Presentation: Enterprise Value in a Period of M&A～How Investors Bridge Valuation Gap

Language: Japanese

Specialty Focus Areas: Equity Investment, Corporate Finance

Panelists
Hirofumi Kasai, Chief Investment Officer, Tokio Marine Asset Management Co., Ltd.
Mikihide Katsumata, CFA, Chief Executive Officer, New Frontier Capital Management Co., Ltd.
Nobuo Sayama, Director, GCA Savvian Group Corporation, Professor, Graduate School of International Corporate Strategy, Hitotsubashi University.
Shinya Tsujimoto, CFA, Head of Research, RCM

MC
Hiroshi Fukai, CFA, Consultant, Finantec Co., Ltd.

Outline
There is a strong possibility that at Japanese companies the strategic corporate value, which is the result of changes to balance sheet structure, to the business portfolio or making major changes to corporate strategy through activities such as M&A, deviates considerably from the corporate value in terms of market capitalization and share price, which is based on present business strategy. A possible reason for this might be the presence of potential takeover defenses in the form of formally introduced hostile takeover defense measures and cross shareholdings. These might lead to a situation where M&A activities as such are being held back, or, alternatively, where pressure on managers and board directors facing M&A activities to think about shareholder returns becomes weaker. On the other hand, it is also possible that there is insufficient pressure by shareholders (especially institutional shareholders as professionals) for management reforms, return of profit or improvements in corporate governance.

The present times of increased M&A activities demand more accountability from management regarding business plans aimed at increasing corporate value. In addition, board directors have to take into account shareholders' property rights in their approach of M&A activities, while professional investors are increasingly expected to pressure for such actions. In this seminar M&A professionals and professional investors will hold a discussion about these issues.

Speaker
Hirofumi Kasai
Hiro Kasai has been Chief Investment Officer of Tokio Marine Asset Management Co., Ltd. since 2002. Prior to being appointed to his current position, he worked as senior portfolio manager, Japanese equities since 1997. Before joining Tokio Marine Asset Management, he was a portfolio manager at Tokio Marine & Nichido Fire Insurance Co., Ltd., covering Japanese equities and global fixed income management. Hiro holds a B.S. from the University of Tokyo and a M.S. from Massachusetts Institute of Technology.

Mikihide Katsumata, CFA
Joined Industrial Bank of Japan in 1983 and engaged in US Work-out, Buyout Fund Investments, Highly Leveraged Transactions at New York branch from 1991 to 1997. Joined Merrill Lynch Nippon Securities in 1999 as Global Principal Investments, Director. Established Nippon Mirai Capital Co., Ltd. and became Director, Partner & CFO in 2002. Established New Frontier Capital Management Co., Ltd. and became Chief Executive Officer in 2007. Mr. Katsumata obtained a B.S. from the University of Tokyo in 1983, Master of Arts in Law and Diplomacy, Fletcher School of Law and Diplomacy, Tufts University in 1987, and HBS Executive Education, “Strategy: Building and sustaining Competitive Advantage”, Harvard Business School in 2007.

Nobuo Sayama
Graduated from Kyoto University Faculty of Engineering, Department of Polymer Chemistry. Joined Teijin Limited in 1976 and was engaged in polyester polymer-related business. Joined Mitsui Bank (current Sumitomo Mitsui Banking Corporation) in 1987 and was engaged in M&A related business. Graduated from the Graduate School of Business, New York University in 1994 with an MBA. Graduated from the Graduate School, Tokyo Institute of Technology (Ph.D) in 1999 and jointly established Unison Capital, Inc. in the same year. Became a representative director of GCA in 2004 and Director, GCA Savvian Group Corporation in 2008. Became an assistant professor at the Graduate School of International Corporate Strategy, Hitotsubashi University in 2004. Became professor in 2005. Standing director of Japanese Association of Turnaround Professionals (JATP), Ministry of Economy, Trade and Industry; Committee member of the MBO Society and Corporate Value Society of Financial Services Agency and TOB working group.

Shinya Tsujimoto, CFA
Shinya joined RCM in 2007 from Meiji Dresdner Asset Management (MDAM), where he served as Head of Research. He started with MDAM in January 2001 as an analyst with primary responsible for the retail sector, and was appointed Head of Research in October 2002. Prior to joining MDAM, he was an analyst at Tokio Marine Asset Management. Shinya received his MSc in Finance with Distinction from Lancaster University in 1999 and his BA in Economics from Hitotsubashi University in 1989. He also hold certificate of Certified Public Accountant (CPA, US).

Hiroshi Fukai, CFA
Joined Oji Paper Co., Ltd. in 1990 and was engaged in financial management business. Joined Finantec Co., Ltd. in 2001 and is engaged in IR consulting business. Graduated from Waseda University, School of Commerce in 1990. Graduated from the Graduate School of Business Administration, University of Minnesota in 1998 with an MBA.

Registration
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