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February 10, 2025
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Company Introduction_English

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Taka

February 10, 2025
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  1. Copyright© Strike Co., Ltd. All Rights Reserved. 2 Disclaimers IR

    Email Alerts • To opt-in for our investor email alerts, please subscribe from the link or QR code below. Subscribe to IR Email Alerts • Forward-looking statements contained in these materials are based on information available to Strike Co., Ltd. (the “Company”) as of the date of these materials. The forward-looking statements herein will not be updated or revised to reflect future events or conditions. • Forward-looking statements involve risks and uncertainties. The Company’s future performance and results may differ from these forward-looking statements due to known and unknown risks, uncertainties and other factors.
  2. 01 About Strike 02 Our Advantages 03 Our Growth 04

    Contributions to the M&A Market +α Market Information
  3. Copyright© Strike Co., Ltd. All Rights Reserved. 5 1997 Founded

    450 Employees 120.3M USD Net sales* 9 Offices nationwide Headquartered in Tokyo Japan 3rd Largest M&A Advisory Firm in Japan 350 M&A Deals Closed per year 28.9% CAGR* * FY09/2024, Advisory Fee Strike at a Glance
  4. Copyright© Strike Co., Ltd. All Rights Reserved. 6 We match

    sellers with buyers and receive brokerage fees from both parties. We also act as financial advisors in some cases, representing either the seller or the buyer. Business Model Transfer of business Payment of Value Buyer Seller
  5. Copyright© Strike Co., Ltd. All Rights Reserved. 7 Flow of

    M&A Brokerage Business Seller Buyer Sign M&A brokerage agreement Match seller with buyer Make adjustments to terms Sign final contract Sign memorandum of understanding (MoU) Source potential seller Close the deal Success fee Fee at MoU signing 1. Sourcing 2. Matching 3. Execution Sign M&A brokerage agreement
  6. Copyright© Strike Co., Ltd. All Rights Reserved. 8 No start-up

    fee and low intermediary fee upon MoU signing. Seller Buyer Start-up fee Free Free Fee at MoU signing ¥1–3mn when MoU is signed ¥1–3mn when MoU is signed Success fee (Lehman formula) Value of seller’s equity and officers’ severance pay, etc. Value of seller’s equity and total debt Portion below ¥500mn 5% Portion below ¥500mn 5% Portion from ¥500mn to ¥1bn 4% Portion from ¥500mn to ¥1bn 4% Portion from ¥1bn to ¥5bn 3% Portion from ¥1bn to ¥5bn 3% Portion from ¥5bn to ¥10bn 2% Portion from ¥5bn to ¥10bn 2% Portion above ¥10bn 1% Portion above ¥10bn 1% Fee Structure (Brokerage Deals) ◼ Since sellers pay the brokerage fees out of their sale proceeds, the base for calculating these fees is set as the seller’s sales value, excluding the debt portion, to alleviate their burden.
  7. Copyright© Strike Co., Ltd. All Rights Reserved. 9 Low start-up

    fee and low intermediary fee upon MoU signing. Seller Buyer Start-up fee ¥2 Million yen/Month ¥2 Million yen/Month Fee at MoU signing ¥1–3mn when MoU is signed ¥1–3mn when MoU is signed Success fee (Lehman formula) Value of seller’s equity and officers’ severance pay, etc. Value of seller’s equity and total debt Portion below ¥500mn 5% Portion below ¥500mn 5% Portion from ¥500mn to ¥1bn 4% Portion from ¥500mn to ¥1bn 4% Portion from ¥1bn to ¥5bn 3% Portion from ¥1bn to ¥5bn 3% Portion from ¥5bn to ¥10bn 2% Portion from ¥5bn to ¥10bn 2% Portion above ¥10bn 1% Portion above ¥10bn 1% Fee Structure (Financial Advisory Deals) ◼ Since sellers pay the brokerage fees out of their sale proceeds, the base for calculating these fees is set as the seller’s sales value, excluding the debt portion, to alleviate their burden.
  8. Copyright© Strike Co., Ltd. All Rights Reserved. 10 M&A Track

    Record in Various Industries M&A Deals Closed by Industry Note: Breakdown of the number of businesses sold by industry Total number of M&A deals closed since the Company’s founding to FY24/9 Thanks to a vast referral network, we have a diverse M&A portfolio spanning multiple industries, which positions us to adeptly manage unique, specialized projects. Capable of flexibly responding to changes in the external environment and M&A needs. Construction 15.5% Manufacturing 13.6% Wholesale and agency services 8.0% Healthcare and nursing care 7.4% IT 7.2% Retail and distribution 7.0% Services 6.9% Restaurants and food services 6.1% Transportation and logistics 5.7% Real estate 3.6% Dispensing pharmacies 3.5% Recruiting 3.4% Leisure and accommodation 2.3% Printing and media 2.1% Building maintenance 1.6% Education 1.5% Other 4.6% FY23/9 FY24/9 Construction (20.8%) Construction (18.3%) Services (13.0%) Services (13.9%) Manufacturing (12.1%) Manufacturing (11.5%) Wholesale and agency services (9.2%) Healthcare and nursing care (11.5%) Healthcare and nursing care (8.2%) Wholesale and agency services (10.3%) Top 5 industries in the recent two years
  9. Copyright© Strike Co., Ltd. All Rights Reserved. 11 9 offices

    nationwide Chubu Nagoya sales office Tokyo Tokyo headquarters Hokkaido Sapporo sales office Chugoku Hiroshima sales office Kyushu and Okinawa Fukuoka sales office Osaka Osaka sales office Tohoku Sendai sales office Shikoku Takamatsu sales office Enhancing our service by establishing offices in each regional block of Japan and providing quality support to our clients at their closest office. Kyoto Innovation Office Establishing a Nationwide Sales Network in Japan
  10. Copyright© Strike Co., Ltd. All Rights Reserved. 12 Who We

    Are Company name Strike Company Limited Established July 1997 Share capital ¥823 million (as of September 30, 2023) Representative Kunihiko Arai, President and CEO Headquarters 15th floor of Mitsui & Co. Building 1-2-1 Otemachi, Chiyoda-ku, Tokyo, Japan Employees 368 (excluding temporary staff; as of Sept 30th, 2024) Net sales, operating profit Net sales of 120.3 Mil USD and operating profit of 45 Mil USD (operating profit margin of 37.3%) in FY09/24 Business M&A Advisory, Brokerage business Mission Create Partnerships that Change the World
  11. Copyright© Strike Co., Ltd. All Rights Reserved. 13 ⚫ Born

    in 1970 in Chiba Prefecture, Japan. ⚫ Became a CPA while in university, with the goal of one day starting his own business. ⚫ Joined 「Ohta Showa Audit Corporation」 (now Ernst & Young ShinNihon LLC) after graduation. ⚫ While working as an accountant, he became involved in M&A and was impressed by its potential to significantly transform businesses and greatly impact the people involved. ⚫ Founded Strike Company Limited in July 1997. ⚫ Currently serves as Representative Director of M&A Intermediaries Association Kunihiko Arai President & CEO CEO Bio
  12. Copyright© Strike Co., Ltd. All Rights Reserved. 14 Organization (as

    of October 1, 2024) Consulting Department Business Corporation Department Corporate Advisory Department Growth Strategy Department Hokkaido Sales Department Nagoya Sales Department Kansai Sales Department Shikoku Sales Department Kyushu–Chugoku Sales Department Tohoku Sales Department Sales Support Section Information Systems Department Marketing Department HR Development Section Board of Directors Representative Director Internal Audit Office Consulting Division Public Relations Department M&A Online Editorial Department Human Resources Department Future Strategy Office Innovation Support Office Administration Department Audit and Supervisory Committee Investment Office Business Promotion Department Corporate Advisory Department M&A Online Business Development Office Operations Review Department General Meeting of Shareholders Corporate Strategy Department Legal Department Cross-Border M&A Team
  13. Copyright© Strike Co., Ltd. All Rights Reserved. 16 Our Competitive

    Advantages Consultants Database Sellers Buyers Sourcing channel 1 Matching capability 2 Internal system 3 Team organization 4 People & culture 5 Five strengths supporting our growth
  14. Copyright© Strike Co., Ltd. All Rights Reserved. 17 1) Sourcing

    Channel 661 712 923 0 200 400 600 800 1,000 FY22/9 FY23/9 FY24/9 Number of new contracts Clients (Sellers and Buyers) Referrals: 49.8% Direct Sourcing: 50.2% Network Clients are referred from our network of more than 1,700 partners. 70.3 85.7 82.0 0.0 20.0 40.0 60.0 80.0 100.0 FY22/9 FY23/9 FY24/9 Average expected sales per new contract Million yen Strengthened relationships with business partners has led to an increase in the number of referrals. Increased focus on direct sales to larger companies has resulted in higher average sales per deal. Increase the number of new contracts and average sales per deal closed by maintaining a good balance between direct sourcing and referrals.
  15. Copyright© Strike Co., Ltd. All Rights Reserved. 18 Enhance client

    satisfaction by offering sellers a broad range of buyer options 1 2) Matching Capability Acquisition needs of +18,000 companies Our consultants use Strike's internal database of M&A needs for over 18,000 companies to make direct proposals to potential sellers. All consultants can propose potential acquisition targets for all projects. Approx. 26,000 potential acquisition targets are proposed annually. All-hands deal meeting 2 26,000 3 M&A brokerage site SMART Our M&A brokerage site SMART garners over 4,500 annual inquiries from potential buyers about anonymously listed deals. 4,500 4 Extensive network of partners We receive referrals of companies that wish to acquire other companies from partner financial institutions, accounting firms, and others.
  16. Copyright© Strike Co., Ltd. All Rights Reserved. 19 3) Sales

    Management System Increase operational efficiency and optimize matching Leverage rich enterprise data that surpasses our competitors’ Company data Acquisition needs Contains all corporate data with corporate numbers Contains M&A needs of more than 17,000 companies collected through daily sales activity Linkage with Japan's first online M&A service SMART Annually, we receive 4,500 inquiries from potential buyers, which are used for matching and accumulating acquisition needs. Unique Sales Management System 1. Client search 2. Automated matching & internal proposal 3. Sharing activity status 4. Project management Enhance operational efficiency and optimize matching by incorporating a wealth of corporate data into our internal sales management system.
  17. Copyright© Strike Co., Ltd. All Rights Reserved. 20 We aim

    to maximize the seller’s profit, not act as a brokerage. Bid MOU Nego- tiation SPA Signing Closing Broke- rage Brokering from a neutral standpoint, seeking common ground through negotiations. We introduce a wide range of buyers by leveraging the network cultivated through our brokerage services, thereby maximizing sale prices. Leading in matching with “SMART”, the first Internet M&A platform made in Japan. 1 2 1st Round Bid LOI 2nd Round Bid SPA Signing Closing FA Maximize the seller’s profit, extracting better conditions by controlling the bidding processes. 4) Sell-Side M&A Advisory Accounting Firms Law Firms M&A Boutiques VC Funds Public Institutions Financial Institutions
  18. Copyright© Strike Co., Ltd. All Rights Reserved. 21 Financial Advisory

    Management processes leading to closing; contact with candidates, M&A process management, negotiation strategy formulation, actual negotiation representation, M&A Strategy・Target Selection Review your company's management strategy, conduct domestic and international market and business structure researches, and list M&A candidates that match your company. Due Diligence Due diligences of business, financial, and tax integrated with financial advisory services. Financial Modeling/Valuation Creation of interconnected financial models for three financial statements across multiple scenario cases, and valuation tailored to purposes such as transactions and financial reporting. We support M&A success from origination to closing with one-stop services. 5) Buy-Side M&A Advisory
  19. Copyright© Strike Co., Ltd. All Rights Reserved. 22 We can

    access a wide range of buyers, including unlisted companies such as mid and small- cap firms, allowing for broader outreach to potential candidates. We support sell-side FA in their buyer search. Seller Listed Companies Unlisted Companies Leading Local Company Buy-Side FA Sell-Side FA Cover the buyer segment comprehensively and multi-layeredly Startups/ Ventures Potential Buyer 6) Services for FA (Financial Advisors)
  20. Copyright© Strike Co., Ltd. All Rights Reserved. 23 Kunihiko Arai

    President & CEO Nobuo Suzuki Director & CHO Takafumi Toyozumi Cross-border M&A Advisor Out–In, USA, Australia, Europe Region Buyer Seller Having a dedicated Team with M&A expertise exclusively focusing on the overseas transactions providing FA brokerage advisory support with the knowledge of our local network and specialized team. Dedicated Cross-border M&A Team Execution of both In-Out & Out-In M&A Shizumi En Cross-border M&A Advisor China, Taiwan, Korea Region Yuma Yoshimizu Cross-border M&A Advisor Korea, South-East Asia Region
  21. Copyright© Strike Co., Ltd. All Rights Reserved. 25 1997 Strike

    founded 1998 Launches Japan’s first M&A brokerage site, SMART 2016 Goes public on the Mothers section of TSE 2017 Listing changes to the First section of TSE 2022 Listing changes to the Prime section of TSE 2014 Strike shifts to growth strategy following listing of other M&A brokerage firms Focus on quality Focus on quality & growth 1997 2024 2016 FY09/23 Net Sales 92Mil USD FY09/23 Profit 34.6Mil USD Top-Class Growth and Commitment to Quality 33% CAGR Our Growth ※1USD =150yen
  22. Copyright© Strike Co., Ltd. All Rights Reserved. 26 Target Sales

    Composition 2023 Business succession Innovation M&A, etc. New businesses (Cross-border) Future Growth Strategy In addition to further increasing our share of business succession M&A, we intend to focus on facilitating innovation M&As. We also plan to expand into peripheral business fields and new business domains to achieve sustainable growth. M&A that drive Startup growth and support the creation of new businesses and corporate transformation. Branch out into fields that complement our core M&A brokerage business.
  23. Copyright© Strike Co., Ltd. All Rights Reserved. 28 Operation of

    M&A Portal Site Publication of M&A Yearbook The M&A Yearbook is a magazine-book covering data for all M&A deals carried out by listed companies in a year, examining the deals from various angles, including monetary value and industry type. M&A Database Our M&A database contains timely disclosures on M&A deals that can be searched by company name, securities code, scheme, and industry. Large Shareholding Report Database We update and disclose the Large Shareholding Report Database, which provides insight into indicators of M&A activity and trading trends among major investors. We provide all large shareholding report data submitted to EDINET. Gather and leverage M&A insights Offer information free of charge to foster M&A opportunities
  24. Copyright© Strike Co., Ltd. All Rights Reserved. 29 The M&A

    Advisors Association is a self- regulatory organization established for the purpose of improving the quality of M&A intermediary services, promoting the sound development of the M&A intermediary industry as a whole, and supporting companies engaged in M&A through the thorough implementation of appropriate transaction rules, including the M&A Guidelines for SMEs. We will actively engage in the activities of the association and contribute to the sound development of the industry. Name M&A Advisors Association (MAAA) Established October 1, 2021 Representative director Suguru Miyake President and Representative Director Nihon M&A Center Inc. Directors Kunihiko Arai President and CEO Strike Co., Ltd. (Representative Director until July 2025) Satoru Nakamura President and CEO M&A Capital Partners Co., Ltd. Ryosuke Kubo President Ondeck Co., Ltd. Yasuhito Shinoda President Meinan M&A Co., Ltd. Nobuo Onodera Representative Director The Bank of Yokohama, Ltd. Auditor Yutaro Kikuchi (Attorney-at-law, Kikuchi Sogo Law Office) M&A Advisors Association
  25. Copyright© Strike Co., Ltd. All Rights Reserved. 30 Our Mission

    Create partnerships that change the world Together, we can overcome the reality. Together, we can find the right answer. Together, we can enrich the world. Together, we can exceed expectations. Individually, possibilities are limited, but by joining together we become a great force. The process of coming together can be challenging, but a new world awaits in the future if we overcome those difficulties. We rise as one to overcome any challenge. We listen, put our heads together, and dedicate our all to everyone involved in M&A. We take every step with you to achieve a bright and positive future. Together, we can create partnerships that change the world. We are Strike.
  26. Copyright© Strike Co., Ltd. All Rights Reserved. 32 Market Trends:

    M&A of Startups Currently, there are few M&A deals involving startups in Japan, but there is a lot of room for growth. Acquiring startups as part of R&D investment can help companies grow and increase corporate value more efficiently than if they were to conduct R&D on their own. Small percentage of M&A exits among startups IPO and M&A status of venture capital portfolio companies M&A success rate is higher than R&D success rate Success rate of medium- to long-term R&D and M&A Source: Venture White Paper by the Venture Enterprise Center, included in the Survey Report on M&A Activities of Large Companies and Startups by the Ministry of Economy, Trade and Industry 47 37 42 86 75 89 0% 20% 40% 60% 80% 100% 2017 2018 2019 M&A IPO 870 933 836 59 89 82 0% 20% 40% 60% 80% 100% 2017 2018 2019 18% 82% Success Failure R&D success rate 36% 64% Success Failure M&A success rate Source: Survey on the Establishment of a Japanese Innovation System from a Medium- to Long-Term Perspective by the Japan Research Institute, included in the Survey Report on M&A Activities of Large Companies and Startups by the Ministry of Economy, Trade and Industry Source: Investigation into the Actual Conditions of Companies that Have Conducted M&A (2013) by Deloitte Tohmatsu Consulting Co., Ltd., included in the Survey Report on M&A Activities of Large Companies and Startups by the Ministry of Economy, Trade and Industry In Japan, M&A accounts for one-third of exits. In the US, M&A accounts for over 90% of exits.
  27. Copyright© Strike Co., Ltd. All Rights Reserved. 33 The Japanese

    government has designated 2022 as the “First Year of Startup Creation” and is promoting various policies to create a startup ecosystem, including by announcing the “Startup Development Five-year Plan” in November 2022. As part of these efforts, the government is developing measures to promote M&A deals involving startups. Japanese government’s five-year target and three pillars Tenfold increase in investments in startups over five years Build human resources and networks Strengthen funding and diversify exit strategies Promote open innovation The most important element for a startup is people. Accelerate business formation by fostering startup leaders. Funds are needed for startups to grow substantially. Expand investment from venture capitalists and individuals. Promote open innovation between large companies and startups, including facilitating M&A as an exit option for startups. Source: Government Initiatives for Developing Startups by the Ministry of Economy, Trade and Industry; Startup Development Five-year Plan by the Council of New Form of Capitalism Realization ¥800 billion in FY2022 ¥10 trillion in FY2027 ↓ Essential to develop the exit market Startup M&A market expected to expand Market Trends: M&A of Startups
  28. Copyright© Strike Co., Ltd. All Rights Reserved. 34 Market Despite

    the Influx of New Entrants, Industry competition remains Limited. FA and intermediaries • Unlike listed firms that usually engage M&A financial advisors, unlisted firms often opt for M&A brokerage services because their lower profile makes it harder for them to find buyers on their own. New entrants • Despite a significant increase in the number of new entrants, over 95% of them have fewer than 10 employees1 and are often involved in small deals. • While many of the small M&A boutiques offer services at low fees, the selection of a brokerage is often based more on its sourcing ability and other quality of service than on price. Source: Current Registration Status (as of Jan. 19, 2024) by the Small and Medium Enterprise Agency Large (deal size) Small (deal size) Extensive (geographical reach) Limited (geographical reach) Investment banks Small boutiques Accountant /tax accountant firms Regional banks Strike and other large M&A brokerage firms
  29. Copyright© Strike Co., Ltd. All Rights Reserved. 35 The number

    of M&A deals in Japan during the January-September period in 2023 rose by 54 YoY to 747 (according to information disclosed by listed companies) and is on a high growth pace to reach 1,000 deals per year. Of this total, 604 were M&As between Japanese companies (+29 YoY), while 143 of the deals involved overseas companies (+25 YoY). Both domestic and cross-border M&A activity has been brisk during the period. Source: M&A Online Number of M&A Deals in Japan (based on timely disclosure materials of listed companies) Breakdown of M&A deals (domestic and cross-border deals) Market Trends: Number of M&A Deals in Japan (based on timely disclosure materials of listed companies) Jan.–Sept. 2022 Jan. –Sept. 2023 Total M&As 693 747 M&As among Japanese companies 575 604 Outbound M&As (acquisitions of overseas companies) 69 94 Inbound M&As (acquisitions by overseas companies) 49 39 635 675 680 706 756 785 853 849 877 949 463 481 514 499 562 553 615 620 656 693 747 0 100 200 300 400 500 600 700 800 900 1000 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Deals closed annually Deals closed in Jan.-Sept.
  30. Copyright© Strike Co., Ltd. All Rights Reserved. 36 Market Trends:

    Aging CEOs, Lack of Successors With CEOs aging, there are many companies without successors, even among companies with elderly CEOs. We expect that the market for business succession M&A will continue expanding. Source: Nationwide Survey of Company Presidents’ Ages, Tokyo Shoko Research, Ltd. Aging CEOs years old 60.24 60.43 60.62 60.89 61.19 61.45 61.73 62.16 62.49 62.77 63.02 58.50 59.00 59.50 60.00 60.50 61.00 61.50 62.00 62.50 63.00 63.50 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Average age of CEOs Source: Nationwide Survey on the Percentage of Companies without Successors (2022) by Teikoku Databank, Inc. included in the 2023 White Paper on Small and Medium Enterprises in Japan 39.6% 39.1% 39.3% 38.7% 34.0% 31.6% 31.7% 31.9% 31.4% 33.9% 24.2% 25.1% 24.8% 25.9% 27.8% 4.5% 4.1% 4.0% 4.0% 4.3% 0.0% 10.0% 20.0% 30.0% 40.0% 2018 2019 2020 2021 2022 Family succession Employee succession External succession Founder Business Succession to Third Parties Also on the Rise Reasons for taking over business
  31. Cross-border & Startup M&A Advisor Taka Toyozumi WORK EXPERIENCE 2016.4~

    BIG DAISHOWA Co. Ltd. 2021.2~ CADDi Company Limited 2024.1~ Strike Company Limited EDUCATION Doshisha University Personal Information Born in Tsu, Mie, Raised in Tennessee USA (1~10yrs old) Basketball, Ultimate Frisbee, Movies, Golf Stanford University