1.Strengthening of Management Base

In June 2021, the Corporate Strategy Office was newly established to analyze the current status of the group, identify management issues, and formulate group management strategies.
Going forward, the main body of UNIVA-Oak Holdings, as a holding company, will be responsible for group management strategies to support the foundation of the group. In addition to the investment banking business, UNIVA Oak Holdings will transform its business structure to one that can generate stable earnings from group companies.
The main body of UNIVA Oak Holdings will be the key to fanning the growth of the group’s operating companies and increasing corporate and shareholder value.

2.Outline of Business Strategy

Game-based Business

The investment style of the hunting business is “flow-type investment,” and the investment banking business that we have been engaged in for some time is a good example of this.
The “Highly Profitable Business,” which targets high return capital gains, will continue to grow as one of the pillars of our business.

Agribusiness

The investment style of agribusiness is “stock-type investment,” which includes asset management services such as income from fund management.
The “stable income business,” which provides stable income gains, also includes fee business through advisory services, and we will actively engage in such areas.

Development-type Business

The investment style of development-type business is “build-and-invest”, which is a “growth earnings business” that grows together with the Company as a consolidated subsidiary and affiliate through M&A and other means. This is a business management business in which UNIVA Oak Holdings itself supports the growth of the business by holding shares of the relevant business company from a medium- to long-term perspective and creating value together with the company. In the case of unlisted companies, IPO support is also a part of the business management business. Translated with www.DeepL.com/Translator (free version)

3.Priority Measures

①Business Strategies of Core Subsidiaries, etc.

STERLNG Securities

STERLING Securities, which has been our core investment banking business to date, is a “boutique brokerage firm” that connects investors with portfolio companies in a detailed manner.
In addition to the “highly profitable business” of “equity financing specializing in small caps,” the company will also launch the “asset management business through fund formation,” which is a “stable profit business” as a company holding Type 1 and 2 licenses. With regard to fund formation, we will provide unique funds for large-scale investment projects that have not been familiar to general investors, based on our unique approach as a boutique securities company. Translated with www.DeepL.com/Translator (free version)
Specifically, we envision a multi-billion yen fund for operating leases of foreign-flagged vessels, an emissions trading fund for the U.S. government of California, a real estate development fund in developed regions, a real estate development fund in emerging regions, and an IPO investment fund in a global healthcare venture company.
Preparations are already under consideration so that the company can gradually guide general investors through the formation of those funds.

North Energy

North Energy’s “clean energy business” will promote the construction and sale of solar power generation facilities to new electric power companies by leveraging the company’s knowledge of solar power generation facilities that it has cultivated over many years.
In addition to the sale of solar power generation equipment, we will also enter the business of selling clean electricity generated by our own equipment.

②Creation of a new business portfolio

We will strengthen the functions of Holdings and build a structure that can contribute to stable earnings on a consolidated basis with a diverse business portfolio in addition to the clean energy business of North Energy, which we are currently engaged in, as a “development-type business” conducted as a “business management operation”.
In building a business portfolio that will ensure stable earnings, we will simultaneously reorganize our current business portfolio as necessary and review our development-type business.
We are currently considering M&A of “FinTech companies” and “digital marketing companies” in the IT domain and “beauty and health businesses” in the lifestyle domain. We are also considering M&A of companies in the SD business, which has been the subject of growing social interest. We will also keep a close eye on the SDGs, an area of growing social concern.
And as a result of managing each of these “development-type business” companies, while contributing to the consolidated accounts as a consolidated subsidiary, as North Energy does today, the major aim is to enjoy capital gains in the future when the consolidated subsidiary goes through an IPO as a major result of investment development operations.

4.Communication with Stakeholders

We recognize that dialogue with all stakeholders is an important management issue in the process of enhancing corporate value. To date, our IR has actively engaged in dialogue with stakeholders through our corporate website, holding of individual company information sessions, and participation in IR events. Going forward, we intend to shift from a one-way IR style that focuses on information dissemination to an interactive IR style, and will implement measures to deepen understanding of our group. As a first step, we will launch a new video information media, “Koh-EN TV” (Koh-EN TV), which will provide shareholders and all other stakeholders with not only quantitative reports on our current status, including business performance, but also qualitative information on our business progress, future plans, and messages from President & CEO Inaba. We will also provide our shareholders and all other stakeholders with information on our qualitative business progress and future plans, as well as messages from President & CEO Inaba. Translated with www.DeepL.com/Translator (free version)

Koh-EN TV Delivery No. 1
■Shuji Inaba, President and Representative Director Video Message
https://vimeo.com/user155953395/oakpresents(18 minutes)