Post on 18-Sep-2020
maneo ~Bringing Japanese Money to the World~
July 2016
Copyright © maneo Inc. All rights Reserved.
Name maneo Inc.
Office Location NBF Hibiya Building 24F, 1-1-7 Uchisaiwai-cho, Chiyoda-ku, Tokyo, Japan
Establishment April 2007
Revenue & Operating Income (FY 2015-2016)
Revenue: ¥1.1B 【10.7M USD】 ※$1 = ¥105 Operating Income: ¥204M 【1.9M USD】
Employees 24 (Including Affiliated Companies)
Affiliated companies maneo Market (Parent Company), UBIfinance (Subsidiary of maneo Market)
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Company Information
Graduate of Keio University (Japan’s oldest private university) 1997 Enters 7-Eleven Japan 1999 Transfers to Air Link Inc. - Father’s company 2005 Enters UBI Inc. - Real estate investment/lending company - maneo’s former parent company 2013 Becomes CEO of maneo
CEO KENJI TAKIMOTO
Copyright © maneo Inc. All rights Reserved. 3
Earnings Growth & Company History
(Millions of USD) Brief History of maneo April 2007 Company established October 2008 maneo platform launched Consumer financing via Japan’s first-ever P2P platform April 2011 Kenji Takimoto acquires maneo Shift from consumer finance to asset-backed corporate lending. Large increase in loans funded. September 2013 Kenji Takimoto becomes CEO of maneo July 2015 maneo begins franchising its platform maneo employs a franchising scheme where companies from various fields can raise funds for projects via their own crowdfunding platform. February 2016 maneo partners with GMO Click Shares Company with the largest FX trading volume in the world (1120 trillion yen (10.7 trillion USD) in 2015)
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FY 2012-2013 FY 2013-2014 FY 2014-2015 FY 2015-2016
Revenue Operating Income
10.7M USD
Copyright © maneo Inc. All rights Reserved. 4
Social Lending (Loan-based Crowdfunding) Business Model
Borrower Investors
maneo
maneo Market
① Depositing of Funds
④ Return of Funds
Silent Partnership Agreement
③ Repayment
② Loan
Type 2 Financial Instruments Licence
・Solicitation & Recruitment of Investors
・Creation of Loan Funds
Lending Licence
Parent Company
Copyright © maneo Inc. All rights Reserved. 5
Profit Structure & Case Study
Borrower Investors maneo
Return 5~8% per year
Interest 10~15% per year
Value of Asset 10M USD
IRR: 7%
Bank Loan $6M USD
Interest
2% Per Year
Missing capital $1.5M USD
★Borrowers raise capital with the help of the crowd
which a bank loan and equity will not cover.
★Since this capital is more
expensive, maneo can charge more interest and provide
better returns to investors.
※maneo takes the spread between the interest paid by borrowers and the interest paid to investors
Case Study: Financing to
purchase real estate (commercial)
Equity $2.5M USD
Copyright © maneo Inc. All rights Reserved. 6
Social Lending’s Appeal & Potential (Investors’ Perspective)
★No loss on principal since 2011 (when maneo shifted to asset-backed corporate lending). ★All loan funds are backed by collateral or a guarantee. ★LTV (Loan to Value) is typically below 70%. ★Can invest as little as 10,000 yen ($95) -> Easy to start investing. ★Very good returns in an extremely low interest rate environment.
Average Interest Rates at Japanese Financial Institutions (% per annum, as of June 29 2016)
Maturity 1M 3M 6M 1Y 2Y 3Y 4Y 5Y 7Y 10Y
<¥10M
(<$95,000)
0.016 0.016 0.016 0.016 0.019 0.020 0.020 0.022 0.029 0.036
¥3~10M
($29,000~$95,000)
0.016
0.015 0.015
0.016 0.017 0.018
0.018
0.019 0.023 0.031
>¥3M
($29,000)
0.016
0.015
0.015
0.016
0.017 0.018 0.017 0.018 0.019 0.027
maneo offers 5~10% annual returns to investors on its loan funds
Copyright © maneo Inc. All rights Reserved.
How Social Lending Can Be Used in the Real Estate Industry
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★Purchase an old property, renovate it and sell it to a buyer at a higher cost Use social lending to finance the purchase of the house & renovation costs
★Purchase undeveloped land and develop it Use social lending to finance the purchase of the land and development costs
★Purchase land and construct a building on it Use social lending to gather funds which a bank loan will not cover
★Construct a hotel, aged-care facility (old people’s home) etc. Use social lending to gather mezzanine debt or preferred equity
Copyright © maneo Inc. All rights Reserved. 8
maneo’s Franchise System
・Solicitation & Registration of Investors ・Operation of Website of each Platform
TK Agreement
Type 2 Financial Instruments Licence
Investors
Loan
Borrower
TK Agreement
Commercial Real Estate
US Fix & Flips (Renovation of Houses)
TK Agreement
SMEs in Japan & Abroad
More platforms to be launched this financial
year
Borrower
Loan
Loan
Loan Operation & Capital Leasing
TK Agreement
Loan TK
Agreement
LA Fix & Flips
Investors at a major Japanese FX & Stock Brokerage Company
Loan Loan
★TK Agreement = Silent Partnership Agreement★
TK Agreement
maneo (Franchiser) Franchisees
TK Agreement
Loan
Copyright © maneo Inc. All rights Reserved.
Introduction to a Partner Real Estate Platform in Japan
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LC Lending
• Subsidiary of Logicom, listed company on JASDAQ (8938)
• Logicom purchases large commercial buildings (such as shopping centres) and leases them out to retail stores for 10-20 years.
• Logicom uses LC Lending to gather funds which a bank loan and equity will not cover.
(Eg: 70% debt from a bank, 15% equity, 15% via social lending) • 3.5 billion yen (131 million ringgit) raised since July 2015
Copyright © maneo Inc. All rights Reserved.
American Funding • Platform for fix & flip projects in Los Angeles and other US cities • To be released today (20 July 2016)!
Introduction to our Real Estate Platforms
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Gaia Funding
• Run by a Japanese and a Taiwanese (US Citizens) who are also directors at an investment management company.
• Use social lending to provide financing to developers who do “fix & flip” (renovation) projects in Silicon Valley, Washington, Hawaii etc.
• Raised over 115 million yen (4.3 million ringgit) each month since October 2015.
Copyright © maneo Inc. All rights Reserved.
Solicitation & registration of
Investors
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Information about Franchising
Basic Business Model
ABC Real Estate
(Malaysian Entity)
Japanese Investors
ABC Lending
(Japanese Entity)
Returns Loan
1% Fee on Assets Under Management
maneo Market
Fees Associated with Platform ・Initial cost: 100 million yen ($950,000) ・Royalty & Maintenance Fee 1% of Assets Under Management (AUM) -> Server maintenance & royalty. ・ Running costs in Tokyo (two staff, office) -> Estimated at 10 million yen ($95,000) per year Platform is recommended for those companies that can maintain 2 billion yen ($19 million yen) of deals/AUM
Type II Financial Instruments Licence
maneo Market’s Major Roles ・Operation of website on behalf of the franchisee ・ Creation of loan funds using its Type II Financial Instruments Licence ・Solicitation & registration of investors on behalf of the franchisee
Copyright © maneo Inc. All rights Reserved. 12
Social lending’s Appeal & Potential (Franchisee’s perspective)
★Can gather funds for projects directly from Japanese investors.
★Due to the structure of the TK agreement, losses suffered by franchisees are borne by investors. -> Reputation risk exists.
★Franchisees determine their own cost of capital (how much to pay investors). -> Low interest rates in Japan have lead Japanese to have low expectations on return on investment.
★Funds raised in Japan can be used overseas.
★No need to acquire relevant financial licences in Japan -> can leverage maneo Market’s licence.
★Over $5 trillion USD is sitting in Japanese banks earning very, very low returns. -> Huge need amongst the crowd to find attractive fixed-income, safe investment products.
Amount of savings in Japan (end of March 2016, Bank of Japan figures)
Savings in Japan (total) ¥796 trillion ($7.6 trillion)
Savings in Japan (households) ¥543 trillion ($5.2 trillion)
Copyright © maneo Inc. All rights Reserved.
Collaboration with Other Platforms in Japan
maneo’s loan funds will be available on the website of
GMO Click Shares from October 2016
*************************** GMO Click Shares: • Largest FX trader in the world
by volume • 450,000 registered users ***************************
↑↑↑Impression of maneo’s loan funds on GMO Click Shares’ website↑↑↑
Copyright © maneo Inc. All rights Reserved. 14
Statistics (Loans Originated & User Numbers)
As of July 2016
Total loans originated to date
Registered users
¥50 Billion 【476 Million USD】 【1.9 Billion Ringgit】
34,250
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Funds Currently Lent Out 12.8 Billion Yen
【122 Million USD】 【477 Million Ringgit】
Active Users
4,000
Copyright © maneo Inc. All rights Reserved.
The Social Lending Market in Japan
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Platform Main business Platform Launch Loans Originated Notes
・Business loans October 2008 ¥50B 【$476M】
Japan’s first-ever social lending company
・Loans backed by commercial real estate ・Fix-and-flip loans backed by real estate in the USA ・Operational & capital leasing, factoring etc. ・Loans to SMEs in Japan and abroad
August 2015
October 2015
February 2016
April 2016
¥3.5B 【$33.3M】
¥1.1B
【$10.5M】
¥600M 【$5.7M】
¥370M 【$3.5M】
Operated by a listed company Using our platform in San Francisco, Seattle etc. Financing in industries such as hospitality. Also providing financing to a Hong Kong consumer finance company
・Loans to SBI shareholders backed by SBI shares ・Loans backed by real estate
March 2011 ¥11B 【$105M】
Social lending arm of a listed financial holding company
・Business loans (Japan & abroad) December 2013 ¥7.1B 【$68M】
Stock brokerage company involved in social lending
・Loans abroad July 2014 $850M 【$8.1M】
Financing to consumer finance companies etc.
・Loans backed by real estate May 2014 ¥5.2B 【$50M】
Loans to real estate developers
・Loans backed by real estate March 2012 ¥500M 【$4.8M】
Loans to real estate developers
Franchisees using our platform
Copyright © maneo Inc. All rights Reserved. 16
4.Appendix (Investor Statistics)
52.2%
15.8%
8.5%
4.8%
3.3% 8.3%
4.6% 1.0% 1.0%
-¥1M ¥1-2M ¥2-3M
¥3-4M ¥4-5M ¥5-10M
¥10-20M ¥20-30M ¥30M+
5.3%
7.2%
7.0%
6.3%
5.1%
17.9% 20.5%
8.7%
22.0%
-¥1M ¥1-2M ¥2-3M
¥3-4M ¥4-5M ¥5-10M
¥10-20M ¥20-30M ¥30M+
Makeup of loans by investment amount
8.1%
37.6%
35.1%
13.9%
5.4%
20's 30's 40's 50's 60's
Amount invested per investor Makeup of investors by age