New Challenges for a 156-Year-Old Company
UNIVA Oak Holdings Envisions the Future

The February issue features UNIVA Oak Holdings (UOH). UNIVA Oak Holdings, which changed its name in October 2023, is actively promoting collaboration among the operating companies within the UNIVA Group. We have introduced UOH twice before, but this time we asked Mr. Toshiaki Muneyuki, Managing Director, Group COO and General Manager of Corporate Strategy Office at UOH, about UOH's past, present, and future in more detail than ever. We hope that everyone of NAKAMA will gain a deeper understanding of UOH. Thank you very much, Mr. Muneyuki, for this opportunity.

156 years in business

Juan: UOH has many operating companies under its umbrella, so I think there are some areas where it is difficult to see the big picture as a company. We would like to take this opportunity to help every NAKAMA better understand UOH, so please tell us about your past efforts, current projects, and a wide range of future prospects.

Muneyuki: Yes, thank you very much.

Juan: UOH is the oldest company in the UNIVA Group.

Muneyuki: Its roots go back to 1868. The founder, Sajiro Hirata, established Hirata Fishing Net Store to manufacture and sell fishing nets, taking advantage of the demand for fishing gear in Ise Bay, where fishing is thriving. Then, in the early 20th century, with the advent of the industrialization era, they were quick to introduce German and French style netting machines and began mass production of fishing nets. Doing business not only in Japan but also with countries around the world, including Russia, Australia, Canada, the Philippines, and Denmark, Hirata Boseki has grown to become Japan's largest fishing net manufacturer in terms of output.

Juan: In 1949, the company was listed not only on the Tokyo Stock Exchange, but also on the Osaka Securities Exchange and the Nagoya Stock Exchange, and the speed of its growth has been tremendous.

Muneyuki: Yes. Even after becoming a centennial company, the company's momentum has not waned, and it has become a comprehensive textile company that produces and sells fishing nets, with production facilities overseas, including in Kenya, Africa. Very sensitive to the changes of the times, in anticipation of the downturn in Japan's fishing industry, the company entered a series of new businesses, including real estate, food business, and manufacturing and sales.

Juan: In 2001, the company entered the investment business and began providing financial support to listed companies and business restructuring support. In 2005, the company relocated its headquarters to Akasaka, Minato-ku, Tokyo, and said it accelerated its development as an investment banking business.

Muneyuki: In 2006, it changed its name to Oak Capital Co., Ltd. and became a full-fledged independent investment bank, providing support for fundraising by underwriting equity financing for listed companies and supporting and advising on business strategies such as M&A in line with corporate growth strategies. Oak Capital also provided support and advice on business strategies, such as M&A, for corporate growth strategies, and made risk investments that commercial banks were unable to make.

Our goal is to become a federal group company that integrates and grows value.

Juan: In order to get out of the predicament of three consecutive terms of losses, Mr. Inaba took over the management of the company in June 2021 and shifted the management structure from investment banking to "value co-creation business," which is what we are doing now.

Muneyuki: The core of our management strategy is "Value Co-Creation Company: Connecting and Creating Together." It is clear that growth through "competition" has reached its limits. We aim to increase the corporate value of the entire group and expand earnings by creating value together with our operating companies and the group as a whole. For example, efforts have begun to utilize ZYX's expertise to promote new businesses of listed companies for which UOH provides financing and corporate value enhancement support, with the goal of creating a win-win-win situation for all parties involved. Especially after the company name change in October 2023, the former Oak Capital Group and UNIVA Capital Group will have more opportunities to interact and collaborate as one UNIVA Group, and I believe that the awareness of NAKAMA of UOH has also changed considerably. As UNIVA Capital Group executives also serve as directors of UOH Group operating companies and attend strategic meetings such as the UOH Group Management Council, there will be more and more opportunities for value co-creation within the UNIVA Group.

Juan: What specific businesses are you involved in?

Muneyuki: UOH owns nine operating companies that operate in the finance, beauty & healthcare, and clean energy businesses.

Juan: Can you tell us more about each of the businesses?

Muneyuki: In the finance business, Sterling Securities, in cooperation with UOH, underwrites equity financing for listed companies, acts as an M&A broker, and provides fund-related services. In the Beauty & Health Care business, UNIVA Fusion plans and sells beauty and health products such as Kombucha CleanseⓇ. North Energy, a clean energy business, is primarily engaged in the installation and sale of solar power generation equipment. Generated electricity used to be purchased by power companies at a fixed rate, but recently it is being consumed in-house or sold to consumers through new power companies, contributing to the promotion of a decarbonized society as well as reducing electricity costs for the companies and private homes that have installed the systems. In the future, we will contribute to the realization of a carbon-free society by taking on the challenge of various renewable energies, not limited to solar power.

Juan: What departments are there in UOH?

Muneyuki: Corporate Strategy Office that formulates and promotes executive policies for the Group's management strategies. Group Business Management Office, which promotes co-creation projects, develops new investment projects, acquires companies, and manages investees. Group Accounting and Finance Office, which is involved in all aspects of accounting, taxation, and finance for group companies. Group Human Resources and Legal Affairs Office, which is responsible for all human resources, legal affairs and general affairs of the UOH Group companies. Group IR and PR Office, which is involved in all aspects of public relations and investor relations for group companies. Then there is the Group Internal Audit Office, which is involved in the development and operation of internal controls for each Group company. As of December 1, 2023, the company employed 98 people (not including part-time and temporary staff).

The Future of UOH

Juan: Could you also tell us about your current consolidated sales scale and medium-term management targets?

Muneyuki: Currently, the nine operating companies have consolidated sales of between 5 billion yen and 7 billion yen. And in the mid- to long-term, we have set a goal of "25.2.60", which is to surpass our previous record high performance. The goals are 25 billion yen in consolidated net sales, 2 billion yen in consolidated net income, and 60 billion yen in market capitalization.

Juan: That's a pretty big goal.

Muneyuki: Yes, it is not a smooth ride to realization. However, we believe that if we can support each operating company from the front-line level, enhance the three capitals of human, knowledge, and financial resources, actively promote collaboration not only among group companies but also with companies outside the group, and create a chain of "win" benefits for each company to achieve "value co-creation," we can achieve the goal of "25.2.60."

Juan: It is the very embodiment of the "Unite the Values" philosophy. I look forward to UOH's challenge! Thank you, Mr. Muneyuki, for this valuable talk.