Detailed Description of Portfolio Companies of Fund III
Yodogawa Transformer co.,ltd.
| Features | Yodohen, a leading company in manufacturing and renting of power receiving and transforming equipment, offers a wide variety of products with ample inventory ready for use and boasts an industry leading track record in the rental service, especially “Active Filter” for ultra-high voltage or high voltage facilities for large-scale construction sites. Backed by its technological superiority, solution-based marketing and product customization capability, Yodohen has secured numerous contracts with major players in construction, electrical engineering and industrial equipment and generated stable cash flow over the years. Going forward, Yodohen is expected to enjoy strong demand for the power receiving and transforming equipment from the large construction projects relating to the 2020 Olympic Games in Tokyo, conventional Bullet Train extensions and the new maglev type Bullet Train (the “Linear Chuo Shinkansen”) as well as the refurbishment of aging roads and bridges built in the high growth period of 1960’s and 1970’s. It may find another growth potential by identifying a new rental services opportunity and expanding into overseas markets in collaboration with major construction companies and engineering companies |
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| Investment Pattern | Business succession Acquisition of the owner’s share |
| Investment Theme | Polaris aims to archive Yodohen’s “Business model innovation” by promoting organic growth of renting power receiving/ transforming equipment and executing inorganic growth strategies including M&A and overseas expansion. Polaris will also strengthen its business franchise and streamline its business administration and operation control structure to increase its enterprise value and aim listing on a stock exchange in several year. |
| Date of Exit | January 2018 |
| Exit Pattern | Trade sale of entire holding to ORIX Rentec Corporation |
| Exit Story | Since our investment, in addition to sending in multiple management talents, Polaris has helped Yodogawa Transformer co.,Ltd. to transform its typical management style that was often seen in family-held companies to the well-articulated and organized effective management style. The strategic initiatives include such as the identification of KPIs that represent the business model and the development of financial control system, which includes the introduction of budget management system by business segment and the visualization of pipeline deals. The company also has achieved to solidify its position as a leading company in the industry through 1) the introduction of account manager system, which contributes to enhancing the relationship with important clients and accelerating the acquisition of challenging big projects; 2) streamlining the production and logistic processes by integrating different functions into the newly built Kansai factory; 3) the introduction of productivity indices and monitoring system; and 4) the achievement of both increased revenues/ profits and significantly built-up pipeline projects that contribute to mid-to-long term growth with the hands-on support in implementing various measures for marketing and production. Post exit, the company intends to further increase its enterprise value by creating various synergies such as 1) the acceleration of acquisition of new customers and projects, leveraging on the sales network and clients base held by ORIX Group and 2) enhancement of product lineup by collaborating with ORIX Rentec Corporation, which provides rental services of various instruments, equipment, and devices. |
