Monex Group, Inc. · TSE:8698
Monex — Q1 FYE March 2025 Earnings Presentation
68 slides from Monex's earnings presentation, Jul 26, 2024
Slide 1: Financial Results for 1Q of Fiscal Year Ending March 31, 2025
TSE Prime : 8698 Monex Group Financial Results for 1Q of Fiscal Year Ending March 31, 2025 July 26, 2024
Slide 2: Corporate Philosophy
Corporate Philosophy Always a step ahead of the “Y” in “MONEY,” our name MONEX expresses our desire to embrace all people who are engaged at the forefront of our future. With state-of-the-art IT technology, globally universal values and a sense of professionalism, Monex Group designs innovative ways
Slide 3: Table of Contents
Corporate Philosophy p.1 Table of Contents p.2 Ⅰ. Highlights p.3 - p.11 Ⅱ. Consolidated Performance p.12 - p.35 Ⅲ. Business Update p.36 - p.53 Appendix: Group Overview p.54 -p.65 Disclaimer p.66 This is an English translation of Japanese presentation materials prepared in connection with the disclos
Slide 4: I. Highlights
MONEX GROUP I . Highlights
Slide 5: Commitment for FYE Mar. 2025
Commitment for FYE Mar. 2025 Commit to “growth investment” while pursuing each group company’s strategy. Aim for sustainable profit growth and increased corporate value through management that is more conscious of cost of capital and stock price. FYE Mar. 2024 FYE Mar. 2025 Done Commitment ✓Clarify
Slide 6: Additional Shareholder Distribution
Additional Shareholder Distribution Announced share buyback to practice management that is more conscious of cost of capital and stock price. ◆ Overview of Share Buyback ◆ Our Basic Policy for Shareholders Distribution Announced the following share buyback on Jul. 26, 2024 Our basic principle is to
Slide 7: Sustainable Profit Growth
Sustainable Profit Growth Utilize the funds obtained from the optimization of business portfolio for growth investments. Aim for stable EPS* growth by pursuing leaping growth opportunities. Existing Businesses and Growth Investment Area Consolidated Performance Growth Investment Capital and Business
Slide 8: Boom Securities (Hong Kong)
Boom Securities (Hong Kong) Decided to sell all of its shares in Boom Securities* (“Boom”), which belongs to the Asia Pacific segment, in an attempt to optimize the Group's business portfolio. Overview The Company holds shares in Boom through Monex International Limited (“MIL”) and has decided to se
Slide 9: Consolidated Profit Attributable to Owners of the Company
Consolidated Profit Attributable to Owners of the Company Quarterly profit attributable to owners of the Company remains stable due to favorable performance of TradeStation and Monex Securities. (JPY Million) Profit attributable to owners of the Company 8,000 Monex Securities US segment Crypto Asset
Slide 10: Business Performance of the US Segment
Business Performance of the US Segment Transaction related revenue remained steady and the gains on management of cash deposits remained strong due to high interest rate. Quarterly revenue and profit achieved their record highs in USD as well as after conversion to JPY. Quarterly Revenue of the US S
Slide 11: Business Performance of the Crypto Asset Segment
Business Performance of the Crypto Asset Segment While trading income decreased due to lower market volatility, we recorded IEO* revenues during the quarter. Within this segment, Coincheck continues to control expenses and maintain a structure that has the potential to generate significant profits w
Slide 12: Reference: Business Performance of Monex Securities (JGAAP)
Reference : Business Performance of Monex Securities (JGAAP) Steady growth in net financial income and mutual fund related revenue offset a decline in brokerage commissions. Further revenue growth is expected through the progress in the alliance strategies going forward. Quarterly Revenue and Net In
Slide 13: II. Consolidated Performance
Ⅱ. Consolidated Performance 12
Slide 14: Highlights 1Q of FYE Mar. 2025 (3 months)
Highlights 1Q of FYE Mar. 2025 (3 months) Strong Japan and U.S. brokerage businesses generated stable consolidated profits. Even with a lower market volatility in crypto asset market and subdued customer transactions at Coincheck, consolidated quarterly profit* was ¥2.5B. Reported ¥0.7B as a profit
Slide 15: QoQ Comparison (3 months) Consolidated Performance
QoQ Comparison (3 months) Consolidated Performance FYE Mar. 2024 FYE Mar. 2025 4Q 1Q Rate of (JPY million) Variance Reference change (Jan. 2024– Mar. 2024) (Apr. 2024– Jun. 2024) Total operating revenue after P16: Analysis of Japan segment deducting financial expenses and 17,435 16,962 -474 -3% P18:
Slide 16: QoQ Comparison (3 months) Segment Performance
QoQ Comparison (3 months) Segment Performance Japan US Crypto Asset Asia Pacific Investment (JPY million) 2024/3 2025/3 2024/3 2025/3 2024/3 2025/3 2024/3 2025/3 2024/3 2025/3 4Q 1Q 4Q 1Q 4Q 1Q 4Q 1Q 4Q 1Q Total operating revenue after deducting Record financial expenses and cost of sales 2,062 2,30
Slide 17: QoQ Analysis: Operating Revenue (Japan)
QoQ Comparison (3 months) Analysis: Operating Revenue Japan: Management fees, etc. from 3iQ Digital Holdings, a newly acquired subsidiary, were recorded and offset a decrease in success fees from the Monex Activist Fund. ■ Total operating revenue after deducting financial expenses Quarterly total op
Slide 18: QoQ Analysis: SG&A (Japan)
QoQ Comparison (3 months) Analysis: SG&A Japan: Personnel and advertising expenses increased due to the consolidation of 3iQ Digital Holdings. Professional fees were recorded in “other” expense following the previous quarter, due to the acquisition of 3iQ Digital Holdings. ■ Total SG&A Quarterly SG&
Slide 19: QoQ Analysis: Operating Revenue (USD)
QoQ Comparison (3 months) Analysis: Operating Revenue (USD) US: Commissions were strong even in a low volatility market and net financial income on client cash stayed steady due to high US interest rates, achieving highest revenue for two consecutive quarters. ■ Total operating revenue after deducti
Slide 20: QoQ Analysis: SG&A (USD)
QoQ Comparison (3 months) Analysis: SG&A (USD) US: Compensation and benefits decreased primarily due to the elimination of severance payments recorded in the previous quarter for the transition to the next-generation management team. Overall expenses decreased by 4.5% QoQ, resulting in a record high
Slide 21: QoQ Analysis: Operating Revenue (Crypto)
QoQ Comparison (3 months) Analysis: Operating Revenue Crypto: IEO related revenues were recorded in “other” revenue, while marketplace trading volume and trading income decreased due to lower market volatility. ■ Total operating revenue after deducting financial expenses Quarterly total operating re
Slide 22: QoQ Analysis: SG&A (Crypto)
QoQ Comparison (3 months) Analysis: SG&A Crypto: Advertising expenses increased with the launch of the Coincheck, Inc. television advertising campaign. Professional fees related to the De-SPAC transaction increased as well. ■ Total SG&A Total SG&A +22.4％ (+453) (JPY million) *Figures in parentheses
Slide 23: Reference: Monex Securities QoQ Net Income Analysis
Reference : Monex Securities QoQ Comparison (3 months) Analysis: Net Income Monex Securities: Mutual fund balance and its related revenues increased due to progress in the alliance strategies. Expanded recurring revenues from margin and stock lending. ■ Net operating revenue (JGAAP) Net operating re
Slide 24: Reference: Monex Securities QoQ SG&A Analysis
Reference : Monex Securities QoQ Comparison (3 months) Analysis: SG&A Monex Securities: SG&A was appropriately controlled despite the progress in the alliance strategies. ■ Total SG&A (JGAAP) Quarterly SG&A Total -3.1％ (-247) *Figures in parentheses indicate the variance from the previous quarter (J
Slide 25: YoY Comparison (3 months) Consolidated Performance
YoY Comparison (3 months) Consolidated Performance FYE Mar. 2024 FYE Mar. 2025 Rate of (JPY million) 1Q 1Q Variance Reference change (Apr. 2023 – Jun. 2023) (Apr. 2024 – Jun. 2024) Total operating revenue after P26: Analysis of Japan segment deducting financial expenses and cost 20,203 16,962 -3,241
Slide 26: YoY Comparison (3 months) Segment Performance
YoY Comparison (3 months) Segment Performance Japan US Crypto Asset Asia Pacific Investment (JPY million) 2024/3 2025/3 2024/3 2025/3 2024/3 2025/3 2024/3 2025/3 2024/3 2025/3 1Q 1Q 1Q 1Q 1Q 1Q 1Q 1Q 1Q 1Q Total operating revenue after deducting Record financial expenses and cost of sales 8,976 2,30
Slide 27: YoY Analysis: Operating Revenue (Japan)
YoY Comparison (3 months) Analysis: Operating Revenue Japan: Deconsolidation of Monex Securities lightened the revenue structure since the previous quarter. Monex Securities’ business performance has been recorded as a profit of equity method investment within non-operating revenue. Total operating
Slide 28: YoY Analysis: SG&A (Japan)
YoY Comparison (3 months) Analysis: SG&A Japan: With the deconsolidation of Monex Securities, SG&A related to Monex Securities has been eliminated from the previous quarter. ■ Total SG&A SG&A Total -61.7％ (-4,552) (JPY million) *Figures in parentheses indicate the variance from the previous year (JP
Slide 29: YoY Analysis: Operating Revenue (USD)
YoY Comparison (3 months) Analysis: Operating Revenue (USD) US: Net financial income on client cash remained steady as US interest rates stayed at elevated levels. Brokerage and other commissions increased due to strong trading volume from high value customer base despite low market volatility. Tota
Slide 30: YoY Analysis: SG&A (USD)
YoY Comparison (3 months) Analysis: SG&A (USD) US: Under the strategy of focusing on active traders, overall expenses remained at an appropriate level. ■ Total SG&A Total SG&A -1.1％ (659) *Figures in parentheses indicate the variance from the previous year (USD thousand) (USD thousand) 90,000 ■ Othe
Slide 31: YoY Analysis: Operating Revenue (Crypto)
YoY Comparison (3 months) Analysis: Operating Revenue Crypto: Transaction volume increased as a result of the recovery of the crypto asset market, driving an increase in Marketplace revenues. IEO related revenues were recorded as well. ■ Total operating revenue after deducting financial expenses Tot
Slide 32: YoY Analysis: SG&A (Crypto)
YoY Comparison (3 months) Analysis: SG&A Crypto: Advertising expenses and professional fees related to the De-SPAC transaction increased. Overall expenses were appropriately controlled. ■ Total SG&A Total SG&A +55.3％ (+880) *Figures in parentheses indicate the variance from the previous year (JPY mi
Slide 33: Reference: Monex Securities YoY Net Income Analysis
Reference : Monex Securities YoY Comparison (3 months) Analysis: Net Income Monex Securities: Account transfer from AEON Bank and the expansion of periodic purchase service for mutual fund have led to a significant YoY growth in mutual fund balance by 60%. Brokerage commission from Japanese equities
Slide 34: Reference: Monex Securities YoY SG&A Analysis
Reference : Monex Securities YoY Comparison (3 months) Analysis: SG&A Monex Securities: Commissions paid related to mutual fund transaction increased in line with the progress of the alliance strategies. The number of account openings increased by approximately 65% YoY. ■ Total SG&A (JGAAP) SG&A Tot
Slide 35: Shareholder Distribution
Shareholder Distribution The year-end dividend for FYE Mar. 2024 was 15.0 yen per share. The Company also announced a share buyback of up to 5 billion yen. ◆ Dividend Per Share ◆ TSR (Total Shareholder Return : five-year basis) (JPY) 30 Monex Group, Inc.(dividend included) 25 Interim Year-end 400% T
Slide 36: Investors' Guide
Investors’ Guide Shareholders distribution Shareholders & indicators per share ◆ Our Basic Policy for Shareholders Distribution ◆ Major shareholders and shareholder breakdown (as of Mar. 31, 2024) Our basic principle is to increase our corporate value in a sustainable way Monex Group, Inc. 0.6% as w
Slide 37: III. Business Update
MONEX GROUP IT. Business Update 36
Slide 38: Monex Securities 1/2
Monex Securities 1/2 The alliance with nationwide partners and the reinforced asset management business drive rapid growth in the customer base and their assets in custody as well as steady progress of the asset gathering model. (JPY Trillion) Customer Assets at Monex Securities 15 Japanese Equities
Slide 39: Monex Securities 2/2
Monex Securities 2/2 Following the announcement of periodic purchase service using d CARD in Jul. 2024, the partnership will strive for delivering investment capability to DOCOMO economic zone. Mini app for asset building service for beginners within d-Barai app is scheduled to be launched within th
Slide 40: Monex Asset Management
Monex Asset Management Asset under management (AUM) of Robo-advisory services is reaching to ¥100B. Robo-advisor services have seen rapid increases in balances ■ Robo-advisor services Asset Under Management of Robo-advisor service and Monex Activist Fund ON COMPASS 1 Ranked No.1 in Sharpe Ratio and
Slide 41: Monex Activist Fund
Monex Activist Fund Through engagement with portfolio companies, Monex Activist Fund pursues not only its performance, but also the improvement in productivity of listed companies and the development of capital markets in Japan. Net asset value and mother fund price reached record highs in Jun. 2024
Slide 42: 3iQ Digital Holdings Inc.
3iQ Digital Holdings Inc. Acquired a Canadian crypto asset management company, 3iQ Digital Holdings Inc. Monex Group aims to capture the crypto asset management needs of institutional investors and exchanges around the world, which are expected to grow in the future. 3iQ Digital Holdings Inc. ■ Busi
Slide 43: TradeStation 1/4
TradeStation 1/4 Commissions stayed strong as trading from active customers remained steady. Brokerage commissions and other commissions Other commissions and DARTs (Equities + Options) Brokerage commission and VIX （DARTs: Thousand） （USD Million） （USD Million） Other commissions(left) DARTs (Equities
Slide 44: TradeStation 2/4
TradeStation 2/4 Net interest income from customer deposits remained strong due to high US interest rates. Interest on customer cash Interest income from customer cash deposits ($2.5 B as of the end of Jun. 2024) benefits TradeStation and is recorded as net financial income. About 54% of customer ca
Slide 45: TradeStation 3/4
TradeStation 3/4 The number of target customers* remained stable, achieving the highest revenues in this quarter. TradeStation will continue to strengthen its outbound sales team and aim to further acquire target customers. The number of target customers 12,000 Target customers 9,979 10,050 10,083 9
Slide 46: TradeStation 4/4
TradeStation 4/4 Leveraging award-winning products and services along with marketing and education, outbound sales and concierge services to attract and retain target customers. TradeStation’s value creation cycle Product & Services Award-winning sophisticated and active trader brokerage and analysi
Slide 47: Coincheck 1/5
Coincheck 1/5 Strong retail customer base has enabled the expansion and growth of the institutional business. As the corporate related business grows, more users will be connected to the Coincheck platform. Exchange/Marketplace - Maintains a solid industry position and a large retail customer base a
Slide 48: Coincheck 2/5
Coincheck 2/5 Coincheck continues to attract customers as Japan’s premier and most trusted crypto assets trading platform. Crypto asset exchange and marketplace App Downloads Coincheck started airing TV commercials on Leading market share with 20%*3 No.1 domestic market share for May 9, 2024 to acqu
Slide 49: Coincheck 3/5
Coincheck 3/5 With it’s strong reputation and large customer base, Coincheck promotes corporate services to support web3 business Coincheck for Business Services provided - IEO (Initial Exchange Offering) Support companies who want to form or expand a token economic zone. - INO （NFT to be sold for t
Slide 50: Coincheck 4/5
Coincheck 4/5 Coincheck is the leading player in the Japanese IEO market, completing the most and largest Yen value of IEO’s. Coincheck Initial Exchange Offering (IEO) The 3rd IEO – BRIL is the first IEO of a listed company’s subsidiary. 1st IEO - PLT 3rd IEO - BRIL 4th IEO (scheduled) Completed in
Slide 51: Coincheck 5/5
Coincheck 5/5 Coincheck Group (CCG)*1 is proceeding with listing procedures. Plans to become a publicly listed company on the Nasdaq in order to secure global talent and maximize business opportunities. - After the proposed business combination with a Nasdaq-listed SPAC, Thunder Bridge Capital Partn
Slide 52: New Businesses (Japan segment)
New Businesses (Japan segment) Promote new businesses based on a corporate philosophy that aims to optimize an individual's lifetime balance sheet. Human Resource Development Business Life Settlement Business Operates classrooms for STEAM education. Launched “insurance purchase” service Viling Inc.
Slide 53: ESG and Sustainability 1/2
ESG and Sustainability 1/2 Promoting sustainability management by enhancing human rights, DEI*1, and human resource development initiatives. Initiatives to strengthens human capital Initiatives in line with the Human Rights Policy and Improve ESG scores by the index by enhancing Internal Environment
Slide 54: ESG and Sustainability 2/2
ESG and Sustainability 2/2 Reviewed the materiality matrix by quantifying the impact on the Company's performance and interviewing relevant stakeholders. Annual review of materiality matrix Review Process for 2024 - The “Impact on Stakeholders” was reviewed based on the respective weights of each it
Slide 55: Appendix: Group Overview
MONEX GROUP Appendix: Group Overview 54
Slide 56: Appendix: Highlights 1Q of FYE Mar. 2025 1/3
Appendix: Highlights 1Q of FYE Mar. 2025 (3 months) 1/3 ◆Total operating revenue after deducting financial expenses and cost of sales, and quarterly profit attributable to owners of the Company Total operating revenue after deducting financial expenses and cost of sales (JPY Million) Quarterly profi
Slide 57: Appendix: Highlights 1Q of FYE Mar. 2025 2/3
Appendix: Highlights 1Q of FYE Mar. 2025 (3 months) 2/3 ◆Total operating revenue after deducting financial expenses and cost of sales, and Segment profit (JPY Million) Total operating revenue after deducting financial expenses and cost of sales Segment profit (Quarterly profit before income taxes) 1
Slide 58: Appendix: Highlights 1Q of FYE Mar. 2025 3/3
Appendix: Highlights 1Q of FYE Mar. 2025 (3 months) 3/3 ◆Total operating revenue after deducting financial expenses, and Segment profit (JPY Million) Total operating revenue after deducting financial expense Segment profit (Quarterly profit before income taxes) 400 Asia 240 263 291 227 208 Pacific 2
Slide 59: Consolidated balance sheet
Consolidated balance sheet Key points of the consolidated balance sheet of Monex Group 1. The holding company Monex Group, Inc. maintains a net cash position at the end of the current period. 2. Trust assets, which are segregated deposits received from customers and guarantee deposits received, acco
Slide 60: Corporate Governance
Corporate Governance Established global-standard corporate governance practices and emphasis on dialogue with retail/institutional investors. Adoption of “company with three committees” structure - highly effective executive management monitoring system - Adopted “company with committees” structure
Slide 61: Overview of Monex Group and Main Group Companies
Overview of Monex Group and Main Group Companies ■ Monex, Inc. (Tokyo, Japan) ■ Coincheck, Inc. (Tokyo, Japan) One of the major online brokerage firms in Japan Crypto asset Exchange/Marketplace agency that is ranked No.1 in crypto asset • President : Yuko Seimei trading app downloads in Japan for 5
Slide 62: Overview of the Group
Group Overview of the Group Listed Holding Company [ Japan Segment ] [ US Segment ] [ Crypto Asset Segment ] Online Brokerage Asset Management Crypto Asset Exchange Agency [Equity method affiliate] Monex, Inc. Monex Asset Management, Inc. TradeStation Group, Inc. Coincheck, Inc. Comprehensive invest
Slide 63: Investment Segment – Portfolio 1/4
Investment Segment – Portfolio 1/4 ◆ Monex Ventures, Inc. ◆ MONEX EDISON Investment Limited Partnership 62
Slide 64: Investment Segment – Portfolio 2/4
Investment Segment – Portfolio 2/4 ◆ MV I Investment Limited Partnership 63
Slide 65: Investment Segment – Portfolio 3/4
Investment Segment – Portfolio 3/4 ◆ MV I Investment Limited Partnership ◆ MV II Investment Limited Partnership 64
Slide 66: Investment Segment – Portfolio 4/4
Investment Segment – Portfolio 4/4 ◆ Social Impact Investment Fund 65
Slide 67: Disclaimer
Disclaimer About Coincheck Important Information About the Business Combination and Where to Find It In connection with the proposed business combination in connection with to the business combination agreement among Coincheck, Inc. (“Coincheck”), Coincheck Group B.V. (“CCG”), Thunder Bridge Capital
Slide 68: © Monex Group, Inc.
© Monex Group, Inc. www.monexgroup.jp/
Monex Group — Q1 FYE March 2025 Earnings Presentation on 6ix