Monex Group, Inc. · TSE:8698
Monex — SPAC Merger (May 2024)
70 slides from Monex's SPAC merger presentation, May 1, 2024
Slide 1: Financial Results for Fiscal Year Ending March 31, 2024
Financial Results for Fiscal Year Ending March 31, 2024 April 25, 2024 Monex Group TSE Prime : 8698
Slide 2: Corporate Philosophy
1 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 of managing
Slide 3: Disclaimer and Table of Contents
This is an English translation of Japanese presentation materials prepared in connection with the disclosure of the financial results of Monex Group, Inc. It includes information derived from the consolidated financial statements of Monex Group, Inc. which are prepared in accordance with Internation
Slide 4: I. Highlights
MONEX GROUP I. Highlights
Slide 5: Strategy Overview of Monex Group
Strategy Overview of Monex Group While promoting the growth strategies of each group company, Monex Group aims to optimize its business portfolio and further enhance enterprise value by investing in new growth areas. Niche Strategy Focus on active traders Existing Businesses Contributes to steady re
Slide 6: Strategy Overview of Monex Group
Strategy Overview of Monex Group Monex Securities has taken advantage of the capital and business alliance with NTT DOCOMO to capture opportunities for leaping growth. Monex Group aims to create stable growth in Earnings Per Share through implementing growth strategies at each operating company and
Slide 7: Consolidated Profit Attributable to Owners of the Company
1,176 1,242 1,361 1,103 1,119 (576) (53) (272) 895 (112) 396 1,952 828 364 1,209 862 684 (741) 115 198 102 21,204 475 (2,000) (1,000) 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 3Q of FYE Mar. 2023 4Q of FYE Mar. 2023 (95) 1Q of FYE Mar. 2024 2Q of FYE Mar. 2024 3Q of FYE Mar. 2024 4Q of FYE M
Slide 8: Business Performance of the US Segment
Business Performance of the US Segment Transaction related revenue increased and the gains on management of cash deposits remained strong due to high interest rate. Quarterly revenue achieved its record high in USD as well as after conversion to JPY. Quarterly Revenue of the US Segment (USD Million)
Slide 9: Business Performance of the Crypto Asset Segment
Business Performance of the Crypto Asset Segment The crypto asset market has become more active in recent months with positive news. These industry tailwinds have resulted in a significant increase in financial performance for the Crypto Asset segment. (JPY Million) (JPY Million) 0 500 1,000 1,500 2
Slide 10: Reference: Business Performance of Monex Securities (JGAAP)
Reference : Business Performance of Monex Securities (JGAAP) Revenues increased significantly due to growth in brokerage commissions and mutual fund related revenues, reflecting the brisk Japanese stock market. Diverse product offerings generate complementary revenues and stable profits even in vari
Slide 11: Acquisition of Shares of 3iQ Digital Holdings Inc.
Acquisition of Shares of 3iQ Digital Holdings Inc. 10 Acquired a Canadian crypto asset management company, 3iQ Digital Holdings Inc. (together with its subsidiaries “3iQ Group”.) Monex Group aims to capture the crypto asset management needs of institutional investors and exchanges around the world,
Slide 12: II. Consolidated Performance
Ⅱ . Consolidated Performance 11
Slide 13: Highlights 4Q of FYE Mar. 2024 (3 months)
Highlights 4Q of FYE Mar. 2024 (3 months) 12 Monex Securities and TradeStation generated favorable profit and Coincheck increased its revenue due to the recovery of crypto market. Recorded gains associated with the capital and business alliance with NTT DOCOMO, resulting in a consolidated quarterly
Slide 14: QoQ Comparison (3 months) Consolidated Performance
QoQ Comparison (3 months) Consolidated Performance 13 Reference Rate of change Variance FYE Mar. 2024 4Q (Jan. 2024 – Mar. 2024) FYE Mar. 2024 3Q (Oct. 2023 – Dec. 2023) (JPY million) P15: Analysis of Japan segment P17: Analysis of US segment (USD) P19: Analysis of Crypto Asset segment - 18% - 3,933
Slide 15: QoQ Comparison (3 months) Segment Performance
QoQ Comparison (3 months) Segment Performance 14 2024/3 2024/3 2024/3 2024/3 2024/3 2024/3 2024/3 2024/3 2024/3 2024/3 (JPY million) 4Q 3Q 4Q 3Q 4Q 3Q 4Q 3Q 4Q 3Q - 26 - 38 263 208 4,420 2,214 Record 10,946 10,438 2,062 9,029 Total operating revenue after deducting financial expenses and cost of sal
Slide 16: QoQ Analysis: Operating Revenue (Japan)
QoQ Comparison (3 months) Analysis: Operating Revenue 15 Japan: Monex Securities is deconsolidated from this quarter. Going forward, the Japan segment revenue will primarily consists of fund management fees from Monex Asset Management and business support fees from group companies, etc. ■ Total oper
Slide 17: QoQ Analysis: SG&A (Japan)
QoQ Comparison (3 months) Analysis: SG&A 16 ■ Other ʤ +652 ʥ * ■ Advertising expenses ʤ - 571 ʥ ■ Communication, freight and information expenses ( - 443) ■ Commissions paid, exchange and association dues ( - 1,197) ■ Compensation and benefits ( - 1,042) ■ System related expenses ( - 2,587) Quarterl
Slide 18: QoQ Analysis: Operating Revenue (USD)
QoQ Comparison (3 months) Analysis: Operating Revenue (USD) 17 US: Brokerage and other commissions increased and net financial income on client cash remained steady as US interest rates stayed at elevated levels, achieving highest revenue ever. Quarterly total operating revenue after deducting finan
Slide 19: QoQ Analysis: SG&A (USD)
QoQ Comparison (3 months) Analysis: SG&A (USD) US: Information expenses decreased due to new futures market data billing reducing expenses by $2.1M in 4Q and the absence of one - time cost recorded in 3Q. Compensation and benefits increased primarily due to severance payments for the transition to t
Slide 20: QoQ Analysis: Operating Revenue (Crypto)
QoQ Comparison (3 months) Analysis: Operating Revenue Crypto: The rebound in crypto asset values has led to an drastic increase in volume and net trading income. Quarterly total operating revenue after deducting financial expenses and cost of sales +99.6% ʤ +2,206 ʥ *Figures in parentheses indicate
Slide 21: QoQ Analysis: SG&A (Crypto)
QoQ Comparison (3 months) Analysis: SG&A Crypto: The management has decreased fixed expenses and achieved a leaner cost structure to generate incremental profitability as the crypto market improves. Total SG&A +23.0 ˁ (+378) * Professional fees related to De - SPAC: ¥216M (+54) ■ Other (+152) * ■ Ad
Slide 22: Reference: Monex Securities QoQ Net Income
Reference : Monex Securities QoQ Comparison (3 months) Analysis: Net Income 21 Monex Securities: Brokerage commissions and net margin income increased due to the active Japanese stock market. Increase in mutual fund balance and its related revenues was accelerated by the transfer of accounts from AE
Slide 23: Reference: Monex Securities QoQ SG&A
Reference : Monex Securities QoQ Comparison (3 months) Analysis: SG&A 22 ■ Other ʤ - 377 ʥ ■ Advertising expenses ʤ +253 ʥ ■ Communication, freight and information expenses ( - 6) ■ Commissions paid, exchange and association dues (+498) ■ Compensation and benefits (+34) ■ System related expenses (+4
Slide 24: Highlights of FYE Mar. 2024 (12 months)
Highlights of FYE Mar. 2024 (12 months) 23 The major group companies expanded its revenue bases due to market recovery and successful implementation of business strategies . Recorded one - time gains associated with the capital and business alliance with NTT DOCOMO, resulting in a consolidated profi
Slide 25: YoY Comparison (12 months) Consolidated Performance
YoY Comparison (12 months) Consolidated Performance 24 Reference Rate of change Variance FYE Mar. 2024 (Apr. 2023 – Mar. 2024) FYE Mar. 2023 (Apr. 2022 – Mar. 2023) (JPY million) P26: Analysis of Japan segment P28: Analysis of US segment (USD) P30: Analysis of Crypto Asset segment +9% +6,440 79,756
Slide 26: YoY Comparison Segment Performance
25 2024/3 2023/3 2024/3 2023/3 2024/3 2023/3 2024/3 2023/3 2024/3 2023/3 (JPY million) 104 308 939 1,053 9,231 7,369 Record 41,621 34,503 28,989 30,940 Total operating revenue after deducting financial expenses and cost of sales 108 91 1,057 1,205 6,758 8,090 35,352 33,176 25,461 27,145 SG&A - 3 218
Slide 27: YoY Analysis: Operating Revenue (Japan)
YoY Comparison (12 months) Analysis: Operating Revenue 26 Japan: Market conditions were brisk toward the end of the fiscal year, generating increased fund performance fee in mutual fund related revenues. Monex Securities’ business performance is recorded as profit of equity method investment from th
Slide 28: YoY Analysis: SG&A (Japan)
YoY Comparison (12 months) Analysis: SG&A 27 Japan: With the deconsolidation of Monex Securities in Jan 2024, SG&A related to Monex Securities has been eliminated from the 4Q of FYE Mar. 2024. SG&A Total - 6.2 ˁ ( - 1,685) ■ Other ʤ +1,011 ʥ * ■ Advertising expenses ʤ - 177 ʥ ■ Communication, freigh
Slide 29: YoY Analysis: Operating Revenue (USD)
US: Total revenue increased due to a significant increase in net financial income driven by higher interest rates and strong trading volume by active traders. Annual revenue was the highest ever. * Average VIX ʁ 24.5→ 15.1 ( - 9.4 ppt ) DARTs YoY : 213,933 → 208,610( - 3%) DARTs YoY(Equities) ʁ - 3
Slide 30: YoY Analysis: SG&A (USD)
YoY Comparison (12 months) Analysis: SG&A (USD) Total SG&A - 0.7 ˁ ( - 1,734) ■ Other ( - 540) ■ Advertising expenses ( - 11,367) ■ Amortization and depreciation ( - 607) ■ Communication, freight and information expenses (+1,988) ■ Commissions paid and association dues (+4,689) ■ Compensation and be
Slide 31: YoY Analysis: Operating Revenue (Crypto)
YoY Comparison (12 months) Analysis: Operating Revenue Crypto: The rebound in crypto asset values has led to an increase in volume and net trading income. * ■ Total operating revenue after deducting financial expenses and cost of sales (JPY million) ■ Other ( - 951) ■ Net trading income (+2,813) * T
Slide 32: YoY Analysis: SG&A (Crypto)
YoY Comparison (12 months) Analysis: SG&A Crypto: The flexible expense structure, focused on variable cost management, has helped to generate incremental profitability as the crypto market improves. Total SG&A - 16.5 ˁ ( - 1,332) ■ Other ( - 536) * ■ Advertising expenses ( - 685) ■ Communication, fr
Slide 33: Reference: Monex Securities YoY Net Income
Reference : Monex Securities YoY Comparison (12 months) Analysis: Net Income 32 Monex Securities: All revenue streams increased due to the brisk Japanese stock market. Alliances with partner companies have been also successful, leading to a significant growth in mutual fund related revenues. Net ope
Slide 34: Reference: Monex Securities YoY SG&A
Reference : Monex Securities YoY Comparison (12 months) Analysis: SG&A 33 Monex Securities: Mutual fund related commissions increased due to the full - fledged alliance with AEON Bank. Personnel expenses rose due to base - pay increases. SG&A Total +12.0 ˁ (+3,163) ■ Other ʤ +3 ʥ ■ Advertising expen
Slide 35: Shareholder Distribution
Shareholder Distribution The year - end dividend for this fiscal year is scheduled to be 15.0 yen per share. The Company will keep committed to improving TSR. ◆ Dividend Per Share (JPY) ◆ Return to Shareholders 34 2.6 3.7 2.7 2.7 4.5 7.6 7.8 8 2.6 6.3 2.7 3.2 7.5 7.7 7.9 15.0 30 25 20 15 10 5 0 FYE
Slide 36: Investors' Guide: Shareholders Distribution
Other institutions 3.5% Financial institution s 14.6% Individuals, etc. 25.4% Foreign institutions, etc. 22.7% Shizuoka Financial Group, Inc. 20.7% Investors’ Guide Shareholders distribution ◆ Our basic policy for shareholders distribution Our basic principle is to increase our corporate value in a
Slide 37: III. Business Update
MONEX GROUP Il. Business Update 36
Slide 38: Monex Securities 1/3
0 3 6 9 12 2014/3 2015/3 2016/3 2017/3 2018/3 2019/3 2020/3 2021/3 2022/3 2023/3 2024/3 Customer Assets at Monex Securities Japanese Equities Others Foreign Equities Mutual Fund Monex Securities 1/3 The alliance with nationwide partners and the reinforced asset management business drive rapid growth
Slide 39: Monex Securities 2/3
Monex Securities 2/3 Through the collaboration of NTT DOCOMO's service platforms and customer base with Monex Securities' products and services, we aim to integrate financial investment into people’s daily lives. Creating online leads to attract customers from the d - Barai app. Redirecting customer
Slide 40: Monex Securities 3/3
Monex Securities 3/3 Customers of the partner companies continues to open accounts at Monex Securities. The percentage of NISA accounts *1 opened simultaneously with brokerage account is high, contributing to attracting a new customer base. 39 Mutual fund accounts *3 + 340 K NISA accounts *3 + 170 K
Slide 41: Monex Asset Management
0 20 40 60 80 100 120 0 0 0 0 0 0 Jun - 21 Sep - 21 Dec - 21 Mar - 22 Jun - 22 Sep - 22 Dec - 22 Mar - 23 Jun - 23 Sep - 23 Dec - 23 2024/4/22 Monex Asset Management Asset under management (AUM) of Monex Asset Management exceeded ¥550B. Robo - advisor services and activist funds have seen significan
Slide 42: 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 . Monex Activist Fund (MAF) ■ TAISHO PHARMACEUTICAL HOLDINGS CO., LTD .
Slide 43: TradeStation 1/4
Commissions stayed strong as trading from active customers remained steady. Brokerage commissions and other commissions ʤ USD Million ʥ TradeStation 1/4 ʤ DARTs: Thousand ʥ ʤ USD Million ʥ 0 5 10 15 20 25 30 0 10 20 30 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Brokerage commission and VIX Equities Options Futures Cry
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 ($2.4 B as of the end of Mar. 2024) belongs to TradeStation and is recorded as net financial income. About 55% of customer
Slide 45: TradeStation 3/4
TradeStation 3/4 44 *1 Sophisticated and active customers whose monthly revenue is $500 or more in any month of each quarter (3 months) *2 Sophisticated and active customers whose monthly revenue is $500 or more in any month in a rolling 12 - month period 8,192 8,974 9,816 8,000 6,725 9,979 10,050 9
Slide 46: TradeStation 4/4
TradeStation 4/4 45 ʤ USD Million ʥ TradeStation captures active traders through organic marketing and third - party referral partners. Customers Revenue * by Funnel Source ʀ Third - party referral customers revenue as a percentage of total revenue approximates 32%. ʀ Focus on acquiring high value t
Slide 47: Coincheck 1/5
Coincheck 1/5 *1 Initial Exchange Offering *2 Non Fungible Token 46 Strong retail customer base has enabled the expansion and growth of the institutional business. As the institutional business grows, more users will be connected to the Coincheck platform. Exchange/Marketplace - Maintains a solid in
Slide 48: Coincheck 2/5
Coincheck 2/5 Coincheck is attracting customers as the Japan’s premier and most trusted crypto assets trading platform. Crypto asset exchange and marketplace *1 Among Japanese crypto asset exchange apps. Term: 2019 - 2023. Data source: AppTweak *2 March. 31, 2024 *3 Monthly crypto asset trading stat
Slide 49: Coincheck 3/5
Coincheck 3/5 Based on a strong reputation and large customer base, Coincheck supports product development that diversifies its earnings. Coincheck Initial Exchange Offering (IEO) Coincheck is the leading player in the Japanese IEO market, having completed the largest number of IEOs. 1st IEO - PLT 3
Slide 50: Coincheck 4/5
Coincheck 4/5 Coincheck is supporting the blockchain community through the introduction of Coincheck INO. INO (NFT to be sold for the first time) ʀ Coincheck started “ Coincheck INO ,” NFT collections to be sold for the first time. ʀ Coincheck handled the 3rd INO “ De:Lithe Last Memories Doll NFT,”
Slide 51: Coincheck 5/5
Coincheck 5/5 50 *1 Coincheck Group will be the holding company for Coincheck, Inc. *2 Extension of the termination date of Business Combination Agreement : https:// www.monexgroup.jp/en/news_release/irnews/auto_20230623509260/pdfFile.pdf *3 Business Combination Agreement ʁ https:// www.monexgroup.j
Slide 52: New Businesses (Japan segment)
New Businesses (Japan segment) 51 Viling, Inc. operates classrooms to offer STEAM education STEAM Education Business Promote new businesses based on a corporate philosophy that aims to optimize an individual's lifetime balance sheet. STEAM / Bilingual Education Business Genome Platform Business New
Slide 53: ESG and Sustainability
ESG and Sustainability Promoting sustainability management by enhancing human rights, DEI *1 , and human resource development initiatives. Initiatives to strengthens human capital Creating a work environment in which officers and employees can maximize their abilities • Human rights: Established a c
Slide 54: Appendix: Group Overview
MONEX GROUP Appendix: Group Overview 53
Slide 55: Appendix: Highlights 4Q of FYE Mar. 2024 1/3
Appendix: Highlights 4Q of FYE Mar. 2024 (3 months) 1/3 54 Japan Consolidated ◆ Total operating revenue after deducting financial expenses and cost of sales, and Segment profit ◆ Total operating revenue after deducting financial expenses and cost of sales, and quarterly profit attributable to owners
Slide 56: Appendix: Highlights 4Q of FYE Mar. 2024 2/3
Appendix: Highlights 4Q of FYE Mar. 2024 (3 months) 2/3 Crypto Asset US ◆ Total operating revenue after deducting financial expenses and cost of sales, and Segment profit (JPY Million) (JPY Million) 9,675 9,796 10,440 10,438 10,946 1,862 1,374 1,255 1,412 1,633 12,000 8,000 4,000 0 - 4,000 2023/3 4Q
Slide 57: Appendix: Highlights 4Q of FYE Mar. 2024 3/3
Appendix: Highlights 4Q of FYE Mar. 2024 (3 months) 3/3 Investment Asia Pacific ◆ Total operating revenue after deducting financial expenses, and Segment profit (JPY Million) (JPY Million) 248 227 240 208 263 - 30 - 45 7 - 38 - 16 800 600 400 200 0 - 200 2023/3 4Q 2024/3 1Q 2024/3 2Q 2024/3 3Q 2024/
Slide 58: Appendix: Highlights FYE Mar. 2024 (12 months) 1/3
Appendix: Highlights FYE Mar. 2024 (12 months) 1/3 Japan ◆ Total operating revenue after deducting financial expenses and cost of sales, and Segment profit Pre - tax income 47,170 ◆ Total operating revenue after deducting financial expenses and cost of sales, and profit attributable to owners of the
Slide 59: Appendix: Highlights FYE Mar. 2024 (12 months) 2/3
Appendix: Highlights FYE Mar. 2024 (12 months) 2/3 Crypto Asset (JPY million) (JPY million) US ◆ Total operating revenue after deducting financial expenses and cost of sales, and Segment profit 19,887 22,958 23,579 34,503 41,621 1,763 3,200 - 5,557 - 227 5,674 45,000 35,000 25,000 15,000 5,000 - 5,0
Slide 60: Appendix: Highlights FYE Mar. 2024 (12 months) 3/3
Appendix: Highlights FYE Mar. 2024 (12 months) 3/3 Investment Asia Pacific ◆ Total operating revenue after deducting financial expenses and cost of sales, and Segment profit (JPY million) (JPY million) 634 1,222 1,053 939 - 230 519 171 - 158 - 91 2,000 1,500 1,000 500 0 - 500 2020/3 2021/3 2022/3 20
Slide 61: Consolidated balance sheet
Consolidated balance sheet As of Mar. 31, 2024 60 * Property and equipment +Intangible assets + Equity method investments + Investments in securities Level 3 (unlisted stocks, etc.) Key points of the consolidated balance sheet of Monex Group 1. The holding company Monex Group, Inc. has no net debt a
Slide 62: 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” structur
Slide 63: Monex, Inc. and TradeStation Group overview
■ Monex, Inc. (Tokyo, Japan) One of the major online brokerage firms in Japan • President : Yuko Seimei • Founded in 1999 • Aims to provide retail investors the level of creative products and services offered to institutional investors • Products and services: Equities (Japan, US, China), futures an
Slide 64: Overview of the Group
Group Overview of the Group Online Brokerage Monex Boom Securities (H.K.) Limited (HK) Online Brokerage TradeStation Securities, Inc. Brokerage firm catering to active traders (US) TradeStation Group, Inc. Intermediate Holding Company (US) TradeStation International Ltd (UK) Online Brokerage Listed
Slide 65: Investment Segment – Portfolio 1/4
Investment Segment – Portfolio 1/4 ◆ Monex Ventures, Inc. 64 ◆ MONEX EDISON Investment Limited Partnership
Slide 66: Investment Segment – Portfolio 2/4
Investment Segment – Portfolio 2/4 65 ◆ MV I Investment Limited Partnership
Slide 67: Investment Segment – Portfolio 3/4
Investment Segment – Portfolio 3/4 ◆ MV II Investment Limited Partnership 66 ◆ MV I Investment Limited Partnership
Slide 68: Investment Segment – Portfolio 4/4
Investment Segment – Portfolio 4/4 ◆ Social Impact Investment Fund 67
Slide 69: Disclaimer About Coincheck
Disclaimer 68 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 Capi
Slide 70: © Monex Group, Inc.
© Monex Group, Inc. www.monexgroup.jp/