Monex Group, Inc. · TSE:8698

Monex — Q1 FYE March 2016 Earnings Presentation

27 slides from Monex's earnings presentation, Jul 31, 2015

  1. Slide 1: Databook: Financial Results for 1Q of Fiscal Year Ending March 31, 2016

    July 31, 2015 (TSE 1st Section: 8698) DATABOOK Financial Results for 1Q of Fiscal Year Ending March 31, 2016 This is an English translation of Japanese presentation material prepared in connection with the disclosure of the financial results of Monex Group, Inc. It includes information derived from

  2. Slide 2: Table of Contents

    Table of Contents [Data Book] Table of Contents p. 1 1. Market & Transaction Data p. 2 - p.12 2. Financial Data p. 13 - p.26 1

  3. Slide 3: 1. Market & Transaction Data

    1. Market & Transaction Data 2. Financial Data 2

  4. Slide 4: Customers' Assets in Custody

    Market and Transaction Data (1) – Customers’ Assets in Custody (JPY million) Japan Segment U.S. Segment China Segment 5,000,000 4,000,000 3,000,000 2,000,000 1,000,000 0 As of As of As of As of As of As of As of As of As of Jun.30, 2013 Sep.30, 2013 Dec.31, 2013 Mar.31, 2014 Jun.30, 2014 Sep.30, 201

  5. Slide 5: Number of Employees

    Market and Transaction Data (2) – Number of Employees (person） Japan Segment U.S. Segment China Segment 1,200 800 400 0 As of As of As of As of As of As of As of As of As of Jun.30, 2013 Sep.30, 2013 Dec.31, 2013 Mar.31, 2014 Jun.30, 2014 Sep.30, 2014 Dec.31, 2014 Mar.31, 2015 Jun.30, 2015 (person）

  6. Slide 6: Japan Segment - Monex, Inc. (Number of accounts)

    Market and Transaction Data (3) – Japan Segment - Monex, Inc. (Number of accounts) ◆Number of total accounts & active accounts (account） Total accounts Active accounts 1,600,000 1,400,000 1,200,000 1,000,000 800,000 600,000 400,000 200,000 0 As of Jun. 30, As of Sep. 30, As of Dec. 31, As of Mar. 31

  7. Slide 7: Japan Segment - Monex, Inc. (Equities)

    Market and Transaction Data (4) Japan Segment - Monex, Inc. (Equities) ◆Market share and value of equity trading ◆ Breakdown of DARTs and market trading value Monex’s share in retail trading value of 2 major stock exchanges and (JPY 100million) its equity trading values (%) （thousand） (JPY 100millio

  8. Slide 8: Japan Segment - Monex, Inc. (Mutual Funds & Bonds)

    Market and Transaction Data (5) Japan Segment - Monex, Inc. (Mutual Funds & Bonds) ◆Mutual Funds (Sales and Balance) ◆Fixed Income Businesses (Sales of non-domestic bonds) (JPY million) Sales of Investment Trusts(no-load) (left) (JPY million) (JPY million) 70,000 Sales of Investment Trusts(load) (le

  9. Slide 9: Japan Segment - Customer distribution

    Market and Transaction Data (6) Japan Segment – Monex, Inc. (Customer distribution) ◆Active accounts by gender and age ◆Active accounts by occupation Corporate Professional Corporation executive (e.g. Doctor) All accounts Accounts opened within a year 35% 35% Homemaker Civil servant Self-employed 30

  10. Slide 10: Japan Segment - Capital Adequacy Ratio

    Market and Transaction Data (7) Japan Segment - Monex, Inc. (Capital Adequacy Ratio) ◆Capital adequacy ratio (JPY million) 50,000 500% Risk asset amount（left） Non-fixed capital （left） Capital adequacy ratio（right） 40,000 400% 30,000 300% 20,000 200% 10,000 100% 0 0% As of As of As of As of As of As

  11. Slide 11: U.S. Segment - TradeStation Group

    Market and Transaction Data (8) U.S. Segment – TradeStation Group ◆ DARTs and VIX(*) （thousand） 150 Futures DARTs(left) Options DARTs(left) Equities DARTs(left) Vix Close Avg. (right) 20 100 10 50 0 0 1Q of FYE 2Q of FYE 3Q of FYE 4Q of FYE 1Q of FYE 2Q of FYE 3Q of FYE 4Q of FYE 1Q of FYE Mar. 2014

  12. Slide 12: China Segment - Monex Boom Securities

    Market and Transaction Data (9) China Segment - Monex Boom Securities ◆ Numbers of active accounts ◆ DARTs (account) 2,000 10,000 1,500 8,000 6,000 1,000 4,000 500 2,000 0 0 As of Jun. As of Sep. As of Dec. As of Mar. As of Jun. As of Sep. As of Dec. As of Mar. As of Jun. 1Q of FYE 2Q of FYE 3Q of F

  13. Slide 13: Global FX

    Market and Transaction Data (10) Global FX ◆OTC FX business in Japan (Monex, Inc. and Monex FX, Inc.) ◆OTC FX business in U.S. (TradeStation Group) (JPY million) (JPY 100million) (USD thousand) （100mil USD） 2,000 200,000 10,000 1,000 Commissions(left) Trading revenue(left) Trading revenue(left) Trad

  14. Slide 14: 2. Financial Data

    1. Market & Transaction Data 2. Financial Data 13

  15. Slide 15: Significant impact of difference between IFRSs and JGAAP

    Significant impact of difference between IFRSs and JGAAP We have adopted IFRSs since FYE March 2013 to improve the international comparability of financial information, while we engage in business activities with a focus of 3 major locations (Japan, the U.S. and China) with a view to creating a glob

  16. Slide 16: Quarterly consolidated financial results

    Quarterly consolidated financial results (JPY million) FYE Mar. 2015 FYE Mar. 2016 1Q 2Q 3Q 4Q 1Q Commission received 6,314 7,205 8,319 8,242 8,499 Net trading income 1,244 1,175 1,968 1,854 1,813 Financial income 3,115 3,471 3,673 3,729 3,670 Other operating income 149 170 174 174 212 Total operati

  17. Slide 17: Quarterly consolidated financial results (Reclassified)

    Quarterly consolidated financial results (Reclassified) Reclassified consolidated statement of income (JPY million) FYE Mar. FYE Mar. 2015 2016 1Q 2Q 3Q 4Q 1Q Brokerage commissions 4,906 5,710 6,679 6,527 6,769 Stocks and ETFs 3,627 4,352 4,917 4,688 4,974 Options and Futures 1,269 1,350 1,759 1,839

  18. Slide 18: Quarterly consolidated financial results (SG&A)

    Quarterly consolidated financial results (SG&A) The details of SG&A in consolidated statement of income (JPY million) FYE Mar. 2015 FYE Mar. 2016 1Q 2Q 3Q 4Q 1Q Transaction-related expenses 3,006 3,220 3,520 3,490 3,522 Commissions paid 1,124 1,198 1,375 1,454 1,371 Exchange and association dues 277

  19. Slide 19: Quarterly consolidated financial results (Other income and other expenses)

    Quarterly consolidated financial results (Other income and other expenses) (JPY million) FYE Mar. FYE Mar. 2015 2016 1Q 2Q 3Q 4Q 1Q Other financial income 20 35 20 7 77 Gain on sales of investment securities - - 1 -0 - Dividends income 16 34 11 5 15 Gain or loss on Financial instruments for risk hed

  20. Slide 20: Quarterly financial results by segment

    Quarterly financial results by segment (JPY million) FYE Mar. 2014 FYE Mar. 2015 FYE Mar. 2016 4Q 1Q 2Q 3Q 4Q 1Q JPN U.S. CHN JPN U.S. CHN JPN U.S. CHN JPN U.S. CHN JPN U.S. CHN JPN U.S. CHN Commission received 4,759 2,485 99 3,922 2,337 73 4,696 2,448 84 5,304 2,949 96 5,112 3,057 99 5,394 2,975 16

  21. Slide 21: Quarterly financial results by segment (Reclassified)

    Quarterly financial results by segment (Reclassified) Reclassified statement of income (JPY million) FYE Mar. 2014 FYE Mar. 2015 FYE Mar. 2016 4Q 1Q 2Q 3Q 4Q 1Q JPN U.S. CHN JPN U.S. CHN JPN U.S. CHN JPN U.S. CHN JPN U.S. CHN JPN U.S. CHN Brokerage commissions 3,963 1,769 99 3,220 1,628 73 3,910 1,7

  22. Slide 22: Quarterly financial results by segment (SG&A)

    Quarterly financial results by segment (SG&A) The details of SG&A in statement of income (JPY million) FYE Mar. 2014 FYE Mar. 2015 FYE Mar. 2016 4Q 1Q 2Q 3Q 4Q 1Q JPN U.S. CHN JPN U.S. CHN JPN U.S. CHN JPN U.S. CHN JPN U.S. CHN JPN U.S. CHN Transaction-related 1,465 1,537 46 1,461 1,528 35 1,486 1,7

  23. Slide 23: U.S. Segment: Quarterly financial results (Reclassified) (in USD)

    U.S. Segment :Quarterly financial results (Reclassified) (in USD) Reclassified statement of income (USD thousand) FYE Mar. FYE Mar. 2015 2016 1Q 2Q 3Q 4Q 1Q Brokerage commissions 15,954 16,552 19,051 19,174 17,714 Stocks and ETFs 4,624 4,699 5,198 4,886 4,356 Options and Futures 11,330 11,854 13,853

  24. Slide 24: U.S. Segment: Quarterly financial results (SG&A) (in USD)

    U.S. Segment :Quarterly financial results (SG&A) (in USD) The details of SG&A in statement of income (USD thousand) FYE Mar. 2015 FYE Mar. 2016 1Q 2Q 3Q 4Q 1Q Transaction-related expenses 14,970 16,397 16,816 15,015 15,277 Commissions paid 8,320 8,614 9,409 9,174 8,626 Exchange and association dues

  25. Slide 25: Consolidated statement of financial position (1)

    Consolidated statement of financial position (1) ■Assets (JPY million) As of As of As of As of Mar. 31, 2015 Jun. 30, 2015 Mar. 31, 2015 Jun. 30, 2015 Cash and cash equivalents 68,540 76,497 Property and equipment 2,408 2,372 Cash segregated as deposits 525,567 561,518 Intangible assets 48,807 50,86

  26. Slide 26: Consolidated statement of financial position (2)

    Consolidated statement of financial position (2) ■Liabilities ■Equity (JPY million) As of As of As of As of Mar. 31, 2015 Jun. 30, 2015 Mar. 31, 2015 Jun. 30, 2015 Derivative liabilities 12,158 12,916 Common stock 10,394 10,394 Margin transaction liabilities 46,125 44,083 Additional-paid in capital

  27. Slide 27: Consolidated statement of financial position (3)

    Consolidated statement of financial position (3) ■Investments in securities (JPY million) As of Mar. As of Jun. measurement method Description 31, 2015 30, 2015 Investments in securities 8,176 3,839 Fair Value Through Profit or Loss Quoted prices (unadjusted) in active markets for identical Akatsuki

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