Monex Group, Inc. · TSE:8698
Monex — Q1 FY March 2020 Earnings Presentation
38 slides from Monex's earnings presentation, Jul 26, 2019
Slide 1: Databook: Financial Results for 1Q of Fiscal Year Ending March 31, 2020
July 26, 2019 (TSE 1st Section: 8698) DATABOOK Financial Results for 1Q of Fiscal Year Ending March 31, 2020 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
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.37 1
Slide 3: 1. Market & Transaction Data
1. Market & Transaction Data 2. Financial Data 2
Slide 4: Market and Transaction Data (1) – Customers' Assets in Custody
Market and Transaction Data (1) – Customers’ Assets in Custody (JPY million) Japan Segment U.S. Segment Asia-Pacific Segment Crypto Asset Segment 6,000,000 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, 2017 Sep.30, 2017 Dec.31, 2017
Slide 5: Market and Transaction Data (2) – Number of Employees
Market and Transaction Data (2) – Number of Employees (person） Japan Segment U.S. Segment Asia-Pacific Segment Crypto Asset Segment 1,000 500 0 As of As of As of As of As of As of As of As of As of Jun.30, 2017 Sep.30, 2017 Dec.31, 2017 Mar.31, 2018 Jun.30, 2018 Sep.30, 2018 Dec.30, 2018 Mar.31, 201
Slide 6: Market and Transaction Data (3) – 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 2,000,000 1,500,000 1,000,000 500,000 0 As of Jun. 30, As of Sep. 30, As of Dec. 31, As of Mar. 31, As of Jun. 30, As of Sep. 30, As
Slide 7: Market and Transaction Data (4) Japan Segment - Monex, Inc. (Equities and ETFs)
Market and Transaction Data (4) Japan Segment - Monex, Inc. (Equities and ETFs ) ◆Market share and value of equity trading ◆ Monex’s cash & margin trading value and margin balance Monex’s share in retail trading value of 2 major stock exchanges and (JPY 100million) its equity trading values (%) Cash
Slide 8: Market and Transaction Data (5) 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
Slide 9: Market and Transaction Data (6) Japan Segment - Monex, Inc. (FX)
Market and Transaction Data (6) Japan Segment - Monex, Inc. (FX) ◆OTC FX business (JPY million) (JPY 100million) 1,500 200,000 FX revenue (left) Trading value (right) 150,000 1,000 100,000 500 50,000 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. 2
Slide 10: Market and Transaction Data (7) Japan Segment – Monex, Inc. (Customer distribution)
Market and Transaction Data (7) Japan Segment – Monex, Inc. (Customer distribution) ◆Active accounts by gender and age ◆Active accounts by occupation Corporate Professional Corporation executive (e.g. Doctor) 35% All accounts 35% Accounts opened within a year 30% 30% Homemaker Civil servant Self-emp
Slide 11: Market and Transaction Data (8) Japan Segment - Monex, Inc. (Capital Adequacy Ratio)
Market and Transaction Data (8) 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 A
Slide 12: Market and Transaction Data (9) U.S. Segment – TradeStation Group
Market and Transaction Data (9) U.S. Segment – TradeStation Group ◆ Numbers of active accounts ◆ DARTs and VIX(*1) （thousand） (account) Futures DARTs (left) Options DARTs (left) 100,000 100 30 Equities DARTs (left) Vix Close Avg. (right) 90,000 80,000 70,000 20 60,000 50,000 50 40,000 10 30,000 20,0
Slide 13: Market and Transaction Data (10) Asia-Pacific Segment
Market and Transaction Data (10) Asia-Pacific Segment Monex Boom Securities+Monex Securities Australia ◆ Numbers of accounts with balances ◆ DARTs (account) 3,000 14,000 12,000 10,000 2,000 8,000 6,000 1,000 4,000 2,000 0 0 As o f Jun. As o f Sep. As o f Dec. As o f Mar. As o f Jun. As o f Sep. As o
Slide 14: 2. Financial Data
1. Market & Transaction Data 2. Financial Data 13
Slide 15: Introduction
Introduction 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 AP(*) with a view to creating a global online financial group ■ Consolidated fina
Slide 16: Consolidated financial results
Consolidated financial results (JPY million) 1Q FYE Mar. 1Q FYE Mar. Variance Change 2019 2020 Commission received 6,756 5,721 -1,035 -15.3% Net trading income 1,791 2,304 513 28.6% Financial income 4,889 4,930 41 0.8% Other operating income 175 198 22 12.7% Total operating revenue 13,612 13,153 -45
Slide 17: Consolidated financial results (Reclassified)
Consolidated financial results (Reclassified) Reclassified consolidated statement of income (JPY million) 1Q FYE Mar. 2019 1Q FYE Mar. 2020 Variance Change Brokerage commissions 5,134 4,341 -793 -15.4% Stocks and ETFs 3,364 2,575 -789 -23.4% Options and Futures 1,768 1,737 -32 -1.8% Cryptocurrency 1
Slide 18: Consolidated financial results (SG&A)
Consolidated financial results (SG&A) The details of SG&A in consolidated statement of income (JPY million) 1Q FYE Mar. 2019 1Q FYE Mar. 2020 Variance Change Transaction-related expenses 3,157 2,881 -276 -8.7% Commissions paid 1,255 1,160 -95 -7.6% Exchange and association dues 199 179 -20 -10.0% Co
Slide 19: Quarterly consolidated financial results (Reclassified)
Quarterly consolidated financial results (Reclassified) Reclassified consolidated statement of income (JPY million) FYE Mar. 2019 FYE Mar. 2020 1Q 2Q 3Q 4Q 1Q Brokerage commissions 5,134 4,720 5,332 4,278 4,341 Stocks and ETFs 3,364 3,130 3,399 2,716 2,575 Options and Futures 1,768 1,589 1,932 1,561
Slide 20: 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. 2019 FYE Mar. 2020 1Q 2Q 3Q 4Q 1Q Transaction-related expenses 3,157 2,810 3,000 3,085 2,881 Commissions paid 1,255 1,054 1,244 1,055 1,160 Exchange and association 199 186
Slide 21: Quarterly consolidated financial results (Other income and other expenses)
Quarterly consolidated financial results (Other income and other expenses) (JPY million) FYE Mar. 2019 FYE Mar. 2020 1Q 2Q 3Q 4Q 1Q Other financial income 140 187 284 541 30 Gain on valuation of investments in securities 34 21 -31 13 16 Gain on sales of investments in securities - 0 - -0 - Dividends
Slide 22: Quarterly financial results by segment (Reclassified) (Japan, the US and Asia-Pacific)
Quarterly financial results by segment (Reclassified) (Japan, the US and Asia- Pacific) Reclassified statement of income (JPY million) FYE Mar. 2019 FYE Mar. 2020 1Q 2Q 3Q 4Q 1Q JPN US AP JPN US AP JPN US AP JPN US AP JPN US AP Brokerage commissions 2,858 2,217 96 2,652 1,996 113 2,928 2,362 90 2,21
Slide 23: Quarterly financial results by segment (Reclassified)(Crypto Asset Segment, Investment Segment)
Quarterly financial results by segment (Reclassified)(Crypto Asset Segment, Investment Segment) Reclassified statement of income (JPY million) FYE Mar. 2019 FYE Mar. 2020 1Q 2Q 3Q 4Q 1Q Crypto Asset Investment Crypto Asset Investment Crypto Asset Investment Crypto Asset Investment Crypto Asset Inves
Slide 24: Quarterly financial results by segment (SG&A)(Japan, the US and Asia-Pacific)
Quarterly financial results by segment (SG&A)(Japan, the US and Asia-Pacific) The details of SG&A in statement of income (JPY million) FYE Mar. 2019 FYE Mar. 2020 1Q 2Q 3Q 4Q 1Q JPN US AP JPN US AP JPN US AP JPN US AP JPN US AP Transaction-related expenses 1,371 1,615 61 1,191 1,455 69 1,292 1,530 6
Slide 25: Quarterly financial results by segment (SG&A)(Crypto Asset Segment, Investment Segment)
Quarterly financial results by segment (SG&A)(Crypto Asset Segment, Investment Segment) The details of SG&A in statement of income (JPY million) FYE Mar. 2019 FYE Mar. 2020 1Q 2Q 3Q 4Q 1Q Crypto Asset Investment Crypto Asset Investment Crypto Asset Investment Crypto Asset Investment Crypto Asset Inv
Slide 26: Quarterly financial results by segment (Other income and other expenses)
Quarterly financial results by segment (Other income and other expenses) ( Japan, the US and Asia-Pacific) (JPY million) FYE Mar. 2019 FYE Mar. 2020 1Q 2Q 3Q 4Q 1Q JPN US AP JPN US AP JPN US AP JPN US AP JPN US AP Gain on valuation of investments in securities 34 - - 21 - - -31 - - 13 - - 16 - - Gai
Slide 27: Quarterly financial results by segment (Other income and other expenses) (Crypto Asset, Investment)
Quarterly financial results by segment (Other income and other expenses) (Crypto Asset Segment, Investment Segment) (JPY million) FYE Mar. 2019 FYE Mar. 2020 1Q 2Q 3Q 4Q 1Q Crypto Invest Crypto Invest Crypto Invest Crypto Invest Crypto Invest Asset ment Asset ment Asset ment Asset ment Asset ment Ga
Slide 28: US Segment: Quarterly financial results (Reclassified) (in USD)
US Segment :Quarterly financial results (Reclassified) (in USD) Reclassified statement of income (USD thousand) FYE Mar. 2019 FYE Mar. 2020 1Q 2Q 3Q 4Q 1Q Brokerage commissions 20,377 17,834 21,099 18,100 19,477 Stocks and ETFs 4,731 4,258 4,813 4,556 4,248 Options and Futures 15,646 13,575 16,286 1
Slide 29: US Segment: Quarterly financial results (SG&A) (in USD)
US Segment :Quarterly financial results (SG&A) (in USD) The details of SG&A in statement of income (USD thousand) FYE Mar. 2019 FYE Mar. 2020 1Q 2Q 3Q 4Q 1Q Transaction-related expenses 14,849 12,997 13,649 13,822 13,458 Commissions paid 7,929 6,236 7,787 6,301 7,444 Exchange and association dues 25
Slide 30: Financial results by consolidated and segment
Financial results by consolidated and segment (JPY million) FYE Mar. 2018 FYE Mar. 2019 Variance Cons.* JPN US AP Cons. JPN US AP Cons. JPN US AP Commission received 29,196 16,968 11,858 557 25,741 13,301 12,014 406 -3,455 -3,667 156 -151 Net trading income 3,865 3,865 - 0 6,461 4,535 - -3 2,596 670
Slide 31: Financial results by consolidated and segment
Financial results by consolidated and segment (JPY million) FYE Mar. 2018 FYE Mar. 2019 Variance Crypto Asset Investment Crypto Asset Investment Crypto Asset Investment Commission received - - 186 - 186 - Net trading income - - 1,929 - 1,929 - Financial income - 2,772 - 414 - -2,357 Sales - - - - -
Slide 32: Financial results by consolidated and segment (Reclassified)
Financial results by consolidated and segment(Reclassified) (JPY million) FYE Mar. 2018 FYE Mar. 2019 Variance Cons. * JPN US AP Cons. JPN US AP Cons. JPN US AP Brokerage commissions 22,540 14,082 8,091 554 19,463 10,650 8,573 404 -3,077 -3,432 481 -150 Stocks and ETFs 15,974 13,733 1,874 554 12,610
Slide 33: Financial results by consolidated and segment (Reclassified)
Financial results by consolidated and segment(Reclassified) (JPY million) FYE Mar. 2018 FYE Mar. 2019 Variance Crypto Asset Investment Crypto Asset Investment Crypto Asset Investment Brokerage commissions - - 3 - 3 - Stocks and ETFs - - - - - - Options and Futures - - - - - - Cryptocurrency - - 3 -
Slide 34: Financial results by consolidated and segment (SG&A)
Financial results by consolidated and segment(SG&A) (JPY million) FYE Mar. 2018 FYE Mar. 2019 Variance Cons.* JPN US AP Cons. JPN US AP Cons. JPN US AP Transaction-related expenses 11,963 5,787 6,043 332 12,051 5,135 6,126 268 88 -652 83 -64 Commissions paid 4,125 1,398 2,842 85 4,609 1,414 3,129 43
Slide 35: Financial results by consolidated and segment (SG&A)
Financial results by consolidated and segment(SG&A) (JPY million) FYE Mar. 2018 FYE Mar. 2019 Variance Crypto Asset Investment Crypto Asset Investment Crypto Asset Investment Transaction-related expenses - 11 709 5 709 -6 Commissions paid - 9 213 2 213 -7 Exchange and association dues - - - - - - Co
Slide 36: Consolidated statement of financial position (1) Assets
Consolidated statement of financial position (1) ■Assets (JPY million) As of As of As of As of Mar. 31, 2019 Jun. 30, 2019 Mar. 31, 2019 Jun. 30, 2019 Cash and cash equivalents 154,146 161,071 Property and equipment 2,456 5,315 Cash segregated as deposits 566,220 563,762 Intangible assets 47,698 46,
Slide 37: Consolidated statement of financial position (2) Liabilities, Equity
Consolidated statement of financial position (2) ■Liabilities ■Equity (JPY million) As of As of As of As of Mar. 31, 2019 Jun. 30, 2019 Mar. 31, 2019 Jun. 30, 2019 Derivative liabilities 4,312 3,822 Common stock 10,394 10,394 Margin transaction liabilities 32,793 30,533 Additional-paid in capital 40
Slide 38: Consolidated statement of financial position (3) Investments in securities
Consolidated statement of financial position (3) ■Investments in securities (JPY million) As of As of Measurement method Description Mar. 31, 2019 Jun. 30, 2019 Investments in securities 3,914 4,322 Fair Value Through Profit or Loss (FVTPL) Quoted prices (unadjusted) in active markets for identical