Monex Group, Inc. · TSE:8698

Monex — SPAC Merger (May 2023)

30 slides from Monex's SPAC merger presentation, May 2, 2023

  1. Slide 1: Financial Results for Fiscal Year Ending March 31, 2023

    Financial Results for Fiscal Year Ending March 31, 2023 April 27, 202 3 Monex Group TSE Prime : 8698

  2. Slide 2: I. Highlights

    MONEX GROUP I. Highlights

  3. Slide 3: Financial Interest Impact and Advertising Expenses

    Financial Interest Impact and A dvertising Expenses Advertising expenses The US Segment curbed advertising expenses due to a strategy shift from 2Q. The Crypto Asset Segment also made significant reductions in line with the market environment, while being conscious of maintaining the customer base.

  4. Slide 4: Consolidated Pre-tax Income (QoQ)

    Consolidated Pre - tax Income ( QoQ ) Quarterly consolidated pre - tax income increased significantly (+ ¥ 1.8B ) due to increased trading commissions and net financial income in the US Segment , recovery of crypto trading volume in the Crypto Asset Segment, return of profitability in the Investment

  5. Slide 5: Consolidated EBITDA

    Consolidated EBITDA \ 4.6 B (1,578) (903) (785) 1,618 2,388 3,327 2,802 2,253 2,091 2,124 2,530 1,763 1,220 (853) 591 (220) (615) 6 (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. 2022 4Q of FYE Mar. 2022 1Q of FYE Mar. 2023 2Q of FYE Mar. 2023 3Q of FYE Mar. 2023 4Q

  6. Slide 6: Strategy Overview for Major Segments

    Strategy Overview for Major Segments Monex Securities, TradeStation , and Coincheck each have solid corporate value and strategy. By promoting each strategy, Monex Group will continue to strive to manifest those values and pursue the sustainable growth of its corporate value. Increase in balance - b

  7. Slide 7: II. Consolidated Performance

    Ⅱ . Consolidated Performance

  8. Slide 8: Highlights 4Q of FYE Mar. 2023 (3 months)

    Highlights 4 Q of FYE Mar. 2023 (3 months) The US Segment achieved record operating revenues and income . IEO - related revenues contributed to a narrowing of the Crypto Asset Segment's loss. Consolidated pre - tax income was ¥ 2.2B . Japan US Crypto Asset Asia Pacific Investment * Segment profit/lo

  9. Slide 9: QoQ Comparison (3 months) Segment Performance

    QoQ Comparison (3 months) Segment Performance Investment Asia Pacific Crypto Asset US Japan (JPY million) 2023/3 4Q 2023/3 3Q 2023/3 4Q 2023/3 3Q 2023/3 4Q 2023/3 3Q 2023/3 4Q 2023/3 3Q 2023/3 4Q 2023/3 3Q 209 - 314 248 255 1,583 1,063 9,675 8,998 7,589 8,262 Total operating revenue after deducting

  10. Slide 10: QoQ Comparison (3 months) Analysis: Operating Revenue

    QoQ Comparison (3 months) Analysis: Operating Revenue Crypto: Trading volumes increased due to higher average crypto asset values. The second IEO ( FNCT) also contributed to the increase in revenue. Quarterly total operating revenue after deducting financial expenses and cost of sales +48.9% （ +520

  11. Slide 11: QoQ Comparison (3 months) Analysis: SG&A

    QoQ Comparison (3 months) Analysis: SG&A Crypto: Total SG&A expenses decreased QoQ as a result of advertising budget management in response to current market conditions. Total SG&A - 4.5 ％ ( - 81 ) * Professional fees related De - SPAC: \ 173M ( - 41 ) ■ Other ( - 51 ) * ■ Advertising expenses ( - 5

  12. Slide 12: Highlights FYE Mar. 2023 (12 months)

    Highlights FYE Mar. 2023 (12 months) * 1 Total operating revenue after deducting financial expenses and cost of sales. *2 Segment profit/loss = Pre - tax profit/loss. The same hereinafter . Stable profit generation in the Japan Segment and successful performance improvement in the US Segment after t

  13. Slide 13: YoY Segment Performance (12 months)

    Investment Asia Pacific Crypto Asset US Japan (JPY million) 2023/3 2022/3 2023/3 2022/3 2023/3 2022/3 2023/3 2022/3 2023/3 2022/3 308 465 1,053 1,222 7,369 28,621 34,503 23,579 30,940 30,438 Total operating revenue after deducting financial expenses and cost of sales 91 89 1,205 1,083 8,090 14,909 3

  14. Slide 14: YoY Comparison (12 months) Analysis: Operating Revenue

    YoY Comparison (12 months) Analysis: Operating Revenue Crypto: Decrease in net trading income due to lower trading volumes resulting from the decline in crypto asset values and market transaction volume . Maintained the customer base and the the number of units of crypto assets held by customers inc

  15. Slide 15: YoY Comparison (12 months) Analysis: SG&A

    YoY Comparison (12 months) Analysis: SG&A Crypto: Advertising expenses decreased about 77% YoY, by controlling advertising budget in response to current market conditions. Total SG&A - 45.7 ％ ( - 6,819 ) ■ Other ( - 677 ) * ■ Advertising expenses ( - 4,339 ) ■ Communication, freight and information

  16. Slide 16: II. Business Update

    MONEX GROUP If. Business Update

  17. Slide 17: Business Update Crypto Asset Segment 1/6

    Creating a digital asset ecosystem to diversify earnings over the mid - to long - term. Business Update Crypto Asset Segment 1/6 16 B2B IEO NFT web3 And more… Exchange/ Marketplace Digital Asset Ecosystem Coincheck NFT (β ） Continued to leverage the customer base of Coincheck , a crypto asset tradin

  18. Slide 18: Business Update Crypto Asset Segment 2/6

    Business Update Crypto Asset Segment 2/6 17 No.1 share of app downloads for 4 consecutive years in Japan. Crypto asset exchange / marketplace *1 Among Japanese crypto asset exchange apps. Term: 2019 - 2022 . Data source: AppTweak *2 Monthly crypto asset trading status table of JVCEA. As of Nov. 30,

  19. Slide 19: Business Update Crypto Asset Segment 3/6

    Business Update Crypto Asset Segment 3 /6 Opened a dedicated consulting service for corporate clients to provide critical B2B services in response to corporates’ need to establish a crypto strategy. 18 Coincheck for business overview Crypto needs of corporate clients ① NFT , web3 and Metaverse ・ Pur

  20. Slide 20: Business Update Crypto Asset Segment 4/6

    Business Update Crypto Asset Segment 4/6 19 Exchange/Marketplace - IEO NFT / Metaverse ・ Conducted 2nd IEO ( FNCT ) The amount of purchase applications for IEO of FNCT exceeded its fundraising target of 1.1 billion yen in just 60 minutes. The IEO ultimately created demand of +20 billion yen, ~ 19x t

  21. Slide 21: Business Update Crypto Asset Segment 5/6

    Business Update Crypto Asset Segment 5/6 20 Coincheck Group (CCG) *1 is proceeding with listing procedures. - After the proposed business combination with Nasdaq - listed SPAC, Thunder Bridge Capital Partners IV, Inc. (THCP), CCG will be a public company listed on the Nasdaq exchange in the U.S. (Te

  22. Slide 22: Business Update Crypto Asset Segment 6/6

    Business Update Crypto Asset Segment 6/6 21 Coincheck has identified numerous large growth opportunities that can be pursued organically and accelerated through M&A and partnerships. NFTs Financial services adjacencies Marketplace / IEO Continue to grow customer base and revenue to retain #1 market

  23. Slide 23: Appendix: Group Overview

    MONEX GROUP Appendix: Group Overview

  24. Slide 24: Appendix: Highlights 4Q of FYE Mar. 2023 (3 months) 2/3

    Appendix: Highlights 4Q of FYE Mar. 2023 (3 months) 2/3 23 Crypto Asset US ◆ Total operating revenue after deducting financial expenses and cost of sales, and Segment profit (JPY Million) 3,160 3,162 1,563 1,063 1,583 - 1,072 415 - 391 - 748 - 152 -10,000 0 10,000 20,000 2022/3 4Q 2023/3 1Q 2023/3 2

  25. Slide 25: Appendix: Highlights FYE Mar. 2023 (12 months) 2/3

    Appendix: Highlights FYE Mar. 2023 (12 months) 2/3 Crypto Asset (JPY million) US ◆ Total operating revenue after deducting financial expenses and cost of sales, and Segment profit 24 2,077 3,812 20,822 28,621 7,369 - 1,732 293 9,868 13,870 - 876 -5,000 5,000 15,000 25,000 35,000 2019/3 2020/3 2021/3

  26. Slide 26: Overview of Monex Group and Main Subsidiaries

    ■ Coincheck, Inc. (Tokyo, Japan) Crypto asset Exchange/Marketplace agency • President: Satoshi Hasuo • Founded in 2012, joined Monex Group in Apr. 2018 • Cryptocurrencies available: Bitcoin (BTC), Ethereum (ETH), Ethereum Classic (ETC), Ripple (XRP), NEM (XEM), etc. • # of verified users: 1.80 milli

  27. Slide 27: Overview of the Group

    Group Overview of the Group Monex International Limited Intermediate holding company 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) T

  28. Slide 28: Group Overview - Revenues, Costs, and Employees

    Group Overview - Revenues , Costs, and Employees ■ Japan Segment ■ US Segment ■ Crypto Asset Segment ■ Asia Pacific Segment ■ Investment Segment * Refer to the databook for FYE Mar 2023 27 Total operating revenue after deducting financial expenses \ 73.3 B Selling, general and administrative expense

  29. Slide 29: Disclaimer About Coincheck

    Disclaimer 28 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 , I nc. (“Coincheck”), Coincheck Group B.V. (“CCG”), Thunder Bridge Ca

  30. Slide 30: © Monex Group, Inc. www.monexgroup.jp/

    © Monex Group, Inc. www.monexgroup.jp/

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