Slide 1: Databook: Financial Results for Fiscal Year Ending March 31, 2018
April 26, 2018 (TSE 1st Section: 8698) DATABOOK Financial Results for Fiscal Year Ending March 31, 2018 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 the c
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.31 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 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 Mar.31, 2016 Jun.30, 2016 Sep.30, 2016 Dec.31, 2016 Mar.31,
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 1,000 500 0 As of As of As of As of As of As of As of As of As of Mar.31, 2016 Jun.30, 2016 Sep.30, 2016 Dec.31, 2016 Mar.31, 2017 Jun.30, 2017 Sep.30, 2017 Dec.31, 2017 Mar.31, 2018 (perso
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 2,000,000 1,500,000 1,000,000 500,000 0 As of Mar. 31, As of Jun. 30, As of Sep. 30, As of Dec. 31, As of Mar. 31, As of Jun. 30, As
Slide 7: 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 Cash trading value per business day (left) (JPY 100
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) (JPY million) (JPY million) Sales of Investment Trusts(no-load) (left) 70,000 500,000 7,000 Sales of Investment Tr
Slide 9: Japan Segment - Monex, Inc. (FX)
Market and Transaction Data (6) Japan Segment - Monex, Inc. (FX) ◆OTC FX business (JPY million) (JPY 100million) 1,500 150,000 Commissions(left) Trading revenue(left) Trading value (right) 1,000 100,000 500 50,000 0 0 4Q of FYE 1Q of FYE 2Q of FYE 3Q of FYE 4Q of FYE 1Q of FYE 2Q of FYE 3Q of FYE 4Q
Slide 10: 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) All accounts Accounts opened within a year 35% 35% Homemaker Civil servant Self-employed 30
Slide 11: 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 As
Slide 12: U.S. Segment – TradeStation Group
Market and Transaction Data (9) U.S. Segment – TradeStation Group ◆ Numbers of active accounts ◆ DARTs and VIX(*) （thousand） (account) 80,000 150 30 70,000 Futures DARTs(left) Options DARTs(left) Equities DARTs(left) Vix Close Avg. (right) 60,000 50,000 100 20 40,000 30,000 50 10 20,000 10,000 0 0 0
Slide 13: Asia-Pacific Segment - Monex Boom Securities
Market and Transaction Data (10) Asia-Pacific Segment- Monex Boom Securities ◆ 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 Mar. 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 f Dec. As o f
Slide 14: 2. Financial Data
1. Market & Transaction Data 2. Financial Data 13
Slide 15: Introduction: Consolidated financial statements for FYE March 2018
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) FYE Mar. FYE Mar. Variance Change 2017 2018 Commission received 26,349 29,196 2,847 10.8% Net trading income 4,498 3,865 -633 -14.1% Financial income 14,313 19,349 5,036 35.2% Other operating income 671 1,225 554 82.6% Total operating revenue 45,831 53,63
Slide 17: Consolidated financial results (Reclassified)
Consolidated financial results (Reclassified) Reclassified consolidated statement of income (JPY million) FYE Mar. 2017 FYE Mar. 2018 Variance Change Brokerage commissions 20,141 22,540 2,399 11.9% Stocks and ETFs 14,193 15,974 1,781 12.5% Options and Futures 5,948 6,566 618 10.4% Underwriting and d
Slide 18: Consolidated financial results (SG&A)
Consolidated financial results (SG&A) The details of SG&A in consolidated statement of income (JPY million) FYE Mar. 2017 FYE Mar. 2018 Variance Change Transaction-related expenses 11,281 11,963 682 6.1% Commissions paid 4,114 4,125 11 0.3% Exchange and association dues 808 897 89 11.1% Communicatio
Slide 19: Quarterly consolidated financial results (Reclassified)
Quarterly consolidated financial results (Reclassified) Reclassified consolidated statement of income (JPY million) FYE Mar. 2017 FYE Mar. 2018 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Brokerage commissions 5,333 4,642 5,210 4,956 5,247 5,217 5,928 6,147 Stocks and ETFs 3,662 3,266 3,761 3,504 3,736 3,705 4,391 4,14
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. 2017 FYE Mar. 2018 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Transaction-related expenses 2,837 2,630 2,856 2,958 3,000 2,765 2,987 3,211 Commissions paid 1,087 981 1,012 1,034 981 962 1,017
Slide 21: Quarterly consolidated financial results (Other income and other expenses)
Quarterly consolidated financial results (Other income and other expenses) (JPY million) FYE Mar. 2017 FYE Mar. 2018 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Other financial income 355 288 1,012 12 336 -60 -25 47 Gain on sales of investments in securities - - 83 73 0 85 - 13 Gain on redemption of investment securiti
Slide 22: Quarterly financial results by segment (Reclassified)
Quarterly financial results by segment (Reclassified) Reclassified statement of income (JPY million) FYE Mar. 2017 FYE Mar. 2018 3Q 4Q 1Q 2Q 3Q 4Q JPN U.S. AP JPN U.S. AP JPN U.S. AP JPN U.S. AP JPN U.S. AP JPN U.S. AP Brokerage commissions 3,349 1,810 83 3,034 1,857 105 3,263 1,903 139 3,289 1,840
Slide 23: 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. 2017 FYE Mar. 2018 3Q 4Q 1Q 2Q 3Q 4Q JPN U.S. AP JPN U.S. AP JPN U.S. AP JPN U.S. AP JPN U.S. AP JPN U.S. AP Transaction-related expenses 1,378 1,456 57 1,359 1,575 67 1,230 1,733 99 1,364
Slide 24: Quarterly financial results by segment (Other income and other expenses)
Quarterly financial results by segment (Other income and other expenses) (JPY million) FYE Mar. 2017 FYE Mar. 2018 3Q 4Q 1Q 2Q 3Q 4Q JPN U.S. AP JPN U.S. AP JPN U.S. AP JPN U.S. AP JPN U.S. AP JPN U.S. AP Gain or loss on Financial 296 30 - -218 10 - 44 - - - - - - - - - - - instruments for risk hedg
Slide 25: 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. 2017 FYE Mar. 2018 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Brokerage commissions 18,589 16,453 16,193 16,573 17,067 16,579 16,584 22,826 Stocks and ETFs 4,412 4,058 4,059 4,442 4,255 3,635 3,78
Slide 26: 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. 2017 FYE Mar. 2018 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Transaction-related expenses 13,875 12,974 13,046 14,094 15,538 12,259 12,502 14,261 Commissions paid 7,502 6,902 6,547 6,324 6,283
Slide 27: Financial results by consolidated and segment
Financial results by consolidated and segment (JPY million) FYE Mar. 2017 FYE Mar. 2018 Variance Cons. * JPN U.S. AP Cons. JPN U.S. AP Cons. JPN U.S. AP Commission received 26,349 15,267 10,858 347 29,196 16,968 11,858 557 2,847 1,701 1,001 209 Net trading income 4,498 4,499 - -1 3,865 3,865 - 0 -63
Slide 28: Financial results by consolidated and segment (Reclassified)
Financial results by consolidated and segment(Reclassified) (JPY million) FYE Mar. 2017 FYE Mar. 2018 Variance Cons. JPN U.S. AP Cons. JPN U.S. AP Cons. JPN U.S. AP Brokerage commissions 20,141 12,547 7,371 346 22,540 14,082 8,091 554 2,399 1,535 721 207 Stocks and ETFs 14,193 12,125 1,845 346 15,97
Slide 29: Financial results by consolidated and segment (SG&A)
Financial results by consolidated and segment(SG&A) (JPY million) FYE Mar. 2017 FYE Mar. 2018 Variance Cons. JPN U.S. AP Cons. JPN U.S. AP Cons. JPN U.S. AP Transaction-related expenses 11,281 5,323 5,869 226 11,963 5,797 6,043 332 682 474 174 106 Commissions paid 4,114 1,229 2,965 56 4,125 1,407 2,
Slide 30: 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, 2017 Mar. 31, 2018 Mar. 31, 2017 Mar. 31, 2018 Cash and cash equivalents 77,900 83,884 Property and equipment 2,062 2,122 Cash segregated as deposits 552,028 543,438 Intangible assets 53,751 49,85
Slide 31: 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, 2017 Mar. 31, 2018 Mar. 31, 2017 Mar. 31, 2018 Derivative liabilities 5,828 5,340 Common stock 10,394 10,394 Margin transaction liabilities 40,664 29,683 Additional-paid in capital 40
Slide 32: Consolidated statement of financial position (3)
Consolidated statement of financial position (3) ■Investments in securities (JPY million) As of As of measurement method Description Mar. 31, 2017 Mar. 31, 2018 Investments in securities 3,611 3,123 Fair Value Through Profit or Quoted prices (unadjusted) in active markets for identical - - assets or