Monex Group, Inc. · TSE:8698
Monex — Q3 FY2018 Earnings Presentation
32 slides from Monex's earnings presentation, Jan 31, 2018
Slide 1: Databook: Financial Results for 3Q of Fiscal Year Ending March 31, 2018
January 31, 2018 (TSE 1st Section: 8698) DATABOOK Financial Results for 3Q of 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 fr
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 Dec.31, 2015 Mar.31, 2016 Jun.30, 2016 Sep.30, 2016 Dec.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 Dec.31, 2015 Mar.31, 2016 Jun.30, 2016 Sep.30, 2016 Dec.31, 2016 Mar.31, 2017 Jun.30, 2017 Sep.30, 2017 Dec.31, 2017 (perso
Slide 6: Market and Transaction Data (3) – Japan Segment 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 1,800,000 1,600,000 1,400,000 1,200,000 1,000,000 800,000 600,000 400,000 200,000 0 As of Dec. 31, As of Mar. 31, As of Ju
Slide 7: Market and Transaction Data (4) Equities and ETFs
Market and Transaction Data (4) Japan Segment - Monex, Inc. (Equities and ETFs ) ◆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 Futures and Options DARTs (left) (JPY 100million) its equity
Slide 8: Market and Transaction Data (5) 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) 60,000 Sales of Investment Trusts(load) (le
Slide 9: Market and Transaction Data (6) 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 3Q of FYE 4Q of FYE 1Q of FYE 2Q of FYE 3Q of FYE 4Q of FYE 1Q of FYE 2Q of FYE 3Q
Slide 10: Market and Transaction Data (7) 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: Market and Transaction Data (8) 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: 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(*) （thousand） (account) Futures DARTs(left) Options DARTs(left) 70,000 150 30 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 As of
Slide 13: Market and Transaction Data (10) 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 Dec. 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
Slide 14: 2. Financial Data
1. Market & Transaction Data 2. Financial Data 13
Slide 15: Introduction: Consolidated financial statements for 3Q 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) 3Q FYE Mar. 3Q FYE Mar. Variance Change 2017 2018 Commission received 19,666 21,356 1,691 8.6% Net trading income 3,446 2,893 -553 -16.1% Financial income 9,827 13,074 3,247 33.0% Other operating income 534 1,053 520 97.3% Total operating revenue 33,473 3
Slide 17: Consolidated financial results (Reclassified)
Consolidated financial results (Reclassified) Reclassified consolidated statement of income (JPY million) 3Q FYE Mar. 2017 3Q FYE Mar. 2018 Variance Change Brokerage commissions 15,185 16,393 1,208 8.0% Stocks and ETFs 10,689 11,831 1,143 10.7% Options and Futures 4,496 4,561 65 1.4% Underwriting an
Slide 18: Consolidated financial results (SG&A)
Consolidated financial results (SG&A) The details of SG&A in consolidated statement of income (JPY million) 3Q FYE Mar. 2017 3Q FYE Mar. 2018 Variance Change Transaction-related expenses 8,323 8,752 430 5.2% Commissions paid 3,080 2,960 -120 -3.9% Exchange and association dues 609 670 61 10.0% Commu
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 Brokerage commissions 5,333 4,642 5,210 4,956 5,247 5,217 5,928 Stocks and ETFs 3,662 3,266 3,761 3,504 3,736 3,705 4,391 Options and F
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 Transaction-related expenses 2,837 2,630 2,856 2,958 3,000 2,765 2,987 Commissions paid 1,087 981 1,012 1,034 981 962 1,017 Exchange
Slide 21: Quarterly consolidated financial results (Other income and other expenses)
Quarterly consolidated financial results (Other income and other expenses) FYE Mar. 2017 FYE Mar. 2018 (JPY million) 1Q 2Q 3Q 4Q 1Q 2Q 3Q Other financial income 355 288 1,012 12 336 -60 -25 Gain on sales of investments in securities - - 83 73 0 85 - Gain on redemption of investment securities - - 72
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 2Q 3Q 4Q 1Q 2Q 3Q 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 2,890 1,692 86 3,349 1,810 83 3,034 1,857 105 3,263 1,903 1
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 2Q 3Q 4Q 1Q 2Q 3Q 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 1,266 1,336 56 1,378 1,456 57 1,359 1,575 67 1,230
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 2Q 3Q 4Q 1Q 2Q 3Q 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 45 -17 - 296 30 - -218 10 - 44 - - - - - - - - instruments for risk h
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 Brokerage commissions 18,589 16,453 16,193 16,573 17,067 16,579 16,584 Stocks and ETFs 4,412 4,058 4,059 4,442 4,255 3,635 3,785 Options
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 Transaction-related expenses 13,875 12,974 13,046 14,094 15,538 12,259 12,502 Commissions paid 7,502 6,902 6,547 6,324 6,283 5,934 5,96
Slide 27: Financial results by consolidated and segment
Financial results by consolidated and segment (JPY million) FYE Mar. 2016 FYE Mar. 2017 Variance Cons. * JPN U.S. AP Cons. JPN U.S. AP Cons. JPN U.S. AP Commission received 32,152 19,430 12,405 452 26,349 15,267 10,858 347 -5,803 -4,163 -1,548 -105 Net trading income 6,671 5,675 996 -0 4,498 4,499 -
Slide 28: Financial results by consolidated and segment (Reclassified)
Financial results by consolidated and segment(Reclassified) (JPY million) FYE Mar. 2016 FYE Mar. 2017 Variance Cons. JPN U.S. AP Cons. JPN U.S. AP Cons. JPN U.S. AP Brokerage commissions 25,317 16,032 8,964 450 20,141 12,547 7,371 346 -5,176 -3,485 -1,593 -104 Stocks and ETFs 17,795 15,305 2,169 450
Slide 29: Financial results by consolidated and segment (SG&A)
Financial results by consolidated and segment(SG&A) (JPY million) FYE Mar. 2016 FYE Mar. 2017 Variance Cons. JPN U.S. AP Cons. JPN U.S. AP Cons. JPN U.S. AP Transaction-related expenses 13,862 6,357 7,508 204 11,281 5,323 5,869 226 -2,581 -1,034 -1,640 22 Commissions paid 5,312 1,323 4,083 54 4,114
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 Dec. 31, 2017 Mar. 31, 2017 Dec. 31, 2017 Cash and cash equivalents 77,900 98,081 Property and equipment 2,062 2,222 Cash segregated as deposits 552,028 597,151 Intangible assets 53,751 51,94
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 Dec. 31, 2017 Mar. 31, 2017 Dec. 31, 2017 Derivative liabilities 5,828 7,206 Common stock 10,394 10,394 Margin transaction liabilities 40,664 45,274 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 Dec. 31, 2017 Investments in securities 3,611 4,630 Fair Value Through Profit or Quoted prices (unadjusted) in active markets for identical - - assets or