Monex Group, Inc. · TSE:8698
Monex — Q3 FY2020 Earnings Presentation
38 slides from Monex's earnings presentation, Jan 31, 2020
Slide 1: Databook: Financial Results for 3Q of Fiscal Year Ending March 31, 2020
January 31, 2020 (TSE 1st Section: 8698) DATABOOK Financial Results for 3Q 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 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.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 Dec.31, 2017 Mar.31, 2018 Jun.30, 2018
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 Dec.31, 2017 Mar.31, 2018 Jun.30, 2018 Sep.30, 2018 Dec.31, 2018 Mar.31, 2019 Jun.30, 2019 Sep.30, 201
Slide 6: Market and Transaction Data (3) – 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 Dec. 31, As of Mar. 31, As of Jun. 30, As of Sep. 30, As of Dec. 31, As of Mar. 31, As
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 ◆ 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) 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) Sales of Investment Trusts(load) (left) 20,
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) 1,500 200,000 FX revenue (left) Trading value (right) 150,000 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 of FYE Mar. 2
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) 30% All accounts 35% Accounts opened within a year 30% Homemaker Civil servant Self-employe
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 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) 100 30 Futures DARTs(left) Options DARTs(left) 120,000 Equities DARTs(left) Vix Close Avg. (right) 100,000 20 80,000 50 60,000 10 40,000 20,000 0 0 0 As of Dec. 31,
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 Dec. As o f Mar. As o f Jun. As o f Sep. As o f Dec. As o f Mar. As o
Slide 14: 2. Financial Data
1. Market & Transaction Data 2. Financial Data 13
Slide 15: Introduction: IFRS adoption and differences from JGAAP
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 view to creating a global online financial group ■ Consolidated financial statements for 3Q FYE March 2020 Differences between IF
Slide 16: Consolidated financial results
Consolidated financial results (JPY million) 3Q FYE Mar. 3Q FYE Mar. Variance Change 2019 2020 Commission received 19,996 17,559 -2,438 -12.2% Net trading income 5,014 5,877 863 17.2% Financial income 14,562 14,586 25 0.2% Other operating income 544 553 9 1.7% Total operating revenue 40,116 38,575 -
Slide 17: Consolidated financial results (Reclassified)
Consolidated financial results (Reclassified) Reclassified consolidated statement of income (JPY million) 3Q FYE Mar. 2019 3Q FYE Mar. 2020 Variance Change Brokerage commissions 15,186 13,332 -1,854 -12.2% Stocks and ETFs 9,893 8,225 -1,668 -16.9% Options and Futures 5,289 5,060 -229 -4.3% Cryptocur
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. 2019 3Q FYE Mar. 2020 Variance Change Transaction-related expenses 8,964 8,546 -418 -4.7% Commissions paid 3,552 3,376 -175 -4.9% Exchange and association dues 588 526 -62 -10.6% C
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 2Q 3Q Brokerage commissions 5,134 4,720 5,332 4,278 4,341 4,328 4,663 Stocks and ETFs 3,364 3,130 3,399 2,716 2,575 2,566 3,084 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. 2019 FYE Mar. 2020 1Q 2Q 3Q 4Q 1Q 2Q 3Q Transaction-related expenses 3,157 2,810 3,000 3,085 2,881 2,834 2,831 Commissions paid 1,255 1,054 1,244 1,055 1,160 1,151 1,066 Exc
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 2Q 3Q Other financial income 140 187 284 541 30 60 23 Gain on valuation of investments in 34 21 -31 13 16 56 22 securities Gain on sales of investments in - 0 - -0 - -
Slide 22: Quarterly results by segment (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 2Q 3Q 4Q 1Q 2Q 3Q JPN US AP JPN US AP JPN US AP JPN US AP JPN US AP JPN US AP Brokerage commissions 2,652 1,996 113 2,928 2,362 90 2,212 1
Slide 23: Quarterly results by segment (Crypto Asset, Investment)
Quarterly financial results by segment (Reclassified) (Crypto Asset Segment, Investment Segment) Reclassified statement of income (JPY million) FYE Mar. 2019 FYE Mar. 2020 2Q 3Q 4Q 1Q 2Q 3Q Crypto Crypto Crypto Crypto Crypto Crypto Investment Investment Investment Investment Investment Investment As
Slide 24: Quarterly 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 2Q 3Q 4Q 1Q 2Q 3Q JPN US AP JPN US AP JPN US AP JPN US AP JPN US AP JPN US AP Transaction-related expenses 1,191 1,455 69 1,292 1,530 63
Slide 25: Quarterly segment SG&A (Crypto Asset, Investment)
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 2Q 3Q 4Q 1Q 2Q 3Q Crypto Crypto Crypto Crypto Crypto Crypto Investment Investment Investment Investment Investment Investment
Slide 26: Quarterly segment other income and expenses (Japan, US, AP)
Quarterly financial results by segment (Other income and other expenses) ( Japan, the US and Asia-Pacific) (JPY million) FYE Mar. 2019 FYE Mar. 2020 2Q 3Q 4Q 1Q 2Q 3Q JPN US AP JPN US AP JPN US AP JPN US AP JPN US AP JPN US AP Gain on valuation of 21 - - -31 - - 13 - - 16 - - 56 - - 22 - - investmen
Slide 27: Quarterly segment other income and 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 2Q 3Q 4Q 1Q 2Q 3Q Crypto Invest Crypto Invest Crypto Invest Crypto Invest Crypto Invest Crypto Invest Asset ment Asset ment Asset ment Asset m
Slide 28: US Segment: Quarterly financial results (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 2Q 3Q Brokerage commissions 20,377 17,834 21,099 18,100 19,477 19,745 17,358 Stocks and ETFs 4,731 4,258 4,813 4,556 4,248 4,212 3,504 Options an
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 2Q 3Q Transaction-related expenses 14,849 12,997 13,649 13,822 13,458 13,575 12,751 Commissions paid 7,929 6,236 7,787 6,301 7,444 7,532 6,801
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 Dec. 31, 2019 Mar. 31, 2019 Dec. 31, 2019 Cash and cash equivalents 154,146 135,720 Property and equipment 2,456 4,717 Cash segregated as deposits 566,220 601,569 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 Dec. 31, 2019 Mar. 31, 2019 Dec. 31, 2019 Derivative liabilities 4,311 4,150 Common stock 10,394 10,394 Margin transaction liabilities 32,793 42,151 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 Dec. 31, 2019 Investments in securities 3,914 5,396 Fair Value Through Profit or Loss (FVTPL) Quoted prices (unadjusted) in active markets for identical