Monex Group, Inc. · TSE:8698
Monex — Q1 FY2010 Earnings Presentation
39 slides from Monex's earnings presentation, Jul 24, 2009
Slide 1: Financial Results of 1Q of Fiscal Year Ending March 31, 2010
July 24, 2009 Financial Results of 1Q of Fiscal Year Ending March 31, 2010 This is an English translation of Japanese presentation material prepared for IR conference held on the date above; it includes the information on consolidated financial summary under Japanese GAAP. If there is any discrepanc
Slide 2: Important Matters Concerning Product-related Risks
Important Matters Concerning Product-related Risks This material is explanatory material on the financial results of Monex Group, Inc. (“the Company”). The descriptions herein concerning the products, services, etc. which are handled by the Company’s group companies (“the Group Companies”), are made
Slide 3: Our Business Principles
Our Business Principles 1. PURSUE A SPIRIT OF INNOVATION We will constantly strive to pioneer new fields in finance and propose new approaches to managing money. 2. STAY CUSTOMER FOCUSED We believe that the best guide to our corporate activities is the voice of our customers. With this guide, we wil
Slide 4: Table of Contents
Table of Contents Important Matters Concerning Product-related Risks ･･･ p.1 Our Business Principles ･･･ p.2 I. Financial Results III. Businesses 1. Financial Overview 1. Brokerage Business (1) Major Business Activities for 1Q ･･･ p.5 - Stock Brokerage Business ･･･ p.24 (2) Financial Overview of 1Q,
Slide 5: 1. Financial Results
1. Financial Results 2. Strategies 3. Businesses 4. To our Shareholders 5. Appendix 4
Slide 6: Major Business Activities for the First Quarter
Major Business Activities for the First Quarter ◆ Implementation of cost-cuts Approximately one billion yen was decreased for this year’s budget compared to that from the previous fiscal year, by cutting SG&A costs (approximately a 6.5% decrease). The Company successfully cut the actual SG&A costs f
Slide 7: Financial Overview
Financial Overview ■Financial Overview of 1Q(Apr.- Jun.) of FYE Mar. 31, 2010 Nearly 10% cost reduction which exceeded budget, and stock trading values took an upturn which turned up our bottom line Net operating revenues 5,218 million yen +19.7% from 4Q of FYE Mar. 31, 2009 ・Brokerage commissions
Slide 8: Highlights of 1Q (1) Net Operating Revenues and Extraordinary Income
Highlights of 1Q (1) Net Operating Revenues and Extraordinary Income ■Comparison with 4Q of FYE Mar. 31, 2009 ■Comparison with 1Q of FYE Mar. 31, 2009 ◆Equity trading values took a upturn, and brokerage ◆Trading values by individual investors and margin commissions increased trades outstanding decre
Slide 9: Highlights of 1Q (2) SG&A
Highlights of 1Q (2) SG&A ■Comparison with 4Q of FYE Mar. 31, 2009 ■Comparison with 1Q of FYE Mar. 31, 2009 ◆Nearly 10% cost reduction compared to last quarter ◆Nearly 10% cost reduction, compared to last 1Q Decrease by 347 million yen (-8.9.%) Decrease by 378 million yen (-9.6.%) from 4Q of FYE Mar
Slide 10: Highlights of 1Q (3) Balance Sheet
Highlights of 1Q (3) Balance Sheet ■Maintain a safe financial structure by maintaining liquidity and credit trust, and by controlling risk assets (in billion yen) (*3) Non-current assets（investment value of risk assets） (in billion yen) [Segregated cash trust] [Cash margin from customers Property/eq
Slide 11: Financial Summary: 4Q of FYE Mar. 2009 vs. 1Q of FYE Mar. 2010
Financial Summary : 4Q of FYE Mar. 31, 2009 vs. 1Q of FYE Mar. 31, 2010 (in 3 months) (in million yen, %) 4Q of FYE 1Q of FYE Mar. 31, 2009 Mar. 31, 2010 Change (Jan. 2009-Mar. 2009) (Apr. 2009-Jun. 2009) Operating Revenues 4,927 6,138 24.6 ％ Net Operating Revenues 4,359 5,218 19.7 ％ SG&A 3,902 3,55
Slide 12: Financial Summary: 1Q of FYE Mar. 2009 vs. 1Q of FYE Mar. 2010
Financial Summary : 1Q of FYE Mar. 31, 2009 vs. 1Q of FYE Mar. 31, 2010 (in 3 months) (in million yen, %) 1Q of FYE 1Q of FYE Mar. 31, 2009 Mar. 31, 2010 Change (Apr. 2008-Jun. 2008) (Apr. 2009-Jun. 2009) Operating Revenues 7,370 6,138 -16.7 ％ Net Operating Revenues 5,987 5,218 -12.9 ％ SG&A 3,933 3,
Slide 13: Financial Summary: Financial highlights (quarterly trend)
Financial Summary：Financial highlights (quarterly trend) ■Net operating revenues and Operating Income ■ROE (Annualized) (million yen) (billion yen) 30% 20,000 1,600 19% Total trading value 20% 14% of individual investors 10% 18,000 4% in 4 major stock exchanges 1,400 (Average per business day)(right
Slide 14: Financial Summary: Profit margin and cost structure
Financial Summary：Profit margin and cost structure ■Profit Margin (Operating income/ Net Operating revenues)* ■Cost Structure (Apr. 2009 - Jun. 2009) 60% Strategically Fixed costs and costs 50% controllable costs correlated to the number of accounts 40% 34% Commission to 33% 32% stock exchange 30% e
Slide 15: Financial Summary: Quarterly trends in income statement
Financial Summary：Quarterly trends in income statement (in million yen) FYE Mar.31, 2008 FYE Mar.31, 2009 FYE Mar.31,2010 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q Brokerage commissions 4,228 4,160 4,022 3,692 3,505 2,612 2,911 2,342 3,145 Underwriting and distribution commissions 19 77 5 9 1 0 1 2 1 Subscription
Slide 16: Financial Summary: Quarterly trends in SG&A
Financial Summary：Quarterly trends in SG&A (in million yen) FYE Mar.31, 2008 FYE Mar.31, 2009 FYE Mar.31,2010 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q Transaction-related expenses 1,361 1,310 1,151 1,099 1,182 1,172 1,188 1,095 979 Commissions paid 231 248 245 233 238 214 240 190 196 Exchange and association dues
Slide 17: 2. Strategies
1. Financial Results 2. Strategies 3. Businesses 4. To our Shareholders 5. Appendix 16
Slide 18: Mission Statement
Mission Statement Take the position as an online integrated financial service provider for individual investors Provide individual investors with institutional investor level investment opportunities Offer comprehensive products and services with “world class quality” Empower investors educa
Slide 19: The Monex Group
The Monex Group Holding Company （As of June 30, 2009） [ Financial products and services for individual investors ] [ Overseas subsidiary and office ] Securities Company FX Business Overseas Businesses MBH America, Inc. Research in the global financial industry Monex FX, Inc. （Investment Ratio） Speci
Slide 20: Roadmap
Roadmap ■ Long-term goal: Aim for overseas business to contribute to 1/3 of the total revenue Our goal is to become a GLOBAL TECHNOLOGY-BASED RETAIL financial services provider Future growth and management policy Online • Expanding active trader customer segment Trading • Strengthening FX business
Slide 21: Overseas Business Development
Overseas Business Development ■Business development and areas of growth ■Update on overseas business development Overseas markets with high growth potential With extraordinary levels of economic growth we are ◆ China seeing the increase in financial assets of individuals in March 2008 - Establishm
Slide 22: Comparison Analysis: Revenues/SG&A per Customers' Assets in Custody
Comparison Analysis : Revenues/SG&A per Customers’ Assets in Custody (Annualized) Rakuten Securities 2.0% Revenues per customers’ assets in custody Mitsui Sumitomo FG MUFG Holdings (Consolidated) (Consolidated) (Consolidated) improved Equity markets rebounded, and customers’ assets 4Q of Mar. 2009 4
Slide 23: Current and Future Structure of Revenues and Customers' Assets by Product
Current and Future Structure of Revenues and Customers’ Assets by Product ■Strengthen FX and mutual fund businesses and diversify revenue sources 【Current Structure (1Q of FYE Mar. 2010)】 Direction of each business line 【Future Structure】 （Foreign business development plan is not included) Investmen
Slide 24: 3. Businesses
1. Financial Results 2. Strategies 3. Businesses 4. To our Shareholders 5. Appendix 23
Slide 25: Stock Brokerage Business: Expansion of shares of trading products
Stock Brokerage Business：Expansion of shares of trading products ■Business results of U.S. ETFs and stocks ■Upturn of stock market in Japan ◆Trading of U.S. ETFs and stocks have steadily increased ◆Trading value improved since April to June of 2008 -The bottom of turnovers and users was Jan. to Mar.
Slide 26: Interest Product Business
Interest Product Business: Adding varieties to the fixed income products and growth of the stock lending service ■Enhancing fixed income products ■Original short-term investment products/services ◆“Monex Notes for Individuals” series ◆Growth of the stock lending service Short-term yen notes - Renewe
Slide 27: FX Business: Expanding profit in a growing market
FX Business：Expanding profit in a growing market ■Structure of trading profit on FX business ◆Monex, Inc FX PLUS ◆Monex FX, Inc - New account acquisition has been increasing, achieved - Remained in surplus on a monthly basis 90,000 accounts in May 2009 - Monthly number of new accounts has been growi
Slide 28: Mutual Fund Business: Top-class online mutual fund business
Mutual Fund Business：Top-class online mutual fund business ■Strengthen product lines and services ■Top-class online mutual fund sales to expand mutual fund balance ◆Sales volume and balance making a recovery ◆Keeping the top-class position in online mutual fund sales （billion yen Assets in custody b
Slide 29: Alternative Investment Business
Alternative Investment Business: Opportunities in post financial market crisis ■Institutional-quality products for individuals http://www.monexai.com/english.php ◆Cutting-edge alternative investment products for ■Efforts for institutional investors business individuals (As of June 2009) ◆4 year trac
Slide 30: Investment Banking Business: Rapid adaptation to environmental change
Investment Banking Business: Rapid adaptation to environmental change ■Monex, Inc. and WR Hambrecht & Co Japan, Inc. ◆ Aiming to provide small and mid cap. companies with a wide variety of investment banking services such as fund raising, investment, IPO and M&A advice ◆ Providing one-stop financial
Slide 31: Intelligence Infrastructure: Creating a new value of Monex Group
Intelligence Infrastructure：Creating a new value of Monex Group ■Creating a new value - Advisory ■ Continuous outflow of information ◆Creating a new value of Monex ◆ Providing valuable information and knowledge for - Providing proper investment advice in addition to global strategic investment to in
Slide 32: R&D: The next generation of asset management by Kabu-robo
R&D: The next generation of asset management by Kabu-robo ■ Recent developments of Trade Science Trade Science Corporation ◆ Kabu-robo, automated investment program - Using real-time market data, Kabu-robo makes day-to-day ◆ R&D outfit of Monex Group investment decisions using pre-programmed investm
Slide 33: Kabu-robo Project: Innovative challenge to heighten our corporate value
Kabu-robo Project： Innovative challenge to heighten our corporate value ■Key concepts of the Kabu-robo project ◆ Internet oriented Construct a system in which a variety of excellent ideas can be accumulated on an open platform ◆ Technology based Incorporation of cutting-edge AI technology and financ
Slide 34: 4. To our Shareholders
1. Financial Results 2. Strategies 3. Businesses 4. To our Shareholders 5. Appendix 33
Slide 35: ROE and Shareholders' Return
ROE and Shareholders’ Return ■Pursuing investment returns for our shareholders ◆ROE ◆Shareholder’s return 40% - The Company’s policy for shareholders’ return is to pay the dividends based on the business performance. The payout ratio is generally targeted at 50% of consolidated net income 30% of cur
Slide 36: Investors' Guide
Investors’ Guide ■Stock information of Monex Group, Inc. ◆Share price and volume Major shareholders and share distribution Volume (shares) Price（yen） (Recorded as of the end of March 2009) 2,500,000 250,000 Major shareholders Top 3 shareholders 2,000,000 200,000 Financial Institutions 9.90% Nikko C
Slide 37: 5. Appendix
1. Financial Results 2. Strategies 3. Businesses 4. To our Shareholders 5. Appendix 36
Slide 38: Additional Data (Monex, Inc.)
0 10 20 30 40 50 60 70 80 90 100 0.0 0.5 1.0 1.5 2.0 2.5 20 20 08 08 /7 /7 20 20 08 (billion yen) 08 /8 /8 (billion yen) 20 20 08 08 /9 /9 20 20 08 08 /1 /1 0 0 20 20 ◆Cash Inflow/Outflow 08 ◆Stock Inflow/Outflow 08 /1 /1 1 1 20 20 08 08 /1 /1 2 2 20 20 09 09 /1 /1 20 20 0 09 9/ /2 2 20 20 09 09 /3
Slide 39: Customer Portfolio of Monex, Inc.
Customer Portfolio of Monex, Inc. (as of the end of June, 2009) ■ Sex ■ District Others 女性 Female 23.2% 25.3% Tokyo Metropolitan District Nagoya District 50.5% 男性 Male 8.5% 74.7% Osaka District 17.8% ■ Age ■ Occupation Over 70 会社員 Company Employee 46.9% 70代以上 3.5% Unemployed 就業なし 17.5% 60代 60 s 11.8