Slide 1: Financial Results of Fiscal Year Ended March 31, 2011
April 27, 2011 Financial Results of Fiscal Year Ended March 31, 2011 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 consolidated financial statements of
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. Global Vision III. Data 1. Major Business Activities in 4Q p.5 1. Financial Results: Quarterly trends in income statement ･･･ p.27 2. Global Vision ･･･ p.6 2. Financial Results: Quarterly
Slide 5: 1. Global Vision
1. Global Vision 2. Financial Results 3. Data 4
Slide 6: Major Business Activities in the Fourth Quarter
Major Business Activities in the Fourth Quarter ◆Ended profitable in quarterly base (3 months) in spite of unfriendly operational condition ・Equity, derivative, FX trading and mutual fund sales increased due to recovering market condition ・Despite recognizing uncollectible receivables from customer’
Slide 7: Global Vision
Global Vision (Status) ◆ The world is becoming flat in various aspects, especially the world through the Internet ◆ In such circumstances, investors require various and global investment products (Issue to be solved) ◆ Costly if provide all products to investors ⇔ But lose competitiveness if fail to
Slide 8: Outline of Global Vision
Outline of Global Vision ◆Concept of shared platform in Global Vision China clients Japan clients US clients Website Website Website Call center Call center Call center Develop locally Marketing Marketing Marketing Compliance Compliance Compliance Market information service Market information servic
Slide 9: Current Environments
Current Environments ■Circumstances change widely, deeply and irreversibly 1. Slowdown or backward trend of the domestic shift “from deposit to investment” (image) (Shift “from deposit to investment”) Former recognition Current recognition (not clear) 2006 present (time) 2. Growth of Chinese economy
Slide 10: Correspond to the Circumstances
Correspond to the Circumstances ■Constructing new business portfolio Status Prospect 1. Re-construct Japan ①Enhance customer base (by lowering Initiated Targeting 6,000 new accounts business commission rate, improving tools and FX per month services) ②Re-design service providing system (IT, etc.) In
Slide 11: Acquisition of TradeStation Group, Inc.
Acquisition of TradeStation Group, Inc. ■Summary of TradeStation ■Prominent difference in client base, reflected in Revenue per account ◆ Comparison of DARTs among US listed brokerages ◆ About TradeStation • Formed in 1982 as a trading platform provider. Initial Public Offering in 1997 (listed on th
Slide 12: Income Statement Analysis of TradeStation
Income Statement Analysis of TradeStation ■ Revenue Breakdown of TradeStation ■ Comparison of revenue structure ◆Consolidated Income Statement（USGAAP） ◆ TradeStation: Trend of Net Operating Revenue Positive net income despite declined equity markets and low interest rate environment (US GAAP) (USD m
Slide 13: Impact on the Consolidated Monex Group's Balance Sheet
Impact on the Consolidated Monex Group’s Balance Sheet ■Currently, we maintain a healthy balance sheet with the capability to complete this transaction Post acquisition, we will have sufficient equity, liquidity and financing capability Summary of consolidated BS as of March end 2011 ◆We plan to fin
Slide 14: Group Structure after the Acquisition (planned)
Group Structure after the Acquisition (planned) Monex Group, Inc. Oki Matsumoto, Chairman & CEO Global Management Committee Global Management Committee Oki Matsumoto, Salomon Sredni, etc. to decide and direct Group strategies and resource allocation, etc. TradeStation Group, Inc. Asia Management Com
Slide 15: Roadmap
Roadmap ■Targets/ goals to achieve in 4 years Short term (1 year) Mid term (2 years) Long term (3-4 years) ■Strengthen marketing effort esp. targeting ■Full examination into the company's novice investors, eg. lowering commission business processes (including consideration of rate for small amount t
Slide 16: 2. Financial Results
1. Global Vision 2. Financial Results 3. Data 15
Slide 17: Financial Summary: 3Q vs 4Q of FYE Mar. 31, 2011
Financial Summary : 3Q of FYE Mar. 31, 2011 vs. 4Q of FYE Mar. 31, 2011 (in 3 months) （in million yen, %） 3Q of FYE Mar. 31, 2011 4Q of FYE Mar. 31, 2011 Change (Oct. 2010 - Dec. 2010) (Jan. 2011 – Mar. 2011） Operating Revenues 5,816 6,725 15.6% Net Operating Revenues 4,949 6,361 28.5% SG&A 4,309 4,
Slide 18: Financial Summary: FYE Mar. 2010 vs FYE Mar. 2011
Financial Summary : FYE Mar. 31, 2010 vs. FYE Mar. 31, 2011 (in 12 months) （in million yen, %） FYE Mar. 31, 2010 FYE Mar. 31, 2011 Change (Apr. 2009 – Mar. 2010） (Apr. 2010 – Mar. 2011） Operating Revenues 22,499 25,227 12.1% Net Operating Revenues 19,921 22,589 13.4% SG&A 15,460 17,848 15.4% Operati
Slide 19: Balance Sheet
Balance Sheet ■Maintain financial strength by keeping availability of funds and liquidity and controlling risk assets (*3) Non-current assets（investment value of risk assets） (in billion yen) (in billion yen) [Segregated cash trust] [Cash margin from customers Property/equipment 0.7（Facilities, equi
Slide 20: Highlights of Revenue: Increasing and Decreasing Factors
Highlights of Revenue: Increasing and Decreasing Factors ■Comparison with 3Q of FYE Mar. 31, 2011 ■Comparison with FYE Mar.31, 2010 ◆ Increase in FX trading values and improvement of ◆Significant increase in equity trading values Financial Income Increased by 2,667 million yen Increased by 1,411 mil
Slide 21: Highlights of SG&A: Increasing Factors
Highlights of SG&A: Increasing Factors ■Comparison with 3Q of FYE Mar. 31, 2011 ■Comparison with FYE Mar.31, 2010 ◆Slightly increased due to consolidation of BOOM ◆Due to the merger system related costs and Securities amortization of goodwill increased Increased by 200 million yen （+4.6％） from 3Q of
Slide 22: Breakdown of Net Operating Revenues by Business
Breakdown of Net Operating Revenues by Business ■FYE Mar. 31, 2011 （12 months： from Apr. 2010 to Mar. 2011） （in million yen） Business category Revenue from “stock” Revenue from “flow” Total % Net financial income Cash trading commissions 5,224 Equities 4,517 Margin trading commissions 3,674 13,608 6
Slide 23: Future Plan for Domestic Businesses
Future Plan for Domestic Businesses ◆ Equity business Strengthen marketing by cutting commissions for small value transactions Reinforce the development of trading tools for such as “Monex Trader” on SmartPhones and iPad. ◆ FX business After the release of advanced trading tool “Monex Joo”, smartpho
Slide 24: Differenciation of Trading Services
Differenciation of Trading Services ■Improve usability to activate trading ■Portfolio management advice tool “MONEX VISION β” ◆ Revision of trading commission table ◆ “MONEX VISION β” analyzes and evaluates the assets by using the latest financial engineering, and provides the Announced on March 11,
Slide 25: Progress of Brokerage Business in PRC
Progress of Brokerage Business in PRC ■ Acquired BOOM in HK, Asia’s global financial center ■Quarterly financial result of BOOM Group ◆Consolidated financial result of Monex International Limited including BOOM Group (As from Jan. to Mar. 2011, in thousand yen) ◆ BOOM Group Overview Operating revenu
Slide 26: Cost Control
Cost Control ■Measures toward further cost reduction to improve profit margin (SG&A) 1.95 0.06 0.5 billion yen (in billion yen) decrease Advertising expenses………Strategically controllable cost 0.17 (*1) Commission paid and association fees….Commissions to stock exchange 0.13 1.45 1.48 1.50 1.37 Infor
Slide 27: 3. Data
1. Global Vision 2. Financial Results 3. Data 26
Slide 28: Financial Results: Quarterly trends in income statement
Financial Results：Quarterly trends in income statement （in million yen） FYE Mar. 31, 2010 FYE Mar. 31, 2011 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Brokerage commissions( includes OSE-FX) 3,145 2,670 2,073 2,604 2,772 1,904 2,089 3,336 Stocks and ETFs 3,063 2,577 1,979 2,449 2,582 1,631 1,855 3,015 Boom securities
Slide 29: Financial Results: Quarterly trends in SG&A
Financial Results：Quarterly trends in SG&A （in million yen） FYE Mar. 31, 2010 FYE Mar. 31, 2011 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Transaction-related expenses 979 1,044 948 1,247 1,267 1,118 1,260 1,360 Commissions paid 196 263 181 194 246 217 220 237 Exchange and association dues 128 117 100 176 205 138 162
Slide 30: Trends in Revenue
Trends in Revenue ■Net operating revenue and operating income ■ROE and profit margin* trends Total trading value of individual 60.0% investors in 3 major stock exchanges billion yen 5 3 .2% Million yen （Average per business day）（right） 4 8 .2% 10,000 700 50.0% Profit margin ROE 9,000 Net operating r
Slide 31: Equity Business / FX Business
Equity Business / FX Business ■Equity /Futures/Options Business ■FX Business ◆Equity Revenue (million yen) Trading volume (billion yen) Market share of Ex-Monex account and the Ex-Orix account after the merger 800 trading revenue 3,500 （2010/5/6～2011/3/18: Weekly） (billion yen) Margin transaction ba
Slide 32: Mutual Fund Business / Alternative Investment Business
Mutual Fund Business / Alternative Investment Business ■Mutual Fund Business ■ Big leap for top Alternative Investment Manager ◆ Sales in 4Q increased and balance increased by 22% YtoY (Billion yen) 2010.3 2011.3 ◆ Merger with Asuka Commodity Investments on Feb 1 1Ｑ 2Ｑ 3Ｑ 4Ｑ 1Ｑ 2Ｑ 3Ｑ 4Ｑ ・ With merge
Slide 33: Customer Portfolio
Customer Portfolio ■ Sex / District( Monex, Inc.) ■Customers’asset in custody (Monex Group) Others (MRF, etc.） Others Fixed income 2％ Female 19％ Tokyo Metropolitan District FX 3％ Nagoya District Male Managed assets (mutual funds, etc） Equities 10％ 66％ Osaka District ■ Age ( Monex, Inc.) ■ Occupation
Slide 34: Investors' Guide
Investors’ Guide ■Pursuing investment returns for our shareholders ◆Basic policy for shareholder’s return Major shareholders and share distribution - The Company’s policy for shareholder’s return is to pay the - Total number of issued shares as of end of Mar. 2011: dividends based on the business p
Slide 35: The Monex Group
The Monex Group Holding Company （As of April 27, 2011） [ Financial products and services for individual investors ] [ Overseas subsidiary and office ] Securities Company FX Business Overseas Businesses Monex International Limited Asia business base in Hong Kong （Investment Ratio) Monex G: 100% Monex