Monex Group, Inc. · TSE:8698
Monex — FY2002 Earnings Presentation
25 slides from Monex's earnings presentation, Apr 19, 2002
Slide 1: FYE 03/2002 Financial Results
FYE 03/2002 Financial Results April 19, 2002 Forward-looking Statements Statements made at this presentation and in this material include forward-looking statements that are based on our current expectations, assumptions, estimates and projections about our business and the industry. These forward-l
Slide 2: I. Financial results
MONEX Motes. Inve I . Financial results
Slide 3: Financial Summary of FYE 03/2002
Financial Summary of FYE 03/2002 (unit: million yen) FYE 03/2001 FYE 03/2002 change Operating revenue 2,999 3,281 +9.4% (Commission revenue） 2,946 3,222 +9.4% Operating expense 3,679 4,516 +22.8% Operating loss 679 1,236 - Ordinary loss 790 1,200 - Net loss 840 1,406 - Note) P/L of Saison Securities
Slide 4: Financial Summary – 4Q
Financial Summary – 4Q ） (unit: million yen） FYE 03/2001 FYE 03/2002 4Q 4Q Changes Operating ｒevenue 752 794 +5.5% (Commission revenue） 730 780 +6.9% Operating expense 891 1,142 +28.1% Operating loss 139 349 - Ordinary loss 139 348 - Net loss 152 484 - FYE 03/2002 FYE 03/2002 3Q 4Q Changes Operating
Slide 5: Operating Revenue vs. Sales and General Administrative Expenses
Operating Revenue vs. Sales and General Administrative Expenses FYE 03 / 2001 FYE 03/2002 (million yen) 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Operating Revenue (1) 647 850 748 752 942 764 779 794 Sales and administrative expenses (2) 848 1,015 923 891 974 1,182 1,217 1,137 (1) / (2) 76% 84% 81% 84% 98% 65% 64% 70
Slide 6: Break-Even Analysis – Spreadsheet
Break- Break-Even Analysis – Spreadsheet 1. Divide major items of SG & A into 2 categories (1) Variable (trade volume and number of accounts base) and (2) Fixed. (unit: million yen） After excluding one-time cost, Outsourcing Expenses are divided into three categories. ＦＹＥ 0 3. 2 0 0 1 FYE 0 3 . 2 0
Slide 7: Break-Even Analysis – Number of Trade
Break- Break-Even Analysis – Number of Trade 2Q: -One- One-time cost and fixed cost rose Expenses （million yen) number of trades (000) due to strategic investments and merger related expenses. 1,000 867 3Q: 2,000 822 791 -In line with the increase in the 800 number of clients’ clients’ accounts, (1)
Slide 8: Break-Even Analysis – Executed Deal Ratio
Break- Break-Even Analysis – Executed Deal Ratio B/E executed deal ratio and Nikkei 225 avg. 20% 18% 16% 14% executed deal ratio 12% 10% 8% 6% 4% 2% (B/E executed deal ratio) = (B/E number of executed deals) / (Number of accounts) (Actual executed deal ratio) = (Actual number of executed deals) / (N
Slide 9: Share Price Movement
Share Price Movement Monex share price vs. Nikkei 225 average index (August 4, 2000 as a base) 200 180 160 Monex share (Aug. 4, 2000=100) 140 Nkkei 225 avg. index (closing price Aug. 4, 2000 = 100) 120 8626 Aug. 4, 2000 IPO price （Closing price of Aug. 4, 2000＝100） 100 80 60 Price movement from Aug.
Slide 10: II. Business other than stock brokerage
Ⅱ. Business other than stock brokerage 9
Slide 11: Number of customers' accounts
0 50,000 100,000 150,000 200,000 250,000 04 /0 0 05 /0 0 06 /0 0 07 number of accounts /0 0 08 /0 0 09 /0 0 10 Number of customers’ /0 0 11 /0 0 12 /0 0 01 /0 1 02 customers’ accounts /0 1 03 /0 1 04 /0 1 05 /0 1 06 /0 1 07 /0 1 08 /0 1 09 /0 1 10 /0 1 11 /0 1 12 /0 1 01 /0 2 02 /0 2 03 DLJ /0 2 Mon
Slide 12: Account acquiring cost
Account acquiring cost Newly acquired accounts 44,270 accounts 30,000 transferred from Saison 20,000 10,000 Securities are not 0 included in new FYE 03/2000 2Q 4Q 2Q 4Q (average) accounts acquired in the 1Q in FYE 03/2002. FYE 03/2001 FYE 03/2002 Advertising Cost (thousand yen) 60,000 40,000 20,000
Slide 13: Customers' assets in Custody
Customers’ Customers’ assets in Custody （yen） （billion yen） Nikkei 225 avg. index 15,000 12,000 447.0 418.4 402.1 9,000 374.5 76.1 64.4 63.4 291.9 66.0 55.5 318.5 303.1 334.1 274.5 222.6 MRF and IT 3/2001 6/2001 9/2001 12/2001 3/2002 Stocks IT (excl. MRF) ＭＲＦ Others Transfer from Saison Securities （
Slide 14: Investment Trust Business
Investment Trust Business Outstanding (billion yen) Number of orders 80 889 1000 70 879 900 839 792 773 800 60 760 833 700 646 643 50 600 470 40 405 500 30.5 30 29.7 30.2 30.3 29.7 30.4 31.4 421 28.7 30 400 31 307 300 20 13 13.9 14.6 200 10 100 8.2 8.2 11.6 11 10.3 9.5 10.3 10.7 10.6 10.3 10.6 11.1
Slide 15: Underwriting business
Underwriting business IPO market: Compared to last FY, 42% down in amount, and 10% down in number of IPO issues ・Number of underwriting Monex: Underwriting: number of issues Monex: Underwriting (total amount; million) increased by 125% ・Acquired large shares in 36 underwriting of Konami 139 Computer
Slide 16: III. Business Plan
MONEX Motes. Inve Il. Business Plan
Slide 17: Monex's Business Model
Monex’ Monex’s Business Model Trade Activity ： high Others’ target segment Re = (P E 1 + P E 2 ) - Expenses Other online Re:Expected return brokers’ customers P: Probability of our scenario P: Probability of the other scenario E1: Earnings under our scenario Assets: Small ： Large Assets： E2: Earning
Slide 18: M&A
M&A Re = P E 1 ＋P E 2 – Exp. "Studying the merger with other competitors "Basic concepts for possible mergers: ・Obtain larger earning opportunity ・Save costs by economies of scale ・Strengthen earning capabilities by obtaining bargaining power in price negotiations ・Create Opposition party against ex
Slide 19: Margin Trading
Margin Trading Re = P E 1 ＋P E 2 – Exp. Study of Margin Trading ⇒ Suspend the final decision due to the following: "Price control To find out if Price control for “short sale” would apply to “margin trading”, and in that case, what the exceptional case would be. "Study the possible merger of other c
Slide 20: Daily number of trades and customers' assets
Ｅ1 Yen Daily number of trades index (as of April 200 = 100) and Nikkei 225 aveg. Index 300 Monex 275 16000 Re = P E 1 ＋P E 2 – Exp. DLJ 14000 250 E*Trade Daily average number of trades and TSE individuals trading volume index Matsui TSE individual trade volume 12000 (Jan2002 = 100) Nikkei 225 avg. i
Slide 21: Asset Planning Dept.: plan (1)
Asset Planning Dept.: plan (1) Re = P E 1 ＋P E 2 – Exp. Account aggregation “Money Station” ・ Increase number of financial institutions connected to Money Station; currently connected to Shinsei bank, Mizuho Bank, Credit Saison Financial Advice Tool Introduce “e-Advice” ・Integrate the data from Mone
Slide 22: Asset Planning Dept.: Plan (2)
Asset Planning Dept. : Plan (2) Others Re = P E 1 ＋P E 2 – Exp. Obtain real-time portfolio C r ed i t S a i s on Shinsei Bank M o n e y S t a t i o n Provide efficient financial （Account Aggregation management tool Mizuho Bank e A d v i s e Difference bet. Exiting and Optimal portfolio Buy stocks an
Slide 23: Asset Planning Dept. – Plan (3)
Asset Planning Dept. – Plan (3) Propose new type of investment Re = P E 1 ＋P E 2 – Exp. Combination of virtually no-loaded “Bear fund” and stocks whose performance –the investor believes- would outperform the market, would generate “market neutral” performance on the stocks. ①Stocks portfolio： Inves
Slide 24: Expenses
Expenses "Charging information services Re = P E 1 ＋P E 2 – Exp. ・Started negotiation with information providers in order to obtain a new fee structure which is based on volume rather than number of accounts ⇒ Decided not to charge information services to our customers at this time ・Still exists a p
Slide 25: http://www.monex.co.jp/
MONEX http://www.monex.co,jp/