Monex Group, Inc. · TSE:8698
Monex — SPAC Merger (January 2023)
31 slides from Monex's SPAC merger presentation, Jan 31, 2023
Slide 1: Financial Results for 3Q of Fiscal Year Ending March 31, 2023
Financial Results for 3Q of Fiscal Year Ending March 31, 2023 January 30, 202 3 Monex Group TSE Prime : 8698
Slide 2: Corporate Philosophy
Always a step ahead of the “Y” in “MONEY,” our name MONEX expresses our desire to embrace all people who are engaged at the forefront of our future. With state - of - the - art IT technology, globally universal values and a sense of professionalism, Monex Group designs innovative ways of managing mo
Slide 3: 1. Highlights
MONEX GROUP 1. Highlights
Slide 4: Quarterly Operating Income (Three Major Segments)
Quarterly Operating Income (Three Major Segments ) Operating income in the US Segment (TradeStation) has improved significantly since the strategy change in August 2022. Going forward, in addition to the steady earnings of the Japan and US Segment, the Crypto Asset Segment has profit upside potentia
Slide 5: Consolidated Pre-tax Income (3Q vs 2Q of FYE Mar. 31, 2023)
Consolidated Pre - tax Income (3Q vs 2Q of FYE Mar. 31, 2023) Increased operating income of the online brokerage businesses in Japan and US driven by higher interest rate and favorable forex market. The US dollar cash position held by the holding company Monex Group resulted in a quarterly loss due
Slide 6: Financial Interest Impact and Advertising Expenses
Financial Interest Impact and A dvertising Expenses Advertising expense 3Q of FYE Mar., 2022 → 3Q of FYE Mar., 2023 US \ 2,548M → \ 1,103M ($23M → $8M ) Crypto Asset \ 1,992M → \ 214M Advertising expenses The US Segment curbed advertising expenses due to a change in strategy. The Crypto Asset Segmen
Slide 7: Projected Value of Monex Group
Projected Value of Monex Group Aim to realize the Group’s projected equity value by manifesting the potential value of major subsidiaries and by steadily implementing growth strategies at each company. (JPY Billion) With the listing in US market, aims to manifest the corporate value of CCG Approx. \
Slide 8: Risk Management of Monex Group regarding the Crypto Business
Monex Group conducts adequate risk management on the group - wide crypto asset related businesses. Risk Management of Monex Group regarding the Crypto Business • Management of Position/Exposure Almost no crypto - related proprietary position for sales gain purposes in each subsidiary. • Appropriate
Slide 9: II. Consolidated Performance
Ⅱ . Consolidated Performance
Slide 10: Highlights 3Q of FYE Mar. 2023 (3 months)
Highlights 3Q of FYE Mar. 2023 (3 months) The Japan Segment generates stable profit and the US Segment improved profitability, offsetting the decline of profit in the Crypto Asset Segment. Consolidated pre - tax income in 3Q was \ 385M . Japan US Crypto Asset Asia Pacific Investment * Segment profit
Slide 11: QoQ Comparison (3 months) Consolidated Performance
QoQ Comparison (3 months) Consolidated Performance (JPY million) FYE Mar. 2023 2Q (Jul. 2022 – Sep. 2022) FYE Mar. 202 3 3Q (Oct. 202 2 – Dec. 20 22 ) Variance Rate of change Reference Total operating revenue after deducting financial expenses and cost of sales 18,513 18,072 - 441 - 2% P15: Analysis
Slide 12: QoQ Comparison (3 months) Segment Performance
QoQ Comparison (3 months) Segment Performance (JPY million) Japan US Crypto Asset Asia Pacific Investment 2023/3 2Q 2023/3 3Q 2023/3 2Q 2023/3 3Q 2023/3 2Q 2023/3 3Q 2023/3 2Q 2023/3 3Q 2023/3 2Q 2023/3 3Q Total operating revenue after deducting financial expenses and cost of sales 7,744 8,262 8,912
Slide 13: QoQ Comparison (3 months) Analysis: Operating Revenue
QoQ Comparison (3 months) Analysis: Operating Revenue Crypto: Total revenue decrease driven by a reduction in net trading income as trading volumes were meaningfully impacted by broader crypto market decline. Quarterly total operating revenue after deducting financial expenses and cost of sales - 32
Slide 14: QoQ Comparison (3 months) Analysis: SG&A
QoQ Comparison (3 months) Analysis: SG&A Crypto: Total SG&A expenses decreased QoQ as a result of advertising budget management in response to current market conditions, resulting in a decrease in SG&A. SG&A Total - 4.8 ％ ( - 91 ) * Professional fees related De - SPAC: \ 214M (+47) ■ Other (+36 ) *
Slide 15: YoY Comparison (9 months) Consolidated Performance
YoY Comparison (9 months) Consolidated Performance (JPY million) FYE Mar. 202 2 3Q (Apr. – Dec . 20 21 ) FYE Mar. 202 3 3Q (Apr. – Dec . 20 22 ) Variance Rate of change Reference Total operating revenue after deducting financial expenses and cost of sales 65,937 54,283 - 11,655 - 18% P23: Analysis o
Slide 16: YoY Comparison (9 months) Segment Performance
YoY Comparison (9 months) Segment Performance (JPY million) Japan US Crypto Asset Asia Pacific Investment 2022/3 3Q 2023/3 3Q 2022/3 3Q 2023/3 3Q 2022/3 3Q 2023/3 3Q 2022/3 3Q 2023/3 3Q 2022/3 3Q 2023/3 3Q Total operating revenue after deducting financial expenses and cost of sales 22,615 23,351 17,
Slide 17: YoY Comparison (9 months) Analysis: Operating Revenue
YoY Comparison (9 months) Analysis: Operating Revenue Crypto: Significant decrease in net trading income due to lower trading volumes resulting from the decline in crypto asset values and market transaction volume. * (JPY million) ■ Other ( - 509) ■ Net trading income ( - 19,166) * Total operating r
Slide 18: YoY Comparison (9 months) Analysis: SG&A
YoY Comparison (9 months) Analysis: SG&A Crypto: Advertising expenses decreased by about 75% YoY, by controlling advertising budget in response to current market conditions. SG&A Total - 39.9 ％ ( - 4,224 ) ■ Other ( - 525 ) * ■ Advertising expenses ( - 3,506) ■ Communication, freight and information
Slide 19: III. Business Update
MONEX GROUP. Il. Business Update
Slide 20: Business Update Crypto Asset Segment 1/5
Business Update Crypto Asset Segment 1/5 Source: CoinMarketCap ; News articles; FactSet Note: Volume figures in USD converted to JPY based on exchange rate of 129.61 as of 1/26/2023 0.0 2.5 5.0 7.5 10.0 12.5 Jan-21 May-21 Sep-21 Jan-22 May-22 Sep-22 Jan-23 BTC 30-day average volume (JPY trillion) 12
Slide 21: Business Update Crypto Asset Segment 2/5
Business Update Crypto Asset Segment 2/5 No.1 share of app downloads for 4 consecutive years in Japan. Crypto asset exchange / marketplace *1 Among Japanese crypto asset exchange apps. Term: 2019 - 2022 . Data source: AppTweak *2 Monthly crypto asset trading status table of JVCEA. As of Nov. 30, 202
Slide 22: Business Update Crypto Asset Segment 3/5
Plan to create a digital asset ecosystem to diversify its earnings over the mid to long term. Business Update Crypto Asset Segment 3/5 B2B IEO NFT web3 And more… Exchange/ Marketplace Digital Asset Ecosystem Coincheck NFT (β ） Leverage the customer base of Coincheck, a crypto asset trading platform,
Slide 23: Business Update Crypto Asset Segment 4/5
Business Update Crypto Asset Segment 4/5 Coincheck Group (CCG) *1 is proceeding with listing procedures. - After the proposed business combination with Nasdaq - listed SPAC, Thunder Bridge Capital Partners IV, Inc. (THCP), CCG will be a public company listed on the Nasdaq exchange in the U.S. (Termi
Slide 24: Business Update Crypto Asset Segment 5/5
Business Update Crypto Asset Segment 5/5 Coincheck has identified numerous large growth opportunities that can be pursued organically and accelerated through M&A and partnerships. NFTs Financial services adjacencies Marketplace / IEO Continue to grow customer base and revenue to retain #1 market sha
Slide 25: Appendix: Group Overview
MONEX GROUP Appendix: Group Overview
Slide 26: Appendix: Highlights 3Q of FYE Mar. 2023 (3 months) 2/3
Appendix: Highlights 3 Q of FYE Mar. 2023 (3 months) 2/3 Crypto Asset US ◆ Total operating revenue after deducting financial expenses and cost of sales, and Segment profit (JPY Million) 5,027 3,160 3,162 1,563 1,063 1,116 - 1,072 415 - 391 - 748 -5,000 0 5,000 10,000 2022/3 3Q 2022/3 4Q 2023/3 1Q 20
Slide 27: Group subsidiaries: Coincheck, Monex Boom Securities and others
■ Coincheck, Inc. (Tokyo, Japan) Crypto asset Exchange/Marketplace agency • President: Satoshi Hasuo • Founded in 2012, joined Monex Group in Apr. 2018 • Cryptocurrencies available: Bitcoin (BTC), Ethereum (ETH), Ethereum Classic (ETC), Ripple (XRP), NEM (XEM), etc. • # of verified users: 1.78 milli
Slide 28: Group Overview
Group Overview of the Group Monex International Limited Intermediate holding company Online Brokerage Monex Boom Securities (H.K.) Limited ( HK ) Online Brokerage TradeStation Securities, Inc. Brokerage firm catering to active traders (US) TradeStation Group, Inc. Intermediate Holding Company (US) T
Slide 29: Group Overview - Revenues, Costs, and Employees
Group Overview - Revenues , Costs, and Employees ■ Japan Segment ■ US Segment ■ Crypto Asset Segment ■ Asia Pacific Segment ■ Investment Segment * Refer to the databook for FYE Mar 2022 Total operating revenue after deducting financial expenses \ 83.6 B 36 % 28 % 34 % 1 % 1 % Selling, general and ad
Slide 30: Disclaimer About Coincheck
Disclaimer About Coincheck Important Information About the Business Combination and Where to Find It In connection with the proposed business combination in connection with to the business combination agreement among Coincheck , I nc. (“Coincheck”), Coincheck Group B.V. (“CCG”), Thunder Bridge Capit
Slide 31: © Monex Group, Inc.
© Monex Group, Inc. www.monexgroup.jp/