Monex Group, Inc. · TSE:8698
Monex — Q1 FY2018 Earnings Presentation
31 slides from Monex's earnings presentation, Jul 28, 2017
Slide 1: Databook: Financial Results for 1Q of Fiscal Year Ended March 31, 2018
Juily 28, 2017 (TSE 1st Section: 8698) DATABOOK Financial Results for 1Q of Fiscal Year Ended March 31, 2018 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
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.30 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 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 Jun.30, 2015 Sep.30, 2015 Dec.31, 2015 Mar.31, 2016 Jun.30, 2016 Sep.
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 1,200 800 400 0 As of As of As of As of As of As of As of As of As of Jun.30, 2015 Sep.30, 2015 Dec.31, 2015 Mar.31, 2016 Jun.30, 2016 Sep.30, 2016 Dec.31, 2016 Mar.31, 2017 Jun.30, 2018 (p
Slide 6: Market and Transaction Data (3) – Japan Segment - 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 1,800,000 1,600,000 1,400,000 1,200,000 1,000,000 800,000 600,000 400,000 200,000 0 As of Jun. 30, As of Sep. 30, As of Dec. 31, As
Slide 7: Market and Transaction Data (4) Japan Segment - Equities and ETFs
Market and Transaction Data (4) Japan Segment - Monex, Inc. (Equities and ETFs ) ◆Market share and value of equity trading ◆ Breakdown of DARTs* and market trading value Monex’s share in retail trading value of 2 major stock exchanges and Futures and Options DARTs (left) (JPY 100million) its equity
Slide 8: Market and Transaction Data (5) Japan Segment - 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) 60,000 Sales of Investment Trusts(load) (le
Slide 9: Market and Transaction Data (6) Japan Segment - FX
Market and Transaction Data (6) Japan Segment - Monex, Inc. (FX) ◆OTC FX business (JPY million) (JPY 100million) 1,500 150,000 Commissions(left) Trading revenue(left) Trading value (right) 1,000 100,000 500 50,000 0 0 1Q of FYE 2Q of FYE 3Q of FYE 4Q of FYE 1Q of FYE 2Q of FYE 3Q of FYE 4Q of FYE 1Q
Slide 10: Market and Transaction Data (7) Japan Segment – 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) All accounts Accounts opened within a year 35% 35% Homemaker Civil servant Self-employed 30
Slide 11: Market and Transaction Data (8) Japan Segment - 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 As
Slide 12: Market and Transaction Data (9) U.S. Segment – TradeStation Group
Market and Transaction Data (9) U.S. Segment – TradeStation Group ◆ DARTs and VIX(*) （thousand） 150 Futures DARTs(left) Options DARTs(left) Equities DARTs(left) Vix Close Avg. (right) 30 100 20 50 10 0 0 1Q of FYE 2Q of FYE 3Q of FYE 4Q of FYE 1Q of FYE 2Q of FYE 3Q of FYE 4Q of FYE 1Q of FYE Mar. 2
Slide 13: Market and Transaction Data (10) Asia-Pacific Segment - Monex Boom Securities
Market and Transaction Data (10) Asia-Pacific Segment- Monex Boom Securities ◆ Numbers of accounts with balances ◆ DARTs (account) 12,000 3,000 10,000 8,000 2,000 6,000 4,000 1,000 2,000 0 0 As of Jun.As of Sep.As of Dec.As of Mar. As of Jun.As of Sep.As of Dec.As of Mar. As of Jun. 1Q of FYE 2Q of
Slide 14: 2. Financial Data
1. Market & Transaction Data 2. Financial Data 13
Slide 15: Introduction: Consolidated financial statements for 1Q FYE March 2018
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 focus of 3 major locations (Japan, the U.S. and AP(*) with a view to creating a global online financial group ■ Consolidated fina
Slide 16: Consolidated financial results
Consolidated financial results (JPY million) 1Q FYE Mar. 1Q FYE Mar. Variance Change 2017 2018 Commission received 6,807 6,884 77 1.1% Net trading income 1,309 883 -426 -32.5% Financial income 3,271 3,951 679 20.8% Other operating income 237 127 -110 -46.4% Total operating revenue 11,624 11,845 221
Slide 17: Consolidated financial results (Reclassified)
Consolidated financial results (Reclassified) Reclassified consolidated statement of income (JPY million) 1Q FYE Mar. 2017 1Q FYE Mar. 2018 Variance Change Brokerage commissions 5,333 5,247 -85 -1.6% Stocks and ETFs 3,662 3,736 74 2.0% Options and Futures 1,671 1,511 -159 -9.5% Underwriting and dist
Slide 18: Consolidated financial results (SG&A)
Consolidated financial results (SG&A) The details of SG&A in consolidated statement of income (JPY million) 1Q FYE Mar. 2017 1Q FYE Mar. 2018 Variance Change Transaction-related expenses 2,837 3,000 162 5.7% Commissions paid 1,087 981 -106 -9.8% Exchange and association dues 229 215 -14 -6.2% Commun
Slide 19: Quarterly consolidated financial results
Quarterly consolidated financial results (JPY million) FYE Mar. 2017 FYE Mar. 2018 1Q 2Q 3Q 4Q 1Q Commission received 6,807 6,096 6,763 6,683 6,884 Net trading income 1,309 1,076 1,061 1,051 883 Financial income 3,271 3,090 3,466 4,486 3,951 Other operating income 237 164 133 137 127 Total operating
Slide 20: Quarterly consolidated financial results (Reclassified)
Quarterly consolidated financial results (Reclassified) Reclassified consolidated statement of income (JPY million) FYE Mar. 2017 FYE Mar. 2018 1Q 2Q 3Q 4Q 1Q Brokerage commissions 5,333 4,642 5,210 4,956 5,247 Stocks and ETFs 3,662 3,266 3,761 3,504 3,736 Options and Futures 1,671 1,376 1,449 1,452
Slide 21: 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. 2017 FYE Mar. 2018 1Q 2Q 3Q 4Q 1Q Transaction-related expenses 2,837 2,630 2,856 2,958 3,000 Commissions paid 1,087 981 1,012 1,034 981 Exchange and association dues 229 197
Slide 22: Quarterly consolidated financial results (Other income and other expenses)
Quarterly consolidated financial results (Other income and other expenses) (JPY million) FYE Mar. 2017 FYE Mar. 2018 1Q 2Q 3Q 4Q 1Q Other financial income 355 288 1,012 12 336 Gain on sales of investments in securities - - 83 73 0 Gain on redemption of investment securities - - 72 - - Dividends inco
Slide 23: Quarterly financial results by segment
Quarterly financial results by segment (JPY million) FYE Mar. 2016 FYE Mar. 2017 FYE Mar. 2018 4Q 1Q 2Q 3Q 4Q 1Q JPN U.S. AP JPN U.S. AP JPN U.S. AP JPN U.S. AP JPN U.S. AP JPN U.S. AP Commission received 4,297 3,084 90 3,953 2,807 74 3,548 2,487 86 4,014 2,697 83 3,752 2,866 105 3,894 2,908 139 Net
Slide 24: Quarterly financial results by segment (Reclassified)
Quarterly financial results by segment (Reclassified) Reclassified statement of income (JPY million) FYE Mar. 2016 FYE Mar. 2017 FYE Mar. 2018 4Q 1Q 2Q 3Q 4Q 1Q JPN U.S. AP JPN U.S. AP JPN U.S. AP JPN U.S. AP JPN U.S. AP JPN U.S. AP Brokerage commissions 3,513 2,265 90 3,274 2,012 74 2,890 1,692 86
Slide 25: Quarterly financial results by segment (SG&A)
Quarterly financial results by segment (SG&A) The details of SG&A in statement of income (JPY million) FYE Mar. 2016 FYE Mar. 2017 FYE Mar. 2018 4Q 1Q 2Q 3Q 4Q 1Q JPN U.S. AP JPN U.S. AP JPN U.S. AP JPN U.S. AP JPN U.S. AP JPN U.S. AP Transaction-related expenses 1,381 2,040 47 1,320 1,502 46 1,266
Slide 26: Quarterly financial results by segment (Other income and other expenses)
Quarterly financial results by segment (Other income and other expenses) (JPY million) FYE Mar. 2016 FYE Mar. 2017 FYE Mar. 2018 4Q 1Q 2Q 3Q 4Q 1Q JPN U.S. AP JPN U.S. AP JPN U.S. AP JPN U.S. AP JPN U.S. AP JPN U.S. AP Gain or loss on Financial 21 -111 - -215 -12 - 45 -17 - 296 30 - -218 10 - 44 - -
Slide 27: U.S. Segment: Quarterly financial results (Reclassified) (in USD)
U.S. Segment :Quarterly financial results (Reclassified) (in USD) Reclassified statement of income (USD thousand) FYE Mar. FYE Mar. 2017 2018 1Q 2Q 3Q 4Q 1Q Brokerage commissions 18,589 16,453 16,193 16,573 17,067 Stocks and ETFs 4,412 4,058 4,059 4,442 4,255 Options and Futures 14,177 12,395 12,134
Slide 28: U.S. Segment: Quarterly financial results (SG&A) (in USD)
U.S. Segment :Quarterly financial results (SG&A) (in USD) The details of SG&A in statement of income (USD thousand) FYE Mar. 2017 FYE Mar. 2018 1Q 2Q 3Q 4Q 1Q Transaction-related expenses 13,875 12,974 13,046 14,094 15,538 Commissions paid 7,502 6,902 6,547 6,324 6,283 Exchange and association dues
Slide 29: Consolidated statement of financial position (1)
Consolidated statement of financial position (1) ■Assets (JPY million) As of As of As of As of Mar. 31, 2017 Jun. 30, 2017 Mar. 31, 2017 Jun. 30, 2017 Cash and cash equivalents 77,900 122,936 Property and equipment 2,062 2,400 Cash segregated as deposits 552,028 564,068 Intangible assets 53,751 53,2
Slide 30: Consolidated statement of financial position (2)
Consolidated statement of financial position (2) ■Liabilities ■Equity (JPY million) As of As of As of As of Mar. 31, 2017 Jun. 30, 2017 Mar. 31, 2017 Jun. 30, 2017 Trading securities and other - 100 Common stock 10,394 10,394 Derivative liabilities 5,828 7,137 Additional-paid in capital 40,547 40,51
Slide 31: Consolidated statement of financial position (3)
Consolidated statement of financial position (3) ■Investments in securities (JPY million) As of Mar. As of Jun. measurement method Description 31, 2017 30, 2017 Investments in securities 3,611 3,844 Fair Value Through Profit or Loss Quoted prices (unadjusted) in active markets for identical - - asse