Monex Group, Inc. · TSE:8698
Monex — Q1 FYE 03/2005 Earnings Presentation
32 slides from Monex's earnings presentation, Jul 16, 2004
Slide 1: FYE 03/2005 1Q Financial Results
FYE 03/2005 1Q Financial Results July 16, 2004 This is an English translation of Japanese presentation material prepared for IR conference held on the above date; it includes the information on non-consolidated financial summary under Japanese GAAP for FYE March 2005. If there is any discrepancy bet
Slide 2: 1. Financial Results and Business Overview; 2. Business Model and Future Development
1. Financial Results and Business Overview 2. Business Model and Future Development 1
Slide 3: Financial Summary FYE 03/2004 1Q vs. FYE 03/2005 1Q
Monex Financial Summary FYE 03/2004 1Q vs. FYE 03/2005 1Q (in million yen, %) FYE 03/2004 1Q FYE 03/2005 1Q Change (3 months) (3 months) Operating Revenue 1,252 3,081 146.1% Net Operating Revenue 1,164 2,896 148.7% SG&A 1,101 1,525 38.6% Operating Income 63 1,370 2073.2% Ordinary Income 66 1,381 197
Slide 4: Financial Summary FYE 03/2004 4Q vs. FYE 03/2005 1Q
Monex Financial Summary FYE 03/2004 4Q vs. FYE 03/2005 1Q (in million yen, %) FYE 03/2004 4Q FYE 03/2005 1Q Change (3 months) (3 months) Operating Revenue 2,552 3,081 20.7% Net Operating Revenue 2,490 2,896 16.3% SG&A 1,376 1,525 10.8% Operating Income 1,113 1,370 23.0% Ordinary Income 1,112 1,381 2
Slide 5: Net Operating Revenue vs. SG&A
Monex Net Operating Revenue vs. SG&A (in million yen) Net Operating Revenue 2,896 SG&A 2,490 1,885 1,979 1,164 1,180 1,263 1,376 1,525 1,101 FYE 03/2004 FYE 03/2005 1Q 2Q 3Q 4Q 1Q Net Operating Revenue Breakdown SG&A Breakdown 100% = 2,896 (in million yen) 100% = 1,525 (in million yen) Equipment Lea
Slide 6: Break-even Analysis Spreadsheet
Monex Break-even Analysis Spreadsheet FYE 03/2004 FYE 03/2005 1Q 2Q 3Q 4Q 1Q 1. Net Operating Revenue Breakdown (in million yen) Brokerage 908 1,481 1,505 1,768 2,192 Monex FX 80 158 165 249 286 Underwriting 19 36 61 145 30 Financial Income(*), Trading Income and Other Service Revenues 84 97 144 166
Slide 7: Break-even Analysis – Number of Trades
Monex Break-even Analysis – Number of Trades Actual number of trades Break-even number of trades (thousands) 1,493 1,218 642 1,004 1,014 416 420 267 337 587 (in million yen) 421 342 283 167 278 980 1,034 1,104 934 902 722 704 Revenue excluding 404 474 brokerage 256 commissions is over 03/2004 1 2 3
Slide 8: Financial Summary: FYE 03/2004 1Q vs. FYE 03/2005 1Q (Nikko Beans)
Nikko Beans Financial Summary : FYE 03/2004 1Q vs. FYE 03/2005 1Q (in million yen, %) FYE 03/2004 1Q FYE 03/2005 1Q Change (3 months) (3 months) Operating Revenue 1,103 2,682 143.2% Net Operating Revenue 1,023 2,544 148.2% SG&A 766 1,280 67.1% Operating Income 257 1,263 391.1% Ordinary Income 252 1,
Slide 9: Financial Summary: FYE 03/2004 4Q vs. FYE 03/2005 1Q (Nikko Beans)
Nikko Beans Financial Summary : FYE 03/2004 4Q vs. FYE 03/2005 1Q (in million yen, %) FYE 03/2004 4Q FYE 03/2005 1Q Change (3 months) (3 months) Operating Revenue 2,531 2,682 6.0% Net Operating Revenue 2,416 2,544 5.3% SG&A 1,327 1,280 (3.5%) Operating Income 1,089 1,263 16.0% Ordinary Income 1,089
Slide 10: Net Operating Revenue vs. SG&A (Nikko Beans)
Nikko Beans Net Operating Revenue vs. SG&A (in million yen) 2,544 Net Operating Revenue 2,416 SG&A 1,758 1,719 1,023 1,327 1,280 766 929 1,014 FYE 03/2004 FYE 03/2005 1Q 2Q 3Q 4Q 1Q Net Operating Revenue Breakdown SG&A Breakdown 100% 2,544 (in million yen) 100% 1,280 (in million yen) 34 52 67 Broker
Slide 11: Break-even Analysis Spreadsheet (Nikko Beans)
Nikko Beans Break-even Analysis Spreadsheet FYE 03/2004 FYE 03/2005 1Q 2Q 3Q 4Q 1Q 1. Net Operating Revenue Breakdown (in million yen) Brokerage 832 1,483 1,386 2,008 2,098 Monex FX 32 53 52 69 52 Underwriting 0 0 0 0 0 Financial Income(*), Trading Income and Other Service Revenues 102 160 212 259 3
Slide 12: Break-even Analysis – Number of Trades (Nikko Beans)
Nikko Beans Break-even Analysis – Number of Trades (thousands) Actual number of trades Break-even number of trades 1,754 1,350 1,114 1,062 797 372 415 408 319 482 436 451 (in million yen) 301 322 181 Revenue excluding 891 829 brokerage 585 607 713 333 408 446 commissions is over 191 275 50% of fixed
Slide 13: Financial Summary FYE 03/2005 1Q
Monex Beans Holdings (MBH) Financial Summary FYE 03/2005 1Q (04/2004 – 06/2004) (in million yen) Monex Nikko Beans MBH Operating Revenue 3,081 2,682 5,763 Net Operating Revenue 2,896 2,544 5,440 SG&A 1,525 1,280 2,805 Operating Income 1,370 1,263 2,633 Ordinary Income 1,381 1,264 2,645 Net Income 1,
Slide 14: Financial Summary: accounts and customer assets
Monex Beans Holdings (MBH) Financial Summary FYE 03/2005 1Q (as of June 30, 2004) Monex Nikko Beans MBH Number of accounts 264,457 116,633 381,090 Number of margin 8,403 6,442 14,845 trading accounts Average number of executed cash trades during this quarter 19,636 18,963 38,599 (per business day) A
Slide 15: Comparison with Others: Net Operating Revenue, SG&A and Ordinary Income
Monex Beans Holdings (MBH) Comparison with Others : Net Operating Revenue, SG&A and Ordinary Income FYE 03/2004 (04/2003 – 03/2004) (in 100 million yen) Source: Company Data on website 240 Net Operating Revenue SG&A 200 Ordinary Income 160 Information system costs 120 80 40 0 Matsui E*trade Rakuten
Slide 16: Comparison with Others: Number of accounts and Customers' assets in custody
Monex Beans Holdings (MBH) Comparison with Others : Number of accounts and Customers’ assets in custody Source: Company Data on website Number of accounts (as of June 30, 2004) Customers’ assets in custody (as of March 31, 2004) (thousand) (10 billion yen) Added amount 450 140 during FYE 2005 1Q 400
Slide 17: Trends of Customers' Assets in Custody
Monex Beans Holdings (MBH) Trends of Customers’ Assets in Custody Nikkei 225 Average 03/31/2004 06/30/2004 11,858.87 ¥13,000 Index 11,715.39 ¥10,000 04/01/2003 7,986.72 ¥7,000 13,911 12,734 13,911 Customers’ assets in custody 10,443 12,734 5,438 9,983 4,992 (100 million yen) 8,180 9,983 10,442 5,438
Slide 18: Mutual Funds Business (Monex + Nikko Beans)
Monex Beans Holdings (MBH) Mutual Funds Business (Monex + Nikko Beans) Monex Monexand andNikko NikkoBeans Beansprovide providestrictly strictlyselected selectedmutual mutualfunds. funds. (MBH) Number of trades per business day (excluding MRF) (Quarterly Average) 1,340 1,308 Customers’ assets in cust
Slide 19: Stock Lending Service (Monex only)
Monex Beans Holdings (MBH) Stock Lending Service (Monex only) The Theoutstanding outstandingbalance balanceisisover over30 30billion billionyen. yen. This Thisservice servicecontributed contributedtotodifferentiate differentiateour ourservices servicesfrom fromothers. others. Average Interest during
Slide 20: Margin Trading (Monex + Nikko Beans)
Monex Beans Holdings (MBH) Margin Trading (Monex + Nikko Beans) We Wepursue pursuethe thesynergy synergyofofboth bothcompanies companiesthrough throughproviding providingcustomer-oriented customer-orientedservices services (MBH) Number of trades per business day Monex plans to start trade notificati
Slide 21: Margin FOREX Trades (Monex FX + Beans FX)
Monex Beans Holdings (MBH) Margin FOREX Trades (Monex FX + Beans FX) Maintain Maintainsurpassing surpassingcustomer customerbase baseand andstrengthen strengtheneven evenmore. more. (MBH) Number of trades per business day 91 82 80 This service prevails particularly (hundred) 68 among Monex customers
Slide 22: Underwriting Business (Monex only)
Monex Beans Holdings (MBH) Underwriting Business (Monex only) We Weunderwrote underwroteplenty plentyofofIPO IPOand andPO POdeals dealsand andestablished establishedthe thebedrock bedrockfor forfurther furtherprogress. progress. IPO deals during FYE 03/2005 1Q Number of companies underwritten Underw
Slide 23: Royalty Services (Monex + Nikko Beans)
Monex Beans Holdings (MBH) Royalty Services (Monex + Nikko Beans) Provide Provideplentiful plentifulservice servicecontents contents(including (includingboth bothon-line on-lineand andoff-line off-linecontents) contents)&& serve serveall allour ourcustomers customerstotoenhance enhancetheir theirfin
Slide 24: New Services and Merger of Monex and Nikko Beans
Monex Beans Holdings (MBH) New Services and Merger of Monex and Nikko Beans Successive Successiveintroduction introductionofofnew newservices servicesand andproducts productsand andMerger MergerofofMonex Monexand and Nikko NikkoBeans Beans Monex Nikko Beans Nikkei 225 futures and options : 07/2004 A
Slide 25: 1. Financial Results and Business Overview; 2. Business Model and Future Development
1. Financial Results and Business Overview 2. Business Model and Future Development 24
Slide 26: Principles
Principles Provide the supreme financial services to individual customers Do away with misguided practice of the past Assume the role of creating new financial regime Dedicate ourselves to the interests of individual customers Maintain the customer-first policy Keep the transparency of business thro
Slide 27: Schedule
Schedule August August2,2,2004 2004: :Listing Listingofofstocks stocksofofMonex MonexBeans BeansHoldings, Holdings,Inc. Inc.totoTokyo TokyoStock StockExchange ExchangeMothers MothersMarket Market July 5, 2004 The most functions of Nikko Beans moved to the same floor with Monex and started their oper
Slide 28: Policy on System Integration Risks
Policy on System Integration Risks Reduce Reducesystem systemintegration integrationrisks risksthrough throughcomprehensive comprehensivepreparation preparationand andarrangement arrangement Place top priority on the absolute completion of integration Implement thorough testing and rehearsal Consoli
Slide 29: Promise to become the most credible financial institution
Promise Promise Promisetotobecome becomethe themost mostcredible crediblefinancial financialinstitution institution Promise to customers Promise to shareholders Continue to be a party Various of financial service ROE needs professionals Achieve the Broad range maximum and of customer continued prefe
Slide 30: Strategy for the Future
Strategy for the Future Heading Headingfor forthe thebest bestfinancial financialinstitution institution Successive Successive introduction introduction of of new new products products Expansion Expansion of of services services Creation Creationofofnew new • Provide investment solutions and financi
Slide 31: Building a platform to provide supreme financial services
Building a platform to provide supreme financial services to individual investors React Reactand andcorrespond corresponddynamically dynamicallytotothe themovements movementsofoflegal legalsystem, system,social socialand andeconomic economic environment and our customers’ demands environment and our
Slide 32: MONEX
MQNEX MONEX