Slide 1: FYE 03/2004 Financial Results
FYE 03/2004 Financial Results April 21, 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 2004. If there is any discrepancy betwe
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 03/2003 vs. FYE 03/2004
Financial Summary FYE 03/2003 vs. FYE 03/2004 (in million yen, %) FYE 03/2003 FYE 03/2004 Change Operating Revenue 2,766 7,800 182.0％ Net Operating Revenue 2,712 7,519 177.2％ SG&A 4,477 4,921 9.9％ Operating Income (Loss) △ 1,765 2,597 - Ordinary Income (Loss) △ 1,758 2,604 - Net Income (Loss) △ 2,04
Slide 4: Financial Summary FYE 03/2004 3Q vs. 4Q
Financial Summary FYE 03/2004 3Q vs. FYE 03/2004 4Q (in million yen, %) FYE 03/2004 3Q FYE 03/2004 4Q Change Operating Revenue 2,065 2,552 23.6% Net Operating Revenue 1,979 2,490 25.8% SG&A 1,263 1,376 8.9% Operating Income 715 1,113 55.7% Ordinary Income 718 1,112 54.7% Net Income 679 833 22.7% （10
Slide 5: Net Operating Revenue vs. SG&A
Net Operating Revenue vs. SG&A (in million yen) 2,490 Net Operating Revenue 1,885 1,979 SG &A 1,164 811 641 601 658 1,148 1,136 1,180 1,263 1,376 1,099 1,093 1,101 FYE 03/2003 FYE 03/2004 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Net Operating Revenue Breakdown (in million yen) SG&A Breakdown (in million yen) 100% =
Slide 6: Break-even Analysis Spreadsheet
Break-even Analysis Spreadsheet FYE 03/2003 FYE 03/2004 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1.Net Oprtating Revenue Breakdown (in million yen) Brokerage 726 551 525 551 908 1,481 1,505 1,768 Monex FX Revenue 0 0 0 0 80 158 165 249 Underwriting (IPO) Revenue 14 19 16 11 19 36 61 145 Financial Income(*), Trading
Slide 7: Break-even Analysis – Number of Trades
Break-even Analysis – Number of Trades (thousands) Actual number of trades Break-even number of trades 1,218 774 775 809 1,014 751 1,004 642 587 416 420 267 482 415 372 362 (in million yen) 342 123 93 283 89 93 167 278 1,025 1,043 1,010 1,000 980 1,034 934 902 722 474 Revenue excluding 85 90 76 107
Slide 8: Net Operating Revenue Diversification
Net Operating Revenue Diversification (in million yen) 1,200 Others Monex FX 1,000 Financial Income Brokerage (Margin) Underwriting (IPO) 800 Investment Trusts Brokerage (Cash) 600 Leasing Fee Information Costs Personnel Expenses 400 Outsourcing Expenses Other SG&A 200 0 Operating Income -200 -400 -
Slide 9: Comparison with other online brokerage firms: Number of Executed Trades
Comparison with other online brokerage firms：Number of Executed Trades Stock brokerage growth in number of trades (04/2003 = 100) 330 Monex 280 Nikko Beans Matsui E*trade 230 DLJ Kabu.com 180 130 80 4 3 3 3 3 3 4 4 3 00 00 00 00 00 00 00 00 3 3 3 00 00 00 00 /2 /2 /2 /2 /2 /2 /2 /2 /2 /2 /2 /2 01 04
Slide 10: Customers' assets in custody
Customers’ assets in custody 03/31/2004 ¥13,000 06/28/2002 Nikkei 225 Average Index 11,715.39 10,621.84 ¥10,000 03/31/2003 7,972.71 ¥7,000 7,742 Clients’ assets in custody (100 million yen) Abundant cash equivalents have resulted in the purchasing 6,265 1,257 power of new investment targets such as
Slide 11: Margin Trading
Margin Trading Number Numberofofexecuted executedtrades tradesand andoutstanding outstandingbalance balancehave haveincreased increasedsmoothly. smoothly. We Weexpect expectthis thisfavorable favorablemovement movementtotocontinue. continue. 信用取引口座数および信用取引残高 8,000 400 Balance of margin trading ( 100
Slide 12: Stock Lending Service
Stock Lending Service This Thisunique uniqueservice servicecontributes contributestotomultiplying multiplying financial financialincome, income,and andprevailed prevailedasasaavalue-added value-addedservice. service. ■Number of accounts : 5,707 5,629 6,000 (approximated) Portfolio : over 29 billion
Slide 13: Investment Trusts Business
Investment Trusts Business AAwide widerange rangeofofproducts productsand andservices servicessuitable suitablefor forour ourvarious variousclients clientsled ledtotothe thesteady steadygrowth. growth. Number of trades per business day (excluding MRF) Onshore Bond Funds Outstanding Balance of Invest
Slide 14: Monex FX – Margin FOREX Trades
Monex FX – Margin FOREX Trades Number Numberofofaccounts accountsbroke brokethrough throughthe thebarrier barrierofof10,000 10,000(on (onApril April2,2,2004). 2004).This Thisnumber numberisissurpassing surpassingasasaasecurities securitiescompany. company. (Strength of Monex) Eight pairs of currenci
Slide 15: Underwriting (IPO) Business
Underwriting (IPO) Business Number of company FYE 03/2004 Underwriting Amount (in million yen) FYE 03/2004 1Q～4Q 4Q 3Q 2Q 1Q 1Q 2Q 3Q 4Q Company Name IPO Date Share 10 12 9 4 Monex 783 1,312 4,586 OPT, Inc. 02/13 7.0% 342 Shinsei Bank, Limited 02/19 3.0% HIGASHINIHON GAS CORPORATION 02/25 1.0% 20 13
Slide 16: Differentiated Services intended to gain Customers' Royalty
Differentiated Services intended to gain Customers’ Royalty Nonprice Nonpricecompetition competitionby byproviding providingvalue-added value-addedcontents contents ■ E-mail ■ Off-line service ●“Monex Mail”(pro bono service) Seminar (01/2004 - 03/2004) -sent each business day after the stock market
Slide 17: 1. Financial Results and Business Overview 2. Business Model and Future Development
1. Financial Results and Business Overview 2. Business Model and Future Development 16
Slide 18: Comprehensive Position of Monex
Position of Monex (Our (OurTarget) Target) Shift Shift theletter the letter“Y” “Y”ofof“MONEY” “MONEY”totothe thenext nextletter letter“X” “X” - -MONEX MONEX will propose the “MONEY ” of the next eraand will propose the “MONEY ” of the next era andbecome becomethe thefinancial financialinterface inte
Slide 19: Business Integration with Nikko Beans
MBH Business BusinessIntegration Integrationwith withNikko NikkoBeans Beans Business Integration Scheme Intent of Business Integration (Pursuit the value-added services and products) ※ Sony Corp.： 20.09% Nikko Cordial Corporation： 20.07% Mechanical Intellectual Platform of Major + + Holding Company
Slide 20: Direction and Strategy
Direction and Strategy Hop, Hop,“Double” “Double”Step Stepand andJump Jump Quality 5 elements to cross the border for the great competitive era Establishment of Stability Alliance with Nikko and Reliability Cordial Corporation Expansion of distinguished brings us a basis for Products and Services ne
Slide 21: Comparison with Other Companies: Number of accounts and Customers' assets
Comparison with Other Companies : Number of accounts, and Customers’ assets in custody Number of accounts (as of the end of 03/2004） Customers’ assets in custody (as of the end of 12/2003) ※Please note that the number of MBH is the simple sum of the numbers of two companies. (thousands） (10 billion
Slide 22: Comparison with Other Companies: Net Operating Revenue and Ordinary Income
Comparison with Other Companies : Net Operating Revenue and Ordinary Income 04/2003 – 12/2003 (9 months) (in 100 million yen) 160 Net Operating Revenue Operating Income 120 80 40 0 MBH Matsui E*trade DLJ Monex Nikko Beans Kabu.com Sources : IR pages of Companies’ web 21
Slide 23: Schedule for Integration
Schedule for Integration 04/2004 08/2004 ★05/2004 06/2004 ◆ 07/2004 × ◎ 09/2004 01/2005 ■ ■ ● ● ★ April 21, 2004 Board of Directors Meeting of Monex, Inc. to resolve the Share Transfer ★ April 22, 2004 (Scheduled) Board of Directors Meeting of Nikko Beans, Inc. to resolve the Share Transfer ◆ June 2
Slide 24: MONEX
MONEX http://www.monex.co.jp/