Monex Group, Inc. · TSE:8698
Monex — SPAC Merger (August 2022)
31 slides from Monex's SPAC merger presentation, Aug 3, 2022
Slide 1: Financial Results for 1Q of Fiscal Year Ending March 31, 2023
Financial Results for 1Q of Fiscal Year Ending March 31, 2023 August 3, 2022 Monex Group TSE Prime : 8698
Slide 2: Our Business Principles
1 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
Slide 3: Table of Contents
Our Business Principles p.1 Table of Contents p.2 Ⅰ . Highlights p.3 - p.11 Ⅱ . Consolidated Performance p.12 - p.29 Ⅲ . Business Update p.30 - p.45 Appendix: Group Overview p.46 - p.59 Disclaimer p.60
Slide 4: I. Highlights
MONEX GROUP I. Highlights
Slide 5: Highlights of 1Q of FYE Mar. 31, 2023 – Consolidated Operating Revenue
Highlights of 1 Q of FYE Mar . 31, 2023 – Consolidated Operating Revenue Solid revenues QoQ despite an unfavorable equity and crypto asset market environment. 7,823 7,345 6,325 6,918 3,160 3,162 304 274 17,612 17,698 4Q of FYE Mar. 31, 2022 1Q of FYE Mar. 31, 2023 Others Crypto Asset Segment US Segm
Slide 6: Highlights of 1Q of FYE Mar. 31, 2023 – Consolidated Pre-tax Income
Highlights o f 1Q of FYE Mar. 31, 2023 – Consolidated Pre - tax Income Accumulated customer deposits contributed to an increase in net financial income due to US interest rate hikes, offsetting a decrease in brokerage commissions. Advertising expenses were controlled and real profit levels were main
Slide 7: Financial interest impact and advertising expenses
Financial interest impact and advertising expenses （ \ Million ） Advertising expense 4Q of FYE Mar. 31, 2022 → 1Q of FYE Mar. 31, 2023 US \ 2,099M → \ 2,059M ($18M → $16M) Crypto asset \ 1,053M → \ 591M Advertising expenses Each subsidiary has been actively conducting advertising and promotion to ex
Slide 8: Growth Strategy of Coincheck (Crypto Asset Segment)
Growth Strategy of Coincheck (Crypto Asset Segment) Coincheck Group (CCG)* 1 is proceeding with listing procedures. 7 - After the proposed business combination with Nasdaq - listed SPAC, Thunder Bridge Capital Partners IV, Inc. (THCP), Coincheck Group is planned to go public on Nasdaq. (Termination
Slide 9: II. Consolidated Performance
Ⅱ . Consolidated Performance 8
Slide 10: Highlights 1Q of FYE Mar. 2023 (3 months)
Highlights 1Q of FYE Mar. 2023 (3 months) Japan US Crypto Asset Asia Pacific Investment * Segment profit/loss = Pre - tax profit/loss. The same hereinafter . NFT - related revenues grew despite a slower crypto market. Reduction in advertising expenses resulted in segment profit of \ 0.4B . (Burdened
Slide 11: YoY Comparison (3 months) Consolidated Performance
YoY Comparison (3 months) Consolidated Performance (JPY million) FYE Mar. 202 2 1Q (Apr – Jun . 20 21 ) FYE Mar. 202 3 1Q (Apr – Jun . 20 22 ) Variance Rate of change Reference Total operating revenue after deducting financial expenses and cost of sales 26,069 17,698 - 8,370 - 32% P16: Analysis of J
Slide 12: YoY Comparison (3 months) Segment Performance
YoY Comparison (3 months) Segment Performance (JPY million) Japan US Crypto Asset Asia Pacific Investment 2022/3 1Q 2023/3 1Q 2022/3 1Q 2023/3 1Q 2022/3 1Q 2023/3 1Q 2022/3 1Q 2023/3 1Q 2022/3 1Q 2023/3 1Q Total operating revenue after deducting financial expenses and cost of sales 7,373 7,345 5,728
Slide 13: YoY Comparison (3 months) Analysis: Operating Revenue
YoY Comparison (3 months) Analysis: Operating Revenue Crypto: Net trading income decreased due to lower trading volumes amidst a slower crypto market. Others increased due to the expansion of NFT businesses. *1 (JPY million) ■ Others (+251) ■ Net trading income ( - 9,828) *1 Quarterly total operatin
Slide 14: YoY Comparison (3 months) Analysis: SG&A
YoY Comparison (3 months) Analysis: SG&A Crypto: Advertising expenses have decreased by 60% in response to current market conditions. Total SG&A decreased YoY. SG&A Total - 28.5 ％ ( - 1,070 ) ■ Others ( - 6) *1 ■ Advertising expenses ( - 850) ■ Communication, freight and information expenses (+65) ■
Slide 15: QoQ Comparison (3 months) Consolidated Performance
QoQ Comparison (3 months) Consolidated Performance (JPY million) FYE Mar. 202 2 4Q (Jan. 202 2 – Mar . 20 22 ) FYE Mar. 202 3 1Q (Apr. 202 2 – Jun. 20 22 ) Variance Rate of change Reference Total operating revenue after deducting financial expenses and cost of sales 17,612 17,698 +86 +0 % P 24 : Ana
Slide 16: QoQ Comparison (3 months) Segment Performance
QoQ Comparison (3 months) Segment Performance (JPY million) Japan US Crypto Asset Asia Pacific Investment 2022/3 4Q 2023/3 1Q 2022/3 4Q 2023/3 1Q 2022/3 4Q 2023/3 1Q 2022/3 4Q 2023/3 1Q 2022/3 4Q 2023/3 1Q Total operating revenue after deducting financial expenses and cost of sales 7,823 7,345 6,325
Slide 17: QoQ Comparison (3 months) Analysis: Operating Revenue
QoQ Comparison (3 months) Analysis: Operating Revenue Crypto: Total revenue increased slightly due to growth in NFT businesses while net trading income decreased due to lower trading volumes amidst a slower crypto market. Quarterly total operating revenue after deducting financial expenses and cost
Slide 18: QoQ Comparison (3 months) Analysis: SG&A
QoQ Comparison (3 months) Analysis: SG&A Crypto: Total SG&A expenses decreased significantly as advertising expenses declined by approx. 50% despite one - time expenses related to the De - SPAC transaction. SG&A Total - 37.8 ％ ( - 1,631 ) *1 Others includes professional fees related De - SPAC \ 560M
Slide 19: III. Business Update
MONEX GROUP I. Business Update
Slide 20: Business Update Crypto Asset Segment 1/5
Business Update Crypto Asset Segment 1/5 Coincheck further strengthens its leading position in the crypto asset industry in Japan. No.1 domestic market share for three consecutive years (by app DLs) * 5.2M DLs + 25% YoY (vs Jun. 30, 2021) Verified accounts 1.7M + 26 % YoY (vs Jun. 30, 2021) 2. Custo
Slide 21: Business Update Crypto Asset Segment 2/5
Business Update Crypto Asset Segment 2/5 Coincheck continues to acquire new accounts while carefully monitoring market conditions to adapt its variable cost structure. Marketing expense and Account acquisition Coincheck suspended TV commercials in Mar. 2022 and has maintained a 27% domestic market s
Slide 22: Business Update Crypto Asset Segment 3/5
Business Update Crypto Asset Segment 3/5 NFT businesses have grown steadily. Features and Strengths - Leveraging the customer base of Coincheck , a crypto asset trading platform. - Offering the globally popular NFTs. - 16 crypto currencies acceptable in payment. Revenue model 1. From primary market
Slide 23: Business Update Crypto Asset Segment 4/5
Business Update Crypto Asset Segment 4/5 Coincheck intends to create and expand its digital economic sphere with an eye on Web3. Metaverse /Web3 Oasis TOKYO ・ Oasis KYOTO ・ Oasis MARS • Launched a project to create "Oasis TOKYO,“ "Oasis KYOTO" and “Oasis MARS”on land in the metaverse owned by Coinch
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 or partnerships. NFTs Financial services adjacencies Marketplace / IEO Continue to grow customer base and revenue to retain #1 market shar
Slide 25: Appendix: Group Overview
MONEX GROUP Appendix: Group Overview
Slide 26: Appendix: Highlights 1Q of FYE Mar. 2023 (3 months) 2/3
Appendix: Highlights 1Q 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) (JPY million) 5,728 5,464 6,062 6,325 6,918 - 185 - 1,502 - 2,121 - 1,750 - 1,972 -4,000 0 4,000 8,000 2022/3 1Q 20
Slide 27: Group Overview (As of June 30, 2022)
Group Overview (As of June 30, 2022) Listed Holding Company [Japan ] Monex, Inc. Comprehensive investment service provider Online Securities Company Corporate Venture Capital Monex Ventures, Inc. Venture capital business Asset Management Coincheck, Inc. Crypto asset exchange " Coinc heck “ Crypto as
Slide 28: Group Overview – Monex, Inc. and TradeStation Group
■ Monex, Inc. (Tokyo, Japan) One of the major online brokerage firms in Japan - President : Yuko Seimei - Founded in 1999 - Aims to provide retail investors the level of creative products and services offered to institutional investors - Products and services: Equities (Japan, U.S., China), futures
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 % 34 % 1 % 1 % Selling, general and administ
Slide 30: Disclaimer
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 , Inc. (“ Coincheck ”), Coincheck Group B.V. (“CCG”), Thunder Bridge Capi
Slide 31: . MONEX GROUP’)
. MONEX GROUP’)