Sbi Holdings Incorporated · TSE:8473
Sbi — Sbi Holdings Inc Ord — Q3 2023 Earnings Presentation
88 slides from Sbi's earnings presentation, Feb 8, 2024
Slide 1: SBI Holdings, Inc. Financial Results
Strategic Business Innovator SBI Holdings, Inc. Financial Results for the Nine-month Period Ended December 31, 2023 (Fiscal Year Ending March 31, 2024) February 7, 2024 [Unauthorized reproduction is prohibited] 0
Slide 2: Disclaimer
The items in this document are provided as information related to the financial results and the business strategy of the SBI Group companies and not as an invitation to invest in the stock or securities issued by each company. The business collaboration with SBI Shinsei Bank described in this docume
Slide 3: I. 9M FY2023 Consolidated Performance (IFRS)
I. 9M FY2023 Consolidated Performance (IFRS) [Unauthorized reproduction is prohibited] 2
Slide 4: Consolidated Performance Overview
[Consolidated Performance Overview] • Revenues increased 32.2% year-on-year to JPY 864.7bn, which is a record high for 9M FY2023, largely due to an increase in revenue from the Financial Services Business (increased 22.3% year-on-year to JPY 741.1bn) • Consolidated profit before income tax expense i
Slide 5: 9M FY2023 Consolidated Performance (IFRS)
9M FY2023 Consolidated Performance (IFRS) [Year-on-year comparison] (Unit: JPY million) YoY 9M FY2022 *1 9M FY2023 Change (Apr. 2022-Dec. 2022) (Apr. 2023-Dec. 2023) (%) Revenue 653,875 Record high 864,719 +32.2 Profit before income tax 49,225 100,088 +103.3 expense Profit for the period 36,537 70,1
Slide 6: 9M FY2023 Performance by Segment (IFRS)
9M FY2023 Performance by Segment (IFRS) [Year-on-year comparison] (Unit: JPY million) Revenue Profit Before Income Tax Expense 9M FY2022 9M FY2023 YoY change 9M FY2022 9M FY2023 YoY change (Apr. 2022– (Apr. 2023– (%) (Apr. 2022– (Apr. 2023– (%) Dec. 2022) Dec. 2023) Dec. 2022) Dec. 2023) Financial S
Slide 7: Performance of the SBI Group's Major Listed Companies
Performance of the SBI Group’s Major Listed Companies - Demonstrate the strength of group management that thoroughly pursues various synergies within Business Ecosystem - Net income attributable (Unit: JPY million) Revenue *1 to owners of the parent 9M FY2022 9M FY2023 YoY change 9M FY2022 9M FY2023
Slide 8: Year-end dividend for FY2023 (forecast) is JPY 130 per share
Year-end dividend for FY2023 (forecast) is JPY 130 per share Based on the profit level of the Financial Services Business in the consolidated financial results for 9M FY2023 and other factors, SBI Holdings plans to pay an ordinary dividend of JPY120 per share In addition to the above, SBI Holdin
Slide 9: Shareholder Benefits for FY2023
Following the Previous Fiscal Year, will Conduct Shareholder Benefits for FY2023 [Details of shareholder benefits] *Shareholders listed or recorded in the shareholder register as of Mar. 31, 2024, are eligible Qualified Shareholders who have held For shareholders other than on the shareholders share
Slide 10: Business Overview of Each Core Business
[Business Overview of Each Core Business] [Unauthorized reproduction is prohibited] 9
Slide 11: 1. Financial Services Business
1. Financial Services Business [Financial Services Business Consolidated Results (IFRS)] (Unit: JPY million) 9M FY2022 9M FY2023 YoY (%) (Apr. 2022 – Dec. 2022) (Apr. 2023 – Dec. 2023) Revenue 605,916 741,051 +22.3 Profit before income tax expense 114,759 111,837 -2.5 Profit before income tax expens
Slide 12: Financial Services: (1) Securities business
1. Financial Services Business: (1) Securities business [Major constituent companies] SBI SECURITIES, SBI Liquidity Market, SBI FXTRADE, SBI MONEYPLAZA, PTS operating companies, overseas securities subsidiaries [Business highlights] • SBI SECURITIES recorded a record high JPY 151.7bn in operating re
Slide 13: SBI SECURITIES 9M FY2023 Consolidated Results (J-GAAP)
SBI SECURITIES 9M FY2023 Consolidated Results (J-GAAP) [Year-on-year comparison] (Unit: JPY million) 9M FY2022 9M FY2023 YoY (%) (Apr. 2022 – Dec. 2022) (Apr. 2023 – Dec. 2023) Operating revenue 126,584 Record high 151,734 +19.9 Net operating Record revenue 117,021 high 136,808 +16.9 Record Operatin
Slide 14: Like-for-like Comparison of Major Brokerage Companies for 9M FY2023
Like-for-like Comparison of Financial Results of Major Brokerage Companies for 9M FY2023 (Unit: JPY million) Profit attributable to Operating Profit Ordinary profit owners of the Company 1 Nomura Securities (Non-consolidated) 100,931 100,855 76,290 2 Daiwa Securities (Non-consolidated) 55,204 57,044
Slide 15: Financial Services: (2) Banking business
1. Financial Services Business: (2) Banking business [Major constituent companies] SBI Shinsei Bank Group, SBI Sumishin Net Bank, SBI ARUHI (Company name changed in January 2024), overseas banks including SBI SAVINGS BANK [Business highlights] • SBI Shinsei Bank recorded net profit attributable to o
Slide 16: SBI Shinsei Bank Group
① SBI Shinsei Bank Group [Unauthorized reproduction is prohibited] 15
Slide 17: SBI Shinsei Bank 9M FY2023 Consolidated Performance (J-GAAP)
1.(2) Banking-related business: ①SBI Shinsei Bank Group SBI Shinsei Bank 9M FY2023 Consolidated Performance (J-GAAP) -Ordinary Business Profit is the highest in the past 10 years - Note: Units are rounded down to the nearest decimal (Unit: JPY billion) YoY 9M FY2022 9M FY2023 change(%) Gross operati
Slide 18: SBI Shinsei Bank's Net Business Income Improved After Joining SBI Group
1.(2) Banking-related business: ①SBI Shinsei Bank Group SBI Shinsei Bank’s Net Business Income Improved Significantly after Joining the SBI Group <SBI Shinsei Bank’s Ordinary Business Income Change> (JPY billion) Dec. 2021 JPY 62.5bn Joined SBI Group (9M cumulative) 37.1 (*) (*2) JPY 52.3bn JPY 52.6
Slide 19: Number of Retail Accounts and Deposits at SBI Shinsei Bank
1.(2) Banking-related business: ①SBI Shinsei Bank Group Number of Retail Accounts and Deposits at the SBI Shinsei Bank (JPY trillion) (10 thousand accounts) Dec. 2021 341 Joined SBI Group 13 316 309 308 12 305 10.7 11 300 9.9 10 Total amount of deposits (Left) 9 Number of accounts (Right) 8 6.5 7 6.
Slide 20: Track Record of Creating Synergies
1.(2) Banking-related business: ①SBI Shinsei Bank Group Track Record of Creating Synergies between SBI Shinsei Group and the SBI Group companies (Cumulative total) 105 Amount (JPY billion) Number of accounts 83 100 224.8 2,248 2,500 80 2,000 51 1,955 195.5 60 36 40 1,500 109.2 1,092 20 80.7 807 0 1,
Slide 21: SBI Sumishin Net Bank
② SBI Sumishin Net Bank SBI Sumishin Net Bank was listed on the TSE Standard Market on March 29, 2023, and the Company’s shareholding ratio is 34.19% (equity method affilitate) [Unauthorized reproduction is prohibited] 20
Slide 22: Performance of SBI Sumishin Net Bank
1.(2) Banking-related business: ②SBI Sumishin Net Bank Performance of SBI Sumishin Net Bank SBI Sumishin Net Bank recorded a 15.1% YoY increase in J-GAAP recurring profit to JPY 25,097m on the back of steady loan growth in the housing loan business SBI Holdings’ equity method in earnings of SBI
Slide 23: Number of Accounts and Balance of Deposits Since Commencement
1.(2) Banking-related business: ②SBI Sumishin Net Bank Number of Accounts and Balance of Deposits Since Commencement of Operation of SBI Sumishin Net Bank (JPY billion) Number of accounts: approx. 6.88m / Deposits: JPY 9,205.4bn (10 thousand accounts) (As of the end of Dec. 2023) 614 Deposits (Left/
Slide 24: SBI Group's Mortgage Loan Executions vs Three Megabanks
SBI Group’s Mortgage Loan Executions Significantly Higher than the Three Megabanks <FY2022 Share of New Mortgage Loan Executions (JPY trillion)> 0.4 0.7 1.0 2.1 (10％) 20.8 Whole SBI Group SMFG Mizuho FG MUFG (Note 1) SBI Group includes the sum of SBI Sumishin Net Bank, SBI Shinsei Bank and SBI ARUHI
Slide 25: SBI SAVINGS BANK (South Korea)
③ SBI SAVINGS BANK (South Korea) [Unauthorized reproduction is prohibited] 24
Slide 26: Performance of SBI SAVINGS BANK
1.(2) Banking-related business: ③ SBI SAVINGS BANK (South Korea) Performance of SBI SAVINGS BANK Profit Before Income Profit Before Income Tax Expense (KGAAP) Tax Expense (IFRS) (Unit: KRW (Unit: JPY 356.9 YoY billion) 21,187 YoY million) -68.3% -52.3% 113.2 10,104 4Q 34.3 3Q 5,897 3Q 66.9* (1Q) (1Q
Slide 27: Changes in Indicators Since Becoming a Subsidiary
1.(2) Banking-related business: ③ SBI SAVINGS BANK (South Korea) Changes in Indicators Since Becoming a Subsidiary (K-GAAP) - The upward trend in overall bond delinquency rates has subsided - (Unit: KRW * Converted at KRW 1 = JPY 0.11 Delinquency rate (％) billion) for all loans Total Assets 18,000 1
Slide 28: Financial Services: (3) Insurance business
1. Financial Services Business: (3) Insurance business [Major constituent companies] SBI Insurance Group, SBI Insurance, SBI Life Insurance, Small-amount short-term insurance companies [Business highlights] • SBI Insurance Group’s consolidated ordinary income for 9M FY2023 (J-GAAP basis), increased
Slide 29: SBI Insurance Group's Consolidated Performance
1. (3) Insurance business SBI Insurance Group’s Consolidated Performance Consolidated results for 9M FY2023 (J-GAAP) (Unit: JPY million) 9M FY2022 9M FY2023 YoY % (Apr. – Dec. 2022) (Apr. – Dec. 2023) change Record Ordinary income 70,342 high 78,466 +11.6 Record Ordinary profit 5,176 high 6,427 +24.
Slide 30: SBI Insurance Group's In-Force Contracts CAGR
1.(3) Insurance business SBI Insurance Group’s Total Number of In-Force Contracts CAGR 13.9% Sept. 2023 Living SAST Insurance Co., Ltd, (the end of Mar. 2016 - a provider of home equipment the end of Dec. 2023) insurance, joined the Group (million contracts) SBI JOGUCHI SAFETY 3.00 SSI joined the Gr
Slide 31: 2. Asset Management Business
2. Asset Management Business [Major constituent companies] SBI Global Asset Management (SBIGAM), SBI Asset Management (SBIGAM subsidiary), Wealth Advisor (SBIGAM subsidiary), Rheos Capital Works, SBI Okasan Asset Management [Asset Management Business Consolidated Results (IFRS)] (JPY million) 9M FY2
Slide 32: Consolidated Results of SBI Global Asset Management
2. Asset Management Business: Consolidated Results of SBI Global Asset Management Consolidated Financial Results for the Third Quarter of the Fiscal Year ending March 31, 2024 (J-GAAP) (Unit: JPY million) 9M FY2022 9M FY2023 YoY(%) (Apr. 2022-Dec. 2022) (Apr. 2023-Dec. 2023) Record Net sales 6,526 h
Slide 33: SBI Asset Management's Newly Established Funds
2. Asset Management Business: SBI Asset Management’s Newly Established Funds Rapidly Increased Net Asset Value Despite Being Sold Exclusively Through SBI SECURITIES - Extremely low management costs have earned broad support from investors - SBI Japan High Dividend Equity Fund (Quarterly settlement t
Slide 34: SBI Global Asset Management AUM Surpasses JPY 5.1tn
2. Asset Management Business: SBI Global Asset Management Group’s Asset Under Management Surpasses JPY 5.1tn - Steady inflows into publicly offered index funds provided by SBI Asset Management contributed to the increase in assets under management - Publicly offered active funds Publicly offered pas
Slide 35: SBI Group Expands AUM Through Organic Growth and M&As
2. Asset Management Business: SBI Group Continuously Expands Its Assets Under Management Through Organic Growth and M&As （JPY billion） - AUM as of end of December 2023 is approx. JPY 8.7tn - 9,000 SBI Okasan Asset Management JPY 8,666.5bn Rheos Capital Works SBI Okasan Asset 8,000 SBI Global Asset M
Slide 36: Plans for Alternative Investment Strategies and Assets
2. Asset Management Business: Plans to Develop around Two Alternative Investment Strategies: “Alternative Strategies” and “Alternative Assets” On December 13, 2023, the Kishida administration announced the “Policy Plan for Promoting Japan as a Leading Asset Management Center” and announced its goal
Slide 37: Endeavor to Achieve AUM of JPY 20tn by FY2027
2. Asset Management Business: Endeavor to Achieve the Total Group Assets Under Management of JPY 20tn by FY2027 [Now] [New goal] As of end of December 2023 Endeavor to achieve Approx. JPY 8.7tn JPY 20tn on FY2027 <Index & multi-asset> <U.S. govt. bonds> <Active> [SBI Okasan Asset Management] Approx.
Slide 38: 3. Investment Business
3. Investment Business [Major constituent companies/businesses] Private Equity Business, SBI Leasing Services [Investment Business Consolidated Results (IFRS)] (Unit: JPY million) 9M FY2022 9M FY2023 YoY % change (Apr.-Dec. 2022) (Apr.-Dec. 2023) Revenue -2,611 57,240 - Profit before income tax -33,
Slide 39: Profit/Loss from Changes in Fair Value and Sales of Investments
3. Investment Business: Profit/Loss from Changes in Fair Value and Profit/Loss on Sales of Investment Business (Unit: JPY million) 9M FY2022 9M FY2023 YoY change (Apr.–Dec. 2022) (Apr.–Dec. 2023） (%) Profit/loss from the change in fair value and profit/loss on -32,496 2,539 ― sales of investment sec
Slide 40: IPOs and M&As of SBI Group Investee Companies
3. Investment Business IPOs and M&As of The SBI Group Investee Companies Full-year FY2023 Full-year FY2022 prospects IPO・M&A deals 21 21 During the fiscal year, 16 Companies realized either IPO or M&A EXIT Date Company Market EXIT Date Company Market kusurinomadoguchi, Apr. 12, 2023 ispace, inc. TSE
Slide 41: Assets Under Management of the SBI Group
3. Investment business Assets Under Management of the SBI Group (As of the end of Dec. 2023) Private equity, etc. JPY 767.5bn(*1)(Excluding JPY 328.2bn of both cash and commitment amount(*2) to be paid in) Breakdown of operating investment Balance Breakdown of operating Balance securities by Industr
Slide 42: New SBI Digital Space Fund of Up to JPY 100bn
3. Investment business New Fund of Up to JPY 100bn to Invest in Cutting-Edge Services/Technologies with a Focus on Digital Space, “SBI Digital Space Fund” is Currently Under Management Investment target areas： Not only “digital space” segments such as Web3 and the metaverse, but also a wide range
Slide 43: Partnering with Global Businesses and Organizations
3. Investment Business: Partnering with Businesses and Organizations Boasting a Global Presence, Gaining a Foothold in Investing Activity to Bolster Expansion in the Global South [Saudi Aramco] Employing a business alliance with state-owned Saudi Aramco of Saudi Arabia, the world’s largest integrate
Slide 44: SBI Leasing Services' Performance
3. Investment Business SBI Leasing Services’ Performance 9M FY2023 Consolidated Performance (J-GAAP) (Unit: JPY million) 9M FY2022 9M FY2023 YoY change (Apr. 2022-Dec. 2022) (Apr. 2023-Dec. 2023) (%) Revenue 19,726 34,951 +77.2 Operating income 1,872 3,921 +109.4 Ordinary income 1,482 3,667 +147.4 P
Slide 45: 4. Crypto-asset Business
4. Crypto-asset Business [Major constituent companies / business] SBI VC Trade, BITPoint Japan, B2C2, crypto asset mining business, HashHub [Crypto-asset Business Consolidated Performance (IFRS)] (Unit: JPY million) 9M FY2022 9M FY2023 YoY(%) (Apr. 2022-Dec. 2022) (Apr. 2023-Dec. 2023) Revenue 24,34
Slide 46: Number of Customers in Crypto-asset Business
4. Crypto-asset Business Number of Customers on the SBI Group’s Crypto-asset Business (End of Dec.2021 – Dec. 2023) *1 Combined number of SBI VC Trade 5.00 (including former TaoTao) and 4.73 4.52 4.50 BITPOINT accounts 4.33 *2 The number of customers as of 4.13 3.98 4.00 the end of December 2021 is
Slide 47: Staking Services Performed Well
4. Crypto-asset Business Staking Services Provided by the SBI Group (SBI VC Trade, BITPOINT) Performed Well Staking is the process of earning rewards by participating in generation and approval of blocks and supporting the operation of the blockchain network, which adopts a proof-of- stake mechanism
Slide 48: 5. Next Gen Business
5. Next Gen Business [Major constituent businesses] Biotechnology, Healthcare & Medical Informatics businesses, Semiconductor Business and other businesses including Web3 [Next Gen Business Segment Consolidated Performance (IFRS)] (Unit: JPY million) 9M FY2022 9M FY2023 YoY % change (Apr. 2022 – Dec
Slide 49: Profit Before Income Tax of Biotechnology, Healthcare & Medical Informatics Companies
Profit Before Income Tax Expense of the Biotechnology, Healthcare & Medical Informatics Business Companies (IFRS) (JPY million) 9M FY2022 9M FY2023 YoY (Apr. 2022 – Dec. 2022) (Apr. 2023 – Dec. 2023) Change (%) SBI Biotech -34 -155 – 5-ALA-related business* -644 -383 – SBI Pharmaceuticals -1,012 -60
Slide 50: Web3-related Businesses Advancing Initiatives
In Web3-related Businesses, Individual Companies are Advancing Initiatives to Expand their Businesses [SBINFT] As the blockchain game market holds potential for rapid growth in scale, in Nov. 2023, SBINFT rebranded its NFT exchange,“SBINFT Market”, towards gaming. To support entry into businesses la
Slide 51: Progress in Semiconductor Business Toward Foundry Operations
5. Next Gen Business： Steady Progress in Semiconductor Business Toward Early Start of Foundry Operations JSMC changed its name to JSMC Holdings on December 25, 2023 [Foundry construction plan] Promoting Discussions with construction companies to enable the start of mass production of semiconductor w
Slide 52: II. The Effect of ZERO Revolution
II.The Effect of “ZERO Revolution” [Unauthorized reproduction is prohibited] 51
Slide 53: Impact of ZERO Revolution within the SBI Group
1. Impact of ZERO Revolution within the SBI Group (1) SBI SECURITIES directly benefits from ZERO Revolution (2) Ripple effects of the ZERO Revolution on securities-related businesses (3) Signs of the ZERO Revolution’s effect on expanding the customer base are becoming apparent in businesses other th
Slide 54: SBI SECURITIES directly benefits from ZERO Revolution
(1) SBI SECURITIES directly benefits from ZERO Revolution ① ZERO Revolution dramatically increased customer base ② Contribution to business performance by diversifying and strengthening alternative revenue sources [Unauthorized reproduction is prohibited] 53
Slide 55: Customer Base Expanding at Accelerating Pace
① ZERO Revolution dramatically increased customer base SBI Group’s Customer Base is Expanding at an Accelerating Pace, Driven by ZERO Revolution and the Expansion of NISA <Number of Accounts of SBI SECURITIES Group and Major Face-to-face Securities Companies> CAGR：% (thousand accounts) (End of Mar.2
Slide 56: New Account and Margin Account Openings Increased
① ZERO Revolution dramatically increased customer base New Account and Margin Account Openings Increased Significantly after the Announcement of ZERO Revolution <Quarterly Number of New Accounts Opened>*1 <Quarterly Number of Margin Accounts Opened>*2 +76.9% from the (Thousand accounts) +4.3% from t
Slide 57: Marked Increase in Account Transfers from Other Companies
① ZERO Revolution dramatically increased customer base ZERO Revolution Has Led to Marked Increase in Transfers of Accounts from Other Companies <Number of Domestic Stocks Accounts In- and Out- Transfers at SBI SECURITIES> in-transfers out-transfers Aug. 31, 2023: * The figure for June 2019, when the
Slide 58: SBI Group Has Majority Share of Stock Trading Volume
① ZERO Revolution dramatically increased customer base The SBI Group Has Taken Majority of the Share of Stock Trading Volume <Trend in Share (quarter) of <(of which) Trend in Share (quarter) of Individual Stock Trading Value*> Individual Margin Trading Value*> Record Record high high 51.6 53.8 45.1
Slide 59: Seeks Top Position in Number of NISA Accounts
① ZERO Revolution dramatically increased customer base SBI SECURITIES Seeks to the Top Position in Number of NISA Accounts with ZERO Revolution Part Two <Trend of the Number of NISA Accounts> (Mar. 2016– Dec. 2023) (10 thousand accounts) Number of NISA accounts at Rakuten Securities as the end of <Z
Slide 60: Newly Opened NISA Accounts and Transfers Rising
① ZERO Revolution dramatically increased customer base Number of Newly Opened NISA Accounts and NISA Account Transfers from Other Securities Companies are Rising <Quarterly Trend of the Number of <Quarterly Trend of the Number of NISA Account Newly Opened NISA Accounts> Transfers from Other Securiti
Slide 61: iDeCo Subscribers Have Grown Steadily
① ZERO Revolution dramatically increased customer base Subscribers of iDeCo which SBI Benefit Systems is Entrusted with Has Grown Steadily SBI Group focused on the Individual Defined Contribution (iDeCo) pension business through SBI Benefit Systems (est. 2001), well before expectations for the marke
Slide 62: Industry Leader in Cumulative iDeCo Customers
① ZERO Revolution dramatically increased customer base SBI SECURITIES is the Industry Leader in the Cumulative Number of Individual Defined Contribution Plan (iDeCo) Customers - Gap between the number of accumulated customers of the second largest company in the industry (Company B) continues to wid
Slide 63: SBI SECURITIES' Operating Revenue Breakdown for 9M FY2023
② Contribution to business performance by diversifying and strengthening alternative revenue sources SBI SECURITIES’ Consolidated Operating Revenue (Net Sales) Breakdown for 9M FY2023 YoY +19.9% (JPY million) 151,734 Other operating revenues 160,000 Other 23 126,584 operating revenues Financial reve
Slide 64: Quarterly Operating Revenue Before and After ZERO Revolution
② Contribution to business performance by diversifying and strengthening alternative revenue sources Quarterly Consolidated Operating Revenue (Net Sales) Comparison (before and after ZERO Revolution) (JPY million) YoY +8.5% 51,050 51,040 49,643 48,469 Other operating 50,000 45,745 revenues 13,433 15
Slide 65: Financial Revenue Remained High
② Contribution to business performance by diversifying and strengthening alternative revenue sources - Financial revenue Financial Revenue Remained High Despite a Slight Decline in Open Interest Credit Balance due to Seasonal Factors <Trend of Open Interest Credit Balance <Trend of Financial Revenue
Slide 66: Trend of Trading Revenue at SBI SECURITIES
② Contribution to business performance by diversifying and strengthening alternative revenue sources - Trading revenues Trend of Trading Revenue at SBI SECURITIES (consolidated) YoY (JPY million) Others (revenue through foreign currency bond, etc) +17.5% Crypto-asset trading revenue 45,000 FX revenu
Slide 67: Bond Sales Volume Robust
② Contribution to business performance by diversifying and strengthening alternative revenue sources - Trading revenues The Sales Volume of Bonds (quarterly) has been Robust in both Yen-denominated and Foreign Currency Bonds Record (JPY million) <Trend of Quarterly Sales of Bonds> high Yen-dominated
Slide 68: Expand Products Generating Brokerage Commission Income ①
② Contribution to business performance by diversifying and strengthening alternative revenue sources - Commissions Expand Products and Services Other than Domestic Stocks that Generate Brokerage Commission Income ① <Foreign Stocks (including foreign ETFs)> • Handles stocks from China, Korea, Russia,
Slide 69: Expand Products Generating Brokerage Commission Income ②
② Contribution to business performance by diversifying and strengthening alternative revenue sources - Commissions Expand Products and Services Other than Domestic Stocks that Generate Brokerage Commission Income ② [Futures・options trading] [Individual stock options trading] • Individual stock optio
Slide 70: Osaka Digital Exchange Opened START Security Token PTS
② Contribution to business performance by diversifying and strengthening alternative revenue sources - Commissions The Osaka Digital Exchange (ODX) Opened “START”, Private Trading System (PTS) for Security Tokens (ST), the First Ever in Japan On the opening day of trading (Dec. 25, 2023), ODX held a
Slide 71: Highest IPO Underwriting Share in the Industry
② Contribution to business performance by diversifying and strengthening alternative revenue sources - Underwriting / Offering commissions / Sales commissions SBI SECURITIES Has Been Maintaining the Highest IPO Underwriting Share in the Industry Since FY2012 - Steady growth in POs and corporate bond
Slide 72: Investment Trust Balance and Fees Have Grown
② Contribution to business performance by diversifying and strengthening alternative revenue sources - Other commissions Investment Trust Balance and Investment Trust Fees Has Grown on the Back of Announcement of ZERO Revolution and the Start of the New NISA Investment Trust Balance* (JPY million) I
Slide 73: Recurring Income Business Including SBI Wrap Performed Well
② Contribution to business performance by diversifying and strengthening alternative revenue sources - Other commissions Recurring Income-type Business such as Investment Trust Fund and Fully-automated AI Investment “SBI Wrap” also Performed Well <Trend of Accumulation Amount and <Number of Accounts
Slide 74: Ripple effects of ZERO Revolution on Securities-related Businesses
(2) Ripple effects of the ZERO Revolution on Securities-related businesses [Unauthorized reproduction is prohibited] 73
Slide 75: FX Business Industry-Leading Accounts and Margin Balance
SBI Group’s FX Business Boasts an Industry-Leading Number of Accounts and Margin Balance Under Custody Changes in the Number of Accounts among Customer Margin Deposits of FX (thousand 5 major FX Trading Related Companies Trading Related Companies (JPY accounts) (as the of end of Jan. 2021 – Dec. 202
Slide 76: SBI Liquidity Market Achieved Record Operating Revenue
SBI Liquidity Market, the Main Company in the FX-Related Business, Achieved Record Operating Revenue for the Third Quarter of the Fiscal Year Operating revenue of SBI Liquidity Market (Non-consolidated, J-GAAP) (Unit: JPY million) 9M FY2022 9M FY2023 YoY change (Apr. 2022-Dec. 2022) (Apr. 2023-Dec.
Slide 77: SBI MONEYPLAZA Deposited Assets and Customers Expanded
Deposited Assets and Customer Base of SBI MONEYPLAZA Has Expanded Rapidly, Mainly through Co-managed Shops with SBI Shinsei Bank and Regional Financial Institutions <Financial Result of SBI MONEYPLAZA(J-GAAP)> (Unit: JPY million) 9M FY2022 9M FY2023 YoY change (%) (Apr. – Dec. 2022) (Apr. – Dec. 202
Slide 78: Signs of ZERO Revolution Effect Beyond Securities Business
(3) Signs of the ZERO Revolution’s effect on expanding the customer base are becoming apparent in businesses other than the securities business [Unauthorized reproduction is prohibited] 77
Slide 79: Case Study: Impact of ZERO Revolution on SBI Shinsei Bank
Case Study: The Positive Impact of SBI SECURITIES’ Implementation of the “ZERO Revolution” on SBI Shinsei Bank Net new accounts in December tops single- month figure of 40,000 for the first time. Approx. 70% of newly opened accounts come <SBI Shinsei Bank Retail Accounts> from customers sent over
Slide 80: Has ZERO Revolution Impact Reflected on Securities Companies' Performance?
2. Has the impact of the ZERO Revolution begun to reflect on the performance of securities companies? [Unauthorized reproduction is prohibited] 79
Slide 81: Quarterly Profit Comparison of Major Securities Companies
Comparison of Quarterly Profit Attributable to the Owners of the Company of Major Securities Companies for 3Q FY2023 with the Previous Quarter (Oct. – Dec. 2023: After ZERO Revolution) (unit: JPY million) 3Q FY2023 QoQ (%) (Oct. – Dec. 2023) SBI SECURITIES (Consolidated) 10,589 -15.5 Nomura Securiti
Slide 82: SBI SECURITIES and Rakuten Securities Five-Quarter Performance
Comparison of SBI SECURITIES and Rakuten Securities’ Five-Quarter Performance - Has Rakuten Securities been seriously affected by adopted ZERO Revolution? - SBI SECURITIES (Unit: JPY million) FY2022 FY2023 3Q 4Q 1Q 2Q 3Q (Oct. –Dec. (Jan. – Mar. (Apr. – June (July – Sept. (Oct. – Dec. QoQ (%) 2022)
Slide 83: Impact on Regional Bank-Affiliated Securities Companies
The Impact of the “ZERO Revolution” on the 27 Regional Bank-Affiliated Securities Companies in Japan is Unavoidable Ten companies recorded a final loss for FY2022 <Net income for FY2022> North Pacific Securities -669 HACHIJUNI SECURITIES -544 Toho Securities -276 OKB Securities -49 77 Securities -26
Slide 84: Signs of Restructuring of Securities Industry
ZERO Revolution Reveals Signs of Restructuring of Securities Industry After SBI SECURITIES started ZERO Revolution in October 2023, the impact has become more pronounced, with many securities firms reporting double-digit or more QoQ declines Some part of the securities industry are already reorg
Slide 85: Reference material
[Reference material] [Unauthorized reproduction is prohibited] 84
Slide 86: Number of Companies and Employees of the SBI Group
Number of Companies and Employees of the SBI Group (Consolidated) Number of Group Companies End of Mar. 2023 End of Dec. 2023 Consolidated subsidiaries (companies) 518 580 Consolidated partnerships (partnerships) 62 62 Total consolidated subsidiaries (companies) 580 642 Equity method companies (comp
Slide 87: SBI Group Customer Base of Approximately 49 Million
SBI Group Has a Customer Base of Approximately 49 Million - Endeavor towards a Customer Base of 100 Million - Breakdown of the Customer Base (Thousand) (As of the end of Dec. 2023) *1,2 (Thousand) 48,974 SBI SECURITIES SBI NEOMOBILE 48,000 SECURITIES (No. of accounts) 11,686 SBI Neotrade Securities
Slide 88: https://www.sbigroup.co.jp
https://www.sbigroup.co.jp [Unauthorized reproduction is prohibited] 87