Slide 1: Financial Results of Fiscal Year Ended March 31, 2012
April 26, 2012 Financial Results of Fiscal Year Ended March 31, 2012 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 the consolidated financial statements of
Slide 2: Important Matters Concerning Product-related Risks
Important Matters Concerning Product-related Risks This material is explanatory material on the financial results of Monex Group, Inc. (“the Company”). The descriptions herein concerning the products, services, etc. which are handled by the Company’s group companies (“the Group Companies”), are made
Slide 3: Our Business Principles
Our Business Principles "MONEX" stands for the future of finance, one step advanced from "MONEY" The Monex Group is aspiring to empower traders and investors worldwide with best of breed technology, education, service and financial professionalism to provide access to top financial markets globally.
Slide 4: Table of Contents
Table of Contents Important Matters Concerning Product-related Risks ･･･ p.1 III. Global Vision and Strategies Our Business Principles ･･･ p.2 1. Background for the Global Vision ･･･ p.18 I. Key Strategy Overview 2. Concept of Shared Platform under the Global Vision ･･･ p.19 Strategies for Future Gr
Slide 5: Key Strategy Overview
1. Key Strategy Overview 2. Financial Results 3. Global Vision and Strategies 4. Data 4
Slide 6: Strategies for Future Growth
Strategies for Future Growth ◆ Developing a global platform in-house in order to establish a competitive business base and control cost Explore BtoB Business ◆ Focus on promoting 4 strategies; Japan, U.S., China and Global Becoming a global financial group FX, and controlling fixed costs. Additional
Slide 7: Financial Results
1. Key Strategy Overview 2. Financial Results 3. Global Vision and Strategies 4. Data 6
Slide 8: Major Business Activities this Quarter
Major Business Activities this Quarter ◆Promoted business integration with TradeStation and drew corporate roadmap Promoted system integration and drew up corporate roadmap (mid/long term plan) (Detailed after page 20) ◆Revenues taken in by market volatility in Japan, but U.S. market volume and VIX
Slide 9: Financial Summary: 3Q vs. 4Q of FYE Mar. 31, 2012
Financial Summary : 3Q of FYE Mar. 31, 2012 vs. 4Q of FYE Mar. 31, 2012 (in 3 months) （in million yen, %） 3Q of FYE Mar. 31, 2012 4Q of FYE Mar. 31, 2012 Change (Oct. 2011– Dec. 2011） (Jan. 2012– Mar. 2012） Operating Revenues 8,690 8,905 2.5% Net Operating Revenues 7,600 8,345 9.8% SG&A 7,396 7,822
Slide 10: Major Factors of Revenue and SG&A (Comparison with Previous Quarter)
Major Factors of Revenue and SG&A (Comparison with Previous Quarter) ■Revenue：Comparison with 3Q of FYE Mar. 31, 2012 ■SG&A：Comparison with 3Q of FYE Mar. 31, 2012 ◆Brokerage commission increased due to the increase of ◆ Cost increased due to IBFX contributed by 3 months equity trading values in Jap
Slide 11: Financial Summary: FYE Mar. 2011 vs. FYE Mar. 2012
Financial Summary : FYE Mar. 31, 2011 vs. FYE Mar. 31, 2012 (in 12 months) （in million yen, %） FYE Mar. 31, 2011 FYE Mar. 31, 2012 Change (Apr. 2010 – Mar. 2011） (Apr. 2011 – Mar. 2012） Operating Revenues 25,227 32,292 28.0% Net Operating Revenues 22,589 29,054 28.6% SG&A 17,848 26,605 49.1% Operati
Slide 12: Major Factors of Revenue and SG&A (Comparison with Last Fiscal Year)
Major Factors of Revenue and SG&A (Comparison with Last Fiscal Year) ■ Revenue：Comparison with FYE Mar. 31, 2011 ■ SG&A：Comparison with FYE Mar. 31, 2011 ◆ Increased due to the consolidation of TradeStation ◆ Increased due to the consolidation of TradeStation Increased by 6,464 million yen Increased
Slide 13: Balance Sheet (1)
Balance Sheet (1) ■ Keeping sufficient equity, liquidity and financing capability ◆Balance Sheet as of end of Mar. 2012 (*1) Non-current assets（investment value of risk assets） Property/equipment 1.3 (Facilities, equipment, etc) Current Asset Current Liabilities Software 3.3 (Assets to provide servi
Slide 14: Balance Sheet (2)
Balance Sheet (2) ■Goodwill/Intangible Asset ■ Investment securities ◆Breakdown of goodwill and identifiable intangible asset （in billion yen） for amortization Name of securities Acquisition Book Estimated Appraisal (Purpose for acquisition） cost value Value(*3) profit As of March Goodwill Identifia
Slide 15: Distribution of Consolidated Net Operating Revenues by Regions and Businesses
Distribution of Consolidated Net Operating Revenues by Regions and Businesses ■ 4Q FYE Mar. 31, 2012 (3 months) Financial Income Others FX business strengthened by 2 %3 % acquiring IBFX FX Options 7% Equities 2% 25 % Futures 9% China (HK) US+EU+AU 1％ 31 % Futures and Options 2 % Equities 8% Japan 68
Slide 16: Distribution of Consolidated SG&A by Regions and Contents
Distribution of Consolidated SG&A by Regions and Contents ■4Q FYE Mar. 31, 2012 (3 months) Most of the system development is outsourced in Japan and the amount of the Others systems related costs is large. 5％ Commissions paid Systems Advertising expenses 10 ％ related costs 24 ％ Communication, freigh
Slide 17: Distribution of Consolidated Personnel by Regions and Jobs
Distribution of Consolidated Personnel by Regions and Jobs ■As of the end of March 2012 System development is mostly outsourced in Japan and the number of (Total number of employees: 845) technology related employees is small. Technology 5％ IBFX Marketing 11 ％ 15 ％ 4％ Others China 9％ Japan (inc.HK)
Slide 18: Global Vision and Strategies
1. Key Strategy Overview 2. Financial Results 3. Global Vision and Strategies 4. Data 17
Slide 19: Background for the Global Vision
Background for the Global Vision ■Coping with local market bias issue Japan clients China Japan U.S. clients clients clients Idling Idling Trade Volume Trade Volume Capacity Capacity Idling Idling capacity capacity China Japan U.S. China Japan U.S. products products products products products produc
Slide 20: Concept of Shared Platform under the Global Vision
Concept of Shared Platform under the Global Vision ■Global Platform China clients Japan clients U.S. clients Website Website Website Call center Call center Call center Develop locally Marketing Marketing Marketing Compliance Compliance Compliance Information service Information service Information
Slide 21: Roadmap (1)
Roadmap (1) ■Measures to integrate systems and control cost FYE March 2013 FYE March 2014 FYE March 2015 FYE March 2016 Trading Implement MT4 to Monex Implement “TradeStation” Global FX platform FX and Monex, Inc. platform to Monex FX and Monex, Inc. Liquidity/risk Integrate liquidity/risk managemen
Slide 22: Roadmap (2)
Roadmap (2) ■ Measures to increase revenue - Establish brand image as a “Global & leading online financial company” General - Provide innovative financial services using in-house developed technology - Enrich services for smartphone and tablet PC users - Attract active traders from competitors by of
Slide 23: Global FX: Accelerating Global Expansion by Integrating IBFX
Global FX：Accelerating Global Expansion by Integrating IBFX ■Leverage group synergy to expand globally Monex, Inc. Monex FX TradeStation Forex (to be renamed as “IBFX, Inc.”) （Ex-TradeStation Forex） - Started as one of the first FX providers in Japan in - Targets FX traders as a FX - Offering “Trade
Slide 24: Global FX: Local Activities
Global FX: Local Activities ■Japan (Monex, Inc. and Monex FX) ■U.S. and Australia (TradeStation Forex) ◆Caught up earning opportunity in Feb. - Mar. ◆ Acquiring IBFX, FX became a core business in TradeStation Revenue (million yen) Trading volume (billion yen) Revenue (thousand dollar) Trading volume
Slide 25: Japan: Equity Business
Japan: Equity Business ■Equity business (Monex, Inc.) ■ Net operating revenues and market trading value ◆Market share of equity trading and equity trading values Total trading value of individual investors in 3 major stock exchanges Monex' s share in retail equity market and its equity trading value
Slide 26: Japan: Mutual Fund Business / Alternative Investment Business
Japan: Mutual Fund Business / Alternative Investment Business ■Mutual Fund Business (Monex, Inc.) ■ Alternative Investment Business (MAI) ◆ Trends in mutual fund sales and balance (billion yen) FYE March 2011 FYE March 2012 ◆ Further strengthening of the management setup 1Ｑ 2Ｑ 3Ｑ 4Ｑ 1Ｑ 2Ｑ 3Ｑ 4Ｑ For
Slide 27: U.S.: About TradeStation
U.S.: About TradeStation ■Overview ■Management Benchmark ◆ Comparison of DARTs(*1) among US listed brokerages 450 -Based on their disclosure Jan.-Mar. 2012 400 ◆ Company Overview 350 • Formed in 1982 as a trading platform provider. Initial Public 300 Monex, Inc. Offering in 1997 (listed on the NASDA
Slide 28: U.S.: About TradeStation and US Business Progress
U.S.: About TradeStation and US Business Progress ■Characteristics of TradeStation ■U.S. business progress ◆ TradeStation® (trading platform) ◆ New accounts growth continuing TradeStation® is an award winning direct-access trading TradeStation (excluding IBFX) new account growth platform which offer
Slide 29: China
China ■ Business in HK, Asia’s global financial center ■Business development in Mainland China ◆Targeting ultimately to initiate online brokerage business in Mainland China for retail investors, several ◆ Monex Boom Group Overview business possibilities are being discussed and Monex Boom Group offer
Slide 30: Data
1. Key Strategy Overview 2. Financial Results 3. Global Vision and Strategies 4. Data 29
Slide 31: Breakdown of Global DARTs and Global FX Volume by Region
Breakdown of Global DARTs and Global FX Volume by Region ■Global. DARTs: 4Q of FYE March 2012 (DARTs of Jan. – Mar. 2012) DARTs=Daily Average Revenue Trades (Equities, Options and Futures, FX and Mutual Funds) Monex, Inc. TradeStation Monex BOOM Monex FX, Inc. (U.S., etc.) Total: Global DARTs (China
Slide 32: Breakdown of Net Operating Revenues by Business
Breakdown of Net Operating Revenues by Business ■FYE Mar. 31, 2012 （12 months： Apr. 2011 to Mar. 2012） （in million yen） Business category Recurring revenue Variable revenue Total % Japan(Cash) 4,033 Japan 4,343 (Margin) 3,320 Equities U.S. 1,391 14,972 52% U.S. 1,528 Hong Kong 67 Hong Kong 288 Japan
Slide 33: Quarterly Breakdown of Consolidated Income Statement
Financial Results：Quarterly Breakdown of Consolidated Income Statement （in million yen） FYE Mar. 31, 2011 FYE Mar. 31, 2012 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Brokerage commissions( includes OSE-FX) 2,772 1,904 2,089 3,336 2,120 3,941 3,387 3,675 Stocks and ETFs 2,582 1,631 1,855 3,015 1,882 2,526 2,166 2,595
Slide 34: Quarterly Breakdown of Consolidated SG&A
Financial Results：Quarterly Breakdown of Consolidated SG&A （in million yen） FYE Mar. 31, 2011 FYE Mar. 31, 2012 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Transaction-related expenses 1,267 1,118 1,260 1,360 1,224 2,439 2,521 2,679 Commissions paid 246 217 220 237 238 1,038 1,034 933 Exchange and association dues 205
Slide 35: Financial Results: Overseas Subsidiaries
Financial Results：Overseas Subsidiaries (Income Statement) (SG&A) （in million yen） FYE Mar. 2012 FYE Mar. 2012 2Q 3Q 4Q 2Q 3Q 4Q U.S. H.K. U.S. H.K. U.S. H.K. U.S. H.K. U.S. H.K. U.S. H.K. Transaction-related expenses 1,222 30 1,357 23 1,350 28 Brokerage commissions 1,710 80 1,464 57 1,292 64 Commis
Slide 36: Corporate Governance
Corporate Governance ■Board of Directors and Management Team to Enforce Mid-Long Term Strategy ◆ Board of Directors from June 2012: ◆Board of Auditors: 2 external and independent out of 4 5 external (4 independent) directors out of 9 (to be proposed to AGM in June, 2012) Takeshi Tamaki Full time, ex
Slide 37: Investors' Guide
Investors’ Guide ■Pursuing investment returns for our shareholders ◆Basic policy for shareholder’s return Major shareholders and share distribution ・Reserving necessary capital as a growing company, the - Total number of issued shares as of the end of March 2012: company aim to provide return to it
Slide 38: The Monex Group
The Monex Group Holding Company （As of April 26, 2012） [ China ] [ Japan ] [ US/EU ] Online Securities Company Asset Management Monex International Limited Asia business base in Hong Kong Providing the best alternative investment TradeStation Group, Inc. Online Securities Company Holding company in