Slide 1: Financial Results of Fiscal Year Ended March 31, 2008
April 28, 2008 Financial Results of Fiscal Year Ended March 31, 2008 This is an English translation of Japanese presentation material prepared for IR conference held on the date above; it includes the information on consolidated financial summary under Japanese GAAP. If there is any discrepancy betw
Slide 2: Important Matters Concerning Product-related Risks
Important Matters Concerning Product-related Risks This material is explanatory material on financial results of Monex Beans Holdings, Inc. (“MBH”). The descriptions herein concerning the products, services, etc. which are handled by Monex, Inc. (“Monex”), which is one of the Company’s subsidiaries,
Slide 3: Our Business Principles
Our Business Principles 1.PURSUING SPIRIT OF INNOVATION We will constantly strive to pioneer new fields in finance and propose new approaches to managing money. 2.STAYING CUSTOMER FOCUSED We believe that the best guide to our corporate activities is the voice of our customers. With this guide, we wi
Slide 4: Table of Contents
Table of Contents Important Matters Concerning Product-related Risks ･･･ p.1 2. Business Summary Our Business Principles ･･･ p.2 (1) Brokerage Business - Stock Brokerage Business ･･･ p.19 I. Financial Results - Fixed Income Business ･･･ p.20 - FX Business ･･･ p.21 1. Financial Highlights ･･･ p.5 2.
Slide 5: 1. Financial Results
1. Financial Results 2. Business Strategy and Future Development 3. To our Shareholders 4. Appendix 4
Slide 6: Financial Highlights
Financial Highlights ■4Q of FYE Mar. 31, 2008 Financial Highlight • Net operating revenues totaled 6,118 million yen (-11.8% vs. 3Q of FYE Mar. 31, 2008) due to the decrease in trading value • Dependency on brokerage business(*1) was 77% (-1pt vs. 3Q of FYE Mar. 31, 2008). • SG&A totaled 3,387 milli
Slide 7: Financial Summary: 3Q vs. 4Q of FYE Mar. 31, 2008
Financial Summary : 3Q of FYE Mar. 31, 2008 vs. 4Q of FYE Mar. 31, 2008 (in million yen, %) 3Q of FYE 4Q of FYE Mar. 31, 2008 Mar. 31, 2008 Change (Oct. 2007-Dec. 2007) (Jan. 2008-Mar. 2008) Operating Revenues 7,979 6,771 -15.1％ Net Operating Revenues 6,937 6,118 -11.8％ SG&A 3,471 3,387 -2.4％ Operat
Slide 8: Financial Summary: FYE Mar. 2007 vs. FYE Mar. 2008
Financial Summary : FYE Mar. 31, 2007 vs. FYE Mar. 31, 2008 (in 12 months) (in million yen, %) FYE FYE Mar. 31, 2007 Mar. 31, 2008 Change (Apr. 2006-Mar. 2007) (Apr. 2007-Mar. 2008) Operating Revenues 33,244 30,497 -8.3％ Net Operating Revenues 31,099 26,988 -13.2％ SG&A 14,540 13,971 -3.9％ Operating
Slide 9: Financial Highlights (Quarterly Trend)
Financial Summary：Financial Highlights (Quarterly Trend) ■Net operating revenues and Operating Income ■ROE (Annualized) (million yen) (billion yen) 60% Total Trading Value 20,000 of Individual Investors 1,600 50% in 3 major stock exchanges and JASDAQ 40% 18,000 (Average per business day)(right) 1,40
Slide 10: Profit Margin and Cost Structure
Financial Summary：Profit Margin and Cost Structure ■Profit Margin ■Cost Structure (Jan. 2008 - Mar. 2008) (Operating income/ Net Operating revenues)* 60% Strategically 53% Fixed costs and costs 48% 50% 50% controllable costs 50% 45% correlated to the number of accounts 40% Commission to stock exchan
Slide 11: Quarterly Trends in Income Statement
Financial Summary：Quarterly Trends in Income Statement (in million yen) FYE Mar.31, 2007 FYE Mar.31, 2008 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Brokerage commissions 6,023 4,687 4,504 5,395 4,228 4,160 4,022 3,692 Underwriting and distribution commissions 61 58 286 32 19 77 5 9 Subscription and distribution commi
Slide 12: Quarterly Trends in SG&A
Financial Summary：Quarterly Trends in SG&A (in million yen) FYE Mar.31, 2007 FYE Mar.31, 2008 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Transaction-related expenses 1,661 1,551 1,482 1,532 1,361 1,310 1,151 1,099 Commissions paid 237 219 214 217 231 248 245 233 Exchange and association dues 236 192 189 215 180 168 17
Slide 13: Revenues/SG&A per Customers' Assets in Custody
Comparison Analysis : Revenues/SG&A per Customers’ Assets in Custody (Annualized) Direction : Low cost / portfolio management-oriented business 3.0% 1. Revenues per customers’ assets in custody Continue to grow equity brokerage business, and intensively Matsui strengthen managed assets business incl
Slide 14: 2. Business Strategy and Future Development
1. Financial Results 2. Business Strategy and Future Development 3. To our Shareholders 4. Appendix 13
Slide 15: Mission Statement
Mission Statement Take position as an integrated financial service provider for individual investors, not just as an online brokerage firm Propose products and services to investors who are not active traders seeking market conditions Offer comprehensive products and services with “World Class
Slide 16: The Monex Group
The Monex Group （As of April 1, 2008） Securities Company Asset Management Investment Education FX Business M&A Advisory Investor Education for all Overseas subsidiary Business Individuals and office Monex, Inc. Incubation Providing the Best Alternative Investment （Investment Ratio） Products to Indiv
Slide 17: Current Environment Recognition
Current Environment Recognition Financial Assets Held by Households (End of Dec.2007) ■Increasing Asset Management by Individuals Bonds Mutual Private Funds Equities Others 2.9 4.7 4.8 4.7 With Japanese population having started to decline Japan Currency & Depo Shares Insurance & Pension Reserves 50
Slide 18: Monex's Business Model
Monex’s Business Model Asset management business shall be a major growth field in addition to stock brokerage services Wide line up of financial products, Gain competitive advantages by not only distributing investment products online including Monex’s original at low cost but also originating hig
Slide 19: Current and Future Structure of Revenues and Customers' Assets by Product
Current and Future Structure of Revenues and Customers’ Assets by Product ■Strengthen mutual fund business and diversify revenue sources 【Current Structure (FYE Mar. 2008)】 Direction of Each Business Line 【Future Structure】 Investment Banking （Overseas Business development plan is not included) Inve
Slide 20: Stock Brokerage Business: Enhancing products and services for Day Traders
Stock Brokerage Business： Enhancing products and services for Day Traders ■Providing More Convenience for Day Traders ■Improvement and Enhancement of Services ◆Margin trading and futures/options accounts increase ◆Increase of unique trading tool “Monex Trader” users ・Accounts increase by campaigns a
Slide 21: Fixed Income Business: Aiming for efficient cross-sell
Fixed Income Business ：Aiming for efficient cross-sell ■Products to meet and Customer Needs ■Effects of “Monex Short-term Notes for Individuals” ◆“Monex Short-term Notes for Individuals” Series ◆ Cross-sell from “Monex Short-term Notes for Individuals” ・ Continuous issue #1-#7 within 10 business day
Slide 22: FX Business: Aiming for No.1 in the industry
FX Business: Aiming for No.1 in the industry ■Performance of FYE March 2008 ■Overview of FYE March 2009 ◆Steady Growth ◆ April 1, 2008 Acquisition of Tokyo Forex Co., Ltd. 4/28/2007 Increase in margin balance almost Aiming to expand our FX business by taking advantage Reduced commission reaching of
Slide 23: Mutual Fund Business: No.1 Online mutual fund sales
Mutual Fund Business : No.1 Online mutual fund sales ■Strengthen Product lines and services ■Top-class online Mutual Fund Sales to Expand Mutual Fund Balance ◆Sales volume and balance ◆Keeping the top position in online mutual fund sales （billion yen （billion yen Total sales amount of equity mutual
Slide 24: Alternative Investment Business: Expanding business to institutional investors
Alternative Investment Business： Expanding business to institutional investors ■ Monex Alternative Investments ends in the black ■ Distinctive products line up for retail investors （million yen） FYE FYE ◆ Asia Focus Mar.2007 Mar.2008 ・Diversified investment in Asia and Japan HF from 10,000 yen ・Annu
Slide 25: Investment Banking Business
Investment Banking Business ： M&A advisory services started and synergy with IPO underwriting business expected ■IPO Underwriting Business ■M&A Advisory Business IPO League Table Value of IPO Deals （FYE March 2008） (hundred million yen) http://www.wrh.co.jp/ Rank Name Deals 120 1 Mitsubishi UFJ 59 4
Slide 26: Related Businesses: Life Insurance and Kabu-Robo
Related Businesses, etc. ■Life Insurance ■“Kabu-Robo” Project LIFENET INSURANCE COMPANY http://www.kaburobo.jp/ http://www.lifenet-seimei.co.jp/ (New URL to activate on May 18, 2008) “Kabu-robo” (Automated stock trading program) Project ◆In March 2008, Lifenet Insurance Co., Ltd. issued new Investme
Slide 27: Related Businesses: Alliance with eBANK, Contact Center
Related Businesses, etc. ■ Alliance with eBANK ■ Contact Center (Monex, Inc.) ◆Activities to date (September 2007 through March 2008) ◆Developing a high quality and next generation contact center featuring advice engine ・Started financial instruments intermediary business × ・Foster human resources u
Slide 28: Overseas Business: Substantial progress to access overseas markets
Overseas Business: Substantial progress to access overseas markets ■ Opened Beijing Representative Office in China ■Businesses of MBH America (U.S. subsidiary) ◆Monex Beans Holdings, Inc. Beijing ◆Research into the most advanced financial products and the global financial industry ・Established on Ma
Slide 29: Investor Education
Investor Education: Providing information and investment advice tools to improve investor’s financial literacy ■Continuous seminars and e-learning services ■ R&D on Investment Management Theory ◆Educational Seminars ( from April 2007 to March 2008 ) ◆Establishment of the “Intelligence Infrastructure
Slide 30: 3. To our Shareholders
1. Financial Results 2. Business Strategy and Future Development 3. To our Shareholders 4. Appendix 29
Slide 31: ROE and Dividend
ROE and Dividend ■Pursuing Investment Return to Our Shareholders ◆Dividend Payout Policy ◆ROE ・Calculation formula (from FYE March, 2008) 50% Approx. 50% of Consolidated net income of MBH’s current fiscal year ・Interim dividends to be paid out 40% ◆Dividend Record ・JPY900 paid out as interim dividen
Slide 32: Investors' Guide
Investors’ Guide ■Stock Information ◆Share price and volume Major shareholders and share distribution Price（yen） Volume (shares) (Recorded as of the end of March 2008) 2,500,000 250,000 Major shareholders Top 3 shareholders Financial Institutions 4.89% Nikko Cordial Group 26.29% 2,000,000 200,000 S
Slide 33: 4. Appendix
1. Financial Results 2. Business Strategy and Future Development 3. To our Shareholders 4. Appendix 32
Slide 34: Additional Data
Additional Data ◆Cash Inflow/Outflow ◆Total Number of Accounts (100 million yen) 860,000 700 840,000 入金額 Inflow 820,000 600 Outflow 出金額 800,000 780,000 500 760,000 740,000 400 720,000 700,000 300 1 2 2 3 8 9 0 1 4 5 6 7 /0 /0 /0 /1 /1 /1 /0 /0 /0 /0 /0 /0 08 08 08 07 07 07 07 07 07 07 07 07 20 20 20
Slide 35: Customer Portfolio (as of March 31, 2008)
Customer Portfolio (as of March 31, 2008) ■Sex ■District Others Female 23.1% 25.1% Tokyo Metropolitan District Nagoya District 50.6% Male 8.4% 74.9% Osaka District 17.9% ■Age ■Occupation Company Employee 会社員 47.9% 70代以上 Over 70 3.1% Unemployed 就業なし 16.8% 60s 60代 10.7% Self-employed 自営業 9.5% 50s 50代
Slide 36: Major Initiatives of FYE March 2008
Major Initiatives of FYE March 2008 2007 Apr. Capital and business alliances with eBANK (MBH and Monex) May MBH accepts the 1st allocation of new shares by Net Life Planning Jun. Issue and offer of yen denominated short term notes (MBH and Monex) Aug. Monex co-manages China Boqi Environment to list
Slide 37: Monex Beans Holdings will change its name to Monex Group
Monex Beans Holdings, Inc. will change its name to Monex Group, Inc. as of July 1, 2008 （In Accordance with the resolution at the Annual Shareholder’s Meeting to be held in June 2008） 36
Slide 38: Risks and Fees Related to Monex's Products Described Herein
Risks and Fees Related to Monex’s Products Described Herein Details of Monex, Inc. (our subsidiary) Company name (trade name): Monex, Inc. Financial instrument firm Registration number: Director of Kanto Local Finance Bureau (Kinsho) No. 165 Industry organization membership: Japan Securities Dealers
Slide 39: Risks and Fees: Chinese Shares
Risks and Fees Related to Monex’s Products Described Herein Important Matters concerning Chinese Shares ▪ Risks Price fluctuation risk: A loss of the initial investment (loss of invested principal) may be incurred due to fluctuation in stock price caused by demand and other various factors (generall
Slide 40: Risks and Fees: Investment Trust
Risks and Fees Related to Monex’s Products Described Herein Important Matters concerning Investment Trust ▪ Risks The base value of the investment trust may rise or fall since the investment trust substantially invests in securities with fluctuating prices. Therefore, the invested principal and inte
Slide 41: Risks and Fees: Asia Focus
Risks and Fees Related to Monex’s Products Described Herein Important Matters Concerning “Asia Focus” ▪ Risks - The base value of the Fund is subject to fluctuation since the Fund will mainly invest in securities exposed to price movement such as corporate and government bonds. Therefore, the invest
Slide 42: Risks and Fees: China Focus
Risks and Fees Related to Monex’s Products Described Herein Important Matters concerning “China Focus” ▪ Risks - The base value of the Fund is subject to fluctuation since the Fund will mainly invest in securities exposed to price movement, such as equities (the Fund will be exposed to foreign excha
Slide 43: Risks and Fees: MENA Asia Equity Fund
Risks and Fees Related to Monex’s Products Described Herein Important Matters concerning “Middle East and North Africa (“MENA”) Asia Equity Fund” ▪ Risks - The Fund mainly invests in investment trust securities. The investors may suffer losses from the decline in base value caused by downfall of the
Slide 44: Risks and Fees: Sparx Japanese Equity Fund
Risks and Fees Related to Monex’s Products Described Herein Important Matters concerning “Sparx New Internationally High-Grade Japanese Equity Fund” ▪ Risks - The Fund mainly invests in Japanese stocks. The investors may suffer losses from the decline in base value caused by downfall of the price of
Slide 45: Risks and Fees: Bond Trading
Risks and Fees Related to Monex’s Products Described Herein Important Matters concerning Bond Trading ▪ Risks - In a case where bonds are sold before maturity, a loss of original investment (loss of invested principal) may be incurred from a lower sales price compared to purchase price due to changi
Slide 46: Risks and Fees: Monex Bonds for Individual Investors
Risks and Fees Related to Monex’s Products Described Herein Important Matters concerning [Monex Bonds for Individual Investors] ▪ Risks Basically, the market price of yen-denominated bonds fluctuates in accordance with the changes in the base interest rate of the market. The price of bonds will fall
Slide 47: Risks and Fees: Futures Trading and Option Trading
Risks and Fees Related to Monex’s Products Described Herein Important Matters concerning Futures Trading and Option Trading ▪ Risks - Since the price of stock index futures/option trading is subject to fluctuation in the subject stock index and other factors, the investor may suffer losses exceeding
Slide 48: Risks and Fees: FX
Risks and Fees Related to Monex’s Products Described Herein Important Matters concerning “FX” ▪ Risks Price fluctuation risk: If the foreign exchange rate fluctuates in a direction that is reverse to the investor's anticipation due to fluctuation in the price of the traded currency (exchange rate) a