Slide 1: Financial Results of Fiscal Year Ended March 31, 2007
April 24, 2007 Financial Results of Fiscal Year Ended March 31, 2007 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 for FYE March 2007. If there is a
Slide 2: Our Business Principles
Our Business Principles - PURSUING SPIRIT OF INNOVATION We will constantly strive to pioneer new fields in finance and propose new approaches to managing money. - 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 3: Table of Contents
Table of Contents I. Financial Results Page 1. Financial Highlights ・・・ 4 III. To Our Shareholders Page 2. Financial Summary (1) FYE Mar. 31, 2006 vs. FYE Mar. 31, 2007 1. ROE and Dividend ・・・ 28 (12 months) ・・・ 5 2. Dividend Policy and New Management ・・・ 29 (2) 4Q of FYE Mar. 31, 2006 vs. 4Q of FYE
Slide 4: 1. Financial Results
1. Financial Results 2. Business Strategy and Future Development 3. To our Shareholders 4. Appendix 3
Slide 5: Financial Highlights
Financial Highlights ■FYE Mar. 31, 2007 Financial Highlight • Net operating revenues totaled 31,099 million yen (-17.8% vs. FYE Mar. 31, 2006), due to the decrease in trading value in the stock markets • Dependency on brokerage business(*) was 83% (-3pt vs. FYE Mar. 31, 2006) • SG&A totaled 14,540 m
Slide 6: Financial Summary: FYE Mar. 2006 vs. FYE Mar. 2007 (12 months)
Financial Summary : FYE Mar. 31, 2006 vs. FYE Mar. 31, 2007 (in 12 months) (in million yen, %) FYE Mar. 31, 2006 FYE Mar. 31, 2007 Change (Apr. 2005-Mar. 2006) (Apr. 2006-Mar. 2007) Operating Revenues 39,223 33,244 -15.2％ Net Operating Revenues 37,811 31,099 -17.8％ SG&A 12,636 14,540 +15.1％ Operatin
Slide 7: Financial Summary: 4Q FYE Mar. 2006 vs. 4Q FYE Mar. 2007
Financial Summary : 4Q of FYE Mar. 31, 2006 vs. 4Q of FYE Mar. 31, 2007 (in 3 months) (in million yen, %) 4Q of FYE Mar. 31, 2006 4Q of FYE Mar. 31, 2007 Change (Jan. 2006-Mar. 2006) (Jan. 2007-Mar. 2007) Operating Revenues 11,995 8,657 -27.8％ Net Operating Revenues 11,686 7,978 -31.7％ SG&A 3,662 3,
Slide 8: Financial Summary: 3Q vs. 4Q of FYE Mar. 2007
Financial Summary : 3Q of FYE Mar. 31, 2007 vs. 4Q of FYE Mar. 31, 2007 (in 3 months) (in million yen, %) 3Q of FYE Mar. 31, 2007 4Q of FYE Mar. 31, 2007 Change (Oct. 2006-Dec. 2006) (Jan. 2007-Mar. 2007) Operating Revenues 7,755 8,657 +11.6％ Net Operating Revenues 7,086 7,978 +12.6％ SG&A 3,548 3,77
Slide 9: Financial Summary: Financial Highlights (Quarterly Trend)
Financial Summary：Financial Highlights (Quarterly Trend) ■Net operating revenues and Operating Income ■SG&A million yen billion yen million yen 20,000 Trading Value of Individual Investors 2,000 10,000 in 3 major markets and JASDAQ (Average per business day)(right) 8,000 18,000 1,800 6,000 Net opera
Slide 10: Financial Summary: Profit Margin and Cost Structure
Financial Summary：Profit Margin and Cost Structure ■Profit Margin (Operating income/Operating revenues) ■Cost Structure (Jan. 2007 - Mar. 2007) 80% Strategically Fixed costs and costs controllable costs correlated to the number of accounts 70% 67% Commission to stock exchange etc. 60% Advertisement
Slide 11: Financial Summary: Quarterly Trends in Income Statement
Financial Summary：Quarterly Trends in Income Statement (in million yen) 1Q of FYE 2Q of FYE 3Q of FYE 4Q of FYE 1Q of FYE 2Q of FYE 3Q of FYE 4Q of FYE Mar. 31, Mar. 31, Mar. 31, Mar. 31, Mar. 31, Mar. 31, Mar. 31, Mar. 31, 2006 2006 2006 2006 2007 2007 2007 2007 Brokerage commissions 3,988 6,064 8,
Slide 12: Financial Summary: Quarterly Trends in SG&A
Financial Summary：Quarterly Trends in SG&A (in million yen) 1Q of FYE 2Q of FYE 3Q of FYE 4Q of FYE 1Q of FYE 2Q of FYE 3Q of FYE 4Q of FYE Mar. 31, Mar. 31, Mar. 31, Mar. 31, Mar. 31, Mar. 31, Mar. 31, Mar. 31, 2006 2006 2006 2006 2007 2007 2007 2007 Transaction-related expenses 886 1,121 1,540 1,7
Slide 13: Revenues/SG&A per Customers' Assets in Custody
Comparison Analysis : Revenues/SG&A per Customers’ Assets in Custody Direction (Annualized) 3.0% 1. Revenues per customers’ assets in custody Rakuten Securities Continue to grow equity brokerage business as a main revenue Holdings Matsui (Consolidated) source, and intensively strengthen fixed income
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 a total financial service provider, not just as an online brokerage firm Offer comprehensive products and service line-ups with “World Class Quality” Support passive investors to manage his/her financial assets efficiently Strengthen “Products Origination C
Slide 16: Current Environment Recognition
Current Environment Recognition With Japanese population having started to decline and economic growth slowing down, Japanese individuals’ asset management is forced to be more proactive, which expands Monex’s role. ≪until Recently≫ ≪from Now on≫ • With less life security after retirement by governm
Slide 17: Goals and Strategies
Goals and Strategies ■Monex’s Key Goal Monex’s business model is enhanced by “Three Strategies” and “Investment Education Efforts” 《 Monex’s Model 》 《 Existing Securities Firms’ Model 》 Issuers of Stocks and Bonds/ Securities Issuers of Stocks and Bonds/ Investment Management Firms Exchange Investme
Slide 18: SG&A Budget in FYE Mar. 31, 2008
SG&A Budget in FYE Mar. 31, 2008 ■Basic Policy ・ Controlling SG&A and keeping low cost structure by targeting SG&A per customers’ assets’ in custody as key performance index ・ Strategically allocating budget to product origination, etc. ■Three Main Points 1. Adjustment of marketing and investors' ed
Slide 19: Current and Future Structure of Revenues and Customers' Assets by Product
Current and Future Structure of Revenues and Customers’ Assets by Product 【Current Structure (FYE Mar. 2007)】 Direction of Each Business Line 【Future Structure】 Managed assets Underwriting 2% Underwriting (Mutual funds, etc.) 1. Stock Brokerage Business Managed assets Others 2% 4%(+2 points) 6% • Pr
Slide 20: Brokerage Business: Strengthening our original products and services
Brokerage Business : Strengthening our original products and services ■ Expansion of Original Products ■ Enhancement of Cell Phone Trading ◆ Monex Night Time Trading: Expanding trading value ◆ Setting cheaper price for cell phone trading Billion yen (Monex) Trillion yen (TSE) 25 Trading Value of Mon
Slide 21: Underwriting Business: Increase lead manager mandates and underwriting shares
Underwriting Business： Increase both lead manager mandates and underwriting shares ■Track Records ■ For Improvement of IPO Track Records ■Underwriting date basis ◆Environment Recognition Number of IPO deals Value of IPO deals (hundred million yen) ・Revision of underwriting due diligence process by 1
Slide 22: Fixed Income Business: Enriching products and services
Fixed Income Business ：Enriching products and services ■New Product and Services ■Foreign Bond Holders Number of Foreign Bond Holders ◆ Offering new products and services to meet the needs of our clients 12,000 10,000 HIGH 8,000 “Structured” Notes （Knock-In Dual) 6,000 Mane-Ichi Credit Risk: Over AA
Slide 23: FX Business: The further expansion of FX trading
FX Business： The further expansion of FX trading ■Transition of FX Accounts and Trading Volume ■New Currency Pair Trades are Popular Billion yen Number of Accounts 400 60,000 ◆Monex FXpro introduced in January, 2007 Trading Volume 350 Number of Accounts 50,000 The currency pairs available are broad
Slide 24: Mutual Fund Business: Pioneer among online distributors
Mutual Fund Business：Pioneer among online distributors ■Grand success in the sales of the new original fund ■Top-class online mutual fund sales forces New original Fund: “Monex Asset Planning Fund” Top ranked online mutual fund sales performance Assets in custody and Number of accounts （number of
Slide 25: Alternative Investments: World class investment opportunities for retail investors
Alternative Investments : World class investment opportunities for retail investors ■Broadening Alternative Investment Opportunities ■ Private Equity Investments for Retail Investors ◆ “Asia Focus” ◆Premium Hybrid 2006 ・Diversified investment through hedge funds in Japan and Asia ・Epoch making fund
Slide 26: Topics
Topics ■ “Kabu-Robo” Project ■Innovative “real time trading tool” “ Monex Trader” series ◆ On February 20, 2007, actual trading using automated βversion released on Apr.16th, 2007 stock trading programs (“Kabu-Robos”) started ・10 winners of Kabu-Robo contest held by Trade Science are advising for 50
Slide 27: Investor Education
Investor Education: Providing appropriate educational opportunities of investment for many people ■Providing Many Education Opportunities ■Improvement Financial literacy ◆Continuously holding seminars ◆”Monex Money Seminar” ・ From April 2006 to March 2007 ・ Serial Advertisement on nationwide newspap
Slide 28: 3. To our Shareholders
1. Financial Results 2. Business Strategy and Future Development 3. To our Shareholders 4. Appendix 27
Slide 29: ROE and Dividend
ROE and Dividend ■Pursuing Investment Return to Our Shareholders ◆ROE ◆Dividend & Payout Ratio ・Dividend payout ratio: approx. 50% of previous year’s 50% Net Income of subsidiary, Monex,Inc. ⇒Dividend for FYE Mar.2007 2,900 yen (Planned) ・Sustaining high dividend payout ratio 40% 38.1% Yen Dividend
Slide 30: Dividend Policy and New Management
Dividend Policy and New Management ■Dividend Policy starting FYE March, 2008 ■New Management ◆Dividend Calculation Formula ◆Board of Representatives * Reappointed ** Newly appointed ・Present * Representative Director, Oki Matsumoto President & CEO Net profit of subsidiary, Monex, Inc.’s previous fis
Slide 31: Disclosure
Disclosure ■Clear and Timely Disclosure Clearest disclosure among the industry Major shareholders and share distribution Disclosure Frequency Language Started (Recorded as of the end of March 2007) Accounts, etc. Weekly/Monthly English 1999 Major shareholders Top 3 shareholders Japanese Financial
Slide 32: 4. Appendix
1. Financial Results 2. Business Strategy and Future Development 3. To our Shareholders 4. Appendix 31
Slide 33: Customer Portfolio (As of March 31, 2007)
Customer Portfolio (As of March 31, 2007) ■Gender ■Location Others Female 22.8% 24.5% Tokyo Metropolitan District Nagoya District 50.9% Male 8.4% 75.5% Osaka District 17.9% ■Age ■Occupation Company Employee 48.0% Over 70 2.8% Unemployed 16.6% 60s 9.8% Self-employed 9.6% 50s 17.1% Housewife 9.7% 40s
Slide 34: Marketing Strategy
Marketing Strategy ■Events ■Online Seminars “Asset Management Seminar 2007” Start Online Seminars regularly Jointly held with Nikkei BP Online Seminar Screen January 28th, 2007 New Takanawa Prince Hotel ・Approximately 3,000 participants ・ Held almost everyday ・Seminars on Asset management by Mon
Slide 35: Competitive Services and Products: For all customers' satisfaction
Competitive Services and Products: For all customers’ satisfaction (As of April 17, 2007) Fixed Equity Mutual Fund Alternative Others Income Small Stock Credit Night China/ Stop China U.S Time Unit Program Lending JGB/ Monthly India High Low Commot- Settle- Loss Trading Trading Foreign Auction Purch
Slide 36: Comparison with Major Securities Firm
Comparison with Major Securities Firm ■Customers’ assets in custody ■Net Operating Revenues ■SG&A （as of September 30, 2006） 2Q of FYE Mar. 31, 2007 (3 months) 2Q of FYE Mar. 31, 2007 (3 months) Although Monex has diversified Customers’ assets Major securities firm has diversified revenue Monex has
Slide 37: The Monex Group
The Monex Group （as of End of March, 2007） Investment Education for all Providing the Best Alternative Investment Individual Investors Products to Individual Investors （Investment Ratio） MBH : 70% Monex, Inc. (Investment Ratio) MBH : 55% Premium Online Financial Institution : 45% 10% 10% 10% (Invest
Slide 38: (Additional Material)
( Additional Material) Monex Beans Holdings, Inc. 37
Slide 39: Strategic Alliance between MS and eBANK
Strategic Alliance between MS and eBANK Linking first-class product origination capability and safe and useful settlement function engineered by IT Providing best financial products and services from savings to investment for a broad range of customers Savings Deposit Electronic Money Foreign Curren