Monex Group, Inc. · TSE:8698
Monex — Q1 FY2021 Earnings Presentation
37 slides from Monex's earnings presentation, Jul 29, 2020
Slide 1: Databook: Financial Results for 1Q of Fiscal Year Ending March 31, 2021
July 29, 2020 (TSE 1st Section: 8698) DATABOOK Financial Results for 1Q of Fiscal Year Ending March 31, 2021 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
Slide 2: Table of Contents
Table of Contents [Data Book] Table of Contents p.1 1. Market & Transaction Data p.2 - p.12 2. Financial Data p.13 - p.36 1
Slide 3: 1. Market & Transaction Data
1. Market & Transaction Data 2. Financial Data 2
Slide 4: Market and Transaction Data (1) – Customers' Assets in Custody
Market and Transaction Data (1) – Customers’ Assets in Custody (JPY million) Japan Segment U.S. Segment Asia-Pacific Segment Crypto Asset Segment 6,000,000 5,000,000 4,000,000 3,000,000 2,000,000 1,000,000 0 As of As of As of As of As of As of As of As of As of Jun.30, 2018 Sep.30, 2018 Dec.31, 2018
Slide 5: Market and Transaction Data (2) – Number of Employees
Market and Transaction Data (2) – Number of Employees (person） Japan Segment U.S. Segment Asia-Pacific Segment Crypto Asset Segment 1,000 500 0 As of As of As of As of As of As of As of As of As of Jun.30, 2018 Sep.30, 2018 Dec.31, 2018 Mar.31, 2019 Jun.30, 2019 Sep.30, 2019 Dec.31, 2019 Mar.31, 202
Slide 6: Market and Transaction Data (3) – Japan Segment - Monex, Inc. (Number of accounts)
Market and Transaction Data (3) – Japan Segment - Monex, Inc. (Number of accounts) ◆Number of total accounts & active accounts (account） Total accounts Active accounts 2,000,000 1,500,000 1,000,000 500,000 0 As of Jun. 30, As of Sep. 30, As of Dec. 31, As of Mar. 31, As of Jun. 30, As of Sep. 30, As
Slide 7: Market and Transaction Data (4) Japan Segment - Equities and ETFs
Market and Transaction Data (4) Japan Segment - Monex, Inc. (Equities and ETFs ) ◆Market share and value of equity trading ◆ Monex’s cash & margin trading value and margin balance Monex’s share in retail trading value of 2 major stock exchanges and (JPY 100million) its equity trading values (%) Cash
Slide 8: Market and Transaction Data (5) Japan Segment - Mutual Funds & Bonds
Market and Transaction Data (5) Japan Segment - Monex, Inc. (Mutual Funds & Bonds) ◆Mutual Funds (Sales and Balance) ◆Fixed Income Businesses (Sales of non-domestic bonds) (JPY million) Sales of Investment Trusts(no-load) (left) (JPY million) (JPY million) 80,000 Sales of Investment Trusts(load) (le
Slide 9: Market and Transaction Data (6) Japan Segment - FX
Market and Transaction Data (6) Japan Segment - Monex, Inc. (FX) ◆OTC FX business (JPY million) (JPY 100million) 1,500 350,000 FX revenue (left) Trading value (right) 300,000 250,000 1,000 200,000 150,000 500 100,000 50,000 0 0 1Q of FYE 2Q of FYE 3Q of FYE 4Q of FYE 1Q of FYE 2Q of FYE 3Q of FYE 4Q
Slide 10: Market and Transaction Data (7) Japan Segment – Customer distribution
Market and Transaction Data (7) Japan Segment – Monex, Inc. (Customer distribution) ◆Active accounts by gender and age ◆Active accounts by occupation Corporate Professional Corporation executive (e.g. Doctor) All accounts Accounts opened within a year 30% 35% Self-employed Civil servant Homemaker 25
Slide 11: Market and Transaction Data (8) Japan Segment - Capital Adequacy Ratio
Market and Transaction Data (8) Japan Segment - Monex, Inc. (Capital Adequacy Ratio) ◆Capital adequacy ratio (JPY million) 50,000 500% Risk asset amount （left） Non-fixed capital （left） Capital adequacy ratio （right） 40,000 400% 30,000 300% 20,000 200% 10,000 100% 0 0% As of As of As of As of As of A
Slide 12: Market and Transaction Data (9) U.S. Segment – TradeStation Group
Market and Transaction Data (9) U.S. Segment – TradeStation Group ◆ Numbers of active accounts (*1) ◆ DARTs and VIX(*2) （thousand） (account) 200 40 140,000 Futures DARTs(left) Options DARTs(left) 120,000 Equities DARTs(left) Vix Close Avg. (right) 150 30 100,000 80,000 100 (*3) 20 60,000 40,000 50 1
Slide 13: Market and Transaction Data (10) Asia-Pacific Segment
Market and Transaction Data (10) Asia-Pacific Segment Monex Boom Securities+Monex Securities Australia ◆ Numbers of accounts with balances ◆ DARTs (account) 4,000 15,000 12,000 3,000 9,000 2,000 6,000 1,000 3,000 0 0 As of Jun. As of Sep. As of Dec. As of Mar. As of Jun. As of Sep. As of Dec. As of
Slide 14: 2. Financial Data
1. Market & Transaction Data 2. Financial Data 13
Slide 15: Consolidated financial results
Consolidated financial results (JPY million) 1Q FYE Mar. 1Q FYE Mar. Variance Change 2020 2021 Commission received 5,721 8,506 2,785 48.7% Net trading income 2,304 1,782 -522 -22.6% Financial income 4,930 3,735 -1,195 -24.2% Other operating income 198 245 47 23.8% Total operating revenue 13,153 14,2
Slide 16: Consolidated financial results (Reclassified)
Consolidated financial results (Reclassified) Reclassified consolidated statement of income (JPY million) 1Q FYE Mar. 2020 1Q FYE Mar. 2021 Variance Change Brokerage commissions 4,341 6,559 2,218 51.1% Stocks and ETFs 2,575 4,414 1,839 71.4% Options and Futures 1,737 2,136 399 23.0% Cryptocurrency 2
Slide 17: Consolidated financial results (SG&A)
Consolidated financial results (SG&A) The details of SG&A in consolidated statement of income (JPY million) 1Q FYE Mar. 2020 1Q FYE Mar. 2021 Variance Change Transaction-related expenses 2,881 3,172 291 10.1% Commissions paid 1,160 1,313 153 13.2% Exchange and association dues 179 270 91 50.9% Commu
Slide 18: Quarterly consolidated financial results (Reclassified)
Quarterly consolidated financial results (Reclassified) Reclassified consolidated statement of income (JPY million) FYE Mar. 2020 FYE Mar. 2021 1Q 2Q 3Q 4Q 1Q Brokerage commissions 4,341 4,328 4,663 6,052 6,559 Stocks and ETFs 2,575 2,566 3,084 3,797 4,414 Options and Futures 1,737 1,748 1,576 2,249
Slide 19: Quarterly consolidated financial results (SG&A)
Quarterly consolidated financial results (SG&A) The details of SG&A in consolidated statement of income (JPY million) FYE Mar. 2020 FYE Mar. 2021 1Q 2Q 3Q 4Q 1Q Transaction-related expenses 2,881 2,834 2,831 3,429 3,172 Commissions paid 1,160 1,151 1,066 1,404 1,313 Exchange and association 179 182
Slide 20: Quarterly consolidated financial results (Other income and other expenses)
Quarterly consolidated financial results (Other income and other expenses) (JPY million) FYE Mar. 2020 FYE Mar. 2021 1Q 2Q 3Q 4Q 1Q Other financial income 30 60 23 -64 83 Gain on valuation of investments in securities 16 56 22 -74 68 Gain on sales of investments in securities - - - - - Dividends inc
Slide 21: Quarterly financial results by segment (Reclassified) (Japan, the US and Asia-Pacific)
Quarterly financial results by segment (Reclassified) (Japan, the US and Asia- Pacific) Reclassified statement of income (JPY million) FYE Mar. 2020 FYE Mar. 2021 1Q 2Q 3Q 4Q 1Q JPN US AP JPN US AP JPN US AP JPN US AP JPN US AP Brokerage commissions 2,127 2,136 93 2,140 2,132 92 2,730 1,888 89 3,298
Slide 22: Quarterly financial results by segment (Reclassified) (Crypto Asset, Investment)
Quarterly financial results by segment (Reclassified)(Crypto Asset Segment, Investment Segment) Reclassified statement of income (JPY million) FYE Mar. 2020 FYE Mar. 2021 1Q 2Q 3Q 4Q 1Q Crypto Asset Investment Crypto Asset Investment Crypto Asset Investment Crypto Asset Investment Crypto Asset Inves
Slide 23: Quarterly financial results by segment (SG&A) (Japan, the US and Asia-Pacific)
Quarterly financial results by segment (SG&A)(Japan, the US and Asia-Pacific) The details of SG&A in statement of income (JPY million) FYE Mar. 2020 FYE Mar. 2021 1Q 2Q 3Q 4Q 1Q JPN US AP JPN US AP JPN US AP JPN US AP JPN US AP Transaction-related expenses 1,147 1,476 61 1,177 1,466 67 1,269 1,387 6
Slide 24: Quarterly financial results by segment (SG&A) (Crypto Asset, Investment)
Quarterly financial results by segment (SG&A)(Crypto Asset Segment, Investment Segment) The details of SG&A in statement of income (JPY million) FYE Mar. 2020 FYE Mar. 2021 1Q 2Q 3Q 4Q 1Q Crypto Asset Investment Crypto Asset Investment Crypto Asset Investment Crypto Asset Investment Crypto Asset Inv
Slide 25: Quarterly financial results by segment (Other income and other expenses) (Japan, US, AP)
Quarterly financial results by segment (Other income and other expenses) ( Japan, the US and Asia-Pacific) (JPY million) FYE Mar. 2020 FYE Mar. 2021 1Q 2Q 3Q 4Q 1Q JPN US AP JPN US AP JPN US AP JPN US AP JPN US AP Gain on valuation of investments in securities 16 - - 56 - - 22 - - -74 - - 68 - - Gai
Slide 26: Quarterly financial results by segment (Other income and other expenses) (Crypto, Investment)
Quarterly financial results by segment (Other income and other expenses) (Crypto Asset Segment, Investment Segment) (JPY million) FYE Mar. 2020 FYE Mar. 2021 1Q 2Q 3Q 4Q 1Q Crypto Invest Crypto Invest Crypto Invest Crypto Invest Crypto Invest Asset ment Asset ment Asset ment Asset ment Asset ment Ga
Slide 27: US Segment: Quarterly financial results (Reclassified) (in USD)
US Segment :Quarterly financial results (Reclassified) (in USD) Reclassified statement of income (USD thousand) FYE Mar. 2020 FYE Mar. 2021 1Q 2Q 3Q 4Q 1Q Brokerage commissions 19,477 19,745 17,358 24,787 25,588 Stocks and ETFs 4,248 4,212 3,504 5,479 6,899 Options and Futures 15,229 15,533 13,852 1
Slide 28: US Segment: Quarterly financial results (SG&A) (in USD)
US Segment :Quarterly financial results (SG&A) (in USD) The details of SG&A in statement of income (USD thousand) FYE Mar. 2020 FYE Mar. 2021 1Q 2Q 3Q 4Q 1Q Transaction-related expenses 13,458 13,575 12,751 16,353 15,388 Commissions paid 7,444 7,532 6,801 9,392 8,305 Exchange and association dues 29
Slide 29: Financial results by consolidated and segment
Financial results by consolidated and segment (JPY million) FYE Mar. 2019 FYE Mar. 2020 Variance Cons.* JPN US AP Cons. JPN US AP Cons. JPN US AP Commission received 25,741 13,301 12,014 406 25,375 12,614 12,270 454 -366 -687 256 48 Net trading income 6,461 4,535 - -3 8,550 5,030 - 0 2,089 496 - 3 F
Slide 30: Financial results by consolidated and segment
Financial results by consolidated and segment (JPY million) FYE Mar. 2019 FYE Mar. 2020 Variance Crypto Asset Investment Crypto Asset Investment Crypto Asset Investment Commission received 186 - 287 - 101 - Net trading income 1,929 - 3,528 - 1,599 - Financial income - 414 - 148 - -266 Sales - - - -
Slide 31: Financial results by consolidated and segment (Reclassified)
Financial results by consolidated and segment(Reclassified) (JPY million) FYE Mar. 2019 FYE Mar. 2020 Variance Cons. * JPN US AP Cons. JPN US AP Cons. JPN US AP Brokerage commissions 19,463 10,650 8,573 404 19,383 10,294 8,838 451 -80 -356 266 47 Stocks and ETFs 12,610 10,339 2,033 404 12,022 9,926
Slide 32: Financial results by consolidated and segment (Reclassified)
Financial results by consolidated and segment(Reclassified) (JPY million) FYE Mar. 2019 FYE Mar. 2020 Variance Crypto Asset Investment Crypto Asset Investment Crypto Asset Investment Brokerage commissions 3 - 49 - 46 - Stocks and ETFs - - - - - - Options and Futures - - - - - - Cryptocurrency 3 - 49
Slide 33: Financial results by consolidated and segment (SG&A)
Financial results by consolidated and segment(SG&A) (JPY million) FYE Mar. 2019 FYE Mar. 2020 Variance Cons.* JPN US AP Cons. JPN US AP Cons. JPN US AP Transaction-related expenses 12,051 5,135 6,126 268 11,975 5,106 6,098 272 -76 -28 -28 4 Commissions paid 4,609 1,414 3,129 43 4,780 1,454 3,386 55
Slide 34: Financial results by consolidated and segment (SG&A)
Financial results by consolidated and segment(SG&A) (JPY million) FYE Mar. 2019 FYE Mar. 2020 Variance Crypto Asset Investment Crypto Asset Investment Crypto Asset Investment Transaction-related expenses 709 5 781 10 72 5 Commissions paid 213 2 166 2 -47 1 Exchange and association dues - - - - - - C
Slide 35: Consolidated statement of financial position (1) Assets
Consolidated statement of financial position (1) ■Assets (JPY million) As of As of As of As of Mar. 31, 2020 Jun. 30, 2020 Mar. 31, 2020 Jun. 30, 2020 Cash and cash equivalents 132,561 125,699 Property and equipment 4,921 4,701 Cash segregated as deposits 620,222 672,245 Intangible assets 46,006 45,
Slide 36: Consolidated statement of financial position (2) Liabilities, Equity
Consolidated statement of financial position (2) ■Liabilities ■Equity (JPY million) As of As of As of As of Mar. 31, 2020 Jun. 30, 2020 Mar. 31, 2020 Jun. 30, 2020 Trading securities and other 16 - Common stock 10,394 10,394 Derivative liabilities 3,256 3,469 Additional-paid in capital 40,291 40,262
Slide 37: Consolidated statement of financial position (3) Investments in securities
Consolidated statement of financial position (3) ■Investments in securities (JPY million) As of As of Measurement method Description Mar. 31, 2020 Jun. 30, 2020 Investments in securities 5,447 7,841 Fair Value Through Profit or Loss (FVTPL) Quoted prices (unadjusted) in active markets for identical