Slide 1: Financial Results of 3Q of Fiscal Year Ending March 31, 2012
January 31, 2012 Financial Results of 3Q of Fiscal Year Ending 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 stat
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 ◆Accelerated Global FX Business Expansion Acquired IBFX in November, equipped with 1) in-house developed FX system, 2) multinational customer base and trading value, 3) new business base and staff in U.S. and Australia, which enables us to accelerate global exp
Slide 9: Financial Summary: 2Q vs 3Q of FYE Mar. 2012 (3 months)
Financial Summary : 2Q of FYE Mar. 31, 2012 vs. 3Q of FYE Mar. 31, 2012 (in 3 months) （in million yen, %） 2Q of FYE Mar. 31, 2012 3Q of FYE Mar. 31, 2012 Change (Jul. 2011– Sep. 2011） (Oct. 2011– Dec. 2011） Operating Revenues 8,640 8,690 0.6% Net Operating Revenues 8,028 7,600 -5.3% SG&A 7,036 7,396
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 2Q of FYE Mar. 31, 2012 ■SG&A：Comparison with 2Q of FYE Mar. 31, 2012 ◆Brokerage commission decreased due to the sluggish ◆ Cost increased due to the consolidation of IBFX market condition both in Japan and
Slide 11: Financial Summary: 3Q FYE 2011 vs 3Q FYE 2012 (9 months)
Financial Summary : 3Q of FYE Mar. 31, 2011 vs. 3Q of FYE Mar. 31, 2012 (in 9 months) （in million yen, %） 3Q of FYE Mar. 31, 2011 3Q of FYE Mar. 31, 2012 Change (Apr. 2010 – Dec. 2010） (Apr. 2011 – Dec. 2011） Operating Revenues 18,502 23,387 26.4% Net Operating Revenues 16,228 20,709 27.6% SG&A 13,3
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 3Q(Apr.-Dec.) of FYE Mar. 31, 2011 ■ SG&A：Comparison with 3Q(Apr.-Dec.) of FYE Mar. 31, 2011 ◆ Affected by the decrease in equity trading values ◆ System related costs decreased due to the cost reduction s
Slide 13: Balance Sheet
Balance Sheet ■Maintain financial strength by keeping availability of funds and liquidity and controlling risk assets (*4) Non-current assets（investment value of risk assets） (in billion yen) [Segregated cash trust] [Cash margin from customers Property/equipment 1.4 (Facilities, equipment, etc) (min
Slide 14: Capital Availability and Goodwill
Capital Availability and Goodwill ■ Keeping sufficient equity, liquidity and financing capability Balance Sheet as of end of Dec. 2011 Goodwill/Intangible Asset and capital availability ◆Outline of the acquisition of TradeStation Group (before amortization) Current Asset Current ・Acquisition cost: J
Slide 15: Distribution of Consolidated Net Operating Revenues by Regions and Businesses
Distribution of Consolidated Net Operating Revenues by Regions and Businesses ■ 3Q FYE Mar. 31, 2012 (3 months) *IBFX was consolidated since its acquisition as of Nov. 15, 2011 (1.5 months) Financial Income Others FX business strengthened by acquiring IBFX FX 3% 3% 5% Equity 21 % Futures and Options
Slide 16: Distribution of Consolidated SG&A by Regions and Contents
Distribution of Consolidated SG&A by Regions and Contents ■3Q FYE Mar. 31, 2012 (3 months) *IBFX was consolidated since its acquisition as of Nov. 15, 2011 (1.5 months) Most of the system Others development is outsourced in 5％ Japan and the amount of the Commissions paid systems related costs is lar
Slide 17: Distribution of Consolidated Personnel by Regions and Jobs
Distribution of Consolidated Personnel by Regions and Jobs ■As of the end of December 2011 （Total number of employees: 825) System development is mostly outsourced in Japan and the number of Technology technology related employees is small. 4％ IBFX Marketing 12 ％ 14 ％ 4％ Others China Japan 9％ (inc.H
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: Measures for Revenue Improvement
Measures for Revenue Improvement ■Integration Progress and Roadmap ◆Progress on Business Integration (2Q) 1.Linked bonuses to Monex Group’s stock prices for board members and some employees 2.Global Management Committee (GMC) held weekly to manages progress based on the Road Map 3.Started personnel
Slide 22: Global FX: About Acquisition of IBFX
Global FX：About Acquisition of IBFX ■Accelerating Global Expansion by Acquiring IBFX ◆ Company Overview Variety of Clients • Founded in 2003 as an FX broker, IBFX grew rapidly to • Developed a strong network of global customers become one of the most active FX companies in the U.S. － Customers from
Slide 23: Global FX: Strategy
Global FX：Strategy ■Concept of Constructing and Expanding Global FX Business Monex, Inc./Monex FX TradeStation Forex （IBFX Div.） （Ex-TradeStation Forex） customer customer customer customer trade trade trade trade Unifying user interface User interface MT4 TradeStation External External (Trading plat
Slide 24: Global FX: Local Activities
Global FX: Local Activities ■Japan (Monex, Inc. and Monex FX) ■U.S. and Australia (TradeStation Forex and IBFX) ◆Trading volume grew in spite of the leverage regulatory ◆Steadily growing since FX business initiation in April 2011 Revenue (thousand dollar) Trading volume (billion dollar) Revenue (mil
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 ◆ Fund management for a new commodity fund started 1Ｑ 2Ｑ 3Ｑ 4Ｑ 1Ｑ 2Ｑ 3Ｑ ・ Pr
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.-Dec. 2011 400 ◆ Company Overview 350 • Formed in 1982 as a trading platform provider. Initial Public 300 Offering in 1997 (listed on the NASDAQ GS). Grown
Slide 28: U.S.: About TradeStation and US Business Strategies
U.S.: About TradeStation and US Business Strategies ■Characteristics of TradeStation ■US business strategies ◆ TradeStation® (trading platform) ◆ New accounts growing rapidly TradeStation® is an award winning direct-access trading New account trends responding to increased spending and platform whic
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: 3Q of FYE March 2012 (DARTs of Oct. – Dec. 2011) DARTs=Daily Average Revenue Trades (Equity, Options and Futures, FX and Mutual Funds) Japan U.S. China (Hong Kong) Total: Global DARTs 135,977 (excluding IBFX) D A R T s 137,982
Slide 32: Breakdown of Net Operating Revenues by Business
Breakdown of Net Operating Revenues by Business ■3Q of FYE Mar. 31, 2012 （9 months： Apr. to Dec. 2011） （in million yen） Business category Recurring revenue Variable revenue Total % Japan(Cash) 2,836 Japan 3,188 (Margin) 2,439 Equities U.S. 1,002 10,821 52% U.S. 1,075 Hong Kong 54 Hong Kong 223 Japan
Slide 33: Financial Results: Quarterly Breakdown of Consolidated Income Statement
Financial Results：Quarterly Breakdown of Consolidated Income Statement （in million yen） FYE Mar. 31, 2010 FYE Mar. 31, 2011 FYE Mar. 31, 2012 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q Brokerage commissions( includes OSE-FX) 3,145 2,670 2,073 2,604 2,772 1,904 2,089 3,336 2,120 3,941 3,387 Stocks and ETFs 3,0
Slide 34: Financial Results: Quarterly Breakdown of Consolidated SG&A
Financial Results：Quarterly Breakdown of Consolidated SG&A （in million yen） FYE Mar. 31, 2010 FYE Mar. 31, 2011 FYE Mar. 31, 2012 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q Transaction-related expenses 979 1,044 948 1,247 1,267 1,118 1,260 1,360 1,224 2,439 2,521 Commissions paid 196 263 181 194 246 217 220 2
Slide 35: Financial Results: Overseas Subsidiaries
Financial Results：Overseas Subsidiaries (Income Statement) (SG&A) （in million yen） 2Q of FYE Mar. 2012 3Q of FYE Mar. 2012 2Q of FYE Mar. 3Q of FYE Mar. Hong Hong 2012 2012 U.S. U.S. Hong Hong Kong Kong U.S. U.S. Kong Kong Brokerage commissions 1,710 80 1,464 57 Transaction-related expenses 1,222 30
Slide 36: 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 end of Sep. 2011: company aim to provide return to its sha
Slide 37: The Monex Group
The Monex Group Holding Company （As of January 31, 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 i