Monex Group, Inc. · TSE:8698
Monex — FY2020 Earnings Presentation
38 slides from Monex's earnings presentation, May 7, 2020
Slide 1: Databook: Financial Results for Fiscal Year Ended March 31, 2020
May 7, 2020 (TSE 1st Section: 8698) DATABOOK Financial Results for Fiscal Year Ended March 31, 2020 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 conso
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.37 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 Mar.31, 2018 Jun.30, 2018 Sep.30, 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 Mar.31, 2018 Jun.30, 2018 Sep.30, 2018 Dec.31, 2018 Mar.31, 2019 Jun.30, 2019 Sep.30, 2019 Dec.31, 201
Slide 6: Market and Transaction Data (3) – Japan Segment - 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 Mar. 31, As of Jun. 30, As of Sep. 30, As of Dec. 31, As of Mar. 31, As of Jun. 30, As
Slide 7: Market and Transaction Data (4) – 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) – 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) – FX
Market and Transaction Data (6) Japan Segment - Monex, Inc. (FX) ◆OTC FX business (JPY million) (JPY 100million) 1,500 300,000 FX revenue (left) Trading value (right) 250,000 1,000 200,000 150,000 500 100,000 50,000 0 0 4Q of FYE 1Q of FYE 2Q of FYE 3Q of FYE 4Q of FYE 1Q of FYE 2Q of FYE 3Q of FYE
Slide 10: Market and Transaction Data (7) – 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 (e.g. Doctor) 30% All accounts 35% Accounts opened within a year executive 30% Homemaker Civil servant Self-employe
Slide 11: Market and Transaction Data (8) – 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 ◆ DARTs and VIX(*1) （thousand） (account) 150 40 120,000 Futures DARTs(left) Options DARTs(left) Equities DARTs(left) Vix Close Avg. (right) 100,000 30 100 80,000 20 60,000 40,000 50 10 20,000 0 0 0 As of M
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 3,000 12,000 9,000 2,000 6,000 1,000 3,000 0 4Q of FYE 1Q of FYE 2Q of FYE 3Q of FYE 4Q of FYE 1Q of FYE 2Q of FYE 3Q of FYE 4Q of
Slide 14: 2. Financial Data
1. Market & Transaction Data 2. Financial Data 13
Slide 15: Introduction: IFRS Adoption
Introduction We have adopted IFRSs since FYE March 2013 to improve the international comparability of financial information, while we engage in business activities with a view to creating a global online financial group ■ Consolidated financial statements for FYE March 2020 Differences between IFRSs
Slide 16: Consolidated Financial Results
Consolidated financial results (JPY million) FYE Mar. 2019 FYE Mar. 2020 Variance Change Commission received 25,741 25,375 -366 -1.4% Net trading income 6,461 8,550 2,089 32.3% Financial income 19,242 18,579 -663 -3.4% Other operating income 731 722 -9 -1.2% Total operating revenue 52,175 53,226 1,0
Slide 17: Consolidated Financial Results (Reclassified)
Consolidated financial results (Reclassified) Reclassified consolidated statement of income (JPY million) FYE Mar. 2019 FYE Mar.2020 Variance Change Brokerage commissions 19,463 19,383 -80 -0.4% Stocks and ETFs 12,610 12,022 -587 -4.7% Options and Futures 6,851 7,309 459 6.7% Cryptocurrency 3 52 48
Slide 18: Consolidated Financial Results (SG&A)
Consolidated financial results (SG&A) The details of SG&A in consolidated statement of income (JPY million) FYE Mar. 2019 FYE Mar.2020 Variance Change Transaction-related expenses 12,051 11,975 -76 -0.6% Commissions paid 4,609 4,780 172 3.7% Exchange and association dues 765 779 14 1.9% Communicatio
Slide 19: Quarterly Consolidated Financial Results (Reclassified)
Quarterly consolidated financial results (Reclassified) Reclassified consolidated statement of income (JPY million) FYE Mar. 2019 FYE Mar. 2020 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Brokerage commissions 5,134 4,720 5,332 4,278 4,341 4,328 4,663 6,052 Stocks and ETFs 3,364 3,130 3,399 2,716 2,575 2,566 3,084 3,79
Slide 20: 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. 2019 FYE Mar. 2020 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Transaction-related expenses 3,157 2,810 3,000 3,085 2,881 2,834 2,831 3,429 Commissions paid 1,255 1,054 1,244 1,055 1,160 1,151
Slide 21: Quarterly Consolidated Financial Results (Other Income and Expenses)
Quarterly consolidated financial results (Other income and other expenses) (JPY million) FYE Mar. 2019 FYE Mar. 2020 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Other financial income 140 187 284 541 30 60 23 -64 Gain on valuation of investments in securities 34 21 -31 13 16 56 22 -74 Gain on sales of investments in se
Slide 22: Quarterly Results by Segment (Japan, US, Asia-Pacific)
Quarterly financial results by segment (Reclassified) (Japan, the US and Asia-Pacific) Reclassified statement of income (JPY million) FYE Mar. 2019 FYE Mar. 2020 3Q 4Q 1Q 2Q 3Q 4Q JPN US AP JPN US AP JPN US AP JPN US AP JPN US AP JPN US AP Brokerage commissions 2,928 2,362 90 2,212 1,998 105 2,127 2
Slide 23: Quarterly Results by Segment (Crypto Asset, Investment)
Quarterly financial results by segment (Reclassified) (Crypto Asset Segment, Investment Segment) Reclassified statement of income (JPY million) FYE Mar. 2019 FYE Mar. 2020 3Q 4Q 1Q 2Q 3Q 4Q Crypto Crypto Crypto Crypto Crypto Crypto Investment Investment Investment Investment Investment Investment As
Slide 24: Quarterly Results by Segment SG&A (Japan, US, 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. 2019 FYE Mar. 2019 3Q 4Q 1Q 2Q 3Q 4Q JPN US AP JPN US AP JPN US AP JPN US AP JPN US AP JPN US AP Transaction-related expenses 1,292 1,530 63 1,280 1,526 76
Slide 25: Quarterly 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. 2019 FYE Mar. 2020 3Q 4Q 1Q 2Q 3Q 4Q Crypto Crypto Crypto Crypto Crypto Crypto Investment Investment Investment Investment Investment Investment
Slide 26: Quarterly Segment Results: Other Income and Expenses (Japan, US, AP)
Quarterly financial results by segment (Other income and other expenses) ( Japan, the US and Asia-Pacific) (JPY million) FYE Mar. 2019 FYE Mar. 2019 3Q 4Q 1Q 2Q 3Q 4Q JPN US AP JPN US AP JPN US AP JPN US AP JPN US AP JPN US AP Gain on valuation of -31 - - 13 - - 16 - - 56 - - 22 - - -74 - - investme
Slide 27: Quarterly Segment Results: Other Income and Expenses (Crypto, Investment)
Quarterly financial results by segment (Other income and other expenses) (Crypto Asset Segment, Investment Segment) (JPY million) FYE Mar. 2019 FYE Mar. 2020 3Q 4Q 1Q 2Q 3Q 4Q Crypto Invest Crypto Invest Crypto Invest Crypto Invest Crypto Invest Crypto Invest Asset ment Asset ment Asset ment Asset m
Slide 28: US Segment: Quarterly Financial Results (in USD)
US Segment :Quarterly financial results (Reclassified) (in USD) Reclassified statement of income (USD thousand) FYE Mar. 2019 FYE Mar. 2020 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Brokerage commissions 20,377 17,834 21,099 18,100 19,477 19,745 17,358 24,787 Stocks and ETFs 4,731 4,258 4,813 4,556 4,248 4,212 3,504
Slide 29: 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. 2019 FYE Mar. 2020 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Transaction-related expenses 14,849 12,997 13,649 13,822 13,458 13,575 12,751 16,353 Commissions paid 7,929 6,236 7,787 6,301 7,444 7,
Slide 30: 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
Slide 31: 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 32: 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 33: 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 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 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 35: 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 36: 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, 2019 Mar. 31, 2020 Mar. 31, 2019 Mar. 31, 2020 Cash and cash equivalents 154,146 132,561 Property and equipment 2,456 4,921 Cash segregated as deposits 566,220 620,222 Intangible assets 47,698 46,
Slide 37: Consolidated Statement of Financial Position (2) Liabilities and Equity
Consolidated statement of financial position (2) ■Liabilities ■Equity (JPY million) As of As of As of As of Mar. 31, 2019 Mar. 31, 2020 Mar. 31, 2019 Mar. 31, 2020 Trading securities and other － 16 Common stock 10,394 10,394 Derivative liabilities 4,311 3,256 Additional-paid in capital 40,510 40,291
Slide 38: 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, 2019 Mar. 31, 2020 Investments in securities 3,914 5,447 Fair Value Through Profit or Loss (FVTPL) Quoted prices (unadjusted) in active markets for identical