Monex Group, Inc. · TSE:8698
Monex — Monex Beans Holdings — H1 FYE March 2005 Earnings Presentation
25 slides from Monex's earnings presentation, Oct 21, 2004
Slide 1: Financial Results: First Half of Fiscal Year Ending March 31, 2005
Financial Results First Half of Fiscal Year Ending March 31, 2005 October 21, 2004 This is an English translation of Japanese presentation material prepared for IR conference held on the above date; it includes the information on non- consolidated financial summary under Japanese GAAP for the first
Slide 2: 1. Financial Results and Business Overview; 2. Business Model and Future Development
1. Financial Results and Business Overview 2. Business Model and Future Development 2
Slide 3: Financial Summary: First Half FYE Mar. 2004 vs. First Half FYE Mar. 2005
Financial Summary : First Half of FYE Mar. 31, 2004 vs. First Half of FYE Mar. 31, 2005 First Half of FYE Mar. 2004 First Half of FYE Mar. 2005 Change (in million yen, %) (Apr. 2003-Sep. 2003 (Apr. 2004-Sep. 2004) Operating Revenues 6,130 10,295 67.9% Net Operating Revenues 5,832 9,752 67.2% Selling
Slide 4: Financial Summary: Second Half FYE Mar. 2004 vs. First Half FYE Mar. 2005
Financial Summary : Second Half of FYE Mar. 31, 2004 vs. First Half of FYE Mar. 31, 2005 Second Half of FYE Mar. 2004 First Half of FYE Mar. 2005 Change (in million yen, %) (Oct. 2003-Mar. 2004) (Apr. 2004-Sep. 2004) Operating Revenues 8,945 10,295 15.1% Net Operating Revenues 8,605 9,752 13.3% Sell
Slide 5: Financial Summary: 1Q vs. 2Q of FYE Mar. 2005
Financial Summary : 1Q of FYE Mar. 31, 2005 vs. 2Q of FYE Mar. 31, 2005 1Q of FYE Mar. 2005 2Q of FYE Mar. 2005 Change (in million yen, %) (Apr. 2004-Jun. 2004) (Jul. 2004-Sep. 2004) Operating Revenues 5,764 4,530 -21.4% Net Operating Revenues 5,440 4,312 -20.7% Selling, general and 2,806 2,892 3.1%
Slide 6: Financial Summary: Financial Highlights (Quarterly Basis)
Financial Summary : Financial Highlights (Quarterly Basis Net Operating Revenues Selling, General and Administrative Expenses (in million yen) (in million yen) 6,000 5,440 6,000 4,907 5,000 4,312 5,000 4,000 3,644 3,698 4,000 2,892 3,000 3,000 2,703 2,806 2,187 2,278 1,867 2,109 2,000 2,000 1,000 1,
Slide 7: Net Operating Revenues vs. Selling, General and Administrative Expenses
Net Operating Revenues vs. Selling, General and Administrative Expenses (in million yen) 5,440 4,907 4,312 3,644 3,698 2,187 2,703 2,806 2,892 1,867 2,109 2,278 FYE Mar. 31, 2004 FYE Mar. 31, 2005 1Q 2Q 3Q 4Q 1Q 2Q Net Operating Revenues Selling, General and Administrative Expenses Breakdown of 2Q o
Slide 8: Comparison with Others: Number of Accounts vs. Customers' Assets in Custody
Comparison with Others : Number of Accounts vs. Customers’ Assets in Custody The following indicates “Customers’ assets in custody per account” as of Dec. 31, 2003 , Mar. 31, 2004 and Jun. 30, 2004. Customers’ assets in custody (in 100 million yen) Source : Company Data on website 16,000 Jun. 30, 20
Slide 9: Comparison with Others: Retail Trading Value
Comparison with Others : Retail Trading Value Market share of trading value; vs. Matsui, E*trade, Rakuten & Kabu.com 1Q of FYE Mar. 31, 2005 21 Market Share of Trading Value E*trade 18 Matsui Others E*trade Trading Value Share 15 39 20 12 Matsui Trading Trading Value Value 9 15 Rakuten MBH 6 Kabu.co
Slide 10: Margin Trading
Margin Trading (*) This is an Provide well-designed unique service services for all customers provided by by combining Nikko Beans “Net Margin Trading” limited online sophisticated trading brokers Various Services including Nikko services of Nikko Beans Beans and educational Two-type margin trading:
Slide 11: Underwriting Business
Underwriting Business Underwriting and Distribution Amounts and Participation Underwriting Deals in 2Q of FYE Mar. 31, 2005 (Monex only Ratio (Monex and Nikko Beans) IPO Tota0l IPO Share Monex IPO Company Name Market amount date ( in million yen) ( in million yen ) TAZMO CO.,LTD JASDAQ Jul. 15 3,330
Slide 12: Mutual Funds (Largest online mutual fund distributor)
Mutual Funds (Largest online mutual fund distributor) The only Sales amounts at Monex (from Sep. 27 to Oct. 1) distributor of Monthly purchase mechanizm 1 “Nikkei 225 No-load Open” 2 “HSBC China Open” Vanguard funds 3 “Vanguard Total Stock Market Index Fund” in Japan 4 “Bull Bear Select Double Bull
Slide 13: Forex Trades
Forex Trades Largest number of retail margin accounts 7 Currencies and 8 Pairs Trading (15,062 accounts as of Sep. 30, 2004) USD vs. JPY, EUR vs. JPY, EUR vs. USD, AUD vs. JPY, GBP vs. JPY, CHF vs. JPY, -Matching customers’ CAD vs. JPY, NZD vs. JPY preferences -Largest margin outstanding among finan
Slide 14: Core Products Lines
Core Products Lines The Themerger mergerofofMonex Monexand andNikko NikkoBeans Beanscontributes contributestotoimprove improvethe theline-up line-upofofproducts productsand andservices, services, and brings all kinds of products and services to every customer (from beginners to highly active custome
Slide 15: Investment Methods Education
Investment Methods Education Mission of MBH –to prevail investment education among people in financial turning point. This will lead to the development of MBH, particularly of new business. •Increased anxiety resulting from the amendment of public and corporate pension scheme Direct Finance Indirect
Slide 16: 1. Financial Results and Business Overview; 2. Business Model and Future Development
1. Financial Results and Business Overview 2. Business Model and Future Development 16
Slide 17: Mission Statement: "MONEY" to "MONEX"
Mission Statement “MONEY” to “MONEX” Take position as total financial service provider, not just as online brokerage firm Be ready for environmental changes such as the revision of Article 65 of Securities and Exchange Law (Japanese “Glass-Steagall Act”) and reorganization of financial industr
Slide 18: Comparison with Competitors: Revenues per Asset
Comparison with Competitors Total revenues & SGA per asset -retail business only- (as of Mar. 31, 2004) 3.00% -MBH will take the direction of (B), not (C) -MBH will effectively and efficiently capture individual assets which will create 2.50% 1-1.5% revenue. Matsui -MBH can reach up to (A) through t
Slide 19: Differentiate Business Models against Competitors
Differentiate Business Models against Competitors (Our Interpretation) Matsui = Stock Rakuten = eCommerce vs. SBI&MBH = All Round Financial Services Money (broad financial services) Portal site Stock brokerage Stock Travel tickets Entertainment tickets SBI&MBH Matsui Shopping mall SBF has multi-clie
Slide 20: Business Partners
Business Partners Business partners –who take advantage of financial environmental changes such as the abolishment of Article 65 of Securities and Exchange Law. Business Cooperation with Credit Saison Business Cooperation with Mizuho Securities IPO stocks’ participation to Mizuho Sec. Securities int
Slide 21: Progress on Business Integration
Progress on Business Integration Apr. 2004-Sep. 2004 Oct. 2004-Apr. 2005 May 2005 Jul. 2004 Nikko Beans(B) moved to the same floor with Monex(M) Starting up of Monex Beans Securities Aug. 2004 MBH founded and started its business Infrastructure Setting up of integrated Call Center Sep. 2004 M’s Call
Slide 22: Monex Beans Securities (MBS) in FYE Mar. 31, 2006
Monex Beans Securities (MBS) in FYE Mar. 31, 2006 MBS Core Products and Services Customer Base Integrated New System -Line-up based on “Customer First Philosophy”- Stop loss order, Band limit Realize abundance and stability of system 500,000 customer accounts For advanced order and “Surfing Trading”
Slide 23: Current and Future Business Models
Current and Future Business Models Ratio of Current Revenues Future 100% Components Business Potential Increase in number of accounts Expansion of customer base through providing lifetime 33% Brokerage (Cash) investment education 80% Continuous launch of new services 52% Light focus on this business
Slide 24: Launch of Alternative Investments Funds Business
Launch of Alternative Investments Funds Business “Monex Alternative Investments, Inc. (MAI) ”, Joint Venture with Asuka Asset Management, Ltd. Business Distinctive Products Implementation Mission Core Competence Line-up Process Fund Establishment of fund FundofofFunds Funds planning and Introduce In
Slide 25: Monex Beans Holdings, Inc.
Monex Beans Holdings. Inc. MBH Monex Beans Holdings, Inc.
Monex Beans Holdings — H1 FYE March 2005 Earnings Presentation on 6ix