Monex Group, Inc. · TSE:8698

Monex — Q1 FYE March 2015 Earnings Presentation

27 slides from Monex's earnings presentation, Jul 31, 2014

  1. Slide 1: Data Book of Financial Results for 1Q of Fiscal Year Ending March 31, 2015

    July 31, 2014 (TSE 1st Section: 8698) Data Book of Financial Results for 1Q of Fiscal Year Ending March 31, 2015 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 f

  2. 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.26 1

  3. Slide 3: 1. Market & Transaction Data

    1. Market & Transaction Data 2. Financial Data 2

  4. Slide 4: Customers' Assets in Custody

    Market and Transaction Data (1) – Customers’ Assets in Custody (mil yen) Japan Segment U.S. Segment China Segment 4,000,000 3,500,000 3,000,000 2,500,000 2,000,000 1,500,000 1,000,000 500,000 0 As of As of As of As of As of As of As of As of As of Jun.30, 2012 Sep.30, 2012 Dec.31, 2012 Mar.31, 2013

  5. Slide 5: Number of Employees

    Market and Transaction Data (2) – Number of Employees (person） Japan Segment U.S. Segment China 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, 2012 Sep.30, 2012 Dec.31, 2012 Mar.31, 2013 Jun.30, 2013 Sep.30, 2013 Dec.31, 2013 Mar.31, 2014 Jun.30, 2014 (person） FYE

  6. Slide 6: Japan Segment - Monex, Inc. (Brokerage account, etc.)

    Market and Transaction Data (3) – Japan Segment - Monex, Inc. (Brokerage account,etc.) ◆Number of total accounts & active accounts (account） Brokerage accounts Active accounts 1,400,000 1,200,000 1,000,000 800,000 600,000 400,000 200,000 0 As of Jun. 30, 2012 As of Sep. 30, 2012 As of Dec. 31, 2012

  7. Slide 7: Japan Segment - Monex, Inc. (Equities)

    Market and Transaction Data (4) Japan Segment - Monex, Inc. (Equities) ◆Market share and value of equity trading ◆ Breakdown of DARTs and market trading value Monex’s share in retail trading value in 2 major stock exchanges and Futures and OptionsDARTs (per businessday）(left) （thousand） （100 mil yen

  8. Slide 8: Japan Segment - Monex, Inc. (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) (mil yen ) Sales of Investment Trusts(no-load) (left) (mil yen ) (mil yen ) 70,000 Sales of Investment Trusts(load) (left) 400,0

  9. Slide 9: Japan Segment - Monex, Inc. (Customer distribution)

    Market and Transaction Data (6) Japan Segment – Monex, Inc. (Customer distribution) ◆Active accounts by gender and age ◆Active accounts by occupation Professional Corporation (e.g. Doctor) All accounts Accounts opened within a year 35% 35% Homemaker Civil servant executive Self-employed Corporate 30

  10. Slide 10: Japan Segment - Monex, Inc. (Capital Adequacy Ratio)

    Market and Transaction Data (7) Japan Segment - Monex, Inc. (Capital Adequacy Ratio) ◆Capital adequacy ratio (mil yen) 60,000 600% Risk asset amount（left） Non-fixed capital （left） Capital adequacy ratio（right） 50,000 500% 40,000 400% 30,000 300% 20,000 200% 10,000 100% 0 0% As of As of As of As of A

  11. Slide 11: U.S. Segment - TradeStation

    Market and Transaction Data (8) U.S. Segment – TradeStation ◆ DARTs and VIX(*) （thousand） Futures DARTs(left) Options DARTs(left) Equities DARTs(left) 140 Vix Avg. High(right) Vix Avg. Low(right) 25 120 20 100 80 15 60 10 40 5 20 0 0 1Q of FYE 2Q of FYE 3Q of FYE 4Q of FYE 1Q of FYE 2Q of FYE 3Q of

  12. Slide 12: China Segment - Monex BOOM Securities

    Market and Transaction Data (9) China Segment - Monex BOOM Securities ◆ Numbers of active accounts ◆ DARTs (account) 1,600 10,000 1,400 8,000 1,200 1,000 6,000 800 4,000 600 400 2,000 200 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 Mar. As of Jun. 1Q of FYE

  13. Slide 13: Global FX

    Market and Transaction Data (10) Global FX ◆OTC FX business in Japan (Monex, Inc. and Monex FX, Inc.) ◆OTC FX business in U.S. (TradeStation) （mil yen） （100mil yen） (thousand USD） （100mil USD） Commissions(left) Tradeing revenue(left) 10,000 1,000 2,000 Trading value (right) 150,000 Trading revenue(l

  14. Slide 14: 2. Financial Data

    1. Market & Transaction Data 2. Financial Data 13

  15. Slide 15: Significant impact of difference between IFRSs and JGAAP

    Significant impact of difference between IFRSs and JGAAP We have adopted IFRSs since FYE March 2013 to improve the international comparability of financial information, while we engage in business activities with a focus of 3 major locations (Japan, the U.S. and China) with a view to creating a glob

  16. Slide 16: Quarterly consolidated financial results

    Quarterly consolidated financial results (million yen) FYE March FYE March 2013 FYE March 2014 2015 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q Commission received 3,898 4,530 7,761 10,763 7,518 7,937 7,324 6,314 Net trading income 1,290 1,547 2,486 2,821 1,832 1,723 1,634 1,244 Financial revenue 1,556 2,005 2,492 3,12

  17. Slide 17: Quarterly consolidated financial results (Reclassified)

    Quarterly consolidated financial results (Reclassified) Reclassified consolidated statement of income (million yen) FYE Mar. FYE Mar. 2013 FYE Mar. 2014 2015 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q Brokerage commissions 2,794 3,485 6,288 9,174 6,123 6,463 5,812 4,906 Stocks and ETFs 1,857 2,440 5,028 7,533 4,848 5,

  18. Slide 18: Quarterly consolidated financial results (SG&A)

    Quarterly consolidated financial results (SG&A) The details of SG&A in consolidated statement of income (million yen) FYE March FYE March 2013 FYE March 2014 2015 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q Transaction-related expenses 2,364 2,409 2,846 3,320 2,939 2,953 3,023 3,006 Commissions paid 867 948 1,045 1,332

  19. Slide 19: Quarterly consolidated financial results (Other revenue and other expenses)

    Quarterly consolidated financial results (Other revenue and other expenses) (million yen) FYE Mar. FYE March 2013 FYE March 2014 2015 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q Other financial revenue 175 18 4,605 2,296 4 116 -111 20 Gain on sales of investment securities 160 16 4,604 2,288 - - - - Dividends income -

  20. Slide 20: Quarterly financial results by segment

    Quarterly financial results by segment (million yen) FYE March 2013 FYE March 2014 FYE March 2015 4Q 1Q 2Q 3Q 4Q 1Q JPN U.S. CHN JPN U.S. CHN JPN U.S. CHN JPN U.S. CHN JPN U.S. CHN JPN U.S. CHN Commission received 5,699 1,988 85 8,323 2,360 94 5,284 2,165 80 5,574 2,288 95 4,759 2,485 99 3,922 2,337

  21. Slide 21: Quarterly financial results by segment (Reclassified)

    Quarterly financial results by segment (Reclassified) Reclassified consolidated statement of income (million yen) FYE March 2013 FYE March 2014 FYE March 2015 4Q 1Q 2Q 3Q 4Q 1Q JPN U.S. CHN JPN U.S. CHN JPN U.S. CHN JPN U.S. CHN JPN U.S. CHN JPN U.S. CHN Brokerage commissions 4,767 1,447 85 7,340 1,

  22. Slide 22: Quarterly financial results by segment (SG&A)

    Quarterly financial results by segment (SG&A) The details of SG&A in consolidated statement of income (million yen) FYE March 2013 FYE March 2014 FYE March 2015 4Q 1Q 2Q 3Q 4Q 1Q JPN U.S. CHN JPN U.S. CHN JPN U.S. CHN JPN U.S. CHN JPN U.S. CHN JPN U.S. CHN Transaction-related 1,427 1,397 32 1,739 1,

  23. Slide 23: U.S. Segment: Quarterly financial results (in USD)

    U.S. Segment :Quarterly financial results (in USD) Reclassified consolidated statement of income (thousand USD) FYE March FYE March 2013 FYE March 2014 2015 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q Brokerage commissions 14,468 15,110 15,846 17,923 15,972 16,051 17,338 15,954 Stocks and ETFs 4,587 4,501 5,011 5,102 4

  24. Slide 24: U.S. Segment: Quarterly financial results (SG&A) (in USD)

    U.S. Segment :Quarterly financial results (SG&A) (in USD) The details of SG&A in consolidated statement of income (thousand USD) FYE March FYE March 2013 FYE March 2014 2015 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q Transaction-related expenses 15,905 15,064 15,172 15,910 14,868 14,164 15,051 14,970 Commissions paid

  25. Slide 25: Consolidated statement of financial position (1)

    Consolidated statement of financial position (1) ■Assets (million yen) As of As of As of As of March 31, 2014 June 30, 2014 March 31, 2014 June 30, 2014 Cash and cash equivalents 85,442 84,600 Property and equipment 1,579 2,228 Cash segregated as deposits 426,719 444,129 Intangible assets 41,558 42,

  26. Slide 26: Consolidated statement of financial position (2)

    Consolidated statement of financial position (2) (million yen) ■Liabilities ■Equity As of As of As of As of March 31, 2014 June 30, 2014 March 31, 2014 June 30, 2014 Derivative liabilities 9,047 8,016 Common stock 10,394 10,394 Margin transaction liabilities 36,308 35,733 Additional-paid in capital

  27. Slide 27: Consolidated statement of financial position (3)

    Consolidated statement of financial position (3) ■Investments in securities (million yen) As of As of measurement method Description March 31, 2014 June 30, 2014 Investments in securities 8,390 8,521 Fair Value Through Profit or Loss Quoted prices (unadjusted) in active markets for (Level 1) 579 477

Monex Group — Q1 FYE March 2015 Earnings Presentation on 6ix