Monex Group, Inc. · TSE:8698
Monex — Monex Beans Holdings — Q3 FY2006 Earnings Presentation
31 slides from Monex's earnings presentation, Jan 20, 2006
Slide 1: Financial Results 3Q of Fiscal Year Ending March 31, 2006
Financial Results 3Q of Fiscal Year Ending March 31, 2006 January 20, 2006 This is an English translation of Japanese presentation material prepared for IR conference held on the above date; it includes the information on consolidated financial summary under Japanese GAAP for FYE March 2006. If ther
Slide 2: Table of Contents
Table of Contents 1. Financial Results 2. Business Model and Future Development Summary 3 Mission Statement 13 Competition Analysis Five Management Measures 14 Financial Summary Competition Analysis Concrete Policies 15 3Q of FYE Mar. 31, 2005 Current and Future Business Models 16 vs. 3Q of FYE Mar.
Slide 3: 1. Financial Results
1. Financial Results 2. Business Model and Future Development 2
Slide 4: Summary
Summary 1. Quarterly Operating Revenues, Ordinary Income and Net Income are All Historical High 9 Operating Revenues 12,031 million yen 146.2 UP* 9 Ordinary Income 8,328 million yen 344.0 UP* 9 Net Income 4,717 million yen 364.9 UP* *Percentage changes : year-on-year 2. Brisk Market and Strict Cost
Slide 5: Financial Summary: 3Q FYE Mar 2005 vs 3Q FYE Mar 2006 (9 months)
Financial Summary:3Q of FYE Mar. 31, 2005 vs. 3Q of FYE Mar. 31, 2006 (in 9 months) (in million yen, %) 3Q of FYE 3Q of FYE Mar. 31, 2005 Mar. 31, 2006 Change (Apr. 2004-Dec. 2004) (Apr. 2005-Dec. 2005) Operating Revenues 15,183 27,227 +79.3% Net Operating Revenues 14,349 26,124 +82.1% SG&A 8,419 8,
Slide 6: Financial Summary: 3Q FYE Mar 2005 vs 3Q FYE Mar 2006 (3 months)
Financial Summary:3Q of FYE Mar. 31, 2005 vs. 3Q of FYE Mar. 31, 2006 (in 3 months) (in million yen, %) 3Q of FYE 3Q of FYE Mar. 31, 2005 Mar. 31, 2006 Change (Oct. 2004-Dec. 2004) (Oct. 2005-Dec. 2005) Operating Revenues 4,887 12,031 +146.2% Net Operating Revenues 4,596 11,642 +153.3% SG&A 2,721 3,
Slide 7: Financial Summary: 2Q vs 3Q of FYE Mar 2006
Financial Summary:2Q of FYE Mar. 31, 2006 vs. 3Q of FYE Mar. 31, 2006 (in million yen, %) 2Q of FYE 3Q of FYE Mar. 31, 2006 Mar. 31, 2006 Change (Jul. 2005-Sep. 2005) (Oct. 2005-Dec. 2005) Operating Revenues 9,045 12,031 +33.0% Net Operating Revenues 8,706 11,642 +33.7% SG&A 2,869 3,323 +15.8% Opera
Slide 8: Financial Highlights (Quarterly Basis)
Financial Summary:Financial Highlights (Quarterly Basis) Net Operating Revenues SG&A (in million yen) (in million yen) 12,000 11,642 12,000 8,706 8,000 8,000 6,340 5,774 4,000 3,004 2,869 3,323 4,000 2,781 0 0 4Q of FYE Mar. 1Q of FYE Mar. 2Q of FYE Mar. 3Q of FYE Mar. 4Q of FYE Mar. 1Q of FYE Mar.
Slide 9: Brokerage Revenues and Non-brokerage Revenues
Financial Summary:Brokerage Revenues and Non-brokerage Revenues Brokerage Revenues Non-brokerage Revenues (=Brokerage Commission Revenues + Financial Income) (=Total Revenues – Brokerage Revenues) (in million yen) (in million yen) 12,000 Historical Historical High High 2,000 Historical Historical Hi
Slide 10: Improved Profitability through the Merger of Subsidiaries
Financial Summary:Improved Profitability through the Merger of Subsidiaries SG&A and Number of Executed Trades (Number of Profitability(Operating Income/Operating Revenues) (in million yen) Executed Trades) 8,000 140,000 80% Total SG&A System Related Expenses, etc. Historical Historical High High 7,
Slide 11: Comparison with Competitors: High Profitability
Comparison with Competitors High Profitability Enhancing profitability:69% (Historical High) Cost reduction through the merger and careful balance sheet management are key drivers (Annualized) 80% 70% Operating Income/Operating Revenues 69% 60% 50% 40% 30% 20% 10% 0% 2Q of FYE Mar. 3Q of FYE Mar. 4Q
Slide 12: Revenues/SG&A Per Customers' Assets in Custody
Comparison with Competitors Revenues/SG&A Per Customers’ Assets in Custody (Annualized) Source:Company IR Data 3.50% 9Operating Revenues per Customers’ Assets in Custody Matsui MatsuiSecurities Securities (consolidated) (consolidated) 2Q 2Q of of FYE FYE Mar. Mar. 2006 2006 Kept rising in the strong
Slide 13: 2. Business Model and Future Development
1. Financial Results 2. Business Model and Future Development 12
Slide 14: Mission Statement
Mission Statement Take position as a total financial service provider, not just as an online brokerage firm Offer comprehensive products and service line-ups with “World Class Quality” Support passive investors to manage his/her financial assets efficiently Strengthen “Products Origination C
Slide 15: Competition Analysis Five Management Measures
Competition Analysis Five Management Measures Competition Environment Competitors 9Expanding market presence of individual investors stimulated by national policy 9Online securities Monex Style Market share of individual investors:38%(*) (Source:Newspaper) ¾Full-line ( E*trade) 9Dominance in retail
Slide 16: Competition Analysis Concrete Policies
Competition Analysis Concrete Policies Concrete Policies Brokerage Business Non-brokerage Business Customer Base Stable Brokerage System Expansion of IPO Business Alliance (Intermediary Business, etc.) 9Pre-condition 9Positive 9Positive 9Less compatible advantage of technical ¾Keep attaining lead
Slide 17: Current and Future Business Models
Current and Future Business Models Strengthening our Financial Platform, taking advantage of the Bull Market (million) Potentiality 12,000 Brokerage -Expected further growth resulting from changes in national policies -Future cash inflow from banks, 10,000 postal savings and other traditional securi
Slide 18: Strategic Cost Management - Comparison with E*trade
Strategic Cost Management - Comparison with E*trade - (in million yen) Brokerage Commission Revenues and System Related Expenses System Related Expenses/Trading value 10,000 Brokerage Brokerage Commission Commission Revenues Revenues 8,587 0.04% 0.037% 0.036% 8,116 7,500 5,992 6,205 6,064 4,627 5,00
Slide 19: System Reinforcement Aiming to Provide the Most Stable Trading Platform
System Reinforcement Aiming to Provide the Most Stable Trading Platform Elaborative Preparation of System Reinforcement foreseeing Account & Transaction Increase From January 2006 System Reinforcement which can process up to 1,000,000 accounts January Additional placement of Web Servers Additional p
Slide 20: Brokerage Business: Providing the Best Trading Platform
Brokerage Business Providing the Best Trading Platform Monex Nigh Time Trading Steady growth of Major Revenues -Attractive investment platform- Keeping No.1 growth of brokerage value in the online Monthly executed night time trading value : brokerage firms by the total financial services :commission
Slide 21: Underwriting Business: Increase Lead Manager Mandates and Underwriting Shares
Underwriting Business: Increase both Lead Manager Mandates and Underwriting Shares Constant increasing of Underwriting Shares Strengthening Capital Market Team For each of 3Q and period from 1Q to 3Q of FYE Mar. 2006, the Hiring top players number of underwriting of shares on IPOs TSE,OSE,JQ is -Num
Slide 22: FOREX and Fixed Income Businesses
FOREX and Fixed Income Businesses: To be the Top Runner in Domestic Retail Business Foreign Bonds First in the world to sell the smallest denominated World Bank Notes – An Entry Model of Foreign Bond Investment Issue Date Nov. 21, 2005 Dec. 19, 2005 Names World Bank Notes (AUD) World Bank Notes (NZD
Slide 23: Mutual Funds Business
Mutual Funds Business Highly Selected Funds, Front-Runner Among Online Mutual Fund Distributors Continuous Record-Breaking Sales Value and Number of Trades Strengthened Product Line Big leap forward to be the core revenue sources Newly launched funds to meet customers’ ongoing -Doubled trading value
Slide 24: Alternative Investments
Alternative Investments: Highest Quality Alternative Products to Individual Investors First Full-fledged Fund Expansion of “Gatekeeper”Function (MAI) Investment Investment Trust Trust Linked Linked with with Fund Fund of of Asian Asian Funds Funds “Asia “Asia Focus” Focus” [Launched in Jul.2005] Pro
Slide 25: Monex University
Monex University: Authentic Investment Education for All Individual Investors Monex Investors Education Off-line Seminars and Study Sessions Books 35 Seminars, about 3,500 participants per month [Since Sep.2005] Collaboration with Vanguard Investments Japan, Mini seminars on almost everyday at Monex
Slide 26: Business Alliances: Expansion of Customer Platform
Business Alliances Expansion of Customer Platform Alliances with Nationwide Financial Institutions Alliances with Local Financial Institutions and Other Firms and Internet Banks Securities Intermediary Account Opening Introduction Credit Credit Saison Saison [Started [Started in in Dec. Dec. 2004] 2
Slide 27: Competitive Services and Products
Competitive Services and Products: For All Customers’ Satisfaction [As of Jan 18, 2006] Fixed Equities Mutual Funds Others Income Stock Alternative Night Funds Open In-house Stop JGB Monthly China/India Credit China U.S. Time Small- Lending CX ATM Account Margin Loss /Foreign Auto- Equity (Commoditi
Slide 28: To Our Stakeholders
To Our Stakeholders Disclosure Policy New Challenges More Communication! Crystal Clear” Clear” Disclosure Policy IR Workshop on “MBH” Daily “Monex Mail” Monex Beans Holdings Securities Code : 8698 Weekly Disclosure on Account Numbers, etc. January 24, 2006 Monthly Disclosure on Account Numbers, etc.
Slide 29: To Our Shareholders
To Our Shareholders Highly Diversified Shareholders, after global offering in Sep.2005 Others excluding Top 10 Nikko Cordial Nikko Cordial Others excluding Shareholders Corporation Corporation Top 10 30% 23% Offering Offering Shareholders 26% 37% Sep. Sep. 2005) 2005) Oki Matsumoto Sony 11% Corporat
Slide 30: Stock Valuation Index
Stock Valuation ndex Monex Beans Holdings E*trade Matsui kabu.com Market Cap (as of Jan. 19, 2006) 365 billion yen 1,030 billion yen 444 billion yen 353 billion yen 2Q of FYE 3Q of FYE 2Q of FYE 2Q of FYE 2Q of FYE General Index Mar. 2006 Mar. 2006 Mar. 2006 Mar. 2006 Mar. 2006 Net Income(quartely b
Slide 31: MBH Monex Beans Holdings, Inc.
MBH Monex Beans Holdings, Inc.
Monex Beans Holdings — Q3 FY2006 Earnings Presentation on 6ix