Monex Group, Inc. · TSE:8698
Monex — Q3 FYE March 2005 Earnings Presentation
27 slides from Monex's earnings presentation, Jan 21, 2005
Slide 1: Financial Results 3Q of Fiscal Year Ending March 31, 2005
Financial Results 3Q of Fiscal Year Ending March 31, 2005 January 21, 2005 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 third quarter o
Slide 2: Table of Contents
Table of Contents 1. Financial Results and Business Overview 2. Business Model and Future Development Financial Summary 3Q of FYE Mar. 31, 2004 vs. 3Q of FYE Mar. 31, 2005 (in 9 months) 3 Mission Statements 18 2Q of FYE Mar. 31, 2005 vs. 3Q of FYE Mar. 31, 2005 (in 3 months) 4 Current and Future Bus
Slide 3: 1. Financial Results and Business Overview
1. Financial Results and Business Overview 2. Business Model and Future Development 2
Slide 4: Financial Summary: 3Q FYE Mar. 2004 vs. 3Q FYE Mar. 2005 (9 months)
Financial Summary: 3Q of FYE Mar. 31, 2004 vs. 3Q of FYE Mar. 31, 2005 (in 9 months) (in million yen, %) 3Q of FYE Mar. 2004 3Q of FYE Mar. 2005 (Apr. 2003-Dec. 2003 (Apr. 2004-Dec. 2004) Change Operating Revenues 9,991 15,183 52.0% Net Operating Revenues 9,530 14,349 50.6% SG&A 6,256 8,419 34.6% Op
Slide 5: Financial Summary: 2Q vs. 3Q of FYE Mar. 2005 (3 months)
Financial Summary: 2Q of FYE Mar. 31, 2005 vs. 3Q of FYE Mar. 31, 2005 (in 3 months) (in million yen, %) 2Q of FYE Mar. 2005 3Q of FYE Mar. 2005 (Jul. 2004-Sep. 2004) (Oct. 2004-Dec. 2004) Change Operating Revenues 4,530 4,887 7.9% Net Operating Revenues 4,312 4,596 6.6% SG&A 2,892 2,721 -5.9% Opera
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 4,596 5,000 4,000 3,644 3,698 4,000 2,703 2,806 2,892 2,721 3,000 3,000 2,109 2,278 2,000 2,000 1,000 1,
Slide 7: Net Operating Revenues vs. Selling, General and Administrative Expenses
Financial Summary: Net Operating Revenues vs. Selling, General and Administrative Expenses 5,440 (in million yen) 4,907 4,596 4,312 3,644 3,698 2,278 2,703 2,806 2,892 2,721 2,109 FYE Mar. 31, 2004 FYE Mar. 31, 2005 2Q 3Q 4Q 1Q 2Q 3Q Net Operating Revenues Selling, General and Administrative Expense
Slide 8: Comparison with Others: Retail Trading Value & Equity Brokerage Commissions
Comparison with Others: Retail Trading Value & Equity Brokerage Commissions First Half of FYE Mar. 31, 2005 Market Share of Trading Value (MBH vs. Matsui, E*trade, Rakuten and Kabu.com) 25 E*trade Market Share of Trading Value E*trade Others 20 20 Matsui 40 15 Market Share of Trading Value Matsui 10
Slide 9: Comparison with Others: Individual Investors Trend
Comparison with Others: Individual Investors Trend Trading Value Major Online Brokers vs. Major Full-line Brokers The ratio of internet trading value has increased significantly since The trading value of major online brokers has March 2003. More than 80% of individual investors choose internet surp
Slide 10: Comparison with Others: Customers' Assets in Custody per Accounts
Comparison with Others: Customers’ Assets in Custody per Accounts MBH maintains preeminent position in “Number of accounts” and “Customers’ assets in custody”. Number of accounts: 411,165 accounts, Customers’ assets in custody: 1,401 billion yen (as of Dec. 31, 2004) Customers’ assets in custody (in
Slide 11: Brokerage Business: Three Strategies Focused on Active Traders
Business Overview Brokerage Business:Three Strategies Focused on Active Traders Services mentioned below are now available only at Nikko Beans. After the merger, Monex Beans Securities will provide all services mentioned below. Strategy No. 1 50% Commission Return These three strategies will Volume
Slide 12: Underwriting Business: Leading Online Underwriter
Business Overview Underwriting Business: Leading Online Underwriter Deals in 3Q of FYE Mar. 31, 2005 (Monex only) IPO Participation Ratio IPO/PO Company Name IPO Market Date Value Market (Monex and Nikko Beans, from Apr. 2004 to Dec. 2004) /PO U/S (in million yen) Share H.S. Securities Co., Ltd. IPO
Slide 13: Mutual Funds Business: Largest Online Mutual Fund Distributor
Business Overview Mutual Funds Business: Largest Online Mutual Fund Distributor Onshore Equity Funds Onshore Fixed Income Funds Clear-cut fund categories “Beans Value Pack” “Inflation-indexed bond fund” “Nikkei 225 No-load Open” Hybrid Funds “Zaisan-Sanbunpo” Wide range of funds to match “DKA Asset
Slide 14: FX Business: No. 1 FX Service Provider for Retail
Business Overview FX Business: No. 1 FX Service Provider for Retail Market Share of MBH Number of Accounts Largest number of accounts and margin (as of Dec. 31, 2004) 15% balance in retail as of Dec. 31, 2004) Gaitame.com 11% 24 hours a day Others Tradable even in Japanese holidays 9% Matsui 57% Mat
Slide 15: Fixed Income Business
Business Overview Fixed Income Business: “Deposits” to “Investments”, “Yen to “Multi Currencies” Multi Deposits Investments Yen Currencies Provide wide range of products investing in different asset classes Middle or Long-term investments products in “Yen” and/or “Multi Currencies” with relatively l
Slide 16: Product Line: All-Inclusive Financial Services through the Internet
Business Overview Product Line: All-Inclusive “Financial” Services through the Internet Ideal “Financial Paradise” with luxurious package of selections available to Japanese investors Being ahead of Providing selected services, upcoming demands necessary in asset formation Long-term Investors with A
Slide 17: Investors Education: Toward the Expansion of Individual Investors Base
Business Overview Investors Education: Toward the Expansion of Individual Investors Base Paradigm Shift “The era of asset management with self-responsibility” Why has MBH placed the emphasis on “Education” ? Premises: 1.“Customers seek profits from investments” 2.“Beginners’ luck will not last forev
Slide 18: 2. Business Model and Future Development
1. Financial Results and Business Overview 2. Business Model and Future Development 17
Slide 19: Mission Statements
Mission Statements 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 Pursue less operating cost / esta
Slide 20: Current and Future Business Models
Current and Future Business Models Potentiality -Expected further growth resulting from Current Future changes in national policies -Future cash inflow from banks, postal savings and other traditional securities Brokerage firms -Remain as a major revenue source, but 55% Brokerage revenue share among
Slide 21: Analysis on Revenues and Expenses per Customers' Assets
Analysis on Revenues and Expenses per Customers’ Assets Assumptions of Analysis 1. Revenues: Securities Companies = Net Operating Revenue = (A), Banks = Ordinary Revenue – Financial Expenses = (A) 2. Expenses: Securities Companies = (A) - Ordinary Income, Banks = (A) – Ordinary Income 3. Customers a
Slide 22: Securities Intermediary Business With Credit Saison
Securities Intermediary Business With Credit Saison -Access 16 million <<Saison>> cardholders through “Over the Counter” and “Website” Saison -Energize new accounts opening MBH Cardholders Customers -Send MBH PR information to cardholders 410,000 16,000,000 Next Steps -Expand distribution base and i
Slide 23: Unique Services: Active Introduction to Meet Individuals' Potential Demand
Unique Services: Active Introduction to Meet Individuals’ Potential Demand First and the only online broker to provide these services On top of loan fees Stock StockLending Lending Commodity CommodityFutures Futures Automatic credit “Dividends equivalent” to client accounts Book-keeping and Archives
Slide 24: Alternative Investments Fund Business
Alternative Investments Fund Business: Monex declares Y2005 as “the 1st year in alternative investment history in Japan” Monex Alternative Investments, Inc., Activity Update Jan. 2005 “Monex Fund of Funds I” launched in Dec. 2004 Currently, Selecting and Investing in Private Equity Funds/Hedge Funds
Slide 25: Effects of Business Merger: Maximization of the Potentiality as an Online Broker
Effects of Business Merger: The Maximization of the Potentiality as an Online Broker 1. Products and Service Line-ups Monex Beans Sec. (MBS) “Common Services” “Common Services” Full-line services and products Cash and Margin Trading Cash and Margin Trading (including alternative Mutual Funds Mutual
Slide 26: Shareholders and Business Partners
Shareholders and Business Partners Major shareholders Business Partners Nikko Cordial Corporation 27.24% Nikko Cordial Corporation 29.83% Sony Corporation Sony Corporation Credit Saison Co.,Ltd. 1.58% MBH MBH Credit Saison Co., Ltd. Credit Saison Co., Ltd. Recruit Inc. 2.44% Sony Corporation Mizuho
Slide 27: Monex Beans Holdings, Inc.
MBH Monex Beans Holdings, Inc.
Monex Group — Q3 FYE March 2005 Earnings Presentation on 6ix