Monex Group, Inc. · TSE:8698
Monex — Q2 FY2015 Earnings Presentation
27 slides from Monex's earnings presentation, Oct 30, 2014
Slide 1: Data Book of Financial Results for 2Q of Fiscal Year Ending March 31, 2015
October 30, 2014 (TSE 1st Section: 8698) Data Book of Financial Results for 2Q 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 derive
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
Slide 3: 1. Market & Transaction Data
1. Market & Transaction Data 2. Financial Data 2
Slide 4: Customers' Assets in Custody
Market and Transaction Data (1) – Customers’ Assets in Custody (mil yen) 4,000,000 Japan Segment U.S. Segment China Segment 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 Sep.30, 2012 Dec.31, 2012 Mar.31, 2013 Jun.30, 2013
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 Sep.30, 2012 Dec.31, 2012 Mar.31, 2013 Jun.30, 2013 Sep.30, 2013 Dec.31, 2013 Mar.31, 2014 Jun.30, 2014 Sep.30, 2014 (person） FYE
Slide 6: Japan Segment - Monex, Inc. (Number of accounts)
Market and Transaction Data (3) – Japan Segment - Monex, Inc. (Number of accounts) ◆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 Sep. 30, 2012 As of Dec. 31, 2012 As of Mar. 31, 2013 As o
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 andOptionsDARTs (per business day）(left) （thousand） （100 mil yen
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
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 Self-employed 30% 30% executive Male
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
Slide 11: U.S. Segment – TradeStation Group
Market and Transaction Data (8) U.S. Segment – TradeStation Group ◆ DARTs and VIX(*) （thousand） 140 Futures DARTs(left) Options DARTs(left) Equities DARTs(left) Vix Close Avg. (right) 18 16 120 14 100 12 80 10 60 8 6 40 4 20 2 0 0 2Q of FYE 3Q of FYE 4Q of FYE 1Q of FYE 2Q of FYE 3Q of FYE 4Q of FYE
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 Sep. As of Dec. As of Mar. As of Jun. As of Sep. As of Dec. As of Mar. As of Jun. As of Sep. 2Q of FYE
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 Group) （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 rev
Slide 14: 2. Financial Data
1. Market & Transaction Data 2. Financial Data 13
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
Slide 16: Quarterly consolidated financial results
Quarterly consolidated financial results (million yen) FYE March 2014 FYE March 2015 1Q 2Q 3Q 4Q 1Q 2Q Commission received 10,763 7,518 7,937 7,324 6,314 7,205 Net trading income 2,821 1,832 1,723 1,634 1,244 1,175 Financial revenue 3,126 2,918 3,579 2,960 3,115 3,471 Other operating revenue 155 150
Slide 17: Quarterly consolidated financial results (Reclassified)
Quarterly consolidated financial results (Reclassified) Reclassified consolidated statement of income (million yen) FYE Mar. 2014 FYE Mar. 2015 1Q 2Q 3Q 4Q 1Q 2Q Brokerage commissions 9,174 6,123 6,463 5,812 4,906 5,710 Stocks and ETFs 7,533 4,848 5,195 4,436 3,627 4,352 Options and Futures 1,585 1,
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 2014 FYE March 2015 1Q 2Q 3Q 4Q 1Q 2Q Transaction-related expenses 3,320 2,939 2,953 3,023 3,006 3,220 Commissions paid 1,332 1,152 1,118 1,110 1,124 1,198 Exchange and ass
Slide 19: Quarterly consolidated financial results (Other revenue and other expenses)
Quarterly consolidated financial results (Other revenue and other expenses) (million yen) FYE March 2014 FYE March 2015 1Q 2Q 3Q 4Q 1Q 2Q Other financial revenue 2,296 4 116 -111 20 35 Gain on sales of investment securities 2,288 - - - - - Dividends income 3 - - - 16 34 Gain or loss on Financial ins
Slide 20: Quarterly financial results by segment
Quarterly financial results by segment (million yen) FYE March 2014 FYE March 2015 1Q 2Q 3Q 4Q 1Q 2Q 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 8,323 2,360 94 5,284 2,165 80 5,574 2,288 95 4,759 2,485 99 3,922 2,337 73 4,696 2,448 84 Net trading
Slide 21: Quarterly financial results by segment (Reclassified)
Quarterly financial results by segment (Reclassified) Reclassified consolidated statement of income (million yen) FYE March 2014 FYE March 2015 1Q 2Q 3Q 4Q 1Q 2Q 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 7,340 1,754 93 4,490 1,565 80 4,756 1,
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 2014 FYE March 2015 1Q 2Q 3Q 4Q 1Q 2Q 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 1,739 1,557 36 1,448 1,457 45 1,495 1,
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 2014 FYE March 2015 1Q 2Q 3Q 4Q 1Q 2Q Brokerage commissions 17,923 15,972 16,051 17,338 15,954 16,552 Stocks and ETFs 5,102 4,883 5,112 5,365 4,624 4,699 Options and Futures 12,8
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 2014 FYE March 2015 1Q 2Q 3Q 4Q 1Q 2Q Transaction-related expenses 15,910 14,868 14,164 15,051 14,970 16,397 Commissions paid 9,935 8,717 7,878 8,839 8,320 8,614
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 September 30, 2014 March 31, 2014 September 30, 2014 Cash and cash equivalents 85,442 87,199 Property and equipment 1,579 2,168 Cash segregated as deposits 426,719 469,469 Intangible assets
Slide 26: Consolidated statement of financial position (2)
Consolidated statement of financial position (2) ■Liabilities ■Equity (million yen) As of As of As of As of March 31, 2014 September 30, 2014 March 31, 2014 September 30, 2014 Derivative liabilities 9,047 11,302 Common stock 10,394 10,394 Margin transaction liabilities 36,308 38,964 Additional-paid
Slide 27: Consolidated statement of financial position (3)
Consolidated statement of financial position (3) ■Investments in securities (million yen) As of March As of September measurement method Description 31, 2014 30, 2014 Investments in securities 8,390 8,867 Fair Value Through Profit or Loss Quoted prices (unadjusted) in active markets for 579 467 iden