Monex Group, Inc. · TSE:8698
Monex — FY2009 Earnings Presentation
44 slides from Monex's earnings presentation, Apr 27, 2009
Slide 1: Financial Results of Fiscal Year Ended March 31, 2009
April 27, 2009 Financial Results of Fiscal Year Ended March 31, 2009 This is an English translation of Japanese presentation material prepared for IR conference held on the date above; it includes the information on consolidated financial summary under Japanese GAAP. If there is any discrepancy betw
Slide 2: Important Matters Concerning Product-related Risks
Important Matters Concerning Product-related Risks This material is explanatory material on the financial results of Monex Group, Inc. (“the Company”). The descriptions herein concerning the products, services, etc. which are handled by the Company’s group companies (“the Group Companies”), are made
Slide 3: Our Business Principles
Our Business Principles 1. PURSUE A SPIRIT OF INNOVATION We will constantly strive to pioneer new fields in finance and propose new approaches to managing money. 2. STAY CUSTOMER FOCUSED We believe that the best guide to our corporate activities is the voice of our customers. With this guide, we wil
Slide 4: Table of Contents
Table of Contents Important Matters Concerning Product-related Risks ･･･ p.1 2. Management Indicators Our Business Principles ･･･ p.2 (1) Management Indicators ･･･ p.23 (2) Revenues/SG&A per Customers’ Assets in Custody ･･･ p.24 I. Financial Results (3) Current and Future Structure of Revenue and Cu
Slide 5: 1. Financial Results
1. Financial Results 2. Strategies 3. Businesses 4. To our Shareholders 5. Appendix 4
Slide 6: Financial Overview
Financial Overview ■Financial Overview of 4Q(Jan.-Mar.) of FYE Mar. 31, 2009 Net operating revenues 4,359 million yen -10.1% from 3Q of FYE Mar. 31, 2009 ・Brokerage commissions 2,342 million yen -19.6% from 3Q of FYE Mar. 31, 2009 ・Net gain on trading account 454 million yen 54.2% from 3Q of FYE Ma
Slide 7: Highlights of 4Q (1) Net Operating Revenues
Highlights of 4Q (1) Net Operating Revenues ■Net operating revenues of 4Q FYE 2009 4,359 million yen ■Net operating revenues of FYE 2009 21,053 million yen （Decrease by 487 million yen (-10.1%) from 3Q of FYE 2009) （Decrease by 5,934 million yen (-22.0%) from FYE 2009) ◆Trading income from FX transa
Slide 8: Highlights of 4Q (2) SG&A
Highlights of 4Q (2) SG&A ■SGA of 4Q FYE 2009 3,902 million yen ■Net operating revenues of FYE 2009 15,784 million yen （Decrease by 129 million yen (-3.2%) from 3Q of FYE 2009) （Increase by 1,812 million yen (+13.0%) from FYE 2009) ◆Slightly decreased due to cost reduction ◆ Up-front investment for
Slide 9: Highlights of 4Q (3) Balance Sheet
Highlights of 4Q (3) Balance Sheet ■Maintain a safe financial structure by maintaining liquidity and credit trust, and by controlling risk assets (*2) Non-current assets（Investment value of risk assets） (in billion yen) (in billion yen) Property・equipment 0.5（Facilities, equipment, etc） Software 1.4
Slide 10: Financial Summary: 3Q vs. 4Q of FYE Mar. 31, 2009
Financial Summary : 3Q of FYE Mar. 31, 2009 vs. 4Q of FYE Mar. 31, 2009 (in 3 months) (in million yen, %) 3Q of FYE 4Q of FYE Mar. 31, 2009 Mar. 31, 2009 Change (Oct. 2008-Dec. 2008) (Jan. 2009-Mar. 2009) Operating Revenues 5,932 4,927 -16.9 ％ Net Operating Revenues 4,847 4,359 -10.1 ％ SG&A 4,032 3,
Slide 11: Financial Summary: FYE Mar. 2008 vs. FYE Mar. 2009
Financial Summary : FYE Mar. 31, 2008 vs. FYE Mar. 31, 2009 (in million yen, %) FYE Mar. 31, 2008 FYE Mar. 31, 2009 Change (Apr. 2007-Mar. 2008) (Apr. 2008-Mar. 2009) Operating Revenues 30,497 24,812 -18.6％ Net Operating Revenues 26,988 21,053 -22.0 ％ SG&A 13,971 15,784 13.0 ％ Operating Income 13,01
Slide 12: Financial Summary: Financial highlights (quarterly trend)
Financial Summary：Financial highlights (quarterly trend) ■Net operating revenues and Operating Income ■ROE (Annualized) (million yen) (billion yen) 60% 20,000 1,600 50% Total Trading Value 40% of Individual Investors 30% 18,000 19% in 3 major stock exchanges and JASDAQ 1,400 20% 13% 10% 4% (Average
Slide 13: Financial Summary: Profit margin and cost structure
Financial Summary：Profit margin and cost structure ■Profit Margin ■Cost Structure (Jan. 2009 - Mar. 2009) (Operating income/ Net Operating revenues)* 50% 45% Strategically 45% Fixed costs and costs controllable costs correlated to the number of 40% 34% 33% accounts 35% Commission to 30% stock exchan
Slide 14: Financial Summary: Quarterly trends in income statement
Financial Summary：Quarterly trends in income statement (in million yen) FYE Mar.31, 2008 FYE Mar.31,2009 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Brokerage commissions 4,228 4,160 4,022 3,692 3,505 2,612 2,911 2,342 Underwriting and distribution commissions 19 77 5 9 1 0 1 2 Subscription and distribution commissions
Slide 15: Financial Summary: Quarterly trends in SG&A
Financial Summary：Quarterly trends in SG&A (in million yen) FYE Mar.31, 2008 FYE Mar.31,2009 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Transaction-related expenses 1,361 1,310 1,151 1,099 1,182 1,172 1,188 1,095 Commissions paid 231 248 245 233 238 214 240 190 Exchange and association dues 180 168 178 132 157 111 109
Slide 16: 2. Strategies
1. Financial Results 2. Strategies 3. Businesses 4. To our Shareholders 5. Appendix 15
Slide 17: Mission Statement
Mission Statement Take the position as an online integrated financial service provider for individual investors Provide individual investors with institutional investor level investment opportunities Offer comprehensive products and services with “world class quality” Empower investors educa
Slide 18: The Monex Group
The Monex Group Holding Company （As of March 31, 2009） [ Financial products and services for individual investors ] [ Overseas subsidiary and office ] Securities Company FX Business MBH America, Inc. Research in the global financial industry （Investment Ratio） Monex G: 100% Monex FX, Inc. Specialize
Slide 19: Major Initiatives of FYE March 2009
Major Initiatives of FYE March 2009 ■Short-term Strategy: Online trading ◆Expanding active trader client Jul. 2008 Made Trade Science a wholly owned subsidiary Developing new products utilizing program trading and trading tools as an in-house laboratory of the Group ◆Strengthening FX business Apr. 2
Slide 20: Present Domestic Environment
Present Domestic Environment ■Need to adapt to change in individual investor needs Due to the recent turmoil in the global financial markets, in 2008 we saw the temporary reversal of the ongoing trend of shifting from deposits to proactive investment by individuals. This was also displayed in the sh
Slide 21: Road-map and Short-term Strategy
Road-map and Short-term Strategy ■Short-term Strategy : Building a solid business Road-map platform Our goal is to become a GLOBAL TECHNOLOGY ◆Lowering the break-even point through cost reduction -BASED RETAIL financial services provider Cost reduction by 1 billion yen made before this fiscal year
Slide 22: Key Mid and Long-term Strategy
Key Mid and Long-term Strategy ■Mid-term goal: Expand asset management business, Long-term goal: Expand our business globally in order to enhance our client base and trading Strategy for expanding asset management business World class quality product and service ‘Product Infrastructure’ European Eur
Slide 23: Implementation of Business in China
Implementation of Business in China ■From business research to business launch ■Outline of the new business ◆Achievements ◆Address the needs to strengthen financial knowledge and skills in the PRC March 2008 - Establishment of Beijing Representative Office and commencement of full-scale business -Gr
Slide 24: Management Indicators
Management Indicators Management Policy Low cost / Diversification of portfolio management Capital Efficiency High profitability -oriented business model revenue sources Management Indicators -Customers’ assets in custody -Revenue structure - Revenues/ SG&A per ROE（Return on equity） Operating Marg
Slide 25: Comparison Analysis: Revenues/SG&A per Customers' Assets in Custody
Comparison Analysis : Revenues/SG&A per Customers’ Assets in Custody (Annualized) 2.5% Comparison of other online securities Matsui Mitsui Sumitomo FG (Consolidated) - To lower the percentage of dependency on (Consolidated) 3Q of Mar. 2009 brokerage business 3Q of Mar. 2009 - To lower the percentage
Slide 26: Current and Future Structure of Revenues and Customers' Assets by Product
Current and Future Structure of Revenues and Customers’ Assets by Product ■Strengthen mutual fund business and diversify revenue sources 【Current Structure (FYE Mar. 2009)】 Direction of Each Business Line 【Future Structure】 （Foreign business development plan is not included) Investment Banking Other
Slide 27: 3. Businesses
1. Financial Results 2. Strategies 3. Businesses 4. To our Shareholders 5. Appendix 26
Slide 28: Stock Brokerage Business: Expansion of trading shares
Stock Brokerage Business：Expansion of trading shares ■Business of U.S. ETFs and stocks ■Enhancement of trading shares ◆Trading of U.S. ETFs and stocks steadily increased ◆Growth of “NIKKEI 225 Futures” - Number of accounts reached 14,000 in over seven months -Monex shares growing due to our reasonab
Slide 29: Interest Product Business
Interest Product Business： Adding varieties to the fixed income products and growth of the stock lending service ■Enhancing fixed income products ■Original short-term investment products/services ◆“Monex Notes for Individuals” series (new variation) ◆Growth of the stock lending service Expand the cu
Slide 30: FX Business: Increasing revenues in a growing market
FX Business: Increasing revenues in a growing market ■ Started ‘FX PLUS’ by Monex, Inc. ■Revenue from FX business Revenue （million yen） Trading volume （billion yen) ◆ Providing a new service ‘FX PLUS‘, as of Nov. 8, 2008 350 Monex, FX Inc. revenue Started ‘FX PLUS’ 800 Monex,Inc. revenue from Nov. 1
Slide 31: Mutual Fund Business
Mutual Fund Business：Top-class online mutual fund business ■Strengthen product lines and services ■Top-class online mutual fund sales to expand mutual fund balance ◆Sales volume and balance ◆Keeping the top-class position in online mutual fund sales （billion yen （billion yen/ Total sales amount of e
Slide 32: Alternative Investment Business
Alternative Investment Business：A leap forward into institutional business arena ■Achievements in turbulent market conditions http://www.monexai.com/english.php ◆Japan portfolio extracted from FMA* ■Development of institutional investor business (Charts the rise in value of 100 at the start of 2007/
Slide 33: Investment Banking Business
Investment Banking Business ： Increase presence in the IB business field ■ IPO underwriting and related business (Monex, Inc.) ◆Participation in IPO Deals -Due to the stock market slump, the number of IPOs and the fund comparison for 2007,2008,2009 raising size has shrunk. It has caused a weak perfo
Slide 34: Intelligence Infrastructure: Creating a new value of Monex Group
Intelligence Infrastructure : Creating a new value of Monex Group ■Creating a new value - Advisory ■Continuous seminars and information enrichment ◆ Creating a new value of Monex ◆Providing valuable information and knowledge for • Providing proper investment advice in addition to global strategic in
Slide 35: R&D: Kabu-Robo
R&D: Kabu-Robo ■ Recent developments of Trade Science Trade Science Corporation http://www.trade-sc.jp/englishhtml ◆ Investment advisory services - Using the exclusively licensed Kabu-robo’s, selected from ◆ R&D institution of Monex Group the investment challenge, we are planning to launch the Kabu-
Slide 36: Other Financial Businesses (1)
Other Financial Businesses (1) ■Analysis of the latest financial information in the US ■Life insurance business ◆ Strengthening of information accumulation by ◆Lifenet Insurance Company MBH America (Subsidiary of Monex Group) http://www.lifenet-seimei.co.jp/ -Accumulation and analysis of information
Slide 37: Other Financial Businesses (2)
Other Financial Businesses (2) ■ Next generation contact center in Monex, Inc. ■(Ref.) Human resources information ◆ Enhancing the Hachinohe Center ◆ Maintaining advancement by continuing to hire new -As of April 2009, 53 members work at the Hachinohe Center graduates -Monex will continue the recrui
Slide 38: Administrative Action Taken Against Monex, Inc.
Administrative Action Taken Against Monex, Inc. ■Background ■Business Improvement Efforts On March 24, 2009, Monex, Inc. (“Monex”) received an order for business The main contents of the improvement report submitted by Monex to the suspension and a business improvement order from the Financial Servi
Slide 39: 4. To our Shareholders
1. Financial Results 2. Strategies 3. Businesses 4. To our Shareholders 5. Appendix 38
Slide 40: ROE and Dividend
ROE and Dividend ■Pursuing investment returns for our shareholders ◆ROE ◆Dividend Payout Policy 40% (since FYE March, 2008) -Target 50% of consolidated net income of current fiscal year -Interim dividends to be paid out 30% ◆Dividend Record - Since the profit level of FYE March 2009 decreased by 20%
Slide 41: Investors' Guide
Investors’ Guide ■Stock information of Monex Group, Inc. ◆Share price and volume Major shareholders and share distribution Volume (shares) Price（yen） (Recorded as of the end of March 2009) 2,500,000 250,000 Major shareholders Top 3 shareholders 2,000,000 200,000 Financial Institutions 9.90% Nikko C
Slide 42: 5. Appendix
1. Financial Results 2. Strategies 3. Businesses 4. To our Shareholders 5. Appendix 41
Slide 43: Additional Data (Monex, Inc.)
0.0 0.5 1.0 1.5 2.0 2.5 3.0 20 08 0 10 20 30 40 50 60 70 80 90 100 /3 20 08 /4 20 08 /4 20 08 /5 (billion yen) 20 08 (billion yen) /5 20 08 /6 20 08 /6 20 08 20 /7 ◆Cash Inflow/Outflow 08 /7 ◆Stock Inflow/Outflow 20 08 20 /8 08 /8 20 08 20 /9 08 /9 20 08 20 /1 08 0 /1 20 0 08 20 /1 08 1 /1 20 1 08 2
Slide 44: Customer Portfolio of Monex, Inc.
Customer Portfolio of Monex, Inc. (as of the end of March, 2009) ■ Sex ■ District Others 女性 Female 23.2% Tokyo Metropolitan 25.3% District Nagoya District 50.6% 男性 Male 8.5% 74.7% Osaka District 17.8% ■ Age ■ Occupation 70代以上 3.4% 会社員 Company Employee 46.9% Over 70 就業なし Unemployed 17.4% 60代 60 s 11.