Monex Group, Inc. · TSE:8698
Monex — Q1 FY2019 Earnings Presentation
35 slides from Monex's earnings presentation, Jul 27, 2018
Slide 1: Databook: Financial Results for 1Q of Fiscal Year Ending March 31, 2019
July 27, 2018 (TSE 1st Section: 8698) DATABOOK Financial Results for 1Q of Fiscal Year Ending March 31, 2019 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 from
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.34 1
Slide 3: 1. Market & Transaction Data
1. Market & Transaction Data 2. Financial Data 2
Slide 4: Market and Transaction Data (1) – Customers’ Assets in Custody
Market and Transaction Data (1) – Customers’ Assets in Custody (JPY million) Japan Segment U.S. Segment Asia-Pacific Segment 6,000,000 5,000,000 4,000,000 3,000,000 2,000,000 1,000,000 0 As of As of As of As of As of As of As of As of As of Jun.30, 2016 Sep.30, 2016 Dec.31, 2016 Mar.31, 2017 Jun.30,
Slide 5: Market and Transaction Data (2) – Number of Employees
Market and Transaction Data (2) – Number of Employees (person） Japan Segment U.S. Segment Asia-Pacific Segment Crypto Asset 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, 2016 Sep.30, 2016 Dec.31, 2016 Mar.31, 2017 Jun.30, 2017 Sep.30, 2017 Dec.31, 2017 Mar.31, 201
Slide 6: Market and Transaction Data (3) – Japan Segment Number of Accounts
Market and Transaction Data (3) – Japan Segment - Monex, Inc. (Number of accounts) ◆Number of total accounts & active accounts (account） Total accounts Active accounts 2,000,000 1,500,000 1,000,000 500,000 0 As of Jun. 30, As of Sep. 30, As of Dec. 31, As of Mar. 31, As of Jun. 30, As of Sep. 30, As
Slide 7: Market and Transaction Data (4) Japan Segment – Equities and ETFs
Market and Transaction Data (4) Japan Segment - Monex, Inc. (Equities and ETFs ) ◆Market share and value of equity trading ◆ Monex’s cash & margin trading value and margin balance Monex’s share in retail trading value of 2 major stock exchanges and Cash trading value per business day (left) (JPY 100
Slide 8: Market and Transaction Data (5) Japan Segment – 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) (JPY million) (JPY million) (JPY million) Sales of Investment Trusts(no-load) (left) 70,000 500,000 Sales of Investment Trusts(l
Slide 9: Market and Transaction Data (6) Japan Segment – FX
Market and Transaction Data (6) Japan Segment - Monex, Inc. (FX) ◆OTC FX business (JPY million) (JPY 100million) 1,500 150,000 Commissions(left) Trading revenue(left) Trading value (right) 1,000 100,000 500 50,000 0 0 1Q of FYE 2Q of FYE 3Q of FYE 4Q of FYE 1Q of FYE 2Q of FYE 3Q of FYE 4Q of FYE 1Q
Slide 10: Market and Transaction Data (7) Japan Segment – Customer Distribution
Market and Transaction Data (7) Japan Segment – Monex, Inc. (Customer distribution) ◆Active accounts by gender and age ◆Active accounts by occupation Corporate Professional Corporation executive (e.g. Doctor) All accounts Accounts opened within a year 35% 35% Homemaker Civil servant Self-employed 30
Slide 11: Market and Transaction Data (8) Japan Segment – Capital Adequacy Ratio
Market and Transaction Data (8) Japan Segment - Monex, Inc. (Capital Adequacy Ratio) ◆Capital adequacy ratio (JPY million) 50,000 500% Risk asset amount（left） Non-fixed capital （left） Capital adequacy ratio（right） 40,000 400% 30,000 300% 20,000 200% 10,000 100% 0 0% As of As of As of As of As of As
Slide 12: Market and Transaction Data (9) U.S. Segment – TradeStation Group
Market and Transaction Data (9) U.S. Segment – TradeStation Group ◆ Numbers of active accounts ◆ DARTs and VIX(*1) （thousand） (account) 150 20 80,000 Futures DARTs(left) Options DARTs(left) 70,000 Equities DARTs(left) Vix Close Avg. (right) 60,000 100 50,000 40,000 10 30,000 50 20,000 10,000 0 0 0 A
Slide 13: Market and Transaction Data (10) Asia-Pacific Segment – Monex Boom Securities
Market and Transaction Data (10) Asia-Pacific Segment- Monex Boom Securities ◆ Numbers of accounts with balances ◆ DARTs (account) 3,000 14,000 12,000 10,000 2,000 8,000 6,000 1,000 4,000 2,000 0 0 As o f Jun. As o f Sep. As o f Dec. As o f Mar. As o f Jun. As o f Sep. As o f Dec. As o f Mar. As o f
Slide 14: 2. Financial Data
1. Market & Transaction Data 2. Financial Data 13
Slide 15: Introduction: IFRS adoption and differences from JGAAP
Introduction 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 AP(*) with a view to creating a global online financial group ■ Consolidated fina
Slide 16: Consolidated financial results
Consolidated financial results (JPY million) 1Q FYE Mar. 1Q FYE Mar. Variance Change 2018 2019 Commission received 6,884 6,756 -128 -1.9% Net trading income 883 1,791 908 102.8% Financial income 3,951 4,889 938 23.7% Other operating income 127 175 48 38.2% Total operating revenue 11,845 13,612 1,767
Slide 17: Consolidated financial results (Reclassified)
Consolidated financial results (Reclassified) Reclassified consolidated statement of income (JPY million) 1Q FYE Mar. 2018 1Q FYE Mar. 2019 Variance Change Brokerage commissions 5,247 5,134 -114 -2.2% Stocks and ETFs 3,736 3,364 -372 -10.0% Options and Futures 1,511 1,768 257 17.0% Cryptocurrency -
Slide 18: Consolidated financial results (SG&A)
Consolidated financial results (SG&A) The details of SG&A in consolidated statement of income (JPY million) 1Q FYE Mar. 2018 1Q FYE Mar. 2019 Variance Change Transaction-related expenses 3,000 3,157 157 5.2% Commissions paid 981 1,255 274 27.9% Exchange and association dues 215 199 -16 -7.6% Communi
Slide 19: Quarterly consolidated financial results (Reclassified)
Quarterly consolidated financial results (Reclassified) Reclassified consolidated statement of income (JPY million) FYE Mar. 2018 FYE Mar. 2019 1Q 2Q 3Q 4Q 1Q Brokerage commissions 5,247 5,217 5,928 6,147 5,134 Stocks and ETFs 3,736 3,705 4,391 4,142 3,364 Options and Futures 1,511 1,513 1,537 2,005
Slide 20: Quarterly consolidated financial results (SG&A)
Quarterly consolidated financial results (SG&A) The details of SG&A in consolidated statement of income (JPY million) FYE Mar. 2018 FYE Mar. 2019 1Q 2Q 3Q 4Q 1Q Transaction-related expenses 3,000 2,765 2,987 3,211 3,157 Commissions paid 981 962 1,017 1,165 1,255 Exchange and association dues 215 226
Slide 21: Quarterly consolidated financial results (Other income and other expenses)
Quarterly consolidated financial results (Other income and other expenses) (JPY million) FYE Mar. 2018 FYE Mar. 2019 1Q 2Q 3Q 4Q 1Q Other financial income 336 -60 -25 47 140 Loss on valuation of investments in securities - - - - 34 Gain on sales of investments in securities 0 85 - 13 - Dividends inc
Slide 22: Quarterly financial results by segment (Japan, the US and Asia-Pacific)
Quarterly financial results by segment (Reclassified) (Japan, the US and Asia- Pacific) Reclassified statement of income (JPY million) FYE Mar. 2018 FYE Mar. 2019 1Q 2Q 3Q 4Q 1Q JPN US AP JPN US AP JPN US AP JPN US AP JPN US AP Brokerage commissions 3,263 1,903 139 3,289 1,840 131 3,965 1,871 131 3,
Slide 23: Quarterly financial results by segment (Crypto Asset, Investment)
Quarterly financial results by segment (Reclassified)(Crypto Asset Segment, Investment Segment) Reclassified statement of income (JPY million) FYE Mar. 2018 FYE Mar. 2019 1Q 2Q 3Q 4Q 1Q Crypto Asset Investment Crypto Asset Investment Crypto Asset Investment Crypto Asset Investment Crypto Asset Inves
Slide 24: Quarterly financial results by segment (SG&A) (Japan, US, Asia-Pacific)
Quarterly financial results by segment (SG&A)(Japan, the US and Asia-Pacific) The details of SG&A in statement of income (JPY million) FYE Mar. 2018 FYE Mar. 2019 1Q 2Q 3Q 4Q 1Q JPN US AP JPN US AP JPN US AP JPN US AP JPN US AP Transaction-related expenses 1,230 1,733 99 1,364 1,360 89 1,553 1,412 6
Slide 25: Quarterly financial results by segment (SG&A) (Crypto Asset, Investment)
Quarterly financial results by segment (SG&A)(Crypto Asset Segment, Investment Segment) The details of SG&A in statement of income (JPY million) FYE Mar. 2018 FYE Mar. 2019 1Q 2Q 3Q 4Q 1Q Crypto Crypto Crypto Crypto Crypto Investment Investment Investment Investment Investment Asset Asset Asset Asse
Slide 26: Quarterly segment results (Other income and expenses) (Japan, US, Asia-Pacific)
Quarterly financial results by segment (Other income and other expenses)(Japan, the US and Asia-Pacific) (JPY million) FYE Mar. 2018 FYE Mar. 2019 1Q 2Q 3Q 4Q 1Q JPN US AP JPN US AP JPN US AP JPN US AP JPN US AP Gain or loss on Financial 44 - - - - - - - - - - - - - - instruments for risk hedging Ga
Slide 27: Quarterly segment results (Other income and expenses) (Crypto Asset, Investment)
Quarterly financial results by segment (Other income and other expenses) (Crypto Asset Segment, Investment Segment) (JPY million) FYE Mar. 2018 FYE Mar. 2019 1Q 2Q 3Q 4Q 1Q Crypto Crypto Crypto Crypto Crypto Investment Investment Investment Investment Investment Asset Asset Asset Asset Asset Gain or
Slide 28: US Segment: Quarterly financial results (Reclassified) (in USD)
US Segment :Quarterly financial results (Reclassified) (in USD) Reclassified statement of income (USD thousand) FYE Mar. 2018 FYE Mar. 2019 1Q 2Q 3Q 4Q 1Q Brokerage commissions 17,067 16,579 16,584 22,826 20,377 Stocks and ETFs 4,255 3,635 3,785 5,242 4,731 Options and Futures 12,813 12,944 12,799 1
Slide 29: US Segment: Quarterly financial results (SG&A) (in USD)
US Segment :Quarterly financial results (SG&A) (in USD) The details of SG&A in statement of income (USD thousand) FYE Mar. 2018 FYE Mar. 2019 1Q 2Q 3Q 4Q 1Q Transaction-related expenses 15,538 12,259 12,502 14,261 14,849 Commissions paid 6,283 5,934 5,968 7,472 7,929 Exchange and association dues 21
Slide 30: Financial results by consolidated and segment
Financial results by consolidated and segment (JPY million) FYE Mar. 2017 FYE Mar. 2018 Variance Cons. * JPN US AP Cons. JPN US AP Cons. JPN US AP Commission received 26,349 15,267 10,858 347 29,196 16,968 11,858 557 2,847 1,701 1,001 209 Net trading income 4,498 4,499 - -1 3,865 3,865 - 0 -633 -634
Slide 31: Financial results by consolidated and segment (Reclassified)
Financial results by consolidated and segment(Reclassified) (JPY million) FYE Mar. 2017 FYE Mar. 2018 Variance Cons. JPN US AP Cons. JPN US AP Cons. JPN US AP Brokerage commissions 20,141 12,547 7,371 346 22,540 14,082 8,091 554 2,399 1,535 721 207 Stocks and ETFs 14,193 12,125 1,845 346 15,974 13,7
Slide 32: Financial results by consolidated and segment (SG&A)
Financial results by consolidated and segment(SG&A) (JPY million) FYE Mar. 2017 FYE Mar. 2018 Variance Cons. JPN US AP Cons. JPN US AP Cons. JPN US AP Transaction-related expenses 11,281 5,323 5,869 226 11,963 5,797 6,043 332 682 474 174 106 Commissions paid 4,114 1,229 2,965 56 4,125 1,407 2,842 85
Slide 33: Consolidated statement of financial position (1): Assets
Consolidated statement of financial position (1) ■Assets (JPY million) As of Mar. 31, As of Jun. 30, As of Mar. 31, As of Jun. 30, 2018 2018 2018 2018 Cash and cash equivalents 83,884 129,784 Property and equipment 2,122 2,299 Cash segregated as deposits 543,438 567,834 Intangible assets 49,851 50,0
Slide 34: Consolidated statement of financial position (2): Liabilities and Equity
Consolidated statement of financial position (2) ■Liabilities ■Equity (JPY million) As of Mar. 31, As of Jun. 30, As of Mar. 31, As of Jun. 30, 2018 2018 2018 2018 Derivative liabilities 5,340 5,466 Common stock 10,394 10,394 Margin transaction liabilities 29,683 36,188 Additional-paid in capital 40
Slide 35: Consolidated statement of financial position (3): Investments in securities
Consolidated statement of financial position (3) ■Investments in securities (JPY million) As of Mar. 31, As of Jun. 30, measurement method Description 2018 2018 Investments in securities 3,123 3,702 Fair Value Through Profit or Loss (FVTPL) - - Quoted prices (unadjusted) in active markets for identi