Slide 1: Financial Results for 2Q of Fiscal Year Ending March 31, 2023
TSE Prime : 8698 Monex Group Financial Results for 2Q of Fiscal Year Ending March 31, 2023 October 28, 2022
Slide 2: Corporate Philosophy
Corporate Philosophy Always a step ahead of the “Y” in “MONEY,” our name MONEX expresses our desire to embrace all people who are engaged at the forefront of our future. With state-of-the-art IT technology, globally universal values and a sense of professionalism, Monex Group designs innovative ways
Slide 3: Table of Contents
Corporate Philosophy p.1 Table of Contents p.2 Ⅰ. Highlights p.3 - p.10 Ⅱ. Consolidated Performance p.11 - p.29 Ⅲ. Business Update p.30 - p.46 Appendix: Group Overview p.47 -p.60 Disclaimer p.61 This is an English translation of Japanese presentation materials prepared in connection with the disclos
Slide 4: I. Highlights
MONEX GROUP I . Highlights
Slide 5: Monex Group's Three Goals
Monex Group's Vision Monex Group's Three Goals 1 2 3 A global company offering A diversified business Investment in growth pursuing new services that go portfolio with three pillars: expansion of scale and beyond the future of online securities business generating sustainable cash finance to optimiz
Slide 6: Focus areas of each major subsidiary
Highlight Focus areas of each major subsidiary Japan Segment US Segment Crypto Asset Segment Strengthened business Substantial improvement Global expansion foundation by promoting the in profitability strategy asset management model Acquiring new accounts and An increase in net financial income Plan
Slide 7: Highlight - US Segment
Highlight - US Segment Operating income improved by $18.6 million QoQ and returned to profitability this quarter. (USD Million) • Interest income from customer cash increased by The amount equivalent to operating income of US Segment $9.7M QoQ due to higher U.S. interest rates. 15 13.0 • TradeStatio
Slide 8: Financial interest impact and advertising expenses
Financial interest impact and advertising expenses Financial interest impact Advertising expenses Gains from management of customer cash in US dollars at Monex Securities and Each subsidiary actively uses advertising and promotion to expand its TradeStation belongs to the Monex Group. Expected highe
Slide 9: Growth Strategy of Coincheck (Crypto Asset Segment)
Growth Strategy of Coincheck (Crypto Asset Segment) Coincheck Group (CCG)*1 is proceeding with listing procedures. - After the proposed business combination with Nasdaq-listed SPAC, Thunder Bridge Capital Partners IV, Inc. (THCP), CCG is planned to go public on Nasdaq. (Termination date of Business
Slide 10: Highlights of 2Q of FYE Mar. 2023 – Consolidated Pre-tax Income
Highlights of 2Q of FYE Mar. 31, 2023 – Consolidated Pre-tax Income An increase in net financial income offset a decrease in net trading income, and earnings were stable QoQ due to the global diversification of the Group’s business portfolio. Excluding one-time expenses in the US Segment, consolidat
Slide 11: Fair Value of Monex Group
Fair Value of Monex Group Aim to enhance the Group’s equity value by manifesting the true value of major subsidiaries and by steadily implementing growth strategies at each company. Cumulative Fair Value of Monex Group With the listings in U.S. market, aims to Approx. ¥ 440B* manifest the corporate
Slide 12: II. Consolidated Performance
Ⅱ. Consolidated Performance 11
Slide 13: Highlights 2Q of FYE Mar. 2023 (3 months)
Highlights 2Q of FYE Mar. 2023 (3 months) Consolidated pre-tax income was ¥1.0B amid sluggish equity and crypto markets. The share of Japanese equities cash transaction value and the number of new accounts Japan opened are on an upward trend due to strengthened marketing efforts. Segment profit* was
Slide 14: QoQ Comparison (3 months) Consolidated Performance
QoQ Comparison (3 months) Consolidated Performance FYE Mar. 2023 FYE Mar. 2023 1Q 2Q Rate of (JPY million) Variance Reference (Apr. 2022– (Jul. 2022– change Jun. 2022) Sep. 2022) P15: Analysis of Japan segment Total operating revenue after deducting financial expenses and cost of sales 17,698 18,513
Slide 15: QoQ Comparison (3 months) Segment Performance
QoQ Comparison (3 months) Segment Performance Japan US Crypto Asset Asia Pacific Investment (JPY million) 2023/3 2023/3 2023/3 2023/3 2023/3 2023/3 2023/3 2023/3 2023/3 2023/3 1Q 2Q 1Q 2Q 1Q 2Q 1Q 2Q 1Q 2Q Total operating revenue after deducting financial expenses and cost of sales 7,345 7,744 6,918
Slide 16: QoQ Analysis: Operating Revenue (Japan)
QoQ Comparison (3 months) Analysis: Operating Revenue Japan: Gains from management of US dollar cash deposit and FX revenues increased, driving the entire revenue to the same level before the commission change of Japanese equities cash trading. Mutual fund related revenue has also grown steadily. ■
Slide 17: QoQ Analysis: SG&A (Japan)
QoQ Comparison (3 months) Analysis: SG&A Japan: Appropriate control of overall costs. ■ SG&A Quarterly SG&A Total +5.8％ (+374) * Figures in parentheses indicate the variance from the previous quarter (JPY million) (JPY million) 9,000 ■ Others（-19） ■ Advertising expenses（+79） 6,792 6,782 6,081 6,342
Slide 18: QoQ Analysis: Operating Revenue (US, USD)
QoQ Comparison (3 months) Analysis: Operating Revenue (USD) US: Net financial income increased significantly due to higher U.S. interest rates. Brokerage commissions also increased due to an increase in options and futures trading. ■ Total operating revenue after deducting financial expenses Quarter
Slide 19: QoQ Analysis: SG&A (US, USD)
QoQ Comparison (3 months) Analysis: SG&A (USD) US: Advertising expenses were significantly reduced to improve profitability in response to market conditions. In addition, TradeStation reduced headcounts and recorded severance payments. ■ SG&A Quarterly SG&A Total -10.2％ (-6,967) *Figures in parenthe
Slide 20: QoQ Analysis: Operating Revenue (Crypto)
QoQ Comparison (3 months) Analysis: Operating Revenue Crypto: Total revenue decreased driven by reduction in net trading income as trading volumes were affected by challenged crypto market. ■ Total operating revenue after deducting financial expenses Quarterly total operating revenue after deducting
Slide 21: QoQ Analysis: SG&A (Crypto)
QoQ Comparison (3 months) Analysis: SG&A Crypto: Total SG&A expenses decreased QoQ due to responsible management of advertising resources in response to current market conditions. ■ SG&A SG&A Total -29.5％ (-792) * Figures in parentheses indicate the variance from the previous quarter (JPY million) (
Slide 22: YoY Comparison (6 months) Consolidated Performance
YoY Comparison (6 months) Consolidated Performance FYE Mar. 2022 2Q FYE Mar. 2023 2Q Rate of (JPY million) Variance Reference (Apr.–Sep. 2021) (Apr.–Sep. 2022) change P23: Analysis of Japan segment Total operating revenue after deducting financial expenses and cost of sales 46,799 36,211 -10,588 -23
Slide 23: YoY Comparison (6 months) Segment Performance
YoY Comparison (6 months) Segment Performance Japan US Crypto Asset Asia Pacific Investment (JPY million) 2022/3 2023/3 2022/3 2023/3 2022/3 2023/3 2022/3 2023/3 2022/3 2023/3 2Q 2Q 2Q 2Q 2Q 2Q 2Q 2Q 2Q 2Q Total operating revenue after deducting financial expenses and cost of sales 14,754 15,089 11,
Slide 24: YoY Analysis: Operating Revenue (Japan)
YoY Comparison (6 months) Analysis: Operating Revenue Japan: Strong FX revenues and increased mutual fund revenues offset the impact of commission cut in Japan equities cash trading. Gains from management of the US dollar cash deposit contributed to the YoY increase in revenues. Total operating reve
Slide 25: YoY Analysis: SG&A (Japan)
YoY Comparison (6 months) Analysis: SG&A Japan: While commissions paid increased due to higher transaction volume by the transferred accounts from Shinsei Bank, systems investments were well under control. ■ SG&A SG&A Total +8.9％ (+1,073) * Figures in parentheses indicate the variance from the previ
Slide 26: YoY Analysis: Operating Revenue (US, USD)
YoY Comparison (6 months) Analysis: Operating Revenue (USD) US: Total revenue increased 16.9% YoY due to a significant increase in net financial income as a result of higher interest rates. Total operating revenue after deducting financial expenses and ■ Total operating revenue after deducting finan
Slide 27: YoY Analysis: SG&A (US, USD)
YoY Comparison (6 months) Analysis: SG&A (USD) US: Compensation and benefits and advertising expenses increased significantly as part of the previous growth strategy from last fiscal year to the previous quarter. TradeStation has shifted its strategy and controlled advertising expenses, and also red
Slide 28: YoY Analysis: Operating Revenue (Crypto)
YoY Comparison (6 months) Analysis: Operating Revenue Crypto: Significant decrease in net trading income due to the decline in crypto asset values, resulting in lower trading volumes. ■ Total operating revenue after deducting financial expenses Total operating revenue after deducting financial expen
Slide 29: YoY Analysis: SG&A (Crypto)
YoY Comparison (6 months) Analysis: SG&A Crypto: Advertising expenses have decreased by over 60% through responsible management of advertising resources in response to current market conditions. ■ SG&A SG&A Total -31.6％ (-2,114) * Figures in parentheses indicate the variance from the previous year (
Slide 30: History of Shareholders' Distribution
History of Shareholders’ Distribution Shareholder Return Policy: Stable dividend payments and flexible buybacks of its own shares, while investing in the long-term growth. ◆ History of dividend per share ◆ Return on equity ratio (JPY) 17.3% 18% Interim Year-end 20 13.4% 15% 12.9% 15 7.0 12% 7.5 or m
Slide 31: III. Business Update
MONEX GROUP IT. Business Update 30
Slide 32: Business Update Japan Segment 1/5
Business Update Japan Segment 1/5 Number of gross new account has increased, further accelerating growth with a potential collaboration with ChatBook, a new subsidiary specializing digital marketing. Japanese Equity Transaction Value Share Gross New Accounts Total Transaction value share QoQ New Acc
Slide 33: Business Update Japan Segment 2/5
Business Update Japan Segment 2/5 Revenue stream has become more diversified at Monex Securities due to a steady increase of revenues other than Japan equities brokerage commissions. Total Operating Revenue at Monex Securities Financial income Forex and fixed income Others Mutual funds Brokerage com
Slide 34: Business Update Japan Segment 3/5
Business Update Japan Segment 3/5 Despite the decline in the trading volume of US equities, US equity-related revenues increased due to the gains from management of US dollar cash deposits. Mutual Funds US Equities • Number of unique users for holding mutual funds grew • Wide range of stocks handled
Slide 35: Business Update Japan Segment 4/5
Business Update Japan Segment 4/5 The IFA/wealth management business has approximately 50 billion yen of assets in custody. The wealth management business was spun off to a dedicated company. Monex PB, Inc. established to stretch the wealth management business ・Monex Securities launched an IFA busin
Slide 36: Business Update Japan Segment 5/5
Business Update Japan Segment 5/5 Position the asset management business as a growth area with great potential. Robo-advisor AUM increased by 1.8 times YoY. Asset Under Management (AUM) Robo-advisor service AUM Robo-advisor services ¥ 44.8B （YoY ｘ1.8） ON COMPASS/ON COMPASS+ Total AUM Activist Fund (
Slide 37: Business Update US Segment 1/3
Business Update US Segment 1/3 Commission revenues remain steady even in a down market. Commission revenue and VIX Commission revenues from options and futures increased, while commission revenues from equities decreased in the down trend market. Equities Options Futures （USD Million） Crypto Other c
Slide 38: Business Update US Segment 2/3
Business Update US Segment 2/3 Interest income from customer deposits increased significantly as U.S. interest rates rose. Interest on customer cash Interest income from customer cash deposits belongs to TradeStation and is recorded as net financial income. A portion of interest earned is shared wit
Slide 39: Business Update US Segment 3/3
Business Update US Segment 3/3 TradeStation’s mission is to create the ultimate trader experience. Leveraging our long history of serving the active trader community we look to become the place for active and sophisticated traders and investors. Strategy TradeStation looks to increase profitability
Slide 40: Business Update Crypto Asset Segment 1/5
Business Update Crypto Asset Segment 1/5 Coincheck has maintained its leading position by steadily acquiring users despite the sluggish crypto asset market. No.1 position in Japan Coincheck retains its No.1 position in Japan continuing to operate in a highly responsible and compliant nature. No.1 do
Slide 41: Business Update Crypto Asset Segment 2/5
Business Update Crypto Asset Segment 2/5 NFT business revenue for the quarter was ¥160M due to headwinds in the NFT market. NFT businesses Coincheck NFT (β version): Features and Strengths - Leveraging the customer base of Coincheck, a crypto asset trading platform. - Offering the globally popular N
Slide 42: Business Update Crypto Asset Segment 3/5
Business Update Crypto Asset Segment 3/5 Coincheck intends to create and expand its digital economic sphere with an eye on Web3. Metaverse/Web3 Oasis TOKYO・Oasis KYOTO・Oasis MARS • Kenji Kohashi was appointed creative director of "Oasis TOKYO.” • Pre-opening of "Oasis KYOTO“ in Sep. 2022. • Strength
Slide 43: Business Update Crypto Asset Segment 4/5
Business Update Crypto Asset Segment 4/5 Through Coincheck Labs, Coincheck supports startups related to crypto assets and NFTs that are leading the adoption of Web3. Coincheck Labs Coincheck Labs Coincheck Labs helps the blockchain and Web3 ecosystem in Japan thrive by supporting entrepreneurs, star
Slide 44: Business Update Crypto Asset Segment 5/5
Business Update Crypto Asset Segment 5/5 Coincheck has identified numerous large growth opportunities that can be pursued organically and accelerated through M&A or partnerships. Deepen Existing Broaden Digital Asset Offerings Solutions Marketplace / NFTs Web3 Institutional Financial On-ramp Interna
Slide 45: Business Update Asia Pacific and Investment Business Segment
Business Update Asia Pacific and Investment Business Segment In the Investment Business segment, Monex Ventures was selected as an operator of the Social Impact Investment Fund promoted by Tokyo Metropolitan Government. Asia Pacific Segment Investment Segment • Accounts with balance is 23K (YoY +5%)
Slide 46: Business Update New Businesses (the Japan segment)
Business Update New Businesses (the Japan segment) Promote a STEAM education business and a genome platform business. STEAM Education Business Genome Platform Business Viling, Inc. operates classrooms to offer STEAM educations. Genex, Inc. creates a genome management platform. Whole genome testing s
Slide 47: Business Update ESG and Sustainability
Business Update ESG and Sustainability Provides trust services for customers to prepare for dementia. Revamped human resources strategy and disclosed it in the Integrated Report 2022. Enhanced disclosure on initiatives to improve financial access/inclusion and Group’s human resource strategies. Enha
Slide 48: Appendix: Group Overview
MONEX GROUP Appendix: Group Overview 47
Slide 49: Appendix: Highlights 2Q of FYE Mar. 2023 (3 months) 1/3
Appendix: Highlights 2Q of FYE Mar. 2023 (3 months) 1/3 ◆Total operating revenue after deducting financial expenses and cost of sales, and quarterly profit attributable to owners of the Company Total operating revenue after deducting financial expenses and cost of sales Quarterly profit attributable
Slide 50: Appendix: Highlights 2Q of FYE Mar. 2023 (3 months) 2/3
Appendix: Highlights 2Q of FYE Mar. 2023 (3 months) 2/3 ◆Total operating revenue after deducting financial expenses and cost of sales, and Segment profit (JPY Million) Total operating revenue after deducting financial expenses and cost of sales Segment profit (Quarterly profit before income taxes) 1
Slide 51: Appendix: Highlights 2Q of FYE Mar. 2023 (3 months) 3/3
Appendix: Highlights 2Q of FYE Mar. 2023 (3 months) 3/3 ◆Total operating revenue after deducting financial expenses, and Segment profit (JPY Million) Total operating revenue after deducting financial expense Segment profit (Quarterly profit before income taxes) 800 Asia Pacific 600 400 321 296 282 2
Slide 52: Investors' Guide
Investors’ Guide Shareholders distribution Shareholders & indicators per share ◆ Our basic policy for shareholders distribution ◆ Major shareholders and shareholder breakdown (as of Sep. 30, 2022) Our principle is to increase our corporate value in a sustainable way through Monex Group, Inc. 0.0% ba
Slide 53: Consolidated balance sheet
Consolidated balance sheet Key points of Monex Group’s consolidated balance sheet of Monex 1. Actual net debt is ¥11.4B for the holding company Monex Group, Inc., which does not engage in securities transactions, etc. 2. Trust assets, which are segregated deposits received from customers and guarant
Slide 54: Corporate Governance
Corporate Governance Established global-standard corporate governance practices and emphasis on dialogue with retail/institutional investors. Monex Group shifted to the new listing category of Tokyo Stock Exchange, "Prime Market" on Apr. 4, 2022. Adoption of “company with three committees” structure
Slide 55: Overview of Monex Group and Main Subsidiaries
Overview of Monex Group and Main Subsidiaries ■ Monex, Inc. (Tokyo, Japan) ■ Coincheck, Inc. (Tokyo, Japan) One of the major online brokerage firms in Japan Crypto asset Exchange/Marketplace agency • President : Yuko Seimei • President: Satoshi Hasuo • Founded in 1999 • Founded in 2012, joined Monex
Slide 56: Group Overview of the Group
Group Overview of the Group Listed Holding Company [ Japan Segment ] [ US Segment ] [ Crypto Asset Segment ] Online Brokerage Asset Management Crypto Asset Exchange Agency Monex, Inc. Monex Asset Management, Inc. TradeStation Group, Inc. Comprehensive investment service provider Small-lot and low-co
Slide 57: Group Overview - Revenues, Costs, and Employees
Group Overview - Revenues, Costs, and Employees Five Segments Contribution in FYE Mar. 2022 ■ Japan Segment Total operating revenue Selling, general and ■ US Segment after deducting financial expenses administrative expenses ■ Crypto Asset Segment 1% 1% 2% 0% ■ Asia Pacific Segment 20% ■ Investment
Slide 58: Appendix: Valuation in Fair Value of Monex Group
Appendix: Valuation in Fair Value of Monex Group Data for the valuation of fair value based on the Sum-of-the-Parts method Calculated by adding up the fair value of the subsidiaries using the sum-of-the-parts method. Target subsidiaries are Monex, Inc., Coincheck, TradeStation Group, Monex Asset Man
Slide 59: Investment Segment – Portfolio 1/3
Investment Segment – Portfolio 1/3 ◆ Monex Ventures, Inc. ◆ MONEX EDISON Investment Limited Partnership 58
Slide 60: Investment Segment – Portfolio 2/3
Investment Segment – Portfolio 2/3 ◆ MV I Investment Limited Partnership 59
Slide 61: Investment Segment – Portfolio 3/3
Investment Segment – Portfolio 3/3 ◆ MV I Investment Limited Partnership ◆ MV II Investment Limited Partnership 60
Slide 62: Disclaimer
Disclaimer About Coincheck Important Information About the Business Combination and Where to Find It In connection with the proposed business combination in connection with to the business combination agreement among Coincheck, Inc. (“Coincheck”), Coincheck Group B.V. (“CCG”), Thunder Bridge Capital
Slide 63: © Monex Group, Inc.
© Monex Group, Inc. www.monexgroup.jp/