Slide 1: Databook: Financial Results for Fiscal Year Ending March 31, 2019
April 25, 2019 (TSE 1st Section: 8698) DATABOOK Financial Results for 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 the c
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.37 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 Crypto Asset 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 Mar.31, 2017 Jun.30, 2017 Sep.30, 2017
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 Mar.31, 2017 Jun.30, 2017 Sep.30, 2017 Dec.31, 2017 Mar.31, 2018 Jun.30, 2018 Sep.30, 2018 Dec.30, 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 Mar. 31, As of Jun. 30, As of Sep. 30, As of Dec. 31, As of Mar. 31, As of Jun. 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 (JPY 100million) its equity trading values (%) Cash
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) Sales of Investment Trusts(no-load) (left) (JPY million) (JPY million) Sales of Investment Trusts(load) (left) 20,
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) 1,500 200,000 FX revenue(left) Trading value (right) 150,000 1,000 100,000 500 50,000 0 0 4Q of FYE 1Q of FYE 2Q of FYE 3Q of FYE 4Q of FYE 1Q of FYE 2Q of FYE 3Q of FYE 4Q of FYE Mar. 20
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 30 Futures DARTs(left) Options DARTs(left) 80,000 Equities DARTs(left) Vix Close Avg. (right) 70,000 100 20 60,000 50,000 40,000 50 10 30,000 20,000 10,000 0 0
Slide 13: Market and Transaction Data (10) Asia-Pacific Segment
Market and Transaction Data (10) Asia-Pacific Segment Monex Boom Securities+Monex Securities Australia ◆ 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 4Q of FYE 1Q of FYE 2Q of FYE 3Q of FYE 4Q of FYE 1Q of FYE 2Q of FYE 3Q of
Slide 14: 2. Financial Data
1. Market & Transaction Data 2. Financial Data 13
Slide 15: Introduction
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) FYE Mar. FYE Mar. Variance Change 2018 2019 Commission received 29,196 25,741 -3,455 -11.8% Net trading income 3,865 6,461 2,596 67.2% Financial income 19,349 19,242 -107 -0.6% Other operating income 1,225 731 -495 -40.4% Total operating revenue 53,635 52
Slide 17: Consolidated financial results (Reclassified)
Consolidated financial results (Reclassified) Reclassified consolidated statement of income (JPY million) FYE Mar. 2018 FYE Mar. 2019 Variance Change Brokerage commissions 22,540 19,463 -3,077 -13.6% Stocks and ETFs 15,974 12,610 -3,364 -21.1% Options and Futures 6,566 6,851 284 4.3% 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) FYE Mar. 2018 FYE Mar. 2019 Variance Change Transaction-related expenses 11,963 12,051 88 0.7% Commissions paid 4,125 4,609 484 11.7% Exchange and association dues 897 765 -132 -14.7% Communic
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 2Q 3Q 4Q Brokerage commissions 5,247 5,217 5,928 6,147 5,134 4,720 5,332 4,278 Stocks and ETFs 3,736 3,705 4,391 4,142 3,364 3,130 3,399 2,71
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 2Q 3Q 4Q Transaction-related expenses 3,000 2,765 2,987 3,211 3,157 2,810 3,000 3,085 Commissions paid 981 962 1,017 1,165 1,255 1,054 1,24
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 2Q 3Q 4Q Other financial income 336 -60 -25 47 140 187 284 541 Gain on valuation of investments in securities - - - - 34 21 -31 13 Gain on sales of investments in secur
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 3Q 4Q 1Q 2Q 3Q 4Q JPN US AP JPN US AP JPN US AP JPN US AP JPN US AP JPN US AP Brokerage commissions 3,965 1,871 131 3,565 2,477 153 2,858
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 3Q 4Q 1Q 2Q 3Q 4Q Crypto Crypto Crypto Crypto Crypto Crypto Investment Investment Investment Investment Investment Investment Ass
Slide 24: Quarterly financial results by segment (SG&A)(Japan, the US and 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 3Q 4Q 1Q 2Q 3Q 4Q JPN US AP JPN US AP JPN US AP JPN US AP JPN US AP JPN US AP Transaction-related expenses 1,553 1,412 67 1,640 1,539 78
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 3Q 4Q 1Q 2Q 3Q 4Q Crypto Crypto Crypto Crypto Crypto Crypto Investment Investment Investment Investment Investment Investment A
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 3Q 4Q 1Q 2Q 3Q 4Q JPN US AP JPN US AP JPN US AP JPN US AP JPN US AP JPN US AP Gain on valuation of investments in securities - - - - - - 34 - - 21 - -
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 3Q 4Q 1Q 2Q 3Q 4Q Crypto Invest Crypto Invest Crypto Invest Crypto Invest Crypto Invest Crypto Invest Asset ment Asset ment Asset ment Asset m
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 2Q 3Q 4Q Brokerage commissions 17,067 16,579 16,584 22,826 20,377 17,834 21,099 18,100 Stocks and ETFs 4,255 3,635 3,785 5,242 4,731 4,258 4,813
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 2Q 3Q 4Q Transaction-related expenses 15,538 12,259 12,502 14,261 14,849 12,997 13,649 13,822 Commissions paid 6,283 5,934 5,968 7,472 7,929 6,
Slide 30: Financial results by consolidated and segment
Financial results by consolidated and segment (JPY million) FYE Mar. 2018 FYE Mar. 2019 Variance Cons. * JPN US AP Cons. JPN US AP Cons. JPN US AP Commission received 29,196 16,968 11,858 557 25,741 13,301 12,014 406 -3,455 -3,667 156 -151 Net trading income 3,865 3,865 - 0 6,461 4,535 - -3 2,596 67
Slide 31: Financial results by consolidated and segment
Financial results by consolidated and segment (JPY million) FYE Mar. 2018 FYE Mar. 2019 Variance Crypto Asset Investment Crypto Asset Investment Crypto Asset Investment Commission received - - 186 - 186 - Net trading income - - 1,929 - 1,929 - Financial income - 2,772 - 414 - -2,357 Sales - - - - -
Slide 32: Financial results by consolidated and segment (Reclassified)
Financial results by consolidated and segment(Reclassified) (JPY million) FYE Mar. 2018 FYE Mar. 2019 Variance Cons. JPN US AP Cons. JPN US AP Cons. JPN US AP Brokerage commissions 22,540 14,082 8,091 554 19,463 10,650 8,573 404 -3,077 -3,432 481 -150 Stocks and ETFs 15,974 13,733 1,874 554 12,610 1
Slide 33: Financial results by consolidated and segment (Reclassified)
Financial results by consolidated and segment(Reclassified) (JPY million) FYE Mar. 2018 FYE Mar. 2019 Variance Crypto Asset Investment Crypto Asset Investment Crypto Asset Investment Brokerage commissions - - 3 - 3 - Stocks and ETFs - - - - - - Options and Futures - - - - - - Cryptocurrency - - 3 -
Slide 34: Financial results by consolidated and segment (SG&A)
Financial results by consolidated and segment(SG&A) (JPY million) FYE Mar. 2018 FYE Mar. 2019 Variance Cons. JPN US AP Cons. JPN US AP Cons. JPN US AP Transaction-related expenses 11,963 5,787 6,043 332 12,051 5,135 6,126 268 88 -652 83 -64 Commissions paid 4,125 1,398 2,842 85 4,609 1,414 3,129 43
Slide 35: Financial results by consolidated and segment (SG&A)
Financial results by consolidated and segment(SG&A) (JPY million) FYE Mar. 2018 FYE Mar. 2019 Variance Crypto Asset Investment Crypto Asset Investment Crypto Asset Investment Transaction-related expenses - 11 709 5 709 -6 Commissions paid - 9 213 2 213 -7 Exchange and association dues - - - - - - Co
Slide 36: Consolidated statement of financial position (1) Assets
Consolidated statement of financial position (1) ■Assets (JPY million) As of As of As of As of Mar. 31, 2018 Mar. 31, 2019 Mar. 31, 2018 Mar. 31, 2019 Cash and cash equivalents 83,884 154,146 Property and equipment 2,122 2,456 Cash segregated as deposits 543,438 566,220 Intangible assets 49,851 47,6
Slide 37: Consolidated statement of financial position (2) Liabilities, Equity
Consolidated statement of financial position (2) ■Liabilities ■Equity (JPY million) As of As of As of As of Mar. 31, 2018 Mar. 31, 2019 Mar. 31, 2018 Mar. 31, 2019 Derivative liabilities 5,340 4,312 Common stock 10,394 10,394 Margin transaction liabilities 29,683 32,793 Additional-paid in capital 40
Slide 38: Consolidated statement of financial position (3) Investments in securities
Consolidated statement of financial position (3) ■Investments in securities (JPY million) As of As of measurement method Description Mar. 31, 2018 Mar. 31, 2019 Investments in securities 3,123 3,913 Fair Value Through Profit or Loss (FVTPL) Quoted prices (unadjusted) in active markets for identical