Sparx Group Co., Ltd. · TSE:8739

Sparx — SPARX Asset Management — Q1 2004 Earnings Presentation

29 slides from Sparx's earnings presentation, Aug 6, 2004

  1. Slide 1: SPARX Asset Management Co., Ltd.

    SPARX Asset Management Co., Ltd. © 2004 SPARX Asset Management Co., Ltd. 1

  2. Slide 2: © 2004 SPARX Asset Management Co., Ltd.

    © 2004 SPARX Asset Management Co., Ltd. 2

  3. Slide 3: © 2004 SPARX Asset Management Co., Ltd.

    © 2004 SPARX Asset Management Co., Ltd. 3

  4. Slide 4: © 2004 SPARX Asset Management Co., Ltd.

    © 2004 SPARX Asset Management Co., Ltd. 4

  5. Slide 5: AUM

    1 2004 3 2005 3 1 1 (AUM) 3,761 4,597 7,126 +89.5% 1,061 11,117 2,980 +180.9% 895 4,429 1,337 +49.3% 165 6,687 1,643 +892.2% 170 6,678 1,645 +866.7% 112 3,380 892 +694.9% 99 101 115 +16.1% 903 1,179 1189 +31.7% 1 2 2 2005 3 1 3 © 2004 SPARX Asset Management Co., Ltd. 5

  6. Slide 6: AUM

    2004 3 2005 3 1 1 964 4,753 1,782 +84.7% 0.92 0.89 0.85 -0.07% 862 4,107 1,516 +75.8% 12 6,118 1,122 +9,029.1% AUM 67 58 56 -10.0 84 244 76 -9.2% 1,061 11,117 2,980 +180.9% 1 3 2 2 3 2005 3 1 2004 6 © 2004 SPARX Asset Management Co., Ltd. 6

  7. Slide 7: © 2004 SPARX Asset Management Co., Ltd.

    2004 3 2005 3 1 1 102 804 231 125.5 22 78 22 1.9 43 214 71 63.7 456 1,960 542 19.0 100 - 200 100.0 33 229 79 137.9 74 290 88 20.0 34 217 136 297.3 40 167 36 -8.4 88 467 125 42.5 895 4,429 1,337 +49.3% 1 2 2 © 2004 SPARX Asset Management Co., Ltd. 7

  8. Slide 8: © 2004 SPARX Asset Management Co., Ltd.

    2004 2004 66 114 114 33 99 99 +15 +15 2004 3 5 28 16 9 9 5 4 2 78 (+2) (+4) +1 -1 (+1) (+1) 0 0 8 3 0 0 0 0 11 -1 (+1) 0 3 6 4 3 3 2 0 21 (+1) (+2) 0 0 2 1 1 0 0 0 4 (+2) (+1) (+1) 5 31 32 17 13 8 6 2 114 © 2004 SPARX Asset Management Co., Ltd. 8

  9. Slide 9: AUM

    2004 3 2005 3 AUM 4,597 7,126 0.89 0.85 4,091 6,057 2,871 3,350 1,219 2,707 97 108 2005 3 1 © 2004 SPARX Asset Management Co., Ltd. 9

  10. Slide 10: © 2004 SPARX Asset Management Co., Ltd.

    2004 3 6 2004.3 6,028 1,533 -334 1,199 6 1 750 344 2004.6 7,572 -1,000 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 : 2004 3 2004 6 2,211 570 190 380 88 2,679 346 54 0 54 6 407 161 2 2 0 164 1,608 596 42 553 72 2,235 1,246 211 95 116 99 1,462 388 97 97 79 564 66 0 6 -6 -2 57 6,028 1,533 3

  11. Slide 11: © 2004 SPARX Asset Management Co., Ltd.

    2003 2003 2003 2004 2004 6 6 9 12 3 1,775 1,826 1,909 2,211 2,679 35.4% +51.0% 265 307 291 346 407 5.4% +53.6% 158 153 162 161 164 2.2% +4.0% 816 1,053 1,162 1,608 2,235 29.5% +173.7% 578 818 920 1,246 1,462 19.3% +152.9% 254 384 373 388 564 7.5% +121.9% 20 20 65 66 57 0.7% +184.9% 3,868 4,563 4,885

  12. Slide 12: © 2004 SPARX Asset Management Co., Ltd.

    8000 7000 6000 5000 4000 3000 2000 1000 0 © 2004 SPARX Asset Management Co., Ltd. 12

  13. Slide 13: AUM

    2003/6 2003/9 2004/3 2004/6 AUM 3,868 4,563 6,028 7,572 +95.8% 47.6 46.4 40.3 41.5 -6.1% 52.4 53.6 59.7 58.5 +6.1% 2,804 3,374 4,690 5,599 +99.7% 72.5 74.0 77.8 73.9 +1.4% 4 5 6 6 +37.9% 0.1 0.1 0.1 0.1 0% 290 256 282 673 +131.7% 7.5 5.6 4.6 8.9 +1.4% 768 926 1049 1,292 +68.2% 19.9 20.3 17.4 17.1 -2

  14. Slide 14: © 2004 SPARX Asset Management Co., Ltd.

    2004 6 45% 40% 38.2% 35% 30% 25% 21.9% 20.3% 20% 18.1% 15% 10% 5% 1.6% 0% 1 3 4 6 7 9 10 12 © 2004 SPARX Asset Management Co., Ltd. 14

  15. Slide 15: TOPIX

    2004 3 2005 3 1 1 3,761 4,597 7,126 +89.5% 6 4,601 1,046 - 326 0 - 96 1 5 60 66 - 21 7 - 1,012 - 12 6,118 1,122 +9,020.1% 14.6 49.6 0.9 TOPIX (788 903) (788 1,179) (1,179 1,189) 1 2 1 3 6 3 3 2 © 2004 SPARX Asset Management Co., Ltd. 15

  16. Slide 16: Comparison with the Mercer Japanese Equity Universe

    Comparison with the Mercer Japanese Equity Universe Performance before fees for periods ended March 2004 Rates of Return(%) 75 54 33 12 -9 3 Months (%) 1 Year (%) 2 Years (%pa) 3 Years (%pa) 5 Years (%pa) SPARX 17.6 (3) 74.1 (1) 14.6 (3) 10.0 (1) 14.0 (1) 12.0 (50) 56.7 (19) 8.5 (28) -0.8 (37) 2.5 (

  17. Slide 17: TOPIX

    2004 6 16.7 16.0 22.6 7.6 10.6 71.1 -1.8 8.4 1.1 -5.0 -2.5 33.4 18.5 7.6 21.5 12.6 13.1 37.7 TOPIX JASDAQ TOPIX TOPIX TOPIX TOPIX 97 5 97 4 97 8 2000 6 99 7 2003 2 26.2% 27.4% 12.9% 6.6% 26.0% n.a. © 2004 SPARX Asset Management Co., Ltd. 17

  18. Slide 18: SPARX Overseas, Ltd. SPARX Investment & Research, USA, Inc.

    100 SPARX Overseas, Ltd. SPARX Investment & Research, USA, Inc. ( Lev2) ( Lev1) 5 2000 3 2001 3 2002 3 2003 3 2004 3 93.34 -25.25 -0.22 -25.58 78.06 104.83 -34.98 -10.21 -16.85 69.66 / Lev2 50.95 -4.20 9.68 -6.41 37.92 / Lev1 2.02 (10 ) 7.09 -7.30 29.30 44.68 (9 ) -11.66 -9.65 -10.51 53.23 VCI GIPS

  19. Slide 19: © 2004 SPARX Asset Management Co., Ltd.

    © 2004 SPARX Asset Management Co., Ltd. 19

  20. Slide 20: Confidential © 2004 SPARX Asset Management Co., Ltd.

    Confidential – 1989 12 (2004/08/03): 11,140 (2003/04/25): 7,699 (1989/12/29): 38,915 - 63% 32 + 56% 11 + 51% 1994 6 1996 6 21 2000 4 + 62% 18 +46% 15 - 33% 12 1992 8 1995 7 - 43% 27 1998 10 - 63% 36 2003 4 © 2004 SPARX Asset Management Co., Ltd. 20

  21. Slide 21: © 2004 SPARX Asset Management Co., Ltd.

    (2004/08/03): 11,140 (2003/04/28): 7,608 - 63% (2000/04/12): 20,833 36 + 46% 15 © 2004 SPARX Asset Management Co., Ltd. 21

  22. Slide 22: TOPIX

    TOPIX 3,000 TOPIX 2,500 1 2 3 4 2,000 1,500 1,000 500 90 92 94 96 98 00 02 04 CY (Trillion Yen) 8 7.0 7.2 7 6.0 6 4.9 4.8 5 4.6 3.7 4 3.4 3.0 2.7 3 2.5 2 1 0.3 0.1 0.2 - FY90 92 94 96 98 00 02 © 2004 SPARX Asset Management Co., Ltd. 2004 3 2004 7 22

  23. Slide 23: G5 PER

    G5 PER 12 (x) 80 Japan (TOPIX) US (S & P 500 500) 70 France (CAC4040) Germany (DAX) 100 UK (FTSE100) 60 50 40 30 20 10 0 1987 1990 1993 1996 1999 2002 2004 5 © 2004 SPARX Asset Management Co., Ltd. 23

  24. Slide 24: PBR

    PBR PBR (x) 6 MSCI North America 5 MSCI Europe MSCI Pacific ex JP MSCI Japan 4 3 2 1 0 1988 1990 1992 1994 1996 1998 2000 2002 2004 Source: Morgan Stanley, As of March 2004 © 2004 SPARX Asset Management Co., Ltd. 24

  25. Slide 25: Shareholders Crossholders

    (%) 80 75 77 70 Shareholders 65 60 55 50 45 40 Crossholders 35 30 25 23 20 86 88 90 92 94 96 98 00 02e © 2004 SPARX Asset Management Co., Ltd. 25

  26. Slide 26: © 2004 SPARX Asset Management Co., Ltd.

    & © 2004 SPARX Asset Management Co., Ltd. 26

  27. Slide 27: Global GDP Breakdown for 2002 and 2008

    Global GDP Breakdown for 2002* Estimated Global GDP Breakdown for 2008* GDP as of 2002 %Total GDP as of 2008 %Total (Trillion $) (Trillion $) Asia 15.6 32.8% Asia 20.8 36.9% Japan 3.6 7.5% Asia ex.Japan 12.0 25.3 North America 13.8 24.5% North Europe 11.9 21.1% 11.9 25.2% America South America 2.8 5

  28. Slide 28: Market Cap Breakdown by Region

    Market Cap as of December 22, 2003* Expected Market Cap in 2008* Market Cap %Total (Billion $) Asia* 6,275 21.1% Japan 3,200 10.7% Asia ex. Japan 3,075 10.3% North America 14,083 47.3% Europe 8,080 27.1% South 1,303 4.4% America Africa 212 0.7% Other 171 0.6% Total 29,782 100.0% *Includes Japan, Hon

  29. Slide 29: Essence of SPARX Business

    Essence of SPARX Business Contents Delivery Channel Clients / Contents Asia Contents Package Delivery © 2004 SPARX Asset Management Co., Ltd. 29

SPARX Asset Management — Q1 2004 Earnings Presentation on 6ix