Slide 1: Databook: Financial Results for 3Q of Fiscal Year Ending March 31, 2016
January 28, 2016 (TSE 1st Section: 8698) DATABOOK Financial Results for 3Q of Fiscal Year Ending March 31, 2016 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 fr
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.30 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 China Segment 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 Dec.31, 2013 Mar.31, 2014 Jun.30, 2014 Sep.30, 2014 Dec.31, 2014 Mar.31, 201
Slide 5: Market and Transaction Data (2) – Number of Employees
Market and Transaction Data (2) – Number of Employees (person） Japan Segment U.S. Segment China Segment 1,200 800 400 0 As of As of As of As of As of As of As of As of As of Dec.31, 2013 Mar.31, 2014 Jun.30, 2014 Sep.30, 2014 Dec.31, 2014 Mar.31, 2015 Jun.30, 2015 Sep.30, 2015 Dec.31, 2015 (person）
Slide 6: Market and Transaction Data (3) – Japan Segment - Monex, Inc. (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 1,600,000 1,400,000 1,200,000 1,000,000 800,000 600,000 400,000 200,000 0 As of Dec. 31, As of Mar. 31, As of Jun. 30, As of Sep. 30
Slide 7: Market and Transaction Data (4) Japan Segment - Monex, Inc. (Equities and ETFs)
Market and Transaction Data (4) Japan Segment - Monex, Inc. (Equities and ETFs ) ◆Market share and value of equity trading ◆ Breakdown of DARTs and market trading value Monex’s share in retail trading value of 2 major stock exchanges and Futures and Options DARTs (left) (JPY 100million) its equity t
Slide 8: Market and Transaction Data (5) Japan Segment - Monex, Inc. (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) 70,000 Sales of Investment Trusts(load) (le
Slide 9: Market and Transaction Data (6) Japan Segment – Monex, Inc. (Customer distribution)
Market and Transaction Data (6) 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 10: Market and Transaction Data (7) Japan Segment - Monex, Inc. (Capital Adequacy Ratio)
Market and Transaction Data (7) 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 11: Market and Transaction Data (8) U.S. Segment – TradeStation Group
Market and Transaction Data (8) U.S. Segment – TradeStation Group ◆ DARTs and VIX(*) （thousand） 150 Futures DARTs(left) Options DARTs(left) Equities DARTs(left) Vix Close Avg. (right) 30 100 20 50 10 0 0 3Q of FYE 4Q of FYE 1Q of FYE 2Q of FYE 3Q of FYE 4Q of FYE 1Q of FYE 2Q of FYE 3Q of FYE Mar. 2
Slide 12: Market and Transaction Data (9) China Segment - Monex Boom Securities
Market and Transaction Data (9) China Segment - Monex Boom Securities ◆ Numbers of accounts with balances ◆ DARTs (account) 2,000 12,000 10,000 1,500 8,000 1,000 6,000 4,000 500 2,000 0 0 As of Dec. As of Mar. As of Jun. As of Sep. As of Dec. As of Mar. As of Jun. As of Sep. As of Dec. 3Q of FYE 4Q
Slide 13: Market and Transaction Data (10) Global FX
Market and Transaction Data (10) Global FX ◆OTC FX business in Japan (Monex, Inc. and Monex FX, Inc.) ◆OTC FX business in U.S. (TradeStation Group) (JPY million) (JPY 100million) (USD thousand) （100mil USD） 1,500 200,000 6,000 1,000 Commissions(left) Trading revenue(left) Trading revenue(left) Tradi
Slide 14: 2. Financial Data
1. Market & Transaction Data 2. Financial Data 13
Slide 15: Introduction: Consolidated financial statements for 3Q FYE March 2016
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 China) with a view to creating a global online financial group ■ Consolidated fin
Slide 16: Consolidated financial results (9 months)
Consolidated financial results (9 months) (million yen) 3Q FYE Mar. 3Q FYE Mar. Variance Change 2015 2016 Commission received 21,837 24,717 2,880 13.2% Net trading income 4,388 5,179 791 18.0% Financial income 10,259 11,373 1,114 10.9% Other operating income 493 636 144 29.1% Total operating revenue
Slide 17: Consolidated financial results (Reclassified) 9 months
Consolidated financial results (Reclassified) 9 months Reclassified consolidated statement of income (million yen) 3Q FYE Mar. 2015 3Q FYE Mar. 2016 Variance Change Brokerage commissions 17,295 19,481 2,186 12.6% Stocks and ETFs 12,896 13,869 973 7.5% Options and Futures 4,378 5,612 1,234 28.2% OSE-
Slide 18: Consolidated financial results (SG&A) 9 months
Consolidated financial results (SG&A) 9 months The details of SG&A in consolidated statement of income (million yen) 3Q FYE Mar. 2015 3Q FYE Mar. 2016 Variance Change Transaction-related expenses 9,746 10,432 686 7.0% Commissions paid 3,697 4,111 414 11.2% Exchange and association dues 955 898 -57 -
Slide 19: Quarterly consolidated financial results
Quarterly consolidated financial results (JPY million) FYE Mar. 2015 FYE Mar. 2016 1Q 2Q 3Q 4Q 1Q 2Q 3Q Commission received 6,314 7,205 8,319 8,242 8,499 8,872 7,345 Net trading income 1,244 1,175 1,968 1,854 1,813 1,934 1,432 Financial income 3,115 3,471 3,673 3,729 3,670 3,753 3,950 Other operatin
Slide 20: Quarterly consolidated financial results (Reclassified)
Quarterly consolidated financial results (Reclassified) Reclassified consolidated statement of income (JPY million) FYE Mar. 2015 FYE Mar. 2016 1Q 2Q 3Q 4Q 1Q 2Q 3Q Brokerage commissions 4,906 5,710 6,679 6,527 6,769 7,061 5,651 Stocks and ETFs 3,627 4,352 4,917 4,688 4,974 4,940 3,956 Options and F
Slide 21: 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. 2015 FYE Mar. 2016 1Q 2Q 3Q 4Q 1Q 2Q 3Q Transaction-related expenses 3,006 3,220 3,520 3,490 3,522 3,544 3,365 Commissions paid 1,124 1,198 1,375 1,454 1,371 1,502 1,238 Exc
Slide 22: Quarterly consolidated financial results (Other income and other expenses)
Quarterly consolidated financial results (Other income and other expenses) (JPY million) FYE Mar. 2015 FYE Mar. 2016 1Q 2Q 3Q 4Q 1Q 2Q 3Q Other financial income 20 35 20 7 77 -50 979 Gain on sales of investment securities - - 1 -0 - - - Dividends income 16 34 11 5 15 5 5 Gain or loss on Financial in
Slide 23: Quarterly financial results by segment
Quarterly financial results by segment (JPY million) FYE Mar. 2015 FYE Mar. 2016 2Q 3Q 4Q 1Q 2Q 3Q JPN U.S. CHN JPN U.S. CHN JPN U.S. CHN JPN U.S. CHN JPN U.S. CHN JPN U.S. CHN Commission received 4,696 2,448 84 5,304 2,949 96 5,112 3,057 99 5,394 2,975 163 5,415 3,379 114 4,324 2,968 86 Net trading
Slide 24: Quarterly financial results by segment (Reclassified)
Quarterly financial results by segment (Reclassified) Reclassified statement of income (JPY million) FYE Mar. 2015 FYE Mar. 2016 2Q 3Q 4Q 1Q 2Q 3Q JPN U.S. CHN JPN U.S. CHN JPN U.S. CHN JPN U.S. CHN JPN U.S. CHN JPN U.S. CHN Brokerage commissions 3,910 1,735 84 4,438 2,173 96 4,205 2,250 99 4,488 2,
Slide 25: Quarterly financial results by segment (SG&A)
Quarterly financial results by segment (SG&A) The details of SG&A in statement of income (JPY million) FYE Mar. 2015 FYE Mar. 2016 2Q 3Q 4Q 1Q 2Q 3Q JPN U.S. CHN JPN U.S. CHN JPN U.S. CHN JPN U.S. CHN JPN U.S. CHN JPN U.S. CHN Transaction-related 1,486 1,717 41 1,573 1,928 52 1,680 1,783 56 1,656 1,
Slide 26: Quarterly financial results by segment (Other income and other expenses)
Quarterly financial results by segment (Other income and other expenses) (JPY million) FYE Mar. 2015 FYE Mar. 2016 ２Q ３Q ４Q 1Q 2Q 3Q JPN U.S. CHN JPN U.S. CHN JPN U.S. CHN JPN U.S. CHN JPN U.S. CHN JPN U.S. CHN Gain or loss on Financial - -238 - - 7 - - 133 - -138 195 - -112 -30 - 90 -3 - instrument
Slide 27: U.S. Segment: Quarterly financial results (Reclassified) (in USD)
U.S. Segment :Quarterly financial results (Reclassified) (in USD) Reclassified statement of income (USD thousand) FYE Mar. 2015 FYE Mar. 2016 1Q 2Q 3Q 4Q 1Q 2Q 3Q Brokerage commissions 15,954 16,552 19,051 19,174 17,714 20,168 17,244 Stocks and ETFs 4,624 4,699 5,198 4,886 4,356 4,580 4,393 Options
Slide 28: U.S. Segment: Quarterly financial results (SG&A) (in USD)
U.S. Segment :Quarterly financial results (SG&A) (in USD) The details of SG&A in statement of income (USD thousand) FYE Mar. 2015 FYE Mar. 2016 1Q 2Q 3Q 4Q 1Q 2Q 3Q Transaction-related expenses 14,970 16,397 16,816 15,015 15,277 15,601 14,120 Commissions paid 8,320 8,614 9,409 9,174 8,626 9,632 7,65
Slide 29: Consolidated statement of financial position (1)
Consolidated statement of financial position (1) ■Assets (JPY million) As of As of As of As of Mar. 31, 2015 Dec. 31, 2015 Mar. 31, 2015 Dec. 31, 2015 Cash and cash equivalents 68,540 83,692 Property and equipment 2,408 2,463 Cash segregated as deposits 525,567 523,936 Intangible assets 48,807 53,08
Slide 30: Consolidated statement of financial position (2)
Consolidated statement of financial position (2) ■Liabilities ■Equity (JPY million) As of As of As of As of Mar. 31, 2015 Dec. 31, 2015 Mar. 31, 2015 Dec. 31, 2015 Derivative liabilities 12,159 9,815 Common stock 10,394 10,394 Margin transaction liabilities 46,125 28,260 Additional-paid in capital 4
Slide 31: Consolidated statement of financial position (3)
Consolidated statement of financial position (3) ■Investments in securities (JPY million) As of Mar. As of Dec. measurement method Description 31, 2015 31, 2015 Investments in securities 8,176 3,596 Fair Value Through Profit or Loss Quoted prices (unadjusted) in active markets for identical Akatsuki