Slide 1: Financial Results, Fiscal Year Ended March 31, 2005
Financial Results Fiscal Year Ended March 31, 2005 April 25, 2005 This is an English translation of Japanese presentation material prepared for IR conference held on the above date; it includes the information on consolidated financial summary under Japanese GAAP for FYE March 2005. If there is any
Slide 2: Table of Contents
Table of Contents 1. Financial Results and Business Overview 2. Business Model and Future Development Financial Summary FYE Mar. 31, 2004 vs. FYE Mar. 31, 2005 3 Mission Statements 21 3Q of FYE Mar. 31, 2005 vs. 4Q of FYE Mar. 31, 2005 4 Current and Future Business Models 22 Financial Highlights (Qu
Slide 3: 1. Financial Results and Business Overview
1. Financial Results and Business Overview 2. Business Model and Future Development 2
Slide 4: Financial Summary: FYE Mar. 2004 vs. FYE Mar. 2005
Financial Summary: FYE Mar. 31, 2004 vs. FYE Mar. 31, 2005 (in million yen, %) FYE Mar. 2004 FYE Mar. 2005 (Apr. 2003-Mar. 2004 (Apr. 2004-Mar. 2005) Change Operating Revenues 15,075 21,716 44.0% Net Operating Revenues 14,437 20,690 43.3% SG&A 8,960 11,424 27.5% Operating Income 5,477 9,266 69.2% Or
Slide 5: Financial Summary: 3Q vs. 4Q of FYE Mar. 2005
Financial Summary: 3Q of FYE Mar. 31, 2005 vs. 4Q of FYE Mar. 31, 2005 (in million yen, %) 3Q of FYE Mar. 2005 4Q of FYE Mar. 2005 (Oct. 2004-Dec. 2004) (Jan. 2005-Mar. 2005) Change Operating Revenues 4,887 6,533 33.7% Net Operating Revenues 4,596 6,340 37.9% SG&A 2,721 3,004 10.4% Operating Income
Slide 6: Financial Highlights (Quarterly Basis)
Financial Summary: Financial Highlights (Quarterly Basis) Net Operating Revenues Selling, General (in million yen) (in million yen) and Administrative Expenses 7,000 6,340 7,000 6,000 5,440 6,000 4,907 5,000 4,312 4,596 5,000 4,000 3,698 4,000 2,806 2,892 2,721 3,004 3,000 3,000 2,703 2,278 2,000 2,
Slide 7: Net Operating Revenues vs. Selling, General and Administrative Expenses
Financial Summary: Net Operating Revenues vs. Selling, General and Administrative Expenses Net Operating Revenues 724 274 468 291 1. The ratio of brokerage commission 389 470 revenues over net operating revenues FYE Mar. 2004: 79% FYE Mar. 2005: 74% 1,068 2,432 2. Revenues excluding brokerage commis
Slide 8: Comparison with Others: Retail Trading Value & Equity Brokerage Commissions
Comparison with Others: Retail Trading Value & Equity Brokerage Commissions Share of Trading Value in Domestic Market Equity Brokerage Commissions (%) (in million yen) 25 8,000 20 6,000 15 4,000 10 2,000 5 0 0 FYE MAR.2004 FYE MAR.2005 FYE MAR.2004 FYE MAR.2005 1 2 3 4 2 3 4 1 2 3 4 1 2 3 4 Monex Be
Slide 9: Reference: Individual Investors Trend
<Reference> Individual Investors Trend Trading Value Major Online Brokers The ratio of internet trading value has increased significantly since vs. Major Full-line Brokers March 2003. More than 80% of individual investors choose internet trading at present. The trading value of major online brokers
Slide 10: Comparison with Others: Financial Highlights (Quarterly Basis)
Comparison with Others: Financial Highlights (Quarterly Basis) Net Net Operating Operating Revenues Revenues Selling, Selling, General General and and Administrative Administrative Expenses Expenses (in million yen) (in million yen) 10,000 4,000 8,000 3,000 6,000 2,000 4,000 1,000 2,000 0 0 FYE Mar.
Slide 11: Brokerage Business: Expanding Customer Base with Steady Revenue Growth
Brokerage Business: Expanding Customer Base with Steady Revenue Growth Value-added services and products to meet customers’ needs 50% Commission Return Three Customer Categories Volume discount for highly active traders Very competitive commission table for active traders Large In-house Margin Tradi
Slide 12: Underwriting Business
Underwriting Business High Reputation from Investors and Corporations Environment Number of Companies and Established presence as “82 ” Market share of individual investors Participation Ratio an underwriter in the primary market (2004/1 12 42% 38% Source: Japan Securities Dealers Association 35% 73
Slide 13: Mutual Fund Business
Mutual Fund Business Front-runner Among Online Mutual Fund Distributors Customer’s Assets in Custody: Monthly Fund Auto-purchase has contributed to the steady growth of assets. Customer's Assets in Custody Monthly Fund Auto-purchase Number of Monthly Fund Auto-pruchase contract 21,223 From securitie
Slide 14: FX Business: Maintaining Strong Growth Trend
FX Business: Maintaining Strong Growth Trend “Number of Accounts” and “Margin Balance” are ranked top among FX business providers Competitive products Customers’ Profile Low cost, Leveraged Trading Investor FX familiarity shared by core customers Education Upgraded Services Customers understanding o
Slide 15: Fixed Income Business
Fixed Income Business: “Deposits” to “Securities Investments”, “JPY to “Multi Currencies” Removal of blanket guarantee of deposit and Low interest rate policy etc. Momentum of Japanese individual financial assets portfolio change Shift from “Deposits” to “Investments” Shift from “JPY to “Multi Curre
Slide 16: Alternative Investment Funds Business
Alternative Investment Funds Business: Monex Beans declares Y2005 as “the 1st year in alternative investment history in Japan” Monex Alternative Investments (MAI), Launch of “Fullerton* - Monex a gatekeeper company, introduce carefully selected funds with business professional expertise Asian Fund o
Slide 17: Original Services: Front-runner In Providing These Unique Services
Original Services: Front-runner In Providing These Unique Services! 3,000 names available on these services! Stock Night NightTime TimeTrading StockLending Lending Small SmallUnit UnitStocks Stocks Trading Automatic credit of The only PTS (Proprietary Up to 3,000 names expected “Dividends equival
Slide 18: Service Lineup: Providing Financial Paradise Through Our Internet
Service Lineup: Providing “Financial Paradise” Through Our Internet Beginners Email Daily Magazines/Trading report mails Active Traders Pioneer Monex Blog Chinese Stocks Volume Discount for Highly Active Traders (from May 2005) Pioneer Monex Saison Card Surfing Trading ATM Access at Open-ended Margi
Slide 19: New Services: The Merger To Fulfill All Users' Needs
New Services: The Merger To Fulfill All Users’ Needs! New services New services To Monex users! To Nikko Beans users! Stop loss order/Band limit order Night Time Trading Open-ended Margin Trading Stock Lending Commodity Futures Small Unit stocks “Market Rider Premium” Monex Saison Card “Market Walke
Slide 20: Investors Education
Investors Education Paradigm Change “The era of asset management with self responsibility” Monex Beans has always been emphasizing the importance of investors education. The reason is: Monex Beans believes Financial literacy shall support his/her asset management planning. “Beginner's luck will not
Slide 21: 2. Business Model and Future Development
1. Financial Results and Business Overview 2. Business Model and Future Development 20
Slide 22: Mission Statements
Mission Statements Take position as a total financial service provider, not just as an online brokerage firm Offer comprehensive products and service line-ups with “World-class Quality” Support passive investors to manage his/her financial assets efficiently Strengthen “Products Origination
Slide 23: Current and Future Business Models
Current and Future Business Models: Further Expansion of Revenue Potentiality Potentiality Present 1 year later 3 – 5 years later Brokerage -Expected further growth resulting from changes in national policies -Future cash inflow from banks, postal savings and other traditional securities firms -Rema
Slide 24: Acceleration of Alliances with Other Businesses
Acceleration of Alliances with Other Businesses Securities Intermediary Business Account Opening over the counters ATM Tie-ups Alliance ATM ATM Tie-up Tie-up with with Credit Credit Saison Saison Alliance with with Credit Credit Saison Saison Alliance Alliance with with IY IY Bank Bank August 28, 20
Slide 25: Full Line Services and Products For All Customers' Satisfaction
Full Line Services and Products For All Customers’ Satisfaction (As of April 20, 2005) Fixed Alternative Equities Mutual Fund Others Income Investments Stock In- Stop Night Small Lending JGB Monthly China/India Cash house China U.S. Low High Commodities Loss Time Unit /Foreign Auto- Equity FX Manage
Slide 26: Effects of Business Merger
Effects of Business Merger: The Maximization of the Potentiality as an Online Broker 1. Full-line services and products to expand customer base -Provide enhanced and various financial services -Cater highly valuable services comparable to major offline brokers “Monex Only” “Nikko Beans Only” Night T
Slide 27: Monex Beans Group Overview
Monex Beans Group Overview Major Shareholders* Business Partners Credit Saison Co.,Ltd Nikko Cordial Nikko Cordial Corporation 1.58% Corporation 29.83% The Master Trust Sony Corporation Bank of Japan,Ltd. 1.59% Sony Corporation Credit Saison Co.,Ltd 20.06% Internet Initiative Japan Inc. 2.43 Mizuho
Slide 28: Message to Shareholders
Message to Shareholders Higher Higher ROE ROE Cash Cash Dividends Dividends ROE(pretax) 33 Cash Dividends for this fiscal year JPY 500 / share (Subject to approval of annual shareholders’ meeting scheduled on Jun. 2005) ROE(after tax) 27 While the principle of Monex Beans is to increase higher (FYE
Slide 29: Monex Beans Holdings, Inc.
MBH Monex Beans Holdings, Inc.