Slide 1: FYE 03/2003 Financial Results
FYE 03/2003 Financial Results April 21, 2003 Forward-looking Statements Statements made at this presentation and in this material include forward-looking statements that are based on our current expectations, assumptions, estimates and projections about our business and the industry. These forward-l
Slide 2: I. Financial Results, II. Other Business, III. Business Model and Future Development
I. Financial Results II. Other Business III.Business Model and Future Development 1
Slide 3: FYE 03/2003 Financial Summary
FYE 03/2003 Financial Summary （in million yen） ） FYE 03/2002 FYE 03/2003 Change Operating Revenue 3,281 2,766 - 15.7% Net Operating Revenue 3,280 2,712 - 17.3% SG&A 4,516 4,477 - 0.9% Operating loss 1,236 1,765 - Ordinary Loss 1,200 1,758 - Net Loss 1,406 2,046 - （in million yen） ） FYE 03/2002 FYE 0
Slide 4: FYE 03/2003 Financial Summary (Quarterly)
FYE 03/2003 Financial Summary （in million yen） ） FYE 03/03 FYE 03/03 Change 3rd Quarter 4th Quarter Operating Revenue 608 705 15.9% Net Operating Revenue 601 658 9.6% SG&A 1,099 1,093 - 0.5% Operating loss 497 434 - Ordinary Loss 497 432 - Quarter Net Loss 509 677 - （Oct – Dec 02） ） （Jan – Mar 03） ）
Slide 5: Operating Revenue vs. SG&A
Operating Revenue vs. SG&A ） (in million yen） 1,182 1,217 1,142 1,148 1,136 1,099 1,093 1,015 Operating 974 923 891 Revenue 848 SG&A 942 850 811 748 752 764 779 794 705 647 641 608 FYE 03/2001 2Q 3Q 4Q FYE 03/2002 2Q 3Q 4Q FYE 03/2003 2Q 3Q 4Q 1Q 1Q 1Q Operating Revenue breakdown 100% = 705 (million
Slide 6: Break-even Analysis Spreadsheet
Break-even Analysis Spreadsheet 1. Divide major items of SG & A into 2 categories (1) Variable (trade volume or number of accounts base) and (2) Fixed. After excluding one-time expenses, Outsourcing Expenses are divided into three categories. (unit: million yen） FYE March 2001 FYE March 2002 FYE Mar
Slide 7: Break-even Analysis – Number of Trades
Break-even Analysis – Number of Trades FYE 03/2003 4Q 2,500 1000 862 822 867 788 805 •The start of margin trading Number of trades (thousand) 791 753 2,000 788 800 was accompanied by an 839 Costs (in million yen) 612 increase in lease costs; however, 601 577 777 770 778 778 564 732 745 total increas
Slide 8: TSE individual trading volume vs. Monex trading volume
TSE individual trading volume vs. Monex trading volume TSE indivual trading volume vs. Monex trading volume at TSE(Index: as of 04/2000 = 100) 400 4.4% With the start of margin trading the 300 share has recovered. 3.3% The relative in Trading Volume Index crease of the m Monex Share transaction ha a
Slide 9: I. Financial Results, II. Other Business, III. Business Model and Future Development
I. Financial Results II. Other Business III. Business Model and Future Development 8
Slide 10: Number of Customers' Accounts
Number of Customers’ Accounts Number of Customers' Accounts Number of Margin Accounts 300,000 30,000 Monex DLJ 25,000 250,000 Matsui E*Trade 200,000 20,000 150,000 15,000 100,000 10,000 50,000 5,000 0 0 2 2 02 02 03 2 3 2 02 2 03 -02 2 00 01 02 r -0 00 01 02 00 01 01 02 02 03 l- 0 0 1 2 -0 v-0 -0 t-
Slide 11: Account Acquisition Costs
Account Acquisition Costs Newly acquired accounts 25,000 20,000 15,000 FYE 03/2003 4Q 10,000 5,000 ・The growth in customers’ accounts has slowed. 0 Advertising Costs (Yen thousand) 50,000 ・Because of the start of new services such as margin 40,000 trading/stock lending service, 30,000 advertising co
Slide 12: Customers' Assets in Custody
Customers’ Assets in Custody Nikkei 225 Average Index ¥16,000 ¥12,000 ¥8,000 447.0 458.9 418.4 428.8 402.1 408.1 404.5 in billion yen 374.5 76.1 72.0 64.4 64.2 63.4 31.9 64.0 64.7 31.0 66.0 31.4 31.8 291.9 30.3 31.2 29.8 28.7 55.5 130 318.5 334.1 349.0 326.6 274.5 303.1 304.4 298.9 MRF (quasi 222.6
Slide 13: Investment Trusts Business
Investment Trusts Business Investment Trusts Outstanding and Number of Order/Day 700 1,200 600 949 983 969 Outstanding ( in billion yen ) 879 889 839 833 500 760 792 773 788 794 730 771 742 717 681 715 717 Orders/Day 646 643 400 31.0 316 329 319 32.0 32.0 318 314 319 31.2 31.3 29.9 29.8 600 470 30.5
Slide 14: Underwriting Business
Underwriting Business Number of underwriting issues Underwriting amount (hundred million yen) 27 9 7 6 5 Monex 315 435 395 265 1,410 Monex share 24 9 5 7 3 E*trade 104 411 259 36 811 27 companies FYE 2003 21.8% １Q 263 ２Q Total Number of IPO's 21 5 6 7 3 DLJ 125 396 103 887 ３Q 11 22 ４Q 124 companies
Slide 15: I. Financial Results, II. Other Business, III. Business Model and Future Development
I. Financial Results II. Other Business III. Business Model and Future Development 14
Slide 16: Firm Value Concept
Firm Value Concept We Wecontinue continuefocusing focusingon on the theincrease increaseofofE2, E2,furthermore furthermorewe wepursue pursuenew newprofit profitopportunities. opportunities. × E1＋ P× Re = P× × E2 – Expenses Expected Probability Our Probability of Our Return of shift to earnings earni
Slide 17: Growth Strategy Concept
Growth Strategy Concept Increase Increaserevenue revenueby byacquiring acquiringnew newcustomers customersas aswell wellas asretaining retaininghighly highlyactive activecustomers customers Dispersion of customers Customers’ from Monex to the others activity shall halt, consequently, as Aim at keepi
Slide 18: Strategic Line-up of Products and Services
Strategic line-up of Products and Services Provide Provideproducts productsand andservices serviceswhich whichshall shallcomply complywith withvarious variouscustomer customerneeds. needs. Existing products and services New products and services 【Margin trading 】 【Provide Long-short trading tool】 】
Slide 19: Stock Lending Service
Stock Lending Service Expand Expandthe theportfolio portfoliototoassure assurestable stablerevenue revenuesource sourceand andtoto improve improvethe theefficiency efficiencytotoraise raisefunds funds 1．．Provide customers with a unique service; ●Customers may receive stable income, by lending out th
Slide 20: Margin Trading
Margin Trading Number Numberofofmargin margintrades tradeshas hasbeen beengrowing: growing:ititaccounts accountsfor for23% 23%ofofthe thetotal totaltrades. trades. Margin accounts 4,117 Trends in Number of trades (as of 10/1/ 2002 = 100 moving average of 5 BD) 3,484 180 Total number of trades 160 Ca
Slide 21: Establishment of Strategic Business Division
Establishment of Strategic Business Division Utilize Utilizelatent latentresources; resources;obtain obtainanother anotherincome incomesource-not source-notdirectly directlyaffected affectedby bythe thestock stockmarket market Objectives MONEX 1. Diversify income source Monex DNA = Actualize better
Slide 22: Management Agenda for FYE March 2004
Management Agenda for FYE March 2004 ： Recognition on present condition： Recognizing that the stagnant stock market may continue and structural changes may not occur for the time being, due to continuous deflationary tendency with the bad debt problems, credit crunch caused by world situation, geopo
Slide 23: http://www.monex.co.jp/
MONEX http://www.monex.co,jp/