Monex Group, Inc. · TSE:8698
Monex — Q2 FYE March 2025 Earnings Presentation
70 slides from Monex's earnings presentation, Oct 28, 2024
Slide 1: Financial Results for 2Q of Fiscal Year Ending March 31, 2025
TSE Prime : 8698 Monex Group Financial Results for 2Q of Fiscal Year Ending March 31, 2025 October 28, 2024
Slide 2: Corporate Philosophy
Corporate Philosophy Always a step ahead of the “Y” in “MONEY,” our name MONEX expresses our desire to embrace all people who are engaged at the forefront of our future. With state-of-the-art IT technology, globally universal values and a sense of professionalism, Monex Group designs innovative ways
Slide 3: Table of Contents
Corporate Philosophy p.1 Table of Contents p.2 Ⅰ. Highlights p.3 - p.15 Ⅱ. Consolidated Performance p.16 - p.38 Ⅲ. Business Update p.39 - p.55 Appendix: Group Overview p.56 -p.67 Disclaimer p.68 This is an English translation of Japanese presentation materials prepared in connection with the disclos
Slide 4: I. Highlights
MONEX GROUP I . Highlights
Slide 5: Commitment for FYE Mar. 2025
Commitment for FYE Mar. 2025 Commit to “growth investment” while pursuing each group company’s strategy. Aim for sustainable profit growth and increased corporate value through management that is more conscious of cost of capital and stock price. FYE Mar. 2024 FYE Mar. 2025 Done Commitment ✓Clarify
Slide 6: Business Expansion and Growth Investment
Business Expansion and Growth Investment Incorporating technological advances, the Company has created and expanded its businesses with proactive growth investments. It will keep promoting the investments to provide innovative values. Social Changes Spread of the Internet Emergence of Blockchain AI
Slide 7: Group Synergy Effect
Group Synergy Effect Strive to pursue synergies among group companies and create new value while building the optimal business portfolio. Business Portfolio Synergy Value Creation Growth Investment Create New Value by Fostering Group Synergy Asset Management Business × Existing Group Companies × × 6
Slide 8: Management conscious of cost of capital and stock price
Management that is conscious of cost of capital and stock price In light of the management that is conscious of cost of capital and stock price, the Company has formulated a disciplined capital management. ■ Summary • In addition to committing to growth investments for sustainable profit growth, the
Slide 9: Capital Management
Capital Management Strengthened the Company’s capital management with a focus on “management that is conscious of cost of capital and stock price,” targeting ROE of 15%. ■ Disciplined Capital Management 1. Promote growth investment and pursue sustainable profit growth. 2. ROE target is 15%. 3. The b
Slide 10: Growth Investment: Sustainable Profit Growth
Sustainable Profit Growth Aim for stable EPS* growth by pursuing leaping growth opportunities. Existing Businesses and Growth Investment Area Consolidated Performance Growth Investment Capital and Business Alliance with NTT DOCOMO EPS Decrease in short-term Turning cash profit contribution to profit
Slide 11: Consolidated Profit Attributable to Owners of the Company
Consolidated Profit Attributable to Owners of the Company Brokerage businesses generated stable profits. Quarterly profit attributable to owners of the Company decreased partially due to a decrease in trading value of the market place at Coincheck and the appreciation of the JPY against USD compared
Slide 12: Business Performance of the US Segment
Business Performance of the US Segment Transaction related revenue remained stable and interest income on cash deposits remained strong due to an elevated interest rate environment. Under the strategy of focusing on active traders, TradeStation has maintained stable profits. Quarterly Revenue of the
Slide 13: Business Performance of the Crypto Asset Segment
Business Performance of the Crypto Asset Segment Revenue decreased as marketplace trading volume decreased and IEO related revenue has been excluded from this quarter. Fixed costs were maintained at appropriate levels while professional fees related to De-SPAC listing project increased. Quarterly Re
Slide 14: Reference: Business Performance of Monex Securities (JGAAP)
Reference: Business Performance of Monex Securities (JGAAP) Growth in mutual funds, FX and fixed income revenues, etc. offset the decline in net financial income, which was affected by the market plunges in Aug. Further earnings growth is expected through the promotion of alliance strategies. Quarte
Slide 15: Additional Shareholder Distribution
Additional Shareholder Distribution In accordance with the shareholder return policy that came into effect on Jan.4, 2024, a share buyback program is proceeding. ◆ Capital Management ◆ Overview of Share Buyback Announced the following share buyback on Jul. 26, 2024 The Company aims to achieve an ROE
Slide 16: Shareholder Distribution (Actual and Forecast)
Shareholder Distribution (Actual and Forecast) The interim dividend for FYE Mar. 2025 is 15.1 yen per share. The Company is in the middle of a share buyback period, while at the same time it announced a special year-end dividend. ◆ Dividend Per Share ◆ TSR (Total Shareholder Return: five-year basis)
Slide 17: II. Consolidated Performance
Ⅱ. Consolidated Performance 16
Slide 18: Highlights 2Q of FYE Mar. 2025 (3 months)
Highlights 2Q of FYE Mar. 2025 (3 months) Brokerage business generated stable profits. Due to lower trading value of the marketplace at Coincheck and the appreciation of JPY/USD vs the previous quarter, quarterly profit* was ¥1.6B. Reported ¥0.6B as a profit of equity method investment in Monex Secu
Slide 19: QoQ Comparison (3 months) Consolidated Performance
QoQ Comparison (3 months) Consolidated Performance FYE Mar. 2025 FYE Mar. 2025 1Q 2Q Rate of (JPY million) Variance Reference change (Apr. 2024– Jun. 2024) (Jul. 2024– Sep. 2024) Total operating revenue after P20: Analysis of Japan segment deducting financial expenses and 16,962 15,433 -1,528 -9% P2
Slide 20: QoQ Comparison (3 months) Segment Performance
QoQ Comparison (3 months) Segment Performance Japan US Crypto Asset Asia Pacific Investment (JPY million) 2025/3 2025/3 2025/3 2025/3 2025/3 2025/3 2025/3 2025/3 2025/3 2025/3 1Q 2Q 1Q 2Q 1Q 2Q 1Q 2Q 1Q 2Q Total operating revenue after deducting financial expenses and cost of sales 2,301 2,282 11,61
Slide 21: QoQ Analysis: Operating Revenue (Japan)
QoQ Comparison (3 months) Analysis: Operating Revenue Japan: A decrease in business support fees, etc. from the group companies are offset by success fees from the Monex Activist Fund. ■ Total operating revenue after deducting financial expenses Quarterly total operating revenue after deducting fina
Slide 22: QoQ Analysis: SG&A (Japan)
QoQ Comparison (3 months) Analysis: SG&A Japan: SG&A decreased due to the lower “other” expense as the Company recorded professional fees related to the acquisition of 3iQ Digital Holdings in the previous quarter. ■ Total SG&A Quarterly SG&A Total -7.6％ (-215) (JPY million) *Figures in parentheses i
Slide 23: QoQ Analysis: Operating Revenue (US, USD)
QoQ Comparison (3 months) Analysis: Operating Revenue (USD) US: Commissions were relatively stable and net financial income on client cash stayed steady due to high US interest rates despite the federal fund rate cut in September in the US. ■ Total operating revenue after deducting financial expense
Slide 24: QoQ Analysis: SG&A (US, USD)
QoQ Comparison (3 months) Analysis: SG&A (USD) US: Overall expenses were controlled and remained almost the same level from the previous quarter. ■ Total SG&A Quarterly SG&A Total -0.3％ (-159) *Figures in parenthesis reflect the variance from previous quarter (USD thousand) (USD thousand) 80,000 ■ O
Slide 25: QoQ Analysis: Operating Revenue (Crypto)
QoQ Comparison (3 months) Analysis: Operating Revenue Crypto: Revenue decreased as marketplace trading volume decreased and IEO related revenue was excluded in revenue in this quarter. ■ Total operating revenue after deducting financial expenses Quarterly total operating revenue after deducting fina
Slide 26: QoQ Analysis: SG&A (Crypto)
QoQ Comparison (3 months) Analysis: SG&A Crypto: Advertising expenses were controlled in line with market conditions while professional fees related to the De-SPAC increased. Fixed costs were maintained at appropriate levels. ■ Total SG&A Total SG&A -13.0％ (-321) (JPY million) *Figures in parenthese
Slide 27: Reference: Monex Securities QoQ Analysis: Net Income
Reference: Monex Securities QoQ Comparison (3 months) Analysis: Net Income Monex Securities: Total revenue increased driven by higher FX & fixed income, while net financial income declined due to a decrease in customer margin balance resulting from the market plunges in Aug. ■ Net operating revenue
Slide 28: Reference: Monex Securities QoQ Analysis: SG&A
Reference: Monex Securities QoQ Comparison (3 months) Analysis: SG&A Monex Securities: Advertising expenses increased due to a launch of web commercials in the quarter. Commissions paid increased in line with revenue growth from wealth management business. ■ Total SG&A (JGAAP) Quarterly SG&A Total +
Slide 29: YoY Comparison (6 months) Consolidated Performance
YoY Comparison (6 months) Consolidated Performance FYE Mar. 2024 FYE Mar. 2025 Rate of (JPY million) 2Q 2Q Variance Reference change (Apr. 2023 – Sep. 2023) (Apr. 2024 – Sep. 2024) Total operating revenue after P30: Analysis of Japan segment deducting financial expenses and cost 40,952 32,395 -8,557
Slide 30: YoY Comparison (6 months) Segment Performance
YoY Comparison (6 months) Segment Performance Japan US Crypto Asset Asia Pacific Investment (JPY million) 2024/3 2025/3 2024/3 2025/3 2024/3 2025/3 2024/3 2025/3 2024/3 2025/3 2Q 2Q 2Q 2Q 2Q 2Q 2Q 2Q 2Q 2Q Total operating revenue after deducting financial expenses and cost of sales 17,897 4,583 20,2
Slide 31: YoY Analysis: Operating Revenue (Japan)
YoY Comparison (6 months) Analysis: Operating Revenue Japan: Deconsolidation of Monex Securities lightened the revenue structure since Q4 FYE2024 Mar. Monex Securities’ business performance has been recorded as a profit of equity method investment within non-operating revenue. Total operating revenu
Slide 32: YoY Analysis: SG&A (Japan)
YoY Comparison (6 months) Analysis: SG&A Japan: With the deconsolidation of Monex Securities, SG&A related to Monex Securities has been eliminated from Q4 FYE2024 Mar. ■ Total SG&A SG&A Total -63.8％ (-9,561) (JPY million) *Figures in parentheses indicate the variance from the previous year (JPY mill
Slide 33: YoY Analysis: Operating Revenue (US, USD)
YoY Comparison (6 months) Analysis: Operating Revenue (USD) US: Net financial income on client cash remained steady as US interest rates stayed at elevated levels. Other commissions increased due to strong trading volume of Equities and Options from high value customer base despite low market volati
Slide 34: YoY Analysis: SG&A (US, USD)
YoY Comparison (6 months) Analysis: SG&A (USD) US: Information expenses decreased because TradeStation started to charge their customers for market data fees. Overall expenses have been maintained at appropriate levels. ■ Total SG&A Total SG&A -2.1％ (-2,542) *Figures in parentheses indicate the vari
Slide 35: YoY Analysis: Operating Revenue (Crypto)
YoY Comparison (6 months) Analysis: Operating Revenue Crypto: Transaction value increased as a result of the recovery of the crypto asset market, driving an increase in Marketplace revenues. IEO related revenues were recorded as well. ■ Total operating revenue after deducting financial expenses Tota
Slide 36: YoY Analysis: SG&A (Crypto)
YoY Comparison (6 months) Analysis: SG&A Crypto: Advertising expenses increased with the launch of the Coincheck, Inc. television advertising campaign in 1Q. Fixed expenses were appropriately controlled while professional fees related to the De-SPAC transaction increased. ■ Total SG&A Total SG&A +49
Slide 37: Reference: Monex Securities YoY Analysis: Net Income
Reference: Monex Securities YoY Comparison (6 months) Analysis: Net Income Monex Securities: Account transfer from AEON Bank has led to a significant growth in mutual funds related revenues. Fixed income related revenue increased due to growth in wealth management business. ■ Net operating revenue (
Slide 38: Reference: Monex Securities YoY Analysis: SG&A
Reference: Monex Securities YoY Comparison (6 months) Analysis: SG&A Monex Securities: Commissions paid increased in line with growing revenues from mutual funds and fixed income. ■ Total SG&A (JGAAP) SG&A Total +9.7％ (+1,373) (JPY million) *Figures in parentheses indicate the variance from the prev
Slide 39: Investors' Guide
Investors’ Guide Shareholders distribution Shareholders & indicators per share ◆ Capital Management ◆ Major shareholders and shareholder breakdown (as of Sep. 30, 2024) Monex Group, Inc. 0.5% The Company aims to achieve an ROE of 15% while appropriately MOMO&Co. and Oki Matsumoto 9.0％*2 Securities c
Slide 40: III. Business Update
MONEX GROUP IT. Business Update 39
Slide 41: Monex Securities 1/2
Monex Securities 1/2 The alliance with nationwide partners and the reinforced wealth management business drive rapid growth in the customer base and their assets in custody as well as steady progress of the asset gathering model. (JPY Trillion) 15 Customer Assets at Monex Securities 12 ¥8.3T Japanes
Slide 42: Monex Securities 2/2
Monex Securities 2/2 Following the launch of periodic purchase service using d CARD in Jul. 2024, the account linkage with d ACCOUNT has started in Sep. Furthermore, a mini app for asset building service for beginners within d-Barai app is scheduled to be launched within this fiscal year. Initiative
Slide 43: Monex Asset Management
Monex Asset Management Asset under management (AUM) of Robo-advisory services is to reach ¥100B. Robo-advisor services have seen rapid increases in balances ■ Robo-advisor services Asset Under Management of Robo-advisor service and Monex Activist Fund ON COMPASS 1 Ranked No.1 in Sharpe Ratio and ret
Slide 44: Monex Activist Fund
Monex Activist Fund Through engagement with portfolio companies, Monex Activist Fund pursues not only its performance, but also the improvement in productivity of listed companies and the development of capital markets in Japan. Monex Activist Fund Changes in Asset Under Management of Recent Engagem
Slide 45: 3iQ Digital Holdings Inc.
3iQ Digital Holdings Inc. Acquired a Canadian crypto asset management company, 3iQ Digital Holdings Inc. Monex Group aims to capture the crypto asset management needs of institutional investors and exchanges around the world, which are expected to grow in the future. 3iQ Digital Holdings Inc. ■ Busi
Slide 46: TradeStation 1/3
TradeStation 1/3 Net interest income from customer deposits remained strong due to high US interest rates. Interest on customer cash ・Interest income from customer cash deposits ($2.5 B as of the end of Sep. 2024) benefits TradeStation and is recorded as net financial income. ・About 54% of customer
Slide 47: TradeStation 2/3
TradeStation 2/3 TradeStation’s aim is to grow its target customer base by strengthening its outbound sales team. A revision has been made to the definition of the target customers*. Revenue from target customers make up 82% of total revenues. The number of main target customers Revenue from target
Slide 48: TradeStation 3/3
TradeStation 3/3 Leveraging award-winning products and services along with marketing and education, outbound sales and concierge services to attract and retain target customers. TradeStation’s value creation cycle Product & Services Award-winning sophisticated and active trader brokerage and analysi
Slide 49: Coincheck 1/5
Coincheck 1/5 With it’s strong reputation and large customer base, Coincheck promotes corporate services to support web3 businesses. Coincheck Business Outlook Services provided - Coincheck App Crypto asset trading service with one of the largest customer bases in Japan. - IEO (Initial Exchange Offe
Slide 50: Coincheck 2/5
Coincheck 2/5 Coincheck continues to attract customers as Japan’s premier and most trusted crypto assets trading platform. Crypto asset exchange and marketplace App Downloads Leading market share with 19%*3 No.1 domestic market share for Coincheck App wins GOOD DESIGN AWARD 2024 share of verified ac
Slide 51: Coincheck 3/5
Coincheck 3/5 Notable crypto industry updates Coincheck’s positon in Japan’s crypto industry Share by accounts1 Share by Customers’ Assets - In January and July 2024, the U.S. Securities and in Custody1 Exchange Commission(SEC) approved the first Bitcoin and Ethereum spot ETFs, respectively. 19% 25%
Slide 52: Coincheck 4/5
Coincheck 4/5 Coincheck is the leading player in the Japanese IEO market, completing the most and largest Yen value of IEO’s. Coincheck Initial Exchange Offering (IEO) The 3rd IEO – BRIL is the first IEO of a listed company’s subsidiary. 1st IEO - PLT 3rd IEO - BRIL 4th IEO (scheduled) Completed in
Slide 53: Coincheck 5/5
Coincheck 5/5 Coincheck Group (CCG)*1 is currently in the process of preparing for listing on Nasadaq. Plans to become a publicly listed company on the Nasdaq in order to secure global talent and maximize business opportunities. - After the proposed business combination with a Nasdaq-listed SPAC, Th
Slide 54: New Businesses (Japan segment)
New Businesses (Japan segment) Promote new businesses based on a corporate philosophy that aims to optimize an individual's lifetime balance sheet. Human Resource Development Business Life Settlement Business Operates classrooms for STEAM education. Launched “insurance purchase” service Viling Inc.
Slide 55: ESG and Sustainability 1/2
ESG and Sustainability 1/2 Integrated Report 2024 (Japanese) became public, conveying Monex Group’s way of thoughts and initiatives on sustainability. English version is scheduled to become available in Nov. Summary Integrated Report 2024 - Monex Group’s value creation story - • The report introduce
Slide 56: ESG and Sustainability 2/2
ESG and Sustainability 2/2 Promoting sustainability management by enhancing stakeholder engagement. Stakeholder engagement Engagement Initiatives ESG related investment has increased along with improvement of ESG index evaluation • ESG lecture was held within the company with an • Selected as consti
Slide 57: Appendix: Group Overview
MONEX GROUP Appendix: Group Overview 56
Slide 58: Appendix: Highlights 2Q of FYE Mar. 2025 (3 months) 1/3
Appendix: Highlights 2Q of FYE Mar. 2025 (3 months) 1/3 ◆Total operating revenue after deducting financial expenses and cost of sales, and quarterly profit attributable to owners of the Company (JPY Million) Total operating revenue after deducting financial expenses and cost of sales Quarterly profi
Slide 59: Appendix: Highlights 2Q of FYE Mar. 2025 (3 months) 2/3
Appendix: Highlights 2Q of FYE Mar. 2025 (3 months) 2/3 ◆Total operating revenue after deducting financial expenses and cost of sales, and Segment profit (JPY Million) Total operating revenue after deducting financial expenses and cost of sales Segment profit (Quarterly profit before income taxes) 1
Slide 60: Appendix: Highlights 2Q of FYE Mar. 2025 (3 months) 3/3
Appendix: Highlights 2Q of FYE Mar. 2025 (3 months) 3/3 ◆Total operating revenue after deducting financial expenses, and Segment profit (JPY Million) Total operating revenue after deducting financial expense Segment profit (Quarterly profit before income taxes) 800 Asia 600 Pacific 400 291 328 240 2
Slide 61: Consolidated balance sheet
Consolidated balance sheet Key points of the consolidated balance sheet of Monex Group 1. The holding company Monex Group, Inc. maintains a net cash position at the end of the current period. 2. Trust assets, which are segregated deposits received from customers and guarantee deposits received, acco
Slide 62: Corporate Governance
Corporate Governance Established global-standard corporate governance practices and emphasis on dialogue with retail/institutional investors. Adoption of “company with three committees” structure - highly effective executive management monitoring system - Adopted “company with committees” structure
Slide 63: Overview of Monex Group and Main Group Companies
Overview of Monex Group and Main Group Companies ■ Monex, Inc. (Tokyo, Japan) ■ Coincheck, Inc. (Tokyo, Japan) One of the major online brokerage firms in Japan Crypto asset Exchange/Marketplace agency that is ranked No.1 in crypto asset • President : Yuko Seimei trading app downloads in Japan for 5
Slide 64: Overview of the Group
Group Overview of the Group Listed Holding Company [ Japan Segment ] [ US Segment ] [ Crypto Asset Segment ] Online Brokerage Asset Management Crypto Asset Exchange Agency [Equity method affiliate] Monex, Inc. Monex Asset Management, Inc. Small-lot and low-cost discretionary investment TradeStation
Slide 65: Investment Segment – Portfolio 1/4
Investment Segment – Portfolio 1/4 ◆ Monex Ventures, Inc. ◆ MONEX EDISON Investment Limited Partnership 64
Slide 66: Investment Segment – Portfolio 2/4
Investment Segment – Portfolio 2/4 ◆ MV I Investment Limited Partnership 65
Slide 67: Investment Segment – Portfolio 3/4
Investment Segment – Portfolio 3/4 ◆ MV I Investment Limited Partnership ◆ MV II Investment Limited Partnership 66
Slide 68: Investment Segment – Portfolio 4/4
Investment Segment – Portfolio 4/4 ◆ Social Impact Investment Fund 67
Slide 69: Disclaimer
Disclaimer About Coincheck Important Information About the Business Combination and Where to Find It In connection with the proposed business combination in connection with to the business combination agreement among Coincheck, Inc. (“Coincheck”), Coincheck Group B.V. (“CCG”), Thunder Bridge Capital
Slide 70: © Monex Group, Inc. www.monexgroup.jp/
© Monex Group, Inc. www.monexgroup.jp/
Monex Group — Q2 FYE March 2025 Earnings Presentation on 6ix