Slide 1: Databook: Financial Results for 3Q of Fiscal Year Ending March 31, 2017
January 31, 2017 (TSE 1st Section: 8698) DATABOOK Financial Results for 3Q of Fiscal Year Ending March 31, 2017 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 Asia-Pacific 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, 2014 Mar.31, 2015 Jun.30, 2015 Sep.30, 2015 Dec.31, 2015 Mar.
Slide 5: Market and Transaction Data (2) – Number of Employees
Market and Transaction Data (2) – Number of Employees (person） Japan Segment U.S. Segment Asia-Pacific 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, 2014 Mar.31, 2015 Jun.30, 2015 Sep.30, 2015 Dec.31, 2015 Mar.31, 2016 Jun.30, 2016 Sep.30, 2016 Dec.31, 2016 (p
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
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. (FX)
Market and Transaction Data (6) Japan Segment - Monex, Inc. (FX) ◆OTC FX business (JPY million) (JPY 100million) 1,500 200,000 Commissions(left) Trading revenue(left) Trading value (right) 150,000 1,000 100,000 500 50,000 0 0 3Q of FYE 4Q of FYE 1Q of FYE 2Q of FYE 3Q of FYE 4Q of FYE 1Q of FYE 2Q o
Slide 10: Market and Transaction Data (7) Japan Segment – Monex, Inc. (Customer distribution)
Market and Transaction Data (7) 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 11: Market and Transaction Data (8) Japan Segment - Monex, Inc. (Capital Adequacy Ratio)
Market and Transaction Data (8) 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 12: Market and Transaction Data (9) U.S. Segment – TradeStation Group
Market and Transaction Data (9) 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 13: Market and Transaction Data (10) Asia-Pacific Segment- Monex Boom Securities
Market and Transaction Data (10) Asia-Pacific 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
Slide 14: 2. Financial Data
1. Market & Transaction Data 2. Financial Data 13
Slide 15: Introduction: Consolidated financial statements for 3Q FYE March 2017
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 AP(*) with a view to creating a global online financial group ■ Consolidated fina
Slide 16: Consolidated financial results (9 months)
Consolidated financial results (9 months) (JPY million) 3Q FYE Mar. 3Q FYE Mar. Variance Change 2016 2017 Commission received 24,717 19,666 -5,051 -20.4% Net trading income 5,179 3,446 -1,733 -33.5% Financial income 11,373 9,827 -1,545 -13.6% Other operating income 636 534 -103 -16.1% Total operatin
Slide 17: Consolidated financial results (Reclassified) 9 months
Consolidated financial results (Reclassified) 9 months Reclassified consolidated statement of income (JPY million) 3Q FYE Mar. 2016 3Q FYE Mar. 2017 Variance Change Brokerage commissions 19,481 15,185 -4,296 -22.1% Stocks and ETFs 13,869 10,689 -3,180 -22.9% Options and Futures 5,612 4,496 -1,116 -1
Slide 18: Consolidated financial results (SG&A) 9 months
Consolidated financial results (SG&A) months The details of SG&A in consolidated statement of income (JPY million) 3Q FYE Mar. 2016 3Q FYE Mar. 2017 Variance Change Transaction-related expenses 10,432 8,323 -2,109 -20.2% Commissions paid 4,111 3,080 -1,031 -25.1% Exchange and association dues 898 60
Slide 19: Quarterly consolidated financial results
Quarterly consolidated financial results (JPY million) FYE Mar. 2016 FYE Mar. 2017 1Q 2Q 3Q 4Q 1Q 2Q 3Q Commission received 8,499 8,872 7,345 7,435 6,807 6,096 6,763 Net trading income 1,813 1,934 1,432 1,491 1,309 1,076 1,061 Financial income 3,670 3,753 3,950 3,237 3,271 3,090 3,466 Other operatin
Slide 20: Quarterly consolidated financial results (Reclassified)
Quarterly consolidated financial results (Reclassified) Reclassified consolidated statement of income (JPY million) FYE Mar. 2016 FYE Mar. 2017 1Q 2Q 3Q 4Q 1Q 2Q 3Q Brokerage commissions 6,769 7,061 5,651 5,836 5,333 4,642 5,210 Stocks and ETFs 4,974 4,940 3,956 3,926 3,662 3,266 3,761 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. 2016 FYE Mar. 2017 1Q 2Q 3Q 4Q 1Q 2Q 3Q Transaction-related expenses 3,522 3,544 3,365 3,430 2,837 2,630 2,856 Commissions paid 1,371 1,502 1,238 1,201 1,087 981 1,012 Excha
Slide 22: Quarterly consolidated financial results (Other income and other expenses)
Quarterly consolidated financial results (Other income and other expenses) (JPY million) FYE Mar. 2016 FYE Mar. 2017 1Q 2Q 3Q 4Q 1Q 2Q 3Q Other financial income 77 -50 979 -368 355 288 1,012 Gain on sales of investments in securities - - - - - - 83 Gain on redemption of investment securities - - - -
Slide 23: Quarterly financial results by segment
Quarterly financial results by segment (JPY million) FYE Mar. 2016 FYE Mar. 2017 2Q 3Q 4Q 1Q 2Q 3Q JPN U.S. AP JPN U.S. AP JPN U.S. AP JPN U.S. AP JPN U.S. AP JPN U.S. AP Commission received 5,415 3,379 114 4,324 2,968 86 4,297 3,084 90 3,953 2,807 74 3,548 2,487 86 4,014 2,697 83 Net trading income
Slide 24: Quarterly financial results by segment (Reclassified)
Quarterly financial results by segment (Reclassified) Reclassified statement of income (JPY million) FYE Mar. 2016 FYE Mar. 2017 2Q 3Q 4Q 1Q 2Q 3Q JPN U.S. AP JPN U.S. AP JPN U.S. AP JPN U.S. AP JPN U.S. AP JPN U.S. AP Brokerage commissions 4,529 2,454 114 3,503 2,093 85 3,513 2,265 90 3,274 2,012 7
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. 2016 FYE Mar. 2017 2Q 3Q 4Q 1Q 2Q 3Q JPN U.S. AP JPN U.S. AP JPN U.S. AP JPN U.S. AP JPN U.S. AP JPN U.S. AP Transaction-related 1,638 1,898 57 1,681 1,714 55 1,381 2,040 47 1,320 1,502 46
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. 2016 FYE Mar. 2017 2Q 3Q 4Q 1Q 2Q 3Q JPN U.S. AP JPN U.S. AP JPN U.S. AP JPN U.S. AP JPN U.S. AP JPN U.S. AP Gain or loss on Financial -112 -30 - 90 -3 - 21 -111 - -215 -12 - 45 -17 - 296 30 - instruments
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. 2016 FYE Mar. 2017 1Q 2Q 3Q 4Q 1Q 2Q 3Q Brokerage commissions 17,714 20,168 17,244 19,496 18,589 16,453 16,193 Stocks and ETFs 4,356 4,580 4,393 4,729 4,412 4,058 4,059 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. 2016 FYE Mar. 2017 1Q 2Q 3Q 4Q 1Q 2Q 3Q Transaction-related expenses 15,277 15,601 14,120 17,507 13,875 12,974 13,046 Commissions paid 8,626 9,632 7,659 8,069 7,502 6,902 6,54
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, 2016 Dec. 31, 2016 Mar. 31, 2016 Dec. 31, 2016 Cash and cash equivalents 61,902 128,593 Property and equipment 2,457 2,085 Cash segregated as deposits 497,442 571,191 Intangible assets 53,053 55,6
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, 2016 Dec. 31, 2016 Mar. 31, 2016 Dec. 31, 2016 Trading securities and other - - Common stock 10,394 10,394 Derivative liabilities 7,178 6,716 Additional-paid in capital 40,510 40,547
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, 2016 31, 2016 Investments in securities 3,707 4,095 Fair Value Through Profit or Loss Quoted prices (unadjusted) in active markets for identical - - asse