Monex Group, Inc. · TSE:8698
Monex — Q3 FYE 03/2004 Earnings Presentation
22 slides from Monex's earnings presentation, Jan 21, 2004
Slide 1: FYE 03/2004 3Q Financial Results
FYE 03/2004 3Q Financial Results January 21, 2004 This is an English translation of Japanese presentation material prepared for IR conference held on the above date; it includes the information on non- consolidated financial summary under Japanese GAAP for the third quarter of FYE March 2004. If the
Slide 2: I. Financial Results and Business Overview; II. Business Model and Future Development
I. Financial Results and Business Overview II. Business Model and Future Development 1
Slide 3: FYE 03/2004 3Q Financial Summary: FYE 03/2003 3Q vs. FYE 03/2004 3Q
FYE 03/2004 3Q Financial Summary: FYE 03/2003 3Q vs. FYE 03/2004 3Q （in million yen） ） FYE 03/2003 FYE 03/2004 Change 3Q(9 months) 3Q(9 months) Operating Revenue 2,061 5,247 154.6% Net Operating Revenue 2,053 5,029 144.9% SG&A 3,384 3,545 ％ 4.7％ Operating Income (Loss) (1,330) 1,484 - Ordinary Incom
Slide 4: FYE 03/2004 3Q Financial Summary: 2Q vs. 3Q
FYE 03/2004 3Q Financial Summary: 2Q vs. 3Q （in million yen） ） FYE 03/2004 FYE 03/2004 Change 2Q 3Q Operating Revenue 1,929 2,065 7.1% Net Operating Revenue 1,885 1,979 4.9% SG&A 1,180 1,263 7.1% Operating Income 705 715 1.4% Ordinary Income 706 718 1.7% Net Income 668 679 1.6% （July – Sept. 2003） ）
Slide 5: Net Operating Revenue vs. SG&A
Net Operating Revenue vs. SG&A ） (million yen） Net 1,979 Operating 1,885 Revenue SG&A 1,164 811 641 601 658 1,148 1,136 1,101 1,180 1,263 1,099 1,093 FYE 03/2003 2Q 3Q 4Q FYE 03/2004 Ｑ 2Ｑ Ｑ 3Ｑ 1Q 1Q SG&A Breakdown Net Operating Revenue Breakdown 100% ＝1,263 （ million yen） 100%＝＝ 1,979（ （ million yen
Slide 6: Break-even Analysis Spreadsheet
Break-even Analysis Spreadsheet FYE 03/2003 FYE 03/2004 1Q 2Q 3Q 4Q 1Q 2Q 3Q 1.Ne t Ope rating Re ve nue Bre akdown（ （ million ye n） ） Brokerage 726 551 525 551 908 1,481 1,505 Monex FX 0 0 0 0 80 158 165 Underwriting (IPO) 14 19 16 11 19 36 61 Financial Income(*), Trading Income, and other service
Slide 7: Break-even Analysis – Number of Trades
Break-even Analysis – Number of Trades 1,004 1,014 2,500 1,000 809 774 775 751 800 2,000 642 600 482 587 1,500 415 416 420 SG&A Number of trades 372 362 400 123 93 283 89 93 167 278 1,000 200 1,025 1,043 1,010 1,000 980 934 902 500 0 （ million yen） ） FYE 03/2003 FYE 03/2003 FYE 03/2003 FYE 03/2003 F
Slide 8: Revenue Diversification
Revenue Diversification (million yen) 1,000 Others 800 Monex FX Financial Income Stock Brokerage(Margin) 600 Underwriting (IPO) Investment Trusts Stock Brokerage(Cash) 400 Leasing fees Information costs Personnel Expenses 200 Outsourcing Expenses Others 0 -200 -400 Operating Income(Losses) -600 02 2
Slide 9: Stock brokerage growth in number of trades
Stock brokerage growth in number of trades (Index: Number of trades as of April 2003 = 100) 280 260 240 Monex Kabu.com 220 Nikko Beans 200 ＤＬＪ 180 Matsui 160 E*trade 140 120 100 80 04/2003 05/2003 06/2003 07/2003 08/2003 09/2003 10/2003 11/2003 12/2003 Source: Company data on HP ■Rise in stock marke
Slide 10: Number of margin accounts and ratio to total accounts
Number of Accounts Number of margin accounts and its ratio to total number of accounts 30.0% Number of Accounts Matsui Ratio to total number of accounts 12/2002 12/2003 350,000 25.0% （ 56） ） （ 68） ） Monex 300,000 DLJ Matsui 20.0% E*trade 250,000 15.0% 200,000 ＊ trade E＊ 10.0% 150,000 Monex 12/2002 1
Slide 11: Customers' Assets in Custody
Customers’ Assets in Custody \13,000 \10,000 Nikkei 225 Index \7,000 6,265 Clients' assets in custody ( 100 million yen) 5,975 1,024 4,892 1,000 4,589 368 4,288 346 4,081 4,045 747 720 642 314 319 640 647 318 312 298 4,458 4,668 3,509 3,709 3,297 3,078 3,021 06/2002 09/2002 12/2002 03/2003 06/2003 0
Slide 12: Margin trades
Margin trades Number of margin accounts and margin trades outstanding Margin trades outstanding (100 million yen) 7,000 400 Margin trades outstanding Number of margin Number of margin accounts Number of margin accounts 6,000 6,215 5,345 5,952 300 trades is increasing 5,665 constantly, but the 5,000
Slide 13: Stock Lending
Stock Lending Our Ourunique uniqueservice service“Stock “StockLending” Lending”has hasexpanded expandedthe therange rangeofofchoice choicefor forindividual individualinvestors investors Number of Stock Lending Accounts 6,000 ●The number of accounts had surpassed 5,000. But 4,983 5,203 5,173 4,972 re
Slide 14: Monex FX – Margin FOREX Trades
Monex FX – Margin FOREX Trades Monex MonexFX FXhas haslittle littlecorrelation correlationwith withstock stockmarkets marketsand andattracted attractedour ourcustomers customers Correlation between volatility and trade volume Historical Volatility of NK225 Historical Volatility of USD/YEN （％） （％） Ei
Slide 15: Investment Trusts
Investment Trusts AAwide widerange rangeofof products productsand andservices servicesled ledtotothe thegrowth growthofofthis thisbusiness businessthrough throughthe the fosterage of customer satisfaction fosterage of customer satisfaction ■ Diversification of investment target Investment Trust outs
Slide 16: Underwriting (IPO) Business
Underwriting(IPO) Business Overwhelming Overwhelmingshare shareofofIPO IPObusiness businessamong amongonline onlinebrokers brokers We We were selected as a manager status by 4 companies (This 3Q: :22companies) were selected as a manager status by 4 companies (This 3Q companies) Number of company FYE
Slide 17: I. Financial Results and Business overview; II. Business Model and Future Development
I. Financial Results and Business overview II. Business Model and Future Development 16
Slide 18: Our View
Our View 【Our view on business category】 】 ■Online brokers can’t survive any longer by simply catering inexpensive and prompt services. ■Improving clients’ knowledge of financing and investments and supporting clients’ gaining high returns are inevitable 【Our View on market】 】 ■Stock market is keepi
Slide 19: Business domain and Target Customers
Business domain and Target Customers Our Ourbusiness businessdomain domainand andtarget targetsegment segmentofofclients clientsfor forfuture futuredevelopment development Day Daytraders traders serviceisis Target segment of professional and financialprofessional Compe Competitor specialisticand fin
Slide 20: Developing customer satisfaction and shareholders value
Platform Making Makingaagiant giantleap leapascribing ascribingtotothree threefactors factorsand andenhanced enhancedinformation informationsystem system Developing customer satisfaction and shareholders value Collaboration with Variety of Providing an trustworthy partners products suitable enhanced
Slide 21: Growth Path
Growth Path Shift Direct Shiftfrom fromSavings SavingstotoInvestment Investment financial We Weadvance advancetotothe thenext nextstage stagewith withthe thecoalition coalitionofoffinancial financialsystem systemreform reform system We aspire to go over the frame of online broker and evolve into a m
Slide 22: MONEX
MONEX http://www.monex.co.jp/