Monex Group, Inc. · TSE:8698
Monex — Q1 FY2017 Earnings Presentation
31 slides from Monex's earnings presentation, Jul 28, 2016
Slide 1: Databook: Financial Results for 1Q of Fiscal Year Ending March 31, 2017
July 28, 2016 (TSE 1st Section: 8698) DATABOOK Financial Results for 1Q 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 from
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 China 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 Jun.30, 2014 Sep.30, 2014 Dec.31, 2014 Mar.31, 2015 Jun.30, 2015 Sep.30, 201
Slide 5: Market and Transaction Data (2) – Number of Employees
Market and Transaction Data (2) – Number of Employees (person） Japan Segment U.S. Segment China Segment 1,200 800 400 0 As of As of As of As of As of As of As of As of As of Jun.30, 2014 Sep.30, 2014 Dec.31, 2014 Mar.31, 2015 Jun.30, 2015 Sep.30, 2015 Dec.31, 2015 Mar.31, 2016 Jun.30, 2016 (person）
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 Jun. 30, As of Sep. 30, As of Dec. 31, As of Mar. 31
Slide 7: Market and Transaction Data (4) Japan Segment - 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 - 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 - 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 1Q of FYE 2Q of FYE 3Q of FYE 4Q of FYE 1Q of FYE 2Q of FYE 3Q of FYE 4Q o
Slide 10: Market and Transaction Data (7) Japan Segment - 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 - 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 1Q of FYE 2Q of FYE 3Q of FYE 4Q of FYE 1Q of FYE 2Q of FYE 3Q of FYE 4Q of FYE 1Q of FYE Mar. 2
Slide 13: Market and Transaction Data (10) China Segment - Monex Boom Securities
Market and Transaction Data (10) China 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 Jun. As of Sep. As of Dec. As of Mar. As of Jun. As of Sep. As of Dec. As of Mar. As of Jun. 1Q of FYE 2Q
Slide 14: 2. Financial Data
1. Market & Transaction Data 2. Financial Data 13
Slide 15: Introduction: Consolidated financial statements for 1Q 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 China) with a view to creating a global online financial group ■ Consolidated fin
Slide 16: Consolidated financial results
Consolidated financial results (million yen) 1Q FYE Mar. 1Q FYE Mar. Variance Change 2016 2017 Commission received 8,499 6,807 -1,692 -19.9% Net trading income 1,813 1,309 -504 -27.8% Financial income 3,670 3,271 -398 -10.8% Other operating income 212 237 25 11.7% Total operating revenue 14,194 11,6
Slide 17: Consolidated financial results (Reclassified)
Consolidated financial results (Reclassified) Reclassified consolidated statement of income (million yen) 1Q FYE Mar. 2016 1Q FYE Mar. 2017 Variance Change Brokerage commissions 6,769 5,333 -1,436 -21.2% Stocks and ETFs 4,974 3,662 -1,312 -26.4% Options and Futures 1,795 1,671 -124 -6.9% Underwritin
Slide 18: Consolidated financial results (SG&A)
Consolidated financial results (SG&A) The details of SG&A in consolidated statement of income (million yen) 1Q FYE Mar. 2016 1Q FYE Mar. 2017 Variance Change Transaction-related expenses 3,522 2,837 -685 -19.5% Commissions paid 1,371 1,087 -284 -20.7% Exchange and association dues 323 229 -94 -29.0%
Slide 19: Quarterly consolidated financial results
Quarterly consolidated financial results (JPY million) FYE Mar. 2016 FYE Mar. 2017 1Q 2Q 3Q 4Q 1Q Commission received 8,499 8,872 7,345 7,435 6,807 Net trading income 1,813 1,934 1,432 1,491 1,309 Financial income 3,670 3,753 3,950 3,237 3,271 Other operating income 212 213 211 202 237 Total operati
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 Brokerage commissions 6,769 7,061 5,651 5,836 5,333 Stocks and ETFs 4,974 4,940 3,956 3,926 3,662 Options and Futures 1,795 2,122 1,695 1,910
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 Transaction-related expenses 3,522 3,544 3,365 3,430 2,837 Commissions paid 1,371 1,502 1,238 1,201 1,087 Exchange and association dues 323
Slide 22: Quarterly consolidated financial results (Other income and other expenses)
Quarterly consolidated financial results (Other income and other expenses) (JPY million) FYE Mar. FYE Mar. 2016 2017 1Q 2Q 3Q 4Q 1Q Other financial income 77 -50 979 -368 355 Dividends income 15 5 5 5 4 Gain or loss on Financial instruments for risk hedging 57 -57 2 -2 - Others 5 3 973 -372 350 Othe
Slide 23: Quarterly financial results by segment
Quarterly financial results by segment (JPY million) FYE Mar. 2015 FYE Mar. 2016 FYE Mar. 2017 4Q 1Q 2Q 3Q 4Q 1Q JPN U.S. CHN JPN U.S. CHN JPN U.S. CHN JPN U.S. CHN JPN U.S. CHN JPN U.S. CHN Commission received 5,112 3,057 99 5,394 2,975 163 5,415 3,379 114 4,324 2,968 86 4,297 3,084 90 3,953 2,807
Slide 24: Quarterly financial results by segment (Reclassified)
Quarterly financial results by segment (Reclassified) Reclassified statement of income (JPY million) FYE Mar. 2015 FYE Mar. 2016 FYE Mar. 2017 4Q 1Q 2Q 3Q 4Q 1Q JPN U.S. CHN JPN U.S. CHN JPN U.S. CHN JPN U.S. CHN JPN U.S. CHN JPN U.S. CHN Brokerage commissions 4,205 2,250 99 4,488 2,153 161 4,529 2,
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. 2015 FYE Mar. 2016 FYE Mar. 2017 4Q 1Q 2Q 3Q 4Q 1Q JPN U.S. CHN JPN U.S. CHN JPN U.S. CHN JPN U.S. CHN JPN U.S. CHN JPN U.S. CHN Transaction-related 1,680 1,783 56 1,656 1,856 45 1,638 1,8
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. 2015 FYE Mar. 2016 FYE Mar. 2017 ４Q 1Q 2Q 3Q 4Q 1Q JPN U.S. CHN JPN U.S. CHN JPN U.S. CHN JPN U.S. CHN JPN U.S. CHN JPN U.S. CHN Gain or loss on Financial - 133 - -138 195 - -112 -30 - 90 -3 - 21 -111 - -
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. FYE Mar. 2016 2017 1Q 2Q 3Q 4Q 1Q Brokerage commissions 17,714 20,168 17,244 19,496 18,589 Stocks and ETFs 4,356 4,580 4,393 4,729 4,412 Options and Futures 13,359 15,587 12,851
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 Transaction-related expenses 15,277 15,601 14,120 17,507 13,875 Commissions paid 8,626 9,632 7,659 8,069 7,502 Exchange and association dues
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 Jun. 30, 2016 Mar. 31, 2016 Jun. 30, 2016 Cash and cash equivalents 61,902 84,924 Property and equipment 2,457 2,224 Cash segregated as deposits 497,442 475,799 Intangible assets 53,053 51,03
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 Jun. 30, 2016 Mar. 31, 2016 Jun. 30, 2016 Trading securities and other - 13 Common stock 10,394 10,394 Derivative liabilities 7,178 4,786 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 Jun. measurement method Description 31, 2016 30, 2016 Investments in securities 3,707 3,710 Fair Value Through Profit or Loss Quoted prices (unadjusted) in active markets for identical - - asse