Slide 1: Databook: Financial Results for 2Q of Fiscal Year Ending March 31, 2017
October 28, 2016 (TSE 1st Section: 8698) DATABOOK Financial Results for 2Q 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 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 Sep.30, 2014 Dec.31, 2014 Mar.31, 2015 Jun.30, 2015 Sep.30, 2015 Dec.31, 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 Sep.30, 2014 Dec.31, 2014 Mar.31, 2015 Jun.30, 2015 Sep.30, 2015 Dec.31, 2015 Mar.31, 2016 Jun.30, 2016 Sep.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 Sep. 30, As of Dec. 31, As of Mar. 31, As of Jun. 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 2Q of FYE 3Q of FYE 4Q of FYE 1Q of FYE 2Q of FYE 3Q of FYE 4Q of FYE 1Q 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 2Q of FYE 3Q of FYE 4Q of FYE 1Q of FYE 2Q of FYE 3Q of FYE 4Q of FYE 1Q of FYE 2Q 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 balance ◆ 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 Sep. As of Dec. As of Mar. As of Jun. As of Sep. As of Dec. As of Mar. As of Jun. As of Sep. 2Q of FYE 3Q
Slide 14: 2. Financial Data
1. Market & Transaction Data 2. Financial Data 13
Slide 15: Introduction: Consolidated financial statements for 2Q 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 (6 months)
Consolidated financial results (6 months) (JPY million) 2Q FYE Mar. 2Q FYE Mar. Variance Change 2016 2017 Commission received 17,372 12,903 -4,469 -25.7% Net trading income 3,747 2,385 -1,362 -36.3% Financial income 7,423 6,362 -1,061 -14.3% Other operating income 425 401 -25 -5.8% Total operating r
Slide 17: Consolidated financial results (Reclassified) 6 months
Consolidated financial results (Reclassified) 6 months Reclassified consolidated statement of income (JPY million) 2Q FYE Mar. 2016 2Q FYE Mar. 2017 Variance Change Brokerage commissions 13,830 9,974 -3,856 -27.9% Stocks and ETFs 9,913 6,928 -2,986 -30.1% Options and Futures 3,917 3,047 -870 -22.2%
Slide 18: Consolidated financial results (SG&A) 6 months
Consolidated financial results (SG&A) 6 months The details of SG&A in consolidated statement of income (JPY million) 2Q FYE Mar. 2016 2Q FYE Mar. 2017 Variance Change Transaction-related expenses 7,067 5,467 -1,600 -22.6% Commissions paid 2,873 2,068 -805 -28.0% Exchange and association dues 648 426
Slide 19: Quarterly consolidated financial results
Quarterly consolidated financial results (JPY million) FYE Mar. 2016 FYE Mar. 2017 1Q 2Q 3Q 4Q 1Q 2Q Commission received 8,499 8,872 7,345 7,435 6,807 6,096 Net trading income 1,813 1,934 1,432 1,491 1,309 1,076 Financial income 3,670 3,753 3,950 3,237 3,271 3,090 Other operating income 212 213 211
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 Brokerage commissions 6,769 7,061 5,651 5,836 5,333 4,642 Stocks and ETFs 4,974 4,940 3,956 3,926 3,662 3,266 Options and Futures 1,795 2,
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 Transaction-related expenses 3,522 3,544 3,365 3,430 2,837 2,630 Commissions paid 1,371 1,502 1,238 1,201 1,087 981 Exchange and associa
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 Other financial income 77 -50 979 -368 355 288 Dividends income 15 5 5 5 4 6 Gain or loss on Financial instruments for risk hedging 57 -57 2 -2 - - Others 5 3 973 -3
Slide 23: Quarterly financial results by segment
Quarterly financial results by segment (JPY million) FYE Mar. 2016 FYE Mar. 2017 1Q 2Q 3Q 4Q 1Q 2Q 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 5,394 2,975 163 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 Net trading
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 1Q 2Q 3Q 4Q 1Q 2Q 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 4,488 2,153 161 4,529 2,454 114 3,503 2,093 85 3,513
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 1Q 2Q 3Q 4Q 1Q 2Q 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 1,656 1,856 45 1,638 1,898 57 1,681 1,714 55 1,381 2,
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 1Q 2Q 3Q 4Q 1Q 2Q 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 -138 195 - -112 -30 - 90 -3 - 21 -111 - -215 -12 - 45 -17 - ins
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 Brokerage commissions 17,714 20,168 17,244 19,496 18,589 16,453 Stocks and ETFs 4,356 4,580 4,393 4,729 4,412 4,058 Options and Futures 13,3
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 Transaction-related expenses 15,277 15,601 14,120 17,507 13,875 12,974 Commissions paid 8,626 9,632 7,659 8,069 7,502 6,902 Exchange and a
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 Sep. 30, 2016 Mar. 31, 2016 Sep. 30, 2016 Cash and cash equivalents 61,902 77,747 Property and equipment 2,457 2,121 Cash segregated as deposits 497,442 486,924 Intangible assets 53,053 51,82
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 Sep. 30, 2016 Mar. 31, 2016 Sep. 30, 2016 Trading securities and other - 11 Common stock 10,394 10,394 Derivative liabilities 7,178 4,137 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 Sep. measurement method Description 31, 2016 30, 2016 Investments in securities 3,707 4,294 Fair Value Through Profit or Loss Quoted prices (unadjusted) in active markets for identical - - asse