Monex Group, Inc. · TSE:8698
Monex — FYE03/2003 3Q Earnings Presentation
26 slides from Monex's earnings presentation, Jan 22, 2003
Slide 1: FYE03/2003 3Q Financial Results
FYE03/2003 3Q Financial Results January 22, 2003 Forward-looking Statements Statements made at this presentation and in this material include forward-looking statements that are based on our current expectations, assumptions, estimates and projections about our business and the industry. These forwa
Slide 2: I. Financial Results, II. Other Business, III. Business Model and Future Development
I. Financial Results II. Other Business III.Business Model and Future Development 1
Slide 3: FYE 03/2003 3Q Financial Summary
FYE 03/2003 3Q Financial Summary ） (in million yen） FYE 03/2002 FYE 03/2003 Change 3Q (9 months) 3Q (9 months) Operating Revenue 2,486 2,061 -17.1% Net Operating Revenue 2,486 2,053 -17.4% Operating Expenses 3,373 3,384 0.3% Operating Loss 887 1,330 - Ordinary Loss 852 1,325 - Net Loss 921 1,369 - （
Slide 4: FYE 03/2003 3Q Financial Summary
FYE 03/2003 3Q Financial Summary (in million yen) FYE 03/2002 FYE 03/2003 Change 2Q (3 months) 3Q (3 months) Operating Revenue 641 608 -5.1% Net Operating Revenue 641 601 -6.2% Operating Expenses 1,136 1,099 -3.3% Operating Loss 495 497 - Ordinary Loss 493 497 - Net Loss 509 509 - (July-Sept 2002) （
Slide 5: Operating Revenue vs. SG&A
Operating Revenue vs. SG&A (in million yen ） Operating Revenue SG&A 1,182 1,217 1,142 1,148 1,136 1,099 1,015 974 923 891 848 942 850 794 811 748 752 764 779 647 641 608 March 2001 2Q 3Q 4Q March 2002 2Q 3Q 4Q March 2003 2Q 3Q 1Q 1Q 1Q Operating Revenue breakdown SGA Breakdown 100% = 1,099 (million
Slide 6: Break-even Analysis - Spreadsheet
Break-even Analysis - Spreadsheet 1. Divide major items of SG & A into 2 categories (1) Variable (trade volume or number of accounts base) and (2) Fixed. (unit: million yen） After excluding one-time expenses, Outsourcing Expenses are divided into three categories. FYE March 2001 FYE March 2002 FYE M
Slide 7: Break-even Analysis – Number of Trades
Break-even Analysis – Number of Trades FYE 03/2003 3Q 2,500 1000 822 867 805 Break-Even 788 2,000 788 791 753 800 number of trades Number of trades (thousand) 839 are relatively flat, Costs (in million yen) 612 601 777 770 564 577 732 745 753 offsetting an 1,500 600 increase in ad costs 615 551 586
Slide 8: Break-even Analysis – Executed Deal Ratio
Break-even Analysis – Executed Deal Ratio 18% 16% B/E executed deal ratio gradually decreased 14% 12% Affected by the merger with Saison Securities Co., Ltd. 10% 8% 6% 4% （ Executed deal ratio） ） =（ （ B/E number of executed trades） ） /（ （ number of accounts）） 2% （ Actual executed deal ratio） ） ＝（ Ac
Slide 9: TSE Trading Volume vs. Monex Trading Volume
TSE Trading Volume vs. Monex Trading Volume TSE indivual trading volume vs. Monex trading volume (Index : as of 04/2000 = 100) 400 4.4% Margin trading started Trading Volume Index 300 3.3% Monex Share 200 2.2% 100 1.1% 0 0.0% 0 0 0 0 0 1 1 1 1 1 1 2 2 2 2 2 2 /0 /0 /0 /0 /0 /0 /0 /0 /0 /0 /0 /0 /0 /
Slide 10: Stock Price
Stock Price Monex vs. Nikkei 225 average Index （based on August 4th, 2000） ） 200 Monex share price (closing price of August 4th, 2000 = 100) 180 Nikkei 225 average index (closing price of August 4th, 2000 = 100) 160 Monex IPO price (closing price of August 4th, 2000 = 100) 140 120 100 80 60 Price fl
Slide 11: I. Financial Results, II. Other Business, III. Business Model and Future Development
I. Financial Results II. Other Business III.Business Model and Future Development 10
Slide 12: Number of Customers’ Accounts
A 50,000 100,000 150,000 200,000 250,000 0 pr - 0 M 0 ay -0 0 Ju n- 00 Ju l-0 0 A ug -0 0 Se p- 00 O ct -0 0 N ov -0 0 D ec -0 0 Ja n- 01 Fe Source: each company’s IR Data b- 01 M Number of Customers’ Accounts ar -0 1 A pr -0 M 1 ay -0 1 Ju n- 01 Ju l-0 1 Au g- 01 Se p- 01 O ct- 01 N ov -0 1 D ec -0
Slide 13: Account Acquiring Costs
Account Acquiring Costs Newly acquired accounts FYE 3/2003 3Q 25,000 20,000 ・Number of newly acquired account 15,000 has decreased due to the unfavorable 10,000 stock market ; effective marketing 5,000 plans are required 0 ・For starting the margin Advertising costs (Yen thousand) trading/stock lendi
Slide 14: Customers’ Assets in Custody
Customers’ Assets in Custody ¥16,000 Nikkei 225 Average Index ¥12,000 ¥8,000 447.0 458.9 428.8 Yen billion 418.4 408.1 402.1 72.0 374.5 76.1 64.2 64.4 63.4 31.9 64.0 66.0 31.4 31.8 31.0 31.2 291.9 30.3 28.7 55.5 13.0 334.1 349.0 326.6 318.5 303.1 304.4 274.5 222.6 MRF (quasi- 03/01 06/01 09/01 12/01
Slide 15: Investment Trusts Business
Investment Trusts Business Investment Trusts Outstanding and Number of Order/Day 1,000 1,200 949 983 969 839 879 833 889 760 792 773 788 794 Outstanding (hundred million yen 717 730 681 715 Orders/Dayy 646 643 500 421 470 600 405 307 305 300 287 297 302 303 297 304 314 316 329 319 320 320 318 314 31
Slide 16: Underwriting business
Underwriting business Underwriting: number of issues Underwriting fee (Yen million) •In the 3rd Quarter we underwrote the 4Q 167 4Q following: 3Q 36 141 3Q System Technology-i Co., Ltd. 10.0% 2Q 2Q Hoosiers Corporation 8.0% 1Q 9 Marvelous Entertainment Inc. 6.0% 1Q 67 ABC- Mart 4.0% 7 20 16 For-side
Slide 17: I. Financial Results, II. Other Business, III. Business Model and Future Development
I. Financial Results II. Other Business III.Business Model and Future Development 16
Slide 18: Business Model
Business Model Focus Focuson onthe theincrease increaseininE2 E2under underthe thesevere severemarket marketconditions. conditions. Re = P× E1＋ P× E2 – Expenses Expected Probability Our Probability of Our Return of shift to earnings no shift to earning Expenses （Firm direct under the direct finance
Slide 19: E1 Strategy
E1 Strategy Major Majorinvestments investmentshas hasbeen beenalready alreadycompleted: completed: Continuously Continuously effort efforttotoimprove improvedaily daily life lifeaccount accountfunctions functionswithout withoutlarge largeamount amountofofinvestment. investment. 【Daily Life account・
Slide 20: E2 Strategy
E2 Strategy Pursue Pursuethe thestrategy strategytotoreach reachbreakeven breakevenpoint pointunder underthe theharsh harshenvironment environmentwhere whereshift shifttoto direct directfinance financeshould should bebedelayed delayedand andthe thestagnant stagnantstock stockmarket marketconditions
Slide 21: Stock Lending
Stock Lending S/L th S/Lservice servicestarted startedon onJanuary January15 15th, , 2003; 2003;and andititisiscontinuously continuouslydeveloping. developing. Stocks Stocks S/L Client market Fee Fee ■ ■Application Applicationaccepted accepted/ /Portfolio PortfolioSize Size ■■Cautious Cautiousmanage
Slide 22: Margin trading - Impact on number of trades (1)
Margin trading - Impact on number of trades (1) On OnDec. Dec.2,2,2002, 2002,margin margintrading tradingstarted; started; itithas hascontributed contributedtotothe theincrease increaseininnumber numberofoftrades. trades. Change in number of trades (index : number of trades of October 1, 2002 = 100)
Slide 23: Margin trading - Impact on number of trades (2)
Margin trading - Impact on number of trades (2) When Wheninfluence influenceofofmarket marketfluctuation fluctuationisisdeducted, deducted, number numberofof cash cashtransactions transactions somewhat somewhat shifted shiftedtotomargin margintrading, trading,but butthere thereisisfavorably favorabl
Slide 24: Margin trading (3) – current position toward our goal
Margin trading (3)– current position toward our goal Completed Completed20% 20%ofofour ourroad roadtoward towardBreak-even Break-evenpoint. point. May Mayhave havetotofocus focuson onefforts efforts totocontinuously continuouslyand andaggressively aggressively acquire acquiremargin marginaccounts ac
Slide 25: Expenses
Expenses Costs Costsrelated relatedtotonew newservices serviceshave haveadded; added;however, however,expenses/ expenses/account accountare arerelatively relativelystable stable partly partlybecause becauseofofits itsefforts effortstotoreduce reduceoutsourcing outsourcingexpenses. expenses. 【Increas
Slide 26: MONEX
MONEX http://www.monex.co,jp/