Monex Group, Inc. · TSE:8698
Monex — 1H FYE03/2004 Earnings Presentation
24 slides from Monex's earnings presentation, Oct 17, 2003
Slide 1: FYE 03/2004 1H Financial Results
FYE 03/2004 1H Financial Results October 17, 2003 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 first quarter of FYE March 2004. If the
Slide 2: I. Financial Results / II. Business Model and Future Development
I. Financial Results II. Business Model and Future Development 1
Slide 3: FYE 03/2004 1H Financial Summary: 1H FYE03/2003 vs. 1H FYE03/2004
FYE 03/2004 1H Financial Summary: FYE03/2003 1H vs. FYE03/2004 1H （in million yen） ） FYE 03/2003 FYE 03/2004 Change 1H 1H Operating Revenue 1,452 3,181 119.0% Net Operating Revenue 1,452 3,050 110.0% SG&A 2,285 2,281 ％ -0.2％ Operating Income (Loss) （833） ） 768 - Ordinary Income (Loss) （828） ） 773 -
Slide 4: FYE 03/2004 2Q Financial Summary: 1Q vs. 2Q
FYE 03/2004 2Q Financial Summary: 1Q vs. 2Q （in million yen） ） FYE 03/2004 FYE 03/2004 Change 1Q 2Q Operating Revenue 1,252 1,929 54.0% Net Operating Revenue 1,164 1,885 62.0% SG&A 1,101 1,180 7.2% Operating Income 63 705 1,019.4% Ordinary Income 66 706 962.1% Net Income 37 668 1,676.2% （Apr. – June
Slide 5: Net Operating Revenue vs. SG&A
Net Operating Revenue vs. SG&A (million yen) 1,885 1,148 1,136 1,099 1,093 1,101 1,180 Net Operating Revenue 1,164 SG&A 811 641 601 658 FYE 03/2003 2Q 3Q 4Q FYE 03/2004 Ｑ 2Ｑ 1Q 1Q Net Operating Revenue Breakdown SG&A Breakdown 100%＝ ＝ 1,885 (million yen） ） ＝ 1,180 （ million yen） 100%＝ ） Equipment le
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. After excluding one-time expenses, Outsourcing Expenses are divided into three categories. (million yen） FYE FYE 03/2003 03/2004 Major Items of SG &
Slide 7: Break-even Analysis – Number of Trades
Break-even Analysis – Number of Trades FYE 03/2004 2Q 2,500 1,100 1,004 ● Number of trades has continuously increased due to 862 805 900 the vigorous domestic stock 2,000 753 788 721 market. （ thousand） ） 688 778 778 ● Fixed type of costs are well 770 700 745 controlled. 1,500 642 Costs (million yen
Slide 8: Revenue Diversification and constant expenses
Revenue Diversification and constant expenses ( million yen) Others 800 Monex FX 600 Financial Income Stock Brokerage 400 (Margin) Underwriting (IPO) 200 Investment Trusts Stock Brokerage 0 (Cash) Leasing fees Information costs -200 Personnel expenses -400 Outsourcing expenses Operating Income (loss
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) 220 200 Monex Kabu.com 180 Nikko Beans 160 ＤＬＪ Matsui 140 E trade 120 100 80 04/2003 05/2003 06/2003 07/2003 08/2003 09/2003 Source: Company data on HP Monex has a larger growth rate than the other competitor
Slide 10: Number of Accounts
Number of Accounts Number of margin accounts and Number of Accounts the ratio of margin to total number of accounts 400,000 30% Matsui Monex 12/2002 09/2003 Ratio of margin to total DLJ 25% （ 56） ） number of accounts 300,000 （ 65） ） Matsui 20% E trade 200,000 15% E trade 10% 100,000 Monex 12/2002 09
Slide 11: Customers' Assets in Custody
Customers’ Assets in Custody (Billion yen) \13,000 Nikkei 225 Index \10,000 597.5 \7,000 489.2 100.0 458.9 428.8 34.6 408.1 404.5 74.7 Customers' assets in custody 72.0 64.2 31.4 31.9 64.0 64.7 31.8 31.2 29.8 445.8 350.9 370.9 329.7 307.8 302.1 06/2002 09/2002 12/2002 03/2003 06/2003 09/2003 Domesti
Slide 12: Margin trades
Margin trades Number of margin accounts and margin trades outstanding Margin trades outstanding （billion 6,000 30 Margin trades outstanding Number of margin accounts 5,345 5,000 Number of margin accounts 5,100 20 4,914 4,664 4,000 4,455 4,283 24.3 19.1 10 17.4 3,000 13.0 14.7 12.6 （ 2,000 0 yen） 04/
Slide 13: Stock Lending
Stock Lending Our Ourunique uniqueservice service“Stock “StockLending” Lending”has hasbeen beensteadily steadilygrowing. growing. Number of Stock Lending accounts Stock lending Stock lending 6,000 accounts are now Portfolio is now 4,807 4,983 over 5,000 over 20 billion yen 5,000 4,231 (Oct. 2003) (O
Slide 14: Monex FX – Margin FOREX Trades
Monex FX – Margin FOREX Trades FX FXtrades tradesfits fitstotoour ourclient clientbase; base;both bothaccounts accountsand andvolume volumehas hasgrown grownrapidly rapidly Company employees & －Margin － FX trading started Monex' Customers Public servants: on April 21; since then both ● are familiar
Slide 15: Investment Trusts
Investment Trusts A wide range of investment trusts for customers with various risk Attractive investment trusts preference and return requirement Position Potential economic growth in the emerging HSBC stock market ; the fund was selected by China Open Long Short focusing on research capabilities a
Slide 16: Underwriting (IPO) Business
Underwriting (IPO) Business FYE 03/2004 2Q ～ FYE 03/2004 2Q FYE 03/2003 3Q～ (million yen) Company Name IPO Date Share Number of Company Underwriting amount DWANGO Co., Ltd. 17/7 4.0% 2Q 1Q 4Q 3Q 3Q 4Q 1Q 2Q Artist House, Inc 8/8 1.0% 9 4 9 7 Monex 376 358 342 750 AKINDOSUSHIRO CO., LTD 18/9 1.0% CEN
Slide 17: I. Financial Results / II. Business Model and Future Development
I. Financial Results II. Business Model and Future Development 16
Slide 18: Concept for Growth
Concept for Growth Prepare Preparefor forfurther furtherprogress progresswith withwell wellplanned plannedstrategy. strategy. Novice investors Highly active investors Stock Margin JGB IPO FX Trading Lending 《《《《 Saison Domestic Foreign currency Stocks Foreign I.T. Co-operation with other companies I
Slide 19: All-round Internet Securities House
All-round Internet Securities House Continuously Continuouslymake makeefforts effortstotobe beall-round all-roundnet netsecurities securitieshouse house Continuous efforts to provide better products & services Provide a wide Retain range of Price highly products to fluctuation satisfy active custome
Slide 20: Revenue Diversification
Revenue Diversification Diversify Diversifyand andexpand expandrevenue revenuesource sourcewhile whilecontrolling controllingexpenses expenses Accelerate an increase of profit Revenue while growing number of accounts, Image of Future Revenue Growth customers’ assets FX Margin Trading and trades Fina
Slide 21: Growth stages
Growth stages Monex Monexwill willgo gototothe thenext nextstage stagewhile whilethe thestock stockmarket marketisisgrowing growing Next stage!! Monex 3rd stage: Novice investors join the stock market Others 2ndstage: Day traders are 1st stage: major players Stating up period Market size Revenue cur
Slide 22: Potential for Growth
Potential for Growth All Allthe theindividuals’ individuals’assets assetsatatother othersecurities securitieshouses, houses,banks banksand andpostal postalsavings savingsetc. etc.are areour ourpotential potentialfor forgrowth growth Total Individuals’ assets in Japan : Potential Ratio of Revenue 140
Slide 23: Increase “Firm Value”
Increase “Firm Value” To Toincrease increase“assets “assetsinincustody” custody”isisthe thekey. key. Customers’ Firm Value assets in Custody Postal Savings, Banks, Insurance Companies ：1000 trillion yen X ?? ％ In order to double the XX billion yen Y trillion yen customers’ assets in custody Conventi
Slide 24: MONEX
MONEX http://www.monex.co,jp/