Monex Group, Inc. · TSE:8698
Monex — Q2 FY2021 Earnings Presentation
37 slides from Monex's earnings presentation, Oct 27, 2020
Slide 1: Databook: Financial Results for 2Q of Fiscal Year Ending March 31, 2021
October 27, 2020 (TSE 1st Section: 8698) DATABOOK Financial Results for 2Q of Fiscal Year Ending March 31, 2021 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.36 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 Asia-Pacific Segment Crypto Asset Segment 6,000,000 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, 2018 Dec.31, 2018 Mar.31, 2019
Slide 5: Market and Transaction Data (2) – Number of Employees
Market and Transaction Data (2) – Number of Employees Japan Segment U.S. Segment Asia-Pacific Segment Crypto Asset Segment (person） 1,000 500 0 As of As of As of As of As of As of As of As of As of Sep.30, 2018 Dec.31, 2018 Mar.31, 2019 Jun.30, 2019 Sep.30, 2019 Dec.31, 2019 Mar.31, 2020 Jun.30, 202
Slide 6: Market and Transaction Data (3) – Japan Segment – 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 2,000,000 1,500,000 1,000,000 500,000 0 As of Sep. 30, As of Dec. 31, As of Mar. 31, As of Jun. 30, As of Sep. 30, As of Dec. 31, As
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 ◆ Monex’s cash & margin trading value and margin balance Monex’s share in retail trading value of 2 major stock exchanges and (JPY 100million) its equity trading values (%) (JPY
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) Sales of Investment Trusts(load) (left) 20,
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) 1,500 400,000 FX revenue (left) Trading value (right) 300,000 1,000 200,000 500 100,000 0 0 2Q of FYE 3Q of FYE 4Q of FYE 1Q of FYE 2Q of FYE 3Q of FYE 4Q of FYE 1Q of FYE 2Q of FYE Mar.
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% 30% Self-employed Civil servant Homemaker 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 A
Slide 12: Market and Transaction Data (9) U.S. Segment – TradeStation Group
Market and Transaction Data (9) U.S. Segment – TradeStation Group ◆ Numbers of active accounts (*1) ◆ DARTs and VIX (**) （thousand） (account) 140,000 250 40 Futures DARTs(left) 120,000 Options DARTs(left) 200 Equities DARTs(left) 30 100,000 Vix Close Avg. (right) 150 80,000 (***) 20 60,000 100 40,00
Slide 13: Market and Transaction Data (10) Asia-Pacific Segment
Market and Transaction Data (10) Asia-Pacific Segment Monex Boom Securities+Monex Securities Australia ◆ Numbers of accounts with balances ◆ DARTs (account) 5,000 20,000 4,000 15,000 3,000 10,000 2,000 5,000 1,000 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 J
Slide 14: 2. Financial Data
1. Market & Transaction Data 2. Financial Data 13
Slide 15: Consolidated financial results
Consolidated financial results (JPY million) 2Q FYE Mar. 2Q FYE Mar. Variance Change 2020 2021 Commission received 11,456 16,838 5,382 47.0% Net trading income 4,254 4,445 192 4.5% Financial income 9,949 7,486 -2,463 -24.8% Other operating income 375 547 172 45.9% Total operating revenue 26,034 29,3
Slide 16: Consolidated financial results (Reclassified)
Consolidated financial results (Reclassified) Reclassified consolidated statement of income (JPY million) 2Q FYE Mar. 2020 2Q FYE Mar. 2021 Variance Change Brokerage commissions 8,669 12,612 3,943 45.5% Stocks and ETFs 5,142 8,443 3,302 64.2% Options and Futures 3,485 4,143 658 18.9% Cryptocurrency
Slide 17: Consolidated financial results (SG&A)
Consolidated financial results (SG&A) The details of SG&A in consolidated statement of income (JPY million) 2Q FYE Mar. 2020 2Q FYE Mar. 2021 Variance Change Transaction-related expenses 5,715 6,662 947 16.6% Commissions paid 2,311 2,675 364 15.8% Exchange and association dues 361 506 146 40.4% Comm
Slide 18: Quarterly consolidated financial results (Reclassified)
Quarterly consolidated financial results (Reclassified) Reclassified consolidated statement of income (JPY million) FYE Mar. 2020 FYE Mar. 2021 1Q 2Q 3Q 4Q 1Q 2Q Brokerage commissions 4,341 4,328 4,663 6,052 6,559 6,054 Stocks and ETFs 2,575 2,566 3,084 3,797 4,414 4,029 Options and Futures 1,737 1,
Slide 19: 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. 2020 FYE Mar. 2021 1Q 2Q 3Q 4Q 1Q 2Q Transaction-related expenses 2,881 2,834 2,831 3,429 3,172 3,490 Commissions paid 1,160 1,151 1,066 1,404 1,313 1,362 Exchange and assoc
Slide 20: Quarterly consolidated financial results (Other income and other expenses)
Quarterly consolidated financial results (Other income and other expenses) (JPY million) FYE Mar. 2020 FYE Mar. 2021 1Q 2Q 3Q 4Q 1Q 2Q Other financial income 30 60 23 -64 83 31 Gain on valuation of investments in 16 56 22 -74 68 20 securities Gain on sales of investments in securities - - - - - 1 Di
Slide 21: Quarterly financial results by segment (Japan, the US and Asia-Pacific)
Quarterly financial results by segment (Reclassified) (Japan, the US and Asia-Pacific) Reclassified statement of income (JPY million) FYE Mar. 2020 FYE Mar. 2021 1Q 2Q 3Q 4Q 1Q 2Q JPN US AP JPN US AP JPN US AP JPN US AP JPN US AP JPN US AP Brokerage commissions 2,127 2,136 93 2,140 2,132 92 2,730 1,
Slide 22: Quarterly financial results by segment (Crypto Asset, Investment)
Quarterly financial results by segment (Reclassified) (Crypto Asset Segment, Investment Segment) Reclassified statement of income (JPY million) FYE Mar. 2020 FYE Mar. 2021 1Q 2Q 3Q 4Q 1Q 2Q Crypto Crypto Crypto Crypto Crypto Crypto Investment Investment Investment Investment Investment Investment As
Slide 23: Quarterly financial results by segment (SG&A) (Japan, the US and Asia-Pacific)
Quarterly financial results by segment (SG&A) (Japan, the US and Asia-Pacific) The details of SG&A in statement of income (JPY million) FYE Mar. 2020 FYE Mar. 2021 1Q 2Q 3Q 4Q 1Q 2Q JPN US AP JPN US AP JPN US AP JPN US AP JPN US AP JPN US AP Transaction-related expenses 1,147 1,476 61 1,177 1,466 67
Slide 24: Quarterly financial results by segment (SG&A) (Crypto Asset, Investment)
Quarterly financial results by segment (SG&A) (Crypto Asset Segment, Investment Segment) The details of SG&A in statement of income (JPY million) FYE Mar. 2020 FYE Mar. 2021 1Q 2Q 3Q 4Q 1Q 2Q Crypto Crypto Crypto Crypto Crypto Crypto Investment Investment Investment Investment Investment Investment
Slide 25: Quarterly results by segment (Other income and expenses) (Japan, US, Asia-Pacific)
Quarterly financial results by segment (Other income and other expenses) ( Japan, the US and Asia-Pacific) (JPY million) FYE Mar. 2020 FYE Mar. 2021 1Q 2Q 3Q 4Q 1Q 2Q JPN US AP JPN US AP JPN US AP JPN US AP JPN US AP JPN US AP Gain on valuation of investments in securities 16 - - 56 - - 22 - - -74 -
Slide 26: Quarterly results by segment (Other income and expenses) (Crypto Asset, Investment)
Quarterly financial results by segment (Other income and other expenses) (Crypto Asset Segment, Investment Segment) (JPY million) FYE Mar. 2020 FYE Mar. 2021 1Q 2Q 3Q 4Q 1Q 2Q Crypto Invest Crypto Invest Crypto Invest Crypto Invest Crypto Invest Crypto Invest Asset ment Asset ment Asset ment Asset m
Slide 27: US Segment: Quarterly financial results (Reclassified) (in USD)
US Segment :Quarterly financial results (Reclassified) (in USD) Reclassified statement of income (USD thousand) FYE Mar. 2020 FYE Mar. 2021 1Q 2Q 3Q 4Q 1Q 2Q Brokerage commissions 19,477 19,745 17,358 24,787 25,588 25,059 Stocks and ETFs 4,248 4,212 3,504 5,479 6,899 6,614 Options and Futures 15,229
Slide 28: US Segment: Quarterly financial results (SG&A) (in USD)
US Segment :Quarterly financial results (SG&A) (in USD) The details of SG&A in statement of income (USD thousand) FYE Mar. 2020 FYE Mar. 2021 1Q 2Q 3Q 4Q 1Q 2Q Transaction-related expenses 13,458 13,575 12,751 16,353 15,388 16,196 Commissions paid 7,444 7,532 6,801 9,392 8,305 8,299 Exchange and ass
Slide 29: Financial results by consolidated and segment
Financial results by consolidated and segment (JPY million) FYE Mar. 2019 FYE Mar. 2020 Variance Cons.* JPN US AP Cons. JPN US AP Cons. JPN US AP Commission received 25,741 13,301 12,014 406 25,375 12,614 12,270 454 -366 -687 256 48 Net trading income 6,461 4,535 - -3 8,550 5,030 - 0 2,089 496 - 3 F
Slide 30: Financial results by consolidated and segment
Financial results by consolidated and segment (JPY million) FYE Mar. 2019 FYE Mar. 2020 Variance Crypto Asset Investment Crypto Asset Investment Crypto Asset Investment Commission received 186 - 287 - 101 - Net trading income 1,929 - 3,528 - 1,599 - Financial income - 414 - 148 - -266 Sales - - - -
Slide 31: Financial results by consolidated and segment (Reclassified)
Financial results by consolidated and segment(Reclassified) (JPY million) FYE Mar. 2019 FYE Mar. 2020 Variance Cons. * JPN US AP Cons. JPN US AP Cons. JPN US AP Brokerage commissions 19,463 10,650 8,573 404 19,383 10,294 8,838 451 -80 -356 266 47 Stocks and ETFs 12,610 10,339 2,033 404 12,022 9,926
Slide 32: Financial results by consolidated and segment (Reclassified)
Financial results by consolidated and segment(Reclassified) (JPY million) FYE Mar. 2019 FYE Mar. 2020 Variance Crypto Asset Investment Crypto Asset Investment Crypto Asset Investment Brokerage commissions 3 - 49 - 46 - Stocks and ETFs - - - - - - Options and Futures - - - - - - Cryptocurrency 3 - 49
Slide 33: Financial results by consolidated and segment (SG&A)
Financial results by consolidated and segment(SG&A) (JPY million) FYE Mar. 2019 FYE Mar. 2020 Variance Cons.* JPN US AP Cons. JPN US AP Cons. JPN US AP Transaction-related expenses 12,051 5,135 6,126 268 11,975 5,106 6,098 272 -76 -28 -28 4 Commissions paid 4,609 1,414 3,129 43 4,780 1,454 3,386 55
Slide 34: Financial results by consolidated and segment (SG&A)
Financial results by consolidated and segment(SG&A) (JPY million) FYE Mar. 2019 FYE Mar. 2020 Variance Crypto Asset Investment Crypto Asset Investment Crypto Asset Investment Transaction-related expenses 709 5 781 10 72 5 Commissions paid 213 2 166 2 -47 1 Exchange and association dues - - - - - - C
Slide 35: Consolidated statement of financial position (1) Assets
Consolidated statement of financial position (1) ■Assets (JPY million) As of As of As of As of Mar. 31, 2020 Sep. 30, 2020 Mar. 31, 2020 Sep. 30, 2020 Cash and cash equivalents 132,561 153,716 Property and equipment 4,921 4,327 Cash segregated as deposits 620,222 648,936 Intangible assets 46,006 44,
Slide 36: Consolidated statement of financial position (2) Liabilities and Equity
Consolidated statement of financial position (2) ■Liabilities ■Equity (JPY million) As of As of As of As of Mar. 31, 2020 Sep. 30, 2020 Mar. 31, 2020 Sep. 30, 2020 Trading securities and other 16 - Common stock 10,394 10,394 Derivative liabilities 3,256 3,280 Additional-paid in capital 40,291 40,258
Slide 37: Consolidated statement of financial position (3) Investments in securities
Consolidated statement of financial position (3) ■Investments in securities (JPY million) As of As of Measurement method Description Mar. 31, 2020 Sep. 30, 2020 Investments in securities 5,447 8,196 Fair Value Through Profit or Loss (FVTPL) Quoted prices (unadjusted) in active markets for identical