Monex Group, Inc. · TSE:8698
Monex — Q3 FYE March 2009 Earnings Presentation
40 slides from Monex's earnings presentation, Jan 30, 2009
Slide 1: Financial Results of 3Q of Fiscal Year Ending March 31, 2009
January 30, 2009 Financial Results of 3Q of Fiscal Year Ending March 31, 2009 This is an English translation of Japanese presentation material prepared for IR conference held on the date above; it includes the information on consolidated financial summary under Japanese GAAP. If there is any discrep
Slide 2: Important Matters Concerning Product-related Risks
Important Matters Concerning Product-related Risks This material is explanatory material on the financial results of Monex Group, Inc. (“the Company”). The descriptions herein concerning the products, services, etc. which are handled by the Company’s group companies (“the Group Companies”), are made
Slide 3: Our Business Principles
Our Business Principles 1. PURSUING SPIRIT OF INNOVATION We will constantly strive to pioneer new fields in finance and propose new approaches to managing money. 2. STAYING CUSTOMER FOCUSED We believe that the best guide to our corporate activities is the voice of our customers. With this guide, we
Slide 4: Table of Contents
Table of Contents Important Matters Concerning Product-related Risks ･･･ p.1 2. Management Indicators Our Business Principles ･･･ p.2 (1) Management Indicators ･･･ p.22 (2) Revenues/SG&A per Customers’ Assets in Custody ･･･ p.23 I. Financial Results (3) Current and Future Structure of Revenue and Cu
Slide 5: 1. Financial Results
1. Financial Results 2. Strategies 3. Businesses 4. To our Shareholders 5. Appendix 4
Slide 6: Financial Overview
Financial Overview ■3Q(Oct.-Dec.) of FYE Mar. 31, 2009 Financial Overview Net operating revenues 4,847 million yen -17.3% from 2Q of FYE Mar. 31, 2009 ・Brokerage commissions 2,911 million yen 11.5% from 2Q of FYE Mar. 31, 2009 ・Financial income 720 million yen -65.9% from 2Q of FYE Mar. 31, 2009 S
Slide 7: Highlights of 3Q (1) Net Operating Revenues
Highlights of 3Q (1) Net Operating Revenues ■Increasing/Decreasing factors in net operating revenues of 3Q FYE2009 vs. 2Q FYE2009 ◆Financial income decreased in the 3Q due to the rebound from the temporary financial income in 2Q Decrease by 1,012 million yen (-17.3%) from 2Q of FYE Mar. 31, 2009 M
Slide 8: Highlights of 3Q (2) SG&A
Highlights of 3Q (2) SG&A ■Increasing factors in SG&A of 3Q FYE2009 vs. 2Q FYE2009 ◆Controlling SG&A increase Increase by 116 million yen (+3.0%) from 2Q of FYE Mar. 31, 2009 Major increasing factors 1. Commissions paid 26 million yen - Increase of new account openings and transactions 1. Commissi
Slide 9: Highlights of 3Q (3) Balance Sheet
Highlights of 3Q (3) Balance Sheet ■Major increasing/decreasing factors Total assets as of Dec. 31, 2009 271.4 billion yen (-13.4 billion yen [-4.7%]) ◆The decrease of deposits and guarantee money received and stock lending has led to a decrease in net assets The major components of assets and liabi
Slide 10: Financial Summary: 2Q vs 3Q of FYE Mar. 31, 2009
Financial Summary : 2Q of FYE Mar. 31, 2009 vs. 3Q of FYE Mar. 31, 2009 (in million yen, %) 2Q of FYE 3Q of FYE Mar. 31, 2009 Mar. 31, 2009 Change (Jul. 2008-Sept. 2008) (Oct. 2008-Dec. 2008) Operating Revenues 6,581 5,932 -9.9％ Net Operating Revenues 5,859 4,847 -17.3％ SG&A 3,915 4,032 3.0％ Operati
Slide 11: Financial Summary: 3Q FYE2008 vs 3Q FYE2009 (9 months)
Financial Summary : 3Q of FYE Mar. 31, 2008 vs. 3Q of FYE Mar. 31, 2009 (in 9 months) (in million yen, %) 3Q of FYE 3Q of FYE Mar. 31, 2008 Mar. 31, 2009 Change (Apr. 2007-Dec. 2007) (Apr. 2008-Dec. 2008) Operating Revenues 23,725 19,884 -16.2％ Net Operating Revenues 20,869 16,694 -20.0％ SG&A 10,584
Slide 12: Financial Summary: Financial Highlights (Quarterly Trend)
Financial Summary：Financial Highlights (Quarterly Trend) ■Net operating revenues and Operating Income ■ROE (Annualized) (million yen) (billion yen) 60% 20,000 1,600 50% Total Trading Value 40% of Individual Investors 18,000 30% in 3 major stock exchanges and JASDAQ 17% 19% 1,400 20% 13% (Average per
Slide 13: Financial Summary: Profit Margin and Cost Structure
Financial Summary：Profit Margin and Cost Structure ■Profit Margin ■Cost Structure (Oct. 2008 - Dec. 2008) (Operating income/ Net Operating revenues)* 60% Strategically 50% Fixed costs and costs controllable costs 50% 45% correlated to the number of accounts 40% 34% Commission to 33% stock exchange 3
Slide 14: Quarterly Trends in Income Statement
Financial Summary：Quarterly Trends in Income Statement (in million yen) FYE Mar.31, 2008 FYE Mar.31,2009 1Q 2Q 3Q 4Q 1Q 2Q 3Q Brokerage commissions 4,228 4,160 4,022 3,692 3,505 2,612 2,911 Underwriting and distribution commissions 19 77 5 9 1 0 1 Subscription and distribution commissions 322 302 22
Slide 15: Quarterly Trends in SG&A
Financial Summary：Quarterly Trends in SG&A (in million yen) FYE Mar.31, 2008 FYE Mar.31,2009 1Q 2Q 3Q 4Q 1Q 2Q 3Q Transaction-related expenses 1,361 1,310 1,151 1,099 1,182 1,172 1,188 Commissions paid 231 248 245 233 238 214 240 Exchange and association dues 180 168 178 132 157 111 109 Communicatio
Slide 16: 2. Strategies
1. Financial Results 2. Strategies 3. Businesses 4. To our Shareholders 5. Appendix 15
Slide 17: Mission Statement
Mission Statement Take the position as an online integrated financial service provider for individual investors Propose products and services to investors who are not active traders watching market conditions Offer comprehensive products and services with “World Class Quality” Strengthen “Pr
Slide 18: The Monex Group
The Monex Group （As of December 31, 2008） Securities Company Asset Management Investment Education M&A Advisory FX Business Monex, Inc. Overseas subsidiary Premium Online Financial Institution R&D of (Investment Ratio) Algorithm Trading and office Monex G: 100% Providing the Best Alternative Investm
Slide 19: Current Domestic Environment
Current Domestic Environment ■Increasing demand for a wide range of products and services Due to the recent turmoil in the global financial markets, in 2008 we saw the temporary reversal of the ongoing trend of shifting from deposits to proactive investment by individuals. However, under the present
Slide 20: Business Model and Strategy
Business Model and Strategy Our view of the major areas of growth Our goal Asset GLOBAL TECHNOLOGY-BASED RETAIL Overseas Markets financial services provider Online Trading Management Business (i.e. China, India) Future growth and management policy Business model that will position ourselves to O
Slide 21: Key Strategies for the Next 5 Years
Key Strategies for the Next 5 Years ■Short-term Goal: Enhance online trading capabilities; Mid-term goal: Expand asset management business European European European European European Euro Bond Currencies Stock ETF Mutual Fund Fund Exotic Chinese Asian HK ETF Asian Bond Asian Fund Currencies Stock M
Slide 22: Overseas Business Development
Overseas Business Development ■Accumulation and analysis of the latest financial ■China and India strategy information in the United States ◆ Strengthening of information accumulation by MBH ◆Establishment of the Beijing Representative Office and America (our U.S. subsidiary) full-scale business inv
Slide 23: Management Indicators
Management Indicators Management Policy Low cost / Diversification of portfolio management Capital Efficiency High profitability -oriented business model revenue sources Management Indicators ・Customers’ assets in custody ・Revenue structure ・ Revenues/ SG&A per ROE（Return on equity） Operating Marg
Slide 24: Comparison Analysis: Revenues/SG&A per Customers' Assets in Custody
Comparison Analysis : Revenues/SG&A per Customers’ Assets in Custody (Annualized) Mitsui Sumitomo FG 2.5% (Consolidated) Matsui Comparison of other online securities 2Q of Mar. 2009 (Consolidated) 2Q of Mar. 2009 ・ To lower the percentage of dependency on brokerage business MUFG (Consolidated) ・ To
Slide 25: Current and Future Structure of Revenues and Customers' Assets by Product
Current and Future Structure of Revenues and Customers’ Assets by Product ■Strengthen mutual fund business and diversify revenue sources Direction of Each Business Line 【Current Structure (3Q of FYE Mar. 2009)】 （Foreign business development plan is not included) 【Future Structure】 Investment Banking
Slide 26: 3. Businesses
1. Financial Results 2. Strategies 3. Businesses 4. To our Shareholders 5. Appendix 25
Slide 27: Stock Brokerage Business: Expansion of trading products and services
Stock Brokerage Business：Expansion of trading products and services ■Introduction of U.S. ETFs and stocks ■Enhancement of products and services ◆Started offering U.S. ETFs and stocks August 2008 ◆Keeping our position in the stock trading business ・Number of accounts reached 12,000 over five months ・
Slide 28: Interest Product Business
Interest Product Business： Strengthening the fixed income sales system and growth of the stock lending service ■Enhancing fixed income services ■Original short-term investment products/services ◆Changes in the outside environment ◆Growth of the stock lending service ・Credit uncertainty caused by cha
Slide 29: FX Business: Increasing Revenues in a Growing Market
FX Business: Increasing Revenues in a Growing Market ■ Started ‘FX PLUS’ by Monex, Inc. ■Revenue from FX business Revenue （million yen） Trading volume （billion yen) Monex, Inc. revenue Monex, FX Inc. revenue ◆ Providing a new service ‘FX PLUS‘, from Nov. 2008 350 Monex, Inc. trading volume Monex, FX
Slide 30: Mutual Fund Business
Mutual Fund Business：Top-class online mutual fund business ■Strengthen product lines and services ■Top-class online mutual fund sales to expand mutual fund balance ◆Sales volume and balance ◆Keeping the top-class position in online mutual fund sales （billion yen （billion yen/ Total sales amount of e
Slide 31: Alternative Investment Business
Alternative Investment Business：Development of Institutional Business ■Superior performance of alternative investment http://www.monexai.com/english.php products ■Development of institutional business ◆Japan portfolio extracted from a performance-linked fund to AF ◆Reallocation of human resource (Ch
Slide 32: Investment Banking Business
Investment Banking Business ： Aiming for development in the capital markets ■ IPO underwriting and related business in Monex, Inc. ■M&A advisory business ◆Participation in IPO Deals 3Q (9 mon.) comparison for 2007,2008 and 2009 ◆ “Successful M&As” *Based on underwriting date •A joint venture with th
Slide 33: Intelligence Infrastructure
Intelligence Infrastructure: Promoting Our Unique Multifaceted Approaches to Improve ROI of Customers ■Building a new infrastructure to support our ■Continuous seminars and information enrichment individual customers ◆Intelligence Infrastructure : Online financial advice ◆Providing valuable informat
Slide 34: Other Financial Businesses
Other Financial Businesses ■Kabu-robo Project ■Life insurance business http://www.lifenet-seimei.co.jp/ ◆ A life insurance company invested by Monex Group -Lifenet Insurance Company is a new kind of insurance ◆ R&D institution of Monex Group company with products sold only online, providing easy-to-
Slide 35: 4. To our Shareholders
1. Financial Results 2. Strategies 3. Businesses 4. To our Shareholders 5. Appendix 34
Slide 36: ROE and Dividend
ROE and Dividend ■Pursuing investment returns for our shareholders ◆ROE ◆Dividend Payout Policy 40% (since FYE March, 2008) ・Target 50% of consolidated net income of current fiscal year 30% ・Interim dividends to be paid out ◆Dividend Record 20% 16.4% ・Since the profit level of 1H of FYE March 2009 d
Slide 37: Investors' Guide
Investors’ Guide ■Stock information of Monex Group, Inc. ◆Share price and volume Major shareholders and share distribution Volume (shares) Price（yen） (Recorded as of the end of September 2008) 2,500,000 250,000 Major shareholders Top 3 shareholders Financial Institutions 4.62% Nikko Citi Holdings I
Slide 38: 5. Appendix
1. Financial Results 2. Strategies 3. Businesses 4. To our Shareholders 5. Appendix 37
Slide 39: Additional Data (Monex, Inc.)
20 0.0 0.5 1.0 1.5 2.0 2.5 3.0 0 10 20 30 40 50 60 70 80 90 100 07 20 /1 08 2 /1 20 (billion yen) 08 20 (billion yen) /1 08 /2 20 08 20 /2 08 /3 20 08 20 /3 08 20 /4 08 /4 20 08 ◆Cash Inflow/Outflow 20 /5 ◆Stock Inflow/Outflow 08 /5 20 20 08 08 /6 /6 20 20 08 08 /7 /7 20 20 08 08 /8 /8 20 20 08 08 /
Slide 40: Customer Portfolio of Monex, Inc.
Customer Portfolio of Monex, Inc. (as of the end of December, 2008) ■Sex ■District Female Others 23.1% 25.2% Tokyo Metropolitan District Nagoya District 50.6% Male 8.4% 74.8% Osaka District 17.8% ■Age ■Occupation 会社員 Company Employee 46.9% Over 70 70代以上 3.3% Unemployed 就業なし 17.4% 60代 60 s 11.3% Hous
Monex Group — Q3 FYE March 2009 Earnings Presentation on 6ix