Monex Group, Inc. · TSE:8698
Monex — Q1 FY2009 Earnings Presentation
38 slides from Monex's earnings presentation, Jul 28, 2008
Slide 1: Financial Results of 1Q of Fiscal Year Ending March 31, 2009
July 28, 2008 Financial Results of 1Q 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 discrepanc
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 wi
Slide 4: Table of Contents
Table of Contents Important Matters Concerning Product-related Risks ･･･ p.1 III. Businesses Our Business Principles ･･･ p.2 1. Brokerage Business I. Financial Results - Stock Brokerage Business ･･･ p.24 - Fixed Income Business ･･･ p.25 1. Financial Overview - FX Business ･･･ p.26 (1) Financial Over
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 ■1Q of FYE Mar. 31, 2009 Financial Overview Net operating revenues 5,987 million yen -2.1% from 4Q of FYE Mar. 31, 2008 •Brokerage commissions 3,505 million yen -5.1% from 4Q of FYE Mar. 31, 2008 •Net gain on trading account 195 million yen － （Increased by expansion of bond sale
Slide 7: Highlights of 1Q (1) Net Operating Revenues and Extraordinary Income
Highlights of 1Q (1) Net Operating Revenues and Extraordinary Income ■Increasing and Decreasing factor in Net Operating Revenues of 1Q FYE 2009 vs. 4Q FYE 2008 ◆Increasing Factor （JPY: Increase or decrease from 4Q FYE Mar. 2008.） 1) Brokerage Commission Revenues* +JPY294M Trading volume increased an
Slide 8: Highlights of 1Q (2) Selling, General and Administrative Expenses
Highlights of 1Q (2) Selling, General and Administrative Expenses ■Increasing factors in Selling, General and Administrative Expenses of 1Q FYE 2009 vs. 4Q FYE 2008 ◆Acquisition of Monex FX and investment in FX business effect SG&A Increase by JPY546M (+16.1％） from 4Q FYE 2008 ◆Increasing Factors 1)
Slide 9: Financial Summary: 4Q of FYE Mar. 2008 vs. 1Q of FYE Mar. 2009
Financial Summary : 4Q of FYE Mar. 31, 2008 vs. 1Q of FYE Mar. 31, 2009 (in million yen, %) 4Q of FYE 1Q of FYE Mar. 31, 2008 Mar. 31, 2009 Change (Jan. 2008-Mar. 2008) (Apr. 2008-Jun. 2008) Operating Revenues 6,771 7,370 8.8％ Net Operating Revenues 6,118 5,987 -2.1％ SG&A 3,387 3,933 16.1％ Operating
Slide 10: Financial Summary: 1Q of FYE Mar. 2008 vs. 1Q of FYE Mar. 2009
Financial Summary : 1Q of FYE Mar. 31, 2008 vs. 1Q of FYE Mar. 31, 2009 (in million yen, %) 1Q of FYE 1Q of FYE Mar. 31, 2008 Mar. 31, 2009 Change (Apr. 2007-Jun. 2007) (Apr. 2008-Jun. 2008) Operating Revenues 8,029 7,370 -8.2％ Net Operating Revenues 6,871 5,987 -12.9％ SG&A 3,554 3,933 10.7％ Operati
Slide 11: 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% Total Trading Value of Individual Investors 50% 20,000 1,600 in 3 major stock exchanges and JASDAQ 40% (Average per business day)(right) 18,000 30%
Slide 12: Financial Summary: Profit Margin and Cost Structure
Financial Summary：Profit Margin and Cost Structure ■Profit Margin ■Cost Structure (Apr. 2008 - Jun. 2008) (Operating income/ Net Operating revenues) 60% Strategically 50% 50% Fixed costs and costs 48% controllable costs 50% 45% correlated to the number of accounts 40% Commission to 34% stock exchang
Slide 13: Financial Summary: Quarterly Trends in Income Statement
Financial Summary：Quarterly Trends in Income Statement (in million yen) FYE FYE Mar.31, 2007 FYE Mar.31, 2008 Mar.31, 2009 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q Brokerage commissions 6,023 4,687 4,504 5,395 4,228 4,160 4,022 3,692 3,505 Underwriting and distribution commissions 61 58 286 32 19 77 5 9 1 Subscri
Slide 14: Financial Summary: Quarterly Trends in SG&A
Financial Summary：Quarterly Trends in SG&A (in million yen) FYE FYE Mar.31, 2007 FYE Mar.31, 2008 Mar.31, 2009 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q Transaction-related expenses 1,661 1,551 1,482 1,532 1,361 1,310 1,151 1,099 1,182 Commissions paid 237 219 214 217 231 248 245 233 238 Exchange and association d
Slide 15: 2. Strategies
1. Financial Results 2. Strategies 3. Businesses 4. To our Shareholders 5. Appendix 14
Slide 16: Mission Statement
Mission Statement Take position as an integrated financial service provider for individual investors, not just as an online brokerage firm Propose products and services to investors who are not active traders seeking market conditions Offer comprehensive products and services with “World Class
Slide 17: The Monex Group
The Monex Group （As of July 25, 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 Investment
Slide 18: Current Domestic Environment Recognition
Current Domestic Environment Recognition ■Increasing Asset Management by Individuals Financial Assets Held by Households (End of Mar.2008) Private Bonds Mutual FundsShares Equities Others 3.0 4.2 5.1 4.2 4.5 With Japanese population having started to decline Insurance Currency & Deposits and economi
Slide 19: Business Model and Strategy
Business Model and Strategy Our view of major areas of growth in the future Our aim as a financial institution in the future To become a TECHNOLOGY-BASED GLOBAL RETAIL Asset financial service provider Overseas Markets Online Trading Management Business (i.e. China, India) Growth Space and Busines
Slide 20: Overseas Businesses: Entering the Overseas Markets
Overseas Businesses：Entering the Overseas markets ■From Business Investigation to ■Accumulation and Analysis of the Latest Business Development in China and India Financial Information in the United States ◆Opened the Beijing Representative Office and Started investigation of business in China ◆ Act
Slide 21: 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） Profit margin
Slide 22: 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) Comparison of other online securities 4Q of FYE Mar. 2008 Matsui (Consolidated) Rakuten Securities 4Q of FYE Mar. 2008 Holdings ・ Low percentage of dependency on brokerage busines
Slide 23: 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 【Current Structure (1Q of FYE Mar. 2009)】 Direction of Each Business Line 【Future Structure】 Investment Banking （Overseas Business development plan is not included
Slide 24: 3. Businesses
1. Financial Results 2. Strategies 3. Businesses 4. To our Shareholders 5. Appendix 23
Slide 25: 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 ■Improvement and Enhancement of Services Introducing U.S. ETFs and Stocks from Summer 2008 ◆Monex Trader Mobile service started to support ◆A wide variety of ETFs and stocks increasing transacti
Slide 26: Fixed Income Business
Fixed Income Business ： Increasing revenue due to high demands of foreign currency products ■Offering Products and Investment Opportunities to ■Increase of Revenue and Promoting Cross sell Meet Customer Needs ◆ Increase in revenue from the Fixed Income Business ◆High Yield Currency Notes ・Sharp incr
Slide 27: FX Business: Aiming for No.1 in the industry
FX Business: Aiming for No.1 in the industry ■ FX Business Strategy ■FX Business Overview of Monex, Inc. ◆ Monex, Inc. to start a new FX service (after fall 2008) Margin Balance Commission Revenue (million yen) (million yen) ・More flexibility in enhancement of services by in-house 50,000 800 system
Slide 28: Mutual Fund Business: No.1 Online mutual fund sales
Mutual Fund Business： No.1 Online mutual fund sales ■Strengthen Product Lines and Services ■Top-class Online Mutual Fund Sales to Expand Mutual Fund Balance ◆Sales volume and balance ◆Keeping the top position in online mutual fund sales （billion yen Assets in custody by category and monthly sales vo
Slide 29: Alternative Investment Business: Development of institutional business
Alternative Investment Business： Development of institutional business ■ Distinctive Product lineup for retail investors http://www.monexai.com/english.php ◆ Asia Focus ■ Product Development for Institutional Investors ・Diversified FoHF portfolio of ex-Japan Asia and Japan ・Annualized return since i
Slide 30: Investment Banking Business
Investment Banking Business ： Aiming to make revolutionary change in the capital markets ■ Investment Banking Business at Monex, Inc. ■M&A Advisory Business ◆Participation in IPO Deals *Based on underwriting date http://www.wrh.co.jp/ Total IPOs Participated Participation IPOs Ratio ◆Commitment to t
Slide 31: Intelligence Infrastructure
Intelligence Infrastructure: Providing information and investment advice tools to improve ROI of our customers ■Online Investment Advice Services ■Continuous Seminars and e-learning Services ◆Building the “Intelligence Infrastructure” to support ◆Educational Seminars ( from April 2008 to June 2008 )
Slide 32: Other Financial Businesses
Other Financial Businesses ■Trade Science becomes fully owned subsidiary ■ Kabu-Robo Project ◆ Monex Group, Inc. Acquired 100% Shares of Trade Science Kabu-robo (Automated stock trading program) Project - In July 2008, Monex Group, Inc. acquired remaining 66.3% Investment services by “cyber fund man
Slide 33: 4. To our Shareholders
1. Financial Results 2. Strategies 3. Businesses 4. To our Shareholders 5. Appendix 32
Slide 34: ROE and Dividend
ROE and Dividend ■Pursuing Investment Return to Our Shareholders ◆ROE ◆Dividend Payout Policy ・Calculation formula (since FYE March, 2008) 40% Approx. 50% of consolidated net income of the Company’s current fiscal year ・Interim dividends to be paid out 30% ◆Dividend Record ・For FYE March 2008, JPY90
Slide 35: 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 March 2008) 2,500,000 250,000 Major shareholders Top 3 shareholders Financial Institutions 4.89% Nikko Citi Holdings Inc.
Slide 36: 5. Appendix
1. Financial Results 2. Strategies 3. Businesses 4. To our Shareholders 5. Appendix 35
Slide 37: Additional Data (Monex, Inc.)
20 0 5 10 15 20 25 30 35 40 45 0 100 200 300 400 500 600 700 20 07 07 /4 /7 20 20 07 07 /5 /8 20 07 20 /6 (100 million yen) 07 (100 million yen) /9 20 07 20 /7 07 20 /1 07 0 /8 20 20 07 07 /1 / ◆Cash Inflow/Outflow 1 20 9 ◆Stock Inflow/Outflow 20 07 07 /1 /1 20 0 2 07 20 /1 08 20 1 /1 07 /1 20 2 08
Slide 38: Customer Portfolio of Monex, Inc. (as of March 31, 2008)
Customer Portfolio of Monex, Inc. (as of March 31, 2008) ■Sex ■District Others Female 23.1% 25.2% Tokyo Metropolitan District Nagoya District 50.6% Male 8.4% 74.8% Osaka District 17.9% ■Age ■Occupation Company Employees 員 47.8% Over 70 上 3.1% Not employed し 16.8% 60s 代 10.9% Self-employed 業 9.5% 50s