Monex Group, Inc. · TSE:8698
Monex — 1H FYE March 2009 Earnings Presentation
40 slides from Monex's earnings presentation, Oct 29, 2008
Slide 1: Financial Results of 1H of Fiscal Year Ending March 31, 2009
October 29, 2008 Financial Results of 1H 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 wi
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 ■2Q(Jul.-Sep.) of FYE Mar. 31, 2009 Financial Overview Net operating revenues 5,859 million yen -2.1% from 1Q of FYE Mar. 31, 2009 ・Brokerage commissions 2,612 million yen -25.5% from 1Q of FYE Mar. 31, 2009 ・Financial income 2,112 million yen 82.1% from 1Q of FYE Mar. 31, 2009
Slide 7: Highlights of 2Q (1) Net Operating Revenues
Highlights of 2Q (1) Net Operating Revenues ■Increasing/Decreasing factors in net operating revenues of 2Q FYE2009 vs. 1Q FYE2009 ◆Financial income increased, but brokerage commissions and mutual fund sales commissions decreased Decrease by 128 million yen (-2.1%) Major increasing factors from 1Q
Slide 8: Highlights of 2Q (2) SG&A and Extraordinary Losses
Highlights of 2Q (2) SG&A and Extraordinary Losses ■Increasing/Decreasing factors in SG&A of 2Q FYE2009 vs. 1Q FYE2009 Advertizing expenses and system related costs increased compared to 1Q, but the total SG&A slightly decreased Increase by 18 million yen (-0.5%) from 1Q of FYE Mar. 31, 2009 Majo
Slide 9: Highlights of 2Q (3) Balance Sheet
Highlights of 2Q (3) Balance Sheet ■Major increasing/decreasing factors Total assets as of Sep. 30, 2009 284.8 billion yen (-79.9 billion yen [-21.9%]) ◆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 liab
Slide 10: Financial Summary: 1Q vs. 2Q of FYE Mar. 31, 2009
Financial Summary : 1Q of FYE Mar. 31, 2009 vs. 2Q of FYE Mar. 31, 2009 (in million yen, %) 1Q of FYE 2Q of FYE Mar. 31, 2009 Mar. 31, 2009 Change (Apr. 2008-Jun. 2008) (Jul. 2008-Sep. 2008) Operating Revenues 7,370 6,581 -10.7％ Net Operating Revenues 5,987 5,859 -2.1％ SG&A 3,933 3,915 -0.5％ Operati
Slide 11: Financial Summary: 1H FYE 2008 vs. 1H FYE 2009
Financial Summary : 1H of FYE Mar. 31, 2008 vs. 1H of FYE Mar. 31, 2009 (in million yen, %) 1H of FYE 1H of FYE Mar. 31, 2008 Mar. 31, 2009 Change (Apr. 2007-Sep. 2007) (Apr. 2008-Sep. 2008) Operating Revenues 15,746 13,952 -11.4％ Net Operating Revenues 13,931 11,847 -15.0％ SG&A 7,112 7,849 10.4％ Op
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% Total Trading Value 20,000 1,600 50% of Individual Investors 40% in 3 major stock exchanges and JASDAQ 30% 18% 17% 19% 18,000 (Average per business
Slide 13: Financial Summary: Profit Margin and Cost Structure
Financial Summary：Profit Margin and Cost Structure ■Profit Margin ■Cost Structure (Jul. 2008 - Sep. 2008) (Operating income/ Net Operating revenues)* 60% Strategically 50% 50% Fixed costs and costs controllable costs 50% 45% correlated to the number of accounts 40% Commission to 34% 33% stock exchan
Slide 14: Financial Summary: Quarterly Trends in Income Statement
Financial Summary：Quarterly Trends in Income Statement (in million yen) FYE Mar.31, 2007 FYE Mar.31, 2008 FYE Mar.31,2009 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q Brokerage commissions 6,023 4,687 4,504 5,395 4,228 4,160 4,022 3,692 3,505 2,612 Underwriting and distribution commissions 61 58 286 32 19 77 5 9 1
Slide 15: Financial Summary: Quarterly Trends in SG&A
Financial Summary：Quarterly Trends in SG&A (in million yen) FYE Mar.31, 2007 FYE Mar.31, 2008 FYE Mar.31,2009 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q Transaction-related expenses 1,661 1,551 1,482 1,532 1,361 1,310 1,151 1,099 1,182 1,172 Commissions paid 237 219 214 217 231 248 245 233 238 214 Exchange and a
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 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 watching market conditions Offer comprehensive products and services with “World
Slide 18: The Monex Group
The Monex Group （As of September 30, 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 Invest
Slide 19: Current Domestic Environment Recognition
Current Domestic Environment Recognition Financial Assets Held by Households (End of Jun.2008) ■Increasing Asset Management by Individuals Bonds Investment Shares Private Equities 2.9 Trusts Others 4.4 5.5 4.0 4.3 With the Japanese population having started to decline and Insurance Currency & Depo e
Slide 20: 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 Asset TECHNOLOGY-BASED GLOBAL RETAIL Foreign Markets financial service provider Online Trading Management Business (i.e. China, India) Future growth and management policy O
Slide 21: Key Strategies in the Next 5 Years
Key Strategies in the Next 5 Years ■Enhance Online Trading Capabilities in the Short-term and Expand Asset Management Business in the Mid- term European European European European European Euro Bond Currency Stock ETF Mutual Fund Fund Exotic Chinese Asian HK ETF Asian Bond Asian Fund Currency Stock
Slide 22: Foreign Business Development: Measures to Enter Foreign Markets
Foreign Business Development：Measures to be Taken to Enter Foreign Markets ■From Business Investigation to Business ■Analysis and Accumulation of the Latest Financial Development in China and India Information in the United States ◆Establishment of the Beijing Representative Office, ◆ Active accumul
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) 2. 5% Matsui (Consolidated) Comparison of other online securities 1Q of Mar. 2009 ・ Low percentage of dependency on brokerage business MUFG ・ Low percentage of SG&A per customers’ assets (Consolidated) 2. 0% in custody
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 (2Q 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 ◆U.S. ETFs and stocks business started August 2008 ◆Trading volume of futures/options increase ・Number of accounts reached 8,000 in two months ・Number of tr
Slide 28: Fixed Income Business: Increased Demands, Starting New Service
Fixed Income Business ： Increased Demands, Starting New Service ■Enrich Fixed Income Services ■Revenue from Fixed Income and Fostering Cross sell ◆Increasing needs for fixed income ◆ Revenue in fixed income business ・Growing needs for investment in notes, in the current million yen ※Including the ex
Slide 29: FX Business: Increasing Profits in a Growing Market
FX Business: Increasing Profits in a Growing Market ■ FX Services provided by Monex ■FX Business Overview of Monex Inc. and Monex FX, Inc. Margin Balance (million yen) ◆ Improve accessibility for all customers who wish to trade FX 35,000 ・Investors can trade FX at Monex FX, Inc., a FX specialized 30
Slide 30: Mutual Fund Business: Top-class online 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: 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 (As of Aug. 31, 2008) ■ Product Development for Institutional Investors ・Diversified FoHF portfolio of ex-Japan Asia and Japan ・Ann
Slide 32: Investment Banking Business: Aiming to make revolutionary change in the capital markets
Investment Banking Business ： Aiming to make revolutionary change in the capital markets ■ IPO Underwriting and Related Business in Monex, Inc. ■M&A Advisory Business ◆Participation in IPO Deals http://www.wrh.co.jp/ First Half Comparison for 2007,2008 and 2009 *Based on underwriting date ◆“Success
Slide 33: Intelligence Infrastructure: Launch of real time reporting
Intelligence Infrastructure: Launch of real time reporting at the same level as reports for institutional investors ■Formulation to provide financial information ■Developing a “Intelligence Infrastructure” tool, and continuous seminars and e-learning services ◆Providing valuable information and know
Slide 34: Other Financial Businesses
Other Financial Businesses ■Trade Science becomes fully owned subsidiary ■Development ■ of Next Generation Contact Center ◆Establishment of New Contact Center in Hachinohe City - Operations at the Hachinohe Contact Center was launched in the end of September, 2008 with 16 operators ◆ Monex Group, In
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 to Our Shareholders ◆ROE ◆Dividend Payout Policy 40% ・Calculation formula (since FYE March, 2008) Approx. 50% of consolidated net income of the Company’s current fiscal year ・Interim dividends to be paid out 30% ◆Dividend Record ・Since the profit level o
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.)
(100 (100 20 0 5 10 15 20 25 30 35 40 45 20 0 100 200 300 400 500 600 07 07 /7 （億円） （億円） /1 20 0 07 20 /8 07 20 /1 07 1 / million yen) million yen) 20 9 20 07 07 /1 /1 2 20 0 07 20 /1 08 / 1 20 1 07 20 /1 2 08 / ◆Cash Inflow/Outflow 20 2 ◆Stock Inflow/Outflow 08 /1 20 20 08 08 / 3 /2 20 20 08 08 /3
Slide 40: Customer Portfolio of Monex, Inc. (as of September 30, 2008)
Customer Portfolio of Monex, Inc. (as of September 30, 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 Employee 47.0% Over 70 3.2% Unemployed 17.4% 60s 11.2% Housewives 10.1% 50s 16.3% Self
Monex Group — 1H FYE March 2009 Earnings Presentation on 6ix