Slide 1: Financial Results Fiscal Year Ended March 31, 2006
Financial Results Fiscal Year Ended March 31, 2006 April 26, 2006 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 for FYE March 2006. If there is any
Slide 2: Table of Contents
Table of Contents 1. Financial Results 2. Business Model and Future Development ■ Summary ・・・ 2 ■ Mission Statement ・・・ 12 ■ Recognition of Environment and Monex’s Positioning ・・・ 13 Financial Summary ■ Competition Analysis ～Concrete Policies～ ・・・ 14 ■ FYE Mar. 31, 2005 ■ Investor’s Education ・・・ 15
Slide 3: Summary
Summary 1. Operating revenues, ordinary income and net income are in top condition ! Operating revenues 39,223 million yen （80.6% up*） ! Ordinary income 24,938 million yen （171.7% up*） ! Net income 13,617 million yen （92.3% up*） *Percentage changes : year-on-year 2. Diversification of revenue source
Slide 4: 1. Financial Results
1. Financial Results 2. Business Model and Future Development 3
Slide 5: Financial Summary: FYE Mar. 2005 vs. FYE Mar. 2006 (12 months)
Financial Summary:FYE Mar. 31, 2005 vs. FYE Mar. 31, 2006 (in 12 months) (in million yen, %) FYE Mar. 31, 2005 FYE Mar. 31, 2006 Change (Apr. 2004-Mar. 2005) (Apr. 2005-Mar. 2006) Operating Revenues 21,716 39,223 +80.6% Net Operating Revenues 20,690 37,811 +82.7% SG&A 11,424 12,636 +10.6% Operating
Slide 6: Financial Summary: 4Q FYE Mar. 2005 vs. 4Q FYE Mar. 2006
Financial Summary:4Q of FYE Mar. 31, 2005 vs. 4Q of FYE Mar. 31, 2006 (in 3 months) (in million yen, %) 4Q of FYE 4Q of FYE Mar. 31, 2005 Mar. 31, 2006 Change (Jan. 2005-Mar. 2005) (Jan. 2006-Mar. 2006) Operating Revenues 6,533 11,995 +83.6% Net Operating Revenues 6,340 11,686 +84.3% SG&A 3,004 3,66
Slide 7: Financial Summary: 3Q vs. 4Q of FYE Mar. 2006
Financial Summary:3Q of FYE Mar. 31, 2006 vs. 4Q of FYE Mar. 31, 2006 (in 3 months) (in million yen, %) 3Q of FYE 4Q of FYE Mar. 31, 2006 Mar. 31, 2006 Change (Oct. 2005-Dec. 2005) (Jan. 2006-Mar. 2006) Operating Revenues 12,031 11,995 -0.3% Net Operating Revenues 11,642 11,686 0.4% SG&A 3,323 3,662
Slide 8: Financial Highlights (Quarterly Basis)
Financial Summary : Financial Highlights (Quarterly Basis) Net Operating Revenues SG&A （in million yen) （in million yen) Record High on a 12,000 The increase of SG&A resulted 12,000 Quarterly Basis 11,642 11,686 mainly from intensive marketing campaigns 8,706 8,000 8,000 5,774 3,323 3,662 4,000 4,00
Slide 9: High Profitability through the Strict Cost Control
Financial Summary : High Profitability through the Strict Cost Control SG&A and Number of Executed Trades Profitability (Operating Income/Operating Revenues) （in million yen) （number of executed orders) 80% Stably-maintained 10,000 Total SG&A 160,000 Stably-maintained high high profitability profita
Slide 10: Comparison with Competitors: Revenues/SG&A Per Customers' Assets in Custody
Comparison with Competitors：Revenues/SG&A Per Customers’ Assets in Custody (Annualized) Matsui MatsuiSecurities Securities(consolidated) (consolidated) 3.50% 3Q 3Qof ofFYE FYEMar. Mar.2006 2006 Management Index : High Revenues/Low SG&A per customers’ assets in custody 3.00% Operating revenues per cu
Slide 11: Reference: Individual Investor's Trend
< Reference > Individual Investor’s Trend The Trend of Individual Investors in Japan The ratio of individual investors is increasing steadily as the total trading value is The Ratio of Inte rne t Trading Value increasing. It has reached 30% of total trading value in market dealings at present. among
Slide 12: 2. Business Model and Future Development
1. Financial Results 2. Business Model and Future Development 11
Slide 13: Mission Statement
Mission Statement " Take position as a total financial service provider, not just as an online brokerage firm " Offer comprehensive products and service line-ups with “World Class Quality” " Support passive investors to manage his/her financial assets efficiently " Strengthen “Products Origination C
Slide 14: Recognition of Environment and Monex's Positioning
Recognition of Environment and Monex’s Positioning As the population in Japan started decreasing and its economic growth has slowed down, its social structure and his/her values have started to change. 【Axis of Change】 ≪Present≫ ≪Future≫ Environment "Social Structure Life after retirement Individual
Slide 15: Competition Analysis: Our Strategies
Competition Analysis : Our Strategies 【Feature of budget “2006” 】 "Marketing # Budget: 7% of net operating revenue "Investor’s Education # Budget: 3% of net operating revenue !Improve corporate recognition by increasing advertisement ! Continuously committed to investor’s education since Company’s f
Slide 16: Investor's Education: In-depth Investment Education for All Individual Investors
Investor’s Education : In-depth Investment Education for All Individual Investors Reasons for our Investor’s Education Initiatives ・The more inexperienced individuals investors coming into the market, the greater needs of self-asset management ・The greater the customers’ financial literacy, the high
Slide 17: Current and Future Revenue Structure
Current and Future Revenue Structure: Diversify Revenue Source Responding to Changes in the Composition of Assets under Custody 【Assumptions of Revenue Structure Change】 Increasing assets under custody by Developing businesses other than Reduce revenue volatility attracting baby boomers and brokerag
Slide 18: Strategic Cost Management
Strategic Cost Management: Low cost structure is the source of competitiveness as a financial institution Control of SG&A Expenses Control of Cost of Funding ◆ Differentiated services and rigid control of expenses realize ◆Lowering cost of funding by utilizing stock lending both high profit and low
Slide 19: Brokerage Business: Providing the Best Trading Platform
Brokerage Business: Providing the Best Trading Platform Gomez “Useful Functions and Services” Division No.1 and Online Securities The Overall Ranking No.2 Awarded! Ranking Providing Investment Information and Mail Services only Monex can provide Expanding Original Services "Monex Night Time Trading
Slide 20: Reinforcement of Systems and Business Continuity Plan
Reinforcement of Systems and Business Continuity Plan Reinforcement of Systems is Prepared for Volume Increase Business Continuity Plan （# of accounts） 10 thousand 120 ◆In case of database failure Number of Accounts 100 Capacity of System Switching to back-up system promptly enables us to recover 80
Slide 21: Underwriting Business
Underwriting Business: Attractive Features for Building up Individual’s Risk Money and Expanding Accounts Our Principle and Strategy of Underwriting Business ◆ Fair Allocation of IPO shares to Every Customer through “Advanced Payment” Book Building and “Lottery” Allocation Track Records Lead Managed
Slide 22: Fixed Income and FOREX Business
Fixed Income and FOREX Business : Focus for FYE Mar. 2007 BONDS Focusing on Investor Driven Fixed Income Business !Fixed Income Investment could be more attractive in consideration of signs of Proportion Proportionof of First-time First-timebuyer, buyer, classified classifiedby byage age rise in Jap
Slide 23: Mutual Fund Business: Front-Runner among Online Mutual Fund Distributors
Mutual Fund Business：Front-Runner among Online Mutual Fund Distributors Steady Growth of Assets in Custody Monthly Administration Fee Doubled in One Year billion yen 120 Customer's Assets in Custody millio n ye n 110 50 48.2 100 44.6 45 43.1 109 billion yen [as of Mar.31,2006] Administration Fee 90
Slide 24: New Asset Management Services
New Asset Management Services: Innovative Opportunity for Passive Investors First Full-fledged Alternative Investment Fund “Kaburobo” / SMA Investment Trust : “Asia Focus” [Launched in Jul.2005] ◆Trade Science Corporation Total Fund Size : Approx. 10.1 billion Jointly established with Waseda Informa
Slide 25: Expanding Our Customer Base
Expanding Our Customer Base: New Business Channels by Alliance During FYE Mar. 2007, we plan to invest 7% of net operating Business Partners During FYE Mar. 2007, we plan to invest 7% of net operating income in marketing activities and will increase ads and income in marketing activities and will in
Slide 26: Competitive Services and Products
Competitive Services and Products: For All Customers’ Satisfaction [As of April 26, 2006] Fixed Alternative Equity Mutual Fund Others Income Investments Stock Small Unit In-house Night Time JGB Monthly Credit Trading Lending China/India Stop Loss China High Low Commodities ATM Margin U.S. Stock Trad
Slide 27: Corporate Governance
Corporate Governance： Pursuit of Managing Various Risks concerning Business and Business Operations Our System of Corporate Governance Reinforcement of crisis-management system ◆Internal audit activity ◆Alliance with outside legal counsel ・Independent internal audit department as core function ◆Esta
Slide 28: To Our Investors
To Our Investors Diversified Shareholder’s Portfolio Dividends 【March 31, 2005】 【March 31, 2006】 ◆Expected Dividends for Fiscal Year Ending March 2006 Number of Shareholders: 38,124 Number of Shareholders: 48,930 1,500 yen (planned)←Triple of previous dividend payment Others excluding ※MBH’s main so
Slide 29: Strengthened Management Organization
Strengthened Management Organization - 3 core axises - Ⅰ．Board Members Ⅱ．New Advisory Board ◆Aspiring to be a “Premium Financial Service Institution”: ◆Consultation from diversified point of views from Inviting 2 external board members with expertise in the various fields Financial Business to our b
Slide 30: The MBH Group
The MBH Group % = investment ratio 100% 100% 33.3% Premium Online Financial Institution Discovery and Incubation of New Businesses Aspiring to introduce a new IPO system 34% MBI 70％ 51％ Monex Busuiness Incubation, Inc. 【Established September, 2005】 【Established September 2006】 【Established May 2005