Monex Group, Inc. · TSE:8698
Monex — SPAC Merger (October 2022)
27 slides from Monex's SPAC merger presentation, Oct 28, 2022
Slide 1: Financial Results for 2Q of Fiscal Year Ending March 31, 2023
Financial Results for 2 Q of Fiscal Year Ending March 31, 2023 October 28, 2022 Monex Group TSE Prime : 8698
Slide 2: I. Highlights
MONEX GROUP I. Highlights
Slide 3: Highlight: Focus areas of each major subsidiary
Highlight Focus areas of each major subsidiary Crypto Asset Segment Planning NASDAQ listing with De - SPAC transaction Global expansion strategy 2
Slide 4: Financial interest impact and advertising expenses
Financial interest impact and advertising expenses 3 Advertising expense 1Q of FYE Mar. 31, 2023 → 2Q of FYE Mar. 31, 2023 Crypto asset \ 591M → \ 382M Advertising expenses Each subsidiary actively uses advertising and promotion to expand its customer base but began controlling the amount of expense
Slide 5: Growth Strategy of Coincheck (Crypto Asset Segment)
Growth Strategy of Coincheck (Crypto Asset Segment) Coincheck Group (CCG)* 1 is proceeding with listing procedures. 4 - After the proposed business combination with Nasdaq - listed SPAC, Thunder Bridge Capital Partners IV, Inc. (THCP), CCG is planned to go public on Nasdaq. (Termination date of Busi
Slide 6: II. Consolidated Performance
Ⅱ . Consolidated Performance 5
Slide 7: Highlights 2Q of FYE Mar. 2023 (3 months)
Highlights 2Q of FYE Mar. 2023 (3 months) 6 Japan US Crypto Asset Asia Pacific Investment * Segment profit/loss = Pre - tax profit/loss. The same hereinafter . Challenging crypto asset market environment affected trading volume and segment loss was \ 0.4B .
Slide 8: QoQ Comparison (3 months) Segment Performance
QoQ Comparison (3 months) Segment Performance 7 (JPY million) Crypto Asset 2023/3 1Q 2023/3 2Q Total operating revenue after deducting financial expenses and cost of sales 3,162 1,563 SG&A 2,682 1,890 Advertisement Expenses 591 382 The amount equivalent to operating income 479 - 328 Other income / e
Slide 9: QoQ Comparison: Operating Revenue
QoQ Comparison (3 months) Analysis: Operating Revenue Crypto: Total revenue decreased driven by reduction in net trading income as trading volumes were affected by challenged crypto market. Quarterly total operating revenue after deducting financial expenses and cost of sales - 50.6% （ - 1,599 ） * F
Slide 10: QoQ Comparison: SG&A
QoQ Comparison (3 months) Analysis: SG&A Crypto: Total SG&A expenses decreased QoQ due to responsible management of advertising resources in response to current market conditions. SG&A Total - 29.5 ％ ( - 792 ) * Professional fees related De - SPAC \ 560 → \ 167 ■ Others ( - 484 ) * ■ Advertising exp
Slide 11: YoY Comparison (6 months) Segment Performance
YoY Comparison (6 months) Segment Performance 10 (JPY million) Crypto Asset 2022/3 2Q 2023/3 2Q Total operating revenue after deducting financial expenses and cost of sales 20,434 4,724 SG&A 6,686 4,572 Advertisement Expenses 2,700 973 The amount equivalent to operating income 13,748 152 Other incom
Slide 12: YoY Comparison: Operating Revenue
YoY Comparison (6 months) Analysis: Operating Revenue Crypto: Significant decrease in net trading income due to the decline in crypto asset values, resulting in lower trading volumes. * (JPY million) ■ Others ( - 44) ■ Net trading income ( - 15,666 ) * Total operating revenue after deducting financi
Slide 13: YoY Comparison: SG&A
YoY Comparison (6 months) Analysis: SG&A Crypto: Advertising expenses have decreased by over 60% through responsible management of advertising resources in response to current market conditions. SG&A Total - 31.6 ％ ( - 2,114 ) ■ Others ( - 257 ) * ■ Advertising expenses ( - 1,728) ■ Communication, f
Slide 14: I. Business Update
MONEX GROUP I. Business Update
Slide 15: Business Update Crypto Asset Segment 1/5
Business Update Crypto Asset Segment 1/5 14 Coincheck has maintained its leading position by steadily acquiring users despite the sluggish crypto asset market. No.1 domestic market share for three consecutive years (by app DLs) *1 5.33M DLs (+133K QoQ ) No.1 position in Japan *1 Among Japanese crypt
Slide 16: Business Update Crypto Asset Segment 2/5: NFT business
Business Update Crypto Asset Segment 2/5 15 NFT business revenue for the quarter was \ 160M due to headwinds in the NFT market. Revenue model 1. From primary market Coincheck purchases NFTs from IP holders and sells them on the platform. (BtoC) 2. From secondary market Revenue from user - to - user
Slide 17: Business Update Crypto Asset Segment 3/5: Metaverse/Web3
Business Update Crypto Asset Segment 3/5 16 Coincheck intends to create and expand its digital economic sphere with an eye on Web3. Metaverse/Web3 Oasis TOKYO ・ Oasis KYOTO ・ Oasis MARS • Kenji Kohashi was appointed creative director of "Oasis TOKYO.” • Pre - opening of "Oasis KYOTO“ in Sep. 2022. •
Slide 18: Business Update Crypto Asset Segment 4/5: Coincheck Labs
Business Update Crypto Asset Segment 4/5 17 Through Coincheck Labs, Coincheck supports startups related to crypto assets and NFTs that are leading the adoption of Web3. Coincheck Labs Coincheck Labs Coincheck Labs helps the blockchain and Web3 ecosystem in Japan thrive by supporting entrepreneurs, s
Slide 19: Business Update Crypto Asset Segment 5/5: growth opportunities
Business Update Crypto Asset Segment 5/5 18 Coincheck has identified numerous large growth opportunities that can be pursued organically and accelerated through M&A or partnerships. NFTs Financial services adjacencies Marketplace / IEO Continue to grow customer base and revenue to retain #1 market s
Slide 20: Appendix: Group Overview
MONEX GROUP Appendix: Group Overview
Slide 21: Appendix: Highlights 2Q of FYE Mar. 2023 (3 months) 2/3
Appendix: Highlights 2Q of FYE Mar. 2023 (3 months) 2/3 20 Crypto Asset ◆ Total operating revenue after deducting financial expenses and cost of sales, and Segment profit (JPY Million) 7,695 5,027 3,160 3,162 1,563 4,831 1,116 - 1,072 415 - 391 -10,000 0 10,000 2022/3 2Q 2022/3 3Q 2022/3 4Q 2023/3 1
Slide 22: Overview of Monex Group and Main Subsidiaries
■ Coincheck, Inc. (Tokyo, Japan) Crypto asset Exchange/Marketplace agency • President: Satoshi Hasuo • Founded in 2012, joined Monex Group in Apr. 2018 • Cryptocurrencies available: Bitcoin (BTC), Ethereum (ETH), Ethereum Classic (ETC), Ripple (XRP), NEM (XEM), etc. • # of verified users: 1.75 milli
Slide 23: Group Overview
Group Overview of the Group Listed Holding Company Coincheck, Inc. Offering Coincheck, a crypto asset exchange Crypto Asset Exchange Agency 22 © Monex Group, Inc. [ Crypto Asset Segment ] (As of Sep 30, 2022)
Slide 24: Group Overview - Revenues, Costs, and Employees
Group Overview - Revenues , Costs, and Employees ■ Japan Segment ■ US Segment ■ Crypto Asset Segment ■ Asia Pacific Segment ■ Investment Segment * Refer to the databook for FYE Mar 2022 23 Total operating revenue after deducting financial expenses \ 83.6 B 34 % Selling, general and administrative ex
Slide 25: Appendix: Valuation in Fair Value of Monex Group
Appendix: Valuation in Fair Value of Monex Group Data for the valuation of fair value based on the Sum - of - the - Parts method Calculated by adding up the fair value of the subsidiaries using the sum - of - the - parts method. Target subsidiaries are Monex, Inc., Coincheck, TradeStation Group, Mon
Slide 26: Disclaimer
Disclaimer 25 About Coincheck Important Information About the Business Combination and Where to Find It In connection with the proposed business combination in connection with to the business combination agreement among Coincheck , I nc. (“Coincheck”), Coincheck Group B.V. (“CCG”), Thunder Bridge Ca
Slide 27: Slide 27