Slide 1: Financial Results for Fiscal Year Ending March 31, 2023
TSE Prime : 8698 Monex Group Financial Results for Fiscal Year Ending March 31, 2023 April 27, 2023
Slide 2: Corporate Philosophy
Corporate Philosophy Always a step ahead of the “Y” in “MONEY,” our name MONEX expresses our desire to embrace all people who are engaged at the forefront of our future. With state-of-the-art IT technology, globally universal values and a sense of professionalism, Monex Group designs innovative ways
Slide 3: Table of Contents
Corporate Philosophy p.1 Table of Contents p.2 Ⅰ. Highlights p.3 - p.9 Ⅱ. Consolidated Performance p.10 - p.30 Ⅲ. Business Update p.31 - p.50 Appendix: Group Overview p.51 -p.65 Disclaimer p.66 This is an English translation of Japanese presentation materials prepared in connection with the disclosu
Slide 4: I. Highlights
MONEX GROUP I . Highlights
Slide 5: Record Quarterly Operating Revenue and Income (US Segment)
Record Quarterly Operating Revenue and Income (US Segment) While trading commissions have contributed to earnings when interest rates remains low, gains from management of customer cash have increased when interest rates hiked. In 4Q of FYE Mar. 31 2023, TradeStation achieved record quarterly operat
Slide 6: Financial Interest Impact and Advertising Expenses
Financial Interest Impact and Advertising Expenses Financial interest impact Advertising expenses Gains from management of customer cash in US dollars at Monex Securities and The US Segment curbed advertising expenses due to a strategy shift from 2Q. TradeStation belong to the Monex Group. Customer
Slide 7: Consolidated Pre-tax Income (QoQ)
Consolidated Pre-tax Income (QoQ) Quarterly consolidated pre-tax income increased significantly (+ ¥1.8B) due to increased trading commissions and net financial income in the US Segment, recovery of crypto trading volume in the Crypto Asset Segment, return of profitability in the Investment Segment.
Slide 8: EBITDA (Quarterly)
EBITDA (Quarterly) The US Segment recovered its profitability since the strategy shift in Aug. 2022 to record ¥3.3B in quarterly EBITDA (¥6.5B for the full year). The Japan Segment generated stable cash flow, with quarterly EBITDA of ¥1.8B (¥8.5B for the full year). Consolidated Quarterly EBITDA* by
Slide 9: Strategy Overview for Major Segments
Strategy Overview for Major Segments Monex Securities, TradeStation, and Coincheck each have solid corporate value and strategy. By promoting each strategy, Monex Group will continue to strive to manifest those values and pursue the sustainable growth of its corporate value. Strengthened business Gr
Slide 10: Progress on Asset-Management Model Transformation (Japan Segment)
Progress on Asset-Management Model Transformation (Japan Segment) Total amount of assets associated with the mutual fund-related revenues increased steadily with both the transfer of mutual fund accounts from Shinsei Bank and the progress of our robo-advisory service. In line with this, mutual fund-
Slide 11: II. Consolidated Performance
Ⅱ. Consolidated Performance 10
Slide 12: Highlights 4Q of FYE Mar. 2023 (3 months)
Highlights 4Q of FYE Mar. 2023 (3 months) The US Segment achieved record operating revenues and income. IEO-related revenues contributed to a narrowing of the Crypto Asset Segment's loss. Consolidated pre-tax income was ¥2.2B. Although FX revenues declined due to lower market volatility, gains on ma
Slide 13: QoQ Comparison (3 months) Consolidated Performance
QoQ Comparison (3 months) Consolidated Performance FYE Mar. 2023 FYE Mar. 2023 3Q 4Q Rate of (JPY million) Variance Reference change (Oct. 2022 – Dec. 2022) (Jan. 2023– Mar. 2023) Total operating revenue after P14: Analysis of Japan segment deducting financial expenses and 18,072 19,033 +962 +5% P16
Slide 14: QoQ Comparison (3 months) Segment Performance
QoQ Comparison (3 months) Segment Performance Japan US Crypto Asset Asia Pacific Investment (JPY million) 2023/3 2023/3 2023/3 2023/3 2023/3 2023/3 2023/3 2023/3 2023/3 2023/3 3Q 4Q 3Q 4Q 3Q 4Q 3Q 4Q 3Q 4Q Total operating revenue after deducting Record 8,262 7,589 8,998 1,063 1,583 255 248 -314 209
Slide 15: QoQ Analysis: Operating Revenue (Japan)
QoQ Comparison (3 months) Analysis: Operating Revenue Japan: In addition to a decline in US equity-related revenues, FX revenues decreased due to lower market volatility. Mutual fund balances steadily grew. ■ Total operating revenue after deducting financial expenses Quarterly total operating revenu
Slide 16: QoQ Analysis: SG&A (Japan)
QoQ Comparison (3 months) Analysis: SG&A Japan: Depreciation costs increased with the launch of US equity margin trading service in Jan. 2023. Advertising expenses also increased with the resumption of annual large in-person seminars. ■ Total SG&A Quarterly SG&A Total +2.1％ (+148) * Figures in paren
Slide 17: QoQ Analysis: Operating Revenue (USD) US
QoQ Comparison (3 months) Analysis: Operating Revenue (USD) US: Commissions increased due to higher trading volume, particularly for options. Net financial income also increased as US interest rates continued to climb. Total revenue in 4Q was the highest ever. ■ Total operating revenue after deducti
Slide 18: QoQ Analysis: SG&A (USD) US
QoQ Comparison (3 months) Analysis: SG&A (USD) US: Controlled total SG&A to an appropriate level despite an increase of commissions paid due to higher trading volume. ■ Total SG&A Quarterly SG&A Total +2.1％ (+1,206) *Figures in parenthesis reflect the variance from previous quarter (USD thousand) (U
Slide 19: QoQ Analysis: Operating Revenue Crypto
QoQ Comparison (3 months) Analysis: Operating Revenue Crypto: Trading volumes increased due to higher average crypto asset values. The second IEO (FNCT) also contributed to the increase in revenue. ■ Total operating revenue after deducting financial expenses Quarterly total operating revenue after d
Slide 20: QoQ Analysis: SG&A Crypto
QoQ Comparison (3 months) Analysis: SG&A Crypto: Total SG&A expenses decreased QoQ as a result of advertising budget management in response to current market conditions. ■ Total SG&A Total SG&A -4.5％ (-81) (JPY million) * Figures in parentheses indicate the variance from the previous quarter (JPY mi
Slide 21: Highlights FYE Mar. 2023 (12 months)
Highlights FYE Mar. 2023 (12 months) Stable profit generation in the Japan Segment and successful performance improvement in the US Segment after the strategy shift mitigate lower revenue in the Crypto Asset Segment due to the sluggish crypto market. Consolidated pre-tax income was ¥4.7B. Stable gro
Slide 22: YoY Comparison (12 months) Consolidated Performance
YoY Comparison (12 months) Consolidated Performance FYE Mar. 2022 FYE Mar. 2023 Rate of (JPY million) Variance Reference (Apr. 2021 – Mar. 2022) (Apr. 2022 – Mar. 2023) change Total operating revenue after P23: Analysis of Japan segment deducting financial expenses and cost 83,549 73,316 -10,234 -12
Slide 23: YoY Comparison (12 months) Segment Performance
YoY Comparison (12 months) Segment Performance Japan US Crypto Asset Asia Pacific Investment (JPY million) 2022/3 2023/3 2022/3 2023/3 2022/3 2023/3 2022/3 2023/3 2022/3 2023/3 Total operating revenue after deducting Record 30,438 30,940 23,579 28,621 7,369 1,222 1,053 465 308 financial expenses and
Slide 24: YoY Analysis: Operating Revenue (Japan)
YoY Comparison (12 months) Analysis: Operating Revenue Japan: In addition to an increase in FX revenues and gains on management of US dollar deposits, increased revenues from account transferred from Shinsei Bank and business expansion such as IFA offset the decline in brokerage commissions due to t
Slide 25: YoY Analysis: SG&A (Japan)
YoY Comparison (12 months) Analysis: SG&A Japan: Although commissions paid increased in line with revenue growth from the operation of accounts transferred from Shinsei Bank, SG&A, including system investments, was appropriately controlled. ■ Total SG&A SG&A Total +7.5％ (+1,895) * Figures in parenth
Slide 26: YoY Analysis: Operating Revenue (USD) US
YoY Comparison (12 months) Analysis: Operating Revenue (USD) US: Total revenue increased 22.5% YoY due to a significant increase in net financial income as a result of higher interest rates. Annual revenue was the highest ever. Total operating revenue after deducting financial expenses and ■ Total o
Slide 27: YoY Analysis: SG&A (USD) US
YoY Comparison (12 months) Analysis: SG&A (USD) US: Significantly reduced advertising expenses and professional fees as part of the shift in strategy in 2Q of FYE Mar. 2023. However, compensation and benefits increased YoY, which includes the severance payments for the reduction in force conducted i
Slide 28: YoY Analysis: Operating Revenue Crypto
YoY Comparison (12 months) Analysis: Operating Revenue Crypto: Decrease in net trading income due to lower trading volumes resulting from the decline in crypto asset values and market transaction volume. Maintained the customer base and the the number of units of crypto assets held by customers incr
Slide 29: YoY Analysis: SG&A Crypto
YoY Comparison (12 months) Analysis: SG&A Crypto: Advertising expenses decreased about 77% YoY, by controlling advertising budget in response to current market conditions. ■ Total SG&A Total SG&A -45.7％ (-6,819) * Figures in parentheses indicate the variance from the previous year (JPY million) (JPY
Slide 30: History of Shareholders’ Distribution
History of Shareholders’ Distribution Shareholder Return Policy: Stable dividend payments and flexible buybacks of its own shares, while investing in the long-term growth. ◆ History of dividend per share ◆ Return on equity ratio (JPY) Five Years Average ROE 7.9% 18% Interim Year-end 17.3% 20 15% 13.
Slide 31: Investors’ Guide
Investors’ Guide Shareholders distribution Shareholders & indicators per share ◆ Our basic policy for shareholders distribution ◆ Major shareholders and shareholder breakdown (as of Mar. 31, 2023) To ensure shareholder return, we will consistently offer dividend of 7.5 yen or Monex Group, Inc. 0.6%
Slide 32: III. Business Update
MONEX GROUP IT. Business Update 31
Slide 33: Business Update Japan Segment 1/5
Business Update Japan Segment 1/5 Revenue stream has become more diversified at Monex Securities due to the steady increase of revenues other than Japan equities brokerage commissions. Total Operating Revenue at Monex Securities Financial income Forex and fixed income Others Mutual funds Brokerage c
Slide 34: Business Update Japan Segment 2/5
Business Update Japan Segment 2/5 Expanded the balance of mutual fund using periodic investment service. Gains on management of USD deposit contributes to the US equities related revenues. Mutual Funds US Equities Related Business • Announced a business partnership in the financial • Launched US equ
Slide 35: Business Update Japan Segment 3/5
Business Update Japan Segment 3/5 While the number of Japan equities service users are stable, the number of users trading mutual funds and US equities has steadily increased. Number of Unique Users by Product (Yearly) Japan Equties (cash trading) Mutual Funds US Equties (cash trading) FYE Mar. 2019
Slide 36: Business Update Japan Segment 4/5
Business Update Japan Segment 4/5 The IFA/wealth management business achieved its assets in custody to approximately ¥63B. Monex PB, Inc. established to stretch the wealth management business Assets in Custody Total Assets in ・Monex Securities launched an IFA business in Custody 2020 and a wealth ma
Slide 37: Business Update Japan Segment 5/5
Business Update Japan Segment 5/5 Our robo-advisory service awarded 1st and 2nd for fund wrap management performance in Japan. Total AUM of Monex Asset Management exceeded ¥200B as of Apr. 27 Asset Under Management ■ Robo-advisor service Total AUM ON COMPASS 1 184.9B Robo-advisor services (JPY Billi
Slide 38: Business Update US Segment 1/4
Business Update US Segment 1/4 Brokerage commissions increased in all asset classes, despite a lower VIX. Other commissions increased due to an increase in equities and options trading. Brokerage commissions and other commissions Futures trading remained strong as active traders traded actively desp
Slide 39: Business Update US Segment 2/4
Business Update US Segment 2/4 Interest income from customer deposits increased significantly as US interest rates continued to climb. Interest on customer cash Interest income from customer cash deposits belongs to TradeStation and is recorded as net financial income. A portion of interest earned i
Slide 40: Business Update US Segment 3/4
Business Update US Segment 3/4 Customer cash at TradeStation remains stable even after the collapse of Silicon Valley Bank. （USD Million） Customer cash 3,000 2,500 2,000 1,500 1,000 500 0 Apr-22 May-22 Jun-22 Jul-22 Aug-22 Sep-22 Oct-22 Nov-22 Dec-22 Jan-23 Feb-23 Mar-23 39
Slide 41: Business Update US Segment 4/4
Business Update US Segment 4/4 We capture active traders through organic marketing and third-party referral partners. Customers Revenue by Funnel Source ・Both organic customers revenue and third-party referral customers revenue are growing. ・Third-party referral customers revenue as a percentage of
Slide 42: Business Update Crypto Asset Segment 1/6
Business Update Crypto Asset Segment 1/6 Creating a digital asset ecosystem to diversify earnings over the mid- to long-term. Digital Asset Ecosystem Coincheck for Business Exchange/ Opened a dedicated consulting service for corporate clients in Marketplace response to their various crypto related n
Slide 43: Business Update Crypto Asset Segment 2/6
Business Update Crypto Asset Segment 2/6 No.1 share of app downloads for 4 consecutive years in Japan. Crypto asset exchange / marketplace No.1 domestic market share for Leading market share with 28%*2 The number of units of Bitcoin 4 consecutive years (by app DLs)*1 held by customers share of verif
Slide 44: Business Update Crypto Asset Segment 3/6
Business Update Crypto Asset Segment 3/6 Opened a dedicated consulting service for corporate clients to provide critical B2B services in response to corporates’ need to establish a crypto strategy. Coincheck for business overview Crypto needs of corporate clients ①NFT, web3 and Metaverse ・Purchasing
Slide 45: Business Update Crypto Asset Segment 4/6
Business Update Crypto Asset Segment 4/6 Diversifying our earnings based on the superiority of Exchange/Marketplace Exchange/Marketplace-IEO NFT/Metaverse ・Conducted 2nd IEO (FNCT) ・Launched metaverse×NFT community The amount of purchase applications for IEO of “OASIS” based on the concept of 2035 n
Slide 46: Business Update Crypto Asset Segment 5/6
Business Update Crypto Asset Segment 5/6 Coincheck Group (CCG)*1 is proceeding with listing procedures. We plan to be listed on Nasdaq to secure global talent and business opportunities - After the proposed business combination with Nasdaq-listed SPAC, Thunder Bridge Capital Partners IV, Inc. (THCP)
Slide 47: Business Update Crypto Asset Segment 6/6
Business Update Crypto Asset Segment 6/6 Coincheck has identified numerous large growth opportunities that can be pursued organically and accelerated through M&A and partnerships. Deepen Existing Broaden Digital Asset Offerings Solutions Marketplace / NFTs web3 Institutional Financial On-ramp Intern
Slide 48: Business Update Asia Pacific and Investment Segment
Business Update Asia Pacific and Investment Segment The Social Impact Investment Fund, managed by our affiliate, completed its first offering with a total of ¥3.1B under management, with multiple investments from the Tokyo Metropolitan Government, etc. Asia Pacific Segment Investment Segment Monex S
Slide 49: Business Update New Businesses (Japan segment)
Business Update New Businesses (Japan segment) Promote new businesses based on a corporate philosophy that aims to optimize an individual's lifetime balance sheet. STEAM / Bilingual Education Business Genome Platform Business Viling, Inc. STEAM Education Genex, Inc. began whole-genome molecular test
Slide 50: Business Update ESG and Sustainability
Business Update ESG and Sustainability Enrich diversity and human capital investment to achieve sustainable management. Ranked 10th among Japanese companies in Gender Equality Score by Equileap, a Dutch NGO Gender Equality Index adopted by GPIF New Corporate Values* • GPIF recently adopted “Mornings
Slide 51: Business Update ESG and Sustainability
Business Update ESG and Sustainability Further promoted diversity of the Board of Directors. Introduced claw-back provisions in executive compensation. 1. Ratio of female candidates for the Board (10 reappointment / 1 newly appointment) Ms. Sachiko Kuno was newly appointed to the board. Ms. Kuno's o
Slide 52: Appendix: Group Overview
MONEX GROUP Appendix: Group Overview 51
Slide 53: Appendix: Highlights 4Q of FYE Mar. 2023 (3 months) 1/3
Appendix: Highlights 4Q of FYE Mar. 2023 (3 months) 1/3 ◆Total operating revenue after deducting financial expenses and cost of sales, and quarterly profit attributable to owners of the Company Total operating revenue after deducting financial expenses and cost of sales Quarterly profit attributable
Slide 54: Appendix: Highlights 4Q of FYE Mar. 2023 (3 months) 2/3
Appendix: Highlights 4Q of FYE Mar. 2023 (3 months) 2/3 ◆Total operating revenue after deducting financial expenses and cost of sales, and Segment profit (JPY Million) Total operating revenue after deducting financial expenses and cost of sales Segment profit (Quarterly profit before income taxes) 1
Slide 55: Appendix: Highlights 4Q of FYE Mar. 2023 (3 months) 3/3
Appendix: Highlights 4Q of FYE Mar. 2023 (3 months) 3/3 ◆Total operating revenue after deducting financial expenses, and Segment profit (JPY Million) Total operating revenue after deducting financial expense Segment profit (Quarterly profit before income taxes) 800 Asia 600 Pacific 400 282 287 263 2
Slide 56: Appendix: Highlights FYE Mar. 2023 (12 months) 1/3
Appendix: Highlights FYE Mar. 2023 (12 months) 1/3 ◆Total operating revenue after deducting financial expenses and cost of sales, and profit attributable to owners of the Company (JPY million) Total operating revenue after deducting financial expences Profit attributable to owners of the Company Pre
Slide 57: Appendix: Highlights FYE Mar. 2023 (12 months) 2/3
Appendix: Highlights FYE Mar. 2023 (12 months) 2/3 ◆Total operating revenue after deducting financial expenses and cost of sales, and Segment profit (JPY million) Total operating revenue after deducting financial expences and cost of sales Segment profit 34,503 35,000 22,958 23,579 25,000 19,338 19,
Slide 58: Appendix: Highlights FYE Mar. 2023 (12 months) 3/3
Appendix: Highlights FYE Mar. 2023 (12 months) 3/3 ◆Total operating revenue after deducting financial expenses and cost of sales, and Segment profit (JPY million) Total operating revenue after deducting financial expences and cost of sales Segment profit 2,000 1,604 Asia 1,500 1,222 Pacific 1,053 1,
Slide 59: Consolidated balance sheet
Consolidated balance sheet Key points of Monex Group’s consolidated balance sheet of Monex 1. Actual net debt is ¥8.9B for the holding company Monex Group, Inc., which does not engage in securities transactions, etc. 2. Trust assets, which are segregated deposits received from customers and guarante
Slide 60: Corporate Governance
Corporate Governance Established global-standard corporate governance practices and emphasis on dialogue with retail/institutional investors. Adoption of “company with three committees” structure - highly effective executive management monitoring system - Adopted “company with committees” structure
Slide 61: Overview of Monex Group and Main Subsidiaries
Overview of Monex Group and Main Subsidiaries ■ Monex, Inc. (Tokyo, Japan) ■ Coincheck, Inc. (Tokyo, Japan) One of the major online brokerage firms in Japan Crypto asset Exchange/Marketplace agency • President : Yuko Seimei • President: Satoshi Hasuo • Founded in 1999 • Founded in 2012, joined Monex
Slide 62: Group Overview of the Group
Group Overview of the Group Listed Holding Company [ Japan Segment ] [ US Segment ] [ Crypto Asset Segment ] Online Brokerage Asset Management Crypto Asset Exchange Agency Monex, Inc. Monex Asset Management, Inc. TradeStation Group, Inc. Coincheck, Inc. Comprehensive investment service provider Smal
Slide 63: Five Segments Contribution in FYE Mar. 2023
Group Overview - Revenues, Costs, and Employees Five Segments Contribution in FYE Mar. 2023 ■ Japan Segment Total operating revenue Selling, general and ■ US Segment after deducting financial expenses administrative expenses ■ Crypto Asset Segment 1% 0% 2% 0% ■ Asia Pacific Segment 10% 11% ■ Investm
Slide 64: Investment Segment – Portfolio 1/3
Investment Segment – Portfolio 1/3 ◆ Monex Ventures, Inc. ◆ MONEX EDISON Investment Limited Partnership 63
Slide 65: Investment Segment – Portfolio 2/3
Investment Segment – Portfolio 2/3 ◆ MV I Investment Limited Partnership 64
Slide 66: Investment Segment – Portfolio 3/3
Investment Segment – Portfolio 3/3 ◆ MV I Investment Limited Partnership ◆ MV II Investment Limited Partnership 65
Slide 67: Disclaimer
Disclaimer 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, Inc. (“Coincheck”), Coincheck Group B.V. (“CCG”), Thunder Bridge Capital
Slide 68: © Monex Group, Inc.
© Monex Group, Inc. www.monexgroup.jp/