Slide 1: Financial Results for Fiscal Year Ending March 31, 2022
TSE Prime : 8698 Monex Group Financial Results for Fiscal Year Ending March 31, 2022 April 27, 2022
Slide 2: Our Business Principles
Our Business Principles 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 w
Slide 3: Table of Contents
Our Business Principles p.1 Table of Contents p.2 Ⅰ. Highlights p.3-p.14 Ⅱ. Consolidated Performance p.15-p.35 Ⅲ. Business Update p.36-p.51 Appendix. Group Overview p.52-p.67 Disclaimer p.68 This is an English translation of Japanese presentation materials prepared in connection with the disclosure
Slide 4: I. Highlights
MONEX GROUP I . Highlights
Slide 5: Highlights FYE Mar. 2022 – Consolidated Operating Revenue
Highlights FYE Mar. 2022 – Consolidated Operating Revenue Achieved record high total operating revenue*. Continuous growth in major segments since the start of the Crypto Asset business. FYE Mar. 2022 FYE Mar. 2019 1st fiscal year since Coincheck joined the group ¥2.1B For previous three fiscal year
Slide 6: Highlights FYE Mar. 2022 – Consolidated Pre-tax Income
Highlights FYE Mar. 2022 – Consolidated Pre-tax Income Consolidated pretax income remained flat YoY even with aggressive advertising and personnel reinforcement aimed at further growth, as well as one-time expenses related to the De-SPAC listing. Expiration of the Increase in earn-out clause (JPY mi
Slide 7: Monex Group's Three Goals
Monex Group's Vision Monex Group's Three Goals 1 2 3 A global company offering A diversified business Decisive upfront investment new services that go portfolio with three pillars: in the online securities beyond the future of online securities business business in Japan and the U.S. finance to opti
Slide 8: Increase Enterprise Value of Subsidiaries
Increase Enterprise Value of Subsidiaries Monex Group leveraged its diverse management resources to help TradeStation and Coincheck grow significantly. # of customer Comparison Valuation*1 Customer assets Revenues*2 accounts At the time of the tender offer FYE 3/31/2012 in 2011 49k*4 $2.5B*4 $135M $
Slide 9: Growth Strategy of TradeStation (US Segment)
Growth Strategy of TradeStation (US Segment) TradeStation Group aims to list on the New York Stock Exchange in 2022 to raise capital for its growth strategy of capturing the growing retail investor market in the U.S. [Summary]*3 QFTA - After the merger between TSG Merger Sub and a NYSE-listed SPAC,
Slide 10: Growth Strategy of Coincheck (Crypto Asset Segment)
Growth Strategy of Coincheck (Crypto Asset Segment) With the rapid expansion of the crypto market, Coincheck Group N.V. (Coincheck Group) will be newly established to further grow the crypto business and aims to list on NASDAQ in 2022. [Summary] Other THCP - Establishes a new company, Coincheck Grou
Slide 11: Group Strategy
Group Strategy Decisive upfront investment for long-term business expansion and execution of growth strategies at each major subsidiary Japan Segment US Segment Crypto Asset Segment Strengthened business Raised capital to promote Global expansion foundation by acquiring new account acquisition strat
Slide 12: Fair Value of Monex Group
Fair Value of Monex Group Aim to enhance Group corporate value by manifesting the value of major subsidiaries through De-SPAC listings and by steadily implementing growth strategies at each company. With the De-SPAC listings in US market, aims to manifest corporate value of subsidiaries Cumulative F
Slide 13: Growth Strategy of Monex Securities (Japan Segment)
Growth Strategy of Monex Securities (Japan Segment) Reduced cash trading commissions for Japanese stocks. Aims to acquire new accounts and increase assets under custody by leveraging its superior services. (¥T) Monex Securities's customer assets & accounts (Accounts: K) 8 2,500 Total accounts (right
Slide 14: Growth Strategy of TradeStation (US Segment)
Growth Strategy of TradeStation (US Segment) TradeStation continues to focus on marketing and product enhancements to aim to grow total customer accounts and total customer assets. TradeStation's customer assets & accounts (Accounts: K) （$B） 15 250 227 12 Total customer accounts*1 (right) 200 179 To
Slide 15: Growth Strategy of Coincheck (Crypto Asset Segment)
Growth Strategy of Coincheck (Crypto Asset Segment) Coincheck focuses on attracting new customers and acquiring new accounts to support its long-term growth strategy, while continuing to lead in Japan. Coincheck’s customer assets and verified accounts YoY +35% (¥B) (Accounts: K) 600 1,800 1,620 # of
Slide 16: II. Consolidated Performance
Ⅱ. Consolidated Performance 15
Slide 17: Highlights FYE Mar. 2022 (12 months)
Highlights FYE Mar. 2022 (12 months) Each segment continued to grow, with operating revenue*1 reaching a record high. Even with decisive upfront investment for mid- to long-term growth, consolidated pre-tax income was ¥20.8B. Recurring revenues from mutual funds and margin interest, as well as reven
Slide 18: YoY Comparison (12 months) Consolidated Performance
YoY Comparison (12 months) Consolidated Performance FYE Mar. 2021 FYE Mar. 2022 Rate of (JPY million) (Apr. 2020– (Apr. 2021– Variance Reference change Mar. 2021) Mar. 2022) Record High P19: Analysis of Japan segment Total operating revenue after deducting financial expenses and cost of sales 73,695
Slide 19: YoY Comparison (12 months) Segment Performance
YoY Comparison (12 months) Segment Performance Japan US Crypto Asset Asia Pacific Investment (JPY million) 2021/3 2022/3 2021/3 2022/3 2021/3 2022/3 2021/3 2022/3 2021/3 2022/3 Total operating revenue after deducting financial expenses and cost of sales 29,099 30,438 22,958 23,579 20,822 28,621 1,60
Slide 20: Analysis: Operating Revenue – Japan
YoY Comparison (12 months) Analysis: Operating Revenue Japan: Revenue increased by approximately 5% with an increase in recurring revenue from margin income and mutual funds, offsetting a decline in Japanese equities brokerage commissions due to a decrease in equity trading volume. ■ Total operating
Slide 21: Analysis: SG&A – Japan
YoY Comparison (12 months) Analysis: SG&A Japan: System related expenses and commissions paid increased due to the enhancement of U.S. equity services and the operation of accounts transferred from Shinsei Bank. ■ SG&A (JPY million) SG&A Total +4.6％ (+1,113) * Figures in parentheses indicate the var
Slide 22: Analysis: Operating Revenue (USD) – US
YoY Comparison (12 months) Analysis: Operating Revenue (USD) US: Lower brokerage commissions and other revenue partially offset by higher other commissions and net financial income, while VIX declined 26% YoY. ■ Total operating revenue after deducting financial expenses Total operating revenue after
Slide 23: Analysis: SG&A (USD) – US
YoY Comparison (12 months) Analysis: SG&A (USD) US: Advertising expenses and compensation and benefits increased significantly as account growth strategy and product initiatives were launched during the year ended 3/31/2022. ■ SG&A (USD thousand) SG&A Total +41.1％ (+76,440) 300,000 * Figures in pare
Slide 24: Analysis: Operating Revenue – Crypto
YoY Comparison (12 months) Analysis: Operating Revenue Crypto: Net trading income increased due to higher trading value driven by account growth. Others increased due to an expansion of new businesses such as NFTs. (JPY million) 30,000 28,621 Quarterly total operating revenue after deducting financi
Slide 25: Analysis: SG&A – Crypto
YoY Comparison (12 months) Analysis: SG&A Crypto: Advertising expenses significantly increased due to proactive marketing efforts, such as TV commercials for new account acquisition. (JPY million) 20,000 SG&A Total +109.1％ (+7,780) * Figures in parentheses indicate the variance from the previous yea
Slide 26: Highlights 4Q of FYE Mar. 2022 (3 months)
Highlights 4Q of FYE Mar. 2022 (3 months) Promoted upfront investments for further growth in major segments. Preparing the De-SPAC listings of subsidiaries, consolidated pre-tax income was ¥1.5B. Completed account transfer from Shinsei Bank. Posted a gain on sales of DeFi tokens, Japan resulting in
Slide 27: QoQ Comparison (3 months) Consolidated Performance
QoQ Comparison (3 months) Consolidated Performance FYE Mar. 2022 FYE Mar. 2022 3Q 4Q Rate of (JPY million) Variance Reference (Oct. 2021– (Jan. 2022– change Dec. 2021) Mar. 2022) P28: Analysis of Japan segment Total operating revenue after deducting financial expenses and cost of sales 19,138 17,612
Slide 28: QoQ Comparison (3 months) Segment Performance
QoQ Comparison (3 months) Segment Performance Japan US Crypto Asset Asia Pacific Investment (JPY million) 2022/3 2022/3 2022/3 2022/3 2022/3 2022/3 2022/3 2022/3 2022/3 2022/3 3Q 4Q 3Q 4Q 3Q 4Q 3Q 4Q 3Q 4Q Total operating revenue after deducting financial expenses and cost of sales 7,861 7,823 6,062
Slide 29: QoQ Analysis: Operating Revenue – Japan
QoQ Comparison (3 months) Analysis: Operating Revenue Japan: Trust fees from mutual funds increased after account transfers from Shinsei Bank. Revenue from U.S. stock services also expanded steadily. ■ Total operating revenue after deducting financial expenses and cost of sales Quarterly total opera
Slide 30: QoQ Analysis: SG&A – Japan
QoQ Comparison (3 months) Analysis: SG&A Japan: Commissions paid increased in line with higher transaction volume following the transfer of accounts from Shinsei Bank. Advertising expenses increased along with the rise in the number of accounts opened. ■ SG&A Quarterly SG&A Total +7.1％ (+450) (JPY m
Slide 31: QoQ Analysis: Operating Revenue (USD) – US
QoQ Comparison (3 months) Analysis: Operating Revenue (USD) US: Decrease in net financial income due to lower securities lending was offset by higher brokerage commissions, driven by futures commissions and other commissions. ■ Total operating revenue after deducting financial expenses and cost of s
Slide 32: QoQ Analysis: SG&A (USD) – US
QoQ Comparison (3 months) Analysis: SG&A (USD) US: SG&A decreased due to adjustments in marketing spend to improve account acquisition efficiencies and to better align headcount with development initiatives and account support needs. ■ SG&A (USD thousand) Quarterly SG&A Total -6.2％ (-4,725) *Figures
Slide 33: QoQ Analysis: Operating Revenue – Crypto
QoQ Comparison (3 months) Analysis: Operating Revenue Crypto: Net trading income decreased due to lower trading volumes amidst a slower crypto market. On the other hand, others increased due to new businesses, such as NFTs. (JPY million) Quarterly total operating revenue after deducting financial 15
Slide 34: QoQ Analysis: SG&A – Crypto
QoQ Comparison (3 months) Analysis: SG&A Crypto: Compensation and benefits increased due to one-time expenses related to De-SPAC. Advertising expenses have decreased and are in line with current market conditions. (JPY million) 5,000 SG&A Total +10.3％ (+403) 4,313 * Figures in parentheses indicate t
Slide 35: 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) 17.3% 20 18% 13.4% 15% 12.9% 15 7.0 12% 7.7 8.3% 10 9% 2.6 7.5 6.
Slide 36: 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, 2022) Our basic principle is to increase its corporate value in a sustainable way as Monex Group, Inc. 0.4% w
Slide 37: III. Business Update
MONEX GROUP IT. Business Update 36
Slide 38: Business Update Japan Segment 1/4
Business Update Japan Segment 1/4 Lowered brokerage commissions for Japanese equities to the lowest level in the industry. Aiming to increase its share of Japanese equity trading volume over the mid- to long-term by strengthening its ability to acquire new account. Equity Transaction and Gross New A
Slide 39: Business Update Japan Segment 2/4
Business Update Japan Segment 2/4 Strengthen our ability to acquire new accounts and become a company chosen for its leading-edge service offerings. Strengthen Service Superiority Unparalleled U.S. stock trading services, Monex stock scouter, odd-lot stocks, various savings services to meet custom
Slide 40: Business Update Japan Segment 3/4
Business Update Japan Segment 3/4 Monex Cards offering led to an increase in the number of accounts under contract with periodic purchase of mutual funds. U.S. stocks were also strong. Mutual Funds US Equities • Over ¥ 1T of total mutual funds AUM*1. • A large number of stocks handled, rapid additio
Slide 41: Business Update Japan Segment 4/4
Business Update Japan Segment 4/4 Position the asset management business as a growth area with great potential. Robo-advisor AUM rapidly grew 3.5 times YoY. Asset Under Management Todal AUM Robo-advisor service AUM ￥38.4B （YoY ｘ3.5） (¥ billion) 70 Robo-advisor services ON COMPASS/ON COMPASS+ ¥ 65.7B
Slide 42: Business Update US Segment 1/4
Business Update US Segment 1/4 Total customer accounts increased by 55%*1 YoY. Trading in Futures and Options increased. Customer Assets and Accounts DARTs and VIX Total Customer Accounts*1: 227K accounts (+55% YoY) Trading has normalized, with DARTs +11% QoQ. Total customer assets*2 : $12.0B (+16%
Slide 43: Business Update US Segment 2/4
Business Update US Segment 2/4 Self-clearing positions TradeStation to benefit from rising interest-rate environment. Commission Revenue Interest Income • Brokerage revenue*1 totaled $41.1M in 4Q. • Total Customer Cash of $2.9B at March 31, 2022, grew • Brokerage commission decreased YoY as trading
Slide 44: Business Update US Segment 3/4
Business Update US Segment 3/4 TradeStation’s product suite development is focused on user experience, cryptocurrency platform and its offerings through third-party using its API to support its growth strategy. Recent Product Releases Planned Enhancement Products and Services Integration with existi
Slide 45: Business Update US Segment 4/4
Business Update US Segment 4/4 TradeStation positions itself to attract an expanding market of self-directed investors. TradeStation’s Pillars for Growth Award-Winning Suite of Trader and Investor Products Expanding Customer Base of Experienced and New Traders • TradeStation Rated #1 or “Best in Cla
Slide 46: Business Update Crypto Asset Segment 1/4
Business Update Crypto Asset Segment 1/4 Coincheck maintains a leading position in the crypto asset industry in Japan. Coincheck Strengths 1. User friendly UI/UX 2. Customer base 3. Broad product set Robust KYC / AML and compliance No.1 market share in Japan for three consecutive years Number of tok
Slide 47: Business Update Crypto Asset Segment 2/4
Business Update Crypto Asset Segment 2/4 Coincheck leads Japan’s leading position in NFTs as well as crypto trading. NFT Coincheck NFT (β version) miime • First regulated Japanese exchange dedicated to NFTs. • miime is an on-chain NFT platform and overseas users are • Coincheck NFT (β version) is in
Slide 48: Business Update Crypto Asset Segment 3/4
Business Update Crypto Asset Segment 3/4 Coincheck intends to create and expand its digital economic sphere with an eye on Web 3.0 through its NFT/Metaverse initiatives. Metaverse/Web3.0 Oasis TOKYO・Oasis Kyoto • Launched a project to create a year 2035 near-future cities, "Oasis TOKYO" and "Oasis K
Slide 49: Business Update Crypto Asset Segment 4/4
Business Update Crypto Asset Segment 4/4 Coincheck has identified numerous large growth opportunities that can be pursued organically and accelerated through M&A or partnerships. Deepen Existing Broaden Digital Asset Offerings Solutions Marketplace / NFTs Web3.0 Institutional Financial On-ramp Inter
Slide 50: Business Update Asia Pacific and Investment Business Segment
Business Update Asia Pacific and Investment Business Segment The Asia Pacific Segment remained profitable for the full year. In the Investment Business Segment, a portfolio company of Monex Ventures, Inc. went public. Asia Pacific Segment Investment Segment • Accounts with balance is 22K (YoY +7%).
Slide 51: Business Update New Businesses
Business Update New Businesses Acquired a STEAM education business and a genome platform business. STEAM Education Business Genome Platform Business Viling, Inc. operates classrooms to offer STEAM educations. Genex creates a genome management platform. STEAM Education Bsiness Overview Whole Genome 1
Slide 52: Business Update ESG and Sustainability
Business Update ESG and Sustainability Promoting clarification of policies and additional disclosure of data to address ESG issues. New ESG/Sustainability Disclosures • Environmental Policy: Establishing a system to respond to climate change • Client-Oriented Products and Services Policy: Initiative
Slide 53: Appendix. Group Overview
MONEX GROUP Appendix. Group Overview 52
Slide 54: Appendix: Highlights FYE Mar. 2022 (12 months) 1/3
Appendix: Highlights FYE Mar. 2022 (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 expenses and cost of sales Profit attributable to owners
Slide 55: Appendix: Highlights FYE Mar. 2022 (12 months) 2/3
Appendix: Highlights FYE Mar. 2022 (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 22,958 23,579 US 25,000 17,417 19,338 19,887
Slide 56: Appendix: Highlights FYE Mar. 2022 (12 months) 3/3
Appendix: Highlights FYE Mar. 2022 (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 expenses Segment profit Asia 2,500 1,604 Pacific 1,500 1,222 931 808 634 519 500 -225 -
Slide 57: Appendix: Highlights 4Q of FYE Mar. 2022 (3 months) 1/3
Appendix: Highlights 4Q of FYE Mar. 2022 (3 months) 1/3 ◆Total operating revenue after deducting financial expenses and cost of sales, and quarterly profit attributable to owners of the Company (JPY million) Total operating revenue after deducting financial expenses and cost of sales Quarterly profi
Slide 58: Appendix: Highlights 4Q of FYE Mar. 2022 (3 months) 2/3
Appendix: Highlights 4Q of FYE Mar. 2022 (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) 8
Slide 59: Appendix: Highlights 4Q of FYE Mar. 2022 (3 months) 3/3
Appendix: Highlights 4Q of FYE Mar. 2022 (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) Asia 800 600 528 Pacific 323 321 400 2
Slide 60: Consolidated balance sheet
Consolidated balance sheet Key points of Monex Group’s consolidated balance sheet of Monex 1. Actual net debt is ¥15.4B 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 guarant
Slide 61: Corporate Governance
Corporate Governance Established global-standard corporate governance practices and emphasis on dialogue with retail/institutional investors. Monex Group shifted to the new listing category of Tokyo Stock Exchange, "Prime Market" on Apr. 4, 2022. Adoption of “company with three committees” structure
Slide 62: Group Overview
Group Overview Listed Holding Company (As of March 31, 2022) [Japan] [US/Europe] [Asia Pacific] Crypto asset exchange Online Securities Company Monex International Limited service provider Holding Company in Hong Kong TradeStation Group, Inc. Online Securities Company Holding Company in the U.S. Mon
Slide 63: Overview of Monex Group and Main Subsidiary Companies
Overview of Monex Group and Main Subsidiary Companies ■ 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, join
Slide 64: Group Overview－Revenues, Costs, and Employees
Group Overview－Revenues, Costs, and Employees Five Segments Contribution in FYE Mar. 2022 ■ Japan Segment Total operating revenue Selling, general and ■ US Segment after deducting financial expenses administrative expenses ■ Crypto Asset Segment 1% 1% 2% 0% ■ Asia Pacific Segment 20% ■ Investment Se
Slide 65: 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, Monex Asset Man
Slide 66: Investment Segment – Portfolio 1/3
Investment Segment – Portfolio 1/3 ◆ Monex Ventures, Inc. Becamepublicon Mothers TSE ◆ MONEX EDISON Investment Limited Partnership 65
Slide 67: Investment Segment – Portfolio 2/3
Investment Segment – Portfolio 2/3 ◆ MV I Investment Limited Partnership 66
Slide 68: Investment Segment – Portfolio 3/3
Investment Segment – Portfolio 3/3 ◆ MV I Investment Limited Partnership ◆ MV II Investment Limited Partnership 67
Slide 69: Disclaimer
Disclaimer Cautionary Statement Regarding Forward-Looking Statements This communication contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended, that reflect TradeStation’s current views with respect to, among other things, the futur
Slide 70: © Monex Group, Inc. www.monexgroup.jp/
© Monex Group, Inc. www.monexgroup.jp/