Monex Group, Inc. · TSE:8698
Monex — Q3 FYE March 2025 Earnings Presentation
60 slides from Monex's earnings presentation, Feb 12, 2025
Slide 1: Financial Results for 3Q of Fiscal Year Ending March 31, 2025
TSE Prime : 8698 Monex Group Financial Results for 3Q of Fiscal Year Ending March 31, 2025 February 12, 2025
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 and Forward-looking Statements
Corporate Philosophy p.1 Table of Contents p.2 Ⅰ. Highlights p.3 - p.10 Ⅱ. Consolidated Performance p.11 - p.34 Ⅲ. Business Update p.35 - p.50 Appendix: Group Overview p.51 - p.59 This is an English translation of Japanese presentation materials prepared in connection with the disclosure of the fina
Slide 4: I. Highlights
MONEX GROUP I . Highlights
Slide 5: Growth Strategies, Growth Investment and Cost of Capital Commitment
Commitment Steadily implement growth strategies of each group company, including the Nasdaq listing of Coincheck Group. Aim for sustainable profit growth and increased corporate value through investment in growth areas and management that is conscious of cost of capital and stock price. 1. Growth St
Slide 6: Nasdaq Listing of Coincheck Group N.V. and Its Future Outlook
Nasdaq Listing of Coincheck Group N.V. (CCG) and Its Future Outlook CCG will accelerate and expand its business through M&As utilizing CCG stock, leveraging its brand awareness and reliability as a Nasdaq-listed company. The Future Outlook of CCG Non-financial domain Domestic and non- Global and non
Slide 7: Growth Investment
Growth Investment Incorporating technological advances, the Company has created and expanded its business with proactive growth investments to provide innovative values. Spread of the Internet Changes Social Emergence of Blockchain Evolution of AI and other tech trends Corporate New Business Domain
Slide 8: Group Synergy Effect
Group Synergy Effect Strive to pursue synergies among group companies and create new value while building the optimal business portfolio. Business Portfolio Synergy Value Creation Growth Investment Create New Value by Fostering Group Synergy Asset Management Business × Existing Group Companies × × 7
Slide 9: Assets Under Custody and Assets Under Management
Assets Under Custody and Assets Under Management Monex Group's total assets under custody and assets under management increased to 12 trillion yen, significantly expanding the Group's business base. Assets under custody and assets under management of (Trillion JPY) major group companies Total ¥12 T
Slide 10: Consolidated Pre-tax Income
Consolidated Pre-tax Income The brisk crypto market accompanied by the rise of altcoins drove increased revenue in the Crypto Asset business segment, resulting in favorable consolidated earnings. QoQ +176% One-time expense and others Normalized pre-tax income Increased revenues*1 De-SPAC related (Mi
Slide 11: Capital Management
Capital Management Strengthened the Company’s capital management with a focus on “management that is conscious of cost of capital and stock price,” targeting ROE of 15%. ■ Disciplined Capital Management (announced on Oct. 28, 2024) 1. ROE target is 15%. 2. Promote growth investment and pursue sustai
Slide 12: II. Consolidated Performance
Ⅱ. Consolidated Performance 11
Slide 13: Highlights 3Q of FYE Mar. 2025 (3 months)
Highlights 3Q of FYE Mar. 2025 (3 months) In addition to the stable performance of the Japan and U.S. brokerage businesses, Coincheck and 3iQ saw significant revenue growth due to the strong crypto market. On the other hand, one-time expenses were recorded in relation to the De-SPAC listing of CCG,
Slide 14: QoQ Comparison (3 months) Consolidated Performance
QoQ Comparison (3 months) Consolidated Performance FYE Mar. 2025 FYE Mar. 2025 2Q 3Q Rate of (JPY million) Variance Reference change (Jul. 2024– Sep. 2024) (Oct. 2024– Dec. 2024) Total operating revenue after P15: Analysis of Japan segment deducting financial expenses and 15,433 18,166 +2,733 +18% P
Slide 15: QoQ Comparison (3 months) Segment Performance
QoQ Comparison (3 months) Segment Performance Japan US Crypto Asset Investment (JPY million) 2025/3 2025/3 2025/3 2025/3 2025/3 2025/3 2025/3 2025/3 2Q 3Q 2Q 3Q 2Q 3Q 2Q 3Q Total operating revenue after deducting financial expenses and cost of sales 2,282 2,490 10,861 11,086 2,020 4,790 47 -61 SG&A
Slide 16: QoQ Analysis: Operating Revenue (Japan)
QoQ Comparison (3 months) Analysis: Operating Revenue Japan: A crypto asset management company, 3iQ, increased management fees and staking-related revenues due to a brisk crypto market. ■ Total operating revenue after deducting financial expenses Quarterly total operating revenue after deducting fin
Slide 17: QoQ Analysis: SG&A (Japan)
QoQ Comparison (3 months) Analysis: SG&A Japan: SG&A expenses decreased due to the absence of one-time compensation at 3iQ which was recorded in the previous quarter. ■ Total SG&A Quarterly SG&A Total -4.1％ (-108) (JPY million) *Figures in parentheses indicate the variance from the previous quarter
Slide 18: QoQ Analysis: Operating Revenue (USD) US
QoQ Comparison (3 months) Analysis: Operating Revenue (USD) US: Despite the federal funds rate cut, net financial income remained steady due to favorable stock lending business. Commissions decreased as trading volume decreased. ■ Total operating revenue after deducting financial expenses Quarterly
Slide 19: QoQ Analysis: SG&A (USD) US
QoQ Comparison (3 months) Analysis: SG&A (USD) US: Overall expenses were controlled and remained almost the same level from the previous quarter. ■ Total SG&A （USD thousand） Total SG&A -0.3％（-197） *Figures in parentheses indicate the variance from the previous quarter（USD 80,000 thousand） 62,247 ■ O
Slide 20: QoQ Analysis: Operating Revenue Crypto
QoQ Comparison (3 months) Analysis: Operating Revenue Crypto: Transaction value increased as a result of the booming crypto asset market, driving an significant increase in revenues. ■ Total operating revenue after deducting financial expenses Quarterly total operating revenue after deducting financ
Slide 21: QoQ Analysis: SG&A Crypto
QoQ Comparison (3 months) Analysis: SG&A Crypto: SG&A excluding one-time professional fees related to the De-SPAC is well under control, while variable costs such as bonus expenses and advertising expenses increased in line with strong performance. ■ Total SG&A Total SG&A +194.5％ (+4,185) Total SG&A
Slide 22: Reference: Monex Securities QoQ Net Income
Reference: Monex Securities QoQ Comparison (3 months) Analysis: Net Income Monex Securities: An increased mutual funds related revenues and brokerage commissions from U.S. equities partially offset an decrease in FX related revenues. ■ Net operating revenue (JGAAP) Net operating revenue -3.9％（-386）
Slide 23: Reference: Monex Securities QoQ SG&A
Reference: Monex Securities QoQ Comparison (3 months) Analysis: SG&A Monex Securities: Advertising expenses decreased due to the absence of web commercial expenses implemented in the previous quarter. ■ Total SG&A (JGAAP) Quarterly SG&A Total -0.3％ (-25) *Figures in parentheses indicate the variance
Slide 24: YoY Comparison (9 months) Consolidated Performance
YoY Comparison (9 months) Consolidated Performance FYE Mar. 2024 FYE Mar. 2025 Rate of (JPY million) 3Q 3Q Variance Reference change (Apr. 2023 – Dec. 2023) (Apr. 2024 – Dec. 2024) Total operating revenue after P25: Analysis of Japan segment deducting financial expenses and cost 62,320 50,561 -11,75
Slide 25: YoY Comparison (9 months) Segment Performance
YoY Comparison (9 months) Segment Performance Japan US Crypto Asset Asia Pacific*3 Investment (JPY million) 2024/3 2025/3 2024/3 2025/3 2024/3 2025/3 2024/3 2025/3 2024/3 2025/3 3Q 3Q 3Q 3Q 3Q 3Q 3Q 3Q 3Q 3Q Total operating revenue after deducting financial expenses and cost of sales 26,927 7,073 30
Slide 26: YoY Analysis: Operating Revenue (Japan)
YoY Comparison (9 months) Analysis: Operating Revenue Japan: Deconsolidation of Monex Securities lightened the revenue structure since Q4 FYE2024 Mar. Monex Securities’ business performance has been recorded as a profit of equity method investment within non-operating revenue. Total operating revenu
Slide 27: YoY Analysis: SG&A (Japan)
YoY Comparison (9 months) Analysis: SG&A Japan: With the deconsolidation of Monex Securities, SG&A related to Monex Securities has been eliminated from Q4 FYE2024 Mar. ■ Total SG&A SG&A Total -65.3％ (-14,891) *Figures in parentheses indicate the variance from the previous year (JPY million) (JPY mil
Slide 28: YoY Analysis: Operating Revenue (USD) US
YoY Comparison (9 months) Analysis: Operating Revenue (USD) US: Net financial income on client cash remained steady. Other commissions increased due to strong trading volume of Equities and Options from high value customer base. ■ Total operating revenue after deducting financial expenses Total oper
Slide 29: YoY Analysis: SG&A (USD) US
YoY Comparison (9 months) Analysis: SG&A (USD) US: Information expenses decreased as TradeStation started to charge their customers for market data fees. Overall expenses have been maintained at appropriate levels. ■ Total SG&A （USD thousand） Total SG&A -2.5％（-4,486） *Figures in parentheses indicate
Slide 30: YoY Analysis: Operating Revenue Crypto
YoY Comparison (9 months) Analysis: Operating Revenue Crypto: Transaction value increased as a result of the booming crypto asset market, driving an increase in Marketplace revenues. IEO related revenues were recorded in 1Q as well. ■ Total operating revenue after deducting financial expenses Total
Slide 31: YoY Analysis: SG&A Crypto
YoY Comparison (9 months) Analysis: SG&A Crypto: Advertising expenses increased in line with the crypto asset market condition. One-time Professional fees related to the De-SPAC transaction were recorded. Total SG&A +131.3％ (+6,221) ■ Total SG&A Total SG&A excluding one-time professional fees +60.1％
Slide 32: Reference: Monex Securities YoY Net Income
Reference: Monex Securities YoY Comparison (9 months) Analysis: Net Income Monex Securities: Account transfer from AEON Bank has led to a significant growth in mutual funds related revenues. Fixed income related revenue increased due to growth in wealth management business. ■ Net operating revenue (
Slide 33: Reference: Monex Securities YoY SG&A
Reference: Monex Securities YoY Comparison (9 months) Analysis: SG&A Monex Securities: Advertising expenses increased due to a collaborative marketing with NTT DOCOMO. Commissions paid for mutual funds and fixed income increased driven by the strong performance of the intermediary business. ■ Total
Slide 34: Additional Shareholder Distribution
Additional Shareholder Distribution In accordance with the shareholder return policy that came into effect on Jan.4, 2024, a share buyback program is proceeding. ◆ Capital Management ◆ Overview of Share Buyback Announced the following share buyback on Jul. 26, 2024 The Company aims to achieve an ROE
Slide 35: Shareholder Distribution (Actual and Forecast)
Shareholder Distribution (Actual and Forecast) The Company is in the middle of a share buyback period, while at the same time it announced a special year-end dividend. ◆ Dividend Per Share ◆ TSR (Total Shareholder Return: five-year basis) (JPY) 25.1 45 (Forecast) Monex Group, Inc.(dividend included)
Slide 36: III. Business Update
MONEX GROUP IT. Business Update 35
Slide 37: Monex Securities 1/2
Monex Securities 1/2 The alliance with nationwide partners and the reinforced wealth management business drive rapid growth in the customer base as well as steady progress of the asset gathering model. (JPY Trillion) Customer Assets at Monex Securities (Accounts k) 15 Mutual Fund Foreign Equities Ot
Slide 38: Monex Securities 2/2
Monex Securities 2/2 Has launched a “periodic purchasing service using d CARD*” and “d ACCOUNT* linkage service,” etc. during the 1st year of the alliance with NTT DOCOMO. The partnership will keep striving for creating benefits to the users of this ecosystem. Under Development ddアカウント ACCOUNT* d Pa
Slide 39: Monex Asset Management
Monex Asset Management Asset under management (AUM) of Robo-advisory services reached to ¥100B. Robo-advisor services have seen rapid increases in balances Asset Under Management of ■ Robo-advisor services Robo-advisor service and Monex Activist Fund ON COMPASS 1 (JPY Billion) Ranked No.1 in Sharpe
Slide 40: Monex Activist Fund
Monex Activist Fund Monex Activist Fund pursues the improvement in capital productivity of listed companies and the development of capital markets in Japan. Its performance has been strongly supported by the engagements with portfolio companies. Monex Activist Fund Changes in Asset Under Management
Slide 41: 3iQ Digital Holdings Inc.
3iQ Digital Holdings Inc. Canadian crypto asset management company, 3iQ Digital Holdings Inc., aims to capture the crypto asset management needs of institutional investors and global exchanges, which are expected to grow in the future. 3iQ Digital Holdings Inc. ■ Business Overview ■ Asset Under Mana
Slide 42: TradeStation 1/4
TradeStation 1/4 Net interest income from customer deposits remained steady. TradeStation will continue to optimize the portfolio in line with some rate cuts and prolong the revenue stream. Interest on customer cash ・Interest income from customer cash deposits ($2.6B, average at the end of each mont
Slide 43: TradeStation 2/4
TradeStation 2/4 The number of target customers* hit the highest in the past 2 years. TradeStation aims to grow its target customer base by strengthening its outbound sales team and providing APIs to third parties. Revenue from target customers make up 81% of total revenues. （Accounts） The number of
Slide 44: TradeStation 3/4
TradeStation 3/4 Through the enhancement of customer experience such as the introduction of Concierge Service, TradeStation aims to increase revenue from the target customers. TradeStation’s value creation cycle Product & Services Award-winning sophisticated and active trader brokerage and analysis
Slide 45: TradeStation 4/4
TradeStation 4/4 In order to create the ultimate trading experience for traders, TradeStation released both an enhanced portal called HUB and extended equity market hours. HUB – The All-New Core of TradeStation Extended Market Hours and PFOF (Equity) Expansion Access to trading platforms In November
Slide 46: Coincheck 1/4
Coincheck 1/4 With its strong reputation and large customer base, Coincheck promotes not only trading services but services such as staking and other corporate services to support web3 businesses. Moat of Coincheck and Its Growth Strategy 3 Main Business Domains Profit Structure Coincheck Aims for C
Slide 47: Coincheck 2/4
Coincheck 2/4 Coincheck continues to attract customers as Japan’s premier and most trusted crypto assets trading platform. Crypto asset exchange and marketplace App Downloads Share by Accounts*2 Coincheck’s Wallet Management for Crypto Asset No.1 domestic market share for 19% 2.20M - In order to sec
Slide 48: Coincheck 3/4
Coincheck 3/4 Coincheck launched staking service in Jan. Coincheck stakes*1 the Ethereum (ETH) held by the customers, and returns reward to them after deducting the fees. “Coincheck Staking” ②Coincheck stakes ETH ①Customers buy and/or and contributes to the ETH deposit ETH blockchain as a validator*
Slide 49: Coincheck 4/4
Coincheck 4/4 Coincheck is the leading player in the Japanese IEO market, completing the most number of IEO cases. Coincheck Initial Exchange Offering (IEO) The 3rd IEO – BRIL is the first IEO of a listed company’s subsidiary. 1st IEO - PLT 3rd IEO - BRIL 4th IEO (scheduled) Completed in 2Q of FYE M
Slide 50: New Businesses (Japan segment)
New Businesses (Japan segment) Promote new businesses based on a corporate philosophy that aims to optimize an individual's lifetime balance sheet. Viling, Inc. (Human Resource Development Business*) Monex Life Settlement, Inc. “AI Therapist, co-mii” Launched “insurance purchase” service “AI Therapi
Slide 51: Sustainability
Sustainability Promote DEI as a source of competitiveness and innovation as a growth strategy. Enhancement of initiatives to support value creation Special department for businesses creation DEI (Diversity, Equity and Inclusion) Within the Group, “Monex Zero Office,” a specialized • Received the hig
Slide 52: Appendix: Group Overview
MONEX GROUP Appendix: Group Overview 51
Slide 53: Group Overview of the Monex Group
Group Overview of the Monex Group As of . Feb 12, 2025 ※ Shareholding ratio below in the chart means economic interest. (TSE：8698) ※ Business domains are different from disclosure segment. ※ Listing classification, Stock code / Ticker symbol. Listed Holding Company Business Domain Online Brokerage C
Slide 54: Appendix: Highlights 3Q of FYE Mar. 2025 (3 months) 1/3
Appendix: Highlights 3Q of FYE Mar. 2025 (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 55: Appendix: Highlights 3Q of FYE Mar. 2025 (3 months) 2/3
Appendix: Highlights 3Q of FYE Mar. 2025 (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 56: Appendix: Highlights 3Q of FYE Mar. 2025 (3 months) 3/3
Appendix: Highlights 3Q of FYE Mar. 2025 (3 months) 3/3 ◆Total operating revenue after deducting financial expenses, and Segment profit (JPY Million) Total operating revenue after deducting financial expenses and cost of sales Segment profit (Quarterly profit before income taxes) 500 Investment 47 -
Slide 57: Consolidated balance sheet
Consolidated balance sheet Key points of the consolidated balance sheet of Monex Group 1. The holding company Monex Group, Inc. maintains a net cash position at the end of the current period. 2. Trust assets, which are segregated deposits received from customers and guarantee deposits received, acco
Slide 58: 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 59: Overview of Monex Group and Main Group Companies
Overview of Monex Group and Main Group Companies ■ Monex, Inc. (Tokyo, Japan) ■ Coincheck, Inc. (Tokyo, Japan) One of the major online brokerage firms in Japan Crypto asset Exchange/Marketplace agency that is ranked No.1 in crypto asset • President : Yuko Seimei trading app downloads in Japan for 6
Slide 60: © Monex Group, Inc. www.monexgroup.jp/
© Monex Group, Inc. www.monexgroup.jp/
Monex Group — Q3 FYE March 2025 Earnings Presentation on 6ix