Monex Group, Inc. · TSE:8698
Monex — Q1 FYE03/2003 Earnings Presentation
27 slides from Monex's earnings presentation, Jul 18, 2002
Slide 1: FYE03/2003 1Q Financial Results
FYE03/2003 1Q Financial Results JULY 18, 2002 Forward-looking Statements Statements made at this presentation and in this material include forward-looking statements that are based on our current expectations, assumptions, estimates and projections about our business and the industry. These forward-
Slide 2: Financial Results; Other Business; Newly introduced Services; Management Policy
Ⅰ. Financial Results Ⅱ. Other Business Ⅲ. Newly introduced Services Ⅳ. Management Policy 1
Slide 3: FYE 03/2003 1Q Financial Summary
FYE 03/2003 1Q Financial Summary （unit： ：Yen million） ） FYE 03/2002 FYE 03/2003 change 1Q 1Q Operating Revenue 942 811 -13.9% (Commission Revenue) 923 793 ‐14.0% Operating expense 974 1,148 17.9% Operating loss 31 337 - Ordinary loss 1 334 - Net loss 41 349 - FYE 03/2002 FYE 03/2003 change 1Q 1Q Tot
Slide 4: FYE 03/2003 1Q Financial Summary (2)
FYE 03/2003 1Q Financial Summary (2) Quarter to quarter （unit： ： Yen million） ） FYE 03/2002 FYE 03/2003 Change 4Q 1Q Operating Revenue 794 811 2.1% (Commission Revenue) 780 793 1.6% Operating expense 1,142 1,148 0.5% Operating loss 349 337 - Ordinary loss 348 334 - Net loss 484 349 - FYE 03/2002 FYE
Slide 5: Operating Revenue vs. SGA
Operating Revenue vs. SGA (Yen Million） 1,182 1,217 1,142 1,148 1,015 942974 923 891 848 850 779 794 811 748 752 764 647 Ope.Revenue SGA FYE 3/2002 3Q FYE 3/2003 3Q FYE 3/2003 1Q 1Q 1Q SGA Commission Paid Operating Revenue Breakdown Total : 811(Yen million) ） Total: 1,148(Yen million） Exchange and a
Slide 6: Break-Even Analysis – Spreadsheet
Break- Break-Even Analysis – Spreadsheet 1. Divide major items of SG & A into 2 categories (1) Variable (trade volume or number of accounts base) and (2) Fixed. (unit: million yen） After excluding one-time expenses, Outsourcing Expenses are divided into three categories. ＦＹＥ 03. 2001 FYE 03. 2002 FY
Slide 7: Break-Even Analysis – Number of Trade
Break- Break-Even Analysis – Number of Trade Expenses （million （ yen) number of trades (000) FYE 2002/3 1,000 Necessary infrastructure 2,000 867 822 has been established by 791 intensive investment in 753 800 2Q. 1,500 612 788 601 FYE 2003/3 1Q 564 577 ■Fixed costs： ： 600 482 Maintained low by the 4
Slide 8: Break-Even Analysis – Executed Deal Ratio
Break- Break-Even Analysis – Executed Deal Ratio B/E and actual executed deal ratio 20% 18% 16% 14% Affected by the merger of executed deal ratio Saison Securities Co., Ltd. 12% 10% 8% 6% 4% 2% （B/E executed deal ratio）=（B/E number of executed deal）/（Number of accounts） （Actual executed deal ratio）＝
Slide 9: Stock Price
Stock Price Monex vs. Nikkei 225 average Index (based on August 4, 2000) 200 180 Monex share price (closing price of Aug. 4, 2000=100) 160 140 Nikkei 225 average index （closing price of Aug. 4, 2000＝100） 120 Monex IPO Price （closing price of Aug. 4, 2000＝100） 100 80 60 Price movement from Aug. 4, 20
Slide 10: Financial Results; Other Business; Newly introduced Services; Management Policy
Ⅰ. Financial Results Ⅱ. Other Business Ⅲ. Newly introduced Services Ⅳ. Management Policy 9
Slide 11: Number of customers' accounts
0 50,000 100,000 150,000 200,000 Apr-00 250,000 May-00 Jun-00 Number of accounts Jul-00 Aug-00 Sep-00 Oct-00 Number of customers’ Nov-00 Dec-00 Jan-01 Feb-01 Mar-01 customers’ accounts Apr-01 May-01 Jun-01 Jul-01 Aug-01 Sep-01 Oct-01 Nov-01 Dec-01 Jan-02 Feb-02 Mar-02 Apr-02 DLJ Matsui Monex May-02
Slide 12: Account acquiring costs
Account acquiring costs Newly acquired accounts 44,270 accounts transferred from 25,000 Saison Securities are not included 20,000 in new accounts acquired in the 1Q in FYE 03/2002. 15,000 10,000 5,000 ： Major costs： 0 （１）System （１） related costs （２）Information （２） related costs Advertising costs (Ye
Slide 13: Customers' assets in Custody
Customers’ Customers’ assets in Custody （Yen 15,000 billion） Nikkei 225 Average Index 12,000 9,000 76.1 72.0 64.4 63.4 66.0 （Yen） 55.5 318.5 303.1 334.1 349.0 274.5 222.6 Mar-01 Jun Sep Dec Mar-02 Jun Domestic Stocks Inv. Trust MRF Others MRF and IT Transfer from Saison Securities （June 30, 2001 ） 9
Slide 14: Investment Trust Business
Investment Trust Business Outstanding (billion yen) Number of orders 90 1,200 80 889 949 983 1,000 70 879 839 60 760 792 773 833 788 800 50 470 646 643 600 40 405 30.5 30.0 28.7 29.7 30.2 30.3 29.7 30.4 31.4 31.6 32.9 31.9 30 421 307 400 14.6 31.0 20 13.0 13.9 200 10 11.6 11.0 10.3 9.5 10.3 10.7 10.
Slide 15: Underwriting business
Underwriting business Number of deals Underwriting fee (Yen million) •We underwrote: (share) 36 Quin Land Co., Ltd.(4%) 139 TYO Production Inc. 9 ４Q (5%) ３Q 67 ４Q Takachiho Electric Co., 7 167 Ltd. (6%) 16 ３Q ２Q Dawn Corporation (3%) 15 28 ２Q EC-One, Inc (2%) 16 1Q 5 5 28 13 1Q •Underwriting share h
Slide 16: Financial Results; Other Business; Newly introduced Services; Management Policy
Ⅰ. Financial Results Ⅱ. Other Business Ⅲ. Newly introduced Services Ⅳ. Management Policy 15
Slide 17: Service Line-up
Service Line- Line-up Management Marketing Retention Revenue Monex Nighter Money Express Alert Mail Unique Inv. Trusts Mizuho Super Debit Monex Speed Analyst Report Stock News Investment ・RU・ Deposit from Post Office “PA・ ・RU” Market News Net IPO Monthly Fixed Amount Purchase Plan Customers’needs Ma
Slide 18: Money Planner
Money Planner Postal Office UFJ Bank Account aggregation: Provide JNB shows outstanding with efficient Directly transfer BOTM UFJ other financial management JNB cash on Monex HP institutions tool Mizuho Money Station Money Planner Money Express Shinsei Calculate the difference bet. Stocks Credit Opt
Slide 19: TOKUTEI KOUZA
“TOKUTEI KOUZA” KOUZA” ■New Japanese Tax Law related to securities investments From January, 2003, a new Japanese tax law will be applied for tax filing related to capital gain/loss on securities investment. A retail investor will be able to open an account so called “TOKUTEI KOUZA” at securities ho
Slide 20: Margin Trading
Margin Trading Trade Activity ： high ＜2 Types of expected customers＞ ＞ Others target segment Other online ①Experienced customers （2-4％） ％） Brokers customers Full range of services for experienced customers High (intense) profitability: active clients Assets: Small ： Large Assets: ②Monex Clients: Beg
Slide 21: Margin Trading Impact
Margin Trading Impact ） (FYE 03/2003 1Q） Monex DLJ direct SFG Average number of accounts 199,370 129,526 Average number of orders/B. day 27,536 27,283 Average number of trades/B.day 7,758 16,176 Spot 10,199 （9,077）※1 Margin 5,977 Average number of trades in a year 9.5 Spot 19.3 / account ※2 （11.2）※1
Slide 22: Financial Results; Other Business; Newly introduced Services; Management Policy
Ⅰ. Financial Results Ⅱ. Other Business Ⅲ. Newly introduced Services Ⅳ. Management Policy 21
Slide 23: Monex business model
Monex business model Monex Return Model: Re = (P E 1 + P E 2 ) - Expenses Re:Expected return P: Probability of our scenario P: Probability of the other scenario (P + P = 1) E1: Earnings under our scenario E2: Earnings under the other scenario ： Direct Finance Era is coming P： E1 ：Prepared for E1 max
Slide 24: Factors supporting our business model
Factors supporting our business model ：（Steady capital policy by IPO of August 2000）） Strong financials： ■Liquidity sufficient for sustaining our business： ： no debt; yen 8.2billion cash on hand ■Net Assets： ： Yen 9.9 billion ■Capital adequacy ratio enough for expanding our business： ： 790 ％ ： Brand
Slide 25: Current situation
Current situation Business Assumption Structural changes, Pay-off(bank deposit insurance coverage limit is released), Fiscal Deficit, Corporations and Government Balance Sheet Problems Shift from indirect to direct financing/more responsibility to manage own assets Adjustment to our business strateg
Slide 26: Monex strategy over the time horizon
Monex strategy over the time horizon Profitability Monex ①until now ②today～ ～ Shift to Direct Others Finance ③Shift Time today Shift to Direct finance ・Gained Brand Recognition ・Maximize E 1 Monex will gain a large ・Established Credibility ・Improve profitability profitability over any by combining p
Slide 27: http://www.monex.co.jp/
MONEX http://www.monex.co.jp/