Financial Results Financial Results First Half of Fiscal Year Ending March 31, 2005 First Half of Fiscal Year Ending March 31, 2005 October 21, 2004 October 21, 2004 This is an English translation of Japanese presentation material prepared for IR conference held on the above date; it includes the information on non- consolidated financial summary under Japanese GAAP for the first half of FYE March 2005. If there is any discrepancy between a statement in English and a statement in Japanese, the Japanese statement is always controlling. 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-looking statements are subject to various risks and uncertainties. These statements discuss future expectations and plans, identify strategies, contain projections of results of operations and of our financial condition, and state other “forward-looking” information. Known and unknown risks, uncertainties and other factors could cause the actual results to differ materially from expected results contained in any forward-looking statements. Potential risks and uncertainties include, without limitation, our ability to continue to attract and retain customers and their assets; our ability to make our operations profitable; changes in the demand for brokerage services in Japan; our ability to continue to expand and maintain our computers and electronic systems and to avoid failures of these systems; and our ability to maintain our relationship with our founding shareholders. This does not correspond to US GAAP.
1. Financial Results and Business Overview 2. Business Model and Future Development 2
Financial Summary : First Half of FYE Mar. 31, 2004 vs. First Half of FYE Mar. 31, 2005 First Half of FYE Mar. 2004 First Half of FYE Mar. 2005 Change (Apr. 2003-Sep. 2003 ） (Apr. 2004-Sep. 2004) (in million yen, %) 6,130 67.9% Operating Revenues 10,295 5,832 67.2% Net Operating Revenues 9,752 Selling, general and 3,977 43.3% 5,698 administrative expenses 1,854 118.6% Operating Income 4,054 1,858 114.4% Ordinary Income 3,983 1,642 160.7% Net Income 4,280 First Half of FYE Mar. 2004 First Half of FYE Mar. 2005 Change （ as of Sep. 30, 2003 ） （ as of Sep. 30, 2004 ） (in million yen, %) 110,719 197,755 78.6% Total Assets 19,164 26,959 40.7% Net Assets 585.3% 531.2% - Capital Adequacy Ratio 15,176 38,566 154.1% Cash and Deposits Please note that, unless otherwise stated, the figures in this material show the consolidated figures of MBH and its group companies (i.e. Monex and 3 Nikko Beans) and those figures before the first half of FYE Mar. 31, 2005 are the simple sums of those of Monex and Nikko Beans. All statements in this presentation material are based on this premise.
Financial Summary : Second Half of FYE Mar. 31, 2004 vs. First Half of FYE Mar. 31, 2005 Second Half of FYE Mar. 2004 First Half of FYE Mar. 2005 Change (in million yen, %) (Oct. 2003-Mar. 2004) (Apr. 2004-Sep. 2004) 8,945 15.1% Operating Revenues 10,295 8,605 13.3% Net Operating Revenues 9,752 Selling, general and 4,982 14.4% 5,698 administrative expenses 3,622 11.9% Operating Income 4,054 3,626 9.8% Ordinary Income 3,983 3,151 35.8% Net Income 4,280 FYE Mar. 2004 First Half of FYE Mar. 2005 Change （ as of Mar. 31, 2004 ） （ as of Sep. 30, 2004 ） (in million yen, %) 156,491 197,755 26.4% Total Assets 22,492 26,959 19.9% Net Assets 521.8% 531.2% - Capital Adequacy Ratio 15,984 38,566 141.3% Cash and Deposits 4
Financial Summary : 1Q of FYE Mar. 31, 2005 vs. 2Q of FYE Mar. 31, 2005 1Q of FYE Mar. 2005 2Q of FYE Mar. 2005 Change (Apr. 2004-Jun. 2004) (in million yen, %) (Jul. 2004-Sep. 2004) 5,764 -21.4% Operating Revenues 4,530 5,440 -20.7% Net Operating Revenues 4,312 Selling, general and 2,806 3.1% 2,892 administrative expenses 2,633 -46.1% Operating Income 1,420 2,645 -49.4% Ordinary Income 1,338 2,531 -30.9% Net Income 1,749 1Q of FYE Mar. 2005 2Q of FYE Mar. 2005 Change （ as of Jun. 30, 2004 ） （ as of Sep. 30, 2004 ） (in million yen, %) 192,502 197,755 2.7% Total Assets 25,209 26,959 6.9% Net Assets 511.3% 531.2% - Capital Adequacy Ratio 26,756 38,566 44.1% Cash and Deposits 5
Financial Summary : Financial Highlights (Quarterly Basis ） Net Operating Revenues Selling, General and Administrative Expenses (in million yen) (in million yen) 6,000 5,440 6,000 4,907 4,312 5,000 5,000 3,698 3,644 4,000 4,000 2,892 2,806 2,703 3,000 3,000 2,278 2,187 2,109 1,867 2,000 2,000 1,000 1,000 0 0 FYE Mar. 2004 FYE Mar. 2005 FYE Mar. 2004 FYE Mar. 2005 1Q 2Q 3Q 4Q 1Q 2Q 1Q 2Q 3Q 4Q 1Q 2Q ROE (annualized) Ordinary Income (in million yen) (%) 50% 3,000 2,645 40% 2,500 2,201 40% 32% 2,000 29% 26% 1,539 30% 26% 1,424 1,338 1,500 20% 1,000 10% 6% 319 500 0% 0 FYE Mar. 2004 FYE Mar. 2005 FYE Mar. 2004 FYE Mar. 2005 1Q 2Q 3Q 4Q 1Q 2Q 6 1Q 2Q 3Q 4Q 1Q 2Q
Net Operating Revenues vs. Selling, General and Administrative Expenses (in million yen) 5,440 4,907 4,312 3,698 3,644 2,187 2,892 2,806 2,703 2,278 2,109 1,867 FYE Mar. 31, 2004 FYE Mar. 31, 2005 1Q 2Q 3Q 4Q 1Q 2Q Net Operating Revenues Selling, General and Administrative Expenses Breakdown of 2Q of Mar. 31, 2005 1. The ratio of brokerage commission revenues over net 48172 operating revenues is 73%. This means MBH have built 335 540 85 relatively stable revenue structure. 615 (13%) (21%) 2. Revenues excluding brokerage commissions are 27% Net Operating Selling, General and of total revenues and cover about 60% of fixed cost. 336 Revenues Administrative Expenses (8%) 2,110 4,312 million yen 2,892 million yen 1,942 3. MBH break-even point is 500 million TSE trading (49%) (67%) volume. This estimate is based on the following assumption. “Trading value share on TSE” and 1,021 “Revenues excluding brokerage commissions” remain (24%) the same figures as those of 2Q of FYE Mar. 31, 2005. Brokerage (Cash) Brokerage (Margin) Variable Cost 7 Fixed Cost Forex Trades Net Financial Income Temporary Cost Mutual Funds IPO Others
Comparison with Others : Number of Accounts vs. Customers’ Assets in Custody The following indicates “Customers’ assets in custody per account” as of Dec. 31, 2003 , Mar. 31, 2004 and Jun. 30, 2004. Customers’ assets in custody (in 100 million yen) Source : Company Data on website 16,000 Jun. 30, 2004 MBH Ratio of change of Mar. 31, 2004 Customers’ assets in 14,000 custody per account Dec. 31, 2003 (Mar. 31, 2004 to Jun. 30, 2004) 12,000 Matsui E*trade MBH +2.6% Matsui -7.4% 10,000 E*trade +1.1% Rakuten -2.8% 8,000 Rakuten Kabu.com -1.7% 6,000 MBH has made a steady growth. 4,000 Kabu.com 2,000 0 0 100,000 200,000 300,000 400,000 500,000 Number of customers account Rakuten MBH Matsui E*trade Kabu.com 8
Comparison with Others : Retail Trading Value ◆ Market share of trading value; vs. Matsui, E*trade, Rakuten & Kabu.com 1Q of FYE Mar. 31, 2005 21 ％ Market Share of Trading Value E*trade 18 ％ Matsui E*trade Trading Value Share Others 15 ％ 20 ％ 39 ％ 12 ％ Matsui Trading Value Trading Value 15 ％ 9 ％ Rakuten MBH Kabu.com 6 ％ 6 ％ Rakuten Kabu.com 3 ％ 11 ％ MBH FYE Mar.31, 2003 FYE Mar.31, 2004 FYE Mar.31, 2005 9 ％ 1Q 2Q 3Q 4Q 2Q 3Q 4Q 1Q 1Q Top 5 online brokers Matsui E*trade Rakuten Kabu.com MBH won 61% market share of trading value. ◆ Market share of trading value; vs. Nomura, Nikko Cordial & Daiwa 1Q of FYE Mar. 31, 2005 Market Share of Trading Value Market Share of Trading Value 25 ％ Nomura 10 ％ MBH Nomura 20 ％ 9 ％ MBH Nikko Cordial 5 ％ Nikko Cordial 15 ％ Trading Value Trading Value Daiwa Others 10 ％ 5 ％ 71 ％ Daiwa FYE Mar.31, 2003 FYE Mar.31, 2004 FYE Mar.31, 2005 5 ％ 1Q 2Q 3Q 4Q 2Q 3Q 4Q 1Q 1Q Nomura Nikko Cordial Daiwa MBH Source : Company Data on website 9
Margin Trading Provide (*) This is an well-designed unique service services for all customers provided by by combining Nikko Beans “Net Margin Trading” limited online sophisticated trading ★ Various Services ★ brokers services of Nikko Beans including Nikko and educational ● Two-type margin trading:“Classic type ” Beans and “Open-ended” Margin Trading resources of Monex ● User Friendly Trading Rules (Lowest Margin Deposits Rate) ● Reasonable Trading Fees ● Various Order Methods Monex Margin Trading ( “ Stop Loss Order(*)”, “Band Limit Order” and “Surfing Trading” etc.) ● Bidding Auctions for bonus shares available ⇒ Unique and broad range of ● Multi Access Channel (Mobile Phone and PDA, etc) educational contents 11,796 11,528 14,517 9,232 9,306 7,377 1,116 1,073 917 676 1,116 1,073 579 917 676 383 579 376 FYE Mar. 31, 2004 FYE Mar. 31, 2005 1Q 2Q 3Q 4Q 1Q 2Q Margin Trading Balance Average number of Trade (in 100 million yen) 10
Recommend
More recommend
