FYE 03/2005 1Q Financial Results FYE 03/2005 1Q Financial Results July 16, 2004 July 16, 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 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 1
Monex Financial Summary FYE 03/2004 1Q vs. FYE 03/2005 1Q (in million yen, %) FYE 03/2004 1Q FYE 03/2005 1Q Change (3 months) (3 months) 146.1% 1,252 3,081 Operating Revenue 148.7% Net Operating Revenue 1,164 2,896 38.6% SG&A 1,101 1,525 2073.2% Operating Income 63 1,370 1975.6% Ordinary Income 66 1,381 3429.0% Net Income 37 1,328 (04/2003 – 06/2003) (04/2004 – 06/2004) (in million yen, %) FYE 03/2004 1Q FYE 03/2005 1Q Change June 30, 2003 June 30, 2004 137.6 ％ Total Assets 30,936 73,503 46.4 ％ Shareholders’ Equity 8,404 12,304 - 543.8% 504.8% Capital Adequacy Ratio (14.6 ％ ) Cash & Equivalent 8,480 7,238 (25.3 ％ ) Lease O/S 2,339 1,748 2
Monex Financial Summary FYE 03/2004 4Q vs. FYE 03/2005 1Q (in million yen, %) FYE 03/2004 4Q FYE 03/2005 1Q Change (3 months) (3 months) 20.7% 2,552 3,081 Operating Revenue 16.3% Net Operating Revenue 2,490 2,896 10.8% SG&A 1,376 1,525 23.0% Operating Income 1,113 1,370 24.2% Ordinary Income 1,112 1,381 59.4% Net Income 833 1,328 (01/2004 – 03/2004) (04/2004 – 06/2004) (in million yen, %) FYE 03/2004 4Q FYE 03/2005 1Q Change March 31, 2004 June 30, 2004 19.0% Total Assets 61,767 73,503 14.1% Shareholders’ Equity 10,779 12,304 - 500.4% 504.8% Capital Adequacy Ratio 6.8% Cash & Equivalent 6,777 7,238 (8.3%) Lease O/S 1,907 1,748 3
Monex Net Operating Revenue vs. SG&A (in million yen) Net Operating Revenue 2,896 SG&A 2,490 1,979 1,885 1,164 1,525 1,376 1,263 1,180 1,101 FYE 03/2005 FYE 03/2004 1Q 2Q 3Q 4Q 1Q Net Operating Revenue Breakdown SG&A Breakdown 100% = 2,896 (in million yen) 100% = 1,525 (in million yen) Equipment Lease and Maintenance 190 Brokerage (Cash) 8 30 Outsourcing Expenses 327 97 Brokerage (Margin) 89 13 Employees Salaries Monex FX 202 42 Information Costs Financial Income 53 Commissions Paid 286 Mutual Fund 76 (10%) Communication and Freight Underwriting Others 140 Exchange Association Fee 356 Advertising 1,745 447 Amortization of Goodwill (60% ) 160 (15%) 160 Directors Compensation Others 4
Monex Break-even Analysis Spreadsheet FYE 03/2004 FYE 03/2005 1Q 2Q 3Q 4Q 1Q 1. Net Operating Revenue Breakdown (in million yen) Brokerage 908 1,481 1,505 1,768 2,192 Monex FX 80 158 165 249 286 Underwriting 19 36 61 145 30 Financial Income(*), Trading Income and Other Service Revenues 84 97 144 166 237 Others (including Mutual Fund Sales and Agency Commissions) 73 113 104 162 151 Net Operating Revenue 1,164 1,885 1,979 2,490 2,896 2. SG&A Breakdown (in million yen) Variable Cost (Brokerage Revenue + Monex FX) × 0.17 (approximation) 167 278 283 342 421 Fixed Cost (approximation) 934 902 980 1,034 1,104 SG&A 1,101 1,180 1,263 1,376 1,525 3.Ordinary Income (Actual basis) Ordinary Income (in million yen) 66 706 718 1,112 1,381 4.Revenue Ratio of Monex FX Monex FX Trade Amount (in 100 million yen) 1,210 2,202 2,276 3,516 3,982 Monex FX Revenue / Monex FX Trade Amount (%) 6.61 7.17 7.25 7.08 7.18 5.Brokerage Commission per trade Quarterly Trading Volume (thousands) 642 1,004 1,014 1,218 1,493 Average Commission per trade (yen) 1,414 1,475 1,484 1,451 1,468 260 277 279 281 282 Variable Cost per trade (yen) Marginal Income per trade (yen) 1,154 1,198 1,205 1,171 1,186 6.Break-even Point Analysis Fixed Cost (in million yen) = A 934 902 980 1,034 1,104 256 404 474 722 704 Net Operating Revenue other than Brokerage Commission (in million yen) = B A – B (in million yen) 678 498 506 312 400 Break-even Point Estimate (Quarterly) (trades in thousands) 587 416 420 267 337 Break-even Point Estimate (Monthly) (trades in thousands) 196 139 140 89 112 9,324 6,597 6,667 4,230 5,353 Break-even Point Estimate (trades per business day) (*) For your reference (in 100 million yen) 127 188 257 305 425 Average Balance of Margin Trading at the end of each month 5
Monex Break-even Analysis – Number of Trades 1,493 (thousands) Break-even number of trades Actual number of trades 1,218 642 1,014 1,004 416 420 337 267 587 (in million yen) 421 342 283 278 167 1,104 1,034 980 934 902 Revenue excluding 722 704 474 404 brokerage 256 commissions is over 03/2004 1 Ｑ 2 Ｑ 3 Ｑ 4 Ｑ 03/2005 1 Ｑ 60% of fixed cost. Net Operating Revenue excluding brokerage Fixed Cost (approximated) Variable Cost (approximated) FYE 03/2005 1Q ■ Reflecting the strong stock market, individual investors’ trading kept to be good and the quarterly number of executed stock orders exceeded that of previous quarter. ■ The ratio of brokerage commission over net operating revenue is relatively low (76%). Our business structure allows us to obtain stable revenue even under unfavorable market circumstances while we can expand revenue under favorable market circumstances. 6
Nikko Beans Financial Summary : FYE 03/2004 1Q vs. FYE 03/2005 1Q (in million yen, %) FYE 03/2005 FYE 03/2004 1Q 1Q Change (3 months) (3 months) 143.2% Operating Revenue 1,103 2,682 148.2% Net Operating Revenue 1,023 2,544 67.1% SG&A 766 1,280 391.1% Operating Income 257 1,263 400.6% Ordinary Income 252 1,264 424.4% 229 1,202 Net Income (04/2003 – 06/2003) (04/2004 – 06/2004) (in million yen, %) FYE 03/2004 1Q FYE 03/2005 1Q Change June 30, 2003 June 30, 2004 156.2% Total Assets 46,448 118,999 37.8% Shareholders’ Equity 9,367 12,905 - Capital Adequacy Ratio 810.3% 517.1% 101.5% Cash & Equivalent 9,685 19,518 7
Nikko Beans Financial Summary : FYE 03/2004 4Q vs. FYE 03/2005 1Q (in million yen, %) FYE 03/2004 4Q FYE 03/2005 1Q Change (3 months) (3 months) 6.0% Operating Revenue 2,531 2,682 5.3% Net Operating Revenue 2,416 2,544 (3.5%) SG&A 1,327 1,280 16.0% Operating Income 1,089 1,263 16.0% Ordinary Income 1,089 1,264 22.6% 981 1,202 Net Income (01/2004 – 03/2004) (04/2004 – 06/2004) (in million yen, %) FYE 03/2004 4Q FYE 03/2005 1Q Change March 31, 2004 June 30, 2004 25.6% Total Assets 94,724 118,999 10.2% Shareholders’ Equity 11,712 12,905 - 541.9% 517.1% Capital Adequacy Ratio 112.0% Cash & Equivalent 9,206 19,518 8
Nikko Beans Net Operating Revenue vs. SG&A (in million yen) Net Operating Revenue 2,544 2,416 SG&A 1,758 1,719 1,023 1,327 1,280 1,014 929 766 FYE 03/2005 FYE 03/2004 1Q 2Q 3Q 4Q 1Q SG&A Net Operating Revenue Breakdown Breakdown 100% ＝ 1,280 (in million yen) 100% ＝ 2,544 (in million yen) 67 52 Brokerage (Cash) 13 34 127 36 Exchange Association Fee Brokerage (Margin) 293 190 526 Outsourcing Expenses (12%) Financial Income Salaries and Compensation Mutual Funds 1,182 Office rent and maintenance (46%) Beans FX Depreciation Others Taxes and dues Others 916 496 (36%) 9
Recommend
More recommend
