January 31, 2020
TSE 1st Section: 8698

Financial Results for
3Q of Fiscal Year Ending March 31, 2020

Table of Contents

Table of Contents

p. 1

I. Highlights

p.2 - p.9

II. Consolidated Performance

p.10 - p.28

III. Business Update

p.29 - p.43

Appendix: Group Overview

p.44 - p.57

This is an English translation of Japanese presentation materials prepared in connection with the disclosure of the financial results of Monex Group, Inc. It includes information
derived from the consolidated financial statements of Monex Group, Inc. which are prepared in accordance with International Financial Reporting Standards (“IFRSs”). This material is
not intended to recommend or conduct solicitation for any product or service, etc.
<Forward-looking Statements>
This presentation material contains forward-looking statements that are based on our current expectations, assumptions, estimates and projections about our industry and us. These
forward-looking statements are subject to various risks and uncertainties. Generally, these forward-looking statements can be identified by the use of terms such as "may" "will""expect" "anticipate" "estimate" "plan" and other similar words. These statements discuss future expectations, identify strategies, contain projections of results of operations or of our
financial condition and state other "forward-looking" information. Our operations are subject to risks, uncertainties and other factors that could cause our actual results to differ
materially from those contained in any forward-looking statement.

1

I.

Highlights

II.

Consolidated Performance

III.

Business Update

Appendix. Group Overview

2

Business transformation 1/2

Each segment is striving to create new business models to adapt to thechanging business environment

Japan

Japan Segment plans to transform from a brokerage-model toan asset-management model that aims to increase client assets
after deducting commissions and management fees. Japan
Catalyst, Inc. will drive the development of asset-management
and asset-creation businesses

US

New business initiatives, including the introduction of an
education platform, intend to offset commission decline resulting
from customers’ shift to TS Go/Select and to further increase anddiversify its revenue stream in the medium-term

Crypto Asset

Coincheck has drastically reduced costs to cope with possible
low market trading volume, with the aim to secure an increase inprofits during a market recovery
3

Business transformation 1/2

Japan Segment will strengthen its customer asset services andpromote its transition to an asset-management model•••

Japan Catalyst will enlighten individual investors and promote an engagement
investment with the aim to increase customers’ assets in custody as well as
management fee income. This will be a key engine to our business transformation toan asset-management model
Trust business, IFA and the trading community service “ferci” will serve as assetmanagement and asset-creation services in line with the various financial needs ofour customer base
US equity services will continue to be enhanced to drive further growth in trading fees
Revenue Portfolio
Image after 3 years

Now

Management
Fee

Management
Fee

Net
Financial
IncomeTrading Fee(Japan equity)

Trading Fee(US equity, FX spread etc.)

Trust business/ IFA

Trading Fee(Japan equity)
Trading Fee(US equity, FX spread etc.)

Net
Financial
Income4

Business transformation 2/2

US Segment will use its new trading experience as leverage to expand
and diversify its revenue streams•“YouCanTrade” will offer educational content and gaming experiences for trading
as part of its social networking service. It will not only cultivate new revenue
streams, but will also strengthen the existing brokerage business•New commission-free trading plans will expand our customer base to casual
traders, and increase customer assets and net interest income•

New cryptocurrency offering enables to diversity revenue streams
Revenue Portfolio
Now

Image after 3 years
Education

Education
Net
Financial
IncomeCryptoTrading Fee(US equity, Futures etc.)

Trading Fee(US equity, Futures etc.)

Trading Fee（PFOF*）

Net
Financial
Income※Payment-for-order-flow

Trading Fee(PFOF*)
Crypto5Highlights 3Q of FYE Mar. 2020 (3 months)

1/4

Japan

Trading volume in Monex Securities increased more than market growth,and segment profit* increased to ¥0.9B.

US

With lower interest rate environment and offering commission-free
trading, segment profit dropped to ¥0.3B

Crypto Asset

Despite continuously reducing fixed cost, Coincheck recorded segment
loss* due to prolonged lower market trading volume

Asia PacificDue to Monex Boom Securities’ bad debt reserve of ¥0.11B for its marginloan, segment loss was ¥0.1B (The loan loss provision ratio is 100% withbad debt reserve in 2Q)

Investment

MV I Investment Limited Partnership was expanded its portfolio to 26
companies as of Dec 2019. Recorded valuation loss of shares owned* Segment profit (loss) = Pre-tax profit (loss). The same hereinafter

6

Highlights 3Q of FYE Mar. 2020 (3 months)

2/4◆Total operating revenue after deducting financial expenses and profit attributable to owners of theCompany

Consolidated(JPY million)

Total operating revenue after deducting financial expenses

Pre-tax Profit 869

Quarterly profit attributable to owners of the Company
15,00012,555

11,881

11,017

11,397

11,157

10,000
5,000

951-5,000849-1,5150
2019/33Q

2019/3
4Q

2020/3
1Q

830
2020/32Q

573
2020/3
3Q◆Total operating revenue after deducting financial expenses and cost of sales and segment profit(JPY million)Japan

Total operating revenue after deducting financial expenses and cost of sales
Quarterly profit before income taxes

8,000
6,000
4,000
2,000
0
-2,000-4,000

6,981

5,647
1,136
-1,687

2019/33Q

2019/3
4Q

6,293

5,629

5,598
457
2020/3
1Q

429
2020/32Q

901
2020/3
3Q

7

Highlights 3Q of FYE Mar. 2020 (3 months)

3/4◆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

US

Quarterly profit before income taxes
6,000

5,115

4,996

4,985

4,925

4,514

3,000
620

749

658

574

286

0
2019/33Q

2019/3
4Q

2020/3
1Q

2020/32Q

2020/3
3Q

Asia Pacific(JPY million)

300
150
0
-150
-300

209

186
-29
2019/3
3Q

195

96

-4

-13

2019/3
4Q

2020/3
1Q-119
2020/3
2Q

65

-139

2020/3
3Q

8

Highlights 3Q of FYE Mar. 2020 (3 months)

4/4◆Total operating revenue after deducting financial expenses and cost of sales and segment profit

Crypto Asset(JPY million)

Total operating revenue after deducting financial expenses and cost of sales
Quarterly profit before income taxes

1,274

1,500
1,000

801
518

500

-324

302
-560

0
-500
-1,0002019/33Q

2019/34Q

481
142
2020/31Q-127

92020/32Q

2020/3
3Q

Investment(JPY million)

3,000
2,000
1,000
0
-1,000

10-20

2019/33Q

89
2019/3
4Q

74

12

-2

2020/3
1Q

142

131

2020/3
2Q

-34

-50

2020/33Q

9

I.

Highlights

II.

Consolidated Performance

III.

Business Update

Appendix. Group Overview

10

YoY Comparison (9 months) Consolidated Performance(JPY million)FYE Mar. 2019
3Q
(Apr. 2018–
Dec. 2018)

FYE Mar. 2020
3Q
Variance(Apr. 2019–
Dec. 2019)

Rate ofchangeReference

Total operating revenue after
deducting financial expenses

36,40034,434-1,966

P13: Analysis of Japan segment-5% P15: Analysis of US segment (USD)
P17: Analysis of Crypto Asset segment

SG&A

33,40031,383-2,017

P14: Analysis of Japan segment-6% P16: Analysis of US segment (USD)
P18: Analysis of Crypto Asset segment

The amount equivalent tooperating income

3,000

3,051

51

Other income / expenses (net)

222

13

-209

Breakdown in DATA BOOK P20:
-94% Quarterly consolidated financial results(Other income and other expenses)

Quarterly profit before income
taxes

3,223

3,064

-158

-5%

Quarterly profit attributable toowners of the Company

2,696

2,252

-444

-16%

EBITDA*

9,243

9,098

-145

-2%

2%

* EBITDA ＝ The amount equivalent to operating income + depreciation and amortization cost + interest expense of US segment(the same hereinafter)

11

YoY Comparison (9 months) Segment PerformanceJapan(JPY million)

US

Asia Pacific

Crypto Asset

Investment

2019/33Q

2020/33Q

2019/33Q

2020/33Q

2019/33Q

2020/33Q

2019/33Q

2020/33Q

2019/33Q

2020/3
3Q

Total operating revenue after
deducting financial expenses
and cost of sales

20,092

17,521

14,353

14,435

599

357

1,775

2,556

325

119

SG&A

17,31515,80813,01912,926

654

645

3,393

2,515

7

40

The amount equivalent tooperating income

2,777

1,713

1,334

1,509

-55

-288

-1,618

41

318

79

Other income / expenses (net)

157

75

-106

-29

11

17

446

-17

-10

-0

Quarterly profit before income
taxes

2,934

1,788

1,229

1,480

-44

-272

-1,172

24

308

79

Quarterly profit attributable toowners of the Company

2,423

1,247

911

1,251

-54

-240

-837

-18

279

47

EBITDA

7,348

5,404

3,358

3,870

-2

-199

-1,561

438

318

79

Note

See P13 “total
operating revenue
after deducting
financial expenses
and cost of sales” formore details
See P14 “SG&A” formore details

See P15 “total
operating revenue
after deducting
financial expenses
and cost of sales”
for more details
See P16 “SG&A” formore details

See P17 “total
operating revenue
after deducting
financial expenses
and cost of sales”
for more details
See P18 “SG&A” formore details

12

YoY Comparison (9 months) Analysis: Operating Revenue

Japan : Brokerage commissions and net financial income decreased due to lower
market volume and margin loan balance■ Total operating revenue after deducting
financial expenses and cost of sales(JPY million)
24,00021,00018,00020,092
2,051

17,521

3,435

1,822

15,000

3,571
12,000

6,169
5,132

9,000
6,000

8,438
3,000

■Others (-229)■FX & fixed income (+136)■Net financial income (-1,037) *1■Brokerage commissions (-1,442) *2, 3*1 Net financial income of margin trading balance -963 (-23%)
Market margin balance-20% (ave.)*2 Total trading volume of individual investors in two Japanesemajor equity markets, including ETFs etc.
-16%

6,996

0

2019/3 3Q

Total operating revenue after deducting
financial expenses and cost of sales-12.8% (-2,572)

2020/3 3Q*3 Total revenue reduction in FY19 is expected to be around ¥0.1B
due to the introduction of no-load mutual funds and commissionfree program for margin trading of ETFs/REITs from Dec. 2019
(The revenue reduction in 3Q ¥20M).

13

YoY Comparison (9 months) Analysis: SG&A

Japan : The impairment in the previous fiscal year contributed to lower
depreciation■ SG&A

SG&A Total -8.7% (-1,507)(JPY million)
18,00015,00017,315
1,124
918
1,270
1,571

12,00015,808
1,084
757
1,283
1,457

3,067
3,309

9,000

6,000

9,365

7,919

3,000

■Others (-41)■Advertising expenses (-161)■Communication, freight and information
expenses (+13)■Commissions paid, exchange and association
dues (-114)■Compensation and benefits (+242)■System related expenses (-1,446) ** Rental expenses
Maintenance expenses and data processing
Depreciation cost

-260
-305
-879

0

2019/3 3Q

2020/3 3Q

14

YoY Comparison (9 months) Analysis: Operating Revenue (USD)

US : Net financial income increased due to higher interest rates, growing
customers’ assets in custody, and the expiration of the interest rate swap
receiving fixed interest in Nov. 2018
■ Total operating revenue after deducting
financial expenses and cost of sales(USD thousand)
140,000

120,000

129,471
9,010
23,449132,658
7,170
20,869100,000

80,00037,70448,039Total operating revenue after deducting
financial expenses and cost of sales+2.5% (+3,187)■Others (-1,840)■Other commissions (-2,580)■Net financial income (+10,335)■Brokerage commissions (-2,729) *1,2

60,00040,00059,30956,580*1 The negative revenue impact of TS Go/Selectwas approximately $0.9M in 3Q*2 VIX Daily Average: 16.4→15.0

20,0000
2019/3 3Q

2020/3 3Q

15

YoY Comparison (9 months) Analysis: SG&A (USD)

US : Total expenses have been well controlled while amortization anddepreciation cost increased due to new business development such as thelaunch of cryptocurrency business■ SG&A
SG&A Total +1.2% (+1,354)(USD thousand)
140,000

120,000

100,000

80,00060,000117,437

118,791

15,04014,903

8,399

7,361

14,07917,178

9,405

8,874

22,774

22,38347,741

48,092

2019/3 3Q

2020/3 3Q

40,00020,000■Others (-137) *■Advertising expenses （-1,037）■Amortization and depreciation (+3,099) *■Communication, freight and information
expenses (-531)■Commissions paid and association dues(-391)■Compensation and benefits (+351)* Reclassification by applying IFRS16
Others to Amortization and depreciation 2,129

0

16

YoY Comparison (9 months) Analysis: Operating Revenue

Crypto : Net trading income drastically increased because Coincheck has
provided all of services in 9 months during in this fiscal year

■ Total operating revenue after deducting
financial expenses and cost of sales(JPY million)
3,000

2,556
2,500

2,000

198

Total operating revenue after deducting
financial expenses and cost of sales+44.0% (+781)■Others (+63)■Net trading income (+719) ** Service comparison

1,775
135

1,500

2,358
1,000

In 1Q - 2Q FY2018, new account openings,
purchasing and depositing services of all the altcoins
were under suspension. New account opening andcryptocurrency trading has resumed since 3Q
In 1Q - 3Q FY2019, all the services are available andCoincheck started offering a new cryptocurrency,
Monacoin, from June 2019 and Stellar Lumens from
November 2019

1,640
500

0

2019/3 3Q

2020/3 3Q

17

YoY Comparison (9 months) Analysis: SG&A

Crypto : Coincheck carried out large cost reduction with a focus on fixed cost, after
obtaining a formal cryptocurrency exchange license in January 2019

■ SG&A

SG&A Total -25.9% (-878)(JPY million)
3,500

3,393

3,000

849

2,500

28
250
160

2,000

1,500

2,515
225
188
251
135

1,200
966

1,000

500

906

749

■Others (-624) *■Advertising expenses (+160)■Communication, freight and information
expenses (+2)■Commissions paid, exchange and association
dues (-25)■Compensation and benefits (-234)■System related expenses (-157)* Professional fees decreased after the registration of
Coincheck as a cryptocurrency exchange agency

0
2019/3 3Q

2020/3 3Q

18

QoQ Comparison (3 months) Consolidated Performance（JPY million）

Total operating revenue after
deducting financial expenses

2Q FYE Mar.
2020
(Jul. 2019-Sep.
2019)

3Q FYE Mar.
2020
(Oct. 2019Dec. 2019)

Variance

11,397

11,157-240

P21: Analysis of Japan segment-2% P23: Analysis of US segment (USD)
P25: Analysis of Crypto Asset segment

Rate ofchangeReference

10,446

10,270-176

P22: Analysis of Japan segment-2% P24: Analysis of US segment (USD)
P26: Analysis of Crypto Asset segment

The amount equivalent tooperating income

950

886

-64

-7%

Other income / expenses (net)

50

-17

-67

SG&A

Breakdown in DATA BOOK P20:

- Quarterly consolidated financial results(Other income and other expenses)

Quarterly profit before
income taxes
Quarterly profit attributable toowners of the Company

EBITDA

1,000

869

-131

-13%

830

573

-257

-31%

3,035

2,886

-149

-5%

19

QoQ Comparison (3 months) Segment PerformanceJapan(JPY million)

US

Asia Pacific

Crypto Asset

Investment

2020/32Q

2020/33Q

2020/32Q

2020/33Q

2020/32Q

2020/33Q

2020/32Q

2020/33Q

2020/32Q

2020/3
3Q

Total operating revenue after
deducting financial expenses andcost of sales

5,629

6,293

4,925

4,514

96

65

801

481

142

-34

SG&A

5,248

5,366

4,336

4,227

225

208

805

583

11

15

The amount equivalent tooperating income

381

927

589

287

-129

-143

-4

-102

131

-50

Other income / expenses (net)

48

-26

-15

-2

9

4

13

-25

-0

-0

Quarterly profit before income
taxes

429

901

574

286

-119

-139

9

-127

131

-50

Quarterly profit attributable toowners of the Company

311

623

544

243

-103

-121

21

-138

83

-32

1,660

2,168

1,380

1,077

-99

-113

149

-10

131

-50

EBITDA

Note

See P21 “total
operating revenue
after deducting
financial expenses
and cost of sales” formore details
See P22 “SG&A” formore details

See P23 “total
operating revenue
after deducting
financial expenses
and cost of sales” formore details. See
P24 “SG&A” for moredetails.

See P25 “total
operating revenue
after deducting
financial expenses
and cost of sales” formore details. See
P26 “SG&A” for moredetails.

20

QoQ Comparison (3 months) Analysis: Operating Revenue

Japan : Trading volume increased more than market growth, and so did brokeragecommissions■Quarterly total operating revenue after deducting financial
expenses and cost of sales(JPY million)
8,000
7,000

*Figures in parenthesis is the variance from previous quarter (JPY million)

6,981
6,293

689
6,000

1,303

5,647

5,598

5,629

608

597

620

1,178

1,143

1,230

5,000
4,000

Quarterly total operating revenue after
deducting financial expenses and cost of
sales +11.8% (+664)

605
1,197

2,061
1,761
1,649

3,000

1,731

1,639

2,000

2,928
1,000

2,212

2,127

2,140

2019/3 4Q

2020/3 1Q

2020/3 2Q

2,730■Others (-14)■FX & fixed income (-33)■Net financial income (+122)■Brokerage commissions (+590) **1 Total trading volume of individual investors in two
Japanese major equity markets, including ETFs etc.
+12%
Reversal of allowance for Monex point +2520
2019/3 3Q

2020/3 3Q

21

QoQ Comparison (3 months) Analysis: SG&A

Japan : Total SG&A is well under control despite an increase in variable expenses
due to higher trading volume

Quarterly SG&A +2.3％ (+118)■Quarterly SG&A

*Figures in parenthesis is the variance from previous
quarter (JPY million)(JPY million)
7,000

6,000

5,762

5,698

5,000

355
282
429

381
294
461

545

487

4,000

1,050

5,194

5,248

5,366

418
236
418
470

300
247
426
483

366
274
439

1,074

1,098

1,137

2,580

2,694

2,645

2020/3 1Q

2020/3 2Q

2020/3 3Q

505

979

3,000

■ Others (+66)■ Advertising expenses (+27)■ Communication, freight andinformation expenses (+13)■Commissions paid, exchange andassociation dues (+22)
Compensation and benefits (+39)■■System related expenses (-49)

2,000

3,100

3,095

2019/3 3Q

2019/3 4Q

1,000

0

22

QoQ Comparison (3 months) Analysis: Operating Revenue (USD)

US : Net financial income declined due to lower interest rate. Brokeragecommissions decreased due to lower VIX and an introduction of commissionfree trading plans, TS Go/Select■Quarterly total operating revenue after deducting
financial expenses and cost of sales(USD thousand)
50,00045,00040,000Quarterly total operating revenue after
deducting financial expenses and cost of
sales -9.0％（-4,108）

45,68445,15045,55745,605

2,967

2,890

2,646

2,438

41,497

6,826

2,085

7,711

7,626

6,606

7,438

35,00030,00013,90725,00016,535

16,828

16,596
14,61520,00015,00010,00021,09918,10019,477

19,745

2019/3 4Q

2020/3 1Q

2020/3 2Q

17,3585,000
02019/3 3Q

2020/3 3Q*Figures in parenthesis is the variance from previous quarter(USD thousand)■Others (-353)■Other commission (+613)■Net financial income (-1,981)■Brokerage commissions (-2,387)*1, 2*1 VIX Daily Average: 15.9→13.9*2 DARTS QoQ: Equities -1%
Options +1%
Futures -14%23

QoQ Comparison (3 months) Analysis: SG&A (USD)

US : Commissions paid and association dues decreased by lower trading volume,and so did compensation and benefits■Quarterly SG&A
Quarterly SG&A -3.2% (-1,295)(USD thousand)*Figures in parenthesis is the variance from previous quarter

45,00040,00035,00039,1504,734
2,713

30,0004,778

25,0002,493

20,0008,080

38,326
4,971

39,78940,149

4,835

4,896

2,306

2,383

5,543

5,775

2,979

2,934

3,016

(USD thousand)

38,854
5,172
2,672
5,860

4,837

2,961

3,979
7,740

7,850

6,565

6,792

15,00010,00016,353

14,95816,385

16,311

15,396

2019/3 3Q

2019/3 4Q

2020/3 1Q

2020/3 2Q

2020/3 3Q■ Others (+276)■ Advertising expenses (+290)■ Amortization and depreciation (+85)■ Communication, freight and■information expenses (+27)
Commissions paid and association dues(-1,058)■ Compensation and benefits (-915)

5,000
0

24

QoQ Comparison (3 months) Analysis: Operating Revenue

Crypto : Net trading income significantly decreased against a backdrop of lower
market volume since the previous quarter■Quarterly total operating revenue after deducting financial
expenses and cost of sales(JPY million)

Quarterly total operating revenue after
deducting financial expenses and cost of
sales-40.0% (-320)

1500*Figures in parenthesis is the variance from previous quarter (JPY million)■Others (-31)

1,274
74

1200

■Net trading income (-289)*

900

801
78

600

518
-5

300

1,200

481

302
724

13
522

46

435
290

0
2019/3 3Q

2019/3 4Q

2020/3 1Q

2020/3 2Q

2020/3 3Q* Trading volume in cash trading of Bitcoin in Japan(excluding DMM Bitcoin)
Ave. transaction July-September ¥3,476.1B
Ave. transaction October-December ¥1,846.1B(-47%)
Source: Bitcoin Website in Japanese“Monthly market volume in Japan”(https://jpbitcoin.com/)25

QoQ Comparison (3 months) Analysis: SG&A

Crypto : Under prolonged lower trading volume, Coincheck has drastically reduced
expenses by 28% QoQ and 58% compared to 4Q FY2018

Quarterly SG&A -27.6％ (-223)■Quarterly SG&A

*Figures in parenthesis is the variance from previous
quarter (JPY million)(JPY million)■ Others (-53)■ Advertising expenses (-27)■ Communication, freight and

1,600

1,373

1,400
1,200

1,149

1,000

226

800

11
107
41

192
56
127
54

1,127
151
42
135
60

526
600

421

399

400

information expenses (+33)■Commissions paid, exchange andassociation dues (-17)
Compensation and benefits (-50)

805
64
87
41
46

583

308

75
29

11
59

■
■System related expenses (-108)

258
200

343

419

339

259

151

0
2019/3 3Q

2019/3 4Q

2020/3 1Q

2020/3 2Q

2020/3 3Q

26

Summary of Statement of Financial Position

The difference between “Net capital” and “Non-current assets” is the source offunds for investments and shareholders distribution◆ Summary of consolidated statement of financial position as of Dec 31, 2019
AssetsJPY 1,040.5B

Liabilities
JPY 963.5B

Major assets:
Assets related to financial
instruments tradingbusiness
JPY 793.4B

Major liabilities:
Liabilities related tofinancial instruments
trading business
JPY 949.4B(*1) Non-current assets
Property and equipment
Intangible assets (Goodwill)
Intangible assets (Identifiable intangible assets)
Intangible assets (Software and others)
Equity method investments
Available-for-sale investments in securities (Lv.3)

JPY
JPY
JPY
JPY
JPY
JPY

4.7B
17.1B (*2)
9.6B (*3)
20.1B
0.3B
4.8B

(*2) Goodwill: JPY 17.1B
Japan JPY 7.8B, US JPY 8.9B, Asia Pacific JPY 0.4B(*3) Identifiable intangible assets: JPY 9.6B
US JPY 9.1B, AP JPY 0.5B

OthersJPY 54.8B

Cash and cash equivalents

OthersJPY 14.1B◆The JPY 20.4B difference between Net capital (JPY 77.1B)
and Non-current assets (JPY 56.6B) is the source of funds
for the following:

JPY 135.7B

Non-current assets (*1)

JPY 56.6B

Net capital
JPY 77.1B

1. To comply with capital adequacy ratio regulations forsecurities subsidiaries in Japan and overseas
2. Internal reserve for investments in future businesses
3. Shareholders distribution (dividends + share buyback)27

Shareholders’ Distribution

Total return ratio (*1) is 75% on a multi-year basis◆Total return amount(*2) and total return ratio◆Return on Equity ratio（million yen）
12,000900%15%

Amount of acquisition of own shares(left)
Amount of dividends (left)
Total return ratio(right) 103%

12.9%

800%

10,000700%
600%10%

5,514

8,000

100%

8.3%

7.1%

500%
6,000

260%

4,000

109%

300% 5%

1,162
48%

2,000

1,825

77%
1,537

3,098

31% 5,178

68%

827%

1,229

2,359

1,000

FYE
Mar.2010

FYE
Mar.2012

2,000 3,389

FYE
Mar.2014

200%
100%

2,728 1,459 2,721 1,435

599

0

5.0%

400%

4,030 291%

FYE
Mar.2016

FYE
Mar.2018

691

FYE
Mar.2020

0%

2.9%

4.2%

4.1%

2.0%
0.4%

0%

1.5%

FYE
FYE
FYE
FYE
FYE
FYE
FYE
FYE
FYE
FYE
Mar.2010Mar.2011Mar.2012Mar.2013Mar.2014Mar.2015Mar.2016Mar.2017Mar.2018Mar.2019(*1) Total return ratio = (dividend paid*3 + amount of share buyback*4) /profit attributable to owners of the Company(*2) Total return amount = dividend paid + amount of share buyback(*3) Refer to P55 “Dividend history” for more information of dividend per share(*4) Amount of share buyback : JPY 3.1B in Jun. 2011, 5.5B in May 2013, 1.2B in Jul.-Aug.2015, 1.0B in May-Jun. 2016, 1.0B in May 2017, 3.0B in Feb.-Mar. 2018,
2.0B in Aug. 2018, 3.4B in Jul.-Aug. 2019

28

I.

Highlights

II.

Consolidated Performance

III.

Business Update

Appendix. Group Overview

29

Business Update Japan segment 1/4

Japan Catalyst, Inc. was established to create an engagement fund for retailinvestors
Engagement Investment Fund for Retail Investors
Monex Group is establishing an engagement investment fund for Monex Securities
customers. The fund will seek for investment returns for retail investors as well as
corporates’ growth through long-term engagement with the perspective of retailinvestors, who are the ultimate beneficiary owners of companies
Engagement of
Retail Investors

Fund Size

Investment
ReturnEngagement
Investment Cycle

Engagement with
Corporates

Corporates’
Growth30

Business Update Japan segment 2/4

Goals and action plans of the engagement investment fundNow

The valuation of Japanese equities is significantly lower than global
equities. There is still room for further innovation in Japanese corporate
governance reform to unlock the true value of Japan equities

Action Plan
• Improve corporate governance of Japanese companies byintegrating retail investors as an anchor in the investment chain• Conduct holistic engagement with society as a whole– the media,
the government, the business community and retail investors• Gather and manage assets of retail investors through publicly offeredinvestment funds to realize long-term engagement investmentusing individuals’ super-long-term stable capital

Goal

Revive the Japanese capital markets / Rejuvenate the corporate sector
Accelerate Monex transformation to an asset-management model
Generate investment returns for retail investors and Monex Group31

Business Update Japan segment 3/4

Establish asset-management and asset-creation services to solve social issues inJapan
Service for asset-management model• As a central part of the asset-management
model transformation, usability reform of thediscretionary investment service will be
executed in 1Q of FY20
• Two financial institutions are scheduled to
introduce “MSV COMPASS+” in 1Q of FY20
Monex SP Trust, Inc.
• Monex SP Trust prepares for an inheritancemanagement service in collaboration with
Monex Securities

Asset-creation service for beginner traders

Launched a smartphone app “ferci”
of asset-creation for beginner traders• Investment community app “ferci” with an
SNS functionality enables users to trade
Japanese equities with a simple UI/UX• The app name derives from Japanese words
for “more choices”. “ferci” is designed toprovide with a new choice for asset creation
for those of unfamiliar to the existing
financial services

IFA Services (Independent Financial Advisor)• Monex Securities plans to launch an IFA
service in 1Q of FY20 and delivers portfolio
advices to its customers
32

Business Update Japan segment 4/4

Further expand US equity services and margin trading services for Japan equity
US Equity• Introduced free-commission programs; freeminimum transaction fee since Jul. 2019 andfree purchasing commission for trading partial
ETFs since Jan. 2020
• Number of transactions and number of active
accounts increased by 31%, 28% YoY• Plan to launch a new smartphone app “Monex
US Equity Scouter” in Feb. 2020 (planned)◆ Number of Foreign equities accounts
250,000

Margin Trading of Japan Equity• Promote expansion of margin trading services,aiming to acquire elephant customers andincrease net financial income• TradeStation for Japanese equities trading
gradually increase its transaction volume due tosuccessful acquisition of large customers. The
platform occasionally covers 10％ of totaltransaction volume per day at Monex Securities,
which contribute to an acquisition of margintraders

Timeline for Margin Trading Service

200,000
150,000

Feb. 2020 (planned)

Start offering short-term and one-day
margin trading

100,000

Apr. 2020 (planned)

Launch PTS margin trading services

Summer-Fall2020 (planned)

Start stock lending for margin trading

50,0000

2017/12 2018/3 2018/6 2018/9 2018/12 2019/3 2019/6 2019/9 2019/12

33

Business Update US segment 1/3

New business initiatives to offset commission decline resulting from customers’
shift to TS Go/Select and increase its revenue
・ Commission decline resulting from the new commission-free plans, TS Go/Select,
is expected to be $3-4M in FY19
・ Pricing changes of inactivity fee etc. on legacy products will mitigate the losses inthe short-run and new business initiatives (P.35) will drive its mid-term growth・ Net interest income in 3Q was $12M. Net interest income in FY19 is expected tobe between $49M and $51M (Net interest income in FY18: approximately $45M)
Net interest income & US Federal Fund rate

New business expands to offset the comm. losses
Commission
reduction$3-4M

New Initiatives
Brokerage Commission
Net Financial Income, PFOF, Platform fee(USD million)
60

(%)
3.5

Net interest income from investment(left)

50

3

US Federal Fund rate(right)

40

2.5
2

30

1.5

20

1

10
0
FY2019FY2020

FY2021

FY2022

FY20230.5
FY2012FY2013

FY2014FY2015FY2016FY2017FY2018FY2019* Excluding income from margin trading and stock lending

034

Business Update US segment 2/3

New business initiatives provide an access to new customer base・ With the API integration to outside trading communities, including “TradingView”,
TradeStation will expand its customer base not only to existing advanced traders
but also to intermediate and beginner traders
・ TradeStation Crypto, Inc. launched cryptocurrency offerings of five major
cryptocurrencies in November
・ “YouCanTrade”, a social networking service with educational and gaming
experiences for trading, will create a unique educational platform and a trading
community to generate an education revenue stream
Account growth

Assets in custody(Accounts)(USD million)

100,000

6,000

80,0005,000

60,0004,000

Customer Assets(Securities)
Customer Assets(Cash)

3,000
40,0002,000
20,0001,000
002013/3

2014/3

2015/3

2016/32017/3

2018/3

2019/3

2019/122013/3

2014/3

2015/3

2016/32017/3

2018/3

2019/3

2019/1235

Business Update US segment 3/3"YouCanTrade" will help to vitalize trading in addition to acquiring its new
customer baseFeatures of YouCanTrade

Advanced

・ Education platform provides
various educational contents
to all kinds of tradersService

Gaming*Intermediate

・ Build an environment wherebeginners can easily start
trading with the SNS function

Beginner・ Offer gaming-style
tournaments of mock trading

Products

SNS*

Education* Planned in FY2020

36

Business Update Crypto Asset Segment 1/4

Coincheck lowered its break-even point by cost reduction and strives for the
initiatives of further revenue increase
Initiatives- Started new cryptocurrency offering of Stellar Lumens in Nov. 2019. First in Japan to offer
Stellar Lumens- Launched “Coincheck Installment Investment” in Nov. 2019, the only auto-installment service
for cryptocurrency in Japan that helps customers’ asset creation over the long-term- The Lisk staking service started since Jan. 2020 to provide customers with income gain
opportunities- Expanded OTC services to acquire more large customers

Revenue base / competitiveness-Operate market places for 10 altocoins-

Easy-to-use UI/UX for beginners, reaching young people with little investment experience-

Establish and maintain an organizational structure to comprehensively research and selectnew cryptocurrencies and an in-house development system that allows immediate andflexible development-

Conduct thorough cold wallet management for all cryptocurrencies to minimize risks37

Business Update Crypto Asset Segment 2/4

Aims to increase revenue with the market place service through easy-to-use
smartphone app which usability and profitability are higher
Coincheck Services
Exchange

Market place

Available currencies

BTC only

BTC, 10 Altocoins

Customer segment

Advanced

Beginner

Web (Chart trading)

Smartphone App/Web

No commission, no spread

Spread income

low

high

Covered trading*2

No（Bilateral trading）

Yes

Leveraged trading

Service will end in March 2020*3

No

Proprietary trading,hedge trading

No

No

Platform
Revenue source*1
Profitability*1 Transactions may incur additional swap fees, borrowing fees, deposit and withdrawal fee, and remittance fees
*2 Position risk is well controlled in the way that all customer orders are mostly offset by cover transactions with counterparties*3 Coincheck has suspended new leveraged trading from January 201838

Business Update Crypto Asset Segment 3/4

Coincheck smartphone app ranked as No.1 downloads*
Registered and ID-confirmed Users

Number of app downloads

2.74M
Registered users

1.98M

Users with
ID confirmed

0.94M◆ Accumulated Number of Registered Users
2,000,000

2,000,000

1,792,503
1,792,503

1,816,808

1,882,081
1,882,081

1,933,575
1,933,575

1,975,103

1,975,103

1,816,808

User Acquisitions

In-house digital marketing system
Coincheck keeps track of customer trend as
a part of its data-driven marketing strategy tocreate a high-quality customer baseMonex Group Shareholders’ Benefits
Grant ¥500 worth of Bitcoin to Monex Group
shareholders who opened a Coincheckaccount by end of March 2020
Monex Points Exchangable with
Cryptocurrencies
Monex Points can be exchanged withcryptocurrencies and users can receive themin Coincheck account

1,000,000
1,500,000

0

2018/122019/3

2019/6

2019/92019/12* Bitcoin App downloads No.1
Term: January 2019 to December 2019
Source: App Annie

39

Business Update Crypto Asset Segment 4/4

Provide market insight of crypto-assets and blockchain to investors as well as offer
related services to society
Crypto-assets

A web-based media “Block Insight” delivers latest
trends and news regarding blockchain and cryptoassets. In-house professional writers provide higherquality and competitive information

Crypto-assets and blockchain

Offers holistic database services, delivering
information on companies and products involved in
cryptoassets and blockchain, aiming to expand its
institutional users and planning to shift from free-use
to subscription model

Healthcare information managementbusiness utilizing blockchain, IoT and AI
A smartphone app "Cheeese" gives users Bitcoin

Preparing a platform to manage genomic information,

every day just by reading news feed on the app.

healthcare information such as EHR (Electronic

From Jan. 31, users can receive Bitcoin for theirHealth Record) and PHR (Personal Health Record)

online shopping as wellusing blockchain, IoT and AI
40

Business Update Asia Pacific Segment

The revenue impact on Monex Boom Securities from the prolonged politicalinstability in Hong Kong is limited
Monex Boom Securities (HK)

Cherry Technology Co., Ltd (China)- Recorded additional provision of ¥0.11B for
unallocated margin loans (The loan loss provision
ratio is 100% with bad debt reserve in 2Q). Monex
Boom remains profitable excluding the provision- Providing technology and knowledge of online
brokerage business through a joint venture in
PRC- Limited impact is expected from the prolonged
political instability in Hong Kongthe last eleven consecutive quarters◆ HKD as a percentage of Customers‘ assets in◆ Profit/loss of equity method investments- Recorded profit of equity method investments forcustody (Cash)*
HKD of assets in custody(Cash) (left)(HKD million)(HKD million)

Persentage (right)

600

40%
1

300

0

20%

2018/3

2018/62018/92018/122019/3

2019/6

2019/92019/12* The graph above depicts the percentage and the absolute value of cash
assets in HKD among the total asset in custody held in Monex Boom
Securiites on DATABOOK P3.

0%

0

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

1Q

2Q

3Q

FY17 FY17 FY17 FY17 FY18 FY18 FY18 FY18 FY19 FY19 FY19

41

Business Update Investment Segment

MV1 attracts promising investment opportunities by leveraging its unique network
Details of MV1 FundR&D purpose investment*

Features

Active support for startups in productdevelopment and growth stages

Investment
Size

2.65 billion yen (Founded in Jan 2019)

Investment
RecordInvested in 26 startups having
advanced and innovative services(As of Dec 31)

IoT

Blockchain

Cryptocurrency

Blockchain

Cryptocurrency

Cryptocurrency

Blockchain

Cryptocurrency

Cryptocurrency

Recent Investment Record of MV1
B2B Saas

B2B SaaS

B2B SaaS

STO

IoT/AI*

Including the investments aside from Investment Segment

42

Business Update ESG Management

Contribute to the sound development of the capital market and promote initiatives
that lead to sustainable growth of Monex Group
Materiality Matrix

ESG Initiatives

Disclosing Materiality Matrix

Corporate Governance--

Prioritized ESG topics based on our groupchallenges and the social problems. The
chart below is disclosed on our website*

Established a corporate governance system byglobal standards (P 51)

Risk Management-

Monex Group comprehensively covers eachsubsidiary’s risks and organize the monitoring
system in accordance with the risk map

Cyber Security-

Risk-based approach helps with planning acountermeasures for identified risks and implement
continuous improvement activities

Other ESG Initiatives*https://www.monexgroup.jp/jp/esg.html

Financial education program to “democratize” capital
market in Japan, US, Hong Kong
Disclosed “Code of Conduct” & “Human Rights Policy” *Return rate after the maternity leave in Japan segment
is 100%. Monex also promotes male childcare leave43

I.

Highlights

II.

Consolidated Performance

III.

Business Update

Appendix. Group Overview

44

Our Business Principles
Always a step ahead of the “Y” in "MONEY,"
our name MONEX symbolizes our position as a forerunner in finance.
In the face of an ever-changing future, the Monex Group utilizes state-of-the-art IT
technologies and world-class financial expertise to design innovative ways ofmanaging money and to redefine finance for a new era. We will strive to support
everyone’s investment and economic needs.

To achieve this we are committed to:- Celebrating the diversity of each and every one of our customers and employees;- Driving the future of technology and first class financial professionalism thatempowers traders and investors; and- Creating new value to contribute to all stakeholders

45

Corporate Value

Enhance corporate value driven by the steady growth of online brokeragebusinesses and the mid-to-long term growth drivers

Three mid-to-long term
growth drivers

Steady development of online
brokerage businessJapan

2019/12 EBITDA* ¥ 5.4 B
Collaborate with Coincheck

Finance in a New Age
CryptoAsset

Number of active account is
steadily growing

2019/12 EBITDA*HK¥ -0.2 B

One of the oldest online brokers
in Asia-Pacific region

Explore new businesses with
Blockchain technology on top of
cryptocurrency exchange.

3Q of
FYE Mar. 2019
EBITDA*¥ 9.1 B

Drive Innovation

2019/12 EBITDA* ¥ 3.9 B
USEnhanced
Corporate Value

Investment

Asia
Pacific

Established a flagship fund.
Startup investment in the financial
infrastructure business sector

Global Business Expansion

Consolidated

Market Cap(Dec. 31, 2019)¥ 71.4 B

Regional expansion, JV in mainland
China and Monex Securities Australia*Cumulative total from April to December 201946

Group Overview
 Japan: 1.84M accounts, Crypto Asset: 1.98M users, US: 116K accounts, AP: 14K accounts.
Established global customer base as a group Aim for continuous growth in the online brokerage business and enhancement of crypto asset businessfor retail investors as our core business(JPY 100 million)
60,000◆Consolidated Assets in Custody
Crypto Asset Segment
AP Segment
US Segment
Japan Segment

50,00040,00030,00020,00010,000
0
Mar.

Mar.

Mar.

Mar.

Mar.

Mar.

Mar.

2000

2003

2006

2009

2012

2015

2018 2019

Expanded through M&As inside Japan

GlobalizationMar.

New Beginning47

Group Overview－Revenues, Costs, and Employees◆Total operating revenue after deducting financial expenses
by region and by business
CryptoAsset
4%Othres 2%
Financial income
14%

Investment
1%

AP
2%

1. Equities
23%

Japan
US
40%

1. Options
6%

53%
Revenue
JPY 47,417M

Futures andOptions 1%
FX 9%(FYE Mar. 2019)

1. Futures
11%

Mutual funds 4%

Equities 7%
Othres 1%

Financial income 15%◆Employees by segment and by department
Other 2%
Operation 6%
Techonology

Others 2%

AP
4%

Operation
10%
Marketing4%
3.Technology 31%

Marketing 9%
Japan
34%

Operation 9%

Employees
1,093 persons(as of Mar. 2019)
Others 8%
3.US
47%

Others 3%
Compensation and benefits 4%
System related expenses 3%
CryptoOthers 2%
Asset
Commissions
10%
AP
paid 7%2%
Advertisingexpenses 3%
Communication,
freight and information
expenses 3%

2. System
related expenses
26%

Japan
SG&A
49%
JPY 44,690M

US
39%(FYE Mar. 2019)

2. Compensation
and benefits 16%
System related
expenses 7%

Compensation
and benefits 9%
Communication, freight andinformation expenses 4%Advertising expenses 3%

Commissions paid 4%
Others 3%

Technology 8%

7%

CryptoAsset
15%◆SG&A by segment and by cost items*1. Total operating revenue after deducting financial expenses :Japan accounts for 1/2. Revenue in Japan primarily from equities
while revenue in the US primarily from futures and options*2. Total SG&A : Japan accounts for 50% and US accounts for 40%.
However, half of the Japanese portion is made up of system
related costs, whereas the largest percentage of the US total isfrom compensation and benefits costs*3. Employees: US accounts for 50%. US has a larger number oftechnology-related employees as it internally develops its system
48

Group Overview－Corporate value creation process

Democratization of capital markets is our core value and the key driver for theCompany’s sustainable growth49Group strategy overview

New financial conglomerate in a new age
New Financial

Traditional Financial
Conglomerate

Conglomerate

Bank

Crypto Asset Bank

Coincheck

Securities Broker

Global Online Brokerage

Monex Securities, TradeStation
Securities, Monex Boom Securities,
Monex Securities Australia

Payment Card Company

Blockchain Payment

Coincheck, Blockchain Lab
and more

Investment BusinessMonex Venturesand moreand more

OthersMonex Group50

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 managementmonitoring system- Adopted “company with committees” structure in June 2013
- Each of the three committees is chaired by an independent & outside director

Directors with various backgrounds- Six out of nine directors qualify as “independent & outside” directors and four out of six independent & outside
directors have managed companies- Appointed a lead outside director. Actively exchanges opinions at meetings led by the lead outside director andcomposed mainly by independent & outside directors- Various backgrounds: Management experience (current/former CEOs of listed companies or global companies), expertise(lawyer, CPA), business experience (finance, IT, global business), culture & society (gender, country of residence, nationality)

Fair disclosure and dialogue for retail/institutional investors- Timely and fair information disclosure both in Japanese and English- Active dialogue with shareholders: CEO holds quarterly presentation sessions for retail shareholders- Annual general meeting of shareholders is held on weekend so that retail shareholders can attend the meeting,also we stopped to ask the questioner to make a statement of his/her name or the shareholder number at its
Q&A session(Reference)
15th ordinary general meeting of shareholders (June 22, 2019); Attendance of shareholders: 529
51

Monex Group(As of Dec. 31, 2019)
Listed Holding Company[Japan][US/Europe]

Online Securities Company[Asia Pacific]

Cryptocurrency exchange
service provider

Monex International Limited
Holding Company in Hong Kong

TradeStation Group, Inc.
Holding Company in the U.S.

Monex, Inc.

Online Securities Company

Coincheck, Inc.

Comprehensive investment
service provider

Corporate Venture Capital

Monex Ventures, Inc.
Venture capital business

Cryptocurrency exchange "Coincheck“
Our investment ratio: 99.7％

Online Securities Company
TradeStation Securities, Inc.

Monex Boom Securities (H.K.) Limited
Online securities group in Hong Kong

Finance Company

Service appealing to active traders (US)Monex Finance Corporation

Trading Community

Beijing Representative Office(Monex, Inc.)

Finance company for the group companiesof Monex Group

YouCanTrade, Inc.
(US)

Online Securities Company

Asset Management
Small-lot and low-cost discretionary investment management
wrap service

Cryptocurrency
TradeStation Crypto, Inc.
(US)

Our Investment Ratio: 51％

Monex Securities Australia Pty Ltd(Australia)

Technology
Cryptocurrency
TradeStation Technologies, Inc.

Monex Crypto Bank, Inc.

(US)Management of a web media, Monex Cryptocurrency Lab.
Research, study, plan, development and consulting of
cryptocurrency related services

TradeStation Global Services, S.A.
(Costa Rica)

Technology support
Cherry Technology Co., Ltd[Equity method affiliates]
Our Investment Ratio : 49%* Companies with no reference to investment ratio are wholly-owned subsidiaries of Monex Group, Inc.

52

Overview of Monex Group and Main Subsidiary Companies■ Monex, Inc. (Tokyo, Japan)■ TradeStation Group, Inc. (Florida, U.S.)

One of the major online brokerage firms in Japan- President : Yuko Seimei- Founded in 1999
- Aims to provide retail investors the level of creative products &services offered to institutional investors- First in the Japanese industry to offer unique services & products
for retail investors (Examples): PTS/ECN, stock lending, leadmanager in an IPO as an online broker, RMB bonds, No.1 U.S.
equity service in Japan (the largest number of stock names
available, the longest trading hours & the lowest commissions),
offering the largest-class private equity fund in the world, First
smartphone app for US equity as major online broker- Products & services: Equities (Japan, U.S., Hong Kong), futures &options, FX, mutual funds, bonds, investment education, etc.
- # of total accounts: 1.84 million- # of active accounts: 1.05 million- (“Active accounts”: accounts with balance or with at least one
trade or transaction a year.)- Customer assets held in custody: JPY 4.3 trillion

Online securities group with award-winning trading technology
development capabilities- President: John Bartleman- Founded in 1982, joined Monex Group in Jun. 2011
- An award-winning TradeStation platform recognized and highly
regarded by active traders; a multi-asset platform with a robustalgorithm trading language (EasyLanguage®) that enables
sophisticated analysis capabilities and back-testing ability- Licenses “TradeStation” platform as a technology provider tobrokers in Japan, China and Korea- Products & services: Equities (U.S.), options and futures- # of active accounts: 96,643- Customer assets held in custody: JPY 649.9 billion■ Coincheck, Inc. (Tokyo, Japan)-

President : Satoshi Hasuo
Founded in 2012, joined Monex Group in April. 2018
Offers cryptocurrency exchange service for 1.98 million users
Number of accounts which identity is confirmed: 0.94 million
Customer assets held in custody: JPY 66.9 billion■ Monex Boom Securities (H.K.) Limited-

Offers access to over 12 markets
COO: Ivan Law
Founded in 1997, joined Monex Group in Dec. 2010
First online stockbroker for retail investors in Asia Pacific
Products & services: Equities (12 markets such as Hong Kong,
US, Japan, etc.) Trades available in 6 currencies in a single
trading account- # of accounts with balance: 13,599- Customer assets held in custody: JPY 153,269 million■ Monex Securities Australia Pty Ltd (Australia)- Utilized the system and operating structure of Monex Boom
Securities Group- Managing Director: Alex Douglas- Established in 2010, joined Monex Group in Jun. 2011
The numbers above are as of Dec. 31, 2019.

53

History of Monex Group
Japan

U.S.

1982

- TradeStation Technologies, Inc. is formed as Omega
Research, Inc.

1997

- TradeStation stock lists on NASDAQ

Asia Pacific- Boom Securities (H.K.) Limited is founded (now Monex Boom
Securities (H.K.) Limited), becoming the first in Asia Pacific tolaunch Internet stock trading for retail investors

1999 - Monex, Inc. is co-founded by Oki Matsumoto and Sony Corporation- Begins offering online brokerage service upon complete liberalizationof stock brokerage commissions in Japan
2000 - Monex, Inc. stock is listed on the Tokyo Stock Exchange "Mothers"Market2004 - Monex Beans Holdings, Inc. (now Monex Group, Inc.) is establishedthrough a business integration of Monex, Inc. and Nikko Beans, Inc.
- Monex Group, Inc. stock is listed on the Tokyo Stock Exchange"Mothers" Market in exchange for the delisting of Monex, Inc. stock2005 - Monex, Inc. and Nikko Beans, Inc. merge to become Monex, Inc.
(former name: Monex Beans, Inc.)- Monex Group, Inc. stock changes its listing from the "Mothers"Market to the First Section of the Tokyo Stock Exchange- Monex Business Incubation, Inc. (now Monex Group, Inc.) isestablished- TradeStation acquires Online Trading.com, a direct-accesssecurities brokerage firm2006

- TradeStation Europe Limited receives approval from the
FSA (UK) as an introducing broker

2008 - Acquisition of 90% shares of Tokyo Forex (absorbed in absorptiontype merger by Monex, Inc. in 2015)- Monex Group, Inc. opens a Beijing Representative Office (closed
in 2012 after opening Monex, Inc.'s Beijing Representative Office)2010 - Monex Group, Inc. completes a share exchange to acquire Orix
Securities Corporation- Monex, Inc. merges with Orix Securities Corporation- Monex, Inc. opens a Beijing Representative Office- Boom group companies (now Monex Boom group companies)
become wholly-owned subsidiaries of Monex Group, Inc.

2011

- TradeStation becomes a wholly-owned subsidiary ofMonex Group, Inc. and its stock delisted from NASDAQ- TradeStation Group, Inc. acquires IBFX Holdings, LLC

2012 - Monex Group, Inc. acquires Sony Bank Securities Inc.

- TradeStation Global Services, S.A.
(Costa Rica) is established2013 - Monex, Inc. merges with Sony Bank Securities Inc.
- Monex Group, Inc. becomes a Company with Committees- Monex Group, Inc. implements a stock split (1:100)
2015 - Monex, Inc. merges with Monex FX, Inc.
- Monex-Saison-Vanguard Investment Partners, Inc. is established2017 - Monex Finance, Inc. is established- Monex Crypto Bank, Inc. is established2018 - Monex Cryptocurrency Lab is set up- Coincheck, Inc. joined Monex Group2019 - Acquired Shiawase Partners Trust Co., Ltd and renamed its brand asMonex SP Trust, Inc.
2020 - Japan Catalyst, Inc. is established- Cherry Technology Co., Ltd, which provides technical support in
PRC, is established- TradeStation Crypto, Inc. is established- Monex Securities Australia Pty Ltd launched new online
brokerage firm for individual investors in Australia

As of December 31, 201954

Investors’ Guide■ Shareholders distribution■ Shareholders & indicators per share◆ Our basic policy for shareholders distribution◆ Major shareholders and shareholder breakdown

Year-end
Interim(yen)

Securities companies
FMR LLC (Fidelity)
4.2%
5.2%

Individuals,
Foreigninstitutions, etc.
etc.
5.2%
27.2%

Other institutions
4.2%

MOMO&Co. and Oki Matsumoto
9.3%

Shizuoka
Bank
25.5%

◆ Dividend history

Monex Group, Inc.
3.9%

(as of Sep. 30, 2019)

Financial
institutions
15.3%

Monex Group aims to provide returns to its shareholders
based on the business performance, while securing
investment capacity for growth, and targets at a 75% total
return ratio on a multi-year basis.

The graph made by Monex based on shareholders’ list as of Sep. 30, 2019
and the Large shareholding report.

15◆Indicators per share
10

2.6
6.3
5

7.0

2.7

2.6
2.6

3.7

2.7

FYE
Mar. 2016

FYE
Mar. 2017

FYE
Mar. 2018

Equity attributable to owners of
the Company per share (BPS)

302.03
Yen

290.00Yen

298.50Yen

297.28Yen

296.92
Yen

Earnings per share attributableto owners of the Company(EPS)

12.46yen

1.06yen24.33yen

4.42yen

11.51yen*

Rate of Return on Equity(ROE)

4.1%

0.4%

8.3%

1.5%

3.9%
*

9.6yen5.2yen10.0yen

5.4 yen

2.7yen(Interim)

2.7
Dividends per share

0
FYE
Mar.2016

FYE
Mar.2017

FYE
Mar.2018

FYE
Mar.2019

FYE
3Q of FYE
Mar. 2019 Mar. 2020

FYE
Mar.2020* EPS and ROE for 3Q FYE Mar. 2020 show annualized figures obtainedby multiplying 4/3 to actual figures for the quarter55

Investment Segment – Portfolio 1/2◆ Monex Ventures, Inc.
P2P lendingEC

Settlement

DLT*

Prop Tech（Registered as Type 1 Small
Amount Electronic Public Offering
Service Provider）（Registered as Type 2 Financial
Instruments Business）

AI/Big Data

Online lending

Thematic Investment

B2B Robo-advisor

AI/Big Data

Vacation Rental

SNS

SecurityEC

Settlement（Registered as Type 1 Financial
Instruments Business）

B2B SaaS

E-market place

IoT

Health Care

Health CareDrone

* DLT= Distributed Ledger Technology

56

Investment Segment – Portfolio 2/2◆ MONEX EDISON Investment Limited Partnership
Web media

EC

AI/Big Data

Insure TechEC

Ad Tech◆ MV I Investment Limited PartnershipB2B SaaS

E-market place

B2B SaaS

Logistics

B2B Saas

EC

Asset Management

EC

E-market place

Ad TechB2B Saas

B2B SaaS

B2B SaaS

IoT/AI

57