July 28, 2021

TSE 1st Section: 8698

Financial Results for the
1Q of the Fiscal Year Ending March 31, 2022

Our Business Principles
Always a step ahead of the “Y” in "MONEY," our name MONEX expresses ourdesire 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 of managing money andrealizing individual self-fulfillment for an ever-changing future. Our ultimate goal is to
optimize each person’s lifetime balance sheet.
Revised on April 1st, 2021

1

Table of Contents

Our Business Principles

p. 1

Table of Contents

p. 2

I. Highlights

p. 3 -

p.12

II. Consolidated Performancep. 13 -

p. 31

III. Business Update

p. 32 -

p. 46

Appendix: Group Overview

p. 47 -

p. 56

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.

2

I.

Highlights

II.

Consolidated Performance

III.

Business Update

Appendix. Group Overview

3

Business Overview 1/5

Monex Group’s consolidated pre-tax profit performed strongly with the contribution
from the Crypto Asset segment.

Monex Group’s Quarterly Consolidated Pre-tax Profit(¥ Billion）
14

Pre-tax profit¥ 11.1B

Quarterly pre-tax profit

12
10
8
6
4
2
0

2021/3
1Q

2021/32Q

2021/33Q

2021/34Q

2022/3
1Q
4

Business Overview 2/5

Cryptocurrency trading value at Coincheck was high due to higher market volatility.
The period for payout related to earn-out clause ended and Coincheck recorded its
highest profit since becoming a part of Monex Group.
QoQ

Crypto Asset segment Quarterly Pre-tax Profit(¥ Billion）

Pre-tax profit10¥ 9.0B

Quarterly pre-tax profit
payout related to earn-out clause

8

x 1.4

6
4
2
0

2021/3
1Q

2021/32Q

2021/33Q

2021/34Q

2022/3
1Q
5

Business Overview 3/5

Revenue dependence on Bitcoin (BTC) declined as altcoin‘s revenue contribution
increased with the addition of altcoin (ALT) offerings in the Coincheck’s marketplace.
Coincheck’s market place trading value & BTC price（¥ Billion）

Revenue contribution of ALT

（¥）

300

Marketplace trading value

250

BTC price (right)

100%

30

6,000,000

80%

25

4,000,000

150

3,000,000

100

2,000,000

50

1,000,000
2021/3
1Q

2021/32Q

2021/33Q

2021/34Q

2022/3
1Q（Coins）

7,000,000

5,000,000

200

Revenue contribution of BTC# of supported coins

8,000,000

350

0Quarterly revenue contribution of BTC vs ALT

0

20

60%

15
40%

10

20%
0%

5
2021/3
1Q

2021/32Q

2021/33Q

2021/34Q

2022/3
1Q

0• Coincheck focuses on expanding the number of supported coins and offers thehighest number of cryptocurrencies for trading among Japanese crypto asset
exchanges (as of July 28, 2021).
• Revenue contribution of BTC has been on a downward trend, accounting for 12% thisquarter.
6

Business Overview 4/5

Monex has steadily expanded its online securities business overseas under “Global
Vision” and entered the crypto asset-related business under “New Beginning.” Now
it is seeking further growth in the US and Crypto Asset segments by exploring newcapitalization strategy and other growth strategies.
Consolidated total operating revenue
after deducting financial expenses

Further growthstrategy(¥ Billion）
80
60
40
20
0

2010/3
2010年3月期

2021/32021年3月期

202X/3

7

Business Overview 5/5

Quarterly EBITDA* was ¥13.0B.
Monex aims for a sustainable increase in corporate value through business modeltransformation and mid-to-long term growth drivers going forward.

Japan

1Q 22/3 EBITDA¥2.7B

Transformation to asset managementmodel

1Q 22/3 EBITDA
US

Three mid-to-long term
growth drivers¥0.6B

Business transformation in terms ofcustomer demographics and revenue
structure¥9.1B
Crypto 1Q 22/3 EBITDA
Asset Successful customer expansion
primarily from young generations

Blockchain
Technology

Blockchain Technology
From financial areas such as
NFT/IEO to genome data platformby GENEX

Asset Management Capability
AssetManagement

Established a climate impact fund in
addition to discretionary investment
services and an engagement fundPursuing Innovation
Investment

Enhanced
corporate value

Supporting companies that provide
advanced services. Acquiring and utilizing
new technologies such as blockchain

Consolidated

Transformation of existing
business models

1Q FYE Mar.
2022
EBITDA¥ 13.0 B(Reference)FYE Mar. 2021
EBITDA¥ 32.0 B* EBITDA ＝ The amount equivalent to operating income + depreciation and amortization cost + interest expense of US segment (the same hereinafter) 8Highlights 1Q of FYE Mar. 2022 (3 months) 1/4

Crypto Asset segment performed strongly and consolidated quarterly pre-tax profit
was ¥ 11.1B. In 1Q, achieved 50% of ¥ 21.3B of the pre-tax profit of the previous
fiscal year (12 months) .
Segment profit was ¥ 2.1B with an increase in recurring revenues fromJapan

mutual fund and margin trading services, as well as revenues fromgrowth products such as US equities and cryptocurrency CFDs.

US

Segment loss was ¥ 0.2B due to an increase in expenses for mid-tolong term growth strategies including marketing to further expand thecustomer base.

Crypto Asset

Trading volume increased due to higher volatility in the crypto market.
Segment profit was ¥ 9.0B due to the termination of payout to former
shareholders, which was applied until the previous fiscal year.

Asia PacificSegment profit was ¥ 0.1B with stable Hong Kong businessperformance.

Investment

MV1 Fund completed its investments. MV2 Fund was also established,
and the number of investments increased steadily.
* Segment profit / loss represents quarterly profit before income taxes

9Highlights 1Q of FYE Mar. 2022 (3 months) 2/4

Consolidated◆Total operating revenue after deducting financial expenses and quarterly profit attributable to ownersof the Company(JPY million)

Total operating revenue after deducting financial expenses
Quarterly profit attributable to owners of the Company

30,00020,0002021/3
1Q

26,0692021/3
2Q

7,806

3,629

1,494

1,425

29,762

16,826

13,898

13,20810,0000Quarterly Pre-taxes Profit
11,1072021/33Q

2021/34Q

7,2602022/3
1Q◆Total operating revenue after deducting financial expenses and Segment profit

Japan(JPY million)

Total operating revenue after deducting financial expenses
Segment profit (Quarterly profit before income taxes)

10,000
6,811

8,544

7,231

6,513

4,109

5,000
1,147
0

7,373

2021/31Q

565
2021/3
2Q

2,139

1,454
2021/33Q

2021/34Q

2022/3
1Q

10

Highlights 1Q of FYE Mar. 2022 (3 months) 3/4◆Total operating revenue after deducting financial expenses and cost of sales and Segment profit

US(JPY million)
8,000

Total operating revenue after deducting financial expenses and cost of sales
Segment profit (Quarterly profit before income taxes)
6,880
5,406
5,346
5,326

4,000

525

0

2021/3
1Q-4,0002021/3
2Q

1,393

685

597

2021/33Q

5,728

2021/34Q-1852022/3
1Q◆Total operating revenue after deducting financial expenses and Segment profit

Crypto Asset(JPY million)
14,23315,00010,000
5,000
0

820

102

2021/3
1Q

1,773

3,997
725

2021/3
2Q

12,739
6,617

8,996

2,423

2021/33Q

2021/34Q

2022/3
1Q

11

Highlights 1Q of FYE Mar. 2022 (3 months) 4/4◆Total operating revenue after deducting financial expenses and Segment profit

Investment

Asia Pacific(JPY million)
600
400

Total operating revenue after deducting financial expenses
Segment profit (Quarterly profit before income taxes)
324

200
0

394
149

66
2021/3
1Q

528

359

2021/32Q

198

1052021/33Q

2021/34Q

323
862022/3
1Q(JPY million)
200

169

150

144

126

144

125

100
0

2021/3
1Q

2021/32Q

2021/33Q

52

362021/34Q

101762022/31Q

12

I.

Highlights

II.

Consolidated Performance

III.

Business Update

Appendix. Group Overview

13

YoY Comparison (3 months) Consolidated Performance(JPY million)FYE Mar. 2021
Q1
(Apr. 2020–
Jun. 2020)

FYE Mar. 2022
Q1
(Apr. 2021–
Jun. 2021)

Variance

Rate ofchangeReference

P16: Analysis of Japan segment

Total operating revenue after
deducting financial expenses

13,20826,069 +12,860+97% P18: Analysis of US segment (USD)

SG&A

11,264

15,148+3,884+34% P19: Analysis of US segment (USD)

The amount equivalent tooperating income

1,944

10,920+8,976+462%

P20: Analysis of Crypto Asset segment
P17: Analysis of Japan segment

P21: Analysis of Crypto Asset segment

Breakdown in DATA BOOK P9:+298% Consolidated financial results (Other
income and other expenses)

Other income / expenses (net)

47

187

+140

Quarterly profit before income
Taxes

1,991

11,107+9,116+458%

Quarterly profit attributable toowners of the Company

1,425

7,260

+5,835+409%

EBITDA

3,969

13,014+9,045+228%

14

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

US

Crypto Asset

Asia PacificInvestment

2021/3
1Q

2022/3
1Q

2021/3
1Q

2022/3
1Q

2021/3
1Q

2022/3
1Q

2021/3
1Q

2022/3
1Q

2021/3
1Q

2022/3
1Q

Total operating revenue after
deducting financial expenses
and cost of sales

6,811

7,373

5,326

5,728

820

12,739

324

323

169

101

SG&A

5,777

6,036

4,790

5,925

717

3,752

264

248

19

25

The amount equivalent tooperating income

1,034

1,337

536

-197

103

8,987

60

74

151

76

Other income / expenses (net)

113

802

-11

12

-1

9

6

12

-0

-0

Quarterly profit before income
taxes

1,147

2,139

525

-185

102

8,996

66

86

150

76

Quarterly profit attributable toowners of the Company

747

1,374

428

-350

111

6,148

51

69

88

23

2,327

2,653

1,250

602

195

9,083

90

102

151

76

EBITDA

Note

See P16 “total
operating revenue
after deducting
financial expenses”
for more details
See P17 “SG&A” formore details

See P18 “total
operating revenue
after deducting
financial expenses
and cost of sales” formore details
See P19 “SG&A” formore details

See P20 “total
operating revenue
after deducting
financial expenses”
for more details
See P21 “SG&A” formore details

15

YoY Comparison (3 months) Analysis: Operating Revenue

Japan : The recurring revenue from margin trading and mutual fund balance
including Monex Activist Fund increased, so does revenue from growth
products such as US equities and cryptocurrency CFDs.
■ Total operating revenue after deducting
financial expenses(JPY million)
8,000

6,811
508
6,000

0

885

1,040

1,128

1,529

2,036

4,000

2,000

7,373

Total operating revenue after deducting
financial expenses+8.3% (+562)* Figures in parentheses indicate the variance from the previous year (JPY million)[these are comparison of numbers for 3 months YoY]

■Others (+377)■FX & fixed income (+88)■Net financial income (+507)■Brokerage commissions (-409)
*1

*2

*3, 4

*1 Management / success fee for Monex Activist Fund +76
Cryptocurrency CFD revenue +151,
Management fee from mutual fund +111

*2 Net financial income of margin trading +489 (+53%)
Margin balance of Monex Securities (Avg.) +37%

3,734

2021/3 1Q

3,325

2022/3 1Q*3 Total trading volume of individual investors in two Japanesemajor equity markets, including ETFs etc. -3%
Brokerage commissions from Japanese equities -17%
Monex trading volume share 5.63% -> 4.76%(Trading platform, TradeStation for Japanese Equity, has been
terminated since July 2020.)*4 Brokerage commissions from US equity 425→ 667 (+57%)

16

YoY Comparison (3 months) Analysis: SG&A

Japan : Advertising expenses increased due to an increase in new accounts
opening. Fixed costs such as system related expenses are adequately
controlled.
■ SG&A

SG&A Total +4.5% (+259)(JPY million)* Figures in parentheses indicate the variance from the previous year (JPY million)[these are comparison of numbers for 3 months YoY]

8,000

6,000

4,000

5,777

6,036

398
269
402
738

367
407
409
726

1,211

1,347

*1

expenses (+7)■Commissions paid, exchange and association
dues (-12)■Compensation and benefits (+136)■System related expenses (+20)
*2

2,000

0

■Others (-31)■Advertising expenses (+139)■Communication, freight and information

2,759

2,779

2021/3 1Q

2022/3 1Q*1 Account openings+18%*2 Rental expenses-17
Data processing+15
Depreciation expenses +22
Data processing expenses are one-time costs associatedwith the termination of Click Kabu 365 services +33

17

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

US : Other commissions increased due to an increase in trading volume throughcommission-free plans, which surpassed the drop in brokerage commissions.
Net financial income increased even under low interest rates due to higher
engagement in crypto lending and margin activities.
■ Total operating revenue after deducting
financial expenses and cost of sales(USD thousand)
60,00050,00040,00030,00049,5002,270
8,645

12,99751,9891,810

10,006

15,76820,00010,000025,58824,404

Total operating revenue after deducting
financial expenses and cost of sales+5.0% (+2,489)* Figures in parentheses indicate the variance from the previous year (JPY million)[these are comparison of numbers for 3 months YoY]

■Others (-460)■Net financial income (+1,361)■Other commissions (+2,771)■Brokerage commissions (-1,184)*** VIX daily average: 34.5 → 18.0
DARTs (Daily Average Revenue Trades): +15%

2021/3 1Q

2022/3 1Q

18

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

US : To further accelerate the steady increase in the number of accounts,
TradeStation has strengthened its advertising activities. Compensation andbenefits increased as a result of increased staffing as an investment for
future growth.
■ SG&A

SG&A Total +20.8% (+9,259)(USD thousand)
60,00053,77650,00044,518

9,039

40,000

6,284

5,730

3,705

5,929

5,668

3,922

30,00020,00010,000
0

3,058
8,610

17,192

8,911* Figures in parentheses indicate the variance from the previous year (JPY million)[these are comparison of numbers for 3 months YoY]

■Others (+2,755)■Advertising expenses （+2,024）■Amortization and depreciation (+262)■Communication, freight and information*1

expenses (+864)■Commissions paid and association dues(+301)

20,245■Compensation and benefits (+3,052)*2*1 Professional fees +$2.4M*2 Number of employees +92
2021/3 1Q

2022/3 1Q
19

YoY Comparison (3 months) Analysis: Operating Revenue

Crypto : Coincheck’s trading value at the market place significantly increased dueto the volatile crypto market, the addition of altcoin offerings, and asignificant account growth. Especially, trading value of altcoins increased
significantly, which led to approx. 16 times increase in revenue YoY.
■ Total operating revenue after deducting
financial expenses(JPY million)

12,73914,000567

12,00010,000Total operating revenue after deducting
financial expenses+1,453.6% (+11,919)* Figures in parentheses indicate the variance from the previous year (JPY million)[these are comparison of numbers for 3 months YoY]

■Others (+493)■Net trading income (+11,426)

8,000

12,171

6,000

Trading value at market place

4,000
2,000
0

820

2021/3 1Q¥ 23.3B

2022/3 1Q¥ 257.1B

75
745

2021/3 1Q

2022/3 1Q

20

YoY Comparison (3 months) Analysis: SG&A

Crypto : Advertising expenses increased due to proactive marketing efforts suchas TV commercials to acquire new accounts.
SG&A Total +423.6% (+3,035)■ SG&A* Figures in parentheses indicate the variance from the previous year (JPY million)[these are comparison of numbers for 3 months YoY]

(JPY million)

3,752

3,500

843

3,000

1,441

2,000
1,500

500
0

*2

expenses (+75)

2,500

1,000

■Others (+729)■Advertising expenses (+1,382)■Communication, freight and information
*1

4,000

717
115

294
139

2021/3 1Q

59

138
270

63

783

46

277
2022/3 1Q■Commissions paid, exchange and association
dues (+223)■Compensation and benefits (+489)■System related expenses (+138)*1 Includes Management Fee to Monex Group, Inc.
*2
Quarterly increase in # ofverified accounts

2021/3 1Q+19,700

2022/3 1Q+150,427

21

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

4Q FYE Mar.
2021
(Jan. 2021Mar. 2021)
Total operating revenue after
deducting financial expenses

29,762

1Q FYE Mar.
2022
(Apr. 2021Jun. 2021)

26,069Variance

Rate ofchangeReference-3,694

P24: Analysis of Japan segment-12% P26: Analysis of US segment (USD)
P28: Analysis of Crypto Asset segment
P25: Analysis of Japan segment-0% P27: Analysis of US segment (USD)
P29: Analysis of Crypto Asset segment

SG&A

15,18615,148-37

The amount equivalent tooperating income

14,576

10,920-3,656-25%
Breakdown in DATA BOOK P9:- Quarterly consolidated financial results(Other income and other expenses)

Other income / expenses (net)-2,224

187+2,412

Quarterly profit before
income taxes

12,352

11,107-1,245-10%

Quarterly profit attributable toowners of the Company

7,806

7,260

-547

-7%

EBITDA

16,62713,014-3,613-22%

22

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

US

Crypto Asset

Asia PacificInvestment

2021/34Q

2022/3
1Q

2021/34Q

2022/3
1Q

2021/34Q

2022/3
1Q

2021/34Q

2022/3
1Q

2021/34Q

2022/3
1Q

Total operating revenue after
deducting financial expenses andcost of sales

8,544

7,373

6,880

5,728

14,233

12,739

528

323

52

101

SG&A

6,501

6,036

5,498

5,925

4,005

3,752

349

248

16

25

The amount equivalent tooperating income

2,043

1,337

1,382

-197

10,227

8,987

179

74

36

76

Other income / expenses (net)

2,066

802

11

12

-3,611

9

19

12

-0

-0

Quarterly profit before income
taxes

4,109

2,139

1,393

-185

6,617

8,996

198

86

36

76

Quarterly profit attributable toowners of the Company

2,665

1,374

1,189

-350

3,797

6,148

156

69

1

23

EBITDA

3,340

2,653

2,110

602

10,325

9,083

209

102

36

76

Note

See P24 “total
operating revenue
after deducting
financial expenses
and cost of sales” formore details
See P25 “SG&A” formore details

See P26 “total
operating revenue
after deducting
financial expenses
and cost of sales” formore details. See P27“SG&A” for moredetails.

See P28 “total
operating revenue
after deducting
financial expenses
and cost of sales” formore details. See P29“SG&A” for moredetails.

23

QoQ Comparison (3 months) Analysis: Operating Revenue

Japan : Revenue decreased due to a decline in market trading volume ofJapanese equity, but recurring revenue from mutual funds and margin
trading and revenue from growth products such as cryptocurrency CFDs
increased.
■Quarterly total operating revenue after deducting financial
expenses(JPY million)
10,000Quarterly total operating revenue after
deducting financial expenses-13.7% (-1,171)* Figures in parentheses indicate the variance from the previous quarter (JPY million)

9,000

8,544

8,000

890

7,373

1,225

885

■FX & fixed income (-97)

1,128■Net financial income (+189) *2

2,036■Brokerage commissions (-1,257) *3

7,000
6,000
5,000
4,000

6,811
508
1,040
1,529

6,513
633

7,231
640
1,234

1,030
1,538

1,847

1,691

*1 Management fee from mutual fund +32
Mutual fund balance of Monex Securities (Avg.) +10%
Cryptocurrency CFD Revenue +85,

3,000
2,000

3,734

3,312

3,666

4,582
3,325

1,000
0

2021/3 1Q

2021/3 2Q

2021/3 3Q

2021/3 4Q■Others (-6) *1

2022/3 1Q*2 Net financial income of margin trading+203 (+17%)
Margin balance of Monex Securities (Avg.) +9%*3 Total trading volume of individual investors in two Japanesemajor equity markets, incl ETFs etc. -18%
Transaction volume of Monex Securities-25%
Brokerage commissions from US equity
1,047→667

24

QoQ Comparison (3 months) Analysis: SG&A

Japan : Decrease in commissions paid due to lower trading volume of Japaneseequity. Controlled personnel costs was driven by lower performance-linked
bonuses.
Quarterly SG&A -7.2％ (-465)■Quarterly SG&A

* Figures in parentheses indicate the variance from the previous
quarter (JPY million)(JPY million)■ Others (+3)
■ Advertising expenses (-109)■ Communication, freight and10,000

8,000

6,000

4,000

2,000

0

5,777

5,867

5,992

6,501

398
269
402
738

303
386
406
779

284
399
423
851

364
517
430
1,027

1,211

1,222

1,373

1,524

2,759
2021/3 1Q

2,7702021/3 2Q

2,662
2021/3 3Q

2,638
2021/3 4Q

information expenses (-21)

6,036
367
407
409
726

■Commissions paid, exchange andassociation dues (-301)
Compensation and benefits (-177)

1,347

■
■System related expenses (+141) *2,779* Rental expenses+71
Data processing+51
Depreciation expenses +18

2022/3 1Q

Data processing costs are one-time costs associated with thetermination of Click Kabu 365 services+33

25

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

US : Lower volatility (VIX) related to easing of concerns around COVID-19 and the‘meme-stock’ activities*1 resulted in normalization of commission revenue*1 Individual investors like to invest in stocks based on information fromand net financial income.
social networking services (SNS) in the US.
■Quarterly total operating revenue after deducting
financial expenses and cost of sales(USD thousand)

70,0002,601

60,00050,00040,00030,00049,50050,41551,780

2,270

2,614

2,433

8,645

8,296

9,727

12,997

14,446

15,6830

10,16951,9891,810

19,58830
25

10,00620

15,76815
1020,00010,00035

64,283

VIX

25,5882021/3 1Q

25,0592021/3 2Q

23,9372021/3 3Q

31,9242021/3 4Q

24,4042022/3 1Q

5Quarterly total operating revenue after
deducting financial expenses and cost of
sales -19.1%（-12,294）* Figures in parenthesis is the variance from previous quarter(USD thousand)■Others (-792)■Net financial income (-163)■Other commissions (-3,820)■Brokerage commissions (-7,520)*2*2*2 VIX Daily Average: 23.2 → 18.0
DARTs -23%

026

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

US : Advertising expenses increased due to further expansion of customer base.
Professional fees increased for new growth strategies.

■Quarterly SG&A

Quarterly SG&A +4.8% (+2,444)(USD thousand)* Figures in parenthesis is the variance from previous quarter

70,000(USD thousand)

51,332

53,77650,00044,51844,79345,354

6,402

9,039

40,000

6,284

6,186

5,968

5,446

5,730

3,705
5,668
3,058

3,926
5,596
3,618

4,318
5,758
3,740

5,831
3,718

5,929
3,922

8,610

8,636

8,103

9,346

8,911

30,00020,000■ Others (+2,637)■ Advertising expenses (+284)■ Amortization and depreciation (+98)■ Communication, freight and*1

60,000information expenses (+204)■ Commissions paid and association dues (-435)■ Compensation and benefits (-344)*2

10,000017,192

16,831

17,4662021/3 1Q

2021/3 2Q

2021/3 3Q

20,58920,2452021/3 4Q

2022/3 1Q*1 Processional fees +$2.3M*2 Bonus -$1.6M
Number of employees +60

27

QoQ Comparison (3 months) Analysis: Operating Revenue

Crypto : Trading volume remained brisk from the last quarter and revenues
remained high due to the high volatility of crypto asset prices.
■Quarterly total operating revenue after deducting financial
expenses(JPY million)

14,23315,000482

12,739567

Quarterly total operating revenue after
deducting financial expenses-10.5% (-1,494)* Figures in parentheses indicate the variance from the previous quarter (JPY
million)■Others (+85)■Net trading income (-1,579) *10,000* Quarterly trading value at market place

3,997

5,000

1,773
820
0

136

75
745

1,636

2021/3 1Q

2021/3 2Q

13,751

Trading value at market place

12,171

169

2021/3 4Q¥ 293.5B

2022/3 1Q¥ 257.1B

3,828
2021/3 3Q

2021/3 4Q

2022/3 1Q

28

QoQ Comparison (3 months) Analysis: SG&A

Crypto : Coincheck conducted marketing to acquire new accounts. Total expenses
slightly decreased QoQ.
Quarterly SG&A -6.3％ (-253)■Quarterly SG&A

* Figures in parentheses indicate the variance from the previous quarter(JPY million)(JPY million)

4,005

4,000

922

3,752
843

information expenses (+27)

3,000

1,629

1,441

111
284

138
270

839

783

177

220

277

2021/3 3Q

2021/3 4Q

2022/3 1Q

2,000

1,000

0

■ Others (-79)*■ Advertising expenses (-188)■ Communication, freight and

717
115

63
294
139
2021/3 1Q

1,348

1,059
170

59
46

70
434
163
2021/3 2Q

159

315
207

64

91
480

79

■Commissions paid, exchange andassociation dues (-15)
Compensation and benefits (-56)■■System related expenses (+57)*1 Includes Management Fee to Monex Group, Inc.
*2
Quarterly increase in # ofverified accounts

2021/3 4Q+168,558

2022/3 1Q+150,427

29

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 June 30, 2021

AssetsJPY 1,407.1B

Liabilities
JPY 1,310.9B

Major Assets:
Assets related tofinancial instruments
trading business

Major Liabilities:
Liabilities related tofinancial instruments
trading business

JPY 1,045.4B

JPY 1,281.2B(*1) Non-current Assets
Property and equipment
JPY 4.8B
Intangible assets (Goodwill)
JPY 17.3B (*2)
Intangible assets (Identifiable intangible assets) JPY 8.3B (*3)
Intangible assets (Software and others)
JPY 18.9B
Equity method investments
JPY 0.3B
Available-for-sale investments in securities (Lv.3) JPY 6.9B(*2) Goodwill: JPY 17.3B
Japan JPY 7.8B, US JPY 9.0B, Asia Pacific JPY 0.4B(*3) Identifiable Intangible Assets: JPY 8.3B
US JPY 7.9B, AP JPY 0.4B

OthersJPY 135.2B
OthersCash and
Cash Equivalents

JPY 29.7B

JPY 169.9B

Non-current Assets
JPY 56.5B*1

Net Capital
JPY 96.2B◆The JPY 39.7B difference between
Net Capital (JPY 96.2B) and Non-current Assets(JPY 56.5B) is the source of funds for the following:
1. To comply with capital adequacy ratio regulations
for group subsidiaries in Japan and overseas
2. Internal reserve for investments in futurebusinesses
3. Shareholders distribution (dividends + sharebuyback)

30

Shareholders’ Distribution

Given the successful business transformation of each segment, revision ofshareholders’ return policy is under consideration to accelerate further growth.
◆ Total return amount (*2) and total return ratio◆ Return on equity ratio（million yen）
Amount of dividends (left)
Amount of acquisition of own shares(left)
Total return ratio(right)

12,000

900%

827%

800%

10,000

17.3%

18%
15%

12.9%

700%
8,000

600%

5,514

4,000

2,000

0

500%

4,030

6,000

260%

3,098
599

1,229

103%

31%
FYE
Mar.2013

291%

1,162

5,178

109%
2,359

68%
FYE
Mar.2015

1,000
2,728

1,459
FYE
Mar.2017

100%

300%

163%

2,721 1,435
FYE
Mar.2019

8.3%

9%

400%

3,389

2,000

12%

3,092

200%

22%

100%

1,510
FYE
Mar.2021

0%

5.0%

6%
3%
0%

4.2%4.1%
3.9%

2.0%

FYE
Mar.2012

0.4%
FYE
Mar.2015

FYE
Mar.2018

1.5%
FYE
Mar.2021(*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 P53 “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

31

I.

Highlights

II.

Consolidated Performance

III.

Business Update

Appendix. Group Overview

32

Business Update Japan Segment 1/4

Aiming to improve financial access and expand customer base by waiving
purchase fees for odd-lot shares.
Optimizing trading environment for small investors in JapanFee change for odd-lot shares• In a first for a domestic online brokerage, thepurchase fee for odd-lot shares is now free withan aim to broaden customer base .

Conceptual diagram for
expanding customer baseLargetransactions• The number of trading UUs of odd-lot shares in
July grew 1.5 times compared to the previous
month.
• The fee change was made on the back of thefact that over 80% of trades via "ferci," aninvestment social networking app, were for oddlot shares. 70% of ferci users opened their firstbrokerage account with Monex Securities, andthe company aims to continue expanding its
customer base, including young people,
beginners, and small traders.

Smalltransactions

Broaden customer base withthe fee change for odd-lot share

33

Business Update Japan Segment 2/4

UUs for U.S. equity trading grew substantially. Steady increase in the balanceof mutual funds.
US Equity

Mutual Fund

• U.S. stock trading has become the number
one reason for opening a new account at
Monex Securities, helping to raise awarenessof the service as a competitive advantage.
UU for U.S. stock trading grew 1.5 times YoY.

• Use of the daily installment service increased
and the monthly accumulation amountreached ¥5B, driving growth of the entire
mutual fund balance. Small lot mutual fundpurchases of 100 yen are also available.

• With the introduction of new services such as
periodic purchases that allow reinvestment ofdividends, the ratio of U.S. equity revenues tototal brokerage commissions remains strongat 20%. Further upside is expected in themedium to long term.

• "The Monex Japan Growth Equity Fund” hasachieved a 4.8 times increase in investment
principal over the past 20 years (as of May 2021)
when invested monthly. The Nikkei ranked thefund 6th in the "20-Year Accumulative
Investment Performance in Japan.”US equity commissions and its ratio in theentire brokerage commissions
US equity commission (million yen)
Ratio in Brokerage commissions (%)(million yen)
1,200
1,000
800
600
400
200
0

(billion yen)
30%
20%
10%

2021/3
1Q

2021/32Q

2021/33Q

2021/34Q

2022/3
1Q

0%Amount of periodic purchase for mutual fund(As of the end of each month)

6
5
4
3
2
1
0

Jun-20

Sep-20Dec-20Mar-21

Jun-2134

Business Update Japan Segment 3/4

Encouraging individual investors to participate in corporate transformation andfurther democratizing capital markets.
One Year Anniversary of Monex Activist Fund
•
•
•

•

AUM has reached 9.6 billion yen* in one
year since the public offering.
Engagement with portfolio companies isstill ongoing at several listed companies.
In addition to public offerings through five
online securities companies in Japan,
Shinsei Bank also handles the sales
network. Investment advisory foroverseas private placements is scheduled
to start in August 2021.
Increased media exposure in the Nihon
Keizai Shimbun (Nikkei), Bloomberg, etc.
and social recognition as a domestic
activist.
* AUM is the amount of the mother fund for Monex Activist Fund

Base Value(After deducting
management fee)
13,50012,500Favorable performance ofMonex Activist Fund

AUM
(billion yen)

AUM (Mother fund)
Price

14
12
10

11,5008
10,500
6
9,500
8,500
7,500

Asset under management: ¥9.6B(as of July 26)

4
2
0

35

Business Update Japan Segment 4/4

AUM of the discretionary investment management service ON COMPASS+
reached 10 billion yen, and AUM of the IFA business reached 22 billion yen.
ON COMPASS / ON COMPASS+

AUM ¥10.2B*

Online and face-to-face hybrid model of
discretionary investment service- Expand AUM with OTC sales in banks and securities
company

AUM ¥9.7B*

Fully online service of discretionary investment- Significant growth after 1 year from the brand renewal

AUM ¥9.6B*

Engagement fund with a scope of Japaneselisted companies- Investment advisory for overseas private placements isscheduled in August 2021
* AUM above are as of July 26, 2021

IFA BusinessContracted IFA firms increased to 10, andrevenues expanded mainly in bonds sales.
AUM reached 22.0 billion yen (as of the endof June), contributing to the increase in AUM
and accumulation of know-how related to the“wealth management" in preparation for theshift to the asset management model.

Partnership with Shinsei Bank Group
System development for transfering some Shinsei
Bank Group clients’ assets (approx. ¥280B* inmutual funds and ¥200B* in bond) to Monex
Securities is progressing smoothly.
Launched Monex Card, an affiliated credit card.
The partnership is developing a system to allow
customers to accumulate mutual funds with thecredit card.
* Please refer to Monex Group press release on Jan 27

36

Business Update US Segment 1/2

Customer base expansion has reduced dependence on trading volatility.
Account Additions & Client Assets

Trading Volumes• DARTs remain at elevated levels, with YoY growth driven byaccount and asset growth. Sequential change in DARTs isrelated to normalization following ‘meme stock’ activities.

• Significant account growth driven by focused digitalmarketing efforts, including increased use of keyword
searches, displays and social media.
• Multiple asset offerings are attracting a younger, morediverse customer segment interested in a robust self-directed
platform to help them become a more effective investor.
Total Client Assets *1$11.4B +69%

• Commission-free trading has encouraged greater customer
engagement with the TradeStation platform• Volatility (VIX) has declined by 48% YoY as pandemic-related
concerns have eased.
DARTs

Total Active Accounts *2

214,533 +15%

157K +33%

2021/3 1Q vs. 2022/3 1Q

As of Jun. 30, 2020 vs. Jun. 30, 2021（$M） Quarterly growth of client assets and active accounts （Accounts）
12,00010,000180,000
Number of active accounts
Total client assets

8,000

150,000
120,000

300,000

90,0004,000

60,000100,000

30,00050,000

0

0

DARTs

200,000

6,000

0

30

VIX

25
20
15
10
5

Q2
Q3
Mar-18Mar-19Mar-20Mar-21
Jun-21
2020/3*1 Customers’ Assets in custody include the balance of foreign stocks and some deposits of Monex, Inc. and Asia-Pacific Segment.
*2 Includes active crypto accounts beginning December 1, 2020.

40
35

250,000

150,000

2,000

DARTs by quarter reflect less dependence on VIX

Q1

Q4

Q1

Q2

Q3

2021/3Q4Q1

02022/337

Business Update US Segment 2/2

TradeStation is moving forward with its transformational strategy to support
the expansion of legacy and new businesses to a wider audience of investors.
TradeStation Crypto (TCI)

Commission Revenue• Brokerage commissions and PFOF revenue in total were
$37.6M in 1Q.
• Revenue from brokerage and other commissions has beensustained, even after the launch of commission-free plans to
consumers.
• Expanding API partner base creates more diversified sourcesof commission revenue. API trading revenue grew by over
114% YoY, to more than 5% of commission revenues.

（$Million）

60

Equities

Options

50

Others *PFOF

40Futures

Launch ofcommission-free
plans

30

• TCI brokerage commissions and fee revenue was $1.9M;
crypto lending generated net interest income of $1.3M.

TradeStation Evolving in a Dynamic Market• The combination of commission-free trading, low interest
rates and heightened consumer interest has resulted in an
expanding addressable market for TradeStation.
TradeStation is focusing on proactive marketing to further
acquire new accounts.
• TradeStation is proactively increasing personnel to expand
legacy and new businesses.

20
10
0

• TradeStation has grown its relatively new crypto revenue
streams through brokerage account growth as well as lendingof crypto asset to institutional borrower counterparties.

1Q

2Q

3Q

4Q

1Q

2Q

2020/32021/3* Including commissions of crypto, mutual funds and others.

3Q

4Q

1Q
2022/3• TradeStation is considering measures to its realize growthstrategy, including capital policy.
38

Business Update Crypto Asset Segment 1/4

Coincheck focuses on acquiring new customers and maintains its position as aleading company in the Japanese crypto asset industry.
Strong Support among Young Generation

Leading Company Among Japanese Crypto Exchanges

No.1 app DLs*1 and supported coins among domestic

-

4.15M

-

crypto exchanges- # of app downloads(+1.19M, +40% YoY)

- # of verified accounts 1.35M(+0.39M, +41% YoY)
- # of supported coins 16 coins (as of Jul. 28, 2021)
Coincheck’s share in # of verified
accounts among 26 domestic
exchanges*2 as of May 31, 2021-

“Coincheck App” has been used by many people as
their first account for trading crypto assets, thanks
to its UI/UX that is easy to use even for beginners.
Coincheck has strong support among young
generations with 60% of verified account holders intheir 20s and 30s.
Coincheck is striving to improve the usability of its
services in order to continue to realize its corporate
mission to make the exchange of new valueseasier, and renewed its app in May. 2021. About
70% of respondents rated the chart screen as"easier to use" after the renewal. *3
5%29%■ Coincheck■ Other Japanese exchanges*1 Among Japanese crypto asset exchange apps. Term: Jan. 2021 to Jun. 2021.
Source: AppTweak*2 Source: Monthly crypto asset trading status table of Japan Virtual and Crypto assets
Exchange Association (JVCEA)

Age distribution ofverified accounts

35%

60%

20-30s40-50sover 60*3 In a closed beta test conducted prior to the release of the redesigned app(Among android app users )39

Business Update Crypto Asset Segment 2/4

Coincheck maintains a high operating profit margin while focusing on new
account acquisition with marketing.
Operating Profit Margin

Marketing Expence and Number of Accounts• Coincheck has a low-cost structure with a small
increase in variable costs even during active markets.
Operating profit margin in 1Q was 71%.

• Coincheck’s populality increased driven by TVcommercials and account openings stayed strongin 1Q. The number of verified accounts increased
by 150K. Coincheck resumed TV commercials inJuly.

• Even as the scale of business expands, fixed costs
are kept under control, and variable costs other thanadvertising expenses are small. Coincheck
maintains a cost structure that can generate large
profits when the market is booming.
Quarterly amount equivalent to operating income
and operating profit margin

Quarterly advertising expenses and QoQ account growth（¥ Billion）

12
10
8
6
4
2

The amount equivalent to operating income
Operating profit margin (right)• Coincheck’s strength in in-house marketing
enabled highly cost-effective marketing.

（Accounts）（¥ Billion）

180,000

80%
1.5
60%
40%
20%

Advertising expenses

150,000

QoQ account growth

120,000

1.0

60,0000.5

0.0
0%2021/32021/32021/32021/32021/32021/32022/3
1Q
2Q
1Q
2Q
3Q
4Q
1Q
* Operating margin = The amount equivalent to operating income / Total operating revenue after deducting financial expenses
0

90,00030,0002021/33Q

2021/34Q

2022/31Q

040

Business Update Crypto Asset Segment 3/4

Coincheck is the Japan’s first NFT marketplace among domestic crypto asset
exchange business and conducted Japan’s first IEO.
Japan’s First IEO

Non-Fungible Token (NFT)• Coincheck NFT (β version) is monetized from Mar. 2021.
• Coincheck covers a wide range of NFT application areas witha focus on entertainment; expanding collaboration withrelated companies to comprehensively capture NFT-related
revenue opportunities.

• Coincheck launched Japan’s first IEO platform “CoincheckIEO” in July.
• Palette Token surpassed its funding goal of 931.5 million yen
in just 6 minutes from the start of application. The token isscheduled to be listed on July 29.

Coincheck NFT (β version) introduction examples(including scheduled)
Sharely (Virtual Shareholders Meeting Support Service)
Blockchain games

Games

The Sandbox
game items

Idol group

Idols

Football game

KIRIYA PICTURES
collaboration
Movie’SKE48’limited cards‘Sorare’Sportsofficial players’
cards• In response to the "Revised Act on Strengthening Industrial
Competitiveness." enacted in Jun. 2021, which allows forvirtual-only shareholders meetings without a fixed location asa special exception, Coincheck started to support virtual-only
shareholders meetings.
• Coincheck entered into a business alliance with Video
Matching Inc. to strengthen support for video distribution ofshareholders meetings.
41

Business Update Crypto Asset Segment 4/4

Coincheck supports the primary to secondary distribution of crypto assets
through its IEO business, and contributes to the further development ofcrypto assets and the blockchain industry.
Building a Digital Economic Zone Through Expansion of Each BusinessSupporting crypto asset
fundraising and community
management

Crypto asset
Primary
distribution
Coincheck IEO

NFTSecondary
distribution
Coincheck NFT

Crypto asset
Secondary
distribution
Exchange& marketplace

NFT
Primary
distribution
Coincheck NFT

Supporting the realization ofmonetization for authors andcontent holders

Providing new revenue opportunities ofdigital contents and supporting thedevelopment of fan communities

42

Business Update Asia Pacific Segment

Asia Pacific segment showed steady growth despite a decline in transaction
volume from the previous quarter.
Monex Boom / Monex Australia

Cherry Technology Co., Ltd (China)

U.S. equity trading remains popular, whichconnects orders to TradeStation.
OthersUS equities

45%

Providing technology and knowledge of theonline brokerage business through a joint
venture in PRC. Account openings slowed as themarket stagnated after COVID-19 recovery.
Profit of equity method investments was ¥12M.

6%
Market trading
volumeHong Kongequities49%（# of Trades）
7,000（million yen）

Quarterly DARTs

6,000

Profit of equity method investments

30

5,000
4,000

20

3,000
2,000

10

1,000
0

2020/3 2020/3 2020/3 2020/3 2021/3 2021/3 2021/3 2021/3 2022/3
1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

1Q

0

2020/3
1Q

2020/32Q

2020/33Q

2020/34Q

2021/3
1Q

2021/32Q

2021/33Q

2021/34Q

2022/3
1Q

43

Business Update Investment BusinessContinued to expand investment portfolio with the establishment of the MV2fund following MV1.
Investment Entity

Investment Portfolio

MV1 fund to shift to incubation phase

Investment
Size
Investment
Record2.65 billion yen (Founded in Jan.2019)
Completed investment phase with 58
companies by Apr. 2021, to shift to the
incubation phase

Established MV2 fundEstablished Apr. 2021
Investment
Invested 5 start-ups as of today
RecordMV1 FundMV2 FundMonex Ventures
Monex Group, etc.
Approx. 90
investments

New investment of MV2 fundPet-tech

HR Marketplace* XR is the representation technology such as VR, AR and MR. X-Tech is theconvergence of existing field and technology such as Agritech Legaltech

44

Business Update ESG Management 1/2

Invigorated DEI (Diversity, Equity & Inclusion) initiatives, including revising its
corporate philosophy and formulating a sustainability statement
Committed to building a sustainable society based on DEI

Corporate Philosophy with
Sustainability at the Core
New corporate philosophy, “realizing
individual self-fulfillment" and “optimizing
each person’s lifetime balance sheet,"
expresses a commitment to building asustainable society through DEI practices.

Sustainability Statement
Release of a statement showing the board of
directors’ commitment to sustainability
Website:https://www.monexgroup.jp/en/esg/mg_esg.html

Expanding DEI efforts

Recent DEI Initiatives

Monex Group considers human resources tobe one of its most important corporate assets,
and has expressed its commitment topromoting diversity and recognizing diverse
values both within and outside the company
in its Corporate Philosophy, Sustainability
Statement, and Monex Group Human Rights
Policy.

• Established ESG/Sustainability Task Force• Joined and signed “The Valuable 500”
• DEI lecture program in Japan branches• Won Gold award for PRIDE Index for two years
straight• The maternity leave return rate in the Japan
segment and the average annual salary ratio
between men and women are disclosed on our
website.

45

Business Update ESG Management 2/2

Established a climate impact fund to address the global environmental issues inthe scope of our core business as a financial institution.
Commencement of transactions related to environment-related assets

Sustainable Finance

Entry into the J-credit trading market• From this fiscal year, we have established"Sustainable Finance" as a materiality matrix
key item, expressing our will to contribute tosustainability in the capital market business,
the Group's core business.

• Monex was the first major online securities
company in Japan to enter the J-credit
trading market in April 2021.

• The Monex Climate Impact Fund, which
Monex Group is helping to establish, wascreated in July and is scheduled to begin
managing environmental assets in the fall.

• Emissions trading will play an important rolein the global effort to achieve "carbon
neutrality," the goal of reducing greenhousegas emissions to virtually zero by 2050.

• Aiming for a highly reliable product design
and management system that automaticallymeasures the environmental impact of
portfolio assets and provides highly
transparent reporting to investors.
46

I.

Highlights

II.

Consolidated Performance

III.

Business Update

Appendix. Group Overview

47

Group Overview－Revenues, Costs, and Employees
Total operating revenue
after deducting financial expenses

2％

1％¥73.7B28％

FYE Mar 2021

Selling, general andadministrative expenses

2％

0％

2％

12％
39％

¥49.9BFYE Mar 2021

46％

Number of Employees

1％ 0％

5％ 0％

accounts

As of Mar 2021

4％

59％

FYE Mar 2021

9％

■ Japan Segment

13％
3.3 M

¥23.8B

62％

Number of Accounts*

36％

2％
25％

40％

30％

The amount equivalent tooperating income■ US Segment

1,129

As of Mar 2021

36％

■ Crypto Asset Segment■ Asia Pacific Segment■ Investment Segment

46％*Refer to the Databook for FYE Mar 2021
48

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 and outside director

Directors with various backgrounds- Independent and outside directors accounts for about two third of the board of directors.
- Appointed a lead outside director. Actively exchanges opinions at meetings led by the lead outside director andcomposed mainly by independent and outside directors- Various backgrounds: Management experience (current/former CEOs of listed companies or global companies), expertise(lawyer, CPA, patent attorney), business experience (finance, IT, global business), culture and society (gender, country ofresidence, age)

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
49Monex Group(As of June 30, 2021)
Listed Holding Company[Japan][US/Europe]

Online Securities Company[Asia Pacific]

Crypto asset exchange
service provider

Monex International Limited
Holding Company in Hong Kong

TradeStation Group, Inc.

Holding Company in the U.S.

Online Securities Company

Coincheck, Inc.

Monex, Inc.

Comprehensive investment
service provider

Crypto asset exchange "Coincheck“
Our investment ratio: 99.6％

Online Securities Company
TradeStation Securities, Inc.

Asset Management

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

Service appealing to active traders (US)Monex Boom Securities (H.K.) Limited
Online securities group in Hong Kong

Trading Community

Beijing Representative Office(Monex, Inc.)

YouCanTrade, Inc.
(US)

Online Securities Company

Crypto Asset
Investment Advisory and Agency BusinessCorporate Venture Capital

Venture capital business(US)A custodial trust service provider which manages
and disposes trust properties such as securities
and cash under instructions from the settlor

Monex Securities Australia Pty Ltd(Australia)

Technology

Custodial trust businessMonex SP Trust, Inc.
Monex Ventures, Inc.

TradeStation Crypto, Inc.

TradeStation Technologies, Inc.

Technology support

TradeStation Global Services, S.A.

Cherry Technology Co., Ltd[Equity method affiliates](US)Our investment ratio: 91.6％* Companies with no reference to investment ratio are wholly-owned subsidiaries of Monex Group, Inc.

(Costa Rica)

Our Investment Ratio : 49%

50

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

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 andservices offered to institutional investors- Products and services: Equities (Japan, U.S., China), futures andoptions, FX, mutual funds, bonds, cryptocurrency CFD, etc.
- # of total accounts: 1.96 million- Customer assets held in custody: JPY 5.2 trillion■ TradeStation Group, Inc. (Florida, U.S.)

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. Licenses “TradeStation” platform for
US equities as a technology provider to group's securities
companies- Products and services: Equities, options, futures and crypto asset,etc.
- # of active accounts: 156,961- Customer assets held in custody: USD 11.359 billion■ Monex Ventures, Inc. (Tokyo, Japan)

Venture capital- President: Seiichiro Wada
- Founded in 2005
- Investment size of a flagship fund “MV I Investment Limited
Partnership”: JPY 2.65 billion■ Coincheck, Inc. (Tokyo, Japan)

Crypto asset Exchange/Marketplace agency- President: Satoshi Hasuo- Founded in 2012, joined Monex Group in Apr. 2018
- Cryptocurrencies available: Bitcoin (BTC), Ethereum (ETH),
Ethereum Classic (ETC), Ripple (XRP), NEM (XEM), etc.
- # of verified users: 1.35 million- Customer assets held in custody: JPY 329.3 billion■ Monex Boom Securities (H.K.) Limited (Hong Kong)First online stockbroker for retail investors in Asia Pacific-Offers access to over 12 markets
COO: Ivan Law
Founded in 1997, joined Monex Group in Dec. 2010
Products and services: Equities (12 markets such as Hong Kong,
US, Japan, etc.), Futures, and Trades available in 6 currencies in asingle trading account- # of accounts with balance: 21,502- Customer assets held in custody: JPY 228.0 billion■ Monex Asset Management, Inc.
Investment management service- Utilized the system and operating structure of Monex Boom
Securities Group- President: Tomoshige Nakamura- Founded in 2015

■ Japan Catalyst, Inc.

Investment Advisory Business- President: Taro Hirano- Founded in 2019
The numbers above are as of June 30, 2021

51

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- Monex-Saison-Vanguard Investment is renamed as Monex AssetManagement, Inc.

- 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 June 30, 2021

52

Investors’ Guide■ Shareholders distribution■ Shareholders & indicators per share◆ Our basic policy for shareholders distribution◆ Major shareholders and shareholder breakdown◆ Dividend history(as of March 31, 2021)

MOMO&Co. and Oki Matsumoto
9.6%

Shizuoka
Bank
23.8%

Monex Group, Inc.
Securities companies Other institutions 0.5%
4.1%
2.7%

Foreigninstitutions, etc.
22.6%

Individuals,
etc.
23.6%

(yen)
Year-end
Interim

15

Financial
institutions
13.2%

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 March 31, 2021
and the Large shareholding report. The number of outstanding shares is258,998,600 shares as of March 31, 2021.

◆Indicators per share
FYE
Mar. 2018

FYE
Mar. 2019

FYE
Mar. 2020

FYE
Mar. 2021

1Q FYE
Mar. 2022

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

298.50yen

297.28yen

297.70yen

347.67yen

369.72yen

Earnings per share attributableto owners of the Company(EPS)

24.33yen

4.42yen

11.59yen

Rate of Return on Equity(ROE)

8.3%

1.5%

3.9%

17.3%

31.4%
*

10.0yen

5.4 yen

5.9yen12.0yen

TBD

10

7.5
6.3
5

2.6
0

2.7

2.6

FYE
Mar.2017

3.7
FYE
Mar.2018

3.2

2.7

2.7

FYE
Mar.2019

FYE
Mar.2020

4.5

Dividends per share

FYE
Mar.2021

55.82yen 112.71yen** EPS and ROE for 1Q FYE Mar. 2022 show annualized figures obtained bymultiplying 4 to actual figures for the quarter53

Investment Segment – Portfolio 1/3◆ Monex Ventures, Inc.
P2P lendingEC

Settlement

DLT*

Prop Tech

Online lending

Thematic Investment

AI/Big Data

Vacation Rental

B2B SaaS

E-market place

Settlement

Health Care

Health Care

（Registered as Type 2 Financial
Instruments Business）

AI/Big Data

（Registered as Type 1 Financial
Instruments Business）

IoT

Security

EC

Drone

* DLT= Distributed Ledger Technology◆ MONEX EDISON Investment Limited Partnership
Web media

EC

AI/Big Data

Insure TechEC

Ad Tech54

Investment Segment – Portfolio 2/3◆ 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

B2B SaaS

Agri-TechB2B Saas

Insure Tech

KYC / Big Data

B2B SaaS

Robotics

Marketplace

AI / Sports-tech

Drone

Blockchain

HR-TechB2B SaaS

Live Concert

Insur Tech

Gaming55

Investment Segment – Portfolio 3/3◆ MV I Investment Limited PartnershipB2B SaaS

EC

EC

VR

Audio Content

MarketingVR

Healthcare

Elderly CareB2B SaaS◆ MV II Investment Limited Partnership
Pet-tech

HR Marketplace56