Morningstar Japan K.K
Third Quarter Financial Results
Third Quarter Ended December 31, 2020
(Fiscal Year Ending March 31, 2021)

January 27, 2021
Morningstar Japan K.K
Representative Director & President
Tomoya Asakura

Part 1
Summary of Consolidated Financial Results2

Consolidated Financial Results・All-time highs in revenue, ordinary income and net income
・9th consecutive quarter of increased revenue - a record high for 4 quarters
running・Ordinary income has grown for 12 quarters in succession, exceeding the oldrecord for 9 quarters in a row（¥ Thousand）

FY 2020
Apr.–December.2019

FY 2021
Apr.–December.2020

Increase△Decrease
(%)

Sales

4,931,171

5,479,100

11.1

Operating profit

1,160,331

1,284,924

10.7

Ordinary profit

1,398,522

1,579,304

12.9

Net profit

953,607984,969

3.3※ Net Profit refers to Net Profit attributable to owners of the parent.

3Changes in consolidated ordinary income
After the Lehman shock, profits increased for the 12th consecutive term
and reached record highs for the 9th consecutive term.

（¥ million ）
1,600

1,579
1,397

1,400

1,398

1,270
1,189

1,200

1,030
1,000

765

800

802

552

600

484
400

340

357

Apr-Dec
2008

Apr-Dec
2009

403

200

0

Apr-Dec2010

Apr-Dec Apr-Dec Apr-Dec
2011
2012
2013

Apr-Dec
2014

Apr-Dec
2015

Apr-Dec
2016

Apr-Dec Apr-Dec Apr-Dec
2017
2018
2019

Apr-Dec
2020

4Comparison of consolidated ordinary income
compared to the same quarter of the previous year
After hitting the bottom in 1Q, ordinary income for 3Q and 4Q rose more than 30% year-on-year.
（¥ million ）

600

596

13.9％
Down

513
500

557
510

33.3％ Up
32.3％ Up

417
385

400

300

200

100

0

2019年
April
~ June
4月～
6月
2019
第(31months)
四半期
1Q（3ケ月間）

2020年
April~ June
4月～
6月
2020
第(31四半期
1Q
months)（3ケ月間）

2019
July 年~
September
月～9月
7
第22019四半期
2Q (3 months)（3ケ月間）

2020
July 年~月～9月
7September
第22020
四半期
2Q (3 months)（3ケ月間）

2019年~
October
December
月～12月
10
第32019四半期
3Q (3 months)（3ケ月間）

2020年~
October
月～12月
10December
第32020
四半期
3Q (3 months)（3ケ月間）

5

Change in sales by major services / product
Both the SaaS (Software as a Service) business, asset management data providing business and the private
placement investment funds-driven asset management business showed steady growth.
（¥ Thousand）

FY 2020
Apr.–December.
2019

FY 2021
Apr.–December.
2020

355,826455,245
150,918

372,719476,886
141,802

4.7%
4.8%
-6.0%

138,139
27,517124,059
36,935-10.2%
34.2%

252,962
273,329

192,123
77,178-24.1%-71.8%

259,671

209,308-19.4%

Carret Asset Management

1,917,700
809,744

1,677,362
833,565-12.5%
2.9%

SBI Bond Investment Management504,692

721,571

43.0%

SBI Regional Revitalization Asset Management

51,755406,061

7.8 times

Service / ProductIncrease
Decrease（%）

Fund Data
Financial
Service Business（Data Solution）

Data for tablet devices
Data for Smartphones, PC
Fund Report
Stock Newspaper subscription fee（Newspaper）（Web）
Media Solutions
Financial
Service Business（Media Solution）

SeminarWeb Advertising
Web consulting(Gomez Consulting Business)
SBI Asset Management

AssetsManagement（Investment trust fee）

6

Part 2
Overview of the Financial Services Business

7

The SaaS (Software as a Service) business provides asset management-related data for tablet devices

Tablet devices with the ‘Wealth Advisors’ application have now surpassed the ‘100,000’
mark. Both the number of user companies and tablets have delivered double digit
growth from the same period last year.
(Number of(Number of tablet)
Number of companies：
10.7％ Up

120,000

Megabanks and other major banks

100,000

80,00060,0003

Trust Banks

3

Net Banks

2

Regional banks73

Shinkin banks

54

Credit Associations

4

Labor credit associations

14

Securities

20

Asset Managements

25

Securities broker (IFA included)

265

Insurance companies

464

458

444

419

450

431

100,614401

73 of 100 regional banks (73%)
have adopted the app

92,217 92,927

84,67077,62373,164320

Number of tablet：
11.4％ Up300
257
59,647250

52,65645,064 46,004

47,635200

187

41,314150

34,820150

127

20,00023,014

13,090086
12011/3

266
5

441
11

2012/3

1,279
15

5,771

8,105
29

10,007
37

49

49

57

64

70

100

77

50
44

21

2013/3350

66,450464

November, 2010
started400

90,306 91,594

145 regional financial institutions

1

Total companies

40,000companies)
500

02014/3

2015/3

2016/32017/3

2018/3

2018/122019/6

2019/122020/62020/128

The SaaS (Software as a Service) business provides asset management-related data for tablet devices

Installation of a lifetime planning simulation tool developed by ourcapital alliance partner ‘MILIZE’ on the ‘Wealth Advisors’
The app now offers a comprehensive lifetime planning simulation tool, enabling users toconsolidate and manage their entire financial assets and liabilities including savings,
investment funds, pension plans, properties and loans.
Perform individual life plan simulation

Constantly update the tuition feesof each university and wage data ofcompanies, and perform detailed
analysis.

Set goals and objectives and make
optimal proposals to individuals
with a goal-based approach

9The SaaS (Software as a Service) business provides asset management-related data for tablet devices‘Wealth Advisors’ tablet is set to be equipped with an online
consultation function, facilitating effective communication
with clients in remote locations.
Morningstar and clients can view the same screen images and information, helping us makeconsistent proposals or recommendations as in in-person meetings

RemoteOnline‘Wealth Advisors’
Individual investor

Asset Management Advisor
Sharethe same
ScreenimagesShare
the same
Screenimages10

The SaaS (Software as a Service) business provides asset management-related data for tablet devices

The role of ‘Wealth Advisors’ is shifting from its Phase 1,‘customer advisory function’ to ‘Phase 2’,‘liaising with clients to deliver information’.
Phase3Phase2
Collaboration with customer
information

Linkage with trading system
Agreement■Offering: 2 company■In development：1 company■Consideration of introduction：6 company
Collaborationwithcustomer
information

Phase1
Proposal of optimal fund
Proposal●Comparison ・Synthesis chart●Portfolio analysis●Risk-return analysis

11

The SaaS (Software as a Service) business provides asset management-related data for tablet devices

Demand for investment fund data and asset management tools designated tosmartphones and PCs is increasing, thanks to progress in DX (digital transformation).
Number of companies providing data forsmartphones and PCs and operation-related tools

Simulation of funded
investment trust

Investment trust
data for PC

Insurance
filtering tool

Robo Advisor

Money color-coded
diagnostics

Financialcalculator

Inheritancesimulation（Number ofcompany）

70
60

62

57

Life Plan Simulation

50
40

8.8% Up

30
Freshly-picked NISA
tax saving simulation

20

iDeCo tax saving
simulation

100
2019年12月
December, 20192020年12月
December, 2020
12

The SaaS (Software as a Service) business provides asset management-related data for smart phones, PC

The number of downloads of all smartphone apps increased by double
digits compared to the end of the same period of the previous year.
＜Changes in the number of smartphone app downloads＞(Number of DL）
860,272
850,000

株式新聞
Stock News Paper
My仮想通貨Virtual Currency
My
My投資信託Investment Trust Information
My

800,000

13.4% Up

41,4232.0 times Up

33,719758,583
Stock News Paper
750,000

20,903

28.6% Up

26,224My Virtual Currency
700,000

785,130

10.4% Up
711,456

650,000

My Investment
Trust Information
2019年12月末

End of December, 20192020年12月末
End of December,
2020

13

Media solutions for improving brand value

Morningstar’s Official YouTube Channel has tallied
more than ‘20,000 subscribers’ and ‘1 million cumulative views’
Number of subscribers to the official YouTube channel
23,592（Number of people）
25,00020,00015,00010,000It launched its full-swing news
delivery service on April 30, 2020,
when the Japanese government’s‘state of emergency’ was in place.

5,000

About 11.7 times

2,000

0
2020/4/30
April
30, 2020

Two videos have exceeded 100,000 views.
＜117,331 views＞＜243,063 views ＞（as of January 27）（as of January 27）‘For those who start‘tax-free savings-type NISA’How to buy investment funds,
avoiding “buy high, sell low”?

1,280 Likes

1,231 Likes

2021/1/27
January27, 2021■Other most-viewed videos (number of views as of January 27):
・Again, how effective is ‘long-term, accumulation and diversified investment’? 70,664 views
・‘Our message to investors as we enter into the post-COVID crisis era’
65,676 views
・For those who plan to start ‘iDeCo’ now

63,766 views

Stop saving and start to invest! Our recommended steps to investment- ‘iDeCo’,‘periodic NISA’ and a full ‘investment account’.

59,834 views

・Self-determining fund selection
and asset allocation in ‘new normal times

49,357 views

・What you most need to know to select investment funds

41,066 views

・14

Media solutions for improving brand value‘Morningstar Conference 2021’, held during the government’s state of emergency,
it welcomed more than 6,300 visitors in one day, many of them online.
The number of first-time participants was 4,134, 65% of the total.
Morningstar Conference 2021
【Held on opened on January 16, 2021 (Sat.) 】
The keynote speech video,
released the following day ofthe conference,
recorded 10,000+ views on thefirst day alone!
18,115 views
275 Likes as of January 27（Numberof people）
7,000<Number of participants>
January 16, 2021

6,324
6,000

HSBC Global
Asset Management

ComgestAsset Management

5,000

Number of sponsors: 3
January 18, 2020
4,000
3,000

Number ofsponsors: 7

Invesco Asset Management

Daiwa
Asset Management

Online6,252

NomuraAsset Management

Meiji Yasuda Asset Management

2,000

PictetAsset Management

Tokyo Marine Asset Management
Sumitomo Mitsui DS
Asset Management

Visitors

・ Viewers ： 6,252
・ Visitors ： 72
・ Total： 6,324

1,000

0

741

Visitors

72
2020年1月

January, 20202021年1月

Mitsubishi UFJ
Kokusai AssetManagement

January, 2021

Excerpt from comments on SNS“As usual, I enjoyed your neatly-phrased speech.

Your presentation was very impressive. I was thoroughly satisfied with the clearly presented information.”“As happens each year, I was thrilled with the presentation. The presenter emphasized the partial incorporation of hedged foreign bonds and emerging
equities from a long-term investment perspective. ““I will try to find a ‘convincing way’ to manage my assets by drawing upon the insights obtained from the presentation.”

15

Media solutions for improving brand value

Due to the corona pandemic, a string of major seminars was cancelled.
They are slated to be held on our ‘YouTube Chanel’ platform.
January 26-28, 2021

March 6, 2021

March 26-27, 2021

Kansai Mirai Bank
3Days New Year Conference＜Kansai Mirai Bank＞

Rosina Group
Joint Online Conference＜Resona Group＞

Investment Trust Fair 2021
in Fukuoka＜Fukuoka Financial Group＞

Online seminar
Approximately 1,000 people

Online seminar
Approximately 3,000 people

Online + Face-to-face seminar
Approximately 3,000 people

16Media solutions for improving brand value

Revenue from seminars for 2Q and 3Q recovered
significantly, after a sharp decline in 1Q（単位：千円）
120,000＜1Q＞<1Q for the fiscal year ending March 2020
vs.
1Q for the fiscal year ending March 2021>

100,697

＜2Q＞

＜3Q＞

<2Q for the fiscal year ending March 2020
vs.
2Q for the fiscal year ending March 2021><3Q for the fiscal year ending March 2020
vs.
3Q for the fiscal year ending March 2021>

99,446

100,000▲15.5％
84,055▲47.6％
80,0004.8％
60,00052,81952,73655,33240,00020,0000

April ~ June
2019

April ~ June
2020

July ~
September
2019

July ~
September
2020

October ~December
2019

October ~December
2020

17

Gomez Consulting reported robust growth of website
consultation and website management support transactions.
＜Number of orders for web consulting and site management support ＞
30

28

27
25

25

22
20

15

10
April ~ December
2019年4月-12月
20195April ~ December
2020年4月-12月
2020

0
Web consulting

Site management support
18

Part 3
Overview of Asset Management business

19

Asset Under Management of the Group which includes investment
Combined AUM fromadvisory has substantially increased
regional financial
institutions exceeds
1.7 trillion yen【AUM】
Balance as of January 25, 2021: 2,689.2 billion yen
66.9% Up(¥ 100million)
25,000February 2019
Acquired Carret Asset Management

17,301

15,50313,084 13,039 13,171 13,274

384

441

455

508

13,450549

14,083790

23,3485,170

17,92015,00023,39322,968
SBI Regional Revitalization Asset Management
SBI Bond Investment Management
7,301
21,667
Carret Asset Management
20,395Morningstar Asset Management
5,960 6,277
19,824
5,817
SBI Asset Management
19,189December 2019
Acquired SBI Regional Revitalization
Asset Management
SBI Bond Investment Management

20,00025,873

14,571 14,886

1,008 1,109

1,308

16,063 16,142

1,685 1,868 3,654

4,277

4,336

4,561

3,764

10,2396,974 7,175 7,304

7,464

7,810

8,226 8,585

8,902

9,412 9,760

9,996

10,0006,470 6,590 6,868
6,049 6,054 6,102 6,063 6,264

5,000

3,206
3,190 3,126 2,157
3,108
3,250 3,233 3,192
3,166 3,192 3,055
3,083 3,078 3,097 3,161 3,102 3,161 3,189 3,229
3,008 3,008
1,406 1,441
1,329
1,335
1,346
1,282 1,299
1,109 1,097 1,130 1,148 1,145 1,173 1,210 1,007 1,259 1,270 1,266 1,174 1,213 1,247

7,235

3,214 3,218 3,512 3,686
2,459 2,369 2,387 2,394 2,390 2,489 2,574 2,673 2,712 2,700 2,512 2,230 2,471 2,689 2,788 2,895 3,1410
2019/4

2019/6

2019/8

2019/10

2019/122020/2

2020/42020/62020/8※Carret Asset Management's Asset Under Management is converted at Mizuho Bank's month-end rate, December 2020: 1 dollar = 103.89 yen

2020/102020/1220

‘SBI Vanguard S&P 500 Index Fund’, the flagship fund for SBI
Asset Management, is valued in excess of ￥100 billion＜ SBI・the Global Market・Developed countries・
Emerging countries Index Fund『nick name ：Snow Ball』 ＞＜SBI・Vanguard・S&P 500 Index Funds＞(¥ 100million)(¥ 100million)

【AUM】

1,400

Balance as of January 26, 2021: ¥ 115.2 billion

1,200

Breakthrough 100 billion
set from just 15 months

300

1,152

【AUM of fund whole series 】
Balance as of January 26, 2021: ¥ 26.6 billion

250

236

1,027

213

1,000
915

185
175
170

Trust fee（tax included）

726
661

600

200

772

800

266

153
140

0.1102%150

126
Trust fee（tax included）

524

0.0938%

112
100

426
372

400
309

59

237
200

148
52
17 35

64 66

72

81

88

96

101 99

94

50

181

82

0

0
2019/92019/122020/32020/62020/92020/122019/6

2019/92019/122020/32020/62020/92020/1221

In contrast to the public offered active funds managed by SBI Asset Management thathave suffered sluggish growth in assets under management,
assets managed by index funds have increased substantially.
(¥ 100million)

Changes in AUM of active funds and index funds of SBI Asset Management

4,000

3,689 ＜100%＞

インデックスファンド

3,511

Index funds

3,500

アクティブファンド

3,143

Active funds
3,000

2,500

2,459

2,369 2,387 2,394 2,390

2,489

Composition
ratio

2,574

2,673 2,712 2,700▲10%down2,690
2,512

2,788

3,215 3,218

2,895

1,708
1,656

2,471
2,230

1,624

＜46%＞

1,638 1,589

1,549

2,000

1,500

1,541

1,898 1,833 1,820 1,806 1,810 1,849

1,883

1,819
1,598
1,925 1,904

1,560

1,443
1,344

1,000

1,855
1,346
3.5 times up
1,149 1,228

500

561

536

567

588

580

640

691

748

808

881

914

886

June,
2019

August,2019

October,
2019

December,
2019

February,
2020

1,629
1,519 1,577

＜54%＞

1,028

0
April,
2019

1,981

April,
2020

June,
2020

August,2020

October,
2020

December,
2020

22

Cash flows into Morningstar group’s private placed investment funds
increased by over ￥900 billion in 2020
; the third largest inflow amongst 89 fund managers in Japan
Cumulative net cash inflows in 2020 ranked third,
staving off foreign capital and Japanese major fund managers(¥ 100million)【Monthly capital inflows into SBI-managed
private placed investment funds and ranking】

2,500

Y-to-Y total for2020

1st out of
90 companies

Rank
3rd out of
89 companies

4th out of
90 companies

4th out of
89 companies
1,500

7th out of
89 companies

8th out of
89 companies

2,078

80
9th out of
89 companies

500

13th out of
89 companies

9th out of
89 companies

907

729

1,158

1,022

609

526

530

329

317

303

85

5th out of
89 companies

7th out of
90 companies

Mar,
2020

Apr,
2020

May,
2020

June,
2020

July,
2020

Aug,
2020

Sept,
2020

Oct,
2020

Nov,
2020

9

15
70

Feb,
2020

1
2
3
4
5
6
7
8

10
11
12
75
13
14

511

0
Jan,
2020

Asset Management Company

2nd out of90
89 companies

2,000

1,000

【Cumulative net inflows into private
placement investment】

95

Dec,
2020

16
17
18
19
20

JPMorgan Chase & Co.
PIMCO
SBI Asset Management Group
Blackrock Asset Management
InvescoMitsubishi UFJ Kokusai Asset
SOMPO Asset Management
Nissei Asset Management
Sumitomo Mitsui Trust AssetManagement
BlueBay
Daiwa Asset Management
Sinsei Asset Management
Axa Invest Managers
Meiji Yasuda Asset Management
Goldman Sachs AssetManagement
Prudential Financial
Simplex Asset Management
Neuberger Berman
Barclays
Sinsei Asset Management

Net inflows offunds (billion yen)
11,748
9,097
9,055
8,903
6,471
6,445
6,047
4,938
3,855
3,345
2,175
1,631
1,520
1,481
1,310
1,215
1,138
1,064
725
706

※Statistical data of the Investment Trusts Association of Japan Created from the asset increase / decrease status of private placement investment trust management companies※SBI's private placement investment trust balance is the total of SBI Asset Management, SBI Bond Investment Management, and SBI Regional Revitalization Asset Management.

23

A total of 90 regional financial institutions now entrust their fundswith the Morningstar group.
Of which, 52 out of 100 regional banks entrust Morningstar to manage their funds.

90
21

90
80

Regional banks
地方銀行
Shinkin banks
信金・信組

70

・その他
JA
JA,
Others

17

60
50
40

52

30
20
10
0
December,
2016

July,
2017

December,
2017

July,
2018

December,
2018

July,
2019

December,
2019

July,
2020

December,
2020

24

Breakdown of asset classes held by regional financial institutions

Morningstar group deploys its global network
advantage to offer fund management products.
＜Breakdown of asset classes held by investment products＞

 Focus on provision of products with highquality and highly liquid overseas fixed income
 Support to mitigate risk associated with risinginterest rates through interest rate swaps
 All products are offered at low cost andcustomized to the clients' requirements

Multi-asset, REIT, etc.
15.0%
Australian bonds(State bond, RMBS)
5.0%
European bonds(Denmark, Sweden, etc.)
10.0%

US Bonds(Treasury bonds,
municipal bonds (variable))
60.0%

Canadian bonds(Canadian Province Bonds)
10.0%

25

Offer supporting tools for regional financial institutions toenhance their portfolio management and risk management
SBI Bond Investment Management
SBI Regional Revitalization Asset Management

MILIZE’s ‘Acrux’ - the tool for portfolio analysis and risk management applicable to securities investment
In a cloud environment, Morningstar provides regional financial institutions
with next-generation platforms geared to securities investment and risk management.
① Visualizing data to gain better comprehension of portfolio profiles.
② Extensive stress testing and scenario-based testing of existing portfolios③ Running periodic income simulations for different portfolio restructuring projects

26

Support for education and development of human resources
capable of securities portfolio management＜Features of the training provided by our Group ＞
・Offering opportunities to experience entire asset management operations, ranging fromfront to middle and back office tasks
・Acquisition of diverse knowledge of products

Our training encourages accurate understanding of overall securities investment operations andenhances not only management capability but also a risk management function.

Contents of practical experience during the training period

Asset management firm
<Overall business>＜Front desk operations＞＜ Middle back business ＞

Portfolio analysis
Rating monitoring
Performance factor analysis

Brand analysis / ordering

Market price fluctuation confirmation

Cash flow management

Base price calculation

Currency hedging

Monthly report creation

Create market comments

Risk asset table＜Others＞
Creating a model portfolio
Monetary Policy Report ofInvestment Target Country Urgent
report at the time of sudden market
changeAnalysis of new investment targets

Disclosure of holdings
IRRBB analysis data
Operation report27Part 4
Proactive development of two pillars ofbusiness, with the goal of enhancing
enterprise value
1） The SaaS (Software as a Service) businessprovides asset management-related data
2） Asset Management Business28

1） The SaaS (Software as a Service) businessprovides asset management-related data
① For financial institutions （B to B）② For employee members ofcorporate-type defined pension plans （B to E）
Employee③ Stock newspaper WEB version （B to C）

29

The SaaS (Software as a Service) business provides asset management-related data for tablet devices

Aiming to achieve stable revenue growth by further increasing thenumber of companies and tablets using our ‘Wealth Advisors’“We set our sights on the utilization of our app by 700 companies and 150,000 devices, together
with our provision of ‘Phase 2 & 3’ services to 50 companies within three years. (Number ofcompanies)(Number of tablet)

160,000

150,000

台数
Number of tablet
社数
Number of companies

140,000800

700 700

120,000

600
100,614100,000

90,306

500

464

419

80,000400

66,45060,000300
45,622
37,46140,00020,0009,373

049,305

391

6
Dec,
2011

1,32120
Dec,
2012

31
Dec,
2013

13,937
46
Dec,
2014

50
Dec,
2015

200

187

67

Dec,
2016

100

88

Dec,
2017

Dec,
2018

Dec,
2019

Dec,
2020

March, 2024
（Target）

030

The SaaS (Software as a Service) business provides asset management-related data for smart phones, PC

On the back of progress in DX, we are in line to offer high value-added
data to support the promotion of non-face-to-face sales on which faceto-face marketing-oriented financial institutions is focusing.
“Aiming to provide data to 100 companies in 3 years”（単位：社数）

100

100
90
80
70
60

57

62

50
40
30
20
10
0

December, 2019

December, 2020

March, 2024
（Target）

31

The percentage of principal protection products held by defined
contribution-type corporate pension plans (DCs) remains high70.00%

65.00%

Comparison of the percentage of principal protection products
held by defined contribution-type corporate pension plans and iDeCo
64.74%

Defined contribution-type
企業型Ｄ

64.54%

corporate pension plans (DCs)

62.56%
60.12%

Ｃ
iDeCo
iDeCo

60.00%

55.93%
53.97%

55.00%

53.64%

54.36%

53.60%
51.51%

50.00%

50.62%

51.64%

45.00%

40.00%
年March,2015of
3月末
End
2015

年3March,月末2016
End of

月末
2017
End 年
of3March,

2018
End年
of3月末
March,

月末
2019
End 年
of 3March,

月末
2020
End年
of3March,

2016

2017

2018

2019

2020

32

The SaaS (Software as a Service) business provides asset management-related data
for Defined Contribution Plan

We plan to provide employee members of defined contribution-type
corporate pension plans with an investment education and advice
service (charged) via smartphone app. (Scheduled to start in May, 2021)
Defined contribution-type corporate
pension plans (401k)

Providinginvestment advice tools

company
Labormanagementagreement

Offer Investment products
Evaluation information / contents① Presentationof investment
products

Investment Advice Service
for 401k

Service provided

Employee(Subscriber)
7.52 million
people② Provision of
investment
education

Operation management
organization

Owner
37,213

contracts for Investment advisory※ The number of business owners and employees (numberof subscribers) is as of the end of November,2020.

App development

Service releases

Expandedfunctionality

May, 2021 ~Intuitive and easy-tounderstand design even forinvestment beginners

 The app is to be released to subscribing companies
 Following its release, we plan to enhance its
functions as necessary, based on user feedback

33

The SaaS (Software as a Service) business provides asset management-related data
for Stock newspaper web‘Stock newspaper’ has been suspended
and completely switched to the digital version

December

2021
January

February

December 24. 2020

January- March

Release of full transition
to digital version ofstock newspaper

Campaign to switch toexisting corporations /individual customers＋
Renewal of‘Stock Newspaper Web’

March

April

April 1,
Complete transition todigital version of stock newspaper＜PTS＞✔Enhancement of PTS price information and rating
information of each company- Distribution of enriched information during stock markets’ off-hours(eg. early morning and lunch break)- Rating information, divergence from real-time value rankings and other✔AI (artificial intelligence) stock price forecast- AI stock price forecast by MILIZE✔Enrichment of foreign stock information- Make full use of US Morningstar data

＜Using milize‘s AI stock price forecast＞

Stock newspaper
Distribution ofenriched information
during stock markets’
off-hours

レーティング乖離率ランキング

Among machine learning
programs, MILIZE employs oneof the most efficient ‘Xgboost’
AI. The AI analyzes 50 factors toforecast short-term (1~10 days)
share price fluctuation rates.

342）Asset Management business①Provision of Products (private placed investment funds)
for institutional investors, mainly regional financial
institutions② Provision of Products (public placed investment funds)
for private investors③ Provision of Robot Advisor tools to private investors

35

Asset Management business- Provision of Products (private placed investment funds) for institutional investors, mainly regional financial institutions

Regional financial institution should not regard securities investment as
mere surplus funds management; it is a critically important operation
for their business management.
In the face of declining revenues from underlying operations (profits from customer service
business), more banks are increasingly relying on securities investment gains.
Dependence on profits of regionalbanks for securities management

Holding status of securities of regional banks(As of the end of March 2019)（Trillion yen）

Government bonds
and local bonds
33 trillion yen

Investment
trusts, etc.
28%

Government
bonds
24%

80兆円
Gross profit (excluding securities, interest, dividends
and bonds)
Securities investment income
Right axis
※ Securities investment income= securities interest dividend + bond 5 account tail + stock 3 account tail(Source) Financial Services Agency

Stock
9%

Corpor
ate
bonds
21%

Local
bonds
18%

Redemption
over 1 year
and within 3 years

26%
18%

15 trillion yen
A little less than
20% of the entire portfolio

Redemption within 1 year

36

Asset Management business- Provision of Products (private placed investment funds) for institutional investors, mainly regional financial institutions

Providing products and portfolio management for institutional
investors, mainly regional financial institutions
In three years, the outstanding amount of assets managed by private placed investment funds
for regional financials, amongst other institutional investors, is targeted to top the ￥5.0tr mark.
50,000(¥ 100million)
50000
45000

SBI Bond Investment Management
SBIボンド・インベストメント・マネジメント

40000

SBI地方創生アセットマネジメント
SBI Regional Revitalization Asset Management

35000
30000

＜Product composition currently
provided by Morningstar Group＞
Multi-asset, REIT, etc.
Australian bonds
15.0%(State bond, RMBS)
5.0%
European bonds(Denmark, Sweden, etc.)
10.0%

25000

US bonds(government bonds,
municipal bonds (variable))
60.0%

Canadian bonds(Canadian Province
Bonds)
10.0%

20000

17,540

15000
10000
5000

384

441

455

508

549

790

1,008 1,109 1,308

1,685 1,868

3,654 3,764

6,049 6,054 6,102 6,063 6,264 6,470 6,590 6,868 6,974 7,175 7,304 7,235 7,464

4,277 4,336

4,561 5,170

7,810 8,226 8,585 8,902

5,817 5,960

6,277 7,301

9,412 9,760 9,996 10,239

0
2019/4

2019/6

2019/8

2019/10

2019/122020/2

2020/42020/62020/82020/102020/12

March,
2024（Target）

37

Asset Management business- Provision of Products (public placed investment funds) for private investors

Financial assets of Japanese households with more than
1,000 trillion yen in cash and deposits
1,901 trillion yen (end of September 2020)（Trillion yen, Composition ratio%）

Others58
3.1%

Insurance / Pension /Fixed amount guarantee
530
27.9%
Stocks,
etc.
181
9.5%
Investment
trust
Debt
72
securities
3.8%
26

Deposits andSavings
1,034
54.4%

From savings toasset formation

1.4%
Source: Bank of Japan38

Investors making long-term funded investments are
expanding rapidly(Unit : 10,000 accounts)
300＜ Trends in the Number of Accounts
for ‘tax-free savings-type NISA’＞
275
244

250

＜Changes in the number of ‘iDeCo’ subscribers ＞(Unit: 10,000 people)
180

172

176

178

156

160

220
140

189

200

121
120

171
147

150

100

85

127
80

104
100

88

60

69
40
50
20
0

End ofJune,
2018

End ofMarch,
2019

End ofDecember,
2019

End of
September,
2020

0

End ofMarch,
2018

End ofMarch,
2019

End ofMarch,
2020

End of
September,2020

End ofOctober,2020

End ofNovember,
2020

Source: Number of ‘tax-free savings-type NISA’ accounts: Financial Services Agency, Number of "iDeCo" members: National Pension Fund Association "iDeCo Official Website"

39

The ratio of index funds to the total domestic investment trust market issteadily increasing, and the ratio of active funds is declining.
<Ratio of index fund net assets to total
20.0%
domestic investment trusts>

18.7%

94.0%

<Ratio of net assets of active funds inthe total domestic investment trusts>

91.5%
92.0%

18.0%
90.0%

16.0%

88.0%

86.0%

14.0%

84.0%

12.0%

81.3%

82.0%

80.0%

10.0%

8.5%

78.0%

8.0%
76.0%

74.0%

6.0%
December,
2010

December,2012

December,
2014

December,
2016

December,
2018

December,
2020

December,
2010

December,2012

December,
2014

December,
2016※ Domestic fund = domestic publicly offered additional stock investment trust (excluding ETF), index = investment trust association standard※ December 2010-December 2020 (monthly)

December,
2018

December,
2020

40

Asset Management business- Provision of Products (public placed investment funds) for private investors

Providing low-cost index funds to support the asset
formation of individual investors
In three years, Index fund balance is targeted to top the ￥1tr mark.
Capital inflows/outflows of index funds and active funds
management by SBI Asset Management

Composition ratio of SBI Asset Managementby sales channel（April-December,2020）（million yen ）90,00080,000Dec, 70,000
2019 60,000
50,00040,00030,00020,00010,0000(10,000)(20,000)（April-December,2020）（million yen ）Index fund
80,914Face-to- Private placement
face sales investment fund12,875
10,084
4%
3%
Online sales
280,208
93%
Active fund
(5,817)(¥ 100million)

10,00010,0009,000
8,000＜Balance of index funds managed by SBI Asset Management ＞

7,000
6,000
5,000
4,000
3,000
2,000
1,000
0

561

April,
2019

536

567

588

July,
2019

580

640

691

October,
2019

748

808

881

January,
2020

914

886

1,028

April,
2020

1,149

1,228

1,346

July,
2020

1,519

1,577

1,629

1,855 1,981

October,
2020

March, 2024
（Target）

41

Asset Management business- Provision of Robot Advisor tools to private investors

Providing Robot advisors for‘asset formation layer’ and ‘asset utilization layer’＜Differentiation from other companies ＞
Morningstar

OthersInvestment target

ETF or fund selected by
Morningstar

Overseas ETFs or index funds

Reserve amount

Daily, weekly, monthly

1 to 5 times a month

Regular sale

Fixed amount / fixed rate

×

Asset Building
Users

Asset Utilizing
Users

Periodic
Savings
Service

Periodic
SellingService

Referenced data from Morningstar & Sustainability
in the United States

Low cost ETF

Low cost bond fund

Bonds

Retirement

In addition to the regular reserve function,
we have also implemented a regular sale functionthat is highly needed by asset utilization groups.

42Asset Management business- Joint ventures and acquisitions for further expansion

We are set to press on with capital alliancewith fund management companies at home and abroad,to further increase the amount of assets entrusted to us.
100％

SBI Asset Management Group Co., Ltd.
(Interim holding company)
67％

100％

90％

53％

100％

Carret AssetManagement LLC

SBI Asset Management
Group Co., Ltd.

SBI Bond Investment
Management Co., Ltd.

SBI Regional
Revitalization AssetManagement Co., Ltd.

Morningstar AssetManagement Co., Ltd.

privately issued
bond-type funds
In USApublicly offeredadditional stock
investment trusts

privately issued
bond-type funds

privately issued
bond-type funds for
Regional Financial

For Fund of Fundns,
Fund Wrap
Investment Advice

USA

100％

SBI Alternative
Investments Co., Ltd.
Alternative assets
Investment
Management industry

Domestic management company
Capital and business alliance with asset management companies
in Europe and Asia
43

Part 5
Consideration of Morningstar’s stock priceand shareholder benefit XRP

44

Morningstar's stock price has significantly exceeded TOPIX
for the past year and 10 years＜Changes over the past one year （December 30, 2019 – December 30, 2020)＞
Morningstar Japan K.K
12.0%（December 30, 2019 =100）
120

TOPIX
4.8%
112

110

105
100
90
80

Morningstar Japan K,Kモーニングスター

70

TOPIX
TOPIX

60
2019/12/30

2020/1/30

2020/2/29

2020/3/31

2020/4/30

2020/5/31

2020/6/30

2020/7/31

2020/8/31

2020/9/30

2020/10/31

2020/11/30＜Changes over the past ten year (December 24, 2010 – December 25, 2020)＞（December 24, 2010 =100）
600

Morningstar Japan K.K（Annual rate ）TOPIX（Annual rate ）

500

17.5%

9.4%

500

400
300

246

200

Morningstar
モーニングスターJapan K,K

100
02010/12/24

2011/12/24

Source: Created by Morningstar

2012/12/24

2013/12/24

2014/12/24

2015/12/24

2016/12/24

2017/12/24

2018/12/24

TOPIX
TOPIX
2019/12/24

2020/12/24

45

Morningstar's ROE is well above the average of companies
listed on the First Section of the Tokyo Stock Exchange
ROE（Return On Equity）
Fiscal year ending March
2020 (actual results)

Fiscal year ending March
2021 (forecast)Morningstar Japan
K.K

13.5%

14.7%

TSE 1st section listedcompanies

6.4%

4.2%

＜Changes in Morningstar ROE ＞（%） 15

14

12.8

13
12
11

10.8

11.5

14.7

13.5

（Expected）

March, 2020

March, 2021
（Expected）

11.7

10
March, 2016

March, 2017

March, 2018

March, 2019

※ Morningstar’s forecast ROE for the year ending March 2021 represents the annualized value of net profit through to 3Q divided by the shareholders’ equity at
previous year end.
※ Forecast ROE of TSE 1st section listed companies for the year ending March 2021, was calculated using their expected net profits and shareholders’ equity at
the previous year end. These companies close their books in March and financials are excluded. (1,326 companies)

46

Morningstar's stock price and XRP have a low correlation coefficient,and the effect of diversified investment can be expected.
(Period: End of December, 2018 - January 22, 2021)
Correlation coefficient
between synchronizations(Indexed with the end of December, 2018 as 100)

170

150

Morningstar and XRP

Morningstar’s stock priceモーニングスターの株価

-0.06

XRP
XRPの価格

130

110

90

70

50

30

2018/12/28

2019/2/28

2019/4/30

2019/6/30

2019/8/31

2019/10/31

2019/12/31

2020/2/29

2020/4/30

2020/6/30

2020/8/31

2020/10/31

2020/12/31※ Correlation coefficient The closer the value of coefficient correlation is to +1, the stronger the linear relationship (move in the same direction), in contrast, the closer to -1,
the more inversely correlated (move in opposite direction).

47