Matsui Securities Co., Ltd.

Transcription

1 Matsui Securities Co., Ltd. (First Section of TSE: 8628) Annual Results for FY213 April 214

2 Table of Contents Section 1 Financial Summary 5 Section 2 Results of Operation 14 Section 3 Recent Developments 23 1

3 Results of Operation Equity trading value / Market share (JPY tn) % Q Margin Trading Service for Day-trades 1.6% 1.9% 1.2% Q % 4.6 2Q 3Q 4Q 14.% 12.% 1.% 8.% 6.% 4.% 2.%.% Margin balance / Market share Equity commission rate (bp) Q Q Q 3Q 4Q Net interest income ratio (Excluding Margin Trading Service for Day-trades ) (JPY bn) 1.3% 1.7% 3 9.2% 9.5% 8.9% 12% 1% 4.% 3.4% 3.6% 3.6% 3.7% 3.5% % 6% 3.% 2.% 1 4% 2% 1.% 4Q 1Q 2Q 3Q 4Q %.% 4Q 1Q 2Q 3Q 4Q 2

4 Financial Results Operating revenues Ordinary income (JPY mn) (JPY mn) 14, 13,152 12, 12, 1, 8, 6, 4, 8,469 9,37 9,173 8,52 1, 8, 6, 4, 5,511 9,625 6,41 6,16 5,42 2, 2, 4Q 1Q Net income 2Q 3Q 4Q 4Q 1Q 2Q 3Q 4Q Ordinary income ratio (JPY mn) 7, 6, 5, 4, 3,416 5,82 3,633 3,682 3,183 8% 6% 4% 65% 73% 67% 67% 63% 3, 2, 2% 1, 4Q 1Q 2Q 3Q 4Q % 4Q 1Q 2Q 3Q 4Q 3

5 Overview of Retail Equity Trading Market Equity trading value of individuals 1 (FLOW) Equity holdings by individuals 1 (STOCK) (JPY tn) % % 83% 84% 84% 78% 79% % % 6% 57% FY3 FY4 FY5 FY6 FY7 FY8 FY9 FY1 FY11 Equity trading value of individuals Equity trading value of 7 on-line brokers Proportion of trading value of 7 on-line brokers 1% 8% 6% 4% 2% % (JPY tn) Super active traders 2 JPY 23 tn (Estimate) 7.4% 9.6% 9.8% 11.7% 14.3% 13.6% 19.2% 18.3% 17.% 16.3% 5.5% FY3 FY4 FY5 FY6 FY7 FY8 FY9 FY1 FY11 3Q Equity holdings by individuals Equity holdings by 5 on-line brokers Proportion of equity holdings by 5 on-line brokers 88 2% 15% 1% 5% % Source : TSE, BOJ, Company data, Company Website Note 1 : 5 on-line brokers are Matsui, SBI, Rakuten, Monex and Kabu.com Note 1: 7 on-line brokers include the 5 brokers and GMO Click and Okasan Online Note 2 : Super active traders : number of trades per month is over 1 times 4

6 Financial Summary Section 1

7 Summary of Financial Results () (Apr.13-Mar.14) (Apr.12-Mar.13) YoY (JPY mn) Operating Revenues 39,883 2, Commissions 27,349 14, Interest & dividend income 12,519 6, Interest expenses 1, Net operating revenues 38,738 19, SG&A Operating income Ordinary income Net income Ordinary income ratio Matsui's trading value (JPY tn) Daily average trading value on TSE (JPY tn) 11,648 9, ,9 1, ,175 1, ,3 6, % 49% Source : TSE 6

8 Breakdown of Net Operating Revenues () (Apr.13-Mar.14) (Apr.12-Mar.13) YoY (JPY mn) Commissions 27,349 14, Brokerage 26,18 13,72 2. Equity 23,867 11, Futures & Options 1,516 1, Others 1,164 1, Net gain (loss) on trading Interest & dividend income (1) 12,519 6, Total operating revenues 39,883 2, Interest expenses (2) 1, Net operating revenues 38,738 19, Net interest income (1) - (2) 11,373 5,77 2. Average margin balance (JPY bn)

9 Breakdown of SG&A () (Apr.13-Mar.14) (Apr.12-Mar.13) YoY (JPY mn) Transaction related expenses 4,957 3,356 48% Advertisement Employees' compensation & benefits % 2,75 1,832 13% Occupancy & rental % Data processing & office supplies 1,745 1,625 7% Depreciation 1,635 1,788-9% Duties & taxes other than income taxes Provision of allowance for doubtful accounts % Others % Total SG&A 11,648 9,719 2% 8

10 Summary of Financial Results (Quarterly) QoQ 4Q 3Q 2Q 1Q 4Q YoY (JPY mn) TOTAL Operating Revenues 8,52 9,173-7% 9,37 13,152 8,469 1% 39,883 Commissions 5,395 5,977-1% 6,52 9,925 6,389-16% 27,349 Interest & dividend income Interest expenses 3,123 3,192-2% 2,983 3,22 2,15 48% 12, % % 1,145 Net operating revenues 8,239 8,9-7% 8,799 12,8 8,241 -% 38,738 SG&A Operating income Ordinary income Net income Ordinary income ratio Matsui's trading value (JPY tn) Daily average trading value on TSE (JPY tn) 2,838 2,825 % 2,771 3,213 2,742 4% 11,648 5,4 6,75-11% 6,28 9,587 5,499-2% 27,9 5,42 6,16-12% 6,41 9,625 5,511-2% 27,175 3,183 3,682-14% 3,633 5,82 3,416-7% 16,3 63% 67% - 67% 73% 65% - 68% % % % % 2.9 Source : TSE 9

11 Breakdown of Net Operating Revenues (Quarterly) 4Q QoQ 3Q 2Q 1Q 4Q YoY (JPY mn) TOTAL Commissions 5,395 5,977-1% 6,52 9,925 6,389-16% 27,349 Brokerage 5,69 5,728-12% 5,749 9,634 6,26-16% 26,18 Equity 4,547 5,238-13% 5,276 8,87 5,479-17% 23,867 Futures & Options % % 1,516 Others % % 1,164 Net gain (loss) on trading % Interest & dividend income (1) 3,123 3,192-2% 2,983 3,22 2,15 48% 12,519 Total operating revenues 8,52 9,173-7% 9,37 13,152 8,469 1% 39,883 Interest expenses (2) % % 1,145 Net operating revenues 8,239 8,9-7% 8,799 12,8 8,241 -% 38,738 Net interest income (1) - (2) 2,841 2,919-3% 2,745 2,868 1,877 51% 11,373 Average margin balance (JPY bn) % % 315 1

12 Breakdown of SG&A (Quarterly) (JPY mn) QoQ YoY 4Q 3Q 2Q 1Q 4Q TOTAL Transaction related expenses 1,24 1,158 7% 1,154 1,46 1,113 11% 4,957 Advertisement % % 594 Employees' compensation & benefits % % 2,75 Occupancy & rental % % 95 Data processing & office supplies % % 1,745 Depreciation % % 1,635 Duties & taxes other than income taxes Provision of allowance for doubtful accounts % % Others % % 173 Total SG&A 2,838 2,825 % 2,771 3,213 2,742 4% 11,648 11

13 Capital Adequacy Ratio Capital adequacy ratio (As of 31 March 214) Margin trading balance and capital adequacy ratio (JPY bn) (JPY mn) Tier 1 (A) 76,969 Tier 2 Net unrealized gain on investment 3, ,4% 1,2% Statutory reserves 1,922 Allowance for doubtful accounts 14 1,% Sub total (B) 5,196 Assets to be deducted from equity capital (C) 4, % 817% 791% 774% 771% 8% Net Capital (A) + (B) - (C) (D) 77,283 6% Total risk Market risk 813 Counterparty risk 6, % Basic risk 2,69 Total (E) 1,22 2% Capital adequacy ratio (D)/(E) 771.% 4Q 1Q 2Q 3Q 4Q % Margin trading balance Capital adequacy ratio 12

14 Shareholders Return In accordance with the booming market conditions, we paid interim dividend of 3 yen per share for. We plan to pay year-end dividend of 2 yen per share for. Dividend policy Matsui s dividend per share and payout ratio Maintain the performance based return to the shareholders Target of payout ratio is 3% and above (Yen) % 9% 8% 79% 1% 8% Dividends for 4 3 5% 3 6% Interim : Pay 3 yen per share Year-end : Plan to pay 2 yen per share % 2% FY9 FY1 FY11 (Plan) Year-end dividend Payout ratio Interim dividend % 13

15 Results of Operation Section 2

16 Equity Trading Value Matsui s equity trading value and its market share 1 Retail equity trading value 1 and proportion to total equity trading value (JPY tn) % 14% 12% (JPY tn) % 28% 27% % 3% 1 8 8% 11% 11% 1% 9% 7% 7% 7% 8% 8% 7% 7% % 8% % 17%17% 18%19% 16% 17% 19% % % 6 6% % 2% % % 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q FY1 FY11 FY1 FY11 % Matsui's trading value Matsui's share Retail equity trading value Proportion to total equity trading value Source : TSE Note 1 : Sum of the equity trading value on 2 major stock exchanges 15

17 Margin Trading Value Matsui s margin trading value and its market share 1 Retail margin trading value 1 and proportion to total retail equity trading value (JPY tn) (JPY tn) 12 2% 1 66% 7% % 9% 8% 8% 8% 8% 8% 7% 7% % 13% 13% 13% % 1% 5% % 61% 61% 61% 63% 58% 59%6% 58% 58% 58% 56% % 5% 4% 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q FY1 FY11 % 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q FY1 FY11 3% Matsui's margin trading value Matsui's share Retail margin trading value Proportion to retail equity trading value Source : TSE Note 1 : Sum of the equity trading value on 2 major stock exchanges 16

18 Margin Trading Balance Matsui s shares bought on margin 1 and its market share 2 Total shares bought on margin 1 and proportion of general margin trading (JPY bn) 3 9% 1% 9% 9% 1% 1% 1%11% 9% 9% 9% 9% 9% 12% 1% (JPY tn) 4 23% 24% 22% 2% 21% 2% 19% 3 18% 2% 18% 18% 18% 18% 25% 2% 2 8% 6% % 1 4% % 2% 1 5% % 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q FY1 FY11 FY1 FY11 Shares bought on margin Unlimited Matsui's share Total shares bought on margin trading Proportion of general margin trading % Source : TSE Notes 1 : Balance as of the end of each quarter Notes 2 : Total market share in 2 major stock exchanges 17

19 Unrealized Losses on Matsui s Margin Balance 4% 3% 2% 1% % -1% -2% -3% -4% -5% As of 18 April 214 Average -12.% Normal margin balance -9.6% Unlimited margin balance -18.6% Margin balance of shares listed on the emerging markets -19.% (JPY tn) %. Dec-5 Sep-6 Jun-7 Mar-8 Dec-8 Sep-9 Jun-1 Mar-11 Dec-11 Sep-12 Jun-13 Mar-14 Matsui's shares bought on margin (right axis) Normal (left axis) Shares listed on the emerging markets (left axis) Average (left axis) Unlimited (left axis) 18

20 ,28 1,255 1,166 1,142 1,317 1,228 1,192 1,411 1,716 1,84 1,934 2,64 1,917 Assets under Customers Accounts / Trading Turnover Assets under Matsui s customers accounts Equity trading turnover 1 of Matsui s customers (JPY bn) 2,5 (JPY yen) 2, (X) , 16, ,5 12, , 5 8, 4, Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q FY1 FY11 FY1 FY11 Assets under Matsui's customers' accounts Net inflow in cash and stocks Nikkei 225 Note 1 : Equity trading turnover = (monthly average trading value) / (quarterly average assets under customers accounts*) * assets under customers accounts of Matsui s related persons are excluded Note 2 : Nikkei 225 is the closed price at the end of each quarter 19

21 Number of Accounts / Breakdown of Trading Value Number of accounts at Matsui 1 Breakdown of trading value by customers opening the accounts in each fiscal year 98, 94, # of accounts 942,5 # of margin accounts 147,788 (as of 31 Mar. 214) Mar % 8% 1% 9, 6% 8% 86, 6% 4% 82, 4% 78, 74, 2% 2% 7, Apr-12 Jul-12 Oct-12 Jan-13 Apr-13 Jul-13 Oct-13 Jan-14 % % FY6 FY7 FY8 FY9 FY1 FY11 # of accounts # of new accounts Proportion of beginner Before FY99 FY FY1 FY2 FY3 FY4 FY5 FY6 FY7 FY8 FY9 FY1 FY11 Note 1 : Number of accounts as of the end of each month. Dormant accounts were closed down 5,9 in Sep.212 2

22 Futures trading value (JPY tn) Matsui s OSE Nikkei 225 Futures trading value and its market share 16% 15% 15% 15% Jul. 211 Extension of trading hours Nov. 211 Lower commissions for Nikkei 225 Futures trading 19% 18% 2% 21% 2% 2% 2% 2% 2% Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q FY1 FY11 Futures trading value "Nikkei 225 mini"futures trading value Matsui's share 25% 2% 15% 1% 5% % (JPY bn) Matsui s Overseas Futures trading value (CME) 18 Feb. 213 Add new products such as equity and commodity indices Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q FY1 FY11 Overseas Futures trading value Source : OSE (Osaka Securities Exchange) 21

23 FX Margin Trading Matsui s OTC FX trading value and commission The OSE s FX trading value in Matsui and commission (JPY tn) Apr. 211 No commission charge and spread tightening were implemented Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q FY1 FY11 NetFx trading value NetFx commission (JPY mn) (JPY bn) 1, Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q FY1 FY11 The OSE's FX trading value (JPY mn) The OSE's FX commission 22

24 Recent Developments Section 3

25 Corporate Strategy Our Purpose We will provide superior quality of trading platform for retail investors based upon "customer-centered strategy" Our Achievements Pioneer in providing full-fledged online brokerage services in Japan Pioneer in providing online margin trading in Japan "Box Rate" fee structure Pioneer in developing unlimited margin trading Pioneering approach to "NetFx" "Nikkei 225 futures and Nikkei 225 Options Pioneer in providing specific application available for smartphone Introduced Margin Trading Service for Day-trades Our Direction Develop unique and innovative services Focus on brokerage business Pursue the services which expand brokerage (flow) business rather than asset gathering related (stock) services 24

26 Sep-12 Nov-12 Jan-13 Mar-13 May-13 Jul-13 Sep-13 Nov-13 Jan-14 Mar-14 Sep-12 Oct-12 Nov-12 Dec-12 Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13 Jan-14 Feb-14 Mar-14 Margin Trading Service for Day-trades I Outline of Margin Trading Service for Day-trades Commisson Interest rate p.a. Yen Trading value per an order rate JPY3mn or above % Under JPY3mn 2% Market share 2 of margin trading 46% 44% 42% 4% 38% 39.8% 39.1% 36% Due date 1 One day Number of accounts 34,568(as of Mar. 31) Trading results (JPY bn) 14 Trading value 12 Proportion of Margin Trading Service for Day-trades % 6% 5% 4% 3% 2% 34% 18% 32% 3% 16% 28% 14% 12% 1% 8% 6% 4% 18.% 14.8% 16.6% 15.5% 13.6% 11.3% 1.5% 8.3% SBI 7.7% 4.8% 4 2% 2% 2 1% Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar % Matsui SBI Rakuten Monex Kabu.com GMO Click Note 1 : If the positions are not closed within a single day, the Company would close the positions the following day. Note 2 : Total market share of each company in 6 on-line brokers 25

27 Margin Trading Service for Day-trades II Introduced the premium short-selling service since Mar. 27, 214 Outline of the premium short-selling service Trading results (from Mar. 27 to Apr. 18, 214) Number of eligible stocks Commisions Upper limit on margin balance Advantage 25 stocks(as of Apr. 24) Charge the stock lending fee 3 unit per person in each stock Enable to do short-selling of unique stocks listed on the emerging markets which are not available for short-selling under the normal type of margin transaction at any online securities Charge additional stock lending fee which is approximately 1~2bp per each stock Trading value (JPY mn) Acctive accounts (account) (JPY mn) Trading value(left axis) Acctive accounts(right axis) 4, 3,5 3, 2,5 2, 1,5 1, 5 Total Daily average 39,543 2,326 2, List of eligible stocks for the premium short-selling FreeBit (3843) Hotto link (368) Micronics Japan (6871) CYBERDYNE (7779) Adways (2489) Future Developments Plan to implement continuous improvements of the service, such as increase number of eligible stocks for short-selling, expansion of the upper limit for the premium shortselling service, etc. 26

28 NISA I NISA 1 has started since January 214 3,5 3, 2,5 2, 1,5 1, 5 Number of NISA accounts and customers asset (as of Mar. 31, 214) Total number of accounts 59,848 Number of active accounts 2 26,632 Active account ratio 44.5% Assets(JPY mn) 13,415 Trading value through NISA accounts (JPY mn) Jan-14 Feb-14 Mar-14 4Q 7,886 3,767 3,981 15,634 Number of active accounts Active accounts(left axis) Nikkei 225(right axis) (JPY yen) 16,5 16, 15,5 15, 14,5 14, 13,5 13, 12,5 Distribution of the invested amount (as of Mar. 31, 214) (JPY td) 8 ~ 1, 6 ~ 8 4 ~ 6 2 ~ 4 under 2 11% 14% 16% 2% Rank Code Stock Mizuho Financial Group Takeda Pharmaceutical Canon Mitsubishi UFJ Financial Group Aeon Toyota Motor Mitsubishi Corporation NTT Docomo Matsui Securities Aozora Bank 39% % 1% 2% 3% 4% 5% Top 1 ranking in trading value (from Jan. to Mar. 214) Note 1 : Japanese version of Individual Savings Account Note 2 : NISA account which has at least one transaction since Jan. 6,

29 NISA II Total number of NISA accounts 59,848 accounts (as of Mar. 31, 214) Number of beginners 2,88 accounts (as of Mar. 31, 214) Age 13% 5% 2's 16% 3's 27% 2% 4's 5's 6's 19% Over 7's Sex Age 3% 14% 16% 16% 28% 21% Sex 65% 2's 3's 4's 5's 6's Over 7's 29% Male 71% Female 5% 5% Male Female 28

30 Details of Newly Offered Services Campaign/Promotion Cost-free campaign for margin trading service for day-trades (214/1/6-3/31) No commission charge and no interest rate Starting campaign for trading ETF (214/1/6-1/31) Cash-back campaign for trading ETF (214/3/3-4/3) KODEX2 ETF Samsung KODEX Samsung Group Securities Exchange Traded Investment Trust Cash-back campaign for trading ETN (214/3/12-4/3) NEXT NOTES STOXX ASEAN-Five Select Dividend 5 (NR-JPY) ETN Improvement in Quality of Services to Customers Introduce the information tool for ETF (214/1/4-) Enable to search ETF stocks easily and compare the performance with similar mutual funds, etc No commission charge for equity trading on NISA* accounts (214/1/6-) *NISA : Japanese version of Individual Savings Account Enhance the trading function for KABU touch (214/2/1-) Introduce new function such as stock chart, etc Introduce the premium short-selling service (214/3/27-) Enable to do short-selling of unique stocks which are not available under the normal type of margin transaction 29

31 The material is intended to provide the financial results for the quarter ended 31 March 214 and the company s business strategy, and does not constitute a solicitation of an offer to buy the securities issued by the company. The material is created based upon information as of April 214. The information herein identifies our views at the time of creation of the material, and the company does not make any representation or warranty as to its accuracy or completeness, therefore, the information may be changed without any notices. The company does not assume responsibility for any omissions or errors of any data and descriptions in the material. This presentation may contain forward looking information. Please keep in mind that they are based on projections of the company and subject to changes depending on the situation. We will under no circumstances assume the obligation to revise this presentation in case such situation occurs. Contact information Matsui Securities Co., Ltd. URL: Tel: Fax: Mail: ir@matsui.co.jp Akira WARITA, Managing Director : a-warita@matsui.co.jp Shinji OIDA : s-oida@matsui.co.jp