IR Presentation for First quarter, year ending March...
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IR Presentation for First quarter, year ending March 2021 Ichiyoshi Securities Co., Ltd. July, 2020 Stock Code：8624
Transcript of IR Presentation for First quarter, year ending March...
IR Presentation
for First quarter, year ending March 2021
Ichiyoshi Securities Co., Ltd.
July, 2020
Stock Code：8624
Ⅰ: Business Result (Consolidated)
FY 2019
1Q
FY 2020
1Q
Year-on-
year (%)
Year-on-
year
Operating revenue 4,618 4,182 -9.5% -436
Net operating revenue 4,220 3,792 -10.1％ -427
Operating cost
& expenses4,459 4,174 -6.4％ -285
Operating income -239 -381 － -142
Current income -218 -365 － -146
Extraordinary income
& loss-0 103 － 103
Income taxes -29 139 － 169
Net income attributable
to owners of parent-194 -401 － -207
◆ Operating revenue amounted to 4,182 million yen, a decrease of 436 million yen (down 9.5%) from the year-earlierperiod.
◆ Current income: loss of 365 million yen.
◆ Net income attributable to owners of parent: loss of 401 million yen.
1. Profit and Loss
1
FY 2019 FY 2020
1Q 2Q 3Q 4Q 1Q
4,618 4,820 4,511 4,894 4,182
4,220 4,396 4,160 4,463 3,792
4,459 4,541 4,364 4,420 4,174
-239 -145 -204 42 -381
-218 -183 -158 90 -365
-0 2 66 -48 103
-29 99 119 75 139
-194 -285 -211 -32 -401
(JPY mil.)(JPY mil.)
FY 2019
1Q
FY 2020
1Q
Year-on-
year (%)
Year-on-
year
Commissions 4,124 3,689 -10.6% -435
Gains on trading 9 28 206.8% 19
Other operating
balance33 43 32.6% 10
Interest & dividend
income53 31 -41.2% -21
Total 4,220 3,792 -10.1% -427
◆Commissions amounted to 3,689 million yen, a decrease of 435 million yen (down 10.6%) from the year-earlier period,
mainly decreased in commissions from distribution of investment trusts and other sources(mainly trailer fees on investment
trusts).
(JPY mil.) (JPY mil.)
FY 2019 FY 2020
1Q 2Q 3Q 4Q 1Q
4,124 4,293 4,074 4,352 3,689
9 16 30 33 28
33 49 19 39 43
53 36 36 37 31
4,220 4,396 4,160 4,463 3,792
2. Breakdown of Net Operating Revenue
2
◆ Brokerage commissions on stocks amounted to 1,260 million yen, a decrease of 21 million yen (down 1.6%) from the year-earlier period.
Commissions from distribution of investment trusts amounted to 654 million yen, a decrease of 267 million yen (down 29.0%) from the
year-earlier period. Commissions from other sources (mainly trailer fees on investment trusts) amounted to 1,467 million yen, a decrease of
211 million yen (down 12.6%) from the year-earlier period.
◆ Commissions from underwriting amounted to 5 million yen, an decrease of 5 million yen (down 50.0%) from the year-earlier period, as the
Company participated in the management and underwriting of 3 initial public offerings.
FY 2019 1Q FY 2020 1QYear-on-year
(%) Year-on-year
Commissions 4,124 3,689 -10.6% -435
Brokerage (Major item)
Stocks 1,281 1,260 -1.6% -21
Distribution (Major item)
Investment trusts 921 654 -29.0% -267
Underwriting (Major items)
IPO 7 4 -46.1% -3
PO 3 1 -57.3% -2
Total 11 5 -50.0% -5
Commissions from other sources (Major items)
Investment trusts(trailer fees, etc.) 1,679 1,467 -12.6% -211
Other than investment trusts 168 129 -23.4% -39
Total 1,847 1,596 -13.6% -251
＜Reference＞
Fund distribution 478 496 3.9% 18
(JPY 100 mil.)
* Including wrap-account fund sales
FY 2019 FY 2020
1Q 2Q 3Q 4Q 1Q
4,124 4,293 4,074 4,352 3,689
1,281 1,116 1,163 1,183 1,260
921 1,137 874 943 654
7 116 22 349 4
3 7 40 10 1
11 123 62 359 5
1,679 1,692 1,749 1,611 1,467
168 170 157 164 129
1,847 1,862 1,907 1,776 1,596
3. Breakdown of Commission Revenue
3
(JPY mil.)(JPY mil.)
FY 2019
1Q
FY 2020
1Q
Year-on-year (%)
Year-on-year
Stocks, etc. -5 17 － 23
Bonds・Forex, etc. 15 11 -26.3% -3
(Bonds, etc.) (7) (7) 2.4% 0
(Forex, etc.) (7) (3) -53.0% -4
Total 9 28 206.8% 19
(JPY mil.)
◆ Net gains on trading amounted to 28 million yen, a increase of 19 million yen (up 206.8%) from the year-earlier period,
chiefly as net trading income on stocks increased.
FY 2019 FY 2020
1Q 2Q 3Q 4Q 1Q
-5 0 16 26 17
15 15 14 7 11
(7) (7) (7) (5) (7)
(7) (8) (6) (2) (3)
9 16 30 33 28
(JPY mil.)
4. Breakdown of Gains or loss on Trading
4
(JPY mil.)
FY 2019
1Q
FY 2020
1Q
Year-on-
year (%)
Year-on-
year
Transaction related
expenses466 431 -7.4% -34
Personnel expenses 2,427 2,231 -8.1% -195
Property related
expenses615 586 -4.6% -28
Clerical expense 551 547 -0.8% -4
Depreciation 146 130 -10.7% -15
Public charges 62 62 -0.8% -0
Others 190 184 -3.5% -6
Total 4,459 4,174 -6.4% -285
＜Reference＞ FY 2020 1Q fixed cost and variable cost (non-consolidated basis)
Fixed cost 3,173
Variable cost 826
◆ Operating cost and expenses amounted to 4,174 million yen, a decrease of 285 million yen (down 6.4%) from the year-
earlier period, mainly as personnel expenses declined.
(JPY mil.)
(JPY mil.)
5. Operating Cost and Expenses
5
466 431
2,427 2,231
615
586
551
547
146
130
62
62
190
184
4,459
4,174
0
1,000
2,000
3,000
4,000
5,000
FY 2019 1Q FY 2020 1Q
Transaction related expenses Personnel expenses
Property related expenses Clerical expenses
Depreciation Public charges
Others
28,772 27,894
14,757 18,575
0
10,000
20,000
30,000
40,000
50,000
FY 2019 FY 2020 1Q
Net worth Liabilities
Increase in cash and deposits and cash segregated as deposits, margin transaction assets
Balance Sheets Financial Result
Sum of Liabilities and Net Worth(JPY mil.)
FY 2020 1QChange from
FY 2019 end.
Equity ratio
(%)59.9 -6.0
Net worth per share (JPY) 772.87 -24.25
Capital adequacy ratio
(non-consolidated basis)
(%)
442.3 -4.5
FY 2020 1Q Year-on-year
EPS (JPY) -11.15 -6.49
Decrease in Investments and other assets
6. Balance Sheets/Financial Result
6
Total Assets(JPY mil.)
43,53046,470
43,53046,470
Increase in cashpayable to customersand margin transaction liabilities
Decrease due to dividend payments
6,668 6,497
36,86239,972
0
10,000
20,000
30,000
40,000
50,000
FY 2019 FY 2020 1Q
Fixed assets Current assets
Ⅱ：Business Circumstances
7
1,759 1,791 1,724 1,608 1,679 1,692 1,749 1,611 1,467
1,136 1,194 928
621
921 1,137 874
943
654
2,167 1,901
1,704
1,247
1,281 1,116
1,163 1,183
1,260
325 315
486
292
242 346
286 615
306
5,389 5,202
4,843
3,769
4,124 4,293
4,074
4,352
3,689
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
1QFY 2018
2Q 3Q 4Q 1QFY 2019
2Q 3Q 4Q 1QFY 2020
Investment trusts (trailer fees, etc.) Distribution Brokerage Underwriting and others
(JPY mil.)
1. Commission Revenue
971 1,339
2,541 2,479
2,742
3,375
4,315
5,476
7,540
9,093
8,259
6,044
6,834
6,657
6,147
7,003
7,599
8,791
8,048
7,939
8,685
8,327 7,377
8,040
1,833
2,701
4,829
3,813 3,410
3,019
5,911
7,761
11,303
9,574
6,567
4,666
5,720 5,814
5,734
7,132
8,397
9,947
9,252 8,974
10,175
9,013
7,382
8,455
1,390
1,231
808
570 559 581
966
1,069
897 998
1,076
1,065
1,142 996
863
642
508
433
450 565
538
588
601
809
4,194
5,271
8,178
6,862 6,711
6,975
11,192
14,306
19,740 19,665
15,902
11,775
13,697 13,467
12,744
14,777
16,504
19,171
17,750 17,479
19,400
17,929
15,360
17,305
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
18,000
20,000
FY '97 FY '98 FY '99 FY '00 FY '01 FY '02 FY '03 FY '04 FY '05 FY '06 FY '07 FY '08 FY '09 FY '10 FY '11 FY '12 FY '13 FY '14 FY '15 FY '16 FY '17 FY '18 FY '19 FY '201Q
Investment trusts Stocks Others(JPY 100 mil.)
8
2. Customer Assets in Custody
8,146 8,488 9,024 8,685 8,660 8,946 7,917 8,327 8,248 8,504 8,863
7,377 8,040
9,4709,773
10,74810,175 10,195 10,116
8,478 9,013 8,728
8,905 9,391
7,382
8,455
533
634
556
538 539 564
575
588 558
552
569
601
809
18,150
18,897
20,329
19,400 19,395 19,627
16,971
17,929 17,535
17,963
18,823
15,360
17,305
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
18,000
20,000
22,000
1QFY 2017
2Q 3Q 4Q 1QFY 2018
2Q 3Q 4Q 1QFY 2019
2Q 3Q 4Q 1QFY 2020
Investment trusts Stocks Others(JPY 100 mil.)
9
3. Quarterly Customer Assets in Custody
957 955
905
1,122
1,213
1,105
1,054
1,171
1,285
1,403
1,4971,529
1,360
1,212
1,1511,1161,119
1,244
1,295
1,3881,362
1,494 1,476 1,482
1,391
42 29 3571
94 95125
184
245
348
447
521
403357 351
321 308
362
412452
432
555 573 561
489
4.4%
3.1%
4.0% 6.4%
7.8%8.6%
11.9%
15.7%
19.1%
24.8%
29.9%
34.1%
29.6% 29.5%
30.5%
28.7%27.6%
29.1%
31.8%
32.6%
31.7%
37.2%
38.9%
37.9%
35.2%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
0
200
400
600
800
1,000
1,200
1,400
1,600
FY '96 FY '97 FY '98 FY '99 FY '00 FY '01 FY '02 FY '03 FY '04 FY '05 FY '06 FY '07 FY '08 FY '09 FY '10 FY '11 FY '12 FY '13 FY '14 FY '15 FY '16 FY '17 FY '18 FY '19 FY '201Q
Cost (left axis)
Investment trust trailer fees + wrap-account fees (leftaxis)
Cost coverage ratio (right axis)
× 100
10
4. Trend of Investment Trust Trailer Fees and Its Cost Coverage (Month-end Average)
Note: Cost coverage ratio ＝Investment trust trailer fees ＋ wrap-account fees
Cost (operating cost & expenses)
(JPY mil.)
(%)
Parent companybasis
Consolidatedbasis
11
4,347 4,361
4,746
4,4734,568
4,481 4,504
4,158
4,4594,541
4,364 4,420
4,174
1,455
1,6411,785 1,788 1,759 1,791 1,724
1,6081,679 1,692 1,749
1,6111,467
33.5%
37.6%37.6%
40.0%
38.5%
40.0%
38.3%38.7%
37.7%37.3%
40.1%
36.5%
35.2%
26%
28%
30%
32%
34%
36%
38%
40%
42%
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
5,000
1QFY 2017
2Q 3Q 4Q 1QFY 2018
2Q 3Q 4Q 1QFY 2019
2Q 3Q 4Q 1QFY 2020
Cost (left axis) Investment trust trailer fees + wrap-account fees (left axis) Cost coverage ratio (right axis)
Investment trust trailer fees ＋ wrap-account fees
Cost (operating cost & expenses)Note: Cost coverage ratio ＝ × 100 (%)
(JPY mil.)
5. Quarterly Trend of Investment Trust Trailer Fees and Its Cost Coverage
(JPY 100 mil.)
12
6. Top 5 Best Selling Investment Trust Funds (Total Amounts of 3 Months)
FY 2018 FY 2019 FY 2020
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q
Pictet Global Income Equity Fund (Monthly Dividend) 17 35 39 38 78 116 93 80 43
Shinko J-REIT Open 79 133 84 61 77 71 37 32
US NASDAQ Open (A/B) 26
GS US Growth Equity Concentrate Investment Fund （Monthly Settlement/
Quarterly Settlement/Semi-Annual Settlement）36 23
Fidelity US REIT Fund (A/B/C/D) 34 29 20
Tokio Marine JPY Asset Balance Fund (Monthly Settlement/Yearly Settlement) 95 125 80
LM Australia High Yield Equity Fund (Monthly Dividend) 25 42 28 32
Ichiyoshi Japan Venture Fund 31
US Micro Cap Equity Fund 40
Ichiyoshi Mid-Small Cap Growth Equity Fund 181 121 43 40 20
JREIT Asia Mix Open (Monthly Settlement/Asset Growth Type) 16
Japan Recover Growth Equity Fund 21 27 65 13
100-Year-Life World Allocation Fund (3% Target Receivable Type/
6% Target Receivable Type/Asset Growth Type)45 37
Nomura PIMCO World Income Strategy Fund (A/B/C/D) 17
13
159,172 157,679 157,897 156,513 156,200 156,201 156,044 156,608 156,863
33,846 33,858
29,895 31,171
30,463 30,945 31,979
26,797
29,120
0
10,000
20,000
30,000
40,000
50,000
0
20,000
40,000
60,000
80,000
100,000
120,000
140,000
160,000
180,000
200,000
1QFY 2018
2Q 3Q 4Q 1QFY 2019
2Q 3Q 4Q 1QFY 2020
Total No. of accounts of assets in custody (left-hand scale)
No. of accounts with more than JPY 10 mil. (right-hand scale)
(Accounts) (Accounts)
7. Number of Customer Accounts 【Retail】
14
878
634
1,049
1,741
738 706 694
639
713
1,729 1,683
1,273
470
678
513
308
202
397 615
271 318 249
210 289
539 615
499
142 189 177
35.1%
31.9%
37.8%35.3%
36.7%45.0%
35.9%
32.9%
40.5% 31.2%
36.5% 39.2%
30.2%27.9%
34.5%
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2,000
Apr.2019
May Jun. Jul. Aug. Sep. Oct. Nov. Dec. Jan.2020
Feb. Mar. Apr. May Jun.
New customer accounts Through referral Ratio of referrals(Accounts)
8. Number of New Customer Accounts and Ratio of Referrals【Retail】
15
299
346
386
443
511
580
620
663
710 743
783 812 821 828 832 846
869
905 940
980 1,013
1,044
1,082
1,117 1,120
23
78
10
15
20
2325
2627 27 27
29 29
32
35
42
45
5052
56 56
0
10
20
30
40
50
60
70
0
200
400
600
800
1,000
1,200
FY '96 FY '97 FY' 98 FY '99 FY '00 FY '01 FY '02 FY '03 FY '04 FY '05 FY '06 FY '07 FY '08 FY '09 FY '10 FY '11 FY '12 FY '13 FY '14 FY '15 FY '16 FY '17 FY '18 FY '19 FY '201Q
Accumulated companies lead-and co-managed (left-hand scale)
Of which, number of accumlated companies lead-managed (right-hand scale)
(Companies) (Companies)
9. Accumulated Companies Lead- and Co-managed
16
1,053 1,060 1,071 1,082 1,087 1,094 1,106 1,117 1,120
51 5152 52
5354 54
56 56
0
10
20
30
40
50
60
0
200
400
600
800
1,000
1,200
1QFY 2018
2Q 3Q 4Q 1QFY 2019
2Q 3Q 4Q 1QFY 2020
Accumulated companies lead-and co-managed (left-hand scale)
Of which, number of accumlated companies lead-managed (right-hand scale)
(Companies) (Companies)
10. Quarterly Accumulated Companies Lead- and Co-managed
Disclaimer
・This document is produced by Ichiyoshi Securities Co., Ltd. (the “Company”), and nothing in this
document shall be considered as an offer to sell or solicit an offer to buy any security, or other
instrument, including securities issued by the Company.
・This document is based on Japanese accounting standards.
・No part of this document shall be reproduced, stored in a retrieval system or transmitted in any
form or by any means, without the prior written permission of the Company.
・This document is based on the data as of June 30, 2020. (Figures less than one million yen are
rounded down)
Ichiyoshi Securities Co., Ltd.
Financial instruments business operator registered with the Kanto Local Finance Bureau (registration No. 24)
Member association: Japan Securities Dealers Association
Japan Investment Advisers Association
