Morningstar Japan K.K FY2015 Financial ResultsMorningstar Japan K.K FY2015 Financial Results (Year...

40
Morningstar Japan K.K FY2015 Financial Results (Year Ended Mar. 31, 2016) April 22, 2016 Morningstar Japan K.K Representative Director & CEO Tomoya Asakura

Transcript of Morningstar Japan K.K FY2015 Financial ResultsMorningstar Japan K.K FY2015 Financial Results (Year...

Page 1: Morningstar Japan K.K FY2015 Financial ResultsMorningstar Japan K.K FY2015 Financial Results (Year Ended Mar. 31, 2016) April 22, 2016 Morningstar Japan K.K Representative Director

Morningstar Japan K.K

FY2015 Financial Results

(Year Ended Mar. 31, 2016)

April 22, 2016

Morningstar Japan K.K

Representative Director & CEO

Tomoya Asakura

Page 2: Morningstar Japan K.K FY2015 Financial ResultsMorningstar Japan K.K FY2015 Financial Results (Year Ended Mar. 31, 2016) April 22, 2016 Morningstar Japan K.K Representative Director

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Part 1

Summary of Consolidated and Group

Companies’

Financial Results

Page 3: Morningstar Japan K.K FY2015 Financial ResultsMorningstar Japan K.K FY2015 Financial Results (Year Ended Mar. 31, 2016) April 22, 2016 Morningstar Japan K.K Representative Director

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Operating income, ordinary income, net income increase

for seven consecutive years and recorded the highest

FY2015 Consolidated Performance

(thousand yen)

FY 2014 FY 2015 YoY

Change

(%) (Apr.2014-Mar.2015) (Apr.2015-Mar.2016)

Sales 4,190,516 4,669,570 11.4

Operating Income

1,148,555 1,406,004 22.4

Ordinary

Income 1,159,610 1,406,639 21.3

Net Income 716,496 918,363 28.2

Page 4: Morningstar Japan K.K FY2015 Financial ResultsMorningstar Japan K.K FY2015 Financial Results (Year Ended Mar. 31, 2016) April 22, 2016 Morningstar Japan K.K Representative Director

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323

415 459

595

762

1,019

1,148

1,406

11.6

17.6

19.8

27.1

25.5 26.0

27.4

30.1

0

5

10

15

20

25

30

35

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2009/03 2010/03 2011/03 2012/03 2013/03 2014/3 2015/3 2016/3FY2015 FY2014 FY2013 FY2012 FY2011 FY2010 FY2008

Changes in Consolidated Operating Income

22.4%UP

(Million of JPY) Operating Income Improved to more than 30%

(%)

FY2009

Page 5: Morningstar Japan K.K FY2015 Financial ResultsMorningstar Japan K.K FY2015 Financial Results (Year Ended Mar. 31, 2016) April 22, 2016 Morningstar Japan K.K Representative Director

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191 294

238

55 70 104 238

313 328 360 394

529 573

737 859

950

191

19 74

60 101

148

193

266

(5)

55 65

66

189

282

289

456

824

313 312

115 171

252

431

245

323

415 459

595

762

1,019

1,148

1,406

(100)

100

300

500

700

900

1,100

1,300

1,500

00/12 01/12 02/12 03/12 04/12 05/12 06/12 08/03 09/03 10/03 11/03 12/03 13/03 14/03 15/03 16/03

15ヶ月決算の3ヶ月分(07/01~07/03)

子会社

モーニングスター単体

2011/3

East Japan

Earthquake

Changes in Operating Income since Listing

(June 2000) on the Stock Exchange Consolidated operating income increased for seven consecutive years and

Nonconsolidated Operating Income increased for twelve consecutive years

※1.On June 23, 2000, Morningstar shares went public on Osaka Stock Exchange’s NASDAQ Japan (present Tokyo Stock

Exchange’s JASDAQ Market).

2.Following a change in the accounting term, the year ended March 31, 2008 had 15 months. To compare realistically, therefore,

the above operating income in the fiscal year represented for the period between April 2017 and March 2008, excluding the period

from January 2007 ~ March 2007.

3.The above graphs omit consolidated eliminations.

15-month results (※2)

2008/9

Lehman shock

(JPY Million)

15-month financial results of the 3 months

subsidiary

Morningstar single stable form

Page 6: Morningstar Japan K.K FY2015 Financial ResultsMorningstar Japan K.K FY2015 Financial Results (Year Ended Mar. 31, 2016) April 22, 2016 Morningstar Japan K.K Representative Director

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39.2%

32.1%

28.7%

(FY2015)

450

35.1%

24.5%

40.4%

(FY2015)

Component ratio of Sales

and Operating income by Segment

(Data Solutions)

( Data Solutions )

( Media Solutions ) (Media Solutions )

(Asset management) ( Asset management )

1,637 1,887

1,144

551 403

(Million yen)

Sales Operating

Income

Page 7: Morningstar Japan K.K FY2015 Financial ResultsMorningstar Japan K.K FY2015 Financial Results (Year Ended Mar. 31, 2016) April 22, 2016 Morningstar Japan K.K Representative Director

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FY2015 Revenue by Segment

Segment Service name FY 2014 FY 2015

YoY

change

(Apr.2014 -Mar. 2015) (Apr.2015 -Mar. 2016) (%)

Data Solutions

Fund Data (Morningstar)

(Tablets) 164,008 271,783 65.7

(Other Data) 383,938 426,063 11.0

Total 547,945 697,845 27.4

Fund Report (Morningstar) 185,929 222,226 19.5

Money Look (E Advisor) 59,509 87,065 46.3

Newspaper Subscription (Morningstar)

327,681 307,565 -6.1

Media Solutions

Media Solutions

654,009 688,811 5.3 (Morningstar:Web advertising &

seminar)

Web Consulting 203,403 250,942 23.4

(Morningstar(Gomez))

Asset

management

Management Trust Fee

(SBI Asset management) 1,451,270 1,864,421 28.5

(JPY thousand)

Page 8: Morningstar Japan K.K FY2015 Financial ResultsMorningstar Japan K.K FY2015 Financial Results (Year Ended Mar. 31, 2016) April 22, 2016 Morningstar Japan K.K Representative Director

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※Operating income, ordinary income, increase for twelve consecutive

years and recorded the highest.

※Net Income for FY2014 included extraordinary gains of 93 million yen

from the acquisition of Searchina Co., Ltd. Excluding those gains,

FY2015 would have seen income growth on a year-over-year basis.

FY2015 Nonconsolidated Performance

for Morningstar Japan K.K.

FY 2014 FY 2015 YoY

Change

(%) (Apr.2014-Mar.2015) (Apr.2015-Mar.2016)

Sales 2,555,044 2,739,988 7.2

Operating Income

859,423 950,165 10.6

Ordinary

Income 863,111 949,822 10.0

Net Income 626,459 615,112 △1.8

(JPY thousand)

Page 9: Morningstar Japan K.K FY2015 Financial ResultsMorningstar Japan K.K FY2015 Financial Results (Year Ended Mar. 31, 2016) April 22, 2016 Morningstar Japan K.K Representative Director

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86 266 441 1,279

5,771

8,105

10,007

13,090

23,014

34,820

41,314

1

5

11

15

21

29

37

44

49 49

57

0

10

20

30

40

50

60

70

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

2011年

3月末

2011年

9月末

2012年

3月末

2012年

9月末

2013年

3月末

2013年

9月末

2014年

3月末

2014年

9月末

2015年

3月末

2015年

9月末

2016年

3月末

台数

社数

2011/9

2012/3

2012/9

2013/3

2013/9

2014/3

2014/9

2015/3

2015/9

2016/3

Number of Companies Use

Morningstar Tablet Application

57 Financial institutions

41,314 Sets

(2016 End of March)

(Number of ID) (Number of

Financial institutions)

Number of ID

Number of Financial institutions

2011/3

Page 10: Morningstar Japan K.K FY2015 Financial ResultsMorningstar Japan K.K FY2015 Financial Results (Year Ended Mar. 31, 2016) April 22, 2016 Morningstar Japan K.K Representative Director

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Growing Needs for the Robot Advisor Tool Morningstar completed comprehensive renewals

to the Robot Advisor Tool for Mizuho Bank in March 2016,

Active promotion of the Tool to financial institutions by customizing it to their requirements

Fhase1 Fhase2

・Making a proposal on long-

term fund management plans,

with an eye to investment

goals and credits &

withdrawals during the fund

management term

・Monitoring of holding funds

・Proposal to rebalance the

portfolio to include lower-cost

funds

March 2016~ October 2015~

Page 11: Morningstar Japan K.K FY2015 Financial ResultsMorningstar Japan K.K FY2015 Financial Results (Year Ended Mar. 31, 2016) April 22, 2016 Morningstar Japan K.K Representative Director

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0

20

40

60

80

100

2015年

3月

2016年

3月 2016/3

Smart phone

56.7%

Morningstar Page Views by Device Type

42.3%

56.7%

The page view ratio of compositions

According to the device

(Web 13.7%)

(App 28.5%) (App 39.6%)

(Web 17.1%)

(%)

PC

57.7%

PC

43.3%

Smart phone

42.3%

Smartphone Page View exceeds the PC Page View over the past year.

The number of application downloads exceeded 470,000.

2015/3

Page 12: Morningstar Japan K.K FY2015 Financial ResultsMorningstar Japan K.K FY2015 Financial Results (Year Ended Mar. 31, 2016) April 22, 2016 Morningstar Japan K.K Representative Director

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Continuously Development of the

Functions of the smartphone

Even a small smartphone screen, and ease of use of more than PC screens.

‘Asset Management Search Engine’ (to be

released at the end of this month) helps users in

search of management firm-specific mutual funds.

‘Purchase Simulation’ was released in March

This application significantly eases

complicated calculations, such as purchase

commissions and contract prices.

Page 13: Morningstar Japan K.K FY2015 Financial ResultsMorningstar Japan K.K FY2015 Financial Results (Year Ended Mar. 31, 2016) April 22, 2016 Morningstar Japan K.K Representative Director

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1,000

2,000

3,000

4,000

5,000

6,000

(JPY Billion )

5,265

1,590

1,882

1,226

FOY2015

2016/1/28 released

1,574 1,725

ALL FUND

FOY

FUND 35.7%

Influence of ‘Fund of the Year’ (FOY) Cash inflows data of FOY2015 released before and after

Monthly net cash inflows to FOY award-winning funds for March 2016 (approximately Yen 172.5

billion in total 36 funds) topped those to the total (approximately Yen 157.4 billion in 4,300 funds).

77.1%

109.6%

2016/1 2016/2 2016/3

Page 14: Morningstar Japan K.K FY2015 Financial ResultsMorningstar Japan K.K FY2015 Financial Results (Year Ended Mar. 31, 2016) April 22, 2016 Morningstar Japan K.K Representative Director

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Morningstar Held ‘Fund of the Year’ Seminars in 3 Major Cities

Total attendance at the three seminars (in Tokyo, Nagoya and Osaka): 1,295

・“I am pleased to have been able to hear a talk by an active fund manager.”

・The seminar provided very useful information concerning the investment

philosophy for the best fund of the year.

・I am grateful for the useful information from the evaluating company’s views.

・I hope that your public recognition of excellent mutual funds

will continue in the future.

BMW(Deutsche) H. MOSER (Switzerland)

High-class automobile manufacturer BMW and luxury watch manufacturer

H. MOSER & CIE. co- sponsored for the first time

【Special Sponsor】

【Voice of visitors】

Page 15: Morningstar Japan K.K FY2015 Financial ResultsMorningstar Japan K.K FY2015 Financial Results (Year Ended Mar. 31, 2016) April 22, 2016 Morningstar Japan K.K Representative Director

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Expanding Inflow of the Money to

High-Rating Fund of Morningstar

Sumitomo Mitsui Asset Management disclosed Morningstar

rating of all operating fund (about 140 pieces) in the website.

It is the first case in fund operating company

<2013/4> <2016/3>

Page 16: Morningstar Japan K.K FY2015 Financial ResultsMorningstar Japan K.K FY2015 Financial Results (Year Ended Mar. 31, 2016) April 22, 2016 Morningstar Japan K.K Representative Director

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395

698

0

100

200

300

400

500

600

700

800

900

1,000

2015 2016

Background: Tighter stipulations of the ‘Fiduciary Duty’ by the Financial Services

Agency of Japan(‘Financial Administration Policy' for Program Year 2015)

※Sales company is, whether the product selection of

customer-oriented and you are being questioned

Extension in ‘Fund Monitoring Service’ for Sales Companies

BANK

Securities

Insurance

()is last year

(Number)

:417(144) : 61( 31) :220(220)

Task Sales Companies

✔Excessive trading of investment trusts or other means

to generate commissions.

✔Transparency of commissions is also an issue to

address.

Aspiration

Sales Companies

✔Provision of high-quality financial products and

services, of truly benefit to clients.

The Number of Contracts of

‘Morningstar Fund Monitoring Service’

Page 17: Morningstar Japan K.K FY2015 Financial ResultsMorningstar Japan K.K FY2015 Financial Results (Year Ended Mar. 31, 2016) April 22, 2016 Morningstar Japan K.K Representative Director

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ASATSU-DK INC. has decided to introduce the service – the first project.

Starting the Investment Advisory Service using the “Robo Advisors Tool”,

for Members of Defined Contribution-type Pension Plans

Investment consulting

Contract descriptions

(including members)

Neutral investment advice

through the Robo advisors

【Features of the service】 ・The service will leverage the Robo Advisor tool that has been introduced by a number of financial institutions

・Morningstar Asset Management (a registered investment advisory firm) will sign contracts with companies

that have already adopted DC plans to provide their DC members with impartial and objective investment support.

・Provision of an investment advice program, tailored to fit different portfolios of companies with DC plans.

・The service can be accessible from any type of device (e.g. PC, smartphone and tablet).

Investment advisory contract

DC Adopter

Subscriber

Investment advisory contract

(covering DC members as well)

Provision of impartial investment support

(i.e. advice) using the Robo Advisor tool

Robo Advisor will propose the optimal

fund allocation and individual funds.

Details available by telephone or email.

Page 18: Morningstar Japan K.K FY2015 Financial ResultsMorningstar Japan K.K FY2015 Financial Results (Year Ended Mar. 31, 2016) April 22, 2016 Morningstar Japan K.K Representative Director

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Financial Results of E-Advisor

( JPY thousand)

FY 2014 FY 2015 YoY

Change

(%) (Apr.2014-Mar.2015) (Apr.2015-Mar.2016)

Sales 59,508 87,065 46.3

Operating Income

31,818 52,422 64.8

Ordinary

Income 32,704 52,336 60.0

Net Income 20,839 33,823 62.3

Operating income, ordinary income, net income are

a significant increase of 60% more

Page 19: Morningstar Japan K.K FY2015 Financial ResultsMorningstar Japan K.K FY2015 Financial Results (Year Ended Mar. 31, 2016) April 22, 2016 Morningstar Japan K.K Representative Director

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E-Advisor is Transforming its ‘Money Look’ Service from

‘Asset Management’ to an ‘Asset advice’ Tool

It provides a function of regular information-gathering and reporting the status of

individual assets.

It takes into consideration future links with Morningstar’s own data.

Provided as an information-gathering infrastructure of

affluent financial planning in independent FP company.

Collection of transaction data FPs confirm asset status. Financial planning based

on actual conditions.

Collect asset information,

using the account

aggregation function.

The tool provides a near-

automated function to

confirm asset status on a

regular basis.

Based on actual asset data,

the tool presents an optimal

asset management plan.

Page 20: Morningstar Japan K.K FY2015 Financial ResultsMorningstar Japan K.K FY2015 Financial Results (Year Ended Mar. 31, 2016) April 22, 2016 Morningstar Japan K.K Representative Director

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Significant increase of Operating income,

ordinary income are more than 60%, of Net income is 71.1%

Financial Results of SBI Asset Management

FY 2014 FY 2015 YoY

Change

(%) (Apr.2014-Mar.2015) (Apr.2015-Mar.2016)

Sales 1,451,270 1,864,421 28.5

Operating Income

239,604 395,016 64.9

Ordinary

Income 239,168 396,250 65.7

Net Income 154,271 264,026 71.1

(JPY thousand )

Page 21: Morningstar Japan K.K FY2015 Financial ResultsMorningstar Japan K.K FY2015 Financial Results (Year Ended Mar. 31, 2016) April 22, 2016 Morningstar Japan K.K Representative Director

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Total net assets as on March 31, 2016 = Yen 186.9 billion

Change in Net Assets of the Investment

Fund operated by SBI Asset Management (JPY Trillion)

1,075 1,098

1,129 1,173

1,201 1,208 1,181

1,145

1,233 1,271 1,288

1,347

1,394

1,501

1,621

1,779

1,672 1,673

1,933 1,930

2,038

1,872

1,738

1,869

800

1,000

1,200

1,400

1,600

1,800

2,000

2,200

2014年4月 2014年7月 2014年10月 2015年1月 2015年4月 2015年7月 2015年10月 2016年1月 2014/10 2015/4 2015/7 2015/10 2016/1 2016/3 2014/4 2014/7 2015/1

Page 22: Morningstar Japan K.K FY2015 Financial ResultsMorningstar Japan K.K FY2015 Financial Results (Year Ended Mar. 31, 2016) April 22, 2016 Morningstar Japan K.K Representative Director

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Net Cash Inflows to Major Funds

(JPY Billion)

Ranking Public/

Private Fund name

2015/4~

2016/3

1 Private SBI Allianz Japanese stocks concentrated

investment strategy fund (from 2015/9/9)

(For Daiwa Securities’ Fund Wrap service: To Japanese share selection )

382

2 Public Global REIT triple Premium Fund 264

3 Public SBI Japanese stocks 3.7 Bull 221

4 Public

SBI small and medium-sized undervalued growth

stock fund Jay Revive

( 『jrevive』 and 『jreviveⅡ』 ) 78

5 Public EXE-I series(5 fund total) 51

Net inflows top 5 funds April 2015 to March , 2016

Page 23: Morningstar Japan K.K FY2015 Financial ResultsMorningstar Japan K.K FY2015 Financial Results (Year Ended Mar. 31, 2016) April 22, 2016 Morningstar Japan K.K Representative Director

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Ranking Asset Management Company Net capital inflows Ranking Asset Management Company Net capital inflows

1 Nomura 33,140 26 JPMorgan Chase & Co 277

2 Daiwa 14,524 27 Resona AM 277

3 SMBC Nikko 13,684 28 Rakuten 276

4 Mitsubishi UFJ Kokusai 9,206 29 Astmax 269

5 Nissei 6,688 30 Ichiyoshi 247

6 Daiwa Sumigin 6,360 31 Schroder 241

7 Shinko 5,915 32 Sky Ocean 234

8 Sumitomo Mitsui Financial 4,731 33 Aozora 171

9 Sumitomo Mitsui Trust 4,663 34 Lyxor 160

10 Fidelity 4,261 35 ChibaginAM 138

11 DIAM 2,833 36 PineBridge 112

12 BlackRock 2,751 37 Barings 103

13 Goldman Sachs 2,585 38 Kamakura 95

14 Alliance Bernstein 1,626 39 Norinchukin Zenkyoren 95

15 Tokyo Marine 1,535 40 Eastspring 92

16 Okasan 1,333 41 JP invest 86

17 SPARX 929

18 Mizuho 890 71 BNY Mellon -223

19 Shinkin 833 72 BNP paribas -245

20 Simplex Inc 764 73 Meiji Yasuda -276

21 SBI 594 74 HSBC -318

22 Rheos Capital Works 586 75 Pictet -342

23 Amundi Japan 357 76 Invesco -402

24 Carrera 303 77 Deutsche Bank -776

25 SAISON 302 78 Sompo Japan Nipponkoa -877

78/21

Net capital inflows rankings April 2015 to March ,2016

Net cash Inflows

by the Fund Management Company

(JPY Billion)

Page 24: Morningstar Japan K.K FY2015 Financial ResultsMorningstar Japan K.K FY2015 Financial Results (Year Ended Mar. 31, 2016) April 22, 2016 Morningstar Japan K.K Representative Director

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R&I Fund Awards: SBI Asset Management Won the Highest

Award in the General Japanese Stock’ Category

Sector Award Sector Award target

Japanese stock comprehensive

sector Highest award SBI Asset Management

Japanese small stock sector Best Fund Award SBI small and medium-sized undervalued growth stock fund

Jay Revive

( 『jrevive』 and 『jreviveⅡ』 ) NISA Japanese small stock sector Best Fund Award

Japanese small stock sector Excellence Fund

Award Small and medium-sized growth stock fund "next Japan"

Asian stock Multi-Country Excellence Fund

Award SBI India & Vietnam Stock Fund

Other recent media coverage

・February 8, 2016: Won first place in the ‘Sharp Ratio Ranking’ of Nikkin Investment Trust News (issued on February 8, 2016).

・Ranked third in the “2015 Growth Rate Rankings of Open-ended Stock Investment Trusts” (evening edition on January 14, 2016)

・Placed first in the “3-year Growth Rate Rankings” (evening edition on January 7, 2016)

・On December 17, 2015, in the “Investment Trust NAVI” show, on Nikkei CNBC TV channel, SBI Asset Management was referred

to by President Usami of Angel Japan Asset Management Limited, an investment advisory firm.

・Received a ‘5-star’ rating from NRI’s investment trust evaluation report “Fundmark” in its ‘Japanese Shares/Style/Medium to

Small-Cap’ category.

On March 6, 2016, NIKKEI VERITAS gave the highest rating to SBI

Asset Management for its capability in managing Japanese share funds.

‘SBI Growing Medium to Small-Cap Value Shares

Fund (J-Revive)’ has drawn increasing attention

after much media coverage.

Page 25: Morningstar Japan K.K FY2015 Financial ResultsMorningstar Japan K.K FY2015 Financial Results (Year Ended Mar. 31, 2016) April 22, 2016 Morningstar Japan K.K Representative Director

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Part 2

Business focus to changes in the business

environment

Page 26: Morningstar Japan K.K FY2015 Financial ResultsMorningstar Japan K.K FY2015 Financial Results (Year Ended Mar. 31, 2016) April 22, 2016 Morningstar Japan K.K Representative Director

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Cash & Savings

52%

Bond 1%

Investment Fund 6%

Equity 10%

Insurance & Pension

29%

others 2%

Cash & Savings

14% Bond 4%

Investment Fund 13%

Equity 34%

Insurance &

Pension

32%

others 3%

Asset composition ratio of households

in Japan and United States

< JAPAN >

1,741 Trillion yen

< USA >

70.3 Trillion dollars

Japanese households are undergoing a shift from ‘savings’ to ‘investment’.

※Source: ‘Flow of Funds - Overview of Japan, the United States and the Euro area – ‘,

Research and Statistics Department, Bank of Japan (published on April 5, 2016)

401K

10%

Page 27: Morningstar Japan K.K FY2015 Financial ResultsMorningstar Japan K.K FY2015 Financial Results (Year Ended Mar. 31, 2016) April 22, 2016 Morningstar Japan K.K Representative Director

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979

1,145

1,322

1,055

1,224

1,300 1,279

1,434

1,517

1,744 1,726

55 69 80 52 61 61 57 64 82 94 99

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2,000

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

米国

日本

USA

JPN

※USA=ICI、JPN=Investment Company Institute

1$=110 yen

Changes in Net Assets of Publicly-offered

Investment Trusts in the United States and Japan (JPY Trillion )

Page 28: Morningstar Japan K.K FY2015 Financial ResultsMorningstar Japan K.K FY2015 Financial Results (Year Ended Mar. 31, 2016) April 22, 2016 Morningstar Japan K.K Representative Director

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Defined-Contribution (401K)

Pension Account in Japan and US (JPY Trillion)

480

378

482

540 560

611

689

746

3.0 3.2 2.8 3.8 6.0 6.8 7.4 8.8

0

100

200

300

400

500

600

700

800

2008年

3月

2009年

3月

2010年

3月

2011年

3月

2012年

3月

2013年

3月

2014年

3月

2015年

3月

米国

日本

USA

JPN

2009/3

2010/3

2011/3

2012/3

2013/3

2014/3

2015/3

※USA=ICI、JPN=Administrative agency liaison council

1$=110 yen

2008/3

Page 29: Morningstar Japan K.K FY2015 Financial ResultsMorningstar Japan K.K FY2015 Financial Results (Year Ended Mar. 31, 2016) April 22, 2016 Morningstar Japan K.K Representative Director

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≪For better management of DC plans≫

・With the aim of easier identification of investment choices, mandatory provision of continuous investment

education, upper limits of the number of investment choices and other measures will be implemented.

・Predetermined regulations for the designated fund management operation will be reviewed and improved

if necessary, together with the inclusion of provisions in the designated fund management operation with

an eye to facilitating the construction of a portfolio which is likely to produce the effectiveness of diversified

investment.

The DC Plan Market is Increasingly Showing

Potential for Further Growth

≪Promotion and enhancement of corporate-type pension plans≫

・For medium and small companies (with 100 or fewer employees) that are unable to introduce a

corporate pension program on account of extra administrative costs or other constraints, ‘simplified

DC plans’ will be established.

※Source: Extracts from ‘The Bill for Partial Revision to the Defined-Contribution Pension Law’, the Ministry of Health, Labour and Welfare

≪Steps to cope with diversifying life courses≫

・The category III insured (i.e. the dependent spouse of a company employee), together with members

of both corporate pension plans and public service employees’ mutual aid associations, can also hold

an individual-type plan.

A bill to reform the pension system has been passed by the Upper House in Japan.

The bill is under deliberation by the country’s Lower House.

It is expected that the new bill will clear the Diet by the

end of the current session on June 1, 2016.

Page 30: Morningstar Japan K.K FY2015 Financial ResultsMorningstar Japan K.K FY2015 Financial Results (Year Ended Mar. 31, 2016) April 22, 2016 Morningstar Japan K.K Representative Director

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Sales company

(Bank)

Sales company

( Bank )

Sales company

(Securities)

Sales company

(Securities)

投資信託INDEX

Asset

management

Investment trust INDEX(57Company、4.1 Million units )

Asset

management

Asset

management Asset

management

Fund manager

Interview Video Report

Morningstar Aims to Provide a Platform for

Investment Information using Tablets

Individual

investor Individual

investor

Individual

investor Individual

investor

Page 31: Morningstar Japan K.K FY2015 Financial ResultsMorningstar Japan K.K FY2015 Financial Results (Year Ended Mar. 31, 2016) April 22, 2016 Morningstar Japan K.K Representative Director

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SBI Securities, kabu.com Securities, etc.

Step 1.

Diagnosing the risk

tolerance from

Questionnaire.

Step 2. Identification of an

appropriate investment

type to match the risk

tolerance.

Step 3.

Proposal of a

model portfolio

Step 4.

Proposal of specific

investment funds

Expected to FinTech related demand of financial

institutions by providing Lobo advisor tool

Page 32: Morningstar Japan K.K FY2015 Financial ResultsMorningstar Japan K.K FY2015 Financial Results (Year Ended Mar. 31, 2016) April 22, 2016 Morningstar Japan K.K Representative Director

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Morningstar has made a step forward next-

generation investment education

Robo Advisor

E-Learning

※Image is under development

Provision of the E-learning and Robot Advisor tools that utilizing AI and big data.

Page 33: Morningstar Japan K.K FY2015 Financial ResultsMorningstar Japan K.K FY2015 Financial Results (Year Ended Mar. 31, 2016) April 22, 2016 Morningstar Japan K.K Representative Director

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Providing total solutions of the fund of funds and

fund wrap

Individual investor

Portfolio

Investment

Information &

Evaluation

data

Prepare a portfolio to provide to investors

Morningstar

Asset Management

Equity 60

Bond

20

REIT

10

PE

10

Stable growth Growth Active

(Evaluation information of the

global fund · ETF)

・Construction of an optimal portfolio

・Selection of high performance fund

・Execution of monitoring and

rebalancing

Equity 20

Bond 70

REIT 10

Stable

Investment

advisory

Sales company

Equity 50

Bond 30

REIT 10

HF 10

Equity 40

Bond 50

REIT 10

Balance

Equity 20

Bond 60

REIT 10

HF 10

Page 34: Morningstar Japan K.K FY2015 Financial ResultsMorningstar Japan K.K FY2015 Financial Results (Year Ended Mar. 31, 2016) April 22, 2016 Morningstar Japan K.K Representative Director

34

Future Policy and Basic Strategy of SBI Asset Management

【 Product Strategy 】

・Continue to focus on development in ‘flagship funds ‘.

Flagship fund candidate: J-series (Japanese medium and small cap shares), Indian and Vietnam shares,

My-Wrap, 3.7 Bull-Bear, EXE-I, diversified-type (TRIPRE/PIMCO), etc.)

・New funds

With an eye to capturing potential needs in the future market environment, the creation of funds for both

the short and medium to long-term are under discussion.

【Basic policy】 “To manage total assets of 1 trillion yen by 2020”

【Channel-specific Strategies】

First step: Establish our brand status taking advantage of our strengths as a member of the SBI

group

Second step: Take advantage of established brand status, customer powerful appeal fund (above

flagship fund), expand the sales companies primarily regional banks

Page 35: Morningstar Japan K.K FY2015 Financial ResultsMorningstar Japan K.K FY2015 Financial Results (Year Ended Mar. 31, 2016) April 22, 2016 Morningstar Japan K.K Representative Director

35

167 186 190

238

273

316

369

438

524

0

100

200

300

400

500

600

2011 2012 2013 2014 2015 2016 2017 2018 2019

□ Launched an Indonesian joint venture with the Corfina Group, the financial service and IT business

operator in the local market.

□ The first company in Indonesia that obtained a license to run a business engaging in an investment

advisory service for corporate clients.

□ The population of Indonesia is 250 million; of which just below 300,000 hold investment trusts. Investment

trusts represent just 2.1% of the country’s GDP, indicating that the market has great future growth potential.

(IDR Trillion)

(Forecast) ※ 出所:The Cerulli Report ・ Asset Management in Southeast Asia 2015

Expanding Investment Trust Market in Indonesia

Page 36: Morningstar Japan K.K FY2015 Financial ResultsMorningstar Japan K.K FY2015 Financial Results (Year Ended Mar. 31, 2016) April 22, 2016 Morningstar Japan K.K Representative Director

36

FY2015

■Received an order for a report concerning the evaluation of state-run plantations’

pension funds.

■With the launch of company websites, it began to account for network advertising

revenue.

Future Development of Indonesian Business

Outlook for FY2016

①To enhance further the evaluation service for pension funds (it has already

received a number of inquiries; plans to hold a seminar targeting pension fund

sponsors and management firms).

②To increase orders for website advertising (direct sales other than network

advertising to be commenced).

③The development and marketing of investment trust sales support products

targeting FPs (Indonesian-version of Investment Trust INDEX) will be

commenced. (Development was undertaken in January 2016).

Page 37: Morningstar Japan K.K FY2015 Financial ResultsMorningstar Japan K.K FY2015 Financial Results (Year Ended Mar. 31, 2016) April 22, 2016 Morningstar Japan K.K Representative Director

37

Shareholder Returns

Part 3

Page 38: Morningstar Japan K.K FY2015 Financial ResultsMorningstar Japan K.K FY2015 Financial Results (Year Ended Mar. 31, 2016) April 22, 2016 Morningstar Japan K.K Representative Director

38

1.8 2.0

2.5

3.0 3.3

4.2 5.0

7.0

5.5 0.5

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

2009年3月期 2010年3月期 2011年3月期 2012年3月期 2013年3月期 2014年3月期 2015年3月期 2016年3月期

記念配当

普通配当

Dividend Increase for 7th consecutive Year

27.3%UP

(JPY)

2015 FY 2016 FY Confirm Dividend increase amount

(rate)

Ordinary dividend 5円00銭 7円00銭 2円00銭(40.0%)

Commemorative dividend 50銭 - -

Year-end dividend per share

5円50銭 7円00銭 1円50銭(27.3%)

<Year-end dividend>

Dividend of fiscal year ended March 31 2016, for the ordinary dividend,

2 yen (40.0%) increased, to 7 yen

Increase of 0.5yen per share from 6.5 yen of the dividend forecast announced on February

18,

2009 2010 2011 2012 2013 2014 2015 2016

Ordinary dividend

Commemorative dividend

Page 39: Morningstar Japan K.K FY2015 Financial ResultsMorningstar Japan K.K FY2015 Financial Results (Year Ended Mar. 31, 2016) April 22, 2016 Morningstar Japan K.K Representative Director

39

Shareholder Incentives The provision of free coupon of "kabushiki shinbun web version (usually monthly

4,320 yen (tax included)" and " ALA plus" and provision of half-price discount

tickets of Health supplements and cosmetics containing ALA

Unit number

(number of

shares)

(1) 『Stock Newspaper

for WEB』 (2) ①『ALAplus ②「ALA cosmetics 」 Total

1 unit (100 shares) 2016/5/1~2016/7/31

¥15,940 2 unit (200 shares) 3month free Ticket

3 unit (300 shares) (¥12,960)

4 unit (400 shares) 2016/5/1~2016/10/31

¥28,900 5 unit (500 shares) 6month free Ticket

6 unit (600 shares) (¥25,920)

7 unit (700 shares) 2016/5/1~2017/1/31

¥41,860 8 unit (800 shares) 9month free Ticket

9 unit (900 shares) (¥38,880)

2016/5/1~2017/4/30

¥54,820 10 unit

(1,000 shares)~ 12month free Ticket

(¥51,840)

Free coupon for one set of ‘ALAplus’,

the nutritional supplements containing

Alpha-Lipoic Acid (ALA), sold by SBI

ALApromo Co., Ltd. (retail price Yen

2,980).

A complimentary discount

merchandise coupon, which entitles

the holder to buy nutritional

supplements or cosmetics containing

ALA, sold by SBI ALApromo Co., Ltd.,

at a 50% discount to their retail prices

Page 40: Morningstar Japan K.K FY2015 Financial ResultsMorningstar Japan K.K FY2015 Financial Results (Year Ended Mar. 31, 2016) April 22, 2016 Morningstar Japan K.K Representative Director

40

Changes in the Number of Shareholders

Number of shareholders increased to about 7,000

by aggressive shareholder return.

(number of shareholders)

2,584 2,488

5,114

6,628

6,997

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

2012年3月末 2013年3月末 2014年3月末 2015年3月末 2016年3月末 2013/3 2014/3 2015/3 2016/3 2012/3