Mirae Asset Securities

Transcription

1 Mirae Asset Securities Investor presentation Q3 FY29 Company fiscal year starts in April

2 Disclaimer i This presentation may contain forward-looking statements about Mirae Asset Securities and unaudited preliminary figures internally collected as of December 29. These figures are subject to change without prior notice, and Mirae Asset Securities is neither obligated to provide revisions, nor responsible for any loss or inconvenience caused by changes regarding the projection and forecast presented in this document. 1

3 Table of contents t I. Industry overview 3 II. Company overview 6 III. Company operational overview IV. Group overview Appendix

4 I. Industry overview I II. I. Mutual fund industry Equity market 3

5 I. Mutual fund industry In 29, the mutual fund market AUM and equity fund EUM declined 8% and 1% respectively Mutual fund industry Equity fund market Mirae Asset Investments t KrW Trillion 35 KrW Trillion KrW Trillion 16 시장 Domestic 국내주식형 CAGR : 22% 6 미래에셋 Domestic 국내CAGR 주식형: 24% 시장 Overseas 해외주식형 CAGR : 73% 미래에셋 Overseas 해외 CAGR 주식형 : 87% Portion of systematic Portion of systematic 52 investment plan 6 -% investment plan MMF 3 채권형 Fixed income fund 276 혼합형 Balanced fund -15% 주식형 Stock fund 3% 19% 26% % 16% 17% 28% 8 13% 15 38% 57% 18% 11% 6 53% 25% % % 24% 5 47% 46% 2 21% 23% 1% Source : KOFIA, excludes PEF, REITs and etc. 4

6 II. Equity market Although equity fund AUM continued to grow even after the start of the financial crisis, the redemption rate started to accelerate as investors fund investments started to break-even resulting in net out flow for 29 Domestic equity funds net subscription KrW Trillion Mirae Asset Group 8,8 Others Industry 6,6 4,4 2, , Source: KOFIA accumulative -4, Feb-8Apr-8Jun-8Aug-8Oct-8Dec-8Feb-9Apr-9Jun-9Aug-9Oct-9Dec-9 Daily trading volume KrW Trillion KOSPI KOSDAQ Source : KRX 5 Overseas equity funds net subscription KrW Trillion 3, 3 2, 2 1, 1-1, 1-2, -3, Mirae Asset Group Others Industry , Source: KOFIA accumulative Feb-8Apr-8Jun-8Aug-8Oct-8Dec-8Feb-9Apr-9Jun-9Aug-9Oct-9Dec-9 Daily trading volume Others Retail Foreign institution Domestic institution Source : KRX

7 II. Company overview I II. III. IV I. Diversified revenue & superior return Outstanding growth Managing growth and cost IV. Growth initiatives 6

8 I. Diversified revenue & superior return The Company s core strength lies in the advanced and balanced revenue model Net revenue comparison Korea top 5 firm s average Mirae Asset Securities ROE 47% 34% 26% 3% MAS Mirae Asset Securities Industry (Unit : %) Brokerage Wealth management Investment banking Interest t profit & other Trading income & PI 48% % 14% 43% -16% 36% 3% 31% 2% 8% 3% 11% 1% 18% 14% 19% 31% % 1% 9% 1%

9 II. Outstanding growth While wealth management revenue increased 5% QoQ due to rise in fund NAV, brokerage commission fell 37% due to reduced trading volume Wealth management Brokerage KrW Billion 9 6 One-time fee 55% KrW Billion KrW Billion 4 3 Investment banking KrW Billion Interest profit Excl. PI profits 8

10 III. Managing growth and cost On the back of stable revenue in the wealth management and institutional brokerage business, the Company aims to realize economies of scale while managing costs efficiently during market down turn Revenue growth vs. cost EBT growth KrW Billion Revenue Cost KrW Billion Channel strategy Efficient i branch network Strengthen fee base & On-line New business CMA & OTC products Overseas brokerage HNWI platform Q1~Q3 FY9 Annualized Globalization & IB HK/Vietnam/UK/US/India/Brazil Fee based IB business Note: Excl. OTC trading gain/loss 9

11 IV. Growth initiatives Despite the slow down in WM business due to fund redemptions, the CMA business has continued to grow enhancing the company s competitiveness with banks Channel strategy New business Globalization & IB Efficient i branch network CMA & OTC products Strengthen fee base & on-line Overseas brokerage HNWI platform HK/Vietnam/UK/USA/India/Brazil /UK/USA/I /B il Fee based IB business Company s WUM(Fund) # of branches # of CMA accounts (in Mn) Krw Trillion Mirae Asset Securities S K D W HW Mirae Asset Securities Hong Kong Vietnam China Brazil & Others UK US

12 III. Company operational overview I II. III. IV I. Wealth management Brokerage Investment banking IV. Corporate pension 11

13 I. Wealth management In the midst of fund redemption, systematic investment plan turned positive for the company in Q3, enabling us to build a more solid wealth management business Wealth under management (WUM) Other wealth management biz KRW Trillion 38 Trillion 1% Other MMF Balanced fund Fixed-Income fund Domestic stock fund Overseas stock fund Other : PEF, REIT etc % Trust Wrap account CMA Advisory Fund sales balance (as of Dec. 29) Industry (mn) Company M/S % % # of SIP account 3.4% % % 5.9% 6.6% %

14 II. Brokerage Despite the drop in brokerage M/S from peak of 8.5% to 7.2%, due to our strong mix in institutional biz, brokerage commission have grown CAGR 11% over the past few years Brokerage breakdown Brokerage M/S Trading value Commissions 9% 8.1% 7.1% 8.2% 8.5% 7.2% 24% 21% Institution 1% 2% 48% 41% 13% 6% 3% % 75% 77% Off-Line (Retail) On-Line (Retail) FY5 FY6 FY7 FY8 FY9 11% Q1~Q3 9% 87% Average fee 43% 48% Channel (bps) FY FY FY Q1~Q3Q FY9 Institution Note : Top 3 (S, D, W), as of June 29 Top 3 average On-line retail

15 III. Investment banking The Company s investment banking group focuses on generating stable cash flow through specializing on advisory and fee based business IB revenue Structured products KrW Billion KrW Billion Prop. trading Trust Underwriting Structured securities Advisory fee KrW Billion 1.9% 1.1% 1.2% 1.2% 1.3%.9% 1.%.7%.6% 62 5%.5%.6% Interest income 1 Equity 8% 5% 5% 4% Fixed income 14% 14% 13% 13% 1% 3% 3% 8% 5% 7% 7% 9% % 17% 5 Beneficiary i certificates t Structured product, Future future & & Option option Stock warrants Negotiable Negotiatable commercial papers 29. ELS new issuance Commission rate Margin loan Loan 16% 22% 27% 29% 36% 34% 28% 29% 3% Bank deposit & Others Fixed-income % 6% 54% 54% 52% 55% 58% 53% 46%

16 IV. Corporate pension The Company s corporate pension group has become the #1 DC provider by providing differentiated consulting services to deliver top returns to our clients Corporate pension M/S Plan performance KrW Trillion M/S 28.7% 2.9 < DC > < DB > 26.4% Insurance Securities Bank Company s M/S (RHS) 4% 3% Mirae Asset Securities Bank Securities Insurance Source: FSS (Jan 26 ~ Dec. 29) Mirae Bank Securities Insurance Asset Securities 2% Korea's expected CP market size as % of GDP 5 % 1% 48% KrW Trillion CP Mkt AUM % of GDP % 2% 3% 5% 86 8% % 25 22% 29 21(E) 211(E) 2(E) 213(E) 214(E) 215(E) 1% 75% 5% 25% Note: Based on KIRI's 215 estimate of 25 tn KrW and applying CAGR of 71% from 29 to 215 CAGR 3% GDP growth assumption applied from 29 to %

17 IV. Corporate pension While large companies with 5 or more employees adoption rate of CP is 35%, the overall adaption rate is still below 14% providing ample opportunity for Mirae Asset Securities targeting g small and mid sized companies in the DC market Pension AUM rank AUM & Plan type mix KrW billion Bank Life insurance 1% 2% 1% Others KB 1,424 Samsung 3,117 29% Indirect investments Shinhan 1,296 Kyobo 686 1% 1% 94% Insurance products 46% 86% Bond Woori 1,177 Korea 355 Bank time deposits 49% 15% 27% IBK 676 Mirae Asset 249 Portion of DC NH 593 Shinhan 11 KDB 554 Tongyang 97 Hana 444 Dongbu 36 Securities 4% Insurance KEB 273 Heungkuk 23 Corporations CP adoption rate Busan 136 Met life 11 KN 89 Kumho 8 Securities Property insurance Mirae Asset 49 Samsung 59 Thousands % 9% Bank Source: FSS (as of December, 29) Note: Others(reserve to be invested) # of companies (5 or more employees) % of companies (already adopted CP system ) Samsung 246 LIG Korea 215 Hyundai 47 6.% 71 Woori Dongbu % 5 Daewoo 161 Meritz Shinhan 153 Hanwha Dongyang 11 Lotte 3 Hyundai 89 Green % 13.6% 15.%.% 9.% 6.% 3.%.% Source: FSS (Dec. 29) 16 Source: FSS (Dec. 29) Note: % based on 52K number of corporations as of Dec 7

18 IV. Corporate pension Corporate pension market is poised to grow rapidly due to Korea s fast aging demographics and the government s need to manage high longevity risks Aging/Aged/Post-aged society Aging problem The aged Productive population 36yrs 8yrs 26yrs 1) Post-aged society % 14% 7% Aged society Aging society Germany Japan Korea 1) It is classified as 'post-aged society' when more than 2% of the population is consisted of people with age 65 or more Corporate pension market as % of GDP Trend of USA CP market as % of GDP % 1% 5% 116% 3% 79% 82% 5% 1% 75% 5% 51% 86% 17% 116% % 14% 1.4% 25% % Korea UK USA NetherlandsOECD Ave. Source: KIRI, HRI, PRIMA (27 for USA, 28 for others, 29 for Korea) 17 Source : PRIMA

19 IV. Group overview I II. III. I. Innovator in Korea capital market Mirae Asset Group structure Mirae Asset Investments AUM 18

20 I. Innovator in Korea capital market Mirae Asset is an innovator of Korea s capital market bring new paradigm shifts through its unique First-See & First-In strategy Korea s first mutual fund First Wrap Account & Monthly Savings Plan First REITs & PEF First Global AMC First overseas fund First Retirement Annuity Institute First Biz Unit System First to establish a subsidiary in Vietnam Overseas expansion to UK, USA, Brazil, China Leading the market with Alternative Investments Variable Insurance Overseas Expansion Create the market for Monthly Savings Plans Wrap Account REITs PEF Corporate Pension Opened the era of Asset Management Industry Mutual Fund Monthly Savings Plan Overseas Fund 19

21 II. Mirae Asset Group structure Mirae Asset was established in Since then, the group have become one of Asia s leading money managers* based on our full range of financial services Mirae Asset Securities Wealth management Brokerage service Investment banking Retirement pension Mirae Asset Life Insurance Life insurance Variable insurance Retirement pension U.S.A U.K. Vietnam Brazil Korea Hong Kong Korea Securities Korea Mirae Asset Financial Group Life Insurance Capital &V Venture Asset Management Hong Kong India U.S.A. UK U.K. Vietnam Mirae Asset Global Investments Traditional long only equity Mirae Asset Maps Global Investments Alternative investments (PEF, REITs) Korea Brazil Mirae Asset Capital & Venture M&A Advisory service Investment in start-up companies * Mirae Asset Financial Group s Total AUM ranked 6 th largest in Korea and 15 th largest in Asia ex Japan in 28 Institutional Investor Asia s 1 Top money manager 28. Asian Investor, Hong Kong based monthly magazine publisher that specializes in Asian asset management industry, awarded annual Asian Investor 29 Investment Performance Award in May 29. Mirae Asset Global Investments won both the best Emerging Market Equity and Korea Onshore Fund House awards this year. 2

22 III. Mirae Asset Investments AUM Mirae Asset investment arm continues to lead the asset management industry with improved market share through timely product offerings and superior fund performance Asset management Industry Stock fund market Stock fund return &M/S KrW Trillion Market CAGR : 14% Mirae Asset CAGR : 63% M/S 18.4% KrW Trillion Market CAGR : 76% Mirae Asset CAGR : 98% M/S 35% Unit : % 1 M 3 M 6 M 1 Yr Independence Discovery Dream Target Insight China AP Consumer KOSPI KOSDAQ MSCI AP (ex Japan) Unit: Krw tn AUM Mirae Asset % 18.5% 18.% S ITC % 13.% 15.5% SH BNP % 7.8% 7.8% Source: KOFIA Source: KOFIA Source : KOFIA (As of December, 29) 21

23 Appendix I II. III. I. Summary income statement Summary balance sheet Mutual fund fee structure 22

24 I. Income statement Fiscal year ends March FY29 FY28 FY28 (Unit: Billion KrW) Q3 Q2 Q1 Q4 Q3 Q2 Q1 Operating Income , , Net Revenue (Operating Profit + G&A Expense) ) Wealth Management ) Brokerage ) Investment Banking ) Net Interest Profit & Other ) Trading Income & Principal Investments (6.7) (.4) (.7) 18.2 (17.8) Operating Expense , , General and Administrative Expense ) Salary Expense ) Marketing Expense ) Fixed Expense ) Other Expense Salary as % of G&A Expense 57% 54% 7% 58% 47% 58% 59% 64% 62% 59% Marketing Expense as % of G&A Exp. 8% 8% 4% 7% 9% 8% 6% 7% % 16% Fixed Expenses as % of G&A Expense 14% 16% 13% 16% 18% 17% 15% 14% 11% 11% Operating Profit Non-Operating Income (.) Non-Operating Expense Net Income Before Tax Net Income FY27 FY26 Note: Current and historical numbers are based on pr-audit results provided for investors convenience. 23

25 II. Balance sheet FY29 FY28 (In KrW billions) Q3 Q2 Q1 Q4 Q3 Q2 Q1 FY27 FY26 Total asset 7, ,61.2 7,82.1 6,67.2 6,4.9 6, ,27.8 6, , Cash and deposit 1, ,69.3 1, ,21.1 1,3.8 1,25.5 1, , Securities 5,46.6 5,16.7 4,69.2 4,61.7 4,34.5 4,424. 4,88.9 4, , Derivatives Loans Tangible fixed asset Other assets Total liabilities 5,888. 6, , , ,4.9 5, , , , Deposit liabilities , , Leveraged liabilities 4, , , , ,43. 3, ,97.2 4, , Other liabilities Total stockholders' equity 1,74. 1,71.6 1,76.2 1, , , , , Capital stock Capital surplus Accumulated other comprehensive income (39.3) (42.4) (15.3) (18.5) 4.5 (.1) 4. Retained earning Total liabilities & stockholders' equity 7, ,61.2 7,82.1 6,67.2 6,4.9 6, ,27.8 6, ,915.2 Note: Current and historical numbers are based on pr-audit results provided for investors convenience. 24

26 III. Mutual fund fee structure Industry Mutual fund fee structure t MAS Mutual fund fee structure t MAS WM fee(recurring f Vs. one-time) Management fee (LHS%) Distribution fee (LHS%) Distribution portion (RHS%) 3. Other (%) Management Fee (%) Recurring distrigution distribution fee fee (%) 7% KrW Billion 2 One-time fee 175 WM fees (Recurring) One-time fee portion (RHS) % % % % % % % -. -5% Dom Over Glb Hyb Bond MMFREITs Ave Eq. Eq. Eq. (Inde)(Chi) (Insi) Note 3: Weighted average Source: KOFIA, Industry weighted average Note 1: Mirae Asset Securities average 1) Balanced: Mirae Asset independence hanareum balanced 2) Bond: Mirae Asst Solomon government & public bond 1 3) MMF: Mirae Asset New MMF A-4 4) REITs: Mirae Asset Maps frontier real estate 4 Source: Company, Simple average Note 2: One-time: MF's upfront fee, structure product issuance fees Total WM fees: MF's recurring portion, WRAP, Bancassurance, trust t and etc. Source: Company 1% 75% 25

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