Investor Presentation Q3 FY2006

Transcription

1 Investor Presentation Q3 FY2006 1

2 DISCLAIMER This presentation contains forward-looking statements about Mirae Asset Securities and unaudited preliminary figures internally collected as of December 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.

3 CONTENTS Market Environment Financial Highlights Performance Review - Asset Management - Brokerage - Investment Banking - Appendix

4 Market Environment

5 Equity Market The KOSPI and KOSDAQ market modestly recovered in Q3 FY2006 along with stabilizing daily average trading value since its dramatic fall at FY 2005 end Daily Average Trading Value KOSPI / KOSDAQ Index (KrW billion) 8,000 7,694 7,000 6,000 5,000 4,383 4,651 4,213 4,000 3,000 2,872 2,283 2,322 2,000 1, Source: KRX (KrW billon) 1, KOSPI (LHS) 727 1,434 1,400 KOSDAQ (RHS) 1,306 1, , , Source: KRX 5

6 Indirect Investment Market The market s total fund balance stands at KrW 235 trillion rising 5.4% since the end of FY2005. MAS total fund balance rose 26.9% to KrW 9.9 trillion. The equity fund market grew to KrW 47 trillion rising 34.3% since the end of FY2005 while equity-type balance for MAS rose 38.6% to KrW 5.3 trillion for the same period Market Total Fund Market Total Equity Fund (KrW trillion) (KrW trillion) Source: AMAK (Asset Management Association of Korea) Source: AMAK 6

7 Financial Highlights

8 Net Revenue Breakdown MAS continuously maintains advanced and balanced revenue structure with comparatively high revenue proportion from asset management and a solid track record from investment banking Asset Management - Beneficiary certificates - Wrap account - Bancassurance 23% 28% 33% Brokerage 39% 26% 25% Investment Banking - Underwriting & IPO - Prop. trading - Fixed income securities - Principal Investment 22% 31% 27% Interest Profit & Other 16% FY % Q2 FY % Q3 FY2006 Source: MAS (Net Revenue = Operating Income Operating Expenses excl. G&A expenses) 8

9 Financial Highlights Due to strong rebounding sales of beneficiary certificates in Q3 FY 2006, MAS achieved KrW 442 billion in operating income and KrW 82 billion in net income for Q1~Q3 FY 2006 Operating Income Net Income [KrW million] [KrW million] CAGR ( 00 ~ 05) CAGR ( 00 ~ 05) 33.3% 40.4% 432, ,028 91,517 81, , , , , ,842 16,774 13,670 17,409 43,662 31,261 FY2000 FY2002 FY2004 Q1~Q3 FY2006 Source: MAS FY2000 FY2001 FY2002 FY2003 FY2004 FY2005 Q1~Q3 FY2006 Source: MAS 9

10 Financial Highlights Income & G&A [KrW million] Items Q3 FY2006 Q2 FY2006 QoQ Operating Income 186, , % Operating Expenses 143,038 83, % A. Other Operating Expenses 101,621 41, % B. G&A Expenses 41,417 41, % Net Revenue (Operating Profit + G&A Expenses) 84,609 78, % Operating Profit 43,192 37, % Non-operating Profit 1, % Non-operating Expenses % Ordinary Profit 43,873 36, % Net Income (After Tax) 32,085 26, % G & A Expense Details Q3 FY2006 Q2 FY2006 Amount Portion Amount Portion G &A 41, % 41, % Salary & Compensation 23, % 23, % Depreciation 1, % 1, % Rental Expenses 1, % 1, % IT Cost 1, % 1, % Misc. Commissions 1, % 1, % Advertising Expenses 4, % 6, % Others 6, % 5, % Source: MAS 10

11 Financial Highlights Income Statement [KrW million] Items Q3 FY2006 Q2 FY2006 Q1 FY2006 FY2005 FY2004 FY2003 Operating Income 186, , , , , ,905 A. Commissions Received 63,916 59,564 62, , , ,033 1) Brokerage commission 27,152 25,811 31, ,433 74,497 77,945 2) Underwriting commission 760 4, ,702 5,094 5,845 3) Brokerage Commission on beneficiary certificates 23,673 17,217 22,431 56,883 12,221 9,622 4) Commission from Wrap account & asset management 1,955 1,857 1,956 5,143 1, ) Others 10,376 14,145 6,512 19,915 12,633 11,271 B. Interest Income 18,835 15,754 12,035 48,796 19,184 21,844 C. Dividends Income D. Distribution Income E. Gain on Sales of Trading Securities 8,540 9,147 14,261 45,806 36,088 23,347 F. Gain on Valuation of Trading Securities 7,251 (83) 2,141 1,422 1, G. Gain on Valuation of Deposits 5,622 5,647 6,077 18,384 12,705 14,479 H. Gain on Derivatives Transactions 14,548 14,985 20,492 83,180 96, ,836 I. Others 67,482 17,935 14, Operating Expenses 143,038 86, , , , ,885 A. Other Operating Expenses 101,621 44,302 59, , , ,199 B. G&A Expenses 41,417 41,756 40, ,381 99, ,686 Net Revenue (Operating Profit + G&A Expenses) 84,609 78,760 73, , , ,706 Operating Profit 43,192 37,004 32, ,546 52,488 64,020 Net Profit (Before Tax) 43,873 36,634 32, ,349 46,570 63,261 Net Income (After Tax) 32,085 26,569 23,343 91,527 31,261 43,662 11

12 Financial Highlights Balance Sheet [KrW million] Items Q3 FY2006 Q2 FY2006 Q1 FY2006 FY2005 FY2004 FY2003 Total Assets 3,309,592 2,749,859 2,476,218 1,509, , ,979 Ⅰ. Current Assets 3,138,736 2,588,435 2,315,391 1,373, , ,121 Ⅱ. Fixed Assets 170, , , , , ,858 Total Liabilities 2,724,926 2,196,809 1,949, , , ,301 Ⅰ. Current Liabilities 2,722,839 2,195,418 1,947, , , ,623 Ⅱ. Long-term Liabilities 2,087 1,391 1,753 1, Total Shareholder's Equity 584, , , , , ,678 I. Stockholder's Equity 134, , , , , ,800 II. Capital Surplus 213, , , ,032 35,721 35,721 III. Retained Earnings 237, , , ,539 98,908 76,685 IⅤ. Capital Adjustment (810) (511) (197) (81) (1,887) (1,528) Total Liabilities & Stockholder's Equity 3,309,592 2,749,859 2,476,217 1,509, , ,979 12

13 Performance Review

14 Asset Management Market Share MAS fund market M/S continuously increased for the quarter recording M/S of 4.2%, an 0.3% increase QoQ Quarter-end Balance of Fund Sales [KrW billion] Fund sales M/S (RHS) Fund balance (LHS) 9,914 10,000 8,659 9,000 8,312 7,811 8,000 6,565 7,000 5,923 6,000 5,430 5,000 4,000 3,000 2,000 1, M/S 5.0% 4.5% 4.0% 3.5% 3.0% 2.5% 2.0% Source: Company data, AMAK 14

15 Asset Management Fund sales by type Equity-type fund which is a main source of profit for MAS recorded KrW 5.3 trillion for the quarter [KrW billion] Others MMF Hybrid Bond-type Domestic equity-type Overseas equity-type 9,914 8,659 8,312 7,811 2,179 6,565 1,138 1, ,923 1, ,115 5,430 1,029 1, , , ,038 1, , ,223 1,096 1,043 2,984 3,119 1,170 2,799 1,065 2,048 1,538 1, ,022 1,406 1,558 2, % 4% 11% 9% 33% 21% Equity-type Proportion 25% 33% 39% 49% 53% 54% 54% Source: MAS 15

16 Asset Management Installment type fund As end of November, number of market installment type account stands at 7.4 million accounts and MAS M/S increased 0.2% QoQ to 3.3% Installment-type Fund Accounts M/S (Unit: No. of million account) Market (LHS) MAS M/S (RHS) M/S 4.0% 3.5% 3.0% % Source: AMAK 16

17 Brokerage - Equity Equity brokerage M/S maintained 7.2% along with commissions generated from institutions declining slightly Equity Brokerage M/S Brokerage Breakdown 9% 8% 7% 6% Offline (Ins.) Offline (Retail) Online (Retail) 20% 18% 2% 2% 78% 80% 45% 44% 10% 11% 5% % 45% 4% Q1 FY04 Q3 FY04 Q1 FY05 Q3 FY05 Q1 FY06 Q3 FY06 Q2 FY06 Q3 FY06 Q2 FY06 Q3 FY06 Trading Value Commissions Source: MAS Source: MAS 17

18 Investment Banking MAS continues to focus on strengthening IB competency and successfully raised PI biz in Q3 Q3 FY2006 Performance IPO Performance Net Revenue Breakdown (In 100 million KrW) (KrW billion) Q3 FY06 Q2 FY06 Investment Banking 6 25% 11 61% IPO, Underwriting, ABS, M&A Fixed Income Securities 7 29% 3 17% Dealing 3 13% 4 22% Futures & Option dealing Principle IB 8 33% TOTAL % % Year No. of IPOs Pyungsan & other 1 Dom & other 7 Core Logic & other 5 Amt 733 1, Giga Telecom & other 9 1, Korea Ratings & other Source: MAS Source: S-IPO 18

19 Appendix

20 Mirae Asset Group - AUM Mirae Asset Group continues to lead the indirect investment market with M/S of 9.4% (32.7% M/S for equity-type fund) Total Fund Market vs. MAG Total Equity Fund Market vs. MAG [KrW billion] [KrW billion] 250, ,000 Total Market (LHS) 22,109 MAG (RHS) 20,172 18,927 17,288 25,000 20,000 50,000 40,000 Total Equity-type (LHS) MAG (RHS) 15,202 14,278 13,200 11,885 17,500 15,000 12, , ,000 8,8288,775 9,955 12,133 15,000 10,000 5,000 30,000 20,000 10,000 2,841 2,109 4,299 6,602 10,000 7,500 5,000 2, , Source: AMAK 20

21 Mirae Asset Group - Positioning Within in the Mirae Asset Group, Mirae Asset Securities is at the core of the group s sales and distribution channel well positioned to benefit from the group s asset management arm Financial Group Mirae Asset Investment Management Mirae Asset Global Invest. Mgmt. (Asia) (Singapore) Mirae Asset Maps Invest. Mgmt. Mirae Asset Global Invest. Management (Hong Kong) Asset Management Arm Investment Arm Mirae Asset Securities Mirae Asset Life Insurance Mirae Asset Capital Mirae Asset Venture Investment 21

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