Col Financial Group, Inc. · PSE:COL
Col Financial — 9M2018 Earnings Presentation
29 slides from Col Financial's earnings presentation, Dec 5, 2018
Slide 1: COL 9M18 Investor Presentation
COL 9M18 INVESTOR PRESENTATION
Slide 2: Highlights
Highlights Company Overview Financial & Operating Highlights Growth Plans 2
Slide 3: Company Overview
Company Overview Established and licensed by the SEC in 1999 The leading and fastest-growing online stockbroker in the Philippines Focused on tapping the underserved retail investor base in the stock market Founder (Edward K. Lee) retains a 20.9% stake and actively manages the Company
Slide 4: Ownership Structure
Ownership Structure OUTSTANDING SHARES 476.0Mil 26.5% 20.9% FREE FLOAT 126.4Mil MARKET CAP* Php7.7Bil *AS OF END SEPTEMBER 2018 EDWARD K. LEE DAIWA SECURITIES GROUP ALEXANDER C. YU OTHER DIRECTORS & OFFICER 14.9% PUBLIC 24.2% 13.5% 4
Slide 5: Business Objective
Business Objective To be the preferred source of financial services, a trusted provider of guidance and investment and a strong organization committed to delivering great value to its customers. Our goal is to be Champion of the Filipino Investor 5
Slide 6: The Biggest Philippine Based Broker
The Biggest Philippine Based Broker 9M18 9M18 Value % of Broker Name Rank Turnover (PhpBil) Total 1 CLSA Philippines, Inc.. 202.5 7.9% 2 COL Financial Group, Inc. 201.8 7.9% 3 UBS Securities Philippines Inc. 188.8 7.4% 4 Credit Suisse Securities (Phil), Inc. 170.8 6.7% 5 Deutsche Regis Partners Inc.
Slide 7: Bulk of Revenues Generated From Philippine Operations
Bulk of Revenues Generated From Philippine Operations REVENUE BREAKDOWN 100.0% 1.7% OTHERS 90.0% 1.2% TRAILER FEES COL’s Philippine operations account for 80.0% 98.4% of revenues. 33.7% INTEREST 70.0% Commissions from both Philippines and HK account for 63.3% of revenues. 60.0% 1.6% HK COM 11.2% PH
Slide 8: Highlights
Highlights Company Overview Financial & Operating Highlights Growth Plans 9
Slide 9: Key Highlights
Key Highlights Positives Negatives • 9M18 net income +32.7%, already above 2017 full year profits • Total assets down YTD • Margin lending business • Sustained growth in new accounts weakened and positive net new flows • Higher operating profit margin as revenue share of self-directed clients increa
Slide 10: 9M18 Net Income
CONSOLIDATED INCOME STATEMENT (IN PHP MIL) 9M18 Net Income 9M17 9M18 Amount Change % +32.7% Income Commissions 506.1 551.6 45.4 9.0% Interest 178.0 293.6 115.6 65.0% 9M18 net income increased by 32.7% to Trailer Fees 7.4 10.8 3.4 46.6% Php450.8 Mil. Other income 19.2 14.8 (4.5) -23.2% Total 710.7 87
Slide 11: Total Expenses
Total Expenses BREAKDOWN OF EXPENSES (IN PHP MIL) +5.4% Change 9M17 9M18 Amount % Total expenses increased by 5.4% to Php285.3 Mil. Trading Related Expenses Commission expenses 70.0 47.7 -22.3 -31.9% Trading related expenses were down 27.0% to Stock exch. dues & fees 21.3 19.0 -2.3 -10.8% Php66.7 Mi
Slide 12: Philippines & HK Enjoy Strong Revenue Growth
Philippines & HK REVENUE BREAKDOWN (IN PHP MIL) Enjoy Strong 9M17 9M18 Change Amount % Revenue Growth Philippines Commission 495.5 537.4 42.0 8.5% Interest 178.0 293.6 115.6 65.0% Revenues from Philippine operations were up 22.4% as commission, interest income Trailer Fees 7.4 10.8 3.4 46.6% and tra
Slide 13: Philippines & HK Enjoy Strong Revenue Growth
Philippines & HK REVENUE BREAKDOWN (IN PHP MIL) Enjoy Strong 9M17 9M18 Change Amount % Revenue Growth Philippines Commission 495.5 537.4 42.0 8.5% Interest 178.0 293.6 115.6 65.0% The strong growth in interest income from cash placements more than offset the drop in Trailer Fees 7.4 10.8 3.4 46.6% i
Slide 14: COL Outperforms the Market
COL Outperforms the Market COL’s average daily turnover rose 9.9% Y/Y COMPARATIVE PERFORMANCE (COL VS. PSE) to Php1.1 Bil in 9M18, significantly outpacing the 14.6% drop in the PSE’s average daily Change turnover. 9M17 9M18 Amount % PSE Ave. Daily T/O 8,170.0 6,976.7 (1,193.3) -14.6% Consequently, C
Slide 15: ROAE Improved to 38.2%
ROAE Improved to 38.2% SELECTED FINANCIAL INDICATORS Change 9M17 9M18 Amount % 9M18 operating profits increased by 33.1% Operating Profits to Php585.5 Mil driven by the strength Philippines 450.3 593.1 142.8 31.7% Philippine operations and narrower losses in HK. Hong Kong (10.3) (7.6) 2.6 -25.8% Tot
Slide 16: Asset Base Contracts due to Poor Market Conditions
Asset Base Contracts due to Poor Market CONSOLIDATED BALANCE SHEET (IN PHP MIL) Conditions Change 12/31/17 9/30/18 Amount % Total assets fell by 11.3% to Php10.5 Bil as cash & cash equivalents and receivables fell Cash & equivalents 10,104.9 9,104.5 (1,000.5) -9.9% for the year to date period. Recei
Slide 17: Asset Base Contracts due to Poor Market Conditions
Asset Base Contracts due to Poor Market CONSOLIDATED BALANCE SHEET (IN PHP MIL) Conditions Change 12/31/17 9/30/18 Amount % Receivables fell by 40.0% to Php702.4 Mil largely due to the decline in receivables from Cash & equivalents 10,104.9 9,104.5 (1,000.5) -9.9% clearing houses. Receivables 1,169.
Slide 18: Sustained Customer Growth
Sustained Customer Growth +19.5% CLIENT BASE 282,849 COL’s client base grew by 19.5% Y/Y to 247,609 236,753 300,000 282,849 as of end September 2018. 205,039 250,000 Average monthly additions remained 162,330 strong at 3,841. 200,000 112,827 150,000 82,476 100,000 50,000 - 2013 2014 2015 2016 2017 9
Slide 19: Flattish Client Equity Despite Poor Market Conditions
Flattish Client Equity Despite Poor Market Conditions CLIENT EQUITY (Php Mil) + 0.4% 73,102 71,017 71,328 80,000 Client equity was flat at Php71.3 Bil as 59,290 70,000 Retail Insitutional of end September 2018 despite poor 60,000 market conditions due to strong net new 46,894 flows. 43,290 50,000 Ne
Slide 20: Margin Loans Fall
Margin Loans Fall -35.0% AVE DAILY MARGIN LOANS (Php Mil) 1,400 1,231 1,220 Average daily margin loans fell by 35.0% to Php543 Mil Y/Y. 1,200 971 As of end September, the total number 1,000 of approved margin accounts reached 835 822 1,151, down 1.9% Y/Y. 800 29.6% of approved margin accounts 596 54
Slide 21: Highlights
Highlights Company Overview Financial & Operating Highlights Growth Plans 22
Slide 22: Pro Active Growth Plans
Pro Active Growth Plans Maintain leadership by focusing on our consistent, long-term strategic goals Priorities Statement Strategies Expand Client #1. Continue to be the leading asset • Set up more investor centers Acquisition gatherer in the brokerage industry • Enter into tie-ups to expand market
Slide 23: Update on Fund Distribution Business
Update on Fund Distribution Business NET SALES VS AUA (IN PHPMIL, ACC TO TYPE OF FUND) Type of Fund Total Sales** % Total Total AUA* % Total Money Market 175.4 6.3% 182.6 6.7% Bond Fund 148.1 5.3% 147.6 5.5% Balanced Fund 158.6 5.7% 150.9 5.6% Equity Fund 2,315.0 82.8% 2,225.9 82.2% Total 2,797.2 2,
Slide 24: Significant Share of Industry Equity Fund Sales
Significant Share of Industry Equity Fund Sales SHARE OF INDUSTRY EQUITY FUND SALES (PESO FUNDS ONLY) In 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 PhpMil COL 150.9 203.6 192.9 209.9 103.4 110.4 192.3 148.1 289.5 225.5 146.5 Industry 1,181.6 (2,350.1) (2,267.5) 3,125.6 124.9 (2,212.5) 73
Slide 25: Strong Growth in Average AUA
Strong Growth in Average AUA AVERAGE AUA (NON-MONEY MARKET FUNDS ONLY, IN PHP MIL) 2,435.6 3,000.0 Trailer fee up due to 2,332.4 2,238.8 significant growth in 2,028.5 2,500.0 average AUA on a year-on- 1,766.5 year basis. 1,529.1 2,000.0 1,328.4 1,174.0 1,003.8 1,500.0 753.6 1,000.0 513.0 319.7 500.0
Slide 26: Growing Number & Percentage of Clients Own MFs
Growing Number & Percentage of Clients Own MFs MF Investors % of Total Clients 40,000.0 14.0% 12.3% 35,000.0 11.6% 12.0% 11.1% 12.0% 10.4% 30,000.0 9.9% 9.5% 10.0% 8.9% 8.5% 25,000.0 7.5% 8.0% 6.9% 20,000.0 34,847 32,675 30,421 6.0% 27,375 15,000.0 4.6% 24,739 22,257 20,493 3.4% 18,317 4.0% 16,599 1
Slide 27: Expanding Reach Through Investor Centers
Expanding Reach Through Investor Centers 28
Slide 28: Thank You
Thank You 29
Slide 29: Disclaimer
Disclaimer This presentation was prepared solely and exclusively for discussion purposes. This presentation and/or any part thereof may not be reproduced, disclosed or used without the prior written consent of COL Financial (the “Company”). This presentation, as well as discussions arising therefrom