Col Financial Group, Inc. · PSE:COL
Col Financial — Q1 2015 Earnings Presentation
25 slides from Col Financial's earnings presentation, 2015
Slide 1: 1Q15 Earnings Presentation
1Q15 EARNINGS & PRESENTATION [een Dentist COL FINANCIAL WAS BUILT ON THE FOUNDATION THAT EVERY FILIPINO DESERVES TO BE RICH.” ~ EDWARD K LEE, CHAIRMAN & FOUNDER Future Retiree Invest and Build Genuine wealth Rose Fres Fausto, Author and Columnist with her sons Martin with the 22, Enrique 19, and Ant
Slide 2: Investor Presentation Highlights: Company Overview
Investor Presentation Highlights COMPANY FINANCIAL & OPERATING GROWTH OVERVIEW HIGHLIGHTS 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 20.2% stake and actively manages the Company 3
Slide 4: Ownership Structure
Ownership Structure 39.0% 20.2% EDWARD K. LEE ALEXANDER L. YU OTHER DIRECTORS & OFFICER PUBLIC 13.6% OUTSTANDING SHARES 474.5Mil FREE FLOAT 185.2Mil MARKET CAP* Php7.8Bil *AS OF END MARCH 2015 27.2% 4
Slide 5: Champion of the Filipino Investor
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 the Champion of the Filipino Investor 5
Slide 6: Leading and Fastest Growing Online Stockbroker in the Philippines
Leading and Fastest Growing Online Stockbroker in the Philippines In Terms of Numbers of Accounts. . . 2013 Total Accounts % of Total Broker Name % Change Rank 2012 2013 Accounts Online 1 COL Financial 46,444 83,540 79.9% 64.6% 2 BPI Securities 19,721 25,775 30.7% 19.9% 3 First Metro 6,638 9,995 50.
Slide 7: In Terms of Value and Volume of Transactions
. . .And in Terms of Value and Volume of Transactions Rank Value TO (PhpBil) % of No. of Trades (’000) No. of Online Value No. of Broker Name % % Online 2012 2013 Value 2012 2013 TO Trades Change Change Transactions TO 1 1 COL Financial 150.4 182.9 21.7% 75.4% 2,664.5 3,262.0 22.4% 78.8% 2 2 BPI Sec
Slide 8: Also Amongst the Biggest Philippine-Based Brokers
Also Amongst the Biggest Philippine-Based Brokers 1Q15 Value 1Q15 % of Broker Name Turnover Rank Total (PhpBil) 1 UBS Securities Philippines Inc. 138.36 10.78 2 Deutsche Regis Partners Inc. 124.79 9.72 3 CLSA Philippines, Inc. 102.37 7.98 4 Macquarie Capital Securities (Phil), Inc. 78.63 6.13 5 Phil
Slide 9: Corporate Milestones
AUGUST Became licensed by the SEC to conduct business as a broker and of securities in the Philippines MARCH The COL PH online trading platform became operational APRIL CitisecOnline HK Ltd. (COL HK) became a trading participant of the IK Exchange MAY The COL HK latform was jaunched Corporate Milest
Slide 10: Bulk of Revenues Generated From Philippine Operations
Bulk of Revenues Generated From Philippine Operations REVENUE BREAKDOWN 100% 0.8% OTHERS COL’s Philippine operations account 90% for 97.5% of revenues, while its HK 26.9% INTEREST operations account for the balance. 80% 70% 2.4% HK COM Commissions from both Philippines and HK account for 72.3% of re
Slide 11: Investor Presentation Highlights: Financial & Operating Highlights
Investor Presentation Highlights COMPANY FINANCIAL & OPERATING GROWTH OVERVIEW HIGHLIGHTS PLANS 11
Slide 12: Key Highlights
Key Highlights POSITIVE NEGATIVE • Strong revenue and earnings • HK operations remained growth weak • Results outperformed the PSE • Client equity fell due to net • Balance sheet remained outflow by an institutional healthy client • Strong growth in new accounts • Market share increased while market
Slide 13: 1Q15 Net Income Almost Doubled
CONSOLIDATED INCOME STATEMENT (IN PHP MIL) 1Q15 Net Income Change Almost Doubled 1Q14 1Q15 Amount % Income 1Q15 net income improved significantly by Commissions 93.1 154.6 61.5 66.1% 82.3% to Php107.3 Mil. Interest 48.4 57.5 9.1 18.9% Consolidated revenues increased by Other income 2.4 1.6 (0.7) -31
Slide 14: Philippines Continued to be the Main Growth Driver
REVENUE BREAKDOWN (IN PHP MIL) Philippines Continued to be 1Q14 1Q15 Change the Main Growth Driver Amount % Philippines Commission 82.0 149.4 67.5 82.4% Revenues increased due to the strength Self-directed 47.4 95.9 48.5 102.2% of Philippine operations. Agency & advisory 34.5 53.6 19.0 55.1% Philipp
Slide 15: ROAE Increased Significantly
ROAE Increased Significantly SELECTED FINANCIAL INDICATORS Change 1Q14 1Q15 Amount % Operating profits rose by 76.1% Y/Y to Operating Profits Php132.9 Mil, largely driven by the 85.0% increase in operating profits from Philippines 72.4 134.0 61.6 85.0% Philippine operations. Hong Kong 3.0 -1.1 (4.1)
Slide 16: Strong and Highly Liquid Balance Sheet
Strong and Highly Liquid Balance Sheet CONSOLIDATED BALANCE SHEET (IN PHP MIL) COL remained cash rich and debt free. Change 12/31/14 03/31/15 Total assets grew by 14.0% to Php7.2 Bil Amount % largely driven by the 6.0% increase in cash. Cash & equivalents 4,794.3 5,080.5 286.2 6.0% Receivables 1,438
Slide 17: Sustained Customer Growth
Sustained Customer Growth CLIENT BASE +41.9% COL’s client base grew by 41.9% Y/Y 126,396 to 126,396 as of end March 2015. 112,827 140,000 120,000 Average monthly additions 89,093 82,476 100,000 remained strong at 4,523. 80,000 46,166 60,000 28,067 15,345 40,000 8,716 20,000 - 2009 2010 2011 2012 201
Slide 18: Hurt by Net Outflow of Institutional Client
Hurt by Net Outflow of Institutional Client CLIENT EQUITY - 8.4% Client equity fell by 8.4% Y/Y to 56,702 Php47.3 Bil due to the Php12.4 Bil 51,670 60,000 outflow by an institutional client. 47,942 47,325 50,000 Excluding the said transaction, net new flow of clients remained positive 34,359 40,000
Slide 19: Margin Loans Flat
Margin Loans Flat AVE DAILY -0.7% MARGIN LOANS Average daily margin loans were 1,296 1,287 flat at Php1.3 Bil. 1,231 1,400 1,220 1,102 1,200 As of end 1Q15, the total number of approved margin accounts 952 1,000 reached 1,119, up 6.4% Y/Y. 800 Meanwhile, 32.6% of approved margin accounts utilized th
Slide 20: Gaining Market Share
Gaining Market Share COMPARATIVE PERFORMANCE (COL VS. PSE) COL’s 1Q15 average daily turnover Change rose 91.5% Y/Y to Php930.5 Mil, 1Q14 1Q15 outpacing the 47.5% improvement in Amount % the PSE’s average daily turnover. PSE Ave. Daily T/O 7,372.4 10,874.5 3,502.1 47.5% (PhpMil) Consequently, COL’s m
Slide 21: Investor Presentation Highlights: Growth Plans
Investor Presentation Highlights COMPANY FINANCIAL & OPERATING GROWTH OVERVIEW HIGHLIGHTS PLANS 21
Slide 22: Pro Active Growth Plans
Pro Active Growth Plans Maintain leadership by focusing on our consistent, long-term strategic goals Priorities Statement Strategies #1. Continue to be the leading • Set up more investor centers Expand Client asset gatherer in the brokerage • Enter into tie-ups to expand Acquisition industry market
Slide 23: Updates on Growth Plans
Updates on Growth Plans DISTRIBUTION OF THIRD PARTY FUNDS • COL will soon be able to offer various types of professionally managed funds through its platform • At present, COL has signed MOAs with six mutual fund companies which together account for 92.1% of the AUM of the mutual fund industry • The
Slide 24: Thank You
Thank You COL FINANCIAL
Slide 25: 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