Col Financial Group, Inc. · PSE:COL
Col Financial — Q1 2021 Earnings Presentation
25 slides from Col Financial's earnings presentation, 2021
Slide 1: COL Financial Investor Presentation
1021 y COL FINANCIAL INVESTOR / PRESENTATION
Slide 2: 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 21.7% stake and actively manages the Company 2
Slide 3: Shareholding structure and market cap
EDWARD K. LEE 21.7% DAIWA SECURITIES GROUP ALEXANDER C. YU 24.6% OTHER DIRECTORS & OFFICER PUBLIC 14.9% Outstanding 4.76 Bil Shares 25.0% 13.9% Free Float 1.17 Bil Market Cap* Php18.8Bil *AS OF END MARCH 2021 3
Slide 4: 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 4
Slide 5: The Biggest Philippine Based Stock Broker
The Biggest Philippine Based Stock Broker 1Q21 VALUE 1Q21 RANK BROKER NAME % OF TOTAL TURNOVER (PHPBIL) 1 COL Financial Group, Inc. 179.7 13.4% 2 BDO SECURITIES CORP. 116.1 8.7% 3 J.P. MORGAN SECURITIES PHILIPPINES, INC. 78.0 5.8% 4 CLSA PHILIPPINES, INC. 77.8 5.8% 5 FIRST METRO SEC. BRKGE. CORP. 63
Slide 6: The Biggest Philippine Based Stock Broker
The Biggest Philippine Based Stock Broker TOTAL ACCOUNTS (AS OF 2020) TOTAL ONLINE ACCOUNTS (AS OF 2020) COL Others COL Others 31% 47% 53% 69% SOURCE: PSE 6
Slide 7: Bulk of Revenues Generated from Commissions & Interest
REVENUE BREAKDOWN (1Q21) Bulk of Revenues 9.0% Others Generated from 0.9% Trailer Fees Commissions & Interest 7.2% Interest Commissions from both Philippines and HK account for 82.9% of revenues. Interest income from margin loans and cash placements account for 7.2% of revenues. 82.9% Commissions Tr
Slide 8: Key Operating Highlights
Key Operating Highlights Positives Negatives Record revenues and profits Interest income fell sharply Record market share in the PSE Client equity down Q/Q Now the country’s number one PSE trading volume is weakening stockbroker 8
Slide 9: 1Q21 Net Income +355.7% Y/Y
PRO FORMA CONSOLIDATED INCOME STATEMENT (IN PHP MIL) 1Q21 Net Income +355.7% Y/Y CHANGE 1Q20 1Q21 AMOUNT % Income 1Q21 net income more than quadrupled to a quarterly Commissions 115.6 467.6 352.0 304.6% record of Php365.3 Mil. Interest 79.8 40.6 (39.3) -49.2% Trailer Fees 4.0 5.1 1.1 27.0% Pro forma
Slide 10: Higher Commissions & Other Income
PRO FORMA REVENUE BREAKDOWN (IN PHPMIL) Higher Commissions & CHANGE 1Q20 1Q21 AMOUNT % Other Income Revenue Breakdown Commission 115.6 467.6 352.0 304.6% PH-Self-directed 94.3 441.3 346.9 367.8% PH- Agency & advisory 18.7 23.6 4.8 25.7% Revenues jumped by 184.7% led by the significant increase in HK
Slide 11: Higher Commissions & Other Income
PRO FORMA REVENUE BREAKDOWN (IN PHPMIL) Higher Commissions & CHANGE 1Q20 1Q21 AMOUNT % Other Income Revenue Breakdown Commission 115.6 467.6 352.0 304.6% PH-Self-directed 94.3 441.3 346.9 367.8% PH- Agency & advisory 18.7 23.6 4.8 25.7% Self-directed clients accounted for the lion’s share of total H
Slide 12: Flattish Fixed Expenses
Flattish Fixed Expenses PRO FORMA BREAKDOWN OF EXPENSES (IN PHPMIL) CHANGE 1Q20 1Q21 AMOUNT % Operating expenses increased by 12.1%, largely driven by Trading Related Expenses the 118.4% jump in trading related expenses. Commission expenses 5.6 8.0 2.5 44.4% Agency & advisory 5.0 7.5 2.4 48.4% CROs
Slide 13: Market Share Reaches New Record High
Market Share Reaches COMPARATIVE PERFORMANCE (COL VS. PSE) New Record High CHANGE 1Q20 1Q21 AMOUNT % COL’s average daily turnover increased by 311.2% Y/Y to PSE Ave. Daily T/O (PhpMil) 6,676.6 10,989.7 4,313.2 64.6% Php2.9 Bil in 1Q21, outpacing the 64.6% growth in the PSE’s average daily turnover.
Slide 14: Market Share at New Record High
4.6% 9.3% 3.6% 7.8% 3.3% 6.9% 2.6% 5.6% SOURCE: PSE, COL ESTIMATES 3.3% 7.5% 4.6% 8.8% 4.1% 8.6% 4.1% 7.8% 4.3% 8.4% 3.3% 7.2% 4.1% 7.8% 3.9% 7.3% 5.2% 10.8% 6.0% 12.8% 6.0% 12.5% 4.8% 11.3% COL Market Share (Total) 5.8% 12.7% 6.2% 12.3% 6.4% 13.3% 6.8% 14.1% COL Market Share (Value T/O) 9.2% 17.7%
Slide 15: But Market Volume Weakening
PSE AVE DAILY VALUE T/O (PHP MIL) But Market Volume 14,000 12,658 12,346 Weakening. . . 12,000 11,042 9,882 10,000 9,452 The PSE’s average daily value turnover fell to only 8,065 8,184 8,508 Php5.9 Bil in April and is even lower in May. 8,000 5,895 On the positive side, COL’s average daily value 6,0
Slide 16: Strong Balance Sheet
Strong Balance Sheet PRO FORMA CONSOLIDATED BALANCE SHEET (IN PHPMIL) CHANGE 12/31/20 3/31/21 AMOUNT % Cash & cash equivalents decreased by 8.9% to Php5.3 Bil largely due to placement of more cash in investment securities to earn Cash & equivalents 5,782.4 5,268.8 (513.6) -8.9% higher yields. Note t
Slide 17: Significant Customer Growth
CLIENT BASE +34.5% 459,521 437,048 500,000 Significant Customer Growth 450,000 341,703 332,098 400,000 292,401 COL’s client base grew by 34.5% Y/Y to 459,521 as of 350,000 247,609 end March 2021. 300,000 Average monthly additions during the past 12 250,000 months reached 9,818. 200,000 150,000 100,0
Slide 18: Client Equity up on Higher Deposits, and Better Market Conditions
CLIENT EQUITY (PHP MIL) +90.4% Client Equity up on Higher 107,346 106,479 120,000 Deposits, and Better Market Conditions 100,000 73,102 72,673 72,398 80,000 Client equity was up 90.4% Y/Y to Php106.5 Bil as of end March 2021. 55,910 60,000 Net new cash inflows from retail clients reached Php22.8 Bil
Slide 19: Margin Loans Up
AVE DAILY MARGIN LOANS (PHP MIL) +18.9% Margin Loans Up 900 822 800 Average daily margin loans increased by 18.9% to 700 617 616 Php616 Mil Y/Y. 536 600 518 518 As of end March 2021, the total number of approved 500 margin accounts was 1,248, higher by 15.1% compared to 1,084 as of end March 2020. 4
Slide 20: COL Accounts for a Sizeable Portion of Industry Equity Fund Sales
COL Accounts for a Sizeable Portion of Industry Equity Fund Sales 1Q21 NET SALES (IN PHPMIL, ACC TO TYPE OF FUND) TYPE OF FUND INDUSTRY* COL Money Market 13,956.2 7.7 Bond Fund 894.5 -4.7 Balanced Fund 10.0 6.3 Equity Fund 2,023.4 57.1 Total 16,884.1 66.4 *FUNDS AVAILABLE IN COL FUND SOURCE ONLY 20
Slide 21: COL Accounts for a Sizeable Portion of Some Fund Houses' Net Sales
COL Accounts for a Sizeable Portion of Some Fund Houses’ Net Sales 1Q21 NET SALES (IN PHPMIL, ACC TO FUND HOUSE) TYPE OF FUND TOTAL* COL % SHARE ALFM 2,642.8 -18.3 -0.7% ATR -294.4 7.6 -2.6% FAMI 489.6 0.5 0.1% Phil Equity 46.3 37.8 81.5% PAMI 1,353.7 0.0 0.0% SLAMCI 10,301.9 38.9 0.4% Total 14,539.
Slide 22: Average AUA Up
AVERAGE AUA (NON-MONEY MARKET FUNDS ONLY, IN PHP MIL) 3,483.6 4,000.0 3,274.6 3,500.0 2,949.2 2,911.4 2,905.8 2,879.3 2,769.0 2,630.3 2,606.3 2,568.2 3,000.0 2,435.6 2,332.4 2,238.8 Average AUA Up 2,028.5 2,500.0 1,766.5 1,529.1 2,000.0 1,328.4 1,174.0 1,003.8 1,500.0 Trailer fees up due to increase
Slide 23: Growing Number, but Lower Percentage of Clients Own MFs
10,000.0 20,000.0 30,000.0 40,000.0 50,000.0 60,000.0 70,000.0 0.0 SOURCE: COL ESTIMATES 5,244 3.4% 7,526 4.6% 11,859 6.9% 13,690 7.5% 16,599 8.5% 18,317 8.9% 20,493 9.5% 22,257 9.9% 24,739 10.4% 27,375 11.1% MF Investors 30,421 11.6% 32,675 12.0% 34,847 12.3% 36,349 12.4% 38,069 12.5% % of Total Cl
Slide 24: ft wvicher life
© COL FINANCIAL ft wvicher life
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