Col Financial Group, Inc. · PSE:COL
Col Financial — Q1 2022 Earnings Presentation
26 slides from Col Financial's earnings presentation, 2022
Slide 1: 1Q 2022 COL Investor Presentation
1Q 2022 COL Investor Presentation 1
Slide 2: Company Overview
Company Overview Established and The leading and fastest- licensed by the SEC in growing online stockbroker 1999 in the Philippines Focused on tapping Founder (Edward K. Lee) the underserved retail retains a 21.7% stake investor base in the and actively manages stock market the Company 2
Slide 3: Shares outstanding, free float and market cap
4.76 Bil 21.7 Outstanding Shares % Edward K. Lee Free Float 1.16 Bil 24.9% Market Cap* Php18.2 Bil Public *As of end March 2022 14.9% Daiwa Securities Group 24.9% Other Directors & Officer 13.9% Alexander C. Yu 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: COL Milestones
COL Milestones 1999 2000-2001 2006 2008 2010 Began operating the Listed in the PSE at Launched the COL Launched the full- Licensed by the SEC COL PH online Php0.136/sh service agency and Easy Investment to conduct business trading platform advisory team called Program (EIP) as a broker and the COL P
Slide 6: COL Milestones
COL Milestones 2012 2014 2015 2017 Officially changed Granted a Mutual Launched COL Fund Japan’s Daiwa corporate name to Fund Distributor Source - the first fund Securities Group, Inc. COL Financial License by the SEC supermarket in the acquired a 14.9% Group Inc. country stake in the company 6
Slide 7: The Biggest Philippine Based Stockbroker
The Biggest Philippine Based Stockbroker 1Q22 Rank Broker Name 1Q22 Value Turnover (Php Bil) % of Total 1 CLSA Philippines Inc 71.8 7.2 2 UBS Securities Philippines Inc 65.4 6.6 3 COL Financial Group, Inc 62.1 6.3 4 Mandarin Securities Corp 51.6 5.2 5 Macquarie Capital Securities (Phil) Inc 51.3 5.2
Slide 8: The Biggest Philippine Based Stockbroker
The Biggest Philippine Based Stockbroker Total Accounts (as of 2021) Total Online Accounts (as of 2021) 73% 27 % 58% 42% Others Others COL COL Source: PSE 8
Slide 9: Bulk of Revenues Generated from Commissions and Interest
Revenue Breakdown 2021 2.6% Trail Fees 0.1% Others Bulk of Revenues 22.6% Interest Generated from Commissions and Interest 74.6% Commissions accounted for 74.6% of revenues. Interest income from margin loans and cash Commissions placements accounted for 22.6% of revenues. Trailer fees from the distr
Slide 10: Key Operating Highlights
Key Operating Highlights Positives Negatives 1. Interest income stabilized and grew 1. Commission revenues and net y/y income fell sharply, as market conditions normalized 2. Trail fee remained stable and grew y/y 2. Rank and market share in the PSE slipped 3. Margin utilization rate increased 10
Slide 11: 1Q22 Net Income -74.9% Y/Y
Pro Forma Consolidated Income Statement (Php Mil) Change 1Q22 Net Income 1Q21 1Q22 Amount % Income -74.9% Y/Y Commissions 467.6 166.8 (300.8) -64.3% Interest 40.6 50.6 10.0 24.8% Trailer Fees 5.1 5.8 0.7 13.5% 1Q22 net income fell by 74.9% to Php91.8 Mil due Other income 50.6 0.3 (50.2) -99.4% to th
Slide 12: Commissions Normalized
Pro Forma Revenue Breakdown (Php Mil) Change Commissions Normalized 1Q21 1Q22 Amount % Revenue Breakdown Revenues fell by 60.4% due to the significant decline Commission 467.6 166.8 (300.8) -64.3% in commissions and the absence of other income. PH-Self-directed 441.3 136.8 (304.5) -69.0% PH- Agency
Slide 13: Commissions Normalized
Pro Forma Revenue Breakdown (Php Mil) Change Commissions Normalized 1Q21 1Q22 Amount % Revenue Breakdown On the positive side, interest income finally Commission 467.6 166.8 (300.8) -64.3% stabilized and increased by 24.8%. Interest income PH-Self-directed 441.3 136.8 (304.5) -69.0% from cash placem
Slide 14: Flattish Expenses
Pro Forma Breakdown of Expenses (Php Mil) Change 1Q21 1Q22 Amount % Flattish Expenses Trading Related Expenses Commission expenses 8.0 10.4 2.4 29.8% Agency & Advisory 7.5 10.3 2.8 37.4% Operating expenses were flat, as higher fixed CROs & Others 0.6 0.1 (0.4) -73.5% operating expenses were complete
Slide 15: ROAE Normalized to 17.1%
ROAE Normalized to 17.1% Selected Financial Ratios 1Q21 1Q22 ROAE normalized from 72.6% to 17.1%. Profitability deteriorated as commissions fell, Operating Profit Margin 81.9% 54.6% leading to weaker margins and lower asset turnover. EBITDA Margin 84.7% 60.8% Net Margin 64.8% 41.1% Margins dropped a
Slide 16: Now Number 3
Comparative Performance (COL vs. PSE) Change Now Number 3 1Q21 1Q22 Amount % PSE Ave. Daily T/O (PhpMil) 10,989.7 8,130.1 (2,859.6) -26.0% COL’s average daily turnover fell by 65.4% to Php1.0 Bil in 1Q22. Although the drop was COL Ave. Daily T/O (PhpMil) 2,946.5 1,018.02 (1,928.5) -65.4% much steepe
Slide 17: Strong Balance Sheet
Strong Balance Sheet Pro Forma Consolidated Balance Sheet (Php Mil) Change 12/31/21 3/31/22 Amount % Cash & cash equivalents decreased by 13.2% to Php1.5 Bil. This was largely due to the placement of more funds in investment securities to earn higher Cash & cash equivalents 1,733.5 1,504.0 -229.4 -1
Slide 18: Customer Base Up Y/Y, Down Q/Q
Client Base +5.8% Customer Base Up Y/Y, Down Q/Q 489,154 486,004 459,521 437,048 COL’s client base grew by 5.8% Y/Y to 486,004 as of end March 2022. 332,098 Average monthly additions during the past 292,401 12 months reached 2,207. However, compared to end 2021, the number of clients fell slightly b
Slide 19: Client Equity Up on Higher Deposits and Asset Values
Client Equity (Php Mil) +6.5% Client Equity Up on Higher Deposits and 107,346 112,556 106,479 113,451 Asset Values 72,673 72,398 Client equity was up 6.5% Y/Y to Php113.5 Bil as of end March 2022. Client equity increased due to new deposits from clients and higher asset values. Net new cash inflows
Slide 20: Margin Loans Up
Ave Daily Margin Loans (Php Mil) +31.3% Margin Loans Up 808 719 Average daily margin loans increased by 31.3% to Php808 Mil Y/Y. 617 616 536 518 As of end March, the total number of approved margin accounts was 1,210, slightly lower compared to 1,248 during the same period last year. However, more c
Slide 21: MF Net Sales Up due to Feeder Funds
MF Net Sales (Php Mil) MF Net Sales Up due to 350.0 Feeder Funds 300.0 250.0 COL’s MF distribution business still generated net sales of Php65.3 Mil during 1Q22, almost the 200.0 same levels as 1Q21, due to the introduction of Feeder Funds. 150.0 100.0 Around Php37.5 Mil or 57.5% to total net sales
Slide 22: Average AUA Up
23 average AUA on a Y/Y basis. Trailer fees up due to increase in Average AUA Up 2Q15 19.1 3Q15 132.6 4Q15 319.7 1Q16 513.0 2Q16 753.6 3Q16 1,003.8 4Q16 1,174.0 Source: COL estimates 1Q17 1,328.4 2Q17 1,529.1 3Q17 1,766.5 4Q17 2,028.5 1Q18 2,238.8 2Q18 2,332.4 3Q18 2,435.6 4Q18 2,606.3 1Q19 2,769.0
Slide 23: Lower Percentage of Clients Owned MFs
24 10,000.0 20,000.0 30,000.0 40,000.0 50,000.0 60,000.0 70,000.0 0.0 3Q15 5,244 3.4% 4Q15 7,526 4.6% 1Q16 11,859 6.9% 2Q16 13,690 7.5% 3Q16 16,599 8.5% 4Q16 18,317 8.9% 1Q17 20,493 9.5% 2Q17 22,257 9.9% 3Q17 24,739 10.4% 4Q17 27,375 11.1% 1Q18 30,421 11.6% 2Q18 32,675 12.0% MF Investors 3Q18 34,847
Slide 24: But MF only Clients Continued to Grow
MF Only Clients . . . But MF only Clients 18,000 Continued to Grow 16,000 14,000 Although the number of clients who owned MFs 12,000 fell in general, the number of clients who only 10,000 owned MFs continued to increase. 8,000 As of end March, there were 15,651 clients who only owned MFs, up 16.0% Y
Slide 25: Growing Number, but Lower Percentage of Clients Own MFs
26 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
Slide 26: 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