COL Financial Group, Inc. · PSE:COL
COL Financial — 9M 2016 Earnings Presentation
29 slides from COL Financial's earnings presentation, November 2016
Slide 1: COL 9M16 Earnings Presentation
COL 9M16 Earnings Presentation
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 20.7% stake and actively manages the Company 3
Slide 4: Ownership Structure
Ownership Structure 38.1% 20.7% EDWARD K. LEE ALEXANDER L. YU OTHER DIRECTORS & OFFICER PUBLIC 14.0% OUTSTANDING SHARES 476.0Mil FREE FLOAT 181.5Mil MARKET CAP* Php7.7Bil *AS OF END SEPT 2016 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. . . 2014 Total Accounts* % of Total Broker Name % Change Rank 2013 2014 Accounts Online 1 COL Financial 83,540 114,078 36.6% 65.3% 2 BPI Securities 25,775 33,769 31.0% 19.3% 3 First Metro 9,995 12,207
Slide 7: Also Amongst the Biggest Philippine-Based Brokers
Also Amongst the Biggest Philippine-Based Brokers 9M16 Value 9M16 % of Broker Name Turnover Rank Total (PhpBil) 1 UBS Securities Philippines Inc. 266.4 8.8% 2 Deutsche Regis Partners Inc. 262.0 8.7% 3 CLSA Philippines, Inc. 257.2 8.5% 4 Credit Suisse Securities (Phil), Inc. 201.6 6.7% 5 COL Financia
Slide 8: Corporate Milestones
Corporate Milestones SEC granted COL the Mutual Distributor License Partnered with ALFM, ATRAM, First Metro, Philamlife, Philequity and Sun Life Launched the COL Mobile App for the iOS platform Opened the Makati Investor Center () COL FINANCIAL * CO's IPO for PSE listing * Official change of corpora
Slide 9: Bulk of Revenues Generated From Philippine Operations
Bulk of Revenues Generated From Philippine Operations REVENUE BREAKDOWN 100% 0.5% OTHERS COL’s Philippine operations account 90% for 99.0% of revenues. 25.0% INTEREST 80% Commissions from both Philippines and 1.1% HK COM 70% HK account for 74.2% of revenues. 60% Interest income from margin loans and
Slide 10: Financial & Operating Highlights
Investor Presentation Highlights COMPANY FINANCIAL & OPERATING GROWTH OVERVIEW HIGHLIGHTS PLANS 10
Slide 11: Key Highlights
Key Highlights POSITIVE NEGATIVE • Philippine business (stock trading • HK business generated a & fund distribution) grew despite loss challenging environment • Margin lending down • Market share improved further, reaching a new record high • Interest income from cash placements continued to grow •
Slide 12: 9M16 Net Income +28.6%
CONSOLIDATED INCOME STATEMENT (IN PHP MIL) 9M16 Net Income +28.6% 9M15 9M16 Change Amount % Income Commissions 391.1 490.8 99.7 25.5% 9M16 net income increased by 28.6% to Interest 177.6 164.5 (13.1) -7.4% Php316.9 Mil. Excluding one-off tax expenses booked in 9M15, recurring profits Other income 15
Slide 13: Total Expenses Down 2.8%
Total Expenses Down 2.8% BREAKDOWN OF EXPENSES (IN PHP MIL) Change Total expenses fell by 2.8%. 9M15 9M16 Amount % Trading Related Expenses The drop was largely due to the non- booking of one-off tax expenses worth Commission expenses 67.8 75.4 7.6 11.2% Php23.7 Mil. Excluding the said expense, Stoc
Slide 14: 3Q16 Net Income Reaches New Record High
CONSOLIDATED INCOME STATEMENT (IN PHP MIL) 3Q16 Net Income Reaches Change New Record High 3Q15 3Q16 Amount % Income Commissions 120.3 197.6 77.3 64.3% 3Q16 net income more than doubled to Interest 57.4 59.6 2.2 3.8% Php133.6 Mil, reaching a new record high. The last record high was registered in 1Q1
Slide 15: Philippines Continues to Drive Growth
REVENUE BREAKDOWN (IN PHP MIL) Change Philippines Continues to 9M15 9M16 Amount % Drive Growth Philippines Commission 364.0 483.4 119.4 32.8% Revenues from Philippine operations were Self-directed 235.2 333.1 97.9 41.6% up by 17.0%, largely driven by the 32.8% Agency & advisory 128.8 150.3 21.5 16.7
Slide 16: Philippines Continues to Drive Growth
REVENUE BREAKDOWN (IN PHP MIL) Change Philippines Continues to 9M15 9M16 Amount % Drive Growth Philippines Commission 364.0 483.4 119.4 32.8% Other income dropped due to the Self-directed 235.2 333.1 97.9 41.6% absence of trading gains resulting from Agency & advisory 128.8 150.3 21.5 16.7% clients’
Slide 17: ROAE Improves to 31.1%
ROAE Improves to 31.1% SELECTED FINANCIAL INDICATORS Change 9M15 9M16 Amount % Operating profits grew 25.6% to Operating Profits Php409.8 Mil, largely driven by the strength of Philippine operations. Philippines 317.7 422.0 104.3 32.8% Hong Kong 8.5 (12.2) (20.7) -243.5% Operating profits from the P
Slide 18: 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 12/31/15 09/30/16 Amount % Total assets grew by 30.2% to Php10.4 Bil largely driven by the 29.4% increase in cash. Cash & equivalents 6,749.2 8,734.8 1,985.6 29.4% Receivables
Slide 19: Sustained Customer Growth
Sustained Customer Growth CLIENT BASE +28.2% 195,320 250,000 COL’s client base grew by 28.2% Y/Y 162,330 to 195,320 as of end September 152,409 200,000 2016. 112,827 150,000 Average monthly additions for YTD remained strong at 3,666. 82,476 100,000 46,166 28,067 50,000 - 2011 2012 2013 2014 2015 9M1
Slide 20: Healthy Retail Client Inflow
Healthy Retail Client Inflow CLIENT EQUITY + 31.9% 60,643 70,000 Retail 60,000 Client equity rose by 31.9% Y/Y and 46,894 45,972 Insitutional 29.3% YTD to Php60.6 Bil. 43,290 50,000 Net new cash flow from retail clients 32,051 40,000 amounted to Php4.9 Bil during 9M16. 25,650 30,000 16,447 15,891 13
Slide 21: Margin Loans Drop
Margin Loans Drop AVE DAILY -54.8% MARGIN LOANS Average daily margin loans were 1,231 1,400 down 43.6% at Php591 Mil Y/Y. 1,220 1,102 1,049 1,200 As of end September, the total number of approved margin 971 952 1,000 accounts reached 1,130, flattish on a Y/Y basis. 800 However, only 29.5% of approve
Slide 22: Market Share Reaches a New Record High
Market Share Reaches a New Record High COMPARATIVE PERFORMANCE (COL VS. PSE) COL’s average daily turnover rose 27.7% Y/Y to Php943.6 Mil during 9M16 Change 9M15 9M16 despite the 14.8% drop in the PSE’s Amount % average daily turnover. PSE Ave. Daily T/O 9,464.1 8,064.5 (1,399.6) -14.8% (PhpMil) Cons
Slide 23: Growth Plans
Investor Presentation Highlights COMPANY FINANCIAL & OPERATING GROWTH OVERVIEW HIGHLIGHTS PLANS 23
Slide 24: 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 25: Update on Fund Distribution Business
Update on Fund Distribution Business Net Sales (In PhpMil, According to Fund Type) Total Total Type of Fund 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 % Total % Total Sales AUA* Money Market 19.0 0.9 75.8 0.6 6.9 1.6 104.9 8.9% 97.5 8.0% Bond Fund 1.9 17.9 17.4 14.3 21.3 23.8 96.6 8.2% 97.0 8.0% Balanced Fund 3.
Slide 26: Update on Fund Distribution Business
Update on Fund Distribution Business Significant Share of Industry Equity Fund Sales (Peso Funds Only) 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 COL 30.9 156.2 154.8 150.9 203.6 192.9 Industry 4,024.5 1,735.0 1,645.4 1,181.6 (2,350.1) (2,267.5) % Share 0.8% 9.0% 9.4% 12.8% - - SOURCE: PIFA, COL Estimates 26
Slide 27: Update on Fund Distribution Business
Update on Fund Distribution Business MF Investors MF Investors % of Total Clients 18,000.0 9.0% 8.5% 16,000.0 8.0% 7.5% 14,000.0 6.9% 7.0% 12,000.0 6.0% 10,000.0 5.0% 4.6% 8,000.0 16,599 4.0% 3.4% 13,690 6,000.0 11,859 3.0% 4,000.0 7,526 2.0% 2,000.0 5,244 1.0% 0.0 0.0% 3Q15 4Q15 1Q16 2Q16 3Q16 27
Slide 28: Thank You
Thank You COL FINANCIAL
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