COL Financial Group, Inc. · PSE:COL
COL Financial — Q1 2018 Earnings Presentation
31 slides from COL Financial's earnings presentation, May 22, 2018
Slide 1: COL 1Q18 Investor Presentation
@) COL FINANCIAL + , 9 KY \ We = NY A. ' hs i Y ea Y Vv _ P 2 ‘ ©) bn COL 1Q18 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 20.8% stake and actively manages the Company
Slide 4: Ownership Structure
Ownership Structure OUTSTANDING SHARES 476.0Mil 27.2% 20.8% FREE FLOAT 129.4Mil MARKET CAP* Php7.5Bil *AS OF END DECEMBER 2017 EDWARD K. LEE DAIWA SECURITIES GROUP ALEXANDER C. YU OTHER DIRECTORS & OFFICER 14.9% PUBLIC 23.6% 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 1Q18 1Q18 Value % of Broker Name Rank Turnover (PhpBil) Total 1 COL Financial Group, Inc. 96.15 9.2% 2 UBS Securities Philippines Inc. 84.69 8.1% 3 CLSA Philippines, Inc.. 75.81 7.3% 4 Deutsche Regis Partners Inc. 66.62 6.4% 5 Credit Suisse Securities (Phil), Inc.
Slide 7: Corporate Milestones
Corporate Milestones * COLS IPO for PSE listing * Launched the COL PH Trading platform * PSE approved COL's Became licensed by the SEC to conduct business as a broker * Official change of Coporate name to COL FINANCIAL GROUP, INC. * SEC granted COL Financial a Mutual Distributor License * Partnered
Slide 8: Bulk of Revenues Generated From Philippine Operations
Bulk of Revenues Generated From Philippine Operations REVENUE BREAKDOWN 100.0% 2.0% OTHERS 90.0% 0.9% TRAILER FEES COL’s Philippine operations account for 98.3% of revenues. 80.0% 25.8% INTEREST 70.0% 1.6% HK COM Commissions from both Philippines and HK account for 71.3% of revenues. 60.0% 12.2% PH
Slide 9: Highlights
Highlights Company Overview Financial & Operating Highlights Growth Plans 9
Slide 10: Key Highlights
Key Highlights Positives Negatives • Philippine stock trading and fund • Margin lending business distribution businesses set new weakened records, pushing revenues and net profits to a new record high • Stock trading and fund distribution businesses grew faster than the industry • HK revenues double
Slide 11: 1Q18 Net Income More than Doubles
CONSOLIDATED INCOME STATEMENT (IN PHP MIL) Change 1Q18 Net Income 1Q17 1Q18 Amount % More than Doubles Income Commissions 139.2 260.6 121.4 87.3% Interest 55.6 94.4 38.8 69.6% 1Q18 net income increased by 107.0% to Trailer Fees 2.1 3.4 1.3 61.4% Php207.8 Mil, a new quarterly record. Other income 16.
Slide 12: Total Expenses
Total Expenses BREAKDOWN OF EXPENSES (IN PHP MIL) +22.7% Change 1Q17 1Q18 Total expenses increased by 22.7% to Php101.4 Amount % Mil. Trading Related Expenses Commission expenses 18.7 22.2 3.5 18.7% Trading related expenses were up by 27.9% to Stock exch. dues & fees 6.1 9.5 3.4 56.2% Php31.7 Mil, l
Slide 13: Philippines & HK Enjoy Strong Revenue Growth
REVENUE BREAKDOWN (IN PHP MIL) Philippines & HK Change 1Q17 1Q18 Enjoy Strong Philippines Amount % Revenue Growth Commission 136.4 254.6 118.2 86.7% Self-directed 96.5 209.9 113.4 117.5% Revenues from Philippine operations were Agency & advisory 39.9 44.7 4.8 12.1% up 70.6% as commissions, interest
Slide 14: Philippines & HK Enjoy Strong Revenue Growth
REVENUE BREAKDOWN (IN PHP MIL) Philippines & HK Change 1Q17 1Q18 Enjoy Strong Philippines Amount % Revenue Growth Commission 136.4 254.6 118.2 86.7% Self-directed 96.5 209.9 113.4 117.5% Agency & advisory 39.9 44.7 4.8 12.1% Interest 55.6 94.4 38.8 69.6% Trailer fees increased by 61.4% to Php3.4 Tra
Slide 15: Market Share Reaches New Record
Market Share Reaches New Record COL’s average daily turnover rose 90.4% COMPARATIVE PERFORMANCE (COL VS. PSE) Y/Y to Php1.6 Bil in 1Q18, significantly outpacing the 19.4% growth in the PSE’s Change average daily turnover. 1Q17 1Q18 Amount % PSE Ave. Daily T/O 7,269.4 8,682.1 1,412.7 19.4% Consequent
Slide 16: Market Share Reaches New Record
Market Share Reaches New Record COL Market Share (Value T/O) 17.7% 14.1% 13.3% 12.8% 12.7% 12.5% 12.3% 11.3% 10.8% 9.3% 9.2% 8.8% 8.6% 8.4% 7.8% 7.8% 7.8% 7.5% 7.3% 7.2% 6.9% 6.8% 6.4% 6.2% 6.0% 6.0% 5.8% 2.6% 5.6% 5.2% 4.8% 4.6% 4.6% 4.3% 4.1% 4.1% 4.1% 3.9% 3.6% 3.3% 3.3% 3.3% 1Q13 2Q13 3Q13 4Q13
Slide 17: ROAE Reaches 51.5%
ROAE Reaches 51.5% SELECTED FINANCIAL INDICATORS Change 1Q17 1Q18 Amount % 1Q18 operating profits more than doubled to Operating Profits Php264.3 Mil driven by the strength of both Philippines 136.5 266.8 130.3 95.5% Philippine and HK operations. Hong Kong (5.6) (2.5) 3.1 55.0% Total 130.9 264.3 133
Slide 18: Strong and Highly Liquid Balance Sheet
Strong and Highly Liquid CONSOLIDATED BALANCE SHEET (IN PHP MIL) Balance Sheet 12/31/17 3/31/18 Change Amount % COL remained cash rich and debt free. Cash & equivalents 10,104.9 11,024.7 919.8 9.1% Receivables 1,169.7 805.1 (364.6) -31.2% Total assets were up 4.8% to Php12.4 Bil as Other current ass
Slide 19: Sustained Customer Growth
Sustained Customer Growth +21.4% CLIENT BASE 261,695 247,609 300,000 215,612 COL’s client base grew by 21.4% Y/Y to 205,039 250,000 261,695 as of end 1Q18. 162,330 200,000 Average monthly additions remained strong at 3,840. 112,827 150,000 82,476 100,000 50,000 - 2013 2014 2015 2016 2017 1Q17 1Q18 1
Slide 20: Growing Client Equity
Growing Client Equity + 15.5% CLIENT EQUITY (Php Mil) 73,102 73,379 80,000 63,556 59,290 70,000 Retail Insitutional Client equity rose by 15.5% Y/Y to 60,000 Php73.3 Bil. 46,894 43,290 50,000 Net new flow from retail clients reached Php2.0 Bil in 1Q18. 32,051 40,000 25,650 30,000 15,891 13,412 20,00
Slide 21: Margin Loans Fall
Margin Loans Fall -25.2% AVE DAILY MARGIN LOANS (Php Mil) 1,400 1,231 1,220 Average daily margin loans fell by 1,200 25.2% to Php579 Mil Y/Y. 971 As of end 1Q18, the total number of 1,000 approved margin accounts reached 822 774 1,156, up 0.8% Y/Y. 800 596 27.2% of approved margin accounts 579 600 u
Slide 22: Highlights
Highlights Company Overview Financial & Operating Highlights Growth Plans 22
Slide 23: 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 24: 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 106.9 4.6% 112.4 4.6% Bond Fund 141.5 6.1% 141.2 5.8% Balanced Fund 141.8 6.1% 143.3 5.9% Equity Fund 1,943.0 83.3% 2,033.5 83.7% Total 2,333.3 2,
Slide 25: MF Net Sales Reach a New Quarterly Record
MF Net Sales Reach a New Quarterly Record 350.0 MF NET SALES (Acc to Type of Fund) 300.0 250.0 154.8 200.0 289.5 Equity Fund 203.6 192.9 150.0 Balanced Fund 148.1 209.9 156.2 150.9 192.3 Bond Fund 100.0 110.4 103.4 Money Market 30.9 50.0 0.0 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q1
Slide 26: Significant Share of Industry Equity Fund Sales
Significant Share of Industry Equity Fund Sales SHARE OF INDUSTRY EQUITY FUND SALES (PESO FUNDS ONLY) In PhpMil 1Q17 2Q17 3Q17 4Q17 1Q18 COL’s performance remained strong relative COL 103.4 110.4 192.3 148.1 289.5 to the industry. Industry 124.9 (2,212.5) 739.1 1,405.8 2,960.6 % Share 82.8% - 26.0%
Slide 27: Strong Growth in Average AUA
Strong Growth in Average AUA AVERAGE AUA (NON-MONEY MARKET FUNDS ONLY, IN PHP MIL) 2,238.8 2,028.5 2,500.0 Trailer fee up due to 1,766.5 significant growth in average 1,529.1 2,000.0 AUA on a year-on-year 1,328.4 1,174.0 basis. 1,500.0 1,003.8 753.6 1,000.0 513.0 319.7 500.0 132.6 19.1 0.0 Non-Money
Slide 28: Growing Number & Percentage of Clients Own MFs
Growing Number & Percentage of Clients Own MFs 35,000.0 14.0% 11.6% 30,000.0 11.1% 12.0% 10.4% 9.9% 25,000.0 9.5% 10.0% 8.9% 8.5% 20,000.0 7.5% 8.0% 6.9% 30,421 27,375 15,000.0 6.0% 24,739 4.6% 22,257 20,493 18,317 3.4% 16,599 10,000.0 4.0% 13,690 11,859 7,526 5,000.0 2.0% 5,244 0.0 0.0% 3Q15 4Q15 1
Slide 29: Expanding Reach Through Investor Centers
Expanding Reach Through Investor Centers 29
Slide 30: Thank You
Thank You 30
Slide 31: 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