COL Financial Group, Inc. · PSE:COL
COL Financial — Q1 2014 Earnings Presentation
30 slides from COL Financial's earnings presentation, May 2014
Slide 1: In the Business of Trust. 1Q14 Results
IN THE BUSINESS OF TRUST. 1Q14 RESULTS COL FINANCIAL fe del 1h () Ge PO is) 13S
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 19.5% stake and actively manages the Company 3
Slide 4: Ownership Structure
Ownership Structure 44.6% 19.5% EDWARD K. LEE ALEXANDER L. YU OTHER DIRECTORS & OFFICER PUBLIC 13.4% OUTSTANDING SHARES 468.7Mil FREE FLOAT 209.2Mil MARKET CAP* Php8.7Bil *AS OF END MARCH 2014 22.5% 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 (Accounts)
Leading and Fastest Growing Online Stockbroker in the Philippines In Terms of Numbers of Accounts 2012 Total Accounts % of Total Broker Name % Change Rank 2011 2012 Accounts Online 1 COL Financial 27,969 46,444 66.1% 59.4% 2 BPI Securities 16,543 19,721 19.2% 25.2% 3 First Metro 4,217 6,638 57.4% 8.
Slide 7: Leading and Fastest Growing Online Stockbroker in the Philippines (Turnover)
Leading and Fastest Growing Online Stockbroker in the Philippines In Terms of Numbers of Accounts Rank Value TO (PhpBil) % of No. of Trades (’000) No. of Broker Online Value No. of % % Online Name 2011 2012 Value 2011 2012 TO Trades Change Change Transactions TO COL 1 1 121.9 150.4 23.3% 76.8% 1,242
Slide 8: Also Amongst the Biggest Philippine-Based Brokers
Also Amongst the Biggest Philippine-Based Brokers 1Q14 Value 1Q14 % of Broker Name Turnover Rank Total (PhpBil) 1 Deutsche Regis Partners Inc. 111.22 12.17 2 CLSA Phils. Inc 96.91 10.60 3 Maybank ATR KimEng Securities, Inc. 71.72 7.85 4 UBS Securities Philippines Inc. 70.57 7.72 5 Macquarie Securiti
Slide 9: Corporate Milestones
MAY 2014 MOA Signing with FEBRUARY 2012 BDO Unibank, Inc. - Launched the Relationship Trust and Investment JANUARY 2008 Manager services for Group Received the PSE Outstanding high value customers. Domestic IPO Award for 2006 and special recognition for Active MARCH 2012 Investor Educaton. COL was S
Slide 10: Bulk of Revenues Generated From Philippine Operations
Bulk of Revenues Generated From Philippine Operations REVENUE BREAKDOWN 1.6% OTHERS COL’s Philippine operations account for 92.4% of revenues, while its HK 33.6% INTEREST operations account for the balance. Commissions from both Philippines and 7.8% HK COM HK account for 64.7% of revenues. 24.0% PH
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 growth in new • Net profits down as accounts and net new market trading volume asset flows drops • Market leadership position maintained • Balance sheet remained healthy 12
Slide 13: 1Q14 Net Income Fell 46.5% Y/Y
CONSOLIDATED INCOME STATEMENT (IN PHP MIL) 1Q14 Net Income 1Q13 1Q14 Change Fell 46.5% Y/Y Amount % Income Commissions 172.7 93.1 (79.5) -46.1% Interest 49.6 48.4 (1.2) -2.4% Net income dropped 46.5% Y/Y to Other income 0.9 2.4 1.4 156.0% Php58.8 Mil. Total 223.2 143.9 (79.3) -35.5% Consolidated rev
Slide 14: Philippines & HK Weakened
REVENUE BREAKDOWN (IN PHP MIL) Change Philippines & HK Weakened 1Q13 1Q14 Amount % Philippines Commission 158.5 82.0 (76.5) -48.3% Revenues fell 35.5% Y/Y to Php143.9 Mil Self-directed 94.6 47.4 (47.2) -49.9% as both Philippine and HK operations Agency & advisory 63.9 34.5 (29.3) -45.9% weakened. In
Slide 15: Margins Remained Healthy
Margins Remained Healthy SELECTED FINANCIAL INDICATORS Change 1Q13 1Q14 Amount % Operating profits fell by 43.9% Y/Y to Operating Profits Php75.4 Mil. Philippines 127.8 72.4 (55.4) -43.3% Hong Kong 6.7 3.0 (3.7) -55.1% Despite the drop in operating profits Total and margins, margin levels remained 1
Slide 16: Expenses Remained in Check
Expenses Remained in Check BREAKDOWN OF EXPENSES (IN PHP MIL) Total expenses fell by 22.7% Y/Y to Change Php68.6 Mil. 1Q13 1Q14 Amount % Trading related expenses fell more Trading Related Expenses significantly by 52.2% to Php21.7 Mil as Commission expenses 39.1 17.3 (21.8) -55.8% the value of trans
Slide 17: Strong and Highly Liquid Balance Sheet
Strong and Highly Liquid Balance Sheet CONSOLIDATED BALANCE SHEET (IN PHP MIL) COL remained cash rich and debt Change free. 12/31/13 3/31/14 Amount % Total assets grew by 7.0% to Php5.1 Bil largely driven by the 7.5% increase in Cash & equivalents 3,316.1 3,563.8 247.7 7.5% cash. Receivables 1,351.9
Slide 18: Sustained Customer Growth: Client Base
Sustained Customer Growth CLIENT BASE +59.4% COL’s client base grew by 59.4% Y/Y to 89,093 as of end March 2014. 89,093 82,476 Average monthly additions remained strong at 2,206 clients in 1Q14. 55,891 46,166 28,067 15,345 8,716 2009 2010 2011 2012 2013 1Q13 1Q14 18
Slide 19: Sustained Customer Growth: Client Equity
Sustained Customer Growth CLIENT EQUITY +16.1% Client equity grew by 16.1% Y/Y to Php51.7 Bil. 51,670 47,942 Net new flow of clients reached 44,502 Php1.0 Bil in 1Q14. 34,359 16,447 11,962 5,122 2009 2010 2011 2012 2013 1Q13 1Q14 19
Slide 20: Margin Loans Increased
Margin Loans Increased AVE DAILY +17.3% MARGIN LOANS Average daily margin loans increased by 17.3% Y/Y to Php1.3 Bil. 1,296 As of end 1Q14, the total number of 1,231 approved margin accounts 1,102 1,105 reached 1,052, up 7.5% Y/Y. 952 Meanwhile, 34.6% of approved margin accounts utilized their margi
Slide 21: Market Leadership Position Maintained
Market Leadership Position Maintained COL’s average daily turnover fell 48.6% COMPARATIVE PERFORMANCE (COL VS. PSE) Y/Y to Php486.0 Mil. The drop is steeper 1Q13 1Q14 Amount % compared to that of the PSE due to the sharper drop in transactions of PSE Ave. Daily T/O 10,219.4 7,372.4 (2,847.0) -27.9%
Slide 22: Investor Presentation Highlights: Growth Plans
Investor Presentation Highlights COMPANY FINANCIAL & OPERATING GROWTH OVERVIEW HIGHLIGHTS PLANS 22
Slide 23: Updates on Growth Plans: MOA with iRemit
Updates on Growth Plans DEC 2013: MOA WITH iREMIT iRemit will assist COL in processing account openings and handle remittances from overseas clients in 24 countries and territories IMPLICATIONS To improve COL’s ability to tap OFs, immigrants and other nationalities which the company was previously u
Slide 24: Updates on Growth Plans: About iRemit
Updates on Growth Plans ABOUT iREMIT iRemit is the largest publicly listed non-bank Filipino-owned company engaged in the business of fund transfer and remittance services from abroad into the Philippines. iRemit currently has more than 1,400 remittance outlets consisting of subsidiaries, agents and
Slide 25: Updates on Growth Plans: MOA with BPI and SLAMCI
Updates on Growth Plans JAN 2014: MOA WITH BPI ASSET MANAGEMENT & TRUST GROUP (BPI) and SUN LIFE ASSET MANAGEMENT CO. INC. (SLAMCI) COL will now be able to offer its customers various types of professionally managed funds through its platform. IMPLICATIONS To allow COL to address the needs of custom
Slide 26: Updates on Growth Plans: Collective Investment Schemes
Updates on Growth Plans ASSET ALLOCATION OF CIS BACKGROUND ON CIS IN THE PHILIPPINES MONEY MARKET Total size: Php757 Bil as of end FIXED INCOME 2013. Mutual funds account for BALANCED FUNDS 27% while UITFs account for 73%. EQUITY FUNDS 17% Bulk (Php352 Bil or 46.5%) allocated to money market funds 8
Slide 27: Market Share and Ranking of SLAMCI
Updates on Growth Plans MARKET SHARE & RANKING OF SLAMCI IN THE MUTUAL FUND INDUSTRY Market Total Number (In PhpMil as of end 2013) SLAMCI Industry Rank Share of Funds Stock Fund 14,648.0 63,926.8 22.9% 1 11 Balanced Fund 18,343.4 33,897.0 54.1% 1* 11 Bond Fund 7,875.5 106,036.4 7.4% 3** 21 Money Ma
Slide 28: Market Share and Ranking of BPI in UITF Industry
Updates on Growth Plans MARKET SHARE & RANKING OF BPI IN THE UTIF INDUSTRY Market Total Number (In PhpMil as of end 2013) BPI Industry Rank Share of Funds Stock Fund 23,795.3 63,001.9 37.8% 2 25 Balanced Fund 11,176.8 26,435.4 42.3% 1 16 Bond Fund 59,726.8 111,232.2 53.7% 1 55 Money Market Fund 60,8
Slide 29: Tie Ups with More Asset Management Companies
Updates on Growth Plans TIE UPS WITH MORE ASSET MANAGEMENT COMPANIES Apr 2014: MOA with ATR KimEng Asset Management, Inc. • AUM of Php10.4 Bil as of end 2013 • Second largest net seller of stock funds in 2013 next to SLAMCI at Php5.7 Bil May 2014: MOA with BDO Unibank Inc. – Trust and Investment Gro
Slide 30: Thank You
Thank You COL FINANCIAL