Col Financial Group, Inc. · PSE:COL
Col Financial — Investor Presentation (June 2013)
33 slides from Col Financial's investor presentation, June 2013
Slide 1: Investor Presentation
Investor Presentation @) COL FINANCIAL PHILIPPINES
Slide 2: Investor Presentation Highlights
INVESTOR PRESENTATION HIGHLIGHTS 2
Slide 3: Company Overview
COMPANY OVERVIEW Established and licensed by the SEC in 1999 In 2002, wholly owned subsidiary COL HK became a trading participant of the HK Exchange The leading and fastest-growing online stockbroker in the Philippines Focused on tapping the underserved retail investor base in the stock market Found
Slide 4: Ownership Structure
OWNERSHIP STRUCTURE EDWARD K. LEE PUBLIC 19.5% 44.4% 13.8% ALEXANDER L. YU 22.3% Outstanding Shares 468.7Mil Free Float 208.1Mil OTHER DIRECTORS & OFFICER Market Cap* Php9.5Bil *As of end of March 2013 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 THE CHAMPION OF THE FILIPINO INVESTOR ” 5
Slide 6: Leading & Fastest Growing Online Stockbroker in the Philippines
LEADING & FASTEST GROWING ONLINE STOCKBROKER IN THE PHILIPPINES IN TERMS OF NUMBER OF ACCOUNTS Total Accounts % of Total 2012 Broker Name % Change Accounts Rank 2011 2012 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% 8.5%
Slide 7: And in Terms of Value and Volume of Online Transactions
AND IN TERMS OF VALUE AND VOLUME OF ONLINE TRANSACTIONS Rank Value TO (Php Bil) % of No. of Trades (‘000) Online % of Online Value No. of Broker Name % % 2011 2012 Value 2011 2012 Transactions TO Trades Change TO Change 1 1 COL Financial 121.9 150.4 23.3% 76.8% 1,242.2 2,664.5 114.5% 82.2% 2 2 BPI S
Slide 8: Also Amongst the Biggest Philippine-Based Brokers
ALSO AMONGST THE BIGGEST PHILIPPINE-BASED BROKERS 2011 2012 Value Turnover 2012 Broker Name Rank Rank (Php Mil) % Total 2 1 Deutsche Regis Partners Inc. 382,244 10.80 4 2 UBS Securities Phil. 355,272 10.03 3 3 CLSA Phils. Inc 304,177 8.58 1 4 Maybank ATR KimEng Securities, Inc. 259,447 7.32 5 5 Macq
Slide 9: Corporate Milestones
CORPORATE MILESTONES AUGUST 1999 Became licensed by the SEC to conduct business as a broker and dealer of securities in the Philippines. MARCH 2001 The COL PH online trading platform became operational. APRIL 2002 CitisecOnline HK Ltd. (COL HK) became a trading participant of the HK Exchange. MAY 20
Slide 10: Bulk of Revenues Generated from Philippine Operations
BULK OF REVENUES GENERATED FROM PHILIPPINE OPERATIONS 0.4% 22.2% REVENUE BREAKDOWN • COL’s Philippine operations account for PH COM-SELF-DIRECTED 93.6% of revenues, while its HK 6.4% PH COM-AGENCY & operations account for the balance ADVISORY HK COM • Commissions from both Philippines and HK account
Slide 11: Investor Presentation Highlights
INVESTOR PRESENTATION HIGHLIGHTS 11
Slide 12: Key Investment Highlights
KEY INVESTMENT HIGHLIGHTS • Equity investments in an expansion phase • Online brokerage business in a secular uptrend • Highly geared towards the expanding retail investors base • To leverage on strong brand equity 12
Slide 13: Equity Investments in an Expansion Phase
EQUITY INVESTMENTS IN AN EXPANSION PHASE TOTAL CIS IN THE PHILIPPINES • Total investments in CIS have (IN PHP BIL) 352 increased by a CAGR of 23.7% from 2008 to 2012 UITF • Growth was driven by the 23.0% and MUTUAL FUNDS 24.9% CAGR of investments in UITFs TOTAL CIS 250 and mutual funds 224 206 180 T
Slide 14: Equity Investments in an Expansion Phase
EQUITY INVESTMENTS IN PSE VALUE TURNOVER (IN PHP BIL) AN EXPANSION PHASE 806.4 538.3 457.3 321.2 360.6 885.6 965.6 • Value turnover in the PSE also 665.6 728.5 increased by a CAGR of 23.6% 397.4 from 2008 to 2012 2008 2009 2010 2011 2012 • Growth in value turnover of local investors (24.8% CAGR) out
Slide 15: Driven by Falling Interest Rates
DRIVEN BY FALLING INTEREST RATES 5.7 SDA RATE & T-BILL RATE • Interest rates are on a downtrend, with the average SDA and 91-day T-bill rates falling from 5.7% in 2008 to 2.5% and 0.8% during the first five months of 2013 • The drop in interest rates was driven 2.5 by improving government finances,
Slide 16: Central Bank to Remove Access to SDA
CENTRAL BANK TO REMOVE ACCESS TO SDA • Created in 1998 by the central bank to FUNDS PARKED IN SDA help control liquidity, the SDA or (IN PHP TRIL) Special Deposit Account is a popular 1.9 deposit substitute given its higher relative return • The central bank recently issued a circular removing acces
Slide 17: To Act as a Catalyst for More Equity Investments
TO ACT AS A CATALYST FOR MORE EQUITY INVESTMENTS SDA RATE VS. FUND FLOWS (IN PHP MIL) Mutual Fund BDO Ave. Daily • Fund flows into managed Date Ave. SDA Rate Net Sale Acceptances accounts grew as a result of Jan-13 3.0% 7,253 68 falling SDA rates Feb-13 3.0% 9,759 151 Mar-13 2.5% 8,437 152 Apr-13 2.
Slide 18: Growth Potential Remains Significant
GROWTH POTENTIAL REMAINS SIGNIFICANT CIS AS PERCENTAGE OF DEPOSITS Philippines 5.9% Singapore* 6.6% • Relative to bank deposits, only Malaysia 20.8% 5.9% of total deposits in the Hong Kong* 104.0% Philippines currently invested in US* 123.7% CIS *AS OF END 2011, OTHERS AS OF END 2012 SOURCE: BSP, MA
Slide 19: Online Brokerage Business in a Secular Uptrend
ONLINE BROKERAGE BUSINESS IN A SECULAR UPTREND SHARE OF ONLINE BROKERS 14.9% CLIENT BASE • Market share of online brokers in VALUE TURNOVER terms of client base grew from 4.3% in 2008 to 14.9% in 2012 • Market share in terms of value turnover also grew from 2.0% in 2008 to 6.7% in 2012 6.7% SHARE OF
Slide 20: Online Brokerage Business in a Secular Uptrend
ONLINE BROKERAGE BUSINESS IN A SECULAR INTERNET SUBSCRIBERS UPTREND 3,242,800 2,803,924 • Growth expected to continue, driven by growing number of 2,138,976 internet subscribers in the 1,710,679 country • From 2008 to 2012, total number of internet subscribers 1,061,626 increased by a CAGR of 32.2%
Slide 21: Highly Geared Towards the Expanding Retail Investors Base
HIGHLY GEARED TOWARDS THE EXPANDING RETAIL INVESTORS 7% BASE CLIENT BASE 9% COL BPI • COL is currently the dominant 25% 59% FIRST METRO market leader among online OTHERS stockbrokers in the Philippines in terms of number of clients and value turnover • Market share has consistently VALUE TURNOVER 8%
Slide 22: Highly Geared Towards the Expanding Retail Investors Base
HIGHLY GEARED TOWARDS THE EXPANDING RETAIL INVESTORS BASE COMPARATIVE PERFORMANCE (COL VS. PSE) • COL’s share in terms of volume 2010 2011 2012 1Q13 and value of transactions in PSE Daily Value T/O the PSE is also improving (Php Mil) 4,948.3 5,713.2 7,261.1 10,219.4 COL Daily Value T/O • From 17.0%
Slide 23: Fast Growing Customer Base
FAST GROWING CUSTOMER BASE CLIENT BASE 55,891 +67.1% 46,536 • COL’s client base grew by a CAGR of 67.1% from 6,309 as of end 2008 to 55,891 as of end March 2013 28,067 • Average monthly additions accelerated to a record level of 15,345 3,118 clients in 1Q13 from 1,539 clients in 2012 and 109 clients
Slide 24: Accompanied by a Rapidly Growing Client Equity
ACCOMPANIED BY A RAPIDLY GROWING CLIENT EQUITY CLIENT EQUITY (IN PHP MIL) 44,502 +104.5% • Client equity increased by a CAGR 34,359 of 104.5% from Php2.1 Bil as of end 2008 to Php44.5 Bil as of end March 2013 • In 2012, net new asset flows reached Php6.9 Bil and 16,447 accounted for 38.5% of the tot
Slide 25: To Leverage on Strong Brand Equity
TO LEVERAGE ON STRONG BRAND EQUITY Offer more products • Offer flexible margin rate scheme • Distribute third party funds • Acquire an investment trust license Expand market reach • Build investor centers in key business areas • One investor center in 2013 and three in 2014 25
Slide 26: Investor Presentation Highlights
INVESTOR PRESENTATION HIGHLIGHTS 26
Slide 27: Summary of Income Statement
SUMMARY OF INCOME STATEMENT • Revenues from Philippines grew significantly and % % (In Php Mil) 2011 2012 1Q12 1Q13 accounted for a growing share Change Change Revenues of consolidated revenues in Php Com - Self-directed 232.8 265.4 14.0% 85.7 94.7 10.5% 2012 and 1Q13 Php Com - Agency & 94.5 141.1 4
Slide 28: Summary of Balance Sheet
SUMMARY OF BALANCE SHEET • COL has a strong balance sheet with high cash balance and no debts • Trade payables grew by 34.0% Y/Y % Change % Change In Php Mil 2011 2012 1Q13 in 2012 and by 28.6% for the YTD (Y/Y) (YTD) period ending March 2013 due to Cash 2,188.9 2,647.3 20.9% 3,055.5 15.4% higher ca
Slide 29: Selected Financial Ratios
SELECTED FINANCIAL RATIOS 2011 2012 1Q12 1Q13 • Operating margin in 1Q13 improved Operating Margins relative to 2012 as fixed operating Philippines 59.2% 53.1% 64.2% 61.4% costs remained in check while HK accounted for a smaller share of Hong Kong 69.0% 42.4% 59.8% 44.8% revenues Total 61.0% 52.1% 6
Slide 30: Operating Performance of the Philippines Continuously Improving
OPERATING PERFORMANCE OF THE PHILIPPINES CONTINUOUSLY IMPROVING 593 541 PHILIPPINE OPERATING • From 2008 to 2012, revenues from PERFORMANCE Philippines increased by a CAGR of REVENUES 55.3_% OPERATING INCOME 320 315 • Operating income increased by a 292 CAGR of _134.5_% 208 • Revenue during 1Q13 gre
Slide 31: Consolidated Results in an Uptrend
CONSOLIDATED RESULTS CONSOLIDATED REVENUES IN AN UPTREND PHILIPPINES HONG KONG 117 58 • The strength of the Philippines was 199 largely responsible for the significant 320 541 593 improvement in consolidated results. 25 15 152 Compared to 2008, consolidated 292 179 208 revenues and operating profits
Slide 32: Thank You!
THANK YOU! COLFINANCIL | ucurMANCALCOM a=
Slide 33: 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
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