Col Financial Group, Inc. · PSE:COL
Col Financial — 9M 2015 Earnings Presentation
27 slides from Col Financial's earnings presentation, 2015
Slide 1: 9M15 Earnings
9M 1Q15 15 2Q 15 EARNINGS Mancomm Meeting 1
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 20.3% stake and actively manages the Company 3
Slide 4: Ownership Structure
Ownership Structure 38.7% 20.3% EDWARD K. LEE ALEXANDER L. YU OTHER DIRECTORS & OFFICER PUBLIC 14.0% OUTSTANDING SHARES 475.0Mil FREE FLOAT 183.6Mil MARKET CAP* Php7.3Bil *AS OF END SEPTEMBER 2015 27.0% 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: Amongst the Biggest Philippine-Based Brokers
Amongst the Biggest Philippine-Based Brokers 9M15 Value 9M15 % of Broker Name Turnover Rank Total (PhpBil) 1 Deutsche Regis Partners Inc. 383.75 11.20% 2 UBS Securities Philippines Inc. 300.91 8.78% 3 CLSA Philippines, Inc. 275.90 8.05% 4 Maybank ATR Kim Eng Securities, Inc. 271.02 7.91% 5 Macquarie
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% 2.7% OTHERS COL’s Philippine operations account 90% for 95.1% of revenues, while its HK 80% 28.5% INTEREST operations account for the balance. 70% Commissions from both Philippines and 4.8% HK COM 60% HK account for 68.8% o
Slide 10: Investor Presentation Highlights: Financial & Operating Highlights
Investor Presentation Highlights COMPANY FINANCIAL & OPERATING GROWTH OVERVIEW HIGHLIGHTS PLANS 10
Slide 11: Key Highlights
Key Highlights POSITIVE NEGATIVE • 9M15 recurring profits up 8.4% • 9M15 headline profits • Strong growth in new down 1.1% accounts • Margin lending down • Strong start for the funds distribution business • Interest income from cash placements continued to grow • Balance sheet remained healthy 11
Slide 12: 9M15 Net Income -1.1%, Recurring Income +8.4%
CONSOLIDATED INCOME STATEMENT (IN PHP MIL) 9M15 Net Income - 1.1%, Change Recurring Income + 8.4% 9M14 9M15 Amount % Income Commissions 368.3 391.1 22.9 6.2% 9M15 net income fell by 1.1% to Php246.4 Mil. However, recurring income increased Interest 152.0 162.0 10.0 6.6% by 8.5% to Php270.4 Mil. Othe
Slide 13: Philippines Offsets Weakness of HK
REVENUE BREAKDOWN (IN PHP MIL) Philippines Offsets 9M14 9M15 Change Weakness of HK Amount % Philippines Commission 335.3 364.0 28.8 8.6% Revenues increased as growth of Self-directed 212.1 235.2 23.1 10.9% Philippines offset the weakness of HK. Agency & advisory 123.1 128.8 5.7 4.6% Philippine commi
Slide 14: ROAE was Flattish
ROAE was Flattish SELECTED FINANCIAL INDICATORS Change 9M14 9M15 Amount % Operating profits were flattish at Operating Profits Php312.3 Mil as operating margin fell for both Philippine and HK operations. Philippines 300.9 303.8 2.9 1.0% Excluding the non-recurring tax Hong Kong 13.3 8.5 (4.8) -36.3%
Slide 15: 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 12/31/14 09/30/15 Total assets grew by 33.1% to Php8.5 Bil Amount % largely driven by the 50.2% increase in cash. Cash & equivalents 4,794.3 7,199.0 2,404.7 50.2% Receivables 1
Slide 16: Sustained Customer Growth
Sustained Customer Growth CLIENT BASE +46.2% COL’s client base grew by 46.2% Y/Y 152,409 180,000 to 152,409 as of end September 2015. 160,000 112,827 140,000 Average monthly additions for YTD 104,242 120,000 remained strong at 4,398. For 3Q15 82,476 100,000 alone, COL added 13,781 clients. 80,000 46
Slide 17: Healthy Retail Client Inflow
Healthy Retail Client Inflow CLIENT EQUITY - 17.8% 45,972 50,000 43,290 42,225 45,000 Retail Client equity fell by 17.8% Y/Y to 40,000 Insitutional Php46.0 Bil largely due to the 32,051 Php12.4 Bil outflow by an 35,000 institutional client who previously 25,650 30,000 used COL as a custodian. 25,000
Slide 18: Margin Loans Drop
Margin Loans Drop AVE DAILY -17.5% MARGIN LOANS Average daily margin loans were 1,272 1,400 1,231 1,220 down 17.5% at Php1.0 Bil Y/Y. 1,102 1,049 1,200 As of end September, the total number of approved margin 952 1,000 accounts reached 1,129, up 1.9% Y/Y. 800 However, only 31.2% of approved 573 600
Slide 19: Market Share Suffers from High Base Effect
Market Share Suffers from High Base Effect COL underperformed the market, COMPARATIVE PERFORMANCE (COL VS. PSE) coming from a high base in 9M14. Change Average daily turnover rose 8.2% Y/Y to 9M14 9M15 Php738.9 Mil during 9M15. This is slower Amount % than the 12.3% increase in the PSE’s PSE Ave. Da
Slide 20: Market Share Suffers from High Base Effect
Market Share Suffers from High Base Effect COMPARATIVE PERFORMANCE (COL VS. PSE) 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 PSE Ave. Daily T/O 7,372.4 8,932.1 8,986.9 9,981.5 10,874.5 9,226.3 8,352.1 (PhpMil) COL Ave. Daily T/O 486.0 823.8 738.9 819.7 930.5 614.4 677.2 (PhpMil) COL Market Share 3.3% 4.6% 4.
Slide 21: Investor Presentation Highlights: Growth Plans
Investor Presentation Highlights COMPANY FINANCIAL & OPERATING GROWTH OVERVIEW HIGHLIGHTS PLANS 21
Slide 22: Update on Fund Distribution Business
Update on Fund Distribution Business ASSET MGMT. CO.S AVAILABLE THROUGH “COL FUND SOURCE” AUM (as of end ‘14) Asset Mgmt Co. Value Mkt Share (PhpBil) BPI (ALFM) 80.9 35.5% Sun Life* 46.9 20.6% Philam* 39.9 17.5% Philequity* 31.2 13.7% First Metro Asset Mgmt.* 13.6 6.0% ATR KimEng* 10.7 4.7% Total 22
Slide 23: Update on Fund Distribution Business
Update on Fund Distribution Business BETA TESTING PHASE Date May 13 to July 24, 2015 Total net inflow (PhpMil)* 63.61 Total orders 3,091 Ave daily inflow (PhpMil) 1.25 Ave order size (Php) 20,579.75 OPEN ACCESS PHASE Date July 27 to Sept 30, 2015 Total net inflow (PhpMil)* 174.41 Total orders 11,291
Slide 24: Update on Fund Distribution Business
Update on Fund Distribution Business AUA According to Fund Type* % of Type of Fund AUA (PhpMil) Total Money Market 10.95 4.7% Bond Fund 18.95 8.1% Balanced Fund 26.34 11.2% Equity Fund 178.34 76.0% Total 234.58 100.0% * As of end September 5,712 accounts have mutual funds in their portfolios 24
Slide 25: Update on Fund Distribution Business
Update on Fund Distribution Business Market Share of Industry Net Sales* Industry COL Fund Type % Share (PhpMil) (PhpMil) Bond Fund -684.5 17.9 - Balanced Fund -677.4 25.9 - Equity Fund 1,641.4 156.2 9.5% * Third quarter only, excludes ETF & US dollar funds Market share in terms of equity fund net s
Slide 26: Thank You
Thank You COL FINANCIAL
Slide 27: 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