Col Financial Group, Inc. · PSE:COL
Col Financial — 9M2021 Earnings Presentation
26 slides from Col Financial's earnings presentation, 2021
Slide 1: 9M21 COL Investor Presentation
9M21 COL Investor Presentation 1
Slide 2: Company Overview
Company Overview Established and The leading and fastest- licensed by the SEC in growing online stockbroker 1999 in the Philippines Focused on tapping Founder (Edward K. Lee) the underserved retail retains a 21.7% stake investor base in the and actively manages stock market the Company 2
Slide 3: Outstanding Shares, Free Float and Market Cap
4.76 Bil 21.7 Outstanding Shares % Edward K. Lee Free Float 1.16 Bil 24.3% Market Cap* Php20.6 Bil Public *As of end Sept 2021 14.9% Daiwa Securities Group 25.2% Other Directors & Officer 13.9% Alexander C. Yu 3
Slide 4: 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 4
Slide 5: COL Milestones
COL Milestones 1999 2000-2001 2006 2008 2010 Began operating the Listed in the PSE at Launched the COL Launched the full- Licensed by the SEC COL PH online Php0.136/sh service agency and Easy Investment to conduct business trading platform advisory team called Program (EIP) as a broker and the COL P
Slide 6: COL Milestones
COL Milestones 2012 2014 2015 2017 Officially changed Granted a Mutual Launched COL Fund Japan’s Daiwa corporate name to Fund Distributor Source - the first fund Securities Group, Inc. COL Financial License by the SEC supermarket in the acquired a 14.9% Group Inc. country stake in the company 6
Slide 7: The Biggest Philippine Based Stockbroker
The Biggest Philippine Based Stockbroker 9M21 Rank Broker Name 9M21 Value Turnover (Php Bil) % of Total 1 COL Financial Group, Inc. 309.0 9.9 2 CLSA Philippines Inc 216.3 6.9 3 UBS Securities Philippines Inc 198.2 6.3 4 BDO Securities Corp 197.6 6.3 5 BPI Securities Corp 131.6 4.2 6 Credit Suisse Se
Slide 8: The Biggest Philippine Based Stockbroker
The Biggest Philippine Based Stockbroker Total Accounts (as of 2020) Total Online Accounts (as of 2020) 69% 31 % 53% 47% Others Others COL COL Source: PSE 8
Slide 9: Bulk of Revenues Generated from Commissions and Interest
Revenue Breakdown 1H21 5.3% Others 1.5% Trailer Fees Bulk of Revenues 12.6% Interest Generated from Commissions and Interest 80.6% Commissions from both Philippines and HK account for 80.6% of revenues. Commissions Interest income from margin loans and cash placements account for 12.6% of revenues.
Slide 10: Key Operating Highlights
Key Operating Highlights Positives Negatives 1. Record revenues and profits 2. 9M21 profits already above 2020 full 1. Interest income fell sharply year profits 3. Maintained rank as the country’s number one stockbroker 10
Slide 11: 9M21 Net Income +98% Y/Y
Pro Forma Consolidated Income Statement (Php Mil) Change 9M21 Net Income 9M20 9M21 Amount % Income +98% Y/Y Commissions 457.9 817.9 360.0 78.6% Interest 205.4 128.3 (77.1) -37.6% 9M21 net income almost doubled to a nine-month Trailer Fees 12.2 15.7 3.4 28.0% record of Php583.2 Mil. The amount is als
Slide 12: Most Revenue Items Up
Pro Forma Revenue Breakdown (Php Mil) Most Revenue Items Up 9M20 9M21 Amount Change % Revenues jumped by 50.1% led by the significant Revenue Breakdown increase in commissions and other income. Commission 457.9 817.9 360.0 78.6% PH-Self-directed 394.0 742.7 348.7 88.5% Commission revenues increased
Slide 13: Most Revenue Items Up
Pro Forma Revenue Breakdown (Php Mil) Most Revenue Items Up 9M20 9M21 Amount Change % Self-directed clients accounted for the lion’s share of total Revenue Breakdown commission revenues at 91.1%. Commission 457.9 817.9 360.0 78.6% PH-Self-directed 394.0 742.7 348.7 88.5% Core commission revenues and
Slide 14: 3Q21 Net Income +12% Y/Y
Pro Forma Consolidated Income Statement (Php Mil) Change 3Q21 Net Income 3Q20 3Q21 Amount % Income +12% Y/Y Commissions 157.6 178.0 20.4 12.9% Interest 50.1 44.1 (6.0) -12.0% 3Q21 net income increased by 12.1% to Php103.7 Trailer Fees 4.3 5.4 1.1 25.1% Mil. Other income 0.2 0.6 0.3 165.6% Total 212.
Slide 15: Manageable Fixed Expenses
Pro Forma Breakdown of Expenses (Php Mil) Change Manageable Fixed 9M20 9M21 Amount % Trading Related Expenses Expenses Commission expenses 18.4 23.9 5.6 30.3% Agency & Advisory 16.1 22.8 6.7 41.3% Operating expenses increased by 6.5%, largely driven by CROs & Others 2.2 1.1 -1.1 -50.0% the 27.0% jum
Slide 16: ROAE Jumped to 39.5%
ROAE Jumped to 39.5% Selected Financial Ratios Annualized ROAE improved from 22.8% to 39.5%. 9M20 9M21 The improvement in profitability was driven by the significant increase in margins and higher asset Operating Profit Margin 58.7% 70.7% turnover. EBITDA Margin 65.7% 75.5% Margins improved due to t
Slide 17: Still Number 1
Comparative Performance (COL vs. PSE) Change Still Number 1 9M20 9M21 Amount % PSE Ave. Daily T/O (PhpMil) 6,479.4 8,432.2 1,952.7 30.1% COL’s average daily turnover grew strongly by 81.9% to Php1.7 Bil in 9M21, outpacing the COL Ave. Daily T/O (PhpMil) 913.1 1,661.3 748.2 81.9% 30.1% growth in the
Slide 18: Strong Balance Sheet
Strong Balance Sheet Pro Forma Consolidated Balance Sheet (Php Mil) Change Cash & cash equivalents decreased by 40.6% to Php3.4 12/31/20 9/30/21 Amount % Bil. This was largely due to the placement of more funds in investment securities to earn higher yields. Cash & cash equivalents 5,782.4 3,434.0 -
Slide 19: Significant Customer Growth
Client Base +18.4% Significant 478,673 Customer Growth 437,048 404,183 332,098 292,401 COL’s client base grew by 18.4% Y/Y to 247,609 478,673 as of end September 2021. Average monthly additions during the past 12 months reached 6,208. 2017 2018 2019 2020 9M20 9M21 19
Slide 20: Client Equity up on Higher Deposits, and Better Market Conditions
Client Equity (Php Mil) +42.1% Client Equity up on 107,346 111,041 Higher Deposits, and Better Market Conditions 78,133 73,102 72,673 72,398 Client equity was up 42.1% Y/Y to Php111.0 Bil as of end September 2021. Net new cash inflows from retail clients reached Php12.5 Bil during the past twelve mo
Slide 21: Margin Loans Up
Ave Daily Margin Loans (Php Mil) +42.5% Margin Loans Up 822 Average daily margin loans increased by 42.5% to Php664 Mil Y/Y. 664 617 As of end September 2021, the total number of 536 518 approved margin accounts was 1,232, higher by 466 4.5% compared to the same period last year. Only 34.3% of appro
Slide 22: COL Accounted for 3.4% of Industry Equity Fund Sales
9M21 Net Sales (in Php Mil, Acc to Type of Fund) Net Sales Industry COL % Share COL Accounted for Money Market 39,988.8 6.3 0.0% 3.4% of Bond -514.3 1.1 -0.2% Industry Equity Balanced -230.2 13.4 -5.8% Fund Sales Equity fund 4,436.9 149.0 3.4% Feeder fund* 2,836.8 38.3 1.4% Total 46,518.0 208.2 0.4%
Slide 23: Average AUA Up
23 during the first nine months. Trailer fees up due to increase in Average AUA Up average AUA on a Y/Y and YTD basis 2Q15 19.1 3Q15 132.6 4Q15 319.7 1Q16 513.0 2Q16 753.6 3Q16 1,003.8 4Q16 1,174.0 Source: PIFA, COL estimates 1Q17 1,328.4 2Q17 1,529.1 3Q17 1,766.5 4Q17 2,028.5 1Q18 2,238.8 2Q18 2,33
Slide 24: Growing Number, but lower Percentage of Clients Owned MFs
24 10,000.0 20,000.0 30,000.0 40,000.0 50,000.0 60,000.0 70,000.0 0.0 5,244 3.4% 7,526 4.6% 11,859 6.9% 13,690 7.5% 16,599 8.5% 18,317 8.9% 20,493 9.5% 22,257 9.9% 24,739 10.4% 27,375 11.1% of Clients Owned MFs 30,421 11.6% MF Investors 32,675 12.0% 34,847 12.3% 36,349 12.4% 38,069 12.5% 39,880 12.8
Slide 25: Growing Number, but Lower Percentage of Clients Own MFs
25 10,000.0 20,000.0 30,000.0 40,000.0 50,000.0 60,000.0 70,000.0 0.0 SOURCE: COL ESTIMATES 5,244 3.4% 7,526 4.6% 11,859 6.9% 13,690 7.5% 16,599 8.5% 18,317 8.9% 20,493 9.5% 22,257 9.9% 24,739 10.4% 27,375 11.1% MF Investors 30,421 11.6% 32,675 12.0% 34,847 12.3% 36,349 12.4% 38,069 12.5% % of Total
Slide 26: 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