Slide 1: COL 1Q17 Investor Presentation
COL 1Q17 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 20.7% stake and actively manages the Company
Slide 4: Ownership Structure
Ownership Structure OUTSTANDING SHARES 476.0Mil 38.1% 20.7% FREE FLOAT 181.5Mil MARKET CAP* Php7.7Bil *AS OF END MARCH 2017 EDWARD K. LEE ALEXANDER L. YU OTHER DIRECTORS & OFFICER PUBLIC 13.9% 27.3% 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: Among the Biggest Philippine-Based Brokers
Among the Biggest Philippine-Based Brokers 1Q17 1Q17 Value % of Broker Name Rank Turnover (PhpBil) Total 1 UBS Securities Philippines Inc. 80.62 9.2% 2 CLSA Philippines, Inc. 78.20 9.0% 3 Deutsche Regis Partners Inc. 70.91 8.1% 4 COL Financial Group, Inc. 50.50 5.8% 5 Credit Suisse Securities (Phil)
Slide 7: Corporate Milestones
Corporate Milestones * SEC granted COL Financial a Mutual Distributor License * Partnered with ALFM, ATRAM,| First Metro, Philamlife, Philequity and Sun Life * Launched the COL Mobile App on the iOS platform + Opened an Investor Center in Makati * COUS IPO for PSE listing © Official change of Copora
Slide 8: Bulk of Revenues Generated From Philippine Operations
Bulk of Revenues Generated From Philippine Operations REVENUE BREAKDOWN 100% 8.8% OTHERS 90% COL’s Philippine operations account for 26.1% INTEREST 80% 98.7% of revenues. 70% Commissions from both Philippines and 1.3% HK COM 60% HK account for 65.2% of revenues. 18.6% PH COM- 50% AGENCY & ADVISORY I
Slide 9: Highlights
Highlights Company Overview Financial & Operating Highlights Growth Plans 10
Slide 10: Key Highlights
Key Highlights Positive Negative • Profits +41.9% • Agency business weakened • Philippine business (stock trading & fund distribution) grew faster than the industry • Broker ranking improved to #4 • Margin lending increased • HK revenues rebounded • Balance sheet remained healthy • Strong growth in
Slide 11: 1Q17 Net Income
CONSOLIDATED INCOME STATEMENT (IN PHP MIL) 1Q17 Net Income 1Q16 1Q17 Change +41.9% Income Amount % Commissions 118.2 139.2 21.0 17.7% 1Q17 net income increased by 41.9% to Interest 52.1 55.6 3.5 6.8% Php100.2 Mil. Other income 1.0 18.7 17.7 1799.7% Total 171.3 213.6 42.2 24.7% Consolidated revenues
Slide 12: Total Expenses
Total Expenses BREAKDOWN OF EXPENSES (IN PHP MIL) +6.2% Change 1Q16 1Q17 Amount % Total expenses increased by 6.2%. Trading Related Expenses Commission expenses 20.9 18.7 (2.2) -10.5% The slower increase was largely due to the Stock exch. dues & fees 5.2 6.1 0.9 17.5% 10.5% drop in commission expens
Slide 13: Philippines Continues to Drive Growth
Philippines REVENUE BREAKDOWN (IN PHP MIL) Change Continues to Drive 1Q16 1Q17 Amount % Growth Philippines Commission 116.6 136.4 19.8 17.0% Revenues from Philippine operations were Self-directed 74.8 96.6 21.7 29.0% up by 24.1%, largely driven by the 17.0% Agency & advisory 41.7 39.8 (1.9) -4.5% in
Slide 14: Philippines Continues to Drive Growth
Philippines REVENUE BREAKDOWN (IN PHP MIL) Change Continues to Drive 1Q16 1Q17 Amount % Growth Philippines Commission 116.6 136.4 19.8 17.0% Interest income grew by 6.8% due to the Self-directed 74.8 96.6 21.7 29.0% 12.8% increase in interest income from cash Agency & advisory 41.7 39.8 (1.9) -4.5%
Slide 15: ROAE Improves to 30.1%
ROAE Improves to 30.1% SELECTED FINANCIAL INDICATORS Change 1Q16 1Q17 Amount % Operating profits grew 39.9% to Php130.9 Operating Profits Mil driven by the strength of Philippine Philippines 99.9 136.5 36.6 36.6% operations and narrower losses from HK operations. Hong Kong (6.4) (5.6) 0.8 12.7% Tota
Slide 16: Strong and Highly Liquid Balance Sheet
Strong and Highly Liquid Balance CONSOLIDATED BALANCE SHEET (IN PHP MIL) Sheet 12/31/16 3/31/17 Change COL remained cash rich and debt free. Amount % Total assets were flat at Php9.0 Bil as cash & Cash & equivalents 7,360.5 7,355.7 (4.8) -0.1% cash equivalents were hardly changed at Receivables 1,18
Slide 17: Sustained Customer Growth
Sustained Customer Growth +25.6% CLIENT BASE 215,612 205,039 250,000 COL’s client base grew by 25.6% Y/Y to 215,612 as of end 1Q17. 171,728 200,000 162,330 Average monthly additions remained strong at 3,524. 112,827 150,000 82,476 100,000 46,166 50,000 - 2012 2013 2014 2015 2016 1Q16 1Q17 18
Slide 18: Healthy Retail Client Inflow
Healthy Retail Client Inflow + 23.7% CLIENT EQUITY 63,556 59,290 70,000 Retail Client equity rose by 23.7% Y/Y to 51,366 60,000 Insitutional Php63.6 Bil. 46,894 43,290 50,000 Net new flow from retail clients amounted to Php1.9 Bil during 1Q17. 32,051 40,000 25,650 30,000 15,891 13,412 20,000 8,709 1
Slide 19: Margin Loans Recover
Margin Loans Recover +54.3% AVE DAILY MARGIN LOANS 1,231 1,400 1,220 Average daily margin loans recovered by 54.3% to Php774 Mil Y/Y. 1,200 971 As of end March, the total number of 952 1,000 approved margin accounts reached 1,147, up 2.3% Y/Y. 774 800 596 31.7% of approved margin accounts utilized t
Slide 20: Market Share Remains Elevated
Market Share Remains Elevated COMPARATIVE PERFORMANCE (COL VS. PSE) COL’s average daily turnover rose 19.4% Change Y/Y to Php841.7 Mil during 1Q17 outpacing 1Q16 1Q17 the 7.1% growth in the PSE’s average daily Amount % turnover. PSE Ave. Daily T/O 6,784.4 7,269.4 485.0 7.1% (PhpMil) COL Ave. Daily T
Slide 21: Highlights
Highlights Company Overview Financial & Operating Highlights Growth Plans 22
Slide 22: 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 23: Update on Fund Distribution Business
Update on Fund Distribution Business NET SALES (IN PHPMIL, ACCORDING TO FUND TYPE) Total Total Type of Fund 1Q16 2Q16 3Q16 4Q16 1Q17 % Total % Total Sales AUA* Money Market 0.6 6.9 1.6 (42.4) 5.3 59.0 4.0% 60.9 4.1% Bond Fund 14.3 21.3 23.8 7.6 6.8 111.0 7.5% 109.6 7.4% Balanced Fund 13.8 11.7 18.3
Slide 24: Update on Fund Distribution Business
Update on Fund Distribution Business SIGNIFICANT SHARE OF INDUSTRY EQUITY FUND SALES (PESO FUNDS ONLY) 1Q16 2Q16 3Q16 4Q16 1Q17 COL 150.9 203.6 192.9 209.9 103.4 Industry 1,181.6 (2,350.1) (2,267.5) 3,125.6 124.9 % Share 12.8% - - 6.7% 82.8% SOURCE: PIFA, COL ESTIMATES 25
Slide 25: Update on Fund Distribution Business
Update on Fund Distribution Business MF INVESTORS MF Investors % of Total Clients 25,000.0 10.0% 9.5% 9.0% 8.9% 20,000.0 8.5% 8.0% 7.5% 7.0% 15,000.0 6.9% 6.0% 5.0% 10,000.0 4.6% 20,493 4.0% 18,317 16,599 3.0% 3.4% 13,690 11,859 5,000.0 2.0% 7,526 5,244 1.0% 0.0 0.0% 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q
Slide 26: Expanding Reach Through Investor Centers
Expanding Reach Through Investor Centers 27
Slide 27: Thank You
Thank You 28
Slide 28: 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