Slide 1: 9M14 Earnings Presentation
9M14 EARNINGS Duel p RES E NTATIO N ; Dr. Pamela Ingrid Lim, 31, Dentist =ai\ =a ry LO (as ¢ € . COL FINANCIAL WAS BUILT ON THE FOUNDATION THAT iy e : ae \' P ~| ae. = | EVERY FILIPINO DESERVES TO BE RICH.” A ) WA. Bah ete - EDWARD K LEE CHARMAN & FOUNDER “Tess tenza, 55, daugther Maya, 2 Future Ret
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 44.4% 19.5% EDWARD K. LEE ALEXANDER L. YU OTHER DIRECTORS & OFFICER PUBLIC 13.4% OUTSTANDING SHARES 468.8Mil FREE FLOAT 208.1Mil MARKET CAP* Php6.7Bil *AS OF END SEPTEMBER 2014 22.7% 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. . . 2013 Total Accounts % of Total Broker Name % Change Rank 2012 2013 Accounts Online 1 COL Financial 46,444 83,540 79.9% 64.6% 2 BPI Securities 19,721 25,775 30.7% 19.9% 3 First Metro 6,638 9,995 50.
Slide 7: And in Terms of Value and Volume of Transactions
. . .And in Terms of Value and Volume of Transactions Rank Value TO (PhpBil) % of No. of Trades (’000) No. of Online Value No. of Broker Name % % Online 2012 2013 Value 2012 2013 TO Trades Change Change Transactions TO 1 1 COL Financial 150.4 182.9 21.7% 75.4% 2,664.5 3,262.0 22.4% 78.8% 2 2 BPI Sec
Slide 8: Also Amongst the Biggest Philippine-Based Brokers
Also Amongst the Biggest Philippine-Based Brokers 9M14 Value 9M14 % of Broker Name Turnover Rank Total (PhpBil) 1 Deutsche Regis Partners Inc. 334.92 10.87 2 CLSA Philippines, Inc. 263.51 8.55 3 UBS Securities Philippines Inc. 251.02 8.14 4 Maybank ATR Kim Eng Securities, Inc. 227.96 7.40 5 Macquari
Slide 9: Corporate Milestones
= PES i ox AUGUST MARCH Became licensed The COLPH by the SEC to online trading conduct business _ platform became as a broker and of operational securities in the Philippines APRIL CitisecOnline HK Ltd. (COL HK) became a trading participant of the IK Exchange MAY The COL HK latform was jaunched Corp
Slide 10: Bulk of Revenues Generated From Philippine Operations
Bulk of Revenues Generated From Philippine Operations REVENUE BREAKDOWN 0.8% OTHERS COL’s Philippine operations account for 93.7% of revenues, while its HK 29.0% INTEREST operations account for the balance. 6.3% HK COM Commissions from both Philippines and HK account for 70.2% of revenues. 23.5% 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 • 3Q14 operating results • 9M14 net profits still fell Y/Y rebounded Y/Y due to weak 1H14 numbers • Balance sheet remained resulting from lower market healthy volumes • Strong growth in new accounts and healthy net new asset flows • Market leadership position maintai
Slide 13: 3Q14 Net Income Up 28.4% Y/Y
CONSOLIDATED INCOME STATEMENT (IN PHP MIL) 3Q14 Net Income 3Q14 3Q14 Change Up 28.4% Y/Y Amount % Income Commissions 113.4 134.9 21.5 19.0% Interest 48.6 50.4 1.8 3.7% 3Q14 net income improved Other income (0.6) 1.5 2.1 -348.1% significantly by 28.4% to Php96.0 Mil. Total 161.4 186.8 25.4 15.7% Cons
Slide 14: Philippines & HK Rebounded
REVENUE BREAKDOWN (IN PHP MIL) Change Philippines & HK Rebounded 3Q13 3Q14 Amount % Philippines Revenues increased by 15.7% Y/Y to Commission 104.3 120.1 15.8 15.2% Php186.8 Mil as both the Philippines and Self-directed 59.9 74.3 14.4 24.0% HK rebounded. Agency & advisory 44.4 45.8 1.4 3.1% Philippi
Slide 15: Margins, ROAE Improved Significantly
Margins, ROAE Improved Significantly SELECTED FINANCIAL INDICATORS Change 3Q13 3Q14 Amount % Operating profits rose by 23.7% Y/Y to Operating Profits Php115.3 Mil as both the Philippines Philippines 89.8 105.6 15.8 17.6% and HK improved. Hong Kong 3.4 9.7 6.3 185.3% Total 93.2 115.3 22.1 23.7% Margi
Slide 16: 9M14 Net Income Fell 16.1% Y/Y
CONSOLIDATED INCOME STATEMENT (IN PHP MIL) 9M14 Net Income 9M13 9M14 Change Fell 16.1% Y/Y Amount % Income Commissions 452.0 368.3 (83.7) -18.5% Interest 151.5 152.0 0.5 0.4% However, 9M14 net income still Other income 0.3 4.3 4.0 1374.1% dropped 16.0% Y/Y to Php249.3 Mil. Total 603.7 524.6 (79.2) -
Slide 17: Philippines & HK Still Down
REVENUE BREAKDOWN (IN PHP MIL) Change Philippines & HK Still Down 9M13 9M14 Amount % Philippines Revenues fell 13.2% Y/Y to Php524.3 Mil Commission 417.0 335.3 (81.8) -19.6% as both Philippine and HK operations Self-directed 248.0 212.1 (35.9) -14.5% suffered from lower trading volumes during 1H14.
Slide 18: Margins Remained Healthy
Margins Remained Healthy SELECTED FINANCIAL INDICATORS Change 9M13 9M14 Amount % Operating profits fell by 14.4% Y/Y to Operating Profits Php314.3 Mil, largely pulled down by Philippines 351.7 300.9 (50.8) -14.4% the 27.3% drop in operating profits Hong Kong 15.3 13.3 (1.9) -12.6% during 1H14. Total
Slide 19: 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 9/30/14 Amount % Total assets grew by 40.8% to Php6.7 Bil largely driven by the 47.4% increase in Cash & equivalents 3,316.1 4,887.3 1,571.3 47.4% cash. Receivables 1,
Slide 20: Sustained Customer Growth
Sustained Customer Growth CLIENT BASE +34.6% COL’s client base grew by 34.6% Y/Y 104,242 to 104,242 as of end September 2014. 82,476 77,466 Average monthly additions remained strong at 2,418 clients in 9M14. 46,166 28,067 15,345 8,716 6,309 2008 2009 2010 2011 2012 2013 9M13 9M14 20
Slide 21: Sustained Customer Growth
Sustained Customer Growth CLIENT EQUITY +18.7% 55,924 Client equity grew by 18.7% Y/Y to Php55.9 Bil. 47,942 47,101 Net new flow of clients reached Php3.1 Bil in 9M14. 34,359 16,447 11,962 5,122 2,128 2008 2009 2010 2011 2012 2013 9M13 9M14 21
Slide 22: Margin Loans Increased
Margin Loans Increased AVE DAILY +4.2% MARGIN LOANS Average daily margin loans increased by 4.2% Y/Y to Php1.3 Bil. 1,272 1,231 1,220 1,102 As of end 9M14, the total number of approved margin accounts 952 reached 1,108, up 5.9% Y/Y. Meanwhile, 32.6% of approved margin accounts utilized their 573 mar
Slide 23: Market Leadership Position Maintained
Market Leadership Position Maintained COMPARATIVE PERFORMANCE (COL VS. PSE) COL’s 9M14 average daily turnover fell 9M13 9M14 Amount % 18.7% Y/Y to Php682.9 Mil. Nevertheless, the drop was smaller compared to the PSE Ave. Daily T/O 10,884.7 8,430.4 (2,454.2) -22.5% (PhpMil) 22.5% drop in the PSE’s av
Slide 24: Investor Presentation Highlights: Growth Plans
Investor Presentation Highlights COMPANY FINANCIAL & OPERATING GROWTH OVERVIEW HIGHLIGHTS PLANS 24
Slide 25: Growth Plans
Growth Plans Maintain leadership by focusing on our consistent, long-term strategic goals Priorities Statement Strategies #1. Continue to be the leading • Set up more investor centers Expand Client asset gatherer in the brokerage • Enter into tie-ups to expand Acquisition industry market reach • Hol
Slide 26: Updates on Growth Plans
Updates on Growth Plans DISTRIBUTION OF THIRD PARTY FUNDS • COL will soon be able to offer various types of professionally managed funds through its platform • At present, COL has signed MOAs with eight asset management companies which together account for 85.8% of the total non- money market collec
Slide 27: Thank You
Thank You COL FINANCIAL
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