Col Financial Group, Inc. · PSE:COL
Col Financial — Q1 2013 Earnings Presentation
21 slides from Col Financial's earnings presentation, 2013
Slide 1: COL Financial
Yaka @) COL FINANCIAL PHL LP Pt
Slide 2: Investor Presentation Highlights
INVESTOR PRESENTATION HIGHLIGHTS COMPANY OVERVIEW FINANCIAL AND OPERATING HIGHLIGHTS
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.
Slide 4: Ownership Structure
OWNERSHIP STRUCTURE Public, 45.0% Edward K. Lee, 19.5% Other Alexander Directors & C. Yu, 13.9% Officers, 21.6% Outstanding Shares 468.7Mil Free Float 208.1Mil Market Cap* Php9.5 BIl *As of end of March 2013
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.
Slide 6: Corporate Milestones
FEBRUARY 2012 Launched the Relationship C 0 R Pp 0 RAT E M | L E STO N E S corer er Me Honea comma Domestic IPO Award for 2006 and special recognition for Active MARCH 2012 Investor Educaton. COL was SEC approves the change MARCH 2001 tanked by the PSE as the #1 in the corporate name The COL che il
Slide 7: Investor Presentation Highlights
INVESTOR PRESENTATION HIGHLIGHTS COMPANY OVERVIEW FINANCIAL AND OPERATING HIGHLIGHTS
Slide 8: Key Highlights
KEY HIGHLIGHTS Positives Negatives • Record revenues for 1Q13 • HK revenues down Y/Y • Record growth in new accounts • Operating margins drop and net new asset flows • Net profits fell 15% Y/Y • Expenses remained in check • Increased market share in terms of local value T/O • HK operations rebounded
Slide 9: 1Q13 Net Income Down by 15.1%
Consolidated Income Statement (in PhpMil) 1Q13 NET INCOME 1Q12 1Q13 Amount Change % DOWN BY 15.1% INCOME Commissions 156.0 172.7 16.7 10.7% Interest 47.2 49.6 2.4 5.0% • Consolidated net income fell 15.1% Y/Y Other income 1.0 0.9 (0.1) -7.9% to Php110.0 Mil as HK revenues Total 204.2 223.2 19.0 9.3%
Slide 10: Philippines Drives Revenue Growth
Revenue Breakdown (in PhpMil) PHILIPPINES DRIVES Change 1Q12 1Q13 REVENUE GROWTH Philippines Amount % Commission 130.8 158.5 27.7 21.2% Regular accounts 85.7 94.7 9.0 10.5% • Revenues rose to a record level of Agency for advisory 45.1 63.8 18.7 41.4% Php223.2 Mil up 9.3% Y/Y driven by Interest 47.2
Slide 11: Philippines Drives Revenue Growth
PHILIPPINES DRIVES Revenue Breakdown REVENUE GROWTH 0.5% 0.4% 23.1% 22.2% • Philippines now accounts for 93.3% of 6.4% total revenues as the share of HK 12.3% shrank to 6.7% from a high of 69.0% in 2009. 28.6% 22.1% • Share of the agency business expanded to 40.2% of Philippine commissions in 1Q13 f
Slide 12: Operating Profit Growth Driven by Philippines
OPERATING PROFIT Selected Financial Indicators GROWTH DRIVEN BY Change PHILIPPINES 1Q12 1Q13 Amount % Operating Profits • Operating profits rose by 3.4% Y/Y to Philippines 115.0 127.8 12.8 11.1% Php134.5 Mil as the share of Philippine Hong Kong 15.1 6.7 -8.4 -55.5% operations expanded. Total 130.1 1
Slide 13: A Record Quarter Based on Revenues
A RECORD QUARTER BASED ON REVENUES Quarterly Revenues 35.8% 223 204 15 • Consolidated revenues for the quarter 25 hit a record of Php223.2 Mil driven 167 152 14 primarily by the strength of Philippine 9 operations. 128 10 • On a Q/Q basis, consolidated revenues 208 jumped by 35.8%. 179 143 153 118 1
Slide 14: Expenses Remained in Check
EXPENSES REMAINED IN CHECK Breakdown of Expenses (in PhpMil) • Total expenses grew by 19.6% Y/Y to Change Php88.7 Mil in 1Q13 as trading related 1Q12 1Q13 Amount % expenses increased significantly. Trading Related Expenses • Trading related expenses jumped by Commission expenses 22.4 39.1 16.7 74.5%
Slide 15: Strong and Highly Liquid Balance Sheet
Consolidated Balance Sheet (in PhpMil) STRONG AND HIGHLY 12/31/12 3/31/13 Change Amount % LIQUID BALANCE SHEET ASSETS Current Assets Cash & cash equivalents 2,647.3 3,005.5 408.2 18.6% • Consolidated assets composed Trade receivables 1,444.3 1,972.7 528.4 45.5% mainly of cash and trade receivables O
Slide 16: Record Customer Growth
RECORD CUSTOMER GROWTH Client Base +72.5% • COL’s client base grew by 72.5% 55,891 Y/Y to 55,891 as of end March 2013. 46,536 • Average monthly additions accelerated to a record level of 32,403 3,118 clients during 1Q13 from 28,067 1,445 clients during 1Q12 and 1,539 clients in 2012. 15,345 8,716 6,
Slide 17: Client Equity More Than Doubled
CLIENT EQUITY MORE THAN DOUBLED +111.2% Client Equity (PhpMil) • Client equity more than doubled Y/Y 44,502 from Php21.0 Bil to Php44.5 Bil. • Out of the Php23.5 Bil increase in 34,359 client equity, Php12.5 Bil or 53.2% of the total was due to net new asset flows. Php11.0 Bil or 46.8% was due to po
Slide 18: Net New Asset Flows Reached Record Levels
NET NEW ASSET FLOWS REACHED RECORD LEVELS Net New Asset Flows 7,528 • For 1Q13 alone, net new asset flows reached a record amount of Php7.5 Bil • Bulk of the net new asset flows in 1Q13 came from the agency business which accounted for 62.7% of the total net new asset flow or Php4.7 Bil. 2,198 2,185
Slide 19: Margin Loans Continued to Recover
MARGIN LOANS CONTINUED TO RECOVER Ave Daily Margin Loans +13.6% • Average daily margin loans 1,102 1,105 increased by 13.6% Y/Y to Php1.1 Bil. 972 952 • As of end March 2013, the total number of approved margin accounts reached 979, up 12.8% Y/Y. • Meanwhile, 36.3% of approved 573 margin accounts ut
Slide 20: COL Continued to Gain Market Share
COL CONTINUED TO GAIN MARKET SHARE • COL’s Average daily T/O grew by 18.0% Y/Y to Php901.6 Mil, faster compared Comparative Performance (COL Vs. PSE) to the 2.0% Y/Y growth in value T/O 1Q12 1Q13 Amount % attributable to local investors. PSE Ave. Daily T/O • COL’s market share in terms of value (Php
Slide 21: Thank You.
Thank You. WWW.COLFINANCIAL.COM