Slide 1: 1Q15 Earnings Presentation
2015 1Q15 2Q 15 EARNINGS Mancomm Meeting PRESENTATION 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 38.5% 20.5% EDWARD K. LEE ALEXANDER L. YU OTHER DIRECTORS & OFFICER PUBLIC 14.0% OUTSTANDING SHARES 475.0Mil FREE FLOAT 182.9Mil MARKET CAP* Php7.1Bil *AS OF END DECEMBER 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 2015 Value 2015 % of Broker Name Turnover Rank Total (PhpBil) 1 Deutsche Regis Partners Inc. 445.9 10.4% 2 Maybank ATR Kim Eng Securities, Inc. 428.5 10.0% 3 UBS Securities Philippines Inc. 352.3 8.2% 4 CLSA Philippines, Inc. 344.0 8.0% 5 Macquarie Capita
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% 2.3% OTHERS COL’s Philippine operations account 90% for 95.9% of revenues, while its HK 80% 31.6% INTEREST operations account for the balance. 70% Commissions from both Philippines and 60% 4.1% HK COM HK account for 66.0% 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 • 2015 net income flat • 2015 recurring profits fell • Strong growth in new 2.2% accounts • Margin lending down • Interest income from cash • Lower market share in placements continued to terms of value turn over grow • Balance sheet remained healthy • Strong start f
Slide 12: 2015 Net Income Flat, Recurring Income -2.2%
CONSOLIDATED INCOME STATEMENT (IN PHP MIL) 2015 Net Income Flat, Change Recurring Income – 2.2% 2014 2015 Amount % Income Commissions 503.4 486.9 (16.5) -3.3% Interest 215.4 233.2 17.8 8.3% 2015 net income was flat at Php262.7 Mil. Recurring income fell by 2.2% to Php286.4 Other income 5.0 17.1 12.1
Slide 13: Philippines Offsets Weakness of HK
REVENUE BREAKDOWN (IN PHP MIL) Philippines Offsets 2014 2015 Change Weakness of HK Amount % Philippines Commission 464.6 456.8 (7.9) -1.7% Revenues increased as growth of Self-directed 297.6 295.7 (1.9) -0.6% Philippines offsets the weakness of HK. Agency & advisory 167.0 161.1 (6.0) -3.6% Philippin
Slide 14: 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 12/31/15 Total assets grew by 25.0% to Php8.0 Bil Amount % largely driven by the 40.8% increase in cash. Cash & equivalents 4,794.3 6,749.2 1,954.9 40.8% Receivables 1
Slide 15: Sustained Customer Growth
Sustained Customer Growth CLIENT BASE +43.9% 162,330 180,000 160,000 COL’s client base grew by 43.9% Y/Y 112,827 140,000 to 162,330 as of end 2015. 120,000 Average monthly additions reached 82,476 100,000 a record high of 4,125 in 2015. 80,000 46,166 60,000 28,067 15,345 40,000 8,716 20,000 - 2009 2
Slide 16: Healthy Retail Client Inflow
Healthy Retail Client Inflow CLIENT EQUITY - 17.2% 46,929 50,000 43,290 45,000 Retail Client equity fell by 17.2% Y/Y to 40,000 Insitutional Php46.9 Bil largely due to the Php12.4 Bil outflow by an 32,051 35,000 institutional client who previously used COL as a custodian. 25,650 30,000 25,000 Equity
Slide 17: Margin Loans Drop
Margin Loans Drop AVE DAILY -20.4% MARGIN LOANS Average daily margin loans were 1,400 1,231 1,220 1,102 down 20.4% at Php971 Mil Y/Y. 1,200 As of end December, the total number of approved margin 971 952 1,000 accounts reached 1,142, up 2.2% Y/Y. 800 However, only 30.9% of approved 573 600 margin ac
Slide 18: Market Share Declines
Market Share Declines COL’ average daily turnover fell 2.1% Y/Y COMPARATIVE PERFORMANCE (COL VS. PSE) to Php699.6 Mil in 2015. In contrast, the PSE’s average daily turnover grew by 1.9%. Change 2014 2015 Amount % Consequently, COL’s market share in PSE Ave. Daily T/O terms of value turnover fell to
Slide 19: Investor Presentation Highlights: Growth Plans
Investor Presentation Highlights COMPANY FINANCIAL & OPERATING GROWTH OVERVIEW HIGHLIGHTS PLANS 19
Slide 20: Update on Fund Distribution Business
Update on Fund Distribution Business ASSET MGMT. CO.S AVAILABLE THROUGH “COL FUND SOURCE” AUM (as of end ‘15) Asset Mgmt Co. Value Mkt Share (PhpBil) BPI (ALFM) 86.1 39.4% Sun Life* 47.4 21.7% Philam* 42.9 19.6% Philequity* 16.5 7.6% First Metro Asset Mgmt.* 13.1 6.0% ATR KimEng* 8.0 3.7% Total 213.
Slide 21: Update on Fund Distribution Business
Update on Fund Distribution Business AUA According to Fund Type* % of Type of Fund AUA (PhpMil) Total Money Market 87.1 17.4% Bond Fund 36.9 7.3% Balanced Fund 44.2 8.3% Equity Fund 331.5 66.3% Total 499.7 100.0% * As of end December 7,526 accounts have mutual funds in their portfolios (4.6% of tota
Slide 22: 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 -3,249.8 35.2 - Balanced Fund -677.8 42.1 - Equity Fund 3,332.0 311.0 9.3% * Second half of 2015 only, excludes US dollar funds 22
Slide 23: Thank You
Thank You COL FINANCIAL
Slide 24: 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