Col Financial Group, Inc. · PSE:COL
Col Financial — 2Q17 Earnings Presentation
31 slides from Col Financial's earnings presentation, 2017
Slide 1: COL 2Q17 Investor Presentation
COL 2Q17 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 31.8% 20.7% FREE FLOAT 151.5Mil MARKET CAP* Php7.8Bil *AS OF END JUNE 2017 EDWARD K. LEE DAIWA SECURITIES GROUP ALEXANDER C. YU OTHER DIRECTORS & OFFICER 14.9% PUBLIC 20.1% 12.5% 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 1H17 1H17 Value % of Broker Name Rank Turnover (PhpBil) Total 1 UBS Securities Philippines Inc. 206.1 10.4% 2 CLSA Philippines, Inc. 155.4 7.8% 3 Deutsche Regis Partners Inc. 141.6 7.1% 4 COL Financial Group, Inc. 119.4 6.0% 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% 5.1% OTHERS 90% COL’s Philippine operations account for 24.8% INTEREST 80% 99.0% of revenues. 70% 1.9% HK COM Commissions from both Philippines and 60% HK account for 70.1% of revenues. 21.4% 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 +17.1% • HK business remained weak • Philippine business (stock trading & fund distribution) grew faster than the industry • Average daily value turnover & market share reached a record high in 2Q17 • Margin lending increased • Balance sheet remained health
Slide 11: 1H17 Net Income
CONSOLIDATED INCOME STATEMENT (IN PHP MIL) 1H17 Net Income 1H16 1H17 Change +17.1% Income Amount % Commissions 293.2 322.5 29.3 10.0% 1H17 net income increased by 17.1% to Interest 104.9 114.3 9.4 8.9% Php214.6 Mil. Other income 2.6 23.4 20.8 800.0% Total 400.7 460.2 59.4 14.8% Consolidated revenues
Slide 12: Total Expenses
Total Expenses BREAKDOWN OF EXPENSES (IN PHP MIL) +11.9% Change 1H16 1H17 Amount % Total expenses increased by 11.9%. Trading Related Expenses Commission expenses 46.8 46.9 0.1 0.3% The slower increase was largely due to the Stock exch. dues & fees 12.0 13.8 1.8 15.2% flattish commission expenses of
Slide 13: Philippines Continues to Drive Growth
Philippines REVENUE BREAKDOWN (IN PHP MIL) Change Continues to Drive 1H16 1H17 Amount % Philippines Growth Commission 289.2 318.4 29.2 10.1% Self-directed 196.1 219.7 23.6 12.1% Revenues from Philippine operations were Agency & advisory 93.1 98.7 5.6 6.0% up by 15.0%, largely driven by the 10.1% Int
Slide 14: Philippines Continues to Drive Growth
Philippines REVENUE BREAKDOWN (IN PHP MIL) Change Continues to Drive 1H16 1H17 Amount % Philippines Growth Commission 289.2 318.4 29.2 10.1% Interest income was up 8.9% as interest income Self-directed 196.1 219.7 23.6 12.1% from both margin lending and cash placements Agency & advisory 93.1 98.7 5.
Slide 15: ROAE Improves to 30.9%
ROAE Improves to 30.9% SELECTED FINANCIAL INDICATORS Change 1H16 1H17 Amount % Operating profits grew 16.7% to Php278.8 Operating Profits Mil driven by the strength of Philippine Philippines 249.3 289.6 40.3 16.2% operations. Hong Kong (10.5) (10.8) (0.4) -3.7% Total 238.8 278.8 39.9 16.7% Operating
Slide 16: Strong and Highly Liquid Balance Sheet
Strong and Highly Liquid Balance CONSOLIDATED BALANCE SHEET (IN PHP MIL) Sheet 12/31/16 6/30/17 Change COL remained cash rich and debt free. Amount % Total assets were up 9.0% to Php9.7 Bil as Cash & equivalents 7,360.5 7,834.7 474.2 6.4% cash & cash equivalents increased by Receivables 1,188.6 1,48
Slide 17: Strong and Highly Liquid Balance Sheet
Strong and Highly Liquid Balance CONSOLIDATED BALANCE SHEET (IN PHP MIL) Sheet 12/31/16 6/30/17 Change Amount % Trade payables were up by 12.2% to Php8.2 Bil largely due to the increase in clients’ cash Cash & equivalents 7,360.5 7,834.7 474.2 6.4% position from Php6.1 Bil as of end 2016 to Receivab
Slide 18: Sustained Customer Growth
Sustained Customer Growth +23.9% CLIENT BASE 224,926 205,039 250,000 COL’s client base grew by 23.9% Y/Y to 224,926 as of end 1H17. 181,541 162,330 200,000 Average monthly additions remained strong at 3,315 for the YTD period. 112,827 150,000 82,476 100,000 46,166 50,000 - 2012 2013 2014 2015 2016 1
Slide 19: Healthy Retail Client Inflow
Healthy Retail Client Inflow + 20.9% 80,000 CLIENT EQUITY (Php Mil) 68,194 Retail 59,290 70,000 56,410 Insitutional Client equity rose by 20.9% Y/Y to 60,000 Php68.2 Bil. 46,894 43,290 50,000 Net new flow from retail clients amounted to Php2.2 Bil during 1H17. 32,051 40,000 25,650 30,000 15,891 13,4
Slide 20: Margin Loans Recover
Margin Loans Recover +50.7% AVE DAILY MARGIN LOANS (Php Mil) 1,400 1,231 1,220 Average daily margin loans recovered by 50.7% to Php800 Mil Y/Y. 1,200 971 As of end June, the total number of 952 1,000 approved margin accounts reached 800 1,153, up 1.9% Y/Y. 800 27.7% of approved margin accounts 596 5
Slide 21: Market Share Reaches New Record
Market Share Reaches New Record COL’s average daily turnover rose 18.1% COMPARATIVE PERFORMANCE (COL VS. PSE) Y/Y to Php1.0 Bil during 1H17 outpacing the 11.2% growth in the PSE’s average daily Change 1H16 1H17 turnover. Amount % PSE Ave. Daily T/O 7,514.0 8,352.0 838.0 11.2% Consequently, COL’s mar
Slide 22: Market Share Reaches New Record
2.0% 2.5% 3.0% 3.5% 4.0% 4.5% 5.0% 5.5% 6.0% 6.5% 1Q13 4.6% 2Q13 3.6% 3Q13 3.3% 4Q13 2.6% 1Q14 3.3% 2Q14 4.6% 3Q14 4.1% 4Q14 4.1% 2014 4.1% 1Q15 4.3% 2Q15 3.3% 3Q15 4.1% COL MARKET SHARE (TOTAL) 4Q15 3.9% 1Q16 5.2% 2Q16 6.0% 3Q16 6.0% 4Q16 4.8% Market Share Reaches New Record 1Q17 5.8% 2Q17 6.2% 23
Slide 23: Highlights
Highlights Company Overview Financial & Operating Highlights Growth Plans 24
Slide 24: 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 25: Update on Fund Distribution Business
Update on Fund Distribution Business NET SALES (IN PHPMIL, ACC TO TYPE OF FUND) Type of Fund Total Sales** % Total Total AUA* % Total Money Market 77.6 4.8% 71.0 4.2% Bond Fund 114.6 7.1% 114.2 6.7% Balanced Fund 119.7 7.4% 121.3 7.1% Equity Fund 1,313.1 80.8% 1,400.1 82.0% Total 1,624.9 1,706.6 *AS
Slide 26: Update on Fund Distribution Business
Update on Fund Distribution Business SIGNIFICANT SHARE OF INDUSTRY EQUITY FUND SALES (PESO FUNDS ONLY) COL’s performance 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 remained strong relative to the industry. COL 150.9 203.6 192.9 209.9 103.4 110.4 Industry 1,181.6 (2,350.1) (2,267.5) 3,125.6 124.9 (2,212.5) % Shar
Slide 27: Update on Fund Distribution Business
Update on Fund Distribution Business STRONG GROWTH IN AUA (NON-MONEY MARKET FUNDS ONLY) 1,800.0 1,600.0 1,529.1 Trailer fee up due to significant growth in average 1,400.0 1,328.4 AUA on a year-on-year 1,200.0 1,174.0 basis. 1,003.8 1,000.0 800.0 753.6 600.0 513.0 400.0 319.7 200.0 132.6 19.1 0.0 2Q
Slide 28: Update on Fund Distribution Business
Update on Fund Distribution Business MF INVESTORS MF Investors % of Total Clients 25,000 12.0% 9.9% 9.5% 10.0% 20,000 8.9% 8.5% 7.5% 8.0% 6.9% 15,000 6.0% 22,257 20,493 18,317 10,000 16,599 4.0% 13,690 11,859 5,000 2.0% 0 0.0% 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 29
Slide 29: Expanding Reach Through Investor Centers
Expanding Reach Through Investor Centers 30
Slide 30: Thank You
Thank You 31
Slide 31: 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