Col Financial Group, Inc. · PSE:COL
Col Financial — H1 2014 Earnings Presentation
28 slides from Col Financial's earnings presentation, 2014
Slide 1: 1H14 Earnings Presentation
1H14 EARNINGS oe PRESENTATION pupgsteetmen Dentist mS ny VA P ¢ = . COL FINANCIAL WAS BUILT ON THE FOUNDATION THAT Waa ‘ \ F -) a. = EVERY FILIPINO DESERVES TO BE RICH.” \ Ae) WA Mikki and Nina Cuence, 30, with = EDWARD K LEE, CHAIRMAN & FOUNDER Tess Atienza, 55, ‘vl daugther Maya, 2 Future Retiree
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 208.2Mil MARKET CAP* Php7.0Bil *AS OF END JUNE 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 1H14 Value 1H14 % of Broker Name Turnover Rank Total (PhpBil) 1 Deutsche Regis Partners Inc. 230.12 11.59 2 CLSA Philippines, Inc. 170.83 8.60 3 UBS Securities Philippines Inc. 152.80 7.69 4 Macquarie Capital Securities (Phil), Inc. 150.95 7.60 5 May
Slide 9: Corporate Milestones
aoe a AUGUST Became licensed by the SEC to conduct business as a broker and of securities in the Philippines MARCH The COL PH online trading platform became operational APRIL CitisecOnline HK Ltd. (COL HK) became a trading partipant of the IK Exchange MAY The COL HK latform was jaunched 2005-06 NOVE
Slide 10: Bulk of Revenues Generated From Philippine Operations
Bulk of Revenues Generated From Philippine Operations REVENUE BREAKDOWN 100% 0.8% OTHERS COL’s Philippine operations account 90% for 94.6% of revenues, while its HK 80% 30.1% INTEREST operations account for the balance. 70% Commissions from both Philippines and 60% 5.4% HK COM HK account for 69.1% o
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 • 2Q14 operating results • 1H14 net profits fell Y/Y rebounded Q/Q as market trading • Balance sheet remained volume dropped healthy • Strong growth in new accounts and net new asset flows • Market leadership position maintained 12
Slide 13: 1H14 Net Income Fell 31.0% Y/Y
CONSOLIDATED INCOME STATEMENT (IN PHP MIL) 1H14 Net Income 1H13 1H14 Change Fell 31.0% Y/Y Amount % Income Commissions 338.6 233.4 -105.2 -31.1% Interest 102.9 101.6 -1.2 -1.2% Net income dropped 31.0% Y/Y to Other income 1.9 2.8 0.9 44.1% Php153.3 Mil. Total 443.4 337.8 -105.6 -23.8% Consolidated r
Slide 14: Philippines & HK Weakened
REVENUE BREAKDOWN (IN PHP MIL) Change Philippines & HK Weakened 1H13 1H14 Amount % Philippines Commission 312.7 215.2 (97.6) -31.2% Revenues fell 23.8% Y/Y to Php337.8 Mil Self-directed 188.1 137.8 (50.3) -26.8% as both Philippine and HK operations Agency & advisory 124.6 77.4 (47.2) -37.9% weakened
Slide 15: Margins Remained Healthy
Margins Remained Healthy SELECTED FINANCIAL INDICATORS Change 1H13 1H14 Amount % Operating profits fell by 27.3% Y/Y to Operating Profits Php199.0 Mil. Philippines 262.0 195.4 (66.6) -25.4% Hong Kong 11.8 3.6 (8.2) -69.6% Despite the drop in operating profits, Total 273.8 199.0 (74.8) -27.3% margin
Slide 16: Expenses Remained in Check
Expenses Remained in Check BREAKDOWN OF EXPENSES (IN PHP MIL) Total expenses fell by 18.0% Y/Y to Change Php139.1 Mil. 1H13 1H14 Amount % Trading related expenses fell more Trading Related Expenses significantly by 42.3% to Php49.0 Mil as Commission expenses 72.5 39.5 -32.9 -45.5% the value of trans
Slide 17: 2Q14 Net Income Up 60.6% Q/Q
CONSOLIDATED INCOME STATEMENT (IN PHP MIL) 2Q14 Net Income 1Q14 2Q14 Change Up 60.6% Q/Q Amount % Income Commissions 93.1 140.2 47.1 50.6% Interest 48.4 53.2 4.8 10.0% On a Q/Q basis, 2Q14 net income Other income 2.4 0.4 (1.9) -81.7% improved significantly by 60.6% to Total 143.9 193.9 50.0 34.8% Ph
Slide 18: 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 6/30/14 Amount % Total assets grew by 33.3% to Php6.4 Bil largely driven by the 36.2% increase in Cash & equivalents 3,316.1 4,517.3 1,201.2 36.2% cash. Receivables 1,
Slide 19: Sustained Customer Growth
Sustained Customer Growth CLIENT BASE +40.8% COL’s client base grew by 40.8% Y/Y to 96,430 as of end June 2014. 96,430 Average monthly additions 82,476 remained strong at 2,326 clients in 1H14. 68,481 46,166 28,067 15,345 8,716 2009 2010 2011 2012 2013 1H13 1H14 19
Slide 20: Sustained Customer Growth
Sustained Customer Growth +18.4% CLIENT EQUITY Client equity grew by 18.4% Y/Y to Php54.9 Bil. Net new flow of clients reached 54,929 Php2.2 Bil in 1H14. 47,942 46,386 34,359 16,447 11,962 5,122 2009 2010 2011 2012 2013 1H13 1H14 20
Slide 21: Margin Loans Increased
Margin Loans Increased AVE DAILY +17.3% MARGIN LOANS Average daily margin loans increased by 10.7% Y/Y to Php1.3 Bil. As of end 1H14, the total number of 1,330 approved margin accounts 1,231 1,201 reached 1,074, up 3.7% Y/Y. 1,102 952 Meanwhile, 29.7% of approved margin accounts utilized their margi
Slide 22: Market Leadership Position Maintained
Market Leadership Position Maintained COL’s 1H14 average daily turnover fell COMPARATIVE PERFORMANCE (COL VS. PSE) 30.6% Y/Y to Php652.1 Mil. Nevertheless, 1H13 1H14 Amount % 2Q14 average daily turnover recovered 69.5% to Php823.8 Mil from PSE Ave. Daily T/O 11,511.4 7,372.4 8,932.1 8,139.4 (PhpMil)
Slide 23: Investor Presentation Highlights: Growth Plans
Investor Presentation Highlights COMPANY FINANCIAL & OPERATING GROWTH OVERVIEW HIGHLIGHTS PLANS 23
Slide 24: 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 six asset management companies • The SEC also granted COL a license to distribute the mutual funds of S
Slide 25: Updates on Growth Plans
Updates on Growth Plans DISTRIBUTION OF THIRD PARTY FUNDS • New service will allow COL to expand its market base • To create a more recurring source of revenues as COL receives a share of management fees 25
Slide 26: Updates on Growth Plans
Updates on Growth Plans ASSET ALLOCATION OF CIS MONEY MARKET BACKGROUND ON CIS IN THE FIXED INCOME PHILIPPINES BALANCED FUNDS Total size: Php757 Bil as of end EQUITY FUNDS 2013. Mutual funds account for 17% 27% while UITFs account for 73%. Bulk (Php352 Bil or 46.5%) 8% 46% allocated to money market
Slide 27: Updates on Growth Plans
Updates on Growth Plans SIZE OF ASSET MANAGEMENT CO.S WITH MOA (In PhpMil, as of end 2013) AUM Share of CIS Mkt Asset Mgmt Co. Non Money Non Money Total Total Mkt Mkt BPI (UITF) 155.50 94.70 20.6% 23.4% Sun Life 41.11 40.81 5.4% 10.1% ATR KimEng 10.40 10.40 1.4% 2.6% BDO- Trust 227.26 53.58 30.0% 13
Slide 28: Thank You
Thank You COL FINANCIAL