COL Financial Group, Inc. · PSE:COL
COL Financial — FY2013 Earnings Presentation
39 slides from COL Financial's earnings presentation, Apr 16, 2014
Slide 1: In the Business of Trust. FY13 Results
IN THE BUSINESS OF TRUST. FY13 RESULTS COL FINANCIAL Pin OO? ROM ES
Slide 2: Investor Presentation Highlights: Company Overview
Investor Presentation Highlights COMPANY FINANCIAL & OPERATING GROWTH OVERVIEW HIGHLIGHTS OUTLOOK 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 44.7% 19.5% EDWARD K. LEE ALEXANDER L. YU OTHER DIRECTORS & OFFICER PUBLIC 13.4% OUTSTANDING SHARES 468.7Mil FREE FLOAT 209.4Mil MARKET CAP* Php7.9Bil *AS OF END 2013 22.5% 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 by Accounts
Leading and Fastest Growing Online Stockbroker in the Philippines In Terms of Numbers of Accounts 2012 Total Accounts % of Total Broker Name % Change Rank 2011 2012 Accounts Online 1 COL Financial 27,969 46,444 66.1% 59.4% 2 BPI Securities 16,543 19,721 19.2% 25.2% 3 First Metro 4,217 6,638 57.4% 8.
Slide 7: Leading Online Stockbroker by Value Turnover
Leading and Fastest Growing Online Stockbroker in the Philippines In Terms of Numbers of Accounts Rank Value TO (PhpBil) % of No. of Trades (’000) No. of Broker Online Value No. of % % Online Name 2011 2012 Value 2011 2012 TO Trades Change Change Transactions TO COL 1 1 121.9 150.4 23.3% 76.8% 1,242
Slide 8: Also Amongst the Biggest Philippine-Based Brokers
Also Amongst the Biggest Philippine-Based Brokers 2013 2013 Broker Name Value % of Total Rank Turnover 1 Deutsche Regis Partners Inc. 563,960 11.07 2 UBS Securities Phil. 539,383 10.59 3 CLSA Phils. Inc 470,214 9.23 4 Maybank ATR KimEng Securities, Inc. 406,059 7.97 5 Macquarie Securities (Phil), In
Slide 9: Corporate Milestones
FEBRUARY 2012 Launched the Relationship JANUARY 2008 Manager services for Received the PSE Outstanding high value customers. Domestic IPO Award for 2006 and special recognition for Active MARCH 2012 Investor Educaton. COL was SEC approves the change MARCH 2001 pee pe lis as ie #1 in the corporate na
Slide 10: Bulk of Revenues Generated From Philippine Operations
Bulk of Revenues Generated From Philippine Operations REVENUE BREAKDOWN 0.2% OTHERS COL’s Philippine operations account for 94.0% of revenues, while its HK 26.8% INTEREST operations account for the balance. 6.0% HK COM Commissions from both Philippines and HK account for 72.9% of revenues. 26.7% PH
Slide 11: Financial & Operating Highlights
Investor Presentation Highlights COMPANY FINANCIAL & OPERATING GROWTH OVERVIEW HIGHLIGHTS OUTLOOK 11
Slide 12: Key Highlights
Key Highlights POSITIVE NEGATIVE • Philippine operating profits • HK revenues down Y/Y hit record high • Net profits flat as • Strong growth in new provision for income accounts and net new taxes normalize asset flows 12
Slide 13: 2013 Operating Income up by 13.8% Y/Y
CONSOLIDATED INCOME STATEMENT (IN PHP MIL) 2013 Operating Income FY12 FY13 Change up by 13.8% Y/Y Amount % Income Commissions 463.3 540.5 77.2 16.7% Interest 184.1 198.7 14.6 7.9% Operating income jumped by 13.8% Other income 3.5 1.8 -1.7 -49.0% Y/Y to Php386.0 Mil. Total 650.9 741.0 90.1 13.8% Expe
Slide 14: Philippine Drives Revenue Growth
REVENUE BREAKDOWN (IN PHP MIL) Philippine Drives FY12 FY13 Change Revenue Growth Amount % Philippines Commission 406.5 496.1 89.6 22.0% Revenues rose by 13.8% Y/Y to Self-directed 265.4 298.0 32.6 12.3% Php741.0 Mil driven by the 17.4% growth in Philippine revenues to Agency & advisory 141.1 198.1 5
Slide 15: Philippine Drives Revenue Growth
REVENUE BREAKDOWN (IN PHP MIL) Philippine Drives FY12 FY13 Change Revenue Growth Amount % Philippines Commission 406.5 496.1 89.6 22.0% Self-directed 265.4 298.0 32.6 12.3% Agency & advisory 141.1 198.1 57.0 40.4% Commission from HK fell 21.7% Y/Y to Interest 184.1 198.7 14.6 7.9% Php44.5 Mil as cli
Slide 16: Philippine Commissions Account for Growing Share of Revenues
Philippine Commissions Account for Growing Share of Revenues 0.5% 0.2% REVENUE BREAKDOWN OTHERS 28.3% 26.8% INTEREST HK COM 6.0% 8.7% PH COM-AGENCY & ADVISORY 26.7% PH COM-SELF DIRECTED 21.7% 40.8% 40.2% FY12 FY13 16
Slide 17: ROAE Remained Healthy at 23.6%
ROAE Remained Healthy at 23.6% SELECTED FINANCIAL INDICATORS Change Operating profits rose by 13.9% Y/Y to FY12 FY13 Php386.2 Mil despite the continuous Amount % weakness of HK as the Philippines Operating Profits accounted for a larger share of Philippines 314.7 368.9 54.2 17.2% operations. Hong Ko
Slide 18: Expenses Remained in Check
Expenses Remained in Check BREAKDOWN OF EXPENSES Total expenses grew by only 13.9% Y/Y Change to Php355.0 Mil. FY12 FY13 Amount % Trading related expenses jumped by Trading Related Expenses 25.3% to Php133.1 Mil as the value of Commission expenses 88.9 111.6 22.7 25.5% transactions handled by COL St
Slide 19: Strong and Highly Liquid Balance Sheet
Strong and Highly Liquid Balance Sheet CONSOLIDATED BALANCE SHEET (IN PHP MIL) COL ended 2013 cash rich and debt Change free. 12/31/12 12/31/13 Amount % Total assets grew by 13.6% to Php4.8 Bil Assets largely driven by the 25.3% jump in Cash & equivalents 2,647.3 3,316.1 668.8 25.3% cash. Receivable
Slide 20: Sustained Customer Growth
Sustained Customer Growth CLIENT BASE +78.4% 82,476 COL’s client base grew by 78.7% Y/Y to 82,476 as of end 2013. Average monthly additions accelerated to 3,025 clients during 46,166 2013 from 1,539 clients in 2012. 28,067 15,345 8,716 6,309 2008 2009 2010 2011 2012 2013 20
Slide 21: Sustained Customer Growth
Sustained Customer Growth CLIENT EQUITY +39.5% 47,942 Client equity grew by 39.5% Y/Y to Php47.9 Bil. Net new flow of clients reached 34,359 Php19.7 Bil in 2013, almost triple the Php6.9 Bil booked in 2012. 16,447 11,962 5,122 2,128 2008 2009 2010 2011 2012 2013 21
Slide 22: Margin Loans Recovered
Margin Loans Recovered AVE DAILY +29.3% MARGIN LOANS 1,231 Average daily margin loans 1,102 recovered, increasing by 29.3% Y/Y to Php1.2 Bil. 952 As of end 2013, the total number of approved margin accounts reached 1,046, up 16.2% Y/Y. 573 Meanwhile, 37.2% of approved margin accounts utilized their
Slide 23: Market Leadership Position in Volume of Transactions Maintained
Market Leadership Position in Terms of Volume of Transactions Maintained COL’s average daily turnover grew COMPARATIVE PERFORMANCE (COL VS. PSE) 22.7% Y/Y to Php755.9 Mil. The growth is FY12 FY13 Amount % slower compared to that of the PSE PSE Ave. Daily T/O due to the sharp rise in transactions of
Slide 24: Growth Outlook
Investor Presentation Highlights COMPANY FINANCIAL & OPERATING GROWTH OVERVIEW HIGHLIGHTS OUTLOOK 24
Slide 25: Philippines Interest Rates are Down Significantly
Philippines Interest Rates are Down Significantly 5.7 Interest rates are down significantly, with the average SDA and 91-day T-bill rates falling from 5.7% in 2008 to 2.2% and 0.8% in 2013 respectively. The drop in interest rates was driven by improving government finances, benign inflation, ample d
Slide 26: Equity Investments in an Expansion Phase
Equity Investments in an Expansion Phase Total investments in CIS have increased by a CAGR of 38.2% from 757 2008 to 2013. TOTAL CIS IN THE PHILIPPINES (IN PHP BIL) Growth was driven by the 43.6% and 28.1% CAGR of investments in UITFs MUTUAL FUNDS and mutual funds. 550 UTIFS TOTAL CIS Growth was par
Slide 27: Equity Investments in an Expansion Phase
Equity Investments in an Expansion Phase Value turnover in the PSE also increased by a CAGR of 27.4% from 2008 to 2013. PSE VALUE TURNOVER Although growth in value turnover of local (IN PHP BIL) 1,327.3 investors (25.1% CAGR) was slower than that LOCAL of foreign investors (29.8% CAGR), this was due
Slide 28: Growth Potential Remains Significant
Growth Potential Remains Significant In the Philippines, the amount invested 50.00% in CIS only represents 5.9% of total RETAIL ACCOUNT AS deposits. % OF POPULATION Meanwhile, based on the number of 35.70% retail accounts as a percentage of the population only 0.55% of the population is currently in
Slide 29: Online Brokerage Business in a Secular Uptrend
Online Brokerage Business in a Secular Uptrend 14.9% Market share of online brokers in terms of client base grew from 4.3% in 2008 to SHARE OF ONLINE BROKERS 14.9% in 2012. CLIENT BASE Market share in terms of value turnover VALUE TURNOVER also grew from 2.0% in 2008 to 6.7% in 2012. 6.7% SHARE OF O
Slide 30: Online Brokerage Business in a Secular Uptrend
Online Brokerage Business in a Secular Uptrend BROADBAND INTERNET SUBSCRIBERS 5,447,695 4,934,857 4,339,535 Growth is expected to continue, driven by growing number of internet subscribers in the country. 3,073,378 From 2008 to 2013, the total number of broadband internet subscribers 2,312,856 incre
Slide 31: Highly Geared Towards the Expanding Retail Investors Base
Highly Geared Towards The Expanding Retail Investors Base CLIENT BASE COL is currently the dominant 7% COL 9% market leader among online stockbrokers in the Philippines in BPI terms of number of clients and value FIRST METRO turnover. 25% 59% OTHERS Market share has consistently increased since 2008
Slide 32: Highly Geared Towards the Expanding Retail Investors Base
Highly Geared Towards The Expanding Retail Investors Base PHILIPPINES OPERATING The growth in COL’s market share is PERFORMANCE 696 clearly evident in the strong performance of its Philippine REVENUES 593 operations. OPERATING INCOME 541 From 2008 to 2013, revenues from Philippines increased by a CA
Slide 33: Updates on Growth Plans: MOA with iRemit
Updates on Growth Plans DEC 2013: MOA WITH iREMIT iRemit will assist COL in processing account openings and handle remittances from overseas clients in 23 countries IMPLICATIONS To improve COL’s ability to tap OFs, immigrants and other nationalities which the company was previously unable to serve B
Slide 34: Updates on Growth Plans: About iRemit
Updates on Growth Plans ABOUT iREMIT iRemit is the largest publicly listed non-bank Filipino-owned company engaged in the business of fund transfer and remittance services from abroad into the Philippines. iRemit currently has more than 1,400 remittance outlets consisting of subsidiaries, agents and
Slide 35: Updates on Growth Plans: MOA with BPI and Sun Life
Updates on Growth Plans JAN 2014: MOA WITH BPI ASSET MANAGEMENT & TRUST GROUP (BPI) and SUN LIFE ASSET MANAGEMENT CO. INC. (SLAMCI) COL will now be able to offer its customers various types of professionally managed funds through its platform. IMPLICATIONS To allow COL to address the needs of custom
Slide 36: Updates on Growth Plans: Asset Allocation of CIS
Updates on Growth Plans ASSET ALLOCATION OF CIS BACKGROUND ON CIS IN THE PHILIPPINES MONEY MARKET Total size: Php757 Bil as of end FIXED INCOME 2013 BALANCED FUNDS EQUITY FUNDS Bulk (Php352 Bil or 46.5%) 17% allocated to money market funds 8% BPI and SLAMCI are among the 46% biggest CIS companies in
Slide 37: Market Share and Ranking of SLAMCI
Updates on Growth Plans MARKET SHARE & RANKING OF SLAMCI IN THE MUTUAL FUND INDUSTRY Market Total Number (In PhpMil as of end 2013) SLAMCI Industry Rank Share of Funds Stock Fund 14,648.0 63,926.8 22.9% 1 11 Balanced Fund 18,343.4 33,897.0 54.1% 1* 11 Bond Fund 7,875.5 106,036.4 7.4% 3** 21 Money Ma
Slide 38: Market Share and Ranking of BPI in UITF Industry
Updates on Growth Plans MARKET SHARE & RANKING OF BPI IN THE UTIF INDUSTRY Market Total Number (In PhpMil as of end 2013) BPI Industry Rank Share of Funds Stock Fund 23,795.3 63,001.9 37.8% 2 25 Balanced Fund 11,176.8 26,435.4 42.3% 1 16 Bond Fund 59,726.8 111,232.2 53.7% 1 55 Money Market Fund 60,8
Slide 39: Thank You
Thank You COL FINANCIAL