Col Financial Group, Inc. · PSE:COL
Col Financial — Q1 2020 Earnings Presentation
29 slides from Col Financial's earnings presentation, 2020
Slide 1: COL Financial 1Q20 Investor Presentation
COL FINANCIAL 1020 WWUESTOR PRESENTATION
Slide 2: Key Highlights: Company Overview
Company Financial & Growth Overview Operating Plans Highlights Key Highlights 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 21.7% stake and actively manages the Company 3
Slide 4: Ownership, Outstanding Shares and Market Cap
EDWARD K. LEE 21.7% DAIWA SECURITIES GROUP ALEXANDER C. YU 24.6% OTHER DIRECTORS & OFFICER PUBLIC 14.9% Outstanding 476.0Mil Shares 24.8% 14.1% Free Float 116.9Mil Market Cap* Php7.4Bil *AS OF END MARCH 2020 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: The Biggest Philippine Based Broker
The Biggest Philippine Based Broker 1Q20 VALUE 1Q20 RANK BROKER NAME % OF TOTAL TURNOVER (PHBIL) 1 CLSA PHILIPPINES, INC. 77.1 9.6% 2 UBS SECURITIES PHILIPPINES, INC. 65.0 8.1% 3 SALISBURY BKT SECURITIES CORP. 59.7 7.5% 4 MACQUARIE CAPITAL SECURITIES (PHIL), INC. 49.6 6.2% 5 J.P. MORGAN SECURITIES P
Slide 7: Corporate Milestones
® Received SEC license to conduct business as a broker and seller of securities in the Philippines CORPORATE MILESTONES * Listed in the PSE at Php1.36 with the ticker COL © Changed its © Received PSE corporate name to COL Financial © Received Group, Inc. SEC license to distribute Mutual Funds ® Annu
Slide 8: Bulk of Revenues Generated from Commissions & Interest
REVENUE BREAKDOWN Bulk of Revenues 2.2% Trailer Fees Generated from Commissions & Interest 39.9% Interest COL’s Philippine operations account for 98.7% of revenues. 1.3% HK Com Commissions from both Philippines and HK 9.5% PH Com-Agency & Advisory account for 58.6% of revenues. Interest income from
Slide 9: Key Highlights: Financial & Growth Highlights
Company Financial & Growth Overview Operating Plans Highlights Key Highlights 9
Slide 10: Key Highlights: Positives and Negatives
Key Highlights Positives Negatives Commission revenues, market share Interest income registered steep improved Q/Q drop Trailer fees declined Sustained growth in new accounts Client equity fell steeply Sustained positive net new flow Profits fell by 55.6% 10
Slide 11: 1Q20 Net Income -55.6% Y/Y
CONSOLIDATED INCOME STATEMENT (IN PHP MIL) 1Q20 Net Income -55.6% Y/Y CHANGE 1Q19 1Q20 AMOUNT % Income 1Q20 net income fell by 55.6% to Php80.2 Mil. Commissions 171.5 115.6 (56.0) -32.6% Interest 159.6 79.8 (79.7) -50.0% Consolidated revenues were down 41.0% to Php198.1 Mil Trailer Fees 4.2 4.0 (0.2
Slide 12: Lower Expenses
Lower Expenses BREAKDOWN OF EXPENSES (IN PHPMIL) CHANGE 1Q19 1Q20 Operating expenses fell by 8.9%, largely pulled down by AMOUNT % the 53.2% drop in trading related expenses. Trading Trading Related Expenses related expenses fell due to lower trading volumes and the Commission expenses 16.0 5.6 -10.
Slide 13: Market Weakness and Lower Interest Rates Pull Down Revenues
REVENUE BREAKDOWN (IN PHPMIL) Market Weakness and Lower Interest Rates Pull Down CHANGE 1Q19 1Q20 AMOUNT % Revenues Philippines Commission 168.2 113.1 (55.1) -32.8% Self-directed 134.2 94.3 (39.9) -29.7% Revenues from Philippine operations decreased by 41.6% Agency & advisory 33.9 18.7 (15.2) -44.8%
Slide 14: Market Weakness and Lower Interest Rates Pull Down Revenues
REVENUE BREAKDOWN (IN PHPMIL) Market Weakness and Lower Interest Rates Pull Down CHANGE 1Q19 1Q20 AMOUNT % Revenues Philippines Commission 168.2 113.1 (55.1) -32.8% Self-directed 134.2 94.3 (39.9) -29.7% Trailer fees fell by 4.3% to Php4.0 Mil. Trailer fees fell as Agency & advisory 33.9 18.7 (15.2)
Slide 15: Market Share Falls
Market Share Falls COMPARATIVE PERFORMANCE (COL VS. PSE) CHANGE 1Q19 1Q20 AMOUNT % COL’s average daily turnover fell 30.7% Y/Y to Php716.6 Mil in 1Q20, faster than the 16.7% drop in the PSE’s PSE Ave. Daily T/O (PhpMil) 8,015.5 6,676.6 (1,338.9) -16.7% average daily turnover. COL Ave. Daily T/O (Php
Slide 16: ROAE Down but Still Healthy at 17.9%
ROAE Down but Still Healthy at 17.9% SELECTED FINANCIAL INDICATORS CHANGE 1Q19 1Q20 AMOUNT % 1Q20 operating profits were down 54.6% to Php106.9 Mil. Operating Profits Philippines 242.4 111.7 (130.7) -53.9% Operating profits from the Philippines were down by Hong Kong (6.8) (4.8) 2.0 29.9% 53.9% to P
Slide 17: Strong Balance Sheet
Strong Balance Sheet CONSOLIDATED BALANCE SHEET (IN PHPMIL) CHANGE 12/31/19 3/31/20 AMOUNT % Cash & cash equivalents increased by 13.1% to Php9.7 Bil largely due to strong net new flows from clients. Cash & equivalents 8,563.7 9,681.5 1,117.7 13.1% Receivables 864.3 698.3 (165.9) -19.2% Net new flow
Slide 18: Sustained Customer Growth
CLIENT BASE +12.6% Sustained Customer Growth 341,703 400,000 332,098 303,446 292,401 350,000 COL’s client base grew by 12.6% Y/Y to 341,703 as of end March 2020. 247,609 300,000 205,039 Average monthly additions during the past 12 250,000 162,330 months remained strong at 3,188. 200,000 150,000 100,
Slide 19: Poor Market Conditions Pull Down Client Equity
CLIENT EQUITY (PHP MIL) -27.2% Poor Market Conditions 90,000 76,848 73,102 72,673 72,398 80,000 Pull Down Client Equity 70,000 59,290 55,910 Client equity was fell 27.2% Y/Y to Php55.9 Bil as of 60,000 46,894 end March 2020. 50,000 Although net new flows from retail clients remained 40,000 strong at
Slide 20: Margin Loans Down
AVE DAILY MARGIN LOANS (PHP MIL) -17.7% Margin Loans Down 1,200 971 Average daily margin loans decreased by 17.7% to 1,000 Php518 Mil Y/Y. 822 800 As of end March 2020, the total number of approved 629 617 margin accounts was 1,084, down 5.2% compared to 596 536 600 518 end March 2019. 26.9% of appr
Slide 21: Key Highlights: Operating Plans
Company Financial & Growth Overview Operating Plans Highlights Key Highlights 21
Slide 22: Pro Active Growth Plans
Pro Active Growth Plans Maintain leadership by focusing on our consistent, long-term strategic goals Priorities Statement Strategies • Expand digital efforts across the different marketing channels to generate leads and engage clients #1. Continue to be the leading asset gatherer of o Online educati
Slide 23: Fund Source's Performance Since Launch
Fund Source’s Performance Since Launch NET SALES VS AUA (IN PHPMIL, ACC TO TYPE OF FUND) TYPE OF FUND TOTAL SALES** % TOTAL TOTAL AUA* % TOTAL Money Market 186.4 5.8% 205.7 8.3% Bond Fund 226.7 7.0% 238.9 9.7% Balanced Fund 178.0 5.5% 146.1 5.9% Equity Fund 2,643.1 81.7% 1,879.9 76.1% Total 3,234.2
Slide 24: Positive Net Sales Despite Challenging Environment
Positive Net Sales Despite Challenging Environment 1Q20 NET SALES (IN PHPMIL, ACC TO TYPE OF FUND) TYPE OF FUND INDUSTRY* COL Money Market 10,098.7 -15.5 Bond Fund 1,034.2 20.9 Balanced Fund -429.7 1.5 Equity Fund 1,005.0 103.5 Total 11,708.2 110.4 *FUNDS AVAILABLE IN COL FUND SOURCE ONLY 24
Slide 25: Positive Net Sales Despite Challenging Environment
Positive Net Sales Despite Challenging Environment 1Q20 NET SALES (IN PHPMIL, ACC TO FUND HOUSE) TYPE OF FUND INDUSTRY* COL % SHARE ALFM 119.0 37.5 31.6% ATR -51.1 3.7 FAMI -101.6 7.2 5.2% Phil Equity 362.1 58.6 14.8% PAMI 1,523.3 -13.0 SLAMCI 9,468.3 16.4 0.2% Total 11,320.1 110.4 1.0% *FUNDS AVAIL
Slide 26: Average AUA Down
AVERAGE AUA (NON-MONEY MARKET FUNDS ONLY, IN PHP MIL) 3,500.0 2,949.2 2,905.8 2,879.3 2,769.0 2,630.3 2,606.3 3,000.0 2,435.6 2,332.4 2,238.8 Average AUA Down 2,500.0 2,028.5 1,766.5 2,000.0 1,529.1 1,328.4 1,174.0 1,500.0 Trailer fee down due to significant drop in average 1,003.8 AUA on a Y/Y and
Slide 27: Growing Number & Percentage of Clients Own MFs
Growing Number & Percentage of Clients Own MFs MF Investors % of Total Clients 13.5% 50,000.0 16.0% 13.5% 13.2% 12.8% 12.5% 45,000.0 12.4% 12.3% 14.0% 12.0% 11.6% 11.1% 40,000.0 10.4% 12.0% 9.9% 35,000.0 9.5% 8.9% 8.5% 10.0% 30,000.0 7.5% 6.9% 25,000.0 8.0% 46,168 44,682 42,913 39,880 38,069 20,000.
Slide 28: ft wvicher life
© COL FINANCIAL ft wvicher life
Slide 29: 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