Col Financial Group, Inc. · PSE:COL
Col Financial — Q1 2019 Earnings Presentation
27 slides from Col Financial's earnings presentation, 2019
Slide 1: COL Financial Investor Presentation
101 COL FINANCIAL INVESTOR PRESENTATION \
Slide 2: Key Highlights
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 21.2% stake and actively manages the Company 3
Slide 4: Shareholder Structure and Market Cap
EDWARD K. LEE 21.2% DAIWA SECURITIES GROUP ALEXANDER C. YU 25.8% OTHER DIRECTORS & OFFICER PUBLIC 14.9% Outstanding 476.0 million Shares 24.5% 13.6% Free Float 122.8 million Market Cap* Php9.0 billion *AS OF END MARCH 2019 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: 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 © COL FINANCL ‘App on the [0S platform + Launched the COL Mobile App * COL IPO for PSE a * Opened an Investor Center
Slide 7: Bulk of Revenues Generated from Commissions & Interest
REVENUE BREAKDOWN Bulk of Revenues 2.3% Generated from OTHERS Commissions & Interest COL’s Philippine operations account for 99.0% 47.6% of revenues. 40.0% INTEREST PH-COM SELF-DIRECTED Commissions from both Philippines and HK account for 51.1% of revenues. Interest income from margin loans and cash
Slide 8: Key Highlights
Company Financial & Growth Overview Operating Plans Highlights Key Highlights 8
Slide 9: Key Highlights: Positives and Negatives
Key Highlights Positives Negatives Revenues continue to grow Q/Q Profits down coming from a high base Y/Y Net new flows remain positive and client equity reaches all time high Market share remains strong at 6.5% ROAE remains healthy at 45.6%
Slide 10: Net Income down 13.2% Y/Y
CONSOLIDATED INCOME STATEMENT (IN PHP MIL) CHANGE Net Income down 13.25 Y/Y 1Q18 1Q19 AMOUNT % Income Commissions 260.6 171.5 (89.1) -34.2% 1Q19 net income fell by 13.2% to Php180.4 Mil, Interest 94.4 159.6 65.2 69.1% coming from a high base. Trailer Fees 3.4 4.2 0.8 22.2% Other income 7.2 0.4 (6.8)
Slide 11: Revenues up Q/Q
QUARTERLY REVENUES (IN PHP MIL) Revenues up Q/Q 400 +4.5% 350 Revenues were up 4.5% Q/Q as market 300 sentiment improved. 250 Commissions increased 13.3% Q/Q while 200 interest income grew 24.1% Q/Q. 150 100 Trailer fees were also higher 5.9% Q/Q. 50 0 1Q18 2Q18 3Q18 4Q18 1Q19 Other Income 7.20 5.67
Slide 12: Expenses down 1.2% Y/Y
Expenses down -1.2% Y/Y BREAKDOWN OF EXPENSES (IN PHPMIL) CHANGE 1Q18 1Q19 Expenses decreased by 1.2% Y/Y to Php100.1 Mil. AMOUNT % Trading Related Expenses Trading related expenses were down 30.1% Y/Y to Commission expenses 22.2 16.0 (6.2) -27.9% Php22.1 Mil, due to the 27.9% drop in commission Sto
Slide 13: Philippines & HK Suffer from Lower Revenues
REVENUE BREAKDOWN (IN PHPMIL) CHANGE 1Q18 1Q19 AMOUNT % Philippines & HK Suffer Philippines from Lower Revenues Commission 254.6 168.2 (86.5) -34.0% Self-directed 209.9 134.2 (75.7) -36.1% Agency & advisory 44.7 33.9 (10.8) -24.1% Interest 94.4 159.6 65.2 69.1% Revenues from Philippine operations we
Slide 14: Philippines & HK Suffer from Lower Revenues
REVENUE BREAKDOWN (IN PHPMIL) CHANGE 1Q18 1Q19 AMOUNT % Philippines & HK Suffer Philippines from Lower Revenues Commission 254.6 168.2 (86.5) -34.0% Self-directed 209.9 134.2 (75.7) -36.1% Agency & advisory 44.7 33.9 (10.8) -24.1% Interest 94.4 159.6 65.2 69.1% Interest income increased by 69.1% Y/Y
Slide 15: ROAE Stays Healthy at 45.6%
ROAE Stays Healthy SELECTED FINANCIAL INDICATORS at 45.6% 1Q18 1Q19 AMOUNT CHANGE % Operating Profits 1Q19 operating profits fell by 10.9% Y/Y to Philippines 266.8 242.4 (24.4) -9.1% Php235.6 million, largely hurt by the lower revenues Hong Kong (2.5) (6.8) (4.3) -171.8% of both Philippine and HK op
Slide 16: Strong Balance Sheet
Strong Balance Sheet CONSOLIDATED BALANCE SHEET (IN PHPMIL) CHANGE 12/31/18 3/31/19 AMOUNT % Cash & cash equivalents fell slightly by 3.7% to Cash & equivalents 9,657.4 9,302.2 (355.2) -3.7% Php9.3 Bil as COL made investments in subsidiaries Receivables 811.0 922.9 111.9 13.8% and as clients deploye
Slide 17: Sustained Customer Growth
+16.0% CLIENT BASE 303,446 292,401 Sustained Customer Growth 261,695 247,609 205,039 COL’s client base grew by 16.0% Y/Y to 303,446 as of end March, 2019. 162,330 Average monthly additions for 1Q19 remained 111,827 steady at 3,680. Bulk of the new accounts came from referrals and online searches. 20
Slide 18: Client Equity Up Despite Poor Market Conditions
CLIENT EQUITY (PHP MILLION) +4.7% Client Equity Up Despite Retail Poor Market Conditions 76,848 73,379 73,102 72,398 Institutional 59,290 Client equity rose 4.7% Y/Y to record level of Php76.8 Bil as of end-March 46,894 43,290 Net new flows from retail clients amounted to Php6.0 Bil during the past
Slide 19: Margin Loans Up
AVE DAILY MARGIN LOANS (PHP MILLION) Margin Loans Up +8.7% 1,220 Average daily margin loans increased by 8.7% Y/Y to Php629 Mil. 971 As of end March, the total number of 822 approved margin accounts reached 1,144, down from 1,156 during the same period last 629 596 579 year. 536 29.6% of approved ma
Slide 20: Comparative Performance
Comparative Performance COL VS. PSE Y/Y Q/Q 1Q18 1Q19 4Q18 1Q19 CHANGE CHANGE PSE VALUE T/O 1,041.9 977.9 -6.1% 920.2 977.9 6.3% COL VALUE T/O 96.2 63.0 -34.5% 55.8 63.0 12.9% COL MARKET SHARE 9.2% 6.4% -2.8% 6.1% 6.4% 0.3% PSE RANKING 1 4 - 2 4 - # OF TRANSACTIONS PSE (‘000) 12,779 11,660 -8.8% 9,5
Slide 21: Ranking Returns to Normalized Level
Ranking Returns to Normalized Level 1Q19 VALUE 1Q19 RANK BROKER NAME % OF TOTAL TURNOVER (PHBIL) 1 UBS SECURITIES PHILIPPINES, INC. 78.1 8.0% 2 CLSA PHILIPPINES, INC. 76.2 7.8% 3 CREDIT SUISSE SECURITIES (PHIL), INC. 69.9 7.2% 4 COL Financial Group, Inc. 63.0 6.5% 5 MANDARIN SECURITIES CORP. 57.0 5.
Slide 22: MF Business (Share of Total COL Business)
MF Business (Share of Total COL Business) AUA CLIENT BASE +25.7% Y/Y +25.0% Y/Y 38,069 36,349 5,000.0 45,000 40.0% 14.0% IN PHP MIL 4,500.0 30,421 40,000 3,055.1 35.0% 4,000.0 12.0% 2,845.8 35,000 30.0% 2,430.3 3,500.0 20,493 10.0% 30,000 25.0% 3,000.0 25,000 8.0% 1,483.5 20.0% 12.5% 2,500.0 20,000
Slide 23: AUA Mix as of 1Q19
AUA Mix as of 1Q19 FUND CATEGORY AUA (PHP MIL) % EQUITY INDEX 1,266.9 41.5% EQUITY 1,253.0 41.0% MONEY MARKET 205.4 6.7% BALANCED 167.9 5.5% BOND 162.0 5.3% TOTAL 3,055.1 100.00% 23
Slide 24: Key Highlights
Company Financial & Growth Overview Operating Plans Highlights Key Highlights 24
Slide 25: Pro Active Growth Plans
Pro Active Growth Plans Maintain leadership by focusing on our consistent, long-term strategic goals PRIORITIES STATEMENT STRATEGIES • Expand and develop efficient touch points to educate and guide prospective and existing clients EXPAND CLIENT ACQUISITION #1. To be the leading asset gatherer in the
Slide 26: ft wvicher life
© COL FINANCIAL ft wvicher life
Slide 27: 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