Col Financial Group, Inc. · PSE:COL
Col Financial — H1 2020 Earnings Presentation
30 slides from Col Financial's earnings presentation, 2020
Slide 1: COL Financial Investor Presentation 1H20
1H20 y 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 21.7% stake and actively manages the Company 3
Slide 4: Shareholding structure and market cap
EDWARD K. LEE 21.6% DAIWA SECURITIES GROUP ALEXANDER C. YU 24.6% OTHER DIRECTORS & OFFICER PUBLIC 14.9% Outstanding 476.0Mil Shares 24.8% 14.1% Free Float 117.2Mil Market Cap* Php8.4Bil *AS OF END JUNE 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 1H20 VALUE 1H20 RANK BROKER NAME % OF TOTAL TURNOVER (PHBIL) 1 CLSA PHILIPPINES, INC. 145.3 9.2% 2 UBS SECURITIES PHILIPPINES, INC. 124.4 7.9% 3 COL Financial Group, Inc. 110.5 7.0% 4 SALISBURY BKT SECURITIES CORP. 96.2 6.1% 5 CREDIT SUISSE SECURITIES (PHIL), INC.
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 Generated from 0.1% Others 1.8% Trailer Fees Commissions & Interest 33.4% Interest COL’s Philippine operations account for 98.7% of revenues. 1.3% HK Com 7.2% PH Com-Agency & Advisory Commissions from both Philippines and HK account for 64.6% of revenues. Interest
Slide 9: Key Highlights
Company Financial & Growth Overview Operating Plans Highlights Key Highlights 9
Slide 10: Key Highlights: Positives and Negatives
Key Highlights Positives Negatives 2Q commission revenues, market Interest income registered steep share improved significantly decline Record growth in new accounts Trailer fees posted first Y/Y decline Record positive net new flow Client equity fell Y/Y Profits fell 35.6%
Slide 11: 1H20 Net Income -35.6% Y/Y
CONSOLIDATED INCOME STATEMENT (IN PHP MIL) 1H20 Net Income -35.6% Y/Y CHANGE 1H19 1H20 AMOUNT % Income 1H20 net income fell by 35.6% to Php202.3 Mil. Commissions 294.5 300.3 5.7 1.9% Interest 307.5 155.3 (152.2) -49.5% Consolidated revenues were down 24.1% to Php464.1 Mil. Trailer Fees 8.6 7.9 (0.7)
Slide 12: 2Q20 Net Income -8.8% Y/Y
CONSOLIDATED INCOME STATEMENT (IN PHP MIL) 2Q20 Net Income -8.8% Y/Y CHANGE 2Q19 2Q20 AMOUNT % Income 2Q20 net income fell by 8.8% to Php122.1 Mil. Commissions 123.0 184.7 61.7 50.1% Interest 147.9 75.5 (72.4) -49.0% Consolidated revenues were down 3.8% to Php122.1 Mil Trailer Fees 4.4 3.9 (0.5) -11
Slide 13: Lower Interest Rates Pull Down Revenues (1H)
REVENUE BREAKDOWN (IN PHPMIL) Lower Interest Rates Pull 1H19 1H20 CHANGE Down Revenues AMOUNT % Philippines Commission 289.4 294.1 4.7 1.6% Self-directed 231.9 260.8 29.0 12.5% Revenues from Philippine operations decreased by 24.5%. Agency & advisory 57.5 33.3 (24.2) -42.1% Except for commissions, a
Slide 14: Lower Interest Rates Pull Down Revenues (1H)
REVENUE BREAKDOWN (IN PHPMIL) Lower Interest Rates Pull 1H19 1H20 CHANGE Down Revenues AMOUNT % Philippines Commission 289.4 294.1 4.7 1.6% Self-directed 231.9 260.8 29.0 12.5% Trailer fees were down by 7.8% to Php7.9 Mil. Trailer fees Agency & advisory 57.5 33.3 (24.2) -42.1% fell as average assets
Slide 15: Lower Interest Rates Pull Down Revenues (2Q)
REVENUE BREAKDOWN (IN PHPMIL) Lower Interest Rates Pull 2Q19 2Q20 CHANGE Down Revenues AMOUNT % Philippines Commission 121.2 181.0 59.8 49.4% Revenues from Philippine operations decreased by 3.7%. Self-directed 97.6 166.5 68.9 70.5% Although commission and other revenues increased, this Agency & adv
Slide 16: Lower Interest Rates Pull Down Revenues (2Q)
REVENUE BREAKDOWN (IN PHPMIL) Lower Interest Rates Pull 2Q19 2Q20 CHANGE Down Revenues AMOUNT % Philippines Commission 121.2 181.0 59.8 49.4% Self-directed 97.6 166.5 68.9 70.5% Trailer fees were lower by 11.3% to Php3.9 Mil. Trailer fees Agency & advisory 23.6 14.5 -9.0 -38.4% fell as average asset
Slide 17: ROAE Down but Still Healthy at 24.1%
ROAE Down but Still Healthy at 24.1% SELECTED FINANCIAL INDICATORS CHANGE 1H19 1H20 AMOUNT % 1H20 operating profits were down 34.0% to Php273.7 Mil. Operating Profits Philippines 426.1 281.2 (144.9) -34.0% Operating profits from the Philippines were lower by Hong Kong (11.7) (7.5) 4.2 -35.5% 34.0% t
Slide 18: Strong Balance Sheet
Strong Balance Sheet CONSOLIDATED BALANCE SHEET (IN PHPMIL) CHANGE 12/31/19 6/30/20 AMOUNT % Cash & cash equivalents increased by 30.2% to Php11.1 Bil largely due to strong net new flows from clients. Cash & equivalents 8,563.7 11,149.5 2,585.8 30.2% Receivables 864.3 776.3 (88.0) -10.2% Net new flo
Slide 19: Accelerating Customer Growth
CLIENT BASE +22.0% 450,000 381,419 Accelerating Customer Growth 400,000 332,098 312,544 292,401 350,000 COL’s client base grew by 22.0% Y/Y to 381,419 as of 247,609 300,000 end June 2020. 205,039 250,000 Average monthly additions during the past 12 162,330 months reached 5,740. This was largely due
Slide 20: Poor Market Conditions Pull Down Client Equity
CLIENT EQUITY (PHP MIL) -6.7% Poor Market Conditions 90,000 78,694 73,419 73,102 72,673 72,398 Pull Down Client Equity 80,000 70,000 59,290 Client equity was down 6.7% Y/Y to Php73.4 Bil as of 60,000 46,894 end June 2020. 50,000 Although net new flows from retail clients remained 40,000 strong at Ph
Slide 21: Margin Loans Down
AVE DAILY MARGIN LOANS (PHP MIL) -25.9% Margin Loans Down 1,200 971 Average daily margin loans decreased by 25.9% to 1,000 Php456 Mil Y/Y. 822 800 As of end June 2020, the total number of approved 617 616 596 margin accounts was 1,152, up slightly compared to 536 600 1,141 as of end June 2019. 456 H
Slide 22: Growth Plans
Company Financial & Growth Overview Operating Plans Highlights Key Highlights 22
Slide 23: 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 24: 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 217.2 6.1% 238.7 7.7% Bond Fund 262.4 7.4% 283.4 9.1% Balanced Fund 188.2 5.3% 171.9 5.5% Equity Fund 2,871.6 81.1% 2,416.2 77.7% Total 3,539.5
Slide 25: COL Accounts for a Sizeable Portion of Industry Non-Money Market Fund Sales
COL Accounts for a Sizeable Portion of Industry Non-Money Market Fund Sales 1H20 NET SALES (IN PHPMIL, ACC TO TYPE OF FUND) TYPE OF FUND INDUSTRY* COL Money Market 19,430.1 15.4 Bond Fund -648.9 56.5 Balanced Fund -426.4 11.8 Equity Fund 4,019.2 331.9 Total 22,374.1 415.6 *FUNDS AVAILABLE IN COL FUN
Slide 26: COL Accounts for a Sizeable Portion of Some Fund Houses' Net Sales
COL Accounts for a Sizeable Portion of Some Fund Houses’ Net Sales 1H20 NET SALES (IN PHPMIL, ACC TO FUND HOUSE) TYPE OF FUND TOTAL* COL % SHARE ALFM -780.0 124.0 -15.9% ATR 184.8 17.3 9.4% FAMI 26.2 16.8 63.9% Phil Equity 399.8 207.7 51.9% PAMI 2,451.7 -15.1 -0.6% SLAMCI 19,551.0 64.9 0.3% Total 21
Slide 27: 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 3,000.0 2,630.3 2,606.3 2,568.2 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 Trailer fee down due to significant drop in average 1,500.0 1,003.8 AUA on a
Slide 28: Growing Number & Percentage of Clients Own MFs
Growing Number & Percentage of Clients Own MFs MF Investors % of Total Clients 60,000.0 16.0% 13.9% 13.5% 13.5% 13.2% 12.8% 12.5% 12.4% 12.3% 14.0% 12.0% 11.6% 50,000.0 11.1% 10.4% 12.0% 9.9% 9.5% 40,000.0 8.9% 10.0% 8.5% 7.5% 6.9% 30,000.0 8.0% 52,925 46,168 44,682 42,913 4.6% 6.0% 39,880 38,069 36
Slide 29: ft wvicher life
© COL FINANCIAL ft wvicher life
Slide 30: 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