Capital Securities Corp. · TWSE:6005
Capital Securities — Q1 2024 Earnings Presentation
36 slides from Capital Securities's earnings presentation, May 27, 2024
Slide 1: Capital Securities Corporation Institutional Investor Conference
Capital Securities Corporation Institutional Investor Conference May 2024 0
Slide 2: Disclaimer
Disclaimer The information (except numbers in financial statements) contained within the document has not been audited or reviewed by any accountant or independent third party. Capital Securities Corporation (the Company) makes no guarantee or warranties as to the accuracy, completeness or correctne
Slide 3: Presentation Outline
Presentation Outline Company Profile Operation Overview Prospect and Outlook Sustainability Development & Capital Securities’ Practices 2
Slide 4: Company Profile
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Slide 5: Shareholder Structure
Shareholder Structure Data as of April 29, 2024 Financial Government institutions agencies 4.74% 1.81% Foreign institutions and individuals 16.96% Other juristic persons 47.38% Individuals 29.11% 4
Slide 6: Basic Information
Basic Information Stock code: 6005 Paid-in capital: NTD21.709bn Number of branches in Taiwan: 53 Number of employees: 1,851 FEB20 Paid-in capital of NTD21.709bn Listed on TPEx in 1995 Paid-in capital of NTD4.08bn Listed on TWSE in 2005 Paid-in capital of NTD13.64bn Established in 1988 Paid-in capita
Slide 7: Deployment in Asia
Deployment in Asia Chengdu Shanghai TEL：86 28 6555 2888 TEL：86 21 5888 7188 FAX：86 28 6555 2999 FAX : 86 21 5888 2929 Add：Units 408-410,4F,Poly Add：18F., New Shanghai Center Tower C,No.1,Jinxiu International Tower, No. 360 Road, Wuhou District Pudong Nan Road, Chengdu, P.R.China Shanghai, P.R.China
Slide 8: Non-operating Investments
Non-operating Investments 7
Slide 9: Non-operating Investments (continued)
Non-operating Investments (continued) Unit：1000 Net income or Net income or Book value as of Book value as of Region Name Currency Paid-in capital loss for loss for Mar 31, 2024 Apr 30, 2024 JAN~MAR24 JAN~APR24 Taiwan Capital Futures Corp. NTD 2,104,376 7,490,962 267,176 7,625,094 383,440 Capital In
Slide 10: Organizational Structure
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Slide 11: Operation Overview
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Slide 12: Financial Data Over the Past Three Years
Financial Data Over the Past Three Years (NTD’000) Item 2021 2022 2023 JAN~MAR24 Consolidated net income 6,227,509 1,846,051 5,108,776 1,608,826 before tax Consolidated net income 5,461,649 1,179,016 4,570,993 1,473,515 Net income attributable to shareholders of the parent 5,249,590 840,040 4,131,51
Slide 13: Consolidated Balance Sheet (summary)
Consolidated Balance Sheet (summary) (NTD’000) Item Mar 31, 2023 Mar 31, 2024 Current assets 183,367,022 269,472,593 Non-current assets 22,172,192 24,163,865 Total assets 205,539,214 293,636,458 Current liabilities 163,220,378 247,027,371 Non-current liabilities 2,020,153 1,728,275 Total liabilities
Slide 14: Consolidated Comprehensive Income Statement (summary)
Consolidated Comprehensive Income Statement (summary) (NTD’000) Item JAN~MAR23 JAN~MAR24 Revenue 2,830,885 4,015,447 Operating expenses and costs 2,060,262 3,023,501 Operating income 770,623 991,946 Other income and expenses 486,877 616,880 Net income before tax 1,257,500 1,608,826 Income tax expens
Slide 15: Earnings Breakdown by Major Business
Earnings Breakdown by Major Business JAN~MAR23 JAN~MAR24 60% 58% 51% 50% 40% 29% 30% 20% 20% 17% 15% 10% 7% 3% 0% Brokerage Proprietary trading & Underwriting & Non-operating Derivatives & Fixed Others investments income 14
Slide 16: Business Performance and Market Ranking
Business Performance and Market Ranking Figures in Market ranking in Item JAN~MAR24 JAN~MAR24 Market share in brokerage 3.47% 9 Market share in margin financing 5.10% 7 Trust business-AUM NTD14.829bn 7 Number of warrants issued 2,951 3 Value of warrants issued NTD23.9bn 2 Value of structured product
Slide 17: Dividend Payout
Dividend Payout Unit: NTD EPS Cash dividend per share 2.50 2.42 2.00 1.90 1.64 1.50 1.11 1.00 1.65 1.33 0.50 1.1 0.39 0.8 0.39 0.00 2019 2020 2021 2022 2023 ※ The distribution of FY23 earnings has been approved by the BoD on March 13, 2024, pending the general shareholder meeting's approval. 16
Slide 18: Capital Adequacy Ratio
Capital Adequacy Ratio Capital adequacy ratio Minimum capital adequacy ratio: 200% 400% 328% 305% 312% 300% 276% 261% 200% 100% 0% 3/31/2023 6/30/2023 9/30/2023 12/31/2023 3/31/2024 17
Slide 19: Ratings
Ratings Fitch Ratings Long-term Issuer Default Rating 2023 (IDR) BBB- National Long-term Rating A(twn) National Short-term Rating F1(twn) Outlook Stable 18
Slide 20: APR24 Operating Results
APR24 Operating Results Unit: NTD’000 Entity APR24 JAN~APR24 Net income before tax 433,300 1,845,810 Net income 348,475 1,693,223 EPS (NTD) 0.16 0.78 Consolidated APR24 JAN~APR24 Net income before tax 510,197 2,106,963 Net income 399,013 1,860,468 ※ Unaudited 19
Slide 21: JAN~APR24 Earnings Breakdown by Major Business
JAN~APR24 Earnings Breakdown by Major Business JAN~APR24 90% 83% 70% 50% 28% 30% 8% 10% -10% -19% -30% Brokerage Proprietary trading & Underwriting & Others Non-operating Derivatives & Fixed investments income ※ Unaudited 20
Slide 22: Business Performance and Market Ranking
Business Performance and Market Ranking Figures in Market ranking in Item JAN~APR24 JAN~APR24 Market share in brokerage 3.47% 10 Market share in margin financing 5.09% 7 Trust business-AUM NTD15.302bn 7 Number of warrants issued 4,192 3 Value of warrants issued NTD32.8bn 2 Value of structured produc
Slide 23: Prospect and Outlook
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Slide 24: Business philosophy: Our vision, Our belief
Business philosophy Our vision • To create long-term and rewarding partnerships with our clients by offering high value-added financial services which exceed client expectations Our belief • The Capital Group in Chinese means "benefit for many" which embodies our commitment to public interests and c
Slide 25: Business Development Plans
Business Development Plans Strategy 3 Strategy 4 Strategy 2-1 Seeking At Your Strategy 5-8 Strategy 5-1 Strategy 2-8 Brokerage Dept.- Common Sustainable Set up ESG Goods checks Service development Information focus on core Good business transformation Platforms Strategy 2-2 Strategy 5-7 Strategy 2-7
Slide 26: List of Awards
List of Awards Won 5 Prizes in the 14th Call (Put) Warrants Issuer Competition of Economic Daily: “King of Performance Award” “Warrant Sales Promotion Award”: Taichung Branch & Tongta Branch “Warrant Sales Progress Award”: Chongde Branch & Xisong Branch Awarded “Excellent Blood Donation Organization
Slide 27: Sustainability Development & Capital Securities' Practices
Sustainability Development & Capital Securities’ Practices 26
Slide 28: Why Do We Promote Sustainable Development?
Why Do We Promote Sustainable Development? “Sustainable development is the development that meets the needs of the present without compromising the ability of future generations to meet their own needs,” according to the Our Common Future Report released on the 42nd General Assembly of the United Na
Slide 29: Sustainable Development Goals (SDGs)
Sustainable Development Goals (SDGs) The UN has proposed the 2030 Sustainable Development Agenda in 2015 with 17 Sustainable Development Goals (SDGs) that are key indicators of global sustainable development. These goals serve as indispensable indicators for the international community. As they are
Slide 30: Sustainable Development Practices
Sustainable Development Practices Greenhouse Gas Inventory and Verification Status 2023/08 2023/10 2024/02 2024/03 2024/04 2024/05 2027/05 • GHG inventory • Data collection • Proposing improvement • External GHG training for from subsidiaries measures after internal inventory verification subsidiari
Slide 31: Sustainable Development Practices (continued)
Sustainable Development Practices (continued) Social Responsibility • 2024.03 We turned off all lights for 1 hr & planted trees for the World Earth Day. • 2024.05 We have long cared about children’s education in rural areas. For the 11th year this year, we implemented the “Loves of Reading” campaign
Slide 32: Sustainable Development Practices (continued)
Sustainable Development Practices (continued) Social Responsibility • 2024.03 As a sports-loving enterprise certified by the Sports Administration, we have supported sports events all over Taiwan for years. Recently, we have partnered with the professional basketball team TSG GhostHawks for a series
Slide 33: Sustainable Development Practices (continued)
Sustainable Development Practices (continued) Social Responsibility • 2024.05 With our green procurement model, we prioritize buying domestic products to minimize carbon emissions in the shipping process. For example, we bought carnations from Tianwei Township, Changhua County, as a gift for all our
Slide 34: Sustainable Development Practices (continued)
Sustainable Development Practices (continued) Social Responsibility & Corporate Governance • 2024.05 Two-day executive consensus camp on leadership in adversity & ways to experience inconveniences associated with disability and advocate for disability rights • Our three independent directors and sen
Slide 35: Recognized for Sustainable Development and Corporate Governance
Recognized for Sustainable Development and Corporate Governance Selected as a constituent of FTSE4Good TIP Taiwan ESG Index Selected as a constituent of FTSE4Good Emerging Index Selected as a constituent of TWSE RA Taiwan Employment Creation 99 Index Ranked among the top 21%~35% in the 2023 Corporat
Slide 36: Thank you
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