Col Financial Group, Inc. · PSE:COL
Col Financial — 1H15 Earnings Presentation
27 slides from Col Financial's earnings presentation, August 2015
Slide 1: 1Q15 2Q15 Earnings Mancomm Meeting
1Q15 2Q 2Q 1515 EARNINGS Mancomm Meeting 1
Slide 2: Investor Presentation Highlights: Company Overview
Investor Presentation Highlights COMPANY FINANCIAL & OPERATING GROWTH OVERVIEW HIGHLIGHTS PLANS 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 20.3% stake and actively manages the Company 3
Slide 4: Ownership Structure
Ownership Structure 38.5% 20.3% EDWARD K. LEE ALEXANDER L. YU OTHER DIRECTORS & OFFICER PUBLIC 14.0% OUTSTANDING SHARES 474.7Mil FREE FLOAT 182.9Mil MARKET CAP* Php7.5Bil *AS OF END JUNE 2015 27.1% 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 in the Philippines
Leading and Fastest Growing Online Stockbroker in the Philippines In Terms of Numbers of Accounts. . . 2013 Total Accounts % of Total Broker Name % Change Rank 2012 2013 Accounts Online 1 COL Financial 46,444 83,540 79.9% 64.6% 2 BPI Securities 19,721 25,775 30.7% 19.9% 3 First Metro 6,638 9,995 50.
Slide 7: And in Terms of Value and Volume of Transactions
. . .And in Terms of Value and Volume of Transactions Rank Value TO (PhpBil) % of No. of Trades (’000) No. of Online Value No. of Broker Name % % Online 2012 2013 Value 2012 2013 TO Trades Change Change Transactions TO 1 1 COL Financial 150.4 182.9 21.7% 75.4% 2,664.5 3,262.0 22.4% 78.8% 2 2 BPI Sec
Slide 8: Also Amongst the Biggest Philippine-Based Brokers
Also Amongst the Biggest Philippine-Based Brokers 1H15 Value 1H15 % of Broker Name Turnover Rank Total (PhpBil) 1 Deutsche Regis Partners Inc. 300.45 12.57 2 UBS Securities Philippines Inc. 226.40 9.47 3 CLSA Philippines, Inc. 201.07 8.41 4 Macquarie Capital Securities (Phil), Inc. 152.82 6.39 5 Cre
Slide 9: Corporate Milestones
Corporate Milestones ep = rarfiae 2001-22 Ca ares ae | AUGUST MARCH NOVEMBER AUGUST APRIL MARCH NOVEMBER JAN-NOV Became licensed The COLPH The COL PH Launch of the Launch of the SEC approves Awarded for Signed MOAs by the SEC to online trading Trading platform COL Easy full service the change in the
Slide 10: Bulk of Revenues Generated From Philippine Operations
Bulk of Revenues Generated From Philippine Operations REVENUE BREAKDOWN 100% 3.1% OTHERS COL’s Philippine operations account 90% for 94.4% of revenues, while its HK 80% 28.2% INTEREST operations account for the balance. 70% Commissions from both Philippines and 5.6% HK COM 60% HK account for 68.7% o
Slide 11: Investor Presentation Highlights: Financial & Operating Highlights
Investor Presentation Highlights COMPANY FINANCIAL & OPERATING GROWTH OVERVIEW HIGHLIGHTS PLANS 11
Slide 12: Key Highlights
Key Highlights POSITIVE NEGATIVE • Revenues and earnings up for • Market share dropped both Philippines and HK coming from a high base • Balance sheet remains healthy • Margin lending down • Strong growth in new accounts • Strong start for the funds distribution business 12
Slide 13: 1H15 Net Income Up 23.7%
CONSOLIDATED INCOME STATEMENT (IN PHP MIL) 1H15 Net Income Change Up 23.7% 1H14 1H15 Amount % Income 1H15 net income improved by 23.7% to Commissions 233.4 270.8 37.5 16.1% Php189.6 Mil. Interest 84.2 111.0 26.7 31.7% Consolidated revenues increased by Other income 2.8 12.4 9.6 341.9% 16.7% Y/Y driv
Slide 14: Philippines & HK Performed Strongly During 1H15
REVENUE BREAKDOWN (IN PHP MIL) Philippines & HK Performed 1H14 1H15 Change Strongly During 1H15 Amount % Philippines Commission 215.2 248.7 33.6 15.6% Revenues increased as both Philippine Self-directed 137.8 158.6 20.8 15.1% and HK operations performed strongly. Agency & advisory 77.4 90.1 12.8 16.
Slide 15: ROAE Increased Significantly
ROAE Increased Significantly SELECTED FINANCIAL INDICATORS Change 1H14 1H15 Amount % Operating profits rose by 19.1% Y/Y to Operating Profits Php236.9 Mil. Operating margin likewise improved due to the strength of Philippines 195.4 228.6 33.2 17.0% Philippine and HK operations. Hong Kong 3.6 8.4 4.8
Slide 16: Strong and Highly Liquid Balance Sheet
Strong and Highly Liquid Balance Sheet CONSOLIDATED BALANCE SHEET (IN PHP MIL) COL remained cash rich and debt free. Change 12/31/14 06/30/15 Total assets grew by 10.4% to Php7.0 Bil Amount % largely driven by the 18.5% increase in cash. Cash & equivalents 4,794.3 5,681.7 887.4 18.5% Receivables 1,4
Slide 17: Sustained Customer Growth
Sustained Customer Growth CLIENT BASE +43.8% 138,628 160,000 112,827 140,000 COL’s client base grew by 43.8% Y/Y to 138,628 as of end June 2015. 96,430 120,000 82,476 Average monthly additions for YTD 100,000 remained strong at 4,300. For 2Q15 alone, COL added 12,232 clients. 80,000 46,166 60,000 28
Slide 18: Healthy Retail Client Inflow
Healthy Retail Client Inflow CLIENT EQUITY - 14.9% 46,720 43,290 50,000 40,258 45,000 Retail Client equity fell by 14.9% Y/Y to Php46.7 Bil largely due to the 40,000 Insitutional 32,051 Php12.4 Bil outflow by an 35,000 institutional client who previously 25,650 used COL as a custodian. 30,000 25,000
Slide 19: Margin Loans Drop
Margin Loans Drop AVE DAILY -11.7% MARGIN LOANS 1,330 1,400 1,231 1,220 1,175 Average daily margin loans were 1,102 1,200 952 down 11.7% at Php1.2 Bil. 1,000 As of end 1H15, the total number of approved margin accounts 800 reached 1,131, up 5.3% Y/Y. 573 600 Meanwhile, 28.9% of approved margin accou
Slide 20: Growing Value Turnover
Growing Value Turnover COL’s average daily value turnover COMPARATIVE PERFORMANCE (COL VS. PSE) increased by 18.2%. Change 1H14 1H15 Number of transactions handled also Amount % grew significantly by 39.6% to 2.5 Mil. PSE Ave. Daily T/O 8,139.4 10,043.5 1,904.0 23.4% (PhpMil) Despite this, COL’s mar
Slide 21: Investor Presentation Highlights: Growth Plans
Investor Presentation Highlights COMPANY FINANCIAL & OPERATING GROWTH OVERVIEW HIGHLIGHTS PLANS 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 #1. Continue to be the leading • Set up more investor centers Expand Client asset gatherer in the brokerage • Enter into tie-ups to expand Acquisition industry market
Slide 23: Update on Fund Distribution Business
Update on Fund Distribution Business ASSET MGMT. CO.S AVAILABLE THROUGH “COL FUND SOURCE” AUM (as of end ‘14) Asset Mgmt Co. Value Mkt Share (PhpBil) BPI (ALFM) 80.9 35.5% Sun Life* 46.9 20.6% Philam* 39.9 17.5% Philequity* 31.2 13.7% First Metro Asset Mgmt.* 13.6 6.0% ATR KimEng* 10.7 4.7% Total 22
Slide 24: Update on Fund Distribution Business
Update on Fund Distribution Business TIMELINE ASSETS UNDER ADMINISTRATION* (AUA) May 13 % of Type of Fund AUA (PhpMil) • Opened access to select COL Total clients Money Market 18.84 17.2% • Started seminars and low level Bond Fund 6.30 5.7% communication efforts Balanced Fund 11.60 10.6% Equity Fund
Slide 25: Update on Fund Distribution Business
Update on Fund Distribution Business BETA TESTING PHASE Date May 13 to July 24, 2015 Total net inflow (PhpMil)* 63.61 Total orders 3,091 Ave daily inflow (PhpMil) 1.25 Ave order size (Php) 20,579.75 OPEN ACCESS PHASE Date July 27 to 31, 2015 Total net inflow (PhpMil)* 23.75 Total orders 1,295 Ave da
Slide 26: Thank You
Thank You COL FINANCIAL
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