Col Financial Group, Inc. · PSE:COL
Col Financial — FY2021 Earnings Presentation
25 slides from Col Financial's earnings presentation, 2021
Slide 1: COL Investor Presentation 2021
2021 COL Investor Presentation 1
Slide 2: Company Overview
Company Overview Established and The leading and fastest- licensed by the SEC in growing online stockbroker 1999 in the Philippines Focused on tapping Founder (Edward K. Lee) the underserved retail retains a 21.7% stake investor base in the and actively manages stock market the Company 2
Slide 3: Outstanding shares, free float and market cap
4.76 Bil 21.7 Outstanding Shares % Edward K. Lee Free Float 1.16 Bil 24.3% Market Cap* Php19.8 Bil Public *As of end 2021 14.9% Daiwa Securities Group 25.2% Other Directors & Officer 13.9% Alexander C. Yu 3
Slide 4: 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 4
Slide 5: COL Milestones
COL Milestones 1999 2000-2001 2006 2008 2010 Began operating the Listed in the PSE at Launched the COL Launched the full- Licensed by the SEC COL PH online Php0.136/sh service agency and Easy Investment to conduct business trading platform advisory team called Program (EIP) as a broker and the COL P
Slide 6: COL Milestones
COL Milestones 2012 2014 2015 2017 Officially changed Granted a Mutual Launched COL Fund Japan’s Daiwa corporate name to Fund Distributor Source - the first fund Securities Group, Inc. COL Financial License by the SEC supermarket in the acquired a 14.9% Group Inc. country stake in the company 6
Slide 7: The Biggest Philippine Based Stockbroker
The Biggest Philippine Based Stockbroker 2021 Rank Broker Name 2021 Value Turnover (Php Bil) % of Total 1 COL Financial Group, Inc. 381.6 8.6 2 CLSA Philippines Inc 216.3 6.5 3 UBS Securities Philippines Inc 198.2 6.2 4 BDO Securities Corp 197.6 6.2 5 Mandarin Securities Corp 131.6 5.8 6 Credit Suis
Slide 8: The Biggest Philippine Based Stockbroker
The Biggest Philippine Based Stockbroker Total Accounts (as of 2020) Total Online Accounts (as of 2020) 69% 31 % 53% 47% Others Others COL COL Source: PSE 8
Slide 9: Bulk of Revenues Generated from Commissions and Interest
Revenue Breakdown 2021 4.2% Others 1.7% Trailer Fees Bulk of Revenues 14.3% Interest Generated from Commissions and Interest 79.7% Commissions from both Philippines and HK account for 79.7% of revenues. Commissions Interest income from margin loans and cash placements account for 14.3% of revenues.
Slide 10: Key Operating Highlights
Key Operating Highlights Positives Negatives 1. Record revenues and profits 1. Low interest rates hurt interest income 2. Maintained rank as the country’s number one stockbroker 10
Slide 11: 2021 Net Income +38% Y/Y
Pro Forma Consolidated Income Statement (Php Mil) Change 2021 Net Income 2020 2021 Amount % Income +38% Y/Y Commissions 793.9 1,013.0 219.1 27.6% Interest 246.4 182.1 (64.4) -26.1% 2021 net income jumped by 37.7% to a record Trailer Fees 17.3 21.5 4.2 24.5% Php581.5 Mil, exceeding the pre-pandemic p
Slide 12: Most Revenue Items Up
Pro Forma Revenue Breakdown (Php Mil) Most Revenue Items Up 2020 2021 Amount Change % Revenues grew by 19.8% led by the significant increase Revenue Breakdown in commissions and other income. Commission 793.9 1,013.0 219.1 27.6% PH-Self-directed 700.7 903.4 202.7 28.9% Commission revenues increased
Slide 13: Most Revenue Items Up
Pro Forma Revenue Breakdown (Php Mil) Most Revenue Items Up 2020 2021 Amount Change % Revenue Breakdown Self-directed clients continued to account for the lion’s share of total commission revenues at 89.6%. Commission 793.9 1,013.0 219.1 27.6% PH-Self-directed 700.7 903.4 202.7 28.9% PH- Agency & ad
Slide 14: Manageable Fixed Expenses
Pro Forma Breakdown of Expenses (Php Mil) Change Manageable Fixed 2020 2021 Amount % Trading Related Expenses Expenses Commission expenses 27.7 36.3 8.6 31.0% Agency & Advisory 25.1 35.0 9.9 -60.4% Operating expenses increased by 5.5%, largely driven by CROs & Others 2.6 1.3 -1.3 -151.4% the 18.9% i
Slide 15: ROAE Jumped to 29.6%
ROAE Jumped to 29.6% Selected Financial Ratios ROAE improved from 29.6% to 23.6%. 2020 2021 The improvement in profitability was driven by an increase in margins and higher asset turnover. Operating Profit Margin 54.3% 59.8% EBITDA Margin 61.5% 64.6% Margins improved due to the strong growth in reve
Slide 16: Still Number 1
Comparative Performance (COL vs. PSE) Change Still Number 1 2020 2021 Amount % PSE Ave. Daily T/O (PhpMil) 7,348.2 9,002.1 1,653.9 22.5% COL’s average daily turnover grew strongly by 26.1% to Php1.5 Bil in 2021, outpacing the COL Ave. Daily T/O (PhpMil) 1,219.9 1,538.6 318.7 26.1% 22.5% growth in th
Slide 17: Strong Balance Sheet
Strong Balance Sheet Pro Forma Consolidated Balance Sheet (Php Mil) Change Cash & cash equivalents decreased by 70.0% to Php1.7 12/31/20 12/31/21 Amount % Bil. This was largely due to the placement of more funds in investment securities to earn higher yields. Cash & cash equivalents 5,782.4 1,733.5
Slide 18: Significant Customer Growth
Client Base +11.9% 489,154 Significant 437,048 Customer Growth 332,098 292,401 247,609 COL’s client base grew by 11.9% Y/Y to 489,154 as of end 2021. Average monthly additions during the past 12 months reached 4,342. 2017 2018 2019 2020 2021 19
Slide 19: Client Equity up largely on Higher Deposits
Client Equity (Php Mil) +4.8% Client Equity up largely 107,346 112,556 on Higher Deposits 73,102 72,673 72,398 Client equity was up 4.9% Y/Y to Php112.6 Bil as of end 2021. Net new cash inflows from retail clients reached Php7.7 Bil during the past twelve months and was responsible for the increase
Slide 20: Margin Loans Up
Ave Daily Margin Loans (Php Mil) +38.7% Margin Loans Up 822 719 Average daily margin loans increased by 38.7% to Php719 Mil Y/Y. 617 536 518 As of end 2021, the total number of approved margin accounts was 1,226, higher by 1.4% compared to the same period last year. Only 32.1% of approved margin acc
Slide 21: COL Accounted for 3.7% of Industry Equity Fund Sales
2021 Net Sales (in Php Mil, Acc to Type of Fund) Net Sales Industry COL % Share COL Accounted for Money Market 50,773.2 -10.5 0.0% 3.7% of Bond -1,543.0 -11.6 0.8% Industry Equity Balanced -397.1 15.6 -3.9% Fund Sales Equity fund 4,820.3 178.6 3.7% Feeder fund* 4,804.3 75.2 1.6% Total 58,457.6 247.4
Slide 22: Average AUA Up
23 average AUA on a Y/Y basis. Trailer fees up due to increase in Average AUA Up 2Q15 19.1 3Q15 132.6 4Q15 319.7 1Q16 513.0 2Q16 753.6 3Q16 1,003.8 4Q16 1,174.0 1Q17 1,328.4 Source: PIFA, COL estimates 2Q17 1,529.1 3Q17 1,766.5 4Q17 2,028.5 1Q18 2,238.8 2Q18 2,332.4 3Q18 2,435.6 4Q18 2,606.3 1Q19 2,
Slide 23: Growing Number, but Lower Percentage of Clients Owned MFs
24 10,000.0 20,000.0 30,000.0 40,000.0 50,000.0 60,000.0 70,000.0 0.0 5,244 3.4% 7,526 4.6% 11,859 6.9% 13,690 7.5% 16,599 8.5% 18,317 8.9% 20,493 9.5% 22,257 9.9% 24,739 10.4% of Clients Owned MFs 27,375 11.1% 30,421 11.6% MF Investors 32,675 12.0% 34,847 12.3% 36,349 12.4% 38,069 12.5% 39,880 12.8
Slide 24: Growing Number, but Lower Percentage of Clients Own MFs
25 10,000.0 20,000.0 30,000.0 40,000.0 50,000.0 60,000.0 70,000.0 0.0 SOURCE: COL ESTIMATES 5,244 3.4% 7,526 4.6% 11,859 6.9% 13,690 7.5% 16,599 8.5% 18,317 8.9% 20,493 9.5% 22,257 9.9% 24,739 10.4% 27,375 11.1% MF Investors 30,421 11.6% 32,675 12.0% 34,847 12.3% 36,349 12.4% 38,069 12.5% % of Total
Slide 25: 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