Slide 1: First 9 Months 2012 Earnings Results
First 9 Months 2012 Earnings Results November 2012 w w w. c o l f i n a n c i a l . c o m
Slide 2: Investor Presentation Highlights
Investor Presentation Highlights 1. Company Overview 2. 9M12 Financial & Operating Highlights w w w. c o l f i n a n c i a l . c o m
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 19.5% stake and actively manages the Company w w w. c
Slide 4: Ownership Structure
Ownership Structure Edward K. Lee 19.5% Public 45.3% Alexander C. Yu 13.9% Other Directors & Officers 21.4% *As of end-September 2012 Outstanding Shares 467.7 Mil Free Float 211.7 Mil Market Cap* Php9.8 Bil w w w. c o l f i n a n c i a l . c o m
Slide 5: Business Objective
Business Objective To be the preferred source of financial services, a trusted provider of guidance and investment ideas and a strong organization committed to delivering great value to its customers. Our goal is to be the Champion of the Filipino investor. w w w. c o l f i n a n c i a l . c o m
Slide 6: Investor Presentation Highlights
Investor Presentation Highlights 1. Company Overview 2. 9M12 Financial & Operating Highlights w w w. c o l f i n a n c i a l . c o m
Slide 7: Key Highlights
Key Highlights • Positives: • Negatives: – Growing client base and equity, – HK continued to suffer from including cash deposits market weakness – Highly liquid & healthy balance – Trading activity of local sheet investors in the PSE fell during – Margin utilization picking up 3Q12, negatively affec
Slide 8: 9M12 Net Income down by 7.6%
9M12 Net Income down by 7.6% COL FINANCIAL GROUP, INC • Consolidated net income fell 7.6% to Php266.5 Mil. Consolidated Income Statement (In PhpMil) • Revenues fell 5.3% as the strength of Philippine Change 9M11 9M12 Amount % operations was not enough to offset the weakness of INCOME HK. Revenues we
Slide 9: Strength of Philippines Not Enough to Offset Weakness of HK
Strength of Philippines Not Enough to Offset Weakness of HK COL FINANCIAL GROUP, INC • Revenues fell by 5.8% to Php483.7 Mil as the strong Revenue Breakdown (In PhpMil) performance of Philippine operations was not enough Philippines 9M11 9M12 Amount % to offset the poor performance of HK operations.
Slide 10: Strength of Philippines Not Enough to Offset Weakness of HK
Strength of Philippines Not Enough to Offset Weakness of HK COL FINANCIAL GROUP, INC • Other income fell by 94.0% to Php1.5 Mil due to the Revenue Breakdown (In PhpMil) absence of trading gains. In 9M11, COL booked substantial trading gains due to numerous stock rights Philippines 9M11 9M12 Amount %
Slide 11: Commissions from the Philippines Account for a Growing Share of Revenues
Commissions from the Philippines Account for a Growing Share of Revenues Sources of Revenues Revenues (According to Geography) 9M11 9M12 9M11 9M12 Commissions 67.4% 71.2% Philippines 81.8% 90.9% Interest 27.6% 28.5% Hong Kong 18.2% 9.1% Other income 5.0% 0.3% Total 100.0% 100.0% Total 100.0% 100.0%
Slide 12: Negatively Affected by Lower Share of Local Investors
Negatively Affected by Lower Share of Local Investors PSE Total Value Turnover (in PhpBil) 9M11 9M12 Growth Local 654.3 726.5 37.6% • During 9M12, trading activities by local investors in the PSE slowed down. This was Foreign 393.4 581.3 51.0% largely responsible for the slower growth in Total 1,047
Slide 13: Operating Profits Pulled Down by Lower Revenues and Higher Costs
Operating Profits Pulled Down by Lower Revenues and Higher Costs COL FINANCIAL GROUP, INC Selected Financial Indicators • Operating profits fell by 19.4% to Php289.1 Mil due to the weak performance of HK and as costs from 9M11 9M12 Amount % Philippine operations increased due to COL’s capacity Opera
Slide 14: Strong and Highly Liquid Balance Sheet
Strong and Highly Liquid Balance Sheet COL FINANCIAL GROUP, INC Consolidated Balance Sheet (In PhpMil) Change • COL's balance sheet remained strong, with high 12/31/11 9/30/12 Amount % ASSETS levels of cash and no debts. Current Assets Cash and cash equivalents 2,188.9 2,179.1 -9.9 -0.5% • Trade pay
Slide 15: Strong and Highly Liquid Balance Sheet
Strong and Highly Liquid Balance Sheet COL FINANCIAL GROUP, INC Consolidated Balance Sheet (In PhpMil) Change • High cash balances of clients coupled with the 12/31/11 9/30/12 Amount % ASSETS slight increase in margin utilization allowed Current Assets COL's to maintain its cash position of Php2.2 C
Slide 16: Sustained Customer Growth: Client Base
Sustained Customer Growth Client Base +66.1% 45,000 42,190 40,000 35,000 30,000 27,306 25,402 25,000 20,000 15,345 15,000 6,309 8,716 10,000 5,000 5,000 1,273 - 2006 2007 2008 2009 2010 2011 9M11 9M12 w w w. c o l f i n a n c i a l . c o m
Slide 17: Sustained Customer Growth: Client Equity
Sustained Customer Growth Client Equity (PhpMil) 35,000 32,591 +105.0% 30,000 25,000 20,000 16,447 15,897 15,000 11,962 10,000 5,000 3,648 2,128 5,122 942 - 2006 2007 2008 2009 2010 2011 9M11 9M12 * End September 2012 balance includes Php6.83 Bil worth of SMC preferred shares of institutional client
Slide 18: Margin Loans Drop, Although Showing Signs of Bottoming Out
Margin Loans Drop, Although Showing Signs of Bottoming Out -21.7% • For the YTD period, average daily margin loans fell by 21.7% to Php934 Mil. • However, on a quarter on quarter basis, average daily margin loans improved by +11.0% 11.0% to Php963 Mil during 3Q12 from Php868 Mil during 2Q12. w w w.
Slide 19: Growing Number of Margin Accounts & Value of Margin Granted Paying Off
Growing Number of Margin Accounts & Value of Margin Granted Paying Off Period 2010 2011 1Q12 2Q12 3Q12 Approved Margin Accounts 690 841 868 882 890 Accounts Utilizing Margin 302 314 287 264 294 % Utilization 43.8% 37.3% 33.1% 29.9% 33.0% Value of Margin Granted (PhpMil) 3,102 4,012 4,105 4,185 4,220
Slide 20: Comparative Performance (COL vs. PSE)
Comparative Performance (COL vs. PSE) 9M11 9M12 Amount % PSE Ave. Daily T/O (PhpMil) 5,536.2 7,068.4 1,532.2 27.7% COL Ave. Daily T/O (PhpMil) 504.6 603.2 98.6 19.5% COL Market Share 4.6% 4.3% PSE Ranking 7 7 No. of Transactions - PSE ('000) 6,292.8 8,569.6 2,276.8 36.2% No. of Transactions - COL ('
Slide 21: THANK YOU
THANK YOU ww.citiseconline.com