Col Financial Group, Inc. · PSE:COL
Col Financial — Investor Presentation (2018)
31 slides from Col Financial's investor presentation, 2018
Slide 1: COL 2017 Investor Presentation
COL 2017 INVESTOR PRESENTATION
Slide 2: Highlights
Highlights Company Overview Financial & Operating Highlights Growth 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 20.8% stake and actively manages the Company
Slide 4: Ownership Structure
Ownership Structure OUTSTANDING SHARES 476.0Mil 27.2% 20.8% FREE FLOAT 129.4Mil MARKET CAP* Php7.5Bil *AS OF END DECEMBER 2017 EDWARD K. LEE DAIWA SECURITIES GROUP ALEXANDER C. YU OTHER DIRECTORS & OFFICER 14.9% PUBLIC 23.6% 13.5% 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 2017 2017 Value % of Broker Name Rank Turnover (PhpBil) Total 1 UBS Securities Philippines Inc. 339.68 8.7% 2 CLSA Philippines, Inc.. 279.58 7.1% 3 Deutsche Regis Partners Inc. 275.86 7.0% 4 Macquarie Capital Securities (Phil), Inc 251.91 6.4% 5 Credit Suisse Secu
Slide 7: Corporate Milestones
Corporate Milestones * COLS IPO for PSE listing * Launched the COL PH Trading platform * PSE approved COL's Became licensed by the SEC to conduct business as a broker * Official change of Coporate name to COL FINANCIAL GROUP, INC. * SEC granted COL Financial a Mutual Distributor License * Partnered
Slide 8: Bulk of Revenues Generated From Philippine Operations
Bulk of Revenues Generated From Philippine Operations REVENUE BREAKDOWN 100% 4.2% OTHERS 90% COL’s Philippine operations account for 25.8% INTEREST 80% 98.3% of revenues. 70% 1.7% HK COM Commissions from both Philippines and 60% HK account for 70.0% of revenues. 19.2% PH COM- 50% AGENCY & ADVISORY I
Slide 9: Highlights
Highlights Company Overview Financial & Operating Highlights Growth Plans 9
Slide 10: Key Highlights
Key Highlights Positive Negative • Net profits +15.3%, recurring profits +21.6% • Flattish commissions from agency and advisory business • Philippine business (stock trading & fund distribution) grew faster than the • HK losses increased due to industry booking of impairment allowance on HK trading
Slide 11: 2017 Net Income
CONSOLIDATED INCOME STATEMENT (IN PHP MIL) 2017 Net Income 2016 2017 Change +15.3% Income Amount % Commissions 605.6 678.7 73.2 12.1% 2017 net income increased by 15.3% to Interest 220.4 250.5 30.1 13.6% Php378.7 Mil. Other income 7.8 40.9 33.1 421.6% Total 833.8 970.1 136.3 16.3% Consolidated reven
Slide 12: Recurring Expenses +10.6%
Recurring BREAKDOWN OF EXPENSES (IN PHP MIL) Expenses +10.6% Change 2016 2017 Amount % Recurring expenses increased by 10.6% to Trading Related Expenses Php438.0 Mil. Commission expenses 92.2 89.0 -3.3 -3.5% Stock exch. dues & fees 25.2 28.4 3.3 13.1% Trading related expenses were flat at Php117.4 M
Slide 13: Philippines Continues to Drive Growth
Philippines REVENUE BREAKDOWN (IN PHP MIL) Continues to 2016 2017 Amount Change % Drive Growth Philippines Commission 595.5 662.0 66.4 11.2% Revenues from Philippine operations were Self-directed 412.2 476.1 63.9 15.5% up 15.7% as all revenue items grew strongly. Agency & advisory 183.3 185.9 2.5 1.
Slide 14: Philippines Continues to Drive Growth
Philippines REVENUE BREAKDOWN (IN PHP MIL) Continues to 2016 2017 Amount Change % Drive Growth Philippines Commission 595.5 662.0 66.4 11.2% Self-directed 412.2 476.1 63.9 15.5% Other income increased by Php32.4 Mil largely due to the booking of trading gains Agency & advisory 183.3 185.9 2.5 1.4% r
Slide 15: Market Share Reaches New Record
Market Share Reaches New Record COL’s average daily turnover rose 17.3% COMPARATIVE PERFORMANCE (COL VS. PSE) Y/Y to Php1.0 Bil in 2017, outpacing the 4.9% growth in the PSE’s average daily Change 2016 2017 turnover. Amount % PSE Ave. Daily T/O 7,811.7 8,194.0 382.3 4.9% Consequently, COL’s market s
Slide 16: Market Share Reaches New Record
Market Share Reaches New Record COL MARKET SHARE (VALUE T/O) 14.1% 13.3% 12.8% 12.7% 12.5% 12.3% 11.3% 10.8% 9.3% 8.8% 8.6% 8.4% 7.8% 7.8% 7.8% 7.5% 7.3% 7.2% 6.9% 6.8% 6.4% 6.2% 6.0% 6.0% 5.8% 5.6% 5.2% 4.8% 4.6% 4.6% 4.3% 4.1% 4.1% 4.1% 3.9% 3.6% 3.3% 3.3% 3.3% 2.6% 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3
Slide 17: ROAE Improves to 25.9%
ROAE Improves to 25.9% SELECTED FINANCIAL INDICATORS Change 2016 2017 Amount % 2017 operating profits grew 16.8% to Operating Profits Php511.5 Mil driven by the strength of Philippines 455.3 543.8 88.5 19.4% Philippine operations. Hong Kong (17.5) (32.3) (14.9) -85.2% Total 437.8 511.5 73.6 16.8% Op
Slide 18: Strong and Highly Liquid Balance Sheet
Strong and Highly Liquid CONSOLIDATED BALANCE SHEET (IN PHP MIL) Balance Sheet 12/31/16 12/31/17 Change Amount % COL remained cash rich and debt free. Cash & equivalents 7,360.5 10,104.9 2,744.4 37.3% Receivables 1,188.6 1,169.7 (19.0) -1.6% Total assets were up 33.4% to Php11.9 Bil as Other current
Slide 19: Strong and Highly Liquid Balance Sheet
Strong and Highly Liquid CONSOLIDATED BALANCE SHEET (IN PHP MIL) Balance Sheet 12/31/16 12/31/17 Change Amount % Trade payables jumped by 38.7% to Php10.2 Bil largely due to the increase in clients’ cash Cash & equivalents 7,360.5 10,104.9 2,744.4 37.3% position from Php6.1 Bil as of end 2016 to Rec
Slide 20: Sustained Customer Growth
Sustained Customer Growth +20.8% CLIENT BASE 247,609 300,000 COL’s client base grew by 20.8% Y/Y to 205,039 250,000 247,609 as of end 2017. 162,330 200,000 Average monthly additions remained strong at 3,548. 112,827 150,000 82,476 100,000 46,166 50,000 - 2012 2013 2014 2015 2016 2017 20
Slide 21: Growing Client Equity
Growing Client Equity + 23.3% CLIENT EQUITY (Php Mil) 73,102 80,000 Client equity rose by 23.3% Y/Y to 59,290 70,000 Retail Php73.1 Bil. Insitutional 60,000 46,894 Net new flow from retail clients reached 43,290 50,000 Php4.0 Bil in 2017. 32,051 40,000 25,650 30,000 15,891 13,412 20,000 8,709 10,000
Slide 22: Margin Loans Recover
Margin Loans Recover +37.9% AVE DAILY MARGIN LOANS (Php Mil) 1,231 1,400 1,220 Average daily margin loans recovered by 37.9% to Php822 Mil Y/Y. 1,200 971 As of end 2017, the total number of 952 1,000 approved margin accounts reached 822 1,145, up 1.4% Y/Y. 800 596 27.8% of approved margin accounts 6
Slide 23: Highlights
Highlights Company Overview Financial & Operating Highlights Growth Plans 23
Slide 24: Pro Active Growth Plans
Pro Active Growth Plans Maintain leadership by focusing on our consistent, long-term strategic goals Priorities Statement Strategies Expand Client #1. Continue to be the leading asset • Set up more investor centers Acquisition gatherer in the brokerage industry • Enter into tie-ups to expand market
Slide 25: Update on Fund Distribution Business
Update on Fund Distribution Business NET SALES VS AUA (IN PHPMIL, ACC TO TYPE OF FUND) Type of Fund Total Sales** % Total Total AUA* % Total Money Market 96.7 4.8% 101.7 4.5% Bond Fund 142.3 7.0% 142.4 6.3% Balanced Fund 129.6 6.4% 138.0 6.1% Equity Fund 1,653.5 81.8% 1,879.3 83.1% Total 2,022.2 2,2
Slide 26: Update on Fund Distribution Business
Update on Fund Distribution Business SIGNIFICANT SHARE OF INDUSTRY EQUITY FUND SALES (PESO FUNDS ONLY) COL’s performance 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 was strong relative to the industry. COL 150.9 203.6 192.9 209.9 103.4 110.4 192.3 148.1 Industry 1,181.6 (2,350.1) (2,267.5) 3,125.6 124.9
Slide 27: Update on Fund Distribution Business
Update on Fund Distribution Business STRONG GROWTH IN AVERAGE AUA (NON-MONEY MARKET FUNDS ONLY, IN PHP MIL) 2,028.5 Trailer fee still up due to 2,500.0 1,766.5 significant growth in average 1,529.1 2,000.0 AUA on a year-on-year 1,328.4 basis. 1,174.0 1,003.8 1,500.0 753.6 1,000.0 513.0 319.7 132.6 5
Slide 28: Update on Fund Distribution Business
Update on Fund Distribution Business MF Investors % of Total Clients 30,000.0 12.0% 11.1% 10.4% 9.9% 25,000.0 9.5% 10.0% 8.9% 8.5% 20,000.0 7.5% 8.0% 6.9% 27,375 15,000.0 6.0% 24,739 4.6% 22,257 20,493 18,317 10,000.0 3.4% 16,599 4.0% 13,690 11,859 5,000.0 2.0% 7,526 5,244 0.0 0.0% 3Q15 4Q15 1Q16 2Q
Slide 29: Expanding Reach Through Investor Centers
Expanding Reach Through Investor Centers 29
Slide 30: Thank You
Thank You 30
Slide 31: 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