Col Financial Group, Inc. · PSE:COL
Col Financial — FY2014 Earnings Presentation
27 slides from Col Financial's earnings presentation, 2015
Slide 1: 2014 Earnings Presentation
2014 EARNINGS & PRESENTATION [een Dentist COL FINANCIAL WAS BUILT ON THE FOUNDATION THAT EVERY FILIPINO DESERVES TO BE RICH.” ~ EDWARD K LEE, CHAIRMAN & FOUNDER Future Retiree Invest and Build Genuine wealth Rose Fres Fausto, Author and Columnist with her sons Martin with the 22, Enrique 19, and Ant
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 20.2% stake and actively manages the Company 3
Slide 4: Ownership Structure
Ownership Structure 38.6% 20.2% EDWARD K. LEE ALEXANDER L. YU OTHER DIRECTORS & OFFICER PUBLIC 13.8% OUTSTANDING SHARES 474.8Mil FREE FLOAT 183.22Mil MARKET CAP* Php7.2Bil *AS OF END DECEMBER 2014 27.4% 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 2014 Value 2014 % of Broker Name Turnover Rank Total (PhpBil) 1 Deutsche Regis Partners Inc. 433.64 10.18 2 CLSA Philippines, Inc. 370.14 8.69 3 UBS Securities Philippines Inc. 340.33 7.99 4 Maybank ATR Kim Eng Securities, Inc. 295.49 6.94 5 Macquari
Slide 9: Corporate Milestones
AUGUST Became licensed by the SEC to conduct business as a broker and of securities in the Philippines MARCH The COL PH online trading platform became operational APRIL CitisecOnline HK Ltd. (COL HK) became a trading participant of the IK Exchange MAY The COL HK latform was jaunched Corporate Milest
Slide 10: Bulk of Revenues Generated From Philippine Operations
Bulk of Revenues Generated From Philippine Operations REVENUE BREAKDOWN 100% 0.7% OTHERS COL’s Philippine operations account 90% for 94.5% of revenues, while its HK 28.5% INTEREST operations account for the balance. 80% 70% Commissions from both Philippines and 5.4% HK COM HK account for 70.7% of re
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 • 4Q14 operating results • 2014 net profits still fell Y/Y continued to rebound due to weak 1H14 numbers • Results outperformed the PSE resulting from lower market • Balance sheet remained volumes, and the booking healthy of non-recurring fringe • Strong growth in ne
Slide 13: 4Q14 Net Income Almost Doubled
CONSOLIDATED INCOME STATEMENT (IN PHP MIL) 4Q14 Net Income Change Almost Doubled 4Q13 4Q14 Amount % Income Commissions 88.5 135.1 46.6 52.6% 4Q14 net income improved significantly by 97.9% to Php13.0 Mil. Interest 47.2 51.1 3.9 8.3% Other income 1.5 0.7 (0.7) -49.9% Consolidated revenues increased b
Slide 14: Philippines Rebounded
REVENUE BREAKDOWN (IN PHP MIL) Change Philippines Rebounded 4Q13 4Q14 Amount % Philippines Commission 79.0 129.4 50.4 63.7% Revenues increased as the Philippines continued to rebound. Self-directed 50.0 85.5 35.6 71.2% Agency & advisory 29.1 43.9 14.8 50.9% Philippine revenues rose by 41.3% to Inter
Slide 15: 2014 Net Income Fell 13.6% Y/Y
CONSOLIDATED INCOME STATEMENT (IN PHP MIL) 2014 Net Income 2013 2014 Change Fell 13.6% Y/Y Amount % Income However, due to weak trading volumes Commissions 540.5 503.4 (37.1) -6.9% during 1H14, 2014 net income still Interest 198.7 203.1 4.5 2.3% dropped 13.6% Y/Y to Php262.3 Mil. Other income 1.8 5.
Slide 16: Philippines & HK Down
REVENUE BREAKDOWN (IN PHP MIL) Change Philippines & HK Down 2013 2014 Amount % Philippines Revenues fell by 4.0% Y/Y to Php711.6 Commission 496.1 464.6 (31.4) -6.3% Mil as the rebound in Philippine Self-directed 298.0 297.6 (0.4) -0.1% operations during 2H14 was not enough to offset lower trading vo
Slide 17: ROAE Remained Healthy
ROAE Remained Healthy SELECTED FINANCIAL INDICATORS Change 2013 2014 Amount % Operating profits fell by 11.7% Y/Y to Operating Profits Php341.0 Mil, largely pulled down by the 27.3% drop in operating profits Philippines 368.9 329.4 (39.6) -10.7% during 1H14 and the booking of Hong Kong 17.3 11.7 (5.
Slide 18: Strong and Highly Liquid Balance Sheet
Strong and Highly Liquid Balance Sheet COL remained cash rich and debt free. CONSOLIDATED BALANCE SHEET (IN PHP MIL) Total assets grew by 32.3% to Php6.4 Bil Change 12/31/13 12/31/14 largely driven by the 44.6% increase in Amount % cash. Cash & equivalents 3,316.1 4,794.3 1,478.2 44.6% Receivables i
Slide 19: Sustained Customer Growth
Sustained Customer Growth CLIENT BASE +36.8% 112,827 120,000 COL’s client base grew by 36.8% Y/Y to 112,827 as of end 2014. 82,476 100,000 Average monthly additions 80,000 remained strong at 2,529. 46,166 60,000 28,067 40,000 15,345 8,716 6,309 20,000 - 2008 2009 2010 2011 2012 2013 2014 19
Slide 20: Sustained Customer Growth
Sustained Customer Growth CLIENT EQUITY +18.3% 56,702 Client equity grew by 18.3% Y/Y to 60,000 Php56.7 Bil. 47,942 50,000 Net new flow of clients reached Php12.0 Bil in 2014. 34,359 40,000 30,000 16,447 11,962 20,000 5,122 2,128 10,000 - 2008 2009 2010 2011 2012 2013 2014 20
Slide 21: Margin Loans Flat
Margin Loans Flat AVE DAILY -0.9% MARGIN LOANS Average daily margin loans were flat at Php1.2 Bil. 1,231 1,400 1,220 1,102 1,200 As of end 2014, the total number of approved margin accounts 1,000 952 reached 1,117, up 6.8% Y/Y. 800 Meanwhile, 31.2% of approved margin accounts utilized their 573 600
Slide 22: Gaining Market Share
Gaining Market Share COMPARATIVE PERFORMANCE (COL VS. PSE) COL’s 2014 average daily turnover fell 2013 2014 Amount % 5.4% Y/Y to Php714.8 Mil. Nevertheless, the drop was smaller compared to the PSE Ave. Daily T/O 10,521.4 8,800.4 (1,721.0) -16.4% (PhpMil) 16.4% drop in the PSE’s average daily turnov
Slide 23: Investor Presentation Highlights: Growth Plans
Investor Presentation Highlights COMPANY FINANCIAL & OPERATING GROWTH OVERVIEW HIGHLIGHTS 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 #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 25: Updates on Growth Plans
Updates on Growth Plans DISTRIBUTION OF THIRD PARTY FUNDS • COL will soon be able to offer various types of professionally managed funds through its platform • At present, COL has signed MOAs with six mutual fund companies which together account for 92.1% of the AUM of the mutual fund industry • The
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