Col Financial Group, Inc. · PSE:COL
Col Financial — FY2022 Earnings Presentation
27 slides from Col Financial's earnings presentation, 2022
Slide 1: COL Investor Presentation 2022
2022 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: Shares Outstanding, Free Float and Market Cap
4.76 Bil 21.7 Outstanding Shares % Edward K. Lee Free Float 1.19 Bil 24.9% Market Cap* Php15.3 Bil Public *As of end December 2022 14.9% Daiwa Securities Group 24.6% 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 Licensed by the SEC Began operating the Listed in the PSE at Launched the COL Launched the full- to conduct business COL PH online Php0.136/sh Easy Investment service agency and as a broker and trading platform Program (EIP) advisory team called seller of
Slide 6: COL Milestones
COL Milestones 2012 2014 2015 2017 2021 2022 Officially Granted a Launched COL Japan’s Daiwa Started 70% owned changed Mutual Fund Fund Source - Securities Group, distributing COL corporate name Distributor the first fund Inc. acquired a Feeder Funds Investment to COL Financial License by the superm
Slide 7: The Biggest Philippine Based Stockbroker
The Biggest Philippine Based Stockbroker 2022 Rank Broker Name 2022 Value Turnover (Php Bil) % of Total 1 Philippine Equity Partners, Inc 273.5 7.7 2 UBS Securities Philippines Inc 256.6 7.1 3 CLSA Philippines Inc 234.9 5.9 4 Mandarin Securities Corp 211.3 5.1 5 COL Financial Group, Inc 165.4 4.6 6
Slide 8: The Biggest Philippine Based Stockbroker
The Biggest Philippine Based Stockbroker Total Accounts (as of 2021) Total Online Accounts (as of 2021) 73% 27 % 58% 42% Others Others COL COL Source: PSE 8
Slide 9: Bulk of Revenues Generated from Commissions and Interest
Revenue Breakdown 2022 2.7% Trail Fees 1.0% Others Bulk of Revenues 41.3% Interest Generated from Commissions and Interest 54.9% Commissions accounted for 54.9% of revenues. Interest income from margin loans and cash Commissions placements accounted for 41.3% of revenues. Trailer fees from the distr
Slide 10: Key Operating Highlights
Key Operating Highlights Positives Negatives 1. Client base continued to grow 1. Commission revenues and net 2. Improvement in interest income partly income fell sharply offset weakness of commission revenues 2. Rank and market share in the PSE 3. MF sales remained positive, allowing trail slipped f
Slide 11: 2022 Net Income -58.6% Y/Y
Pro Forma Consolidated Income Statement (Php Mil) Change 2022 Net Income 2021 2022 Amount % Income -58.6% Y/Y Commissions 1,013.0 447.1 (566.0) -55.9% Interest 182.1 336.3 154.3 84.7% Trailer Fees 21.5 22.1 0.6 2.9% 2022 net income fell by 58.6% to Php241.0 Other income 53.8 8.2 (45.6) -84.7% Mil la
Slide 12: Commissions Hurt by Poor Sentiment
Pro Forma Revenue Breakdown (Php Mil) Commissions Hurt by Poor Change Sentiment 2021 2022 Amount % Revenue Breakdown Commission 1,013.0 447.1 (566.0) -55.9% Revenues fell by 35.9% due to the significant decline in commissions and the absence of other income. PH-Self-directed 903.4 360.1 (543.3) -60.
Slide 13: Commissions Hurt by Poor Sentiment
Pro Forma Revenue Breakdown (Php Mil) Commissions Hurt by Poor Change Sentiment 2021 2022 Amount % Revenue Breakdown Commission 1,013.0 447.1 (566.0) -55.9% On the positive side, interest income from placements grew, allowing total interest income to increase by 84.7% to PH-Self-directed 903.4 360.1
Slide 14: Lower Expenses
Pro Forma Breakdown of Expenses (Php Mil) Change 2021 2022 Amount % Lower Expenses Trading Related Expenses Commission expenses 36.3 28.1 -8.2 -22.5% Stock exch. dues & fees 36.8 23.7 -13.1 -35.5% Operating expenses were down 4.2% due to lower Total 73.1 51.9 -21.2 -29.1% trading related expenses an
Slide 15: ROAE Normalized to 11.8%
ROAE Normalized to 11.8% Selected Financial Ratios 2021 2022 ROAE normalized from 29.6% to 11.8%. Profitability deteriorated as commissions fell, Operating Profit Margin 59.8% 39.1% leading to weaker margins and lower asset turnover. EBITDA Margin 64.6% 45.6% Net Margin 45.8% 29.6% Margins dropped a
Slide 16: Now Number 5
Comparative Performance (COL vs. PSE) Change Now Number 5 2021 2022 Amount % COL’s average daily turnover fell 56.1% to PSE Ave. Daily T/O (PhpMil) 9,002.1 7,300.8 (1,701.3) -18.9% Php675.3 Mil in 2022. This was much steeper than the PSE’s 18.9% decline. COL Ave. Daily T/O (PhpMil) 1,538.6 675.3 (86
Slide 17: Strong Balance Sheet
Strong Balance Sheet Pro Forma Consolidated Balance Sheet (Php Mil) Change 12/31/21 12/31/22 Amount % Cash & cash equivalents increased by 507.1% to Php10.5 Bil. This was largely due to the reallocation Cash & cash equivalents 1,733.5 10,524.3 8,790.8 507.1% of funds away from investment securities
Slide 18: Strong Balance Sheet
Strong Balance Sheet Pro Forma Consolidated Balance Sheet (Php Mil) Change 12/31/21 12/31/22 Amount % Stockholders’ equity fell by 6.0% to Php2.0 Bil due to the payment of Php404.6 Mil worth of cash Cash & cash equivalents 1,733.5 10,524.3 8,790.8 507.1% dividends, partly offset by the booking of Tr
Slide 19: Customer Base Up Y/Y
Client Base +2.9% Customer Base 503,145 489,154 Up Y/Y 437,048 COL’s client base grew by 2.9% Y/Y to 332,098 503,145 as of end 2022. 292,401 Average monthly additions during the past 12 months reached 2,258. The increase would have been larger if not for the suspension of 13,102 dormant accounts in
Slide 20: Client Equity Down on Lower Asset Values
Client Equity (Php Mil) -6.9% Client Equity Down on 112,556 107,346 104,782 Lower Asset Values 72,673 72,398 Client equity was down 6.9% Y/Y to Php104.8 Bil as of end 2022. Client equity fell due to lower asset values, partly offset by new deposits from clients. The PSEi index was down 7.8% during t
Slide 21: Margin Loans Up
Ave Daily Margin Loans (Php Mil) +5.6% Margin Loans Up 759 719 Average daily margin loans increased by 5.6% to Php759 Mil Y/Y. 617 536 518 As of end 2022, the total number of approved margin accounts was 1,166, slightly lower compared to 1,226 last year. Less clients utilized their margin lines at 3
Slide 22: MF Net Sales still Positive
MF Net Sales Acc to Fund Type (Php Mil) 120.0 MF Net Sales still Positive 100.0 80.0 COL’s MF distribution business still generated net 60.0 sales of Php169.8 Mil despite the challenging operating environment, largely due to the 40.0 Php Mil introduction of Feeder Funds. 20.0 Around Php105.9 Mil or
Slide 23: Average AUA Rebounded
Average AUA (Non-Money Market Funds Only, in Php Mil) 3,997.8 3,874.3 Average AUA Rebounded 3,778.3 3,742.6 3,604.4 AUA rebounded Q/Q to Php3.6 Bil as of end 2022 due to consistent positive 3,529.5 3,483.6 net sales and the recovery of bond 3,446.2 and equity markets in the fourth quarter. Trailer f
Slide 24: Percentage of Clients Owning MFs Slipped
Percentage of Clients Owning MFs Slipped MF Investors % of Total Clients 13.1% 65,000 13.2% 13.0% 13.1% 13.0% 64,000 12.9% 13.0% 12.8% 12.8% 63,000 12.9% 12.7% 12.8% 62,000 64,582 12.7% 64,296 12.6% 63,870 61,000 12.6% 62,273 60,000 61,489 12.5% 61,044 60,866 60,418 12.4% 59,000 12.3% 58,000 12.2% 1
Slide 25: MF only Clients Flat
MF Only Clients 18,000 MF only Clients Flat 16,000 14,000 12,000 The number of clients who only owned MFs increased Y/Y but was flat Q/Q. 10,000 As of end 2022, there were 16,022 clients who 8,000 only owned MFs, up 6.0% Y/Y. 6,000 Of the said number, 11,320 or 70.7% were Starter 4,000 clients while
Slide 26: Growing Number, but Lower Percentage of Clients Own MFs
27 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 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