Slide 1: COL 9M17 Investor Presentation
COL 9M17 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 20.7% stake and actively manages the Company
Slide 4: Ownership Structure
Ownership Structure OUTSTANDING SHARES 476.0Mil 29.4% 20.7% FREE FLOAT 139.8Mil MARKET CAP* Php7.6Bil *AS OF END JUNE 2017 EDWARD K. LEE DAIWA SECURITIES GROUP ALEXANDER C. YU OTHER DIRECTORS & OFFICER 14.9% PUBLIC 22.5% 12.5% 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 9M17 9M17 Value % of Broker Name Rank Turnover (PhpBil) Total 1 UBS Securities Philippines Inc. 268.3 8.9% 2 Macquarie Capital Securities (Phil), Inc. 214.5 7.1% 3 CLSA Philippines, Inc. 210.3 7.0% 4 Deutsche Regis Partners Inc. 207.3 6.9% 5 COL Financial Group, I
Slide 7: Corporate Milestones
Corporate Milestones * SEC granted COL Financial a Mutual Distributor License * Partnered with ALFM, ATRAM,| First Metro, Philamlife, Philequity and Sun Life * Launched the COL Mobile App on the iOS platform + Opened an Investor Center in Makati * COUS IPO for PSE listing © Official change of Copora
Slide 8: Bulk of Revenues Generated From Philippine Operations
Bulk of Revenues Generated From Philippine Operations REVENUE BREAKDOWN 100% 3.7% OTHERS 90% COL’s Philippine operations account for 25.0% INTEREST 80% 98.4% of revenues. 70% 1.5% HK COM Commissions from both Philippines and HK account for 69.7% of revenues. 60% 20.6% PH COM- AGENCY & ADVISORY Inter
Slide 9: Highlights
Highlights Company Overview Financial & Operating Highlights Growth Plans 9
Slide 10: Key Highlights
Key Highlights Positive Negative • 9M17 profits +7.2% • 9M17 commissions from agency and advisory business -2.5% • Philippine business (stock trading & fund distribution) grew faster than the industry • Market share reached a new record high in 9M17 • Margin lending increased • Strong growth in new
Slide 11: 9M17 Net Income
CONSOLIDATED INCOME STATEMENT (IN PHP MIL) 9M17 Net Income 9M16 9M17 Change +7.2% Income Amount % Commissions 490.8 506.1 15.3 3.1% 9M17 net income increased by 7.2% to Interest 164.5 178.0 13.5 8.2% Php339.7 Mil. Other income 4.9 26.6 21.6 438.2% Total 660.3 710.7 50.4 7.6% Consolidated revenues in
Slide 12: Total Expenses
Total Expenses BREAKDOWN OF EXPENSES (IN PHP MIL) +8.0% Change 9M16 9M17 Amount % Total expenses increased by 8.0% to Trading Related Expenses Php270.7 Mil. Commission expenses 75.4 70.0 -5.4 -7.1% Stock exch. dues & fees 19.5 21.3 1.8 9.3% Trading related expenses fell by 3.8%. This was largely due
Slide 13: Philippines Continues to Drive Growth
Philippines REVENUE BREAKDOWN (IN PHP MIL) Change Continues to Drive 9M16 9M17 Amount % Philippines Growth Commission 483.4 495.5 12.0 2.5% Revenues from Philippine operations were up Self-directed 333.1 348.9 15.8 4.8% by 7.5%, largely driven by the 8.2% increase in Agency & advisory 150.3 146.5 (3
Slide 14: Philippines Continues to Drive Growth
Philippines REVENUE BREAKDOWN (IN PHP MIL) Change Continues to Drive 9M16 9M17 Amount % Philippines Growth Commission 483.4 495.5 12.0 2.5% Commission revenues from Philippine operations Self-directed 333.1 348.9 15.8 4.8% increased by only 2.5% as commissions from the Agency & advisory 150.3 146.5
Slide 15: Market Share Reaches New Record
Market Share Reaches New Record COL’s average daily turnover rose 8.8% Y/Y COMPARATIVE PERFORMANCE (COL VS. PSE) to Php1.0 Bil during 9M17, outpacing the 3.6% growth in the PSE’s average daily Change 9M16 9M17 turnover. Amount % PSE Ave. Daily T/O 8,064.5 8,351.6 287.1 3.6% Consequently, COL’s marke
Slide 16: Market Share Reaches New Record
Market Share Reaches New Record COL MARKET SHARE (VALUE T/O) 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% 6.4% 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 3Q14 4Q14 1Q
Slide 17: ROAE flat at 31.2%
ROAE flat at 31.2% SELECTED FINANCIAL INDICATORS Change 9M16 9M17 Amount % 9M17 operating profits grew 7.4% to Operating Profits Php440.0 Mil driven by the strength of Philippines 422.0 450.3 28.3 6.7% Philippine operations and lower losses from HK operations. Hong Kong (12.2) (10.3) 1.9 -15.9% Tota
Slide 18: Strong and Highly Liquid Balance Sheet
Strong and Highly Liquid Balance CONSOLIDATED BALANCE SHEET (IN PHP MIL) Sheet 12/31/16 9/30/17 Change COL remained cash rich and debt free. Amount % Total assets were up 20.7% to Php10.7 Bil Cash & equivalents 7,360.5 8,758.7 1,398.1 19.0% as cash & cash equivalents increased by Receivables 1,188.6
Slide 19: Strong and Highly Liquid Balance Sheet
Strong and Highly Liquid Balance CONSOLIDATED BALANCE SHEET (IN PHP MIL) Sheet 12/31/16 9/30/17 Change Amount % Trade payables were up by 24.6% to Php9.2 Bil largely due to the increase in clients’ cash Cash & equivalents 7,360.5 8,758.7 1,398.1 19.0% position from Php6.1 Bil as of end 2016 to Recei
Slide 20: Sustained Customer Growth
Sustained Customer Growth +21.2% CLIENT BASE 236,753 COL’s client base grew by 21.2% Y/Y to 205,039 250,000 195,320 236,753 as of end September 2017. 162,330 200,000 Average monthly additions remained strong at 3,524 for the YTD period. 112,827 150,000 82,476 100,000 46,166 50,000 - 2012 2013 2014 2
Slide 21: Growing Client Equity
Growing Client Equity + 17.1% CLIENT EQUITY (Php Mil) 71,017 80,000 Retail 60,643 70,000 59,290 Client equity rose by 17.1% Y/Y to Insitutional Php71.1 Bil. 60,000 46,894 Net new flow from retail clients reached 43,290 50,000 Php4.6 Bil in 9M17. 32,051 40,000 25,650 30,000 15,891 13,412 20,000 8,709
Slide 22: Margin Loans Recover
Margin Loans Recover +41.2% AVE DAILY MARGIN LOANS (Php Mil) 1,400 1,231 1,220 Average daily margin loans recovered by 41.2% to Php835 Mil Y/Y. 1,200 971 As of end September, the total number 952 1,000 of approved margin accounts reached 835 1,173, up 3.8% Y/Y. 800 27.5% of approved margin accounts
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 80.7 4.4% 85.1 4.1% Bond Fund 114.4 6.3% 114.4 7.4% Balanced Fund 120.9 6.6% 126.0 7.3% Equity Fund 1,505.4 82.7% 1,656.9 81.2% Total 1,821.3 1,98
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 was 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 strong relative to the industry. COL 150.9 203.6 192.9 209.9 103.4 110.4 192.3 Industry 1,181.6 (2,350.1) (2,267.5) 3,125.6 124.9 (2,212.5)
Slide 27: Update on Fund Distribution Business
Update on Fund Distribution Business STRONG GROWTH IN AVERAGE AUA (NON-MONEY MARKET FUNDS ONLY) 2,000.0 1,766.5 1,800.0 Trailer fee still up due to 1,600.0 1,529.1 significant growth in average AUA on a year-on-year 1,400.0 1,328.4 1,174.0 basis. 1,200.0 1,003.8 1,000.0 800.0 753.6 600.0 513.0 400.0
Slide 28: Update on Fund Distribution Business
Update on Fund Distribution Business 30,000.0 12.0% MF INVESTORS 10.4% 9.9% 25,000.0 9.5% 10.0% 8.9% 8.5% 20,000.0 7.5% 8.0% 6.9% 15,000.0 6.0% 24,739 4.6% 22,257 20,493 18,317 10,000.0 3.4% 4.0% 16,599 13,690 11,859 5,000.0 2.0% 7,526 5,244 0.0 0.0% 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 MF I
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