COL Financial Group, Inc. · PSE:COL
COL Financial — FY2012 Earnings Presentation
22 slides from COL Financial's earnings presentation, March 2013
Slide 1: 2012 Earnings Results
2012 Earnings Results March 2013 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. 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 45.0% Alexander C. Yu 13.9% Other Directors & Officers 21.6% *As of end-December 2012 Outstanding Shares 467.8 Mil Free Float 210.6 Mil Market Cap* Php9.1 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. 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 full year operating profits including cash deposits down – Highly liquid & healthy balance – Philippine full year operating sheet profits flat due to higher – 4Q12 results were up y/y operating expenses and larger – Marg
Slide 8: FY12 Net Income Down by 8.6%
FY12 Net Income Down by 8.6% COL FINANCIAL GROUP, INC Consolidated Income Statement (In PhpMil) • Consolidated net income fell 8.6% to Php305.9 Mil. Change FY11 FY12 Amount % • Revenues fell 1.2% as the strength of Philippine INCOME operations was not enough to offset the weakness of Commissions 444
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 Revenue Breakdown (In PhpMil) • Revenues fell by 1.2% to Php650.9 Mil as the strong performance of Philippine operations was not enough Philippines FY11 FY12 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 Revenue Breakdown (In PhpMil) • Other income fell by 90.8% to Php2.5 Mil due to the Philippines FY11 FY12 Amount % Commission 327.2 406.5 79.3 24.2% absence of trading gains. Regular accounts 232.8 265.4 32.6 14.0%
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 Other income 0.5% Hong Kong 8.9% Interest 28.3% Commissions Philippines 71.2% 91.1% Sources of Revenues Revenues (According to Geography) FY11 FY12 FY11 FY12 Commissions 67.5%
Slide 12: Operating Profits Pulled Down by HK and Higher Costs in Philippines
Operating Profits Pulled Down by HK and Higher Costs in Philippines COL FINANCIAL GROUP, INC • Operating profits fell by 15.6% to Php339.2 Mil due to Selected Financial Indicators the weak performance of HK and as costs from Philippine operations increased due to COL’s capacity FY11 FY12 Amount % ex
Slide 13: Operating Profits Pulled Down by HK and Higher Costs in Philippines
Operating Profits Pulled Down by HK and Higher Costs in Philippines COL FINANCIAL GROUP, INC Selected Financial Indicators FY11 FY12 Amount % • Despite the significant drop in operating margin, net Operating Profits margin fell by a smaller amount of 380 basis points as Philippines 320.5 314.7 -5.8
Slide 14: 4Q12 Results Paint a More Positive Picture
4Q12 Results Paint a More Positive Picture • Although FY12 full year results were weak, COL’s COL FINANCIAL GROUP, INC earnings performance was very strong during 4Q12. Revenue Breakdown (In PhpMil) Change • During 4Q12, consolidated revenues rose by 15.2% to Philippines 4Q11 4Q12 Amount % Php167.1
Slide 15: 4Q12 Results Paint a More Positive Picture
4Q12 Results Paint a More Positive Picture COL FINANCIAL GROUP, INC • Operating profits rose by 16.0% to Php50.1 Mil during Selected Financial Indicators 4Q12, driven by the strong performance of the Change Philippines, offsetting the weak performance of HK. 4Q11 4Q12 Amount % Operating Profits • Op
Slide 16: Strong and Highly Liquid Balance Sheet
Strong and Highly Liquid Balance Sheet COL FINANCIAL GROUP, INC Consolidated Balance Sheet (In PhpMil) • COL's balance sheet remained strong, with high Change levels of cash and no debts. 12/31/11 12/31/12 Amount % ASSETS Current Assets • Trade payables grew by 34.0% to Php2.9 Bil Cash and cash equi
Slide 17: Sustained Customer Growth
Sustained Customer Growth Client Base +65.8% 50,000 46,536 45,000 40,000 35,000 30,000 28,067 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 2012 w w w. c o l f i n a n c i a l . c o m
Slide 18: Sustained Customer Growth
Sustained Customer Growth Client Equity (PhpMil) 40,000 +108.9% 34,359 35,000 30,000 25,000 20,000 16,447 15,000 11,962 10,000 3,648 5,122 5,000 942 2,128 - 2006 2007 2008 2009 2010 2011 2012 * End 2012 balance includes Php7.3 Bil worth of SMC preferred shares of institutional clients which may be w
Slide 19: Margin Loans Drop, Although Continuing to Show Signs of Bottoming Out
Margin Loans Drop, Although Continuing to Show Signs of Bottoming Out -13.6% • For FY12, average daily margin loans fell by 13.6% to Php952 Mil. • However, on a quarter on quarter basis, average daily margin loans continued to improve, rising by 4.3% to Php1.0 Bil during 4Q12 from Php963 Mil during
Slide 20: 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 4Q12 Approved Margin Accounts 690 841 868 882 890 900 Accounts Utilizing Margin 302 314 287 264 294 283 % Utilization 43.8% 37.3% 33.1% 29.9% 33.0% 31.4% Value of Margin Granted (PhpMil) 3,102 4,01
Slide 21: Comparative Performance (COL vs. PSE)
Comparative Performance (COL vs. PSE) 2011 2012 Amount % PSE Ave. Daily T/O (PhpMil) 5,713.2 7,261.1 1,547.9 27.1% COL Ave. Daily T/O (PhpMil) 491.5 616.0 124.5 25.3% COL Market Share 4.3% 4.2% PSE Ranking 8 7 No. of Transactions - PSE ('000) 8,246.5 11,490.5 3,243.9 39.3% No. of Transactions - COL
Slide 22: THANK YOU
THANK YOU ww.colfinancial.com