Capital Securities Corp. · TWSE:6005
Capital Securities — Q2 2023 Earnings Presentation
36 slides from Capital Securities's earnings presentation, Aug 29, 2023
Slide 1: Capital Securities Corporation Institutional Investor Conference
Capital Securities Corporation Institutional Investor Conference AUG 2023 0
Slide 2: Disclaimer
Disclaimer The information (except numbers in financial statements) contained within the document has not been audited or reviewed by any accountant or independent third party. Capital Securities Corporation (the Company) makes no guarantee or warranties as to the accuracy, completeness or correctne
Slide 3: Presentation Outline
Presentation Outline Company Ⅰ Profile Operation Overview Ⅱ Prospect and Outlook Ⅲ Sustainability Development & Capital Ⅳ Securities’ Practices 2
Slide 4: Company Profile
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Slide 5: Shareholder Structure
Shareholder Structure Data as of April 29, 2023 Financial Government Foreign institutions agencies institutions and 3.41% 0.28% individuals 17.16% Other juristic persons 43.08% Individuals 36.07% 4
Slide 6: Basic Information
Basic Information Stock code: 6005 Paid-in capital: NTD21.709bn Number of branches in Taiwan: 53 Number of employees: 1,892 FEB20 Paid-in capital of NTD21.709bn Listed on TPEx in 1995 Paid-in capital of NTD4.08bn Listed on TWSE in 2005 Paid-in capital of NTD13.64bn Established in 1988 Paid-in capita
Slide 7: Deployment in Asia
Deployment in Asia Chengdu Shanghai TEL：86 28 6555 2888 TEL：86 21 5888 7188 FAX：86 28 6555 2999 FAX : 86 21 5888 2929 Add：Units 408-410,4F,Poly Add：18F., New Shanghai Center Tower C,No.1,Jinxiu International Tower, No. 360 Road, Wuhou District Pudong Nan Road, Chengdu, P.R.China Shanghai, P.R.China
Slide 8: Non-operating Investments
Non-operating Investments 7
Slide 9: Non-operating Investments (continued)
Non-operating Investments (continued) Unit：1000 Net income or Net income or Book value as of Book value as of Region Name Currency Paid-in capital loss loss for Jun 30, 2023 Jul 31, 2023 for JAN~JUN23 JAN~JUL23 Taiwan Capital Futures Corp. NTD 2,104,376 6,653,772 490,792 6,767,445 581,611 Capital In
Slide 10: Organizational Structure
che CAPITAL Shareholders Meeting Audit Committee - Remuneration Committee | Board of Directors Chairman Office Risk Management | Committee | Sustainable Development Committee | Auditing | Department | Risk Management | Department | Organizational Structure Offshore Securi oO & — S = Corporate Planni
Slide 11: Operation Overview
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Slide 12: Financial Data Over the Past Three Years
Financial Data Over the Past Three Years (NTD’000) Item 2020 2021 2022 JAN~JUN23 Consolidated net income before tax 4,382,700 6,227,509 1,846,051 2,513,785 Consolidated net income 3,840,679 5,461,649 1,179,016 2,412,449 Net income attributable to shareholders of the parent 3,569,529 5,249,590 840,04
Slide 13: Consolidated Balance Sheet (summary)
Consolidated Balance Sheet (summary) (NTD’000) Item Jun 30, 2022 Jun 30, 2023 Current assets 178,298,865 203,292,945 Non-current assets 17,109,509 22,538,415 Total assets 195,408,374 225,831,360 Current liabilities 155,287,716 183,200,459 Non-current liabilities 2,704,998 1,944,891 Total liabilities
Slide 14: Consolidated Comprehensive Income Statement (summary)
Consolidated Comprehensive Income Statement (summary) (NTD’000) Item JAN~JUN22 JAN~JUN23 Revenue 3,510,469 5,590,569 Operating expenses and costs 3,530,653 4,322,695 Operating income (20,184) 1,267,874 Other income and expenses 556,277 1,245,911 Net income before tax 536,093 2,513,785 Income tax exp
Slide 15: Earnings Breakdown by Major Business
Earnings Breakdown by Major Business JAN-JUN22 JAN-JUN23 600% 558% 400% 200% 163% 40% 34% 15% 4% 22% 0% -200% -400% -600% -636% -800% Brokerage Proprietary trading & Underwriting & Others Non-operating Derivatives & Fixed investments income 14
Slide 16: Business Performance and Market Ranking
Business Performance and Market Ranking Figures in Market ranking in Item JAN~JUN23 JAN~JUN23 Market share in brokerage 3.43% 10 Market share in margin financing 5.29% 6 Trust business-AUM NTD15.011bn 6 Number of warrants issued 3,888 3 Value of warrants issued NTD36.2bn 3 Value of structured produc
Slide 17: Dividend Payout
Dividend Payout Unit: NTD EPS Cash dividend per share 2.50 2.42 2.00 1.64 1.50 1.11 1.00 1.65 0.61 0.50 1.1 0.39 0.8 0.4 0.39 0.00 2018 2019 2020 2021 2022 16
Slide 18: Capital Adequacy Ratio
Capital Adequacy Ratio Capital adequacy ratio Minimum capital adequacy ratio: 150% 500% 450% 400% 327% 337% 328% 350% 320% 305% 300% 250% 200% 150% 100% 50% 0% 6/30/2022 9/30/2022 12/31/2022 3/31/2023 6/30/2023 17
Slide 19: Ratings
Ratings Fitch Ratings Long-term Issuer Default Rating 2022 (IDR) BBB- National Long-term Rating A(twn) National Short-term Rating F1(twn) Outlook Stable 18
Slide 20: JUL23 Operating Results
JUL23 Operating Results Unit: NTD’000 Entity JUL23 JAN~JUL23 Net income before tax 379,235 2,546,373 Net income 487,236 2,682,201 EPS (NTD) 0.22 1.24 Consolidated JUL23 JAN~JUL23 Net income before tax 441,148 2,951,101 Net income 526,496 2,935,114 ※ Unaudited 19
Slide 21: JAN~JUL23 Earnings Breakdown by Major Business
JAN~JUL23 Earnings Breakdown by Major Business JAN-JUL23 Non-operating Underwriting investments & Others 4% 22% Brokerage 44% Proprietary trading & Derivatives & Fixed income 30% ※ Unaudited 20
Slide 22: Business Performance and Market Ranking
Business Performance and Market Ranking Figures in Market ranking in Item JAN~JUL23 JAN~JUL23 Market share in brokerage 3.44% 9 Market share in margin financing 5.26% 6 Trust business-AUM NTD15.461bn 6 Number of warrants issued 4,753 3 Value of warrants issued NTD43.3bn 3 Value of structured product
Slide 23: Prospect and Outlook
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Slide 24: Business Philosophy: Our Vision, Our Belief
Business Philosophy Our Vision Our Belief • To create long-term and • The Capital Group in rewarding partnerships Chinese means "benefit with our clients by for many" which offering high value-added embodies our financial services which commitment to public exceed client interests and contribution e
Slide 25: Business Development Plans
Business Development Plans Strategy 1 Strategy 2 Strategy 3 Strategy 4 Strategy 5 Strategy 6 Hold regular Promote digital PM team to Launch new Set up a settlement Provide services meetings business and provide training designed product to center to simplify including to integrate cultivate digital
Slide 26: Business Development Plans (continued)
Business Development Plans (continued) Strategy 7 Strategy 8 Strategy 9 Strategy 10 Strategy 11 Strategy 12 Encourage • Monitor the Assign Derivatives • Refine media • Upgrade the hierarchy of ESG committee - collaboration impact from QE, Department and platform • Create an ad/copy establish sustain
Slide 27: List of Awards
List of Awards Received Securities House Gold Metal from Commercial Times’ “2023 Taiwan Service Sector Evaluation” Received the “Wealth Creator Award”, No.1 (Taichung branch) and No.2 (Dongda branch) in the “Warrant Sales Promotion Award”, and No.1 (Dajia branch) and No.2 (Shilin branch) in the “War
Slide 28: List of Awards (continued)
List of Awards (continued) Received Securities House Gold Metal from Commercial Times’ “Taiwan Service Sector Evaluation” 27
Slide 29: Sustainability Development & Capital Securities' Practices
Ⅰ Ⅱ Sustainability Development & Capital Securities’ Practices Ⅲ Ⅳ 28
Slide 30: Why Do We Promote Sustainable Development?
Why Do We Promote Sustainable Development? “Sustainable development is the development that meets the needs of the present without compromising the ability of future generations to meet their own needs,” according to the Our Common Future Report released on the 42nd General Assembly of the United Na
Slide 31: Sustainable Development Goals (SDGs)
Sustainable Development Goals (SDGs) The UN has proposed the 2030 Sustainable Development Agenda in 2015 with 17 Sustainable Development Goals (SDGs) that are key indicators of global sustainable development. These goals serve as indispensable indicators for the international community. As they are
Slide 32: Transition Strategies for Sustainable Development in the Securities and Futures Sectors
Transition Strategies for Sustainable Development in the Securities and Futures Sectors Taiwan’s Financial Supervisory Commission (FSC) has announced the “Transition Strategies for Sustainable Development in the Securities and Futures sectors” to strengthen sustainable growth in the industries and a
Slide 33: Promotion and Participation in Ecological Perseveration
Promotion and Participation in Ecological Perseveration On 05/29/2023, Capital Securities and its staff explored the Lujiao Creek Wetland in New Taipei City, Taiwan. On that day, they removed invasive species from the wetland to ensure a balanced ecosystem and promote Green Finance and environmental
Slide 34: Rural Education Support
Rural Education Support Celebrating the 10th year of the “Capital Reading Program” Children’s finance books and reading fund donations Capital Securities has long dedicated itself to care for rural education. On 05/23/2023, it kicked off the 2023 “Capital Reading Program” at Changxing Elementary Sch
Slide 35: Recognized for Sustainable Development and Corporate Governance
Recognized for Sustainable Development and Corporate Governance Selected as a constituent of FTSE4Good TIP Taiwan ESG Index Selected as a constituent of FTSE4Good Emerging Index Selected as a constituent of TWSE RA Taiwan Employment Creation 99 Index Ranked among the top 21%~35% in the 2022 Corporat
Slide 36: Thank you
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