COL Financial Group, Inc. · PSE:COL
COL Financial — FY2019 Earnings Presentation
30 slides from COL Financial's earnings presentation, 2020
Slide 1: COL Financial 2019 Investor Presentation
COL FINANCIAL 2019 ey PRESENTATION
Slide 2: Key Highlights: Company Overview
Company Financial & Growth Overview Operating Plans Highlights Key Highlights 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 21.7% stake and actively manages the Company 3
Slide 4: Shareholder structure and market cap
EDWARD K. LEE 21.7% DAIWA SECURITIES GROUP ALEXANDER C. YU 24.6% OTHER DIRECTORS & OFFICER PUBLIC 14.9% Outstanding 476.0Mil Shares 24.8% 14.0% Free Float 116.9Mil Market Cap* Php8.8Bil *AS OF END DECEMBER 2019 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 2019 VALUE 2019 RANK BROKER NAME % OF TOTAL TURNOVER (PHBIL) 1 UBS SECURITIES PHILIPPINES, INC. 314.7 8.9% 2 CLSA PHILIPPINES, INC. 314.1 8.9% 3 CREDIT SUISSE SECURITIES (PHIL), INC. 249.4 7.0% 4 COL Financial Group, Inc. 196.6 5.5% 5 J.P. MORGAN SECURITIES PHILIP
Slide 7: Corporate Milestones
Corporate Milestones '* COL's IPO for PSE listing * Launched the COL PH Trading platform + PSE approved COLs application asa trading participant Became licensed by the SEC to conduct business as a broker and seller of securitiesin the Philippines * Official change of Coporate name to COL FINANCIAL G
Slide 8: Bulk of Revenues Generated from Commissions & Interest
REVENUE BREAKDOWN Bulk of Revenues Generated from 0.2% Others 1.6% Trailer Fees Commissions & Interest COL’s Philippine operations account for 99.1% 48.6% Interest of revenues. Commissions from both Philippines and HK account for 49.7% of revenues. 0.9% HK Com 9.3% PH Com-Agency & Advisory Interest
Slide 9: Key Highlights: Financial & Growth Highlights
Company Financial & Growth Overview Operating Plans Highlights Key Highlights 9
Slide 10: Key Highlights: Positives and Negatives
Key Highlights Positives Negatives Interest income and trail fees Commission revenues registered registered double digit growth double digit declines Sustained growth in new accounts Market share of value turnover dropped to 5.5% Margin business recovered Profits fell by 10.6%, recurring profits dro
Slide 11: 2019 Net Income -10.6% Y/Y
CONSOLIDATED INCOME STATEMENT (IN PHP MIL) CHANGE 2018 2019 AMOUNT % 2019 Net Income -10.6% Y/Y Income Commissions 702.9 539.0 (163.9) -23.3% Interest 422.2 527.7 105.5 25.0% 2019 net income fell by 10.6% to Php458.4 Mil. Trailer Fees 14.8 17.4 2.6 17.4% Consolidated revenues were down 6.1% to Php1,
Slide 12: Lower Recurring Expenses
Lower Recurring Expenses BREAKDOWN OF EXPENSES (IN PHPMIL) CHANGE 2018 2019 Although operating expenses increased by 5.9%, recurring AMOUNT % expenses fell by 2.5% to Php453.5 Mil. Trading Related Expenses Commission expenses 60.6 40.4 -20.2 -33.4% Operating expenses were pulled down in 2018 by the
Slide 13: Lower Recurring Expenses
Lower Recurring Expenses BREAKDOWN OF EXPENSES (IN PHPMIL) CHANGE 2018 2019 Personnel costs and professional fees which together AMOUNT % account for almost 60% of fixed operating costs, fell by Trading Related Expenses 5.2% to Php221.5 Mil as bonuses were cut to reflect the Commission expenses 60.6
Slide 14: Lower Market Volumes Partly Offset by Higher Interest Income
REVENUE BREAKDOWN (IN PHPMIL) Lower Market Volumes Partly Offset by Higher Interest CHANGE 2018 2019 AMOUNT % Income Philippines Commission 687.4 529.2 (158.2) -23.0% Revenues from Philippine operations decreased by 5.7% Self-directed 562.7 428.3 (134.3) -23.9% Agency & advisory 124.7 100.8 (23.9) -
Slide 15: Lower Market Volumes Partly Offset by Higher Interest Income
REVENUE BREAKDOWN (IN PHPMIL) Lower Market Volumes Partly Offset by Higher Interest CHANGE 2018 2019 AMOUNT % Income Philippines Commission 687.4 529.2 (158.2) -23.0% Trailer fees increased by 17.4% due to the increase in the Self-directed 562.7 428.3 (134.3) -23.9% Agency & advisory 124.7 100.8 (23
Slide 16: Market Share Down, Coming from a High Base
Market Share Down, Coming COMPARATIVE PERFORMANCE (COL VS. PSE) from a High Base CHANGE 2018 2019 AMOUNT % COL’s average daily turnover fell 24.3% Y/Y to Php802.3 Mil in 2019. In contrast, the PSE’s average daily turnover PSE Ave. Daily T/O (PhpMil) 7,147.4 7,235.0 87.6 1.2% was up 1.2%. COL Ave. Da
Slide 17: ROAE Down but still Healthy at 26.7%
ROAE Down but still Healthy at 26.7% SELECTED FINANCIAL INDICATORS CHANGE 2018 2019 AMOUNT % 2019 operating profits were down 13.2% to Php630.4 Mil. Operating Profits Operating profits from the Philippines were down by Philippines 740.8 650.8 (89.9) -12.1% 12.1% to Php650.8 Mil. Hong Kong (14.1) (20
Slide 18: Strong Balance Sheet
Strong Balance Sheet CONSOLIDATED BALANCE SHEET (IN PHPMIL) CHANGE 12/31/18 12/31/19 AMOUNT % Cash & cash equivalents fell by 11.3% to Php8.5 Bil largely due to lower trade payables. Cash & equivalents 9,657.4 8,563.7 (1,093.7) -11.3% Receivables 811.0 864.3 53.2 6.6% Total payables fell by 11.6% to
Slide 19: Sustained Customer Growth
CLIENT BASE +13.6% 332,098 Sustained Customer Growth 292,401 350,000 247,609 300,000 COL’s client base grew by 13.6% Y/Y to 332,098 as of 205,039 end 2019. 250,000 162,330 Average monthly additions during the past 12 200,000 months remained strong at 3,308. 112,827 150,000 100,000 50,000 - 2014 2015
Slide 20: Client Equity Flat
CLIENT EQUITY (PHP MIL) +0.4% 73,102 72,673 72,398 80,000 Client Equity Flat 70,000 Retail 59,290 Insitutional 60,000 46,894 Client equity was flattish Y/Y at Php72.7 Bil as of end 43,290 50,000 2019. 40,000 Although the PSEi ended the year up 4.7%, performance was very volatile during the year, 30,
Slide 21: Margin Loans Up
AVE DAILY MARGIN LOANS (PHP MIL) +15.1% Margin Loans Up 1,400 1,220 Average daily margin loans increased by 15.1% to 1,200 Php617 Mil Y/Y. 971 1,000 As of end 2019, the total number of approved 822 margin accounts was 1,137, flat compared to 2018. 800 617 596 536 30.5% of approved margin accounts ut
Slide 22: Key Highlights: Operating Plans
Company Financial & Growth Overview Operating Plans Highlights Key Highlights 23
Slide 23: Pro Active Growth Plans
Pro Active Growth Plans Maintain leadership by focusing on our consistent, long-term strategic goals PRIORITIES STATEMENT STRATEGIES Expand Client Acquisition #1. Continue to be the leading asset • Set up more investor centers gatherer in the brokerage industry • Enter into tie-ups to expand market
Slide 24: Fund Source's Performance Since Launch
Fund Source’s Performance Since Launch NET SALES VS AUA (IN PHPMIL, ACC TO TYPE OF FUND) TYPE OF FUND TOTAL SALES** % TOTAL TOTAL AUA* % TOTAL Money Market 201.9 6.5% 219.3 6.8% Bond Fund 205.9 6.6% 218.4 6.8% Balanced Fund 176.5 5.6% 177.4 5.5% Equity Fund 2,539.7 81.3% 2,599.8 80.9% Total 3,123.9
Slide 25: Positive Net Sales Despite Challenging Environment
Positive Net Sales Despite Challenging Environment 2019 NET SALES (IN PHPMIL, ACC TO TYPE OF FUND) TYPE OF FUND INDUSTRY* COL Money Market 28,794.6 52.7 Bond Fund -10,581.1 53.0 Balanced Fund -3,605.9 13.5 Equity Fund 1,017.6 128.0 Total 15,625.2 247.2 *FUNDS AVAILABLE IN COL FUND SOURCE ONLY 26
Slide 26: Positive Net Sales Despite Challenging Environment
Positive Net Sales Despite Challenging Environment 2019 NET SALES (IN PHPMIL, ACC TO FUND HOUSE) TYPE OF FUND INDUSTRY* COL % SHARE ALFM -4,388.8 75.6 - ATR -794.7 17.4 - FAMI -694.5 -6.1 - Phil Equity -516.3 54.5 - PAMI 3,139.2 15.7 0.5% SLAMCI 19,337.3 90.1 0.5% Total 16,082.2 247.2 1.5% *FUNDS AV
Slide 27: Average AUA Up
AVERAGE AUA (NON-MONEY MARKET FUNDS ONLY, IN PHP MIL) 3,500.0 2,949.2 2,905.8 2,879.3 2,769.0 2,606.3 3,000.0 2,435.6 2,332.4 2,238.8 2,500.0 2,028.5 Average AUA Up 1,766.5 2,000.0 1,529.1 1,328.4 1,174.0 1,500.0 1,003.8 Trailer fee up due to significant growth in average 753.6 1,000.0 AUA on a year
Slide 28: Growing Number & Percentage of Clients Own MFs
Growing Number & Percentage of Clients Own MFs MF Investors % of Total Clients 50,000.0 16.0% 13.5% 13.2% 12.8% 12.5% 12.4% 12.3% 45,000.0 12.0% 14.0% 11.6% 11.1% 40,000.0 10.4% 12.0% 9.9% 35,000.0 9.5% 8.9% 8.5% 30,000.0 10.0% 7.5% 25,000.0 6.9% 8.0% 44,682 42,913 39,880 38,069 36,349 20,000.0 4.6%
Slide 29: ft wvicher life
© COL FINANCIAL ft wvicher life
Slide 30: 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