Capital Securities Corp. · TWSE:6005
Capital Securities — Q1 2023 Earnings Presentation
36 slides from Capital Securities's earnings presentation, May 26, 2023
Slide 1: Capital Securities Corporation Institutional Investor Conference
Capital Securities Corporation Institutional Investor Conference May 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 Ⅰ Company Profile Ⅱ Operation Overview Ⅲ Prospect and Outlook Ⅳ Sustainability Development & Capital Securities’ Practices 2
Slide 4: Company Profile
Ⅰ Company Profile Ⅱ Operation Overview Ⅲ Prospect and Outlook Ⅳ Sustainability Development & Capital Securities’ Practices 3
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: 1,864 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 100% 100% 100% 56.58% 20% 100% 100% 100% 100% 100% 100% 100% 51% 100% 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 for loss for Mar 31, 2023 Apr 30, 2023 JAN~MAR23 JAN~APR23 Taiwan Capital Futures Corp. NTD 2,104,376 7,015,327 241,462 7,089,683 309,559 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
Ⅰ Company Profile Ⅱ Operation Overview Ⅲ Prospect and Outlook Ⅳ Sustainability Development & Capital Securities’ Practices 10
Slide 12: Financial Data Over the Past Three Years
Financial Data Over the Past Three Years (NTD’000) Item 2020 2021 2022 JAN~MAR23 Consolidated net income before tax 4,382,700 6,227,509 1,846,051 1,257,500 Consolidated net income 3,840,679 5,461,649 1,179,016 1,214,591 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 Mar 31, 2022 Mar 31, 2023 Current assets 179,973,591 183,367,022 Non-current assets 17,896,351 22,172,192 Total assets 197,869,942 205,539,214 Current liabilities 153,381,913 163,220,378 Non-current liabilities 2,588,965 2,020,153 Total liabilities
Slide 14: Consolidated Comprehensive Income Statement (summary)
Consolidated Comprehensive Income Statement (summary) (NTD’000) Item JAN~MAR22 JAN~MAR23 Revenue 2,054,009 2,830,885 Operating expenses and costs 1,813,992 2,060,262 Operating income 240,017 770,623 Other income and expenses 231,166 486,877 Net income before tax 471,183 1,257,500 Income tax expense
Slide 15: Earnings Breakdown by Major Business
Earnings Breakdown by Major Business JAN~MAR22 JAN~MAR23 150% 137% 100% 51% 50% 29% 29% 17% 5% 3% 0% -50% -71% -100% 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~MAR23 JAN~MAR23 Market share in brokerage 3.50% 10 Market share in margin financing 5.31% 5 Trust business-AUM NTD13.68bn 5 Number of warrants issued 1,613 3 Value of warrants issued NTD14.8bn 3 Value of structured product
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 ※ The distribution of FY22 earnings has been approved by the BoD on March 13, 2023, pending the general shareholder meeting's approval. 16
Slide 18: Capital Adequacy Ratio
Capital Adequacy Ratio Capital adequacy ratio Minimum capital adequacy ratio: 150% 500% 450% 400% 363% 327% 337% 328% 350% 320% 300% 250% 200% 150% 100% 50% 0% 3/31/2022 6/30/2022 9/30/2022 12/31/2022 3/31/2023 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: APR23 Operating Results
APR23 Operating Results Unit: NTD’000 Entity APR23 JAN~APR23 Net income before tax 221,078 1,303,828 Net income 185,599 1,291,536 EPS (NTD) 0.09 0.59 Consolidated APR23 JAN~APR23 Net income before tax 269,169 1,523,106 Net income 215,224 1,426,253 ※ Unaudited 19
Slide 21: JAN~APR23 Earnings Breakdown by Major Business
JAN~APR23 Earnings Breakdown by Major Business JAN~APR23 50% 48% 40% 32% 30% 20% 17% 10% 3% 0% Brokerage Proprietary trading & Underwriting & Others Non-operating Derivatives & Fixed investments income ※ Unaudited 20
Slide 22: Business Performance and Market Ranking
Business Performance and Market Ranking Figures in Market ranking in Item JAN~APR23 JAN~APR23 Market share in brokerage 3.50% 10 Market share in margin financing 5.32% 6 Trust business-AUM NTD13.924bn 6 Number of warrants issued 2,129 3 Value of warrants issued NTD19.6bn 3 Value of structured produc
Slide 23: Prospect and Outlook
Ⅰ Company Profile Ⅱ Operation Overview Ⅲ Prospect and Outlook Ⅳ Sustainability Development & Capital Securities’ Practices 22
Slide 24: Business Philosophy: Our Vision, Our Belief
Business Philosophy O u r Vi s i o n • To create long-term and rewarding partnerships with our clients by offering high value-added financial services which exceed client expectations Our Belief • The Capital Group in Chinese means "benefit for many" which embodies our commitment to public interests
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 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 “Warrant Sales Progress Award” from the Economic Daily in the 13th Call (Put) Warrant Issuer Competition
Slide 28: List of Awards (continued)
List of Awards (continued) 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 “Warrant Sales Progress Award” from the Economic Daily in the 13th Call (Put) Warrant Issuer
Slide 29: Sustainability Development & Capital Securities' Practices
Ⅰ Company Profile Ⅱ Operation Overview Ⅲ Prospect and Outlook Ⅳ Sustainability Development & Capital Securities’ Practices 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: Our Sustainable Development Committee Structure
Our Sustainable Development Committee Structure Board of Capital Securities established an Directors (BoD) ESG Committee on 01/21/2021. It was upgraded to a functional unit under the company’s board of Sustainable Development Committee: Committee members shall be approved by the directors and was re
Slide 33: 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 34: Programs & Achievements on Sustainable Development
Programs & Achievements on Sustainable Development Capital Securities Awarded Active Blood Donation Group Capital Securities has held an annual blood drive for 15 years. Over the years, the company has donated more than 15,000 bags of blood to those in need. It is never hesitant to help when it come
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 Selected as a constituent of TWSE Corporate Gover
Slide 36: Thank you
che CAPITAL Thank you Cupital Cure wait 35 Bit: BB+ LB