Capital Securities Corp. · TWSE:6005
Capital Securities — Q4 2022 Earnings Presentation
36 slides from Capital Securities's earnings presentation, Mar 29, 2023
Slide 1: Capital Securities Corporation Institutional Investor Conference
Capital Securities Corporation Institutional Investor Conference March 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
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Slide 5: Shareholder Structure
Shareholder Structure Data as of April 29, 2022 Financial Government institutions agencies Foreign 4.19% 0.26% institutions and individuals 17.83% Other juristic persons 43.28% Individuals 34.44% 4
Slide 6: Basic Information
Basic Information Stock code: 6005 Paid-in capital: NTD21.709bn Number of branches in Taiwan: 53 Number of employees: 1,897 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 current loss for Dec 31, 2022 Feb 28, 2023 period 2022 JAN~FEB23 Taiwan Capital Futures Corp. NTD 2,104,376 6,781,388 781,860 6,910,169 139,445
Slide 10: Organizational Structure
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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 Consolidated net income before tax 4,382,700 6,227,509 1,846,051 Consolidated net income 3,840,679 5,461,649 1,179,016 Net income attributable to shareholders of the parent 3,569,529 5,249,590 840,040 company EPS (NTD) 1.64 2.42
Slide 13: Consolidated Balance Sheet (summary)
Consolidated Balance Sheet (summary) (NTD’000) Item Dec 31, 2021 Dec 31, 2022 Current assets 185,983,038 171,397,616 Non-current assets 17,710,901 20,219,025 Total assets 203,693,939 191,616,641 Current liabilities 159,485,189 150,886,125 Non-current liabilities 2,735,166 2,039,403 Total liabilities
Slide 14: Consolidated Comprehensive Income Statement (summary)
Consolidated Comprehensive Income Statement (summary) (NTD’000) Item 2021 2022 Revenue 13,281,753 8,219,057 Operating expenses and costs 7,961,426 7,681,534 Operating income 5,320,327 537,523 Other income and expenses 907,182 1,308,528 Net income before tax 6,227,509 1,846,051 Income tax expense 765
Slide 15: Earnings Breakdown by Major Business
Earnings Breakdown by Major Business 2021 2022 200% 162% 150% 100% 60% 59% 50% 25% 6% 9% 9% 0% -50% -100% -150% -130% 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 2022 2022 Market share in brokerage 3.62% 8 Market share in margin financing 5.30% 6 Trust business-AUM NTD13.5bn 6 Number of warrants issued 6,192 3 Value of warrants issued NTD67.9bn 3 Value of structured products issued NTD
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% 358% 327% 337% 350% 320% 300% 250% 200% 150% 100% 50% 0% 12/31/2021 3/31/2022 6/30/2022 9/30/2022 12/31/2022 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: FEB23 Operating Results
FEB23 Operating Results Unit: NTD’000 Entity FEB23 JAN~FEB23 Net income before tax 345,737 704,699 Net income 341,167 733,349 EPS (NTD) 0.16 0.34 Consolidated FEB23 JAN~FEB23 Net income before tax 403,015 804,911 Net income 375,482 794,075 ※ Unaudited 19
Slide 21: JAN~FEB23 Earnings Breakdown by Major Business
JAN~FEB23 Earnings Breakdown by Major Business JAN~FEB23 50% 49% 40% 30% 27% 19% 20% 10% 5% 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~FEB23 JAN~FEB23 Market share in brokerage 3.50% 9 Market share in margin financing 5.24% 6 Trust business-AUM NTD13.479bn 5 Number of warrants issued 1,029 3 Value of warrants issued NTD9.63bn 3 Value of structured product
Slide 23: Prospect and Outlook
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Slide 24: Our Vision Our Belief
Business Philosophy Our Vision Our Belief • To create long-term • The Capital Group in and rewarding Chinese means partnerships with our "benefit for many" clients by offering which embodies our high value-added commitment to public financial services interests and which exceed client contribution t
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 “Annual Excellence Award” for total turnover performance and “Annual Efficiency Award” for average turnover performance from the Taiwan Stock Exchange Corporation (TWSE) in the 2022 Call (Put) Warrant Issuer Incentive Programs Received “Top Issuer Award” from the Taipei Excha
Slide 28: List of Awards (continued)
List of Awards (continued) Received “Top Issuer Award” at the 2022 Listed Received “Best Digital Financial Service Award” Call (Put) Warrant Issuer Competition at the 2022 Excellent Securities Evaluation Received “Annual Excellence Award” for total turnover performance Received “Annual Efficiency Aw
Slide 29: Sustainability Development & Capital Securities' Practices
Sustainability Development Ⅳ & 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: Stage Targets and GHG Inventory Schedule
Stage Targets and GHG Inventory Schedule In response to Taiwan’s Financial Supervisory Commission's (FSC) promotion of the Sustainable Development Roadmap and Taiwan’s National Development Council’s (NDC) Taiwan 2050 Net-Zero Emission Pathway, Capital Securities has been actively conducting greenhou
Slide 34: Programs & Achievements on Sustainable Development
Programs & Achievements on Sustainable Development Held blood drive “Love from Capital for Charity” to deliver happiness to all corners of the society. Promoted “Capital Securities Love Reading Program” to advance the education in rural Taiwan with employees volunteering in story book pair-readi
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
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