WIXLIB

9M21COL InvestorPresentation1

Company Overview2Established andlicensed by the SEC in1999The leading and fastestgrowing online stockbrokerin the PhilippinesFocused on tappingthe underserved retailinvestor base in thestock marketFounder (Edward K. Lee)retains a 21.7% stakeand actively managesthe Company

21.7%24.3%Edward K. LeeOutstanding Shares4.76 BilFree Float1.16 BilMarket Cap*Public*As of end Sept 202114.9%Daiwa Securities Group25.2%Other Directors & Officer13.9%Alexander C. Yu3Php20.6 Bil

BusinessObjectiveTo be the preferred source of financialservices, a trusted provider of guidance andinvestment and a strong organizationcommitted to delivering great value to itscustomers.Our goal is to be Champion of the Filipino Investor4

COL Milestones1999Licensed by the SECto conduct businessas a broker andseller of securitiesin the Philippines2000-2001Began operating theCOL PH onlinetrading platformCitisecOnline HK Ltd.(COL HK) became atrading participant ofthe HK StockExchangeLaunched the COL HKplatform52006Listed in the PSE atPhp0.136/sh2008Launched the COLEasy InvestmentProgram (EIP)2010Launched the fullservice agency andadvisory team calledthe COL PrivateClients Group (PCG)

COL Milestones2012Officially changedcorporate name toCOL FinancialGroup Inc.62014Granted a MutualFund DistributorLicense by the SEC20152017Launched COL FundSource - the first fundsupermarket in thecountryJapan’s DaiwaSecurities Group, Inc.acquired a 14.9%stake in the company

The Biggest Philippine Based Stockbroker9M21 Rank7Broker Name9M21 Value Turnover (Php Bil)% of Total309.09.91COL Financial Group, Inc.2CLSA Philippines Inc216.36.93UBS Securities Philippines Inc198.26.34BDO Securities Corp197.66.35BPI Securities Corp131.64.26Credit Suisse Securities (Phil) Inc129.24.17J.P. Morgan Securities Philippines Inc127.64.18First Metro Sec. Brgke. Corp124.74.09Philippine Equity Partners Inc117.83.810Regis Partners Inc107.93.4Source: PSE

The Biggest Philippine Based StockbrokerTotal Accounts (as of 2020)69%Others8Source: PSE31%COLTotal Online Accounts (as of 2020)53%Others47%COL

Revenue Breakdown 1H21Bulk of RevenuesGenerated fromCommissions and InterestCommissions from both Philippines and HKaccount for 80.6% of revenues.Interest income from margin loans and cashplacements account for 12.6% of revenues.Trailer fees from the distribution of mutualfunds account for 1.5% of revenues.95.3%Others1.5%Trailer Fees12.6% Interest80.6%Commissions

Key Operating HighlightsPositivesNegatives1. Record revenues and profits2. 9M21 profits already above 2020 fullyear profits3. Maintained rank as the country’snumber one stockbroker101. Interest income fell sharply

Pro Forma Consolidated Income Statement (Php Mil)Change9M21 Net Income 98% Y/Y9M21 net income almost doubled to a nine-monthrecord of Php583.2 Mil. The amount is also morethan 2020 full year net income of Php422.2 Mil.Pro forma consolidated revenues were up 50.1%to Php1.0 Bil, also a record high. Growth was ledby the significant jump in commissions, trailerfees, and the booking of Php53.5 Mil in otherincome.Operating profits were up by a faster 80.9% toPhp717.6 Mil as operating expenses increased byonly 6.5%.Profits also benefited from the reduction ineffective tax rate from 25.7% to 18.7%, largely dueto the passage of the CREATE .6%Interest205.4128.3(77.1)-37.6%Trailer Fees12.215.73.428.0%Other ission expenses18.423.95.630.3%Personnel costs91.595.74.24.6%Professional fees33.235.01.85.4%Stock exch. dues & entals & 8%Advertising & %279.5297.818.26.5%Pre-Tax 294.9583.2288.397.8%IncomeTotalExpensesTotalNet Income

Pro Forma Revenue Breakdown (Php Mil)Most Revenue Items UpRevenues jumped by 50.1% led by the significantincrease in commissions and other income.Commission revenues increased 78.6% to Php817.9 Mil,as commissions from self-directed clients jumped 88.5%due to the active trading of third line issues.Other income reversed from a loss as COL booked aPhp52.2 Mil gain from the sale of financial assets.Trailer fees rose by 28.0% due to an increase in assetsunder administration.Interest income fell by 37.6%, largely due to the 50.3%decline in interest income from placements. Yields fellsignificantly due to the BSP’s move to cut rates andbanks’ RRR last year. Banks also reduced deposit ratesbecause of ample liquidity and weak loan demand.Lower interest income from placements was partlyoffset by the 46.7% increase in interest income frommargin 60.078.6%PH-Self-directedPH- Agency & advisoryHK & 6%27.039.612.646.7%178.488.7(89.7)-50.3%Trailer ,015.3339.050.1%66.3%80.6%Self-directed (incl HK)86.4%91.1%Agency & nts86.9%69.2%1.8%1.5%Revenue BreakdownTotal RevenuesRevenue ShareCommissionInterestTrailer Fees

Pro Forma Revenue Breakdown (Php Mil)Most Revenue Items UpSelf-directed clients accounted for the lion’s share of totalcommission revenues at 91.1%.Core commission revenues and trailer fees accounted for82.1% of total revenues, up from 68.1% during the sameperiod last 078.6%PH-Self-directedPH- Agency & advisoryHK & 6%27.039.612.646.7%178.488.7(89.7)-50.3%Trailer ,015.3339.050.1%66.3%80.6%Self-directed (incl HK)86.4%91.1%Agency & nts86.9%69.2%1.8%1.5%Revenue BreakdownTotal RevenuesRevenue ShareCommissionInterestTrailer Fees13

Pro Forma Consolidated Income Statement (Php Mil)Change3Q21 Net Income 12% Y/Y3Q21 net income increased by 12.1% to Php103.7Mil.Pro forma consolidated revenues were up 7.5% toPhp228.1 Mil, led by higher commissions, trailerfees, and other income.Operating profits were up by a faster 9.0% toPhp134.1 Mil as operating expenses increased byonly 5.2%.Profits also benefited from the reduction ineffective tax rate from 24.8% to 22.7%, largely dueto the passage of the CREATE 9%Interest50.144.1(6.0)-12.0%Trailer Fees4.35.41.125.1%Other income0.20.60.3165.6%212.3228.115.87.5%Commission expenses5.58.93.462.3%Personnel costs25.528.83.313.0%Professional fees10.610.90.43.4%Stock exch. dues & Rentals & -0.2%Advertising & l89.294.04.85.4%Pre-Tax Income123.1134.111.09.0%Taxes30.630.4(0.2)-0.5%Net Income92.6103.711.212.1%IncomeTotalExpenses

Pro Forma Breakdown of Expenses (Php Mil)ChangeManageable FixedExpensesOperating expenses increased by 6.5%, largely driven bythe 27.0% jump in trading related expenses.9M20Fixed operating expenses were up slightly by 2.9% toPhp244.8 Mil, as higher personnel costs, professionalfees and communication expenses were offset by lowerrentals & utilities, advertising & marketing, and otherexpenses.15Amount%Trading Related ExpensesCommission expenses18.423.95.630.3%Agency & Advisory16.122.86.741.3%CROs & Others2.21.1-1.1-50.0%Stock exch. dues & fees23.329.05.724.4%41.752.911.327.0%TotalTrading related expenses increased significantly due tothe sharp rise of trading activity. However, the pace wasslower than that of value turnover as self-directedclients accounted for a larger share of total trades.9M21Fixed Operating ExpensesPersonnel costs91.595.74.24.6%Professional ntals & %Advertising & 37.9244.87.02.9%Total Expenses279.5297.818.26.5%

ROAE Jumped to 39.5%Selected Financial Ratios9M20Annualized ROAE improved from 22.8% to 39.5%.The improvement in profitability was driven by thesignificant increase in margins and higher assetturnover.Margins improved due to the strong growth inrevenues, the larger share in commissions from selfdirected clients, and the highly leveraged nature of thestockbrokerage business.Asset turnover increased due to the higher tradingactivity of clients, partly offset by the lower yields oncash placements.169M21Operating Profit Margin58.7%70.7%EBITDA Margin65.7%75.5%Net Margin43.6%57.4%Asset Turnover OAE (Annualized)

Comparative Performance (COL vs. PSE)ChangeStill Number 1COL’s average daily turnover grew strongly by81.9% to Php1.7 Bil in 9M21, outpacing the30.1% growth in the PSE’s average dailyturnover.Consequently, COL’s market share in terms ofvalue turnover improved to 9.9% for the wholemarket and 15.1% for local investors. Thisallowed COL to maintain its rank as the number1 broker in terms of value turnover in the PSEduring the fist nine months of the year.9M20PSE Ave. Daily T/O (PhpMil)6,479.4 8,432.2Amount%1,952.730.1%748.281.9%COL Ave. Daily T/O (PhpMil)913.11,661.3COL Market Share (Total)7.0%9.9%COL Market Share (Local)13.8%15.1%31No. of Transactions - PSE ('000)36,34144,5628,221.122.6%No. of Transactions - COL ('000)7,70711,1023,394.344.0%COL Market Share21.2%24.9%11PSE RankingPSE Ranking179M21

Strong Balance SheetCash & cash equivalents decreased by 40.6% to Php3.4Bil. This was largely due to the placement of morefunds in investment securities to earn higher yields.Note that investment securities at amortized costincreased by 33.9% to Php8.2 Bil.Moreover, clients deployed a larger portion of theirportfolio in the market compared to end 2020. Thiswas also the main reason for the 4.4% drop in tradepayables to Php11.0 Bil.Pro Forma Consolidated Balance Sheet (Php Mil)Change12/31/209/30/21Amount%Cash & cash equivalents5,782.43,434.0-2,348.4-40.6%Trade receivables1,129.9918.9-211.0-18.7%Inv’t sec at amortized cost6,163.08,254.72,091.733.9%Other current assets80.3198.5118.2147.3%HTM investments300.2300.20.00.0%PPE – netOther non-currentassets – er current liabilities271.0118.1-152.9-56.4%Non-current liabilities94.591.0-3.4-3.6%Trade receivables fell by 18.7% to Php918.9 Mil largelydue to the 69% drop in receivables from the clearinghouse as selling transactions as of end September weremuch less compared to end 2020.Total AssetsStockholders’ equity increased by 15.5% to Php2.1 Bildue to the booking of Php583.2 Mil in profits, lessPhp309.4 Mil in cash dividends.Total Liabilities11,866.311,203.1-663.3-5.6%Total Stockholders’ Equity1,828.72,112.1283.315.5%Total Liabilities andStockholder’s .7%BVPS increased to Php0.044/sh.Trade payablesBVPS18

Client BaseAverage monthly additions during the past12 months reached 92,401COL’s client base grew by 18.4% Y/Y to478,673 as of end September 2021.247,609SignificantCustomer Growth437,048 18.4%9M21

Client Equity (Php Mil) ient equity was up 42.1% Y/Y to Php111.0 Bilas of end September 2021.107,346Client Equity up onHigher Deposits, andBetter Market ConditionsNet new cash inflows from retail clients reachedPhp12.5 Bil during the past twelve months. Thesignificant increase in prices of local stocks alsopulled up client equity. The PSEi ended 9M2118.6% higher Y/Y.2020209M209M21

Ave Daily Margin Loans (Php Mil) 42.5%822Margin Loans Up518536As of end September 2021, the total number ofapproved margin accounts was 1,232, higher by4.5% compared to the same period last year.466617664Average daily margin loans increased by 42.5%to Php664 Mil Y/Y.Only 34.3% of approved margin accounts utilizedtheir margin lines. In terms of value of margingranted, 12.4% was utilized during the period inreview.2017212018201920209M209M21

9M21 Net Sales (in Php Mil, Acc to Type of Fund)COL Accounted for3.4% ofIndustry EquityFund SalesNet SalesIndustryCOL% ShareMoney 0.213.4-5.8%Equity fund4,436.9149.03.4%Feeder fund*2,836.838.31.4%Total*3Q21 only2246,518.0 208.20.4%

3Q21Average AUA UpTrailer fees up due to increase inaverage AUA on a Y/Y and YTD basisduring the first nine .43,274.63,483.63,529.53,742.6Average AUA(Non-Money Market Funds Only, in Php Mil)Non-Money Market MF Ave AUASource: PIFA, COL estimates

3%12.0%11.6%MF 07,5263.4%20,000.05,244Growing Number, but lower Percentageof Clients Owned MFs% of Total Clients16.0%14.0%12.0%10.0%8.0%6.0%4.0%2.0%0.0%

0,000.042,91339,88038,06936,34912.3%12.0%11.6%MF 3.4%20,000.05,244Growing Number, but Lower Percentage of Clients Own MFs% of Total RCE: COL ESTIMATES25