#1Presentation COL Investor 1H 2022 obe: 091 Sun: 093 Smart: 09: Address: U Center, San 2 for a richer life HQ 14 26 Globe: 09. Sun: 0933 Smart: 0928-21. Address: Unit 1 P& Center. San Isidro A Like us on Facebook: Bar 10 Pukion Tra DIFFERENCE SPLIT THE NEVER COLIN#2COL Investor Presentation Company Overview Established and licensed by the SEC in 1999 The leading and fastest- growing online stockbroker in the Philippines 尹 2 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 14:21 < COL FINANCIAL Every Fil Stocks and Mun Advisory We are now accepting account application patience and understanding#33 COL Investor Presentation Outstanding Shares 4.76 Bil 24.9% Public 21.7% Edward K. Lee Free Float Market Cap* *As of end June 2022 14.9% Daiwa Securities Group 24.9% Other Directors & Officer 13.9% Alexander C. Yu 1.16 Bil Php16.4 Bil COL FINANCIAL#44 COL Investor Presentation 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. TRADER Position Tradir Our goal is to be Champion of the Filipino Investor COL COL FINANCIAL#55 COL Investor Presentation COL Milestones 1999 2000-2001 2006 2008 2010 Licensed by the SEC to conduct business as a broker and seller of securities in the Philippines Began operating the COL PH online trading platform Listed in the PSE at Php0.136/sh Launched the COL Easy Investment Program (EIP) Launched the full- service agency and advisory team called the COL Private Clients Group (PCG) CitisecOnline HK Ltd. (COL HK) became a trading participant of the HK Stock Exchange Launched the COL HK platform ep COL PRIVATE CLIENTS COL FINANCIAL#66 COL Investor Presentation COL Milestones 2012 2014 2015 2017 Officially changed corporate name to OCOL Financial Group Inc. Granted a Mutual Fund Distributor License by the SEC Launched COL Fund Source the first fund supermarket in the country Japan's Daiwa Securities Group, Inc. acquired a 14.9% stake in the company COL FINANCIAL PHILIPPINES BONDS BALANCED FUND EQUITIES Daiwa Securities Group Inc. COL FINANCIAL#7COL Investor Presentation The Biggest Philippine Based Stockbroker 1H22 Rank Broker Name 1H22 Value Turnover (Php Bil) % of Total 1 UBS Securities Philippines Inc 129.4 7.1 2 CLSA Philippines Inc 123.7 6.7 3 Mandarin Securities Corp 118.4 6.5 4 COL Financial Group, Inc 98.0 5.3 5 Credit Suisse Securities (Phil) Inc 87.5 4.8 6 BPI Securities Corp 85.0 4.6 7 Macquarie Capital Securities (Phil) Inc 81.6 4.4 8 J.P. Morgan Securities Philippines Inc 80.6 4.4 9 Regis Partners, Inc 79.6 4.3 10 Maybank Securities, Inc 71.1 3.9 Source: PSE 7 COL FINANCIAL#800 8 COL Investor Presentation The Biggest Philippine Based Stockbroker Total Accounts (as of 2021) Total Online Accounts (as of 2021) 73% 27% 58% 42% Others Others COL COL Source: PSE COL FINANCIAL#99 COL Investor Presentation Revenue Breakdown 2021 2.6% Trail Fees 0.1% Others 22.6% Interest Bulk of Revenues Generated from Commissions and Interest Commissions accounted for 74.6% of revenues. Interest income from margin loans and cash placements accounted for 22.6% of revenues. Trailer fees from the distribution of mutual funds accounted for 2.6% of revenues. 74.6% Commissions COL FINANCIAL#1010 COL Investor Presentation Key Operating Highlights Positives 1. Interest income stabilized and grew Q/Q and Y/Y 2. Trail fee remained stable and grew Y/Y 3. Margin utilization rate increased Negatives 1. Commission revenues and net income fell sharply, as market sentiment deteriorated 2. Rank and market share in the PSE slipped COL FINANCIAL#1111 COL Investor Presentation 1H22 Net Income -71.1% Y/Y Pro Forma Consolidated Income Statement (Php Mil) Change 1H21 1H22 Amount % 1H22 net income fell by 71.1% to Php138.7 Mil due to the significant decline in commissions in 2Q22, and the high base in 1Q21. Pro forma consolidated revenues were down 50.7% to Php388.4 Mil as commissions fell by 58.5% and due to the absence of other income. This was partly offset by the 31.4% increase in interest income and 11.0% rise in trailer fees. Operating profits fell by a faster 68.6% to Php183.5 Mil as operating expenses remained flat despite the drop in revenues. Taxes last year were also lower than normal due to the booking of one time benefit from the passage of the CREATE law. Income Commissions 639.9 265.7 (374.2) -58.5% Interest 84.2 110.6 26.4 31.4% Trailer Fees 10.2 11.4 1.1 11.0% Other income 52.9 0.8 (52.1) -98.5% Total 787.2 388.4 (398.8) -50.7% Expenses Commission expenses 15.1 16.2 1.1 7.3% Personnel costs 66.9 74.2 7.3 10.9% Professional fees 24.1 22.4 (1.6) -6.8% Stock exch. dues & fees 21.8 12.5 (9.3) -42.6% Communication 21.1 21.5 0.4 1.8% Rentals & utilities 3.9 4.9 1.0 25.9% Depreciation 32.9 27.3 (5.6) -16.9% Advertising & marketing 1.7 2.9 1.2 71.2% Others 16.4 23.0 6.6 40.0% Total 203.8 204.9 1.1 0.6% Pre-Tax Income 583.5 183.5 (400.0) -68.6% Taxes 104.0 44.8 (59.2) -57.0% Net Income 479.5 138.7 (340.7) -71.1%#12COL Investor Presentation 12 Commissions Hurt by Poor Sentiment Revenues fell by 50.7% due to the significant decline in commissions and the absence of other income. Commission revenues fell by 58.5% to Php265.7 Mil, as commissions from self-directed clients dropped 63.4% to Php217.8 Mil coming from an abnormally high base in the first quarter of last year and as sentiment deteriorated significantly. Recall that speculative issues traded actively in January of last year. Meanwhile, investor sentiment deteriorated starting March of this year due to high inflation, rising rates, an aggressive Fed and the war in Ukraine. The decline in commission from self-directed clients was partly offset by the 4.6% increase in commissions from the agency and advisory group to Php46.0 Mil. Revenues last year also benefited from the booking of gains from the sale of financial assets which did not recur this year. Pro Forma Revenue Breakdown (Php Mil) Change 1H21 1H22 Amount % Revenue Breakdown Commission 639.9 265.7 (374.2) -58.5% PH-Self-directed 595.9 217.8 (378.1) -63.4% PH- Agency & advisory 43.9 46.0 2.0 4.6% HK & others 4.4 1.8 (2.5) -58.0% Interest 84.2 110.6 26.4 31.4% Margin 24.8 28.6 3.8 15.5% Placements 59.4 82.0 22.6 38.0% Trailer Fees 10.2 11.4 1.1 11.0% Others 52.9 0.8 (52.1) -98.5% Total Revenues 787.2 388.4 (398.8) -50.7% Revenue Share Commission 81.3% 68.4% Self-directed (incl HK) 93.8% 82.7% Agency & advisory Interest 6.9% 17.3% 10.7% 28.5% Margin 29.4% 25.8% Placements 70.6% 74.2% Trailer Fees 1.3% 2.9% COL FINANCIAL#1313 COL Investor Presentation Commissions Hurt by Poor Sentiment On the positive side interest income from both margin and placements grew, with the total up by 31.4% to Php110.6 Mil. Interest income in 2Q22 was also higher by 18.6% on a Q/Q basis. Interest income from margin was up by 15.3% to Php28.6 Mil as the value of average daily margin loans increased by 22.3% to Php767Mil. Meanwhile, interest income from placements jumped 38.0% to Php82.0 Mil as the value of cash and investments increased and as average yields improved by around 100 basis points starting in June. Trailer fees were also up by 11.0% to Php11.4 Mil as the average value of non-money market assets under administration increased during the first half of this year. Total Revenues Interest Pro Forma Revenue Breakdown (Php Mil) Change 1H21 1H22 Amount % Revenue Breakdown Commission 639.9 265.7 (374.2) -58.5% PH-Self-directed 595.9 217.8 (378.1) -63.4% PH- Agency & advisory 43.9 46.0 2.0 4.6% HK & others Interest 4.4 1.8 (2.5) -58.0% 84.2 110.6 26.4 31.4% Margin 24.8 28.6 3.8 15.5% Placements 59.4 82.0 22.6 38.0% Trailer Fees 10.2 11.4 1.1 11.0% Others 52.9 0.8 (52.1) -98.5% 787.2 388.4 (398.8) -50.7% Revenue Share Commission 81.3% 68.4% Self-directed (incl HK) 93.8% 82.7% Agency & advisory 6.9% 17.3% 10.7% 28.5% Margin 29.4% 25.8% Placements 70.6% 74.2% Trailer Fees 1.3% 2.9% COL FINANCIAL#1414 COL Investor Presentation Commissions Hurt by Poor Sentiment Self-directed clients continued to account for the lion's share of total commission revenues at 82.7%. Core commission revenues and trailer fees accounted for 71.3% of total revenues. Pro Forma Revenue Breakdown (Php Mil) Change 1H21 1H22 Amount % Revenue Breakdown Commission 639.9 265.7 (374.2) -58.5% PH-Self-directed 595.9 217.8 (378.1) -63.4% PH- Agency & advisory 43.9 46.0 2.0 4.6% HK & others 4.4 1.8 (2.5) -58.0% Interest 84.2 110.6 26.4 31.4% Margin 24.8 28.6 3.8 15.5% Placements 59.4 82.0 22.6 38.0% Trailer Fees 10.2 11.4 1.1 11.0% Others 52.9 0.8 (52.1) -98.5% Total Revenues 787.2 388.4 (398.8) -50.7% Revenue Share Commission 81.3% 68.4% Self-directed (incl HK) 93.8% 82.7% Agency & advisory 6.9% 17.3% Interest 10.7% 28.5% Margin 29.4% 25.8% Placements 70.6% 74.2% Trailer Fees 1.3% 2.9% COL FINANCIAL#1515 COL Investor Presentation Flattish Expenses Operating expenses were flat, as higher fixed operating expenses were offset by lower trading. related expenses. Fixed operating expenses were up by 5.6% to Php83.9 Mil, due to higher personnel costs, rental and utilities, advertising and marketing, and other expenses. Meanwhile, trading related expenses fell 22.1% to Php28.7 Mil due to lower trading activity. Pro Forma Breakdown of Expenses (Php Mil) Change 1H21 1H22 Amount % Trading Related Expenses Commission expenses 15.1 16.2 1.1 7.3% Agency & Advisory 14.2 15.7 1.5 10.7% CROS& Others 0.9 0.5 -0.4 -46.4% Stock exch. dues & fees 21.8 12.5 -9.3 -42.6% Total 36.8 28.7 -8.2 -22.1% Fixed Operating Expenses Personnel costs 66.9 74.2 7.3 10.9% Professional fees 24.1 22.4 -1.6 -6.8% Communication 21.1 21.5 0.4 1.8% Rentals & utilities 3.9 4.9 1.0 25.9% Depreciation 32.9 27.3 -5.6 -16.9% Advertising & Mktg 1.7 2.9 1.2 71.2% Others 16.4 23.0 6.6 40.0% Total 167.0 176.2 9.3 5.6% Total Expenses 203.8 204.9 1.1 0.6% COL FINANCIAL#1616 COL Investor Presentation ROAE Normalized to 14.1% Annualized ROAE normalized from 50.1% to 14.1%. Profitability deteriorated as commissions fell, leading to weaker margins and lower asset turnover. Margins dropped as operating expenses remained the same even with the decline in trading volumes, due to the highly leveraged nature of the stockbrokerage business. Asset turnover fell largely due to the drop in clients' trading activity. Selected Financial Ratios 1H21 1H22 Operating Profit Margin 74.1% 47.2% EBITDA Margin 78.3% 54.3% Net Margin 60.9% 35.7% Asset Turnover 12.1% 5.8% Asset/Equity 6.1 7.5 ROAE 50.1% 14.1% COL FINANCIAL#1717 COL Investor Presentation Now Number 4 Comparative Performance (COL vs. PSE) Change 1H21 1H22 Amount % COL's average daily turnover fell 59.8% to Php803.1 Mil in 1H22. This is much steeper than the PSE's 16.1% decline. COL's market share in terms of value turnover normalized to 5.3% for the whole market from 11.2% during the same period last year. This was partly due to the increase in foreign investors' share of total value turnover to 44.8% during 1H22 from 33.5% during the same period last year. Nevertheless, COL remained the biggest local stockbroker largely catering to retail investors. Due to the lower value turnover, COL's rank slipped to number 4 after being the number 1 broker in the PSE for two years in a row. PSE Ave. Daily T/O (PhpMil) 8,959.2 7,519.3 (1,440.0) -16.1% COL Ave. Daily T/O (PhpMil) COL Market Share (Total) 1,999.6 803.1 (1,196.5) -59.8% 11.2% 5.3% COL Market Share (Local) 16.8% 9.7% 1 4 33,175 20,904 (12,270.9) -37.0% 8,929 3,013 (5,916.5) -66.3% 26.9% 14.4% 1 1 PSE Ranking No. of Transactions - PSE ('000) No. of Transactions - COL ('000) COL Market Share PSE Ranking COL FINANCIAL#18COL Investor Presentation The Biggest Philippine Based Stockbroker 1H22 Rank Broker Name 1H22 Value Turnover (Php Bil) % of Total 1 UBS Securities Philippines Inc 129.4 7.1 2 CLSA Philippines Inc 123.7 6.7 3 Mandarin Securities Corp 118.4 6.5 4 COL Financial Group, Inc 98.0 5.3 5 Credit Suisse Securities (Phil) Inc 87.5 4.8 6 BPI Securities Corp 85.0 4.6 7 Macquarie Capital Securities (Phil) Inc 81.6 4.4 8 J.P. Morgan Securities Philippines Inc 80.6 4.4 9 Regis Partners, Inc 79.6 4.3 10 Maybank Securities, Inc 71.1 3.9 Source: PSE 18 COL FINANCIAL#1919 COL Investor Presentation Strong Balance Sheet Cash & cash equivalents increased by 42.3% to Php2.5 Bil largely due to an increase in clients' unutilized funds. Investment securities at amortized cost was flattish at Php9.3 Bil while HTM investments increased by 39.3% to Php696.7 Mil. Trade receivables fell slightly by 1.9% to Php940.8 Mil largely due to the lower unsettled buying transaction of post-paid clients and lower availment of margin loans as of end June compared to end December. Trade payables increased by 11.3% to Php11.8 Bil largely due the increase in clients' cash position and their larger net buying transactions as of end June compared to end December. Pro Forma Consolidated Balance Sheet (Php Mil) Change % 12/31/21 6/30/22 Amount Cash & cash equivalents Trade receivables 1,733.5 2,466.5 733.0 42.3% 958.8 940.8 -18.0 -1.9% Inv't sec at amortized cost Other current assets HTM investments 9,374.3 9,338.2 -36.1 -0.4% 232.8 250.5 17.8 7.6% 500.2 696.7 196.5 39.3% PPE - net 95.1 85.8 -9.2 -9.7% Other non-current 86.2 84.3 -1.8 -2.1% assets - net Total Assets 12,980.8 13,863.0 882.2 6.8% Trade payables 10,590.2 11,783.6 1,193.5 11.3% Other current liabilities 185.6 124.1 -61.5 -33.1% Non-current liabilities Total Liabilities Total Stockholders' Equity Total Liabilities and Stockholder's Equity 106.1 107.4 1.3 1.2% 10,881.9 2,098.9 12,015.1 1,847.8 1,133.2 10.4% -251.1 -12.0% 12,980.8 13,863.0 882.2 6.8% BVPS 0.044 0.038 -0.006 -12.0% COL FINANCIAL#2020 COL Investor Presentation Strong Balance Sheet Stockholders' equity fell by 12.0% to Php1.8 Bil due to the payment of Php404.6 Mil worth of cash dividends, partly offset by the booking of Php138.7Mil in profits. BVPS likewise fell to Php0.038/sh. Pro Forma Consolidated Balance Sheet (Php Mil) 12/31/21 6/30/22 Amount Change % Cash & cash equivalents 1,733.5 2,466.5 733.0 42.3% Trade receivables 958.8 940.8 -18.0 -1.9% Inv't sec at amortized cost 9,374.3 9,338.2 -36.1 -0.4% Other current assets 232.8 250.5 17.8 7.6% HTM investments 500.2 696.7 196.5 39.3% PPE - net 95.1 85.8 -9.2 -9.7% Other non-current 86.2 84.3 -1.8 -2.1% assets - net Total Assets 12,980.8 13,863.0 882.2 6.8% Trade payables 10,590.2 11,783.6 1,193.5 11.3% Other current liabilities 185.6 124.1 -61.5 -33.1% Non-current liabilities 106.1 107.4 1.3 1.2% Total Liabilities 10,881.9 Total Stockholders' Equity 2,098.9 12,015.1 1,847.8 1,133.2 10.4% -251.1 -12.0% Total Liabilities and Stockholder's Equity 12,980.8 13,863.0 882.2 6.8% BVPS 0.044 0.038 -0.006 -12.0% COL FINANCIAL#2121 COL Investor Presentation Customer Base Up Y/Y COL's client base grew by 5.3% Y/Y to 492,642 as of end June 2022. Average monthly additions during the past 12 months reached 2,073. The increase would have been larger if not for the suspension of 14,439 dormant accounts in January. Excluding the impact of the said suspensions, the number of accounts would have grown 8.4% Y/Y exceeding 500,000. 292,401 332,098 2018 2019 2020 2021 1H21 1H22 COL FINANCIAL 437,048 489,154 Client Base +5.3% 467,765 492,642#2222 COL Investor Presentation Client Equity Down on Lower Asset Values Client equity was down 8.9% Y/Y to Php101.9 Bil as of end June 2022. Client equity fell due to lower asset values, partly offset by new deposits from clients. As of end June, the PSEi index was down 10.8% compared to the same period last year, while net new cash inflows from retail clients reached Php4.3 Bil during the past twelve months. 72,398 72,673 2018 2019 2020 2021 1H21 1H22 COL FINANCIAL Client Equity (Php Mil) -8.9% 107,346 112,556 111,868 101,946#2323 COL Investor Presentation Margin Loans Up Average daily margin loans increased by 22.3% to Php767 Mil Y/Y. As of end June, the total number of approved margin accounts was 1,194, slightly lower compared to 1,243 during the same period last year. Roughly the same number of clients utilized their margin lines at 397 or 33.2%. In terms of value of margin granted, 14.1% was utilized during the period in review, up from 11.7% Y/Y. 536 2018 2019 2020 2021 1H21 1H22 COL FINANCIAL 617 518 Ave Daily Margin Loans (Php Mil) ▲ +22.3% 719 627 767#2424 COL Investor Presentation MF Net Sales still Positive due to Money Market and Feeder Funds COL's MF distribution business still generated net sales of Php127.8 Mil during 1H22, due to Money Market funds and the introduction of Feeder Funds. Around Php99.8 Mil or 78.1% of total net sales. generated during the period were attributable to Money Market funds, while Php67.3 Mil or 52.6% were attributable to the distribution of Feeder Funds that were launched only in July last year and January this year. Bond and Equity funds suffered from net outflows due to rising inflation, interest rates, Fed rate hikes and the war in Ukraine which negatively affected their performance. 57.1 94.5 38.3 1Q21 2Q21 3Q21 4Q21 1Q22 29.6 -27.0 COL FINANCIAL 36.9 2Q22 1.8 37.5 MF Net Sales Acc to Fund Type (Php Mil) 29.7 Feeder Fund Equity Fund Balanced Fund Bond Fund Money Market#2526 COL Investor Presentation Average AUA UP Y/Y, Down Q/Q Trailer fees up due to increase in average non-money market AUA on a Y/Y basis. However, AUA was down Q/Q despite the strong sales of feeder funds due to the weak performance of funds during the 2Q22. Source: COL estimates 1Q21 2Q21 3,483.6 3,529.5 3Q21 4Q21 ■Non-Money Market MF Ave AUA Average AUA (Non-Money Market Funds Only, in Php Mil) 3,742.6 1Q22 2Q22 COL FINANCIAL 3,874.3 3,997.8 3,778.3#2627 COL Investor Presentation 70,000 60,000 50,000 40,000 46,168 13.5% 30,000 20,000 10,000 0 52,925 57,682 13.9% 14.3% Percentage of Clients Owning MFs Rebounded 60,268 60,418 13.8% 13.1% IMF Investors 60,866 13.0% 61,489 12.8% -% of Total Clients 62,273 12.7% 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 61,044 12.6% 11.5% 63,870 12.0% COL FINANCIAL 13.0% 12.5% 13.0% 13.5% 14.0% 14.5%#2728 COL Investor Presentation MF only Clients Continued 18,000 to Grow 16,000 14,000 The number of clients who only owned MFS continued to increase. 12,000 10,000 As of end June, there were 15,850 clients who only owned MFs, up 14.6% Y/Y and 1.2% Q/Q. Of the said number, 11,161 or 70.4% were Starter clients while 4,549 or 28.7% were Plus clients. 8,000 6,000 4,000 2,000 0 MF Only Clients 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 Starter Plus Premium COL FINANCIAL#28Ⓒ COL FINANCIAL for a richer life#2930 COL Investor Presentation 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, may contain statements relating to future expectations and/or projections of the Company by its management team, with respect to the Company. These statements are: (i) presented on the basis of current assumptions which the Company's management team believes to be reasonable and presumed correct based on available data at the time these were made, (ii) based on assumptions regarding the Company's present and future business strategies, and the environment in which it will operate in the future, (iii) a reflection of our current views with respect to future events and not a guarantee of future performance, and (iv) subject to certain factors which may cause some or all of the assumptions not to occur or cause actual results to diverge significantly from those projected. Any and all forward looking statements made by the Company or any persons acting on its behalf are deemed qualified in their entirety by these cautionary statements. This presentation is solely for informational purposes and should in no way be construed as a solicitation or an offer to buy or sell securities or related financial instruments of the Company. COL FINANCIAL