Ifs Capital Ltd. · SGX:I49
Ifs Capital — H1 2013 Earnings Presentation
38 slides from Ifs Capital's earnings presentation, Aug 7, 2013
Slide 1: SGX Financial Statement and Related Announcement
FINANCIAL STATEMENT AND RELATED ANNOUNCEMENT Page 1 of 1 Print this page Second Quarter and Half Year Results * Financial Statement And Related Announcement * Asterisks denote mandatory information Name of Announcer * IFS CAPITAL LIMITED Company Registration No. 198700827C Announcement submitted on
Slide 2: Table of Contents
(Registra ation no: 198700 0827C) Seco ond Quarterr And Half-Y Year Unaudited Financiial Statemen nts and Dividend Anno ouncement for the t Period EEnded 30 Jun ne 2013 TAB BLE OF CO ONTENTS Ite em Description n P Page No. Noo. 1(a a)(i) Consoolidated Inco ome Stateme ent and Statement of Com mprehe
Slide 3: Consolidated Income Statement 2Q and Half-Year
(Regisstration no: 1987 700827C) S Second Qua arter And Half-Year H Un naudited Financial Sta atements an nd Dividend d Announce ement for th he P Period Ende ed 30 June 2 2013 1 1(a)(i) Consolidated Incom me Statement for the Secon nd Quarter An nd Half-Year Ended E 30 Jun ne Note 2nd Qtr 2nd Qtr 1
Slide 4: Consolidated Statement of Comprehensive Income
Consolidated Statement of Comprehensive (Loss)/Income for the Second Quarter And Half-Year Ended 30 June Note 2nd Qtr 2nd Qtr 1st Half 1st Half 1(a) 2013 2012 +/(-) 2013 2012 +/(-) (ii) S$’000 S$’000 % S$’000 S$’000 % (Loss)/profit for the period (4,529) 2,219 NM (2,749) 3,923 NM Other comprehensive
Slide 5: Explanatory Notes to Consolidated Income Statement
1(a)(ii) Explanatory Notes to Consolidated Income Statement The following items have been included in arriving at Group net (loss)/profit for the period: 2nd Qtr 2nd Qtr 1st Half 1st Half 2013 2012 +/(-) 2013 2012 +/(-) S$’000 S$’000 % S$’000 S$’000 % Investment income - dividend, fee and interest i
Slide 6: Comments on Major Income Statement Variances
1(a)(ii) Explanatory Notes to Consolidated Income Statement (cont’d) Comments on Major Consolidated Income Statement Variances (a) The increase in net interest income for 2nd Quarter 2013 (“2Q 2013”) and 1st Half 2013 (“1H 2013”) was due to growth in the Group’s business volume. (b) The Group’s insu
Slide 7: Currency Translation and Earnings Per Share
(j) The foreign currency translation differences arose from the translation of financial statements of foreign operations whose functional currencies were different from that of the Group’s presentation currency. For 2Q 2013, the translation loss was due to the weakening of currencies of the regiona
Slide 8: Statements of Financial Position
1(b)(i) Statements of Financial Position Group Company 30/06/2013 31/12/2012 30/06/2013 31/12/2012 Note S$’000 S$’000 S$’000 S$’000 Non-current assets Property, plant and equipment 18,139 18,572 15,940 16,202 Intangible assets 514 680 210 250 Subsidiaries - - 63,679 63,679 Other investments (a) 28,3
Slide 9: Comments on Financial Position Variances
Comments on Major Statements of Financial Position Variances (a) The increase in other investments under non-current assets was due to the Group’s participation in convertible loan facility and a property related fund. (b) The decrease in loans, advances, hire purchase and leasing receivables under
Slide 10: Group's Borrowings and Net Asset Value
1(b)(ii) Group’s Borrowings As at 30/06/2013 As at 31/12/2012 S$’000 S$’000 (Unsecured) (Unsecured) Amount repayable in one year or less, or on demand 231,672 206,794 Amount payable after one year 25,179 43,132 256,851 249,926 Details of any collateral Nil. 1(b)(iii) Net Asset Value Group Company 30
Slide 11: Consolidated Statement of Cash Flows
1(c) Consolidated Statement of Cash Flows for the Second Quarter And Half-Year Ended 30 June 2nd Qtr 2nd Qtr 1st Half 1st Half 2013 2012 2013 2012 Note S$’000 S$’000 S$’000 S$’000 Cash flows from operating activities (Loss)/profit for the period (4,529) 2,219 (2,749) 3,923 Adjustments for: Amortisat
Slide 12: Consolidated Statement of Cash Flows (cont'd)
1(c) Consolidated Statement of Cash Flows for the Second Quarter And Half-Year Ended 30 June (cont’d) 2nd Qtr 2nd Qtr 1st Half 1st Half 2013 2012 2013 2012 Note S$’000 S$’000 S$’000 S$’000 Cash flows from investing activities Proceeds from sale of property, plant and equipment - - 41 62 Purchase of
Slide 13: Explanatory Notes to Cash Flows
Explanatory Notes to Consolidated Statement of Cash Flows (a) Net cash used in operating activities After taking into account the loss for current year, the lower net cash used in operating activities in 2Q 2013 and 1H 2013 was mainly due to repayment of loans, advances, hire purchase and leasing re
Slide 14: Statements of Changes in Equity
1(d)(i) Statements of Changes in Equity Attributable to owners of the Company Fair Non- Share Capital value Translation Accumulated controlling Total capital reserve reserve reserve profits Total interests equity Group S$’000 S$’000 S$’000 S$’000 S$’000 S$’000 S$’000 S$’000 2012 At 1 January 2012 88
Slide 15: Changes in Equity and Share Capital
1(d)(i) Statements of Changes in Equity (cont’d) Share Fair value Accumulated Total capital reserve profits equity Company S$’000 S$’000 S$’000 S$’000 2012 At 1 January 2012 88,032 (20) 22,511 110,523 Total comprehensive income for 1st quarter Profit for 1st quarter - - 2,774 2,774 Other comprehensi
Slide 16: Treasury Shares, Audit and Accounting Policies
1(d)(iv) Sales, Transfers, Disposal, Cancellation and/or use of Treasury Shares Not applicable. 2 Audit The figures have not been audited or reviewed by the Company’s auditors. 3 Auditors’ Report Not applicable. 4 Accounting Policies Except as disclosed in paragraph 5, the Group has applied the same
Slide 17: Review of Group Performance
investment income and higher net claims incurred, Group’s operating profit before allowances declined 36% to $2.5 million. The Group’s performance was impacted by provisions for loan losses and for claims reserve, in particular, associated with the business failure of a client. As a result, the Grou
Slide 18: Prospects
8 Prospects The Group expects business volume to continue to grow in 2013, which will help to cushion the impact of the loss in the first half of 2013. Our Thailand subsidiary achieved a record high factoring volume and profitability in the first half of 2013. Despite the economic slowdown, we expec
Slide 19: Interested Person Transactions Mandate
11 Interested Person Transactions Mandate There is no general mandate obtained from shareholders on Interested Person Transactions. By Order of the Board Chionh Yi Chian Company Secretary 7 August 2013 18
Slide 20: Confirmation by the Board
© IFS Capital Limited (Registration no: 198700827C) Confirmation By The Board Pursuant to Rule 705(4) of the Listing Manual On behaif of the Board of Directors of IFS Capital Limited (“the Company”), we, the undersigned, hereby confirm to the best of our knowledge that nothing has come to the attent
Slide 21: Half Year 2013 Unaudited Results Presentation
IFS Capital Limited IFS Capital Limited Half Year 2013 Unaudited Results Presentation 12 August 2013 1
Slide 22: Contents and Disclaimer
IFS Capital Limited Contents Slide 1. Highlights 3–4 2. (a) Group Income Statement 5 (b) Group Statement of Comprehensive Income 6 (c) Group Operating Expenses 7 3. Key Financial Ratios 8 4. Group Performance Review 9 - 10 5. Results of Subsidiaries - Regional Operations 11 - 12 - ECICS 13 - 14 6. P
Slide 23: Highlights
IFS Capital Limited Highlights Higher net interest income, net earned premium revenue and fee and commission income driven by higher factoring, bonds and guarantee insurance business volumes. Earnings in Singapore (excluding investment income) went up by 10% attributable mainly to net interest i
Slide 24: Highlights (cont'd)
IFS Capital Limited Highlights (cont’d) Higher provisions for loan losses and for claims reserve resulted in net loss of $2.7 million. Net loss attributable to shareholders after non-controlling interest (“NCI”) at $3.5 million. EPS (cents) : 2.3 (loss) (1H 2012: 2.2) NAV per Share (cents) : 8
Slide 25: Group Income Statement
IFS Capital Limited Group Income Statement 1H 1H +/(-) (S$’000) 2013 2012 % Net Interest Income 10,699 9,712 10.2 Net Earned Premium Revenue * 1,143 967 18.2 Non-Interest Income 5,972 6,555 (8.9) Total Income 17,814 17,234 3.4 Operating Expenses (10,142) (10,679) (5.0) Operating Profit before Net Cl
Slide 26: Group Statement of Comprehensive Income
IFS Capital Limited Group Statement of Comprehensive Income 1H 1H +/(-) (S$’000) 2013 2012 % (Loss)/Profit for the period (2,749) 3,923 NM Other comprehensive income/(loss) Net change in fair value of available-for-sale (129) 86 NM financial assets Net change in fair value of available-for-sale (150
Slide 27: Group Operating Expenses
IFS Capital Limited Group Operating Expenses 1H 1H +/(-) (S$’000) % % 2013 2012 % Commission 281 2.8 104 1.0 170.2 Business Development 375 3.7 391 3.7 (4.1) Staff Costs 6,042 59.6 6,466 60.5 (6.6) Depreciation & Amortisation 759 7.4 1,049 9.8 (27.6) General Administration 2,685 26.5 2,669 25.0 0.6
Slide 28: Key Financial Ratios
IFS Capital Limited 1H 1H Key Financial Ratios 2013 2012 +/(-)% Return on Ave Equity – After Tax (%) (2.6) 2.5 NM Earnings per Share (cts) (2.3) 2.2 NM Net Asset Value per Share (cts) 88.4 88.8 (0.5) Leverage (times) 2.23 2.15 3.7 Gross Gearing (times) 1.93 1.82 6.0 8
Slide 29: Group Performance Review – 1H 2013 vs 1H 2012
IFS Capital Limited Group Performance Review – 1H 2013 vs 1H 2012 Total operating income rose 3% to $17.8 million underpinned by growth in net interest income, net earned premium revenue as well as fee and commission income on higher factoring and insurance business volumes. Investment income dr
Slide 30: Group Performance Review (cont'd)
IFS Capital Limited Group Performance Review – 1H 2013 vs 1H 2012 (cont’d) Group loan assets including factoring receivables were $377 million as at 30 June 2013, an increase of 5% over the bases of $359 million as at 30 June 2012 and 31 December 2012. Results of Singapore operations including E
Slide 31: Regional Operations – Indonesia, Malaysia & Thailand
IFS Capital Limited Regional Operations – Indonesia, Malaysia & Thailand 1H 1H +/(-) (S$’000) 2013 2012 % Net Interest Income 5,942 5,088 16.8 Non-Interest Income 3,042 2,799 8.7 Operating Expenses (4,119) (3,966) 3.9 Operating Profit before Allowances 4,865 3,921 24.1 Allowances (536) (513) 4.5 Pro
Slide 32: Regional Operations (cont'd)
IFS Capital Limited Regional Operations (cont’d) - Indonesia, Malaysia & Thailand All overseas subsidiaries remained profitable. Contributed total net profit after tax and after NCI - $2.6 million, up 44% from $1.8 million for 1H 2012. Higher profit due to higher interest income and fees and com
Slide 33: ECICS Limited
IFS Capital Limited ECICS Limited 1H 1H (S$’000) +/(-) % 2013 2012 Gross Written Premiums 5,530 4,361 26.8 Net Earned Premium Revenue 1,169 1,009 15.9 Fee and Investment Income 1,806 1,872 (3.5) Claims Incurred (1,517) (171) NM Operating Expenses (2,145) (2,005) 7.0 Operating (Loss)/Profit before Al
Slide 34: ECICS Limited (cont'd)
IFS Capital Limited ECICS Limited (cont’d) Gross written premiums up 27% to $5.5 million from increased credit insurance and bonds and guarantee businesses. After accounting for reinsurers’ share of change in provision for unexpired risks, net earned premium revenue increased 16% to $1.2 million
Slide 35: Prospects
IFS Capital Limited Prospects Business volumes continue to grow in 2013. Financing business: o Thailand achieved record high factoring volume and profitability for 1H 2013. Despite economic slowdown, we expect contribution to remain positive. o Business volumes in Malaysia picked up substantiall
Slide 36: Prospects (cont'd)
IFS Capital Limited Prospects (cont’d) With continuing uncertain environment, the Group remains disciplined in pursuing business opportunities and continue to prudently manage its resources and risks. Expansion into new markets to increase diversification of its earnings is still actively being pu
Slide 37: Group Net Gearing
IFS Capital Limited Group Net Gearing Net Gearing (Net of cash held in IFS excluding ECICS) • Sharp drop in gearing 3.00 since 2005. Global • Decrease in gearing financial despite consolidation of 2.50 crisis - drop Thailand. in Gearing • Recent increase in 2.00 Reversal gearing reflective of increa
Slide 38: The End – Thank You
IFS Capital Limited THE END THANK YOU 18