Ifast Corporation Ltd · SGX:AIY
Ifast — Q3 2020 Earnings Presentation
59 slides from Ifast's earnings presentation, Oct 23, 2020
Slide 1: 3Q2020 & 9M2020 Results Presentation
23 OCTOBER 2020 3Q2020 & 9M2020 Results Presentation iFAST Corporation Ltd.
Slide 2: Disclaimer
Disclaimer This presentation should be read as an overview of iFAST Corporation Ltd.’s (“iFAST Corp” or the “Company”, and together with its subsidiaries, the “Group”) current business activities and operating environment. This presentation should not be solely relied upon by current and potential i
Slide 3: Table of Contents
Table of Contents o Key Summary Pg. 4 o 3Q2020 (Jul–Sep 2020) & 9M2020 (Jan–Sep 2020) Results Pg. 8 Section I o Financial Indicators Financial Results o Interim Dividend o AUA Breakdown: Markets & Products Pg. 22 o Recurring and Non-recurring Net Revenue Section II o Performance by Geographical and
Slide 4: Key Summary
Key Summary • The Group reported a new record quarterly net profit of S$6.16 million in 3Q2020, an increase of 150.6% compared to 3Q2019. This was achieved on the back of a 35.7% YoY increase in net revenue and a 33.3% YoY increase in gross revenue. For the first nine months of 2020 (“9M2020”), net
Slide 5: Key Summary
Key Summary • iFAST Corp believes that the robust growth seen by the Group this year has resulted from its past investments in building up a strong integrated digital wealth management platform. iFAST Corp will continue to work hard on various initiatives in all existing markets that the Group opera
Slide 6: Group AUA grew 25.9% YTD and 33.3% YoY to S$12.59 billion
Group AUA grew 25.9% YTD and 33.3% YoY to S$12.59 billion as at 30 September 2020 S$ million AUA (as at 30 Sep 2020): S$12.59 billion1 $13,000 $12,000 $11,000 $10,000 $9,000 $8,000 $7,000 $6,000 $5,000 $4,000 $3,000 $2,000 $1,000 $- Sep-00 Sep-02 Sep-04 Sep-06 Sep-08 Sep-10 Sep-12 Sep-14 Sep-16 Sep-
Slide 7: Net inflows & Subscription ex-switching
Net inflows & Subscription ex-switching S$ million Net inflows S$ million Subscription ex-switching $2,500 $8,000 $7,739 $2,313 $7,000 $2,000 $6,000 $5,000 $1,500 $4,328 $4,000 $3,605 $942 $976 $3,099 $1,000 $3,000 $786 $2,453 $707 $2,000 $1,574 $500 $235 $1,000 $- $- 2016 2017 2018 2019 9M199M20 20
Slide 8: Financial Results
SECTION I Financial Results iFAST Corporation Ltd. 8
Slide 9: Financial Results for Group (3Q2020 vs 3Q2019)
Financial Results for Group (3Q2020 vs 3Q2019) S$ (Million) 3Q2019 3Q2020 YoY change (%) Revenue 33.77 45.00 +33.3 Net revenue 16.85 22.87 +35.7 Other income 0.44 1.27 +188.4 Operating Expenses 14.47 16.70 +15.4 Net finance (costs) / income 0.03 -0.06 NM Share of results of associates, net of tax 0.
Slide 10: Financial Results for Group (9M2020 vs 9M2019)
Financial Results for Group (9M2020 vs 9M2019) S$ (Million) 9M2019 9M2020 YoY change (%) Revenue 91.59 122.03 +33.2 Net revenue 48.24 61.53 +27.5 Other income 1.52 3.65 +139.5 Operating Expenses 41.83 47.68 +14.0 Net finance (costs) / income -0.11 0.08 NM Share of results of associates, net of tax -
Slide 11: Results Overview for Group (including China operation)
Results Overview for Group (including China operation) S$ (Million) FY2016 FY20171 FY2018 FY2019 9M2020 Revenue 80.60 101.17 121.24 125.41 122.03 Net revenue 40.69 49.45 59.62 65.20 61.53 Other income 1.88 1.08 1.16 2.04 3.65 Operating expenses 37.16 42.19 49.78 56.06 47.68 Net finance income/(costs
Slide 12: Results Overview for Group (excluding China operation)
Results Overview for Group (excluding China operation) S$ (Million) FY2016 FY20171 FY2018 FY2019 9M2020 Revenue 79.89 100.65 120.50 124.84 120.90 Net revenue 40.46 49.01 58.87 64.64 60.42 Other income 1.88 1.10 1.16 2.04 3.64 Operating expenses 33.13 37.31 44.12 50.43 42.85 Net finance income/(costs
Slide 13: PBT margin for Group (based on net revenue)
PBT margin for Group (based on net revenue) (including China operation) (excluding China operation) 40.0% 40.0% 35.0% 35.0% 35.0% 30.0% 28.3% 30.0% 29.2% 26.8% 24.3% 24.9% 25.0% 25.0% 20.7% 20.0% 20.0% 17.7% 17.0% 15.0% 15.0% 15.0% 10.0% 10.0% 5.0% 5.0% 0.0% 0.0% 2016 2017 2018 2019 9M2020 2016 2017
Slide 14: Financial Indicators
Financial Indicators S$ (Million) FY2016 FY2017 FY2018 FY2019 9M2020 EBITA 7.59 12.96 16.44 17.49 22.91 Net Cash Position1 54.59 55.91 48.06 40.15 48.28 Operating Cash Flows 5.63 13.22 17.62 19.38 30.82 Operating Cash Flows (excluding China 8.79 16.92 21.62 23.54 33.56 Operation) Capital Expenditure
Slide 15: Net Cash Position
Net Cash Position As at 30 Sep 2020 (S$ million) Cash and cash equivalents 32.51 Other investments¹ 18.13 Total cash and other investments 50.64 Less: Bank loans 2.36 Net Cash Position 48.28 (total cash and other investments net off bank loans) Gross Debt-to-Equity Ratio 2.35% Net Debt-to-Equity Rat
Slide 16: Group Operating Cash Flows
Group Operating Cash Flows S$ million 40 33.56 35 30.82 30 23.54 25 21.62 19.38 20 16.92 17.62 15 13.22 8.79 10 5.63 5 0 2016 2017 2018 2019 9M2020 Operating Cash Flows (excluding China) Operating Cash Flows (including China) iFAST Corporation Ltd. 16
Slide 17: Capital Expenditure
Capital Expenditure S$ thousand 14,000 11,901 12,000 10,727 10,000 7,466 8,000 7,068 6,615 6,000 5,454 4,000 2,339 1,714 1,554 2,000 214 - 2011 2012 2013 2014 2015 2016 2017 2018 2019 9M2020 Note: 1. The Group’s estimated capital expenditure for 2020 was S$10.81 million, but does not take into consi
Slide 18: Number of issued shares
Number of issued shares As at 31 Dec 2019 As at 30 Sep 2020 Total number of issued shares (excluding treasury shares and 268,732,479 271,853,335 subsidiary holdings) iFAST Corporation Ltd. 18
Slide 19: Our Consolidated Financial Position
Our Consolidated Financial Position As at 31 Dec 19 As at 30 Sep 20 S$’000 S$’000 NON-CURRENT ASSETS Plant and Equipment 3,689 3,386 Right-of-use Assets 14,390 20,534 Intangible Assets and Goodwill 22,212 23,379 Associates 5,375 6,342 Other Investments 5,329 5,293 Deferred Tax Assets 1,139 1,036 Pre
Slide 20: Our Consolidated Financial Position
Our Consolidated Financial Position As at 31 Dec 19 As at 30 Sep 20 S$’000 S$’000 EQUITY Share Capital 66,180 66,711 Other Reserves 23,877 33,704 EQUITY ATTRIBUTABLE TO OWNERS OF THE COMPANY 90,057 100,415 Non-Controlling Interests (421) (599) TOTAL EQUITY 89,636 99,856 NON-CURRENT LIABILITIES Defer
Slide 21: Third Interim Dividend for FY2020
Third Interim Dividend for FY2020 Third Interim Dividend for FY2020 - Schedule Dividend per share 0.80 cents per ordinary share Ex-dividend date 2 Nov 2020 Record date and time 3 Nov 2020 (5.00 pm) Payment date 13 Nov 2020 • For the third interim dividend for 3Q2020, the Directors declared a dividen
Slide 22: Our Performance Trends
SECTION II Our Performance Trends iFAST Corporation Ltd. 22
Slide 23: AUA Breakdown: Markets & Products
AUA Breakdown: Markets & Products (as at 30 September 2020) AUA Breakdown By Markets Breakdown by Products 3.3% 5.5% 9.3% 11.1% 6.8% 20.0% 67.4% 76.6% Singapore Hong Kong Unit Trusts Bonds Malaysia Others (China & India) Stocks & ETFs Cash Account iFAST Corporation Ltd. 23
Slide 24: Net revenue breakdown between recurring and non-recurring sources
Net revenue breakdown between recurring and non-recurring sources Average contribution from recurring net revenue as opposed to non-recurring net revenue in the period from 2019 to 9M2020 was 76.0% S$ million 70 60 12.3 11.3 18.0 50 8.5 40 6.9 6.0 7.2 30 6.0 52.9 4.0 48.3 4.8 43.6 20 18.1 4.6 40.9 1
Slide 25: Net revenue as a ratio of average AUA
Net revenue as a ratio of average AUA 0.800% 0.700% 0.105% 0.126% 0.139% 0.138% 0.224% 0.600% 0.500% 0.400% 0.300% 0.609% 0.606% 0.596% 0.594% 0.543% 0.200% 0.100% 0.000% 2016 2017 2018 2019 9M2020 Recurring net revenue / AUA Non-recurring net revenue / AUA iFAST Corporation Ltd. 25
Slide 26: Recurring and Non-Recurring Net Revenue
Recurring and Non-Recurring Net Revenue S$ (Million) FY2016 FY2017 FY2018 FY2019 9M2020 Recurring net revenue 34.71 40.95 48.32 52.94 43.56 Non-recurring net 5.98 8.50 11.30 12.26 17.97 revenue Total net revenue 40.69 49.45 59.62 65.20 61.53 YoY Change (%) FY2016 FY2017 FY2018 FY2019 9M2020 Recurrin
Slide 27: Net Revenue – Geographical Segment
Net Revenue – Geographical Segment S$ (Million) FY2016 FY2017 FY2018 FY2019 9M2020 Singapore 29.54 34.77 39.30 41.95 40.10 Hong Kong 8.66 10.78 14.26 16.71 14.06 Malaysia 2.26 3.47 5.32 5.97 6.26 China 0.23 0.43 0.75 0.57 1.11 Group 40.69 49.45 59.62 65.20 61.53 YoY Change (%) FY2016 FY2017 FY2018 F
Slide 28: Net Revenue – B2B Business Segment
Net Revenue – B2B Business Segment B2B Net Revenue FY2016 FY2017 FY2018 FY2019 9M2020 (S$ Million) Recurring net revenue 24.49 28.85 33.88 37.12 30.56 Non-recurring net revenue 3.86 5.15 7.22 7.19 8.05 Total B2B net revenue 28.35 34.00 41.10 44.31 38.61 YoY Change (%) FY2016 FY2017 FY2018 FY2019 9M2
Slide 29: Net Revenue – B2C Business Segment
Net Revenue – B2C Business Segment B2C Net Revenue FY2016 FY2017 FY2018 FY2019 9M2020 (S$ Million) Recurring net revenue 10.22 12.10 14.44 15.81 13.00 Non-recurring net revenue 2.12 3.35 4.08 5.08 9.92 Total B2C net revenue 12.34 15.45 18.52 20.89 22.92 YoY Change (%) FY2016 FY2017 FY2018 FY2019 9M2
Slide 30: Profit/Loss – Geographical Segment
Profit/Loss – Geographical Segment YoY YoY Profit/Loss Change Change (S$ Million) 3Q2019 3Q2020 (%) 9M2019 9M2020 (%) Singapore 2.52 5.86 +132.3 7.53 14.41 +91.4 Hong Kong 1.30 1.62 +24.7 2.82 4.06 +44.1 Malaysia 0.30 1.23 +308.7 1.23 2.81 +129.1 Other1 0.09 -0.07 NM (0.16) (0.14) -11.3 Profit befor
Slide 31: Profit/Loss – Geographical Segment
Profit/Loss – Geographical Segment Profit/Loss (S$ Million) FY2016 FY20172 FY2018 FY2019 9M2020 Singapore 9.07 10.62 11.86 9.96 14.41 Hong Kong 0.53 1.77 3.42 4.42 4.06 Malaysia 0.38 1.07 1.37 1.76 2.81 Other1 (0.16) (0.33) 0.52 (0.05) (0.14) Profit before tax (excluding China operation) 9.82 13.13
Slide 32: Transaction Volume Of Bondsupermart's Affiliated Brokers From Inception
Transaction Volume Of Bondsupermart’s Affiliated Brokers From Inception S$ million 700.00 612.30 600.00 547.08 516.78 500.00 446.32 400.00 353.47 300.00 249.72 229.80 200.00 184.09 100.00 13.38 29.92 0.00 2012 2013 2014 2015 2016 2017 2018 2019 9M19 9M20 iFAST Corporation Ltd. 32
Slide 33: Widening Product & Service Offerings in the Region
Widening Product & Service Offerings in the Region • As a Fintech wealth management platform, iFAST Corp is constantly looking for new business opportunities to improve the range and depth of its products and services. • New product and service offerings announced by the Group in 3Q2020 include: 1.
Slide 34: Update on Digital Bank Licence Application in Singapore
Update on Digital Bank Licence Application in Singapore • Application for the digital bank licence in Singapore is still in progress. According to the Monetary Authority of Singapore (“MAS”), the timeline for the award of the digital bank licences would be by the end of this year. MAS would be issui
Slide 35: Hong Kong eMPF Platform Project
Hong Kong eMPF Platform Project • In the Group’s response to the queries raised by SGX on 7 August 2020, the Group notes that there were several media reports indicating that iFAST Corp is working with Hong Kong-listed PCCW in their rumoured tender for the project to digitise the existing Mandatory
Slide 36: Progress of Individual Markets: Singapore
Progress of Individual Markets SINGAPORE iFAST Singapore Total Sales ex-switching S$ million 1,400 1,300 1,200 1,100 1,000 900 800 700 600 500 400 300 200 100 - B2B B2C iFAST Corporation Ltd.
Slide 37: Progress of Individual Markets: Singapore
Progress of Individual Markets SINGAPORE • Net revenue for the Singapore operation increased by 40.8% YoY to S$15.00 million in 3Q2020, and rose by 28.8% YoY to S$40.10 million in 9M2020. • The growth in net revenue was due to the robust growth rates in AUA, sales and net inflows for FSMOne.com, its
Slide 38: Progress of Individual Markets: Singapore
Progress of Individual Markets SINGAPORE • FSMOne.com continued to see a surge in investment activities from DIY investors in 3Q2020. The contribution to net revenue from the stockbroking business grew significantly, as investors continued to trade actively in the stocks and ETFs listed on the US, S
Slide 39: Progress of Individual Markets: Hong Kong
Progress of Individual Markets HONG KONG • Net revenue for the Hong Kong operation increased by 7.3% YoY to S$4.89 million in 3Q2020, and rose by 15.5% YoY to S$14.06 million in 9M2020. • The AUA of the Hong Kong operation grew by 13.9% YoY, 7.0% QoQ and 10.1% YTD to S$2.52 billion as at 30 Septembe
Slide 40: Progress of Individual Markets: Hong Kong
Progress of Individual Markets HONG KONG • The stocks & ETFs turnover continued to be strong in 3Q2020 for the Hong Kong operation. In 3Q2020, the stocks & ETFs turnover for the B2C division were slightly lower than the record high level seen in 2Q2020, while the B2B division observed a 39% QoQ grow
Slide 41: Progress of Individual Markets: Malaysia
Progress of Individual Markets MALAYSIA • Net revenue for the Malaysia operation increased by 59.6% YoY to S$2.40 million, and rose by 37.9% YoY to S$6.26 million in 9M2020. • The AUA of the Malaysia operation grew 44.1% YoY to S$1.17 billion as at 30 September 2020. As investors sentiments turn pos
Slide 42: Progress of Individual Markets: Malaysia
Progress of Individual Markets MALAYSIA • The B2B business recovered significantly in 3Q2020 as advisers picked up momentum amidst the loosening of movement control restrictions. A new record quarterly gross sales for unit trusts was achieved. • Although wealth advisers are now able to meet clients
Slide 43: Progress of Individual Markets: China
Progress of Individual Markets CHINA • Net revenue for the China operation grew 306.3% YoY to S$0.58 million in 3Q2020, and rose by 183.6% to S$1.11 million in 9M2020. • The AUA of the China operation grew 47.2% QoQ and 125.4% YTD to approximately RMB 1.18 billion (equivalent to S$238 million) as at
Slide 44: Progress of Individual Markets: China
Progress of Individual Markets CHINA • The B2B wealth advisory division achieved a record high sales in 3Q2020. The onboarding of a couple of popular private funds boasted the sales volume and also provide alternative investment choices to qualified investors. • iFAST Investment Management China Ltd
Slide 45: Progress of Individual Markets: India
Progress of Individual Markets INDIA • As at 30 September 2020, iFAST Corp holds an effective 39.25% share in iFAST Financial India Pvt Ltd, the key business of the Group’s India business, which engages in the distribution of investment products including unit trust in India. • India’s AUA fell by 1
Slide 46: Appendices
SECTION III Appendices iFAST Corporation Ltd. 46
Slide 47: Business Overview
Business Overview • iFAST Corporation Ltd. is a wealth management fintech platform with assets under administration (AUA) of S$12.59 billion as at 30 September 2020 (stock code: AIY). • Main business divisions: o Business-to-Consumer (B2C) platform, Fundsupermart (including the new FSMOne multi-prod
Slide 48: Milestones
Milestones Launch of Fundsupermart.com (B2C) in Hong Kong • Distribution of bonds and ETFs in Launch of “FSM Mobile” Singapore iPhone application. The • Launch of online discretionary portfolio Android version of the “FSM Launch of management service (DPMS) in Hong Kong Mobile” was launched in Funds
Slide 49: Milestones (cont'd)
Milestones (cont’d) • iFAST Singapore clinched “Fastest Growing SGX-ST • Launch of HKEX stockbroking services on FSM Hong Kong Member” Award at SGX Awards Night 2019 • Launch of bonds on FSM Malaysia and online DPMS in • iFAST Malaysia launched retail bonds under the Securities Malaysia Commission M
Slide 50: iFAST Fintech Ecosystem
iFAST Fintech Ecosystem (as at 30 Sep 2020) Connecting All to Help Investors Invest Globally and Profitably Fund Houses Fundsupermart.com / FSMOne.com / Holds relevant B2C Bondsupermart licences in 5 markets Banks/ Over Bond Dealers 500,000 customer FA Companies accounts in 5 markets Over 450 compan
Slide 51: The iFAST Fintech Ecosystem
The iFAST Fintech Ecosystem • Products and services: ─ Unit trusts (over 7,700 funds from over 270 fund houses) ─ Bonds (over 1,300 direct bonds) ─ Stocks & ETFs – in 3 markets (Singapore, Hong Kong and US) ─ Discretionary portfolio management services • Over 450 financial institutions and other cor
Slide 52: The Revenue Drivers
The Revenue Drivers • The iFAST business model predominantly involves growing the size of our assets under administration (AUA). Higher AUA will generally lead to higher revenues. • Recurring income accounts for more than two thirds of our net revenue • Sources of Non-Recurring Net Revenue ─ Transac
Slide 53: Licences Held and Products and Services Available
Licences Held and Products and Services Available (as at 30 September 2020) LI CENCES HELD: • Fund Distributor Qualification [CSRC] • Associate Member of AMAC • Member of SAMC • Registered Private Fund Manager [AMAC] PR ODUCTS AVAILABLE: UT LI CENCES HELD: • Registered Investment Adviser with SEBI L
Slide 54: Our Value Proposition
Our Value Proposition PRODUCT B2B B2C PROVIDERS CUSTOMERS DIY INVESTORS • One platform, multiple • One platform, multiple investment • One platform, multiple B2C and B2B customers products investment products • No need to enter into • Adoption of recurring revenue business • Competitive and transpar
Slide 55: Net revenue and operating expenses as a ratio of average AUA (including China)
Net revenue and operating expenses as a ratio of average AUA for Group (including China operation) 0.800% 0.767% 0.732% 0.735% 0.731% 0.714% 0.700% 0.652% 0.625% 0.629% 0.609% 0.606% 0.614% 0.594% 0.594% 0.600% 0.596% 0.543% 0.500% 0.400% 0.300% 0.200% 0.100% 0.000% 2016 2017 2018 2019 9M2020 Net re
Slide 56: Net revenue and operating expenses as a ratio of average AUA (excluding China)
Net revenue and operating expenses as a ratio of average AUA for Group (excluding China operation) 0.800% 0.763% 0.729% 0.736% 0.733% 0.711% 0.700% 0.607% 0.582% 0.606% 0.599% 0.596% 0.600% 0.556% 0.551% 0.572% 0.545% 0.541% 0.500% 0.400% 0.300% 0.200% 0.100% 0.000% 2016 2017 2018 2019 9M2020 Net re
Slide 57: Fees Illustration
Fees Illustration FUND HOUSES TRAILER FEE PLATFORM FEE PLATFORM FEE B2B CUSTOMERS UPFRONT FEE B2C CUSTOMERS UPFRONT FEE WRAP FEE FX CONVERSION FEES B2B FINANCIAL ADVISORY COMPANIES FINTECH SOLUTIONS OTHER SERVICE FEES FACILITIES iFAST Corporation Ltd. 57
Slide 58: 3Q2020: Activities & Achievements
3Q2020: Activities & Achievements (L-R): Singapore: FSMOne.com held its virtual 2020 Mid-Year Review and FSM Choice Award 2020 in July; Bondsupermart released the 2H2020 Recommended Bonds Report in July. (L-R) Singapore: The FSM ETFestival 2020, a 4-day virtual ETF event held in August, attracted a
Slide 59: THANK YOU!
TO HELP INVESTORS AROUND THE WORLD INVEST GLOBALLY AND PROFITABLY THANK YOU! For more information, please visit: www.ifastcorp.com iFAST Corporation Ltd.