Slide 1: 3Q2019 & 9M2019 Results Presentation
31 October 2019 3Q2019 & 9M2019 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 Key Summary Pg. 4 3Q2019 (Jul – Sep 2019) and 9M2019 (Jul – Sep 2019) Results Pg. 7 Section I Financial Indicators Financial Results Financial Position Third Interim Dividend Section II The iFAST Fintech Ecosystem Pg. 24 Strengthening Our The Revenue Drivers Fintech Eco
Slide 4: Key Summary
Key Summary • Despite volatile financial market conditions and generally jittery investor sentiments in Asia in 9M2019, the Group’s Assets under Administration (AUA) grew 17.3% year- to-date, to a record high of S$9.44 billion as at 30 September 2019. • Record AUAs have been achieved in Singapore, H
Slide 5: Key Summary
Key Summary • While the Group is expected to continue to improve on upgrading its platform capabilities further, including laying the initial foundations to be a digital/virtual bank, the Group expects that over the next 12 months, the pace at which the Group’s operating expenses will be increasing
Slide 6: Group AUA grew 17.3% YTD to a record high of S$9.44 billion
Group AUA grew 17.3% YTD to a record high of S$9.44 billion S$ million AUA (as at 30 Sep 2019): S$9.44 billion1 $10,000 $9,000 $8,000 $7,000 $6,000 $5,000 $4,000 $3,000 $2,000 $1,000 $- Mar-00 Sep-00 Mar-01 Sep-01 Mar-02 Sep-02 Mar-03 Sep-03 Mar-04 Sep-04 Mar-05 Sep-05 Mar-06 Sep-06 Mar-07 Sep-07 Ma
Slide 7: Financial Results
SECTION I Financial Results iFAST Corporation Ltd. 7
Slide 8: Presentation of Group's Results
Presentation of Group’s Results Presentation of Group’s results (including and excluding China) • In view that our China operation is a relatively new market for the Group, we are presenting our presentation results based on the results of: 1) Group excluding China operation; and 2) Group including
Slide 9: Financial Results for Group (excluding China operation) (3Q2019 vs 3Q2018)
Financial Results for Group (excluding China operation) (3Q2019 vs 3Q2018) S$ (Million) 3Q2018 3Q2019 YoY change (%) Revenue 31.23 33.62 +7.7 Net revenue 15.32 16.71 +9.1 Other income 0.34 0.44 +28.8 Expenses 11.35 13.06 +15.0 Net finance income 0.22 0.05 -77.7 Share of results of associates, net of
Slide 10: Financial Results for Group (including China operation) (3Q2019 vs 3Q2018)
Financial Results for Group (including China operation) (3Q2019 vs 3Q2018) S$ (Million) 3Q2018 3Q2019 YoY change (%) Revenue 31.38 33.77 +7.6 Net revenue 15.47 16.85 +9.0 Other income 0.34 0.44 +29.1 Expenses 12.86 14.47 +12.5 Net finance income 0.23 0.03 -88.4 Share of results of associates, net of
Slide 11: Financial Results for Group (excluding China operation) (9M2019 vs 9M2018)
Financial Results for Group (excluding China operation) (9M2019 vs 9M2018) S$ (Million) 9M2018 9M2019 YoY change (%) Revenue 92.67 91.20 -1.6 Net revenue 44.21 47.85 +8.2 Other income 0.90 1.52 +69.3 Expenses 32.44 37.64 +16.0 Net finance income/(cost) 0.68 -0.10 NM Share of results of associates, n
Slide 12: Financial Results for Group (including China operation) (9M2019 vs 9M2018)
Financial Results for Group (including China operation) (9M2019 vs 9M2018) S$ (Million) 9M2018 9M2019 YoY change (%) Revenue 93.26 91.59 -1.8 Net revenue 44.80 48.24 +7.7 Other income 0.90 1.52 +69.4 Expenses 36.76 41.83 +13.8 Net finance income/(cost) 0.71 -0.11 NM Share of results of associates, n
Slide 13: Results Overview for Group (excluding China operation)
Results Overview for Group (excluding China operation) S$ (Million) FY2015 FY2016 FY20171 FY2018 9M2019 Revenue 85.34 79.89 100.65 120.50 91.20 Net revenue 41.53 40.46 49.01 58.87 47.85 Other income 1.53 1.88 1.10 1.16 1.52 Operating expenses 30.06 33.13 37.31 44.12 37.64 Net finance income/(cost) 0
Slide 14: Results Overview for Group (including China operation)
Results Overview for Group (including China operation) S$ (Million) FY2015 FY2016 FY20171 FY2018 9M2019 Revenue 85.34 80.60 101.17 121.24 91.59 Net revenue 41.53 40.69 49.45 59.62 48.24 Other income 1.53 1.88 1.08 1.16 1.52 Operating expenses 31.08 37.16 42.19 49.78 41.83 Net finance income/(cost) 0
Slide 15: PBT margin for Group (based on net revenue)
PBT margin for Group (based on net revenue) (excluding China operation) (including China operation) 35.0% 33.1% 35.0% 30.7% 30.0% 29.2% 30.0% 26.8% 25.0% 24.3% 23.9% 25.0% 20.7% 20.0% 20.0% 17.7% 15.9% 15.0% 15.0% 15.0% 10.0% 10.0% 5.0% 5.0% 0.0% 0.0% 2015 2016 2017 2018 9M2019 2015 2016 2017 2018 9
Slide 16: Financial Indicators
Financial Indicators S$ (Million) FY2015 FY2016 FY2017 FY2018 9M2019 Net Cash Position1 61.48 54.59 55.91 48.06 41.37 Operating Cash Flows 14.18 5.63 13.22 17.62 16.81 Operating Cash Flows (excluding China 15.43 8.79 16.92 21.62 20.13 Operation) Capital Expenditure2 5.45 6.61 7.47 10.73 8.19 Net Cur
Slide 17: Net Cash Position
Net Cash Position As at 30 Sep 2019 (S$ million) Cash and cash equivalents 22.56 Other investments¹ 29.18 Total cash and other investments 51.74 Less: Bank loans (10.37) Net Cash Position 41.37 (total cash and other investments net off bank loans) Gross Debt-to-Equity Ratio 11.68% Net Debt-to-Equity
Slide 18: Group Operating Cash Flows
Group Operating Cash Flows 25 21.62 20.13 20 17.62 Operating Cashflow (S$ Million) 16.92 16.81 15.43 15 14.18 13.22 10 8.79 5.63 5 0 2015 2016 2017 2018 9M2019 Operating Cash Flows (excluding China) Operating Cash Flows (including China) iFAST Corporation Ltd. 18
Slide 19: Capital Expenditure
Capital Expenditure 12,000 11,100 11,000 10,727 10,000 9,000 8,000 7,466 7,000 6,615 S$ Thousand 6,000 5,454 5,000 4,000 3,000 2,339 2,000 1,714 1,554 1,000 214 0 2011 2012 2013 2014 2015 2016 2017 2018 2019F iFAST Corporation Ltd. 19
Slide 20: Number of issued shares
Number of issued shares As at 31 Dec 2018 As at 30 Sep 2019 Total number of issued shares (excluding treasury shares and 266,776,679 268,652,979 subsidiary holdings) iFAST Corporation Ltd. 20
Slide 21: Our Consolidated Financial Position as at Sep 2019
Our Consolidated Financial Position as at 30 Sep2019 S$’000 NON-CURRENT ASSETS Plant and Equipment 3,920 Right-of-use Assets 16,094 Intangible Assets and Goodwill 20,295 Subsidiaries - Associates 4,941 Other Investments 5,249 Deferred Tax Assets 1,096 Prepayments & Others 319 TOTAL NON-CURRENT ASSET
Slide 22: Our Consolidated Financial Position as at Sep 2019 (cont'd)
Our Consolidated Financial Position as at 30 Sep 2019 (cont’d) S$’000 CURRENT LIABILITIES Uncompleted Contracts – Sellers 19,525 Trade & Other Payables 20,145 Bank Loans 10,367 Lease Liabilities 5,067 Current Tax Payables 1,279 TOTAL CURRENT LIABILITIES 56,383 NON-CURRENT LIABILITIES Deferred Tax Li
Slide 23: Third Interim Dividend for FY2019
Third Interim Dividend for FY2019 Third Interim Dividend for FY2019 - Schedule Dividend per share 0.75 cents per ordinary share Ex-dividend date 8 Nov 2019 Record date and time 11 Nov 2019 (5.00 pm) Payment date 22 Nov 2019 • For the third interim dividend for 3Q2019, the Directors declared a divide
Slide 24: Strengthening Our Fintech Ecosystem
SECTION II Strengthening Our Fintech Ecosystem iFAST Corporation Ltd. 24
Slide 25: iFAST Fintech Ecosystem
iFAST Fintech Ecosystem (as at 30 Sep 2019) 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 390,000 customer FA Companies accounts in 5 Markets Over 400 compan
Slide 26: The iFAST Fintech Ecosystem
The iFAST Fintech Ecosystem • Products and services: ─ Unit trusts (over 6,700 funds from over 260 fund houses) ─ Bonds (over 1,200 direct bonds) ─ Stocks & ETFs – in 3 markets (Singapore, Hong Kong and US) ─ Discretionary portfolio management services • Over 400 financial institutions and other cor
Slide 27: 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 approximately 80% of our net revenue • Sources of Non-Recurring Net Revenue ─ Transactio
Slide 28: 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 2015 to 9M2019 was 82.8% S$ million 70 60 11.3 50 8.5 9.0 40 6.9 6.0 7.2 30 6.0 4.0 48.3 4.8 20 18.1 4.6 40.9 39.2 12.3 34.6 34
Slide 29: Group AUA grew 17.3% YTD to a record high of S$9.44 billion
Group AUA grew 17.3% YTD to a record high of S$9.44 billion S$ million AUA (as at 30 Sep 2019): S$9.44 billion1 $10,000 $9,000 $8,000 $7,000 $6,000 $5,000 $4,000 $3,000 $2,000 $1,000 $- Mar-00 Sep-00 Mar-01 Sep-01 Mar-02 Sep-02 Mar-03 Sep-03 Mar-04 Sep-04 Mar-05 Sep-05 Mar-06 Sep-06 Mar-07 Sep-07 Ma
Slide 30: Net revenue as a ratio of average AUA
Net revenue as a ratio of average AUA 0.800% 0.700% 0.122% 0.105% 0.126% 0.139% 0.138% 0.600% 0.500% 0.400% 0.300% 0.615% 0.609% 0.606% 0.596% 0.600% 0.200% 0.100% 0.000% 2015 2016 2017 2018 9M2019 Recurring net revenue / AUA Non-recurring net revenue / AUA iFAST Corporation Ltd. 30
Slide 31: Pursuing A Digital Bank Licence in Singapore
Pursuing A Digital Bank Licence in Singapore • The Monetary Authority of Singapore (MAS) announced its plan to issue up to five digital bank licences to non-bank players in June 2019. • iFAST Corp sees this as an exciting development in the industry and will be pursuing the digital bank licence in S
Slide 32: Our Performance Trends
SECTION III Our Performance Trends iFAST Corporation Ltd. 32
Slide 33: AUA Breakdown: Markets & Products
AUA Breakdown: Markets & Products (as at 30 September 2019) AUA Breakdown By Markets AUA Breakdown by Products 2.9% 3.8% 8.6% 5.5% 7.7% 23.4% 65.1% 83.0% Singapore Hong Kong Unit Trusts Bonds Malaysia Others (China & India) Stocks & ETFs Cash Account iFAST Corporation Ltd. 33
Slide 34: Net sales & Subscription ex-switching
Net sales & Subscription ex-switching S$ million Net Sales S$ million Subscription ex-switching $1,000 $4,000 $942 $3,605 $900 $3,500 $786 $794 $800 $3,099 $707 $3,000 $2,888 $700 $2,453 $2,500 $600 $500 $2,000 $1,670 $396 $1,574 $400 $1,500 $300 $235 $1,000 $200 $500 $100 $- $- 2015 2016 2017 2018
Slide 35: Transaction Volume Of Bondsupermart's Affiliated Brokers From Inception
Transaction Volume Of Bondsupermart’s Affiliated Brokers From Inception S$ million 183.71 180.0 162.72 160.0 152.69 140.0 135.30 127.30 120.0 116.22 102.43 102.41 100.0 90.36 85.15 83.95 80.0 70.88 76.75 68.91 60.0 53.08 56.64 53.29 50.76 46.66 43.43 41.09 40.92 40.0 35.52 20.0 9.07 9.44 2.17 5.14 7
Slide 36: Recurring and Non-Recurring Net Revenue
Recurring and Non-Recurring Net Revenue S$ (Million) FY2015 FY2016 FY2017 FY2018 9M2019 Recurring net revenue 34.64 34.71 40.95 48.32 39.22 Non-recurring net revenue 6.89 5.98 8.50 11.30 9.02 Total net revenue 41.53 40.69 49.45 59.62 48.24 YoY Change (%) FY2015 FY2016 FY2017 FY2018 9M2019 Recurring
Slide 37: Net Revenue – Geographical Segment
Net Revenue – Geographical Segment S$ (Million) FY2015 FY2016 FY2017 FY2018 9M2019 Singapore 30.04 29.54 34.77 39.30 31.14 Hong Kong 9.55 8.66 10.78 14.26 12.17 Malaysia 1.94 2.26 3.47 5.32 4.54 China - 0.23 0.43 0.75 0.39 Group 41.53 40.69 49.45 59.62 48.24 YoY Change (%) FY2015 FY2016 FY2017 FY201
Slide 38: Net Revenue – B2B Business Segment
Net Revenue – B2B Business Segment B2B Net Revenue FY2015 FY2016 FY2017 FY2018 9M2019 (S$ Million) Recurring net revenue 24.50 24.49 28.85 33.88 27.50 Non-recurring net revenue 4.09 3.86 5.15 7.22 5.30 Total B2B net revenue 28.59 28.35 34.00 41.10 32.80 YoY Change (%) FY2015 FY2016 FY2017 FY2018 9M2
Slide 39: Net Revenue – B2C Business Segment
Net Revenue – B2C Business Segment B2C Net Revenue FY2015 FY2016 FY2017 FY2018 9M2019 (S$ Million) Recurring net revenue 10.15 10.22 12.10 14.44 11.72 Non-recurring net revenue 2.79 2.12 3.35 4.08 3.72 Total B2C net revenue 12.94 12.34 15.45 18.52 15.44 YoY Change (%) FY2015 FY2016 FY2017 FY2018 9M2
Slide 40: Profit/Loss – Geographical Segment
Profit/Loss – Geographical Segment YoY Profit/Loss Change YoY Change (S$ Million) 3Q2018 3Q2019 (%) 9M2018 9M2019 (%) Singapore 3.46 2.52 -27.1 9.67 7.53 -22.1 Hong Kong 0.83 1.30 +56.0 2.65 2.82 +6.5 Malaysia 0.22 0.30 +35.7 0.98 1.23 +24.8 Other1 (0.02) 0.09 NM (0.11) (0.16) +45.5 Profit before ta
Slide 41: Profit/Loss – Geographical Segment
Profit/Loss – Geographical Segment Profit/Loss (S$ Million) FY2015 FY2016 FY20172 FY2018 9M2019 Singapore 11.82 9.07 10.62 11.86 7.53 Hong Kong 1.65 0.53 1.77 3.42 2.82 Malaysia 0.28 0.38 1.07 1.37 1.23 Other1 (0.02) (0.16) (0.33) 0.52 (0.16) Profit before tax (excluding China operation) 13.73 9.82
Slide 42: Progress of Individual Markets: Singapore
Progress of Individual Markets SINGAPORE • While net revenue grew 4.0% YoY to S$31.14 million in 9M2019, net profit before tax fell 22.1% YoY to S$7.53 million in 9M2019 due to higher operating expenses incurred resulting from continuing efforts in enhancing its platforms Fintech capabilities and im
Slide 43: Progress of Individual Markets: Singapore
Progress of Individual Markets SINGAPORE • The annual Recommended Funds Report was released for investors and wealth advisers in 3Q2019. Based on a robust methodology that covers metrics including the risk-adjusted returns of the various funds, the Report is in its 19th edition and gives investors v
Slide 44: Progress of Individual Markets: Hong Kong
Progress of Individual Markets HONG KONG • Net revenue grew 14.2% YoY to S$12.17 million in 9M2019, while net profit before tax grew 6.5% YoY to S$2.82 million in 9M2019. • Hong Kong’s AUA grew 8.0% YoY to S$2.21 billion as of 30 September 2019. • Despite poor performance of Hong Kong’s financial ma
Slide 45: Progress of Individual Markets: Malaysia
Progress of Individual Markets MALAYSIA • Net revenue grew 25.4% YoY to S$4.54 million and net profit before tax grew 24.8% YoY to S$1.23 million in 9M2019. • Malaysia’s AUA grew 26.2% YoY to hit S$808.79 million as at 30 September 2019. • Supported by the rebound in investor sentiment and positive
Slide 46: Progress of Individual Markets: Malaysia
Progress of Individual Markets MALAYSIA • The revamped website and mobile application for the B2B platforms have completed beta testing and were officially launched in October 2019. Advisers are now able to assist their clients in transacting the various types of investments products available on th
Slide 47: Progress of Individual Markets: China
Progress of Individual Markets CHINA • China’s AUA fell 2.7% YoY but grew 16.1% QoQ to S$97.20 million (equivalent to RMB 501 million) as at 30 September 2019. While the QoQ increase of AUA is largely due to inflow of investment from institutional clients in the quarter, the AUA across all business
Slide 48: Progress of Individual Markets: China
Progress of Individual Markets CHINA • On 11 October 2019, the China Securities Regulatory Commission announced a timeframe for removing foreign ownership limits in Securities Brokerages, Fund Management Companies and Futures Companies. Foreign ownership limits in fund management companies will be r
Slide 49: Progress of Individual Markets: India
Progress of Individual Markets INDIA • As at 30 September 2019, iFAST Corp holds an effective 33.3% 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 grew 7.4%
Slide 50: Appendices
SECTION IV Appendices iFAST Corporation Ltd. 50
Slide 51: Business Overview
Business Overview • iFAST Corporation Ltd. is a wealth management fintech platform with assets under administration (AUA) of S$9.44 billion as at 30 Sep 2019 (stock code: AIY). • Main business divisions: ─ Business-to-Consumer (B2C) platform, Fundsupermart (including the new FSMOne multi-products ac
Slide 52: Milestones
Milestones 2000 2008 2014 • Launch of Fundsupermart.com • Launch of iFAST Platform Services • Incorporation of iFAST Platform (B2C) in Singapore (B2B) in Hong Kong Services (Shenzhen) Qianhai in China • Launch of Fundsupermart.com • Listing on SGX-ST 2002 (B2C) and iFAST Platform Services • Launch o
Slide 53: Milestones Cont'd
Milestones Cont’d 2016 2017 2019 • Acquisition of a stockbroking • Launch of stocks & ETFs on FSM Hong Kong • iFAST Singapore clinched “Fastest company and an insurance brokerage • Launch of bonds on FSM Malaysia and online Growing SGX-ST Member” Award at SGX firm in Hong Kong DPMS in Malaysia Award
Slide 54: Licences Held and Products and Services Available
Licences Held and Products and Services Available (as at 30 September 2019) • Type 1: Dealing in Securities [SFC] • Type 4: Advising on Securities [SFC] • Type 9: Asset Management [SFC] • MPFA • SEHK Participant • HKSCC Participant PRODUCTS AVAILABLE: UT / Bonds / Stocks / ETFs / DPMS • Fund Distrib
Slide 55: 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 56: iFAST's Fintech Footprint: Past and Present
iFAST’s Fintech Footprint: Past and Present PAST: Building the Foundation (2000-2013) PRESENT: Stepping Up the Game (2014-2019) Focus on building Fintech capabilities in-house to Focus on broadening the range and depth of investment efficiently and effectively deliver innovative products and asset c
Slide 57: iFAST Fintech Solutions
iFAST Fintech Solutions • The iFAST Fintech Solutions business division was set up in 2017, with the objectives to empower our business partners in advancing their wealth management business by delivering innovative fintech solutions that can better suit their clients’ needs, while combining busines
Slide 58: 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% 0.738% 0.729% 0.736% 0.740% 0.711% 0.700% 0.615% 0.607% 0.606% 0.602% 0.599% 0.600% 0.582% 0.582% 0.556% 0.551% 0.534% 0.500% 0.400% 0.300% 0.200% 0.100% 0.000% 2015 2016 2017 2018 9M2019 Net re
Slide 59: 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% 0.738% 0.732% 0.735% 0.738% 0.714% 0.700% 0.652% 0.640% 0.615% 0.625% 0.614% 0.609% 0.606% 0.596% 0.600% 0.600% 0.552% 0.500% 0.400% 0.300% 0.200% 0.100% 0.000% 2015 2016 2017 2018 9M2019 Net re
Slide 60: 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. 60
Slide 61: 3Q2019: Activities & Achievements
3Q2019: Activities & Achievements From left to right: iFAST Corp celebrates important milestones with SGX at the Daily Securities Market Opening event; The annual iFAST Awards Night was held in Singapore and Malaysia to recognise top performing FA companies and wealth advisers. From left to right: F
Slide 62: 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.