Slide 1: 2Q2023 & 1H2023 Results Presentation
iFASTCORPORATION iFAST CORPORATION LTD. LTD. 2Q2023 & 1H2023 Results Presentation 25 July 2023
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: Contents
Contents ▪ Key Summary Pg. 4 ▪ 2Q2023 (Apr-Jun 2023) & 1H2023 (Jan-Jun 2023) Results Pg. 8 SECTION I Financial Results ▪ Interim Dividends SECTION II Business Update ▪ Updates on iFAST’s 3-Year Plan Pg. 15 ▪ Financial Indicators Pg. 21 ▪ AUA Breakdown: Markets & Products SECTION III Performance Tren
Slide 4: Key Summary
Key Summary • The Group’s assets under administration (“AUA”) grew 3.7% QoQ and 8.0% YTD to S$18.81 billion as at 30 Jun 2023. • While markets and investor sentiments remained volatile in 2Q2023, net inflows remained positive and improved as compared to 1Q2023, rising 78.6% QoQ to S$559 million. • I
Slide 5: Key Summary
Key Summary • Contributions from iFAST Global Bank are expected to still be negative in 2H2023. However, the Group expects iFAST Global Bank to play a major role in the growth of the Group in the medium to long term, particularly beyond 2025. • Following the DPB’s launch in end-April, the division h
Slide 6: Group AUA increased 3.7% QoQ and 8.0% YTD to S$18.81 billion
Group AUA increased 3.7% QoQ and 8.0% YTD to S$18.81 billion as at 30 Jun 2023 S$ million AUA (as at 30 Jun 2023): S$18.81 billion1 $20,000 $18,000 $16,000 $14,000 $12,000 $10,000 $8,000 $6,000 $4,000 $2,000 $- Jun-01 Jun-02 Jun-03 Jun-04 Jun-05 Jun-06 Jun-07 Jun-08 Jun-09 Jun-10 Jun-11 Jun-12 Jun-1
Slide 7: Net Inflows & Gross Unit Trusts (UT) subscription
Net Inflows & Gross Unit Trusts (UT) subscription S$ million S$ million Net Inflows Gross UT Subscriptions $4,000 $8,000 $3,745 $7,052 $3,500 $7,000 $3,160 $3,000 $6,000 $5,647 $5,223 $2,500 $5,000 $2,104 $2,000 $4,000 $2,870 $2,917 $1,500 $1,262 $3,000 $976 $2,143 $1,000 $872 $2,000 $500 $1,000 $-
Slide 8: Financial Results
SECTION I Financial Results 8
Slide 9: Financial Indicators for Non-banking Operation (2Q2023 vs 2Q2022)
Financial Indicators for Non-banking Operation (2Q2023 vs 2Q2022) S$ (Million) 2Q20221 2Q2023 YoY change (%) Total revenue 48.04 49.97 +4.0 Total net revenue 25.94 28.98 +11.8 Operating expenses 22.33 22.23 -0.4 Profit before tax 4.57 7.41 +62.0 Profit after tax 3.39 5.75 +69.6 Net profit attributab
Slide 10: Financial Indicators for Non-banking Operation (1H2023 vs 1H2022)
Financial Indicators for Non-banking Operation (1H2023 vs 1H2022) S$ (Million) 1H20221 1H2023 YoY change (%) Total revenue 100.97 99.87 -1.1 Total net revenue 54.49 57.06 +4.7 Operating expenses 43.45 44.76 +3.0 Profit before tax 11.97 13.55 +13.2 Profit after tax 9.07 10.37 +14.4 Net profit attribu
Slide 11: Financial Results for Group (2Q2023 vs 2Q2022)
Financial Results for Group (2Q2023 vs 2Q2022) S$ (Million) 2Q2022 2Q2023 YoY change (%) Total revenue 53.91 54.21 +0.5 Total net revenue 29.86 31.81 +6.5 Other income 0.37 0.84 +129.4 Operating expenses 27.36 27.54 +0.7 Interest expenses on lease liabilities 0.15 0.26 +73.0 Share of results of asso
Slide 12: Financial Results for Group (1H2023 vs 1H2022)
Financial Results for Group (1H2023 vs 1H2022) S$ (Million) 1H2022 1H2023 YoY change (%) Total Revenue 106.84 108.14 +1.2 Total net revenue 58.41 62.81 +7.5 Other income 0.66 1.24 +87.6 Operating expenses 48.48 54.92 +13.3 Interest expenses on lease liabilities 0.28 0.35 +27.6 Share of results of as
Slide 13: Results Overview for Group
Results Overview for Group S$ (Million) FY2019 FY2020 FY2021 FY20221 1H20231 Total revenue2 126.61 170.76 216.90 208.87 108.14 Total net revenue2 65.91 86.64 113.91 118.24 62.81 Other income 2.04 5.21 0.49 1.72 1.24 Operating expenses 56.06 65.29 77.68 103.84 54.92 Interest expenses on lease liabili
Slide 14: Second Interim Dividend for FY2023
Second Interim Dividend for FY2023 Second Interim Dividend for FY2023 - Schedule Dividend per share 1.10 cents per ordinary share Ex-dividend date 4 Aug 2023 Record date and time 7 Aug 2023 (5.00 pm) Payment date 21 Aug 2023 • For the second interim dividend for 2Q2023, the Directors declared a divi
Slide 15: Business Update
Section II Business Update 15
Slide 16: Recap of iFAST's Three-Year Plan
Recap of iFAST’s Three-Year Plan 1. Core Platform Business: Get Bigger, Better and More Profitable. Continue to work on increasing the scale and quality of its Fintech wealth management platform in various markets, in line with the Group’s target AUA of S$100 billion by 2028. Improve operating margi
Slide 17: Updates on iFAST Three-Year Plan
Updates on iFAST Three-Year Plan Updates on Wealth Management Business • Across the Group, a number of business units achieved record high AUA in 2Q2023, including Singapore B2B division as well as the iFAST Global Markets (iGM) division in Singapore, Hong Kong and Malaysia. AUA for Singapore and Ma
Slide 18: Updates on iFAST Three-Year Plan
Updates on iFAST Three-Year Plan Updates on iFAST Global Bank • Following the launch of Digital Personal Banking (DPB) platform on iFAST Global Bank (iGB) in late April 2023, the bank has received encouraging interest and responses from global customers. • In line with the banks’ vision to enable co
Slide 19: Updates on iFAST Three-Year Plan
Updates on iFAST Three-Year Plan Updates on iFAST ePension Division • A blog entry titled “eMPF Platform targets full operation in 2025” published on the MPFA website on 16 July 2023 has provided insights into the progress of ePension platform launch. • According to the blog entry, the authority has
Slide 20: Guidance on Hong Kong Targets (Updated in Apr 2022)
Guidance on Hong Kong Targets (Updated in Apr 2022) • On 23 April 2022, the Group updated the targeted revenue and Profit Before Tax (PBT) for its overall Hong Kong business in 2023, 2024 and 2025: o Gross Revenue Targets ▪ Target to achieve Gross Revenue of >HKD400 million in 2023 ▪ Target to achie
Slide 21: Performance Trend
SECTION III Performance Trend \ 21
Slide 22: Financial Indicators
Financial Indicators S$ (Million) FY2019 FY2020 FY2021 FY2022 1H2023 EBITDA4 25.53 42.04 54.79 37.643 24.40 Operating Cashflows4 19.38 41.56 46.53 35.29 17.35 Net Cash Position1 40.15 53.28 59.29 84.09 60.79 Capital Expenditure2 11.90 12.63 21.62 17.87 6.11 Net Current Assets 49.86 58.35 68.03 108.4
Slide 23: PBT Margin for Group
PBT Margin for Group (Based on Total Net Revenue) 35.0% 31.6% 29.6% 30.0% 25.0% 20.0% 17.0% 15.0% 13.5%1 14.3% 10.0% 5.0% 0.0% 2019 2020 2021 2022 1H2023 Notes: 1. Includes the new banking operation for FY2022 and excludes impairment loss of S$5.2 million related to India Business recognised in 2Q20
Slide 24: Return on Equity
Return on Equity 30.0% 25.8% 25.0% 21.8% 20.0% 15.0% 10.9% 10.0% 5.8% 5.0%1 5.0% 0.0% 2 2019 2020 2021 2022 1H2023 Notes: 1. Excluding impairment loss of S$5.2 million related to India Business recognised in 2Q2022. 2. The Group conducted a S$103 million share placement exercise in January 2022. 24
Slide 25: Net Cash Position
Net Cash Position As at 31 Dec 2022 As at 30 Jun 2023 (S$ million) (S$ million) Cash and Cash Equivalents 151.13 134.15 Other Investments¹ 41.71 61.05 Less: Customers’ Deposits (96.54) (119.25) Total Cash 96.30 75.95 Less: Bank Loans (12.21) (15.16) Net Cash Position 84.09 60.79 Gross Debt-to-Equity
Slide 26: Group Operating Cashflows
Group Operating Cashflows S$ million 50.00 47.40 46.53 45.00 41.56 40.00 35.00 30.00 25.00 19.38 20.00 17.77 15.00 10.00 5.00 0.00 2019 2020 2021 2022 1H2023 26
Slide 27: Capital Expenditure
Capital Expenditure S$ million 25.00 21.62 21.00 20.00 17.87 15.00 12.63 11.90 10.00 5.00 0.00 Note: 2019 2020 2021 2022 2023F 1. Capital Expenditure for 1H2023 stood at S$6.11 million. 27
Slide 28: Number of Issued Shares
Number of Issued Shares As at 31 Dec 2022 As at 30 Jun 2023 Total number of issued shares (excluding treasury shares and subsidiary 293,045,941 295,267,941 holdings) 28
Slide 29: Our Consolidated Financial Position
Our Consolidated Financial Position As at 31 Dec 22 As at 30 Jun 23 S$’000 S$’000 ASSETS Plant and Equipment 5,962 7,511 Right-of-use Assets 10,391 18,667 Intangible Assets and Goodwill 73,993 74,301 Associates 3,479 417 Other Investments 23,034 29,060 Deferred Tax Assets 2,380 2,220 Contract Costs
Slide 30: Our Consolidated Financial Position
Our Consolidated Financial Position As at 31 Dec 22 As at 30 Jun 23 S$’000 S$’000 EQUITY Share Capital 171,059 171,103 Reserves 51,429 58,950 EQUITY ATTRIBUTABLE TO OWNERS OF THE COMPANY 222,488 230,053 Non-Controlling Interests 8,229 8,011 TOTAL EQUITY 230,717 238,064 LIABILITIES Deferred Tax Liabi
Slide 31: Held under Trust
Held under Trust As at 31 Dec 22 As at 30 Jun 23 S$’000 S$’000 HELD UNDER TRUST Client monies maintained in bank deposit accounts 933,368 1,021,644 Client monies maintained in government debt securities treasury - 911 accounts Client ledger balances (933,368) (1,022,555) - - • Certain non-banking su
Slide 32: Regulatory Ratios – iFAST Global Bank
Regulatory Ratios – iFAST Global Bank Minimum Average Ratio of Regulatory Ratios As at 30 Jun 2023 Regulatory 3 Singapore local Requirement banks Liquidity Coverage Ratio (“LCR”) 803% 100% 151% Net Stable Funding Ratio (“NSFR”) 293% 100% 120% Total Capital Ratio 39% 12.91% 18% The Group has started
Slide 33: AUA Breakdown: Markets & Products
AUA Breakdown: Markets & Products (as at 30 Jun 2023) AUA Breakdown By Markets AUA Breakdown By Products 2.6% 5.4% 11.0% 20.8% 13.1% 7.9% 65.9% 73.3% Singapore Hong Kong Unit Trusts Bonds Malaysia Others (China & UK) Stocks & ETFs Cash Account & Deposits 33
Slide 34: Fixed Income: Strong Turnover Continued in 2Q2023
Fixed Income: Strong Turnover Continued in 2Q2023 S$ million Fixed Income Turnover 500 450 400 350 300 250 200 150 100 50 0 34
Slide 35: Total Net Revenue Breakdown between Recurring and Non-recurring Sources
Total Net Revenue1 Breakdown between Recurring and Non-recurring Sources Average contribution from recurring net revenue as opposed to non-recurring net revenue S$ million in the period from 2022 to 1H2023 was 73.2% 140 120 100 34.4 34.5 80 25.5 60 12.3 11.3 15.4 8.5 83.9 40 6.9 6.0 78.7 7.2 60.4 6.
Slide 36: Total Net Revenue, Operating Expenses and Operating Profit as a Ratio of Average AUA
Total Net Revenue1, Operating Expenses and Operating Profit as a Ratio of Average AUA 0.800% 0.757% 0.731% 0.700% 0.692% 0.665% 0.667% 0.138% 0.225% 0.194% 0.600% 0.629% 0.607% 0.203% 0.170% 0.586% 0.500% 0.576% 0.400% 0.456% 0.300% 0.594% 0.533% 0.524% 0.462% 0.473% 0.200% 0.181% 0.209% 0.100% 0.08
Slide 37: Profit/Loss - Geographical Segment
Profit/Loss - Geographical Segment Profit/Loss YoY Change YoY Change (S$ Million) 2Q2022 2Q2023 (%) 1H2022 1H2023 (%) Singapore 3.56 6.22 +74.7 8.93 10.76 +20.4 Hong Kong 1.69 1.76 +4.1 3.88 4.05 +4.3 Malaysia 0.49 1.25 +153.8 2.25 2.10 -6.8 China (1.85) (1.83) -0.8 (3.50) (3.59) +2.5 Other1 0.67 (-
Slide 38: Profit/Loss - Geographical Segment
Profit/Loss - Geographical Segment Profit/Loss (S$ Million) FY2019 FY2020 FY2021 FY2022 1H2023 Singapore 9.96 21.32 28.43 16.57 10.76 Hong Kong 4.42 5.79 8.39 8.07 4.05 Malaysia 1.76 3.75 5.39 4.25 2.10 China (4.82) (4.88) (5.82) (7.12) (3.59) Other1 (0.05) (0.41) (0.35) 0.30 0.23 Non-banking operat
Slide 39: Total Net Revenue - Geographical Segment
Total Net Revenue - Geographical Segment S$ (Million) FY2019 FY2020 FY2021 FY2022 1H2023 Singapore 42.35 56.79 73.50 70.49 37.56 Hong Kong 16.81 19.26 24.43 24.15 11.82 Malaysia 6.15 8.77 13.43 13.64 6.84 China 0.60 1.82 2.55 1.77 0.83 UK - - - 8.19 5.76 Group 65.91 86.64 113.91 118.24 62.81 YoY Cha
Slide 40: Recurring and Non-recurring Total Net Revenue (Include Banking Operation)
Recurring and Non-recurring Total Net Revenue (Include Banking Operation) S$ (Million) FY2019 FY2020 FY2021 FY20221 1H20231 Recurring net revenue2 53.65 61.17 79.38 83.86 47.41 Non-recurring net revenue 12.26 25.47 34.53 34.38 15.40 Total net revenue2 65.91 86.64 113.91 118.24 62.81 YoY Change (%) F
Slide 41: Recurring and Non-recurring Total Net Revenue (Exclude Banking Operation)
Recurring and Non-recurring Total Net Revenue (Exclude Banking Operation) S$ (Million) FY2019 FY2020 FY2021 FY20221 1H20231 Recurring net revenue2 53.65 61.17 79.38 83.61 46.27 Non-recurring net revenue 12.26 25.47 34.53 26.44 10.79 Total net revenue2 65.91 86.64 113.91 110.05 57.06 YoY Change (%) F
Slide 42: Net Revenue - B2B Business Segment
Net Revenue1 - B2B Business Segment B2B Net Revenue FY2019 FY2020 FY2021 FY2022 1H2023 (S$ Million) Recurring net revenue 37.12 42.34 55.73 58.05 31.59 Non-recurring net revenue 7.19 10.88 16.42 16.66 7.10 Total B2B net revenue 44.31 53.22 72.15 74.72 38.68 YoY Change (%) FY2019 FY2020 FY2021 FY2022
Slide 43: Net Revenue - B2C Business Segment
Net Revenue1 - B2C Business Segment B2C Net Revenue FY2019 FY2020 FY2021 FY2022 1H2023 (S$ Million) Recurring net revenue 15.81 18.04 22.96 22.99 12.54 Non-recurring net revenue 5.08 14.60 18.11 9.78 3.70 Total B2C net revenue 20.89 32.64 41.07 32.77 16.24 YoY Change (%) FY2019 FY2020 FY2021 FY2022
Slide 44: Progress of Individual Markets - Singapore
Progress of Individual Markets SINGAPORE • Net revenue for the Singapore operation increased 14.1% YoY to S$19.30 million in 2Q2023 and increased 8.9% YoY to S$37.56 million in 1H2023. • AUA of the Singapore operation rose 4.4% QoQ and 9.8% YoY to S$13.79 billion as at 30 Jun 2023. • The AUA of the
Slide 45: Progress of Individual Markets - Singapore
Progress of Individual Markets SINGAPORE • The iGM division launched the iFAST Digital Term insurance solution over the quarter, and iGM clients can now purchase affordable term life insurance cover of up to S$1 million by answering just three simple health questions. In the spirit of making insuran
Slide 46: Progress of Individual Markets - Hong Kong
Progress of Individual Markets HONG KONG • Net revenue for the Hong Kong operation rose 0.5% YoY to S$5.70 in 2Q2023, though declining 2.0% YoY to S$11.83 million in 1H2023. • AUA of the Hong Kong operation grew 1.2% QoQ and 0.9% YoY to S$2.50 billion as at 30 Jun 2023. The Hong Kong operation conti
Slide 47: Progress of Individual Markets - Hong Kong
Progress of Individual Markets HONG KONG • The Hong Kong iGM division achieved record high AUA again in 2Q2023, increasing 6.4% QoQ and 47.7% YoY. The increment was mainly due to net inflows and transfer-in, which were supported by the income-focused product strategy and competitive cash solutions.
Slide 48: Progress of Individual Markets - Malaysia
Progress of Individual Markets MALAYSIA • Net revenue for the Malaysia operation increased 23.6% YoY in 2Q2023 to S$3.60 million, but fell 1.6% YoY in 1H2023 to S$6.84 million. • The Malaysia operation AUA rose 1.6% QoQ and 9.2% YoY to S$2.07 billion as at 30 Jun 2023, achieving another record high
Slide 49: Progress of Individual Markets - Malaysia
Progress of Individual Markets MALAYSIA • The Malaysia iGM division has continued to see decent AUA growth in 2Q2023, where AUA grew 2.8% QoQ and 36.3% YoY, achieving another record high AUA quarter in 2Q2023. • iGM Malaysia continued to record positive net inflow in 2Q2023, mainly led by bond and U
Slide 50: Progress of Individual Markets - China
Progress of Individual Markets CHINA • Net revenue for China operation fell 12.9% YoY to S$0.39 million in 2Q2023. On a YoY basis, net revenue fell 12.9% to S$0.83 million. • The AUA of China operations fell -1.2% QoQ and -15.2% YoY to 1.96 billion RMB (approximately S$366 million) as of 30 Jun 2023
Slide 51: Progress of Individual Markets - UK
Progress of Individual Markets UK • iFAST Global Bank (iGB) saw Net Revenue increasing 46.8% YoY in 1H2023, though it fell 28.1% YoY to S$2.82 million in 2Q2023. The UK operations also incurred a 2Q2023 and 1H2023 loss of S$2.23 million and S$3.94 million respectively. • The EzRemit business remains
Slide 52: Appendices
SECTION IV Appendices 52
Slide 53: Business Overview
Business Overview • iFAST Corporation Ltd. is a digital banking and wealth management fintech platform with assets under administration (AUA) of S$18.81 billion as at 30 Jun 2023 (stock code: AIY). • Main business divisions: o Business-to-Consumer (B2C): FSMOne.com (formerly “Fundsupermart”) a multi
Slide 54: Milestones
Milestones ▪ Launch of iFAST Platform ▪ Incorporation of iFAST ▪ Acquired a stake in the holding Services (B2B) in HK Platform Services company of iFAST India ▪ Launch of (Shenzhen) Qianhai in Business Launch of iFAST Fundsupermart.com (B2C) China (CN) ▪ Launch of HKEX stockbroking on Platform Servi
Slide 55: Milestones
Milestones ▪ Acquisition of iFAST Global Bank ▪ Launch of revamped Limited, a fully licensed UK-based ▪ Launch of US FSMOne mobile apps in bank (formerly known as BFC Bank stockbroking in HK SG, HK and MY Limited) ▪ Launch of FSMOne ▪ Registered as Private ▪ Launch of FSMOne Debit Card and in MY Fun
Slide 56: iFAST Fintech Ecosystem
iFAST Fintech Ecosystem Connecting All to Help Investors Invest Globally and Profitably (as at 30 Jun 2023) Online Account Multi-Currency Opening Deposits Digital Bank EzRemit Payment / Banking as a Remittance Service (BaaS) Over 815,000 B2C Fundsupermart.com / FSMOne.com / customer accounts Bondsup
Slide 57: The iFAST Fintech Ecosystem
The iFAST Fintech Ecosystem • Products and services: ─ Unit trusts (over 12,000 funds from over 310 fund houses) ─ Bonds (over 2,000 direct bonds) ─ Stocks & ETFs – in 5 markets (Singapore, Hong Kong, US, Malaysia & China A Shares) ─ Discretionary portfolio management services • Over 630 financial i
Slide 58: iFAST Global Bank: Strategic Growth Target
iFAST Global Bank: Strategic Growth Target STRATEGIC GROWTH TARGET SUSTAINABLE MODEL Distinct geographic presence, market Short Term Long Term sectors leading to financial resilience • NPA, RTGS, Indirect Digital Transaction Enhanced IT & Participation, Other Banking Bank Of England Clearing Facilit
Slide 59: Truly Global Business Model
Truly Global Business Model • The Future Of Wealth Management. The Group believes that the future of wealth management is one where many investors from various emerging markets will be looking for the best wealth management platforms across the world that can provide them seamless access and connect
Slide 60: 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 Recurring Net Revenue o Trailer fee
Slide 61: Breakdown of Net Revenue
Breakdown of Net Revenue (FY2022) ePension division income, 3.9% Others, 1.2% Fintech Solutions IT fees, 3.2% FX Margin, 4.5% Transaction Fees/Commission Income (Banking Operation), 6.7% Transaction Fees/Commission Trailer Fee, 39.7% Income (Other Products), 8.8% Transaction Fees/Commission Income (
Slide 62: Licences Held and Products and Services Available
Licences Held and Products and Services Available (as at 30 June 2023) SINGAPORE HONG KONG MALAYSIA LICENCES & REGISTRATION HELD: LICENCES & REGISTRATION HELD: LICENCES & REGISTRATION HELD : • Capital Markets Services Licence [MAS] • Type 1: Dealing in Securities [SFC] • Capital Market Services Lice
Slide 63: Our Value Proposition
Our Value Proposition B2B B2C PRODUCT PROVIDERS CUSTOMERS DIY INVESTORS • One platform, multiple • One platform, multiple investment products • One platform, multiple B2C and B2B customers • Adoption of recurring revenue business model investment products • No need to enter into based on Assets Unde
Slide 64: 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 OTHER ADVISORY COMPANIES FINTECH SOLUTIONS FACILITIES SERVICE FEES 64
Slide 65: 2Q2023: Activities & Achievements
2Q2023: Activities & Achievements iFAST Corp Annual General Meeting 2023 (Hybrid) Investor events held in 2Q2023: Singapore FSM ETFestival 2023 (May 2023) New Products / Services Launch Events: iFAST Global Bank Digital Personal Banking launch in UK and Singapore; iFAST ORSO ePension Services launch
Slide 66: THANK YOU!
THANK YOU! For more information, please visit: www.ifastcorp.com