Slide 1: 4Q2020 & FY2020 Results Presentation
5 FEB 2021 4Q2020 & FY2020 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 4Q2020 (Oct–Dec 2020) & FY2020 (Jan–Dec 2020) Results Pg. 8 Section I o Financial Indicators Financial Results o Proposed Final Dividend o AUA Breakdown: Markets & Products Pg. 22 Section II o Recurring and Non-recurring Net Revenue Our Performance o Performan
Slide 4: Key Summary
Key Summary • The Group reported record quarterly net profit of S$6.83 million in 4Q2020, an increase of 127.5% compared to 4Q2019. This was achieved on the back of 43.5% YoY increase in net revenue and 41.6% YoY increase in gross revenue. For the full year 2020 (“FY2020”), net profit grew 122.3% Yo
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 44.5% YoY and 14.8% QoQ to S$14.45 billion
Group AUA grew 44.5% YoY and 14.8% QoQ to S$14.45 billion as at 31 December 2020 S$ million AUA (as at 31 Dec 2020): S$14.45 billion1 $15,000.00 $14,000.00 $13,000.00 $12,000.00 $11,000.00 $10,000.00 $9,000.00 $8,000.00 $7,000.00 $6,000.00 $5,000.00 $4,000.00 $3,000.00 $2,000.00 $1,000.00 $- Dec-00
Slide 7: Net inflows & Subscription ex-switching
Net inflows & Subscription ex-switching S$ million Net inflows S$ million Subscription ex-switching $3,500 $12,000 $11,082 $3,160 $3,000 $10,000 $2,500 $8,000 $2,000 $6,000 $1,500 $4,328 $4,000 $942 $976 $3,605 $3,343 $1,000 $786 $847 $2,453 $2,000 $500 $1,574 $1,229 $235 $268 $- $- 2016 2017 2018 2
Slide 8: Financial Results
SECTION I Financial Results iFAST Corporation Ltd. 8
Slide 9: Financial Results for Group (4Q2020 vs 4Q2019)
Financial Results for Group (4Q2020 vs 4Q2019) S$ (Million) 4Q2019 4Q2020 YoY change (%) Revenue 33.82 47.90 +41.6 Net revenue 16.96 24.33 +43.5 Other income 0.52 1.56 +202.5 Operating Expenses 14.24 17.61 +23.7 Net finance (costs) / income 0.04 -0.06 NM Share of results of associates, net of tax 0.
Slide 10: Financial Results for Group (FY2020 vs FY2019)
Financial Results for Group (FY2020 vs FY2019) S$ (Million) FY2019 FY2020 YoY change (%) Revenue 125.41 169.93 +35.5 Net revenue 65.20 85.86 +31.7 Other income 2.04 5.21 +155.4 Operating Expenses 56.06 65.29 +16.5 Net finance (costs) / income -0.06 0.03 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 FY2020 Revenue 80.60 101.17 121.24 125.41 169.93 Net revenue 40.69 49.45 59.62 65.20 85.86 Other income 1.88 1.08 1.16 2.04 5.21 Operating expenses 37.16 42.19 49.78 56.06 65.29 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 FY2020 Revenue 79.89 100.65 120.50 124.84 168.14 Net revenue 40.46 49.01 58.87 64.64 84.10 Other income 1.88 1.10 1.16 2.04 5.18 Operating expenses 33.13 37.31 44.12 50.43 58.44 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) 35.0% 40.0% 36.2% 29.6% 35.0% 30.0% 30.0% 29.2% 25.0% 26.8% 24.3% 24.9% 20.7% 25.0% 20.0% 17.7% 17.0% 20.0% 15.0% 15.0% 15.0% 10.0% 10.0% 5.0% 5.0% 0.0% 0.0% 2016 2017 2018 2019 2020 2016 2017 2018 20
Slide 14: Financial Indicators
Financial Indicators S$ (Million) FY2016 FY2017 FY2018 FY2019 FY2020 EBITA 7.59 12.96 16.44 17.49 32.98 Net Cash Position1 54.59 55.91 48.06 40.15 53.28 Operating Cash Flows 5.63 13.22 17.62 19.38 41.56 Operating Cash Flows (excluding China 8.79 16.92 21.62 23.54 45.10 Operation) Capital Expenditure
Slide 15: Net Cash Position
Net Cash Position As at 31 Dec 2020 (S$ million) Cash and cash equivalents 36.44 Other investments¹ 16.84 Total cash and other investments 53.28 Less: Bank loans - Net Cash Position 53.28 (total cash and other investments net off bank loans) Gross Debt-to-Equity Ratio 0.00% Net Debt-to-Equity Ratio
Slide 16: Group Operating Cash Flows
Group Operating Cash Flows S$ million 50.00 45.10 45.00 41.56 40.00 35.00 30.00 25.00 23.54 21.62 19.38 20.00 17.62 16.92 15.00 13.22 10.00 8.79 5.63 5.00 0.00 2016 2017 2018 2019 2020 Operating Cash Flows (excluding China) Operating Cash Flows (including China) iFAST Corporation Ltd. 16
Slide 17: Capital Expenditure
Capital Expenditure S$ thousand 14,000 12,631 11,901 12,000 10,727 10,000 7,466 8,000 6,615 6,000 5,454 4,000 2,339 2,000 1,554 214 - 2012 2013 2014 2015 2016 2017 2018 2019 2020 iFAST Corporation Ltd. 17
Slide 18: Number of issued shares
Number of issued shares As at 31 Dec 2019 As at 31 Dec 2020 Total number of issued shares (excluding treasury shares and 268,732,479 272,407,635 subsidiary holdings) iFAST Corporation Ltd. 18
Slide 19: Our Consolidated Financial Position
Our Consolidated Financial Position As at 31 Dec 19 As at 31 Dec 20 S$’000 S$’000 NON-CURRENT ASSETS Plant and Equipment 3,689 4,283 Right-of-use Assets 14,390 18,538 Intangible Assets and Goodwill 22,212 25,500 Associates 5,375 5,982 Other Investments 5,329 3,944 Deferred Tax Assets 1,139 1,099 Pre
Slide 20: Our Consolidated Financial Position
Our Consolidated Financial Position As at 31 Dec 19 As at 31 Dec 20 S$’000 S$’000 EQUITY Share Capital 66,180 66,976 Other Reserves 23,877 37,133 EQUITY ATTRIBUTABLE TO OWNERS OF THE COMPANY 90,057 104,109 Non-Controlling Interests (421) (709) TOTAL EQUITY 89,636 103,400 NON-CURRENT LIABILITIES Defe
Slide 21: Proposed Final Dividend for FY2020
Proposed Final Dividend for FY2020 Proposed Final Dividend for FY2020 - Schedule Dividend per share 1.00 cents per ordinary share Ex-dividend date 3 May 2021 Record date and time 4 May 2021 (5.00 pm) Payment date 17 May 2021 • For the final dividend for FY2020, the Directors proposed an increase in
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 31 December 2020) AUA Breakdown By Markets AUA Breakdown by Products 3.2% 5.6% 9.2% 12.9% 6.1% 18.4% 69.2% 75.4% 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 2020 was 75.8% S$ million 100 90 80 25.5 70 60 12.3 11.3 50 8.5 40 6.9 6.0 7.2 30 6.0 60.4 52.9 4.8 4.0 48.3 20 18.1 12
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% 0.225% 0.600% 0.500% 0.400% 0.300% 0.609% 0.606% 0.596% 0.594% 0.533% 0.200% 0.100% 0.000% 2016 2017 2018 2019 2020 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 FY2020 Recurring net revenue 34.71 40.95 48.32 52.94 60.39 Non-recurring net 5.98 8.50 11.30 12.26 25.47 revenue Total net revenue 40.69 49.45 59.62 65.20 85.86 YoY Change (%) FY2016 FY2017 FY2018 FY2019 FY2020 Recurrin
Slide 27: Net Revenue – Geographical Segment
Net Revenue – Geographical Segment S$ (Million) FY2016 FY2017 FY2018 FY2019 FY2020 Singapore 29.54 34.77 39.30 41.95 56.33 Hong Kong 8.66 10.78 14.26 16.71 19.22 Malaysia 2.26 3.47 5.32 5.97 8.55 China 0.23 0.43 0.75 0.57 1.76 Group 40.69 49.45 59.62 65.20 85.86 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 FY2020 (S$ Million) Recurring net revenue 24.49 28.85 33.88 37.12 42.34 Non-recurring net revenue 3.86 5.15 7.22 7.19 10.88 Total B2B net revenue 28.35 34.00 41.10 44.31 53.22 YoY Change (%) FY2016 FY2017 FY2018 FY2019 FY
Slide 29: Net Revenue – B2C Business Segment
Net Revenue – B2C Business Segment B2C Net Revenue FY2016 FY2017 FY2018 FY2019 FY2020 (S$ Million) Recurring net revenue 10.22 12.10 14.44 15.81 18.04 Non-recurring net revenue 2.12 3.35 4.08 5.08 14.60 Total B2C net revenue 12.34 15.45 18.52 20.89 32.64 YoY Change (%) FY2016 FY2017 FY2018 FY2019 FY
Slide 30: Profit/Loss – Geographical Segment
Profit/Loss – Geographical Segment YoY YoY Profit/Loss Change Change (S$ Million) 4Q2019 4Q2020 (%) FY2019 FY2020 (%) Singapore 2.43 6.91 +184.7 9.96 21.32 +114.1 Hong Kong 1.61 1.73 +7.9 4.42 5.79 +30.9 Malaysia 0.53 0.94 +76.0 1.76 3.75 +113.0 Other1 0.11 -0.27 NM (0.05) (0.41) +774.5 Profit befor
Slide 31: Profit/Loss – Geographical Segment
Profit/Loss – Geographical Segment Profit/Loss (S$ Million) FY2016 FY20172 FY2018 FY2019 FY2020 Singapore 9.07 10.62 11.86 9.96 21.32 Hong Kong 0.53 1.77 3.42 4.42 5.79 Malaysia 0.38 1.07 1.37 1.76 3.75 Other1 (0.16) (0.33) 0.52 (0.05) (0.41) 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 800.00 698.63 700.00 612.30 600.00 516.78 500.00 400.00 353.47 300.00 249.72 229.80 200.00 184.09 100.00 29.92 13.38 0.00 2012 2013 2014 2015 2016 2017 2018 2019 2020 iFAST Corporation Ltd. 32
Slide 33: Progress of Individual Markets: Singapore
Progress of Individual Markets SINGAPORE iFAST Singapore Total Sales ex-switching S$ million 1,800 1,700 1,600 1,500 1,400 1,300 1,200 1,100 1,000 900 800 700 600 500 400 300 200 100 - 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20
Slide 34: Progress of Individual Markets: Singapore
Progress of Individual Markets SINGAPORE • Net revenue for the Singapore operation increased by 50.2% YoY to S$16.24 million in 4Q2020, and rose by 34.3% YoY to S$56.33 million in FY2020. • The growth in net revenue was due to the robust growth rates in AUA, sales and net inflows for FSMOne.com, its
Slide 35: Progress of Individual Markets: Singapore
Progress of Individual Markets SINGAPORE • As part of FSMOne’s continued effort to provide investment ideas to investors, the “FSMOne What and Where to Invest 2021” virtual investment conference was organised over multiple days in January 2021. The investment presentations and panel discussions gath
Slide 36: Progress of Individual Markets: Hong Kong
Progress of Individual Markets HONG KONG • Net revenue for the Hong Kong operation increased by 13.5% YoY to S$5.16 million in 4Q2020, and rose by 15.0% YoY to S$19.22 million in FY2020. • The AUA of the Hong Kong operation grew by 16.1% YoY and 5.5% QoQ to S$2.66 billion as at 31 December 2020. • D
Slide 37: Progress of Individual Markets: Hong Kong
Progress of Individual Markets HONG KONG • The Hong Kong bond business remained strong, especially in the retail space. Bonds turnover for the B2C division, FSMOne.com, grew 51% YoY to a record high in FY2020. • The B2B wealth advisory arm, iFAST Global Markets (iGM), achieved decent growth in 2020.
Slide 38: Progress of Individual Markets: Hong Kong
Progress of Individual Markets HONG KONG • In a press release published on 30 January 2021, iFAST Corp gave an update on its participation in the eMPF Platform project. • The eMPF Platform aims to standardise, streamline and automate the MPF scheme administration processes to create room for fee red
Slide 39: Progress of Individual Markets: Malaysia
Progress of Individual Markets MALAYSIA • Net revenue for the Malaysia operation increased by 59.9% YoY to S$2.29 million in 4Q2020, and rose by 43.2% YoY to S$8.55 million in FY2020. • The AUA of the Malaysia operation increased 13.4% QoQ driven by positive investors’ sentiment arising from success
Slide 40: Progress of Individual Markets: Malaysia
Progress of Individual Markets MALAYSIA • Despite the disruption resulting from the Movement Control Order in Malaysia, the increased digital adoption and subsequent pent up demand from investors have led to a record number of account openings across the Malaysia operation. In FY2020, the number of
Slide 41: Progress of Individual Markets: China
Progress of Individual Markets CHINA • Net revenue for the China operation grew 270.9% YoY to S$0.65 million in 4Q2020, and rose by 210.6% to S$1.76 million in FY2020. • While wrap fee income currently accounts for close to 10% of China’s overall net revenue, the Group believes that as the adoption
Slide 42: Progress of Individual Markets: China
Progress of Individual Markets CHINA • Notably, money market funds accounts for 13% of the overall AUA of the China operation. This is a significantly lower percentage as compared to other internet- based fund distributors in China. In 2020, the bulk of the sales on the iFAST China platform comprise
Slide 43: Progress of Individual Markets: India
Progress of Individual Markets INDIA • As at 31 December 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. • The AUA of the India o
Slide 44: Progress of Individual Markets: India
Progress of Individual Markets INDIA • Global investing trend is picking up in India with asset management companies rolling out more international funds to meet the growing demand. As the concept of global investing is relatively new for investors in India, iFAST India is launching its first global
Slide 45: Appendices
SECTION III Appendices iFAST Corporation Ltd. 45
Slide 46: Business Overview
Business Overview • iFAST Corporation Ltd. is a wealth management fintech platform with assets under administration (AUA) of S$14.45 billion as at 31 December 2020 (stock code: AIY). • Main business divisions: o Business-to-Consumer (B2C) platform, Fundsupermart (including the new FSMOne multi-produ
Slide 47: 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 48: 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 49: iFAST Fintech Ecosystem
iFAST Fintech Ecosystem (as at 31 Dec 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 550,000 customer FA Companies accounts in 5 markets Over 460 compan
Slide 50: The iFAST Fintech Ecosystem
The iFAST Fintech Ecosystem • Products and services: ─ Unit trusts (over 7,800 funds from over 270 fund houses) ─ Bonds (over 1,400 direct bonds) ─ Stocks & ETFs – in 3 markets (Singapore, Hong Kong and US) ─ Discretionary portfolio management services • Over 460 financial institutions and other cor
Slide 51: 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 52: Licences Held and Products and Services Available
Licences Held and Products and Services Available (as at 31 December 2020) LICENCES HELD: • Fund Distributor Qualification [CSRC] • Associate Member of AMAC • Member of SAMC • Registered Private Fund Manager [AMAC] PRODUCTS AVAILABLE: UT LICENCES HELD: • Registered Investment Adviser with SEBI LICEN
Slide 53: 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 54: 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% 0.757% 0.732% 0.735% 0.731% 0.714% 0.700% 0.652% 0.625% 0.614% 0.629% 0.609% 0.606% 0.596% 0.594% 0.576% 0.600% 0.533% 0.500% 0.400% 0.300% 0.200% 0.100% 0.000% 2016 2017 2018 2019 2020 Net reve
Slide 55: 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% 0.753% 0.729% 0.736% 0.733% 0.711% 0.700% 0.607% 0.606% 0.599% 0.596% 0.582% 0.600% 0.556% 0.551% 0.572% 0.534% 0.523% 0.500% 0.400% 0.300% 0.200% 0.100% 0.000% 2016 2017 2018 2019 2020 Net reve
Slide 56: 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. 56
Slide 57: 4Q2020: Activities & Achievements
4Q2020: Activities & Achievements (L-R): iFAST Corp released its “Celebrating 20 Years” video series featuring the Group’s CEO and employees across the region in December 2020; iFAST Global Markets (iGM) Singapore hosted the inaugural iGM SG Symposium in December 2020. (L-R) FSMOne.com Hong Kong con
Slide 58: 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.