Slide 1: 4Q & Full Year FY2014 Results Presentation
4Q & Full Year FY2014 Results Presentation 12 February 2015 PRIVATE & CONFIDENTIAL. NOT FOR EXTERNAL CIRCULATION. CO. REG. NO. R200007899C Page 1
Slide 2: Disclaimer
Disclaimer This presentation should be read as an overview of iFAST Corporation Ltd.’s ("iFAST Corp" or together with its subsidiaries, the “Group”) current business activities and operating environment. This presentation should not be solely relied upon by current and potential investors when makin
Slide 3: Table of Content
Table of Content Section Title I Financial Results FY2014 and 4Q2014 Results Net sales and subscription excluding switching Financial ratios Financial position Dividend policy II Performance Trends Assets under Administration (AUA) Recurring net revenue, non-recurring net revenue and o
Slide 4: Key summary
Key summary • Adjusted net profit was up 33.7% YoY to S$10.51 million in FY2014 and adjusted EPS was up 30.1% YoY to 5.06 Net profit & EPS cents per share in FY2014 (excluding IPO expenses of S$1.95 million in FY2014 and one-off gain of S$0.62 million in FY2013) • Profit before tax (PBT) margin (bas
Slide 5: Section I: Financial Results
PRIVATE & CONFIDENTIAL. NOT FOR EXTERNAL CIRCULATION. CO. REG. NO. R200007899C Section I: Financial Results PRIVATE & CONFIDENTIAL. NOT FOR EXTERNAL CIRCULATION. CO. REG. NO. R200007899C Page 5
Slide 6: Key highlights (FY2014 & 4Q2014)
Key highlights (FY2014 & 4Q2014)# FY2013 FY2014 YoY (%) 4Q2013 4Q2014 YoY (%) Net revenue 31.58 36.68 +16.1 8.08 9.36 +15.9 (S$ million) Net profit 8.47 8.56 +1.1 2.88 0.95 -67.0 (S$ million) EPS (cents) 4.19 4.12 -1.7 1.42 0.43 -69.7 Adjusted net profit 7.86 10.51 +33.7 2.26 2.90 +28.3 (S$ million)
Slide 7: Financial Results (FY2014 vs FY2013)
Financial Results (FY2014 vs FY2013) YoY FY2013¹ FY2014¹ YoY FY2013 FY2014 change (excluding (excluding change¹ S$ (Million) (%) one-off gain) IPO expenses) (%) Revenue 69.47 78.35 +12.8 69.47 78.35 +12.8 Net revenue 31.58 36.68 +16.1 31.58 36.68 +16.1 Other income 0.16 0.24 +43.9 0.16 0.24 +43.9 Ga
Slide 8: Financial Results (4Q2014 vs 4Q2013)
Financial Results (4Q2014 vs 4Q2013) 4Q2013¹ 4Q2014¹ YoY YoY 4Q2013 4Q2014 change (excluding (excluding change¹ S$ (Million) (%) one-off IPO (%) gain) expenses) Revenue 16.78 19.76 +17.7 16.78 19.76 +17.7 Net revenue 8.08 9.36 +15.9 8.08 9.36 +15.9 Other income 0.09 0.03 -66.7 0.09 0.03 -66.7 Gain o
Slide 9: Key highlights (FY2011-2014)
Key highlights (FY2011-2014) FY2013¹ FY2014² FY2011 FY2012 (excluding (excluding IPO one-off gain) expenses) Net revenue (S$ million) 25.20 26.29 31.58 36.68 Net revenue (YoY change) +15.7% +4.4% +20.1% +16.1% Ased Net profit (S$ million) 2.77 3.74 7.86 10.51 Net profit (YoY change) N.M. +35.0% +110
Slide 10: Results Overview (FY2011-2014)
Results Overview (FY2011-2014) FY2013¹ FY2014² FY2011 FY2012 (excluding one- (excluding IPO S$ (Million) off gain) expenses) Revenue 61.12 56.41 69.47 78.35 Net revenue 25.20 26.29 31.58 36.68 Other income 0.06 0.08 0.16 0.24 Expenses 22.81 22.40 23.58 26.14 Net finance income -0.08 -0.03 0.03 0.10
Slide 11: PBT margin (based on net revenue)
PBT margin (based on net revenue) 35% 29.6%² 30% 27.9% 25% 20% 25.9%¹ 15.0% 15% 9.4% 10% 5% 0% FY2011 FY2012 FY2013 FY2014 Notes: 1. The PBT margin (based on net revenue) was 25.9% in FY2013, if the gain of S$0.62 million from a Group Restructuring exercise in October 2013 is excluded. 2. The PBT ma
Slide 12: Financial Ratios
Financial Ratios S$ (Million) FY2011 FY2012 FY2013 FY2014 Operating 1.40 2.33 7.13 10.18 Cashflows Capital 1.71 0.21 1.57 2.34 Expenditures S$ (Million) 31 Dec 2011 31 Dec 2012 31 Dec 2013 31 Dec 2014 Net Current 21.92 20.95 20.70 63.16 Assets S$ (Million) 31 Dec 2011 31 Dec 2012 31 Dec 2013 31 Dec
Slide 13: Cash position
Cash position As at 31 Dec 2013 As at 31 Dec 2014 (S$ million) (S$ million) Cash and cash equivalents 16.72 35.39 Other investments¹ 2.01 22.02 Total cash and other investments 18.73 57.41² Notes: 1. Other investments represent investments in marketable bond funds and are classified as available-for
Slide 14: Number of issued shares
Number of issued shares As at 31 Dec 2013 As at 31 Dec 2014 Total number of issued shares 33,769,069 256,225,334¹ Notes: 1. The Group's total number of issued shares as at 31 December 2014 do not include the issuance of 3,280,000 new shares on 6 January 2015, following the exercise of over- allotmen
Slide 15: Our Consolidated Financial Position as at Dec 2014
Our Consolidated Financial Position as at 31 Dec 2014 S$’000 NON-CURRENT ASSETS Fixed Assets 1,857 Intangible Assets 1,792 Associate 386 Others 33 4,068 CURRENT ASSETS Trade & other receivables 18,856 Prepayments & others 757 Other Investments 22,024 Cash & cash equivalents 35,388 77,025 TOTAL ASSET
Slide 16: Our Consolidated Financial Position as at Dec 2014 – cont'd
Our Consolidated Financial Position as at 31 Dec 2014 – cont’d S$’000 CURRENT LIABILITIES Trade & other payables 13,863 13,863 NON-CURRENT LIABILITIES Deferred Tax 207 Other Payables 118 325 EQUITY Share Capital 58,342 Accumulated profits 12,466 Other reserves (3,903) EQUITY ATTRIBUTABLE TO OWNERS O
Slide 17: Dividend Policy
Dividend Policy • Our Directors proposed a final dividend for FY2014 based on 60% of our net profits (excluding exceptional items) for the fourth quarter of FY2014, amounting to 0.68 cents per ordinary share Final dividend for FY2014 - Schedule 16 April 2015 Ex-dividend date 30 April 2015 Payment da
Slide 18: Section II: Performance Trends
PRIVATE & CONFIDENTIAL. NOT FOR EXTERNAL CIRCULATION. CO. REG. NO. R200007899C Section II: Performance Trends PRIVATE & CONFIDENTIAL. NOT FOR EXTERNAL CIRCULATION. CO. REG. NO. R200007899C Page 18
Slide 19: Group AUA
Group AUA S$ million AUA (as at 31 December 2014): S$5.36 billion $6,000 $5,000 $4,000 $3,000 $2,000 $1,000 B2B: 74.8% and B2C: 25.2% $- B2B B2C PRIVATE & CONFIDENTIAL. NOT FOR EXTERNAL CIRCULATION. CO. REG. NO. R200007899C Page 19
Slide 20: Group AUA Trends
Group AUA Trends Singapore: 74.9% Hong Kong: 21.2% Malaysia: 3.9% • AUA grew 16.0% YoY to S$5.36 billion in FY2014 (as at 31 December 2014) • AUA grew at a 10-year CAGR of 24.6% in FY2014 (as at 31 December 2014) • AUA between the B2B and B2C segments grew 16.0% and 15.9% YoY respectively in FY2014
Slide 21: Net sales & subscription ex-switching
Net sales & subscription ex-switching S$ million Net sales S$ million Subscription ex-switching 600 1800 1600 1,547 501 500 458 1,365 1400 400 1200 1000 947 940 300 800 193 200 600 400 100 55 200 0 0 2011 2012 2013 2014 2011 2012 2013 2014 PRIVATE & CONFIDENTIAL. NOT FOR EXTERNAL CIRCULATION. CO. RE
Slide 22: 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 S$ million FY2011-2014 was 81.8% 40 36.7 35 31.6 28.8 30 26.3 25.3 25.2 25 21.8 20 15.9 15 12.8 10 6.9 4.3 5 0 2004 2005 2006 2007 2008 2009 20
Slide 23: Net revenue as a ratio of average AUA
Net revenue as a ratio of average AUA 0.800% 0.700% 0.144% 0.101% 0.134% 0.600% 0.125% 0.500% 0.400% 0.300% 0.571% 0.574% 0.591% 0.526% 0.200% 0.100% 0.000% FY2011 FY2012 FY2013 FY2014 Recurring net revenue / AUA Non-recurring net revenue / AUA PRIVATE & CONFIDENTIAL. NOT FOR EXTERNAL CIRCULATION. C
Slide 24: Net revenue and operating expenses as a ratio of average AUA
Net revenue and operating expenses as a ratio of average AUA 0.800% 0.735% 0.708% 0.700% 0.651% 0.672% 0.588% 0.591% 0.600% 0.571% 0.573% 0.574% 0.526% 0.529% 0.524% 0.500% 0.400% 0.300% 0.200% 0.100% 0.000% FY2011 FY2012 FY2013 FY2014 Net revenue / AUA Net recurring revenue / AUA Operating expenses
Slide 25: Recurring and Non-recurring Net Revenue
Recurring and Non-recurring Net Revenue S$ (Million) FY2011 FY2012 FY2013 FY2014 Recurring net revenue 20.38 22.34 25.62 29.48 Non-recurring net revenue 4.82 3.95 5.96 7.20 Total net revenue 25.20 26.29 31.58 36.68 YoY Change (%) FY2011 FY2012 FY2013 FY2014 Recurring net revenue +18.6 +9.6 +14.7 +15
Slide 26: Net Revenue – Geographical Segment
Net Revenue – Geographical Segment S$ (Million) FY2011 FY2012 FY2013 FY2014 Singapore 21.15 21.33 24.10 25.72 Hong Kong 3.65 4.39 6.50 9.48 Malaysia 0.40 0.57 0.98 1.48 Group 25.20 26.29 31.58 36.68 YoY Change (%) FY2011 FY2012 FY2013 FY2014 Singapore +13.0 +0.9 +13.0 +6.7 Hong Kong +27.6 +20.3 +48.
Slide 27: Net Revenue – Business Segment
Net Revenue – Business Segment B2B Net Revenue (S$ Million) FY2011 FY2012 FY2013 FY2014 Recurring net revenue 14.10 16.03 18.16 21.09 Non-recurring net revenue 2.68 2.11 3.06 4.46 Total B2B net revenue 16.78 18.14 21.22 25.55 YoY Change (%) Recurring net revenue +20.2 +13.7 +13.3 +16.1 Non-recurring
Slide 28: Profit/Loss – Geographical segment
Profit/Loss – Geographical segment Profit/Loss After Tax from Continuing Operations (S$ Million) FY2011 FY2012 FY2013 FY2014 Singapore 5.53 5.64 7.81¹ 8.99² Hong Kong (1.97) (1.19) 0.40 2.10 Malaysia (1.44) (1.19) (0.59) (0.09) China - - - (0.52) Group 2.12 3.26 7.62 10.48 Notes: 1. Excluding a one-
Slide 29: Plans and outlook in FY2015
Plans and outlook in FY2015 1. Growing our capabilities as an investment platform 2. Preparations for China 3. Industry developments in Hong Kong in FY2015 4. Budgeted capital expenditure in FY2015 PRIVATE & CONFIDENTIAL. NOT FOR EXTERNAL CIRCULATION. CO. REG. NO. R200007899C Page 29
Slide 30: 1. Growing Our Capabilities As An Investment Platform
1. Growing Our Capabilities As An Investment Platform • It is important that we continually upgrade the range of products and services that we provide as an investment platform. This is to ensure that we can remain a leader in our industry • As we do so, we will be able to cater to a broader group o
Slide 31: Online Discretionary Portfolio Management Service
Online Discretionary Portfolio Management Service • Subject to regulatory approvals, we are planning to launch an Online Discretionary Portfolio Management (Online DPMS) service, starting with Hong Kong • For the B2C channel, an Online DPMS will allow us to cater to DIY (do- it-yourselves) investors
Slide 32: Bondsupermart
Bondsupermart • Today, the average consumer does not know where to find comprehensive information on bonds. As a result, the level of penetration of bonds in the retail market is limited • We see an opportunity today in the bonds market in many different Asian countries • We are therefore looking to
Slide 33: 2. Preparations For China
2. Preparations For China • Currently we have a small office in Shenzhen • We have been developing our IT system for our China business • We have been in discussions with possible business partners in China • We are targeting to launch our China business in 2H2015 • Meaningful revenue contribution s
Slide 34: 3. Industry developments in Hong Kong in FY2015
3. Industry developments in Hong Kong in FY2015 1. Capital Investment Entrant Scheme (CIES) suspension¹ - From 15 Jan 2015, foreign nationals (including those from China) will no longer be able to invest via the CIES into investment products which we distribute (including unit trusts and bonds) to q
Slide 35: 4. Budgeted capital expenditure in FY2015
4. Budgeted capital expenditure in FY2015 • We expect our Group’s budgeted capital expenditure to be about S$6 million in FY2015 • This capital expenditure includes the spending for – Our IT infrastructure – The development of new products and services in our existing markets – The development of ou
Slide 36: Section III: Appendices
PRIVATE & CONFIDENTIAL. NOT FOR EXTERNAL CIRCULATION. CO. REG. NO. R200007899C Section III: Appendices PRIVATE & CONFIDENTIAL. NOT FOR EXTERNAL CIRCULATION. CO. REG. NO. R200007899C Page 36
Slide 37: Business Overview
Business Overview • We are an Internet-based investment products distribution platform with assets under administration (AUA) of S$5.36 billion as at 31 December 2014 (stock code: AIY) • Two main business divisions: – Business-to-Consumer (B2C) website, Fundsupermart.com, targeted at DIY investors (
Slide 38: Group Structure
Group Structure PRIVATE & CONFIDENTIAL. NOT FOR EXTERNAL CIRCULATION. CO. REG. NO. R200007899C Page 38
Slide 39: Business Model
Business Model PRIVATE & CONFIDENTIAL. NOT FOR EXTERNAL CIRCULATION. CO. REG. NO. R200007899C Page 39
Slide 40: AUA-driven Business Model
AUA-driven Business Model • When B2C customers and B2B adviser-assisted investors transact in investment products, the value of their investments is termed AUA Non-recurring Recurring revenue (based on AUA) revenue Platform Fees Wrap Fees Upfront Commissions Trailer Fees (from B2B and B2C (from B2B
Slide 41: Investment Case
Investment Case An Established and Leading Investment Products Distribution Platform Scalable Business Model Revenue Growth driven by Recurring Revenue which is based on Assets under Administration (“AUA”) Continued Growth of Investment Platforms in Asia ex-Japan PRIVATE & CONFIDENTIAL. NOT FOR EXTE
Slide 42: Scalability of our Business Model
Scalability of our Business Model Scalable IT and Operational Systems Proprietary platform Wide Reach Can be customised to Distribution Network scale with growing and Sales Force Leverages on the AUA without Internet significant increases 150 financial advisory to operating costs firms and f
Slide 43: Our Milestones
Our Milestones 2002 2008 2014 Launch of Launch of Incorporation of iFAST iFAST Platform Services iFAST Platform Services Platform Services (Shenzhen) (B2B) in Singapore (B2B) in Hong Kong Qianhai in China 2007 2014 Launch of Listing on SGX-ST Fundsupermart.com Mainboard 2000 (B2C) in Hong Kong Launc
Slide 44: Our Value Proposition
Our Value Proposition B2B Financial Advisers • One platform, multiple investment products • Adoption of recurring revenue business model Suppliers based on Assets Under Administration (“AUA”) • Platform performs efficient collection of fees • One platform, multiple B2B and • Backroom functions manag
Slide 45: Fees Illustration
Fees Illustration B2B Financial Advisers • Upfront Adviser- Commissions assisted Suppliers • Wrap Fees Investors • Platform Fees • Trailer Fees • Upfront B2C Commissions Investors • Platform Fees PRIVATE & CONFIDENTIAL. NOT FOR EXTERNAL CIRCULATION. CO. REG. NO. R200007899C Page 45
Slide 46: iFAST Platform Services (B2B)
iFAST Platform Services (B2B) PRIVATE & CONFIDENTIAL. NOT FOR EXTERNAL CIRCULATION. CO. REG. NO. R200007899C Page 46
Slide 47: Fundsupermart.com (B2C)
Fundsupermart.com (B2C) PRIVATE & CONFIDENTIAL. NOT FOR EXTERNAL CIRCULATION. CO. REG. NO. R200007899C Page 47
Slide 48: Our Mobile Applications
Our Mobile Applications PRIVATE & CONFIDENTIAL. NOT FOR EXTERNAL CIRCULATION. CO. REG. NO. R200007899C Page 48
Slide 49: Thank you.
Thank you. For more information, please visit www.ifastcorp.com PRIVATE & CONFIDENTIAL. NOT FOR EXTERNAL CIRCULATION. CO. REG. NO. R200007899C Page 49