Slide 1: 2Q2016 and 1H2016 Results Presentation
2Q2016 and 1H2016 Results Presentation 29 July 2016 PRIVATE & CONFIDENTIAL. NOT FOR EXTERNAL CIRCULATION. CO. REG. NO. R200007899C 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 2Q2016 (Apr - Jun 2016) and 1H2016 (Jan – Jun 2016) results Financial ratios Financial position Interim dividend II Performance Trends Assets under Administration (AUA) Net sales and subscription excluding switching Recurring net reven
Slide 4: Key Summary
Key Summary • The Group has been making progress towards its long-term vision of being an integrated investment products distribution platform. We believe this is key to robust growth rates in the medium to long term in Asia’s wealth management industry • In the short term, however, adverse equity m
Slide 5: FSM Indices – Asia ex-Japan Index
FSM Indices – Asia ex-Japan Index¹ 2300 2200 2100 2000 1900 1800 1700 1600 Average fund performances were negatively 1500 affected as Asia ex-Japan markets hit 5-year lows in 1H2016 1400 1300 Note: 1. The FSM Indices (FSMI) Asia ex-Japan Equity Index aims to provide investors with a measurement of t
Slide 6: Key Summary
Key Summary • The Group recently launched its iFAST China business. As the China Business is at the initial investment phase, an operating loss of S$1.56 million was registered in 1H2016. Net revenue was S$0.05 million and Gross revenue was S$0.24 million • In June 2016, iFAST China completed the sa
Slide 7: Key Summary
Key Summary • The Directors believe that the Group has a strong balance sheet. Total Cash and other investments stood at S$58.08 million as at 30 June 2016 • The Directors have proposed a second interim dividend of 0.68 cents per ordinary share for 2Q2016 (2Q2015: 0.68 cents per ordinary share) • Th
Slide 8: Section I: Financial Results
PRIVATE & CONFIDENTIAL. NOT FOR EXTERNAL CIRCULATION. CO. REG. NO. R200007899C Section I: Financial Results PRIVATE & CONFIDENTIAL. NOT FOR EXTERNAL CIRCULATION. CO. REG. NO. R200007899C 8
Slide 9: Presentation of Group’s Results
Presentation of Group’s Results Presentation of Group’s results (including and excluding China) • In view of the guidance we have provided on our China operation (that the China business would be expected to have a negative impact on the Group’s overall operating profit on a consolidated basis in 20
Slide 10: Financial Results for Group (excluding China operation) (2Q2016 vs 2Q2015)
Financial Results for Group (excluding China operation) (2Q2016 vs 2Q2015) 2Q2015 2Q2016 YoY change (%) S$ (Million) Revenue 23.18 19.14 -17.4 Net revenue 11.38 9.63 -15.4 Other income 0.34 0.30 -11.6 Expenses 8.07 8.09 +0.2 Net finance income 0.21 0.20 -3.3 Share of result of associates, net of tax
Slide 11: Financial Results for Group (including China operation) (2Q2016 vs 2Q2015)
Financial Results for Group (including China operation) (2Q2016 vs 2Q2015) S$ (Million) 2Q2015 2Q2016 YoY change (%) Revenue 23.18 19.37 -16.4 Net revenue 11.38 9.68 -14.9 Other income 0.34 0.30 -11.6 Expenses 8.31 8.87 +6.7 Net finance income 0.21 0.20 -3.3 Share of result of associates, net of tax
Slide 12: Financial Results for Group (excluding China operation) (1H2016 vs 1H2015)
Financial Results for Group (excluding China operation) (1H2016 vs 1H2015) YoY • The stepped-up investments and 1H2015 1H2016 change expenses in 1H2016 coincided with S$ (Million) (%) very adverse financial market conditions (at the beginning of Revenue 44.07 37.81 -14.2 2016 and the negative market
Slide 13: Financial Results for Group (including China operation) (1H2016 vs 1H2015)
Financial Results for Group (including China operation) (1H2016 vs 1H2015) YoY • The Group recently launched its iFAST 1H2015 1H2016 change China business. As the China Business is S$ (Million) (%) at the initial investment phase, an operating loss of S$1.56 million was Revenue 44.07 38.05 -13.7 reg
Slide 14: Results Overview for Group (excluding China operation)
Results Overview for Group (excluding China operation) FY2012 FY2013¹ FY2014² FY2015 1H2016 S$ (Million) Revenue 56.41 69.47 78.35 85.34 37.81 Net revenue 26.29 31.58 36.68 41.53 18.98 Other income 0.08 0.16 0.24 1.53 1.10 Expenses 22.40 23.58 25.62 30.06 16.18 Net finance income -0.03 0.03 0.10 0.7
Slide 15: Results Overview for Group (including China operation)
Results Overview for Group (including China operation) FY2012 FY2013¹ FY2014² FY2015 1H2016 S$ (Million) Revenue 56.41 69.47 78.35 85.34 38.05 Net revenue 26.29 31.58 36.68 41.53 19.04 Other income 0.08 0.16 0.24 1.53 1.10 Expenses 22.40 23.58 26.14 31.08 17.85 Net finance income -0.03 0.03 0.10 0.8
Slide 16: PBT margin for Group (based on net revenue)
PBT margin for Group (based on net revenue) (excluding China operation) (including China operation) 35.0% 35% 2 31.5% 2 30.7% 30.0% 29.6% 30.0% 30% 1 1 25.9% 25.0% 24.1% 25% 22.4% 20.0% 20% 15.0% 15.0% 15% 14.1% 15.0% 10.0% 10% 5.0% 5% 0.0% 0% 2012 2013 2014 2015 1H2016 2012 2013 2014 2015 1H2016 No
Slide 17: Financial Ratios
Financial Ratios S$ (Million) FY2012 FY2013 FY2014 FY2015 1H2016 Operating 2.33 7.13 10.18 14.18 3.08 Cashflows Capital 0.21 1.57 2.34 5.45 2.78 Expenditure 31 Dec 31 Dec 31 Dec 31 Dec 30 June S$ (Million) 2012 2013 2014 2015 2016 Net Current 20.95 20.70 63.16 68.32 65.13 Assets 31 Dec 31 Dec 31 Dec
Slide 18: Cash position
Cash position As at 31 Dec 2015 As at 30 June 2016 (S$ million) (S$ million) Cash and cash equivalents 29.52 28.10 Other investments¹ 31.96 29.98 Total cash and other investments 61.48 58.08 Note: 1. Other investments represent investments in financial assets. PRIVATE & CONFIDENTIAL. NOT FOR EXTERNA
Slide 19: Number of issued shares
Number of issued shares As at 31 Dec 2015 As at 30 June 2016 Total number of issued shares 260,977,301 260,684,101 (excluding treasury shares) PRIVATE & CONFIDENTIAL. NOT FOR EXTERNAL CIRCULATION. CO. REG. NO. R200007899C 19
Slide 20: Our Consolidated Financial Position as at 30 June 2016
Our Consolidated Financial Position as at 30 June 2016 S$’000 NON-CURRENT ASSETS Fixed Assets 2,327 Intangible Assets 7,959 Associates 1,584 Others 344 12,214 CURRENT ASSETS Trade & other receivables 18,737 Prepayments & others 1,336 Other Investments 29,982 Cash & cash equivalents 28,097 78,152 TOT
Slide 21: Our Consolidated Financial Position as at 30 June 2016 – cont’d
Our Consolidated Financial Position as at 30 June 2016 – cont’d S$’000 CURRENT LIABILITIES Trade & other payables 12,417 Finance Lease 4 Current tax payable 602 13,023 NON-CURRENT LIABILITIES Deferred Tax 222 Finance Lease 21 243 EQUITY Share Capital 62,626 Accumulated profits 16,140 Other reserves
Slide 22: Interim Dividend
Interim Dividend Second Interim Dividend for FY2016 - Schedule Dividend per share 0.68 cents per ordinary share 4 August 2016 Ex-dividend date 19 August 2016 Payment date • The Group’s previously communicated Dividend Guidance was: “For FY2016, our Directors intend to recommend and distribute divide
Slide 23: 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 23
Slide 24: Group AUA
Group AUA S$ million AUA (as at 30 June 2016): S$5.63 billion¹ $7,000 $6,000 $5,000 $4,000 $3,000 $2,000 $1,000 $- Dec-01 Dec-02 Dec-03 Dec-04 Dec-05 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 Dec-14 Dec-15 Dec-06 Jun-01 Jun-02 Jun-03 Jun-04 Jun-05 Jun-06 Jun-07 Jun-10 Jun-11 Jun-12 Jun-13 Jun
Slide 25: Group AUA Trends
Group AUA Trends Singapore & Others: 73.3% Hong Kong: 21.1% Malaysia: 5.6% • The Group’s AUA as at 30 June 2016 includes the AUA contribution from India Business, based on its 21.47% stake in the India Business, as well as the AUA contribution from the China Business (which was soft launched in Marc
Slide 26: Net sales
Net sales S$ million S$ million Net sales Subscription ex-switching $600 $1,800 $1,670 $501 $507 $1,600 $1,547 $500 $458 $1,365 $1,400 $400 $1,200 $1,000 $940 $300 2 $800 $648 $193 $600 $200 1 $400 $95 $100 $200 $- $- 2012 2013 2014 2015 1H2016 2012 2013 2014 2015 1H2016 Notes: 1. Net sales stood at
Slide 27: Net revenue breakdown between recurring and non-recurring sources
Net revenue breakdown between recurring and non-recurring sources Average contribution from recurring net revenue as opposed to non-recurring net revenue S$ million in the period from FY2012 to 1H2016 was 83.4% 45 41.5 40 35 30 25 20 19.0 15 10 6.9 5 4.3 0 2004 2005 2006 2007 2008 2009 2010 2011 201
Slide 28: Net revenue as a ratio of average AUA
Net revenue as a ratio of average AUA 0.800% 0.700% 0.144% 0.122% 0.134% 0.090% 0.101% 0.600% 0.500% 0.400% 0.300% 0.591% 0.615% 0.600% 0.571% 0.574% 0.200% 0.100% 0.000% 2012 2013 2014 2015 1H2016 Recurring net revenue / AUA Non-recurring net revenue / AUA Note: 1. The ratio for 1H2016 has been com
Slide 29: 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% 0.735% 0.738% 0.707% 0.688% 0.700% 0.672% 0.615% 0.591% 0.598% 0.585% 0.600% 0.571% 0.572% 0.574% 0.528% 0.534% 0.513% 0.500% 0.400% 0.300% 0.200% 0.100% 0.000% 2012 2013 2014 2015 1H2016 Net re
Slide 30: 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% 0.735% 0.738% 0.707% 0.690% 0.700% 0.672% 0.647% 0.615% 0.600% 0.591% 0.600% 0.571% 0.572% 0.574% 0.552% 0.528% 0.524% 0.500% 0.400% 0.300% 0.200% 0.100% 0.000% 2012 2013 2014 2015 1H2016 Net re
Slide 31: Recurring and Non-Recurring Net Revenue
Recurring and Non-Recurring Net Revenue S$ (Million) FY2012 FY2013 FY2014 FY2015 1H2016 Recurring net revenue 22.34 25.62 29.48 34.64 16.55 Non-recurring net revenue 3.95 5.96 7.20 6.89 2.49 Total net revenue 26.29 31.58 36.68 41.53 19.04 YoY Change (%) FY2012 FY2013 FY2014 FY2015 1H2016 Recurring n
Slide 32: Net Revenue – Geographical Segment
Net Revenue – Geographical Segment S$ (Million) FY2012 FY2013 FY2014 FY2015 1H2016 Singapore 21.33 24.10 25.72 30.04 13.84 Hong Kong 4.39 6.50 9.48 9.55 4.12 Malaysia 0.57 0.98 1.48 1.94 1.02 China - - - - 0.05¹ Group 26.29 31.58 36.68 41.53 19.04 YoY Change (%) FY2012 FY2013 FY2014 FY2015 1H2016 Si
Slide 33: Net Revenue – B2B Business Segment
Net Revenue – B2B Business Segment B2B Net Revenue FY2012 FY2013 FY2014 FY2015 1H2016 (S$ Million) Recurring net revenue 16.03 18.16 21.09 24.50 11.66 Non-recurring net revenue 2.11 3.06 4.46 4.09 1.57 Total B2B net revenue 18.14 21.22 25.55 28.59 13.23 YoY Change (%) FY2012 FY2013 FY2014 FY2015 1H2
Slide 34: Net Revenue – B2C Business Segment
Net Revenue – B2C Business Segment B2C Net Revenue FY2012 FY2013 FY2014 FY2015 1H2016 (S$ Million) Recurring net revenue 6.31 7.46 8.39 10.15 4.89 Non-recurring net revenue 1.84 2.90 2.74 2.79 0.92 Total B2C net revenue 8.15 10.36 11.13 12.94 5.81 YoY Change (%) FY2012 FY2013 FY2014 FY2015 1H2016 Re
Slide 35: Profit/Loss – Geographical Segment
Profit/Loss – Geographical Segment Profit/Loss After Tax (S$ Million) FY2012 FY2013 FY2014 FY2015 1H2016 Singapore 5.64 7.81¹ 9.00² 11.21 3.85 Hong Kong (1.19) 0.40 2.10 1.65 0.08 Malaysia (1.19) (0.59) (0.09) 0.24 0.08 Others³ - - (0.01) (0.02) (0.05) Net profit (excluding China operation) 3.26 7.6
Slide 36: 1H2016 Results Summary & Outlook (Group excluding China)
1H2016 Results Summary & Outlook (Group excluding China) • The Group has been making progress towards its long-term vision of being an integrated investment products distribution platform. We believe this is key to robust growth rates in the medium to long term in Asia’s wealth management industry •
Slide 37: 1H2016 Results Summary & Outlook (Group including China)
1H2016 Results Summary & Outlook (Group including China) • The Group recently launched its iFAST China business. As the China Business is at the initial investment phase, an operating loss of S$1.56 million was registered in 1H2016. Net revenue was S$0.05 million and Gross revenue was S$0.24 million
Slide 38: 1H2016 Results & Outlook - Singapore
1H2016 Results & Outlook - Singapore • Singapore continues to be the Group’s largest contributor in terms of AUA, net revenue and net profit • Singapore’s net profit decreased 32.0% YoY to S$3.85 million in 1H2016 • Net revenue declined 9.4% YoY to S$13.84 million in 1H2016 • AUA declined 2.5% YoY t
Slide 39: 1H2016 Results & Outlook – Hong Kong
1H2016 Results & Outlook – Hong Kong • Hong Kong’s net profit decreased 92.1% YoY to S$0.08 million in 1H2016 • Net revenue was down 18.7% YoY in 1H2016 • AUA declined 8.0% YoY to S$1.19 billion in 1H2016 • The decline was mainly due to the sharp sell-down in the China/Hong Kong equity markets in th
Slide 40: 1H2016 Results & Outlook – Malaysia
1H2016 Results & Outlook – Malaysia • After breaking even in 2015, Malaysia’s profit after tax rose 690.0% YoY to S$0.08 million in 1H2016 • Net revenue increased 14.6% YoY to S$1.02 million in 1H2016 • AUA increased 32.6% YoY to S$0.32 billion in 1H2016 • In Malaysia, the significant growth of busi
Slide 41: 1H2016 Results & Outlook – China
1H2016 Results & Outlook – China • The China business was soft launched in March 2016; the China operation’s loss increased 340.1% YoY to S$1.56 million in 1H2016 • Following an agreement with an online media company in China to launch transactional capabilities for their customers to transact into
Slide 42: Stockbroking & The Platform Business
Stockbroking & The Platform Business • We have just launched our stockbroking business in Hong Kong (for B2B platform) and we are targeting to launch our stockbroking business in Singapore at the end of 2016/early 2017 • Our business model will however be different from most Asian stockbrokers • Our
Slide 43: 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 43
Slide 44: Business Overview
Business Overview • We are an Internet-based investment products distribution platform with assets under administration (AUA) of S$5.63 billion as at 30 June 2016 (stock code: AIY) • Two main business divisions: – Business-to-Consumer (B2C) website, Fundsupermart.com, targeted at DIY investors (AUA
Slide 45: 2000 – 2015 Milestones
2000 – 2015 Milestones 2000 2008 2014 Launch of • Launch of iFAST Platform • Incorporation of iFAST Platform Fundsupermart.com (B2C) Services (B2B) in Hong Kong Services (Shenzhen) Qianhai in in Singapore • Launch of Fundsupermart.com China (B2C) and iFAST Platform Services • Listing on SGX-ST Mainb
Slide 46: 1H2016 Milestones
1H2016 Milestones January March May • Completion of acquisition of a • iFAST Wealth Advisers Awards • Joint Venture With PC stockbroking company in Hong Kong 2016 held in Singapore International (HK) Limited • Annual flagship event “What & Where to incorporate PC iFAST to Invest 2016” was held in Si
Slide 47: 1H2016 Activities
1H2016 Activities (L-R) What and Where to Invest 2016 (Hong Kong); What and Where to Invest 2016 (Malaysia KL); FSM Invest Expo (Singapore); iFAST Wealth Management Academy (Hong Kong); Fund House Seminar (Hong Kong) (L-R) SCS Challenge for Children 2016 (Singapore); iWALK – Oxfam Brisbane (L-R) iFA
Slide 48: Business Model
Business Model PRIVATE & CONFIDENTIAL. NOT FOR EXTERNAL CIRCULATION. CO. REG. NO. R200007899C 48
Slide 49: Our Value Proposition
Our Value Proposition B2B FA Companies, Financial Institutions and Banks: • One platform, multiple investment products • Adoption of recurring revenue business model based on Assets Under Administration (“AUA”) Product Providers • Platform performs efficient collection of fees • IT solutions and bac
Slide 50: Fees Illustration
Fees Illustration B2B Financial Advisers • Upfront Adviser- Commissions assisted Product Providers • Wrap Fees Investors • Platform Fees • Trailer Fees (from Fund Houses) • Upfront B2C Commissions Investors • Platform Fees PRIVATE & CONFIDENTIAL. NOT FOR EXTERNAL CIRCULATION. CO. REG. NO. R200007899
Slide 51: Thank you. For more information, please visit www.ifastcorp.com
Thank you. For more information, please visit www.ifastcorp.com PRIVATE & CONFIDENTIAL. NOT FOR EXTERNAL CIRCULATION. CO. REG. NO. R200007899C 51