Slide 1: iFAST Corporation Ltd.
PRIVATE & CONFIDENTIAL. NOT FOR EXTERNAL CIRCULATION. CO. REG. NO. R200007899C iFAST Corporation Ltd. PRESENTATION DATED 10 DECEMBER 2014 PRIVATE & CONFIDENTIAL. NOT FOR EXTERNAL CIRCULATION. CO. REG. NO. R200007899C iFAST Corporation Ltd. Page 1
Slide 2: Disclaimer
Disclaimer The information contained in this presentation is for information purposes only, and does not constitute or form part of any offer or invitation to sell or the solicitation of an offer or invitation to purchase or subscribe for, or any offer to underwrite or otherwise acquire any securiti
Slide 3: Transaction Summary
Transaction Summary Issuer iFAST Corporation Ltd. (“iFAST”) Type of Offering Initial public offering (“IPO”) of shares Listing Primary listing on the Mainboard of the Singapore Exchange Cornerstone tranche: 19.0 million new shares (approx. 7.4% of post-‐IPO share capital) Offer Structure IPO tranch
Slide 4: Transaction Summary
Transaction Summary FIL Investment Management (Hong Kong) Limited Cornerstone Investors OWW Investments III Limited 21 November 2014: Lodgement of preliminary prospectus with the MAS Timing 4 December 2014: Registration of Zinal prospectus with the MAS 11 December 2014: Listing Joint Issue Managers,
Slide 5: Why invest in iFAST?
Why invest in iFAST? 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 F
Slide 6: Financial highlights
Financial highlights FY2011 FY2012 FY2013 9M2013 9M2014 Net revenue (S$ million) 25.20 26.29 31.58 23.51 27.33 Net revenue (YoY change) +15.7% +4.4% +20.1% N.A. +16.2% Ased Net profit (S$ million) 2.77 3.74 8.47 5.59 7.61 Net profit (YoY change) N.M. +35.0% +126.5% N.A. +36.1% PBT margin 9.4% 15.0% 27
Slide 7: Table of Content
Table of Content Section Title I Overview of Our Group II Investment Highlights Established and Leading Distribution Platform Scalable Business Model Revenue Growth driven by AUA Continued Market Growth in Asia ex-Japan Backed by: Experienced Management Team Strong Financial Performance
Slide 8: Section I: Overview of Our Group
PRIVATE & CONFIDENTIAL. NOT FOR EXTERNAL CIRCULATION. CO. REG. NO. R200007899C Section I: Overview of Our Group PRIVATE & CONFIDENTIAL. NOT FOR EXTERNAL CIRCULATION. CO. REG. NO. R200007899C iFAST Corporation Ltd. Page 8
Slide 9: Overview
Overview • We are an Internet-‐based investment products distribution platform with assets under administration (AUA) of S$5.13 billion as at 30 September 2014 • Two main business divisions: – Business-‐to-‐Consumer (B2C) website, Fundsupermart.com, targeted at DIY investors (AUA of S$1.32 billio
Slide 10: Our Milestones
Our Milestones 2002 2008 2014 Launch of ! Launch of ! Incorporation of iFAST iFAST Platform Services iFAST Platform Services Platform Services (Shenzhen) in Singapore in Hong Kong Qianhai in China 2007 Launch of ! Fundsupermart.com ! 2000 in Hong Kong Launch of ! Fundsupermart.com ! 2008 in Singapor
Slide 11: Our Business Model
Our Business Model PRIVATE & CONFIDENTIAL. NOT FOR EXTERNAL CIRCULATION. CO. REG. NO. R200007899C iFAST Corporation Ltd. Page 11
Slide 12: 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 efZicient collection of fees • One platform, multiple B2B and • Backroom functions manag
Slide 13: 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 iFAST Corporation Ltd.
Slide 14: Section II: Investment Highlights
PRIVATE & CONFIDENTIAL. NOT FOR EXTERNAL CIRCULATION. CO. REG. NO. R200007899C Section II: Investment Highlights PRIVATE & CONFIDENTIAL. NOT FOR EXTERNAL CIRCULATION. CO. REG. NO. R200007899C iFAST Corporation Ltd. Page 14
Slide 15: Our Investment Highlights
Our Investment Highlights Established and Revenue Con>nued Leading Scalable Growth driven Market Growth Distribu>on Business Model by AUA in Asia ex-‐Japan Pla@orm Experienced Strong Financial Future Growth Management Performance Plans Team PRIVATE & CONFIDENTIAL. NOT FOR EXTERNAL CIRCULATION. CO.
Slide 16: Established and Leading Distribution Platform
PRIVATE & CONFIDENTIAL. NOT FOR EXTERNAL CIRCULATION. CO. REG. NO. R200007899C Established and Leading Distribution Platform PRIVATE & CONFIDENTIAL. NOT FOR EXTERNAL CIRCULATION. CO. REG. NO. R200007899C iFAST Corporation Ltd. Page 16
Slide 17: An Established and Leading Investment Products Distribution Platform
An Established and Leading Investment Products Distribution Platform • Leading pla]orm among independent financial advisers and the online channel (DIY investors) in Singapore1 Growing • Established B2B and B2C pla]orm in Singapore, Hong Kong Geographical and Malaysia, and sebng up in China Footprint
Slide 18: Awards and Recognitions
Awards and Recognitions Nov 2008: iFAST CorporaUon was 2nd at the Enterprise 50 Nov 2013: At the Awards 2008, Benchmark Wealth (jointly Dec 2010: iFAST (HK) Management Awards 2013, organised by received the “Best-‐in-‐Class” iFAST HK was named KPMG and The award in the Advisers “Outstanding Achiev
Slide 19: Awards (Technology-related)
Awards (Technology-‐related) Aug 2009: Dec 2011: Jan 2014: Our Fundsupermart.com Fundsupermart.com (HK) Company was (HK) won the “Online received the “Best-‐in-‐ awarded a Silver Usability” award at Class” award in the “Best award in the “Most The Best PracUce in Online Usability” at the Informa>
Slide 20: Scalable Business Model
PRIVATE & CONFIDENTIAL. NOT FOR EXTERNAL CIRCULATION. CO. REG. NO. R200007899C Scalable Business Model PRIVATE & CONFIDENTIAL. NOT FOR EXTERNAL CIRCULATION. CO. REG. NO. R200007899C iFAST Corporation Ltd. Page 20
Slide 21: Scalability of our Business Model
Scalability of our Business Model ue , R O E e ve n s and t R r g in our Ne ofit Ma Grow se our Pr Scalable IT and a Incre Opera>onal Systems Proprietary pla]orm Wide Reach Can be customised and upgraded to scale with Distribu>on Network Leverages on the growing AUA without and Sales Force Inte
Slide 22: Our Proprietary IT System
Our Proprietary IT System Having a proprietary platform has Minimised our reliance on 3rd party developers Reduced our operating costs Given us the Zlexibility to innovate and scale our business New initiatives are launched quickly and reliably Our proprietary IT system can deliver reliable,
Slide 23: Revenue Growth driven by Recurring Revenue on AUA
PRIVATE & CONFIDENTIAL. NOT FOR EXTERNAL CIRCULATION. CO. REG. NO. R200007899C Revenue Growth driven by Recurring Revenue on AUA PRIVATE & CONFIDENTIAL. NOT FOR EXTERNAL CIRCULATION. CO. REG. NO. R200007899C iFAST Corporation Ltd. Page 23
Slide 24: AUA-driven Business Model
AUA-‐driven Business Model • When B2C customers and adviser-‐assisted investors transact in investment products, the value of their investments is termed AUA Recurring revenue (based on AUA) Non-‐recurring revenue Platform Fees Wrap Fees Upfront Commissions Trailer Fees (from B2B and B2C (from B2
Slide 25: Increasing Contribution from Recurring Revenue
Increasing Contribution from Recurring Revenue • Average contribution of recurring revenue to net revenue for the period 2004-‐2007: 34.2% S$ million • Average contribution of recurring revenue to net revenue (2011-‐9M2014 period): 81.6% 35 31.6 28.8 30 26.3 27.3 25.3 25.2 25 21.8 20 15.9 15 12.8
Slide 26: Growth in Group AUA
Growth in Group AUA Singapore: 75.5% Hong Kong: 20.5% Malaysia: 4.0% S$ million AUA (end-‐Sep 2014): S$5.13 billion 5,000 4,000 3,000 2,000 1,000 B2B: 74.3% B2C: 25.7% -‐ Dec-‐00 Jul-‐05 Jun-‐06 Dec-‐11 Nov-‐01 Oct-‐02 Sep-‐03 May-‐07 Apr-‐08 Mar-‐09 Feb-‐10 Jan-‐11 Nov-‐12 Oct-‐13 S
Slide 27: Continued Market Growth in Asia ex-Japan
PRIVATE & CONFIDENTIAL. NOT FOR EXTERNAL CIRCULATION. CO. REG. NO. R200007899C Continued Market Growth in Asia ex-‐Japan PRIVATE & CONFIDENTIAL. NOT FOR EXTERNAL CIRCULATION. CO. REG. NO. R200007899C iFAST Corporation Ltd. Page 27
Slide 28: Continued Growth of Platforms in Asia ex-Japan
Continued Growth of Platforms in Asia ex-‐Japan Penetration of investment platforms in Australia Market share of sales from and the UK is far higher than in Asia ex-‐Japan: investment pla@orms • UK: New business (gross sales) from FAs via platforms stood at 80% by end 2013 80% 80% 74% • Australia:
Slide 29: Experienced and Committed Management Team
PRIVATE & CONFIDENTIAL. NOT FOR EXTERNAL CIRCULATION. CO. REG. NO. R200007899C Experienced and Committed Management Team PRIVATE & CONFIDENTIAL. NOT FOR EXTERNAL CIRCULATION. CO. REG. NO. R200007899C iFAST Corporation Ltd. Page 29
Slide 30: Our Experienced and Committed Key Management Team
Our Experienced and Committed Key Management Team • Our experienced and committed key management team Our operations are led by our co-‐founder, Chairman and CEO, Mr. Lim Chung Chun (in photo), and our Group COO, Mr. Wong Soon Shyan, who each have more than 20 years of working experience in the inv
Slide 31: Management Team
Management Team Board of Directors Independent Non-‐Execu>ve • Mamhias Yao (Lead) • Low Huan Ping • Ling Peng Meng • Lim Wee Kian • Kok Chee Wai Chairman & CEO • Peter Ng Lim Chung Chun Group COO CFO GM, B2C Wong Soon Shyan David Leung Wong Sui Jau GM, B2B Lim Wee Kiong COO, Hong Kong Kelvin Yip MD
Slide 32: Strong Financial Performance
PRIVATE & CONFIDENTIAL. NOT FOR EXTERNAL CIRCULATION. CO. REG. NO. R200007899C Strong Financial Performance PRIVATE & CONFIDENTIAL. NOT FOR EXTERNAL CIRCULATION. CO. REG. NO. R200007899C iFAST Corporation Ltd. Page 32
Slide 33: Recurring and Non-recurring Net Revenue
Recurring and Non-‐recurring Net Revenue S$ (Million) FY2011 FY2012 FY2013 9M2014 Recurring net revenue 20.38 22.34 25.62 21.76 Non-‐recurring net revenue 4.82 3.95 5.96 5.57 Total net revenue 25.20 26.29 31.58 27.33 YoY Change FY2011 FY2012 FY2013 9M2014 Recurring net revenue 18.6% 9.6% 14.7% 15.
Slide 34: Geographical Segment Performance
Geographical Segment Performance Profit/Loss Ager Tax from Con>nuing Opera>ons S$ (Million) FY2011 FY2012 FY2013 9M2013 9M2014 Singapore 5.53 5.64 8.43¹ 5.65 6.45 Hong Kong (1.97) (1.19) 0.40 0.24 1.59 Malaysia (1.44) (1.19) (0.59) (0.49) (0.08) China -‐ -‐ -‐ -‐ (0.38) Group Note: 2.12 3.26 8.24
Slide 35: Net Revenue as a Ratio of Average AUA
Net Revenue as a Ratio of Average AUA 0.800% 0.745%1 0.708% 0.700% 0.651% 0.672% 0.152% 0.134% 0.600% 0.125% 0.101% 0.500% 0.400% 0.300% 0.526% 0.571% 0.574% 0.593% 0.200% 0.100% 0.000% FY2011 FY2012 FY2013 9M2014 Recurring net revenue / AUA Non-‐recurring net revenue / AUA Note: 1. The ratio for 9
Slide 36: PBT Margin (based on Net Revenue)
PBT Margin (based on Net Revenue) 35% 29.1% 30% 27.9% 25% 20% 15.0% 15% 25.9% 9.4% 10% 5% 0% FY2011 FY2012 FY2013 9M2014 Note: • The PBT Margin (based on net revenue) was 25.9% in FY2013, if the gain of S$0.62 million from the Group Restructuring exercise in October 2013 was excluded. PRIVATE & CONF
Slide 37: Net Revenue and Operating Expenses as a Ratio of Average AUA
Net Revenue and Operating Expenses as a Ratio of Average AUA 0.800% 0.745% 0.708% 0.700% 0.672% 0.651% 0.588% 0.573% 0.593% 0.600% 0.571% 0.574% 0.526% 0.529% 0.536% 0.500% 0.400% 0.300% 0.200% 0.100% 0.000% FY2011 FY2012 FY2013 9M2014 Net revenue/Average AUA Recurring net revenue/Average AUA OperaU
Slide 38: Dividend Policy
Dividend Policy S$ (Million) FY2011 FY2012 FY2013 9M2014 Dividend per Share (cents) 0.44 0.54 1.981 4.702 Notes: 1. Excluding an interim dividend by way of a distribution in specie during FY2013. 2. Includes interim dividends of approximately S$1.9 million and S$6.8 million declared on 1 August 2014
Slide 39: Future Growth Plans
PRIVATE & CONFIDENTIAL. NOT FOR EXTERNAL CIRCULATION. CO. REG. NO. R200007899C Future Growth Plans PRIVATE & CONFIDENTIAL. NOT FOR EXTERNAL CIRCULATION. CO. REG. NO. R200007899C iFAST Corporation Ltd. Page 39
Slide 40: Future Plans
Future Plans Increasing our Product and Services Expansion in the Chinese Market Capabili>es • Including more investment products such • Offshore and onshore opportunity: as ETFs, bonds, and eventually shares and There are substanUal opportuniUes for securiUes us to tap into China-‐based investors t
Slide 41: Future Plans
Future Plans Mergers and Acquisi>ons • Related businesses with sizeable AUA and customer base that can enhance our exisUng investment pla]orm business. • Exploring the possibili>es of entering new markets in the Asia-‐Pacific region through acquisiUons, joint ventures and/or strategic partnerships.
Slide 42: 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 iFAST Corporation Ltd. Page 42
Slide 43: iFAST Platform Services (B2B Business)
iFAST Platform Services (B2B Business) PRIVATE & CONFIDENTIAL. NOT FOR EXTERNAL CIRCULATION. CO. REG. NO. R200007899C iFAST Corporation Ltd. Page 43
Slide 44: Fundsupermart.com (B2C Business)
Fundsupermart.com (B2C Business) PRIVATE & CONFIDENTIAL. NOT FOR EXTERNAL CIRCULATION. CO. REG. NO. R200007899C iFAST Corporation Ltd. Page 44
Slide 45: iFAST Global Prestige
iFAST Global Prestige PRIVATE & CONFIDENTIAL. NOT FOR EXTERNAL CIRCULATION. CO. REG. NO. R200007899C iFAST Corporation Ltd. Page 45
Slide 46: iFAST Pensions
iFAST Pensions PRIVATE & CONFIDENTIAL. NOT FOR EXTERNAL CIRCULATION. CO. REG. NO. R200007899C iFAST Corporation Ltd. Page 46
Slide 47: Our Mobile Applications
Our Mobile Applications PRIVATE & CONFIDENTIAL. NOT FOR EXTERNAL CIRCULATION. CO. REG. NO. R200007899C iFAST Corporation Ltd. Page 47
Slide 48: Regulators and Regulatory Licences
Regulators and Regulatory Licences Singapore: iFAST Financial Pte Ltd • Licensed by the Monetary Authority of Singapore, holding the Capital Markets Services Licence and the Financial Advisers Licence. • CPF-‐registered Investment Administrator. Hong Kong • iFAST Financial (HK) Ltd: Licensed by Sec
Slide 49: Regulatory Compliance
Regulatory Compliance • As part of our efforts to ensure that our Group complies with both regulatory and licensing matters, we have a compliance team in Singapore, Hong Kong and Malaysia. • The work of the compliance team can be broadly categorised as (a) advising business units on regulatory requi
Slide 50: Group Structure
Group Structure PRIVATE & CONFIDENTIAL. NOT FOR EXTERNAL CIRCULATION. CO. REG. NO. R200007899C iFAST Corporation Ltd. Page 50
Slide 51: Shareholding Information
Shareholding Information Shareholders Pre-‐IPO Post-‐IPO Number of Number of Shareholding (%) Shareholding (%) Shares Shares Mr. Lim Chung Chun1 58,102,344 28.42% 58,102,344 22.7% Directors of iFAST 31,612,722 15.46% 31,812,722 12.4% SPH AsiaOne Ltd² 40,680,642 19.90% 40,680,642 15.9% Other shareh
Slide 52: Management Reporting Structure
Management Reporting Structure Board of Directors Chairman & CEO Group COO General General Managing General HK B2B CFO Manager, Manager, Director, Head / HK Manager, B2B B2C iFAST iFAST B2C Head China Singapore Singapore Malaysia Compliance, COO, Legal, IT and iFAST HK OperaUons Notes: 1. The intern
Slide 53: Our Board of Directors
Our Board of Directors Mamhias Yao Ling Peng Meng Kok Chee Wai • Lead Independent Director • Independent Director • Independent Director • Appointed to our Board on • Appointed to our Board • Appointed to our Board 1 January 2014. on 10 March 2006. on 1 January 2014 • Member of the HDB Board • Manag
Slide 54: Our Board of Directors – cont'd
Our Board of Directors – cont’d Peter Ng Low Huan Ping Lim Wee Kian • Independent Director • Non-‐Execu>ve Director • Non-‐Execu>ve Director • Appointed to our Board on 1 • Appointed to our Board on • Appointed to our Board on January 2014. 30 June 2005. Mr. Low is the 28 April 2004. • Managing Di
Slide 55: Our Executive Officers
Our Executive OfZicers Wong Soon Shyan David Leung Lim Wee Kiong Chief Opera>ng Officer Chief Financial Officer General Manager • Joined iFAST in 2000. • Joined iFAST in August 2006. • Joined iFAST in April 2001. • As Group COO, he is • Responsible for our Group’s • Responsible for the overall responsib
Slide 56: Our Executive Officers – cont'd
Our Executive OfZicers – cont’d Wong Sui Jau Kelvin Yip Dennis Tan General Manager Chief Opera>ng Officer, Hong Kong Managing Director, Malaysia • Joined iFAST in October 2000. • Joined iFAST in 2006. • Joined iFAST in 2002. • Responsible for the overall • He has been COO, HK, since • With over 10 yea
Slide 57: Results of our Group
Results of our Group S$ (Million) FY2011 FY2012 FY2013 9M2013 9M2014 Revenue 61.12 56.41 69.47 52.69 58.59 Net revenue 25.20 26.29 31.58 23.51 27.33 Other income 0.06 0.08 0.16 0.07 0.21 Gain on distribuUon to owners of -‐ -‐ 0.62 -‐ -‐ the Company Expenses 22.81 22.40 23.58 17.65 19.65 Finance
Slide 58: Our Consolidated Financial Position as at 30 Sep 2014
Our Consolidated Financial Position as at 30 Sep 2014 S$’000 NON-‐CURRENT ASSETS Fixed Assets 1,727 Intangible Assets 1,339 Associate 401 Other Investments 1,802 Others 33 5,302 CURRENT ASSETS Trade & other receivables 18,467 Cash & cash equivalents 15,185 33,652 TOTAL ASSETS 38,954 HELD UNDER TRUS
Slide 59: Our Consolidated Financial Position as at 30 Sep 2014 – cont'd
Our Consolidated Financial Position as at 30 Sep 2014 – cont’d S$’000 CURRENT LIABILITIES Trade & other payables 19,911 19,911 NON-‐CURRENT LIABILITIES Deferred Tax 125 Other Payables 177 302 EQUITY Share Capital 11,379 Accumulated profits 11,516 Other reserves (4,154) EQUITY ATTRIBUTABLE TO OWNERS
Slide 60: Net Revenue – B2B and B2C
Net Revenue – B2B and B2C B2B Net Revenue S$ (Million) FY2011 FY2012 FY2013 9M2013 9M2014 Recurring Net Revenue 14.10 16.03 18.16 13.39 15.52 Non-‐recurring Net Revenue 2.68 2.11 3.06 2.31 3.46 Total B2B Net Revenue 16.78 18.14 21.22 15.70 18.98 YoY Change Recurring Net revenue +20.2% +13.7% +13.3%
Slide 61: Net Revenue – Geographical Segments
Net Revenue – Geographical Segments S$ (Million) FY2011 FY2012 FY2013 9M2013 9M2014 Singapore 21.15 21.33 24.10 18.02 19.20 Hong Kong 3.65 4.39 6.50 4.77 7.05 Malaysia 0.40 0.57 0.98 0.72 1.08 Group 25.20 26.29 31.58 23.51 27.33 YoY Change FY2011 FY2012 FY2013 9M2013 9M2014 Singapore +13.0% +0.9% +1
Slide 62: Financial Ratios
Financial Ratios S$ (Million) FY2011 FY2012 FY2013 9M2014 OperaUng Cashflows 1.40 2.33 7.13 7.14 Capital Expenditures 1.71 0.21 1.57 1.49 S$ (Million) 31 Dec 2011 31 Dec 2012 31 Dec 2013 30 Sep 2014 Net Current Assets 21.92 20.95 20.70 13.74 S$ (Million) 31 Dec 2011 31 Dec 2012 31 Dec 2013 30 Sep 201
Slide 63: Net Inflows and Subscriptions (excluding switching)
Net InZlows and Subscriptions (excluding switching) S$ million Net inflows S$ million Subscrip>on (excluding switching) 500 1,600 458 450 1,365 416 1,400 400 348 1,200 1,138 1,080 350 1,000 947 941 300 250 800 200 600 150 400 100 87 55 200 50 -‐ -‐ FY2011 FY2012 FY2013 9M2013 9M2014 2011 2012 2013