Slide 1: 4Q2022 & FY2022 Results Presentation
iFAST CORPORATION LTD. 4Q2022 & FY2022 Results Presentation 14 FEB 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 ▪ 4Q2022 (Oct-Dec 2022) & FY2022 Results Pg. 8 SECTION I Financial Results ▪ Financial Indicators ▪ Interim Dividends ▪ 2022: Extending The Foundation Amidst Stormy Weather Pg. 23 SECTION II Business Update ▪ Fixed Income: Bright Spot in 2022 ▪ iFAST’s 3-Year Plan ▪ AUA
Slide 4: Key Summary
Key Summary • As at 31 December 2022, the Group’s assets under administration (“AUA”) declined 8.3% YoY to S$17.42 billion. On a QoQ basis, the Group’s AUA rose 2.6%. • Net inflows of client assets remained positive in 4Q2022 and FY2022, reaching S$263 million in 4Q2022 and S$2,125 million in FY2022
Slide 5: Key Summary
Key Summary • Going forward, the Group expects to enter a period of high growth in revenue and profitability between 2023 and 2025. This is expected as the ePension division in Hong Kong starts to contribute substantially, and as the Group strives to ensure that for our core platform business, growt
Slide 6: Group AUA declined 8.3% YoY but rose 2.5% QoQ to S$17.42 billion
Group AUA declined 8.3% YoY but rose 2.5% QoQ to S$17.42 billion as at 31 Dec 2022 S$ million AUA (as at 31 Dec 2022): S$17.42 billion1 $20,000 $18,000 $16,000 $14,000 $12,000 $10,000 $8,000 $6,000 $4,000 $2,000 $- B2B B2C Note: Following the exit of onshore platform business in India, the Group’s A
Slide 7: Net Inflows & Gross Unit Trusts (UT) subscription
Net Inflows & Gross Unit Trusts (UT) subscription S$ 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 $2,125 $2,000 $4,000 $3,053 $3,000 $2,870 $1,500 $976 $1,000 $786 $2,000 $500 $1,000 $- $- 2018 2019 2
Slide 8: Financial Results
SECTION I Financial Results 8
Slide 9: Financial Results for Group (4Q2022 vs 4Q2021)
Financial Results for Group (4Q2022 vs 4Q2021) S$ (Million) 4Q2021 4Q20221 YoY change (%) Total revenue 54.732 48.53 -11.3 Total net revenue 28.412 29.76 +4.7 Other income -0.39 0.48 N.M. Operating expenses 19.65 27.79 +41.5 Share of results of associates, net of tax -0.21 -0.03 -85.4 Profit before
Slide 10: Financial Results for Group (FY2022 vs FY2021)
Financial Results for Group (FY2022 vs FY2021) S$ (Million) FY2021 FY20221 YoY change (%) Total revenue 216.902 208.87 -3.7 Total net revenue 113.912 118.24 +3.8 Other income 0.49 1.72 +250.5 Operating expenses 77.68 103.84 +33.7 Impairment loss related to an associate - -5.20 N.M. Share of results
Slide 11: Results Overview for Group
Results Overview for Group S$ (Million) FY2018 FY2019 FY2020 FY2021 FY20221 Total revenue2 122.25 126.61 170.76 216.90 208.87 Total net revenue2 60.45 65.91 86.64 113.91 118.24 Other income 1.16 2.04 5.21 0.49 1.72 Operating expenses 49.78 56.06 65.29 77.68 103.84 Interest expenses on lease liabilit
Slide 12: PBT Margin for Group
PBT Margin for Group (Based on Total Net Revenue) 35.0% 31.6% 29.6% 30.0% 25.0% 20.7% 20.0% 17.0% 15.0% 13.5% 1 10.0% 5.0% 0.0% 2018 2019 2020 2021 2022 Notes: 1. Includes the new banking operation for FY2022 and excludes impairment loss of S$5.2 million related to India Business recognised in 2Q202
Slide 13: Return on Equity
Return on Equity 30.0% 25.8% 25.0% 21.8% 20.0% 15.0% 13.1% 10.9% 10.0% 5.0%1 5.0% 0.0% 2018 2019 2020 2021 2022 2 Notes: 1. Excluding impairment loss of S$5.2 million related to India Business recognised in 2Q2022. 2. The Group conducted a S$103 million share placement exercise in January 2022. 13
Slide 14: Financial Indicators
Financial Indicators S$ (Million) FY2018 FY2019 FY2020 FY2021 FY2022 EBITA 16.44 17.49 32.98 45.01 26.773 Net Cash Position1 48.06 40.15 53.28 59.29 84.09 Operating Cash Flows 17.62 19.38 41.56 46.53 47.40 Capital Expenditure2 10.73 11.90 12.63 21.62 17.87 Net Current Assets 56.62 49.86 58.35 68.03
Slide 15: Net Cash Position
Net Cash Position As at 31 Dec 2021 As at 31 Dec 2022 (S$ million) (S$ million) Cash and Cash Equivalents 44.10 151.13 Other Investments¹ 15.19 41.71 Less: Customers’ Deposits - (96.54) Total Cash 59.29 96.30 Less: Bank Loans - (12.21) Net Cash Position 59.29 84.09 Gross Debt-to-Equity Ratio 0.00% 5
Slide 16: Group Operating Cash Flows
Group Operating Cash Flows S$ million 50.00 47.40 46.53 45.00 41.56 40.00 35.00 30.00 25.00 19.38 20.00 17.62 15.00 10.00 5.00 0.00 2018 2019 2020 2021 2022 16
Slide 17: Capital Expenditure
Capital Expenditure S$ million 25.00 21.62 21.00 2 20.00 17.87 1 15.00 12.63 11.90 10.73 10.00 5.00 0.00 2018 2019 2020 2021 2022 2023F Note: 1. Capital Expenditure forecast for 2022 was at S$22.00 million. 2. Capital Expenditure forecast for 2023 will be at S$21.00 million. 17
Slide 18: Number of issued shares
Number of issued shares As at 31 Dec 2021 As at 31 Dec 2022 Total number of issued shares (excluding treasury shares and subsidiary 276,946,913 293,045,941 holdings) 18
Slide 19: Our Consolidated Financial Position
Our Consolidated Financial Position As at 31 Dec 21 As at 31 Dec 22 S$’000 S$’000 ASSETS Plant and Equipment 7,552 5,962 Right-of-use Assets 14,198 10,391 Intangible Assets and Goodwill 32,623 73,993 Associates 6,552 3,479 Other Investments 2,919 23,034 Deferred Tax Assets 2,448 2,380 Contract Costs
Slide 20: Our Consolidated Financial Position
Our Consolidated Financial Position As at 31 Dec 21 As at 31 Dec 22 S$’000 S$’000 EQUITY Share Capital 67,577 171,059 Reserves 61,076 51,429 EQUITY ATTRIBUTABLE TO OWNERS OF THE COMPANY 128,653 222,488 Non-Controlling Interests (1,018) 8,229 TOTAL EQUITY 127,635 230,717 LIABILITIES Deferred Tax Liab
Slide 21: Held under Trust
Held under Trust As at 31 Dec 21 As at 31 Dec 22 S$’000 S$’000 HELD UNDER TRUST Client Bank Accounts 973,592 933,368 Client Ledger Balances (973,592) (933,368) - - • Certain subsidiaries in the Group receive and hold monies deposited by clients and other institutions in the course of the conduct of
Slide 22: Proposed Final Dividend for FY2022
Proposed Final Dividend for FY2022 Final Dividend for FY2022 - Schedule Dividend per share 1.40 cents per ordinary share Ex-dividend date 8 May 2023 Record date and time 9 May 2023 (5.00 pm) Payment date 19 May 2023 • For the final dividend for FY2022, the Directors proposed a dividend of 1.40 cents
Slide 23: Business Update
Section II Business Update 23
Slide 24: 2022: Extending The Foundation Amidst Stormy Weather
2022: Extending The Foundation Amidst Stormy Weather 1. Extending The Foundation Phase 1: 2015-2017. Following the listing of iFAST Corporation Ltd on the Singapore Exchange in December 2014, the Group decided that it needs to evolve from being ‘a unit trust platform’ to being ‘a wealth management p
Slide 25: Fixed Income: Bright Spot in 2022
Fixed Income: Bright Spot in 2022 S$ million 450 400 350 300 250 200 150 100 50 0 25
Slide 26: iFAST's Three-Year Plan
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 margins and re
Slide 27: Core Platform Business: Get Bigger, Better and More Profitable
Core Platform Business: Get Bigger, Better and More Profitable • Get Bigger and Better. 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. • Moderation of growth in expenses
Slide 28: HK ePension Division To Be An Important Driver Of Growth
HK ePension Division To Be An Important Driver Of Growth • Important Driver Of Revenue and Profitability. We expect our ePension Division to be an important driver of growth between 2023 to 2025. We are expecting further growth beyond 2025, though at lower growth rates. • Effective Execution Is Key.
Slide 29: 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 achi
Slide 30: iFAST Global Bank and iFAST Fintech Ecosystem
iFAST Global Bank and iFAST Fintech Ecosystem • Digital Banking and Fintech Ecosystem. We believe the potential success of a Digital Bank depends on the presence of an existing ecosystem to catalyse and support the growth of the bank’s revenue and profitability. iFAST’s Fintech Ecosystem, together w
Slide 31: iFAST Fintech Ecosystem
iFAST Fintech Ecosystem Connecting All to Help Investors Invest Globally and Profitably (as at 31 Dec 2022) Online Account Multi-Currency Opening Deposits Digital Bank Payment / Banking as a EzRemit Service (BaaS) Remittance Over 780,000 B2C Fundsupermart.com / FSMOne.com / customer accounts Bondsup
Slide 32: The iFAST Fintech Ecosystem
The iFAST Fintech Ecosystem • Products and services: ─ Unit trusts (over 11,500 funds from over 300 fund houses) ─ Bonds (over 1,850 direct bonds) ─ Stocks & ETFs – in 5 markets (Singapore, Hong Kong, US, Malaysia & China A Shares) ─ Discretionary portfolio management services • Over 600 financial i
Slide 33: 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 34: Performance Trend
SECTION III Performance Trend \ 34
Slide 35: AUA Breakdown: Markets & Products
AUA Breakdown: Markets & Products (as at 31 Dec 2022) AUA Breakdown By Markets AUA Breakdown By Products 2.8% 5.6% 11.1% 19.9% 13.5% 7.2% 67.3% 72.6% Singapore Hong Kong Unit Trusts Bonds Malaysia Others (China & UK) Stocks & ETFs Cash Account & Deposits 35
Slide 36: 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 2021 to 2022 was 70.2% 120 100 34.4 34.5 80 25.5 60 12.3 11.3 8.5 40 78.7 83.9 6.9 6.0 7.2 6.0 60.4 4.0 48.3
Slide 37: 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% 0.735% 0.731% 0.700% 0.665% 0.667% 0.139% 0.138% 0.225% 0.600% 0.629% 0.614% 0.203% 0.194% 0.586% 0.500% 0.576% 0.400% 0.456% 0.300% 0.596% 0.594% 0.533% 0.462% 0.473% 0.200% 0.181% 0.209% 0.100% 0.12
Slide 38: Profit/Loss - Geographical Segment
Profit/Loss - Geographical Segment Profit/Loss YoY Change YoY Change (S$ Million) 4Q2021 4Q2022 (%) FY2021 FY2022 (%) Singapore 6.62 3.26 -50.7 28.43 16.57 -41.7 Hong Kong 2.03 2.07 +1.9 8.39 8.07 -3.7 Malaysia 1.28 1.08 -15.5 5.39 4.25 -21.1 China (1.62) (1.83) +13.2 (5.82) (7.12) +22.4 UK - (1.91)
Slide 39: Profit/Loss - Geographical Segment
Profit/Loss - Geographical Segment Profit/Loss (S$ Million) FY2018 FY2019 FY2020 FY2021 FY2022 Singapore 11.86 9.96 21.32 28.43 16.57 Hong Kong 3.42 4.42 5.79 8.39 8.07 Malaysia 1.37 1.76 3.75 5.39 4.25 China (4.60) (4.82) (4.88) (5.82) (7.12) UK - - - - (5.04) Other1 0.52 (0.05) (0.41) (0.35) 0.30
Slide 40: Total Net Revenue - Geographical Segment
Total Net Revenue - Geographical Segment S$ (Million) FY2018 FY2019 FY2020 FY2021 FY2022 Singapore 39.88 42.35 56.79 73.50 70.49 Hong Kong 14.33 16.81 19.26 24.43 24.15 Malaysia 5.45 6.15 8.77 13.43 13.64 China 0.79 0.60 1.82 2.55 1.77 UK - - - - 8.19 Group 60.45 65.91 86.64 113.91 118.24 YoY Change
Slide 41: Recurring and Non-recurring Total Net Revenue (Include Banking Operation)
Recurring and Non-recurring Total Net Revenue (Include Banking Operation) S$ (Million) FY2018 FY2019 FY2020 FY2021 FY20221 Recurring net revenue2 49.15 53.65 61.17 79.38 83.86 Non-recurring net revenue 11.30 12.26 25.47 34.53 34.38 Total net revenue2 60.45 65.91 86.64 113.91 118.24 YoY Change (%) FY
Slide 42: Recurring and Non-recurring Total Net Revenue (Exclude Banking Operation)
Recurring and Non-recurring Total Net Revenue (Exclude Banking Operation) S$ (Million) FY2018 FY2019 FY2020 FY2021 FY20221 Recurring net revenue2 49.15 53.65 61.17 79.38 83.61 Non-recurring net revenue 11.30 12.26 25.47 34.53 26.44 Total net revenue2 60.45 65.91 86.64 113.91 110.05 YoY Change (%) FY
Slide 43: Net Revenue - B2B Business Segment
Net Revenue1 - B2B Business Segment B2B Net Revenue FY2018 FY2019 FY2020 FY2021 FY2022 (S$ Million) Recurring net revenue 33.88 37.12 42.34 55.73 58.05 Non-recurring net revenue 7.22 7.19 10.88 16.42 16.66 Total B2B net revenue 41.10 44.31 53.22 72.15 74.72 YoY Change (%) FY2018 FY2019 FY2020 FY2021
Slide 44: Net Revenue - B2C Business Segment
Net Revenue1 - B2C Business Segment B2C Net Revenue FY2018 FY2019 FY2020 FY2021 FY2022 (S$ Million) Recurring net revenue 14.44 15.81 18.04 22.96 22.99 Non-recurring net revenue 4.08 5.08 14.60 18.11 9.78 Total B2C net revenue 18.52 20.89 32.64 41.07 32.77 YoY Change (%) FY2018 FY2019 FY2020 FY2021
Slide 45: Progress of Individual Markets: Singapore
Progress of Individual Markets SINGAPORE • Net revenue for the Singapore operation was down 3.2% YoY and 2.1% QoQ to S$17.81 million in 4Q2022, while in FY2022, net revenue fell 4.1% YoY to S$70.50 million. • While AUA of the Singapore operation rose 2.6% QoQ, AUA fell by 6.9% YoY to S$12.64 billion
Slide 46: Progress of Individual Markets: Singapore
Progress of Individual Markets SINGAPORE • With bond yields still near multi-decade highs, fixed income saw another strong quarter, and was a key contributor to the division’s overall net flows. iGM clients put more idle cash to work over the quarter, utilising short tenor SGS bonds and Treasury bil
Slide 47: Progress of Individual Markets: Hong Kong
Progress of Individual Markets HONG KONG • Net revenue for the Hong Kong operation grew 1.8% YoY and 2.4% QoQ to S$6.11 million in 4Q2022, though for the FY2022, net revenue was down 1.2% YoY to S$24.15 million. • The AUA of Hong Kong operation grew 1.5% QoQ but fell 17.7% YoY to S$2.36 billion as a
Slide 48: Progress of Individual Markets: Hong Kong
Progress of Individual Markets HONG KONG • The AUA of the Hong Kong B2C division FSMOne.com fell by 0.3% QoQ and 24.8% YoY in FY2022. The decline is driven by both redemptions and drop in market value across investment products. The B2C division recorded net outflow in FY2022. • In 4Q2022, UT sales
Slide 49: Progress of Individual Markets: Malaysia
Progress of Individual Markets MALAYSIA • Net revenue for the Malaysia operation rose 0.6% YoY and 6.9% QoQ to S$6.11 million in 4Q2022, while on a YoY basis, net revenue was up 1.6% to S$13.64 million in FY2022. • The Malaysia operation AUA rose 3.2% QoQ and 6.1% YoY to S$1.94 billion as at 31 Dec
Slide 50: Progress of Individual Markets: Malaysia
Progress of Individual Markets MALAYSIA • iGM Malaysia continued to see positive AUA growth in 4Q2022, where AUA increased 11.5% QoQ and 15.9% YoY. Despite market volatility in 4Q2022, iGM Malaysia also recorded strong net inflow in the quarter. • The Malaysia iGM division will continue to prioritis
Slide 51: Progress of Individual Markets: China
Progress of Individual Markets CHINA • Net revenue for China operation fell 41.3% YoY and 24.8% QoQ to S$0.34 million in 4Q2022; net revenue also fell 30.6% to S$1.77 million in FY2022. • The AUA of China operations fell -2.9% QoQ and -22.8% YoY to 1.88 billion RMB (approximately S$383 million) as o
Slide 52: Progress of Individual Markets: UK
Progress of Individual Markets UK • Following the acquisition on 28 March 2022, iFAST Global Bank incurred a FY2022 loss of S$5.04 million. • The EzRemit business remains the key contributor to the Bank’s income, and has been actively onboarding new originating counterparties in Middle Eastern count
Slide 53: Progress of Individual Markets: UK
Progress of Individual Markets UK Strategic Growth Target Sustainable Model Distinct geographic presence, market Short Term Long Term sectors leading to financial resilience - NPA, RTGS, Indirect Participation, Other Clearing facilities Diversified Enhanced IT - Broader client base Income Scheme & B
Slide 54: Appendices
SECTION IV Appendices 54
Slide 55: Business Overview
Business Overview • iFAST Corporation Ltd. is a wealth management fintech platform with assets under administration (AUA) of S$17.42 billion as at 31 Dec 2022 (stock code: AIY). • Main business divisions: o Business-to-Consumer (B2C): FSMOne.com (formerly “Fundsupermart”) a multi-product online weal
Slide 56: Milestones
Milestones ▪ Launch of iFAST Platform ▪ Acquired a stake in the holding Services (B2B) in HK ▪ Incorporation of iFAST company of iFAST India Business Launch of iFAST ▪ Launch of Fundsupermart.com Platform Services (Shenzhen) ▪ Launch of HKEX stockbroking on Platform Services (B2C) and iFAST Platform
Slide 57: Milestones
Milestones ▪ Acquisition of iFAST Global Bank Limited, a fully licensed UK-based ▪ Launch of revamped FSMOne bank (formerly known as BFC Bank mobile apps in SG, HK and MY Limited) ▪ Launch of US stockbroking in HK ▪ Launch of FSMOne Debit Card and ▪ Launch of FSMOne in MY ▪ Registered as Private Fun
Slide 58: 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 59: Breakdown of Net Revenue
Breakdown of Net Revenue (FY2021) ePension Division Income, 2.7% Others, 1.3% Fintech Solutions IT Fee, 2.6% FX Margin, 7.3% Transaction Fee/Commission Income (Other Products), 12.1% Trailer Fee, 44.8% Transaction Fee/Commission Income (UT and Portfolio Management Services), 5.3% Net Interest Income
Slide 60: Licences Held and Products and Services Available
Licences Held and Products and Services Available (as at 31 December 2022) 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
Slide 61: 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 62: 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 62
Slide 63: 4Q2022: Activities & Achievements
4Q2022: Activities & Achievements iFAST Corp accorded Runner-Up award for the “Shareholder Communications Excellence Award (SCEA) 2022, Big Cap CSR activities (Hong Kong): iFAST iFAST Hong Kong Events (L-R): iGM Hong Kong participating in the “Global Property Category” at the Securities Investors As
Slide 64: Thank You!
TO HELP INVESTORS AROUND THE WORLD INVEST GLOBALLY AND PROFITABLY THANK YOU! For more information, please visit: www.ifastcorp.com