Slide 1: 2Q2017 & 1H2017 Results Presentation
2Q2017 & 1H2017 Results Presentation 28 July 2017 PRIVATE & CONFIDENTIAL. NOT FOR EXTERNAL CIRCULATION. CO. REG. NO. R200007899C
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 2Q2017 (Apr - Jun 2017) and 1H2017 (Jan - Jun 2017) 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’s Assets Under Administration (AUA) increased 21.1% YoY to hit a record high of S$6.81 billion as at 30 June 2017 • The core markets in the Group all hit record high AUA levels: Singapore’s AUA (+15.9% YoY), Hong Kong’s AUA (+27.2% YoY), and Malaysia’s AUA (+46.6% YoY) • The
Slide 5: Group AUA grew 21.1% YoY to record S$6.81 billion
Group AUA grew 21.1% YoY to record S$6.81 billion S$ million AUA (as at 30 June 2017): S$6.81 billion¹ $8,000 $7,000 $6,000 $5,000 $4,000 $3,000 $2,000 $1,000 $- Dec-04 Dec-01 Dec-02 Dec-03 Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 Dec-14 Dec-15 Dec-16 Jun-11 Jun-01 Jun-02 Jun-0
Slide 6: Key Summary
Key Summary • In June 2017, the Group’s Singapore operation (iFAST Financial Pte Ltd) was admitted as a Trading Member of Singapore Exchange Securities Trading Limited (SGX-ST), and a Clearing Member of The Central Depository (Pte) Limited (CDP) • The Singapore operation launched SGX trading capabil
Slide 7: Key Summary
Key Summary • The Group’s Dividend Guidance for FY2017 (similar to FY2016) is: “For FY2017, our Directors intend to recommend and distribute dividends of 60% or more of our Group’s net profit (excluding our China operation, and exceptional items)” • The Directors have proposed a second interim divid
Slide 8: Section I: Financial Results
Section I: Financial Results PRIVATE & CONFIDENTIAL. NOT FOR EXTERNAL CIRCULATION. CO. REG. NO. R200007899C
Slide 9: Presentation of Group’s Results
Presentation of Group’s Results Presentation of Group’s results (including and excluding China) • In view of the guidance we have provided on our China operation (that the China business would be expected to have a negative impact on the Group’s overall operating profit on a consolidated basis in 20
Slide 10: Financial Results for Group (excluding China operation) (2Q2017 vs 2Q2016)
Financial Results for Group (excluding China operation) (2Q2017 vs 2Q2016) S$ (Million) 2Q2016 2Q2017 YoY change (%) Revenue 19.14 24.56 +28.3 Net revenue 9.63 11.85 +23.0 Other income 0.30 0.43 +45.8 Expenses 8.09 8.60 +6.3 Net finance income 0.20 0.15 -25.5 Share of results of associates, net of t
Slide 11: Financial Results for Group (including China operation) (2Q2017 vs 2Q2016)
Financial Results for Group (including China operation) (2Q2017 vs 2Q2016) S$ (Million) 2Q2016 2Q2017 YoY change (%) Revenue 19.37 24.66 +27.3 Net revenue 9.68 11.95 +23.4 Other income 0.30 0.43 +45.8 Expenses 8.87 9.84 +10.9 Net finance income 0.20 0.16 -23.5 Share of results of associates, net of
Slide 12: Financial Results for Group (excluding China operation) (1H2017 vs 1H2016)
Financial Results for Group (excluding China operation) (1H2017 vs 1H2016) S$ (Million) 1H2016 1H2017 YoY change (%) Revenue 37.81 46.52 +23.0 Net revenue 18.98 22.97 +21.0 Other income 1.10 0.87 -21.0 Expenses 16.18 16.98 +4.9 Net finance income 0.45 0.35 -22.0 Share of result of associates, net of
Slide 13: Financial Results for Group (including China operation) (1H2017 vs 1H2016)
Financial Results for Group (including China operation) (1H2017 vs 1H2016) S$ (Million) 1H2016 1H2017 YoY change (%) Revenue 38.05 46.76 +22.9 Net revenue 19.04 23.12 +21.5 Other income 1.10 0.87 -21.0 Expenses 17.85 19.27 +8.0 Net finance income 0.45 0.36 -20.8 Share of result of associates, net of
Slide 14: Results Overview for Group (excluding China operation)
Results Overview for Group (excluding China operation) S$ (Million) FY2013¹ FY2014² FY2015 FY2016 1H2017 Revenue 69.47 78.35 85.34 79.89 46.52 Net revenue 31.58 36.68 41.53 40.46 22.97 Other income 0.16 0.24 1.53 1.88 0.87 Impairment loss on investment - - - 0.68 - in financial assets Operating expe
Slide 15: Results Overview for Group (including China operation)
Results Overview for Group (including China operation) S$ (Million) FY2013¹ FY2014² FY2015 FY2016 1H2017 Revenue 69.47 78.35 85.34 80.60 46.76 Net revenue 31.58 36.68 41.53 40.69 23.12 Other income 0.16 0.24 1.53 1.88 0.87 Impairment loss on investment in financial - - - 0.68 - assets Operating expe
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% 33.1% 35% 31.1% 30.7% 30.3% 29.6% 30% 30% 26.0% 26.0% 26.0% 25% 25% 20.9% 20% 20% 16.7% 15% 15% 10% 10% 5% 5% 0% 0% 2013 2014 2015 2016 1H2017 2013 2014 2015 2016 1H2017 Notes: 1. PBT margins (201
Slide 17: Financial Ratios
Financial Ratios S$ (Million) FY2013 FY2014 FY2015 FY2016 1H2017 Operating 7.13 10.18 14.18 5.63 4.91 Cashflows Capital 1.57 2.34 5.45 6.61 2.85 Expenditure 31 Dec 31 Dec 31 Dec 31 Dec 30 Jun S$ (Million) 2013 2014 2015 2016 2017 Net Current 20.70 63.16 68.32 64.39 64.01 Assets 31 Dec 31 Dec 31 Dec
Slide 18: Cash position
Cash position As at 31 Dec 2016 As at 30 Jun 2017 (S$ million) (S$ million) Cash and cash equivalents 22.46 25.72 Other investments¹ 32.13 26.73 Total cash and other investments 54.59 52.45 Note: 1. Other investments comprise investments in available-for-sale financial assets and held-for-trading fi
Slide 19: Number of issued shares
Number of issued shares As at 31 Dec 2016 As at 30 Jun 2017 Total number of issued shares 262,223,415 263,378,532 19 PRIVATE & CONFIDENTIAL. NOT FOR EXTERNAL CIRCULATION. CO. REG. NO. R200007899C
Slide 20: Our Consolidated Financial Position as at 30 June 2017
Our Consolidated Financial Position as at 30 June 2017 S$’000 NON-CURRENT ASSETS Fixed Assets 2,593 Intangible Assets 11,178 Associates 1,703 Others 488 15,962 CURRENT ASSETS Trade & other receivables 33,605 Prepayments & others 2,111 Other Investments 26,729 Cash & cash equivalents 25,720 88,165 TO
Slide 21: Our Consolidated Financial Position as at 30 June 2017 – cont’d
Our Consolidated Financial Position as at 30 June 2017 – cont’d S$’000 CURRENT LIABILITIES Trade & other payables 23,278 Finance Lease 5 Current tax payable 873 24,156 NON-CURRENT LIABILITIES Deferred Tax 562 Finance Lease 16 578 EQUITY Share Capital 64,840 Accumulated profits 16,319 Other reserves
Slide 22: Second Interim Dividend for FY2017
Second Interim Dividend for FY2017 Second Interim Dividend for FY2017 - Schedule Dividend per share 0.68 cents per ordinary share Ex-dividend date 4 August 2017 Record date and time 8 August 2017 (5.00 pm) Payment date 21 August 2017 • The Group’s Dividend Guidance for FY2017 is: “For FY2017, our Di
Slide 23: Section II: Performance Trends
Section II: Performance Trends PRIVATE & CONFIDENTIAL. NOT FOR EXTERNAL CIRCULATION. CO. REG. NO. R200007899C
Slide 24: Group AUA Trends
Group AUA Trends Singapore: 69.4% Hong Kong: 22.1% Malaysia: 6.8% Others: 1.7% • The AUA contribution from the China Business and India Business (based on the Group’s effective share of the India Business) is included in the ‘Others’ category • The Group’s AUA rose 21.1% YoY and 5.5% QoQ to a record
Slide 25: Net sales & Subscription ex-switching
Net sales & Subscription ex-switching S$ million S$ million Net Sales Subscription ex-switching $1,800 $600 $1,670 $1,547 $1,574 $1,600 $501 $500 $458 $1,400 $1,365 $419 $396 $1,193 $400 $1,200 $1,000 $300 $235 $800 $648 $200 $600 $96 $400 $100 $200 $- 2013 2014 2015 2016 1H16 1H17 $- 2013 2014 2015
Slide 26: Net revenue breakdown between recurring and non-recurring sources
Net revenue breakdown between recurring and non-recurring sources Average contribution from recurring net revenue as opposed to non-recurring net revenue in the S$ million period from 2012 to 1H2017 was 83.1% 45 40 6.9 6.0 35 7.2 30 6.0 25 4.0 4.8 3.8 20 18.1 12.3 4.6 34.6 34.7 15 29.5 4.0 25.6 22.3
Slide 27: Net revenue as a ratio of average AUA
Net revenue as a ratio of average AUA 0.800% 0.700% 0.144% 0.122% 0.105% 0.117% 0.134% 0.600% 0.500% 0.400% 0.300% 0.591% 0.615% 0.609% 0.602% 0.574% 0.200% 0.100% 0.000% 2013 2014 2015 2016 1H2017 Recurring net revenue / AUA Non-recurring net revenue / AUA 27 PRIVATE & CONFIDENTIAL. NOT FOR EXTERNA
Slide 28: 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% 0.711% 0.717% 0.700% 0.615% 0.607% 0.602% 0.574% 0.591% 0.600% 0.570% 0.528% 0.534% 0.530% 0.513% 0.500% 0.400% 0.300% 0.200% 0.100% 0.000% 2013 2014 2015 2016 1H2017 Net re
Slide 29: 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% 0.714% 0.719% 0.700% 0.640% 0.615% 0.609% 0.602% 0.599% 0.574% 0.591% 0.600% 0.552% 0.528% 0.524% 0.500% 0.400% 0.300% 0.200% 0.100% 0.000% 2013 2014 2015 2016 1H2017 Net re
Slide 30: Recurring and Non-Recurring Net Revenue
Recurring and Non-Recurring Net Revenue S$ (Million) FY2013 FY2014 FY2015 FY2016 1H2017 Recurring net revenue 25.62 29.48 34.64 34.71 19.34 Non-recurring net revenue 5.96 7.20 6.89 5.98 3.78 Total net revenue 31.58 36.68 41.53 40.69 23.12 YoY Change (%) FY2013 FY2014 FY2015 FY2016 1H2017 Recurring n
Slide 31: Net Revenue – Geographical Segment
Net Revenue – Geographical Segment S$ (Million) FY2013 FY2014 FY2015 FY2016 1H2017 Singapore 24.10 25.72 30.04 29.54 16.39 Hong Kong 6.50 9.48 9.55 8.66 5.02 Malaysia 0.98 1.48 1.94 2.26 1.56 China - - - 0.23 0.15 Group 31.58 36.68 41.53 40.69 23.12 YoY Change (%) FY2013 FY2014 FY2015 FY2016 1H2017
Slide 32: Net Revenue – B2B Business Segment
Net Revenue – B2B Business Segment B2B Net Revenue FY2013 FY2014 FY2015 FY2016 1H2017 (S$ Million) Recurring net revenue 18.16 21.09 24.50 24.49 13.67 Non-recurring net revenue 3.06 4.46 4.09 3.86 2.19 Total B2B net revenue 21.22 25.55 28.59 28.35 15.86 YoY Change (%) FY2013 FY2014 FY2015 FY2016 1H2
Slide 33: Net Revenue – B2C Business Segment
Net Revenue – B2C Business Segment B2C Net Revenue FY2013 FY2014 FY2015 FY2016 1H2017 (S$ Million) Recurring net revenue 7.46 8.39 10.15 10.22 5.67 Non-recurring net revenue 2.90 2.74 2.79 2.12 1.59 Total B2C net revenue 10.36 11.13 12.94 12.34 7.26 YoY Change (%) FY2013 FY2014 FY2015 FY2016 1H2017
Slide 34: Profit/Loss – Geographical Segment
Profit/Loss – Geographical Segment Profit/Loss After Tax (S$ Million) FY2013 FY2014 FY2015 FY2016 1H2017 Singapore 7.81¹ 9.00² 11.21 9.05⁴ 5.28 Hong Kong 0.40 2.10 1.65 0.53 0.66 Malaysia (0.59) (0.09) 0.24 0.32 0.53 Others³ - (0.01) (0.02) (0.16) (0.24) Net profit (excluding China operation) 7.62 1
Slide 35: 1H2017 Results & Outlook - Singapore
1H2017 Results & Outlook - Singapore • AUA grew 15.9% YoY (+3.7% QoQ) to a record high of S$4.73 billion as at 30 June 2017 • Net revenue grew 18.4% YoY to S$16.39 million and net profit after tax grew 37.4% YoY to S$5.28 million in 1H2017, due to improved market sentiment and increased sales in inv
Slide 36: 1H2017 Results & Outlook – Hong Kong
1H2017 Results & Outlook – Hong Kong • Hong Kong’s AUA grew 27.2% YoY (+7.5% QoQ) to hit a record high of S$1.51 billion as at 30 June 2017 • Net revenue increased 21.9% YoY to S$5.02 million and net profit after tax improved 731.6% to S$0.66 million in 1H2017 • Improved market sentiment especially
Slide 37: 1H2017 Results & Outlook – Malaysia
1H2017 Results & Outlook – Malaysia • Malaysia’s AUA grew 46.6% YoY (+12.7% QoQ) to hit a record high of S$465.75 million as at 30 June 2017 • Net revenue grew 52.4% YoY to S$1.56 million and net profit after tax grew by 573.4% YoY to S$0.53 million in 1H2017 • Similar to the Group’s Singapore and H
Slide 38: 1H2017 Results & Outlook – China
1H2017 Results & Outlook – China • The China business was soft launched in March 2016 and remains in the early stages of building the iFAST brand among potential clients and investment practitioners in China’s wealth management industry • Gross revenue in China operation decreased by 57.9% YoY in 2Q
Slide 39: 1H2017 Results & Outlook – China
1H2017 Results & Outlook – China • The China operation is continuing to bring in sales through its team of in-house wealth advisers (under the ‘platform-cum-IFA incubator’ strategy). The recruitment and training for this advisory arm will continue, as the Group sees more potential in the inflows fro
Slide 40: Section III: Appendices
Section III: Appendices PRIVATE & CONFIDENTIAL. NOT FOR EXTERNAL CIRCULATION. CO. REG. NO. R200007899C
Slide 41: Business Overview
Business Overview • We are an Internet-based investment products distribution platform with assets under administration (AUA) of S$6.81 billion as at 30 June 2017 (stock code: AIY) • Two main business divisions: – Business-to-Consumer (B2C) platform, Fundsupermart (including its new FSMOne multi- pr
Slide 42: 2000 – 1H2017 Milestones
2000 – 1H2017 Milestones 1H2017 • Launch of Stocks & ETFs on FSM Hong Kong 2000 2008 2014 2015 • Launch of Bonds on FSM Malaysia • Launch of online robo-advisory Launch of • Launch of iFAST • Incorporation of • Distribution of bonds service in Malaysia Fundsupermart.com Platform Services iFAST Platf
Slide 43: Business Model
Business Model PRIVATE & CONFIDENTIAL. NOT FOR EXTERNAL CIRCULATION. CO. REG. NO. R200007899C 43
Slide 44: 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 45: Fees Illustration
Fees Illustration 45 PRIVATE & CONFIDENTIAL. NOT FOR EXTERNAL CIRCULATION. CO. REG. NO. R200007899C
Slide 46: Thank you.
Thank you. For more information, please visit www.ifastcorp.com PRIVATE & CONFIDENTIAL. NOT FOR EXTERNAL CIRCULATION. CO. REG. NO. R200007899C