Slide 1: 2Q2019 & 1H2019 Results Presentation
27 July 2019 2Q2019 & 1H2019 Results Presentation iFAST Corporation Ltd.
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: Table of Contents
Table of Contents Key Summary Pg. 4 2Q2019 (Apr – Jun 2019) and 1H2019 (Jan – Jun 2019) Results Pg. 7 Section I Financial Indicators Financial Results Financial Position Second Interim Dividend Section II The iFAST Fintech Ecosystem Pg. 24 Strengthening Our The Revenue Drivers Fintech Ec
Slide 4: Key Summary
Key Summary • Despite volatile financial market conditions and generally jittery investor sentiments in Asia in 1H2019, the Group’s Assets under Administration (AUA) grew 12.2% year- to-date, from S$8.05 billion at the beginning of 2019 to a record high of S$9.04 billion as at 30 June 2019. • Record
Slide 5: Key Summary
Key Summary • The Group is of the view that at this stage of the overall development of the Fintech industry, continuing enhancements of its overall capabilities will position the Group for any new and emerging opportunities. • The Monetary Authority of Singapore (MAS) recently announced its plan to
Slide 6: Group AUA grew 12.2% YTD to a record high of S$9.04 billion
Group AUA grew 12.2% YTD to a record high of S$9.04 billion AUA (as at 30 Jun 2019): S$9.04 billion1 S$ million $10,000 $9,000 $8,000 $7,000 $6,000 $5,000 $4,000 $3,000 $2,000 $1,000 $- Jun-11 Dec-00 Jun-01 Dec-07 Dec-01 Jun-02 Dec-02 Jun-03 Dec-03 Jun-04 Dec-04 Jun-05 Dec-05 Jun-06 Dec-06 Jun-07 Ju
Slide 7: Financial Results
SECTION I Financial Results iFAST Corporation Ltd. 7
Slide 8: Presentation of Group’s Results
Presentation of Group’s Results Presentation of Group’s results (including and excluding China) • In view that our China operation is a relatively new market for the Group, we are presenting our presentation results based on the results of: 1) Group excluding China operation; and 2) Group including
Slide 9: Financial Results for Group (excluding China operation) (2Q2019 vs 2Q2018)
Financial Results for Group (excluding China operation) (2Q2019 vs 2Q2018) S$ (Million) 2Q2018 2Q2019 YoY change (%) Revenue 30.65 30.57 -0.3 Net revenue 14.69 16.31 +11.0 Other income 0.28 0.47 +71.6 Expenses 10.61 12.52 +18.0 Net finance income/(cost) 0.23 0.02 -90.9 Share of results of associates
Slide 10: Financial Results for Group (including China operation) (2Q2019 vs 2Q2018)
Financial Results for Group (including China operation) (2Q2019 vs 2Q2018) S$ (Million) 2Q2018 2Q2019 YoY change (%) Revenue 30.92 30.64 -0.9 Net revenue 14.96 16.38 +9.5 Other income 0.27 0.47 +71.6 Expenses 12.02 13.89 +15.6 Net finance income/(cost) 0.25 0.02 -89.0 Share of results of associates,
Slide 11: Financial Results for Group (excluding China operation) (1H2019 vs 1H2018)
Financial Results for Group (excluding China operation) (1H2019 vs 1H2018) S$ (Million) 1H2018 1H2019 YoY change (%) Revenue 61.44 57.58 -6.3 Net revenue 28.89 31.14 +7.8 Other income 0.56 1.08 +93.9 Expenses 21.09 24.58 +16.6 Net finance income/(cost) 0.46 -0.15 NM Share of results of associates, n
Slide 12: Financial Results for Group (including China operation) (1H2019 vs 1H2018)
Financial Results for Group (including China operation) (1H2019 vs 1H2018) S$ (Million) 1H2018 1H2019 YoY change (%) Revenue 61.88 57.83 -6.5 Net revenue 29.33 31.39 +7.0 Other income 0.56 1.08 +93.9 Expenses 23.89 27.36 +14.5 Net finance income/(cost) 0.47 -0.13 NM Share of results of associates, n
Slide 13: Results Overview for Group (excluding China operation)
Results Overview for Group (excluding China operation) S$ (Million) FY2015 FY2016 FY20171 FY2018 1H2019 Revenue 85.34 79.89 100.65 120.50 57.58 Net revenue 41.53 40.46 49.01 58.87 31.14 Other income 1.53 1.88 1.10 1.16 1.08 Operating expenses 30.06 33.13 37.31 44.12 24.58 Net finance income/(cost) 0
Slide 14: Results Overview for Group (including China operation)
Results Overview for Group (including China operation) S$ (Million) FY2015 FY2016 FY20171 FY2018 1H2019 Revenue 85.34 80.60 101.17 121.24 57.83 Net revenue 41.53 40.69 49.45 59.62 31.39 Other income 1.53 1.88 1.08 1.16 1.08 Operating expenses 31.08 37.16 42.19 49.78 27.36 Net finance income/(cost) 0
Slide 15: PBT margin for Group (based on net revenue)
PBT margin for Group (based on net revenue) (excluding China operation) (including China operation) 35.0% 33.1% 35.0% 30.7% 30.0% 29.2% 30.0% 26.8% 25.0% 24.3% 25.0% 23.1% 20.7% 20.0% 20.0% 17.7% 15.0% 15.1% 15.0% 15.0% 10.0% 10.0% 5.0% 5.0% 0.0% 0.0% 2015 2016 2017 2018 1H2019 2015 2016 2017 2018 1
Slide 16: Financial Indicators
Financial Indicators S$ (Million) FY2015 FY2016 FY2017 FY2018 1H2019 Net Cash Position1 61.48 54.59 55.91 48.06 42.45 Operating Cash Flows 14.18 5.63 13.22 17.62 9.08 Operating Cash Flows (excluding China 15.43 8.79 16.92 21.62 11.58 Operation) Capital Expenditure2 5.45 6.61 7.47 10.73 5.69 Net Curr
Slide 17: Net Cash Position
Net Cash Position As at 30 Jun 2019 (S$ million) Cash and cash equivalents 24.01 Other investments¹ 28.55 Total cash and other investments 52.56 Less: Bank loans (10.11) Net Cash Position 42.45 (total cash and other investments net off bank loans) Gross Debt-to-Equity Ratio 11.60% Net Debt-to-Equity
Slide 18: Group Operating Cash Flows
Group Operating Cash Flows 25 21.62 20 17.62 16.92 Operating Cashfow ($ Million) 15.43 15 14.18 13.22 11.58 10 8.79 9.08 5.63 5 0 2015 2016 2017 2018 1H2019 Operating Cash Flows (excluding China) Operating Cash Flows (including China) iFAST Corporation Ltd. 18
Slide 19: Capital Expenditure
Capital Expenditure 12,000 11,000 10,727 10,500 10,000 9,000 8,000 7,466 7,000 6,615 S$ Thousand 6,000 5,454 5,000 4,000 3,000 2,000 1,000 0 2015 2016 2017 2018 2019F iFAST Corporation Ltd. 19
Slide 20: Number of issued shares
Number of issued shares As at 31 Dec 2018 As at 30 Jun 2019 Total number of issued shares (excluding treasury shares and 266,776,679 268,510,329 subsidiary holdings) iFAST Corporation Ltd. 20
Slide 21: Our Consolidated Financial Position as at Jun 2019
Our Consolidated Financial Position as at 30 Jun 2019 S$’000 NON-CURRENT ASSETS Plant and Equipment 4,018 Right-of-use Assets 15,151 Intangible Assets and Goodwill 19,408 Associates 3,620 Other Investments 5,249 Deferred Tax Assets 1,062 Prepayments & Others 364 TOTAL NON-CURRENT ASSETS 48,872 CURRE
Slide 22: Our Consolidated Financial Position as at Jun 2019 (cont’d)
Our Consolidated Financial Position as at 30 Jun 2019 (cont’d) S$’000 CURRENT LIABILITIES Uncompleted Contracts – Sellers 24,893 Trade & Other Payables 19,530 Bank Loans 10,110 Lease Liabilities 5,329 Current Tax Payables 1,681 TOTAL CURRENT LIABILITIES 61,543 NON-CURRENT LIABILITIES Deferred Tax Li
Slide 23: Second Interim Dividend for FY2019
Second Interim Dividend for FY2019 Second Interim Dividend for FY2019 - Schedule Dividend per share 0.75 cents per ordinary share Ex-dividend date 6 Aug 2019 Record date and time 7 Aug 2019 (5.00 pm) Payment date 21 Aug 2019 • For the second interim dividend for 2Q2019, the Directors declared a divi
Slide 24: Strengthening Our Fintech Ecosystem
SECTION II Strengthening Our Fintech Ecosystem iFAST Corporation Ltd. 24
Slide 25: iFAST Fintech Ecosystem
iFAST Fintech Ecosystem (as at 30 Jun 2019) Connecting All to Help Investors Invest Globally and Profitably Fund Houses Fundsupermart.com / FSMOne.com / Holds relevant B2C Bondsupermart licences in 5 markets Banks/ Over Bond Dealers 360,000 customer FA Companies accounts in 5 Markets Over 380 compan
Slide 26: The iFAST Fintech Ecosystem
The iFAST Fintech Ecosystem • Products and services: ─ Unit trusts (over 6,500 funds from over 250 fund houses) ─ Bonds (over 1,000 direct bonds) ─ Stocks & ETFs – in 3 markets (Singapore, Hong Kong and US) ─ Discretionary portfolio management services • Over 380 financial institutions and other cor
Slide 27: 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 over 80% of our net revenue • Sources of Non-Recurring Net Revenue ─ Transaction fees –
Slide 28: 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 period from 2015 to 1H2019 was 83.0% S$ million 70 60 11.3 50 8.5 40 6.9 6.0 7.2 30 6.0 5.6 4.0 48.3 4.8 20 18.1 4.6 40.9 12.3 34.6 34.7 4.
Slide 29: Group AUA grew 12.2% YTD to a record high of S$9.04 billion
Group AUA grew 12.2% YTD to a record high of S$9.04 billion AUA (as at 30 Jun 2019): S$9.04 billion1 S$ million $10,000 $9,000 $8,000 $7,000 $6,000 $5,000 $4,000 $3,000 $2,000 $1,000 $- Jun-11 Dec-00 Jun-01 Dec-07 Dec-01 Jun-02 Dec-02 Jun-03 Dec-03 Jun-04 Dec-04 Jun-05 Dec-05 Jun-06 Dec-06 Jun-07 Ju
Slide 30: Net revenue as a ratio of average AUA
Net revenue as a ratio of average AUA 0.800% 0.700% 0.122% 0.126% 0.139% 0.131% 0.105% 0.600% 0.500% 0.400% 0.300% 0.615% 0.609% 0.606% 0.596% 0.606% 0.200% 0.100% 0.000% 2015 2016 2017 2018 1H2019 Recurring net revenue / AUA Non-recurring net revenue / AUA iFAST Corporation Ltd. 30
Slide 31: Pursuing A Digital Bank Licence in Singapore
Pursuing A Digital Bank Licence in Singapore • The Monetary Authority of Singapore (MAS) recently announced its plan to issue up to five digital bank licences to non-bank players. • iFAST Corp sees this as an exciting development in the industry and will be pursuing the digital bank licence in Singa
Slide 32: Our Performance Trends
SECTION III Our Performance Trends iFAST Corporation Ltd. 32
Slide 33: AUA Breakdown: Markets & Products
AUA Breakdown: Markets & Products (as at 30 June 2019) AUA Breakdown By Markets AUA Breakdown by Products 2.4% 3.6% 8.1% 5.0% 7.5% 23.1% 66.4% 83.9% Singapore Hong Kong Unit Trusts Bonds Malaysia Others (China & India) Stocks & ETFs Cash Account iFAST Corporation Ltd. 33
Slide 34: Net sales & Subscription ex-switching
Net sales & Subscription ex-switching S$ million Net Sales S$ million Subscription ex-switching $1,000 $4,000 $942 $3,605 $900 $3,500 $786 $800 $3,000 $700 $2,453 $2,500 $600 $568 $2,055 $500 $2,000 $1,798 $1,670 $396 $1,574 $400 $360 $1,500 $300 $235 $1,000 $200 $500 $100 $- $- 2015 2016 2017 2018
Slide 35: Transaction Volume Of Bondsupermart’s Affiliated Brokers From Inception
Transaction Volume Of Bondsupermart’s Affiliated Brokers From Inception S$ million 180.0 162.7 160.0 152.7 140.0 135.3 127.3 120.0 116.2 102.4 102.4 100.0 90.4 85.2 84.0 80.0 76.8 68.9 70.9 60.0 53.1 56.6 53.3 50.8 46.7 41.1 40.9 43.4 40.0 35.5 20.0 9.1 9.4 7.5 7.8 2.2 5.1 0.0 0.3 1.9 iFAST Corporat
Slide 36: Recurring and Non-Recurring Net Revenue
Recurring and Non-Recurring Net Revenue S$ (Million) FY2015 FY2016 FY2017 FY2018 1H2019 Recurring net revenue 34.64 34.71 40.95 48.32 25.80 Non-recurring net revenue 6.89 5.98 8.50 11.30 5.59 Total net revenue 41.53 40.69 49.45 59.62 31.39 YoY Change (%) FY2015 FY2016 FY2017 FY2018 1H2019 Recurring
Slide 37: Net Revenue – Geographical Segment
Net Revenue – Geographical Segment S$ (Million) FY2015 FY2016 FY2017 FY2018 1H2019 Singapore 30.04 29.54 34.77 39.30 20.49 Hong Kong 9.55 8.66 10.78 14.26 7.62 Malaysia 1.94 2.26 3.47 5.32 3.03 China - 0.23 0.43 0.75 0.25 Group 41.53 40.69 49.45 59.62 31.39 YoY Change (%) FY2015 FY2016 FY2017 FY2018
Slide 38: Net Revenue – B2B Business Segment
Net Revenue – B2B Business Segment B2B Net Revenue FY2015 FY2016 FY2017 FY2018 1H2019 (S$ Million) Recurring net revenue 24.50 24.49 28.85 33.88 18.12 Non-recurring net revenue 4.09 3.86 5.15 7.22 3.27 Total B2B net revenue 28.59 28.35 34.00 41.10 21.39 YoY Change (%) FY2015 FY2016 FY2017 FY2018 1H2
Slide 39: Net Revenue – B2C Business Segment
Net Revenue – B2C Business Segment B2C Net Revenue FY2015 FY2016 FY2017 FY2018 1H2019 (S$ Million) Recurring net revenue 10.15 10.22 12.10 14.44 7.69 Non-recurring net revenue 2.79 2.12 3.35 4.08 2.31 Total B2C net revenue 12.94 12.34 15.45 18.52 10.00 YoY Change (%) FY2015 FY2016 FY2017 FY2018 1H20
Slide 40: Profit/Loss – Geographical Segment
Profit/Loss – Geographical Segment YoY Profit/Loss Change YoY Change (S$ Million) 2Q2018 2Q2019 (%) 1H2018 1H2019 (%) Singapore 3.21 3.01 -6.2 6.22 5.01 -19.3 Hong Kong 1.00 0.84 -15.9 1.81 1.52 -16.3 Malaysia 0.36 0.41 15.4 0.76 0.93 21.6 Other1 (0.06) (0.11) 79.0 (0.09) (0.25) 174.4 Profit before
Slide 41: Profit/Loss – Geographical Segment
Profit/Loss – Geographical Segment Profit/Loss (S$ Million) FY2015 FY2016 FY20172 FY2018 1H2019 Singapore 11.82 9.07 10.62 11.86 5.01 Hong Kong 1.65 0.53 1.77 3.42 1.52 Malaysia 0.28 0.38 1.07 1.37 0.93 Other1 (0.02) (0.16) (0.33) 0.52 (0.25) Profit before tax (excluding China operation) 13.73 9.82
Slide 42: 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% 0.738% 0.729% 0.736% 0.739% 0.711% 0.700% 0.615% 0.607% 0.606% 0.609% 0.599% 0.600% 0.582% 0.583% 0.556% 0.551% 0.534% 0.500% 0.400% 0.300% 0.200% 0.100% 0.000% 2015 2016 2017 2018 1H2019 Net re
Slide 43: 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% 0.738% 0.732% 0.735% 0.737% 0.714% 0.700% 0.652% 0.625% 0.642% 0.614% 0.606% 0.615% 0.609% 0.606% 0.596% 0.600% 0.552% 0.500% 0.400% 0.300% 0.200% 0.100% 0.000% 2015 2016 2017 2018 1H2019 Net re
Slide 44: Progress of Individual Markets: Singapore
Progress of Individual Markets SINGAPORE • Net revenue grew 4.4% YoY to S$20.49 million in 1H2019, while net profit before tax fell 19.3% YoY to S$5.01 million in 1H2019. • The AUA of the Singapore operation grew 9.0% YoY, reaching S$6.0 billion as at 30 June 2019. Both its B2B and B2C divisions ach
Slide 45: Progress of Individual Markets: Singapore
Progress of Individual Markets SINGAPORE • In June 2019, FSMOne.com launched a new cash management solution, the FSM Auto- Sweep Account. For investors who invest in the Auto-Sweep Account and choose to opt-in, their idle cash from dividend payouts and coupons can be swept into the Auto-Sweep Accoun
Slide 46: Progress of Individual Markets: Hong Kong
Progress of Individual Markets HONG KONG • Net revenue grew 8.1% YoY to S$7.62 million in 1H2019, while net profit before tax fell 16.3% YoY to S$1.52 million in 1H2019. • Hong Kong’s AUA grew 4.3% YoY to S$2.08 billion as of 30 June 2019. • Supported by the return of risk-on sentiment in adviser-as
Slide 47: Progress of Individual Markets: Malaysia
Progress of Individual Markets MALAYSIA • Net revenue grew 36.6% YoY to S$3.04 million and net profit before tax grew 21.6% YoY to S$0.93 million in 1H2019. • Malaysia’s AUA grew 16.1% YoY to hit S$732 million as at 30 June 2019. • Sales of investment products picked up in 2Q2019 as markets delivere
Slide 48: Progress of Individual Markets: Malaysia
Progress of Individual Markets MALAYSIA • The website and mobile application revamp for the B2B and iGM division is progressing well. Advisers will be able to assist their clients to transact in the various types of investments products available on the platform more seamlessly in 2H2019. • The iGM
Slide 49: Progress of Individual Markets: China
Progress of Individual Markets CHINA • China’s AUA dipped 9.1% YoY to S$83.73 million (equivalent to RMB 425 million) as at 30 June 2019. The decline in AUA is largely due to significant redemption from some institutional investors. The uncertainty from the escalation of the US-China trade tension a
Slide 50: Progress of Individual Markets: China
Progress of Individual Markets CHINA • The China operation has also increased the number of fund house partners and funds carried on its platform. There are more than 80 fund houses and over 3,500 funds on its platform as at 30 June 2019. • iFAST China will be launching an independent mobile applica
Slide 51: Progress of Individual Markets: India
Progress of Individual Markets INDIA • As at 30 June 2019, iFAST Corp holds an effective 24.7% share in iFAST Financial India Pvt Ltd, the key business of the Group’s India business, which engages in the distribution of investment products including unit trust in India. • India’s AUA grew to India R
Slide 52: Appendices
SECTION IV Appendices iFAST Corporation Ltd. 52
Slide 53: Business Overview
Business Overview • iFAST Corporation Ltd. is a wealth management fintech platform with assets under administration (AUA) of S$9.04 billion as at 30 Jun 2019 (stock code: AIY). • Main business divisions: ─ Business-to-Consumer (B2C) platform, Fundsupermart (including the new FSMOne multi-products ac
Slide 54: Milestones
Milestones 2000 2008 2014 • Launch of Fundsupermart.com • Launch of iFAST Platform Services • Incorporation of iFAST Platform (B2C) in Singapore (B2B) in Hong Kong Services (Shenzhen) Qianhai in China • Launch of Fundsupermart.com • Listing on SGX-ST 2002 (B2C) and iFAST Platform Services • Launch o
Slide 55: Milestones Cont’d
Milestones Cont’d 2016 2017 2019 • Acquisition of a stockbroking • Launch of stocks & ETFs on FSM Hong Kong • iFAST Singapore clinched “Fastest company and an insurance brokerage • Launch of bonds on FSM Malaysia and online Growing SGX-ST Member” Award at SGX firm in Hong Kong DPMS in Malaysia Award
Slide 56: Our Value Proposition
Our Value Proposition PRODUCT B2B B2C PROVIDERS CUSTOMERS DIY INVESTORS • One platform, multiple • One platform, multiple investment • One platform, multiple B2C and B2B customers products investment products • No need to enter into • Adoption of recurring revenue business • Competitive and transpar
Slide 57: Licences Held and Products and Services Available
Licences Held and Products and Services Available (as at end Jun 2019) • Type 1: Dealing in Securities [SFC] • Type 4: Advising on Securities [SFC] • Type 9: Asset Management [SFC] • MPFA • SEHK Participant • HKSCC Participant PRODUCTS AVAILABLE: UT / Bonds / Stocks / ETFs / DPMS • Fund Distributor
Slide 58: iFAST’s Fintech Footprint: Past and Present
iFAST’s Fintech Footprint: Past and Present PAST: Building the Foundation (2000-2013) PRESENT: Stepping Up the Game (2014-2019) Focus on building Fintech capabilities in-house to Focus on broadening the range and depth of investment efficiently and effectively deliver innovative products and asset c
Slide 59: iFAST Fintech Solutions
iFAST Fintech Solutions • The iFAST Fintech Solutions business division was set up in 2017, with the objectives to empower our business partners in advancing their wealth management business by delivering innovative fintech solutions that can better suit their clients’ needs, while combining busines
Slide 60: Awards & Achievements
Awards & Achievements At the Singapore Corporate Awards 2019 held on 23 July 2019: iFAST Corp was accorded “Best Investor Relations – Bronze Award” under the Companies with less than S$300 million in market capitalisation category. iFAST Corp’s Chief Financial Officer, Mr. Leung Fung Yat David, was
Slide 61: 1H2019: Activities & Achievements
1H2019: Activities & Achievements FSMOne.com Singapore held its first ever dedicated ETF gathering for investors – FSM ETF Festival in May 2019. The event is also the first of its kind in Singapore. From left to right: iFAST Hong Kong organised the iFAST Wealth Adviser Awards 2019 to recognise wealt
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 ADVISORY COMPANIES FINTECH SOLUTIONS OTHER SERVICE FEES FACILITIES iFAST Corporation Ltd. 62
Slide 63: Thank You.
TO HELP INVESTORS AROUND THE WORLD INVEST GLOBALLY AND PROFITABLY Thank You. FOR MORE INFORMATION, PLEASE VISIT www.ifastcorp.com iFAST Corporation Ltd.