Slide 1: 1Q2016 Results Presentation
1Q2016 Results Presentation 29 April 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 1Q2016 (Jan-Mar 2016) results Financial ratios Financial position Interim dividend II Performance Trends Assets under Administration (AUA) Net sales and subscription excluding switching Recurring net revenue, non-recurring net revenue
Slide 4: 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 5: Key Summary
Key Summary • The Group has been working to enhance the platform’s investment products and services to customers and had soft launched the China business in March 2016 • The stepped-up investments and expenses in 1Q2016 coincided with very adverse financial market conditions at the beginning of 2016
Slide 6: 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 6
Slide 7: Financial Results for Group (excluding China operation) (1Q2016 vs 1Q2015)
Financial Results for Group (excluding China operation) (1Q2016 vs 1Q2015) 1Q2015 1Q2016 YoY change (%) S$ (Million) Revenue 20.89 18.67 -10.6 Net revenue 9.86 9.35 -5.1 Other income 0.48 0.81 +67.4 Expenses 7.05 8.09 +14.8 Net finance income 0.08 0.25 +203.7 Share of result of associate, net of tax
Slide 8: Financial Results for Group (including China operation) (1Q2016 vs 1Q2015)
Financial Results for Group (including China operation) (1Q2016 vs 1Q2015) 1Q2015 1Q2016 YoY change (%) S$ (Million) Revenue 20.89 18.67 -10.6 Net revenue 9.86 9.35 -5.1 Other income 0.48 0.81 +67.4 Expenses 7.18 8.98 +25.0 Net finance income 0.08 0.25 +203.7 Share of result of associate, net of tax
Slide 9: Key highlights for Group (excluding China operation)
Key highlights for Group (excluding China operation) FY2012 FY2013¹ FY2014² FY2015 1Q2016 Net revenue (S$ million) 26.29 31.58 36.68 41.53 9.35 Net revenue (YoY change) +4.4% +20.1% +16.1% +13.2% -5.1% Net profit (S$ million) 3.74 7.86 11.03 13.08 2.09 Ased Net profit (YoY change) +35.0% +110.2% +40
Slide 10: Key highlights for Group (including China operation)
Key highlights for Group (including China operation) FY2012 FY2013¹ FY2014² FY2015 1Q2016 Net revenue (S$ million) 26.29 31.58 36.68 41.53 9.35 Net revenue (YoY change) +4.4% +20.1% +16.1% +13.2% -5.1% Ased Net profit (S$ million) 3.74 7.86 10.51 12.10 1.25 Net profit (YoY change) +35.0% +110.2% +33
Slide 11: Results Overview for Group (excluding China operation)
Results Overview for Group (excluding China operation) FY2012 FY2013¹ FY2014² FY2015 1Q2016 S$ (Million) Revenue 56.41 69.47 78.35 85.34 18.67 Net revenue 26.29 31.58 36.68 41.53 9.35 Other income 0.08 0.16 0.24 1.53 0.81 Expenses 22.40 23.58 25.62 30.06 8.09 Net finance income -0.03 0.03 0.10 0.75
Slide 12: Results Overview for Group (including China operation)
Results Overview for Group (including China operation) FY2012 FY2013¹ FY2014² FY2015 1Q2016 S$ (Million) Revenue 56.41 69.47 78.35 85.34 18.67 Net revenue 26.29 31.58 36.68 41.53 9.35 Other income 0.08 0.16 0.24 1.53 0.81 Expenses 22.40 23.58 26.14 31.08 8.98 Net finance income -0.03 0.03 0.10 0.80
Slide 13: PBT margin for Group (based on net revenue)
PBT margin for Group (based on net revenue) (excluding China operation) (including China operation) 35% 35% 33.1% 30.7% 31.0%² 29.6%² 30% 30% 25.9%¹ 25.9%¹ 25% 25% 20% 20% 15.0% 24.2% 15.0% 15.3% 15% 15% 10% 10% 5% 5% 0% 0% 2012 2013 2014 2015 1Q2016 2012 2013 2014 2015 1Q2016 Notes: 1. Excluding on
Slide 14: Financial Ratios
Financial Ratios S$ (Million) FY2012 FY2013 FY2014 FY2015 1Q2016 Operating 2.33 7.13 10.18 14.18 -0.23¹ Cashflows Capital 0.21 1.57 2.34 5.45 1.36 Expenditure 31 Dec 31 Dec 31 Dec 31 Dec 31 Mar S$ (Million) 2012 2013 2014 2015 2016 Net Current 20.95 20.70 63.16 68.32 67.10 Assets 31 Dec 31 Dec 31 De
Slide 15: Cash position
Cash position As at 31 Dec 2015 As at 31 Mar 2016 (S$ million) (S$ million) Cash and cash equivalents 29.52 27.13 Other investments¹ 31.96 31.72 Total cash and other investments 61.48 58.85 Note: 1. Other investments represent investments in available-for-sale financial assets. PRIVATE & CONFIDENTIA
Slide 16: Number of issued shares
Number of issued shares As at 31 Dec 2015 As at 31 Mar 2016 Total number of issued shares 260,977,301 261,057,801 PRIVATE & CONFIDENTIAL. NOT FOR EXTERNAL CIRCULATION. CO. REG. NO. R200007899C 16
Slide 17: Our Consolidated Financial Position as at 31 Mar 2016
Our Consolidated Financial Position as at 31 Mar 2016 S$’000 NON-CURRENT ASSETS Fixed Assets 2,404 Intangible Assets 7,264 Associate 358 Others 427 10,453 CURRENT ASSETS Trade & other receivables 19,468 Prepayments & others 1,421 Other Investments 31,723 Cash & cash equivalents 27,128 79,740 TOTAL A
Slide 18: Our Consolidated Financial Position as at 31 Mar 2016 – cont’d
Our Consolidated Financial Position as at 31 Mar 2016 – cont’d S$’000 CURRENT LIABILITIES Trade & other payables 11,897 Current tax payable 747 12,644 NON-CURRENT LIABILITIES Deferred Tax 228 228 EQUITY Share Capital 62,579 Accumulated profits 18,732 Other reserves (3,990) EQUITY ATTRIBUTABLE TO OWN
Slide 19: First Interim Dividend for FY2016
First Interim Dividend for FY2016 First Interim Dividend for FY2016 - Schedule Dividend per share 0.68 cents per ordinary share 6 May 2016 Ex-dividend date 20 May 2016 Payment date • In 2016, the Group’s Dividend Guidance is: “For FY2016, our Directors intend to recommend and distribute dividends of
Slide 20: 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 20
Slide 21: Group AUA
Group AUA S$ million AUA (as at 31 Mar 2016): S$5.51 billion $7,000 $6,000 $5,000 $4,000 $3,000 $2,000 $1,000 B2B: 74.7% and B2C: 25.3% $- Sep-04 Sep-10 Sep-11 Sep-01 Sep-02 Sep-03 Sep-05 Sep-06 Sep-07 Sep-08 Sep-09 Sep-12 Sep-13 Sep-14 Sep-15 Mar-01 Mar-02 Mar-04 Mar-05 Mar-06 Mar-07 Mar-08 Mar-09
Slide 22: Group AUA Trends
Group AUA Trends Singapore: 72.7% Hong Kong: 21.7% Malaysia: 5.6% • AUA fell 4.2% YoY to S$5.51 billion (as at 31 March 2016) • AUA grew at a 10-year CAGR of 15.0% (as at 31 March 2016) • AUA from the B2B and B2C segments declined 4.5% and 3.3% YoY respectively (as at 31 March 2016) PRIVATE & CONFID
Slide 23: Net sales
Net sales S$ million S$ million Net sales Subscription ex-switching $600 $2,000 $501 $1,670 $500 $458 $1,600 $1,547 $1,365 $396 $400 $1,200 $300 $940 $800 $193 $200 $100 $400 $299 $41 $- $- 2012 2013 2014 2015 1Q2016 2012 2013 2014 2015 1Q2016 PRIVATE & CONFIDENTIAL. NOT FOR EXTERNAL CIRCULATION. CO
Slide 24: Net revenue breakdown between recurring and non-recurring sources
Net revenue breakdown between recurring and non-recurring sources Average contribution from recurring net revenue as opposed to non-recurring net revenue in the S$ million period from FY2012 to 1Q2016 was 83.4% 45 41.5 40 36.7 35 31.6 30 28.8 25.3 25.2 26.3 25 21.8 20 15.9 15 12.8 10 9.4 6.9 4.3 5 0
Slide 25: 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% 0.594% 0.571% 0.574% 0.200% 0.100% 0.000% 2012 2013 2014 2015 1Q2016 Recurring net revenue / AUA Non-recurring net revenue / AUA PRIVATE & CONFIDENTIAL. NOT FOR EXTERNAL C
Slide 26: 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% 0.684% 0.700% 0.672% 0.594% 0.615% 0.591% 0.592% 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 1Q2016 Net re
Slide 27: 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% 0.684% 0.700% 0.672% 0.656% 0.615% 0.591% 0.594% 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 1Q2016 Net re
Slide 28: Recurring and Non-Recurring Net Revenue
Recurring and Non-Recurring Net Revenue S$ (Million) FY2012 FY2013 FY2014 FY2015 1Q2016 Recurring net revenue 22.34 25.62 29.48 34.64 8.12 Non-recurring net revenue 3.95 5.96 7.20 6.89 1.23 Total net revenue 26.29 31.58 36.68 41.53 9.35 YoY Change (%) FY2012 FY2013 FY2014 FY2015 1Q2016 Recurring net
Slide 29: Net Revenue – Geographical Segment
Net Revenue – Geographical Segment S$ (Million) FY2012 FY2013 FY2014 FY2015 1Q2016 Singapore 21.33 24.10 25.72 30.04 6.75 Hong Kong 4.39 6.50 9.48 9.55 2.08 Malaysia 0.57 0.98 1.48 1.94 0.51 China - - - - 0.01¹ Group 26.29 31.58 36.68 41.53 9.35 YoY Change (%) FY2012 FY2013 FY2014 FY2015 1Q2016 Sing
Slide 30: Net Revenue – B2B Business Segment
Net Revenue – B2B Business Segment B2B Net Revenue FY2012 FY2013 FY2014 FY2015 1Q2016 (S$ Million) Recurring net revenue 16.03 18.16 21.09 24.50 5.72 Non-recurring net revenue 2.11 3.06 4.46 4.09 0.78 Total B2B net revenue 18.14 21.22 25.55 28.59 6.50 YoY Change (%) FY2012 FY2013 FY2014 FY2015 1Q201
Slide 31: Net Revenue – B2C Business Segment
Net Revenue – B2C Business Segment B2C Net Revenue FY2012 FY2013 FY2014 FY2015 1Q2016 (S$ Million) Recurring net revenue 6.31 7.46 8.39 10.15 2.40 Non-recurring net revenue 1.84 2.90 2.74 2.79 0.45 Total B2C net revenue 8.15 10.36 11.13 12.94 2.85 YoY Change (%) FY2012 FY2013 FY2014 FY2015 1Q2016 Re
Slide 32: Profit/Loss – Geographical Segment
Profit/Loss – Geographical Segment Profit/Loss After Tax (S$ Million) FY2012 FY2013 FY2014 FY2015 1Q2016 Singapore 5.64 7.81¹ 9.00² 11.21 1.98 Hong Kong (1.19) 0.40 2.10 1.65 0.04 Malaysia (1.19) (0.59) (0.09) 0.24 0.07 Other³ - - (0.01) (0.02) (0.01)⁴ Net profit (excluding China operation) 3.26 7.6
Slide 33: 1Q2016 Results Summary & Outlook (Group excluding China)
1Q2016 Results Summary & Outlook (Group excluding China) • The Group has been working to enhance the platform’s capabilities to include more investment products and services to its customers • Unfortunately, the stepped-up investments and expenses in 1Q2016 coincided with very adverse financial mark
Slide 34: 1Q2016 Results Summary & Outlook (Group including China)
1Q2016 Results Summary & Outlook (Group including China) • The China business was soft launched in March 2016 • Our Group’s net profit (including China) declined 58.4% YoY to S$1.25 million in 1Q2016, while net revenue fell fell 5.1% YoY to S$9.35 million, due to the effects of negative market senti
Slide 35: 1Q2016 Results Summary & Outlook (Group including China)
1Q2016 Results Summary & Outlook (Group including China) • Besides the business expansion plans in China, the Group has signed a Memorandum of Understanding (MOU) on 28 April 2016 to sell a 5% stake in the iFAST China business for US$1.75 million, which is targeted to be completed for end-June 2016
Slide 36: 1Q2016 Results & Outlook - Singapore
1Q2016 Results & Outlook - Singapore • Singapore continues to be the Group’s largest contributor in terms of AUA, net revenue and net profit • Singapore’s profit after tax decreased 28.4% YoY to S$1.98 million in 1Q2016 • Net revenue declined 4.9% YoY to S$6.75 million in 1Q2016 • AUA declined 4.9%
Slide 37: 1Q2016 Results & Outlook – Hong Kong
1Q2016 Results & Outlook – Hong Kong • Hong Kong’s profit after tax decreased 89.3% YoY to S$0.04 million in 1Q2016 • Net revenue was down 11.5% YoY in 1Q2016 • AUA declined 8.6% YoY to S$1.20 billion in 1Q2016 • The decline was mainly due to the sharp sell-down in the China/Hong Kong equity markets
Slide 38: 1Q2016 Results & Outlook – Malaysia
1Q2016 Results & Outlook – Malaysia • After breaking even in 2015, Malaysia’s profit after tax rose to S$0.07 million in 1Q2016, compared to a loss incurred of $0.02 million in 1Q2015 • Net revenue increased 28.0% YoY to S$0.51 million in 1Q2016 • AUA increased 33.4% YoY to S$0.31 billion in 1Q2016
Slide 39: 1Q2016 Results & Outlook – China
1Q2016 Results & Outlook – China • The China business was soft launched in March 2016; the China operation’s loss increased 548.1% YoY to S$0.84 million in 1Q2016 • The China operation began to receive its first few transaction orders in 1Q2016 • iFAST China signed an agreement with an online media
Slide 40: 1Q2016 Results & Outlook – China
1Q2016 Results & Outlook – China • As previously stated in 3Q2015 and FY2015 Results Presentation decks, the Group intends to explore the possibility of selling a minority stake in iFAST China to institutional investors and/or other investors in the next 1-2 years • On 28 April 2016, the Group signe
Slide 41: Updates – India
Updates – India • On 20 April 2016, the Group’s acquisition of a 21.47% stake in the holding company of the iFAST India business was completed. Following the acquisition, iFAST India is an associated company of the Group • iFAST India remained loss-making, but its AUA trend has been positive; AUA st
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 42
Slide 43: Business Overview
Business Overview • We are an Internet-based investment products distribution platform with assets under administration (AUA) of S$5.51 billion as at 31 March 2016 (stock code: AIY) • Two main business divisions: – Business-to-Consumer (B2C) website, Fundsupermart.com, targeted at DIY investors (AUA
Slide 44: Our Milestones
Our Milestones 2002 2008 2014 2016 Launch of • Launch of iFAST Platform • Incorporation of iFAST • Completion of acquisition iFAST Platform Services Services (B2B) in Hong Kong Platform Services of a stockbroking company (B2B) in Singapore • Launch of Fundsupermart.com (Shenzhen) Qianhai in in Hong
Slide 45: Business Model
Business Model PRIVATE & CONFIDENTIAL. NOT FOR EXTERNAL CIRCULATION. CO. REG. NO. R200007899C 45
Slide 46: 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 47: 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 48: 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 48