Slide 1: 2Q2021 & 1H2021 Results Presentation
iFAST Corporation Ltd. 2Q2021 & 1H2021 Results Presentation 23 JULY 2021
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 2Q2021 (Apr–Jun 2021) & 1H2021 (Jan-Jun 2021) Results Pg. 8 Section I Financial Indicators Financial Results Interim Dividends AUA Breakdown: Markets & Products Pg. 22 Section II Recurring and Non-recurring Net Revenue Our Performance Performance by Geographi
Slide 4: Key Summary
Key Summary • The Group’s assets under administration (“AUA”) continued to register new record levels, reaching S$17.54 billion as at 30 June 2021, a growth of 57.3% YoY and 21.4% YTD. The AUA of unit trusts, the Group’s key investment asset class, grew to a record S$12.87 billion, a growth of 48.7%
Slide 5: Key Summary
Key Summary • iFAST Corp believes that the robust growth seen by the Group in recent times has resulted from its past investments in building up a strong integrated digital wealth management platform. The Group will continue to work hard on various initiatives in all existing markets that the Group
Slide 6: Group AUA grew 57.3% YoY and 21.4% YTD to S$17.54 billion
Group AUA grew 57.3% YoY and 21.4% YTD to S$17.54 billion as at 30 June 2021 AUA (as at 30 Jun 2021): S$17.54 billion1 $18,000.00 $16,000.00 $14,000.00 $12,000.00 $10,000.00 $8,000.00 $6,000.00 $4,000.00 $2,000.00 $- Jun-00 Jun-01 Jun-02 Jun-03 Jun-04 Jun-05 Jun-06 Jun-07 Jun-08 Jun-09 Jun-10 Jun-11
Slide 7: Net inflows & Gross Unit Trusts (UT) subscription
Net inflows & Gross Unit Trusts (UT) subscription S$ million Net Inflows S$ million Gross UT Subscriptions $3,500 $6,000 $5,647 $3,160 $3,000 $5,000 $2,500 $3,971 $4,000 $2,122 $2,000 $3,053 $2,908 $2,870 $3,000 $2,484 $1,500 $1,247 $976 $2,000 $1,000 $942 $786 $1,000 $500 $- $- 2017 2018 2019 2020
Slide 8: Financial Results
SECTION I Financial Results 8
Slide 9: Financial Results for Group (2Q2021 vs 2Q2020)
Financial Results for Group (2Q2021 vs 2Q2020) S$ (Million) 2Q2020 2Q2021 YoY change (%) Revenue 38.55 50.79 +31.7 Net revenue 19.84 26.18 +32.0 Other income 1.82 0.49 -73.3 Operating Expenses 15.89 18.25 +14.8 Net finance income / (cost) -0.02 0.02 NM Share of results of associates, net of tax -1 -
Slide 10: Financial Results for Group (1H2021 vs 1H2020)
Financial Results for Group (1H2021 vs 1H2020) S$ (Million) 1H2020 1H2021 YoY change (%) Revenue 77.03 106.12 +37.8 Net revenue 38.66 54.68 +41.4 Other income 2.38 1.44 -39.4 Operating Expenses 30.99 37.38 +20.6 Net finance income 0.14 0.05 -68.8 Share of results of associates, net of tax -0.07 -0.0
Slide 11: Results Overview for Group
Results Overview for Group S$ (Million) FY20171 FY2018 FY2019 FY2020 1H2021 Revenue 101.17 121.24 125.41 169.93 106.12 Net revenue 49.45 59.62 65.20 85.86 54.68 Other income 1.08 1.16 2.04 5.21 1.44 Operating expenses 42.19 49.78 56.06 65.29 37.38 Net finance income/(costs) 0.74 0.83 -0.06 0.03 0.05
Slide 12: PBT margin for Group (based on net revenue)
PBT margin for Group (based on net revenue) 40.0% 35.0% 34.2% 29.6% 30.0% 25.0% 20.7% 20.0% 17.7% 17.0% 15.0% 10.0% 5.0% 0.0% 2017 2018 2019 2020 1H2021 Note: 1. PBT margins (2017) were restated as a result of adoption of SFRS(I)s with effect from 1 January 2018 12
Slide 13: Return on Equity
Return on Equity 30.0% 28.0% 25.0% 21.8% 20.0% 15.0% 13.1% 10.9% 9.7% 10.0% 5.0% 0.0% 2017 2018 2019 2020 1H2021 13
Slide 14: Financial Indicators
Financial Indicators S$ (Million) FY2017 FY2018 FY2019 FY2020 1H2021 EBITA 12.96 16.44 17.49 32.98 23.10 Net Cash Position1 55.91 48.06 40.15 53.28 60.91 Operating Cash Flows 13.22 17.62 19.38 41.56 23.94 Capital Expenditure2 7.47 10.73 11.90 12.63 5.31 Net Current Assets 60.18 56.62 49.86 58.35 72.
Slide 15: Net Cash Position
Net Cash Position As at 30 Jun 2021 (S$ million) Cash and cash equivalents 41.59 Other investments¹ 19.32 Total cash and other investments 60.91 Less: Bank loans - Net Cash Position 60.91 (total cash and other investments net off bank loans) Gross Debt-to-Equity Ratio 0.00% Net Debt-to-Equity Ratio
Slide 16: Group Operating Cash Flows
Group Operating Cash Flows S$ million 45.00 41.56 40.00 35.00 30.00 25.00 23.94 19.38 20.00 17.62 15.00 13.22 10.00 5.00 0.00 2017 2018 2019 2020 1H2021 16
Slide 17: Capital Expenditure
Capital Expenditure S$ thousand 14,000 12,631 11,901 12,000 10,727 10,000 8,000 7,466 6,000 5,310 4,000 2,000 - 2017 2018 2019 2020 1H2021 17
Slide 18: Number of issued shares
Number of issued shares As at 31 Dec 2020 As at 30 Jun 2021 Total number of issued shares (excluding treasury shares and 272,407,635 276,525,963 subsidiary holdings) 18
Slide 19: Our Consolidated Financial Position
Our Consolidated Financial Position As at 31 Dec 20 As at 30 Jun 21 S$’000 S$’000 ASSETS Plant and Equipment 4,283 4,392 Right-of-use Assets 18,538 14,773 Intangible Assets and Goodwill 25,500 25,488 Associates 5,982 6,276 Other Investments 3,944 3,955 Deferred Tax Assets 1,099 1,444 Prepayments & O
Slide 20: Our Consolidated Financial Position
Our Consolidated Financial Position As at 31 Dec 20 As at 30 Jun 21 S$’000 S$’000 EQUITY Share Capital 66,976 67,323 Other Reserves 37,133 51,678 EQUITY ATTRIBUTABLE TO OWNERS OF THE COMPANY 104,109 119,001 Non-Controlling Interests (709) (808) TOTAL EQUITY 103,400 118,193 LIABILITIES Deferred Tax L
Slide 21: Second Interim Dividend for FY2021
Second Interim Dividend for FY2021 Second Interim Dividend for FY2021 - Schedule Dividend per share 1.10 cents per ordinary share Ex-dividend date 3 August 2021 Record date and time 4 August 2021 (5.00 pm) Payment date 17 August 2021 • For the second interim dividend for 2Q2021, the Directors declar
Slide 22: Performance Trend
SECTION II Performance Trend 22
Slide 23: AUA Breakdown: Markets & Products
AUA Breakdown: Markets & Products (as at 30 June 2021) AUA Breakdown By Markets AUA Breakdown By Products 3.7% 4.9% 9.3% 16.5% 17.5% 5.3% 69.5% 73.3% Singapore Hong Kong Unit Trusts Bonds Malaysia Others (China & India) Stocks & ETFs Cash Account 23
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 S$ million in the period from 2020 to 1H2021 was 69.4% 90 80 25.5 70 60 12.3 11.3 50 8.5 17.3 40 6.9 6.0 7.2 30 6.0 60.4 52.9 4.8 4.0 48.3 20 18.1
Slide 25: Net revenue as a ratio of average AUA
Net revenue as a ratio of average AUA 0.800% 0.700% 0.126% 0.139% 0.138% 0.225% 0.600% 0.218% 0.500% 0.400% 0.300% 0.606% 0.596% 0.594% 0.533% 0.471% 0.200% 0.100% 0.000% 2017 2018 2019 2020 1H2021 Recurring net revenue / AUA Non-recurring net revenue / AUA 25
Slide 26: Recurring and Non-Recurring Net Revenue
Recurring and Non-Recurring Net Revenue S$ (Million) FY2017 FY2018 FY2019 FY2020 1H2021 Recurring net revenue 40.95 48.32 52.94 60.39 37.41 Non-recurring net revenue 8.50 11.30 12.26 25.47 17.27 Total net revenue 49.45 59.62 65.20 85.86 54.68 YoY Change (%) FY2017 FY2018 FY2019 FY2020 1H2021 Recurri
Slide 27: Net Revenue – Geographical Segment
Net Revenue – Geographical Segment S$ (Million) FY2017 FY2018 FY2019 FY2020 1H2021 Singapore 34.77 39.30 41.95 56.33 36.72 Hong Kong 10.78 14.26 16.71 19.22 10.37 Malaysia 3.47 5.32 5.97 8.55 6.37 China 0.43 0.75 0.57 1.76 1.22 Group 49.45 59.62 65.20 85.86 54.68 YoY Change (%) FY2017 FY2018 FY2019
Slide 28: Net Revenue – B2B Business Segment
Net Revenue – B2B Business Segment B2B Net Revenue FY2017 FY2018 FY2019 FY2020 1H2021 (S$ Million) Recurring net revenue 28.85 33.88 37.12 42.34 25.92 Non-recurring net revenue 5.15 7.22 7.19 10.88 6.40 Total B2B net revenue 34.00 41.10 44.31 53.22 32.32 YoY Change (%) FY2017 FY2018 FY2019 FY2020 1H
Slide 29: Net Revenue – B2C Business Segment
Net Revenue – B2C Business Segment B2C Net Revenue FY2017 FY2018 FY2019 FY2020 1H2021 (S$ Million) Recurring net revenue 12.10 14.44 15.81 18.04 11.49 Non-recurring net revenue 3.35 4.08 5.08 14.60 10.87 Total B2C net revenue 15.45 18.52 20.89 32.64 22.36 YoY Change (%) FY2017 FY2018 FY2019 FY2020 1
Slide 30: Profit/Loss – Geographical Segment
Profit/Loss – Geographical Segment Profit/Loss YoY Change YoY Change (S$ Million) 2Q2020 2Q2021 (%) 1H2020 1H2021 (%) Singapore 5.03 7.05 +40.0 8.55 15.73 +83.9 Hong Kong 0.86 1.63 +89.1 2.44 3.22 +31.9 Malaysia 1.11 1.22 +10.2 1.59 2.74 +72.7 China (1.22) (1.40) +15.9 (2.30) (2.80) +21.9 Other1 -3
Slide 31: Profit/Loss – Geographical Segment
Profit/Loss – Geographical Segment Profit/Loss (S$ Million) FY20173 FY2018 FY2019 FY2020 1H2021 Singapore 10.62 11.86 9.96 21.32 15.73 Hong Kong 1.77 3.42 4.42 5.79 3.22 Malaysia 1.07 1.37 1.76 3.75 2.74 China (4.17) (4.60) (4.82) (4.88) (2.80) Other1 (0.33) 0.52 (0.05) (0.41) (0.08) Profit before t
Slide 32: Update: Hong Kong eMPF Platform Project
Update: Hong Kong eMPF Platform Project • The Group announced on 30 January 2021 that it has participated in the successful tender for the eMPF Platform project with PCCW Solutions as their Prime Subcontractor for Category C which includes MPF scheme operation services, transformation services and u
Slide 33: Update: Application for Digital Bank Licence in Malaysia
Update: Application for Digital Bank Licence in Malaysia • iFAST Corp has led a consortium in the submission of an application for a digital bank licence to Bank Negara Malaysia. • The digital bank consortium is a synergistic partnership between Malaysian partners comprising Koperasi Tentera, THZ Al
Slide 34: Progress of Individual Markets: Singapore
Progress of Individual Markets SINGAPORE • Net revenue for the Singapore operation increased by 36.0% YoY to S$17.6 million in 2Q2021 and 46.3% YoY to S$36.7 million in 1H2021. • The growth in net revenue was due to the robust growth rates in AUA, sales and net inflows for FSMOne.com, its B2C busine
Slide 35: Progress of Individual Markets: Singapore
Progress of Individual Markets SINGAPORE • For the first half of the year, sales for the Singapore operation grew 89% YoY. B2B division 2Q2021 sales grew 171% YoY and 6.4% QoQ. While Singapore went through the Heightened Alert phase for most parts of 2Q2021, wealth advisers and Institutional partner
Slide 36: Progress of Individual Markets: Hong Kong
Progress of Individual Markets HONG KONG • Net revenue for the Hong Kong operation increased by 18.7% YoY to S$5.2 million in 2Q2021 and 13.0% YoY to S$10.4 million in 1H2021. • The AUA of the Hong Kong operation grew 30.7% YoY and 6.3% QoQ to S$3.1 billion as at 30 June 2021. • The Hong Kong operat
Slide 37: Progress of Individual Markets: Hong Kong
Progress of Individual Markets HONG KONG • The increased participation in US stock trading by adviser-assisted clients and discretionary managers using the Hong Kong B2B platform led to a significant increase in the US Stocks and ETF turnover in 1H2021. • For the B2C division, Bond turnover grew 61.
Slide 38: Progress of Individual Markets: Malaysia
Progress of Individual Markets MALAYSIA • Net revenue for the Malaysia operation increased by 29.5% YoY to S$3.0 million in 2Q2021 and 65.1% YoY to S$6.4 million in 1H2021. • The AUA of the Malaysia operation increased 64.7% YoY and 9.0% QoQ to a record high of S$1.6 billion as at 30 June 2021 drive
Slide 39: Progress of Individual Markets: Malaysia
Progress of Individual Markets MALAYSIA • Impacted by the stricter movement controls measures in 2Q2021, the Malaysia B2B division saw a slowdown in Unit Trust sales compared to 1Q2021, but gross Unit Trust sales continued to grow 107% YoY in 2Q2021. • The Bond sales of the B2B division slowed down
Slide 40: Progress of Individual Markets: China
Progress of Individual Markets CHINA • Net revenue for the China operation grew 77.7% YoY to S$0.5 million in 2Q2021 and 130.7% YoY to S$1.2 million in 1H2021. • On a QoQ basis, the decline in net revenue can be attributed to the fall in non-recurring net revenue from upfront commission resulted fro
Slide 41: Progress of Individual Markets: India
Progress of Individual Markets INDIA • As at 30 June 2021, iFAST Corp holds an effective 39.40% 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. • The AUA of the India opera
Slide 42: Appendices
SECTION III Appendices 42
Slide 43: Business Overview
Business Overview • iFAST Corporation Ltd. is a wealth management fintech platform with assets under administration (AUA) of S$17.54 billion as at 30 June 2021 (stock code: AIY). • Main business divisions: o Business-to-Consumer (B2C): FSMOne.com (formerly “Fundsupermart”) a multi-product online wea
Slide 44: Milestones
Milestones Launch of iFAST Platform Acquired a stake in the holding Services (B2B) in Hong Kong 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 P
Slide 45: Milestones
Milestones Launch of US stockbroking in HK iFAST SG received the “Fastest Growing iFAST Corp won the "Best Investor SGX-ST Member” award for the second Relations - Silver Award" in the small consecutive year cap category at the Singapore Launch of revamped FSMOne mobile Corporate Awards (SCA
Slide 46: iFAST Fintech Ecosystem
iFAST Fintech Ecosystem (as at 30 Jun 2021) Connecting All to Help Investors Invest Globally and Profitably B2C Fundsupermart.com / FSMOne.com / Fund Houses Bondsupermart Holds relevant licences in 5 markets FA Companies Banks/ Over Bond Dealers 620,000 customer accounts Over 520 companies, in 5 Fin
Slide 47: The iFAST Fintech Ecosystem
The iFAST Fintech Ecosystem • Products and services: ─ Unit trusts (over 8,600 funds from over 270 fund houses) ─ Bonds (over 1,400 direct bonds) ─ Stocks & ETFs – in 3 markets (Singapore, Hong Kong and US) ─ Discretionary portfolio management services • Over 520 financial institutions and other cor
Slide 48: 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 49: Breakdown of Net Revenue (FY2020)
Breakdown of Net Revenue (FY2020) Fintech Solutions IT fees, Others, 1.4% 2.8% FX Margin, 7.4% Transaction Fees/Commission Income (Other Products), 12.8% Trailer Fee, 42.3% Transaction Fees/Commission Income (UT and Portfolio Management Services), 5.5% Net Interest Income Arising from Clients' AUA,
Slide 50: Licences Held and Products and Services Available
Licences Held and Products and Services Available (as at 30 June 2021) LICENCES HELD : • Fund Distributor Qualification [CSRC] • Associate Member of AMAC • Member of SAMC • Registered Private Fund Manager [AMAC] PRODUCTS AVAILABLE : UT LICENCES HELD: • Type 1: Dealing in Securities [SFC] • Type 4: A
Slide 51: 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 52: Net revenue and operating expenses as a ratio of average AUA for Group
Net revenue and operating expenses as a ratio of average AUA for Group 0.800% 0.732% 0.735% 0.731% 0.757% 0.689% 0.700% 0.625% 0.614% 0.629% 0.606% 0.596% 0.594% 0.576% 0.600% 0.533% 0.500% 0.471% 0.471% 0.400% 0.300% 0.200% 0.100% 0.000% 2017 2018 2019 2020 1H2021 Net revenue / AUA Recurring net re
Slide 53: 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 53
Slide 54: 1H2021: Activities & Achievements
1H2021: Activities & Achievements (L-R): iFAST Corp successfully held its first hybrid AGM featuring live two-way Q&A and real time voting in April; FSM SG held its annual ETFestival 2021 and FSM MY held its first ever ETF Day 2021 in May, featuring insightful presentations and discussions by indust
Slide 55: 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.