Slide 1: 3Q2022 & 9M2022 Results Presentation
iFAST CORPORATION LTD. 3Q2022 & 9M2022 Results Presentation 26 OCT 2022
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 ▪ 3Q2022 (Jul-Sep 2022) & 9M2022 (Jan-Sep 2022) Results Pg. 8 SECTION I Financial Results ▪ Financial Indicators ▪ Interim Dividends ▪ Hong Kong ePension Update Pg. 23 ▪ iFAST Global Bank Updates SECTION II Business Update ▪ Bright Spots in 3Q2022 ▪ Getting Ready for 202
Slide 4: Key Summary
Key Summary • As at 30 September 2022, the Group’s assets under administration (“AUA”) declined 7.6% YoY and 3.9% QoQ to S$16.98 billion as a result of sharp declines in most equity and bond markets, as well as the Group’s decision to exit the onshore platform service business in India. • It is wort
Slide 5: Key Summary
Key Summary • 2022 will be a year whereby while the Group’s overall revenue may be flat, the Group’s net profit will see a substantial decline compared to 2021. This happens as the Group incurs an impairment charge for its India business (recognised in 2Q2022), initial operating losses for iFAST Glo
Slide 6: Group AUA declined 7.6% YoY and 3.9% QoQ to S$16.98 billion
Group AUA declined 7.6% YoY and 3.9% QoQ to S$16.98 billion as at 30 Sep 2022 S$ million AUA (as at 30 Sep 2022): S$16.98 billion1 $20,000 $18,000 $16,000 $14,000 $12,000 $10,000 $8,000 $6,000 $4,000 $2,000 $- Mar-09 Mar-11 Mar-13 Mar-15 Mar-17 Mar-19 Mar-21 Mar-01 Sep-01 Mar-02 Sep-02 Mar-03 Sep-03
Slide 7: Net Inflows & Gross Unit Trusts (UT) subscription
Net Inflows & Gross Unit Trusts (UT) subscription S$ million Net Inflows S$ million Gross UT Subscriptions $4,000 $8,000 $3,745 $7,052 $3,500 $7,000 $3,160 $2,991 $3,000 $6,000 $5,647 $5,543 $2,500 $5,000 $4,238 $2,000 $1,861 $4,000 $3,053 $1,500 $3,000 $2,870 $976 $1,000 $786 $2,000 $500 $1,000 $-
Slide 8: Financial Results
SECTION I Financial Results 8
Slide 9: Financial Results for Group (3Q2022 vs 3Q2021)
Financial Results for Group (3Q2022 vs 3Q2021) S$ (Million) 3Q2021 3Q20221 YoY change (%) Revenue 55.682 53.50 -3.9 Total net revenue 30.462 30.07 -1.3 Other income -0.57 0.58 N.M. Operating expenses 20.65 27.57 +33.6 Share of results of associates, net of tax -0.05 -0.07 +48.0 Profit before tax 9.0
Slide 10: Financial Results for Group (9M2022 vs 9M2021)
Financial Results for Group (9M2022 vs 9M2021) S$ (Million) 9M2021 9M20221 YoY change (%) Revenue 162.162 160.34 -1.1 Total net revenue 85.502 88.48 +3.5 Other income 0.88 1.24 +41.2 Operating expenses 58.03 76.05 +31.1 Impairment loss related to an associate - -5.20 N.M. Share of results of associa
Slide 11: Results Overview for Group
Results Overview for Group S$ (Million) FY2018 FY2019 FY2020 FY2021 9M20221 Revenue2 122.25 126.61 170.76 216.90 160.34 Total net revenue2 60.45 65.91 86.64 113.91 88.48 Other income 1.16 2.04 5.21 0.49 1.24 Operating expenses 49.78 56.06 65.29 77.68 76.05 Interest expenses on lease liabilities - -0
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% 15.4%1 15.0% 10.0% 5.0% 0.0% 2018 2019 2020 2021 9M2022 Notes: 1. Includes the new banking operation for 9M2022 and excludes impairment loss of S$5.2 million related to India Business recognised in 2Q20
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% 5.9%1 5.0% 0.0% 2018 2019 2020 2021 9M2022 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 9M2022 EBITA 16.44 17.49 32.98 45.01 21.543 Net Cash Position1 48.06 40.15 53.28 59.29 94.73 Operating Cash Flows 17.62 19.38 41.56 46.53 4.92 Capital Expenditure2 10.73 11.90 12.63 21.62 8.20 Net Current Assets 56.62 49.86 58.35 68.03 12
Slide 15: Net Cash Position
Net Cash Position As at 31 Dec 2021 As at 30 Sep 2022 (S$ million) (S$ million) Cash and Cash Equivalents 44.10 135.51 Other Investments¹ 15.19 24.51 Less: Customers’ Deposits - (65.29) Total Cash 59.29 94.73 Less: Bank Loans - - Net Cash Position 59.29 94.73 Gross Debt-to-Equity Ratio 0.00% 0.00% N
Slide 16: Group Operating Cash Flows
Group Operating Cash Flows S$ million 50.00 46.53 45.00 41.56 40.00 35.00 30.00 25.00 19.38 20.00 17.62 15.00 10.00 4.92 5.00 0.00 2018 2019 2020 2021 9M2022 16
Slide 17: Capital Expenditure
Capital Expenditure S$ million 25.00 21.62 22.00 20.00 15.00 12.63 11.90 10.73 10.00 5.00 0.00 2018 2019 2020 2021 2022 Forecast Note: 1. Capital Expenditure stood at S$8.05 million in 9M2022. 17
Slide 18: Number of issued shares
Number of issued shares As at 31 Dec 2021 As at 30 Sep 2022 Total number of issued shares (excluding treasury shares and subsidiary 276,946,913 292,919,713 holdings) 18
Slide 19: Our Consolidated Financial Position
Our Consolidated Financial Position As at 31 Dec 21 As at 30 Sep 22 S$’000 S$’000 ASSETS Plant and Equipment 7,552 6,375 Right-of-use Assets 14,198 12,571 Intangible Assets and Goodwill 32,623 65,479 Associates 6,552 3,519 Other Investments 2,919 15,410 Deferred Tax Assets 2,448 2,557 Contract Costs
Slide 20: Our Consolidated Financial Position
Our Consolidated Financial Position As at 31 Dec 21 As at 30 Sep 22 S$’000 S$’000 EQUITY Share Capital 67,577 171,004 Reserves 61,076 52,270 EQUITY ATTRIBUTABLE TO OWNERS OF THE COMPANY 128,653 223,274 Non-Controlling Interests (1,018) 7,223 TOTAL EQUITY 127,635 230,497 LIABILITIES Deferred Tax Liab
Slide 21: Held under Trust
Held under Trust As at 31 Dec 21 As at 30 Sep 22 S$’000 S$’000 HELD UNDER TRUST Client Bank Accounts 973,592 1,080,814 Client Ledger Balances (973,592) (1,080,814) - - • Certain subsidiaries in the Group receive and hold monies deposited by clients and other institutions in the course of the conduct
Slide 22: Third Interim Dividend for FY2022
Third Interim Dividend for FY2022 Third Interim Dividend for FY2022 - Schedule Dividend per share 1.30 cents per ordinary share Ex-dividend date 7 November 2022 Record date and time 8 November 2022 (5.00 pm) Payment date 18 November 2022 • For the third interim dividend for 3Q2022, the Directors dec
Slide 23: Business Update
Section II Business Update 23
Slide 24: Hong Kong ePension Division Updates
Hong Kong ePension Division Updates • The Group has previously announced that the Group is now preparing for the ePension business which will become operational from 2023, and expects the ePension division to start contributing more substantially from 3Q2023 onwards. • The Hong Kong ePension divisio
Slide 25: iFAST Global Bank Updates
iFAST Global Bank Updates • Following the acquisition in March 2022, iFAST Global Bank (“iGB”) has started working on building new systems, products and services, including online account opening and multi-currency deposits. iGB targets to roll out the new products and services progressively over th
Slide 26: Bright Spots in 3Q2022: Recurring Net Revenue and Bonds Turnover
Bright Spots in 3Q2022: Recurring Net Revenue and Bonds Turnover • Even with challenging market conditions impacting AUA and overall revenue numbers in 3Q2022, apart from positive net inflow in both 3Q2022 and 9M2022, improving recurring net revenue and bonds turnover are the other bright spots in t
Slide 27: Bonds Turnover
Bonds Turnover S$ million 350 300 250 200 150 100 50 0 27
Slide 28: Getting Ready for 2023: Revenues and Profitability to Reach New Highs
Getting Ready for 2023: Revenues and Profitability to Reach New Highs • The Group has been positioning itself for opportunities arising from a more globalised wealth management and digital banking business model, and has continued to invest and prepare for its next phase of growth under its Four-Yea
Slide 29: Performance Trend
SECTION III Performance Trend \ 29
Slide 30: AUA Breakdown: Markets & Products
AUA Breakdown: Markets & Products (as at 30 Sep 2022) AUA Breakdown By Markets AUA Breakdown By Products 2.7% 6.2% 11.0% 20.2% 13.7% 5.6% 68.0% 72.6% Singapore Hong Kong Unit Trusts Bonds Malaysia Others (China & UK) Stocks & ETFs Cash Account & Deposits 30
Slide 31: 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 9M2022 was 69.9% 120 100 34.5 80 25.5 26.2 60 12.3 11.3 8.5 40 6.9 6.0 78.7 7.2 60.4 62.3 6.0 52.9 4.
Slide 32: 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% 0.660% 0.139% 0.138% 0.225% 0.600% 0.629% 0.614% 0.203% 0.195% 0.500% 0.576% 0.567% 0.400% 0.456% 0.300% 0.596% 0.594% 0.533% 0.462% 0.464% 0.200% 0.181% 0.209% 0.100% 0.12
Slide 33: Profit/Loss - Geographical Segment
Profit/Loss - Geographical Segment Profit/Loss YoY Change YoY Change (S$ Million) 3Q2021 3Q2022 (%) 9M2021 9M2022 (%) Singapore 6.08 4.37 -28.1 21.81 13.30 -39.0 Hong Kong 3.14 2.12 -32.3 6.35 6.01 -5.5 Malaysia 1.37 0.92 -32.7 4.11 3.17 -22.8 China (1.40) (1.78) +27.8 (4.20) (5.28) +25.9 UK - (2.17
Slide 34: Profit/Loss - Geographical Segment
Profit/Loss - Geographical Segment Profit/Loss (S$ Million) FY2018 FY2019 FY2020 FY2021 9M2022 Singapore 11.86 9.96 21.32 28.43 13.30 Hong Kong 3.42 4.42 5.79 8.39 6.01 Malaysia 1.37 1.76 3.75 5.39 3.17 China (4.60) (4.82) (4.88) (5.82) (5.28) UK - - - - (3.13) Other1 0.52 (0.05) (0.41) (0.35) 0.33
Slide 35: Total Net Revenue - Geographical Segment
Total Net Revenue - Geographical Segment S$ (Million) FY2018 FY2019 FY2020 FY2021 9M2022 Singapore 39.30 41.95 56.33 73.24 52.68 Hong Kong 14.26 16.71 19.22 24.41 18.04 Malaysia 5.32 5.97 8.55 13.16 10.18 China 0.75 0.57 1.76 2.41 1.43 UK - - - - 6.15 Group 59.62 65.20 85.86 113.22 88.48 YoY Change
Slide 36: 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 9M20221 3Q20221 Recurring net revenue2 49.15 53.65 61.17 79.38 62.28 21.97 Non-recurring net 11.30 12.26 25.47 34.53 26.20 8.10 revenue Total net revenue2 60.45 65.91 86.64 113.91 88.48
Slide 37: 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 9M20221 3Q20221 Recurring net revenue2 49.15 53.65 61.17 79.38 61.92 21.73 Non-recurring net 11.30 12.26 25.47 34.53 20.42 6.12 revenue Total net revenue2 60.45 65.91 86.64 113.91 82.34
Slide 38: Net Revenue - B2B Business Segment
Net Revenue1 - B2B Business Segment B2B Net Revenue FY2018 FY2019 FY2020 FY2021 9M2022 (S$ Million) Recurring net revenue 33.88 37.12 42.34 55.73 43.36 Non-recurring net revenue 7.22 7.19 10.88 16.42 12.44 Total B2B net revenue 41.10 44.31 53.22 72.15 55.80 YoY Change (%) FY2018 FY2019 FY2020 FY2021
Slide 39: Net Revenue - B2C Business Segment
Net Revenue1 - B2C Business Segment B2C Net Revenue FY2018 FY2019 FY2020 FY2021 9M2022 (S$ Million) Recurring net revenue 14.44 15.81 18.04 22.96 16.92 Non-recurring net revenue 4.08 5.08 14.60 18.11 7.98 Total B2C net revenue 18.52 20.89 32.64 41.07 24.90 YoY Change (%) FY2018 FY2019 FY2020 FY2021
Slide 40: Progress of Individual Markets: Singapore
Progress of Individual Markets SINGAPORE • Net revenue for the Singapore operation was down 0.2% YoY but grew 7.7% QoQ to S$18.20 million in 3Q2022, while in 9M2022, net revenue fell 4.4% YoY to S$52.68 million. • The AUA of the Singapore operation fell 1.9% QoQ and 5.3% YoY to S$12.32 billion as at
Slide 41: Progress of Individual Markets: Singapore
Progress of Individual Markets SINGAPORE • To improve the client experience when transacting in bonds, the iGM division developed an all-new bond trading interface for iGM clients over the quarter, providing enhanced price transparency, real-time trade updates, as well as access to new bond segments
Slide 42: Progress of Individual Markets: Hong Kong
Progress of Individual Markets HONG KONG • Net revenue for the Hong Kong operation fell 25.8% YoY but grew 5.3% QoQ to S$5.97 million in 3Q2022, and fell 2.1% YoY to S$18.04 million in 9M2022. • The AUA of Hong Kong operation fell 4.8% QoQ and 21.2% YoY to S$2.32 billion as at 30 Sep 2022. • While t
Slide 43: Progress of Individual Markets: Hong Kong
Progress of Individual Markets HONG KONG • The AUA of the Hong Kong B2C FSMOne.com division fell 9.2% QoQ and 29.6% YoY, mainly driven by both redemptions and decline in market value across investment products. • Investor sentiment remained weak, with the Hang Seng Index (HSI) declining 21%. On a Qo
Slide 44: Progress of Individual Markets: Malaysia
Progress of Individual Markets MALAYSIA • Net revenue for the Malaysia operation fell 7.3% YoY but grew 11.1% QoQ to S$3.23 million in 3Q2022, though on a YoY basis, net revenue was up 1.9% to S$10.18 million in 9M2022. • While the Malaysia operation AUA declined 1.2% YoY, overall AUA increased 10.7
Slide 45: Progress of Individual Markets: Malaysia
Progress of Individual Markets MALAYSIA • B2C Malaysia AUA fell by 4.3% QoQ despite challenging market conditions. Net inflows for unit trusts remained positive despite slowing sales momentum in 3Q2022. • The AUA of Stocks & ETF grew 7.4% and 9.7% QoQ respectively in 3Q2022. The Malaysia B2C platfor
Slide 46: Progress of Individual Markets: China
Progress of Individual Markets CHINA • Net revenue for China operation decreased 35.3% YoY but kept flat QoQ to S$0.45 million in 3Q2022, net revenue fell 27.5% in 9M2022 to S$1.43 million. • The AUA of China operations fell 8.8% QoQ and 21.0% YoY in 3Q2022 due to volatility in the equity markets an
Slide 47: Progress of Individual Markets: UK
Progress of Individual Markets UK • Following the acquisition on 28 March 2022, iFAST Global Bank contributed net revenue of S$2.22 million in 3Q2022, and recorded a S$2.17 million loss in the same quarter. • As iGB will be focusing on its digital banking strategy, with the closure of physical branc
Slide 48: Appendices
SECTION IV Appendices 48
Slide 49: Business Overview
Business Overview • iFAST Corporation Ltd. is a wealth management fintech platform with assets under administration (AUA) of S$16.98 billion as at 30 Sep 2022 (stock code: AIY). • Main business divisions: o Business-to-Consumer (B2C): FSMOne.com (formerly “Fundsupermart”) a multi-product online weal
Slide 50: 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 51: 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 52: Recap of iFAST's Four-Year Plan
Recap of iFAST’s Four-Year Plan 1. 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. 2. Accelerate Hong Kong Growth: Substantially accelerate the grow
Slide 53: Guidance on Hong Kong Targets (Updated on Apr 2022)
Guidance on Hong Kong Targets (Updated on 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 54: iFAST Fintech Ecosystem
iFAST Fintech Ecosystem Connecting All to Help Investors Invest Globally and Profitably (as at 30 Sep 2022) Online Account Multi-Currency Opening Deposits Digital Bank Payment / Banking as a Remittance Service (BaaS) Over 760,000 B2C Fundsupermart.com / FSMOne.com / customer accounts Bondsupermart F
Slide 55: The iFAST Fintech Ecosystem
The iFAST Fintech Ecosystem • Products and services: ─ Unit trusts (over 11,000 funds from over 290 fund houses) ─ Bonds (over 1,750 direct bonds) ─ Stocks & ETFs – in 5 markets (Singapore, Hong Kong, US, Malaysia & China A Shares) ─ Discretionary portfolio management services • Over 580 financial i
Slide 56: The Future of Wealth Management and Digital Banking
The Future of Wealth Management and Digital Banking • 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 connectivity to
Slide 57: 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 58: 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 59: Licences Held and Products and Services Available
Licences Held and Products and Services Available (as at 30 September 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 60: 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 61: 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 61
Slide 62: 3Q2022: Activities & Achievements
3Q2022: Activities & Achievements Events to help investors navigate volatile market conditions in 2H2022: (Left Top) Mid-Year Review 2022 organised by FSMOne.com SG and iGM SG; (Left Bottom) FSMOne Choice Awards 2022 organised by FSMOne SG (Top L-R) 2H2022 Investment Outlook organised by FSMOne.com
Slide 63: Thank You!
TO HELP INVESTORS AROUND THE WORLD INVEST GLOBALLY AND PROFITABLY THANK YOU! For more information, please visit: www.ifastcorp.com