Ifs Capital Ltd. · SGX:I49
Ifs Capital — Q3 2013 Earnings Presentation
38 slides from Ifs Capital's earnings presentation, Nov 11, 2013
Slide 1: Financial Statement and Related Announcement
FINANCIAL STATEMENT AND RELATED ANNOUNCEMENT Page 1 of 1 Print this page Third Quarter and Nine Months Results * Financial Statement And Related Announcement * Asterisks denote mandatory information Name of Announcer * IFS CAPITAL LIMITED Company Registration No. 198700827C Announcement submitted on
Slide 2: Table of Contents
(Registra ation no: 198700 0827C) Third Quarter A And Nine Mo onths Unauddited Financ cial Statements and Div vidend Anno ouncement for the t Period EEnded 30 Sep ptember 201 13 TAB BLE OF CO ONTENTS Ite em Description n P Page No. Noo. 1(a a)(i) Conso olidated Inco ome Stateme ent and Statement of
Slide 3: Consolidated Income Statement for Third Quarter and Nine Months
(Regisstration no: 1987 700827C) TThird Quarteer And Nine e Months Unaudited Financial Statements and Dividend Announcem ment for tthe Period Ended E 30 September 201 13 1 1(a)(i) Consolidated Incom me Statement for the Third Quarter And Nine Months s Ended 30 Se eptember Note 3rd Qtr 3rd Qtr 9 mont
Slide 4: Consolidated Statement of Comprehensive (Loss)/Income
Consolidated Statement of Comprehensive (Loss)/Income for the Third Quarter And Nine Months Ended 30 September Note 3rd Qtr 3rd Qtr 9 months 9 months 1(a) 2013 2012 +/(-) 2013 2012 +/(-) (ii) S$’000 S$’000 % S$’000 S$’000 % Profit for the period 3,252 2,535 28.3 503 6,458 (92.2) Other comprehensive
Slide 5: Explanatory Notes to Consolidated Income Statement
1(a)(ii) Explanatory Notes to Consolidated Income Statement The following items have been included in arriving at Group net profit for the period: 3rd Qtr 3rd Qtr 9 months 9 months 2013 2012 +/(-) 2013 2012 +/(-) S$’000 S$’000 % S$’000 S$’000 % Investment income - dividend, fee and interest income 2
Slide 6: Explanatory Notes to Income Statement (cont'd)
1(a)(ii) Explanatory Notes to Consolidated Income Statement (cont’d) Comments on Major Consolidated Income Statement Variances (a) The increase in net interest income for 3rd Quarter 2013 (“3Q 2013”) and nine months of 2013 (“9M 2013”) was mainly due to growth in the Group’s financing business volum
Slide 7: Tax, Translation Differences and Earnings Per Share
(i) The lower tax expense for 3Q 2013 was due mainly to the write back of overprovision of prior years’ tax. For 9M 2013, the lower tax expense resulted mainly from deferred tax credit due to losses incurred by the Singapore operations. (j) The foreign currency translation differences arose from the
Slide 8: Statements of Financial Position
1(b)(i) Statements of Financial Position Group Company 30/09/2013 31/12/2012 30/09/2013 31/12/2012 Note S$’000 S$’000 S$’000 S$’000 Non-current assets Property, plant and equipment 17,904 18,572 15,825 16,202 Intangible assets 435 680 193 250 Subsidiaries - - 63,679 63,679 Other investments (a) 35,7
Slide 9: Comments on Major Statements of Financial Position Variances
Comments on Major Statements of Financial Position Variances (a) The increase in other investments under non-current assets was due to the Group’s participation in convertible loan facility and property related funds while the decrease at Company level resulted from the disposal of quoted equity sec
Slide 10: Group's Borrowings and Net Asset Value
1(b)(ii) Group’s Borrowings As at 30/09/2013 As at 31/12/2012 S$’000 S$’000 (Unsecured) (Unsecured) Amount repayable in one year or less, or on demand 207,121 206,794 Amount payable after one year 36,838 43,132 243,959 249,926 Details of any collateral Nil. 1(b)(iii) Net Asset Value Group Company 30
Slide 11: Consolidated Statement of Cash Flows
1(c) Consolidated Statement of Cash Flows for the Third Quarter And Nine Months Ended 30 September 3rd Qtr 3rd Qtr 9 months 9 months 2013 2012 2013 2012 Note S$’000 S$’000 S$’000 S$’000 Cash flows from operating activities Profit for the period 3,252 2,535 503 6,458 Adjustments for: Amortisation of
Slide 12: Consolidated Statement of Cash Flows (cont'd)
1(c) Consolidated Statement of Cash Flows for the Third Quarter And Nine Months Ended 30 September (cont’d) 3rd Qtr 3rd Qtr 9 months 9 months 2013 2012 2013 2012 Note S$’000 S$’000 S$’000 S$’000 Cash flows from investing activities Proceeds from sale of property, plant and equipment (6) - 35 62 Purc
Slide 13: Explanatory Notes to Statement of Cash Flows
Explanatory Notes to Consolidated Statement of Cash Flows (a) Net cash from/(used in) operating activities The net cash from operating activities in 3Q 2013 and 9M 2013 was mainly due to higher repayment of loans, advances, hire purchase and leasing receivables and lower drawdown of factoring receiv
Slide 14: Statements of Changes in Equity
1(d)(i) Statements of Changes in Equity Attributable to owners of the Company Fair Non- Share Capital value Translation Accumulated controlling Total capital reserve reserve reserve profits Total interests equity Group S$’000 S$’000 S$’000 S$’000 S$’000 S$’000 S$’000 S$’000 2012 At 1 January 2012 88
Slide 15: Changes in Equity (cont'd) and Share Capital
1(d)(i) Statements of Changes in Equity (cont’d) Share Fair value Accumulated Total capital reserve profits equity Company S$’000 S$’000 S$’000 S$’000 2012 At 1 January 2012 88,032 (20) 22,511 110,523 Total comprehensive income for 1st half Profit for 1st half - - 3,567 3,567 Other comprehensive inc
Slide 16: Treasury Shares, Audit and Accounting Policies
1(d)(iv) Sales, Transfers, Disposal, Cancellation and/or use of Treasury Shares Not applicable. 2 Audit The figures have not been audited or reviewed by the Company’s auditors. 3 Auditors’ Report Not applicable. 4 Accounting Policies Except as disclosed in paragraph 5, the Group has applied the same
Slide 17: Review of Group Performance
also helped by lower tax expense but partly offset by lower net earned premium revenue, net claims incurred, higher operating expenses and allowances for loan losses. 9 Months of 2013 (“9M 2013”) versus 9 Months of 2012 (“9M 2012”) Group’s total operating income grew 7% year-on-year to $28.9 million
Slide 18: Prospects
8 Prospects Recognising the continued uncertainties surrounding the global and regional economies, the Group will maintain a disciplined stance on its business growth while continuing to prudently manage its resources and risks. As diversification will improve its resilience, the Group will continue
Slide 19: Interested Person Transactions Mandate
11 Interested Person Transactions Mandate There is no general mandate obtained from shareholders on Interested Person Transactions. By Order of the Board Chionh Yi Chian Company Secretary 8 November 2013 18
Slide 20: Confirmation by the Board Pursuant to Rule 705(4)
ie) IFS Capital Limited (Registration no: 198700827C) Confirmation By The Board Pursuant to Rule 705(4) of the Listing Manual On behalf of the Board of Directors of IFS Capital Limited (“the Company”), we, the undersigned, hereby confirm to the best of our knowledge that nothing has come to the atte
Slide 21: Third Quarter and Nine Months 2013 Unaudited Results Presentation
IFS Capital Limited IFS Capital Limited Third Quarter and Nine Months 2013 Unaudited Results Presentation 11 November 2013 1
Slide 22: Contents and Disclaimer
IFS Capital Limited Contents Slide 1. Highlights 3–4 2. (a) Group Income Statement 5 (b) Group Statement of Comprehensive (Loss)/Income 6 (c) Group Operating Expenses 7 3. Key Financial Ratios 8 4. Group Performance Review 9 - 10 5. Results of Subsidiaries - Regional Operations 11 - 12 - ECICS 13 -
Slide 23: Highlights
IFS Capital Limited Highlights 3Q 2013 vs 3Q 2012 3Q 2013 Group performance turnaround from loss incurred in 2Q 2013. Net profit after tax rose 28% to $3.3 million compared to $2.5 million for 3Q 2012. Better performance led by: - higher investment income on higher gain on disposal of quoted equ
Slide 24: Highlights (cont'd)
IFS Capital Limited Highlights (cont’d) 9M 2013 vs 9M 2012 Regional subsidiaries continue to report higher net profits after non- controlling interest (“NCI”), up 24% y-o-y, contributed mainly by Thailand. With net claims incurred compared to net claims reversal in 2012 and higher allowances for
Slide 25: Group Income Statement
IFS Capital Limited Group Income Statement 9 months 9 months +/(-) (S$’000) 2013 2012 % Net Interest Income 15,952 14,721 8.4 Net Earned Premium Revenue * 2,189 3,148 (30.5) Non-Interest Income 10,811 9,147 18.2 Total Income 28,952 27,016 7.2 Operating Expenses (15,718) (15,970) (1.6) Operating Prof
Slide 26: Group Statement of Comprehensive (Loss)/Income
IFS Capital Limited Group Statement of Comprehensive (Loss)/Income 9 months 9 months +/(-) (S$’000) 2013 2012 % Profit for the period 503 6,458 (92.2) Other comprehensive loss Net change in fair value of available-for-sale (235) (119) 97.5 financial assets Net change in fair value of available-for-s
Slide 27: Group Operating Expenses
IFS Capital Limited Group Operating Expenses 9 months 9 months +/(-) (S$’000) % % 2013 2012 % Commission 538 3.4 172 1.1 NM Business Development 595 3.8 576 3.6 3.3 Staff Costs 9,431 60.0 9,827 61.5 (4.0) Depreciation & Amortisation 1,103 7.0 1,523 9.5 (27.6) General Administration 4,051 25.8 3,872
Slide 28: Key Financial Ratios
IFS Capital Limited 9 months 9 months Key Financial Ratios 2013 2012 +/(-)% Return on Ave Equity – After Tax (%) (0.5) 4.1 NM (Loss)/Earnings per Share (cts) (0.4) 3.7 NM Net Asset Value per Share (cts) 87.5 89.6 (2.3) Leverage (times) 2.14 2.0 7.0 Gross Gearing (times) 1.85 1.84 0.5 8
Slide 29: Group Performance Review – 9M 2013 vs 9M 2012
IFS Capital Limited Group Performance Review – 9M 2013 vs 9M 2012 Total operating income grew 7% to $28.9 million from higher net interest income and non-interest income. Net interest income up 8% mainly due to growth in financing business volume. Non-interest income rose 18% to $10.8 million
Slide 30: Group Performance Review (cont'd)
IFS Capital Limited Group Performance Review – 9M 2013 vs 9M 2012 (cont’d) Group loan assets including factoring receivables were $355 million as at 30 September 2013, a 1% decrease against the bases of $359 million as at 30 September 2012 and 31 December 2012 due to higher repayments of loan acco
Slide 31: Regional Operations – Indonesia, Malaysia & Thailand
IFS Capital Limited Regional Operations – Indonesia, Malaysia & Thailand 9 months 9 months +/(-) (S$’000) 2013 2012 % Net Interest Income 9,007 7,703 16.9 Non-Interest Income 4,991 4,265 17.0 Operating Expenses (6,121) (5,796) 5.6 Operating Profit before Allowances 7,877 6,172 27.6 Allowances (1,965
Slide 32: Regional Operations (cont'd)
IFS Capital Limited Regional Operations (cont’d) - Indonesia, Malaysia & Thailand All overseas subsidiaries continued to be profitable. Contributed total net profit after tax and after NCI - $3.5 million, up 24% from $2.8 million for 9M 2012. Higher operating income driven by higher factoring vo
Slide 33: ECICS Limited
IFS Capital Limited ECICS Limited 9 months 9 months (S$’000) +/(-) % 2013 2012 Gross Written Premiums 9,759 6,487 50.4 Net Earned Premium Revenue 2,230 3,211 (30.6) Fee and Investment Income 2,500 2,610 (4.2) Claims (Incurred)/Reversal (1,649) 164 NM Operating Expenses (3,400) (3,287) 3.4 Operating
Slide 34: ECICS Limited (cont'd)
IFS Capital Limited ECICS Limited (cont’d) Gross written premiums up 50% to $9.8 million from increased insurance business. Net earned premium revenue declined 30% to $2.2 million on higher provisioning for unexpired risks reserve set aside for increased bond business. Due to higher provision
Slide 35: Prospects
IFS Capital Limited Prospects Recognising the continued uncertainties surrounding the global and regional economies, the Group will maintain a disciplined stance on its business growth while continuing to prudently manage its resources and risks. As diversification will improve its resilience, t
Slide 36: Prospects (cont'd)
IFS Capital Limited Prospects (cont’d) Insurance business (ECICS): o Commenced writing Contractors’ All Risks and Work Injury Compensation Insurance. o These two products complement construction bond business and will broaden its revenue base. o Despite continued keen competition, current pipeline
Slide 37: Group Net Gearing
IFS Capital Limited Group Net Gearing Net Gearing (Net of cash held in IFS excluding ECICS) • Sharp drop in gearing 3.00 since 2005. Global • Decrease in gearing financial despite consolidation of 2.50 crisis - drop Thailand. in Gearing • Recent increase in 2.00 Reversal gearing reflective of increa
Slide 38: The End – Thank You
IFS Capital Limited THE END THANK YOU 18