Ifs Capital Ltd. · SGX:I49
Ifs Capital — Q1 2014 Earnings Presentation
36 slides from Ifs Capital's earnings presentation, May 12, 2014
Slide 1: Financial Statements and Related Announcement: First Quarter Results
Financial Statements and Related Announcement::First Quarter Results Page 1 of 1 Financial Statements and Related Announcement::First Quarter Results Issuer & Securities Issuer/ Manager IFS CAPITAL LIMITED Securities IFS CAPITAL LIMITED - SG1A35000706 - I49 Announcement Details Announcement Title Fi
Slide 2: Table of Contents
(Registra ation no: 198700 0827C) Firstt Quarter Unaudited U F Financial Sta atements an nd Dividend d Announce ement for tthe Period Ended 31 March h 2014 TAB BLE OF CO ONTENTS Ite em Description n P Page No. Noo. 1(a a)(i) Conso olidated Stattement of Pro ofit or Loss and Statemen nt of 2-3 Comppr
Slide 3: Consolidated Statement of Profit or Loss for Three Months Ended 31 March
(Regisstration no: 1987 700827C) F First Quarter Unaudited d Financial S Statements a and Dividend d Announce ement for the Period En nded 31 Marc ch 2 2014 1 1(a)(i) Consolidated Statem ment of Profitt or Loss for tthe Three Months Ended 31 3 March Note e 1st Q Quarter 1st Quarte er 1(a) 20014 2013
Slide 4: Consolidated Statement of Comprehensive Income
Consolidated Statement of Comprehensive Income for the Three Months Ended 31 March Note 1st Quarter 1st Quarter 1(a) 2014 2013 +/(-) (ii) S$’000 S$’000 % Profit for the period 1,173 1,780 (34.1) Other comprehensive income Items that are or may be reclassified subsequently to profit or loss Net chang
Slide 5: Explanatory Notes to Consolidated Statement of Profit or Loss
1(a)(ii) Explanatory Notes to Consolidated Statement of Profit or Loss The following items have been included in arriving at Group net profit for the period: 1st Quarter 1st Quarter 2014 2013 +/(-) S$’000 S$’000 % Investment income - dividend, fee and interest income 358 295 21.4 - (loss)/gain on di
Slide 6: Explanatory Notes to Statement of Profit or Loss (cont'd)
1(a)(ii) Explanatory Notes to Consolidated Statement of Profit or Loss (cont’d) Comments on Major Consolidated Statement of Profit or Loss Variances (a) The decrease in net interest income was due mainly to lower factoring volume and lower loan assets outstanding. (b) The decline in gross written pr
Slide 7: Earnings Per Ordinary Share
1(a)(iii) Earnings Per Ordinary Share Group 1st Quarter 1st Quarter 2014 2013 Earnings per share - on weighted average number of ordinary shares in issue 0.58 cents 0.93 cents - on fully diluted basis 0.58 cents 0.93 cents Earnings per ordinary share on existing issued share capital is computed base
Slide 8: Statement of Financial Position
1(b)(i) Statement of Financial Position Group Company 31/03/2014 31/12/2013 31/03/2014 31/12/2013 Note S$’000 S$’000 S$’000 S$’000 Non-current assets Property, plant and equipment 17,610 17,639 15,529 15,685 Intangible assets 265 348 161 176 Subsidiaries - - 67,703 67,703 Other investments (a) 33,69
Slide 9: Comments on Major Statement of Financial Position Variances
Comments on Major Statement of Financial Position Variances (a) The increase in other investments under non-current assets was due mainly to the Group’s additional participation in the existing property-related funds and ECICS’ purchase of debt securities. The decrease at Company level resulted main
Slide 10: Group's Borrowings and Net Asset Value
1(b)(ii) Group’s Borrowings As at 31/03/2014 As at 31/12/2013 S$’000 S$’000 (Unsecured) (Unsecured) Amount repayable in one year or less, or on demand 189,558 190,639 Amount repayable after one year 30,793 33,591 220,351 224,230 Details of any collateral Nil. 1(b)(iii) Net Asset Value Group Company
Slide 11: Consolidated Statement of Cash Flows
1(c) Consolidated Statement of Cash Flows for the Three Months Ended 31 March 1st Quarter 1st Quarter 2014 2013 Note S$’000 S$’000 Cash flows from operating activities Profit for the period 1,173 1,780 Adjustments for: Amortisation of intangible assets and held-to-maturity debt securities 100 132 Ne
Slide 12: Consolidated Statement of Cash Flows (cont'd)
1(c) Consolidated Statement of Cash Flows for the Three Months Ended 31 March (cont’d) 1st Quarter 1st Quarter 2014 2013 Note S$’000 S$’000 Cash flows from investing activities Proceeds from sale of property, plant and equipment 6 41 Purchase of property, plant and equipment (215) (32) Purchase of i
Slide 13: Explanatory Notes to Statement of Cash Flows
Explanatory Notes to Statement of Cash Flows (a) Net cash from operating activities The net cash from operating activities in 1st Quarter 2014 (“1Q 2014”) was due mainly to repayment of factoring receivables, partly offset by drawdown of loans, advances, hire purchase and leasing receivables. In com
Slide 14: Statement of Changes in Equity
1(d)(i) Statement 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 2013 At 1 January 2013 * 8
Slide 15: Changes in Company's Share Capital
1(d)(ii) Changes in Company’s Share Capital Since 31 December 2013, there was no change in the issued share capital of the Company. The share capital of the Company as at 31 March 2014 was 150,387,866 ordinary shares. There were no outstanding convertibles as at 31 March 2014 (31 March 2013: Nil). 1
Slide 16: Changes in Accounting Policies and Review of Group Performance
5 Changes in Accounting Policies (cont’d) - FRS 112 Disclosure of Interests in Other Entities - Amendments to FRS 32 Offsetting Financial Assets and Financial Liabilities - Amendments to FRS 36 Recoverable Amount Disclosures for Non-Financial Assets - Amendments to FRS 39 Novation of Derivatives and
Slide 17: Variance from Prospect Statement, Prospects and Dividend
7 Variance from Prospect Statement The current announced results are in line with the prospect statement as disclosed in the Group’s 2013 full year results announcement dated 24 February 2014. 8 Prospects The Group will continue to grow its factoring and loan businesses in Singapore and the region.
Slide 18: 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 9 May 2014 17
Slide 19: Confirmation By The Board Pursuant to Rule 705(4)
© 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 attent
Slide 20: First Quarter 2014 Unaudited Results Presentation
IFS Capital Limited IFS Capital Limited First Quarter 2014 Unaudited Results Presentation 12 May 2014 1
Slide 21: Contents and Disclaimer
IFS Capital Limited Contents Slide 1. Highlights 3-4 2. (a) Group Statement of Profit or Loss 5 (b) Group Statement of Comprehensive Income 6 (c) Group Operating Expenses 7 3. Key Financial Ratios 8 4. Group Performance Review 9 - 11 5. Results of Subsidiaries - Regional Operations 12 - 13 - ECICS 1
Slide 22: Highlights
IFS Capital Limited Highlights Group’s operating income for 1Q 2014 of $8.6m was $159,000 or 2% lower compared to 1Q 2013. Higher net earned premium revenue of $0.9m (1Q 2013: $0.6m). Higher investment income of $1.1m (1Q 2013: $0.5m). Higher operating expenses of $5.3m (1Q 2013: $5.0m). H
Slide 23: Highlights (cont'd)
IFS Capital Limited Highlights (cont’d) EPS (cents) : 0.58 (1Q 2013: 0.93) NAV per Share (cents) : 85.6 (FY 2013: 84.8) Stable net interest margin at around 6.1%. 4
Slide 24: Group Statement of Profit or Loss
IFS Capital Limited Group Statement of Profit or Loss 1Q 1Q +/(-) ($’000) 2014 2013 % Net Interest Income 4,417 5,154 (14.3) Net Earned Premium Revenue ^ 881 590 49.3 Non-Interest Income 3,252 2,965 9.7 Total Income 8,550 8,709 (1.8) Operating Expenses (5,311) (4,976) 6.7 Operating Profit before Net
Slide 25: Group Statement of Comprehensive Income
IFS Capital Limited Group Statement of Comprehensive Income 1Q 1Q +/(-) ($’000) 2014 2013 % Profit for the period 1,173 1,780 (34.1) Other comprehensive income Items that are or may be reclassified subsequently to profit or loss Net change in fair value of available-for-sale financial assets 176 509
Slide 26: Group Operating Expenses
IFS Capital Limited Group Operating Expenses 1Q 1Q +/(-) ($’000) % % 2014 2013 % Commission 146 2.8 155 3.1 (5.8) Business Development 198 3.7 171 3.4 15.8 Staff Costs 3,411 64.2 3,038 61.1 12.3 Depreciation & Amortisation 343 6.5 402 8.1 (14.7) General Administration 1,213 22.8 1,210 24.3 0.2 Total
Slide 27: Key Financial Ratios
IFS Capital Limited 1Q 1Q +/(-) Key Financial Ratios 2014 2013 % Return on Ave Equity – After Tax (%) 0.7 1.0 (30.0) Earnings per Share (cts) 0.58 0.93 (37.6) Net Asset Value per Share (cts) 85.6 95.0 (9.9) Leverage (times) 2.02 2.05 (1.5) Gross Gearing (times) 1.71 1.76 (2.8) 8
Slide 28: Group Performance Review – 1Q 2014 vs 1Q 2013
IFS Capital Limited Group Performance Review – 1Q 2014 vs 1Q 2013 Group’s operating income of $8.6m was $159,000 or 2% lower compared to 1Q 2013 due to: - lower net interest income on lower factoring volume and lower loan assets outstanding, - lower fee and commission due mainly to lower underwrit
Slide 29: Group Performance Review (cont'd)
IFS Capital Limited Group Performance Review – 1Q 2014 vs 1Q 2013 (cont’d) Group’s operating expenses up $335,000 or 7% to $5.3m mainly on staff costs. After taking into account higher net claims incurred and higher allowances for loan losses and impairment of investments, net profit after tax f
Slide 30: Group Performance Review (cont'd)
IFS Capital Limited Group Performance Review – 1Q 2014 vs 1Q 2013 (cont’d) Singapore operations (including ECICS) reported a 35% increase in net profit to $278,000 from $206,000 in 1Q 2013 mainly attributable to: - higher net earned premium revenue; - higher investment income; and - lower allowanc
Slide 31: Regional Operations – Indonesia, Malaysia & Thailand
IFS Capital Limited Regional Operations – Indonesia, Malaysia & Thailand 1Q 1Q +/(-) ($’000) 2014 2013 % Net Interest Income 2,618 2,842 (7.9) Non-Interest Income 1,454 1,430 1.7 Operating Expenses (1,955) (1,938) 0.9 Operating Profit before Allowances 2,117 2,334 (9.3) Allowances (962) (335) 187.2
Slide 32: Regional Operations (cont'd)
IFS Capital Limited Regional Operations (cont’d) - Indonesia, Malaysia & Thailand Thailand subsidiary reported a net profit after NCI of $0.8m, down 19% (1Q 2013: $1.0m) on lower revenue and higher allowances for loan losses. Indonesia subsidiary posted a higher net profit of $58,000 (1Q 2013: $
Slide 33: ECICS Limited
IFS Capital Limited ECICS Limited 1Q 1Q +/(-) ($’000) 2014 2013 % Gross Written Premiums 2,727 3,172 (14.0) Net Earned Premium Revenue 894 600 49.0 Fee and Investment Income 492 864 (43.1) Claims Incurred (141) (65) 116.9 Operating Expenses (1,164) (1,041) 11.8 Operating Profit before Allowances 81
Slide 34: ECICS Limited
IFS Capital Limited ECICS Limited Gross written premiums declined 14% to $2.7m largely due to lower bonds and guarantee business. After accounting for premiums ceded to reinsurers, net earned premium revenue increased 49% to $0.9m on lower change in gross provision for unexpired risks due to hig
Slide 35: Prospects
IFS Capital Limited Prospects The Group will continue to grow its factoring and loan businesses in Singapore and the region. While the Singapore market is stable, the Group is mindful of the uncertainty and challenges in Thailand, a significant source of revenue. The Group has refocused its op
Slide 36: The End – Thank You
IFS Capital Limited THE END THANK YOU 17