Slide 1: 4Q2016 and FY2016 Results Presentation
4Q2016 and FY2016 Results Presentation 17 February 2017 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 4Q2016 (Oct - Dec 2016) and FY2016 (Jan – Dec 2016) results Financial ratios Financial position Proposed final dividend II Performance Trends Assets under Administration (AUA) Net sales and subscription excluding switching Recurring ne
Slide 4: Key Summary
Key Summary • Assets Under Administration (AUA) increased 8.1% YoY to hit a record high of S$6.1 billion as at 31 December 2016 • However, a dip in AUA during the first half of 2016 resulted in recurring net revenue growing by only 0.2% for the year • The contribution from the Bond / ETFs / Stocks d
Slide 5: Group AUA grew 8.1% YoY to record S$6.10 billion
Group AUA grew 8.1% YoY to record S$6.10 billion S$ million AUA (as at 31 Dec 2016): S$6.10 billion¹ $7,000 $6,000 $5,000 $4,000 $3,000 $2,000 $1,000 $- Dec-01 Dec-02 Dec-03 Dec-04 Dec-05 Dec-06 Dec-07 Dec-10 Dec-11 Dec-12 Dec-13 Dec-14 Dec-15 Dec-16 Dec-08 Dec-09 Jun-02 Jun-03 Jun-04 Jun-05 Jun-06
Slide 6: Key Summary
Key Summary • Going forward, the Group believes that it will benefit from the efforts put in the last two years in strengthening the platform’s capabilities; this includes the Singapore operation, which remains the largest revenue and profit contributor to date • The Group expects the growth of AUA
Slide 7: Key Summary
Key Summary • The Directors believe that the Group has a strong balance sheet. Total Cash and other investments stood at S$54.59 million as at 31 December 2016 • Similar to the Dividend Guidance for FY2016, the Group’s Dividend Guidance for FY2017 is: “For FY2017, our Directors intend to recommend a
Slide 8: Section I: Financial Results
PRIVATE & CONFIDENTIAL. NOT FOR EXTERNAL CIRCULATION. CO. REG. NO. R200007899C Section I: Financial Results PRIVATE & CONFIDENTIAL. NOT FOR EXTERNAL CIRCULATION. CO. REG. NO. R200007899C 8
Slide 9: Presentation of Group’s Results
Presentation of Group’s Results Presentation of Group’s results (including and excluding China) • In view of the guidance we have provided on our China operation (that the China business would be expected to have a negative impact on the Group’s overall operating profit on a consolidated basis in 20
Slide 10: Financial Results for Group (excluding China operation) (4Q2016 vs 4Q2015)
Financial Results for Group (excluding China operation) (4Q2016 vs 4Q2015) S$ (Million) 4Q2015 4Q2016 YoY change (%) Revenue 20.74 21.28 +2.6 Net revenue 10.16 10.85 +6.8 Other income 0.42 0.47 +12.9 Impairment loss on investment - 0.68 NM in financial assets Operating expenses 7.67 8.30 +8.2 Net fi
Slide 11: Financial Results for Group (including China operation) (4Q2016 vs 4Q2015)
Financial Results for Group (including China operation) (4Q2016 vs 4Q2015) S$ (Million) 4Q2015 4Q2016 YoY change (%) Revenue 20.74 21.55 +3.9 Net revenue 10.16 10.98 +8.1 Other income 0.42 0.47 +12.9 Impairment loss on investment - 0.68 NM in financial assets Operating expenses 8.01 9.50 +18.6 Net f
Slide 12: Financial Results for Group (excluding China operation) (FY2016 vs FY2015)
Financial Results for Group (excluding China operation) (FY2016 vs FY2015) YoY • With adverse volatile market FY2015 FY2016 conditions in 1H2016, the results S$ (Million) change (%) started improving in 2H2016, with Revenue 85.34 79.89 -6.4 net revenue declining 2.6% YoY to S$40.46 million in FY2016
Slide 13: Financial Results for Group (including China operation) (FY2016 vs FY2015)
Financial Results for Group (including China operation) (FY2016 vs FY2015) YoY FY2015 FY2016 • With the Group continuing its efforts S$ (Million) change (%) to grow the China Business which is Revenue 85.34 80.60 -5.6 still at the initial investment phase, Net revenue 41.53 40.69 -2.0 expenses have
Slide 14: Results Overview for Group (excluding China operation)
Results Overview for Group (excluding China operation) FY2012 FY2013¹ FY2014² FY2015 FY2016 S$ (Million) Revenue 56.41 69.47 78.35 85.34 79.89 Net revenue 26.29 31.58 36.68 41.53 40.46 Other income 0.08 0.16 0.24 1.53 1.88 Impairment loss on investment - - - - 0.68 in financial assets Operating expe
Slide 15: Results Overview for Group (including China operation)
Results Overview for Group (including China operation) S$ (Million) FY2012 FY2013¹ FY2014² FY2015 FY2016 Revenue 56.41 69.47 78.35 85.34 80.60 Net revenue 26.29 31.58 36.68 41.53 40.69 Other income 0.08 0.16 0.24 1.53 1.88 Impairment loss on investment - - - - 0.68 in financial assets Operating expe
Slide 16: 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% 31.1% 30.7% 29.6% 30% 30% 26.0% 26.0% 26.0% 25% 25% 20% 20% 16.7% 15.0% 15.0% 15% 15% 10% 10% 5% 5% 0% 0% 2012 2013 2014 2015 2016 2012 2013 2014 2015 2016 Notes: 1. The PBT margins in 2
Slide 17: Financial Ratios
Financial Ratios S$ (Million) FY2012 FY2013 FY2014 FY2015 FY2016 Operating 2.33 7.13 10.18 14.18 5.63 Cashflows Capital 0.21 1.57 2.34 5.45 6.61 Expenditure 31 Dec 31 Dec 31 Dec 31 Dec 31 Dec S$ (Million) 2012 2013 2014 2015 2016 Net Current 20.95 20.70 63.16 68.32 64.39 Assets 31 Dec 31 Dec 31 Dec
Slide 18: Cash position
Cash position As at 31 Dec 2015 As at 31 Dec 2016 (S$ million) (S$ million) Cash and cash equivalents 29.52 22.46 Other investments¹ 31.96 32.13 Total cash and other investments 61.48 54.59 Note: 1. Other investments represent investments in financial assets. PRIVATE & CONFIDENTIAL. NOT FOR EXTERNAL
Slide 19: Number of issued shares
Number of issued shares As at 31 Dec 2015 As at 31 Dec 2016 Total number of issued shares 260,977,301 262,223,415 (excluding treasury shares) PRIVATE & CONFIDENTIAL. NOT FOR EXTERNAL CIRCULATION. CO. REG. NO. R200007899C 19
Slide 20: Our Consolidated Financial Position as at 31 Dec 2016
Our Consolidated Financial Position as at 31 Dec 2016 S$’000 NON-CURRENT ASSETS Fixed Assets 2,187 Intangible Assets 10,375 Associates 1,829 Others 313 14,704 CURRENT ASSETS Trade & other receivables 24,171 Prepayments & others 1,662 Other Investments 32,127 Cash & cash equivalents 22,464 80,424 TOT
Slide 21: Our Consolidated Financial Position as at 31 Dec 2016 – cont’d
Our Consolidated Financial Position as at 31 Dec 2016 – cont’d S$’000 CURRENT LIABILITIES Trade & other payables 15,524 Finance Lease 4 Current tax payable 504 16,032 NON-CURRENT LIABILITIES Deferred Tax 481 Finance Lease 19 500 EQUITY Share Capital 64,147 Accumulated profits 15,617 Other reserves (
Slide 22: Proposed Final Dividend for FY2016 & Dividend Guidance for FY2017
Proposed Final Dividend for FY2016 & Dividend Guidance for FY2017 Proposed Final Dividend for FY2016 - Schedule Dividend per share 0.75 cents per ordinary share Ex-dividend date 18 April 2017 Payment date 3 May 2017 • The Group’s Dividend Guidance is: “For FY2016, our Directors intend to recommend a
Slide 23: 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 23
Slide 24: Group AUA Trends
Group AUA Trends Singapore & Others: 72.4% Hong Kong: 21.6% Malaysia: 6.0% • The Group’s AUA as at 31 Dec 2016 includes the AUA contribution from India Business, as well as the AUA contribution from the China Business (which was soft launched in March 2016) • The AUA contribution from the India Busi
Slide 25: Net sales & Subscription ex-switching
Net sales & Subscription ex-switching S$ million S$ million Net sales¹ Subscription ex-switching² $600 $2,000 $501 $1,670 $500 $458 $1,547 $1,574 $1,600 $396 $1,365 $400 $1,200 $300 $940 $235 $800 $193 $200 $400 $100 $- $- 2012 2013 2014 2015 2016 2012 2013 2014 2015 2016 Notes: 1. Net sales stood a
Slide 26: Net revenue breakdown between recurring and non-recurring sources
Net revenue breakdown between recurring and non-recurring sources Average contribution from recurring net revenue as opposed to non-recurring net revenue in the S$ million period from 2012 to 2016 was 83.0% 45 40 6.9 6.0 35 7.2 30 6.0 25 4.0 4.8 20 18.1 12.3 4.6 34.6 34.7 15 4.0 29.5 25.6 22.3 10 7.
Slide 27: Net revenue as a ratio of average AUA
Net revenue as a ratio of average AUA 0.800% 0.700% 0.144% 0.122% 0.105% 0.134% 0.101% 0.600% 0.500% 0.400% 0.300% 0.591% 0.615% 0.609% 0.571% 0.574% 0.200% 0.100% 0.000% 2012 2013 2014 2015 2016 Recurring net revenue / AUA Non-recurring net revenue / AUA PRIVATE & CONFIDENTIAL. NOT FOR EXTERNAL CIR
Slide 28: 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% 0.711% 0.700% 0.672% 0.615% 0.607% 0.591% 0.600% 0.571% 0.572% 0.574% 0.570%¹ 0.528% 0.534% 0.513% 0.500% 0.400% 0.300% 0.200% 0.100% 0.000% 2012 2013 2014 2015 2016 Net rev
Slide 29: 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% 0.714% 0.700% 0.672% 0.640%¹ 0.615% 0.609% 0.591% 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 2016 Net rev
Slide 30: Recurring and Non-Recurring Net Revenue
Recurring and Non-Recurring Net Revenue S$ (Million) FY2012 FY2013 FY2014 FY2015 FY2016 Recurring net revenue 22.34 25.62 29.48 34.64 34.71 Non-recurring net revenue 3.95 5.96 7.20 6.89 5.98 Total net revenue 26.29 31.58 36.68 41.53 40.69 YoY Change (%) FY2012 FY2013 FY2014 FY2015 FY2016 Recurring n
Slide 31: Net Revenue – Geographical Segment
Net Revenue – Geographical Segment S$ (Million) FY2012 FY2013 FY2014 FY2015 FY2016 Singapore 21.33 24.10 25.72 30.04 29.54 Hong Kong 4.39 6.50 9.48 9.55 8.66 Malaysia 0.57 0.98 1.48 1.94 2.26 China - - - - 0.23 Group 26.29 31.58 36.68 41.53 40.69 YoY Change (%) FY2012 FY2013 FY2014 FY2015 FY2016 Sin
Slide 32: Net Revenue – B2B Business Segment
Net Revenue – B2B Business Segment B2B Net Revenue FY2012 FY2013 FY2014 FY2015 FY2016 (S$ Million) Recurring net revenue 16.03 18.16 21.09 24.50 24.49 Non-recurring net revenue 2.11 3.06 4.46 4.09 3.86 Total B2B net revenue 18.14 21.22 25.55 28.59 28.35 YoY Change (%) FY2012 FY2013 FY2014 FY2015 FY2
Slide 33: Net Revenue – B2C Business Segment
Net Revenue – B2C Business Segment B2C Net Revenue FY2012 FY2013 FY2014 FY2015 FY2016 (S$ Million) Recurring net revenue 6.31 7.46 8.39 10.15 10.22 Non-recurring net revenue 1.84 2.90 2.74 2.79 2.12 Total B2C net revenue 8.15 10.36 11.13 12.94 12.34 YoY Change (%) FY2012 FY2013 FY2014 FY2015 FY2016
Slide 34: Profit/Loss – Geographical Segment
Profit/Loss – Geographical Segment Profit/Loss After Tax (S$ Million) FY2012 FY2013 FY2014 FY2015 FY2016 Singapore 5.64 7.81¹ 9.00² 11.21 9.05⁴ Hong Kong (1.19) 0.40 2.10 1.65 0.53 Malaysia (1.19) (0.59) (0.09) 0.24 0.32 Others³ - - (0.01) (0.02) (0.16) Net profit (excluding China operation) 3.26 7.
Slide 35: FY2016 Results & Outlook - Singapore
FY2016 Results & Outlook - Singapore • Singapore’s net profit declined by 19.3% YoY to S$9.05 million (excluding impairment loss of S$0.68 million recognised in 4Q2016) in FY2016, as net revenue declined 1.7% YoY to S$29.54 million in FY2016 due to volatile global financial markets (especially in 1H
Slide 36: FY2016 Results & Outlook – Hong Kong
FY2016 Results & Outlook – Hong Kong • Hong Kong’s net profit declined 67.9% YoY in FY2016 to S$0.53 million. The significant decline in Hong Kong’s profitability mainly resulted from the adverse impact of the sharp sell-down in China/Hong Kong markets at the start of 2016 • Hong Kong’s net revenue
Slide 37: FY2016 Results & Outlook – Malaysia
FY2016 Results & Outlook – Malaysia • Malaysia’s net profit after tax rose 31.7% YoY to S$0.32 million in FY2016 • Malaysia’s net profit declined 9.6% YoY to S$0.10 million in 4Q2016, and its net revenue rose 16.7% YoY to S$2.26 million in FY2016 and increased 11.7% YoY to S$0.61 million in 4Q2016 •
Slide 38: FY2016 Results & Outlook – China
FY2016 Results & Outlook – China • The China business was soft launched in March 2016; the China operation’s loss stood at S$3.61 million in FY2016 and its net revenue stood at S$0.26 million in FY2016 • The China Business has continued to build its team of wealth advisers, as part of its ‘platform-
Slide 39: 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 39
Slide 40: Business Overview
Business Overview • We are an Internet-based investment products distribution platform with assets under administration (AUA) of S$6.1 billion as at 31 December 2016 (stock code: AIY) • Two main business divisions: – Business-to-Consumer (B2C) platform, Fundsupermart (including its new FSMOne multi-
Slide 41: 2000 – 2015 Milestones
2000 – 2015 Milestones 2000 2008 2014 Launch of • Launch of iFAST Platform • Incorporation of iFAST Platform Fundsupermart.com (B2C) Services (B2B) in Hong Kong Services (Shenzhen) Qianhai in in Singapore • Launch of Fundsupermart.com China (B2C) and iFAST Platform Services • Listing on SGX-ST Mainb
Slide 42: 2016 Milestones
2016 Milestones January May & June • Completion of acquisition of a • Joint Venture With PC International September & October stockbroking company in Hong (HK) Limited to incorporate PC iFAST • Organised “What Every Investor Kong Holding (SG) Pte. Ltd. Should Know Before Investing in Retail • Annual
Slide 43: 2016 Milestones & Activities
2016 Milestones & Activities Launch of brand new FSMOne – Screen Captures (Homepage, Bonds Page, MAPS Page, Stocks Page) (L-R) Official Opening of China Office in Shanghai; FSMOne Launch Workshop (L-R) SCS Challenge for Children 2016 (Singapore); iWALK –Oxfam Brisbane; What and Where to Invest 2016
Slide 44: Business Model
Business Model PRIVATE & CONFIDENTIAL. NOT FOR EXTERNAL CIRCULATION. CO. REG. NO. R200007899C 44
Slide 45: 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 46: 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 47: 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 47