Slide 1: 3Q2015 and 9M2015 Results Presentation
3Q2015 and 9M2015 Results Presentation 29 October 2015 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 3Q2015 (Jul-Sep 2015) and 9M2015 (Jan-Sep 2015) results Financial ratios Financial position Interim dividend II Performance Trends Assets under Administration (AUA) Net sales and subscription excluding switching Recurring net revenue, non-recurring
Slide 4: Key summary
Key summary • Net profit fell 0.5% YoY to S$2.95 million in 3Q2015 and rose 21.3% YoY to S$9.24 million in 9M2015 respectively • Recurring net revenue rose 7.5% YoY in 3Q2015 to S$8.45 million Net profit, and rose 19.3% YoY in 9M2015 to S$25.97 million; non-recurring net revenue declined 19.3% YoY i
Slide 5: Section I: Financial Results
PRIVATE & CONFIDENTIAL. NOT FOR EXTERNAL CIRCULATION. CO. REG. NO. R200007899C Section I: Financial Results PRIVATE & CONFIDENTIAL. NOT FOR EXTERNAL CIRCULATION. CO. REG. NO. R200007899C 5
Slide 6: Financial Results (3Q2015 vs 3Q2014)
Financial Results (3Q2015 vs 3Q2014) S$ (Million) 3Q2014 3Q2015 YoY change (%) Revenue 22.07 20.54 -6.9 Net revenue 9.95 10.14 +1.9 Other income 0.03 0.29 +781.8 Expenses 7.08 7.58 +7.1 Net finance income 0.03 0.25 +861.5 Share of result of associate, net of tax - 0.01 N.M. Profit before tax 2.93 3.
Slide 7: Financial Results (9M2015 vs 9M2014)
Financial Results (9M2015 vs 9M2014) S$ (Million) 9M2014 9M2015 YoY change (%) Revenue 58.60 64.60 +10.3 Net revenue 27.33 31.38 +14.8 Other income 0.21 1.11 +430.1 Expenses 19.65 23.08 +17.4 Net finance income 0.07 0.54 +633.8 Share of result of associate, net of tax - (0.02) N.M. Profit before tax
Slide 8: Key financial highlights (FY2011-9M2015)
Key financial highlights (FY2011-9M2015) FY2011 FY2012 FY2013¹ FY2014² 9M2015 Net revenue (S$ million) 25.20 26.29 31.58 36.68 31.38 Net revenue (YoY change) +15.7% +4.4% +20.1% +16.1% +14.8% Ased Net profit (S$ million) 2.77 3.74 7.86 10.51 9.24 Net profit (YoY change) N.M. +35.0% +110.2% +33.7% +2
Slide 9: Results Overview (FY2011-9M2015)
Results Overview (FY2011-9M2015) S$ (Million) FY2011 FY2012 FY2013¹ FY2014² 9M2015 Revenue 61.12 56.41 69.47 78.35 64.60 Net revenue 25.20 26.29 31.58 36.68 31.38 Other income 0.06 0.08 0.16 0.24 1.11 Expenses 22.81 22.40 23.58 26.14 23.08 Net finance income (0.08) (0.03) 0.03 0.10 0.54 Share of res
Slide 10: PBT margin (based on net revenue)
PBT margin (based on net revenue) 35% 31.7% 29.6%² 30% 25.9%¹ 25% 20% 15.0% 15% 10% 9.4% 5% 0% FY2011 FY2012 FY2013 FY2014 9M2015 Notes: 1. Excluding one-off gain of S$0.62 million on distribution to owners of the Company in October 2013 2. Excluding IPO expenses of S$1.95 million in December 2014 P
Slide 11: Financial Ratios
Financial Ratios S$ (Million) FY2011 FY2012 FY2013 FY2014 9M2015 Operating 1.40 2.33 7.13 10.18 9.98 Cashflows Capital 1.71 0.21 1.57 2.34 3.08 Expenditure 31 Dec 31 Dec 31 Dec 31 Dec 30 Sep S$ (Million) 2011 2012 2013 2014 2015 Net Current 21.92 20.95 20.70 63.16 68.56 Assets 31 Dec 31 Dec 31 Dec 3
Slide 12: Cash position
Cash position As at 31 Dec 2014 As at 30 Sep 2015 (S$ million) (S$ million) Cash and cash equivalents 35.39 23.75 Other investments¹ 22.02 38.32 Total cash and other investments 57.41² 62.07 Notes: 1. Other investments represent investments in available-for-sale financial assets. 2. The Group's cash
Slide 13: Number of issued shares
Number of issued shares As at 31 Dec 2014 As at 30 Sep 2015 Total number of issued shares 256,225,334¹ 260,898,301 Notes: 1. The Group's total number of issued shares as at 31 December 2014 do not include the issuance of 3,280,000 new shares on 6 January 2015, following the exercise of over- allotme
Slide 14: Our Consolidated Financial Position as at 30 Sep 2015
Our Consolidated Financial Position as at 30 Sep 2015 S$’000 NON-CURRENT ASSETS Fixed Assets 1,893 Intangible Assets 3,848 Associate 371 Others 605 6,717 CURRENT ASSETS Trade & other receivables 18,722 Prepayments & others 1,289 Other Investments 38,318 Cash & cash equivalents 23,754 82,083 TOTAL AS
Slide 15: Our Consolidated Financial Position as at 30 Sep 2015 – cont’d
Our Consolidated Financial Position as at 30 Sep 2015 – cont’d S$’000 CURRENT LIABILITIES Trade & other payables 12,784 Current tax payable 744 13,528 NON-CURRENT LIABILITIES Deferred Tax 203 Other Payables - 203 EQUITY Share Capital 62,517 Accumulated profits 16,392 Other reserves (3,840) EQUITY AT
Slide 16: Interim dividend
Interim dividend Third interim dividend for 2015 - Schedule Dividend per share 0.68 cents per ordinary share 4 Nov 2015 Ex-dividend date 20 Nov 2015 Payment date • Our Directors proposed a third interim dividend for 2015 based on approximately 60.2% of our net profit (excluding exceptional items) fo
Slide 17: 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 17
Slide 18: Group AUA
Group AUA S$ million AUA (as at 30 Sep 2015): S$5.42 billion $7,000 $6,000 $5,000 $4,000 $3,000 $2,000 $1,000 B2B: 74.7% and B2C: 25.3% $- Sep-00 Mar-01 Sep-01 Mar-02 Sep-02 Mar-03 Sep-03 Mar-04 Sep-04 Mar-05 Sep-05 Mar-06 Sep-06 Mar-07 Sep-07 Mar-08 Sep-08 Mar-09 Sep-09 Mar-10 Sep-10 Mar-11 Sep-11
Slide 19: Group AUA Trends
Group AUA Trends Singapore: 72.8% Hong Kong: 23.0% Malaysia: 4.2% • AUA grew 5.5% YoY to S$5.42 billion (as at 30 September 2015) • AUA grew at a 10-year CAGR of 19.5% (as at 30 September 2015) • AUA from the B2B and B2C segments grew 6.3% and 3.1% YoY respectively (as at 30 September 2015) PRIVATE
Slide 20: Net sales & subscription ex-switching
Net sales & subscription ex-switching S$ million S$ million Net sales Subscription ex-switching $600 $2,000 $501 $500 $1,547 $458 $1,600 $1,365 $1,303 $400 $1,200 $300 $285 $947 $940 $800 $193 $200 $400 $100 $55 $- $- 2011 2012 2013 2014 9M2015 2011 2012 2013 2014 9M2015 PRIVATE & CONFIDENTIAL. NOT
Slide 21: Net revenue breakdown between recurring and non-recurring sources
Net revenue breakdown between recurring and non-recurring sources Average contribution from recurring net revenue as opposed to non-recurring net revenue in the S$ million period from FY2011 to 9M2015 was 82.0% 40 35 31.4 30 25 20 15 10 6.9 4.3 5 0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2
Slide 22: Net revenue as a ratio of average AUA
Net revenue as a ratio of average AUA 0.800% 0.700% 0.144% 0.128% 0.101% 0.134% 0.600% 0.125% 0.500% 0.400% 0.300% 0.574% 0.591% 0.615% 0.571% 0.526% 0.200% 0.100% 0.000% FY2011 FY2012 FY2013 FY2014 9M2015 Recurring net revenue / AUA Non-recurring net revenue / AUA Note: 1. The ratio for 9M2015 has
Slide 23: Net revenue and operating expenses as a ratio of average AUA
Net revenue and operating expenses as a ratio of average AUA 0.800% 0.743% 0.735% 0.707% 0.700% 0.672% 0.650% 0.615% 0.589% 0.591% 0.600% 0.571%0.572% 0.574% 0.528% 0.547% 0.526% 0.524% 0.500% 0.400% 0.300% 0.200% 0.100% 0.000% FY2011 FY2012 FY2013 FY2014 9M2015 Net revenue / AUA Recurring net reven
Slide 24: Recurring and Non-Recurring Net Revenue
Recurring and Non-Recurring Net Revenue S$ (Million) FY2011 FY2012 FY2013 FY2014 9M2015 Recurring net revenue 20.38 22.34 25.62 29.48 25.97 Non-recurring net revenue 4.82 3.95 5.96 7.20 5.41 Total net revenue 25.20 26.29 31.58 36.68 31.38 YoY Change (%) FY2011 FY2012 FY2013 FY2014 9M2015 Recurring n
Slide 25: Net Revenue – Geographical Segment
Net Revenue – Geographical Segment S$ (Million) FY2011 FY2012 FY2013 FY2014 9M2015 Singapore 21.15 21.33 24.10 25.72 22.64 Hong Kong 3.65 4.39 6.50 9.48 7.35 Malaysia 0.40 0.57 0.98 1.48 1.39 Group 25.20 26.29 31.58 36.68 31.38 YoY Change (%) FY2011 FY2012 FY2013 FY2014 9M2015 Singapore +13.0 +0.9 +
Slide 26: Net Revenue – B2B Business Segment
Net Revenue – B2B Business Segment B2B Net Revenue FY2011 FY2012 FY2013 FY2014 9M2015 (S$ Million) Recurring net revenue 14.10 16.03 18.16 21.09 18.37 Non-recurring net revenue 2.68 2.11 3.06 4.46 3.19 Total B2B net revenue 16.78 18.14 21.22 25.55 21.56 YoY Change (%) FY2011 FY2012 FY2013 FY2014 9M2
Slide 27: Net Revenue – B2C Business Segment
Net Revenue – B2C Business Segment B2C Net Revenue FY2011 FY2012 FY2013 FY2014 9M2015 (S$ Million) Recurring net revenue 6.28 6.31 7.46 8.39 7.60 Non-recurring net revenue 2.14 1.84 2.90 2.74 2.22 Total B2C net revenue 8.42 8.15 10.36 11.13 9.82 YoY Change (%) FY2011 FY2012 FY2013 FY2014 9M2015 Recu
Slide 28: Profit/Loss – Geographical Segment
Profit/Loss – Geographical Segment Profit/Loss After Tax (S$ Million) FY2011 FY2012 FY2013 FY2014 9M2015 Singapore 5.53 5.64 7.81¹ 8.99² 8.45 Hong Kong (1.97) (1.19) 0.40 2.10 1.31 Malaysia (1.44) (1.19) (0.59) (0.09) 0.13 China - - - (0.52) (0.65) Group 2.12 3.26 7.62 10.48 9.24 Notes: 1. Excluding
Slide 29: 3Q2015 and 9M2015 results summary
3Q2015 and 9M2015 results summary • Our Group’s AUA increased 5.5% YoY to S$5.42 billion as at 30 September 2015, but registered a decline from its 30 June 2015 level of S$5.71 billion, as volatility in global markets led to negative market sentiment and a sell-down in equity markets, negatively imp
Slide 30: 3Q2015 and 9M2015 results summary
3Q2015 and 9M2015 results summary • Hong Kong registered a profit after tax of S$0.31 million in 3Q2015 (down 58.8% YoY) and S$1.31 million in 9M2015 (down 17.5% YoY) respectively • Hong Kong’s profit was impacted by two negative factors, namely the sharp decline in equity markets, particularly Chin
Slide 31: Updates on FY2015 plans
Updates on FY2015 plans 1. Wholly-Owned China Subsidiary Awarded a Funds Distributor Qualification in China • On 19 October 2015, the Group, via its Qianhai-registered subsidiary, iFAST Platform Services (Shenzhen) Qianhai Limited (“iFAST China”), has been awarded a Funds Distributor Qualification (
Slide 32: Updates on FY2015 plans
Updates on FY2015 plans • We are targeting to officially launch our China business in late 1Q2016 • We intend to work with different industry players in China to build an investment products platform • We believe that the China market offers strong potential in the medium to long term, as we will be
Slide 33: Updates on FY2015 plans
Updates on FY2015 plans 2. Approval to launch Online Discretionary Portfolios Management Services in Hong Kong • On 3 August 2015, the Group’s wholly-owned subsidiary in Hong Kong, iFAST Financial (HK) Limited, received approval from the Securities and Futures Commission of Hong (SFC) to carry on Ty
Slide 34: Other Updates
Other Updates • In July 2015, iFAST Corp received the "Best Investor Relations - Merit Award" for First-Year Listed Companies at the Singapore Corporate Awards 2015 • In October 2015, iFAST Corp was named Winner of the SIAS Investors’ Choice Awards – Most Transparent Company Award (MTCA) 2015, New I
Slide 35: 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 35
Slide 36: Business Overview
Business Overview • We are an Internet-based investment products distribution platform with assets under administration (AUA) of S$5.42 billion as at 30 September 2015 (stock code: AIY) • Two main business divisions: – Business-to-Consumer (B2C) website, Fundsupermart.com, targeted at DIY investors
Slide 37: Business Model
Business Model PRIVATE & CONFIDENTIAL. NOT FOR EXTERNAL CIRCULATION. CO. REG. NO. R200007899C 37
Slide 38: Investment Case
Investment Case An Established and Leading Investment Products Distribution Platform Scalable Business Model Revenue Growth driven by Recurring Revenue which is based on Assets under Administration (“AUA”) Continued Growth of Investment Platforms in Asia ex-Japan PRIVATE & CONFIDENTIAL. NOT FOR EXTE
Slide 39: Our Milestones
Our Milestones 2002 2008 2014 Launch of Launch of Incorporation of iFAST iFAST Platform Services iFAST Platform Services Platform Services (Shenzhen) (B2B) in Singapore (B2B) in Hong Kong Qianhai in China 2007 2014 Launch of Listing on SGX-ST Fundsupermart.com Mainboard 2000 (B2C) in Hong Kong Launc
Slide 40: Our Value Proposition
Our Value Proposition B2B Financial Advisers • One platform, multiple investment products • Adoption of recurring revenue business model Suppliers based on Assets Under Administration (“AUA”) • Platform performs efficient collection of fees • One platform, multiple B2B and • Backroom functions manag
Slide 41: Fees Illustration
Fees Illustration B2B Financial Advisers • Upfront Adviser- Commissions assisted Suppliers • Wrap Fees Investors • Platform Fees • Trailer Fees • Upfront B2C Commissions Investors • Platform Fees PRIVATE & CONFIDENTIAL. NOT FOR EXTERNAL CIRCULATION. CO. REG. NO. R200007899C 41
Slide 42: AUA-driven Business Model
AUA-driven Business Model • When B2C customers and B2B adviser-assisted investors transact in investment products, the value of their investments is termed AUA Non-recurring Recurring revenue (based on AUA) revenue Platform Fees Wrap Fees Upfront Commissions Trailer Fees (from B2B and B2C (from B2B
Slide 43: Thank you.
Thank you. For more information, please visit www.ifastcorp.com PRIVATE & CONFIDENTIAL. NOT FOR EXTERNAL CIRCULATION. CO. REG. NO. R200007899C 43