Slide 1: 1Q2018 Results Presentation
1Q2018 Results Presentation 28 April 2018 SCALING UP TO BE A KEY FINTECH PLAYER iFAST Corporation Ltd.
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 Contents
Table of Contents SECTION TITLE I Financial Results 1Q2018 (Jan – Mar 2018) results Financial ratios Financial position Interim Dividends II Performance Trends Assets under Administration (AUA) Net sales and subscription excluding switching Recurring net revenue, non-recurring net reve
Slide 4: Key Summary
Key Summary • The Group’s Assets Under Administration (AUA) increased 24.8% YoY, reaching another record high of S$8.07 billion as at 31 March 2018, the seventh consecutive quarter of record AUA levels for the Group • The YoY increases in 1Q2018 were bolstered by growth in the Group’s business and A
Slide 5: Group AUA grew 24.8% YoY to record S$8.07 billion
Group AUA grew 24.8% YoY to record S$8.07 billion S$ million AUA (as at 31 Mar 2018): S$8.07 billion¹ $9,000 $8,000 $7,000 $6,000 $5,000 $4,000 $3,000 $2,000 $1,000 $- Mar-03 Mar-15 Mar-00 Mar-01 Mar-02 Mar-04 Mar-05 Mar-06 Mar-07 Mar-08 Mar-09 Mar-10 Mar-11 Mar-12 Mar-13 Mar-14 Mar-16 Mar-17 Mar-18
Slide 6: Key Summary
Key Summary • The Group believes that the efforts over the last few years to broaden the range of products and services available on its platforms are showing some initial results • The Group now runs a more comprehensive wealth management platform that will help bring the Group’s AUA and overall bu
Slide 7: Financial Results
SECTION I: Financial Results PRIVATE & CONFIDENTIAL. NOT FOR EXTERNAL CIRCULATION. CO. REG. NO. R200007899C iFAST Corporation Ltd.
Slide 8: Presentation of Group's Results
Presentation of Group’s Results Presentation of Group’s results (including and excluding China) • In view that our China operation is a relatively new market for the Group, we are presenting our presentation results based on the results of: (1) Group (Singapore, Hong Kong, Malaysia) excluding China
Slide 9: Financial Results for Group (excluding China operation) (1Q2018 vs 1Q2017)
Financial Results for Group (excluding China operation) (1Q2018 vs 1Q2017) YoY change S$ (Million) 1Q20171 1Q20172 1Q2018 (%) Revenue 21.96 21.96 30.79 +40.2 Net revenue 11.12 11.12 14.20 +27.8 Other income 0.44 0.23 0.28 +22.4 Expenses 8.38 8.38 10.48 +25.0 Net finance income 0.20 0.20 0.22 +13.1 S
Slide 10: Financial Results for Group (including China operation) (1Q2018 vs 1Q2017)
Financial Results for Group (including China operation) (1Q2018 vs 1Q2017) YoY change S$ (Million) 1Q20171 1Q20172 1Q2018 (%) Revenue 22.10 22.10 30.96 +40.1 Net revenue 11.17 11.17 14.38 +28.7 Other income 0.44 0.23 0.28 +22.4 Expenses 9.44 9.44 11.88 +25.9 Net finance income 0.20 0.20 0.23 +12.8 S
Slide 11: Results Overview for Group (excluding China operation)
Results Overview for Group (excluding China operation) S$ (Million) FY20141 FY2015 FY2016 FY2017 1Q2018 Revenue 78.35 85.34 79.89 100.65 30.79 Net revenue 36.68 41.53 40.46 49.01 14.20 Other income 0.24 1.53 1.88 2.50 0.28 Operating expenses 25.62 30.06 33.13 37.40 10.48 Net finance income 0.10 0.75
Slide 12: Results Overview for Group (including China operation)
Results Overview for Group (including China operation) S$ (Million) FY20141 FY2015 FY2016 FY2017 1Q2018 Revenue 78.35 85.34 80.60 101.17 30.96 Net revenue 36.68 41.53 40.69 49.45 14.38 Other income 0.24 1.53 1.88 2.50 0.28 Operating expenses 26.14 31.08 37.16 42.28 11.88 Net finance income 0.10 0.80
Slide 13: 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% 29.5% 29.5% 29.6% 30% 30% 25% 24.3% 25% 20.4% 20.8% 20% 20% 15.0% 15% 15% 10% 10% 5% 5% 0% 0% 2014 2015 2016 2017 1Q2018 2014 2015 2016 2017 1Q2018 Notes: 1. PBT margins (201
Slide 14: Financial Ratios
Financial Ratios S$ (Million) FY2014 FY2015 FY2016 FY2017 1Q2018 Operating 10.18 14.18 5.63 13.22 1.01 Cashflows Capital 2.34 5.45 6.61 7.47 2.20 Expenditure 31 Dec 31 Dec 31 Dec 31 Dec 31 Mar S$ (Million) 2014 2015 2016 2017 2018 Net Current 63.16 68.32 64.39 60.18 60.94 Assets 31 Dec 31 Dec 31 Dec
Slide 15: Cash position
Cash position As at 31 Dec 2017 As at 31 Mar 2018 (S$ million) (S$ million) Cash and cash equivalents 33.50 20.64 Other investments¹ 22.41 24.71 Total cash and other investments 55.91 45.35 Note: 1. Other investments comprise investments in financial assets under current assets 15
Slide 16: Number of issued shares
Number of issued shares As at 31 Dec 2017 As at 31 Mar 2018 Total number of issued shares 264,672,618 265,871,518 (excluding treasury shares) 16
Slide 17: Our Consolidated Financial Position as at 31 Mar 2018
Our Consolidated Financial Position as at 31 Mar 2018 S$’000 NON-CURRENT ASSETS Fixed Assets 3,175 Intangible Assets 13,596 Associates 2,424 Other Investments 3,952 Deferred Tax Assets 694 Prepayments & Others 310 24,151 CURRENT ASSETS Trade & Other Receivables 32,688 Uncompleted contracts - buyers
Slide 18: Our Consolidated Financial Position as at 31 Mar 2018 (cont'd)
Our Consolidated Financial Position as at 31 Mar 2018 (cont’d) S$’000 CURRENT LIABILITIES Uncompleted contracts - sellers 12,160 Trade & Other Payables 17,074 Finance Lease 5 Current Tax Payable 1,464 30,703 NON-CURRENT LIABILITIES Deferred Tax 1,250 Finance Lease 12 1,262 EQUITY Share Capital 65,55
Slide 19: First Interim Dividend for FY2018
First Interim Dividend for FY2018 First Interim Dividend for FY2018 - Schedule Dividend per share 0.75 cents per ordinary share Ex-dividend date 4 May 2018 Record date and time 8 May 2018 (5.00 pm) Payment date 18 May 2018 • For the first interim dividend for 1Q2018, the Directors proposed a dividen
Slide 20: Performance Trends
SECTION II: Performance Trends iFAST Corporation Ltd.
Slide 21: Group AUA Trends
Group AUA Trends Singapore Hong Kong Malaysia Others 66.5% 23.1% 7.4% 3.0% • The AUA contribution from the China Business and India Business (based on the Group’s effective 19.2% share of the India Business) is included in the ‘Others’ category • The Group’s AUA rose 24.8% YoY and 6.3% QoQ to a reco
Slide 22: Net sales & Subscription ex-switching
Net sales & Subscription ex-switching S$ million Net Sales S$ million Subscription ex-switching $1,000 $3,000 $942 $900 $2,570 $2,500 $800 $700 $2,000 $600 $1,670 $501 $1,547 $1,574 $500 $1,500 $396 $400 $373 $1,058 $1,000 $300 $235 $200 $173 $547 $500 $100 $- $- 2014 2015 2016 2017 1Q17 1Q18 2014 2
Slide 23: Net revenue breakdown between recurring and non-recurring sources
Net revenue breakdown between recurring and non-recurring sources Average contribution from recurring net revenue as opposed to non-recurring net revenue in the S$ million period from 2013 to 1Q2018 was 82.2% 60 50 8.5 40 6.9 6.0 7.2 30 6.0 4.0 4.8 20 18.1 4.6 40.9 12.3 34.6 34.7 4.0 29.5 25.6 2.8 1
Slide 24: Net revenue as a ratio of average AUA
Net revenue as a ratio of average AUA 0.800% 0.700% 0.144% 0.122% 0.126% 0.105% 0.144% 0.600% 0.500% 0.400% 0.300% 0.591% 0.615% 0.609% 0.606% 0.586% 0.200% 0.100% 0.000% 2014 2015 2016 2017 1Q2018 Recurring net revenue / AUA Non-recurring net revenue / AUA 24
Slide 25: 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% 0.729% 0.711% 0.721% 0.700% 0.615% 0.607% 0.606% 0.591% 0.582% 0.581% 0.600% 0.556% 0.534% 0.532% 0.513% 0.500% 0.400% 0.300% 0.200% 0.100% 0.000% 2014 2015 2016 2017 1Q2018 Net re
Slide 26: 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% 0.732% 0.730% 0.714% 0.700% 0.652% 0.615% 0.609% 0.625% 0.606% 0.603% 0.591% 0.586% 0.600% 0.552% 0.524% 0.500% 0.400% 0.300% 0.200% 0.100% 0.000% 2014 2015 2016 2017 1Q2018 Net re
Slide 27: Recurring and Non-Recurring Net Revenue
Recurring and Non-Recurring Net Revenue S$ (Million) FY2014 FY2015 FY2016 FY2017 1Q2018 Recurring net revenue 29.48 34.64 34.71 40.95 11.54 Non-recurring net revenue 7.20 6.89 5.98 8.50 2.84 Total net revenue 36.68 41.53 40.69 49.45 14.38 YoY Change (%) FY2014 FY2015 FY2016 FY2017 1Q2018 Recurring n
Slide 28: Net Revenue – Geographical Segment
Net Revenue – Geographical Segment S$ (Million) FY2014 FY2015 FY2016 FY2017 1Q2018 Singapore 25.72 30.04 29.54 34.77 9.76 Hong Kong 9.48 9.55 8.66 10.78 3.39 Malaysia 1.48 1.94 2.26 3.47 1.06 China - - 0.23 0.43 0.17 Group 36.68 41.53 40.69 49.45 14.38 YoY Change (%) FY2014 FY2015 FY2016 FY2017 1Q20
Slide 29: Net Revenue – B2B Business Segment
Net Revenue – B2B Business Segment B2B Net Revenue FY2014 FY2015 FY2016 FY2017 1Q2018 (S$ Million) Recurring net revenue 21.09 24.50 24.49 28.85 7.94 Non-recurring net revenue 4.46 4.09 3.86 5.15 1.67 Total B2B net revenue 25.55 28.59 28.35 34.00 9.61 YoY Change (%) FY2014 FY2015 FY2016 FY2017 1Q201
Slide 30: Net Revenue – B2C Business Segment
Net Revenue – B2C Business Segment B2C Net Revenue FY2014 FY2015 FY2016 FY2017 1Q2018 (S$ Million) Recurring net revenue 8.39 10.15 10.22 12.10 3.60 Non-recurring net revenue 2.74 2.79 2.12 3.35 1.17 Total B2C net revenue 11.13 12.94 12.34 15.45 4.77 YoY Change (%) FY2014 FY2015 FY2016 FY2017 1Q2018
Slide 31: Profit/Loss – Geographical Segment
Profit/Loss – Geographical Segment Profit/Loss YoY Change (S$ Million) 1Q20171 1Q20172 1Q2018 (%) Singapore 2.98 2.77 3.00 +8.3 Hong Kong 0.12 0.12 0.81 +570.2 Malaysia 0.26 0.26 0.41 +55.2 Others3 (0.13) (0.13) (0.03) -78.6 Profit before tax (excluding China operation) 3.23 3.02 4.19 +38.6 Tax expe
Slide 32: Profit/Loss – Geographical Segment
Profit/Loss – Geographical Segment Profit/Loss (S$ Million) FY2014 FY2015 FY2016 FY2017 1Q2018 Singapore 9.371 11.82 9.07 11.91 3.00 Hong Kong 2.10 1.65 0.53 1.82 0.81 Malaysia (0.04)3 0.28 0.38 1.07 0.41 Others2 (0.01) (0.02) (0.16) (0.33) (0.03) Profit before tax (excluding China operation) 11.42
Slide 33: 1Q2018 Results & Outlook – Singapore
1Q2018 Results & Outlook Singapore • AUA of the Singapore operation grew 17.6% YoY, reaching S$5.36 billion as at 31 March 2018 • Net revenue grew 21.5% YoY to S$9.75 million in 1Q2018, while net profit before tax grew 8.3% YoY to S$3.00 million in 1Q2018 • AUA and sales growth were strong in 1Q2018
Slide 34: 1Q2018 Results & Outlook – Singapore
1Q2018 Results & Outlook Singapore • The activities carried out in 1Q2018 included seminars touching on a wide range of topics across all product categories to give clients a better understanding of the opportunities and risks in the global markets • The B2B division also continued its efforts to br
Slide 35: 1Q2018 Results & Outlook – Hong Kong
1Q2018 Results & Outlook Hong Kong • Hong Kong’s AUA grew 32.6% YoY to S$1.86 billion as at 31 March 2018 • Net revenue increased 41.9% YoY to S$3.39 million and net profit before tax improved 570.2% to S$0.81 million in 1Q2018 • Positive investors’ sentiment since the beginning of the year contribu
Slide 36: 1Q2018 Results & Outlook – Malaysia
1Q2018 Results & Outlook Malaysia • Malaysia’s AUA grew 44.3% YoY to hit S$597 million as at 31 March 2018 • Net revenue grew 51.1% YoY to S$1.06 million and net profit before tax grew by 55.2% YoY to S$0.41 million in 1Q2018 • Despite the market volatility in 1Q2018, the significant increases in re
Slide 37: 1Q2018 Results & Outlook – China
1Q2018 Results & Outlook China • China’s AUA grew 561.2% YoY to RMB 715 million as at 31 March 2018 • Benefitting from increasing growth in both the onshore and offshore Chinese segments over the period, gross revenue and net revenue in China operation increased by 25.2% YoY and 216.4% YoY respectiv
Slide 38: 1Q2018 Results & Outlook – China
1Q2018 Results & Outlook China • The Group also sees opportunities in the offshore segment with more Chinese companies looking at helping their clients invest internationally, and with the Group’s presence in Hong Kong and Singapore, increased contributions can be expected in the future for the B2B
Slide 39: 1Q2018 Results & Outlook – India
1Q2018 Results & Outlook India • As at 31 March 2018, iFAST Corp holds an effective 19.2% share of iFAST Financial India Pvt Ltd, the key business of the India business. The Group has previously announced in January 2018 that it had increased its equity interest from 21.42% to 24.98% in the associat
Slide 40: Appendices
SECTION III: Appendices iFAST Corporation Ltd.
Slide 41: Business Overview
Business Overview • We are an Internet-based investment products distribution platform with assets under administration (AUA) of S$8.07 billion as at 31 March 2018 (stock code: AIY) • Two main business divisions: – Business-to-Consumer (B2C) platform, Fundsupermart (including its new FSMOne multi- p
Slide 42: Milestones
Milestones 2000 2008 2014 Launch of Fundsupermart.com (B2C) • Launch of iFAST Platform Services • Incorporation of iFAST Platform in Singapore (B2B) in Hong Kong Services (Shenzhen) Qianhai in China • Launch of Fundsupermart.com • Listing on SGX-ST 2002 (B2C) and iFAST Platform Services Launch of iF
Slide 43: Milestones (cont'd)
Milestones (cont’d) 2016 2017 2018 • Acquisition of a stockbroking • Launch of Stocks & ETFs on FSM • Hong Kong: iFAST Platform company and an insurance Hong Kong Services (HK) Limited awarded brokerage firm in Hong Kong • Launch of Bonds on FSM Malaysia Internet Finance Award 2017 • Acquisition of
Slide 44: iFAST Ecosystem
iFAST Ecosystem Fund Financial Financial Advisory Banks Houses Institutions (FA) Companies Adviser-Assisted Investors Banks (Bond Dealers) Companies Pensions for Employees Stock iFAST Global Markets Exchanges Adviser-Assisted Investors Insurance Companies FUNDSUPERMART.COM / FSMONE.COM & Other Produ
Slide 45: Our Value Proposition
Our Value Proposition PRODUCT B2B B2C PROVIDERS CUSTOMERS DIY INVESTORS • One platform, multiple • One platform, multiple investment • One platform, multiple B2C and B2B customers products investment products • No need to enter into • Adoption of recurring revenue business • Competitive and transpar
Slide 46: Fees Illustration
Fees Illustration FUND HOUSES TRAILER FEE PLATFORM FEE PLATFORM FEE B2B CUSTOMERS UPFRONT FEE B2C CUSTOMERS UPFRONT FEE WRAP FEE B2B FINANCIAL ADVISORY COMPANIES 46
Slide 47: Thank you.
Thank you. For more information, Please visit www.ifastcorp.com PRIVATE AND CONFIDENTIAL. NOT FOR EXTERNAL CIRCULATION. CO. REG. NO. R200007899C