Slide 1: 2Q2015 and 1H2015 Results Presentation
2Q2015 and 1H2015 Results Presentation 29 July 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 2Q2015 and 1H2015 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 net revenue and operating expe
Slide 4: Key summary
Key summary • Net profit increased 24.6% YoY to S$3.28 million in 2Q2015 and 35.2% YoY to S$6.29 million in 1H2015 respectively Net profit, • Net revenue was up 26.0% YoY to S$11.38 million in 2Q2015 and 22.2% YoY to S$21.24 million in 1H2015 respectively revenue & EPS • EPS was down 3.1% YoY to 1.2
Slide 5: Section I: Financial Results
PRIVATE & CONFIDENTIAL. NOT FOR EXTERNAL CIRCULATION. CO. REG. NO. R200007899C Section I: Financial Results PRIVATE & CONFIDENTIAL. NOT FOR EXTERNAL CIRCULATION. CO. REG. NO. R200007899C 5
Slide 6: Financial Results (2Q2015 vs 2Q2014)
Financial Results (2Q2015 vs 2Q2014) S$ (Million) 2Q2014 2Q2015 YoY change (%) Revenue 19.02 23.18 +21.9 Net revenue 9.03 11.38 +26.0 Other income 0.10 0.34 +250.0 Expenses 6.33 8.31 +31.2 Net finance income 0.03 0.21 +627.6 Share of result of associate, net of tax - -0.01 N.M. Profit before tax 2.8
Slide 7: Financial Results (1H2015 vs 1H2014)
Financial Results (1H2015 vs 1H2014) S$ (Million) 1H2014 1H2015 YoY change (%) Revenue 36.53 44.07 +20.6 Net revenue 17.38 21.24 +22.2 Other income 0.18 0.82 +364.2 Expenses 12.57 15.49 +23.3 Net finance income 0.05 0.29 +510.4 Share of result of associate, net of tax - (0.03) N.M. Profit before tax
Slide 8: Key financial highlights (FY2011-1H2015)
Key financial highlights (FY2011-1H2015) FY2011 FY2012 FY2013¹ FY2014² 1H2015 Net revenue (S$ million) 25.20 26.29 31.58 36.68 21.24 Net revenue (YoY change) +15.7% +4.4% +20.1% +16.1% +22.2% Ased Net profit (S$ million) 2.77 3.74 7.86 10.51 6.29 Net profit (YoY change) N.M. +35.0% +110.2% +33.7% +3
Slide 9: Results Overview (FY2011-1H2015)
Results Overview (FY2011-1H2015) S$ (Million) FY2011 FY2012 FY2013¹ FY2014² 1H2015 Revenue 61.12 56.41 69.47 78.35 44.07 Net revenue 25.20 26.29 31.58 36.68 21.24 Other income 0.06 0.08 0.16 0.24 0.82 Expenses 22.81 22.40 23.58 26.14 15.49 Net finance income -0.08 -0.03 0.03 0.10 0.29 Share of resul
Slide 10: PBT margin (based on net revenue)
PBT margin (based on net revenue) 35% 32.2% 29.6%² 30% 25.9%¹ 25% 20% 15.0% 15% 9.4% 10% 5% 0% FY2011 FY2012 FY2013 FY2014 1H2015 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 1H2015 Operating 1.40 2.33 7.13 10.18 6.17 Cashflows Capital 1.71 0.21 1.57 2.34 1.84 Expenditure 31 Dec 31 Dec 31 Dec 31 Dec 30 Jun S$ (Million) 2011 2012 2013 2014 2015 Net Current 21.92 20.95 20.70 63.16 68.21 Assets 31 Dec 31 Dec 31 Dec 3
Slide 12: Cash position
Cash position As at 31 Dec 2014 As at 30 Jun 2015 (S$ million) (S$ million) Cash and cash equivalents 35.39 24.57 Other investments¹ 22.02 37.05 Total cash and other investments 57.41² 61.62 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 Jun 2015 Total number of issued shares 256,225,334¹ 260,164,801 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 Jun 2015
Our Consolidated Financial Position as at 30 Jun 2015 S$’000 NON-CURRENT ASSETS Fixed Assets 1,787 Intangible Assets 3,108 Associate 360 Others 27 5,282 CURRENT ASSETS Trade & other receivables 19,685 Prepayments & others 885 Other Investments 37,053 Cash & cash equivalents 24,572 82,195 TOTAL ASSET
Slide 15: Our Consolidated Financial Position as at Jun 2015 – cont’d
Our Consolidated Financial Position as at 30 Jun 2015 – cont’d S$’000 CURRENT LIABILITIES Trade & other payables 13,217 Current tax payable 773 13,990 NON-CURRENT LIABILITIES Deferred Tax 182 Other Payables - 182 EQUITY Share Capital 61,546 Accumulated profits 15,221 Other reserves (3,462) EQUITY AT
Slide 16: Interim dividend
Interim dividend Second interim dividend for 2015 - Schedule Dividend per share 0.68 cents per ordinary share 4 August 2015 Ex-dividend date 20 August 2015 Payment date • Our Directors proposed a second interim dividend for 2015 based on approximately 53.9% of our net profit (excluding exceptional i
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 Jun 2015): S$5.71 billion $7,000 $6,000 $5,000 $4,000 $3,000 $2,000 $1,000 B2B: 74.7% and B2C: 25.3% $- Dec-00 Jun-01 Dec-01 Jun-02 Dec-02 Jun-03 Dec-03 Jun-04 Dec-04 Jun-05 Dec-05 Jun-06 Dec-06 Jun-07 Dec-07 Jun-08 Dec-08 Jun-09 Dec-09 Jun-10 Dec-10 Jun-11 Dec-11
Slide 19: Group AUA Trends
Group AUA Trends Singapore: 73.2% Hong Kong: 22.6% Malaysia: 4.2% • AUA grew 14.7% YoY to S$5.71 billion (as at 30 June 2015) • AUA grew at a 10-year CAGR of 22.3% (as at 30 June 2015) • AUA from the B2B and B2C segments grew 15.7% and 12.2% YoY respectively (as at 30 June 2015) PRIVATE & CONFIDENTI
Slide 20: Net sales & subscription ex-switching
Net sales & subscription ex-switching S$ million S$ million Net sales Subscription ex-switching $600 $2,000 $501 $500 $458 $1,547 $1,600 $1,365 $400 $1,200 $300 $947 $940 $947 $239 $800 $193 $200 $400 $100 $55 $- $- 2011 2012 2013 2014 1H2015 2011 2012 2013 2014 1H2015 PRIVATE & CONFIDENTIAL. NOT FO
Slide 21: Net revenue breakdown between recurring and non-recurring sources
Net revenue breakdown between recurring and non-recurring sources Average contribution from recurring net revenue as opposed to non-recurring net revenue in the S$ million period from FY2011 to 1H2015 was 82.0% 40 35 30 25 21.2 20 15 10 6.9 5 4.3 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% 0.131% 0.144% 0.101% 0.134% 0.600% 0.125% 0.500% 0.400% 0.300% 0.591% 0.618% 0.571% 0.574% 0.526% 0.200% 0.100% 0.000% FY2011 FY2012 FY2013 FY2014 1H2015 Recurring net revenue / AUA Non-recurring net revenue / AUA Note: 1. The ratio for 1H2015 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% 0.749% 0.735% 0.707% 0.700% 0.672% 0.650% 0.618% 0.589% 0.572% 0.591% 0.600% 0.571% 0.574% 0.547% 0.526% 0.528% 0.524% 0.500% 0.400% 0.300% 0.200% 0.100% 0.000% FY2011 FY2012 FY2013 FY2014 1H2015 Net revenue / AUA Recurring net reve
Slide 24: Recurring and Non-Recurring Net Revenue
Recurring and Non-Recurring Net Revenue S$ (Million) FY2011 FY2012 FY2013 FY2014 1H2015 Recurring net revenue 20.38 22.34 25.62 29.48 17.52 Non-recurring net revenue 4.82 3.95 5.96 7.20 3.72 Total net revenue 25.20 26.29 31.58 36.68 21.24 YoY Change (%) FY2011 FY2012 FY2013 FY2014 1H2015 Recurring n
Slide 25: Net Revenue – Geographical Segment
Net Revenue – Geographical Segment S$ (Million) FY2011 FY2012 FY2013 FY2014 1H2015 Singapore 21.15 21.33 24.10 25.72 15.28 Hong Kong 3.65 4.39 6.50 9.48 5.07 Malaysia 0.40 0.57 0.98 1.48 0.89 Group 25.20 26.29 31.58 36.68 21.24 YoY Change (%) FY2011 FY2012 FY2013 FY2014 1H2015 Singapore +13.0 +0.9 +
Slide 26: Net Revenue – B2B Business Segment
Net Revenue – B2B Business Segment B2B Net Revenue FY2011 FY2012 FY2013 FY2014 1H2015 (S$ Million) Recurring net revenue 14.10 16.03 18.16 21.09 12.44 Non-recurring net revenue 2.68 2.11 3.06 4.46 2.18 Total B2B net revenue 16.78 18.14 21.22 25.55 14.62 YoY Change (%) FY2011 FY2012 FY2013 FY2014 1H2
Slide 27: Net Revenue – B2C Business Segment
Net Revenue – B2C Business Segment B2C Net Revenue FY2011 FY2012 FY2013 FY2014 1H2015 (S$ Million) Recurring net revenue 6.28 6.31 7.46 8.39 5.08 Non-recurring net revenue 2.14 1.84 2.90 2.74 1.54 Total B2C net revenue 8.42 8.15 10.36 11.13 6.62 YoY Change (%) FY2011 FY2012 FY2013 FY2014 1H2015 Recu
Slide 28: Profit/Loss – Geographical Segment
Profit/Loss – Geographical Segment Profit/Loss After Tax (S$ Million) FY2011 FY2012 FY2013 FY2014 1H2015 Singapore 5.53 5.64 7.81¹ 8.99² 5.63 Hong Kong (1.97) (1.19) 0.40 2.10 1.00 Malaysia (1.44) (1.19) (0.59) (0.09) 0.01 China - - - (0.52) (0.35) Group 2.12 3.26 7.62 10.48 6.29 Notes: 1. Excluding
Slide 29: 2Q2015 and 1H2015 results summary
2Q2015 and 1H2015 results summary • Our Group’s AUA increased 14.7% YoY to S$5.71 billion as at 30 June 2015, but registered a decline from its 31 March 2015 level of S$5.75 billion, as market sentiment turned volatile on news over China and Greece and negatively affected the valuation of our invest
Slide 30: Our mission
Our mission 1. Grow our capabilities as an investment platform • Our key focus continues to be on improving the range of products and services that we provide as an investment platform to ensure we can remain a leader in our industry • As we upgrade the range of products and services, we will be abl
Slide 31: Updates on FY2015 plans
Updates on FY2015 plans 1. Launch of Bonds and ETFs in Singapore • Our Singapore subsidiary received regulatory approval for the distribution of bonds and ETFs in Singapore in 2Q2015 • In Singapore, ETFs are distributed on our B2B platform, while bonds are distributed on both our B2B and B2C platfor
Slide 32: Updates on FY2015 plans (continued)
Updates on FY2015 plans (continued) 2. Proposed acquisition of a stockbroking firm in Hong Kong • We have entered into an agreement for the acquisition of a stockbroking firm, Winfield Securities Limited, in June 2015, which is pending regulatory approval in Hong Kong • The purchase consideration is
Slide 33: Updates on FY2015 plans (continued)
Updates on FY2015 plans (continued) 3. Updates on China • We have applied for the Third Party Funds Distribution licence in China in preparation for the launch of an investment platform • While we do not have a concrete timeline on when we can receive the requisite approval, we continue to work on e
Slide 34: 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 34
Slide 35: Business Overview
Business Overview • We are an Internet-based investment products distribution platform with assets under administration (AUA) of S$5.71 billion as at 30 June 2015 (stock code: AIY) • Two main business divisions: – Business-to-Consumer (B2C) website, Fundsupermart.com, targeted at DIY investors (AUA
Slide 36: Business Model
Business Model PRIVATE & CONFIDENTIAL. NOT FOR EXTERNAL CIRCULATION. CO. REG. NO. R200007899C 36
Slide 37: 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 38: 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 39: 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 40: 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 40
Slide 41: 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 42: Thank you.
Thank you. For more information, please visit www.ifastcorp.com PRIVATE & CONFIDENTIAL. NOT FOR EXTERNAL CIRCULATION. CO. REG. NO. R200007899C 42