Slide 1: 4Q2018 & FY2018 Results Presentation
4Q2018 & FY2018 Results Presentation 20 February 2019 Wealth Management Fintech Platform - Scaling Up iFAST Corporation Ltd. 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 Contents
Table of Contents SECTION TITLE PAGE Key Summary 4 I Financial Results 7 4Q2018 (Oct – Dec 2018) and FY2018 (Jan – Dec 2018) Results Financial Indicators Financial Position Final Dividend II Building A Leading Asian Wealth Management Fintech Platform 22 The iFAST Fintech Ecosystem The Re
Slide 4: Key Summary
Key Summary • The Group’s revenue and profitability grew healthily in 2018 as a result of the progress made in its overall business during the year. Net revenue increased 20.6% YoY to S$59.62 million while net profit rose 41.7% YoY to S$10.91 million. Excluding China, the Group’s net profit was S$15
Slide 5: Key Summary
Key Summary • iFAST Corp had previously announced that iFAST Hong Kong operation (“iFAST HK”) has put in an application to Hong Kong Monetary Authority (HKMA) for a Virtual Banking licence in Hong Kong. The Group has recently been notified by HKMA that iFAST HK is not among the first batch of shortl
Slide 6: Group AUA declined 5.3% QoQ to S$8.05 billion in 4Q2018
Group AUA declined 5.3% QoQ to S$8.05 billion¹ in 4Q2018, resulting in a slow growth of 6.2% YoY in AUA as at 31 Dec 2018 S$ million $9,000 $8,000 $7,000 $6,000 $5,000 $4,000 $3,000 $2,000 $1,000 $- Jun-01 Jun-02 Jun-03 Jun-04 Jun-05 Jun-06 Jun-07 Jun-08 Jun-09 Jun-10 Jun-11 Jun-12 Jun-13 Jun-14 Jun
Slide 7: Financial Results
SECTION I: Financial Results PRIVATE & CONFIDENTIAL. NOT FOR EXTERNAL CIRCULATION. CO. REG. NO. R200007899C iFAST Corporation Ltd. 7
Slide 8: Presentation of Group's Results
Presentation of Group’s Results Presentation of Group’s results (including and excluding China) • In view that our China operation is a relatively new market for the Group, we are presenting our presentation results based on the results of: (1) Group excluding China operation; and (2) Group includin
Slide 9: Financial Results for Group (excluding China operation) (4Q2018 vs 4Q2017)
Financial Results for Group (excluding China operation) (4Q2018 vs 4Q2017) YoY change S$ (Million) 4Q20171 4Q20172 4Q2018 (%) Revenue 28.04 28.04 27.83 -0.7 Net revenue 13.17 13.17 14.67 +11.4 Other income 0.98 0.21 0.26 +26.6 Expenses 10.60 10.51 11.68 +11.1 Net finance income 0.20 0.20 0.11 -42.1
Slide 10: Financial Results for Group (including China operation) (4Q2018 vs 4Q2017)
Financial Results for Group (including China operation) (4Q2018 vs 4Q2017) YoY change S$ (Million) 4Q20171 4Q20172 4Q2018 (%) Revenue 28.18 28.18 27.99 -0.7 Net revenue 13.30 13.30 14.82 +11.4 Other income 0.99 0.19 0.26 +38.9 Expenses 11.95 11.86 13.02 +9.8 Net finance income 0.20 0.20 0.12 -39.2 S
Slide 11: Financial Results for Group (excluding China operation) (FY2018 vs FY2017)
Financial Results for Group (excluding China operation) (FY2018 vs FY2017) YoY change S$ (Million) FY20171 FY20172 FY2018 (%) Revenue 100.65 100.65 120.50 +19.7 Net revenue 49.01 49.01 58.87 +20.1 Other income 2.50 1.10 1.16 +5.9 Expenses 37.40 37.31 44.12 +18.2 Net finance income 0.72 0.72 0.79 +9.
Slide 12: Financial Results for Group (including China operation) (FY2018 vs FY2017)
Financial Results for Group (including China operation) (FY2018 vs FY2017) YoY change S$ (Million) FY20171 FY20172 FY2018 (%) Revenue 101.17 101.17 121.24 +19.8 Net revenue 49.45 49.45 59.62 +20.6 Other income 2.50 1.08 1.16 +7.8 Expenses 42.28 42.19 49.78 +18.0 Net finance income 0.74 0.74 0.83 +12
Slide 13: Results Overview for Group (excluding China operation)
Results Overview for Group (excluding China operation) S$ (Million) FY20141 FY2015 FY2016 FY20172 FY2018 Revenue 78.35 85.34 79.89 100.65 120.50 Net revenue 36.68 41.53 40.46 49.01 58.87 Other income 0.24 1.53 1.88 1.10 1.16 Operating expenses 25.62 30.06 33.13 37.31 44.12 Net finance income 0.10 0.
Slide 14: Results Overview for Group (including China operation)
Results Overview for Group (including China operation) S$ (Million) FY20141 FY2015 FY2016 FY20172 FY2018 Revenue 78.35 85.34 80.60 101.17 121.24 Net revenue 36.68 41.53 40.69 49.45 59.62 Other income 0.24 1.53 1.88 1.08 1.16 Operating expenses 26.14 31.08 37.16 42.19 49.78 Net finance income 0.10 0.
Slide 15: PBT margin for Group (based on net revenue)
PBT margin for Group (based on net revenue) (excluding China operation) (including China operation) 35.0% 35.0% 33.1% 31.1% 30.7% 29.2% 29.6% 30.0% 30.0% 26.8% 25.0% 24.3% 25.0% 20.7% 20.0% 20.0% 17.7% 15.0% 15.0% 15.0% 10.0% 10.0% 5.0% 5.0% 0.0% 0.0% 2014 2015 2016 2017 2018 2014 2015 2016 2017 201
Slide 16: Financial Indicators
Financial Indicators S$ (Million) FY2014 FY2015 FY2016 FY2017 FY2018 Operating Cashflows 10.18 14.18 5.63 13.22 17.62 Operating Cashflows (excluding China 10.46 15.43 8.79 16.92 21.62 Operation) Capital Expenditure 2.34 5.45 6.61 7.47 10.73 31 Dec 31 Dec 31 Dec 31 Dec 31 Dec S$ (Million) 2014 2015 2
Slide 17: Cash position
Cash position As at 31 Dec 2017 As at 31 Dec 2018 (S$ million) (S$ million) Cash and cash equivalents 33.50 61.30 Other investments¹ 22.41 24.11 Total cash and other investments 55.91 85.41 Less: Bank loans2 - (37.35) Net Cash Position (total cash and other investments 55.91 48.06 net off bank loans
Slide 18: Number of issued shares
Number of issued shares As at 31 Dec 2017 As at 31 Dec 2018 Total number of issued shares 264,672,618 266,776,679 (excluding treasury shares) 18
Slide 19: Our Consolidated Financial Position as at 31 Dec 2018
Our Consolidated Financial Position as at 31 Dec 2018 S$’000 NON-CURRENT ASSETS Fixed Assets 3,254 Intangible Assets 17,860 Associates 2,951 Other Investments 5,062 Deferred Tax Assets 987 Prepayments & Others 218 TOTAL NON-CURRENT ASSETS 30,332 CURRENT ASSETS Current Tax Receivables 2 Uncompleted C
Slide 20: Our Consolidated Financial Position as at 31 Dec 2018 (cont'd)
Our Consolidated Financial Position as at 31 Dec 2018 (cont’d) S$’000 CURRENT LIABILITIES Uncompleted Contracts – Sellers 10,929 Trade & Other Payables 21,080 Bank Loans 37,354 Finance Lease Liabilities 5 Current Tax Payables 1,663 TOTAL CURRENT LIABILITIES 71,031 NON-CURRENT LIABILITIES Deferred Ta
Slide 21: Final Dividend for FY2018
Final Dividend for FY2018 Final Dividend for FY2018 - Schedule Dividend per share 0.90 cents per ordinary share Ex-dividend date 24 Apr 2019 Record date and time 25 Apr 2019 (5.00 pm) Payment date 9 May 2019 • For the final dividend for FY2018, the Directors proposed a dividend per share of 0.90 cen
Slide 22: Building A Leading Asian Wealth Management Fintech Platform
SECTION II: Building A Leading Asian Wealth Management Fintech Platform iFAST Corporation Ltd. 22
Slide 23: iFAST Fintech Ecosystem
iFAST Fintech Ecosystem Connecting All to Help Investors Invest Globally and Profitably Fund Houses Fundsupermart.com / FSMOne.com / Holds relevant B2C Bondsupermart licences in 5 markets Banks/ Over Bond Dealers 330,000 customer FA Companies accounts in 5 Markets Over 350 companies, and Stock Finan
Slide 24: The iFAST Fintech Ecosystem
The iFAST Fintech Ecosystem • Products and services: – Unit trusts (over 5,900 funds from over 240 fund houses) – Bonds (over 1,000 direct bonds) – Stocks & ETFs – in 3 markets (Singapore, Hong Kong and US) – Discretionary portfolio management services • Over 350 financial institutions and other cor
Slide 25: The Revenue Drivers
The Revenue Drivers • The iFAST business model predominantly involves growing the size of our assets under administration (AUA). Higher AUA will generally lead to higher revenues. • Recurring income accounts for over 80% of our net revenue • Sources of Non-Recurring Net Revenue – Transaction fees –
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 2014 to 2018 was 82.6% 70 60 11.3 50 8.5 40 6.9 6.0 7.2 30 6.0 4.0 48.3 4.8 20 18.1 4.6 40.9 12.3 34.6 34.7 4.0 29.5
Slide 27: Group AUA declined 5.3% QoQ to S$8.05 billion in 4Q2018
Group AUA declined 5.3% QoQ to S$8.05 billion¹ in 4Q2018, resulting in a slow growth of 6.2% YoY in AUA as at 31 Dec 2018 S$ million $9,000 $8,000 $7,000 $6,000 $5,000 $4,000 $3,000 $2,000 $1,000 $- Jun-01 Jun-02 Jun-03 Jun-04 Jun-05 Jun-06 Jun-07 Jun-08 Jun-09 Jun-10 Jun-11 Jun-12 Jun-13 Jun-14 Jun
Slide 28: Net revenue as a ratio of average AUA
Net revenue as a ratio of average AUA 0.800% 0.700% 0.122% 0.126% 0.139% 0.144% 0.105% 0.600% 0.500% 0.400% 0.300% 0.591% 0.615% 0.609% 0.606% 0.596% 0.200% 0.100% 0.000% 2014 2015 2016 2017 2018 Recurring net revenue / AUA Non-recurring net revenue / AUA 28
Slide 29: Updates on Virtual Banking Licence Application in Hong Kong
Updates on Virtual Banking Licence Application in Hong Kong • iFAST Corp had previously announced that iFAST Hong Kong operation (“iFAST HK”) has put in an application to Hong Kong Monetary Authority (HKMA) for a Virtual Banking licence in Hong Kong. • iFAST HK has recently been notified by HKMA tha
Slide 30: Continuing our Efforts to Empowering B2B Partners with Greater Fintech Capabilities
Continuing our Efforts to Empowering B2B Partners with Greater Fintech Capabilities • iFAST Corp’s in-house IT capabilities, and expertise in operating the B2B and B2C platforms put us in an unique position to help our B2B partners enhance their IT capabilities, including delivering customised solut
Slide 31: Our Performance Trends
SECTION III: Our Performance Trends iFAST Corporation Ltd. 31
Slide 32: AUA Breakdown: Markets & Products
AUA Breakdown: Markets & Products AUA Breakdown By Markets AUA Breakdown by Products 2.3% 3.5% 4.5% 7.8% 7.1% 22.9% 67.0% 84.9% Singapore Hong Kong Unit Trusts Bonds Malaysia Others (China & India) Stocks & ETFs Cash Account 32
Slide 33: Net sales & Subscription ex-switching
Net sales & Subscription ex-switching S$ million Net Sales S$ million Subscription ex-switching $1,000 $4,000 $942 $3,605 $3,500 $786 $800 $3,000 $2,570 $600 $2,500 $501 $2,000 $396 $1,670 $400 $1,547 $1,574 $1,500 $293 $235 $1,000 $200 $726 $710 $500 $(8) $- 2014 2015 2016 2017 2018 4Q174Q18 $- 201
Slide 34: Recurring and Non-Recurring Net Revenue
Recurring and Non-Recurring Net Revenue S$ (Million) FY2014 FY2015 FY2016 FY2017 FY2018 Recurring net revenue 29.48 34.64 34.71 40.95 48.32 Non-recurring net revenue 7.20 6.89 5.98 8.50 11.30 Total net revenue 36.68 41.53 40.69 49.45 59.62 YoY Change (%) FY2014 FY2015 FY2016 FY2017 FY2018 Recurring
Slide 35: Net Revenue – Geographical Segment
Net Revenue – Geographical Segment S$ (Million) FY2014 FY2015 FY2016 FY2017 FY2018 Singapore 25.72 30.04 29.54 34.77 39.30 Hong Kong 9.48 9.55 8.66 10.78 14.26 Malaysia 1.48 1.94 2.26 3.47 5.32 China - - 0.23 0.43 0.75 Group 36.68 41.53 40.69 49.45 59.62 YoY Change (%) FY2014 FY2015 FY2016 FY2017 FY
Slide 36: Net Revenue – B2B Business Segment
Net Revenue – B2B Business Segment B2B Net Revenue FY2014 FY2015 FY2016 FY2017 FY2018 (S$ Million) Recurring net revenue 21.09 24.50 24.49 28.85 33.88 Non-recurring net revenue 4.46 4.09 3.86 5.15 7.22 Total B2B net revenue 25.55 28.59 28.35 34.00 41.10 YoY Change (%) FY2014 FY2015 FY2016 FY2017 FY2
Slide 37: Net Revenue – B2C Business Segment
Net Revenue – B2C Business Segment B2C Net Revenue FY2014 FY2015 FY2016 FY2017 FY2018 (S$ Million) Recurring net revenue 8.39 10.15 10.22 12.10 14.44 Non-recurring net revenue 2.74 2.79 2.12 3.35 4.08 Total B2C net revenue 11.13 12.94 12.34 15.45 18.52 YoY Change (%) FY2014 FY2015 FY2016 FY2017 FY20
Slide 38: Profit/Loss – Geographical Segment
Profit/Loss – Geographical Segment YoY YoY Profit/Loss Change Change (S$ Million) 4Q20171 4Q2018 (%) FY20171 FY2018 (%) Singapore 2.18 2.19 +0.2 10.62 11.86 +11.7 Hong Kong 0.53 0.77 +45.3 1.77 3.42 +93.7 Malaysia 0.31 0.39 +26.1 1.07 1.37 +28.4 Other2 (0.02) 0.63 NM (0.33) 0.52 NM Profit before tax
Slide 39: Profit/Loss – Geographical Segment
Profit/Loss – Geographical Segment Profit/Loss (S$ Million) FY2014 FY2015 FY2016 FY20174 FY2018 Singapore 9.371 11.82 9.07 10.62 11.86 Hong Kong 2.10 1.65 0.53 1.77 3.42 Malaysia (0.04)3 0.28 0.38 1.07 1.37 Other2 (0.01) (0.02) (0.16) (0.33) 0.52 Profit before tax (excluding China operation) 11.42 1
Slide 40: 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% 0.736% 0.711% 0.700% 0.615% 0.607% 0.606% 0.591% 0.599% 0.600% 0.582% 0.556% 0.551% 0.534% 0.513% 0.500% 0.400% 0.300% 0.200% 0.100% 0.000% 2014 2015 2016 2017 2018 Net reve
Slide 41: 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% 0.735% 0.714% 0.700% 0.652% 0.615% 0.625% 0.614% 0.609% 0.606% 0.591% 0.596% 0.600% 0.552% 0.524% 0.500% 0.400% 0.300% 0.200% 0.100% 0.000% 2014 2015 2016 2017 2018 Net reve
Slide 42: Progress of Individual Markets: Singapore
Progress of Individual Markets Singapore • AUA of the Singapore operation grew 4.2% YoY, reaching S$5.40 billion as at 31 Dec 2018 • Net revenue grew 13.0% YoY to S$39.30 million in FY2018, while net profit before tax grew 11.7% YoY to S$11.86 million in FY2018 • Global markets continued to be turbu
Slide 43: Progress of Individual Markets: Singapore
Progress of Individual Markets Singapore • The ETF section on the FSMOne.com website was also revamped in January 2019, making it easier for investors to have access to information specific to ETFs from the SGX, HKEX and US exchanges. The commission fee of 0.08% on ETFs (subject to minimum of S$10,
Slide 44: Progress of Individual Markets: Hong Kong
Progress of Individual Markets Hong Kong • Hong Kong’s AUA grew 9.8% YoY to S$1.84 billion as at 31 Dec 2018 • Net revenue increased 32.2% YoY to S$14.26 million and net profit before tax improved 93.7% to S$3.42 million in FY2018 • With the broader market continued its weakness into 4Q2018, sales e
Slide 45: Progress of Individual Markets: Malaysia
Progress of Individual Markets Malaysia • Malaysia’s AUA grew 12.5% YoY to hit S$627.63 million as at 31 Dec 2018 • Net revenue grew 53.4% YoY to S$5.32 million and net profit before tax grew by 28.4% YoY to S$1.37 million in FY2018 • Investors sentiment took at hit in 4Q2018 due to market volatilit
Slide 46: Progress of Individual Markets: China
Progress of Individual Markets China • China’s AUA grew 6.7% YoY to RMB 441 million as at 31 Dec 2018, though uncertain market conditions in 4Q2018 continues to rattle investors’ confidence in the short term, and redemptions of institutional monies towards the end of year led to a drop in AUA on a q
Slide 47: Progress of Individual Markets: China
Progress of Individual Markets China • As the number of publicly offered mutual funds available on iFAST China platforms grows beyond 3,000, the China operations will focus on bringing on-board quality private funds onto the platform. Externally managed Private Funds will allow iFAST China to better
Slide 48: Progress of Individual Markets: India
Progress of Individual Markets India • As at 31 Dec 2018, iFAST Corp holds an effective 19.3% share of iFAST Financial India Pvt Ltd, the key business of the Group’s India business, which engages in the distribution of investment products including mutual funds in India, allowing the Group to tap on
Slide 49: Appendices
SECTION IV: Appendices iFAST Corporation Ltd. 49
Slide 50: Business Overview
Business Overview • iFAST Corporation Ltd. is a wealth management fintech platform with assets under administration (AUA) of S$8.05 billion as at 31 Dec 2018 (stock code: AIY) • Main business divisions: – Business-to-Consumer (B2C) platform, Fundsupermart (including its new FSMOne multi- products ac
Slide 51: 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 52: Milestones (cont'd)
Milestones (cont’d) 2016 2017 2018 • Acquisition of a stockbroking • Launch of Stocks & ETFs on FSM • Hong Kong: iFAST Platform Services (HK) Limited company and an insurance brokerage Hong Kong awarded Internet Finance Award 2017 Bronze prize firm in Hong Kong • Launch of Bonds on FSM Malaysia in t
Slide 53: 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 54: Licences Held and Products and Services Available
Licences Held and Products and Services Available (as at end Dec 2018) • Fund Distributor Qualification [CSRC] • Associate Member of AMAC • Member of SAMC Products available: UT • Registered Investment Adviser with the Securities and Exchange Board of India • Association of Mutual Funds in India (AM
Slide 55: Opportunities For A Leading Wealth Management Fintech Platform
Opportunities For A Leading Wealth Management Fintech Platform • Within the mutual funds markets in Asia, the assets under management (“AUM”) size of authorised and recognised collective investment schemes in Singapore is at S$101 billion in 2017 (Source: MAS, 2017 Singapore Asset Management Survey1
Slide 56: iFAST's Fintech Footprint: Past and Present
iFAST’s Fintech Footprint: Past and Present PAST: Building the Foundation (2000-2013) PRESENT: Stepping Up the Game (2014-2018) Focus on building Fintech capabilities in- Focus on broadening the range and depth of house to efficiently and effectively deliver investment products and asset classes ava
Slide 57: iFAST's Fintech Vision 2028
iFAST’s Fintech Vision 2028 • The Company sees the financial eco-system undergoing rapid and tremendous changes in the next 10 years because of factors including Financial Technology (Fintech) innovation and regulations, and shifts in consumer behavior • The Company believes it has the capabilities
Slide 58: iFAST's Fintech Vision 2028
iFAST’s Fintech Vision 2028 • iFAST had previously announced that iFAST Hong Kong operation (“iFAST HK”) has put in an application to Hong Kong Monetary Authority (HKMA) for a Virtual Banking licence in Hong Kong. We have recently been notified by HKMA that iFAST HK is not among the first batch of s
Slide 59: iFAST's Fintech Vision 2028
iFAST’s Fintech Vision 2028 • The Company has set an AUA target of $100 billion to be achieved by the year 2028*. This works out to a compound annual growth rate (CAGR) of 28% • For Singapore, our key market currently, we have set a 10-year target of AUA S$35 billion* – This works out to a CAGR of 2
Slide 60: iFAST Fintech Solutions
iFAST Fintech Solutions • The iFAST Fintech Solutions business division was set up in 2017, with the objectives to empower our business partners in advancing their wealth management business by delivering innovative fintech solutions that can better suit their clients’ needs, while combining busines
Slide 61: 4Q2018 Activities
4Q2018 Activities (L-R) FSM HK - How to Succeed in A Volatile Market Seminar (Hong Kong); FSM SG - Bond Clients Appreciation Dinner 2018 (Singapore) (L-R) iFAST China – New Housing Policies Seminar (China); iFAST India - Wrap Summit 2018 (India) iFAST Financial China Limited received the “Best Mutua
Slide 62: Fees Illustration
Fees Illustration FUND HOUSES TRAILER FEE PLATFORM FEE PLATFORM FEE B2B CUSTOMERS UPFRONT FEE B2C CUSTOMERS UPFRONT FEE WRAP FEE FX CONVERSION FEES B2B FINANCIAL ADVISORY COMPANIES FINTECH SOLUTIONS OTHER SERVICE FEES FACILITIES 62
Slide 63: Thank you.
Thank you. For more information, Please visit www.ifastcorp.com PRIVATE AND CONFIDENTIAL. NOT FOR EXTERNAL CIRCULATION. CO. REG. NO. R200007899C 63