Slide 1: 1Q2019 Results Presentation
27 April 2019 1Q2019 Results Presentation iFAST Corporation Ltd.
Slide 2: Disclaimer
Disclaimer This presentation should be read as an overview of iFAST Corporation Ltd.’s ("iFAST Corp“ or the “Company”, and together with its subsidiaries, the “Group”) current business activities and operating environment. This presentation should not be solely relied upon by current and potential i
Slide 3: Table of Contents
Table of Contents Key Summary Pg. 4 1Q2019 (Jan – Mar 2019) Results Pg. 7 Section I Financial Indicators Financial Results Financial Position First Interim Dividend Section II The iFAST Fintech Ecosystem Pg. 22 Strengthening Our The Revenue Drivers Fintech Ecosystem An Evolving Wealth
Slide 4: Key Summary
Key Summary • Following an extended period of poor financial market conditions between 2Q2018 to end 2018, the Group started the year with a weak January and February in terms of revenue and profitability, resulting in total net revenue growing by only 4.4% YoY in 1Q2019. Whilst recurring net revenu
Slide 5: Key Summary
Key Summary • The Group continues to position itself to benefit from the huge long-term potential of Asia’s wealth management industry, by constantly striving to improve its services as a wealth management Fintech platform. • As the Group is executing its overall strategy, adverse financial market c
Slide 6: Group AUA grew 8.7% QoQ to a record high of S$8.75 billion
Group AUA grew 8.7% QoQ to a record high of S$8.75 billion AUA (as at 31 Mar 2019): S$8.75 billion1 S$ million $10,000 $9,000 $8,000 $7,000 $6,000 $5,000 $4,000 $3,000 $2,000 $1,000 $0 Sep-00 Sep-01 Sep-02 Sep-03 Sep-04 Sep-05 Sep-06 Sep-07 Sep-08 Sep-09 Sep-10 Sep-11 Sep-12 Sep-13 Sep-14 Sep-15 Sep
Slide 7: Financial Results
SECTION I Financial Results iFAST Corporation Ltd. 7
Slide 8: Presentation of Group's Results
Presentation of Group’s Results Presentation of Group’s results (including and excluding China) • In view that our China operation is a relatively new market for the Group, we are presenting our presentation results based on the results of: 1) Group excluding China operation; and 2) Group including
Slide 9: Financial Results for Group (excluding China operation) (1Q2019 vs 1Q2018)
Financial Results for Group (excluding China operation) (1Q2019 vs 1Q2018) S$ (Million) 1Q2018 1Q2019 YoY change (%) Revenue 30.79 27.01 -12.3 Net revenue 14.20 14.84 +4.4 Other income 0.28 0.61 +115.5 Expenses 10.48 12.06 +15.2 Net finance income/(cost) 0.22 -0.17 NM Share of results of associates,
Slide 10: Financial Results for Group (including China operation) (1Q2019 vs 1Q2018)
Financial Results for Group (including China operation) (1Q2019 vs 1Q2018) S$ (Million) 1Q2018 1Q2019 YoY change (%) Revenue 30.96 27.19 -12.2 Net revenue 14.38 15.02 +4.4 Other income 0.28 0.61 +115.5 Expenses 11.88 13.47 +13.4 Net finance income/(cost) 0.23 -0.16 NM Share of results of associates,
Slide 11: Results Overview for Group (excluding China operation)
Results Overview for Group (excluding China operation) S$ (Million) FY2015 FY2016 FY20171 FY2018 1Q2019 Revenue 85.34 79.89 100.65 120.50 27.01 Net revenue 41.53 40.46 49.01 58.87 14.84 Other income 1.53 1.88 1.10 1.16 0.61 Operating expenses 30.06 33.13 37.31 44.12 12.06 Net finance income/(cost) 0
Slide 12: Results Overview for Group (including China operation)
Results Overview for Group (including China operation) S$ (Million) FY2015 FY2016 FY20171 FY2018 1Q2019 Revenue 85.34 80.60 101.17 121.24 27.19 Net revenue 41.53 40.69 49.45 59.62 15.02 Other income 1.53 1.88 1.08 1.16 0.61 Operating expenses 31.08 37.16 42.19 49.78 13.47 Net finance income/(cost) 0
Slide 13: PBT margin for Group (based on net revenue)
PBT margin for Group (based on net revenue) (excluding China operation) (including China operation) 35.0% 35.0% 33.1% 30.7% 30.0% 29.2% 30.0% 26.8% 25.0% 24.3% 25.0% 20.6% 20.7% 20.0% 20.0% 17.7% 15.0% 15.0% 15.0% 12.4% 10.0% 10.0% 5.0% 5.0% 0.0% 0.0% 2015 2016 2017 2018 1Q2019 2015 2016 2017 2018 1
Slide 14: Financial Indicators
Financial Indicators S$ (Million) FY2015 FY2016 FY2017 FY2018 1Q2019 Net Cash Position1 61.48 54.59 55.91 48.06 47.87 Operating Cash Flows 14.18 5.63 13.22 17.62 2.92 Operating Cash Flows (excluding China 15.43 8.79 16.92 21.62 4.26 Operation) Capital Expenditure2 5.45 6.61 7.47 10.73 2.80 Net Curre
Slide 15: Net Cash Position
Net Cash Position As at 31 Dec 2018 As at 31 Mar 2019 (S$ million) (S$ million) Cash and cash equivalents 61.30 33.15 Other investments¹ 24.11 28.33 Total cash and other investments 85.41 61.48 Less: Bank loans (37.35) (13.61) Net Cash Position (total cash and other investments net 48.06 47.87 off b
Slide 16: Group Operating Cash Flows
Group Operating Cash Flows 25 21.62 20 17.62 16.92 Operating Cashfow ($ Million) 15.43 15 14.18 13.22 10 8.79 5.63 5 4.26 2.92 0 2015 2016 2017 2018 1Q2019 Operating Cash Flows (excluding China) Operating Cash Flows (including China) iFAST Corporation Ltd. 16
Slide 17: Capital Expenditure
Capital Expenditure 12,000 11,000 10,727 10,500 10,000 9,000 8,000 7,466 7,000 6,615 S$ Thousand 6,000 5,454 5,000 4,000 3,000 2,000 1,000 0 2015 2016 2017 2018 2019F iFAST Corporation Ltd. 17
Slide 18: Number of issued shares
Number of issued shares As at 31 Dec 2018 As at 31 Mar 2019 Total number of issued shares (excluding treasury shares and 266,776,679 267,555,179 subsidiary holdings) iFAST Corporation Ltd. 18
Slide 19: Our Consolidated Financial Position as at Mar 2019
Our Consolidated Financial Position as at 31 Mar 2019 S$’000 NON-CURRENT ASSETS Fixed Assets 3,699 Right-of-use Assets 16,627 Intangible Assets and Goodwill 18,552 Associates 2,808 Other Investments 5,062 Deferred Tax Assets 1,016 Prepayments & Others 201 TOTAL NON-CURRENT ASSETS 47,965 CURRENT ASSE
Slide 20: Our Consolidated Financial Position as at Mar 2019 (cont'd)
Our Consolidated Financial Position as at 31 Mar 2019 (cont’d) S$’000 CURRENT LIABILITIES Uncompleted Contracts – Sellers 28,540 Trade & Other Payables 21,683 Bank Loans 13,613 Lease Liabilities 5,856 Current Tax Payables 2,012 TOTAL CURRENT LIABILITIES 71,704 NON-CURRENT LIABILITIES Deferred Tax Li
Slide 21: First Interim Dividend for FY2019
First Interim Dividend for FY2019 First Interim Dividend for FY 2019 - Schedule Dividend per share 0.75 cents per ordinary share Ex-dividend date 7 May 2019 Record date and time 8 May 2019 (5.00 pm) Payment date 22 May 2019 • For the first interim dividend for 1Q2019, the Directors declared a divide
Slide 22: Strengthening Our Fintech Ecosystem
SECTION II Strengthening Our Fintech Ecosystem iFAST Corporation Ltd. 22
Slide 23: iFAST Fintech Ecosystem
iFAST Fintech Ecosystem (as at 31 Mar 2019) 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 340,000 customer FA Companies accounts in 5 Markets Over 370 compan
Slide 24: The iFAST Fintech Ecosystem
The iFAST Fintech Ecosystem • Products and services: ─ Unit trusts (over 6,200 funds from over 245 fund houses) ─ Bonds (over 1,000 direct bonds) ─ Stocks & ETFs – in 3 markets (Singapore, Hong Kong and US) ─ Discretionary portfolio management services • Over 370 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 period from 2015 to 1Q2019 was 83.2% S$ Million 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
Slide 27: Group AUA grew 8.7% QoQ to a record high of S$8.75 billion
Group AUA grew 8.7% QoQ to a record high of S$8.75 billion S$ Million AUA (as at 31 Mar 2019): S$8.75 billion1 $10,000 $9,000 $8,000 $7,000 $6,000 $5,000 $4,000 $3,000 $2,000 $1,000 $0 Mar-00 Mar-01 Mar-02 Mar-03 Mar-04 Mar-05 Mar-06 Mar-07 Mar-08 Mar-09 Mar-10 Mar-11 Mar-12 Mar-13 Mar-14 Mar-15 Mar
Slide 28: Net revenue as a ratio of average AUA
Net revenue as a ratio of average AUA 0.800% 0.700% 0.122% 0.126% 0.139% 0.119% 0.105% 0.600% 0.500% 0.400% 0.300% 0.615% 0.609% 0.606% 0.596% 0.604% 0.200% 0.100% 0.000% 2015 2016 2017 2018 1Q2019 Recurring net revenue / AUA Non-recurring net revenue / AUA iFAST Corporation Ltd. 28
Slide 29: An Evolving Wealth Management Fintech Platform
An Evolving Wealth Management Fintech Platform • Fintech business models are still evolving globally • Fintech business models are particularly suitable for: ─ Simple products ─ Servicing the retail or mass affluent investors • Empowering B2B partners with improving Fintech capabilities iFAST Corpor
Slide 30: Example 1: iFAST Malaysia Retail Bonds Business
Example 1: iFAST Malaysia Retail Bonds Business • iFAST/FSMOne launched the retail bonds business in Malaysia recently • This follow the introduction of a bond seasoning framework which means that many bonds are now eligible for investors • Hurdles for most players however still remains, given that
Slide 31: Transaction Volume Of Bondsupermart's Affiliated Brokers From Inception
Transaction Volume Of Bondsupermart’s Affiliated Brokers From Inception 170 162.72 160 152.69 150 140 127.30 130 120 116.22 110 102.41 102.43 100 90.36 S$ Million 90 85.14 83.95 80 76.75 70.88 70 68.91 60 53.08 56.64 53.29 50.76 46.66 50 43.43 41.09 40.92 40 35.52 30 20 9.07 9.44 7.80 10 5.14 7.54 2
Slide 32: Example 2: Bringing Down the Fintech Barriers for B2B Partners
Example 2: Bringing Down the Fintech Barriers for B2B Partners • Most financial institutions, big and small, struggle to have good Fintech capabilities ─ Fintech capabilities encompass not just IT, but licensing, compliance and operational considerations as well • iFAST helps to empower various comp
Slide 33: iFAST's Fintech Vision 2028
iFAST’s Fintech Vision 2028 • We will continue to work towards our S$100 billion AUA target by the end of 2028. • Given our constant efforts at improving the range and depth of our products and services, and our presence in 5 markets today, we believe the targets are achievable with good executions.
Slide 34: Our Performance Trends
SECTION III Our Performance Trends iFAST Corporation Ltd. 34
Slide 35: AUA Breakdown: Markets & Products
AUA Breakdown: Markets & Products (as at 31 March 2019) AUA Breakdown By Markets AUA Breakdown by Products 2.3% 3.9% 4.5% 7.9% 7.2% 23.2% 66.6% 84.4% Singapore Hong Kong Unit Trusts Bonds Malaysia Others (China & India) Stocks & ETFs Cash Account iFAST Corporation Ltd. 35
Slide 36: Net sales & Subscription ex-switching
Net sales & Subscription ex-switching S$ Million Net Sales S$ Million Subscription ex-switching $1,000 $4,000 $942 $3,605 $900 $3,500 $786 $800 $3,000 $700 $2,570 $2,500 $600 $500 $2,000 $1,670 $396 $1,574 $400 $373 $1,500 $300 $235 $992 $1,000 $182 $780 $200 $500 $100 $0 $0 2015 2016 2017 2018 1Q18
Slide 37: Recurring and Non-Recurring Net Revenue
Recurring and Non-Recurring Net Revenue S$ (Million) FY2015 FY2016 FY2017 FY2018 1Q2019 Recurring net revenue 34.64 34.71 40.95 48.32 12.55 Non-recurring net revenue 6.89 5.98 8.50 11.30 2.47 Total net revenue 41.53 40.69 49.45 59.62 15.02 YoY Change (%) FY2015 FY2016 FY2017 FY2018 1Q2019 Recurring
Slide 38: Net Revenue – Geographical Segment
Net Revenue – Geographical Segment S$ (Million) FY2015 FY2016 FY2017 FY2018 1Q2019 Singapore 30.04 29.54 34.77 39.30 9.77 Hong Kong 9.55 8.66 10.78 14.26 3.68 Malaysia 1.94 2.26 3.47 5.32 1.39 China - 0.23 0.43 0.75 0.18 Group 41.53 40.69 49.45 59.62 15.02 YoY Change (%) FY2015 FY2016 FY2017 FY2018
Slide 39: Net Revenue – B2B Business Segment
Net Revenue – B2B Business Segment B2B Net Revenue FY2015 FY2016 FY2017 FY2018 1Q2019 (S$ Million) Recurring net revenue 24.50 24.49 28.85 33.88 8.83 Non-recurring net revenue 4.09 3.86 5.15 7.22 1.36 Total B2B net revenue 28.59 28.35 34.00 41.10 10.19 YoY Change (%) FY2015 FY2016 FY2017 FY2018 1Q20
Slide 40: Net Revenue – B2C Business Segment
Net Revenue – B2C Business Segment B2C Net Revenue FY2015 FY2016 FY2017 FY2018 1Q2019 (S$ Million) Recurring net revenue 10.15 10.22 12.10 14.44 3.72 Non-recurring net revenue 2.79 2.12 3.35 4.08 1.11 Total B2C net revenue 12.94 12.34 15.45 18.52 4.83 YoY Change (%) FY2015 FY2016 FY2017 FY2018 1Q201
Slide 41: Profit/Loss – Geographical Segment
Profit/Loss – Geographical Segment Profit/Loss (S$ Million) 1Q2018 1Q2019 YoY Change (%) Singapore 3.00 2.00 -33.4 Hong Kong 0.81 0.67 -16.9 Malaysia 0.41 0.52 +27.2 Other1 (0.03) (0.14) +385.7 Profit before tax (excluding China operation) 4.19 3.05 -27.1 Tax expense (0.29) (0.32) +9.7 Net profit af
Slide 42: Profit/Loss – Geographical Segment
Profit/Loss – Geographical Segment Profit/Loss (S$ Million) FY2015 FY2016 FY20172 FY2018 1Q2019 Singapore 11.82 9.07 10.62 11.86 2.00 Hong Kong 1.65 0.53 1.77 3.42 0.67 Malaysia 0.28 0.38 1.07 1.37 0.52 Other1 (0.02) (0.16) (0.33) 0.52 (0.14) Profit before tax (excluding China operation) 13.73 9.82
Slide 43: 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% 0.738% 0.729% 0.736% 0.711% 0.722% 0.700% 0.615% 0.607% 0.606% 0.606% 0.599% 0.582% 0.587% 0.600% 0.556% 0.551% 0.534% 0.500% 0.400% 0.300% 0.200% 0.100% 0.000% 2015 2016 2017 2018 1Q2019 Net re
Slide 44: 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% 0.738% 0.732% 0.735% 0.714% 0.722% 0.700% 0.652% 0.648% 0.615% 0.625% 0.609% 0.606% 0.614% 0.604% 0.596% 0.600% 0.552% 0.500% 0.400% 0.300% 0.200% 0.100% 0.000% 2015 2016 2017 2018 1Q2019 Net re
Slide 45: Singapore
SINGAPORE • Net revenue grew 0.2% YoY to S$9.77 million in 1Q2019, while net profit before tax fell 33.4% YoY to S$2.00 million in 1Q2019. • Market sentiment was still poor entering 2019 but subsequently recovered in March, as various global markets including those in Asia ex-Japan rose following a
Slide 46: Singapore
SINGAPORE • FSMOne.com had organised its flagship event, FSM INVEST Expo in January 2019, and other events throughout 1Q2019, as part of its continued efforts to connect with investors and enhance its financial education initiatives. • FSMOne.com’s new improved account opening process, which is inte
Slide 47: Hong Kong
HONG KONG • Net revenue increased 8.2% YoY to S$3.67 million, while net profit before tax declined 16.9% YoY to S$0.67 million in 1Q2019. • Hong Kong’s AUA grew 10.2% QoQ to S$2.03 billion as at 31 March 2019. • Given the positive market performance and investor sentiment in 1Q2019 as compared to 4Q
Slide 48: Hong Kong
HONG KONG • For the B2C division, the turnover for bonds reached a record high in 1Q2019, as the higher yielding environment continued to attract the interest of investors. The bond turnover is expected to remain strong in 2019. • For the B2B division, a brand new client website was launched in Apri
Slide 49: Malaysia
MALAYSIA • Net revenue grew 31.7% YoY to S$1.39 million and net profit before tax grew by 27.2% YoY to S$0.52 million in 1Q2019. • Malaysia’s AUA grew 10.6% QoQ to hit S$694.01 million as at 31 March 2019. • While most markets performed better in 1Q2019, investor sentiment and interest in Malaysia o
Slide 50: Malaysia
MALAYSIA • The B2B division is working on revamping its website and mobile application, which will allow clients to transact in the various types of investments products available on the B2B platform more seamlessly. • iFAST Malaysia’s Fintech Solutions division is working towards signing up more fu
Slide 51: China
CHINA • Net revenue for the China operation increased 4.4% YoY in 1Q2019. iFAST China expects to see continuous growth in its revenue in the quarters ahead. • China’s AUA grew 10.2% QoQ to S$96.31 million (equivalent to RMB 478 million) as at 31 March 2019. The overall AUA growth trend is supported
Slide 52: China
CHINA • iFAST China had previously shared that it will be putting forth a Private Fund Management licence application. With the Private Fund Management licence, iFAST China will be able to issue Private Funds with discretionary mandate for accredited investors, while providing transparency in the un
Slide 53: India
INDIA • As at 31 March 2019, iFAST Corp holds an effective 19.3% share in 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. This allows the Group to tap on India’s potential strateg
Slide 54: India
INDIA • The Securities and Exchange Board of India’s (SEBI) has announced to reduce the total expense ratio (TER) of mutual funds by up to 30 basis points and ban all forms of upfront commissions and paying beyond TER in late 2018. • The change in the mutual funds' TER will push financial advisers (
Slide 55: Appendices
SECTION IV Appendices iFAST Corporation Ltd. 55
Slide 56: Business Overview
Business Overview • iFAST Corporation Ltd. is a wealth management fintech platform with assets under administration (AUA) of S$8.75 billion as at 31 Mar 2019 (stock code: AIY). • Main business divisions: ─ Business-to-Consumer (B2C) platform, Fundsupermart (including the new FSMOne multi-products ac
Slide 57: Milestones
Milestones 2000 2008 2014 • Launch of Fundsupermart.com • Launch of iFAST Platform Services • Incorporation of iFAST Platform (B2C) 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 o
Slide 58: Milestones Cont'd
Milestones Cont’d 2016 2017 2019 • Acquisition of a stockbroking • Launch of stocks & ETFs on FSM Hong Kong • MyInfo was integrated on FSM Singapore company and an insurance brokerage • Launch of bonds on FSM Malaysia and online to simplify the account opening process firm in Hong Kong DPMS in Malay
Slide 59: 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 60: Licences Held and Products and Services Available
Licences Held and Products and Services Available (as at end Mar 2019) • Type 1: Dealing in Securities [SFC] • Type 4: Advising on Securities [SFC] • Type 9: Asset Management [SFC] • MPFA • SEHK Participant • HKSCC Participant PRODUCTS AVAILABLE: UT / Bonds / Stocks / ETFs / DPMS • Fund Distributor
Slide 61: 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-house to Focus on broadening the range and depth of investment efficiently and effectively deliver innovative products and asset c
Slide 62: 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 Fintech innovation and regulations, and shifts in consumer behavior. • The Company believes it has the capabilities and licences to tap on
Slide 63: 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*. ─ For Singapore, our key market currently, we have set a 10-year target of AUA S$35 billion*. • Given the tremendous size of Asia’s wealth management industry, and given the robust growt
Slide 64: 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 65: 1Q2019: Activities & Achievements
1Q2019: Activities & Achievements (L-R) FSM SG: FSM Invest Expo 2019 (Singapore); FSM HK: What and Where to Invest 2019 (Hong Kong); FSM MY: What and Where to Invest 2019 (KL & Penang) iFAST Corp’s Pre-AGM Business Update & AGM was held on 16 April 2019 at Novotel Singapore Clarke Quay, where our sh
Slide 66: 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 iFAST Corporation Ltd. 66
Slide 67: Thank You.
Thank You. FOR MORE INFORMATION, PLEASE VISIT www.ifastcorp.com iFAST Corporation Ltd.