Ifs Capital Ltd. · SGX:I49
Ifs Capital — H1 2015 Earnings Presentation
37 slides from Ifs Capital's earnings presentation, Aug 12, 2015
Slide 1: SGX Financial Statements and Related Announcement
Financial Statements and Related Announcement::Second Quarter and/ or Half Yearly... Page 1 of 1 Financial Statements and Related Announcement::Second Quarter and/ or Half Yearly Results Issuer & Securities Issuer/ Manager IFS CAPITAL LIMITED Securities IFS CAPITAL LIMITED - SG1A35000706 - I49 Stapl
Slide 2: Table of Contents
(Registra ation no: 198700 0827C) Seco ond Quarterr And Half-Y Year Unaudited Financiial Statemen nts and Dividend Anno ouncement for the t Period EEnded 30 Jun ne 2015 TAB BLE OF CO ONTENTS Ite em Description n P Page No. Noo. 1(a a)(i) Conso olidated Stattement of Pro ofit or Loss and Statemen nt
Slide 3: Consolidated Statement of Profit or Loss
(Regisstration no: 1987 700827C) S Second Quaarter And Half-Year Unaudited Financial State ements and Dividend A Announceme ent for the P Period Ende ed 30 June 2 2015 1 1(a)(i) Consolidated Statem ment of Profitt or Loss for tthe Second Quarter Q And H Half-Year Ende ed 30 June Note 2nd Quarter 1st
Slide 4: Consolidated Statement of Comprehensive Income
Consolidated Statement of Comprehensive Income for the Second Quarter And Half-Year Ended 30 June Note 2nd Quarter 1st Half 1(a) 2015 2014 +/(-) 2015 2014 +/(-) (ii) S$’000 S$’000 % S$’000 S$’000 % (Loss)/profit for the period (169) 703 NM 460 1,876 (75.5) Other comprehensive income Items that are o
Slide 5: Explanatory Notes to Consolidated Statement of Profit or Loss
1(a)(ii) Explanatory Notes to Consolidated Statement of Profit or Loss The following items have been included in arriving at Group net (loss)/profit for the period: 2nd Quarter 1st Half 2015 2014 +/(-) 2015 2014 +/(-) S$’000 S$’000 % S$’000 S$’000 % Investment income - dividend, fee and interest inc
Slide 6: Explanatory Notes to Statement of Profit or Loss (cont'd)
1(a)(ii) Explanatory Notes to Consolidated Statement of Profit or Loss (cont’d) Comments on Major Consolidated Statement of Profit or Loss and Consolidated Statement of Comprehensive Income Variances (a) The decline in gross written premiums of the insurance subsidiary, ECICS Limited (“ECICS”) for 2
Slide 7: (Loss)/Earnings Per Ordinary Share
1(a)(iii) (Loss)/Earnings Per Ordinary Shares Group 2nd Quarter 1st Half 2015 2014 2015 2014 (Loss)/earnings per ordinary share - on weighted average number of ordinary shares in issue (cents) (0.32) 0.25 (0.11) 0.83 - on fully diluted basis (cents) (0.32) 0.25 (0.11) 0.83 (Loss)/earnings per ordina
Slide 8: Statements of Financial Position
1(b)(i) Statements of Financial Position Group Company 30/06/2015 31/12/2014 30/06/2015 31/12/2014 Note S$’000 S$’000 S$’000 S$’000 Non-current assets Property, plant and equipment 18,142 17,231 14,801 15,111 Intangible assets 831 642 145 184 Investment property (a) 1,322 - - - Subsidiaries - - 75,8
Slide 9: Comments on Major Statements of Financial Position Variances
Comments on Major Statements of Financial Position Variances (a) The increase in investment property of the Group was due to the reclassification from non- current assets - property, plant and equipment, as part of the new office unit purchased by our Thailand subsidiary was recently leased out. (b)
Slide 10: Group's Borrowings and Net Asset Value
1(b)(ii) Group’s Borrowings Unsecured As at 30/06/2015 As at 31/12/2014 S$’000 S$’000 Amount repayable in one year or less, or on demand 216,746 182,419 Amount repayable after one year 35,233 46,683 251,979 229,102 Details of any collateral Nil. 1(b)(iii) Net Asset Value Group Company 30/06/2015 31/
Slide 11: Consolidated Statement of Cash Flows
1(c) Consolidated Statement of Cash Flows for the Second Quarter And Half-Year Ended 30 June 2nd Quarter 1st Half 2015 2014 2015 2014 Note S$’000 S$’000 S$’000 S$’000 Cash flows from operating activities (Loss)/profit for the period (169) 703 460 1,876 Adjustments for: Amortisation of intangible ass
Slide 12: Consolidated Statement of Cash Flows (cont'd)
1(c) Consolidated Statement of Cash Flows for the Second Quarter And Half-Year Ended 30 June (cont’d) 2nd Quarter 1st Half 2015 2014 2015 2014 Note S$’000 S$’000 S$’000 S$’000 Cash flows from investing activities Proceeds from sale of property, plant and equipment 15 - 15 6 Purchase of property, pla
Slide 13: Explanatory Notes to Statement of Cash Flows
Explanatory Notes to Consolidated Statement of Cash Flows (a) Net cash used in operating activities The higher net cash used in operating activities in 2Q 2015 and 1H 2015 was mainly due to higher drawdown of factoring receivables as well as loans, advances, hire purchase and leasing receivables as
Slide 14: Statements of Changes in Equity
1(d)(i) Statements of Changes in Equity Attributable to owners of the Company Fair Non- Share Capital value Translation Accumulated controlling Total capital reserve reserve reserve profits Total interests equity Group S$’000 S$’000 S$’000 S$’000 S$’000 S$’000 S$’000 S$’000 2014 At 1 January 2014 88
Slide 15: Statements of Changes in Equity and Share Capital
1(d)(i) Statements of Changes in Equity (cont’d) Share Fair value Accumulated Total capital reserve profits equity Company $’000 S$’000 S$’000 S$’000 2014 At 1 January 2014 88,032 1,485 22,445 111,962 Total comprehensive income for 1st quarter Profit for 1st quarter - - 393 393 Other comprehensive i
Slide 16: Treasury Shares, Audit and Accounting Policies
1(d)(iv) Sales, Transfers, Disposal, Cancellation and/or use of Treasury Shares Not applicable. 2 Audit The figures have not been audited or reviewed by the Company’s auditors. 3 Auditors’ Report Not applicable. 4 Accounting Policies Except as disclosed in paragraph 5, the Group has applied the same
Slide 17: Review of Group Performance
6 Review of Group Performance 2nd Quarter 2015 (“2Q 2015”) versus 2nd Quarter 2014 (“2Q 2014”) Group’s operating profit before allowances for 2Q 2015 of $2.1 million was 34% lower compared to $3.1 million for 2Q 2014 due to lower operating income, mitigated by lower operating expenses and net claims
Slide 18: Prospects
8 Prospects The regional business environment remains challenging, with economic growth slowing and sharp currency depreciation. Business volumes in Singapore continued to improve in the second quarter of 2015 as compared to same quarter last year with factoring and loan volumes growing by 7% and 18
Slide 19: Interested Person Transactions Mandate
11 Interested Person Transactions Mandate There is no general mandate obtained from shareholders on Interested Person Transactions. By Order of the Board Chionh Yi Chian Company Secretary 12 August 2015 18
Slide 20: Confirmation by the Board Pursuant to Rule 705(4)
IFS Capital Limited (Registration no: 198700827C) Confirmation By The Board Pursuant to Rule 705(4) of the Listing Manual On behalf of the Board of Directors of IFS Capital Limited (“the Company”), we, the undersigned, hereby confirm to the best of our knowledge that nothing has come to the attentio
Slide 21: Half Year 2015 Unaudited Results Presentation
IFS Capital Limited IFS Capital Limited Half Year 2015 Unaudited Results Presentation 13 August 2015 1
Slide 22: Contents and Disclaimer
IFS Capital Limited Contents Slide 1. Highlights 3-5 2. (a) Group Statement of Profit or Loss 6 (b) Group Statement of Comprehensive Income 7 (c) Group Operating Expenses 8 3. Key Financial Ratios 9 4. Group Performance Review 10 - 11 5. Results of Subsidiaries - Regional Operations 12 - 13 - ECICS
Slide 23: Highlights
IFS Capital Limited Highlights Lower Group net profit of $460,000 (1H 2014: $1.9m). Higher net earned premium revenue of $2.0m (1H 2014: $1.8m). Lower non-interest income of $5.8m (1H 2014: $7.0m). Operating expenses little changed at $10.9m (1H 2014: $10.8m). Lower net claims incurred of
Slide 24: Highlights (cont'd)
IFS Capital Limited Highlights (cont’d) Regional operations posted lower net profit after NCI of $1.0m (1H 2014: $1.3m). EPS (cents) : Loss 0.11(1H 2014: Earning 0.83) NAV per Share (cents) : 78.1 (FY 2014: 80.2) Stable net interest margin at around 5.9%. 4
Slide 25: Highlights (cont'd): 2Q 2015 vs 1Q 2015
IFS Capital Limited Highlights (cont’d) 2Q 2015 vs 1Q 2015 Turnaround in 2Q 2015 business volume in Singapore and Malaysia. While factoring volume under Singapore financing operations remains unchanged, loan business volume grew by 28%, resulting in improvement in performance Q-o-Q. Singapore
Slide 26: Group Statement of Profit or Loss
IFS Capital Limited Group Statement of Profit or Loss 1H 1H +/(-) ($’000) 2015 2014 % Net Interest Income 9,224 9,104 1.3 Net Earned Premium Revenue ^ 2,040 1,840 10.9 Non-Interest Income 5,804 7,049 (17.7) Total Income 17,068 17,993 (5.1) Operating Expenses (10,913) (10,824) 0.8 Operating Profit be
Slide 27: Group Statement of Comprehensive Income
IFS Capital Limited Group Statement of Comprehensive Income 1H 1H +/(-) ($’000) 2015 2014 % Profit for the period 460 1,876 (75.5) Other comprehensive income Items that are or may be reclassified subsequently to profit or loss Net change in fair value of available-for-sale financial assets 675 171 N
Slide 28: Group Operating Expenses
IFS Capital Limited Group Operating Expenses 1H 1H +/(-) ($’000) % % 2015 2014 % Commission 360 3.3 287 2.6 25.4 Business Development 370 3.4 371 3.4 (0.3) Staff Costs 6,486 59.4 6,828 63.1 (5.0) Depreciation & Amortisation 718 6.6 646 6.0 11.1 General Administration 2,979 27.3 2,692 24.9 10.7 Total
Slide 29: Key Financial Ratios
IFS Capital Limited 1H 1H Key Financial Ratios 2015 2014 % Return on Ave Equity – After Tax (%) (0.1) 1.0 NM Earnings per Ordinary Share (cts) (0.11) 0.83 NM Net Asset Value per Share (cts) 78.1 83.3 (6.2) Leverage (times) 2.52 2.12 18.9 Gross Gearing (times) 2.15 1.78 20.8 9
Slide 30: Group Performance Review – 1H 2015 vs 1H 2014
IFS Capital Limited Group Performance Review – 1H 2015 vs 1H 2014 Group’s operating income of $17.1m was $0.9m or 5% lower compared to 1H 2014 of $18.0m mainly due to: - Lower fee and commission income largely on lower reinsurance commission received and lower loans fee earned. - Lower other incom
Slide 31: Group Performance Review (cont'd)
IFS Capital Limited Group Performance Review – 1H 2015 vs 1H 2014 (cont’d) Group’s operating expenses almost flat at $10.9m (1H 2014: $10.8m). With lower net claims incurred of $0.5m (1H 2014: $1.0m) mainly due to lower net claims paid on bond calls, Group’s operating profit before allowances wa
Slide 32: Regional Operations – Thailand, Indonesia & Malaysia
IFS Capital Limited Regional Operations – Thailand, Indonesia & Malaysia 1H 1H +/(-) ($’000) 2015 2014 % Net Interest Income 5,600 5,354 4.6 Non-Interest Income 2,883 3,018 (4.5) Operating Expenses (3,875) (3,889) (0.4) Operating Profit before Allowances 4,608 4,483 2.8 Allowances (2,558) (1,974) 29
Slide 33: Regional Operations (cont'd)
IFS Capital Limited Regional Operations (cont’d) - Thailand, Indonesia & Malaysia Thailand subsidiary’s net profit after NCI was almost flat at $1.7m. Indonesia subsidiary posted a net loss of $168,000 (1H 2014: profit of $127,000) mainly impacted by higher allowances for loan losses. Malaysia
Slide 34: ECICS Limited
IFS Capital Limited ECICS Limited 1H 1H +/(-) ($’000) 2015 2014 % Gross Written Premiums 3,699 4,378 (15.5) Net Earned Premium Revenue 2,055 1,865 10.2 Fee and Investment Income 1,420 2,154 (34.1) Claims Incurred (508) (957) (46.9) Operating Expenses (2,875) (2,375) 21.1 Operating Profit before Allo
Slide 35: ECICS Limited (cont'd)
IFS Capital Limited ECICS Limited (cont’d) Net profit after tax lower at $205,000 (1H 2014: $784,000) due to lower fee and investment income and higher operating expenses, partly offset by higher net earned premium revenue and lower net claims incurred. Higher net earned premium revenue of $2.1m
Slide 36: Prospects
IFS Capital Limited Prospects Regional business environment remains challenging, with economic growth slowing and sharp currency depreciation. Business volumes in Singapore continued to improve in 2Q 2015 as compared to same quarter last year with factoring and loan volumes growing by 7% and 18%
Slide 37: The End – Thank You
IFS Capital Limited THE END THANK YOU 17