Slide 1: 4Q2021 & FY2021 Results Presentation
iFAST Corporation Ltd. 4Q2021 & FY2021 Results Presentation 14 FEBRUARY 2022
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: Contents
Contents Key Summary Pg. 4 4Q2021 (Oct–Dec 2021) & FY2021 (Jan-Dec 2021) Results Pg. 8 Section I Financial Indicators Financial Results Proposed Final Dividends Section II iFAST’s Four-Year Plan Pg. 22 iFAST’s Four-Year Plan & The Future of Wealth Management and Banking Proposed UK Bank
Slide 4: Key Summary
Key Summary • The Group’s assets under administration (“AUA”) continued to register new record levels, reaching S$19.00 billion as at 31 December 2021, a growth of 31.5% YoY. The AUA of unit trusts, its key investment asset class, grew to a record S$13.89 billion as at 31 December 2021, a growth of
Slide 5: Key Summary
Key Summary • On 7 January 2022, the Group announced its intention to acquire the UK-based BFC Bank Limited (“UK Bank”) from BFC Group Holdings. iFAST Corp expects the proposed acquisition to contribute some initial start-up losses. Based on the Group’s 85% stake in the UK Bank, its estimated loss t
Slide 6: Group AUA grew 31.5% YoY to S$19.00 billion
Group AUA grew 31.5% YoY to S$19.00 billion as at 31 December 2021 S$ million AUA (as at 31 Dec 2021): S$19.00 billion1 $19,500.00 $18,000.00 $16,500.00 $15,000.00 $13,500.00 $12,000.00 $10,500.00 $9,000.00 $7,500.00 $6,000.00 $4,500.00 $3,000.00 $1,500.00 $- Jun-01 Jun-02 Jun-03 Jun-04 Jun-05 Jun-0
Slide 7: Net Inflows & Gross Unit Trusts (UT) subscription
Net Inflows & Gross Unit Trusts (UT) subscription S$ million Net Inflows S$ million Gross UT Subscriptions $4,000 $8,000 $3,745 $7,052 $3,500 $7,000 $3,160 $3,000 $6,000 $5,647 $2,500 $5,000 $2,000 $4,000 $1,500 $2,908 $3,053 $2,870 $3,000 $942 $976 $1,000 $2,000 $786 $500 $1,000 $- $- 2017 2018 201
Slide 8: Financial Results
SECTION I Financial Results 8
Slide 9: Financial Results for Group (4Q2021 vs 4Q2020)
Financial Results for Group (4Q2021 vs 4Q2020) S$ (Million) 4Q2020 4Q2021 YoY change (%) Revenue 47.90 54.55 +13.9 Net revenue 24.33 28.23 +16.0 Other income 1.56 -0.39 NM Operating Expenses 17.61 19.65 +11.6 Net finance (cost) / income -0.06 0.05 NM Share of results of associates, net of tax -0.27
Slide 10: Financial Results for Group (FY2021 vs FY2020)
Financial Results for Group (FY2021 vs FY2020) S$ (Million) FY2020 FY2021 YoY change (%) Revenue 169.93 216.20 +27.2 Net revenue 85.86 113.22 +31.9 Other income 5.21 0.49 -90.6 Operating Expenses 65.29 77.68 +19.0 Net finance income 0.03 0.13 +432.0 Share of results of associates, net of tax -0.41 -
Slide 11: Results Overview for Group
Results Overview for Group S$ (Million) FY20171 FY2018 FY2019 FY2020 FY2021 Revenue 101.17 121.24 125.41 169.93 216.20 Net revenue 49.45 59.62 65.20 85.86 113.22 Other income 1.08 1.16 2.04 5.21 0.49 Operating expenses 42.19 49.78 56.06 65.29 77.68 Net finance income/(costs) 0.74 0.83 -0.06 0.03 0.1
Slide 12: PBT Margin for Group (Based on Net Revenue)
PBT Margin for Group (Based on Net Revenue) 35.0% 31.6% 29.6% 30.0% 25.0% 20.7% 20.0% 17.7% 17.0% 15.0% 10.0% 5.0% 0.0% 2017 2018 2019 2020 2021 Note: 1. PBT margins (2017) were restated as a result of adoption of SFRS(I)s with effect from 1 January 2018 12
Slide 13: Return on Equity
Return on Equity 30.0% 25.8% 25.0% 21.8% 20.0% 15.0% 13.1% 10.9% 9.7% 10.0% 5.0% 0.0% 2017 2018 2019 2020 2021 13
Slide 14: Financial Indicators
Financial Indicators S$ (Million) FY2017 FY2018 FY2019 FY2020 FY2021 EBITA 12.96 16.44 17.49 32.98 45.01 Net Cash Position1 55.91 48.06 40.15 53.28 59.29 Operating Cash Flows 13.22 17.62 19.38 41.56 46.53 Capital Expenditure2 7.47 10.73 11.90 12.63 21.62 Net Current Assets 60.18 56.62 49.86 58.35 68
Slide 15: Net Cash Position
Net Cash Position As at 31 Dec 2021 (S$ million) Cash and cash equivalents 44.10 Other investments¹ 15.19 Total cash and other investments 59.29 Less: Bank loans - Net Cash Position 59.29 (total cash and other investments net off bank loans) Gross Debt-to-Equity Ratio 0.00% Net Debt-to-Equity Ratio
Slide 16: Group Operating Cash Flows
Group Operating Cash Flows S$ million 50.00 46.53 45.00 41.56 40.00 35.00 30.00 25.00 19.38 20.00 17.62 15.00 13.22 10.00 5.00 0.00 2017 2018 2019 2020 2021 16
Slide 17: Capital Expenditure
Capital Expenditure S$ million 22.00 21.62 20.00 18.00 16.00 14.00 12.63 11.90 12.00 10.73 10.00 8.00 7.47 6.00 4.00 2.00 0.00 2017 2018 2019 2020 2021 17
Slide 18: Number of issued shares
Number of issued shares As at 31 Dec 2020 As at 31 Dec 2021 As at 14 Feb 2022 Total number of issued shares (excluding treasury shares 272,407,635 276,946,913 290,986,9131 and subsidiary holdings) Note: 1. Including the 14,000,000 new shares (arising from the share placement) and the 40,000 new shar
Slide 19: Our Consolidated Financial Position
Our Consolidated Financial Position As at 31 Dec 20 As at 31 Dec 21 S$’000 S$’000 ASSETS Plant and Equipment 4,283 7,552 Right-of-use Assets 18,538 14,198 Intangible Assets and Goodwill 25,500 32,623 Associates 5,982 6,552 Other Investments 3,944 2,919 Deferred Tax Assets 1,099 2,448 Contract Costs
Slide 20: Our Consolidated Financial Position
Our Consolidated Financial Position As at 31 Dec 20 As at 31 Dec 21 S$’000 S$’000 EQUITY Share Capital 66,976 67,577 Reserves 37,133 61,076 EQUITY ATTRIBUTABLE TO OWNERS OF THE COMPANY 104,109 128,653 Non-Controlling Interests (709) (1,018) TOTAL EQUITY 103,400 127,635 LIABILITIES Deferred Tax Liabi
Slide 21: Proposed Final Dividend for FY2021
Proposed Final Dividend for FY2021 Proposed Final Dividend for FY2021 - Schedule Dividend per share 1.40 cents per ordinary share Ex-dividend date 6 May 2022 Record date and time 9 May 2022 (5.00 pm) Payment date 19 May 2022 • For the final dividend for FY2021, the Directors proposed a dividend of 1
Slide 22: iFAST's Four-Year Plan & Proposed UK Bank Acquisition
Section II iFAST’s Four-Year Plan & Proposed UK Bank Acquisition 22
Slide 23: iFAST's Four-Year Plan
iFAST’s Four-Year Plan 1. Get Bigger and Better: Continue to work on increasing the scale and quality of its Fintech wealth management platform in various markets, in line with the Group’s target AUA of S$100 billion by 2028. 2. Accelerate Hong Kong Growth: Substantially accelerate the growth of the
Slide 24: Four-Year Plan: Get Bigger and Better
Four-Year Plan: Get Bigger and Better • The Group’s focus all these years on ensuring that it continues to make progress as a Fintech wealth management platform in all the markets that it operates in will continue. • The Group will continue to work on increasing the scale and quality of its platform
Slide 25: Four-Year Plan: Accelerate Hong Kong Growth
Four-Year Plan: Accelerate Hong Kong Growth • The Group expects to substantially accelerate the growth of its overall Hong Kong business in the next four years, particularly in 2023, 2024 and 2025. • The Group expects its existing Fintech wealth management platform business to continue to grow, whil
Slide 26: Guidance on Hong Kong Targets
Guidance on Hong Kong Targets • In the Group’s 3Q2021 & 9M2021 results released on 23 October 2021, the Group gave the following guidance on the targeted revenue and PBT margin for its overall Hong Kong business in 2024 and 2025: o Gross Revenue Targets Target to achieve Gross Revenue of >HKD1 bil
Slide 27: Four-Year Plan: Add Digital Banking and Other Capabilities
Four-Year Plan: Add Digital Banking and Other Capabilities • The Group believes that Fintech businesses in most countries around the world are still in their early stages of growth. Clear long-term planning is needed to survive and thrive in the Fintech and financial world in the next 10 years and b
Slide 28: Four-Year Plan: Add Digital Banking and Other Capabilities
Four-Year Plan: Add Digital Banking and Other Capabilities • The Group therefore expects to be pursuing more financial licences in different jurisdictions, and make strategic investments in adjacent Fintech capabilities. • One of the services that is closely linked to wealth management is digital ba
Slide 29: Four-Year Plan: Truly Global Business Model
Four-Year Plan: Truly Global Business Model • The Internet has brought about many different new business models, including truly global business models that are far more scalable and competitive on a global basis. • Truly global business models are those that can operate from just one or a few count
Slide 30: The Future of Wealth Management and Digital Banking
The Future of Wealth Management and Digital Banking • The Group believes that the future of wealth management is one where many investors from various emerging markets will be looking for the best wealth management platforms across the world that can provide them seamless access and connectivity to
Slide 31: Adding a Digital Bank to the iFAST Fintech Ecosystem
Adding a Digital Bank to the iFAST Fintech Ecosystem Online Account Multi-Currency Opening Deposits Digital Bank Payment / Banking as a Remittance Service (BaaS) Fund Stock Houses Exchanges Retail FA Companies Banks Investors Holds relevant Investment Cash licences in 5 Products Management markets &
Slide 32: Banks and Wealth Management
Banks and Wealth Management • In most countries around the world, the biggest players in the wealth management industry are banks. This is not surprising given that banks have the advantage of consumers’ cash sitting within the banks. • iFAST Corp has made substantial progress as a wealth management
Slide 33: Adding a Digital Bank to the iFAST Fintech Ecosystem
Adding a Digital Bank to the iFAST Fintech Ecosystem • Adding a digital bank to the iFAST Fintech Ecosystem will have the effect of allowing the Group to acquire more customers globally at a faster pace, as it taps into the growing demand of customers around the world for good wealth management and
Slide 34: Proposed UK Bank Acquisition
Proposed UK Bank Acquisition • On 7 January 2022, the Group announced its intention to acquire the UK-based BFC Bank Limited (“UK Bank”) from BFC Group Holdings. The Group will have an 85% stake in BFC Bank. BFC Bank has the requisite banking licence in the UK. • The proposed acquisition of the UK B
Slide 35: Proposed UK Bank Acquisition
Proposed UK Bank Acquisition • The Acquisition Amount will be £25.0 million (equivalent to approximately S$45.9 million), comprising an estimated amount of £22.6 million (equivalent to approximately S$41.5 million) to fund the acquisition of BFC Bank and £2.4 million (equivalent to approximately S$4
Slide 36: Performance Trend
SECTION III \ Performance Trend 36
Slide 37: AUA Breakdown: Markets & Products
AUA Breakdown: Markets & Products (as at 31 December 2021) AUA Breakdown By Markets AUA Breakdown By Products 3.8% 4.8% 9.6% 17.7% 15.1% 4.4% 71.5% 73.1% Singapore Hong Kong Unit Trusts Bonds Malaysia Others (China & India) Stocks & ETFs Cash Account 37
Slide 38: Net Revenue Breakdown between Recurring and Non-recurring Sources
Net Revenue Breakdown between Recurring and Non-recurring Sources Average contribution from recurring net revenue as opposed to non-recurring net revenue S$ million in the period from 2020 to 2021 was 69.9% 120 100 34.5 80 25.5 60 12.3 11.3 8.5 40 6.9 6.0 78.7 7.2 6.0 60.4 4.0 48.3 52.9 20 4.8 40.9
Slide 39: Net Revenue, Operating Expenses and Operating Profit as a Ratio of Average AUA
Net Revenue, Operating Expenses and Operating Profit as a Ratio of Average AUA 0.800% 0.732% 0.735% 0.731% 0.757% 0.700% 0.665% 0.126% 0.139% 0.138% 0.225% 0.600% 0.625% 0.614% 0.203% 0.629% 0.500% 0.576% 0.400% 0.456% 0.300% 0.606% 0.596% 0.594% 0.533% 0.462% 0.200% 0.181% 0.209% 0.100% 0.106% 0.12
Slide 40: Recurring and Non-recurring Net Revenue
Recurring and Non-recurring Net Revenue S$ (Million) FY2017 FY2018 FY2019 FY2020 FY2021 Recurring net revenue 40.95 48.32 52.94 60.39 78.69 Non-recurring net revenue 8.50 11.30 12.26 25.47 34.53 Total net revenue 49.45 59.62 65.20 85.86 113.22 YoY Change (%) FY2017 FY2018 FY2019 FY2020 FY2021 Recurr
Slide 41: Net Revenue – Geographical Segment
Net Revenue – Geographical Segment S$ (Million) FY2017 FY2018 FY2019 FY2020 FY2021 Singapore 34.77 39.30 41.95 56.33 73.24 Hong Kong 10.78 14.26 16.71 19.22 24.41 Malaysia 3.47 5.32 5.97 8.55 13.16 China 0.43 0.75 0.57 1.76 2.41 Group 49.45 59.62 65.20 85.86 113.22 YoY Change (%) FY2017 FY2018 FY201
Slide 42: Net Revenue – B2B Business Segment
Net Revenue – B2B Business Segment B2B Net Revenue FY2017 FY2018 FY2019 FY2020 FY2021 (S$ Million) Recurring net revenue 28.85 33.88 37.12 42.34 55.73 Non-recurring net revenue 5.15 7.22 7.19 10.88 16.42 Total B2B net revenue 34.00 41.10 44.31 53.22 72.15 YoY Change (%) FY2017 FY2018 FY2019 FY2020 F
Slide 43: Net Revenue – B2C Business Segment
Net Revenue – B2C Business Segment B2C Net Revenue FY2017 FY2018 FY2019 FY2020 FY2021 (S$ Million) Recurring net revenue 12.10 14.44 15.81 18.04 22.96 Non-recurring net revenue 3.35 4.08 5.08 14.60 18.11 Total B2C net revenue 15.45 18.52 20.89 32.64 41.07 YoY Change (%) FY2017 FY2018 FY2019 FY2020 F
Slide 44: Profit/Loss – Geographical Segment
Profit/Loss – Geographical Segment Profit/Loss YoY Change YoY Change (S$ Million) 4Q2020 4Q2021 (%) FY2020 FY2021 (%) Singapore 6.91 6.62 -4.1 21.32 28.43 +33.4 Hong Kong 1.73 2.03 +17.4 5.79 8.39 +44.8 Malaysia 0.94 1.28 +35.9 3.75 5.39 + 43.5 China (1.30) (1.62) +24.6 (4.88) (5.82) +19.3 Other1 (0
Slide 45: Profit/Loss – Geographical Segment
Profit/Loss – Geographical Segment Profit/Loss (S$ Million) FY20173 FY2018 FY2019 FY2020 FY2021 Singapore 10.62 11.86 9.96 21.32 28.43 Hong Kong 1.77 3.42 4.42 5.79 8.39 Malaysia 1.07 1.37 1.76 3.75 5.39 China (4.17) (4.60) (4.82) (4.88) (5.82) Other1 (0.33) 0.52 (0.05) (0.41) (0.35) Profit before t
Slide 46: Progress of Individual Markets: Singapore
Progress of Individual Markets SINGAPORE • Net revenue for the Singapore operation increased by 12.9% YoY to S$18.3 million in 4Q2021 and 30.0% YoY to S$73.2 million in FY2021. • The AUA of the Singapore operation grew 35.8% YoY and 4.4% QoQ to $13.58 billion as at 31 December 2021. The continued gr
Slide 47: Progress of Individual Markets: Singapore
Progress of Individual Markets SINGAPORE • The iGM wealth advisory team strength grew 46.3% YoY as of 31 December 2021, while the average AUA per adviser stood at S$17.6 million. Over the quarter, new trading capabilities for China A-shares and Bursa Malaysia were enabled, allowing iGM clients to di
Slide 48: Progress of Individual Markets: Hong Kong
Progress of Individual Markets HONG KONG • Net revenue for the Hong Kong operation increased by 16.3% YoY to S$6.0 million in 4Q2021 and 27.0% YoY to S$24.4 million in FY2021. • The AUA of the Hong Kong operation fell 2.8% QoQ but grew 7.7% YoY to S$2.86 billion as at 31 December 2021. The QoQ decli
Slide 49: Progress of Individual Markets: Hong Kong
Progress of Individual Markets HONG KONG • The AUA of the B2C FSMOne.com division fell 2.1% YoY, mainly driven by a decline in bond AUA resulting from the significant drop in the bond market value and bond redemption. Unit trust sales (ex-switching) grew 22% QoQ in 4Q2021 and 4% YoY in 2021. Bond tu
Slide 50: Progress of Individual Markets: Malaysia
Progress of Individual Markets MALAYSIA • Net revenue for the Malaysia operation increased by 46.8% YoY to S$3.4 million in 4Q2021 and 54.0% YoY to S$13.2 million in FY2021. • The AUA of the Malaysia operation grew 7.7% QoQ and 38.2% YoY to a record high of S$1.83 billion as at 31 December 2021, sup
Slide 51: Progress of Individual Markets: Malaysia
Progress of Individual Markets MALAYSIA • Despite the jittery global equity markets and risker bonds space, the B2B division saw a significant pickup in unit trust sales and bond turnover in 4Q2021. Gross sales for unit trust grew 17.3% QoQ and 47.2% YoY in 4Q2021. Bond turnover grew 38.6% QoQ in 4Q
Slide 52: Progress of Individual Markets: China
Progress of Individual Markets CHINA • Net revenue for the China operation fell 17.7% QoQ to S$0.53 million in 4Q2021, but grew 37.3% YoY to S$2.41 million in FY2021. • Despite 2021 being a volatile year for the China market, the AUA of the China operation increased 75% YoY and stood at over RMB2.33
Slide 53: Progress of Individual Markets: India
Progress of Individual Markets INDIA • As at 31 December 2021, iFAST Corp holds an effective 39.35% share in iFAST Financial India Pvt Ltd, the key business of the Group’s India business, which engages in the distribution of wealth management products in India. • The AUA of the India operation incre
Slide 54: Appendices
SECTION IV Appendices 54
Slide 55: Business Overview
Business Overview • iFAST Corporation Ltd. is a wealth management fintech platform with assets under administration (AUA) of S$19.00 billion as at 31 December 2021 (stock code: AIY). • Main business divisions: o Business-to-Consumer (B2C): FSMOne.com (formerly “Fundsupermart”) a multi-product online
Slide 56: Milestones
Milestones Launch of iFAST Platform Acquired a stake in the holding Services (B2B) in HK Incorporation of iFAST company of iFAST India Business Launch of iFAST Launch of Fundsupermart.com Platform Services (Shenzhen) Launch of HKEX stockbroking on Platform Services (B2C) and iFAST Platform
Slide 57: Milestones
Milestones Launch of US stockbroking in HK iFAST SG received the “Fastest Growing SGX-ST iFAST Corp won the "Best Investor Relations Member” award for the second consecutive year - Silver Award" in the small cap category at Launch of revamped FSMOne mobile applications the Singapore Corporat
Slide 58: iFAST Fintech Ecosystem
iFAST Fintech Ecosystem (as at 31 Dec 2021) Connecting All to Help Investors Invest Globally and Profitably B2C Fundsupermart.com / FSMOne.com / Fund Houses Bondsupermart Holds relevant licences in 5 markets FA Companies Banks/ Over Bond Dealers 690,000 customer accounts Over 550 companies, in 5 Fin
Slide 59: The iFAST Fintech Ecosystem
The iFAST Fintech Ecosystem • Products and services: ─ Unit trusts (over 9,800 funds from over 280 fund houses) ─ Bonds (over 1,500 direct bonds) ─ Stocks & ETFs – in 5 markets (Singapore, Hong Kong, US, Malaysia & China A Shares) ─ Discretionary portfolio management services • Over 550 financial in
Slide 60: 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 more than two thirds of our net revenue • Sources of Recurring Net Revenue o Trailer fee
Slide 61: Breakdown of Net Revenue (FY2020)
Breakdown of Net Revenue (FY2020) Fintech Solutions IT fees, Others, 1.4% 2.8% FX Margin, 7.4% Transaction Fees/Commission Income (Other Products), 12.8% Trailer Fee, 42.3% Transaction Fees/Commission Income (UT and Portfolio Management Services), 5.5% Net Interest Income Arising from Clients' AUA,
Slide 62: Licences Held and Products and Services Available
Licences Held and Products and Services Available (as at 31 December 2021) LICENCES HELD : • Fund Distributor Qualification [CSRC] • Associate Member of AMAC • Member of SAMC • Registered Private Fund Manager [AMAC] PRODUCTS AVAILABLE : UT LICENCES HELD: • Type 1: Dealing in Securities [SFC] • Type
Slide 63: Our Value Proposition
Our Value Proposition B2B B2C PRODUCT PROVIDERS CUSTOMERS DIY INVESTORS • One platform, multiple • One platform, multiple investment products • One platform, multiple B2C and B2B customers • Adoption of recurring revenue business model investment products • No need to enter into based on Assets Unde
Slide 64: 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 OTHER ADVISORY COMPANIES FINTECH SOLUTIONS FACILITIES SERVICE FEES 64
Slide 65: 4Q2021: Activities & Achievements
4Q2021: Activities & Achievements (L-R): iFAST Corp won the Corporate Excellence and Resilience Award at the Singapore Corporate Awards 2020/2021 in November; FSMOne.com Singapore launched the China A- Shares and Bursa trading services in October and November respectively; iGM Malaysia achieved AUA
Slide 66: Thank You!
TO HELP INVESTORS AROUND THE WORLD INVEST GLOBALLY AND PROFITABLY THANK YOU! For more information, please visit: www.ifastcorp.com iFAST Corporation Ltd.