Slide 1: 3Q2018 & 9M2018 Results Presentation
3Q2018 & 9M2018 Results Presentation 27 October 2018 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 I Financial Results 3Q2018 (Jul – Sep 2018) and 9M2018 (Jan – Sep 2018) Results Financial Indicators Financial Position Interim Dividends II Building A Leading Asian Wealth Management Fintech Platform The iFAST Fintech Ecosystem The Revenue Drivers Empow
Slide 4: Key Summary
Key Summary • The Group’s Assets Under Administration (AUA) increased 18.7% YoY to S$8.50 billion as at 30 Sep 2018, achieving a ninth consecutive quarter of record AUA levels despite volatile market conditions in the first nine months of 2018 (9M2018) • The Group’s revenue and profitability have al
Slide 5: Key Summary
Key Summary • In 9M2018, net sales stood at S$794 million, compared to S$649 million in 9M2017 • In recent times, the sources of the Group’s net revenue have broadened. In 9M2018, contributions from net interest income from client AUA and Fintech Solutions IT fees have become more important • We con
Slide 6: Key Summary
Key Summary • The Directors have proposed a third interim dividend of 0.75 cents per ordinary share for 3Q2018 (third interim dividend for 3Q2017: 0.75 cents per ordinary share) • In recent months, we have taken steps to work towards a structure whereby in the medium to long term, our Hong Kong and
Slide 7: Group AUA grew 18.7% YoY to record S$8.50 billion
Group AUA grew 18.7% YoY to record S$8.50 billion S$ million AUA (as at 30 Sep 2018): S$8.50 billion¹ $9,000 $8,000 $7,000 $6,000 $5,000 $4,000 $3,000 $2,000 $1,000 $- Mar-00 Sep-00 Mar-01 Sep-01 Mar-02 Sep-02 Mar-03 Sep-03 Mar-04 Sep-04 Mar-05 Sep-05 Mar-06 Sep-06 Mar-07 Sep-07 Mar-08 Sep-08 Mar-09
Slide 8: Financial Results
SECTION I: Financial Results PRIVATE & CONFIDENTIAL. NOT FOR EXTERNAL CIRCULATION. CO. REG. NO. R200007899C iFAST Corporation Ltd. 8
Slide 9: Presentation of Group's Results
Presentation of Group’s Results Presentation of Group’s results (including and excluding China) • In view that our China operation is a relatively new market for the Group, we are presenting our presentation results based on the results of: (1) Group (Singapore, Hong Kong, Malaysia) excluding China
Slide 10: Financial Results for Group (excluding China operation) (3Q2018 vs 3Q2017)
Financial Results for Group (excluding China operation) (3Q2018 vs 3Q2017) YoY change S$ (Million) 3Q20171 3Q20172 3Q2018 (%) Revenue 26.09 26.09 31.23 +19.7 Net revenue 12.88 12.88 15.32 +18.9 Other income 0.65 0.34 0.34 - Expenses 9.83 9.83 11.35 +15.5 Net finance income 0.18 0.18 0.22 +25.7 Share
Slide 11: Financial Results for Group (including China operation) (3Q2018 vs 3Q2017)
Financial Results for Group (including China operation) (3Q2018 vs 3Q2017) YoY change S$ (Million) 3Q20171 3Q20172 3Q2018 (%) Revenue 26.23 26.23 31.38 +19.6 Net revenue 13.02 13.02 15.47 +18.8 Other income 0.65 0.34 0.34 - Expenses 11.06 11.06 12.86 +16.3 Net finance income 0.18 0.18 0.23 +29.4 Sha
Slide 12: Financial Results for Group (excluding China operation) (9M2018 vs 9M2017)
Financial Results for Group (excluding China operation) (9M2018 vs 9M2017) YoY change S$ (Million) 9M20171 9M20172 9M2018 (%) Revenue 72.61 72.61 92.67 +27.6 Net revenue 35.85 35.85 44.21 +23.3 Other income 1.52 0.89 0.90 +1.1 Expenses 26.80 26.80 32.44 +21.0 Net finance income 0.53 0.53 0.68 +28.3
Slide 13: Financial Results for Group (including China operation) (9M2018 vs 9M2017)
Financial Results for Group (including China operation) (9M2018 vs 9M2017) YoY change S$ (Million) 9M20171 9M20172 9M2018 (%) Revenue 72.99 72.99 93.26 +27.8 Net revenue 36.14 36.14 44.80 +24.0 Other income 1.52 0.89 0.90 +1.1 Expenses 30.33 30.33 36.76 +21.2 Net finance income 0.54 0.54 0.71 +31.2
Slide 14: Results Overview for Group (excluding China operation)
Results Overview for Group (excluding China operation) S$ (Million) FY20141 FY2015 FY2016 FY2017 9M2018 Revenue 78.35 85.34 79.89 100.65 92.67 Net revenue 36.68 41.53 40.46 49.01 44.21 Other income 0.24 1.53 1.88 2.50 0.90 Operating expenses 25.62 30.06 33.13 37.40 32.44 Net finance income 0.10 0.75
Slide 15: Results Overview for Group (including China operation)
Results Overview for Group (including China operation) S$ (Million) FY20141 FY2015 FY2016 FY2017 9M2018 Revenue 78.35 85.34 80.60 101.17 93.26 Net revenue 36.68 41.53 40.69 49.45 44.80 Other income 0.24 1.53 1.88 2.50 0.90 Operating expenses 26.14 31.08 37.16 42.28 36.76 Net finance income 0.10 0.80
Slide 16: PBT margin for Group (based on net revenue)
PBT margin for Group (based on net revenue) (excluding China operation) (including China operation) 35% 35% 33.1% 31.1% 30.7% 29.5% 29.8% 29.6% 30% 30% 25% 24.3% 25% 21.3% 20.4% 20% 20% 15.0% 15% 15% 10% 10% 5% 5% 0% 0% 2014 2015 2016 2017 9M2018 2014 2015 2016 2017 9M2018 Note: 1. PBT margins (2014
Slide 17: Financial Indicators
Financial Indicators S$ (Million) FY2014 FY2015 FY2016 FY2017 9M2018 Operating Cashflows 10.18 14.18 5.63 13.22 14.01 Operating Cashflows (excluding China 10.46 15.43 8.79 16.92 16.84 Operation) Capital Expenditure 2.34 5.45 6.61 7.47 6.47 31 Dec 31 Dec 31 Dec 31 Dec 30 Sep S$ (Million) 2014 2015 20
Slide 18: Cash position
Cash position As at 31 Dec 2017 As at 30 Sep 2018 (S$ million) (S$ million) Cash and cash equivalents 33.50 37.86 Other investments¹ 22.41 20.18 Total cash and other investments 55.91 58.04 Less: Short-term Loan - (9.97) Total Cash and Other Investments 55.91 48.07 Net Off Short-Term Loans Debt to E
Slide 19: Number of issued shares
Number of issued shares As at 31 Dec 2017 As at 30 Sep 2018 Total number of issued shares 264,672,618 266,512,579 (excluding treasury shares) 19
Slide 20: Our Consolidated Financial Position as at 30 Sep 2018
Our Consolidated Financial Position as at 30 Sep 2018 S$’000 NON-CURRENT ASSETS Fixed Assets 3,384 Intangible Assets 15,064 Associates 2,322 Other Investments 5,062 Deferred Tax Assets 849 Prepayments & Others 239 TOTAL NON-CURRENT ASSETS 26,920 CURRENT ASSETS Trade & Other Receivables 30,409 Uncomp
Slide 21: Our Consolidated Financial Position as at 30 Sep 2018 (cont'd)
Our Consolidated Financial Position as at 30 Sep 2018 (cont’d) S$’000 CURRENT LIABILITIES Uncompleted Contracts – Sellers 11,673 Trade & Other Payables 19,533 Short-term Loan 9,974 Finance Lease Liabilities 5 Current Tax Payables 1,458 TOTAL CURRENT LIABILITIES 42,643 NON-CURRENT LIABILITIES Deferre
Slide 22: Third Interim Dividend for FY2018
Third Interim Dividend for FY2018 Third Interim Dividend for FY2018 - Schedule Dividend per share 0.75 cents per ordinary share Ex-dividend date 2 Nov 2018 Record date and time 7 Nov 2018 (5.00 pm) Payment date 20 November 2018 • For the third interim dividend for 3Q2018, the Directors proposed a di
Slide 23: Building A Leading Asian Wealth Management Fintech Platform
SECTION II: Building A Leading Asian Wealth Management Fintech Platform iFAST Corporation Ltd. 23
Slide 24: 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 300,000 customer FA Companies accounts in 5 Markets Over 330 companies, and Stock Finan
Slide 25: The iFAST Fintech Ecosystem
The iFAST Fintech Ecosystem • Products and services: – Unit trusts (over 5,700 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 330 financial institutions and other cor
Slide 26: 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 27: 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 2013 to 9M2018 was 82.4% 60 50 8.5 40 8.4 6.9 6.0 7.2 30 6.0 4.0 4.8 20 18.1 4.6 40.9 12.3 36.4 34.6 34.7 4.0 29.5 2
Slide 28: Group AUA grew 18.7% YoY to record S$8.50 billion
Group AUA grew 18.7% YoY to record S$8.50 billion S$ million AUA (as at 30 Sep 2018): S$8.50 billion¹ $9,000 $8,000 $7,000 $6,000 $5,000 $4,000 $3,000 $2,000 $1,000 $- Mar-00 Sep-00 Mar-01 Sep-01 Mar-02 Sep-02 Mar-03 Sep-03 Mar-04 Sep-04 Mar-05 Sep-05 Mar-06 Sep-06 Mar-07 Sep-07 Mar-08 Sep-08 Mar-09
Slide 29: Net revenue as a ratio of average AUA
Net revenue as a ratio of average AUA 0.800% 0.700% 0.122% 0.126% 0.138% 0.144% 0.105% 0.600% 0.500% 0.400% 0.300% 0.615% 0.609% 0.606% 0.596% 0.591% 0.200% 0.100% 0.000% 2014 2015 2016 2017 9M2018 Recurring net revenue / AUA Non-recurring net revenue / AUA 29
Slide 30: Empowering B2B Partners with Greater Fintech Capabilities
Empowering B2B Partners with Greater Fintech Capabilities • Over the years, the B2B division of iFAST Corp has been working on providing the best platform services and infrastructure for FA companies and financial institutions to grow their advisory business, client base and AUA. The services we pro
Slide 31: Empowering B2B Partners with Greater Fintech Capabilities
Empowering B2B Partners with Greater Fintech Capabilities • In response to the increasing demand from our B2B business partners, iFAST Fintech Solutions division was set up in 2017, and iFAST’s in-house IT capabilities allow us to help our business partners and other financial institutions develop f
Slide 32: Medium to Long-term Planning for iFAST Greater China Business
Medium to Long-term Planning for iFAST Greater China Business • iFAST Corp has announced on 21 August 2018 the appointment of PricewaterhouseCoopers (“PWC”) as the lead financial adviser to advise and assist the company in identifying and discussing with potential institutional and/or other investor
Slide 33: Our Performance Trends
SECTION III: Our Performance Trends iFAST Corporation Ltd. 33
Slide 34: AUA Breakdown: Markets & Products
AUA Breakdown: Markets & Products AUA Breakdown By Markets AUA Breakdown by Products 2.3% 3.5% 3.4% 7.5% 6.6% 24.1% 66.1% 86.5% Singapore Hong Kong Unit Trusts Bonds Malaysia Others (China & India) Stocks & ETFs Cash Account 34
Slide 35: Net sales & Subscription ex-switching
Net sales & Subscription ex-switching S$ million Net Sales S$ million Subscription ex-switching $1,000 $3,500 $942 $900 $3,000 $2,888 $794 $800 $2,570 $700 $2,500 $649 $600 $2,000 $1,843 $501 $500 $1,670 $1,547 $1,574 $396 $1,500 $400 $300 $1,000 $235 $200 $500 $100 $- $- 2014 2015 2016 2017 9M17 9M
Slide 36: Recurring and Non-Recurring Net Revenue
Recurring and Non-Recurring Net Revenue S$ (Million) FY2014 FY2015 FY2016 FY2017 9M2018 Recurring net revenue 29.48 34.64 34.71 40.95 36.38 Non-recurring net revenue 7.20 6.89 5.98 8.50 8.42 Total net revenue 36.68 41.53 40.69 49.45 44.80 YoY Change (%) FY2014 FY2015 FY2016 FY2017 9M2018 Recurring n
Slide 37: Net Revenue – Geographical Segment
Net Revenue – Geographical Segment S$ (Million) FY2014 FY2015 FY2016 FY2017 9M2018 Singapore 25.72 30.04 29.54 34.77 29.93 Hong Kong 9.48 9.55 8.66 10.78 10.66 Malaysia 1.48 1.94 2.26 3.47 3.62 China - - 0.23 0.43 0.59 Group 36.68 41.53 40.69 49.45 44.80 YoY Change (%) FY2014 FY2015 FY2016 FY2017 9M
Slide 38: Net Revenue – B2B Business Segment
Net Revenue – B2B Business Segment B2B Net Revenue FY2014 FY2015 FY2016 FY2017 9M2018 (S$ Million) Recurring net revenue 21.09 24.50 24.49 28.85 25.52 Non-recurring net revenue 4.46 4.09 3.86 5.15 5.25 Total B2B net revenue 25.55 28.59 28.35 34.00 30.77 YoY Change (%) FY2014 FY2015 FY2016 FY2017 9M2
Slide 39: Net Revenue – B2C Business Segment
Net Revenue – B2C Business Segment B2C Net Revenue FY2014 FY2015 FY2016 FY2017 9M2018 (S$ Million) Recurring net revenue 8.39 10.15 10.22 12.10 10.86 Non-recurring net revenue 2.74 2.79 2.12 3.35 3.17 Total B2C net revenue 11.13 12.94 12.34 15.45 14.03 YoY Change (%) FY2014 FY2015 FY2016 FY2017 9M20
Slide 40: Profit/Loss – Geographical Segment
Profit/Loss – Geographical Segment YoY YoY Profit/Loss Change Change (S$ Million) 3Q20171 3Q2018 (%) 9M20171 9M2018 (%) Singapore 2.78 3.46 +24.0 8.43 9.67 +14.7 Hong Kong 0.58 0.83 +44.5 1.23 2.65 +114.5 Malaysia 0.19 0.22 +14.5 0.76 0.98 +29.3 Other2 (0.06) (0.02) -68.3 (0.30) (0.11) -64.2 Profit
Slide 41: Profit/Loss – Geographical Segment
Profit/Loss – Geographical Segment Profit/Loss (S$ Million) FY2014 FY2015 FY2016 FY2017 9M2018 Singapore 9.371 11.82 9.07 11.91 9.67 Hong Kong 2.10 1.65 0.53 1.82 2.65 Malaysia (0.04)3 0.28 0.38 1.07 0.98 Other2 (0.01) (0.02) (0.16) (0.33) (0.11) Profit before tax (excluding China operation) 11.42 1
Slide 42: 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% 0.735% 0.711% 0.700% 0.615% 0.607% 0.606% 0.591% 0.600% 0.600% 0.582% 0.556% 0.534% 0.539% 0.513% 0.500% 0.400% 0.300% 0.200% 0.100% 0.000% 2014 2015 2016 2017 9M2018 Net re
Slide 43: 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% 0.734% 0.714% 0.700% 0.652% 0.615% 0.625% 0.609% 0.606% 0.591% 0.596% 0.602% 0.600% 0.552% 0.524% 0.500% 0.400% 0.300% 0.200% 0.100% 0.000% 2014 2015 2016 2017 9M2018 Net re
Slide 44: Progress of Individual Markets: Singapore
Progress of Individual Markets Singapore • AUA of the Singapore operation grew 14.2% YoY, reaching S$5.62 billion as at 30 Sep 2018 • Net revenue grew 17.5% YoY to S$29.93 million in 9M2018, while net profit before tax grew 14.7% YoY to S$9.67 million in 9M2018 • Global markets continued to be turbu
Slide 45: Progress of Individual Markets: Singapore
Progress of Individual Markets Singapore • In 3Q2018, ETF sales and activities were especially strong as the platform had been raising awareness among investors that they can invest in ETFs (including during Investment Offer Periods for newly- launched ETFs) online and at a low competitive cost. FSM
Slide 46: Progress of Individual Markets: Hong Kong
Progress of Individual Markets Hong Kong • Hong Kong’s AUA grew 27.5% YoY to S$2.05 billion as at 30 Sep 2018 • Net revenue increased 34.9% YoY to S$10.66 million and net profit before tax improved 114.5% to S$2.65 million in 9M2018 • With the recent weak performance in emerging markets and Asian eq
Slide 47: Progress of Individual Markets: Malaysia
Progress of Individual Markets Malaysia • Malaysia’s AUA grew 26.1% YoY to hit S$641 million as at 30 Sep 2018 • Net revenue grew 46.3% YoY to S$3.62 million and net profit before tax grew by 29.3% YoY to S$0.98 million in 9M2018 • Despite volatile market conditions and poor investors sentiment in 3
Slide 48: Progress of Individual Markets: China
Progress of Individual Markets China • China’s AUA grew 123.9% YoY to RMB 503 million as at 30 Sep 2018, and also achieved a QoQ growth despite volatile market conditions in 3Q2018 • Benefitting from increasing growth in both the onshore and offshore Chinese segments over the period, net revenue in
Slide 49: Progress of Individual Markets: China
Progress of Individual Markets China • Account opening figures crossed 30,000 in 3Q2018, with a strong QoQ growth in the account opening number seen in 3Q2018. • iFAST China continues to ramp up the array of services provided to investors and partners, such as new portfolios and technology innovatio
Slide 50: Progress of Individual Markets: India
Progress of Individual Markets India • As at 30 Sep 2018, iFAST Corp holds an effective 19.2% share of iFAST Financial India Pvt Ltd, the key business of the India business • iFAST Financial India Pvt Ltd is an India-incorporated company engaged in the distribution of investment products including m
Slide 51: Appendices
SECTION IV: Appendices iFAST Corporation Ltd. 51
Slide 52: Business Overview
Business Overview • iFAST Corporation Ltd. is a wealth management fintech platform with assets under administration (AUA) of S$8.50 billion as at 30 Sep 2018 (stock code: AIY) • Main business divisions: – Business-to-Consumer (B2C) platform, Fundsupermart (including its new FSMOne multi- products ac
Slide 53: 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 54: 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 55: 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 56: Licences Held and Products and Services Available
Licences Held and Products and Services Available (as at end Sep 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 57: 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 58: 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 59: 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 behaviour • The Company believes it has the capabilities
Slide 60: 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 61: 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 62: 3Q2018 Activities
3Q2018 Activities (L-R) FSM HK Asia Investment Opportunities Seminar (Hong Kong); FSM Choice Awards 2018 – Fund House Panel Discussion (Singapore) (L-R) iFAST Corp - 2Q2018 & 1H2018 Results Briefing & Fintech Vision Presentation (Singapore); FSM MY Recommended Unit Trust Awards 2018/19 (L-R) Singapo
Slide 63: 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 63
Slide 64: Thank you.
Thank you. For more information, Please visit www.ifastcorp.com PRIVATE AND CONFIDENTIAL. NOT FOR EXTERNAL CIRCULATION. CO. REG. NO. R200007899C 64