Slide 1: 3Q2016 and 9M2016 Results Presentation
3Q2016 and 9M2016 Results Presentation 28 October 2016 PRIVATE & CONFIDENTIAL. NOT FOR EXTERNAL CIRCULATION. CO. REG. NO. R200007899C 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 Content
Table of Content Section Title I Financial Results 3Q2016 (Jul - Sep 2016) and 9M2016 (Jan – Sep 2016) results Financial ratios Financial position Interim dividend II Performance Trends Assets under Administration (AUA) Net sales and subscription excluding switching Recurring net reven
Slide 4: Key Summary
Key Summary • Following a difficult 1H2016, the Group’s profitability saw improvements in 3Q2016. The Group’s net profit (excluding China) saw a 59.3% increase in 3Q2016 from 2Q2016 to S$2.97 million, on the back of a sequential Quarter-on-Quarter (QoQ) increase of 10.3% in net revenue (excluding Ch
Slide 5: Group AUA grew 6.6% QoQ to record S$6.00 billion
Group AUA grew 6.6% QoQ to record S$6.00 billion S$ million AUA (as at 30 Sep 2016): S$6.00 billion¹ $7,000 $6,000 $5,000 $4,000 $3,000 $2,000 $1,000 $- Sep-08 Sep-09 Sep-01 Sep-02 Sep-03 Sep-04 Sep-05 Sep-06 Sep-07 Sep-10 Sep-11 Sep-12 Sep-13 Sep-14 Sep-15 Sep-16 Mar-02 Mar-03 Mar-04 Mar-05 Mar-06
Slide 6: Net Profit of the Group (3Q2016 vs 2Q2016)
Net Profit of the Group (3Q2016 vs 2Q2016) Profit/Loss After Tax QoQ Change (S$ Million) 2Q2016 3Q2016 (%) Singapore 1.86 2.60 +39.4 Hong Kong 0.03 0.28 +663.9 Malaysia 0.01 0.14 +885.7 Others¹ (0.05) (0.04) (21.3) Net profit (excluding China operation) 1.87 2.97 +59.3 China (0.72) (1.06) +47.5 Net
Slide 7: Key Summary
Key Summary • The Directors believe that the Group has a strong balance sheet. Total Cash and other investments stood at S$57.01 million as at 30 September 2016 • The Group’s 2016 Dividend Guidance is: “For FY2016, our Directors intend to recommend and distribute dividends of 60% or more of our Grou
Slide 8: Section I: Financial Results
PRIVATE & CONFIDENTIAL. NOT FOR EXTERNAL CIRCULATION. CO. REG. NO. R200007899C Section I: Financial Results PRIVATE & CONFIDENTIAL. NOT FOR EXTERNAL CIRCULATION. CO. REG. NO. R200007899C 8
Slide 9: Presentation of Group’s Results
Presentation of Group’s Results Presentation of Group’s results (including and excluding China) • In view of the guidance we have provided on our China operation (that the China business would be expected to have a negative impact on the Group’s overall operating profit on a consolidated basis in 20
Slide 10: Financial Results for Group (excluding China operation) (3Q2016 vs 3Q2015)
Financial Results for Group (excluding China operation) (3Q2016 vs 3Q2015) 3Q2015 3Q2016 YoY change (%) S$ (Million) Revenue 20.54 20.80 +1.3 Net revenue 10.14 10.63 +4.8 Other income 0.29 0.31 +6.9 Expenses 7.27 7.96 +9.6 Net finance income 0.23 0.18 -23.5 Share of result of associates, net of tax
Slide 11: Financial Results for Group (including China operation) (3Q2016 vs 3Q2015)
Financial Results for Group (including China operation) (3Q2016 vs 3Q2015) S$ (Million) 3Q2015 3Q2016 YoY change (%) Revenue 20.54 21.00 +2.3 Net revenue 10.14 10.68 +5.3 Other income 0.29 0.31 +6.9 Expenses 7.58 9.13 +20.4 Net finance income 0.25 0.18 -26.4 Share of result of associates, net of tax
Slide 12: Financial Results for Group (excluding China operation) (9M2016 vs 9M2015)
Financial Results for Group (excluding China operation) (9M2016 vs 9M2015) YoY • While market conditions have been 9M2015 9M2016 change adverse in 1H2016, there was an S$ (Million) (%) improvement in 3Q2016, with the FSM Indices - Asia ex-Japan Index Revenue 64.60 58.61 -9.3 rising 8.9% during the q
Slide 13: Financial Results for Group (including China operation) (9M2016 vs 9M2015)
Financial Results for Group (including China operation) (9M2016 vs 9M2015) YoY • As the China Business is at the initial 9M2015 9M2016 change investment phase, the Group’s S$ (Million) (%) expenses linked to the expansion of new services on the China platform Revenue 64.60 59.05 -8.6 increased by 16
Slide 14: Results Overview for Group (excluding China operation)
Results Overview for Group (excluding China operation) FY2012 FY2013¹ FY2014² FY2015 9M2016 S$ (Million) Revenue 56.41 69.47 78.35 85.34 58.61 Net revenue 26.29 31.58 36.68 41.53 29.61 Other income 0.08 0.16 0.24 1.53 1.41 Expenses 22.40 23.58 25.62 30.06 24.14 Net finance income -0.03 0.03 0.10 0.7
Slide 15: Results Overview for Group (including China operation)
Results Overview for Group (including China operation) FY2012 FY2013¹ FY2014² FY2015 9M2016 S$ (Million) Revenue 56.41 69.47 78.35 85.34 59.05 Net revenue 26.29 31.58 36.68 41.53 29.71 Other income 0.08 0.16 0.24 1.53 1.41 Expenses 22.40 23.58 26.14 31.08 26.98 Net finance income -0.03 0.03 0.10 0.8
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% 33.1% 35% 31.1% 30.7% 30% 29.6% 30% 26.0% 26.0% 24.9% 25% 25% 20% 20% 15.0% 15.8% 15.0% 15% 15% 10% 10% 5% 5% 0% 0% 2012 2013 2014 2015 9M2016 2012 2013 2014 2015 9M2016 Notes: 1. The PBT margins
Slide 17: Financial Ratios
Financial Ratios S$ (Million) FY2012 FY2013 FY2014 FY2015 9M2016 Operating 2.33 7.13 10.18 14.18 4.42 Cashflows Capital 0.21 1.57 2.34 5.45 4.26 Expenditure 31 Dec 31 Dec 31 Dec 31 Dec 30 Sep S$ (Million) 2012 2013 2014 2015 2016 Net Current 20.95 20.70 63.16 68.32 65.39 Assets 31 Dec 31 Dec 31 Dec
Slide 18: Cash position
Cash position As at 31 Dec 2015 As at 30 Sep 2016 (S$ million) (S$ million) Cash and cash equivalents 29.52 24.84 Other investments¹ 31.96 32.17 Total cash and other investments 61.48 57.01 Note: 1. Other investments represent investments in financial assets. PRIVATE & CONFIDENTIAL. NOT FOR EXTERNAL
Slide 19: Number of issued shares
Number of issued shares As at 31 Dec 2015 As at 30 Sep 2016 Total number of issued shares 260,977,301 262,970,615 (excluding treasury shares) PRIVATE & CONFIDENTIAL. NOT FOR EXTERNAL CIRCULATION. CO. REG. NO. R200007899C 19
Slide 20: Our Consolidated Financial Position as at 30 Sep 2016
Our Consolidated Financial Position as at 30 Sep 2016 S$’000 NON-CURRENT ASSETS Fixed Assets 2,305 Intangible Assets 8,687 Associates 1,892 Others 311 13,195 CURRENT ASSETS Trade & other receivables 20,920 Prepayments & others 1,358 Other Investments 32,168 Cash & cash equivalents 24,842 79,288 TOTA
Slide 21: Our Consolidated Financial Position as at Sep 2016 – cont’d
Our Consolidated Financial Position as at 30 Sep 2016 – cont’d S$’000 CURRENT LIABILITIES Trade & other payables 13,447 Finance Lease 4 Current tax payable 449 13,900 NON-CURRENT LIABILITIES Deferred Tax 249 Finance Lease 20 269 EQUITY Share Capital 64,142 Accumulated profits 16,257 Other reserves (
Slide 22: Interim Dividend
Interim Dividend Third Interim Dividend for FY2016 - Schedule Dividend per share 0.68 cents per ordinary share 3 November 2016 Ex-dividend date 17 November 2016 Payment date • The Group’s Dividend Guidance is: “For FY2016, our Directors intend to recommend and distribute dividends of 60% or more of
Slide 23: Section II: Performance Trends
PRIVATE & CONFIDENTIAL. NOT FOR EXTERNAL CIRCULATION. CO. REG. NO. R200007899C Section II: Performance Trends PRIVATE & CONFIDENTIAL. NOT FOR EXTERNAL CIRCULATION. CO. REG. NO. R200007899C 23
Slide 24: Group AUA Trends
Group AUA Trends Singapore & Others: 72.9% Hong Kong: 21.3% Malaysia: 5.8% • The Group’s AUA as at 30 Sep 2016 includes the AUA contribution from India Business, as well as the AUA contribution from the China Business (which was soft launched in March 2016) • The AUA contribution from the India Busi
Slide 25: Net sales & Subscription ex-switching
Net sales & Subscription ex-switching S$ million S$ million Net sales¹ Subscription ex-switching² $600 $2,000 $501 $1,670 $500 $458 $1,600 $1,547 $396 $1,365 $400 $1,200 $1,126 $300 $940 $193 $800 $200 $170 $100 $400 $- $- 2012 2013 2014 2015 9M2016 2012 2013 2014 2015 9M2016 Notes: 1. Net sales sto
Slide 26: Net revenue breakdown between recurring and non-recurring sources
Net revenue breakdown between recurring and non-recurring sources Average contribution from recurring net revenue as opposed to non-recurring net revenue in the S$ million period from FY2012 to 9M2016 was 83.3% 45 40 6.9 35 7.2 30 6.0 4.0 25 4.0 4.8 20 18.1 12.3 4.6 34.6 15 4.0 29.5 25.6 25.7 22.3 1
Slide 27: Net revenue as a ratio of average AUA
Net revenue as a ratio of average AUA 0.800% 0.700% 0.144% 0.122% 0.134% 0.096% 0.600% 0.101% 0.500% 0.400% 0.300% 0.591% 0.615% 0.609% 0.571% 0.574% 0.200% 0.100% 0.000% 2012 2013 2014 2015 9M2016 Recurring net revenue / AUA Non-recurring net revenue / AUA Note: 1. The ratio for 9M2016 has been com
Slide 28: 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% 0.707% 0.702% 0.700% 0.672% 0.615% 0.607% 0.591% 0.600% 0.571% 0.572% 0.574% 0.572% 0.528% 0.534% 0.513% 0.500% 0.400% 0.300% 0.200% 0.100% 0.000% 2012 2013 2014 2015 9M2016 Net re
Slide 29: 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% 0.707% 0.704% 0.700% 0.672% 0.640% 0.615% 0.609% 0.591% 0.600% 0.571% 0.572% 0.574% 0.552% 0.528% 0.524% 0.500% 0.400% 0.300% 0.200% 0.100% 0.000% 2012 2013 2014 2015 9M2016 Net re
Slide 30: Recurring and Non-Recurring Net Revenue
Recurring and Non-Recurring Net Revenue S$ (Million) FY2012 FY2013 FY2014 FY2015 9M2016 Recurring net revenue 22.34 25.62 29.48 34.64 25.68 Non-recurring net revenue 3.95 5.96 7.20 6.89 4.03 Total net revenue 26.29 31.58 36.68 41.53 29.71 YoY Change (%) FY2012 FY2013 FY2014 FY2015 9M2016 Recurring n
Slide 31: Net Revenue – Geographical Segment
Net Revenue – Geographical Segment S$ (Million) FY2012 FY2013 FY2014 FY2015 9M2016 Singapore 21.33 24.10 25.72 30.04 21.58 Hong Kong 4.39 6.50 9.48 9.55 6.38 Malaysia 0.57 0.98 1.48 1.94 1.65 China - - - - 0.10 Group 26.29 31.58 36.68 41.53 29.71 YoY Change (%) FY2012 FY2013 FY2014 FY2015 9M2016 Sin
Slide 32: Net Revenue – B2B Business Segment
Net Revenue – B2B Business Segment B2B Net Revenue FY2012 FY2013 FY2014 FY2015 9M2016 (S$ Million) Recurring net revenue 16.03 18.16 21.09 24.50 18.11 Non-recurring net revenue 2.11 3.06 4.46 4.09 2.54 Total B2B net revenue 18.14 21.22 25.55 28.59 20.65 YoY Change (%) FY2012 FY2013 FY2014 FY2015 9M2
Slide 33: Net Revenue – B2C Business Segment
Net Revenue – B2C Business Segment B2C Net Revenue FY2012 FY2013 FY2014 FY2015 9M2016 (S$ Million) Recurring net revenue 6.31 7.46 8.39 10.15 7.57 Non-recurring net revenue 1.84 2.90 2.74 2.79 1.49 Total B2C net revenue 8.15 10.36 11.13 12.94 9.06 YoY Change (%) FY2012 FY2013 FY2014 FY2015 9M2016 Re
Slide 34: Profit/Loss – Geographical Segment
Profit/Loss – Geographical Segment Profit/Loss After Tax (S$ Million) FY2012 FY2013 FY2014 FY2015 9M2016 Singapore 5.64 7.81¹ 9.00² 11.21 6.44 Hong Kong (1.19) 0.40 2.10 1.65 0.35 Malaysia (1.19) (0.59) (0.09) 0.24 0.22 Others³ - - (0.01) (0.02) (0.09) Net profit (excluding China operation) 3.26 7.6
Slide 35: 9M2016 Results & Outlook - Singapore
9M2016 Results & Outlook - Singapore • Singapore’s net profit improved and grew 39.4% QoQ to S$2.60 million in 3Q2016, following a difficult 1H2016 • The sequential improvement in Singapore’s business came on the back of an increase in net revenue, which grew 9.2% QoQ in 3Q2016 as well as an improve
Slide 36: 9M2016 Results & Outlook – Hong Kong
9M2016 Results & Outlook – Hong Kong • Hong Kong’s net profit increased 663.9% QoQ to S$0.28 million in 3Q2016, following a couple of difficult quarters • The sequential improvement in Hong Kong’s business came on the back of an increase in net revenue, which grew 10.8% QoQ in 3Q2016 as well as an i
Slide 37: 9M2016 Results & Outlook – Malaysia
9M2016 Results & Outlook – Malaysia • Malaysia’s net profit after tax rose 885.7% QoQ to S$0.14 million in 3Q2016 • On a YoY basis, net profit rose 15.1% YoY to S$0.14 million in 3Q2016 and 68.2% YoY to S$0.22 million in 9M2016 respectively • Net revenue increased 26.0% YoY to S$0.63 million in 3Q20
Slide 38: 9M2016 Results & Outlook – China
9M2016 Results & Outlook – China • The China business was soft launched in March 2016; the China operation’s loss stood at S$1.06 million in 3Q2016 and S$2.62 million in 9M2016 • Net revenue stood at S$0.05 million in 3Q2016 and S$0.10 million in 9M2016 • The China Business has continued to build it
Slide 39: Section III: Appendices
PRIVATE & CONFIDENTIAL. NOT FOR EXTERNAL CIRCULATION. CO. REG. NO. R200007899C Section III: Appendices PRIVATE & CONFIDENTIAL. NOT FOR EXTERNAL CIRCULATION. CO. REG. NO. R200007899C 39
Slide 40: Business Overview
Business Overview • We are an Internet-based investment products distribution platform with assets under administration (AUA) of S$6.00 billion as at 30 September 2016 (stock code: AIY) • Two main business divisions: – Business-to-Consumer (B2C) website, Fundsupermart.com, targeted at DIY investors
Slide 41: 2000 – 2015 Milestones
2000 – 2015 Milestones 2000 2008 2014 Launch of • Launch of iFAST Platform • Incorporation of iFAST Platform Fundsupermart.com (B2C) Services (B2B) in Hong Kong Services (Shenzhen) Qianhai in in Singapore • Launch of Fundsupermart.com China (B2C) and iFAST Platform Services • Listing on SGX-ST Mainb
Slide 42: 9M2016 Milestones
9M2016 Milestones January April July & August • Completion of acquisition of a • “How Women can be Successful • iFAST Corp debuts on the Singapore stockbroking company in Hong Kong in Managing Their Finances” Governance and Transparency Index • Annual flagship event “What & Where workshop held in Ma
Slide 43: 9M2016 Activities
9M2016 Activities Official opening of Shanghai office (L-R) SCS Challenge for Children 2016 (Singapore); iWALK – Oxfam Brisbane; What and Where to Invest 2016 (Malaysia KL); FSM Invest Expo (Singapore) (L-R) iFAST Wealth Advisers Awards 2016 (Hong Kong); “How Women can be Successful in Managing Thei
Slide 44: Business Model
Business Model PRIVATE & CONFIDENTIAL. NOT FOR EXTERNAL CIRCULATION. CO. REG. NO. R200007899C 44
Slide 45: Our Value Proposition
Our Value Proposition B2B FA Companies, Financial Institutions and Banks: • One platform, multiple investment products • Adoption of recurring revenue business model based on Assets Under Administration (“AUA”) Product Providers • Platform performs efficient collection of fees • IT solutions and bac
Slide 46: Fees Illustration
Fees Illustration B2B Financial Advisers • Upfront Adviser- Commissions assisted Product Providers • Wrap Fees Investors • Platform Fees • Trailer Fees (from Fund Houses) • Upfront B2C Commissions Investors • Platform Fees PRIVATE & CONFIDENTIAL. NOT FOR EXTERNAL CIRCULATION. CO. REG. NO. R200007899
Slide 47: Thank you. For more information, please visit www.ifastcorp.com
Thank you. For more information, please visit www.ifastcorp.com PRIVATE & CONFIDENTIAL. NOT FOR EXTERNAL CIRCULATION. CO. REG. NO. R200007899C 47