Slide 1: 1Q2020 Results Presentation
23 APRIL 2020 1Q2020 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
Slide 3: Table of Contents
Table of Contents o Key Summary Pg. 4 o 1Q2020 (Jan – Mar 2020) Results Pg. 8 Section I o Financial Indicators Financial Results o Interim Dividends o AUA Breakdown: Markets & Products Pg. 23 Section II o Recurring and Non-recurring Net Revenue Our Performance o Performance by Geographical and Busin
Slide 4: Key Summary
Key Summary • The Group reported a record quarterly net profit of S$3.64 million in 1Q2020, an increase of 126.8% compared to 1Q2019. This was achieved on the back of a 25.3% YoY increase in net revenue, and a 41.5% YoY increase in gross revenue. The record high of both profit and revenue in 1Q2020
Slide 5: Key Summary
Key Summary • In Singapore, the Group’s B2C division (FSMOne.com) has just started on a close-to-100% work-from-home policy given the current elevated COVID-19 mitigation responses in the country (circuit breaker period). For the Singapore office as a whole, there is a 90% work- from-home policy dur
Slide 6: Group AUA fell 4.6% QoQ but grew 9.1% YoY to S$9.54 billion
Group AUA fell 4.6% QoQ but grew 9.1% YoY to S$9.54 billion as at 31 March 2020 S$ million AUA (as at 31 Mar 2020): S$9.54 billion1 $11,000 $10,000 $9,000 $8,000 $7,000 $6,000 $5,000 $4,000 $3,000 $2,000 $1,000 $- Mar-01 Mar-02 Mar-03 Mar-04 Mar-05 Mar-06 Mar-07 Mar-08 Mar-09 Mar-10 Mar-11 Mar-12 Ma
Slide 7: Net inflows & Subscription ex-switching
Net inflows & Subscription ex-switching S$ million Net inflows1 S$ million Subscription ex-switching $1,200 $5,000 $4,500 $4,328 $976 $1,000 $942 $4,000 $3,605 $786 $3,500 $800 $3,000 $590 $2,453 $600 $2,500 $2,229 $2,000 $400 $1,574 $1,500 $235 $182 $1,000 $780 $200 $500 $- $- 2016 2017 2018 2019 1
Slide 8: Financial Results
SECTION I Financial Results iFAST Corporation Ltd. 8
Slide 9: Presentation of Group's Results
Presentation of Group’s Results Presentation of Group’s results (including and excluding China) • In view that our China operation is a relatively new market for the Group, we are presenting our presentation results based on the results of: 1) Group excluding China operation; and 2) Group including
Slide 10: Financial Results for Group (excluding China operation) (1Q2020 vs 1Q2019)
Financial Results for Group (excluding China operation) (1Q2020 vs 1Q2019) S$ (Million) 1Q2019 1Q2020 YoY change (%) Revenue 27.01 38.21 +41.5 Net revenue 14.84 18.56 +25.1 Other income 0.61 0.55 -9.6 Expenses 12.06 13.69 +13.5 Net finance (costs) /income -0.17 0.19 NM Share of results of associates
Slide 11: Financial Results for Group (including China operation) (1Q2020 vs 1Q2019)
Financial Results for Group (including China operation) (1Q2020 vs 1Q2019) S$ (Million) 1Q2019 1Q2020 YoY change (%) Revenue 27.19 38.48 +41.5 Net revenue 15.02 18.82 +25.3 Other income 0.61 0.56 -8.5 Expenses 13.47 15.09 +12.1 Net finance (costs) / income -0.16 0.17 NM Share of results of associate
Slide 12: Results Overview for Group (excluding China operation)
Results Overview for Group (excluding China operation) S$ (Million) FY2016 FY20171 FY2018 FY2019 1Q2020 Revenue 79.89 100.65 120.50 124.84 38.21 Net revenue 40.46 49.01 58.87 64.64 18.56 Other income 1.88 1.10 1.16 2.04 0.55 Operating expenses 33.13 37.31 44.12 50.43 13.69 Net finance income/(costs)
Slide 13: Results Overview for Group (including China operation)
Results Overview for Group (including China operation) S$ (Million) FY2016 FY20171 FY2018 FY2019 1Q2020 Revenue 80.60 101.17 121.24 125.41 38.48 Net revenue 40.69 49.45 59.62 65.20 18.82 Other income 1.88 1.08 1.16 2.04 0.56 Operating expenses 37.16 42.19 49.78 56.06 15.09 Net finance income/(costs)
Slide 14: PBT margin for Group (based on net revenue)
PBT margin for Group (based on net revenue) (excluding China operation) (including China operation) 35.0% 25.0% 23.3% 29.2% 29.7% 30.0% 20.7% 26.8% 20.0% 24.3% 24.9% 17.7% 25.0% 17.0% 15.0% 15.0% 20.0% 15.0% 10.0% 10.0% 5.0% 5.0% 0.0% 0.0% 2016 2017 2018 2019 1Q2020 2016 2017 2018 2019 1Q2020 Note:
Slide 15: Financial Indicators
Financial Indicators S$ (Million) FY2016 FY2017 FY2018 FY2019 1Q2020 Net Cash Position1 54.59 55.91 48.06 40.15 40.61 Operating Cash Flows 5.63 13.22 17.62 19.38 8.03 Operating Cash Flows (excluding China 8.79 16.92 21.62 23.54 8.95 Operation) Capital Expenditure2 6.61 7.47 10.73 11.90 2.52 Net Curr
Slide 16: Net Cash Position
Net Cash Position As at 31 Mar 2020 (S$ million) Cash and cash equivalents 21.68 Other investments¹ 22.76 Total cash and other investments 44.44 Less: Bank loans 3.83 Net Cash Position 40.61 (total cash and other investments net off bank loans) Gross Debt-to-Equity Ratio 4.05% Net Debt-to-Equity Rat
Slide 17: Group Operating Cash Flows
Group Operating Cash Flows S$ million 25 23.54 21.62 20 19.38 17.62 16.92 15 13.22 10 8.79 8.95 8.03 5.63 5 0 2016 2017 2018 2019 1Q2020 Operating Cash Flows (excluding China) Operating Cash Flows (including China) iFAST Corporation Ltd. 17
Slide 18: Capital Expenditure
Capital Expenditure S$ thousand 11,901 12,000 11,000 10,727 10,810 10,000 9,000 8,000 7,466 7,000 6,615 6,000 5,454 5,000 4,000 3,000 2,339 2,000 1,714 1,554 1,000 214 0 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020F* Note: * Does not take into consideration the successful application of the Dig
Slide 19: Number of issued shares
Number of issued shares As at 31 Dec 2019 As at 31 Mar 2020 Total number of issued shares (excluding treasury shares and 268,732,479 269,827,707 subsidiary holdings) iFAST Corporation Ltd. 19
Slide 20: Our Consolidated Financial Position
Our Consolidated Financial Position As at 31 Dec 19 As at 31 Mar 20 S$’000 S$’000 NON-CURRENT ASSETS Plant and Equipment 3,689 3,896 Right-of-use Assets 14,390 13,460 Intangible Assets and Goodwill 22,212 22,712 Subsidiaries - - Associates 5,375 5,920 Other Investments 5,329 5,289 Deferred Tax Asset
Slide 21: Our Consolidated Financial Position
Our Consolidated Financial Position As at 31 Dec 19 As at 31 Mar 20 S$’000 S$’000 EQUITY Share Capital 66,180 66,326 Other Reserves 23,877 28,111 EQUITY ATTRIBUTABLE TO OWNERS OF THE COMPANY 90,057 94,437 Non-Controlling Interests (421) (461) TOTAL EQUITY 89,636 93,976 NON-CURRENT LIABILITIES Deferr
Slide 22: First Interim Dividend for FY2020
First Interim Dividend for FY2020 First Interim Dividend for FY2020 - Schedule Dividend per share 0.75 cents per ordinary share Ex-dividend date 22 May 2020 Record date and time 26 May 2020 (5.00 pm) Payment date 5 June 2020 • For the first interim dividend for 1Q2020, the Directors declared a divid
Slide 23: Our Performance Trends
SECTION II Our Performance Trends iFAST Corporation Ltd. 23
Slide 24: AUA Breakdown: Markets & Products
AUA Breakdown: Markets & Products (as at 31 March 2020) AUA Breakdown By Markets Breakdown by Products 2.9% 6.0% 8.8% 7.4% 7.7% 22.8% 65.5% 78.9% Singapore Hong Kong Unit Trusts Bonds Malaysia Others (China & India) Stocks & ETFs Cash Account iFAST Corporation Ltd. 24
Slide 25: 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 2016 to 1Q2020 was 80.9% S$ million 70 60 12.3 11.3 50 8.5 40 6.9 6.0 7.2 30 6.0 52.9 4.0 48.3 4.8 20 18.1 4.6 40.9 12.3 34.6 3
Slide 26: Net revenue as a ratio of average AUA
Net revenue as a ratio of average AUA 0.900% 0.800% 0.700% 0.203% 0.105% 0.126% 0.139% 0.138% 0.600% 0.500% 0.400% 0.300% 0.609% 0.606% 0.596% 0.594% 0.589% 0.200% 0.100% 0.000% 2016 2017 2018 2019 1Q2020 Recurring net revenue / AUA Non-recurring net revenue / AUA iFAST Corporation Ltd. 26
Slide 27: Recurring and Non-Recurring Net Revenue
Recurring and Non-Recurring Net Revenue S$ (Million) FY2016 FY2017 FY2018 FY2019 1Q2020 Recurring net revenue 34.71 40.95 48.32 52.94 13.99 Non-recurring net 5.98 8.50 11.30 12.26 4.83 revenue Total net revenue 40.69 49.45 59.62 65.20 18.82 YoY Change (%) FY2016 FY2017 FY2018 FY2019 1Q2020 Recurring
Slide 28: Net Revenue – Geographical Segment
Net Revenue – Geographical Segment S$ (Million) FY2016 FY2017 FY2018 FY2019 1Q2020 Singapore 29.54 34.77 39.30 41.95 12.19 Hong Kong 8.66 10.78 14.26 16.71 4.82 Malaysia 2.26 3.47 5.32 5.97 1.55 China 0.23 0.43 0.75 0.57 0.26 Group 40.69 49.45 59.62 65.20 18.82 YoY Change (%) FY2016 FY2017 FY2018 FY
Slide 29: Net Revenue – B2B Business Segment
Net Revenue – B2B Business Segment B2B Net Revenue FY2016 FY2017 FY2018 FY2019 1Q2020 (S$ Million) Recurring net revenue 24.49 28.85 33.88 37.12 9.86 Non-recurring net revenue 3.86 5.15 7.22 7.19 2.39 Total B2B net revenue 28.35 34.00 41.10 44.31 12.25 YoY Change (%) FY2016 FY2017 FY2018 FY2019 1Q20
Slide 30: Net Revenue – B2C Business Segment
Net Revenue – B2C Business Segment B2C Net Revenue FY2016 FY2017 FY2018 FY2019 1Q2020 (S$ Million) Recurring net revenue 10.22 12.10 14.44 15.81 4.13 Non-recurring net revenue 2.12 3.35 4.08 5.08 2.44 Total B2C net revenue 12.34 15.45 18.52 20.89 6.57 YoY Change (%) FY2016 FY2017 FY2018 FY2019 1Q202
Slide 31: Profit/Loss – Geographical Segment
Profit/Loss – Geographical Segment Profit/Loss (S$ Million) 1Q2019 1Q2020 YoY Change (%) Singapore 2.00 3.52 +76.1 Hong Kong 0.67 1.58 +133.8 Malaysia 0.52 0.48 -6.4 Other1 (0.14) (0.07) -48.5 Profit before tax (excluding China operation) 3.05 5.51 +80.5 Tax expense (0.32) (0.79) +148.4 Net profit a
Slide 32: Profit/Loss – Geographical Segment
Profit/Loss – Geographical Segment Profit/Loss (S$ Million) FY2016 FY20172 FY2018 FY2019 1Q2020 Singapore 9.07 10.62 11.86 9.96 3.52 Hong Kong 0.53 1.77 3.42 4.42 1.58 Malaysia 0.38 1.07 1.37 1.76 0.48 Other1 (0.16) (0.33) 0.52 (0.05) (0.07) Profit before tax (excluding China operation) 9.82 13.13 1
Slide 33: Transaction Volume Of Bondsupermart's Affiliated Brokers From Inception
Transaction Volume Of Bondsupermart’s Affiliated Brokers From Inception S$ million 700.00 612.30 600.00 516.78 500.00 400.00 353.47 300.00 249.72 229.80 200.00 184.09 174.40 127.30 100.00 29.92 13.38 0.00 2012 2013 2014 2015 2016 2017 2018 2019 1Q19 1Q20 iFAST Corporation Ltd. 33
Slide 34: Progress of Individual Markets: Singapore
Progress of Individual Markets SINGAPORE • Net revenue grew 24.8% YoY to S$12.19 million in 1Q2020, while net profit before tax rose 76.1% YoY to S$3.52 million in 1Q2020. • The AUA of the Singapore operation grew 7.2% YoY, reaching S$6.25 billion as at 31 March 2020. While global markets including
Slide 35: Progress of Individual Markets: Singapore
Progress of Individual Markets SINGAPORE • On FSMOne.com, the seamless online services have attracted a record number of new account holders in 1Q2020, as investors wanted a convenient way to start their online investment journey. Investors also saw investment bargains amidst the market volatility a
Slide 36: Progress of Individual Markets: Hong Kong
Progress of Individual Markets HONG KONG • Net revenue grew 31.2% YoY to S$4.82 million and net profit before tax grew 133.8% YoY to S$1.58 million in 1Q2020. • Hong Kong’s AUA grew 7.1% YoY to S$2.17 billion as at 31 March 2020, but fell by about 5.0% QoQ amidst market volatilities resulting from t
Slide 37: Progress of Individual Markets: Malaysia
Progress of Individual Markets MALAYSIA • Net revenue grew 11.4% YoY to S$1.55 million and net profit before tax fell 6.4% YoY to S$0.48 million in 1Q2020. • Malaysia’s AUA grew 21.4% YoY to S$842.70 million as at 31 March 2020. On a QoQ basis, AUA dipped about 3.0% despite the fall in global financ
Slide 38: Progress of Individual Markets: Malaysia
Progress of Individual Markets MALAYSIA • The B2B division saw record sales in unit trusts and bonds in 1Q2020. Advisers have been leveraging the current market situation to help their clients add positions to equity funds on the cheap. The platform saw a pick up in bonds as clients bought Governmen
Slide 39: Progress of Individual Markets: China
Progress of Individual Markets CHINA • Net revenue in the China operation grew 43.1% YoY to S$0.26 million in 1Q2020. • China’s AUA grew 24.1% YoY and 17.8% QoQ to approximately S$120 million (RMB 595 million) as at 31 March 2020. • AUA across both the B2B2C and iGM business division recorded positi
Slide 40: Progress of Individual Markets: India
Progress of Individual Markets INDIA • As at 31 March 2020, iFAST Corp holds an effective 38.0% 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 unit trust in India. • India’s AUA fell 18.5% YoY
Slide 41: Appendices
SECTION IV Appendices iFAST Corporation Ltd. 41
Slide 42: Business Overview
Business Overview • iFAST Corporation Ltd. is a wealth management fintech platform with assets under administration (AUA) of S$9.54 billion as at 31 March 2020 (stock code: AIY). • Main business divisions: o Business-to-Consumer (B2C) platform, Fundsupermart (including the new FSMOne multi-products
Slide 43: Milestones
Milestones Launch of Fundsupermart.com (B2C) in Hong Kong • Distribution of bonds and ETFs in Launch of “FSM Mobile” Singapore iPhone application. The • Launch of online discretionary portfolio Android version of the “FSM Launch of management service (DPMS) in Hong Kong Mobile” was launched in Funds
Slide 44: Milestones (cont'd)
Milestones (cont’d) • iFAST Singapore clinched “Fastest Growing SGX-ST • Launch of HKEX stockbroking services on FSM Hong Kong Member” Award at SGX Awards Night 2019 • Launch of bonds on FSM Malaysia and online DPMS in • iFAST Malaysia launched retail bonds under the Securities Malaysia Commission M
Slide 45: iFAST Fintech Ecosystem
iFAST Fintech Ecosystem (as at 31 Mar 2020) 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 460,000 customer FA Companies accounts in 5 Markets Over 400 compan
Slide 46: The iFAST Fintech Ecosystem
The iFAST Fintech Ecosystem • Products and services: ─ Unit trusts (over 7,000 funds from over 270 fund houses) ─ Bonds (over 1,300 direct bonds) ─ Stocks & ETFs – in 3 markets (Singapore, Hong Kong and US) ─ Discretionary portfolio management services • Over 400 financial institutions and other cor
Slide 47: 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 approximately 80% of our net revenue • Sources of Non-Recurring Net Revenue ─ Transactio
Slide 48: Licences Held and Products and Services Available
Licences Held and Products and Services Available (as at 31 March 2020) LICENCES HELD: • Fund Distributor Qualification [CSRC] • Associate Member of AMAC • Member of SAMC PRODUCTS AVAILABLE: UT LICENCES HELD: • Registered Investment Adviser with SEBI LICENCES HELD: • Registered Mutual Fund Distribut
Slide 49: 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 50: 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% 0.790% 0.729% 0.736% 0.733% 0.711% 0.700% 0.607% 0.606% 0.599% 0.596% 0.582% 0.591% 0.600% 0.572% 0.583% 0.556% 0.551% 0.500% 0.400% 0.300% 0.200% 0.100% 0.000% 2016 2017 2018 2019 1Q2020 Net re
Slide 51: 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% 0.793% 0.732% 0.735% 0.731% 0.714% 0.700% 0.652% 0.625% 0.629% 0.636% 0.609% 0.606% 0.614% 0.596% 0.594% 0.589% 0.600% 0.500% 0.400% 0.300% 0.200% 0.100% 0.000% 2016 2017 2018 2019 1Q2020 Net re
Slide 52: 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. 52
Slide 53: 1Q2020: Activities & Achievements
1Q2020: Activities & Achievements (L-R) FSM SG: FSM Invest Expo 2020; FSM MY: What and Where to Invest 2020 (KL & Penang); HK: What and Where to Invest 2020 by FSM & iGM (L-R) iFAST Singapore received the “Fastest Growing SGX-ST Member 2019” award for the second year in a row; iFAST Singapore recogn
Slide 54: 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.