Slide 1: 4Q2015 & FY2015 Results Presentation
4Q2015 & FY2015 Results Presentation 18 February 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 4Q2015 (Oct-Dec 2015) and FY2015 (Jan-Dec 2015) results Financial ratios Financial position Dividend II Performance Trends Assets under Administration (AUA) Net sales and subscription excluding switching Recurring net revenue, non-recurring net reve
Slide 4: Key summary
Key summary • Net profit rose 15.1% YoY in FY2015 to S$12.10 million and fell 1.2% YoY in 4Q2015 to S$2.86 million (excluding IPO expenses of S$1.95 million in FY2014 and 4Q2014) • Net profit rose 41.3% YoY in FY2015 and 201.7% YoY in 4Q2015 Net profit, (including IPO expenses of S$1.95 million in F
Slide 5: Section I: Financial Results
PRIVATE & CONFIDENTIAL. NOT FOR EXTERNAL CIRCULATION. CO. REG. NO. R200007899C Section I: Financial Results PRIVATE & CONFIDENTIAL. NOT FOR EXTERNAL CIRCULATION. CO. REG. NO. R200007899C 5
Slide 6: Key highlights (4Q2015 & FY2015)
Key highlights (4Q2015 & FY2015) FY2014¹ FY2015 YoY (%) 4Q2014¹ 4Q2015 YoY (%) Net revenue 36.68 41.53 +13.2 9.36 10.16 +8.5 (S$ million) Net profit 10.51 12.10 +15.1² 2.90 2.86 -1.2² (S$ million) EPS (cents) 5.06 4.65 -8.1 1.31 1.10 -16.0 Notes: 1. Excluding IPO expenses of S$1.95 million in Decemb
Slide 7: Financial Results (FY2015 vs FY2014)
Financial Results (FY2015 vs FY2014) FY2014¹ FY2015 YoY change (%) S$ (Million) Revenue 78.35 85.34 +8.9 Net revenue 36.68 41.53 +13.2 Other income 0.24 1.53 +546.2 Expenses 26.14 31.08 +18.9 Net finance income 0.10 0.80 +732.3 Share of result of associate, net of tax -0.01 -0.02 +71.4 Profit before
Slide 8: Financial Results (4Q2015 vs 4Q2014)
Financial Results (4Q2015 vs 4Q2014) 4Q2014¹ 4Q2015 YoY change (%) S$ (Million) Revenue 19.76 20.74 +4.9 Net revenue 9.36 10.16 +8.5 Other income 0.03 0.42 +1444.4 Expenses 6.48 8.01 +23.5 Net finance income 0.02 0.26 +1063.6 Share of result of associate, -0.01 -0.01 -35.7 net of tax Profit before t
Slide 9: Key highlights (FY2011-2015)
Key highlights (FY2011-2015) FY2011 FY2012 FY2013¹ FY2014² FY2015 Net revenue (S$ million) 25.20 26.29 31.58 36.68 41.53 Net revenue (YoY change) +15.7% +4.4% +20.1% +16.1% +13.2% Ased Net profit (S$ million) 2.77 3.74 7.86 10.51 12.10 Net profit (YoY change) N.M. +35.0% +110.2% +33.7% +15.1%³ PBT m
Slide 10: Results Overview (FY2011-2015)
Results Overview (FY2011-2015) FY2011 FY2012 FY2013¹ FY2014² FY2015 S$ (Million) Revenue 61.12 56.41 69.47 78.35 85.34 Net revenue 25.20 26.29 31.58 36.68 41.53 Other income 0.06 0.08 0.16 0.24 1.53 Expenses 22.81 22.40 23.58 26.14 31.08 Net finance income -0.08 -0.03 0.03 0.10 0.80 Share of result
Slide 11: PBT margin (based on net revenue)
PBT margin (based on net revenue) 35% 30.7% 29.6%² 30% 25.9%¹ 25% 20% 15.0% 15% 10% 9.4% 5% 0% FY2011 FY2012 FY2013 FY2014 FY2015 Notes: 1. Excluding one-off gain of S$0.62 million on distribution to owners of the Company in October 2013 2. Excluding IPO expenses of S$1.95 million in December 2014 P
Slide 12: Financial Ratios
Financial Ratios S$ (Million) FY2011 FY2012 FY2013 FY2014 FY2015 Operating 1.40 2.33 7.13 10.18 14.18 Cashflows Capital 1.71 0.21 1.57 2.34 5.45 Expenditure 31 Dec 31 Dec 31 Dec 31 Dec 31 Dec S$ (Million) 2011 2012 2013 2014 2015 Net Current 21.92 20.95 20.70 63.16 68.32 Assets 31 Dec 31 Dec 31 Dec
Slide 13: Cash position
Cash position As at 31 Dec 2014 As at 31 Dec 2015 (S$ million) (S$ million) Cash and cash equivalents 35.39 29.52 Other investments¹ 22.02 31.96 Total cash position 57.41² 61.48 Notes: 1. Other investments represent investments in available-for-sale financial assets. 2. The Group's cash position as
Slide 14: Number of issued shares
Number of issued shares As at 31 Dec 2014 As at 31 Dec 2015 Total number of issued shares 256,225,334¹ 260,977,301 Notes: 1. The Group's total number of issued shares as at 31 December 2014 do not include the issuance of 3,280,000 new shares on 6 January 2015, following the exercise of over- allotme
Slide 15: Our Consolidated Financial Position as at 31 Dec 2015
Our Consolidated Financial Position as at 31 Dec 2015 S$’000 NON-CURRENT ASSETS Fixed Assets 2,438 Intangible Assets 5,163 Associate 362 Others 514 8,477 CURRENT ASSETS Trade & other receivables 19,877 Prepayments & others 1,442 Other Investments 31,964 Cash & cash equivalents 29,520 82,803 TOTAL AS
Slide 16: Our Consolidated Financial Position as at 31 Dec 2015 – cont’d
Our Consolidated Financial Position as at 31 Dec 2015 – cont’d S$’000 CURRENT LIABILITIES Trade & other payables 13,836 Current tax payable 646 14,482 NON-CURRENT LIABILITIES Deferred Tax 239 Other Payables - 239 EQUITY Share Capital 62,546 Accumulated profits 17,481 Other reserves (3,468) EQUITY AT
Slide 17: Proposed Final Dividend for FY2015
Proposed Final Dividend for FY2015 • As previously indicated by the Group’s Directors, the dividend payout for FY2015 is to distribute dividends of 60% of net profit (excluding exceptional items) • In 2015, the Group’s dividend payout was based on 60% of the Group’s net profit. The Group’s Directors
Slide 18: Dividend Guidance for FY2016
Dividend Guidance for FY2016 • For FY2016, our Directors intend to recommend and distribute dividends of 60% of our Group’s net profit (excluding our China operation, and exceptional items) • The Dividend Guidance for FY2016 takes into account the consideration that the Group has a strong balance sh
Slide 19: Section II: Performance Trends
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Slide 20: Group AUA
Group AUA S$ million AUA (as at 31 Dec 2015): S$5.64 billion $7,000 $6,000 $5,000 $4,000 $3,000 $2,000 B2B: 74.7% and B2C: 25.3% $1,000 $- Dec-00 Jun-01 Dec-01 Jun-02 Dec-02 Jun-03 Dec-03 Jun-04 Dec-04 Jun-05 Dec-05 Jun-06 Dec-06 Jun-07 Dec-07 Jun-08 Dec-08 Jun-09 Dec-09 Jun-10 Dec-10 Jun-11 Dec-11
Slide 21: Group AUA Trends
Group AUA Trends Singapore: 72.0% Hong Kong: 23.0% Malaysia: 5.0% • AUA grew 5.2% YoY to S$5.64 billion (as at 31 December 2015) • AUA grew at a 10-year CAGR of 17.9% (as at 31 December 2015) • AUA from the B2B and B2C segments grew 5.2% and 5.3% YoY respectively (as at 31 December 2015) PRIVATE & C
Slide 22: Net sales
Net sales S$ million S$ million Net sales Subscription ex-switching $600 $2,000 $501 $1,670 $500 $1,600 $1,547 $458 $1,365 $396 $400 $1,200 $947 $940 $300 $800 $193 $200 $400 $100 $55 $- $- 2011 2012 2013 2014 2015 2011 2012 2013 2014 2015 PRIVATE & CONFIDENTIAL. NOT FOR EXTERNAL CIRCULATION. CO. RE
Slide 23: Net revenue breakdown between recurring and non-recurring sources
Net revenue breakdown between recurring and non-recurring sources S$ million Average contribution from recurring net revenue as opposed to non-recurring net revenue in the period from FY2011 to 2015 was 82.1% 45 41.5 40 35 30 25 20 15 10 6.9 5 4.3 0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Slide 24: Net revenue as a ratio of average AUA
Net revenue as a ratio of average AUA 0.800% 0.700% 0.144% 0.122% 0.101% 0.134% 0.600% 0.125% 0.500% 0.400% 0.300% 0.574% 0.591% 0.615% 0.571% 0.526% 0.200% 0.100% 0.000% FY2011 FY2012 FY2013 FY2014 FY2015 Recurring net revenue / AUA Non-recurring net revenue / AUA PRIVATE & CONFIDENTIAL. NOT FOR EX
Slide 25: Net revenue and operating expenses as a ratio of average AUA
Net revenue and operating expenses as a ratio of average AUA 0.800% 0.735% 0.738% 0.707% 0.700% 0.650% 0.672% 0.615% 0.589% 0.591% 0.600% 0.571% 0.572% 0.574% 0.552% 0.526% 0.528% 0.524% 0.500% 0.400% 0.300% 0.200% 0.100% 0.000% FY2011 FY2012 FY2013 FY2014 FY2015 Net revenue / AUA Recurring net reve
Slide 26: Recurring and Non-Recurring Net Revenue
Recurring and Non-Recurring Net Revenue S$ (Million) FY2011 FY2012 FY2013 FY2014 FY2015 Recurring net revenue 20.38 22.34 25.62 29.48 34.65 Non-recurring net revenue 4.82 3.95 5.96 7.20 6.88 Total net revenue 25.20 26.29 31.58 36.68 41.53 YoY Change (%) FY2011 FY2012 FY2013 FY2014 FY2015 Recurring n
Slide 27: Net Revenue – Geographical Segment
Net Revenue – Geographical Segment S$ (Million) FY2011 FY2012 FY2013 FY2014 FY2015 Singapore 21.15 21.33 24.10 25.72 30.04 Hong Kong 3.65 4.39 6.50 9.48 9.55 Malaysia 0.40 0.57 0.98 1.48 1.94 Group 25.20 26.29 31.58 36.68 41.53 YoY Change (%) FY2011 FY2012 FY2013 FY2014 FY2015 Singapore +13.0 +0.9 +
Slide 28: Net Revenue – B2B Business Segment
Net Revenue – B2B Business Segment B2B Net Revenue FY2011 FY2012 FY2013 FY2014 FY2015 (S$ Million) Recurring net revenue 14.10 16.03 18.16 21.09 24.50 Non-recurring net revenue 2.68 2.11 3.06 4.46 4.09 Total B2B net revenue 16.78 18.14 21.22 25.55 28.59 YoY Change (%) FY2011 FY2012 FY2013 FY2014 FY2
Slide 29: Net Revenue – B2C Business Segment
Net Revenue – B2C Business Segment B2C Net Revenue FY2011 FY2012 FY2013 FY2014 FY2015 (S$ Million) Recurring net revenue 6.28 6.31 7.46 8.39 10.15 Non-recurring net revenue 2.14 1.84 2.90 2.74 2.79 Total B2C net revenue 8.42 8.15 10.36 11.13 12.94 YoY Change (%) FY2011 FY2012 FY2013 FY2014 FY2015 Re
Slide 30: Profit/Loss – Geographical Segment
Profit/Loss – Geographical Segment Profit/Loss After Tax (S$ Million) FY2011 FY2012 FY2013 FY2014 FY2015 Singapore 5.53 5.64 7.81¹ 9.00² 11.21 Hong Kong (1.97) (1.19) 0.40 2.10 1.65 Malaysia (1.44) (1.19) (0.59) (0.09) 0.24 China - - - (0.52) (0.98) Other³ - - - (0.01) (0.02) Group 2.12 3.26 7.62 10
Slide 31: 4Q2015 and FY2015 results summary
4Q2015 and FY2015 results summary • Our AUA grew 5.2% YoY and 4.2% QoQ to S$5.64 billion (as at 31 December 2015) • Our Group’s net sales were positive at S$396 million in FY2015 and S$111 million in 4Q2015, but volatile market conditions led to a 21.0% YoY decline in net sales in FY2015 • Singapore
Slide 32: 4Q2015 and FY2015 results summary
4Q2015 and FY2015 results summary • Hong Kong’s profit after tax declined 33.8% YoY to S$0.34 million in 4Q2015 and 21.5% YoY to S$1.65 million in FY2015 • Revenue in Hong Kong declined 12.9% YoY in 4Q2015 and 6.8% YoY in FY2015 due to volatile equity market sentiment, and a slowdown of subscription
Slide 33: Outlook
Outlook Enhancing Platform Capabilities • In 2015, in addition to continuing efforts to grow the Group’s businesses in the different countries organically, the Group has put a lot of efforts into expanding the range of products and services • New products and services launched in 2015 included: – Di
Slide 34: Outlook
Outlook Clear Medium- To Long-Term Growth Strategies, Short-Term Financial Market Volatility • The enhanced range of investment products and services will empower each FA company using our B2B platform to have the capabilities of a ‘mini private bank’ and be able to seamlessly advise investors acros
Slide 35: Outlook
Outlook Strategies for iFAST China Business • The Group obtained the Funds Distributor Qualification in China in October 2015. This will allow the Group’s China operation (iFAST China) to run an investment products distribution platform in China • The Group intends to have a soft launch of its China
Slide 36: Outlook
Outlook Strategies for iFAST China Business • iFAST China is adopting a scalable strategy in growing its clients, AUA and revenue • The Group expects iFAST China to start to contribute to the Group’s revenue in FY2016, but expects the initial start-up losses to be higher in FY2016 than in FY2015 (S$
Slide 37: Outlook
Outlook Dividend Guidance for FY2016 • While the Group expects its China operation to start contributing to the Group’s revenue in FY2016, the Group also expects the initial start-up losses to be higher in FY2016 than in FY2015 • The Directors are of the view that the expected losses from China do n
Slide 38: 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 38
Slide 39: Business Overview
Business Overview • We are an Internet-based investment products distribution platform with assets under administration (AUA) of S$5.64 billion as at 31 December 2015 (stock code: AIY) • Two main business divisions: – Business-to-Consumer (B2C) website, Fundsupermart.com, targeted at DIY investors (
Slide 40: Business Model
Business Model PRIVATE & CONFIDENTIAL. NOT FOR EXTERNAL CIRCULATION. CO. REG. NO. R200007899C 40
Slide 41: Our Milestones
Our Milestones 2002 2008 2014 2016 Launch of • Launch of iFAST Platform • Incorporation of iFAST Completion of acquisition iFAST Platform Services Services (B2B) in Hong Kong Platform Services of Winfield Securities (B2B) in Singapore • Launch of Fundsupermart.com (Shenzhen) Qianhai in China Limited
Slide 42: Our Value Proposition
Our Value Proposition B2B Financial Advisers • One platform, multiple investment products • Adoption of recurring revenue business model Suppliers based on Assets Under Administration (“AUA”) • Platform performs efficient collection of fees • One platform, multiple B2B and • Backroom functions manag
Slide 43: Fees Illustration
Fees Illustration B2B Financial Advisers • Upfront Adviser- Commissions assisted Suppliers • Wrap Fees Investors • Platform Fees • Trailer Fees • Upfront B2C Commissions Investors • Platform Fees PRIVATE & CONFIDENTIAL. NOT FOR EXTERNAL CIRCULATION. CO. REG. NO. R200007899C 43
Slide 44: Thank you.
Thank you. For more information, please visit www.ifastcorp.com PRIVATE & CONFIDENTIAL. NOT FOR EXTERNAL CIRCULATION. CO. REG. NO. R200007899C 44