Slide 1: 3Q2021 & 9M2021 Results Presentation
iFAST Corporation Ltd. 3Q2021 & 9M2021 Results Presentation 23 OCTOBER 2021
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 3Q2021 (Jul–Sep 2021) & 9M2021 (Jan-Sep 2021) Results Pg. 8 Section I Financial Indicators Financial Results Interim Dividends Get Bigger and Better Pg. 22 Section II Accelerate Hong Kong Growth iFAST’s Five-Year Plan More Licences Truly Global Business Mod
Slide 4: Key Summary
Key Summary • The Group’s assets under administration (“AUA”) continued to register new record levels, reaching S$18.38 billion as at 30 September 2021, a growth of 46.1% YoY and 27.2% YTD. The AUA of unit trusts, its key investment asset class, grew to a record S$13.46 billion, a growth of 39.5% Yo
Slide 5: Key Summary
Key Summary • iFAST Corp believes that the robust growth seen by the Group in recent times has resulted from its past investments in building up a strong integrated digital wealth management platform. The Group will continue to work hard on various initiatives in all existing markets that the Group
Slide 6: Group AUA grew 27.2% YTD and 46.1% YoY to S$18.38 billion
Group AUA grew 27.2% YTD and 46.1% YoY to S$18.38 billion as at 30 September 2021 S$ million AUA (as at 30 Sep 2021): S$18.38 billion1 $18,000.00 $16,000.00 $14,000.00 $12,000.00 $10,000.00 $8,000.00 $6,000.00 $4,000.00 $2,000.00 $- Sep-10 Sep-11 Sep-12 Sep-00 Sep-01 Sep-02 Sep-03 Sep-04 Sep-05 Sep-
Slide 7: Net Inflows & Gross Unit Trusts (UT) subscription
Net Inflows & Gross Unit Trusts (UT) subscription S$ million Net Inflows S$ million Gross UT Subscriptions $3,500 $6,000 $5,647 $5,543 $3,160 $2,991 $3,000 $5,000 $2,500 $4,081 $2,313 $4,000 $2,000 $3,053 $2,908 $2,870 $3,000 $1,500 $2,000 $942 $976 $1,000 $786 $1,000 $500 $- $- 2017 2018 2019 2020
Slide 8: Financial Results
SECTION I Financial Results 8
Slide 9: Financial Results for Group (3Q2021 vs 3Q2020)
Financial Results for Group (3Q2021 vs 3Q2020) S$ (Million) 3Q2020 3Q2021 YoY change (%) Revenue 45.00 55.53 +23.4 Net revenue 22.87 30.31 +32.6 Other income / (loss) 1.27 -0.57 NM Operating Expenses 16.70 20.65 +23.7 Net finance (cost) / income -0.06 0.03 NM Share of results of associates, net of t
Slide 10: Financial Results for Group (9M2021 vs 9M2020)
Financial Results for Group (9M2021 vs 9M2020) S$ (Million) 9M2020 9M2021 YoY change (%) Revenue 122.03 161.65 +32.5 Net revenue 61.53 84.99 +38.1 Other income 3.65 0.88 -76.0 Operating Expenses 47.68 58.03 +21.7 Net finance income 0.08 0.08 -4.8 Share of results of associates, net of tax -0.14 -0.1
Slide 11: Results Overview for Group
Results Overview for Group S$ (Million) FY20171 FY2018 FY2019 FY2020 9M2021 Revenue 101.17 121.24 125.41 169.93 161.65 Net revenue 49.45 59.62 65.20 85.86 84.99 Other income 1.08 1.16 2.04 5.21 0.88 Operating expenses 42.19 49.78 56.06 65.29 58.03 Net finance income/(costs) 0.74 0.83 -0.06 0.03 0.08
Slide 12: PBT Margin for Group (Based on Net Revenue)
PBT Margin for Group (Based on Net Revenue) 35.0% 32.7% 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 9M2021 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% 26.9% 25.0% 21.8% 20.0% 15.0% 13.1% 10.9% 9.7% 10.0% 5.0% 0.0% 2017 2018 2019 2020 9M2021 13
Slide 14: Financial Indicators
Financial Indicators S$ (Million) FY2017 FY2018 FY2019 FY2020 9M2021 EBITA 12.96 16.44 17.49 32.98 34.45 Net Cash Position1 55.91 48.06 40.15 53.28 54.44 Operating Cash Flows 13.22 17.62 19.38 41.56 30.93 Capital Expenditure2 7.47 10.73 11.90 12.63 13.36 Net Current Assets 60.18 56.62 49.86 58.35 70
Slide 15: Net Cash Position
Net Cash Position As at 30 Sep 2021 (S$ million) Cash and cash equivalents 36.00 Other investments¹ 18.44 Total cash and other investments 54.44 Less: Bank loans - Net Cash Position 54.44 (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 45.00 41.56 40.00 35.00 30.93 30.00 25.00 19.38 20.00 17.62 15.00 13.22 10.00 5.00 0.00 2017 2018 2019 2020 9M2021 16
Slide 17: Capital Expenditure
Capital Expenditure S$ million 13.36 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 9M2021 17
Slide 18: Number of issued shares
Number of issued shares As at 31 Dec 2020 As at 30 Sep 2021 Total number of issued shares (excluding treasury shares and 272,407,635 276,915,913 subsidiary holdings) 18
Slide 19: Our Consolidated Financial Position
Our Consolidated Financial Position As at 31 Dec 20 As at 30 Sep 21 S$’000 S$’000 ASSETS Plant and Equipment 4,283 6,114 Right-of-use Assets 18,538 16,190 Intangible Assets and Goodwill 25,500 29,093 Associates 5,982 6,315 Other Investments 3,944 3,999 Deferred Tax Assets 1,099 1,857 Prepayments & O
Slide 20: Our Consolidated Financial Position
Our Consolidated Financial Position As at 31 Dec 20 As at 30 Sep 21 S$’000 S$’000 EQUITY Share Capital 66,976 67,563 Other Reserves 37,133 57,705 EQUITY ATTRIBUTABLE TO OWNERS OF THE COMPANY 104,109 125,268 Non-Controlling Interests (709) (861) TOTAL EQUITY 103,400 124,407 LIABILITIES Deferred Tax L
Slide 21: Third Interim Dividend for FY2021
Third Interim Dividend for FY2021 Third Interim Dividend for FY2021 - Schedule Dividend per share 1.30 cents per ordinary share Ex-dividend date 1 November 2021 Record date and time 2 November 2021 (5.00 pm) Payment date 16 November 2021 • For the interim dividend for 3Q2021, the Directors declared
Slide 22: iFAST's Five-Year Plan
Section II iFAST’s Five-Year Plan 22
Slide 23: iFAST's Five-Year Plan
iFAST’s Five-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: Five-Year Plan: Get Bigger and Better
Five-Year Plan: Get Bigger and Better • The Group’s focus all these years on ensuring that it continue 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 platforms
Slide 25: Five-Year Plan: Accelerate Hong Kong Growth
Five-Year Plan: Accelerate Hong Kong Growth • The Group expects to substantially accelerate the growth of its overall Hong Kong business in the next five years, particularly in 2024 and 2025. • The Group expects its existing Fintech wealth management platform business to continue to grow, while its
Slide 26: Guidance on Hong Kong Targets
Guidance on Hong Kong Targets • Given the Group’s expectations that the growth rates of its overall Hong Kong business will accelerate in the next five years, the Group has decided to share its targeted revenue and PBT margins for 2024 and 2025. • For the purpose of comparison, the Group’s overall H
Slide 27: Guidance on Hong Kong Targets
Guidance on Hong Kong Targets • Gross Revenue Targets Target to achieve Gross Revenue of >HKD1 billion in 2024 Target to achieve Gross Revenue of >HKD1.5 billion in 2025 • Net Revenue Targets Target to achieve Net Revenue of >HKD800 million in 2024 Target to achieve Net Revenue of >HKD1.2 bi
Slide 28: Five-Year Plan: More Licences
Five-Year Plan: More Licences • 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 beyond. • Successful Fintech b
Slide 29: Five-Year Plan: More Licences
Five-Year Plan: More Licences • 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 banking. This is illustrated by
Slide 30: Five-Year Plan: Truly Global Business Model
Five-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 31: Performance Trend
SECTION III \ Performance Trend 31
Slide 32: AUA Breakdown: Markets & Products
AUA Breakdown: Markets & Products (as at 30 September 2021) AUA Breakdown By Markets AUA Breakdown By Products 4.0% 5.4% 9.2% 16.8% 16.0% 4.7% 70.8% 73.1% Singapore Hong Kong Unit Trusts Bonds Malaysia Others (China & India) Stocks & ETFs Cash Account 32
Slide 33: 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 9M2021 was 69.2% 100.0 90.0 80.0 25.5 27.2 70.0 60.0 12.3 11.3 50.0 8.5 40.0 6.9 6.0 7.2 30.0 6.0 60.4 57.8
Slide 34: 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% 0.686% 0.126% 0.139% 0.138% 0.225% 0.600% 0.625% 0.220% 0.614% 0.629% 0.500% 0.576% 0.400% 0.468% 0.300% 0.606% 0.596% 0.594% 0.533% 0.466% 0.200% 0.218% 0.181% 0.100% 0.106% 0.12
Slide 35: Recurring and Non-recurring Net Revenue
Recurring and Non-recurring Net Revenue S$ (Million) FY2017 FY2018 FY2019 FY2020 9M2021 Recurring net revenue 40.95 48.32 52.94 60.39 57.78 Non-recurring net revenue 8.50 11.30 12.26 25.47 27.21 Total net revenue 49.45 59.62 65.20 85.86 84.99 YoY Change (%) FY2017 FY2018 FY2019 FY2020 9M2021 Recurri
Slide 36: Net Revenue – Geographical Segment
Net Revenue – Geographical Segment S$ (Million) FY2017 FY2018 FY2019 FY2020 9M2021 Singapore 34.77 39.30 41.95 56.33 54.90 Hong Kong 10.78 14.26 16.71 19.22 18.41 Malaysia 3.47 5.32 5.97 8.55 9.80 China 0.43 0.75 0.57 1.76 1.88 Group 49.45 59.62 65.20 85.86 84.99 YoY Change (%) FY2017 FY2018 FY2019
Slide 37: Net Revenue – B2B Business Segment
Net Revenue – B2B Business Segment B2B Net Revenue FY2017 FY2018 FY2019 FY2020 9M2021 (S$ Million) Recurring net revenue 28.85 33.88 37.12 42.34 40.60 Non-recurring net revenue 5.15 7.22 7.19 10.88 12.44 Total B2B net revenue 34.00 41.10 44.31 53.22 53.04 YoY Change (%) FY2017 FY2018 FY2019 FY2020 9
Slide 38: Net Revenue – B2C Business Segment
Net Revenue – B2C Business Segment B2C Net Revenue FY2017 FY2018 FY2019 FY2020 9M2021 (S$ Million) Recurring net revenue 12.10 14.44 15.81 18.04 17.18 Non-recurring net revenue 3.35 4.08 5.08 14.60 14.77 Total B2C net revenue 15.45 18.52 20.89 32.64 31.95 YoY Change (%) FY2017 FY2018 FY2019 FY2020 9
Slide 39: Profit/Loss – Geographical Segment
Profit/Loss – Geographical Segment Profit/Loss YoY Change YoY Change (S$ Million) 3Q2020 3Q2021 (%) 9M2020 9M2021 (%) Singapore 5.86 6.08 +3.8 14.41 21.81 +51.3 Hong Kong 1.62 3.14 +93.5 4.06 6.35 +56.5 Malaysia 1.23 1.37 +11.6 2.81 4.11 +46.1 China (1.28) (1.40) +9.2 (3.57) (4.20) +17.4 Other1 (0.0
Slide 40: Profit/Loss – Geographical Segment
Profit/Loss – Geographical Segment Profit/Loss (S$ Million) FY20173 FY2018 FY2019 FY2020 9M2021 Singapore 10.62 11.86 9.96 21.32 21.81 Hong Kong 1.77 3.42 4.42 5.79 6.35 Malaysia 1.07 1.37 1.76 3.75 4.11 China (4.17) (4.60) (4.82) (4.88) (4.20) Other1 (0.33) 0.52 (0.05) (0.41) (0.13) Profit before t
Slide 41: Progress of Individual Markets: Singapore
Progress of Individual Markets SINGAPORE • Net revenue for the Singapore operation increased by 21.2% YoY to S$18.18 million in 3Q2021 and 36.9% YoY to S$54.90 million in 9M2021. • The AUA for the Singapore operation grew 53.5% YoY and 6.8% QoQ to $13.01 billion as at 30 September 2021. This continu
Slide 42: Progress of Individual Markets: Singapore
Progress of Individual Markets SINGAPORE • FSMOne.com launched the China A-shares trading service, via the Northbound Trading link in early October 2021. This enables investors to invest into a selection of stocks listed in the Shanghai Stock Exchange and Shenzhen Stock Exchange via the HKEX, at com
Slide 43: Progress of Individual Markets: Hong Kong
Progress of Individual Markets HONG KONG • Net revenue for the Hong Kong operation increased by 64.5% YoY to S$8.04 million in 3Q2021 and 30.9% YoY to S$18.41 million in 9M2021. • The AUA of the Hong Kong operation fell 4.3% QoQ but grew 16.9% YoY to S$2.94 billion as at 30 September 2021. The QoQ d
Slide 44: Progress of Individual Markets: Hong Kong
Progress of Individual Markets HONG KONG • For the B2C division, stocks and ETFs turnover grew 54% QoQ in 3Q2021, while bond turnover declined slightly by 4% QoQ after achieving a record high in 2Q2021. Although unit trust sales (ex-switching) declined 10% QoQ in 3Q2021, it recorded an increase of 1
Slide 45: Progress of Individual Markets: Malaysia
Progress of Individual Markets MALAYSIA • Net revenue for the Malaysia operation increased by 42.9% YoY to S$3.43 million in 3Q2021 and 56.6% YoY to S$9.80 million in 9M2021. • The AUA of the Malaysia operation grew 3.8% QoQ and 45.6% YoY to a record high of S$1.70 billion as at 30 September 2021 de
Slide 46: Progress of Individual Markets: Malaysia
Progress of Individual Markets MALAYSIA • The B2B division launched a revamped mobile app for both the B2B and iGM clients in August 2021. The newly revamped mobile app which features a more user friendly interface with better user experience has garnered good feedback from its users. • The B2B divi
Slide 47: Progress of Individual Markets: China
Progress of Individual Markets CHINA • Net revenue for the China operation grew 13.9% YoY to S$0.66 million in 3Q2021 and 69.5% YoY to S$1.88 million in 9M2021. • On a QoQ basis, net revenue rose 38% QoQ with growth seen in both the recurring and non- recurring net revenue. • Despite the uncertain m
Slide 48: Progress of Individual Markets: China
Progress of Individual Markets CHINA • With the increasing volatility in the market, investment sentiments are deeply split. Despite so, the China operation remains positive on the China equity markets on account of its strong fundamentals and policy sensitivity. • On the whole, the China operation
Slide 49: Progress of Individual Markets: India
Progress of Individual Markets INDIA • As at 30 September 2021, iFAST Corp holds an effective 39.48% 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 incr
Slide 50: Appendices
SECTION IV Appendices 50
Slide 51: Business Overview
Business Overview • iFAST Corporation Ltd. is a wealth management fintech platform with assets under administration (AUA) of S$18.38 billion as at 30 September 2021 (stock code: AIY). • Main business divisions: o Business-to-Consumer (B2C): FSMOne.com (formerly “Fundsupermart”) a multi-product onlin
Slide 52: Milestones
Milestones Launch of iFAST Platform Acquired a stake in the holding Services (B2B) in Hong Kong 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 P
Slide 53: 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 54: iFAST Fintech Ecosystem
iFAST Fintech Ecosystem (as at 30 Sep 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 650,000 customer accounts Over 540 companies, in 5 Fin
Slide 55: The iFAST Fintech Ecosystem
The iFAST Fintech Ecosystem • Products and services: ─ Unit trusts (over 9,400 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 540 financial in
Slide 56: 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 57: 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 58: Licences Held and Products and Services Available
Licences Held and Products and Services Available (as at 30 September 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 59: 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 60: 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 60
Slide 61: 9M2021: Activities & Achievements
9M2021: Activities & Achievements (L-R): iFAST Corp received the "Best Performing Stock", "Best Weighted Return on Equity", and "Overall Sector Winner" awards in the banking and investment services sector at the Billion Dollar Club 2021 organised by The Edge Singapore in September; iFAST Corp clinch
Slide 62: 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.