27 July 2019 2Q2019 & 1H2019 Results Presentation iFAST Corporation Ltd.
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 investors when making an investment decision. iFAST Corp accepts no liability whatsoever with respect to the use of the content in this presentation. This presentation may contain forward-looking statements that involve risks. Future performance, outcomes and results may differ from those expressed in forward-looking statements as a result of risks. Investors should therefore not rely on these forward-looking statements, which are based on the current view of management of future events and market developments. This presentation should not be construed as financial or investment advice and investors should consult their independent advisers. This presentation does not constitute an offer or solicitation of an offer to subscribe for, acquire, purchase, dispose of or sell any units in iFAST Corp. iFAST Corporation Ltd. 2
Table of Contents Key Summary Pg. 4 2Q2019 (Apr – Jun 2019) and 1H2019 (Jan – Jun 2019) Results Pg. 7 Section I Financial Indicators Financial Results Financial Position Second Interim Dividend Section II The iFAST Fintech Ecosystem Pg. 24 Strengthening Our The Revenue Drivers Fintech Ecosystem Pursuing A Digital Bank Licence in Singapore AUA Breakdown: Markets & Products Pg. 32 Net Sales and Subscription excluding Switching Section III Recurring Net Revenue, Non-recurring Net Revenue & Operating Our Performance Expenses Trends Performance by Geographical and Business Segments Progress of Individual Markets Business Overview & Milestones Pg. 52 Section IV Licences Held and Products/Services Available Appendices iFAST Fintech Footprint: Past, Present and Vision 2028 iFAST Fintech Solutions iFAST Corporation Ltd.
Key Summary • Despite volatile financial market conditions and generally jittery investor sentiments in Asia in 1H2019, the Group’s Assets under Administration (AUA) grew 12.2% year - to-date, from S$8.05 billion at the beginning of 2019 to a record high of S$9.04 billion as at 30 June 2019. • Record AUAs have been achieved in the Group’s Singapore, Hong Kong and Malaysia operations, as the Group’s businesses have benefited from its continuous efforts in improving the range and depth of its products and services. • The Group’s China business has however gone through a slow 1H2019, as tough financial market conditions and changing regulatory environment in China have slowed down the pace at which it has been able to introduce its services more broadly. • The Group’s net profit in 2Q2019 improved substantially by 52.9% from a weak 1Q2019, though it was still 16.5% lower than 2Q2018. The year-on-year decline in the 2Q2019 profit despite the record AUA achieved in the quarter was because of the continuing investments that the Group has put into its platform capabilities, particularly in the IT Fintech capabilities. iFAST Corporation Ltd. 4
Key Summary • The Group is of the view that at this stage of the overall development of the Fintech industry, continuing enhancements of its overall capabilities will position the Group for any new and emerging opportunities. • The Monetary Authority of Singapore (MAS) recently announced its plan to issue up to five digital bank licences to non-bank players. iFAST Corp sees this as an exciting development in the industry and will be pursuing the digital bank licence in Singapore. iFAST Corp is in talks with potential partners for the upcoming application. • Overall , the Group believes that growth opportunities in Asia’s wealth management still remain very substantial, and it is well-positioned to benefit from these opportunities in the medium to long term. • The Directors have declared a second interim dividend of 0.75 cents per ordinary share for 2Q2019 (second interim dividend for 2Q2018: 0.75 cents per ordinary share). iFAST Corporation Ltd. 5
Group AUA grew 12.2% YTD to a record high of S$9.04 billion AUA (as at 30 Jun 2019): S$9.04 billion 1 S$ million $10,000 $9,000 $8,000 $7,000 $6,000 $5,000 $4,000 $3,000 $2,000 $1,000 $- Dec-00 Jun-01 Dec-01 Jun-02 Dec-02 Jun-03 Dec-03 Jun-04 Dec-04 Jun-05 Dec-05 Jun-06 Dec-06 Jun-07 Dec-07 Jun-08 Dec-08 Jun-09 Dec-09 Jun-10 Dec-10 Jun-11 Dec-11 Jun-12 Dec-12 Jun-13 Dec-13 Jun-14 Dec-14 Jun-15 Dec-15 Jun-16 Dec-16 Jun-17 Dec-17 Jun-18 Dec-18 Jun-19 B2B B2C Note: 1. The Group’s AUA as at 30 Jun 2019 includes its effective 24.7% share of the India Business iFAST Corporation Ltd. 6
SECTION I Financial Results iFAST Corporation Ltd. 7
Presentation of Group’s Results Presentation of Group’s results (including and excluding China) • In view that our China operation is a relatively new market for the Group, we are presenting our presentation results based on the results of: 1) Group excluding China operation; and 2) Group including China operation • By adopting such a structure in the presentation, investors are able to better assess the performance of the Group in our core operations in Singapore, Hong Kong and Malaysia, with and without the impact from our newer China operation. iFAST Corporation Ltd. 8
Financial Results for Group (excluding China operation) (2Q2019 vs 2Q2018) S$ (Million) 2Q2018 2Q2019 YoY change (%) Revenue 30.65 30.57 -0.3 Net revenue 14.69 16.31 +11.0 Other income 0.28 0.47 +71.6 Expenses 10.61 12.52 +18.0 Net finance income/(cost) 0.23 0.02 -90.9 Share of results of associates, net of tax -0.06 -0.11 79.0 Profit before tax 4.51 4.16 -7.8 Profit after tax 3.99 3.67 -7.9 Net profit attributable to owners of the Company 3.99 3.67 -7.9 EPS (cents) 1.50 1.36 -9.3 iFAST Corporation Ltd. 9
Financial Results for Group (including China operation) (2Q2019 vs 2Q2018) S$ (Million) 2Q2018 2Q2019 YoY change (%) Revenue 30.92 30.64 -0.9 Net revenue 14.96 16.38 +9.5 Other income 0.27 0.47 +71.6 Expenses 12.02 13.89 +15.6 Net finance income/(cost) 0.25 0.02 -89.0 Share of results of associates, net of tax -0.06 -0.11 79.0 Profit before tax 3.40 2.87 -15.5 Profit after tax 2.88 2.39 -17.0 Net profit attributable to owners of the Company 2.94 2.45 -16.5 EPS (cents) 1.10 0.91 -17.3 Dividend Per Share (cents) 0.75 0.75 - iFAST Corporation Ltd. 10
Financial Results for Group (excluding China operation) (1H2019 vs 1H2018) S$ (Million) 1H2018 1H2019 YoY change (%) Revenue 61.44 57.58 -6.3 Net revenue 28.89 31.14 +7.8 Other income 0.56 1.08 +93.9 Expenses 21.09 24.58 +16.6 Net finance income/(cost) 0.46 -0.15 NM Share of results of associates, net of tax -0.09 -0.25 174.4 Profit before tax 8.70 7.21 -17.1 Profit after tax 7.89 6.41 -18.8 Net profit attributable to owners of the Company 7.89 6.41 -18.8 EPS (cents) 2.97 2.39 -19.6 iFAST Corporation Ltd. 11
Financial Results for Group (including China operation) (1H2019 vs 1H2018) S$ (Million) 1H2018 1H2019 YoY change (%) Revenue 61.88 57.83 -6.5 Net revenue 29.33 31.39 +7.0 Other income 0.56 1.08 +93.9 Expenses 23.89 27.36 +14.5 Net finance income/(cost) 0.47 -0.13 NM Share of results of associates, net of tax -0.09 -0.25 174.4 Profit before tax 6.38 4.74 -25.8 Profit after tax 5.58 3.94 -29.3 Net profit attributable to owners of the Company 5.69 4.05 -28.7 EPS (cents) 2.14 1.51 -29.4 Dividend Per Share (cents) 1.50 1.50 - iFAST Corporation Ltd. 12
Results Overview for Group (excluding China operation) FY2017 1 S$ (Million) FY2015 FY2016 FY2018 1H2019 Revenue 85.34 79.89 100.65 120.50 57.58 Net revenue 41.53 40.46 49.01 58.87 31.14 Other income 1.53 1.88 1.10 1.16 1.08 Operating expenses 30.06 33.13 37.31 44.12 24.58 Net finance income/(cost) 0.75 0.82 0.72 0.79 -0.15 Share of results of associates, net of tax -0.02 -0.16 -0.33 0.52 -0.25 Profit before tax 13.73 9.82 13.13 17.17 7.21 Profit after tax 13.08 9.06 11.87 15.51 6.41 Net profit attributable to owners of the 13.08 9.06 11.87 15.51 6.41 Company EPS (cents) 5.03 3.46 4.50 5.83 2.39 Operating Cashflows 15.43 8.79 16.92 21.62 11.58 Note: 1. Restated as a result of adoption of SFRS(I)s with effect from 1 January 2018 iFAST Corporation Ltd. 13
Results Overview for Group (including China operation) FY2017 1 S$ (Million) FY2015 FY2016 FY2018 1H2019 Revenue 85.34 80.60 101.17 121.24 57.83 Net revenue 41.53 40.69 49.45 59.62 31.39 Other income 1.53 1.88 1.08 1.16 1.08 Operating expenses 31.08 37.16 42.19 49.78 27.36 Net finance income/(cost) 0.80 0.84 0.74 0.83 -0.13 Share of results of associates, net of tax -0.02 -0.16 -0.33 0.52 -0.25 Profit before tax 12.75 6.09 8.75 12.35 4.74 Profit after tax 12.10 5.33 7.49 10.69 3.94 Net profit attributable to owners of the 12.10 5.45 7.70 10.91 4.05 Company EPS (cents) 4.65 2.08 2.92 4.10 1.51 Operating Cashflows 14.18 5.63 13.22 17.62 9.08 Dividend per share (cents) 2.79 2.79 3.01 3.15 1.50 Note: 1. Restated as a result of adoption of SFRS(I)s with effect from 1 January 2018 iFAST Corporation Ltd. 14
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