[iFAST] iFAST Corp: Weak start to the year, but Four Year Plan executions continue

FOR IMMEDIATE RELEASE

iFAST Corp: Weak start to the year, but Four-Year Plan executions continue

•  Global stock market conditions went from being very positive in 1Q2021 to very poor in 1Q2022, resulting in a weak start to the year 2022 for the Group. In 1Q2022, net revenue declined 1.2% YoY to S$28.15 million as an 18.7% YoY decline in non-recurring net revenue offset an 8.8% YoY increase in recurring net revenue.

•  Operating expenses increased 10.4% YoY to S$21.12 million in 1Q2022 as the Group continues to invest and prepare for its next phase of growth under its Four-Year Plan. As a result, net profit declined 34.9% YoY to S$5.74 million in 1Q2022.

•  The Group's AUA declined 2.0% QoQ but grew 15.6% YoY to S$18.63 billion as at 31 March 2022.

•  While it is clear that the wealth management platform business that the Group is building has very strong long-term growth drivers, in the short term, financial market conditions can cause interruptions in its growth path, and 2022 looks likely to be one of those years.

•  Overall, the Group expects to see a moderate growth in net revenue in 2022 as a whole, but also expects to see some declines in profitability.

•  With greater clarity on information relating to the Hong Kong ePension project, the Group has updated the targeted revenue and PBT for its overall Hong Kong business in 2023, 2024 and 2025.

•  For the first interim dividend for 1Q2022, the Directors declared a dividend of 1.00 cents per ordinary share (first interim dividend for 1Q2021: 1.00 cents per ordinary share).

SINGAPORE (23 April 2022) - iFAST Corporation Ltd. ("iFAST Corp" and together with its subsidiaries, the "Group") reported its financial results for the first quarter of 2022 (1Q2022).

Global stock market conditions went from being very positive in 1Q2021 to very poor in 1Q2022, resulting in a weak start to the year 2022 for the Group. In 1Q2022, net revenue declined 1.2% YoY to S$28.15 million as an 18.7% YoY decline in non-recurring net revenue offset an 8.8% YoY increase in recurring net revenue.

Operating expenses increased 10.4% YoY to S$21.12 million in 1Q2022 as the Group continues to invest and prepare for its next phase of growth under its Four-Year Plan. As a result, net profit declined 34.9% YoY to S$5.74 million in 1Q2022.

The Group's assets under administration ("AUA") declined 2.0% QoQ to S$18.63 billion as at 31 March 2022, as declines in stocks and bond prices globally offset positive net inflows of S$669 million during the quarter. The Group's AUA grew a healthy 15.6% YoY as at 31 March 2022.

While it is clear that the wealth management platform business that the Group is building has very strong long-term growth drivers, in the short term, financial market conditions can cause interruptions in its growth path, and 2022 looks likely to be one of those years.

The acquisition of the UK-based BFC Bank was completed on 28 March 2022, and the bank has been renamed as iFAST Global Bank. As guided previously, iFAST Global Bank is expected to contribute S$4.0 million in losses to the Group in 2022. The Group is however targeting to achieve profitability for iFAST Global Bank starting 2024.

Overall, the Group expects to see a moderate growth in net revenue in 2022 as a whole, but also expects to see some declines in profitability.

The Group however expects to see a robust ramp up in its profitability between 2023 to 2025 as its new ePension division in Hong Kong becomes a strong contributor.

Beyond 2024, iFAST Global Bank is expected to also become an additional important growth driver for the Group, as the Group makes progress towards having a truly global business model.

Updated Guidance on Hong Kong Targets

With greater clarity on information relating to the Hong Kong ePension project, the Group has updated the targeted revenue and Profit Before Tax (PBT) for its overall Hong Kong business in 2023, 2024 and 2025 as follows:

Gross Revenue Targets

•  Target to achieve Gross Revenue of >HKD400 million in 2023

•  Target to achieve Gross Revenue of >HKD1.1 billion in 2024

•  Target to achieve Gross Revenue of >HKD1.6 billion in 2025

Net Revenue Targets

•  Target to achieve Net Revenue of >HKD280 million in 2023

•  Target to achieve Net Revenue of >HKD900 million in 2024

•  Target to achieve Net Revenue of >HKD1.3 billion in 2025

PBT Targets

•  Target to achieve PBT of >HKD100 million in 2023

•  Target to achieve PBT of >HKD250 million in 2024

•  Target to achieve PBT of >HKD500 million in 2025

First Interim Dividend for 1Q2022

For the first interim dividend for 1Q2022, the Directors declared a dividend of 1.00 cents per ordinary share (first interim dividend for 1Q2021: 1.00 cents per ordinary share).

Table 1: Profit / Loss - Geographical Segment

Profit/Loss (S$ Million)	FY2018	FY2019	FY2020	FY2021	1Q2022
Singapore	11.86	9.96	21.32	28.43	5.37
Hong Kong	3.42	4.42	5.79	8.39	2.19
Malaysia	1.37	1.76	3.75	5.39	1.75
China	(4.60)	(4.82)	(4.88)	(5.82)	(1.65)
Other1	0.52	(0.05)	(0.41)	(0.35)	(0.27)
Profit before tax2	12.57	11.27	25.57	36.04	7.39
Tax expense	(1.66)	(1.76)	(4.42)	(5.41)	(1.65)
Net profit after tax2	10.91	9.52	21.15	30.63	5.74

Notes:

• 1. Representing share of results of associates.

• 2. Attributable to owners of the Company.

Chart 1: Group AUA declined 2.0% QoQ but grew 15.6% YoY to S$18.63 billion as at 31 March 2022

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The Group's AUA as at 31 March 2022 includes its effective 39.6% share of the India Business.

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About iFAST Corp

iFAST Corp (stock code: AIY) is a wealth management Fintech platform, with assets under administration (AUA) of S$18.63 billion as at 31 March 2022.

Incorporated in the year 2000 in Singapore and listed on the SGX-Mainboard in December 2014, the Group is also present in Hong Kong, Malaysia, China, India and UK. Through the years, the Group has built a well-established Fintech ecosystem connecting its product providers and clients.

iFAST Corp holds the requisite licences in the various jurisdictions it operates in to provide a wide range of products and services. As at end December 2021, the Group offers access to over 15,000 investment products including over 10,200 funds from over 290 fund houses, over 1,500 bonds, stocks and ETFs listed on the Singapore, Hong Kong, US, Malaysia, China A stock exchanges, as well as services including online discretionary portfolio management services, research and investment seminars, Fintech solutions, and investment administration and transaction services.

The main business divisions of the Group include the Business-to-Consumer ("B2C") division, the Business-to-Business ("B2B") division, and the Fintech Solutions/Business-to-Business-to-Consumer ("B2B2C") model. The B2C platform, FSMOne.com (formerly known as Fundsupermart.com), is a multi-products transactional platform that caters to investors who prefer to do their own investments online. The B2B platforms cater to the specialised needs of more than 560 financial advisory companies, financial institutions, banks and internet companies with over 11,900 wealth advisers. iFAST Fintech Solutions, the Fintech Solutions/B2B2C model, was launched in recent years to provide innovative and customisable Fintech solutions for the B2B clients and business partners to empower them with their own B2C Fintech capabilities.

The Group's mission statement is, "To help investors around the world invest globally and profitably". In the Investors' Choice Awards 2021 organised by the Securities Investors Association Singapore (SIAS), iFAST Corp was awarded Runner-Up for the "Most Transparent Company Award 2021 - Financials" and "Shareholder Communication Excellence Award 2021 - Mid Cap". In addition, the Group was accorded the Corporate Excellence and Resilience Award for companies with market capitalisation of S$300 million to less than S$1 billion (as at 31 December 2020) at the Singapore Corporate Awards (SCA) (Special Edition) 2020/2021.

For more information, please visitwww.ifastcorp.com

Contacts:

Keith Hong (65) 6439 [e-mail]

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