C O R P O R A T E P R E S E N T A T I O N Q4 FY2018

Transcription

1 C O R P O R A T E P R E S E N T A T I O N Q4 FY2018

2 GROUP OVERVIEW BANKING AGENDA INSURTECH AND RETAIL KEY FINANCIALS INVESTOR FACTSHEET 2

3 T H I S I S O U R F O U N D A T I O N COMPUTING PRINCIPLES GROUNDED ON MATHEMATICAL MODELS OUR TECHNOLOGIES REFINED, EXPANDED & INNOVATED TO BECOME ASIA PACIFIC S LARGEST DIGITAL ECONOMY SOLUTIONS COMPANY O U R V I S I O N S E T S US A P A R T 3

4 O U R M I S S I O N C U S TO M E R S To be a trusted partner with digital economy propositions and commit to be innovative and responsive To sustain long-term growth with superior return of investment I N V E S T O R S TO BE THE LEADING FINTECH COMPANY HIGHLY VALUED BY CUSTOMERS & PARTNERS P A R T N E R S To work collaboratively together and deliver the best value of our customers To create an innovative & entrepreneurial environment, enriched w i th d iversity & open communication E M P L O Y E E S 4

5 M A R K E T L E A D E R S H I P 100% CUSTOMER TRACK RECORD 100% successful implementation of enterprise core software applications for over 300 customers 30 YEARS OF MAKING DIGITAL TRANSFORMATION WORK REGIONS COVERED Asia Pacific, Central Europe, Middle East & Africa INDUSTRIES TRANSFORMED Banking, Insurance, Retail, Payment and Logistics Ecosystems 5

6 P R O D U C T E V O L U T I O N Our comprehensive solution suite rapidly expands through ecosystem partnership and M&A, while continuously enriched as we invest and work collaboratively with our customers and partners N E W S O L U T I O N S T H R O U G H R & D N E W A C Q U I S I T I O N S & PA R T N E R S H I P S C O L L A B O R AT I O N S W I T H C U S T O M E R S & PA R T N E R S I N D U S T R Y D I G I TA L T R A N S F O R M AT I O N & K N O W L E D G E S H A R I N G GROWTH DRIVERS OUR SOLUTIONS 6

7 BUSINESS E V O L U T I O N T H R O U G H M & A SAACIS* New Product (SIBS) Silverlake Japan New Geography & Product (Card & Credit Processing in Japan) Silverlake Solution New Product (Maintenance & Enhancement) QR Technology New Industry (Retail) Since our listing in Singapore's Stock Exchange (2003), the group has evolved through ongoing Mergers & Acquisitions Symmetric Payments & Integration New Product (Enterprise payment & integration) Merimen Group New Industry (Insurance) Cyber Village New Product (E-commerce marketplace ) Finzsoft Solutions New Geography (Australia, New Zealand) Silverlake Symmetri Retail Banking New Geography (Central Europe, EMEA, South Asia) Silverlake Digitale New Product (Payment solutions) Silverlake Digital Economy New Product (Digital banking) Silverlake OneParadigm New Product (Rules-based applications & tools) *Refers to Silverlake Adaptive Applications & Continuous Improvement Services Ltd 7

8 E C O S Y S T E M PARTNERSHIP Our core capabilities and ecosystem offerings continuously enable and connect our ecosystem partners to effectively run, grow & transform their business BANKING Core System Platform Partner of Choice for Top 3 of the 5 Largest ASEAN Financial Institutions Geographical presence in South East Asia, Australia, China, Europe, Japan, Middle East, New Zealand and South Asia Over 40% of the Top 20 Largest Banks in South-East Asia run on Silverlake Axis core banking solutions 100% Successful Implementation Track Record and over 150 customers using the Group s software solutions and services INSURANCE Primary markets are Malaysia, Singapore and Indonesia with growing markets in Thailand, Philippines, Vietnam & Hong Kong Over 125 insurers, encompassing most major international insurers and many bank-affiliated insurers, covering both conventional and takaful operators Over 5,000 automobile workshops and repair centres Over 25 major automobile brands Over 2,000 insurance intermediaries RETAIL 18 installations across the fastest growing markets in Asia: China, Malaysia, Singapore, Thailand, Vietnam, Cambodia & Indonesia Over 38,000 Suppliers More than 422 Retail Outlets 8

9 E X P A N S I O N OF I N C O M E BASE RM541.8 FY2018 REVENUE RM146.9 FY200 8 REVENUE RM27.8 FY REVENUE Our acquisitions not only added depth and range to the Group s portfolio of software solutions and s e r v i c e s, b u t a l s o broadened the Group s income base with new revenue streams *Revenue in million RM 9

10 Our founder, Mr. Goh Peng Ooi continues to drive the vision with the Board and Management AN EXPERIENCED & HIGH PROFILE LEADERSHIP BOARD O U R P E O P L E BOARD OF DIRECTORS Forward-looking and Notable Board with Over 25 Years of Experience in Various Industries 1,700 EMPLOYEES >25 YEARS IN L E G A L P R A C T I C E S >30 YEARS IN INFORMATION T E C H N O L O G Y >30 YEARS IN FINAN CIAL S E R V I C E S >45 YEARS OF EXTENSIVE S E N I O R MANAGEMENT E X P E R I E N C E CHAIRMAN OF M U L T I P L E F I N A N C I A L INSTITUTES & A D V I S O R Y C O U N C I L S KEY MANAGEMENT TEAM Experienced and Dynamic Management Team with Proven Track Record in Managing High Growth Companies 80% TECHNOLOGY TEAM STAFF CAPABILITY More than 1,700 Competent Employees with Rich and In-depth Expertise from Diverse Backgrounds A LARGE & GROWING TALENT POOL WITH RICH TECHNICAL EXPERTISE 1. Goh Peng Ooi 2. Dr. Kwong Yong Sin 3. Datuk Sulaiman bin Daud 4. Ong Kian Min 5. Datuk Yvonne Chia 6. Professor Tan Sri Dato Dr. Lin See Yan 7. Goh Shiou Ling 8. Lim Kok Min 9. Tan Sri. Dato Dr. Mohd Munir bin Abdul Majid 10

11 S A L S E C U R E S N E W C O R E B A N K I N G C O N T R A C T S April 2018: 12-month implementation of Silverlake Axis Islamic Integrated Banking Solution (SIIBS) for MBSB Bank April 2018: 15-month project with a large banking institution in ASEAN includes SIBS and digital solutions from 3 wholly-owned subsidiaries (CBV, Silverlake Digitale and Silverlake One Paradigm) S A L W I N HONG K O N G D I G I T A L S O L U T I O N S I M P L E M E N T A T I O N S May 2018: 2-year phased rollout for a HK established consumer credit provider s digital payment ecosystem by Digitale and One Paradigm RECENT A C H I E V E M E N T S IN FY2018 F O R T H E G R O U P C Y B E R V I L L A G E W I N S I B M A S I A PACIFIC GEOGRAPHY EXCELLENCE AWARD May 2018: CBV s winning solution enables new customer on-boarding with ekyc biometric facial recognition technology using a mobile first approach S T R E N G T H E N R E T A I L P R E S E N C E & A D V A N C E CLOUD RETAIL O F F E R I N G Oct 2017: QR Provides Retail Automation Solution to AEON Hong Kong Apr 2018: Metro Singapore selects QR Cloud Retail Automation Solution S T R E N G T H E N INSURANCE PRESENCE & E X P A N D S T R U E S I G H T A N A L Y T I C S February 2018: In Hong Kong, Merimen secured new accounts with 2 large local and regional insurers May 2018: New AI-based Analytic product, TrueSight CMF (Claims Management Filter) launched & has acquired 2 new customers for this product, one each in Indonesia and Malaysia 11

12 GROUP OVERVIEW BANKING AGENDA INSURTECH AND RETAIL KEY FINANCIALS INVESTOR FACTSHEET 12

13 M A R K E T L E A D E R S H I P I N B A N K I N G OVER 40% of the Top 20 Largest Banks in South-east Asia Use Our Core Banking Solutions C O R E S Y S T E M S ARE USED AT GLOBAL SITES Core System Platform Partner of Choice for 3 OF THE 5 SUPER REGIONAL Financial Institutions 13 DIGITAL TRANSFORMATION ENABLEMENT Banks achieve greater operational efficiencies, quicker time to roll out new digital innovations EXCELLENT SOFTWARE CAPABILITY Our core solutions handle ~120 million transactions daily* with 100% successful execution *Estimation based on May 2018 peak transaction volume for financial and non- financial transactions LONG-TERM VALUE CREATION Our earliest customers have continued to grow with us over the past 30 years

14 BANKING MARKET TRENDS Banks are more experienced, investing into scalable technologies Innovation budgets are split between both non-it objectives & technology solutions Priority target is on existing operations to holistically transform businesses TECH SPENDING BY ASIAN FINANCIAL INSTITUTIONS IS RISING AGAIN LEANER & TARGETED Annual CAGR Source: IDC Financial Insights,

15 BANKING R E C E N T W I N S Our pursuits since FY2017 has yield positive results, evidenced by successfully securing large new core banking projects in FY2018 as banks focus on enhancing existing operations 12 APR APR 2018 Secured a Core Banking Contract from MBSB for its New Merged Banking Entity Scheduled to be Implemented within 12 Months Contribute Positively to the Results of SAL for Financial Year 2018 and the Following Years Secured a New Core Banking System Contract with a Large Banking Institution in ASEAN Scheduled to be Implemented within 15 Months Contribute Positively to the Results of SAL for Financial Year 2018 and the Following Years 15

16 M O B I L E O N B O A R D I N G W I T H FA C I A L B I O M E T R I C R E C O G N I T I O N A Malaysian-based bank adopted our awardwinning web & mobile technologies & leverage on facial biometric authentication application for ekyc and successfully performed mass onsite account opening and onboarding for foreign workers R E C E N T F I N T E C H P L A T F O R M S U C C E S S E S D I G I TA L B A N K I N G T R A N S F O R M AT I O N A C C E L E R AT I O N W I T H C H A N N E L A P I S A Malaysian-based Super Regional bank transformed its customer s digital banking experience to be centred on connectivity, simplification and personalisation. We reinvent their Channel API Services, enabling the Bank to accelerate launch of new and enhanced digital user experience offerings S M A R T B R A N C H W I T H O M N I - C H A N N E L C A PA B I L I T I E S Using our award-winning digital banking platform with omni-channel capabilities, a Brunei-based Bank (Best Smart Branch) achieved operational excellence through digitised processes (paperless & integrated) and enhanced its customer experience through self-service digital channels BANKING D I G I TA L O M N I - C H A N N E L P L AT F O R M A UAE-based bank adopted our API architecture & now delivers financial services anytime, anywhere, and on any device for their customers 16

17 Customer Value and Revenue Per Customer Relationship License Project Services Maintenance & Enhancement Additional Revenue from Upgrade & Expansion B A N K I N G B U S I N E S S M O D E L For each customer, customer value continues to accumulate and increase over time as we partner and support them in their business operations, expansions and transformations journeys Initial Software License Project Services Maintenance & Enhancement Time 17

18 GROUP OVERVIEW BANKING AGENDA INSURTECH & RETAIL KEY FINANCIALS INVESTOR FACTSHEET 18

19 Thailand (2015) China (2018) Vietnam (2016) Hong Kong (2017) Taiwan (coming soon) Philippines (2016) M A R K E T L E A D E R S H I P I N I N S U R A N C E Malaysia (HQ) (2000) Singapore (2006) U S E D B Y ALL I N S U R E R S A S I A S T O P I N S U R A N C E S O F T W A R E - AS- A - S E R V I C E ( S A A S ) C O M PA N Y Indonesia (2006) F A C I L I TAT E I N S U R A N C E T R A N S A C T I O N S W O R T H 3 B I L L I O N U S $ Y E A R LY 125 Insurers & Takaful Operators INSURANCE ECOSYSTEM PARTNERS 5,000 Repairers & Motor Franchisers 25 Major Automobile Brands 250 Loss Adjusters & Law Firms 2,000 Insurance Intermediaries M O R E T H A N 1 8 Y E A R S O F S E C T O R - S P E C I F I C E X P E R I E N C E S REGIONAL PARTNERS 19

20 MERIMEN C A S E S T U D Y F O R M O T O R C L A I M S Providing a common information exchange & collaborative platform across all parties in claims process BENEFITS ACHIEVED Insured! Garage!! Call Center Parts Supplier! Workflow & notifications! Industry Data Management eclaims Motor! Insurer! Surveyor! Lawyer Document, system within the ecosystem TRACK & IMPROVE PERFORMANCE INCREASE CUSTOMER SATISFACTION CLAIMS COST CONTROL Enable average claims staff to handle 2.5x more claims 78% reduction in processing time, so customers get their claims done faster ~130,000 suspicious cases identified, reducing invalid claims paid Source: Merimen Malaysia Own Damage cases from

21 MERIMEN S O L U T I O N S F O R D A T A A N A L Y T I C S A suite of insurance-domain specific and integrated AI & analytics tools PeerIndex Illustration Of TrueSight s AI-assisted Decisioning A.I. Fraud Detection Regional Dashboards CLAIM NO AI RECOMMENDS 100 Accept claim (but pay 20% less) REASONS WHY Repair cost quoted is inflated higher than average market rates Machineassisted Decisioning Telematics & Video Analytics 101 Reject claim 99% of similar claims are fraudulent 102 Investigate claim 80% of similar claims are invalid And Many More 21

22 SUBSCRIPTION Total Revenue PER TRANSACTION FEE Merimen capitalises on the strong insurance ecosystem and SaaS model that brings r e c u r r i n g i n c o m e a n d growing revenue that is tied to c u s t o m e r s s u c c e s s M E R I M E N B U S I N E S S M O D E L S T R O N G REVENUE T I E D T O G R O W T H Ecosystem Transaction Fees Insurers' Transaction Fees Ecosystem Subscription Insurers' Subscription S T I C K Y I N C O M E I N A N E C O S Y S T E M S T A B L E I N C O M E W I T H L O W C H U R N R A T E Customer Base Insurer Insurer Ecosystem Partners* BENEFITS OF SAAS MODEL & ECOSYSTEM PARTNERSHIP *Ecosystem refers to agent, brokers, surveyors, lawyers, repairers, parts suppliers 22

23 China Cambodia Vietnam Malaysia (HQ) Singapore M A R K E T L E A D E R S H I P I N R E T A I L T E C H OVER 20 YEARS O F E X P E R I E N C E W I T H P R O V E N T R A C K R E C O R D I N R E TA I L E N T E R P R I S E S O L U T I O N S Indonesia C O M P L E T E E N D - TO- E N D R E TA I L A U T O M AT I O N S O L U T I O N F O R GLOBAL RETAILERS QRRA RETAIL ECOSYSTEM 18 Retail Installations Across the Region 38,000 Suppliers Using the System 422 Retail Outlets Covered 23

24 TOTAL SOFTWARE SPENDING IS SHIFTING FROM ON-PREMISE TO CLOUD 100% 80% 60% 40% 20% 0% Q R R A M A R K E T T R E N D I N R E T A I L T E C H ON- PREMISE SINGLE TENANCY CLOUD MULTI TENANCY CLOUD CAGR ON- PREMISE (2.8%) CLOUD 17.6% To enable our retail customers to drive their retail innovation, we have ventured into cloud based digital platform to provide greater control & flexibility Source: IDC, Worldwide Enterprise Application Spend by SaaS and On-Prem,

25 GROUP OVERVIEW BANKING AGENDA INSURTECH & RETAIL KEY FINANCIALS INVESTOR FACTSHEET 25

26 F I N A N C I A L H I G H L I G H T S Q 4 FY R E S U LT S S U M M A R Y (RM Million) Q4 FY2018 Q4 FY2017 % CHANGE (restated) Revenue Gross Profit Other Income (98) Profit Before Tax (23) Income Tax 1.2 (7.1) +117 Net Profit (5) * Note: Restatement of comparatives due to acquisition of Silverlake Investment Ltd (SIL Group) and its subsidiaries completed on 18 April

27 F I N A N C I A L H I G H L I G H T S 6% 5% 1% 84% Q4 FY2018 Group Revenue (RM145.5m) Q4 FY2018 Net Profit (RM36.2 m) Group Revenue in FY2018 (RM541.8m) Group Net Profit in FY2018 (RM134.1m) Group revenue rose 6% to RM145.5m in Q4 FY2018 with increased contributions from maintenance and enhancement services as well as project related revenue segments (except software project services) Q4 FY2018 net profit fell 5% to RM36.2m Other Income declined sharply due to the recognition of RM15.7 million net foreign currency exchange gains in Q4 FY2017 compared to a net loss of RM0.9 million in Q4 FY2018 The Group s joint venture, Silverlake HGH Limited, recorded a net impairment loss of RM12.8 million on goodwill acquired from business combination and this resulted in significant increase in the Group s share of loss of a joint venture Excluding the loss on disposal of GIT shares in Q4 FY2018, adjusted net profit of RM39.5 million in Q4 FY2018 would have been 3% higher than net profit of RM38.3 million in Q4 FY2017 Group revenue and net profit declined 1% and 84% to RM541.8m and RM134.1m respectively in FY2018 Excluding the effects of GIT shares disposal, gain on re-measurement of retained interest in GIT to fair value and net gain on dilution of interest in GIT arising from the issuance of new shares, adjusted net profit of RM140.0 million in FY2018 would have been 10% lower than adjusted RM154.9 million in FY

28 Q 4 F Y R E V E N U E BY B U S I N E S S A C T I V I T I E S Q4 FY2017 Q4 FY % Q4 FY2018 revenue rose with higher contributions from maintenance & enhancement services and all project related revenue segments except software project services 61% % % 9% % 14.7 Sale of Software and Hardware Products Credit and Cards Processing Insurance Processing Software Project Services Software Licensing Maintenance & Enhancement Services 28

29 FULL YEAR FY R E V E N U E BY B U S I N E S S A C T I V I T I E S FY2017 Group revenue declined in FY2018 due to lower revenue from software project services and licensing, moderated by higher contributions by other project related revenue segment and recurring revenue segments FY % % 5% 2% % % 40.0 Sale of Software and Hardware Products Credit and Cards Processing Insurance Processing Software Project Services Software Licensing Maintenance & Enhancement Services 29

30 *Dividend in Singapore cents per share DIVIDEND FIRST INTERIM SECOND INTERIM D I V I D E N D F Y THIRD INTERIM FINAL SPECIAL TOTAL FY FY FY FY FY Taking into account the dividend entitlement for bonus shares (1 for 5) issued on 8 July 2015, dividends were based on a larger share base from Q4 FY2015 onwards. 2. Consists of an interim special dividend of 1.3 cents paid on 28 July 2017 and a final special dividend of 1.0 cents paid on 17 November Final dividend will be payable on 16 November 2018 (subject to shareholders approval at upcoming AGM). 4. Consists of first interim special dividend of 0.5 cent paid on 11 December 2017, second interim special dividend of 0.8 cents paid on 8 March 2018 and final special dividend of 0.5 cent payable on 16 November 2018 (subject to shareholders approval at upcoming AGM). 30

31 S TAT E M E N T OF F I N A N C I A L P O S I T I O N (RM MILLIONS) 30 JUN JUN 2017 CURRENT ASSETS ,234.4 Trade And Other Receivables Available-for-sale Financial Assets Quoted Equity Shares Cash And Bank Balances NON-CURRENT ASSETS TOTAL ASSETS 1, ,497.9 CURRENT LIABILITIES Trade And Other Payables Loans And Borrowings NON-CURRENT LIABILITIES Other Payable TOTAL EQUITY ,192.3 TOTAL LIABILITIES & EQUITY 1, , Restatement of comparatives due to acquisition of SIL Group and its subsidiaries completed on 18 April Investment in quoted equity shares of GIT, recognised at fair value determined by reference to published price quotations in active market 3. Earn-out consideration payable in FY2021 for acquisition of SIL Group (restated 1 ) 31

32 GROUP OVERVIEW BANKING AGENDA INSURTECH & RETAIL KEY FINANCIALS INVESTOR FACTSHEET 32

33 I N V E S T O R F A C T S H E E T C O M P A N Y O V E R V I E W Q U A R T E R L Y F I N A N C I A L H I G H L I G H T S IR C O N T A C T Silverlake Axis is a leading enterprise technology, software and services company in the high growth Asia Pacific Region. Over the last 30 years, the Group has evolved using mathematics to refine, expand and invent technologies, broadening into new industries like LEE Teong Sang Mobile: teongsang@cyrus.com.sg Asia Pacific, Central Europe, Middle East & Africa Banking, Insurance, Retail, Payment and Logistics Ecosystems. Q U I C K F A C T S Over 40% of the top 20 largest banks in South- East Asia use our core banking solutions 100% successful implementation of enterprise core software applications for over 300 customers Strong financial position with net cash of RM275.8 mil as of 30 June 2018 Core system platform partner of choice for 3 of the 5 largest ASEAN super regional financial institutions S H A R E I N F O ( a s a t 2 3 A u g ) $0.465 (5CP.SI) No. of shares Market Cap Earnings/share (30 June 2018) Dividend/share (FY2018) 2, m S$1,221.4 m 5.09 (RM sen) 3.0 (S$ cent) Q 4 FY G R O U P R E V E N U E RM m RM 145.5m Q 4 FY G R O U P P R O F I T Revenue by Business Activities (RM m) Software Licensing, 14.7 Credit and Cards Processing, 5.0 Insurance Processing 7.9 RM 36.2m Sale of Software and Hardware Products, 2.4 Software Project Services, 9.7 Maintenance and Enhancement Services, Financial Year Ended 30 June (restated) Revenue Gross Profit Net Profit Total Assets 1, ,497.9 Total Liabilities Gross Profit Margin (%) 56% 56% Net Profit Margin (%) 25% 157% Return on Equity (%) 26% 72% 33