CORPORATE PRESENTATION. February 2019

Transcription

1 CORPORATE PRESENTATION February 2019

2 DISCLAIMER This presentation may contain statements regarding the business of Silverlake Axis Ltd and its subsidiaries (the Group ) that are of a forward looking nature and are therefore based on management s assumptions about future developments. Such forward looking statements are typically identified by words such as believe, estimate, intend, may, expect, and project and similar expressions as they relate to the Group. Forward looking statements involve certain risks and uncertainties as they relate to future events. Actual results may vary materially from those targeted, expected or projected due to various factors. Potential risks and uncertainties include such factors as general economic conditions, foreign exchange fluctuations, interest rate charges and regulatory developments. Such factors that may affect the Group s future financial results are detailed in our listing prospectus / circulars, listed in this presentation, or in the management discussion and analysis section of the company s result report and filing with the SGX. The reader is cautioned to not unduly rely on these forward-looking statements. We do not undertake any duty to publish any update or revision of any forward looking statements. The information contained in this presentation has not been independently verified. No representation or warranty expressed or implied is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions contained in this presentation. Neither Silverlake Axis or any of its affiliates, advisers or representatives shall have any liability whatsoever for any loss arising, whether directly or indirectly, from any use or distribution of this presentation or its contents. This presentation is for information only and does not constitute an invitation or offer to acquire, purchase or subscribe for shares in Silverlake Axis. 2

3 GROUP OVERVIEW BANKING AGENDA INSURTECH AND RETAIL KEY FINANCIALS INVESTOR FACTSHEET 3

4 T H I S I S O U R FOUNDATION COMPUTING PRINCIPLES GROUNDED ON MATHEMATICAL MODELS OUR TECHNOLOGIES REFINED, EXPANDED & INNOVATED TO BECOME ASIA PACIFIC S LARGEST DIGITAL ECONOMY SOLUTIONS COMPANY OUR V I S I O N SETS US APART 4

5 OUR MISSION CUSTOMERS 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 INVESTORS TO BE THE LEADING FINTECH COMPANY HIGHLY VALUED BY CUSTOMERS & PARTNERS PARTNERS To work collaboratively together and deliver the best value of our customers To create an innovative & entrepreneurial environment, enriched with diversity & open communication EMPLOYEES 5

6 MARKET LEADERSHIP 30 YEARS OF MAKING DIGITAL TRANSFORMATION WORK 100% CUSTOMER TRACK RECORD 100% successful implementation of enterprise core software applications for over 380 customers REGIONS COVERED Asia Pacific, Europe, Latin America Middle East & Africa INDUSTRIES TRANSFORMED Banking, Insurance, Retail, Payment and Logistics Ecosystems 6

7 PRODUCT EVOLUTION 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 NEW SOLUTIONS THROUGH R&D NEW ACQUISITIONS & PARTNERSHIPS COLLABORATIONS WITH CUSTOMERS & PARTNERS INDUSTRY DIGITAL TRANSFORMATION & KNOWLEDGE SHARING GROWTH DRIVERS OUR SOLUTIONS 7

8 BUSINESS EVOLUTION T H R O U G H M & A Since our listing in Singapore's Stock Exchange (2003), the group has evolved through ongoing Mergers & Acquisitions 2006 SAACIS* New Product (SIBS) 2014 Finzsoft Solutions New Geography (Australia, New Zealand) 2009 Silverlake Japan New Geography & Product (Card & Credit Processing in Japan) 2015 Silverlake Symmetri Retail Banking New Geography (Central Europe, EMEA, South Asia) 2010 Silverlake Solution New Product (Maintenance & Enhancement) QR Technology New Industry (Retail) Silverlake Digitale New Product (Payment solutions) 2011 Symmetric Payments & Integration New Product (Enterprise payment & integration) Silverlake Digital Economy New Product (Digital banking) X Infotech New Product (Solutions for issuance and verification of digital identity documents and smart cards) 2013 Merimen Group New Industry (Insurance) Cyber Village New Product (E-commerce marketplace ) New Product Refers to Silverlake Adaptive Applications & Continuous Improvement Services Ltd (Rules-based applications & tools) Silverlake One Paradigm 2019

9 ECOSYSTEM 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, Latin America, 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 230 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 130 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, Vietnam, Cambodia & Indonesia Over 38,000 Suppliers More than 425 Retail Outlets 9

10 EXPANSION OF INCOME BASE RM541.8 FY2018 REVENUE RM146.9 FY2008 REVENUE RM27.8 FY2005 REVENUE Our acquisitions not only added depth and range to the Group s portfolio of software solutions and services, but also broadened the Group s income base with new revenue streams *Revenue in million RM 10

11 Our founder, Mr. Goh Peng Ooi continues to drive the vision with the Board and Management AN EXPERIENCED & HIGH PROFILE LEADERSHIP BOARD OUR PEOPLE BOARD OF DIRECTORS Forward-looking and Notable Board with Over 25 Years of Experience in Various Industries 1,700 EMPLOYEES >25 YEARS IN LEGAL PRACTICES >30 YEARS IN INFORMATION TECHNOLOGY >30 YEARS IN FINANCIAL SERVICES >45 YEARS OF EXTENSIVE S E N I O R MANAGEMENT EXPERIENCE CHAIRMAN OF MULTIPLE FINANCIAL INSTITUTES & ADVISORY COUNCILS KEY MANAGEMENT TEAM Experienced and Dynamic Management Team with Proven Track Record in Managing High Growth Companies 80% TECHNOLOGY TEAM Goh Peng Ooi 2. Dr. Kwong Yong Sin 3. n/a 4. Ong Kian Min 5. Datuk Yvonne Chia 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. Voon Seng Chuan (not in pic) 11. See Chuang Thuan (not in pic) 9 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 10

12 SAL SECURES NEW CORE BANKING CONTRACTS 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) SAL WIN HONG KONG D I G I T A L S O L U T I O N S IMPLEMENTATIONS May 2018: 2-year phased rollout for a HK established consumer credit provider s digital payment ecosystem by Digitale and One Paradigm RECENT ACHIEVEMENTS IN FY2018 FOR THE GROUP CYBER VILLAGE WINS IBM ASIA 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 RETAIL PRESENCE & 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 STRENGTHEN INSURANCE PRESENCE & E X P A N D S TRUESIGHT 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 12

13 RECENT ACQUISITION SIA X INFOTECH GROUP On 09 Nov 2018, the Group entered into a conditional sales and purchase agreement to acquire 80% stake in SIA X Infotech Group ( Xinfo ). Consideration for 80% stake in Xinfo comprises an Initial Consideration of up to EUR17.6m and an Earn-Out Consideration which is conditional on the undertaking of IPO by Xinfo. The remaining 20% is to subject to conditional put and call options. Rationale foracquisition To enhance and expand SAL Group s digital economy offerings to its customers ecosystems, particularly in the areas of public and private enterprise digital identity and security solutions for customer identity economics, social and financial inclusion, security, and payments. About XInfo Headquartered in Latvia with a subsidiary in Kenya, Xinfo is a software solutions provider for issuance and verification of electronic identity and security documents and financial smart cards Market presence in over 45 countries including Europe, Asia, Africa and Latin America Customer base includes governments, banks and financial institutions

14 GROUP OVERVIEW BANKING AGENDA INSURTECH AND RETAIL KEY FINANCIALS INVESTOR FACTSHEET 14

15 MARKET LEADERSHIP 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 CORE SYSTEMS ARE USED AT GLOBAL SITES Core System Platform Partner of Choice for 3 OF THE 5 SUPER REGIONAL Financial Institutions 15 DIGITAL TRANSFORMATION ENABLEMENT Banks achieve greater operational efficiencies, quicker time to roll out new digital innovations EXCELLENT SOFTWARE CAPABILITY Our core solutions handle ~300 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

16 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,

17 CORE BANKING RECENT WINS 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 17

18 MOBILE ONBOARDING WITH FACIAL BIOMETRIC RECOGNITION 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 RECENT FINTECH PLATFORM SUCCESSES DIGITAL BANKING TRANSFORMATION ACCELERATION WITH CHANNEL APIS 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 SMART BRANCH WITH OMNI- CHANNEL CAPABILITIES 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 DIGITAL OMNI- CHANNEL PLATFORM A UAE-based bank adopted our API architecture & now delivers financial services anytime, anywhere, and on any device for their customers 18

19 In the 1 st 6 months of FY2019, the Group has secured 8 contracts to deliver innovative and transformative digital solutions to existing customers. The contracts are expected to contribute positively to the results of FY2019 RECENT SUCCESSES DIGITAL INNOVATIONS 3 MAJOR FINANCIAL SERVICES GROUP Innovative payment solutions to enable growth in their digital business ecosystem for the future 2 FINANCIAL SERVICES PROVIDERS Channel innovations to enhance customers digital experience 3 ESTABLISHED FINANCIAL INSTITUTIONS Services to support their digital banking and payments transformation initiatives

20 Customer Value and Revenue Per Customer Relationship Initial Software License License Project Services Maintenance & Enhancement Project Services Additional Revenue from Upgrade & Expansion BANKING BUSINESS M O D E L Time 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 Maintenance & Enhancement 20

21 GROUP OVERVIEW BANKING AGENDA INSURTECH & RETAIL KEY FINANCIALS INVESTOR FACTSHEET 21

22 Thailand (2015) China (2018) Vietnam (2016) Hong Kong (2017) Taiwan (coming soon) Philippines (2016) MARKET LEADERSHIP I N I N S U R A N C E Malaysia (HQ) (2000) Singapore (2006) USED BY ALL INSURERS ASIA S TOP INSURANCE SOFTWARE- AS- A - SERVICE (SAAS) COMPANY Indonesia (2006) FACILITATE INSURANCE TRANSACTIONS WORTH 3 BILLION US$ YEARLY 130 Insurers & Takaful Operators INSURANCE ECOSYSTEM PARTNERS 5,000 Repairers & Motor Franchisers 25 Major Automobile Brands 250 Loss Adjusters & Law Firms 2,000 Insurance Intermediaries MORE THAN 18 YEARS OF SECTOR- SPECIFIC EXPERIENCES REGIONAL PARTNERS 22

23 MERIMEN CASE STUDY FOR MOTOR CLAIMS 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

24 MERIMEN S O L U T I O N S FOR DATA ANALYTICS 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 24

25 Total Revenue Merimen capitalises on the strong insurance ecosystem and SaaS model that brings recurring income and growing revenue that is tied to customers success Ecosystem Transaction Fees Insurers' Transaction Fees Ecosystem Subscription Insurers' Subscription MERIMEN BUSINESS M O D E L PER TRANSACTION FEE SUBSCRIPTION STRONG REVENUE TIED TO GROWTH STICKY INCOME IN AN ECOSYSTEM STABLE INCOME WITH LOW CHURN RATE Customer Base Insurer Insurer Ecosystem Partners* BENEFITS OF SAAS MODEL & ECOSYSTEM PARTNERSHIP *Ecosystem refers to agent, brokers, surveyors, lawyers, repairers, parts suppliers 25

26 China Cambodia Vietnam Malaysia (HQ) Singapore MARKET LEADERSHIP I N R E T A I L T E C H OVER 20 YEARS OF EXPERIENCE WITH PROVEN TRACK RECORD IN RETAIL ENTERPRISE SOLUTIONS Indonesia COMPLETE END- TO- END RETAIL AUTOMATION SOLUTION FOR GLOBAL RETAILERS QRRA RETAIL ECOSYSTEM 18 Retail Installations Across the Region 38,000 Suppliers Using the System 425 Retail Outlets Covered 26

27 TOTAL SOFTWARE SPENDING IS SHIFTING FROM ON-PREMISE TO CLOUD 100% 80% 60% 40% 20% 0% Q R R A MARKET TREND 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,

28 QRRA s RECENT WIN 04 JAN 2019 Secured a software and services contract with AEON Vietnam and provide user licenses and data migration services Contribute Positively to the Results of SAL for Financial Year 2019 AEON Vietnam, wholly owned by AEON Group Japan, commenced its operations in October 2011 using QRRA s PROFIT With its rapid expansion in Vietnam, AEON Vietnam has partnered QRRA to support its current and future business growth 28

29 GROUP OVERVIEW BANKING AGENDA INSURTECH & RETAIL KEY FINANCIALS INVESTOR FACTSHEET 29

30 FINANCIAL H I G H L I G H T S Q 2 FY2019 RESULTS SUMMARY (RM Million) Q2 FY2019 Q2 FY2018 % CHANGE (restated) Revenue Gross Profit Other Income Profit Before Tax Income Tax (13.0) (7.2) +81 Net Profit * Note: Restatement of comparatives due to acquisition of Silverlake Investment Ltd and its subsidiaries ( SIL Group ) completed on 18 April

31 FINANCIAL H I G H L I G H T S 1 H FY2019 RESULTS SUMMARY (RM Million) 1H FY2019 1H FY2018 % CHANGE (restated) Revenue Gross Profit Other Income Profit Before Tax Income Tax (22.6) (11.2) +101 Net Profit * Note: Restatement of comparatives due to acquisition of Silverlake Investment Ltd and its subsidiaries ( SIL Group ) completed on 18 April

32 FINANCIAL H I G H L I G H T S 20% 99% Q2 FY2019 Group Revenue RM169.0m Q2 FY2019 Net Profit RM67.5m Group revenue rose 20% to RM169.0m in Q2 FY2019 Revenue from all business activities increased, except sales of software and hardware products as well as credit and cards processing Project related revenue increased significantly by 55% from RM25.0m in Q2 FY2018 to RM38.7m in Q2 FY2019 Gross profit margin improved to 64% compared to 58% in Q2 FY2018 With higher revenue, net profit attributable to shareholders jumped 99% to RM67.5m 32

33 Q 2 F Y R E V E N U E BY BUSINESS ACTIVITIES Q2 FY2018 Q2 FY % Project related revenue increased significantly by 55% from RM25.0m in Q2 FY2018 to RM38.7m in Q2 FY % 44% % % 98% Sale of Software and Hardware Products Credit and Cards Processing Software-as-a-Service - Insurance Software Project Services Software Licensing Maintenance & Enhancement Services 33

34 1 H F Y R E V E N U E BY BUSINESS ACTIVITIES 1H FY2018 1H FY % % 12% % % 223% Sale of Software and Hardware Products Credit and Cards Processing Software-as-a-Service - Insurance Software Project Services Software Licensing Maintenance & Enhancement Services 34

35 *Dividend in Singapore cents per share DIVIDEND FIRST INTERIM SECOND INTERIM THIRD INTERIM FINAL SPECIAL TOTAL FY FY FY FY FY DIVIDEND F Y 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 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 paid on 16 November Second interim dividend will be payable on 8 March

36 STATEMENT OF FINANCIAL POSITION (RM MILLION) 31 DEC JUN 2018 CURRENT ASSETS Trade And Other Receivables (restated 1 ) Financial Assets At Fair Value Through Other Comprehensive Income - Quoted Equity Shares Cash And Bank Balances NON-CURRENT ASSETS TOTAL ASSETS 1, ,007.3 CURRENT LIABILITIES Trade And Other Payables Loans And Borrowings NON-CURRENT LIABILITIES Other Payable TOTAL EQUITY TOTAL LIABILITIES & EQUITY 1, , Restatement of comparatives due to acquisition of SIL Group 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 36

37 GROUP OVERVIEW BANKING AGENDA INSURTECH & RETAIL KEY FINANCIALS INVESTOR FACTSHEET 37

38 INVESTOR FACTSHEET COMPANY OVERVIEW QUARTERLY FINANCIAL HIGHLIGHTS IR CONTACT 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. QUICK FACTS 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 SHARE INFO( a s a t 4 F e b ) $0.500 (5CP.SI) No. of shares Market Cap Earnings/share (31 Dec 2018) Dividend/share (Q2 FY2019) 2, m S$1,321.1 m 4.73 (RM sen) 0.4 (S$ cent) Q 2 FY2019 G R O U P REVENUE RM m RM 169.0m Revenue by Business Activities (RM m) Financial Year Ended 30 June (RM m) Q 2 FY2019 G R O U P P R O F I T Software Licensing, 19.7 Credit and Cards Processing, 2.7 Software-as-a-Service - Insurance 8.0 Software Project Services, 19.0 RM 67.5m Sale of Software and Hardware Products, 0.6 Maintenance and Enhancement Services, (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%