X CAPITAL BUY: TARGET PRICE: SGD 9.78 (21.8% UPSIDE) Analysts: Lim Xin Hui Ynez, Oh Zhen Wen Jeremy, Toh Yu Hui, Chen Wei Da, Tammi Wong Silin Connecting All to Help Investors Invest Globally and Profitably 1 Business Overview 9M’21 Net Revenues by Region Singapore Malaysia Hong Kong China 9M’21 Net Revenues by segment Business to Business Business to Consumers Total Revenue 84,900,000 64.6% 21.7% 11.5% 2.2% 62.41% 37.59% Fund Houses Banks/Bond Dealers Stock Exchanges Insurance Companies & Other Product Providers 2 OVERVIEW POSITIONING MAS PROPOSAL CHINA PENSION FUNDS SCALABLE BUSINESS MODEL INVESTMENT FUND REGIME IMPROVEMENT FINANCIALS VALUATIONS RISKS ESG Source: iFAST annual report, Team Analysis 60.2% 22.4% 8.7% 8.3% 61.9% 24.8% 9.6% 3.7% Others Transaction & Commission Income Fx Margin Trailer Fee Revenue Breakdown Recurring Net Revenue Non - Recurring Net Revenue 68% 32% Which consists of... Which consists of... Driven by Recurring Net Revenue Retain highest trailer fee Efficient in retaining its clientele 3 Fintech Solutions IT fees Net interest Income Platform fee Wrap Fee OVERVIEW POSITIONING MAS PROPOSAL CHINA PENSION FUNDS SCALABLE BUSINESS MODEL INVESTMENT FUND REGIME IMPROVEMENT FINANCIALS VALUATIONS RISKS ESG Source: iFAST annual report, Team Analysis 0 5 10 15 20 25 30 35 40 45 50 2017 2018 2019 2020 2021E 2022E 2023E 2024E 2025E APAC Singapore iFAST APAC AUM Wealth And Asset Management vs iFAST AUA in Trillion SGD Industry Overview Exponential Growth In A Growing Sector of financial service professionals said that the pandemic had accelerated the integration of new technology and innovation of middle and back - office (MBO) costs are still linked to personnel. Increasing Demand for Wealth and Asset Management Platforms 90% 50% OVERVIEW POSITIONING MAS PROPOSAL CHINA PENSION FUNDS SCALABLE BUSINESS MODEL INVESTMENT FUND REGIME IMPROVEMENT FINANCIALS VALUATIONS RISKS ESG 4 Source: iFAST annual report, Team Analysis, Finastra Strong Demand Drivers 20% 37% 34% 33% 43% 37% 28% 42% 36% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% Singapore China Hong Kong Ultra - High Net - Worth Growth from 2018 - 2021 40 400 2017 2020 155224 25517 2724 3407 5420 180060 70426 3732 5042 6884 United States China Singapore Hong Kong SAR India 16% 176% 37% 48% 27% Rise in Family Offices in Singapore Saving Rates as % of personal Increasing Ultra High Net Worth Individuals Strong Government Support for Family Offices Untapped savings in a new economic cycle iFAST is geographically strategically located in an emerging population Global - Asia Family Office Circle (GFO Circle) established in late October 2021 to help support family offices in Singapore Post Covid - 19 provides iFAST with a tailwind for untapped household wealth OVERVIEW POSITIONING MAS PROPOSAL CHINA PENSION FUNDS SCALABLE BUSINESS MODEL INVESTMENT FUND REGIME IMPROVEMENT FINANCIALS VALUATIONS RISKS ESG 5 Source: iFAST annual report, Team Analysis, Bloomberg Competitive Positioning 6 Oligopoly in Government Services The chase for digital banking licence Competitive Positioning iFAST is one of only 4 CPFIS - registered Investment Administrator in Singapore One of two appointed Institutional UTS Advisers for Employees Provident Fund (EPF) in Malaysia Recently won the Hong Kong electronic Mandatory Provident Fund (eMPF) contract Eyeing Europe as the next target for digital banking licence iFAST leads consortium applying for one of the 5 Malaysia digital bank licence OVERVIEW POSITIONING MAS PROPOSAL CHINA PENSION FUNDS SCALABLE BUSINESS MODEL INVESTMENT FUND REGIME IMPROVEMENT FINANCIALS VALUATIONS RISKS ESG 7 Source: iFAST annual report, Team Analysis Competitive Positioning Increase in retail investors market flow from 2010 to 2021. 130% Of APAC HWNIs prefer to independently conduct transactions and other services on their own Over 71% Contribution made by retail Investors as compared to institutional investors in 2020. (4.4% vs 2.2%) 2x OVERVIEW POSITIONING MAS PROPOSAL CHINA PENSION FUNDS SCALABLE BUSINESS MODEL INVESTMENT FUND REGIME IMPROVEMENT FINANCIALS VALUATIONS RISKS ESG The Wealth Management and Capital Market has been redefined over the years with... Showing the rise and growth of retail and Do - It - Yourselves (DIY) investors We believe in the need for Wealth Management Platform to cater to the changing Preference of High Net Worth Individuals Showing the dominance and market size of retail investors Thus giving iFAST a Competitive edge as... 8 Source: iFAST annual report, Team Analysis, Bank Of America, Capgemini Our Thesis Reclassification of Investment Products by MAS Entryway into China’s Pension Funds Scalability of Business Model Structural Improvements to Increase Accessibility of Funds 9 To increase accessibility of diversified investment funds to retail investors specific collective investment schemes includin g i nsurance - linked product sub - funds as Excluded Investment Products (EIPs) will be reclassified Offered Products Unit trusts Bonds Stocks & ETFs Cash Account OVERVIEW POSITIONING MAS PROPOSAL CHINA PENSION FUNDS SCALABLE BUSINESS MODEL INVESTMENT FUND REGIME IMPROVEMENT FINANCIALS VALUATIONS RISKS ESG Reclassification Of Investment Products By MAS Source: iFAST annual report, Team Analysis 31.8% 75.4% Increasing Demand for Wealth Management Platforms Growth in their unit trust products in the year 2020 Of their 2020 AUA, making unit trusts the asset with the largest weightage in their AUA portfolio Source: iFAST annual report, Team Analysis 10 Our Thesis Reclassification of Investment Products by MAS Entryway into China’s Pension Funds Scalability of Business Model Structural Improvements to Increase Accessibility of Funds 11 iFAST can explore a joint venture with Chinese firms to establish a pension insurance company in China iFAST has operations in 2 of the top 10 countries with the highest savings rate as of 2021 OVERVIEW POSITIONING MAS PROPOSAL CHINA PENSION FUNDS INVESTMENT FUND REGIME IMPROVEMENT FINANCIALS VALUATIONS SCALABLE BUSINESS MODEL RISKS ESG China’s AUA for private funds recorded a growth of 16.2% in 2020 and is expected to move on an upward trend 12 Entryway Into China’s Pension Funds Source: Bloomberg, Team Analysis China’s AUM in privately offered funds 64% 61% 58% 58% 55% 54% 53% 52% 48% 45% 40% 45% 50% 55% 60% 65% 70% Macau Republic of the Congo Qatar Ireland Brunei Singapore Luxembourg Gabon UAE China Growth Trillion Yuan Growth 12.78 13.74 15.97 18.7% 7.5% 16.2% 0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20% 0 2 4 6 8 10 12 14 16 18 2018 2019 2020 Our Thesis Reclassification of Investment Products by MAS Entryway into China’s Pension Funds Scalability of Business Model Structural Improvements to Increase Accessibility of Funds 13 6,100 7,580 8,050 10,000 14,450 20,308 2016A 2017A 2018A 2019A 2020A 2021E Reliance on a SaaS business model increases automation and reduces operating cost as a fintech platform OVERVIEW POSITIONING MAS PROPOSAL CHINA PENSION FUNDS SCALABLE BUSINESS MODEL INVESTMENT FUND REGIME IMPROVEMENT FINANCIALS VALUATIONS RISKS ESG iFAST continues to record AUA Y - o - Y growth iFAST’s IT workforce remained at a quarter or more reflecting that the group is achieving substantial growth. 14 Scalability Of Business Model In SGD millions Source: iFAST annual report, Team Analysis 25 28 26 28 27 25 26 27 28 29 2017A 2018A 2019A 2020A 2021E Our Thesis Reclassification of Investment Products by MAS Entryway into China’s Pension Funds Scalability of Business Model Structural Improvements to Increase Accessibility of Funds 15 iFAST sees optimistic prospects in its asset management arm with newly introduced investment fund regime structures that add fle xibility to capital maintenance structure for wealth management funds. Hong Kong: Structural improvements in investment fund regimes in operating regions OVERVIEW POSITIONING MAS PROPOSAL CHINA PENSION FUNDS INVESTMENT FUND REGIME IMPROVEMENT FINANCIALS VALUATIONS SCALABLE BUSINESS MODEL RISKS ESG Structural improvements to increase accessibility of funds 16 Limited Partners General Partner Hong Kong Limited Partnership Fund Special Purpose Vehicles/Direct Investments AML Responsible Person Fund Administrator Legal Counsel Custodian External Auditor Investment Manager Investment Management Agreement Singapore: Variable capital company structure iFAST distributing Investment products Wealth Management ARM Sub Fund 1 Sub Fund 2 Sub Fund 3 Source: IQEQ.com, Team Analysis Limited Partnership Agreement Financials 17 25.5% 14.4% 0% 5% 10% 15% 20% 25% 30% 2016A 2017A 2018A 2019A 2020A 2021E 2022F 2023F 2024F 2025F 2026F Scalable Business Model China Segment Taking Off eMPF Project Securing Revenue EBITDA Margin NPAT Margin Large improvement in EBITDA and NPAT for FY2021 25.5% EBITDA Margin for 2021E 14.4% NPAT Margin for 2021E Margin Drivers OVERVIEW POSITIONING MAS PROPOSAL CHINA PENSION FUNDS SCALABLE BUSINESS MODEL INVESTMENT FUND REGIME IMPROVEMENT FINANCIALS VALUATIONS Profitability RISKS ESG 18 Source: iFAST annual report, Team Analysis 22% 27% 9% 12% 0% 8% 15% 23% 30% 38% 45% 0% 5% 10% 15% 20% 25% 30% 2016A 2017A 2018A 2019A 2020A 2021E Strong income generation, producing superior ROE with healthy level of debt in the form of lease iFAST ROE Peers ROE iFAST Debt - to - Asset Debt - to - Assets ROE 7.31 10.98 $0 $2 $4 $6 $8 $10 $12 2016A 2017A 2018A 2019A 2020A 2021E ... translated to high EPS and Capital Gain Share Price EPS Dividends Per Share 2.3x ROE for 2021E S$10.98 EPS for 2021E OVERVIEW POSITIONING MAS PROPOSAL CHINA PENSION FUNDS SCALABLE BUSINESS MODEL INVESTMENT FUND REGIME IMPROVEMENT FINANCIALS VALUATIONS Strong Income Performance Source: iFAST annual report, Team Analysis, Capital IQ RISKS ESG 19 Valuations & Risks 20