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Corporate PresentationQ1 FY2017
DisclaimerThis presentation may contain statements regarding the business of Silverlake Axis Ltd and itssubsidiaries (the “Group”) that are of a forward looking nature and are therefore based onmanagement’s assumptions about future developments. Such forward looking statements are typicallyidentified by words such as ‘believe’, ‘estimate’, ‘intend’, ‘may’, ‘expect’, and ‘project’ and similarexpressions as they relate to the Group. Forward looking statements involve certain risks anduncertainties 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, foreignexchange fluctuations, interest rate charges and regulatory developments. Such factors that mayaffect the Group’s future financial results are detailed in our listing prospectus / circulars, listed in thispresentation, or in the management discussion and analysis section of the company’s result reportand filing with the SGX. The reader is cautioned to not unduly rely on these forward-lookingstatements. We do not undertake any duty to publish any update or revision of any forward lookingstatements.The information contained in this presentation has not been independently verified. No representationor 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 liabilitywhatsoever for any loss arising, whether directly or indirectly, from any use or distribution of thispresentation 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.
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Company Info
A leading enterprise technology, software and services company in the high growth Asia Pacific Region
Market Size
40% of leading SE Asian banks use our enterprise financial technology solutions and services
Track Record
27 years of successful implementation of enterprise core software applications in over 200 customer sites with 100% success rate
Balance Sheet (FY2016)
Strong balance sheet with net cash of RM357.8 mil as of 30 September 2016
Revenue (FY2016)
23% growth in Group revenue to RM636.3 mil, as a result of higher contribution from software project services, maintenance & enhancement & insurance processing
Profit MarginsStrong FY2016 EBITDA marginof 50% above most peers with growth in maintenance & enhancement services revenue from existing and new customer engagements
Industry Coverage
Banking, Insurance, Retail, Payment and Digital Commerce
Clients
Over 300 customers using the Group’s software solutions and services. Core system platform partner of choice for 3 of the 5 largest ASEAN super regional financial institutions
Countries Covered
ASEAN, China, Japan, Australia,New Zealand, EMEA (Europe, Middle East, Africa) and South Asia
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Our Mission
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To be the leading fintech company, highly valued by our customers and partners
Cum
ulat
ive
Rev
enue
Per
Cus
tom
er R
elat
ions
hip
Time
Increasing Value Add to Customers
Time Series Recurring License Revenue
Annual Recurring Maintenance Revenue
Repeatable Project Implementation Revenue
Maintenance & Enhancement
Services
Project Services
Initial Software License
Software Licence
Expansion/ Upgrade
Software Licence
Expansion/ Upgrade
Software License
Growing Core Customer Revenues
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Note:Silverlake Solution Limited (SSB), QR Technology Sdn Bhd (QR), Symmetric Payments & Integration Holdings Pte Ltd (SPIHPL) (fka Isis International Pte Ltd), Merimen Group, Cyber Village Sdn Bhd (CVSB), Finzsoft Solutions Ltd (Finzsoft)* Refer to SAL’s announcement on 18 December 2014 for entry into a lock-up agreement in relation to a full takeover offer for shares in Finzsoft Solutions Ltd.**Completed acquisition of SunGard Ambit (Singapore) Pte. Ltd. on 1 October 2015 and branded business as Silverlake Symmetri (Singapore) Pte. Ltd.
Business Evolution & Transformation
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FY2016 RevenueRM636.3 mil
Software Licensing RM127.9 m
20%
Maintenance & Enhancement
Services RM346.2 m
54%
Sale of Hardware Products RM16.7 m
3%
Software Project Services
RM100.1 m 16%
Credit and Cards Processing RM20.1 m
3%
Insurance Processing RM25.3 m
4%
Sale of Hardware Products
Licensing of SIBS
RM90.6 m 61%
Branch Banking Maintenance
FY2008 RevenueRM146.9 mil
RM19.0 m 14%
RM16.4 m 11%
RM20.9 m 14%
Sale of Branch Banking Solution
FY2005 RevenueRM27.8 mil
Sale of Branch Banking Solution
Branch Banking Maintenance
RM19.4 m 70%
RM8.4 m 30%
2006 to 2009 2010 to 20162003 to 2005
Axis Systems Limited(Listed on SGX in 2003)
Silverlake Axis Limited(Post SIBS Acquisition 2006)
SSB, QR, SPIHPL, Merimen, CVSB, Finzsoft* & Ambit
Retail Banking** Acquisitions
2016 & Beyond
Delivery Channels & Branch BankingSolutions
Core Banking &Payments Solutions
Structured Software Maintenance & Project Services, Retail, Logistics, Integration Software, Insurance,
Mobility & Internet Solutions, Financial Services Solutions
+ + +
Asia Pacific’s Largest
Digital EconomySolutions Company
Digital Economy Transformation
Partnerships Across Asia and Beyond
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Prominent Core Banking Provider in Asia Pacific Market
Australia
Internal/ Older proprietary, SAP, Oracle, Hogan
Local/ Internal/ Older Systems, Temenos, TCS
ChinaLocal/ Internal/ Older Systems
Hong KongTaiwan
Infosys, Oracle, TCS FNSIndia
Silverlake AxisIndonesia
MalaysiaSingapore
Silverlake Axis
Silverlake Axis, FIS, Infosys
Philippines
Internal and proprietary systems
Local core banking applications, Hyundai
South Korea
Silverlake Axis, FIS VietnamThailand
Note: The list of prominent core banking vendors in each market changes when non-top 10 institutions are included
Source: Table 1 - Leading Core Banking Players in the Top 10 Bank Segments in 12 Asia/Pacific Countries, IDC Financial Insights, 2013
Leader in the IDC MarketScape Global Core Banking Survey
Based on the December 2014 IDC MarketScape Global Core
Banking Survey*, Silverlake is ranked as the Leader in Core Banking
System based on Capabilities and Strategies
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*Note: Survey is done by IDC Financial Insights and is based on analysis and buyer perception. IDC is a leading provider of data-driven research and analysis in the Asia Pacific
Comprehensive Core Banking Solution
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Board of Directors Profile
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Dr. Kwong Yong SinCEO & Group Managing Director
Tan Sri Dato’ Dr. Lin See YanIndependent Non-Executive Director
Dr. Kwong Yong Sin was appointed as the Group Managing Director on 1 November 2005. He was previously the Managing Director of SilverlakeCorporation from 2001 to 2005 where he completed several key SIBS customer transformation projects. Prior to Silverlake, he was the Partner and Senior Vice President of Ernst & Young and Cap Gemini E&Y Consulting.
Goh Peng OoiFounder & Group Executive Chairman
Mr. Goh Peng Ooi was appointed as the Group Executive Chairman of SilverlakeAxis Ltd (“the Company”) on 23 May 2006. Prior to that, he was the Non-Executive Chairman of the Company since 2002. He founded SilverlakeGroup in 1989 and has built it to become a leading provider of state-of-the-art universal banking solutions, payment and retail solutions.
Tan Sri Dato’ Dr. Lin See Yan was appointed a Director in January 2003. Tan Sri is currently a member of the Prime Minister’s Economic Council Working Group and sits on various boards. Prior to 1998, he was Chairman and CEO of the Pacific Bank Group and for 14 years previously, he was the Deputy Governor of Bank Negara Malaysia (Central Bank of Malaysia).
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Lim Kok MinIndependent Non-Executive Director
Mr. Lim Kok Min was appointed a Director in June 2006. Mr. Lim has more than 45 years of extensive senior management and over 30 years of board experience in the Asia-Pacific region. He is currently the Chairman of IREIT Global Group Pte Ltd & Chairman of Boustead Projects Ltd. He is the immediate past Chairman of Gas Supply Pte Ltd, the Singapore Institute of Directors, of Building & Construction Authority and of Senoko Power Limited.
Ong Kian MinIndependent Non-Executive Director
Mr. Ong Kian Min was appointed a Director in January 2003. Mr. Ong is concurrently an Advocate and Solicitor practicing as a consultant with Drew & Napier LLC and a Senior Adviser with Alpha Advisory Pte.Ltd., an independent corporate advisory group providing advice to companies and businesses in the Asia Pacific region. With more than 20 years of legal practice, he focused on corporate and commercial law, joint ventures, IPOs and corporate finance.
Datuk Sulaiman Bin DaudNon-Executive Director
Datuk Sulaiman bin Daud was appointed a Director in January 2003. He was a Director of the Agricultural Bank of Malaysia for two years and later became Chairman for eight years. Under his leadership, the Bank was transformed into a corporatised entity, today known as AGRO Bank. Datuk Sulaiman is currently the Chairman, member of Audit Committee and Chairman of Nomination Committee of Malaysia Packaging Industry Berhad.
Board of Directors Profile
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Goh Shiou LingNon-Executive Director
Ms. Goh Shiou Ling was appointed a Director in June 2015. She is currently involved in investment opportunities evaluation and strategic acquisitions to enhance the Silverlake Private Entities’ Digital Economy offerings. She is also spearheading several corporate initiatives focusing on growth and value creation in the Silverlake Private Entities. Prior to this, Ms. Goh worked at Cornerstone Research, a leading U.S. based economic consulting firm.
Datuk Yvonne Chia Independent Non-Executive Director
Tan Sri Dato’ Dr Mohd Munir bin Abdul MajidIndependent Non-Executive Director
Tan Sri Dr Munir Majid was appointed a Director in June 2015. He established the Securities Commission in 1993 and was the founding Executive Chairman until 1999. He drafted Malaysia’s 1st code of corporate governance in the aftermath of the Asian Financial Crisis. He is currently Chairman of Bank Muamalat, of CIMB ASEAN Research Institute and of the ASEAN Business Advisory Council, as well as President of the ASEAN Business Club.
Datuk Yvonne Chia was appointed a Director in June 2015. With over 30 years of experience in the financial services industry, she held various leading positions including Chief Executive of RHB Bank Berhad (1996-2002) and Group Managing Director/Chief Executive of Hong Leong Bank Berhad (2003-2013). She is currently on the Board of Trustees for PemanduCorporation, Prime Minister’s Office and a Trustee for Teach for Malaysia.
Board of Directors Profile
Mary Yau Siew MoiSenior EVP, SIBS Core Solutions
Tan Soo ChengSenior EVP, Structured Services
Hoong Lai LingSenior EVP, Administration and Finance
Ms. Yau has been a key driver in the Group’s growth over the past 27 years and is one of the pioneer employees. Under her leadership, she has grown and enriched the capabilities of the core banking solution portfolio particularly in lending solutions. She is currently responsible for core product development of SIBS and works collaboratively with other entities within the Group to offer digital transformation propositions to customers.
Wong Yok Koon Senior EVP, SIBS Core Solutions
Ms. Wong is one of the pioneer employees and was instrumental in driving the Group’s core banking solution portfolio growth. She has over 27 years of experience in core banking development and deployment at major regional and local financial institutions. Today, she continues to be responsible for core product development of Silverlake Axis Integrated Banking Solution (SIBS) particularly in cards and payments, and works with customers in their digital economy transformation.
Ms. Tan is responsible for the SIBS Application Maintenance and Enhancement business. Prior to assuming this role, she was a Director in the Silverlake Private Entities in charge of Program/Project Management, Strategic Planning and Business Process Transformation. Her 28 years of Financial Services Industry experience includes previous senior roles in CapGemini, Ernst & Young, Malaysia and Commonwealth Bank, Australia. She holds a Bachelor of Science in Computing and Economics along with a Graduate Diploma in Information Technology from Monash University, Australia.
Ms. Hoong is responsible for overseeing the Group’s financial and administrative functions. She has 25 years of experience in auditing and financial managerial positions. She is a qualified accountant from the Malaysian Institute of Certified Public Accountants and was trained in Pricewaterhouse Malaysia. Prior to her current role, she was an accountant at Silverlake System from 1996 to 2002. She is also a member of the Malaysian Institute of Accountants.
Key Management Team Profile
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Fabian Lum Wai KitSenior EVP, Digital Financial Solutions
Lee Cheen SiongEVP, SIBS Channel Solutions
Hidetoshi NedaManaging Director, Silverlake Japan Ltd
Mr. Lum has 19 years of financial services experience that spans multiple areas including wealth management products, digital marketing, and core banking leadership roles. Since joining the group in 2015, he has been responsible for driving digital financial services in insurance, banking and payments, and chart collaborations while harnessing new platforms and digital disruptions. He spent 18 years running multiple leadership roles in OCBC Bank Singapore, and started his career in marketing with Procter & Gamble. He has a Masters of Business Administration and a Bachelor’s degree in Economics and Mass Communication from the National University of Singapore
Jean Aw Peng MeiSenior EVP, Group Organisation, Strategy & Synergy
Ms. Aw works with the CEO & Group MD on corporate strategies and priorities. In this new role, she supports the organization overall planning process, orchestrates change and drives execution of Group strategy and synergy initiatives. She previously served as Senior EVP Digital Enterprise Solution since joining the Group in 2014. She has 27 years of experience in business and technology transformation of a number of global, regional and local banks. Prior to her current role, she was Vice President at OCBC Bank and was previously Director at Ernst & Young Advisory Services. She is a Computer Science graduate from the Royal Melbourne Institute of Technology, Australia
Since joining the Group in 1995, Mr. Lee has focused on the development and implementation of Branch Delivery and Channels Solutions at major local and regional financial institutions. His current emphasis is to empower mobility in the SIBS channel solutions by concentrating on product development. He was appointed EVP in June 2012, and has 20 years of experience in the banking software industry. Prior to his current role, he was the country manager for Silverlake Axis in Beijing, China. He graduated with an Information Systems degree from Campbell University, Malaysia.
The growth and expansion of Silverlake Axis Group’s business in Japan has been Mr. Neda’s responsibility since he joined the Group in 2009. In his 25 years of experience in the Credit Card and Retail Banking industries, he played a lead role in the Japan credit card market by developing new credit card products, payment products and services. These business products were successfully implemented in MasterCard, Citibank N.A., Shinsei Bank, Tokyo Star Bank and SBI Group. He holds a Law degree from Hokkaido University, Japan.
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Key Management Team Profile
Tok Meng GeokSenior EVP, Symmetric Payments & Integration
Ms. Tok is the key person in charge of the design and development of Symmetric Payments & Integration’s solutions and roadmap. She is also responsible for project services operations to deliver new systems as well as to maintain and enhance the installed systems at customer sites. Her career of 27 years spans across banking technologies, system integration and solutions implementation at various regional and domestic banks. She graduated with a Bachelor of Science (Computer Science) degree from the National University of Singapore.
Yew Yee MingSenior EVP, QR Retail Automation (Asia) Sdn Bhd
Mr. Yew has 26 years of work experience in the retail industry covering software development, implementation, retail industry application consulting, project management and account management. Joining QR in 1995, he has driven business growth with the implementation of the QR Retail Automation solution “PROFIT” across China, Taiwan, Singapore, Vietnam, Cambodia, Indonesia and Philippines. He is now the senior executive in charge of projects and consulting as well as business development with large ASEAN retail groups. With his qualification in Computer Studies, he began his career as an analyst programmer in Parkson Corporation, Malaysia.
Sua Shii Huey Director, Cyber Village Sdn Bhd
With more than 20 years of business development and project management experience under her belt, Ms. Sua is one of Cyber Village’s founding employees. She specializes in e-commerce implementations and managing small to large enterprise scale e-business projects. Before joining Cyber Village, Ms. Sua was part of the team which set up the first image bank/ stock photo company in Malaysia, Ultra Dimension. She successfully collaborated with stock photo agencies in Singapore, Hong Kong and China. She has a Bachelor Degree in Information Technology from Charles Sturt University, Australia
Shieh Yee Bing Director, Cyber Village Sdn Bhd
At Cyber Village since 2000, Ms. Shieh focuses on large enterprise scale projects and the development of key banking accounts. She also leads product development with a special emphasis on portal and internet mobile financial self-service solutions while continuing to manage Cyber Village’s day to day operations. Her career spans 20 years, and she has experience in e-business projects across financial services, logistics, and education industries. She holds a Bachelor of Arts (Hons) from the National University of Singapore.
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Key Management Team Profile
Kesavan NagaianSenior EVP, Silverlake Symmetri
Mr Nagaian heads Silverlake Symmetri’s Core Banking & Channels business. He brings invaluable experience to the Group having spent over 12 years in pre-sales, client services, professional services & product development in SunGard retail banking business. He is also responsible for driving product innovation and delivering value to customers in Digital Financial Technology. With more than 3 decades of banking industry experience across Asia and EMEA, he brings a great depth of technical skills and management capabilities. He holds a Master’s Degree in Business Administration and Master’s Degree in Econometrics from University of Madras, India.
Craig ParkesSenior EVP, Silverlake Symmetri
In the Group’s recently acquired business, Mr. Parkes is responsible for the overall growth and ongoing operations of Silverlake Symmetri. He also heads the Global Sales as well as the EMEA operations. Craig has extensive experience working with regional and global banks in Europe to build technology driven retail banking strategies while helping customers optimize efficiency and increase profitability. During this 25 years career, he had successful association as Senior Director, Account Management at SunGard, as Business Development Manager at Misys, as Client Services Director at Temenos UK Ltd and as dealer at Bank Hapoalim.
Trevor Lok Theng HeyChief Executive Officer, Merimen Group
As one of the earliest employees of Merimen, Mr. Lok has played an instrumental role in its early success. His present responsibilities include overseeing the overall strategy and operations of Merimen’s business while continuing to lead its business development and expansion. He dynamically led the development of Merimen’s insurance policy solutions before he assumed his current role in 2013. He has over 14 years of experience in the insurance solutions and services industry. He holds the Highest Honors Degree in Physics and Mathematics from the University of Texas at Austin, USA. He was a Research Fellow at Princeton University, USA and a Physics Doctoral Candidate and Research Fellow at Caltech, USA
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Key Management Team Profile
Acquisitions Made: 2010 - 2015
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In addition to broadening the Group’s income base, these acquisitions have added depth and range to the Group’s portfolio of software solutions and services to deliver and support our customers’ transformations initiatives to compete and profit from the digital economy
* Refer to SAL’s announcement on 18 December 2014 for entry into a lock-up agreement in relation to a full takeover offer for shares in Finzsoft Solutions Ltd.**“Silverlake Symmetri Retail Banking” was formerly known as SunGard Ambit Retail Banking
Cyber Village (Mobile & Internet
Solution)
QR Technology (Retail & Logistic
Solution)
SymmetricPayments & Integration
(Enterprise Payment & Integration
Platform)
FinzsoftSolutions*
(Solutions for Banks & Financial
Institutions in New Zealand and Australia)
Silverlake Symmetri
Retail Banking**(Retail Banking
Solution)
SilverlakeSolution
(Structured Software Maintenance &
Project Services)
MerimenGroup
(Insurance Claims & Policies Processing
Software as a Service ‘SaaS’ Platform)
2011 20132010 2014 2015
Silverlake Axis Associate in China –Global InfoTech (GIT)
• Provides financial informationsoftware products andintegrated services in China.
• Offers cloud computing anddata center solutions; andbusiness consulting andinformation technologymanagement services.
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• Listed on ChiNext of the Shenzhen Stock Exchange in May2015
• Following the listing, SAL (via Silver Team TechnologyLimited) holds 27,000,000 GIT shares (approx. 20.01% ofGIT total issued share capital)
• At the end of the moratorium period, SAL announced on 1June 2016 and 15 November 2016 that it may sell up to8,000,000 (before bonus) and 20,800,000 of its GIT Shares,within six-month period from 24 June 2016 and 6 December2016 respectively.
• On 26 Oct 2016 (book closure date), GIT issued bonus sharesof 49,500,000 to SAL pursuant to GIT’s 20161H profitdistribution plan by using its capital reserve to issue 22 newbonus shares for every 10 existing shares held byshareholders of GIT at book closure date.
• As at 31 December 2016, our shareholding is 11.92%
On 25 November 2016, GIT issued shares of 2,784,000 toeligible
employees pursuant to GIT’s restricted employee
shares incentive plan.
On 19 December 2016, GIT issued 14,745,442 shares aspart consideration for acquisition of 100% equity interest inShanghai RuiMin Internet Technology Co. Ltd. (“RuiMin”).3,639,215 new GIT shares were also issued and placedout by GIT through private placements.
•
•
Our Recent Acquisition
• Brings an established open-platform product offering for core banking, channels and card/payments
• Offers an alternative competitively-priced product to penetrate medium-low segment whilst allowing SIBS to maintain premium pricing
• Adds more than 50 new customers to Silverlake Axis current base of over 150 customers
• Extends our geographical reach to Eastern Europe, Middle East, South Asia while creating a stronger market leadership in South East Asia
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Acquisition of Silverlake Symmetri Retail Banking** in October 2015
**“Silverlake Symmetri Retail Banking” was formerly known as SunGard Ambit Retail Banking
Silverlake Symmetri Customers
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Southeast Asia Middle East & Africa
Indian Subcontinent & Pakistan Europe
28% of FY14 revenue 20% of FY14 revenue
21% of FY14 revenue 29% of FY14 revenue
A Partial Customer Footprint
Silverlake Axis Digital Economy Solution
24*SCCIM: Silverlake Collaborative Capability and Intelligence Model
The Silverlake Collaborative Architecture (CORE + SCCIM) drives our industry and cross industry solution roadmap for digital economy enterprises
CORESolutions
Silverlake AxisIntegrated
Banking Solution (SIBS) Silverlake Axis
Integrated IslamicBanking Solution
(SIIBS)
Silverlake AxisIntegrated
Provident Fund System (SIPFS)
Silverlake AxisCard System
(SCS)
Silverlake SymmetriCore Banking
Silverlake Axis Retail Merchandising
System(PROFIT)
CORE IntegrationSIBS Delivery
Service Processor(DSP)
Enterprise to EnterpriseCollaboration (SCCIM*)
SIIBS DSP Complement
(DSP-C)
Omni Channel Services
SCCIM.OSSocial Network
Services
Technology Services
Industry Services
SCCIM.OS. Payment
SCCIM.OS. Data
Web ATM
Branch Teller & Sales
Loan Origination
Contact Centre
Collection
Self/ Kiosk Service
Customer Relationship Management
(CRM)
Internet Banking
Smart Mobile Banking
eWallet
Mobile Advertisement
Virtual Real Super Mall
Augmented Reality
GeoGate
ICMS Mobile
Mobile Loyalty Programme
Identity Access Management
Mobile Game
Mobile POS
NotificationMobile Alert
Offers
Mobile Stock Trading
Internet Mobile Convergence
Mobile Apps (iOS, Android, Windows, BB)
Smart Devices, Tablets and Web
Virtual Card
Online Share TradingPersonalization
eLoyalty
ePaymenteProcurement
Facebook Banking
eRemittanceP2P
Payment
Web POSPortals Express Banking
Silverlake Axis Insurance Solution
(MERIMEN)
Silverlake Axis Digital Economy Core Capabilities and Ecosystem Offerings
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Primary markets are Malaysia, Singapore and Indonesia with growing markets inThailand, Philippines and Vietnam
Over 115 insurers, encompassing most major international insurers and many bank-affiliated insurers, covering both conventional and takaful operators
Over 4,800 automobile workshops and repair centres
Over 25 major automobile brands
Over 470 loss adjusters and law firms
Over 1,950 insurance intermediaries
Insurance16 installations across the fastest growing markets in Asia: China, Malaysia, Philippines, Singapore, Thailand, Vietnam, Cambodia & Indonesia
Over 45,000 Suppliers
More than 350 Retail Outlets
RetailCore 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 SIBS
100% Successful Implementation Track In Over 200 Core Institution Migrations In Asia & Middle East
Banking
Fintech Strategy And Capabilities
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Co-CoreCo-Core complements our Core engine, allowing our customers to enhance and reinvent their digital experiences.
SolutioningWe aim to provide virtual layers of value to the physical layer, thus creating an Augmented Financial Reality.
BusinessesOur knowledge of finance and technology puts us in the forefront to collaborate and operate fintech businesses.
M&AWe continue to grow our offerings
through strategic partnerships, mergers and acquisitions, allowing us to tap into an ocean of opportunities.
EnablingWe bring together Core and
Co-Core capabilities to create and increase value for our
companies and customers, by helping them create their own
fintech environments.
CoreOur proven technology & business
insights enable our fintech core capabilities to grow and deepen,
while providing fundamental architectures for all businesses to
thrive.
115Insurers and
Takaful Operators
25Major
AutomobileBrands
4,800Repairers and
MotorFranchisers
470Loss Adjusters
andLaw firms
1950Insurance
Intermediaries
Thailand
PhilippinesMalaysia (HQ)
Singapore
Indonesia
Vietnam
Customer base comprising …
Hong KongChina
Merimen Group: One Key Investment in Insurance Ecosystem towards SAL’s Fintech Journey
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Who is ?
A leading software as a service provider of Insurance Claims Management and Underwriting platform in the Asia-Pacific region, with more than 15 years of Insurance Ecosystem experience since 2000
Q1 FY2017 Results Summary
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(RM Million) Q1 FY2017 Q1 FY2016 % change
Revenue 126.7 131.0 (3)
Gross Profit 73.6 78.6 (6)
Profit before tax 189.3 76.9 + 146
Income Tax (20.7) (8.3) + 150
Net Profit 168.6 68.6 + 146
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Q1 FY2017 Results Summary• Q1 FY2017 revenue was 3% lower due to lower contribution from software project
services, software licensing and sale of software and hardware products, partiallyoffset by an increase in revenue contribution from maintenance and enhancementservices, insurance processing and credit and cards processing.
• Significant increase in other income in Q1 FY2017 mainly due to the recognition of again of RM143.7m on disposal of 4.5m shares in GIT, partially offset with lowerunrealised foreign currency exchange gains in Q1 FY2017.
• Higher operating expenses due to consolidation of Symmetri Group, partially offset bya lower charge on share awards granted pursuant to Silverlake Axis Ltd PerformanceShare Plan.
• Higher income tax expense in Q1 FY2017 mainly due to the accruals of withholdingtax on proceeds from disposal of shares in GIT. Excluding the gain and tax expenseassociated with disposal of GIT shares, the effective tax rate decreased from 11% inQ1 FY2016 to 9% in Q1 FY2017.
• Achieved net profit of RM168.6m.
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Q1 FY2017 Revenue by Business Activities
% change + 27% (59%) (27%) + 19% + 13% (90%)
88.4
10.716.2
6.7 4.4 0.3
69.5
26.3 22.1
5.7 3.9 3.50
102030405060708090
100
Maintenance &Enhancement
Services
Software ProjectServices
Software Licensing InsuranceProcessing
Credit and CardsProcessing
Sale of Softwareand Hardware
Products
RM
' m
Q1 FY2017 Q1 FY2016
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Dividend(Singapore cents
per share)
First Interim
Second Interim
Third Interim Final Special Total
FY2013 0.5 0.7 0.8 1.1 - 3.1
FY2014 0.8 0.9 1.0 1.2 0.6 4.5
FY2015 0.8 1.1 1.1 1.21 - 4.2
FY2016 0.60 0.75 0.65 1.00 - 3.0
FY2017 0.52
1. Taking into account the dividend entitlement for bonus shares (1 for 5) issued on 8 July 2015, dividends were based on a larger base from Q4 FY2015 onwards.
2. The first interim dividend will be payable on 5 December 2016.
Dividend
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Balance Sheet(RM millions) 30 Sep 2016 30 Jun 2016CURRENT ASSETS 657.1 477.4- Trade and other receivables 144.71 177.8
- Cash and bank balances 427.92 225.9
NON-CURRENT ASSETS 337.3 356.0- Intangible assets 194.8 195.9
- Investments in associates 87.43 106.4
TOTAL ASSETS 994.4 833.4
CURRENT LIABILITIES 200.2 203.4- Trade and other payables 51.7 49.4
- Loans and borrowings 68.7 73.0
NON-CURRENT LIABILITIES 27.3 27.4SHAREHOLDERS’ EQUITY 766.9 602.6TOTAL LIABILITIES & EQUITY 994.4 833.41. Decrease in trade and other receivables as a result of improved timing of collection from customers.
2. Increase in cash and bank balances mainly due to proceeds from disposal of shares in an associate.3. From 20 Jul to 6 Sep 2016, the Company disposed 4.5 million GIT shares in several block trades on ChiNext, with a gain on
disposal of shares of RM143.7 million recognised under Other Income in the consolidation income statement for the financialquarter ended 30 Sep 2016. Consequently, the proportion of ownership interest held by the Company in GIT reduced to 16.67%as at 30 Sept 2016.
The Global FinTech Spend – In US$ Billions
$USD Millions
Source: IDC Financial Insights, 201635
Spending on Technology in Asian FSIs
7.0
2012
7.8
CAGR 2005 to 2008
6.5
2011
8.8
2013Average
2009 to 2010
4.9
6.6
2014 2015
6.96.1
2016
Source: IDC Financial Insights, 2016
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Dr Raymond KwongCEO & Group Managing DirectorSilverlake Axis Ltd [email protected]
Meeting request, please contact:Lee Teong SangMobile: +65 9633 [email protected]
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