1Q 2026 First Quarter Results Presentation

Good afternoon everyone. Before we begin, please be reminded to switch your mobile phone to Simon. Ladies and gentlemen, welcome to the annual journal meeting of IFAS Corporation.

The company is conducting this AGM physically and via live webcast by video or audio download. Thank you for your participation at this AGN. Let me do a quick introduction of the directors and colleagues who are seated here. The directors and management of the companies seated here with me are Mr. Mark Rudolph Duncan on my left. He is the lead independent director. Then we have Miss Cecilia Chu, Independent Director, Miss Temitam, Independent Director, Mr David Tho, Independent Director. On my right we have Lim Wieken, Independent Non-executive Director, We have John Paul, Executive Director and to the far right we have Terrence Lin, a group, CFO. Dr. Champion who is our independent director is joining us virtually at this AGM. Let's see here on the screen. Our company secretary, Ms. Chan Lai-Yin and the audit partner from KPMG, LLP and a scrutiny from Citadel Corp, Private Limited. the first presentation.

Before we proceed the business of EGM, our executive director, who is also the director of corporate

communication, John Paul Wong, will give a presentation, a group's business update for the first

quarter of 2026. Hi, everyone. Welcome to IFAW's EGM. I'll be running through the first quarter of 2026, results presentation deck. Let's start with a key summary. So the group began 2026 with a 44.5% year-on-year increase in total revenue, which stood at $154.5 million, while net profit grew 47.5% year-on-year to $28 million. The increase in our profitability was driven by growth in the Hong Kong e-pension business, as well as continuing growth in our co-wealth management business. For first quarter 2026, the group's EBITDA grew to $45.7 million. This is a 39.6% year-on-year growth. For our core wealth management business, our group's AUA increased 27.1% year-on-year to a new record high level of $32.6 billion. Growth was seen in all the various markets that we operate in, with Singapore continuing to be the main contributor. Despite volatility in our global markets, especially in March of this year, Group's net inflows in first quarter, 2026 was a healthy $1.25 billion.

Borrowing unforeseen circumstances, we expect 2026 to see healthy growth rates in revenues and profitability. For the overall Hong Kong business, which includes the e-pension as well as the wealth management business, the group is targeting double digit growth in revenues and profitability for 2026. The also pension administration business in Hong Kong is expected to start contributing in the second half of this year. IFAS Global Bank in the UK will be building on its milestone of a full year of profitability in 2025 and targets to continue to see robust growth rates in 2026 and beyond. For the first interim dividend for FY2026, the directors declared a dividend of 2.5 cents per ordinary share, which is higher than 1.6 cents per ordinary share for the same quarter last year. For FY2026, the directors expect to propose a total dividend of 10.5 cents per ordinary share or higher, which represents at least a 25% year-on-year increase. The Hong Kong e-pension business has been one of the important contributors to our revenue and profit in the last two years. But we see contributions from the Core Wealth Management Business and IFAS Global Bank to be the key revenue and profitability growth drivers in the next three to five years. As a global digital banking and world management platform, the group is increasingly looking to make progress with a truly global business model, which means attracting customers from all around the world while we operate from just a few key jurisdictions. Of particular significance will be our ability to leverage on our presence in Singapore, Hong Kong and London, which are seen as three of the top financial centers in the world. The group is targeting to achieve an AUA of $100 billion by 2030. This implies a compound annual growth rate or KEGG of 25.6% or higher over the next five years. If the net revenue margin on AUA is around 60 bps, net revenue, excluding EMPF project, will be approximately $600 million when the $100 billion AUA is achieved. The group is embracing AI to achieve our various objectives. While we have a lower group headcount in mind, we expect our overall group headcount to peak in the middle of this year and to be at a lower level at the end of 2028, even as we work on achieving our various objectives under the three-year plan. This will pave the way towards improving profit margins from 2027 onwards. On this slide, our usual AUA slide, so you can see group AUA increased 27.1% year-on-year to a record high level of $32.64 billion. Q on Q, AUA grew by 2.1%. The contribution from B to B is about 65%, and the contribution from our B to C business is about 35%. On the next slide, for the AUA breakdown by markets and products, so as you can see, Singapore continues to be the largest contributor at 69%, followed by Hong Kong and Malaysia, and others, which consists of China and UK, that proportion has been growing at a fairly fast clip over the last one year. In terms of EUA breakdown by products, so unit trust continue to be the core product at 55% contribution, followed by stocks and ETFs. This category of products has been growing at a faster clip as well compared to the other products over the last few quarters. And the EUA breakdown by products is followed by bonds 10.8% and cash account and deposits which include the UK bank's cash deposits that's at 8.7%.

On the next slide, our net inflows as I mentioned just now, so despite volatility linked to the war in Iran as well as skyrocketing all prices, net inflows have been strong and grew 33% year on year to 1.25 billion dollars. A very similar observation for our gross unit trust subscriptions which also grew very strongly year on year. So in first quarter 2026, unit trust subscription grew by 47% year on year to $3.33 billion. I'll now move on to the financial results in section one. So for first quarter 2026, total revenue grew by 44% year on year to $154.46 million. net revenue grew by 54.9% year-on-year to $104.9 million. OPEX grew by 59.7% year-on-year to $71.06 million. Net profit grew by 47.3% year-on-year to $28.05 million. Earnings per share grew by 44% year-on-year to $9.2 cents. The next slide shows the results overview for the last four financial years plus first quarter of this year. I'll move on to the next slide on the PBT margin, Profit Before Tax margin, which is based on our total net revenue for the group, which stood at 32% in first quarter of 2026. Return on equity at 26.8% for first quarter of this year. The next couple of slides show the profit and loss for our different markets at a geographical level. So for first quarter of 2026, as you can see, most of the markets saw strong growth year on year in their profits. So I think if you look at Singapore, Hong Kong, Malaysia, across those three markets, growth was relatively strong. China's losses have narrowed in first quarter of 2026. UK operations saw a decline year on year to 0.69 million dollars. And overall, at the group level, Net profit, as I mentioned just now, go to $28 million in first quarter of this year, which is 47% higher. The next slide shows the last four financial years and first quarter of this year. I will not run through the details here. The next slide on gross revenue based on the geographical segment breakdown, I think across the board for all the various markets, we saw pretty strong year-on-year growth in gross revenue for Singapore, Hong Kong, Malaysia, China and the UK. Quite a similar observation as well on the next slide for net revenue. The last couple of slides in this section talk about our dividend. So as I mentioned just now, 2.5 cents is what the board directors declared for first Q2026, the first interim dividend for this FY2026, which is 56% higher than the same period last year. The next slide shows the trend in the dividend payouts for the last four financial years, and also for this year. So as I mentioned just now, for FY2026, the board of directors expects to propose a total dividend of 10.5 cents per share, or higher, which is 25% higher at least compared to a year ago. I'll spend a bit more time on section two, which touches on our business updates.