Corporate Presentation - Silverlake Axis · functions. She has 25 years of experience in auditing...
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Corporate Presentation August 2017
Transcript of Corporate Presentation - Silverlake Axis · functions. She has 25 years of experience in auditing...
Corporate Presentation
August 2017
Disclaimer
This 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
Strong balance sheet with net cash of RM629.8 mil as of 30 June
2017
Revenue (FY2017)
Group revenue of RM506.4 milwith growing recurrent income segments which accounted for approximately 83% of total revenue in FY2017
Profit Margins
Strong EBITDA margin 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
Cu
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Cu
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me
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ela
tio
nsh
ip
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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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
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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FY2017 RevenueRM506.4 mil
Software Licensing RM26.8 m
5%
Maintenance & Enhancement
Services RM388.7 m
77%
Sale of Software & Hardware Products RM3.4 m
1%
Software Project Services RM39.1 m
8%
Credit and Cards Processing RM18.8 m
3%
Insurance Processing RM29.7 m
6% 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 20172003 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
2017 & 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 Economy
Solutions
Company
Digital Economy Transformation
Partnerships Across Asia and Beyond
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
Tan Soo ChengSenior EVP, Structured Services
Hoong Lai LingSenior EVP, Administration and Finance
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
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 14
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
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
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.
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.
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
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
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.
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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 information software products and integrated services in China.
• Offers cloud computing and data center solutions; and business consulting and information technology management services.
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• Listed on ChiNext of the Shenzhen Stock Exchange in May 2015
• Following the listing, SAL (via Silver Team Technology Limited) holds
27,000,000 GIT shares (approx. 20.01% of GIT total issued share
capital)
• At the end of the moratorium period, SAL announced on 1 June 2016
and 15 November 2016 that it may sell up to 8,000,000 (before
bonus) and 20,8000,000 of its GIT Shares within six-month period
from 24 June 2016 and 6 December 2016 respectively.
• On 26 Oct 2016 (book closure date), GIT has issued bonus shares of
49,500,000 to SAL pursuant to GIT’s 20161H profit distribution plan
by using its capital reserve to issue 22 new bonus shares for every 10
existing shares held by shareholders of GIT at book closure date
• On 25 November 2016, GIT issued shares of 2,784,000 to eligible
employees pursuant to GIT’s restricted employee shares incentive
plan
• On 19 December 2016, GIT issued 14,745,442 shares as part
consideration for acquisition of 100% equity interest in Shanghai
RuiMin Internet Technology Co. Ltd. (“RuiMin”). 3,639,215 new GIT
shares were also issued and placed out by GIT through private
placements
• On 29 March 2017, SAL ceased to have significant influence over
GIT and discontinued the use of equity accounting method. The
retained interest in GIT was recognised as Available-For-Sale
Financial Assets at fair value.
• As at 30 June 2017, our stake in GIT was 9.24%
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
23*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
CORE
Solutions
Silverlake Axis
Integrated
Banking Solution
(SIBS) Silverlake Axis
Integrated Islamic
Banking Solution
(SIIBS)
Silverlake Axis
Integrated
Provident Fund
System (SIPFS)
Silverlake Axis
Card System
(SCS)
Silverlake Symmetri
Core Banking
Silverlake Axis
Retail Merchandising
System
(PROFIT)
CORE Integration
SIBS Delivery Service Processor
(DSP)
Enterprise to Enterprise
Collaboration (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
Notification
Mobile 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
ePayment
eProcurement
Banking
eRemittance
P2P
Payment
Web POSPortalsExpress
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
Insurance
16 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
Retail
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 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
Philippines
Malaysia (HQ)
Singapore
Indonesia
Vietnam
Customer base comprising …
Hong Kong
China
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
FY2017 Results Summary
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(RM Million) FY2017 FY2016 % change
Revenue 506.4 636.3 (20)
Gross Profit 277.2 383.9 (28)
Other Income 807.9 19.7 + 4,001
Profit Before Tax
947.5 300.2 + 216
Income Tax (101.5) (26.4) + 285
Net Profit 846.0 273.8 + 209
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FY2017 Results Summary• Group revenue declined 20% to RM506.4m in FY2017
– lower contributions from project related revenue segments due to deferment andslowdown of customers’ capital expenditures
• Recurrent revenue segments continued to grow with moremaintenance and enhancement contracts secured and newcustomers acquired for insurance processing
• Significant increase in other income mainly due to:
– capital gain of RM480.4m from sale of 34.9m shares in GIT
– mark-to-market accounting gain of RM294.8m on the reclassification of theremaining interest in GIT from investment in associate to available-for-salefinancial assets
• Net profit for shareholders jumped 209% to RM846.0m
• Excluding gains and tax expenses associated with disposal of GITshares and mark-to-market accounting gain on the remaininginterest in GIT, the Group recorded a net profit of RM160.7m inFY2017
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FY2017 Revenue by Business Activities
% change
+ 12% (61%) (79%) + 18% (7%) (79%)
388.7
39.1 26.8 29.7 18.83.4
346.2
100.1127.9
25.2 20.1 16.7
0
50
100
150
200
250
300
350
400
450
Maintenance &
Enhancement
Services
Software Project
Services
Software Licensing Insurance
Processing
Credit and Cards
Processing
Sale of Software
and Hardware
Products
RM
'
m
FY2017 FY2016
31
Dividend(Singapore cents
per share)
First
Interim
Second
Interim
Third
InterimFinal 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 - 3.00
FY2017 0.50 0.70 0.70 0.302 2.302 4.50
1. 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 finalspecial dividend of 1.0 cents. The final dividend of 0.3 cents and final specialdividend of 1.0 cents will be payable on 17 November 2017.
Dividend
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Balance Sheet(RM millions) 30 Jun 2017 30 Jun 2016
CURRENT ASSETS 1,194.5 477.4
- Trade and other receivables 144.6 177.8
- Available-for-sale financial assets – quoted equity shares1 280.3 -
- Cash and bank balances2 720.7 225.9
NON-CURRENT ASSETS 246.8 356.0
- Investments in associates3 - 106.4
TOTAL ASSETS 1,441.3 833.4
CURRENT LIABILITIES 235.2 203.4
- Trade and other payables 66.3 49.4
- Loans and borrowings 89.3 73.0
NON-CURRENT LIABILITIES 48.1 27.4
TOTAL EQUITY 1,158.0 602.6
TOTAL LIABILITIES & EQUITY 1,441.3 833.4
1. Investment in quoted equity shares of GIT, recognised at fair value determined by reference to published price quotations inactive market
2. Increase in cash and bank balances mainly due to proceeds from disposal of shares in GIT.3. The Group ceased to have significant influence over GIT as at 31 March 2017 and discontinued the use of the equity accounting
method.
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240 250 261 273 286 299
93 96100
104108
11292
9598
102105
109
0
100
200
300
400
500
600
2015 2016 2017 2018 2019 2020
Banking Insurance Securities and Investment Services
Source: IDC Financial Insights Asia/Pacific, 2017
Worldwide FinTech Spending (US$ billion)
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
6.96.1
Source: IDC Financial Insights, 2017
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5.0
2014 2015 2016 2017
