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C O R P O R A T E
P R E S E N TAT I O N
February 2020
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 aboutfuture 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. Forwardlooking statements involve certain risks and uncertainties as they relate to future events. Actual results may varymaterially from those targeted, expected or projected due to various factors.
Potential risks and uncertainties include such factors as general economic conditions, foreign exchangefluctuations, interest rate charges and regulatory developments. Such factors that may affect the Group’sfuture financial results are detailed in our listing prospectus / circulars, listed in this presentation, or in themanagement discussion and analysis section of the company’s result report and filing with the SGX. The readeris cautioned to not unduly rely on these forward-looking statements. We do not undertake any duty to publishany update or revision of any forward looking statements.
The information contained in this presentation has not been independently verified. No representation orwarranty 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 Axisor any of its affiliates, advisers or representatives shall have any liability whatsoever for any loss arising, whetherdirectly 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 orsubscribe for shares in Silverlake Axis.
2
D I S C L A I M E R
AGENDA
BANKING
INSURTECH AND RETAIL
GROUP OVERVIEW
INVESTOR FACTSHEET
KEY FINANCIALS
3
T H I S I S O U R
F O U N D A T I O N
O U R
V I S I O NS E T S U S A PA R T
ASIA PACIFIC’S
LARGEST
DIGITAL ECONOMY
SOLUTIONS
COMPANY
OUR
TECHNOLOGIES
REFINED,
EXPANDED &
INNOVATED
TO BECOME
COMPUTING PRINCIPLES
GROUNDED ON
MATHEMATICAL MODELS
4
O U RM I S S I O N
CUSTOMERS
I N V E S T O R S E M P L O Y E E S
P A R T N E R S
TO BE THE
LEADING FINTECH
COMPANY
HIGHLY VALUED
BY CUSTOMERS &
PARTNERS
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“
”
To work collaboratively together
and deliver the best value of our
customers
“
”
To create an innovative &
entrepreneurial environment,
enr iched wi th diversi ty &
open communication
“
”
5
30 YEARS OF
MAKING
DIGITAL TRANSFORMATION
WORK
M A R K E TL E A D E R S H I P
6
100%
INDUSTRIES TRANSFORMEDBanking, Insurance, Retail, Government, Payments and Logistics Ecosystems
REGIONS COVEREDAsia Pacific, Europe, Middle East, Africa and Americas
CUSTOMER TRACK RECORD100% successful implementation of enterprise core software applications for over 380 customers
P R O D U C TE V O L U T I O N
C O L L A B O R AT I O N S W I T H
C U S T O M E R S & PA R T N E R S
N E W S O L U T I O N S
T H R O U G H R & D
I N D U S T R Y D I G I TA L
T R A N S F O R M AT I O N &
K N O W L E D G E S H A R I N G
N E W A C Q U I S I T I O N S &
PA R T N E R S H I P S
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
“
”
OUR SOLUTIONSGROWTH DRIVERS7
QR TechnologyNew Industry
(Retail)
Silverlake SolutionNew Product
(Maintenance & Enhancement)
2010
Symmetric Payments
& IntegrationNew Product
(Enterprise payment & integration)
2011
SAACIS* New Product
(SIBS)
2006
Merimen GroupNew Industry
(Insurance)
2013
Cyber VillageNew Product
(E-commerce marketplace )
2009
Silverlake JapanNew Geography & Product
(Card & Credit Processing in Japan)
BUSINESSE V O L U T I O NT 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
“
”
*Refers to Silverlake Adaptive Applications & Continuous Improvement Services Ltd8
Finzsoft SolutionsNew Geography
(Australia, New Zealand)
2014
Silverlake Symmetri
Retail BankingNew Geography
(Central Europe, EMEA, South Asia)
2015
SIA X InfotechNew Product
(Solutions for issuance
and verification of digital
identity documents and
smart cards)
2019
Silverlake DigitaleNew Product
(Payment solutions)
Silverlake Digital EconomyNew Product
(Digital banking)
2018
Silverlake One ParadigmNew Product
(Rules-based applications & tools)
PARTNERSHIP
E C O S Y S T E M
Primary markets are Malaysia, Singapore and Indonesia with growing markets in Thailand, Philippines, Vietnam, Hong Kong, & Japan
Over 150 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
INSURANCE20 installations across the fastest growing
markets in Asia: China, Malaysia, Singapore, Vietnam, Cambodia, Indonesia & Hong Kong
Over 40,000 Suppliers
More than 500 Retail Outlets
RETAILCore System Platform Partner of Choice for Top 3
of the 5 Largest ASEAN Financial Institutions
Geographical presence in Asia Pacific, Europe, Middle East, Africa and Americas
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
BANKING
Our core capabilities and ecosystem offerings
continuously enable and connect our ecosystem
partners to effectively run, grow & transform their business
“
”
9
O F I N C O M E B A S E
E X PA N S I O N
*Revenue in million RM
Our acquisitions not only
added depth and range
to the Group’s portfolio
of software solutions and
s e r v i c e s , b u t a l s o
broadened the Group’s
income base with new
revenue streams
“
”
10
F Y 2 0 0 5
REVENUE
F Y 2 0 1 9
REVENUE
F Y 2 0 0 8
REVENUE
RM27.8
RM146.9
RM680.8
O U RP E O P L E
STAFF CAPABILITYMore than 1,800 Competent Employees with Rich and In-depth Expertise from Diverse Backgrounds
KEY MANAGEMENT TEAMExperienced and Dynamic Management Team with Proven Track Record in Managing High Growth Companies
BOARD OF DIRECTORSForward-looking and Notable Board with Over 25 Years of Experience in Various Industries
Our founder, Mr. Goh
Peng Ooi continues to
drive the vision with the
Board and Management
“
”
AN EXPERIENCED &
HIGH PROFILE
LEADERSHIP BOARD
1,800EMPLOYEES
* LARGE & GROWING TALENT
POOL WITH RICH TECHNICAL
EXPERTISE -FROM
DEVELOPER, BUSINESS
ANALYST, PROJECT
MANAGEMENT, TECHNOLOGY
SALES TO SUPPORT OUR
CUSTOMERS
90% BUSINESS
OPERATIONS*>30 YEARS
IN INFORMATION
T E C H N O L O G Y
>25 YEARS
I N L E G A L
P R A C T I C E S
>30 YEARS
IN FINANCIAL
S E R V I C E S
CHAIRMAN OF
M U L T I P L E
F I N A N C I A L
INSTITUTES &
A D V I S O R Y
C O U N C I L S
>45 YEARS
OF EXTENSIVE
S E N I O R
MANAGEMENT
E X P E R I E N C E
11
41
5 6
2
7 8 9
1. Goh Peng Ooi2. Dr. Kwong Yong Sin3. Andrew Tan 4. Ong Kian Min5. Datuk Yvonne Chia
6. Professor Tan Sri Dato’ Dr. Lin See Yan (Resigned)7. Goh Shiou Ling8. Lim Kok Min9. Tan Sri. Dato’ Dr. Mohd Munir bin Abdul Majid10. See Chuang Thuan (not in pic)11. Yano Satoru (not in pic)
3
RECENT
A C H I E V E M E N T S
M E R I M E N G R O W S
I T S R E G I O N A L
I N S U R A N C E
P R E S E N C E &
E X P A N D I T S
TRUESIGHT SUITE
Q R R A W I N S
C O N T R A C T
W I T H A E O N
V I E T N A M &
E X P A N D I T S
C L O U D
CAPABILITIES
Jan 2019: In the 1st 6 months of FY2019, the Group has secured 8 contracts to
deliver innovative and transformative digital solutions to existing customers. S A L A C Q U I R E S
X I N F O T E C H
GROUP
May 2019: Merimen secured new customer account in
Japan for its flagship Merimen eClaims solution, thus
futher expanding its presence into a new market in Asia
12
Jan 2019: QRRA signed a software and
services contract with AEON Vietnam. To
provide application management services and
software maintenance support services to local
customers, QRRA also established QR Retail
Automation Vietnam Company Limited in
Nov 2018✓ Innovative payment solutions for 3 MAJOR FINANCIAL SERVICES GROUP
✓ Channel innovations for 2 FINANCIAL SERVICES PROVIDERS
✓ Services to support their digital banking and payments transformation
initiatives for 3 ESTABLISHED FINANCIAL INSTITUTIONS
Jun 2019: MSIG implements TrueSight Interactive
Video tool to brings convenience and speed to motor
claims process
Apr 2019: SAL completes acquisition of Xinfotech
Group to offer Digital Identity and Security
Technologies (see next slide for more details)
Sep 2018: QR Agoracloud Sdn Bhd
established to accelerate retail digital
innovation via cloud-based Software-as-a-
Service (SaaS) solution for retailers of all sizes.
S A L S E C U R E S SOFTWARE
UPGRADES & D I G I T A L
INNOVATION CONTRACTS
2H FY2019: Silverlake Symmetri secured 4 contracts to provide software upgrades,
implementation & maintenance services to its Core Banking and Card customers
✓ Core Banking Upgrade for AN ESTABLISHED PAKISTAN ISLAMIC BANK
✓ Extension of Core Banking Maintenance and implementation services for
A LEADING BANKING GROUPS IN CENTRAL EUROPECentral
Europe
✓ Upgrades of Silverlake Symmetri OmniCard Solution for a LARGE
BANK IN MALDIVES & A LEADING BANK IN PAKISTAN
Aug 2019: The Group secured 8 UPGRADES AND ENHANCEMENTS PROJECTS
TOTALLING APPROXIMATELY RM40 MILLION. These include a technology
refresh for Agrobank Malaysia and 3 Malaysian banks, 2 established financial
institutions in Singapore, a large bank in Indonesia and a bank in Thailand
RECENT
A C Q U I S I T I O NS I A X I N F O T E C H G R O U P
On 09 Nov 2018, the Group entered into a conditional sales and purchase
agreement to acquire 80% stake in SIA X Infotech Group (“XIT”) .
Consideration for 80% stake in XIT comprises an Initial Consideration of up to
EUR12.6m and an Earn-Out Consideration which is conditional on the undertaking
of IPO by XIT. The remaining 20% is to subject to conditional put and call options.
Rationale for Acquisition
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 XIT
Headquartered in Latvia with a
subsidiary in Kenya, XIT 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
13
Banking & Finance
✓ Mobile ID/Token (PKI)
✓ eKYC and Customer Onboarding (biometrics and PKI)
✓ Card Personalisation/Issuance (add-on to Silverlake cards and payment offering)
✓ National payment projects, eg. Kenya, Rwanda, Zimbabwe (white label from Russian company)
Government
✓ National ID (including Mobile ID)
✓ Passport
✓ PKI
✓ Driving License
✓ Social Cards
Government projects Banking projects Government & Banking projects
M A R K E TL E A D E R S H I P
I N D I G I T A L I D E N T I T Y
100+ projects in 45 countries
SIA X Infotech’s digital identity and security technologies are natural additions to the Group’s capabilities to accelerate digital enterprise transformation in areas such as customer onboarding, customer engagement, payments, anti-money laundering, fraud
prevention and cyber security ”
“
14
AGENDA
BANKING
INSURTECH AND RETAIL
GROUP OVERVIEW
INVESTOR FACTSHEET
KEY FINANCIALS
15
16
M A R K E TL E A D E R S H I P
I N B A N K I N G
EXCELLENT SOFTWARE CAPABILITY
Our core solutions handle ~300 million transactions daily* with 100%
successful execution
DIGITAL TRANSFORMATION ENABLEMENT
Banks achieve greater operational
efficiencies, quicker time to roll out new digital innovations
LONG-TERM VALUE CREATION
Our earliest customers have continued to grow with us
over the past 30 years
OVER 40% of the Top 20 Largest Banks in
South-east Asia Use Our Core Banking Solutions
Core System Platform Partner of Choice for
3 OF THE 5 SUPER REGIONAL Financial Institutions
C O R E S Y S T E M S A R E
USED AT GLOBAL SITES
*Estimation based on May 2019 peak transaction volume for financial and non-financial transactions
SIBSMegaCore
DSPMega
MÖBIUSCo-Core
Digital Banking and Open Banking
functions, omni channel design with newly
digitized STP service orchestration.
Integrated Application Manager
enables Core and Co-Core address
multi-dimensional digital economy
complexities
Proven, adaptive and comprehensive
universal banking solution delivering
future proofed architecture through
Industry-leading speed, scalable, reliable
and secure Core Platform
CIFDEP
LoansiPz
Retail Pymt
T$NInstitute
Pymt
NowSuite
STRAIGHT THROUGH BANKING (STB) PLATFORM
Delivering responsive digital customer experience with resilient, compliant and scalable
end to end banking platform
17
• Personalized Customer Experience• New Customer Propositions• Speed to Market Change• Product / Pricing Innovation
1
2
3
4
5
6
7
8
Universal Banking SolutionIslamic & Conventional, Mass & Corporate
Optimum PerformanceCore Banking 6000 TPS benchmark, Digital Banking Scalable by Cloud
Better Customer PropositionsPersonalized UIs, responsive service access, STP fulfilment with better TATs
Open Banking Private and Open APIs for new bank eco-systems and regulation
Cash Management EnabledTotal cash and liquidity management
Access ManagementRoles-based access, single sign-on, multiple authentication methods
Configurable Customer Experience, Dashboards, Rules, Work-flows and Reporting
Advanced Product DeliveryProduct Factory, Bundling, Campaign, Pricing, for Speed to Market
• Cost Optimized Operating Models• New Bank Eco-Systems• High Availability and Thruput• Global Business Expansion
O u r D e l i v e r e d Va l u e To B a n k :
18
S T B
VA L U E P R O P O S I T I O N
BANKINGMARKET TRENDS
Innovation budgets are splitbetween both non-IT objectives & technology solutions
Priority target is on existing operations to holistically transform businesses
Banks are more experienced, investing into scalable technologies
19Source: IDC Financial Insights, 2019 20132012 2014 2015 2016 20182017 2019 2020 20212011
7.0
6.5
8.8
6.66.9
6.1 4.5
5.8 6.06.1
Annual
CAGR
TECH SPENDING
BY ASIAN
FINANCIAL
INSTITUTIONS IS
RISING AGAIN
6.5
LEANER &
TARGETED
20
B A N K I N G &
R E C E N T W I N S
8 Software
Upgrades and
Enhancements
Projects TOTALLING
APPROXIMATELY
RM40 MILLION
Q1 FY20
These include a technology refresh for Agrobank
Malaysia and 3 Malaysian banks, 2 established financial institutions in Singapore, a large bank in Indonesia and
a bank in Thailand
In Q1 of FY2020 & 2H of FY2019, the Group secured 6
new contracts to prov ide sof tware upgrades,
implementation and maintenance services to customers.
These contracts are expected to contribute positively to
Group’s results in the current and following financial years
“
”FINANCIAL SERVICES
2H FY19
Core Banking Upgrade
for AN ESTABLISHED
PAKISTAN ISLAMIC
BANK
OmniCard Upgrades
for A LARGE BANK
IN MALDIVES
Core Banking Maintenance
& Implementation Services
for A LEADING CENTRAL
EUROPEAN BANKING
GROUP
OmniCard Upgrades
for A LEADING BANK
IN PAKISTAN
Silverlake Symmetri Secures Four Software
Upgrade Contracts.
Project Services
Cu
sto
me
r V
alu
e a
nd
Re
ve
nu
e P
er
Cu
sto
me
r R
ela
tio
nsh
ip
Time
Initial Software License
Additional Revenue from
Upgrade &
Expansion
License
Project Services
Maintenance & Enhancement
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
“
”
21
Maintenance &
Enhancement
B A N K I N GB U S I N E S SM O D E L
AGENDA
GROUP OVERVIEW
INVESTOR FACTSHEET
KEY FINANCIALS
INSURTECH & RETAIL
BANKING
22
Thailand (2015)
Philippines(2016)
Malaysia (HQ)(2000)
Singapore(2006)
Indonesia (2006)
Vietnam(2016)
Hong Kong(2017)
China(2018)
23
U S E D B Y
ALLI N S U R E R S
M A R K E TL E A D E R S H I P
I N I N S U R A N C E
Insurers &Takaful Operators
150Repairers &
Motor Franchisers
5,000Major Automobile
Brands
25Loss Adjusters &
Law Firms
250Insurance
Intermediaries
2,000
REGIONAL PARTNERS
A S I A’ S TO P I N S U R A N C E
S O F T W A R E - A S - A - S E R V I C E
( S A A S ) C O M PA N Y
FA C I L I TAT E I N S U R A N C E
T R A N S A C T I O N S W O R T H
3 B I L L I O N U S $ Y E A R LY
M O R E T H A N 1 9 Y E A R S O F S E C T O R - S P E C I F I C
E X P E R I E N C E S
Japan(2019)
INSURANCE ECOSYSTEM PARTNERS
▪ Workflow & notifications !▪ Document, Email system
within the ecosystem
Insured
Garage
Parts Supplier
Insurer
Lawyer
Surveyor
Industry Data Management
CallCenter
!!
!
!
!
!
!
CLAIMS COST CONTROL
15% of claims
assessed are suspicious or invalid, reducing claims paid
INCREASE CUSTOMER
SATISFACTION
78% reduction in
processing time, so customers get their claims done faster
TRACK & IMPROVE
PERFORMANCE
Enable average claims staff to handle
2.5x more claims
eClaimsMotor
Providing a common information exchange & collaborative
platform across all parties in claims processing
Source: Merimen Customer Data24
BENEFITS ACHIEVED
MERIMENC A S E S T U D Y
F O R M O T O R C L A I M S
A suite of insurance-domain specific and
integrated AI & analytics tools
Machine-assisted
Decisioning
PeerIndex
Telematics & Video
Analytics
RegionalDashboards
AndMany More
…
A.I. Fraud Detection
Illustration Of TrueSight’s
AI-assisted Decisioning
CLAIM
NOAI RECOMMENDS REASONS WHY
100 Accept claim(but pay 20% less)
Repair cost quoted is inflated higher than
average market rates
101 Reject claim 99% of similar claims are fraudulent
102 Investigate claim 80% of similar claims are invalid
25
MERIMENS O L U T I O N S
F O R D A T A A N A L Y T I C S
Ecosystem Transaction Fees
Insurers' Transaction Fees
Ecosystem Subscription
Insurers' Subscription
SUB
SCR
IPTI
ON
S T R O N G R E V E N U E
T I E D T O G R O W T H
S T I C K Y I N C O M E I N
A N E C O S Y S T E M
S T A B L E I N C O M E W I T H
L O W C H U R N R A T E
To
tal
Re
ve
nu
e
PER
TR
AN
SAC
TIO
N F
EE
InsurerEcosystem Partners*
Insurer
Customer Base
BENEFITS OF SAAS MODEL &
ECOSYSTEM PARTNERSHIP
Merimen capitalises on the
strong insurance ecosystem
and SaaS model that brings
recurr ing i ncome an d
growing revenue that is tied
to cus tomers ’ success
“
”
MERIMENB U S I N E S SM O D E L
*Ecosystem refers to agent, brokers, surveyors, lawyers, repairers, parts suppliers 26
FERMION
I N S U R T E C HE C O S Y S T E M P L A T F O R M
27
Launched on 28 February 2019, Fermion is Silverlake Axis’ Insurtech
Ecosystem Platform and is the Amalgamation of Merimen’s Capabilities
and Cyber Village’s Strengths. Fermion acts as an ‘Orchestrator' to
seamlessly connect Ecosystem Partners/Participants and offers
complementary services across the Insurance Value Chain
“
”
Bancassurance
AI Decisioning /Data intelligence
Financial advisory &services
Multi vendor collaboration
Channels & Distribution
IoT / Cloud platform
Telecommunications / connectivity
Customer onboarding
Hospitals & Healthcare institutions
Insurance Intermediaries, workshops and repair centres & automobile brands
150Banks &
Financial institutions
Insurance, takaful operators & associations
7000+90+
9
ASEAN 1st InsurtechEcosystem Platform
Countries Footprint8
28
M A R K E TL E A D E R S H I P
I N R E T A I L T E C H
C O M P L E T E E N D - TO - E N D R E TA I L
A U TO M AT I O N S O L U T I O N F O R
GLOBAL RETAILERS
Malaysia (HQ)
Singapore
Vietnam
China
Retail InstallationsAcross the Region
20Suppliers Using
the System
40,000Retail Outlets
Covered
500
QRRA RETAIL ECOSYSTEM
OVER 27 YEARS O F E X P E R I E N C E
W I T H P R O V E N T R A C K R E C O R D I N
R E TA I L E N T E R P R I S E S O L U T I O N S
Indonesia
Cambodia
Hong Kong
29Source: IDC Worldwide Semiannual Industry Cloud Tracker, 2018 H1 (December 14, 2018)
CLOUD, AS
THE
CATALYST OF
GROW &
INNOVATION
IN RETAIL
Q R R AM A R K E T T R E N D
I N R E T A I L T E C H
Worldwide Industry Cloud Spending in 2018 and Growth for 2019(US$ Billion)
* Note: All figures are forecast estimates.
To enable our retail customers to
drive their retail innovation, we have
ventured into cloud–based digital
platform, QR Agora Cloud, to
provide greater control & flexibility
“
”
Q R R A’ s
R E C E N T W I N
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
“
”
30
AGENDA
GROUP OVERVIEW
INVESTOR FACTSHEET
KEY FINANCIALS
INSURTECH & RETAIL
BANKING
31
F I N A N C I A L
H I G H L I G H T S
(RM million) Q2 FY2020 Q2 FY2019 % CHANGE
Revenue 190.7 169.0 +13
Gross Profit 116.2 108.1 +8
Other Income 6.5 12.7 -49
EBITDA 92.3 91.8 +1
Profit Before Tax 76.0 80.6 -6
Net Profit 52.8 67.5 -22
32
Q 2 F Y 2 0 2 0 R E S U LT S S U M M A R Y
F I N A N C I A L
H I G H L I G H T S
(RM million) 1H FY2020 1H FY2019 % CHANGE
Revenue 355.5 336.2 +6
Gross Profit 221.6 213.0 +4
Other Income 7.6 12.4 -39
EBITDA 164.9 170.6 -3
Profit Before Tax 132.8 148.0 -10
Net Profit 100.0 125.5 -20
33
1 H F Y 2 0 2 0 R E S U LT S S U M M A R Y
• Group revenue rose 13% to RM190.7m in Q2 FY2020, with growth from recurring revenue segments
and sale of software and hardware products• Revenue from maintenance & enhancement services rose 4% on new contracts
• Software-as-a-Service for insurance processing revenue grew 24% on new pricing structure as well as new
products and services in selected markets
• Sale of software and hardware products rose significantly to RM18.7m on new contracts from banks
• Gross profit margin eased to 61% due to a change in the revenue mix
• Other Income fell without one-off gain, selling and distribution costs, administrative expenses and
finance costs were higher
• Group EBITDA maintained at RM92.3m
• Group effective tax rate higher due to higher taxable income of certain subsidiaries, expiry of pioneer
status of a Malaysian subsidiary during Q1 FY2020 and higher withholding tax on overseas revenue
• Net profit attributable to shareholders declined 22% to RM52.8m in Q2 FY2020
F I N A N C I A L
H I G H L I G H T S
34
0.6 2.78.0
0.0
19.0 19.7
118.9
18.7
1.510.0
0.1
13.623.1
123.7
Sale ofSoftware
andHardwareProducts
Creditand
CardsProcessing
Software-as-a-
Service- Insuranceprocessing
Software-as-a-
Service- Retail
SoftwareProject
Services
SoftwareLicensing
Maintenance&
EnhancementServices
Q2 FY2019 Q2 FY2020
Q 2 F Y 2 0 2 0
R E V E N U E
B Y B U S I N E S S A C T I V I T I E S
35
+ 2,802%-43% + 24%
-28%+ 17%
+4%
Recurring revenue from maintenance &
enhancement services and Software-as-a-Service
for insurance processing recorded good growth in
Q2 FY2020
+ 100%
0.8 8.0 16.00
48.5 45.2
217.6
20.43.1
19.70.2
33.142.6
236.5
Sale ofSoftware
andHardwareProducts
Creditand
CardsProcessing
Software-as-a-
Service- Insuranceprocessing
Software-as-a-
Service- Retail
SoftwareProject
Services
SoftwareLicensing
Maintenance&
EnhancementServices
1H FY2019 1H FY2020
1 H F Y 2 0 2 0
R E V E N U E
B Y B U S I N E S S A C T I V I T I E S
36
+ 2,356%-62% + 23%
-32%-6%
+9%
Recurring revenue from maintenance &
enhancement services and Software-as-a-Service
for insurance processing recorded good growth in
1H FY2020
+ 100%
DIVIDEND`FIRST
INTERIM
SECOND
INTERIM
THIRD
INTERIMFINAL SPECIAL TOTAL
FY2015 0.80 1.10 1.10 1.201 - 4.20
FY2016 0.60 0.75 0.65 1.00 - 3.00
FY2017 0.50 0.70 0.70 0.30 2.302 4.50
FY2018 0.30 0.30 0.30 0.30 1.803 3.00
FY2019 0.30 0.40 0.40 0.70 - 1.80
FY2020 0.30 0.304
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 Q4FY2015 onwards.
2. Consists of interim special dividend of 1.3 cents paid on 28 July 2017 and final special dividend of 1.0 cents paid on 17 November 2017.3. 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 2018.4. Second interim dividend will be payable on 6 March 2020.
*Dividend in Singapore cents per share
D I V I D E N D
F Y 2 0 2 0
37
Total cumulative dividends paid since FY2003 amounted to RM2.10 billion.
(RM MILLION) 31 DEC 2019 30 JUN 2019
CURRENT ASSETS 898.2 841.9
Trade And Other Receivables 167.7 134.3
Financial Assets At Fair Value Through Other Comprehensive Income- Quoted Equity Shares1 228.1 172.1
Cash And Bank Balances 446.3 442.0
NON-CURRENT ASSETS 375.6 340.4
TOTAL ASSETS 1,273.8 1,182.3
CURRENT LIABILITIES 439.8 222.3
Trade And Other Payables 319.8 70.7
Loans And Borrowings 9.3 11.3
NON-CURRENT LIABILITIES 194.5 367.7
Other Payables2 - 248.5
TOTAL EQUITY 639.5 592.3
TOTAL LIABILITIES & EQUITY 1,273.8 1,182.3
38
S TAT E M E N T O F
F I N A N C I A L P O S I T I O N
1. Investment in quoted equity shares of GIT & Finzsoft, recognised at fair value determined by reference to published price quotations in active market2. Contingent consideration payable for the acquisition of SIL Group transferred to Current Liabilities
AGENDA
GROUP OVERVIEW
INVESTOR FACTSHEET
INSURTECH & RETAIL
BANKING
KEY FINANCIALS
39
I N V E S T O R F A C T S H E E T
C O M P A N Y O V E R V I E W Q U A R T E R LY F I N A N C I A L H I G H L I G H T S
I R C O N T A C T 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 Banking, Insurance, Retail, Government, Payment and Logistics Ecosystems.
RM
190.7m
RM
52.8mLee Teong Sang
Anil Singh Gill
investor.relations@silverlakeaxis.com
Q U I C K F A C T S
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 380
customers
Strong financial position with net cash of RM311.9 mil as of 31
December 2019
Core system platform partner of choice for 3 of the 5 largest ASEAN super regional financial
institutions
S H A R E I N F O ( a s a t 7 F e b 2 0 2 0 )
No. of shares 2.65 b
Market Cap S$989 m
Earnings/share(31 Dec 2019)
3.78 (RM sen)
Dividend/share(Q2 FY2020)
0.30 (S$ cent)
$0.375 (5CP.SI)
Financial Year Ended 30 June(RM‘m)
2019 2018
Revenue 680.8 541.8
Gross Profit 426.1 304.9
Net Profit 245.6 134.1
Total Assets 1,182.3 1,007.3
Total Liabilities 590.0 484.1
Gross Profit Margin (%) 63% 56%
Net Profit Margin (%) 36% 25%
Return on Equity (%) 41% 26%
Q 2 F Y 2 0 2 0
G R O U P
R E V E N U E
Q 2 F Y 2 0 2 0
G R O U P
P R O F I T
Asia Pacific, Europe, Middle East, Africa and Americas
Maintenance and Enhancement Services, 123.7
Software Licensing, 23.1
Sale of Software and Hardware Products, 18.7
Software Project Services, 13.6
Software-as-a-Service - Insurance Processing, 10.0
Credit and Cards Processing, 1.5
Software-as-a-Service - Retail, 0.1
0.0
50.0
100.0
150.0
200.0Revenue by Business Activities (RM’m)RM ‘m
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