Mongolia Growth Group Ltd. · TSXV:YAK.H
Mongolia Growth — Investor Presentation (April 2015)
36 slides from Mongolia Growth's investor presentation, Apr 20, 2015
Slide 1: MGG Corporate Update
MGG Corporate Update April 20, 2015
Slide 2: Forward Looking Statement
Forward Looking Statement Caution Regarding Forward-Looking Information This presentation contains statements that, to the extent that they are not historical fact, may Forward-looking statements involve significant risks, uncertainties and assumptions. Many factors constitute "forward-looking infor
Slide 3: A Liquid and Transparent Way to Invest in Mongolia's Growth
A Liquid and Transparent Way to Invest in Mongolia’s Growth... 3
Slide 4: Real Estate: Two Major Trends in a Growing Economy
Real Estate Two Major Trends in a Growing Economy Rents Up Cap Rates Down Cap Rates Decrease Rents Increase (Increased Capital (GDP Drives Rents) Availability) LEADS TO PRICE APPRECIATION 4
Slide 5: Trillions in Resources / 3 Million People
$Trillions In 3 Million Resources / People = Explosive Property Price Appreciation
Slide 6: Astana - Kazakhstan
Astana - Kazakhstan “With the second highest per capita GDP in the former Soviet Union, Kazakhstan is the obvious franchising leader in Central Asia and is poised to replicate the retail and franchising boom that Russia has experienced over the last decade.” ~ USA.gov 1991 2015 BEFORE AFTER 6
Slide 7: Doha - Qatar
Doha - Qatar “Consumers in Qatar have the highest disposable income in the world, driving consumption and demand for retail space.” ~ DTZ 1980 2015 BEFORE AFTER 7
Slide 8: Abu Dhabi - UAE
Abu Dhabi - UAE “The amount of retail space in Abu Dhabi will double to 1.8 million sq. meters by 2015” ~ Cushman & Wakefield 1960s 1954 2015 2011 BEFORE AFTER 8
Slide 9: Kuwait City - Kuwait
Kuwait City - Kuwait “International brands are popular in Kuwait. Unlike other GCC countries, fashion sales are not driven by expatriates, but by locals with a lot of disposable income” ~ AT Kearny 1961 2015 BEFORE AFTER 9
Slide 10: Ulaanbaatar - Mongolia: A Unique Opportunity
Ulaanbaatar - Mongolia A Unique Opportunity The majority of all commercial activity is centered on 3km of Peace Avenue 10
Slide 11: World's Most Expensive High Street Retail
World’s Most Expensive High Street Retail Hong Kong New York Paris Tokyo Sydney London Zurich Seoul Beverly Hills Brisbane Chicago San Francisco Sao Paulo Moscow Beijing Singapore Kuala Lumpur Toronto Tel Aviv Kiev Bogota Istanbul Taipei Ho Chi Minh City Beirut Luxemburg Jenusalem Warsaw Almaty Jaka
Slide 12: Key Economic Statistics
xy TAI AAH) pl | [ATH XY8: SHOPPING MI OPENING H' JIABAA =] 1-2 JABXAP MOND¢ LEVEL 1-2 ( 3 JABXAP LEVEL 3 GROWTH GROUP
Slide 13: One of the Fastest Growing Economies
One of the Fastest Growing Economies* 20" 17.5" 18" 16" 14" 12.8" 12.2" 12.0" 12.4" 12" 10.6" US$ bln 10" 8.9" 8.8" 7.8" 8" 6.4" 6.9" 6" 5.3" 3.9" 3.9" 4" 3.0" 2" 0.2" 0" 2008" 2009" 2010" 2011" 2012" 2013" 2014" 2015" *Data from the National Statistical Office Of Mongolia. 2015 is estimated GDP gro
Slide 14: Outperforming Popular Emerging Markets In 2014
Business Conditions Improving The World Bank Ease Of Doing Business Survey 2011 – 2015* 160 160 142 Outperforming Popular Emerging Markets In 2014 Annual Doing Business Rankings For Mongolia 140 140 Improve 120 d 17 Ra 120 nkings 120 100 100 95 89 86 90 76 78 80 70 72 80 60 60 40 40 20 20 0 0 2011 2
Slide 15: International Brands Continue to Enter the Market
International Brands Continue to Enter the Market Market Entrants Since 2013 15
Slide 16: Portfolio Highlights
MoNnGotia PORTFOLIO HIGHLIGHTS GROWTH GROUP
Slide 17: Property Portfolio
Property Portfolio Property Portfolio At Cost*^ 6% 25% Retail Office Development Pipeline Held For Sale 48% 21% *Measured as a percentage of historical Canadian Dollar cost as of year-end 2014 ^Management notes that the development pipeline produces negligible revenue and is held for 17 appreciation
Slide 18: Strong Comparable Rental Growth
Strong Comparable* Rental Growth 50% 45% 40% 35% 30% Comp Revenue 25% 20% 15% New Foreign Investment 10% Law Passed 5% 0% Jan 2013 Mar 2013 Apr 2013 May 2013 Jun 2013 July 2013 Aug 2013 Sept 2013 Oct 2013 Nov 2013 Dec 2013 Jul 2014 Jan 2015 Feb 2013 Feb 2015 Jan 2014 Jun 2014 Aug 2014 Sep 2014 Nov 2
Slide 19: Continued Rental Growth
Continued Rental Growth 45,000 Average Portfolio Rents Per Meter* 40,000 35,000 30,000 MNT Per Month 25,000 20,000 15,000 10,000 5,000 - Jan-12 Feb-12 Mar-12 Apr-12 12-May Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 Jan-13 Feb-13 Mar-13 Apr-13 13-May Jun-13 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 De
Slide 20: Occupancy Has Remained High
Occupancy Rate 0% 20% 40% 60% 80% 100% 120% Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13 Oct-13 Primary Street Retail Nov-13 Dec-13 *Calculated by dividing occupied meters by available meters in the core portfolio. Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Office Space Jul-14 Aug-1
Slide 21: Our Institutional Property Management Platform
OUR INSTITUTIONAL PROPERTY MANAGEMENT PLATFORM
Slide 22: Professional Team in Mongolia
Professional Team in Mongolia Tsolmon Davaadorj Talha Siddiqui Bayar Zorigt Director of Acquisitions Financial Controller Director of Development Stanson Dobbs Anar Asai Senior Manager of Internal Controls and Analysis Head of Sales and Leasing 22
Slide 23: Experienced Board of Directors
Experienced Board of Directors Harris Kupperman Nick Cousyn Jim Dwyer Chairman & CEO Director Director Brad Farquhar Robert Scott Byambaa Losolsuren Director Director Director 23
Slide 24: The Core Team Has Been Hired
The Core Team Has Been Hired Total Employees 50 45 40 35 30 Employees 25 20 15 10 5 0 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2011 2012 2012 2012 2012 2013 2013 2013 2013 2014 2014 2014 2014 2015 Corporate Property Management Facilities Support Personnel Excludes Former Employees From Mandal Daatg
Slide 25: Some of Our Valued Tenants
Some of Our Valued Tenants PERMASTEELISA MONGOLIA LLC 25
Slide 26: Future Growth Plans
MONGOLIA FUTURE GROWTH PLANS GROWTH GROUP
Slide 27: Where We Want To Be
Where We Want To Be Current Future Leverage Existing Capability Into Higher Returns On Capital Utilize Outside Capital On Our MGG MGG Projects To Increase Returns To MGG Earn Stable Fee Based Revenue Asset Property Assets Management & Development Company Increase Revenue And Earnings Without A Sizab
Slide 28: Tuguldur Shopping Center Stage 1 - Before
TUGULDUR SHOPPING CENTER Stage 1 BEFORE 28
Slide 29: Tuguldur Shopping Center Stage 1 - After
TUGULDUR SHOPPING CENTER Stage 1 AFTER 29
Slide 30: Tuguldur Shopping Center Stage 2
TUGULDUR SHOPPING CENTER Stage 2 Will Add Approximately 7,000 Square Meters Of Space Construction Start Date Targeted For Summer 2015 30
Slide 31: Why Invest Now?
Monco.ia Why Invest Now? GROWTH GROUP
Slide 32: Current Valuation is Attractive
Current Valuation is Attractive 1.43 1.50 1.03 1.00 $CDN 0.50 0.00 April 14 2015 Closing Price 3rd Quarter 2014 Tangible Book Value Per Share 32
Slide 33: Uniquely Positioned For Future Growth
Uniquely Positioned For Future Growth § Publicly Traded In North America (YAK-Canada & MNGGF-USA) § Built The Only Institutional Property Management Platform In Mongolia § Acquired One Of The Most Attractive Development Pipelines In Ulaanbaatar § Conservative Balance Sheet With Zero Debt And CDN
Slide 34: Goals For 2015
Goals For 2015 § Dramatically Reduce Costs As Part Of Management Overhaul § Advance 3rd Party Initiatives § Secure Funding And Begin Tuguldur Stage 2 Construction § Run-Rate Cash Flow Positive By Year-End 2015 34
Slide 35: Final Thought: What Will Happen When Oyu Tolgoi Stage 2 Is Approved?
Final Thought On July 16, 2009, Over the next 19 Parliament months, the MSE authorized the government to Top 20 appreciated finalize the Oyu by over 6-fold Tolgoi Investment Agreement What Will Happen When Oyu Tolgoi Stage 2 Is Approved? 35
Slide 36: Thank You
Thank You For more information please visit: www.MongoliaGrowthGroup.com or contact: Info@MongoliaGrowthGroup.com 36
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