Yoma Strategic Holdings Ltd. · SGX:Z59
Yoma Strategic — Investor Presentation (October 2014)
49 slides from Yoma Strategic's investor presentation, October 2014
Slide 1: Corporate Presentation October 2014
CORPORATE PRESENTATION OCTOBER 2014
Slide 2: Disclaimer
DISCLAIMER The material presented herein is for your general information only and nothing herein shall be considered to be business or legal advice. No representation, warranty or recommendation whatsoever as to the merits of investing in any company, entity or financial instrument is to be read or
Slide 3: Agenda
AGENDA Myanmar Overview Group Overview Real Estate Recent Developments Financial Highlights Capital Management Questions & Answers 3
Slide 4: Myanmar Overview
MYANMAR OVERVIEW
Slide 5: Myanmar Overview
KACHIN STATE laying BANGLADESH aunggyi THAILAND ‘GURMA) Burma Administrative Divisions ‘sual pana ‘The US Government s English convent Intemational boundary Division (taing) of Boundary National capital Division or state capital
Slide 6: Myanmar's Natural Resources
MYANMAR OVERVIEW Myanmar’s Natural Resources New Oil & Gas Blocks New Oil & Gas Blocks Stratfor, 2013 MOGE,2011 6
Slide 7: Country's Brief History
MYANMAR OVERVIEW Country’s Brief History 12th Century – Hub for Theravada Buddhism Throughout Asia 1824 -1948 – British Colonial 1948 - 1962 – Union of Burma 1962 – 1988 – Socialist Republic 1988 – 2010 - Union of Myanmar 2010 – Today - ‘Elections’, President Thein Sein December 2015 –
Slide 8: Myanmar's Rich Past
MYANMAR’S RICH PAST Population 51 million Major trading partners include Thailand, India, China and Japan Accounts for 90% of the world’s jade production Largest rice exporter in the world before 1962 46th country worldwide of proven gas reserves 25th largest endowment of arable land On
Slide 9: GDP Growth
GDP GROWTH % 9 8.3 8 7.3 7.5 • Assumed leadership 7 of ASEAN • Aung San Suu • Thilawa SEZ 5.9 Kyi took her seat began 6 Under military rule in Parliament implementation • US President • World Bank 5 Obama became provided loan 5.3 • President Thein package to Sein assumed the first sitting 5.1 Americ
Slide 10: Recent Key Developments
RECENT KEY DEVELOPMENTS Award of two mobile phone licenses: Ooredoo and Telenor – Today <10% mobile penetration – Targeting 80% by 2016 – ‘Leapfrog’ to 4G network Award of 20 offshore oil and gas exploration licences – Chevron, ConcocoPhillips/Statoil, BG Group, Shell, Total 9 banks received f
Slide 11: Myanmar Today
MYANMAR OVERVIEW MYANMAR TODAY… Population 51 million GDP Per Capita US$ 1,600 % of people living 13% in large cities Source: Myanmar Census 2014, Department of Population McKinsey Global Institute, June 2013, 11
Slide 12: Myanmar Today and in 2030
MYANMAR OVERVIEW MYANMAR TODAY… IN 2030… Population 51 million 61 million1 GDP Per Capita US$ 1,600 5,100 % of people living 13% 25% in large cities Source: Myanmar Census 2014, Department of Population McKinsey Global Institute, June 2013, & company info 1 Average annual rate of 0.9% growth project
Slide 13: Group Overview
GROUP OVERVIEW
Slide 14: Group Overview
GROUP OVERVIEW SPA (Hong Kong) founded by Serge Pun in 1981 – Real estate developments in Hong Kong, China and Thailand FMI established in Myanmar in 1992 – FMI City, Yangon first gated community – > 30 companies in multiple industries ( Real Estate, Agriculture, Automotive, Financial, etc) Yo
Slide 15: Group Structure
GROUP STRUCTURE Leading Conglomerate in Myanmar >20 YEARS OF EXPERIENCE OF OPERATING IN MYANMAR >20 COMPANIES IN MYANMAR Partnership “Public” company in Myanmar Listed Company on SGX ACCESS TO CAPITAL LOCAL TRACK RECORD (Financial and Human capital) STRONG LOCAL KNOWLEDGE INTERNATIONAL PRESENCE 15
Slide 16: Company Strategy
COMPANY STRATEGY Real Estate Investments (including Agriculture Luxury Automotive Retail/F&B (Telecoms, Construction and & Logistic Tourism Elevator) Education) Expand existing businesses Conglomerate approach to build a diversified portfolio of businesses in Myanmar Target - 50% of the business to
Slide 17: Real Estate
REAL ESTATE
Slide 18: Real Estate
REAL ESTATE Supply/demand mismatch driving positive pricing environment New supply planned - but still falls short of demand High occupancies for most sectors Property market still largely dominated by local developers Likely future developments Mortgages Condominium law to allow forei
Slide 19: Building Communities within Communities
REAL ESTATE Building communities within communities FMI City Pun Hlaing Golf Estate Sales commenced 1995, nearly Completed Sales commenced 2002, 10-15 more years Star City Sales commenced 2012, 8-10 more years 19
Slide 20: Real Estate Strategy
REAL ESTATE STRATEGY Historical business model – Sales of plots of land Current business model – Sales of completed residences Future business model – Mixture of sales and recurring rental income (PHGE Building G, Star City Building A5, Landmark development) 20
Slide 21: FMI City
FMI CITY Myanmar’s first gated community, complete with its own sports and recreation centre, supermarket and wet market, bank and food stalls. Situated on 465 acres of land, it is nine miles from the centre of Yangon and two miles from Yangon International Airport. Sales of Properties Economic be
Slide 22: Pun Hlaing Golf Estate
PUN HLAING GOLF ESTATE Lakeview Apartments Blocks A to F fully sold; Block G retained for rental Bamboo Grove 12 out of 12 houses sold House Area: 6,784 sq ft Site Area: 7,708 – 10,138 sqft Rose Garden/ Lotus Current Selling Price: Garden Villas c.US$1.2 million or US$170 6 out of 26 houses sold psf
Slide 23: Star City Zones A & B
STAR CITY Z0NES A & B Zone A (A3 and A4) – Total sales S$60.5 million, only S$37.8 m recognized, – Remaining S$22.7 million to be recognised within next 3-9 months as construction progresses – Average transacted price: US$100 psf Zone B Conditional agreement with third party investor for the sal
Slide 24: Star City Zone C
STAR CITY ZONE C Zone C Collaboration with the third party investor after Zone B Agreement to sell the LDRs for future development and manage the construction and sale of 950 apartment units* to buyers Recorded US$20 million (S$25.2 million) as the consideration for the sale of the LDRs Perf
Slide 25: Key Real Estate Metrics
KEY REAL ESTATE METRICS Pun Hlaing Golf Star City Downtown Estate Historical Land Cost US$ psf: 7.5 (2006) 17 (2012) NA Current Land prices US$ psf: 60-70 501 >500 Construction Cost US$ psf (GFA): 64 - 80 72 - 80 NA Selling Price US$ psf: 200 150 300 - 500 1 Asking price for a land parcel next to St
Slide 26: Recent Developments
RECENT DEVELOPMENTS
Slide 27: Proposed Acquisitions
PROPOSED ACQUISITIONS Proposed acquisition of an 80% interest in Landmark Development (approx. 25 year lease): S$54 million (US$43 million) Proposed LDRs and businesses at PHGE: S$96 million (US$77 million) Proposed acquisition of CPCL (distributor for New Holland tractors): S$15 million (US$1
Slide 28: Bringing KFC to Myanmar
BRINGING KFC TO MYANMAR The Opportunity in Myanmar About KFC • Consumer class of up to 19 million • One of the world’s largest by 2030 with consumer spending restaurant chains most recognised expected to increase 3-fold consumer brands • No global QSR brands in country • Over 18,000 locations in 118
Slide 29: Bringing KFC to Myanmar
BRINGING KFC TO MYANMAR Myanmar’s first KFC restaurant to «A
Slide 30: Financial Highlights
FINANCIAL HIGHLIGHTS
Slide 31: 2Q2015 Financial Highlights
2Q2015 FINANCIAL HIGHLIGHTS Revenue increased over 53% year- Revenue on-year to S$41.2 million S$’million 50 52.9% Net profit jumped by 177% year- 40 41.2 on-year to S$16.5 million 30 27.0 Net profit attributable to 20 shareholders recorded a strong 10 222% year-on-year growth to S$10.8 mill
Slide 32: Quarterly Analysis
QUARTERLY ANALYSIS S$ million 45 41.2 Revenue 40 Gross Profit Net Profit attributable to shareholders 35 30.2 30 27.0 27.5 25 20.5 20 2 17.3 16.1 15.5 15.2 15 13.6 13.0 13.4 12.8 11.6 11.5 12.1 10.8 3 9.8 10 8.6 7.3 5.9 6.4 6.0 6.4 5.5 5.1 5.4 5.2 4.9 5 3.7 3.3 2.0 1.4 2.5 2.1 2.2 1.6 1.1 1.4 1.4 0.
Slide 33: Capital Management
CAPITAL MANAGEMENT
Slide 34: Capital Management
CAPITAL MANAGEMENT Date Type of capital raising/purpose Net Proceeds 4 for 5 rights issue at S$0.24 per S$101 million share June 2012 (US$81 million) To fund acquisition of 135 acres LDRs in Star City Placement at S$0.525 per share To fund working capital (12%), real S$100 million Nov 2012 estate (5
Slide 35: Investment Merits
INVESTMENT MERITS Myanmar continues to push forward its reform agenda and its engagement with the rest of the world SPA and FMI, Yoma's partners in Myanmar, are well established business conglomerates Strong and experienced management largely based in Myanmar Strong track record in real esta
Slide 36: Questions & Answers
YOMA STRATEGIC HOLDINGS LTD. QUESTIONS & ANSWERS
Slide 37: Appendix
APPENDIX
Slide 38: Proposed Acquisition of PHGE LDRs
PROPOSED ACQUISITION OF PHGE LDRS
Slide 39: Recent Developments
RECENT DEVELOPMENTS Proposed Acquisition of LDRs and businesses at PHGE for US$77 million 39
Slide 40: Proposed Acquisition (PHGE)
PROPOSED ACQUISITION (PHGE) Agreed Price Proposed proportion to Agreed price Post Proposed Acquisitions Acquisition Site Area the proposed US$ psf acquisition (Interest) interest US$ (Interest) million LDRs Relating to Land 0.18 million sq ft 100% 11.46 65 100% Adjacent to Hospital (4.03 acres) Econ
Slide 41: Landmark Development
LANDMARK DEVELOPMENT Mixed-use development comprising: 2 million sq ft (Gross Floor Area) 5-star hotel in iconic heritage building (Peninsula) 5-star luxury condominium building Business hotel Executive serviced apartment Grade-A office towers 41
Slide 42: Non-Real Estate Divisions
NON-REAL ESTATE DIVISIONS
Slide 43: Luxury Tourism
LUXURY TOURISM 52.5% stake in Balloons over Bagan Developing hotels in Bagan and Pun Hlaing Golf Estate Maiden revenue contribution from Luxury Tourism in FY2014 43
Slide 44: Automotive
AUTOMOTIVE Mitsubishi Motors Corporation and Mitsubishi Corporation – Operates the second After-Sales Centre in Mandalay – Introduction of Mitsubishi vehicles commenced – Provide sales support for Bridgestone tyres Sumitomo Corporation – Service and distribute Hino brand trucks and buses – Const
Slide 45: Agriculture & Logistics
AGRICULTURE & LOGISTICS Formation of Yoma Agricultural & Logistics Holding Pte. Ltd. (YALH) to invest in the following businesses Coffee Plantation in Maw Tin Estate with ED&F Man Investment in Dairy Production Agricultural Cold Chain Business with Kokubu & Co., Ltd Commercial Vehicle Le
Slide 46: Strategic Investments
STRATEGIC INVESTMENTS Retail FMCG • First store located in FMI Centre, Pabedan • 30% interest in ABC Group’s assets and Township of Yangon launched in May 2013 businesses* Telecommunications Elevators • 25% interest in a JV with Digicel Group to • 20% interest in a JV with Mitsubishi and FMI in cons
Slide 47: Financial Highlights
FINANCIAL HIGHLIGHTS
Slide 48: P&L Statement
P&L STATEMENT In S$’million unless Change Change 2Q2015 2Q2014 1H2015 1H2014 otherwise stated (%) (%) Revenue 41.2 27.0 52.9 58.7 42.4 38.2 Cost of sales (25.7) (14.8) 73.0 (38.1) (24.3) 57.0 Gross profit 15.5 12.1 28.2 20.5 18.2 13.1 Other operating gains 10.5 0.1 N.M. 16.3 0.2 N.M. Expenses Financ
Slide 49: Selected Balance Sheet Items
SELECTED BALANCE SHEET ITEMS S$’million 30 Sept 2014 31 Mar 2014 Cash and cash equivalents • 47%: Unbilled trade 61.5 16.7 receivables Trade and other receivables 122.4 86.1 • 22%: Project costs Inventories 0.9 0.7 Properties under development 28.5 39.4 LDRs 145.3 158.2 Strong landbank – LDRs are he
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