Singapore Exchange Ltd. · SGX:S68
Singapore Exchange — Accordia Golf Trust — Q1 FY17/18 Earnings Presentation
30 slides from Singapore Exchange's earnings presentation, Aug 14, 2017
Slide 1: Financial Results for 1Q FY17/18
Financial Results for 1Q FY17/18 (1 April 2017 to 30 June 2017) 14 August 2017 Stock code: ADQU Ver 4.0
Slide 2: Important Notice
Important Notice This presentation is intended solely for your information only and does not constitute an invitation or offer to acquire, purchase or subscribe for units (“Units”) in Accordia Golf Trust (“AGT” or the “Trust”). The information and opinions in this presentation are subject to change
Slide 3: Contents
Contents 1. Golf Market Condition 2. Financial Highlights and Capital Management 3. Portfolio Updates 4. Outlook 5. Appendix 3
Slide 4: Golf Market Condition: Positive Reservation
Golf Market Condition: Positive Reservation Sound demand for golf brought fairly positive reservation rate each month. Year-on-Year changes of number of players under reservation as at beginning of month 15% FY15/16: Change in Reservations 14.0% FY16/17: Change in Reservations 11.7% FY17/18: Change
Slide 5: Golf Market Condition: Operating Performance
Golf Market Condition: Operating Performance Number of players to AGT’s golf courses Number of Players (thousands) Utilization Rate(1) FY17/18 YoY 3 Year Average 3 Year Average Actual Actual YoY Change(4) Change(2) Change(3) Change(5) Apr 517 +5.3% +4.9% 82.2% +4.3 ppt +3.8 ppt May 587 +2.4% +1.0% 8
Slide 6: Financial Highlights and Capital Management
Financial Highlights and Capital Management Midono Country Club, Tokyo Region 6
Slide 7: 1Q FY17/18 Financials
1Q FY17/18 Financials JPY million YoY Change 1Q FY17/18 1Q FY16/17 (%) Operating Income 14,574 14,417 +1.1 Operating Profit 3,202 2,975 +7.6 Profit (after tax) 2,499 2,274 +9.9 Total Income Available for Distribution 1,794 1,526 +17.6 As at 30 Jun 2017 As at 31 Mar 2017 NAV per unit (SGD) 0.89 0.91
Slide 8: Statement of Comprehensive Income
Statement of Comprehensive Income JPY million YoY Change 1Q FY17/18 1Q FY16/17 (%) Operating Income 14,574 14,417 +1.1 Golf Course Revenue 9,948 9,740 +2.1 Restaurant Revenue 3,469 3,417 +1.5 Membership Revenue 1,095 1,164 -5.9 Other Revenue 62 96 -35.4 Operating Expenses 11,372 11,442 -0.6 Golf Cou
Slide 9: Balance Sheet
Balance Sheet JPY million As at 30 Jun 2017 As at 31 Mar 2017 As at 30 Jun 2017 As at 31 Mar 2017 Cash & Cash Borrowings from Financial 14,900 14,830 Equivalents 9,140 10,252 Institutions Trade and Other Finance Lease Payables 839 659 2,113 2,407 Receivables Trade & Other Payables 5,374 5,621 Invent
Slide 10: Capital Management
Capital Management Debt Profile as at 30 June 2017 Term Loan A (Maturity in Aug 2018) JPY15 bil / T +1.25% (T: 6-month Yen TIBOR) Extended by one year(1) Term Loan B (Maturity in Aug 2018) JPY15 bil / T +1.50% Term Loan C (Maturity in Aug 2019) JPY15 bil / T +1.75% Subordinated Loan(2) JPY500 mil /
Slide 11: Portfolio Updates
Portfolio Updates Castlehill Country Club, Nagoya Region 11
Slide 12: Asset Enhancement Initiative: Latest GPS Navigation System
Asset Enhancement Initiative: Latest GPS Navigation System Install latest GPS navigation systems in the golf carts in 1Q FY17/18; target to complete the installations by the end of 2018. - Provides safety management, e.g. locating and assisting injured players promptly. - Provides players with accur
Slide 13: AG's Programmes / Events
AG’s Programmes / Events • 40-U passport to new and current point card holders below 40 years old. • Additional special points are given to member of 40-U passport. • Lady’s golfcircle ‘Friends’, a programme under L-Style, was introduced to encourage more female players. 13
Slide 14: AG's Programmes / Events
AG’s Programmes / Events • A programme for under 18 years old • Some activities includes: (1) 2017 Junior Cup: Experience the fun of golf competition in July 2017 • Twin Lakes Country Club • Kasumi Golf Club • Otsu Country Club West Course (2) Summer Vacation Accordia Kids Competition in August 2017
Slide 15: Special Events
Special Events To confirm if ok • New Experience “DEKA CUP” • A 15 inch diameter (380mm) hole to allow easy play • More enjoyable experience, especially for beginners and ladies • To launch in other golf courses in phases DEKA CUP “でかカップゴルフ” Note: “DEKA” means “big” in Japanese • Additional Activiti
Slide 16: Collaboration with Partners
Collaboration with Partners • Accordia Points can be convertible to/from JAL miles • Tokyo Toyopet – Car rental • New Accordia Golf Visa Card • auWALLET 16
Slide 17: Outlook
Outlook Shinyo Country Club, Nagoya Region 17
Slide 18: Outlook
Outlook Steady Number of Golf Plays in Japan Expected to Continue • Underpinned by sound demand from senior players. • Number of play per golfer has been increasing, despite decrease in overall population in Japan. Golf Remains as a Popular Leisure and Sports • Golf continues to be a healthy leisure
Slide 19: Appendix
Appendix Tarumae Country Club, Other Region (Hokkaido) 19
Slide 20: Operating Performance of the Golf Courses
Operating Performance of the Golf Courses Operating Expenses JPY million 1Q FY17/18 1Q FY16/17 YoY change (%) Operating Expenses 11,372 11,442 -0.6 Golf Course Operating Cost Increase in cost of food Merchandise and Material Expenses 996 978 +1.8 materials in correspond to increase in restaurant Lab
Slide 21: Operating Performance of the Golf Courses
Operating Performance of the Golf Courses 1Q Revenue(1) in Areas (J-GAAP basis) JPY million Number of Revenue for 1Q YoY Regions Courses Change (%) FY17/18 FY16/17 Greater Tokyo 35 5,853 5,798 +0.9 Greater Osaka 15 3,145 3,091 +1.7 Greater 12 1,805 1,809 -0.2 Nagoya Other Regions 27 2,836 2,674 +6.1
Slide 22: Historical Performance
Historical Performance • Actual Number of players for AGT’s golf courses remains stable over the years. • EBITDA(1) (based on J-GAAP) reflects the stability of players regardless of unfavourable events. (1) (JPY billion) EBITDA Number of players million 16 7 5.61 5.81 14 5.75 5.42 5.45 5.53 5.69 6 1
Slide 23: Key Statistics of Initial Portfolio Golf Courses (FY16/17)
Key Statistics of Initial Portfolio Golf Courses (FY16/17) Number Appraisal Value Revenue for Utilisation NOI NOI Margin NOI Yield Regions of % as at 31 Dec 2016 % FY16/17 Rates FY16/17 FY16/17 FY16/17* FY16/17** (1) (2) (3) (4) Courses (JPY billion) (JPY billion) (%) (JPY billion) (%) (%) Greater 3
Slide 24: Number of Plays in Japan Remains Stable
Number of Plays in Japan Remains Stable • Number of plays in Japan remains stable as the number of plays per player has been increasing. • Proportion of senior plays has been increasing. Number of Play and Number of Plays Per Player No of Plays No. of Play (millions) per Player 140 14 12.0 120 11.5
Slide 25: Seasonality in Operation
Seasonality in Operation Revenue(1) per player of AGT’s 89 golf courses (J-GAAP) FY 16/17 10,000 High Season High Season 9,000 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0 Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Monthly Revenue(1) per player of AGT’s 89 golf courses (J-GAAP) JPY Year Ap
Slide 26: Revenue per Player
Revenue per Player Revenue(1) per Player (J-GAAP-based Revenue) 1Q FY17/18 1Q FY16/17 ¥12,000 ¥12,000 10,652 341 10,670 ¥10,000 352 ¥10,000 2,269 8,428 8,600 2,305 329 335 ¥8,000 75 ¥8,000 6,977 7,130 96 328 2,191 342 2,245 ¥6,000 67 ¥6,000 86 2,142 2,203 63 78 ¥4,000 7,968 ¥4,000 7,917 5,841 5,934
Slide 27: Seasonality in Operation, Accounting Profit and Cash Flows
Seasonality in Operation, Accounting Profit and Cash Flows Golf Seasonality (Image） Golf course business naturally has seasonality Operating Revenue Operating Profit High Season High Season Demand fluctuates according not only to Japanese seasons but also weather conditions, Middle Season e.g. • Rai
Slide 28: Green Fee Profile (Member vs Non-member)
Green Fee Profile (Member vs Non-member) Green fee (Member vs Non-member) in 1Q FY17/18 7,000 6,597 6,000 5,000 4,000 3,750 3,000 2,653 2,222 2,251 2,000 1,607 1,000 - Weekday Weekend All Day Member Non-member Above fee does not include cart fees, caddy fees, F&B and others and is based on the avera
Slide 29: Top Golf Operators/Owners in Japan
Top Golf Operators/Owners in Japan No. Company Name No. of Golf Courses(1) Market Share(2) 1 PGM Group 132 5.76% (3) 2 Accordia Golf 131 5.72% 3 Orix Group 39 1.70% 4 Seibu Group 28 1.22% 5 Tokyu Group 26 1.13% 6 Ichikawa Golf Kogyo Group 25 1.09% 7 OGI Group 22 0.96% 8 Cherry Golf Group 20 0.87% 9
Slide 30: Thank You
Thank You Investor Contact: Brenda Ng (Senior Manager, IR) +65 6592-1050 info@agtrust.com.sg For more information, please visit http://agtrust.com.sg/ 30
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