Yoma Strategic Holdings Ltd. · SGX:Z59
Yoma Strategic — Investor Presentation (March 2018)
47 slides from Yoma Strategic's investor presentation, March 2018
Slide 1: Accelerating to the Next Phase of Growth
Accelerating to the Next Phase of Growth 1
Slide 2: Yoma Strategic's Core Pillars
YOMA STRATEGIC’S CORE PILLARS Building strong verticals and collaboration Automotive & Real Estate Heavy Equipment Consumer Financial Services Investments • Leading developer • Distribution rights for • F&B retail, distribution • Wave Money • Telecommunications international brands & wholesale • Aut
Slide 3: Strong Corporate Governance Focus
STRONG CORPORATE GOVERNANCE FOCUS Ranked top 5% out of 606 SGX-listed companies, 2017 Singapore Governance & Transparency Index Best Managed Board Award (Gold), 2016 Singapore Corporate Awards for the S$300 million to S$1 billion Market Cap Category Ranked 17th among the 100 largest SGX-listed compa
Slide 4: Journey and Strategic Roadmap
JOURNEY AND STRATEGIC ROADMAP FY2006 – FY2010 FY2011 – FY2014 FY2015 – FY2017 Mainly Pure Play Real Diversifying Into Consolidate Into Estate Developer Many New Core Operations Businesses ▪ Focus on real estate ▪ Diversify broadly into many ▪ Streamline into three most business sectors promising ▪ L
Slide 5: Transforming into a Disciplined Conglomerate
TRANSFORMING INTO A DISCIPLINED CONGLOMERATE 2020 Vision Ahead of our 2020 Target Non-real-estate businesses Target is to have at least 50% contributed 47% of FY2017 revenue of the revenue generated and 61% of 9M2018 revenue with by non-real estate improved gross margins businesses and to increase 6
Slide 6: Financial Services
FINANCAL SERVICES 6
Slide 7: The Financial Services Market Opportunity
THE FINANCIAL SERVICES MARKET OPPORTUNITY • Inefficient financial system bottlenecking economy • Myanmar is still a cash economy • 80% of the population remains unserved by the banking system • Huge shortage of consumer credit • Myanmar ranked 177th out of 190 economies in ease of accessing credit i
Slide 8: Strategic Partnerships
STRATEGIC PARTNERSHIPS The leading on- demand transportation A leading mobile payment A leading fleet leasing and fintech platform in provider in Myanmar operator in Myanmar Southeast Asia 8
Slide 9: Wave Money
WAVE MONEY The acquisition of Wave Money is the first step in seizing this opportunity Has the biggest distribution network agents and access to A Mobile Financial rural area Service Provider 99
Slide 10: Who is Wave Money?
Who is Wave Money? • Wave Money is a joint venture between Telenor (51%), Yoma Strategic (34%)*, FMI (10%) and Yoma Bank (5%) • Mass market focused with goal of providing mobile based financial services throughout Myanmar • Product offering includes money transfer, either through mobile account or a
Slide 11: Banking the unbanked through mobile financial services
Banking the unbanked through mobile financial services ▪ Myanmar population thinly served. Less than 20% have a bank account. 60% of adults say they cannot open a bank account without formal employment ▪ Large informal economy – estimated to be 5.4 trillion kyats ▪ Capital constrained and regulated
Slide 12: Wave Money has the biggest distribution network in Myanmar
Wave Money has the biggest distribution network of any regulated financial institution in Myanmar 267 townships covered (out 20,000 active of 330) Wave Shops 144 350+ staff in Distributors broader distribution team Wave Money network is growing its network at 1,500+ Wave Shops per month Currently 10
Slide 13: Monthly money transfer transactions and volumes growth
Monthly Money transfer transactions grew by CMGR of 31% while volumes grew by 30% Compound Monthly Growth Rate (CMGR) of • WST is Wave Shop Transfer, an over the counter money transfer. • WA is Wave Account, a customer account connected to the MSISDN. • WST Transactions includes WST-WST and WST-WA •
Slide 14: Monthly Revenue grew by 1130% (annual) and 22% (CMGR)
Monthly Revenue grew by 1130% (annual) and 22% (CMGR) Compound Monthly Growth Rate (CMGR) of • Revenue includes prepaid airtime sales in addition to money transfer revenues. Source: Wave Money 14
Slide 15: Yoma Fleet
YOMA FLEET Strong year-on-year growth in fleet size No. of units 700 649 600 560 565 540 509 491 500 400 359 332 313 300 280 200 149 152 124 100 - 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 15
Slide 16: Partnership with Grab
PARTNERSHIP WITH GRAB Yoma Fleet to provide vehicle leasing, alongside with financing options to Grab driver-partners to upgrade quality of taxis in Myanmar Image: http://www.theindependent.sg/grab-launches-series-of-initiatives-in-myanmar/ 16
Slide 17: Food
FOOD 17
Slide 18: Our Consumer Brands & Partnerships
OUR CONSUMER BRANDS & PARTNERSHIPS Leading International and local brands DISTRIBUTION F&B STORES BOTTLING & LOGISTICS Joint venture with Kokubu Metro Group Franchisee for one of Owns Access Myanmar a leading Japan food a leading German the world’s largest QSR Distribution Company distribution compa
Slide 19: KFC Stores in Myanmar
21 KFC STORES IN MYANMAR Yangon Stores Mandalay Stores • KFC Bogyoke • KFC Plaza @ 78 • KFC Junction Square • KFC The Move (Mingalar • KFC Myanmar Plaza Mandalay) • KFC Dagon Centre 2 • KFC Hledan Sein Gay Har Taunggyi Stores • KFC Capital Hypermarket • KFC City Square • KFC Domestic Airport • KFC J
Slide 20: Expansion Outside of Yangon
EXPANSION OUTSIDE OF YANGON Massive opening day turnout for out Mandalay, Taunggyi and Bago stores 20
Slide 21: Food & Beverage Expansion Strategy
FOOD & BEVERAGE EXPANSION STRATEGY 50+ Phase I: Nationwide build for 32 2020+ KFC stores March Revenue 22 2019 S$11 million March 2018 Phase II: 12 Acquire and develop Store count March new brands 2017 21
Slide 22: Motor
MOTOR 22
Slide 23: Positioned as the Myanmar Exclusive Distributor for Leading Brands
POSITIONED AS THE MYANMAR EXCLUSIVE DISTRIBUTOR FOR LEADING BRANDS Sequentially building a portfolio of businesses with different growth trajectories A Comprehensive Suite of Brands Heavy Equipment Passenger and Commercial Vehicles 23
Slide 24: New Holland Tractors
NEW HOLLAND TRACTORS 3Q2018 revenue jumped by44% year-on-year S$ million 14 Tractors Implements Spare Sparts Services 12.5 12 11.8 11.0 457 Number of 598 9.8 implements sold 10 484 8.2 457 8 7.1 549 5.8 221 6.0 6 5.6 264 159 5.3 290 Number of 4.7 238 241 tractors sold 273 228 4 241 244 202 181 147 1
Slide 25: New Holland Tractors
NEW HOLLAND TRACTORS Sale of New Holland tractors is expected to continue to see strong growth Potential Sales in 4Q2018 Number of tractors sold in 9M2018 has exceeded Potential Retail Sales FY2017. 500 units from the 2nd AMD 500 organized sale to be delivered in the coming months 692 775 607 FY2016
Slide 26: Land
LAND 26
Slide 27: Leading Myanmar Property Developer
LEADING MYANMAR PROPERY DEVELOPER WITH 10 MILLION SQ. FT OF LAND BANK ▪ Strategy based on building large scale projects (townships) ▪ Value accretion over time as community grows ▪ Leading developer in Myanmar with 20+ year experience YOMA CENTRAL & THE PENNISULA YANGON 27
Slide 28: Pun Hlaing Estate
PUN HLAING ESTATE 652 acres of luxury homes and amenities 28
Slide 29: Building a Community at Pun Hlaing Estate
Building a Community at Pun Hlaing Estate International Hospital – International School – Variety of outdoor activities– Pun Hlaing Siloam Hospital Dulwich College Yangon BMX Course Gary Player Course – State-of the Art Gym Variety of food options Leopalace21 Myanmar Open 2017 29
Slide 30: StarCity
STARCITY 135 acres of housing (middle-to upper market) and amenities Downtown Yangon StarCity ▪ Located between downtown Yangon and Thilawa Special Economic Zone ▪ Expected to feature 10,000 homes ▪ Sold more than 2,000 units* ▪ 1.7 million sq. ft of commercial space Thilawa Special Economic Zone *A
Slide 31: Building a Community at StarCity
Building a Community at StarCity 31
Slide 32: Increasing Recurring Rental Income
INCREASING RECURRING RENTAL INCOME Portfolio of Investment Properties Office Development at Pun Hlaing Estate Residential Apartments Retail units in StarCity 32
Slide 33: Increasing Recurring Rental Income
INCREASING RECURRING RENTAL INCOME Portfolio of Investment Properties Pun Hlaing Campus StarCity Campus 33
Slide 34: Yoma Central & The Peninsula Yangon
YOMA CENTRAL & THE PENINSULA YANGON Prime site in the heart of the CBD Project Site • Signed 2 separate extended master leases in July 2016 • Obtained MIC approvals in January 2017 • Groundbreaking ceremony held in February 2017 • Expected completion in FY2021 34
Slide 35: Yoma Central & The Peninsula Yangon
YOMA CENTRAL & THE PENINSULA YANGON More than 1.3 million of retail and office space 35
Slide 36: The Peninsula Residences
THE PENINSULA RESIDENCES Target to launch in the coming months 36
Slide 37: Investments
INVESTMENTS 37
Slide 38: Investments – Key Highlights
INVESTMENTS – KEY HIGHLIGHTS TELECOMMUNICATIONS TOURISM DISTRIBUTED TOWERS ASSETS POWER NETWORK • Investment has grown • The spin-off of the Group’s • Pilot programme expected more than 3 times tourism related businesses, to be operational in FY2018 in value to US$70.0 million which include Balloons
Slide 39: Financial Highlights
FINANCIAL HIGHLIGHTS 39
Slide 40: FY2017 Key Financial Highlights
FY2017 KEY FINANCIAL HIGHLIGHTS Delivering resilient performance S$124 m 40.4% S$36 m 15.0% RECORD REVENUE GROSS PROFIT NET PROFIT ATTRIBUTABLE FINANCIAL MARGINS TO EQUITY HOLDERS GEARING RATIO Driven by Consumer Improved margins Lifted by strong Remains below and Automotive in Real Estate & gross p
Slide 41: Financial Performance Since 2013
FINANCIAL PERFORMANCE SINCE 2013 S$ Million 124.2 110.9 111.9 100.5 60.5 50.1 44.7 45.6 40.7 37.2 35.9 26.2 28.1 14.4 16.4 FY2013 FY2014 FY2015 FY2016 FY2017 Revenue Gross Profit Net profit attributable to Equity Holders 41
Slide 42: Healthy Balance Sheet
HEALTHY BALANCE SHEET EBITDA Interest Total Capital Net Debt 1The financial gearing ratio is calculated as net debt divided by total capital. Net debt is calculated as borrowings (excluding loans from non-controlling interests) less cash and cash equivalents. Total capital is calculated as total equ
Slide 43: Sources of Funding
SOURCES OF FUNDING Access to Equity Markets • June 2012: 4 for 5 rights issue at S$0.24 per share raised S$101 million • November 2012: Placement at S$0.525 per share raised S$100 million • June 2014: Placement at S$0.70 per share raised S$95 million • February 2015:1 for 3 rights issue at S$0.38 pe
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Slide 45: Financial Performance
Financial Performance Income Statement FY2013 FY2014 FY2015 FY2016 FY2017 9M/FY2017 9M/2018 Unit: Thousand S$ (Audited) (Audited) (Audited) (Audited) (Audited) (Unaudited) (Unaudited) Revenue 60,467 100,493 110,927 111,868 124,184 66,739 82,948 Cost of sales (34,260) (55,837) (65,340) (71,134) (74,0
Slide 46: Financial Performance – Balance Sheet (I)
Financial Performance Balance Sheet (I) FY2013 FY2014 FY2015 FY2016 FY2017 9M/FY2018 Unit: Thousands S$ (Audited) (Audited) (Audited) (Audited) (Audited) (Unaudited) ASSETS Current assets Cash and cash equivalents 106,179 16,741 20,025 13,439 34,825 22,343 Trade and other receivables 35,353 86,074 8
Slide 47: Financial Performance – Balance Sheet (II)
Financial Performance Balance Sheet (II) FY2013 FY2014 FY2015 FY2016 FY2017 9M/FY2018 Unit: Thousands S$ (Audited) (Audited) (Audited) (Audited) (Audited) (Unaudited) LIABILITIES Current liabilities Trade and other payables 35,102 39,358 59,550 82,008 147,699 112,896 Current income tax liabilities 2
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