Far East Consortium International Limited · HKEX:35
Far East Consortium International — Merger or Acquisition (March 2018)
15 slides from Far East Consortium International's merger presentation, March 2018
Slide 1: Strategic Alliance with The Star Entertainment Group and Chow Tai Fook Group
Strategic Alliance with The Star Entertainment Group and Chow Tai Fook Group 1 March 2018
Slide 2: Disclaimer
Disclaimer This document has been prepared by Far East Consortium International Limited (the “Company”) solely for information purposes. By accepting this document, you agree to maintain absolute confidentiality regarding the information disclosed in this document. This document does not constitute
Slide 3: Table of Contents
Table of Contents 1. Transaction Overview and Strategic Rationale 2. Overview of The Star’s Businesses and Summary Financials 3. Appendices 3
Slide 4: 1. Transaction Overview and Strategic Rationale
1. Transaction Overview and Strategic Rationale 4 Proposed design of a new hotel and residential tower at The Star Sydney
Slide 5: Strategic Alliance with The Star Entertainment Group ("The Star")
Strategic Alliance with The Star Entertainment Group (“The Star”) Enhancing existing relationship with The Star A$490.3 million equity investment in The Star, A$245.2 million by FEC The Star is to increase dividend payout ratio to at least 70% of normalised NPAT Marketing alliance on gaming
Slide 6: Strategic Benefits to FEC
Strategic Benefits to FEC Strengthen already established relationship with The Star and CTF Forge partnership for potential mixed-use property projects Increase exposure to the gaming business in Australia Synergistic to the gaming platform of the Group following the anticipated acquisition
Slide 7: Other Transaction Highlights
Other Transaction Highlights Strategic Alliance Agreement Subscription Agreement in Development and Marketing in Equity Investment Term: Evergreen, as long as we hold FEC and CTF each acquires approx. the shareholding 45.8m shares in The Star First right of refusal to invest in future Subscr
Slide 8: 2. Overview of The Star's Businesses and Summary Financials
2. Overview of The Star’s Businesses and Summary Financials The Star Sydney overlooking Sydney Harbour 8
Slide 9: About The Star
About The Star • An ASX 100 listed company (Stock code: SGR.AX) owning and operating world-class integrated resorts with gaming, entertainment and hospitality services • One of incumbent operators in Australia with dominant position in Sydney, Gold Coast and Brisbane • Healthy balance sheet with low
Slide 10: The Star's Summary Financials
The Star’s Summary Financials • Growing normalized gross revenue with CAGR (1H FY14 to 1H FY18) of approx. 11.1% • Solid profitability and improving operating efficiency • Strong recurring cash flow with high cash conversion ratio(2) - 1H FY18: 129%, FY17: 97%, FY16: 98% • Steady dividend growth wit
Slide 11: The Star's Summary Financials (Con'd)
The Star’s Summary Financials (Con’d) Healthy Balance Sheet (In A$mn) • Healthy balance sheet backed by 2017.12.31 2017.6.30 quality assets Cash and cash equivalent 188.6 113.7 Trade and other receivables 258.3 192.7 • Low leverage Other current assets 85.8 121.2 - Net gearing ratio: 32.2%, with maj
Slide 12: 3. Appendices
3. Appendices Concept of Queen’s Wharf Brisbane 12
Slide 13: Appendix 1: Nominated Developments
Appendix 1: Nominated Developments(1) Potential future mixed use projects (subject to acquisition) The Spit Precinct Pyrmont Precinct Gold Coast Sydney An approx. 156,000 sqm site development Development of a station in Pyrmont as part of the opportunity adjacent to Existing Sheraton Mirage proposed
Slide 14: Appendix 2: The Star Gold Coast Masterplan
Appendix 2: The Star Gold Coast Masterplan Expected approval from local council will permit: • The development of up to 2,200 apartments on The Star Gold Coast site • No limit on hotel or other integrated resort related development Concept of The Star Gold Coast The Star Gold Coast site plan 14
Slide 15: Thank You
Thank You Questions & Answers FEC Official WeChat 15
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