Yoma Strategic Holdings Ltd. · SGX:Z59
Yoma Strategic — Debt Investor Presentation (August 2023)
43 slides from Yoma Strategic's debt investor presentation, Aug 21, 2023
Slide 1: Corporate Presentation
Wil CORPORATE PRESENTATION
Slide 2: Contents
CONTENTS MYANMAR UPDATES OVERVIEW OF YOMA STRATEGIC FINANCIAL HIGHLIGHTS KEY BUSINESS HIGHLIGHTS CGIF INFORMATION SUMMARY OF THE BOND OFFERING APPENDIX 2
Slide 3: Myanmar Updates
MYANMAR UPDATES GDP is expected to increase by 3.0%, albeit with uneven performance across sectors and businesses, with inflation expected to ease to 14.0% in FY20231. The depreciation of MMK, persistent supply shortages, and changes in government policies continue to create operational challenges f
Slide 4: Overview of Yoma Strategic
OVERVIEW OF YOMA STRATEGIC 4
Slide 5: Overview of Yoma Strategic Holdings
OVERVIEW OF YOMA STRATEGIC HOLDINGS Listed on the Singapore More than 20+year of operating Strong Corporate Stock Exchange experience in Myanmar Governance • First Myanmar-centric stock • Affiliated with Serge Pun & • Top 5% of the Governance and listed on the Singapore Stock Associates (SPA) and Fi
Slide 6: Yoma Strategic's Journey
YOMA STRATEGIC’s JOURNEY Pure play real estate Identify and consolidate core focus Accelerate into the next phase of Focus on real estate and mobile developer sectors growth financial services sectors • Leveraged the Group’s • Streamlined into three of the most • Built dominant positions and • Conti
Slide 7: Geographical Presence
GEOGRAPHICAL PRESENCE 1 1 2 2 2 6 11 3 1 3 1 18 51 3 1 4 2 1 1 7
Slide 8: Our Board of Directors
OUR BOARD OF DIRECTORS Experienced Board with a majority of Non-Executive Independent Directors MS. WONG SU-YEN Non-Executive Lead Independent Director Mr. Jaime Alfonso Antonio Eder Zobel De Ayala 30+ years of experience in driving business strategy, Non-Executive Non-Independent Director talent de
Slide 9: Our Key Management
OUR KEY MANAGEMENT MR. SERGE PUN MS. JOYCELYN SIOW Executive Chairman Group Financial Controller MR. MELVYN PUN Chief Executive Officer MS. JANE CHIA Group Treasurer MR. KENNETH SEE MR. MICHAEL TOH MR. JR CHING Head of Corporate Finance Chief Financial Officer Group General Counsel Group Treasurer M
Slide 10: Financial Highlights for 12M-Mar2023
FINANCIAL HIGHLIGHTS for 12M-Mar2023 10
Slide 11: Key Financial Highlights
REVENUE KEY FINANCIAL +54.5% HIGHLIGHTS US$ Million 140 CORE EBITDA 123.6 120 US$ Million +50.4% Strong performance in core businesses: 100 20 18 17.6 • Record home sales*, record F&B sales and 80.0 80 16 completion of the Wave Money acquisition 60 14 drove revenue growth by 54.5%. 12 11.7 40 • Impr
Slide 12: Key Financial Highlights: Net Debt and Net Gearing
KEY FINANCIAL NET DEBT AND NET GEARING RATIO HIGHLIGHTS Significant improvement in financial position: • Strong cash flow generation led to a substantial reduction in the Group’s net debt by US$125.2 million to US$159.1 million and in the net gearing ratio to 18.6%. • The Group anticipates net debt
Slide 13: Segment Results: Yoma Land Development
SEGMENT RESULTS YOMA LAND DEVELOPMENT Increase in revenue was primarily driven by the sale and construction of new Key Income Statement Items, 12M-Mar2022 12M-Mar2023 projects launched, namely City Villas at StarCity and The Hills at Pun Hlaing Estate. US$ million Revenue 27.8 45.8 Sales across all
Slide 14: Segment Results: Yoma Land Services
SEGMENT RESULTS YOMA LAND SERVICES Leasing revenue increased primarily from the commercial rent from the Key Income Statement Items, 12M-Mar2022 12M-Mar2023 converted office buildings (formerly the Dulwich College Yangon StarCity campus)*. US$ million Leasing 3.1 4.1 Decline in estate operations rev
Slide 15: Segment Results: Wave Money
SEGMENT RESULTS WAVE MONEY Wave Money became a subsidiary of the Group in December 2022*: Key Income Statement Items, 12M-Mar2022 12M-Mar2023 • Contributed US$19.7 million towards revenue from Dec-2022 to Mar-2023. • Prior to Dec-2022, Wave Money's results were reflected as a share of US$ million pr
Slide 16: Segment Results: Leasing - Yoma Fleet
SEGMENT RESULTS LEASING - YOMA FLEET Revenue declined from: • Contracts terminations and expiration in the lease portfolio, rental relief Income Statement and Key Income Statement Items, 12M-Mar2022 12M-Mar2023 plan granted for idle Caterpillar equipment and contract renewals/extensions at lower rat
Slide 17: Segment Results: Yoma F&B
SEGMENT RESULTS YOMA F&B Yoma F&B business has shown significant recovery mainly driven by : Income Statement and Key Income Statement Items, 12M-Mar2022 12M-Mar2023 • Increased consumer spending. • Fewer operational disruptions. US$ million • Successful marketing campaigns and promotions with servi
Slide 18: Segment Results: Yoma Motors
SEGMENT RESULTS YOMA MOTORS Slight decline in revenue was mainly driven by: Income Statement and Key Income Statement Items, 12M-Mar2022 12M-Mar2023 Fewer passenger vehicles sold due to supplies being limited from the US$ million vehicle import restrictions. Revenue - Passenger Vehicles 3.3 2.0
Slide 19: Key Business Highlights
KEY BUSINESS HIGHLIGHTS 19
Slide 20: Yoma Land
YOMA LAND City Loft @ StarCity1 • Towers 10 and 11 comprising 280 units have been completely sold and booked Number of units Number of units Phase launched sold and booked Towers 10 and 11 280 280* *Based on the latest development plans and subject to change City Loft West2 • Launched the 1st Tower
Slide 21: Yoma Land
YOMA LAND 21
Slide 22: Yoma F&B / Yoma Motors
YOMA F&B YOMA MOTORS YKKO pop-up store in Bangkok Yoma Heavy Equipment officially became the distributor for New Holland Construction in August 2023. 22
Slide 23: Outlook for FY2024
OUTLOOK FOR FY2024 Invest in human capital and promote and empower local management to leadership positions. Scale up real estate development activities and resume construction of Yoma Central. Build out the Group’s broader digital ecosystem. Enhance Wave Money’s digital platform by expanding its pr
Slide 24: CGIF Information
CGIF INFORMATION C Credit Guarantee & Investment Investment Facility An Asian Bond Markets Initiative
Slide 25: CGIF Profile
CGIF PROFILE Overview • Credit Guarantee and Investment Facility (CGIF), a trust fund of Asian Development Bank (ADB), was established in November 2010 with capital contributions from ASEAN+3 governments and ADB. • Objective: promote financial stability and boost long-term investment in the ASEAN+3
Slide 26: Guarantee Structure
GUARANTEE STRUCTURE General Bond Guarantee Terms • Irrevocable & unconditional • Covers all non-payment event • Guarantees principal, scheduled interest payments, additional accrued interest, and any bondholder’s representative expenses. • CGIF retains the right to accelerate so long as CGIF continu
Slide 27: Guarantee Portfolio
Key strengths of a CGIF guarantee • One of the most active third-party bond guarantor in ASEAN+3 region. CGIF Guarantee Portfolio has guaranteed c.US$3bn bonds (c.US$500mn in Thailand) across 9 local currencies $649mn Reinsured / • Consistent investment grade rating since 2012. CGIF is rated AA(glob
Slide 28: FAQs: CGIF and ADB Relationship
FAQs Explain the relationship between CGIF and ADB • CGIF is established as a trust fund of ADB. CGIF has its own assets and operations, although not a separate legal identity from ADB. • ADB is a key contributor (15.6% of paid-in-capital) and sits on the board of CGIF, providing strategic guidance
Slide 29: FAQs: CGIF Assets After KNM Bond Default
FAQs How was CGIF’s assets affected after the default of the KNM bond? • Despite the default, asset quality remains sound as assessed by rating agencies. • The guarantee claim of c.US$90mn is small (only 7% of equity) relative to CGIF’s total equity of c.US$1.3bn. • Capital and liquidity buffers rem
Slide 30: FAQs: KNM Default and Bondholder Payment
FAQs KNM defaulted on 18 Nov 2021. Why were bondholders paid on 17 Dec 2021? • KNM’s Bond T&Cs had a grace period of 14 days for principal and 21 days for interest. This meant the earliest date that the bondholder’s representative may send a demand letter to CGIF was after the grace period or 2 Dec
Slide 31: FAQs: Claims Process on Missed Payment
FAQs Step-by-step claims process upon a missed payment and key difference between KNM and Yoma T&Cs. KNM Yoma Missed payment Missed Payment Bondholders may send a demand Grace period of 14 days for principal letter immediately to CGIF. and 21 days for interest has to lapse before a demand letter can
Slide 32: Summary of the Bond Offering
SUMMARY OF THE BOND OFFERING 32
Slide 33: Indicative Bond Structure
INDICATIVE BOND STRUCTURE Issuer Yoma Strategic Holdings Ltd. (“YSH”) Bond Type Senior Guaranteed THB Bonds Guarantor Credit Guarantee and Investment Facility, a trust fund of the Asian Development Bank (“CGIF”) Guarantor Rating AAA/Stable by TRIS Rating Company Limited as of 28 November 2022 Issue
Slide 34: Tentative Timeline
Tentative Timeline 1st Filing Roadshow Bookbuilding Subscription Issue Date Submission 21 September 2023 21 September 2023 [October] 2023 [•] 2023 [•] 2023 34
Slide 35: Appendix
APPENDIX 35
Slide 36: Trading Updates 3M-Jun2023
TRADING UPADTES 3M-Jun2023 36
Slide 37: Trading Updates 3M-Jun2023
TRADING UPDATES 3M-JUN2023 Substantial revenue increase from Real Estate Development Revenue Breakdown and Mobile Financial Services Investment and Corporate US$(Million) 3M-Jun2022 3M-Jun2023 YoY% change 3% Yoma Motors 7% Yoma Land 9.2 16.4 78.3% Real Estate Development* 6.4 14.3 123.4% Real Estate
Slide 38: Yoma Land
YOMA LAND 3M-Jun2023 revenue grew by 78.3% YoY to US$16.4 million • Real Estate Development saw revenue increase by 123.4%, driven by sales and construction progress at City Villas at StarCity and The Hills at Pun Hlaing Estate. 37% • Unrecognised revenue increased to US$40.5 million as at 30 June 2
Slide 39: Mobile Financial Services - Wave Money
MOBILE FINANCIAL SERVICES - Wave Money 3M-Jun2023 revenue grew by 2.3% YoY to US$13.6 million • OTC and Digital transaction volumes grew by 45.4% and 75.6% YoY, respectively, facilitating the transfer of approximately US$2.4 billion of remittances and payments. 31% • New regulatory requirements on c
Slide 40: Leasing – Yoma Fleet
LEASING – Yoma Fleet 3M-Jun2023 revenue grew by 38.5% YoY to US$1.8 million • Growth in revenue driven by an increase in operating leases, a significant increase in daily rental demand from corporates and individuals as domestic travel continued its momentum, and a shift in the portfolio mix 4% away
Slide 41: Yoma F&B
YOMA F&B 3M-Jun2023 revenue grew by 43.6% YoY to US$7.9 million • 70 restaurants as at 30 June 2023 comprised of 35 YKKO restaurants and 35 KFC restaurants. 18% • Significant revenue growth driven by continued healthy customer demand, a larger operating platform and successful marketing campaigns. I
Slide 42: Yoma Motors
YOMA MOTORS 3M-Jun2023 revenue decreased by 14.3% YoY to US$3.0 million • Revenue from Heavy Equipment was flat as the revenue generated from Hino trucks following the Group’s acquisition of Sumitomo’s 76.8% stake in the Hino business in February 2023 offset lower revenue at the New 7% Holland tract
Slide 43: Thank You
THANK YOU VOMA STRATEGIC HOLDINGS LTD.
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