Yoma Strategic Holdings Ltd. · SGX:Z59
Yoma Strategic — FY2019 Earnings Presentation
26 slides from Yoma Strategic's earnings presentation, May 29, 2019
Slide 1: FY2019 and 4Q2019 Financial Results Presentation
FY2019 and 4Q2019 Financial Results Presentation
Slide 2: Agenda
AGENDA • Financial Highlights • Key Developments 2
Slide 3: FY2019 Financial Highlights
FY2019 FINANCIAL HIGHLIGHTS 3
Slide 4: FY2019 Financial Highlights
FY2019 FINANCIAL HIGHLIGHTS DRIVEN BY CONTINUED GROWTH AT YOMA FINANCIAL SERVICES AND YOMA F&B, POSITIVE MOMENTUM AT YOMA LAND US$ million • Yoma Financial Services recorded substantial growth, with 120 Revenue Gross profit Net profit to shareholders Yoma Fleet’s portfolio increasing by 62% and Wave
Slide 5: Healthy Balance Sheet
HEALTHY BALANCE SHEET US$ million 1,200 35% Net Debt (LHS) Total Borrowings (LHS) 1,000 30.3% 30% ▪ Financial gearing ratio increased to 30.3%, but it is still below the Group’s maximum targeted 25% gearing ratio of 40.0%. 800 20% ▪ Increase in borrowings was mainly due to the 19.4% 600 first US$33.
Slide 6: 4Q2019 Financial Highlights
4Q2019 FINANCIAL HIGHLIGHTS 6
Slide 7: 4Q2019 Financial Highlights
4Q2019 FINANCIAL HIGHLIGHTS US$ million 35 Revenue Gross profit Net profit to shareholders 31.8 Increase in revenue was due to: 30 • Continued growth at Yoma F&B and Yoma Financial 25.7 Services. 25 23.3 • Revenue gains in Yoma Land’s Real Estate Services business. 20 17.9 Increase in net profit to
Slide 8: Key Highlights of Yoma Land Business (Real Estate Development)
KEY HIGHLIGHTS OF YOMA LAND BUSINESS (REAL ESTATE DEVELOPMENT) US$ million 5 Revenue Gross profit Core Operating EBITDA ▪ Revenue was driven by the progressive revenue 4.2 recognition of previously sold units at Pun Hlaing 4 Estate, StarCity Tower 2 and Tower 4 and The 3.2 3 3.1 Peninsula Residence
Slide 9: Key Highlights of Yoma Land Business (Real Estate Services)
KEY HIGHLIGHTS OF YOMA LAND BUSINESS (REAL ESTATE SERVICES) US$ million • Increase in revenue was due to the streamlining of 48 activities at Pun Hlaing Estate Revenue Gross profit Core Operating EBITDA 44 42.2 40 ➢ Outsourcing the operations of Pun Hlaing Golf 36 and Country Club (“PHGCC”) to third
Slide 10: Key Highlights of Yoma F&B Business
KEY HIGHLIGHTS OF YOMA F&B BUSINESS US$ million Revenue Gross profit Core Operating EBITDA 5 4.5 ▪ Revenue and gross profit growth was mainly due to the higher sales from KFC and the additional revenue 4 from YKKO following the completion of the acquisition in March 2019. 3.0 3 2.3 ▪ Gross profit ma
Slide 11: Key Highlights of Yoma Motors Business
KEY HIGHLIGHTS OF YOMA MOTORS BUSINESS US$ million Revenue Gross profit Core Operating EBITDA • Lower revenue was due to the lower number of 8 tractor and implements sold in the New Holland 7 6.8 business. 6 4.9 • Improved gross profit margins was mainly due to 5 sales of larger agricultural machine
Slide 12: Key Highlights of Yoma Financial Services Business
KEY HIGHLIGHTS OF YOMA FINANCIAL SERVICES BUSINESS US$ million Revenue Gross profit Core Operating EBITDA 2.0 1.8 1.8 ▪ Revenue generated from the Financial 1.6 Services business was exclusively from Yoma 1.4 1.2 Fleet. 1.2 1.1 1.0 ▪ Fleet size increased by 61.9% year-on-year to 1,166 vehicles and i
Slide 13: Key Developments
KEY DEVELOPMENTS 13
Slide 14: Yoma Land: Progress of Yoma Central
YOMA LAND PROGRESS OF YOMA CENTRAL • As at 31 March 2019, the Group has sold 15 out of 30 units launched with another 3 being reserved at The Peninsula Residences Yangon • Both Christie’s International Real Estate and Success Realty were engaged in April 2019. Christie’s will focus on the internatio
Slide 15: Yoma Land: Focusing Sales Efforts on City Loft @ StarCity
YOMA LAND FOCUSING SALES EFFORTS ON CITY LOFT @ STARCITY • The Group’s real estate development focus since 3Q2019 has been on City Loft @ StarCity. • As at 31 March 2019, approximately 90% of the 357 launched units have been sold. • Since construction only started in April 2019 and the Group recogni
Slide 16: Yoma Land: Growing Portfolio of Investment Properties
YOMA LAND GROWING ITS PORTFOLIO OF INVESTMENT PROPERTIES TO DRIVE RECURRING RENTAL REVENUE Outsourcing non-core operations at StarCity Galaxy Towers Pun Hlaing Estate Tower 2 and Tower 4 which are Streamlining its activities at Pun Hlaing nearing completion were Estate by outsourcing the operations
Slide 17: KFC Sales Performance
KFC SALES PERFORMANCE Sales Growth FY2019 4Q2019 Total System +41.8% +31.3% Same Store +0.7% +5.7% million Kyats Annual Sales million Kyats Quarterly Sales 25,000 Same Store 6,000 20,000 Same Store New Store 5,000 15,000 4,000 3,000 10,000 2,000 5,000 1,000 0 0 4Q18 4Q19 FY2018 FY2019 17
Slide 18: Opening of Little Sheep and Auntie Anne's
OPENING OF LITTLE SHEEP AND AUNTIE ANNE’STM Little Sheep Auntie Anne’sTM • First full-service restaurant concept for the • Tied to modern retail, Auntie Anne’sTM is a brand Group for the growing middle class • Opened in Golden Valley in March 2019 • Opened first kiosk at Junction City opened in • Re
Slide 19: F&B Stores: Next Phase of Growth
F&B STORES: NEXT PHASE OF GROWTH FY2023 Target 6+ Restaurant Brands 125+ Total Stores including 70+ KFC Stores FY2020 4 brands 4 restaurant brands FY2019 c.90 stores 72 total stores as at 31 March 2019 Revenue of US$14.6 million 19
Slide 20: Wave Money Recorded Positive EBITDA Since September 2018
WAVE MONEY RECORDED POSITIVE EBITDA SINCE SEPTEMBER 2018 Revenues* (MMK) +27% -4% +11% +10% +14% +13% +19% +15% +24% +26% +5% Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18 Jan-19 Feb-19 Mar-19 *Revenue includes prepaid airtime sales in addition to money transfer revenues. 20
Slide 21: Growth in Transactions Supported by a Network of 45,000 Agents
GROWTH IN TRANSACTIONS SUPPORTED BY A NETWORK OF 45,000 AGENTS WST Transactions* +25% • WST Transactions includes WST-WST and WST-WA • WST is Wave Shop Transfer, an over the counter money transfer. WA is Wave Account, a customer account -4% • +11% connected to the MSISDN. +6% +15% +12% +19% +18% +28
Slide 22: Two Business Models: Over the Counter Money Transfer and Wave Pay Digital
TWO BUSINESS MODELS: OVER THE COUNTER MONEY TRANSFER AND WAVE PAY DIGITAL 2019 onwards: Continue Growth 2019 onwards: Scale Digital and Maximize Profitability Products & Solutions 22
Slide 23: Driving Long Term Value for Yoma Fleet
DRIVING LONG TERM VALUE FOR YOMA FLEET • Tokyo Century acquired a 20 per cent stake for US$26.6 million in Yoma Fleet, which reflects post money implied valuation US$133 million • Tokyo Century invested • Yoma Strategic’s initial investment of about US$14 million grew to US$106 million US$26.6 milli
Slide 24: Yoma Fleet: Next Phase of Growth
YOMA FLEET: NEXT PHASE OF GROWTH FY2023 Target Asset size is expected to US$200 million grow significantly with the Yoma Fleet’s asset size investment from Tokyo Century FY2020 FY2019 Revenue of US$6.3 million with an asset size of US$37.3 million 24
Slide 25: Opening of Volkswagen Showroom
OPENING OF VOLKSWAGEN SHOWROOM • Full operation for both Volkswagen showrooms in Yangon and Mandalay has commenced. • First batch of cars has arrived and deliveries of pre-sold vehicles are on going. • Interest has been positive, especially for Polo and Vento models, as their price point are competi
Slide 26: Questions & Answers
STRATEGIC HOLDINGS LTD. QUESTIONS & ANSWERS
Yoma Strategic Holdings — FY2019 Earnings Presentation on 6ix