Yoma Strategic Holdings Ltd. · SGX:Z59
Yoma Strategic — Investor Presentation (September 2020)
29 slides from Yoma Strategic's investor presentation, Sep 23, 2020
Slide 1: Build a Better Myanmar for its People
Build a Better Myanmar for its People
Slide 2: Content
CONTENT 1 COVID-19: Economic and Company updates 2 Strategic Partnerships 3 3M-Jun 2020 results trading updates and key developments 2
Slide 3: Content
CONTENT 1 COVID-19: Economic and Company updates 2 Strategic Partnerships 3 3M-Jun 2020 results trading updates and key developments 3
Slide 4: COVID-19 Statistics in Myanmar
COVID-19 STATISTICS IN MYANMAR COVID-19 cases, recovered and deaths per 1,000 person in population in ASEAN Countries as of 20th September 2020 9.826 9.758 Positive Case Recovered Death 2.610 2.092 0.005 0.045 0.893 0.647 0.035 0.007 0.004 0.002 0.001 0.000 0.000 0.000 0.331 0.324 0.315 0.288 0.107
Slide 5: Government Measures
GOVERNMENT MEASURES Key highlights in COVID-19 Economic Relief Plan GOALS Action Plans Improve macroeconomic environment through monetary stimulus Lowered bank interest rate from 8.5% to 7.0% and minimum reserve requirement on banks by at least 150 bps MMK 100 billion lent to the affected MSMEs befo
Slide 6: Myanmar Economy
MYANMAR ECONOMY Longer term potential continues to attract foreign Investments ADB expects Myanmar GDP to grow Foreign Investments at 1.8% in 2020 and 6.0% in 2021 ▪ As at August 2020, approved FDI amounted to US$5 billion, 20% GDP Growth Rate, 2020 forecast increase from last year and the Governmen
Slide 7: Yoma Well-Positioned to Emerge Stronger
YOMA WELL-POSITIONED TO EMERGE STRONGER Milestones between January 2019 and May 2020 JANUARY RAISED US$70 MILLION WITH THAI BOND ISSUANCE 2019 The AAA rated bonds, which are fully guaranteed by CGIF, a trust fund of ADB, marked the first time a Myanmar focused entity had tapped the international bon
Slide 8: Managing Costs and Preserving Cash
MANAGING COSTS AND PRESERVING CASH Since March 2020 Key Commentaries Reducing Net Gearing Ratio • Amidst the onset of the COVID-19 pandemic, numerous steps had been taken to manage costs and preserve cash, including Net Debt Total Capital Gearing Ratio suspending and deferring non-essential operatin
Slide 9: Content
CONTENT 1 COVID-19: Economic and Company updates 2 Strategic Partnerships 3 3M-Jun 2020 results trading updates and key developments 9
Slide 10: Strengthening Its Role as a Leading Player in Myanmar's Fintech Sector
1. STRENGTHENING ITS ROLE AS A LEADING PLAYER IN MYANMAR’S FINTECH SECTOR 10
Slide 11: Strong Fundamentals for Digital Money
STRONG FUNDAMENTALS FOR DIGITAL MONEY COVID-19 accelerating the trend towards a cashless society Low banking penetration & infrastructure Fast evolving digital ecosystem provides a massive opportunity Mobile connection Internet users Social media users 25% of adults have bank accounts 30% of adults
Slide 12: Ant Financial Partnership
ANT FINANCIAL PARTNERSHIP Investment and expertise to accelerate digitalisation plans Investment of US$73.5 million for a substantial minority stake in Wave Money ▪ Ant Group is the parent company of Alipay, China’s largest digital payment platform serving over one billion users1. ▪ Wave Money will
Slide 13: Wave Money Recorded Strong Growth
WAVE MONEY RECORDED STRONG GROWTH Share of profit from the 34% Wave Money stake grew significantly US$6.1 million US$0.2 million 12M-Mar2019 12M-Mar2020 Apr'18 - Mar'19 Apr'19 - Mar'20 Figures are extracted from the press release announced on 24 June 2020 13
Slide 14: Wave Money's Growth Trajectory
WAVE MONEY’S GROWTH TRAJECTORY Creating greater value in the longer term Business Valuation Key Attributes Comparable Units Metrics • Dominant market leader • Price/sales • Western Union OTC • Strong cashflow generation • EV/EBITDA • MoneyGram (Money with healthy margins • Wing Transfer) • Growth co
Slide 15: Yoma Strategic to Be the Controlling Shareholder of Wave Money
YOMA STRATEGIC TO BE THE CONTROLLING SHAREHOLDER OF WAVE MONEY Data drives end user financing & cross business collaboration Expands automotive financial and hire purchase product Payment platform offerings Wave Money has strong synergies with Yoma with merchants, e.g. Strategic businesses KFC Y
Slide 16: Strategic Tie-Up with Ayala Corporation Provides a Valuation Benchmark
II. STRATEGIC TIE-UP WITH AYALA CORPORATION PROVIDES A VALUATION BENCHMARK 16
Slide 17: Ayala Corporation Investing at 45 Cents per Share
AYALA CORPORATION INVESTING AT 45 CENTS PER SHARE Re-affirms Yoma’s growth potential and prospects Investment of up to US$155 million for a 20% stake in Yoma Strategic ▪ Ayala Corporation is one of the oldest and largest conglomerates in the Philippines ▪ Has a portfolio of leading businesses that o
Slide 18: Philippines' Economic Growth as Reference for Myanmar
THE PHILIPPINES’ ECONOMIC GROWTH IN THE PAST DECADE OFFERS A USEFUL REFERENCE FOR MYANMAR’S NEXT PHASE OF DEVELOPMENT Market Cap GDP per US$ Million Capital US$ 14,000 12,000 CAGR Ayala Corp Market Cap (US$ Million) 13,000 11,000 (2000 -2019) Phillipines GDP per Capita (curent US$) 12,000 Philippine
Slide 19: Share Price Is Meaningfully Undervalued
SHARE PRICE IS MEANINGFULLY UNDERVALUED Issuance price to Ayala Corporation represents a significant premium to current share price Singapore Represents 61% premium over the cents Issuance price to Ayala 45.0 Corporation volume weighted average price of the shares traded on 16 September 2020 Share p
Slide 20: Content
CONTENT 1 COVID-19: Economic and Company updates 2 Strategic Partnerships 3 3M-Jun 2020 results trading updates and key developments 20
Slide 21: Trading Updates 3M-Jun2020
TRADING UPDATES 3M-JUN2020 Posted a revenue growth of 3.2% in 3M-Jun2020 in spite of the unprecedented challenges posed by the COVID-19 pandemic Investment and Corporate 1% Revenue, US$(Million) 3M-Jun2019 3M-Jun2020 YoY% change Yoma Land 5.6 6.8 21.4% Real Estate Development 3.3 4.8 45.5% Yoma Land
Slide 22: Yoma Land
YOMA LAND 3M-Jun2020 revenue grew 21.4% to US$6.8 million • Increase was driven by Real Estate Development business, which saw revenue increased 45.5% led by City Loft @ StarCity. • City Loft @ StarCity construction remained on track with unrecognized revenue 35% amounted to US$17 million1 and new l
Slide 23: First Landed Housing in StarCity
First landed housing in StarCity 32 villas where standard villa sits on 6,400 sq. ft. of land with a total gross floor area of 4,380 sq. ft. 23
Slide 24: Pun Hlaing Estate
Pun Hlaing Estate Greenery and emphasis on security, services and amenities are attracting buyers and renters amidst the COVID-19 pandemic. 24
Slide 25: Star City
Star City Greenery and emphasis on security, services and amenities are attracting buyers and renters amidst the COVID-19 pandemic. 25
Slide 26: Yoma F&B
Yoma F&B 3M-Jun2020 revenue declined by 30.9% to US$4.7 million • Operates 91 restaurants as at 30 June 2020 comprising 42 YKKO restaurants, 45 KFC restaurants, 3 Auntie Anne’sTM kiosks and 1 Little Sheep Hot Pot restaurant. • Particularly affected by the COVID-19 crisis due to government-imposed lo
Slide 27: Yoma Motors
Yoma Motors 3M-Jun2020 revenue increased by 33.3% to US$5.6 million • Despite the COVID-19 impact from border closures and falling crop prices, a higher number of tractors and implements were sold as agriculture businesses ramped up their activities ahead of the upcoming monsoon season. 29% • Higher
Slide 28: Yoma Financial Services
Yoma Financial Services 3M-Jun2020 revenue increased by 5.6% to US$1.9 million Yoma Fleet • The increase in revenue was mainly driven by an enlarged finance lease portfolio, which carries higher gross profit margins. 10% Wave Money • EBITDA remained positive despite a decline in revenue and transact
Slide 29: Questions & Answers
STRATEGIC HOLDINGS LTD. QUESTIONS & ANSWERS
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