Thakral Corporation Ltd · SGX:AWI
Thakral — Investor Presentation (March 2017)
40 slides from Thakral's investor presentation, Mar 1, 2017
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Slide 2: Corporate Presentation
Corporate Presentation 1 March 2017 1
Slide 3: Agenda
AGENDA • Corporate Profile • Board of Directors and Key Personnel • Investment Division • Lifestyle Division • Financial Results – FY2016 • Outlook for 2017 2
Slide 4: Corporate Profile
Corporate Profile Listed on the SGX Mainboard since December 1995, Thakral Corporation Ltd has two divisions – Lifestyle Division and Investment Division. The Group invests directly or with co-investors in real estate and other investment opportunities including property-backed financial instruments
Slide 5: Board of Directors
Board of Directors Natarajan Subramaniam Inderbethal Singh Thakral Kartar Singh Thakral Independent Non-Executive Executive Director and Executive Director Chairman and Director Chief Executive Officer Lee Ying Cheun Dileep Nair Bikramjit Singh Thakral Independent Non-Executive Independent Non-Execu
Slide 6: Key Personnel
Key Personnel Anil Moolchand Daryanani Kevin Charles Barry Chief Financial Officer Joint Managing Director Thakral Capital Australia Pty Ltd Kanwaljeet Singh Dhillon Greggory John Piercy Managing Director Joint Managing Director Thakral Corporation (HK) Limited Thakral Capital Australia Pty Ltd Tors
Slide 7: Investment Division
Investment Division 6
Slide 8: About Investment Division
About Investment Division • Invests directly or with co-investors in real estate and other investment opportunities in Australia and Asia-Pacific • Earns income from services rendered from the originating, packaging and managing of projects • Expanded its businesses via a joint-venture into developm
Slide 9: Investment Division Key Highlights
Investment Division Key Highlights Investment returns from additional projects compared to last year as well as returns from completed or progressing projects saw: • Revenue hit S$36.2 million in FY2016 vs S$24.0 million in FY2015 • Segment profit was S$27.2 million vs S$15.8 million in FY2015 8
Slide 10: Investment Division Key Markets
Investment Division Key Markets • Australia • Japan • Other parts of Asia (mainly China and Hong Kong) 9
Slide 11: Investments in Australia
Investments in Australia • Investing and committing in excess of A$300 million of capital into projects with an end value surpassing A$2.4 billion with returns varying from 15-20% • Projects range from residential, mixed use to retirement housing • Projects and property investments in key cities - S
Slide 12: Investment Project Highlights Australia: Launch of GemLife
Investment Project Highlights Australia 2016 Launch of GemLife • Total committed project value of about S$21 million for the 2 projects currently underway • Resort-style retirement housing • Being developed under GTH Resorts, a JV with a subsidiary of Living Gems Lifestyle Resorts • First two resort
Slide 13: About GemLife
About GemLife Bribie Island and Highfields projects • Achieved strong positive response from buyers • Bribie Island – 404 homes on a 24.9-hectare site including a 9.5- hectare lake • GemLife Highfields – 233 homes on a 9-hectare site • First occupants for both projects are expected to move in by mid
Slide 14: About GemLife: Living Gems
About GemLife Living Gems • Owned by the Puljich family who has a more than 30-year track record of owning and running Living Gems • Completed five resorts and 1,171 home sites under its management • Won several awards including the International Over 50s Housing Awards’ Most Outstanding Active Life
Slide 15: Investment Project Highlights Australia: Newstead Series
Investment Project Highlights Australia 2015 Newstead Series Project - Luxury residential project in Brisbane - Funded up to A$32.2 million Project Update − Project proceeding on time and budget − Construction undertaken by one of Australia’s leading builders − Close to 90% of the 300 units have bee
Slide 16: Investment Project Highlights Australia: Sanctuary Cammeray
Investment Project Highlights Australia 2014 Sanctuary Cammeray - Residential project in Sydney - Investment of S$6.8 million - Construction expected to be completed June 2017 Project Update - Project on budget but behind schedule - High end, unique apartment product; all stock offered fully pre-sol
Slide 17: GLNG Gladstone Housing Project
Investment Project Highlights Australia GLNG Gladstone Housing Project • The GLNG consortium invested A$16 billion in infrastructure to process coal seam gas into liquified natural gas in the Gladstone and surrounding regions. • GLNG consortium includes Santos, Petronas, Total and KoGas 16
Slide 18: GLNG Gladstone Housing Project Updates
Investment Project Highlights Australia GLNG Gladstone Housing Project Project Updates - TCL currently owns 101 houses in Gladstone which are on lease to the GLNG consortium until June 2020 - These houses are currently valued at S$52.2 million and provide strong cashflow in terms of good yield and s
Slide 19: Investments in Japan
Investments in Japan • S$18.7 million carrying value at 31 Dec 2016 • Focuses mainly on commercial properties • Projects and property investments in Osaka 18
Slide 20: Investment Project Highlights Japan: Hotel Oaks
Investment Project Highlights Japan 2016 Hotel Oaks Reaze Tsukamoto - First hotel property acquired in Nov 2016 - No additional equity invested by the Group – financed almost entirely through uplift in value of 2 commercial buildings in Osaka Project Update - 100% leased - Negotiating change of oper
Slide 21: Investment Project Highlights Japan: Yotsubashi Buildings
Investment Project Highlights Japan 2014 Dai-ichi Jyuken Yotsubashi Building & Yotsubashi Nakano Building - Acquired for a total of S$42 million in Oct 2014 Project Updates - Fully occupied - Improved occupancy and return rates resulting in improved yield - Strong uplift in asset value since acquisi
Slide 22: Investment Updates Other Regions in Asia
Investment Updates Other Regions in Asia • Portfolio of warehouse properties in Hong Kong and commercial and residential properties in China valued at S$52 million • Hong Kong warehouse building (partly-owned) situated on the waterfront in a district undergoing residential redevelopment • Land price
Slide 23: Investment Division Outlook for 2017
Investment Division Outlook for 2017 • 4 sites currently under contract and in due diligence stage and 2 further sites under evaluation in the GemLife business • Expect 3 projects including Sanctuary Cammeray, FV and Newstead to complete in FY2017 or early FY2018 – funds to be recycled into new proj
Slide 24: Lifestyle Division
Lifestyle Division 23
Slide 25: Lifestyle Division Key Highlights
Lifestyle Division Key Highlights • Focusing on beauty, wellness and lifestyle brands, in Greater China • Building strong category and channel platforms to drive scale • Exploring value creation opportunities beyond distribution 24
Slide 26: Focus on Beauty, Wellness & Lifestyle
Focus on Beauty, Wellness & Lifestyle 100% Share of Revenue by Category (2013 – 2016)* CE B, W & LS 7.2% 90% 22.8% 80% 70% 58.4% 60% Net Sales % 87.1% 50% 92.8% 40% 77.2% 30% 20% 41.6% 10% 12.9% 0% Year 2013 2014 2015 2016 *Note: Data is for sales for China excluding certain low margin business 25
Slide 27: Key Brands
Key Brands Beauty Wellness Lifestyle 26
Slide 28: Key Channel Partners
Key Channel Partners E-commerce Prestige Beauty Premium Mass Lifestyle Beauty 27
Slide 29: Creating Scalable Channel Platforms (Sephora)
Creating Scalable Channel Platforms (Sephora) 2014 2015 2016 2017 • Refa • Refa • Refa • Refa Thakral • Leaders • Leaders • Leaders Managed • Sixpad • Sixpad • Lu Ming Tang Brands in • Color Me (April Sephora launch) Number of Stores Covered Thakral Annual Sales Thakral Account Team 28 Sales w/ Seph
Slide 30: Lifestyle Division Outlook for 2017
Lifestyle Division Outlook for 2017 • Main focus is on sales of our current portfolio of brands • Selectively adding new brands for distribution • Deepening relationships with key channels, in particular Tmall, Sephora and Watsons 29
Slide 31: Lifestyle Division Outlook for 2017
Lifestyle Division Outlook for 2017 • Strengthening our China cross-border footprint • Exploring opportunities to participate in beauty brand or beauty e-commerce platform creation, as a ‘value added’ co- investor 30
Slide 32: Financial Results – FY2016
Financial Results – FY2016 31
Slide 33: Key Highlights of FY2016
Key Highlights of FY2016 • Revenue – S$214.9 million • Profit before tax – S$4.2 million • Net profit – S$3.4 million • Interim dividend paid in Dec 2016 – S$2.6 million 32
Slide 34: Financial Snapshot
Financial Snapshot FY2016 FY2015 Variance/Change Revenue (S$’000) 214,893 331,326 -35% Gross Profit (S$’000) 45,249 33,103 37% Net Profit (S$’000) 3,444 8,633 -60% Gross Margin 21% 10% +11 points Net Margin 1.6% 2.6% -1 point EPS 0.32 cent 4.65 cents -93% NAV 73.72 cents 73.57 cents NM 33
Slide 35: 3-Year Revenue Track
3-Year Revenue Track 600,000 499,857 500,000 Revenue (S$’000) 400,000 331,326 300,000 214,893 200,000 100,000 0 2014 2015 2016 Year 34
Slide 36: 3-Year Gross Profit Track
3-Year Gross Profit Track 50,000 45,249 45,000 40,000 Gross Profit (S$’000) 35,000 33,103 30,000 25,000 24,047 20,000 15,000 10,000 5,000 0 2014 2015 2016 Year 35
Slide 37: 3-Year Gross Margin Track
3-Year Gross Margin Track 25.00% 21.1% 20.00% Gross Margin 15.00% 10.0% 10.00% 4.8% 5.00% 0.00% 2014 2015 2016 Year 36
Slide 38: 3-Year Net Profit
3-Year Net Profit 10000 9000 8,633 ** 8000 Net Profit (S$’000) 7000 6000 5000 4000 3,444 *** 3000 2000 843 * 1000 0 2014 2015 2016 Year * Including net valuation gain of S$2.9 million ** Including net valuation gain of S$9.9 million *** Including net valuation loss of S$7.3 million 37
Slide 39: Key Financial Ratios
Key Financial Ratios FY2016 - Current ratio – 1.46 - Quick ratio – 1.26 - ROA – 2.9% - ROE – 0.4% - Return on Assets - Profit After Tax for the year divided by Average Net Assets - Return on Equity - Income available to Equity Shareholders for the year divided by Average Shareholder’s Funds 38
Slide 40: Thank You
Thank You For further enquiries, please contact: Thakral Corporation Ltd Ms Stephanie Tay (stephanie.tay@thakralcorp.com.sg) Tel: (65) 6336 8966 Website: www.thakralcorp.com Stratagem Consultants Pte Ltd Ms Tham Moon Yee (tmy@stratagemconsultants.com) Mr Soh Tiang Keng (sohtk@stratagemconsultants.co