Aseana Properties Limited · LSE:ASPL
Aseana Properties — Investor Presentation (May 2011)
42 slides from Aseana Properties's investor presentation, May 2011
Slide 1: Aseana Properties Limited Corporate Presentation
ASEANA PROPERTIES LIMITED Corporate Presentation May 2011 Strictly confidential 1
Slide 2: Disclaimer
DISCLAIMER The information contained in this confidential document (the “Presentation”) has been prepared by Aseana Properties Limited (the “Company”). It has not been fully verified and is subject to material updating, revision and further amendment. This Presentation does not constitute or form an
Slide 3: Overview
OVERVIEW Aseana Properties is an upmarket property developer in the emerging markets of Southeast Asia Admission date 5 April 2007 on London Stock Exchange Main Market Geographical Focus Malaysia and Vietnam Investment Focus Upscale residential, commercial and mixed developments Typical Investment E
Slide 4: Investment Case
INVESTMENT CASE Aseana Properties provides a unique opportunity for investors to be part of the real estate growth story in Malaysia and Vietnam The fundamentals of Malaysia and Vietnam remain strong, with a growing young middle class population and continued high level of foreign direct investment
Slide 5: The Company
THE COMPANY Aseana Properties operates within the parameters of these business principles to maximise returns of each development project Diversifying to Current fund allocation: 60% Malaysia and 40% Vietnam generate attractive Seeks to invest in projects yielding annualised ROE of greater than 30%
Slide 6: Our Competitive Strengths
OUR COMPETITIVE STRENGTHS Aseana Properties and the Development Manager are well positioned to harness development opportunities in Malaysia and Vietnam THE COMPANY THE DEVELOPMENT MANAGER An attractive property portfolio Backed by sound track record of project delivery Twelve projects at different
Slide 7: The Development Manager
THE DEVELOPMENT MANAGER Ireka Development Management is the exclusive development manager of Aseana Properties and a wholly-owned subsidiary of Ireka Corporation Berhad Incorporated in January 1967 Listed on Malaysian Bourse in 1993 Revenue for nine months ended 31 Dec 2010 of RM309 million (~ US$97
Slide 8: Overview of Malaysia & Vietnam
OVERVIEW OF MALAYSIA & VIETNAM Malaysia & Vietnam shares common characteristics that will continue to drive the growth of real estate in coming years Malaysia Vietnam 2010 GDP Growth: 7.2% 2010 GDP Growth: 6.8% Population (2010): 27.57 million Population (2010): 89.57 million 66% of population under
Slide 9: The Property Portfolio
THE PROPERTY PORTFOLIO No. Project Location Expected GDV Type Effective Status (US$ m) Ownership Structure 1 Tiffani by i-ZEN Kuala Lumpur, 118 Luxury 100% ASPL - 95% sold Malaysia condominiums - Completed August 2009 2 1 Mont’ Kiara by Kuala Lumpur, 166 Office Tower, 50% ASPL, - 100% sold i-ZEN Mal
Slide 10: The Property Portfolio
THE PROPERTY PORTFOLIO No. Project Location Expected Type Effective Status GDV Ownership (US$ m) Structure 3 Sandakan Sandakan, 141 Retail Lots, 100% ASPL - Phase 1: 100% sold Harbour Sabah, Retail Mall & - Phase 2: 93% sold Square Malaysia Four Points by - Phases 3 & 4: Expected completion Q4 Shera
Slide 11: The Property Portfolio
THE PROPERTY PORTFOLIO No. Project Location Expected Type Effective Status GDV (US$ m) Ownership Structure 5 Kuala Lumpur Kuala Lumpur, 249 Two office towers 40% ASPL, - 100% sold Sentral Office Towers Malaysia and a business- 60% MRCB - Completion end 2012 & Hotel class hotel 6 aloft Kuala Lumpur K
Slide 12: The Property Portfolio
THE PROPERTY PORTFOLIO No. Project Location Expected Type Effective Ownership Status GDV Structure (US$ m) 7 KLCC Kia Peng Kuala 79 Luxury 70% ASPL, - Launching and construction expected Residential Lumpur, Residences 30% ICB to commence in H2 2011; completion Project Malaysia expected in 2015 8 Sea
Slide 13: The Property Portfolio
THE PROPERTY PORTFOLIO No. Projects Location Expected Type Effective Status GDV Ownership (US$ m) Structure 1 International Binh Tan 770 Commercial 51% ASPL, - Commenced construction of Phase 1: Hi-Tech District, and residential 49% Hoa Lam City International Hospital; entered into Healthcare Ho Chi
Slide 14: The Property Portfolio
THE PROPERTY PORTFOLIO No. Projects Location Expected Type Effective Status GDV Ownership (US$ m) Structure 2 Queen’s Place District 4, Ho 195 Mixed 65% ASPL, - Resettlement planning underway Chi Minh City, residential, 35% Binh Duong - Expected sales launch and Vietnam office and retail Corporation
Slide 15: The Property Portfolio
THE PROPERTY PORTFOLIO No. Projects Location Expected Type Effective Status GDV Ownership (US$ m) Structure 4 Tan Thuan Dong District 7, Ho 120 High-rise 80% ASPL, - Expect to secure development approvals in Q3 Project Chi Minh City, apartments 20% Nam Long 2011 Vietnam - Expected sales launch and c
Slide 16: Key Developments for Aseana for FY2010 and Year to Date
KEY DEVELOPMENTS FOR ASEANA FOR FY2010 AND YEAR TO DATE Projects Development Tan Thuan Dong Project Terminated agreement with PRUPIM Vietnam Property Fund, managed by (May 2011) Prudential Property Investment Management due to unforeseen delays in fulfilling the conditions of the agreement including
Slide 17: Key Developments for Aseana for FY2010 and Year to Date
KEY DEVELOPMENTS FOR ASEANA FOR FY2010 AND YEAR TO DATE Projects Development 1 Mont’ Kiara Completed construction of mixed office and retail development with Certificate (November 2010) of Fitness obtained 1 Mont’ Kiara Realised investment in a 20-storey office tower block and five-storey retail mal
Slide 18: Financial Highlights: Income Statement (1)
FINANCIAL HIGHLIGHTS: INCOME STATEMENT (1) Year ended Year ended 31 December 2010 31 December 2009 (US$ mil) (US$ mil) Revenue 1 179.34 115.26 Cost of sales 2 (177.18) (100.75) Gross (loss) / profit 2.16 14.51 Management fees (3.99) (4.20) Marketing expenses 3 (10.04) (4.79) Other operating expenses
Slide 19: Financial Highlights: Income Statement (2)
FINANCIAL HIGHLIGHTS: INCOME STATEMENT (2) Notes: 1. Revenue was attributable mainly to 1 Mont’ Kiara project (US$166.3million), which was completed in November 2010 2. Cost of sales included write down of cost of acquisition of US$29.6 million, mainly of 1 Mont’ Kiara of US$22.3 million 3. Marketin
Slide 20: Financial Highlights: Balance Sheet (1)
FINANCIAL HIGHLIGHTS: BALANCE SHEET (1) Year ended Year ended 31 December 2010 31 December 2009 (US$ mil) (US$ mil) Non-current assets 1 63.12 42.64 Current assets 2 613.74 486.17 TOTAL ASSETS 676.86 528.81 Shareholders’ equity 192.87 205.07 Non-controlling interest 4.34 4.37 TOTAL EQUITY 197.21 209
Slide 21: Financial Highlights: Balance Sheet (2)
FINANCIAL HIGHLIGHTS: BALANCE SHEET (2) Notes: 1. Non-current assets included deferred tax assets of US$19.4 million, which arose from the tax paid on deferred revenue and project cost accruals, which would be offset against future tax payable when the project profit is recognised 2. Total current a
Slide 22: Summary of Debt
SUMMARY OF DEBT Outstanding Total Debt Unutilised as at Remarks Project Name Limit Debt 31 Dec 2010 (US$) (US$) (US$) 1 Mont’ Kiara by i-ZEN 79.4 6.5 72.9 Medium term notes issued for the development of the project were fully redeemed on 6 January 2011 Sandakan Harbour Square 68.7 31.1 37.6 Term loa
Slide 23: Valuation Methodology
VALUATION METHODOLOGY To enhance disclosure, Aseana has updated its Valuation Methodology In addition to the disclosure of NAV under accounting standards, which does not allow for upwards revaluation of partially completed developments, Aseana provides an estimate of the current project valuation th
Slide 24: Valuation Methodology
VALUATION METHODOLOGY Aseana has valued each project using the following valuation basis for the RNAV calculation At Net Asset Value At Market Value At Market Value (Cost / Fair Value Basis) (Discounted Cash Flow Method) (Residual / Comparison Method) Tiffani by i-ZEN Sandakan Harbour Square Kota Ki
Slide 25: Net Asset Value and Realisable Net Asset Value Details (1)
NET ASSET VALUE AND REALISABLE NET ASSET VALUE DETAILS (1) Project NAV Project RNAV Project RNAV Projects as at (before) as at (after) as at 31 December 2010 31 December 2010 31 December 2010 US$’mil US$’mil US$’mil Malaysian projects: Tiffani by i-ZEN 5.13 5.13 1 5.13 1 1 Mont’ Kiara 15.49 18.10 2
Slide 26: Net Asset Value and Realisable Net Asset Value Details (2)
NET ASSET VALUE AND REALISABLE NET ASSET VALUE DETAILS (2) Project NAV Project RNAV Project RNAV Projects as at (before) as at (after) as at 31 December 2010 31 December 2010 31 December 2010 US$’mil US$’mil US$’mil Total Project NAV/RNAV, b/f 169.33 249.26 221.08 Cash and bank 24.11 24.11 24.11 Oth
Slide 27: Net Asset Value and Realisable Net Asset Value Bridge (1)
NET ASSET VALUE AND REALISABLE NET ASSET VALUE BRIDGE (1) RNAV per share = US$1.151 NAV per share 51.75 244.62 = US$0.908 169.33 (0.57) 192.87 24.11 Cash Projects Net Other Total NAV as at Unrealised Total RNAV as Assets & 31 Dec 10 Gain at Liabilities 31 Dec 10 Note: Please see Appendix for explana
Slide 28: Net Asset Value and Realisable Net Asset Value Breakdown
NET ASSET VALUE AND REALISABLE NET ASSET VALUE BREAKDOWN As at 31 December 2010 Total NAV : US$192.87 million Total RNAV :US$244.62 million Other Other Assets & Cash at Assets & Cash at Liabilities Company, Liabilities Company, (Net), -0.3% 9.9% (Net), -0.2% 12.5% Vietnam, Vietnam, 21.3% 18.7% Malay
Slide 29: FY2011 Outlook
FY2011 OUTLOOK Year 2011 will see the completion of two key projects in Aseana‘s portfolio, with other projects progressing as planned Positive GDP and FDI outlook for Malaysian and Vietnamese economies with a young growing middle class population - Some short term challenges in Vietnam property mar
Slide 30: Appendices
APPENDICES (30) Strictly confidential
Slide 31: Aseana Properties Share Price Chart
ASEANA PROPERTIES SHARE PRICE CHART As at 31 December 2010 0.7 4000 Aseana FTSE All Share 3500 0.65 FTSE 350 Real Estate Volume 3000 0.6 2500 Share price (US$) Volume (000's) 0.55 2000 1500 0.5 1000 0.45 500 0.4 0 Jan 10 Feb 10 Mar 10 Apr 10 May 10 Jun 10 Jul 10 Aug 10 Sep 10 Oct 10 Nov 10 Dec 10 Hi
Slide 32: The Company Structure
THE COMPANY STRUCTURE Company Structure Jersey incorporated, London Listed Equity Investors Number of shares in issue 212,525,000 ordinary shares Tax Structure Tax resident of Jersey and is subject to a Independent Non- tax rate of 0%, project companies are tax Executive Board residents in Malaysia
Slide 33: The Company
THE COMPANY ASPL is governed by a strong and experienced independent Board of Directors Mohammed Azlan Hashim was appointed as Chairman (Non-Executive) of Aseana Properties in March 2007. Currently, Azlan is also Non-Executive Chairman of Parkway Holdings Limited, Asiasons Capital Limited and Asiaso
Slide 34: The Company
THE COMPANY ASPL is governed by a strong and experienced independent Board of Directors David Harris was appointed as Director (Non-Executive) of Aseana Properties in March 2007. David is currently Chief Executive of InvaTrust Consultancy Ltd, a company that specialises in the provision of investmen
Slide 35: The Company
THE COMPANY ASPL is governed by a strong and experienced independent Board of Directors John Lynton Jones was appointed as Director (Non-Executive) of Aseana Properties in March 2007. Lynton is chairman of Bourse Consult, a consultancy that advises clients on initiatives relating to exchange trading
Slide 36: The Management Team
THE MANAGEMENT TEAM The Manager of Aseana Properties is led by a team of personnel with hands- on property development and sound professional experience Voon Hon, Lai CEO/President of Ireka Development Management Sdn. Bhd. (“IDM”) and Executive Director of Ireka Corporation Berhad (”ICB”). An archit
Slide 37: The Management Team
THE MANAGEMENT TEAM The Manager of Aseana Properties is led by a team of personnel with hands- on property development and sound professional experience Hiew Beng, Low Country Head in Vietnam. Prior to joining Ireka, he was a Senior Engineering Manager with a property development company in Dubai, U
Slide 38: Our Partners
OUR PARTNERS CapitaLand is one of Asia's largest real estate companies. Headquartered and listed in Singapore, the multinational company's core businesses in real estate, hospitality and real estate financial services are focused in growth cities in Asia Pacific, Europe and the Gulf Cooperation Coun
Slide 39: Our Partners
OUR PARTNERS Nam Long Investment Corporation (“Nam Long”) is the leading private Vietnamese real estate developer and a recognized industry leader in township development. Established in 1992, Nam Long has over 17 years of experience in land banking and real estate development and is one of the firs
Slide 40: Key Media Articles
KEY MEDIA ARTICLES (40) Strictly confidential
Slide 41: Valuation Methodology
VALUATION METHODOLOGY The Realisable Net Asset Value of the Company as at 31 December 2010 has been computed by the Company based on the Company’s audited accounts for the year ended 31 December 2010 and the Market Values of the property portfolio as at 31 December 2010. The Market Value of the prop
Slide 42: Ireka Development Management Sdn. Bhd
Ireka Development Management Sdn. Bhd Malaysia Office: Vietnam Office: Level 18, Wisma Mont’ Kiara Suite 703, Floor 7, Fideco Tower 12 Castle Street St. Helier, Jersey No. 1, Jalan Kiara, Mont’ Kiara No. 81-85, Ham Nghi Street JE2 3RT 50480 Kuala Lumpur Nguyen Thai Binh Ward District 1, Channel Isla