Singapore Exchange Ltd. · SGX:S68
Singapore Exchange — Accordia Golf Trust — FY15/16 Earnings Presentation
36 slides from Singapore Exchange's earnings presentation, May 26, 2016
Slide 1: Financial Results for FY15/16
Financial Results for FY15/16 (1 April 2015 to 31 March 2016) 26 May 2016 Ver 3.0
Slide 2: Important Notice
Important Notice This presentation is intended solely for your information only and does not constitute an invitation or offer to acquire, purchase or subscribe for units (“Units”) in Accordia Golf Trust (“AGT” or the “Trust”). The information and opinions in this presentation are subject to change
Slide 3: Contents
Contents 1. Key Highlights 2. Financial Highlights and Capital Management 3. Portfolio Updates 4. Outlook 5. Appendix 3
Slide 4: Key Highlights
Key Highlights Financial and Capital Management Highlight • Full year distributable income stood at JPY6,041 million; Full year DPU at 6.63 Singapore cents. • FY15/16 Operating Income stood at JPY53,175 million; 4Q FY15/16 Operating Income rose 6.5% to JPY10,446 million, mainly contributed by favora
Slide 5: Financial Highlights and Capital Management
Financial Highlights and Capital Management 5
Slide 6: FY 15/16 & 4Q Key Financials
FY 15/16 & 4Q Key Financials JPY million Full Year (Apr to Mar) 4th Quarter (Jan to Mar) FY14/15 YoY change FY15/16 (from 1 Aug 2014, FY15/16 FY14/15 8 months)(1) (%) Operating Income 53,175 33,425 10,446 9,811 +6.5% -45.0% Operating Profit / (Loss) 8,828 4,063 (622) (1,131) (Improved) -20.1% Profit
Slide 7: FY15/16 Second Distribution
FY15/16 Second Distribution Distribution for the 2H FY15/16 (1 October 2015 to 31 March 2016 ) 4.31 Singapore cents Distributions will be paid in SGD on - 4.05 Singapore cents a semi-annual basis, with the Distribution Per Unit (100% of distributable amount for 2H FY15/16) amount calculated as at 31
Slide 8: FY15/16 Second Distribution
FY15/16 Second Distribution Historical Income Available for Distribution (JPY million) 1) Non-recurring cash flow consists of; Includes Non-recurring cash flow(1) a. savings from withholding tax expenses arising from the tax 6,000 credit granted on the Full FY15/16 JPY6,041 mil restructuring exercis
Slide 9: FY15/16 Second Distribution: DPU yield comparison
FY15/16 Second Distribution DPU yield comparison AGT DPU Yield: 11.1% Yield (%) 12.0 DPU of Full FY15/16: 6.63 Singapore cents AGT unit price as at 31 Mar 2016: 60 Singapore cents 10.0 11.1 8.0 6.0 7.2 4.0 3.3 2.0 0.0 AGT SREITs JREITs Source: AGT: Calculation is based on the full year DPU/Unit pric
Slide 10: Statement of Comprehensive Income
Statement of Comprehensive Income JPY million 1 Aug 2014 to YoY Mainly attributed to the 1 Apr 2015 to 31 favourable weather 31 Mar 2015 4Q FY15/16 4Q FY14/15 change Mar 2016 conditions. Higher (8 months)(1) (%) temperature during Operating Income 53,175 33,425 10,446 9,811 +6.5% winter season incre
Slide 11: Balance Sheet
Balance Sheet JPY million As at 31 March 2016 As at 31 March 2015 Current Assets 15,092 16,438 Property, Plant and Equipment 148,670 149,826 Intangible Assets 17,136 17,115 Other Non-current Assets 722 875 Total Assets 181,620 184,254 Borrowings from financial institutions 42,943 42,766 Other Curren
Slide 12: Capital Management
Capital Management Debt Profile as at 31 March 2016 (principal amount) Term Loan Lenders: • Mizuho Bank Term Loan A (Maturity in August 2017) JPY15 bil / T +1.25% (T: 6-month Yen TIBOR) • Sumitomo Mitsui Banking Term Loan B (Maturity in August 2018) JPY15 bil / T +1.50% Corporation • The Bank of T
Slide 13: Portfolio Updates
Portfolio Updates Test 13
Slide 14: Operating performance of the golf courses
Operating performance of the golf courses Number of visitors to AGT’s golf courses FY15/16 Number of Visitors (thousands) Utilization Rate(1) Actual YoY Change(2) Actual YoY Change(ppt)(3) 1Q 1,607 +2.6% 83.8% +2.2 ppt 2Q 1,489 -2.5% 77.2% -1.6 ppt 3Q 1,538 +5.6% 80.2% +3.4 ppt 4Q 1,173 +3.2% 69.5%
Slide 15: Operating performance of the golf courses
Operating performance of the golf courses Steady Number of Golf Plays in Japan • Number of play per golfer has been increasing(1), while decrease in overall population in Japan. • Play cost has been declined for a long term. • There are increases in senior plays(1). • The population of large cities
Slide 16: Number of Visitors under reservation
Number of Visitors under reservation Sound demand for golf was shown in the increased number of visitors in reservation(1) at beginning of month. Month-on-month changes in number of visitors making reservations(1) as at beginning of month (AGT’s 89 golf courses) 10.6% 10% 7.0% 5.7% 5% 4.1% 3.6% 3.4%
Slide 17: Stable Cash Flows
Stable Cash Flows • Actual Number of visitors for AGT’s golf courses remains stable over the years. • EBITDA(1) (based on JGAAP) reflects the stability of visitors regardless of unfavourable events. (1) (JPY billion) EBITDA Number of visitors million 16 7 14 5.61 5.69 6 5.42 5.45 5.53 5.81 12 5 10 4
Slide 18: Key Statistics of Initial Portfolio Golf Courses
Key Statistics of Initial Portfolio Golf Courses Number Appraisal Value Revenue for Utilisation NOI NOI Margin NOI Yield Regions of % as at 31 Dec 2015 % FY15/16 Rates FY15/16 FY15/16 FY15/16* FY15/16** Courses (JPY billion) (JPY billion) (%) (JPY billion) (%) (%) (1) (2) (3) (4) Greater 35 39.3 73.
Slide 19: Monthly Number of Visitors and Utilization Rate
Monthly Number of Visitors and Utilization Rate FY15/16 Number of Visitors (thousands) Utilization Rate(1) YoY Change 3 Year Average 3 Year Average Actual YoY Change(2) Actual Percentage Point Percentage Point Change(3) (ppt)(4) (ppt) Change(5) Apr 491 -1.2% +1.2% 78.2% -0.8 ppt +0.6 ppt May 596 +3.
Slide 20: Outlook
Outlook Rist 20
Slide 21: Outlook
Outlook Steady Number of Golf Plays in Japan Expected to Continue • Number of play per golfer has been increasing, while decrease in overall population in Japan. • Sound Demand from Senior Players is expected to continue. Golf Remains a Popular Leisure and Sports • Golf continues to be a healthy lei
Slide 22: Appendix
Appendix 22
Slide 23: Market Environment
Market Environment Number of plays in Japan No of Plays Chart 1: Number of Play and Number of Plays Per Player No. of Play Number of plays in Japan (millions) per Player 140 14 No of Plays (mil) Over 70s No of Play per Player remains stable as the number of 12.0 plays per player has been 120 12 incr
Slide 24: Market Environment
1% 3% 5% 7% -5% -3% -1% Okinawa, Other Tokyo , Tokyo Source: Aichi, Nagoya Kanagawa, Tokyo Saitama, Tokyo Fukuoka, Other Shiga, Osaka Chiba, Tokyo Osaka, Osaka Hiroshima, Other Miyagi, Other Hyogo, Osaka kyoto, Osaka Okayama, Other Ishikawa, Other Tochigi, Tokyo Shizuoka, Other Ibaraki, Tokyo Popula
Slide 25: Market Environment
Market Environment Chart 4: Healthy Life Expectancy* in Japan 75 74.21 73.62 73.36 72.65 72.69 73 71 71.19 70.33 70.42 69 69.47 69.4 67 65 2001 2004 2007 2010 2013 Men Women Source: Ministry of Health, Labour and Welfare, Japan * Healthy Life Expectancy is a form of health expectancy that applies di
Slide 26: Operating Expenses
Operating Expenses JPY million 1 Aug 2014 to YoY 1 Apr 2015 to 31 Mar 2015 4Q FY15/16 4Q FY14/15 Change 31 Mar 2016 (8 months)(1) (%) Operating Expenses 44,347 29,362 11,068 10,942 +1.2% Golf Course Operating Cost Merchandise and Material Expenses 3,745 2,302 732 700 +4.6% Labour and Outsourcing Exp
Slide 27: Balance Sheet
Balance Sheet JPY million As at 31 Mar As at 31 Mar As at 31 Mar As at 31 Mar 2016 2015 2016 2015 Cash & Cash 11,238 12,317 Trade & Other Payables 5,099 5,104 Equivalents Trade and Other 2,391 2,315 Membership Deposits 10,142 9,778 Receivables Inventory 245 247 Borrowings from Financial 443 437 Inst
Slide 28: Distribution Statement
Distribution Statement JPY million 1 Aug 2014 to 1 Apr 2015 to 4Q 4Q YoY 31 Mar 2015 31 Mar 2016 FY15/16 FY14/15 Change (%) (8 months)(1) Profit After Tax 6,662 2,648 (744) (931) -20.1% (+) Depreciation & Amortisation Expenses 3,415 2,485 874 928 -5.8% (+) Interest and Other Finance Costs 1,687 1,29
Slide 29: Distribution Statement
Distribution Statement Changes in Working Capital +JPY3,762 million (4Q), +JPY102 million (Full Year) • Mainly due to the difference between accounting recognition of the annual membership fees and actual cash received. (JPY3 billion in 4Q). 3.0 Annual membership Revenue 2.5 Decrease in Other Curren
Slide 30: Seasonality in Operation, Accounting Profit and Cash Flows
Seasonality in Operation, Accounting Profit and Cash Flows Golf Seasonality (Image） Golf course business naturally has seasonality Operating Revenue Operating Profit High Season High Season Demand fluctuates according not only to Japanese seasons but also weather conditions, Middle Season e.g. • Rai
Slide 31: 89 Unique Japanese Assets: Golf Courses
89 Unique Japanese Assets: Golf Courses Portfolio under AGT Total Appraisal Value: JPY 150.984 billion(1) Other Regions No of Golf Courses 27 Greater Tokyo Region Appraisal Value (JPY billion) 21.159 No of Golf Courses 35 Appraisal Value (JPY billion) 73.658 Greater Osaka Region Greater Nagoya Regio
Slide 32: Trust Structure
Trust Structure Public Unitholders Accordia Golf Trust (AGT) - Business Trust 28.85% - Listed on Singapore Exchange (SGX-ST) on 1 August 2014 Manages AGT’s assets and Trustee-Manager liabilities Accordia Golf Trust Management Pte. Ltd. Shareholding 51% 49% Asset Manager TK Investment(1) Daiwa Real E
Slide 33: Strength of "Accordia" Brand Golf Course
Strength of "Accordia" Brand Golf Course Sponsored by the largest Golf Operator in Japan* (* by market share) Economies of Scale to bring about efficient operations Sponsor’s Efficient Golf Course Operation Effective Brand Management Strategy to Target Variety of Players Main Target: Middle
Slide 34: Strength of "Accordia" Brand Golf Course
Strength of "Accordia" Brand Golf Course Higher Number of Visitors Higher numbers of visitors would drive stable operating cash flows. Number of visitors per golf course is approximately 45% higher than national average in Japan. Reasons for the high number of visitors: ① 89 well-located golf
Slide 35: Strength of "Accordia" Brand Golf Course
Strength of "Accordia" Brand Golf Course A Large and Loyal Customer Base Loyalty Card Holders of Accordia Golf High Market Penetration Rate (millions) 4.14 4.14 million loyalty card holders (as at 31 March 2016). 3.78 0.17 approx. 57.5% of total number of golf players in Japan 0.32 0.18 (7.2 million
Slide 36: Thank You
Thank You Investor Contact: Takuya Nagano (Head of IR) Brenda Ng (Senior Manager, IR) +65 6592-1050 info@agtrust.com.sg For more information, please visit http://agtrust.com.sg/ 36