golden land March 2012 Disclaimer This presentation may contain - - PowerPoint PPT Presentation

Investor Presentation

March 2012

bridge to the

golden land

Disclaimer

This presentation may contain forward-looking statements which can be identified by the context of the statement and generally arise when the Company is discussing its beliefs, estimates or

• expectations. Readers of this document should understand that these statements are not historical

facts or guarantees of future performance and are subject to significant risks, uncertainties and other factors, many of which are outside of the Company’s control. The Company cautions readers not to place undue reliance on any statements included in this document; and should any of the events anticipated by the forward-looking statements transpire or

• ccur, the Company makes no assurances on what benefits, if any, the Company will derive there

from. Shareholders and potential investors are advised to act cautiously when dealing with their shares in the Company and when doing so, should carefully read all announcements by the Company. If in doubt about the action that they should take, shareholders and potential investors should seek advice from their stockbrokers, bankers, solicitors, accountants, tax advisers or other professional advisers.

For further information, please contact: Mr Gerald Woon / Ms Shirley Wong woon@cogentcomms.com/shirley@cogentcomms.com + 65 6323 1060 2

Contents

• About Us
• Business Overview
• Financial Review
• Bridge to the Golden Land
• Questions and Answers

3

About Us

Ivory Court Residences – Townhouses in Pun Hlaing Golf Estate

Business Model & Strategy

Growth Strategy

Organic Business Expansion Expand into other SPA Group Businesses Partnerships with International Groups

Enhance and Expand Existing Business Areas

Real Estate Agriculture Automobile Dealership

Business Model

Conglomerate approach to build a diversified portfolio of businesses in Myanmar in conjunction with our affiliate, the SPA Group

5

Affiliation with SPA Group

• Yoma Strategic and the SPA Group (www.spa-myanmar.com)

share the same major controlling shareholder, Mr Serge Pun

• The SPA Group has >20 years of experience in doing

businesses in Myanmar

• Flagship company of group is First Myanmar Investment

Company Limited (FMI)

• SPA Group involved in six business segments:

– Real Estate – Agriculture – Automobile – Financial Services – Manufacturing – Services

6

Areas that Yoma Strategic is currently involved in

Business Overview

High-end bungalows in Pun Hlaing Golf Estate

Main Business Segments

8

Agriculture Real Estate Automobile Dealership

Pun Hlaing Golf Estate (PHGE)

A 637-acre residential development located between the Hlaing and the Pan Hlaing Rivers in the township of Hlaing Tharyar, 8 miles west Yangon. It surrounds an 18- hole Gary Player signature golf course with a country club, international school and hospital on the premises.

Sales of land lots Sales of Land Development Rights (LDRs)

• Sales of land lots to buyers to build their private villas
• Economic benefit to YSH: 70% of sales value

Sales of properties

• Ivory Court Residences I
• 10 units of modern 3-bedroom townhouses
• Economic benefit to YSH: 100% of sales value
• Lakeview Apartments
• 5 blocks with a total of 96 condominium units
• Economic benefit to YSH: 100% of sales value

PHGE – LDRs

• As at 31 Dec 2011, approx. 5.84

million sq ft (equivalent to approx. 249 plots of land) available for sale

• LDRs over these plots of land were

injected at 7,005 kyats/sq ft in 2006 and are held at cost

PHGE – Ivory Court Residences I

• Ivory Court Residences - located in

heart of PHGE with prime views of the 18th fairway

• Total area of 93,925 sq ft (8,726 sq m)

in PHGE

• 10 units of modern 3-bedroom

townhouses (Approx. 3,412.11 sq ft built-up)

• All units sold to date
• Construction of 8 units completed
• 2 units will be completed at end of

March 2012

PHGE – Lakeview Apartments

• Lakeview Apartments are a self-

contained low rise condominium development in Northeast corner of PHGE

• Blocks A & B already built, Blocks C, D

& E under construction

• Block C fully sold and Block D – 8 out of

16 sold

• Sales of remaining 8 units being carried
• ut
• 2 units were sold in Block E

FMI City

Sales of land lots Sales of LDRs in Orchid Garden

• Offer land lots to buyers to build their private houses
• Economic benefit to YSH: 52.5% of sales value

Sales of properties Fontana Project

• Developing 45 houses with FMI Garden Development

Company Limited and an independent alternative investment management firm

• Economic benefit to YSH: 52.5% of sales value

FMI City is Myanmar’s first gated community, complete with its own sports and recreation centre, supermarket and wet market, bank and food stalls. It is situated on 465 acres of land, nine miles from the centre of Yangon and two miles from Yangon International Airport.

FMI City – Orchid Garden

• Orchid Garden is the last subdivision
• f FMI City
• Total area approx 1.34 million sq ft of

LDRs (equivalent to approx. 174 plots

• f land) available for sale as at 31 Dec

2011

• LDRs over these plots of land were

injected at 3,167 kyats/sq ft in 2006 and are held at cost

• Experiencing brisk sales of 45 houses

under Fontana project since launch

Project Management & Design

• Comprises SPA Design, Project

Management and PM Development

• Provides value-added design and

construction management, engineering, and architectural solutions

• Managing and consulting arm for

Group's real estate development and special projects

Agriculture

• 100,000 acres of contiguous

agricultural land on the Maw Tin estate in Ayerwaddy Division of Myanmar

• Jatropha Curcas is currently the main

agricultural product on the estate although accounting for <2000 acres

• Exploring additional agricultural uses

for the land e.g. rubber, eucalyptus, spices etc

• Have started planting black pepper

16

Automobile Dealership

• Exclusive dealership to import

Dongfeng Light Trucks from China

• Setting up facilities to support the

sales, spare parts and after-sales service

• Accelerating plan to implement future

assembly and manufacturing of trucks in Myanmar

17

China

City of Dalian, China

Grand Central

• Comprises an office building, a serviced

apartment building run by Sharma Group, and a shopping mall in Dalian DDA

• Restructuring stake from 27% non-

controlling interest in entire project to 100% ownership of the shopping mall – subject to shareholders’ approval

• After restructuring, YSH will own 30,089

sq m of shop rental space in the shopping mall

19

Proposed Acquisition of Star City

Artist impression of Star City – Aerial View

• Located in Thanlyin Township, approx 6 miles south-east of downtown Yangon
• Approx, 135 acres of development area to comprise > 9,000 units of apartments and

houses, shopping and commercial areas, targeted at middle-class population

• Properties along perimeter have view of Pun Hlaing Links golf course and features a

professional estate management system, 24-hour security, water supply, cleaning services, and a substation providing 24-hour electricity to all common areas

• Envisaged to have bus, taxi, and ferry line services to downtown Yangon

Star City

Artist impressions of Star City

21

Proposed Acquisition of Star City

• Proposed acquisition of 70% of economic interests of remaining LDRs at

acquisition price of S$91 million

• Via conditional deed of assignment (DOA) and joint development deed (JDD)

with subsidiaries of SPA Group – Yoma Strategic to design, construct, manage and operate Star City – YLC to obtain such other necessary governmental permits, licenses and approvals

• Valued at approximately S$132.1 million (average between independent valuers

Jones Lang LaSalle and Robert Khan & Co Pte Ltd)

• Pending shareholders’ approval

22

The above are all artist impressions of different aspects of Star City

Rationale for Proposed Acquisition

• Provides a development pipeline for next 6 – 8 years
• Opportune timing in view of recent political, social and

economic reforms in Myanmar

• Located close to the area expected to be the

designated Thilawa Special Economic Zone which should accelerate social and economic development in the Thanlyin Township area

Around Thanlyin township :

• Thilawa Port
• Three local universities
• Kyaik Kauk Pagoda
• Thanlyin Bridge (20 mins drive to

downtown Yangon)

• Connections to the country’s

major highways 23

Proposed Rights Issue

• Non-underwritten 4 for 5 rights issue of up to 422,117,874 Rights Shares
• Rights price set at S$0.24 cents per share representing a 39.2% discount to the

closing price on 10 Feb 2012, the last day the shares traded before the announcement of the rights issue

• Serge Pun to subscribe and pay for his direct and indirect pro rata entitlements

to 211,148,414 Rights Shares and will subscribe for up to an additional 168,018,254 Rights Shares to the extent not taken up

• Raising approx. S$100m after expenses

– S$91m for Proposed Acquisition – S$5m for loan to TED under terms of DOA – Balance for working capital

• Pending shareholders’ approval

24

Financial Review

Lakeview Apartments – Condominiums in Pun Hlaing Golf Estate

Summary

• Revenue increased 495.3% to S$9.8m in 3QFY2012 from S$1.7m in

3QFY2011

• Net profit rose to S$1.4 million compared to a net loss of S$0.5m

in 3QFY2011

• Increased sales of housing and LDRs contributed S$9.1m in

revenue (S$7.7m from LDRs and S$1.4m from housing)

• 9MFY2012 net profit S$3.9m > FY2011 net profit of S$2.8m

26

Financial Performance

4.6 11.2 3.6 23.0 0.5 2.8

• 1.0

3.9

• 5.0

0.0 5.0 10.0 15.0 20.0 25.0 FY10* FY11* 9MFY11 9MFY12

Revenue Net Profit 27

9MFY2012 revenue increased 542.5% to S$23m Recovered from 9MFY2011 net loss of S$1m to net profit of S$3.9m in 9MFY2012

S$ ‘million

• Excludes results of the operations of Myanmar V‐Pile Co Ltd and its subsidiaries and First

Myanmar Construction Co Ltd which were disposed on 3 Dec 2010.

Segmental Breakdown

Sales of housing and LDR 93.08% Agriculture 0.31% Construction related services* 4.27% Automobile Dealership 2.34%

3QFY2012

28

Sales of housing and LDR 87.88% Agriculture 1.82% Construction related services* 10.30%

3QFY2011

*Construction related services refers to the Design and Project Management business of Yoma Strategic Holdings

Profit & Loss

S$’000 3QFY2012 3QFY2011 9MFY2012 9MFY2011 FY2011(2) FY2010(2) Continuing Operations Revenue 9,834 1,652 23,048 3,587 11,217 4,644 Cost of Sales (7,311) (1,172) (16,910) (2,509) (8,605) (3,023) Gross Profit 2,523 480 6,138 1,078 2,612 1,621 Other income 108 102 551 441 560 660 Expenses and Costs (1,278) (1,146) (3,238) (3,231) (4,539) (3409) Share of Profit in Associates

• 104
• 1
• 15

136 3,530 739 Profit/(Loss) before taxation 1,249 (565) 3,436 (1,576) 2,163 (389) Taxation 88 6 408 258 180 13 Profit/(Loss) from continuing operations 1,337 (559) 3,844 (1,318) 2,343 (376) Discontinued Operations (1) Profit from discontinued operations

• 97
• 288

288 1,932 Total Group Profit/(Loss) 1,337 (462) 3,844 (1,030) 2,631 1,556 Net profit attributable to: Equity holders of the company 1,357 (471) 3,938 (1,041) 2,789 525 Non controlling interest (20) 9 (94) 11 (158) 1,031 1,337 (462) 3,844 (1,030) 2,631 1,556

Financial Summary Table

Selected Balance Sheet Items

31 Dec 2011 31 Mar 2011 Cash & cash equivalents 16,513 2,509 Trade and other receivables 2,986 3,991 Inventories 2,089 1,529 Property under development 6,840 2,567 Current Assets 29,705 11,018 Investments in associated company

• 33,302

Operating rights 12,056 12,445 Land Development Rights 63,357 73,395 Total Assets 150,481 138,825 Total Liabilities 13,854 8,742 Net Assets 136,627 130,083 Shareholder’s Equity 137,007 130,366

Per Share Statistics

3QFY2012 3QFY2011 3QFY2012 2QFY2012 NAV Per Share (SG cents)* 25.9 24.0 25.9 25.5 Earnings Per Share (SG cents)* 0.26 (0.10) 0.26 0.26

* NAV Per Share and EPS is based on the weighted average number of 527,647,000 shares

Bridge to the Golden Land

Myanmar – The Golden Land

Total Area: 676,578km2 Total Population: 53,999,804 (July 2011 est.) GDP Per Capita (PPP): US$1,400 (2010 est.) GDP Real Growth Rate: 5.3% (2010 est.) National Currency: Kyat Natural resources: petroleum, timber, tin, antimony, zinc, copper, tungsten, lead, coal, marble, limestone, precious stones, natural gas, hydropower

• 7th largest rice exporter in the

world (approx. 418,000 metric tonnes in 2011)

• Agriculture comprises 43.1% of

its GDP and employs 70% of workforce

• Produces precious stones such

as sapphires, pearls and jade and 90% of world's rubies come from Myanmar

• Natural beauty, sun blessed

beaches, countless pagodas

• ffer huge tourism potential
• Accounts for nearly one third of

world's total teak production, making wood and wood products one of its key industries

(CIA World Factbook,2011)

Major Developments in Myanmar

34

• Elections in November 2010
• ASEAN’s endorsement of Myanmar to be

ASEAN Chair in 2014

• National League for Democracy to re-register

as political party and participate in by- elections

• Positive sentiments from diplomatic visits

from the West

• Aung San Suu Kyi to participate in by-

elections in Myanmar

• US to restore diplomatic ties with Myanmar
• General amnesties of more than 650 political

prisoners

• Institution of new labour laws that allow

labour unions

• Relaxation of press censorship
• State visit to Singapore by President Thein

Sein

• Signing of MOU with Singapore in which

Singapore will assist Myanmar in economic development (providing training in trade facilitation, tourism development and promotion, central banking, English language and public governance)

• State visit to Myanmar by UN envoy of human

rights

• MOU between Singapore Business Federation

and Union of Myanmar Federation of Chambers of Commerce and Industry to boost investment flows, improved info exchange and IP protection

Moving Forward

In Summary

 Myanmar is on fast track to re-integrating with global economy  Yoma Strategic is one of the very few Myanmar-focused international stocks  Has strategic affiliation with SPA Group, a leading business conglomerate in Myanmar  Steadily expanding business portfolio in Myanmar  Strong turnaround of Yoma Strategic led by a buoyant property market in Myanmar  Taking a conglomerate approach to building businesses

36

Questions and Answers Thank you

37