Investor Presentation bridge to the golden land March 2012
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 occur, 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 Business Model Conglomerate approach to build a diversified portfolio of businesses in Myanmar in conjunction with our affiliate, the SPA Group Enhance and Expand Existing Business Areas Real Estate Agriculture Automobile Dealership Growth Strategy Expand into other SPA Group Partnerships with Organic Business Expansion Businesses International Groups 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 Areas that Yoma Strategic – Agriculture is currently involved in – Automobile – Financial Services – Manufacturing – Services 6
Business Overview High-end bungalows in Pun Hlaing Golf Estate
Main Business Segments Real Estate Agriculture Automobile Dealership 8
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 Sales of land lots to buyers to build their private villas • Rights (LDRs) Economic benefit to YSH: 70% of sales value Sales of properties • 10 units of modern 3-bedroom townhouses - Ivory Court Residences I • Economic benefit to YSH: 100% of sales value • 5 blocks with a total of 96 condominium units - Lakeview Apartments • 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 18 th 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 out • 2 units were sold in Block E
FMI City 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. Sales of land lots • Sales of LDRs in Orchid Offer land lots to buyers to build their private houses • Garden Economic benefit to YSH: 52.5% of sales value Sales of properties • Developing 45 houses with FMI Garden Development Company Limited and an independent alternative investment Fontana Project management firm • Economic benefit to YSH: 52.5% of sales value
FMI City – Orchid Garden • Orchid Garden is the last subdivision of FMI City • Total area approx 1.34 million sq ft of LDRs (equivalent to approx. 174 plots of 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
Star City Artist impressions of Star City • 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 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
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