a fast-growing niche property developer with integrated...
TRANSCRIPT
A Fast-Growing Niche Property Developer With
Integrated Construction Capabilities
CORPORATE PRESENTATION March 2015
2
Disclaimer
IMPORTANT: You must read the following disclaimer before continuing. The following disclaimer applies to the attached document. You are advised to read this disclaimer carefully before accessing, reading or making any other use of the attached document. In accessing the attached document, you agree to be bound by the following terms and conditions, including any modifications to them from time to time, each time you receive any information from us as a result of such access. Confirmation of Your Representation: In order to be eligible to view the attached document, investors must not be a U.S. person (within the meaning of Regulation S under the Securities Act (as defined below)). The attached document is being sent at your request and by accepting the e-mail and accessing the attached document, you shall be deemed to have represented to us (1) that you are not resident in the United States (“U.S.”) nor a U.S. person, as defined in Regulation S under the U.S. Securities Act of 1933, as amended (the “Securities Act”) nor are you acting on behalf of a U.S. person, and the electronic mail address that you gave us and to which this email has been delivered is not located in the U.S., and (2) that you consent to delivery of the attached document and any amendments or supplements thereto by electronic transmission. By accepting this document, if you are an investor in Singapore, you (A) represent and warrant that you are either an institutional investor as defined under Section 4A(1) of the Securities and Futures Act, Chapter 289 of Singapore (the “SFA”), a relevant person as defined under Section 275(2) of the SFA or persons to whom an offer may be made pursuant to in Section 275(1A) of the SFA, and (B) agree to be bound by the limitations and restrictions described herein. The attached document has been made available to you in electronic form. You are reminded that documents or information transmitted via this medium may be altered or changed during the process of transmission and consequently none of OKH Global Ltd., OKH Capital Pte. Ltd., United Overseas Bank Limited, DBS Bank Ltd. or any person who controls any of them nor any of their respective directors, officers, employees, representatives or affiliates accepts any liability or responsibility whatsoever in respect of any discrepancies between the document distributed to you in electronic format and the hard copy version. Except with respect to eligible investors in jurisdictions where such offer is permitted by law, nothing in this electronic transmission constitutes an offer or an invitation by or on behalf of OKH Global Ltd., OKH Capital Pte. Ltd., United Overseas Bank Limited or DBS Bank Ltd. to subscribe for or purchase any securities, and access has been limited so that it shall not constitute in the United States or elsewhere a general solicitation or general advertising (as those terms are used in Regulation D under the Securities Act) or directed selling efforts (within the meaning of Regulation S under the Securities Act). The information in this document has not been independently verified. No representation or warranty expressed or implied is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of such information or opinions contained herein. The information contained in this document should be considered in the context of the circumstances prevailing at the time and has not been, and will not be, updated to reflect material developments which may occur after the date of the presentation. Neither OKH Global Ltd., OKH Capital Pte. Ltd. United Overseas Bank Limited, DBS Bank Ltd. nor any of its affiliates, advisers or representatives shall have any liability whatsoever for any loss howsoever arising, whether directly or indirectly, from any use, reliance or distribution of this presentation or its contents or otherwise arising in connection with this presentation. This document and the information contained herein is not an offer to sell securities in Singapore. This document is being furnished to you solely for your information on a confidential basis and may not be reproduced, redistributed or passed on, in whole or in part, to any other person. In particular, neither this document nor any copy thereof may be taken or transmitted or distributed, directly or indirectly into Canada, Australia or Japan to any resident thereof or into the United States. The distribution of this document in other jurisdictions may be restricted by law and persons into whose possession this document comes should inform themselves about, and observe, any such restriction. Any failure to comply with these restrictions may constitute a violation of the laws of any such other jurisdiction. By accepting this document you agree to be bound by the foregoing limitations. This document does not constitute or form part of an offer or invitation to sell or the solicitation of an offer or invitation to subscribe for any shares in the Company, neither shall it or any part of it form the basis of or be relied upon in connection with any contract or commitment whatsoever. This document may contain forward-looking statements that involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements of OKH Global Ltd., OKH Capital Pte. Ltd. and/or the Group to be materially different from any future results, performance or achievements expressed or implied by these forward-looking statements. None of the Group, its respective affiliates, advisors, representatives nor any other person is representing or warranting that the future results, performance or achievements of the Group will be as discussed in such forward-looking statements. OKH Global Ltd., OKH Capital Pte. Ltd. and the Group disclaim any responsibility, and undertake no obligation, to update or revise any forward-looking statements contained herein to reflect any changes in the expectations with respect thereto after the date of this document or to reflect any change in events, conditions or circumstances on which any such statements are based.
A fast-growing niche property developer
with integrated construction capabilities
Contents Page A fast-growing niche property developer
with integrated construction capabilities
No. Section
1 Corporate Snapshot
2 Business Overview - Property Development - Logistics Properties & Supply Chain Solutions - Integrated Construction Services
3 Competitive Strengths
4 Financial Highlights
5 Business Strategies
6 Investment Merits
3
4
CORPORATE SNAPSHOT
A fast-growing niche property developer
with integrated construction capabilities
Corporate Snapshot A fast-growing niche property developer
with integrated construction capabilities
Listed on the Main Board of the Singapore Stock Exchange, OKH Global Ltd. is a fast-growing property developer with integrated design-and-build capabilities. Combining innovative eco-friendly and aesthetic features within its property development projects, the Group has been accorded several business accolades and property awards. To further enhance its business model and diversify its revenue base, the Group has initiated various growth plans that are interlinked with its property development and integrated construction business activities.
109.12
24.48
223.12
243.05
16.11 -1.70
26.00
45.75
-50
0
50
100
150
200
250
300
FY2012 FY2013 FY2014 HY2015
S$ m
illio
n
Financial Year End: 30 June
Revenue
Net Profit
About OKH Global Ltd.
The Group’s financial performance may be significantly different in each financial period under review as it adheres to the accounting requirement known as the completion of contract (“COC”) method used for commercial and industrial properties.
2011 2012
5
Recent Corporate Highlights A fast-growing niche property developer
with integrated construction capabilities
FY2013 Listed successfully on SGX Mainboard – Placement Price of S$0.24 per share
Successfully bidded for an industrial land site at Loyang Way
Successfully bidded for a commercial site at Kim Yam road
Successfully bidded for an industrial land site at Buroh Crescent
Placement of 60 million new shares at a placement price of S$0.68 per share
Evia Capital Partners Pte Ltd invests S$10m in OKH’s subsidiary REPS
FY2014 Completed distribution in specie of the Group’s IT business to shareholders
Completed Primz BizHub & The Herencia
OKH GLOBAL CONTINUES GROWTH STRATEGY WITH NEW GROWTH CATALYSTS AND STRONGER BALANCE SHEET
HY2015 ZANA Capital invests S$8m in OKH’s subsidiary RCPS
Completed Woodlands Horizon
Completed investment in established supply chain provider Pan Asia Logistics
6
Established JV with Pan Asia Logistics to invest in logistics properties
7
BUSINESS OVERVIEW
A fast-growing niche property developer
with integrated construction capabilities
Market-Oriented Business Model
Property Development
A fast-growing niche property developer
with integrated construction capabilities
Logistic Properties & Supply Chain Solutions
Integrated Construction Services
8
Property Development
Premium Industrial Property
Development Build-for-Sale Projects Build-to-Lease Projects
Investment Holding
Property Development
A fast-growing niche property developer
with integrated construction capabilities
Recognising the growing demands of the industrial and manufacturing industries in land-scarce Singapore, the Group is focused on developing premium industrial and commercial developments with aesthetic and eco-friendly features. With its in-house design, engineering and construction team, the Group is able to provide businesses with various design, construction solutions and ownership structures in accordance to their financing requirements and budget.
Property Portfolio A fast-growing niche property developer
with integrated construction capabilities
Property Development Projects
Location
Status
Acquisition Price (S$ mil)
Gross Floor Area (sq ft)
% Sold
Leasehold Tenure
Seatown Industrial Centre
Tuas District Completed (2010) 5.20 274,352 100 N.M
A’Posh BizHub
Near Yishun MRT Completed (2012) 38.33 381,928 100 N.M
Primz BizHub Near Admiralty MRT
Completed (2014) 84.24 553,388 100 N.M
Woodlands Horizon Near Admiralty MRT
Completed (2014) 71.84 503,714 100 N.M
Ace@Buroh Tuas District Expected TOP in FY2016
39.01 475,780 22.77 30 years from Apr 2013
Loyang Enterprise Changi District Expected TOP in FY2016
61.37 555,000 24.50 30 years from Jun 2013
The intrinsic value of the Group’s development properties are further enhanced as nearby land prices are recently transacted at a premium
10
Investment Properties
Location
Status
Acquisition Price (S$ mil)
Gross Floor Area (sq ft)
% Leased
Leasehold Tenure
The Herencia River Valley District Completed (2013) N.M 220,186 89.3 9 years from Jan 2013
Tai Seng Link Paya Lebar Expected TOP in FY2015
23.30 116,681 For Own Use & Lease (75% to be
leased out)
30 years from Oct 2012
A’Posh BizHub A fast-growing niche property developer
with integrated construction capabilities
100% SOLD Key Features
Flatted factory development with duplex units comprising a total GFA of 381,928 sq ft
Adjacent to housing estates and many amenities
Strategically located within the Yishun Industrial Area
Full-length glass panels for natural light access and pillar-less interiors for space optimisation
TOP in June 2012 and was awarded - BCA Green Mark Gold Award - Asia Pacific Property Awards 2014 - International Property Awards 2014 - FIABCI Singapore Property Awards 2014
3.5km 9km 1.5km 20km 23km 27km
Yishun MRT
Seletar Expressway
Tampines Expressway
Seletar Aerospace
CBD Area
Changi Airport
1.5km
Northpoint Shopping Centre
15km
Central Expressway
11
PRIMZ BizHub A fast-growing niche property developer
with integrated construction capabilities
100% SOLD Key Features
380 factory units with a total GFA of 553,388 sq ft
Distinctive 9-storey business landmark in the North
Well-connected to major expressways and a short drive away from the Woodlands Causeway
Proximity to amenities at Admiralty Place, Causeway Point and Woodlands Civic Centres
TOP in June 2014
2km 2km 5km 8km 4km 800m 3km 17km 22km
Admiralty MRT
Seletar Expressway
Yishun MRT
Bt Timah Expressway
Malaysia
Seletar Aerospace
CBD Area
Changi Airport
Woodlands MRT
12
Woodlands Horizon A fast-growing niche property developer
with integrated construction capabilities
100% SOLD Key Features
Ramp-up building with a total GFA of 503,714 sq ft
287 strata-titled units and a wide range of convenient features such as direct vehicular access for up to 14-footer vehicle at every level and direct loading facilities
Well-connected to major expressways and a short drive away from the Woodlands Causeway
Proximity to amenities at Admiralty Place, Causeway Point and Woodlands Civic Centres
TOP in November 2014
2km 2km 5km 8km 4km 800m 3km 17km 22km
Admiralty MRT
Seletar Expressway
Yishun MRT
Bt Timah Expressway
Malaysia
Seletar Aerospace
CBD Area
Changi Airport
Woodlands MRT
13
Ace @ Buroh A fast-growing niche property developer
with integrated construction capabilities
On-going Project Key Features
Located at Buroh Crescent within the Tuas precinct and well-connected to major expressways with proximity to Tuas Second Link
Permissible gross plot ratio of 2.5 that can be developed into a maximum GFA of 475,780 sq ft
“Business 2 Zoning” development which is suitable for clean and light industries
ACE@Buroh will comprise 100 flatted-factory units and 1 canteen
Expected TOP in FY2016
14
Loyang Enterprise A fast-growing niche property developer
with integrated construction capabilities
Key Features
First B2 ramp-up strata-titled industrial development in the Loyang area
Unique dual-key concept comprising 102 factory units ranging from 3,000 to 14,680 sq ft each
Permissible gross plot ratio of 2.5 that can be developed into a maximum GFA of 555,000 sq ft
Direct vehicular access for up to 20-footer vehicle at every level and direct loading facilities
Expected TOP in FY2016
On-going Project
15
The Herencia A fast-growing niche property developer
with integrated construction capabilities
Key Features
Refurbishment-for-Lease Project
Located at 46 & 58 Kim Yam Road, The Herencia is situated in the vicinity of the popular Mohammad Sultan and Robertson Quay enclave
With an estimated lettable area of 220,186 sq ft, it is tenanted out as office space or commercial school
Completed refurbishment works in November 2013
16
89.3% LEASED
Tai Seng Link A fast-growing niche property developer
with integrated construction capabilities
Proposed OKH HQ Key Features
Walking distance to Tai Seng MRT Station and located within the Paya Lebar iPark
Permissible gross plot ratio of 2.5 that can be developed into a maximum GFA of 116,681 sq ft
“Business 2 Zoning” development which is suitable for clean and light industries
To benefit from the Urban Renewal Authority’s plans to develop the area as a vibrant work and play destination with exciting retail concepts
Expected TOP in FY2015
17
Logistics Properties & Supply Chain Solutions A fast-growing niche property developer
with integrated construction capabilities
18
Logistics Properties & Supply Chain Solutions A fast-growing niche property developer
with integrated construction capabilities
Joint venture with Pan Asia Logistics (“Pan Asia”) to develop, own and manage logistics properties • OKH Global owns 40% stake in the JV • JV has contributed positively to the earnings of the Group as a result of the recurring
rental income from the logistics properties in Singapore, Malaysia and Korea • Strong and reputable JV partner that has a strong clientele base such as Mercedes-
Benz, Siemens, VARTA, Panasonic, Porsche, BMW, VOLVO, BAYER, BASF, MTU and Continental
• Leverage on the strong presence of Pan Asia in Asia, the JV has the potential to extend its footprint across Asia, particularly in China
• JV will provide the potential for streams of construction contracts for OKH
19
Logistics Properties & Supply Chain Solutions A fast-growing niche property developer
with integrated construction capabilities
Details of the logistics properties in Singapore, Malaysia and Korea
Country Location
Gross Floor Area
(sq ft)
Valuation (as at 31 Dec 2014)
Leasehold Tenure Anchor Tenants
Foreign Currency SGD
Singapore Tuas Bay Drive 430,553 SGD 76 million 76 million 30 years from Sept 2012
MTU Asia (Main Tenant) Volvo
Malaysia Port of Tanjong Pelepas
424,078 RM 69 million 26.1 million 43 years from March 2012
BMW
South Korea Iljuk 220,635 KRW 39.2 billion 47.1 million Freehold Mercedes-Benz
20
Logistics Properties & Supply Chain Solutions A fast-growing niche property developer
with integrated construction capabilities
OKH Global ventures into integrated logistics & supply chain business serving European MNCs
• Acquisition of a 15% stake in Pan Asia, an established logistics and supply chain
solutions provider, for approximately S$21.5 million • Pan Asia has a diversified customer base of more than 1,000 customers, with a
primary focus on European MNCs • In FY2013, Pan Asia achieved a net profit of approximately S$27.8 million
21
Logistics Properties & Supply Chain Solutions A fast-growing niche property developer
with integrated construction capabilities
22
OKH Global Ltd.
Pan Asia Logistics Investments Holdings
Pte. Ltd.
Pan Asia Logistics Holdings Singapore
Pte. Ltd
Malaysia Logistic Property
Korea Logistic Property
Singapore Logistic Property
15%
40% 60%
100%
Shareholding Structure Overview
Integrated Construction Services
Integrated Construction Services
Building Construction
Alteration and Addition (A&A)
Civil & Structural Engineering
Solutions
LED Signage Solutions
Renewable Energy Solutions
Expanding Range of Integrated Construction Capabilities to Provide New Value-Added Solutions
A fast-growing niche property developer
with integrated construction capabilities
23
Track Record
Completed More Than 30 Public and Private Sector Projects Across Different Industries
A fast-growing niche property developer
with integrated construction capabilities
As at 31 December 2014, the Group’s outstanding construction order book stood at approximately S$65.41 million.
24
25
COMPETITIVE STRENGTHS
A fast-growing niche property developer
with integrated construction capabilities
Competitive Strengths A fast-growing niche property developer
with integrated construction capabilities
Leveraging on its construction expertise for its own property development projects
1
3 Established business relationships and extensive network
4 Experienced and dedicated management team
Capability in handling a wide spectrum of projects 2
5 Create interlinked business opportunities with its strategic growth initiatives
26
27
FINANCIAL HIGHLIGHTS
A fast-growing niche property developer
with integrated construction capabilities
Financial Snapshot A fast-growing niche property developer
with integrated construction capabilities
109.1
24.5
223.1
4.1
243.1
0
50
100
150
200
250
300
FY2012 FY2013 FY2014 HY2014 HY2015
S$ million
29.0
0.1
46.5
2.3
68.5
0
20
40
60
80
FY2012 FY2013 FY2014 HY2014 HY2015
S$ million
REVENUE GROSS PROFIT
16.1
-1.7
26.0
-6.5
45.8
-20
-10
0
10
20
30
40
50
FY2012 FY2013 FY2014 HY2014 HY2015
S$ million
NET PROFIT GROSS & NET MARGINS %
26.5
N.M
20.8
28.2
14.8
11.6
18.8
0
5
10
15
20
25
30
FY2012 FY2013 FY2014 HY2015
Gross Profit MarginNet Profit Margin
28
Balance Sheet Highlights A fast-growing niche property developer
with integrated construction capabilities
TOTAL ASSETS
207.2 177.5
296.4
183.1
8.4
8.7
27.3
28.1
0
50
100
150
200
250
300
350
FY2012 FY2013 FY2014 HY2015
Secured Unsecured
S$ million
22.5
52.0
84.2
58.4
0.0
20.0
40.0
60.0
80.0
100.0
FY2012 FY2013 FY2014 HY2015
S$ million
324.4
475.8
568.4
483.4
0
100
200
300
400
500
600
FY2012 FY2013 FY2014 HY2015
S$ million
TOTAL BORROWINGS
27.4
40.1
78.7
123.7
0
20
40
60
80
100
120
140
FY2012 FY2013 FY2014 HY2015
TOTAL EQUITY
TOTAL CASH AND CASH EQUIVALENT
S$ million
29
7.9
4.6 4.1
1.9
7.1
3.3 3.0
1.4
0
2
4
6
8
10
FY2012 FY2013 FY2014 HY2015
Total Borrowing/Equity Net Borrowing/Equity
Prudent Capital Management A fast-growing niche property developer
with integrated construction capabilities
TOTAL BORROWING/EQUITY and NET BORROWING/EQUITY
2.2
11.8
18.4
0
5
10
15
20
FY2012 FY2013 FY2014 HY2014 HY2015
(x)
0.64
0.37
0.52
0.38
0.00
0.10
0.20
0.30
0.40
0.50
0.60
0.70
FY2012 FY2013 FY2014 HY2015
(x)
(x)
EBITDA/INTEREST COVERAGE
38.0
145.1
16.9
11.2
0
20
40
60
80
100
120
140
160
180
< 1 year > 1 year
Secured Unsecured
DEBT MATURITY PROFILE
TOTAL SECURED DEBT/TOTAL ASSET
S$ million
N.A. N.A.
30
31
BUSINESS STRATEGIES
A fast-growing niche property developer
with integrated construction capabilities
Business Strategies A fast-growing niche property developer
with integrated construction capabilities
2015 >>
• Acquisition of new development sites for the Group’s land bank
• Expansion through acquisitions, joint ventures and/or strategic alliances
• Sourcing for opportunities to develop, manage and rent commercial and industrial
property developments
• Continue to grow the construction business
• Strengthening of the Group's presence in existing markets coupled with expansion
of the Group's business in Asia.
32
33
INVESTMENT MERITS
A fast-growing niche property developer
with integrated construction capabilities
Investment Merits
2 Strengthened Balance Sheet and Financial Resources
A fast-growing niche property developer
with integrated construction capabilities
3 Prime Industrial Property Land Bank
5 Synergistic Business Model with Market-Oriented Business Approach
6 Experienced & Dedicated Management Team
1 Focused Growth Strategy with New Growth Catalysts
4 Growing Construction Order Book
34
__________________________________
Media & IR Contact: Mr. Alex Tan
Mobile Contact: +65 9451 5252
Email: [email protected]
End of Presentation A fast-growing niche property developer
with integrated construction capabilities
Questions?
35