2Q2019 Financial Results Presentation · FRANCHISE TO MYANMAR 16 More than 1,800 outlets in 30...
Transcript of 2Q2019 Financial Results Presentation · FRANCHISE TO MYANMAR 16 More than 1,800 outlets in 30...
2Q2019 Financial Results Presentation
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AGENDA• Financial Highlights
• Key Developments
FINANCIAL HIGHLIGHTS
14
33.14
41.91
14.81 14.73
3.68
26.16
2Q2018 2Q2019
S$ MILLION Revenue Gross profit Net Profit attributable to Shareholders
FINANCIAL HIGHLIGHTS
Led by the much improved Real Estate performance
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KEY HIGHLIGHTS OF YOMA LAND BUSINESS
(REAL ESTATE DEVELOPMENT) Strong revenue growth was generated mainly
from new sales of apartments in Galaxy
Towers 2 and 4.
Lower gross margin was partly due to:
- In August 2017 (2Q2018), the Group
bought StarCity Zone C back from a third
party investor.
- Recognised revenue based on additional
share of profits in 2Q2018 where there
was minimal cost of sales, resulting in a
high gross profit margin for that quarter.
- Following the buyback, the Group now
recognises the revenue and cost of sales
of the sold units progressively in
accordance with the Group’s
accounting policy going forward. 5
9.83
22.59
7.95 7.988.23
6.44
0
5
10
15
20
25
2Q2018 2Q2019
S$ million
Revenue
Gross profit
Core Operating EBITDA
Core operating EBITDA excludes EBITDA of the Yoma Central project as administrative expenses
form part of the overall project budget and have been funded according to the shareholders’
agreement.
KEY HIGHLIGHTS OF YOMA LAND BUSINESS
(REAL ESTATE SERVICES)
Rental revenue from the two Dulwich
international schools and The Campus
partially offset the loss of rental
revenue from FMI Centre.
The higher EBITDA was mainly due to
S$58.5 million fair value gains.
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5.09 4.652.99 2.72
7.30
60.15
0
10
20
30
40
50
60
70
2Q2018 2Q2019
S$ millionRevenue
Gross profit
Core Operating EBITDA
Core operating EBITDA refers to earnings before interest, taxes, depreciation and amortisation of
operating subsidiaries excluding currency translations differences.
KEY HIGHLIGHTS OF YOMA F&B BUSINESS
Revenue contribution exclusively from
KFC business.
Operates 26 KFC stores throughout
Myanmar as at 30 September 2018.
Increase in revenue driven by new store
openings alongside 6.0% same-store
sales and 9.0% transaction growth.
Gross margin had also improved through
greater store efficiencies.
7
3.28
4.61
1.50
2.30
-0.42 -0.36
-1
0
1
2
3
4
5
2Q2018 2Q2019
S$ millionRevenue Gross profit Core Operating EBITDA
Core operating EBITDA refers to earnings before interest, taxes, depreciation and amortisation of
operating subsidiaries excluding currency translations differences.
KEY HIGHLIGHTS OF YOMA MOTORS BUSINESS
• Lower revenue was due to the lower
number of tractor and implements sold
in the New Holland business.
• The decline was mainly due to the
delay in farmers taking delivery of the
second 500-tractor order as a result of
the strong monsoon at the beginning of
the quarter.
• 209 tractors and 165 implements sold in
2Q2019.
8
12.92
7.66
1.67
0.62
-0.06
-0.95-2
0
2
4
6
8
10
12
14
2Q2018 2Q2019
S$ millionRevenue Gross profit Core Operating EBITDA
Core operating EBITDA refers to earnings before interest, taxes, depreciation and amortisation of
operating subsidiaries excluding currency translations differences.
KEY HIGHLIGHTS OF YOMA FINANCIAL SERVICES BUSINESS
Revenue generated from the
Financial Services business was
exclusively from Yoma Fleet.
Yoma Fleet expanded to 919 vehicles
with total assets of S$36.8 million.
9
1.71
2.09
0.46
0.890.96
1.37
0.0
0.5
1.0
1.5
2.0
2.5
2Q2018 2Q2019
S$ millionRevenue Gross profit Core Operating EBITDA
Core operating EBITDA refers to earnings before interest, taxes, depreciation and amortisation of
operating subsidiaries excluding currency translations differences.
HEALTHY BALANCE SHEET
10
-0.6%0.8%
9.4%
15.0%
19.3%
23.8%
-5%
0%
5%
10%
15%
20%
25%
30%
-200
0
200
400
600
800
1,000
1,200
1,400
FY2014 FY2015 FY2016 FY2017 FY2018 1H2019
Mill
ion
s
Net Debt (LHS) Total Borrowings (LHS) Total Capital (LHS) Net Gearing (RHS)
Net gearing is healthy at 23.8%
The financial gearing ratio is calculated as net debt divided by total capital. Net debt is calculated as borrowings (excluding loans from non-controlling interests) less cash
and cash equivalents. Total capital is calculated as total equity plus net debt.
KEY DEVELOPMENTS
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KEY DEVELOPMENTS
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YOMA LAND
Launched City Loft, a new
mass market offering
Yoma Financial Services
Wave Money achieved cashflow
breakeven and Yoma Fleet
partners with the authorised
dealer of Caterpillar in Myanmar
YOMA F&B
Added Auntie Anne’s, the
world’s largest hand-rolled soft
pretzel franchise1, to its portfolio
1 Auntie Anne’s internal data
LAUNCH OF CITY LOFT
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Designed to bring quality apartments at an
accessible price point.
Favourable mortgage repayment terms of up to 25
years with domestic banks.
The first City Loft project is located in StarCity (“City
Loft @ StarCity”), which received a very strong and
positive response during its pre-launch with half of
its 250 units sold within a week
YOMA LAND
YANGON SERVICED APARTMENT MARKET1
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YOMA LAND
No new serviced apartment projects
were completed between October 2017
and June 2018.
Majority of the new supply is expected
to enter into the market only from 2020.
City-wide occupancy rate at 83.7% with
projected occupancy to hover between
80% and 90% following the completion
of new stock between 2019 and 2021. 0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
5,000
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018F
2019F
2020F
2021F
Yangon Serviced Apartment Stock
Supply at the start of the year
Additional supply during the year
1Source: Collier, Yangon Serviced Apartment 2Q2018 report
STARCITY GALAXY TOWERS
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Tower 2 and Tower 4 are nearing completion.
Fitted out units provide the opportunity to quickly tap into the more robust serviced apartment
sector where new supply is limited in the next two years.
YOMA LAND
BRINGING AUNTIE ANNE’S PRETZEL
FRANCHISE TO MYANMAR
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More than 1,800 outlets in 30 countries, including more than
600 locations outside of the USA1.
Strong presence in Asia, gaining popularity in markets such as
Thailand, Philippines, Japan, Cambodia, Indonesia, Malaysia,
Singapore, China and South Korea1.
First store scheduled to open in Yangon with ambitious
expansion planned during the next five years.
Targeting Myanmar’s growing middle class and the growing
popularity in the market for freshly baked goods.
Auntie Anne’s will sit alongside KFC and Little Sheep Hotpot in
Yoma F&B’s expanding franchise portfolio.
YOMA F&B
1 Auntie Anne’s internal data
WAVE MONEY CONTINUING RAPID GROWTH
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ACHIEVED CASH-FLOW BREAKEVEN IN SEPTEMBER 2018
Revenues* (MMK)
*Revenue includes prepaid airtime sales in addition to money transfer revenues.
YOMA FINANCIAL
SERVICES
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WST Transactions*
• WST is Wave Shop Transfer, an over the counter
money transfer.
• WA is Wave Account, a customer account
connected to the MSISDN.
• WST Transactions includes WST-WST and WST-WA
WAVE MONEY CONTINUING RAPID GROWTHAGENT NETWORK REACH 34,019 AT THE END OF SEPTEMBER 2018
YOMA FINANCIAL
SERVICES
FAST EXPANSION OF YOMA FLEET
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149
332
540
720
919
0
100
200
300
400
500
600
700
800
900
1,000
Mar 15 Mar 16 Mar 17 Mar 18 Sept 18
No. of Vehicles
YOMA FINANCIAL
SERVICES
New partnership with the authorised
dealer of Caterpillar branded heavy
equipment in Myanmar.
Targeting the expected upturn in the
resource and construction industry as well
as Myanmar’s massive infrastructure
build-out.
Potential for sizeable additions to Yoma
Fleet’s existing portfolio.