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FP2020 ANNUAL GENERAL MEETING
Transcript of FP2020 ANNUAL GENERAL MEETING
FP2020 ANNUAL GENERAL MEETING
29 January 2021
COVID-19 STATISTICS IN MYANMAR
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Covid-19 daily incidence rate in Myanmar as of 15 Jan 2021
Timeline of the policy and coordination measured by Myanmar government for Covid-19 second Wave
Aug 2020
• Second Wave started in
Rakhine state.
• Stay-home restriction was
implemented again in all
townships in Rakhine state.
• State schools, private schools
and monastic schools were
temporary closed.
Sept2020
Oct2020
• The Government had further
expanded and extended
precautionary restriction
measures in Yangon Region
and other areas.
• CMP factories, workplaces and
SMEs are allowed to resume if
they meet Grade A prevention
guidelines in the Covid-19
containment measures.
Nov2020
• Re-enforcement of
lockdown in Yangon and
Rakhine state and 11
townships in Mon,
Ayeyarwaddy, Bago and
Mandalay.
• Antigen (rapid) testing
began nationwide.
• The existing COVID-19 prevention
measures were extended,
including the temporary
suspension of international and
domestic flights.
• Mandatory swab tests or
quarantine are required for inter-
state travels, including for frontline
humanitarian workers.
Dec2020
• The domestic flights were
allowed to resume if they
meet the necessary
conditions.
• Authorities commenced
discussions to purchase the
vaccines and formed a team
of medical professionals to
oversee the administration
and storage and injection of
the vaccines.
Jan 2021
• The Government ordered 30
million doses of COVID-19
vaccines from the Serum
Institute of India, the world’s
largest vaccines manufacturer.
• The vaccination is expected to
start in February as soon as they
arrive in country.
Covid-19 total cases, recovered and deaths per 1,000 persons in population in ASEAN Countries as of 15 Jan 2021
0
500
1000
1500
2000
2500
27-Mar 27-Apr 27-May 27-Jun 27-Jul 27-Aug 27-Sep 27-Oct 27-Nov 27-Dec
New Cases New Death
Source : https://ourworldindata.org/coronavirus-source-data , Jonhs Hopkins University and Southeast Asian Health Ministries
10.528
4.971 4.754 3.346
2.508 0.4060.168 0.027 0.016 0.006
0.005 0.019 0.094 0.096 0.055 0.007 0.001 0.000 0.000 0.000
10.475
3.753 4.386
2.714
2.199 0.392 0.128 0.024 0.014 0.006
Singapore Malaysia Philippine Indonesia Myanmar Brunei Thailand Cambodia Vietnam Laos
Cases Deaths Receovered
Source : The Myanmar Times, WFP Myanmar COVID-19 Situation Report #10 (5 October 2020) and #12 (16 November 2020), UCAnews, The Ayeyarwaddy
s
MYANMAR ECONOMIC GROWTH IN 2021 FORECASTED
HIGHEST AMONGST THE REGION
1.54
0.3
0.21
1.12
0.01 0.35
1.35 1.12
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2.62
FY18/19 FY19/20
Transports and Communication Real Estate
Oil and gas Manufacturing
Others
Foreign investment approval accelerated in FY19/20 (US$ in billions)
Foreign Direct Investment
Source : https://data.adb.org/dataset/gdp-growth-asia-and-pacific-asian-development-outlook, https://www.dica.gov.mm/sites/dica.gov.mm/files/document-files/yearly_sector_14.pdf
6.5%
6.5%
6.3%
6.0%
5.9%
5.3%
4.5%
4.5%
4.5%
3.3%
3.0%
Malaysia
Philippines
Vietnam
Myanmar
Cambodia
Indonesia
Lao PDR
Singapore
Thailand
Timor-Leste
Brunei
ADB GDP Growth Rate, 2021 forecast (% per year)
Myanmar GDP to grow at 6.0% in 2021
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ACCELERATING DIGITAL ADOPTION
Digital Adoption Across Business Sectors
Stay-at-Home restrictions resulted in most of the companies across various business sectors adopting online/digital platforms.
Firms adopting online/digital platforms – by sector
5%
26%24%
17%19%
17%
40%43%
23%
32%
10%
38%
29%
34%
28%
Agriculture Manufacturing Retail and Wholesale Service Total
May September October
Source : https://www.statista.com/outlook/296/182/digital-payments/myanmar#market-users, http://documents1.worldbank.org/curated/en/906171608086222905/pdf/Myanmar-Economic-Monitor-Coping-with-COVID-19.pdf
Embracing financial technology (fintech) services where
banking penetration remains below the regional average.
7.2
9.6
11.5
1.7
3.5
4.9
2018 2019 2020
Mobile POS Payments Digital Commerce
Mobile POS Payments Users and Digital Commerce Users
2019 vs 2020 (in millions)
Growing Digital Users
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12M-SEPT2020 KEY FINANCIAL HIGHLIGHTS1
Statement of Income 12M-Sept2019(US$ million)
12M-Sept2020(US$ million)
Revenue 91.0 103.4
Cost of sales (45.7) (70.3)
Gross profit 45.3 33.1
Other gains or losses 9.0 (11.6)
Expenses:-
Administrative (50.3) (55.2)
Finance (29.6) (21.6)
Share of profits/(losses) of joint ventures
(0.9) (1.8)
Share of losses of associated companies
(8.2) (5.5)
Loss before income tax (34.7) (62.6)
Income tax expense (2.4) (3.1)
Net loss (37.1) (65.7)
Core Operating EBITDA (excluding fair value losses/(gains) and impairment losses)
4.5 2.0
• Revenue increased 13.6% driven by a strong recovery in Yoma
Land’s development business and higher revenue in Yoma
Financial Service and Yoma F&B despite the strict government
measures to limit the spread of COVID-19 in April, May and
September 2020.
• Gross profit declined by 26.9% mainly due to lower operator fee
from the Real Estate Services segment, and lower gross profit
margins from Yoma F&B and Real Estate Development
businesses.
• Other losses were mainly due to the (i) fair value losses relating to
the Group’s annual valuation exercise for its investment
properties as a result of the weakening of USD against MMK2 and
(ii) impairment losses from the Group’s agriculture investments.
• Expenses declined by 3.9% mainly due to cost control measures
taken since the onset of the COVID-19 pandemic and a
meaningful reduction in overall finance expenses.
• Excluding fair value losses/(gains) and impairment losses, core
operating EBITDA was US$2.0 million.
1The figure presented in the 12M-Sept2020 KEY FINANCIAL HIGHLIGHTS are unaudited.2In accordance with the fair value model that the Group has adopted under SFRS(I) 1-40, investment properties are remeasured atthe end of each financial year end. Historically, an annual valuation exercise was performed on 31 March and fair value adjustmentswere taken in the fourth quarter of each financial year. Given the change in financial year end for FPSept2020, the Group’s annualvaluation exercise was performed on 30 September 2020 for audit and reporting purposes.. 5
12M-SEPT2020 KEY FINANCIAL HIGHLIGHTS1
205.6315.3 305.4
861.91,003.7 Pro-forma
1,145.7
23.9%
31.4% 27.8%
0%
5%
10%
15%
20%
25%
30%
35%
0
200
400
600
800
1000
1200
1400
Sept 2018 Sept 2019 Sept 2020
US$millionNet Debt Total Capital Gearing Ratio
The Group went through a de-leveraging exercise with the repayment of certain borrowings from the proceeds
from the sale of its investment in edotco in November 2019 and the first tranche of the Ayala placement in
December 2019. This effect was partially mitigated by an increase in project borrowings for Yoma Central of
US$67.5 million.
Pro forma: 26.7%3
3Net gearing ratio assuming completion of the second tranche of Ayala’s share placement which would have increased the total capital of the Group. 6
I. AYALA CORPORATION: STRATEGIC PARTNERSHIP
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8Source: Bloomberg, World Development Indicators
THE PHILIPPINES’ ECONOMIC GROWTH A USEFUL
REFERENCE FOR MYANMAR’S DEVELOPMENT
AYALA CORPORATION INVESTING AT 45 CENTS PER SHARE
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▪ Re-affirms Yoma’s growth potential and prospects.
▪ Ayala Corporation is one of the oldest and largest
conglomerates in the Philippines.
▪ Has a portfolio of leading businesses that overlaps with
many of Yoma Strategic’s core business pillars and
common partners across various business units,
e.g., Tokyo Century, etc.
▪ Ayala Corporation’s President and COO, Mr. Fernando
Miranda Zobel de Ayala, joined Yoma Strategic’s board
as a Non-Independent Non-Executive Director.
Source: https://www.ayala.com.ph/
Investment of up to US$155 million for
a 20% stake in Yoma Strategic
II. BRIDGING THE FINANCIAL INCLUSION GAP
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12M-Sept2019 12M-Sept2020
US$2.7million
US$6.1 million
WAVE MONEY RECORDED STRONG GROWTH
• Share of profit from the 34% Wave
Money stake grew significantly.
• On 13 October 2020, Yoma Strategic
acquired an additional 10% stake in
Wave Money and now holds a 44%
stake in Wave Money.
• Yoma Strategic intends to be the
controlling shareholder of Wave
Money upon the completion of the
acquisition of the entirety of Telenor
Group’s 34.2% stake for US$76.5
million4.
• The long stop date to complete the
proposed acquisition has been
extended to 31 March 2021.
4Yoma Bank, an existing 5% shareholder in Wave Money, will retain its 5% stake post acquisition of the Telenor Group’s stake in Wave Money.
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WAVE MONEY TARGETS TO GROW ITS DIGITAL MAU TO
11.2 MILLION BY 2024
Ant Group’s expertise in building mobile payment platforms will accelerate
Wave Money’s digital journey
Source: Wave Money
III. A RESURGENCE IN REAL ESTATE
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FOR THE ASPIRING MIDDLE CLASS
City Loft @ StarCityRecorded sales/bookings of more than 80% out of 791
total launched units as at 30 September 2020.
City Loft WestA 3,000-unit5 development with Phase 1 consisting of 7
towers and approximately 1,800 units. Construction is
expected to commence in 2021.
145Subject to finalisation
FIRST LANDED HOUSING AT STARCITY
27 of 32 units had been booked/sold as at 30 September of 2020.15
STAR HUB: HIGH QUALITY OFFICES IN A SUBURBAN LOCATION
• First Star Hub in Star City with a GFA of c.290,000 square feet5.
• Received long-term leasing commitments for more than 50% of the office space.
• Targeted completion at the end of 20215.
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• 2.44 million square feet development comprising Grade A Offices, hotels, luxury residences and retail space.
• GFA of rental properties to increase more than 5X once Yoma Central becomes operational.
COMPLETION IN 2022 WILL SIGNIFICANTLY GROW RECURRING
REVENUE STREAMS
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End of Presentation