The Proposed Joint Ventures with The Straits Trading Company Limited And Toga Pty Ltd

Transcription

1 The Proposed Joint Ventures with The Straits Trading Company Limited And Toga Pty Ltd

2 DISCLAIMER This Presentation should be read in conjunction with the Circular to Shareholders dated 24 June 2013 issued by Far East Orchard Limited ( FEOrchard or the Company ) in relation to the Transactions ( Circular ). Shareholders are also advised to read all the announcements and documents relating to the Transactions that have been or shall be released by the Company; copies of which are available on Capitalised terms not defined herein shall have the meanings given to them in the Circular. FORWARD LOOKING STATEMENTS This Presentation may contain forward-looking statements. These statements reflect current expectations, beliefs, hopes, intentions or strategies regarding the future and assumptions in light of currently available information. Such forward-looking statements are not guarantees of future performance or events and involve known and unknown risks and uncertainties. Accordingly, actual results or outcomes may differ materially from those described in such forward-looking statements. Shareholders should not place undue reliance on such forward-looking statements, and neither FEOrchard nor any member of the FEOrchard Group undertakes any obligation to update publicly or revise any forward-looking statements, subject to compliance with all applicable laws and regulations and/or rules of the SGX-ST. 2

3 Hospitality Segment: Business Strategy & Update

4 SINGAPORE S LEADING HOSPITALITY OPERATOR Current Portfolio 17 hotels and serviced residences in Singapore 1 serviced residence in Malaysia Strategy The Quincy Hotel Oasia Hotel Singapore Orchard Parade Hotel Vertically integrated hospitality operator To grow a portfolio of 3 rd party hospitality management agreements To grow our footprint regionally Orchard Parksuites Orchard Scott Residences Village Hotel Albert Court 4

5 UPCOMING HOTELS & SERVICED RESIDENCES 7 new and pipeline agreements in Singapore, Malaysia and Indonesia 2013 Oasia Downtown Hotel Oasia West Residences Outpost Hotel Amoy Hotel Oasia Residences KL Quincy Bali Quincy Bintan 5

6 EXPANSION BEYOND SINGAPORE Expand Beyond Singapore to Achieve Better Growth Southeast Asia Australia 6

7 WHY AUSTRALIA? Different Economic Cycle from Southeast Asia Developed economy with stable hospitality market trends In contrast, Southeast Asia has higher growth and risks Key Travel Destination in Asia Pacific Approximately 6 million international visitors 1 Approximately 74 million domestic overnight trips 2 Top 5 Country for Visitor Arrivals into Singapore Increases awareness of our hospitality brands Provides cross-selling benefits Source: (1) Australian Bureau of Statistics, Short-term visitor arrivals (last twelve months ended April 2013); (2) Tourism Research Australia, Domestic overnight trips (year ended Dec 2012) 7

8 JOINT VENTURE OPPORTUNITIES Like-Minded Partners Highly Complementary Networks and Assets Enhanced Platform for Growth 8

9 HOSPITALITY STRUCTURE POST-COMPLETION STC Joint Venture Toga Joint Venture FEOrchard STC 1 Toga Investments 70% 30% 50% Hospitality HoldCo 50% via a subsidiary, FEHIPL 2 Trust 50% SPV Held directly or by wholly-owned subsidiaries: FEOrchard Assets: 25 hotel and serviced management agreements. One property management agreement STC Assets Three Hotels in Australia RHI, which manages/leases 13 hotels Toga Hotels: Toga Group s hospitality management arm, which operates >50 hotels and serviced apartments Five Hotels in Australia After option is exercised to acquire TAF Assets (1) Through its wholly-owned subsidiary, SPL (2) Assuming that the Interest Transfer has taken place 9

10 FINANCIAL IMPACT FOR SHAREHOLDERS Diversification Greater revenue and earnings diversification New geographies and customer segments Sufficient Funds Funded by existing cash and/or external debt facilities No need to raise new equity from existing or new shareholders Value Creation Revenue and cost synergies Increase recurring income and earnings growth Better access to future growth opportunities in hospitality-related investments The Joint Ventures Offer Benefits to FEOrchard and our Shareholders 10

11 The Proposed Joint Ventures with Straits Trading and Toga : Overview

12 PROPOSED JOINT VENTURE WITH STRAITS TRADING Hospitality Assets Three Hotels Perth, Australia Rendezvous Hotel Perth (1) Perth Central, Australia Rendezvous Studio Hotel Perth Central Melbourne, Australia Rendezvous Grand Hotel Melbourne Hospitality Management RHI RHI operates 13 hotels under the Rendezvous brand and also owns the Marque brand (1) To be rebranded as Rendezvous Grand Hotel Perth 12

13 PROPOSED JOINT VENTURE WITH TOGA Leading accommodation provider in Australia Hospitality Management Operates >50 hotels and serviced apartments Australia, New Zealand, Germany and Denmark Hospitality Assets 1 Darwin Adelaide Sydney Brisbane Sydney Harbourside Travelodge Mirambeena Adina Apartment Hotel Vibe Hotel Adina Apartment Hotel Adina Apartment Hotel (1) After option is exercised to acquire TAF Assets 13

14 BUILDING A STRONGER PORTFOLIO 18 PROPERTIES 13 PROPERTIES 54 PROPERTIES >80 PROPERTIES 3,600 ROOMS 2,700 ROOMS 7,000 ROOMS >13,000 ROOMS 14

15 ENLARGED HOSPITALITY PLATFORM Over 80 properties with more than 13,000 rooms 5 properties >600 rooms GERMANY DENMARK 1 property 128 rooms properties properties ~ >3,700 3,450 rooms rooms SINGAPORE CHINA 1 property 341 rooms 1 property 150 rooms MALAYSIA AUSTRALIA 55 properties >7,500 rooms NEW ZEALAND 4 properties >800 rooms 15

16 ENLARGED HOSPITALITY PLATFORM Increases our brand portfolio from 3 to 9 16

17 HIGHLY COMPLEMENTARY OPPORTUNITIES Both joint ventures create a strong presence in Australia and New Zealand Strategic Foothold Manage 59 properties in Australia and New Zealand Portfolio under the joint ventures located across key cities such as Sydney, Brisbane, Gold Coast, Melbourne, Perth, Auckland and Christchurch Revenue Enhancement Cross-sell across geographies and target segments Improve sales and distribution especially in the domestic market Cost Savings Improve operational efficiency Greater economies of scale Optimise shared resources and rationalise overheads 17

18 IN SUMMARY Expands Regional Footprint Increases Scale & Efficiency Increases Future Opportunities Increases Recurring Income 18

19 T H A N K Y O U