A Fast-Growing Niche Property Developer With Integrated Construction Capabilities CORPORATE PRESENTATION March 2015
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. 2
Contents Page 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
CORPORATE SNAPSHOT 4
S$ million Corporate Snapshot About OKH Global Ltd. 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. 2012 2011 Financial Year End: 30 June 300 250 200 150 100 50 0 109.12 16.11 Revenue Net Profit 24.48-1.70 223.12 26.00 243.05 45.75 FY2012 FY2013 FY2014 HY2015 The -50 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. 5
Recent Corporate Highlights HY2015 ZANA Capital invests S$8m in OKH s subsidiary RCPS Completed Woodlands Horizon Completed investment in established supply chain provider Pan Asia Logistics FY2014 Completed distribution in specie of the Group s IT business to shareholders Completed Primz BizHub & The Herencia Established JV with Pan Asia Logistics to invest in logistics properties Placement of 60 million new shares at a placement price of S$0.68 per share 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 Evia Capital Partners Pte Ltd invests S$10m in OKH s subsidiary REPS Successfully bidded for an industrial land site at Buroh Crescent OKH GLOBAL CONTINUES GROWTH STRATEGY WITH NEW GROWTH CATALYSTS AND STRONGER BALANCE SHEET 6
BUSINESS OVERVIEW 7
Market-Oriented Business Model Property Development Logistic Properties & Supply Chain Solutions Integrated Construction Services 8
Property Development Property Development Premium Industrial Property Development Build-for-Sale Projects Build-to-Lease Projects Recognising the growing demands of the industrial and manufacturing industries in land-scarce Singapore, the Group is focused on developing premium industrial and commercial developments with aesthetic and eco-friendly features. With its in-house design, engineering and construction team, the Group is able to provide businesses with various design, construction solutions and ownership structures in accordance to their financing requirements and budget. Investment Holding
Property Portfolio Property Development Projects Location Status Acquisition Price (S$ mil) Gross Floor Area (sq ft) % Sold Leasehold Tenure Seatown Industrial Tuas District Completed (2010) 5.20 274,352 100 N.M Centre A Posh BizHub Near Yishun MRT Completed (2012) 38.33 381,928 100 N.M Primz BizHub Near Admiralty Completed (2014) 84.24 553,388 100 N.M MRT Woodlands Horizon Near Admiralty Completed (2014) 71.84 503,714 100 N.M MRT 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 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 The intrinsic value of the Group s development properties are further enhanced as nearby land prices are recently transacted at a premium 10
A Posh BizHub 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 Northpoint Shopping Centre Yishun MRT Seletar Aerospace Seletar Expressway Central Expressway Tampines Expressway CBD Area Changi Airport 1.5km 1.5km 3.5km 9km 15km 20km 23km 27km 11
PRIMZ BizHub 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 Admiralty MRT Woodlands Seletar MRT Expressway Yishun MRT Bt Timah Expressway Malaysia Seletar Aerospace CBD Area Changi Airport 800m 2km 2km 3km 4km 5km 8km 17km 22km 12
Woodlands Horizon 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 Admiralty MRT Woodlands Seletar MRT Expressway Yishun MRT Bt Timah Expressway Malaysia Seletar Aerospace CBD Area Changi Airport 800m 2km 2km 3km 4km 5km 8km 17km 22km 13
Ace @ Buroh 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 flattedfactory units and 1 canteen Expected TOP in FY2016 14
Loyang Enterprise On-going Project 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 15
The Herencia 89.3% LEASED 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
Tai Seng Link 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 18
Logistics Properties & Supply Chain Solutions 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 Details of the logistics properties in Singapore, Malaysia and Korea Gross Floor Area (sq ft) Valuation (as at 31 Dec 2014) Foreign Leasehold Country Location Currency SGD Tenure Singapore Tuas Bay Drive 430,553 SGD 76 million 76 million 30 years from Sept 2012 Anchor Tenants 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 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 Shareholding Structure Overview OKH Global Ltd. 15% Pan Asia Logistics Holdings Singapore Pte. Ltd Pan Asia Logistics Investments Holdings Pte. Ltd. 40% 60% 100% Malaysia Logistic Property Korea Logistic Property Singapore Logistic Property 22
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 23
Track Record Completed More Than 30 Public and Private Sector Projects Across Different Industries As at 31 December 2014, the Group s outstanding construction order book stood at approximately S$65.41 million. 24
COMPETITIVE STRENGTHS 25
Competitive Strengths 1 2 Leveraging on its construction expertise for its own property development projects Capability in handling a wide spectrum of projects 3 Established business relationships and extensive network 4 Experienced and dedicated management team 5 Create interlinked business opportunities with its strategic growth initiatives 26
FINANCIAL HIGHLIGHTS 27
Financial Snapshot REVENUE S$ million 300 243.1 250 223.1 200 150 109.1 100 50 24.5 4.1 0 FY2012 FY2013 FY2014 HY2014 HY2015 NET PROFIT S$ million 50 45.8 40 30 26.0 20 16.1 10-1.7 0-10 -20-6.5 FY2012 FY2013 FY2014 HY2014 HY2015 GROSS PROFIT S$ million 80 60 40 20 0 29.0 0.1 46.5 2.3 68.5 FY2012 FY2013 FY2014 HY2014 HY2015 GROSS & NET MARGINS % 30 25 20 15 10 5 0 26.5 14.8 Gross Profit Margin Net Profit Margin N.M 20.8 11.6 28.2 18.8 FY2012 FY2013 FY2014 HY2015 28
Balance Sheet Highlights TOTAL ASSETS S$ million 600 568.4 475.8 483.4 500 400 324.4 300 200 100 0 FY2012 FY2013 FY2014 HY2015 TOTAL BORROWINGS S$ million 350 300 250 200 150 100 50 0 Secured Unsecured 27.3 8.4 8.7 28.1 296.4 207.2 177.5 183.1 FY2012 FY2013 FY2014 HY2015 TOTAL CASH AND CASH EQUIVALENT S$ million 100.0 84.2 80.0 58.4 60.0 52.0 40.0 22.5 20.0 0.0 FY2012 FY2013 FY2014 HY2015 TOTAL EQUITY S$ million 140 123.7 120 100 78.7 80 60 40.1 40 27.4 20 0 FY2012 FY2013 FY2014 HY2015 29
Prudent Capital Management TOTAL BORROWING/EQUITY and NET BORROWING/EQUITY (x) Total Borrowing/Equity Net Borrowing/Equity 10 8 7.9 7.1 6 4.6 4.1 4 3.3 3.0 2 1.9 1.4 0 FY2012 FY2013 FY2014 HY2015 EBITDA/INTEREST COVERAGE (x) 20 18.4 15 11.8 10 5 2.2 N.A. N.A. 0 FY2012 FY2013 FY2014 HY2014 HY2015 TOTAL SECURED DEBT/TOTAL ASSET (x) 0.70 0.60 0.50 0.40 0.30 0.20 0.10 0.00 S$ million 180 160 140 120 100 80 60 40 20 0 0.64 0.37 0.52 0.38 FY2012 FY2013 FY2014 HY2015 DEBT MATURITY PROFILE 16.9 38.0 Secured Unsecured 11.2 145.1 < 1 year > 1 year 30
BUSINESS STRATEGIES 31
Business Strategies 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
INVESTMENT MERITS 33
Investment Merits 1 Focused Growth Strategy with New Growth Catalysts 2 Strengthened Balance Sheet and Financial Resources 3 Prime Industrial Property Land Bank 4 Growing Construction Order Book 5 Synergistic Business Model with Market-Oriented Business Approach 6 Experienced & Dedicated Management Team 34
End of Presentation Questions? Media & IR Contact: Mr. Alex Tan Mobile Contact: +65 9451 5252 Email: alex.tan@8prasia.com 35