the proposed joint ventures with the straits …...2013/07/02  · this presentation may contain...

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

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Page 1: The Proposed Joint Ventures with The Straits …...2013/07/02  · This Presentation may contain forward-looking statements. These statements reflect current expectations, beliefs,

The Proposed Joint Ventures with

The Straits Trading Company Limited

And

Toga Pty Ltd

Page 2: The Proposed Joint Ventures with The Straits …...2013/07/02  · This Presentation may contain forward-looking statements. These statements reflect current expectations, beliefs,

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 www.sgx.com.

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.

Page 3: The Proposed Joint Ventures with The Straits …...2013/07/02  · This Presentation may contain forward-looking statements. These statements reflect current expectations, beliefs,

Hospitality Segment:

Business Strategy & Update

Page 4: The Proposed Joint Ventures with The Straits …...2013/07/02  · This Presentation may contain forward-looking statements. These statements reflect current expectations, beliefs,

SINGAPORE’S LEADING HOSPITALITY OPERATOR

4 4

Current Portfolio

17 hotels and serviced

residences in Singapore

1 serviced residence

in Malaysia

Strategy

Vertically integrated

hospitality operator

To grow a portfolio of 3rd

party hospitality management

agreements

To grow our footprint

regionally

The Quincy Hotel Oasia Hotel Singapore

Orchard Scott Residences

Orchard Parade Hotel

Orchard Parksuites Village Hotel Albert Court

Page 5: The Proposed Joint Ventures with The Straits …...2013/07/02  · This Presentation may contain forward-looking statements. These statements reflect current expectations, beliefs,

UPCOMING HOTELS & SERVICED RESIDENCES

5 5

Amoy Hotel

2013

7 new and pipeline agreements in Singapore, Malaysia and Indonesia

Oasia Downtown Hotel Outpost Hotel Oasia West Residences

Oasia Residences KL Quincy Bali Quincy Bintan

Page 6: The Proposed Joint Ventures with The Straits …...2013/07/02  · This Presentation may contain forward-looking statements. These statements reflect current expectations, beliefs,

EXPANSION BEYOND SINGAPORE

6 6

Australia

Expand Beyond

Singapore

to Achieve

Better Growth

Southeast Asia

Page 7: The Proposed Joint Ventures with The Straits …...2013/07/02  · This Presentation may contain forward-looking statements. These statements reflect current expectations, beliefs,

WHY AUSTRALIA?

7 7

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 visitors1

Approximately 74 million domestic overnight trips2

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)

Top 5 Country for Visitor Arrivals into Singapore

Increases awareness of our hospitality brands

Provides cross-selling benefits

Page 8: The Proposed Joint Ventures with The Straits …...2013/07/02  · This Presentation may contain forward-looking statements. These statements reflect current expectations, beliefs,

JOINT VENTURE OPPORTUNITIES

8 8

Like-Minded Partners

Highly Complementary Networks and Assets

Enhanced Platform for Growth

Page 9: The Proposed Joint Ventures with The Straits …...2013/07/02  · This Presentation may contain forward-looking statements. These statements reflect current expectations, beliefs,

HOSPITALITY STRUCTURE POST-COMPLETION

9 9

FEOrchard

30%

STC1

50% 50%

Hospitality

HoldCo

Toga Investments

Trust SPV

STC Joint Venture Toga Joint Venture

70%

via a subsidiary, FEHIPL2

50%

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

Page 10: The Proposed Joint Ventures with The Straits …...2013/07/02  · This Presentation may contain forward-looking statements. These statements reflect current expectations, beliefs,

FINANCIAL IMPACT FOR SHAREHOLDERS

10 10

Diversification Greater revenue and earnings diversification

New geographies and customer segments

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

Sufficient

Funds

Page 11: The Proposed Joint Ventures with The Straits …...2013/07/02  · This Presentation may contain forward-looking statements. These statements reflect current expectations, beliefs,

The Proposed Joint Ventures

with Straits Trading and Toga :

Overview

Page 12: The Proposed Joint Ventures with The Straits …...2013/07/02  · This Presentation may contain forward-looking statements. These statements reflect current expectations, beliefs,

RHI operates 13 hotels under the “Rendezvous” brand

and also owns the “Marque” brand

PROPOSED JOINT VENTURE WITH STRAITS TRADING

12 12

Melbourne, Australia

Rendezvous Grand Hotel Melbourne

Perth, Australia

Rendezvous Hotel Perth (1)

Hospitality Assets ― Three Hotels

Hospitality Management ― RHI

Perth Central, Australia

Rendezvous Studio Hotel Perth Central

(1) To be rebranded as Rendezvous Grand Hotel Perth

Page 13: The Proposed Joint Ventures with The Straits …...2013/07/02  · This Presentation may contain forward-looking statements. These statements reflect current expectations, beliefs,

PROPOSED JOINT VENTURE WITH TOGA

13 13

Hospitality

Management

Leading accommodation provider in Australia

Operates >50 hotels and serviced apartments

Australia, New Zealand, Germany and Denmark

Hospitality

Assets1

(1) After option is exercised to acquire TAF Assets

Sydney

Vibe Hotel

Adelaide

Adina Apartment

Hotel

Sydney Harbourside

Adina Apartment

Hotel

Darwin

Travelodge

Mirambeena

Brisbane

Adina Apartment

Hotel

Page 14: The Proposed Joint Ventures with The Straits …...2013/07/02  · This Presentation may contain forward-looking statements. These statements reflect current expectations, beliefs,

BUILDING A STRONGER PORTFOLIO

14

18 PROPERTIES

3,600 ROOMS

>80 PROPERTIES

>13,000 ROOMS

13 PROPERTIES

2,700 ROOMS

54 PROPERTIES

7,000 ROOMS

Page 15: The Proposed Joint Ventures with The Straits …...2013/07/02  · This Presentation may contain forward-looking statements. These statements reflect current expectations, beliefs,

ENLARGED HOSPITALITY PLATFORM

15

Over 80 properties with more than 13,000 rooms

1 property

128 rooms

DENMARK

GERMANY

5 properties

>600 rooms

AUSTRALIA

NEW ZEALAND

55 properties

>7,500 rooms

4 properties

>800 rooms

17 properties

~ 3,450 rooms

1 property

150 rooms

SINGAPORE

MALAYSIA

1 property

341 rooms

CHINA

18 properties

>3,700 rooms

Page 16: The Proposed Joint Ventures with The Straits …...2013/07/02  · This Presentation may contain forward-looking statements. These statements reflect current expectations, beliefs,

ENLARGED HOSPITALITY PLATFORM

16

Increases our brand portfolio from 3 to 9

Page 17: The Proposed Joint Ventures with The Straits …...2013/07/02  · This Presentation may contain forward-looking statements. These statements reflect current expectations, beliefs,

HIGHLY COMPLEMENTARY OPPORTUNITIES

17 17

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

Cost

Savings

Both joint ventures create a strong presence in Australia and New Zealand

Improve operational efficiency

Greater economies of scale

Optimise shared resources and rationalise overheads

Revenue

Enhancement

Cross-sell across geographies and target segments

Improve sales and distribution especially in the domestic market

Page 18: The Proposed Joint Ventures with The Straits …...2013/07/02  · This Presentation may contain forward-looking statements. These statements reflect current expectations, beliefs,

IN SUMMARY

18

Expands

Regional Footprint

Increases

Scale & Efficiency

Increases

Recurring Income

Increases

Future Opportunities

Page 19: The Proposed Joint Ventures with The Straits …...2013/07/02  · This Presentation may contain forward-looking statements. These statements reflect current expectations, beliefs,

T H A N K Y O U