Far East Orchard Ltd. · SGX:O10
Far East Orchard — Merger or Acquisition (July 2013)
19 slides from Far East Orchard's merger presentation, Jul 2, 2013
Slide 1: The Proposed Joint Ventures with The Straits Trading Company Limited and Toga Pty Ltd
The Proposed Joint Ventures with The Straits Trading Company Limited And Toga Pty Ltd
Slide 2: Disclaimer
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 re
Slide 3: Hospitality Segment: Business Strategy & Update
Hospitality Segment: Business Strategy & Update
Slide 4: Singapore's Leading Hospitality Operator
SINGAPORE’S LEADING HOSPITALITY OPERATOR Current Portfolio 17 hotels and serviced residences in Singapore 1 serviced residence in Malaysia The Quincy Hotel Oasia Hotel Singapore Orchard Parade Hotel Strategy Vertically integrated hospitality operator To grow a portfolio of 3rd party hospital
Slide 5: Upcoming Hotels & Serviced Residences
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
Slide 6: Expansion Beyond Singapore
EXPANSION BEYOND SINGAPORE Southeast Asia Expand Beyond Singapore to Achieve Better Growth Australia 6
Slide 7: Why Australia?
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 visitors1 Approximately 74 million domestic
Slide 8: Joint Venture Opportunities
JOINT VENTURE OPPORTUNITIES Like-Minded Partners Highly Complementary Networks and Assets Enhanced Platform for Growth 8
Slide 9: Hospitality Structure Post-Completion
HOSPITALITY STRUCTURE POST-COMPLETION STC Joint Venture Toga Joint Venture FEOrchard STC1 Toga Investments 70% 30% 50% Hospitality 50% Trust50% SPV HoldCo via a subsidiary, FEHIPL2 Held directly or by wholly-owned subsidiaries: Toga Hotels: FEOrchard Assets: • Toga Group’s hospitality • 25 hotel
Slide 10: Financial Impact for Shareholders
FINANCIAL IMPACT FOR SHAREHOLDERS Greater revenue and earnings diversification Diversification New geographies and customer segments Sufficient Funded by existing cash and/or external debt facilities Funds No need to raise new equity from existing or new shareholders Revenue and cost syner
Slide 11: The Proposed Joint Ventures with Straits Trading and Toga: Overview
The Proposed Joint Ventures with Straits Trading and Toga : Overview
Slide 12: Proposed Joint Venture with Straits Trading
PROPOSED JOINT VENTURE WITH STRAITS TRADING Hospitality Assets ― Three Hotels Perth, Australia Perth Central, Australia Melbourne, Australia Rendezvous Hotel Perth (1) Rendezvous Studio Hotel Perth Central Rendezvous Grand Hotel Melbourne Hospitality Management ― RHI RHI operates 13 hotels under the
Slide 13: Proposed Joint Venture with Toga
PROPOSED JOINT VENTURE WITH TOGA Leading accommodation provider in Australia Hospitality Operates >50 hotels and serviced apartments Management Australia, New Zealand, Germany and Denmark Hospitality Assets1 Darwin Adelaide Sydney Brisbane Sydney Harbourside Travelodge Adina Apartment Vibe Hot
Slide 14: Building a Stronger Portfolio
BUILDING A STRONGER PORTFOLIO 18 13 54 >80 PROPERTIES PROPERTIES PROPERTIES PROPERTIES 3,600 2,700 7,000 >13,000 ROOMS ROOMS ROOMS ROOMS 14
Slide 15: Enlarged Hospitality Platform: Over 80 properties, 13,000 rooms
ENLARGED HOSPITALITY PLATFORM Over 80 properties with more than 13,000 rooms DENMARK 1 property 128 CHINA rooms 1 5 property properties 341 >600 rooms rooms MALAYSIA GERMANY 1 property 150 rooms 55 17 18 properties properties properties >7,500 ~>3,700 3,450 rooms rooms rooms AUSTRALIA SINGAPORE NEW
Slide 16: Increases our brand portfolio from 3 to 9
ENLARGED HOSPITALITY PLATFORM Increases our brand portfolio from 3 to 9 16
Slide 17: Highly Complementary Opportunities
HIGHLY COMPLEMENTARY OPPORTUNITIES Both joint ventures create a strong presence in Australia and New Zealand Manage 59 properties in Australia and New Zealand Strategic Foothold Portfolio under the joint ventures located across key cities such as Sydney, Brisbane, Gold Coast, Melbourne, Perth, A
Slide 18: In Summary
IN SUMMARY Expands Increases Regional Footprint Scale & Efficiency Increases Increases Future Opportunities Recurring Income 18
Slide 19: Thank You
THANK YOU Fry] orcHaRD LIMITED