Mongolia Growth Group Ltd. · TSXV:YAK.H
Mongolia Growth — Investor Presentation (July 2013)
25 slides from Mongolia Growth's investor presentation, July 2013
Slide 1: YAK:CN - Leveraged to Mongolia's Growth
YAK:CN - Leveraged to Mongolia’s Growth July 2013
Slide 2: Forward Looking Statement
Forward Looking Statement Caution Regarding Forward-Looking Information This presentation contains statements that, to the extent that they are not historical fact, may constitute "forward-looking information" within the meaning of applicable securities legislation. Forward-looking statements or inf
Slide 3: Mission
Mission To provide a liquid and transparent way to invest in Mongolia’s growth… 3
Slide 4: Mongolia is the Saudi Arabia of Asia
“Mongolia is the Saudi Arabia of Asia” ~Mark Faber 10 Largest Deposits Worth US $1.3tn Source: Temasek Holdings (2010) *Others: Baganuur, Erdenet, Nariin Shukhait, Tumurtei and Dornod 4
Slide 5: Mongolia GDP Growth
Mongolia GDP Growth Mongolia GDP Growth - 1990-2018 30 “Mongolia will be the fastest growing 25 economy in the next decade” - IMF 22.79 20.01 20 In Billions (USD) 17.78 15.59 13.96 15 12.9 10.25 10 8.69 6.23 5.6 4.65 5 4.23 3.41 2.65 1.51 1.45 1.14 0 1990 1995 2000 2005 2006 2007 2008 2009 2010 2011
Slide 6: Incomes are Increasing
Incomes are Increasing Estimated Mongolia GDP Per Capita 1990 - 2018 12,000 9,718 10,000 8,867 8,191 8,000 7,438 USD Per Capita 6,878 6,134 6,000 5,371 4,770 4,020 3,791 3,879 4,000 3,544 3,168 2,861 2,039 1,933 1,753 2,000 0 1990 1995 2000 2005 2006 2007 2008 2009 2010 2011 2012* 2013* 2014* 2015*
Slide 7: The Big Question
The Big Question If Mongolia is going to be one of the fastest growing economies over the next decade…. 7
Slide 8: Real Estate: Two Major Trends in a Growing Economy
Real Estate Two Major Trends in a Growing Economy Rents UP Cap Rates Down Cap Rates Decrease Rents Increase (Increased Capital (GDP Drives Rents) Availability) LEADS TO PRICE APPRECIATION 8
Slide 9: Explosive Property Price Appreciation
+ = Explosive Property Price Appreciation
Slide 10: Astana - Kazakhstan
Astana - Kazakhstan “With the second highest per capita GDP in the former Soviet Union, Kazakhstan is the obvious franchising leader in Central Asia and is poised to replicate the retail and franchising boom that Russia has experienced over the last decade.” ~ USA.gov 1991 2013 BEFORE AFTER 10
Slide 11: Doha - Qatar
Doha - Qatar “Consumers in Qatar have the highest disposable income in the world, driving consumption and demand for retail space.” ~ DTZ 1980 2013 BEFORE AFTER 11
Slide 12: Abu Dhabi - UAE
Abu Dhabi - UAE “The amount of retail space in Abu Dhabi will double to 1.8 million sq. meters by 2015” ~ Cushman & Wakefield 1960s 1954 2013 2011 BEFORE AFTER 12
Slide 13: Kuwait City - Kuwait
Kuwait City - Kuwait “International brands are popular in Kuwait. Unlike other GCC countries, fashion sales are not driven by expatriates, but by locals with a lot of disposable income” ~ AT Kearny 1961 2013 13
Slide 14: Ulaanbaatar: A Unique Opportunity
Ulaanbaatar: A Unique Opportunity The majority of all The downtown corridor is only commercial activity is 3km long along Peace Avenue focused on ONE street called Peace Avenue Only a handful of secondary streets downtown The majority of businesses want to be located downtown 14
Slide 15: Ulaanbaatar City Map
Ulaanbaatar City Map UB is constricted by mountains Mountains to the north & south Downtown Mountains Airport 15
Slide 16: Downtown Ulaanbaatar
Downtown Ulaanbaatar North New UN Building Parliament Central Business District Seoul Street 16
Slide 17: MGG Property Portfolio
Monco.LtiA MGG Property Portfolio GROWTH G JP
Slide 18: Portfolio Focus
Portfolio Focus Focus on top-quality properties on Peace Avenue & secondary streets Focus on leasable retail and office property Focus on redevelopment opportunities 18
Slide 19: Property Portfolio
Property Portfolio Asset Type Number of Meters 2 Percentage Annualized Percentage Of Properties Of Portfolio Revenue* (‘000 Total Revenue Based On Mongolian Cost Tugrog) Residential 5 - 1.1% 54,564 1.9% Office 3 3,225 10.4% 535,005 18.5% Retail – High Street 25 4,235 27.4% 955,763 33.0% Retail – Sec
Slide 20: Lease Expirations
Lease Expirations 50% 45% 40% 35% % of Leases 30% 25% 20% 15% 10% 5% 0% 2013 2014 2015 2016 2017 2018 20 Lease expiration percentages are based on the percentage of the Company’s annualized rent as of May 31, 2013.
Slide 21: How Does Ulaanbaatar Stack Up Today?
How Does Ulaanbaatar Stack Up Today?
Slide 22: Most Expensive High Street Retail
Most Expensive High Street Retail Hong Kong New York Paris Tokyo Sydney London Zurich Seoul Beverly Hills Brisbane Chicago San Francisco Sao Paulo Moscow Beijing Singapore Kuala Lumpur Toronto Tel Aviv Kiev Bogota Istanbul Taipei Ho Chi Minh City Beirut Luxemburg Jenusalem Warsaw Almaty Jakarta Bang
Slide 23: Office Space per Capita
Office Space per Capita New York - Newark - Edison, NY-NJ-PA Los Angeles - Long Beach - Santa Ana, CA Washington - Arlington-Alexandria, DC-VA-MD-WV Chicago - Naperville - Joilet, IL-IN, WI All Non - Metro Areas Boston - Cambridge - Quincy, MA-NH Dallas - Fort Worth - Arlington, TX San Francisco - O
Slide 24: Company Highlights
Company Highlights Founded in February 2011 Management & Board own approximately 30% No salaries, options for founding management Raised $51 million Invested approximately $40 million in property Listed on TSXV (YAK-V & MNGGF:USA) 24
Slide 25: Contact
Contact For more information please visit: http://www.MongoliaGrowthGroup.com or contact: [email protected] 25
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