CONSISTENT PROFITABILITY AND GROWTH

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3 CONSISTENT PROFITABILITY AND GROWTH Revenue Gross Profit (HK$MM) Year-end March 1,174 1,161 (HK$MM) Year-end March 63% 69% 67% (% Margin) ,065 FY2011 FY2012 FY2013 FY2011 FY2012 FY2013 EBITDA (1) Net Asset Value (2) (HK$MM) Year-end March (% Margin) (HK$MM) Year-end March 19,792 47% % % ,819 16,492 FY2011 FY2012 FY2013 Notes 1. Excluding net investment gain / (loss) and fair value gain of investment properties 2. Reflecting the Group s hotel properties at their fair value based on independent professional valuation FY2011 FY2012 FY2013 3

4 PRESENTATION FINANCIAL HIGHLIGHTS Income Statement (Year-end March) HK$MM FY2013 FY2012 FY2011 Financials as of 31-Mar Mar Mar-11 Revenue 1,161 1,174 1,065 Gross Profit EBITDA (1) Margin % 50% 53% 47% Interest Expense (2) Underlying Net Income Reported Net Profit 2, ,235 Note 1. Excluding net investment gain / (loss) and fair value gain of investment properties 2. Includes interest capitalized under properties under development for sale 4

5 PRESENTATION DISCIPLINED CREDIT METRICS EBITDA (1) / Interest (2) Total Debt / EBITDA (1) (HK$MM) Year-end March (HK$MM) Year-end March (% Margin) 10.8x 8.4x 8.5x 7.8x 6.2x 5.8x FY2011 FY2012 FY2013 FY2011 FY2012 FY2013 Net Debt / Revalued Net Assets (3) Total Debt / Total Capitalization (4) (HK$MM) Year-end March (% Margin) Year-end March 24.1% 21.2% 15.0% 20.8% 19.1% 14.6% FY2011 FY2012 FY2013 FY2011 FY2012 FY2013 Notes 1. Excluding net investment gain / (loss) and fair value gain of investment properties 2. Includes interest capitalized under properties under development for sale, net foreign exchange gain on borrowings, fair value gain on interest rate swap 3. Reflecting the Group s hotel properties at their fair value based on independent professional valuation 4. Total Debt + Adj. Equity, reflecting the Group s hotel properties at their fair value based on independent professional valuation 5

6 PRESENTATION FINANCIAL HIGHLIGHTS Credit Ratios HK$MM FY2013 FY2012 FY2011 Financials as of 31-Mar Mar Mar-11 EBITDA (1) / Interest (2) 8.5x 8.3x 10.9x Total Debt / EBITDA (1) 5.8x 6.2x 7.8x Net Debt / Equity 22% 32% 34% Total Debt / Adj. Total Capitalization (3) 14.6% 19% 21% Net Debt / Revalued Net Assets (3) 15% 21% 24% Note 1. Excluding net investment gain / (loss) and fair value gain of investment properties 2. Includes interest capitalized under properties under development for sale 3. Reflecting the Group s hotel properties at their fair value based on independent professional valuation 6

7 PRESENTATION DISCIPLINED FINANCIAL MANAGEMENT Well Balanced Debt Profile Well staggered maturity profile FY 2013 (%) Revolving Bank Loans 5.0% 1.3% Securities Margin! Loans Low borrowing cost of 2.0% Undrawn credit facilities of HK $3.4Bn Long Term! Bank Loans 93.7% Strong relationship with major lenders including HSBC, Hang Seng, BOC, ICBC and BEA Long Term Debt Maturity Profile In HK$ Million 1, ,382 <1 Year 1-2 Year 3-5 Year >5Year (Up to 13 Years) 7

8 PRESENTATION FINANCIAL HIGHLIGHTS Balance Sheet HK$MM FY2013 FY2012 FY2011 Financials as of 31-Mar Mar Mar-11 Total Assets 17,172 14,989 14,732 Net Assets 13,489 10,838 10,589 Total Equity 13,489 10,838 10,589 Revalued Total Assets (2) 23,500 20,670 18,991 Revalued Net Assets (2) 19,792 16,492 14,819 Revalued Equity 17,065 14,095 12,729 Total Debt 3,378 3,891 3,886 Short-term Debt 479 1,527 1,616 Long-term Debt 2,899 2,364 2,270 Cash (1) Net Debt 2,969 3,492 3,571 Total Capitalization 16,867 14,729 14,475 Adj. Total Capitalization (2) 23,170 20,383 18,705 Note 1. Cash and bank balances, time deposits and pledged time deposits, bank balances and restricted cash 2. Reflecting the Group s hotel properties at their fair value based on independent professional valuation 8

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10 PRESENTATION OVERVIEW Asia Standard has grown to establish a reputation as a premium residential developer in Hong Kong Established premium property portfolio in prime CBD locations Development pipeline of 5.8MM sqft (1) FY 2013 Revenue: HK$1.2Bn FY 2013 EBITDA: HK$580MM Total Asset Value: HK$23.5Bn Property Development Real estate development " in prime locations in China" and Hong Kong Property construction, " development and sales Primary focused in" residential developments Property Investment 3 Prime investment" properties in Hong Kong" with prominent tenants Diverse tenant base" generating stable" recurring income Hospitality Investment! & Management 3 Empire hotels in Hong " Kong and 1 in Vancouver Business hotels located " in city centers Self-managed through" the Empire brand Investment Portfolio Highly liquid financial" investment portfolio of " c. HK$4.2Bn Cautiously selective & broad" portfolio generating" stable returns Focus on quality and design Note 1. ASI attributable: 4.0MM sqft. Excluding landbank and hotel extension 10

11 PRESENTATION CORPORATE STRUCTURE Mr. Poon Jing & Family" Group CEO 50.01% Holding Company Asia Orient Holdings ( ) SEHK: % Property Company Asia Standard International( )! SEHK: % 70.10% Hotel Company Asia Standard Hotel Group ( ) SEHK: 292 Source Company Filings, Hong Kong Stock Exchange 11

12 CORPORATE HISTORY AND KEY MILESTONES PRESENTATION Started property business" in Hong Kong HKSE listing First development in" China (Guangzhou) First property development" project in Beijing Acquired Empire" Hong Kong Hotel Strategic partnership" with Grosvenor Hotel spin-off Today 3 Landmark investment properties 4 Signature hotels Development pipeline GFA of 5.8MM sqft (1) c. HK$4.2Bn of financial investments Note 1. ASI attributable: 4.0MM sqft. Excluding landbank and hotel extension 12

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14 PRESENTATION KEY CREDIT STRENGTHS 1 Significant stable recurring income of HK$685MM from strong and diversified assets 2 3 Valuable premium quality investment properties and business-grade hotels in prime CBD locations in Hong Kong Proven track record of luxury residential developments in Hong Kong and China tier 1 cities; partnership with reputable UK developer Grosvenor 4 Disciplined financial management with a low net gearing and solid balance sheet 5 Development growth strategy with an extensive pipeline of 5 major residential projects 14

15 1. PRESENTATION STRONG AND DIVERSIFIED RECURRING INCOME Diversified recurring income from Grade A offices, prime retail, hospitality properties and investment portfolio DIVERSIFIED INCOME STREAMS RECURRING EBITDA(1) (HK$MM) Property Investment FY2012 FY2013 Business Hotels 211 Investment Portfolio 194 FY2011 Property Investment Note 1. EBITDA from individual business sectors before unallocated corporate overhead. Hotels Investment Portfolio 15

16 2. PREMIUM QUALITY ASSETS: HOTEL INVESTMENT & MANAGEMENT Total Appraised Value: HK$8.7Bn (1) Efficient management conducive to high occupancy and gross margin Empire Hotel Hong Kong Empire Hotel Causeway Bay Year Acquired: 1994 No. of Rooms: Location: Wanchai Occupancy: 97% Site Area: 10,600 sqft Average Room Rate: 362 guestrooms HK$1,084 GFA: c. 184,000 sqft Ownership: 100% Year Acquired: 2007 No. of Rooms: Location: Causeway Bay Occupancy: 95% guestrooms Site Area: 8,300 sqft Average Room Rate: HK$954 GFA: c. 140,000 sqft Ownership 100% Note 1. As of 31 March

17 PRESENTATION 2. PREMIUM QUALITY ASSETS: HOTEL INVESTMENT & MANAGEMENT Total Appraised Value: HK$8.7Bn (1) Efficient management conducive to high occupancy and gross margin Empire Hotel Kowloon Empire Landmark Hotel Vancouver Year Built: 2001 No. of Rooms: guestrooms Year Acquired: 1997 No. of Rooms: 358 guestrooms Location: Tsim Sha Tsui CBD Occupancy: 97% Location: Vancouver Occupancy: 55% Site Area: c. 14,240 sqft Average Room Rate: HK$1,056 GFA: c. 220,000 sqft Ownership: 100% Site Area: 41,000 sqft Average Room Rate: HK$738 GFA: c. 410,000 sqft Ownership: 100% Note 1. As of 31 March

18 2. PREMIUM QUALITY ASSETS: LANDMARK BUILDING PRESENTATION Total Appraised Value: HK$9.6Bn (1) Active lease management with positive rental reversion Asia Standard Tower, Central Asia Orient Tower, Wanchai 泛海大廈 灣仔匯漢大廈 Location: Central CBD GFA: c. 133,000 sqft ASI Interest: 100% Location: Wanchai GFA: c. 114,000 sqft ASI Interest: 100% Goldmark, Causewaybay Location: Causeway Bay GFA: c. 110,000 sqft ASI Interest: 33% Note 1. As of 31 March 2013, ASI attributable HK $6.7Bn 18

19 PRESENTATION 2. PREMIUM QUALITY DEVELOPMENT TRACK RECORD Track record in development which focus on design & quality; Strong execution capability with effective marketing strategies Residential Development since 1984 Flagship Developments 29 completed developments in Hong Kong and China The Westminster Terrace! 2010 Jadewater! 2008 Canaryside! 2007 Spanning major cities from Hong Kong to Shenzhen to Beijing Exceptional return on investments GROSVENOR Place! 2004 No. 8 Shiu! Fai Terrace! 2003 Royalton II! 2001 Emphasis on quality and design 19

20 PRESENTATION 3. ASIA-PACIFIC DEVELOPMENT PARTNER OF GROSVENOR FOR 13 YEARS AND ONGOING Synergy of local expertise years from the Grosvenor Group Benchmarked and redefined premium residential development in Hong Kong Grosvenor Place 2004 First MIPIM award attained in Asia Details: A luxury 29-storey apartment" located in the heart of Repulse Bay in Hong Kong Island Unit sizes range from 2,800 sqft to 4,200 sqft Total Gross Area: 60,000 sqft Location: Repulse Bay, Island" South, Hong Kong Year of Completion: 2004 Westminster Terrace duplex only apartments, one of its kind in its district Finalist in the MIPIM Asia Awards Residential Developments category (2010) Achieved the highest selling price of HK$25,000/sqft in New Territories Details: 59 luxury residential duplex apartments including two penultimate and one penthouse apartment Unit sizes range from 3,200 sqft to 6,500 sqft Total Gross Area: 202,000 sqft Location: Tsuen Wan, Hong Kong Year of Completion:

21 PRESENTATION 4. DISCIPLINED FINANCIAL MANAGEMENT Low net gearing of 15% Abundant cash and financial investments of c. HK$4.6Bn Interest coverage of 8.5x Undrawn credit facilities of HK$3.4Bn 21

22 PRESENTATION 5. DEVELOPMENT GROWTH STRATEGY Our Growth Strategy Development Pipeline (1) Leverage our reputation and expertise in premium residential development and continue to craft signature projects in Asia Seac Pai Van Coloane, Macau Jardine s Lookout Philosophy of Location, Quality & Design Primary focus on Hong Kong & tier 1 cities of China Residential focused Qingpu Shanghai, China Tongzhou Beijing, China Total expected GFA of 5.8mm Sqft (2) Hung Shui Kiu, Yuen Long Note 1. Expected Completion Date mm sqft attributable to Asia Standard International Group 22

23 PRESENTATION 5. DEVELOPMENT GROWTH STRATEGY: HONG KONG PIPELINE Jardine s Lookout, Hong Kong Asia Standard International aims to set another benchmark for ultra-luxe residential development in HK Location: Development Scheme: Expected Completion Date: Remarks: Perkins Road, Jardine s Lookout, Hong Kong 21 duplex units Saleable Area: To Be Determined rd Joint project with the Grosvenor Group 23

24 PRESENTATION 5. DEVELOPMENT GROWTH STRATEGY: HONG KONG PIPELINE Hung Shui Kiu, Yuen Long A large-scale development in Hung Shui Kiu, strategically located next to a light rail station and is 15 minutes away from the Qian Hai Bay Economic Zone ( ) of Shenzhen Location: Site Area: Development Scheme Expected Completion Date: Hung Shui Kiu New Town, Yuen Long, Hong Kong (Next to light rail station & connected to MTR) Approx. 110,000 sqft Approx Residential Apartments & a smaller component of Retail Saleable Area TBD

25 5. DEVELOPMENT GROWTH STRATEGY: CHINA PIPELINE Qingpu Shanghai, China A premium detached-house development in a traditional highend residential community of Shanghai. Surrounded by 9 international schools and in close proximity to Hongqiao transportation hub, our development is only 30 mins away from Nanjing West Road CBD Location: Qingpu Shanghai, China Site Area: 1,560,000 sqft Total GFA: 1,080,000 sqft Current Status: Under construction Expected Pre-sale Date: mid-late 2014 Expected Completion Date: 2015 Remarks: JV Development 25

26 PRESENTATION 5. DEVELOPMENT GROWTH STRATEGY: CHINA PIPELINE Tongzhou Beijing, China Located in the East 5 th ring of Beijing, this development is only 25 minutes away from the Chaoyang CBD. It is conveniently connected by 2 metro lines, 2 highways and an additional 6 metro lines under planning. A large scale mixed-use development with waterfront views comprised of residential towers, office blocks and retail shops Location: Site Area: Tongzhou Beijing, China 560,000 sqft Total GFA: Approx. 2,360,000 sqft Expected Completion Date: 2016 Remarks: JV development with local partner 26

27 PRESENTATION 5. DEVELOPMENT GROWTH STRATEGY: MACAU PIPELINE Seac Pai Van Coloane, Macau A premium residential development nested on the Seac Pai Van Mountain, it will provide units overlooking the Cotai strip with views of the Venetian and the City of Dreams Location: Seac Pai Van Coloane, Macau Site Area: 195,000 sqft Total GFA: Approx. 1.7mm sqft Expected Completion Date: 2016 Remarks: 100% owned 27

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29 AWARDS & ACCOLADES Champion MIPIM Asia Awards Residential Developments Category (2004) Best Residential High-rise Development! inhong Kong International Property Awards" Bloomberg Television and Google (2011) Honored for Star Seaview Hong Kong Economic Times and" Property Times (2011) Finalist MIPIM Asia Awards Residential Developments Category (2010) Best of the Best Property Award Squarefoot.com.hk (2011) 29

30 STABLE INVESTMENT PORTFOLIO YIELDING RECURRING INCOME PRESENTATION Ample Liquidity & Cash Reserves Cautiously Selective Investment Portfolio In HK$ Million 4,593 As of 31 March, ,891 4, Listed Debt Securities 61% Listed Equity 39% 3,378 Bank Capital 18% Large Cap Banks 30% 4,184 3,704 PRC Developers 39% Other Equity 9% Other Debt 4% Total Debt FY2012 Investment Portfolio FY2013 Bank Balance & Cash Total: HK$4.2Bn Largely Unleveraged Provides a Strong Liquidity Buffer 29