ASEANA PROPERTIES COMPANY PROFILE 6 MAY 2010

Transcription

1 In the face of challenging market conditions, Aseana Properties Limited ( ASPL ) reported a trebling of revenues in 2009 to US$115.3 million, and a pre-tax profit of US$4.3 million compared to a US$27.4 million pre-tax loss in ASPL completed a number of projects, made several selective new investments in both Malaysia and Vietnam, and ended 2009 with net cash of US$47 million. Further completions are anticipated in Malaysia in 2010, together with the start of construction at a key project in Vietnam, and ASPL is looking forward with cautious optimism. SHARE INFORMATION Code ASPL.L Market Full List Sector Real Estate Investment Share price US$ m high/low US$ Issued shares m Market cap US$87.1m Broker Fairfax IS SHARE PRICE PERFORMANCE ASPL sold the final units at its i-zen@kiara I development in 2010, and also completed and handed over the Tiffani by i-zen development where 90% of the units have been sold. These projects accounted for 83% of Group revenues, with most of the balance coming from Sandakan Harbour Square where ASPL bought out the 40% minority stake in 2009 and 81% of phase 2 was sold. In 2009, ASPL also bought out the effective 36% minority stake in the SENI Mont Kiara development where 66% of the units had been sold. Phase 1 should be completed by the end of 2010, when revenues will be recognised, with the remaining phase in 2Q also saw the sale for US$133 million of the second office tower at Kuala Lumpur Sentral which is due for completion in % of the bz-hub office suites at one Mont Kiara have already been sold. This mixed project is due for completion by the end of Q2 2010, at which time or shortly after ASPL also plans to sell both the office tower and the 5-storey retail complex where anchor tenants have been secured. COMPANY DESCRIPTION Aseana Properties Limited (ASPL) is a property development company which invests in development projects in Malaysia and Vietnam. Ireka Development Management Sdn Bhd (IDM), a wholly-owned subsidiary of Ireka Corporation Berhad, a Malaysian listed company with over 40 years experience in construction and property development, is the exclusive Development Manager for ASPL. FINANCIAL INFORMATION (12/2009) Net Asset Value (NAV) US$205.1m NAV per share US$0.96 Realisable Net Asset Value (RNAV) US$264.6m RNAV per share US$1.25 Net cash and bank equivalents US$47m Gearing 58.5% Net gearing 28.2% FINANCIAL DIARY Next AGM 19 May 2010 Next half year end 30 June 2010 Next interims announcement August 2010 Next year end 31 December 2011 Next prelims announcement April 2011 In Vietnam, ASPL acquired a minority stake in Nam Long Investment, a leading local developer, and subsequently announced its first joint project with Nam Long which should be launched by H Separately, Phase 1 construction of the general hospital at the International Hi-Tech Healthcare Park in Ho Chi Minh City is due to begin in 2Q In 2009, ASPL bought back and cancelled 14.99% of its issued shares. This had the expected impact on the Group s share price which ended 2009 at 45.5, more than double the level a year before. ASPL is seeking a similar share buyback mandate at the next AGM. ASPL is trading at a 57% discount to its 2009 year end NAV. It has reported good 2009 results, moving into profitability on sharply higher revenues, and it ended 2009 with a strong balance sheet, including net gearing of 28.2%. Year end 31 Dec Revenue (US$m) Gross Profit (US$m) PBT (US$m) PAT (US$m) EPS (US ) NAV PS (US$) 2008A (27.4) (28.6) (10.86) A Note - forecasts from Fairfax IS are currently unavailable DPS (US )

2 COMPANY HISTORY & OVERVIEW Main market listing in April raised US$152.3m net Focused on residential, commercial and hospitality projects...as sole principal and in JVs 62% Malaysia & 38% Vietnam at end of 2009 Manager is part of Malaysian listed Ireka Group...has 40+ years experience and owns 23% of ASPL Management fee 2% of NAV...plus performance fee, yet to be paid Aseana Properties Limited ( ASPL ) was incorporated in Jersey in early 2007 to invest in property development projects in Malaysia and Vietnam, and was listed on the Main Market of the London Stock Exchange in April 2007, having raised US$152.3 million (net) via a placing of 162 million shares at US$1 per share. ASPL s business model is to acquire, develop and redevelop upscale residential, commercial and hospitality projects, usually at the pre-construction stage. It will however also selectively invest in projects under construction and completed projects. ASPL invests both as sole principal and, where appropriate, in joint arrangements with third parties, usually on the basis that it has management control and the other parties have clear relevant experience or local knowledge. As at the end of 2009, approximately 62% of ASPL s current portfolio is in Malaysia and approximately 38% in Vietnam. Ireka Development Management Sdn Bhd ( IDM ), which has day-to-day management responsibility, is a wholly-owned subsidiary of Ireka Corporation Berhad (ICB ), a company which has been listed on Bursa Malaysia (formerly the Kuala Lumpur Stock Exchange) since 1993 and which has over 40 years of construction and property development experience. ICB ( acquired 48.9 million shares or 19.56% in ASPL in exchange for ASPL s first five properties at listing. This stake was subsequently increased to 23.02% following the cancellation of shares. IDM is paid (i) a quarterly management fee in advance equivalent to 2% pa of ASPL s NAV, and (ii) a performance fee equivalent to 20% of the extent to which the NAV per share exceeds a benchmark based on the original US$1 per share placing price and the weighted average number of shares in issue during each period. If the relevant NAV per share does not increase from one period to another, no performance fee is paid, which has been the case since ASPL s IPO. 2

3 PORTFOLIO As at 31 December 2009 (US$) TYPE COST OF ACQUISITION/ INVESTMENT 1 MARKET VALUE 2 PROJECTS UNDER DEVELOPMENT i-zen@kiara I, Kuala Lumpur, Malaysia Tiffani by i-zen, Kuala Lumpur, Malaysia one Mont Kiara by i-zen, Kuala Lumpur, Malaysia Serviced residences 3,998,840 5,582,247 Luxury condominiums 15,274,279 18,329,125 Office suites, office tower and retail mall 21,453,419 22,126,027 Sandakan Harbour Square Sandakan, Sabah, Malaysia SENI Mont Kiara, Kuala Lumpur, Malaysia Retail lots, hotel and retail mall Luxury condominiums 18,701, ,182, ,991,198 66,172, ,447, ,689,395 Kuala Lumpur Sentral Office Towers & Hotel Kuala Lumpur, Malaysia Office towers and a business hotel 5,171,674 8,557,327 Kota Kinabalu seafront resort & residences Kota Kinabalu, Sabah, Malaysia Resort homes, boutique resort hotel and resort villas 10,354,782 (a) 15,354,516 Sub-totals 148,757, ,055,302 Queen s Place Ho Chi Minh City, Vietnam Residential, offices and retail mall 11,283,460 (b) n/a 4 International Hi-Tech Healthcare Park Ho Chi Minh City, Vietnam Commercial and residential development with healthcare theme 27,601,000 (b) n/a 4 Totals 187,641, ,055,302 ACQUISITIONS PENDING COMPLETION TM Mont Kiara Commercial Development Kuala Lumpur, Malaysia Tan Thuan Dong Project Ho Chi Minh City, Vietnam KLCC Kia Peng Residential Project Kuala Lumpur, Malaysia Commercial and office suites 3,130,609 (c) 3,793,400 Apartments and commercial development 9,600,000 (b) n/a 4 Luxury residential tower 8,370,000 (b) n/a 4 Totals 21,100,609 3,793,400 OTHER Nam Long Investment Corporation Ho Chi Minh City, Vietnam Private equity investment in property developer 17,223,620 n/a 4 1 equity deployed by ASPL, except for: (a) land cost, unleveraged, paid; (b) estimated equity to be deployed, and; (c) expected land cost, unleveraged, to be paid 2 relates to effective interest of ASPL 3 ASPL now owns 100% after acquiring minority interests in no market valuation available 5 initial acquisition 6 non-controlling interest acquisition 3

4 MALAYSIA PROPERTY MARKET OVERVIEW 2009 residential values fell but still above developers launch prices Rentals also under pressure Incentive schemes from 3Q 2009 New launches starting to happen 2009 net yields of 6-8% with AO of 85% but expected to fall in next 3 years AO rates of about 85% Prime malls are favoured Residential The high-end residential market in Malaysia saw weaker demand in 2009 and, as a result, condominium values in the key Kuala Lumpur City Centre and Mont Kiara districts fell by 20-60% from the peak in mid However, these values are generally still above the developers price at launch. Market rentals are also experiencing downward pressure with significant new supply coming onto the market. Until 3Q 2009, most developers delayed launches and concentrated instead on selling existing stock. Incentive schemes have included low deposit requirements, interest waiver periods during construction and, in some cases, principal waiver for a certain period after completion. Developers are now starting to return to the market with new project launches, but sales results have so far been mixed. Offices The Kuala Lumpur office market was generally stable throughout With limited new supply of prime office space, net yields were 6-8% with occupancy rates of about 85%, while about a dozen prime office buildings changed hands. The average occupancy rate is however expected to fall to about 75% during the next three years given the new supply coming on stream. Retail Prime retail malls continue to enjoy good occupancy rates of about 85%. However, retail spending has generally been subdued as a result of the financial crisis, and retailers are generally cautious about committing to retail expansion. Whilst prime malls are expected to see modest rental rate growth, secondary and new malls are expected to come under pressure in MALAYSIA completed projects i-zen@kiara I, Kuala Lumpur (100% owned) Expected GDV (US$m) 39 Cost of acquisition (US$m) /12/09 market value (US$m) 5.6 Market value as % of ASPL RNAV 2.1 Completion (MM/YY) 06/08 % sold 100 This is a 35 storey luxury condominium tower with 305 serviced residences. It was acquired from the Ireka Group as part of a four property US$59.4 million transaction in May 2007 following ASPL s IPO in London. The tower was completed in June 2008 and all units sold. Revenue of US$3.9 million was recognised in 2009 (US$38.4 million in 2008). 4

5 Tiffani by i-zen, Kuala Lumpur (100% owned) Expected GDV (US$m) 110 Cost of acquisition (US$m) /12/09 market value (US$m) 18.3 Market value as % of ASPL RNAV 6.9 Completion (MM/YY) 08/09 % sold 90 This luxury condominium development has 399 apartments in two towers. It was acquired from the Ireka Group as part of the four property transaction referred to above. The towers were completed and handed over in August 2009, and all but 39 of the units have been sold. Revenue of US$91.9 million was recognised in 2009 (US$NIL million in 2008). MALAYSIA projects under development one Mont' Kiara, Kuala Lumpur (50% owned) Expected GDV (US$m) 156 Cost of acquisition(us$m) /12/09 market value (US$m) 22.1 Market value as % of ASPL RNAV 8.4 Target completion (Q YY) 2Q 10 % sold bz-hub phase % sold bz-hub phase 2 90 This mixed project comprises a 20-storey office tower, a 33-storey office suite block (bz-hub) with 186 units, and a 5-storey retail complex on a 3.4 acre freehold site. The development was acquired from the Ireka Group as part of the four property transaction referred to above. Earthworks on site commenced in November 2006, and final completion is expected by the end of Q out of the 186 units in the bz-hub have been sold, and ASPL intends to sell both the office tower and the retail complex on or after completion. Marketing of these has started and anchor tenants have been secured. Sandakan Harbour Square, Sabah (100% owned) Expected GDV (US$m) 141 Cost of acquisition / investment (US$m) /12/09 market value (US$m) 34.0 Market value as % of ASPL RNAV 12.8 Target completion 2011 % sold phase % sold phase % of this four-phase, mixed-use development was acquired from the Ireka Group as part of the four property transaction referred to above. The remaining 40% was acquired in January 2009 for US$3 million in cash plus US$1.3 million in completed units. Phases 1 and 2 are both low-rise office and retail developments, with Phase 1 fully sold in 2007 and 81% of Phase 2 to date. Revenue of US$18.7 million was recognised in 2009 (US$NIL million in 2008). Phases 3 and 4 are a retail and hotel development respectively, with the latter to be managed by as a Four Points by Sheraton hotel. Leasing of the retail space is already underway, with both of phases 3 and 4 due for completion in ASPL intends to sell them on or after completion. 5

6 SENI Mont' Kiara, Kuala Lumpur (100% owned) Expected GDV (US$m) 429 Cost of acquisition / investment (US$m) /12/09 market value (US$m) 92.7 Market value as % of ASPL RNAV 35.0 Target completion (Q YY) phase 1 4Q 10 Target completion (Q YY) phase 2 2Q 11 % sold 66 This is a 605-unit luxury condominium development located in Mont Kiara on 8.83 acres of freehold land, 64% of which was acquired for US$66.2 million from the Ireka Group in May The consideration was satisfied by US$27.1 million in cash and 39.1 million ASPL shares issued to the seller. The remaining 36% was acquired for US$3.4 million in September Two 46-storey tower blocks and two 16-storey low rise blocks are being built, with a total saleable area of over 1.9m square feet. Earthworks started in November 2006 with completion of phase 1 (Blocks A & C 303 units) expected in Q4 2010, with phase 2 (Blocks B & D 302 units) completion in 2Q Sales started in June 2007 with 66% sold to date. Kuala Lumpur Sentral Office Towers & Hotel (40% owned) Expected GDV (US$m) 249 Cost of investment (US$m) /12/09 market value (US$m) 8.6 Market value as % of ASPL RNAV 3.2 Target completion 2012 % sold Towers 1 & This is a mixed use development, on approximately 2.2 acres of land that was acquired in August 2007, and consists of two office towers and a 464 room boutique business hotel. It is a 40/60 joint venture with Malaysian Resources Corporation Berhad ( MRCB ). The office towers have been sold for a total of US$180 million. Piling works started in March 2009, earthworks started in October 2009 and final completion is expected during ASPL is in discussions with an international hospitality management group to finalise the management of the hotel which it intends to sell on or after completion. Seafront Resort & Residences, Kota Kinabalu (80-100% owned) Expected GDV (US$m) 170 Land cost (US$m) /12/09 market value (US$m) 15.4 Market value as % of ASPL RNAV 5.8 ASPL paid US$10.4 million in August 2009 to buy three contiguous plots of sea front land totalling 79.5 acres from a local company. One of the plots (44.5 acres) will be developed into integrated resort homes in an 80/20 joint venture with the vendor s major shareholder. The other two plots, which are 17.5 acres and 17.6 acres respectively, will be developed into a resort hotel and resort villas. Development planning for this project has been completed but ASPL has decided to delay the start until the resort leisure market improves further. 6

7 MALAYSIA acquisitions pending completion TM Mont Kiara Commercial Development, Kuala Lumpur (100% owned) Expected GDV (US$m) 32 Land cost (US$m) /12/09 market value (US$m) 3.8 Market value as % of ASPL RNAV n/a The conditional agreement to acquire this 54,000 sq ft plot of land for US$3.1 million was originally announced in August 2007 and developments plans were submitted in early Subject to approvals, the intent is to build two office towers and a retail complex with a gross floor area of approximately 450,000 sq ft. It is anticipated that the necessary approvals will be received by Q KLCC Kia Peng Residential Project, Kuala Lumpur City Centre (70% owned) Expected GDV (US$m) 79 Cost of investment (US$m) /12/09 market value (US$m) n/a Market value as % of ASPL RNAV n/a Target launch (Q YY) 1H 11 This 43,559 sq ft plot has been acquired by a 70/30 joint venture between ASPL and the Ireka Group which was agreed in December The location is in the heart of Kuala Lumpur, with other buildings on Jalan Kia Peng including the Grand Hyatt Hotel (under construction), the KLCC Convention Centre, KLCC Park and the Petronas Towers. The intention is to build an upmarket residential tower which, subject to completion and obtaining the necessary approvals, ASPL expects to launch in 1H VIETNAM PROPERTY MARKET OVERVIEW Mid-high end residential market under pressure but affordable market holding up Stronger confidence from 2H 2009 with higher values and improved sales of new mid-high end launches Residential The mid to high-end residential property market in Ho Chi Minh City started 2009 sluggishly, continuing the trend from Overall, buyers remained on the sidelines due to general economic uncertainties as well as an expectation of lower prices. However, the affordable housing market performed much better as a large proportion of the city s population of 9 million continues to seek improved living conditions. By the end of 2Q 2009, confidence in the market appeared stronger as various economic stimulus measures were introduced, although some developers remained cautious and were still reducing prices and offering further incentives to buyers. Nevertheless, secondary values began to increase by 2 to 3% quarter-on-quarter, while newly launched mid to high-end developments by reputable developers in sought-after areas saw reasonable sales. Government measures to liberalise property ownership restrictions on overseas Vietnamese and foreigners, introduced in 2009, are expected to be positive for the market in the medium to long term. 7

8 Offices New Grade A supply doubled in 2009 and both AO and rental rates were weaker but supply and demand of Grade A now stable The supply of newly completed Grade A offices in Ho Chi Minh City doubled from approx. 81,000 square metres in 2008 to about 166,000 square metres in Not surprisingly, given the weaker overall economic environment, this increased the average vacancy rate from a low of 1% in 3Q 2008 to about 26% in 4Q As a result, average monthly rentals fell from a high of US$71 psm per month to US$40 psm per month. Grade B and C offices were similarly affected. No new Grade A or B office space was completed in 4Q 2009 and ASPL believes that the supply/demand balance is now at a sustainable level. Foreign banks and multinationals continue to be the biggest drivers of demand for Grade A office space. Retail 15% increase in prime rental rates with high AO of 65.3% but suburban malls under pressure The prime retail market in Ho Chi Minh City saw average rents increase from US$84 psm per month in 2008 to US$97 psm per month in 4Q A number of foreign brands, such as Hermes, Debenhams, Naf Naf, Aldo, Morgan de Toi and Hard Rock Cafe entered the market in The average occupancy rate in the Central Business District is 95.3%. However, rentals in suburban malls saw further downward pressure, with an average of approximately US$47 psm per month in the fourth quarter of VIETNAM projects under development Queen s Place, Ho Chi Minh City (65% owned) Expected GDV (US$m) 195 Cost of investment (US$m) /12/09 market value (US$m) n/a Market value as % of ASPL RNAV 0.03* * based on cost This is a mixed use development which will consist of two residential towers, a strata office tower and a retail mall with a total area of approx. 996,000 sq ft. It is a 65/35 joint venture with local developer Binh Duong Corporation, with ASPL expecting to invest US$11.3 million in the project. The required investment license was received in June The site is currently a social housing area and resettlement planning is underway, with construction expected to start in

9 International Hi-Tech Healthcare Park, Ho Chi Minh City (51% owned) Expected GDV (US$m) 770 Cost of investment (US$m) /12/09 market value (US$m) n/a Market value as % of ASPL RNAV 7.9* * based on cost In August 2007, ASPL announced that, following receipt of licensing approvals, it had acquired a 51% stake in this high profile development which, when completed, will have over 10.8 million sq ft of gross floor area on a site area of 93 acres. The project is to be developed in five phases over an estimated nine years, the first phase of which will involve a 250 bed tertiary care, teaching hospital with residences, for which construction planning is at an advanced stage. The investment license was obtained in July 2008, a construction license for the hospital was granted in April 2010, and piling work for the hospital is expected to start in 2Q The next phases will include medical centres, serviced apartments, offices, a retail mall and a hotel. Negotiations have started with a number of potential investor partners in the healthcare and educational fields for individual projects within the park. VIETNAM acquisitions pending completion Tan Thuan Dong, Ho Chi Minh City, Vietnam (80% owned) Expected GDV (US$m) 120 Cost of investment (US$m) /12/09 market value (US$m) n/a Market value as % of ASPL RNAV n/a Target launch (Q YY) 1H 11 This is the first project announced with Nam Long Investment Corporation, in which ASPL bought a strategic minority stake in mid Subject to receipt of an investment license and the transfer of land use rights, ASPL signed an agreement in November 2009 under which it will take an 80% stake in this development for US$9.6 million. The development will consist of two residential towers with supporting commercial and retail facilities totalling approximately 710,000 sq ft. Development planning is advanced and ASPL anticipates that the required investment license will be received in 4Q 2010 and sales to launch in HI VIETNAM other Nam Long Investment Corporation (17.2% owned) Cost of investment (US$m) /12/09 market value (US$m) n/a Market value as % of ASPL RNAV 6.4* * based on cost ASPL acquired this strategic minority stake in July 2007 for US$17.2 million, with the last tranche paid in January ASPL also signed an exclusive agreement to co-develop at least three projects with Nam Long in Ho Chi Minh City. The first of these is the Tan Thuan Dong project. Nam Long is a private Vietnamese property developer, established in 1992, which is a leading player in the Ho Chi Minh City property market, particularly at the low-to-medium end. It has a land bank of over 500 hectares in and around this important city in Vietnam. 9

10 VIETNAM discontinued Seafront resort development, Danang ASPL conditionally acquired a 60% interest in 202,800 sq mt of sea-front land in Danang, Vietnam for US$18 million in 2007, with the intention of developing a luxury resort hotel with additional villas, as well as a separate condominium tower. ASPL decided in 2009 not to proceed with this project after the acquisition agreement expired. Wall Street Centre project, Ho Chi Minh City ASPL announced in November 2009 that, due to administrative planning and other delays, it had withdrawn from this proposed development. ASPL has recovered its US$5.0 million deposit, with interest, and has no further involvement. INCOME STATEMENT Year ended 31 December (US$'000) Sale of development properties 114,492 38,369 Sale of completed units Revenue 115,256 38,369 Cost of sales (100,746) (36,112) Gross profit/(loss) 14,510 2,258 Other income Administrative expenses (1,064) (1,382) Foreign exchange (loss)/gain 1,827 (10,171) Management fees (4,196) (4,744) Other operating expenses (7,890) (15,671) Operating profit/(loss) 3,435 (29,628) Investment income 2,115 4,534 Finance costs (595) (357) Impairment of investment in associate 0 (1,957) Share of results of associated company (607) (4) Profit/(loss) before tax 4,348 (27,412) Tax (3,635) (1,143) Profit/(loss) after tax 713 (28,555) Exchange differences on translating foreign operations (209) (534) Total net comprehensive income 504 (29,088) Attributable to equity holders 916 (27,653) Attributable to minority interests (412) (1,435) Basic and diluted EPS (US cents) 0.37 (10.86) Change in revenue recognition in 2009 with prior accounts restated Currently 5 revenue generating projects in Malaysia Effective from 1 January 2009, ASPL adopted a number of IFRSs, in particular IFRIC 15 and IAS 18 which requires that revenue from property sales is recognised when effective ownership control is transferred to the buyer upon issuance of the completion certificate or occupation permit. This adoption is retrospective, hence ASPL s accounts for 2008 and 2007 have been restated. ASPL has a number of revenue generating reporting segments under IFRS 8, which are shown below with their respective 2009 numbers. These are all in Malaysia as development activities have not started in Vietnam. 10

11 Year ended 31 December (US$m) Ireka Land 1 ICSD Ventures 2 Amatir 3 Resources Others Consolidated Revenue Gross profit/(loss) Profit/(loss) before tax (2.62) (1.56) 4.35 Share of results of associate (0.61) (0.61) Tax (2.46) (0.99) 0 (0.18) (3.63) Profit/(loss) after tax (2.62) (1.74) 0.71 Segment assets Segment liabilities i-zen@kiara I, Tiffani by i-zen and one Mont Kiara 2 Sandakan Harbour Square 3 SENI Mont Kiara 200% increase in 2009 revenues...with cost of sales written off on completion...significantly lower operating costs in and slightly lower management fee...produced PBT of US$4.3m, compared to US$27.4m loss in revenue of US$115.3 million was a 200% increase over 2008, and almost entirely arose from the sale of development properties in i-zen@kiara I (US$3.9 million), Tiffani by i-zen (US$91.9 million) and Sandakan Harbour Square phase 2 (US$18.7 million). Under IAS 18, the cost of sales is now written off on completion, instead of over the life of the development assets as previously shown. Operating costs included an unrealised foreign exchange gain of US$1.9 million (2008: unrealised loss of US$9.9 million) due to a weaker US$, as well as a US$9.3 million write down against ASPL s first five properties (2008: US$4.0 million) which it acquired from the Ireka Group in Other operating expenses were mainly marketing costs and effectively halved in 2009 in line with the status of project launch activity. The management fee paid to IDM in 2009 was US$4.2 million (2008: US$4.7 million) based on 2% of ASPL s NAV. No performance fee was paid. The pre-tax profit in 2009 was US$4.3 million, compared to a US$27.4 million loss in

12 BALANCE SHEET As at 31 December (US$'000) PPE 1, Investment in associate Available-for-sale investments (Nam Long Investment) 17,224 13,024 0 Intangible assets 17,174 10,694 0 Prepaid land leasehold payments 0 0 2,301 Land held for property development 22,112 17,419 16,798 Long term receivables 0 7,218 6,048 Deferred tax assets 7,167 4,968 2,377 Non-current assets 64,747 54,243 27,913 Inventories completed units 22, Property development costs 354, , ,284 Trade and other receivables 24,393 16,939 18,609 Amount due from associate Cash and cash equivalents 61,957 67, ,891 Current assets 464, , ,784 Total assets 528, , ,697 Trade and other payables (194,306) (143,626) (121,470) Finance lease liabilities 0 (21) (24) Bank loans and borrowings (36,976) (3,063) (17,381) Current tax liabilities (2,318) (1,905) (2,986) Current liabilities (233,600) (148,614) (141,861) Amount due to minority interests (2,887) (2,872) 0 Finance lease liabilities 0 (20) (42) Bank term loans (20,147) (45,801) (26,584) Long term loans 0 (47,326) (35,891) Medium term notes (62,737) 0 0 Non-current liabilities (85,772) (96,019) (62,517) Total liabilities (319,371) (244,633) (204,378) Net assets 209, , ,319 Breakdown of reporting segment assets ASPL has a number of reporting segments under IFRS 8, which are shown below with selected 2009 numbers. These are all in Malaysia as development activities have not started in Vietnam. Furthermore, they only include five projects in Malaysia as the others have not yet reached revenue generating stage. Year ended 31 December (US$m) Ireka Land 1 ICSD Ventures 2 Amatir 3 Others Consolidated Resources Segment assets Segment liabilities Capital expenditure i-zen@kiara I, Tiffani by i-zen and one Mont Kiara 2 Sandakan Harbour Square 3 SENI Mont Kiara 4 Capex consists mainly of property development costs US$15m overdrafts + US$42m bank loans US$63m notes tied to Mont Kiara ASPL s debt is made up of US$14.96 million in outstanding overdrafts and US$42.2 million in bank loans, of which US$22 million is due within 12 months. The bank loans attract interest rates ranging from 3.59% pa to 6.55% pa and are secured by land that is shown under property development costs, as well as by an ASPL corporate guarantee. The US$62.7 million in medium-term notes were issued by a subsidiary that was acquired for a nominal sum in March 2009 to fund the one Mont Kiara development. The 12 notes attract interest rates ranging from 3.95% pa to 13% pa, with a weighted average of 6.29% pa, and have maturity dates between March 2011 and June

13 Total gearing of 58.4% and net gearing of 28.2% ASPL s total debt at the end of 2009 was US$119.9 million, representing gearing of 58.4%, an increase on 2008 s gearing of 45.8% because of the 37.5 million shares that ASPL bought back and cancelled. Net gearing at year end was 28.2%. CASH FLOW Year ended 31 December (US$ 000) Net profit/(loss) before taxation 4,348 (27,412) Investment income (2,115) (4,534) Unrealised foreigh exchange loss/(gain) (1,855) 9,914 Depreciation of PPE Share of results of associate Goodwill written off 7 0 Impairment of investment in associate 0 1,957 Cash flows from operating activities before change in working capital 1,037 (20,016) (Increase)/decrease in inventories (22,906) 0 (Increase)/decrease in property development costs (31,227) (53,442) (Increase)/decrease in leasehold land payment 0 2,196 (Increase)/decrease in receivables (236) 501 Increase/(decrease) in payables 49,423 29,792 Cash absorbed by operations (3,910) (40,969) Tax paid (5,489) (4,743) Net cash flows (used in)/from operating activities (9,399) (45,713) Acquisition of subsidiaries, net of cash (7,630) (4,832) Acquisition of land held for property development (4,507) (1,382) Advances to associates (785) 0 Proceeds from disposal of PPE 59 0 Purchase of PPE (824) (29) Purchase of shares in associate 0 (2,568) Purchase of available-for-sale investments (Nam Long) (4,200) (13,024) Investment income received 2,115 4,534 Withdrawal of/(placement of) short term bank deposits 2,228 (1,880) Net cash flows from investing activities (13,544) (19,180) Repayment of borrowings (37,838) (14,065) Drawdown of borrowings 49,063 32,093 Repayment of finance lease liabilities (40) (26) Share buy back (6,007) 0 Net cash flows from financing activities 5,178 18,002 Cash and cash equivalents at beginning of period 62, ,121 Effect of changes in exchange rates 1,904 (10,375) Net increase/(decrease) in cash and cash equivalents (17,764) (46,890) Cash and cash equivalents at end of period 46,996 62, m shares bought back in 2009 with ASPL seeking further mandate Greatly reduced cash outflow led to US$47m in net cash at end of 2009 ASPL bought 37.5 million of its own shares in 2009 at an average price of US$0.16. These were equivalent to 14.99% of ASPL s shares in issue at that time. The shares have subsequently been cancelled and ASPL now has approximately million shares in issue. The upcoming AGM on 19 May 2010 includes a resolution which, if approved, will allow ASPL to purchase up to another 14.99% of its issued shares during a 12-month period to 2 June % of such shares can then be held as treasury shares. While operating cash outflow in 2009 was US$9.4 million, this was a major improvement on 2008 when the outflow was US$45.7 million. After further subsidiary investments, land acquisitions, the final investment in Nam Long and other activities, ASPL ended 2009 with US$47 million in net cash and equivalents. 13

14 DIRECTORS ASEANA PROPERTIES NON-EXECUTIVE CHAIRMAN Mohammed Azlan bin Hashim 1 2 NON-EXECUTIVE DIRECTOR Christopher Lovell 1 NON-EXECUTIVE DIRECTOR David Harris 2 3 NON-EXECUTIVE DIRECTOR Ismail bin Shahudin 1 3 NON-EXECUTIVE DIRECTOR John Lynton Jones 2 3 NON-EXECUTIVE DIRECTOR Azlan was appointed NEC in March He is also Chairman of Westcomb Financial Group Limited and Asiasons Capital Limited, and a director of Parkway Holdings Limited which are public listed companies on the Singapore Exchange. In Malaysia, he is Chairman of several public listed entities, listed on Bursa Malaysia, including D&O Ventures Berhad and SILK Holdings Berhad. He has served as Chief Executive of Bumiputra Merchant Bankers Berhad, Group Managing Director of Amanah Capital Malaysia Berhad and Executive Chairman of Bursa Malaysia Berhad Group. Mr Lovell is lawyer who has practised in Jersey since He was a partner in Theodore Goddard between 1983 and 1993 before setting up his own legal practice in Jersey. In 2000 he was one of the founding principals of Channel House Trustees Limited, a Jersey regulated trust company, which was acquired by Capita Group plc in 2005, when he became a director of Capita s Jersey regulated trust company. He joined Governance Partners LP, an independent corporate governance practice, on his retirement from Capita in January His other current NED positions include Treveria Plc, NR Nordic & Russia Properties Limited and Public Service Properties Investments Limited Mr Harris is currently Chief Executive of InvaTrust Consultancy Ltd, a company that specialises in the provision of investment marketing services to the Financial Services Industry in both the UK and Europe. He was formerly Managing Director of Chantrey Financial Management Ltd, a successful investment and fund management company linked to Chartered Accountants, Chantrey Vellacott. From 1995 to 2000 he was Director of the Association of Investment Companies overseeing marketing and technical training. He is currently a non-executive director of a number of quoted companies in the UK including Character Group plc, COBRA Holdings plc, Small Companies Dividend Trust plc, F&C Managed Portfolio Trust plc and Manchester & London Investment Trust plc. Ismail was appointed to the Board of ASPL in March He is chairman of SMPC Corporation Berhad and also serves as Independent Non-Executive board member of several Malaysia public listed entities, among others, Malayan Banking Berhad which is Malaysia s largest bank, Plus Express Berhad, Mutiara Goodyear Development Berhad, EP Manufacturing Berhad, and UEM Group Berhad, is a non-listed wholly owned subsidiary of Khazanah Nasional Berhad, one of the Malaysia government s investment arms. John is chairman of Bourse Consult, a consultancy that advises clients on initiatives relating to exchange trading, regulation, clearing and settlement. He has an extensive background as a chief executive of several exchanges in London, including the International Petroleum Exchange, the OM London Exchange, and Nasdaq International (whose operations he set up in Europe in the late 1980s). John serves on the panel of City experts created by the Corporation of the City of London, was the founding chairman of the Dubai International Financial Exchange from 2003 until 2006, and is on the board of Kenetics Group Limited, an AIM-listed company. Gerald Ong Chong Keng Gerald is the CEO of Singapore based PrimePartners Corporate Finance Group and has over 20 years of corporate finance related experience at various financial institutions providing a wide variety of services such as advisory, M&A activities and fund raising exercises. He has been the Chairman of the Singapore Investment Banks Association Corporate Finance Committee since Audit Committee 2 Nomination Committee 3 Remuneration Committee 14

15 MANAGEMENT TEAM CHIEF EXECUTIVE OFFICER CHIEF FINANCIAL OFFICER CHIEF OPERATING OFFICER IREKA DEVELOPMENT MANAGEMENT Lai Voon Hon He is the CEO of IDM and Executive Director of Ireka Corporation which he joined in 1994 as the Group General Manager. He was appointed to the Board of Directors in 1996 and is also a Director of several subsidiaries within the Ireka Group. An architect by profession, he has practiced in London, Hong Kong and Malaysia prior to joining Ireka. He is a registered Professional Architect with the Board of Architects, Malaysia. Monica Lai Voon Huey She is the CFO of IDM and Executive Director of Ireka Corporation which she joined as the Group Financial Controller in She was appointed to the Board of Directors in 1999 and is also a Director of several subsidiaries within the Ireka Group. She worked for Ernst & Young in England and KPMG in Hong Kong prior to joining Ireka. She is a fellow member of several institutes that include the Institute of Chartered Accountants, England and Wales; Chartered Accountants, Malaysia; and the Malaysian Institute of Taxation. Lim Ech Chan He is the COO of IDM and previously worked as the Assistant Director of Planning for City Hall of Kuala Lumpur, as a general manager of a publicly listed property development company, and as a Director of GDP Planners, a premier architectural firm in Kuala Lumpur. He is a registered Professional Town Planner in Malaysia and a member of the Royal Town Planning Institute, London. 15

16 ASPL INFORMATION Registered Address Website IDM INFORMATION Head office 12 Castle Street St Helier Jersey JE2 3RT Channel Islands G-1, Kiara II 1 Jalan Kiara, Mont Kiara Kuala Lumpur Malaysia Telephone LEADING SHAREHOLDERS As at 31 March 2010 % Ireka Corporation Berhad Legacy Essence Limited European Clearing Henderson New Star Standard Life Investments 7.06 Dr Thong Kok Cheong 5.03 City Insights contact: Chris Munden cmunden@cityinsights.co.uk City Insights Limited 131 Finsbury Pavement, London EC2A 1NT Tel: 44 (0) Fax: 44 (0) PROFIT & LOSS - Year ended 31 December (US$'000) Revenue 115,256 38,369 Cost of sales (100,746) (36,112) Gross profit/(loss) 14,510 2,258 Other income Administrative expenses (1,064) (1,382) Foreigh exchange (loss)/gain 1,827 (10,171) Management fees (4,196) (4,744) Other operating expenses (7,890) (15,671) Operating profit/(loss) 3,435 (29,628) Investment income 2,115 4,534 Finance costs (595) (357) Impairment of investment in associate 0 (1,957) Share of results of associated company (607) (4) Profit/(loss) before tax 4,348 (27,412) Tax (3,635) (1,143) Profit/(loss) after tax 713 (28,555) BALANCE SHEET - As at 31 December (US$'000) PPE 1, Available-for-sale investments 17,224 13,024 Intangible assets 17,174 10,694 Land held for property development 22,112 17,419 Others 7,167 12,760 Non-current assets 64,747 54,243 Inventories 22,906 0 Property development costs 354, ,291 Trade and other receivables 24,393 16,939 Amount due from associate Cash and cash equivalents 61,957 67,252 Current assets 464, ,482 Total assets 528, ,726 Trade and other payables (194,306) (143,626) Bank loans and borrowings (36,976) (3,063) Others (2,318) (1,926) Current liabilities (233,600) (148,614) Bank term loans (20,147) (45,801) Long term loans 0 (47,326) Medium term notes (62,737) 0 Others (2,887) (2,892) Non-current liabilities (85,772) (96,019) Total liabilities (319,371) (244,633) Net assets 209, ,093 CASH FLOW - Year ended 31 December (US$'000) Net cash flows (used in)/from operating activities (9,399) (45,713) Acquisition of subsidiaries, net of cash (7,630) (4,832) Acquisition of land held for property development (4,507) (1,382) Purchase of available-for-let investments (4,200) (13,024) Others 2, Net cash flows from investing activities (13,544) (19,180) Repayment of borrowings (37,838) (14,065) Drawdown of borrowings 49,063 32,093 Repayment of finance lease liabilities (40) (26) Share buy back (6,007) 0 Net cash flows from financing activities 5,178 18,002 Cash and cash equivalents at beginning of period 62, ,121 Effect of changes in exchange rates 1,904 (10,375) Net increase/(decrease) in cash and cash equivalents (17,764) (46,890) Cash and cash equivalents at end of period 46,996 62,856 This document is designed to 'inform and educate' and is intended for professional advisers. The information contained in this document has been compiled from sources believed to be reliable, but no warranty, expressed or implied, is given that the information is complete or accurate or that it is fit for a particular purpose. All such warranties are expressly disclaimed and excluded. Any opinions, recommendations and forecasts referred to may have been superseded and thus not necessarily be the current opinions, recommendations and forecasts of the relevant analyst/broker. This document is not an offer to buy or sell, or a solicitation of an offer to buy or sell, the securities mentioned. Any recommendations referred to do not necessarily imply the suitability of particular securities for individual situations. The value of securities and the income from them may fluctuate. It should be remembered that past performance is not necessarily a guide to future performance and that some companies may be pre-profits and/or pre-revenues, and therefore are high risk situations. You are strongly advised to have a professional adviser and to contact him/her before entering into any contract to buy or sell any security. By reading this document, I confirm that I have read and understand the above, that I am a professional investment adviser, and that I shall not hold City Insights or any of its members and connected companies liable for any loss that I may sustain should I decide to buy or sell any of the mentioned securities. 16