Accordia Golf Trust Presentation Material

Transcription

1 Accordia Golf Trust Presentation Material 30 August to 9 September August 2016 Stock code: ADQU Ver 1.2

2 Important Notice This presentation is intended solely for your information only and does not constitute an invitation or offer to acquire, purchase or subscribe for units ( Units ) in Accordia Golf Trust ( AGT or the Trust ). The information and opinions in this presentation are subject to change without notice, its accuracy is not guaranteed, and it may not contain all material information concerning AGT. No representation or warranty, expressed or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of, the information or opinions contained herein. None of the Trust, Accordia Golf Trust Management Pte. Ltd. (the Trustee-Manager ), Accordia Golf Co., Ltd. (the Sponsor ), and Daiwa Real Estate Asset Management Co. Ltd., or any of their respective affiliates, directors, officers, employees, agents, advisers or representatives shall have assume any responsibility or any liability whatsoever (in negligence or otherwise) for any loss howsoever arising, whether directly or indirectly, from any use, reliance or distribution of this presentation or its contents or otherwise arising in connection with this presentation. Nothing contained herein is, or shall be relied upon as, a promise or representation, whether as to the past or the future and no reliance, in whole or in part, should be placed on the fairness, accuracy, completeness or correctness of the information contained herein. Further, nothing in this document should be construed as constituting legal, business, tax or financial advice. The information in this presentation may not be forwarded or distributed to any other person and may not be reproduced in any manner whatsoever. Any forwarding, distribution or reproduction of this information in whole or in part is unauthorised. Failure to comply with this directive may result in a violation of the United States Securities Act of 1933, as amended or the applicable laws of other jurisdictions. This presentation contains forward-looking statements that may be identified by their use of words like plans, expects, will, anticipates, believes, intends, depends, projects, estimates or other words of similar meaning and that involve assumptions, risks and uncertainties. All statements that address expectations or projections about the future and all statements other than statements of historical facts included in this presentation, including, but not limited to, statements about the strategy for growth, product development, market position, expenditures, and financial results, are forward-looking statements. Such forward-looking statements are based on certain assumptions and expectations of future events regarding the Trust's present and future business strategies and the environment in which the Trust and the Trustee-Manager will operate, and must be read together with those assumptions. The Trustee-Manager does not guarantee that these assumptions and expectations are accurate or will be realised. Actual future performance, outcomes and results may differ materially from those expressed in forward-looking statements as a result of a number of risks, uncertainties and assumptions. There can be no assurance that such expectations will be met. Representative examples of these risks, uncertainties and assumptions include (without limitation) general global, regional and local economic conditions, regulatory developments and changes in the golf course industry, implementation of new changes in government regulations, man-made or natural disasters that affect the business or assets of AGT, and general global, regional and local political and social conditions and the implementation of or changes to existing government policies in the jurisdictions where AGT operates. Predictions, projections or forecasts of the economy or economic trends of the markets are not necessarily indicative of the future or likely performance of the Trust. Past performance is not necessarily indicative of future performance. The forecast financial performance of the Trust is not guaranteed. You are cautioned not to place undue reliance on these forward-looking statements, which are based on the Trustee-Manager's current view of future events. The Trustee-Manager does not assume any responsibility to amend, modify, revise or update any forward-looking statements, on the basis of any subsequent developments, information or events, or otherwise. While the Trustee-Manager has taken care to ensure that information is extracted accurately and in its proper context, the Trustee-Manager has not independently verified any of the data from third party sources. The value of the Units and the income derived from them may fall or rise. The Units are not obligations, or deposits in, or guaranteed by the Trustee-Manager. An investment in the Units is subject to investment risks, including the possible loss of the principal amount invested. The holders of the Units (the Unitholders ) have no right to request that the Trustee-Manager redeem or purchase their Units while the Units are listed. It is intended that Unitholders may only deal in their Units through trading on Singapore Exchange Securities Trading Limited (the SGX-ST ). Listing of the Units on the SGX-ST does not guarantee a liquid market for the Units. 2

3 Contents 1. About Accordia Golf Trust 2. Financial Highlights 3. Portfolio Updates 4. Appendix 3

4 About Accordia Golf Trust Midono Country Club, Tokyo Region 4

5 ACCORIA GOLF TRUST 1 Unique Asset 2 Stable Cash Flow 3 Attractive Yield 4 Growth Opportunities

6 1 Unique Asset: Golf Courses (89 courses in Japan) 70% are located in the 3 Key Metropolitan Areas Total Appraisal Value: JPY billion (1) Greater Tokyo Region No of Golf Courses 35 Appraisal Value (JPY bil) Greater Osaka Region No of Golf Courses 15 Appraisal Value (JPY bil) Other Regions No of Golf Courses 27 Appraisal Value (JPY bil) Greater Nagoya Region No of Golf Courses 12 Appraisal Value (JPY bil) (1) Appraisal Value is as at 31 December

7 1 Unique Asset : Trust Structure Singapore s first listed Business Trust with golf course assets Listed on Singapore Exchange (SGX-ST) on 1 August

8 1 Unique Asset: Income and Expense Structure Operating Income (FY15/16) Membership Revenue 9% Restaurant Revenue 24% Other 1% Golf Course Revenue 66% Operating Expenses (FY15/16) Operating Lease Expenses,4.6% Utility Expenses 5.2% SG&A and others 17.8% Labour & Outsourcing Expenses 36.8% Depreciation & Amortisation, 7.7% Golf course revenue: play fees, caddie fees, accommodation fees, driving range fees, etc. Restaurant revenue: sales at golf course restaurant and golf course shops, hotel sales of food and drinks, etc. Golf Course Maintenance & Repair Cost, 5.8% Golf Course Management Fee 13.6% Merchandise & Material Expenses,8.4% Membership revenue: annual membership fee, new membership fees, name transfer fee, etc. 8

9 2 Stable Cash Flows Actual number of visitors for AGT s golf courses remains stable over the years. EBITDA (1) (based on JGAAP) reflects the stability of visitors regardless of unfavourable events. (JPY bil) 16 EBITDA (1) Number of visitors million FY10/11 FY11/12 FY12/13 FY13/14 FY14/15 FY15/16 0 Earthquake in March Economy stagnant Heavy snowfall Warmer winter (1) Earnings before Interest, Taxes, Depreciation and Amortization ( EBITDA ): These figures are on JGAAP basis and for illustration purposes and have not been audited or verified by third parties. 9

10 3 Attractive Yield Income Available for Distribution (FY15/16) Distribution Policy (JPY mil) JPY 6,041 mil (full FY15/16) Semi-annual basis (paid in SGD, in June and December) 4,000 3,500 3,000 2,500 2,000 1,500 1,000 2,468 (1) 3, H FY15/16 2H FY15/16 Distribution per Unit (DPU) (FY15/16) (1) To distribute at least 90% income available for distribution. 1) Numbers are (100%) distributable amounts and DPU are based on actual JPY/SGD exchange rates used for distributions; 4Q & 3Q FY15/16 = 80.29, 2Q & 1Q FY15/16 = 86.86, Period DPU (2) 1H FY15/16 2H 2.58 cent 0.26 (2) 4.05 cent (10% reserved is in 2H) * 2) The 10% reserved amount (JPY246 million) retained in 1H FY15/ cent Total number of units for the each period = 1,099,122,000 10

11 3 Attractive Yield Distribution Yield (FY15/16) Yield (%) 12.0 AGT DPU Yield: 11.1% DPU (FY15/16): 6.63 Singapore cents 10.0 AGT unit price (31 Mar 2016): 60 Singapore cents AGT SREITs JREITs Source: AGT: Calculation is based on the full year DPU/Unit price as at 31 March S$0.60 SREITs: Market Updates as at 7 April 2016 from the Singapore Exchange My Gateway. Data is as at 6 April 2016 and includes 20 REITs JREITs: March 2016 J-REIT Report from The Association for Real Estate Securitization. Data is as at 31 March 2016 and includes 53 REITs 11

12 4 Growth: Pipeline from Sponsor Assets under Sponsor Accordia Brand 18 Golf Courses (Call Option) Right of First Refusal ( ROFR ) AGT has a right of first refusal for ALL golf course related assets owned by the Sponsor Call Option granted to AGT AGT can initiate asset purchase negotiations with the Sponsor any time over the relevant assets subject to the call option 7 Golf Courses Golf courses held by Sponsor Accordia brand Non-Accordia brand Non-Accordia Brand 19 Golf Courses 26 Driving Ranges Data as at 31 December

13 Strength of "Accordia" Brand Golf Course Accordia Brand Golf Courses Main Target: Middle Class Middle class golf courses with higher number of visitors Provide Casual atmosphere with Reasonable Play Fees Higher number of Visitors (utilisation) Strength of Accordia Brand Golf Courses 1. Well located golf courses 2. Sponsored by the Largest Golf Operators in Japan (*) with Economies of Scale, Efficient Golf Course Operation, and Effective Brand Management (* by market share) 13

14 Strength of "Accordia" Brand Golf Course Strength of Accordia Brand Golf Courses 3. Expertise in Expanding Tee Time Slots 4. Ability to Attract and Retain Customers with Competitive Play Fee, and Direct/Indirect Marketing 5. Large and Loyal Customer Base Loyalty Card Holders of Accordia Golf (million) Visitor Silver Member High Market Penetration Rate 4.14 million loyalty card holders (as at 31 March 2016). approx. 57.5% of total number of golf players in Japan (7.2 million (1) ). Mar 2012 Mar 2013 Mar 2014 Mar 2015 Mar 2016 Source: Sponsor/Golf Course Manager Member : member loyalty card holders. (member of each golf course) Silver : non-member Gold and Silver status loyalty card holders (frequent player). Visitor : non-member White status loyalty card holders. 14

15 Strength of "Accordia" Brand Golf Course Higher Number of Visitors Higher numbers of visitors would drive stable operating cash flows. Number of Visitors per Golf Course per year Thousands 60 AGT s Average Japan national average Approx. 45% higher than national average 10 - FY09/10 FY10/11 FY11/12 FY12/13 FY13/14 (1) Average number of visitors is calculated by dividing total number of visitors by 18 holes converted number of golf courses. Source: Nihon Golf-jo Keieisha Kyokai 15

16 Number of Plays in Japan Remains Stable Number of plays in Japan No of Plays (mil) Number of Play and Number of Plays Per Player No of Plays (mil) Over 70s No of Play per Player No. of Play per Player Number of plays in Japan remains stable as the number of plays per player has been increasing. Proportion of senior plays has been increasing as well Source: Sponsor/Golf Course Manager Source: Nihon Golf-jo Keieisha Kyokai, Japan 16

17 Experienced Board and Management Team Management Team Mr. Yoshihiko Machida, CEO and Executive Director Extensive experience in golf course management business and strategic planning, including 10 years of golf course management experience in Accordia Group Previously a Corporate Executive Officer and the Chief of General Affairs and Personnel Division of the Sponsor, where he exercised an oversight and supervisory role over the general business Mr. Takuya Nagano, Executive Director and Head of IR Mr. Shunichi Nemoto, CFO 20 years of investment banking experience Experience in IPO, Equity and Debt Capital Market, and Merger and Acquisition transactions including advising Japanese companies in their listings on the SGX-ST Previously Head of Investment Banking, South East Asia, in Daiwa Capital Markets Singapore 13 years of financing and accounting experience Extensive experience in and knowledge of finance and accounting both J-GAAP and IFRS From 2000, he has been involved in accounting and tax practice as a certified public accountant in Japan Mr. Takahiro Kurosawa, Chief Investment & Asset Management Officer 25 years of finance asset management and real estate experience Previously a senior executive in the Sponsor where he was mainly in charge of the buying and selling of golf courses Mr. Khoo Kee Cheok, Chairman and Independent Director Board Members Has extensive experience in directorship and management roles, having had 28 years of experience in the banking industry at DBS and The Bank of East Asia Currently a business consultant to various SMEs in Singapore Mr. Yoshihiko Machida, CEO and Executive Director (see Management Team) Mr. Takuya Nagano, Executive Director and Head of IR (see Management Team) Mr. Chong Teck Sin, Independent Director Currently sits on the board of 3 Singapore-listed companies and 1 Hong Kong-listed company. Extensive experience in listed companies, the technology and finance and banking sectors Held several senior appointments in government organisations and financial institutions in Singapore and Japan Mr. Hitoshi Kumgai, Independent Director Extensive experience in providing audit and transactions services to client companies at KPMG and other accounting firms Has been a representative partner of a financial advisory firm dealing with due diligence, valuation and deal management An auditor for some Japanese companies Audit and Risk Committee Mr. Chong Teck Sin, Chairman Mr. Khoo Kee Cheok, Member Mr. Hitoshi Kumgai, Member 17

18 Financial Highlights Midono Country Club, Tokyo Region 18

19 FY 15/16 Key Financials JPY million FY15/16 Full Year (Apr to Mar) FY14/15 (from 1 Aug 2014, 8 months) (1) Operating Income 53,175 33,425 Operating Profit / (Loss) 8,828 4,063 Profit / (Loss) after income tax 6,662 2,648 Total Distributable Income Available 6,041 5,673 Available Distribution Per Unit (Singapore cents) As at 31 Mar 2016 As at 31 Dec 2015 As at 31 Mar 2015 NAV per unit (SGD) Price/NAV per unit Loan-to-Value Ratio (2) 28.8% 28.9% 28.8% JPY/SGD Exchange Rate Unit Price (1) Comparative consolidated statement of profit or loss and other comprehensive income has been presented for the period from 1 August 2014 to 31 March 2015 as AGT was constituted on 16 June 2014 and listed on SGX-ST on 1 August (2) Loan-to-Value Ratio = Total loans and borrowings/total appraisal value of the Initial Portfolio as at 31 December No of Units for the periods = 1,099,122,000 19

20 FY 15/16 Profit /Loss JPY million FY15/16 % in sales Operating Income 53, % Golf course revenue 34, % Restaurant revenue 12, % Membership revenue 4, % Operating Expenses 44, % Merchandize & material 3, % Labour & outsourcing 16, % Golf course management fee 6, % Golf course maintenance & repair 2, % Depreciation & amortisation 3, % Utility expenses 2, % Operating lease expenses 2, % SG&A 4, % Other expenses 2, % EBITDA 12, % Operating Profit 8, % Interest & other finance costs 1, % Income tax % Profit after tax 6, % Distributable amount 6, % 20

21 1Q FY16/17 Key Financials JPY million 1Q FY16/17 1Q FY15/16 YoY Change (%) Operating Income 14,417 14, Operating Profit 2,975 3, Profit (after tax) 2,274 2, Total Income Available for Distribution 1,526 1, Available Distribution Per Unit (Singapore cents) As at 30 Jun 2016 As at 31 Mar 2016 NAV per unit (SGD) Price/NAV per unit Loan-to-Value Ratio (1) 28.9% 28.8% JPY/SGD Exchange Rate Unit Price (1) Loan-to-Value Ratio = Total loans and borrowings/total appraisal value of the Initial Portfolio as at 31 December No of Units for the periods = 1,099,122,000 21

22 1Q FY16/17 Statement of Comprehensive Income JPY million 1Q FY16/17 1Q FY15/16 YoY Change (%) Operating Income 14,417 14, Golf Course Revenue 9,740 9, Restaurant Revenue 3,417 3, Membership Revenue 1,164 1, Other Revenue Operating Expenses 11,442 11, Golf Course Related Cost 9,554 9, SG&A and Others 1,888 1, Operating Profit 2,975 3, Profit (after tax) 2,274 2,

23 1Q FY16/17 Balance Sheet Cash & Cash Equivalents Trade and Other Receivables As at 30 Jun 2016 As at 31 Mar ,420 11,238 2,074 2,391 Inventory Other Current Assets 1,554 1,218 Current Assets 13,338 15,092 Property, Plant and Equipment 148, ,670 Intangible Assets 17,134 17,136 Other Non-current Assets Non-current Assets 166, ,528 Total Assets 180, ,620 As at 30 Jun 2016 JPY million As at 31 Mar 2016 Trade & Other Payables 5,629 5,099 Membership Deposits 10,410 10,142 Borrowings from Financial Institutions Finance Lease Payables Income Tax Payables Other Current Liabilities 4,238 4,630 Current Liabilities 21,750 21,834 Borrowings from Financial Institutions and Related Party 43,163 43,000 Membership Deposits 3,057 3,570 Deferred Tax Liabilities 28,654 28,711 Finance Lease Payables 2,435 1,946 Other Non-current Liabilities Non-current Liabilities 77,758 77,669 Total Liabilities 99,508 99,503 Net Assets 80,590 82,117 23

24 1Q FY16/17 Distribution Statement 1Q FY16/17 1Q FY15/16 YoY Change (%) Profit (after tax) 2,274 2, (+) Depreciation & Amortisation Expenses (+) Interest and Other Finance Costs (+) Income Tax Expense EBITDA 3,772 4, Distribution Adjustments: (-) Change in Working Capital (1) (522) 10 - (-) Interest and Other Finance Cost Paid (5) (12) (-) Income Tax Paid (928) (813) 14.1 (+) Others (-) Net Cash Flows Used in Investing Activities (90) (268) (-)(+) Net Cash Flows from / (used in) Financing Activities Excluding Distributions 190 (160) - (-)(+) Effect of Exchange Rate Changes on Balance of Cash (23) 10 - Net Increase in Cash and Cash Equivalents excluding Distributions 2,416 2, Reserved Items (890) (2) (1,088) (3) - JPY million Income Available for Distribution to Unitholders 1,526 1, (1) Increase in working capital is mainly due to a decrease in deferred annual membership revenue of JPY973 million which is partly offset by an increase in trade and other payables. (2) Net amounts of Reserved items in the current quarter mainly comprise CAPEX of JPY594 million, borrowings repayment of JPY113 million, interest payment of JPY218 million, membership deposits repayment of JPY190 million, bonus payment of JPY584 million, partly offset by settlement of withholding tax of JPY575 million. (3) Net amounts of Reserved items for the first quarter of previous year mainly comprise CAPEX of JPY159 million, borrowings repayment of JPY113 million, interest payment of JPY222 million, membership deposits repayment of JPY234 million, bonus payment of JPY507 million, partly offset by settlement of withholding tax of JPY472 million. 24

25 1Q FY16/17 Distribution Statement Changes in Working Capital + JPY522 million (1Q) Increase in working capital is mainly due to; - a decrease in Deferred Annual Membership Revenue* of JPY973 million - and is partly offset by an increase in Trade and Other Payables * Deferred annual membership revenue arises from the difference between accounting recognition of the annual membership fees and actual cash received. JPY billion Annual membership Revenue Deferred annual membership revenue (Increase in Other current Liability) decrease in Deferred membership revenue( decrease in Other Current Liability) Q1 Q2 Q3 Q4 Accounting Revenue Cash Received Reserved items 1Q FY16/17 1Q FY15/16 Reserved items: (890) (1,088) CAPEX (594) (159) Borrowings Repayment (113) (113) Interest Payment (218) (222) Membership Deposits Repayment (190) (234) Bonus Payment (584) (507) Withholding Tax Others 25

26 Distribution History Period 1Q FY16/17 Payment of Distribution No distribution payable for the quarter 2H FY15/16 21 June H FY15/16 15 December 2015 Distribution Policy Distribution Timing Paid in SGD on semi-annual basis in June and December (1) Payout To distribute at least 90% of Distributable Income Available * Foreign Exchange Hedging on distribution: May utilised foreign exchange hedging strategies based on prevailing market conditions, where appropriate, to minimise any foreign exchange risk to Unitholders. (1) With the amount calculated as at 31 March and 30 September each year, for the six month period ending on each of the said dates. 26

27 Capital Management Debt Profile as at 30 June 2016 Term Loan A (Maturity in Aug 2017) JPY15 bil / T +1.25% (T: 6-month Yen TIBOR) Term Loan B (Maturity in Aug 2018) JPY15 bil / T +1.50% Term Loan C (Maturity in Aug 2019) JPY15 bil / T +1.75% Subordinated Loan (1) JPY500 mil / 3.0% Total borrowings : JPY 45.5 billion Interest Rate Swap Arrangement Term Loan A (Maturity in Aug 2017) JPY10 bil / 1.71% Term Loan B (Maturity in Aug 2018) JPY15 bil / 2.00% Term Loan C (Maturity in Aug 2019) JPY10 bil / 2.34% Term Loan Lenders: - Mizuho Bank - Sumitomo Mitsui Banking Corporation - The Bank of Tokyo-Mitsubishi UFJ - Aozora Bank - Shinsei Bank - The Tokyo Star Bank - Mitsubishi UFJ Trust and Banking Corporation - Mitsubishi UFJ Lease & Finance Company - ShinGinko Tokyo Subordinated Loan Lender: Accordia Golf Credit Rating BBB+ Obtained from Japan Credit Rating Agency on the JPY 45 billion loan of AGT s golf course holding company, Accordia Golf Asset Godo Kaisha ( SPC ) Loan-to-Value Ratio (2) 28.9 % Total Loans / Total Asset (2) = JPY 43.6 bil/ JPY bil (1) A subordinated loan has been extended from the Sponsor to the SPC and opened solely to deposit and manage the SPC s own funds in connection with the TK business. (2) Based on the latest appraisal value of the Initial Portfolio as at 31 December

28 Portfolio Updates Sainomori Country Club, Tokyo Region 28

29 Operating Performance of the Golf Courses Number of visitors to AGT s golf courses FY16/17 Number of Visitors (thousands) Utilisation Rate (1) Operating days Actual YoY Change Actual YoY Weekday / Change(ppt) (2) Weekend Closed days Weekday / Weekend Apr % 77.9% -0.3 ppt 19.8 / / 0.06 May % 87.2% -3.6 ppt 19.0 / / 0.0 Jun % 77.8% -4.2 ppt 21.8 / / 0.0 1Q 1, % 81.1% -2.7 ppt The number of visitors to AGT s golf courses in 1Q FY16/17 was 3.2% lower than the previous year. April: no change despite the earthquake in Kyushu. May: a 4% decrease due to some rains later in the month and lesser weekend/holiday. June: affected by the heavy rains in the west of Japan, including Kyushu. Operations in 1 golf course in Kumamoto ceased for a week due to the earthquake in Kyushu. There was no damage to the assets but revenues were slightly affected in the golf courses in Kyushu. Overall in Japan, demand for golf remains steady, especially those golf courses which are well-located. (1) Utilisation Rate = Total number of visitors per 18 holes / (Total operating days x 50 (flights) x 4 (persons)). Total operating days exclude closed days under specific circumstances such as typhoon and snow, among other factors. (2) Year-on-Year (YoY) Change Percentage Point (ppt) = Current month data - corresponding month of the previous year. (3) Number of days in average of the 89 golf courses: Definition of those date are based on Sponsor s. Those numbers are only for illustrative purpose. 29

30 Operating Performance of the Golf Courses Number of visitors - Number of visitors are affected by seasons, weather and market conditions. - Short-term fluctuation caused by weather tends to be mitigated in the longer period. Number of visitors (Monthly) Number of visitors and utilisation rate Thousands FY 16/17 FY 15/ Thousands 1,800 1,600 1, ,200 1, ,555 1, Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Q FY16/17 1Q FY15/

31 Operating Performance of the Golf Courses 1Q Revenue (1) in Areas (J-GAAP basis) JPY million Regions Number of Courses FY16/17 Revenue for 1Q FY15/16 YoY Change (%) Greater Tokyo 35 5,798 5, Greater Osaka 15 3,091 3, Greater Nagoya 12 1,809 1, Other Regions 27 2,674 2, Total 89 13,372 13, (1) Revenue is based on J-GAAP figures and includes play fees (green fees and cart fees), caddy fees, restaurant revenue and other revenue from the golf course. It does not include membership fees and Pro-shop business. 31

32 Operating Performance of the Golf Courses Operating Expenses 1Q FY16/17 1Q FY15/16 JPY million YoY change (%) Operating Expenses 11,442 11, Golf Course Operating Cost Merchandise and Material Expenses 978 1, Including an increase in provision of bonus. Labour and Outsourcing Expenses 4,354 4, Golf Course Management Fee 1,576 1, Golf Course Maintenance and Repair Cost Depreciation and Amortisation Utility Expenses Decline of crude oil price, resulting in lower cost of electricity. Operating Lease Expenses SG&A and others Selling, General and Administrative Expenses 1, Trustee-Manager s Fee Asset Manager s Fee Mainly due to foreign exchange loss on the revaluation of foreign denominated cash held by the trust and an increase in online booking fee. Others

33 Revenue Per Visitor Revenue (1) per Visitor of AGT s 89 golf courses (J-GAAP) JPY Year Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar FY14/15 8,684 8,861 8,471 8,176 7,944 8,196 8,713 9,573 8,981 7,819 7,431 8,137 FY15/16 8,663 8,925 8,309 8,147 7,894 8,282 8,839 9,427 8,797 7,872 7,237 8,076 FY16/17 8,633 8,797 8,338 (1) Revenue is based on J-GAAP figures and includes play fees (green fees and cart fees), caddy fees, restaurant revenue and other revenue from the golf course. It does not include membership fees and Pro-shop business. 33

34 Appendix Tarumae Country Club, Other Region (Hokkaido) 34

35 Revenue per Visitor (FY15/16) Revenue (1) per Visitor (J-GAAP-based Revenue) (JPY) 12,000 10,000 8,000 6,000 FY15/16 Play fees Caddy fee F&B Others 10, ,399 8,427 6, ,278 2, (JPY) 12,000 10,000 8,000 6,000 FY14/15 Play fees Caddy fee F&B Others 10, ,374 8,465 7, ,267 2, ,000 2, ,359 7,683 5,690 4,000 2, ,414 7,725 5,713 0 Weekday Weekend All day 0 Weekday Weekend All day Note: Revenue per visitor based on IFRS were lower than J-GAAP base especially for weekday because of free play coupon of the rewards programme. Play fee includes Green fee and cart fee (1) Revenue does not include revenue from memberships fees and Pro-shop business. 35

36 Key Statistics of Initial Portfolio Golf Courses (FY15/16) Regions Number of Courses % Appraisal Value as at 31 Dec 2015 (JPY billion) (1) % Revenue for FY15/16 (JPY billion) (2) Utilisation Rates FY15/16 (%) (3) NOI FY15/16 (JPY billion) (4) NOI Margin FY15/16* (%) NOI Yield FY15/16** (%) Greater Tokyo Greater Osaka Greater Nagoya 3 Largest Metropolitan Areas Other Regions Total NOI = Net Operating Income *NOI Margin = NOI divided by Revenue **NOI Yield = NOI divided by Appraisal Value (1) Based on real estate appraisals as at 31 December 2015 conducted by the Independent Real Estate Appraisers. (2) Gross revenue includes play fees (green fees and cart fees), caddy fees, restaurant revenue, membership fees and other revenue from the golf course. (3) Utilisation rate = Total no. of visitors per 18 holes/total operating days x 200 persons. (4) NOI calculated by deducting merchandise and material expense, labour cost, other operating expenses from revenue and Golf Course Management Agreement Fees ( GCMA ). Note: Calculation is based on J-GAAP figures 36

37 Seasonality in Operation, Accounting Profit and Cash Flows Golf Seasonality (Image) Operating Revenue Operating Profit Golf course business naturally has seasonality High Season 1Q Spring Middle Season 2Q Summer High Season 3Q Autumn Low Season 4Q Winter Demand fluctuates according not only to Japanese seasons but also weather conditions, e.g. Rainy season (June to July) : low demand & high cancellation. Typhoon (September to October) : high cancellation. Snow fall (January to March) : low demand. 1 st Half 2 nd Half Operating Profit Calculated based on accounting profit 1st Half 2nd Half 1st Half Distribution Calculated based on cash flow 2nd Half Distribution Cash available for distribution could differ from operating profit as the distributable amount is calculated based not only on the operating profit but also actual cash flow. The major cause for such deviation is the membership fees that are recognized monthly but actually received and become distributable mostly in the fourth quarter. 37

38 Green Fee Profile (Member vs Visitor) Green fee (Member vs Visitor) in FY15/16 (JPY) 7,000 Green fee (Member vs Visitor) FY15/16 6,307 6,000 5,000 4,000 3,637 3,000 2,000 1,646 2,190 2,686 2,287 1,000 0 Weekday Weekend All day Member Visitor Above fee does not include cart fees, caddy fees, F&B and others and is based on the average of 89 golf courses. Based on J-GAAP figures. 38

39 Top 20 Golf operators/owners in Japan No. Company Name No. of Golf Courses (1) Market Share (2) 1 Accordia Golf (3) % 2 PGM Group % 3 Orix Group % 4 Seibu Group % 5 Tokyu Group % 6 Ichikawa Golf Kogyo Group % 7 Cherry Golf Group % 8 OGI Group % 9 Unimat Group % 10 Taiheyo Club % 11 Chateraise % 12 GCE Group % 13 RESOL Group % 14 Resort Trust % 15 Tokyo Tatemono (J Golf) % 16 JGM Golf Group % 17 Kamori Kanko % 18 Akechi Club & Boso Country Club Group % 19 Daiwa House % 20 Hotel Monterey % (1) Source: Golf-jo Kigyo Group & Keiretsu 2016 (2) Based on the total number of golf courses in Japan in 2014 (2,336) from Nihhon Golf-jo Keieisha Kyokai (3) Combined AGT and Accordia Golf 39

40 Thank You Investor Contact: Takuya Nagano (Head of IR) Brenda Ng (Senior Manager, IR) For more information, please visit 40