Accordia Golf Trustaccordiagolftrust-jp.listedcompany.com/misc/...SAC-SGX Small/Mid Cap Corporate Access Seminar March 2019 SGX ticker: ADQU Bloomberg: AGT SP. Important Notice 2 This

Accordia Golf TrustSAC-SGX Small/Mid Cap Corporate Access Seminar

March 2019

SGX ticker: ADQU

Bloomberg: AGT SP

Important Notice

2

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.

Contents

01 Golf Industry in Japan

02 About Accordia Golf Trust

03 Q3 FY18/19 Financial Highlights

04 Portfolio Updates

05 Outlook

3

4

Central New Golf Club, Tokyo Region (Ibaraki)Huis Ten Bosh GC Nagasaki (Other Region)

Daiatsugi Country Club Hon Course, Tokyo Region

Golf Industry in Japan

01

Overview

5

• Japan was ranked third in the golf market worldwide

• Highest number of active golf players per golf course compared with other countries

Country No. of golf courses

USA 15,047

Canada 2,295

Japan 2,290

England 1,991

Australia 1,591

Germany 747

France 637

Scotland 540

Sweden 485

South Africa 484

Other countries 2,838

Total 28,945

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

Japan Canada USA Australia England

Number

Number of active golf players per golf course

Source: Various company reportsSource: R&A – Golf Around the World 2017

Steady demand from senior players

6

Source: Nihon Golf-jo Keieisha Kyokai (Japan)

9.0 10.0 10.5 11.3 12.8 13.9 14.8 15.6 15.7 16.8

90.7 91.6 88.1 84.386.7 86.7 86.5 87.7 86.7 86.6

0.0

20.0

40.0

60.0

80.0

100.0

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Number (million)

No. of plays (age >70) No. of plays

• The number of plays per senior player has increased, thanks to Japan’s increasing

healthy life expectancy

7

Source: Statistics Bureau (Japan)

Note: Population Census (2015) is the latest publication by Statistics Bureau (Japan) and the country’s total population was 127.1 million. According to the bureau,

Japan had a total population of 126.5 million as at the end of April 2018.

Urbanisation development

• Population shift from rural to urban prefecture

-6.0

-5.0

-4.0

-3.0

-2.0

-1.0

0.0

1.0

2.0

3.0

4.0

5.0

Okin

aw

a

To

kyo

Aic

hi

Sa

ita

ma

Ka

na

ga

wa

Fu

ku

oka

Sh

iga

Chib

a

Osa

ka

Hir

osh

ima

Miy

ag

i

Hyog

o

Kyoto

Oka

ya

ma

Ish

ika

wa

To

ch

igi

Ku

ma

mo

to

Sh

izu

oka

Gu

mm

a

Ibara

ki

Ka

ga

wa

Sa

ga

Mie

Hokka

ido

Gifu

Fu

ku

i

To

ya

ma

Nag

an

o

Oita

To

tto

ri

Nara

Miy

aza

ki

Niig

ata

Eh

ime

Ya

ma

guch

i

Sh

ima

ne

Ya

ma

nash

i

Ka

go

shim

a

Nag

asa

ki

To

ku

sh

ima

Iwa

te

Wa

ka

ya

ma

Ya

ma

gata

Ao

mo

ri

Ko

ch

i

Fu

ku

sh

ima

Akita

Percent

2005-2010 2010-2015

8Northern Country Club Nishikigahara, Tokyo Region

About Accordia Golf Trust

02

Trust structure

9

• Singapore’s first listed Business Trust with golf course assets

• Listed on Singapore Exchange on 1 August 2014

1 The relationship between the golf course holding company (“Golf Course Holding Company or SPC”) and AGT is governed by a Tokumei Kumiai (”TK”) agreement, being a silent partnership agreement. TK is a contractual

relationship between an investor and a business operator, whereby the investor makes certain business contributions to the business operator (whether in the form of cash, shares or other things of value) in return for the right to

receive distributions of profits generated from the business managed by the operator. The assets contributed by the investor to the business operator shall be legally owned by the business operator (“TK Investment”). For further

information on TK structure, please see the prospectus of AGT dated 21 July 2014. 2 AGT invests in the Initial Portfolio via the Golf Course Holding Company established to hold the Initial Portfolio under a TK investment structure

Unitholders

(Institutional and Public)

Golf Course Holding Company2

Accordia Golf Asset Godo Kaisha

89 Golf Courses

Trustee-Manager

Accordia Golf Trust

Management Pte. Ltd.

Accordia Golf Co., Ltd

Golf Course Manager

Sponsor

49%

Daiwa Real Estate Asset

Management Co. Ltd.

Asset Manager

Trustee-Manager Partner

51%

28.85%

Provides asset

management services

Provides golf course

management services

TK Investment1

Provides Trust

management services

Unique portfolio of assets: 89 golf courses in Japan

• Approximately 70% are located in 3 key metropolitan areas

• Total appraisal value of JPY149.2 billion

Greater Tokyo region

No. of golf courses 35

Appraisal value (JPY bil) 72.7

Greater Nagoya region



Greater Osaka region



Other regions



10Information as at 31 December 2017

Ownership of land

11

76%

24%

Freehold Leased

Freehold vs

leased land by

area

22

10

16

13

10

4

0-5 6-10 11-20 21-50 51-100 over 100

Golf courses

owned by

multiple land

owners

• 76% of the golf courses (by area) are owned by AGT

• Typical lease term is between 10 and 20 years

• Nishikigahara GC is the only golf course that operates with a lease permit from the government

Ownership of land Number of land owners

Top golf operator in Japan

1 According to Golf Market Activity Committee, there were 2,238 golf courses in Japan as at the end of March 2018. 2 Accordia Golf and AGT combined.3 MBK, the owner of Accordia Group, has acquired the golf business of ORIX Group in March 2019.

No. Company Name No. of Golf Courses Market Share1 (%)

1 PGM Group 137 6.12

2 Accordia Group2 134 5.99

3 ORIX Golf Management Corporation3 39 1.74

4 Seibu Group 29 1.30

5 Ichikawa Golf Kogyo Group 28 1.25

6 Tokyu Group 26 1.16

7 Cherry Golf Group 20 0.89

8 Unimat Group 18 0.80

9 Taiheiyo Club 17 0.76

10 Chateraise 16 0.71

11 GCE Group 14 0.63

12 RESOL Group 13 0.58

13 Resort Trust 13 0.58

14 Tokyo Tatemono (J Golf) 12 0.54

15 JGM Group 11 0.49

527 23.5

12

Source: Golf Management July 2018 / Golf Market Activity Committee

Strong "Accordia" brand

13

Large player base (loyalty card holder)

Reasonable play fee

Possess well located golf courses

High ability in golf course management1

2

3

4

Mid-range golf courses with high number of visitors

Play fee

Number of visitors

Luxury exclusive golf courses

Mid-range golf courses

Affordable / public golf courses

High market penetration

14

• 3.35 million loyalty card holders as at 31 March 2018.

• Accounts for approximately 60% of the total number of

golf players in Japan.

Loyalty card holders of Accordia Golf

1.922.33

2.803.29

3.654.00

2.870.24

0.32

0.34

0.31

0.32

0.31

0.33

0.20

0.19

0.18

0.18

0.17

0.16

0.15

Mar 2012 Mar 2013 Mar 2014 Mar 2015 Mar 2016 Mar 2017 Mar 2018

Visitor Silver Member

2.36

2.84

3.32

3.784.14

4.48

3.35^

Note: Figures are in million.

^ Membership clean-up exercise: loyalty card will not be valid if the member did

not visit Accordia Group golf course for more than two years.

Source: Accordia Golf / Golf Management Activity Committee

Black<23 times

Gold24 times

Silver6 times

White

Diamond>24 times

Membership

status by annual

visit

Member Non-member

51.28 51.44 53.01 52.20

53.70 54.84 54.32 54.24

36.21 34.95 36.07 36.36 37.03 37.87 37.62 37.89

0.0

10.0

20.0

30.0

40.0

50.0

60.0

FY10/11 FY11/12 FY12/13 FY13/14 FY14/15 FY15/16 FY16/17 FY17/18

Number (‘000)

Note: Average number of players is calculated by dividing total number of players by 18 holes converted number of golf courses.

Number of players higher than national average

Approximately 43% higher

than national average

15

AGT’s Average

National average

Number of players per golf course per year

• High number of players is expected to generate stable operating cash flows

Source: Nihon Golf-jo Keieisha Kyokai

Historical performance

12.58 12.70 12.9311.78 12.03 12.76

11.91 11.35

5.42 5.455.61 5.53

5.69 5.81 5.75 5.69

0

1

2

3

4

5

6

0

2

4

6

8

10

12

14

16

FY10/11 FY11/12 FY12/13 FY13/14 FY14/15 FY15/16 FY16/17 FY17/18

Number (million)JPY billion

EBITDA Number of players

Earthquake

in March

Heavy

snowfall

Warm

weather

Typhoons

and winter

# EBITDA is calculated based on J-GAAP revenue and for illustration purpose only. The figures are unaudited.

16

• Despite unfavourable weather conditions, EBITDA# stays healthy and the number

of players in Japan remains stable

Yield comparison

17

• Policy: At least 90% of AGT’s distributable income

• Distribution: SGD on a semi-annual basis+

• Hedging: Short-term to minimise foreign exchange risk

Source: OCBC Investment Research Weekly S-REITS Tracker / The Association for Real Estate Securitization

Yield (%)

6.0 6.26.5

4.2

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

AGT BT S-REITs J-REITs

AGT DPU yield for FY17/18(based on closing unit price of SGD0.645 as at the end of March 2018)

+ For the six-month period ending as at 31 March and 30 September of each year.

Earnings and costs structure

Golf course

revenue1

67%

Restaurantrevenue2

25%

Membershiprevenue3

8%

Labour & Outsourcing Expenses

40%

Merchandise & Material Expenses

9%Golf Course

Management Fee14%

Golf Course Maintenance & Repair Cost

6%

Depreciation & Amortisation

8%

Utility Expenses5%

Operating Lease Expenses

5%

SG&A and others13%

1 Golf course revenue: play fees, caddie fees, accommodation fees, driving range fees, etc. 2 Restaurant revenue: sales at golf course restaurant and golf course shops, hotel sales of food and drinks, etc.3 Membership revenue: annual membership fee, new membership fee, name transfer fee, etc.

18

Operating income

(FY17/18)

Operating expenses

(FY17/18)

Acquisition opportunities: Pipeline from the Sponsor

Right of first refusal

AGT has a right of first refusal for all golf courses 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

14 golf courses

(Call option)

15 golf courses

“Accordia” brand golf courses

Information as at 1 March 2019

Golf courses

Accordia brand

Non-Accordia brand

19

“Non-Accordia” brand

15 golf courses

25 driving ranges

20


Q3 FY18/19 Financial Highlights

03

Otsu Country Club, Osaka Region

Financial highlights

3Q

FY18/19

3Q

FY17/18

YoY chge

(%)

9 months

FY18/19

9 months

FY17/18

YoY chge

(%)

Operating income 14,626 13,942 +4.9 41,077 41,895 (2.0)

Operating profit 3,547 3,345 +6.0 7,834 8,999 (12.9)

Profit (after tax) 3,233 2,594 +24.6 5,987 7,022 (14.7)

Total distributable income*

(100% basis)1,720 1,576 +9.1 3,194 3,048 +4.8

JPY million

21

• Operating income has picked up in 3Q thanks to more favourable weather.

• The number of players has increased by 5.6% (+80,240) YoY, and utilisation rate

at the golf courses held steady at around 80% during the 3-month period.

* Distributions to unitholders will be made on a semi-annual basis for the period ending 31 March and 30 September of each year.

Balance sheet summary

As at 31 Dec 2018

As at 31 Mar 2018

Cash (JPY million) 7,086 8,145

Total assets (JPY million) 174,440 175,952

Total liabilities (JPY million) 91,717 95,797

Total borrowings (JPY million) 42,974 43,455

NAV per unit (SGD) 0.93 0.90

22

Debt profile

Loan amount Interest rate Maturity period Lender

Tranche A JPY43.425 bilT+1.95% (T: 6-month Yen TIBOR) 5-year (mature in Aug 2023)

Aozora Bank +

ORIX Co.Ltd

Tranche B1 JPY1.5 bil T+1.50%

3-to 5-year committed loan

facility for capex (expire in

Aug 2023)

Aozora Bank

Subordinated

Loan2 JPY0.5 bil 3.0% Not applicableAccordia Golf

Co.,Ltd

Total loan facility: JPY45.425 bil

Loan-to-value ratio: 29.4%3

1 Loan facility yet to be drawn.2 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.3 Based on the latest appraisal value as at 31 December 2017, and calculation = Actual loan (JPY43.925 billion) / Total appraisal value (JPY149.24 billion)

23

24


Portfolio Update

04

Daiatsugi Country Club Sakura Course, Tokyo Region

Revenue per player trending up

Note: Play fee includes green fee and cart fee

^ Revenue excludes membership fees and pro-shop business.

Revenue^ per player

(J-GAAP basis)

25

4,364

7,986

5,771

59

80

67 2,166

2,371

2,246 351

369

358

0

2,000

4,000

6,000

8,000

10,000

12,000

Weekday Weekend All day

JPY

3Q FY17/18(cumulative)

Play fee Caddy fee F&B Others

10,805

6,941

8,442

4,305

8,115

5,785

48

67

56 2,207

2,440

2,297 360

381

368

0

2,000

4,000

6,000

8,000

10,000

12,000

Weekday Weekend All day

JPY

3Q FY18/19 (cumulative)

Play fee Caddy fee F&B Others

11,003

6,921

8,507

• Revenue per player has registered modest sequential increase since 3Q FY17/18.

26

0

2,000

4,000

6,000

8,000

10,000

Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar

FY16/17 FY17/18 FY18/19

JPY

Revenue per player – Monthly trend

Revenue^ per player

(J-GAAP basis)

Year Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar

FY16/17 8,633 8,797 8,338 8,058 7,540 8,191 8,955 9,267 8,745 7,605 7,133 8,066

FY17/18 8,460 8,590 8,210 8,029 7,476 8,127 8,862 9,390 8,928 7,936 7,371 8,347

FY18/19 8,494 8,730 8,448 7,956 7,484 8,264 8,791 9,287 9,006

Figures in JPY

^ Revenue excludes membership fees and pro-shop business.

• Encouraging improvement since late FY17/18.

Stable demand for golf

27

Note: Figures are based on real-time reservation on the first day of every month for the 89 golf courses and compared against FY14/15.

6.8

4.8

2.4

8.6

1.8

4.0

2.4

-0.4

4.1

14.0

7.36.4

11.7

7.4

5.7

12.0

1.0

6.15.5

0.2

4.1

12.8

0.0

3.4

11.0

3.4

4.8

6.9

-5.3

4.2

-0.7

-4.1

5.5

-10

-5

0

5

10

15


Percent

FY16/17 FY17/18 FY18/19

Number of players under reservation

• Despite lacklustre reservation in October and November FY18/19, the number

of players was approximately 2% (+18,000) higher against FY14/15.

28

Number of players – Monthly trend

491

572

492

541

497 477

541

498 473

371

334

466

517

587

514 540 512

508

462

512

458

332 307

446 524

556

495

464 484

465

534

512

465

0

100

200

300

400

500

600


FY16/17 FY17/18 FY18/19

Number of players

Number (’000)

• The number of players has increased 5.6% YoY in 3Q amid better-than-expected

weather conditions.

29

Installation of eMenu system to

enhance dining experience and

improve productivity.

The annual Pink Ribbon Ladies’ Golf

event had attracted approximately

140 female golfers.

The biannual kids party held at the golf

club to spark their interest in golf game.

Ongoing marketing efforts

• Promote golf as an enjoyable and healthy sports for ladies and juniors

• Adopt automation to boost productivity

Refreshed interior

30

• The newly refurbished clubhouse at Kanetsu Highland Golf Club (Tokyo region)

offers contemporary and cosy space for golfers.

Reception area

Cafeteria

Before

Before

After

After

31


Outlook

05

Izumisano Country Club, Osaka Region

Japanese economy

32

• International

Monetary Fund

expects economic

growth to remain

healthy in the

fiscal year 2018

• Current

unemployment

rate stood at 2.4%

• Approximately

345,000 foreign

blue-collar

workers are

expected to join

the workforce in

the next 5 years

• US trade

protectionism

could potentially

slowdown Japan’s

export

Geopolitical

uncertainties

Gross domestic

product forecast

to grow 1.1%

Geopolitical

uncertainties

Change in

immigration policy

to welcome

foreign workers

Japanese golf industry

33

• Consolidation of

golf courses is

likely to continue

amid market

saturation

• Demand for golf is

well-supported by

senior players

• Automation to

combat the

impending labour

shortage

• Tapping the new

immigration policy,

companies could

potentially gain

access to a pool of

prospective skilled

talents

• Aging population –

a global issue

• Engaging the

pivotal group –

ladies and juniors

• Rising labour

costs – a pressure

on profit margin

Geopolitical

uncertaintiesSupply and

demandChallengesTight labour

market

Thank You

Investor Contact:

Ling Bee Lin

+65 6592 1059

[email protected]

For more information, please visit www.agtrust.com.sg

Documents

Accordia Golf Trustaccordiagolftrust-jp.listedcompany.com/misc/...SAC-SGX Small/Mid Cap Corporate Access Seminar March 2019 SGX ticker: ADQU Bloomberg: AGT SP. Important Notice 2 This