The Straits Trading Company Limited CORPORATE PROFILEstraitstrading.listedcompany.com/...ForuploadFINAL.pdf · and fluctuations in tin prices, (iii) the Company not being successful

REAL ESTATE • HOSPITALITY • RESOURCES © Copyright 2015, The Straits Trading Company Limited. All rights reserved.

The Straits Trading Company LimitedCORPORATE PROFILE

August 2015


Disclaimer

2

The information contained in this presentation (the "Presentation") is for information purposes only. The Presentation does not constitute or form part of any offer or invitation to sell or thesolicitation of an offer or invitation to purchase or subscribe for, or any offer to underwrite or otherwise acquire any securities of The Straits Trading Company Limited (the “Company”) or anyother securities, nor shall any part of the Presentation or the fact of its presentation or communication form the basis of, or be relied on in connection with, any contract, commitment orinvestment decision in relation thereto.

The information in this Presentation is based on the views of and certain assumptions held by the management of the Company. While the Company has made reasonable efforts to ensure theaccuracy of the information, the Company has not independently verified such information. In addition, the Company does not make any representation or warranty as to the accuracy orcompleteness of the information contained in this Presentation or the reasonableness of any assumptions contained herein and any liability in respect therefore is expressly disclaimed.

The information in this Presentation has been provided by the Company and speak as of 31 July 2015, and are subject to change without notice or update. The Company does not make anyrepresentation or warranty that there have been changes in the affairs of the Company after such date.

This Presentation may contain forward‐looking statements. All statements that address expectations or projections about the future, including, but not limited to, statements about the strategyfor growth, expected performance, trends, anticipated developments in the Company’s industries, market position, expenditures, and financial results, are forward‐looking statements. Forward‐looking statements are based on certain assumptions and expectations of future events. The Company does not guarantee that these assumptions and expectations are accurate or will berealized. 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 andassumptions. Although the Company believes that such forward‐looking statements are based on reasonable assumptions, it can give no assurance that such expectations will be met. Thesefactors include, but are not limited to, (i) general global, regional and local political, social and economic conditions (including, but not limited to, factors such as the political landscape,environmental conditions and viral epidemics such as human avian flu and severe acute respiratory syndrome) that may result in reduced occupancy rates and room rates for the hospitalityinvestments of the Company or affect the other investments of the Company, (ii) the cyclical nature of the property market and tourism industry in the countries in which the Company operatesand fluctuations in tin prices, (iii) the Company not being successful in the implementation of its business strategies or in managing its growth, (iv) regulatory developments and changes in theindustries in which the Company operates, the general economic condition of, and changes in, the economy in Asia‐Pacific and Europe, (v) competition in the hospitality industry and thehospitality‐related industry in the Asia‐Pacific and Europe region, (vi) hostilities (including future terrorist attacks) or fear of hostilities that affect travel in general, within or to the Asia‐Pacificregion or any other countries in which the hospitality investments of the Company are located or have operations, (viii) changes in the supply and demand for tin metal, (vii) changes in the priceof tin as a result of speculation, (viii) changes in interest rates or inflation rates, (ix) wars or acts of international or domestic terrorism, (x) occurrences of catastrophic events, natural disasters andacts of God that affect the business or properties of the Company, and (xi) other factors beyond the control of the Company. You are cautioned not to place undue reliance on these forward‐looking statements, which are based on current view of the Company's management on future events.

This Presentation includes statistical data provided by us and various third parties and cites third party projections regarding growth and performances of the industry and markets in which weoperate. Such data is taken or derived from information published by industry sources, various third parties and from our internal data. In each such case, the sources are identified in thisPresentation.

This Presentation is directed only at persons which are not “U.S. persons” as defined under Regulation S of the U.S. Securities Act of 1933 and, in addition, which are lawfully able to receive thisdocument under the laws of the jurisdictions in which they are located or other applicable laws.


STC Group – A Diversified Investment Company

Real Estate Real Estate Investment Trust Hospitality

STC will leverage on these platforms and make appropriate future investments to develop engines of growth

89.5% 20.1% *9.1% 30.0%

Since Tecity Group’s takeover of The Straits Trading Company Limited (“STC”) in 2008, STC has been transformed into a major player in real estate, hospitality and resources, with investments that span the Asia‐Pacific region.

3

One of the largest real estate fund managers in the region

One of the largest REITs in Singapore with ownership interests in prime commercial and retail properties

Resources

89.5% owned co‐investment vehicle with 10.5% owned by John Lim family office (up to S$950m total commitment)

One of the largest hospitality operators in the region with over 13,000 rooms under management across 80 properties and 9 unique & complementary brands

STC’s real estate ecosystem

One of the largest suppliers of refined tin metal in the world

54.8%

* Aggregate interest, including 1.26% held by Tecity Group

New investments that complement these platforms

market capitalisation: S$1.1 bn as at 13 August 2015

Asset / Fund Management

REAL ESTATE • HOSPITALITY • RESOURCES © Copyright 2015, The Straits Trading Company Limited. All rights reserved.REAL ESTATE • HOSPITALITY • RESOURCES © Copyright 2015, The Straits Trading Company Limited. All rights reserved.

Board of Directors are Industry Veterans

Chew Gek Khim (Executive Chairman)

Chew Gek Hiang (NI & NE Director) David Goh (NI & NE Director)• Executive Director and Head of Finance at Tecity Group

• Serves on advisory panel of GST Review Board

• Accountant by training; member of Institute of Chartered Accountants in England and Wales since 1990

• CIO and Chief Strategist at Tecity Group

• Former adjunct associate professor of Finance at Nanyang Technological University and investment analyst with Great Eastern Life

• Holds M.Sc. from MIT and is a CFA Charter holder

Yap Chee Keong (NI & NE Director)• Over 25 years of experience in general management, M&A and finance

• Former advisor and CFO at SingPower Group

• Fellow of ISCA and CPA Australia & Singapore Institute of Directors

Dr Gary Weiss (ID)

Razman Ariffin (ID)

• Executive Director of Ariadne Australia Ltd• Former Executive Director of Guinness Peat Group plc and served on the Boards of several ASX‐listed companies, including Westfield Holdings Limited

• Extensive experience in international business and cross‐border M&A

• Over 40 years of experience in the mining sector

• Former CEO of Malaysia Smelting Corporation (MSC)

• MSC Chairman

Elizabeth Sam (NI & NE Director)

Tham Kui Seng (ID)

• Over 40 years of experience in the financial sector

• Former central banker (Ministry of Finance, MAS), Chairman of Singapore International Monetary Exchange and Investment Management Association of Singapore

• Highly experienced in the real estate sector• NE Director of Global Logistics Properties Ltd, Sembcorp Industries Ltd and Banyan Tree Holdings Ltd

• Board member of Housing & Development Board (HDB) & Singapore Land Authority (SLA)

• Former Chief Corporate Officer of CapitaLand and Director of Raffles Medical Group Ltd

Timothy Chia (Lead ID)

Tan Tiong Cheng (ID)• 40 years of experience in the real estate sector• Executive Chairman of Knight Frank Pte Ltd• Independent Director of Heeton Holdings Ltd and UOL Limited• Fellow Member of the Singapore Institute of Valuers and Surveyors and a member of the Valuation Review Board

• Ms. Chew was earmarked and groomed by her grandfather, the late Tan Sri (Dr) Tan Chin Tuan to head the Tecity Group

• Deputy Chairman of ARA Asset Management Ltd, Chairman of ARA Trust Management (Suntec) Ltd, Board Member of SGX and serves on the board of Securities Industry Council of Singapore

• Chairman of Hup Soon Global Corporation Limited and GracefieldHoldings Limited.

• Senior Adviser to EQT Funds Management Ltd• Chairman, Asia of Coutts & Co Ltd• ID of Banyan Tree Holdings Ltd and F&N Ltd

4Note: NI stands for non‐independent; NE stands for Non‐Executive; ID stands for independent director


Recent History Demonstrates STC’s Ability to Create and Unlock Value

2 0 1 0 2 0 1 5

Acquisition of 20.1% stake in ARA

Formation of Straits Real Estate Pte. Ltd. (SRE)

Monetised Straits Trading Building for S$450m; crystallised cumulative

gain of S$373m

Joint venture with a member of Far East

Organization

• 30% stake in sizable hospitality operator

• Operational turnaround

• World’s 2nd largest supplier of refined tin

• Well positioned to benefit from potential tin price recovery

2 0 1 4

• Divestment of non‐tin assets and refocused on core tin business

• Improved profile & liquidity with SGX secondary listing

REAL ESTATEHigh‐quality but low‐yielding real estate portfolio

HOSPITALITYSmall‐scale niche

operator

RESOURCESVariety of resources

investments

Transformed into a dynamic growth

platform

5

Continuous divestment of low‐yielding residential

properties

2 0 1 32 0 1 22 0 1 1

• STC emerged as the largest shareholder in WBL with a c.41% stake after a share swap with two institutional investors

• Triggered an MGO and finally accepted a competing general offer

S$508m of shareholder value unlocked and reinvested into

new businesses

INVESTMENTSPassive 17% stake

in WBL


6

Strong Foundations Laid for STC Group

STC’s foundation of growth rests upon:

Strong business network to originate deals for our portfolio companies

Strong and patient capital with a highly disciplined investment framework

Highly experienced management team with strong execution track record

Commitment to high standards ofcorporate governance and strongbusiness ethics

Business Network & Connectivity

Management Expertise

Corporate Finance and M&A Capabilities

Good Governance & Business Ethics

ResourcesHospitality

STC Group

• 30% JV with Far East Orchard

• Investment in Far East Hospitality

Trust

Asset / Fund Management

Real Estate


STC’s Major Shareholder

Major Shareholder

The Cairns Pte Ltd (Tecity Group) 70.0%1

7

The Tecity Group was founded by the late banker and philanthropist Tan Sri (Dr) Tan Chin Tuan

The Tecity Group comprises a 70% stake in The Straits Trading Company Limited; a privately held investment arm, Tecity Management; and a philanthropic arm, The Tan Chin Tuan Foundation

The Tecity Group manages an active global investment portfolio with a philosophy centered on the principles of its founder. It prides itself in being a responsible partner and desirable employer

The Tecity Group is headed by Ms Chew Gek Khim, granddaughter of the founder

Note:1. Based on disclosures in STC’s FY2014 Annual Report

Overview of The Tecity Group


8

SUNTEC REIT ARA STRAITS REAL ESTATE

Private fund management

REIT management

Real estate management services

Maximise yield

Look to attractively divest remaining assets

Redeploy capital into SRE

*9.1%

Private Real Estate Fund

Other Real Estate Opportunities

20.1% 89.5% 100%

Ownership of income‐producing real estate assets

Prime commercial and retail portfolio in Singapore central business district

EXISTING PROPERTY PORTFOLIO

Total capital commitment of $950 million

Assets managed externally by ARA Property Management (where applicable)

Managed by ARA

CAPITAL DEPLOYED

STC’s Real Estate Ecosystem

*Aggregate interest, including 1.26% held by Tecity Group


A platform to pursue growth opportunities for the hospitality management and ownership businesses

Hotel management contracts provide recurring fee income Ownership of hotel assets provides capital appreciation

Exposure to Wide Spectrum of Assets Across the Real Estate Space

An investment vehicle that seeks out higher returning real estate investment opportunities globally

Can invest directly in physical assets, in structured real estate backed securities,seed real estate funds, or fund real estate operating platforms

Recurring income from REIT securities and trading through SRE Capital

A leading integrated real estate fund manager with revenues from managing REITs, private real estate funds, providing real estate management services and corporate finance advisory services

Rental income provides recurring income Platform for value‐accretive acquisitive growth

9


STC’s Partners Are Leading Players

10

Straits Real Estate ARA Asset Management Far East Hospitality Holdings

STC: 89.5% stake (up to S$850m commitment)

Mr John Lim: 10.5% stake (up to S$100m commitment)

Profile of John Lim:•Mr Lim has been the Group Chief Executive Officer and Executive Director of ARA since its establishment in 2002

•Under Mr Lim’s leadership, ARA’s assets under management (“AUM”) has grown to S$26.9 billion (as of 1H2015)

STC: 20.1% stake

Mr John Lim: 19.25% stake

Cheung Kong: 7.83% stake

Profile of Cheung Kong Group:•Cheung Kong Group is a property development and strategic investment company

• It is one of the largest developers in Hong Kong of residential, commercial and industrial properties

•About one in seven private residences in Hong Kong were developed by the company

STC: 30% stake

Far East Orchard: 70% stake

Profile of Far East Orchard:• Far East Orchard is a member of Far East Organization, Singapore’s largest private property developer

• Far East Orchard has a diversified portfolio focusing on property development, hospitality real estate development and management and the healthcare real estate space


SRE’s Investment Footprint Across Key Asian Markets

Japan:Greater Tokyo Office FundTakanaka Muse Building

Malaysia:ARA Harmony Fund III1MK Kuala Lumpur

China:Chongqing Roosevelt Plaza

Australia:114 William Street, Melbourne

11


SRE Investment – Maiden Investment in Chongqing

12

ChongqingRoosevelt Plaza

Retail development in Chongqing, China

Property is a 82,000 sqm development that is directly linked to the subway station Part of a large mixed‐use development with residential buildings, offices and a

hotel

Artist impression – Garden Concept in AtriumArtist impression – External facade


ARA – Award Winning Premier Real Estate Fund Manager

13

20.1% owned associate of STC, ARA is one of the largest real estate fund managers in the region, with S$26.9 billion of AUM (as of 1H2015) ARA manages REITs and private funds in key markets of Asia with a diversified portfolio spanning the office,

retail and industrial sectors; and provides real estate management services

Beijing Oriental Plaza, Beijing ChinaManaged by Hui Xian REIT Manager

Suntec City, Singapore Managed by Suntec REIT Manager


FEHH – STC’s JV Hospitality Operating Arm

14

FEHH, STC’s hospitality joint venture with Far East Orchard, manages a combined hospitality portfolio of over 80 hotels and serviced apartments with more than 13,000 rooms under management across 25 locations FEHH owns a stable of nine unique and complementary hospitality brands

Rendezvous Hotel Singapore Adina Apartment Hotel Berlin, Germany


15

Leading supplier of tin metal globally

One of the world’s leading suppliers of refined tin metal Listed on the Main Market of Bursa Malaysia since 1994, with a

secondary listing on SGX‐ST Custom tin smelting facility in Butterworth Penang, Malaysia and open

pit tin mine in Perak, Malaysia Producer of premium high‐purity refined tin (“MSC Straits”)

Malaysia Smelting Corporation ‐ A Leading Supplier of Refined Tin Metal


Develop engines of growth by leveraging on STC’s real estate ecosystem and resources platforms

Nurture the real estate and resources platforms to grow the businesses and the recurring revenue streams

Optimise capital productivity through deploying capital from the divestment of low‐yielding assets to higher returning real estate opportunities

Continuously develop and enhance the synergies within the STC real estate ecosystem

Identify investments that are able to leverage on the platforms to generate complementary revenue streams and profit for STC

2

1

3

4

5

16

The STC Strategy


Documents

The Straits Trading Company Limited CORPORATE PROFILEstraitstrading.listedcompany.com/...ForuploadFINAL.pdf · and fluctuations in tin prices, (iii) the Company not being successful