Investor Presentation 4 September 2012...Investor Presentation 4 September 2012 Aspial Corporation Limited 1. ... Ltd Group Pte Ltd Jewellery Pte Ltd. ... S$159 .0 million in FY 2011

Investor Presentation 4 September 2012

Aspial Corporation Limited

1

4 September 2012

ASPIALInvestor Presentation

OverviewAspial Corporation Ltd

Financials FY2009 – 1H2012

2

StrengthsGroup Highlights

OutlookStrategies Moving Forward

Conclusion

About Aspial� The company started out as a retailer of jewellery in 1970.� Today, Aspial Corporation Limited is an investment holding company with 3 core businesses, namely jewellery, property

development and financial service� Jewellery

- Leading jewellery retailer in Singapore with 72 retail stores across Singapore and 1 in Ho Chi Minh City- 4 established jewellery brands i.e. “Aspial”, “Lee Hwa Jewellery”, “Goldheart Jewellery” and “Citigems”

� Property Development- Successfully launched and completed more than 25 property projects in Singapore since 2001- Involved in commercial, residential and mixed developments in good locations in Singapore

� Financial Service- Provides pawnbroking services via a modern, professional and customer centric store concept- 24 locations in Singapore.- Listed Maxi-Cash on Catalist on 22 June 2012

� Listed on the Singapore Stock Exchange with market capitalisation of about S$580million as at 3 Sep 2012

3

Jewellery (44%)

Property (41%)

Financial Services (15%)

Financial Summary

S$’ 000 Year ended

31 Dec 2009

Year ended 31 Dec 2010


6 months ended 31 June 2012

Revenue 267,974 280,258 420,324 200,097

EBITDA 24,580 15,152 67,049 34,974

EBITDA Margin (%) 8.87% 5.41% 15.95% 17.48%

EBIT 19,949 9,050 60,702 31,906

Total Debt 147,342 212,901 321,651 278,079

Total Assets 319,713 385,079 569,512 587,702

EBITDA / Interest (x) 19.23 6.35 19.30 16.99

Debt to Assets (%) 46% 55% 56% 49%

Diversified Revenue Mix (Segmental Revenue Breakdown 2009-2011)

Aspial Corporation Ltd

Aspial International

Pte Ltd

Maxi-Cash Financial Services

Ltd

Aspial-Lee HwaJewellery Singapore

Pte Ltd

Aspial-LHJ Goldheart

100% 100% 49%

100%100%

81.08%

100% 100%

Maxi-Cash

100%

Jewellery Business Financial Services

Group Structure

Maxi-Cash Maxi-Cash

4

World Class Land Pte Ltd

Aspial-LHJ Jewellery

Pte Ltd

Goldheart Jewellery

Pte Ltd

CitigemsPte Ltd

World ClassPropertyPte Ltd

World ClassDevelopment

Pte Ltd

World ClassCapital Pte Ltd

Advance Property Pte Ltd

KensingtonLand

Pte Ltd

KensingtonVillage Pte Ltd

Bayfront Ventures

Pte Ltd

90%

100% 100% 80% 100% 40% 40% 50%

Property Development Business

Maxi-Cash Jewellery Group Pte

Ltd

Maxi-Cash Group Pte

Ltd

Maxi-Cash Jewellery

Pte Ltd

Jewellery Business

Our 4 key jewellery brands target different market

segments. This enables us to focus on fulfilling

customers’ preferences such as merchandise and price

range more effectively.

• Despite the lesser number of stores in 2011, we managed to improve store efficiency andachieve higher sales from existing retail stores.

• Revenue from the jewellery business increased by 8.9% from S$146.0 million in FY2010 toS$159.0 million in FY2011. The Group’s jewellery business registered pre-tax profits of S$4.0

5

S$159.0 million in FY2011. The Group’s jewellery business registered pre-tax profits of S$4.0million in FY2011 as compared to a loss of $2.8 million in FY2010.

Value SegmentMainstream

SegmentMass Luxury

SegmentLuxury Segment

Property Development

• Through World Class Land Pte Ltd, we are involved in commercial, residentialand mixed developments in good locations in Singapore.

• Since 2001, we have successfully launched and completed more than 25property projects in Singapore.

• Group revenue from the property development business surged 116.7% fromS$81.9 million in FY2010 to S$177.5 million in FY2011. Substantial growthin revenue was contributed by the progress recognition of revenue fromEspira Suites, Heritage East, SOHO Life, Onan Suites, Cavan Suites andPalmera East projects.

6

Project TypeTotalUnits

LaunchDate

UnitsLaunched

% Sold Based on

Units Launched

Expected TOP

CardiffResidence

Residential 163 4Q 2011 163 100% 1H 2013

ParcRosewood

Residential 689 1Q 2012 689 97% 1H 2013

EastVillage

Retail 108 1Q 2012 100 95% 2H 2013

EastVillage

Residential 90 1Q 2012 90 100% 2H 2013

8 Bassein Residential 74 2Q 2012 74 76% 2H 2014

Latest property development projects

Financial Service Business

• Our financial service business Maxi-Cash was incorporated Apr2008, and is recently listed on Catalist of SGX-ST on 22 June 2012.

• The financial service business has 3 wholly-owned subsidiaries:• Maxi-Cash Group which operates the pawnshops through its

subsidiaries• Maxi-Cash Jewellery which carries out the retail and trading of

pre-owned jewellery and watches; and• Maxi-Cash Jewellery Group, which manages the inventory

and carries out the trading of pre-owned jewellery and watches.• Since listing, Maxi-Cash’s share price

has been on a steady uptrend.

7

has been on a steady uptrend.Currently, shares are trading around45% above its IPO price. Marketcapitalisation of about S$130m as 3Sep 2012.

• In FY2011, Maxi-Cash achievedanother year of record loans to itscustomers. Its revenue increased by59.7% from S$54.9 million in FY2010to S$87.7 million in FY2011.

• By having the largest network ofpawnshops in Singapore, the Groupthrough Maxi-Cash continues tostrengthen its leadership position inthe market.




8



Conclusion

S$’ 000 Year ended 31 Dec 2009



6 months ended 30 Jun

2012

Cash & Cash Equivalents

16,856 19,125 28,163 51,202

Properties Held for Sale

11,247 - - 3,596

Development Properties

126,091 166,496 262,933 182,888

Financial SummaryBalance Sheet

9

Total Assets 319,713 385,079 569,512 587,702

Long-term borrowings & loans

77,314 72,284 136,745 131,067

Short-term borrowings & loans

69,491 128,867 168,809 147,012

Total Liabilities

222,867 286,621 413,705 393,184

Net Assets 96,846 98,458 155,807 194,518

Total Equity 96,846 98,458 155,807 194,518

Financial SummaryIncome Statement

S$’000 Year ended 31 Dec 2009



6 months ended 30 Jun

2012

Revenue 276,974 280,258 420,324 200,097

Interest Expense 1,278 2,388 3,474 2,058

Share of Results from Associates

- 39 243 7,258

Profit before Tax 18,671 6,662 57,228 29,848

10

Profit before Tax 18,671 6,662 57,228 29,848

Operating Profit After Tax 11,350 2,325 45,612 16,733

Net Profit 14,632 5,595 47,618 25,045




11



Conclusion

Investment Highlights

Diversified revenue streams and strong revenue growth from property and financial service businessesDiversified revenue streams and strong revenue growth from property and financial service businesses

Strong financial performance supported by largely-sold property projectsStrong financial performance supported by largely-sold property projects

Market leaders and strong brand names for Pawnbroking and Jewellery businessesMarket leaders and strong brand names for Pawnbroking and Jewellery businesses

1

2

3

12

Jewellery businessesJewellery businesses

Strong future cash flow and profit from largely-sold property projectsStrong future cash flow and profit from largely-sold property projects

Fast-growing developer with strategic JV with Fragrance Group. Huge potential from 3 newly-acquired sites Fast-growing developer with strategic JV with Fragrance Group. Huge potential from 3 newly-acquired sites

Excellent stock performance, MTN programme and dividend yieldExcellent stock performance, MTN programme and dividend yield

3

4

5

6

EBITDA / Interest (x) Debt to Assets (%)

(x)

Strong financial performance supported by healthy financial profile: Excellent Financial Profile with Strong Liquidity

1

19.23

6.35

19.30 16.99

-

5.00

10.00

15.00

20.00

25.00

FY09 FY10 FY11 1H12

46%

52%54%

47%

42%

44%

46%

48%

50%

52%

54%

56%

FY09 FY10 FY11 1H12

13

Current Assets / Short Term Debt (x) Current Ratio (x)

(x) (x)

FY09 FY10 FY11 1H12 FY09 FY10 FY11 1H12

4.12

2.73

3.17

3.67

-

0.50

1.00

1.50

2.00

2.50

3.00

3.50

4.00

4.50

FY09 FY10 FY11 1H12

1.98

1.67

2.04 2.14

-

0.50

1.00

1.50

2.00

2.50

FY09 FY10 FY11 1H12

Revenue (S$’M) EBITDA Margin (%)

Strong financial performance supported by healthy financial profile: Delivering Strong Growth in Earnings

1

277 280

420

200

-

50

100

150

200

250

300

350

400

450

FY09 FY10 FY11 1H12

9%

5%

16%17%

0%

5%

10%

15%

20%

FY09 FY10 FY11 1H12

14

Net Profit (S$’M) Return on Equity (%)

FY09 FY10 FY11 1H12 FY09 FY10 FY11 1H12

14.6

5.6

47.6

25.0

0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

40.0

45.0

50.0

FY09 FY10 FY11 1H12

15%

6%

31%

13%

0%

5%

10%

15%

20%

25%

30%

35%

FY09 FY10 FY11 1H12

52%

29%

Jewellery

(S$146.05M)

Property

(S$81.95M)

Segmental Revenue Breakdown in 2010

CORPORATE PROFILEDiversified Revenue Streams

42%

38%Jewellery

(S$ 158.46m)

Property

(S$177.46M)

Segmental Revenue Breakdown in 2011

2

15

Financial Service

(S$52.26M)

(S$81.95M)

19% Financial Service

(S$84.40M)

20%

Segmental Revenue Breakdown Averaged Across 2009-2011

Jewellery S$ 144.77m (44%)Property S$ 132.41m (41%)Financial Service S$ 48.67m (15%)

Well-established Market Position Strong Pledge Book & Revenue Growth

Market Leading Position in Key BusinessesFinancial Service: Leader and Innovator in the Pawnbroking Industry

3

15.2

63.4

122.6

164.2

-

20.0

40.0

60.0

80.0

100.0

120.0

140.0

160.0

180.0

Trade Receivables($$'000)($$'000)

16

16

Central North West East

Bugis Ang Mo Kio Boon Lay Marine ParadeLucky Plaza Toa Payoh Jurong East BedokPeople's Park Northpoint Jurong West Joo ChiatSerangoon Road Woodlands Clementi Paya LebarBukit Merah Choa Chu Kang GeylangNex Mall Bukit Batok AljuniedHarbourfront Yew Tee

� Leader with the largest network of 24 strategic locations� Innovator offering contemporary, bank-like experience� Recession-Proof Business

FY09 FY10 FY11 1H12

9.4

52.3

84.4

46.4

-

10.0

20.0

30.0

40.0

50.0

60.0

70.0

80.0

90.0

FY09 FY10 FY11 1H12

Revenue($$'million)

• Parkway Parade

• Plaza Singapura

• Tampines Mall

• Tiong Bahru Plaza

• Novena Square

• VivoCity

•West Mall

• Changi Airport T1


• 313@Somerset

• Ang Mo Kio Hub

• Bugis Junction

• Causeway Point

• Citylink Mall

•Compass Point

• IMM

• Marina Bay Sands

• ION Orchard

• 313@Somerset

• AMK Hub

• Bugis Junction

• Causeway Point

• Centrepoint

• Lot 1

• Marina Square

• NEX

• Tiong Bahru Plaza

• Northpoint

• Parkway Parade

• Tampines Mall

• Bugis Junction

•Wisma Atria


• Tampines Mall

• ION Orchard

• Vivocity

• Jurong Point

• AMK Hub

• Toa Payoh HDB Hub

• NEX

• IMM

•313@Somerset

•Parkway Parade

• Citylink Mall

Market Leading Position in Key BusinessesJewellery: Largest network with 72 stores in Strategic Locations

3

17

• IMM

• ION Orchard

• Junction 8

• Jurong Point JP1

• Lot One

• Marina Bay Sands

• NEX

• Northpoint Shopping Centre

• Centrepoint

• Changi Airport

• Clementi Mall

• Compass Point

• Great World City

• Hougang Mall

• International Building

• Junction 8

• Jurong Point

• Tampines Mall

• VivoCity

•West Mall

•Wisma Atria

•Plaza Singapura

• Jurong Point

• Plaza Singapura

• Junction 8

• Causeway Point

• Marina Square

• Marina Bay Sands (2 shops)

• Centrepoint

• Paragon

• Citylink Mall

• Compass Point

Cardiff Residence Parc Rosewood 8 Bassein

Type Residential

Total Units 163

Launch Date 4Q 2011

Units Launched 163

Sold Based on Units Launched

100 %

Type Residential

Total Units 689

Launch Date 1Q 2012

Units Launched 689


97 %

Type Residential

Total Units 74

Launch Date 2Q 2012

Units Launched 74


76%

Strong Future Cashflow and Profit ContributionRobust sales of recent projects

4

18

Units Launched100 %

Expected TOP 1H 2013

Units Launched


Units Launched


East Village

Type Residential

Total Units 90

Launch Date 1Q 2012

Units Launched 90


100 %


Type Retail

Total Units 108

Launch Date 1Q 2012

Units Launched 100


95 %


Resi 100% sold

Retail 95% sold

East Village

Cardiff Residence� High revenue visibility

- Based on the units sold, the Group has locked in totalrevenue of more than S$400 million as at 30 Jun 2012which will be progressively recognised in accordance withthe stage of construction

Strong Future Cashflow and Profit ContributionRobust sales of recent projects

100% sold

4

� Good track records

26.0

49.2

150.0

200.0

250.0

Revenue & PBT

19

97% sold

76% sold

8 Bassein

Parc Rosewood

Retail 95% sold

137.8 81.9

177.5

74.4

9.0 26.5

-

50.0

100.0

FY09 FY10 FY11 1H12

18.9%

11.0%

27.7%

35.6%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

40.0%

FY09 FY10 FY11 1H12

PBT Margin

5 Fast-Growing Developer with Strategic JV with FragranceHuge Potential from 3 newly-acquired sites

Tanah Merah Key Point Tai Keng Court

Type Residential

Total GFA

455,656

Target Launch

2H 2012

Est. No. 592 units

TypeRetail &

Residential

Total GFA 435,000

Target Launch

1H 2013

Est. No. Comm

450

Est. No. Resi 300

TypeRetail &

Residential

Total GFA 159,000

Target Launch

1H2013

Est. No Comm

100

Est. No. Resi 150

20

� Robust growth expected in revenue

- At current market prices, the potential sales revenue from the remaining unsold units of the projects launched and theprojects yet to be launched attributable to the Group is estimated to be in excess of S$1,000 million.

- Based on current prices, the Group is expected to enjoy a healthy margin from potential sales revenue for these projects.

� Increase in size of development

85,000

-

98,092

451,440

-

120,000

-

53,900

-

455,656 435,000

159,000

FY09 Apr'10 Nov'10 May'11 Jun'11 Mar'12 Apr'12 Aug'12

Tai Keng Court

Key Point

Tanah Merah

8 Bassein

East Village

Parc Rosewood

Cardiff Residence

GFA (sq. ft)

Excellent Stock Performance, MTN programme and Dividend Yield

6

� STOCK PEFORMANCE

� S$150 million Medium Term Note Programme

21

� Dividend

- The Group has proposed an interim dividend of 0.75 cents in 1H 2012 as compared to 0.50cents in 1H 2011 under its scrip dividend scheme

- The scrip dividend scheme which was introduced in January 2012, allows the Group to retaincash which would otherwise be payable as dividend. The cash is used to strengthen theGroup’s working capital and to fund future growth.

� S$150 million Medium Term Note Programme

- The Group established a S$150 million MTN programme in July 2012

- The Group has successfully launched and issued $85 million 3-year 5.00% notes under theprogramme

- The bond is used to support the Group’s working capital and to fund growth




22



Conclusion

Outlook & Strategy

Financial Service

� Secure strategic locations where business is viable and Max-Cash is not represented

� Speed up planning and marketing of newly-acquired sites

� Rationalise store network to increase store efficiency

Strategy

� Demand for loans is likely to remain healthy

� Increasing acceptance of pawnbrokingas an alternative source of financing

Outlook

Property

Strategy

� URA Q2 2012 property index shows increase in residential property price

� Demand for property remains strong amidst the low-interest environment

Outlook

Jewellery

Strategy

� Singapore GDP growth expected to be about 1%

Outlook

23

represented

� Strengthen brand equity and awareness

� Ensure construction progress smoothly� Maintain tight control on operating cost




24



Conclusion

Investment Highlights

Diversified revenue streams and strong revenue growth from property and financial service businessesDiversified revenue streams and strong revenue growth from property and financial service businesses

Strong financial performance supported by largely-sold property projectsStrong financial performance supported by largely-sold property projects

Market leaders and strong brand names for Pawnbroking and Jewellery businessesMarket leaders and strong brand names for Pawnbroking and Jewellery businesses

1

2

3

25

Jewellery businessesJewellery businesses

Strong future cash flow and profit from largely-sold property projectsStrong future cash flow and profit from largely-sold property projects

Fast-growing developer with strategic JV with Fragrance Group. Huge potential from 3 newly-acquired sites Fast-growing developer with strategic JV with Fragrance Group. Huge potential from 3 newly-acquired sites

Excellent stock performance, MTN programme and dividend yieldExcellent stock performance, MTN programme and dividend yield

3

4

5

6

Thank You

Aspial Corporation Limited

26

Important Notice

Important InformationThis presentation does not constitute or form any part of any offer or invitation to sell or issue, or any solicitation of any offer to subscribe for or purchase any securities and nothing

contained herein shall form the basis of or be relied upon in connection with any contract or commitment whatsoever. This presentation is being furnished to you solely for your

information and may not be reproduced or redistributed to any other person or published, in whole or in part, for any purpose. No representation or warranty, express or implied, of any

nature is given as to, and no reliance should be placed on, the fairness, correctness, accuracy or completeness of the information or opinions contained herein.

This presentation is being communicated only to persons who have professional experience in matters relating to investments and to persons to whom it may be lawful to communicate it

to (all such persons being referred to as "relevant persons"). This presentation is only directed at relevant persons. Solicitations resulting from this presentation will only be responded to if

the person concerned is a relevant person. Other persons should not rely or act upon this presentation or any of its contents.

The information and opinions in this presentation are provided as at the date of this presentation and are subject to change without notice. No assurance is made as to the accuracy of

this presentation and it may be incomplete or condensed and it may not contain all material information concerning the Company or the group of which the Company is a part (the

“Group”). The information in this presentation is not financial product advice and does not take into consideration the investment objectives, financial situation or particular needs of any

particular person. There is no obligation to update, modify or amend this communication or to otherwise notify the recipient if information, opinion, assumptions, projections, forecasts or

estimates set forth therein, changes or subsequently becomes inaccurate. None of United Engineering Limited (the "Company"), nor any member of the Group, nor any of their respective

affiliates, officers, employees, advisors or representatives shall have any liability whatsoever (in negligence or otherwise) for any loss howsoever arising from any use of or reliance on

the information or opinions contained in this presentation.

No offering of the Company’s securities will be registered under the U.S. Securities Act of 1933, as amended, or with any securities regulatory authority of any state or other jurisdiction of

the United States. Subject to certain exceptions, the Company’s securities may not be offered, sold or delivered within the United States or to, or for the account or benefit of, any U.S.

27

the United States. Subject to certain exceptions, the Company’s securities may not be offered, sold or delivered within the United States or to, or for the account or benefit of, any U.S.

person (as defined in Regulation S under the U.S. Securities Act).

Neither this presentation nor any copy of such presentation may be taken or transmitted into the United States or distributed, directly or indirectly, in the United States. The information

presented here is not an offer for sale within the United States of any securities of the Company.

The distribution of this presentation in certain jurisdictions may be restricted by law and persons into whose possession this presentation comes should inform themselves about, and

observe, any such restrictions.

By attending this presentation or by accepting this document, you will be taken to have represented, warranted and undertaken that: (i) you are a relevant person (as defined above); (ii)

you are not a person located in the United States or any agent, fiduciary or other intermediary acting on a non-discretionary basis for a principal giving instructions from within the United

States or any U.S. person; (iii) you are bound by the foregoing limitations; and (iv) that any investment in any securities of the Company will be made solely on the basis of the disclosure

document prepared by the Company and not on the basis of this presentation. Any failure to comply with these restrictions may constitute a limitation of applicable securities law.

Forward Looking StatementsThis presentation contains forward-looking statements which may be identified by their use of words like "plans", "expects", "will", “guidance"," anticipates", "believes", "intends", "projects",

"estimates" or other words of similar meaning. All statements that address expectations or projections about the future, including, but not limited to, statements about the strategy for

growth, product development, market position, expenditures, and financial results, are forward-looking statements.

All forward-looking statements are subject to risks and uncertainties as they are based on certain assumptions and expectations of future events. The Company cannot guarantee that

these assumptions and expectations are accurate or will be realised. The actual results, performance or achievements, could thus differ materially from those projected in any such

forward-looking statements. The Company has no obligation to, and does not intend to, publicly amend, modify or revise any forward looking statements, on the basis of any subsequent

developments, information or events, or otherwise.

Documents

Investor Presentation 4 September 2012...Investor Presentation 4 September 2012 Aspial Corporation Limited 1. ... Ltd Group Pte Ltd Jewellery Pte Ltd. ... S$159 .0 million in FY 2011