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
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izu
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ido
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Ko
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Fu
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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
No. of golf courses 12
Appraisal value (JPY bil) 17.8
Greater Osaka region
No. of golf courses 15
Appraisal value (JPY bil) 37.4
Other regions
No. of golf courses 27
Appraisal value (JPY bil) 21.3
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
Central New Golf Club, Tokyo Region (Ibaraki)Huis Ten Bosh GC Nagasaki (Other Region)
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
Central New Golf Club, Tokyo Region (Ibaraki)Huis Ten Bosh GC Nagasaki (Other Region)
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
Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar
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
Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar
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
Central New Golf Club, Tokyo Region (Ibaraki)Huis Ten Bosh GC Nagasaki (Other Region)
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
For more information, please visit www.agtrust.com.sg