The Straits Trading Company Limited Corporate...

A u g u s t 2 0 1 6

The Straits Trading Company Limited

Corporate Profile

REAL ESTATE • HOSPITALITY • RESOURCES © Copyright 2016, The Straits Trading Company Limited. All rights reserved.

Disclaimer

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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 the

solicitation 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 any

other 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 or

investment 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 the

accuracy 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 or

completeness 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 23 June 2016, and are subject to change without notice or update. The Company does not make any

representation 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 strategy

for 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 be

realized. 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. 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. These

factors 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 hospitality

investments 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 operates

and 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 the

industries 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 the

hospitality-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-Pacific

region 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 price

of 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 and

acts 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 we

operate. 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 this

Presentation.

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 this

document under the laws of the jurisdictions in which they are located or other applicable laws.


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Real EstateReal Estate

Investment TrustHospitality

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

89.5% 20.1% *11.2% 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.

�One of the largest

real estate fund

managers in the

region


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)


hospitality operators in

the region with around 90

properties and over

13,000 rooms under

management

STC’s real estate ecosystem

� The second largest

producer of refined

tin metal in the

world

54.8%

* Aggregate interest at Tecity Group of companies

New investments that complement these platforms

Asset / Fund

Management

STC Group – A Diversified Investment Company


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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 NTU 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 & SID

Dr Gary Weiss (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

Tham Kui Seng (ID)• 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 Singapore Land Authority

• 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, and Malaysia Smelting Corporation

Berhad, Board Member of SGX and serves on the board of SIC of

Singapore

• Chairman of Hup Soon Global Corporation Limited

• ID of Banyan Tree Holdings Ltd and F&N Ltd

• Advisory Council Member of ASEAN Business Club

• Former Senior Adviser to EQT Funds Management Ltd

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

Board of Directors are Industry Veterans

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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.

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 ESTATE

High-quality but

low-yielding real

estate portfolio

HOSPITALITY

Small-scale niche

operator

RESOURCES

Variety of

resources

investments

Transformed

into a dynamic

growth

platform

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

INVESTMENTS

Passive 17%

stake in WBL


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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 of

corporate governance and strong

business ethics

Business Network & Connectivity

Management Expertise

Corporate Finance and M&A Capabilities

Good Governance & Business Ethics

ResourcesHospitality

S T C G r o u p

• 30% JV with Far

East Orchard

• Investment in Far

East Hospitality

Trust

Asset / Fund

Management

Real Estate


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STC’s Major Shareholder

Major Shareholder

The Cairns Pte Ltd (Tecity Group)

70.0%1

� 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 FY2015 Annual Report

Overview of The Tecity Group


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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

*11.2%

• Direct real estate

investments

• Other real estate

opportunities

SRE Capital________________________

• Investing in real estate and

infrastructure related

securities

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 at Tecity Group of companies


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� 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, that invests

in a diversified portfolio of real estate equities in Asia Pacific

� A leading integrated real estate fund manager with revenues from managing REITs,

private real estate funds, and providing real estate management services and

corporate finance advisory services

� Rental income provides recurring income

� Platform for value-accretive acquisitive growth


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Straits Real Estate Pte. Ltd. (“SRE”) is a real estate investment company that seeks out real

estate related investments and opportunities globally. SRE was incorporated in November

2013 with a capital commitment of up to S$950 million.

• Seek to deploy capital into medium-to-high returning

real estate investment opportunities across global markets

• Strong commitment and support from shareholders and

strategic partners to carry out investment strategy

• High degree of flexibility to invest in direct real estate and

real estate backed instruments and securities

Straits Real Estate Pte. Ltd.


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SRE Capital Pte. Ltd.

SRE Capital Pte. Ltd. (“SRE Capital”), a wholly-owned subsidiary of SRE, is a Singapore-

based asset management company that specialises in investing in publicly listed real

estate and infrastructure related securities within the Asia Pacific region.

Vision• To be a leading investment manager of real estate related

securities in Asia Pacific

• Aim to maximise returns for investors through creating

and executing value-added strategies

Mission

Deliver returns commensurate with core and core-plus

commercial real estate markets in Asia Pacific through listed

securities space while managing market volatility inherent in

listed public securities.


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Management Team at Straits Real Estate

Desmond Tang (Chief Executive Officer)

Andy Lim (Director, Business Development)

Manish Bhargava (Director, Research and Trading)

• Works with CEO to develop and implement growth opportunities

and investments

• Executive Director of John Lim Family Office (JLFO), responsible for

sourcing, structuring, negotiating and executing the group’s

investments

• Formerly Head of Research and Trading at APN’s Asian Real Estate

Securities business, including ARA Asian Asset Income Fund

• 13 years experience in real estate investment

• Experienced Fund Manager responsible for conducting research and

investing in Asian real estate securities

Stephen Ray Finch (CEO/CIO)• Over 34 years of experience in securities trading and fund management

• Formerly CEO and Director at ARA Strategic Capital/APN Funds Management

(Asia), fund manager of ARA Asian Asset Income Fund

• Financial Adviser to 9 out of 13 REITs listed in Singapore as well as landmark

REIT listings in Malaysia, Thailand and China

Adeline Fong (Director, Asset Management)

Lai Jing Dong (Director, Investments)

• Over 18 years of experience in regional real estate development, asset

and fund management

• Formerly Assistant Director for Asset Management with Alpha Investment Partners

• Adept in optimising asset returns across various fund strategies

• Focused on sourcing and executing real estate transactions

• Former Vice President at The Carlyle Group where he established its real estate

presence in South East Asia and Australia

• Former Executive Director in Real Estate Principal Investment at Goldman Sachs

Japan

Goh Yah Huay (Director, Finance)• 20 years experience in Accounting, Controllership, Financial Planning &

Analysis

• Formerly Vice President of Finance at Straits Trading responsible for

finance function at Hospitality Division

• Strong track record of identifying and evaluating business and financial

challenges

• Over 23 years of experience in real estate investment and management

• Formerly Co-Head and Managing Director of Alpha Investment Partners

• Strong track record executing various strategies across markets and

property sectors

Straits Real Estate

SRE Capital


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STC’s Partners Are Leading Players

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$28.9 billion (as at 1Q

2016)

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


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Straits Real Estate - Investment Portfolio

114 William Street OfficeSGD 58.7 mm*

Suntec REITSGD 120.0 mm*

ARA Harmony Fund IIISGD 72.8 mm*

Summit Development FundSGD 100.0 mm*

Chongqing Retail MallSGD 103.0 mm*

Greater Tokyo Office FundSGD 80.0 mm*

Chongqing

Tokyo

Australia

Melbourne

Malaysia

Singapore

*Committed or invested equity in SGD equivalent

Japan Residential PortfolioSGD 77.2 mm*

Osaka

ARA Harmony Fund IIISGD 72.8 mm*


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SRE Investment – Maiden Investment in Chongqing

Chongqing Retail

Mall

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


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ARA – Award Winning Premier Real Estate Fund Manager

� 20.1% owned associate of STC, ARA is one of the largest real estate fund managers in the region, with

S$29.7 billion of AUM (as at 2Q2016)

� 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 China

Managed by Hui Xian REIT Manager

Suntec City, Singapore

Managed by Suntec REIT Manager


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FEHH – STC’s JV Hospitality Operating Arm

� FEHH, STC’s hospitality joint venture with Far East Orchard, manages a combined hospitality portfolio of over 90

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


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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 mining of tin in Perak, Malaysia

� Producer of premium high-purity refined tin (“MSC Straits”)

Malaysia Smelting Corporation - A Leading Supplier of

Refined Tin Metal


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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 divestments of

low-yielding assets to higher returning real estate opportunities

Continuously developing and enhancing 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

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The STC Strategy

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