Yoma Strategic : FY2021 Full Year Result Presentation

6M-Sept2021

Earnings Results

Yoma Strategic Holdings Ltd.	1

6M-Sep2021 Key Financial Highlights - Profit and Loss

1) Severe disruptions

6M-Sep2021 included periods of extraordinary disruption in Myanmar. Extended holidays were announced after the Myanmar New Year in April, whilst a severe third wave of COVID-19 occurred during July and August with significant fatalities and most households affected.

2) Signs of recovery

The third wave of COVID-19 severely impacted Myanmar along with continued uncertainty in the operating environment. However, the Group's businesses, in particular Real Estate, F&B and Wave Money have begun to recover.

1. Financial management and balance sheet stability continue to be the Group's main priorities

Stringent financial management measures, including the strict controls on fixed overheads, remain in place. The Group continues to work with its counterparties to maintain balance sheet flexibility and a stable liquidity position.

2

Statement of Income	6M-Sep2020	6M-Sep2021
	(US$ million)	(US$ million)
Revenue	51.2	43.4
Cost of sales	(34.6)	(28.7)
Gross profit	16.6	14.7
Other (losses)/gains	(16.5)	28.8
Expenses:-
Administrative	(24.4)	(22.1)
Finance	(12.9)	(10.6)
Interest expenses on borrowings	(8.6)	(9.7)
Interest expenses on lease liabilities and trade payables	(1.9)	(1.9)
Finance fees	(1.2)	(1.1)
Currency translation (gains)/losses on borrowings-net	(1.2)	2.1
Share of losses of joint ventures	(1.2)	(1.8)
Share of losses of associated companies	(6.7)	(0.8)
(Loss)/profit before income tax	(45.2)	8.3
Income tax expense	(2.8)	(2.3)
Net (loss)/profit	(48.0)	6.0
Core Operating EBITDA	(15.9)	26.4
Core Operating EBITDA excluding extraordinary items and	(8.6)	47.2
current year provisions

6M-Sept2021 Profit and Loss Key Items

	Statement of Income	6M-Sept2021
			(US$ million)
I		Revenue	43.4
	Cost of sales	(28.7)
	Gross profit	14.7
II		Other gains	28.8
	Expenses:-
	Administrative	(22.1)
	Finance	(10.6)
	Share of losses of joint	(1.8)
	ventures
	Share of losses of associated	(0.8)
	companies
	Profit before income tax	8.3
	Income tax expense	(2.3)
	Net loss	6.0
	Core Operating EBITDA	47.2
	excluding extraordinary items
	and current year provisions

I. Revenue

• HRGCCL recognised a US$6.5 million net fair value gain on its investment properties (see below explanation). Therefore, 6M-Sept2021 revenue included positive operator fee income1 of US$4.8 million which included the Group's share of the fair value gain on HRGCCL's investment properties of US$4.5 million.

1. Key items in other gains

US$
million
(58.3)	Fair value losses on investment properties in US$ terms. Valuation exercise conducted in US$ as 1) rent is charged in US$ and
	2) selling prices of comparable properties in Myanmar are determined in US$ psft.
99.7	Currency translation gains at the Myanmar subsidiary level from the conversion of US$ valuation into MMK. US$ appreciated
	more than 41.3 % against MMK since 30 September 2020.
41.4 2	Net fair value gain on investment properties held by Myanmar subsidiaries with MMK as their functional currency.
(6.4)	Impairment losses related to the Group's agricultural investments and the goodwill in KOSPA, which were both affected by the
	COVID-19 pandemic and current operating environment.
(2.2)	Fair value loss on the Group's investment in a private equity fund and the Mandalay Airport.
1.8	Interest income from the convertible loan to Yoma Micro Power to pre-fund the scale up of its business.
(2.8)	Fair value loss from the shopping mall in Dalian, other currency translation losses, gains from the disposal of PPE, etc.
(3.0)	Provisions for the winding up costs in relation to Metro
28.8	Other gains

1 The operator fee income revenue, which is based on a 70% share of the profit of HRGCCL, the owner of Pun Hlaing Golf and Country Club, includes an annual valuation exercise in HRGCCL's 6M-Sept2021's income statement.

2 Currency effects from the consolidation of the Group's subsidiaries with different foreign currencies (which includes the translation of non-monetary assets, such as investment properties, into the Group's reporting currency) is reflected in other comprehensive income ("OCI") and affects the currency translation reserves in balance sheet equity. The effect of the strengthening of USD against MMK would result in a countervailing OCI loss during this consolidation exercise which has a negative impact on the value of the net assets of the Group.

3

Illustration of Investment Properties FMV Movements

P&L Effects in Local Subsidiaries MMK Accounts

Consolidation into the Group USD Balance Sheet

Subsequent

expenditures

MMK 423.9b

on IPs

MMK 358.3b

$273.4m

$2.7m

Fair

value gain

MMK 61.5b*

(equivalent

$41.4m)

$228.9m

$217.8m

Currency translation

losses arising from

Decline in

USD

consolidation through

annual

other comprehensive

appreciation

valuation in

income

vs MMK

USD terms

$88.6m**

MMK 148.0b

$58.3m

(equivalent

(equivalent

$99.7m)

MMK 86.5b)

Beginning Balance	Ending	Ending	Ending
@ 1 Oct 2020	Balance @ 30	Balance @	Balance @ 30
	Sep 2021	30 Sep 2021	Sep 2021

*Fair value gain in subsidiary's income statement translated using average rate 1484 for FY2021 in the Group's consolidated income statement	4
** Arising from the difference in closing rate 1311 for FY2020 and 1852 for FY2021

6M-Sep2021 Key Financial Highlights - Balance Sheet

Net Debt & Net Gearing Ratio

US$ million

1200						Net Debt			Total Capital				Gearing Ratio
										32.3%
1000											27.7%
			27.8%			30.4%

Pro forma net gearing

800ratio upon completion of the Ayala second tranche

600

400

200

0

Sept 2020

Mar 2021

Sept 2021

• The increase in gearing was mainly due to the decease in equity in 6M-Sep2021. Gross borrowings decreased during the period.
• Gearing ratio continues to remain well below the maximum target of 40%.

35%

30%

25%

20%

15%

10%

5%

0%

1 The net gearing ratio is calculated as net debt divided by total capital. Net debt is calculated as borrowings (excluding loans from non-controlling interests) less cash and cash equivalents. Total capital is calculated as total equity plus net debt.

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