ASEANA PROPERTIES · 2013 to 16 May 2013 on 17 May. At the same time, the Company issued its Quarterly Investor Update for the quarter ended 31 March 2013. This showed small changes

ASEANA PROPERTIES www.aseanaproperties.com

COMPANY UPDATE 12 JULY 2013

Aseana is focused on extracting the maximum value from its ongoing

projects despite challenging, although improving, conditions in the

local property markets. High end residential properties in Malaysia

have fared less well than the markets for mid-priced properties and

prime retail space, but the pace is picking up again. In Vietnam,

government counter-inflationary measures have affected the real estate

sector and the project pipeline has diminished. Share-holders will

decide on continuation of the Company in 2015 by which time Aseana

should have realised substantial value from the portfolio.

Aseana produced an Interim Management Statement for the period 1 January

2013 to 16 May 2013 on 17 May. At the same time, the Company issued its

Quarterly Investor Update for the quarter ended 31 March 2013. This showed

small changes in the Group’s unaudited financial position as measured by its NAV.

The key results showed revenues of US$2.77m for Q1 2013 (Q1 2012:

US$7.47m); unaudited loss before tax of US5.63m (Q1 2012: US$1.80m loss) and

an after tax loss of US$6.09m (Q1 2012: US$1.92m loss). Reduced revenues and

profits were mainly due to slower than anticipated sales of completed properties in

SENI Mont’ Kiara, Aseana’s largest development and a flagship project.

The unaudited Q1 NAV at 31 March 2013 was US$176.74m against US$183.58m

at 31 December 2012. The realisable NAV (RNAV) was US$283.82m at 31 March

2013. Although unaudited, this compares with US$244.84m at 31 December 2012.

The local currency value increased by nearly 16%, largely as a result of the

revaluation of the Aloft Sentral Hotel and there was only a limited effect from

exchange rate movements, the US$ strengthening 1.1% against the Ringgit.

Operational highlights in Q1 included:

o opening for business of Kuala Lumpur Sentral Hotel (Aloft) on 22 March 2013;

o City International Hospital (CIH), Ho Chi Minh City completion (end of March);

o Nam Long Investment Corporation listing on the Ho Chi Minh Stock Exchange

(HOSE) in which Aseana holds a 16.3% share interest (8 April 2013).

Aseana increased its borrowings by over US$21m to US$165.95m by the end of

Q1 to fund two core developments, the Aloft Hotel and CIH. The net debt to equity

gearing ratio has now risen to 79.04% (31 December 2012: 64.19%), but should

decline as the sales backlog declines. Cash of US$15.85m is tightly managed for

deployment to ongoing projects.

The focus of Aseana and its exclusive Development Manager, Ireka Development

Management Sdn Bhd (IDM), is on completing existing projects for planned

disposal and is not proposing at this stage to use the proceeds to replace or

expand the portfolio. The current share price on the LSE of USȼ42.0 stands at

discounts of 50% and 69% respectively to the unaudited 31 March 2013 NAV

(USȼ83.4) and RNAV (USȼ133.9) values.

Year end 31 Dec

Revenue (US$m)

Gr. Profit (US$m)

PBT (US$m)

PAT (US$m)

Dil EPS (US¢)

NAV PS (US¢)

DPS (US¢)

2011A 281.1 44.5 33.1 14.1 7.56 95.7 1.0

2012A 23.7 2.3 (16.6) (18.4) (7.94) 86.6 0.0

2013E* n/a n/a n/a n/a n/a n/a n/a 2014E* n/a n/a n/a n/a n/a n/a n/a * Forecasts from N+1 Singer, the house broker, are under review

SHARE INFORMATION

Code ASPL.L

Market Full List

Sector Real Estate Investment Share price USȼ42

12m high/low USȼ46-37

Issued shares 212.025m

Market cap US$89.05m

Broker N+1 Singer

SHARE PRICE PERFORMANCE

COMPANY DESCRIPTION

Aseana Properties Limited (ASPL) is an externally managed, closed ended property development company, investing in development projects in Malaysia and Vietnam. It recently announced proposals which if approved would result in the internalisation of its management and Aseana becoming an evergreen company.

FINANCIAL INFORMATION (31/03/13) (Unaudited)

Net Asset Value (NAV) unaudited US$176.74m

NAV per share unaudited US¢83.4

RNAV per share unaudited US¢133.9

Gross debt US$165.95m

Cash and bank equiv incl. fin. instruments US$15.85m

Net debt to equity 79.04%

FINANCIAL DIARY

Next interims announcement (tbc) 24 Aug 2013

Next year end 31 Dec 2013

Next half year end 30 Jun 2013

PREVIOUS CITY INSIGHTS REPORTS

Initiation Profile – 6 May 2010

Last Update – 4 July 2012



2

MANAGEMENT UPDATE

IMS covers the period 1 January

2013 to 16 May 2013

Following the results announcement on 24 April 2013, Aseana issued an Interim

Management Statement (IMS) covering the period from 1 January to 16 May 2013. It has

also published a Quarterly Investor Update for the Q1 period ended 31 March 2013. This

note covers 2013 Q1 development progress; economic and market conditions in each

country; the audited final results and, finally, the summary and conclusions.

Increased losses in Q1 2013… The IMS shows impact of patchy real estate market conditions as reflected in the

following:

Revenue of US$2.77m for Q1 (2012 Q1: US$7.47m);

Loss before tax US$5.63m (2012 Q1: loss US$1.80m);

Loss after tax US$6.09m (2012 Q1: US$1.92m);

Total comprehensive expense of US$7.20m (2012 Q1: income of US$1.34m);

Unaudited NAV US$176.74m at 31 Mar 2013 (31 Dec 2012: US$183.58m);

Unaudited RNAV US$283.82m at 31 Mar 2013 (31 Dec 2012: US$244.84m).

…due to slower sales of SENI Mont’

Kiara apartments

The revenues were mainly from sales of completed properties in SENI Mont’ Kiara which

has remained at 79% (3% of which are pending collection) of available units as at 30 April

2013 (78% at 31 December). In line with the changes in Aseana’s development strategy

as outlined previously, no new developments were started in the quarter, the focus being

to sell completed units at a time seemed appropriate to maximise the value. The

consolidated comprehensive expense statement reported a loss on foreign currency

translation of US$1.11m in Q1, the US dollar appreciating against the Malaysian Ringgit

(RM). As at 31 March 2013, US$1 = RM 3.093 compared with RM 3.058 at 31 December

2012. The US dollar also appreciated marginally against the Vietnam currency, the Dong,

with US$1 = VND 20,942 at 31 March 2013 against VND 20,840 on 31 December 2012.

No change in local currency values

except for the Aloft Hotel

The reported unaudited cost or market NAV values per share at the end of Q1 were:

NAV/share: USȼ83.4 (31 December 2012: audited USȼ 86.6 per share)

RNAV/share: USȼ133.9 (31 December 2012: USȼ $115.5 per share)

The IMS mentions that, expressed in local currency terms, there was very little change in

the market values of property assets.

Cash lower and gearing higher due

to work in progress

Cash and cash equivalents, including funds placed in held-for-trading financial

instruments, stood at US$15.85m at 31 March 2013 (31 Dec 2012: US$16.75m). This

decline was due planned investment in project work in progress and ongoing operating

expenses in three projects:

Four Points by Sheraton Sandakan hotel (FPSS)

Harbour Mall Sandakan (HMS)

Aloft hotel

The same factors led to an increase in Aseana’s borrowings to US$165.95m (31 Dec

2012: US$144.33m). The net debt to equity gearing ratio rose to 79.04% at the 31 March

(31 December 2012: 64.19%).



3

PORTFOLIO UPDATE

Portfolio progress now picking up The table below shows the portfolio constituents, their valuations, the basis for those

assigned values, and a reminder of the expected GDV for each project which have not

changed. Project NAVs are nearly all lower than a year ago. The listed Malaysian projects

(excluding Kota Kinabalu Seafront resort and residences which Aseana intends to dispose

of) have an NAV of US$125.25m compared with US$139.9m on the 31 March 2012, a fall

of 10.5%. For Vietnam, the active projects were valued at US$40.36m against US$50.0m

a year ago, a decline of 19.3%. One of these projects is a stake in Nam Long Investment

Corporation, seen as a means of accessing the real estate market in Vietnam. Of the

other Vietnam projects, only the International Hi-Tech Healthcare Park (IHTHP) and

Waterside Estates (formerly the Phuoc Long B project) remain within the Company’s

portfolio. Two other projects, Tan Thuan Dong and Queen’s Place, have been exited.

ASEANA PROPERTY PORTFOLIO AND VALUATIONS AS AT 31 MARCH 2013

Project Type NAV RNAV

Ratio Val. % GDV

(US$m) (US$m) basis owned (US$m)

Tiffani by i-ZEN, Kuala Lumpur Luxury condominiums 9.20 9.20 1.0 1 100 124

1 Mont’ Kiara by i-ZEN, Kuala Lumpur

Offices, tower and mall

4.95 4.95 1.0 1 100 166

Sandakan Harbour Square Retail mall and hotel 20.04 32.02 1.6 4 100 170

SENI Mont’ Kiara, Kuala Lumpur High end apartments 75.87 86.45 1.1 3 100 490

KL Sentral Office Towers & Hotel Office towers and a business hotel

0.83 6.67 8.0 3 40 256

Aloft' Kuala Lumpur Sentral Hotel Business hotel 3.24 45.06 13.9 4 100 132

The RuMa Hotel and Residences (Kia Peng project)

Boutique hotel and residences

11.12 11.12 1.0 1 70 197

Total Malaysia 125.25 195.47 1.6

1,535

Equity Invest. in Nam Long Inv. Corp.**

Private equity invest. 12.58 12.58 1 5 16.3 -

Internat. Hi-Tech Healthcare Park, HCMC

Healthcare plus comm./residential

18.90 51.75 2.7 4 66.8 670

Waterside Estates, District 9, HCMC

Villas and high rise apartments

8.88 8.88 1 1 55 100

Total Vietnam

40.36 73.21 1.8

770

Projects exited

Kota Kinabalu resort & residences, Sabah

Resort homes, hotel and villas

13.00 17.01 1.3 4 90.00* 170

Queen’s Place, Ho Chi Minh City (HCMC)

Residential, offices and retail mall

0.04 0.04 1.0 1 65 115

Tan Thuan Dong Project, HCMC# Apartments and comm. devel.

0.15 0.15 1.0 1 80 91

Total including projects exited 178.80 285.88 1.6

2,681

1 Projects at cost

2 Manager's estimate prior to accounts finalisation

3 Market value at 31 Dec using DCF methods

4 Market values based on residual/comparison/investment method of land value by international independent valuers

5 Fair value with reference to prevailing factors as at 31 March 2013 and including the economic and market conditions of the HOSE

* Average of 80% ownership interest for resort homes and 100% for resort hotel and villas

** Nam Long listed on the Ho Chi Minh Stock Exchange on 8 April 2013

# Project agreed to be terminated by jv partners, Aseana and Nam Long



4

RNAV measures considered more

realistic than historic...

RNAV measures are considered more realistic. The formula used for the RNAV of each

project SPV (or company) is the sum of:

Cash at company level + NAV/ market value of the project + net other assets/ liabilities

All taxes, corporate and property based, which in the first instance are removed by the

independent valuer, are later re-included by Aseana.

Figures in US$m NAV RNAV *

Total Portfolio 178.8 285.88

Cash and cash equivalents 0.09 0.09

Other assets and liabilities -2.15 -2.15

Total 176.74 283.82

On a per share basis (USȼ) 83.4 133.9

* At cost or measured by DCF or residual/comparative valuation methods.

NAV and RNAV as at 31 March 2013

...and 60% higher than NAV for the

active portfolio

The table on the previous page shows RNAV is 60% higher than NAV both for Malaysia

and overall. Six projects are at NAV, which is cost or on a fair value basis. Two others,

SENI Mont’ Kiara and the KL Sentral office towers and hotel are at market value using

DCF calculations carried out by international independent valuers on the estimated cash

flows. Those estimates exclude all taxes, both corporate and property based, but Aseana

then re-includes them. Those estimates were made on the 31 December 2012 but are

considered still to be valid.

Differences greatest for the Aloft

hotel and the IHTHP...

The Aloft hotel itself which, unlike the office towers, has yet to be sold, offers a more

striking difference between the NAV of US$3.24m and RNAV of US$45.06m. In the

hotel’s case, the latter valuation was again obtained by international independent valuers

using residual, investment or comparison method to arrive at market value. Ultimately, the

fairness of this depends on how close the comparator investment projects are. Apart from

the Aloft hotel, the method was also used for Sandakan Harbour Square, the Kota

Kinabalu Seafront resort and residences and the IHTHP. In the latter case, the RNAV of

US$51.75m is substantially above the NAV of US$18.90m. The dates of those valuations

are not stated but, in general, the independent valuers’ work for Aseana is done at the

end of each quarter unless otherwise stated.

...and Nam Long’s market value has

risen 40% since 31 March

Finally, in the case of the 16.3% effective ownership interest of its investment in Nam

Long, this would have simply been based on the market price quoted on the Ho Chi Minh

Stock Exchange on the 31 March, except that Nam long was not listed until the 8 April

Thus Aseana based a fair value of US$12.58m for its investment on the basis of the

prevailing economic and market conditions of the Stock Exchange. While the share price

subsequently declined after the listing, at the current share price of VND 23,800, Aseana’s

stake has risen 40% in value to US$17.61m. This is still a loss of US$4.44m on the

revalued amount of $22.05m set in December 2010, determined by reference to the price

paid by a new institutional investor in May 2010.



5

Payment by instalments an option to

facilitate sales of SENI Mont’ Kiara....

The table does not convey the time scale for development and sales which are better

shown in the table below. In Malaysia, the luxury condominiums listed as Tiffany by i-Zen

are already 96% sold but, given a sluggish high end residential property market, the

remaining fifteen units may take up to a further eighteen months to clear. Aseana has

decided to fully fit and furnish these to make them easier to sell. In the case of the higher

value units in SENI Mont’Kiara, 79% of these expensive apartments are now sold, a lower

percentage than expected after one major buyer for a parcel of units was unable to obtain

mortgage financing. Within the development, 127 units are unsold but 61 have been

reserved, 49 with one investment buyer. Given an average price of these high end units

(the smallest are 2,300 sq. ft.) in the range RM2m to RM3m, if 60 units were sold in 2013,

they could provide c.US$40m plus in revenue. The Company are looking at ways to

structure payment by instalments for block purchasers to ease potential financing

problems.

...and the former could provide most

of Aseana’s revenue in 2013

There is a final receipt of US$0.8m from 1 Mont’ Kiara expected at the end of the current

Q2 and Aseana is also now selling residential units and hotel suites off-plan from its

RuMa hotel and residences (RuMa) development. By the end of the year, the Company

will also start to make off-plan sales of its Waterside Estates residences in Ho Chi Minh

City, Vietnam, even though construction will not be completed until 2016. This is the same

construction time scale as for the RuMa project. The inference is that SENI Mont’ Kiara is

likely to be the main revenue driver in 2013.

...but revenues may take time to

build

That said, revenue may not be the key to measuring progress because it is not booked

until sales are finally completed. Meanwhile, stage payments or deposits may have been

made as reflected in the cash flow statement. What may adversely affect the reported

results, as has happened in the case of the Sandakan retail mall and hotel, are when

revenues may be insufficient to cover marketing, general administration and finance costs

due to slow build up of business or external events. Losses may then occur if other project

revenues are insufficient to fill the gap.

EXPECTED DATES OF FINAL PROJECT SALES AND CONSTRUCTION

2013 2014 2015 2016

Malaysia

Tiffani by i-ZEN

100% by year end

1 Mont ' Kiara by i-ZEN End of Q2 for owner-ship titles. Final payment due of US$0.8m

SENI Mont' Kiara 95% by end of Q4

Sandakan Harbour Square

Sale by end 2015

Aloft Kuala Lumpur Sentral Hotel

Sale by end 2014

The RuMa Hotel & Residences Sales off-plan now

Construction completed by year end

Vietnam

Internat. Hi-Tech Healthcare Park Sale of two plots and 49%

stake in City Hospital Sale in 2016

Waterside Estates Sales launch by Q4

Construction completed



6

MALAYSIA

Improved conditions but with more

properties in the market

The backdrop to Aseana’s development in the past year comprises three strands:

1. Generally benign economic conditions with the GDP growth rate edging up from 5.1%

in 2011 to 5.6% and the outlook is improving;

2. Stricter lending conditions imposed by banks to curb speculative purchasers of

residential properties;

3. A surplus of commercial office properties came on to the market. In 2012, 6.7m sq. ft.

In 27 separate developments with a take-up of only 3.3m, and a further 7m is

expected in 2013.

Economy driven by domestic

consumption and infrastructure

investments

Growth of the economy has been largely driven by consumption and infrastructure

investments including the important Economic Transformation Programme (ETP). This

incorporates 161 discrete projects totalling RM210bn (US$68.4bn) and aims to lift the

economy to high income status by 2020. Inward direct investment in 2012 declined to RM

29.1bn (US$9.52bn) from US$36.6bn in the previous year, but still sizeable in maintaining

the economic momentum. The year 2012 ended strongly with GDP increasing by 6.4%

although this has not continued into the current year. In Q1 GDP growth was down to

4.1%, the lowest level for more than three years due to lower exports (60% of the

economy). That said, Bank Negara Malaysia expects GDP growth of 5%-6% for 2013 with

a strong domestic economy driven by domestic consumption and investment. Uncertainty

has also been removed after the re-election of the Barisian Nasional coalition for a 57th

successive term of office, and fully committed to the infrastructure investment drive.

…which should be the pattern for

2013

Malaysia’s Bank Negara Malaysia, the central bank, confirms that the domestic economy

is healthy, underpinned by firm investment activity and private consumption. The latter is

supported by sustained income growth and stable labour markets while investment

activity is led by capital spending in both domestic sectors and infrastructure projects.

With inflation at 1.5% in Q1, though expected to rise later in the year, the central bank has

held the key Overnight Policy Rate at 3% following the Monetary Policy Committee

meeting held on 9 May.



7

Slower trends in residential property

markets…

The outlook for property developers in 2013 has been rendered uncertain for two

reasons:

Central bank action to curb speculation

Impact of new space in the market

Net residential yields have fallen below 2% p.a. in some areas but, for Aseana’s SENI

Mont’ Kiara, 5-6% is obtainable. This is the attraction for investors and the central bank

has targeted these, setting a LTV cap of 70% on loan applications for a third property or

beyond. From 1 January 2013, the Real Property Gains Tax (RPGT) has been raised

from 10% to 15% for properties disposed of within two years, but full exemption applies

for individuals and corporations if properties are held for over five years. In fact, the

number of property transactions has already started to slow as a result of rising prices,

particularly in the hot spots around Kuala Lumpur City Centre, Bangsar and Mont’ Kiara.

…for the owner occupier market The owner occupier market in the prime areas has also slowed as a result of price/income

ratios moving outside the long term average. Historically, the ratios of residential

properties to gross annual household incomes averaged 4 to 4.5 times, but since 2008

have risen well beyond this in the prime areas. Low interest rates have encouraged

demand but rising prices are now choking off some demand. Affordable housing, which is

generally considered to be units of less than 2,000 sq. ft. and priced at less than RM1m,

has not been given the same attention by developers who have favoured prestige

buildings and vertical blocks.

Sandakan Harbour developments… For Aseana, major developments in the past year included:

Harbour Mall Sandakan (HMS) and Four Points by Sheraton Sandakan Hotel (FPSS)

both commenced business. The 299 room hotel, operated by Starwood, opened for

business a year ago on 30 May 2012. The retail side comprising 129 shops (Phases 1

and 2 of the development) and a 200,000 sq. ft. retail mall (phases 3 and 4) opened for

trading in July 2012. The complex, the largest commercial development in the city, was

formally launched in October 2012. All the shops have been fully sold while 42% of the

retail space in the mall is now tenanted.

…has suffered a temporary

setback…

It was anticipated that the time to maturity for

both mall and hotel would be two years but

the process, which had been fairly slow

during the second half of 2012, has been put

back about six months by a local disturbance

in Sabah state. An armed ‘invasion’ by a

small band of 200 individuals occurred on 1

March 2013. Local media reported that

violence erupted between followers of Sulu

Sultan Jamalul Kiram III and the Malaysian

police and military in three locations on the

east coast of Sabah.



8

…but a full recovery is expected next

year

The intruders were pursuing a claim to Sabah staked by the Sulu Sultanate since 1962,

although Sabah is legally one of the fourteen states and territories of the independent

sovereign Malaysian Federation. The situation is under control by the authorities and,

while this problem may have been a ‘storm in a tea cup’, it did result in some cancellation

of bookings, occupancy declining to 26% at the end of April 2013 although now up to

36%, but Q2 revenues are unlikely to have covered expenses in this period. A 65%

occupancy rate might normally be achieved 12 months after opening but, with some

governments warning tourists about the dangers in visiting Sabah, 50% occupancy by

year end is now expected with full recovery not until 2014.

Sentral office towers sold but with

three year deferred payment

condition

Kuala Lumpur Sentral Office Towers and Aloft Hotel

Physical completion of the office towers was in December 2012 but the 482-room Aloft

Hotel slipped into January 2013. Neither is relevant to the results of 2012 and the hotel

opened for business only on 22 March 2013. This project is owned and developed by

Excellent Bonanza Sdn Bhd (EBSB) in which Aseana holds a 40% share interest and the

other 60% by the Malaysian Resources Corporation Berhad. The two office towers were

conditionally sold to a Korean pension fund for RM623m (US$196.6m) with a guaranteed

rental income written in to sale agreement. The buyer wants to defer payment for three

years, meaning that Aseana’s 40% share of the development profits, US$6.67m, would

be delayed, but the quid pro quo for this is dropping the guaranteed rental income clause.

Aloft hotel opened for business in

March 2013

In line with the original agreement, the hotel was

acquired by Aseana from EBSB in April 2013 for

RM217m (US$68.5m). The four star hotel,

managed by Starwood, opened for business in

March 2013. It had a first month average

occupancy rate of 42% based on opened rooms

(currently lower at 20% based on all 482 rooms)

but is expected to be c.50% by the first

anniversary. The hotel is in a prime position at the

heart of the capital and is likely to attract corporate

accounts. Planned sale is likely to be towards the

end of 2014. If the US$132m GDV is achieved,

with debt outstanding of US$87m, Aseana would

realise its RNAV of US$45m.

The RuMa off-plan sales launch The RuMa Hotel and Residences, Kula Lumpur

Originally the Kuala Lumpur Kia Peng City Centre project, this development comprises

200 high end apartments and a 253-room boutique hotel to be managed by Urban Resort

Concepts. Small apartments of 900-1,800 sq. ft., are pitched to young professionals

rather than families, unlike SENI Mont’ Kiara, and the largest units are expected to sell for

c.RM1.6m. Aseana has a 70% share interest in this project with the remainder owned by

Ireka Corporation Berhad. Construction of the project, which has a GDV of US$197m,

commenced in February 2013 and will not be physically completed until late 2016 or early

2017. A formal sales launch of apartments took place on 8 March 2013 to encourage

buying off-plan and Aseana has indicated that 70% of the units could be sold by year end.



9

VIETNAM

Credit tightening measures

restricted growth…

The Vietnam economy’s GDP grew at 5.0% in 2012, down from 5.9% in 2011 and the

lowest rate since 1999. The country averaged growth of 6.5% in 2006-2011 and 7.8% in

2001-06. The weaker performance has been ascribed to inefficiencies in state enterprises

and stricter lending conditions imposed by banks to dampen domestic demand and

inflationary pressures. In 2010 bank lending increased by 32% year-on-year, 14% in 2011

but only 6.5% in 2012 according to IMF statistics.

…but inward foreign investment is

healthy

Vietnam still attracted a higher level of foreign direct investment (FDI) pledges in 2012

compared with 2011. Pledged FDI amounted to US$16.3bn with US$10.3bn actually

disbursed. Nevertheless the weaker economy’s credit rating was cut by Moody’s due to

increased bad debts in the banking system and weakened state enterprises, both factors

limiting the scope for measures to boost growth.

The banking system’s bad debt ratio

is still high

Serious weaknesses in the banking system and the need to recapitalise banks have been

cited by the World Bank. In this difficult credit environment, the government stated in

December 2012 that the real estate market was stagnant with no signs of recovery, and

the number of insolvent businesses was rising, over 70% of companies ‘posting losses’ in

2012. That accounted for the banking sector’s bad debt ratio rising to c.4.5% of

outstanding loans although the Central Bank’s estimate is higher at 8.75%, one of the

highest bad debt levels in Southeast Asia. The outlook for 2013 is therefore uncertain

although, with an improving trade balance, GDP could grow by 5.5%.

…and this is limiting options to

boost the economy

More importantly, measures to deal with structural inefficiencies, to recapitalise the banks

and to clean up the sector through the creation of an asset management company,

effective 9 July, to acquire non-performing loans from lenders (those with bad debt ratios

above 3%) may improve the outlook for the longer term. Meanwhile, with inflation coming

under control, the central bank has been able to reduce the inter-bank discount rate from

13% at the start of the year to 5%.

Unhelpful conditions have led to

abandonment of two projects

In the context of these conditions, Aseana has decided to put on hold its involvement with

the mixed development, Queen’s Place in District 4 of HCMC. The Company has a 65%

share interest in the project which has suffered delays and Aseana is now looking to exit

the project. Aseana has also decided to terminate its involvement in the Tan Thuan Dong

residential development (in which it has an 80% share interest) in District 7 of the same

city. An official termination approval was received in March 2013 and final documentations

are underway to effect the termination of this project. That leaves only the IHTHP and

Waterside Estates in District 9 of HCMC.

City International Hospital to open in

June 2013…

International Hi-Tech Healthcare Park, Vietnam

This project is a planned mixed development close to the centre of Ho Chi Minh City

(HCMC) and the centre piece is the 320-bed City International Hospital (CIH) which was

structurally completed in March 2013. The hospital has undergone testing by its operator,

Parkway Pantai Limited, and if all operating approvals are in place, it is due to commence

operations in Q3 2013. Of the US$18.9m NAV, the bulk of this is accounted for by CIH.

http://topics.bloomberg.com/world-bank/



10

…in which a 49% share interest is in

negotiation for sale at an indicated

price of US$15.2m…

In financial terms, the hospital will not

breakeven until its third year of operation,

revenues being lower than the operating

and financial costs. This explains why

Aseana has taken the decision to sell a

49% share interest in CIH at an indicated

price of US$15.2m and the remainder

should be sold in 2016. Apart from the

hospital, the Healthcare park of an overall

91 acres is an operating asset divided into

20 plots of which nine are designated for

various medical uses.

…while two plots of land in the Park

have already been sold…

These will feature the latest medical technology, imaging equipment and other facilities

such as clinics. In June 2013, Aseana has sold two of these plots, one for use as an

oncology centre and the other for cardiology, but the RNAV for these two plots have not

been formally published. The remaining acreage is for affordable homes and retail use

supporting the Park. All plots are for sale or development depending on the opportunity.

…hence a good start has been made

in realising revenue from this

substantial asset

The whole healthcare park including the CIH has a GDV of US$670m but Aseana’s share

interest is 66.8%, the other 33.2% being held by Hoa Lam Group and associates. As at

the 31 March 2013, the RNAV for the healthcare park was US$51.75m after taking into

account the debt outstanding of US$20.63m (for land cost and working capital) and

US$27.23m (to part fund the hospital development). Since the end of Q1 therefore, a

good start has been made in realising revenue from this substantial asset.

High end residential market remains

weak…

Waterside Estates

Situated In District 9 of HCMC, this mixed

project of 37 villas (Phase 1) and 460 high

end apartments (Phase 2) is in the

construction phase. This is a joint

development of Aseana, with a 55% share

interest, and Nam Long Investment

Corporation with 45%.

…but build time is expected to be

three years

Completion time for building is three years with 2016 being the expected finishing time

Aseana will look to begin selling the villas from Q4 of the current year. The delay is to

allow for the current challenging conditions in the high end residential market. To fund the

development, Aseana has now secured a term loan of US$5.5m for the first phase.

Nam Long is a valued co-developer

in the HCMC market… Nam Long Investment Corporation

Aseana has a 16.3% equity share interest in Nam Long Investment Corporation, a

property development company in Vietnam with a leading position in the affordable ‘E-

home’ brand of apartments and focuses on building homes for the low to middle

income segment of the market. Nam Long has an extensive land bank totalling 1,384

acres in HCMC and its neighbouring provinces.



11

…whose share price is recovering

after taking a substantial hit

Nam Long was listed on the Ho Chi Minh Stock Exchange on 8 April 2013 at a share price

of VND27,000, valuing Nam Long at VND2,579bn (US$123.82m) with Aseana’s share

interest valued at US$20.18m. Aseana acquired its interest in Nam Long in June 2008 for

$17.14m and other holders include the founders and private equity funds of the company,

Vietnam Azalea Fund and Nam Viet Limited. Aseana's holding in Nam Long was

subsequently re-valued at $22.05m in December 2010 based on fair value determined by

reference to the price that a new institutional investor made in Nam Long in May 2010.

Aseana’s shares in Nam Long were valued at US$12.58m on 31 March 2013.

The intention behind the listing was to increase Nam Long’s liquidity and to gain access to

funds for the pursuit of real estate investment opportunities. That is likely to depend on the

state of the Vietnam property market which has marked time in the past year.

FINAL RESULTS FOR 2012

This section comments on the results for the year ended 31 December 2012.

Highlights of the Comprehensive Income Statement, shown overleaf, were:

Decline in revenue of 92% from US$281.1m to US$23.7m due to fewer sales of

completed units in SENI Mont’ Kiara;

Pre-tax loss of US$16.6m (2011: profit of US$33.1m) largely due to

i) operating losses of Four Points by Sheraton Sandakan Hotel and Harbour Mall

Sandakan, totalling US$8.2m;

ii) reduction in fair value of holding in Nam Long Investment Corporation. Of this

US$4.7m was recognized in the P&L accounts and a further US$4.8m in Other

Comprehensive Income;

Management fees down to US$3.8m (2011: US$4.0m) based on 2% of the quarterly

NAV values at the end of each quarter, payable in advance;

Increase in staff costs US$ 1.8m (2011: US$1.0m);

Increase in finance costs US$4.3m (2011: US$1.1m);

Net loss attributable to equity holders of the parent of US$16.8m (2011: net profit of

US$16.1m);

Basic and diluted loss per share of USȼ7.94 (2011: EPS of USȼ7.56);

A foreign exchange gain of US$0.5m (2011: loss of US$1.0m); a further US$3.4m

foreign currency translation difference was recognised in Other Comprehensive

Income.



12

STATEMENT OF COMPREHENSIVE INCOME Year ended 31st December (US$’000) 2011 2012

Revenue 281,142 23,732

Cost of sales (236,645) (21,459)

Gross profit/(loss) 44,497 2,273

Other income 2,146 7,051

Administrative expenses (2,053) (2,582)

Foreign exchange (loss)/gain (1,014) 524

Change in fair value of available-for-sale investments 0 (4,653)

Management fees (3,972) (3,799)

Marketing expenses (2,720) (2,164)

Other operating expenses (3,210) (9,389)

Operating profit/(loss) 33,674 (12,739)

Finance income 602 407

Finance costs (1,144) (4,299)

Profit/(loss) before tax 33,132 (16,631)

Tax (18,992) (1,798)

Profit/(loss) for the year 14,140 (18,429)

Attributable to owners of the Company 16,058 (16,839)

Non-controlling interests (1,918) (1,590)

Other comprehensive income net of tax:

Foreign currency translation gains/(losses) (3,364) 3,407

Change in fair value of available-for-sale investments 0 (4,828)

Total comprehensive income/(expense) for year 10,776 (19,850)

Attributable to owners of the Company 12,625 (18,419)

Non-controlling interests (1,849) (1,431)

Profit/(loss) per share US cents 7.56 (7.94)

BALANCE SHEET

The key features of the balance sheet were:

Decrease in available-for- sale assets (Nam Long to US$12.6m (2011: US$22.1m);

Intangible assets decreased to US$13.8m (2011: US$15.0m) due to goodwill

impairment associated with SENI Mont’ Kiara and Sandakan Harbour Square;

Decrease in cash and cash equivalents to US$16.8m (2011: US$32.6m) due to

operating costs of the Four Points by Sheraton Sandakan Hotel, Harbour Mall

Sandakan and the development of the City International Hospital;

Increase in net debt to US$126.2m (2011: US$72.0m), net gearing up to 64.2%

(2011: 34.7%). Net debt is offset by available-for-sale investments;

Decrease in total assets to US$409.7m (2011: US$415.1m) mainly due to the

reduction in the Nam Long investment;

Increase in total liabilities to US$213.0m (2011: US$207.5m) due to the issue of

US$4.9m of Medium term Notes (MTN) to fund Aloft.



13

The consolidated balance sheet is as shown below.

BALANCE SHEET

As at 31st December (US$'000) 2011 2012 Change

Property, plant and equipment 4,629 1,113 (3,516)

Available-for-sale investments 22,052 12,571 (9,481)

Intangible assets 15,003 13,845 (1,158)

Deferred tax assets/others 691 - (691)

Non-current assets 42,375 27,529 (14,846)

Inventories 285,006 350,822 65,816

Trade and other receivables 33,485 12,725 (20,760)

Amount due from associate/other 21,648 1,846 (19,802)

Cash and cash equivalents 32,610 16,752 (15,858)

Current assets 372,749 382,145 9,396

Total assets 415,124 409,674 (5,450)

Trade and other payables 74,338 56,764 (17,574)

Bank loans and borrowings 37,393 20,687 (16,706)

Amount due to non-controlling interests - 9,807 9,807

Current tax liabilities/deferred revenue 4,118 2,097 (2,021)

Current liabilities 115,849 89,355 (26,494)

Amount due to non-controlling interests 3,006 - (3,006)

Bank term loans 12,889 40,497 27,608

Medium term notes 75,734 83,175 7,441

Non-current liabilities 91,629 123,672 32,043

Total liabilities 207,478 213,027 5,549

Shareholders' funds = Net assets 207,646 196,647 (10,999)

Non-controlling interests 4,276 13,063 8,787

Equity of parent company 203,370 183,584 (19,786)

Project debt finance not a cause for

concern

The increase in net debt and gearing is not a cause for concern. There are no covenants

to breach and the projects are separately funded, albeit in some cases with Aseana

providing corporate guarantees. Two projects are financed in stages by draw down of the

MTN loan facility originally set up in November 2011, and the other projects from

syndicated term loan facilities. The borrowings, which are secured on land held for

property development and work-in-progress, are denominated in Malaysian Ringgit, US

dollars and Vietnam Dong. The table overleaf shows the details. It is expected that the

debts will be fully repaid out of the sale proceeds from the projects.

As at the 31 December 2012, the amounts outstanding under the MTN totaled US$85.0m

with maturities extending out to December 2015. The weighted average interest rate was

5.42% per annum. The effective interest rate for the other bank loans and hire purchase

arrangement for the year 2012 ranged from 5.20% p.a. to 23% p.a.



14

ASEANA - PROJECT DEBT AS AT 31 MARCH 2013

Project Total debt limit

(US$m) Unutilised

debt (US$m) Utilised (US$m)

Tiffany by i-ZEN - - Fully paid

SENI Mont' Kiara 6.8 - 6.8

The RuMa hotel and residences Term loan plus other

37.3 16.2 21.1

Aloft Kuala Lumpur Sentral Hotel MTN 87.0 74.3 12.7

Sandakan Harbour Square MTN 78.8 - 78.8

International Hi Tech Healthcare Park Term loan 20.6 - 20.6

City International Hospital Term loan 43.3 16.1 27.2

Waterside Estates Term loan 5.5 5.5 -

Total for projects 279.3 112.1 167.2

Term loan facility of US$5.5m funding for Waterside Estates drawn after period end

CASH FLOW

The cash flow statement is shown overleaf. The key points were:

Large swing in the operating line before working capital movement, from US$36.6m

to a deficit of US$7.6m due to the weaker sales performance in 2012;

Within working capital, inventories increased to US$350.8m (2011: US$285.0m)

mainly as a result of the stock of completed units increasing to US$209.0m (2011:

US$113.5m);

Net cash used in operating activities increased from US$56.8m to US$64.6m;

Net cash generated from investing activities was positive at US$29.3m due to net

disposals of available-for-sale financial instruments compared with net purchases in

2011;

Financing activities produced a cash surplus of US$16.8m compared with a deficit of

US$39.0m in 2011. Loan draw down exceeded repayments in 2012, the reverse

being the case in 2011;

Repurchase of 500,000 shares between 4 and 24 January at an average price of

USȼ34.93 costing US$175,000 held as treasury shares;

No dividend paid in 2012 compared with the interim dividend of US$0.01 per share

paid in 2011;

Overall net reduction in cash and cash equivalents of US$18.6m in 2012 compared

with a reduction of US$115.1m in the previous year;

Cash and cash equivalents at year end down to US$5.6m from US$22.8m in 2011.



15

CASH FLOW

Year ended 31st December (US$'000) 2011 2012

Net (loss)/profit before tax 33,132 (16,631)

Net finance income 542 3,892

Depreciation of property, plant and equipment 142 190

Impairments and write-offs 2,746 833

Change in fair value of available-for-sale fin. instruments (26) 4,734

Unrealised foreign exchange (gain)/loss 20 (642)

Op profit/(loss) before working cap. changes 36,556 (7,624)

Working capital movement (79,597) (48,057)

Interest and tax (13,721) (8,933)

Cash flows from /(used in) operating activities (56,762) (64,614)

Acquisitions from non-controlling interests 1,782 9,347

Fixed assets acquired net of disposals (591) (278)

Net purchases of held-for-trading financial instruments (21,358) 19,933

Finance income received/advances/repayments/other 862 290

Net cash flows from investing activities (19,305) 29,292

Repayment of borrowings (131,822) (12,080)

Drawdown of borrowings 104,732 30,390

Dividend paid (2,125) --

Deposits placed in banks (9,799) (1,371)

Share buy back - (175)

Net cash flows from financing activities (39,014) 16,764

Cash and cash equivalents at beginning of period 140,929 22,811

Effect of changes in exchange rates (3,037) 1,329

Net increase/(decrease) in cash and cash equivalents (115,081) (18,558)

Cash and cash equivalents at end of period 22,811 5,582

SUMMARY AND CONCLUSIONS

Aseana has three operating assets, a hotel and retail mall at Sandakan, another hotel

in Kuala Lumpur Sentral and the City International Hospital in HCMC. Three main

residential assets are at SENI Mont’ Kiara and RuMa in Kula Lumpur and Waterside

Estates in HCMC. All assets are being developed for sale with the likely time scale

stretching beyond 2015, the date when shareholders must vote on Aseana’s

continuation. Thus the future of Aseana beyond this point remains unclear.

Q1 results marked down NAV, RNAV, revenue and profit. Prospects appear stronger

in H2 as economic and market conditions are improving, more obviously in Malaysia

than Vietnam. This should facilitate sales of SENI Mont’ Kiara and RuMa. Aseana is

seeking to accelerate remaining residential sales by fully fitting out properties.



16

On the financial front, net debt and gearing have edged up at the end of Q1 (net

debt/equity 79.04%) with the funding of the Aloft hotel and the CIH. Management

does not perceive this as a problem. There are no bank covenants to breach in

respect of the overall debt to equity ratio of the Company. Aseana operates a

disciplined cash management policy tailoring development funding requirements to

receipts from asset sales as appropriate although has very adequate unutilised debt

facilities in place totalling US$112.1m (as at 31 March 2013) to use as required. It is

not always possible to foresee accurately the dates for completion of asset disposals.

In the near term, Aseana has cash and cash equivalents, net of overdrafts, of

US$15.9m, plus available-for-sale investments.

COMPANY HISTORY & OVERVIEW

Main market listing in April 2007 Aseana Properties Limited (‘ASPL’)

was incorporated in Jersey in early

2007 to invest in property

development projects in Malaysia

and Vietnam. It was listed on the

Main Market of the London Stock

Exchange in April 2007 via a

placing of 162 million shares at

US$1 per share.

Target properties are residential,

commercial and hospitality

Aseana’s original business model

set out its intention to acquire,

develop and redevelop upscale

residential, commercial and

hospitality projects. It was also

prepared to invest both as the sole

principal and, where appropriate, in

joint arrangements with third

parties, but retaining management

control. These aims have since

been modified so that no new

investments are undertaken, only

reinvestment in existing projects.

Manager is part of Malaysian listed Ireka

Group Ireka Development Management Sdn Bhd (IDM) is the Property Manager with day-to-day

management responsibility. It is a wholly-owned subsidiary of Ireka Corporation Berhad

(ICB), a company listed on the Bursa Malaysia (formerly the Kuala Lumpur Stock

Exchange) since 1993 and which has over 40 years of construction and property

development experience. ICB acquired 48.9 million shares or 19.56% in Aseana in

exchange for the Company’s first five properties at listing. In addition to managing the

property portfolio, IDM has had responsibility for the introduction and facilitation of new

investment opportunities. A quarterly management fee of 2% p.a. of Aseana’s NAV is

payable for these activities.



17

DIRECTORS ASEANA PROPERTIES

NON-EXECUTIVE

CHAIRMAN

Mohammed Azlan bin Hashim 1 2

Azlan was appointed NEC in March 2007. Currently, Azlan is also NEC of Parkway Pantai Limited,

Asiasons Capital Limited and Chaswood Resources Holdings Ltd, all based in Singapore. He is also

a Non-Executive Director of Acibadem Saglik Hizmetleri Ve Ticaret A.S., a company listed in

Istanbul. In Malaysia, Azlan serves as Chairman of several listed companies on Bursa Malaysia

Securities Berhad, including D&O Green Technologies Berhad and SILK Holdings Berhad. He also

serves as a Board Member of various government related organisations.

NON-EXECUTIVE

DIRECTOR

Christopher Henry Lovell 1

Mr Lovell is lawyer who has practised in Jersey since 1979. He was a partner in Theodore Goddard

between 1983 and 1993 before setting up his own legal practice in Jersey. In 2000 he was one of the

founding principals of Channel House Trustees Limited, a Jersey regulated trust company, which

was acquired by Capita Group plc in 2005, when he became a director of Capita’s Jersey regulated

trust company. He joined Governance Partners LP, an independent corporate governance practice,

on his retirement from Capita in January 2010. His other current NED positions include Public

Service Properties Investments Limited and a number of EMAC Illyrian property funds listed on the

Channel Islands Stock Exchange.

NON-EXECUTIVE

DIRECTOR

David Harris 2 3

Mr Harris is currently Chief Executive of InvaTrust Consultancy Ltd, a company that specialises in the

provision of investment marketing services to the Financial Services Industry in both the UK and

Europe. He was formerly Managing Director of Chantrey Financial Management Ltd, an investment

and fund management company linked to Chartered Accountants, Chantrey Vellacott. From 1995 to

2000 he was Director of the Association of Investment Companies overseeing marketing and

technical training. He is currently a non-executive director of a number of quoted companies in the

UK including Character Group plc, Small Companies Dividend Trust plc, F&C Managed Portfolio

Trust plc and Manchester & London Investment Trust plc.

NON-EXECUTIVE

DIRECTOR

Ismail Shahudin 1 3

Ismail was appointed to the Board of Aseana in March 2007. Ismail is chairman of Maybank Islamic

Berhad, Opus Group Berhad and also serves as Independent Non-Executive board member of

several Malaysia listed companies including Malayan Banking Berhad (Malaysia's largest bank),

Nadayu Properties Berhad, EP Manufacturing Berhad, UEM Group Berhad which is a non-listed

wholly-owned subsidiary of Khazanah Nasional Berhad, one of the Malaysia government's

investment arms. He is also a Non-Independent Non-Executive Director of New Zealand listed Opus

International Consultants Limited and is a director of MCB Bank Limited in Pakistan.

NON-EXECUTIVE

DIRECTOR

John Lynton Jones 2 3

Lynton is chairman of Bourse Consult, a consultancy that advises clients on initiatives relating to

exchange trading, regulation, clearing and settlement. He has an extensive background as a chief

executive of several exchanges in London, including the International Petroleum Exchange, the OM

London Exchange and Nasdaq International (whose operations he set up in Europe in the late

1980s). He was a board member of London's Futures and Options Association, the London Clearing

House and was the founding chairman of the Dubai International Financial Exchange (now known as

Nasdaq Dubai). He is an advisor to the City of London Corporation.

NON-EXECUTIVE

DIRECTOR

Gerald Ong Chong Keng 2

Gerald is the CEO of Singapore based PrimePartners Corporate Finance Group and has over 20

years of corporate finance related experience at various financial institutions providing a wide variety

of services such as advisory, M&A activities and fund raising exercises.

1 – Audit Committee 2 – Nomination Committee 3 – Remuneration Committee



18

MANAGEMENT TEAM IREKA DEVELOPMENT MANAGEMENT

CHIEF EXECUTIVE OFFICER Lai Voon Hon

He is the CEO of IDM and Executive Director of Ireka Corporation which he joined in 1994 as the

Group General Manager. He was appointed to the Board of Directors in 1996 and is also a Director

of several subsidiaries within the Ireka Group. An architect by profession, he has practiced in

London, Hong Kong and Malaysia prior to joining Ireka. He is a registered Professional Architect with

the Board of Architects, Malaysia.

CHIEF FINANCIAL OFFICER Lai Voon Huey Monica

She is the CFO of IDM and Executive Director of Ireka Corporation which she joined as the Group

Financial Controller in 1993. She was appointed to the Board of Directors in 1999 and is also a

Director of several subsidiaries within the Ireka Group. She worked for Ernst & Young in England and

KPMG in Hong Kong prior to joining Ireka. She is a fellow member of several institutes that include

the Institute of Chartered Accountants, England and Wales; Chartered Accountants, Malaysia; and

the Malaysian Institute of Taxation.

CHIEF INVESTMENT OFFICER Chan Chee Kian

He is the CIO of IDM. He was previously a management and strategy consultant with Accenture in

Singapore, Bangkok and Kuala Lumpur where he advised a broad range of clients including large

multi-national companies, Government-linked agencies and local enterprises throughout the Asia

Pacific region on strategic and operational issues. He graduated from the University of Bristol in

England with First Class Honours in Civil Engineering.

CHIEF OPERATING OFFICER Beh Chun Chong

He is the COO of IDM. A civil engineer by profession, he was involved in the construction and project

management of some high profile projects such as Kuala Lumpur International Airport, the Empire

Hotel of Brunei Darussalam and Kiaraville luxury condominiums. He graduated from the Universiti

Teknologi Malaysia with an honours degree in Civil Engineering and is a member of the Board of

Engineers, Malaysia.



19

ASEANA INFORMATION

Registered 12 Castle Street

Address St Helier

Jersey JE2 3RT

Channel Islands

Website www.aseanaproperties.com

IDM INFORMATION

Head office Level 18, Wisma Mont’ Kiara

No 1 Jalan Kiara, Mont’ Kiara

50480 Kuala Lumpur

Malaysia

Telephone +603 6411 6388

LEADING SHAREHOLDERS

As at 13 June 2013 %

Ireka Corporation Berhad 23.07

Legacy Essence Limited 18.43

Henderson Global Investors 12.38

LIM Advisors 11.37

SIX Securities Services 10.45

Funds managed by Cayenne Asset Mgt 6.13

Dr Thong Kok Cheong 5.23

Charlemagne Capital 2.97

Source: Argus Vickers

CITY INSIGHTS CONTACTS

Tony Cooper

[email protected]

Chris Munden

[email protected]

City Insights Limited 131 Finsbury Pavement, London EC2A 1NT Tel: +44 (0) 20 7920 3190

INCOME STATEMENT

Year ended 31st Dec (Fig's in US$'000) 2010 2011 2012

Revenue 179,345 281,142 23,732

Cost of sales (177,184) (236,645) (21,459)

Gross profit/(loss) 2,161 44,497 2,273

Other income 679 2,146 7,051

Administrative expenses (1,017) (2,053) (2,582)

Change in fair value of available-for-sale invests - - (4,653)

Foreign exchange (loss)/gain (670) (1,014) 524

Management fees (3,994) (3,972) (3,799)

Other operating expenses (12,852) (5,930) (11,553)

Operating profit/(loss) (15,693) 33,674 (12,739)

Finance income 794 602 407

Finance costs (534) (1,144) (4,299)

Profit/(loss) before tax (15,433) 33,132 (16,631)

Tax (5,795) (18,992) (1,798)

Profit/(loss) after tax (21,228) 14,140 (18,429)

BALANCE SHEET

Year ended 31st December (Fig's in US$'000) 2010 2011 2012

Property, plant and equipment 4,497 4,629 1,113

Available-for-sale investments 22,052 22,052 12,571

Intangible assets 17,174 15,003 13,845

Deferred tax assets/others 19,400 691 -

Non-current assets 63,123 42,375 27,529

Inventories 431,473 285,006 350,822

Trade and other receivables 31,499 33,485 12,725

Amount due from associate/other 382 21,648 1,846

Cash and cash equivalents 150,385 32,610 16,752

Current assets 613,739 372,749 382,145

Total assets 676,862 415,124 409,674

Trade and other payables 112,940 74,338 56,764

Bank loans and borrowings 68,463 37,393 20,687

Amount due to non-controlling interests - - 9,807

Medium term notes 72,923 - -

Current tax liabilities/deferred revenue 201,099 4,118 2,097

Current liabilities 455,425 115,849 89,355

Amount due to non-controlling interests 3,048 3,006 -

Bank term loans 21,176 12,889 40,497

Medium term notes - 75,734 83,175

Non-current liabilities 24,224 91,629 123,672

Total liabilities 479,649 207,478 213,027

Shareholders' funds = Net assets 197,213 207,646 196,647

Non-controlling interests 4,346 4,276 13,063

Equity of parent company 192,867 203,370 183,584

CASH FLOW

Year ended 31st December (Fig's in US$'000) 2010 2011 2012

Op profit/(loss) before working cap. changes (16,194) 36,556 (7,624)

Working capital movement 94,947 (79,597) (48,057)

Interest and tax (12,372) (13,721) (8,933)

Cash flows from /(used in) operating activities 66,381 (56,762) (64,614)

Acquisitions from non-controlling interests (18) 1,782 9,347

Fixed assets acquired net of disposals (3,556) (591) (278)

Net purchases of held-for-trading financial instruments 0 (21,358) 19,933

Finance income received/advances/repayments/other 1,197 862 290

Net cash flows from investing activities (2,377) (19,305) 29,292

Repayment of borrowings (44,763) (131,822) (12,080)

Drawdown of borrowings 72,590 104,732 30,390

Dividend paid - (2,125) --

Deposits placed in banks - (9,799) (1,371)

Share buy back - - (175)

Net cash flows from financing activities 27,827 (39,014) 16,764

Cash and cash equivalents at beginning of period 46,996 140,929 22,811

Effect of changes in exchange rates 2,102 (3,037) 1,329

Net increase/(decrease) in cash and cash equivalents 91,831 (115,081) (18,558)

Cash and cash equivalents at end of period 140,929 22,811 5,582 This document is designed to 'inform and educate' and is intended for professional advisers. The information contained in this document has been compiled from sources believed to be reliable, but no warranty, expressed or implied, is given that the information is complete or accurate or that it is fit for a particular purpose. All such warranties are expressly disclaimed and excluded. Any opinions, recommendations and forecasts referred to may have been superseded and thus not necessarily be the current opinions, recommendations and forecasts of the relevant analyst/broker.

This document is not an offer to buy or sell, or a solicitation of an offer to buy or sell, the securities mentioned. Any recommendations referred to do not necessarily imply the suitability of particular securities for individual situations. The value of securities and the income from them may fluctuate. It should be remembered that past performance is not necessarily a guide to

future performance and that some companies may be pre-profits and/or pre-revenues, and therefore are high risk situations. You are strongly advised to have a professional adviser and to contact him/her before entering into any contract to buy or sell any security.

By reading this document, I confirm that I have read and understand the above, that I am a professional investment adviser, and that I shall not hold City Insights or any of its members and

connected companies liable for any loss that I may sustain should I decide to buy or sell any of the mentioned securities.

http://www.aseanaproperties.com/

Documents

ASEANA PROPERTIES · 2013 to 16 May 2013 on 17 May. At the same time, the Company issued its Quarterly Investor Update for the quarter ended 31 March 2013. This showed small changes