swh investor presentation feb2015 final20investor...investor relations kristen humphrey 8 king...
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Sunwah Interna,onal (TSX: SWH)
Investor Presenta,on – February 2015
Execu&ve Summary
v TSX-listed global financial services provider (TSX: SWH).
v Hong Kong based, 6 offices throughout Asia and in Toronto.
v Financial services arm of major international conglomerate.
v Uniting quality businesses with Asian capital, opportunities.
v Expert strategic/institutional investor and partner sourcing.
v HKEx-listed subsidiary is one of HK’s most active brokerages.
v Publicly listed in Canada for 20 years.
v Active in Asia for almost 25 years.
v Undervalued share price.
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v Trading at a significant discount to NAV per share of $0.46.
v Capitalizing on new regulations and initiatives to stimulate capital and equity market activity in Asia.
v Poised to benefit from significant steps in opening China’s financial markets (e.g. Shanghai Hong Kong Stock Connect).
v Strengthened capital base through subsidiary rights offering.
v Highly reputable Sunwah brand credibility and connections.
v Deep-rooted value, unique positioning.
Investment Highlights 3
v Majority shareholder (66%) is highly reputable Sunwah Group.
v Founded in 1957; Hong Kong based, operations worldwide.
v Unparalleled, high-level business and government affiliations.
v Prominent brand in Asia.
v Over 100 subsidiaries worldwide.
v Employing 4,000+ globally.
v Instrumental in Vietnam’s development as one of its major foreign investors.
v Led by esteemed Dr. Jonathan Choi.
Sunwah Group 4
SWH Corporate Structure
Sunwah Group Other Investors
Sunwah Interna,onal (TSX: SWH)
Strategic Investment Group
Capital Markets Group
Asset Management Group
Sunwah Kingsway (HKEx: 00188) Kingsway Canada
66% 34%
52% 100%
§ Broker Dealer § Equity Capital Markets § Corporate Finance § Sales & Trading § Research
§ Corporate Advisory Services § Financial Transaction Advisory Services
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v Refreshed business model, newly diversified income base.
v Primary focus within our Capital Markets Group.
v Added Asset Management and Strategic Investment services.
v Leveraging unparalleled connections to identify and advance uniquely positioned, high quality assets and opportunities.
v Key and evolving areas of focus for SWH include tapping: § Sizeable investment flows from Europe, the Middle East,
and NA to the rapidly growing SE Asian markets § Increasing capital flows from Asia to international markets
v Specializing in real estate, infrastructure, special situations.
Core Business 6
v Capital Markets Group led by Sunwah Kingsway Capital.
v $95 million in equity capital; seasoned management.
v Newly positioned to capture greater deal volume.
v Focused on Asian growth – Nearer term: Southeast Asia; long-term: China (with RMB internationalization).
v Offices in Hong Kong, Beijing, Shanghai, Shenzhen, Toronto.
v Award-winning brokerage operations; premium financials solutions (corporate finance, sales, trading, research).
v Strong international and domestic (HK) distribution.
v Listed on the HKEx – stock code: 00188.
Capital Markets Group 7
v Sunwah Group credibility and network.
v Track record as one of Hong Kong’s most active boutique brokerage houses.
v Robust client investor list and governmental relations.
v Experience: Participation in some of HK’s largest, most successful domestic investment banking transactions.
v Established base of institutional investors in Asia that is unmatched by our domestic peers.
v Experts in Asian diversification: Strong Asian roots and international reach.
Compe&&ve Advantage 8
The Opportunity 9
v SWH’s Net Asset Value (NAV) is $43 M.
v Trading at a significant discount to its NAV due mainly to: § A lack of share liquidity § An underdeveloped public/investment profile
v New initiatives underway to increase share price/liquidity.
As at 30 Sept. 2014US$'000
Current Assets 83,938 Non-Current Assets 41,576 TOTAL ASSETS 125,514
Current Liabilities 42,491 Non-Current Liabilities 1 Shareholders' Equity 42,521 Non-Controlling Interests 40,501 TOTAL EQUITY & LIABILITIES 125,514
Net Asset Value Per Share = $0.46
Share Price
CAD$0.185
Shares Outstanding (Basic) 93,139,927
Deferred Share Units 1,442,428
Fully – Diluted Shares 94,582,355
Stock Op&ons Outstanding (exercisable at CAD$0.55)
5,325,500
Market Cap (Basic) CAD$17,230,886
Note: Share data current as of February 2, 2015.
Capital Structure 10
Financial Summary
Selected Financial Information from Annual Report/Quarterly Report
Three Months Ended Year Ended
Sept 30, 2014 Jun 30, 2014 Jun 30, 2013
(US$’000) (US$’000) (US$’000)
Revenue from services and other income 3,577 17,086 12,837
Trading income/(loss) (657) 5,302 1,563
Total revenue 2,920 22,388 14,400
Income/(loss) for the period to owners (830) (571) (3,467)
Total current assets 83,938 74,476 54,568
Total long-term liabilities (1) (5) (10,564)
(US$) (US$) (US$)
Net income/(loss) (on a per-share basis) (0.0089) (0.0062) (0.0375)
Net income/(loss) (on a diluted per-share basis) N/A N/A N/A
Cash dividends declared per common share N/A N/A N/A
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v Currently trading at a significant discount to NAV.
v SWH share value poised for growth due to: § Enhanced business model, stronger capital base § Improving Asian markets; schemes to further stimulate
v Newly diversified income base: § Investment portfolio diversification § Boutique asset management firm acquisition § Moving away from natural resources, China § Strengthened Capital Markets Group
v Launching initiatives to increase shareholder value: § Generate liquidity and trading momentum § Attract new investors
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Value Proposi&on 12
Appendix A
Dr. Jonathan Choi, BBS, JP (SWH Chairman, Executive Director; Sunwah Group Founder, CEO and Chairman): A highly esteemed philanthropist and businessman holding numerous high profile public positions. A Member of the National Committee of the Chinese People's Political Consultative Conference of the People's Republic of China with over 30 years’ experience in the food industry, real estate development and international trade; 15+ years in technology and finance.
Douglas Betts (President and CEO): 25 years experience in international business transactions with a focus on Asia; strong management, investment and advisory experience, particularly in infrastructure, natural resources and financial services.
Michael Choi (Deputy Chairman, Director, Sunwah Kingsway CEO): Extensive experience in the financing activities of corporate and property mortgage, real estate development and property investment. A member of the Chinese People’s Political Consultative Conference of the Hubei Province, PRC.
Robert Fung (Independent Director): One of Canada’s leading investment bankers in the natural resources industry for over three decades. A track record that includes numerous high profile financial advisory roles.
Patty Shao: Over 7 years of corporate finance experience with strong research and analytic background in the oil and gas sector in both Asia and North America.
Key Team Members 14
Appendix B
§ Asia saw the highest growth in private wealth in 2013 globally, increasing 30.5% to $37.0 trillion.
§ Asia’s projected growth over the next 5 years is the highest among all regions.
§ In 2008, Asia had 50% less private wealth than North America. It has since closed this gap by half.
§ By 2018 Asia Pacific is expected to surpass North America as the largest wealth market.
Source: BCG Global Wealth Market-Sizing Database, 2014; BCG Global Wealth 2014: Riding a Wave of Growth, June 2014
§ Estimates soon have Asia Pacific overtaking Western Europe as the 2nd wealthiest region.
§ Asia-Pacific and its new wealth will account for about half of total global growth through 2018.
§ Old world growth will primarily be driven by return on existing assets as opposed to new wealth creation.
The Asia Opportunity 16
The China Opportunity
Source: BCG Global Wealth Market-Sizing Database, 2014; BCG Global Wealth 2014: Riding a Wave of Growth, June 2014
§ China’s remarkable 49.2% increase is private wealth was driven mainly by products such as PRC trusts (up 82%).
§ China is projected to soon overtake Western Europe as the world’s second wealthiest nation, a position expected to be well cemented by 2018.
§ The United States, China and Japan had the most millionaires in 2013.
§ China surpassed Japan in 2013.
§ The U.S. had the largest number of billionaires in 2013 but the highest density of billionaire households was in Hong Kong (16.8 per million).
§ Robust wealth creation in China resulted in a 60% increase in millionaire households from 1.5 million in 2012 to 2.4 million in 2013.
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Appendix C
v Hong Kong based flagship subsidiary (HKEx: 00188); 24-year track record.
v Focuses on mid-market enterprises, corporate finance, institutional sales, trading, brokerage.
v Consistent historical top-ranking as one of Hong Kong’s best local brokerages.
v Participation in some of Hong Kong’s most lucrative investment banking transactions to date.
v Extensive domestic distribution network; capabilities and account relationships throughout Asia.
v Research department currently covering 40+ companies.
Sunwah Kingsway Summary 19
Kingsway Canada Summary 20
v Supporting Sunwah International’s focus on the global, particularly North American, marketplace.
v Quality corporate advisory services: − General advisory services − Mergers & acquisitions
v Leveraging unparalleled connections to uncover and advance uniquely positioned, high quality assets and projects.
v Highly reputable management with wide industry experience and significant resources and mining expertise.
v Robust governmental and business relationships.
v Strong track records in merchant and investment banking, government, and private equity.
SUNWAH INTERNATIONAL LTD. c/o Sunwah International Financial Services Ltd. Unit A, 26/F, United Centre 95 Queensway Hong Kong TEL: 852 2989 9321; [email protected]
INVESTOR RELATIONS
Kristen Humphrey 8 King Street East, Suite 1200 Toronto, ON Canada TEL: 416-888-2323 [email protected]
Contact Informa&on
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