VIBRANT GROUP

LIMITED20 June 2014

Disclaimer and Declaration

• The objective of the presentation is for educational

purposes. The full content of the presentation is for

illustration purposes only and should not be used as

investment recommendations. AB Maximus and its

presenters are not responsible for all investment activities

conducted by the participants and cannot be held liable

for any investment loss.

• The company and presenters may have personal interest

in the particular shares presented.

Content

• Company Background

• Industry Overview

• Valuation

• Risk

Company Background

• Vibrant Group Limited (formerly known as Freight Links Express Holdings Limited) is a leading logistics, real estate and financial services group headquartered in Singapore. It offers a comprehensive range of integrated logistics services including international freight forwarding, chemical storage and logistics, warehousing & distribution and record management. The Group is also engaged in real estate business in property management, development and investment.

• Vibrant Group was founded in 1981 as Freight Links Express. It was then listed on SESDAQ in 1995 before moving on to SGX Main board in 1997

Source: Vibrant Group Website

Company Performance

Source: Vibrant Group Annual Report & Yahoo Finance

Business Units

Vibrant Group

International

Freight Forwarding

Warehousing &

Logistics

Chemical Storage

& Logistics

Financial Services

• Provision of international freight forwarding

services

• Provision of distribution, storage and

warehousing services

• Provision of records management &

document storage

• Provision of chemical logistics

• Transportation and warehousing activities

• Provision of real estate fund and property

management services

Source: Vibrant Group Annual Report

Business Units – International Freight

Forwarding• Market Leader in Non Vessel Operating

Common Carrier (NVOCC) business

• Offices in Malaysia, Thailand, Hong Kong,

Korea, China and Dubai

• 120 agents and reach of more than 600

destination worldwide

• Services: Container consolidation,

Container Freight Station operations,

Ocean and air freight services,

transshipment & customs clearance

Source: Vibrant Group Website

Business Units – Warehousing & Logistics

• Rental of warehouse spaces

• Service provider for document storage

• Project Logistics

• Movement of oversized and heavy lift cargoes

and equipment

• Multi-modal transportation – ocean, air, land

and rail

• Provision of warehousing and insurance

services

• Customs clearance and trade documentation

Source: Vibrant Group Website

Business Units – Chemical Storage and

Logistics• Handles both hazardous and non-

hazardous chemical and petrochemical

• Operates in Singapore, West Malaysia,

Indonesia and Thailand

• Services: Warehousing and storage for

dangerous goods and non dangerous

goods, drumming, container haulage and

package goods transportation

Source: Vibrant Group Website

Business Units – Financial Services

• Management of Sabana Shari’ah Compliant Industrial Real Estate Investment Trust (REIT)• Total assets exceeding S$1.0 billion

• Listed on SGX-ST on 26 November 2010

• Sentosa Asian Credit Fund• A fund management company that derives its

income from management fees for investment management services

• Sinolink Financial Leasing Co. Ltd• Financial leasing services include hire purchase,

equipment financing, shipping loans, working capital loans, letters of credit, project financing and receivables financing to potential customers

Source: Vibrant Group Website

Segmental Performance

Freight Forwarding

37%

Warehousing and Logistics

25%

Chemical Storage and

Logistics33%

Management Fees

Business5%

Other Services

0%

Revenue

Freight Forwarding

9%

Warehousing and Logistics

26%

Chemical Storage and

Logistics5%

Management Fees

Business9%

Other Services

51%

Pretax Profit

Source: Vibrant Group Website

Segmental Historical Contribution

Freight forwarding

Warehousing and logistics

Chemical storage and

logistics

Management fees business

Other services

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

FY2009 FY2010 FY2011 FY2012 FY2013

Revenue

Freight forwarding

Warehousing and logistics

Chemical storage and

logistics

Management fees business

Other services

-15,000

-10,000

-5,000

0

5,000

10,000

15,000

20,000

25,000

FY2009 FY2010 FY2011 FY2012 FY2013

Pretax Profit

Source: Vibrant Group Website

Geographical Contribution

Source: Vibrant Group Annual Report

Singapore41%

ASEAN (ex. Singapore)

19%

Asia (ex. ASEAN)24%

America3%

Oceania3%

Europe5%

Middle East3%

Others2%

Revenue

Industry Overview: Global Road Freight

Industry Overview: Asia-Pac Road Freight

Market Data

Last Done 0.103

52wk Range: 0.09-0.15

Volume 1,111,000

Avg Volume (3 mnths) 3,637,560

Market Cap 259.22 M

Valuation – Discounted Cash-Flow Model

Risk-Free Rate: 2.0%

Market Risk Premium: 7.0%

Beta: 0.71

Cost of Equity: 7.0%

Long-Term Growth Rate: 2%

Forecasted Income StatementIncome Statement (S$ '000) Forecast

For Year Ending:

Apr-14 Apr-15 Apr-16 Apr-17 Apr-18 Apr-19 Apr-20

Freight Forwarding 68,084 61,276 58,212 55,301 54,195 54,195 55,279

Warehouse and Logistics 44,837 56,046 67,256 77,344 85,078 89,332 91,119

Chemical Storage and Logistics 59,720 68,678 75,546 79,323 83,290 85,788 87,504

Management Fees Business 8,507 8,932 9,200 9,384 9,572 9,763 9,959

Other Services Rendered 0 0 0 0 0 0 0

Revenue 181,148 194,933 210,214 221,353 232,135 239,079 243,861

Other Income 21,793 22,883 23,569 24,041 24,522 25,012 25,512

Accretion of Deferred Revenue 21,769 19,493 14,715 11,068 6,964 7,172 7,316

Total Revenue 224,710 237,309 248,498 256,461 263,621 271,263 276,689

Total Op. Expenses (137,708) (131,158) (124,810) (159,921) (156,188) (173,428) (183,660)

Results from Operating Activities 87,002 106,151 123,688 96,540 107,433 97,835 93,028

Finance Income 3,937 4,134 4,258 4,343 4,430 4,519 4,609

Finance Costs (1,675) 0 0 0 0 0 0

Net Finance Income 2,262 4,134 4,258 4,343 4,430 4,519 4,609

Share of Profit of Associates, Net of Tax 4,183 0 0 0 0 0 0

Profit before Income Tax 47,495 110,285 127,946 100,884 111,863 102,354 97,638

Income Tax Expenses (3,841) (8,823) (12,795) (12,106) (13,424) (12,283) (11,717)

Profit for the Year 43,654 101,462 115,152 88,778 98,439 90,072 85,921

Discounted FCFEYear Ending (S$ '000)

Apr-15 Apr-16 Apr-17 Apr-18 Apr-19 Apr-20

Net Income 39,719 29,719 23,556 17,897 18,558 18,929

Less: Net Capex (24,422) (4,131) (7,182) 7,282 922 (9,160)

Less: Change in NWC (31,645) 615 16,900 7,617 21,686 (1,052)

Add: Additional Debts 5,933 10,883 3,970 (9,197) (3,621) 5,499

FCFE (10,416) 37,086 37,245 23,599 37,545 14,215

Calculation of Stock Value

Stage 1 NPV (S$ mil) 107.48

PV (Terminal Value) - S$ mil: 306.94

Equity Value - S$ mil 414.42

Attributable to:

Minority Interest - S$ mil 29.01

Vibrant Shareholders - S$ mil 385.41

# of Shares (mil) 2,425.6

Value Per Share (S$) 0.159

Relative ValuationCompany Name Country Mkt Cap Price to Earnings (PE) Price to Book (P/B)

Kerry Logistics Network HK 3304.36 8.63 1.49

Changan Minsheng Apll HK 236.54 5.07 0.94

ASR Holdings Ltd HK 179.94 11.95 3.72

SG & G Corp KR 193.49 5.16 0.77

CWT Ltd SG 1005.51 8.83 1.45

Poh Tiong Choon Logistics SG 139.76 12.40 2.06

Dimerco Express Corp TW 105.84 13.94 1.39

T.H.I. Global Holdings TW 816.15 21.30 2.53

Average 10.91 1.79

Vibrant Group Ltd SG 263.86 6.44 1.08

Attributable to:

Consolidated Shareholders

Implied Valuation (P/E Ratio) 0.174 0.162

Implied Valuation (P/B Ratio) 0.170 0.158

Valuation Summary

Current Price: S$ 0.103

Intrinsic Valuation: S$ 0.159

Relative Valuation (P/E): S$ 0.162

Relative Valuation (P/B): S$ 0.158

Business Risks

• Small Business Risk• Market Cap: ~S$ 250 mil split into multiple businesses

• Property Regulations & Property Cycle

• Significant Holdings of Listed Securities (S$ 170 mil)• Exposure to Market Risks

• Significant Amount of Income Potentially One-Off• Accretion of Deferred Revenue

• Capital Gains from Investments

• Dividends from Investments

Financial Risk

• Default Risk (Moderately)

• Debt-to-Equity: 1.24x

• Solvency Risk (Moderate)

• Interest Coverage: NIL

• Current Ratio: 1.60

• Debts Due This Year: S$ 190.46 mil

• Cash Balance: S$ 53.70 mil

Q & A