Uni-Asia Group Ltd. · SGX:CHJ
Uni-Asia — FY2020 Earnings Presentation
61 slides from Uni-Asia's earnings presentation, Mar 1, 2021
Slide 1: FY2020 Results Presentation
FY2020 Results Presentation
Slide 2: Disclaimer
DISCLAIMER This presentation may contain forward-looking statements which can be identified by the context of the statement and generally arise when the Company is discussing its beliefs, estimates or expectations. Such statements may include comments on industry, business or market trends, projecti
Slide 3: Table of Contents
TABLE OF CONTENTS • Financial Highlights • Business Updates • Appendix 1 – Corporate Information 3 3
Slide 4: Financial Highlights
' S ti r ifs ae Financial Highlights
Slide 5: Disposal of Controlling Stake in Hotel Business
DISPOSAL OF CONTROLLING STAKE IN HOTEL BUSINESS As announced on 26 June 2020, the Group had disposed of controlling stake in Uni-Asia Hotels group, which houses the Group’s hotel operating business. Accordingly, hotel operating business was deconsolidated from the Group’s financials. Due to COVID-19
Slide 6: Full Year Profit and Loss
FULL YEAR PROFIT AND LOSS Restated Restated (US$'000) 2H2020 % Change FY2020 % Change 2H2019 FY2019 Total Income 24,384 25,714 (5%) 45,943 (A) 54,545 (16%) Total Expenses (24,558) (21,255) 16% (53,391) (B) (37,073) 44% Operating (Loss)/ Profit (174) 4,459 (104%) (7,448) 17,472 (143%) (Loss)/ Profit
Slide 7: Profit Trend
PROFIT TREND COVID-19 disrupted the Group’s profit growth trajectory. US$’m Profit After Tax 10.0 8.87 5.0 6.61 3.92 0.0 (5.0) (7.48) (10.0) (12.23) (15.0) 7
Slide 8: Profit and Loss Summary by Segments
PROFIT AND LOSS SUMMARY BY SEGMENTS • Shipping managed $0.8 million profit in 2H2020 and recovered some losses made in 1H2020. • Property business was profitable for FY2020 contributing $4.3 million to bottom-line. • Loans of $3.7 million to hotel operating business were written off as at end of 202
Slide 9: Dividend
DIVIDEND • On 8 April 2019, the Group announced a target to pay out at least 40% of the Group’s FY2020’s profit as dividend, and dividend shall be paid semi-annually. • Regretfully, COVID-19 had disrupted the Group’s growth and dividend plans for 2020. • Notwithstanding the pandemic, the Group will
Slide 10: Dividend History
DIVIDEND HISTORY SG Cents Per Share Dividend Per Share In Singapore Cents (1) 5.00 4.00 4.67 4.17 4.17 4.17 4.17 4.20 3.00 3.33 2.00 2.00 1.00 1.00 - FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 Note: (1) Total number of shares used for computing dividend per share are adjusted for
Slide 11: Balance Sheet Summary
BALANCE SHEET SUMMARY As at As at (US$'mil) 31-Dec-20 31-Dec-19 Inc / (Dec) Total Assets 249.5 594.1 (344.6) Total Liabilities 130.1 468.0 (337.9) Total Equity 119.4 126.1 (6.7) Total Debt 114.0 *(A) 142.6 *(A) (28.6) Total Cash 35.5 *(B) 58.9 *(B) (23.4) Debt to Equity Ratio (Gearing) 0.95 1.13 (0.
Slide 12: Total Assets Allocation
TOTAL ASSETS ALLOCATION Total assets excluding right-of-use assets due to lease accounting 2.4% Legend: 8.3% 14.4% Maritime Investment 19.6% Property Investment 19.8% Cash and Cash Equivalents 63.4% 11.0% 61.1% Others US$’m As at 31 December 2020 As at 31 December 2019 Total assets excluding ROU ass
Slide 13: Borrowings
BORROWINGS US$'m Borrowings as at End of Financial Period 500.0 Borrowings of hotel operating business are excluded in 400.0 FY2020 following the 300.0 disposal of controlling stake 216.8 164.3 185.4 180.7 200.0 66.5 142.6 54.5 54.3 69.2 114.0 100.0 71.3 44.4 109.8 131.1 150.3 111.5 71.3 69.6 - FY20
Slide 14: Cash Flows
CASH FLOWS (US$'000) FY2020 FY2019 Cash and cash equivalents at beginning of the year 56,089 43,462 Cash inflow / (outflow) Operating activities 6,805 39,343 Investing activities (3,265) 43,892 Financing activities (25,249) (71,037) Effect of exchange rate changes 1,097 429 Net cash (outflow)/ inflo
Slide 15: Operating Cash Flows
OPERATING CASH FLOWS Operating Cashflows US$’m 40.0 39.34 35.0 30.0 25.0 20.0 17.00 12.33 14.10 15.0 10.0 5.0 6.81 0.0 Reduction in operating cash flows due to impact of COVID-19 on ship charter income and hotel income; and inclusion of expenditure for new properties under development (ALERO series)
Slide 16: Cash Balance
CASH BALANCE US$'m Cash Balance excluding Pledged Deposits 60.00 56.09 50.00 43.46 40.56 40.00 35.55 35.48 30.33 30.00 20.00 10.00 0.00 Dec 15 Dec 16 Dec 17 Dec 18 Dec 19 Dec 20 Excluding hotel operations’ cash, total cash balance of the Group as at 31 December 2020 was still above the levels as at
Slide 17: Business Updates
Business Updates
Slide 18: Shipping Business
SHIPPING BUSINESS Modification to Shipping Business Sub-segments: Before 31 December 2019: Uni-Asia Shipping Maritime Asset Management 8 wholly-owned vessels 11 joint-investment vessels (including 1 leased vessel) 3 wholly-owned vessels Modification: Sub-segment name change Ship Owning and Charterin
Slide 19: Shipping Business
SHIPPING BUSINESS The Group provides comprehensive solutions to ship investments Ship Owning and Chartering Owns and charters out vessels providing recurrent income and operating cash flows to the Group Maritime Asset Management Maritime Services Invests in vessels and provides ship provides service
Slide 20: Shipping Business
SHIPPING BUSINESS Restated % Restated % (US$'000) 2H2020 FY2020 2H2019 Change FY2019 Change Revenue 19,033 20,498 (7%) 34,861 41,334 (16%) Shipping Net Profit / (Loss) 763 1,195 (36%) (10,436) 3,543 N/M Ship Owning and Chartering Revenue 17,557 18,998 (8%) 31,401 37,626 (17%) Ship Owning/ Leasing &
Slide 21: COVID-19 Impact on Shipping Business
COVID-19 IMPACT ON SHIPPING BUSINESS After underperforming 2019’s index for 10 months, the 2020 Baltic Handysize Index (“BHSI”) finally outperformed 2019’s index from November 2020. According to projections by Clarksons Research, bulker supply growth is around 2.6% for 2021 while bulker demand growt
Slide 22: Ship Owning and Chartering
SHIP OWNING AND CHARTERING Semi-Annual Charter Information for Wholly-Own Vessels Portfolio Charter Income No. of (US$'000) Charter Income and No. of Operating Days Operating Days 20,000 2,100 15,000 2,050 2,000 10,000 1,950 5,000 1,900 0 1,850 1H2018 2H2018 1H2019 2H2019 1H2020 2H2020 Charter Incom
Slide 23: Ship Owning and Chartering
SHIP OWNING AND CHARTERING Wholly-Owned Vessels Portfolio as at 28 February 2021 Name of Subsidiary Type Capacity Year of Built Shipyard 1 Florida Containership S.A. Containership 3,500 TEU 2007 Hyundai Mipo Joule Asset Management 2 Bulker 29,078 DWT 2012 Y-Nakanishi (Pte.) Limited 3 Fulgida Bulkshi
Slide 24: Ship Owning and Chartering
SHIP OWNING AND CHARTERING Name of Subsidiary Type Capacity Year of Built Shipyard 1 Florida Containership S.A. Containership 3,500 TEU 2007 Hyundai Mipo – In December 2020, the Group entered into an Memorandum of Agreement with an unrelated third party to sell “M.V. Uni Florida”, a 3,500 TEU contai
Slide 25: Ship Owning and Chartering
SHIP OWNING AND CHARTERING (US$'000) 2H2020 2H2019 % Change FY2020 FY2019 % Change Turnover 17,557 18,998 (8%) 31,401 37,626 (17%) Charter Income 16,653 18,316 (9%) 30,396 36,525 (17%) Fee Income 277 233 19% 519 476 9% Investment Returns 237 153 55% (22) 140 (116%) Interest Income 1 65 (98%) 17 133
Slide 26: Maritime Asset Management
MARITIME ASSET MANAGEMENT Maritime Asset Management Department (“MAMD”) manages a portfolio of joint-investment ship investments and provides structured finance solutions services to clients. Joint Investment Portfolio as at 28 February 2021 Name of Joint Ownership Type Capacity Year of Built Shipya
Slide 27: Maritime Asset Management
MARITIME ASSET MANAGEMENT Name of Joint Ownership Type Capacity Year of Built Shipyard Investment Company Percentage 1 Rich Containership S.A. 50% Containership 4,300 TEU 2007 Hyundai Mipo Prosperity 2 50% Containership 4,300 TEU 2007 Hyundai Mipo Containership S.A. – In early November 2020, the con
Slide 28: Maritime Asset Management
MARITIME ASSET MANAGEMENT (US$'000) 2H2020 2H2019 % Change FY2020 FY2019 % Change Turnover 1,074 1,223 (12%) 2,760 2,851 (3%) Fee Income 792 1,585 (50%) 2,377 2,632 (10%) Investment Returns 77 (551) 114% (71) (126) 44% Interest Income 205 189 8% 454 345 32% Expenses (669) (765) (13%) (2,417) (1,374)
Slide 29: Maritime Services
MARITIME SERVICES – The Group’s Maritime Services arm includes the following subsidiaries: Uni Ships and Management Limited Wealth Ocean Ship Management (Shanghai) Co., Ltd – Services provided include commercial / technical management of ships and ship related brokerage services for chartering a
Slide 30: Maritime Services
MARITIME SERVICES Due to COVID-19, many Governments restricted seafarers onshore as well as crew change, resulting in seafarers having to work for a prolonged period on ships, thereby suffering from physical as well as mental fatigue. The Group’s dedicated Maritime Services arm works tirelessly roun
Slide 31: Maritime Services
MARITIME SERVICES (US$'000) 2H2020 2H2019 % Change FY2020 FY2019 % Change Turnover 924 1,086 (15%) 1,984 2,432 (18%) Fee Income 922 1,081 (15%) 1,966 2,397 (18%) Investment Returns - (9) (100%) - (9) (100%) Interest Income - 13 (100%) 5 26 (81%) Other Income 2 1 100% 13 18 (28%) Expenses (773) (978)
Slide 32: Property Business
PROPERTY BUSINESS Under Property business segment, there are two sub-segments: Property Investment Property Investment (ex Japan) (in Japan) Invests and manages property investments Focuses on property outside of Japan investments in Japan Property Business 32
Slide 33: Property Business
PROPERTY BUSINESS % % (US$'000) 2H2020 2H2019 FY2020 FY2019 Change Change Property Revenue 5,229 5,190 1% 10,846 13,154 (18%) (FY2019 adjusted without hotel operations) Net Profit / (Loss) 1,446 2,125 (32%) 4,255 10,017 (58%) Property Investment (ex Japan) Revenue 1,999 2,466 (19%) 3,338 6,985 (52%)
Slide 34: Property Investment ex Japan
PROPERTY INVESTMENT EX JAPAN Hong Kong Property Business – The Group has invested in 8 Hong Kong property projects to-date. Completed Completed Completed 34
Slide 35: Hong Kong Property Project (T18)
PROPERTY INVESTMENT EX JAPAN Hong Kong Property Business – 4th HK Property Project (T18) HKD26.5 million or around Investment: USD3.4 million (2.5% effective ownership) 18 - 20 Tai Chung Road, Tsuen Location: Wan, Hong Kong A commercial office building to be Project: completed by 2021 Construction i
Slide 36: Hong Kong Property Project (T73)
PROPERTY INVESTMENT EX JAPAN Hong Kong Property Business – 5th HK Property Project (T73) HKD33.8 million or around USD4.3 million (7.5% effective Investment: ownership) Location: 71 – 75 Chai Wan Kok Street, Tsuen Wan, Hong Kong Project: An industrial building to be completed by 2021 Construction is
Slide 37: Hong Kong Property Project (CSW1018)
PROPERTY INVESTMENT EX JAPAN Hong Kong Property Business – 6th HK Property Project (CSW1018) HKD35.2 million or around USD4.5 million (3.825% Investment: effective ownership) Location: 1016 – 1018 Tai Nam West Street, Kowloon, Hong Kong Project: A industrial office building to be completed by 2022 S
Slide 38: Hong Kong Property Project (T11)
PROPERTY INVESTMENT EX JAPAN Hong Kong Property Business – 7th HK Property Project (T11) HKD53.75 million or around Investment: USD6.85 million (8.27% effective ownership) 11 – 15 Chai Wan Kok Street, Location: Tsuen Wan, Hong Kong A commercial office building to Project: be completed by 2021 Supers
Slide 39: Hong Kong Property Project (CSW918)
PROPERTY INVESTMENT EX JAPAN Hong Kong Property Business – 8th HK Property Project (CSW918) HKD33.0 million or around Investment: USD4.23 million (3.0% effective ownership) 916 – 926 Cheung Sha Wan Location: Road, Hong Kong Two phases of an industrial Project: office building complex to be completed
Slide 40: COVID-19 Impact on HK Property Business
COVID-19 IMPACT ON HK PROPERTY BUSINESS COVID-19 pandemic situation is gradually under control in Hong Kong as of 4 February 2021. Vaccines could be available from March 2021. Source: Centre for Heath Protection, The Government of the Hong Kong Special Administration Region 40
Slide 41: COVID-19 Impact on HK Property Business
COVID-19 IMPACT ON HK PROPERTY BUSINESS Transaction of Commercial Property Market December 2020 saw an increase in transactions of commercial properties in Hong Kong. These are mainly bargain hunting by retail investors for retail shops sold at a discount. Meanwhile, office transactions are relative
Slide 42: HK Property Business Outlook
HK PROPERTY BUSINESS OUTLOOK • While the general Hong Kong office market has suffered an overall decline in 2020 due to COVID-19, the Hong Kong stock market average daily turnover has increased by 49 per cent when compared to 2019. The average daily turnover may continue to rise as more Chinese tech
Slide 43: Property Investment ex Japan
PROPERTY INVESTMENT EX JAPAN (US$'000) 2H2020 2H2019 % Change FY2020 FY2019 % Change Turnover 1,999 2,466 (19%) 3,338 6,985 (52%) Fee Income 257 287 (10%) 645 512 26% Investment Returns 1,711 2,062 (17%) 2,592 6,301 (59%) Interest Income 29 112 (74%) 92 150 (39%) Other Income 2 5 (60%) 9 22 (59%) Ex
Slide 44: Property Investment in Japan
PROPERTY INVESTMENT IN JAPAN Small Residential Property Business in Japan – The Group invests and develops small residential property projects in Tokyo, named “ALERO” Series. – Such investments are managed by subsidiary, Uni-Asia Capital (Japan) (“UACJ”) and held under our subsidiary, Uni-Asia Inves
Slide 45: ALERO TK Invested Amount by Years
PROPERTY INVESTMENT IN JAPAN Small Residential Property Business in Japan – Average investment period < 2 years – Investment amount: ~USD3m to USD5m – Investment stake ranges from 10% to 100% – In 2020, the Group recorded the highest amount of TK invested in ALERO series since the ALERO projects sta
Slide 46: Construction Management
PROPERTY INVESTMENT IN JAPAN Construction Management (“CM”) Utilising our property development expertise, UACJ helps external clients with construction management of small residential properties and hotels. 46
Slide 47: Number of ALERO Projects
PROPERTY INVESTMENT IN JAPAN Small Residential Property Business in Japan As the Group expands ALERO business, 2020 saw the most number of new projects and number of on-going projects as at year-end since 2011. No. of Alero Projects (Including Construction Management Projects) 16 16 14 13 13 12 12 1
Slide 48: Small Residential Projects in Tokyo (Sold & Holding)
SMALL RESIDENTIAL PROJECTS IN TOKYO, JAPAN (SOLD & HOLDING PROJECTS) 1 SHIMOMEGURO PROJECT (SOLD) 17 SASAZUKA PROJECT (SOLD) 29 KOMAZAWA DAIGAKU PROJECT (SOLD) Projects under lease 2 AKEBONOBASHI PROJECT (SOLD) 18 HIGASHI KOENJI PROJECT (SOLD) 30 SANGENJAYA II PROJECT (SOLD) 1 TAKADANOBABA PROJECT (
Slide 49: Small Residential Projects in Tokyo (Under Construction/Planning)
SMALL RESIDENTIAL PROJECTS IN TOKYO, JAPAN (PROJECTS UNDER CONSTRUCTION/PLANNING) 1 IKEJIRI OHASHI PROJECT 9 MUSASHI KOYAMA II (EBARA) PROJECT 14 MEDAIMAE PROJECT scheduled for completion in Apr 2021 scheduled for completion in May 2021 scheduled for completion in Oct 2021 2 YOTSUYA 4 PROJECT 10 TAK
Slide 50: Asset Management Business
PROPERTY INVESTMENT IN JAPAN Asset Management Business In addition to investment and construction management, UACJ also provides asset management services for three main categories of property assets: a) Hotel/Hostel b) Residential c) Healthcare Total AUM under UACJ has increased over the years, pro
Slide 51: Some UACJ Projects
PROPERTY INVESTMENT IN JAPAN Some UACJ projects: Completed Hotel CM project: Completed and Sold ALERO project: Soki Atami ALERO SengokuⅡ Ongoing ALERO project: Ongoing Hotel AM project: Ongoing Healthcare AM project: ALERO Musashi KoyamaⅡ Azumi Setoda Tama Center Medical mall 51
Slide 52: COVID-19 Impact on Japan Property Business
COVID-19 IMPACT ON JAPAN PROPERTY BUSINESS 3269: Advance Residence Investment Corporation (Largest Residential REIT in Japan) 3283: Nippon Prologis REIT (Largest Logistic REIT in Japan) 8963: Invincible Investment Corporation (Largest Hotel REIT in Japan) 8951: Nippon Building Fund (Largest Office R
Slide 53: Property Investment in Japan
PROPERTY INVESTMENT IN JAPAN (US$'000) 2H2020 2H2019 % Change FY2020 FY2019 % Change Turnover 3,229 2,747 18% 7,536 6,350 19% Fee Income 1,155 1,048 10% 3,403 3,258 4% Investment Returns 1,922 1,426 35% 3,654 2,603 40% Interest Income 131 266 (51%) 436 482 (10%) Other Income 21 7 200% 43 7 N/M Expen
Slide 54: Vista Hotel Management
VISTA HOTEL MANAGEMENT Current Portfolio of Hotels Under Operations ■ Sapporo, Hokkaido • Hotel Vista Sapporo Nakajimakohen ■ Sendai, Miyagi • Hotel Vista Sapporo Odori • Hotel Vista Sendai ■ Kanazawa, Ishikawa • Hotel Vista Kanazawa ■ Tokyo • Hotel Vista Premio Tokyo Akasaka ■ Kyoto • Hotel Vista T
Slide 55: Appendix - Corporate Information
Appendix 1 - Corporate Information
Slide 56: Business Model
BUSINESS MODEL • Manage and/or operate assets to enhance asset value and recurring income. • Capital returns • Acquire assets at competitive • Recurring prices. income including • Provide clients charter income, solutions relating administration to alternative assets including fee income. ship and p
Slide 57: Corporate Profile
CORPORATE PROFILE Founded on 17 March 1997 Listed on Singapore Exchange on 17 August 2007 Tokyo Completed Scheme of Shanghai Arrangement in 2017 with Singapore Guangzhou incorporated listco – Hong Kong Uni-Asia Group Limited Bloomberg Code: UAG:SP SGX Stock Code: Singapore CHJ 57
Slide 58: Business Model Example - Subsidiary
BUSINESS MODEL EXAMPLE - SUBSIDIARY Uni-Asia Lenders Subsidiary Legend: FV Adj / Income to Charterer / Income Realised Uni-Asia Tenant G/L 58
Slide 59: Business Model Example - JV Structure
BUSINESS MODEL EXAMPLE – JV STRUCTURE Investment Uni-Asia Partner(s) Admin Fee Arrangement Special Purpose FV Adj / Lenders Fee Company Dividend/ Realised Interest G/L Acquisition/ Disposal Fee Brokerage Fee Legend: Income Charterer / Income to Tenant Uni-Asia 59
Slide 60: Business Segments
BUSINESS SEGMENTS SHIPPING PROPERTY HEADQUARTERS Maritime Property Property Headquarters’ Ship Owning Maritime Investment Investment Asset Shared Corporate and Chartering Services (ex Japan) (in Japan) Management Services • Investment/ • Commercial/ Technical Investment/ Investment/ Asset Management
Slide 61: Thank you
| Thank you