Uni-asia Group Ltd. · SGX:CHJ
Uni-asia — Q3 2020 Earnings Presentation
41 slides from Uni-asia's earnings presentation, Nov 13, 2020
Slide 1: 3Q2020 Corporate Updates
ory 7 | Ome na a ‘I ty . UNI-ASIA GROUP LIMITED 3Q2020 Corporate Updates
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 • Business Updates • Financial Highlights
Slide 4: Business Updates
Business Updates
Slide 5: Shipping Business
SHIPPING BUSINESS Modification to Shipping Business Sub-segments: As at 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 Chartering
Slide 6: 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 7: Ship Owning and Chartering
SHIP OWNING AND CHARTERING Wholly-Owned Vessels Portfolio 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 Bulkship S.A. Bulker 29,256 DW
Slide 8: Ship Owning and Chartering
SHIP OWNING AND CHARTERING Despite the various challenges faced, the handysize dry bulk market experienced steady recovery since May 2020. The Baltic Handysize Index (“BHSI”) for 10M2020, while still underperforming that of 10M2019, has been on an upward trend since mid-May 2020. BHSI Index – 10M202
Slide 9: Ship Owning and Chartering
SHIP OWNING AND CHARTERING With rates improving in 3Q2020, quarter-to-quarter average daily charter hire trend of the Group’s wholly owned ships had began trending up in 3Q2020 US$/ day Quarter to Quarter Average Daily Charter Hire Rate Per Day 12,000 11,000 10,178 9,782 9,554 10,000 9,281 9,215 9,2
Slide 10: Ship Owning and Chartering
SHIP OWNING AND CHARTERING Total charter income had improved with better daily rates. 3Q2020 income performed better than 1Q2020 and 2Q2020. Charter Income Quarter to Quarter Charter Income and No. of Operating Days No. of (US$'000) Operating Days 1,050 10,000 1,000 5,000 950 0 900 2Q2018 3Q2018 4Q2
Slide 11: 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 Name of Joint Ownership Type Capacity Year of Built Shipyard Investment Company P
Slide 12: 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 – In early November 2020, the containership “Ital Massima” held by Rich Containership S.A. was sold as part of
Slide 13: 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 14: Maritime Services
MARITIME SERVICES Due to Covid-19, many seafarers across the world had to work for a prolonged period on ships because port authorities fear new Covid-19 infections and do not want them ashore. In some countries, crew changes are banned outright, while in others, restrictions make them difficult to
Slide 15: 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 15
Slide 16: 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 16
Slide 17: Hong Kong Property Project (T18)
PROPERTY INVESTMENT EX JAPAN Hong Kong Property Business – 4th HK Property Project (T18) HKD25.0 million or around Investment: USD3.2 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 18: Hong Kong Property Project (T73)
PROPERTY INVESTMENT EX JAPAN Hong Kong Property Business – 5th HK Property Project (T73) HKD26.81 million or around USD3.4 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 o
Slide 19: Hong Kong Property Project (CSW1018)
PROPERTY INVESTMENT EX JAPAN Hong Kong Property Business – 6th HK Property Project (CSW1018) HKD48.2 million or around USD6.2 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 F
Slide 20: 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 A commercial office building to Project: be completed by 2021 All foundation wo
Slide 21: Hong Kong Property Project (CSW918)
PROPERTY INVESTMENT EX JAPAN Hong Kong Property Business – 8th HK Property Project (CSW918) HKD33.00 million or around Investment: USD4.23 million (3.0% effective ownership) 916-926 Cheung Sha Wan Location: Road Two phases of an industrial Project: office building complex to be completed by 2023 Dem
Slide 22: 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 28 Oct 2020 with zero community cases. Source: Centre for Heath Protection, The Government of the Hong Kong Special Administration Region 22
Slide 23: Covid-19 Impact on HK Property Business
COVID-19 IMPACT ON HK PROPERTY BUSINESS Hong Kong Office Rental • Rental in the premium districts (Central / Admiralty / Sheung Wan / Tsim Sha Tsui / Wanchai) has experienced more fluctuations when compared to areas decentralized commercial locations in Kowloon. • The Group’s projects are all locate
Slide 24: Covid-19 Impact on HK Property Business
COVID-19 IMPACT ON HK PROPERTY BUSINESS Transaction of Commercial Property Market • In the broader commercial property market in HK, prices and volume in 2019 were affected by the protest in HK, while the decline continued into 2020 due to Covid- 19. However as the Covid-19 is starting to subside, t
Slide 25: HK Property Business Outlook
HK PROPERTY BUSINESS OUTLOOK • While Hong Kong’s office market saw further decline in 3Q2020, a new segment of China companies is slowly making inroad into the Hong Kong office market. Such companies include distribution companies and suppliers (i.e. logistics), Fintech, retailers and social media c
Slide 26: 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 27: Property Investment in Japan: 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. 27
Slide 28: Property Investment in Japan
PROPERTY INVESTMENT IN JAPAN Small Residential Property Business in Japan The small residential property segment focused by the Group is not affected by the pandemic. The Group continues expanding ALERO projects in 2020, with JPY500 million invested in ALERO projects in 9M2020. (JPY million) ALERO T
Slide 29: Property Investment in Japan
PROPERTY INVESTMENT IN JAPAN Small Residential Property Business in Japan By carefully selecting partners and projects, the Group’s ALERO projects has been generating consistent profits to the Group. In 9M2020, including construction management projects, the Group started 9 new projects, completed 7
Slide 30: Small Residential Projects in Tokyo, Japan (Sold & Holding Projects)
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 31: Small Residential Projects in Tokyo, Japan (Projects Under Construction/Planning)
SMALL RESIDENTIAL PROJECTS IN TOKYO, JAPAN (PROJECTS UNDER CONSTRUCTION/PLANNING) 1 IKEJIRI OHASHI PROJECT 9 MUSASHI KOYAMA II (EBARA) PROJECT scheduled for completion in Dec 2020 scheduled for completion in Dec 2020 2 YOTSUYA 4 PROJECT 10 TAKADA PROJECT scheduled for completion in Dec 2020 schedule
Slide 32: Property Investment in Japan: 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 Notwithstanding the pandemic, UACJ’ assets under manag
Slide 33: 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 34: 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 K
Slide 35: Financial Highlights
' S ti r ifs ae Financial Highlights
Slide 36: Total Assets Allocation
TOTAL ASSETS ALLOCATION Total assets excluding right-of-use assets due to lease accounting Legend: 2.2% Maritime Investment 8.3% 15.7% Property Investment 19.6% 18.8% Cash and Cash Equivalents 63.3% 11.0% 61.1% Others US$’m As at 30 September 2020 As at 31 December 2019 Total assets excluding ROU as
Slide 37: Healthy Cash Balance Excluding Pledged Deposits
HEALTHY CASH BALANCE EXCLUDING PLEDGED DEPOSITS US$'m Cash Balance excluding Pledged Deposits 60.00 56.09 50.00 43.46 40.56 40.00 36.32 38.01 35.55 30.33 30.00 20.00 10.00 0.00 Dec 14 Dec 15 Dec 16 Dec 17 Dec 18 Dec 19 Sep 20 Excluding hotel operations’ cash, total cash balance of the Group as at 30
Slide 38: Cash Flow
CASH FLOW (US$'000) 9M2020 9M2019 Cash and cash equivalents at beginning of the period 56,089 43,462 Cash Inflow / (Outflow) Operating Activity 4,775 29,116 Investing Activity (7,394) 44,842 Financing Activity (16,118) (63,408) Effect of exchange rate changes 660 489 Net Cash Inflow for the period (
Slide 39: Operating Cash Flows
OPERATING CASH FLOWS US$’m Operating Cashflows 30.0 29.12 25.0 20.0 15.0 10.64 12.65 10.0 7.56 5.0 4.78 0.0 Reduction in operating cash flow mainly due to impact of Covid-19 on ship charter income and hotel income (included as part of Group’s cashflow in 1H2020). 39 39
Slide 40: Borrowings
BORROWINGS US$'m Borrowings as at End of Financial Period 250.0 216.8 200.0 185.4 180.7 164.4 66.5 142.6 150.0 54.3 120.8 54.5 69.2 100.0 71.3 53.9 50.0 109.8 131.1 150.3 111.5 71.3 66.9 - FY2015 FY2016 FY2017 FY2018 FY2019 9M2020 Non-Current Current Total Exclude lease liabilities due to IFRS 16. •
Slide 41: Thank you
| Thank you