Global Investments Limited · SGX:B73
Global Investments — Babcock & Brown Structured Finance Fund — Q3 2007 Earnings Presentation
26 slides from Global Investments's earnings presentation, Nov 14, 2007
Slide 1: Babcock & Brown Structured Finance Fund Limited 2007 Third Quarter Results
Babcock & Brown Structured Finance Fund Limited 2007 Third Quarter Results Period ended 30 September 2007 14 November 2007
Slide 2: Disclaimer
DISCLAIMER Information contained in this presentation is intended solely for your personal reference and is strictly confidential. Such information is subject to change without notice, its accuracy is not guaranteed and it may not contain all material information concerning the company. Neither Babc
Slide 3: Agenda
AGENDA 1. Highlights 2. Q3 2007 Financial Results 3. Portfolio Update 4. Outlook 3
Slide 4: Highlights
&2 STRUCTURED FINANCE FUND Highlights
Slide 5: Q3 Highlights
Q3 HIGHLIGHTS The strong performance for the quarter has been driven by the following significant factors: Assets purchased in 1H 2007 are now producing cash 1H Assets commence income economic income available for distribution Further increase in the Ancora- Procured an additional A$13.5 million in
Slide 6: Another Dividend Upgrade
ANOTHER DIVIDEND UPGRADE 2007 Dividend Growth of 12.0% over Prospectus Forecast ¾ 2H 2007 Dividend – second increase to 6 cps 2H 2007 ¾ Total 2007 dividend is 1.16 cps over Prospectus 24% Projections Increase is driven by: 4.84 6.00 ¾ Continued strong performance of investments acquired at IPO ¾ New
Slide 7: Dividend Timetable
DIVIDEND TIMETABLE 1 December 2007 3 January 2008 Late February 14 March 2008 Expected Expected Full Year Expected Declaration of BCD Results Payment 6 cents ¾ 2008 Dividends are expected to be paid earlier than 2007 Dividends. 7
Slide 8: Agenda
AGENDA 1. Highlights 2. Q3 2007 Financial Results 3. Portfolio Update 4. Outlook 8
Slide 9: Q3 2007 Financial Results
&2 STRUCTURED FINANCE FUND Q3 2007 Financial Results
Slide 10: Key Financial Data - Quarter Ended 30 Sep 2007
KEY FINANCIAL DATA - QUARTER ENDED 30 SEP 2007 1 Total Revenue > S$19.4 million 2 Net profit after tax > S$12.5 million 3 Earnings per share > 3.23 cents per Share 4 Net asset value > 90.0 cents per Share > approx S$143m of corporate debt 5 Gearing facility used at 30 September 2007 > greater than e
Slide 11: Consolidated Balance Sheet
CONSOLIDATED BALANCE SHEET Balance Sheet Group as at Group as at Change 30 Sep 07 31 Dec 06 S$’000 S$’000 S$’000 Assets Cash and cash equivalents 108,613 64,953 43,660 Available for sale financial assets 238,114 123,728 114,386 Loans and receivables 146,217 148,866 (2,649) Guarantee fee receivable 6
Slide 12: Consolidated Income Statement
CONSOLIDATED INCOME STATEMENT Income Statement Group for the Group quarter ended year to date 30 Sep 07 30 Sep 2007 S$’000 S$’000 Revenue Distribution income 653 1,794 Interest income 12,279 33,629 Rental income 1,435 4,354 Guarantee fee income 1,232 3,554 Net foreign exchange gains 2,701 9,883 Othe
Slide 13: Impact of the Global Credit Market Disruption on BBSFF
IMPACT OF THE GLOBAL CREDIT MARKET DISRUPTION ON BBSFF • No BBSFF assets are impaired • Cash economic income for the quarter ended and for the year to date are above internal projections • Impact on any BBSFF borrowings Financial – No requirement to lodge collateral Considerations – No change in mar
Slide 14: Impact of the Global Credit Market Disruption on BBSFF (cont)
IMPACT OF THE GLOBAL CREDIT MARKET DISRUPTION ON BBSFF (cont) • MTM change in value of a number of assets where credit spreads have widened. The total MTM valuation change is S$8.5 million on total assets of S$640 million (1.36%) • Importantly: Accounting – MTM changes are not write-offs and do not
Slide 15: Portfolio Update
&2 STRUCTURED FINANCE FUND Portfolio Update
Slide 16: Portfolio Composition as at 30 Sep 2007
PORTFOLIO COMPOSITION AS AT 30 SEP 2007 (By Acquisition Price) Paramount Mezzanine Loan 4% Alternative Assets Music Copyright LL Pa 9% 26% C r ad Loan Portfolio and – S ox Lo ub Ca AGSO Loan Guarantee Securitisation A a o n rdi pita 13% In v n c o 4 % na l Assets en ra te tor -Pr d y F ov 44% in a i
Slide 17: Portfolio Performance Summary
PORTFOLIO PERFORMANCE SUMMARY In summary as at today: ¾ BBSFF has received at least its originally anticipated cash economic income from all assets and expects to receive more than its anticipated cash economic income from a number of assets for 2H 2007 and expects to receive its originally anticipa
Slide 18: Q3 Divestments
Q3 DIVESTMENTS Class B membership interest JET-i Holdings ¾ Capital Gain of US$15.8m on an investment of US$15.4 million i.e. 102% capital profit ¾ Expected sale of B&B Air Shares in 2008, upon expiry of the escrow period. Such B&B Air Shares have a quarterly dividend payment reflecting an annual yi
Slide 19: Operating Lease Assets
OPERATING LEASE ASSETS Operating Lease Assets Description Acquisition Date Acquisition Price Acquisition Price1 (Base Currency $ (S$ million) million) Class B membership interest in JET-i/ B&B Air Aircraft IPO & 27 September 2007 USD 31.3 46.6 B&B Aircraft Lessor No.2 Aircraft IPO USD 10.8 16.1 Clas
Slide 20: Loan Portfolio & Securitisation Assets
LOAN PORTFOLO & SECURITISATION ASSETS Loan Portfolio and Securitisation Assets Description Acquisition Acquisition Price Acquisition Date (Base Currency Price1 $ million) (S$ million) Ancora–Pepper Securitisation No.2 Investment AU residential property IPO AUD 13.3 17.4 Ancora–Pepper Securitisation
Slide 21: Alternative Assets
ALTERNATIVE ASSETS Alternative Assets Description Acquisition Date Acquisition Price Acquisition Price1 (Base Currency $ million) (S$ million) AGSO Loan Guarantee Share margin facility IPO AUD 50.0 65.7 Paramount Mezzanine Loan US property development loan IPO USD 15.0 22.4 Music copyrights Music ca
Slide 22: Agenda
AGENDA 1. Highlights 2. Q3 2007 Financial Results 3. Portfolio Update 4. Outlook 22
Slide 23: Outlook
&2 STRUCTURED FINANCE FUND Outlook
Slide 24: Macroeconomic Outlook
MACROECONOMIC OUTLOOK • Slowdown continues – recession not considered likely by commentators, but housing sector in decline • US rates were lowered by 75bps since September to create liquidity and try to stimulate economic United States activity • Labour market remains tight, which acts as counter t
Slide 25: Company Outlook
COMPANY OUTLOOK ¾ Further increase in 2H 2007 dividend guidance to 6.00 cents per share delivering investors 2007 a yield of 11.6% per annum (based on share price at S$0.92 on 13 November 2007) Dividend Guidance ¾ 12% dividend growth in first year of operation ¾ Policy of delivering cash economic in
Slide 26: Thank You
THANK YOU For further information, please contact: Stuart Gray +65 6309 4660 stuart.gray@babcockbrown.com Level 29, 21/22 UOB Plaza 2 80 Raffles Place SINGAPORE 048624 Sylvia Wiggins +61 2 9229 1800 sylvia.wiggins@babcockbrown.com Level 23, Chifley Tower 2 Chifley Square SYDNEY NSW 2000 www.bbstruct
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