Centurion Corporation Limited · SGX:OU8
Centurion — FY2015 Earnings Presentation
35 slides from Centurion's earnings presentation, Feb 23, 2016
Slide 1: Centurion Corporation Limited 4Q and FY 2015 Financial Results
Centurion Corporation Limited 4Q and FY 2015 Financial Results 23 February 2016
Slide 2: Disclaimer
Disclaimer This presentation should be read in conjunction with the Company’s 4Q and FY 2015 Unaudited Financial Statement Announcement for the period ended 31 December 2015. This presentation and the accompanying presentation materials (if any) ("Presentation") are made for informational purpos
Slide 3: Contents
Contents Key Highlights Financial Review Business Review Strategic Focus 3
Slide 4: About Centurion Corporation
About Centurion Corporation One of Asia’s leading accommodation providers Own, develop and manage quality workers accommodation and student accommodation assets Strong portfolio of 16 operational accommodation assets totalling 50,072 beds1 Operational assets: Total workers: 47,400 beds T
Slide 5: Key Highlights
Key Highlights Strong performance with 14% growth in FY 2015 Net Profit (from core business ops) to S$35.6 mil y-o-y Driven by 30% growth in revenue from Accommodation Business y-o-y Generated stable and strong operating cash of $60.4 million in FY 2015 Declared a final dividend of 1.0 cent
Slide 6: Key Financial Highlights
Key Financial Highlights 4Q 2015 Total Revenue +8% to S$28.3 mil y-o-y Net Profit -90% to S$7.6 mil y-o-y (absence of similar FV gain) Net Profit (from core business ops) -9% to S$9.2 mil y-o-y FY 2015 Total Revenue +24% to S$104.5 mil y-o-y Net Profit -69% to S$34.0 mil y-o-y (absence of
Slide 7: Key Financial Highlights (cont'd)
Key Financial Highlights (cont’d) Healthy Balance Sheet – S$138.4 million in cash and cash equivalents Gearing remains healthy at 50% Long term bank debt to maturity profile of 12 years 4x interest cover is well within interest cover threshold NAV per share increased to 53.5¢ 7
Slide 8: Key Business Highlights
Key Business Highlights Completion of Westlite Tampoi in Jan 2015 Completion of RMIT Village refurbishment works in 1Q 2015 Issuance of S$65 million MTN in Jul 2015 Westlite Woodlands achieved TOP in Jul 2015 Completion of Manchester Student Village (MSV) refurbishment works in Jul 2015
Slide 9: Financial Review
Financial Review Centurion 3
Slide 10: Key Financials
Key Financials Group Net Profit1 increased by 14% to S$35.6m in FY 2015 (Recurring - Exclude one off items) S$’000 4Q 2015 4Q 2014 Change FY 2015 FY 2014 Change Revenue 28,288 26,105 + 8% 104,538 84,443 + 24% Profit from Continuing 7,589 72,928 - 90% 33,979 111,219 - 69% Operations Profit from Core
Slide 11: Segment Breakdown
Segment Breakdown Strong Accommodation Business Results in FY 2015 (Recurring - Exclude one off items) S$’000 Accommodation Optical Disc Workers Students FY 2015 FY 2014 Change FY 2015 FY 2014 Change FY 2015 FY 2014 Change Revenue 72,098 61,909 16% 27,374 14,551 88% 5,066 7,983 -37% Segment Profit 3
Slide 12: Balance Sheet Highlights
Balance Sheet Highlights S$’000 31 Dec 2015 31 Dec 2014 Change % Cash & Cash Equivalents 138,435 63,144 + 119% Current Assets1 148,339 82,446 + 80% Non Current Assets 993,698 791,587 + 26% Total Assets 1,142,037 874,033 + 31% Current Liabilities1 198,268 70,988 + 179% Non Current Liabilities 540,873
Slide 13: Key Ratios
Key Ratios FY 2015 FY 2014 Earnings Per Share 4.5¢ 14.7¢ Earnings Per Share (Excluding fair value gains & write down of 4.7¢ 4.1¢ investment in associate) NAV per share 53.5¢ 51.6¢ Share Price 39.0¢1 50.5¢2 Dividend 1.5¢3 1.0¢4 Market Capitalisation S$293m 1 S$382m 2 Note: 1. As at 31 December 2015
Slide 14: Accommodation Growth Profile
Accommodation Growth Profile1 Accommodation Portfolio - Bed Capacity 80,000 1,901 70,000 1,901 315 456 1,901 315 456 60,000 315 456 1,901 36,400 50,000 30,300 No. of beds 315 456 25,300 40,000 1,906 456 19,800 30,000 14,500 13,500 20,000 10,900 35,500 35,500 35,500 27,600 10,000 19,700 23,500 13,900
Slide 15: Strong Financial Growth of Accommodation Business
Strong Financial Growth of Accommodation Business Accommodation - Revenue & Net Profit1 (S$'000) 99,472 30% 100,000 90,000 76,460 80,000 62% 70,000 60,000 26% 17% 47,275 50,000 37,381 188% 35,189 40,000 30,142 54% 30,000 19,631 12,987 13,761 43% 20,000 156% 5,380 10,000 - 2011 2012 2013 2014 FY 2015
Slide 16: Business Review
Business Review Centurion 16
Slide 17: Workers Accommodation
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Slide 18: Workers Accommodation Landscape – Singapore
Workers Accommodation Landscape – Singapore • General economic slow down, affected by oil prices, construction sector holding up • Increase in new supply • c.57,000 beds1 may enter the market in phases in 2016 • c.49,000 beds1 expiring in 2016 (some beds may be Singapore renewed) • Imbalance in dema
Slide 19: Our Competitive Strengths – Singapore
Our Competitive Strengths – Singapore Diversified portfolio of high quality assets • Catering to workers from all industries – Mandai & Toh Guan • More than 700 customers Assets are well located Assets with long land tenure (c.30% of long term PBWA) Recognised Westlite brand One of the largest worke
Slide 20: Workers Accommodation – Singapore
Workers Accommodation – Singapore 4 operating assets and 1 under development Current capacity of 27,600 beds; 7,900 beds under development On a portfolio basis, assets are achieving healthy occupancy rates Westlite Toh Guan Westlite Mandai (45% owned) Westlite Woodlands Westlite Tuas Purpose
Slide 21: Pipeline Project Under Development
Pipeline Project Under Development Westlite Papan (51% owned) Partnership with Association of Process Industry (ASPRI) to develop 7,900 beds purpose built workers accommodation and ASPRI training centre Strategically located with convenient access to Jurong Island Tapping on future mega trend
Slide 22: Workers Accommodation Landscape – Malaysia
Workers Accommodation Landscape – Malaysia • Slowdown in the manufacturing sector due to the weakening economy • Government taking measures to ensure proper housing for foreign workers • Unclear Government policies on foreign labor • c.2.1 million foreign workers in Malaysia with valid work Malaysia
Slide 23: Our Competitive Strengths – Malaysia
Our Competitive Strengths – Malaysia Only purpose built accommodation owner-operator in Malaysia Focused in the manufacturing sector Customers are mainly MNCs Low cost base Established reputation and strong track record 23
Slide 24: Workers Accommodation – Malaysia
Workers Accommodation – Malaysia 6 operating assets and 3 under development/planning Current capacity of 19,800 beds; 5,500 beds under development; 11,100 beds under planning On a portfolio basis, the Malaysian assets are achieving healthy occupancy rates Operating Accommodation Westlite Tebra
Slide 25: Pipeline Projects Under Development / Planning
Pipeline Projects Under Development / Planning Westlite Senai II Westlite Bukit Minyak Westlite Juru Under development Under planning Under planning Freehold land Freehold land Land tenure of 99 yrs Estimated capacity: 5,500 beds Estimated capacity: 5,000 beds Estimated capacity: 6
Slide 26: Student Accommodation
Student Accommodation 26
Slide 27: Student Accommodation Landscape
Student Accommodation Landscape • Total student numbers of 1.3 million1 in 2014 (+4.5% y-o-y) • c.453,500 international students1 (+10.4% y-o-y) Australia • c.1,025,000 local students1 grew 4.1% • Strong demand for high-quality, purpose built student accommodation • Total student numbers stable at c
Slide 28: Student Accommodation Portfolio
Student Accommodation Portfolio Total operational capacity of 2,672 beds (United Kingdom, Australia and Singapore) United Kingdom Australia Liverpool Manchester RMIT Village, Melbourne rmit village Note: Inclusive of CSL Selegie 28
Slide 29: Student Accommodation in Melbourne, Australia
Student Accommodation in Melbourne, Australia Asset comprised of RMIT Village with an adjoining car park High quality development strategically located near RMIT University and the University of Melbourne Current capacity of 456 beds Evaluating asset enhancement and redevelopment potential
Slide 30: UK Student Accommodation Portfolio
UK Student Accommodation Portfolio A portfolio of 4 student accommodation assets comprising 1,901 beds 3 properties located in Manchester and 1 located in Liverpool, all strategically located to access university campuses and the city centre Liverpool Manchester o Manchester - University of Manc
Slide 31: Refurbishment Works at MSV
Refurbishment Works at MSV MSV refurbishment completed - expansion of office space, new reception area, new gym, new multi-purpose space and addition of communal space for students 31
Slide 32: Singapore Student Accommodation
Singapore Student Accommodation Asset comprise of a 10 storey building with a capacity of 315 beds Commercial space for businesses such as food and beverage outlets 3+3+2 years lease term Strategically located in the city with easy access to o Singapore Management University, LASALLE College
Slide 33: 2016
2016 Centurion 33
Slide 34: Strategic Focus
Strategic Focus Active management of existing asset portfolio to deliver revenue and profit growth Strengthen operational capability Deliver development projects Continue to seek selective opportunities to grow its accommodation assets via acquisitions, joint ventures and providing managemen
Slide 35: For any enquiries, please contact
For any enquiries, please contact: Mr. David Oh, Investor Relations Manager Tel: +65 6745 3288 Email: david.oh@centurioncorp.com.sg Centurion Corporation Limited (http://www.centurioncorp.com.sg)