First Sponsor Group Ltd · SGX:ADN
First Sponsor — H2 2022 Earnings Presentation
54 slides from First Sponsor's earnings presentation, Feb 17, 2023
Slide 1: First Sponsor Group Limited Investor Presentation
First Sponsor Group Limited Investor Presentation 17 February 2023 Artist’s impression. Luwan Garden, Wanjiang, Dongguan.
Slide 2: Contents
Contents Page Section 1 Key Message 3 Section 2 Financial Updates 2H2022 8 Section 3 Business Updates 2H2022 – Property Development 17 Section 4 Business Updates 2H2022 – Property Holding 39 Section 5 Business Updates 2H2022 – Property Financing 49 2
Slide 3: Section 1 Key Message
Section 1 Key Message 3
Slide 4: Key Message
Key Message 1. For 2H2022, the Group achieved a net profit of S$59.9 million, a 14.1% growth from 2H2021. While the Group’s pre-tax profit for FY2022 of S$195.7 million was 3.4% lower than that for FY2021, the Group achieved a net profit of S$131.3 million for FY2022, an 8.1% growth from FY2021.The
Slide 5: Key Message
Key Message 3. Dongguan, Guangzhou and Chengdu underwent several sporadic Covid-19 related lockdowns during FY2022, especially in 4Q2022. Such lockdowns adversely affected pre-sales of the Group’s development projects. Nevertheless, the 17.3%-owned Humen Time Zone achieved good residential pre-sale
Slide 6: Key Message
Key Message 4. On 23 December 2022, the Group completed the acquisition of a dated freehold commercial property located in Amsterdam at an all-in purchase price of €11.5 million. The property, which comprises four adjacent monumental buildings with a total lettable floor area of approximately 3,000
Slide 7: Key Message
Key Message 6. The aggregate outstanding amount under the RMB280 million defaulted loan was RMB130.4 million as at 31 December 2022. A net impairment charge of RMB82.0 million, which effectively relates to the interest recognised on the loan but not collected, was recognised in FY2022. No impairment
Slide 8: Section 2 Financial Updates 2H2022
Section 2 Financial Updates 2H2022 8
Slide 9: Statement of Profit or Loss - Highlights
2.1 Statement of Profit or Loss - Highlights Statement of Profit or Loss - Highlights In S$’000 2H2022 2H2021 Change % FY2022 FY2021 Change % Revenue 312,239 432,412 (27.8%) 427,493 589,170 (27.4%) Gross profit 139,863 170,066 (17.8%) 206,091 241,316 (14.6%) Profit before tax 110,831 128,976 (14.1%)
Slide 10: Statement of Profit or Loss – Revenue
2.2 Statement of Profit or Loss – Revenue Revenue S$ Millions S$589.2m S$ Millions 450 S$432.4m 600 -27.4% 119.0 400 64.4 - 27.8% 500 350 33.9 S$427.5m S$312.2m 55.1 300 34.0 400 73.3 Property Property Financing Financing 250 93.4 Property 300 148.3 Property 200 Holding Holding 334.1 150 Property 20
Slide 11: Statement of Profit or Loss – Gross Profit
2.3 Statement of Profit or Loss – Gross Profit Gross Profit S$ Millions S$ Millions 180 S$170.1m 250 S$241.3m -17.8% -14.6% 160 S$139.9m S$206.1m 140 57.6 200 23.7 106.0 120 58.4 11.3 Property 150 Property 100 36.1 Financing Financing 16.1 80 Property 56.9 Property Holding 100 Holding 60 101.2 Prope
Slide 12: Statement of Profit or Loss – 2H2022 vs 2H2021
2.4 Statement of Profit or Loss – 2H2022 vs 2H2021 140 The decrease in profit before tax was due mainly to: • Lower gross profit contribution from the PD and PF S$ Millions - 14.1% 120 businesses [S$63.7m decrease] 100 • Higher non-cash impairment of real estate related assets [S$38.9m decrease] 80
Slide 13: Statement of Profit or Loss – FY2022 vs FY2021
2.5 Statement of Profit or Loss – FY2022 vs FY2021 The decrease in profit before tax was due mainly to: 220 • Lower gross profit contribution from the PD and PF -3.4% businesses [S$84.7m decrease] S$ Millions 200 180 • Higher non-cash impairment of real estate related assets 160 [S$38.9m decrease] 1
Slide 14: Statement of Financial Position – Highlights
2.6 Statement of Financial Position – Highlights Statement of Financial Position - Highlights In S$'000 31-Dec-22 30-Jun-22 Change % Total assets 4,338,114 4,418,557 (1.8%) Cash and structured deposits (1) 270,263 687,140 (60.7%) Total debt (2) 1,008,386 1,027,867 (1.9%) Net asset value (NAV) (3) 1,
Slide 15: Statement of Financial Position - Total Assets
2.7 Statement of Financial Position - Total Assets Total Assets – by business and geographic segments As at 31 December 2022 As at 30 June 2022 Total assets: S$4,338m Total assets: S$4,419m others 3.1%* other regions others 2.9% * 2.9% other regions PF (EU) PF (EU) 2.2% 9.5% 9.7% PH(EU) EU 15.9% PH
Slide 16: Debt Maturity and Composition as at December 2022
2.8 Debt Maturity and Composition as at 31 December 2022 Debt composition (all unsecured) S$1,018.7m 1,000 floating 27% S$1,018.7m 800 fixed* 73% 643.3m S$ Millions 600 * Mainly via cross currency swaps and medium term notes. 400 643.3m 273.2m 200 273.2m 102.2m 102.2m Debt - maturity Debt drawndown^
Slide 17: Section 3 Business Updates 2H2022 – Property Development
Section 3 Business Updates 2H2022 – Property Development 17
Slide 18: Ongoing PRC Projects (1 of 2)
3.1 Property Development – Ongoing PRC Projects (1 of 2) Total In units (unless otherwise specified) % of Average Land cost Equity Project Type saleable Launched selling price RMB psm ppr % GFA (sqm) Total Launched Sold sold 1 (RMB psm) (Date of Entry) The Pinnacle, Residential 63,600 606 606 606 10
Slide 19: Ongoing PRC Projects (2 of 2)
3.1 Property Development – Ongoing PRC Projects (2 of 2) Total In units (unless otherwise specified) % of Average Land cost Equity Project Type saleable Launched selling price RMB psm ppr % GFA (sqm) Total Launched Sold sold 1 (RMB psm) (Date of Entry) Cuilong Bay, 14,600 7 46.6% Residential 147,600
Slide 20: The Pinnacle, Chang'an, Dongguan (60%-owned)
3.2 Property Development – The Pinnacle, Chang’an, Dongguan (60%-owned) Subsequent to the first handover of six of the eight fully sold residential apartment blocks in December 2021, the remaining two fully sold residential apartment blocks were handed over in late September 2022. Handover of the
Slide 21: Skyline Garden, Wanjiang, Dongguan (27%-owned)
3.3 Property Development – Skyline Garden, Wanjiang, Dongguan (27%-owned) Residential Blocks Total five blocks of 1,194 units (131,900 sqm) Four blocks of 830 units (94,600 sqm) were 100% sold while the last block of 364 units (37,300 sqm) was ~100% sold Skyline Garden commenced its first hand
Slide 22: Time Zone, Humen, Dongguan (17.3%-owned)
3.4 Property Development – Time Zone, Humen, Dongguan (17.3%-owned) Three Office Towers (198,100 sqm) A grade-A tower with approx. 650 office units (84,800 sqm) and two towers with approx. 940 office units (113,300 sqm) Four SOHO cum Hotel Blocks (308,900 sqm) Four blocks of approx. 6,370 SOHO u
Slide 23: Time Zone, Humen, Dongguan (17.3%-owned)
3.4 Property Development – Time Zone, Humen, Dongguan (17.3%-owned) Humen Train Station Metro Station The 17.3%-owned Humen Time Zone achieved good residential pre-sale results with 69% of the 1,886 launched units from Phase 1.1 and Phase 1.2 sold as at 31 December 2022, out of which 841 units wer
Slide 24: Time Zone Phase 1.1 (17.3%-owned)
3.4 Property Development – Time Zone Phase 1.1 (17.3%-owned) All six residential blocks and two SOHO loft blocks in Phase 1.1 have been launched for pre-sales and achieved sales rates of 72% and 96% respectively. Barring any unforeseen circumstances, Phase 1.1 is expected to commence its first h
Slide 25: Time Zone Phase 1.2 (17.3%-owned)
3.4 Property Development – Time Zone Phase 1.2 (17.3%-owned) Two SOHO Loft Blocks (504 units, 42,800 sqm) The SOHO units were sold at an average selling price of approximately RMB17,500 psm Seven Residential Blocks (1,110 units, 138,000 sqm) The residential units were sold at an average selling
Slide 26: Oasis Mansion, Humen, Dongguan (48.2%-owned)
3.5 Property Development – Oasis Mansion, Humen, Dongguan (48.2%-owned) The 48.2%-owned Humen Oasis Mansion, which launched its first pre-sale of residential units on 31 March 2022, saw healthy pre-sales with approximately 63% of the 318 launched units (excluding the units of the fourth residentia
Slide 27: Central Mansion, Humen, Dongguan (36%-owned)
3.6 Property Development – Central Mansion, Humen, Dongguan (36%-owned) The 36%-owned Humen Central Mansion launched its first pre-sale of two residential apartment blocks comprising 156 units on 31 December 2022, and achieved a modest result of 21 units sold to-date at an average selling price of
Slide 28: Fenggang Project, Dongguan (18%-owned)
3.7 Property Development – Fenggang Project, Dongguan (18%-owned) The resettlement exercise is on-going. There are three remaining inhabitants who have not agreed on the resettlement compensation terms. Status in Oct-2022 Approval for the re-zoning application is expected to be obtained in 2Q202
Slide 29: Primus Bay, Panyu, Guangzhou (95%-owned)
3.8 Property Development – Primus Bay, Panyu, Guangzhou (95%-owned) Pre-sale for the first three residential apartment blocks (177 units) of Primus Bay has been moving at a slow pace since its launch on 26 May 2022 as Guangzhou has not implemented housing policy relaxation similar to that seen in
Slide 30: Cuilong Bay, Dalingshan, Dongguan (46.6%-owned)
3.9 Property Development – Cuilong Bay, Dalingshan, Dongguan (46.6%-owned) After the acquisition of Cuilong Bay via a public land tender exercise held on 24 June 2022, construction commenced in August 2022. Barring any unforeseen circumstances, the predominantly residential project, which compri
Slide 31: Luwan Garden, Wanjiang, Dongguan (27%-owned)
3.10 Property Development – Luwan Garden, Wanjiang, Dongguan (27%-owned) Luwan Garden, which was also acquired via a public land tender exercise held on 24 June 2022, is the third JV development project with China Poly. Construction for this predominantly residential project with approximately 3
Slide 32: The Brilliance, Shilong, Dongguan (100%-owned)
3.11 Property Development – The Brilliance1, Shilong, Dongguan (100%-owned) The Brilliance, which was acquired via a public land tender exercise held on 30 August 2022, is situated less than 500 metres from the Dongguan Train Station and is adjacent to a future transit oriented development (TOD) m
Slide 33: Shijie Land, Dongguan (50%-owned)
3.12 Property Development – Shijie Land, Dongguan (50%-owned) Shijie Land, which was acquired via a public tender exercise held on 30 August 2022, is a joint venture project with New Century, an existing JV partner in the redevelopment of the Dongguan East Sun Wentang Recycling Factory. Construc
Slide 34: Millennium Waterfront Plot E, Wenjiang, Chengdu (100%-owned)
3.13 Property Development – Millennium Waterfront Plot E, Wenjiang, Chengdu (100%-owned) The Group is expected to launch the first pre-sale of one SOHO block of 1,175 units at Plot E Phase 1 of the Millennium Waterfront project in the coming months. Barring any unforeseen circumstances, the hand
Slide 35: Dreeftoren Redevelopment, Amsterdam (100%-owned)
3.14 Property Development – Dreeftoren Redevelopment, Amsterdam (100%-owned) Artist’s impression The redevelopment project comprises a newly refurbished New residential tower and enlarged 18-storey office tower (GFA: 20,231 sqm, including commercial plinth), a new 130-metre high Refurbished reside
Slide 36: Meerparc Redevelopment, Amsterdam (100%-owned)
3.15 Property Development – Meerparc Redevelopment, Amsterdam (100%-owned) In December 2017, the Group acquired Meerparc, a freehold property with a substantial office component (GFA of 19,130 sqm) located in the Amsterdam South-Axis, the central business district of Amsterdam. The Group is work
Slide 37: 16-19 Prins Hendrikkade, Amsterdam (100%-owned)
3.16 Property Development – 16-19 Prins Hendrikkade, Amsterdam (100%-owned) On 23 December 2022, the Group completed the acquisition of a dated freehold commercial property located in Amsterdam at an all-in purchase price of €11.5 million. The property, which comprises four adjacent monumental b
Slide 38: City Tattersalls Club (CTC) Project, Sydney (39.9%-owned)
3.17 Property Development – City Tattersalls Club (“CTC”) Project, Sydney (39.9%-owned) For the CTC project in Sydney, the 39.9%-owned developer trust has entered into exclusive negotiations with a potential main contractor for the project. In order to manage the risk of increasing 241 Residenti
Slide 39: Section 4 Business Updates 2H2022 – Property Holding
Section 4 Business Updates 2H2022 – Property Holding 39
Slide 40: FY2022 Non-Cash Fair Value Adjustments/Impairment Charges
4.1 Property Holding – FY2022 Non-Cash Fair Value Adjustments/Impairment Charges Asset level Fair Value Share Impact to the In S$’000 (Impairment)/Gain % Group's Net Profit European Office Portfolio (62,172) (15,223) - Berg & Bosch Bilthoven (1,504) 33% (368) - Mondriaan Tower Amsterdam (12,339) 33%
Slide 41: European Property Portfolio Operating Performance
4.2 Property Holding – European Property Portfolio Operating Performance In €'000 2H2022 2H2021 Change % FY2022 FY2021 Change % FY2019 (1) Dutch office income 9,612 9,839 (2.3%) 18,858 19,968 (5.6%) (1) 15,853 European hotel income 15,682 8,494 84.6% 23,817 5,227 355.7% 26,769 (2) - Operating hotels
Slide 42: Dutch Bilderberg Hotel Portfolio (95%-owned)
4.3 Property Holding – Dutch Bilderberg Hotel Portfolio (95%-owned) Bilderberg 2H2022 2H2021 Change 2H2019 FY2022 FY2021 FY2019 Hotel Portfolio 1 Occupancy 65.1% 52.1% 13.0% 74.2% 58.2% 37.3% 69.7% ADR € 117.3 € 102.0 15.0% € 103.2 € 114.7 € 100.7 € 103.3 RevPAR € 76.4 € 53.1 43.8% € 76.5 € 66.8 € 3
Slide 43: Dutch Bilderberg Hotel Portfolio (95%-owned)
4.3 Property Holding – Dutch Bilderberg Hotel Portfolio (95%-owned) (in million €) 2H2022 2H2021 Change 2H2019 FY2022 FY2021 FY2019 Revenue 32.3 23.4 38.1% 33.8 56.8 32.4 63.5 EBITDA 5.4 5.9 (7.9%) 8.2 7.8 2.1 12.5 Government Subsidies - 3.0 (100.0%) - 1.4 6.1 - Energy Cost 2.3 0.9 151.2% 1.0 5.0 1.
Slide 44: Hilton Rotterdam, the Netherlands (33%-owned)
4.4 Property Holding – Hilton Rotterdam, the Netherlands (33%-owned) (in million €) 2H2022 2H2021 Change 2H2019 FY2022 FY2021 FY2019 Revenue 7.1 3.0 135.9% 6.8 12.4 4.4 13.4 EBITDA/(LBITDA) 2.1 (0.4) 578.2% 2.2 3.1 (0.6) 4.0 Government Subsidies 0.4 - n.m. - 0.7 1.3 - Energy Cost 0.6 0.2 282.2% 0.2
Slide 45: Utrecht Centraal Station Hotels, the Netherlands (100%-owned)
4.5 Property Holding – Utrecht Centraal Station Hotels, the Netherlands (100%-owned) (in million €) 2H2022 2H2021 Change 2H2019 FY2022 FY2021 FY2019 Revenue 7.2 2.5 192.9% 12.1 2.9 Hotels not Hotels not EBITDA 2.4 0.2 n.m. fully 4.0 0.1 fully Government Subsidies (0.1) - n.m. opened for 0.2 0.8 open
Slide 46: Le Méridien Frankfurt, Germany (50%-owned)
4.6 Property Holding – Le Méridien Frankfurt, Germany (50%-owned) 11 1 (in million €) 2H2022 2H2021 Change 2H2019 FY2022 FY2021 FY2019 Revenue 7.7 3.6 112.3% 8.0 12.8 4.4 16.3 EBITDA/(LBITDA) 1.7 (0.6) 388.3% 2.2 2.0 (1.5) 4.4 Government Subsidies - 0.2 (100.0%) - 0.2 1.1 - Energy Cost 0.5 0.3 77.0%
Slide 47: Bilderberg Bellevue Hotel Dresden, Germany (94.9%-owned)
4.7 Property Holding – Bilderberg Bellevue Hotel Dresden, Germany (94.9%-owned) (in million €) 2H2022 2H2021 Change 2H2019 FY2022 FY2021 FY2019 Revenue 7.9 5.6 39.6% 6.0 12.6 7.4 11.2 EBITDA 2.0 1.4 44.9% 1.3 2.7 1.0 2.0 Government Subsidies - 0.1 (100.0%) - 0.2 0.8 - Energy Cost 0.7 0.4 84.4% 0.4 1
Slide 48: Chengdu Wenjiang hotels (100%-owned)
4.8 Property Holding – Chengdu Wenjiang hotels (100%-owned) Crowne Plaza Chengdu Wenjiang and Holiday Inn Express Chengdu Wenjiang Hotspring Hotels, PRC Due to the resurgence of Covid-19 cases in Chengdu, both the Crowne Plaza and Holiday Inn Express hotels were selected by the local municipal for
Slide 49: Section 5 Business Updates 2H2022 – Property Financing
Section 5 Business Updates 2H2022 – Property Financing 49
Slide 50: Property Financing - Overview of Financial Performance
5.1 Property Financing - Overview of Financial Performance Fr Below In S$’000 2H2022 2H2021 Change % FY2022 FY2021 Change % (adjusted) (adjusted) (1) (2) (2) (2) (2) Secured PRC PF debt 15,372 40,935 (62.4%) 40,066 74,656 (46.3%) PF loans to the Group's members - European associates and JV (3) 8,696
Slide 51: Property Financing – PRC Loan Book
5.2 Property Financing – PRC Loan Book Average PRC PF loan book * PRC PF loan book as at for the year to date ended RMB1,623.5m RMB814.1m 31 December 2022 (S$332.7m) (S$157.3m) RMB1,848.4m RMB1,215.4m 30 September 2022 (S$385.4m) (S$245.0m) * PRC PF loan book as at 31 December 2022 excludes any bala
Slide 52: Update on the RMB330m PRC Defaulted Loans
5.3 Property Financing – Update on the RMB330m PRC Defaulted Loans RMB50m RMB280m Overall Pudong Villa Pudong Mall RMB330m (Figures in RMB'm) Mortgaged Loan Mortgaged Loan Defaulted Loan Outstanding debt (62.1) (375.3) (437.4) [A] ● Loan principal (50.0) (280.0) ● Default and penalty Interest (12.1)
Slide 53: Thank You
Thank You For enquiries, please contact: Mr Leonard Gerk Senior Vice President – Financial Planning & Analysis First Sponsor Group Limited Email: ir@1st-sponsor.com.sg 53
Slide 54: Disclaimer
Disclaimer This document may contain forward-looking statements that involve assumptions, risks and uncertainties. Actual future performance, outcomes and results may differ materially from those expressed in forward-looking statements as a result of a number of risks, uncertainties and assumptions.