Global Investments Limited · SGX:B73
Global Investments — FY2018 Earnings Presentation
24 slides from Global Investments's earnings presentation, Feb 21, 2019
Slide 1: Global Investments Limited FY2018 Financial Results
Global Investments Limited (GIL or the Company) FY2018 Financial Results
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 Global Investments Limite
Slide 3: Agenda
AGENDA 1. Financial Highlights 2. Corporate Overview 3. Portfolio Overview 4. Outlook 3
Slide 4: Key Financial Highlights for 4Q 2018
1. Key Financial Highlights for 4Q 2018 Net Profit/(loss) after tax 4Q 18 4Q 171 Change Remarks S$’m S$’m (%) Net profit/(loss) after tax (0.9) 21.8 Nm2 The Company and its subsidiaries (the Group) reported a loss after tax of S$0.9 million in 4Q 2018 as compared to a profit after tax of S$21.8 mill
Slide 5: Key Financial Data for 4Q 2018
1. Key Financial Data for 4Q 2018 Expenses 4Q 18 4Q 171 Change Remarks S$’m S$’m (%) Management fees 0.5 0.6 (16.7) Total expenses for the current quarter was lower at S$1.2 million as compared to S$5.7 million in 4Q 2017. This was Incentive fees - (0.7) Nm2 largely due to net foreign exchange loss
Slide 6: Key Financial Data for 4Q 2018
1. Key Financial Data for 4Q 2018 Total comprehensive income 4Q 18 4Q 171 Change Remarks S$’m S$’m (%) Other comprehensive income Other comprehensive income for 4Q 2018 amounted to loss of Items that may be reclassified S$9.8 million due to a translation loss. In 4Q 2017, a loss of subsequently to p
Slide 7: Key Financial Highlights for FY 2018
1. Key Financial Highlights for FY 2018 Net Profit after tax FY 18 FY 171 Change Remarks S$’m S$’m (%) Net profit after tax 7.3 39.0 (81.0) For the year ended 31 December 2018, the Group reported a net profit after tax of S$7.3 million as compared to S$39.0 million recorded last year. Income FY 18 F
Slide 8: Key Financial Data for FY 2018
1. Key Financial Data for FY 2018 Expenses FY 18 FY 171 Change Remarks S$’m S$’m (%) Management fees 2.2 2.3 (4.3) Expenses for the current year of S$4.6 million was S$6.5 million lower than S$11.1 million recorded in last year. The Incentive fees - 4.2 Nm2 lower expense was mainly due to the absenc
Slide 9: Key Financial Data for FY 2018
1. Key Financial Data for FY 2018 Total comprehensive income FY 18 FY 171 Change Remarks S$’m S$’m (%) Other comprehensive income Other comprehensive income for the year ended 31 December Items that may be reclassified 2018 amounted to a loss of S$11.1 million due to a translation loss. subsequently
Slide 10: Statement of Financial Position
Statement of Financial Position Group as at Group as at Change 31 Dec 2018 31 Dec 20171 Remarks % S$’m S$’m Assets Non-current assets Loans and receivables Following the adoption of IFRS 9 on 1 Jan 2018, debt securities held as loans - 35.6 Nm2 and receivables will be reclassified to financial asset
Slide 11: Statement of Financial Position
Statement of Financial Position Net asset value FY 18 FY 17 Change Remarks (%) Net asset value per share 0.1869 0.2014 (7.2) The net asset value per share of the Group as at 31 (S$ per share) December 2018 was 18.69 Singapore cents after the payment of 2017 final dividend of 0.60 Singapore cents per
Slide 12: Statement of Financial Position
Statement of Financial Position Return on Equity FY 18 FY 17 Change Remarks % % (%) Return on Equity 2.2 12.1 (81.8) The Group achieved a lower return on equity (computed based on net profit after tax over the average total equity) of 2.2% in 2018 as compared to 12.1% in 2017 due to lower profit aft
Slide 13: Agenda
AGENDA 1. Financial Highlights 2. Corporate Overview 3. Portfolio Overview 4. Outlook 13
Slide 14: Corporate Overview
2. Corporate Overview Re-domiciliation from Bermuda to Singapore In April 2018, GIL embarked on the journey to transfer its domicile from Bermuda to Singapore (Re- domiciliation) after Singapore became the appointed jurisdiction for outward-re-domiciliation in Bermuda. The resolutions in relation to
Slide 15: Corporate Overview
2. Corporate Overview Appointment of Independent Director Mr Abdul Jabbar Bin Karam Din was appointed as an Independent Director on 7 January 2019. Striking-off of Dormant Subsidiary The Group’s dormant wholly-owned subsidiary, BBSFF EU Rail Lessor Limited, which was incorporated in the Cayman Islan
Slide 16: Corporate Overview
2. Corporate Overview Extension of Conferment of Honorary Counsel Mrs Goh Mui Hong had accepted the extension of the conferment of the title of Honorary Counsel for a further period of two years which commenced from 29 October 2018. 2018 Dividends Interim dividend for FY2018 of 0.50 Singapore cents
Slide 17: Agenda
AGENDA 1. Financial Highlights 2. Corporate Overview 3. Portfolio Overview 4. Outlook 17
Slide 18: Portfolio Composition (By Asset Class)
3. Portfolio Composition (By Asset Class*) Change In As At 31 As At 31 Asset Class Percentage December 2018 December 2017 Point Loan Portfolio And 5.9% 9.1% ▼ 3.2 Securitisation Assets China Domestic Bonds 17.3% - ▲ 17.3 Other Bonds 14.4% 19.2% ▼ 4.8 Bank Contingent 35.8% 32.8% ▲ 3.0 Convertibles Li
Slide 19: Portfolio Composition (By Currency Exposure)
3. Portfolio Composition (By Currency Exposure*) Change In As At 31 December As At 31 December Currency Percentage 2018 2017 Point USD 29.4% 27.8% ▲ 1.6 SGD 24.1% 30.9% ▼ 6.8 CNH/CNY 20.5% 1.2% ▲ 19.3 HKD 10.0% 8.1% ▲ 1.9 AUD 7.8% 8.1% ▼ 0.3 EUR 6.3% 20.2% ▼ 13.9 OTHERS 1.9% 3.7% ▼ 1.8 * Percentage
Slide 20: Agenda
AGENDA 1. Financial Highlights 2. Corporate Overview 3. Portfolio Overview 4. Outlook 20
Slide 21: Outlook
4. Outlook Loan Portfolio and Securitization Assets Closer to the end of 2018, dovish shifts in interest rate expectations and increasing US recessionary risks led to a record outflow from loan funds. CLO debt spreads ended the year wider as a result of the US leveraged loan market sell-off. Looking
Slide 22: Outlook
4. Outlook Other Bonds While Moody's global trailing 12-month speculative-grade default rate ended 2018 at 2.3%, down from 2.8% in 2017, credit spreads ended the year materially wider than start of the year as monetary policies tightened and risk sentiments turned weaker on slowing growth expectatio
Slide 23: Outlook
4. Outlook Listed Equities Major equity markets saw a major sell-off in 4Q 2018. The MSCI All Country World Index, which tracks the global equity markets across both developed and emerging markets, decreased by 13.08% in USD terms in 4Q 2018. Weaker outlook for corporate earnings growth can potentia
Slide 24: Outlook
4. Outlook Future Direction and Growth Strategy of GIL To grow its assets and seek new investments that will generate steady income and potential appreciation in capital to deliver regular dividends and achieve capital growth. Active management of GIL’s assets with focus on optimizing risk-adjusted