Centurion Corporation Limited · SGX:OU8
Centurion — H1 2020 Earnings Presentation
33 slides from Centurion's earnings presentation, Aug 12, 2020
Slide 1: Centurion Corporation Limited 1H 2020 Financial Results
Centurion Corporation Limited 1H 2020 Financial Results 12 August 2020
Slide 2: Disclaimer
DISCLAIMER This Presentation should be read in conjunction with the Company’s 1H 2020 Unaudited Financial Statement Announcement for the period ended 30 June 2020. This Presentation and the accompanying presentation materials (if any) ("Presentation") are made for informational purposes, without reg
Slide 3: Contents
CONTENTS Corporate Overview Financial Review Business Review Managing during the COVID-19 pandemic Centurion Corporation Limited 3
Slide 4: Key Performance Highlights
Key Performance Highlights 1H 2020 revenue is S$66.6m (+4% from S$64.2m in 1H 2019) due to: Strong 1Q 2020 revenue growth of +13% (Pre Covid-19) – resulted from new PBWA and PBSA assets added from Group’s expansion initiative in 2019 Revenue reverse in 2Q 2020 due to Covid-19 with decline of -
Slide 5: Accommodation Growth Profile
Accommodation Growth Profile 1 2 3 Note: 1. Includes Westlite Tuas which land lease had expired as of Jan 2018 | Includes 133-bed dwell Castle Gate Haus (14.3% owned interest) which acquisition was completed on 9 Nov 2018. 2. Includes 177-bed dwell Archer House acquired in Dec 2019 3. Includes Westl
Slide 6: Diversified Business Portfolio across Geography and Asset Type
Diversified Business Portfolio across Geography and Asset Type Geographic diversification across 6 countries worldwide (SG, AU, MY, UK, US, S. Korea) United Kingdom 2,852 beds United States South Korea 2,145 beds 208 beds Malaysia c.30,700 beds Singapore c.3,600 beds ^ c.28,000 beds 332 beds Austral
Slide 7: Diversified Business Portfolio by Asset Type and across Geographies
Diversified Business Portfolio by Asset Type and across Geographies Good diversification at asset class, country and asset levels PBWA PBSA 58,700 6,433 90% 10% # beds as at Singapore 1H 332 2020 5% US Australia 2,145 896 Malaysia Singapore 14% 28,000 33% 30,700 52% 48% S. Korea UK 208 2,852 3% 45%
Slide 8: Financial Review
Financial c Review _enturion
Slide 9: Financial Growth of Accommodation Business
Financial Growth of Accommodation Business Note: 1. From core business operations Centurion Corporation Limited 9
Slide 10: Financial Overview
Financial Overview S$’000 1H 2020 1H 2019 Change Revenue 66,590 64,192 4% Gross Profit 48,067 46,994 2% Gross profit margin 72% 73% -1pp Net Profit1 23,885 20,558 16% Net Profit (Equity holders)2 21,005 18,067 16% Net Profit Margin1 36% 32% 4pp Revenue growth in 1H 2020 mainly attributed to new pr
Slide 11: COVID-19 impact recorded from 2Q 2020
COVID-19 impact recorded from 2Q 2020 While 1H 2020 recorded growth in revenue and NPAT, 2Q 2020 recorded a reversal in performance, due to impact from COVID-19 additional operating expense, particularly in Singapore PBWA, by S$1.3m – manpower costs and costs relating to COVID-19 precautionary m
Slide 12: Segment Breakdown
Segment Breakdown Strong Accommodation Business Results in 1H 2020 S$’000 Accommodation Optical Disc Workers Students 1H 2020 1H 2019 Change 1H 2020 1H 2019 Change 1H 2020 1H 2019 Change Revenue 45,172 40,479 12% 21,068 22,992 -8% 350 721 -51% Segment Profit 27,010 25,273 7% 9,125 9,825 -7% 3 195 -9
Slide 13: Balance Sheet Highlights
Balance Sheet Highlights S$’000 30 Jun 2020 31 Dec 2019 Change % Cash & Bank Balances 65,082 48,588 + 34% Current Assets 101,513 78,052 + 30% Non Current Assets 1,390,431 1,400,915 - 1% Total Assets 1,491,944 1,478,967 + 1% Current Liabilities 87,897 110,106 - 20% Non Current Liabilities 785,144 754
Slide 14: Key Ratios
Key Ratios 1H 2020 FY 2019 Earnings Per Share1 2.5¢ 4.6¢ NAV per share 70.7¢ 70.4¢ Share Price 36.0¢3 44.5¢2 Dividend - 2.0¢ Dividend Payout Ratio - 43.5% Dividend Yield - 4.5% Market Capitalisation S$303m 3 S$374m 2 Note: 1. Excluding one-off items 2. As at 31 December 2019 3. As at 30 June 2020 Ce
Slide 15: Business Review
Business Review Centurion
Slide 16: COVID-19 impacted 2Q 2020: further headwinds expected due to COVID-19
COVID-19 impacted 2Q 2020: further headwinds expected due to COVID-19 • Group’s PBWA and PBSA businesses have been disrupted by COVID-19. o pressures experienced since 2Q 2020 o further headwinds expected and uncertainties remains • Operations impacted across all markets o travel bans and movement r
Slide 17: Purpose Built Workers Accommodation
Purpose Built Workers Accommodation
Slide 18: Workers Accommodation – Portfolio at a glance
Workers Accommodation – Portfolio at a glance 12 operating assets in SG and MY o 1 pipeline asset in MY, Westlite Tampoi II (3,600 beds) under development Country Facility Ownership / Capacity Lease / Start of lease / Managed by CCL (approx. no of Management management beds) contract tenure contra
Slide 19: Workers Accommodation Review & Landscape
Workers Accommodation Review & Landscape • Full economic impact of COVID-19 still to be seen, due to: o impact of virus control measures on employers’ businesses in short to medium term o anticipated changes in regulatory specifications for purpose built dormitories • Government’s Circuit Breaker co
Slide 20: Workers Accommodation Review & Landscape
Workers Accommodation Review & Landscape • Employers’ businesses disrupted in past months, further stressed with additional requirements for work resumption o pressure on workforce, accommodation needs, rental affordability and payment ability o safe living measures and cohorting requirements keep o
Slide 21: Workers Accommodation Landscape - SG: Demand and Supply
Workers Accommodation Landscape - SG Expected new supply of PBWA beds due to COVID-19^ Demand c.737K - Total Work Permit Holders, excluding Foreign Domestic Workers Workers from construction sector Workers from marine, oil & gas, petrochemical processing sectors Purpose Built Workers Non Purpose Bui
Slide 22: Workers Accommodation Review & Landscape
Workers Accommodation Review & Landscape • COVID 19 outbreak has not materially impacted PBWA operations o no Covid-19 cases in Westlite dormitories o Westlite Bukit Minyak, in ramp up stage when federal Movement Control Order (MCO) was implemented, restricted from accepting new occupants o expected
Slide 23: Workers Accommodation: Diversified, stable customer base
Workers Accommodation Diversified, stable customer base • more than 812 customers in Singapore and Malaysia • serves companies from diverse industries • ability to cater to multiple industries insulate the Group • less affected by economic fluctuations or government policies affecting any one indust
Slide 24: Purpose Built Student Accommodation
Purpose Built Student Accommodation
Slide 25: Student Accommodation Landscape
Student Accommodation Landscape • Over 1H 2020, all countries had implemented some extent of international travel bans or restrictions o almost all universities closed their campuses and moved curricula online o which led to many student-residents choosing to return home for the duration • Many univ
Slide 26: Student Accommodation – Portfolio at a glance
Student Accommodation – Portfolio at a glance 21 operating assets with 6,433 beds across SG, AU, UK, US and SK Country Facility Ownership Capacity Lease tenure Start of lease (approx. no of (no of years) (year) beds) dwell MSV 100% 1,017 Freehold dwell Cathedral Campus 100% 383 250 2007 dwell MSV
Slide 27: Student Accommodation – Portfolio at a glance (cont’d)
Student Accommodation – Portfolio at a glance (cont’d) 21 operating assets with 6,433 beds across SG, AU, UK, US and SK Country Facility Ownership Capacity Lease tenure Start of lease (approx. no of (no of years) (year) beds) dwell Logan Square 28.7% 642 Freehold dwell Tenn Street 28.7% 624 Freeho
Slide 28: Student Accommodation Landscape
Student Accommodation Landscape • UK government promised to support international students, with flexible immigration regulations and commitment that international students graduating from UK universities can receive 2-year post-study work visas • Some universities have announced campuses re-opening
Slide 29: Student Accommodation Landscape
Student Accommodation Landscape • dwell Selegie affected with a reduction in bed capacity from 332 to 240 beds in 2Q 2020, as required by the Singapore Land Authority ("SLA") o discussions in progress with SLA regarding space requirements and possible adjustments to capacity post-COVID • dwell Dongd
Slide 30: Managing during the COVID-19 pandemic
Managing during the COVID-19 pandemic 30
Slide 31: Managing during the COVID-19 pandemic
Managing during the COVID-19 pandemic Halted expansion and development plans until Covid-19 situation normalises • reconstruction of existing block in Westlite Toh Guan deferred • development of c.3,600 additional beds at Westlite Tampoi on hold • will still consider attractive opportunities when av
Slide 32: Managing during the COVID-19 pandemic
Managing during the COVID-19 pandemic In the long term • For the PBWA segment, demand is expected to stabilise in the long term o driven by continued demand for migrant workers and their accommodation needs ‒ the government has announced initiatives to develop 60,000 new beds in temporary facilities
Slide 33: Thank You
Thank You For any enquiries, please contact: Investor Relations Manager Mr George Goh [email protected] Tel: +65 6745 3288 W: www.centurioncorp.com.sg Centurion Corporation Limited (Incorporated in the Republic of Singapore with limited liability)