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Centurion Corporation Limited 2Q & 1H 2015 Financial Results 12 August 2015
Centurion Corporation Limited
2Q & 1H 2015 Financial Results12 August 2015
Disclaimer
This presentation should be read in conjunction with the Company’s 2Q and 1H 2015
Unaudited Financial Statement Announcement for the period ended 30 June 2015.
This presentation and the accompanying presentation materials (if any) ("Presentation") are made
for informational purposes, without regard to the objectives, financial situation nor needs of any
specific persons.
The Presentation does not constitute, or form any part of any offer for sale of or subscription of, or
solicitation of any offer to buy or subscribe for, any securities nor shall it, or any part of it form the
basis of, or be relied on in connection with, any contract or commitment whatsoever.
The Presentation was prepared exclusively for the parties presently being invited for the purposes
of discussion. Neither the Presentation nor any of its content be distributed, reproduced or used
without the prior written consent of Centurion Corporation Limited ('"Company"). The Company does
not make any representation or warranty, express or implied, as to the accuracy of the information
contained herein, and expressly disclaim any and all liability based, in whole or in part, on such
information, errors therein or omissions therefrom.
The Presentation includes forward-looking statements provided with respect to the anticipated
future performance of the Company. Such forward-looking statements reflect various assumption of
the management concerning the future performance of the Company. Accordingly, there can be no
assurance that such projections and forward-looking statements will be realised. The actual results
may vary from the anticipated results and such variation may be material. No representations or
warranties are made as to the accuracy or reasonableness of such assumptions or the forward-
looking statements based thereon.
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Key Highlights
Financial Review
Business Review
Conclusion
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Contents
Strong performance with 45% growth in 1H 2015 Net Profit (from core
business ops) to S$19.0 mil y-o-y
Driven by 47% growth in revenue from Accommodation Business y-o-y
Generate stable and strong operating cash of $29.3 million in 1H 2015
Plan to pay dividend on half-yearly basis, declare interim dividend of 0.5
Singapore cent per share for 1H 2015
4
Key Highlights
2Q 2015
Total Revenue +33% to S$26.4 mil y-o-y
Net Profit +28% to S$9.8 mil y-o-y
Net Profit (from core business ops) +30% to S$9.8 mil y-o-y
1H 2015
Total Revenue +38% to S$51.7 mil y-o-y
Net Profit -37% to S$19.0 mil y-o-y
Net Profit (from core business ops) +45% to S$19.0 mil y-o-y
Contribution largely from student accommodation assets in the United Kingdom.
Increase in bed occupancy at Westlite Toh Guan since expansion of bed capacity in
Jan 2014.
Improvement in occupancy and rental rates for workers accommodation in Malaysia.
Increase in bed capacity - Westlite Tampoi TOP in Jan 2015.
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Key Highlights – Financials
Won a tender in May 2015 to operate CSL Selegie
Refurbishment works in progress, expected to be completed in 4Q 2015
Westlite Woodlands achieved TOP in Jul 2015
Issuance of S$65 million 5.25% fixed rates notes in Jul 2015
Second issue under the Group’s S$500 million MTN Programme
2.6 times over-subscribed from the initial target size of S$50 million
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Key Updates
Financial Review
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8
S$’000 2Q 2015 2Q 20142 Change 1H 2015 1H 20142 Change
Revenue 26,391 19,880 + 33% 51,672 37,439 + 38%
Profit from
Continuing
Operations
9,827 7,540 + 30% 19,030 30,375 - 37%
Profit from Core
Business
Operations
9,827 7,540 + 30% 19,030 13,082 + 45%
Net Profit Margin (Based on profit from
core business
operations)
37% 38% - 1pp 37% 35% + 2pp
Note:
1. Net Profit = Profit from core business operations
2. Comparative figures 2014 are re-presented due to discontinued operations of the Group’s Australian optical disc business which was sold
during FY 2014.
Key FinancialsGroup Net Profit1 increased by 30% to 9.8m in 2Q 2015 (Recurring - Exclude one off items)
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Segment BreakdownStrong Accommodation Business Results in 2Q 2015 (Recurring - Exclude one off items)
* Net Profit = Profit from core business operations.
S$’000
2Q 2015 2Q 2014 Change 2Q 2015 2Q 2014 Change 2Q 2015 2Q 2014 Change
Revenue 17,469 15,387 14% 7,434 2,440 205% 1,488 2,053 -28%
Net Profit * 7,304 6,596 11% 2,556 1,047 144% -33 -103 -68%
Net Profit Margin 42% 43% - 1pp 34% 43% - 9pp -2% -5% + 3pp
Optical Disc
Workers Students
Accommodation
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Segment BreakdownStrong Accommodation Business Results in 1H 2015 (Recurring - Exclude one off items)
* Net Profit = Profit from core business operations.
S$’000
1H 2015 1H 2014 Change 1H 2015 1H 2014 Change 1H 2015 1H 2014 Change
Revenue 34,519 29,398 17% 14,143 3,636 289% 3,010 4,405 -32%
Net Profit * 14,178 11,880 19% 4,565 1,160 294% 287 42 583%
Net Profit Margin 41% 40% +1pp 32% 32% 0% 10% 1% + 9pp
Accommodation Optical Disc
Workers Students
S$’000 30 Jun 2015 31 Dec 2014 Change %
Cash & Cash Equivalents 80,638 63,144 + 28%
Current Assets 91,706 82,446 + 11%
Non Current Assets 938,283 791,587 + 19%
Current Liabilities 78,289 70,988 + 10%
Non Current Liabilities 552,075 411,485 + 34%
Net Assets 399,625 391,560 + 2%
Gearing Ratio1 59% 52% + 7pp
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Balance Sheet Highlights
Note:
1. The gearing ratio is computed as borrowings divided by total capital. Total capital is calculated as borrowings plus net
assets of the Group.
1H 2015 FY 2014
Earnings Per Share 2.6¢ 14.7¢
Earnings Per Share
(Excluding fair value gains & trading profit)2.6¢ 4.1¢
Share Price 53.0¢1 50.5¢2
Dividend 0.5¢3 1.5¢4
NAV per share 52.7c¢ 51.6¢
Market Capitalisation S$401m 1 S$382m 2
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Key Ratios
Note:
1. As at 30 June 2015
2. As at 31 December 2014
3. Interim dividend of 0.5 cent per share for 1H 2015
4. Comprising special dividend of 0.5 cents per share for FY 2014
Business Review
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Workers Accommodation
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• Foreign Workers 760,000 (1.2% marginal growth from 2013)
• 30,000 beds1 opened between 4Q 2014 to 1H 2015
• 18,000 beds1 may enter the market in phases for 2H 2015
• 10,000 beds1 expired and not renewed in 2015
• Total shortage of 230,000 beds1 for PBWA2
• Foreign Employee Dormitories Act 2015 may come into effect in 4Q 2015
Singapore
• Lack of proper foreign workers housing policies
• Government taking measures to reduce illegal foreign workers
• 1.5 million workers from Bangladesh may be brought into Malaysia in stages over 3 years to meet the demands from employers from various sectors
Malaysia
Workers Accommodation Landscape
Note:
1. Approximately, based on Centurion Corp research
2. After taking into consideration of the total number of PBWA beds that are expected to enter the market and those that will expire over
the next 1.5 years.
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PENANG
Singapore
Johor
Penang
- operational assets
- projects under development/planning
ISKANDAR DEVELOPMENT REGION
JOHOR & SINGAPORE
Workers Accommodation Portfolio
Workers Accommodation - Singapore
3 operating assets and 2 under development
Current capacity of 23,500 beds; 12,000 beds under development
On a portfolio basis, assets are achieving high occupancy rates
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Westlite Tuas
Purpose built accommodation
Temporary prefabricated steel
structure
Capacity of 8,600 beds on short
term BCA lease (<2 years
remaining)
Mainly for construction workers
(25% for workers in other industries)
Westlite Mandai (45% owned)
Purpose built accommodation
Capacity of 6,300 beds on freehold
land
Officially opened in April 2014
Caters to workers in all industries
Purpose built accommodation
Capacity of 8,600 beds on leasehold
land (43 years remaining)
Upgrading completed in January
2014
Caters to workers in all industries
Westlite Toh Guan
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Westlite Woodlands
Tender awarded by Jurong Town
Corporation in Sep 2013
Land tenure of 30 years
4,100 beds purpose-built workers
accommodation
Caters to process, marine and
manufacturing industries
25% for workers in other industries
Update: TOP obtained in July 2015
Pipeline Projects 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 of the fast growing
chemical industry
Land tenure of 23 years
Estimated completion by mid-2016
Note: Images are artist impression for illustrative purposes only
Workers Accommodation – Malaysia
6 operating assets and 3 under development/planning
Current capacity of 19,800 beds; 5,500 beds under development; 17,000 beds
under planning
On a portfolio basis, the Malaysian assets are achieving high occupancy rates
Operating Accommodation
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Opened in: Sep 2013
Capacity: 2,600 beds
Land: Freehold
Westlite Senai
Opened in: Apr 2012
Capacity: 2,500 beds
Land: 60 yrs wef 2000
Westlite Tebrau
Opened in: Jul 2012
Capacity: 5,800 beds
Land: 99 yrs wef 2011
Westlite Johor Tech Park
Opened in: Jun 2012
Capacity: 1,600 beds
Land: Freehold
Westlite Cemerlang
Opened in: Dec 2012
Capacity: 2,000 beds
Land: 99 yrs wef 1986
Westlite Pasir Gudang Westlite Tampoi
Opened in: Jan 2015
Capacity: 5,300 beds
Land: Freehold
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Westlite Senai II
Under construction
Freehold land
Estimated capacity: 5,500 beds
Estimated completion in 4Q 2015
Pipeline Projects Under Development / Planning
Westlite Bukit Minyak
Under planning
Freehold land
Estimated capacity: 5,000 beds
Estimated completion in 2017
Westlite Juru
Under planning
Land tenure of 99 yrs
Estimated capacity: 12,000 beds (Phase 1: 6,000 beds, Phase 2:
6,000 beds)
Estimated completion: Phase 1 in
2017
Note: Images are artist impression for illustrative purposes only
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Student Accommodation
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• Total student numbers of 1.3 million grew 4.5% from 20131
• c.347,500 full time international students1 grew 5.8%
• c.1,025,000 local students1 grew 4.1%
• Strong demand for high-quality, purpose built student accommodation
Australia
• Total student numbers stable at c.2.3 million
• Demand from c.435,500 full time international students2 grew by 3%
• Strong demand for high-quality, purpose built student accommodation
United Kingdom
• Good captive market of international students from well established institutions such as SMU, LASALLE, NAFA and Kaplan
• Safe and secure environment, regional magnet for students seeking quality education
Singapore
1. Australian Government Department of Education and Training 2014, http://docs.education.gov.au/system/files/doc/other/2014_student_summary.pdf
2. Higher Education Statistics Agency UK 2014, https://www.hesa.ac.uk/free-statistics
Student Accommodation Landscape
RMIT Village, Melbourne
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rmit village
Liverpool Manchester
United Kingdom Australia
Student Accommodation Portfolio
Total operational capacity of 2,362 beds (2,677 beds if including CSL Selegie)
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
Completed rooms refurbishment in Jan 2015
Close to full occupancy rate
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RMIT Village
A portfolio of 4 student accommodation assets comprising
1,906 beds
3 properties located in Manchester and 1 located in
Liverpool, all strategically located to access university
campuses and the city centre
o Manchester - University of Manchester, Manchester Metropolitan
University
o Liverpool - Liverpool John Moores University, Liverpool Institute
of Performing Arts
Close to full occupancy rate
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UK Student Accommodation Portfolio
Manchester Student Village Manchester Student Village South The Grafton Cathedral Campus
Liverpool
Manchester
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 of the Arts, Nanyang Academy of Fine Arts, School of
the Arts Singapore and Kaplan
Refurbishment in progress, expected to be operational in 4Q 2015
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Singapore Student Accommodation
Selegie
CSL Selegie
Accommodation Growth Profile1
5,30013,900
19,700 23,50027,600
35,500 35,50010,900
13,50014,500
25,300
25,300
36,300
456
456
456
456
315
315
315
1,906
1,906
1,906
1,906
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
5,300 24,800 33,200 40,362 55,577 63,477 74,477
2011 2012 2013 2014 2015F 2016F 2017F
No
. of
bed
s
Accommodation Portfolio - Bed Capacity
Singapore Malaysia Australia Singapore (Stu) United Kingdom
Note:
1. Based on developments at existing facilities that are already owned by Centurion Corp
2. Includes Westlite Tuas. The land lease of Westlite Tuas will expire in Apr 2017 if there are no further extension by the authorities. 27
2
Strong Financial Growth of Accommodation Business
Note:
1. From core business operations 28
-
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
2011 2012 2013 2014 1H 2015
5,380
13,761 19,631
30,142
18,743 12,987
37,381
47,275
76,460
48,662
Accommodation - Revenue & Net Profit1 (S$'000)
Net Profit Revenue
188%
43%
156%
26%
62%
54%
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Conclusion
Stable and resilient assets classes
Diversified portfolio of Workers and Students accommodation assets
Pipeline of development projects for continued growth
Continue to seek selective opportunities to grow its accommodation
assets
Enhance project returns through asset enhancement initiatives
Capital management to enhance shareholder value
Centurion Corporation Limited
2Q & 1H 2015 Financial Results
12 August 2015
For any enquiries, please contact:
Mr. David Oh, Investor Relations Manager
Tel: +65 6745 3288 Email: [email protected]
Centurion Corporation Limited (http://www.centurioncorp.com.sg)
