Centurion Corporation Limited
Presentation
7 January 2016
Disclaimer
This presentation should be read in conjunction with the Company’s 3Q 2015 Unaudited
Financial Statement Announcement for the period ended 30 September 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.
2
About Us
Workers Accommodation
Student Accommodation
Conclusion
Financial Performance
3
Contents
About Centurion Corporation
Listed on Singapore Stock Exchange with market capitalisation of about S$293.2
mil1
One of Asia’s leading accommodation providers
Own, develop and manage quality workers accommodation and student
accommodation assets
Strong portfolio of 15 operational accommodation assets totalling 49,762 beds2
4
Centurion Properties Group (52.7%)
Public and Other Shareholders (47.3%)Centurion Corporation Ltd
1. Based on the closing price of S$0.39 per share as at 24 Dec 2015
2. Inclusive of Westlite Woodlands, exclusive of 315 beds from CSL Selegie, Singapore
5
Our Geographical Presence
Note: Total number of operational beds in Singapore are exclusive of 315 beds from CSL Selegie, currently undergoing refurbishment
1,906 beds
456 beds
19,800 beds
27,600 beds
United Kingdom
Malaysia
Singapore
Australia
U/C 16,600 beds
U/C 7,900 beds
Student 315 beds
6
Kong Chee MinGroup CEO
Tony BinExecutive Director,
Accommodation
Business
Kelvin TeoCOO,
Accommodation
Business
• Appointed as the
Group’s CEO in
August 2011 and
oversees its
operations and
strategic growth
• CPA with over 22
years of finance and
corporate
management
experience
• Joined the Group in
1996 and was its
Regional CEO and
Finance Director
• Appointed as
Executive Director
responsible for the
strategic planning
and overall
management of the
accommodation
business
• Concurrently, the
CEO of Centurion
Properties Pte Ltd
• 30 years of
experience in
financial and real
estate industries
• Over 26 years of
experience in the
property and
accommodation
development and
management
business
• Responsible for the
day-to-day
operations and
expansion of the
Group’s
accommodation
• President of
Dormitory
Association of
Singapore
Foo Ai HueyGroup CFO
• Appointed as the
Group’s CFO in
August 2011 and
oversees its finance
accounting and tax
functions, financial
and management
reporting
• Over 22 years of
experience in finance
and accounting
related experience
Ho Lip ChinCIO,
Accommodation
Business
• Responsible for
growing the Group’s
Accommodation
Business and assists
in strategic planning
activities
• Over 15 years of
experience in real
estate and hospitality
industries across
Asia Pacific
Strong Management Team
7
Workers Accommodation
8
• Foreign Workers 766,000 (Jun 2015)
• c.450,000 blue collar foreign workers requires approved accommodation
• c.200,000 beds1 PBWA2 in operation
• c.57,000 beds1 may enter the market in phases in 2016
• c.49,000 beds1 expiring in 2016 (some beds may be renewed)
• Imbalance in demand and supply of c.200,000 beds1 for PBWA
• Foreign Employee Dormitories Act 2015 came into effect in Jan 2016
Singapore
• Lack of proper foreign workers housing policies
• Government taking measures to ensure proper housing for 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. PBWA denotes Purpose Built Workers Accommodation
Approved Purpose Built Workers Accommodation
9
Spacious living spaces with en-suite or shared bathrooms and cooking facilities
Comprehensive amenities, supermarket, food court, sick bay, gym, sporting and indoor/outdoor recreation facilities
Self-contained and secure environment
Community living with organised social activities
1. Purpose Built Dormitories
Permanent Dormitories Temporary Dormitories
Freehold or long term leases (20 – 30 yrs)
Permanent RC structure, apartment style
Building & Construction Authority (BCA) or
Jurong Town Corporation (JTC) on 3+3 to
3+3+3 yrs lease
Temporary steel structure, common facilities
Comprehensive Amenities and Facilities
Well Ventilated Bedrooms Recreation Area
Well Stocked Supermarket Supermarket
Superior Building Design
Street Soccer
Sepak Takraw
Basketball & Volleyball Courts Cricket CourtsMovie Screenings
Street Soccer
Gym ATM
Spacious
Kitchen
10
Non-Purpose Built Workers Accommodation
11
Authorities allow factory/ warehouse
owners to convert ≤49% of GFA
Converted from factory/ warehouse
space to house on-site/ off-site
workers
Not ideal as accommodation
Lacks proper facilities and security
Temporary licence granted on 1-3
year basis
2. Factory/ Warehouse
Temporary accommodation
constructed on project sites
House workers working on specific
project
Poor quality and unhygienic
Lacks proper facilities
Demolished at project completion
Close to workplace but not ideal
housing
3. On-Site Quarters
Owners renting out their shop lots/
houses to workers
Spaces are crammed
Due to poor personal upkeeping
habits, often rooms are messy with
clothes hanging everywhere
Inadequate facilities
May or may not be legal
4. Shop Lots/ Houses
Approved (but not ideal) Approved (but not ideal) Often Not Approved
One of the largest providers of workers
accommodation in Singapore and Malaysia
Operational: 10 assets; 47,400 beds
Under development/planning: 4 projects; 24,500 beds
Professionally managed under our WESTLITE brand
Shaped and inspired by roofs and the Chinese character
for people “人”
Westlite differentiates ourselves by managing our
accommodation “with a heart”
Established operational platform and system
Differentiation through holistic approach
12
About Westlite
13
Our Holistic Approach
Superior Building Design
Movie Screenings
Face Recognition Turnstile System
Variety Show
Well Ventilated Bedrooms
Basketball & Volleyball Courts
24 hrs Security & Surveillance
Westlite Celebrations
Recreation Area
Sepak Takraw
Native & Local Newspapers
Free Medical Screenings
Well Stocked Supermarket
Free Wi-Fi Access & Internet Room
Excursion to Universal Studios
Gym
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 high occupancy rates
14
Westlite Tuas
Purpose built
accommodation
Temporary prefabricated
steel structure
Capacity of 8,600 beds on
short term BCA lease (<1.5
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
Purpose built
accommodation
Capacity of 4,100 beds on
leasehold land (28 years
remaining)
Mainly for workers in the
process, marine and
manufacturing industries
25% for workers in other
industries
TOP obtained in July 2015
Westlite Woodlands
15
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 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; 11,100 beds
under planning
On a portfolio basis, the Malaysian assets are achieving high occupancy rates
Operating Accommodation
16
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
17
Westlite Senai II
Under construction
Freehold land
Estimated capacity: 5,500 beds
Estimated completion in 1Q 2016
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: 6,100 beds
Estimated completion in 2017
Note: Images are artist impression for illustrative purposes only
18
Student Accommodation
19
• 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
20
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
21
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
22
UK Student Accommodation Portfolio
Liverpool
Manchester
Manchester Student Village Manchester Student Village South The Grafton Cathedral Campus
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 completed and operational in 4Q 2015
23
Singapore Student Accommodation
Selegie
CSL Selegie
Accommodation Growth Profile1
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. 24
2
5,30013,900
19,700 23,50027,600
35,500 35,50010,900
13,50014,500
19,800
25,300
36,400
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 50,077 63,477 74,577
2011 2012 2013 2014 2015F 2016F 2017F
No
. of
bed
s
Accommodation Portfolio - Bed Capacity
Singapore Malaysia Australia Singapore (Stu) United Kingdom
Strong Financial Growth of Accommodation Business
Note:
1. From core business operations 25
-
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
2011 2012 2013 2014 9M 2015
5,380
13,761 19,631
30,142 26,004
12,987
37,381
47,275
76,460
72,186
Accommodation - Revenue & Net Profit1 (S$'000)
Net Profit Revenue
188%
43%
156%
26%
62%
54%
26
Conclusion
Stable and resilient asset 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
Why Centurion Corporation
One of Asia’s leading accommodation providers
Unique exposure to resilient accommodation asset classes
Strong pipeline of new projects to support continued growth
Reputable and recognized WESTLITE brand
Proven track record of delivering results
Expanded earning base in student accommodation
Diversified geographical coverage
Experienced and prudent management
27
Financial Performance
28
29
S$’000 3Q 2015 3Q 2014 Change 9M 2015 9M 2014 Change
Revenue 24,578 20,899 + 18% 76,250 58,338 + 31%
Profit from
Continuing
Operations
7,360 7,917 - 7% 26,390 38,292 - 31%
Profit from Core
Business
Operations
7,360 7,917 - 7% 26,390 20,999 + 26%
Net Profit Margin (Based on profit from
core business
operations)
30% 38% - 8pp 35% 36% - 1pp
Note:
1. Net Profit = Profit from core business operations
Key FinancialsGroup Net Profit1 increased by 26% to 26.4m in 9M 2015 (Recurring - Exclude one off items)
30
Segment BreakdownStrong Accommodation Business Results in 3Q 2015 (Recurring - Exclude one off items)
* Net Profit = Profit from core business operations.
S$’000 Accommodation Optical Disc
Workers Students
3Q 2015 3Q 2014 Change 3Q 2015 3Q 2014 Change 3Q 2015 3Q 2014 Change
Revenue 18,176 16,069 13% 5,348 3,294 62% 1,054 1,536 -31%
Net Profit * 6,606 7,652 -14% 655 185 254% 99 80 24%
Net Profit Margin 36% 48% - 12pp 12% 6% + 6pp 9% 5% + 4pp
74%77%
22%
16%
4%
7%
0
5,000
10,000
15,000
20,000
25,000
30,000
3Q 2015 3Q 2014
Revenue (S$'000)
Workers Accom Students Accom Optical Disc
90%
97%
9%
2%
1%
1%
5,000
6,000
7,000
8,000
9,000
3Q 2015 3Q 2014
Net Profit (S$'000)
Workers Accom Students Accom Optical Disc
31
Segment BreakdownStrong Accommodation Business Results in 9M 2015 (Recurring - Exclude one off items)
* Net Profit = Profit from core business operations.
S$’000 Accommodation Optical Disc
Workers Students
9M 2015 9M 2014 Change 9M 2015 9M 2014 Change 9M 2015 9M 2014 Change
Revenue 52,695 45,467 16% 19,491 6,930 181% 4,064 5,941 -32%
Net Profit * 20,784 19,532 6% 5,220 1,345 288% 386 122 216%
Net Profit Margin 39% 43% - 4pp 27% 19% + 8pp 9% 2% + 7pp
69%78%
26%
12%
5%
10%
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
90,000
9M 2015 9M 2014
Revenue (S$'000)
Workers Accom Students Accom Optical Disc
79%93%
20%
6%
1%1%
0
5,000
10,000
15,000
20,000
25,000
30,000
9M 2015 9M 2014
Net Profit (S$'000)
Workers Accom Students Accom Optical Disc
S$’000 30 Sep 2015 31 Dec 2014 Change %
Cash & Cash Equivalents 141,354 63,144 + 124%
Current Assets 152,353 82,446 + 85%
Non Current Assets 955,684 791,587 + 21%
Current Liabilities 88,768 70,988 + 25%
Non Current Liabilities 623,884 411,485 + 52%
Net Assets 395,385 391,560 + 10%
Net Gearing Ratio1 49% 45% + 4pp
32
Balance Sheet Highlights
Note:
1. The net gearing ratio is computed as borrowings less cash and cash equivalents divided by total capital. Total capital is
calculated as borrowings plus net assets of the Group.
9M 2015 FY 2014
Earnings Per Share 3.5¢ 14.7¢
Earnings Per Share(Excluding fair value gains & trading profit)
3.5¢ 4.1¢
Share Price 42.0¢1 50.5¢2
Dividend 0.5¢3 1.5¢4
NAV per share 52.4¢ 51.6¢
Market Capitalisation S$316m 1 S$382m 2
33
Key Ratios
Note:
1. As at 30 September 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
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)