Slide 1: Full Year Financial Report 1 Jan – 31 Dec 2011
FULL YEAR FINANCIAL REPORT 1 Jan – 31 Dec 2011 29 FEBRUARY 2012 CDL ANALYST PRESENTATION Artist’s Impression of Blossom Residences
Slide 2: Agenda
AGENDA 1. FINANCIAL HIGHLIGHTS 2. SINGAPORE PROPERTY MARKET 3. OPERATIONS REVIEW Property Development Hotel Operations 4. MARKET OUTLOOK 5. MOVING FORWARD Artist’s Impression of The Rainforest
Slide 3: Financial Highlights
FINANCIAL HIGHLIGHTS Artist’s Impression of Buckley Residences
Slide 4: Key Financial Highlights
KEY FINANCIAL HIGHLIGHTS • Strong 2011 earnings powered by property development and hotels. • Sterling performance with pre-tax profits crossing the $1 billion mark for the second consecutive year. • Record PATMI for FY 2011 of $798.6 million (restated 2010: $784.0 million), with no property fair va
Slide 5: Summary of Financial Highlights
SUMMARY OF FINANCIAL HIGHLIGHTS Q4 Q4 % FY FY % 2011 2010 * Change 2011 2010 * Change Revenue ($m) 722 672 7.4 3,280 3,103 5.7 Profit Before Tax ($m) 246 310 (20.6) 1,136 1,067 6.5 PATMI ($m) 163 241 (32.3) 799 784 1.9 Basic Earnings Per Share (cents) 17.2 25.8 (33.3) 86.4 84.8 1.9 NAV Per Share ($)
Slide 6: Revenue for the Year Ended 31 Dec (2003 – 2011)
FINANCIAL HIGHLIGHTS Highest since Revenue for the Year Ended 31 Dec (2003 – 2011) inception 3,500 3,273 3,280 3,106 3,103 2,945 3,000 2,547 2,500 2,326 2,380 2,374 $ million 2,000 1,500 1,000 500 0 2003 2004 2005 2006 2007 2008 2009 2010 * 2011 Year * Restated due to the adoption of INT FRS 115 for
Slide 7: PATMI for the Year Ended Dec (2003 - 2011)
FINANCIAL HIGHLIGHTS Highest PATMI for the Year Ended 31 Dec (2003 - 2011) since inception 900 784 799 800 725 700 581 593 600 $ million 500 400 352 300 227 200 200 152 100 0 2003 2004 ^ 2005 2006 2007 2008 2009 2010 * 2011 ^ Restated Year * Restated due to the adoption of INT FRS 115 for 2010 only.
Slide 8: Financial Highlights 10-Year Analysis
FINANCIAL HIGHLIGHTS 10-Year Analysis 2002 2003 2004 ^ 2005 2006 2007 2008 2009 2010 * 2011 Revenue $2,289m $2,326m $2,380m $2,374m $2,547m $3,106m $2,945m $3,273m $3,103m $3,280m Profit before tax $243m $214m $503m $404m $692m $955m $834m $832m $1,067m $1,136m PATMI $151m $152m $227m $200m $352m $7
Slide 9: Revenue by Segment – FY 2011 vs FY 2010 & FY 2009
FINANCIAL HIGHLIGHTS Revenue by Segment – FY 2011 vs FY 2010 & FY 2009 1,800 FY 2009 1,577 1,563 1,600 1,447 1,492 FY 2010 * 1,344 1,400 FY 2011 1,125 1,200 $ million 1,000 800 600 400 332 281 281 200 53 69 92 0 Property Hotel Operations Rental Others Development FY 2011 FY 2010 * FY 2009 Property D
Slide 10: Profit Before Tax by Segment – FY 2011 vs FY 2010 & FY 2009
FINANCIAL HIGHLIGHTS Profit Before Tax by Segment – FY 2011 vs FY 2010 & FY 2009 600 545 536 FY 2009 500 421 FY 2010 * 422 400 325 FY 2011 $ million 282 300 205 200 133 123 100 31 19 0 (7) (100) Property Hotel Rental Others Development Operations FY 2011 FY 2010 * FY 2009 Property Development 47% 39
Slide 11: Capital Management
FINANCIAL HIGHLIGHTS Capital Management As at 31/12/11 As at 31/12/10 Net borrowings $1,816m $2,346m Interest cover ratio 21.8 x * 21.3 x Cash and cash equivalents $2,603m $1,874m Net gearing ratio without taking in fair value 21% * 29% gains on investment properties CDL’s Net Gearing (%) (2006 – 20
Slide 12: Singapore Property Market
SINGAPORE PROPERTY MARKET Artist Impression of The Palette
Slide 13: Property Price Index – Residential (2007 – 2011)
SINGAPORE PROPERTY MARKET Property Price Index – Residential (2007 – 2011) Q4 11 All Residential 206.2 220 200 180 160 140 120 100 80 Q1 07 Q2 07 Q3 07 Q4 07 Q1 08 Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 Q3 11 Q4 11 Source : URA, Q4 2011
Slide 14: New Private Residential Units Launched vs Units Sold
SINGAPORE PROPERTY MARKET No. of New Private Residential Units Launched vs Units Sold (Projects under Construction) (2007 – 2011) New Units Launched New Units Sold (Projects Under Construction) 18,000 17,710 15,904 16,000 New Units New Units 14,000 Launch Sold Directly (excl. EC units) By Developers
Slide 15: Uncompleted Private Residential Units Available
SINGAPORE PROPERTY MARKET No. of Uncompleted Private Residential Units Available (2007 – 2011) Not Launched Launched & Unsold 20,000 18,266 17,084 16,000 Launched Not Total 13,937 13,928 & Unsold Launched 2007 2,063 7,099 9,162 12,000 2008 3,880 14,386 18,266 Number of Units 9,162 2009 3,317 10,620
Slide 16: Property Price Index – Commercial (2007 – 2011)
SINGAPORE PROPERTY MARKET Property Price Index – Commercial (2007 – 2011) 140 Q4 11 124.5 120 Q4 11 120.8 100 80 60 Office Shop 40 20 0 Q1 07 Q2 07 Q3 07 Q4 07 Q1 08 Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 Q3 11 Q4 11 Source : URA, Q4 2011
Slide 17: Average Office Rental in CBD (2007 – 2011)
SINGAPORE PROPERTY MARKET Average Office Rental in CBD (2007 – 2011) 18.00 $16.00 Raffles Place 16.00 $14.95 Non CBD-Core 14.00 12.00 $9.85 $9.75 10.00 $9.35 $8.60 $7.80 8.00 $6.15 $6.55 6.00 $5.20 4.00 2.00 0.00 2007 2008 2009 2010 2011 Source : JLL Research, Q4 2011
Slide 18: Operations Review
OPERATIONS REVIEW Artist’s Impression of H2O Residences
Slide 19: Property Development
PROPERTY DEVELOPMENT The Residences at W Singapore Sentosa Cove
Slide 20: Property Development: Units Booked / Sold
PROPERTY DEVELOPMENT Units Booked / Sold Sales Value* No. of Total $’000 Units* Floor Area (sq ft) 2011 $ 1,754,948 1,818 1,942,211 2010 $ 2,114,910 1,559 1,850,093 * Includes share of JV partners
Slide 21: Planned Residential Project Launches for H1 2012
OPERATIONS REVIEW Planned Residential Project Launches for 1H 2012 (subject to market conditions) Projects Units Launch Date The Rainforest EC (Total: 466) 466 Jan 2012 Robertson Quay (Total: 70) 70 Mar / Apr 2012 Serangoon Gardens Way (Total: 96) 96 April 2012 Total 632
Slide 22: Land Bank by Sector
OPERATIONS REVIEW Land Bank by Sector (as at 31 December 2011) Land Area (Sq ft) Type of Development Local Overseas Total % (Local & Overseas) Residential 1,665,031 774,399 2,439,430 65.6% Commercial / Hotel 466,814 342,494 809,308 21.8% Industrial 468,704 - 468,704 12.6% Total 2,600,549 1,116,893 3
Slide 23: Rental Revenue by Sector for Year Ended Dec
OPERATIONS REVIEW Rental Revenue by Sector for Year Ended 31 Dec 400 $333m 350 $281m 300 Rental Revenue ($m) 250 Office 196 Retail 200 178 Industrial 150 Others * 100 70 13 65 50 54 13 25 0 2010 2011 * Including car park, serviced apartment and residential
Slide 24: Hotel Operations
HOTEL OPERATIONS Millennium Biltmore Hotel Los Angeles
Slide 25: Hotels: M&C Group
HOTELS M&C Group Good Trading Performance Record year of revenue and profits due to strong hotel operating performance and significant gains from asset management activities. Millennium Hotel London Mayfair RevPAR (in constant currency) up 5.8% to £64.81 for FY 2011 (FY 2010: £61.28) RevPAR gr
Slide 26: Hotels: Major Refurbishment
HOTELS Major Refurbishment Millennium Seoul Hilton – completed the 1st phase of renovating 249 rooms in Q2 2011. Grand Hyatt Taipei Millennium UN Plaza – renovation of ballroom – close to awarding completed, undergoing construction contract for re-cladding of its façade and the West Wing will commen
Slide 27: Hotels: Major Refurbishment
HOTELS Major Refurbishment Orchard Hotel - completed renovation of Claymore Wing in Q3 2011.
Slide 28: Hotel Revenue by Region
HOTELS Hotel Revenue by Region FY 2011 FY 2010 6% 42% 7% 39% Asia 25% 104 24% 97 378 United States 397 615 649 Europe New Zealand 439 461 28% 29% $1,563m $1,577m Overall change = 1%
Slide 29: Hotel Occupancy by Region
HOTELS Hotel Occupancy by Region 80.0 77.1 75.3 75.9 74.9 Hotel Occupancy Rate (%) 70.0 66.3 63.6 64.4 64.2 FY 2010 FY 2011 60.0 50.0 Asia United States Europe New Zealand
Slide 30: Hotel Revenue Per Available Room at Constant Currency
HOTELS Hotel Revenue Per Available Room at Constant Currency 170 148 143 144 137 140 Hotel RevPAR ($) 123 116 110 FY 2010 * FY 2011 80 74 75 50 Asia United States Europe New Zealand * For comparability, FY 2010 RevPAR has been translated at constant exchange rates (31 Dec 2011).
Slide 31: Market Outlook
MARKET OUTLOOK Artist’s Impression of The Rainforest
Slide 32: Singapore Economic Outlook
MARKET OUTLOOK Singapore Economic Outlook • The Singapore economy grew 3.6% on a year-on-year basis in Q4 2011 as compared to 6.0% growth in Q3 2011. • For the whole of 2011, the economy expanded by 4.9%, as compared to the expansion of 14.8% in 2010. • The Government anticipates that the Singapore
Slide 33: Property Market – Residential
MARKET OUTLOOK Property Market – Residential • Demand for new homes moderated in Q4 2011 to 3,603 units from 4,262 units in Q3 2011. • The increase in private residential properties prices moderated for the 9th consecutive quarter in Q4 2011 – prices increased by 0.2% quarter-on- quarter in Q4 2011,
Slide 34: Property Market – Office
MARKET OUTLOOK Property Market – Office • The Singapore office market continued to expand into 2011, riding on the momentum from 2010. • However, with the global economic uncertainties, office demand started moderating in 2H 2011. • Office rentals increased by 1.0% in Q4 2011, compared to the 3.7% i
Slide 35: Moving Forward
MOVING FORWARD Artist’s Impression of South Beach
Slide 36: Moving Forward
MOVING FORWARD • Although the sales volume for new property launches is still relatively strong, market conditions could be affected by the global economic conditions in the months ahead. • The Group believes that the Government will review its various property cooling measures when needed, with the
Slide 37: Diversifications – CDL China Limited
MOVING FORWARD Diversifications – CDL China Limited • The Group will continue with its strategic expansion in select markets globally where it is confident of the medium to long-term growth prospects. • Key to its diversification strategy is CDL China Limited, which will continue to build on the Gro
Slide 38: CDL China Limited
CDL CHINA LIMITED Suzhou Jinji Lake, China
Slide 39: CDL China Limited: Mission and Milestones
CDL CHINA LIMITED MISSION STATEMENT To make City Developments Limited (CDL) a household name in China that is synonymous with high quality real estate developments, international expertise, green sustainability and professional property management. Milestones Q3 2010: CDL China Limited formed with S
Slide 40: Chongqing Eling Residences
CDL CHINA LIMITED Chongqing Eling Residences Summary Statistics Highlights & Current Status Date acquired: Dec 2010 • Chongqing continues to benefit from the Central City: Chongqing Government’s “Go-West” policy with GDP growth GFA: 43,000 sq m of 16.4% in 2011 • The only pure residential site for v
Slide 41: Chongqing Eling Residences
CDL CHINA LIMITED Chongqing Eling Residences
Slide 42: Chongqing Eling Residences Aerial Photograph
CDL CHINA LIMITED Chongqing Eling Residences A A B N AERIAL PHOTOGRAPH
Slide 43: Suzhou Jinji Lake
CDL CHINA LIMITED Suzhou Jinji Lake Summary Statistics Highlights & Current Status Date acquired: July 2011 • Suzhou has one of highest GDP per capita in PRC. City: Suzhou GFA: 295,455 sq m • Heart of Suzhou Industrial Park CBD, close to new high- end developments by international developers (Wharf,
Slide 44: Suzhou Jinji Lake
CDL CHINA LIMITED Suzhou Jinji Lake
Slide 45: Suzhou Jinji Lake
CDL CHINA LIMITED Suzhou Jinji Lake Suzhou Jinji Lake, China
Slide 46: Chongqing Huang Huayuan
CDL CHINA LIMITED Chongqing Huang Huayuan Summary Statistics Highlights & Current Status Date acquired: Jan 2012 • One of the few remaining prime sites in city centre with City: Chongqing spectacular unobstructed views of the Jialing River GFA: 108,686 sq m • Convenient access with proximity to publ
Slide 47: Chongqing Huang Huayuan
CDL CHINA LIMITED Chongqing Huang Huayuan Chongqing Huang Huayuan, China
Slide 48: Chongqing Huang Huayuan
CDL CHINA LIMITED Chongqing Huang Huayuan Chongqing Huang Huayuan, China Source: www.alighting.cn Photo by: 书包娃儿 Photo by: 书包娃儿
Slide 49: Tianjin City Tower
CDL CHINA LIMITED Tianjin City Tower
Slide 50: Summary of CDL China Portfolio
CDL CHINA LIMITED Summary of CDL China Portfolio Project City Type GFA Land CDL Price Ownership % (RMB Million) Eling Residences Chongqing Luxury Resi 43,000 232 100% Huang Huayuan Chongqing Mid-end Resi 108,686 540 100% Jinji Lake Suzhou Mixed Use 295,455 886 70% Tianjin City Tower Tianjin Office 3
Slide 51: China Economic Update
CDL CHINA LIMITED China Economic Update • Growth slowed but will rebound: GDP grew at 8.9% in Q4 2011 and 9.2% for the year. Growth is expected to slow to 6% in Q1 2012 but will rebound to 12% by Q4 2012 to average over 8% for the year. • Inflation under control: CPI to average 2.0% and 3.6% in 2012
Slide 52: China Economic Update
CDL CHINA LIMITED China Economic Update Source: The Wall Street Journal
Slide 53: China’s Property Market
CDL CHINA LIMITED China’s Property Market Market is undergoing correction… • Since April 2010, the government has introduced several rounds of cooling measures to prevent a risk of a property bubble • Maximum overall price correction of 15% - 20% expected by most analysts … But demand drivers for Ch
Slide 54: Rising Chinese Consumption
CDL CHINA LIMITED Rising Chinese Consumption Income Growth Solid Urbanisation Modernisation Fundamentals Productivity *** IMPORTANCE OF HOME OWNERSHIP IN CHINESE CULTURE ***
Slide 55: Additional Funds for New Projects
CDL CHINA LIMITED Additional Funds for New Projects • CDL China has been allocated an additional S$500 million to capitalise on strategic land acquisitions or M&A opportunities that may arise • Acquire and develop residential or mixed-use projects in city-centre locations • Mixed-use can be a combin
Slide 56: 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
Slide 57: Thank You
THANK YOU Artist Impression of W Singapore Sentosa Cove