Singapore Exchange Ltd. · SGX:S68
Singapore Exchange — CapitaLand Group — H1 2009 Earnings Presentation
81 slides from Singapore Exchange's earnings presentation, July 2009
Slide 1: CapitaLand Group 1H 2009 Results
CapitaLand Group 1H 2009 Results July 2009
Slide 2: Disclaimer
Disclaimer This presentation may contain forward-looking statements that involve 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. Represe
Slide 3: Contents
Contents • Results Overview • Highlights • Financials & Capital Management • Outlook • Next Growth Phase 3 CapitaLand Presentation *July 2009*
Slide 4: Results Overview
Results Overview Liew Mun Leong Group President & CEO 4 CapitaLand Presentation *July 2009*
Slide 5: Navigated the Global Crisis Successfully
Navigated the Global Crisis Successfully • Business Landscape: Sep 2008 to Mar 2009 – Collapsing financial markets & economies – Global Credit Crunch – Severe loss of confidence & risk of “global depression” – Was it only 4 months ago? • Focused on Solvency, Maximising Liquidity & Financial Flexibil
Slide 6: 1H'09 Results
1H’09 Results • Revenue : S$1.1 billion Revenue Under Management : S$2.6 billion • PATMI (excluding revaluations & impairments) : S$171 million • Statutory PATMI : (S$114.1 million) S$’ Million 1H 2008 1H 2009 Revenue 1,451.4 1,078.2 PATMI excluding revaluations & impairments 383.11 171.0 Revaluatio
Slide 7: 2Q'09 Core PATMI Improved by 163%
2Q’09 Core PATMI Improved by 163% • 2Q’09 PATMI (excluding revaluations & impairments) of S$124 million vs 1Q’09 S$47 million, 163% • 2Q’09 EBIT (excluding revaluations & impairments): – CapitaLand China Holdings 109% to S$44 million – CapitaLand Residential S’pore 77% to S$35 million – Ascott 116%
Slide 8: Overseas Businesses Contributed 61% of EBIT
1H 2009 Contributions By SBUs and Geography Overseas Businesses Contributed 61% of EBIT1 Europe/Others S$7 mil 2% Aust & NZ S$100 mil 21% Singapore S$189 mil 39% Asia/GCC S$62 mil 13% China S$122 mil 25% 1 excluding revaluations & impairments 8 CapitaLand Presentation *July 2009*
Slide 9: Pro-active Capital Management
Pro-active Capital Management • Deleveraged balance sheet – The Group raised total S$3.8 billion in 1H09 • Strengthened financial position – Improved gearing: 1H’09 CapitaLand CMT CCT Australand (Net Debt / Equity) (Debt / Asset) (Debt / Asset) (Net Debt / Asset) Gearing 0.43x 0.30x 0.31x 0.281 Shar
Slide 10: Strong Recurring Income in 1H09
Strong Recurring Income in 1H09 5 REITS & 17 PE • Fee-based revenue up 10% to S$182 million Funds (17% of Group’s revenue) • REITs distribution to CapitaLand up 25% to S$77 million Countries No. of No. of PE Funds REITS Total AUM Funds REITs (S$ billion) (S$ billion) (S$ billion) Singapore ‐ 2 ‐ 14.
Slide 11: Highlights
Highlights 11 CapitaLand Presentation *July 2009*
Slide 12: Singapore Residential – Sentiments Improved
CapitaLand Residential Singapore (CRS) Singapore Residential – Sentiments Improved • Successful launches – The Wharf Residence • 94% of 173 apartments sold – The Orchard Residences • 83% of 175 apartments sold The Wharf Residence • 1,000 units completed & handed over (TOP) – RiverGate : 545 units –
Slide 13: China Residential – Strong Sales
CapitaLand China Holdings (CCH) China Residential – Strong Sales • Residential transactions picked up – Improved market sentiment following economic stimulus measures – Affordability enhanced • Sold 1,163 units1 in 1H09 The Riviera, Foshan – Exceeded FY08 sales of 782 homes – Price increased by 10%-
Slide 14: China - Raffles City
CapitaLand China Holdings (CCH) China - Raffles City 5 Raffles City Projects • Raffles City Shanghai trading well • Raffles City Beijing Retail opened in April’09 • Raffles City Chengdu construction in progress • Raffles City Hangzhou final planning stage • Raffles City Ningbo commenced construction
Slide 15: Vietnam Residential – Positive Signs of Recovery
CapitaLand Commercial (CCL) Vietnam Residential – Positive Signs of Recovery • GDP grew 3.9% YoY in 1H09 • State Bank of Vietnam (SBV) to maintain interest rates at 7% and CPI below 10% for 2009 • Regulatory changes to home ownership for foreigners & Viet Kieus boosted residential sector • The Vista
Slide 16: Singapore Commercial Portfolio Remains Resilient
CapitaLand Commercial (CCL) Singapore Commercial Portfolio Remains Resilient • Strong 1H09 performance for CCT – DPU increased 29% YoY – Net Property Income increased 41.5% YoY despite challenging market conditions – Stronger Balance Sheet • Successfully raised S$828 m through rights issue • Gearing
Slide 17: Singapore Retail - Resilient Portfolio of 18 Shopping Malls
CapitaLand Retail (CRTL) Singapore Retail - Resilient Portfolio of 18 Shopping Malls Singapore Suburban Malls well distributed and • Retail sales in suburban well located across Singapore malls stable – Healthy rental Sembawang Shopping Centre – Full occupancy – Cater to necessity shopping Junction
Slide 18: ION Orchard
CapitaLand Retail (CRTL) ION Orchard Singapore • ION Orchard opened on 21 July’09 – 96% of space leased – 335 shops with a total retail area of 650,000 sq ft over 8 levels – Levels 1 – 4: Luxury and Lifestyle brands VIP Toilet – Basements 1- 4: High Street and Lifestyle brands Mall Interior ION Exte
Slide 19: ION Orchard
CapitaLand Retail (CRTL) ION Orchard – 70% committed to country flagships, new-to-market brands and new concepts – Over 70 flagships (occupying 40% of area leased) – >80 new-to-market brands and new concepts – Gross project (includes The Orchard Residences) Level 1 Entrance next to Cartier currently
Slide 20: China Retail – Expansion On Track
CapitaLand Retail (CRTL) China Retail – Expansion On Track China • Strong domestic consumption – National retail sales rose by average 15% in 1H09 YoY • Total pipeline of 58 malls (including CRCT) • 31 malls are operating – 3 new malls opened year-to-date • On track to open 7 more malls by end-2009
Slide 21: Retail – Building Presence Across Asia
CapitaLand Retail (CRTL) Retail – Building Presence Across Asia • Malaysia – Less affected by global economic crisis – 3 malls - Gurney Plaza, Sungei Wang Plaza and Mines Shopping Fair – Asset Enhancement Initiatives (“AEI”) in Mines Shopping Fair completed and malls performing well • Japan – Reconf
Slide 22: Growing Fund Management Business
CapitaLand Financial (CFL) Growing Fund Management Business S$ Billion AUM 30 S$25.6bn • Growth in recurring 25 S$21.1bn Fund Management fees 20 $4.9bn $8.4bn – Strong 1H09 revenue of S$78 m, 15 PE funds 31% YoY increase 10 REITs $16.2bn $17.2bn 5 0 • AUM stands at over S$25 bn 1H08 1H09 • REITs ach
Slide 23: Pacing Project Progress with Market Conditions
Integrated Leisure, Entertainment and Conventions / Gulf Cooperation Council Pacing Project Progress with Market Conditions • Abu Dhabi (Arzanah) Phase 1 Rihan Heights – 579 of 868 units sold – Construction on schedule with 12% work completed • Bahrain (Raffles City Bahrain) – 91 units sold – Piling
Slide 24: Extending Global Leadership
The Ascott Group (Ascott) Extending Global Leadership 25,000 units spanning 66 cities in 22 countries • Launched first Citadines properties in Singapore and Japan – Occupancies reached highs of >80% • Expanded presence in China – Opened 3 new properties in Chongqing, Shenzhen and Tianjin Citadines S
Slide 25: Extending Global Leadership (cont'd)
The Ascott Group (Ascott) Extending Global Leadership (cont’d) 25,000 units spanning 66 cities in 22 countries • Largest international owner-operator in Europe – 50 properties in more than 5,600 units across Europe – Added 2 INSEAD residences in Fontainebleau, France in 2009 UK: 6 properties London
Slide 26: Financials & Capital Management
Financials & Capital Management Olivier Lim Group CFO 26 CapitaLand Presentation *July 2009*
Slide 27: Contents
Financials & Capital Management Contents • Statutory Results • Impact of Revaluations & Impairments • Credit Market Update • Capital Management 27 CapitaLand Presentation *July 2009*
Slide 28: 1H 2009 Statutory Results
Financials 1H 2009 Statutory Results S$ million 1H 2008 1H 2009 Change Revenue 1,451.4 1,078.2 -26% EBIT 1,286.6 40.2 -97% PATMI 762.7 (114.1) NM EPS (cents) 22.41 (3.0) NM 2 NTA (S$) 3.47 2.73 NM 1 Restated for the effects of rights issue. 2 Based on larger share base arising from rights issue. 28
Slide 29: Impact of Revals & Impairments: 1H 2009 YoY
Financials Impact of Revals & Impairments: 1H 2009 YoY S$ millions 1H 2008 1H 2009 Change PATMI 762.7 (114.1) NM Revaluations & Impairments* 379.6 (285.1) NM PATMI excluding Revals & Impairments 383.1 171.0 -55% * “Revaluations” refer to net FRS40 gains and losses arising from changes in the valuati
Slide 30: Impact of Revals & Impairments: 2Q 2009 QoQ
Financials Impact of Revals & Impairments: 2Q 2009 QoQ S$ millions 1Q 2009 2Q 2009 Change PATMI 42.9 (156.9) NM Revaluations & Impairments* (4.1) (280.9) NM PATMI excluding Revals & Impairments 47.0 124.0 163% * “Revaluations” refer to net FRS40 gains and losses arising from changes in the valuation
Slide 31: Impact to CL PATMI: 5 Key Listed Entities
Financials Impact to CL PATMI: 5 Key Listed Entities The following 5 Key Listed Entities reported their results earlier. The PATMI impact to CL of their Revaluations & Impairments is shown below. 2Q CL PATMI IMPACT CL Share S$ million Listed Entities Total Revals Impair. Country SBU / Remarks Listed
Slide 32: Impact to CL PATMI: 5 Key Listed Entities
Financials Impact to CL PATMI: 5 Key Listed Entities S$ millions 2Q 2009 PATMI (156.9) Revals & Impairments: 5 Key Listed Entities (484.2) (A) PATMI excluding (A) 327.3 Revals & Impairments: Rest of Group * 203.3 (B) PATMI excluding (A) & (B) 124.0 32 CapitaLand Presentation *July 2009*
Slide 33: List of Major Revaluation & Impairment Items
Financials List of Major Revaluation & Impairment Items Major Revaluations and Impairments arising from rest of the Group 2Q CL PATMI IMPACT CL Share S$ million Major Items Total Revals Impair. Country SBU / Remarks Rest of Group ION Orchard 358.0 358.0 - S'pore CRTL/CRS (40%/10%) Raffles City Hangz
Slide 34: 2Q PATMI Impact Map: Revals & Impairments
Financials 2Q PATMI Impact Map: Revals & Impairments SBU & Geographic Impact of all Revaluations & Impairments 2Q 2009 PATMI impact of Other Asia Europe & S'pore China Aust/NZ Total Revals & Impairmts (S$ mil) /GCC Others CL Residential Singapore 22.6 - - - - 22.6 CapitaLand China Holdings - 181.0 -
Slide 35: Successful Capital Management Strategy
Capital Management Successful Capital Management Strategy • Maintained high level of Financial Flexibility – Protected downside, ready for upside • Raise funding when market conducive – Not when needed • Secured long term debt in size – e.g. S$1.3 bn CB in 2008 prior to meltdown – Long dated MTN Bon
Slide 36: Successful Capital Management Strategy
Capital Management Successful Capital Management Strategy • Deleveraged early & rapidly from a position of strength – 4 Successful equity Issues (CapitaLand, CMT, CCT & Australand) – Courage & conviction to be ahead of the curve • Objective – Demonstrate financial strength beyond doubt – Assessed th
Slide 37: Credit Environment – Confidence Returning
Capital Management Credit Environment – Confidence Returning LIBOR-OIS spread has seen dramatic improvement b.p. LIBOR-OIS Spread is an indicator of risk and liquidity in the 400 money markets. Commonly used to indicate liquidity in the financial sector and the willingness of banks to lend to each 3
Slide 38: Credit Environment – Confidence Returning
Capital Management Credit Environment – Confidence Returning • Co-ordinated Large Actions by Fed & other Central Banks – Seeds of the turnaround in 2Q’09 • Equity Market has helped provide “relief” to Credit Markets – Has allowed rapid “graceful” deleveraging globally – First financial institutions,
Slide 39: Credit Environment – Confidence Returning
Capital Management Credit Environment – Confidence Returning • Singapore Bank Market warming up – Less inward focused…more pro-business – Banks’ risk aversion beginning to thaw – Liquidity returning, but credit spreads remain elevated – However, signs of competitive pressure beginning • Gillman proj
Slide 40: Deleveraged Balance Sheet
Capital Management Deleveraged Balance Sheet S$ billion Jun 2008 Jun 2009 Change Equity 12.0 13.6 13% Cash 3.4 4.2 24% Net Debt 8.2 5.8 -29% Net Debt / Equity 0.68 0.43 Improved % Fixed Rate Debt 76% 67% Satisfactory 40 CapitaLand Presentation *July 2009*
Slide 41: Aggressive Growth, Conservative Capital Management
Capital Management Aggressive Growth, Conservative Capital Management Despite rapid growth, Group has strengthened its balance sheet Equity1 S$ billion Net Debt Cash Year 1 Dividend & distributions totaled S$2.7 bn since merger in Nov 2000. Rights issue of S$1.8bn in 1Q09. 41 CapitaLand Presentation
Slide 42: Debt Coverage
Capital Management Debt Coverage Jun 2008 Jun 2009 Change Net Debt/Equity 0.68 0.43 Improved Interest Cover Ratio * 3.2 1.6 Decreased Interest Service Ratio 5.6 3.3 Satisfactory * Excludes unrealised revaluation gains or losses. Debt - Cash Net D/E = Equity EBITDA ICR = Net Interest Expense Operatin
Slide 43: Debt Management: Gearing Range
Capital Management Debt Management: Gearing Range The Lesson (Again): • Globally, failures in the Real Estate Industry… …have been Capital Management failures, …NOT business failures. • Capital Management is Critical – For Cyclical, Capital Intensive Industries. – Liquidity is “invisible”, except wh
Slide 44: Outlook
Outlook Liew Mun Leong Group President & CEO 44 CapitaLand Presentation *July 2009*
Slide 45: Focusing on 4 Core Markets
Focusing on 4 Core Markets 9 China 9 Singapore 9 Vietnam 9 Australia 45 CapitaLand Presentation *July 2009*
Slide 46: China's Real Estate Drivers
“Strong Dragon – Resilient Internal Strength” China’ ’ s Real China’s RealEstate Estate Drivers Drivers “Strong Dragon – Resilient “ Strong Internal Dragon ” Strength” Strong Strong Urbanisation Urbanisation Strong Strong (15mil (15 mil per year) year) Infrastructure Infrastructure Political Politic
Slide 47: China GDP Growth
China GDP Growth YoY % Forecast Source: EIU, Consensus Forecast & CapitaLand Research 47 CapitaLand Presentation *July 2009*
Slide 48: Effects of Government Policies on China's Real Estate
Effects of Government Policies on China’s Real Estate Aggregate of CCH’s primary markets • Credit tightening • Economic • Credit loosening - Interest rates slowdown • Property revival - Reserve requirement - No further measures 3,000,000 tightening 14,000 Average Transacted Price (RMB psm) measures
Slide 49: Residential Affordability Improved
Residential Affordability Improved Affordability improved to ~25% compared to pre-crisis level of >35% Aug‐05 Aug‐06 Aug‐07 Aug‐08 Dec‐05 Dec‐06 Dec‐07 Dec‐08 Feb‐06 Feb‐07 Feb‐08 Feb‐09 Apr‐05 Apr‐06 Apr‐07 Apr‐08 Apr‐09 Jun‐05 Oct‐05 Jun‐06 Oct‐06 Jun‐07 Oct‐07 Jun‐08 Oct‐08 Jun‐09 24 26 28 30 Aff
Slide 50: Fast Recovery of Residential Market
Fast Recovery of Residential Market • Marked improvement in sales over 2008 • Nation-wide home sales 45.3% for 1st five months to RMB 1.1 trillion * Source: China Index Academy 50 CapitaLand Presentation *July 2009*
Slide 51: Residential Inventory Reduced
Residential Inventory Reduced 51 CapitaLand Presentation *July 2009*
Slide 52: China Retail Sales Robust
China Retail Sales Robust 1,100 20 18 1,050 16 Total Retail Sales (RMB billions) 14 Y‐o‐Y Change (%) 1,000 12 10 950 8 6 900 4 2 850 0 Jan‐09 Feb‐09 Mar‐09 Apr‐09 May‐09 Jun‐09 Total Retail Sales of Consumer Goods Y‐o‐Y Change (%) Source: CEIC China Premium & CapitaLand Research 52 CapitaLand Presen
Slide 53: Room to Grow for Organised Retail in China
Room to Grow for Organised Retail in China 4% Source: Ernst & Young & CapitaLand Research 53 CapitaLand Presentation *July 2009*
Slide 54: China Growth Strategy – 2 Prong Approach
China Growth Strategy – 2 Prong Approach Organic Growth China business S$6.1 billion (US$4.2 billion) to hit ~45% or 27% of Group’s Assets (~US$8 billion) currently in China of Group’s Assets Growth Through Fund Management 9 PE Funds + 1 REIT currently: AUM S$7.3 billion (US$5 billion) 54 CapitaLand
Slide 55: Our China Strategy – Investing for Growth
Our China Strategy – Investing for Growth • Positioned to grow China franchise – RMB25 billion Group credit limit allocation from BOC and ICBC • Residential – Impending launches in Beijing, Ningbo, Foshan and Chengdu – Expect to sell over 2,000 homes in 2009 – Replenish quality land at attractive va
Slide 56: Our China Strategy – Investing for Growth (cont'd)
Our China Strategy – Investing for Growth (cont’d) • Retail – Rolling out the pipeline of 58 malls – 7 more malls to be completed by end-2009 • Serviced Residences – 19 operating properties in China with 2 more opening in 2H’09 – Reconstitute and upgrade of portfolio – Secure more management contrac
Slide 57: CapitaLand China Executive Committee
CapitaLand China Executive Committee • Better co-ordinate and align investments, operations, branding and resources in China • Spearhead the growing businesses in China 114 projects in 47 cities Residential 20 projects (20,000 units) with a total GFA of 3,000,000 sqm Commercial 10 projects, with tot
Slide 58: Singapore's Real Estate Drivers
Singapore’s China’ s Real Singapore’s Real Real Estate Estate Estate Drivers Drivers Drivers ““Blue-chip Strong Dragon “Blue‐chip Market” ” Market” Strong Urbanisation Strong Market (15Diversified mil per year) Infrastructure Political Political Diversified Sustainable Competitive‐ Diversified Magne
Slide 59: Singapore's GDP Growth Registered Sharp Improvement
Singapore’s GDP Growth Registered Sharp Improvement % GDP (Quarterly; Real) ‐ YoY % chg 12 9 8.6 9.5 6 6.7 5.5 3 2.5 0 0.0 -3.7 -3 ‐4.2 -6 -9 ‐10.1 -12 Jun-07 Sep-07 Dec-07 Mar-08 Jun-08 Sep-08 Dec-08 Mar-09 Jun-09 59 CapitaLand Presentation *July 2009*
Slide 60: Singapore's PMI Returned to Expansionary Territory
Singapore’s PMI Returned to Expansionary Territory Purchasing Manager Index (Manufacturing) Expansion Contraction 60 CapitaLand Presentation *July 2009*
Slide 61: Singapore Becoming a Global Hub City
Singapore Becoming a Global Hub City Event/Initiative Highlights Two Integrated Resorts • 35,000 new jobs • Expected completion: 2010 Youth Olympics 2010 • Promote Singapore as an international destination "Remaking of Singapore's premier • Completion of S$40m makeover shopping street, Orchard Road"
Slide 62: Singapore Residential Affordability Improved
Singapore Residential Affordability Improved 2Q’09 affordability adjusted for employer’s CPF contribution Assumptions: (1) Low-end condominium (75% of median prices); (2) Typical unit size of 110 sqm; (3) Loan term of 25 years; (4) Loan to value ratio of 0.9; (5) Potential buyers are households belo
Slide 63: Surge in Residential Transaction Volume
Surge in Residential Transaction Volume Primary sale vol. in 1H09 totaled 7,250 compared to FY08’s sales of 4,264 homes Source: Colliers & CapitaLand Research 63 CapitaLand Presentation *July 2009*
Slide 64: Singapore Impending Launches
CapitaLand Residential Singapore (CRS) Singapore Impending Launches • Proposed development at former Gillman Heights Condominium site – 1,000 lifestyle apartments – Stunning architecture by Ole Scheeren of the Office for Metropolitan Architecture (OMA) which optimises the full potential of the site
Slide 65: Singapore Impending Launches
CapitaLand Residential Singapore (CRS) Singapore Impending Launches • Proposed development at former Char Yong Gardens site – 165 resort-style apartments by Kerry Hill Architects – Capitalising on the makeover of the Orchard Road precinct Former Char Yong Garden site Proposed development at the Chat
Slide 66: Singapore Retail Resilience
CapitaLand Retail (CRTL) Singapore Retail Resilience Singapore’s retail space per capita still relatively low Sq ft 45 38.2 40 35 30 25 22.1 20 14.4 13.8 13.2 15 11.2 10.6 11.2 10 5 - USA Australia South Korea United Hong Kong Japan Singapore Singapore Kingdom (2013) Source : JHD Research, June 2008
Slide 67: Vietnam's Real Estate Drivers
Vietnam’s Real Estate Drivers “Hungry and Emerging” Strong Urbanisation Strong (15 mil per year) Strong Rising Middle Infrastructure Pro – growth Diversified Sustainable Diversified & Rising Sustainable Growing FDI & Class & Diversified (Efficient & Regulatory Economic Economy, FDI Economic New Rich
Slide 68: Vietnam - Real Estate Demand Drivers
Vietnam - Real Estate Demand Drivers • Strong & steady economic growth • Rising income • Growing urban population • Large young population – 60% below 30 years old vs China & S’pore of just under 40% • Emerging availability of mortgages • Improving standards of living fuels demand for quality housin
Slide 69: Vietnam Impending Residential Projects
CapitaLand Commercial (CCL) Vietnam Impending Residential Projects Hanoi • Mulberry Lane – Prime 2.4-ha site in Hanoi’s new CBD (Mo Lao New Urban Area) – Approximately 1,500 units in total – To be launch-ready by end-2009 Ho Chi Minh City • Thanh My Loi project Mulberry Lane, Hanoi – Obtained 1/500
Slide 70: Australia's Real Estate Drivers
Australia’s Real Estate Drivers Australia’s Real Estate Drivers “Steady” “Steady” Sustainable Favorable Economic Demography, Affordable Fundamentals Rising Housing & Political & Selling Well Immigration, Inhibited Stability To China’s Strong Supply Commodity Population Needs Growth Australia – Best
Slide 71: Australia – Economy Improving
Australia – Economy Improving 3 2.6 2.6 2.1 Consensus forecast of 2009 GDP growth upgraded 2 1.7 YoY % chng 1 1.1 0.9 0.3 0 ‐0.1 ‐0.3 ‐0.2 ‐0.6 ‐0.7 ‐1 Source: Consensus forecast 71 CapitaLand Presentation *July 2009*
Slide 72: Australia - Consumer Confidence Rebounded Sharply
Australia - Consumer Confidence Rebounded Sharply Index Consumer Confidence Index (Seasonally Adjusted) 130 120 Jul‐09 110 109.4 100 90 80 Jul‐08 79 70 Jun‐99 Aug‐00 Oct‐01 Jan‐03 Mar‐04 May‐05 Jul‐06 Sep‐07 Nov‐08 Source: Westpac-Melbourne Institute 72 CapitaLand Presentation *July 2009*
Slide 73: Australia - Business Confidence Also Rebounded
Australia - Business Confidence Also Rebounded Business Confidence Index (Seasonally Adjusted) 25 15 Jun‐09 5 4.0 Index ‐5 ‐15 ‐25 Jan‐09 ‐32 ‐35 May‐99 Sep‐00 Jan‐02 May‐03 Sep‐04 Jan‐06 May‐07 Sep‐08 Source: National Australia Bank 73 CapitaLand Presentation *July 2009*
Slide 74: Surge In First-Time Home Buyers
Surge In First-Time Home Buyers - Low Mortgage Rates and Government Grants Owner-occupier finance approvals (ex-refinancing) Source: ABS; Goldman Sachs Latest data: May 09 74 CapitaLand Presentation *July 2009*
Slide 75: Australand Raising Equity of A$475 million
- Raising Equity of A$475 million1 Rationale: • Strengthens balance sheet MEASURES COVENANT PRO FORMA significantly JUNE 2009 – Reduces gearing to 27.6% from 39.8% Security Holders >$1 billion $2.3 billion Funds – Improves financial ratios Interest Cover – Increases available liquidity to A$616 m >2
Slide 76: Next Phase of Growth
Next Phase of Growth 76 CapitaLand Presentation *July 2009*
Slide 77: Positioning for Next Phase of Growth
Positioning for Next Phase of Growth Grow China Business • 35-45% of CL’s business Expand in Vietnam • 5-10% of CL’s business Extend leadership in Asian Retail malls • ION Orchard landmark project • 66 operating malls in 5 countries Grow Financial Services franchise Seek opportunities in Singapore •
Slide 78: CSR
CSR 78 CapitaLand Presentation *July 2009*
Slide 79: Ensuring Long-Term Corporate Sustainability
Corporate Social Responsibility Ensuring Long-Term Corporate Sustainability • Corporate sustainability leadership – Only Singapore real estate company in Dow Jones Sustainability Asia Pacific Index – Only Singapore company in Sustainability Yearbook 2009 • Environmental awards – BCA Built Environmen
Slide 80: Contributing to Societies / Communities
Corporate Social Responsibility Contributing to Societies / Communities Caring for Needy Children in Health, Education and Homes Community initiatives • Back to School/ Shop for Hope – CapitaLand Hope Foundation (CHF) donated S$25,000 for underprivileged children to buy back-to-school necessities •
Slide 81: Thank You
Thank You Questions 81 CapitaLand Presentation *July 2009*