Singapore Exchange Ltd. · SGX:S68
Singapore Exchange — CapitaLand — Shareholder Meeting (April 2019)
59 slides from Singapore Exchange's shareholder meeting presentation, Apr 12, 2019
Slide 1: CapitaLand Limited Extraordinary General Meeting
CapitaLand Limited Extraordinary General Meeting 12 April 2019 1
Slide 2: Disclaimer
Disclaimer This presentation may contain forward-looking statements that involve risks and uncertainties. Any 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. Unde
Slide 3: Creating Long-Term Shareholder Value Targeting Sustainable ROE Above Cost of Equity
“Creating Long-Term Shareholder Value By Targeting Sustainable Return On Equity Above The Cost Of Equity” Capital Tower, Singapore 3 CapitaLand Presentation May 2013
Slide 4: Contents
Contents • Introduction To The Proposed Transaction • What The Proposed Transaction Offers • Things You May Be Concerned With 4
Slide 5: Introduction To The Proposed Transaction
Introduction To The Proposed Transaction Ascent, Singapore 5
Slide 6: Transaction At A Glance
Introduction To The Proposed Transaction Transaction At A Glance S$6,035.9mm To Buy 100%1 To Sell 100%1 100% of Ascendas Pte Ltd 100% of Singbridge Pte Ltd Note: 1. Excludes the following office buildings in the Ascendas-Singbridge Group’s Sydney portfolio, namely 100 Arthur Street and 66 Goulburn S
Slide 7: Purchase Consideration
Introduction To The Proposed Transaction Purchase Consideration S$6,035.9 million Adjusted Net Asset Value Of Target Companies1 50% + Stakes In Listed Trusts At Market Value2,3 + Paid in new shares Fund Management Business At Agreed Fair Value 50% Paid in cash ($3,017.93 million) ($3,017.93 million)
Slide 8: What The Proposed Transaction Offers
What The Proposed Transaction Offers Galaxis, Singapore 8
Slide 9: Key Businesses To Drive CapitaLand Forward
What The Proposed Transaction Offers Key Businesses To Drive CapitaLand Forward Focus On Four Core Markets And Two Standalone Platforms Fully integrated Global standalone Highly scalable real estate platforms platform1 standalone management in core markets platform China Lodging CapitaLand Financial
Slide 10: Singapore
What The Proposed Transaction Offers Singapore 75% Scale Of Enlarged Group Makes It Critical To Singapore’s Next Phase Of Redevelopment of Total AUM1 Numbers in circles indicate GFA1 Complementary Footprint Expands (mm sqft) North CapitaLand’s Presence CapitaLand GFA ASB GFA 100% 4 A leading landl
Slide 11: China
What The Proposed Transaction Offers Singapore AUM + China AUM China = S$93bn 75% Focused On China’s 5 Key City Clusters of Total AUM1 CapitaLand’s presence ASB’s presence Reinforces Our Presence In CapitaLand’s Key Shenyang City Clusters Beijing Dalian Enhances our ability to secure landbank Tian
Slide 12: India
What The Proposed Transaction Offers India Early Mover Advantage In High Growth Market With High Barriers Of Entry Access To Established Full Stack Capabilities That Can Unlock Deep Value International Tech Park Pune, India Vinplex, India New core market, new growth sectors Full value chain with
Slide 13: Vietnam
What The Proposed Transaction Offers Vietnam Completes Our Established Platform CapitaLand ASB Logistics / Business Parks Residential Commercial OneHub Saigon, Vietnam Retail Lodging Adds to CapitaLand’s fully integrated presence AUM Enlarged Accelerates long-term growth and contribution Group S
Slide 14: Core Developed Markets
What The Proposed Transaction Offers Core Developed Markets Recurring Income Generation From Australia, USA and Europe Achieves Immediate Economies Of Scale Commercial + Logistics / The Campus at Sorrento Gateway, Logistic properties in key UK distribution San Diego, USA centres, United Kingdom Busi
Slide 15: Lodging Platform
What The Proposed Transaction Offers Lodging Platform A-HTrust’s Portfolio Will Add To CapitaLand’s Global Footprint Expanding Scale To Accelerate Growth Fast growing global platform Asset light, ROE accretive strategy through growth of fee income Ibis Ambassador Seoul Insadong, South Korea Novo
Slide 16: CapitaLand Financial
What The Proposed Transaction Offers CapitaLand Financial Top 10 Real Estate Manager Globally Top 15 Global Real Estate Investment Managers – By Real Estate AUM1 (S$bn) #9 228 #13 178 163 157 151 147 128 127 123 114 113 111 100 96 94 89 Brookfield PGIM Blackstone Hines MetLife TH Real CBRE Global UB
Slide 17: Attracts Talents To Strengthen Real Estate Expertise and Capabilities
What The Proposed Transaction Offers Attracts Talents To Strengthen Real Estate Expertise and Capabilities Compelling Employer Value Proposition With Increased Competitiveness And Employer Branding 3.0 Continuous aligning of management’s Strategic talent and shareholders’ development and interests:
Slide 18: Things You May Be Concerned With
Things You May Be Concerned With International Tech Park Pune, Hinjawadi, India 18
Slide 19: Positive Market Sentiment
Share Price Performance Since Proposed Transaction Announcement Positive Market Sentiment CapitaLand’s Share Price Has Increased By 11.9% Since The Last Trading Day Share Price Chart1 - Last Trading Day To 5 April 2019 CapitaLand CapitaLand Listed Trusts² Ascendas Listed Trusts³ STI S$ 4.00 CapitaLa
Slide 20: Financial Impact
Things You May Be Concerned With Financial Impact •Earnings Per Share (EPS) •Return On Equity (ROE) (%) •Slight NAV Per Share (S$) (Singapore Cents) Accretion¹ Accretion¹ Dilution +2.4% +4.6% 9.78% 4.55 (4.2)% 43.1 4.36 42.1 9.35% CapitaLand Enlarged Group CapitaLand Enlarged Group CapitaLand Enlarg
Slide 21: Balance Sheet Strength – To Remain Robust
Things You May Be Concerned With Balance Sheet Strength – To Remain Robust Proven Track Record Of Recycling And Growth In Earnings 7.9 2.2 Ample 5.7 ✓ Proven track record of successful Financing (S$bn) 3.0 Cash Consideration portfolio reconstitution strategy Headroom1 Remaining (S$3bn annual target)
Slide 22: Sustainable Returns To Shareholders
Things You May Be Concerned With Sustainable Returns To Shareholders No Change To Dividend Policy Dividends Paid To Shareholders Total Capital Returned To Shareholders (S$mm) Cumulative Dividends as % of Cash PATMI Over 5 Years1: ~43% Cumulative Capital Returned Over 5 Years: ~S$2.7bn Dividends Shar
Slide 23: Opinion Of Independent Financial Adviser
Opinion And Recommendations Opinion Of Independent Financial Adviser An extract of the Independent Financial Adviser (IFA) Opinion is reproduced below. Based on the considerations set out in the IFA Opinion, the IFA is of the opinion that: • The Proposed Transaction and the Proposed Allotment and Is
Slide 24: Recommendations Of The Independent Directors
Opinion And Recommendations Recommendations Of The Independent Directors The Independent Directors have considered the opinion and advice given by the IFA set out in the IFA Opinion, and recommend: • The IPT Independent Shareholders VOTE IN FAVOUR of the ordinary resolutions relating to the Proposed
Slide 25: Thank You
Thank You 25
Slide 26: Appendix
Appendix 26
Slide 27: Glossary
Glossary Abbreviation Definition Abbreviation Definition Abbreviation Definition A-HTRUST Ascendas Hospitality Trust EBITDA Earnings before interest, taxes, PATMI Profit after tax and minority interests depreciation and amortization a-iTrust Ascendas India Trust P/E Price to equity EGM Extraordinary
Slide 28: What We Said, We Delivered
What We Said, We Delivered Maintaining Trajectory And Momentum Targets S$3 BILLION ASSET RECYCLING S$100 BILLION GROUP AUM ANNUALLY BY YEAR 2020 S$4 billion 1 S$100.1bn2 DIVESTED VALUE GROUP AUM FOR FY 2018 AS AT 31 DEC 2018 PATMI (S$mm) ROE (%) Operating PATMI3 Portfolio gains4 Revaluations and Imp
Slide 29: CapitaLand 3.0
CapitaLand 3.0 Scaling Up Responsibly Capital Allocation Enhanced Balance Developing Competitiveness Developed Markets Emerging Markets New Capabilities (50%) (50%) Harnessing An Asset Fund Developer Owner Operator Integrated Value Chain Manager Manager 29
Slide 30: Core Drivers For Sustainable Returns
Core Drivers For Sustainable Returns Efficient Capital Allocation Into Employer Of Choice 8 1 Core And Growth Markets Sustainable Growth For Investing Into Growth Sectors Future Generations 7 2 And Platforms Sustainable Return On Equity Above Cost Of Equity Maintain Balance Between Emerging Future P
Slide 31: Summary
Summary ACHIEVES IMMEDIATE SCALE IN NEW ECONOMY ATTRACTS SECTORS TALENT TO DEEPENS STRENGTHEN PRESENCE IN REAL ESTATE CORE MARKETS EXPERTISE AND CAPABILITIES WHAT THE PROPOSED BUILDS STRENGTHENS DIGITAL TRANSACTION SCALE AND CAPABILITIES IN CAPABILITIES FOR BUSINESS OFFERS CAPITALAND'S GROWTH INNOVA
Slide 32: AUM Breakdown Of The Enlarged Group
AUM Breakdown Of The Enlarged Group Breakdown By Geography Breakdown By Sector Others² Industrial 1% Residential 3% 8% Rest of World 21% Singapore Commercial 34% 21% Vietnam 2% Total AUM: Total AUM: Retail India S$123.4bn1 S$123.4bn1 32% 2% Business Parks / Logistics 10% China 41% Lodging 25% Note:
Slide 33: Significant And Diversified Development Pipeline
Potential to Accelerate Significant And Diversified Development Pipeline Future Profitability And Monetisation 104% Increase In Enlarged Group’s Developable GFA1 That Is Diversified Across The Portfolio Breakdown by geography Breakdown by sector Breakdown by type Singapore Retail 6% 9% Projects unde
Slide 34: Significant Development Pipeline Across Core Markets
Significant Development Pipeline Across Core Markets Contributions From ASB’s Investment and Trading Projects In The Coming Years Clear timeframe to Phase 1 income contribution ~434,0001 sqm ~57,000 sqm Developable GFA Developable GFA ~S$109mm Quality portfolio with FY 2018 PATMI Expected Comple
Slide 35: Potential Benefits To ASB from CapitaLand's Integrated Development Capabilities
Potential Benefits To ASB from CapitaLand’s Established Integrated Development Capabilities Case study: CSGKC ▪ Iconic project jointly initiated by leaders of Guangdong and Singapore Overview ▪ Phase 1 consists of 6.27 sqkm, and includes OneHub developed by ASB ▪ OneHub Phase 1 is completed ▪ OneHub
Slide 36: Potential Benefits To CapitaLand from ASB's Industrial Promotion Capabilities
Potential Benefits To CapitaLand from ASB’s Strong Industrial Promotion Capabilities Case study: Master-planning projects in Ningbo and Jiaxing, China ▪ CapitaLand is set to broaden its master planning and urban design An artist’s impression of the proposed business park in Ningbo, comprising capabi
Slide 37: Achieves Immediate Scale In New Economy Sectors
Business Parks AUM Achieves Immediate Scale In New Economy Sectors + Logistics AUM = S$13bn1 Sizeable Platforms And Proven Track Record Business Park S$9bn Logistics S$4bn AUM AUM AUM (S$bn) AUM (S$bn) Increasing demand from Strong growth in e-commerce knowledge economy and driving demand for sp
Slide 38: Greater Potential To Grow Fee Income
Greater Potential To Grow Fee Income Top 10 Global And Asia’s Leading Real Estate Investment Manager Listed Trusts And Funds AUM (S$bn)1 Listed Trusts and Fund Management Fees 2 (S$mm) 73 326 16 +28% 99 +43% 57 228 41 167 0.0 0.0 0.0 0.0 FY 2014 FY 2018 FY 2014 FY 2018 (Enlarged Group) (Enlarged Gro
Slide 39: A Diversified Portfolio That Provides Earnings Resilience
A Diversified Portfolio That Provides Earnings Resilience Developed Markets Emerging Markets Total Assets1 Total EBITDA2 51% 58% 49% CapitaLand 42% S$64.6bn S$4.2bn 53% 47% Enlarged Emerging Markets Group 60% Developed Markets 40% S$77.6bn China 48% S$5.1bn Singapore 37% India 2% Australia / Southea
Slide 40: Reinforces High Quality, Recurring Income
Reinforces High Quality, Recurring Income Backed By An Efficient Operating And Disciplined Capital Recycling Business Model CapitaLand Enlarged Group Unrealised S$1.0bn Unrealised revaluation Operating revaluation S$0.9bn gains / PATMI gains / Operating impairments 46% 47% impairments PATMI 33% 32%
Slide 41: Enhanced Potential For Active Portfolio Reconstitution
Enhanced Potential For Active Portfolio Reconstitution Across All Sectors To Strengthen Returns Portfolio Gains In Enlarged Group’s Investment Properties To Be A Key Component of ROE Gross Divestments In Portfolio Gains In FY 2018 (S$4.8bn1) FY 20182 (S$mm) Represents 21% 0.8 Enlarged of pro forma 4
Slide 42: Gross Divestments In FY 2018
Gross Divestments In FY 2018 (S$4.8bn1) Potential For Portfolio Gains From Enlarged Group’s Investment Properties Others² Others3 By parent to South 3rd parties 4% Lodging 5% By private funds Korea Retail 14% 8% 7% 61% to 3rd parties China 48% Vietnam 44% By parent 9% to REITs4 16% By By By Geograph
Slide 43: Strengthens Digital Capabilities For Business Innovation
Strengthens Digital Capabilities For Business Innovation Provision Of Integrated Services To Meet Different And Evolving Real Estate Requirements Leveraging In-house Smart “Office Of The Future” Ecosystem Technologies To Enhance Tenant Connectivity And Experience C3 at Innov Center, CapitaStar Capit
Slide 44: Expansion Of Commercial Platform To Complementary Subsectors And Business Parks
Commercial AUM + Expansion Of Commercial Platform To Complementary Business Park AUM = S$35bn Subsectors And Business Parks 28% of Total AUM1 CBD FWP / Office OOTF3 +58% AUM • 7 countries • 12 countries Centres Of • CBD • CBD, Excellence suburban offices, business parks • AUM: S$22.2bn • AUM: S$35.1
Slide 45: Bringing Together Complementary Development And Planning Capabilities
Bringing Together Complementary Development And Planning Capabilities To Create Additional Value Artist’s impression of the proposed business park in Ningbo Brings CapitaLand’s integrated Brings ASB’s strong industrial development core competencies in development and promotion residential, comme
Slide 46: Reinforces Proactive Sustainability Leadership
Reinforces Proactive Sustainability Leadership Green Buildings Green building ratings Green building ratings >160¹ ~79¹ Females in total workforce: Females in total workforce Human Capital 53%¹ 47%³ Training hours per staff annually Total # of training hours for all staff >50¹ 30,506³ Reduction in c
Slide 47: Continuous Corporate Social Responsibility Stewardship
Continuous Corporate Social Responsibility Stewardship • The philanthropic arm of CapitaLand was established in 2005 to • A charitable foundation of Ascendas-Singbridge committed to further CapitaLand’s community development commitment to transforming lives of less privileged through improving livin
Slide 48: Can We Continue To Grow?
Can We Continue To Grow? Confident Of Overcoming Slight NAV Dilution NAV Per Share (S$) Multi-pronged Strategy To Deliver NAV And ROE Growth 4.55 4.36 3.94 ▪ Revenue and cost synergies Harness Synergies ▪ Historical fee income CAGR of 8%2 on enlarged S$73.0bn AUM base (AUM historical CAGR of 9% 2) E
Slide 49: ASB Portfolio
ASB Portfolio International Tech Park Pune, Hinjawadi, India 49
Slide 50: Ascendas-Singbridge | Business Park
AUM = S$9bn Ascendas-Singbridge | Business Park 38% of Total AUM1 International Tech Park Bangalore, 38mm sqft India Total GFA2 OneHub Saigon, Vietnam Ascendas OneHub GKC, Guangzhou, China Galaxis, Singapore Ascendas Innovation Tower, Xi’an, ONE@Changi City, Changi Business Park, International Tech
Slide 51: Ascendas-Singbridge | Logistics
AUM = S$4bn Ascendas-Singbridge | Logistics 14% of Total AUM1 25mm sqft Logistic properties in key UK distribution centres, Total GFA2 United Kingdom Vinplex, India Victory Park, Upwell Street, Grade-A warehouses, Arshiya Free 52 Fox Drive, Australia Trade Warehousing Zone, India Lower Don Valley, U
Slide 52: Ascendas-Singbridge | Industrial
AUM = S$3bn Ascendas-Singbridge | Industrial 14% of Total AUM1 Ascendas-Xinsu Portfolio, China 18mm sqft Total GFA2 Nusajaya Tech Park, Johor, Malaysia Infineon, Singapore TechPlace II, Singapore FoodAxis @ Senoko, Singapore Note: 1. Based on AUM for ASB as at 31 Dec 2018. 2. Based on GFA of complet
Slide 53: Ascendas-Singbridge | Office
AUM = S$4bn Ascendas-Singbridge | Office 15% of Total AUM1 6mm sqft Total GFA2 Ascendas Innovation Place, Artist’s Impression ICON Yeoksam, South Korea Shanghai, China Artist’s Impression of 79 Robinson Road, Singapore Citibank Center, South 100 Wickham Street, Australia The Campus at Sorrento Gatew
Slide 54: Ascendas-Singbridge | Lodging
AUM = S$2bn Ascendas-Singbridge | Lodging 7% of Total AUM1 5,325 Total Units Ibis Ambassador Seoul Insadong, South Korea Novotel Sydney Central, Australia Hotel Sunroute Ariake, Tokyo, Japan Novotel Sydney Parramatta, Park Hotel Clarke Quay, Singapore Australia Note: 1. Based on AUM for ASB as at 31
Slide 55: Ascendas-Singbridge | Others
AUM = S$3bn Ascendas-Singbridge | Others¹ 12% of Total AUM2 4mm sqft Total GFA3 China-Singapore Guangzhou Knowledge City, China Raffles City Chongqing, China Note: 1. Includes data centres, retail, residential and land for sale. 2. Based on AUM for ASB as at 31 Dec 2018 including Raffles City Chongq
Slide 56: List Of Properties In Singapore (Excluding Listed Trusts)
List Of Properties In Singapore (Excluding Listed Trusts) Properties Asset class % stake GFA (sqm) Investment properties 9 Tai Seng Drive Data Centre 100.0% 218,905 Galaxis Business Park 75.0% 68,835 Ascent Business Park 100.0% 51,564 Nucleos Business Park 100.0% 46,182 ICON@IBP Business Park 100.0%
Slide 57: List Of Properties In China (Excluding Listed Trusts)
List Of Properties In China (Excluding Listed Trusts) Properties Asset class % stake GFA (sqm) Investment properties Ascendas-Xinsu Portfolio Industrial 23.0% 393,279 Singapore-Hangzhou Science & Technology Park (Phase 1 & 2) Business Park 80.0% 297,166 Dalian Ascendas IT Park Business Park 50.0% 23
Slide 58: List Of Properties In India (Excluding Listed Trusts)
List Of Properties In India (Excluding Listed Trusts) Properties Asset class % stake GFA (sqm) Investment properties International Tech Park Pune, Hinjawadi Phase 1 - 3 Business Park 78.5% 176,739 Vinplex Logistics 50.7% 120,394 International Tech Park Gurgaon-SEZ 1 Phase 1 Business Park 30.0% 88,07
Slide 59: The End
The End 59