City Developments Limited · SGX:C09

City Developments — H1 2016 Earnings Presentation

62 slides from City Developments's earnings presentation, Aug 11, 2016

1. Slide 1: Half Year 2016 Financial Results

   HALF YEAR 2016 FINANCIAL RESULTS ANALYST & MEDIA PRESENTATION (1 Jan – 30 June 2016) 11 August 2016

2. Slide 2: Agenda

   AGENDA • EXECUTIVE SUMMARY • FINANCIAL HIGHLIGHTS • SINGAPORE OVERVIEW • INTERNATIONAL OVERVIEW • HOTEL OPERATIONS

3. Slide 3: Executive Summary

   >] SS h | EXECUTIVE SUMMARY

4. Slide 4: Key Highlights

   Key Highlights  Resilient financial performance amidst significant macroeconomic challenges: - 32.4% increase in revenue for Q2 2016 to $1.1 billion - 10.7% increase in revenue for 1H 2016 to $1.8 billion  Property development business segment was the highest contributor to pre-tax profits: – 51.6

5. Slide 5: Resilient Performance amidst Macroeconomic Challenges

   Resilient Performance amidst Macroeconomic Challenges Summary of Financial Results Q2 Q2 % 1H 1H % 2016 2015 Change 2016 2015 Change Revenue ($m) 1,092 825 32.4 1,816 1,640 10.7 PATMI ($m) 134 133 0.2 239 257 (6.8) Basic Earnings Per Share 14.0 14.0 - 25.6 27.5 (6.9) (cents) NAV Per Share ($) 9.75 9

6. Slide 6: Portfolio Composition – 1H 2016

   Portfolio Composition – 1H 2016 Recurring Income Segments Property Hotel Rental S$ million Others Total Funds Development Operations Properties EBITDA * Local 183 30 85 10 308 Overseas 11 109 45 12 177 194 139 130 22 485 Total Assets ^ Local 6,829 572 3,305 266 10,972 AUM = Overseas 3,013 4,626 1,04

7. Slide 7: Portfolio Composition – 1H 2016

   Portfolio Composition – 1H 2016 EBITDA Total Assets Local Overseas 63% 37% Local Overseas 55% 45% • Stability from Recurring Income segments comprising 60% of EBITDA / 51% of Total Assets (excluding tax recoverable and deferred tax asset) • De-risking Singapore exposure via growing international seg

8. Slide 8: Diversified Land Bank

   Diversified Land Bank Land Area (as of 30 Jun 2016) – CDL’s Attributable Share Type of Development Land Area (sq ft) Singapore International Total % Residential 585,030 2,170,109 2,755,139 89 Commercial / Hotel 20,886 305,846 326,732 11 Total 605,916 2,475,955 3,081,871 100 Proposed GFA (sq ft) Coun

9. Slide 9: Share Price Performance

   Share Price Performance Strong Performance for YTD 2016 (1 Jan – 10 Aug 2016)  ↑ 16.2% in share price YTD HIGHEST - $9.06 (21 Apr)* $8.89 (For YTD, 10 Aug) (10 Aug)  ↑ 6.4% in share price (For YTD, 30 Jun)  YTD Highest - $9.06 (21 Apr) (↑ 18.4% from 1 Jan) $8.14 (30 Jun)  YTD Lowest - $6.68 (27

10. Slide 10: Share Price Performance

    Share Price Performance CDL vs STI (1 Jan – 10 Aug 2016) Price, Volume & Performance (Rebased) CDL STI Price Volume Daily Average Name Code Cur Open High Low Close Change % Total Volume Volume City Developments Limited C09.SGX SGD 7.65 9.06 6.61 8.89 16.21 330,063,700 2,115,793 Straits Times STI SGD

11. Slide 11: Focus for 2H 2016

    Focus for 2H 2016 Intensive Recalibration of Asset Portfolio  Global markets remain vulnerable and highly sensitive amidst multiple uncertainties  Domestic market sentiment remains affected by prevailing property cooling measures and a subdued economy  The Group maintains value driven and growth

12. Slide 12: Financial Highlights

    FINANCIAL HIGHLIGHTS

13. Slide 13: Financial Highlights – Segment Financial Results

    Financial Highlights Segment Financial Results Revenue Profit Before Tax Q2 2016 Q2 2015 Incr/(Decr) Q2 2016 Q2 2015 Incr/(Decr) $M $M % $M $M % Property Development 551.5 268.8 105.2 105.8 78.1 35.5 Hotel Operations 406.6 421.7 (3.6) 59.0 68.9 (14.4) (include CDL owned hotels) Rental Properties 92.

14. Slide 14: Revenue by Segment for 2nd Quarter

    Financial Highlights Revenue by Segment for 2nd Quarter (2014 – 2016) 700 $1,092m $825m $861m 600 552 500 422 416 406 $ million 400 327 269 300 200 93 100 92 100 41 34 26 0 Q2 2016 Q2 2015 Q2 2014 Property Development Hotel Operations Rental Properties Others Q2 2016 Q2 2015 Q2 2014 Property Develop

15. Slide 15: Profit Before Tax by Segment for 2nd Quarter

    Financial Highlights Profit Before Tax by Segment for 2nd Quarter (2014 – 2016) 140 $205m $191m $196m 120 106 100 85 78 76 $ million 80 69 59 60 32 34 33 40 20 8 10 2 0 Q2 2016 Q2 2015 Q2 2014 Property Development Hotel Operations Rental Properties Others Q2 2016 Q2 2015 Q2 2014 Property Development

16. Slide 16: EBITDA by Segment for 2nd Quarter

    Financial Highlights EBITDA by Segment for 2nd Quarter (2014 – 2016) $280m $257m $259m 160 140 117 106 120 101 94 92 $ million 100 78 80 63 66 63 60 40 12 20 6 0 (2) Q2 2016 Q2 2015 Q2 2014 Property Development Hotel Operations Rental Properties Others Q2 2016 Q2 2015 Q2 2014 Property Development 42

17. Slide 17: Revenue by Segment for Half Year

    Financial Highlights Revenue by Segment for Half Year (2014 – 2016) 1,000 $1,816m $1,640m $1,595m 900 775 798 770 766 800 700 584 567 $ million 600 500 400 300 186 199 187 200 89 76 54 100 0 1H 2016 1H 2015 1H 2014 Property Development Hotel Operations Rental Properties Others 1H 2016 1H 2015 1H 201

18. Slide 18: Profit Before Tax by Segment for Half Year

    Financial Highlights Profit Before Tax by Segment for Half Year (2014 – 2016) 260 $344m $360m $353m 220 183 181 176 180 $ million 140 106 103 100 70 73 71 71 60 18 10 20 (20) (5) 1H 2016 1H 2015 1H 2014 Property Development Hotel Operations Rental Properties Others 1H 2016 1H 2015 1H 2014 Property D

19. Slide 19: EBITDA by Segment for Half Year

    Financial Highlights EBITDA by Segment for Half Year (2014 – 2016) $485m $495m $480m 240 194 188 200 181 166 163 139 $ million 160 130 133 131 120 80 40 22 15 0 (2) 1H 2016 1H 2015 1H 2014 Property Development Hotel Operations Rental Properties Others 1H 2016 1H 2015 1H 2014 Property Development 40%

20. Slide 20: Capital Management

    Financial Highlights Capital Management As at 30/06/16 As at 31/12/15 Cash and cash equivalents (include cash and $3,357m $3,565m cash equivalents classified as asset held for sale) Net borrowings $3,016m $2,938m Net gearing ratio without taking in fair value 27% 26% gains on investment properties N

21. Slide 21: Prudent Capital Management

    Financial Highlights Prudent Capital Management Debt Expiry Profile Debt Maturity Within 1 year 2,000 Debt $ million Bond Bank Loan 33% 35% 1 to 2 years 1,500 279 320 2 to 3 years 1,000 250 440 More than 3 500 1,153 1,081 17% 15% years 951 286 755 335 451 0 72 2016 2017 2018 2019 2020 2021 onwards D

22. Slide 22: Singapore Overview

    SINGAPORE OVERVIEW

23. Slide 23: Singapore Property Market

    Singapore Property Market Property Price Index – Residential (2011 – 1H 2016) All Residential 180 160 Q1 16 Q2 16 140.6 140 140.0 120 100 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 11 11 11 11 12 12 12 12 13 13 13 13 14 14 14 14 15 15 15 15 16 16 Source : URA, Q2 2016 Based on

24. Slide 24: Number of Units

    Singapore Property Market No. of Uncompleted Private Residential Units Available (2012 – 1H 2016) Not Launched Launched & Unsold 20,000 17,467 16,587 15,499 16,000 Launched Not Total 13,944 & Unsold Launched* 13,162 2012 5,137 8,807 13,944 12,000 2013 6,124 11,343 17,467 Number of Units 2014 5,750 1

25. Slide 25: Singapore Property Development

    Singapore Property Development Residential Units Sold Sales Value* No. of Total $’000 Units* Area Sold (sq ft) 1H 2016 $ 385,728 324 342,399 1H 2015 $ 224,012 178 193,939 Sales Value Units Sold 72.2% 82.0% * Includes share of JV partners 25

26. Slide 26: Soft Launch of Gramercy Park

    Singapore Property Development Soft Launch of Gramercy Park Project Location Tenure Equity Total Total Units % Total Saleable Stake Units Sold* Sold* Area (sq ft) Gramercy Park Grange Road Freehold 100% 174 31 18 368,743 Positive Soft Launch Response:  Soft launch in end May – 30 units in the North

27. Slide 27: Strategic Acquisition of Nouvel 18

    Singapore Property Development Strategic Acquisition of Nouvel 18 Project Location Tenure Equity Total Total Saleable Stake Units Area (sq ft) Nouvel 18 Anderson Freehold 100% 156 351,054 Road  Completed acquisition of JV partner Wing Tai Land’s 50% stake for $410.96 million in July 2016  CDL now

28. Slide 28: Completed Residential Projects in 1H 2016

    Singapore Property Development Completed Residential Projects in 1H 2016 Project Location Equity Total % TOP Stake Units Sold* Obtained HAUS@SERANGOON Serangoon 70% 97 100 Mar 2016 GARDEN Garden Close Terraces Gramercy Park Grange Road 100% 174 18 May 2016 Lush Acres Fernvale Close 100% 380 100 Jun

29. Slide 29: Upcoming Residential Project Launch in 2H 2016

    Singapore Property Development Upcoming Residential Project Launch in 2H 2016 Project Location Tenure Equity Total Units Max. Gross Floor Expected Stake Area (sqm) TOP Forest Woods Lorong Lew Lian 99-year 50% 519 42,005 2020 leasehold  Site acquired via Government Land Sales (GLS) programme in Nove

30. Slide 30: Inventory of Launched Residential Projects

    Singapore Property Development Inventory of Launched Residential Projects – As of 30 Jun 2016 Project Equity Total Units % Total Unsold CDL’s Share of Stake Units Sold Sold Inventory Unsold Inventory St. Regis Residences 33% 173 161 93.1 12 4.0 The Oceanfront @ Sentosa Cove 50% 264 263 99.6 1 0.5 On

31. Slide 31: Residential Projects to be Completed in 2H 2016

    Singapore Property Development Residential Projects to be Completed in 2H 2016 Project Location Equity Stake Total Units % Sold* Expected TOP Jewel @ Buangkok Compassvale Bow 100% 616 98 Q3 2016 Echelon Alexandra View 50% 508 99 Q4 2016 Bartley Ridge Mount Vernon Road 30% 868 99 Q4 2016 Jewel @ Buan

32. Slide 32: Singapore Office Market

    Singapore Office Market Average Office Rental in CBD (2012 – 1H 2016) 14.00 $12.04 12.00 $10.51 $10.38 10.00 $9.74 $9.26 $9.65 $8.37 $8.50 $7.90 $7.97 8.00 Marina Bay/ Raffles Place (Grade A) 6.00 Whole Island 4.00 2.00 0.00 2012 2013 2014 2015 1H 2016 Source : JLL Research, Q2 2016 32

33. Slide 33: Singapore Office Market

    Singapore Office Market Office Space Demand & Supply (2012 – 1H 2016) Private & Public Sector Cumulative Supply Occupancy 85,000 80,095 81,300 81,365 81,408 78,254 80,000 72,980 73,647 73,981 75,000 72,205 70,913 70,000 65,000 60,000 55,000 CDL’s Office Properties 50,000 Average Occupancy 45,000 97.

34. Slide 34: Singapore Retail Market

    Singapore Retail Market Retail Space Demand & Supply (2012 – 1H 2016)* Private & Public Sector Cumulative Supply Occupancy 66,000 64,788 64,271 64,000 63,658 62,000 61,333 60,052 59,955 59,632 59,762 60,000 58,599 58,000 57,060 56,000 CDL’s Retail Properties Average Occupancy 54,000 93.8% (National

35. Slide 35: Singapore Industrial Market

    Singapore Industrial Market Industrial Space Demand & Supply (2012 – 1H 2016) Cumulative Supply Occupancy 220,000 200,000 195,194 189,973 180,577 180,000 167,983 168,768 170,803 161,223 160,448 160,000 149,361 146,616 Square Feet ('000) 140,000 120,000 100,000 CDL’s Industrial Properties Average Occ

36. Slide 36: Rental Properties Revenue by Sector

    Rental Properties Revenue by Sector for Half Year (2014 – 2016) $186m $199m $187m 100 92 87 78 80 Office S$ million 60 54 56 55 Retail 38 Industrial 40 29 30 REIT/Hotel 18 20 12 11 4 4 4 Others ^ 0 1H 2016 1H 2015 1H 2014 1H 2016 1H 2015 1H 2014 Office 42% 46% 47% Retail 29% 28% 29% Industrial 2% 2%

37. Slide 37: South Beach – Successful Leasing

    South Beach – Successful Leasing Integrated Development to Fully Complete by Q4 2016  Seamless connection to Esplanade and City Hall MRT stations via MRT link – opened in July 2016  Leasing of retail space gains momentum South Beach Tower  Office space is 99% leased The South Beach  Rebranded as

38. Slide 38: International Overview

    INTERNATIONAL OVERVIEW

39. Slide 39: Projects Launched To Date

    International Property Development Projects Launched To Date* Project City Equity Total Total % Sold Est. Total Expected Stake Units Units Sold / Saleable Completion Reserved Area (sq ft) Australia Ivy and Eve Brisbane 33%# 472 423 90 348,678 1H 2018 China Hong Leong City Suzhou 70% 1,374 945 69 1,3

40. Slide 40: Unlaunched Residential Projects

    International Property Development Unlaunched Residential Projects Project Location Tenure Equity Total Est. Total Saleable Area / Expected Stake Units GFA^ / Site Area+ (sq ft) Completion China Hong Leong City Suzhou 70-year lease 70% 430 448,844 Q4 2017 Center (Phase 2) Eling Residences Chongqing

41. Slide 41: Australia – Ivy and Eve

    International Property Development Australia Merivale Street Residential Project – Ivy and Eve City Equity Total Total Units % Expected Stake Units Sold Sold Completion Brisbane 33%# 472 423 90 1H 2018  Freehold project with two 30-storey towers of 1-, 2- and 3- bedroom apartments in the heart of S

42. Slide 42: China – Profits to be booked from 2H 2016

    International Property Development China – Profits to be booked from 2H 2016 Suzhou – Hong Leong City Center (丰隆城市中心) Equity Total Total Units % Sold Expected Stake Units Sold Completion 70% 1,374 945 69 Q4 2016  Mixed-use waterfront project in Suzhou Industrial Park  Phase 1: Tower 1 (residential

43. Slide 43: China – Pipeline Projects

    International Property Development China – Pipeline Projects Chongqing – Eling Residences (鹅岭峰) Tenure Equity Total Est. Total Saleable Stake Units Area (sq ft) 50-year lease 100% 126 354,814 (residential) (32,963 sqm)  Showflats are ready  Site inspections by local authorities completed  To be l

44. Slide 44: Japan – Pipeline Project

    International Property Development Japan – Pipeline Project Tokyo – Shirokane Tenure Equity Stake Site Area (sqm)  Prime site located in the affluent Minato ward Freehold 94.5% 16,815  Proposed development is targeted at the luxury segment  Site to include a public park and open space to support

45. Slide 45: UK – Launched Projects

    International Property Development UK – Launched Projects Reading – Hanover House, 202 Kings Road, Reading RG1 4NN City Equity Stake Total Total Units Sold % Expected Units Sold Completion Completed in London 100% 82 82 100 Jul 2016  To date, 36 buyers have completed their purchases and the remaind

46. Slide 46: UK Pipeline Residential Projects – Building Works Commenced

    International Property Development UK Pipeline Residential Projects – Building Works Commenced Project City Tenure Equity Total Est. Total Saleable % Expected Stake Units Area (sq ft) Completed* Completion Belgravia London Freehold 100% 6 12,375 55 Q1 2017 Knightsbridge London Freehold 100% 3 5,193

47. Slide 47: UK – Teddington Riverside

    International Property Development UK – Pipeline Projects Teddington Riverside, Teddington TW11 Tenure Equity Total Units Est. Total Saleable Stake Area (sq ft) Freehold 100% 239 240,000 sq ft  Riverside development with 217 apartments, 6 houses, 16 affordable units and 287 secure carpark spaces 

48. Slide 48: UK – Stag Brewery, Mortlake

    International Property Development UK – Pipeline Projects Stag Brewery, Mortlake, London SW14 Tenure Equity Stake Est. Total Saleable Area (sq ft) Freehold 100% 1,000,000 sq ft  Master planning process commenced  The scheme has been very well received by both local residents and planning officers

49. Slide 49: UK – Pavilion Road, Knightsbridge

    International Property Development UK – Pipeline Projects 28 Pavilion Road, Knightsbridge, London SW1 Tenure Equity Stake Est. GFA (sq ft) Freehold 100% 135,000  First luxury home care development to be built in Central London – planning consent obtained  Potential GDV of up to £200 million  Stra

50. Slide 50: UK – Development House, Shoreditch

    International Property Development UK – Pipeline Projects Development House, Leonard Street in Shoreditch Tenure Equity Stake Est. Total Lettable Area (sq ft) Freehold 100% 90,000 sq ft  Acquired first commercial redevelopment project in UK – acquisition completed on 11 May 2016  Strategic locatio

51. Slide 51: Hotel Operations

    2 kg ™~ \ \\ \s, Ss IS ~\ HOTEL OPERATIONS

52. Slide 52: M&C Hotel Operations – Trading Performance

    M&C Hotel Operations Trading Performance 1H 2016 1H 2015 Change Revenue £418m £404m 3.5% PATMI £30m £36m (16.7%)  RevPAR decreased for 1H 2016 mainly due to: Reported Currency Constant Currency New York ↓ 9.4% ↓ 15.8% Regional US ↑ 9.9% ↑ 2.1% Total US ↓ 1.1% ↓ 8.2% London ↓ 5.3% ↓ 5.3% Rest of Eur

53. Slide 53: M&C Hotel Operations – Developments

    M&C Hotel Operations Developments – Progressing well Seoul, South Korea  The lifestyle hotel and serviced apartment with 306 and 209 keys respectively  South Korean Construction Deliberation Commission (CDC) is in broad agreement with the development proposal, subject to a small number of addition

54. Slide 54: Assets Enhancement (On-going)

    M&C Hotel Operations Assets Enhancement (On-going) Grand Copthorne Waterfront Singapore  Work on main lobby and F&B outlets on the main entrance level, which started in Dec 2015, was substantially completed in May 2016  These F&B outlets opened for business in Jun 2016  Work on tea lounge and fun

55. Slide 55: Assets Enhancement (On-going)

    M&C Hotel Operations Assets Enhancement (On-going) ONE UN New York  Refurbishment of the guestrooms located in the east tower will be substantially completed in Q3 2016 ONE UN New York Grand Millennium Kuala Lumpur  10 floors of the guestrooms have been completed with the remaining 3 floors schedu

56. Slide 56: Assets Enhancement (On-going)

    M&C Hotel Operations Assets Enhancement (On-going) Copthorne Hotel Auckland Harbour City  Closed for a major NZ$40 million refurbishment programme in Q3 2015  Construction has commenced, with 50% of the internal partitions and services having been installed to-date  The earthquake strengthening a

57. Slide 57: Grand Millennium Auckland

    M&C Hotel Operations Grand Millennium Auckland  Will assume the lease of Rendezvous Grand Hotel Auckland with effect from Sep 2016  This is the largest hotel in New Zealand, with 452 guestrooms and is owned by CDL Hospitality Trust  Will be rebranded as “Grand Millennium Auckland”, being the firs

58. Slide 58: New Hotel – M Social Singapore

    M&C Hotel Operations New Hotel – M Social Singapore  Hip 293-room lifestyle hotel designed by Philippe Starck – opened in June 2016  Located by the Singapore River, in the vibrant Robertson Quay district  Unique digital-led, experience-rich hotel environment – appeals to global travellers with a

59. Slide 59: Hotel Room Count and Pipeline

    M&C Hotel Operations Hotel Room Count and Pipeline Hotels Rooms 30 Jun 31 Dec 30 Jun 31 Dec Hotel and Room Count 2016 2015 2016 2015 By region: ● New York 4 4 2,238 2,238 ● Regional US 15 15 4,467 4,463 ● London 8 8 2,651 2,651 ● Rest of Europe 18 18 2,867 2,867 ● Middle East * 25 22 7,129 6,450 ● S

60. Slide 60: CDL Hospitality Trusts – Trading Performance

    CDL Hospitality Trusts Trading Performance S$’000 1H 2016 1H 2015 Change Gross Revenue 87,123 81,213 7.3% Net Property 65,034 66,118 (1.6%) Income (NPI) Artist’s Impression Claymore Connect Gross revenue increased mainly due to :  Contribution from Hilton Cambridge City Centre, United Kingdom, whic

61. Slide 61: 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

62. Slide 62: www.cdl.com.sg

    www.cdl.com.sg M Social Singapore

City Developments — H1 2016 Earnings Presentation on 6ix