Metro Holdings Ltd · SGX:M01
Metro — FY2010 Earnings Presentation
49 slides from Metro's earnings presentation, May 24, 2010
Slide 1: FY2010 Results Presentation - Financial Statement and Related Announcement
Print this page FY2010 Results Presentation * Financial Statement And Related Announcement * Asterisks denote mandatory information Name of Announcer * METRO HOLDINGS LIMITED Company Registration No. 197301792W Announcement submitted on behalf of METRO HOLDINGS LIMITED Announcement is submitted with
Slide 2: Metro Holdings Limited FY2010 Results Presentation
METRO HOLDINGS LIMITED FY2010 RESULTS PRESENTATION 24 May 2010
Slide 3: Contents
Contents About Metro Property Development & Investment Retail Operations Financial Highlights Market Outlook Growth Strategies Outlook 2
Slide 4: Who We Are
Who We Are We are… A property development and investment group, backed by an established retail track record - Strong presence in China, Indonesia, Singapore and the Asia- Pacific region 3
Slide 5: Our Regional Presence
Our Regional Presence List of Properties • Metro City, Beijing • 1 Financial Street, Beijing • Metropolis Tower, Beijing • ECMall, Beijing • Metro City, Shanghai BEIJING • Metro Tower, Shanghai • GIE Tower, Guangzhou • Gurney Park, Penang SHANGHAI List of Investments GUANGZHOU • Shui On Land • Crown
Slide 6: Property Development & Investment
Property Development & Investment
Slide 7: Portfolio Overview
Portfolio Overview Completed Investment Properties: % owned Tenure Site Area Lettable No. of Occupancy Valuation by Grp (1) (“sqm”) Area Tenants (1) Rate (%) (1) (S$’m) (“sqm”) (100%) Metro City, 36 yr term 60% 15,342 40,319 86 86.8 234 (1) Shanghai from 1993 Metro City, 40 yr term 50% 32,484 116,97
Slide 8: Portfolio Overview
Portfolio Overview Completed Investment Properties under Associated Companies: % owned Tenure Site Area Lettable Area No. of Occupancy by Grp(1) (“sqm”) (“sqm”) Tenants (1) Rate (%) (1) Gurney Plaza 49% Freehold 7,660 12,577 53 98.7 Extension, Penang 1 Financial Street, 50 yr term 45% 12,420 77,043
Slide 9: Portfolio Overview
Portfolio Overview Investment Property Under Development under Associated Companies: Location % owned by Tenure Lettable Area Scheduled No. of Tenants Grp(1) (sqm) Opening Under LOI Tesco Living Anshan, 40 yr term Mall, Anshan 10.7% 47,971 Sept 2010 NA PRC from 2009 (1) As at March 31, 2010 8
Slide 10: Property Investment
Property Investment Property Valuation (100%): FY2009 (S$’m) FY2010 (S$’m) (%) Metro City, Shanghai 226 234 +3.5 Metro City, Beijing 334 337 +0.9 GIE Tower, 99 96 -3.0 Guangzhou Metro Tower, 181 178 -1.7 Shanghai Metro City,EC Mall, Beijing (1) - 329 N.A. Beijing Metropolis Tower, - 124 N.A. Beijing
Slide 11: Occupancy Rate
Occupancy Rate FY2009 (%) FY2010 (%) Metro City, Shanghai 94.2 86.8 Metro City, Beijing 65.6 74.6 GIE Tower, Guangzhou 82.7 86.4 Metro Tower, Shanghai 98.6 73.9 ECMall, Beijing (1) - 63.2 Metropolis Tower, Beijing (1) - 59.1 Gurney Plaza Extension, 98.1 98.7 Penang 1 Financial Street, Beijing 18.0 4
Slide 12: Property Investment - Expiry Profile
Property Investment- Expiry Profile Expiry Profile by Gross Rental Income: 1H2011 (%) 2H2011 (%) Metro City, Shanghai 18.72 6.81 Metro City, Beijing 0.13 0.53 GIE Tower, Guangzhou 4.02 15.49 Metro Tower, Shanghai 0.89 2.63 ECMall, Beijing NIL NIL Metropolis Tower, Beijing NIL NIL Metro City, Beijing
Slide 13: Metro City, Shanghai
Metro City, Shanghai Top 10 Tenants: Total: 86.8% Name of Tenant Trade Sector % of total lettable area Buynow Computer Electronics & IT World 18.79% Tenant Mix by Lettable Area Physical Fitness & Leisure & Entertainment/ 10.00% (as at March 31, 2010) Beauty Centre Sport & Fitness Kodak Cinema World
Slide 14: Metro Tower, Shanghai
Metro Tower, Shanghai Top 10 Tenants: Total: 73.9% Name of Tenant Trade Sector % of total lettable area Exxon Mobil Petroleum & Chemicals 20.55% Tenant Mix by Lettable Area Swatch Group Consumer Products 9.78% (as at March 31, 2010) KFC F&B 8.44% AIA Banking, Insurance and 7.9% Financial Services 6.
Slide 15: Metro City, Beijing
Metro City, Beijing Top 10 Tenants: Name of Trade Sector % of Total: 74.6% Tenant lettable area Hong Xing Home Furnishings 30.12% Parkson Department Store Tenant Mix by Lettable Area Department 21.49% Store (as at March 31, 2010) Walmart Supermarkets 15.43% Supercentre 0.8% Gome Electronics & IT 3.8
Slide 16: GIE Tower, Guangzhou
GIE Tower, Guangzhou Top 10 Tenants: Total: 86.4% Name of Trade Sector % of Tenant lettable area Jin Yu Restaurant F&B 12.68% Tenant Mix by Lettable Area Ericsson IT Services & Telecommunication 11.89% (as at March 31, 2010) Guang Dong Banking, Insurance & 6.34% Development Bank Financial Services N
Slide 17: ECMall, Beijing
ECMall, Beijing Top 10 Tenants: Total: 63.2% Name of Trade Sector % of Tenant lettable area Golden Jaguar F&B/Food Court 17.94% C&A Fashion & Shoes 5.96% Tenant Mix by Lettable Area Best Seller / Fashion & Shoes (as at March 31, 2010) Selected 4.43% 0.1% H&M Fashion & Shoes 4.37% Shi Mei Hui Food F&
Slide 18: Metropolis Tower, Beijing
Metropolis Tower, Beijing Tenants: Total: 59.1% Name of Trade Sector % of Tenant lettable area Tenant Mix by Lettable Area New Oriental Services/Education 36.47% (as at March 31, 2010) Regus Others 5.89% Dingxintianxia Consumer products 5.89% BNTE IT Services & 5.9% 4.11% 5.9% Telecommunication 5.9%
Slide 19: Tesco Projects, China
Tesco Projects, China Ownership Split: Metro Holding – 10.7%, Tesco Plc – 50.0%, HSBC NF / Nan Fung – 32.2%, Private Bankers – 7.1% Joint investment with Tesco Plc, HSBC NF China Real Estate Fund / Nan Fung and HSBC private banking clients QinHuangDao Fushun Anshan 5-storey & 2 5-storey & a 4-storey
Slide 20: Retail Operations
Retail Operations
Slide 21: Retail Operations
Retail Operations Upgraded merchandise selections for customers in all our retail operations, through close collaboration with international and local business partners: Singapore: - Indonesia: - Metro Paragon Metro Pondok Indah Metro Woodlands Metro Senayan Square Metro Sengkang Metro Bandung Super
Slide 22: Retail Operations - Updates
Retail Operations- Updates Singapore: - New Metro City Square opened in September 2009 New Monsoon Accessorize shop in Ion opened in September 2009 Trading environment stabilised Indonesia: - Stable economic environment in Indonesia Gradually improving retail environment Opening of Metro Gandaria, J
Slide 23: Financial Highlights
Financial Highlights %& PM] METRO rele
Slide 24: FY2010 Results Highlights
FY2010 Results Highlights Property division remains steady Higher rental income boosted by an increase in the fair value of the Group’s portfolio of short term investments Steady increase of occupancy of newly completed projects, ECMall Beijing and Metropolis Tower Retail sales positively impacted b
Slide 25: Financial Highlights
Financial Highlights Profit & Loss Accounts: 4QFY10 4QFY09 Change FY2010 FY2009 Change (S$’000) (S$’000) (%) (S$’000) (S$’000) (%) Turnover 39,917 34,680 +15.1 150,981 138,508 +9.0 Profit Before Tax 68,234 28,545 +139.0 114,951 38,947 +195.2 Net Profit Attributable to 55,977 38,183(1) +46.6 93,861 3
Slide 26: 4Q Revenue Breakdown
4Q Revenue Breakdown S$’m 50 40 30 25.9 19.7 20 10 14.1 15.0 0 4QFY2010 4QFY2009 Property Revenue Retail Revenue Retail turnover rose 31.4% y-o-y Increase in retail revenue mainly contributed by sales at the new Metro City Square department store Property revenue declined marginally by 6.3% y-o-y De
Slide 27: Full Year Revenue Breakdown
Full Year Revenue Breakdown S$’m 200 150 96.3 86.2 100 50 54.7 52.3 0 FY2010 FY2009 Property Revenue Retail Revenue Retail turnover rose 11.8% y-o-y Improved consumer sentiments Increase in retail revenue contributed by sales at the new Metro City Square department store Property revenue rose 4.4% y
Slide 28: Turnover By Business Segments
Turnover By Business Segments FY2009 S$86.2m S$52.3m 62.2% 37.8% FY2010 S$54.7m 36.2% Property Retail S$96.3m 63.8% Property Retail 27
Slide 29: PBT by Business Segments
PBT by Business Segments FY2009 FY2010 S$6.2m 5.4% S$108.8m 94.6% Property Retail 28
Slide 30: Balance Sheet Highlights
Balance Sheet Highlights As at Mar 31, 2010 As at Mar 31, 2009 Change (%) (S$’000) (S$’000) Property, plant and 13,720 11,965 +14.7 equipment Investment Properties 630,773 514,480 +22.6 Non-current Assets 420,686 515,731 -18.4 Current Assets 298,502 271,266 +10.0 Total Assets 1,363,681 1,313,442 +3.
Slide 31: Financial Highlights
Financial Highlights Financial Ratios: FY2010 FY2009 Earnings per share after tax and minority 14.9 6.25 interests (cents) Return on shareholders’ funds (%) 9.75 4.35 Return on total assets (%) 7.01 3.09 Net assets per share (cents) 156.2 148.3 Debt/Equity ratio (times) 0.04 0.01 Final/Interim Divid
Slide 32: Dividend Payout
Dividend Payout Gross Cents Per Share Payout Rate 45.0% Ordinary Dividend Special Dividend 6.0 40.9% 40.0% 37.7% 5.0 32.5% 35.0% 4.0 3.0 3.0 3.0 30.0% 3.0 31.8% 1.0 25.0% 16.3% 2.0 20.3% 20.0% 1.0 2.0 2.0 2.0 2.0 2.0 2.0 15.0% 0.0 FY2005 FY2006 FY200731 FY2008 FY2009 FY2010 FY2010
Slide 33: Market Outlook
Market Outlook
Slide 34: Market Outlook, Shanghai
Market Outlook, Shanghai Market conditions for Grade A office on a stabilising trend (1) (3) Q1 2010 saw rental levels decrease slightly (Q1 2010: RMB 183/US$26.7 per sq m per month; Q4 2009: RMB 186/US$27.3 per sq m per month) Average Availability ratio reached 13.9%, representing a decrease of 1.6
Slide 35: Market Outlook, Shanghai
Market Outlook, Shanghai World Expo factor (4) Shanghai has spent over US$95 billion on infrastructure investment in preparation for the 2010 World Expo Expanded subway network will improve accessibility, which drives higher rent and capital values in return A great marketing event to further boost
Slide 36: Market Outlook, Beijing
Market Outlook, Beijing Positive outlook for Grade A office market conditions in Beijing (1) (2) A marked increase in demand for office space eased pressure on landlords Rental rates increased by 1.62% q-o-q to reach RMB149.5 (US$21.9) per sq m per month Overall Availability ratio for grade A office
Slide 37: Market Outlook, Guangzhou
Market Outlook, Guangzhou Increase in demand and rental rates for Grade A office space (1) Office market supported by sustaining economic recovery Demand increased, matched by sufficient new supply Total net absorption in Q1 2010 was 50,000 sq m, 3,200 sq m more than in previous qtr Robust demand fo
Slide 38: Market Outlook, China
Market Outlook, China “China economy: Quick View- Strong, but slower, output growth” - Economic Intelligence Unit, May 13, 2010 “A rebound in expenditure n property development continues to bolster growth in a number of industrial sectors. The EIU forecasts that output will expand 13.5% this year (a
Slide 39: Market Outlook, Retail
Market Outlook, Retail Singapore: Retail sales up in Q1 2010; Increased Customer satisfaction Retail sales up 4.8% in February 2010 Strongest upswing since September 2008 (1) Rose by 4.8% compared with the same corresponding month of the previous year Excluding sales of motor vehicles, retail sales
Slide 40: Market Outlook, Retail
Market Outlook, Retail Indonesia: Retail sales poised for gradual growth (4) Economy grew 5.7 percent y-o-y in Q1 2010, the fastest pace in more than a year (5) Steady growth forecasted for Indonesia’s retail sales Key factors include • Strong underlying economic growth • Indonesia’s large populatio
Slide 41: Growth Strategies
Growth Strategies
Slide 42: Growth Strategies
Growth Strategies Property Development & Investment Retail Operations Continue to prudently Emphasis on: leverage on: - Addition of new specialties shops - Rich Retail Experience - Strong Foothold and - Enhancing Merchandise Offering Know how in China - Improving Customer Service Selection - Upgrade
Slide 43: Growth Strategies
Growth Strategies Property Development and Investment Leverage on Rich Retail Experience Optimise tenant mix Continual enhancement of lettable space Improve efficiency of mall management Capitalise on Strong Foothold in the Asia-Pacific region Opportunistic search for new projects Maintain special f
Slide 44: Growth Strategies
Growth Strategies Retail Operations Addition of new retail outlets Plans to open more outlets in Singapore when suitable real estate opportunities present themselves Opening additional Monsoon Accessorize outlets New Metro Makassa targeted to open in 2QFY2011 New Metro Gandaria, Jakarta targeted to
Slide 45: Growth Strategies
Growth Strategies Retail Operations Upgrade Customer Relationship Management (CRM) System Engage expertise in CRM to leverage on available customer data base in current CRM system Enhance card membership with launch of new platinum card Adopt New Marketing Platform Adopt new Internet (online) techno
Slide 46: Outlook
Pa DAI METRO
Slide 47: Outlook
Outlook Property Segment: Overall, rental income from Group’s four mature properties expected to grow steadily Metro City Shanghai undergoing asset enhancement activities In the process of disposal of 1 Financial Street Newly Completed projects: EC Mall, Beijing and Metropolis Tower, Beijing Newly C
Slide 48: Outlook
Outlook Retail Segment: Pickup in trading environment of retail division Improved consumer sentiments in Singapore and Indonesian economies Department store sales in Singapore register improvement across the board (1) Retail trade remains highly competitive Improved contribution from Monsoon Accesso
Slide 49: Thank You
Pa DAI METRO