Metro Holdings Ltd · SGX:M01
Metro — H1 FY2010 Earnings Presentation
42 slides from Metro's earnings presentation, Nov 13, 2009
Slide 1: SGX Announcement: 1HFY2010 Results Presentation
MISCELLANEOUS Page 1 of 1 MISCELLANEOUS * Asterisks denote mandatory information Name of Announcer * METRO HOLDINGS LIMITED Company Registration No. 197301792W Announcement submitted on METRO HOLDINGS LIMITED behalf of Announcement is submitted with METRO HOLDINGS LIMITED respect to * Announcement i
Slide 2: 1HFY2010 Results Presentation
METRO HOLDINGS LIMITED 1HFY2010 RESULTS PRESENTATION November 13, 2009
Slide 3: Contents
Contents About Metro Property Development & Investment Retail Operations Financial Highlights Market Outlook Growth Strategies Outlook 2
Slide 4: About Metro
x8 DM] METRO ABOUT METRO
Slide 5: 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 and Singapore 4
Slide 6: Regional Presence
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 SHANGHAI • Gurney Park, Penang • Liaoning/Hebei Malls GUANGZHOU List of Investments • S
Slide 7: Property Development & Investment
PROPERTY DEVELOPMENT & INVESTMENT
Slide 8: Portfolio Overview
Portfolio Overview Completed Properties: % owned Tenure Site Area Lettable No. of Occupancy Valuation by Grp (sqm) Area (sqm) Tenants (1) Rate (%) (1) (S$’m) (100%) (2) Metro City, 36 yr term 60% 15,342 38,825 106 94.2 226 Shanghai from 1993 Metro City, 40 yr term 50% 32,484 104,165 18 88.7 334 Beij
Slide 9: Portfolio Overview: Newly-Completed Properties
Portfolio Overview Newly-Completed Properties: Completion % Tenure Site Area Lettable Area No. of Occupancy No. of Date owned (sqm) (sqm) Tenants (1) Rate (%) (1) Tenants by Grp Under LOI(2) 1 Financial Late 50 yr term Approx Street, 45% 12,420 70,675 13 26.2 Beijing 4QFY2009 from 2002 4.9% Metropol
Slide 10: Occupancy Rate
Occupancy Rate 1HFY2009 (%) 1HFY2010 (%) Metro City, Shanghai 99.3 94.2 Metro City, Beijing 75.3 88.7 GIE Tower, Guangzhou 68.6 83.1 Metro Tower, Shanghai 100.0 96.6 Gurney Plaza Extension, - 98.7 Penang (1) 1 Financial Street, Beijing (2) - 26.2 Metropolis Tower, Beijing (3) - 4.1 ECMall, Beijing (
Slide 11: Metro City, Shanghai
Metro City, Shanghai Top 10 Tenants: Name of Tenant Trade Sector % of total lettable area Buynow Computer Electronics & IT World 19.05% Physical Fitness & Leisure & Entertainment/ 10.15% Beauty Centre Sport & Fitness Tenant Mix by Lettable Area Kodak Cinema World Leisure & Entertainment/ (as at Sept
Slide 12: Metro Tower, Shanghai
Metro Tower, Shanghai Top 10 Tenants: Name of Tenant Trade Sector % of total lettable area Microsoft IT Services & 24.81% Telecommunication Exxon Mobil Petroleum & Chemicals 20.65% Tenant Mix by Lettable Area Swatch Group Consumer Products 9.81% KFC F&B 8.49% (as at Sept 30, 2009) AIA Banking, Insur
Slide 13: Metro City, Beijing
Metro City, Beijing Top 10 Tenants: Name of Trade Sector % of Tenant lettable area Hong Xin Home Furnishings 33.60% Parkson Department Store Department 24.13% Store Tenant Mix by Lettable Area Walmart Supermarkets 17.33% Supercentre (as at Sept 30, 2009) 365Y Mao Da Ji Department Store 3.80% Gome El
Slide 14: Metropolis Tower, Beijing
Metropolis Tower, Beijing Metropolis Tower Joint development with ECM Group and HSBC NF China Real Estate Fund 19-storey, 4-basement office tower located in ZhongGuanCun, Haidian District in North West Beijing Completed on schedule in late 2QFY2010 To contribute to the Group‟s topline by 3QF
Slide 15: ECMall, Beijing
ECMall, Beijing ECMall Top 5 Tenants: Located next to Metropolis Tower 6-storey, 4-basement retail mall Name of Trade Sector % of Completed on schedule in late Tenant lettable area 2QFY2010 Golden Jaguar F&B/Food Court 17.92% Soft-opening to continue in phases Contribution to rental income
Slide 16: GIE Tower, Guangzhou
GIE Tower, Guangzhou Top 10 Tenants: Name of Trade Sector % of Tenant lettable area Jin Yu Restaurant F&B 12.68% Ericsson IT Services & 11.89% Tenant Mix by Lettable Area Telecommunication (as at Sept 30, 2009) Guang Dong Bank Banking, Insurance & 6.34% Financial Services Swiss Ya Pei Pharmaceutical
Slide 17: 1 Financial Street, Beijing
1 Financial Street, Beijing Joint development with HSBC NF China Real Estate Fund / Nan Fung Located in the Financial Street Area, Xi Cheng District, Beijing‟s central business district 4-storey podium connecting two office towers and three levels of basement Completed in late 4QFY2009 Imp
Slide 18: Gurney Park, Penang
Gurney Park, Penang Retail component: Gurney Plaza and Hotel component: G Hotel Located along the renowned tourist belt of Gurney Drive Adjacent to the new CBD and less than five minutes away from all major shopping complexes and corporate towers Gurney Plaza Main Gurney Plaza divested in 2007
Slide 19: Retail Operations
x8 DM] METRO RETAIL OPERATIONS
Slide 20: Retail Outlets
Retail Outlets Added a Metro Department Store and an “Accessorize” Specialty Shop in Singapore: Singapore: - Indonesia: - Metro Paragon Metro Pondok Indah Metro Woodlands Metro Senayan Square Metro Sengkang Metro Bandung Supermal Metro City Square – New Outlet Metro Taman Anggrek “Ac
Slide 21: Retail Operations Updates
Retail Operations Updates Singapore: - New Metro City Square soft-opened on schedule in September 2009 New ION Accessorize/Monsoon outlet opened in 2QFY2010 Indonesia: - Trading conditions in Indonesia continues to be competitive and challenging Opening of Metro Gandaria, Jakarta scheduled f
Slide 22: 1HFY2010 Financial Highlights
1HFY2010 FINANCIAL HIGHLIGHTS
Slide 23: Results Highlights
Results Highlights Healthy growth in both top and bottom lines Revenue improves 5.1% to S$69.7 million on the back of revenue growth in both property and retail divisions PBT more than quadruples to S$30.4 million in view of turnaround in fair value of short-term investments Excluding change
Slide 24: Results Highlights: Profit & Loss Accounts
Results Highlights Profit & Loss Accounts: 2QFY09 2QFY10 Change 1HFY09 1HFY10 Change (S$’000) (S$’000) (%) (S$’000) (S$’000) (%) Turnover 33,739 36,236 +7.4 66,325 69,679 +5.1 Profit Before Tax (1,348) 13,166 N.M. 6,357 30,377 +377.8 Profit Before Tax (excluding changes in fair 7,969 13,745 +72.5 19
Slide 25: Revenue Breakdown
Revenue Breakdown 1HFY2010 S$26.4m 37.9% 1HFY2009 S$23.8m 35.9% S$43.2m 62.1% Property Retail S$42.5m 64.1% Property Retail 24
Slide 26: PBT Breakdown
PBT Breakdown 1HFY2010 S$0.7m 2.3% 1HFY2009 S$29.7m 97.7% Property Retail 25
Slide 27: Balance Sheet Highlights
Balance Sheet Highlights As at Mar 31, 2009 As at Sept 30, 2009 Change (%) (S$’000) (S$’000) Property, plant and 11,965 14,418 +20.5 equipment Investment Properties 514,480 610,567 +18.7 Non-current Assets 515,731 372,205 -27.8 Current Assets 271,266 310,016 +14.3 Total Assets 1,313,442 1,307,206 -0
Slide 28: Financial Ratios
Financial Ratios 1HFY2009 1HFY2010 Earnings per share after tax and minority 0.11 1.48 interests (cents) Return on shareholders’ funds (%) 0.08 2.51 Return on total assets (%) 0.05 1.77 Net assets per share (cents) 136.4 146.8 Debt/Equity ratio (times) 0.23 0.24 Net Debt/Equity ratio (times) 0.05 0.
Slide 29: Market Outlook
x8 DM] METRO MARKET OUTLOOK
Slide 30: Shanghai
Shanghai Grade A office market stabilising Return of some leasing demand and edging down of vacancy rate Demand for space mainly from lease renewals Grade A office rents fell in all of the city‟s CBDs in 3Q as landlords continue to make concessions to attract and retain tenants Office rent
Slide 31: Beijing
Beijing Resurgence in Grade A office demand Demand in Grade A sector came mostly from domestic financial institutions Several large-scale leasing transactions concluded during the quarter; mostly closed in brand new office buildings Effective Grade A office rents fall 1.8% in 3Q Uneven sta
Slide 32: Guangzhou
Guangzhou Leasing activity picks up in 3Q09 Domestic companies resumed expansion plans as economic conditions improve Net take-up in 3Q was 11,000 sqm, the majority of which was attributed to expanding local companies 80% of landlords kept rents unchanged in 3Q Cautious market sentiments l
Slide 33: Retail
Retail Singapore: Retail sales continued to decline in July 2009 Sales fell 1.6% month-on-month; 9.8% year-on-year (1) Excluding motor vehicles, retail spending was down 2.2% year-on-year Despite signs pointing to a stronger 2H2009, 2009 sales are unlikely to beat 2008 (2) High rents remai
Slide 34: Growth Strategies
x8 DM] METRO GROWTH STRATEGIES
Slide 35: Growth Strategies
Growth Strategies Continue to prudently Emphasis on: leverage on: - Addition of new retail outlets - Rich Retail Experience - Enhancing Merchandise Offering - Improving Customer Service - Strong Foothold in China Selection Property Retail Development Operations & Investment - Strategic Partnerships
Slide 36: Growth Strategies: Property Development and Investment
Growth Strategies Property Development and Investment Leverage on Rich Retail Experience Optimise tenant mix Continual enhancement of net lettable area Enhance rental yield Capitalise on Strong Foothold in China Opportunistic search for new projects Strategic Partnerships Careful sel
Slide 37: Growth Strategies: Retail Operations
Growth Strategies Retail Operations Addition of new retail outlets New Metro City Square soft-opened on schedule in September 2009 Plans to open more outlets in Singapore when suitable real estate opportunities present themselves New Metro Gandaria, Jakarta targeted to open in 2QFY2011 Enh
Slide 38: Growth Strategies: Retail Operations
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 Adopt New Marketing Platform Adopt new Internet (online) technology, e.g. Facebook, as new media in marketing co
Slide 39: Outlook
x8 DM] METRO OUTLOOK
Slide 40: Outlook: Property Segment
Outlook Property Segment: Overall average occupancy rate of properties at 92.3% (1) Maintained from 1QFY2010‟s AOR of 92.5% Rental income from mature properties in China expected to remain stable Metropolis Tower and ECMall in Beijing completed on schedule and opened in late 2QFY2010 Expec
Slide 41: Outlook: Retail Segment
Outlook Retail Segment: Slowdown in trading environment of retail division stabilising Slowdown due to impact of global economic downturn on Singapore and Indonesian economies Trading environment in Singapore and Indonesia shows indicative stabilising – will continue to monitor With opening
Slide 42: Thank You
THANK YOU November 13, 2009 x8 DAI METRO