Slide 1: Half Year Financial Report 1 Jan – 30 Jun 2010
HALF YEAR FINANCIAL REPORT 1 Jan – 30 Jun 2010 12 AUGUST 2010 ANALYST/MEDIA BRIEFING * Artist’s Impression of 368 Thomson
Slide 2: Agenda
AGENDA 1. FINANCIAL HIGHLIGHTS 2. SINGAPORE PROPERTY MARKET 3. OPERATIONS REVIEW 4. MARKET OUTLOOK * The Residences at W Singapore Sentosa Cove
Slide 3: Financial Highlights
FINANCIAL HIGHLIGHTS * Artist’s Impression of Tree House
Slide 4: Summary of Financial Highlights
SUMMARY OF FINANCIAL HIGHLIGHTS Q2 Q2 % 1H 1H % 2010 2009 Change 2010 2009 Change Revenue ($m) 942 787 19.7 1,692 1,410 20.0 Profit Before Tax ($m) 247 198 24.7 438 317 38.2 PATMI ($m) 165 140 17.9 304 223 36.3 Basic Earnings Per Share (cents) 17.4 14.7 18.4 32.7 23.8 37.4 NAV Per Share ($) 6.78 6.1
Slide 5: Revenue for the Quarter Ended June
FINANCIAL HIGHLIGHTS Revenue for the Quarter Ended 30 June 1,000 942 900 775 781 787 800 700 585 602 552 585 600 $ million 500 400 300 200 100 0 2003 2004 2005 2006 2007 2008 2009 2010 2nd Quarter Note : The above financial information is extracted from half-yearly announcements of respective years.
Slide 6: PATMI for the Quarter Ended June
FINANCIAL HIGHLIGHTS PATMI for the Quarter Ended 30 June 194 200 180 165 165 160 140 140 120 $ million 100 80 60 45 37 * 40 23 * 11 20 0 2003 2004 2005 2006 2007 2008 2009 2010 2nd Quarter * Restated Note : The above financial information is extracted from half-yearly announcement of respective year
Slide 7: Revenue for the Period Ended June
FINANCIAL HIGHLIGHTS Revenue for the Period Ended 30 June 1,800 1,692 1,544 1,540 1,600 1,410 1,400 1,179 1,143 1,200 1,063 1,103 $ million 1,000 800 600 400 200 0 2003 2004 2005 2006 2007 2008 2009 2010 Period Note : The above financial information is extracted from half-yearly announcements of res
Slide 8: PATMI for the Period Ended June
FINANCIAL HIGHLIGHTS PATMI for the Period Ended 30 Jun 350 321 330 304 300 250 223 $ million 200 150 86 100 77 * 63 * 49 50 0 2003 2004 2005 2006 2007 2008 2009 2010 Period * Restated Note : The above financial information is extracted from half-yearly announcements of respective years. The Group ad
Slide 9: Revenue by Segment – 1H 2010 vs 1H 2009 & 1H 2008
FINANCIAL HIGHLIGHTS Revenue by Segment – 1H 2010 vs 1H 2009 & 1H 2008 $m 1,000 943 745 754 800 709 1H 2008 542 1H 2009 600 453 1H 2010 400 160 200 119 139 25 20 33 0 Property Hotel Rental Others Development Operations 1H 2010 1H 2009 1H 2008 Property Development 44% 39% 29% Hotel Operations 45% 50%
Slide 10: Profit Before Tax by Segment
FINANCIAL HIGHLIGHTS Profit Before Tax by Segment – 1H 2010 vs 1H 2009 & 1H 2008 $m 350 303 300 1H 2008 250 231 188 1H 2009 200 126 1H 2010 150 113 97 100 67 50 50 50 12 2 0 (3) (50) Property Hotel Rental Others Development Operations 1H 2010 1H 2009 1H 2008 Property Development 53% 59% 63% Hotel Op
Slide 11: Net Borrowings and Net Gearing
FINANCIAL HIGHLIGHTS Net Borrowings CDL Group Total As at 30/06/10 As at 31/12/09 As at 30/06/09 Net Borrowings $2,829m $3,053m $3,350m Interest Cover Ratio 19.5 x 14.5 x 10.1 x CDL’s Net Gearing (%) (2005 – 1H 2010) 60 50 48 48 Net Gearing (%) Note: 40 40 The net gearing ratio does not take into 40
Slide 12: Singapore Property Market
SINGAPORE PROPERTY MARKET * Artist’s Impression of Tree House
Slide 13: Property Price Index – Residential
SINGAPORE PROPERTY MARKET Property Price Index – Residential (2005 – 1H 2010) All Residential 200 Q2 10 184.2 180 160 140 120 100 80 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 05 05 05 05 06 06 06 06 07 07 07 07 08 08 08 08 09 09 09 09 10 10 Source : URA, Q2 2010
Slide 14: New Private Residential Units Launched vs Sold
SINGAPORE PROPERTY MARKET No. of New Private Residential Units Launched vs Units Sold (Projects under Construction) (2005 – 1H 2010) New Units Launched New Units Sold (Projects Under Construction) 14,000 New Units New Units Launched Sold (Uncompleted) 12,000 2005 8,201 7,790 8,306 10,000 2006 11,069
Slide 15: Uncompleted Private Residential Units Available
SINGAPORE PROPERTY MARKET No. of Uncompleted Private Residential Units Available (2005 – 1H 2010) Not Launched Launched & Unsold 20,000 18,266 Launched Not Total & Unsold Launched 16,000 13,937 14,465 2005 2,949 7,328 10,277 Number of Units 2006 2,536 6,944 9,480 12,000 10,277 2007 2,063 7,099 9,162
Slide 16: Property Price Index – Commercial
SINGAPORE PROPERTY MARKET Property Price Index – Commercial (2005 – 1H 2010) 140 Q2 10 120 111.7 100 Q2 10 Index 80 98.0 60 Office 40 Shop 20 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 05 05 05 05 06 06 06 06 07 07 07 07 08 08 08 08 09 09 09 09 10 10 Source : URA, Q2 2010
Slide 17: Average Office Rental in CBD
SINGAPORE PROPERTY MARKET Average Office Rental in CBD (2005 – 1H 2010) 18 Raffles Place $16.00 16 $14.95 14 Non CBD-Core 12 $psf/month $9.85 10 $9.60 $8.60 $7.80 $7.95 8 6 $7.80 $5.70 4 $5.20 2 0 2005 2006 2007 2008 2009 1H 2010 Source : JLL Research, Q2 2010
Slide 18: Average Prime Level Retail Rental
SINGAPORE PROPERTY MARKET Average Prime Level Retail Rental (2005 – 1H 2010) 35 $30.55 $30.80 $29.85 $27.95 $28.05 30 25 $21.65 $21.50 $20.55 $psf/month $21.05 $20.50 20 15 Primary Area 10 (Orchard Road) Suburban Area 5 0 2005 2006 2007 2008 2009 1H 2010 Source : JLL Research, Q2 2010
Slide 19: Operations Review
OPERATIONS REVIEW * Artist’s Impression of The Residences at W Singapore Sentosa Cove
Slide 20: Property Development
PROPERTY DEVELOPMENT * Artist’s Impression of 368 Thomson
Slide 21: Units Booked / Sold
PROPERTY DEVELOPMENT Units Booked / Sold Sales Value* No. of Total $’000 Units* Floor Area (sq ft) 1H 2010 $ 947,710 773 951,526 (to date, 9 Aug 10) $ 1,204,547 934 1,137,342 1H 2009 $ 664,796 537 799,676 * Includes share of JV partners
Slide 22: Planned Residential Project Launches for 2H 2010
OPERATIONS REVIEW Planned Residential Project Launches for 2H 2010 (subject to market conditions) Expected Projects Units Launch NV Residences (Total 642) 300 Q3 2010 - Pasir Ris Parcel 2 Copthorne Orchid (Total 150) 100 Q3 2010 Total 400
Slide 23: Land Bank by Sector
OPERATIONS REVIEW Land Bank by Sector (as at 30 Jun 2010) Type of Development Land Area (sq ft) % Residential (Local & Overseas) 2,369,610 74 Commercial / Hotel 368,877 12 Industrial 462,818 14 TOTAL 3,201,305 100 Residential (Overseas) 10% Industrial 14% Residential (Local) 64% Commercial/ Hotel 12
Slide 24: Rental Revenue by Sector
OPERATIONS REVIEW Rental Revenue by Sector 180 $160m 160 $139m Rental Revenue ($m) 140 120 98 Office 100 95 Retail 80 Industrial 60 Others * 40 36 21 20 6 6 17 20 0 1H 2009 1H 2010 * Including car park, serviced apartment and residential
Slide 25: Hotel Operations
HOTEL OPERATIONS * Studio M Hotel Singapore
Slide 26: Hotel Revenue by Region
FINANCIAL HIGHLIGHTS Hotel Revenue by Region 1H 2010 1H 2009 39% 35% 298 New Zealand 249 Europe 6% 7% 52 43 United States Asia 220 186 218 197 25% 29% 28% 31% $754m $709m Overall change = 6%
Slide 27: Hotel Occupancy by Region
FINANCIAL HIGHLIGHTS Hotel Occupancy by Region 80 76.3 73.7 73.4 Hotel Occupancy Rate (%) 70 68.1 66.7 63.0 1H 2009 62.0 1H 2010 59.8 60 50 Asia United States Europe New Zealand
Slide 28: Hotel RevPAR at Constant Currency
FINANCIAL HIGHLIGHTS Hotel Revenue Per Available Room at Constant Currency 170 143 136 137 140 Hotel RevPAR ($) 117 117 109 110 1H 2009* 1H 2010 80 76 71 50 Asia United States Europe New Zealand * For comparability, 1H 2009 RevPAR has been translated at constant exchange rates (30 June 2010).
Slide 29: Market Outlook
MARKET OUTLOOK * The Residences at W Singapore Sentosa Cove
Slide 30: Singapore Economic Outlook
MARKET OUTLOOK Singapore Economic Outlook • GDP grew by 24.0% for Q2 2010 on a seasonally adjusted quarter- on-quarter annualised basis • The Singapore economy expanded by 17.9% year-on-year for 1H 2010 • The Government’s 2010 growth forecast for the Singapore economy is maintained at 13.0% to 15.0%
Slide 31: Property Market – Residential
MARKET OUTLOOK Property Market – Residential • The mass market and mid-tier segments led the sales momentum in the private residential market in Q2 2010 • In 1H 2010, total primary sales of 8,413 units was recorded – accounting for more than half of the total 14,688 units achieved in FY2009 • Privat
Slide 32: Property Market – Office
MARKET OUTLOOK Property Market – Office • Office rentals showed a healthy rebound in Q2 2010, with an increase of 1.1% in overall rentals, compared with a 0.4% increment in Q1 2010 • Occupancy rates tightened across all micro-markets, in spite of the addition of over 1.5 million sq ft of Grade A off
Slide 33: Hotels
MARKET OUTLOOK Hotels • Overall, demand has been strong in most of M&C’s markets • Although global RevPAR figures for July 2010 have been strong across M&C’s hotels, M&C remains mindful of the considerable macro- economic uncertainty over the next 12 to 18 months, especially in Europe and the US • A
Slide 34: Overseas Expansion
MARKET OUTLOOK Overseas Expansion • The Group has strategically and selectively made some investments in overseas projects • With China Government’s implementation measures to control its over- heated property market, the Group believes that the time may soon be ripe to pick up valuable land bank an
Slide 35: CDL China Limited – Mission Statement
CDL CHINA LIMITED Mission Statement • To make City Developments Limited (“CDL”) a household name in China that is synonymous with successful real estate developments and investments, backed by over 45 years of real estate experience, including pioneering green buildings and in-house professional pro
Slide 36: CDL's Competitive Advantage
CDL CHINA LIMITED CDL’s Competitive Advantage • Strong brand name in Singapore over 45 years - Provides a solid track record that helps to establish credentials in China - Capitalise on the local governments’ keen interest to attract sizable international developers • Renowned for good quality devel
Slide 37: CDL China Limited – Investment Funds and Philosophy
CDL CHINA LIMITED • Investment Funds - S$300 million as initial capital • Investment Philosophy - Market Timing - Location - Quality & Functionality - Earnings & Returns • Short to long term investment horizon - Residential developments for quick monetisation - Commercial developments (Office / Reta
Slide 38: Existing Asset – Tianjin City Tower
CDL CHINA LIMITED Existing Asset – Tianjin City Tower • 36-storey office building • Purchased in turnkey deal with local Chinese developer in 2007 • Building completed in Q4 2009 • Important tenants: - Government Offices Administration of Tianjin - Tianjin Economic & Information Technology Committee
Slide 39: China Fundamentals
CDL CHINA LIMITED China Fundamentals Income Income Growth Growth Solid Solid Urbanisation Urbanisation Modernisation Modernisation Fundamentals Fundamentals Productivity Productivity (i) In light of strong fundamentals and the current market correction, conditions are ripe for new market entrants to
Slide 40: Benefits to CDL
CDL CHINA LIMITED Benefits to CDL • Establishing a strong presence in China, the world’s fastest-growing major economy • Exciting story for shareholders and investors as CDL China Limited grows • Capitalise on Hong Leong Group’s (inclusive of CDL’s) core experience and expertise in property developm
Slide 41: 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
Slide 42: Thank You
THANK YOU * Artist’s Impression of Hundred Trees