Metro Holdings Ltd · SGX:M01
Metro — H1 FY2012 Earnings Presentation
45 slides from Metro's earnings presentation, Nov 16, 2011
Slide 1: SGX announcement: 1HFY2012 Results Presentation
Print this page Miscellaneous * 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 METRO HOLDINGS LIMITED respect to * Announcement is submitte
Slide 2: 1HFY2012 Results Presentation
METRO HOLDINGS LIMITED 1HFY2012 RESULTS PRESENTATION November 16, 2011
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 :HDUH« 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 (Sale in progress in FY2012) ECMall, Beijing Metro City, Shanghai Metro Tower, Shanghai BEIJING GIE Tower, Guangzhou Frontier Koishikawa Building, Tokyo TOKYO SHANGHAI List of Investments (HK Listed) GUANGZHOU Shui On Land
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 Group(1) ³sqm´ Area Tenants (1) Rate (%) (1) (6¶P) ³sqm´ (100%) Metro City, 36 yr term 60% 15,342 39,422 109 98.5 241 (2) Shanghai from 1993 Metro City, 40 yr term 50% 32,484 116,846 1
Slide 8: Portfolio Overview
Portfolio Overview Completed Investment Properties under Associated Companies: % owned by the Site Area Lettable Area Occupancy Rate Tenure Group (1) ³sqm´ ³sqm´ (%) (1) Tesco Lifespace, 40 yr term 10.7% 31,808 30,255 93.3 QinHuangDao from 2005 Tesco Lifespace, Fushun (2) 40 yr term 10.7% 18,800 32,
Slide 9: Portfolio Overview
Portfolio Overview Investment Properties Under Development by Associated Companies: % owned by Group(1) Lettable Area Scheduled Preleased TA Location Tenure (sqm) (2) Opening signed Tesco Lifespace, Xiamen, 40 yr term December 10.7% 29,256 51.5% PRC from 2005 2011 Xiamen Tesco Lifespace, Shenyang, 4
Slide 10: Occupancy Rate
Occupancy Rate 1HFY2012 (%) 1HFY2011 (%) Metro City, Shanghai 98.5 98.3 Metro City, Beijing 74.5 74.6 GIE Tower, Guangzhou 96.1 92.7 Metro Tower, Shanghai 97.9 76.1 ECMall, Beijing 99.1 83.6 Frontier Koishikawa Building, Tokyo(1) 73.2 73.2 Metro City, (1) Acquired in early 1QFY2011 Beijing 9
Slide 11: Metro City, Shanghai
Metro City, Shanghai Top 10 Tenants: Total: 98.5% Name of Trade Sector % of total Tenant lettable area Buynow Computer Electronics & IT 19.73% Retail Tenant Mix by Lettable Area World (as at 30 September 2011) Physical Fitness & Beauty Centre Leisure & Entertainment/ Sport & Fitness 10.23% Kodak Cin
Slide 12: Metro Tower, Shanghai
Metro Tower, Shanghai Top 10 Tenants: Total: 97.9% Name of Trade Sector % of total Tenant lettable area Office Tenant Mix by Lettable Area Exxon Mobil Petroleum & Chemicals 20.57% (as at 30 September 2011) Swatch Group Consumer Products 16.22% Energy Source IT services and 10.58% Telecommunications
Slide 13: Metro City, Beijing
Metro City, Beijing Total: 74.5% Top 10 Tenants: Name of Tenant Trade Sector % of Retail Tenant Mix by Lettable Area lettable area (as at 30 September 2011) Hong Xing Home Furnishings 30.16% Parkson Department Store Department Store 21.52% Walmart Supercentre Supermarkets 15.45% 3.8% 0.5% 15.4% Gome
Slide 14: GIE Tower, Guangzhou
GIE Tower, Guangzhou Total: 96.1% Top 10 Tenants: Name of Trade Sector % of Tenant lettable Office Tenant Mix by Lettable Area area (as at 30 September 2011) Jin Yu Restaurant F&B 12.68% Ericsson IT Services & 11.89% Telecommunication 16.5% Guang Dong Banking, Insurance & 15.9% Development Financial
Slide 15: ECMall, Beijing
ECMall, Beijing Top 10 Tenants: Total: 99.1% Name of Trade Sector % of Tenant lettable area Retail Tenant Mix by Lettable Area Golden Jaguar F&B/Food Court 17.95% (as at 30 September 2011) C&A Fashion & Shoes 5.35% Only/Vero/Moda/ Fashion & Shoes Jack&Jones/ 4.43% 2.2% Selected 5.4% H&M Fashion & Sh
Slide 16: Frontier Koishikawa Building, Tokyo
Frontier Koishikawa Building, Tokyo Total: 73.2% Top 10 Tenants: Office Tenant Mix by Lettable Area Name of Tenant Trade Sector % of (as at 30 September 2011) lettable area Shisyutsuhutan-koi Government 7.3% Tanto-kan Somu- Office 13.7% sho Daijin-kanbo 26.81% Kaikei-ka Kikaku- kan Lion F&B 14.58% 3
Slide 17: Tesco Projects, China
Tesco 1 Projects, China Ownership Split: Metro Holdings ± 10.7%, Tesco Plc ± 50.0%, InfraRed NF (FKA HSBC NF) / Nan Fung ± 32.2%, Private Bankers ± 7.1% Joint investment with Tesco Plc, InfraRed NF China Real Estate Fund (FKA HSBC NF China Real Estate Fund) / Nan Fung and HSBC private banking cl
Slide 18: Tesco Projects, China
Tesco 2 Projects, China Ownership Split: Metro Holdings ± 10.7%, Tesco Plc ± 50.0%, InfraRed NF (FKA HSBC NF) ± 39.3% Joint investment with Tesco Plc and InfraRed NF China Real Estate Fund (FKA HSBC NF China Real Estate Fund) in Feb 2011 Fuzhou Xiamen Shenyang 4-storey & 2-basement 3-storey
Slide 19: Retail Operations
Retail Operations
Slide 20: 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 Plaza Senayan Metro Sengkang Metro Ba
Slide 21: Financial Highlights
Financial Highlights
Slide 22: 1H2012 Results Highlights
1H2012 Results Highlights Property division turnover improves; profit affected by mark-to-market losses Growth in rental income offset by a 5% decline in value of the RMB against the SGD; Mitigated by higher rental income from higher occupancy at Metro Tower Shanghai and EC Mall Lower profit
Slide 23: Half Year Financial Summary
Half Year Financial Summary Profit & Loss Accounts: 2QFY12 2QFY11 Change 1HFY2012 1HFY2011 Change 6¶ 6¶ (%) 6¶ 6¶ (%) Turnover 44,645 43,372 +2.9 87,249 82,567 +5.7 Profit Before Tax 1,105 58,591 -98.1 7,499 67,786 -88.9 Net (Loss)/Profit After Tax (379) 51,910 n.m. 2,649 58,840 -95.5 and Minority I
Slide 24: Half Year Financial Summary
Half Year Financial Summary Financial Ratios: 1HFY2012 1HFY2011 Earnings per share after tax and minority 0.41 9.29 interests (cents) 5HWXUQRQVKDUHKROGHUV¶IXQGV 0.26 6.1 Return on total assets (%) 0.18 4.23 Number of issued shares (million) 828.6 (1) 641.0 Net asset value per share (cents) 120.4 (1)
Slide 25: 2Q Revenue Breakdown
2Q Revenue Breakdown 60.0 6¶P 50.0 40.0 30.0 26.8 28.1 20.0 16.5 16.5 10.0 0.0 2QFY2011 2QFY2012 Property Revenue Retail Revenue Property revenue remains steady in 2Q2012 Higher occupancy at Metro Tower, Shanghai, offset by a 5% decline in the value of the Renminbi against the Singapore dollar
Slide 26: Half Year Revenue Breakdown
Half Year Revenue Breakdown 6¶P 100 80 51.8 54.8 60 40 30.8 32.5 20 0 1HFY2011 1HFY2012 Property Revenue Retail Revenue Property revenue rose 5.5% y-o-y All five properties in Shanghai, Beijing and Guangzhou continue to enjoy high occupancies averaging 93.2% Comparatively higher occupancy rates
Slide 27: Balance Sheet Highlights
Balance Sheet Highlights As at Sep 30, 2011 As at March 31, 2011 Change 6¶ 6¶ (%) Property, plant and 16,895 16,223 +4.1 equipment Investment Properties 562,488 688,452 -18.3 Other Non-current Assets 144,550 197,202 -26.7 Assets of disposal entity 172,700 - N.M. classified as held for sale Current A
Slide 28: Market Outlook
Market Outlook
Slide 29: Market Outlook: China
Market Outlook: China Long-ƚĞƌŵŐƌŽǁƚŚŽĨŚŝŶĂ͛ƐĐŽŵŵĞƌĐŝĂůƌĞĂůĞƐƚĂƚĞŵĂƌŬĞƚǁŝůůĐŽŶƚŝŶƵĞ Despite the increasingly uncertain global outlook, we continue to expect robust growth in China for the remainder of this year. Firm domestic demand is being supported by sustained wage growth, which should mean gro
Slide 30: Market Outlook: China
Market Outlook: China Moderated growth but still the main source of optimism in the global economy China's gross domestic product grew at an annual pace of 9.1% during the third quarter, down from 9.5% growth in the second quarter ʹ compares with just 1.3% growth in the United States and 0.2% growt
Slide 31: Market Outlook: Shanghai, Office
Market Outlook: Shanghai, Office Office rents continue to surge - DTZ Research, Shanghai Q3 2011, 14 October 2011 ^ŚĂŶŐŚĂŝ͛ƐŽĨĨŝĐĞƌĞŶƚĂůĐŽŶƚŝŶƵĞĚŝƚƐƵƉǁĂƌĚƚƌĞŶĚǁŝƚŚƚŚĞĂǀĞƌĂŐĞŐƌĂĚĞŽĨĨŝĐĞƚƌĂŶƐĂĐƚĞĚƌĞŶƚĂůƌĞĂĐŚŝŶŐ RMB 8.35 (US$1.30) per sq m per day at the end of Q3 2011. The city-wide availability rat
Slide 32: Market Outlook: Shanghai, Retail
Market Outlook: Shanghai, Retail Rental in retail hubs continue its upward trend - DTZ Research, Shanghai Q3 2011, 14 October 2011 Absence of new high-ĞŶĚƌĞƚĂŝůƐƵƉƉůLJŝŶϮϬϭϭĐŽŶƚŝŶƵĞĚƚŽŝŵƉĂĐƚd͛ƐĨŝǀĞƐĞůĞĐƚĞĚƌĞƚĂŝůŚƵďƐ;Lujiazui, Nanjing East Rd, Huaihai Middle Rd, Nanjing West Rd, Xujiahui) with the
Slide 33: Market Outlook: Beijing, Retail
Market Outlook: Beijing, Retail Strong retail sales growth stimulating retailer demand - DTZ Research, Beijing Q3 2011, 14 October 2011 - CB Richard Ellis, Asia Pacific Prime Retail, Q2 2011 From Jan to Aug 2011, total sales of consumer goods in Beijing amounted to RMB437.5 billion (US$68.4 billio
Slide 34: Market Outlook: Guangzhou, Office
Market Outlook: Guangzhou, Office Active market with growing demand - DTZ Research, Guangzhou Q3 2011, 14 October 2011 ƵĞƚŽŝƚƐƐƚƌŽŶŐĞĐŽŶŽŵŝĐďĂƐĞĂŶĚŐƌŽǁŝŶŐĨŽƌĞŝŐŶŝŶǀĞƐƚŵĞŶƚĚĞŵĂŶĚ͕'ƵĂŶŐnjŚŽƵ͛ƐŐƌĂĚĞŽĨĨŝĐĞ market experienced a steady improvement in leasing transactions in Q3. Market remained active w
Slide 35: Market Outlook: Retail, Singapore
Market Outlook: Retail, Singapore Singapore: Locals, tourists likely to boost retail sales(1) ¾ Visitor arrivals for the first eights months of the year totalled 8.8 million, up 16% from last year ¾ ZĞƚĂŝůƐƵƉƉůLJŚĂƐŝŶĐƌĞĂƐĞĚĂƚĂĐŽŵƉŽƵŶĚŝŶŐƌĂƚĞŽĨϬ͘ϵйŽǀĞƌƚŚĞůĂƐƚϭϬLJĞĂƌƐǀƐ͘^ŝŶŐĂƉŽƌĞ͛Ɛ population increas
Slide 36: Market Outlook: Retail, Indonesia
Market Outlook: Retail, Indonesia Indonesia: ŽƵŶƚƌLJ͛ƐƌĞƚĂŝůƐĂůĞƐǁŝůůŐƌŽǁĨƌŽŵh^Ψϭϯϯ͘ϴϵďŶ;/Zϭ͘ϯϵƚƌŶͿŝŶϮϬϭϭƚŽh^ΨϮϮϮ͘ϰϭďŶ;/ZϮ͘ϯϬƚƌŶͿďLJ 2015(1) ¾ ^ƚƌŽŶŐƵŶĚĞƌůLJŝŶŐĞĐŽŶŽŵŝĐŐƌŽǁƚŚ͖/ŶĚŽŶĞƐŝĂ͛ƐŶŽŵŝŶĂů'WŝƐĨŽƌĞĐĂƐƚƚŽďĞh^Ψϴϭϵ͘ϲďŶŝŶϮϬϭϭ ¾ tŽƌůĚ͛ƐĨŽƵƌƚŚůĂƌŐĞƐƚƉŽƉƵůĂƚŝŽŶǁŝƚŚƌŝƐŝŶŐƉĞƌ-capita incomes ¾ Continued de
Slide 37: Growth Strategies
Growth Strategies
Slide 38: Growth Strategies
Growth Strategies Property Development Retail Operations & Investment Continue to prudently Emphasis on: leverage on: - Addition of new specialties shops - Rich Retail Experience - Enhancing Merchandise Offering - Strong Foothold and - Improving Customer Service Know-how in China - Implement mobile
Slide 39: Growth Strategies
Growth Strategies Property Development and Investment Leverage on Rich Retail Experience ¾ Optimise tenant mix ¾ Continual enhancement of lettable space ¾ Improve efficiency of mall management Capitalise on Strong Foothold in the Asia-Pacific region ¾ Opportunistic search for new projects ¾ Main
Slide 40: Growth Strategies
Growth Strategies Retail Operations Addition of new retail outlets ¾ Plans to open more outlets in Singapore when suitable real estate opportunities present themselves ¾ Opening additional Monsoon Accessorize outlets Enhance Merchandise Offering ¾ Leverage on strong relationships with local and
Slide 41: Growth Strategies
Growth Strategies Retail Operations Upgrade Customer Relationship Management (CRM) System ¾ Engage expertise in CRM to leverage on available customer data base in current CRM system Adopt New Marketing Platform ¾ Adopt new Internet (online) technology, with objective to engage and activate custo
Slide 42: Outlook
Outlook
Slide 43: Outlook
Outlook Property Segment: Rental LQFRPHIURP*URXS¶VIRXUPDWXUHSURSHUWLHVH[SHFWHGWR remain stable ¾ The divestment of Metro City Beijing is expected to be completed in the current financial year, subject to certain conditions Selective positioning, new investments in property development and strate
Slide 44: Outlook
Outlook Retail Segment: Challenging retail market outlook ¾ Retail trade remains highly competitive ¾ Overall market condition is volatile due to European debt crisis and weak US economy affecting consumer sentiments Continued improvement in contribution from Monsoon Accessorize with new Accesso
Slide 45: Thank You
Thank You