Metro Holdings Ltd · SGX:M01
Metro — H1 FY2009 Earnings Presentation
39 slides from Metro's earnings presentation, Nov 14, 2008
Slide 1: SGX Announcement: Presentation of 2nd quarter and half year results
MISCELLANEOUS Page 1 of 1 & 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 respe
Slide 2: 1HFY2009 Results Briefing
METRO HOLDINGS LIMITED 1HFY2009 Results Briefing 14 November 2008
Slide 3: Contents
CONTENTS About Metro Property Development & Investment Retail Operations Corporate Developments Financial Highlights Market Outlook Growth Strategies 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 and Singapore 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 XINJIANG BEIJING • Metro Tower, Shanghai • GIE Tower, Guangzhou • Gurney Park, Penang SHANGHAI List of Investments GUANGZHOU • Shui On
Slide 6: Property Development & Investment
Property Development & Investment
Slide 7: Property Investment – Portfolio Summary
PROPERTY INVESTMENT – Portfolio Summary Completed Properties: % owned by Tenure Site Area Lettable No. of Occupancy Valuation Grp (sqm) Area (sqm) Tenants (1) Rate (%) (1) (S$’m) (100%) (2) Metro City, 36 yr term 60% 15,342 38,452 124 99.3 221 Shanghai from 1993 Metro City, 40 yr term 50% 32,484 84,
Slide 8: Property Investment – Portfolio Summary (Properties under Development)
PROPERTY INVESTMENT – Portfolio Summary Properties under Development: Location % owned Tenure Site Area Potential Expected by Grp (sqm) Lettable Area Completion/Opening (sqm) Gurney Plaza Penang, Extension, 49% Freehold 7,660 12,500 November 2008 Malaysia Penang 1 Financial Beijing, 50 yr term Stree
Slide 9: Property Investment – Occupancy Rates
PROPERTY INVESTMENT Occupancy Rates: 1HFY2008 (%) 1HFY2009 (%) Metro City, Shanghai 97.7 99.3 Metro City, Beijing 80.5 75.3 GIE Tower, Guangzhou 81.3 68.6 Metro Tower, Shanghai 99.2 100.0 8
Slide 10: Metro City, Shanghai
METRO CITY, SHANGHAI Top 10 Tenants: Name of Tenant Trade Sector % of total lettable area Buynow Computer Electronics & IT 19.23% World Physical Fitness & Leisure & Entertainment/ 10.25% Beauty Centre Sport & Fitness Tenant Mix by Lettable Area Kodak Cinema World Leisure & Entertainment/ (as at Sept
Slide 11: Metro Tower, Shanghai
METRO TOWER, SHANGHAI Top 10 Tenants: Name of Trade Sector % of lettable Tenant area Microsoft IT Services & 25.16% Telecommunications Tenant Mix by Lettable Area Exxon Mobil Petroleum & Chemicals 20.69% (as at Sept 30, 2008) Swatch Group Consumer Products 10.23% KFC F&B 8.51% AIA Banking, Insurance
Slide 12: Metro City, Beijing
METRO CITY, BEIJING Top 10 Tenants: Name of Trade Sector % of Tenant lettable area Parkson Department Store Department 29.79% Store Walmart Supermarkets 21.39% Supercentre Tenant Mix by Lettable Area Gome Electronics & IT 3.79% (as at Sept 30, 2008) Electrical Lucky Time F&B/Food Court 2.76% Food Co
Slide 13: 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, 2008) Swiss Ya Pei Pharmaceutical 4.17% Roche Pharmaceutical 4.17% Evergreen Others 3.53% 17.0%
Slide 14: Properties under Development - Updates
PROPERTIES UNDER DEVELOPMENT - UPDATES Gurney Plaza Gurney Plaza Extension – Extension extension of 12,500 square metres Soft opening in mid-November ECMall 2008; occupancy of 90% 3 properties in China: Postponed completion dates to 2009 Delays due to temporary halt in construction and fit-outs in m
Slide 15: Property Investment – Updates
PROPERTY INVESTMENT – UPDATES Shui On Land (“SOL”): US$27 million worth of bonds issued by SOL have been repaid 1.8% stake in SOL Recent fall in share price has impact on the Group’s balance sheet, but does not affect profit & loss statement Group takes a long-term investment view towards SOL stake
Slide 16: Retail Operations
4 Retail 4) Operations
Slide 17: 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 18: Corporate Developments
“| Corporate 4| Developments
Slide 19: Corporate Developments – Rights Issue of Warrants
CORPORATE DEVELOPMENTS Rights Issue of Warrants Proposed renounceable non-underwritten rights issue of 63,077,667 Warrants announced in June 2008 Issue price of S$0.07 for each Warrant One Warrant for every ten existing ordinary shares of Metro Each Warrant with the right to subscribe for one new or
Slide 20: Corporate Developments – Proposed Debt Fund-raising Exercise
CORPORATE DEVELOPMENTS Proposed Debt Fund-raising Exercise Announced in June 2008, in conjunction with the Rights Issue of Warrants Through issue of floating rate notes and/or a transferable loan facility (“Debt Facilities”) Proceeds were to be used to finance new investments of the Group Withdrawal
Slide 21: Financial Highlights
Financial Highlights £4 [DM] METRO
Slide 22: 1HFY2009 Results Highlights
1HFY2009 RESULTS HIGHLIGHTS Property segment continues good organic growth path Higher rental income contributions from Metro City Shanghai and Metro City Beijing, and strengthening Chinese yuan against Singapore dollar, drove up segment revenue Retail sales remain stable Segment revenue improved ye
Slide 23: Financial Highlights
FINANCIAL HIGHLIGHTS Profit & Loss Accounts: 2QFY08 2QFY09 Change 1HFY08 1HFY09 Change (S$’000) (S$’000) (%) (S$’000) (S$’000) (%) Turnover 58,303 46,909 -19.5 113,340 93,601 - 17.4 Turnover* 40,903 46,909 +14.7 85,440 93,601 +9.6 Profit Before 7,505 (1,348) -118.0 25,547 6,357 -75.1 Tax Net Profit
Slide 24: Financial Highlights – Financial Ratios
FINANCIAL HIGHLIGHTS Financial Ratios: 1HFY2008 1HFY2009 Earnings per share after tax and minority 2.93 0.11 interests (cents) Return on shareholders’ funds (%) 2.32 0.08 Return on total assets (%) 1.64 0.05 Net assets per share (cents) 140.9 136.4 Debt/Equity ratio (times) 0.20 0.23 Net Debt/Equity
Slide 25: Turnover by Business Segments
TURNOVER BY BUSINESS SEGMENTS 1HFY2009 S$23.8m 25.5% 1HFY2008 S$20.0m 17.6% S$69.8m 74.5% Property Retail S$93.3m 82.4% Property Retail 24
Slide 26: PBT by Business Segments
PBT BY BUSINESS SEGMENTS 1HFY2009 S$0.9m 1HFY2008 14.9% S$6.2m 24.4% S$5.4m 85.1% S$19.3m Property Retail 75.6% Property Retail 25
Slide 27: Balance Sheet Highlights
BALANCE SHEET HIGHLIGHTS As at Mar 31, 2008 As at Sept 30, 2008 Change (%) (S$’000) (S$’000) Property, plant and 11,874 11,473 -3.4 equipment Investment Properties 498,568 528,668 +6.0 Non-current Assets 417,409 400,829 -4.0 Current Assets 306,073 277,512 -9.3 Total Assets 1,233,924 1,218,482 -1.3 C
Slide 28: Market Outlook
Market Outlook
Slide 29: Market Outlook – Shanghai
MARKET OUTLOOK – SHANGHAI Property market relatively resilient, especially prime locations projects Government supportive policies had limited impact on the market Rental of Grade A offices remains intact 3Q08 average Grade A office rent rate kept flat QoQ at RMB236/sqm/mth (1) Much new supply expec
Slide 30: Market Outlook – Beijing
MARKET OUTLOOK – BEIJING Weakening leasing activity for Grade A office (1) Strong leasing activity in beginning of 2008 has begun to wane 2Q08: Grade A office market’s average rental price yet to see a reversal in upward trend Current average rental price is at RMB 232/sqm/mth 427,172 sqm of leaseab
Slide 31: Market Outlook – Guangzhou
MARKET OUTLOOK – GUANGZHOU Grade A office market entering consolidation stage (1) 2Q 2008: Leasing transactions in Grade A office market decreased significantly after 15 months of growth 2Q 2008: Slight increase in rental due to new supply of high quality office properties Average rent of Grade A of
Slide 32: Market Outlook – Retail
MARKET OUTLOOK – RETAIL Singapore: Retail sales expected to ease with economic slowdown Nominal retail sales went up 4.2% in August YoY, largely due to higher prices (1) Department stores’ takings increased by 13% (2) Total retail sales in August down QoQ to S$2.71 billion, compared to July’s S$2.88
Slide 33: Growth Strategies
Growth Strategies £4 [DM] METRO
Slide 34: Growth Strategies
GROWTH STRATEGIES Property Development & Investment Retail Operations Continue to prudently Emphasis on: leverage on: - Rich Retail Experience - Addition of new retail outlets - Strong Foothold in China - Upgrade of Merchandise Selection - Improve Customer Relationship - Strategic Partnerships Manag
Slide 35: 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 selection of partne
Slide 36: Growth Strategies – Retail Operations
GROWTH STRATEGIES Retail Operations Addition of new retail outlets New outlet at City Square Mall, Singapore, targeted to be opened in third quarter of 2009 Plans to open more outlets in Singapore when suitable real estate opportunities present themselves New outlet at Grandaria City, Jakarta, Indon
Slide 37: Outlook
£4 [DM] METRO
Slide 38: Outlook
OUTLOOK Property Segment: Four completed properties expected to continue generating steady rental income Global economic slowdown expected to impact PRC’s GDP growth rate Knock-on effect on the Group’s real estate operations in the PRC Retail Segment: Slowdown in trading environment of retail divisi
Slide 39: Thank You
£4 [DM] METRO