City Developments Limited · SGX:C09

City Developments — Q1 2018 Earnings Presentation

47 slides from City Developments's earnings presentation, May 11, 2018

1. Slide 1: Q1 2018 Results Presentation

   Q1 2018 Results Presentation 11 May 2018

2. Slide 2: Agenda

   Agenda  General Overview  Financial Highlights  Singapore Operations  International Operations  Hospitality  Innovation

3. Slide 3: General Overview

   General Overview

4. Slide 4: Key Highlights

   Key Highlights Stellar Performance by Singapore Property Development Segment  Robust residential sales: Sold 459 units with total sales value of $792.6 million* in Q1 2018  66% increase in total sales value year-on-year (Q1 2017: $477.1 million)  Two successful launches in Q1 2018 with robust tak

5. Slide 5: Key Financial Highlights – Q1 2018

   Key Financial Highlights – Q1 2018 Revenue EBITDA PATMI Basic EPS $1,057.8 million $241.5 million $80.0 million 8.8 cents 35.0% 23.0% 16.3% 16.2% Q1 2017 (Restated) *: $783.7 million $196.3 million $95.6 million 10.5 cents NAV per share  Revenue increased significantly mainly due to full recognitio

6. Slide 6: Diversified Global Portfolio

   Diversified Global Portfolio Deepening Presence in Key Markets  Geographical diversification allows flexibility to capitalise on opportunities Others Others Singapore 17% 19% 62% Singapore US 51% 9% US Total Revenue Total Assets 8% by Geography by Geography China 5% China UK 10% 7% UK 12% Q1 2018 6

7. Slide 7: Singapore Property Development

   Singapore Property Development Residential Projects Available for Launch – Pipeline of over 3,000 units 4 new site acquisitions since Oct 2017, together with unlaunched projects, have increased pipeline to over 3,000 units West Coast Vale - $472.4 million Sumang Walk - $509.37 million* GLS site Exec

8. Slide 8: Diversified Land Bank

   Diversified Land Bank Land Area (as of 31 Mar 2018) – CDL’s Attributable Share Type of Development Land Area (sq ft) Singapore International Total % Residential 1,028,489 1,817,032 2,845,521 93 Commercial / Hotel 20,886 187,862 208,748 7 Total 1,049,375 2,004,894 3,054,269 100 Total Proposed GFA – 6

9. Slide 9: Financial Highlights

   Financial Highlights

10. Slide 10: Revenue by Segment for Q1 (2016 – 2018)

    Financial Highlights Revenue by Segment for Q1 (2016 – 2018) 800 $1,058m $784m $723m 700 600 563 500 $ million 378 367 360 400 299 300 223 200 84 85 93 100 33 33 47 0 Q1 2018 Q1 2017 Q1 2016 Property Development Hotel Operations Rental Properties Others Q1 2018 Q1 2017 Q1 2016 Property Development 5

11. Slide 11: Profit Before Tax by Segment for Q1 (2016 – 2018)

    Financial Highlights Profit Before Tax by Segment for Q1 (2016 – 2018) 140 $167m $125m $138m 120 100 92 81 77 80 $ million 61 60 41 40 28 21 20 11 9 4 5 - 0 Q1 2018 Q1 2017 (Restated) * Q1 2016 Property Development Hotel Operations Rental Properties Others Q1 2018 Q1 2017 Q1 2016 (Restated) * Proper

12. Slide 12: EBITDA by Segment for Q1 (2016 – 2018)

    Financial Highlights EBITDA by Segment for Q1 (2016 – 2018) 140 $242m $196m $205m 120 101 100 90 90 77 80 68 $ million 55 55 60 44 41 40 16 20 7 0 (1) (20) Q1 2018 Q1 2017 (Restated) * Q1 2016 Property Development Hotel Operations Rental Properties Others Q1 2018 Q1 2017 Q1 2016 (Restated) * Propert

13. Slide 13: Capital Management

    Financial Highlights Capital Management As at 31/03/18 As at 31/12/17 Gross borrowings $4,837m $5,036m Cash and bank balances (include restricted deposits of $214m classified in other non-current $3,621m $3,989m assets) Net borrowings $1,216m $1,047m Net gearing ratio without taking in fair value ga

14. Slide 14: Prudent Capital Management

    Financial Highlights Prudent Capital Management Debt Expiry Profile Debt Maturity Within 1 year 2,000 21% Bond Bank Loan Debt $ million 30% 1 to 2 years 1,500 429 2 to 3 years 1,000 20% 220 246 More than 3 381 years 500 1,048 29% 670 694 409 540 100 0 100 2018 2019 2020 2021 2022 2023 onwards Debt C

15. Slide 15: Singapore Operations – Project Development

    Singapore Operations Project Development

16. Slide 16: Singapore Property Market

    Singapore Property Market Property Price Index – Residential (2013 – 2018) All Residential Beginning of 180 Residential Market Recovery 160 Q1 18 144.1 140 120 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 13 13 13 13 14 14 14 14 15 15 15 15 16 16 16 16 17 17 17 17 18 Source : URA,

17. Slide 17: Residential Units Sold by CDL

    Singapore Property Development Residential Units Sold by CDL Q1 2018 Q1 2017 459 $792,561 415,892 Sales Value 293 319,762 66% yoy $477,096 Units Sold 57% yoy No. of Units* Sales Value* Total Floor Area* (#039;000) (sq ft) * Includes share of JV partners 17

18. Slide 18: New Futura – Strong Response to Private Preview

    Singapore Property Development New Futura – Strong Response to Private Preview Location Tenure Equity Total Total Units % Total Saleable Stake Units Sold* Sold* Area (sq ft) Leonie Hill Road Freehold 100% 124 62 50 248,199 Private Preview commenced on 18 Jan 2018:  To date, 62 units sold – includin

19. Slide 19: The Tapestry – units sold over Launch Weekend

    Singapore Property Development The Tapestry – 315 units sold over Launch Weekend Location Tenure Equity Total Total Units % Total Saleable Stake Units Sold* Sold* Area (sq ft) 99-year Tampines Ave 10 100% 861 400 46 652,950 leasehold Commenced Sales on 24 Mar 2018:  To date, 400 units (80%) out of

20. Slide 20: Inventory of Launched Residential Projects

    Singapore Property Development Inventory of Launched Residential Projects – As of 31 Mar 2018 CDL’s Share of % Total Unsold Project Equity Stake Total Units Units Sold Unsold Sold Inventory Inventory St. Regis Residences 33% 173 161 93% 12 4.0 The Oceanfront @ Sentosa Cove 50% 264 263 99% 1 0.5 One

21. Slide 21: Strong Launch Pipeline of over 3,000 units

    Singapore Property Development Strong Launch Pipeline of over 3,000 units^ Project / Site Tenure Equity Total Units Total Saleable Area Expected Stake (sq ft) Launch The Tapestry 99-year leasehold 100% 861 652,950 Mar 2018 (500 units released) South Beach Residences 99-year leasehold 50.1% 190 Est 3

22. Slide 22: Singapore Operations – Asset Management

    Singapore Operations Asset Management

23. Slide 23: Property Price Index – Commercial

    Singapore Commercial Market Property Price Index – Commercial (2013 – Q1 2018) 150 Office Retail Q1 18 140 133.1 130 Q1 18 120 111.9 110 100 90 80 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 13 13 13 13 14 14 14 14 15 15 15 15 16 16 16 16 17 17 17 17 18 Source : URA, Q1 2018 23

24. Slide 24: Property Rental Index – Commercial

    Singapore Commercial Market Property Rental Index – Commercial (2013 – Q1 2018) 250 Office Retail 200 Q1 18 167.6 150 Q1 18 100 99.3 50 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 13 13 13 13 14 14 14 14 15 15 15 15 16 16 16 16 17 17 17 17 18 Source : URA, Q1 2018 24

25. Slide 25: Rental Properties Occupancy & Lease Expiry Profile

    Rental Properties Occupancy & Lease Expiry Profile (2018 – 2020) As of 31 Mar 2018 Office Retail Portfolio Portfolio 16 properties 19 properties NLA: 2.3 million sq ft NLA: 844,000 sq ft 92.7% 97.0% Occupancy* Occupancy^ REPUBLIC PLAZA CITY SQUARE MALL % of NLA % of NLA Expiring Expiring 37.1% 34.7%

26. Slide 26: Asset Enhancement Initiatives (AEI)

    Asset Enhancement Initiatives (AEI) AEI Works On-Track Republic Plaza – $70 million AEI  Phased AEI works to commence in April 2018  Expected completion by 2H 2019  Includes creation of new retail cluster at Level 2  Total NLA (Post AEI): 785,000 sq ft Artist’s Impression Republic Plaza – Revamp

27. Slide 27: International Operations

    International Operations

28. Slide 28: International Operations – China

    International Operations – China Focus on Tier 1 and Tier 2 Cities Suzhou (苏州) Continued Strong Chongqing (重庆) Sales: Strategic Total sales of RMB Partnership 3.58 billion generated with China for 84% of 1,804 units Vanke for to date*^ Chongqing  Phase 1 – 89% sold projects with sales value of RMB

29. Slide 29: China – Suzhou Mixed-use Waterfront Project

    International Property Development China – Good Progress for Suzhou Mixed-use Waterfront Project Hong Leong City Center (丰隆城市中心) Equity Total Total Units % Tenure Expected Completion Stake Units Sold* Sold 70 years 100% 1,804 1,507^ 84 Completed (Phase 1) (Residential) / 2018 (Phase 2)~ 40 years (Co

30. Slide 30: China – Chongqing JV Projects

    International Rental Properties China – Chongqing JV Projects Huang Huayuan (黄花园) and Eling Residences (鹅岭峰) Project Tenure Equity Total Expected Stake Units Completion Huang Huayuan 30% >700 2020 50-year- Completed Eling Residences 50% 126 (To be rebranded as lease Eling Palace)  Strategic partner

31. Slide 31: International Operations – UK

    International Operations – UK Established Strong Project Pipeline in Greater London Under Construction Projects to be Completed in 2018 & 2019 Artist’s Impression Under Chelsea Knightsbridge Belgravia Construction Expected completion in Q1 2020 Good Progress on Planning Applications Artist’s Impress

32. Slide 32: UK – Upcoming Main Launch

    International Property Development UK – Upcoming Main Launch Teddington Riverside, Teddington TW11 Tenure Equity Total Est. Total Saleable Expected Stake Units Area (sq ft) Completion Freehold 100% 240 233,552 Q1 2020  Soft-launched in Oct 2017 with opening of on-site sales centre  Expected comple

33. Slide 33: International Operations – Japan

    International Operations – Japan Two Prime Freehold Residential Projects in Tokyo Park Court Aoyama The Tower Completed in Q1 2018:  160-unit freehold JV residential project launched in Oct 2016 Freehold site in Shirokane  To date, over 80% of the units have been sold*  Units are progressively be

34. Slide 34: International Operations – Australia

    International Operations – Australia Focus on Increasing Exposure in Australia Brisbane Sydney Luxury Retirement Housing Projects: Collaboration with Waterbrook Lifestyle Resorts on 2 Freehold Luxury Retirement Housing Projects in Sydney & NSW for A$57 million  Developments offer a high-end hospita

35. Slide 35: Residential Projects Launched To Date

    International Property Development Residential Projects Launched To Date* Project City Equity Total Total % Sold/ Est. Total Expected Stake Units Units Sold Booked Saleable Completion / Booked Area (sq ft) Australia Ivy and Eve Brisbane 33%# 476 463 97 348,678 Completed China Hong Leong City Center

36. Slide 36: Unlaunched Residential Projects

    International Property Development Unlaunched Residential Projects Project City Tenure Equity Total Est. Total Saleable Area / Expected Stake Units GFA^ / Site Area+ (sq ft) Completion China Huang Huayuan Chongqing 50-year lease 30% >700 1,041,589 2020 UK Belgravia London Freehold 100% 6 12,375 Q2 2

37. Slide 37: Hospitality

    Hospitality

38. Slide 38: M&C Hotel Operations – Trading Performance

    M&C Hotel Operations Trading Performance Reported Constant Currency Currency Q1 2018 Q1 2017 Change Q1 2017 Change Revenue £217m £223m (2.7%) £210m 3.3% Revenue (hotel) £187m £191m (2.1%) £180m 3.9% Profit before tax £26m £13m 100.0% £13m 100.0% PATMI £8m £3m 166.7%  Lower reported revenues due to

39. Slide 39: M&C Hotel Operations – RevPAR Trading Performance

    M&C Hotel Operations Trading Performance  RevPAR in reported currency fell by 3.1% but in constant currency was up by 3.2% for Q1 2018 as compared to the same period last year: Q1 2018 Reported Currency Constant Currency New York £106.22 ↓ 4.4% ↑ 7.1% Regional US £45.79 ↓ 8.9% ↑ 2.1% Total US £65.6

40. Slide 40: Latest Acquisition – Iconic 42-room in New Zealand

    M&C Hotel Operations Latest Acquisition – Iconic 42-room in New Zealand The Waterfront Hotel in New Plymouth, rebranded as Millennium New Plymouth  Acquired on 1 Feb 2018  Purchase consideration of NZ$11 million 40

41. Slide 41: Asset Enhancement

    M&C Hotel Operations Asset Enhancement Millennium Hotel London Knightsbridge  Refurbishment plans are under review The Group also plans to spend about US$80m to upgrade its Millennium Hotel London Mayfair New York properties over the  Started refurbishment in Nov 2017  Completion of guest rooms r

42. Slide 42: Hotel Room Count and Pipeline

    M&C Hotel Operations Hotel Room Count and Pipeline Hotels Rooms 31 Mar 31 Dec 31 Mar 31 Dec Hotel and Room Count 2018 2017 2018 2017 By region: ● New York 4 4 2,238 2,238 ● Regional US 15 15 4,559 4,559 ● London 8 8 2,644 2,649 ● Rest of Europe 21 21 3,528 3,528 ● Middle East * 31 31 10,346 10,346 ●

43. Slide 43: CDL Hospitality Trusts Trading Performance

    CDL Hospitality Trusts Trading Performance S$’000 Q1 2018 Q1 2017 Change Gross Revenue 51,795 46,411 11.6% Net Property 37,818 35,872 5.4% Income (NPI) The Lowry Hotel Gross revenue and NPI increased mainly due to :  Inorganic contribution from both The Lowry Hotel and Pullman Hotel Munich which we

44. Slide 44: Innovation

    Innovation

45. Slide 45: Investments into Synergistic PropTech

    Investments into Synergistic PropTech China’s Leading Operator of Co-working Space  Invested RMB 102 million to date  Acquired 24% equity stake for RMB 72 million in Jan 2017  In Sep 2017, participated in Series A Funding of RMB 200 million  CDL is Distrii’s second largest shareholder after its

46. Slide 46: 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

47. Slide 47: www.cdl.com.sg

    New Futura, Singapore www.cdl.com.sg

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