China Overseas Land & Investment Limited · HKEX:688
China Overseas Land & Investment — Investor Presentation (May 2007)
42 slides from China Overseas Land & Investment's investor presentation, May 2007
Slide 1: China Overseas Land & Investment Ltd. Presentation For Investors
China Overseas Land & Investment Ltd. Presentation For Investors May, 2007 ® WH RAKE RAMA CHINA OVERSEAS LAND & INVESTMENT LTD.
Slide 2: Content
CONTENT O) 2006 Financials 0 Operation Review O] Future Outlook TT kt BAAS CHINA OVERSEAS LAND & INVESTMENT LTD.
Slide 3: 2006 Financials
2006 Financials 1) WE Ie RAMA CHINA OVERSEAS LAND & INVESTMENT LTD.
Slide 4: 2006 Major P/L Items
2006 Major P/L Items 7 2006 2005 Change Turnover HK$ Million 10,910 6,971 56.5% Gross Profit HK$ Million 3,273 2,098 56.0% Gross Margin % 30 30 0.0% Net Profit HK$ Million 2,371 1,502 57.9% Net Profit % 21.73 21.55 0.84% Margin EPS HK Cents 35.5 23.4 51.7% DPS HK Cents 10 7 42.9% Payout Ratio % | 28
Slide 5: 2006 Major B/S Items
2006 Major B/S Items 2006 2005 Change Cash & Cash Equivalents HK$ Billion} 3.79 3.18 19.18% Total Assets HK$ Billion] 35.85 25.14 42.60% Total Liabilities HKS$ Billion} 20.96 14.36 45.96% Shareholders’ Equity HK$ Billion} 15.45 11.08 39.44% Return on Equity % 15.27 13.55 12.69% Net Gearing % 34 39 -
Slide 6: 2006 Net Profit Growth
200? 2006 Net HM Profit é t Growth h (HKS Million) 2001 2002 2003 2004 2005 2006 *; Exclude Impairment losses on HK property projects amount to HKD480m in 2002 © WEI RAMA CHINA OVERSEAS LAND & INVESTMENT LTD.
Slide 7: 2006 End-of-Year Net Gearing Ratio
2006 End-of-Year Net Gearing Ratio EER it ee Ti NS ae 40% 34% 35% 30% 25% | 21% 20% § 15% + 10% + % 5% F 3 39% 0% i a 1 ] 2003. 12. 31 2004. 12. 31 2005. 12. 31 2006. 12. 31 OF WES ht BARS 6 CHINA OVERSEAS LAND & INVESTMENT LTD.
Slide 8: 2006 General Financial Highlights
2006 General Financial Highlights SA OO O Moody’s and Standard & Poor’s maintained our Baa3 and BBB- Ratings in their 2006 reviews. O In July 2006, the company issued bonus warrants to our shareholders. As at the end of 2006, a total of HK$ 2.1 billion was raised, of which over HK$ 1.8 billion was c
Slide 9: Little Impact of LAT on COLI
Little Impact of LAT on COLI a Ea ee ee eae O LAT has been existed since 1994. The notice for settlement of LAT is to re-emphasize the implementation of the existing rules. O The LAT payables in 2006 and the preceding years were fully accounted for in accordance with China LAT taxation rules and HK
Slide 10: Operation Review
Operation Review @® PB Ob ot AS CHINA OVERSEAS LAND & INVESTMENT LTD.
Slide 11: 2006 Turnover and Profit Breakdowns
2006 Turnover and Profit Breakdowns ae re A ERE Total Turnover: HK$ 10.91Billion Property Management 1. 86% 7.56% Infrastructure & Others Investment Property 0. 95% 89. 63% Property Development MInvestment Property Minfrastructure and Others Property Development @ Property Management 10 Segment Resu
Slide 12: 2006 Contracted Sales in Value
2006 Contracted Sales in Value (HK$ 00’million) Mises ee a a A 160; 140; 120; 100; 80 60; 40 20 2002 2003 2004 2005 2006 ()ikekakekaleteael S=4 CHINA OVERSEAS LAND & INVESTMENT LTD. 11
Slide 13: 2006 Contracted Sales in GFA
2006 Contracted Sales in GFA 000’ Sq.m. 2002 2003 2004 2005 2006 PA) PHS et RS S=4 CHINA OVERSEAS LAND & INVESTMENT LTD. 12
Slide 14: 2006 Total GFA Completed for Occupation
2006 Total GFA Completed for Occupation (‘000 Sq.m.) 2002 2003 2004 2005 2006 ® TY Be Oh ot ARS 13 CHINA OVERSEAS LAND & INVESTMENT LTD.
Slide 15: Total Sales: 1.72 Million Sq.m.
14 Total Sales: 1.72 Million Sq.m. Stock Sales 17% Presales 27% 56% Sales For Occupation @Presale MSales for Occupation MStock Sales Total Sales: HK$14.20 Billion Stock Sales 14% Presales 31% 55% Sales For Occupation @Presales @Sales for Occupation HStock Sales © WRI BARA CHINA OVERSEAS LAND & INVES
Slide 16: Land Cost, ASP and Gross Margin In PRC
Land Cost, ASP and Gross Margin In PRC 100% + 9000 8200 0% | 7800 | s000 % b 80% 7000 70% | 6200 200 6000 60% 5000 50% 4000 40% 30.0% 31.5% 3000 30% + ” 20% | _ —K 4 2000 <_= 1958 HK 1559 4000 10% | ¥— 1271 815 7 0% 0 2003 2004 2005 2006 —t— Gross Margin -@—ASP — X~ Land Cost 15
Slide 17: Sales and ASP by Regions and Cities
Sales and ASP by Regions and Cities 70 60 50 40 30 20 10 16 4 30000 24751, 25000 + 20000 4 15000 4 10000 13.96 4 5000 ° Changchun Xi'an Chengdu Pan-Bohai Yangtze River PearlRiver HK & Macau . Region Region [mmm GFA Sold (0'000 Sqm) lime Sales Value (00 Million HK$) —e—ASP ($HK/Sq.m.) | P Be Oh ot AA
Slide 18: Stock Sold and Carry Forward
Stock Sold and Carry Forward Ee a Stock c/f 31/12/2005 2006 () oP Be oh ke BFA 17 S24 CHINA OVERSEAS LAND & INVESTMENT LTD.
Slide 19: Future Outlook
Future Outlook @® WH Re BARA CHINA OVERSEAS LAND & INVESTMENT LTD.
Slide 20: @® tr Be ok ot BAS
@® tr Be ok ot BAS CHINA OVERSEAS LAND & INVESTMENT LTD.
Slide 21: COLI's Growth Target and Growth Model
COLI’s Growth Target and Growth Model Re HR a ME 012007: target a minimum of 30% annual net profit growth OMedium term: target at a minimum of 20% net profit growth OWe use JV andM & Ato support our core Organic Growth Model to achieve the above targets. th Be oh et BAS CHINA OVERSEAS LAND & INVESTM
Slide 22: 2007-2008 Estimated Project Completion by GFA
s00ea008 F Estimated fed Project Completion by GFAs 350, GFA:0,000m? 255 2007E 2008E (Ry Se 2k ae BS 21 S24 CHINA OVERSEAS LAND & INVESTMENT id
Slide 23: Projects scheduled for completion by city
No. 1 Honey Lake 87 Shenzhen Greenery Heights 69 Royal Green Phase 1 & 2 84 Mount Canyon 21 Zhongshan Fairyland 64 Bay Li 189 Shanghai ay ime Jade Laguna Villa eT Ningbo Bellagio 94 Park Royal 86 Guangzhou aris Royale Jincheng Tower 32 South Garden 47 Starcrest Phase 2 A 224 Foshan Chancheng Phase 1
Slide 24: Project completion GFA by city
23 Shenzhen 406 Zhongshan 220 Shanghai 237 Ningbo 67 Guangzhou 308 Foshan 444 Beijing 490 Chengdu 585 Changchun 204 Xi’an 114 Nanjing 40 Suzhou 301 Chongqing 86 TP BB Ok 2S RF PS CHINA OVERSEAS LAND & INVESTMENT LTD.
Slide 25: 2007-2008 Estimated Contracted Sales
2007-2008 Estimated Contracted Sales a ast 300, 270 250 200 150 100 50 oO 2007E 2008E GFA: ’0,000 m? A) TE ete RMS = CHINA OVERSEAS LAND & INVESTMENT LTD. 24 (
Slide 26: To Expand Our National Coverage
To Expand Our National Coverage ) PEA eee mas 4 CHINA OVERSEAS LAND & INVESTMENT LTD.
Slide 27: Our National Leading Coverage Position
26 Our National Leading Coverage Position Xian ae # of projectsé =~ ¢ GFA (mmAy. 1.46 7 im TW Suzhou, # of projects: 6 S Sa Changchun # of projects: 5 GFA (mm2): 1.52 Beijing # of projects: 10 > GFA (mm): 1.60 Nanjing # of projects: 3 GFA (mm?): 0.86 Shanghai GFA (mm?)x2.40 =e Chongging 4 of project
Slide 28: To Sustain a Sizable, High-Quality Landbank
To Sustain a Sizable, High-Quality Landbank @® oh et BARS CHINA OVERSEAS LAND & INVESTMENT LTD.
Slide 29: New Land Acquisitions Since 2006
New Land Acquisitions Since 2006 Lot No. 7 Project 100% Residential 311.61 1031.00 4065 Lot No. 8 Project 100% Residential 176.94 350,68 2354 Suzhou Zhong Yang He Project 100% Residential 446.62 578.20 1510 Fangzhou Park Project 100% Residential 994.40 1212.80 1514 Canglang Project 100% Residential
Slide 30: Total Current Landbank
Total Current Landbank Shenzhen 1,373 8.39 The Pearl Guangzhou 934 571 River Rigion Zhongshan 312 191 Foshan 2,192 13.40 Shanghai 985 6.02 The Yangtze River Suzhou 2,303 14.08 Region Nanjing 855 5.23 Hangzhou 135 0.83 Ningbo 361 2.20 The Baohai Rim Beijing 1,595 9.75 Chengdu 2,031 12.42 Northeastern
Slide 31: COLI's Landbanking Policy
COLI’s Landbanking Policy Sa Ges a ee 0 Total lankbank Objective: 0 Adequate to meet the development schedule needs for achieving over 20% net profit growth annually in the next 4-5 years. 0 New land acquisition target in 2007: O Minimum: 3 million Sq.m. O The actual acquisition amount will consider
Slide 32: To Restructure Infrastructure Business
To Restructure Infrastructure Business TP BB ek ok ot AS CHINA OVERSEAS LAND & INVESTMENT LTD. |
Slide 33: COLI's Business Structure
COLI’s Business Structure China State Construction Engineering Corporation (-). China Overseas Holdings Ltd. COLI (0688) = Xian = Suzhou # Chengdu & Foshan = Zhongshan Shanghai @ Guangzhou 32° Ningbo = Beijing = Shenzhen @ Nanjing @ Changchun = Chongqing @ Hangzhou Beijing Shanghai Hong Kong To Be R
Slide 34: To Enhance Financial Capability
To Enhance Financial Capability @® iF Be ok ot BAP CHINA OVERSEAS LAND & INVESTMENT LTD.
Slide 35: Prudent financial policy
OAdhere strictly to the company prudent financial policy OFocus on generating more Cash inflows from operations OExplore all appropriate financing vehicles OImprove the utilization and effective allocation of financial resources WES RAM AS 34 CHINA OVERSEAS LAND & INVESTMENT LTD.
Slide 36: To Implement New Strategic Initiatives
To Implement New Strategic Initiatives I (:) ukéheckavkackc kale ned | 24 CHINA OVERSEAS LAND & INVESTMENT LTD. |
Slide 37: New Strategic Initiatives
New Strategic Initiatives ei 2S ec ees Sea EME so SUI MR eee ie | O Consolidate our leading positions in terms of turnover, net profits, market share and brand position in existing cities. O Expand our national coverage further by penetrating 1 to 2 new cities in Pan-Bohai Rim. O Pursue our “Best Qu
Slide 38: Good Prospects For COLI Ahead
Good Prospects For COLI Ahead | () hiileetearanteeiocketed | | CHINA OVERSEAS LAND & INVESTMENT LTD.
Slide 39: Comparative Advantages of COLI
Comparative Advantages of COLI En ja a ee The most valued property brand in China Core business in Mainland China, supplemented by Hong Kong & Macau business Successful profit-making and expansion models Sustain a sizable, high-quality landbank Capability to provide an integrated, whole chain of val
Slide 40: Our Views on Macro-Controls
Our Views on Macro-Controls EEE ee ee O The targets of governmental macro-contro] measures O] The Real Estate Industry has been playing an important role in promoting the national economic growth and improving the living standard of the mass population. The government is targeting to maintain a sust
Slide 41: Thank you!
Thank you! We are ready to answer your questions ® WY BB Ok ot BAS CHINA OVERSEAS LAND & INVESTMENT LTD.
Slide 42: Disclaimer
Disclaimer These materials have been prepared by China Overseas Land and Investment Ltd. ( “COLI” or the “Company” ) solely for information use during its presentation may not be reproduced or redistributed to any other person without the permissions from COLI. By attending this presentation, you ar
China Overseas Land & Investment — Investor Presentation (May 2007) on 6ix