Slide 1: Full Year Financial Report 1 Jan – 31 Dec 2008
FULL YEAR FINANCIAL REPORT 1 Jan – 31 Dec 2008 26 FEBRUARY 2009 CDL ANALYST PRESENTATION * Artist’s Impression of Palais Renaissance
Slide 2: Agenda
AGENDA 1. FINANCIAL HIGHLIGHTS 2. SINGAPORE PROPERTY MARKET 3. OPERATIONS REVIEW 4. MARKET OUTLOOK 5. MOVING FORWARD * Artist’s Impression of The Arte
Slide 3: Financial Highlights
FINANCIAL HIGHLIGHTS * Artist’s Impression of Livia
Slide 4: Key Financial Highlights
KEY FINANCIAL HIGHLIGHTS • 2nd highest earnings since inception (1963), despite challenging economic conditions. • Conservative accounting policy of stating investment properties, hotels and CDL H-Reit at cost. • No impairment on development properties and land bank for FY 2008. • Based on a recent
Slide 5: Revenue for the Year Ended Dec
FINANCIAL HIGHLIGHTS Revenue for the Year Ended 31 Dec 3,500 3,106 2,945 3,000 2,547 2,500 2,326 2,380 2,374 2,289 $ million 2,000 1,500 1,000 500 0 2002 2003 2004 2005 2006 2007 2008 Year Note : The above financial information is extracted from yearly announcements.
Slide 6: PATMI for the Year Ended Dec
FINANCIAL HIGHLIGHTS PATMI for the Year Ended 31 Dec 725 700 581 600 500 $ million 400 352 300 227 200 200 151 152 100 0 2002 2003 2004 * 2005 2006 2007 2008 Year * Restated Note : The above financial information is extracted from yearly announcements. The group has adopted FRS 40 cost model whereby
Slide 7: Financial Highlights: 10-Year Analysis
FINANCIAL HIGHLIGHTS 10-Year Analysis 1999 2000# 2001# 2002 2003 2004# 2005 2006 2007 2008 Revenue $2,015m $2,626m $2,227m $2,289m $2,326m $2,380m $2,374m $2,547m $3,106m $2,945m Profit before tax $513m $546m $139m $243m $214m $503m $404m $692m $955m $834m PATMI $383m $287m $54m $151m $152m $227m $2
Slide 8: Summary of Financial Highlights
SUMMARY OF FINANCIAL HIGHLIGHTS FY FY % 2008 2007 Change Revenue ($m) 2,945 3,106 (5.2) Profit before tax ($m) 834 955 (12.7) PATMI ($m) 581 725 (19.9) PATMI ($m) # 578 691 (16.4) Basic Earnings Per Share (cents) 62.5 78.3 (20.2) Basic Earnings Per Share (cents) # 62.2 74.6 (16.6) NAV Per Share ($)
Slide 9: Revenue by Segment – 2008 vs 2007 & 2006
FINANCIAL HIGHLIGHTS Revenue by Segment – 2008 vs 2007 & 2006 $m 1,987 2,000 1,866 1,846 1,800 1,600 2008 1,400 2007 1,200 2006 1,000 862 773 800 600 485 400 246 201 168 200 60 56 47 0 Property Hotel Rental Others Development Operations FY 2008 FY 2007 FY 2006 Property Development 26% 28% 19% Hotel
Slide 10: Profit Before Tax by Segment – 2008 vs 2007 & 2006
FINANCIAL HIGHLIGHTS Profit Before Tax by Segment – 2008 vs 2007 & 2006 $m 520 506 476 460 397 2008 400 2007 340 285 2006 280 245 226 220 136 134 160 100 30 29 40 40 (20) (24) Property Hotel Rental Others Development Operations FY 2008 FY 2007 FY 2006 Property Development 57% 53% 33% Hotel Operation
Slide 11: Capital Management
FINANCIAL HIGHLIGHTS Capital Management As at 31/12/08 As at 31/12/07 Cash flows from operating activities $448m $260m Cash and cash equivalents $776m $712m Net Borrowings $3,378m $3,328m Gearing ratio without taking in fair value 48% 48% gains on investment properties Gearing ratio after taking in
Slide 12: CDL's Net Gearing (2004 – 2008)
FINANCIAL HIGHLIGHTS CDL’s Net Gearing (%) (2004 – 2008) 70 Net Gearing (%) 54 After taking in After taking in 50 48 fair value gains 50 48 fair value gains on investment on investment properties properties 40 32 30 2004 (restated) 2005 2006 2007 2008 Maturity Period FY 2008 Within 1 year 21% 1 to
Slide 13: Singapore Property Market
SINGAPORE PROPERTY MARKET •Artist’s Impression of City Square Mall
Slide 14: Property Price Index – Residential (2004 – 2008)
SINGAPORE PROPERTY MARKET Property Price Index – Residential (2004 – 2008) All Residential 200 Q4 08 180 162.8 160 140 120 100 80 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 04 04 04 04 05 05 05 05 06 06 06 06 07 07 07 07 08 08 08 08 Source : URA, 4Q 2008
Slide 15: New Private Residential Units Launched vs Sold
SINGAPORE PROPERTY MARKET No. of New Private Residential Units Launched vs Units Sold (Projects under Construction) (2004 – 2008) New Units Launched New Units Sold (Projects Under Construction) 14,000 12,000 New Units New Units Launched Sold (Uncompleted) 10,000 2004 5,881 4,617 8,000 2005 8,201 7,7
Slide 16: Uncompleted Private Residential Units Available
SINGAPORE PROPERTY MARKET No. of Uncompleted Private Residential Units Available (2004 – 2008) Not Launched 20,456 Launched & Unsold Launched Not Total 20,000 18,266 & Unsold Launched 17,469 16,575 15,677 15,836 1998 (Q1) 8,930 11,526 20,456 16,000 14,718 1999 2,482 11,627 14,109 14,109 2000 4,825 1
Slide 17: Property Price Index – Commercial (2004 – 2008)
SINGAPORE PROPERTY MARKET Property Price Index – Commercial (2004 – 2008) 140 Q4 08 112.5 120 100 Q4 08 110.1 Index 80 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 04 04 04 04 05 05 05 05 06 06 06 06 07 07 07 07 08 08 08 08 Source : URA, 4Q 2008
Slide 18: Average Office Rental in CBD
SINGAPORE PROPERTY MARKET Average Office Rental in CBD (2004 – 2008) 18 $16.00 $14.95 16 Raffles Place 14 Non CBD-Core 12 $psf/month $9.60 $9.85 10 $8.60 8 $5.90 $5.70 6 4 $3.35 2 0 2004 2005 2006 2007 2008 Source : JLL Research, 4Q 2008
Slide 19: Average Prime Level Retail Rental
SINGAPORE PROPERTY MARKET Average Prime Level Retail Rental (2004 – 2008) 35 $30.55 $30.80 $29.85 30 25 $21.65 $21.50 $psf/month $21.05 20 15 Primary Area 10 (Orchard Road) Suburban Area 5 0 2004 2005 2006 2007 2008 Source : JLL Research, 4Q 2008
Slide 20: Operations Review
OPERATIONS REVIEW •Artist’s Impression of The Quayside Isle at Sentosa Cove
Slide 21: Property Development
PROPERTY DEVELOPMENT Livia Show Suite
Slide 22: Planned Residential Project Launches for H1 2009
OPERATIONS REVIEW Planned Residential Project Launches for 1H 2009 (subject to market conditions) Projects Units Livia (Total 724) 60 “The Arte” at Thomson (Total 336) 100 The Quayside Isle @ Sentosa Cove (Total 228) 100 Total 260
Slide 23: Land Bank by Sector
OPERATIONS REVIEW Land Bank by Sector (as at 31 Dec 2008) Type of Development Land Area (sq ft) % Residential (Local & Overseas) 3,054,423 72 Commercial / Hotel 739,597 17 Industrial 462,818 11 TOTAL 4,256,838 100 Residential (Overseas) 8% Industrial 11% Residential (Local) 64% Commercial/ Hotel 17%
Slide 24: Rental Revenue by Sector
OPERATIONS REVIEW Rental Revenue by Sector $246m 250 $201m 200 Rental Revenue ($m) 162 150 Office 128 Retail Industrial 100 Others * 39 33 50 10 8 35 32 0 2008 2007 * Including car park, serviced apartment and residential
Slide 25: Hotel Operations
HOTEL OPERATIONS Millennium Bostonian Hotel Boston
Slide 26: Operations Review: M&C Sales and Earnings
OPERATIONS REVIEW 2007 2007 2008 Constant Reported (Constant (Reported (Actual) Currency Currency Currency) Currency) Sales $1,866m $1,844m $1,987m 1% 6% Core Earnings $285m $285m $305m - 7% One-off Adjustments <$40m> <$18m> <$20m> PBT Reported $245m $267m $285m 8% 14% • In terms of reported earning
Slide 27: M&C Hotel Portfolio
OPERATIONS REVIEW • M&C has an extensive and geographically diversified portfolio of hotels. • As at 31 Dec 2008, there were 102 hotels operational and 17 hotels in the pipeline to be managed under M&C’s brands. USA UK Europe Asia Middle East NZ Total 20 20 4 19 9 30 102 • Located primarily in key g
Slide 28: Hotel Revenue by Region
OPERATIONS REVIEW Hotel Revenue by Region 2008 2007 35% 31% 621 639 New Zealand 6% 119 7% Europe 136 United States 657 586 Asia 522 573 28% 31% 33% 29% $1,866m $1,987m Overall change = 6%
Slide 29: Hotel Occupancy by Region
OPERATIONS REVIEW Hotel Occupancy by Region 80.0 77.0 76.9 77.8 74.9 Hotel Occupancy Rate (%) 71.2 68.9 70.0 66.6 65.6 2008 2007 60.0 50.0 Asia United States Europe New Zealand
Slide 30: Hotel Revenue Per Available Room at Constant Currency
OPERATIONS REVIEW Hotel Revenue Per Available Room at Constant Currency 200 182 179 170 158 158 151 Hotel RevPAR ($) 140 132 2008 2007 * 110 81 81 80 50 Asia United States Europe New Zealand * For comparability, FY 2007 RevPAR has been translated at constant exchange rates (31 Dec 2008).
Slide 31: M&C's Core Earnings (2004 – 2008)
OPERATIONS REVIEW M&C’s Core Earnings (2004 – 2008) 140 118.3 125.9 120 100 94.4 80 74 £m 60 55 40 20 0 2004 2005 2006 2007 2008 Year “Compounded over 5 years, M&C’s core earnings has been growing at an annual rate of 25.2%.”
Slide 32: M&C Group Gearing and Cash
OPERATIONS REVIEW M&C Group FY 2008 FY 2007 Gearing Ratio 16.4% 18.3% Interest Cover Ratio 12.4 x 8.5 x Cash £212.1m £156.3m
Slide 33: M&C Group Outlook
OPERATIONS REVIEW M&C Group • Trading conditions for the hotels is expected to be challenging. • However, M&C is confident of performing better than other hotel operators because of its extensive and geographically diversified portfolio of hotels which offer competitive rates and good value for mone
Slide 34: Market Outlook
MARKET OUTLOOK * Artist’s Impression of City Square Mall
Slide 35: Singapore Economic Outlook
MARKET OUTLOOK Singapore Economic Outlook • The deepening of the global financial crisis has resulted in a fall in GDP by 3.7% in Q4 2008 • GDP growth for 2008 is estimated at 1.2%, as compared to initial estimate of between 4.5% and 6.5% at the start of the year • 2008 was a challenging year for th
Slide 36: Property Market – Residential
MARKET OUTLOOK Property Market – Residential • Residential property prices fell by 4.7% in 2008 • While property prices for the mass market had dropped slightly, the high-end segment showed steeper falls • Transaction volume of new residential units fell 71% to 4,264 units • Although the high-end se
Slide 37: Property Market – Office Rentals
MARKET OUTLOOK Property Market – Office Rentals • Office rentals have moderated, falling 7.0% in 2008 • Islandwide, occupancy for office space is 91.2% (2007: 92.7%) • Substantial new office supply will come onto market in 2011/2012
Slide 38: Moving Forward
MOVING FORWARD * Artist’s Impression of The Quayside Isle at Sentosa Cove
Slide 39: Moving Forward
MOVING FORWARD • “3P” Approach – Prudence, Pragmatism, Patience are needed to tide through the global economic crisis • The expansionary 2009 Budget measures will help viable companies stay afloat and Singapore will be one of the first to emerge from this recession stronger. There could be off-Budge
Slide 40: 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 41: Thank You
* Millennium Knickerbocker Hotel Chicago THANK YOU