Metro Holdings Ltd · SGX:M01
Metro — FY2009 Earnings Presentation
47 slides from Metro's earnings presentation, May 25, 2009
Slide 1: SGX Announcement: FY2009 Results Presentation
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 METRO HOLDINGS LIMITED of Announcement is submitted with METRO HOLDINGS LIMITED respect to
Slide 2: FY2009 Results Presentation
METRO HOLDINGS LIMITED FY2009 RESULTS PRESENTATION 25 May 2009
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 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 BEIJING Metro Tower, Shanghai GIE Tower, Guangzhou Gurney Park, Penang SHANGHAI List of Investments GUANGZHOU Shui On Land Crown
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) 6¶P (100%) (1) Metro City, 36 yr term 60% 15,342 38,560 114 94.2 226 Shanghai from 1993 Metro City, 40 yr term 50% 32,484 84,390
Slide 8: Property Investment – Properties Under Development
PROPERTY INVESTMENT ± Portfolio Summary Properties Under Development: Location % owned by Tenure Lettable Area Scheduled No. of Tenants Grp (sqm) Opening Under LOI (1) Metropolis 50 yr term Approx 20% Tower, Beijing, PRC 31.5% 23,000 Beijing from 2001 Late 2QFY2010 ECMall, 40 yr term Beijing Beijing
Slide 9: Property Investment – Property Valuation
PROPERTY INVESTMENT Property Valuation (100%) (1): FY2008 (S$¶m) FY2009 (S$¶m) (%) Metro City, Shanghai 209 226 +8.1 Metro City, Beijing 345 334 -3.2 GIE Tower, 92 99 +7.6 Guangzhou Metro Tower, 173 181 +4.6 Shanghai Gurney Plaza - 88 - Extension, Penang (2) Metro City, Beijing 1 Financial Street, -
Slide 10: Property Investment – Occupancy Rates
PROPERTY INVESTMENT Occupancy Rates: FY2008 (%) FY2009 (%) Metro City, Shanghai 99.4 94.2 Metro City, Beijing (1) 81.1 65.6 GIE Tower, Guangzhou 68.1 82.7 Metro Tower, Shanghai 97.9 98.6 Gurney Plaza Extension, - 98.1 Penang (2) 1 Financial Street, Beijing (3) - 18.0 Metro City, Beijing(1) Metro Cit
Slide 11: Property Investment – Expiry Profile
PROPERTY INVESTMENT ± Expiry Profile Expiry Profile by Gross Rental Income: 1H2010 (%) 2H2010 (%) Metro City, Shanghai 18.23 15.85 Metro City, Beijing 0.26 - GIE Tower, Guangzhou 11.50 9.30 Metro Tower, Shanghai 57.71 22.23 Gurney Plaza Extension, - - Penang 1 Financial Street, Beijing - - Metro Cit
Slide 12: Metro City, Shanghai
METRO CITY, SHANGHAI Top 10 Tenants: Name of Tenant Trade Sector % of total lettable area Buynow Computer Electronics & IT World 19.18% Physical Fitness & Leisure & Entertainment/ 10.22% Beauty Centre Sport & Fitness Tenant Mix by Lettable Area Kodak Cinema World Leisure & Entertainment/ (as at Mar
Slide 13: Metro Tower, Shanghai
METRO TOWER, SHANGHAI Top 10 Tenants: Name of Trade Sector % of lettable Tenant area Microsoft IT Services & 24.82% Telecommunications Tenant Mix by Lettable Area Exxon Mobil Petroleum & Chemicals 20.68% (as at Mar 31, 2009) Swatch Group Consumer Products 9.83% KFC F&B 8.51% AIA Banking, Insurance a
Slide 14: 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 nant Mix by y Le ettable eAArea r Gome Electronics & IT ( t M 31 2009) 3.79% 2.76% 0.91% 0.86% es/Toys/Jewelry s 0.78% 0.
Slide 15: 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 Mar 31, 2009) Guang Dong Bank Banking, Insurance & 6.34% Financial Services Swiss Ya Pei Pharmaceutical
Slide 16: Gurney Park, Penang
GURNEY PARK, PENANG Gurney Plaza Extension ± retail component off Gurneyy Park Soft opening of 12,577 square metres extension in mid November 2008 Top 10 Tenants: OOccupancy of 98.1% Name of Trade Sector % of Tenant lettable area tore 39.37% oes 7.60% Tenant Mix by Lettable Area urt 2.93% (as a
Slide 17: 1 Financial Street, Beijing
1 FINANCIAL STREET, BEIJING Joint development with HSBC NF China Real Estate Fund / Nan Fung Located in the Financial Street Area, Xi Cheng 'LVWULFW%HLMLQJ¶VFHQWUDOEXVLQHVVGLVWULFW 4-storey podium connecting two office towers and three levels of basement Completed in late 4QFY2009 Two tena
Slide 18: Metropolis Tower & ECMall, Beijing
METROPOLIS TOWER & ECMALL, BEIJING Ownership Split: Metro Group ± 31.5% ECM Group ± 37% HSBC NF ± 31.5% ECMall Located next to Metropolis Tower Metropolis Tower 6-storey, 4-basement retail mall Joint development with ECM Group 7RFRQWULEXWHWRWKH*URXS¶V and HSBC NF China Real Estate topline by
Slide 19: Property Investment – Updates
PROPERTY INVESTMENT ± UPDATES ,QWHUQDWLRQDO&RPPHUFHDQG7UDGH3OD]D ³,&73OD]D´ Sold off entire stake in Hualing International Commerce and Trade Plaza in Urumqi, China as at January 20, 2009 Capital contribution of RMB144.6 million returned 6KDUHKROGHUV¶ORDQVRI86PLOOLRQUHSDLG ICT Plaza Urumqi 18
Slide 20: Retail Operations
Retail Operations
Slide 21: 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 B
Slide 22: Retail Operations - Updates
RETAIL OPERATIONS - UPDATES Singapore: - New Metro City Square due to open in 3QFY2010 Trading environment stabilised Indonesia: - Economic downturn impact on Indonesia lags Singapore by a quarter Delay opening of Metro Grandaria, Jakarta to 1QFY2011 Trading environment stabilising 21
Slide 23: Financial Highlights
Financial Highlights x4 PA] METRO
Slide 24: FY2009 Results Highlights
FY2009 RESULTS HIGHLIGHTS Property division maintains upward trend Attributable to higher rental income and a strengthening of the Chinese yuan against Singapore dollar Retail sales impacted by weakening consumer sentiments Local consumer demand and demand from foreign visitors fell, especia
Slide 25: Financial Highlights
FINANCIAL HIGHLIGHTS Profit & Loss Accounts: 4QFY08 4QFY09 Change FY2008 FY2009 Change 6¶ 6¶ (%) 6¶ 6¶ (%) Turnover 53,237 50,222 -5.7 224,409 200,285 -10.8 Profit Before Tax 36,420 28,545 -21.6 86,482 38,947 -55.0 Net Profit Attributable to 25,628 38,183 (1) +49.0 65,968 39,411 (1) -40.3 Shareholde
Slide 26: 4Q Revenue Breakdown
4Q REVENUE BREAKDOWN One-time recognition of service charges of S$4 million under 6¶P property revenue 60 50 40 36.5 35.2 30 20 10 12.8 15.0 0 4QFY2008 4QFY2009 Property Revenue One-time Service Charges of S$4m Retail Revenue Property revenue rose 17.3% y-o-y Excluding the one-time recognition o
Slide 27: Full Year Revenue Breakdown
FULL YEAR REVENUE BREAKDOWN One-time recognition of service charges of S$4 million under S$28.0 million of sales property revenue from Metro Tampines 6¶P 250 28.0 200 150 148.4 147.9 100 50 44.0 52.3 0 FY2008 FY2009 Property Revenue One-time Service Charges Retail Revenue Metro Tampines Revenue Pr
Slide 28: Turnover by Business Segments
TURNOVER BY BUSINESS SEGMENTS FY2009 FY2008 27
Slide 29: PBT by Business Segments
PBT BY BUSINESS SEGMENTS FY2009 FY2008 28
Slide 30: Balance Sheet Highlights
BALANCE SHEET HIGHLIGHTS As at Mar 31, 2008 As at Mar 31, 2009 Change (%) 6¶ 6¶ Property, plant and 11,874 11,965 +0.8 equipment Investment Properties 498,568 514,480 +3.2 Non-current Assets 417,409 515,731 +23.6 Current Assets 306,073 271,266 -11.4 Total Assets 1,233,924 1,313,442 +6.4 Current Liab
Slide 31: Financial Highlights – Financial Ratios
FINANCIAL HIGHLIGHTS Financial Ratios: FY2008 FY2009 Earnings per share after tax and minority 10.46 6.25 interests (cents) 5HWXUQRQVKDUHKROGHUV¶IXQGV 7.89 4.35 Return on total assets (%) 5.63 3.09 Net assets per share (cents) 139.4 148.3 Debt/Equity ratio (times) 0.02 0.01 Final/Interim Dividend pe
Slide 32: Dividend Payout
DIVIDEND PAYOUT Payout Rate 45.0% 40.9% 40.0% 32.5% 35.0% 31.8% 30.0% 25.0% 20.0% 16.3% 15.0%
Slide 33: Market Outlook
Market Outlook
Slide 34: Market Outlook – Shanghai
MARKET OUTLOOK ± SHANGHAI Continuing weak market conditions for Grade A office (1) ¾ Q1 2009 saw rental levels continue to decrease and vacancy rate continue to increase ¾ Low demand and high amount of new supply ¾ Amount of net absorption within the overall Grade A office market has displayed a n
Slide 35: Market Outlook – Beijing
MARKET OUTLOOK ± BEIJING Leasing demand for office space dramatically weakened (1) ¾ 0DUNHW¶VDYHUDJHUHQWFRQWLQXHGWRGHFOLQHZKLOHDYHUDJHYDFDQF\UDWHDVRI4ZDVLQFUHDVHGWR 18.97% ¾ Most noticeable increase in vacant space occurred in the CBD ¾ Most noticeable downward adjustments to rents in the CBD, Luf
Slide 36: Market Outlook – Guangzhou
MARKET OUTLOOK ± GUANGZHOU Increase in take-up volume for Grade A office space (1) (2) ¾ Due to significant decrease in average rental of Grade A office property as tenants capitalise on falling rental rates, locking in cost savings ¾ Total take-up volume was 5,800 sq m ± reversed from the negativ
Slide 37: Market Outlook – China
MARKET OUTLOOK ± CHINA ³5HFRYHU\LQ&KLQDPD\DOUHDG\EHXQGHUZD\DQDO\VWVVD\´ - The Edge, April 13, 2009 ³2Q$SULOWKH:RUOG%DQNVDLG WKDW&KLQD¶VHFRQRP\LVRQWKH PHQGµIXHOOHGODUJHO\E\WKH FRXQWU\¶VKXJHHFRQRPLFVWLPXOXV SDFNDJH¶7KHWXUQDURXQGLVµOLNHO\ to begin this year and take full hold LQ¶LWDGGHG´ ³,QDQ$SULOUHSR
Slide 38: Market Outlook – Retail
MARKET OUTLOOK ± RETAIL Singapore: Retail sales fall for 6th consecutive month in March ¾ Sales fell 7.3% year-on-year (1) ¾6WHHSHUWKDQ)HEUXDU\¶VUHYLVHGGURS ¾ Figures reflect weak visitor arrivals and may not reflect locals spending less, according to Barclays economist (1): ¾ Retail sales are lik
Slide 39: Growth Strategies
Growth Strategies x4 PA] METRO
Slide 40: 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 - Enhancing Merchandise Offering Selection - Improving Customer Service - Strategic Partnerships
Slide 41: Growth Strategies – Property Development and Investment
GROWTH STRATEGIES Property Development and Investment Leverage on Rich Retail Experience ¾ Optimise tenant mix ¾ Continual enhancement of net lettable area ¾ Enhance rental yield Capitalise on Strong Foothold in China ¾ Opportunistic search for new projects Strategic Partnerships ¾ Careful sel
Slide 42: Growth Strategies – Retail Operations
GROWTH STRATEGIES Retail Operations Addition of new retail outlets ¾ New Metro City Square scheduled to open in 3QFY2010 ¾ Plans to open more outlets in Singapore when suitable real estate opportunities present themselves ¾ New Metro Grandaria, Jakarta targeted to open in 1QFY2011 Enhance Mercha
Slide 43: Growth Strategies – CRM and Marketing Platform
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, e.g. Facebook, as new media in marketing co
Slide 44: Outlook
x4 PA] METRO
Slide 45: Outlook – Property Segment
OUTLOOK Property Segment: Overall average occupancy rate of completed properties at 87.8% (1) ¾ 0DLQWDLQHGIURP4)<¶V$25RI ¾ Boosted by healthy occupancy rate at newly completed Gurney Plaza Extension (completed in late 3QFY2009) ¾ Rental income from properties in China expected to remain stable 2
Slide 46: Outlook – Retail Segment
OUTLOOK Retail Segment: Slowdown in trading environment of retail division stabilising ¾ Slowdown due to impact of global economic downturn on Singapore and Indonesian economies Trading environment in Singapore and Indonesia shows indicative stabilising ± will continue to monitor With opening
Slide 47: Thank You
Tao 4) x4 PA] METRO