China Overseas Land & Investment Limited · HKEX:688
China Overseas Land & Investment — FY2006 Earnings Presentation
43 slides from China Overseas Land & Investment's earnings presentation, March 2007
Slide 1: 2006 Financial Results Presentation For Investors
2006 Financial Results Presentation For Investors March, 2007 (ieee ir teeacorietind CHINA OVERSEAS LAND & INVESTMENT LTD.
Slide 2: Content
CONTENT 0) 2006 Financials O Operation Review O) Future Outlook Bete Beas CHINA OVERSEAS LAND & INVESTMENT LTD.
Slide 3: 2006 Financials
2006 Financials 1) Pr BB he Ok ot PS CHINA OVERSEAS LAND & INVESTMENT LTD.
Slide 4: 2006 Major P/L Items
2006 Major P/L Items i 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 3
Slide 5: 2006 balance sheet items vs 2005
2006 2005 Change Cash & Cash Equivalents HK$ Billion} 3.79 | — 3.18 19.18% Total Assets HKS Billion} 35.85 25.14 42.60% Total Liabilities HKS Billion} 20.96 14.36 45.96% Shareholders’ Equity HKS Billion} 15.45 11.08 39.44% Return on Equity % 15.27 13.55 12.69% Net Gearing % 34 | _39 -12.82% ® Wr BR
Slide 6: 2001-2006 Net Profit Growth
— 200I- 2006 Net Profit t Growth (HKS Million) 2001 2002 2003 2004 2005 2006 *; Exclude Impairment losses on HK property projects amount to HKD480m in 2002 rp) Ee hs BAMA = CHINA OVERSEAS LAND & INVESTMENT LTD.
Slide 7: 2006 End-of-Year Net Gearing Ratio
2006 End-of-Year Net Gearing Ratio 21% * 5% 3% 2003. 12. 31 2004. 12. 31 2005. 12. 31 2006. 12. 31 ()akcchckarcokcealokned M=4 CHINA OVERSEAS LAND & INVESTMENT LTD.
Slide 8: 2006 General Financial Highlights
2006 General Financial Highlights Bg oa eS a angi ee Mee © 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$
Slide 9: Little Impact of LAT on COLI
Little Impact of LAT on COLI RRS A ee eo VE | 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 H
Slide 10: Operation Review
Operation Review WHE RIERA MAD CHINA OVERSEAS LAND & INVESTMENT LTD.
Slide 11: 2006 Turnover and Profit Breakdowns
2006 Turnover and Profit Breakdowns eae a ee i ea a Total Turnover: HK$ 10.91Billion Property Management 1. 86% 7.56% Infrastructure & Others Investment Property 0. 95% 89. 63% Property Development MlInvestment Property @Infrastructure and Others mProperty Development | Property Management 10 Segmen
Slide 12: 2006 Contracted Sales in Value
2006 Contracted Sales in Value e (HKS 00 ‘million) 2002 2003 2004 2005 2006 Th Bt Oh ot RR rR AS 11 CHINA OVERSEAS LAND & INVESTMENT LTD.
Slide 13: Contracted sales 2002-2006
2002 2003 2004 2005 2006 ® Th Be Oh RASS CHINA OVERSEAS LAND & INVESTMENT LTD. 12
Slide 14: ® TP BR Ok Et A PR AS
® TP BR Ok Et A PR AS CHINA OVERSEAS LAND & INVESTMENT LTD. 13
Slide 15: 2006 Property Sales Breakdown
2006 Property Sales Breakdown Total Sales: 1.72 Million Sq.m. Stock Sales 17% Presales 27% 56% Sales For Occupation @Presale @Sales for Occupation M@Stock Sales 14 Total Sales: HK$14.20 Billion Stock Sales 14% Presales 31% 55% Sales For Occupation M™Presales MSales for Occupation MStock Sales 1 Oh B
Slide 16: Land Cost, ASP and Gross Margin In PRC
Land Cost, ASP and Gross Margin In PRC 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% + 0% 15 8200 7800 Send 6200 6200 20.0% 31.5% 958 kK 186 —ke— —_ et 1559 815 2003 2004 2005 2006 —&*— Gross Margin —@—ASP X_~ Land Cost ® TP BB Ok 3k APS CHINA OVERSEAS LAND & INVESTMENT LTD.
Slide 17: Sales and ASP by Regions and Cities
Sales and ASP by Regions and Cities 70 60 50 40 30 20 10 16 4 30000 62.5 24751] 25000 + 20000 4 15000 4 10000 13.96 | 4 S000 5.64) fe) Changchun Xi'an Chengdu Pan-Bohai Yangtze River Pearl River HK & Macau Region Region mam GFA Sold (0'000 Sqm) G= Sales Value (‘00 Million HK$) —e— ASP ($HK/Sq.m.) |
Slide 18: Stock Sold and Carry Forward
Stock Sold and Carry Forward Stock c/f 31/12/2005 400 287 113 2006 1640 1353 287 ® WH RIE BARA 17 CHINA OVERSEAS LAND & INVESTMENT LTD.
Slide 19: Future Outlook
Future Outlook BT eet se aa as CHINA OVERSEAS LAND & INVESTMENT LTD.
Slide 20: To Pursue a Sustainable Growth
To Pursue a Sustainable Growth @ WH MAE RA RAR CHINA OVERSEAS LAND & INVESTMENT LTD.
Slide 21: COLI's Growth Target and Growth Model
COLI’s Growth Target and Growth Model LLL STN AT A NTR 12007: target a minimum of 30% annual net profit growth OMedium term: target at a minimum of 20% net profit growth OWe use JV and M & A to support our core Organic Growth Model to achieve the above targets. (_) Pere area ® <4 CHINA OVERSEAS LAND
Slide 22: 2007-2008 Estimated Project Completion by GFAs
260 7-2008 Estimated Project Completion by GFAs GFA:0,000m? 350 2007E 2008E Eb et RA 21 S24 CHINA OVERSEAS LAND & INVESTMENT LTD.
Slide 23: 2007 Estimated Completion Schedule By Projects
22 2007 Estimated Completion Schedule By Projects No. 1 Honey Lake 87 Shenzhen Greenery Heights 69 Royal Green Phase 1 & 2 84 Mount Canyon 21 Zhongshan Fairyland 64 it Shanghai Bay Line 89 Jade Laguna Villa 11 Ningbo Bellagio 94 Guangzhou Park Royale 86 Jincheng Tower 32 South Garden 47 Starcrest Ph
Slide 24: 2008 Estimated Completion Schedule by Cities
2008 Estimated Completion Schedule by Cities Shenzhen 406 Zhongshan 220 Shanghai 237 Ningbo 67 |Guangzhou 308 Foshan 444 Beijing 490 Chengdu 585 Changchun 204 Xi’an 114 Nanjing 40 Suzhou 301 Chongqing 86 WE BLE RAMA 23 CHINA OVERSEAS LAND & INVESTMENT LTD.
Slide 25: 2007-2008 Estimated Contracted Sales
| 2007-2008 Estimated Canteactee ed Sales. _ 300, 250 200 150 100 50 oO 2007E 2008E GFA: ’0,000 m? ® TER BAMA 24 CHINA OVERSEAS LAND & INVESTMENT LTD.
Slide 26: Contracted Sales Jan-Feb 2007
Contracte ae Te ihe tits 30, 27.3 257 20 15 10 Jan. 2007 Feb. 2007 MGFA: 0,000 S.q.m. MValue: ’00 Million HK$ (_) Eee aa Mas = CHINA OVERSEAS LAND & INVESTMENT LTD. 25
Slide 27: To Expand Our National Coverage
To Expand Our National Coverage | | ) | | | { (G) PRR Rea s CHINA OVERSEAS LAND & INVESTMENT LTD.
Slide 28: National coverage by city: projects and GFA
27 Xian # of projects?3 GFA (mney 1.46 Suzhou) # of projects: 6 GFA (mm?)\2.10 Chongqing 4 of projects: 1 GEA (mm): 0.23 Chengdu # of projects: 5 GFA (mm?): 2.03, Foshan # of projects: 3 GFA (mm?): 2.19 Zhongshan # of projects: 1 GFA (mm2): 0.34 Changchun # of projects: 5 GFA (mm?): 1.52 Beijing # o
Slide 29: To Sustain a Sizable, High-Quality Landbank
To Sustain a Sizable, High-Quality Landbank @ T2=*s armas = CHINA OVERSEAS LAND & INVESTMENT LTD.
Slide 30: 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 31: Total Current Landbank
Total Current Landbank Shenzhen 1,373 8.39 The Pearl Guangzhou 934 5.71 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 Beljing 1,595 9.75 Chengdu 2,031 12.42 Northeaster
Slide 32: COLI's Landbanking Policy
COLI’s Landbanking Policy O Total lankbank Objective: O) Adequate to meet the development schedule needs for achieving over 20% net profit growth annually in the next 4-5 years. DO New land acquisition target in 2007: O Minimum: 3 million Sq.m. O The actual acquisition amount will consider the follo
Slide 33: To Restructure Infrastructure Business
To Restructure Infrastructure Business 1) TEI RAMA CHINA OVERSEAS LAND & INVESTMENT LTD.
Slide 34: COLI's Business Structure
COLI’s Business Structure (:). China Overseas Holdings Ltd. (B) APR Gees Sipevn ant Aor ele Se Cael China State Construction Engineering Corporation COLI (0688) 8 Xi'an Suzhou 2 Chengdu Foshan 8 Zhongshan 3 Shanghai @ Guangzhou 33° Ningbo = Beijing % Shenzhen ® Nanjing = Changehun = Chongging ® Hang
Slide 35: To Enhance Financial Capability
To Enhance Financial Capability OtztAsernes = CHINA OVERSEAS LAND & INVESTMENT LTD.
Slide 36: Prudent financial policy
OAdhere strictly to the company prudent financial policy OFocus on generating more Cash inflows from operations OFxplore all appropriate financing vehicles Olmprove the utilization and effective allocation of financial resources BY te BSE ok oe 35 () CHINA OVERSEAS LAND & INVESTMENT LTD.
Slide 37: To Implement New Strategic Initiatives
Slide 38: New Strategic Initiatives
New Strategic Initiatives ie ee ER ee 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 Quality” product strategy acro
Slide 39: Good Prospects For COLI Ahead
Good Prospects For COLI Ahead Tek st RAMA CHINA OVERSEAS LAND & INVESTMENT LTD.
Slide 40: Comparative Advantages of COLI
Comparative Advantages of COLI de SMa aces cies es. Sea aes 2 ee Sec 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 int
Slide 41: Our Views on Macro-Controls
Our Views on Macro-Controls Dh on en O The targets of governmental macro-control 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 sustai
Slide 42: Thank you!
Thank you ! We are ready to answer your questions @® th oh ot BAP CHINA OVERSEAS LAND & INVESTMENT LTD.
Slide 43: Disclaimer
Disclaimer RRS eS 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,
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