Metro Holdings Ltd · SGX:M01
Metro — FY2015 Earnings Presentation
52 slides from Metro's earnings presentation, May 28, 2015
Slide 1: SGX Announcement: FY2015 Results Presentation Slides
Issuer/ Manager METRO HOLDINGS LTD Securities METRO HOLDINGS LIMITED - SG1111878499 - M01 Stapled Security No Announcement Title General Announcement Date & Time of Broadcast 28-May-2015 17:10:05 Status New Announcement Sub Title FY2015 Results Presentation Slides Announcement Reference SG1505280THR
Slide 2: Metro Holdings Limited FY2015 Results Presentation
METRO HOLDINGS LIMITED FY2015 RESULTS PRESENTATION
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 A property development and investment group, backed by an established retail track record with strong presence in China, Indonesia and Singapore 3
Slide 5: Our Regional Presence
Our Regional Presence List of Properties Development properties (Under development • Metro City, Shanghai with joint venture partners) • Metro Tower, Shanghai • The Crest - residential condominium at Prince Charles • GIE Tower, Guangzhou Crescent, Singapore • EC Mall, Beijing • Nanchang Fashion Mark
Slide 6: Property Development & Investment
Property Development & Investment 5
Slide 7: Portfolio Overview
Portfolio Overview Completed Investment Properties: % owned Tenure Site Area Lettable No. of Occupancy Valuation by Group(1) (“sqm”) Area Tenants (1) Rate (%) (1) (S$’m) (“sqm”) (100%) GIE Tower, 50 yr term 100% - 28,390 33 76.7 108 (1) Guangzhou from 1994 Metro City, 36 yr term 60% 15,434 39,015 13
Slide 8: Portfolio Overview
Portfolio Overview Development Properties Under Development by an Associate / Joint Ventures: % owned by Leasable/ Expected Location Sale launch Group (1) Saleable Area (2) completion date Nanchang, Nanchang Jiangxi 30% 788,648 sqm N.A. (*) March 2018 Fashion Mark Province, PRC The Crest at Prince C
Slide 9: Property Investment
Property Investment Property Valuation (100%) as at 31 March 2015 and 2014: FY2015 FY2014 FY2015 FY2014 (%) (%) (Rmb’m) (Rmb’m) (S$’m) (S$’m) GIE Tower, Guangzhou (1) 486 487 -0.2 108 99 +9.1 Metro City, Shanghai (1) 1,044 1,129 -7.5 232 229 +1.3 Metro Tower, Shanghai (1) 935 930 +0.5 207 189 +9.5 E
Slide 10: Occupancy Rate
Occupancy Rate FY2015 (%) FY2014 (%) GIE Tower, Guangzhou 76.7 79.1 Metro City, Shanghai 88.6 90.1 Metro Tower, Shanghai 97.0 96.0 EC Mall, Beijing 98.5 96.3 Frontier Koishikawa Building, Tokyo 100.0 100.0 9
Slide 11: Property Investment – Expiry Profile
Property Investment – Expiry Profile Expiry Profile by Gross Rental Income: 1H2016 (%) 2H2016 (%) GIE Tower, Guangzhou 6.4 22.6 Metro City, Shanghai 6.6 12.2 Metro Tower, Shanghai 10.7 7.2 Frontier Koishikawa Building, Tokyo 6.7 72.2 10
Slide 12: Metro City, Shanghai
Metro City, Shanghai Top 10 Tenants: Occupancy Rate: 88.6% Name of Trade Sector % of total Tenant lettable area Buynow Computer Electronics & IT Retail Tenant Mix by Lettable Area World 12.5% (as at 31 March 2015) Physical Fitness & Leisure & Entertainment/ Sport & 7.4% Beauty Centre Fitness Food Re
Slide 13: Metro Tower, Shanghai
Metro Tower, Shanghai Top 10 Tenants: Occupancy Rate: 97.0% Name of Tenant Trade Sector % of total lettable area Office Tenant Mix by Lettable Area Exxon Mobil Petroleum & Chemicals 18.6% (as at 31 March 2015) Swatch Group Consumer Products 16.4% Energy Source Others 13.3% KFC F&B 8.4% 21.3% 24.3% P
Slide 14: GIE Tower, Guangzhou
GIE Tower, Guangzhou Occupancy Rate: 76.7% Top 10 Tenants: Name of Tenant Trade Sector % of Office Tenant Mix by Lettable Area lettable area (as at 31 March 2015) Yu Cai Restaurant F&B 14.2% Abbott Laboratories Pharmaceutical 11.7% Sino-US United Banking, Insurance & 7.7% 17.7% MetLife Insurance Fin
Slide 15: ECMall, Beijing
ECMall, Beijing Top 10 Tenants: Occupancy Rate: 98.5% Name of Trade Sector % of Tenant lettable area Retail Tenant Mix by Lettable Area Golden Jaguar F&B/Food Court 17.9% (as at 31 March 2015) C&A Fashion & Shoes 5.3% 0.3% Only/Vero/Moda/ Fashion & Shoes 1.1% Jack&Jones/ 4.4% 41.4% Selected H&M Fash
Slide 16: Frontier Koishikawa Building, Tokyo
Frontier Koishikawa Building, Tokyo Occupancy Rate: 100% Top 10 Tenants: Name of Tenant Trade Sector % of Office Tenant Mix by Lettable Area lettable (as at 31 March 2015) area 14.5% Geostar Civil 19.4% Corporation Engineering & 23.1% 14.7% Construction NIPPO Construction 14.7% Industry 14.6% 13.7%
Slide 17: Shanghai Shama Century Park
Shanghai Shama Century Park Key Statistics Acquisition date 27 December 2013 Land use rights tenure ending 30 December 2072 on Total consideration (Rmb 524 million) – 30% interest Saleable / Leaseable GFA 49,357 (sq.m.) Valuation (Rmb million) – 100% * 2,437 Interest attributable to us (%) 30% Avera
Slide 18: Nanchang Fashion Mark
Nanchang Fashion Mark Joint-venture project with a Hong Kong-listed company Top Spring International Holdings Limited Location - Hong Gu Tan CBD, Nanchang City of the Jiangxi Province in the PRC, established about ten years ago Mixed-use development – residential, retail and office components
Slide 19: Nanchang Fashion Mark
Nanchang Fashion Mark Key Statistics % owned by Group 30% Site Area (sq.m.) 269,455 Construction start date May 2013 Expected completion date August 2018 Land cost (RMB million) 1,978 Total GFA (sq.m.) 1,030,475 Serviced Total Residential Retail Office apartments Saleable/Leasable GFA (sq.m.) 788,64
Slide 20: The Crest
The Crest Key Statistics % owned by Group 40% Site Area (sq.m.) 23,785 Tenure 99 years from 2012 Expected completion date Late 2016 Total saleable GFA (sq.m.) 50,854 Land cost (S$’m) 516.3 469 units condominium development comprising 4 blocks of 5-storey and 3 blocks of 24-storey residential build
Slide 21: Manchester – Milliners Wharf
Manchester – Milliners Wharf Key Statistics % owned by Group 25% Site Area 1.06 acres Tenure Freehold Expected sales launch Mid 2015 Expected completion date 1Q 2016 Estimated total saleable GFA 112,400 sqft The second phase of Milliners Wharf is situated in New Islington at the Eastern gateway to
Slide 22: Manchester – Middlewood Locks
Manchester – Middlewood Locks The 24 acre site at Middlewood Locks will provide a vibrant new neighbourhood of approximately 2,000 new homes and 750,000 sq ft of space for mixed commercial uses such as delis, restaurants, hotel, gym and nursery Middlewood Locks will offer modern apartments set w
Slide 23: Retail Operations
Retail Operations 22
Slide 24: 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 Centrepoint (New) Metro Pondok Indah Metro Pacific Place Metro Paragon Metro Plaza Senayan
Slide 25: Financial Highlights
Financial Highlights 24
Slide 26: FY2015 Results Highlights
FY2015 Results Highlights Property division’s improved performance mainly on recognition of Top Spring as associate company, net gain from asset disposal and maiden contribution from Nanchang project (residential) Property division’s profit before taxation rose 51.5% to S$157.7 million Top Spr
Slide 27: Financial Highlights
Financial Highlights Profit & Loss Accounts:- 4QFY15 4QFY14 FY2015 FY2014 (restated) Change (restated) Change (S$'000) (S$'000) (S$'000) (S$'000) Turnover 41,718 35,014 19.1% 145,826 139,179 4.8% Profit Before Tax 7,100 44,479 -84.0% 145,538 109,923 32.4% Comprising:- Operating etc 9,493 10,777 -11.
Slide 28: Full Year Financial Summary
Full Year Financial Summary Financial Ratios: FY2015 FY2014 (restated) Earnings per share after tax and non- 17.3 12.9 controlling interests (cents) Return on shareholders’ funds (%) 11.2 9.2 Return on total assets (%) 9.6 8.2 Number of issued shares (million) 828.0 828.0 Net asset value per share (
Slide 29: 4Q Revenue Breakdown (S$'m)
4Q Revenue Breakdown (S$’m) 50 2.6 40 2.6 Property revenue 30 Retail revenue 20 39.1 32.4 10 0 4QFY2014 4QFY2015 Group revenue up by 19.1% Q-o-Q in 4QFY2015 Higher turnover mainly contributed by new department store, Metro Centrepoint which commenced operations in 3QFY2015 Property rental inco
Slide 30: Full Year Revenue Breakdown (S$'m)
Full Year Revenue Breakdown (S$’m) 11.0 10.1 150 100 Property revenue 128.2 135.7 Retail revenue 50 0 FY2014 FY2015 Retail revenue increased by 5.8% y-o-y Retail sales was higher as the new Metro department store at The Centrepoint commenced operations in 3QFY2015 Property revenue Property r
Slide 31: Full Year Revenue Breakdown for Joint Ventures (S$'m)
Full Year Revenue Breakdown for Joint Ventures (S$’m) 80 15.5 60 Property Development 40 Property Rental 55.1 62.1 20 0 FY2014 FY2015 Property rental increased 12.7% y-o-y The Group accounted for an additional 18.4% share of EC Mall’s revenue from 3QFY2014 onwards Metro City Shanghai reported
Slide 32: Balance Sheet Highlights
Balance Sheet Highlights 2015 2014 Change As at 31 March (restated) (%) (S$'000) (S$'000) Property, Plant and Equipment 6,083 4,190 45.2% Investment Properties 168,948 160,797 5.1% Associates 411,414 199,084 106.7% Joint Ventures 450,526 488,991 -7.9% Other Non-current Assets 48,403 143,494 -66.3% C
Slide 33: Dividend Payout
Dividend Payout 60.0% Gross Cents per Share 54.1% 7.0 46.5% 50.0% 51.1% 45.9% 6.0 40.9% 40.0% 5.0 34.8% 31.8% 4.0 4.0 4.0 4.0 30.0% 20.3% 3.0 3.0 3.0 2.0 20.0% 1.0 2.0 10.0% 1.0 2.0 2.0 2.0 2.0 2.0 2.0 2.0 2.0 0.0 0 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015* Payout rate Ordinary Divide
Slide 34: Market Outlook
Market Outlook 33
Slide 35: Market Outlook: China
Market Outlook: China China’s overall growth sees slowdown - CBRE, Asia Pacific Real Estate Markets Outlook 2015 In China, economic growth is expected to slow to a more sustainable level of 7.0%. Its slowdown was mainly due to a decline in fixed asset and property investment as well as the ongoing
Slide 36: Market Outlook: Shanghai, Office
Market Outlook: Shanghai, Office Tighter Grade A vacancy rate in 1Q 2015 - Cushman & Wakefield, Marketbeat Office Snapshot - Shanghai, Q1 2015 Two new office buildings were completed in 1Q2015, adding a total of 82,102 sq m of Grade A office supply to Shanghai’s CBD; Overall Grade A vacancy rate
Slide 37: Market Outlook: Shanghai, Retail
Market Outlook: Shanghai, Retail Rental growth expected in prime shopping malls - CBRE, Marketbeat Retail Snapshot, Shanghai China, Q1 2015 In 2014, Shanghai posted annual retail sales growth of 8.7% to RMB 871.87 billion; Completion of Shanghai New World Daimaru Department Store (located at Nan
Slide 38: Market Outlook: Guangzhou, Office
Market Outlook: Guangzhou, Office Upward rental trend on limited supply of Grade A offices - Cushman & Wakefield, Marketbeat Office Snapshot - Guangzhou, Q1 2015 Grade A office stock in Guangzhou remained at 3.3 million sq m in Q1 2015, similar to same period last year; Overall average effective
Slide 39: Market Outlook: Nanchang, Mixed-use
Market Outlook: Nanchang, Mixed-use Nanchang: A tier-3 growth city - Jones Lang LaSalle, China60: From Fast Growth to Smart Growth, 2015 - PWC, Emerging Trends in Real Estate, Asia Pacific 2015 - PWC, 2015-16 Outlook for the Retail and Consumer Products Sector in Asia, February 2015 - Dezan Shira, C
Slide 40: Market Outlook: Manchester, Residential
Market Outlook: Manchester, Residential Cautious mood as growth moderates - JLL, UK Research, January 2015 - JLL, UK Research, November 2014 - JLL, Where Next in the UK ? Overall, the UK economy will be in far better shape over the next five years than it has been in recent years; Regional outpe
Slide 41: Market Outlook: Singapore, Residential
Market Outlook: Singapore, Residential Cautious mood as sales volume and prices slip - CBRE, Singapore MarketView, Q1 2015 - Jones Lang Lasalle, Singapore Property Market Monitor, April 2015 Both sales volume and prices have fallen since the introduction of Total Debt Servicing Ratio (“TDSR”) in J
Slide 42: Market Outlook: Singapore, Retail
Market Outlook: Singapore, Retail Singapore: Cautiously positive For 2015, the Ministry of Trade and Industry (MTI) maintains GDP growth forecast at 2.0 to 4.0 per cent(1); The wholesale & retail trade sector grew by 0.6 per cent year-on-year, moderating from the 2.1 per cent growth in the prece
Slide 43: Market Outlook: Indonesia, Retail
Market Outlook: Indonesia, Retail Indonesia: Remains resilient Indonesia is the largest economy in the Association of Southeast Asian Nations (ASEAN), and the 16th largest worldwide. The country has recorded strong economic growth over the past 6 years, and has made significant strides in reducing
Slide 44: Growth Strategies
Growth Strategies 43
Slide 45: Growth Strategies
Growth Strategies Property Development & Investment Retail Operations Moving to fuller spectrum of property Emphasis on: market by leveraging on: Addition of new retail outlets in Indonesia Rich Retail Experience Improve trading performance Strong Foothold and know-how in China Enhancing M
Slide 46: Growth Strategies: Property Development and Investment
Growth Strategies Property Development and Investment Covering a fuller spectrum of properties in key markets to broaden revenue stream and build sustained profitability Leverage on Rich Retail Experience Optimise tenant mix Continual asset enhancement of lettable space Improve efficiency of
Slide 47: Growth Strategies: Retail Operations
Growth Strategies Retail Operations Addition of new retail outlets Seek opportunities to expand footprint where suitable real estate opportunities presents themselves Continue to improve and expand the e-commerce and mobile channel Improve trading performance Intensify sales performance
Slide 48: Growth Strategies: Retail Operations
Growth Strategies Retail Operations Enhancing Customer Service Cross-store merchandising and selling; customers can buy, collect, exchange and return merchandise from any Metro store Provide Online and Offline Omni- channel shopping for customer convenient Implement Customer Relationships Ma
Slide 49: Outlook
Outlook 48
Slide 50: Outlook: Property Segment
Outlook Property Segment: Strategic alliances with partners to continue More China property projects expected with associate company Top Spring Maiden entry into the Manchester residential market in the UK with 25% interest in Fairbriar Real Estate Limited Broaden revenue stream and increase
Slide 51: Outlook: Retail Segment
Outlook Retail Segment: Seek to improve sales performance amidst challenging retail market conditions through more aggressive marketing and omni-channel selling. Continue to adopt fresh concepts to entice consumers Prudently identify new sites for store expansion, both departmental stores and
Slide 52: Thank You
Thank You 51