UOL Group Limited · SGX:U14
UOL — CLSA Investors Meeting 2008
45 slides from UOL's conference presentation, Aug 20, 2008
Slide 1: CLSA Investors Meeting
CLSA Investors Meeting 20 August 2008
Slide 2: Content
CONTENT • Company Profile • Results Overview • Financial Performance • Highlights • Earnings Visibility • Outlook • Q&A Presented on 20 August 2008
Slide 3: Company Profile
COMPANY PROFILE Presented on 20 August 2008
Slide 4: Company Profile
COMPANY PROFILE • Founded in 1963, listed on SES in 1964 • Diversified portfolio in residential, hospitality, office & retail sectors • 3 Core Businesses - Property Development : Residential units for sale - Property Investments : Office and retail properties - Hotel Operations : Hotels and serviced
Slide 5: Residential Strategy
RESIDENTIAL STRATEGY • Creating niche markets (Luxury-end, High-end, Inner city, Mid-end and Suburban) • Realisable land bank - Total asset value > $674 mil - Saleable area > Approx. 170,021 sq m (Local) > Approx. 167,895 sq m (Overseas) Nassim Park Residences Duchess Residences Presented on 20 Augu
Slide 6: Commercial Strategy
COMMERCIAL STRATEGY • Long-term holdings of office and retail properties for recurring income. - Total asset value > $2.2b - Total area > 166,000 sq m Local 141,543 sq m Overseas 25,430 sq m • Asset enhancement for maximum yield and building brand attributes. • Focus on prime location in high growth
Slide 7: Hospitality Strategy
HOSPITALITY STRATEGY • Brand Expansion through HMA - Pan Pacific brand, acquired in 2007 (16 hotels/ serviced suites, 4,894 rooms) - Parkroyal brand, acquired in 2002 (9 hotels/ serviced residences, 2,866 rooms) • Asset enhancement to maximise yield • Strategic acquisition in gateway cities to enhan
Slide 8: Hospitality Strategy: Geographical Presence
HOSPITALITY STRATEGY Geographical Presence Singapore, USA, Canada, China, Australia, Japan, Vietnam, Malaysia, Thailand, Indonesia, Philippines, Bangladesh & Myanmar Presented on 20 August 2008
Slide 9: Underlying Strengths
UNDERLYING STRENGTHS • Robust business model - Targeted portfolio in Property Development, Property Investments and Hotel Operations - Steady recurring income, sizeable development landbank - Strong gearing capacity • Multi-disciplinary competencies - Development know-how - Mall management skills -
Slide 10: Results Overview
RESULTS OVERVIEW Presented on 20 August 2008
Slide 11: Results Overview – 2Q2008
RESULTS OVERVIEW – 2Q2008 • Group Revenue up 4% to $209.3mil. • Key Revenue contributors - Increased revenue from hotel operations in Singapore, Australia and Vietnam - Higher average rental and occupancy rates from Group’s investment properties in Singapore - Progressive recognition of property inc
Slide 12: Financial Performance
FINANCIAL PERFORMANCE Presented on 20 August 2008
Slide 13: Financial Performance: Quarter on Quarter Comparison
FINANCIAL PERFORMANCE Quarter on Quarter Comparison 2Q2008 2Q2007 Change Revenue ($m) 209.3 201.6 + 3.8% Profit before fair value & 101.1 91.2 + 10.9% other gains ($m) Profit before Tax ($m) 168.4 365.6 - 53.9%* Attributable Net Profit ($m) 145.0 286.3 - 49.4% Earnings per Share 18.2 ¢ 36.0 ¢ - 49.4
Slide 14: Financial Performance: First Half Comparison
FINANCIAL PERFORMANCE First Half Comparison 1H2008 1H 2007 Change Revenue ($m) 371.1 347.3 + 6.9% Profit before fair value & 161.2 137.4 + 17.3% other gains ($m) Profit before Tax ($m) 228.5 450.0 - 49.2%* Attributable Net Profit ($m) 187.8 362.3 - 48.2% Earnings per Share 23.6¢ 45.6¢ - 48.2% Net As
Slide 15: Revenue Comparison by Business Segment 2Q
FINANCIAL PERFORMANCE Revenue Comparison by Business Segment 2Q (in $million) + 17% + 3% - 40% + 23% + 132% Presented on 20 August 2008
Slide 16: Revenue Comparison by Business Segment 1H
FINANCIAL PERFORMANCE Revenue Comparison by Business Segment 1H (in $million) + 16% - 1% + 20% - 40% + 143% Presented on 20 August 2008
Slide 17: Revenue Contribution by Business Segment 1H
FINANCIAL PERFORMANCE Revenue Contribution by Business Segment 1H 1H'08 Revenue by business 1H'07 Revenue by business Investments Management 6% Management services services 3% Investments Property 2% Property 11% development development 29% 31% Hotel Property Hotel Property operations investments op
Slide 18: Revenue Contribution by Geographical Segment 1H
FINANCIAL PERFORMANCE Revenue Contribution by Geographical Segment 1H 1H'08 Revenue by country 1H'07 Revenue by country Myanmar China Myanmar Malaysia Others 1% 6% China 1% 1% Malaysia 6% 6% 5% Vietnam 5% Vietnam 5% Australia 15% Australia 13% Singapore Singapore 66% 70% Presented on 20 August 2008
Slide 19: Operating Profit by Business Segment
FINANCIAL PERFORMANCE Operating Profit by Business Segment 1H 1H'08 Profit by business 1H'07 Profit by business Management Property services Investments Property Investments development 2% 18% development 31% 22% 24% Property Hotel Property investments operations investments Hotel 26% 28% 28% operat
Slide 20: Operating Profit by Geographical Segment 1H
FINANCIAL PERFORMANCE Operating Profit by Geographical Segment 1H 1H'08 Profit by country 1H'07 Profit by country China Myanmar Malaysia 0% Others Malaysia China 3% Vietnam 1% 1% 2% 3% Myanmar Vietnam 6% 0% Australia 5% Australia 6% 9% Singapore Singapore 80% 84% Presented on 20 August 2008
Slide 21: Local vs Overseas Contribution 1H
FINANCIAL PERFORMANCE Local vs Overseas Contribution 1H Revenue Segment Profit Total Asset Value 1H2008 1H2007 1H2008 1H2007 1H2008 1H2007 $m % $m % $m % $m % $m % $m % Local 246.0 66.3 242.1 69.7 104.9 80.2 104.2 84.5 5,772.1 88.0 4,714.9 88.6 Overseas 125.1 33.7 105.2 30.3 26.0 19.8 19.1 15.5 788.
Slide 22: Capital Management
FINANCIAL PERFORMANCE Capital Management 1H2008 1H 2007 Gearing Ratio 0.36 0.16 Interest Cover 8.8x 8.6x Average Borrowing Cost 2.40% 3.71% (for S$ borrowings as at 30 June) Presented on 20 August 2008
Slide 23: Highlights
HIGHLIGHTS Presented on 20 August 2008
Slide 24: Property Development: Simei Street Site
PROPERTY DEVELOPMENT Acquired site at Simei Street 4 in Jan 2008 • Site area 32,310 sq m • GFA 74,084 sq m, approx. 646 units. • 60% Stake Presented on 20 August 2008
Slide 25: Property Development: Residential Launches 1H2008
PROPERTY DEVELOPMENT Residential Launches in 1H2008 Panorama, KL Nassim Park Residences Breeze by the East • Located at Persiaran • Super-luxury development • Located along Upper East Coast Road Hampshire opposite KLCC • 100 exclusive apartments • 88 unit boutique development • 223 apartments • Laun
Slide 26: Property Investments: Tenancy Renewal 1H2008
PROPERTY INVESTMENTS Tenancy Renewal 1H2008 % of Leasable % Change in Overall Space Average Rent Offices Novena Square 9.6 +20 United Square 7.6 +35 Odeon Towers 1.7 +30 Faber House 3.4 +60 Shopping Malls Velocity 4.5 +6 United Square 6.1 +9 Presented on 20 August 2008
Slide 27: Hospitality: Pan Pacific
HOSPITALITY Pan Pacific Pan Pacific Serviced Suites, Singapore • Launched 5-star flagship property in April 2008 • Located next to Somerset MRT, in the heart of Orchard Road • 126 suites targeting high-end business travelers • Offers differentiated stay experience of “home advantage with local conne
Slide 28: Hospitality: Parkroyal
HOSPITALITY Parkroyal Parkroyal Chengdu • First hotel management contract in China • Landmark project at Nanmen, part of the prime Wuhou district • 361-room hotel scheduled to open in 1st half of 2009 Parkroyal Saigon • Brand entry into Vietnam • Conveniently located 2km from the international airpo
Slide 29: Awards
AWARDS Newton Suites •Top 5 finalists of International Highrise Award •Shortlisted for inaugural World Architecture Festival Awards •Cityscape Asia Real Estate Awards 2008 Best Developer - Residential (Built) • Emporis Skyscraper Awards 2007 – Silver Award Pan Pacific Kuala Lumpur International Airp
Slide 30: Awards: International Highrise Award Finalists
AWARDS Top 5 finalists - International Highrise Award by City of Frankfurt am Main and the DekaBank Results announcement in Frankfurt on 14 November 2008 Newton Suites, Hearst Tower, New York Times Building, Television Cultural Centre, Missing Matrix Building, Singapore New York New York Beijing Seo
Slide 31: Earnings Visibility
EARNINGS VISIBILITY Presented on 20 August 2008
Slide 32: Profit Recognition of Sold Projects
PROFIT RECOGNITION OF SOLD PROJECTS Launched Projects (Only for pre-TOP) Project Name/Site No. of Saleable Area % Sold % % Complete Units (sq m) (as at 30.06.08) Owned (as at 30.06.08) Southbank 273 24,161 100% 70% 28% Regency Suites 104 11,371 100% 80% 70% The Regency at Tiong Bahru 158 18,201 100%
Slide 33: Singapore Landbank
SINGAPORE LANDBANK Project Name/Location Tenure Site Area Saleable No. of % of Land (sq m) Area Units Owned (sq m) ‘Green Meadows’ at Upper FH 42,828 63,585 424 100% Thomson (approx.) ‘Spottiswoode Park/ FH 9,531 28,352 231 100% Oakswood Heights’ at (approx.) Spottiswoode Simei Street 4 99 32,210 78
Slide 34: Overseas Landbank
OVERSEAS LANDBANK Project Name/Location Site Area Saleable Area No. of % Owned (sq m) (sq m) Units Site at Jalan Conlay 15,989 111,925 650 60% - Kuala Lumpur (approx.) Hai He Huang Guan 22,895 55,970 535 90% - Tianjin (approx.) Total 38,884 167,895 1,185 Presented on 20 August 2008
Slide 35: Earnings Visibility – Commercial
EARNINGS VISIBILITY – COMMERCIAL Properties Net Lettable Area (sq m) Singapore Novena Square 53,758 United Square 45,898 The Plaza 18,597 Odeon Towers 18,290 Faber House 3,866 Eunos Warehouse Complex 1,134 Total 141,543 Overseas Hai He Huang Guan, Tianjin 25,430 Grand Total 166,973 Presented on 20 A
Slide 36: Hospitality: Room Inventory
HOSPITALITY Room Inventory No. of Hotels/ Serviced Apartments No. of Rooms (Approx.) Pan Pacific Owned - Existing 2 332 - Upcoming 2 673 Managed - Existing 11 3,742 - Upcoming 1 147 Sub Total 16 4,894 Parkroyal Owned - Existing 7 2,218 - Upcoming 1 287 Managed - Upcoming 1 361 Sub Total 9 2,866 Othe
Slide 37: Key Pipeline Projects: Hotel Development, Singapore
KEY PIPELINE PROJECTS Hotel Development, Singapore • Located at Upper Pickering Street • 16-storey iconic building designed by Woha Architects • Located within the CBD along Upper Pickering Street • 331 room hotel and 96 units of SOHO Presented on 20 August 2008
Slide 38: Key Pipeline Projects: Mixed Development in China
KEY PIPELINE PROJECTS Mixed Development in China Tianjin, Huang Guan Hai He Comprises • 4 blocks of residential apartments (55,970 sq m) • 30- storey 5-star hotel, (38,600 sq m) • Two 13-storey office towers (15,200 sq m) • Retail podium (10,230 sq m) • Total 120,000 sq m • 90% stake Presented on 20
Slide 39: Key Pipeline Projects: Residential Development, Malaysia
KEY PIPELINE PROJECTS Residential Development, Malaysia Jalan Conlay, Kuala Lumpur • Prime city centre location near KLCC and Bukit Bintang shopping belt. • Approximately 650-units luxury apartments • 60% stake Presented on 20 August 2008
Slide 40: Outlook
OUTLOOK Presented on 20 August 2008
Slide 41: Challenges
CHALLENGES • Global financial turmoil - Credit crunch - Rising cost of capital • High energy/material costs - Runaway inflation - Profit erosion • Economic slowdown - Recessionary threats - Weakening sentiment Presented on 20 August 2008
Slide 42: Moving Forward
MOVING FORWARD • Preservation of cashflow - Cash management - Yield management - Cost management • Capital deployment - Selective overseas expansion - Strategic acquisition with income plus value upside - Rebalancing revenue drivers • Corporate development - Brand building - Talent management - Stra
Slide 43: Disclaimer
DISCLAIMER This presentation may contain forward-looking statements or financial information. Such forward-looking statements and financial information may involve known and unknown risks, uncertainties, assumptions and other factors which may cause the actual results, performance or achievements of
Slide 44: Q&A
Q&A Presented on 20 August 2008
Slide 45: Thank You
THANK YOU Presented on 20 August 2008