Metro Holdings Ltd · SGX:M01
Metro — FY2013 Earnings Presentation
53 slides from Metro's earnings presentation, May 29, 2013
Slide 1: Financial Statement and Related Announcement
FINANCIAL STATEMENT AND RELATED ANNOUNCEMENT Page 1 of 1 Print this page FY2013 Results Presentation * Financial Statement And Related Announcement * Asterisks denote mandatory information Name of Announcer * METRO HOLDINGS LIMITED Company Registration No. 197301792W Announcement submitted on behalf
Slide 2: FY2013 Results Presentation
METRO HOLDINGS LIMITED FY2013 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 We are… A property development and investment group, backed by an established retail track record with strong presence in China, Indonesia, Singapore and the Asia- Pacific region 3
Slide 5: Our Regional Presence
Our Regional Presence List of Properties • Metro City, Shanghai • Metro Tower, Shanghai • GIE Tower, Guangzhou • EC Mall, Beijing • Frontier Koishikawa Building, Tokyo List of Investments (HK Listed) • Top Spring International • Shui On Land Development properties (Under development with joint ventu
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$’m) (“sqm”) (100%) Metro City, 36 yr term 60% 15,342 39,630 103 87.5 238 (1) Shanghai from 1993 GIE Tower, 50 yr term 100% - 28,390 38
Slide 8: Portfolio Overview
Portfolio Overview Completed Investment Properties under Associated Companies: % owned by the Site Area Lettable Area Occupancy Rate Tenure Group (1) (“sqm”) (“sqm”) (%) (1) Tesco Lifespace, 40 yr term 10.7% 17,537 30,567 89.7 QinHuangDao from 2005 Tesco Lifespace, 40 yr term 10.7% 18,800 33,284 83.
Slide 9: Portfolio Overview
Portfolio Overview Investment Properties Under Development by Associated Companies: % owned by Lettable Area Scheduled Preleased TA Location Tenure Group (1) (sqm) (2) Opening signed Tesco Lifespace, Shenyang, 40 yr term 10.7% 38,822 August 2013 NA PRC from 2007 Shenyang (1) As at 31 March 2013 (2)
Slide 10: Portfolio Overview
Portfolio Overview Development Properties Under Development by an Associate / Jointly- controlled entity: Lettable / Expected % owned by Expected Location Saleable Area construction Group (1) completion date (sqm) (2) start date Nanchang, Nanchang Fashion Liaoning 30% 795,000 May 2013 December 2017
Slide 11: Property Investment
Property Investment Property Valuation (100%) as at 31 March 2013 and 2012: FY2013 FY2012 FY2013 FY2012 (%) (%) (Rmb’m) (Rmb’m) (S$’m) (S$’m) Metro City, Shanghai (1) 1,192 1,267 -5.9 238 253 -5.9 GIE Tower, Guangzhou (1) 485 475 +2.1 97 95 +2.1 Metro Tower, Shanghai (1) 911 895 +1.7 182 179 +1.7 EC
Slide 12: Occupancy Rate
Occupancy Rate FY2013 (%) FY2012 (%) Metro City, Shanghai 87.5 96.2 GIE Tower, Guangzhou 94.4 94.8 Metro Tower, Shanghai 98.8 99.7 EC Mall, Beijing 95.3 98.6 Frontier Koishikawa Building, Tokyo 85.3 73.2 11
Slide 13: Property Investment – Expiry Profile
Property Investment – Expiry Profile Expiry Profile by Gross Rental Income: 1H2014 (%) 2H2014 (%) Metro City, Shanghai 15.17 12.01 GIE Tower, Guangzhou 8.70 39.88 Metro Tower, Shanghai 21.01 1.60 EC Mall, Beijing 17.2 5.9 Frontier Koishikawa Building, - 56.0 Tokyo 12
Slide 14: Metro City, Shanghai
Metro City, Shanghai Top 10 Tenants: Occupancy Rate: 87.5% Name of Trade Sector % of total Tenant lettable area Buynow Computer Electronics & IT Retail Tenant Mix by Lettable Area World 16.02% (as at 31 March 2013) Physical Fitness & Leisure & Entertainment/ 10.18% Beauty Centre Sport & Fitness Koda
Slide 15: Metro Tower, Shanghai
Metro Tower, Shanghai Top 10 Tenants: Occupancy Rate: 98.8% Name of Trade Sector % of total Tenant lettable area Office Tenant Mix by Lettable Area Exxon Mobil Petroleum & Chemicals 18.70% (as at 31 March 2013) Swatch Group Consumer Products 18.60% Energy Source Others 10.61% KFC F&B 8.49% 20.6% Piz
Slide 16: GIE Tower, Guangzhou
GIE Tower, Guangzhou Occupancy Rate: 94.4% Top 10 Tenants: Name of Trade Sector % of Tenant lettable Office Tenant Mix by Lettable Area area (as at 31 March 2013) Yu Cai Restaurant F&B 12.68% Ericsson Electronics and IT 11.89% Guang Dong Banking, Insurance & 16.3% 15.9% Development Financial Service
Slide 17: ECMall, Beijing
ECMall, Beijing Occupancy Rate: 95.3% Top 10 Tenants: Name of Trade Sector % of Retail Tenant Mix by Lettable Area Tenant lettable area (as at 31 March 2013) Golden Jaguar F&B/Food Court 17.94% C&A Fashion & Shoes 5.35% Only/Vero/Moda/ Fashion & Shoes 0.5% Jack&Jones/ 4.42% 1.0% Selected 35.6% H&M F
Slide 18: Frontier Koishikawa Building, Tokyo
Frontier Koishikawa Building, Tokyo Occupancy Rate: 85.3% Top 10 Tenants: Name of Tenant Trade Sector % of Office Tenant Mix by Lettable Area lettable (as at 31 March 2013) area Geostar Civil Corporation Engineering & 23.09% Construction 14.5% 19.5% Shisyutsuhutan-koi Government Tanto-kan Somu- Offi
Slide 19: Tesco Projects, China
Tesco 1 Projects, China Ownership Split: Metro Holdings – 10.7%, Tesco Plc – 50.0%, InfraRed NF (FKA HSBC NF) / Nan Fung – 35.7%, Private Bankers – 3.6% Joint investment with Tesco Plc, InfraRed NF China Real Estate Fund (FKA HSBC NF China Real Estate Fund) / Nan Fung and HSBC private banking cl
Slide 20: Tesco Projects, China
Tesco 2 Projects, China Ownership Split: Metro Holdings – 10.7%, Tesco Plc – 50.0%, InfraRed NF (FKA HSBC NF) – 39.3% Joint investment with Tesco Plc and InfraRed NF China Real Estate Fund (FKA HSBC NF China Real Estate Fund) in Feb 2011 Fuzhou Xiamen Shenyang 4-storey & 2-basement retail 3-
Slide 21: Nanchang Fashion Mark
Nanchang Fashion Mark Joint-venture project with a Hong Kong-listed company Top Spring International Holdings Limited Metro holds effective 30% stake in the project Mixed-use development - residential and office components for sale; and retail component to hold as investment property Locatio
Slide 22: Nanchang Fashion Mark
Nanchang Fashion Mark Key Statistics Site Area (sq.m.) 269,455 Expected construction start date May 2013 Expected completion date December 2017 Land cost (RMB million) 1,978 Interest attributable to us (%) 30% Total GFA (sq.m.) 978,760 Total Residential Retail Other Saleable/Leasable GFA (sq.m.) 795
Slide 23: Prince Charles Crescent
Prince Charles Crescent Key Statistics Site Area (sq.m.) 23,785 Tenure 99 years Expected construction start date June 2013 Expected completion date Sept 2017 Total GFA (sq.m.) 49,950 Estimated total saleable GFA (sq.m.) 46,500 Land cost (S$’m) 516.3 Interest attributable to us (%) 40% 473 units co
Slide 24: Retail Operations
Retail Operations 23
Slide 25: 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 Plaza Senayan Metro Sengkang Metro Band
Slide 26: Retail Operations
Retail Operations Senior Executive appointments announced on 7 Sep 2012, to bring fresh perspectives for further growth: Managing Director Mrs Wong Sioe Hong appointed as Executive Chairman 40 years of industry experience Retail industry veteran Mr David Tang appointed as Chief Executive Offic
Slide 27: Financial Highlights
Financial Highlights 26
Slide 28: FY2013 Results Highlights
FY2013 Results Highlights Property division turnover contracts marginally following divestment of Metro City Beijing Notwithstanding the impact of disposal of Metro City Beijing, the Group recorded higher rental income from higher occupancy at three main properties – Metro City Shanghai, Metro T
Slide 29: Financial Highlights
Financial Highlights Profit & Loss Accounts: 4QFY13 4QFY12 Change FY2013 FY2012 Change (S$’000) (S$’000) (%) (S$’000) (S$’000) (%) Turnover 47,631 48,148 -1.1 187,120 186,995 +0.1 Profit Before Tax 20,505 95,401 -78.5 82,049 115,270 -28.8 Less: Gain on disposal of Metro City Beijing (net) - 92,400 n
Slide 30: Full Year Financial Summary
Full Year Financial Summary Financial Ratios: FY2013 FY2012 Earnings per share after tax and non- 7.8 11.3 controlling interests (cents) Return on shareholders’ funds (%) 5.74 8.64 Return on total assets (%) 4.34 6.40 Number of issued shares (million) 828.0 828.0 Net asset value per share (cents) 13
Slide 31: 4Q Revenue Breakdown
4Q Revenue Breakdown 50 40 17.4 15.1 Property revenue 30 Retail revenue 20 30.7 32.5 10 0 4QFY2012 4QFY2013 Group turnover down marginally by 1% in 4QFY2013 Higher sales of the Retail division in 4QFY2013 substantially offset the 13.2% decline in Property revenue due to the disposal of Metro Cit
Slide 32: Full Year Revenue Breakdown
Full Year Revenue Breakdown 200 67.0 58.3 150 Property revenue 100 Retail revenue 120.0 128.8 50 0 FY2012 FY2013 Property revenue fell 12.9% y-o-y Lower revenue for FY2013 due to the disposal of Metro City Beijing in FY2012 Higher rental income from Metro City Shanghai, Metro Tower Shanghai an
Slide 33: Balance Sheet Highlights
Balance Sheet Highlights As at 31 March 2013 As at 31 March 2012 Change (S$’000) (S$’000) (%) Property, plant and 6,603 16,490 -60.0 equipment Investment Properties 533,871 550,194 -3.0 Other Non-current Assets 252,324 168,282 +49.9 Current Assets 754,177 702,318 +7.4 Total Assets 1,546,975 1,437,28
Slide 34: Dividend Payout
Dividend Payout Gross Cents per Share 60.0% 54.1% 7.0 50.0% 45.9% 51.1% 40.9% 6.0 37.7% 40.0% 5.0 31.8% 4.0 4.0 30.0% 3.0 3.0 20.3% 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 0.0 0 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 Payout rate Ordinary Dividend Special Dividend 33
Slide 35: Market Outlook
Market Outlook 34
Slide 36: Market Outlook: China
Market Outlook: China China has slowed but growth is still solid… China’s 1Q 2013 GDP result of 7.7% y-o-y (7.9% in 4Q 2012) was slightly below expectations, with industrial production and retail sales slowing during the first quarter. House price curbs announced in early March look benign as resi
Slide 37: Market Outlook: Shanghai, Office
Market Outlook: Shanghai, Office Growth of rents varies across submarkets, overall rentals stayed stable - Cushman & Wakefield, Marketbeat Office Snapshot, Shanghai Q1 2013 After a relatively high transaction volume period in fourth quarter of 2012, submarket rental movements showed varied growth
Slide 38: Market Outlook: Shanghai, Retail
Market Outlook: Shanghai, Retail Prime retail net asking rents on the rise - Cushman & Wakefield, Marketbeat Retail Snapshot, Shanghai Q1 2013 Notable trend of Shanghai’s retail venues being repositioned into high-end facilities of world-class quality, expected to stimulate Shanghai’s retail sales
Slide 39: Market Outlook: Beijing, Retail
Market Outlook: Beijing, Retail Prime retail rent increased slightly - Cushman & Wakefield, Marketbeat retail snapshot, Q1 2013 Beijing’s retail market demand remained active over the first quarter of 2013, despite a slight increase in prime retail rents; Rents in submarket s kept stable, averag
Slide 40: Market Outlook: Guangzhou, Office
Market Outlook: Guangzhou, Office Moderate rental growth as new supply enters the market - DTZ Research, Guangzhou Q1 2013 City-wide rent grew 0.7% quarter-on-quarter, reaching RMB166.3/sqm/month; City-wide availability ratio rose by 1.11% quarter-on-quarter to 9.68% (due to new launches). Tot
Slide 41: Market Outlook: Nanchang, Mixed-use
Market Outlook: Nanchang, Mixed-use Nanchang: An emerging Tier-3 city; opportunities in office, retail and residential - Jones Lang LaSalle, China50 Fifty Real Estate Markets that Matter, Mar 2012 - Read Daily News, ‘Nanchang, the property market a year-on-year volume and price go in January’, 31 Ja
Slide 42: Market Outlook: Singapore, Residential
Market Outlook: Singapore, Residential Cooling measures expected to affect Prime residential market , though liquidity remains - Asia Pacific Property Digest, Jones Lang LaSalle, Q1 2013 - CB Richard Ellis, Singapore MarketView, Q1 2013 - Today, ‘Property cooling measures yielding results’, 22 May 2
Slide 43: Market Outlook: Retail, Singapore
Market Outlook: Retail, Singapore Singapore: Cautiously positive For 2013, the Ministry of Trade and Industry (MTI) is expecting growth of between 1 and 3 percent; It said that growth in the global economy is likely to remain subdued, despite macroeconomic conditions stabilising in recent months
Slide 44: Market Outlook: Retail, Indonesia
Market Outlook: Retail, Indonesia Indonesia: Remains resilient Indonesia’s economy and business prospects in various sectors remain bright in 2013; Indonesia’s economic growth slowed slightly to 6.0% y-o-y in 1Q13 (6.1% y-o-y in 4Q12), due mainly to more subdued exports. GI is forecasting steady
Slide 45: Growth Strategies
Growth Strategies 44
Slide 46: Growth Strategies
Growth Strategies Property Development Retail Operations & Investment Continue to prudently Emphasis on: leverage on: Addition of new retail outlets Rich Retail Experience Strong Foothold and Improve trading performance Know-how in China Selection Enhance Merchandise Offering Strategic P
Slide 47: Growth Strategies
Growth Strategies Property Development and Investment Leverage on Rich Retail Experience Optimise tenant mix Continual enhancement of lettable space Improve efficiency of mall management Capitalise on Strong Foothold in the Asia-Pacific region Opportunistic search for new projects Main
Slide 48: Growth Strategies
Growth Strategies Retail Operations Addition of new retail outlets Open more outlets where suitable real estate opportunities presents themselves Add Monsoon Accessorize outlets and specialties shops Improve trading performance Intensify sales performance Improve gross margins Leverage
Slide 49: Growth Strategies
Growth Strategies Retail Operations Enhancing Customer Service Cross-store merchandising and selling; customers can buy merchandise from any Metro store Implement upgrade to Customer Relationships Management (CRM) system Adopt New Marketing Platform Adopt new internet (online) technology t
Slide 50: Outlook
Outlook 49
Slide 51: Outlook
Outlook Property Segment: Asset enhancement and refurbishment exercise at Metro City Shanghai has commenced Costs of Property Division to be impacted in the short-term AEI expected to be completed in 2HFY2014, with future rental yield and income to improve Residential sale launches in FY2014
Slide 52: Outlook
Outlook Retail Segment: Seek to improve sales performance amidst challenging retail market conditions Competitive trading scene Rising operational costs Tight labour market Continue to identify new sites for store expansion, both departmental stores and specialty shops New store, Metro S
Slide 53: Thank You
Thank You Bye