Metro Holdings Ltd · SGX:M01
Metro — FY2014 Earnings Presentation
52 slides from Metro's earnings presentation, May 28, 2014
Slide 1: SGX Financial Statements and Related Announcement: Full Yearly Results
Financial Statements and Related Announcement::Full Yearly Results Issuer & Securities Issuer/ Manager METRO HOLDINGS LTD Securities METRO HOLDINGS LIMITED - SG1I11878499 - M01 Announcement Details Announcement Title Financial Statements and Related Announcement Date & Time of Broadcast 28-May-2014
Slide 2: Metro Holdings Limited FY2014 Results Presentation
METRO HOLDINGS LIMITED FY2014 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 and Singapore 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 • Shama Century Park, Shanghai (Associate) List of Investments (HK Listed) • Top Spring International (Property Developer) • Shui On
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$’m) (“sqm”) (100%) Metro City, 36 yr term 60% 15,434 39,205 118 90.1 229 (1) Shanghai from 1993 GIE Tower, 50 yr term 100% - 28,390 33
Slide 8: Portfolio Overview
Portfolio Overview Completed Investment Properties under Associated Companies: % owned by the Site Area Lettable Area Occupancy Rate Tenure Group (1) (“sqm”) (“sqm”) (%) (1) Tesco Lifespace, 40 yr term 10.7% 17,537 33,123 89.8 QinHuangDao from 2005 Tesco Lifespace, 40 yr term 10.7% 18,800 36,619 81.
Slide 9: Portfolio Overview
Portfolio Overview Development Properties Under Development by an Associate / Jointly- controlled entity: Leasable/ % owned by Expected sale Expected Location Saleable Area Group (1) launch completion date (sqm) (2) Nanchang, Nanchang Fashion Jiangxi 30% 830,323 N.A. (*) December 2017 Mark Province,
Slide 10: Property Investment
Property Investment Property Valuation (100%) as at 31 March 2014 and 2013: FY2014 FY2013 FY2014 FY2013 (%) (%) (Rmb’m) (Rmb’m) (S$’m) (S$’m) Metro City, Shanghai (1) 1,129 1,192 -5.3 229 238 -3.8 GIE Tower, Guangzhou (1) 487 485 +0.4 99 97 +2.1 Metro Tower, Shanghai (1) 930 911 +2.1 189 182 +3.8 EC
Slide 11: Occupancy Rate
Occupancy Rate FY2014 (%) FY2013 (%) Metro City, Shanghai 90.1 87.5 GIE Tower, Guangzhou 79.1 94.4 Metro Tower, Shanghai 96.0 98.8 EC Mall, Beijing 96.3 95.3 Frontier Koishikawa Building, Tokyo 100.0 85.3 10
Slide 12: Property Investment – Expiry Profile
Property Investment – Expiry Profile Expiry Profile by Gross Rental Income: 1H2015 (%) 2H2015 (%) Metro City, Shanghai 13.03 6.21 GIE Tower, Guangzhou 17.57 11.62 Metro Tower, Shanghai 3.76 9.39 EC Mall, Beijing 8.96 8.26 Frontier Koishikawa Building, 5.82 34.50 Tokyo 11
Slide 13: Metro City, Shanghai
Metro City, Shanghai Top 10 Tenants: Occupancy Rate: 90.1% Name of Trade Sector % of total Tenant lettable area Buynow Computer Electronics & IT Retail Tenant Mix by Lettable Area World 16.20% (as at 31 March 2014) Physical Fitness & Leisure & Entertainment/ Sport & 8.36% Beauty Centre Fitness Food
Slide 14: Metro Tower, Shanghai
Metro Tower, Shanghai Top 10 Tenants: Occupancy Rate: 96.0% Name of Trade Sector % of total Tenant lettable area Office Tenant Mix by Lettable Area Exxon Mobil Petroleum & Chemicals 18.56% (as at 31 March 2014) Swatch Group Consumer Products 16.43% Energy Source Others 10.54% KFC F&B 8.43% 21.3% Piz
Slide 15: GIE Tower, Guangzhou
GIE Tower, Guangzhou Occupancy Rate: 79.1% Top 10 Tenants: Name of Tenant Trade Sector % of Office Tenant Mix by Lettable Area lettable area (as at 31 March 2014) Yu Cai Restaurant F&B 14.17% Abbott Laboratories Pharmaceutical 11.44% Guang Dong Banking, Insurance & 10.24% 17.8% Development Bank Fina
Slide 16: ECMall, Beijing
ECMall, Beijing Occupancy Rate: 96.3% Top 10 Tenants: Name of Trade Sector % of Retail Tenant Mix by Lettable Area Tenant lettable area (as at 31 March 2014) Golden Jaguar F&B/Food Court 17.92% C&A Fashion & Shoes 5.34% Only/Vero/Moda/ Fashion & Shoes 0.3% Jack&Jones/ 4.42% 1.1% Selected 39.2% H&M F
Slide 17: 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 2014) area 14.5% Geostar Civil 19.5% Corporation Engineering & 23.09% 14.7% Construction Shisyutsuhutan-koi Government Tanto-kan Somu-
Slide 18: 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% * 2,400 Interest attributable to us (%) 30% Avera
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; retail shopping mall and serviced apartment to hold as invest
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 Development cost incurred as at 289 31 December 2013 (RMB million) Interest attributable to us (%) 30% Total GFA (sq.m.) 1,030
Slide 23: The Crest
The Crest Key Statistics Site Area (sq.m.) 23,785 Tenure 99 years Expected sales launch Mid 2014 Expected completion date Late 2016 Total GFA (sq.m.) 49,950 Estimated total saleable GFA (sq.m.) 50,860 Land cost (S$’m) 516.3 Interest attributable to us (%) 40% 469 units condominium development comp
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 Pacific Place Metro Woodlands Metro Plaza Senayan Metro
Slide 26: Financial Highlights
Financial Highlights 25
Slide 27: FY2014 Results Highlights
FY2014 Results Highlights Property division improved performance following higher valuations of investment properties and one-off gains Property division’s profit before taxation rose 60.7% to S$119.3 million Increased valuation of investment properties, including associates, with fair value g
Slide 28: Financial Highlights
Financial Highlights Profit & Loss Accounts: 4QFY14 4QFY13 FY2014 FY2013 Change Change (S$’000) (S$’000) (S$’000) (S$’000) Turnover 49,698 47,631 4.3% 194,266 187,120 3.8% Profit Before Tax 53,764 20,505 162.2% 124,820 82,049 52.1% Comprising: Operating etc 12,503 17,238 -27.5% 29,163 40,702 -28.3%
Slide 29: Full Year Financial Summary
Full Year Financial Summary Financial Ratios: FY2014 FY2013 Earnings per share after tax and non- 12.9 7.8 controlling interests (cents) Return on shareholders’ funds (%) 9.18 5.74 Return on total assets (%) 6.70 4.34 Number of issued shares (million) 828.0 828.0 Net asset value per share (S$) 1.43
Slide 30: 4Q Revenue Breakdown (S$'m)
4Q Revenue Breakdown (S$’m) 50 40 15.1 17.3 Property revenue 30 Retail revenue 20 32.5 32.4 10 0 4QFY2013 4QFY2014 Group turnover up by 4.3% Q-o-Q in 4QFY2014 Higher turnover in 4QFY2014 Q-o-Q contributed by higher rental income arising on the additional 18.4% share of EC Mall’s rental The ave
Slide 31: Full Year Revenue Breakdown (S$'m)
Full Year Revenue Breakdown (S$’m) 100% 58.3 66.1 80% Property revenue 60% Retail revenue 40% 128.8 128.2 20% 0% FY2013 FY2014 Property revenue increased 13.4% y-o-y The Group accounted for an additional 18.4% share of EC Mall’s revenue from 3QFY2014 onwards PRC investment properties reporting
Slide 32: Balance Sheet Highlights
Balance Sheet Highlights As at 31 March 2014 As at 31 March 2013 Change (S$’000) (S$’000) (%) Property, plant and 4,818 6,603 -27.0 equipment Investment Properties 653,918 533,871 +22.5 Other Non-current Assets 343,038 252,324 +36.0 Current Assets 642,816 754,177 -14.8 Total Assets 1,644,590 1,546,9
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% 37.7% 40.0% 5.0 31.8% 4.0 4.0 4.0 30.0% 20.3% 3.0 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 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014* Payout rate Ordinary Divide
Slide 34: Market Outlook
Market Outlook 33
Slide 35: Market Outlook: China
Market Outlook: China China’s growth sees slowdown - CBRE, China MarketView, 2014 China’s 1Q2014 GDP growth of 7.4% y-o-y (7.7% in 1Q 2013) was slightly above expectations. However, its slowdown was mainly due to a tighter monetary policy, weaker growth in industrial production (IP) and fixed asse
Slide 36: Market Outlook: Shanghai, Office
Market Outlook: Shanghai, Office Average rent remained flat - CBRE, China MarketView, 2014 A total of 108,342 sq m was added to the market upon recent completion of two projects; Overall market vacancy rate decreasing 0.8 ppts to 6.8%; The average asking rent remained flat at RMB 264.3/sqm/mon
Slide 37: Market Outlook: Shanghai, Retail
Market Outlook: Shanghai, Retail No new supply in 1Q14 - CBRE, MarketView, Q1 2014 With no new supply during the first quarter, the overall vacancy rate dropped by 0.1 ppt to 5.5%; Rents recorded an average growth of 1.6%, mainly attributable to mid- to high-end malls in Xujiahui and Nanjing Eas
Slide 38: Market Outlook: Beijing, Retail
Market Outlook: Beijing, Retail Overall vacancy rate faces slow decline - CBRE, China MarketView, Q1 2014 With no fresh supply during 1Q2014, overall vacancy rate dropped by 0.4 ppt q-o-q to 10.8%; Beijing witnessed stable rent appreciation of 2.4% q-o-q; In the next six months, over 160,000 s
Slide 39: Market Outlook: Guangzhou, Office
Market Outlook: Guangzhou, Office Moderate rental growth - DTZ Research, Guangzhou Q1 2014 Grade A office stock in Guangzhou remained at 3.3 million sq m in Q1 2014; Overall rent grew 0.9% q-o-q, reaching RMB168.1/sqm/month; With no new supply in Q1 2014, the availability ratio in Guangzhou dr
Slide 40: Market Outlook: Nanchang, Mixed-use
Market Outlook: Nanchang, Mixed-use Nanchang: An emerging Tier-3 city - Cushman & Wakefield Research, December 2013 - Spring Professional , Property in Asia 2014, 2014 - Dezan Shira, Changing Consumer Market – An Overview of China’s Retail Industry, 2014 The surge in deals in emerging markets can
Slide 41: Market Outlook: Singapore, Residential
Market Outlook: Singapore, Residential Cautious mood as sales volume and prices slip - Savills World Research, Residential Sales – Singapore, April 2014 - CBRE, Singapore MarketView, Q1 2014 Residential property prices appear to be stabilising with the implementation of cooling measures and the to
Slide 42: Market Outlook: Retail, Singapore
Market Outlook: Retail, Singapore Singapore: Cautiously positive For 2014, the Ministry of Trade and Industry (MTI) is expecting economic growth of between 2 and 4 per cent;(1) The wholesale and retail trade grew 6.3% on a quarter-on-quarter basis(1); According to the Department of Statistics,
Slide 43: Market Outlook: Retail, Indonesia
Market Outlook: Retail, Indonesia Indonesia: Remains resilient Indonesia’s economic growth slowed down to 5.2%, a five-year low in 2014(1); Mainly due to the effects of a mineral export ban implemented in January 2014 and successive hikes in interest rates; According to Bank Indonesia, Indones
Slide 44: Growth Strategies
Growth Strategies 43
Slide 45: Growth Strategies
Growth Strategies Property Development Retail Operations & Investment Moving to fuller spectrum of Emphasis on: property market by leveraging on: Addition of new retail outlets Rich Retail Experience Strong Foothold and Improve trading performance Know-how in China Selection Enhance Merc
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 refinement and enhancement of lettable space Improve effi
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 Add Monsoon Accessorize outlets and specialties shops Improve trading performance Intensify sales performance Improve gro
Slide 48: Growth Strategies: Retail Operations
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 49: Outlook
Outlook 48
Slide 50: Outlook: Property Segment
Outlook Property Segment: Strategic alliances with partners to continue Launch of The Crest at Prince Charles Crescent More China property projects with Topspring Commercial Planning for next phase of asset reconfiguration for Metro City Shanghai Expected to commence in the next few months
Slide 51: Outlook: Retail Segment
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 C
Slide 52: Thank You
Thank You 51