Metro Holdings Ltd · SGX:M01
Metro — FY2011 Earnings Presentation
50 slides from Metro's earnings presentation, May 26, 2011
Slide 1: SGX Financial Statement Announcement Cover Page
Print this page FY2011 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 of METRO HOLDINGS LIMITED Announcement is submitted with
Slide 2: FY2011 Results Presentation
METRO HOLDINGS LIMITED FY2011 RESULTS PRESENTATION 26 May 2011
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 - 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, Beijing • ECMall, Beijing • Metro City, Shanghai • Metro Tower, Shanghai BEIJING • GIE Tower, Guangzhou • Frontier Koishikawa Building, Tokyo TOKYO SHANGHAI List of Investments GUANGZHOU • Shui On Land • Top Spring International List of Retail o
Slide 6: Property Development & Investment
Property Development & Investment
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$’m) (“sqm”) (100%) Metro City, 36 yr term 60% 15,342 39,423 110 98.3 241 (1) Shanghai from 1993 Metro City, 40 yr term 50% 32,484 116
Slide 8: Portfolio Overview
Portfolio Overview Completed Investment Properties under Associated Companies: % owned by Grp(1) Site Area Lettable Area Occupancy Rate Tenure (“sqm”) (“sqm”) (%) (1) Tesco Lifespace, 40 yr term 10.7% 31,808 30,041 93.0 (1) QinHuangDao (2) from 2005 Tesco Lifespace, Fushun (2) (4) 40 yr term 10.7% 1
Slide 9: Portfolio Overview
Portfolio Overview Investment Properties Under Development by Associated Companies: % owned by No. of Grp(1) Lettable Area Scheduled Location Tenure Tenants (sqm) Opening Under LOI Tesco Lifespace, Xiamen, 40 yr term 10.7% 28,700 (1) August 2011 NA PRC from 2005 Xiamen Tesco Lifespace, Shenyang, 40
Slide 10: Property Investment
Property Investment Property Valuation (100%): FY2011 FY2010 FY2011 FY2010 (%) (%) (Rmb’m) (Rmb’m) (S$’m) (S$’m) Metro City, Shanghai 1,255 1,142 9.9 241 234 +3.0 Metro City, Beijing 1,668 1,644 1.4 320 337 -5.0 GIE Tower, Guangzhou 473 467 1.3 91 96 -5.2 Metro Tower, Shanghai 873 866 0.8 168 178 -5
Slide 11: Occupancy Rate
Occupancy Rate FY2011 (%) FY2010 (%) Metro City, Shanghai 98.3 86.8 Metro City, Beijing 74.5 74.6 GIE Tower, Guangzhou 95.2 86.4 Metro Tower, Shanghai 84.3 73.9 ECMall, Beijing (1) 89.1 63.2 Frontier Koishikawa 73.2 - Building, Tokyo (2) Metro City, Beijing(1) (2) Completed in late 2QFY2010 Acquired
Slide 12: Property Investment- Expiry Profile
Property Investment- Expiry Profile Expiry Profile by Gross Rental Income: 1H2012 (%) 2H2012 (%) Metro City, Shanghai 2.81 6.63 Metro City, Beijing 0.13 0.24 GIE Tower, Guangzhou 10.56 15.31 Metro Tower, Shanghai 9.25 NIL ECMall, Beijing 0.97 0.36 Frontier Koishikawa NIL 81.33 Building, Tokyo 11
Slide 13: Metro City, Shanghai
Metro City, Shanghai Top 10 Tenants: Total: 98.3% Name of Tenant Trade Sector % of total lettable area Buynow Computer Electronics & IT World 19.73% Retail Tenant Mix by Lettable Area Physical Fitness & Leisure & Entertainment/ 10.23% (as at March 31, 2011) Beauty Centre Sport & Fitness Kodak Cinema
Slide 14: Metro Tower, Shanghai
Metro Tower, Shanghai Top 10 Tenants: Total: 84.3% Name of Tenant Trade Sector % of total lettable area Exxon Mobil Petroleum & Chemicals 20.66% Office Tenant Mix by Lettable Area Swatch Group Consumer Products 10.74% (as at March 31, 2011) KFC F&B 8.50% AIA Banking, Insurance and 6.60% Financial Se
Slide 15: Metro City, Beijing
Metro City, Beijing Top 10 Tenants: Name of Trade Sector % of Total: 74.5% Tenant lettable area Hong Xing Home Furnishings 30.16% Parkson Department Store Retail Tenant Mix by Lettable Area Department 21.52% Store (as at March 31, 2011) Walmart Supermarkets 15.45% Supercentre Gome Electronics & IT 0
Slide 16: GIE Tower, Guangzhou
GIE Tower, Guangzhou Top 10 Tenants: Total: 95.2% Name of Trade Sector % of Tenant lettable area Jin Yu Restaurant F&B 12.68% Office Tenant Mix by Lettable Area Ericsson IT Services & (as at March 31, 2011) Telecommunication 11.89% Guang Dong Banking, Insurance & 6.34% Development Bank Financial Ser
Slide 17: ECMall, Beijing
ECMall, Beijing Top 10 Tenants: Total: 89.1% Name of Trade Sector % of Tenant lettable area Retail Tenant Mix by Lettable Area Golden Jaguar F&B/Food Court 17.95% (as at March 31, 2011) C&A Fashion & Shoes 5.97% Only/Vero/Moda/ Fashion & Shoes Jack&Jones/ 3.59% 5.40% Selected 1.70% H&M Fashion & Sho
Slide 18: Frontier Koishikawa Building, Tokyo
Frontier Koishikawa Building, Tokyo Tenants: Total: 73.2% Name of Tenant Trade Sector % of lettable Office Tenant Mix by Lettable Area area (as at March 31, 2011) Shisyutsuhutan-koi Government Tanto-kan Somu-sho Office 26.81% Daijin-kanbo Kaikei- 7.30% ka Kikaku-kan 13.70% Lion F&B 14.58% Wiley.japa
Slide 19: Tesco Projects, China
Tesco 1 Projects, China Ownership Split: Metro Holding – 10.7%, Tesco Plc – 50.0%, InfraRed NF (FKA HSBC NF) / Nan Fung – 32.2%, Private Bankers – 7.1% Joint investment with Tesco Plc, InfraRed NF China Real Estate Fund (FKA HSBC NF China Real Estate Fund) / Nan Fung and HSBC private banking cli
Slide 20: Tesco Projects, China
Tesco 2 Projects, China Ownership Split: Metro Holding – 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 3-storey & 2-basement 5-storey &
Slide 21: Retail Operations
Retail Operations
Slide 22: 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 Ba
Slide 23: Retail Operations- Updates
Retail Operations- Updates Singapore: - New Takashimaya Accessorize/Monsoon outlet opened in 1QFY2011 New Accessorize outlet at Changi Airport Terminal 2 opened in 3QFY2011 Indonesia: - Trading conditions in Indonesia continues to be competitive and challenging New Metro Trans Studio Makassa
Slide 24: Financial Highlights
Highlights ih DAI METRO
Slide 25: FY2011 Results Highlights
FY2011 Results Highlights Property division reports higher rental Higher rental income from Metro City Shanghai (after asset enhancement works), EC Mall Beijing and Frontier Koishikawa Building Tokyo, more than offset lower rental income from Metro Tower Shanghai due to lower occupancy Rental i
Slide 26: Financial Highlights
Financial Highlights Profit & Loss Accounts: 4QFY11 4QFY10 Change FY2011 FY2010 Change (S$’000) (S$’000) (%) (S$’000) (S$’000) (%) Turnover 45,350 39,917 +13.6 175,245 150,981 +16.7 Profit Before Tax 25,362 68,234 (62.8) 105,516 114,951 (8.2) Net Profit Attributable to 14,556 55,977 (74.0) 81,896 93
Slide 27: 4Q Revenue Breakdown
4Q Revenue Breakdown S$’m 50 40 29.1 25.9 30 20 16.3 14.1 10 0 FY2011 FY2010 Property Revenue Retail Revenue Retail turnover rose 12.5% y-o-y Increase in retail revenue mainly contributed by higher level of sales for Singapore stores in the shopping period leading up to Chinese New Year Proper
Slide 28: Full Year Revenue Breakdown
Full Year Revenue Breakdown 200 S$’m 150 111.9 96.3 100 50 63.4 54.7 0 FY2011 FY2010 Property Revenue Retail Revenue Retail turnover rose 16.1% y-o-y Improved consumer spending in Singapore Sales improvement broad based, with significant contribution from the new Metro City Square department st
Slide 29: Turnover By Business Segments
Turnover By Business Segments FY2011 S$63.4 m FY2010 36.2% S$54.7m 36.2% S$111.9m 63.8% S$96.3m 63.8% Property Retail 28
Slide 30: PBT by Business Segments
PBT by Business Segments FY2011 S$7.1m FY2010 6.7% S$6.2m 5.4% S$98.4 m 93.3% S$108.8m 94.6% Property Retail 29
Slide 31: Balance Sheet Highlights
Balance Sheet Highlights As at Mar 31, 2011 As at Mar 31, 2010 Change (%) (S$’000) (S$’000) Property, plant and 16,223 13,720 +18.2 equipment Investment Properties 688,452 630,773 +9.1 Other Non-current Assets 197,202 420,686 -53.1 Current Assets 532,113 298,502 +78.3 Total Assets 1,433,990 1,363,68
Slide 32: Financial Highlights
Financial Highlights Financial Ratios: FY2011 FY2010 Earnings per share after tax and minority 12.8 14.9 interests (cents) Return on shareholders’ funds (%) 8.18 9.75 Return on total assets (%) 5.85 7.01 Net assets per share (cents) 155.4 156.2 Debt/Equity ratio (times) 0.25 0.21 Net Debt/Equity rat
Slide 33: Dividend Payout
Dividend Payout Gross Cents Per Ordinary Dividend Special Dividend Share 44.4% 45.0% --- Payout Rate (*) 6.0 40.0% 37.7% 40.9% 5.0 35.0% 4.0 31.8% 3.0 3.0 3.0 3.0 30.0% 3.0 1.0 25.0% 2.0 20.3% 1.0 2.0 2.0 2.0 2.0 2.0 2.0 20.0% 16.3% 0.0 10.0% FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 * FY2011 payout
Slide 34: Market Outlook
Market Outlook ih DAI METRO
Slide 35: Market Outlook, China
Market Outlook, China “China’s Economic Outlook Remains Favourable” - World Bank, China Quarterly Update, Apr 28, 2011 China’s economic outlook remains broadly favourable with real GDP growth projected at 9.3 percent in 2011 and 8.7 percent in 2012, but risks on inflation and the property market cal
Slide 36: Market Outlook, Shanghai
Market Outlook, Shanghai Market conditions for Grade A office remains positive (1)(2)(3) ¾ Strong demand for space against limited new supply in core areas, which pushed up average rents in 1Q ¾ Shanghai average office rent achieved a robust q-o-q growth of 5.9% to RMB 232.3 psm per month, the big
Slide 37: Market Outlook, Shanghai
Market Outlook, Shanghai Retail market remains solid, with slight decrease in occupancy (1)(2) ¾ Retail sales in Shanghai broke the previous Chinese New Year holiday record in Shanghai and in line with these figures, retail rental in all five core downtown retail hubs edged up ¾ Retail sales in Sh
Slide 38: Market Outlook, Beijing
Market Outlook, Beijing Growth momentum of Beijing’s Grade A office market remains strong(1)(2)(3) ¾ Despite the total stock of Beijing Grade A office expanding by 8.81% YoY with new injections, the overall vacancy rate dropped steeply, by 2.46 percentage points QoQ to 7.55%, given the extremely r
Slide 39: Market Outlook, Guangzhou
Market Outlook, Guangzhou Grade A office space in Guangzhou remains stable (1)(2) ¾ Average rental increased by 2.2% QoQ to RMB 138.7 (US$21.2) per sq m per month(1) ¾ Leasing activities cooled for a while during the China Spring Festival which is a traditional low season, but picked up again towa
Slide 40: Market Outlook, Retail
Market Outlook, Retail Singapore: Retail sales up; spurred by strong domestic demand ¾ Retail sales up 2.9% in January 2011 (1)(2) • All retail segments, except motor vehicles posted higher sales y-o-y. Other sectors, including department stores, watches & jewelry and apparel & footwear, recorded d
Slide 41: Market Outlook, Retail
Market Outlook, Retail Indonesia: Retail sales poised for growth(1) ¾ GDP growth expected to reach 6.4% in 2011 ¾ While Indonesia faces steep challenges in the form of inflation and poor infrastructure, domestic consumption is expected to remain strong and investment is likely to pick up, bolsteri
Slide 42: Growth Strategies
Growth Strategies ih DAI METRO
Slide 43: Growth Strategies
Growth Strategies Property Development & Investment Retail Operations Continue to prudently Emphasis on: leverage on: - Addition of new specialties shops - Rich Retail Experience - Strong Foothold and - Enhancing Merchandise Offering Know how in China - Improving Customer Service Selection - Upgrade
Slide 44: Growth Strategies
Growth Strategies Property Development and Investment Leverage on Rich Retail Experience ¾ Optimise tenant mix ¾ Continual enhancement of lettable space ¾ Improve efficiency of mall management Capitalise on Strong Foothold in the Asia-Pacific region ¾ Opportunistic search for new projects ¾ Main
Slide 45: Growth Strategies
Growth Strategies Retail Operations Addition of new retail outlets ¾ Plans to open more outlets in Singapore when suitable real estate opportunities present themselves ¾ Opening additional Monsoon Accessorize outlets ¾ New store in Indonesia Enhance Merchandise Offering ¾ Leverage on strong rela
Slide 46: Growth Strategies
Growth Strategies Retail Operations Upgrade Customer Relationship Management (CRM) System ¾ Engage expertise in CRM to leverage on available customer data base in current CRM system ¾ Enhance card membership with launch of new platinum card Adopt New Marketing Platform ¾ Adopt new Internet (onli
Slide 47: Outlook
Outlook ih DAI METRO
Slide 48: Outlook
Outlook Property Segment: Rental income from Group’s four mature properties expected to remain stable ¾ Metro City Shanghai following the completion of an asset enhancement exercise; EC Mall in Beijing; and the newly acquired Frontier Koishikawa Building in Tokyo ¾ Intend to divest Metro City Beij
Slide 49: Outlook
Outlook Retail Segment: Retail division seeks to improve its sales performance ¾ Retail sector remains highly competitive in Singapore and Indonesia Continue to identify new sites for store expansion 48
Slide 50: Thank You
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