Slide 1: 2010 Full Year Results Briefing
2010 Full Year Results Briefing 22 February 2011 1
Slide 2: Agenda
• 2010 IN SUMMARY • RESULTS OVERVIEW • PERFORMANCE REVIEW • GOING FORWARD • Q&A 2
Slide 3: 2010 In Summary / Results Overview
UOL GROUP LIMITED • 2010 IN SUMMARY • RESULTS OVERVIEW GWEE LIAN KHENG GROUP CHIEF EXECUTIVE 3
Slide 4: Record revenue and operating profit in 2010
• Record revenue > $1 billion for the second consecutive year • Record operating profit before fair value gains/(losses) • Successfully sold three new residential projects • Contribution from property investments weakens slightly due to vacancy. • Initiated asset enhancement & business expansion for
Slide 5: Revenue, PATMI, ROE and total assets changes
Revenue 29% to $1.29 billion • higher progressive recognition of revenue from residential projects • higher average rental rates from most of Group’s investment properties and hotels Profit before fair value and other gains/(losses) 27% to $543.9m • higher income from property development, hotel ope
Slide 6: Income statement summary FY2010 vs FY2009
S$m FY 2010 FY 2009 % Change Revenue 1,294.6 1,007.1 +29 Profit before fair value and other gains/(losses) 543.9 429.9 +27 Negative goodwill on acquisition of interests in 50.3 281.1 -82 associated companies Impairment of property, plant and equipment - (3.8) n.a Fair value gains/(losses) on associa
Slide 7: Per share and return metrics
FY 2010 FY 2009 % Change Earnings per share before fair value and other 55.0 cents 42.0 cents +31 gains/(losses) Earnings per share 95.6 cents 53.7 cents +78 Net tangible asset value per share $6.05 $5.25 +15 Return on equity before fair value and other 9.0% 8.0% +13 gains/(losses) Return on equity
Slide 8: Equity, cash, net debt and gearing
FY 2010 FY 2009 % Change Total equity $5,207m $4,608m +13 Cash $313m $281m +11 Net debt $1,877m $1,986m -5 Gearing ratio 0.36 0.43 -16 Average borrowing cost 1.99% 2.33% improved % Term loan 72% 73% - Interest cover 19 Xs 9 Xs - (including interest capitalised) Ave debt maturity (Yr) 1.5 years 1.9 y
Slide 9: Maturity profile as at 31.12.10
Maturity profile (as at 31.12.10) $m % Within 1 year 759 36 1-2 years 827 39 2-3 years 278 13 > 3 years 260 12 Total Debt 2,124 100 9
Slide 10: A Decade of Growth
A Decade of Growth CAGR 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 % Revenue ($m) 349.8 509.0 461.9 461.2 505.5 605.1 713.5 899.2 1,007.1 1,294.6 15.4 Profit before fair value and other gains/(losses) 103.2 200.1 115.9 485.6 149.3 158.6 273.3 351.5 429.9 543.9 20.3 ($m) Profit before income t
Slide 11: Performance Review / Going Forward
UOL GROUP LIMITED • PERFORMANCE REVIEW • GOING FORWARD LIAM WEE SIN PRESIDENT (PROPERTY) 11
Slide 12: Group structure by business segment
Residential Developments Property Wholly-owned projects Development Joint-venture projects Commercial Properties/Serviced Suites Wholly-owned properties Property Joint-venture properties Investments UNITED INDUSTRIAL CORPORATION LIMITED (42%) MARINA CENTRE HOLDINGS PTE LTD (23%) Hotel Investments UO
Slide 13: Revenue by Business Segments
($m) Revenue by Business Segments Variance 2010 vs 2009 781.1 +46% 533.8 +10% 325.1 294.5 FY 2010 +4% FY 2009 147.9141.7 +4% +16% 22.0 21.2 18.5 15.9 Property Property Hotel Dividend Management development investments operations Income services Segment Contribution FY 2010 (%) FY 2009 (%) Property d
Slide 14: Operating Profit by Business Segments
($m) Operating Profit by Business Segments Variance 2010 vs 2009 + 9% 169.0 155.1 - 1% 99.2 100.6 FY 2010 + 16% FY 2009 51.5 44.2 + 4% 21.8 20.9 +12% 3.4 3.0 Property Property Hotel Dividend Management development investments operations Income services Segment Contribution FY 2010 (%) FY 2009 (%) Pr
Slide 15: Revenue, Adjusted EBITDA and Total Asset Value by geography
(%) Revenue FY2010: S$1,294.6m 78 8 8 24 FY2009: S$1,007.1m 77 9 6 4 4 Adjusted EBITDA* Singapore FY2010: S$773.6m 91 3 3 3 Australia Malaysia FY2009: S$454.0m China 86 5 32 4 Others *Excludes unallocated cost, other gains/losses and fair value gains/losses on investment properties Total Asset Value
Slide 16: Lion City Hotel site and Shanghai Parcel 11
Lion City Hotel site and adjoining Hollywood Theatre site in Jan 2011 • Site area 13,740 sq m • Near existing Paya Lebar MRT Interchange • 100% stake LION CITY HOTEL SITE Parcel 11 in Changfeng District, Shanghai • Site area 39,540 sq m • Within Changfeng Ecological Business Park in Putuo District •
Slide 17: Record sale of over 1,200 residential units
Record sale of over 1,200 residential units and sales value of $1.73 billion No. of Units Sold No. of Sales Total Floor Units Value Area Sold $m (sq m) 1,240 1,013 2010 1,240 1,729* 128,550 2009 1,013 1,200 132,380 535 2008 317 1,048 57,510 299 317 2007 299 675 46,300 2006 535 426 53,160 * Sales val
Slide 18: New launches in 2010
New launches in 2010 Waterbank at Dakota Terrene at Bukit Timah Spottiswoode Residences • Located along Dakota Crescent • Located along Toh Tuck Road • Located along Spottiswoode Park • 616 apartment units • 172 apartment units Road • Launched in April 2010 • Launched in July 2010 • 351 apartment un
Slide 19: Sale status of launched projects
Sale status of launched projects Launched No. of Units %Sold* Average psf (as at 31.12.10) Spottiswoode Residences Nov 2010 351 76 S$1,900 Terrene at Bukit Timah Jul 2010 172 100 S$1,170 Waterbank at Dakota Apr 2010 616 100 S$1,150 Meadows@Peirce Jul 2009 479 100 S$875 Double Bay Residences Mar 2009
Slide 20: Profit recognition of launched projects
Profit recognition of launched projects (Only for pre-TOP) Project Name % No. of Saleable % Sold % Approx. Equity Units Area (as at 31.12.10) Complete TOP Date Stake (sq m) (as at 31.12.10) Duchess Residences 70 120 19,800 99 97 1Q2011 Breeze by the East 100 88 16,120 100 85 1Q2011 Nassim Park Resid
Slide 21: Three residential TOPs in 2010
Three residential TOPs in 2010 Southbank The Regency@Tiong Bahru One Amber Southbank • 197 apartments, 60 SoHo units and 16 retail units along North Bridge Road One Amber • 562-unit condominium at Amber Gardens The Regency@Tiong Bahru • 158-unit condominium at Chay Yan Street 21
Slide 22: Over 1,000 residential units in overseas pipeline
Over 1,000 residential units in overseas pipeline Project Name/Location Site Area Est. Est. % Owned (sq m) Saleable Area No. of (sq m) Units Shanghai (Changfeng) 39,540 77,800 600 40 **Mixed development Tianjin (Hai He) 22,895 42,960 522 90 *Mixed development KL (Jalan Conlay) 15,986 81,220 494 60 T
Slide 23: Office, retail and serviced suites properties
Net Lettable Area (sq m)/ *GFA (sq m) Office properties Novena Square 38,960 United Square 27,205 Odeon Towers 18,412 Faber House 3,890 SubTotal 88,467 Pipeline Tianjin (Hai He) 12,283 Office component of mixed development Total 100,750 Retail properties Novena Square shopping mall 15,817 United Squ
Slide 24: Tenancy Management
Tenancy Management Lease Renewal % Change in Lease Expiry in % of 2011 Overall 2011 Lease Average Rent (sq m) Renewed FY10 vs FY09 NLA %* as at 31.12.10 Offices Novena Square - 7,540 19 25 United Square -9 8,317 31 16 Odeon Towers -11 6,060 33 64 Faber House -12 970 25 10 Subtotal -7 22,887 26 31 Sh
Slide 25: Above 90% occupancy for all commercial properties
Above 90% occupancy for all commercial properties YTD 31.12.10 98 92 99 99 90 90 Novena United Square Odeon Faber House Novena United Square Square office office Towers office office Square Shopping Mall Shopping Mall NLA 38,960 27,205 18,412 3,890 15,817 18,717 (sq m) 25
Slide 26: Lease Expiry by Property
Lease Expiry by Property (%) 44 42 33 31 31 28 25 25 25 26 25 23 24 2011 19 20 2012 17 15 2013 13 Novena Square United Square Odeon Towers Faber House Novena Square United Square office office office office Shopping Mall Shopping Mall 26
Slide 27: Commercial Tenant Mix
Commercial Tenant Mix Office space (%) Retail space (%) 15 9 7 9 6 10 5 10 10 7 15 13 18 26 27 13 Consumer Goods Food & Beverage Property, Construction &Transportation Sports & Fitness Banking, Insurance and Finance Services Education Fashion & Accessories Energy, Resources &Engineering Health, Beau
Slide 28: Awards for residential projects and retail mall
Newton Suites Residential projects Newton Suites • Urban Land Institute Awards for Excellence: Asia Pacific one-north Residences Singapore one-north Residences • FIABCI Prix d’Excellence Award (Residential Category, 1st Runner Up) Retail Shopping Mall United Square • Singapore Retailers Association
Slide 29: UOL increases stake in UIC to 42%
UOL increases stake in UIC to 42% in Q4 2010 • Acquisition from UOB makes UOL the largest shareholder of UIC • Proxy play on Singapore’s office market and exposure to quality commercial properties Share of operating profits of associated companies up 51% • $232.9 million vs $154.4 million in FY 2009
Slide 30: Going Forward
W UOL Group Limited GOING FORWARD _PPFFPPPEPEEEREE
Slide 31: Strategic priorities going forward
• Adopt a nimble and prudent stance to replenish land bank in Singapore • Improve property yield through positive renewal, tenancy remix & asset enhancement • Maintain good balance between recurring income versus development profit • Measured expansion into overseas markets to diversify revenue driv
Slide 32: Forward-looking statements 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 UOL Group
Slide 33: Thank You
W UOL Group Limited THANK YOU
Slide 34: Q&A
W UOL Group Limited Q&A