Slide 1: 2009 Full Year Results Briefing
2009 Full Year Results Briefing 23 February 2010 1
Slide 2: Agenda
• 2009 IN SUMMARY • RESULTS OVERVIEW • PERFORMANCE REVIEW • PROSPECTS • Q&A 2
Slide 3: 2009 in Summary and Results Overview
UOL GROUP LIMITED • 2009 IN SUMMARY • RESULTS OVERVIEW GWEE LIAN KHENG GROUP CHIEF EXECUTIVE 3
Slide 4: Revenue crossed $1 billion for the first time
• Revenue crossed $1 billion for the first time (excluding share of sales revenue of associated companies) • PATMI nearly tripled to $424.2 million • Our capital position and earnings capacity remained strong despite global economic downturn • Pre-empted downside risk by unlocking development assets
Slide 5: Revenue, operating profit, PATMI, ROE and total assets
Revenue 12% to $1 billion • higher progressive recognition of revenue from residential projects • higher average rental rates from most of Group’s investment properties Operating Profit before fair value losses of associated companies 22%, $429.9m • higher income from property development, property
Slide 6: Income statement FY 2009 vs FY 2008
S$m FY 2009 FY 2008 % Change Revenue 1,007.1 899.2 +12 Operating profit before fair value (losses)/gains 429.9 351.5 +22 of associated companies Negative goodwill on acquisition of an 281.1 - n.m associated company Impairment of property, plant and equipment (3.8) (37.0) (90) Fair value losses on in
Slide 7: Per share and return metrics
FY 2009 FY 2008 Change % Earnings per share before fair value and other 42.0 cents 31.6 cents +33 gains/ (losses) Earnings per share 53.7 cents 18.5 cents +190 Net tangible asset value per share $5.25 $4.22 +24 Return on equity before fair value and other 8.0% 7.4% +8 gains/ (losses) Return on equit
Slide 8: Equity, cash, net debt and gearing
FY 2009 FY 2008 % Change Total equity $4,608m $3,815m 21 Cash $281m $264m 6 Net debt $1,986m $1,619m 23 Gearing ratio 0.43 0.42 - Average borrowing cost 2.33% 2.95% Improved % Term loan 73% 72% - Interest cover 9 Xs 10 Xs - (including interest capitalised) Ave debt maturity (Yr) 1.9 years 2.2 years
Slide 9: Debt maturity profile
Year Maturity profile (as at 31.12.09) $m % Within 1 year 697 20 1-2 years 324 19 2-3 years 839 29 > 3 years 326 32 Total Debt 2,186 100 9
Slide 10: A Decade of Growth
A Decade of Growth CAGR 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 % Revenue 339.7 349.8 509.0 461.9 461.2 505.5 605.1 713.5 899.2 1,007.1 12.8 Profit before tax 114.2 103.2 200.1 115.9 485.6 149.8 406.8 938.8 210.4 493.5 17.7 PATMI 72.2 69.6 161.4 78.8 381.6 100.1 339.4 758.9 147.2 424.2 21.
Slide 11: Performance Review and Prospects
UOL GROUP LIMITED • PERFORMANCE REVIEW • PROSPECTS LIAM WEE SIN CHIEF OPERATING OFFICER 11
Slide 12: Key Revenue Drivers
($m) Key Revenue Drivers Variance 2009 vs 2008 + 41% 533.8 379.2 - 13% 339.0 294.5 + 12% FY 2009 141.7126.1 FY 2008 - 31% - 34% 21.2 30.8 15.9 24.1 Property Property Hotel operations Dividend Management development investments Income services 12
Slide 13: Key Profit Drivers
($m) Key Profit Drivers Variance 2009 vs 2008 + 26% 155.1 122.9 + 32% 100.6 - 38% FY 2009 76.2 71.3 FY 2008 44.2 - 32% 30.7 - 49% 20.9 3.0 6.0 Property Property Hotel Dividend Management development investments operations Income services 13
Slide 14: Revenue, operating profit and total assets by geography
($m) Revenue Segmental Total Asset Value Operating Profit 1,007.1 899.2 316.4 299.5 7,328.0 6,093.5 13% 12% 36.8 11% 827.5 778.8 232.4 51.6 23% 254.2 17% 28% 88% 279.6 89% 87% 6,500.5 77% 774.7 83% 247.9 5,314.7 72% 645.0 FY2009 FY2008 FY2009 FY2008 FY2009 FY2008 Local International 14
Slide 15: Property Development revenue
Property Development FY 2009 FY 2008 FY 2009 FY 2008 Hotel Hotel + 41% operations 533.8 Management operations Management $294.5m $339.0m services services 29% $15.9m 38% $24.1m Property investments 2% 3% 379.2 $141.7m Investments Investments 14% $21.2m $30.8m 2% 3% Property investments $126.1m 14% P
Slide 16: Property Development profit
Property Development FY 2009 FY 2008 FY 2009 FY 2008 Hotel Hotel + 26% operations operations Management Property $44.2m Management $71.3m services 155.1 investments 14% services Property 23% $6.0m $100.6m $3.0m investments 2% 31% 1% $76.2m 122.9 Investments 25% Investments $20.9m $30.7m 6% 10% Prope
Slide 17: Record sale of over 1,000 residential units
Record sale of over 1,000 residential units and sales value of $1.2 billion No. of Units Sales Value Total Floor Area Sold $m (sq m) 2009 1,013 1,200* 132,380 2008 317 1,048 57,510 2007 299 675 46,300 2006 535 426 53,160 2005 44 43 5,130 * Sales value in FY2009 increased by 15%. 17
Slide 18: New launches tap rising demand in mass and mid-markets
New launches tap rising demand in mass and mid-markets Double Bay Residences Meadows@Peirce • Located along Simei Street 4 near Changi • Located along Upper Thomson Road Business Park • 479 apartment units • 646 apartment units • Launched in July 2009 • Launched in March 2009 • 73% SOLD as at 31 Dec
Slide 19: Sold out of Breeze by the East and strong sale for Nassim Park Residences
Sold out of Breeze by the East and strong sale for Nassim Park Residences Nassim Park Residences Breeze by the East Nassim Park Residences • Located along Upper East Coast • Super-luxury development • 88 unit boutique development • 100 exclusive apartments • Launched in May 2008 • Launched in June 2
Slide 20: Sale status of launched projects
Sale status of launched projects Launched No. of Units Units sold* Average psf (as at 31.12.09) Meadows@Peirce July 2009 479 73% S$868 Double Bay Residences March 2009 646 92% S$652 Nassim Park Residences June 2008 100 85% S$2,898 Breeze by the East May 2008 88 100% S$847 Panorama April 2008 223 88%
Slide 21: New acquisitions through GLS and JV
New acquisitions through GLS and JV Acquired GLS site at Dakota Crescent • Site area 17,190 sq m • GFA 60,164 sq m, approx. 616 units • 100% stake JV with fund managed by LaSalle Asia Investment Management for site at Toh Tuck Road • Former Rainbow Gardens • Site area 12,093 sq m • GFA 16,930 sq m,
Slide 22: Over 1,000 pipeline residential units in Singapore
Over 1,000 pipeline residential units in Singapore Project Name/Location Tenure Site Area Est. Est. % of Land (sq m) Saleable No. of Owned Area Units (sq m) Site at Dakota Crescent 99 17,190 59,280 616 100 ‘Spottiswoode Park/ FH 9,605 27,850 350 100 Oakswood Heights’ at Spottiswoode Site at Toh Tuck
Slide 23: Over 1,000 pipeline residential units in international
Over 1,000 pipeline residential units in international Project Name/Location Site Area Est. Est. % Owned (sq m) Saleable Area No. of (sq m) Units Tianjin (Hai He) 22,895 56,140 520 90 *Mixed development KL (Jalan Conlay) 15,986 81,220 494 60 Total 38,881 137,360 1,014 *Mixed development consisting o
Slide 24: Two residential TOPs in 2009
Two residential TOPs in 2009 Pavilion 11 Pavilion 11 • 180-unit condominium along Minbu/Akyab Road (District 11) one-north Residences • 405 units of mixed office and residential apartments and 22 retail units at one-north Gateway one-north Residences 24
Slide 25: 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 31.12.09) Complete TOP Date Stake (sq m) (as at 31.12.09) One Amber 30 562 68,740 100 76 1Q2010 The Regency at Tiong Bahru 60 158 18,200 100 95 1Q2010 Southbank 70 273
Slide 26: 2009 Awards for residential projects
2009 Awards for residential projects Newton Suites Newton Suites • International Architecture Award (IAA) • Green Good Design Award • MIPIM Asia Award • 1st Runner Up for FIABCI Prix d'Excellence Award one-north Residences Singapore • Cityscape Asia - Best Urban Design & Master Planning (Highly Comm
Slide 27: Property Investments revenue
Property Investments FY 2009 FY 2008 FY 2009 FY 2008 + 12% 141.7 Management Management services Investments services Investments $15.9m $21.2m $24.1m Hotel $30.8m Hotel 2% 2% Property 3% operations 3% operations development $339.0m $294.5m Property $533.8m 38% development 29% 53% $379.2m 126.1 42% P
Slide 28: Property Investments profit
Property Investments FY 2009 FY 2008 FY 2009 FY 2008 + 32% Management Management services Investments 100.6 services Investments $6.0m $30.7m $3.0m Property Hotel $20.9m development Hotel 2% 10% 1% 6% operations Property 76.2 operations $155.1m $44.2m 48% $71.3m development 14% 23% $122.9 40% Proper
Slide 29: Properties Net Lettable Area
Properties Net Lettable Area (sq m) Singapore Novena Square 57,197 United Square 45,749 Odeon Towers 18,360 Faber House 3,866 Total 125,172 Pipeline Tianjin (Hai He) 18,492 Mixed development Grand Total 143,664 Velocity@Novena Square United Square 29
Slide 30: Tenancy Management
Tenancy Management Lease Renewal % Change in % of Lease % of Lease Overall Expiry in Renewed Average Rent 2010* as at 31.12.09 FY09 vs FY08 Offices Novena Square +4 68 80 United Square +18 35 17 Odeon Towers +26 30 12 Faber House +3 51 10 Shopping Malls Velocity +4 30 32 United Square +10 31 17 * %
Slide 31: Above 90% occupancy for all commercial properties
Above 90% occupancy for all commercial properties YTD 31.12.09 98% 95% 93% 93% Novena Square United Square Odeon Towers Faber House NLA 57,197 45,749 18,360 3,866 (sq m) 31
Slide 32: Lease Expiry by Property
Lease Expiry by Property 58% 51% 33% 28% 29% 30% 32% 2010 24% 26% 2011 17% 15% 2012 12% Novena Square United Square Odeon Towers Faber House As at 31 December 2009, 55% of office leases and 24% of retail leases expiring in 2010 renewed. 32
Slide 33: Commercial Tenant Mix
Commercial Tenant Mix Industry/ Sectors Office space (%) FMCG 17 Electronics, IT, Telco 11 Property & Construction 11 Banking, Insurance & Finance 8 Energy & Resources 7 Industry/ Sectors Retail space (%) Food & Beverage 26 Sports & Fitness 14 Education 13 Fashion & Accessories 12 Health, Beauty & W
Slide 34: A&P programmes and Awards for retail malls
A&P programmes and Awards for retail malls United Square • Popular character shows such as Barney and Ben 10 • Increased family friendly services at United Square • Won the Singapore Retailers Association Best Centre United Square Management Award 2009 Velocity@Novena Square • Asian Youth Games masc
Slide 35: UIC became a 32% associated company in Q1 2009
UIC became a 32% associated company in Q1 2009 • Timely acquisition yields $281 million negative goodwill in FY2009 • Proxy play on Singapore’s office market and exposure to quality commercial properties Share of operating profits of associated companies up 150% • Increased contribution from Nassim
Slide 36: Prospects
PROSPECTS W UOL Group Limited 36
Slide 37: Economic rebound in Asia, uncertainty in US & Europe
Economic rebound in Asia, uncertainty in US & Europe - Asia-led recovery with strong liquidity, accelerating urbanization and rising consumption - Concerns on US & Europe jobless recovery, sovereign debt crisis and risks from withdrawal of fiscal stimulus Healthy fundamentals for key Asia property m
Slide 38: Property Development, Property Investments, Strategic Investments outlook
Property Development Property Investments Strategic Investments Market diversification Strategic expansion to broaden UIC, UOB and PPHG. Achieve more balanced capabilities and grow earnings. geographic contributions. Brand recognition of United Scale up portfolio in China and Square and Velocity as
Slide 39: 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 40: Thank You
THANK YOU W UOL Group Limited 40