Metro Holdings Ltd · SGX:M01
Metro — H1 FY2011 Earnings Presentation
46 slides from Metro's earnings presentation, Nov 12, 2010
Slide 1: SGX Miscellaneous Announcement: 1HFY2011 Results Presentation
MISCELLANEOUS Page 1 of 1 Print this page Miscellaneous * 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 METRO HOLDINGS LIMITED respect to
Slide 2: 1HFY2011 Results Presentation
METRO HOLDINGS LIMITED 1HFY2011 RESULTS PRESENTATION November 12, 2010
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 • GIE Tower, Guangzhou BEIJING • Gurney Park, Penang • Frontier Koishikawa Building, Tokyo TOKYO SHANGHAI List of Investments • Shui On Land GUANGZHOU • Crowne Plaza, Beiji
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 Grp (1) (“sqm”) Area Tenants (1) Rate (%) (1) (S$’m) (“sqm”) (100%) Metro City, 36 yr term 60% 15,342 40,319 110 98.3 234 (2) Shanghai from 1993 Metro City, 40 yr term 50% 32,484 116,9
Slide 8: Portfolio Overview
Portfolio Overview Completed Investment Properties under Associated Companies: % owned Tenure Site Area Lettable Area Occupancy Rate by Grp(1) (“sqm”) (“sqm”) (%) (1) Gurney Plaza 49% Freehold 7,660 12,577 100.0 Extension, Penang Tesco Lifespace, 40 yr term 10.7% 31,808 30,014 95.4 QinHuangDao (2) f
Slide 9: Occupancy Rate
Occupancy Rate 1HFY2011 (%) 1HFY2010 (%) Metro City, Shanghai 98.3 94.2 Metro City, Beijing 74.6 88.7 GIE Tower, Guangzhou 92.7 83.1 Metro Tower, Shanghai 76.1 96.6 Gurney Plaza Extension, Penang 100.0 98.7 ECMall, Beijing 83.6 46.4 Frontier Koishikawa Building, Tokyo(1) 73.2 - Metro City, Beijing (
Slide 10: 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 19.75% Tenant Mix by Lettable Area Physical Fitness & Leisure & Entertainment/ 10.24% (as at September 30, 2010) Beauty Centre Sport & Fitness Kodak Cinema Wo
Slide 11: Metro Tower, Shanghai
Metro Tower, Shanghai Top 10 Tenants: Total: 76.1% Name of Tenant Trade Sector % of total lettable area Exxon Mobil Petroleum & Chemicals 20.49% Tenant Mix by Lettable Area Swatch Group Consumer Products 9.53% (as at September 30, 2010) KFC F&B 8.41% AIA Banking, Insurance and Financial Services 6.7
Slide 12: Metro City, Beijing
Metro City, Beijing Top 10 Tenants: Name of Trade Sector % of Total: 74.6% Tenant lettable area Hong Xing Home Furnishings 30.12% Parkson Department Store Tenant Mix by Lettable Area Department 21.49% Store (as at September 30, 2010) Walmart Supermarkets 15.43% Supercentre 0.8% Gome Electronics & IT
Slide 13: GIE Tower, Guangzhou
GIE Tower, Guangzhou Top 10 Tenants: Total: 92.7% Name of Trade Sector % of Tenant lettable area Jin Yu Restaurant F&B 12.68% Tenant Mix by Lettable Area Ericsson IT Services & Telecommunication 11.89% (as at September 30, 2010) Guang Dong Banking, Insurance & 10.24% Development Bank Financial Servi
Slide 14: ECMall, Beijing
ECMall, Beijing Top 10 Tenants: Total: 83.6% Name of Trade Sector % of Tenant lettable area Tenant Mix by Lettable Area Golden Jaguar F&B/Food Court 17.94% (as at September 30, 2010) C&A Fashion & Shoes 5.96% Only/Vero/Moda/ Fashion & Shoes Jack&Jones/ 4.43% Selected H&M Fashion & Shoes 4.37% 0.8% 4
Slide 15: Frontier Koishikawa Building, Tokyo
Frontier Koishikawa Building, Tokyo Tenants: Total: 73.2% Name of Tenant Trade Sector % of lettable Tenant Mix by Lettable Area area (as at September 30, 2010) Shisyutsuhutan-koi Government Tanto-kan Somu-sho Office 26.81% Daijin-kanbo Kaikei- ka Kikaku-kan Lion F&B 14.58% 13.7% Wiley.japan Services
Slide 16: Tesco Projects, China
Tesco Projects, China Ownership Split: Metro Holding – 10.7%, Tesco Plc – 50.0%, HSBC NF / Nan Fung – 32.2%, Private Bankers – 7.1% Joint investment with Tesco Plc, HSBC NF China Real Estate Fund / Nan Fung and HSBC private banking clients QinHuangDao Fushun Anshan 5-storey & 2 5-storey & a 4-storey
Slide 17: Retail Operations
Retail Operations
Slide 18: 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 Senayan Square Metro Sengkang Metro Bandung Super
Slide 19: Retail Operations - Updates
Retail Operations- Updates Singapore: - New Takashimaya Accessorize/Monsoon outlet opened in 1QFY2011 Opening of Changi Airport Terminal 2 Accessorize outlet scheduled for 3QFY2011 Indonesia: - Trading conditions in Indonesia continues to be competitive and challenging New Metro Trans Makassar store
Slide 20: Financial Highlights
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Slide 21: 1HFY2011 Results Highlights
1HFY2011 Results Highlights Property division remains steady Higher rental income from Metro City Shanghai after revamp of basement into Japanese themed section Steady increase of occupancy at ECMall Beijing Initial contribution from newly acquired Frontier Koishikawa Building Retail division report
Slide 22: Financial Highlights
Financial Highlights Profit & Loss Accounts: 2QFY11 2QFY10 Change HFY2011 HFY2010 Change (S$’000) (S$’000) (%) (S$’000) (S$’000) (%) Turnover 43,372 36,236 +19.7 82,567 69,679 +18.5 Profit Before Tax 58,591 13,166 +345.0 67,786 30,377 +123.2 Net Profit Attributable to 51,910 9,325 +456.7 58,840 22,4
Slide 23: 2Q Revenue Breakdown
2Q Revenue Breakdown S$’m 50 40 26.8 30 22.8 20 10 13.4 16.5 0 2QFY2010 2QFY2011 Property Revenue Retail Revenue Property revenue rose by 23.3% q-o-q Higher rental income from Metro City Shanghai after completion of asset enhancement works Initial rental from Frontier Koishikawa building Retail turn
Slide 24: Half Year Revenue Breakdown
Half Year Revenue Breakdown S$’m 100 80 51.8 60 43.2 40 26.4 30.8 20 0 1HFY2010 1HFY2011 Property Revenue Retail Revenue Property revenue rose 16.4% y-o-y Higher rental income from EC Mall and Metropolis Tower Initial rental from Frontier Koishikawa building Retail turnover rose 19.7% y-o-y Trading
Slide 25: Turnover By Business Segments
Turnover By Business Segments 1HFY2010 S$43.2m 62.0% S$26.4m 38.0% 1HFY2011 S$30.8m 37.3% S$51.8m 62.7% Property Retail 24
Slide 26: PBT by Business Segments
PBT by Business Segments 1HFY2010 1HFY2011 S$0.7m 2.3% S$2.0m 3.0% S$29.7m 97.7% S$65.8m 97.0% Property Retail 25
Slide 27: Balance Sheet Highlights
Balance Sheet Highlights As at Sep 30, As at March 31, 2010 Change (%) 2010 (S$’000) (S$’000) Property, plant and 13,656 13,720 -0.5 equipment Investment Properties 692,317 630,773 +9.8 Other Non-current Assets 157,032 420,686 -62.7 Current Assets 610,320 298,502 +104.5 Total Assets 1,473,325 1,363,
Slide 28: Financial Highlights
Financial Highlights Financial Ratios: 1HFY2011 1HFY2010 Earnings per share after tax and minority 9.28 3.56 interests (cents) Return on shareholders’ funds (%) 6.1 2.51 Return on total assets (%) 4.23 1.77 Net assets per share (cents) 158.0 146.8 Debt/Equity ratio (times) 0.29 0.24 Net Debt/Equity
Slide 29: Dividend Payout
Dividend Payout Gross Cents Per Share Payout Rate 45.0% Ordinary Dividend Special Dividend 6.0 40.9% 40.0% 37.7% 5.0 35.0% 32.5% 31.8% 4.0 3.0 3.0 3.0 30.0% 20.3% 3.0 16.3% 1.0 21.8% 25.0% 2.0 20.0% 1.0 2.0 2.0 2.0 2.0 2.0 2.0 2.0 15.0% 0.0 FY2005 FY2006 FY2007 FY2008 28 FY2009 FY2010 1HFY2011 1HFY2
Slide 30: Market Outlook
Market Outlook
Slide 31: Market Outlook, Shanghai
Market Outlook, Shanghai Market conditions for Grade A office remains positive (1)(2) Q3 2010 saw rental levels increase slightly (Q3 2010: RMB 210.6/US$30.9 per sq m per month; Q2 2010: RMB 204.0/US$30.0 per sq m per month) Average Availability ratio was 11.3%, representing a decrease of 0.8 percen
Slide 32: Market Outlook, Shanghai
Market Outlook, Shanghai Steady performance for retail market space, with slight decrease in occupancy (1)(2) Rentals in all five core downtown retail hubs in Shanghai continued its upward trend in average rental increase in Q3 For Q3 2010, rental for five hubs increased on average by 1.65% q-o-q to
Slide 33: Market Outlook, Beijing
Market Outlook, Beijing Growth momentum of Beijing’s Grade A office market remains strong(1)(2)(3) Rental rates increased by 3.36% q-o-q to reach RMB160.7 (US$23.6) per sq m per month Overall Availability ratio for grade A office space dropped by 1.56 percentage points to 13.85% 265,015 sq m of new
Slide 34: Market Outlook, Guangzhou
Market Outlook, Guangzhou Grade A office space in Guangzhou benefits from rebound in local economy (1) Office market supported by sustaining economic recovery Number of leasing transactions have increased in Q3 Total volume of leased space decreased q-o-q, leading to a 21% decline in net absorption
Slide 35: Market Outlook, China
Market Outlook, China “China’s economy to grow 9% in 2011: Expert” - China Daily, Oct 18, 2010 “China’s exports and investments would be much better in 2011 that this year, but the growth rate of consumption would pull back slightly from this year’s boom, making 9 percent growth very likely.” “One d
Slide 36: Market Outlook, Retail
Market Outlook, Retail Singapore: Retail sales up; Benefits from growing tourist numbers Retail sales up 3.2% in July 2010 (1) Rose for a ninth month in July (1)(2) Booming job market and higher tourist arrivals boosted spending Monthly tourist arrivals exceeded the 1 million mark for the first time
Slide 37: Market Outlook, Retail
Market Outlook, Retail Indonesia: Retail sales poised for growth(1) Economy grew 5.7 percent y-o-y in Q1 2010, the fastest pace in more than a year (2) Steady growth forecasted for Indonesia’s retail sales from US$120bn in 2010 to US$202bn by 2014 Key factors include: • Strong underlying economic gr
Slide 38: Growth Strategies
Growth Strategies iA Dal METRO
Slide 39: 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 40: 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 Maintain special f
Slide 41: Growth Strategies
Growth Strategies Retail Operations Addition of new retail outlets Plans to open more outlets in Singapore when suitable real estate opportunities present themselves Opening additional Monsoon Accessorize outlets New Metro Makassa opened in 2QFY2011 New Metro Gandaria, Jakarta planned for opening in
Slide 42: Growth Strategies
Growth Strategies Retail Operations Upgrade Customer Relationship Management (CRM) System Engage expertise in CRM to leverage on available customer data base in current CRM system Enhance card membership with launch of new platinum card Adopt New Marketing Platform Adopt new Internet (online) techno
Slide 43: Outlook
iA Dal METRO
Slide 44: Outlook
Outlook Property Segment: Overall, rental income from Group’s four mature properties expected to grow steadily Higher income expected following the completion of asset enhancement activities Metro City Shanghai Streamlining of portfolio Disposal of 1 Financial Street, Beijing Sale of Metropolis Towe
Slide 45: Outlook
Outlook Retail Segment: Pickup in trading environment of retail division Improved consumer sentiments and consumer spending in Singapore and Indonesian economies Department store sales in Singapore register improvement across the board (1) Festive and promotional sales events encourages higher retai
Slide 46: Thank You
iA Dal METRO