Metro Holdings Ltd · SGX:M01
Metro — FY2012 Earnings Presentation
46 slides from Metro's earnings presentation, May 30, 2012
Slide 1: SGX Financial Statement and Related Announcement
FINANCIAL STATEMENT AND RELATED ANNOUNCEMENT Page 1 of 1 Print this page FY2012 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
Slide 2: Metro Holdings Limited FY2012 Results Presentation
METRO HOLDINGS LIMITED FY2012 RESULTS PRESENTATION 1
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, Shanghai • Metro Tower, Shanghai • GIE Tower, Guangzhou • ECMall, Beijing • Frontier Koishikawa Building, Tokyo BEIJING TOKYO List of Investments (HK Listed) SHANGHAI • Shui On Land • Top Spring International GUANGZHOU List of Retail outlets • S
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$’m) (“sqm”) (100%) Metro City, 36 yr term 60% 15,342 39,749 102 96.2 253 (1) Shanghai from 1993 GIE Tower, 50 yr term 100% - 28,390 42
Slide 8: Portfolio Overview
Portfolio Overview Completed Investment Properties under Associated Companies: % owned by the Site Area Lettable Area Occupancy Rate Tenure Group (1) (“sqm”) (“sqm”) (%) (1) Tesco Lifespace, 40 yr term 10.7% 17,537 30,285 93.2 QinHuangDao from 2005 Tesco Lifespace, 40 yr term 10.7% 18,800 32,139 86.
Slide 9: Portfolio Overview
Portfolio Overview Investment Properties Under Development by Associated Companies: % owned by Lettable Area Scheduled Preleased TA Location Tenure Group (1) (sqm) (2) Opening signed Tesco Lifespace, Shenyang, 40 yr term 10.7% 36,600 July 2012 NA PRC from 2007 Shenyang (1) As at 31 March 2012 (2) Es
Slide 10: Property Investment
Property Investment Property Valuation (100%) as at 31 March 2012 and 2011: FY2012 FY2011 FY2012 FY2011 (%) (%) (Rmb’m) (Rmb’m) (S$’m) (S$’m) Metro City, Shanghai (1) 1,267 1,255 +1.0 253 241 +5.0 GIE Tower, Guangzhou (1) 475 473 +0.4 95 91 +4.4 Metro Tower, Shanghai (1) 895 873 +2.5 179 168 +6.5 EC
Slide 11: Occupancy Rate
Occupancy Rate FY2012 (%) FY2011 (%) Metro City, Shanghai 96.2 98.3 GIE Tower, Guangzhou 94.8 95.2 Metro Tower, Shanghai 99.7 84.3 ECMall, Beijing 98.6 89.1 Frontier Koishikawa Building, Tokyo 73.2 73.2 10
Slide 12: Property Investment – Expiry Profile
Property Investment – Expiry Profile Expiry Profile by Gross Rental Income: 1H2013 (%) 2H2013 (%) Metro City, Shanghai 21.5 17.8 GIE Tower, Guangzhou 5.1 42.2 Metro Tower, Shanghai 8.7 23.2 ECMall, Beijing 4.5 13.0 Frontier Koishikawa Building, 23.8 34.2 Tokyo 11
Slide 13: Metro City, Shanghai
Metro City, Shanghai Top 10 Tenants: Total: 96.2% Name of Trade Sector % of total Tenant lettable area Buynow Computer Electronics & IT Retail Tenant Mix by Lettable Area World 19.56% (as at 31 March 2012) Physical Fitness & Leisure & Entertainment/ 10.15% Beauty Centre Sport & Fitness Kodak Cinema
Slide 14: Metro Tower, Shanghai
Metro Tower, Shanghai Top 10 Tenants: Total: 99.7% Name of Trade Sector % of total Tenant lettable area Office Tenant Mix by Lettable Area Exxon Mobil Petroleum & Chemicals 20.55% (as at 31 March 2012) Swatch Group Consumer Products 18.25% Energy Source Others 10.57% KFC F&B 8.45% 23.5% 15.8% Agricu
Slide 15: GIE Tower, Guangzhou
GIE Tower, Guangzhou Total: 94.8% Top 10 Tenants: Name of Trade Sector % of Tenant lettable Office Tenant Mix by Lettable Area area (as at 31 March 2012) Jin Yu Restaurant F&B 12.68% Ericsson Electronics and IT 11.89% Guang Dong Banking, Insurance & 16.5% 15.9% Development Financial Services 10.24%
Slide 16: ECMall, Beijing
ECMall, Beijing Total: 98.6% Top 10 Tenants: Name of Trade Sector % of Retail Tenant Mix by Lettable Area Tenant lettable area (as at 31 March 2012) Golden Jaguar F&B/Food Court 17.95% C&A Fashion & Shoes 5.35% Only/Vero/Moda/ Fashion & Shoes 5.4% Jack&Jones/ 4.43% 2.6% Selected 36.6% H&M Fashion &
Slide 17: Frontier Koishikawa Building, Tokyo
Frontier Koishikawa Building, Tokyo Total: 73.2% Top 10 Tenants: Name of Tenant Trade Sector % of Office Tenant Mix by Lettable Area lettable (as at 31 March 2012) area Shisyutsuhutan-koi Government Tanto-kan Somu- Office 7.3% sho Daijin-kanbo 26.81% 13.7% Kaikei-ka Kikaku- kan Lion F&B 14.58% Wiley
Slide 18: Tesco Projects, China
Tesco 1 Projects, China Ownership Split: Metro Holdings – 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 cl
Slide 19: 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 20: Retail Operations
Retail Operations 19
Slide 21: 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 Band
Slide 22: Financial Highlights
Financial Highlights 21
Slide 23: FY2012 Results Highlights
FY2012 Results Highlights Property division turnover improves; profit boosted by divestment gain (Metro City, Beijing) Growth in rental income offset by a 1% decline in value of the RMB against the SGD Driven by higher rental income from higher occupancy at three main properties – Metro City a
Slide 24: Financial Highlights
Financial Highlights Profit & Loss Accounts: 4QFY12 4QFY11 Change FY2012 FY2011 Change (S$’000) (S$’000) (%) (S$’000) (S$’000) (%) Turnover 48,148 45,350 +6.2 186,995 175,245 +6.7 Profit Before Tax 95,401 25,362 +276.2 115,270 105,516 +9.2 Net Profit Attributable to owners 78,565 14,556 +439.7 91,89
Slide 25: Full Year Financial Summary
Full Year Financial Summary Financial Ratios: FY2012 FY2011 Earnings per share after tax and minority 11.3 10.6 (1) interests (cents) Return on shareholders’ funds (%) 8.64 8.18 Return on total assets (%) 6.40 5.85 Number of issued shares (million) 828.0 781.9 (1) Net asset value per share (cents) 1
Slide 26: 4Q Revenue Breakdown
4Q Revenue Breakdown S$’m Property revenue up 7.2% in 4Q2012 Higher occupancy and rental at Metro Tower and Metro City, Shanghai and 3% increase in the value of the Renminbi against the Singapore dollar Retail turnover rose 5.6% q-o-q Driven by improved consumer sentiments in Singapore Goo
Slide 27: Full Year Revenue Breakdown
Full Year Revenue Breakdown S$’m Property revenue rose 5.6% y-o-y All four properties in Shanghai, Beijing and Guangzhou continue to enjoy high occupancies averaging 97.3% Comparatively higher occupancy rates for Metro Tower, Shanghai and EC Mall in 2012 Retail turnover rose 7.3% y-o-y Bro
Slide 28: Balance Sheet Highlights
Balance Sheet Highlights As at 31 March 2012 As at 31 March 2011 Change (S$’000) (S$’000) (%) Property, plant and 16,490 16,223 +1.6 equipment Investment Properties 550,194 688,452 -20.1 Other Non-current Assets 168,282 197,202 -14.7 Current Assets 702,318 532,113 +32.0 Total Assets 1,437,284 1,433,
Slide 29: Dividend Payout
Dividend Payout 60.0% Gross Cents per Share 54.1% 7.0 50.0% 45.9% 6.0 40.9% 40.0% 5.0 37.7% 31.8% 4.0 4.0 3.0 3.0 3.0 30.0% 3.0 1.0 2.0 20.3% 20.0% 1.0 2.0 2.0 2.0 2.0 2.0 2.0 0.0 10.0% FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 --- Payout Rate Ordinary Dividend Special Dividend 28
Slide 30: Market Outlook
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Slide 31: Market Outlook: China
Market Outlook: China Resilient property market amidst moderated growth in China China's gross domestic product (GDP) registered a year-on-year increase of 8.1 percent, reaching 10.79 trillion yuan (approximately 1.7 trillion US dollars) in the first quarter of 2012; China's GDP grew 8.9 percent
Slide 32: Market Outlook: Shanghai, Office
Market Outlook: Shanghai, Office Office rents continue to surge - DTZ Research, Shanghai Q1 2012, 23 April 2012 The average grade A office transacted rents in Shanghai reached RMB8.70 (US$1.38) per sq m per day at the end of Q1 2012. The city-wide availability ratio reached 5.95%, representing an
Slide 33: Market Outlook: Shanghai, Retail
Market Outlook: Shanghai, Retail Overall city-wide rents for the rest of 2012 to rise - DTZ Research, Shanghai Q1 2012, 23 April 2012 No huge fluctuation of rents in Q1, average high-end retail rents in downtown hubs stand at RMB56.18 per sq m per day; More shopping malls expected to open in the
Slide 34: Market Outlook: Beijing, Retail
Market Outlook: Beijing, Retail Rents expected to witness mild increase in 2012 - DTZ Research, Property Times Beijing ,Q1 2012 In January and February 2012, total retail sales of consumer goods in Beijing amounted to RMB 123.54 billion, up 15.8% y-o-y. With stably improving leasing demand, the
Slide 35: Market Outlook: Guangzhou, Office
Market Outlook: Guangzhou, Office Office rental growth continues - DTZ Research, Guangzhou Q1 2012, 24 April 2012 In Q1 2012, leasing transactions of Guangzhou grade A office remained active; Driven by strong demand, the city-wide availability ratio dropped slightly by 0.49 percentage points to
Slide 36: Market Outlook: Retail, Singapore
Market Outlook: Retail, Singapore Singapore: Cautiously Optimistic Outlook With the continued uncertainty in the Eurozone and the US, Singapore’s economy is expected to slow down this year, according to forecasts released by the Ministry of Trade and Information. Gross domestic product (GDP) growt
Slide 37: Market Outlook: Retail, Indonesia
Market Outlook: Retail, Indonesia Indonesia: Strong domestic consumption to continue The growing middle class and the on-going lifestyle shift by Indonesia’s young and productive demographic segment are predicted to continue encouraging retailers to capitalise on their potential and the sustained
Slide 38: Growth Strategies
Growth Strategies 37
Slide 39: Growth Strategies
Growth Strategies Property Development Retail Operations & Investment Continue to prudently Emphasis on: leverage on: Addition of new specialties shops Rich Retail Experience Enhancing Merchandise Offering Strong Foothold and Improving Customer Service Know-how in China Selection Impleme
Slide 40: Growth Strategies: Property Development and Investment
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 Main
Slide 41: Growth Strategies: Retail Operations
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 Enhance Merchandise Offering Leverage on strong relationships with local and
Slide 42: Growth Strategies: Retail Operations
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 Adopt New Marketing Platform Adopt new Internet (online) technology, with objective to engage and activate custo
Slide 43: Outlook
Outlook 42
Slide 44: Outlook: Property Segment
Outlook Property Segment: Rental income from Group’s mature properties expected to decrease with smaller portfolio Divestment of Metro City Beijing completed in 4QFY2012 Selective positioning, new investments in property development and strategic alliances With a view to broaden revenue stre
Slide 45: Outlook: Retail Segment
Outlook Retail Segment: Seek to improve sales performance amidst challenging retail market conditions Competitive trading scene Rising operational costs Continue to identify new sites for store expansion, both departmental stores and specialty shops New store, Metro Ciputra World Surabaya,
Slide 46: Thank You
Thank You 45