2009 Full Year Results Briefing - UOL Group Limited · Revenue 12% to $1 billion • higher...

2009 Full Year Results Briefing23 February 2010

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• 2009 IN SUMMARY • RESULTS OVERVIEW• PERFORMANCE REVIEW• PROSPECTS• Q&A

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UOL GROUP LIMITED • 2009 IN SUMMARY• RESULTS OVERVIEW

GWEE LIAN KHENGGROUP CHIEF EXECUTIVE

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Presenter

Presentation Notes

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• Revenue crossed $1 billion for the first time (excluding share of sales revenueof 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, stayed launch ready and caught tail wind of recovery

• Proxy play of office market with strategic acquisition of UIC stake

• Timely replenishment of development sites

• Enhanced margins of development projects by locking in construction cost in down cycles

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Presenter

Presentation Notes

Suggest this be the summary of macro environment against which the results will be reviewed.

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 investments and share of

profits from associated companies

PATMI 188% to $424.2m • negative goodwill on acquisition of UIC shares• inclusive of fair value losses

ROE 137% to 10.2%• improved earnings and negative goodwill

Total Assets 20% to $7,328.0m• new acquisition of land, increased stake in UIC and fair value gains on

available-for-sale financial assets

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S$m FY 2009 FY 2008 % Change

Revenue 1,007.1 899.2 +12

Operating profit before fair value (losses)/gains of associated companies 429.9 351.5 +22

Negative goodwill on acquisition of an associated company 281.1 - n.m

Impairment of property, plant and equipment (3.8) (37.0) (90)

Fair value losses on investment properties (147.6) (106.8) +38

Profit before tax 493.5 210.4 +135

PATMI 424.2 147.2 +188

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FY 2009 FY 2008 Change %

Earnings per share before fair value and other gains/ (losses) 42.0 cents 31.6 cents +33

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 gains/ (losses) 8.0% 7.4% +8

Return on equity 10.2% 4.3% +137

Dividends per share (Ordinary) 10.0 cents 7.5 cents +33

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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 (including interest capitalised)

9 Xs 10 Xs -

Ave debt maturity (Yr) 1.9 years 2.2 years -

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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

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2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 CAGR %

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 21.7

Net debt Equity Ratio 0.52 0.59 0.53 0.42 0.16 0.19 0.20 0.21 0.42 0.43 -0.6

Return on Equity (%) 3.73% 4.01% 9.50% 4.45% 19.90% 4.23% 10.76% 19.23% 4.34% 10.23% 11.8

Total Assets ($m) 3,470.9 3,316.4 3,075.3 3,059.2 3,478.1 3,520.2 4,651.9 6,182.3 6,093.6 7,328.0 8.7

NAV per share 3.28 2.83 2.77 2.52 2.40 2.96 3.95 4.91 4.22 5.25 5.3

EPS – Basic (cents) 12.2 11.5 26.3 12.8 50.7 12.6 42.8 95.4 18.5 53.7 17.8

Market Capitalisation ($m) 916.0 1,035.9 987.6 1,337.7 1,602.0 1,991.0 3,449.9 3,598.2 1,767.3 3,189.0 14.9

A Decade of Growth

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UOL GROUP LIMITED • PERFORMANCE REVIEW • PROSPECTS

LIAM WEE SIN CHIEF OPERATING OFFICER

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($m)

Property development

Property investments

Hotel operations Dividend Income

Management services

533.8

141.7

294.5

21.2 15.9

379.2

126.1

339.0

30.8 24.1

FY 2009FY 2008

+ 41%

+ 12%

- 13%

- 34%- 31%

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Key Revenue DriversVariance 2009 vs 2008

($m)



Hotel operations

Dividend Income

Management services

155.1

100.6

44.2

20.93.0

122.9

76.2 71.3

30.7

6.0

FY 2009FY 2008

+ 26%

+ 32%

- 38%

- 49%- 32%

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Key Profit DriversVariance 2009 vs 2008

Revenue Total Asset Value

($m)

1,007.1 899.2 7,328.0 6,093.5

13%

87%

316.4 299.5

FY2009 FY2008

6,500.5 5,314.7

827.5 778.8

FY2009 FY2008

774.7 645.0

232.4 254.228%23%

77%72%

17%

83%

FY2009 FY2008

279.6 247.9

36.8 51.6

Local International

11%

89%

12%

88%

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Segmental Operating Profit


$379.2m 42%


$126.1m14%

Hotel operations$339.0m

38%

Management services $24.1m

3%

Investments $30.8m

3%

FY 2008


$533.8m 53%


$141.7m14%

Hotel operations $294.5m

29%


2%Investments

$21.2m2%

FY 2009

Property Development

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533.8

379.2

FY 2009 FY 2008

+ 41%


$155.1m 48%


$100.6m 31%

Hotel operations

$44.2m14%


1%Investments

$20.9m6%

FY 2009


$122.940%


$76.2m 25%

Hotel operations

$71.3m23%


2%

Investments $30.7m

10%

FY 2008

Property Development

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155.1

122.9

FY 2009 FY 2008

+ 26%

No. of UnitsSold

Sales Value$m

Total Floor Area (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%.

Record sale of over 1,000 residential units and sales value of $1.2 billion

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• Located along Simei Street 4 near ChangiBusiness Park

• 646 apartment units • Launched in March 2009• 92% SOLD as at 31 Dec 2009• Average price $652 psf (approx.)

Meadows@PeirceDouble Bay Residences

• Located along Upper Thomson Road• 479 apartment units • Launched in July 2009• 73% SOLD as at 31 Dec 2009• Average price $868 psf (approx.)

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New launches tap rising demand in mass and mid-markets

• Located along Upper East Coast• 88 unit boutique development • Launched in May 2008• SOLD OUT

Nassim Park Residences Breeze by the East

• Super-luxury development • 100 exclusive apartments • Launched in June 2008• 85% SOLD as at 31 Dec 2009• Average price $2,898 (approx.)

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Nassim Park Residences

Sold out of Breeze by the East and strong sale for Nassim Park Residences

Launched No. of Units Units sold* (as at 31.12.09)

Average psf

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% RM992

Panorama

Breeze by the East Nassim Park Residences Double Bay Residences

Sale status of launched projects

* Based on sales and purchase agreement signed.20

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, approx. 172 units

• 50% stake

New acquisitions through GLS and JV

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Project Name/Location Tenure of Land

Site Area (sq m)

Est. Saleable Area(sq m)

Est. No. of Units

% Owned

Site at Dakota Crescent 99 17,190 59,280 616 100

‘Spottiswoode Park/ Oakswood Heights’ at Spottiswoode

FH 9,605 27,850 350 100

Site at Toh Tuck Road 999 12,093 19,750 172 50

Total 38,888 106,880 1,138

Over 1,000 pipeline residential units in Singapore

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Project Name/Location Site Area (sq m)

Est. Saleable Area (sq m)

Est. No. of Units

% Owned

Tianjin (Hai He)*Mixed development

22,895 56,140 520 90

KL (Jalan Conlay) 15,986 81,220 494 60

Total 38,881 137,360 1,014*Mixed development consisting of 538 apartments, a 328-room hotel, 17,600 sq m of office and 9,800 sq m of retail space.

Over 1,000 pipeline residential units in international

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Tianjin Jalan Conlay

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

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one-north Residences

Pavilion 11

Two residential TOPs in 2009

Project Name % Equity Stake

No. of Units

Saleable Area

(sq m)

% Sold(as at 31.12.09)

% Complete

(as at 31.12.09)

Approx. TOP Date

One Amber 30 562 68,740 100 76 1Q2010

The Regency at Tiong Bahru 60 158 18,200 100 95 1Q2010

Southbank 70 273 24,160 100 91 1Q2010

Duchess Residences 70 120 19,800 99 66 3Q2010

Breeze by the East 100 88 16,120 100 40 4Q2010

Nassim Park Residences 50 100 38,440 85 32 4Q2010

Panorama 55 223 24,930 88 31 1Q2011

Meadows@Peirce 100 479 66,270 73 21 3Q2011

Double Bay Residences 60 646 77,530 92 5 2Q2012

Profit recognition of launched projects(Only for pre-TOP)

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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 Commended) • Asia Pacific Residential Property Awards for Best

Architecture

Meadows@Peirce, Singapore • Green Mark Award (Gold) by BCA

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2009 Awards for residential projects

one-north Residences

Newton Suites


$379.2m 42%


$126.1m14%

Hotel operations$339.0m

38%


3%

Investments $30.8m

3%

FY 2008


$533.8m 53%


$141.7m14%

Hotel operations $294.5m

29%


2%

Investments$21.2m

2%

FY 2009

Property Investments

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141.7

126.1

FY 2009 FY 2008

+ 12%


$155.1m 48%


$100.6m 31%

Hotel operations

$44.2m14%


1%

Investments $20.9m

6%

FY 2009


$122.940%


$76.2m 25%

Hotel operations

$71.3m23%


2%

Investments $30.7m

10%

FY 2008


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100.6

76.2

FY 2009 FY 2008

+ 32%

Properties Net LettableArea

(sq m)SingaporeNovena Square 57,197United Square 45,749Odeon Towers 18,360Faber House 3,866

Total 125,172Pipeline

Tianjin (Hai He)Mixed development

18,492

Grand Total 143,664 Velocity@Novena Square United Square

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Lease Renewal% Change in

Overall Average Rent FY09 vs FY08

% of Lease Expiry in

2010*

% of Lease Renewed

as at 31.12.09

Offices Novena Square +4 68 80United Square +18 35 17Odeon Towers +26 30 12Faber House +3 51 10Shopping MallsVelocity +4 30 32United Square +10 31 17* % of Lease is based on total net lettable area.

Tenancy Management

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• Office rental renewal increase of between 3 and 26%• Retail rental renewal increase of between 4 and 10%

Novena Square United Square Odeon Towers Faber House

98%

93% 93%

95%

YTD 31.12.09

NLA 57,197 45,749 18,360 3,866(sq m)

Above 90% occupancy for all commercial properties

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Lease Expiry by Property

Novena Square United Square Odeon Towers Faber House

58%

33%30%

51%

24%28%

32%26%

17%

29%

12%15%

201020112012

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As at 31 December 2009, 55% of office leases and 24% of retail leases expiring in 2010 renewed.

Industry/ Sectors Office space (%)FMCG 17Electronics, IT, Telco 11Property & Construction 11Banking, Insurance & Finance 8Energy & Resources 7

Industry/ Sectors Retail space (%)Food & Beverage 26Sports & Fitness 14Education 13Fashion & Accessories 12Health, Beauty & Wellness 10

Commercial Tenant Mix

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• Well diversified commercial tenant mix• Possibility of increased F&B in 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 Management Award 2009

Velocity@Novena Square• Asian Youth Games mascot unveiling

• Meet-the-fans event with Liverpool players

• Velocity Beach Festival won the Singapore RetailersAssociation’s Best Retail Event of the Year Award in 2008

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Velocity@Novena Square

United Square

A&P programmes and Awards for retail malls

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 Park Residences and UIC as an associated

company

• $154.4 million vs $61.8 million in FY 2008 excluding fair value loss/gain

• Fair value losses of properties of $66.1 million reduces share of profits to $88.3 million

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PROSPECTS

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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 markets- Rapid urbanization drives demand in China - Real wealth created by strong GDP growth- Strong home ownership aspiration- Healthy fiscal balance

Singapore property outlook remains resilient- Residential property expected to stay resilient in view of the IR factor, population

factor, the strong fundamentals and remaking of Singapore- Retail and office rents expected to face challenges due to impending supply

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Property Development Property Investments

Hospitality

Market diversificationAchieve more balanced geographic contributions. Scale up portfolio in China and Vietnam.

Business expansionExpand landbank through acquisitions and JVs.

Healthy pipeline of residential properties to be launched.

Strong earnings visibility

Build strong brand recognition Innovative and quality developments in niche locations.

Strategic expansion to broaden capabilities and grow earnings.

Brand recognition of United Square and Velocity as themed malls.

Asset enhancement improve tenant mix to increase yield and long term capital value.

2010 office lease renewal 55% committed.

New income contribution from PARKROYAL Serviced Residences in KL and stronger contribution from Pan Pacific Serviced Suites in Singapore.

Hotel Plaza Limited was renamed to Pan Pacific Hotels Group Limited which owns and manages hotels.

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Strategic Investments

UIC, UOB and PPHG.

This presentation may contain forward-looking statements or financial information. Such forward-looking statements andfinancial information may involve known and unknown risks, uncertainties, assumptions and other factors which may cause theactual results, performance or achievements of UOL Group Limited, or industry results, to be materially different from anyfuture results, performance or achievements expressed or implied by such forward-looking statements and financialinformation.

Such forward-looking statements and financial information are based on assumptions including (without limitation) UOL GroupLimited’s present and future business strategies, general industry and economic conditions, interest rate trends, cost of capitaland capital availability, availability of real estate properties, competition from other companies, shifts in customer demands,customers and partners, changes in operating expenses (including employee wages, benefits and training), governmental andpublic policy changes and the continued availability of financing in the amounts and the terms necessary to support futurebusiness activities.

You are advised not to place undue reliance on these forward-looking statements and financial information, which are basedon UOL Group Limited’s current views concerning future events.

UOL Group Limited expressly disclaims any obligation or undertaking to release publicly any updates or revisions to anyforward-looking statements or financial information contained in this presentation to reflect any change in UOL Group Limited’sexpectations with regard thereto or any change in events, conditions or circumstances on which any such statement orinformation is based, subject to compliance with all applicable laws and regulations and/or the rules of the SGX-ST and/or anyother regulatory or supervisory body.

This presentation may include market and industry data and forecasts. You are again advised that there can be no assuranceas to the accuracy or completeness of such included information. While UOL Group Limited has taken reasonable steps toensure that the information is extracted accurately and in its proper context, UOL Group Limited has not independently verifiedany of the data or ascertained the underlying assumptions relied upon therein.

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THANK YOU

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2009 Full Year Results Briefing - UOL Group Limited · Revenue 12% to $1 billion • higher...

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