CapitaMalls Asia Limited Asia s Leading Mall Developer, Owner and Manager Singapore China Malaysia Japan India Annual General Meeting 21 April 2011
Disclaimer This presentation may contain forward-looking statements that involve risks and uncertainties. Actual future performance, outcomes and results may differ materially from those expressed in forward-looking statements as a result of a number of risks, uncertainties and assumptions. Representative examples of these factors include (without limitation) general industry and economic conditions, interest rate trends, cost of capital and capital availability, competition from similar developments, shifts in expected levels of property rental income, changes in operating expenses, including employee wages, benefits and training, property expenses and governmental and public policy changes. You are cautioned not to place undue reliance on these forward-looking statements, which are based on CMA s current view of future events. The value of shares in CMA and the income derived from them may fall as well as rise. Shares are not obligations of, deposits in, or guaranteed by, the Manager or any of its affiliates. An investment in shares is subject to investment risks, including the possible loss of the principal amount invested. The past performance of CMA is not necessarily indicative of the future performance of CMA. 2
Contents Introduction Business Overview Capital Management Going Forward 3
Introduction 4
Jalandhar Udaipur Bangalore Mangalore Mysore Cochin 5 Asia s Leading Shopping Mall Developer, Owner and Manager Notes 1. As at 31 Mar 2011 India Nagpur Hyderabad Pan-Asian Footprint Across 49 Cities in 5 Countries China Huhhot Anyang Xinxiang Beijing Tianjin Zibo Weifang Rizhao Zhengzhou Yangzhou Mianyang Xi an Wuhu Kunshan, Shanghai, Deyang Yiyang Wuhan Ningbo, Hangzhou Chengdu Nanchang Yibin Chongqing Changsha Quanzhou Zhaoqing Zhangzhou Maoming Foshan, Dongguan Zhanjiang Malaysia Penang Kuala Lumpur Selangor Singapore Dalian Harbin Kobe Japan Eniwa Chitose Tokyo, Funabashi Osaka 92 Retail Properties (1) 73.7 million sq ft of Retail Space (1) More than 3,000 staff More than 9,000 leases
Business Overview 6
Macro Environment 7
Strong Results in 2010 8
Committed an Investment of S$2.0b in 2010 Meili Mall, Chengdu S$107m Tianfu Mall, Chengdu S$368m Bedok site, Singapore S$672m Luwan site, Shanghai S$495m Queensbay, Penang S$276m Changning site, Shanghai S$268m Feb Feb 10 10 Mar 10 Jul 10 Jul 10 Sep 10 Nov 10 Dec 10 Sale of Clarke Quay, Singapore to CMT for S$268m Listing of CMMT Proceeds of S$228m raised 9
Growing Our Presence in Key Markets With 2 Acquisitions in Chengdu, China 1 GFA of 212,684 sq m 2 GFA of 58,350 sq m Tianfu Mall, Chengdu Meili Mall, Chengdu 10
3 1 in Shanghai (Luwan), China, Strategically Located in Key Residential & GFA of 127,564 sq m ~ 1million residents within 3km radius Luwan site Luwan site, Shanghai 11
3 Commercial District, above 2 Subway Lines GFA of 127,564 sq m 5 mins drive to Huai Hai Road (high-end shopping district) Raffles City Shanghai Luwan site Xintiandi Subway Line 9 2km Subway Line 13 12
1 in Shanghai (Changning), China 4 GFA of 237,327 sq m Located near to Hongqiao Transportation Hub with 3 subway lines (Line 2, 3 & 4) Raffles City Changning, Shanghai 13
1 in Singapore 5 GFA of 87,158 sq m Bedok site, Singapore 14
Largest Residential Population in Singapore 15
Prime Location next to MRT in a Mature Estate 16
& 1 in Penang, Malaysia 6 GFA of 85,115 sq m Penang s biggest mall Queensbay Mall, Penang 17
Monetised Clarke Quay in Singapore Clarke Quay, Singapore 18
Listed CapitaMalls Malaysia Trust (CMMT) in Malaysia Allow us to grow in Malaysia Gurney Plaza, Penang The Mines, Selangor Penang Selangor Malaysia Kuala Lumpur 19 Sungei Wang Plaza, Kuala Lumpur
Operational Malls Continue to Perform Well with Close to 100% Occupancy As at 31 Dec 2010 No. of Operational Shopping Malls Occupancy Rate (2) Singapore 15 99.0% China 38 96.1% Malaysia 4 98.3% Japan 7 95.1% India 1 90.6% Note: The table above excludes completed malls that were operational for less than a year as at Dec 2010. The above figures are on a 100% basis, where NPI yield and occupancy of each mall is taken in its entirety regardless of our interest. (1) Refers to weighted average yield of our operational malls based on valuation as at 31 Dec 2010, computed by using the annualised net property income. (2) Refers to the weighted average committed occupancy rate as at 31 Dec 2010. 20
Strong Tenant Sales & Shopper Traffic of Operational Malls Country FY2010 vs FY2009 (%) Shopper Traffic Tenant Sales Singapore (1) 3.8 6.4 China (2) 10.7 20.0 Malaysia (3) 18.5 - Japan (4) 7.7 18.5 India (5) 32.0 73.0 (1) Excludes ION, Hougang Plaza, JCube & The Atrium@Orchard (2) Includes only those malls in operation since Jan 2009, while excluding 3 malls under CRCT in master lease. Tenant sales not on same tenant basis, and excludes the Tenant sales from supermarket and department stores. Tenant sales per sq ft is based on the Committed NLA as at 30 Jun 2009 and 2010,and excludes the committed NLA from supermarket and department stores. (3) Tenant sales figures unavailable (4) Excludes Ito Yokado for shopper traffic and tenant sales includes Vivit Square and Chitose Mall only (5) Forum Value Mall opened in Jun 2009. Hence, % change is 2H2010 vs 2H2009 21
Singapore: ION Orchard and Orchard Residences Lot One ION Orchard The Orchard Residence 22
The Orchard Residences 23
ION Sky 55 th & 56 th Floor on Top of ION Orchard 24
Opened 5 China Malls in 2010 Cuiwei Mall, Beijing Aidemengdun Mall, Harbin Xinxiang Mall, Xinxiang Anyang Mall, Anyang 25 Jinshui Mall, Zhengzhou
Opening 5 Malls in 2011 Xuefu Mall, Harbin Rizhao Mall, Rizhao Ximao Mall, Beijing Beijing Harbin RIzhao Shanghai Hongkou Plaza, Shanghai Minhang Plaza, Shanghai 26
Pipeline of Malls Opening in the Next 3-5 Years Countries (1) As at 31 Mar 2011 Completed Target for opening in 2011 No. of Properties 1 Target for opening in 2012 Target for opening in 2013 & beyond Singapore 16-2 1 19 China 38 5 5 5 53 Malaysia 4 - - - 4 Japan 7 - - - 7 India 1 1-7 9 Total Total 66 6 7 13 92 27
Capital Management 28
Balance Sheet & Liquidity Position 31 Dec 10 Equity (S$mil) Cash (S$mil) % Fixed Rate Debt Ave Debt Maturity (Yr) 5,888 1,318 71% 4.45 Note: Out of our $1.3 b cash, $1.1 b has already been committed for investments made but not paid 29
Sufficient Capacity to Support Growth S$2.3 b S$1.0b of potential debt based on ~30% Debt/Equity for future acquisitions ^S$1.0 b S$1.1 b S$1.3 b Cash @ Dec 10 S$1.1 b (estimated) Others Gurney Plaza Queensbay Bedok Project One North Raffles City Changning Luwan Project Current Cash @ + Potential Dec'10 Debt^ Outstanding Equity Commitment 30
400 300 200 100 - Group Debt Maturity Profile 2011 2012 2013 2014 2015 2016 >2016 Total Credit Facilities 1,562 Amount Drawn 700 Undrawn Facilities 862 Cash 1,318 Total Liquidity 2,180 S$75m Retail Bond S$125m Retail Bond China Singapore Diversifying our funding sources Issued S$350m 3.95% notes due 2017 Issued 1yr (1%) & 3yrs (2.15%) retail bonds in Jan 2011 Note: Figures as at 31 Dec 2010 31
Dividend Details Dividend Period 1 Jan 2010 to 31 Dec 2010 First and final dividend (SGD) 2.0 cents Last Day of Trading on cum Basis Books Closure Date 27 April 2011 3 May 2011, 5.00 pm Dividend Payment Date 18 May 2011 32
Going Forward 33
Focus on Our 3 Key Markets Target S$2.0 billion for acquisitions in 2011 Singapore Malaysia China Extend our leadership position Consolidate shopping mall industry Enhance our early mover advantage 34
China, in Particular, Presents Significant Growth Opportunities for the Retail Sector 1 Rising urbanisation rate (%) 3 Strong investment in transportation (RMB bn) 2 Rising income creating stimulus for consumption 4 Retailers continue to enjoy strong sales Disposable income per Capita (RMB) (RMB bn) 35 Source: DTZ China
Operational Malls: <40% of China Portfolio By Effective Interest By Property Value : S$4.0bn By Net Asset Value (NAV) (*) : S$2.4bn Year of Opening No of Malls % of Portfolio by Effective Property Interest 2013 3 malls 19% >2013 2 malls 19% 2012 5 malls 12% Walmart Anchored, 22 malls 15% 2011 5 malls 15% Others 16 malls 20% 2013, 7% >2013 27% (1) 2012 10% 2005 7% (2) 2006 12% (3) 2007 4% 2008 4% 2011 19% 2009 6% 2010 6% Malls: 53 Operational Malls: 35% by value Malls: 53 Operational Malls: 38% by NAV 36 Projects under development. Property value is calculated based on total estimated project cost. Operational malls as at 31 Dec 2010 (i.e. malls opened in 2010 and before) Note: The weighted average age by effective property interest of our operational malls is 3 years (from year of opening). (1) Includes S$450m of capital commitment for Luwan project and Raffles City Changning (2) Includes Raffles City Shanghai (3) Includes malls under or previously under master lease namely Jiulong Mall, Anzhen Mall, Zhengzhou Mall and Saihan Mall (*) Numbers and percentages are rounded for presentation purposes
Strong Growth Potential in Property Valuation in China Valuations in China still a Fraction of that in Singapore 26 more projects to be completed 100 malls in China Singapore China Malaysia Japan India Property value per sq ft (GFA) (S$) (1) % GFA contribution as % of total effective GFA Notes: Relates to properties that were completed as at 31 Dec 2010. (1) 100% basis refers to the aggregate property values and GFA of the properties in the portfolio (where the property value and GFA of each of the properties is taken in its entirety regardless of the extent of CMA s interest) 37
Malls Exhibit Robust Net Property Income Growth Momentum and Potential 2005 1 3.8% 3.9% +5.4% +91% 2.1% 1.1% 4% 1 of NAV -0.7% -1.7% +57% 3.3% +15% +9% +23% 2006 2 2.9% +48% 4.3% 5.3% 5.8% 5.1% +22.3% 8% 2 of NAV -1.7% 38 Year of Opening 2005 2006 2007 2008 2009 2010 Tenant Sales Growth (FY10 vs. FY09). Tenants sales are calculated on a same-mall basis (100%) and excludes sales from supermarkets and department stores. (1) Excludes Raffles City Shanghai (2) Excludes malls under or previously under master lease namely Jiulong Mall, Anzhen Mall, Zhengzhou Mall and Saihan Mall Net Property Income Yield on Cost Net Property Income Yield on Valuation (31 Dec 2010)
Malls Exhibit Robust Net Property Income Growth Momentum and Potential +16% +25% 2007 +18.2% 5.5% 4.4% 4% of NAV 6.4% 5.6% -0.05% -0.05% 2008 4% of NAV Dalian s asset enhancement in 2009-10, expected to complete in mid 2011 +16% 2.5% 2.9% 2.7% +34.1% -1.0% 2005 2006 2007 2008 2009 2010 Year of Opening Tenant Sales Growth (FY10 vs. FY09). Tenants sales are calculated on a same-mall basis (100%) and excludes sales from supermarkets and department stores. Net Property Income Yield on Cost Net Property Income Yield on Valuation (31 Dec 2010) 39
Malls Exhibit Robust Net Property Income Growth Momentum and Potential 2009 3.5% 3.0% 6% of NAV -0.4% 2010 6% of NAV -1.0% 2005 2006 2007 2008 2009 2010-1.0% Year of Opening Net Property Income Yield on Cost Net Property Income Yield on Valuation (31 Dec 2010) 40
Conclusion 41
2011 & Beyond 2010 In Summary Strong financial results for FY2010 with PATMI of S$421.9 m Underlying growth remains strong Shopper traffic and tenant sales continues to grow Opened 5 China malls Acquired 4 sites in China, 1 in Singapore, 1 in Malaysia & monetised Clarke Quay and listed CMMT Continue to ride on Asia s growing consumerism Huge potential in China: Rising urbanisation and income Retail property valuation still a fraction to that in Singapore 26 more projects to be opened in next few years Target 100 malls in China in next 3-5 years Actively seek acquisition opportunities 42
Thank You 43