CapitaLand Investor Day 2017investor.capitaland.com/newsroom/20171114_072941_C31_SYH... · 2017. 11. 13. · (2) Includes corporate costs. - Bulk sale of The Nassim ($161M); - Higher

14 November 2017

CapitaLand Investor Day 2017

Presentation By Mr. Andrew Lim, Group CFO

2

Resilient Financial Performance

Strong Balance Sheet

Active And Prudent Capital Management

Key Highlights


3

ION Orchard, Singapore


4

YTD September 2017 PATMI Up 69% YOY

Notes:(1) Relates to fair value gain arising from change in use of development projects in China, from construction for sale to leasing as an investment property

729

160

190

173

387

31

579

317

760

0

200

400

600

800

1000

1200

1400

1600

YTD Sep 2016 Revaluations and

impairments

Portfolio gains Operating profits YTD Sep 2017

One-off

21%

(1)

69%25% 23%

1Q17

2Q17

1,283

3Q17

$’M

- Gain from bulk sale of 45

units of The Nassim

(+$161M) and higher

handover from China.

-Higher revaluation gains (+$145M)

mainly from Singapore, China and

Europe properties;

- Lower foreseeable losses and

impairments of $12M (YTD Sep 2016:

$21M mainly relate to China and

Singapore projects).

- Divestment of Innov Tower,

Wilkie Edge, Zenith

Residences, Central Park City

and re-measurement gain

from CMT and CRCT.

Higher PATMI Driven By Portfolio & Revaluation Gains & Improved Operating Performance



5

576

(31) 29

175

545

204

0

100

200

300

400

500

600

700

800

900

YTD Sep 2016 FV arising from change

in use

Recurring Income from

IPs

Residential Profits YTD Sep 2017

(5%) 5% 30%

1H17

2Q17

Plan17 = $828M

3Q17

Growth In Operating PATMI Continues

-Contribution from newly acquired

properties, namely 4 office and

retail properties in Japan.

$’M

Notes : (1) One- off items for YTD Sep 2016: $31M relate to fair value gains from change in use of properties.(2) Includes corporate costs.

- Bulk sale of The Nassim ($161M);

- Higher handover from China

projects, namely Dolce Vita,

Beaufort, One iPark, Riverfront and

Summit Era.

8% Increase In Total Operating PATMI

(Excluding Fair Value Gain From Change In Use & Gain From The Nassim)

YTD Sep17S$749million

30%



6

Divested Assets To Reconstitute Portfolio & Recycle Capital

Divestments SBU/ Consideration

Entity S$ Million

50% stake in One George Street, Singapore CCT 591.6

Ascott Orchard Singapore, Citadines Michel Hamburg and Citadines City Centre Ascott 502.2

Wilkie Edge, Singapore CCT 280.0

Innov Tower, Shanghai CLC 271.0

CapitaMall Anzhen CRCT 232.0

Citadines Biyun Shanghai and Citadines Gaoxin Xi’an ART 174.5 1

Golden Shoe Car Park, Singapore CCT 161.1

Eighteen Japan rental housing properties ART 153.6

Victory SR Trust Units CMT 58.8 2

2,424.8

One George Street, Singapore

Citadines Michel Hamburg

Citadines Biyun Shanghai

Note:The table includes assets divested to unrelated parties and CapitaLand REITs/ fund.

1. Announced on 3 July 2017 and to be completed in 2H 2017.2. Victory SR Trust currently holds certain undivided shares of and in a property in Singapore known as Funan (the “Property”) and will, on completion of

the redevelopment of the Property, hold the strata lot comprised in the Property, which is being developed for serviced residence use.



7

Investments SBU/ Consideration

Entity S$ Million

Asia Square Tower 2 in Singapore CCT 2,115.7

Office and retail assets in Greater Tokyo CMA 636.3

Ascott Orchard Singapore, Citadines Michel Hamburg and Citadines City ART 502.2

Innov Center (formerly known as Guozheng Center), Shanghai CLC 424.1

Quest Cannon Hill and 60% interest in Quest Apartment Hotels Ascott 216.0

DoubleTree by Hilton Hotel New York – Times Square South ART 148.4

The Domain Hotel, Silicon Valley, California Ascott 81.5 1

Hotel Central Fifth Avenue New York Ascott 68.0 2

Victory SR Trust Units Ascott 58.8 3

80% interest in Synergy Global Housing LLC Ascott 46.7

4,297.7

Future deployment

Redevelopment of Golden Shoe Car Park CL, CCT 1,638.0 4

5,935.7

Asia Square Tower 2, Singapore

Yokohama Blue Avenue, Yokohama

Innov Center, Shanghai

Active Capital Deployment

Note: The table includes assets acquired by - CapitaLand from unrelated parties, and - CapitaLand REITs from CapitaLand or unrelated parties

1. To be rebranded to Citadines Cupertino Sunnyvale in 4Q 2018.2. Including the cost of renovation for rebranding into Citadines Fifth Avenue New York.3. Victory SR Trust currently holds certain undivided shares of and in a property in Singapore known as Funan (the “Property”) and will, on completion of

the redevelopment of the Property, hold the strata lot comprised in the Property, which is being developed for serviced residence use. 4. Based on CapitaLand and CCT’s 90% share of the S$1.82 billion estimated total project cost.



8

Plaza Singapura, Singapore


9

Financial Impact Of Consolidating CMT, CRCT and RCSTAs Of 30 Sep 2017

Impact On CapitaLand Group's Balance Sheet

S$ Million Before

Consolidation

Impact After

Consolidation

Total Assets 46,048.5 12,014.3 58,062.8

Total Liabilities 20,630.0 6,182.1 26,812.1

Total Equity 25,418.5 5,832.2 31,250.7

Net Debt To Equity (%) 0.35 0.08 0.43

YTD 30 Sep 2017

Impact On CapitaLand Group's Income Statement

S$ Million Before

Consolidation

Impact After

Consolidation

Revenue 3,228.0 169.2 3,397.2

EBIT 2,285.1 114.8 2,399.9

PATMI 1,271.0 12.0 1,283.0

Basic EPS (cents) 29.9 0.28 30.2

Diluted EPS (cents) 27.8 0.25 28.0



10

Note:1. Total assets excludes cash2. Interest Coverage Ratio = EBITDA/ Net Interest Expenses; Interest Service Ratio = Operating Cashflow/ Net Interest Paid. EBI TDA includes revaluation gain3. Based on put dates of Convertible Bond holders4. On a run rate basis

Interest Coverage Ratio2

Net Debt/Equity

Net Debt/Total Assets1

Interest Service Ratio2

% Fixed Rate Debt

Balance Sheet Remains Robust

Ave Debt Maturity3 (Yr)

NTA per share ($)

FY 2016

0.25

0.41

6.5

10.3

72%

3.3

4.05

YTD Sep 2017

0.26

0.43

9.14

10.24

72%

3.4

4.16

Leverage Ratios

Coverage Ratios

Others


Balance Sheet & Liquidity Position


11

Recently Tapped Market For 10-Years S$500 Million At 3.08%


Well-Managed Debt Maturity Profile (As At 30 Sep 2017)

Well-Managed Maturity Profile(2)

Note:1. Ascott Residence Trust (ART), CapitaLand Commercial Trust (CCT), CapitaLand Mall Trust (CMT), CapitaLand Malaysia Mall Trust (CMMT), CapitaLand Retail China

Trust (CRCT) and RCS Trust (Raffles City Singapore – directly held by CCT and CMT)2. Based on the put dates of the convertible bonds

0.1

0.10.2

3.0

3.8

4.5

2.02.6

1.2 1.40.9

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

9.0

10.0

2017 2018 2019 2020 2021 2022 2023 2024 2025+

S$B

Total

Debt to be repaid or refinanced as planned

REIT Level Debt

Total Group cash balances and available undrawn facilities of CL's treasury vehicles = ~S$9.3 billion

On Balance Sheet Debt Due In 2017 (Excl. On B/S REITs(1)) S$’ billion

To be refinanced 0.1

To be repaid 0.0

Total 0.1


12

0.43

0.65

3Q 2017

Net D/E

Net D/E

Limit

Capacity To Fund Growth

Focus On Optimising Impact

From Every Dollar Of Invested Capital

Debt headroom of ~$3b

SBU’s committed and special requirements of ~$4b



13 CapitaLand Presentation May 2013

Raffles City Beijing, China

Active and Prudent Capital Management

14

% of Total Debt

Note:1. Restated balance to take into account the retrospective adjustments arising from FRS 110.


Strong Ability To Access Capital Markets

32

45

2822 22 21 19 20

14

20

23

1824 24 28 28

3136

48

32

54 54 54 51 53 49 50

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2009 2010 2011 2012 2013 2014 2015 2016 Sep-17

Convertible Bonds Capital Markets Bank Loans

1 1


15

Good Mix Of Fixed And Floating Interest Rates

Note:1. Restated balance to take into account the retrospective adjustments arising from FRS 110.

Well-Mitigated Against Any Interest Rate Increase


6.8 7.5 8.0

13.6

11.1 11.9

11.2 10.6

14.1

3.5 2.9

4.2

3.9

4.8 4.1 4.9

4.3

5.4

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

-

2.0

4.0

6.0

8.0

10.0

12.0

14.0

16.0

18.0

2009 2010 2011 2012 2013 2014 2015 2016 Sep-

17

Fixed Floating

S$’ Billion

$10.3b $10.4b $12.2b $17.5b $15.9b $16.0b $16.1b $14.9b $19.5b

34%28%

34%

22%

30%

66%72%

66%

78%

70%

% of Total Debt

25%

75%

1

70% 72%

1

30%

28%


72%

28%

16

5.0

3.7

3.4 3.53.3 3.2

1.0

2.0

3.0

4.0

5.0

6.0

FY 2012 FY 2013 (Restated) FY 2014 FY 2015 FY 2016 YTD Sep 2017

%

Disciplined Interest Cost Management

Implied Interest Rates1 Kept Low at 3.2%


2

Implied Interest Rate

3 3

Note:1. Implied interest rate for all currencies = Finance costs before capitalisation/Average debt2. Implied interest rate for all currencies before restatement was 4.2%3. Straight annualisation


17

One George Street, Singapore

Conclusion

18

Conclusion

• Well-balanced portfolio enables the Group to maintain stable recurring income operating PATMI

• Prudent capital management ensures sustainable future

growth

• Ability to tap on diversified sources for funds help to preserve financial flexibility


Thank You

Documents

CapitaLand Investor Day 2017investor.capitaland.com/newsroom/20171114_072941_C31_SYH... · 2017. 11. 13. · (2) Includes corporate costs. - Bulk sale of The Nassim ($161M); - Higher