SGX Sector Connect Seminar *20 June 2013*
Singapore • China • Malaysia • Japan • India
SGX Sector Connect Seminar
20 June 2013
CapitaMalls Asia Limited
Asia’s Leading Mall
Developer, Owner and Manager
SGX Sector Connect Seminar *20 June 2013*
Disclaimer
This presentation may contain forward-looking statements that involve assumptions, 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 other developments or companies, shifts in expected levels of occupancy rate,
property rental income, charge out collections, changes in operating expenses (including employee wages, benefits
and training costs), governmental and public policy changes and the continued availability of financing in the
amounts and the terms necessary to support future business. You are cautioned not to place undue reliance on
these forward-looking statements, which are based on the current view of management on future events.
The information contained in this presentation has not been independently verified. No representation or warranty
expressed or implied is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or
correctness of the information or opinions contained in this presentation. Neither CapitaMalls Asia (“CMA”) or any of
its affiliates, advisers or representatives shall have any liability whatsoever (in negligence or otherwise) for any loss
howsoever arising, whether directly or indirectly, from any use, reliance or distribution of this presentation or its
contents or otherwise arising in connection with this presentation.
The past performance of CMA is not indicative of the future performance of CMA.
The value of shares in CMA (“Shares”) and the income derived from them may fall as well as rise. Shares are not
obligations of, deposits in, or guaranteed by, CMA or any of its affiliates. An investment in Shares is subject to
investment risks, including the possible loss of the principal amount invested.
1
SGX Sector Connect Seminar *20 June 2013*
Contents
• Overview of CapitaMalls Asia
• Our Business Model
• Our Strategic Thrusts
• Outlook
The Star Vista, Singapore
Gurney Plaza, Penang
The Star Vista, Singapore
ION Orchard, Singapore
2
SGX Sector Connect Seminar *20 June 2013* 3 Overview of CMA Star Vista, Singapore
SGX Sector Connect Seminar *20 June 2013*
• CapitaMalls Asia (“CMA”) is one of the largest listed shopping mall developers,
owners and managers in Asia by total property value of assets and by geographic
reach
• Listed on SGX and HKEx, total market capitalisation of about S$7.7 bil1
• 1022 shopping malls with a total property value3 of approximately S$32.3 bil2 as at
25 Apr 2013
Gurney Plaza
Penang, Malaysia
ION Orchard,
Singapore
Hongkou Plaza
Shanghai, China The Celebration Mall
Udaipur, India
Olinas Mall
Tokyo, Japan
Note:
(1) As at 25 Apr 2013.
(2) Excludes CMA’s interest in Horizon Realty Fund, which CMA does not manage.
(3) Aggregate property value of the properties in CMA’s portfolio (where the property value of each of the properties is taken in its entirety regardless of the extent of
CMA’s interest).
Overview of CapitaMalls Asia Limited
Asia’s Leading Mall Developer, Owner and Manager
4
SGX Sector Connect Seminar *20 June 2013*
Note: Effective interests in CMT, CRCT & CMMT’s interest in CapitaLand are as at 31 Mar 2013.
(1) Refers to 5 China funds. They are CapitaMalls China Income Fund, CapitaMalls China Development Fund II, CapitaMalls China Development Fund III, CapitaMalls
Incubator Fund and Raffles City China Fund.
Directly Held
Joint Ventures
REIT
Directly Held
Joint Ventures
REIT
Funds1
Directly Held
REIT
CapitaMalls
Japan Fund
CapitaMalls
India
Development
Fund
65.4%
Singapore
China
Malaysia
Japan
India
27.6%
20.6%
35.9%
16.4%
26.3%
45.5%
Directly Held
Joint
Venture
CMA’s Business Structure
5
SGX Sector Connect Seminar *20 June 2013* Our Business Model
Clarke Quay, Singapore
Ph
oto
Cre
dit: K
we
k S
we
e S
eng
, S
ing
apo
re
SGX Sector Connect Seminar *20 June 2013*
Singapore
China
Malaysia
Japan
India
0%
5%
10%
15%
20%
25%
0% 5% 10% 15% 20% 25%
GDP CAGR '06 - '11
Pri
va
te C
on
su
mp
tio
n
4,120
944 1,139
9,978
258
Singapore China Malaysia Japan India
Retail spending per capita (US$)
CMA is located in growing countries… …with low penetration of shopping spend per capita
…and high consumption growth
0%
20%
40%
60%
80%
100%
Singapore China Malaysia India
Organised Traditional
…and low penetration of organised retail
Source: Company data, CICC Research
Source: Euromonitor, 2012; IMF, 2013
Size represents population size
Source: IMF, 2013; World Bank Data, 2013
3.8%
12.6%
7.3%
-0.1%
6.0%
Singapore China Malaysia Japan India
GDP per capita (US$) CAGR 2010 - 2015E
Source: IMF, Apr 2013
Our Value Proposition
Well-positioned for growth opportunities in Asia’s retail sector
7
SGX Sector Connect Seminar *20 June 2013*
India
Tokyo Osaka
China
Penang
Jalandhar
Udaipur
Nagpur
Mangalore Mysore
Cochin
Hyderabad
Hokkaido
Kobe
Japan
Selangor Kuala Lumpur
Malaysia
Singapore
Kuantan
Bangalore
Klang Valley
Zhanjiang Maoming
Dongguan Foshan
Zhaoqing Zhangzhou
Quanzhou
Ningbo Nanchang
Changsha
Yiyang Shanghai Hangzhou
Wuhu Kunshan Suzhou
Yangzhou Rizhao Qingdao
Weifang Dalian
Harbin
Tianjin Beijing
Huhhot
Zibo Anyang Xinxiang
Zhengzhou
Mianyang Deyang
Yibin Chongqing
Xi’an
Chengdu
Wuhan
5 countries
52 cities
102 malls
~ 95.1 mil sq ft of total GFA
> 4,000 staff
One Unique Integrated
Shopping Mall Business
The Scale to Entrench Our Presence
Scale is crucial to establish foothold in a unique Asian retail market
8
SGX Sector Connect Seminar *20 June 2013*
Total of >13,000 leases and strong relationship with both home-grown retail
chains and international brands.
Through Our Industry Leading Retail Network…
9
SGX Sector Connect Seminar *20 June 2013*
Note:
(1) Market capitalization and asset values are as of 5 May 2013 and 31 Mar 2013 respectively.
(2) CAGR is based on offer price, dividend distribution from record date and price as of 5 May 2013
Listed REITs
Listed Company Listed REITs
Investment Focus
Develops and manages
shopping malls, as well as
retail property funds
Invests in income
producing properties
Invests in income
producing properties
Invests in income
producing properties
Country Exposure Singapore, China,
Malaysia, Japan and India
Predominantly
Singapore China Malaysia
Dividend/
Distribution Policy
No mandatory requirement.
But CMA policy to
distribute at least 20% of
annual profit after tax and
non-controlling interests
To distribute not less
than 90% of taxable
income
To distribute not less
than 90% of taxable
income
To distribute not less
than 90% of taxable
income
Gearing No mandatory limit 60% 35% 50%
Development
Exposure Limit No mandatory limit
Maximum 10% of
asset size
Maximum 10% of
asset size
Maximum 10% of
asset size
Proactive capital management to create financial flexibility and capacity
And Multiple Efficient Capital-Raising Platforms
10
SGX Sector Connect Seminar *20 June 2013*
Market cap (1) S$8,055 mil Market cap (1) S$1,285 mil Market cap (1) MYR3,289 mil
Portfolio
15 quality malls
in Singapore of
>S$9.6bil(1)
Portfolio
9 quality malls in
China of
>S$1.6bil1)
Portfolio
4 quality malls
in Malaysia of
>S$1.2bil1)
Listing July 2002 in
Singapore Listing
December 2006
in Singapore Listing
July 2010 in
Malaysia
CapitaMall Qibao, Shanghai Jcube, Singapore
11
Singapore’s first & largest REIT,
with highest “A2” credit rating
Malaysia’s only “pure-play”
shopping mall REIT with a
income- and geographically-
diversified portfolio
Singapore’s first & only
“pure-play” China shopping
mall REIT
Gurney Plaza, Penang
Overview of our Listed REITs
Note:
(1) Market capitalization and asset values are as of 5 May 2013 and 31 Mar 2013 respectively.
SGX Sector Connect Seminar *20 June 2013*
Sourcing Development Mall Management Capital
Management
Ability to source land
bank and investment
opportunities
On the ground
professionals
focused in both land
and project
acquisition
Comprehensive
development
capabilities
Experience in
developing a variety of
malls catering to a
diverse tenant and
customer base
Proven track record in
extracting value through
asset enhancement
initiatives
Ability to fill up malls
rapidly through lease
network and bring in
shoppers to shop through
branding and marketing
activities
“Know-how” in
deploying capital to
enhance productivity
Experience in
creating and
managing private
funds and listed
REITs
Proven
sourcing
capabilities
Deep
development
capabilities
Ability to
deploy capital
efficiently
Proven
operational
expertise
: Recurring Income
Unique Integrated Business Model
Revaluation
Net Property Income
Property Management
Fees
3 Buckets of
Income
Development
Profits
Fund
Management
Fees
1 2 3
12
SGX Sector Connect Seminar *20 June 2013*
Nanjing Impressions,
CapitaMall Crystal, Beijing, China
Our Strategic Thrusts
SGX Sector Connect Seminar *20 June 2013*
19 retail properties with total GFA of 13.2 mil sq ft
Clarke Quay
Bugis Junction Bugis+
The Star Vista
JCube
Plaza Singapura
Funan DigitaLife Mall
IMM Building
Clarke Quay
ION Orchard
Raffles City
Junction 8
Tampines Mall
Singapore: Largest Mall Owner & Manager
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SGX Sector Connect Seminar *20 June 2013* 15
Singapore: 3 New Malls/Properties and
2 Asset Enhancements in 2012*
The Star Vista (90.0% Occupancy) Jcube (99.6% Occupancy) (CMT)
Bugis+ (99.5% Committed)(CMT)*
Note: Occupancy and sales are as of 31 Mar 2013.
The Atrium@Orchard (97.4% Committed)(CMT)*
New
Ma
lls
& P
rop
ert
ies
Bedok Residences (>95% sold)
As
se
t E
nh
an
ce
me
nt
In
itia
tive
s
SGX Sector Connect Seminar *20 June 2013*
Bedok Mall (>85% Committed) Westgate (>60% Committed)
* Artist’s Impression (subject to change)
Strengthening Market Leadership in Singapore
2 new malls scheduled for opening in 2013
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SGX Sector Connect Seminar *20 June 2013*
CapitaMall Saihan,
Huhhot
Raffles City Shanghai,
Shanghai
CapitaMall Fucheng,
Mianyang
CapitaMall Chengnanyuan,
Nanchang CapitaMall TianjinOne,
Tianjin
CapitaMall Jinniu,
Chengdu
CapitaMall Maoming,
Maoming
CapitaMall Xizhimen,
Beijing CapitaMall Minzhongleyuan,
Wuhan
CapitaMall Dongguan,
Dongguan Raffles City Ningbo,
Ningbo
CapitaMall Jiulongpo,
Chongqing
60 shopping malls in 36 cities across China with total GFA of 67.4 mil sq ft
China: Geographically Diversified with Focus
on Key Markets
17
SGX Sector Connect Seminar *20 June 2013*
1
3
4 8
7
6 5
CapitaMall
Wangjing
CapitaMall
Taiyanggong
Raffles City
Beijing
CapitaMall
Anzhen
CapitaMall
Xizhimen
CapitaMall
Crystal
CapitaMall
Cuiwei
CapitaMall
Shuangjig
CapitaMall
Tiangongyuan
2
9
Raffles City
Changning
4
CapitaMall
Qibao
5
6
Minhang
Plaza
Hongkou
Plaza
1 Raffles City
Shanghai
2
3
Luwan
Integrated
Development
9 malls in Beijing 6 malls in Shanghai
Key clusters of Beijing, Chengdu, Chongqing, Shanghai and Wuhan
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Deepening Presence in Key Regions of China
SGX Sector Connect Seminar *20 June 2013*
Key clusters of Beijing, Chengdu, Chongqing, Shanghai and Wuhan
4 malls in Wuhan
1
2
3
4
5
CapitaMall
Jinniu
CapitaMall
Shawan
Raffles City
Chengdu
CapitaMall
Tianfu
CapitaMall
Meilicheng
5 malls in Chengdu
3rd Ring Road
Metro Line 6
Hankou
Wuchang
Metro Line 1
Metro Line 4
Metro Line 2
1 2
3
4
CapitaMall
Wusheng
Gutian site
CapitaMall
1818
CapitaMall
Minzhongleyuan
Hanyang
Deepening Presence in Key Regions of China
19
SGX Sector Connect Seminar *20 June 2013* Note: Occupancy rates are as of 31 Mar 2013.
CapitaMall Taiyanggong, Beijing (97% Occupancy)
CapitaMall Xuefu, Harbin (93% Occupancy)
CapitaMall Xindicheng, Xi’an (99% Occupancy)
20
CapitaMall Wusheng, Wuhan (85% Occupancy)
CapitaMall Rizhao, Rizhao (60% Occupancy)
Raffles City Ningbo, Ningbo (94% Occupancy) Raffles City Chengdu, Chengdu (99% Occupancy)
China: 7 New Malls Opened in 2012
SGX Sector Connect Seminar *20 June 2013*
CapitaMall Meilicheng, Chengdu opened
in 2Q 2013
Opening on 28 Apr 2013 with ~90% occupancy
Expected NPI yield of ~5% after first year of operation
Artist’s Impression (subject to change)
21
SGX Sector Connect Seminar *20 June 2013* 22
Artist’s Impression (subject to change)
Phase 1
CapitaMall Jinniu (Phase 2), Chengdu to
open in 2013
Phase 1 opened in 2006 and Phase 2 opening in 2013.
.
SGX Sector Connect Seminar *20 June 2013*
92%
95%
99%
100% 100%
99%
2007 2008 2009 2010 2011 2012
2.4% 2.7%
5.3%
7.1%
8.7%
10.9%
2007 2008 2009 2010 2011 2012
Net Property Income Yield1 Capital Value (RMB’ million)
23
Occupancy
Opened in
Sep 2006
363 364 394
415 455
524
2007 2008 2009 2010 2011 2012
Note:
(1) Refers to net
property income
yield on cost.
(2) Excludes
supermarket
GTO sales.
752
884
1,033
1,276
2009 2010 2011 2012
Shopper Traffic (‘000) Tenants’ Sales per sq m2 (RMB)
CAGR: 3.6% p.a. CAGR: 20.2% p.a. Due to road
works in 2012
9,213
11,372
14,998 16,606 16,270
13,093
2007 2008 2009 2010 2011 2012
Largest one-stop shopping mall in Jinniu District, Chengdu,
with total GFA of 152,000 sq m.
CapitaMall Jinniu (Phase 2), Chengdu to
open in 2013
SGX Sector Connect Seminar *20 June 2013* 24
CapitaMall Jinniu – A Video Presentation
SGX Sector Connect Seminar *20 June 2013* Outlook
ION Orchard, Singapore
SGX Sector Connect Seminar *20 June 2013*
1Q 2013
Net Debt/Equity
% Fixed Rate Debt
Ave Debt Maturity (Yr)
Cash (S$ mil)
Equity (S$ mil)
FY 2012
80%
6,860
886
26%
4.80
6,738
675
79%
30%
5.01
Change
%
2
31
1
(13)
(4)
Healthy Balance Sheet & Liquidity Position
Net Debt/Total Assets
(Look Through)* 34% 36% (6)
* On effective stake basis. Basis of calculation: (Total Gross Debt – Total Cash)/Total Assets
26
SGX Sector Connect Seminar *20 June 2013*
0
100
200
300
400
500
600
700
2013 2014 2015 2016 2017 2018 >2018
Bank Capital Mkt Bond
10% NAV
(S$’m)
Group Debt Maturity Profile as at 31 Mar 2013
27
SGX Sector Connect Seminar *20 June 2013*
Asia continues to offer superior
economic growth despite lingering
economic uncertainties
Operationally, we are in good position
in 2013:
> 75% of our malls are operational
Malls opened in 2012 to contribute to 2013
earnings
Profit recognition from Bedok Residences in
2013 and 2014
Going forward, CMA is well-positioned:
Strong pipeline of 21 malls under
development to contribute to future earnings
Continue to build on track record of resilient
necessity and suburban malls, as well as
our industry leading leasing network
Strong balance sheet to capitalize on
opportunities
28
Outlook for 2013 and Beyond
SGX Sector Connect Seminar *20 June 2013*
Thank You
For enquiries from analysts & investors,
please contact
For enquiries from Hong Kong/China
analysts, please contact:
Teng Li Yeng
Investors Relations
Tel: (65) 6826 5357
Email: [email protected]
Maggie Huang
Investor Relations
Tel: (86) 10-5879 9018
Email: [email protected]