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RESULTS FOR THE HALF YEAR ENDED 30 JUNE 2012
Embargoed until 5.05 p.m.10 August 201210 August 2012
BUSINESS OVERVIEW
BUSINESS SEGMENTSBUSINESS SEGMENTS
ARA ASSET MANAGEMENT LIMITED
REITs Private Real Estate FundsReal Estate
Management ServicesCorporate FinanceAdvisory Services
Revenue ‐Recurrent
BusinessSegments
Portfolio Management Fees
Base Fees(Gross Property Value)
Property Management Fees
(Primary Basis) (Committed Capital / Gross Property Value)
( p y )
Performance / Variable Fees(Net Property Income)
(Property Gross Revenue)
Convention & Exhibition Service Fees(Gross Revenue)
Performance Fees(IRR above Hurdle)
Acquisition / Divestment Fees(Gross Property Value)
Advisory Fees(Purchase Value)
Revenue ‐One‐off(Primary Basis)
Consultancy Fees(Project Value)
Return on Seed Capital
( y )
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FUNDS & SERVICESFUNDS & SERVICESDiversified & complementary fund platforms & services
REITs
Listing Venue SGX‐ST & SEHK SGX‐ST SEHK Bursa SGX‐ST SEHK
Focus Suburban retail properties in Hong Kong
Prime office & retail properties in Singapore
Office & industrial/ office properties in
Hong Kong
Commercial properties in Malaysia
Logistics properties in the Asia Pacific region
Commercial properties in the PRC
Property Value(1) HK$19,268m S$7,554m HK$6,991m RM1,180m S$877m RMB 34,303mProperty Value HK$19,268m S$7,554m HK$6,991m RM1,180m S$877m RMB 34,303m
Private Real Estate Funds
Description Flagship strategic and opportunistic private real
2nd strategic and opportunistic private real
Single‐asset private real estate fund
Core‐plus private real estate fund investing in high
Strategic alliance with Australian specialist
ARA Harmony FundADF ARA Asia Dragon Fund
ADF IIARA Asia Dragon Fund II
CIPARA China
Investment Partners
pp pestate fund investing in Singapore, Hong Kong,
China, Malaysia and other emerging economies in Asia
pp pestate fund investing in Singapore, Hong Kong,
China, Malaysia and other emerging economies in Asia
which owns the Suntec Singapore Int’l Convention & Exhibition Centre
g gquality, income producing office and commercial properties in key cities in China, including Hong Kong
preal estate
investment manager, APN Property
Group(2) for private funds investing primarily inFund Size US$1.1b US$441m S$400m US$500m
Description Property management Operations sales and marketing services provider & consultant for convention
primarily in Australian real estate(Committed Capital) (Committed Capital) (Gross Asset Value) (Initial Committed Capital)
Real Estate Management
Services
Description Property managementservices provider
Operations, sales and marketing services provider & consultant for convention, exhibition, meeting and event facilities
Notes: (1) Property values as of last publicly‐announced valuation(2) ARA currently holds a 13.9% interest in APN Property Group
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Private Real Estate FundsPrivate Real Estate FundsClose to US$1 billion raised ‐Testament to the strength and track record of ARA
Gross investor commitments of US$941 million raised via two separate vehicles
CIPARA China Investment Partners
ADF IIARA Asia Dragon Fund II
Committed capital of US$441 million Initial committed capital of US$500 millionCommitted capital of US$441 million
• Third and final closing, signifying the continuation of the ADF Franchise
Pan Asian opportunistic private real estate fund
Initial committed capital of US$500 million
• Additional capital commitments may be madeavailable upon deployment of initial commitment
Long term core plus separate account vehiclePan‐Asian opportunistic private real estate fund
• Primary focus on retail, office and residential properties in China, Hong Kong, Singapore and Malaysia
• Secondary focus on the same asset classes in key
Long‐term, core‐plus separate account vehicle
• Significant contribution from the California PublicEmployees’ Retirement System (CalPERS)
• Targets high‐quality, income producing office andretail properties in key cities in China including• Secondary focus on the same asset classes in key
cities of other Asian emerging economies
• Fund life of ten years
• Being opportunistic in nature, ADF II will target higher returns
retail properties in key cities in China, includingHong Kong
• Initial term of fund of ten years, with two additionalextension options of six years each
• Fund’s portfolio is expected to grow significantly
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higher returns Fund s portfolio is expected to grow significantlyover time
ASSETS UNDER MANAGEMENTASSETS UNDER MANAGEMENTS$21.8 billion (US$17.2 billion) as at 30 June 2012
20.1
21.822.022.0
REITs ‐Real Estate
Private RE Funds ‐Real Estate
S$b S$b
11.712.9
16.9
12.0
14.0
16.0
18.0
20.0
12.0
14.0
16.0
18.0
20.0Private RE Funds ‐Capital
Real Estate Management Services
3.5
5.46.2
9.5
4.0
6.0
8.0
10.0
4.0
6.0
8.0
10.0
0.60.0
2.0
0.0
2.0
31 Dec 03 31 Dec 04 31 Dec 05 31 Dec 06 31 Dec 07 31 Dec 08 31 Dec 09 31 Dec 10 31 Dec 11 30 Jun 12
Assets Under Management(1) (S$ billion) 30 Jun 2012 31 Dec 2011 Change Notes:(1) Based on exchange rates
t 30 J 2012REITs – Real Estate(2) 15.3 14.8 0.5
Private Real Estate Funds – Real Estate 4.9 4.7 0.2
Private Real Estate Funds – Capital(3) 1.3 0.2 1.1
as at 30 June 2012(2) Comprises gross
property value of REITs managed by subsidiaries & associated companies
(3) Excludes capital committed for projects pending completion
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Real Estate Management Services(4) 0.3 0.3 ‐
Total 21.8 20.1 1.7
pending completion(4) Revenue base for real
estate management services fee computation
FINANCIAL RESULTS
RESULTS SNAPSHOTRESULTS SNAPSHOT20% increase in 1H2012 net profit to S$35.4 million
2 Total revenue rose 21% year on year to S$63 4 million
1 Net profit rose 20% year‐on‐year to S$35.4 million
2 Total revenue rose 21% year‐on‐year to S$63.4 million
3EPS increased 20% to 4.61 Singapore cents per share, from 3.85 Singapore cents in 1H2011
4 Interim dividend of 2.30 Singapore cents per share declared
cents in 1H2011
5Total assets under management (AUM) of S$21.8 billion as at 30 June 2012, up 16% from a year ago
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FINANCIAL HIGHLIGHTS
Financial Highlights 1H2012 1H2011 Change (%)
FINANCIAL HIGHLIGHTS1H2012 Net Profit up 20% year‐on‐year
Revenue
Management fees(1) (S$’000) 47,782 44,661 7%
Acquisition and performance fees(2) (S$’000) 4,663 2,499 87%
Other income(3) (S$’000) 10,978 5,394 104%
Total Revenue (S$’000) 63,423 52,554 21%
Operating Profit (Pre‐Tax) (S$’000) 39,855 33,701 18%
Share of Profit of Associates (S$’000) 2,168 885 145%
Net Profit (S$’000) 35,384 29,571 20%
EPS(4) (S cents) 4 61 3 85 20%
Notes:(1) Recurrent management fees from REITs, private real estate funds and real estate management services(2) P i il REIT i i i / di l f d i l f d / f f
EPS (S cents) 4.61 3.85 20%
AUM(5) (S$ billion) 21.8 18.8 16%
(2) Primarily REIT acquisition / disposal fees and private real estate fund arrangement/performance fees(3) Comprises mainly distribution income from financial assets and gains on disposal of REIT units(4) Based on share capital of 768,319,189 shares as at 30 June 2012(5) Based on exchange rates as at 30 June 2012
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REVENUE ANALYSISREVENUE ANALYSISStrong track record of revenue growth
Hi t i l R R B kd
112.5
122.8
120
140S$m
Recurrent management feesAcquisition & performance feesOther income
63 470
80S$m
REIT mgmt feesPrivate RE fund mgmt feesRE mgmt services feesAcquisition & performance fees
Historical Revenue Revenue Breakdown
70 0
86.3
80
100
5 82.5
4.75.4
11.052.6
63.4
50
60
Other income
+21%
31 3
62.1
70.0
40
6011.5
11.4
6.25.8
30
40
27.631.3
0
20 27.030.5
0
10
20
10
0
FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 FY2011
0
1H2011 1H2012
PROFITABILTY ANALYSISPROFITABILTY ANALYSISStrong track record of profit growth
Hi t i l N t P fit N t P fit
63.8
68.270
80S$m
50S$m
Historical Net Profit Net Profit
48.350
60
29.6
35.4
30
40
+20%
34.036.7
30
40
20
13.4 13.5
0
10
20
0
10
11
0
FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 FY2011
0
1H2011 1H2012
BALANCE SHEET
Group balance sheet as at 30 Jun 2012 S$’000 S$’000Non‐current assets Non‐current liabilities
BALANCE SHEETRobust balance sheet with strong cash position and no debt
Plant and equipment 1,154 Financial liabilities 208 Tenancy deposits 917 Deferred tax liabilities 140 Associates 4,717 Financial assets 108,526
115,314 348 Current assets Current liabilitiesFinancial assets 3,782 Trade and other payables 18,388 Trade and other receivables 29,672 Financial liabilities 118 Cash and cash equivalents 92,911 Derivative liabilities 207
Current tax payable 8,780 126,365 27,493
l li bili iTotal liabilities 27,841
Shareholders’ equity 213,838
Total assets 241 679 Total liabilities & shareholders’ equity 241 679Total assets 241,679 Total liabilities & shareholders’ equity 241,679
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DIVIDENDDIVIDENDConsistent dividend per share
Di idend Per Share (Period)Dividend Per Share (Period)
0 0230.025
0 0230.025
0 023
0.027
0 0230.025
0.030S$
Interim Dividend
#
0.019
0.022 0.022 0.023 0.023 0.023 0.023
0.015
0.020# FY2012 Interim Dividend (S Cents) 2.30
1H2012 EPS (S Cents) 4.61
Payout Ratio (%) 50%#
0.005
0.010Timeline
Ex‐dividend date 24 Aug 2012
Books closure date 28 Aug 2012
# pro‐rated
0.000
2H07 1H08 2H08 1H09 2H09 1H10 2H10 1H11 2H11 1H12
1‐for‐5 1‐for‐10
Payment date 11 Sep 2012
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bonus issue bonus issue
DIVIDEND HISTORYDIVIDEND HISTORYGrowing total dividend
Di id d P id (P i d)Di id d P Sh (FY)*
0.058
0.066
0.060
0.070S$
17.5
20.7
18
20
22 S$m
Dividend Paid (Period)Dividend Per Share (FY)*
0.038
0.0440.048
0.040
0.050
11.1
12.6 13.0 13.414.6
13.4
16.1
10
12
14
16
0.010
0.020
0.030
4
6
8
10
0.000
FY07 FY08 FY09 FY10 FY11* computed based on 582,060,000 shares at listing date, excluding the
shares allotted under the 1‐for‐5 bonus issue in May 2010 and the
‐
2
2H07 1H08 2H08 1H09 2H09 1H10 2H10 1H11 2H11
1‐for‐10 bonus issue in June 2011
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STRATEGYSTRATEGYPoised for the next phase of growth
REITs‐ Work with various partners to launch new REITs in new sectors and geographies
Private Real Estate Funds‐ Explore RMB funds in China
‐ Establish specialist funds for strategic investors
Real Estate Mgmt Services‐ Support REITs and private realestate funds and increaseproperties under management
‐ Existing REITs to continue to focus on asset enhancements and acquisitions
‐ Leverage on the Suntec brandto expand geographical reachof convention services
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MANAGEMENT TEAMMANAGEMENT TEAMExperienced team with a proven track record
Group CEO
John Lim
Group CEO
John Lim
CEO CEOCEOCorporate Divisions
Finance & ComplianceCheryl Seow
Senior Director, Group Finance
Management Services
APM Property MgmtAnthony Yip
Deputy ChairmanSusan Sim
CEO Private MarketNg Beng Tiong
ADF INg Beng Tiong
CEO
CEO Principal Investments
Moses Song
CIPDerek Lai
Senior Portfolio Manager
CEO Public Market
John Lim
Suntec REITYeo See Kiat
CEO
Corporate Finance
Advisory Services
ARA FinancialLow Poh ChooSenior Director
Corporate OfficeNg Beng Tiong
Director
Corp Business DevMoses Song
Susan SimCEO, Singapore
Mun Hon PhengCEO, China
Suntec SingaporeArun Madhok
CEO
ADF IIPaul YiCEO
ARA Harmony FundSiew Siew Hoon
Australia DeskMoses Song
Head
China RMB FundJustina Fan
Fortune REITAnthony Ang
CEO
Prosperity REITMavis Wong Moses Song
Director
Capital MarketsMark ChuDirector
G Ri k M t & IA
CEO
Suntec International
Fund Director
China DeskMun Hon Pheng
Head
CEO
Japan Desk
Mavis WongActing CEO
Cache Logistics TrustDaniel Cerf
CEO
AmFIRST REIT Group Risk Mgmt & IATang Boon KangSenior Manager
Group HR & Corp DevPauline Lim
Senior Manager
India Desk
GCC Desk
AmFIRST REITLim Yoon Peng
CEO
Hui Xian REITTom Cheung
CEO
Group Office AdminSerene Yeo
Senior Manager
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Established Regional NetworkEstablished Regional Network
Tianjin DalianBeijing
• Established regional
Guangzhou
Hong Kong
NanjingShanghai
network spanning 13 cities in the Asia‐Pacific, including 6 cities in the China
Singapore
Kuala Lumpur
Mainland
• Network extends across Singapore, Hong Kong, China, Malaysia
Klang
Ipoh
SingaporeMalacca and Australia
• Staff strength of approximately 1,043(1)
as at 30 June 2012
g
Notes:(1) Inclusive of real estate management
Melbourne
(1) Inclusive of real estate management services business division and employees in joint‐venture entities of the Group and various funds under management
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DISCLAIMERDISCLAIMER
These slides may contain forward‐looking statements that involve risks and uncertainties. Actual future performance, outcomes and results maydiffer materially from those expressed in forward‐looking statements as a result of a number of uncertainties, risks and assumptions. Representativeexamples of these factors include but are not limited to general market and economic conditions, interest rate trends, competition from other realestate investors, changes in operating expenses including employee wages and benefits, changes in government policies, and the continuedavailability of financing in the amounts and terms necessary to support future business. You are cautioned not to place undue reliance on theforward‐looking statements in these slides, which are based on the current view of management on future events. Information from externalsources in these slides has not been independently verified by us nor have the external sources quoted consented to the inclusion of the information.
ContactCheryl SeowSenior Director, Group Financecherylseow@ara.com.hk
Global Headquarters:6 Temasek BoulevardSuntec Tower Four, #16‐02Singapore 038986Singapore 038986
Tel: (65) 6835 9232Fax: (65) 6835 9672
Website: www.ara‐asia.com