2011 Full Year Results Briefing
24 February 2012
1
• KEY FINANCIALS
• 2011 HIGHLIGHTS
• PERFORMANCE REVIEW
• GOING FORWARD
• Q&A
2
UOL GROUP LIMITED
• KEY FINANCIALS
• 2011 HIGHLIGHTS
GWEE LIAN KHENG
GROUP CHIEF EXECUTIVE
3
S$m FY 2011 FY 2010
(Restated) % Change
Revenue 1,960.2 1,349.1 +45
Profit before fair value and other gains/(losses) 727.8 551.2 +32
Other (losses)/ gains -19.7 50.8 -139
Fair value gains on associated companies’
investment properties 9.1 152.9 -94
Fair value gains on the Group’s investment
properties 187.2 134.9 +39
Profit before income tax 904.4 889.8 +2
PATMI 664.2 755.9 -12
4
The results for 2010 were restated due to the adoption of the INT FRS 115 accounting standards which took effect on 1 January 2011.
Record revenue of $1.96 billion, 45% • higher recognition of revenue from sale of residential projects
• inclusion of revenue from PARKROYAL Serviced Suites Kuala Lumpur and
PARKROYAL Melbourne Airport hotel
Profit before fair value and other gains/ (losses) 32% to
$727.8m • double-digit growth in profit contribution across all business segments
• lower share of profit from associated companies and higher finance expenses
PATMI 12% to $664.2m • higher minority interests and higher income tax expense
• lower fair value gains on investments properties of associated companies
5
FY 2011 FY 2010
(Restated) % Change
Earnings per share before fair value and other
gains/(losses) 69.49 cents 56.32 cents +23
Earnings per share 86.25 cents 96.94 cents -11
Net tangible asset value per share $6.54 $5.91 +11
Return on equity before fair value and other
gains/(losses) 10.6% 9.5% +12
Return on equity 13.1% 16.3% -19
Dividends per share - First and Final 10.0 cents 10.0 cents -
- Special 5.0 cents 5.0 cents -
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The results for 2010 were restated due to the adoption of the INT FRS 115 accounting standards which took effect on 1 January 2011.
FY 2011 FY 2010
(Restated) % Change
Total equity $5,529m $5,048m +10
Cash $297m $313m -5
Net debt $2,029m $1,877m +8
Gearing ratio 0.37 0.37 -
Average borrowing cost 2.27% 1.99% +14
% Term loan 79% 72% +10
Interest cover (including interest capitalised)
13 Xs 19 Xs -
Ave debt maturity (Yr) 1.4 years 1.5 years -
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The results for 2010 were restated due to the adoption of the INT FRS 115 accounting standards which took
effect on 1 January 2011.
Maturity profile (as at 31.12.11)
$m %
Within 1 year 1,267 54
1-2 years 203 9
2-3 years 585 25
> 3 years 271 12
Total Debt 2,326 100
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2002 2003 2004 2005 2006 2007 2008 2009 2010 (Restated)
2011 CAGR
%
Revenue ($m) 509.0 461.9 461.2 505.5 605.1 713.5 899.2 1,007.1 1,349.06 1,960.2 16.2
Profit before fair value
and other gains/(losses)
($m)
119.7 107.6 128.3 149.3 158.6 273.3 351.5 429.9 551.2 727.8 22.2
Profit before income tax
($m) 200.1 115.9 485.6 149.8 406.8 938.8 210.4 493.5 889.8 904.4 18.2
PATMI ($m) 161.4 78.8 381.6 100.1 339.4 758.9 147.2 424.2 755.9 664.2 17.0
Gearing Ratio 0.53 0.42 0.16 0.19 0.20 0.21 0.42 0.43 0.37 0.37 n.m
Return on Equity 9.5% 4.5% 19.9% 4.2% 10.8% 19.2% 4.3% 10.2% 16.3% 13.1% 3.7
Total Assets ($m) 3,075.3 3,059.2 3,478.1 3,520.2 4,651.9 6,182.3 6,093.6 7,328.0 7,904.0 8,524.4 12.0
Net tangible asset value
per share ($) 2.77 2.52 2.40 2.96 3.95 4.91 4.22 5.25 5.91 6.54 10.0
Earnings per share
(cents) 26.3 12.8 50.7 12.6 42.8 95.4 18.5 53.7 96.94 86.25 14.1
Market Capitalisation
($m) 987.6 1,337.7 1,602.0 1,991.0 3,449.9 3,598.2 1,767.3 3,189.0 3,694.3 3,073.0 13.4
Dividend Yield (%) 6.21 3.91 22.82 2.99 3.46 3.32 3.38 2.46 3.16 3.75 n.m
A Decade of Growth
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The results for 2010 were restated due to the adoption of the INT FRS 115 accounting standards which took effect on 1 January 2011.
• Subdued economic growth in Singapore and the region amidst
eurozone uncertainty
• Government cooling measures including additional stamp duty,
increase in housing supply, and tighter immigration rules to
dampen demand
• Low interest rates, high liquidity environment and Singapore
status as a safe haven to mitigate downside risks
10
UOL GROUP LIMITED
• PERFORMANCE REVIEW
• GOING FORWARD
LIAM WEE SIN
PRESIDENT (PROPERTY)
11
12
UOL GROUP LIMITED
Property
Development
Property
Investments
Hotel
Operations
Investments
Management
Services
BOLD are listed companies
Wholly-owned projects
Joint-venture projects
UNITED INDUSTRIAL CORPORATION LIMITED (43%)
MARINA CENTRE HOLDINGS PTE LTD (23%)
Residential Developments
Wholly-owned properties
Joint-venture properties
Commercial Properties/Serviced Suites
Joint-venture hotel
AQUAMARINA HOTEL PRIVATE LIMITED (25%)
PAN PACIFIC HOTELS GROUP LIMITED (82%)
Wholly-owned hotels
Hotel Investments
Investments in Securities
Facilities Management
Project Management
Hotel and Other Management
Owned hotels
($m)
Property development
Property investments
Hotel operations
Management services
Investments
1,393.8
160.3
360.0
19.9 26.2
835.5
147.9
325.1
18.5 22.0
FY 2011
FY 2010
+67%
+8%
+11%
+19% +7%
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Revenue by Business Segments
2011 vs 2010 (Restated)
Property development
71%
Property investments
8%
Hotel operations
19%
Management services
1%
Investments1%
FY2011
Property development
62%
Property investments
11%
Hotel operations
24%
Management services
1%Investments
2%
FY2010
($m)
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Revenue Contribution by Business Segments
2011 vs 2010 (Restated)
($m)
Property development
Property investments
Hotel operations
Management services
Investments
404.8
112.6
59.5
8.326.1
161.3
99.2
51.5
3.221.8
FY 2011
FY 2010
+151%
+14%
+16% +20%
+157%
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Operating Profit by Business Segments
2011 vs 2010 (Restated)
Property development
66%
Property investments
19%
Hotel operations
10%
Management services
1%Investments
4%
FY2011
Property development
48%Property
investments
29%
Hotel operations
15%
Management services
1%
Investments7%
FY2010
($m)
16
Operating Profit Contribution by Business Segments
2011 vs 2010 (Restated)
93
88
3
4
1
7
3
1Singapore
Australia
Malaysia
China
Others
Revenue
FY2011: S$1,960.2m
FY2010: S$1,349.1m
(%)
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Adjusted EBITDA*
FY2011: S$830.3m
FY2010: S$780.9m
Total Asset Value
FY2011: S$8,524.4m
FY2010: S$7,904.0m
*Excludes unallocated cost, other gains/losses and fair value gains/losses on investment properties
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New launch in 2011
Archipelago
• Located along Bedok Reservoir Road
• 553 condo units and 24 3-storey strata houses
• Nestled within lush greenery of the Bedok
Reservoir Park
• Near upcoming Bedok North Downtown
Line MRT Station (est. completion 2017)
• Average price of $1,000 psf achieved for the
160 units sold (as at 24 Feb 2012)
Launched No. of Units %Sold* (as at 31.12.11)
Average psf
Archipelago Dec 2011 577 16 S$980
Spottiswoode Residences Nov 2010 351 90 S$1,920
Nassim Park Residences Jun 2008 100 100 S$3,070
Panorama Apr 2008 223 96 RM1,005
Duchess Residences Jun 2007 120 99 S$1,787
Panorama Spottiswoode Residences Nassim Park Residences
Sale of 164 residential units and sales value of $311 million
* Based on sales and purchase agreement signed.
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Archipelago
Project Name %
Equity
Stake
No. of
Units
Saleable
Area
(sq m)
% Sold (as at 31.12.11)
% Complete (as at 31.12.11)
Est. TOP
Date
Duchess Residences 70 120 23,664 99 100 TOP 1Q2011
Breeze by the East 100 88 16,118 100 100 TOP 1Q2011
Nassim Park Residences 50 100 38,437 100 100 TOP 1Q2011
Panorama 55 223 24,927 96 100 TOP 2Q2011
Meadows@Peirce 100 479 66,270 100 97 1Q2012
Double Bay Residences 60 646 77,525 100 76 2Q2012
Waterbank at Dakota 100 616 58,213 100 64 2Q2013
Terrene at Bukit Timah 50 172 19,740 100 43 1Q2013
Spottiswoode Residences 100 351 27,376 90 15 3Q2013
Archipelago 50 577 71,445 16 0 1Q2015
Profit recognition of launched projects
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Duchess Residences
• 120-unit condominium at Duchess Avenue
Breeze by the East
• 88-unit condominium along Upper East Coast Road
Nassim Park Residences
• 100-unit luxury condominium at Nassim Road
Panorama, Kuala Lumpur
• 223-unit condominium at Persiaran Hampshire, Kuala Lumpur
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Breeze by the East Duchess Residences
Four residential TOPs in 2011
Nassim Park Residences Panorama
Project Name/Location Tenure
of Land
Site Area
(sq m)
Est.
Saleable
Area
(sq m)
Est.
No. of
Units
%
Owned
Lion City site FH 13,740 19,445 244 100
Archipelago 99 46,623 71,445 577 50
St Patrick’s Garden site FH 12,780 19,548 180 100
Total 73,143 110,438 1,001
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Over 1,000 residential units in Singapore pipeline
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Lion City site and adjoining site in Jan 2011
• Freehold site of area 13,740 sq m
• Near Paya Lebar MRT Interchange
• 244 condo units integrated with 19,519 sqm
retail mall
• 100% stake
• Condo units targeted to launch in 2Q 2012
• Children-themed mall similar to United
Square
• Good catchment within the 1-2km radius
• Target to complete in 2014
LION CITY
HOTEL SITE
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• Site area 46,623 sq m, plot ratio 1.4
• 553 condo units and 24 3-storey strata
houses
• Nestled within lush greenery of the Bedok
Reservoir Park
• Near Bedok North Downtown Line MRT
Station (est. completion 2017)
• 50% stake
Bedok Reservoir Road site (now known
as Archipelago) in March 2011
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St Patrick’s Garden site in December 2011
• Site area 12,780 sq m, plot ratio 1.4.
• Along Upper East Coast Road
• Freehold
• Approximately 180 units
• 100% stake
Pending
image/Map
Site at St Patrick’s
Garden
Project Name/Location Site Area
(sq m)
Est.
Saleable Area
(sq m)
Est.
No. of
Units
% Owned
Shanghai (Changfeng) **Mixed development
39,540 77,800 400 40
The Esplanade, Tianjin *Mixed development
22,895
54,511
522
90
KL (Jalan Conlay) 15,986 76,263 494 60
Total 78,421 208,574 1,416
** Mixed development of 77,800 sqm residential units and 8,000 sqm retail space.
*Mixed development consisting of 522 apartments, a 334-room hotel, 17,510 sq m of office and
10,920 sq m of retail space.
Over 1,000 residential units in overseas pipeline
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The Esplanade, Tianjin Jalan Conlay
• Mixed development of 552 apartments, a 330-room hotel, 17,510 sqm office
and 10,920 sqm retail space
• Condo units targeted to launch in 2Q 2012
• PAN PACIFIC Tianjin hotel set to open in 2013
• Target to complete in 2013
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Tianjin, The Esplanade
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Renowned Architect for Changfeng project
• Renowned architect Richard Rogers of Rogers Stirk Harbour + Partners (RSHP)
to design the Changfeng project
• Mixed development of 400 residential apartments and 8,000 sqm retail space
• Design creates a network of landscaped spaces that connect the site with
neighbouring streets and the surrounding green areas
• Target to launch in 2H 2013 upon completion of superstructure
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Office properties Net Lettable Area/
*GFA (sq m)
Portfolio
Novena Square 41,503
United Square 24,849
Odeon Towers 18,402
Faber House 3,956
SubTotal 88,710
Pipeline
Upper Pickering Office 8,088
The Esplanade, Tianjin (Hai He) Office component of mixed development
17,726
Total 114,524
Retail properties
Portfolio
Novena Square shopping mall 15,969
United Square shopping mall 18,822
SubTotal 34,791
Pipeline
Site at Lion City Hotel Retail component of mixed development
19,519
Shanghai (Changfeng) Retail component of mixed development
8,000*
The Esplanade, Tianjin (Hai He) Retail component of mixed development
10,215
Total 72,525
Grand Total 187,049
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Owned Serviced Suites Properties Rooms
Portfolio
PAN PACIFIC Serviced Suites Singapore (Orchard) 126
PARKROYAL Serviced Suites Singapore 90
PARKROYAL Serviced Suites Kuala Lumpur 287
SubTotal 503
Pipeline
PAN PACIFIC Serviced Suites project Singapore 180
Total 683
Lease Renewal
% Change in
Overall
Average Rent
FY11 vs FY10
Lease Expiry in 2012
(sq m)
NLA %*
Offices
Novena Square +2 5,186 12
United Square -8 7,557 30
Odeon Towers -6 4,172 23
Faber House -2 650 16
Subtotal -3 17,565 20
Shopping Malls
Novena Square +9 6,535 41
United Square +6 8,344 44
Subtotal +8 14,879 43
Tenancy Management
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* Percentage of NLA for each property.
NLA 41,503 24,849 18,402 3,956 15,969 18,822 (sq m)
Above 90% occupancy for all commercial properties
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Commercial Tenant Mix
33
37
17
9
128 7 10
Office space (%)
Consumer Goods
Property, Construction & Transportation
Banking, Insurance and Financial Services
Energy, Resources and Engineering
Electronics, IT, Telco
Institutions
Others
2917
15
13 9 6 11
Retail space (%)
Food & Beverage
Health, Beauty, Wellness & Fitness
Sports & Fashion
Education
Supermarket
Children's Fashion, Toys & Maternity
Others
RESIDENTIAL PROJECTS
Nassim Park Residences
• South East Asia Property Awards – Best Condo Development (South East Asia)
• South East Asia Property Awards – Best Condo Development (Singapore)
Duchess Residences
• FIABCI Singapore Property Awards - Residential (Low rise) category
Terrene at Bukit Timah
• BCA Green Mark GoldPlus Award
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CORPORATE AWARDS
UOL Group Limited
• Singapore Corporate Governance Award (Most Improved Award)
• BCI Asia Top 10 Developer Awards
• Davey Awards (Annual Report Category, Silver Winner)
Duchess Residences Nassim Park Residences Terrene at Bukit Timah
RESIDENTIAL PROJECTS (con’t)
Pavilion 11, Singapore
• BCA Construction Excellence Award (Residential Buildings)
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RETAIL SHOPPING MALL
United Square
• 'We Welcome Families' Achiever Award by Businesses for Families Council
HOTEL PROPERTIES
PARKROYAL on Pickering and Office block
• BCA Green Mark Platinum Award
• Solar Pioneer Award
United Square PARKROYAL on Pickering Pavilion 11
UOL increases stake in UIC from 42.02% to 42.86% in 2011
• UOL is the largest shareholder of UIC
• Proxy play on Singapore’s office market and exposure to quality
commercial properties
Share of operating profits of associated companies remain
significant
• $165.9 million vs $247.8 million in FY 2010 excluding fair value gain
- Reduced contribution from Nassim Park Residences following its TOP in 1Q 2011
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GOING FORWARD
38
• Subdued growth for 2012 amidst global economic uncertainties
and government cooling measures
• Healthy capital position and diversified portfolio to ride out
market volatility
• Selectively replenish landbank in Singapore
• Measured approach in geographical expansion
• Optimise and improve yield for investment properties
• Build on management strength and our niche and innovative
product track record
This presentation may contain forward-looking statements or financial information. Such forward-looking statements and
financial information may involve known and unknown risks, uncertainties, assumptions and other factors which may cause the
actual results, performance or achievements of UOL Group Limited, or industry results, to be materially different from any
future results, performance or achievements expressed or implied by such forward-looking statements and financial
information.
Such forward-looking statements and financial information are based on assumptions including (without limitation) UOL Group
Limited’s present and future business strategies, general industry and economic conditions, interest rate trends, cost of capital
and 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 and
public policy changes and the continued availability of financing in the amounts and the terms necessary to support future
business activities.
You are advised not to place undue reliance on these forward-looking statements and financial information, which are based
on 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 any
forward-looking statements or financial information contained in this presentation to reflect any change in UOL Group Limited’s
expectations with regard thereto or any change in events, conditions or circumstances on which any such statement or
information is based, subject to compliance with all applicable laws and regulations and/or the rules of the SGX-ST and/or any
other regulatory or supervisory body.
This presentation may include market and industry data and forecasts. You are again advised that there can be no assurance
as to the accuracy or completeness of such included information. While UOL Group Limited has taken reasonable steps to
ensure that the information is extracted accurately and in its proper context, UOL Group Limited has not independently verified
any of the data or ascertained the underlying assumptions relied upon therein.
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THANK YOU
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Q&A