KLCC Property Holdings Berhad Analyst Briefing Mandarin Oriental Kuala Lumpur 3 September 2013
Overview of the Stapled Structure KLCCP Stapled Securities holders KLCCP Stapled Group KLCC REIT (Islamic REIT) Common management and board of directors KLCCP REIT Portfolio Property Portfolio PETRONAS Twin towers Menara ExxonMobil Menara 3 PETRONAS Basis of Consolidation KLCCP is deemed to be the controlling entity as it has power to govern the financial and operating policies of KLCC REIT. KLCCP holds no equity interest in KLCC REIT. Therefore, KLCC REIT will be treated as 100% non-controlling interest in the consolidated account of KLCCP Suria KLCC Mandarin Oriental Kuala Lumpur Menara Dayabumi Lot D1 Management Services Property Management (i.e. KLCC Urusharta) REIT Manager (i.e. KLCC REIT Management) Car Park Operator (i.e. KLCC Parking Management) 4
The Period In Review: KLCCP s Stapled Group Financial Results
Financial Results Overview Period Ended June 2013 GROUP (RM million) Statements of Comprehensive Income 30 June 2013 30 June 2012 Revenue 626 564 Operating Profit 477 410 Profit Before Taxation 427 379 Variance: June 13 vs June 12 11% 16% 13% Profit For The Period 364 288 26% Profit Attributable to Equity Holders of KLCCP & KLCC REIT 275 193 Statements of Financial Position 30 June 2013 31 Dec 2012 Total Assets 15,973 15,791 Total Liabilities 2,840 2,798 Equity Attributable to Equity Holders 11,427 8,434 42% Variance: June 13 vs Dec 12 1% 2% 35%
Financial Results Overview Qtr1, 2013 & Qtr2, 2013 GROUP (RM million) Qtr 1, 2013 Qtr 2, 2013 Period Ending Statements of Comprehensive Income KLCCP KLCCP KLCC REIT Total June 2013 Revenue 310 218 97 316 626 Operating Profit 237 153 87 240 477 Profit Before Taxation 206 147 74 221 427 Profit For The Period / Year 150 140 74 214 364 Dividend/Income distribution: Realised distributable income 88 81 60 141 Distribution rate Dividend/Income Distribution 92.36% 95% 81 134 215
Continuous growth in the value of investment properties is a strong testament as to their quality and strategic location RM Million 13,807 14,000 12,000 +12% 10,000 8,000 6,000 4,000 6,260 +5% +6% +9% +6% +10% The Carrying Value for 2013 will be determined at Year End 2,000 +27% 0 Valuation 2004 (Since Listing) Valuation 2007 Valuation 2008 Valuation 2009 Valuation 2010 Valuation 2011 Valuation Dec 2011 Valuation Dec 2012 as evidenced in the gain in valuation achieved for year ending 2012 of RM1,379 million. The recognized carrying value at 31 Dec 2012 was RM13,807m
Reduction in Group gearing ratio to 17% mainly as a result of improvement in equity 3,000 2,500 2,695 54% 2,487 51% 2,287 2,125 2,103 1,999 2,160 2,380 2,375 2,322 60% 50% RM mil 2,000 1,500 1,000 37% 33% 31% 27% 27% 25% 22% 40% 30% 17% 20% 500 10% 0 FY04/05 FY05/06 FY06/07 FY07/08 FY08/09 FY09/10 FY10/11 FP2011 FY2012 June, FY2013 Restated 0% - Long Term Borrowings - Short Term Borrowings - RCULS Gearing Ratio (Debt / (Debt + Equity)) Debt includes all external loans, RCULS (liability portion) but excludes shareholders advances, accrued interest and amortisation of early redemption Midciti PDS
The Period In Review: Overview of Segmental Performance
Group revenue for period ended June 2013 increased by 11% or RM62 million on the back of improved performance in most segment.. 800 600 400 200 - Segmental Revenue (RM million) RM 564m 45.6 89.0 182.3 6% -13% 12% RM 626 m 48.3 78.7 204.8 294.4 247.6 19% 30-Jun-12 30-Jun-13 Office Retail Hotel Operations Management Services in particular an increase of 19% or RM46.8 million in the office segment mainly due to the triple net lease renewal of the PETRONAS Twin Towers
The Period In Review: Dividends To Shareholders
Record dividend per share/unit Net Dividend Per Share and Yield on Share Prices Since Listing 18.0% 27.42 30.0 Net Dividend / Avg. Share Price 16.0% 14.0% 12.0% 10.0% 8.0% 6.0% 4.0% 2.0% 8.70 3.5% 5.2% 2.5% 13.33 12.00 10.44 10.50 11.00 7.9% 7.1% 6.2% 6.3% 6.5% 4.2% 4.2% 3.7% 3.7% 3.4% 3.6% 3.5% 3.3% 3.6% 2.9% 3.6% 2.6% 16.3% 16.50 9.8% 4.1% 4.0% 25.0 20.0 15.0 10.0 5.0 Sen Per Share 0.0% FY06/07 FY07/08 FY08/09 FY09/10 FY10/11 FP2011 FY2012 FY2013 Forecasted Net Dividend / Average Share Price Net Dividend / Year End Share Price Net Dividend / Issue Price Net Dividend [Interim + Final] (sen) * - * Annualised
Dividend payout ratio consistently above 40% 100.00% 90.00% 80.00% 70.00% 60.00% 50.00% 40.00% 30.00% 20.00% 10.00% 0.00% Dividend payout ratio 44.02% 43.87% 44.64% 42.96% 13.33 10.50 12.00 11.00 FY08/09 FY09/10 FY10/11 FP2011* (9 months) Profit After Tax & NCI (Group) - excluding FV adj 40.35% FY2012 16.50 Net Dividend [Interim + Final] (sen) 27.42 94.57% FY2013 Forecasted sen 30.00 28.00 26.00 24.00 22.00 20.00 18.00 16.00 14.00 12.00 10.00 8.00 6.00 4.00 2.00 - * Annualised Min 95% payout ratio from commencement of the new Stapled Structure in May 2013 and also for FY2014
Dividend/Income Distribution for 2013 Total Stapled Dividend/Income distribution per stapled security Securities (sen) Q1, 2013 Q2, 2013 Q3, 2013* Q4, 2013* Total KLCCP 1,805,333,083 4.50 4.26 2.93 2.93 14.62 KLCC REIT 1,805,333,083-3.19 4.80 4.81 12.80 Total 4.50 7.45 7.73 7.74 27.42 Note : * Forecast Figure FY2013, KLCCP Stapled Group would still commit on the 95% payout ratio, as disclosed in the prospectus, commencing from the listing of the Stapled Securities.
THANK YOU KLCC Property Holdings Berhad Analyst Briefing The Period Ended 30 June 2013 In Review