CapitaMalls Malaysia Trust Malaysia s only pure-play shopping mall REIT with an income - and geographically - diversified portfolio Annual General Meeting 4 April 2013
Disclaimer These materials 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, shifts in expected levels of property rental income, changes in operating expenses, including reimbursable staff costs, benefits and training, property expenses and governmental and public policy changes. 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 these materials 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 these materials. Neither CapitaMalls Malaysia REIT Management Sdn. Bhd. (the Manager ) or any of its affiliates, advisers or representatives shall have any liability whatsoever (in negligence or otherwise) for any loss howsoever arising, whether directly, from any use, reliance or distribution of these materials or its contents or otherwise arising in connection with these materials. The past performance of CMMT is not indicative of the future performance of CMMT. Similarly, the past performance of the Manager is not indicative of the future performance of the Manager. The value of units in CMMT ( Units ) and the income derived from them may fall as well as rise. Units are not obligations of, deposits in, or guaranteed by, the Manager or any of its affiliates. An investment in Units is subject to investment risks, including the possible loss of the principal amount invested. Investors have no right to request the Manager to redeem their Units while the Units are listed. It is intended that holders of Units may only deal in their Units through trading on Bursa Securities. Listing of the Units on Bursa Securities does not guarantee a liquid market for the Units. These materials are for information only and does not constitute an invitation or offer to acquire, purchase or subscribe for Units. 2
Contents Year in Review Financial Highlights Portfolio Update Asset Enhancements Customer Engagement & Community Looking Forward 3
4 Year in Review Gurney Plaza, Penang
Delivering Performance, Scaling New Heights Net Property Income (RM million) Distribution Per Unit (DPU) Distributable Income (RM million) Portfolio Valuation (RM billion) 162.4 20.7% 196.0 7.87 7.2% 8.44 118.3 26.1% 149.1 2.78 5.6% 2.94 FY2011 FY2012 FY2011 FY2012 FY2011 FY2012 31-Dec-2011 31-Dec-2012 FY2011: Financial Year ended 31 December 2011 FY2012: Financial Year ended 31 December 2012 5
Delivering Performance, Scaling New Heights Total Return of +30.9% 1 During FY2012 Capital Appreciation of 25.0% 2 During FY2012 1.90 1.70 31-Dec-12, RM1.80 Unit Price (RM) 1.50 1.30 1.10 31-Dec-10, RM1.12 16-Jul-10, RM0.98 Listed on BMKL 30-Dec-11, RM1.44 Capital Appreciation FP2010 14.3% FY2011 28.6% FY2012 25.0% 0.90 Jul-10 Oct-10 Feb-11 May-11 Aug-11 Nov-11 Mar-12 Jun-12 Sep-12 Jan-13 1. Equal to the DPU of 8.44 sen plus capital appreciation of 36 sen during the year divided by the opening unit price at the beginning of the year of RM1.44. 2. Based on the opening price of RM1.44 on 3 Jan 2012 and the closing price of RM1.80 on 31 Dec 2012. 6
Delivering Performance, Scaling New Heights Strong Operational Performance Occupancy remained high at 98.5% 6.4% increase in renewal/new lease rental rate for 2012 lease expiries 1 Asset Enhancement Initiatives (AEI) Gurney Plaza: AEI generated incremental NPI of ~RM1.0 million per annum Sungei Wang Plaza: contributed RM17.6 million to fund major upgrading works to the 35-year old mall 2 Optimal Capital Management Approval obtained for the establishment of a 20-year medium term note (MTN) programme of up to RM3.0 billion in nominal value First issuance 3 of 4-year unrated and secured MTNs of RM300.0 million on 20 December 2012 1. Based on the rental of the first year of the renewed/new lease term compared to the preceding rate (last year s rental of the preceding term). 2. An Extraordinary General Meeting called by SWP Management Corporation to raise a one-off contribution to fund major upgrading works. RM28.0 million was raised, of which CMMT s contribution was RM17.6 million. 3. Issued by CMMT MTN Berhad, a wholly-owned subsidiary of CMMT. 7
8 Financial Highlights Sungei Wang Plaza, Kuala Lumpur
Distribution Statement - 2012 vs 2011 FY 2012 FY 2011 Actual 1 Actual 2 Variance (RM'000) (RM'000) % Gross revenue 289,216 230,887 25.3 Less: Property operating expenses (93,232) (68,492) 36.1 Net property income 195,984 162,395 20.7 Interest income 3,972 3,063 29.7 Other non-operating income 96 2,305 (95.8) Fair value gain of investment properties 113,380 68,910 64.5 Net investment income 313,432 236,673 32.4 Manager s management fee (19,224) (16,286) 18.0 Trust and other expenses (1,472) (1,866) (21.1) Finance costs (42,271) (38,707) 9.2 Profit before taxation 250,465 179,814 39.3 Taxation - - - Profit for the period / year 250,465 179,814 39.3 Distribution adjustments (101,186) (61,531) N.M. Income available for distribution 149,279 118,283 26.2 Distributable income 3 149,115 118,258 26.1 DPU (sen) 8.44 7.87 7.2 1. FY 2012 includes the full year financial results of East Coast Mall and Gurney Plaza Extension. 2. Gurney Plaza Extension was acquired in 1Q 2011 (28 March 2011) and East Coast Mall was acquired in 4Q 2011 (14 November 2011). 3. The difference between distributable income and income available for distribution is due to rollover adjustment for rounding effect of DPU. N.M. Not meaningful 9
Diversified Sources of Funding 2011 2011 1% 0% 2012 34% 60% 6% 99% Term Loan Facilities Unrated Medium Term Notes Revolving Credit Facilities RM828.7 million RM873.7 million Total Borrowings 42.5% Unencumbered Assets as a % of Total Assets 42.0% 4.70% Average Cost of Debt 4.69% 10
Debt Profile as at 31 December 2012 No Near-term Re-financing Risk Debt Maturity Profile Interest Rate Profile RM million 874 54 300 Term Loan facilities Unrated Medium Term Notes Revolving credit facilities Floating 1 24% 520 300 450 Fixed 76% Total Borrowings 54 70 2013 2016 2017 2018 1. Includes short term revolving credit facilities of RM54.0 million 11
Firm Balance Sheet As at 31 December 2012 RM'mil Non-current Assets 2,939 NAV (RM'mil) Current Assets 183 - before income distribution 2,117 Total Assets 3,122 - after income distribution 2,042 Current Liabilities 139 Non-current Liabilities 866 NAV per unit (RM) Total Liabilities 1,005 - before income distribution 1.20 Net Assets 2,117 - after income distribution 1.15 Total Unitholders' Funds 2,117 Number of Units in Circulation (in million units) 1,768 12
Valuation of Portfolio Previous Valuation Current Valuation Property Current Valuation (31 Dec 2011) (31 Dec 2012) Variance yield (per sf of NLA) RM 'mil RM 'mil (%) (%) RM Gurney Plaza 1 1,100 1,174 6.7% 6.6% 1,330 Sungei Wang Plaza 792 819 3.4% 6.7% 1,827 The Mines 559 594 6.3% 6.6% 826 East Coast Mall 330 349 5.8% 6.9% 787 Total 2,781 2,936 5.6% 6.7% 1,178 1. The valuations of Gurney Plaza include Gurney Plaza Extension (which was acquired on 28 March 2011). 13
14 Portfolio Update The Mines, Selangor
FY2012 Operating Metrics Remain Strong High Occupancy Maintained Positive Rental Reversions of 6.4% Stable Shopper Traffic of 59.9 Million Occupancy History As at 31 December 2010 2011 2012 Gurney Plaza 1 98.2% 98.5% 98.1% Sungei Wang Plaza 98.3% 98.2% 97.7% The Mines 98.6% 98.8% 98.8% East Coast Mall 98.9% 99.7% CMMT Portfolio 98.3% 98.6% 98.5% 1. Includes Gurney Plaza Extension from 2011 onwards. 15
Pan-Mall Events: Super-Dancers 2012 Grand Finale Winners at Gurney Plaza Super-Dance Contestants at The Mines Promotional Material Super-Dance Contestants at Sungei Wang Plaza & East Coast Mall 16
Pan-Mall Events: My Lovely Mom 2012 Winners at Gurney Plaza Promotional Material Promotional Material Mother and Daughter at Gurney Plaza Awards Ceremony at The Mines 17
Pan-Mall Events: Eco-Lantern Making Festival Eco-Lanterns at Gurney Plaza Eco-Lanterns at East Coast Mall Promotional Material 18 Eco-Lanterns at The Mines
19 East Coast Mall, Kuantan Asset Enhancements
Gurney Plaza, 2011 Incremental NPI: RM2.4 mil pa Project Cost: RM21.9 mil Return on Investment: 11% Conversion of Car Park Lots at 5th and 6th Floors Conversion of car park lots into new shops resulting in: Continuous retail activities from 4 th floor to 7 th floor Additional net lettable area of 20,161 sq ft Creation of 28 more shops with new rental income Before AEI Images Sectional plan After AEI 20
Gurney Plaza, 2011 Reconfiguration on Ground, 5th and 6th Floors Conversion of carpark to new shops at 5 th floor and 6 th floor New shops at ground floor s main entrance 21
Gurney Plaza, 2011 Reconfiguration of Basement 1 Reconfiguration of the former mini anchor space at Basement 1 resulting in: Better line of sight and accessibility Additional net lettable area Creation of more shops with higher rental income Food Court Karaoke Before AEI 1 Installation of new escalator Access to GF Main Entrance 1 New shops at Basement 1 After AEI 22
Gurney Plaza, 2012 Incremental NPI: RM1.0 mil pa Project Cost 1 : RM3.4 mil Return on Investment: 29% Increased NLA through removal of Travelator from B1 to Ground Floor & Construction of a Floor Slab in the Ground Floor Void Area Ground Floor - Additional Area Basement 1 Additional Area 23 1. The cost of renovation works (general AEI) in 2012 was RM15.8 million
Gurney Plaza, 2012 Repositioning Through Refurbishment and Tenant Re-mixing Before After 24
Sungei Wang Plaza, 2012 Overall Refurbishment Works Before In - Progress Contributed RM17.6 million 1 to fund upgrading works, namely: - Re-tiling of the common area - Replacement of the plaster ceiling and lighting fixtures. CMMT is also upgrading the floors and ceilings to the atrium and surrounding corridors, which it owns. Timeline: October 2012 to late 2013 1. An Extraordinary General Meeting called by SWP Management Corporation to raise a one-off contribution to fund major upgrading works. RM28.0 million was raised, of which CMMT s contribution was RM17.6 million. 25
Sungei Wang Plaza, 2012 Third Floor Reconfiguration Works New Food Court Before After Refurbishment of Restrooms Before After 26
The Mines, 2012 Before 11kV Cabling Upgrading In - Progress Water Utilities Efficiency: Direct Water Supply From Syabas Additional cabling Storm Water Diversion Before In - Progress 27
East Coast Mall, 2012 Before Refurbishment of Restrooms After Installation of Shopper Traffic Counters Replacement of Auto Pay Stations and Car Park System with Touch N Go Installation of New Chiller, Cooling Tower 28
2012 Biz+ Seminar Customer Engagement & Community
Corporate Social Responsibility Green Initiatives Restaurant Restaurant BCA Green Mark 1 Gold Certification Achieved East Coast Mall: 28 Dec 2012. Gurney Plaza: 23 Dec 2011 - first mall in Malaysia Wear Less Day 30 Mar 2012 Encouraged shoppers, tenants and staff to dress in light clothing and turned up the indoor airconditioning temperature in CMMT s malls to save energy. Earth Hour 2012 31 Mar 2012 Turned off the facade and non-essential lights in CMMT s malls for 10 hours 1. Building and Construction Authority, Singapore (BCA) Green Mark is a green building rating system to evaluate a building for its environmental design and performance. 30
Corporate Social Responsibility Green Initiatives Vegetation Wall (1 st in Malaysia) Gurney Plaza Energy Saving Lights at Car Parks The Mines & Gurney Plaza The Mines Rain Water Harvesting Design is based on LOW CARBON & ENERGY SAVING SYSTEM 31
Corporate Social Responsibility Philanthropy My Schoolbag 2012 Second consecutive year in Malaysia School bags containing school and daily necessities are given to underprivileged children. Programme was held at CMMT s malls with lunch and entertainment for the children. Funded by CapitaLand Hope Foundation - RM120,000 donated to 600 children from 22 charity homes within Malaysia
Customer Engagement: 2012 Biz+ Seminar Staying Connected with Your Customers Digitally Presentations 1. Retail in a Connected World 2. ZMOT (Zero Moment of Truth) 3. Leveraging Social Media Insights for the Retail Industry 4. Integrated Marketing Finding the Right Balance between Traditional and Digital Media Channels Attended by 230 tenants and 55 staff members 33
34 Looking Forward Gurney Plaza, Penang
Looking Forward CMMT s Necessity-Focused Malls Should Continue to Prove Resilient Through Economic Cycles Positive Retail Outlook Despite Global Economic Uncertainties GDP growth 2013(F): 5.0% to 6.0% 1 Retail sales growth 2013(F): 6.0% 2 Asset Enhancement Initiatives 3 Objective East Coast Mall Improve trade mix and add additional retail space through conversion of some car park bays on the 3 rd floor and reconfiguration of existing areas Gurney Plaza Reconfigure the 4 th floor furniture zone and improve trade mix Cost (est) Approximately RM60 million Approximately RM8 million Timeline Mar 2013 to end 2014 Jun 2013 to early 2014 1. Source: Bank Negara Malaysia, Annual Report 2012 2. Source: Retail Group Malaysia 3. Subject to obtaining regulatory approvals 35
Thank You For enquiries, please contact: Kimberley Huston (Investor Relations) Tel: +60 3 2279 9809 Fax: +60 3 2799 9889 Email: kimberley.huston@capitaland.com www.capitamallsmalaysia.com 36