KLCCP Stapled Group Financial Results 1 st Quarter ended 31 March 2017 22 May 2017
Disclaimer These materials contain historical information of the Company which should not be regarded as an indication of future performance or results. These materials also contain forward-looking statements that are, by their nature, subject to significant risks and uncertainties. These forward-looking statements reflect the Company’s current views with respect to future events and are not a guarantee of future performance or results. Actual results, performance or achievements of the Company may differ materially from any future results, performance or achievements expressed or implied by such forward-looking statements. Such forward-looking statements are based on numerous assumptions regarding the Company’s present and future business strategies and the environment in which the Company will operate in the future, and must be read together with such assumptions. No part of these materials shall form the basis of, or be relied upon in connection with, any investment decision whatsoever. 2 Q1FY2017 Results – Investor Presentation
KLCCP STAPLED GROUP Q1FY2017 Results 1. KLCCP Stapled Group Key Highlights 2. Portfolio Performance 3. Capital Management 4. KLCCSS Outlook
Profits impacted by lease transition at Menara ExxonMobil and on-going tenant remixing at retail Q1 FY2017 vs Q1 FY2016 Financial Performance Revenue ( RM’m ) Profit for the period ( RM’m ) 209.4 336.7 0.6% 2.8% 334.8 203.4 Q1 FY2016 Q1 FY2017 Q1 FY2016 Q1 FY2017 Profit attributable to KLCCP & KLCC REIT Distribution per stapled security (sen) holders ( RM’m ) 182.8 8.60 8.60 3.3% 176.7 Q1 FY2016 Q1 FY2017 Q1 FY2016 Q1 FY2017 4 Q1FY2017 Results – Investor Presentation
Improved contribution from hotel and management services segments OFFICE Segmental Revenue (RM mil) Release of 40% leased area in Menara ExxonMobil by ExxonMobil Exploration Composition to total KLCCP and Production Malaysia Inc. in January Stapled Group revenue (%) 336.7 2017 334.8 +10.6% 10 29.9 33.1 RETAIL 36.6 39.1 12 +6.9% Lower occupancy in transition for retail mixing 120.6 118.8 -1.5% 35 HOTEL Increased occupancy and room revenue contribution from leisure and group -1.4% segments 147.7 145.7 43 MANAGEMENT SERVICES Facility management services for Q1 FY2016 Q1 FY2017 properties in Kerteh and one-off facility management works Office Retail Hotel Management Services 5 Q1FY2017 Results – Investor Presentation
Continue to deliver sustainable returns to holders of Stapled Securities Distribution per stapled security Q1 FY2017 Q1 FY2016 (DPU) (sen) KLCCP 3.10 2.85 KLCC REIT 5.50 5.75 Distribution per stapled security 8.60 8.60 5 th June 2017 Ex dividend date 7 th June 2017 Book closure date 5 th July 2017 Distribution payment date 6 Q1FY2017 Results – Investor Presentation
Healthy balance sheet providing conducive business environment for future development and long term stability Statement of Financial Position (31 Mar 17 vs 31 Dec 16) Total Liabilities ( RM’m ) Total Assets ( RM’m ) 17,800 17,782 3,004 3,024 0.1% 0.7% 31-Dec-16 31-Mar-17 31-Dec-16 31-Mar-17 Equity attributable to KLCCP & KLCC REIT NAV per stapled security (RM) holders ( RM’m ) 7.09 7.09 12,793 12,794 31-Dec-16 31-Mar-17 31-Dec-16 31-Mar-17 7 Q1FY2017 Results – Investor Presentation
KLCCP STAPLED GROUP Q1FY2017 Results 1. KLCCP Stapled Group Key Highlights 2. Portfolio Performance 3. Capital Management 4. KLCCSS Outlook
Office - Stable performance with lease transition at Menara ExxonMobil Revenue ( RM’m ) PETRONAS MENARA 3 MENARA MENARA TWIN TOWERS PETRONAS EXXONMOBIL DAYABUMI 147.7 145.7 KLCC REIT KLCC PROPERTY Marginal decrease in revenue and PBT due to release of 40% leased area of Menara Exxonmobil in January 2017, partially offset by additional rental from the conversion of atrium Q1 FY2016 Q1 FY2017 spaces in Menara Dayabumi Profit before tax ( RM’m ) Finalisation of lease agreement with potential tenant to occupy remaining 40% at Menara ExxonMobil by Q2 FY2017 132.0 130.4 94% revenue contribution from KLCC REIT 97% average occupancy for office portfolio Q1 FY2016 Q1 FY2017 9 Q1FY2017 Results – Investor Presentation
Retail - Maintained resiliency with ongoing tenant remixing to better reflect customer preferences Suria KLCC Menara 3 PETRONAS – Retail Podium Revenue ( RM’m ) 120.6 118.8 KLCC REIT KLCC PROPERTY Higher rental rates from new tenants and lease renewals were offset against reduced occupancy in transition for retail mixing Q1 FY2016 Q1 FY2017 10% growth in MAT-tenant sales, YoY mainly contributed by Profit before tax ( RM’m ) luxury fashion, houseware and beauty & skincare segments Ongoing formation of luxury men’s and women’s zone on 92.1 90.3 Level 1 4 new tenants and retailer upgrades contributing to continuous enhanced customer experience Q1 FY2016 Q1 FY2017 10 Q1FY2017 Results – Investor Presentation
New tenants at Suria KLCC in Q1 FY2017 Brooks Brothers Tory Burch Opened on 5th January 2017 Opened on 6th Jan 2017 Hyper Gear Opened on 14th January 2017 Sunglass Hut Opened on 18th Feb 2017 11 Q1FY2017 Results – Investor Presentation
Hotel - Increased occupancy despite limited capacity from ongoing room renovations Mandarin Oriental, Kuala Lumpur Revenue ( RM’m ) 39.1 KLCC PROPERTY 36.6 6% increase in occupancy from YTD Mar 2016 from strategy shift in declining corporate oil and gas sector to alternative markets 5% room revenue growth, YoY mainly contributed from the Q1 FY2016 Q1 FY2017 Leisure & Group segments due to promotions and proactive Profit before tax ( RM’m ) e-commerce strategies PBT impacted by higher manpower related costs from 0.25 implementation of minimum wage order and the rising costs 0.18 of imported goods First phase of guestroom renovation including Club rooms & Suites are on track for completion with target for re-launch in Q1 FY2016 Q1 FY2017 12 2H FY2017 Q1FY2017 Results – Investor Presentation
Management Services - Upside from expansion of facility management services to properties in Kerteh Revenue ( RM’m ) 33.1 29.9 11% revenue growth, YoY from contribution of facilities management services for properties under KLCC Holdings in Kerteh, Terengganu which commenced in June 2016 and one-off facility management works Q1 FY2016 Q1 FY2017 Reduced PBT due to lower interest income owing to the Profit before tax ( RM’m ) Overnight Policy Rate cut in mid July 2016 11.7 8.5 Q1 FY2016 Q1 FY2017 13 Q1FY2017 Results – Investor Presentation
KLCCP STAPLED GROUP Q1FY2017 Results 1. KLCCP Stapled Group Key Highlights 2. Portfolio Performance 3. Capital Management 4. KLCCSS Outlook
Prudent capital management with well-staggered debt maturity profile Debt Maturity Profile 2,577 As at 31 March Fixed 85% 2017 Interest Debt RM2,577 mil Rate Profile Gearing Ratio 20% Average Cost of Debt 4.49% Floating 15% 15 Borrowings on Fixed Rate 85% Q1FY2017 Results – Investor Presentation
KLCCP STAPLED GROUP Q1FY2017 Results 1. KLCCP Stapled Group Key Highlights 2. Portfolio Performance 3. Capital Management 4. KLCCSS Outlook
Continue to re-position our assets to compete on our potential & quality and provide long term stable income Expected to remain stable Expected to remain stable, Continue to operate in Outlook on the back of locked-in trading in difficult market challenging environment long term tenancies and conditions with intense competition high quality tenants from new hotels OFFICE RETAIL HOTEL Our Key Focus To conclude lease of To complete dedicated Pursue market outside its vacated space at Menara precincts of luxury men’s traditional reliance ExxonMobil and minimize and women’s zones Capitalise on re-launch of downtime To bring in strategic renovated Club Rooms Continue to strengthen retailers to create and Suites by mid-2017 leasing capabilities and customer experience Innovate with new F&B pursue aggressive Reconfiguration of layout offerings and leisure initiatives to attract and for better leasing promotions retain quality tenants opportunities 17 Q1FY2017 Results – Investor Presentation
KLCCP STAPLED GROUP Q1FY2017 Results Thank You
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