KLCCP Stapled Group Corporate Day 24 January 2014 KLCCP Stapled Group Analyst Briefing 4 th Quarter ended 31 December 2013 FYE 2013
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. 1
KLCCP Stapled Group KLCC PROPERTY HOLDINGS BERHAD KLCCP Stapled Group Stapled Securities Comprising the stapling of 1,805,333,083 ordinary shares of RM1.00 each in KLCCP and 1,805,333,083 in KLCC REIT KLCC REAL ESTATE INVESTMENT TRUST KLCC PROPERTY HOLDINGS BERHAD Traded as a single security under KLCC REIT on Bursa (5235SS)
Stapled Group Financial Highlights FYE 2013
Financial Results Overview – FYE 2013 31 Dec’13 31 Dec’12 Statement of Comprehensive % RM’mil RM’mil Income Variance Revenue 1,279 1,178 8.6 Operating Profit 962 878 9.6 Profit Before Tax 875 802 9.1 Profit for the year 763 593 28.7 Profit Attributable to Equity 626 382 63.9 Holders of KLCCP and KLCC REIT Statement of Financial Position Total Assets 16,265 15,790 3.0 Total Liabilities 2,858 2,798 2.1 Equity Attributable to Holders 11,695 8,434 38.7 of KLCCP and KLCC REIT
FINANCIAL HIGHLIGHTS REVENUE 1,279 1400 1,178 1200 1000 RM'Mil 800 591 521 600 439 391 400 174 165 106 140 200 (56) (14) 0 2013 2012
FINANCIAL HIGHLIGHTS PROFIT BEFORE TAX 1000 (excluding fair value adjustments) 875 802 DPU 800 600 RM'Mil 447 461 339 400 296 200 33 59 (1) 27 21 (5) 0 2013 2012
Dividend/Income Distribution for 2013 Total Stapled Dividend/Income distribution per stapled security Securities (sen) Post listing Pre Listing Q1, 2013 Q2, 2013 Q3, 2013 Q4, 2013 Annualised Total KLCCP 1,805,333,083 4.50 4.26 3.42 3.87 15.40 16.05 KLCC REIT 1,805,333,083 - 3.19 4.86 4.84 17.19 12.89 4.50 7.45 8.28 8.71 32.59 28.94 Total FY2013, KLCCP Stapled Group has committed on the 95% payout ratio, as disclosed in the prospectus, commencing from the listing of the Stapled Securities. Annualised distribution per staple security post listing is 32.59 sen. Total distribution for FY2013 per stapled security is 28.94 sen 17
Record dividend per share/unit Net Dividend Per Share and Yield on Share Prices Since Listing 20.0% 35.0 28.94 18.0% Net Dividend / Avg. Share Price 30.0 16.0% 17.2% 25.0 14.0% Sen Per Share 12.0% 16.50 20.0 10.0% 13.33 12.00 15.0 9.8% 8.0% 10.50 11.00 10.44 8.70 7.9% 6.0% 7.1% 4.9% 10.0 4.3% 4.2% 6.5% 4.2% 6.2% 6.3% 3.6% 4.0% 5.2% 2.6% 5.0 3.7% 3.6% 3.7% 3.6% 2.0% 3.3% 3.5% 3.5% 3.4% 2.9% 2.5% 0.0% - FY06/07 FY07/08 FY08/09 FY09/10 FY10/11 FP2011 FY2012 FY2013 Net Dividend / Average Share Price Net Dividend / Year End Share Price Net Dividend / Issue Price Net Dividend [Interim + Final] (sen)
Significant increase in Dividend payout ratio Dividend payout ratio 100.00% 32.00 28.94 90.00% 28.00 80.00% 92.00% 24.00 70.00% 20.00 60.00% 16.50 44.02% 50.00% 16.00 43.87% 13.33 11.00 12.00 10.50 40.00% 12.00 40.35% 30.00% 44.64% 8.00 42.96% 20.00% 4.00 10.00% 0.00% - FY08/09 FY09/10 FY10/11 FP2011 FY2012 FY2013 (9 months) Profit After Tax & NCI (Group) - excluding FV adj Net Dividend [Interim + Final] (sen)
The Growth Story Delivering Significant Growth & Stable Distribution
Creating a Growth Story of Stable Distribution and Significant Growth KLCCP STAPLED GROUP Acquisition Growth KLCCP • Ownership of attractive Inorganic Growth premier assets Active Asset from ROFR and 3 rd • Assets with significant Parties Management potential for redevelopment / • Right of First Refusal Growth from In-built enhancement (ROFR) from KLCCH Pipeline • Prime land earmarked • Significant debt for development headroom of > RM5 Substantial • Potential for injection / billion to overall 50% • Low-risk development Embedded Organic acquisition of Unparalleled gearing for the KLCCP properties partially Growth Stapled Group Platform owned by KLCCP into for Growth KLCC REIT and • Built-in step up rents realise tax benefits KLCC REIT for ~70% of rental • Significant potential income • Unique prime from low-risk and non- commercial assets with • Asset enhancement speculative strong stable initiatives / potential development / operational performance redevelopment • Significant growth from opportunities • 15-year triple-net leases management of retail with built-in step up operations rates from PETRONAS • In-house property and for PETRONAS Twin Towers and Menara 3 facilities management PETRONAS and services, and leasing services • Stable cash flows with growth
Inherent Organic Growth Strategy Optimise rental, occupancy rates and NLA of properties Active Asset To improve returns from property portfolio Management Effective Leasing Initiatives Mitigating risk by entering into triple net leases – mitigates risk of uncertainty vis-a-vis the property operating expenses Long term and higher degree of certainty in rental Planning towards a triple net lease for Kompleks Dayabumi to prepare for longer term tenancy Triple Net Lessee Initiatives Support Petronas to embark on green initiatives to preserve the pristine condition of the property invariably for continuity towards longer tenancy prospects Strong capability in retail management Optimise and sweat the retail asset by having the right tenant-mix Right-tenant-right-location to refresh retail mix and offering Effective marketing initiatives
Acquisition Growth : KLCCP properties to provide platform for growth Capitalises on opportunities for future income and NAV growth Growth from In- Realises tax benefits to the REIT built Pipeline Stimulates growth Acquisitions of assets within KLCCP Enhance REIT positioning Re-rating catalyst Provide vibrant mix to the property portfolio Asset Enhancement potential Unlock commercial potential Enhance Group’s competitive position, maximise asset value and yield rental growth Refurbishment and redevelopment of existing properties with potential to add value Assets with JV partners Add value to the KLCC precinct New longer term income stream Agreement with strategic partner to be secured
KOMPLEKS DAYABUMI Refurbishment & Redevelopment Refurbishment of common Status : Partly Completed – 1 2 areas – lift lobbies, toilets MISC Recreational Club & of Menara Dayabumi. common areas Menara Dayabumi. Full completion by Oct 2014
KOMPLEKS DAYABUMI Refurbishment & Redevelopment Addition & Alteration – 1 2 Status : Physical Completion by Feb 2014. Corporate Lobby & Launching of Corporate Lobby renovation of retail on 27 Jan 2014 area/new retail area of Menara Dayabumi
KOMPLEKS DAYABUMI Refurbishment & Redevelopment 1 2 Status : BOD approved Redevelopment of redevelopment Citypoint Podium (mixed Development Order obtained development) Construction Commencement by early 2015
LOT D1 (Vacant Land) Slated for mixed development comprising office and retail 1.3 mil. sq. ft. GFA
Acquisition Growth : Right of First Refusal (ROFR) from KLCCH Group Acquisition of existing and future assets predominantly Inorganic Growth for office or retail of KLCCH or any KLCCH entity from ROFR & 3 rd Lots potentially available – Lot 185/K/176; Lot 91; Lots party acquisitions L/LI/M/N LOT 185, K, 176 L L1 M N LOT 91
Acquisition Growth : Third party acquisitions 3 rd party acquisitions which fit investment criteria & Inorganic Growth from 3 rd party objectives acquisitions Capital Growth Sizeable debt headroom of approximately RM5b to acquire properties 1
Sizeable debt headroom for future acquisitions Capacity to fund single asset acquisition of up to RM1 billion. Capacity to fund single asset acquisition of up to RM1 billion. The Group The Group seeks to optimize its capital structure and debt funding seeks to optimize its capital structure and debt funding through efficient capital and risk management. through efficient capital and risk management .
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