CapitaMalls Malaysia Trust...Basement 1 – Additional Area Ground Floor - Additional Area Increased...

CapitaMalls Malaysia Trust Annual General Meeting *4 April 2013*

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

2

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.

CapitaMalls Malaysia Trust Annual General Meeting *4 April 2013* 3

• Year in Review

• Financial Highlights

• Portfolio Update

• Asset Enhancements

• Customer Engagement & Community

• Looking Forward

Contents


4 Year in Review Gurney Plaza, Penang


Delivering Performance, Scaling New Heights

FY2011: Financial Year ended 31 December 2011

FY2012: Financial Year ended 31 December 2012

162.4

196.0

FY2011 FY2012

Net Property Income (RM million)

7.87 8.44

FY2011 FY2012

Distribution Per Unit (DPU)

2.78 2.94

31-Dec-2011 31-Dec-2012

Portfolio Valuation (RM billion)

7.2% 20.7% 5.6%

118.3

149.1

FY2011 FY2012

Distributable Income (RM million)

26.1%



6

Total Return of +30.9%1 During FY2012

Capital Appreciation of 25.0%2 During FY2012

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.

16-Jul-10, RM0.98 Listed on BMKL

31-Dec-10, RM1.12

30-Dec-11, RM1.44

31-Dec-12, RM1.80

0.90

1.10

1.30

1.50

1.70

1.90

Jul-10 Oct-10 Feb-11 May-11 Aug-11 Nov-11 Mar-12 Jun-12 Sep-12 Jan-13

Unit

Price

(RM)

FP2010 14.3%

FY2011 28.6%

FY2012 25.0%

Capital Appreciation


• Occupancy remained high at 98.5%

• 6.4% increase in renewal/new lease rental rate for 2012 lease expiries1

• 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 mall2

• Approval obtained for the establishment of a 20-year medium term note

(MTN) programme of up to RM3.0 billion in nominal value

• First issuance3 of 4-year unrated and secured MTNs of RM300.0 million on

20 December 2012


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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.

Strong Operational Performance

Asset Enhancement Initiatives (AEI)

Optimal Capital Management

CapitaMalls Malaysia Trust Annual General Meeting *4 April 2013* 8 Financial Highlights Sungei Wang Plaza, Kuala Lumpur


Distribution Statement - 2012 vs 2011

9

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

FY 2012 FY 2011

Actual1

Actual2

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 income3 149,115 118,258 26.1

DPU (sen) 8.44 7.87 7.2


60%

6%

34%

2012

99%

1%

0% 2011

Term Loan Facilities

Unrated Medium Term Notes

Revolving Credit Facilities

Diversified Sources of Funding

2011

RM828.7 million RM873.7 million

Unencumbered Assets as a % of Total Assets

Average Cost of Debt

42.5% 42.0%

2012

Total Borrowings

4.70% 4.69%

10


520 450

70

300

300

54

54

Total Borrowings

2013 2016 2017 2018

Term Loan facilities

Unrated Medium Term Notes

Revolving credit facilities

Debt Maturity Profile

Debt Profile as at 31 December 2012

RM million

Fixed 76%

Floating1 24%

Interest Rate Profile

1. Includes short term revolving credit facilities of RM54.0 million

No Near-term Re-financing Risk

874

11


Firm Balance Sheet

12

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


Valuation of Portfolio

13

1. The valuations of Gurney Plaza include Gurney Plaza Extension (which was acquired on 28 March 2011).

Previous

Valuation

Current

Valuation

Current

Valuation

(31 Dec 2011) (31 Dec 2012) Variance (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

Property

yield

CapitaMalls Malaysia Trust Annual General Meeting *4 April 2013* 14 Portfolio Update

The Mines, Selangor


FY2012 Operating Metrics Remain Strong

As at 31 December 2010 2011 2012

Gurney Plaza1 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.

Positive Rental Reversions of 6.4%

High Occupancy Maintained

Stable Shopper Traffic of 59.9 Million

Occupancy History


Pan-Mall Events: Super-Dancers 2012

16

Grand Finale Winners at Gurney Plaza Super-Dance Contestants at The Mines

Promotional Material Super-Dance Contestants at Sungei Wang Plaza & East Coast Mall


Pan-Mall Events: My Lovely Mom 2012

17

Awards Ceremony at The Mines

Mother and Daughter at Gurney Plaza

Winners at Gurney Plaza Promotional Material Promotional Material


Pan-Mall Events: Eco-Lantern Making Festival

18

Eco-Lanterns

at Gurney Plaza

Eco-Lanterns at The Mines

Promotional Material

Eco-Lanterns

at East Coast Mall

CapitaMalls Malaysia Trust Annual General Meeting *4 April 2013* 19 East Coast Mall, Kuantan Asset Enhancements


Conversion of car park lots into new shops resulting in:

• Continuous retail activities from 4th floor to 7th floor

• Additional net lettable area of 20,161 sq ft

• Creation of 28 more shops with new rental income

Sectional plan

Images

Gurney Plaza, 2011

20

Before AEI

After AEI

Conversion of Car Park Lots at 5th and 6th Floors

Incremental NPI: RM2.4 mil pa Project Cost: RM21.9 mil Return on Investment: 11%


Gurney Plaza, 2011

21

New shops at ground floor’s main entrance Conversion of carpark to new shops at 5th floor and 6th floor

Reconfiguration on Ground, 5th and 6th Floors


Food

Court

Karaoke

Before AEI

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

After AEI

Access to

GF Main

Entrance

1

Installation of new escalator 1

New shops at Basement 1

Gurney Plaza, 2011 Reconfiguration of Basement 1


Gurney Plaza, 2012

23

Basement 1 – Additional Area

Ground Floor - Additional Area

Increased NLA through removal of Travelator from B1 to Ground Floor &

Construction of a Floor Slab in the Ground Floor Void Area

Incremental NPI: RM1.0 mil pa Project Cost1: RM3.4 mil Return on Investment: 29%

1. The cost of renovation works (general AEI) in 2012 was RM15.8 million


After Before

Repositioning Through Refurbishment and Tenant Re-mixing

24

Gurney Plaza, 2012


• Contributed RM17.6 million1 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

Sungei Wang Plaza, 2012

25

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.

Before In - Progress

Overall Refurbishment Works


Before After

Third Floor Reconfiguration Works – New Food Court

Sungei Wang Plaza, 2012

Refurbishment of Restrooms

After Before


The Mines, 2012

Storm Water Diversion

In - Progress Before

11kV Cabling Upgrading

27

Before In - Progress

Water Utilities Efficiency:

Direct Water Supply From

Syabas

Additional cabling


East Coast Mall, 2012

Refurbishment of Restrooms Installation of Shopper

Traffic Counters

Replacement of Auto Pay Stations and Car

Park System with Touch N Go

After Before

Installation of New

Chiller, Cooling Tower

Customer Engagement & Community 2012 Biz+ Seminar


Restaurant

Restaurant

30

Corporate Social Responsibility

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.

Wear Less Day – 30 Mar 2012

• Encouraged shoppers, tenants and staff to dress in

light clothing and turned up the indoor air-

conditioning 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

Green Initiatives

BCA Green Mark1 Gold Certification Achieved

• East Coast Mall: 28 Dec 2012.

• Gurney Plaza: 23 Dec 2011 - first mall in Malaysia



Green Initiatives

Vegetation Wall (1st in Malaysia)

Design is based on LOW CARBON &

ENERGY SAVING SYSTEM

Energy Saving Lights at Car Parks

Rain Water Harvesting

The Mines

The Mines

& Gurney Plaza Gurney Plaza


• 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


Philanthropy – My Schoolbag 2012


Customer Engagement: 2012 Biz+ Seminar “Staying Connected with Your Customers Digitally”

33

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

34 Looking Forward

Gurney Plaza, Penang


• 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

Looking Forward

35

CMMT’s Necessity-Focused Malls Should Continue to Prove

Resilient Through Economic Cycles

1. Source: Bank Negara Malaysia, Annual Report 2012

2. Source: Retail Group Malaysia

3. Subject to obtaining regulatory approvals

• Asset Enhancement Initiatives3

East Coast Mall Gurney Plaza

Objective Improve trade mix and add additional

retail space through conversion of some

car park bays on the 3rd floor and

reconfiguration of existing areas

Reconfigure the 4th 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


Thank You

For enquiries, please contact:

Kimberley Huston

(Investor Relations)

Tel: +60 3 2279 9809

Fax: +60 3 2799 9889

Email: [email protected]

www.capitamallsmalaysia.com

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