kardan land china

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GTC Real Estate China

Kardan Land ChinaCreating and Developing Value from the Growth of China

November 2011

“…transforming from agriculture country”

“ …and the beat goes on”

“… to a

modern country”

“ …and the beat goes on”

“…the world’s second-largest economy and will be bigger than USA’s by 2020”

“…China to make a 28% contribution to the global GDP growth in 2011 and 30% 2012”

“…different economies"

China Overview

“….from 600 million (2010) to 700 million (2015)”

“…every year 2 X Israel population moves to the cities “

China’s Urban Population

Sources: World Urbanization Prospects

“…China will have

the world's fourth-

largest number of

wealthy households

by 2015”

China - Emerging Middle Class

“…Middle Class:

400 million (2010) to

500 million (2015)”

“…Upper Middle Class:

170 million (2010) to

355 million (2015)”

China - Emerging Middle Class (2)

Sources: Urbanization Rates, Population based on UN, World Urbanization Prospects ; MGI Consumer Demand

Water to drink,

a house to live

and a place to shop

We are treating 630,000 t/d of water & waste water,

we are building 27,500 apartments (2.6 million sqm),

and 230,000 sqm of commercial area for lease and 90,000 of commercial area for sale

“…China: Building Rome in a day”

“…Building Europe in 15 years”

The Economist

China Real Estate Market - Residential

source: Economist Intelligence Unit

“…In the coming 10 years Greece will be built in Chengdu and Sweden in Tianjin “

China Real Estate Market - Residential

“…Shopping center per capita in China major cities is between 0.14 and 0.42 gross sq.m comparing app. 2 sq.m in the USA”

China Real Estate Market - Commercial

To be built 2010-2013

Existing 2010

Kardan Land – Strategy

“… To align our activity with the government policy”

“…To be active in second and third tier city”

“…Managing the risks in China”

Since 2007 Commercial

Development

Since 2010Assets

Management

Kardan Land Projects

Project Name QILI XIANGDI

Land Area (m2) 129,781

Building Rights (m2)

175,497 Residential

2,756 Retail

Planned Completion Q4/2010

Total Units 1,930

Shenyang - Qili Xiangdi


Shenyang – Palm Garden

Project Name PALM GARDEN



435,977 Residential

21,389 Retail


Total Units 3,500


Shenyang – Suzy

Project Name SUJIA TUN [SUZY]



560,308 Residential;

38,124 Retail

Planned Completion Q4-2016

Total Units 7,420


Xi’an – Olympic Garden

Project Name OLYMPIC GARDEN

Land (M 2) 397,734


889,616 Residential 46,365 Retail


Total Units 9,363


Project Name CITY DREAM

Location Changzhou

Land (M2) 194,650


470,432 Residential 61,987 Retail

Planned Completion Q3-2017

Total Units 4,137

Changzhou – City Dream


Chengdu – Galleria Chengdu

Project Name GALLERIA CHENGDU

Location Gaoxin District, Chengdu


Gross Floor Area (m2) 92,000

Grand Opening Nov. 24, 2010

Retail GFA (m2) 53,837

“…First International grade

shopping mall in Sichuan,

Bringing Zara, H&M, Mango,

Sephora and Uniqlo to the

region”


Dalian – Kardan Europark

Project Name KardanEuropark

Location DonggangArea, Dalian


Gross Floor Area (m2) 210,257

Grand Opening 2014

Retail GFA (m2) 101,120

Total Units 1,085

Project City

Construction Area (sqm) (*)Total

Residential Units

ResidentialUnit Sold

Residential for Sale

(sqm)

Commercial for Sale

(sqm)

Commercial for Lease (sqm) Total (sqm)

Qili Xiangdi Shenyang 175,497 2,756 - 178,253 1,930 1,921

Palm Garden Shenyang 435,977 21,389 - 457,366 3,500 814

Suzy Shenyang 560,308 14,124 24,000 598,432 7,420 2,648

Olympic Garden Xi’an 889,616 17,865 28,500 935,981 9,363 5,150

City Dream Changzhou 470,432 38,387 23,600 532,419 4,137 1,609

Dalian Dalian 109,137 - 101,120 210,257 1,085 -

Chengdu Galleria Chengdu - - 53,837 53,837 - -

2,640,967 94,521 231,057 2,966,545 27,435 12,142

Kardan Land’s Projects – Summary

“…till H1/2011 12,142 units were sold and 6,496 units were handed over”

* Kardan Land’s share in residential and commercial for sale is app. 50% and in commercial for lease is app. 70%

Kardan Land’s Projects – 2011 Sales Vs. 2010 Sales

“… Decrease in the sold units was compensated by increase in sale price -only 14% decrease in sales value”

* Units sold, not yet handed overRMB/EUR exchange rate 9.36 as of 30/6/2011

H1 2010 H1 2011

Units * Area(M2)

Sales(M EUR)

Units* Area(M2)

Sales(M EUR)

Total 1,919 139,462 79 1,140 96,449 68

2008 2009 2010 H1/2011

(M EUR) (M EUR) (M EUR) (M EUR)

Net Profit (Loss) (1) 3 15 13

Total Assets 198 249 465 461

Total Equity 93 129 161 208

“… Constant and stable growth”

Kardan Land - Key Financial Parameters

“…Residential gross margin 23%”

Kardan Land – Main H1 2011 P&L items

Revenue - Residential projects 13

Revenue- Commercial project 3

Net valuation gains from Investment Property 12

Profit from sale of land 7

Net profit for the period* 13

(in million EUR)

* Including ESOP expenses in the sum of EUR 5 million

Kardan Land – Units Hand Over

“…5,646 units sold and not yet handed over will generate a EUR 30M gross profit to Kardan Land in the coming two years”

“…Kardan Land’s first Residential project”

“…Equity

*EUR 4.3M”

“…Gross profit

*EUR 16.6 M ”

Case Study: Qili Xiangdi

Construction & sales began in 2005

Total cost of sales (per sqm) of RMB 380m (RMB 2,077) (*EUR 222)

Total revenue (per sqm): RMB 536m (RMB 2,931) (*EUR 313)

Gross profit of 29% (RMB 156m)

* RMB/EUR exchange rate 9.36 as of 30/6/2011

“…Kardan Land’s first Shopping Mallproject”

“…Equity InvestedEUR 44M”

“…Profit till Sep 2011 EUR 45M”

Case Study: Galleria Chengdu

• Total investment of approx. EUR 70m

• Opened in 2010 Q4

• In 2011 Q2 50% were sold to MGPA according to EUR 120M valuation.

• Remains under Kardan’s management

• Profit generated to date: EUR 45m

Disclaimer

This presentation has been prepared on behalf of Kardan N.V. solely for information purposes. It is not an investment advice or an offer or solicitation for the purchase or sale of any financial instrument. While reasonable care has been taken to ensure that the information contained herein is not untrue or misleading at the date of the presentation, Kardan N.V. makes no representationthat it is accurate or complete. The information contained herein is subject to change without notice. Neither Kardan N.V. nor any of its officers or employees accepts any liability for any direct or consequential loss arising from any use of this presentation or its contents. Copyright and database rights protection exist in this presentation and it may not be reproduced, distributed or published by any person for any purpose without the prior express consent of Kardan N.V. All rights are reserved.

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Disclaimer

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kardan land china

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