Financial Year 2007 Results Financial Year 2007 Results 29 Jan 2008 - PowerPoint PPT Presentation

Financial Year 2007 Results Financial Year 2007 Results 29 Jan 2008

2 Financial Performance Operations Review Market Outlook Going Forward Content • • • •

3 Financial Performance

FY07 Financial Achievements PATMI more than tripled to $779.7 m ROE of 46.2% a new high ROE of 25.8%* NTA / Share up 44% to $3.18 Net debt to equity ratio falls 60.6% to 0.41 * Excluding revaluation gains on investment properties 4

Financial Highlights $m FY2007 FY2006 % Chg Turnover 1,407.9 948.0 48.5 EBITDA 321.9 215.3 49.5 Operating Profit 312.3 204.1 53.0 Pre-tax Profit 531.7 263.4 101.9 PATMI 779.7* 200.3 289.3 * Includes corporate restructuring surplus / enbloc property sales ($235.2m) less impairment provision ($78.5m), and net gain on revaluation of investment properties ($343.6m) 5

Key Ratios $m FY2007 FY2006 % Chg EPS (¢) 108.3 27.9 288.2 NTA Per Share ($) 3.18 2.21 43.9 Net Debt / Equity Ratio (x) 0.41 1.04 (60.6) ROE (%) 46.2 12.8 260.9 ROE (%) 25.8* 12.8 101.6 Dividend Per Share 20 6 233.3 Final Dividend (¢) 8 6 33.3 Special Dividend (¢) 12 - - * Excluding revaluation gains on investment properties 6

Net Profit – By Business Segment Business FY2007 FY2006 % Comments Segment $m $m Chg Higher due mainly to contributions from Trading 274.9 150.7 82.4 Reflections at Keppel Bay, Marina Bay Residences and Sixth Avenue Residences in Singapore; Villa Riviera, The Seasons and The Arcadia in China; and Elita Promenade in India Investment 30.9 27.6 12.0 Higher due mainly to write-back of tax provisions Including contribution from K-REIT Asia Fund Management 14.1 9.6 46.9 Smaller loss due to lower depreciation Hotels / Resorts (1.1) (4.0) nm Higher interest and overhead costs Less Interest and Overheads 39.4 29.6 nm Surplus from ownership restructuring Surplus from corporate 156.7 46.0 240.7 of One Raffles Quay less diminution restructuring less in value of Myanmar hotels and impairment provision Indonesian Rupiah PATMI before revaluation 436.1 200.3 117.7 Share of revaluation gains from Net gain on revaluation of 343.6 - nm office portfolio investment properties PATMI after revaluation 779.7 200.3 289.3 7

Net Profit – By Geographical Location Geographical FY2007 FY2006 % Comments Location $m % $m % Chg Higher due mainly to contributions Singapore 168.8 60.4 56.2 36.4 200.4 from Reflections at Keppel Bay, Marina Bay Residences and Sixth Avenue Residences Other countries 110.6 39.6 98.1 63.6 12.7 Higher due to contributions from The Seasons, Villa Riviera and The Arcadia in China and Elita Promenade in India Surplus from ownership Surplus from 156.7 46.0 240.7 restructuring of One Raffles Quay corp. restructuring less diminution in value of less impairment Myanmar hotels and Indonesian provision Rupiah PATMI before 436.1 200.3 117.7 revaluation Net gain on 343.6 - nm Share of revaluation gains from revaluation of office portfolio investment properties PATMI after 779.7 200.3 289.3 revaluation 8

Notes on Profit Recognition Project % of % of Profit Recognised Sales Completion in FY2007 ($m) SINGAPORE Marina Bay Residences (428 units) 100 17.4 30.0 Park Infinia at Wee Nam (486 units) 92 79 69.0 Urbana (126 units) 100 100 15.5 Reflections at Keppel Bay (1,129 units) 51.3 7.3 18.6 OVERSEAS The Seasons, Beijing, China (1,859 units) Ph 1 (990 units) 100 100 38.2 Ph 2 (869 units) 99.6 93.8 8 Park Avenue, Shanghai, China (946 units) Ph 1 (85 units) 100 100 19.3 Ph 2 (371 units) 100 99.7 Ph 3 (96 units) 89.8 77.1 Villa Riviera, Shanghai, China (168 units) Ph 1 (42 units) 100 96.4 13.4 Ph 2 (46 units) 57.1 93.9 Elita Promenade, Bangalore, India (1,573 units) Ph 1 (944 units) 91.7 71.6 10.2 Ph 2 (629 units) 28.5 20.5 9

10 Operations Review

Singapore Residential Sold About 760 Units in 2007 Reflections at Keppel Bay • 1,129 units • Ph 1 (620 units) fully sold Park Infinia at Wee Nam • 486 units Reflections at Keppel Bay • 100% of 434 launched units sold Other Projects Fully Sold • The Suites at Central (157 units) • Freesia Woods (129 units) • Urbana (126 units) • The Linc (51 units) • The Elysia (40 units) Park Infinia at Wee Nam 11

Singapore Commercial 3.8m sf NLA Under Development in CBD and New Downtown Marina Bay Financial Centre Marina Bay Financial Centre • Both phases >50% pre-committed by major financial institutions NLA Anchor Tenant Completion Ph 1 1.6m sf (0.5m sf) 2010 Ph 2 1.3m sf (0.7m sf) 2012 Marina Bay Financial Centre Ocean Financial Centre Ocean Financial Centre • 43-storey Grade A office building • 850,000 sf NLA • Up to 23,000 sf column-free floor plates • Completion : 2011 Ocean Financial Centre 12

Singapore Commercial Completed Sale of 1/3 ORQ Stake to K-REIT Asia • Unlocking value and recycling capital into projects with higher returns • Surplus of $235.2 m from restructuring of one-third stake in One Raffles Quay • Gearing reduced substantially to 0.41 One Raffles Quay 13

Singapore Commercial K-REIT Asia Continues to Outperform • Distribution Per Unit (DPU) of 8.82 cents , up 30.5% from FY2006 • Asset size up 210% from $677m to $2.1b , with ORQ (1/3 interest) • Portfolio’s net lettable area up 57% from 73,108 sm to 114,426 sm • Full committed occupancy as at 31 Dec 2007 • K-REIT to raise up to $700 m through rights issue – KCL and KLL undertake to take up : � respective allocations of the Units and � any Units not subscribed for by minority Unitholders 14

Overseas Good Response to New Launches and Releases China China • Central Park City , Wuxi (4,700 units) - 80% of 728 launched units sold Central Park City, Wuxi • The Botanica Ph 3 , Chengdu (1,048 units) - 91% of 788 launched units sold • 8 Park Avenue , Shanghai (946 units) - 92% of latest 96 units released sold The Botanica (Ph 3), Chengdu India India • Elita Garden Vista , Kolkata (1,376 units) - 62% of 351 launched units sold Elita Garden Vista, Kolkata 15

Overseas Sold About 2,800 Units Overseas in 2007, Mostly in China and India China China • Beijing – The Seasons (1,859 units) : 100% sold • Chengdu The Seasons, Beijing – The Botanica Ph 2 (1,476 units) : 100% sold – The Waterfront (1,143 units) : 100% sold • Shanghai – Villa Riviera (168 units) - 82 units launched : 90% sold The Botanica (Ph 2), Chengdu India India • Bangalore – Elita Promenade (1,573 units) - 1,437 units launched : 82% sold The Waterfront, Chengdu Vietnam Vietnam • Ho Chi Minh City – Villa Riviera (101 units) : 100% sold Villa Riviera, HCMC 16

Overseas Expanded Presence in China Residential Township, Residential Development, Residential Township, Residential Development, Shenbei, Shenyang Nanhui, Shanghai Shenbei, Shenyang Nanhui, Shanghai • 26.4-ha site in Xinchang Town • 24-ha site in Shenbei New District • 3,000 homes comprising terrace • 5,400 units houses and apartment blocks • Launch : 2009 • Launch : 2009 17

Overseas Secured Eight Residential Projects in Vietnam in 2007 Site No. of Project Launch Location Units HCMC 6 7 The Estella An Phu Ward, 1 1,500 2008 (prime condo) District 2 Luxury Binh Thanh 2 waterfront 549 2008 8 District condo Luxury 2 3 1 waterfront District 7 2,394 2008 condo Waterfront Dong Nai 5 4 14,000 2010 township Province 5 Prime condo District 2 1,500 2009 Villa 6 District 9 204 2009 development 7 Prime condo District 9 1,939 2009 4 Dong Nai 8 township Luxury villa District 9 139 2009 3 Total No. of New Units 22,225 Existing Keppel Land developments Sixfold increase in landbank to 53 mil sf GFA Sixfold increase in landbank to 53 mil sf GFA 18

Overseas Entered the Middle East Market Jeddah, Saudi Arabia Jeddah, Saudi Arabia • 3.6-ha waterfront site in prestigious North Corniche residential precinct • 1,000 luxury seafront apartments • Launch : 2008 19

Overseas Scale Up Residential Township Developments 2007 2007 2006 2006 Residential Township Shenyang, China (5,400 units) 2005 2005 Residential Township Dong Nai, Vietnam Central Park City 2004 (14,000 units) 2004 Wuxi, China (4,700 units) Jakarta Garden City 2003 2003 Jakarta, Indonesia (7,000 units) The Botanica Saigon Sports City Chengdu, China HCMC, Vietnam (8,200 units) (3,000 units) Spread over 6 cities in 3 countries in the region Spread over 6 cities in 3 countries in the region 20

Fund Management Growth K-REIT Asia K-REIT Asia Total Assets Under Management * • Portfolio value up to S$2.1 bn with acquisition of US$4.0bn one-third stake in One Raffles Quay (S$6.1bn) 4.0 Alpha Alpha 3.5 US$2.3bn Funds Committed % No. of 3.0 (S$3.7bn) Equity Invested Countries b 2.5 Invested in US$1.4bn 2.0 AIB Alpha Japan Fund US$172m 26% 1 (S$2.3bn) (set up in 2007) (S$258m) 1.5 US$0.6bn Alpha Core Plus Real US$437m 100% 4 (S$1.0bn) 1.0 Estate Fund (S$720m) Asia No. 1 Property Fund US$243m 100% 5 0.5 (S$400m) 0.0 Islamic Shariah Fund US$119m ^ 100% 4 2004 2005 2006 2007 (S$180m) Alpha K-REIT Asia Total Assets Under Management of S$6.1 bn * Total Assets Under Management of S$6.1 bn * * When fully leveraged and invested 21 ^ Current portfolio