Investor Meetings February 2006 1 Highlights Introduction - PowerPoint PPT Presentation

Investor Meetings February 2006 1

Highlights Introduction � Highlights � Operations Review � Market Outlook � Going Forward � 2

Introduction 3

Introduction One of the largest listed property companies in � Singapore by total assets ($5.5 bil @ 31 Dec 2005) Established developer of quality housing and � investment­grade offices Diversified in Asia with focus in Singapore, China, � India, Vietnam, Indonesia and Thailand Current focus on property development for sale in � growth cities in Asia and property fund management 4

Expansion Drive Gain foothold in new countries, cities and segments � � Secured residential site in Bangalore � Secured villa site in Tianjin and township site in Wuxi Developing residential townships in the region � � Over 20,000 units in the pipeline : Chengdu, China � Ho Chi Minh City, Vietnam � Jakarta, Indonesia � Wuxi, China � 5

Highlights of FY05 6

Snapshot Financial PATMI 17.3% to $155.7m � ROE from 8.6% to 9.5% � Overseas earnings from 43% to 59% of PATMI � Operations Awarded BFC site at New Downtown � One Raffles Quay 70% pre­committed � Homes sold : 2,700 overseas � (including Ph1 ­ 970 units of township in China) 600 in Singapore 7

Financial Performance $m FY2005 FY2004 % Chg Turnover 586.4 476.2 23.1 EBITDA 163.9 124.5 31.6 Operating Profit 146.6 111.1 32.0 Pre­tax Profit 183.4 139.9 31.1 PATMI before EI 154.5 132.7 16.4 EI 1.2 * ­ nm PATMI after EI 155.7 132.7 17.3 Overseas Earnings (% of PATMI) 59.0 43.3 58.6 EPS (¢) 21.8 18.7 16.6 NTA/Share ($) 2.35 2.26 4.0 Debt/Equity Ratio 1.14 0.96 18.8 Annualised ROE (%) 9.5 8.6 10.5 * Being the Group’s share of $37.8m gain from Bugis Junction transactions less $36.6m provision for diminution in value of the Group’s investment in associated companies ($14.9m) and hotels in Myanmar ($21.7m) 8

Recent Awards Recognition for Corporate Transparency Business Times ­ Corporate Transparency Index 2005 � Only property developer in Top 20 list – SIAS Investors’ Choice Awards 2005 � Runner­up for Most Transparent Company under Properties category – Merit Award for Singapore Corporate Governance Award – Storebrand’s “Best In Class” Status � For environmental and social performance reporting – 9

Recent Awards Recognition for Product Excellence � The Waterfront, Chengdu ­ Most Popular Residential Development with Foreigners by China City Property Exposition � 8 Park Avenue, Shanghai ­ Top 10 Foreign Developers by Shanghai Real Estate Trade Association � The Botanica, Chengdu ­ Model Residential Development for International Community by Chengdu Real Estate Brand Promotion Centre � Tianjin Merryfield ­ Company with the Most Potential Property Development Co. by Jinnan District Government � Saigon Centre, HCMC ­ Gold Medal Vietnam Quality Award by Ministry of Science, Technology and Environment � Royal Park, Hanoi ­ Golden Dragon Prize from Vietnam Ministry of Planning and Investment 10

Operations Review 11

Operations Review Singapore Residential About 600 units sold � Good sales at new launches: � � Park Infinia at Wee Nam : 192 (96%) of 200 launched units sold � The Belvedere : 116 (97%) of 120 launched units sold Sold two Cluny Hill bungalow plots � 12

Operations Review Singapore Office One Raffles Quay : 70% pre­committed � Blue chip tenants include : � � ABN AMRO � Deutsche Bank � UBS � Ernst & Young � Soc Gen Private Banking � Barclays Capital 90% pre­commitment � targeted by TOP (2H2006) 13

Operations Review Singapore Office Awarded Business & Financial Centre � (BFC) site (Total GFA : 438,000 sm) Embarking on Ph 1 (GFA : 244,000 sm) � � > 70% for office One Marina Boulevard � Rest or 64,000 sm mainly for One Raffles Quay residential The Sail @ Marina Bay � Marketing Ph 1 residential end­2006 Bayfront MRT Station Landmark MRT Station � Ready by 2010 Integrated Resort & Casino 8 years option for the rest � 14

Operations Review Singapore Set up K­REIT Asia � � Initial portfolio of 4 prime office buildings � Value : S$630m � Total NLA : 73,300 sm � Avg occupancy : 95% � Distribution in specie : One unit for every five KLL shares � Retention by KLL : 40% � Listed by : End­1Q06 15 Prudential Tower (10 floors) Keppel Towers / GE Tower Bugis Junction Towers

Operations Review Overseas About 2,700 units sold, mostly in China (2,400 units) and � India (328 units) Gained control of Dragon Land with current 67% stake � � Additional platform for middle­income housing in China 16

Operations Review Fund Management Strong interest in Asia from investors � Assets Under Management (AUM) about US$1.4 bil when two � funds are fully invested � Asia No. 1 Property Fund (US$243m equity) � 85% of fund invested in Hong Kong, Singapore, Malaysia, South Korea and Japan � Alpha Core Plus Real Estate Fund (US$165m equity in 1st closing) � 44% of fund invested in Japan and Singapore � Second closing in early 2006 meeting with good response 17

Market Outlook 18

Singapore Residential Market Strong market recovery in 2005 � � Almost 9,000 new units sold, up 74% from 2003 � Price index up 3.9%, highest since 1999 � Good demand and price increase for higher­end properties with unique qualities Sales to improve with economic growth � 19

Residential Demand and Prices on the Uptrend URA Private Residential Demand and Price Index Units Index 12,000 181.4 Total Primary Demand 180 173.1 Price Index 10,000 9,565 9,485 8,955 160 8,171 151.6 8,000 7,189 140 134.2 6,096 132.8 5,785 6,000 5,520 5,406 5,156 120 4,000 118.2 117.2 115.1 113.8 112.8 100 2,000 100 0 80 1996 1997 1998 1999 2000* 2001 2002 2003 2004 2005 * Data includes completed new units sold from Year 2000 onwards Source : URA 20

Singapore Office Market Highest take­up (almost 2 mil sf) in 5 years � � Grade A office occupancy : 92.5% (Source : CBRE) � Avg Grade A office rentals : $5.70 psf, up 23.3% (Source : CBRE) Continued demand for prime office space � Future Supply of Office Space Limited new supply of mil sf � 2.1 2.00 < 1 mil sf p.a. for next few years 1.65 10­15 yr average annual take­up 1.4 Pre­committed space at ORQ 0.7 0.59 0 2006 2007 2008 2009 2010 21

Further Upside for Office Rentals and Occupancy % S$psf/mth Islandwide Occupancy 92 8 Prime Rentals 7 90 6 88 5 86 87.2% 4 84 3 82 2 80 1 78 0 1Q01 2Q01 3Q01 4Q01 1Q02 2Q02 3Q02 4Q02 1Q03 2Q03 3Q03 4Q03 1Q04 2Q04 3Q04 4Q04 1Q05 2Q05 3Q05 4Q05 Source : URA, CBRE 22

Market Outlook ­ Overseas Sustainable genuine demand for quality housing and � townships in Asia Housing demand underpinned by economic growth, � urbanisation, favourable demographics trends and positive government policies 23

Going Forward 24

Going Forward ­ Singapore Launch residential units including � waterfront projects Caribbean at � Keppel Bay Phase 2 (designed Keppel Bay Keppel Bay Phase 2 by Daniel Libeskind) � BFC Phase 1 residential homes Develop and market BFC to capitalise on transformation of � Marina Bay List K­REIT Asia in 1Q06 � Submit competitive bid for IRs with Harrah’s � 25

Going Forward ­ Integrated Resort Jointly in bid with Harrah’s for both IR sites at Marina Bay � and Sentosa � Forged alliances with some of the finest industry players : � MICE specialists SMG, CEMS and Suntec Singapore � Live entertainment company AEG Live � High­end retail and shopping mall developers Gordon Group and Taubman Asia � Cultural Institution Centre Pompidou Renowned architect Daniel Libeskind to design Marina Bay IR � 26

Going Forward ­ Integrated Resort BFC ORQ Marina Bay IR The Esplanade Source : URA “Necklace of attractions" in the Marina Bay ­ the IR, the Business Financial Centre and The Esplanade. Marina Bay IR � Land price : $1.2 bil � Site area : 20.6 ha � GFA : 270,000 ­ 570,000 sm 27

Possible Residential Launches ­ Singapore 2006 Units to Project Location Launch Devonshire Rd (60% stake) Devonshire Rd 100 BFC (Ph1) Residential (33.3% stake) Marina Blvd/Central Blvd 200 Keppel Bay Phase 2 (30% stake) Keppel Bay Drive 200 Avenue Park (52% stake) Sixth Avenue 100 Caribbean at Keppel Bay * Keppel Bay Drive 126 # Park Infinia at Wee Nam * Wee Nam Rd 294 Urbana * River Valley Rd 35 The Belvedere * Meyer Rd 51 * Existing launches # Excluding 168 units set aside for corporate leasing 28

Going Forward ­ Overseas Launch new residential projects including : � � Villas in Shanghai and Tianjin, China � Townships in Chengdu, China and Jakarta, Indonesia Keep up expansion drive in promising markets in Asia � Continue to pursue residential and township � developments 29