On Wider Growth Results Announcement Half Year Ended 30 June 2015 30 th July 2015 1
Agenda Financial Performance Business Review Group Borrowings Outlook 2
Financial Performance Financial Highlights 1H2015 Achieves 60% increase in revenue to S$291.9 million and 58% rise in net profit to S$59.4 million Lifted by 67% growth in Property Development and seven-fold increase in Property Investment segment revenues Share of results of associates rose 38% to S$5.6 million Strong cash and cash equivalents of S$275.8 million with lowered gearing at 0.53 time Good headroom with a recently-established S$500.0 million multicurrency debt issuance programme 3
Financial Performance Financial Results 1H2015 1H2015 1H2014 % change Revenue (S$ m) 291.9 182.1 60% Gross Profit (S$ m) 86.7 55.5 56% Gross Margin (%) 30% 30% - Share of results of associates (net of tax) (S$'m) 5.6 4.1 38% Pre-tax profit (S$ m) 69.1 44.6 55% Net Profit (S$ m) 59.4 37.7 58% EPS (cts) 4.99 3.16 58% 4
Financial Performance Financial Performance Turnover Trend (S$ m) Record 1H turnover since 2007 Revenue increased by 60% to S$291.9m in 1H2015 $400.0 $350.0 $300.0 $250.0 $200.0 $150.0 $100.0 $50.0 $0.0 $163.5 $130.1 $44.1 $102.7 $30.1 $37.6 $40.6 $34.9 $19.6 $43.7 $41.7 $25.9 $16.6 $23.4 $38.1 $369.0 $317.8 $291.9 $169.7 $68.6 $216.9 $183.7 $190.6 $47.6 $67.2 $93.7 $42.1 $56.2 $53.1 $76.7 $102.5 $55.3 $44.4 $43.6 $46.8 $52.7 $68.9 $198.2* $60.9 $50.4 $79.5 $38.1 $53.7 2007 2008 2009 2010 2011 2012 2013 2014 2015 * Include a 100% revenue recognition from Centropod@Changi amounting to S$141.4m upon obtaining its TOP in Jan 2015. 60% 4Q 3Q 2Q 1Q 5
Financial Performance Financial Performance Profit Trend (S$ m) $120.0 Record 1H net profit since 2007 Net profit increased by 58% to S$59.4m in 1H2015 $100.0 $92.2 $96.8 $80.0 $60.0 $40.0 $20.0 $0.0 $46.6 $44.8 $58.3 $51.8 $42.8 $13.1 $11.9 $23.3 $12.4 $12.0 $16.1 $24.7 $27.9 $13.4 $8.2 $19.2 $8.9 $22.8 $2.9 $5.9 $19.5 $46.3 $8.7 $6.2 $16.5 $12.9 $17.8 $9.0 $2.5 $8.9 $9.4 $5.0 $2.7 $4.2 $6.4 $9.0 $10.0 $9.0 $11.8 $15.0 2007 2008 2009 2010 2011 2012 2013 2014 2015 58% $59.4 4Q 3Q 2Q 1Q 6
Financial Performance Segment Results 1H2015 Revenue (S$ m) Hotel Ownership, $21.6, 7% Property Investment, $6.1, 3% Property Investment, $0.9 Hotel Ownership, $23.4, 13% Property Development, $264.2*, 90% Property Development, $157.8, 87% 1H2015 Total S$291.9m 1H2014 Total S$182.1m * Include a 100% revenue recognition from Centropod@Changi amounting to S$141.4m upon obtaining its TOP in Jan 2015. 7
Financial Performance Segment Results 1H2015 Adjusted EBITDA* (S$ m) Property Investment -Rental income, $3.9, 4% Hotel Ownership, $6.2, 7% Property Investment -Fair value gain, $2.6, 3% Property Investment - Rental income, $0.3, 1% Hotel Ownership, $9.1, 16% Property Investment - Fair value gain, $4.3, 8% Property Development, $73.4, 86% Property Development, $41.7, 75% 1H2015 Total S$86.2m 1H2014 Total S$55.4m Excludes corporate expenses, depreciation of property, plant and equipment, finance cost (net), FV loss on CCS and gain on disposal of available-for-sale financial assets. 8
Financial Performance 30 Jun 15 31 Dec 14 Increase / (Decrease) Financial Position Total assets ( S$ m) 1,319.8 1,433.3-7.9% Total debt (S$ m) 765.9 917.3-16.5% Cash & cash equivalents ( S$ m) (1) 275.8 415.3-33.6% Net debt (S$ m) 490.1 502.0-2.4% Net assets value ( NAV ) (S$ m ) 440.3 400.3 10.0% Revaluation surplus (S$ m) (2) 476.4 460.4 3.5% Adjusted net assets value ( ANAV ) (S$ m) 916.7 860.7 6.5% Financial Ratios NAV per share (cents) 36.9 33.5 10.2% ANAV per share (cents) (2) 76.8 72.1 6.5% Cash holdings per share (cents) (1) 23.1 34.8-33.6% Net debt to ANAV (times) 0.53 0.58-8.6% Total debt to ANAV (times) 0.84 1.05-20.2% (3) Return on equity (%) 27.4 24.1 13.7% (1) Cash holdings include project account monies amounting to S$96.1m as at 30 June 2015 (31 December 2014: S$176.3m) (2) The fair value of the Grand Mercure Roxy Hotel and office premise were estimated to be S$553.4m (31 December 2014: S$553.4m) (3) Represents annualised return on equity 9
Business Review Property Development Results Announcement Half Year Ended 30 June 2015 30 th July 2015 10
Business Review Property Development Revenue from Property Development (S$ m) $450.0 $400.0 $350.0 $300.0 $264.2 $250.0 $200.0 $150.0 $100.0 $50.0 $157.8 $0.0 Spottiswo ode 18 Jupiter 18 (TOP: Jan 14) Space@Ko van Treescape The MKZ Jade Residence s Whitehav en Sunnyvale Trilive LIV on Wilkie LIV on Sophia Centropod @Changi (TOP: Jan 15) 1H2015 $0.0 $0.0 $3.6 $0.0 $0.0 $57.6 $38.5 $1.2 $2.6 $9.9 $9.5 $141.4 $264.2 1H2014 $54.3 $1.1 $46.2 $8.2 $25.0 $10.8 $11.3 $0.0 $0.0 $0.0 $0.9 $0.0 $157.8 Total Increase in revenue by 67% from S$157.8 million in 1H2014 to S$264.2 million in 1H2015 mainly due to revenue recognition on completion from Centropod@Changi, a commercial development project which obtained TOP in January 2015. 11
Business Review Property Development 1H2015 Share of results in associates (S$ m) 7.0 6.0 S$5.63 38% S$4.06 5.0 2.04 1.30 4.0 3.0 1.98 2.62 2.0 1.0 1.75 1.72 0.0-0.08 1H2015-0.06 1H2014-1.0-1.58-2.0 Natura@Hillview Eon Shenton NottingHill Millage Wisma Infinitum 12
Business Review Pre-Sale Revenue to be recognised by projects (S$ m) 1H2015 Project name Type of development Group stake Total units in project Unit sold Attributable total sale value (1) Attributable revenue recognised up to 30 Jun 2015 Balance attributable progress billings to be recognised from 3Q2015 % Unit % $'m $'m $'m 1 Millage Residential 48% 70 100% 23.5 14.0 9.5 Shop 48% 86 100% 28.7 17.1 11.6 2 Natura@Hillview Residential 49% 193 100% 72.2 67.3 4.9 3 Eon Shenton Office 20% 98 100% 60.1 14.6 45.5 Residential 20% 132 95% 38.1 9.2 28.9 Shop 20% 23 100% 4.8 1.2 3.6 4 Jade Residences Residential 100% 171 92% 193.6 100.7 92.9 Shop 100% 2 100% 1.7 0.9 0.8 5 Whitehaven Residential 100% 120 94% 140.8 76.4 64.4 Shop 100% 1 100% 1.2 0.7 0.5 6 LIV on Sophia Residential 90% 64 100% 78.5 18.4 60.1 7 LIV on Wilkie Residential 90% 81 78% 81.2 12.8 68.4 8 Sunnyvale Residences Residential 100% 30 47% 21.7 1.2 20.5 9 Trilive Residential 85% 222 32% 65.9 2.2 63.7 Shop 85% 2 50% 0.7 0.0 0.7 Grand-total 1,295 812.7 336.7 476.0 (1) Included Option to Purchase granted up to 21 July 2015 13
Business Review Landbank Location / Description Type Approximate Land Area Approximate Gross Floor Area Group s stake Approximate Attributable Gross Floor Area Approximate Attributable Land Cost Approximate Attributable Land Cost Overseas 1 Lot 3370, Section 41, Jalan Dewan Sultan Sulaiman, Kuala Lumpur, Malaysia (Wisma Infinitum) 2 Geran 319775 Lot 34534 Pekan Cheras, Daerah Ulu Langat, Negeri Selangor, Malaysia (1) (sqf) (sqf) % (sqf) (S$) (Foreign currency) Commercial & Residential Development 71,881 698,706 47% 328,391 S$16.9m RM42.2m Commercial Development 247,936 TBC 47% TBC S$13.9m RM37.3m 3 64 Peel Street and 9 Cordelia Street in Brisbane, Australia Commercial & Residential Development 27,674 332,271 40% 132,908 S$14.3m AUD13.4m 4 54 & 85 Bracks Street, North Fremantle, Australia (2) Industrial land; to be rezoned for commercial and residential use 489,284 TBC 20.2% TBC S$12.8m AUD11.9m (1) The completion of the acquisition of land is expected to take place on 24 August 2015. (2) The properties are currently zoned as Industrial by the relevant Australian authorities. Upon the completion of the rezoning for commercial and residential use of the properties, a decision will be made by the joint venture on the use of the property. 14
Business Review Hotel Ownership Results Announcement Half Year Ended 30 June 2015 30 th July 2015 15
Business Review Hotel Ownership 1H2015 AOR, ARR & RevPar (GMRH) RevPar decreased by 10% to S$149.9 in 1H2015 from S$167.5 in 1H2014 $230.0 94.0% $200.3 91.0% 88.0% $176.3 $154.4 85.0% $142.8 $147.0 82.0% 92.5% $126.7 79.0% 88.0% 86.2% 76.0% 73.0% $166.4 $156.7 $199.9 $188.3 $191.5 $184.5 $187.0 $178.1 $179.7 $172.2 $164.8 $168.2 $167.5 $149.9 94.2% 94.6% 89.9% 91.2% 89.6% 86.1% 87.1% $200.0 $170.0 $140.0 $110.0 $80.0 7.8% 10% 2.5% 70.0% FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 1H2014 1H2015 $50.0 AOR ARR RevPar 16
Business Review Hotel Ownership 1H2015 Hotel Revenue (S$m) (GMRH) 60.0 Hotel revenue decreased by 8% from S$23.4m in 1H2014 to S$21.6m in 1H2015 50.0 40.0 30.0 20.0 10.0 - $50.2 $48.5 $48.5 $46.4 $47.9 $44.5 11.6 11.7 12.3 $37.6 11.9 $37.3 11.8 11.4 9.9 9.9 12.5 12.5 11.8 9.8 9.0 12.6 12.0 11.0 9.1 8.7 13.1 12.2 12.5 $21.6 12.4 11.5 11.5 10.7 8.5 11.7 10.0 10.3 11.7 13.1 10.9 12.0 10.9 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 8% Q4 Q3 Q2 Q1 17
Business Review Hotel Ownership 1H2015 Hotel Net Operating Profits ( NOP ) (S$m) Hotel NOP decreased by 22% from S$8.5m in 1H2014 to S$6.6m in 1H2015 $25.0 $20.0 $16.8 $21.6 5.1 $17.7 $20.4 $19.6 5.2 4.2 $16.6 $17.5 $15.0 $10.0 $5.0 5.0 4.3 3.9 5.4 5.8 $13.3 4.5 3.7 4.7 3.2 3.0 4.6 5.4 5.2 5.0 4.8 4.3 4.4 4.2 4.3 4.7 4.0 22% 3.3 Q4 Q3 Q2 Q1 $0.0 3.6 5.3 3.4 3.9 4.8 5.4 3.7 4.5 3.3 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 18
Business Review Hotel under development Hotel Details Kyoto, Japan Phuket, Thailand Perth, Australia Location Nakagyo-ku, Kyoto Chalong Subdistrict, Mueang District Wellington Street Acquisition date October 2014 November 2014 March 2015 Group's stake 100% 100% 49% Tenure Freehold Freehold Freehold Land area (sq ft) 10,155 504,586 15,048 Attributable acquisition cost S$25.1 million (JPY 2.2 billion) S$16.8 million (THB 397.2 million) S$8.7 million (AUD 8.3 million) Description of development An existing hotel undergoing renovation and will be repositioned to an upscale boutique hotel Existing 13 villas and 2 adjacent land plots that will be developed into a full service villas resort A hotel development land parcel to be developed into a 23 level, 332 room Marriott Courtyard hotel Estimated date of completion of renovation/construction No. of rooms/villas on completion End 2015 2017 2017 81 rooms Approximately 85 villas 332 rooms 19
Business Review Property Investment Results Announcement Half Year Ended 30 June 2015 30 th July 2015 20
Business Review Property Investment 1H2015 Revenue (S$ m) Rental income increased from S$0.8m to S$6.1m mainly from office rental income from 59 Goulburn Street (acquired in July 2014) $7.0 $6.0 $6.1 $5.0 $4.0 $3.0 $2.0 $1.0 $0.0 $3.3 $5.2 $2.6 $1.5 $1.6 $1.8 $1.7 $1.6 $1.0 $0.8 $0.9 FY2010 FY2011 FY2012 FY2013 1H2014 1H2015 Kovan Centre Roxy Square 59 Goulburn Street 21
Business Review Investment Properties Description Net lettable Area/Floor Area Occupancy rate @ 30 Jun 2015 (on units) Valuation (1) Estimated Total Annual Gross Income sqm % S$'m S$'m Singapore 1 50 East Coast Road, Roxy Square (47 shop units) 2,320.0 96% 72.3 1.9 Overseas 2 No 59 Goulburn Street, Sydney Australia (commercial office building) 19,397.2 99% 101.1 10.5 Grand total 21,717.2 173.4 12.4 (1) based on latest valuation as of 30 June 2015. 22
Group Borrowing Results Announcement Half Year Ended 30 June 2015 30 th July 2015 23
Group Borrowing Debt Profile 30 Jun 15 31 Dec 14 Total borrowings S$765.9m S$917.3m Fixed rate loans S$344.6m S$349.5m Fixed rate loans as % of total loans 45% * 38% Weighted average term for fixed rates loans 29 months 35 months Weighted average interest rate (fixed rates loans) 2.84% 2.83% Weighted average interest rate (floating rates loans) 2.46% 2.08% Interest cover ratio (times) 12.2 12.1 * As at 30 June 2014, 19% of total loans were fixed rate loans 24
Group Borrowing Debt Profile as at 30 June 2015 (S$m) Working capital loans, $134.6, 17% Repayable in Mar 2016, $9.3, 1% $357.4m or 47% Development loans - unsold units in launched projects, $120.5, 16% Term loans (Hotel, Shops & Offices), $273.9, 36% Repayable in Apr 2016 to Mar 2020, $206.4, 27% Development loans - sold units in launched projects, $236.9, 31% Repayable after Apr 2020, $58.2, 8% Total outstanding debts of $765.9m as of 30 June 2015 25
Outlook 1. General - Singapore s GDP growth for 2015 is expected to be between 2% and 4%, consistent with the 2.9% growth last year 1. - Property Development - URA latest statistics on July 24, 2015, showed that prices of private residential properties decreased by 0.9% in 2nd Quarter 2015, compared to the 1.0% decline in the previous quarter. This was the seventh straight quarter of price decline 2. - Singapore remains our key market despite the property cooling measures. We will prudently seek projects and land acquisitions with good locations and niche positioning to protect our margins and shareholders interests. - We have expanded beyond Singapore into Australia and Malaysia. We are constantly searching for opportunities to forge strategic alliances to work closely with experienced partners to source and capitalise on opportunities overseas for our property development projects. 3. Hotel Ownership - Preliminary 2014 estimates from the Singapore Tourism Board indicated that visitor arrivals 2015 is forecast to grow between zero and 3% 3. - Nonetheless, the Singapore hospitality sector s outlook remains fairly optimistic with several government initiatives. - Our Group believes that the hotel and resort assets in Kyoto, Perth and Phuket will generate meaningful recurring income upon completion of refurbishment/construction in 2015 and 2017. 4. Property Investment - We have successfully sold all of the 21 strata retail floors for its investment property at 8 Russell Street, Hong Kong (Causeway Bay). - We will continue to actively look for acquisitions and investment opportunities that offer high yield potential. 4. Strong headroom with cash and cash equivalents of S$275.8 million, a S$500.0 million Multicurrency Debt Issuance Programme and low net gearing of 0.53 time. 5. Barring any unforeseen circumstances, the directors expect the Group to be profitable in 2015. 1. Singapore Budget, Feb 23, 2015 - http://www.singaporebudget.gov.sg/budget_2015/pa.aspx 2. Urban Redevelopment Authority, Jul 24, 2015 - http://www.ura.gov.sg/uol/media-room/news/2015/jul/pr15-39.aspx 3. Straits Times, Apr 20, 2015 26
SETTING OUR SIGHTS On Wider Growth THANK YOU Results Announcement Half Year Ended 30 June 2015 30 th July 2015 27