Financial Year 2007 Results 29 Jan 2008
Content Financial Performance Operations Review Market Outlook Going Forward 2
Financial Performance 3
FY07 Financial Achievements PATMI more than tripled to $779.7 m ROE of 46.2% ROE of 25.8%* a new high 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 Trading 274.9 150.7 82.4 Investment 30.9 27.6 12.0 Fund Management 14.1 9.6 46.9 Hotels / Resorts (1.1) (4.0) nm Less Interest and Overheads 39.4 29.6 nm Surplus from corporate 156.7 46.0 240.7 restructuring less impairment provision PATMI before revaluation 436.1 200.3 117.7 Net gain on revaluation of 343.6 - nm investment properties PATMI after revaluation 779.7 200.3 289.3 Higher due mainly to contributions from 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 Higher due mainly to write-back of tax provisions Including contribution from K-REIT Asia Smaller loss due to lower depreciation Higher interest and overhead costs Surplus from ownership restructuring of One Raffles Quay less diminution in value of Myanmar hotels and Indonesian Rupiah Share of revaluation gains from office portfolio 7
Net Profit By Geographical Location Geographical FY2007 FY2006 % Comments Location $m % $m % Chg Singapore 168.8 60.4 56.2 36.4 200.4 Other countries 110.6 39.6 98.1 63.6 12.7 Surplus from 156.7 46.0 240.7 corp. restructuring less impairment provision PATMI before 436.1 200.3 117.7 revaluation Net gain on 343.6 - nm revaluation of investment properties PATMI after 779.7 200.3 289.3 revaluation Higher due mainly to contributions from Reflections at Keppel Bay, Marina Bay Residences and Sixth Avenue Residences Higher due to contributions from The Seasons, Villa Riviera and The Arcadia in China and Elita Promenade in India Surplus from ownership restructuring of One Raffles Quay less diminution in value of Myanmar hotels and Indonesian Rupiah Share of revaluation gains from office portfolio 8
Notes on Profit Recognition Project % of % of Profit Recognised Sales Completion in FY2007 ($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
Operations Review 10
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 100% of 434 launched units sold Reflections at Keppel Bay 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 Marina Bay Financial Centre Ph 2 1.3m sf (0.7m sf) 2012 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 The Botanica Ph 3, Chengdu (1,048 units) - 91% of 788 launched units sold Central Park City, Wuxi 8 Park Avenue, Shanghai (946 units) - 92% of latest 96 units released sold India India The Botanica (Ph 3), Chengdu 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 Botanica Ph 2 (1,476 units) : 100% sold The Waterfront (1,143 units) : 100% sold Shanghai India India Villa Riviera (168 units) Bangalore - 82 units launched : 90% sold Elita Promenade (1,573 units) - 1,437 units launched : 82% sold The Seasons, Beijing The Botanica (Ph 2), Chengdu The Waterfront, Chengdu Vietnam Ho Chi Minh City Villa Riviera (101 units) : 100% sold Villa Riviera, HCMC 16
Overseas Expanded Presence in China Residential Development, Nanhui, Shanghai Residential Township, Shenbei, Shenyang 26.4-ha site in Xinchang Town 3,000 homes comprising terrace houses and apartment blocks Launch : 2009 24-ha site in Shenbei New District 5,400 units Launch : 2009 17
Overseas Secured Eight Residential Projects in Vietnam in 2007 HCMC 2 1 5 6 7 8 1 2 3 4 Project The Estella (prime condo) Luxury waterfront condo Luxury waterfront condo Waterfront township Site Location An Phu Ward, District 2 Binh Thanh District No. of Units Launch 1,500 2008 549 2008 District 7 2,394 2008 Dong Nai Province 14,000 2010 5 Prime condo District 2 1,500 2009 6 Villa development District 9 204 2009 7 Prime condo District 9 1,939 2009 3 4 Dong Nai township 8 Luxury villa District 9 139 2009 Existing Keppel Land developments Total No. of New Units 22,225 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 2003 The Botanica Chengdu, China (8,200 units) 2004 2005 Jakarta Garden City Jakarta, Indonesia (7,000 units) Saigon Sports City HCMC, Vietnam (3,000 units) 2006 Central Park City Wuxi, China (4,700 units) Residential Township Shenyang, China (5,400 units) Residential Township Dong Nai, Vietnam (14,000 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 4.0 3.5 3.0 2.5 2.0 1.5 1.0 0.5 0.0 Total Assets Under Management * US$0.6bn (S$1.0bn) US$1.4bn (S$2.3bn) US$4.0bn (S$6.1bn) 2004 2005 2006 2007 Alpha US$2.3bn (S$3.7bn) b K-REIT Asia Portfolio value up to S$2.1 bn with acquisition of one-third stake in One Raffles Quay Alpha Alpha Funds Committed % No. of Equity Invested Countries Invested in AIB Alpha Japan Fund US$172m 26% 1 (set up in 2007) (S$258m) Alpha Core Plus Real US$437m 100% 4 Estate Fund (S$720m) Asia No. 1 Property Fund US$243m 100% 5 (S$400m) Islamic Shariah Fund US$119m ^ 100% 4 (S$180m) Total Assets Under Management of S$6.1 bn * Total Assets Under Management of S$6.1 bn * * When fully leveraged and invested ^ Current portfolio 21
Recent Corporate Awards BT Corporate Transparency Index (22 Jan 2008) Ranked 4 th out of 675 companies SIAS Investors Choice Awards 2007 Runner-up or Most Transparent Company Award in Property category Finance Asia Best Managed Companies Among Top Five in Singapore for : Best Managed Company Most Committed to Corporate Governance Best Investor Relations 22
Recent Awards for Product Excellence BCA Green Mark Award Gold Award for Marina Bay Residences (2007) Vietnam Economic Times Golden Dragon Award 2007 Sedona Suites Hanoi The Guide Awards - Suave Choice Apartments 2007 Sedona Suites Hanoi Sedona Suites HCMC Asian Golf Monthly Awards 2007 Best Golf Resort in Asia (1 st runner-up) - Spring City Golf & Lake Resort, Kunming Best Golf Course in Indonesia - Ria Bintan (Ocean Course) 23
Market Outlook 24
Singapore Residential Market Private Residential Take-up and Price Index Prices up 31% in 2007 Prices up 31% in 2007 Units 40,000 35,000 Secondary Take-up Primary Take-up Index 180 Private residential prices up 31.2% in 2007 (URA) 30,000 25,000 Price Index 160 140 Record take-up of 14,826 new units in 2007, up 33% from 2006 (URA) 20,000 15,000 120 Looking Ahead Looking Ahead 10,000 5,000 100 High-end prices depend on outcome of US sub-prime problems 0 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 80 Middle to mass market prices should move up gradually Source : URA and CBRE 25
Singapore Office Market 100 Office Rental and Occupancy % S$psf/mth 96 92 88 Islandwide Occupancy Grade A Occupancy Prime Rental Grade A Rental 20 18 16 14 12 10 8 6 Rentals and Occupancy Continue to Rise Rentals and Occupancy Continue to Rise Grade A average rental of $17.15 psf at end-07, up 96.5% from $8.73 psf at end-06 (CBRE) Grade A occupancy of 99.8% at end-07 (CBRE) Take-up of 2.07m sf in 2007 Strong demand from financial institutions, services and oil & gas companies 84 80 4Q04 1Q05 2Q05 3Q05 4Q05 Source : URA and CBRE 1Q06 2Q06 3Q06 4Q06 1Q07 2Q07 3Q07 4Q07 4 2 0 Looking Ahead Looking Ahead With limited supply of 1.7m sf p.a. over next few years and good demand, rentals should continue to trend upwards 26
Overseas Residential Market Promising residential markets in Asia and Middle East Promising residential markets in Asia and Middle East Economic Growth Rising Affluence Favourable Demographics Growing Middle Class and Expatriates Home Ownership Aspirations Urbanisation Trends 27
Going Forward 28
Going Forward Unlock value from commercial assets in Singapore and overseas Recycle capital into new projects with higher returns SINGAPORE Selectively acquire commercial and residential sites OVERSEAS Continue to pursue residential and township developments FUND MGT Grow funds under management through Alpha and K-REIT Asia 29
Singapore Redefining the Skyline and Waterfront Living Marina Bay Financial Centre One Raffles Quay Ocean Financial Centre Marina Bay Suites Marina Bay Suites Stunning 65-storey tower 221 bay-view luxury apartments Unit sizes : 1,500-2,500 sf Marina Bay Residences Marina Bay Suites Reflections at Keppel Bay Reflections at Keppel Bay Reflections at Keppel Bay First residential showcase in Asia of world celebrated master architect Daniel Libeskind Launch more units at Reflections Marina at Keppel Bay 30
Project Location Units to Launch Reflections at Keppel Bay (30% stake) * Keppel Bay 400 Park Infinia at Wee Nam * Wee Nam Rd 52 Marina Bay Suites (33.3% stake) Marina Bay 221 The Crest @ Cairnhill Cairnhill Circle 15 The Tresor * Duchess Rd 34 Madison Residences Bukit Timah Rd 56 * Planned balance units Singapore Residential Launches 2008 The Crest @ Cairnhill The Tresor Madison Residences 31
Overseas Residential Launches Project Launch Schedule Units to Launch 2008 2009 2010 China 8 Park Avenue, Shanghai * 138 197 67 Villa Riviera, Shanghai * 94 - - The Botanica, Chengdu * 1360 1000 1000 The Arcadia, Tianjin ^ 138 - - Central Park City, Wuxi * 862 801 829 Mixed Development, Jiangyin ^ 458 760 - Residential Township, Shenyang ^ - 1146 572 Residential Devt., Nanhui, Shanghai ^ - 608 699 * Balance units ^ New launches The Arcadia, Tianjin Mixed Development, Jiangyin Central Park City, Wuxi 32
Project Launch Schedule Overseas Residential Launches Units to Launch 2008 2009 2010 Vietnam Saigon Sports City (Ph 1), HCMC ^ - 205 300 The Estella, HCMC ^ 900 450 150 Waterfront condo, Binh Thanh District, HCMC ^ 350 199 - Waterfront condo, District 7, HCMC ^ 550 275 475 Waterfront township (Ph 1), Dong Nai Province ^ - - 300 Prime condo, District 2, HCMC ^ - 410 410 Villa devt., District 9, HCMC ^ - 100 104 Prime condo, District 9, HCMC ^ - 300 350 Luxury villa devt., District 9, HCMC ^ - 100 39 Thailand Villa Arcadia at Srinakarin, Bangkok * 50 50 50 Villa Arcadia at Watcharapol, Bangkok ^ 40 40 40 India Elita Promenade, Bangalore * 388 - - Elita Horizon, Bangalore ^ 650 492 - Elita Garden Vista, Kolkata * 684 475 - Indonesia Jakarta Garden City, Jakarta ^ 994 682 787 Middle East Seafront condo devt., Jeddah, Saudi Arabia ^ 180 300 300 Philippines Palmdale Heights (Ph 2), Pasig City ^ 316 474 474 SM-KL residential devt., Manila ^ - 430 - * Balance units ^ New launches 33
Overseas Residential Launches The The Arcadia, Arcadia, (168 (168 units) units) Tianjin, Tianjin, China China Seafront Seafront Apartments Apartments (1,000 (1,000 units) units) Jeddah, Jeddah, Saudi Saudi Arabia Arabia The The Estella Estella (1,500 (1,500 units) units) HCMC, HCMC, Vietnam Vietnam Elita Elita Horizon Horizon (1,142 (1,142 units) units) Bangalore, Bangalore, India India Launching about 8,200 units in 2008 Launching about 8,200 units in 2008 34
Thank You 35
This release may contain statements which are subject to risks and uncertainties that could cause actual results to differ materially from such statements. You are cautioned not to place undue reliance on such statements, which are based in the current views of Management on future developments and events. 36