financial year 2007 results - keppel corporation. powerpoint slides.pdf · • asset size up . 210%...
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Financial Year 2007 ResultsFinancial Year 2007 Results29 Jan 2008
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Content
• Financial Performance
• Operations Review
• Market Outlook
• Going Forward
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Financial Performance
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PATMI more than tripled to $779.7 m
FY07 Financial Achievements
NTA / Share up 44% to $3.18
ROE of 46.2%
Net debt to equity ratio falls 60.6% to 0.41
* Excluding revaluation gains on investment properties
ROE of 25.8%*a new high
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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)
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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 33.3Special Dividend (¢) 12 - -
* Excluding revaluation gains on investment properties
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Net Profit – By Business SegmentBusiness FY2007 FY2006 % CommentsSegment $m $m ChgTrading 274.9 150.7 82.4
Investment 30.9 27.6 12.0
Fund Management 14.1 9.6 46.9Hotels / Resorts (1.1) (4.0) nmLess Interest and Overheads 39.4 29.6 nmSurplus from corporate 156.7 46.0 240.7
restructuring less impairment provision
PATMI before revaluation 436.1 200.3 117.7Net 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
Surplus from ownership restructuring of One Raffles Quay less diminution in value of Myanmar hotels and Indonesian Rupiah
Higher interest and overhead costs
Higher due mainly to write-back of tax provisions
Share of revaluation gains from office portfolio
Smaller loss due to lower depreciation
Including contribution from K-REIT Asia
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Net Profit – By Geographical LocationGeographical FY2007 FY2006 % CommentsLocation $m % $m % ChgSingapore 168.8 60.4 56.2 36.4 200.4
Other countries 110.6 39.6 98.1 63.6 12.7
Surplus from 156.7 46.0 240.7corp. restructuringless impairment provision
PATMI before 436.1 200.3 117.7revaluationNet gain on 343.6 - nm
revaluation of investment properties
PATMI after 779.7 200.3 289.3revaluation
Higher due mainly to contributions from Reflections at Keppel Bay, Marina Bay Residences and Sixth Avenue ResidencesHigher due to contributions from The Seasons, Villa Riviera and The Arcadia in China and Elita Promenade in India
Share of revaluation gains from office portfolio
Surplus from ownership restructuring of One Raffles Quay less diminution in value of Myanmar hotels and Indonesian Rupiah
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Notes on Profit RecognitionProject % of % of Profit Recognised
Sales Completion in FY2007 ($m)
SINGAPOREMarina Bay Residences (428 units) 100 17.4 30.0Park Infinia at Wee Nam (486 units) 92 79 69.0Urbana (126 units) 100 100 15.5Reflections at Keppel Bay (1,129 units) 51.3 7.3 18.6
OVERSEASThe Seasons, Beijing, China (1,859 units)
Ph 1 (990 units) 100 100 38.2Ph 2 (869 units) 99.6 93.8
8 Park Avenue, Shanghai, China (946 units)Ph 1 (85 units) 100 100 19.3Ph 2 (371 units) 100 99.7Ph 3 (96 units) 89.8 77.1
Villa Riviera, Shanghai, China (168 units)Ph 1 (42 units) 100 96.4 13.4Ph 2 (46 units) 57.1 93.9
Elita Promenade, Bangalore, India (1,573 units)Ph 1 (944 units) 91.7 71.6 10.2Ph 2 (629 units) 28.5 20.5
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Operations Review
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Singapore Residential Sold About 760 Units in 2007
Reflections at Keppel Bay
Park Infinia at Wee Nam
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
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)
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Singapore Commercial 3.8m sf NLA Under Development in CBD and New Downtown
• Both phases >50% pre-committed by major financial institutions
Marina Bay Financial CentreMarina Bay Financial Centre
Ocean Financial CentreOcean Financial Centre
• 43-storey Grade A office building
• 850,000 sf NLA
• Up to 23,000 sf column-free floor plates
• Completion : 2011
Marina Bay Financial Centre
Ocean Financial Centre
NLA Anchor Tenant Completion
Ph 1 1.6m sf (0.5m sf) 2010
Ph 2 1.3m sf (0.7m sf) 2012
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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
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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
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IndiaIndia
Overseas Good Response to New Launches and Releases
ChinaChina
• 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
• 8 Park Avenue, Shanghai (946 units)- 92% of latest 96 units released sold
• Elita Garden Vista, Kolkata (1,376 units)- 62% of 351 launched units sold
The Botanica (Ph 3), Chengdu
Elita Garden Vista, Kolkata
Central Park City, Wuxi
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Overseas Sold About 2,800 Units Overseas in 2007,
Mostly in China and IndiaChinaChina
• 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– Villa Riviera (168 units)
- 82 units launched : 90% sold
IndiaIndia
VietnamVietnam
• Bangalore– Elita Promenade (1,573 units)
- 1,437 units launched : 82% sold
• Ho Chi Minh City– Villa Riviera (101 units) : 100% sold
The Seasons, Beijing
The Botanica (Ph 2), Chengdu
The Waterfront, Chengdu
Villa Riviera, HCMC
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Overseas Expanded Presence in China
• 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
Residential Development,Nanhui, Shanghai
Residential Development,Nanhui, Shanghai
Residential Township,Shenbei, Shenyang
Residential Township,Shenbei, Shenyang
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Overseas Secured Eight Residential Projects in Vietnam in 2007
Project Site Location
No. of Units Launch
The Estella(prime condo)
An Phu Ward, District 2 1,500 2008
Luxury waterfront
condo
Binh Thanh District 549 2008
Luxury waterfront
condoDistrict 7 2,394 2008
Waterfront township
Dong Nai Province 14,000 2010
Prime condo District 2 1,500 2009
Villa development District 9 204 2009
Prime condo District 9 1,939 2009
Luxury villa District 9 139 2009
Total No. of New Units 22,225
1
2
3
4
5
6
7
8
2 1
3
5
6 7
4 Dong Nai township
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HCMC
Sixfold increase in landbank to 53 mil sf GFA Sixfold increase in landbank to 53 mil sf GFA Existing Keppel Land developments
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Overseas Entered the Middle East Market
• 3.6-ha waterfront site in prestigious North Corniche residential precinct
• 1,000 luxury seafront apartments
• Launch : 2008
Jeddah, Saudi ArabiaJeddah, Saudi Arabia
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Overseas Scale Up Residential Township Developments
The BotanicaChengdu, China
(8,200 units)
Jakarta Garden CityJakarta, Indonesia
(7,000 units)
Saigon Sports CityHCMC, Vietnam
(3,000 units)
Central Park CityWuxi, China(4,700 units)
Residential TownshipShenyang, China
(5,400 units)
Residential TownshipDong Nai, Vietnam
(14,000 units)
20032003
20042004
20052005
20072007
20062006
Spread over 6 cities in 3 countries in the regionSpread over 6 cities in 3 countries in the region
21* When fully leveraged and invested^ Current portfolio
• Portfolio value up to S$2.1 bn with acquisition of one-third stake in One Raffles Quay
Total Assets Under Management of S$6.1 bn *Total Assets Under Management of S$6.1 bn *
Fund Management Growth
K-REIT AsiaK-REIT Asia
AlphaAlphaFunds Committed % No. of
Equity Invested CountriesInvested in
AIB Alpha Japan Fund US$172m 26% 1(set up in 2007) (S$258m)
Alpha Core Plus Real US$437m 100% 4Estate Fund (S$720m)
Asia No. 1 Property Fund US$243m 100% 5(S$400m)
Islamic Shariah Fund US$119m ^ 100% 4(S$180m)
US$0.6bn (S$1.0bn)
US$1.4bn (S$2.3bn)
US$4.0bn (S$6.1bn)
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
2004 2005 2006 2007
Total Assets Under Management *
Alpha K-REIT Asia
US$2.3bn(S$3.7bn)
b
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Recent Corporate Awards
• BT Corporate Transparency Index (22 Jan 2008)– Ranked 4th 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
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• 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 (1st runner-up) - Spring City Golf &
Lake Resort, Kunming– Best Golf Course in Indonesia - Ria Bintan (Ocean Course)
Recent Awards for Product Excellence
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Market Outlook
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Singapore Residential Market
• Private residential prices up 31.2% in 2007 (URA)
• Record take-up of 14,826 new units in 2007, up 33% from 2006 (URA)
• High-end prices depend on outcome of US sub-prime problems
• Middle to mass market prices should move up gradually
Prices up 31% in 2007Prices up 31% in 2007Private Residential Take-up
and Price Index
0
5,000
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25,000
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1996
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Units
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IndexSecondary Take-up
Primary Take-up
Price Index
Source : URA and CBRE
Looking AheadLooking Ahead
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Singapore Office Market
• Grade A average rental of $17.15 psf at end-07, up 96.5% from $8.73 psf at end-06 (CBRE)
• Grade A occupancy of 99.8% at end-07 (CBRE)
• Take-up of 2.07m sf in 2007
• Strong demand from financial institutions, services and oil & gas companies
Rentals and Occupancy Continue to Rise Rentals and Occupancy Continue to Rise Office Rental and Occupancy
80
84
88
92
96
100
4Q04
1Q05
2Q05
3Q05
4Q05
1Q06
2Q06
3Q06
4Q06
1Q07
2Q07
3Q07
4Q07
0
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20Islandwide OccupancyGrade A OccupancyPrime RentalGrade A Rental
Source : URA and CBRE
% S$psf/mth
Looking AheadLooking Ahead
• With limited supply of 1.7m sf p.a. over next few years and good demand, rentals should continue to trend upwards
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HomeOwnershipAspirations
Promising residential markets in Asia and Middle EastPromising residential markets in Asia and Middle East
Overseas Residential Market
Economic Growth
Rising Affluence
Growing Middle Class and Expatriates
FavourableDemographics
Urbanisation Trends
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Going Forward
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Going Forward
SINGAPORESelectively acquire
commercial and residential sites
FUND MGTGrow funds under
management through Alpha and K-REIT Asia
OVERSEASContinue to pursue
residential and township developments
Recycle capital into new projects with higher returns
Unlock value from commercial assets in Singapore and overseas
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Singapore Redefining the Skyline and Waterfront Living
Marina Bay SuitesMarina Bay Residences
Ocean Financial CentreOne Raffles QuayMarina Bay Financial Centre Marina Bay SuitesMarina Bay Suites
• Stunning 65-storey tower
• 221 bay-view luxury apartments
• Unit sizes : 1,500 - 2,500 sf
• First residential showcase in Asia of world celebrated master architect Daniel Libeskind
• Launch more units at Reflections
Reflections at Keppel BayReflections at Keppel Bay Reflections at Keppel Bay
Marina at Keppel Bay
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Project Location Units to Launch
Reflections at Keppel Bay (30% stake) * Keppel Bay 400Park Infinia at Wee Nam * Wee Nam Rd 52Marina Bay Suites (33.3% stake) Marina Bay 221The Crest @ Cairnhill Cairnhill Circle 15The Tresor * Duchess Rd 34Madison Residences Bukit Timah Rd 56* Planned balance units
Singapore Residential Launches 2008
The Crest @ Cairnhill The Tresor Madison Residences
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* Balance units^ New launches
Project Launch Schedule Units to Launch2008 2009 2010
China8 Park Avenue, Shanghai * 138 197 67Villa Riviera, Shanghai * 94 - -The Botanica, Chengdu * 1360 1000 1000The Arcadia, Tianjin ^ 138 - -Central Park City, Wuxi * 862 801 829Mixed Development, Jiangyin ^ 458 760 -Residential Township, Shenyang ^ - 1146 572Residential Devt., Nanhui, Shanghai ^ - 608 699
The Arcadia, Tianjin Mixed Development, Jiangyin Central Park City, Wuxi
Overseas Residential Launches
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Project Launch Schedule Units to Launch2008 2009 2010
VietnamSaigon Sports City (Ph 1), HCMC ^ - 205 300The Estella, HCMC ^ 900 450 150Waterfront condo, Binh Thanh District, HCMC ^ 350 199 -Waterfront condo, District 7, HCMC ^ 550 275 475Waterfront township (Ph 1), Dong Nai Province ^ - - 300Prime condo, District 2, HCMC ^ - 410 410Villa devt., District 9, HCMC ^ - 100 104Prime condo, District 9, HCMC ^ - 300 350Luxury villa devt., District 9, HCMC ^ - 100 39
ThailandVilla Arcadia at Srinakarin, Bangkok * 50 50 50Villa Arcadia at Watcharapol, Bangkok ^ 40 40 40
IndiaElita Promenade, Bangalore * 388 - -Elita Horizon, Bangalore ^ 650 492 -Elita Garden Vista, Kolkata * 684 475 -
IndonesiaJakarta Garden City, Jakarta ^ 994 682 787
Middle EastSeafront condo devt., Jeddah, Saudi Arabia ^ 180 300 300
PhilippinesPalmdale Heights (Ph 2), Pasig City ^ 316 474 474SM-KL residential devt., Manila ^ - 430 -
* Balance units^ New launches
Overseas Residential Launches
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Launching about 8,200 units in 2008Launching about 8,200 units in 2008
Seafront Apartments (1,000 units)Jeddah, Saudi ArabiaSeafront Apartments (1,000 units)Jeddah, Saudi Arabia
The Arcadia, (168 units) Tianjin, China The Arcadia, (168 units) Tianjin, China
The Estella (1,500 units) HCMC, Vietnam The Estella (1,500 units) HCMC, Vietnam
Elita Horizon (1,142 units) Bangalore, India Elita Horizon (1,142 units) Bangalore, India
Overseas Residential Launches
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Thank You
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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.