roxy-pacific holdings limited

Roxy-Pacific Holdings LimitedEstablished Specialty Property and Hospitality Group

Results Announcement1st Quarter Ended 31 March 20133 May 2013

Agenda

Financial Performance

Business Review

Group Borrowings

Outlook


Financial Performance


Financial Highlights – 1Q2013

Record net profit in 1Q2013. Net profit surges 31% to S$11.8 m

41% revenue growth due to higher revenue recognition from Property Developmentand Property Investment segments

Sustained earnings visibility with progress billings of S$918.4 m, profits of which willbe progressively recognised from 2Q2013 to FY2017

Strong financial flexibility with cash and cash equivalents of S$255.4 m and a S$200 mMulticurrency Medium Term Note Programme established in March 2013



Financial Results – 1Q2013

1Q2013 1Q2012 % change

Revenue (S$’m) 53.7 38.1 41%

Gross Profit (S$’m) 18.3 16.6 10%

Gross Margin (%) 34% 44% -10%

Pre-tax Profit (S$’m) 14.4 11.1 30%

Net Profit (S$’m) 11.8 9.0 31%

EPS (cts) 1.24 0.95 31%

(1) EPS has been adjusted for the bonus issue in 2012.

(1)


Financial PerformanceTurnover Trend (S$’ m)

Revenue increased by 41% to S$53.7 m in 1Q2013 from S$38.1 m in 1Q2012

$16.6 $23.4$38.1

$60.9 $50.4 $38.1$53.7$25.9

$41.7$43.7

$55.3$46.8

$52.7$19.6

$34.9$37.6

$53.1

$44.4 $43.6

$40.6

$30.1

$44.1

$47.6

$42.1 $56.2

$0.0

$50.0

$100.0

$150.0

$200.0

$250.0

2007 2008 2009 2010 2011 2012 2013

4Q

3Q

2Q

1Q

$102.7

$130.1

$163.5

$216.9

$183.7 $190.6

41%


Financial PerformanceProfit Trend (S$’ m)

Net profit increased 31% to S$11.8 m in 1Q2013 as compared to S$9 m in 1Q2012

$2.7 $4.2 $6.4 $9.0 $10.0 $9.0 $11.8$5.0$8.9

$9.4$12.9

$16.5 $17.8

$2.5

$8.7 $6.2

$8.9

$13.4$8.2

$9.0

$2.9 $5.9

$12.0

$11.9 $23.3

$0.0

$10.0

$20.0

$30.0

$40.0

$50.0

$60.0

$70.0

2007 2008 2009 2010 2011 2012 2013

4Q

3Q

2Q

1Q$19.2

$24.7$27.9

$42.8

$51.8

$58.3

31%

$42.4

$24.6

$11.3

$13.5

$-

$10.0

$20.0

$30.0

$40.0

$50.0

$60.0

1Q2013 1Q2012

Property Development Hotel Ownership & Property Investment


Segment Results – 1Q2013Revenue (S$’m)

$53.7

$38.172%

16%

79%

21%

35%

65%

$10.9

$6.7

$2.9

$4.4

$0.6

$0.0

$2.0

$4.0

$6.0

$8.0

$10.0

$12.0

$14.0

$16.0

1Q2013 1Q2012

Property Development Hotel Ownership and Property Investment

Gain on disposal of available-for-sale financial asset


Segment Results – 1Q2013Pre-tax Profits (S$’m)

$14.4$11.1

62%

34%

76%

20%

4%

61%

39%

(1) Cash holdings include project account monies amounting to S$136.0 m as at 31 March 2013 (31 December 2012: S$131.5 m)

Total assets ( S$’m) 1,031.8 924.1 11.7%

Total debts (S$‘m) 704.6 611.4 15.2%

Cash & cash equivalents ( S$‘m) 255.4 253.2 0.9%

Net Assets Value (“NAV”) ( S$‘m) 265.3 253.6 4.6%

Adjusted Net Assets Value (“ANAV”) (S$‘m) 647.4 638.1 1.5%

NAV per share (cents) 27.78 26.56 4.6%

ANAV per share (cents) (2) 67.80 66.83 1.5%

Cash holdings per share (cents) (1) 26.75 26.52 0.9%

Net Debt to ANAV (times) 0.69 0.56 23.2%

Return on Equity (%) 18.1 23.0 (21.3%)

(1)

(2)

(2) The fair value of Grand Mercure Roxy Hotel was estimated to be S$440.0 m as at 31 March 2013 & 31 December 2012

31 Mar 13 31 Dec 12 Increase / (Decrease)



Business ReviewProperty Development


$2.9

$4.7

$5.2

$4.8

$3.3

$0.3

$23.5$9.7

$5.4

1.8

$2.3

$3.0

0

5

10

15

20

25

30

35

40

45

1Q2013 1Q2012

The MKZ

Treescape

Space@Kovan

Spottiswoode 18

Straits Residences

Jupiter 18

Studios@Tembeling (TOP: Jul 12)

Nova 88 (TOP: Apr 12)

The Verte (TOP: Jan 12)

Revenue from Property Development (S$’m)Business ReviewProperty Development

Increase in revenue by 72%from $24.6 m in 1Q2012 to$42.4 m in 1Q2013

Mainly due to

• Recognition of higherrevenue from StraitsResidences, Jupiter 18,Spottiswoode 18 &Space@Kovan

• Recognition of newdevelopment projects –Treescape & The MKZ.

• Partly offset by absenceof revenue recognitionfrom The Verte, Nova 88& Studios@Tembeling


$42.4

$24.6

72%

Attributable PD revenue from JV projects $11.2 $2.3 387%

Total Group PD Revenue (including JV projects) $53.6 $26.9 99%

1Q2013 1Q2012 % change

Group PD Revenue $42.4 $24.6 72%

Attributable Revenue from Property Development (“PD”)– including JV projects (S$’m)



Jupiter 18,$4.8 , 9%

StraitsResidences,

$3.3 , 6%

Spottiswoode18, $23.5 , 44%

Space@Kovan,$5.4 , 10%

Treescape, $2.3, 4%

The MKZ,$3.0 , 6%

Haig 162, $1.6 ,3%

Eon Shenton,$1.0 , 2%

Natura@Hillview, $6.8 , 13%

NottinghillSuites, $1.8 ,

3%

JV projects,$11.2 , 21%

1Q2013

The Verte, $2.9 ,

11%Nova 88,

$4.7 , 18%

Studios@Tembeling

, $5.2 ,19%

StraitsResidences

, $0.3 ,1%

Spottiswoode 18,

$9.7 , 36%

Space@Kovan,

$1.8 , 7%

Haig 162,$2.3 , 8%

JV project,$2.3 , 8%

1Q2012

$0.2 $0.4

$1.0

$0.3

$(0.2)

$0.2

$0.1

$(0.5)

$-

$0.5

$1.0

$1.5

$2.0

1Q2013 1Q2012

Haig 162 Natura@Hillview Eon Shenton NottingHill Suites

Share of results in associates (S$’m)Business ReviewProperty Development


$0.3

$1.8

573%

$188.4

$336.5 $346.2

$471.6

$751.2

$1,031.5

$1,142.0

$53.0 $78.7 $65.4$143.0 $152.6 $169.8

$223.6

$0.0

$200.0

$400.0

$600.0

$800.0

$1,000.0

$1,200.0

2007 2008 2009 2010 2011 2012 1Q13

Sales value Revenue recognised


Strong attributable progress billings to be recognised (S$’m)Business ReviewProperty Development

(1) Based on Option to Purchase granted up to 24 April 2013

$861.7

$918.4

(1)

Increased by6.6% compared

to FY2012


Strong attributable progress billings to be recognised – By Projects (S$’m)

(1) Based on Option to Purchase granted up to 24 April 2013 (2) Launched in April 2013


Project name Type of developmentGroupstake

Total unitsin project

Unitsold

Attributable totalsale value (1)

Attributablerevenue

recognised up to31 Mar 2013

Balance attributableprogress billings to be

recognised from 2Q2013% Unit % S$'m S$'m S$'m

1 Haig 162 Residential 45% 99 100% 26.3 25.7 0.6

2 Straits Residences Residential 100% 30 97% 19.6 13.9 5.7

3 Jupiter 18 Residential 100% 53 100% 35.8 21.3 14.5

4 Space@Kovan Shop 100% 56 100% 46.6 10.0 36.6Residential 100% 140 100% 113.1 24.2 88.9

5 Spottiswoode 18 Residential 100% 251 100% 254.4 101.2 153.2

6 Nottinghill Suites Residential 45% 124 100% 39.5 5.7 33.8

7 Wis@Changi Shop 100% 7 100% 4.9 - 4.9Restaurant 100% 16 100% 12.9 - 12.9

office 100% 60 100% 60.5 - 60.5

8 Centropod@Changi Shop 100% 108 100% 54.4 - 54.4Restaurant 100% 9 100% 8.3 - 8.3

Office 100% 75 100% 78.7 - 78.7

9 Treescape Residential 100% 30 100% 29.2 7.7 21.5

10 Millage Residential 48% 70 100% 23.5 - 23.5Shop 48% 86 100% 28.7 - 28.7

11 Natura@Hillview Residential 49% 193 100% 72.2 7.7 64.5

12 Eon Shenton Office 20% 98 90% 52.5 1.4 51.1Residential 20% 132 92% 36.9 1.0 35.9

Shop 20% 23 100% 4.8 0.1 4.7

13 The MKZ Residential 100% 42 100% 51.8 3.7 48.1

14 Jade Residences (2) Residential 100% 171 44% 87.4 - 87.4Shop 100% 2 - - - -

Total 1,875 1,142.0 223.6 918.4

Landbanks

Project name / Location / DescriptionApproximate

Land AreaApproximate

Gross Floor AreaGroup’s

stake

ApproximateAttributable

Gross Floor Area

ApproximateAttributable Land

Cost

(sqf) (sqf) % (sqf) S$’m

1 Whitehaven 64,667 90,534 100% 90,534 78.5334 Pasir Panjang Road, Singapore

2 LIV on Sophia 17,545 36,845 90% 33,161 38.97

14 Adis Road, Singapore

3 211 – 223A Pasir Panjang Road, Singapore(1)

30,745 43,043 45% 19,369 14.85(currently known as Harbour View Gardens)

4 7/9/11/13/15 Wilkie Terrace, Singapore 22,533 47,319 90% 42,587 51.75(currently known as Wilkie Terrace)

135,490 217,741 185,651 184.07

(1) The acquisition is subject to and conditional upon the approval of the Court.




Business ReviewHotel Ownership

AOR , ARR & RevPar in 1Q2013


RevPar decreased by 17% to S$155.1 in 1Q2013 as compared toS$187.0 in 1Q2012 mainly due to the closure of hotel rooms forrenovation

* Decrease mainly due to closure of hotel rooms for renovation


92.5%

88.0%86.2%

94.2% 94.6%

89.9%92.8%

79.2%

$154.4

$200.3

$147.0

$166.4

$188.3$199.9 $201.5

$195.9

$142.8

$176.3

$126.7

$156.7

$178.1 $179.7$187.0

$155.1

$50.0

$80.0

$110.0

$140.0

$170.0

$200.0

$230.0

70.0%

73.0%

76.0%

79.0%

82.0%

85.0%

88.0%

91.0%

94.0%

FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 1Q2012 1Q2013

AOR ARR RevPar

17%

14% *


Hotel Revenue (S$’m)


Hotel revenue decreased by 16% from S$13.1 m in 1Q2012 toS$10.9 m in 1Q2013

8.511.7 10.0 10.3 11.7 13.1 10.9

9.1

12.6

8.711.0

12.012.4

9.8

12.5

9.0

11.812.5

13.19.9

11.7

9.9

11.4

12.311.6

-

10.0

20.0

30.0

40.0

50.0

60.0

FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013

Q4

Q3

Q2

Q1

$37.3

$48.5

$37.6

$44.5$48.5

$50.2

16%

3.6 5.3 3.4 3.9 4.8 5.4 3.7

3.95.8

3.0 4.65.0 4.8

4.3

5.4

3.2

4.75.4 5.2

5.0

5.1

3.7

4.5

5.2 4.2

$0.0

$5.0

$10.0

$15.0

$20.0

$25.0

FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013

Q4Q3Q2Q1


Hotel Net Operating Profits (“NOP”) (S$m)


Hotel NOP decreased to S$3.7 m in 1Q2013

Hotel Net Operating Profits is defined as the earnings before interest, taxes, depreciation and amortisation.

$16.8

$21.6

$13.3

$17.7

$20.4$19.6


Business ReviewProperty Investment



Business ReviewProperty Investment

Revenue (S$’m)

Increased by 2% in 1Q2013 due tohigher rental yield from shop units inRoxy Square

$0.6

$1.8

$1.0

$1.3

$1.5

$1.6

$1.7

$0.41 $0.42$0.0

$0.5

$1.0

$1.5

$2.0

$2.5

$3.0

$3.5

FY2009 FY2010 FY2011 FY2012 1Q2012 1Q2013

Kovan Centre Roxy Square

$1.9

$3.3

$2.6

2%


3 May 2013

Results Announcement1st Quarter Ended 31 March 2013

GroupBorrowings

Group BorrowingsDebt Profile 31 Mar 13 31 Dec 12

Total borrowings S$704.6 m S$611.4 m

Fixed rate loans S$183.6 m S$183.8 m

Fixed rate loans as % of total loans (1) 26% 30%

Interest cover ratio (times) 12.6 16.2

Weighted average term for fixed rates loans 10 months 13 months

Weighted average interest rate (fixed rates loans) 2.45% 2.45%

Weighted average interest rate (floating rates loans) 1.94% 1.92%

(1) Includes S$27.7 m loans under interest rate swap contracts to swap floating interest rates for fixed interest rates


Development loans - soldprojects, $336.2, 48%

Development loans -unsold projects, $226.2,

32%

Revolving loans, $62.5, 9%

Repayable in Mar 2014$2.4

Repayable in Apr 2014 toMar 2018, $14.1, 2%

Repayable after Apr 2018,$63.1, 9%

Term loans(Hotel & Shops)

$79.7, 11%

$562.4, 80%

Group BorrowingsDebt Profile as at 31 March 2013 (S$’m)

Total outstanding debts of S$704.6 m as at 31 March 2013




Outlook

Outlook

1. General

• Based on advance estimates by the Ministry of Trade and Industry (“MTI”), the Singapore economy contracted by 0.6% on a year-on-year basis in the first quarter of 2013, compared to the 1.5% growth in the preceding quarter.

• MTI maintained their forecast of Singapore economy growing between 1.0% and 3.0% in 2013.

2. Property Development

• Latest real estate statistics released by the Urban Redevelopment Authority (“URA”) showed that the prices of private residentialproperties increased by 0.6% in 1st Quarter 2013, reflecting a significant moderation in the 1.8% price growth recorded in 4th Quarter2012, confirming a trend of stabilising prices.

• Demand remains resilient, a signal of the stability of the Singapore residential property market.

3. Hotel Ownership

• Singapore Tourism Board (“STB”) has forecasted tourism receipts of between $23.5 to $24.5 billion and visitor arrivals of between14.8 m and 15.5 m in 2013, higher than the tourism receipts of $23.0 m and visitor arrivals of 14.4 m in 2012.

• We are optimistic that the demand for our hotel rooms should continue to be strong going into 2013, in line with the expected growthin tourism.

4. Progress billings of S$918.4 m, the profits of which will be recognised from 2Q2013 to FY2017

5. Strong financial flexibility with cash and cash equivalents of S$255.4 m and a S$200 m Multicurrency Medium Term NoteProgramme established in March 2013

6. Barring any unforeseen circumstances, the directors expect the Group to be profitable in 2013.




Thank You

roxy-pacific holdings limited

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