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1
Investor Meetings December 2005
2
Highlights
n Introduction
n Financial Highlights
n Operations Review
n Market Outlook
n Going Forward
3
Introduction
4
Introduction
n Established developer of quality housing and investmentgrade offices
n Diversified in Asia with focus in Singapore, China, Thailand, Vietnam, India and Indonesia
n Current focus on property development in growth cities in Asia and property fund management
5
n Entering new countries, cities and segments
Ø Secured two residential sites in Bangalore, India
Ø Ventured into Tianjin, China with villa development
n Developing residential townships in the region
Ø Over 20,000 units in the pipeline, located in :
à Chengdu, China (Total : 7,000 units)
à Ho Chi Minh City, Vietnam (Total : 3,000 units)
à Jakarta, Indonesia (Total : 7,000 units)
à Wuxi, China (Total : 5,000 units)
Ø Phase 1 (970 units) of The Botanica in Chengdu sold out in eight months
Expansion Drive
6
Financial Highlights
7
Financial Performance
S$m YTD3Q05 FY04 FY03 FY02
Turnover 401.6 476.2 678.8 299.0
EBITDA 117.8 124.6 141.6 134.6
PATMI after EI 100.2 132.7 100.6 26.4
% of overseas PATMI 56.8 43.3 31.6 2.8
Exceeded expectation of 50% earnings from overseas
8
Key Ratios
YTD3Q05 FY04 FY03 FY02
EPS (¢) 14.1 18.7 14.2 3.7
NTA/Share ($) 2.34 2.26 2.09 2.09
Debt/Equity Ratio 1.00 0.96 0.95 1.09
Annualised ROE (%) 8.2 8.6 8.5 6.4
9
Operations Review
10
Operations Review Singapore Residential n Sold more than 500 units YTD
Ø One Cluny Hill bungalow plot Ø 177 (89%) of 200 launched units at Park Infinia at Wee Nam
(Total : 486 units) Ø 662 (83%) of 801 launched units at Caribbean at Keppel Bay
(Total : 969 units; 168 units kept for corporate residences) Ø Urbana and Belvedere achieved good sales of launched
units : 91 units (72%) and 112 units (93%) respectively
Office n More than 60% precommitted for One Raffles Quay with
bluechip tenants including ABN AMRO, Deutsche Bank and UBS
11
Singapore
Office
n Developing Business & Financial Centre (BFC) site at New Downtown with Cheung Kong and Hongkong Land
Ø Total GFA : 438,000 sm (4.7m sf)
Ø Phase 1 : GFA of 244,000 sm (2.6m sf)
à 74% for office, the rest mainly for residential and some retail
Ø Purchased option of 8 years for remainder
Operations Review
Bayfront MRT Station
Landmark MRT Station
Integrated Resort & Casino
One Marina Boulevard
One Raffles Quay
The Sail @ Marina Bay
12
Singapore Integrated Resort n Jointly participating with Harrah’s in bid for both Integrated
Resort (IR) sites at Marina Bay and Sentosa Ø Forged alliances with some of the finest industry players :
à SMG (Marketer and operator of MICE venue) à Suntec Singapore (Worldclass convention venue) à CEMS (Conventions and exhibitions organiser) à AEG Live (Live entertainment firm) à Centre Pompidou (Cultural institution)
Ø Marina Bay IR : Request for Proposal (RFP) released on 15 Nov 2005 and submission of bids by 29 Mar 2006
Ø Sentosa IR : RFP to be released in 1Q06 Ø Both IRs to be up and running by 2010
Operations Review
13
Singapore
n Setting up KREIT Asia
Ø Initial portfolio of 4 prime office buildings :
à Value of S$630.7m, total NLA of 73,322 sm, average occupancy of 89%
Ø Distribution in specie : One unit for every five KLL shares
Ø KLL will retain 40% stake
Ø Trading to commence in 1Q06
Operations Review
Prudential Tower Keppel Towers / GE Tower Bugis Junction Towers (10 floors)
14
Operations Review
Singapore
n Impact of KREIT Asia on KLL
Ø ROE improves from 10.7% to 11.5%*
Ø NTA per share decreases from S$2.22 to S$1.85*
Ø Net gearing increases from 96% to 100%*
* Based on FY04 results, after Bugis City Holdings transactions and distribution in specie
15
Overseas n Sold more than 2,500 units YTD
China Ø 8 Park Avenue (Shanghai) : 446 (98%) of 456 launched units sold
(Total : 946 units) Ø The Seasons (Beijing) : 1,036 (98%) of 1,056 launched units sold
(Total :1,859 units) Ø The Waterfront (Chengdu) : 812 (93%) of 876 launched units sold
(Total : 1,143 units) Ø The Botanica (Chengdu) : Phase 1 (970 units) sold out
(Total : 8,166 units; Phase 23 : 2,403 units)
India Ø Elita Promenade (Bangalore) : 276 (67%) of 410 launched units sold
(Total : 1,572 units)
n Takeover offer for remaining stake in Dragon Land to facilitate realisation of business potential
Operations Review
16
Fund Management
n Asia No. 1 Property Fund (US$243m equity)
Ø 85% of fund invested in Japan, South Korea, Hong Kong and Singapore
n Alpha Core Plus Real Estate Fund
Ø First closing raised US$165m, 44% of fund invested in Japan and Singapore
Ø Second closing in early 2006, likely to exceed original fund size of US$250m
n Total Assets Under Management (AUM) of about US$1.3 billion when two funds are fully invested
Operations Review
17
Market Outlook
18
Residential n Market on firm recovery
Ø 6,560 new units sold YTD3Q05, with a total of 8,0009,000 units expected for full year (Source : URA, CBRE)
Ø Price up 2.5% from end 2004 (Source : URA)
Ø Price up 3.7% from trough in 1Q04, while still 36% below 2Q96 peak (Source : URA)
n Residential market to improve further Ø Demand boosted by better economic prospects, improving
job market and more foreign buying
Ø Prices to edge up further with improved market sentiment
Ø En bloc sales value (S$1.9 bn) at fiveyear high
Market Outlook Singapore
19
Residential
Demand and prices on the rise
Market Outlook Singapore
Source : URA
0 500
1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500
1Q01
2Q01
3Q01
4Q01
1Q02
2Q02
3Q02
4Q02
1Q03
2Q03
3Q03
4Q03
1Q04
2Q04
3Q04
4Q04
1Q05
2Q05
3Q05 100
105
110
115
120
125
130 Total Primary Demand
Price Index
Units Index
20
Residential Ø About 25% (2,151) of 8,604 caveats were lodged by foreign
buyers for the first nine months of 2005
Ø Increase in buyers from India and China
Market Outlook Singapore
Source : REALIS, JLL
WHERE THE BUYERS COME FROM
3%
8%
9%
9%
18%
2%
3%
5%
6%
8%
16%
25%
30%
22%
24%
2%
5% 5%
Hong Kong
USA
Australia
India
UK
China
Others
Malaysia
Indonesia
Foreign buyers by nationality (2004) Foreign buyers by nationality (First 9 months of 2005)
21
Office
n Increasing rentals and occupancy
Ø Average Grade A office occupancy of 91.2% in 3Q05 (Source : CBRE)
Ø Average Grade A office rentals at S$5.25 psf, up 14% from $4.60 psf in end04 (Source : CBRE)
Ø Islandwide occupancy reached 86.6% at end 3Q05, highest since 2001 (Source : URA)
Ø Islandwide demand rose to 1.47m sf YTD3Q05, and expected full year demand to be 1.65m sf (Source : URA, CBRE)
Market Outlook Singapore
22
Office
Market Outlook Singapore
Source : URA, CBRE
78
80
82
84
86
88
90
92
1Q01
2Q01
3Q01
4Q01
1Q02
2Q02
3Q02
4Q02
1Q03
2Q03
3Q03
4Q03
1Q04
2Q04
3Q04
4Q04
1Q05
2Q05
3Q05 0.0
1.0 2.0
3.0
4.0
5.0 6.0
7.0
8.0 Islandwide Occupancy
Prime Rentals
% S$psf/mth
23
Office n Singapore occupancy cost ranked 63rd worldwide, attractive
compared to other Asian cities
Market Outlook Singapore
Ranking City US$/sf/annum Ranking City US$/sf/annum 1 London (West End), England 178.67 27 New York Midtown Manhattan 53.69 2 Tokyo (Inner Central), Japan 131.10 31 Taipei, Taiwan 48.16 3 Tokyo (Outer Central), Japan 123.39 35 New Delhi, India 43.06 4 London (City), England 119.11 37 Washington DC (CBD) 41.84 5 Paris, France 89.58 39 Ho Chi Minh City, Vietnam 41.69 7 Dublin, Ireland 81.18 41 Amsterdam, Netherlands 40.72 8 Hong Kong 75.85 43 Shanghai (Pudong), China 40.49 9 Edinburgh, Scotland 75.80 44 Sydney, Australia 40.45 15 Frankfurt, Germany 63.57 45 Boston (CBD) 39.65 19 Seoul, South Korea 61.74 47 Shanghai (Puxi), China 38.83 20 Milan, Italy 60.99 50 Ottawa, Canada 37.62 23 Mumbai (Bombay), India 56.43 63 Singapore 33.71(S$4.70psf/mth) Source: CBRE (Aug 2005) USD:SGD=1.67
Global 50 Index (by occupation cost in US$ psf per annum)
24
Office n Positive demand outlook, limited new supply and declining
existing supply due to conversion of use to support further rise in rentals and occupancy
Market Outlook Singapore
Source : URA, CBRE and KLL
Office Supply (2005 2010) Expected Completion
Proposed Office Projects NFA (sf)
2005 No new supply 2006 3 Church Street 372,865
Parakou Building 63,723 One Raffles Quay 1,310,000 VisionCrest 144,295 Sinsov Building (A&A) 29,126 SIF Redevelopment 84,390 Sub total 2,004,399
2007 No new supply 2008 Central 411,167
Selegie Rd (Hotel/Office/Shopping Ctr) 182,988 Sub total 594,155
2009 No new supply Total (20052009) 2,598,554 2010 BFC (Phase 1) 1,646,876
25
n Growing demand for quality homes and wellplanned residential townships especially in China, India, Vietnam, Indonesia and Thailand
n Housing demand underpinned by economic growth, urbanisation, favourable demographics trends, rising home ownership aspiration and positive government policies
Market Outlook Asia
26
n Market cooled down in Shanghai after antispeculation measures were introduced in April 2005
n Prices of condominiums in Shanghai have shown signs of recovery
n Other major cities are less affected by these measures
Market Outlook China
27
Going Forward
28
Singapore
n Progressively launch and develop residential landbank of about 2,600 units according to market demand
n Seek development opportunities with good potential returns eg. IRs
n Develop BFC to capitalise on the improving office and residential markets
n Unlock shareholder value eg. KREIT Asia
n Improve lease commitments for One Raffles Quay and other office buildings
Going Forward
29
Units to
Project Location Launch
Caribbean at Keppel Bay * Keppel Bay Drive 139 #
Urbana * River Valley Rd 35
The Belvedere * Meyer Rd 55
Park Infinia at Wee Nam * Wee Nam Rd 23
* Balance units ^ New launches # Excluding 168 units set aside for corporate leasing Info updated as of 15 Dec
Singapore Residential Launches 2005
30
Overseas
n Keep up expansion drive in promising countries, cities and market segments in Asia
n Launch residential and township projects from pipeline of about 28,000 units in China, Thailand, Vietnam, India and Indonesia
n Continue to pursue residential and township developments
Going Forward
31
Overseas Pipeline
About 28,000 units to be launched
Beijing Beijing (800) (800)
Shanghai Shanghai (1,400) (1,400)
Ho Chi Minh City Ho Chi Minh City (3,100) (3,100)
Tianjin Tianjin (160) (160)
Chengdu Chengdu (7,500) (7,500)
Bangkok Bangkok (600) (600)
Jakarta Jakarta (7,000) (7,000)
Bangalore Bangalore (2,350) (2,350)
Wuxi Wuxi (5,000) (5,000)
32
Overseas Residential Projects Units to Launch
Project 2005 2006 2007
China 8 Park Avenue, Shanghai * 10 490 Xujing Villas, Shanghai ^ 168 Park Avenue Central, Shanghai ^ 708 The Seasons, Beijing * 20 803 The Waterfront, Chengdu * 114 217 The Botanica (Phase 2), Chengdu ^ 1,476 The Botanica (Phase 3), Chengdu ^ 927 Tianjin Villas, Tianjin ^ 160 Wuxi Township, Wuxi (Phase 1) ^ 800 Great Town Harbour, Fuzhou (Ph1) * 301 * Balance units ^ New launches Info updated as of 15 Dec
33
Overseas Residential Projects Units to Launch
Project 2005 2006 2007 Vietnam
Villa Riviera, Ho Chi Minh City # * 11 76 Saigon Sports City (Phase 1), HCMC ^ 782
Thailand Villa Arcadia at Srinakarin, Bangkok * 3 317 Villa Arcadia at Watcharapol, Bangkok ^ 100 170
India Elita Promenade in JP Nagar , Bangalore * 324 800 172 Condominium in Kanakapura, Bangalore ^ 320 744
Indonesia Cakung Township (Phase 1), Jakarta ^ 300 856 # Total units revised to 101 * Balance units ^ New launches Info updated as of 15 Dec
34
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.
35
Extra Slides
36
Net Profit by Business Segment
YTD3Q05 FY04 FY03 FY02 Business Segment S$m S$m S$m S$m
Property
Trading 80.3 97.2 103.3 49.9
Investment 28.0 32.4 32.1 52.9
Others
Hotels / Resorts (8.8) (6.2) (14.3) (12.5)
Property Services / Others 0.7 9.3 5.3 4.0
PATMI after EI 100.2 132.7 100.6 26.4
37
Net Profit by Geographical Location
Geographical YTD3Q05 FY04 FY03 FY02 Location S$m % S$m % S$m % S$m %
Singapore 43.3 43.2 75.2 56.7 86.5 68.4 91.7 97.2
Other Countries 56.9 56.8 57.5 43.3 39.9 31.6 2.6 2.8
PATMI after EI 100.2 132.7 100.6 26.4
Exceeded expectation of 50% earnings from overseas
38
Recent Awards Recognition for Corporate Transparency
n Only property developer in Top 20 among 640 companies in Business Times Corporate Transparency Index in 2005
n Top five among Singapore listed companies in a corporate governance study by Standard & Poor’s and NUS in 2004
n First among real estate companies and sixth among Singapore companies in a survey by Institutional Shareholder Services and Business Week in 2004
n Securities Investors Association (Singapore) Investors' Choice Awards 2005 Ø Merit Award for Singapore Corporate Governance Award Ø Runnerup for Most Transparent Company under the properties
category
39
Recognition for Excellence in Product Quality
n 8 Park Avenue, Shanghai 2005 Shanghai Top 10 Internationalgrade Residential Property by People’s Daily
n The Waterfront, Chengdu Model Residential Development for International Community by Chengdu Real Estate Brand Promotion Centre in 2005
n The Botanica, Chengdu 2005 Project with Good Investment Value by Chengdu Real Estate Brand Promotion Centre
n Spring City Golf and Lake Resort, Kunming Best Golf Course in China in 2005 by US Golf Digest
n Saigon Centre, Ho Chi Minh City “Gold Medal Vietnam Quality Award 2005” by the Ministry of Science, Technology and Environment of Vietnam
n Sedona Suites, Hanoi Vietnam Quality Award 2005 by the Ministry of Science, Technology and Environment of Vietnam
Recent Awards
40
Market Outlook Singapore n Remaking Singapore into a worldclass city through large
scale projects eg. BFC & IRs n Developing vibrant New Downtown at Marina Bay
Source : Jones Lang LaSalle
41
Market Outlook Singapore n Rising rentals in both residential and office markets
Source : JLL
42
Singapore Residential Landbank
n About 1.6 mil sf of attributable GFA Site Location Tenure Attributable Attributable Total
Land Area GFA Units (sf) (sf)
The Tresor Duchess Road 999yr 80,504 112,689 62 Devonshire Road (60%)^* Devonshire Road Freehold 47,793 133,820 157 Avenue Park (52%)* Sixth Avenue Freehold 89,866 125,813 193 The Crest @ Cairnhill Cairnhill Road Freehold 11,183 31,310 15 Naga Court Bukit Timah Road Freehold 49,168 110,628 74 Keppel Bay Plots 1 (30%)* Keppel Bay Drive 99yr 269,938 624,521 1,100 Keppel Bay Plot 3 & 6 (30%)* Keppel Bay Drive 99yr 201,413 220,811 408 Keppel Bay Plot 4 (11.7%)* Keppel Bay Drive 99yr 36,207 40,300 234 BFC (Phase 1) Residential (33.3%)* Marina Blvd/Central Blvd 99yr n.a. 197,338 421 Total 786,072 1,597,230 2,664
* KLL’s stake ^ Based on amalgamated site
43
China Residential Landbank
n About 2.1 mil sm of total GFA Site KLL's Stake Total Land Area Total GFA Total
(%) (sm) (sm) Units 8 Park Avenue * 99% 33,432 133,393 946 Park Avenue Central 99% 28,488 99,708 708 Xujing Villas 99% 153,726 53,804 168 Tianjin Villas 100% 133,400 56,000 160 Wuxi Township 50% 352,534 671,053 # 5,000 The Botanica ^ 44% 419,775 1,049,438 # 8,166 Total 1,121,355 2,063,396 15,148
* Includes 5 blocks launched ^ Includes Ph 1 launched # Includes commercial space