OUE LIMITED. (Company Registration No E)

Transcription

1 (Company Registration No E) FIRST QUARTER FINANCIAL STATEMENTS AND DIVIDEND ANNOUNCEMENT FOR THE QUARTER ENDED 31 MARCH 2018 (UNAUDITED) Item No. TABLE OF CONTENTS Description Page No. 1 (a)(i) Statement of Comprehensive Income 2 1 (a)(ii) Explanatory Notes to Statement of Comprehensive Income (b)(i) Statements of Financial Position (b)(ii) Group s Borrowings and Debt Securities 7 1 (c) Consolidated Statements of Cash Flows (d)(i) Statement of Changes in Equity (d)(ii) Changes in the Company s Issued Share Capital 13 1 (d)(iii) Total Number of Issued Shares 13 1 (d)(iv) Changes in the Company s Treasury Shares 13 2 & 3 Audit Statement 13 4 & 5 Accounting Policies Earnings per Share 14 7 Net Asset Value per Share 15 8 Review of Performance Variance from Prospect Statement Outlook and Prospect & 12 Dividend Interested Person Transactions Confirmation pursuant to Rule 720(1) of the Listing Manual Negative confirmation pursuant to Rule 705(5) of the Listing Manual

2 1(a)(i) Statement of Comprehensive Income Notes The Group First First Quarter Quarter ended ended Change 31/03/18 31/03/17 $'000 $'000 % (Restated) 1 Revenue A 145, ,280 (25.8) Cost of sales (77,009) (134,610) (42.8) Gross profit 68,603 61, Marketing expenses B (4,587) (9,240) (50.4) Administrative expenses C (15,817) (24,371) (35.1) Other operating expenses (3,605) (3,042) 18.5 Share of results of equity-accounted investees, net of tax 10,010 9, ,604 34, Finance expenses D (35,586) (31,841) 11.8 Finance income E 3,905 1,660 >100.0 Other (losses)/gains - net F (8,129) 19,192 n.m. Profit before tax G 14,794 23,996 (38.3) Tax expense H (6,445) (7,118) (9.5) Profit after tax 8,349 16,878 (50.5) Other comprehensive income Items that are or may be reclassified subsequently to profit or loss: Currency translation differences relating to foreign operations (4,041) (19,166) (78.9) Share of currency translation differences of equity-accounted investees 6,558 (8,399) n.m. Share of currency translation differences of an equity-accounted investee reclassified to profit or loss on disposal (100.0) Share of other reserves of equity-accounted investees 1, >100.0 Net change in fair value of available-for-sale financial assets, net of tax - (212) (100.0) Cash flow hedges: - effective portion of changes in fair value of cash flow hedges 4,920 (3,360) n.m. - hedging reserve reclassified to profit or loss ,588 (29,518) n.m. Items that will not be reclassified subsequently to profit or loss: Share of other reserves of an equity-accounted investee (2,361) - n.m. Net change in fair value of investments at fair value through other comprehensive income, net of tax (242) - n.m. (2,603) - n.m. Other comprehensive income, net of tax 6,985 (29,518) n.m. Total comprehensive income for the period 15,334 (12,640) n.m. Profit attributable to: Owners of the Company 1,031 11,059 (90.7) Non-controlling interests 7,318 5, ,349 16,878 (50.5) Total comprehensive income attributable to: Owners of the Company (1,003) (12,941) (92.2) Non-controlling interests 16, > ,334 (12,640) n.m. n.m.: Not meaningful Note: 1. The results for the first quarter ended 31 March 2017 are restated following the adoption of the new financial reporting framework, Singapore Financial Reporting Standards (International) (SFRS(I)s). Refer to Item No. 4 and 5 for the details on the financial impact from the adoption of SFRS(I)s

3 1 (a)(ii) Explanatory Notes to Statement of Comprehensive Income A) Revenue First First Quarter Quarter ended ended 31/03/18 31/03/17 Change $'000 $'000 % Investment properties income 69,533 68, Hospitality income 58,955 51, Development property income - 72,644 (100.0) Healthcare income 9,843 - n.m. Others 7,281 3, , ,280 (25.8) B) Marketing expenses Marketing expenses decreased by $4.7 million to $4.6 million for 1Q The decrease was mainly attributed to lower marketing expenses incurred on OUE Twin Peaks as the project was fully sold in October C) Administrative expenses Administrative expenses decreased by $8.6 million to $15.8 million for 1Q The decrease was mainly due to the absence of transaction costs previously incurred for the transfer of 22 OUE Twin Peaks units from development properties to investment properties in 1Q The decrease was also due to the absence of transaction costs previously incurred for the acquisition of equity interests in OUE Lippo Healthcare Limited ( OUE Lippo Healthcare ) in 1Q 2017, which became a subsidiary in March This was partially offset by the inclusion of administrative expenses of OUE Lippo Healthcare in the current quarter. D) Finance expenses First First Quarter Quarter ended ended 31/03/18 31/03/17 Change $'000 $'000 % Borrowing costs 30,862 25, Net foreign exchange loss 4,367 4, Unwinding of discount of non-current rental deposits 41 - n.m. Change in fair value of financial derivatives 128 2,052 (93.8) Hedging reserve reclassified from equity ,586 31, The change in fair value of financial derivatives relate to non-cash fair value movements of the interest rate swaps that were entered into to hedge the Group s exposure to floating interest rates on its borrowings. The hedging reserve reclassified from equity pertains to the cumulative net fair value movements of certain interest rate swaps and was reclassified to profit or loss due to the discontinuation of hedge accounting

4 1 (a)(ii) Explanatory Notes to Statement of Comprehensive Income E) Finance income First First Quarter Quarter ended ended 31/03/18 31/03/17 Change $'000 $'000 % Interest income 3,561 1,341 >100.0 Ineffective portion of changes in fair value of cash flow hedges (6.6) Others 46 - n.m. 3,905 1,660 >100.0 F) Other (losses)/gains net First First Quarter Quarter ended ended 31/03/18 31/03/17 Change $'000 $'000 % (Restated) 1 Reversal of impairment loss on a development property - 14,224 (100.0) Change in fair value of investment properties - 4,095 (100.0) Net change in fair value of investments designated at fair value through profit or loss (8,129) 1,655 n.m. Loss on disposal of interests in an equity-accounted investee - (782) (100.0) (8,129) 19,192 n.m. 1 Refer to Item No. 4 and 5. The reversal of impairment loss on a development property pertains to the write-back of impairment on OUE Twin Peaks units that were sold under deferred payment schemes in 1Q The change in fair value of investment properties recognised in 1Q 2017 relates to the fair value gain on the 22 OUE Twin Peaks units that were transferred from development properties to investment properties. Net change in fair value of investments designated at fair value through profit or loss relate mainly to marked-to-market fair value movements on the investment in a mutual fund. This is a non-cash item

5 1 (a)(ii) Explanatory Notes to Statement of Comprehensive Income G) Profit before tax First First Quarter Quarter ended ended 31/03/18 31/03/17 Change $'000 $'000 % Profit before tax is stated after charging: - Depreciation of property, plant and equipment 2,011 1, Amortisation of intangible assets 59 - n.m. - Amortisation of lease prepayments n.m. - Allowance for impairment on trade and other receivables 12 - n.m. - Loss on disposal of property, plant and equipment - 2 (100.0) H) Tax expense First First Quarter Quarter ended ended 31/03/18 31/03/17 Change $'000 $'000 % The charge for income tax expense includes the following: - (Over)/Under provision of current tax in respect of prior years (25) 222 n.m. n.m.: Not meaningful - 5 -

6 O UE L IM ITED FirstQ u arterend ed 31 M arc h (b)(i) S tatem ents of Financ ialp osition Notes The Grou p The C om pany 31/03/18 31/12/17 31/03/18 31/12/17 $'000 $'000 $'000 $'000 (Restated ) 1 A S S ETS C u rrentassets Cash and cash equivalents 370, ,249 83,735 42,614 Trade and other receivables 67,592 65,451 1,398,633 1,239,260 Inventories 2,105 2, Other investments 235, , Development properties 522, , Other assets 27,761 79,330 3,351 3,967 Loans to subsidiaries - - 1,633,743 1,860,509 Derivative assets A Assets held for sale B 349, ,575,792 1,382,859 3,119,689 3,146,572 Non-c u rrentassets Intangible assets and goodwill C 22,520 19, Investments in equity-accounted investees 965, , , ,745 Investments in subsidiaries , ,712 Loans to subsidiaries , ,567 Lease prepayments 29,759 29, Other investments 209, , , ,271 Other assets 7,420 5, Investment properties 6,404,909 6,390, Property, plant and equipment 31,161 31,494 10,059 10,567 Deferred tax assets 13,233 12, ,684,075 7,651,286 1,213,789 1,206,922 Totalassets 9, 259, , 034, 145 4, 333, , 353, 494 L IA B IL ITIES C u rrentliabilities Trade and other payables 303, ,043 99, ,891 Borrowings 1,516,349 1,081, ,857 35,000 Provision 46,000 46,000 3,520 4,115 Loans from subsidiaries , ,278 Current tax liabilities 38,337 34,913 6,565 6,575 Deferred income D 12,579 12, Derivative liabilities A 1, Liabilities directly associated with the assets held for sale B ,918,292 1,430, , ,859 Non-c u rrentliabilities Borrowings 2,062,885 2,399, , ,300 Deferred income D 83,111 83, Deferred tax liabilities 185, , Other payables 52,147 52, Provision Derivative liabilities A 5,049 10, ,388,747 2,727, , ,767 Totalliabilities 4, , , , 18 4, 626 NetA ssets 4, 952, , 8 7 5, , 155, , EQ UITY Share capital 693, , , ,315 Other reserves (79,173) (77,139) (29,073) (29,073) Accumulated profits 3,447,205 3,408,742 2,491,656 2,504,626 Equ ity attribu table to owners ofthe C om pany 4,061,347 4,024,918 3,155,898 3,168,868 Non-controlling interests E 891, , Totalequ ity 4, 952, , 8 7 5, , 155, , Note: 1. The statement of financial position as at 31 December 2017 is restated following the adoption of the new financial reporting framework, Singapore Financial Reporting Standards (International) (SFRS(I)s). Refer to Item No. 4 and 5 for the details on the financial impact from the adoption of SFRS(I)s

7 Notes: A) Derivative assets and derivative liabilities relate to the fair value of the interest rate swaps entered into to hedge the Group s exposure to floating interest rates on its borrowings. B) On 30 March 2018, the Group announced that it had entered into a conditional share sale and purchase agreement for the sale and transfer of shares of a wholly-owned subsidiary group, PT Alpha Sentra Prima and its subsidiaries ( Alpha Group ). Consequently, the assets and liabilities directly related to Alpha Group have been reclassified to Assets held for sale and Liabilities directly associated with the assets held for sale respectively as at 31 March C) Intangible assets and goodwill includes $2.9 million provisional goodwill recognised by OUE Lippo Healthcare Limited ( OUE Lippo Healthcare ), a listed subsidiary of the Group, on its acquisition of equity interests in Brainy World Holdings Limited in January OUE Lippo Healthcare is currently performing a purchase price allocation ( PPA ) exercise on its investment in Brainy World Holdings Limited. Accordingly, the fair value of the assets acquired and the liabilities assumed at the acquisition date may be adjusted subsequently when the PPA exercise is completed by the end of the financial year. D) Deferred income relates to the non-refundable deposits received from the OUE Twin Peaks units sold under deferred payment schemes. Revenue from units sold under deferred payment schemes are deferred and will be recognised on completion of the sale of the unit. E) The increase in Non-controlling interests of $40.7 million was mainly due to the dilution of the Group s interests in OUE Lippo Healthcare subsequent to their allotment and issuance of shares to Browny Healthcare Pte Ltd, a wholly-owned subsidiary of ITOCHU Corporation, which is listed on the Tokyo Stock Exchange. 1(b)(ii) Aggregate amount of group s borrowings and debt securities As at 31/03/18 As at 31/12/17 Secured Unsecured Total Secured Unsecured Total $'000 $'000 $'000 $'000 $'000 $'000 Amount repayable in one year or less, or on demand 1,349, ,025 1,516, , ,992 1,081,828 Amount repayable after one year 1,019,283 1,043,602 2,062,885 1,356,102 1,043,005 2,399,107 2,368,607 1,210,627 3,579,234 2,125,938 1,354,997 3,480,935 Details of any collateral Secured borrowings are collateralised by: - pledging of the borrowing companies' properties/assets and/or - first priority fixed charge over the shares of certain subsidiaries and/or - assignment of all rights and benefits to sale, lease and/or insurance proceeds with respect to the properties As at 31 March 2018, the Group has borrowings amounting to $1.5 billion that will be due in the next twelve months. $0.5 billion of these borrowings pertain to OUE C-REIT which will mature in 2H 2018, where negotiations to complete the refinancing are already in progress and $0.2 billion of the borrowings has been repaid subsequent to 31 March The balance $0.2 billion of borrowings will mature in 4Q 2018 where refinancing negotiation is in progress and approximately $0.6 million will mature in 1Q

8 1(c) Consolidated Statement of Cash Flows The Group First First Quarter Quarter ended ended 31/03/18 31/03/17 $'000 $'000 (Restated) 1 Cash flows from operating activities Profit after tax 8,349 16,878 Adjustments for: Depreciation of property, plant and equipment 2,011 1,129 Amortisation of intangible assets 59 - Amortisation of lease prepayments Reversal of impairment loss on a development property - (14,224) Change in fair value of investment properties - (4,095) Net change in fair value of investments designated at fair value through profit or loss 8,129 (1,655) Loss on disposal of interests in an equity-accounted investee Loss on disposal of property, plant and equipment, net of transaction costs - 2 Finance expenses 35,586 31,841 Finance income (3,905) (1,660) Share of results of equity-accounted investees, net of tax (10,010) (9,968) Tax expense 6,445 7,118 46,839 26,148 Changes in: - trade and other receivables and other assets (9,912) (14,414) - inventories (96) 82 - development properties (1,685) 65,669 - trade and other payables and provision 37,388 (10,846) - deferred income - 12,971 Cash generated from operations 72,534 79,610 Tax paid (2,089) (1,952) Net cash from operating activities 70,445 77,658 Cash flows from investing activities Acquisition of subsidiaries, net of cash acquired (2,097) (83,712) Acquisition of other investments (67,315) (356) Additions to property, plant and equipment (1,883) (123) Additions to investment properties (12,731) (40,115) Deposits placed for investments (159,408) - Dividends from: - equity-accounted investees, net of tax 7,439 7,967 - other investments, net of tax 46 - Interest received Proceeds from disposal of interests in an equity-accounted investee - 28,639 Net cash used in investing activities (235,410) (87,293) - 8 -

9 The Group First First Quarter Quarter ended ended 31/03/18 31/03/17 $'000 $'000 (Restated) 1 Cash flows from financing activities Acquisition of non-controlling interests - (20,958) Dividends paid (15,683) (11,289) Finance expense paid (21,068) (35,499) Proceeds from borrowings 379,637 1,221,515 Repayment of borrowings (283,064) (1,254,867) Proceeds from issuance of share capital by a subsidiary 78,750 - Proceeds from issuance of units by a subsidiary - 150,000 Share capital issue costs of a subsidiary (1,300) - Units issue costs of a subsidiary - (780) Changes in pledged deposits 155 2,977 Net cash from financing activities 137,427 51,099 Net (decrease)/increase in cash and cash equivalents (27,538) 41,464 Cash and cash equivalents at the beginning of the financial period 527, ,415 Cash and cash equivalents reclassified to assets held for sale (136,813) - Cash and cash equivalents at the end of the financial period 2 362, ,879 1 Refer to Item No. 4 and 5. 2 Cash and cash equivalents as at 31 March 2018 excludes the Group's pledged deposits of $7,767,000 (31/12/17: $7,922,000)

10 1(d)(i) Statement of Changes in Equity Attributable to Owners of the Company Share Other Accumulated Non-controlling Capital Reserves Profits Total Interests Total Equity THE GROUP $'000 $'000 $'000 $'000 $'000 $'000 At 31 December 2017, as previously reported 693,315 (119,582) 3,451,185 4,024, ,809 4,875,727 Effect of adopting SFRS(I) ,443 (42,443) At 1 January 2018, as restated 693,315 (77,139) 3,408,742 4,024, ,809 4,875,727 Total comprehensive income for the period Profit for the period - - 1,031 1,031 7,318 8,349 Other comprehensive income Currency translation differences relating to foreign operations - (10,778) - (10,778) 6,737 (4,041) Share of currency translation differences of equity-accounted investees - 6,558-6,558-6,558 Share of other reserves of equity-accounted investees - (398) - (398) - (398) Net change in fair value of investments at fair value through other comprehensive income, net of tax - (242) - (242) - (242) Cash flow hedges: - effective portion of changes in fair value of cash flow hedges - 2,728-2,728 2,192 4,920 - hedging reserve reclassified to profit or loss Total other comprehensive income, net of tax - (2,034) - (2,034) 9,019 6,985 Total comprehensive income for the period - (2,034) 1,031 (1,003) 16,337 15,334 Transactions with owners, recognised directly in equity Contributions by and distributions to owners Dividends paid (15,683) (15,683) Total contributions by and distributions to owners (15,683) (15,683) Changes in ownership interests in subsidiaries Proceeds from issuance of ordinary shares by a subsidiary, net of issuance costs ,450 77,450 Changes in ownership interests in subsidiaries without a change in control ,432 37,432 (37,432) - Total changes in ownership interests in subsidiaries ,432 37,432 40,018 77,450 Total transactions with owners ,432 37,432 24,335 61,767 At 31 March ,315 (79,173) 3,447,205 4,061, ,481 4,952,

11 Share Other Accumulated Non-controlling Capital Reserves Profits Total Interests Total Equity THE GROUP $'000 $'000 $'000 $'000 $'000 $'000 At 1 January 2017, as previously reported 693,315 (100,441) 3,416,457 4,009, ,480 4,643,811 Effect of adopting SFRS(I) ,137 (38,137) At 1 January 2017, as restated 693,315 (62,304) 3,378,320 4,009, ,480 4,643,811 Total comprehensive income for the period Profit for the period, restated ,059 11,059 5,819 16,878 Other comprehensive income Currency translation differences relating to foreign operations - (15,154) - (15,154) (4,012) (19,166) Share of currency translation differences of equity-accounted investees - (8,399) - (8,399) - (8,399) Share of currency translation differences of equity-accounted investee reclassified to profit or loss on disposal, restated Share of other reserves of equity-accounted investees Net change in fair value of available-for-sale financial assets, net of tax - (212) - (212) - (212) Cash flow hedges: - effective portion of changes in fair value of cash flow hedges - (1,766) - (1,766) (1,594) (3,360) - hedging reserve reclassified to profit or loss Total other comprehensive income, net of tax - (24,000) - (24,000) (5,518) (29,518) Total comprehensive income for the year - (24,000) 11,059 (12,941) 301 (12,640) Transactions with owners, recognised directly in equity Contributions by and distributions to owners Dividends paid (11,289) (11,289) Unit issue costs of a subsidiary (906) (906) Total contributions by and distributions to owners (12,195) (12,195) Changes in ownership interests in subsidiaries Proceeds from issuance of units by a subsidiary , ,000 Acquisition of subsidiary with non-controlling interests ,249 58,249 Changes in ownership interests in a subsidiary without a change in control - - (30,345) (30,345) 7,338 (23,007) Total changes in ownership interests in subsidiaries - - (30,345) (30,345) 215, ,242 Total transactions with owners - - (30,345) (30,345) 203, ,047 At 31 March 2017, as restated 693,315 (86,304) 3,359,034 3,966, ,173 4,804,218 1 Refer to Item No. 4 and 5. Attributable to Owners of the Company

12 Other Accumulated Share Capital Reserves Profits Total Equity THE COMPANY $'000 $'000 $'000 $'000 At 1 January ,315 (29,073) 2,504,626 3,168,868 Total comprehensive income for the period Loss for the period - - (12,970) (12,970) Total comprehensive income for the period - - (12,970) (12,970) At 31 March ,315 (29,073) 2,491,656 3,155,898 At 1 January ,315 (55,574) 2,524,359 3,162,100 Total comprehensive income for the period Loss for the period - - (17,463) (17,463) Total comprehensive income for the period - - (17,463) (17,463) At 31 March ,315 (55,574) 2,506,896 3,144,

13 1(d)(ii) Details of any changes in the Company's share capital arising from rights issue, bonus issue, share buy-backs, exercise of share options or warrants, conversion of other issues of equity securities, issue of shares for cash or as consideration for acquisition or for any other purpose since the end of the previous period reported on. State also the number of shares that may be issued on conversion of all the outstanding convertibles as at the end of the current financial period reported on and as at the end of the corresponding period of the immediately preceding financial year. There is no change in the Company s share capital in As at 31 March 2018, the Company held 79,786,000 (31/12/17: 79,786,000) treasury shares. 1(d)(iii) To show the total number of issued shares excluding treasury shares as at the end of the current financial period and as at the end of the immediately preceding year. As at 31 March 2018, the Company s total number of issued shares excluding treasury shares is 901,815,860 (31/12/17: 901,815,860). 1(d)(iv) A statement showing all sales, transfers, disposal, cancellation and/or use of treasury shares as at the end of the current financial period reported on. Not applicable. 2 Whether the figures have been audited, or reviewed and in accordance with which auditing standard or practice. These figures have not been audited or reviewed. 3 Where the figures have been audited or reviewed, the auditors' report (including any qualifications or emphasis of matter). Not applicable. 4 Whether the same accounting policies and methods of computation as in the issuer's most recently audited annual financial statements have been applied. Except as disclosed in Item No. 5 below, the Group has applied the same accounting policies and method of computation in the financial statements for the current financial period as those of the audited financial statements for the year ended 31 December If there are any changes in the accounting policies and methods of computation, including any required by an accounting standard, what has changed, as well as the reasons for, and the effect of, the change. The Group has adopted a new financial reporting framework, Singapore Financial Reporting Standards (International) (SFRS(I)s), on 1 January 2018 and has prepared its first set of financial information under SFRS(I)s for the quarter ended 31 March

14 In adopting SFRS(I)s, the Group is required to apply all of the specific transition requirements in SFRS(I) 1 First-time Adoption of Singapore Financial Reporting Standards (International). The Group s opening statements of financial position under SFRS(I)s has been prepared as at 1 January 2017, which is the Group s date of transition to SFRS(I)s. Application of SFRS(I) 1 The Group has elected for the optional exemption to reset its cumulative currency translation reserve for all foreign operations to nil at the date of transition at 1 January After the date of transition, any gain or loss on disposal of any foreign operations will exclude translation differences that arose before the date of transition. The effects of the adoption of SFRS(I) 1 are as follows: The Group 31/12/ /01/2017 $'000 $'000 Statement of financial position Increase in other reserves 42,443 38,137 Decrease in accumulated profits (42,443) (38,137) Statement of comprehensive income Decrease in net profit attributable to owners of the Company (4,306) - In addition, during the current financial year, the Group and the Company has adopted the following new SFRS(I)s, amendments and interpretations of SFRS(I)s which took effect from the financial year beginning 1 January 2018: SFRS(I) 9 Financial Instruments SFRS(I) 15 Revenue from Contracts with Customers and Amendments to SFRS(I) 15 Amendments to SFRS(I) 1-40 Transfer of Investment Property Amendments to SFRS(I) 1 Deletion of Short-term Exemptions for First-time Adopters Amendments to SFRS(I) 1-28 Long-term Interests in Associates and Joint Ventures SFRS(I) INT 22 Foreign Currency Transactions and Advance Consideration The adoption of theses SFRS(I)s, amendments and interpretations of SFRS(I)s did not have any significant impact on the financial statements of the Group. 6 Earnings per ordinary share of the group for the current financial period reported on and the corresponding period of the immediately preceding financial year, after deducting any provision for preference dividends. The Group 31/03/18 31/03/17 (Restated) Weighted average number of ordinary shares in issue 901,815, ,815,860 Basic and diluted earnings per share (cents per share) (a) (a) Diluted earnings per share is the same as basic earnings per share as there are no dilutive potential ordinary shares

15 7 Net asset value (for the issuer and group) per ordinary share based on issue share capital of the issuer at the end of the:- (a) current financial period reported on; and (b) immediately preceding financial year. The Group The Company 31/03/18 31/12/17 31/03/18 31/12/17 Number of issued shares (excluding treasury shares) 901,815, ,815, ,815, ,815,860 Net asset value per ordinary share ($) A review of the performance of the group, to the extent necessary for a reasonable understanding of the group's business. It must include a discussion of the following: (a) (b) any significant factors that affected the turnover, costs, and earnings of the group for the current financial period reported on, including (where applicable) seasonal or cyclical factors; and any material factors that affected the cash flow, working capital, assets or liabilities of the group during the current financial period reported on. % 1Q Q 2017 Change FINANCIAL HIGHLIGHTS $'000 $'000 (Restated) 1 Revenue 145, ,280 (25.8) Earnings before interest and tax (EBIT) 54,604 34, Profit attributable to Owners of the Company 1,031 11,059 (90.7) 1 Refer to Item No. 4 and 5. Revenue The Group recorded revenue of $145.6 million in 1Q 2018 (1Q 2017: $196.3 million). The decrease is mainly due to the absence of contribution from the development property division as OUE Twin Peaks were fully sold in October Excluding the development property division, revenue increased by $22.0 million in 1Q 2018 as higher contribution were recorded by all the business divisions. Investment Properties Division Revenue from investment properties division increased $1.5 million to $69.5 million in 1Q 2018 (1Q 2017: $68.0 million). The increase was mainly contributed by rental income from Downtown Gallery which opened in May Hospitality Division Revenue from the hospitality division increased $7.0 million to $59.0 million in 1Q 2018 (1Q 2017: $51.9 million). The increase was contributed by better operating performance from both Mandarin Orchard Singapore and Crowne Plaza Changi Airport, as well as contribution from Oakwood Premier OUE Singapore, the serviced apartments at OUE Downtown, which opened in June Development Property Division There was no contribution from the development property division in the current quarter as OUE Twin Peaks were fully sold in October The revenue relating to the units sold under deferred payment schemes are deferred until completion of the sale of the unit although non-refundable deposits were collected

16 Healthcare Division Revenue from the healthcare division pertains to revenue contribution from OUE Lippo Healthcare, which became a subsidiary of the Group on 2 March Revenue was higher as the Group recorded full quarter of the contribution from OUE Lippo Healthcare in OUE Lippo Healthcare derives its revenue from rental income from its nursing facilities in Japan, and from the operation of the Wuxi New District Phoenix Hospital in Wuxi, Jiangsu, China. Others Other revenue comprises mainly the contribution from OUE Skyspace LA, the observation deck at US Bank Tower as well as food and beverages operations of the Group. EBIT EBIT increased $19.6 million to $54.6 million in 1Q 2018 (1Q 2017: $35.0 million). The increase was mainly due to higher contribution from Downtown Gallery and Oakwood Premier OUE Singapore, which opened in May 2017 and June 2017 respectively. The increase is also due to lower administrative expenses incurred in the current quarter. Profit attributable to owners of the Company Profit attributable to shareholders decreased $10.0 million to $1.0 million in 1Q 2018 (1Q 2017: $11.1 million). The decrease was mainly due to non-cash marked-to-market fair value loss on the investment in a mutual fund in the current quarter and was partially mitigated by higher EBIT as explained above. 9 Where a forecast, or a prospect statement, has been previously disclosed to shareholders, any variance between it and the actual results. No forecast or prospect statement has been previously disclosed. 10 A commentary at the date of the announcement of the significant trends and competitive conditions of the industry in which the group operates and any known factors or events that may affect the group in the next reporting period and the next 12 months. Based on advanced estimates, the Singapore economy grew by 4.3% year-on-year in the first quarter of 2018, higher than the 3.6% growth in the fourth quarter of The Ministry of Trade and Industry expects GDP growth in 2018 to moderate from 2017 s growth rate but remain firm, with the GDP growth rate to come in slightly above the middle of the forecast range of 1.5% to 3.5% 2. The return of large biennial events, coupled with Singapore being the ASEAN chairman for the 32 nd ASEAN Summit, is expected to drive demand for hotel accommodation in Although new room supply is expected to slow down in 2018, the hospitality market environment remains competitive as the market continues to absorb additional room supply that came on stream in the second half of Grade A Core CBD rents rose 3.2% quarter-on-quarter in 1Q 2018 to S$9.70 per square foot per month, marking the third consecutive quarter of growth. Vacancy rates had also decreased 41 basis points 3 quarter-on-quarter. Depending on the pace of recovery in spot rents in the Singapore CBD, negative rental reversions may potentially continue into 2018, albeit at a slower pace than that experienced in

17 Overall vacancy levels for the Greater Los Angeles office increased slightly by 80 basis points quarteron-quarter to 15%, with asking rent down by 2.8% 4. In Shanghai, CBD Grade A office occupancy as at 1Q 2018 rose 0.4 percentage points quarter-on-quarter to 86.5% and rent increased to RMB10.26 psm per day 5. 1 Singapore Ministry of Trade and Industry Press Release, 13 April Singapore Ministry of Trade and Industry Press Release, 14 February CBRE MarketView Singapore, Q CBRE MarketView Greater Los Angeles Office, Q Colliers International Quarterly Q Shanghai Office 11 Dividend (a) Current Financial Period Reported On Any dividend declared/proposed for the current financial period reported on? No. (b) Corresponding Period of the Immediately Preceding Financial Year Any dividend declared for the corresponding period of the immediately preceding financial year? No. (c) Date payable Not applicable. (d) Books closure date Not applicable. 12 If no dividend has been declared/recommended, a statement to that effect. Not applicable. 13 If the Group has obtained a general mandate from shareholders for Interested Person Transactions ( IPT ), the aggregate value of such transactions as required under Rule 920(1)(a)(ii). If no IPT mandate has been obtained, a statement to that effect. The Group has not obtained a general mandate from shareholders for any Interested Person Transactions. 14 Confirmation Pursuant to Rule 720(1) of the Listing Manual The Company confirms that it has procured undertakings from all its directors and executive officers in the format set out in Appendix 7.7 under Rule 720(1) of the Listing Manual. BY ORDER OF THE BOARD NG NGAI COMPANY SECRETARY 11 May

18 15 Negative confirmation pursuant to Rule 705(5) of the Listing Manual Pursuant to SGX-ST Rule 705(5), the Directors confirm that, to the best of their knowledge, nothing has come to the attention of the Board of Directors which may render the unaudited consolidated financial results of the Company and the Group for the quarter ended 31 March 2018 to be false or misleading. On behalf of the Board of Directors Dr Stephen Riady Executive Chairman Mr Thio Gim Hock Chief Executive Officer