KEPPEL LAND. Investor Meetings. October - November 2003

Transcription

1 KEPPEL LAND Investor Meetings October - November 2003

2 Presentation Highlights Introduction Financial Highlights Operations Review Market Outlook China Thailand Vietnam Going Forward 2

3 Corporate Profile Third largest listed property company in Singapore by total assets (about $4.6 billion as at 31 December 2002) Established developer of quality housing and investment-grade properties Recognition for good corporate governance and transparency Awarded Best Annual Report five consecutive years Runner-up for the SIAS Most Transparent Company Award under the Properties category for the fourth consecutive year Ranked 6th among 285 listed companies in BT Corporate Transparency Index ranking for FY2002 results. 3 Geographically diversified in Asia, currently focusing in China, Thailand and Vietnam

4 Strategic Focus Taking advantage of regional economic growth, focus on two core businesses : Property development for sale in Asia Grow overseas earnings to 50% by 2005 (At end-3q03, overseas contribution made up 32% of group earnings) Property fund management (First closing of $180m for Asia No. 1 Property Fund in May 2003) 4 Divest low-yielding assets and re-deploy resources into higher yielding core businesses and assets

5 Regional Country Focus Focus China, Thailand and Vietnam Selective land acquisition for immediate development for sale Active Monitor Hong Kong, India, Indonesia, Japan, S.Korea, Malaysia and Philippines Monitor markets for any future opportunities Monitor Australia and Myanmar 5 Keep watching brief of the markets

6 Financial Highlights

7 Financial Performance $m YTD Sept YTD Sept % Change Turnover EBITDA Operating Profit Pre-tax Profit Exceptional Item - 2.5* - PATMI *Sale of Bayswater Village

8 Key Ratios Key Ratios YTD Sept YTD Sept % Change EPS ( ) NTA/Share ($) (9.2) Debt/Equity Ratio (14.4) Annualised ROE (%)

9 Net Profit - by Business Segment Business Segment YTD Sept YTD Sept % $m $m Change Property Investment (43.3) Trading Others Hotels/Resorts (11.7) (8.5) nm Property Services / Etc (4.1) Exceptional Item - 2.5* - PATMI * Sale of Bayswater Village

10 Net Profit - by Geographical Location Geographical Segment YTD Sept 2003 YTD Sept 2002 % $m % $m % Change Singapore (6.2) Other Countries ,300.0 Exceptional Item * PATMI *Sale of Bayswater Village 10

11 Notes on Profit Recognition Singapore To date, two plots at Cluny Hill sold (Profit recognition for one plot amounting to $5.2 million in 3Q2003) Profit recognition of $7.7 million for Caribbean at Keppel Bay YTD, based on 34% sales and 58% completion (Profit recognition of $2.5 million in 3Q2003) Overseas 11 One Park Avenue 100% sold. Profit recognition of $26 million YTD, based on 90% sales and 47% completion (Profit recognition of $13.1 million in 3Q2003)

12 Operations Review

13 Operations Review Singapore Sold two good class bungalow plots at Cluny Hill in exclusive residential enclave near Botanic Gardens China Formed CityOne Township Development Pte Ltd, a JV with HDB Corporation, to develop residential townships in China starting with Chengdu and Shenyang Thailand Acquired a 12.5 ha site off Watcharapol Road for development of 278 units of landed detached houses 13

14 Market Outlook

15 Market Outlook Singapore Residential - Market gradually turning positive. Demand expected to improve with economic recovery and job security Office - Market bottoming out and demand expected to recover in tandem with economy Overseas Healthy demand for housing with rising affluence and government incentives, low interest rates and urbanisation trends e.g. China, Thailand and Vietnam 15 Potential new markets like India with rising economic prospects and a sizeable middle income group offer opportunities for residential development

16 China

17 Keppel Land s presence in China Beijing Chengdu Shanghai Kunming 17

18 Sustainable demand drivers GDP growth of about 8%, leading to affluence and increased disposable income Increased business activity expected with China s entry into WTO and the hosting of the 2008 Olympic Games and World Expo in 2010 Government housing reforms (e.g. tax incentives, subsidies and low mortgage rates) Merging of foreign and domestic sales markets in Shanghai and Beijing 18

19 Impact of PBOC Guidelines Eliminate property developers with poor standing Check problematic loans to small developers who have over-speculated in the property market Level the playing field among developers Banks may disburse buyers mortgage loan quantum to the developer upon structural completion, as opposed to the S&P stage previously Curb speculative activities in the housing market High-end segment may moderate 19

20 Impact of PBOC Guidelines Impact to Keppel Land Minimal impact of guideline on project financing on Keppel Land Currently, projects in China not financed by Chinese banks. If required, most likely able to secure loans from Chinese banks as we do not need more than 70% financing 20

21 Thailand

22 Sustainable demand drivers GDP growth of % backed by domestic consumption and exports Shortage of supply, especially in the landed housing market Government incentives ( tax breaks, rebates, and low mortgage rates) A relatively young growing population and household formation 22

23 Vietnam

24 Sustainable demand drivers GDP growth of 7-7.5% supported by exports and foreign investments Rising affluence among households as evidenced by 35% per annum growth in auto sales and surge in demand for quality housing Change in laws allowing Viet Kieus to purchase property (US$3 billion p.a. repatriated from overseas) 24

25 Going Forward

26 Going Forward Singapore Selectively launch residential projects Continue to divest investment properties that are low yielding for re-investment into higher yielding core businesses and assets Overseas Possible launches in Shanghai, Bangkok and Ho Chi Minh City Actively seek new opportunities in other promising cities in Asia (e.g. India) for residential development 26 Continuing to selectively expand our presence in existing markets (e.g. Indonesia and Malaysia)

27 Residential Launches Singapore Project Location Total No. % Launch of Units Sold Date Launched The Callista 22 Mar Thoma Road 87 59% On-going The Elysia 6 Mar Thoma Road 40 18% On-going The Linc Lincoln Road 51 43% On-going Freesia Woods Sunset Way % On-going Cluny Hill Bungalow Plots Cluny Hill 16 50% On-going Possible Launches in 4Q2003* The Tresor Duchess Park 62 4Q2003 Wee Nam Wee Nam Road 280 4Q2003 Caribbean at Keppel Bay^(30%) Keppel Bay Drive % 4Q As at 27 October 2003 * Depending on market conditions ^ Launches of balanced units

28 Residential Launches Overseas Project Total No. of Units Exp Launch Date China 8 Park Avenue, Shanghai 947 condo units 4Q2003 Wang Jing Project, Beijing 1,860 condo units 1Q2004 Wang Jiang Garden, Chengdu 1,200 condo units 2Q2004 Park Avenue Central, Shanghai 708 condo units 4Q2005 Chengdu Township (Phase 1) 2,500 apartments 2Q2005 Thailand Villa Arcadia Srinakarin 360 detached houses 4Q2003 Villa Arcadia Watcharapol 278 detached houses 3Q2004 Vietnam Villa Riviera, Ho Chi Minh City 113 villas 4Q2003 Saigon Sports City (Phase 1) 250 apartments 2Q2005 As at 27 October

29 Thank You 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.