hiap hoe presentation v8 - final (aug 14 2013) hoe presentation v… · management reporting...
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Investor PresentationInvestor Presentation14 August 201314 August 2013
HIAP HOE LIMITEDHIAP HOE LIMITED
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Importance Notice
This presentation and the information contained herein does not constitute or form any part of any offer or invitation to sell or issue, or any solicitation of any offer to subscribe for or purchase any securities of Hiap Hoe Limited (the “Company”) or any of its subsidiaries, associated companies or joint ventures (collectively with the Company, the “Group”) in any jurisdiction or an inducement to enter into investment activity and nothing contained herein shall form the basis of or be relied upon in connection with any contract or commitment whatsoever. This presentation is being furnished to you solely for your information and may not be reproduced or redistributed to any other person or published, in whole or in part, for any purpose. No representation or warranty, express or implied, of any nature is given as to, and no reliance should be placed on, the fairness, correctness, accuracy or completeness of the information or opinions contained herein. This presentation is being communicated only to persons who have professional experience in matters relating to investments and to persons to whom it may be lawful to communicate it to (all such persons being referred to as "relevant persons"). This presentation is only directed at relevant persons. Solicitations resulting from this presentation will only be responded to if the person concerned is a relevant person. Other persons should not rely or act upon this presentation or any of its contents. The information and opinions in this presentation are provided as at the date of this presentation and are subject to change without notice. No assurance is made as to the accuracy of this presentation and it may be incomplete or condensed and it may not contain all material information concerning the Company or the Group. The information in this presentation is not financial product advice and does not take into consideration the investment objectives, financial situation or particular needs of any particular person. Any forward‐looking statement in this presentation is accurate only as of the date hereof, and there is no obligation to update, modify or amend this communication or to otherwise notify the recipient if information, opinions, assumptions, projections, forecasts or estimates set forth therein, changes or subsequently becomes inaccurate. None of the Company, or any member of the Group, or any of their respective affiliates, officers, employees, advisors or representatives shall have any liability whatsoever (in negligence or otherwise) for any loss howsoever arising from any use of or reliance on the information or opinions contained in this presentation. No offering of the Company’s securities will be registered under the U.S. Securities Act of 1933, as amended, or with any securities regulatory authority of any state or other jurisdiction of the United States. Subject to certain exceptions, the Company’s securities may not be offered, sold or delivered within the United States or to, or for the account or benefit of, any U.S. person (as defined in Regulation S under the U.S. Securities Act). Neither this presentation nor any copy of such presentation may be taken or transmitted into the United States or distributed, directly or indirectly, in the United States. The information presented here is not an offer for sale within the United States of any securities of the Company. The distribution of this presentation in certain jurisdictions may be restricted by law and persons into whose possession this presentation comes should inform themselves about, and observe, any such restrictions. By attending this presentation or by accepting this document, you will be taken to have represented, warranted and undertaken that: (i) you are a relevant person (as defined above); (ii) you are not a person located in the United States or any agent, fiduciary or other intermediary acting on a non‐discretionary basis for a principal giving instructions from within the United States or any U.S. person; (iii) you are bound by the foregoing limitations; and (iv) that any investment in any securities of the Company will be made solely on the basis of the disclosure document prepared by the Company and not on the basis of this presentation. Any failure to comply with these restrictions may constitute a limitation of applicable securities law.
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CompanyCompany OverviewOverview
Business UpdateBusiness Update
Financial HighlightsFinancial Highlights
Moving ForwardMoving Forward
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Overview of Hiap Hoe LimitedOur four core businesses
A premium integrated property developerA premium integrated property developer
HospitalityHospitality
ConstructionConstruction
InvestmentsInvestments
• Focused on residential properties in prime and strategic location• Over 30 years of track record in developing signature homes• Established reputation for high quality developments
•• Focused on Focused on residential properties in prime and strategic locationresidential properties in prime and strategic location•• Over 30 years of track record in developing signature homesOver 30 years of track record in developing signature homes•• Established reputation for high quality developmentsEstablished reputation for high quality developments
• Portfolio comprises two quality assets in Balestier, Singapore, managed by Wyndham Hotel Mgmt under Ramada and Days brands
• Focused on expanding portfolio to grow recurring income stream
•• Portfolio comprises two quality assets in Balestier, Singapore, Portfolio comprises two quality assets in Balestier, Singapore, managed by Wyndham Hotel Mgmt under Ramada and Days brandsmanaged by Wyndham Hotel Mgmt under Ramada and Days brands
•• Focused on expanding portfolio to grow recurring income streamFocused on expanding portfolio to grow recurring income stream
• Over 30 years of experience in construction • In‐house construction expertise and market knowledge allow for greater control over cost, quality and delivery
•• Over 30 years of experience in construction Over 30 years of experience in construction •• InIn‐‐house construction expertise and market knowledge allow for house construction expertise and market knowledge allow for greater control over cost, quality and deliverygreater control over cost, quality and delivery
• Growing investment activities to enlarge and diversify revenue streams• Focused on investments with strong fundamentals, acquired at
attractive valuations with good potential for capital appreciation
•• Growing investment activities to enlarge and diversify revenue sGrowing investment activities to enlarge and diversify revenue streamstreams•• Focused on investments with strong fundamentals, acquired at Focused on investments with strong fundamentals, acquired at
attractive valuations with good potential for capital appreciatiattractive valuations with good potential for capital appreciationon
Development Projects:‐Residential ‐Industrial‐Commercial
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Overview of Hiap Hoe LimitedKey statisticsSteady share price appreciation over past 5 yearsSteady share price appreciation over past 5 years
Liquidity Statistics
Listed on SGX‐ST
Six‐month average daily traded volume: 400,298 shares
Estimated Free Float: 28.7%
Substantial Shareholder: Hiap Hoe Holdings Pte Ltd , 69.85%
Market Cap as at 12 Aug 2013:SGD 347.6 million
Source: Bloomberg LLP
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Overview of Hiap Hoe LimitedLeveraging our key strengths
Competitive AdvantagesCompetitive Advantages
Integrated CapabilitiesIntegrated Capabilities
Solid Track RecordStrong Reputation
Solid Track RecordStrong Reputation
Discipline & Commitment
Discipline & Commitment
Strong FinancialsStrong Financials
• In‐house construction capability and expertise allow for greater control over cost and quality
• In‐house sales/leasing team
•• InIn‐‐house construction capability and expertise allow for greater house construction capability and expertise allow for greater control over cost and qualitycontrol over cost and quality
•• InIn‐‐house sales/leasing teamhouse sales/leasing team
• Renown for developing signature properties• Strong reputation for quality products• Experienced management team
•• Renown for developing signature propertiesRenown for developing signature properties•• Strong reputation for quality productsStrong reputation for quality products•• Experienced management teamExperienced management team
• Disciplined approach in land acquisitions• Committed to growing portfolio of quality assets for recurring income
•• Disciplined approach in land acquisitionsDisciplined approach in land acquisitions•• Committed to growing portfolio of quality assets for recurring iCommitted to growing portfolio of quality assets for recurring incomencome
• Healthy balance sheet with low gearing• Prudent capital management
•• Healthy balance sheet with low gearingHealthy balance sheet with low gearing•• Prudent capital managementPrudent capital management
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Management Reporting Structure
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Board of Directors
Teo Ho BengTeo Ho BengExecutive Chairman & CEOExecutive Chairman & CEO• Possesses more than 30 years of experience in the construction and property industries and over 20 years of experience in the leisure
industry• Responsible for the formulation of corporate strategies and policies for the Group• Monitoring Hiap Hoe’s performance, and oversees management, budgeting and forecasting procedures to ensure prudent financial
management
Teo Ho Kang, RolandTeo Ho Kang, RolandManaging DirectorManaging Director• Possesses more than 20 years of experience in the property and leisure industries• Responsible for overseeing the marketing and promotion of the Group’s properties and their performance• Oversees the Group’s product development and business expansion and staff development• Holds a Bachelor in Business Administration from the American Intercontinental University
Tracy WunTracy WunExecutive DirectorExecutive Director• Possesses more than 15 years of experience in the banking industry in her previous tenure with United Overseas Bank Limited in the
Commercial Lending business with industry specialization in Real Estate & Construction as well as Logistics, Shipping and Oil & Gas industry
• Responsible for the Group’s investments
• Graduated from National University of Singapore (Business Administration)
• Attended Effective Board Leadership Module: Financial Literacy and Governance jointly organized by the Singapore Institute of Directors and KPMG Singapore, supported by Singapore Exchange.
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Board of Directors (cont’d)
Chan Wah Tiong Chan Wah Tiong Lead Independent, NonLead Independent, Non‐‐Executive DirectorExecutive Director•Extensive financial, accounting and compliance experience, having served as external Auditor, Accountant, Financial Analyst, Financial Director and CFO of several companies (both local and multinational) in semiconductor, manufacturing, trading, construction and non profit organization•Being Certified Public Accountant with the Institute of Certified Public Accountants of Singapore
Chan Boon Hui Chan Boon Hui Independent, NonIndependent, Non‐‐Executive DirectorExecutive Director•Presently the Managing Director of Chancery Capital Pte Ltd•Has more than 15 years of investment banking experience with OCBC Bank, BNP Paribas and the Rothschilds Group in Singapore and New York•Graduated from Cambridge University (UK) with a Master of Arts (Hons)(Law)•Chartered Financial Analyst
Kwok Chui Lian Kwok Chui Lian Independent, NonIndependent, Non‐‐Executive DirectorExecutive Director•Currently the President and CEO of AFC Merchant Bank•Possesses almost 20 years experience with OCBC Bank•Holds a Bachelor of Arts (Hons) degree in Economics from the City of Birmingham Polytechnic, UK •Being a Fellow of The Institute of Chartered Secretaries and Administrators and has attended executive management programs at both Wharton‐SMU University (General Management Programme in 2004) and The Wharton School at the University of Pennsylvania (The Leadership Journey‐Creating and Developing your leadership in 2006)
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Key Management
Aw Hui Mien, Jenny• Has more than 18 years of combined experience in audit,
finance and accounting• Worked with KPMG Singapore prior to Hiap Hoe Group• A Chartered Accountant Singapore , responsible for the
overall financial related matters and accounting functions of the Group
Teo Poh Sim, Agnes • Possesses more than 11 years of experience in human
resource and administration
• Responsible for formulating the human resource and administration policies of the Group
• Oversees the Group payroll, staff welfare and staff development as well as administration
• Holds a Bachelor of Arts degree from the Pacific Union College (USA)
Chew Char ChoonChew Char Choon• Has 25 years of experience in the construction industry
• Responsibilities include implementing the best construction techniques and ensuring the timely completion and delivery of quality projects
• Holds a Bachelor of Science in Civil Engineering from South Dakota State University
Charlotte TanCharlotte Tan• Possesses more than 16 years of project management and design
• Oversees the design and planning, project management and construction, procurement, lease management, sales & marketing for Hiap Hoe Group
• holds a Bachelor of Applied Science in Construction Management (Hons) degree
Raymond Low Raymond Low • Contributes in the aspects of spearheading designs and creating new benchmark developments for the Group
• Practised 12 years with DP Architects Group as Associate Director
• Specialised in hospitality, commercial, retail and residential projects
May TayMay Tay• Responsibilities include the leasing of commercial and residential properties within the Group.
• Previously with Dairy Farm Group, Mapletree and Jones Lang LaSalle
• Holds a Bachelor of Business (Property) degree from University of South Australia
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Company OverviewCompany Overview
Business UpdateBusiness UpdateFinancial HighlightsFinancial Highlights
Moving ForwardMoving Forward
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Residential DevelopmentResidential Development
5/5A Balmoral Road5/5A Balmoral Road68 St Thomas Walk68 St Thomas Walk1 Lewis Road1 Lewis Road
45/47 Toh Tuck Road45/47 Toh Tuck Road65 Cavenagh Road65 Cavenagh Road
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3636‐‐storey skyscraper with 61 residencesstorey skyscraper with 61 residences
TenureTenure : Freehold: Freehold
Land areaLand area : : ∼∼44,003 sq ft44,003 sq ftGFAGFA : 123,205 sq ft: 123,205 sq ft
land costland cost : S$715 psf ppr: S$715 psf pprNo. of units soldNo. of units sold : 49: 49
TOPTOP : September 2012: September 2012
ArtistArtist’’s Impressions Impression68 St Thomas Walk
Skyline 360Skyline 360°° @ St Thomas Walk@ St Thomas Walk
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Signature @ Lewis Signature @ Lewis
1212‐‐storey in prime location with 32 residencesstorey in prime location with 32 residencesTenureTenure : Freehold: FreeholdLand areaLand area : : ∼∼2121,679 sq ft,679 sq ftGFAGFA : 34,682 sq ft: 34,682 sq ftLand costLand cost : S$710 psf ppr: S$710 psf pprNo. of units soldNo. of units sold : 30: 30LaunchLaunch : 2009: 2009TOPTOP : October 2011: October 2011
ArtistArtist’’s Impressions Impression1 Lewis Road
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Residential Development Residential Development
Skyline 360O
At St Thomas WalkSignature @ Lewis
% Sold% Sold 8080%% 9494%%
Land Cost (psf ppr)Land Cost (psf ppr) S$715S$715 S$710S$710
Average Selling Price (psf)Average Selling Price (psf) S$2,078S$2,078 S$1,364S$1,364
Highest Price Achieved (psf)Highest Price Achieved (psf) S$2,508S$2,508 S$1,629S$1,629
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Waterscape At Cavenagh Waterscape At Cavenagh
4 blocks of 74 blocks of 7‐‐storey and 2 blocks of 6storey and 2 blocks of 6‐‐storey apartment with resort storey apartment with resort themed with 200 residencesthemed with 200 residences
TenureTenure : Freehold: Freehold
Land areaLand area : : ∼∼101101,193 sq ft,193 sq ft
GFAGFA : 212,514 sq ft: 212,514 sq ft
Land costLand cost : S$618 psf ppr: S$618 psf ppr
No. of units soldNo. of units sold : 150: 150
LaunchLaunch : 2010: 2010
Expected TOPExpected TOP : December 2014: December 2014
ArtistArtist’’s Impressions Impression65, 65A to 65E Cavenagh Road
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Residential DevelopmentResidential Development
Waterscape At Cavenagh
% Sold% Sold ∼∼75%75%
Land Cost (psf ppr)Land Cost (psf ppr) S$618S$618
Average Selling Price (psf)Average Selling Price (psf) S$1,909S$1,909
Highest Price Achieved (psf) S$2,173S$2,173
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The Beverly (Joint Venture)The Beverly (Joint Venture)
2 blocks of 52 blocks of 5‐‐storey with 118 residencesstorey with 118 residences
TenureTenure : Freehold: Freehold
Land areaLand area : : ∼∼123123,958 sq ft,958 sq ftEquity stakeEquity stake : 60%: 60%
GFAGFA : 173,537 sq ft: 173,537 sq ft
Land costLand cost : S$442 psf ppr: S$442 psf ppr
No. of units soldNo. of units sold : 112: 112
LaunchLaunch : 2009: 2009
TOPTOP : October 2012: October 2012
45/47 Toh Tuck Road
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1212‐‐storey comprising 48 apartment unitsstorey comprising 48 apartment unitsEquity stakeEquity stake : 60%: 60%
TenureTenure : Freehold: Freehold
Land areaLand area : : ∼∼46,436 sq ft46,436 sq ftGFAGFA : 80,235 sq ft: 80,235 sq ftLand costLand cost : S$1,723 psf ppr: S$1,723 psf ppr
Expected launchExpected launch : 2013: 2013TOPTOP : November 2012: November 2012
ArtistArtist’’s Impressions Impression5 Balmoral Road
Treasure on Balmoral (Joint Venture)Treasure on Balmoral (Joint Venture)
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Residential Development (Joint Venture)Residential Development (Joint Venture)
The Beverly
Treasureon Balmoral
% Sold% Sold 9595%% ‐‐
Land Cost (psf ppr)Land Cost (psf ppr) S$442S$442 S$1,723S$1,723
Average Selling Price (psf)Average Selling Price (psf) S$805S$805 N.A.N.A.
Highest Price Achieved (psf)Highest Price Achieved (psf) S$969S$969 N.A.N.A.
Equity InterestEquity Interest 60%60% 60%60%
Joint Venture PartnerJoint Venture Partner SMPLSMPL11 SHLSHL22
Footnote:‐
1 – SuperBowl Management Pte Ltd
2 – SuperBowl Holdings Limited
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First Hotel/Commercial Integrated Development First Hotel/Commercial Integrated Development At Zhongshan Park, SingaporeAt Zhongshan Park, Singapore
ArtistArtist’’s Impressions Impression
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• Developed on 99‐yr leasehold site with 190,107 sq ft land area
• Landmark development preserves rich heritage of Sun Yat Sen Nanyang Memorial Hall along Balestier, Singapore
• Two hotels managed by international chain operator, Wyndham Group4‐star Ramada Singapore features 384 rooms 3‐star Days Hotel features 405 rooms
• ∼107,486 sq ft of commercial net lettable area, comprising a 13‐storey office block and other retail / F&B space. Zhongshan Mall anchor tenants include Fairprice Finest, Crystal Jade Steamboat, Breadtalk, Guardian and Cheers
• Occupancy rates for Zhongshan Mall and Hiap Hoe Office Tower have reached 91% and 60%, respectively, as at 30 June 2013
Hotel/Commercial ProjectHotel/Commercial Project
Integrated development includes:Integrated development includes:••Days Hotel Singapore at Zhongshan Park Days Hotel Singapore at Zhongshan Park ••Ramada Singapore at Zhongshan ParkRamada Singapore at Zhongshan Park••Hiap Hoe Office TowerHiap Hoe Office Tower••Zhongshan Mall Zhongshan Mall
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On‐going Property DevelopmentIndustrial Development At Kallang Pudding Road
Light industrial units : 55
Tenure : Freehold
Land area : ∼48,121 sq ft
GFA : ∼120,304sq ft
Land cost : S$324 psf ppr
Expected launch : 2014
TOP : 2016
Proposed New Erection Of A Block Of 9‐Storey Multiple‐User Light Industrial Development
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Foray into Overseas Residential DevelopmentAcquired 6‐22 Pearl River Road, Melbourne, Australia
Possesses approved planning permit for the development of 425 residential units
Tenure : Freehold
Land area : 3,795 sq m
Total land cost : S$33.6 million
Group seeks to review approved plans and explore a mixed‐use development with a serviced apartment/hotel component
Waterfront site will serve as the Group’s maiden overseas flagship development
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Foray into Overseas Residential DevelopmentAcquired 6‐22 Pearl River Road, Melbourne, Australia
• The distinctive waterfront development offers an attractive lifestyle experience: next to Victoria Harbour and CBD
• Well located and poised to benefit from strong population growth and foreign investors
• The Australian government has announced a multi‐million dollar plan to rejuvenate the western end of Docklands with first phase valued at A$18m
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Investment ActivitiesAcquired 14.9% interest in Ley Choon Group
• Acquired 14.9% of Ley Choon Group through a placement of 88,268,000 shares at a placement price of S$0.1642 per share or a total of S$14.5 million. Placement price represents a 10% discount to closing price on 30 July 2013
• Ley Choon Group is an established Singapore underground utilities infrastructure service provider with a 20‐year track record
• Investment is central to the Group’s strategy of growing its investment activities to enlarge and diversify its revenue streams
Ley Choon Group Holdings is listed on SGX‐ST with a market capitalisation of S$128.5 million as at 12 Aug 2013
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Company OverviewCompany Overview
Business UpdateBusiness Update
Financial HighlightsFinancial HighlightsMoving ForwardMoving Forward
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55‐‐Year Financial SnapshotYear Financial Snapshot
Year End 31 Dec ($Year End 31 Dec ($’’000)000) FY12FY12 FY11FY11 FY10FY10 FY09FY09 FY08FY08
RevenueRevenue 145,668145,668 136,414136,414 106,580106,580 110,480110,480 29,72929,729
Gross ProfitGross Profit 57,67157,671 46,56946,569 49,75149,751 43,79843,798 13,19113,191
Profit Before TaxProfit Before Tax 66,85566,855 54,52754,527 39,57739,577 41,62241,622 8,2528,252
Profit After TaxProfit After Tax 57,54057,540 47,36947,369 34,56734,567 34,30934,309 8,1788,178
EPS (cents)EPS (cents) 12.3012.30 10.0610.06 7.337.33 7.267.26 2.462.46
8,178
34,309 34,567
47,36957,540
28% 31% 32% 35% 40%
-100%-90%-80%-70%-60%-50%-40%-30%-20%-10%0%10%20%30%40%50%60%
05,000
10,00015,00020,00025,00030,00035,00040,00045,00050,00055,00060,00065,00070,00075,00080,00085,000
FY08 FY09 FY10 FY11 FY12
Net Profit Net Profit Margin
Stable Revenue & Profitability Growth (S$’000)
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2Q/1H FY2013 Financial Highlights 2Q/1H FY2013 Financial Highlights
(S$(S$’’000)000) 2QFY132QFY13 2QFY122QFY12 Change Change (%)(%) 1HFY131HFY13 1HFY121HFY12 ChangeChange
(%)(%)
RevenueRevenue 80,30180,301 42,95042,950 87.087.0 110,648110,648 80,41980,419 37.637.6
Gross ProfitGross Profit 38,26738,267 16,41216,412 133.2133.2 52,24452,244 30,28430,284 72.572.5
Profit Before TaxProfit Before Tax 35,32835,328 19,35519,355 82.582.5 47,05647,056 35,64935,649 32.032.0
Profit After TaxProfit After Tax 29,00729,007 16,66116,661 74.174.1 38,79038,790 30,71030,710 26.326.3
EPS (cents)EPS (cents) 6.246.24 3.543.54 76.376.3 8.408.40 6.536.53 28.628.6
•• Revenue up 87% driven by higher progressive revenue recognistionRevenue up 87% driven by higher progressive revenue recognistion from project salesfrom project sales•• Gross profit margin improves 9.5 percentage points to 47.7%Gross profit margin improves 9.5 percentage points to 47.7%•• Net profit soars 74.1% to S$29.0 millionNet profit soars 74.1% to S$29.0 million•• Group proposes record high interim cash dividend of 1.2 SingaporGroup proposes record high interim cash dividend of 1.2 Singapore cents (14.3% of e cents (14.3% of
1H2013 net profit)1H2013 net profit)
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Strengthening Shareholders’ Fund with Reducing Gearing
0
50000
100000
150000
200000
250000
300000
350000
400000
FY2003 FY2004 FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 1HFY13
S$'0
00
Shareholders' Funds
0
50
100
150
200
250
300
FY2003 FY2004 FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 1HFY13
Perc
enta
ge (%
)
Gearing Ratio
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Financial Management & Funding Mix Financial Management & Funding Mix
Total Debt* (S$ ‘000)
326,512
135,08881,922 69,919 67,357
58,759
125,152167,770
101,969 77,447
FY09 FY10 FY11 FY12 1HFY13
Long Term Debt Short Term Debt
77,447 67,357
<1-year >1-year
Debt Expiry Profile* (S$’000)
Debt Management
• Proactive deleveraging: Total debt reduced significantly over past few years
• Average cost of borrowing ranging between 0.92% to 1.55305%
• Interest cover at approximately 46 times*
*As at 30 June 2013
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Company OverviewCompany Overview
Business UpdateBusiness Update
Financial HighlightsFinancial Highlights
Moving ForwardMoving Forward
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Moving Forward
Delivering Growth and Sustained ReturnsDelivering Growth and Sustained Returns
DiversificationDiversification
Build Land BankBuild Land Bank
Leverage in-houseExpertise to
Enhance Returns
Leverage in-houseExpertise to
Enhance Returns
Focus on Recurring Income
Focus on Recurring Income
• Two diversified sources of revenue: – Development and sale of properties; and– Investment income• Geographic diversification: 1st foray into Melbourne, Australia
•• Two diversified sources of revenue: Two diversified sources of revenue: –– Development and sale of properties; andDevelopment and sale of properties; and–– Investment incomeInvestment income•• Geographic diversification: 1st foray into Melbourne, AustraliaGeographic diversification: 1st foray into Melbourne, Australia
• Focus on land in prime and strategic locations• Secondary focus on well‐located suburban land parcels• Enbloc acquisitions and tender for newly released land parcels
•• Focus on land in prime and strategic locationsFocus on land in prime and strategic locations•• Secondary focus on wellSecondary focus on well‐‐located suburban land parcelslocated suburban land parcels•• Enbloc acquisitions and tender for newly released land parcelsEnbloc acquisitions and tender for newly released land parcels
• Construction arm to support property development for better costefficiency and quality control
• Proven efficiency in maximising returns
•• Construction arm to support property development for better costConstruction arm to support property development for better costefficiency and quality controlefficiency and quality control
•• Proven efficiency in maximising returnsProven efficiency in maximising returns
• Acquiring investment properties at attractive yields• Recurring income stream from hospitality, retail and office properties
•• Acquiring investment properties at attractive yieldsAcquiring investment properties at attractive yields•• Recurring income stream from hospitality, retail and office propRecurring income stream from hospitality, retail and office propertieserties
End of PresentationEnd of Presentation
HIAP HOE LIMITEDHIAP HOE LIMITED
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Backup SlidesBackup Slides
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(S$(S$’’000)000) @30 Jun@30 Jun20132013
@31 Dec @31 Dec 20122012
@31 Dec @31 Dec 20112011
@31 Dec @31 Dec 20102010
@31 Dec @31 Dec 20092009
@31 Dec @31 Dec 20082008
Total AssetsTotal Assets 615,411615,411 590,296590,296 592,177592,177 527,535527,535 601,924601,924 534,332534,332
Total LiabilitiesTotal Liabilities 273,646273,646 284,975284,975 340,734340,734 320,542320,542 426,940426,940 392,714392,714
Share Capital & PremiumShare Capital & Premium 84,44584,445 84,44584,445 84,44584,445 84,44584,445 84,44584,445 84,44584,445‐‐ accumulated losses prior to accumulated losses prior to
RTORTO (7,671)(7,671) (7,671)(7,671) (7,671)(7,671) (7,671)(7,671) (7,671)(7,671) (7,671)(7,671)
‐‐ accumulated profits post RTOaccumulated profits post RTO 261,393261,393 227,518227,518 174,352174,352 129,268129,268 96,96996,969 63,80063,800‐‐ other reserves*other reserves* 4,5974,597 1,3031,303 261261 828828 1,0231,023 786786
Minority InterestMinority Interest (1,000)(1,000) (274)(274) 5656 123123 218218 258258
Total EquityTotal Equity 341,765341,765 305,321305,321 251,443251,443 206,993206,993 174,984174,984 141,618141,618
Total Equity & LiabilitiesTotal Equity & Liabilities 615,411615,411 590,296590,296 592,177592,177 527,535527,535 601,924601,924 534,332534,332
Balance SheetBalance Sheet
Net Asset Value Per Share (cents)Net Asset Value Per Share (cents) 72.8472.84 64.9464.94 53.3953.39 43.8143.81 36.9736.97 37.3837.38
Gearing Gearing 0.42x0.42x 0.56x0.56x 0.99x0.99x 1.26x1.26x 2.20x2.20x 2.60x2.60x
*other reserves for FY09, FY10, FY11 & FY12 includes Treasury Sh*other reserves for FY09, FY10, FY11 & FY12 includes Treasury Shares ares
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Cash FlowCash Flow
(S$(S$’’000)000) @30 Jun @30 Jun 20132013
@31 Dec @31 Dec 20122012
@31 Dec @31 Dec 20112011
@31 Dec @31 Dec 20102010
@31 Dec @31 Dec 20092009
@31 Dec @31 Dec 20082008
Operating Cash FlowOperating Cash Flow 23,54523,545 62,80962,809 (36,123)(36,123) 195,588195,588 (15,566)(15,566) (281,705)(281,705)
Investing Cash FlowInvesting Cash Flow (762)(762) 12,28912,289 22,86022,860 (32,546)(32,546) (247)(247) (41,574)(41,574)
Financing Cash FlowFinancing Cash Flow (22,120)(22,120) (64,868)(64,868) (12,817)(12,817) (129,911)(129,911) 9,2659,265 302,911302,911
Net +/(‐) in cash and cash equivalents
663 10,231 (26,080) (33,130) (6,548) (20,368)
Cash and cash Cash and cash equivalents at beginning equivalents at beginning of yearof year
20,60020,600 10,37010,370 36,44936,449 3,3193,319 9,8679,867 30,23530,235
Cash and cash equivalents at end of year
21,263 20,600 10,370 36,449 3,319 9,867
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Key Financial Ratios
Consolidated 1HFY131HFY13 FY12FY12 FY11FY11 FY10FY10 FY09FY09 FY08FY08
Gross Margin 47.2% 39.6% 34.1% 46.7% 39.6% 44.4%
Operating Margin 41.7% 37.2% 32.5% 36.1% 37.7% 29.9%
Net Margin (Profit after Tax)
35.1% 39.5% 34.7% 32.4% 31.1% 27.5%
Total Borrowings / Total Assets
0.24x 0.29x 0.42x 0.49x 0.64x 0.69x
Net Borrowings / Total Assets
0.20x 0.26x 0.40x 0.42x 0.63x 0.67x
Total Borrowings / Total TNW
0.42x 0.56x 0.99x 1.26x 2.20x 2.60x
Net Borrowings / Total TNW
0.36x 0.50x 0.95x 1.08x 2.18x 2.53x
Total Tangible Net Worth (TNW)‐$’000
341,765 305,321 251,443 206,993 174,984 141,618