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Roxy-Pacific Holdings LimitedEstablished Specialty Property and Hospitality Group
Results BriefingHalf Year ended June 30, 20132 August 2013
Agenda
Financial Performance
Business Review
Group Borrowings
Outlook
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Results BriefingHalf Year ended June 30, 20132 August 2013
Financial Performance
Roxy-Pacific Holdings LimitedEstablished Specialty Property and Hospitality Group
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Financial Highlights – 1H2013
Achieves 26% growth in profit before tax to S$36.2 m
35% turnover growth, boosted by 54% higher revenue recognition from Property Developmentsegment
Progress billings hits S$1.1 billion, sustained earnings visibility to be progressively recognisedfrom 3Q2013 to FY2017
Strong financial flexibility with cash and cash equivalents of S$323.1 m and a S$200 mMulticurrency Medium Term Note Programme established in March 2013
Declares interim dividend of 0.77 SGD cents per share
Roxy-Pacific Holdings LimitedEstablished Specialty Property and Hospitality Group
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Roxy-Pacific Holdings LimitedEstablished Specialty Property and Hospitality Group
Financial Results – 1H2013
1H2013 1H2012 % change
Revenue (S$’m) 122.6 90.8 35%
Gross Profit (S$’m) 41.7 37.2 12%
Gross Margin (%) 34% 41% -7ppt
Pre-tax profit (S$’m) 36.2 28.8 26%
Net Profit (S$’m) 31.4 26.8 17%
EPS (cts) 3.28 2.80 17%
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Roxy-Pacific Holdings LimitedEstablished Specialty Property and Hospitality Group
Financial Results – 2Q2013
2Q2013 2Q2012 % change
Revenue (S$’m) 68.9 52.7 31%
Gross Profit (S$’m) 23.4 20.5 14%
Gross Margin (%) 34% 39% -5ppt
Pre-tax Profit (S$’m) 21.7 17.7 23%
Net Profit (S$’m) 19.5 17.7 10%
EPS (cts) 2.05 1.86 10%
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Roxy-Pacific Holdings LimitedEstablished Specialty Property and Hospitality Group
Financial PerformanceTurnover Trend (S$’m)
Revenue increased by 31% y-o-yRevenue increased by 28% q-o-qOverall, revenue increased by 35% to $122.6m in 1H2013
$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
$68.9
$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
$183.7 $190.6
$216.9
$163.5
$122.6
35%
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$2.7 $4.2 $6.4 $9.0 $10.0 $9.0 $11.8$5.0$8.9
$9.4$12.9
$16.5 $17.7$19.5
$2.5
$8.7 $6.2
$8.9
$13.4$8.3
$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
$24.7
$19.2
$27.9
$42.8
$51.8
$58.3
$31.4
Roxy-Pacific Holdings LimitedEstablished Specialty Property and Hospitality Group
Financial PerformanceProfit Trend (S$’m)
2Q2013 net profit increased by 7% y-o-y2Q2013 net profit increased by 65% q-o-qOverall, net profit increased by 17% to $31.4m in 1H2013
17%
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$99.4
$64.5
$23.2
$26.3
$-
$20.0
$40.0
$60.0
$80.0
$100.0
$120.0
$140.0
1H2013 1H2012
Property Development Hotel Ownership & Property Investment
Roxy-Pacific Holdings LimitedEstablished Specialty Property and Hospitality Group
Segment Results – 1H2013Revenue (S$’m)
19%
81%
29%
71%
$122.6
$90.854%
12%
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$30.1$19.9
$8.8
$11.5
$5.3
$4.4
$0.0
$5.0
$10.0
$15.0
$20.0
$25.0
$30.0
$35.0
$40.0
$45.0
$50.0
1H2013 1H2012Property Development
Hotel Ownership & Property Investment
Fair value gain on investment properties
Roxy-Pacific Holdings LimitedEstablished Specialty Property and Hospitality Group
Segment Results – 1H2013Adjusted EBITDA* (S$’m)
$44.2
$35.8
20%
24%
52%
12%
20%
68%
12%
32%
56%
* Excludes corporate expenses and gain on disposal ofavailable-for-sale financial assets
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(1) Cash holdings include project account monies amounting to S$140.9m as at 30 June 2013 (31 December 2012: S$131.5m)
Total assets ( S$’m) 1,105.6 924.1 19.6%
Total debt ( S$‘m) 770.7 611.4 26.1%
Cash & cash equivalents ( S$‘m) 323.1 253.2 27.6%
Net Assets Value (“NAV”) ( S$‘m) 276.0 253.6 8.8%
Adjusted Net Assets Value (“ANAV”) (S$‘m) 656.8 638.1 2.9%
NAV per share (cents) 28.9 26.6 8.6%
ANAV per share (cents) (2) 68.8 66.8 2.9%
Cash holdings per share (cents) (1) 33.8 26.5 27.6%
Net Debt to ANAV (times) 0.68 0.56 21.4%
Return on Equity (%) 22.9 23.0 (0.6%)
(1)
(2)
(2) The fair value of Grand Mercure Roxy Hotel and office premise was estimated to be S$461.9m as at 30 June 2013 (31 December 2012: S$459.7m)
30 Jun 13 31 Dec 12 Increase / (Decrease)
Roxy-Pacific Holdings LimitedEstablished Specialty Property and Hospitality Group
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Roxy-Pacific Holdings LimitedEstablished Specialty Property and Hospitality Group
Business ReviewProperty Development
Results BriefingHalf Year ended June 30, 20132 August 2013
12
$2.9$6.6
$7.6
$7.9
$3.9
$48.6$32.4
$11.3
$3.1
$19.5
8.1
$4.1$8.0
0
20
40
60
80
100
120
1H2013 1H2012
The MKZ
Treescape
Space@Kovan
Jupiter 18
Spottiswoode 18
Straits Residences
Studios@Tembeling (TOP: Jul 12)
Nova 88 (TOP: Apr 12)
The Verte (TOP: Jan 12)
Revenue from Property Development (S$’m)
Increase in revenue by 54%from $64.5 million in 1H2012to $99.4 million in 1H2013
Mainly due to
• Recognition of higherrevenue fromSpace@Kovan, Jupiter 18& Spottiswoode 18
• Recognition of revenuefrom new developmentprojects –Treescape &The MKZ.
• Partly offset by absenceof revenue recognitionfrom The Verte, Nova 88& Studios@Tembeling
Roxy-Pacific Holdings LimitedEstablished Specialty Property and Hospitality Group
54%
Business Review – 1H2013Property Development
$99.4
$64.5
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Attributable PD revenue from JV projects $23.7 $5.8 309%
Total Group PD Revenue (including JV projects) $123.1 $70.4 75%
1H2013 1H2012 % change
Group PD Revenue $99.4 $64.6 54%
Attributable Revenue from Property Development (“PD”) – including JV projects (S$’m)
Business Review – 1H2013Property Development
Roxy-Pacific Holdings LimitedEstablished Specialty Property and Hospitality Group
Jupiter18, $11.3
, 9%
StraitsResidences,
$7.9 , 6%
Spottiswoode18, $48.6 ,
39%
Space@Kovan, $19.5 , 16%
Treescape,$4.1 , 3%
The MKZ,$8.0 , 7%
Haig 162$2.22%
Eon Shenton,$4.8 , 4%
Natura@Hillview
$11.49%
NottinghillSuites, $4.6 , 4%
Millage$0.81%
Other, $23.7 ,20%
1H2013
The Verte ,$2.9 , 4%Nova 88,
$6.6 , 9%
Studios@Tembeling ,$7.6 , 11%
Jupiter 18,$3.1 , 4%
StraitsResidences,
$3.9 , 6%
Spottiswoode 18,
$32.4 , 46%
Space@Kovan, $8.1 ,
12%
Haig 162,$5.8 , 8%
Other, $5.8, 8%
1H2012
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Share of results in associates (S$’m)Business Review – 1H2013Property Development
Roxy-Pacific Holdings LimitedEstablished Specialty Property and Hospitality Group
0.06
1.09
1.660.05
1.44
(0.30)
0.87
0.02
(0.50)
-
0.50
1.00
1.50
2.00
2.50
3.00
3.50
4.00
4.50
1H2013 1H2012
Millage
NottingHill Suites
Eon Shenton
Natura@Hillview
Haig 162
482%
$4.11
$0.71
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$188.4
$336.5 $346.2$471.6
$751.2
$1,031.5
$1,347.1
$53.0 $78.7 $65.4$143.0 $152.6 $169.8
$266.8
$0.0
$200.0
$400.0
$600.0
$800.0
$1,000.0
$1,200.0
$1,400.0
$1,600.0
2007 2008 2009 2010 2011 2012 1H2013
Sales value Revenue recognised
Roxy-Pacific Holdings LimitedEstablished Specialty Property and Hospitality Group
Strong attributable progress billings to be recognised (S$’m)Business Review – 1H2013Property Development
(1) Based on Option to Purchase granted up to 24 July 2013
$861.7
$1,080.3
(1)Increased by
25.4%compared to
FY2012
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Business Review – 1H2013Property Development Strong attributable progress billings to be recognised – By Projects (S$’m)
(1) Based on Option to Purchase granted up to 24 July 2013 (2) Launched in April 2013 (3) Launched in May 2013
Roxy-Pacific Holdings LimitedEstablished Specialty Property and Hospitality Group
Project name Type of development Group stakeTotal units in
project Unit soldAttributable
total sale value (1)
Attributable revenuerecognised up to
30 Jun 2013
Balance attributableprogress billings to be
recognisedfrom 3Q2013
% Unit % $'m $'m $'m1 Straits Residences Residential 100% 30 97% 19.6 18.4 1.22 Jupiter 18 Residential 100% 53 100% 35.8 27.9 7.93 Space@Kovan Shop 100% 56 100% 46.6 14.1 32.5
Residential 100% 140 100% 113.1 34.2 78.94 Spottiswoode 18 Residential 100% 251 100% 254.4 126.3 128.15 Nottinghill Suites Residential 45% 124 100% 39.5 8.5 31.06 Wis@Changi Shop 100% 7 100% 4.9 - 4.9
Restaurant 100% 16 100% 12.9 - 12.9office 100% 60 100% 60.5 - 60.5
7 Centropod@Changi Shop 100% 108 100% 54.4 - 54.4Restaurant 100% 9 100% 8.3 - 8.3
Office 100% 75 100% 78.7 - 78.78 Treescape Residential 100% 30 100% 29.2 9.5 19.79 Millage Residential 48% 70 100% 23.5 0.3 23.2
Shop 48% 86 100% 28.7 0.4 28.310 Natura@Hillview Residential 49% 193 100% 72.2 12.3 59.911 Eon Shenton Office 20% 98 97% 57.8 3.6 54.2
Residential 20% 132 93% 37.3 2.4 34.9Shop 20% 23 100% 4.8 0.3 4.5
12 The MKZ Residential 100% 42 100% 51.8 8.6 43.213 Jade Residences(2) Residential 100% 171 60% 123.6 - 123.6
Shop 100% 2 0% - - -14 Whitehaven(3) Residential 100% 120 76% 109.8 - 109.8
Shop 100% 1 100% 1.2 - 1.215 LIV on Sophia(3) Residential 90% 64 100% 78.5 - 78.5
Total 1,961 1,347.1 266.8 1,080.3
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Landbanks
(1) the acquisition is subject to and conditional upon the approval of the Court.(2) The acquisition is subject to and conditional upon the obtaining of an Order for Sale from the Strata Titles Board or the Court (as case may be)
approving this sale and purchases, if necessary.(3) equivalent to RM42,198,441.
Roxy-Pacific Holdings LimitedEstablished Specialty Property and Hospitality Group
Location / Description ApproximateLand Area
ApproximateGross Floor Area
Group’sstake
ApproximateAttributable Gross
Floor Area
ApproximateAttributable Land
Cost(sq ft) (sq ft) % (sq ft) $’m
1 211-223A Pasir Panjang Road, Singapore(1)
30,745 43,043 45% 19,369 14.9(Currently known as Harbour View Gardens)
2 LIV on Wilkie 22,533 47,319 90% 42,587 51.87/9/11/13/15 Wilkie Terrace, Singapore
3 134B Lorong K Telok Kurau Singapore 23,160 32,423 100% 32,423 25.0(Currently known as Sunnyvale)
4 111 Tampines Road Singapore(2)
78,030 163,862 100% 163,862 136.0(Currently known as Yi Mei Garden)
5 Lot 3370, Section 41, Jalan Dewan Sultan Sulaiman,Kuala Lumpur
64,131 698,717 47% 328,397 16.9(3)
218,599 985,364 586,638 244.6
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Roxy-Pacific Holdings LimitedEstablished Specialty Property and Hospitality Group
Results BriefingHalf Year ended June 30, 20132 August 2013
Business ReviewHotel Ownership
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92.5%
88.0%86.2%
94.2% 94.6%
89.9%91.7%
81.5%
$154.4
$200.3
$147.0
$166.4
$188.3$199.9 $200.6 $196.1
$142.8
$176.3
$126.7
$156.7
$178.1 $179.7 $184.0
$159.8
$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 1H2012 1H2013
AOR ARR RevPar
AOR , ARR & RevPar
Business Review – 1H2013Hotel Ownership RevPar decreased by 13% to $159.8 in 1H2013 compared
to $184.0 in 1H2012
* Decrease due to closure of hotel rooms for renovation. The room renovation was completed in June 2013.
Roxy-Pacific Holdings LimitedEstablished Specialty Property and Hospitality Group
10ppt*
13%
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Roxy-Pacific Holdings LimitedEstablished Specialty Property and Hospitality Group
Hotel Revenue (S$’m)
Business Review – 1H2013Hotel Ownership Hotel revenue decreased by 12% from S$25.5 m in 1H2012 to S$22.4 m
in 1H2013
8.511.7 10.0 10.3 11.7 13.1 10.9
9.1
12.6
8.711.0
12.012.4
11.5
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
$22.4
12%
21
3.6 5.3 3.4 3.9 4.8 5.4 3.7
3.95.8
3.0 4.65.0 4.8
4.2
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
Q4
Q3
Q2
Q1
$16.8
$21.6
$13.3
$17.7
$20.4$19.6
$7.9
Roxy-Pacific Holdings LimitedEstablished Specialty Property and Hospitality Group
Hotel Net Operating Profits (“NOP”) (S$m)
Business Review – 1H2013Hotel Ownership
Hotel NOP decreased by 22.5% from $10.2m in 1H2012 to S$7.9m in 1H2013
Hotel Net Operating Profits is defined as the earnings before interest, taxes, depreciation and amortisation.
22.5%
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Roxy-Pacific Holdings LimitedEstablished Specialty Property and Hospitality Group
Business ReviewProperty Investment
Results BriefingHalf Year ended June 30, 20132 August 2013
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Roxy-Pacific Holdings LimitedEstablished Specialty Property and Hospitality Group
Business Review – 1H2013Property Investment
Revenue (S$’m)
$0.6
$1.8
$1.0
$1.3
$1.5
$1.6
$1.7
$0.83 $0.85
$0.0
$0.5
$1.0
$1.5
$2.0
$2.5
$3.0
$3.5
FY2009 FY2010 FY2011 FY2012 1H2012 1H2013
Kovan Centre Roxy Square
$1.9
$3.3
$2.6
Increased by 2% in 1H2013 due tohigher rental rates from shop unitsin Roxy Square
2%
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Roxy-Pacific Holdings LimitedEstablished Specialty Property and Hospitality Group
2 August 2013
Results BriefingHalf Year ended June 30, 2013
GroupBorrowings
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Group BorrowingsDebt Profile 30 Jun 13 31 Dec 12
Total borrowings $770.7m $611.4m
Fixed rate loans $102.3 m $183.8 m
Fixed rate loans as % of total loans (1) 13% 30%
Interest cover ratio (times) 14.3 16.2
Weighted average term for fixed rates loans 14 months 13 months
Weighted average interest rate (fixed rates loans) 2.22% 2.45%
Weighted average interest rate (floating rates loans) 1.95% 1.92%
(1) Includes $27.7 m loans under interest rate swap contracts to swap floating interest rates for fixed interest rates
Roxy-Pacific Holdings LimitedEstablished Specialty Property and Hospitality Group
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Development loans -sold projects, $383.5,
50%
Development loans -unsold projects, $189.6,
25%
Revolving loans, $77.5,10%
Repayable in June 2014$4.2, 1%
Repayable in July 2014 toJune 2018, $53.4, 7%
Repayable after July 2018,$62.5, 8%
Term loans(Hotel & Shops)
$120.1, 16%
$573.1, 75%
Group BorrowingsDebt Profile as at 30 June 2013 (S$’m)
Total outstanding debts of S$770.7 m as at 30 June 2013
Roxy-Pacific Holdings LimitedEstablished Specialty Property and Hospitality Group
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Roxy-Pacific Holdings LimitedEstablished Specialty Property and Hospitality Group
Results BriefingHalf Year ended June 30, 20132 August 2013
Outlook
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Outlook1. General
- Based on advance estimates by Ministry of Trade and Industry Singapore (“MTI”), Singapore’s economy grew by 3.7% on a year-on-year basis in the
2nd quarter of 2013, compared to 0.2% in the 1Q2013. On a quarter-on-quarter seasonally-adjusted annualised basis, the economy grew by 15.2%,
faster than the 1.8% growth in the previous quarter.
2. Property Development
- Based on latest statistics released by Urban Redevelopment Authority (“URA”) on 26th July 2013, prices of private residential properties increased
by 1.0% in 2nd Quarter 2013, compared with 0.6% price growth recorded in 1st Quarter 2013.
- The new loan restrictions announced by the Monetary Authority of Singapore (“MAS”) may affect general market sentiment as buyers are
generally more cautious.
- The Group’s progress billings hit S$1.1 billion, the profits of which will be recognised from 3Q2013 to FY2017.
3. Hotel Ownership
- Singapore Tourism Board has forecasted tourism receipts of between S$23.5 to S$24.5 billion and visitor arrivals of between 14.8 million and 15.5
million in 2013 compared to 14.4 million in 2012.
- Along with Singapore’s healthy pipeline of upcoming MICE events, the Group is optimistic that the demand for the Group’s hotel rooms should
continue to be strong in the 2H2013.
4. Strong financial flexibility with cash and cash equivalents of S$323.1m and a S$200m Multicurrency Medium Term Note Programme established in
March 2013.
6. Barring any unforeseen circumstances, the directors expect the Group to be profitable in 2013.
Roxy-Pacific Holdings LimitedEstablished Specialty Property and Hospitality Group
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Roxy-Pacific Holdings LimitedEstablished Specialty Property and Hospitality Group
Results BriefingHalf Year ended June 30, 20132 August 2013
Thank You
30