Slide 1: Briefing to Analysts on Keppel's Property Business
Briefing to Analysts on Keppel’s Property Business 7 June 2016 1
Slide 2: Disclaimer
Disclaimer This release may contain forward-looking statements which are subject to risks and uncertainties that could cause actual results to differ materially from such statements. Such risks and uncertainties include industry and economic conditions, competition, and legal, governmental and regul
Slide 3: Innovating Solutions for Sustainable Urbanisation
Innovating Solutions for Sustainable Urbanisation Our vision is to be a global company at the forefront of our chosen industries, shaping the future for the benefit of all our stakeholders. Keppel meets the world’s sustainable urbanisation needs through key businesses in Offshore & Marine, Property,
Slide 4: Creating & Capturing Sustainable Value
Creating & Capturing Sustainable Value Capturing value: Project-Based SALE & SERVICE DESIGN • Newbuilds, repair & upgrading projects & • Residential projects BUILD • WTE technology packages Revaluation Operation & Divestment Fee-based • Offshore & Marine • Property OWN STABILISE TRUSTS • Infrastruct
Slide 5: Fueling Growth through Asset Management
Fueling Growth through Asset Management Keppel Capital will boost our capital recycling platform and expand our capital base with co-investors. Harnessing synergies to: Private Funds increase recurring Property Among SGX’s fee income largest Pan-Asian commercial REITs Manages 5 property crea
Slide 6: Keppel's Property Division Vision and Mission
Keppel’s Property Division Vision: A leading real estate company, shaping the best for future generations. Mission: Guided by our operating principles and core values, we will create value for all stakeholders through innovative real estate solutions. 6
Slide 7: Growing Contributions from Property
Growing Contributions from Property Privatisation of Keppel Land was immediately accretive Property contributed additional S$252 million to FY 2015 net profit, after S$15 million interest cost. Reinforced the Keppel Group’s multi-business strategy Greater flexibility to allocate capital with Kep
Slide 8: Overview of Keppel Land Limited
Overview of Keppel Land Limited 8
Slide 9: Core & Growth Markets
Core & Growth Markets Singapore: Pro-business environment continues to attract investors China: Growing middle class generates high demand for housing Vietnam: Riding on favourable market conditions Indonesia: Heavy government spending to improve infrastructure and social welfare 9
Slide 10: Strategic Focus
Strategic Focus Focus on core markets of Singapore and China, and growth markets of Vietnam and Indonesia Scale up in high-growth cities Focus on lifestyle residential developments, townships, office, retail and mixed-use developments Expand commercial development portfolio overseas Select
Slide 11: Strategic Acquisitions & Alliances
Strategic Acquisitions & Alliances Deepened strategic alliance with Vanke, China Acquired 75% stake in Array Real Estate (renamed as Keppel Land Retail Management) Acquired a stake in 112 Katong Mall Purchased stakes in prime development sites in Thu Thiem, HCMC Invested in Nam Long Group,
Slide 12: Proactive Capital Recycling
Proactive Capital Recycling Divested more than S$2.4 billion worth of assets over past two years Recent divestments: BG Junction, Surabaya 77 King Street office building, Sydney The Belvedere, Colombo International Centre, Hanoi Quang Ba Royal Park, Hanoi Keppel Thai Properties, Bang
Slide 13: Key Achievements
Key Achievements Creditable performance Net profit: S$564.1m in FY 2015 and S$89.8 million in 1Q 2016 Home sales: Sold about 4,570 homes in FY 2015, double that of FY 2014 Sold about 940 homes in 1Q 2016, 31% higher yoy Achieved recognition for quality, sustainability and CSR efforts i
Slide 14: Financial Performance: Net Profit
Financial Performance: Net Profit Note: Keppel Land’s net profit above includes divestment and revaluation gains. 14
Slide 15: Net Profit Breakdown
Net Profit Breakdown Note: Keppel Land’s net profit breakdown above excludes divestment and fair value gains. 15
Slide 16: Total Assets Breakdown
Total Assets Breakdown Keppel Land’s total assets grew from S$14.5b in 2014 to S$14.9b in 2015. By Business Segment By Geographical Location 100 100 5 8 14 10 10 14 13 11 15 18 17 16 75 30 75 23 31 26 35 20 28 32 35 43 44 48 50 50 58 63 57 62 25 51 56 55 25 55 51 47 46 38 0 0 2010 2011 2012 2013 201
Slide 17: Breakdown of Total Home Sales (units)
Breakdown of Total Home Sales (units) 5,370 5,000 620 4,500 4,570 260 4,000 1,100 3,000 2,500 2,450 2,350 4,100 3,870 246 620 270 2,000 3,280 940 1,400 1,650 1,900 1,000 50 830 650 480 430 370 304 0 190 60 2010 2011 2012 2013 2014 2015 1Q2016 Singapore China Other Countries 17
Slide 18: Focused on returns, Keppel Land bolsters multi-business strategy
Focused on returns, Keppel Land bolsters our multi-business strategy to capture value at every step, from asset creation to monetisation through the Keppel-managed trusts or funds. 18
Slide 19: Appendix 1
APPENDIX - 1 Keppel Land’s investments and divestments in 2015 & YTD April 2016 19
Slide 20: Keppel Land's Investments in 2015 & YTD April 2016
Keppel Land’s Investments in 2015 & YTD April 2016 Committed > $1.0b to new and existing projects. 2015 Effective Stake Acquisition/ Investment Cost Residential site, West Jakarta 100% $40.2m(1) Stake in Array Real Estate 75% $4.5m Office building, 75 King William Street, London 100% $186m Prime res
Slide 21: Keppel Land's Divestments in 2015 & YTD April 2016
Keppel Land’s Divestments in 2015 & YTD April 2016 Net proceeds of $234m from divestments. 2015 Effective Stake Net Proceeds Stake in BG Junction, Surabaya 80% $38.5m Stake in Harbourfront Towers 1 and 2, Singapore 11.7% $67.7m(1) TOTAL 2015: $106.2m YTD Apr 2016 Office building, 77 King Street, Syd
Slide 22: Appendix 2
APPENDIX - 2 Additional information on the Keppel Group’s Property Division from Keppel Corporation’s 1Q 2016 results announcement. 22
Slide 23: Sales Achieved in China
Sales Achieved in China Units Sold in Sales Value in Average Selling Key Projects Location YTD Mar YTD Mar 2016 Price 2016 (RMB’m) (RMB’psm) 8 Park Avenue (Ph 6) Shanghai 15 405.6 ~98,000 Central Park City (Ph 3, Plot C2) Wuxi 154 127.5 ~7,400 Park Avenue Heights (Ph 1&2) Chengdu 95 172.0 ~14,700 V
Slide 24: Residential Landbank - Singapore
Residential Landbank - Singapore Attributable Total Units Remaining Singapore Stake Tenure Units Sold GFA (sf) Units Launched Units# Launched Projects The Glades 70% 99-yr 384,357 726 480 424 302 Corals at Keppel Bay 100% 99-yr 152,999 366 366 205 161 Reflections at Keppel Bay 100% 99-yr 624,527 1,1
Slide 25: Residential Landbank - China
Residential Landbank - China Total GFA Total Units Units Remaining Units Remaining Area For China Location KLL's Stake (sm) Units Launched Sold For Sale# Sale (sm) 8 Park Avenue Shanghai 99% 133,393 918 918 862 56 9,506 The Springdale Shanghai 99.4% 328,792 2,596 2,596 2,595 1 236^ Seasons Residence
Slide 26: Residential Landbank - Other Overseas
Residential Landbank - Other Overseas Total GFA Units Remaining Remaining Area Projects Stake Total Units Units Sold (sm) Launched Units For Sale# for Sale (sm) Vietnam Saigon Sports City, HCMC 90% 825,648 3,389 - - 3,389 406,697^ Estella Heights, HCMC 98% 160,980 872 872 681 191 24,874^ Riviera Poi
Slide 27: Residential Launch Readiness – China
Residential Launch Readiness – China Units Ready to Launch Projects Location 2016 2017 2018 8 Park Avenue* Shanghai 56 - - The Springdale Shanghai 1 - - Seasons Residence* Shanghai 241 100 - Hill Crest Villa^ Shanghai 56 47 47 Waterfront Residence* Nantong 13 21 28 Central Park City* Wuxi 410 280 50
Slide 28: Residential Launch Readiness – Other Overseas
Residential Launch Readiness – Other Overseas Units Ready to Launch Projects Location 2016 2017 2018 Indonesia West Vista West Jakarta 300 800 800 Vietnam Estella Heights (Ph1&2), Dist 2* HCMC 101 50 40 Riviera Point, Dist 7 HCMC 293# 200^ 399^ Riviera Cove, Dist 9* HCMC 11 5 - South Rach Chiec, Dis
Slide 29: Expected Completion for Launched Projects
Expected Completion for Launched Projects Units Units Total Units Sold as Remaining Expected Projects/Phases launched Launched as at Units at 31 Mar 2016 as at 31 Mar Completion^ 31 Mar 2016 2016 China Waterfront Residence (Ph 1) , Wuxi 62 62 28 34 2Q16 Seasons Garden (Plot 11), Tianjin 270 116 104
Slide 30: Expected Completion for Upcoming Projects
Expected Completion for Upcoming Projects Projects/Phases No. of Units Expected to be Completed^ Location to be launched 2016 2017 2018 China Seasons Residence Shanghai 198 - - Hill Crest Villa Shanghai 112 - 105 Central Park City Wuxi 344 - 780 Waterfront Residence Wuxi - 360 198 Park Avenue Height
Slide 31: New Commercial Projects Overseas
New Commercial Projects Overseas Commercial Projects under Development GFA (sm) Development Cost(1) Completion Indonesia IFC Jakarta Tower 1 (100% stake) 85,131 $273.1m 2020 Vietnam Saigon Centre Ph 2, HCMC (45.3% stake) 47,000 (Retail) $220.3m 2016 (Retail) 44,000 (Office) 2017 (Office) 20,600 (Ser
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