Slide 1: Half Year Financial Report 1 Jan – 30 Jun 2008
HALF YEAR FINANCIAL REPORT 1 Jan – 30 Jun 2008 14 AUGUST 2008 * Artist’s Impression of South Beach
Slide 2: Agenda
AGENDA 1. FINANCIAL HIGHLIGHTS 2. OPERATIONS REVIEW 3. SINGAPORE PROPERTY MARKET 4. MARKET OUTLOOK * Artist’s Impression of South Beach
Slide 3: Financial Highlights
FINANCIAL HIGHLIGHTS •Artist’s Impression of Shelford Suites
Slide 4: Summary of Financial Highlights
SUMMARY OF FINANCIAL HIGHLIGHTS Q2 Q2 % 1H 1H % 2007 2008 Change 2007 2008 Change Revenue ($m) 775 781 0.7 1,544 1,540 (0.3) Profit before tax ($m) 247 249 0.7 425 481 13.1 PATMI ($m) 194 165 (15.1) 321 330 3.0 PATMI ($m) # 164 165 0.6 286 330 15.4 Basic Earnings Per Share (cents) 20.7 17.5 (15.5) 3
Slide 5: Financial Highlights: Revenue for the Period Ended June
FINANCIAL HIGHLIGHTS Revenue for the Period Ended 30 June 1,600 1,544 1,540 1,400 1,175 1,197 1,164 1,179 1,200 1,129 1,143 1,118 1,109 1,103 1,063 972 1,000 $ million 837 800 600 429 400 200 0 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Period Note : The above financi
Slide 6: Financial Highlights: PATMI for the Period Ended June
FINANCIAL HIGHLIGHTS PATMI for the Period Ended 30 June 350 330 Reduction in tax rates 321 Change in UK legislation on hotel tax allowances 300 309 286 250 232 231 223 200 $ million 157 157 150 131 103 100 85 86 71 77 * 63 * 49 50 0 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 20
Slide 7: Financial Highlights: Revenue for the Quarter Ended June
FINANCIAL HIGHLIGHTS Revenue for the Quarter Ended 30 June 775 781 800 700 602 567 585 585 600 552 500 $ million 400 300 200 100 0 2002 2003 2004 2005 2006 2007 2008 2nd Quarter Note : The above financial information is extracted from half-yearly announcements.
Slide 8: Financial Highlights: PATMI for the Quarter Ended June
FINANCIAL HIGHLIGHTS PATMI for the Quarter Ended 30 June 200 194 Reduction in tax rates 180 187 Change in UK legislation on hotel tax allowances 165 164 160 140 120 $ million 100 80 60 45 35 37 * 40 23 * 20 11 0 2002 2003 2004 2005 2006 2007 2008 2nd Quarter * Restated Note : The above financial inf
Slide 9: Financial Highlights: Profit Before Tax by Segment
FINANCIAL HIGHLIGHTS Profit Before Tax by Segment 1H 2007 1H 2008 % $m $m Change Property Development 238 303 27 Hotel Operations 129 126 2 Rental Properties 27 50 85 Others 32 3 91 Total 426 482 Overall Increase = 13%
Slide 10: Financial Highlights - Segment Analysis
FINANCIAL HIGHLIGHTS - SEGMENT ANALYSIS 1H 2008 1H 2007 1H 2006 Revenue by Segment Property Development Hotel Operations 453.2 469.4 Rental Properties Others $m (29%) (30%) 159.9 24.5 27.4 21.2 (14%) (2%) (2%) (2%) 118.7 95.5 81.0 (8%) (6%) (7%) 952.0 943.1 881.2 (62%) (61%) (77%) $1,539.5m $1,544.3
Slide 11: Financial Highlights: Net Borrowings and Net Gearing
FINANCIAL HIGHLIGHTS Net Borrowings As at 30/06/07 As at 31/12/07 As at 30/06/08 CDL Group Total Net Borrowings $2,777m $3,328m $3,560m Interest Cover Ratio 9.7 x 10.5 x 11.7 x CDL’s Net Gearing (%) (2003 – 30 Jun 2008) 70 Net Gearing (%) 64 54 50 52 50 Note : 48 40 The net gearing ratio does not ta
Slide 12: Financial Highlights: Islamic Financing
FINANCIAL HIGHLIGHTS Islamic Financing • Singapore’s first corporate Islamic unsecured Sukuk-Ijarah financing arrangement • $1 billion Islamic Multi-Currency Medium Term Notes (MTN) • CDL Group currently has 3 conventional MTN programmes and this will diversify the stream of investors
Slide 13: Operations Review
OPERATIONS REVIEW •Artist’s Impression of Livia
Slide 14: Planned Residential Project Launches for H2 2008
OPERATIONS REVIEW Planned Residential Project Launches for 2H 2008 (subject to market conditions) Projects Units Livia (Total 724) – Phase 2 200 “The Arte” at Thomson (Total 336) 100 The Quayside Collection at Sentosa Cove (Total 228) 100 Total 400
Slide 15: Land Bank by Sector
OPERATIONS REVIEW Land Bank by Sector (as at 30 June 2008) Residential (Local & Overseas) 3,054,509 71.7 Commercial / Hotel 739,597 17.4 Industrial 462,818 10.9 TOTAL 4,256,924 100 Residential (Overseas) 8% Industrial 11% Residential (Local) 64% Commercial/ Hotel 17% Proposed GFA - 8.9 million sq ft
Slide 16: Rental Revenue by Sector
OPERATIONS REVIEW Rental Revenue by Sector $96m $119m 120 100 Rental Revenue ($m) 80 77 Office 60 60 Retail Industrial 40 Others * 19 16 20 4 5 16 18 0 1H 2007 1H 2008 * Including car park, serviced apartment and residential
Slide 17: Hotel Revenue by Region
OPERATIONS REVIEW Hotel Revenue by Region 1H 2007 1H 2008 31% 35% 298 New Zealand / Australia 326 7% 69 Europe 7% 67 United States 310 Asia 283 275 267 29% 33% 28% 30% $952m $943m Overall change = 1%
Slide 18: Hotel Occupancy by Region
OPERATIONS REVIEW Hotel Occupancy by Region 90 77.3 80 75.8 76.1 76.1 Hotel Occupancy Rate (%) 69.7 70.2 69.6 66.5 70 60 1H 2007 1H 2008 50 40 30 Asia United States Europe New Zealand / Australia
Slide 19: Hotel Revenue Per Available Room at Constant Currency
OPERATIONS REVIEW Hotel Revenue Per Available Room at Constant Currency 210 181 187 180 159 Hotel RevPAR ($) 144 144 150 136 120 1H 2007 * 88 92 1H 2008 90 60 30 Asia United States Europe New Zealand / Australia * For comparability, the 1H 2007 RevPAR has been translated at constant exchange rates (
Slide 20: Singapore Property Market
SINGAPORE PROPERTY MARKET •Artist’s Impression of Livia
Slide 21: Property Price Index – Residential
SINGAPORE PROPERTY MARKET Property Price Index – Residential (2003 – 1H 2008) All Residential 200 Q2 08 177.5 180 160 140 120 100 80 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 03 03 03 03 04 04 04 04 05 05 05 05 06 06 06 06 07 07 07 07 08 08 Source : URA, 2Q 2008
Slide 22: New Private Residential Units Launched vs Units Sold
SINGAPORE PROPERTY MARKET No. of New Private Residential Units Launched vs Units Sold (Projects under Construction) (2003 – 1H 2008) New Units Launched New Units Sold (Projects Under Construction) 14,000 12,000 New Units New Units Launched Sold (Uncompleted) 10,000 2003 5,216 4,497 8,000 2004 5,881
Slide 23: Uncompleted Private Residential Units Available
SINGAPORE PROPERTY MARKET No. of Uncompleted Private Residential Units Available (2003 – 1H 2008) Not Launched 20000 Launched & Unsold Launched Not Total & Unsold Launched 15,836 16000 15,191 14,718 2003 4,722 9,996 14,718 Number of Units 2004 4,639 11,197 15,836 12000 10,277 9,480 9,162 2005 2,949
Slide 24: Property Price Index – Commercial
SINGAPORE PROPERTY MARKET Property Price Index – Commercial (2003 – 1H 2008) 140 Q2 08 120.5 120 Q2 08 100 118.5 Index 80 60 Office 40 Shop 20 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 03 03 03 03 04 04 04 04 05 05 05 05 06 06 06 06 07 07 07 07 08 08 Source : URA, 2Q 2008
Slide 25: Average Office Rental in CBD
SINGAPORE PROPERTY MARKET Average Office Rental in CBD (2003 – 1H 2008) 20 $18.35 18 $16.00 16 14 Raffles Place $psf/month 12 $10.75 Non CBD-Core $9.60 $9.85 10 8 $5.90 $5.70 6 $3.35 4 2 0 2003 2004 2005 2006 2007 1H 2008 Source : JLL Research, 2Q 2008
Slide 26: Average Prime Level Retail Rental
SINGAPORE PROPERTY MARKET Average Prime Level Retail Rental (2003 – 1H 2008) 35 $30.55 $30.90 $29.85 30 25 $21.65 $21.50 $psf/month $21.05 20 15 Primary Area 10 (Orchard Road) Suburban Area 5 0 2003 2004 2005 2006 2007 1H 2008 Source : JLL Research, 2Q 2008
Slide 27: Property Price Index – Industrial
SINGAPORE PROPERTY MARKET Property Price Index – Industrial (2003 – 1H 2008) Q2 08 120 114.2 100 Q2 08 112.7 80 60 40 Warehouse 20 Factory 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 03 03 03 03 04 04 04 04 05 05 05 05 06 06 06 06 07 07 07 07 08 08 Source : URA, 2Q 2008
Slide 28: Average Private Industrial Space Rental
SINGAPORE PROPERTY MARKET Average Private Industrial Space Rental (2003 – 1H 2008) $2.15 $1.90 $1.85 $1.90 $psf/month $1.65 $1.40 $1.30 $1.40 $1.30 First storey Upper storey $1.15 $0.90 $0.90 $0.65 2003 2004 2005 2006 2007 1H 2008 Source : JLL Research, 2Q 2008
Slide 29: Market Outlook
MARKET OUTLOOK •Artist’s Impression of Wilkie Studio
Slide 30: Singapore Economic Outlook
MARKET OUTLOOK Singapore Economic Outlook • GDP growth in Q2 2008 dropped to 2.1% (Q2 2007: 9.1%) • GDP growth forecast for 2008 revised downwards to between 4% and 5% from earlier range of 4% and 6% • Major economies are experiencing a slow-down in economic activity and Singapore is not spared thes
Slide 31: Property Market – Residential
MARKET OUTLOOK Property Market – Residential • Singapore property market in Q2 2008 continued to be subdued • Total turnover for the industry for 1H 2008 was 2,147 units, a far cry from the record turnover of 9,385 units in 1H 2007 • Nevertheless, transactions in Q2 performed better with 94% increas
Slide 32: Property Market – Office
MARKET OUTLOOK Property Market – Office • Although rental increase has moderated, the office sector continues to remain steady, with 6.3% increase in overall rentals in Q2 2008 • Even if there should be no growth or a decline in rental rates from its peak, the renewed leases will still be much highe
Slide 33: Disclaimer
Disclaimer: This document may contain forward-looking statements that involve assumptions, risks and uncertainties. Actual future performance, outcomes and results may differ materially from those expressed in forward-looking statements as a result of a number of risks, uncertainties and assumptions
Slide 34: Thank You
THANK YOU * Artist’s Impression of Palais Renaissance