Slide 1: Full Year Financial Report 1 Jan – 31 Dec 2007
Full Year Financial Report 1 Jan – 31 Dec 2007 28 February 2008
Slide 2: Presentation Outline
Presentation Outline Financial Highlights Singapore Property Market Operations Review Market Outlook Moving Forward St. Regis Hotel & Residences Singapore
Slide 3: Financial Highlights
Financial Highlights
Slide 4: Financial Highlights
Financial Highlights % 2006 2007 Change Revenue ($m) 2,547 3,106 22.0 Profit before tax ($m) 692 955 38.0 Gains on 4 Hotels disposed off to CDLHT ($m) (151) NA NM 541 955 77.0 PATMI ($m) 352 725 106.0 Taking Into Account Fair Value Gains on Investment Properties – FRS 40 ($m) NA 2,114 NM 352 2,839 7
Slide 5: Revenue
Revenue $ million 3,500 Record Record Year! Year! 3,106 3,000 2,547 2,500 2,380 2,374 2,289 2,326 2,227 2,000 1,500 2001 2002 2003 2004 2005 2006 2007 Year Note : The above financial information is extracted from yearly announcements.
Slide 6: Group Revenue by Segment
Group Revenue by Segment 2006 2007 % $m $m Change Property Development 485 862 78 Hotel Operations 1,846 1,987 8 Rental Properties 168 201 20 Others 48 56 17 Total 2,547 3,106 Overall Increase = 22%
Slide 7: Profit After Tax & MI
Profit After Tax & MI Includingfair Including fairvalue valuegains gains oninvestment on investmentproperties properties (FRS40) (FRS 40)between between2006 2006and and $ million 2007(not 2007 (notNet NetBook BookValue) Value) 2,839 3,000 2,500 2,000 Record Record 1,500 Year! Year! 1,000 ** 725 500
Slide 8: Segment Analysis
Segment Analysis FY 2007 FY 2006 FY 2005 Revenue by Segment Property Development Hotel Operations 861.8 Rental Properties Others $M (28%) 485.0 (19%) 365.0 45.9 (15%) 56.3 47.3 (2%) (2%) (2%) 201.5 168.1 160.1 (6%) (7%) (7%) 1,986.5 1,803.3 (64%) 1,846.4 (76%) (72%) $3,106.1m $2,546.8m $2,374.3m Pro
Slide 9: Profit by Segment
Profit by Segment (Before Tax) 2006 2007 % $m $m Change Property Development 226 506 124 Hotel Operations 396 286 (28) 16% (1) Rental Properties 30 134 347 Others 40 29 (28) Total 692 955 Overall Increase = 38% (1) Excluding the one-off gain on sale of long leasehold in four Singapore hotels to CDL
Slide 10: Net Borrowings
Net Borrowings As at 31/12/06 As at 31/12/07 Incr/(Decr) % CDL Group Total Net Borrowings $2,579m $3,327m 29 Interest Cover Ratio 7.9 x 10.5 x 33 Average Interest Rate of 3.90% to 5.19% 3.54% to 4.94% Borrowings
Slide 11: Net Gearing
Net Gearing CDL’s Net Gearing (%) (2003 – 2007) (exclude fair value gains on investment properties) 75 Net Gearing (%) 65 64 55 54 50 Aftertaking takinginto into After 48 fairvalue fair valuegains gains 45 40 oninvestment investment on properties properties 35 31 25 2003 2004 (restated) 2005 2006
Slide 12: Dividends
Dividends Ordinary Dividend Per Share Year 2007 Year 2004 Year 2005 Year 2006 Special Interim: 10.0 cents Final: 7.5 cents Final: 7.5 cents Final: 7.5 cents Proposed Special Special - Final: 7.5 cents - Interim: - - Interim: 7.5 cents - Special: 12.5 cents - Final: 5.0 cents - Final: 10.0 cents Tota
Slide 13: Singapore Property Market
Singapore Property Market
Slide 14: Property Price Index - Residential (2003 – 2007)
Singapore Property Market Property Price Index - Residential (2003 – 2007) All Residential 313 200 223 Q4 07 180 170.8 160 140 120 100 80 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 03 03 03 0311904 04 04 04 05 05 05 125 05 06 06 06 06 07 07 07 07 34 3 Source : URA, 4Q 2007
Slide 15: New Private Residential Units Launched vs Sold
Singapore Property Market No. of New Private Residential Units Launched vs Units Sold (Projects Under Construction) (2003 – 2007) New Units Launched New Units Sold (Projects Under Construction) 16,000 14,149 14,016 14,000 New Units New Units 12,000 Launched Sold (Uncompleted) Number of Units 10,000
Slide 16: Uncompleted Private Residential Units Available
Singapore Property Market No. of Uncompleted Private Residential Units Available (2003 – 2007) 24000 Not Launched Launched & Unsold 20000 Launched Not Total & Unsold Launched 15,836 Units its 16000 14,718 2002 4,970 10,707 15,677 er ofofUn 2003 4,722 9,996 14,718 Number 12000 10,277 9,480 9,162 2004
Slide 17: Property Price Index - Commercial (2003 – 2007)
Singapore Property Market Property Price Index - Commercial (2003 – 2007) 140 Q4 07 118.4 120 Q4 07 100 114.7 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 03 03 03 03 04 04 04 04 05 05 05 05 06 06 06 06 07 07 07 07 Source : URA, 4Q 2007
Slide 18: Average Office Rental in CBD
Singapore Property Market Average Office Rental in CBD (2003 – 2007) 18 16 $16.00 14 Raffles Place $9.60 $psf/month 12 $9.85 10 Non CBD-Core 8 $5.90 $5.70 6 $3.35 4 2 0 2003 2004 2005 2006 2007 Source : JLL Research, 4Q 2007
Slide 19: Average Prime Level Retail Rental
Singapore Property Market Average Prime Level Retail Rental (2003 – 2007) 35 $29.85 $30.55 $28.80 30 25 $21.50 $psf/month $20.25 $21.05 20 15 Primary Area 10 (Orchard Road) Suburban Area 5 0 2003 2004 2005 2006 2007 Source : JLL Research, 4Q 2007
Slide 20: Operations Review
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Slide 21: Property Development
Property Development (Units Booked / Sold) Sales Value* No. of Total $’000 Units* Floor Area (sq ft) 2007 $3,380,052 1,655 2,363,470 2006 $2,765,344 1,337 2,161,042 Sales value of units sold/booked in FY 2007 increased by 22% * Includes share of JV partners
Slide 22: New Residential Project Launches: Shelford Suites
Operations Review New Residential Project Launches for 1H 2008 Shelford Suites Shelford Road 77 units Artist’s impression
Slide 23: New Residential Project Launches: Former Lock Cho Apartments
Operations Review New Residential Project Launches for 1H 2008 Former Lock Cho Apartments Jalan Datoh/ Jalan Raja Udang (Off Thomson Road) 336 units Artist’s impression
Slide 24: New Residential Project Launches: The Quayside Isle
Operations Review New Residential Project Launches for 1H 2008 Artist’s impression The Quayside Isle @ Sentosa Cove Sentosa Cove 228 units
Slide 25: New Residential Project Launches for 1H 08
Operations Review New Residential Project Launches for 1H 2008 Projects Units Shelford Suites (Total 77) 77 Former Lock Cho Apartments (Total 336) 100 The Quayside Isle @ Sentosa Cove (Total 228) 100 Pasir Ris Parcel 1 (Total 724) 150 Total 427
Slide 26: Land Bank – Acquisitions in 2007
Operations Review Land Bank – Acquisitions in 2007 • Approximately $1.345 billion (including the Group’s share of JV projects). • The largest acquisition was South Beach, a highly- coveted site at the Civic District. • CDL-led international consortium was awarded the 1.6 million square feet GFA site
Slide 27: Land Bank by Sector
Operations Review Land Bank by Sector (As at 1 January 2008) Type of Development Land Area (sq ft) % Residential (Local & Overseas) 3,346,302 74 Commercial / Hotel 739,597 16 Industrial 462,818 10 TOTAL 4,548,717 100 Residential (Overseas) 7% Industrial 10% Residential (Local) 67% Commercial/ Hotel
Slide 28: Rental Revenue by Sector (2006 vs 2007)
Operations Review Rental Revenue by Sector (2006 vs 2007) $201m 200 $168m Rental Revenue ($m) 180 160 Office 140 128 Retail 120 106 Industrial 100 Others* 80 60 33 28 40 8 7 20 27 32 0 2006 2007 * Including car park, serviced apartment and residential
Slide 29: Hotel Revenue by Region
Hotel Revenue by Region 2006 2007 29% 31% 542 621 7% New Zealand/Australia 7% 131 136 Europe/Middle East * United States 643 657 530 573 Asia 29% 35% 29% 33% $1,846m $1,987m Overall change = Ç8% * Middle East : Year 2007 : $5m, Year 2006: NIL
Slide 30: Office Space Demand & Supply
Operations Review Office Space Demand & Supply (2003 – 2007) Private & Public Sector Cumulative Supply Occupancy 75,000 70,220 69,890 69,590 70,280 70,224 70,000 63,040 65,098 65,000 60,680 Square Feet (‘000) 58,710 60,000 57,650 92.0% 55,000 CDL’s Office CDL’s Office Properties Properties 50,000 Av
Slide 31: Hotel Occupancy by Region
Hotel Occupancy by Region 90.0 79.4 77.8 80.0 76.2 76.9 Hotel Occupancy Rate (%) 71.7 71.2 69.5 68.9 70.0 60.0 2006 50.0 2007 40.0 30.0 Asia United States Europe New Zealand / Australia
Slide 32: Hotel RevPAR
Hotel REVPAR (Revenue per available room) 210 200 187 190 168 170 153 146 Hotel RevPAR ($) 150 128 130 2006 * 110 86 89 2007 90 70 50 30 Asia United States Europe New Zealand / Australia * For comparability, the year 2006 RevPAR has been translated at constant exchange rates (31 Dec 2007).
Slide 33: Market Outlook
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Slide 34: Singapore Economic Outlook
Market Outlook Singapore Economic Outlook • Singapore economy grew robustly in 2007 with GDP growth of 7.7% • Construction sector grew by a hefty 46% with volume of contracts awarded hitting $24.5 billion • Singapore’s GDP growth forecast for 2008 revised downwards to between 4% and 6% due to extern
Slide 35: Singapore Economic Outlook
Market Outlook Singapore Economic Outlook • Depending on when the global economy stabilises, the Singapore property market will likely remain subdued • However, Singapore has strong fundamentals with forward- looking strategies • Singapore is in the global limelight with two Integrated Resorts, high
Slide 36: Property Market - Residential
Market Outlook Property Market - Residential • Residential property price index increased by 31.2% in 2007 • Transaction volume for the primary market achieved a new record with 14,811 units sold • However, in Q4, the sub-prime issue has affected the Singapore property market with subdued sentiments
Slide 37: Property Market - Office Rentals
Market Outlook Property Market - Office Rentals • Office sector was extremely robust in 2007 • Islandwide, occupancy improved from 89.7% in 2006 to 92.7% in 2007 • Strong demand and limited supply led to a steep rental increase of more than 50% for 2007 • Potential supply may be delayed as there is
Slide 38: Moving Forward
Moving Forward
Slide 39: Moving Forward: Residential
Moving Forward Residential • Locked-in better-than-expected profits having pre-sold properties • Profits will continue to be recognised progressively based on construction progress • Gearing is relatively low. Financially, it can afford to pace or delay launches depending on market conditions Shelfo
Slide 40: Moving Forward: Office Rentals
Moving Forward Office Rentals • As one of the biggest landlords in Singapore, CDL will benefit from the office crunch and pent-up demand • Key tenant leases are up for renewal • Expediting the development of Tampines Grande commercial plot to tap on the strong demand for office space outside the CBD
Slide 41: Moving Forward: Hotel
Moving Forward Hotel • Over 110 hotels in 18 countries with more than 26,000 rooms Rooms USA: 7,771 Europe: 5,560 Middle East: 1,528 Asia: 7,713 New Zealand: 3,618 • Twin strategy of being both a hotel owner and operator - Cash generation capabilities - Capitalises on hotel assets over time Extracti
Slide 42: Moving Forward: Hotel
Moving Forward Hotel • M&C’s hotels are well spread-out geographically with well-distributed revenue stream • M&C has a robust balance sheet, strong asset position and low debt to capitalise on new opportunities under current economic climate Millennium Hotel Paris Opera Millennium Biltmore Los Ange
Slide 43: Moving Forward: Hotel – New Hotels Opened in 2007
Moving Forward Hotel • 4 new hotels opened in 2007 Millennium Oyoun Sharm El Sheikh Hotel, Egypt Millennium Resort Hotel Patong, Phuket Grand Millennium Sukhumvit Bangkok Millennium Hotel Doha, Qatar
Slide 44: Moving Forward: Hotel – Opening Soon
Moving Forward Hotel – Opening Soon Copthorne Hotel Sheffield at Sheffield Football Club Grand Millennium Beijing – opening April 2008 – opening November 2008 Millennium Chengdu – Millennium Wuxi – opening 2008 opening 2008 All visuals are artist’s impressions
Slide 45: Moving Forward: Hotel - Singapore
Moving Forward Hotel - Singapore • Hospitality in Singapore is performing strongly • Anticipates the next wave of growth to be 2011 when the two IRs are open and operating successfully The St. Regis Singapore M Hotel, Singapore
Slide 46: 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 47: Slide 47
Slide 48: A Pioneer in CSR
A Pioneer in CSR A long-standing commitment to CSR Our CSR Commitment is integral to our Corporate Mission: To be a responsible corporate citizen who creates value for stakeholders, conduct sustainable business practices, cares for the community and protects the environment. CSR Recognition: • Presi
Slide 49: A Pioneer in CSR
A Pioneer in CSR CDL – A Forerunner in CSR • Pioneering CSR for over a decade • An engaged workforce - Staff Volunteerism through City Sunshine Club • Long-term sustainable initiatives/programmes in 4 core areas: 1) Charity 2) Youth development 3) The Arts 4) Environment
Slide 50: A Pioneer in CSR
A Pioneer in CSR In recognition of CDL’s environmentally-sustainable practices Received 10 awards at the BCA Awards 2007, including two Green Mark Platinum Awards. This is the highest recognition given to a developer in BCA Green Mark Platinum recognition of exemplary green projects and CDL is the f