Contents Financial Performance Financial Performance Operations - - PDF document

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1Q 2010 Results

20 April 2010

Contents

• Financial Performance

Financial Performance

• Operations Review
• Market Outlook

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• Going Forward

2 Stronger Earnings

 Net profit up 75.3% y‐o‐y to $64.7m  Annualised ROE up 25% y‐o‐y to 7.5%

Highlights

Robust Sales

p y y  Good take‐up for Reflections at Keppel Bay  Strong sales for township project in China  Acquired waterfront township and ill i i HCMC Vi

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Selective Acquisitions

villa sites in HCMC, Vietnam  K‐REIT Asia took 50% stake in Brisbane

• ffice building

 Alpha’s fund acquired 77% stake in Katong Mall, Singapore

Financial Performance

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Financial Performance –1Q2010 vs. 1Q2009

Net Profit up by 75.3% y‐o‐y

1Q 2010 1Q 2009 % Chg Turnover

$158.8m $145.7m 9

EBITDA

$48.7m $34.3m 42

Operating Profit

$46.4m $31.9m 45.5

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Pre‐tax Profit

$88.7m $55.7m 59.2

Net Profit

$64.7m $36.9m 75.3

Key Financial Ratios

Gearing down by 53.8% y‐o‐y

1Q 2010 1Q 2009 % Chg EPS 4.5 cts 3.6 cts* 25 Annualised ROE 7.5% 6% 25 /

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Net Debt/Equity Ratio 0.24x 0.52x (53.8) NTA/Share $2.43# $3.50 (30.6)

* Restated to include the effect of the 9‐for‐10 rights issue in 2009 # Lower due to the effect of the rights issue

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Breakdown of Net Profit – Business Segment

Business Segment 1Q 2010 1Q 2009 % Chg Comments Property Trading $48.7m $31.7m 53.6

Higher due mainly to increased contributions from Reflections and Caribbean at Keppel Bay, and Marina Bay Suites in Singapore

Property Investment $12.4m $9.6m 29.2

Higher due mainly to improved earnings of K‐REIT Asia

Fund Management $7.4m $4.6m 60.9

Higher due to higher fee income from Alpha and K‐REIT Asia Management

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Hotels / Resorts $0.1m $0.1m ‐ Others ($3.9m) ($9.1m) nm

Improved as a result of the write back of cost over‐provision

Total $64.7m $36.9m 75.3 Geographical Location 1Q 2010 1Q 2009 Comments

Breakdown of Net Profit ‐ Geographical Location

Location Singapore $44.2m 68.3% $27.5m 74.5%

Higher due mainly to higher trading profits, rental income and fee income

Overseas $20.5m 31.7% $9.4m 25.5%

Higher due mainly to increased profit contribution from China

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Total $64.7m 100% $36.9m 100%

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Project % of Sales % of Completion Profit Recognised in 1Q 2010

Notes on Profit Recognition

Caribbean at Keppel Bay (168 remaining units) 97.7% 100% $8.8m Reflections at Keppel Bay (1,129 units) 57.1% 42.4% $7.9m Marina Bay Residences (428 units) 100% 91.2% $6.8m Marina Bay Suites (221 units) 39.2% 18.5% $6.4m The Arcadia, Tianjin (168 units) 54.2% 100% $7m Villa Riviera Shanghai (168 units)

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Villa Riviera, Shanghai (168 units) Phase 1 (42 units) 100% 100% $3.2m Phase 2 (46 units) 74.9% 99.9% Phase 3 (80 units) 98.7% 95.6%

1Q 2010 1Q 2009 N D b $0 93 b $1 55 b

Healthy Balance Sheet

Net Debt $0.93 bn $1.55 bn Avg Interest Rate of Borrowings 2.15% 2.44% % Fixed Rate Debt 34% 17% Avg Debt Maturity 2.34 years 1.32 years

(1)

Interest Cover Ratio

(1)

15.7x 6.11x

(1) Interest Cover Ratio = Profit Before Net Interest and Tax Net Interest Cost Expensed and Capitalised

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Loan Maturity Profile

24% Due in 2010 6% 22% 19% 18% Due in 2015 Due in 2013 Due in 2012 Due in 2011

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11% 6% Rolling Due in 2015

Total Debt : $1.7 bn

Financial Management

• Diversified Funding Base
• Strong cash position : $0.8 billion as at end‐Mar 2010

Strong cash position : $0.8 billion as at end Mar 2010

• Funds from operations and related companies
• Credit facilities and MTN programme (unutilised :US$456m)
• Prudent Debt Management
• Refinancing on track with improved debt maturity

W ll d d l h d i fil

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‐ Well‐spread and lengthened maturity profile

• Higher proportion of fixed debt in low interest rate environment

‐ Increased from 26% to 34%

• Low cost of funds : 2.15% as at end‐Mar 2010

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Operations Review

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Singapore

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Singapore Residential

Strong take‐up for new release at Reflections at Keppel Bay

Reflections at Keppel Bay Resorts World Sentosa and Universal Studios

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• Capitalise on the opening of Resorts World Sentosa and Universal Studios
• Total : 1,129 units
• 97% of 760 launched units sold to date(1)

(1) 98% of 740 units launched sold as at end‐Mar 2010

Singapore Commercial – MBFC and OFC

Phase 1 of MBFC fully leased ahead of completion

Marina Bay Financial Centre Ocean Financial

Marina Bay Financial Centre (MBFC) Ocean Financial Centre (OFC)

Marina Bay Financial Centre Centre

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• New take‐up
• Barclays : Additional 250,000 sf
• Prudential : Approx. 37,000 sf
• Overall commitment : 78%
• Phase 1 : 1.6m sf

‐ Towers 1 & 2 : Fully leased*

• Phase 2 : 1.3m sf

‐ Tower 3 : 55%

• Total commitment : 31%
• Total NLA : 850,000 sf
• 4th generation building to rise at former

Ocean Building site

• Completion : Mid‐2011

* Except for a small percentage of space reserved for existing tenants’ expansion

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Singapore Commercial – K‐REIT Asia

275 George Street

• Continued income growth

Stable income growth with selective acquisitions

• Distributable income : Up 13.8% y‐o‐y to $17.8m
• Distribution per unit : 1.33 cents
• Committed occupancy as at 1Q 2010 : 96%
• Average portfolio rent in Mar 2010 : $8.30 psf (1)
• 50% stake in 275 George Street, Grade A
• Enlarged portfolio with quality assets

commercial building, Brisbane’s CBD ‐ Portfolio asset size up from $2.1bn to $2.3bn

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• Low aggregate leverage of 25.2% provides

capacity for acquisitions

(1) The average rental of K‐REIT Asia’s portfolio of properties in Singapore, excluding 275 George Street in Brisbane, Australia

Overseas

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Overseas – China

Strong demand for townships

The Arcadia, Tianjin The Botanica, Chengdu

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Total : 168 units 88% of 115 launched units sold as at end‐Mar 2010 Phase 5 : 1,810 units All 376 launched units sold in first weekend of April

Overseas – Vietnam

Steady demand for quality homes

Riviera Cove, HCMC The Estella, HCMC

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Total : 96 villas 83% of 82 launched units sold as at end‐Mar 2010 Phase 1 : 719 units 61% of 719 units sold as at end‐Mar 2010

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Overseas – India and Indonesia

Continued sales as market sentiment improves

Elita Promenade, Bangalore Elita Garden Vista, Kolkata Jakarta Garden City

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Total : 1,573 units 90% of 1,495 launched units sold as at end‐Mar 2010 Phase 1 : 688 units 65% of 688 units sold as at end‐Mar 2010 Phase 1 : 994 units 77% of 580 launched units sold as at end‐Mar 2010

Fund Management

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Fund Management

Increased AUM with selective acquisitions

• Alpha Investment Partners : Alpha Asia Macro Trends Fund

Total AUM:

Funds under Alpha Committed Equity % Invested

• No. of

Countries Invested In

• Acquired 77% stake in Katong Mall, Singapore
• Actively seeking new acquisitions in core Asia markets
• K‐REIT Asia
• Acquired 50% stake in 275 George Street, Brisbane, Australia

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Alpha Investment Partners : $7.7 bn (1) K‐REIT Asia : $2.3 bn (2)

$10.0 bn

Asia No. 1 Property Fund $400m 100% 4 Alpha Core Plus Real Estate Fund $720m 100% 4 AIB Alpha Japan Fund $259m 46% 1 Alpha Asia Macro Trends Fund $1.7bn 30% 5 (1) When fully leveraged and fully invested (2) Includes asset revaluation, Prudential Tower strata acquisition and 50% stake in 275 George Street, Brisbane, Australia

Awards

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Best Annual Report (Gold) at Singapore Corporate Awards

• Market capitalisation of $1 bn and above

Business Times revised Governance and Transparency Index(1)

• Ranked top 2% out of 681 companies

Awards

FIABCI Indonesia – BNI Prix d’Excellence Award 2009

• Jakarta Garden City – Best Middle Class Residential Development
• Shortlisted to represent Indonesia at the FIABCI World Congress

ISO 14001 certification

• Singapore property development and property management operations
• Property development operations in China and Vietnam

LEED(2) Award

• Ocean Financial Centre – Platinum level LEED‐CS pre‐certification

BCA Green Mark Awards

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• The Promont – Gold
• Marina Bay Suites – Gold
• Sixth Avenue Residences – Gold
• MBFC Phase 2 (Commercial) – Gold Plus
• One Raffles Quay – Gold (First building to achieve Green Mark Award under guidelines for existing devts)
• Riviera Cove, HCMC – Gold
• The Arcadia, Tianjin – Gold
• The Springdale, Shanghai (Plots 1 and 3) – Gold
• Spring City (Residential – La Quinta), Kunming – Gold

(1) Replaced Business Times Corporate Transparency Index (2) Leadership in Energy and Environmental Design

Market Outlook

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Residential

• Strong buying sentiment continues into 2010
• Higher take‐up of more than 4,400 units(1) in 1Q 2010 compared to 2,596 units

sold in 1Q 2009

• Prices continue on uptrend for high‐end segment

Market Outlook – Singapore

• Office market improving along with economic recovery
• Rental bottoming out and office capital values stabilising
• Increase in Grade A office occupancy to 94.5%(2) in 1Q 2010 from 93.8% in 4Q09
• Positive economic growth forecast of 7% to 9% in 2010

Residential

• Prices continue on uptrend for high‐end segment
• Demand continued as government took measures to stabilise the market
• IRs to increase Singapore’s international exposure and foreign buyers

demand

• Expansion plans by financial institutions
• Deferred construction of some office projects and redevelopment of
• ffice buildings to other uses e.g. residential and hotels, help reduce

supply

• Singapore to emerge as a premier gateway city in the region with focus
• n key sectors such as bio‐medical and financial services

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Office

(1) URA (2) CBRE

Market Outlook – Overseas

• Asia : Demand backed by rising home ownership aspirations

Home

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Economic Growth Favourable Demographics Growing Middle Class Rising Affluence Urbanisation Trends Home Ownership Aspirations

• China : Government closely monitoring market and implement measures

to curb overheating

• Vietnam : Pent‐up demand for quality landed homes and mid‐end

segment shows signs of recovery

• India : Prices bottoming out and property market recovering well

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Going Forward

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Going Forward

• Seek acquisitions in Singapore and overseas with

Seek acquisitions in Singapore and overseas with continued focus on developing quality residential, office and township projects

• K‐REIT Asia and Alpha to seek acquisitions of quality

assets in Singapore and overseas

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• Unlock value from non‐core assets at appropriate time

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Singapore Residential

• Capitalise on opening of Marina Bay Sands to launch Marina Bay Suites

Continue to time launches and seek selective acquisitions

• Leverage on positive sentiments to launch remaining phases of Reflections at Keppel Bay
• Remaining 3 plots of land at Keppel Bay to be launched according to market demand
• Continue to seek acquisition of new sites

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Marina Bay Suites Reflections at Keppel Bay

Singapore Office

Flight to quality to continue

R ili t i l tf li

• Resilient commercial portfolio
• MBFC and OFC to benefit from

fight to quality with new Grade A

• ffice buildings
• Prime location close to major

MRT stations and expressways

32 Properties held under K‐REIT Asia : Keppel Towers & GE Tower, Bugis Junction Towers, Prudential Tower(73.4% interest) and One Raffles Quay (1/3 interest)

• Continue to attract more pre‐

completion commitments and new tenants for existing buildings

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Overseas Residential – China

The Botanica, Chengdu

Tap on robust demand for townships to launch more units

Central Park City, Wuxi

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Phase 5 launch : 1,810 units in 2Q 2010

• Capitalise on strong sales of 376 units sold in

first weekend of April to launch more units

Over 4,500 units sold over four phases since launched in 2005 Phase 2 : 1,627 units Stage 1 of Phase 2 launch :

• 342 units in 2Q 2010

Capitalise on forthcoming relocation of the municipal offices and proximity to MRT station

Overseas Residential – China

The Springdale, Shanghai

Launch new project and phase of 8 Park Avenue in Shanghai

8 Park Avenue, Shanghai

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Total : 2,667 units Launch : Phase 1 (180 units) in 2Q 2010 Nanhui designated as part of Pudong Close to World Expo 2010 and Disneyland Total : 260 units (2 blocks) Launch : 2H 2010 Located at prime Jingan District and entertainment shopping belt

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Overseas Residential ‐ China

Keppel’s 35.4 ha site in SUA of Tianjin Eco‐City

Launch first residential project at Tianjin Eco‐City

• Total : 4,995 homes plus office and retail
• Commenced development for Phase 1 residential :
• Total : 1,678 units
• Launch : 2H 2010
• Shareholding structure :
• KLL : 55%, KCL : 45%

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Tianjin Eco‐City Entire Development Start‐up Area (SUA)

Size 30 sq km 4 sq km Development period 10‐15 years 3‐5 years

• No. of homes

> 100,000 >20,000 Population (approx.) 350,000 85,000

Overseas Residential – Vietnam

Expect to launch Riviera Point in HCMC

Riviera Point Riviera Point

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• Riviera Point, District 7 in HCMC
• Opposite to the established Phu My Hung township and commercial area
• Total site area : About 9‐ha
• Total : 2,400 waterfront condos
• Launch : 2H 2010
• Continue to sell new phases of The Estella and Riviera Cove

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Thank You

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Additional Slides

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Singapore Residential Landbank

Attributable Attributable Land Area GFA (%) (sf) (sf) Reflections at Keppel Bay Keppel Bay 30% 99‐yr 269,930 624,521 392 Marina Bay Suites Marina Bay 33.3% 99‐yr 19,015 156,462 129 Keppel Bay Plot 3 Keppel Bay 30% 99‐yr 125,366 152,999 307 Keppel Bay Plot 4 Keppel Bay 11.7% 99‐yr 36,114 40,300 234 Keppel Bay Plot 6 Keppel Bay 30% 99‐yr 141,429 67,813 94 Total 591,854 1,042,095 1,156 Remaining Units Project Location KLL's Stake Tenure

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China Residential Launches

Units to Launch 2010 2011 2012

8 Park Avenue, Shanghai(1) 260 134 ‐ Villa Riviera, Shanghai(1) 7 ‐ ‐ The Botanica, Chengdu(1) 742 1,743 1,500 The Arcadia, Tianjin(1) 67 ‐ ‐ Central Park City, Wuxi(1) 877 750 630 The Seasons, Shenyang(2) 270 420 1,293 Waterfront Township Devt, Shenyang(2) ‐ 587 588 The Springdale, Shanghai(2) 666 476 929 Integrated Marina Lifestyle Devt, Zhongshan(2) ‐ 200 342 Stamford City, Jiangyin(1) 183 368 324 Serenity Cove, Tianjin (Ph 3)(1) 139 100 101 Tianjin Eco‐City (35.4 ha within SUA)(2) 888 894 1,284

Total 4,099 5,672 6,991

(1) Balance units (2) New launches

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Other Overseas Residential Launches

Units to launch 2010 2011 2012

Vietnam The Estella, Dist. 2, HCMC (1) 141 145 300 Riviera Point, Dist. 7, HCMC (2) 300 400 368

(2)

Prime Condo, Dist. 2, HCMC (2) ‐ ‐ 350 Riviera Cove (Villa Devt.), Dist. 9, HCMC (1) 28 ‐ ‐ Saigon Sports City, HCMC (2) ‐ ‐ 355 Dong Nai Waterfront City (2) ‐ ‐ 100 South Rach Chiec, Dist 2, HCMC(2) ‐ 300 400 Riviera Garden, Dist 12, HCMC (2) ‐ 87 87 Thailand Villa Arcadia at Srinakarin, Bangkok (1) 41 50 50 Villa Arcadia at Watcharapol, Bangkok (1) 28 30 30 India Elit P d B l

(1)

93 139 Elita Promenade, Bangalore (1) 93 139 ‐ Elita Horizon, Bangalore (2) ‐ 187 400 Elita Garden Vista, Kolkata (1) 149 244 233 Indonesia Jakarta Garden City (1) 164 373 1,021 Middle East Al Mada Towers, Jeddah, Saudi Arabia (2) 350 300 300

Total 1,294 2,255 3,994

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(1) Balance units (2) New launches

China Residential Landbank

Site Location KLL's Stake Total Land Area Total GFA Remaining Area Remaining Units (%) (sm) (sm) For Sale (sm) For Sale 8 Park Avenue Shanghai 99% 33 432 133 393 65 233 394 8 Park Avenue Shanghai 99% 33,432 133,393 65,233 394 Park Avenue Central Shanghai 99% 28,488 99,708 99,708 708 Villa Riviera Shanghai 99% 153,726 53,796 4,117 7 The Arcadia Tianjin 100% 127,970 74,826 33,808 67 Central Park City Wuxi 49.7% 352,534 670,510 (2) 415,605 (1) 3,537 The Botanica Chengdu 44.1% 419,775 1,042,846 (1) 479,592 (1) 4,961 Stamford City Jiangyin 83.3% 82,987 314,507 (2) 246,549 (2) 871 The Seasons Shenyang 100% 348,312 496,265 487,032 4,748 Waterfront Township Devt Shenyang 100% 302,681 756,580 (2) 756,580 (2) 5,695 The Springdale Shanghai 99% 264,090 328,792 (2) 318,521 (1) 2,667

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(1) Excludes commercial area (2) Includes commercial area Integrated Marina Lifestyle Devt Zhongshan 80% 881,638 432,003 427,683 2,855 Serenity Cove P3 Tianjin 100% 128,685 80,000 79,800 340 Tianjin Eco‐City (35.4 ha within SUA) Tianjin 55% 354,174 684,500 684,500 4,995 Mixed Devt Tianjin 100% 1,666,665 1,358,199 1,358,199 8,664 Total 5,145,157 6,525,925 5,456,927 40,509

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Other Overseas Residential Landbank

Country Site KLL's Total Land Area Total GFA Remaining Area for Sale Remaining Units for Sale Stake (sm) (sm) (sm) India Elita Promenade , Bangalore 51% 96,618 237,446 36,261 232 Elita Horizon, Bangalore 51% 79,177 150,680 150,680 1,138 Elita Garden Vista Kolkata 37 74% 93 998 195 380 130 561 831 Elita Garden Vista, Kolkata 37.74% 93,998 195,380 130,561 831 Sub‐Total 269,793 583,506 317,502 2201 Indonesia Jakarta Garden City ‐ LH phase 1 51% 143,990 148,839 81,550 549 ‐ LH remaining phases 827,914 999,890 999,890 7,403 Sub‐Total 971,904 1,148,729 1,081,440 7,952 Thailand Villa Arcadia at Srinakarin 45.5% 159,706 84,440 68,777 216 Villa Arcadia at Watcharapol 66.7% 124,912 68,314 80,614 255 Sub‐Total 284,618 152,754 149,391 471 Vietnam Saigon Sports City, HCMC 90% 640,477 688,180(2) 298,786 (1) 2,318 The Estella, HCMC 55% 47,906 279,851(2) 147,159 (1) 956 Riviera Point (Bridge‐site), Dist. 7, HCMC 75% 89,712 447,079(2) 293,676 (1) 2,400 Dong Nai Waterfront City, Dong Nai Province 50% 3,667,127 1,979,727(2) 1,802,771 (1) 10,156 Prime (Condo), Dist. 2, HCMC 60% 51,000 244,800(2) 166,464 (1) 1,500 Ri i C (Vill ) Di 9 HCMC 60% 97 000 34 711 21 190 28 43

(1) Excludes commercial area (2) Includes commercial area

Riviera Cove(Villa), Dist. 9, HCMC 60% 97,000 34,711 21,190 28 South Rach Chiec, Dist 2, HCMC 42% 300,000 995,000(2) 641,750 (1) 4,700 Riviera Garden,Dist. 12, HCMC 60% 113,098 40,715 56,549 174 Sub‐Total 5,006,320 4,710,063 3,428,345 22,232 Middle East Al Mada Towers, Jeddah, Saudi Arabia 51% 36,236 253,652 253,652 993 Sub‐Total 36,236 253,652 253,652 993 Philippines Palmdale Heights(Ph2), Manila 30.9% 15,976 62,751 62,751 1,264 SM‐KL Residential Devt. Manila 24.2% 7,068 56,000 56,000 430 Sub‐Total 23,044 118,751 118,751 1,694 Total 6,591,915 6,967,455 5,349,081 35,543

Geographical Breakdown

Asset Allocation – By Geographical Location (31 March 2010) Net Profit – By Geographical Location (31 March 2010)

China 17% Indonesia 8% Vietnam 9% India 1% Others 4% China 21% Vietnam 5% India 3% Others 3% Singapore 61% 17% Singapore 68%

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Singapore Commercial

Tenant Business Sector by Net Lettable Area as at 31 March 2010

Diverse tenant mix reduces exposure to specific sector

Accounting & consultancy services, 3.2% Banking, insurance & financial services, 16.6% Conglomerate, 9.4% Services, 15.9% Shipping & marine services, 5.6% Others, 8.0% Electronic & electrical, 11.1% Government agency, 0.5% Hospitality & leisure, 8.1% IT Services & consultancy, 6.7% Petrochemical, 10.0% Pharmaceuticals & healthcare, 0.9% Real estate & property services, 3.9%

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Overseas – China

Sino‐Singapore Tianjin Eco‐City

• Sale of 10% interests in Singapore Tianjin Eco‐City to Singbridge

g p j y g g International Singapore(1)

Tianjin Eco-City shareholding structure(2) :

45% 35% 20% Keppel Integrated Engineering Keppel Integrated Engineering Keppel Corporation Keppel Corporation Keppel Land Keppel Land Singbridge Int’l S’pore Singbridge Int’l S’pore 90% 10%

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(1) A wholly‐owned subsidiary of Temasek Holdings Ltd (2) Summarised graphical representation and not the legal representation of the shareholding structure

Tianjin Eco-City (JV)

50% 50% Registered Capital : RMB 4 billion Singapore Consortium Chinese Consortium

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This release may contain statements which are subject to risks and uncertainties that could cause actual results to differ materially from such statements. You are cautioned not to place undue reliance on such statements, which are based on the current views of Management on future developments and events.

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