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HIAP HOE LIMITED HIAP HOE LIMITED Investor Presentation Investor Presentation 14 August 2013 14 August 2013 1 Importance Notice This presentation and the information contained herein does not constitute or form any part of any offer or invitation


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Investor Presentation Investor Presentation

14 August 2013 14 August 2013

HIAP HOE LIMITED HIAP HOE LIMITED

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Importance Notice

This presentation and the information contained herein does not constitute or form any part of any offer or invitation to sell or issue, or any solicitation of any offer to subscribe for or purchase any securities of Hiap Hoe Limited (the “Company”) or any of its subsidiaries, associated companies or joint ventures (collectively with the Company, the “Group”) in any jurisdiction or an inducement to enter into investment activity and nothing contained herein shall form the basis of or be relied upon in connection with any contract or commitment whatsoever. This presentation is being furnished to you solely for your information and may not be reproduced or redistributed to any other person or published, in whole or in part, for any purpose. No representation or warranty, express or implied, of any nature is given as to, and no reliance should be placed on, the fairness, correctness, accuracy or completeness of the information or opinions contained herein. This presentation is being communicated only to persons who have professional experience in matters relating to investments and to persons to whom it may be lawful to communicate it to (all such persons being referred to as "relevant persons"). This presentation is

  • nly directed at relevant persons. Solicitations resulting from this presentation will only be responded to if the person concerned is a relevant person. Other

persons should not rely or act upon this presentation or any of its contents. The information and opinions in this presentation are provided as at the date of this presentation and are subject to change without notice. No assurance is made as to the accuracy of this presentation and it may be incomplete or condensed and it may not contain all material information concerning the Company or the Group. The information in this presentation is not financial product advice and does not take into consideration the investment objectives, financial situation or particular needs of any particular person. Any forward‐ looking statement in this presentation is accurate only as of the date hereof, and there is no obligation to update, modify or amend this communication or to otherwise notify the recipient if information, opinions, assumptions, projections, forecasts or estimates set forth therein, changes or subsequently becomes inaccurate. None of the Company, or any member of the Group, or any of their respective affiliates, officers, employees, advisors or representatives shall have any liability whatsoever (in negligence or otherwise) for any loss howsoever arising from any use of or reliance on the information or opinions contained in this presentation. No offering of the Company’s securities will be registered under the U.S. Securities Act of 1933, as amended, or with any securities regulatory authority of any state or other jurisdiction of the United States. Subject to certain exceptions, the Company’s securities may not be offered, sold or delivered within the United States or to, or for the account or benefit of, any U.S. person (as defined in Regulation S under the U.S. Securities Act). Neither this presentation nor any copy of such presentation may be taken or transmitted into the United States or distributed, directly or indirectly, in the United States. The information presented here is not an offer for sale within the United States of any securities of the Company. The distribution of this presentation in certain jurisdictions may be restricted by law and persons into whose possession this presentation comes should inform themselves about, and observe, any such restrictions. By attending this presentation or by accepting this document, you will be taken to have represented, warranted and undertaken that: (i) you are a relevant person (as defined above); (ii) you are not a person located in the United States

  • r any agent, fiduciary or other intermediary acting on a non‐discretionary basis for a principal giving instructions from within the United States or any U.S.

person; (iii) you are bound by the foregoing limitations; and (iv) that any investment in any securities of the Company will be made solely on the basis of the disclosure document prepared by the Company and not on the basis of this presentation. Any failure to comply with these restrictions may constitute a limitation of applicable securities law.

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Company Company Overview

Overview

Business Update Business Update Financial Highlights Financial Highlights Moving Forward Moving Forward

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Overview of Hiap Hoe Limited

Our four core businesses

A premium integrated property developer A premium integrated property developer

Hospitality Hospitality Construction Construction Investments Investments

  • Focused on residential properties in prime and strategic location
  • Over 30 years of track record in developing signature homes
  • Established reputation for high quality developments
  • Focused on

Focused on residential properties in prime and strategic location residential properties in prime and strategic location

  • Over 30 years of track record in developing signature homes

Over 30 years of track record in developing signature homes

  • Established reputation for high quality developments

Established reputation for high quality developments

  • Portfolio comprises two quality assets in Balestier, Singapore,

managed by Wyndham Hotel Mgmt under Ramada and Days brands

  • Focused on expanding portfolio to grow recurring income stream
  • Portfolio comprises two quality assets in Balestier, Singapore,

Portfolio comprises two quality assets in Balestier, Singapore, managed by Wyndham Hotel Mgmt under Ramada and Days brands managed by Wyndham Hotel Mgmt under Ramada and Days brands

  • Focused on expanding portfolio to grow recurring income stream

Focused on expanding portfolio to grow recurring income stream

  • Over 30 years of experience in construction
  • In‐house construction expertise and market knowledge allow for

greater control over cost, quality and delivery

  • Over 30 years of experience in construction

Over 30 years of experience in construction

  • In

In‐ ‐house construction expertise and market knowledge allow for house construction expertise and market knowledge allow for greater control over cost, quality and delivery greater control over cost, quality and delivery

  • Growing investment activities to enlarge and diversify revenue streams
  • Focused on investments with strong fundamentals, acquired at

attractive valuations with good potential for capital appreciation

  • Growing investment activities to enlarge and diversify revenue s

Growing investment activities to enlarge and diversify revenue streams treams

  • Focused on investments with strong fundamentals, acquired at

Focused on investments with strong fundamentals, acquired at attractive valuations with good potential for capital appreciati attractive valuations with good potential for capital appreciation

  • n

Development Projects: ‐Residential ‐Industrial ‐Commercial

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Overview of Hiap Hoe Limited

Key statistics

Steady share price appreciation over past 5 years Steady share price appreciation over past 5 years

Liquidity Statistics

Listed on SGX‐ST Six‐month average daily traded volume: 400,298 shares Estimated Free Float: 28.7% Substantial Shareholder: Hiap Hoe Holdings Pte Ltd , 69.85% Market Cap as at 12 Aug 2013: SGD 347.6 million Source: Bloomberg LLP

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Overview of Hiap Hoe Limited

Leveraging our key strengths

Competitive Advantages Competitive Advantages

Integrated Capabilities Integrated Capabilities Solid Track Record Strong Reputation Solid Track Record Strong Reputation Discipline & Commitment Discipline & Commitment Strong Financials Strong Financials

  • In‐house construction capability and expertise allow for greater

control over cost and quality

  • In‐house sales/leasing team
  • In

In‐ ‐house construction capability and expertise allow for greater house construction capability and expertise allow for greater control over cost and quality control over cost and quality

  • In

In‐ ‐house sales/leasing team house sales/leasing team

  • Renown for developing signature properties
  • Strong reputation for quality products
  • Experienced management team
  • Renown for developing signature properties

Renown for developing signature properties

  • Strong reputation for quality products

Strong reputation for quality products

  • Experienced management team

Experienced management team

  • Disciplined approach in land acquisitions
  • Committed to growing portfolio of quality assets for recurring income
  • Disciplined approach in land acquisitions

Disciplined approach in land acquisitions

  • Committed to growing portfolio of quality assets for recurring i

Committed to growing portfolio of quality assets for recurring income ncome

  • Healthy balance sheet with low gearing
  • Prudent capital management
  • Healthy balance sheet with low gearing

Healthy balance sheet with low gearing

  • Prudent capital management

Prudent capital management

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Management Reporting Structure

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Board of Directors

Teo Ho Beng Teo Ho Beng

Executive Chairman & CEO Executive Chairman & CEO

  • Possesses more than 30 years of experience in the construction and property industries and over 20 years of experience in the leisure

industry

  • Responsible for the formulation of corporate strategies and policies for the Group
  • Monitoring Hiap Hoe’s performance, and oversees management, budgeting and forecasting procedures to ensure prudent financial

management

Teo Ho Kang, Roland Teo Ho Kang, Roland

Managing Director Managing Director

  • Possesses more than 20 years of experience in the property and leisure industries
  • Responsible for overseeing the marketing and promotion of the Group’s properties and their performance
  • Oversees the Group’s product development and business expansion and staff development
  • Holds a Bachelor in Business Administration from the American Intercontinental University

Tracy Wun Tracy Wun

Executive Director Executive Director

  • Possesses more than 15 years of experience in the banking industry in her previous tenure with United Overseas Bank Limited in the

Commercial Lending business with industry specialization in Real Estate & Construction as well as Logistics, Shipping and Oil & Gas industry

  • Responsible for the Group’s investments
  • Graduated from National University of Singapore (Business Administration)
  • Attended Effective Board Leadership Module: Financial Literacy and Governance jointly organized by the Singapore Institute of

Directors and KPMG Singapore, supported by Singapore Exchange.

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Board of Directors (cont’d)

Chan Wah Tiong Chan Wah Tiong

Lead Independent, Non Lead Independent, Non‐ ‐Executive Director Executive Director

  • Extensive financial, accounting and compliance experience, having served as external Auditor, Accountant, Financial Analyst, Financial

Director and CFO of several companies (both local and multinational) in semiconductor, manufacturing, trading, construction and non profit organization

  • Being Certified Public Accountant with the Institute of Certified Public Accountants of Singapore

Chan Boon Hui Chan Boon Hui

Independent, Non Independent, Non‐ ‐Executive Director Executive Director

  • Presently the Managing Director of Chancery Capital Pte Ltd
  • Has more than 15 years of investment banking experience with OCBC Bank, BNP Paribas and the Rothschilds Group in Singapore and New

York

  • Graduated from Cambridge University (UK) with a Master of Arts (Hons)(Law)
  • Chartered Financial Analyst

Kwok Chui Lian Kwok Chui Lian

Independent, Non Independent, Non‐ ‐Executive Director Executive Director

  • Currently the President and CEO of AFC Merchant Bank
  • Possesses almost 20 years experience with OCBC Bank
  • Holds a Bachelor of Arts (Hons) degree in Economics from the City of Birmingham Polytechnic, UK
  • Being a Fellow of The Institute of Chartered Secretaries and Administrators and has attended executive management programs at both

Wharton‐SMU University (General Management Programme in 2004) and The Wharton School at the University of Pennsylvania (The Leadership Journey‐Creating and Developing your leadership in 2006)

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Key Management

Aw Hui Mien, Jenny

  • Has more than 18 years of combined experience in audit,

finance and accounting

  • Worked with KPMG Singapore prior to Hiap Hoe Group
  • A Chartered Accountant Singapore , responsible for the
  • verall financial related matters and accounting functions of

the Group

Teo Poh Sim, Agnes

  • Possesses more than 11 years of experience in human

resource and administration

  • Responsible for formulating the human resource and

administration policies of the Group

  • Oversees the Group payroll, staff welfare and staff

development as well as administration

  • Holds a Bachelor of Arts degree from the Pacific Union

College (USA)

Chew Char Choon Chew Char Choon

  • Has 25 years of experience in the construction industry
  • Responsibilities include implementing the best construction

techniques and ensuring the timely completion and delivery

  • f quality projects
  • Holds a Bachelor of Science in Civil Engineering from South

Dakota State University

Charlotte Tan Charlotte Tan

  • Possesses more than 16 years of project management and

design

  • Oversees the design and planning, project management and

construction, procurement, lease management, sales & marketing for Hiap Hoe Group

  • holds a Bachelor of Applied Science in Construction

Management (Hons) degree

Raymond Low Raymond Low

  • Contributes in the aspects of spearheading designs and

creating new benchmark developments for the Group

  • Practised 12 years with DP Architects Group as Associate

Director

  • Specialised in hospitality, commercial, retail and residential

projects

May Tay May Tay

  • Responsibilities include the leasing of commercial and

residential properties within the Group.

  • Previously with Dairy Farm Group, Mapletree and Jones Lang

LaSalle

  • Holds a Bachelor of Business (Property) degree from

University of South Australia

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Company Overview Company Overview

Business Update Business Update

Financial Highlights Financial Highlights Moving Forward Moving Forward

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Residential Development Residential Development

5/5A Balmoral Road 5/5A Balmoral Road 68 St Thomas Walk 68 St Thomas Walk 1 Lewis Road 1 Lewis Road 45/47 Toh Tuck Road 45/47 Toh Tuck Road 65 Cavenagh Road 65 Cavenagh Road

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  • 36

36‐ ‐storey skyscraper with 61 residences storey skyscraper with 61 residences

  • Tenure

Tenure : Freehold : Freehold

  • Land area

Land area : : ∼ ∼44,003 sq ft 44,003 sq ft

  • GFA

GFA : 123,205 sq ft : 123,205 sq ft

  • land cost

land cost : S$715 psf ppr : S$715 psf ppr

  • No. of units sold
  • No. of units sold

: 49 : 49

  • TOP

TOP : September 2012 : September 2012

Artist Artist’ ’s Impression s Impression 68 St Thomas Walk

Skyline 360 Skyline 360° ° @ St Thomas Walk @ St Thomas Walk

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Signature @ Lewis Signature @ Lewis

  • 12

12‐ ‐storey in prime location with 32 residences storey in prime location with 32 residences

  • Tenure

Tenure : Freehold : Freehold

  • Land area

Land area : : ∼ ∼21 21,679 sq ft ,679 sq ft

  • GFA

GFA : 34,682 sq ft : 34,682 sq ft

  • Land cost

Land cost : S$710 psf ppr : S$710 psf ppr

  • No. of units sold
  • No. of units sold

: 30 : 30

  • Launch

Launch : 2009 : 2009

  • TOP

TOP : October 2011 : October 2011

Artist Artist’ ’s Impression s Impression 1 Lewis Road

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Residential Development Residential Development

Skyline 360O At St Thomas Walk Signature @ Lewis % Sold % Sold 80 80% % 94 94% % Land Cost (psf ppr) Land Cost (psf ppr) S$715 S$715 S$710 S$710 Average Selling Price (psf) Average Selling Price (psf) S$2,078 S$2,078 S$1,364 S$1,364 Highest Price Achieved (psf) Highest Price Achieved (psf) S$2,508 S$2,508 S$1,629 S$1,629

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Waterscape At Cavenagh Waterscape At Cavenagh

  • 4 blocks of 7

4 blocks of 7‐ ‐storey and 2 blocks of 6 storey and 2 blocks of 6‐ ‐storey apartment with resort storey apartment with resort themed with 200 residences themed with 200 residences

  • Tenure

Tenure : Freehold : Freehold

  • Land area

Land area : : ∼ ∼101 101,193 sq ft ,193 sq ft

  • GFA

GFA : 212,514 sq ft : 212,514 sq ft

  • Land cost

Land cost : S$618 psf ppr : S$618 psf ppr

  • No. of units sold
  • No. of units sold

: 150 : 150

  • Launch

Launch : 2010 : 2010

  • Expected TOP

Expected TOP : December 2014 : December 2014

Artist Artist’ ’s Impression s Impression 65, 65A to 65E Cavenagh Road

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Residential Development Residential Development

Waterscape At Cavenagh % Sold % Sold ∼ ∼75% 75% Land Cost (psf ppr) Land Cost (psf ppr) S$618 S$618 Average Selling Price (psf) Average Selling Price (psf) S$1,909 S$1,909 Highest Price Achieved (psf) S$2,173 S$2,173

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The Beverly (Joint Venture) The Beverly (Joint Venture)

  • 2 blocks of 5

2 blocks of 5‐ ‐storey with 118 residences storey with 118 residences

  • Tenure

Tenure : Freehold : Freehold

  • Land area

Land area : : ∼ ∼123 123,958 sq ft ,958 sq ft

  • Equity stake

Equity stake : 60% : 60%

  • GFA

GFA : 173,537 sq ft : 173,537 sq ft

  • Land cost

Land cost : S$442 psf ppr : S$442 psf ppr

  • No. of units sold
  • No. of units sold

: 112 : 112

  • Launch

Launch : 2009 : 2009

  • TOP

TOP : October 2012 : October 2012

45/47 Toh Tuck Road

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  • 12

12‐ ‐storey comprising 48 apartment units storey comprising 48 apartment units

  • Equity stake

Equity stake : 60% : 60%

  • Tenure

Tenure : Freehold : Freehold

  • Land area

Land area : : ∼ ∼46,436 sq ft 46,436 sq ft

  • GFA

GFA : 80,235 sq ft : 80,235 sq ft

  • Land cost

Land cost : S$1,723 psf ppr : S$1,723 psf ppr

  • Expected launch

Expected launch : 2013 : 2013

  • TOP

TOP : November 2012 : November 2012

Artist Artist’ ’s Impression s Impression 5 Balmoral Road

Treasure on Balmoral (Joint Venture) Treasure on Balmoral (Joint Venture)

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Residential Development (Joint Venture) Residential Development (Joint Venture)

The Beverly Treasure

  • n Balmoral

% Sold % Sold 95 95% % ‐ ‐ Land Cost (psf ppr) Land Cost (psf ppr) S$442 S$442 S$1,723 S$1,723 Average Selling Price (psf) Average Selling Price (psf) S$805 S$805 N.A. N.A. Highest Price Achieved (psf) Highest Price Achieved (psf) S$969 S$969 N.A. N.A. Equity Interest Equity Interest 60% 60% 60% 60% Joint Venture Partner Joint Venture Partner SMPL SMPL1

1

SHL SHL2

2

Footnote:‐ 1 – SuperBowl Management Pte Ltd 2 – SuperBowl Holdings Limited

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First Hotel/Commercial Integrated Development First Hotel/Commercial Integrated Development At Zhongshan Park, Singapore At Zhongshan Park, Singapore

Artist Artist’ ’s Impression s Impression

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  • Developed on 99‐yr leasehold site with 190,107 sq ft land area
  • Landmark development preserves rich heritage of Sun Yat Sen Nanyang Memorial Hall along

Balestier, Singapore

  • Two hotels managed by international chain operator, Wyndham Group
  • 4‐star Ramada Singapore features 384 rooms
  • 3‐star Days Hotel features 405 rooms
  • ∼107,486 sq ft of commercial net lettable area, comprising a 13‐storey office block and other retail

/ F&B space. Zhongshan Mall anchor tenants include Fairprice Finest, Crystal Jade Steamboat, Breadtalk, Guardian and Cheers

  • Occupancy rates for Zhongshan Mall and Hiap Hoe Office Tower have reached 91% and 60%,

respectively, as at 30 June 2013

Hotel/Commercial Project Hotel/Commercial Project

Integrated development includes: Integrated development includes:

  • Days Hotel Singapore at Zhongshan Park

Days Hotel Singapore at Zhongshan Park

  • Ramada Singapore at Zhongshan Park

Ramada Singapore at Zhongshan Park

  • Hiap Hoe Office Tower

Hiap Hoe Office Tower

  • Zhongshan Mall

Zhongshan Mall

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On‐going Property Development

Industrial Development At Kallang Pudding Road

Light industrial units : 55 Tenure : Freehold Land area : ∼48,121 sq ft GFA : ∼120,304sq ft Land cost : S$324 psf ppr Expected launch : 2014 TOP : 2016 Proposed New Erection Of A Block Of 9‐Storey Multiple‐User Light Industrial Development

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Foray into Overseas Residential Development

Acquired 6‐22 Pearl River Road, Melbourne, Australia

Possesses approved planning permit for the development of 425 residential units Tenure : Freehold Land area : 3,795 sq m Total land cost : S$33.6 million Group seeks to review approved plans and explore a mixed‐use development with a serviced apartment/hotel component Waterfront site will serve as the Group’s maiden overseas flagship development

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Foray into Overseas Residential Development

Acquired 6‐22 Pearl River Road, Melbourne, Australia

  • The distinctive waterfront

development offers an attractive lifestyle experience: next to Victoria Harbour and CBD

  • Well located and poised to

benefit from strong population growth and foreign investors

  • The Australian government

has announced a multi‐million dollar plan to rejuvenate the western end of Docklands with first phase valued at A$18m

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Investment Activities

Acquired 14.9% interest in Ley Choon Group

  • Acquired 14.9% of Ley Choon Group through a placement of 88,268,000 shares

at a placement price of S$0.1642 per share or a total of S$14.5 million. Placement price represents a 10% discount to closing price on 30 July 2013

  • Ley Choon Group is an established Singapore underground utilities

infrastructure service provider with a 20‐year track record

  • Investment is central to the Group’s strategy of growing its investment activities

to enlarge and diversify its revenue streams

Ley Choon Group Holdings is listed on SGX‐ST with a market capitalisation of S$128.5 million as at 12 Aug 2013

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Company Overview Company Overview Business Update Business Update

Financial Highlights Financial Highlights

Moving Forward Moving Forward

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5 5‐ ‐Year Financial Snapshot Year Financial Snapshot

Year End 31 Dec ($ Year End 31 Dec ($’ ’000) 000) FY12 FY12 FY11 FY11 FY10 FY10 FY09 FY09 FY08 FY08 Revenue Revenue 145,668 145,668 136,414 136,414 106,580 106,580 110,480 110,480 29,729 29,729 Gross Profit Gross Profit 57,671 57,671 46,569 46,569 49,751 49,751 43,798 43,798 13,191 13,191 Profit Before Tax Profit Before Tax 66,855 66,855 54,527 54,527 39,577 39,577 41,622 41,622 8,252 8,252 Profit After Tax Profit After Tax 57,540 57,540 47,369 47,369 34,567 34,567 34,309 34,309 8,178 8,178 EPS (cents) EPS (cents) 12.30 12.30 10.06 10.06 7.33 7.33 7.26 7.26 2.46 2.46

8,178 34,309 34,567 47,369 57,540 28% 31% 32% 35% 40%

  • 100%
  • 90%
  • 80%
  • 70%
  • 60%
  • 50%
  • 40%
  • 30%
  • 20%
  • 10%

0% 10% 20% 30% 40% 50% 60% 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 45,000 50,000 55,000 60,000 65,000 70,000 75,000 80,000 85,000 FY08 FY09 FY10 FY11 FY12 Net Profit Net Profit Margin

Stable Revenue & Profitability Growth (S$’000)

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2Q/1H FY2013 Financial Highlights 2Q/1H FY2013 Financial Highlights

(S$ (S$’ ’000) 000) 2QFY13 2QFY13 2QFY12 2QFY12 Change Change (%) (%) 1HFY13 1HFY13 1HFY12 1HFY12 Change Change (%) (%) Revenue Revenue 80,301 80,301 42,950 42,950 87.0 87.0 110,648 110,648 80,419 80,419 37.6 37.6 Gross Profit Gross Profit 38,267 38,267 16,412 16,412 133.2 133.2 52,244 52,244 30,284 30,284 72.5 72.5 Profit Before Tax Profit Before Tax 35,328 35,328 19,355 19,355 82.5 82.5 47,056 47,056 35,649 35,649 32.0 32.0 Profit After Tax Profit After Tax 29,007 29,007 16,661 16,661 74.1 74.1 38,790 38,790 30,710 30,710 26.3 26.3 EPS (cents) EPS (cents) 6.24 6.24 3.54 3.54 76.3 76.3 8.40 8.40 6.53 6.53 28.6 28.6

  • Revenue up 87% driven by higher progressive revenue recognistion

Revenue up 87% driven by higher progressive revenue recognistion from project sales from project sales

  • Gross profit margin improves 9.5 percentage points to 47.7%

Gross profit margin improves 9.5 percentage points to 47.7%

  • Net profit soars 74.1% to S$29.0 million

Net profit soars 74.1% to S$29.0 million

  • Group proposes record high interim cash dividend of 1.2 Singapor

Group proposes record high interim cash dividend of 1.2 Singapore cents (14.3% of e cents (14.3% of 1H2013 net profit) 1H2013 net profit)

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Strengthening Shareholders’ Fund with Reducing Gearing

50000 100000 150000 200000 250000 300000 350000 400000

FY2003 FY2004 FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 1HFY13

S$'000

Shareholders' Funds

50 100 150 200 250 300

FY2003 FY2004 FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 1HFY13

Percentage (%)

Gearing Ratio

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Financial Management & Funding Mix Financial Management & Funding Mix

Total Debt* (S$ ‘000)

326,512 135,088 81,922 69,919 67,357 58,759 125,152 167,770 101,969 77,447

FY09 FY10 FY11 FY12 1HFY13 Long Term Debt Short Term Debt

77,447 67,357 <1-year >1-year

Debt Expiry Profile* (S$’000)

Debt Management

  • Proactive deleveraging: Total debt reduced

significantly over past few years

  • Average cost of borrowing ranging between

0.92% to 1.55305%

  • Interest cover at approximately 46 times*

*As at 30 June 2013

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Company Overview Company Overview Business Update Business Update Financial Highlights Financial Highlights

Moving Forward Moving Forward

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Moving Forward

Delivering Growth and Sustained Returns Delivering Growth and Sustained Returns

Diversification Diversification Build Land Bank Build Land Bank Leverage in-house Expertise to Enhance Returns Leverage in-house Expertise to Enhance Returns Focus on Recurring Income Focus on Recurring Income

  • Two diversified sources of revenue:

– Development and sale of properties; and – Investment income

  • Geographic diversification: 1st foray into Melbourne, Australia
  • Two diversified sources of revenue:

Two diversified sources of revenue:

– – Development and sale of properties; and Development and sale of properties; and – – Investment income Investment income

  • Geographic diversification: 1st foray into Melbourne, Australia

Geographic diversification: 1st foray into Melbourne, Australia

  • Focus on land in prime and strategic locations
  • Secondary focus on well‐located suburban land parcels
  • Enbloc acquisitions and tender for newly released land parcels
  • Focus on land in prime and strategic locations

Focus on land in prime and strategic locations

  • Secondary focus on well

Secondary focus on well‐ ‐located suburban land parcels located suburban land parcels

  • Enbloc acquisitions and tender for newly released land parcels

Enbloc acquisitions and tender for newly released land parcels

  • Construction arm to support property development for better cost

efficiency and quality control

  • Proven efficiency in maximising returns
  • Construction arm to support property development for better cost

Construction arm to support property development for better cost efficiency and quality control efficiency and quality control

  • Proven efficiency in maximising returns

Proven efficiency in maximising returns

  • Acquiring investment properties at attractive yields
  • Recurring income stream from hospitality, retail and office properties
  • Acquiring investment properties at attractive yields

Acquiring investment properties at attractive yields

  • Recurring income stream from hospitality, retail and office prop

Recurring income stream from hospitality, retail and office properties erties

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End of Presentation End of Presentation

HIAP HOE LIMITED HIAP HOE LIMITED

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Backup Slides Backup Slides

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(S$ (S$’ ’000) 000) @30 Jun @30 Jun 2013 2013 @31 Dec @31 Dec 2012 2012 @31 Dec @31 Dec 2011 2011 @31 Dec @31 Dec 2010 2010 @31 Dec @31 Dec 2009 2009 @31 Dec @31 Dec 2008 2008 Total Assets Total Assets 615,411 615,411 590,296 590,296 592,177 592,177 527,535 527,535 601,924 601,924 534,332 534,332 Total Liabilities Total Liabilities 273,646 273,646 284,975 284,975 340,734 340,734 320,542 320,542 426,940 426,940 392,714 392,714 Share Capital & Premium Share Capital & Premium 84,445 84,445 84,445 84,445 84,445 84,445 84,445 84,445 84,445 84,445 84,445 84,445 ‐ ‐ accumulated losses prior to accumulated losses prior to RTO RTO (7,671) (7,671) (7,671) (7,671) (7,671) (7,671) (7,671) (7,671) (7,671) (7,671) (7,671) (7,671) ‐ ‐ accumulated profits post RTO accumulated profits post RTO 261,393 261,393 227,518 227,518 174,352 174,352 129,268 129,268 96,969 96,969 63,800 63,800 ‐ ‐ other reserves*

  • ther reserves*

4,597 4,597 1,303 1,303 261 261 828 828 1,023 1,023 786 786 Minority Interest Minority Interest (1,000) (1,000) (274) (274) 56 56 123 123 218 218 258 258 Total Equity Total Equity 341,765 341,765 305,321 305,321 251,443 251,443 206,993 206,993 174,984 174,984 141,618 141,618 Total Equity & Liabilities Total Equity & Liabilities 615,411 615,411 590,296 590,296 592,177 592,177 527,535 527,535 601,924 601,924 534,332 534,332

Balance Sheet Balance Sheet

Net Asset Value Per Share (cents) Net Asset Value Per Share (cents) 72.84 72.84 64.94 64.94 53.39 53.39 43.81 43.81 36.97 36.97 37.38 37.38 Gearing Gearing 0.42x 0.42x 0.56x 0.56x 0.99x 0.99x 1.26x 1.26x 2.20x 2.20x 2.60x 2.60x

*other reserves for FY09, FY10, FY11 & FY12 includes Treasury Sh *other reserves for FY09, FY10, FY11 & FY12 includes Treasury Shares ares

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Cash Flow Cash Flow

(S$ (S$’ ’000) 000) @30 Jun @30 Jun 2013 2013 @31 Dec @31 Dec 2012 2012 @31 Dec @31 Dec 2011 2011 @31 Dec @31 Dec 2010 2010 @31 Dec @31 Dec 2009 2009 @31 Dec @31 Dec 2008 2008 Operating Cash Flow Operating Cash Flow 23,545 23,545 62,809 62,809 (36,123) (36,123) 195,588 195,588 (15,566) (15,566) (281,705) (281,705) Investing Cash Flow Investing Cash Flow (762) (762) 12,289 12,289 22,860 22,860 (32,546) (32,546) (247) (247) (41,574) (41,574) Financing Cash Flow Financing Cash Flow (22,120) (22,120) (64,868) (64,868) (12,817) (12,817) (129,911) (129,911) 9,265 9,265 302,911 302,911 Net +/(‐) in cash and cash equivalents 663 10,231 (26,080) (33,130) (6,548) (20,368) Cash and cash Cash and cash equivalents at beginning equivalents at beginning

  • f year
  • f year

20,600 20,600 10,370 10,370 36,449 36,449 3,319 3,319 9,867 9,867 30,235 30,235 Cash and cash equivalents at end of year 21,263 20,600 10,370 36,449 3,319 9,867

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Key Financial Ratios

Consolidated 1HFY13 1HFY13 FY12 FY12 FY11 FY11 FY10 FY10 FY09 FY09 FY08 FY08

Gross Margin 47.2% 39.6% 34.1% 46.7% 39.6% 44.4% Operating Margin 41.7% 37.2% 32.5% 36.1% 37.7% 29.9% Net Margin (Profit after Tax) 35.1% 39.5% 34.7% 32.4% 31.1% 27.5% Total Borrowings / Total Assets 0.24x 0.29x 0.42x 0.49x 0.64x 0.69x Net Borrowings / Total Assets 0.20x 0.26x 0.40x 0.42x 0.63x 0.67x Total Borrowings / Total TNW 0.42x 0.56x 0.99x 1.26x 2.20x 2.60x Net Borrowings / Total TNW 0.36x 0.50x 0.95x 1.08x 2.18x 2.53x Total Tangible Net Worth (TNW)‐$’000 341,765 305,321 251,443 206,993 174,984 141,618