Roxy-Pacific Holdings Limitedroxypacific.listedcompany.com/newsroom/20130802_152036_E8Z_75D… · Financial Highlights – 1H2013 Achieves 26% growth in profit before tax to S$36.2

1

Roxy-Pacific Holdings LimitedEstablished Specialty Property and Hospitality Group

Results BriefingHalf Year ended June 30, 20132 August 2013

Agenda

Financial Performance

Business Review

Group Borrowings

Outlook

2


Financial Performance


3

Financial Highlights – 1H2013

Achieves 26% growth in profit before tax to S$36.2 m

35% turnover growth, boosted by 54% higher revenue recognition from Property Developmentsegment

Progress billings hits S$1.1 billion, sustained earnings visibility to be progressively recognisedfrom 3Q2013 to FY2017

Strong financial flexibility with cash and cash equivalents of S$323.1 m and a S$200 mMulticurrency Medium Term Note Programme established in March 2013

Declares interim dividend of 0.77 SGD cents per share


4


Financial Results – 1H2013

1H2013 1H2012 % change

Revenue (S$’m) 122.6 90.8 35%

Gross Profit (S$’m) 41.7 37.2 12%

Gross Margin (%) 34% 41% -7ppt

Pre-tax profit (S$’m) 36.2 28.8 26%

Net Profit (S$’m) 31.4 26.8 17%

EPS (cts) 3.28 2.80 17%

5


Financial Results – 2Q2013

2Q2013 2Q2012 % change

Revenue (S$’m) 68.9 52.7 31%

Gross Profit (S$’m) 23.4 20.5 14%

Gross Margin (%) 34% 39% -5ppt

Pre-tax Profit (S$’m) 21.7 17.7 23%

Net Profit (S$’m) 19.5 17.7 10%

EPS (cts) 2.05 1.86 10%

6


Financial PerformanceTurnover Trend (S$’m)

Revenue increased by 31% y-o-yRevenue increased by 28% q-o-qOverall, revenue increased by 35% to $122.6m in 1H2013

$16.6 $23.4 $38.1$60.9 $50.4 $38.1

$53.7$25.9$41.7

$43.7

$55.3$46.8

$52.7

$68.9

$19.6

$34.9$37.6

$53.1

$44.4 $43.6

$40.6

$30.1

$44.1

$47.6

$42.1 $56.2

$0.0

$50.0

$100.0

$150.0

$200.0

$250.0

2007 2008 2009 2010 2011 2012 2013

4Q

3Q

2Q

1Q

$102.7

$130.1

$183.7 $190.6

$216.9

$163.5

$122.6

35%

7

$2.7 $4.2 $6.4 $9.0 $10.0 $9.0 $11.8$5.0$8.9

$9.4$12.9

$16.5 $17.7$19.5

$2.5

$8.7 $6.2

$8.9

$13.4$8.3

$9.0

$2.9 $5.9

$12.0

$11.9 $23.3

$0.0

$10.0

$20.0

$30.0

$40.0

$50.0

$60.0

$70.0

2007 2008 2009 2010 2011 2012 2013

4Q

3Q

2Q

1Q

$24.7

$19.2

$27.9

$42.8

$51.8

$58.3

$31.4


Financial PerformanceProfit Trend (S$’m)

2Q2013 net profit increased by 7% y-o-y2Q2013 net profit increased by 65% q-o-qOverall, net profit increased by 17% to $31.4m in 1H2013

17%

8

$99.4

$64.5

$23.2

$26.3

$-

$20.0

$40.0

$60.0

$80.0

$100.0

$120.0

$140.0

1H2013 1H2012

Property Development Hotel Ownership & Property Investment


Segment Results – 1H2013Revenue (S$’m)

19%

81%

29%

71%

$122.6

$90.854%

12%

9

$30.1$19.9

$8.8

$11.5

$5.3

$4.4

$0.0

$5.0

$10.0

$15.0

$20.0

$25.0

$30.0

$35.0

$40.0

$45.0

$50.0

1H2013 1H2012Property Development

Hotel Ownership & Property Investment

Fair value gain on investment properties


Segment Results – 1H2013Adjusted EBITDA* (S$’m)

$44.2

$35.8

20%

24%

52%

12%

20%

68%

12%

32%

56%

* Excludes corporate expenses and gain on disposal ofavailable-for-sale financial assets

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(1) Cash holdings include project account monies amounting to S$140.9m as at 30 June 2013 (31 December 2012: S$131.5m)

Total assets ( S$’m) 1,105.6 924.1 19.6%

Total debt ( S$‘m) 770.7 611.4 26.1%

Cash & cash equivalents ( S$‘m) 323.1 253.2 27.6%

Net Assets Value (“NAV”) ( S$‘m) 276.0 253.6 8.8%

Adjusted Net Assets Value (“ANAV”) (S$‘m) 656.8 638.1 2.9%

NAV per share (cents) 28.9 26.6 8.6%

ANAV per share (cents) (2) 68.8 66.8 2.9%

Cash holdings per share (cents) (1) 33.8 26.5 27.6%

Net Debt to ANAV (times) 0.68 0.56 21.4%

Return on Equity (%) 22.9 23.0 (0.6%)

(1)

(2)

(2) The fair value of Grand Mercure Roxy Hotel and office premise was estimated to be S$461.9m as at 30 June 2013 (31 December 2012: S$459.7m)

30 Jun 13 31 Dec 12 Increase / (Decrease)


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Business ReviewProperty Development


12

$2.9$6.6

$7.6

$7.9

$3.9

$48.6$32.4

$11.3

$3.1

$19.5

8.1

$4.1$8.0

0

20

40

60

80

100

120

1H2013 1H2012

The MKZ

Treescape

Space@Kovan

Jupiter 18

Spottiswoode 18

Straits Residences

Studios@Tembeling (TOP: Jul 12)

Nova 88 (TOP: Apr 12)

The Verte (TOP: Jan 12)

Revenue from Property Development (S$’m)

Increase in revenue by 54%from $64.5 million in 1H2012to $99.4 million in 1H2013

Mainly due to

• Recognition of higherrevenue fromSpace@Kovan, Jupiter 18& Spottiswoode 18

• Recognition of revenuefrom new developmentprojects –Treescape &The MKZ.

• Partly offset by absenceof revenue recognitionfrom The Verte, Nova 88& Studios@Tembeling


54%

Business Review – 1H2013Property Development

$99.4

$64.5

13

Attributable PD revenue from JV projects $23.7 $5.8 309%

Total Group PD Revenue (including JV projects) $123.1 $70.4 75%

1H2013 1H2012 % change

Group PD Revenue $99.4 $64.6 54%

Attributable Revenue from Property Development (“PD”) – including JV projects (S$’m)

Business Review – 1H2013Property Development


Jupiter18, $11.3

, 9%

StraitsResidences,

$7.9 , 6%

Spottiswoode18, $48.6 ,

39%

Space@Kovan, $19.5 , 16%

Treescape,$4.1 , 3%

The MKZ,$8.0 , 7%

Haig 162$2.22%

Eon Shenton,$4.8 , 4%

Natura@Hillview

$11.49%

NottinghillSuites, $4.6 , 4%

Millage$0.81%

Other, $23.7 ,20%

1H2013

The Verte ,$2.9 , 4%Nova 88,

$6.6 , 9%

Studios@Tembeling ,$7.6 , 11%

Jupiter 18,$3.1 , 4%

StraitsResidences,

$3.9 , 6%

Spottiswoode 18,

$32.4 , 46%

Space@Kovan, $8.1 ,

12%

Haig 162,$5.8 , 8%

Other, $5.8, 8%

1H2012

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Share of results in associates (S$’m)Business Review – 1H2013Property Development


0.06

1.09

1.660.05

1.44

(0.30)

0.87

0.02

(0.50)

-

0.50

1.00

1.50

2.00

2.50

3.00

3.50

4.00

4.50

1H2013 1H2012

Millage

NottingHill Suites

Eon Shenton

Natura@Hillview

Haig 162

482%

$4.11

$0.71

15

$188.4

$336.5 $346.2$471.6

$751.2

$1,031.5

$1,347.1

$53.0 $78.7 $65.4$143.0 $152.6 $169.8

$266.8

$0.0

$200.0

$400.0

$600.0

$800.0

$1,000.0

$1,200.0

$1,400.0

$1,600.0

2007 2008 2009 2010 2011 2012 1H2013

Sales value Revenue recognised


Strong attributable progress billings to be recognised (S$’m)Business Review – 1H2013Property Development

(1) Based on Option to Purchase granted up to 24 July 2013

$861.7

$1,080.3

(1)Increased by

25.4%compared to

FY2012

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Business Review – 1H2013Property Development Strong attributable progress billings to be recognised – By Projects (S$’m)

(1) Based on Option to Purchase granted up to 24 July 2013 (2) Launched in April 2013 (3) Launched in May 2013


Project name Type of development Group stakeTotal units in

project Unit soldAttributable

total sale value (1)

Attributable revenuerecognised up to

30 Jun 2013

Balance attributableprogress billings to be

recognisedfrom 3Q2013

% Unit % $'m $'m $'m1 Straits Residences Residential 100% 30 97% 19.6 18.4 1.22 Jupiter 18 Residential 100% 53 100% 35.8 27.9 7.93 Space@Kovan Shop 100% 56 100% 46.6 14.1 32.5

Residential 100% 140 100% 113.1 34.2 78.94 Spottiswoode 18 Residential 100% 251 100% 254.4 126.3 128.15 Nottinghill Suites Residential 45% 124 100% 39.5 8.5 31.06 Wis@Changi Shop 100% 7 100% 4.9 - 4.9

Restaurant 100% 16 100% 12.9 - 12.9office 100% 60 100% 60.5 - 60.5

7 Centropod@Changi Shop 100% 108 100% 54.4 - 54.4Restaurant 100% 9 100% 8.3 - 8.3

Office 100% 75 100% 78.7 - 78.78 Treescape Residential 100% 30 100% 29.2 9.5 19.79 Millage Residential 48% 70 100% 23.5 0.3 23.2

Shop 48% 86 100% 28.7 0.4 28.310 Natura@Hillview Residential 49% 193 100% 72.2 12.3 59.911 Eon Shenton Office 20% 98 97% 57.8 3.6 54.2

Residential 20% 132 93% 37.3 2.4 34.9Shop 20% 23 100% 4.8 0.3 4.5

12 The MKZ Residential 100% 42 100% 51.8 8.6 43.213 Jade Residences(2) Residential 100% 171 60% 123.6 - 123.6

Shop 100% 2 0% - - -14 Whitehaven(3) Residential 100% 120 76% 109.8 - 109.8

Shop 100% 1 100% 1.2 - 1.215 LIV on Sophia(3) Residential 90% 64 100% 78.5 - 78.5

Total 1,961 1,347.1 266.8 1,080.3

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Landbanks

(1) the acquisition is subject to and conditional upon the approval of the Court.(2) The acquisition is subject to and conditional upon the obtaining of an Order for Sale from the Strata Titles Board or the Court (as case may be)

approving this sale and purchases, if necessary.(3) equivalent to RM42,198,441.


Location / Description ApproximateLand Area

ApproximateGross Floor Area

Group’sstake

ApproximateAttributable Gross

Floor Area

ApproximateAttributable Land

Cost(sq ft) (sq ft) % (sq ft) $’m

1 211-223A Pasir Panjang Road, Singapore(1)

30,745 43,043 45% 19,369 14.9(Currently known as Harbour View Gardens)

2 LIV on Wilkie 22,533 47,319 90% 42,587 51.87/9/11/13/15 Wilkie Terrace, Singapore

3 134B Lorong K Telok Kurau Singapore 23,160 32,423 100% 32,423 25.0(Currently known as Sunnyvale)

4 111 Tampines Road Singapore(2)

78,030 163,862 100% 163,862 136.0(Currently known as Yi Mei Garden)

5 Lot 3370, Section 41, Jalan Dewan Sultan Sulaiman,Kuala Lumpur

64,131 698,717 47% 328,397 16.9(3)

218,599 985,364 586,638 244.6

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Business ReviewHotel Ownership

19

92.5%

88.0%86.2%

94.2% 94.6%

89.9%91.7%

81.5%

$154.4

$200.3

$147.0

$166.4

$188.3$199.9 $200.6 $196.1

$142.8

$176.3

$126.7

$156.7

$178.1 $179.7 $184.0

$159.8

$50.0

$80.0

$110.0

$140.0

$170.0

$200.0

$230.0

70.0%

73.0%

76.0%

79.0%

82.0%

85.0%

88.0%

91.0%

94.0%

FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 1H2012 1H2013

AOR ARR RevPar

AOR , ARR & RevPar

Business Review – 1H2013Hotel Ownership RevPar decreased by 13% to $159.8 in 1H2013 compared

to $184.0 in 1H2012

* Decrease due to closure of hotel rooms for renovation. The room renovation was completed in June 2013.


10ppt*

13%

20


Hotel Revenue (S$’m)

Business Review – 1H2013Hotel Ownership Hotel revenue decreased by 12% from S$25.5 m in 1H2012 to S$22.4 m

in 1H2013

8.511.7 10.0 10.3 11.7 13.1 10.9

9.1

12.6

8.711.0

12.012.4

11.5

9.8

12.5

9.0

11.812.5

13.19.9

11.7

9.9

11.4

12.311.6

-

10.0

20.0

30.0

40.0

50.0

60.0

FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013

Q4

Q3

Q2

Q1

$37.3

$48.5

$37.6

$44.5

$48.5$50.2

$22.4

12%

21

3.6 5.3 3.4 3.9 4.8 5.4 3.7

3.95.8

3.0 4.65.0 4.8

4.2

4.3

5.4

3.2

4.75.4 5.2

5.0

5.1

3.7

4.5

5.2 4.2

$0.0

$5.0

$10.0

$15.0

$20.0

$25.0

FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013

Q4

Q3

Q2

Q1

$16.8

$21.6

$13.3

$17.7

$20.4$19.6

$7.9


Hotel Net Operating Profits (“NOP”) (S$m)

Business Review – 1H2013Hotel Ownership

Hotel NOP decreased by 22.5% from $10.2m in 1H2012 to S$7.9m in 1H2013

Hotel Net Operating Profits is defined as the earnings before interest, taxes, depreciation and amortisation.

22.5%

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Business ReviewProperty Investment


23


Business Review – 1H2013Property Investment

Revenue (S$’m)

$0.6

$1.8

$1.0

$1.3

$1.5

$1.6

$1.7

$0.83 $0.85

$0.0

$0.5

$1.0

$1.5

$2.0

$2.5

$3.0

$3.5

FY2009 FY2010 FY2011 FY2012 1H2012 1H2013

Kovan Centre Roxy Square

$1.9

$3.3

$2.6

Increased by 2% in 1H2013 due tohigher rental rates from shop unitsin Roxy Square

2%

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2 August 2013

Results BriefingHalf Year ended June 30, 2013

GroupBorrowings

25

Group BorrowingsDebt Profile 30 Jun 13 31 Dec 12

Total borrowings $770.7m $611.4m

Fixed rate loans $102.3 m $183.8 m

Fixed rate loans as % of total loans (1) 13% 30%

Interest cover ratio (times) 14.3 16.2

Weighted average term for fixed rates loans 14 months 13 months

Weighted average interest rate (fixed rates loans) 2.22% 2.45%

Weighted average interest rate (floating rates loans) 1.95% 1.92%

(1) Includes $27.7 m loans under interest rate swap contracts to swap floating interest rates for fixed interest rates


26

Development loans -sold projects, $383.5,

50%

Development loans -unsold projects, $189.6,

25%

Revolving loans, $77.5,10%

Repayable in June 2014$4.2, 1%

Repayable in July 2014 toJune 2018, $53.4, 7%

Repayable after July 2018,$62.5, 8%

Term loans(Hotel & Shops)

$120.1, 16%

$573.1, 75%

Group BorrowingsDebt Profile as at 30 June 2013 (S$’m)

Total outstanding debts of S$770.7 m as at 30 June 2013


27



Outlook

28

Outlook1. General

- Based on advance estimates by Ministry of Trade and Industry Singapore (“MTI”), Singapore’s economy grew by 3.7% on a year-on-year basis in the

2nd quarter of 2013, compared to 0.2% in the 1Q2013. On a quarter-on-quarter seasonally-adjusted annualised basis, the economy grew by 15.2%,

faster than the 1.8% growth in the previous quarter.

2. Property Development

- Based on latest statistics released by Urban Redevelopment Authority (“URA”) on 26th July 2013, prices of private residential properties increased

by 1.0% in 2nd Quarter 2013, compared with 0.6% price growth recorded in 1st Quarter 2013.

- The new loan restrictions announced by the Monetary Authority of Singapore (“MAS”) may affect general market sentiment as buyers are

generally more cautious.

- The Group’s progress billings hit S$1.1 billion, the profits of which will be recognised from 3Q2013 to FY2017.

3. Hotel Ownership

- Singapore Tourism Board has forecasted tourism receipts of between S$23.5 to S$24.5 billion and visitor arrivals of between 14.8 million and 15.5

million in 2013 compared to 14.4 million in 2012.

- Along with Singapore’s healthy pipeline of upcoming MICE events, the Group is optimistic that the demand for the Group’s hotel rooms should

continue to be strong in the 2H2013.

4. Strong financial flexibility with cash and cash equivalents of S$323.1m and a S$200m Multicurrency Medium Term Note Programme established in

March 2013.

6. Barring any unforeseen circumstances, the directors expect the Group to be profitable in 2013.


29



Thank You

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Documents

Roxy-Pacific Holdings Limitedroxypacific.listedcompany.com/newsroom/20130802_152036_E8Z_75D… · Financial Highlights – 1H2013 Achieves 26% growth in profit before tax to S$36.2