Full Year Ended December 31, 2013roxypacific.listedcompany.com/newsroom/20140214_153346_E... · 2014-02-14 · 3 Spottiswoode18 Residential 100% 251 100% 254.4 193.7 60.7 4 NottinghillSuites

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Results BriefingFull Year Ended December 31, 2013

14 February, 2014

Roxy-Pacific Holdings LimitedEstablished Specialty Property and Hospitality Group

Agenda

Financial Performance Business Review Group Borrowings Outlook

2

Financial Performance

3


14 February, 2014


Financial Highlights – FY2013 & 4Q2013

Achieves record net profit of S$92.2 million in FY2013

Revenue hits new record at S$369.0 million

Strong performance recorded in FY2013 and 4Q2013 largely due to higher revenue recognitionfrom Property Development segment

High earnings visibility with progress billings of approximately S$922.4(1) million, to berecognised from 1Q2014 to FY2017

Strong growth headroom with cash and cash equivalents of S$354.2 million

Proposed a final cash dividend of 1.297 SGD cents per share, bringing total dividends for FY2013to 1.913 cents per share, 50% higher compared to prior year (2012: 1.2752 SGD cents)

(1) Based on Option to Purchase granted up to February 6, 2014.

4


Financial Results – 4Q2013

4Q2013 4Q2012 % change

Revenue (S$’m) 169.7 56.2 202%

Gross Profit (S$’m) 58.4 21.4 173%

Gross Margin (%) 34% 38% -4ppt

Pre-tax Profit (S$’m) 50.7 26.3 93%

Net Profit (S$’m) 44.8 23.3 92%

EPS (cts) (1)(restated) 3.76 1.97 91%

(1) EPS has been adjusted for the bonus issue in 2013.

5


Financial Results – FY2013

FY2013 FY2012 % change

Revenue (S$’m) 369.0 190.6 94%

Gross Profit (S$’m) 125.7 75.9 66%

Gross Margin (%) 34% 40% -6ppt

Pre-tax profit (S$’m) 106.7 65.9 62%

Net Profit (S$’m) 92.2 58.3 58%

EPS (cts) (1)(restated) 7.73 4.90 58%

(1) EPS has been adjusted for the bonus issue in 2013.

6


Financial PerformanceTurnover Trend (S$’m)

$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

$76.7

$40.6

$30.1

$44.1

$47.6

$42.1 $56.2

$169.7

$0.0

$50.0

$100.0

$150.0

$200.0

$250.0

$300.0

$350.0

$400.0

2007 2008 2009 2010 2011 2012 2013

4Q

3Q

2Q

1Q$102.7

$130.1

$183.7 $190.6

$216.9

$163.5

$369.0

4Q2013 revenue increased by 202% y-o-yOverall, revenue increased by 94% to $369.0m in FY2013

7

94%


Financial PerformanceProfit Trend (S$’m)

4Q2013 net profit increased by 92% y-o-yOverall, net profit increased by 58% to $92.2m in FY2013

8

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

$9.4$12.9

$16.5 $17.8$19.5

$2.5

$8.7 $6.2

$8.9

$13.4$8.2

$16.1

$9.0

$2.9 $5.9

$12.0

$11.9 $23.3

$44.8

$0.0

$20.0

$40.0

$60.0

$80.0

$100.0

2007 2008 2009 2010 2011 2012 2013

4Q

3Q

2Q

1Q$24.7

$19.2

$27.9

$42.8

$51.8$58.3

$92.2

58%


Segment Results – FY2013Revenue (S$’m)

$321.0

$138.7

$48.0

$51.9

$-

$50.0

$100.0

$150.0

$200.0

$250.0

$300.0

$350.0

$400.0

FY2013 FY2012

Property Development Hotel Ownership & Property Investment

9

$369.0

$190.6131%

8%

87%

73%

13%

27%


Segment Results – FY2013Adjusted EBITDA* (S$’m)

$128.0

18%

139%$80.6

* Excludes corporate expenses , goodwill written offand gain on disposal of available-for-sale financialassets

10

53%

$102.4

$42.8

$18.3

$22.2

$7.3

$15.6

$0.0

$20.0

$40.0

$60.0

$80.0

$100.0

$120.0

$140.0

FY2013 FY2012Property Development

Hotel Ownership & Property Investment

Fair value gain on investment properties

19%

28%

53%

6%

14%

79%


(1) Cash holdings include project account monies amounting to S$191.1m as at 31 December 2013 (31 December 2012: S$131.5m)

Total assets (S$’m) 1,298.9 924.1 40.6%

Total debt ( S$‘m) 880.9 611.4 44.1%

Cash & cash equivalents ( S$‘m) 354.2 253.2 40.0%

Net Assets Value (“NAV”) ( S$‘m ) 330.0 253.6 30.1%

Adjusted Net Assets Value (“ANAV”) (S$‘m) 771.1 638.1 20.8%

NAV per share (cents) * 27.6 21.3 29.6%

ANAV per share (cents) *(2) 64.6 53.5 20.8%

Cash holdings per share (cents) *(1) 29.7 21.2 40.0%

Net Debt to ANAV (times) 0.68 0.56 21.4%

Return on Equity (%) 28.0 23.0 21.7%

(1)

(2)

31 Dec 13 31 Dec 12 Increase / (Decrease)

* The comparatives of 2012 were restated and adjusted for the bonus issue in 2013.

(2) The fair value of Grand Mercure Roxy Hotel and office premise was estimated to be S$522.5m as at 31 December 2013 (31 December 2012:S$459.7m)

11

Financial Position

Financial Ratios

Business Review

12


14 February, 2014

Property Development

Business Review

Property Development Revenue from Property Development (S$’m)

Increase in revenue by 131%from $138.7 million in FY2012to $321.0 million in FY2013

Mainly due to

• 100% recognition ofrevenue fromWIS@Changi

• Recognition of higherrevenue fromSpottiswoode 18,Jupiter18, Space@Kovan,Treescape and The MKZ inFY 2013

• Recognition of 2 newprojects - Jade Residencesand Whitehaven inFY2013.

13

TheVerte(TOP:

Jan 12)

Nova88

(TOP:Apr 12)

Studios@Tembeling(TOP:Jul 12)

StraitsReside

nces(TOP:

Nov 13)

Spottiswoode

18

Jupiter18

Space@Kova

n

Treescape

TheMKZ

JadeReside

nces

Whitehaven

Wis@Changi(TOP:

Nov 13)

Total

FY2013 0.0 0.0 0.0 9.7 115.9 18.2 59.3 14.4 20.2 2.7 2.2 78.3 320.9

FY2012 2.9 6.6 8.1 8.2 67.0 11.2 28.8 5.4 0.5 0.0 0.0 0.0 138.7

138.7

320.9

0.0

50.0

100.0

150.0

200.0

250.0

300.0

350.0

400.0

450.0

500.0

Business Review

Property Development Share of results in associates (S$’m)

0.05

2.843.31

0.21

2.74

-

1.96

1.20

1.84

(0.28)

(2.00)

-

2.00

4.00

6.00

8.00

10.00

12.00

FY2013 FY2012

Haig 162 Natura@Hillview Eon Shenton NottingHill Millage

14

150%

$9.94

$3.97

Business Review

Property Development Strong attributable progress billings to be recognised (S$’m)

$188.4

$336.5 $346.2$471.6

$751.2

$1,031.5

$1,344.2

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

$421.8

$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 2013

Sales value Revenue recognised

$861.7

$922.4

(1) Based on Option to Purchase granted up to 6 February 2014

Increasedby 7%

comparedto FY2012

15

(1)

Business Review

Property Development Strong attributable progress billings to be recognised – By Projects (S$’m)

Project name Type of development Group stakeTotal units in

project Unit soldAttributable total

sale value (1)

Attributable revenuerecognised up to 31

Dec 2013

Balance attributable progressbillings to be recognised from

1Q2014

% Unit % $'m $'m $'m

1 Jupiter 18 (2) Residential 100% 53 100% 35.8 34.7 1.1

2 Space@Kovan Shop 100% 56 100% 46.6 25.7 20.9

Residential 100% 140 100% 113.1 62.4 50.7

3 Spottiswoode 18 Residential 100% 251 100% 254.4 193.7 60.7

4 Nottinghill Suites Residential 45% 124 100% 39.5 17.1 22.4

5 Centropod@Changi Shop 100% 108 100% 54.4 - 54.4

Restaurant 100% 9 100% 8.3 - 8.3

Office 100% 75 100% 78.7 - 78.7

6 Treescape Residential 100% 30 100% 29.2 19.8 9.4

7 Millage Residential 48% 70 100% 23.5 3.9 19.6

Shop 48% 86 100% 28.7 4.8 23.9

8 Natura@Hillview Residential 49% 193 100% 72.2 23.3 48.9

9 Eon Shenton Office 20% 98 100% 60.1 6.2 53.9

Residential 20% 132 95% 38.0 3.9 34.1

Shop 20% 23 100% 4.8 0.5 4.3

10 The MKZ Residential 100% 42 100% 51.8 20.9 30.9

11 Jade Residences (3) Residential 100% 171 78% 159.2 2.7 156.5

Shop 100% 2 0% - - -

12 Whitehaven (4)4) Residential 100% 120 82% 119.5 2.2 117.3

Shop 100% 1 100% 1.2 - 1.2

13 LIV on Sophia (4) Residential 90% 64 100% 78.5 - 78.5

14 LIV on Wilkie (5) Residential 90% 81 43% 46.7 - 46.7

Total 1,929 1,344.2 421.8 922.4

(1) Based on Option to Purchase granted up to 6 February 2014 (2) TOP obtained in January 2014 (3) Launched in April 2013 (4) Launched in May 2013(5) Launched in October 2013

16

Business Review

Portfolio of Properties

(1) equivalent to RM42.2m(2) equivalent to HKD540.0m

17

No. Location / Description Type ApproximateLand Area

Approximate GrossFloor Area

Group’s stake ApproximateAttributableGross Floor

Area

ApproximateAttributable

Land Cost

(sqf) (sqf) % (sqf) $’mSingapore

1 134B Lorong K Telok Kurau Singapore ResidentialDevelopment

23,160 32,423 100% 32,423 25.0

(Currently known as Sunnyvale)

2 111 Tampines Road Singapore(Currently known as Yi Mei Garden)

Commercial &Residential

Development

79,857 167,700 85% 142,545 116.3

Overseas3 Lot 3370, Section 41, Jalan Dewan

Sultan Sulaiman, Kuala LumpurCommercial &

ResidentialDevelopment 64,131 698,717 47% 328,397 16.9(1)

Sub-total for development properties 167,148 898,840 503,365 158.2

Overseas4 No. 8 Russell Street, Causeway Bay,

Hong KongInvestment

Propertyna 99,076 30% 29,723 88.2

(2)

Grand total 167,148 997,916 533,088 246.4

Business Review

18


14 February, 2014

Hotel Ownership

Business Review

Hotel Ownership

AOR , ARR & RevPar

92.5%

88.0%86.2%

94.2% 94.6%

89.9%

86.1%

$154.4

$200.3

$147.0

$166.4

$188.3$199.9

$191.5

$142.8

$176.3

$126.7

$156.7

$178.1 $179.7

$164.9

$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 FY2013

AOR ARR RevPar

8%

RevPar decreased by 8% to $164.9 in FY2013 compared to$179.7 in FY2012

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

4%

19

4%

Business Review

Hotel Ownership

Hotel Revenue (S$’m)

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

11.8

12.513.1

12.2

9.9

11.7

9.9

11.4

12.311.6

11.8

-

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

$46.4

7%

Hotel revenue decreased by 7% from S$50.2m in FY2012 to S$46.4m in FY2013

20

Business Review

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

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

4.4

5.0

5.1

3.7

4.5

5.2 4.2

4.3

$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

$16.6

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

Hotel NOP decreased by 15% from $19.6m in FY2012to S$16.6m in FY2013

21

15%

Business Review

22


14 February, 2014

Property Investment

Business Review

Property InvestmentRevenue (S$’m)

$0.6

$1.8

$1.0

$1.3

$1.5

$1.6

$1.7 $1.6

$0.0

$0.5

$1.0

$1.5

$2.0

$2.5

$3.0

$3.5

FY2009 FY2010 FY2011 FY2012 FY2013

Kovan Centre Roxy Square

$1.9

$3.3

$2.6

Decreased by 3% in FY2013 due toexpiry of lease terms for some shopunits in Roxy Square

23

3%

Group Borrowing

24


14 February, 2014

Group Borrowings

Debt Profile 31 Dec 13 31 Dec 12

Total borrowings $880.9m $611.4m

Fixed rate loans $90.6 m $183.8 m

Fixed rate loans as % of total loans 10% 30%

Interest cover ratio (times) 19.4 16.2

Weighted average term for fixed rates loans 13 months 13 months

Weighted average interest rate (fixed rates loans) 2.13% 2.45%

Weighted average interest rate (floating rates loans) 1.98% 1.92%

25

Group Borrowings

Debt Profile as at 31 December 2013 (S$’m)

Total outstanding debts of S$880.9m as at 31 December 2013

26

Development loans - soldunits in launched projects,

$493.2, 56%

Development loans - unsoldunits in launched projects,

$70.4, 8%

Developmentloans - projects

yet to be launched,$127.8, 15%

Revolvingloans, $71.5,

8%

Repayable in Dec 2014, $4.2,0.5%

Repayable in Jan 2015 to Dec2018, $51.6, 5.9%

Repayable after Jan 2019,$62.2, 7.1%

Term loans (Hotel & shops),$118, 13%

$691.4, 78.5%

1. General

- The Singapore Government has forecast Singapore’s Gross Domestic Product (“GDP”) growth for 2014 to be between 2% to 4% as compared to theestimated growth of 3.7% in 2013.

2. Property Development- Based on the latest statistics released by Urban Redevelopment Authority (URA) on 24th January 2014, for the year 2013 as a whole, prices of private

residential properties increased by 1.1%, lower than the 2.8% increase in 2012. The various property cooling measures, including the Total DebtServicing Ratio (“TDSR”) framework has affected the overall property market’s sentiments.

- The Group has a balance amount of attributable progress billings of approximately $922.4 million, the profits of which will be recognised from 1Q2014to FY2017.

3. Hotel Ownership- For the tourism sector, Singapore is well positioned to benefit as an increasingly popular transit hub for long-haul travellers.

- It is also likely to benefit from the growth in outbound travel from mainland China, which is expected to double from 100 million in 2013 to 200 millionby 2020.

- However, with the uncertainties in the overall global economy and increasing hotel room supply in Singapore in 2014, the Group expects 2014 to be acompetitive year for the hotel industry.

4. Strong financial flexibility with cash and cash equivalents of S$354.2m and a S$200m Multicurrency Medium Term Note Programme established inMarch 2013.

5. Barring any unforeseen circumstances, the directors expect the Group to be profitable in 2014.

Outlook

27

Supplemental Slide

28


14 February, 2014

29

ACQUISITION OF NO. 8 RUSSELL STREET,CAUSEWAY BAY, HONG KONG

• A Commercial Property- 21 floors of commercial retail space- Gross Floor Area of 99,076 sq. ft.- Government lease of 999 years

commencing from 25 June 1861- As of 13 February 2014, 14 floors sold

•Attractiveness of Location- Opposite Times Square Hong Kong- Hip and Exciting District- Russell Street reported to command

the highest rent in the world1

• Attributable Cost of Acquisition(based on Group’s interest of 30%)- Approximately HK$540.0 million

1 Source: Economic Times, February 3, 2014

THANK YOU

Results BriefingFull Year Ended December 31, 201314 February, 2014

30

Documents

Full Year Ended December 31, 2013roxypacific.listedcompany.com/newsroom/20140214_153346_E... · 2014-02-14 · 3 Spottiswoode18 Residential 100% 251 100% 254.4 193.7 60.7 4 NottinghillSuites