roxy-pacific holdings limited...share of results of associates rise 13% to s$4.0 million (3q2015:...

ROXY-PACIFIC HOLDINGS LIMITED Results Announcement 3rd Quarter Ended 30 September 2016 28th October 2016

STRIKING A BALANCE FOR SUSTAINABLE

GROWTH

• Financial Performance

• Business Review

• Group Borrowings

• Outlook

Agenda

Overview – 3Q2016 & 9M2016

3Q2016 3Q2016 Group’s revenue was S$90.9 million as compared to S$87.6 million Hotel revenue decreased to S$11.4 million in 3Q2016 (3Q2015: S$11.6 million) Share of results of associates rise 13% to S$4.0 million (3Q2015: S$3.6 million) Strong take-up rate of close to 85% for Straits Mansion, 88% for Octavia and over 84% for The

Hensley 9M2016 9M2016 Group’s revenue was S$292.3 million as compared to S$379.6 million due to the

absence of revenue recognition from completion of Centropod@Changi Net profit attributable to shareholders decreased to S$37.9 million in 9M2016 (9M2015:

S$72.8 million) Total pre-sale revenue of S$399.2 million, the profit of which will be progressively recognised

from 4Q2016 to 2020 Strong cash and cash equivalents of S$238.7 million Net gearing remains healthy at 0.6 time notwithstanding the completion of acquisition of

properties in Australia and Singapore and Maldives resort in 9M2016.

3

Financial Performance

4

Financial Results 3Q2016 3Q2015 % change

Revenue (S$’m) 90.9 87.6 4%

Gross Profit (S$’m) 18.5 23.1 -20%

Gross Margin (%) 20% 26% -6 ppt

Share of results of associates

(net of tax) (S$'m) 4.0 3.6 13%

Pre-tax profit (S$’m) 10.9 15.5 -30%

Net Profit (S$’m) 8.8 13.3 -34%

Net Profit attributable to

shareholders (S$’m) 8.1 13.2 -39%

EPS (SGD cents) 0.7 1.1 -36%


5

Financial Results 9M2016 9M2015 % change

Revenue (S$’m) 292.3 379.6 -23%

Gross Profit (S$’m) 61.0 109.8 -44%

Gross Margin (%) 21% 29% -8 ppt

Share of results of associates

(net of tax) (S$'m) 10.5 9.2 14%

Pre-tax profit (S$’m) 51.7 84.6 -39%

Net Profit (S$’m) 40.3 72.8 -45%

Net Profit attributable to

shareholders (S$’m) 37.9 72.8 -48%

EPS (SGD cents) 3.2 6.1 -48%


23%

Financial Performance Turnover Trend (S$’m)

3Q2016 revenue increased by 4% to S$90.9m 9M2016 revenue decreased by 23% to S$292.3m mainly due to absence of

revenue recognition from Centropod@Changi Excluding Centropod@Changi, revenue increased by 23%.

6 * includes revenue recognised from Centropod@Changi amounting to S$141.4m upon obtaining its TOP in Jan 2015.


$16.6 $23.4 $38.1 $60.9 $50.4 $38.1 $53.7 $79.5 $198.2* $103.0 $25.9 $41.7

$43.7

$55.3 $46.8

$52.7 $68.9

$102.5

$93.7

$98.4

$19.6

$34.9 $37.6

$53.1

$44.4 $43.6

$76.7

$67.2

$87.6

$90.9

$40.6

$30.1

$44.1

$47.6

$42.1 $56.2

$169.7 $68.6

$81.4

$0

$50

$100

$150

$200

$250

$300

$350

$400

$450

$500

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

4Q

3Q

2Q

1Q

$102.7

$163.5 $190.6

$369.0

$183.7

$216.9

$317.8

$130.1

$460.9

$292.3

$2.7 $4.2 $6.4 $9.0 $10.0 $9.0 $11.8 $15.0 $46.3* $10.9 $5.0 $8.9

$9.4 $12.9 $16.5 $17.8

$19.5 $22.8

$13.1

$20.6

$2.5

$8.7 $6.2

$8.9

$13.4 $8.2

$16.1 $12.4

$13.3

$8.8

$9.0

$2.9 $5.9

$12.0

$11.9 $23.3

$44.8 $46.6

$12.5

$0

$20

$40

$60

$80

$100

$120

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

4Q

3Q

2Q

1Q

$27.9

$19.2

$42.8

$51.8 $58.3

$92.2 $96.8

$24.7

$40.3

Financial Performance Profit Trend (S$’m)

9M2016 net profit decreased by 45% to S$40.3m Excluding Centropod@Changi, net profit increased by 45%

7

45%


* includes profit from revenues recognised from Centropod@Changi amounting to S$44.9m upon obtaining its TOP in Jan 2015.

$85.2

Segment Results – 9M2016 Revenue (S$’m)

9M2016 – Total S$292.3 m 9M2015 – Total S$379.6 m

8


Property Development, $248.0 , 85%

Hotel Ownership , $35.0 , 12%

Property Investment,

$9.3 , 3%

Property Development, $336.9 , 89%

Hotel Ownership

, $33.3 , 9%

Property Investment, $9.4 ,

2%

Segment Results – 9M2016 Adjusted EBITDA* (S$’m)

9M2016 – Total S$73.8m 9M2015 – Total S$109.3m

9

* Adjusted EBITDA excludes corporate expenses, depreciation of property, plant and equipment, finance cost (net) and -- Fair value differences of cross currency swap and available-for-sale financial assets.


Property Development,

$42.8, 58%

Hotel Ownership, $9.2, 12%

Property Investment -

Rental income, $6.3, 9%

Property Investment -Fair

value gain, $15.5, 21%

Property Development,

$89.9, 82%

Hotel Ownership,

$9.6, 9%

Property Investment -

Rental income, $6.4, 6%

Property Investment -Fair

value gain, $3.4, 3%

10


Share of results in associates (S$’m)

Eon Shenton, 3.4

Eon Shenton, 10.1 Natura@Hillview, 2.5

Millage, 3.7

North Fremantle, 0.2

117 Clarence Street, 0.5

Peel Street, (0.4) -0.5

1.5

3.5

5.5

7.5

9.5

11.5

9M20159M2016

Peel Street

117 Clarence Street

North Fremantle

Millage

Natura@Hillview

Eon Shenton

S$10.5m

S$9.2m 14%

(1) Cash holdings include project account monies amounting to S$99.2m as at 30 September 2016 (31 December 2015: S$82.2m)

11

Financial Position 30 Sep 2016 31 Dec 2015 % change

Total assets (S$m) 1,495.8 1,408.8 6%

Total debt (S$m) 886.4 807.7 10%

Cash & cash equivalents (S$m) (1) (2) 238.7 313.0 -24%

Net debt (S$m) 559.7 412.7 36%

Net asset value (“NAV”) (S$m) 479.1 457.6 5%

Revaluation surplus (S$m) (3) 466.9 463.4 1%

Adjusted net asset value (“ANAV”) 946.0 921.0 3%


(2) Cash holdings decrease mainly due to acquisition of an office building in Australia and development sites in Singapore, Australia and Maldives resorts in 9M2016

(3) The fair value of the Grand Mercure Roxy Hotel, Noku Hotel in Kyoto, hotel in Phuket, property in Maldives and office premise were estimated to be S$634.8m as at 30 September 2016 (31 December 2015: S$588.3m)

(1) The fair value of the Grand Mercure Roxy Hotel, Noku Hotel in Kyoto, hotel in Phuket, property in Maldives and office premise were estimated to be S$634.8m as at 30 September 2016 (31 December 2015: S$588.3m)

12

Financial Ratios 30 Sep 2016 31 Dec 2015 % change

NAV per share (SGD cents) 40.2 38.3 5%

ANAV per share (SGD cents) (1) 79.3 77.2 3%

Cash holdings per share (SGD cents) (2) 20.0 33.1 -40%

Net debt to ANAV (times) 0.59 0.45 31%

Total debt to ANAV (times) 0.94 0.88 7%

Return on equity (%) 11% 19% -8ppt


(2) Cash holdings include project account monies amounting to S$99.2m and fixed deposits pledge for working capital loan facilities of S$88.0m as at 30 September 2016 (31 December 2015: S$82.2m & S$82.0m respectively)

Business Review

13

Results Announcement 3rd Quarter Ended 30 September 2016 28th October 2016

Property Development

Business Review

Property Development Revenue from Property Development (S$’m) 9M2016 – Total S$248.0

9M2015 – Total S$336.9

14

Decrease in revenue by 26% from S$336.9m in 9M2015 to S$248.0m in 9M2016 mainly from the absence of revenue recognition of $141.4m on completion from Centropod@Changi, a commercial development project that obtained TOP in January 2015.

26%

$3.6

$141.4

$4.3 $2.3 $16.8 $18.2

$59.9

$90.4

TOP Jan 15

$16.0

$68.0 $46.3 $45.5

$24.0

$48.2

$0.0

$20.0

$40.0

$60.0

$80.0

$100.0

$120.0

$140.0

$160.0

Space@Kovan Centropod@Changi

Sunnyvale Trilive LIV on Wilkie LIV on Sophia Whitehaven Jade Residences

Business Review

Project name

Type of

development

Group

stake

Total units

in project Unit sold

Attributable total

sale value (i)

Attributable revenue

recognised up to 30

Sept 2016

Balance attributable

progress billings to

be recognised from

4Q2016

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

Singapore

1 Eon Shenton Office 20% 98 100% $ 60.1 $ 42.7 $ 17.4

Res identia l 20% 132 96% $ 38.4 $ 27.3 $ 11.1

Shop 20% 23 100% $ 4.8 $ 3.4 $ 1.4

2 Jade Res idences Res identia l 100% 171 100% $ 216.7 $ 207.4 $ 9.3

Shop 100% 2 100% $ 1.7 $ 1.6 $ 0.1

3 Whitehaven Res identia l 100% 120 95% $ 142.8 $ 139.1 $ 3.7

Shop 100% 1 100% $ 1.2 $ 1.2 -

4 LIV on Sophia Res identia l 90% 64 100% $ 78.5 $ 75.3 $ 3.2

5 LIV on Wi lkie Res identia l 90% 81 86% $ 89.9 $ 68.9 $ 21.0

6 Sunnyvale Res idences Res identia l 100% 30 63% $ 29.4 $ 21.9 $ 7.5

7 Tri l ive Res identia l 85% 222 80% $ 171.9 $ 62.6 $ 109.3

Shop 85% 2 50% $ 0.7 $ 0.3 $ 0.4

8 Stra i ts Mans ions Res identia l 100% 25 84% $ 38.7 - $ 38.7

Malaysia

9 Wisma Infini tum Res identia l 47% 423(ii)61% $ 43.7 - $ 43.7

Australia

Sydney

10 The Hens ley, Potts Point Res identia l 100% 44 84% $ 60.9 - $ 60.9

Shop 100% 1 100% $ 1.1 - $ 1.1

11 Octavia , Ki l lara Res identia l 100% 43 88% $ 44.5 - $ 44.5

South Brisbane

12 New World Towers , Peel Street Res identia l 40% 195(iii)

52% $ 25.9 - $ 25.9

Total 1,677 $ 1050.9 $ 651.6 $ 399.2

Pre-Sale Revenue to be recognised by projects (S$’m) – 9M2016

(i) Includes Option to Purchase granted up to 19 October 2016 (ii) Represents Block A of the development, an additional 331 units in Block B is pending launch (iii) Represents Tower 1 of the development, Tower 2 with an estimated 240 units is pending launch

Business Review

16

Development Land Bank

(1) The acquisition is subject to and conditional upon the obtaining of an Order for Sale from the Strata Titles Board or the High Court (as case may be) approving this sale and purchases, if necessary.

(2) The properties are currently zoned as “Industrial” by the relevant Australian authorities. A decision to on-sell or redevelop the land will be made by the joint venture upon successful rezoning of the property for commercial and residential use.

Location / Description Proposed Development Approximate

Land Area (sqm)

Approximate Gross Floor Area (sqm)

Group’s stake

Approximate Attributable

Gross Floor Area (sqm)


Land Cost (SGD)


Land Cost (foreign

currency)

Singapore

1 178 & 180A, 180, 182

& 184 Jalan Eunos

48 units of Residential

Development 2,315 3,242 100% 3,242 S$25.2m NA

2 211 – 223A Pasir

Panjang Road (1) Residential Development 2,856 3,998 100% 3,998 S$33.3m NA

Overseas

1

54 & 85 Bracks Street,

North Fremantle,

Australia (2)

Industrial land; to be

rezoned for commercial and

residential use

45,456 TBC 20.2% TBC S$12.8m AUD11.9m

2

14 Cowper & 8 Elger

Street, Glebe,

Australia

248 units of Residential

Development 7,125 18,960 100% 18,960 S$69.7m AUD67.4m

3 Jalan Kramat Raya No

110, Jakarta Indonesia Commercial Development 1,703 7,152 49% 3,504 S$3.3m IDR33.4b

Total 59,455 S$144.3m

Business Review

Hotel Ownership


17

Business Review

GMRH RevPar decreased by 6% to S$144 in 9M2016 from S$153 in 9M2015 Noku Kyoto Hotel RevPar at S$163 in 9M2016

Hotel Ownership – 9M2016 AOR, ARR & RevPar

18

92.5%

88.0% 86.2%

94.2% 94.6% 89.9%

86.1%

91.2% 89.6% 89.7% 90.4%

50.1%

$154

$200

$147 $166

$188 $200

$191 $185 $169 $171

$159

$326

$143 $176

$127 $157

$178 $180 $165 $168

$152 $153 $144

$163

$-

$50

$100

$150

$200

$250

$300

$350

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

90.0%

FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 9M2015 9M2016

AOR - GMRH

AOR - Noku

ARR - GMRH

ARR - Noku

RevPar -GMRH

RevPar -Noku

Business Review

8.5 11.7 10.0 10.3 11.7 13.1 10.9 12.0 10.9 11.7

9.1

12.6 8.7 11.0

12.0 12.4

11.5 11.5 10.7 11.9

9.8

12.5

9.0

11.8 12.5

13.1

12.2 12.5

11.7 11.4

9.9

11.7

9.9

11.4

12.3 11.6

11.8 11.9

11.2

$0

$10

$20

$30

$40

$50

$60

FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016

Q4

Q3

Q2

Q1

$48.5

$37.6

$44.5

$48.5 $50.2

$46.4 $47.9

$37.3

Hotel Ownership – 9M2016 Hotel Revenue (S$m) Hotel revenue increased 5% in 9M2016 to S$35m from S$33.3m in

9M2015 mainly due to contributions from Noku Kyoto Hotel of S$3.7m

19

5%

$44.5

$35.0

Business Review

Hotel Ownership – 9M2016 Hotel Net Operating Profits (“NOP”) (S$m)

Hotel net operating profit decreased 14% in

9M2016 to S$8.9m from S$10.4m in 9M2015

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

3.6 5.3 3.4 3.9 4.8 5.4 3.7 4.5 3.3 3.3

3.9

5.8

3.0 4.6

5.0 4.8

4.2 4.0

3.3 2.8

4.3

5.4

3.2

4.7

5.4 5.2

4.4 4.7

3.8 2.8

5.0

5.1

3.7

4.5

5.2 4.2

4.3 4.3

3.3

$0

$5

$10

$15

$20

$25

FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016

Q4

Q3

Q2

Q1

$21.6

$13.3

$17.7

$20.4 $19.6

$16.6 $17.5

$16.8

$13.7

$8.9

14%

21

Business Review

Hotel Name Location Group's

stake Tenure

Approximate Land area

(sqm)

Attributable Gross

Floor Area (sqm)

No. of rooms

Commencement of hotel

operation/ Estimated

completion date

Hotel under development in Phuket

48/13 Moo 6, Soi Sai-Namyen, Chaofa Road, Chalong Subdistrict, Mueang District

100% Freehold 46,878 TBC Approx. 92

rooms/villas 2019

Roxy Maldives Resort

Island of Kudafunafaru, Noonu Atoll, Maldives

100% Remaining 40 years

leasehold 89,896 TBC 50 villas 2H2017

Total 136,774

Noku Roxy Hotels under development/renovation

Business Review

Property Investment


22

Business Review

$1.8 $1.0

$1.5

$1.6

$1.7 $1.6 $1.7 $1.8 $1.4 $1.3

$4.9

$10.4

$8.0 $8.0

$0.0

$2.0

$4.0

$6.0

$8.0

$10.0

$12.0

$14.0

FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 9M2015 9M2016

59 Goulburn Street

Roxy Square

Kovan Centre

$3.3 $2.6

$12.2

$9.4 $9.3*

Property Investment – 9M2016 Revenue (S$’m)

23

Rental income decreased 1% in 9M2016 to S$9.3m from S$9.4m in 9M2015

*Excludes rental income from 117 Clarence Street as it is equity accounted under share of results of associates

$6.6

Business Review

(1) Based on latest valuations as of 30 June 2016 (2) Excludes 5 units which are for owner-use premises

24 59 Goulburn

Street

Location Description Group’s

stake

Net Lettable Area/ Floor Area (sqm)

Occupancy (%) as at 30 Sep

2016 (on lettable

area)

Valuation (1)

($)

Estimated Total Annual

Gross Income (S$)

Held by a subsidiary company

1 50 East Coast Road, Roxy Square, Singapore

47 shop units (2) 100% 2,352 87% S$70.3m $1.8m

2 59 Goulburn Street, Sydney, Australia

28-Storey commercial

building 100% 19,407 100%

S$126.2m (A$121.5m)

$10.6m

Total 21,759 S$196.5m

Held by an Associate company

1 117 Clarence Street, Sydney, Australia

14-Storey commercial

building 50% 12,517 94% S$91.4m

(A$88.0m) $7.2m

Total 12,517 S$91.4m

Investment Properties

117 Clarence Street

Roxy square

Group Borrowing


25

Group Borrowing

26

Debt Profile 30 Sep 2016 31 Dec 2015 % change

Total borrowings (S$m) S$886.4 S$807.7 10%

Fixed rate loans (S$m) S$359.1 S$384.5 -7%

Fixed rate loans as % of total loans 41% 48% -7ppt

Weighted average term for fixed rate loans

18 months 25 months -7 months

Weighted average interest rate (fixed rate loans)

3.1% 3.1% -

Weighted average interest rate (floating rate loans)

2.6% 2.8% -0.2ppt

Interest coverage ratio (times) 5.6 8.8 -36%

Group Borrowing

Development loans: (sold units) in launched projects,

$265.4, 30%

Development loans: (unsold units) in launched

projects, $121.2, 14%

Development loans: projects yet to be

launched, $49.0, 5%

Working capital loans, $147.6,17%,

MTN loan, $60.0, 7%

Repayable by Sep 2017, $100.7, 11%

Repayable from Oct 2017 to Sep 2021, $87.6, 10%

Repayable after Sep 2021, $54.9, 6%

Term Loans (Hotel, shops & office,

$243.2, 27%

27

Debt Profile as at 30 Sep 2016 (S$m)

(1) S$60.0m MTN loan is repayable in July 2018

$435.6m or 49%

Total outstanding debts of S$886.4m as of 30 Sep 2016

(1)

(2)

(2) Includes term loan of S$60.9m for 59 Goulburn Street office building.

Outlook

1. General − Advance estimates by MTI showed that the Singapore economy grew 0.6% y-o-y in 9M2016, easing from the 2.0% growth in 2Q2016 1 − The Reserve Bank of Australia expects growth to remain steady at between 2.5% and 3.5% to December 2016 2

2. Property Development − Statistics by URA indicated a decrease of 1.5% in private residential property prices in 3Q2016, compared with 0.4% decline in 2Q2016 3

− The Australia residential property price index (eight capital city, weighted average) rose 4.1% on a y-o-y basis 4

− The Group property development presale revenue was S$399.2million5, the profit of which will be progressively recognised from 4Q2016 to 2020

− Strong take-up rate of close to 85% for Straits Mansion, 88% for Octavia and over 84% for The Hensley

3. Hotel Ownership − Latest statistics from the STB demonstrated a 11.5% y-o-y growth in international visitor arrivals between January to July 2016 6

− Grand Mercure Roxy Hotel continues to see high occupancy whilst Noku Kyoto Hotel has achieved high average room rate since opening − The Group completed acquisition of a hotel and leasehold interest of an island in the Maldives with upgrading works commencing soon − The Group looks forward to continue strengthening recurring income streams

4. Property Investment − In 1Q2016, the Group completed the purchase of 117 Clarence Street, Sydney, Australia, with a 50% shareholding interest − The Group’s investment in Goulburn Street has continued to contribute strong recurring income to our Property Investment segment − The Group will continue to actively look for acquisitions and investment opportunities that offer high yield potential

5. Strong cash and cash equivalents of S$238.7 million.

6. Net gearing remains healthy at 0.6 time notwithstanding the completion of acquisition of properties in Australia and Singapore in 1Q2016 and Maldives resort in 2Q2016.

7. Barring any unforeseen circumstances, the directors expect the Group to be profitable in 2016.

28

1 Singapore’s GDP Grew by 0.6 Per Cent in the Third Quarter of 2016 – Ministry of Trade and Industry, October 14, 2016 2 Economic Forecasting at the Reserve Bank of Australia, April 6, 2016 3 Private home prices declined by 0.4% in 3Q2016: URA – The Edge Property, October 3, 2016 4 Residential Property Price Indexes: Eight Capital Cities – Australian Bureau of Statistics, September 20, 2016 5 As at October 19, 2016 6 International Visitor Arrivals Statistics – Singapore Tourism Board, September 8, 2016

ROXY-PACIFIC HOLDINGS LIMITED Results Announcement 3rd Quarter Ended 30 September 2016 28th October 2016

STRIKING A BALANCE FOR SUSTAINABLE

GROWTH

THANK YOU

29

roxy-pacific holdings limited...share of results of associates rise 13% to s$4.0 million (3q2015:...

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