Q&As for 2Q10 Results

A. Financial

1. Following a string of local companies seeking financing throughannouncing debt issuance

programmes, does KLL have any fund-raising plans to establish more multicurrency medium term
note programme in the near term?

 Input:

Suggested reply : Our financial position is healthy, with net debt/equity ratio of 0.28x, about
$660 664 million in cash and cash equivalents, funds from operations (eg progress billings)
as well as considerable unutilized credit facilities (MTN: US$499 million unutilized). As
markets conditions can be volatile, it is difficult for companies to answer categorically such a
question. Other factors that may come into play include investment opportunities and
interest rates environment.
 Formatted: Indent: Left: 0.75", No bullets or numbering

2. How is the acquisition of Lakeside Drive site being funded?

 Input :

 Suggested reply: About $75.8m from the rights issue proceeds have been utilised to fund 25%
of the consideration for the Lakeside Drive site. The remaining 75% of the consideration will
be funded through bank borrowings??

3. How much of the rights issue proceeds have been utilised to date?

 Input :

 Tweaked previous response : About $590.8666.6m of the $700.6m net proceeds have been
utilised, mainly for subscription of K-REIT Asia’s rights issue ($280.7m), capital contributions
and development expenditures for our projects in Singapore, China, Vietnam and Indonesia
($297.957m), and about $75.8m to fund 25% of the consideration for the Lakeside Dr site.

4. What is the reason for replacing the share option scheme with the performance share plan and
restricted share plan?

 Input :

 Previous response : The new share plans will help to increase KLL’s flexibility and
effectiveness in its continuing efforts to reward, retain and motivate key senior

IR&R/12 July 2010 1

 management and employees to achieve superior performance and deliver long-term
shareholder value.

5. What is KLL’s dividend policy? What is the rationale of retaining the Dividend Reinvestment
Scheme (DRS)?

 Previous response : The DRS helps the Company to conserve cash to capitalise on acquisition
opportunities and allows shareholders to reinvest in the Company without incurring
transaction costs.

[For internal info: FY09 dividends of $114.4m constitute about 46% of $250.2m PATMI
before net fair value gain on investment properties and gain on acquisition of additional
interest in K-REIT Asia. Previously, the Company aims to distribute up to one-third of net
recognised profits to shareholders.]

6. Recently, there was some media discussion on whether the number of directorships should be
regulated. Does KLL have a cap on the number of directorships that its directors hold?

 Previous response : The internal guideline is that Directors should not serve on more than
six principal boards and is a policy that a non-executive Director serves a maximum of two
three-year terms of appointment. However, the Board will exercise discretion to extend and
retain services of those Directors who have made invaluable contributions to the Company
as it is difficult to attract talents with the required skills and expertise.

[For internal info: Mrs Koh-Lim Wen Gin was appointed as Director to the company on 20
Jan 2010. She hasHer extensive experience in urban master planning and development will
lend strategic counsel and insights to further enhance KLL’s expertise in building townships
and other large-scale integrated projects]

7. What is the possibility of another equity fund raising exercise this year?

 Input :

 Tweaked previous response : Our current financial position is healthy, with about $660
million in cash, funds from operations (eg progress billings) as well considerable unutilized
credit facilities (MTN: US$499 million unutilized).

IR&R/12 July 2010 2

 As markets conditions can be volatile, it is difficult for companies to answer categorically
such a question. Other factors that may come into play include investment opportunities
and interest rates environment.

8. Sales revenue in 1H 10 was $34m or 8.6% lower compared with 1H 09. What attributed to the
decline?

 Input :

 Extracted from 2Q 10 financial statements : The decrease was largely due to lower revenue
reported by the property trading segment (-$45.5m) and property investment segment (-
$1.8m); partially offset by higher revenue contribution from fund management (+$6.8m)
and hotels and resorts, property services and others segment (+$6.5m).

9.7. Why did administrative and other expenses decline by 17.5% to $42.4 million in 1H 10?

 Input :

 Extracted from 2Q 10 financial statements : It was due mainly to the write-back of staff cost
provision in 1H 10, as well as a foreign exchange gain in 1H 10 compared to a loss in 1H 09.
Formatted: Left, Indent: Left: 0.5", Space After: 10 pt,
Line spacing: Multiple 1.15 li, No bullets or numbering
 [For internal info : Write-back of $xxm in staff cost provision in 1H10.]
Formatted: Indent: Left: 0.75", No bullets or numbering

10.8. Are there any write-back of cost provision in 1H 10? If so, how much and for what
purposeWhich projects accounted for the $1.5m write-back of provisions for properties held for
sale in 1H10?

 GFA’s input : Yes, breakdown as below:The write-back was mainly from The Promont and
Madison Residences.

[For internal info : The Promont: $1,272k and

The Madison Residences: $272k.]
These provisions that were made previously were written back upon sale of units

11.9. Share of profit from associated companies rose by 34.2% to $95.5 million in 1H 10. What
accounted for the higher profit?

 Input :

 Extracted from 2Q 10 financial statements : Higher profit contribution in 1H 10 came mainly

from Reflections and Caribbean at Keppel Bay, Marina Bay Suites and K-REIT Asia.

IR&R/12 July 2010 3

12.10. Why did 1H 10 taxation increase by 67.5% to $43.7 million?

 Input :

 Extracted from 2Q 10 financial statements : This increase is in line with higher profits
achieved. Included in 1H 09 was the write-back of provision for deferred tax ($2.1m)
resulting from the reduction in Singapore corporate tax from 18% to 17% in 2009.

13.11. Net profit before tax rose by 41.734.5% to $134.87.1 million in 1H 10. Can you explain the
reason for the higher net profit?

 Input :

 Extracted from 2Q 10 financial statements : It was primarily due to the strong performance
of the Group’s associated companies, namely Reflections and Caribbean at Keppel Bay,
Marina Bay Suites and K-REIT Asia in Singapore, . The improvement was also contributed by
higher profits from several residential projects in China and Vietnam; better rental yields
from investment properties; as well as higher acquisition and management fees earned
byfrom the fund management segment. In addition, higher fees earned by the Group’s
marketing and property management arms, dividend income from equity investments and
the write-back of cost provisions in 1H 10 contributed to the increase in profits.

14. Which projects accounted for the $758,000 write-back of provision for properties held for sale in
2Q 10?

 Input :

15.12. Why did investment properties increase from $1.4 bn as at end-2009 to $1.48 bn as at end-
June 2010?

 Input : This was due mainly to additional development expenditure incurred for Ocean
Financial Centre.

16. Investments by associated companies decreased from $1.432 bn as at end-2009 to $1.429 bn as at

end-Jun 10. What were the reasons?

 Input :

17.13. Why did long-term investments rise by 7.8% from end-2009 to $73.2 million as at end-Jun 10?

 Input : This was due mainly to additional investment in Alpha Asia Macro Trends Fund.

18.14. Why did the Group’s properties held for sale increase by 10.4% from end-2009 to $1.27 bn as
at end-Jun 10?

IR&R/12 July 2010 4

  Input :

 Extracted from 2Q 10 financial statements : This was due mainly to the acquisition of the
Lakeside Drive site, higher development cost incurred, as well as higher profit recognised
mainly from China projects; offset by the progress billings received during the period.

19.15. Why did 1H 10 EBITDA rise by $21.8m or 26.7% when 1H 10 sales revenue was $34m or 8.6%
lower compared with 1H 09?

 GFA’s input : The increase in higher EBITDA was higher mainly due to the reduction of cost
resulted from the completion of the development projects (The Tresor and The Sixth
Avenue Residences) in the financial yearFY09. In addition, there was a write-back of cost
provision in 1H 10, as well as an exchange gain in 1H 10 versus a loss in 1H 09.

20.16. Which projects contributed to the higher net profit of $104.4 million from property trading in
1H 10?

 Input :

 Extracted from 2Q 10 financial statements : The increase in profit was due mainly to strong
performance of the Group’s associated companies, mainly Reflections and Caribbean at
Keppel Bay and Marina Bay Suites, partly offset by lower profit contribution from Marina
Bay Residences, which received TOP in April 10, and higher profit from several residential
projects in China and Vietnam.

21.17. Net profit from property investment was higher at $27.1 million in 1H 10 compared with $19.7
million in 1H 09. What contributed to the higher profit?

 Input :

 GFA’s input : The increase was due mainly to higher profit contribution from K-REIT Asia,
and higher rental income and occupancy achieved byfrom Barclays House in Jakarta. Also
included in 1H10 were profits from the sale of 7 units at Orion Industrial Building.

18. What was the reason for the lower rental income from Ocean Towers in 1H10?

IR&R/12 July 2010 5

  This was due to lower rental and occupancy rates as we run down the tenancies of the
building in view of its intended demolition.
Formatted: Font: Bold, Italic
22.19. Net profit from fund management was significantly higher than in 1H 10 at $15.7 million in Formatted: Normal, No bullets or numbering
1H10. Why is that so? What was the split in profit between K-REIT Asia Management and Alpha?

 GFA’s input : The increase was mainly due to higher acquisition fees received by K-REIT Asia
Asset Management, as well as higher management fees received by Alpha Investment
Partners.

23. What was the reason for the higher losses of $8.6 million in 2Q 10 from hotels/resorts and others?

 Input :

 Extracted from 2Q 10 financial statements : Despite recording higher revenue in 2Q 10 from

higher sales, lease commission and project management fees, net losses deepened mainly
due to higher net interest expense.

24.20. On a half yearly basis, however,N net losses from hotels/resorts and others improved from
$15.8 million in 1H 09 to $12.4 million in 1H 10. What were the reasons for the improvement?

 Input :
 Extracted from 2Q 10 financial statements : The improvement was mainly due to higher
revenuesales and lease commission earned by the Group’s marketing activities, higher
project management fees and the, write-back of provision of costs, partly offset by higher
net interest expense.

25.21. What led to the higher net profit of $49.5 million for from overseas in 1H 10?

 GFA’s input : The increase was mainly due to higher profit contributions from several trading
projects in China and Vietnam. Formatted: Font: Bold, Italic, Font color: Auto

 [For internal info : (The Arcadia at Tianjin : $21.3m, Villa Riviera in Shanghai: $7.2m,
Stamford Ctiy in Jiangyin: $3.2m, The Estella in HCMC: $2.1m.), Elita Promenade in
Bangalore: $1.6m; Jakarta Garden City: $1.6m; TheBotanica in Chengdu: $3.7m; as well as
new profit from The Springdale: $1.8m)

26.22. On overseas attributable profit, what was the percentage of profit derived from China,
Vietnam and India in 1H 10? How much of the overseas attributable profit was from property
trading and property investment?

 Input :

 Extracted from 2Q 10 financial statements : About 36.87% of the Group’s net profit was
derived from overseas. The bulk of overseas profit came, mainly from China.

IR&R/12 July 2010 6

 [For internal info :
Net Profit ($m) 1H2010 1H2009 % Chg Formatted: Space After: 0 pt, Line spacing: single
Singapore 85.3 68 25.4 Formatted Table
Overseas 49.4 27.1 82.3 Formatted: Space After: 0 pt, Line spacing: single
China 37.2 17 188.8 Formatted: Space After: 0 pt, Line spacing: single
Vietnam 8.1 7.8 3.8 Formatted: Space After: 0 pt, Line spacing: single
India 1.9 1.3 46.2
Formatted: Space After: 0 pt, Line spacing: single
Indonesia (0.4) 0.5 nm
Formatted: Space After: 0 pt, Line spacing: single
Others 2.6 0.5 440
Formatted: Space After: 0 pt, Line spacing: single
Total 134.7 95.1 41.6
Formatted: Space After: 0 pt, Line spacing: single

27.23. What is the reason for the rise in net debt/equity ratio to 0.28x as at end-June 2010 from 0.22x Formatted: Space After: 0 pt, Line spacing: single

as at end-2009? How much of the Group’s borrowings are due in the next two years? How much
of the debt is fixed?

 Input :

 Extracted from 2Q 10 financial statements : This was due mainly to the utilisation of rights
proceeds for capital injection into Tianjin Eco-City, the residential township in Hunnan
District, Shenyang, tender deposits and partial land payment for the Lakeside Drive
residential development, as well as for funding of the Marina Bay projects.

 About 21% of the Group’s borrowings are due in 2H2010 and 2011.

[For internal info: Debt Maturity Profile as at 30 June 2010]

Maturity Amount ($m) % of Total Debt

Due in 2H2010 344 19%
Due in 2011 34 2%
Due in 2012 385 22%
Due in 2013 653 37%
Due in 2015 105 6%
Rolling 252 14%
Total Debt 1,773 100%

Denominating Currency Amount ($m) % of Total Debt

Singapore dollars 1,589 90%
US dollars 106 6%
Indonesian Rupiah 46 3%
Indian Rupee 1 -
Thai Baht 10 -
HK dollars 19 1%
Vietnamese Dong 2 -
Total Debt 1,773 100%

IR&R/12 July 2010 7

 Type of Debt Amount ($m) % of Total Debt
Bank borrowings 822 46%
Loans from related companies 252 14%
Convertible bonds 279 16%
MTN programme 420 24%
Total Debt 1,773 100%

 The proportion of the Group’sAbout 30% are fixed rate borrowings has decreased to about
30% as at end-June 2010, compared with about 34% as at end-March 2010.

28. What is the Group’s net cost of funds as of end-June 2010? Do you foresee the cost of debt to
increase?

 Input :

 Extracted from 2Q 10 financial statements : It is 2.09% in 2Q 10.

29.24. What is the size of KLL’s assets overseas? What is your asset allocation in China and Vietnam?

 Input : About 40.5% of KLL’s assets are overseas, with . The allocation for China and Vietnam
is accounting for 17.7% and 9.6% respectively as at end-June 2010.

[For internal info : Total Asset Allocation as at 30 June 2010]

Country Total Assets ($m) % of Total Assets

Singapore 3,934.5 59.5%
China 1,172.2 17.7%
Vietnam 633.4 9.6%
Indonesia 528.7 8.0%
Others 348.5 5.2
Total 6,617.3 100%

30.25. What is the proportion of total assets in property trading and property investment?

 Input : The proportion is aboutAbout 55.7% of total assets are in property trading and 36.9% in
property investment.

[Add in some questions on cash flow statement]

IR&R/12 July 2010 8