Financial Review
Overview
Group revenue at $154.2 million was 9.2%
higher than 2013, with Healthcare reporting
an 18.1% growth in revenue. Profits from both
Healthcare and Investments grew 31.0% and
17.5% respectively. Group earnings increased
10.1% to $118.8 million due to higher profitability
from Healthcare, higher investment income and
higher share of results from associated companies.
With net higher earnings registered for the year,
earnings per share increased to 54.3 cents (2013:
49.4 cents). Net assets per share increased to
$12.82 (2013: $11.18) with the increase in
earnings and higher market valuations of available-
for-sale financial assets.
Segment Profits Before Interest Expense and Tax ($m)
2013
2014
70.0
60.0
50.0
40.0
30.0
20.0
10.0
0
Healthcare
Leisure
Property
Investments
25.9
3.8
33.9
2.5
13.4
57.3
67.3
Return on Assets Employed
The Group applies a Return of Assets Employed
(“ROA”) measure to evaluate the performance
of its business operations. The ROA measures
profitability of assets utilised by the various
operations.
In 2014, the Group’s ROA maintained at 4.6%,
from higher profitability of Healthcare, offset by
decrease in profit from Leisure and Property. ROA
of Healthcare division improved from 25.6% to
32.7%. The decline in ROA of Leisure to 4.4%
is attributable to lower visitorship and intense
competition. ROA of Property decreased to 5.6%
from the net increase in fair value of investment
properties and decrease in profit from lower
occupancy rate. ROA of Investment increased
slightly to 3.1%, consistent with the higher
dividend income received during the year and
larger asset base due to higher market valuations.
Return on Assets Employed (%)
2013
2014
35.0
30.0
25.0
20.0
15.0
10.0
5.0
0
Group
Healthcare
Leisure
Property
Investments
4.6
32.7
6.3
5.6
3.1
3.0
4.6
25.6
4.4
6.3
12.4
Healthcare
Healthcare’s revenue of $122.2 million increased 18.1%
compared to prior year. Higher sales in key markets during
the year also resulted in higher revenue contribution
especially from Asian countries. Operating profits continued
to grow 31% above 2013 to $33.9 million as lower cost
of raw materials and favourable foreign currency rate
helped to improve margins.
Leisure
The number of visitors to the aquariums declined by 20.2%
with weaker tourist sentiments and intense competition at
the Oceanariums in the Group. Leisure contributed a lower
revenue of $15.6 million in 2014 compared to $20.5
million in 2013. Continuous upgrading of facilities and
displays at UWP are done to maintain competitiveness.
Property
Property was affected by a lower occupancy rate.
Rental revenue contributed by Property decreased
4.7% to $16.4 million and profit from its operations
decreased 7.6% to $12.4 million. Property also recorded
a lower net fair value gain of investment properties of
$3.1 million (2013: $10.7 million).
Investments
Investment income increased 10.4% from 2013 due to
higher dividends received from our investment portfolio.
The fair value of the Group’s investment portfolio increased
from $1,934.7 million as of 31 December 2013 to
$2,311.5 million as of 31 December 2014 mainly due to
the increase in share prices of main equity investments. A
net unrealized gain of $279.8 million arising from changes
in the fair value of investments has been recorded in the
fair value reserve account in 2014.
Healthcare Sales by Region ($m)
80.0
70.0
60.0
50.0
40.0
30.0
20.0
10.0
0
America
Europe
Middle East
Asia
11.3
11.5
14.5
12.1
14.7
17.3
66.0
78.3
2013
2014
2013
2014
Visitorship of Aquariums (’000)
1,200
1,000
800
600
400
200
0
2013
2014
1,134
905
2013
2014
Property (Building Occupancy Rates)
100%
80%
60%
40%
20%
0%
Singapore Properties
Others
97.5
85.0
74.5
66.1
Cost
Fair Value
Investments (Cost vs Fair Value) ($m)
2,500
2,000
1,500
1,000
500
0
2013
2014
1,934.7
513.3
602.8
2,311.5
Haw Par Corporation Limited
30
annual report 2014
31
