Corporate Update 1H FY2014 Financial Results 28 August 2014
1H 2014 Key Highlights Achieved 2Q FY14 PATMI of RM89.5m, +132.5% y-o-y Achieved 1H FY14 PATMI of RM97.3m, +18.5% y-o-y Total property sales amounted to RM935m Tropicana Collections Campaign garnered bookings of over RM600m Inked land sales worth RM951m, including 308.72 acres of Canal City land to Eco World on 19 Mar 2014 for RM471m 3.14 acres of land along Jalan Bukit Bintang to Agile Property Holdings on 8 May 2014 for RM448m Strategic Initiatives JV with Agile on property development – Potential GDV of RM2.5bn to RM3.0bn JV with LAPIS on International School – RM235m investment Net Gearing of 0.59x @ Jun 2014 1H Launches of RM590m Appointment of Lim Lai Seng as Chief Financial Officer on 28 August 2014 Previously Group Financial Controller at IOI Corp Bhd Highest Profit Growth Company in the Property and REIT Sector (compounded 3-year PBT) The Edge Billion Club Corporate Awards 2014 2
1H FY14 Financial Review
1H FY14 Financial Performance Snapshot FYE Dec 31 2QFY14 2QFY13 % chg 1QFY14 % chg 1HFY14 1HFY13 % chg RM m Revenue 355.9 362.1 -1.7% 299.1 19.0% 655.0 667.4 -1.9% PBT 121.0 62.3 +94.2% 24.8 >100.0% 145.8 129.1 +12.9% Gains (Sale/FV) (69.9) (14.4) - (69.9) (72.5) Adjusted PBT 51.1 47.9 +6.7% 24.8 +85.1 75.9 56.6 +34.1% PATMI 89.5 38.5 >100.0% 7.8 >100.0% 97.3 82.1 18.5% Net EPS ^ 6.4 4.3 +48.8% 0.7 >100.0% 7.5 9.7 -22.7% PBT margin 34.0% 17.2% 8.3% 22.3% 19.3% PATMI margin 25.1% 10.6% 2.6% 14.9% 12.3% ^ Based on weighted average share base of 1,293.5m shares for 1H FY14 and 843.0 m shares for 1H FY13 2QFY14 revenue +19% to 355.9m q-o-q while adjusted PBT rose 85.1% to RM51.1m Relatively low tax rate in 2QFY14 of 13.1% RM58.6m gain from disposal of investment properties during the period attracted zero to 5% tax 1HFY14 revenue rose 26% y-o-y after adjusting for the impact of sale of land held for development to 1HFY13 revenue of RM149.0m Adjusted PBT in 1HFY14 +34.1% to RM75.9m 4
Segmental Analysis 6 months ended 30 June Property Property Invst & Invst Holding & Consolidated (RM m) Development Resort Others 2014 2013 2014 2013 2014 2013 2014 2013 Revenue 468.1 582.5 72.0 69.0 115.0 15.8 655.0 667.4 Results from operations 71.1 121.5 89.5 42.2 1.6 (8.5) 162.2 155.1 Gains from Land Sales & - (60.4) (58.6) (12.1) - - (58.6) (72.5) Fair Value Adjustments Adjusted Results from ops. 71.1 61.1 30.9 42.2 1.6 (8.5) 103.6 82.6 Net finance cost (12.3) (11.7) (7.0) (2.6) (11.5) (14.7) (30.8) (29.1) Associates - - - - 0.3 4.1 0.3 4.1 Jointly controlled entities - - - 14.2 (1.1) 14.2 (1.1) PBT 58.8 109.8 82.5 39.5 4.5 (20.2) 145.8 129.1 Property Development Adjusted results from operations were up 16.4% in 1HFY14 Sustained by ongoing projects in Central Region (Tropicana Gardens and Metropark) and Southern Region (Tropez and Bora phases at Tropicana Danga Bay) Property Investment & Resort segment boosted by gain on sale of land amounting to RM58.6m Sharp improvement in performance of Investment Holding segment attributed to full impact of consolidation of Tenaga Kimia Sdn Bhd as a subsidiary effective May 2013 onwards 5
Balance Sheet Review FYE Dec 31 Jun 30 Dec 31 % chg Net assets per share at RM1.92 RM m 2014 2013 Increase in share base arising from Non Current Assets 3,632.6 3,567.7 +1.8 RCULS conversion and issuance of new ESOS shares Current Assets 2,366.5 1,858.0 +27.4 Total Assets 5,999.1 5,425.7 +10.5 Current Liabilities 1,321.1 883.1 +49.6 Non Current Liabilities 1,790.5 1,808.6 - Total Liabilities 3,111.6 2,691.7 +15.6 Shareholders’ Equity 2,887.5 2,734.0 +5.6 Total Equity & Liabilities 5,999.1 5,425.7 +10.6 Total Cash 402.1 497.2 Net Gearing (x) 0.59 0.55 Total No. Of Shares (m) 1,369 1,084 Net Asset / Share 1.92 2.32 6
Latest Net Gearing At 0.59x Gross Debt RM m Net gearing remains manageable at 0.59x 2,050 To improve once proceeds from land 2,000 sales, including partial disposal of 1,950 Tropicana Aman and Bukit Bintang land are realised 1,900 2,014 • Gross proceeds total RM951m 1,850 1,929 1,918 1,866 1,861 1,800 1,851 1,750 Q1 FY13 Q2 FY13 Q3 FY13 Q4 FY13 Q1 FY14 Q2 FY14 times 0.9 0.85 0.82 0.8 0.8 0.75 0.75 0.72 0.71 0.7 0.66 0.64 0.59 0.6 0.55 0.54 0.5 Q1 FY13 Q2 FY13 Q3 FY13 Q4 FY13 Q1 FY14 Q2 FY14 Gross Gearing Net Gearing 7
Quarterly Financial Snapshots DEVELOPMENT SALES (RM m) GROUP REVENUE (RM m) 500 900 800 82 400 700 50 94 102 96 600 300 23 35 90 500 125 200 853 400 804 289 269 261 260 300 209 100 540 145 200 395 0 260 249 100 Q1 FY13 Q2 FY13 Q3 FY13 Q4 FY13 Q1 FY14 Q2 FY14 0 Prop. Dev. Land Sales Others Q1 FY13 Q2 FY13 Q3 FY13 Q4 FY13 Q1 FY14 Q2 FY14 PROFIT BEFORE TAX (RM m) EARNINGS PER SHARE (sen) 350 25 300 20 250 208 15 200 17.9 150 10 100 5 117 121 12 50 1.2 6.4 5.5 5.3 67 50 0.7 49 3.1 2.2 25 0 0 Q1 FY13 Q2 FY13 Q3 FY13 Q4 FY13 Q1 FY14 Q2 FY14 Q1 FY13 Q2 FY13 Q3 FY13 Q4 FY13 Q1 FY14 Q2 FY14 Core Profits Fair Value Adjsts Core EPS FV Adjsts 8
Sizeable Land Disposals Signed & Pending Completion 1H FY14 land transactions to raise gross proceeds of RM951m on completion Targeting more divestments of sizeable assets to improve gearing position Gross Book Value Sale Price Net Gain Landbank Sold Acquired Acres Status Proceeds (RM/psf) (RM/psf) (RM m) (RM m) SPA signed, Canal City land* 2013 308.72 18 35 471 170 19 Mar 2014 SPA signed, Jalan Bukit Bintang, KL 2012 3.14 1,609 3,280 448 145 8 May 2014 Kota Kinabalu, Sabah SPA signed, 2012 1.91 303 380 32 1 (2 parcels) 18 Jun 2014 Subtotal 951 316 * Partial disposal 9
Sales Update
1H FY14 Sales Of RM935m RM m 2,160 Achieved RM935m sales in 1H FY14 57% of sales from Central Region projects • Driven by Tropicana Metropark & Tropicana Heights 935 967 Targeting RM2bn sales in FY14 347 To be driven by RM2.6bn new launches in 2H FY14 2011 2012 2013 1HFY2014 1H FY14 SALES RM m Central Region 2% Breakdown of 1H FY14 Sales Northern Region 18% 206 Southern Region 185 172 East Malaysia 127 57% 23% 44 44 39 37 32 19 15 15 T. Heights Trop. Trop. Danga 218 Others Penang Trop. Danga Trop. Trop. Trop. Trop. Trop. 11 Metropark Bay Macalister World City Cove Cheras Gardens Landmark Avenue Grande
High Unbilled Sales At RM2.7bn 2,691 2,388 2,214 Sustained high unbilled sales of 2,183 RM2.691bn as at 30 June 2014 1,647 Will continue to focus on project execution and delivery to translate this to revenue 2QFY13 3QFY13 4QFY13 1QFY14 2QFY14 Breakdown of Unbilled Sales As At 30 Jun 14 Central Region UNBILLED SALES As At 30 Jun 14 Northern Region 518 Southern Region 1% 469 455 East Malaysia 18% 438 321 181 57% 24% 125 60 48 41 33 3 Penang Trop. Trop. Trop. Trop. Trop. 218 Trop. Others Trop. Trop. Trop. World City Gardens Metropark Danga Bay Avenue Heights Macalister Cheras Danga Landmark Grande 12 Cove
RM3.2bn planned launches in FY14 RM2.6bn planned launches in 2H FY14 Strategic focus on Central Region launches, with estimated projects GDV of RM2.2bn Includes 2 nd phase of terrace and cluster homes in Tropicana Heights and maiden launch in Tropicana Aman 1H FY14 Launches Development Estimated FY14 Target Launch 2H FY14 To Be Launch Value Take-up Rate Launches Period Launched (RM m) (%) (RM m) Tropicana Aman 381 4Q 2014 - - 381 Tropicana Heights 742 1Q&4Q 2014 270 83% 472 Tropicana Gardens 474 4Q 2014 - - 474 The Residences 832 4Q 2014 - - 832 Tropicana Danga Bay 216 4Q 2014 - - 216 Penang World City 235 4Q 2014 - - 235 218 Macalister 320 1Q 2014 320 57% - GRAND TOTAL 3,200 590 2,610 13
RM2.6bn Upcoming Launches in 2H FY14 2H FY14 Launches Project No. of Project Development (RM m) Type Units Details Tropicana Aman 381 Terrace Homes 432 Maiden launch Tropicana Heights 472 Terrace & Cluster Homes 396 Phase 2 of Fairfield Residences Tropicana Gardens 474 Serviced Apartments 454 RT3; after Arnica and Bayberry At KL City Centre. Part of mixed The Residences 832 Serviced Apartments 350 development featuring W Hotel Tower 2 of Bora Residences; Tropicana Danga Bay 216 Serviced Apartments 118 Tower 1 launched in 3Q 2013 Block E & F, Tropicana Bay Penang World City 235 Condominiums 437 Residences. Blocks A-D launched in 3Q 2013 GRAND TOTAL 2,610 2HFY14 GDV BY PRODUCT TYPE 2HFY14 GDV BY REGION 9% 33% Landed Products Central 8% HighRise Products Southern Northern 67% 83% 14
Strategic Initiatives
St Joseph’s Institution International (Malaysia) Target Gross Floor Student Construction SJII (Malaysia) Acres Completion Area Capacity Progress Date International 6.06 333,738 sq ft 1,770 Feb 2016 5% School Offering 12-year education track Elementary School (IPC) High School (IGCSE) Senior School (IB Diploma Programme) Earthwork & Piling Works in progress Expect to open in Sep 2016 16
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