Corporate Update 1H FY2014 Financial Results 28 August 2014 1H - - PowerPoint PPT Presentation

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Corporate Update 1H FY2014 Financial Results 28 August 2014 1H - - PowerPoint PPT Presentation

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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

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28 August 2014

Corporate Update 1H FY2014 Financial Results

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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

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1H 2014 Key Highlights

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1H FY14 Financial Review

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1H FY14 Financial Performance Snapshot

FYE Dec 31 RM m 2QFY14 2QFY13 % chg 1QFY14 % chg 1HFY14 1HFY13 % chg 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
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5

Segmental Analysis

6 months ended 30 June (RM m) Property Development Property Invst & Resort Invst Holding & Others Consolidated 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 & Fair Value Adjustments

  • (60.4)

(58.6) (12.1)

  • (58.6)

(72.5) 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

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Balance Sheet Review

FYE Dec 31 RM m Jun 30 2014 Dec 31 2013 % chg Non Current Assets 3,632.6 3,567.7 +1.8 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

Net assets per share at RM1.92

  • Increase in share base arising from

RCULS conversion and issuance of new ESOS shares

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Latest Net Gearing At 0.59x

1,851 1,861 1,929 1,918 1,866 2,014 1,750 1,800 1,850 1,900 1,950 2,000 2,050 Q1 FY13 Q2 FY13 Q3 FY13 Q4 FY13 Q1 FY14 Q2 FY14

Gross Debt

0.85 0.8 0.82 0.75 0.71 0.75 0.72 0.64 0.66 0.55 0.54 0.59

0.5 0.6 0.7 0.8 0.9 Q1 FY13 Q2 FY13 Q3 FY13 Q4 FY13 Q1 FY14 Q2 FY14 Gross Gearing Net Gearing RM m times

Net gearing remains manageable at 0.59x

  • To improve once proceeds from land

sales, including partial disposal of Tropicana Aman and Bukit Bintang land are realised

  • Gross proceeds total RM951m
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Quarterly Financial Snapshots

DEVELOPMENT SALES (RM m) GROUP REVENUE (RM m) PROFIT BEFORE TAX (RM m) EARNINGS PER SHARE (sen)

145 289 269 261 209 260 125 23 102 35 50 94 82 90 96 100 200 300 400 500 Q1 FY13 Q2 FY13 Q3 FY13 Q4 FY13 Q1 FY14 Q2 FY14

  • Prop. Dev.

Land Sales Others

67 50 49 117 25 121 12 208 50 100 150 200 250 300 350 Q1 FY13 Q2 FY13 Q3 FY13 Q4 FY13 Q1 FY14 Q2 FY14 Core Profits Fair Value Adjsts

5.5 3.1 2.2 5.3 0.7 6.4 1.2 17.9 5 10 15 20 25 Q1 FY13 Q2 FY13 Q3 FY13 Q4 FY13 Q1 FY14 Q2 FY14 Core EPS FV Adjsts 249 804 853 260 395 540 100 200 300 400 500 600 700 800 900 Q1 FY13 Q2 FY13 Q3 FY13 Q4 FY13 Q1 FY14 Q2 FY14

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Sizeable Land Disposals Signed & Pending Completion

Landbank Sold Acquired Acres Book Value (RM/psf) Sale Price (RM/psf) Status Gross Proceeds (RM m) Net Gain (RM m) Canal City land* 2013 308.72 18 35 SPA signed, 19 Mar 2014 471 170 Jalan Bukit Bintang, KL 2012 3.14 1,609 3,280 SPA signed, 8 May 2014 448 145 Kota Kinabalu, Sabah (2 parcels) 2012 1.91 303 380 SPA signed, 18 Jun 2014 32 1 Subtotal 951 316 * Partial disposal

1H FY14 land transactions to raise gross proceeds of RM951m on completion

  • Targeting more divestments of sizeable assets to improve gearing position
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Sales Update

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347 967 2,160

935

2011 2012 2013 1HFY2014 206 185 172 127 44 44 39 37 32 19 15 15

  • T. Heights

Trop. Metropark

  • Trop. Danga

Bay 218 Macalister Others Penang World City

  • Trop. Danga

Cove Trop. Cheras Trop. Gardens Trop. Landmark Trop. Avenue Trop. Grande

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1H FY14 Sales Of RM935m

RM m

RM m

Breakdown of 1H FY14 Sales

Central Region Northern Region Southern Region East Malaysia

1H FY14 SALES

Achieved RM935m sales in 1H FY14

  • 57% of sales from Central Region projects
  • Driven by Tropicana Metropark &

Tropicana Heights

Targeting RM2bn sales in FY14

  • To be driven by RM2.6bn new launches

in 2H FY14

57% 23% 18% 2%

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Sustained high unbilled sales of RM2.691bn as at 30 June 2014

  • Will continue to focus on project

execution and delivery to translate this to revenue

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High Unbilled Sales At RM2.7bn

57% 24% 18% 1%

UNBILLED SALES As At 30 Jun 14 Breakdown of Unbilled Sales As At 30 Jun 14

Central Region Northern Region Southern Region East Malaysia 518 469 455 438 321 181 125 60 48 41 33 3

Penang World City Trop. Gardens Trop. Metropark Trop. Danga Bay Trop. Avenue Trop. Heights 218 Macalister Trop. Cheras Others Trop. Danga Cove Trop. Landmark Trop. Grande

1,647 2,214 2,183 2,388

2,691

2QFY13 3QFY13 4QFY13 1QFY14 2QFY14

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RM3.2bn planned launches in FY14

Development Estimated FY14 Launches (RM m) Target Launch Period 1H FY14 Launches 2H FY14 To Be Launched Launch Value (RM m) Take-up Rate (%) 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

RM2.6bn planned launches in 2H FY14

  • Strategic focus on Central Region launches, with estimated projects GDV of RM2.2bn
  • Includes 2nd phase of terrace and cluster homes in Tropicana Heights and maiden launch in

Tropicana Aman

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RM2.6bn Upcoming Launches in 2H FY14

Development 2H FY14 Launches (RM m) Project Type

  • No. of

Units Project 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 The Residences 832 Serviced Apartments 350 At KL City Centre. Part of mixed development featuring W Hotel Tropicana Danga Bay 216 Serviced Apartments 118 Tower 2 of Bora Residences; Tower 1 launched in 3Q 2013 Penang World City 235 Condominiums 437 Block E & F, Tropicana Bay

  • Residences. Blocks A-D launched

in 3Q 2013 GRAND TOTAL 2,610

2HFY14 GDV BY REGION

83% 8% 9% Central Southern Northern

2HFY14 GDV BY PRODUCT TYPE

33% 67% Landed Products HighRise Products

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Strategic Initiatives

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Offering 12-year education track

  • Elementary School (IPC)
  • High School (IGCSE)
  • Senior School (IB Diploma

Programme)

Expect to open in Sep 2016

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St Joseph’s Institution International (Malaysia)

SJII (Malaysia) Acres Gross Floor Area Student Capacity Target Completion Date Construction Progress International School 6.06 333,738 sq ft 1,770 Feb 2016 5% Earthwork & Piling Works in progress

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JV with HK-listed Agile Property Holdings Ltd (“Agile”) to develop Bukit Bintang land

  • Through 70:30 JV company owned by Agile and Tropicana respectively
  • 3.75 acres prime land in Bukit Bintang earmarked for mixed commercial development

Signing Ceremony on 8 May 2014

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JV With Agile Property Group

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Prospects & Outlook

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FY14 earnings to be underpinned by

  • 1H FY14 PATMI of RM97.3m (+18.5% y-o-y)
  • Unbilled sales of RM2.7bn
  • Focus on project execution and delivery for ongoing projects

Targeting RM2bn sales in FY14; already achieved RM935m in 1H FY14

  • New sales to be driven by RM2.6bn launches in 2H FY14
  • 83% of new launches are in Central Region, where the market remains more buoyant

Remain steadfast in our transformation strategy to unlock value through development and land disposals, and accelerate our de-gearing initiatives

  • Management team in place
  • Near term to focus more on Central Region developments, where we have >1,000 acres with

potential GDV of RM24.5bn

  • Earmarked another RM1.2bn worth of assets for disposal
  • Target to complete Canal City and Bukit Bintang land sales over the next 6-9 months

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Delivering Growth

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Strategic landbanks across Greater KL, Iskandar Malaysia & Penang Island

  • Near term to focus on unlocking value of landbank in Central Region, with potential GDV of RM24.5bn

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Sizeable Landbank To Sustain Development Activities

Breakdown by GDV Breakdown by Acreage

Total 1,888 acres Total GDV of RM70.4bn

35% 52% 13% Central Southern Northern 61% 34% 5% Central Southern Northern 1,141 651 96 RM36.4bn RM9.5bn RM24.5bn

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New Launches Interest Tenure Remaining Land (acre) Land Cost (RM m) Total GDV (RM m) Remaining GDV @ Jun 2014 (RM m) Development Period Tropicana Gardens 70% Leasehold 14.1 5.6 2,679 2,044 7 yrs Tropicana Metropark 100% Freehold 80.7 351.7 7,165 6,335 16 yrs Tropicana Heights 100% Freehold 173.4 204.5 1,726 1,456 11 yrs Tropicana Danga Bay 60% Freehold 28.5 235.6 8,370 7,190 14 yrs Tropicana Danga Cove 50% Freehold 215.3 208.7 12,140 11,708 13 yrs Penang World City 55% Freehold 95.5 998.7 10,086 9,466 15 yrs New Projects The Residences 100% Freehold 1.3 123.0 1,150 1,150 4 yrs Tropicana Aman 100% Leasehold 863.1 955.5 13,000 13,000 20 yrs Casa Damansara 3 100% Freehold 1.1 3.5 135 135 3 yrs Bukit Bintang Land 30% Freehold 3.8 541.6 n.a. n.a. n.a. Others 100% Various 4.2 52.2 394 394 Various Tropicana City Centre 100% Freehold 21.9 146.0 3,602 3,602 8 yrs Tropicana Danga Lagoon 100% Freehold / Leasehold 62.2 130.6 2,500 2,500 15 yrs TDB Hotel & Residences 60% Freehold 6.0 85.9 1,336 1,336 4 yrs Tropicana Gelang Patah 100% Freehold 256.6 366.6 6,440 6,440 10 yrs Senibong Waterfront 70% Freehold 60.0 444.3 3,673 3,673 7 yrs GRAND TOTAL 1,887.7 74,396 70,429

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Summary Of Future Launches

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Thank you

For further information, please contact : Mr Justin Law, Corporate Finance & Investor Relations T : +603 7710 1018 ext 408 E : ir@tropicanacorp.com.my / justin.law@tropicanacorp.com.my W : www.TROPICANACORP.com.my

IMPORTANT DISCLAIMER

The presentation pack is intended to provide financial and management information about Tropicana Corporation Berhad (“Company”) for investors’ information only and shall not be construed as an attempt by the Company to encourage, recommend or advise any transaction and the Company makes no guarantees in any manner as to the accuracy of its contents. The plans, strategies and decisions of the Company in this presentation pack except those derived from actual historical events, are expressions of future prospects prepared based on the information and hypothesis currently available to the management of the Company and may include various risks and uncertainties which may result in a variation of the performance and records actually announced in the future. We encourage that you make your own decision in making your investments. The Company assumes no responsibility in any way and shall bear no liability for the results of any and all transactions conducted by you based on the use and/or referencing of the contents in this presentation pack.