Corporate Update 1Q FY2014 Financial Results 9 May 2014 On Track - - PowerPoint PPT Presentation

Corporate Update 1Q FY2014 Financial Results

9 May 2014

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On Track To Fulfil Our Transformation Strategy

Record unbilled sales of RM2.4bn provides strong earnings visibility RM3.0bn new launches in FY14, targeting sales of above RM2bn > 40% new launches in landed residential products; stronger bias towards Greater KL and Penang markets Manageable net gearing of 0.54x. De-gearing initiatives to further strengthen balance sheet Sustain growth momentum with continuing focus to unlock value through development activities and land sales

To Be A Premier Property Group In Malaysia

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Corporate Snapshot

FYE 31 DECEMBER 2013 Revenue RM1,475.5 (+134.1%) Net Gearing 0.55x PBT RM503.6m (+123.9%) Total Assets RM5,425.7m PAT/MI RM362.3m (+111.7%) Net Assets / share RM2.32 PBT margin (%) 34.1% ROA (%) 6.7% Net EPS * 34.3sen ROE (%) 14.1% Gross DPS 4.5sen (interim)

* Based on weighted average share base of 1,056m shares

* as at 17 March 2014 SHARE INFORMATION Share price RM1.59 Issued Capital (shares) 1,365.6m of RM1 each Market capitalisation RM2,171 million Listing Main Board, Bursa Malaysia Major shareholder Tan Sri Dato’ Danny Tan (70.5%) 3% 10-Yr RCULS : Nominal value outstanding* RM76.3m Warrants (2009/2019)* 154m convertible @ RM1 each

1Q FY2014 Financial Review

Financial results of corresponding quarter in FY13 incorporated land sale revenue of RM126m and PBT gain of RM43.3m Adjusting for the impact of land disposal for comparison purposes

• 1QFY14 revenue was up 66.9%
• 1QFY14 PBT was 5.5% higher

1QFY14 net EPS at 0.7 sen

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1Q FY14 Financial Snapshot

FYE Dec 31 RM m 1QFY14 1QFY13 % chg FY13 Revenue 299.1 305.3

• 2.0%

1,475.5 PBT 24.8 66.8

• 62.9%

503.6 PATMI 7.8 43.8

• 82.3%

362.3 Net EPS ^ 0.7 5.5

• 87.3%

34.3 PBT margin 8.3% 21.9% 34.1% PATMI margin 2.6% 14.3% 24.6%

^ Based on weighted average share base of 1,192.8 m shares for 1Q FY14 and 797.1 m shares for 1Q FY13

1QFY14 revenue growth underpinned by

• Construction progress at key ongoing projects
• Tropicana Cheras, Tropicana Avenue, Tropicana Danga Bay (Tropez) & Tropicana Gardens
• Newer project, Tropicana Metropark also beginning to contribute
• Consolidation of Tenaga Kimia Sdn Bhd as a subsidiary from May 2013 onwards

Modest increase in 1QFY14 PBT (ex-land sales) due to higher finance cost and administrative

• verheads

PBT margin expected to improve in subsequent quarters

• Higher finance cost being addressed through aggressive ongoing de-gearing initiatives
• Improved absorption of administrative overheads once construction progress at key ongoing

projects reach a more advanced stage

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Review of 1Q FY14 Financial Results

Net assets per share of RM1.90 Increase in non current assets and liabilities due to completion

• f Tropicana Aman acquisition

Improvement to net gearing on the cards with sizeable land disposals signed

• Partial sale of Tropicana

Aman land to EcoWorld for RM471m

• Sale of Jalan Bukit Bintang

land for RM448m

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Net Gearing Manageable At 0.54x

FYE Dec 31 RM m Mar 31 2014 Dec 31 2013 % chg Non Current Assets 4,555.7 3,567.7 +27.7% Current Assets 1,937.5 1,858.0 +4.3% Total Assets 6,493.2 5,425.7 +19.7% Current Liabilities 1,326.4 883.1 +50.2% Non Current Liabilities 2,341.9 1,808.6 +29.5% Total Liabilities 3,668.3 2,691.7 +36.3% Shareholders’ Equity 2,824.9 2,734.0 +3.3% Total Equity & Liabilities 6,493.2 5,425.7 +19.7% Net Gearing (x) 0.54 0.55 Net Asset / Share 1.90 2.32

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Raising Another RM1.05bn Through Land Disposals

Landbank Sold Acquired Acres Book Value (RM/psf) Sale Price (RM/psf) Status Gross Proceeds (RM m) Tropicana Aman * 2013 308.72 18 35 SPA signed, pending completion 471 Jalan Bukit Bintang, KL 2012 3.14 1,609 3,280 SPA signed, pending completion 448 Jalan Kia Peng, KL 2012 1.45 1,338 2,100 SPA signed, pending completion 132 Subtotal 1,051 * Partial disposal

RM339m raised in FY13 RM1.05bn signed and pending completion at this stage

• Including partial sale of Tropicana Aman and sale of Jalan Bukit Bintang land

Sale of land at Tropicana Aman (previously known as Tropicana Canal City), Selangor to Eco World Development Group Berhad 308.72 acres for a total cash consideration of RM471m or RM35 per sqft

• S & P is dated 19 March 2014; completion targeted in 2H2014

Out of the 1,172 acres, net developable area is approximately 749 acres of which 308.72 acres is sold pursuant to this proposed disposal Transaction will give rise to net gain of approximately RM170m Estimated incremental net EPS of 12 sen to FY14 earnings

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Partial Disposal Of Tropicana Aman

Sale of 3.138 acres in Jalan Bukit Bintang, KL for RM448.4m or approximately RM3,280 per sq ft

• To Offshore Triangle Sdn Bhd (“JV Co”)
• Expect completion in 1H FY15

JV Co is 70:30 owned by HK-listed Agile Property Holdings Ltd (“Agile”) and Tropicana respectively

• Strategic alliance with Agile allows Tropicana to also enjoy development upside

Land earmarked for mixed commercial development Able to leverage on each other’s expertise and track record in property development for mutual benefits

• Development will be marketed through Agile’s network
• Strategic partnership with Agile will also further enhance Tropicana’s brand presence and

visibility across regional markets including China, Hong Kong and Macau

Sales to raise net proceeds of about RM245m Transaction will give rise to estimated gain of RM145m; incremental net EPS of 11 sen

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Sale Of Bukit Bintang Land JV With Agile Property Holdings For Future Upside

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Location of Bkt Bintang Land

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Recent Transactions In The Vicinity

Subject Land

Sales & Projects Update

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New Sales Of RM395m in 1Q FY14

Sales Summary (RM m) 1QFY14 FY13 Tropicana Grande 10 237 Tropicana Avenue 12 236 Tropicana Cheras 14 64 Tropicana Gardens 10 338 Tropicana Metropark 34 281 Tropicana Heights 102

• Others

36 145 Tropicana Danga Bay 60 259 Tropicana Danga Cove 15 59 Penang World City 21 497 218 Macalister 73

• Tropicana Landmark

8 44 GRAND TOTAL 395 2,160

1Q2014 New Sales Breakdown

RM m 347 967 2,160 395 >2,000

2011 2012 2013 1Q2014 2014

55% 19% 24% 2% Central Southern Northern East Malaysia

1,071 1,647

2,214 2,183 2,388

1QFY13 2QFY13 3QFY13 4QFY13 1QFY14

Unbilled sales sustained at high of RM2.4bn Provides earnings visibility for FY2014/2015

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Record Unbilled Sales At RM2.4bn

Unbilled Sales As At 31 Mar 2014 (RM m) Tropicana Gardens 449 Tropicana Metropark 275 Tropicana Cheras 43 Tropicana Grande 16 Tropicana Avenue 343 Tropicana Heights 103 Others 89 Tropicana Danga Bay 443 Tropicana Danga Cove 33 Penang World City 490 218 Macalister 76 Tropicana Landmark 28 Total 2,388

RM m

Targeting FY2014 new sales of more than RM2.0bn Greater focus on landed residential and township developments

• Maiden launch at Tropicana Heights well received
• Tropicana Aman target for launch in 2H 2014

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Planned Launches Of RM3.0bn in 2014

RM m Estimated FY14 Launches Target Launch Period FY14 Launch To Date FY2014 To Be Launched Launch Value (RM m) Take-up Rate (%) Tropicana Heights 646 1Q&3Q 2014 270 84% 376 Tropicana Aman 770 2H 2014

• 770

Tropicana Gardens 429 2H 2014

• 429

Tropicana Danga Bay 217 2H 2014

• 217

Tropicana Danga Cove 122 2H 2014

• 122

Penang World City 528 2H 2014

• 528

218 Macalister 320 1Q 2014 320 39%

• GRAND TOTAL

3,032 590 2,442

Property Development Central Region / Greater KL

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Projects At A Glance - Central Region

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Mar 2014 Projects Summary (RM m) Interest Total GDV Previous Launched GDV Overall Sales @ Mar 2014 FY14 Launches Remaining GDV as at Mar 2014 Tropicana Avenue 100% 600 600 82%

• Tropicana Cheras

100% 240 240 87%

• Tropicana Gardens

70% 2,679 635 88% 429 2,044 Tropicana Metropark 100% 7,165 830 41%

• 6,335

Tropicana Heights 100% 1,726

• 646

1,456 New Projects The Residences 100% 1,150

• 1,150

Tropicana Aman 100% 13,000

• 770

13,000 Casa Damansara 3 100% 135

• 135

Others 100% 430

• 430

GRAND TOTAL 27,125 2,305 1,845 24,550

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Development Summary - Central Region

199 acre freehold mixed development in residential hotspot Kajang with total estimated GDV of RM1.7bn Mixed development comprising bungalows, semi-detached, superlink, terrace, condo, serviced apartment, resident’s clubhouse & commercial development within a gated enclave

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Central Region - Tropicana Heights

Maiden launch of terrace houses with total estimated GDV of RM646m in 2014 Launched Phase 1 in Feb 2014

• 289 units 2 to 3-storey terrace houses with total GDV of RM270m
• Average pricing of RM870,000 with built-up from 2,135 sq ft to 3,344 sq ft
• Strong response with take-up of 84% to-date

Target to launch cluster homes and terrace houses with total GDV of RM376m in 3Q 2014

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Tropicana Heights – Phase 1

Mixed residential and commercial development on 17.6 acres in Kota Damansara with total estimated GDV of RM2.7bn Proximity to Dataran Sunway MRT station Arnica Serviced Residences with GDV of RM230m fully sold BayBerry Serviced Residences with GDV of RM405m launched in Apr 2013

• 84% take-up rate

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Central Region – Tropicana Gardens

Launching Tower 3 in 2H 2014

• Total GDV of RM429m
• Comprising 406 units serviced apartments with size ranging from 600sq ft to 1,399 sq ft

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Tropicana Gardens

Tower 3

Tropicana Aman (previously known as Tropicana Canal City)

• Sold 308 net developable acres to EcoWorld for RM471m cash
• Remaining 440 net developable acres with potential GDV of RM13bn

Target to launch landed properties with an estimated GDV of RM770m in 2H 2014 Tropicana Aman will solidify Tropicana’s presence in Klang Valley

• Incorporating the Group’s development DNA, emphasising on innovative concepts and its

trademark features on space and greeneries

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Central Region - Tropicana Aman

Flanked by major expressways Nearby developments include Kota Kemuning, Putra Heights and up and coming Bukit Rimbayu

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Tropicana Aman Prime Location With Excellent Connectivity

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Tropicana Aman - Masterplan

Creating a vibrant and unique self-contained community incorporating

• Healthy Lifestyle
• Green , Sustainable Architecture and Township
• Community Living in a safe environment

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Tropicana Aman - Masterplan

Property Development Southern Region / Iskandar Malaysia

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Projects At A Glance - Southern Region

SENIBONG WATERFRONT

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Development Summary – Southern Region

Mar 2014 Projects Summary (RM m) Interest Total GDV Previous Launched GDV Overall Sales @ Mar 2014 FY14 Launches Remaining GDV as at Mar 2014 Tropicana Danga Bay 60% 8,370 1,180 64% 217 7,190 Tropicana Danga Cove 50% 12,140 432 22% 122 11,708 Future Projects Tropicana City Centre 100% 3,602

• 3,602

Tropicana Danga Lagoon 100% 2,500

• 2,500

TDB Hotel & Residences 60% 1,336

• 1,336

Tropicana Gelang Patah 100% 6,440

• 6,440

Senibong Waterfront 70% 3,673

• 3,673

GRAND TOTAL 38,061 1,612 339 36,449

Mixed integrated development on 37 acres in Iskandar Malaysia with total estimated GDV of RM8.4bn

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Southern Region - Tropicana Danga Bay

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Tropicana Danga Bay - Masterplan Perspective

Tropez Residences, high-end condominium project

• Comprising 3 Tower Blocks with total GDV of RM685m launched in 1QFY12
• 94% take-up rate; non-bumi units fully sold

Bora Residences, 6 towers of serviced residences with approximately 2,200 units

• Part of master development which includes 8 acres of recreational space, diverse range of

facilities and the proposed Danga Bay Shopping Mall

• Launched Tower 1 in Oct 2013
• 396 units of serviced apartments with estimated GDV of RM495m
• Current take-up of 44%
• Planning launch of Tower 2 in 2H 2014
• 118 units of serviced apartments with estimated GDV of RM217m

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Tropicana Danga Bay

Mixed integrated development on 227 acres in Iskandar Malaysia with total estimated GDV of RM12.1bn Oasis 1 & 2, comprising 290 units of 3 to 4-storey shop offices with GDV of RM432 million

• Overall take up of 36% with Oasis 1 fully taken up

Planning launch of Oasis 3 in 2H 2014

• 62 units of 3 to 4-storey shop offices with total estimated GDV of RM122m

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Southern Region - Tropicana Danga Cove

Property Development Northern Region / Penang Island

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Projects At A Glance - Northern Region

PENANG WORLD CITY TROPICANA 218 MACALISTER

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Development Summary - Northern Region

Mar 2014 Projects Summary (RM m) Interest Total GDV Previous Launched GDV Overall Sales @ Mar 2014 FY14 Launches Remaining GDV as at Mar 2014 Penang World City 55% 10,086 620 93% 528 9,466 Tropicana 218 Macalister 100% 320

• 320
• GRAND TOTAL

10,406 620 848 9,466

Integrated waterfront city on 102.6 acres freehold land with total estimated GDV of RM10.1bn

• Strategically located at the gateway of

Penang Island

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Northern Region - Penang World City

Tropicana Bay Residences, comprising 6 blocks of high-end condominiums

• Successfully launched 4 blocks with GDV of RM620m in Sep 2013
• Fully taken up
• Launching Block E in 2H 2014, comprising 167 units with estimated GDV of RM122m
• Average pricing of RM730,000 with built up of 900 sq ft

Planning to launch one block of high-rise residences in 2H 2014

• Estimated GDV of RM318m

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Tropicana Bay Residences @ Penang World City

33-storey lifestyle development in the heart of George Town

• Featuring neo suites, serviced apartments, retail shops and 200-room hotel to be managed by

’Courtyard by Marriott’ – the first in Malaysia

• Total estimated GDV of RM320m

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Northern Region - Tropicana 218 Macalister

Launched over Jan / Feb 2014 with encouraging response

• 299 units of serviced residences and neo suites with total GDV of RM290m
• Current take-up at 39%
• 19 retail units with GDV of RM30m
• Pricing from RM520k to RM5.0m with built-up of 323 sq ft to 2,000 sq ft
• Current take up of 41%

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Tropicana 218 Macalister

Prospects & Outlook

Land sales and development activities to continue driving growth in FY2014

• High unbilled sales of RM2.4bn underpins growth in development earnings
• Earnings momentum to improve as construction of ongoing projects progresses to more

advanced stage

Target to achieve new sales of more than RM2.0bn in 2014 from planned launches of RM3.0bn in FY2014

• Greater emphasis on landed residential and township developments
• Maiden launch of Tropicana Heights and Tropicana Aman
• Strong response for initial launch in Tropicana Heights

Continue with de-gearing focus to strengthen balance sheet

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Sustaining Growth In FY14

2014 New Launches of RM3.0bn

61% 11% 28% Central Southern Northern

Strategic landbanks across Greater KL, Iskandar Malaysia & Penang Island

• Strong potential for unlocking value through development activities and land sales

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Landbank of 1,954 acres with potential GDV of RM70.5bn

Breakdown by GDV Breakdown by Acreage

Total 1,954 acres Total GDV of RM70.5bn

61% 34% 5% Central Southern Northern 36% 51% 13% Central Southern Northern

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Transformation Into Premier Property Group

• Realising value of our sizeable landbank
• Accelerating inventory sales and fast tracking new launches
• Enhancement of profit margin through value engineering; and harnessing synergies via centralised procurement

and shared services

Unlocking Value Through Development

• Pursue land sale opportunities to accelerate and enhance returns to shareholders
• Target sustainable disposal strategy to generate recurring income stream

Unlocking Value Through Land Sales

• Accelerate de-gearing via disposal of land parcels and none-core investment assets
• Target to achieve long term net gearing of < 0.5x

De-Gearing Initiatives

• Forming strategic partnerships at projects level to accelerate growth

Strategic Partnerships

• Official name change to Tropicana Corporation Berhad
• Current & future projects to carry common Tropicana brandname
• Improve brand equity to command premium product pricing
• Concurrent IR rebranding to institutionalize shareholders base

Enhance Corporate Identity Via Re-Branding Exercise

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.

Appendix 1 Development Summary

Potential New Launches Interest Tenure Total Land Area (acre) Land Cost (RM m) Total GDV (RM m) Remaining GDV @ Mar 2014 (RM m) Development Period Tropicana Gardens 70% Leasehold 17.6 7.0 2,679 2,044 7 yrs Tropicana Metropark 100% Freehold 88.5 385.5 7,165 6,335 16 yrs Tropicana Heights 100% Freehold 198.5 235.8 1,726 1,456 11 yrs Tropicana Danga Bay 60% Freehold 37.3 308.5 8,370 7,190 14 yrs Tropicana Danga Cove 50% Freehold 227.0 220.0 12,140 11,708 13 yrs Penang World City 55% Freehold 102.6 1,072.2 10,086 9,466 15 yrs Future 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 Others 100% Various 10.2 53.1 430 430

• 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 1,954 74,432 70,465

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Summary Of Future Launches

Appendix 2 Key Personnel

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Executive Board Members

• Entrepreneur with extensive experience in property development, resort

management, restaurants, leisure and entertainment operations.

Tan Sri Dato’ Danny Tan Group Executive Vice Chairman

• Former Group MD of Hong Leong Industries Bhd and MD of Sunway Holdings
• Bhd. A Chartered Accountant by profession with > 30 years of experience in

corporate finance and general management.

Dato’ Yau Kok Seng Group CEO

• Bachelor of Science (Honours) in Business Management and Masters of

Science in Internal Auditing and Management. 8 years experience in corporate strategy and planning, group sales and marketing and business development.

Dato’ Dickson Tan Deputy Group CEO

• Architect by profession with > 20 years of experience in the property
• development. Overseeing the property development projects for Central

Region.

Edmund Kong Group Managing Director

• Over 23 years of experience in the Asean banking and financial services

industry, particularly in the areas of investment banking, corporate banking, leveraged buyout & financing, loan syndication and capital markets.

Kok Kong Chin Group Managing Director

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Professional Senior Management

• Bachelor of Engineering (Hons) in Civil Engineering from University of Bristol

and MBA from University of Bradford. >20 years in property development : business planning, land acquisition, master planning, product & design development, tender and award, cost and cash flow management, construction management and BCA Green Mark Accreditation.

Lee Han Ming Managing Director Projects

• > 20 years in corporate finance, general management, investment and fund

management, treasury, taxation and investor relations in several major conglomerates in the country.

Leong Choon Meng Executive Director Corporate Finance

• MBA from University of Bath, UK. > 20 years in property development, real

estate, retail/merchandise industry, responsible for marketing strategies, planning, public relations, market research, product pricing /development and advertising & promotion activities.

Pamela Loh Executive Director Sales & Marketing