PROPNEX LIMITED AGM 25 April 2019 1 Disclaimer This presentation - - PowerPoint PPT Presentation

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PROPNEX LIMITED AGM 25 April 2019 1 Disclaimer This presentation - - PowerPoint PPT Presentation

PROPNEX LIMITED AGM 25 April 2019 1 Disclaimer This presentation does not constitute or form part of any opinion on any advice to sell, or any solicitation of any offer to subscribe for any shares nor shall it or any part of it nor the fact of


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PROPNEX LIMITED AGM 25 April 2019

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Disclaimer

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This presentation does not constitute or form part of any opinion on any advice to sell, or any solicitation of any offer to subscribe for any shares nor shall it or any part of it nor the fact of its presentation form the basis of, or be relied upon in connection with, any contract or investment decision or commitment whatsoever. This presentation does not purport to be complete and is qualified in its entirety by, and should be read in conjunction with, the full text

  • f PropNex Limited’s Annual Report 2018 (“AR2018”). The information contained in this presentation should not be relied on as any

representation or warranty by Propnex Limited (the “Company” or “PropNex”). The past performance of the Company is not necessarily indicative of its future performance. Certain statements made in this presentation may not be based on historical information or facts and may be "forward-looking" statements due to a number of risks, uncertainties and assumptions. Representative examples of these factors include (without limitation) general industry and economic conditions, interest rate trends, cost of capital and capital availability, competition from similar businesses and governmental and public policy changes and terms necessary to support future business. Such forward-looking statements speak only as of the date on which they are made and PropNex does not undertake any obligation to update or revise any of them, whether as a result of new information, future events or otherwise. Accordingly, you should not place undue reliance on any forward-looking statements. This presentation has been prepared by the Company and its contents have been reviewed by Propnex, for compliance with the relevant rules of the SGX-ST (the “Exchange”). Propnex has not independently verified the contents of this presentation. This presentation has not been examined or approved by the Exchange. Propnex and the Exchange assume no responsibility for the contents of this presentation, including the correctness of any of the statements or opinions made or reports contained in this presentation. No warranty or representation, expressed or implied, is made with respect to the information set out in this presentation, nor will the Company be responsible for the consequences of reliance on any opinion or statement set out herein.

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OVERVIEW

  • Market Leader with First Mover Advantages
  • Maiden Set of Full Year Results since Listing
  • Over 10% Growth in Salespersons
  • Record Net Profit for FY2018
  • Anticipated Line-up of over 50 New Project Launches in 2019

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FINANCIAL SNAPSHOT

Income Statement

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PROPNEX ACHIEVES RECORD NET PROFIT OF S$21.9m IN FY18

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  • Revenue surged 30.0% to S$431.5m
  • SG Salesforce expanded 10.7% YoY from 6,684 to 7,400*
  • As of 25 March 2019, SG salesforce is 7,565.
  • Proposed final & special dividends 3.5 cents per share

(payout S$12.95m, 66.7% of PATNCI)

  • Proposed dividend payout = 143% of post-IPO profits
  • 6.3% yield at 56 cents per share @ 22 Feb 2019
  • 10.8% annualised dividend yield based on IPO price of 65

cents

*Source: The Council for Estate Agencies (“CEA”) as at 1 Jan 2019

  • ,
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(in S$'000) FY2018 FY2017  Rev 431,539 331,851 30% COS (390,177) (298,096) 31% GP 41,362 33,755 GP% 10% 10% Other income 4,202 2,938 43% Staff costs (12,069) (8,283) 46% Expenses (ex IPO) (6,009) (6,253) (4%) IPO expenses (1,113)

  • NM

NPBT 26,373 22,157 19% NP% 6% 7% Tax (4,436) (3,271) 36% NPAT 21,937 18,886 16% NPAT ex. IPO exp 23,050 18,886 22% EPS (in cents) 5.72 5.30 7.9%

Sales force  FY18: 7400, FY17: 6684

  • Agency  FY18: $307.8m,

FY17: $216.6m

  • Proj Mktg  FY18: $117.3m,

FY17: $109.8m

  • Ave. HC  FY18: 165, FY17:

147

  • Sal. increment & bonuses
  • Exec. Dir. salary

FY18 INCOME STATEMENT

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REVENUE (S$’ M)

GROUP REVENUE

Mainly due to increase in commission income from agency services, project marketing services as a result of growth of SG salesforce from 6,684 as at 1 Jan 2018 to 7,400 as at 1 Jan 2019

* Adjusted to reflect SFRS(I) 15

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CAGR 29.2% CAGR 45.3% CAGR 40.5%

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REVENUE BREAKDOWN

Source: PropNex Page 9

40% 43%

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Market Share By No of Units

The market share information also includes transactions where PropNex salespersons act on behalf of buyers and sellers in co-broking with external agencies. Source: Frost & Sullivan Pte Ltd, HDB

HDB RESALE

MARKET SHARE

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PRIVATE RESALE

Source: Frost & Sullivan Pte Ltd, URA

MARKET SHARE

Market Share By No of Units

The market share information also includes transactions where PropNex salespersons act on behalf of buyers and sellers in co-broking with external agencies.

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PRIVATE LEASING

Source: Frost & Sullivan Pte Ltd, URA

MARKET SHARE

Market Share By No of Units

The market share information also includes transactions where PropNex salespersons act on behalf of buyers and sellers in co-broking with external agencies.

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(Private Primary Market)

Source: Frost & Sullivan Pte Ltd, URA

MARKET SHARE

NEW LAUNCHES

Market Share By No of Units

The market share information also includes transactions where PropNex salespersons act on behalf of buyers and sellers in co-broking with external agencies. New launches market share data includes EC, non-landed and landed transactions.

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BUSINESS UPDATES

  • Anticipated over 50 New Launches in 2019
  • URA Overall Private Residential Transactions

FY18: 22,139, FY17: 25,010,  11.5%

  • Private Residential Demand from En-Bloc
  • wners, 2019 similar to 2018
  • HDB Resale Transactions

FY18: 23,099, FY17: 22,077,  4.6%

  • HDB FY19 to witness consistent growth

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PROJECTS MARKETED TO DATE (Launched in 2017)

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Project

  • No. of

Units

1 26 Newton 180 2 Artra (New Launch) 400 3 Goodwood Grand 65 4 Kandis Residences 130 5 Le Quest (New Launch) 516 6 Leedon Residences 381 7 Lloyd Sixty Five 76 8 Marina Collection 124 9 Martin Modern (New Launch) 450 10 Pearl Island 10 11 Queens Peak 736 12 Reflections at Keppel Bay 1,129 13 The Line at Tanjong Rhu 130 14 The Peak at Cairnhill II (New Launch) 60 15 Three Balmoral 40

Source: PropNex, Not inclusive of Commercial/ Industrial Projects

TOTAL 4,427

Bold – Appointed after initial launch

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PROJECTS MARKETED TO DATE (Launched in 2018)

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Project

  • No. of Units

1 New Futura 124 2 The Tapestry 861 3 8 Hullet 44 4 Wallich Residences 181 5 Rivercove Residences 628 6 Twin Vew 520 7 120 Grange 56 8 Margaret Ville 309 9 The Garden Residences 613 10 The Enclave @ Holland 26 11 Marina One Residences 521 12 South Beach Residences 190 13 3 Cuscaden* 96 14 3 Orchard by the Park 77 15 Riverfront Residences 1,472 16 Park Colonial 805

Project

  • No. of Units

17 Daintree Residences 327 18 The Tre Ver 729 19 Jadescape 1,206 20 Bukit 828 34 21 Mont Botanik 108 22 Mayfair Gardens 215 23 The Jovell 428 24 8 St Thomas 250 25 Belgravia Green* 81 26 Whistler Grand* 716 27 Kent Ridge Hill Residences* 548 28 Amber 45 139 29 Cashew Green 19 30 Mayfair Modern* 171 31 Parc Esta* 1,399

TOTAL 12,893

Source: PropNex, Not inclusive of Commercial/ Industrial Projects Bold: Take-over projects

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PROJECTS PERFORMANCE IN 2018 ✓PropNex was involved in 31 project launches in 2018: 26 were new launches and 5 were appointed after the initial launch. ✓The Group closed the highest number

  • f units in 21 of these 26 new launches,

against other joint marketing agencies during the launch weekend.

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✓ Anticipated line-up of 69 projects with approximately 25,000 units as government land bids and collective sales secured by developers in 2017/18 will be ready for launches in 2019/20. ✓ As at 23 April 19, PropNex is appointed for 44 new projects, with approximately 19,000 units earmarked to be launched in 2019 ✓ Other existing projects/units available for sale in 2019 ✓ As of URA 4Q 2018 Figures: Approximately 35,000 unsold units (including ECs) with planning approvals

PROJECTS LINED UP IN 2019

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ESTIMATED LAUNCH PROJECT NAME LOCATION DEVELOPER

  • EST. NO OF

UNITS 1

H1 2019 UPTOWN @ FARRER PERUMAL ROAD LOW KENG HUAT 116

2

H1 2019 PARKWOOD COLLECTION LORONG 1 REALTY PARK FANTASIA INVESTMENT (SINGAPORE) 53

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H1 2019 RV ALTITUDE RIVER VALLEY ROAD ROXY PACIFIC HOLDINGS 140

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H1 2019 *DUNEARN 386 DUNEARN COURT ROXY PACIFIC HOLDINGS 35

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H1 2019 *NORMANTON PARK NORMANTON PARK KINGSFORD DEVELOPMENT 1,862

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H1 2019 *PARC CLEMATIS Jalan Lempeng SingHaiyi Group 1,468

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H1 2019 *ONE MEYER Meyer Road Sustained Land 60

8

H1 2019 *JERVOIS PRIVE Jervois Road Spring Court owner-led consortium 50

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H1 2019 *LATTICE ONE Seraya Crescent Tee Land 40

*Former name/no appointed project name

PROJECTS LINED UP IN 2019

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PROJECTS LINED UP IN 2019

ESTIMATED

LAUNCH PROJECT NAME LOCATION DEVELOPER

  • EST. NO OF

UNITS

10 H1 2019 *AMBER PARK AMBER GARDENS CDL / HONG LEONG 592 11 H1 2019 TREASURE AT TAMPINES TAMPINES STREET 11 SIM LIAN HOLDINGS 2,203 12 H1 2019 *HAUS ON HANDY HANDY ROAD CDL 188 13 H1 2019 *CHANGI GARDEN UPPER CHANGI ROAD NORTH CHIP ENG SENG 300 14 H1 2019 THE GAZANIA HOW SUN DRIVE SINGHAIYI GROUP 250 15 H1 2019 THE LILIUM HOW SUN ROAD SINGHAIYI GROUP 80 16 H1 2019 *THE ANTARES MATTAR ROAD TIONG AIK / HOCK LIAN SENG 250 17 H1 2019 *SILAT AVENUE SILAT AVENUE UOL / UIC / KHENG LEONG 1,074 18 H1 2019 *KEMAMAN POINT BALESTIER ROAD SOILBUILD GROUP 120 19 H1 2019 *SUMANG WALK SUMANG WALK CDL / TID 820

*Former name/no appointed project name

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ESTIMATED

LAUNCH PROJECT NAME LOCATION DEVELOPER

  • EST. NO OF

UNITS 20

H1 2019 *35 GILSTEAD GILSTEAD ROAD TEE LAND / TG DEVELOPMENT 70

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H1 2019 *CAIRNHILL MANSIONS CAIRNHILL ROAD LOW KENG HUAT 200

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H1 2019 *SENGKANG CENTRAL SENG KANG CENTRAL CAPITALAND / CDL 700

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H1 2019 *DAIRY FARM ROAD DAIRY FARM ROAD UED RESIDENTIAL 589

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H1 2019 *JALAN JURONG KECHIL JALAN JURONG KECHIL COHL SINGAPORE AND CSC LAND 284

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H1 2019 *CASA MEYFORT MEYER ROAD GUOCOLAND 310

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H1 2019 *CAIRNHILL HEIGHTS CAIRNHILL RISE TIONG SENG AND OCEAN SKY 50

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H1 2019 *TULIP GARDEN FARRER ROAD MCL LAND / YANLORD GROUP 670

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H1 2019 *DUNEARN GARDENS DUNEARN ROAD EL DEVELOPMENT 348

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H1 2019 *EUNOS MANSION BEDOK RESERVOIR ROAD FRAGRANCE GROUP 230

PROJECTS LINED UP IN 2019

*Former name/no appointed project name

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ESTIMATED

LAUNCH PROJECT NAME LOCATION DEVELOPER

  • EST. NO OF

UNITS 30

H1 2019 *KATONG PARK TOWERS ARTHUR ROAD BUKIT SEMBAWANG 390

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H1 2019 *MAKEWAY VIEW MAKEWAY AVENUE BUKIT SEMBAWANG 150

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H1 2019 *THE ESSENCE CHONG KUO ROAD LIAN SOON HOLDINGS / OKP LAND 80

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H1 2019 *KISMIS VIEW LORONG KISMIS ROXY PACIFIC JOLDINGS / TONG ENG 160

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H1 2019 *CITY TOWERS BUKIT TIMAH ROAD JAPURA DEVELOPMENT 290

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H1 2019 *PEARL BANK APARTMENTS PEARL BANK CAPITALAND 810

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H1 2019 *RIVIERA POINT KIM YAM ROAD MACLY GROUP 60

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H1 2019 *HOLLAND ROAD HOLLAND ROAD FAR EAST ORGANIZATION 850

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H1 2019 *CUSCADEN ROAD CUSCADEN ROAD SC GLOBAL / NEW WORLD DEVELOPMENT / FAR EAST CONSORTIUM 220

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H1 2019 *ROYALVILLE BUKIT TIMAH ROAD ALLGREEN PROPERTIES 320

PROJECTS LINED UP IN 2019

*Former name/no appointed project name

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ESTIMATED LAUNCH PROJECT NAME LOCATION DEVELOPER

  • EST. NO

OF UNITS 40 H1 2019 JUNIPER HILL EWE BOON ROAD ALLGREEN PROPERTIES 115 41 H1 2019 *PARKWAY MANSIONS AMBER ROAD SUSTAINED LAND 140 42 H1 2019 FYVE DERBYSHIRE DERBYSHIRE ROAD ROXY PACIFIC HOLDINGS 71 43 H1 2019 *CHANCERY COURT DUNEARN ROAD FAR EAST ORGANIZATION 480 44 H1 2019 *ROYAL OAK RESIDENCE ANDERSON ROAD FAR EAST CONSORTIUM 110 45 H1 2019 *PARK HOUSE ORCHARD BOULEVARD SHUN TAK HOLDINGS 170 46 H1 2019 *NASSIM NASSIM ROAD SHUN TAK HOLDINGS 123 47 H1 2019 *JIAK KIM STREET JIAK KIM STREET FRASERS CENTREPOINT 455 48 H1 2019 *MEYERHOUSE MEYER ROAD UOL / KHENG LEONG 56 49 H1 2019 *HILLVIEW RISE HILLVIEW RISE HONG LEONG 570

PROJECTS LINED UP IN 2019

*Former name/no appointed project name

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ESTIMATED LAUNCH PROJECT NAME LOCATION DEVELOPER

  • EST. NO

OF UNITS 50 H1 2019 *Lodge 77 Upper East Coast Road KTC Group 50 51 H1 2019 Rezi 24 Lorong 24 Geylang KSH Holdings, Lian Beng Group & Heeton Holdings 90 52 H1 2019 Petit Jervois Jervois Road SC Global Developments 55 53 H1 2019 *Toho Mansion Holland Road Koh Brothers Group 90 54 H1 2019 Fourth Avenue Residences Fourth Avenue Allgreen properties 476 55 H1 2019 1953 1 Tessensohn Road Oxley Holdings 58 56 H1 2019 Parkwood Residences Yio Chu Kang Road Oxley Holdings 18 57 H1 2019 Boulevard 88 Orchard Boulevard CDL 154 58 H1 2019 Asia Gardens Everton Road SUSTAINED LAND 264 59 H2 2019 *Pomex Court Lorong 101 Changi K16 Development 40 60 H2 2019 *Goh & Goh Building Upper Bukit Timah Road BBR Holdings 120 61 H2 2019 *Landmark Tower Chin Swee Road ZACD Group, MCC Land & Sin Soon Lee Realty 530

PROJECTS LINED UP IN 2019

*Former name/no appointed project name

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ESTIMATED LAUNCH PROJECT NAME LOCATION DEVELOPER

  • EST. NO OF

UNITS

62 H2 2019 *Goodluck Garden Toh Tuck Road Qingjian Group & Perennial Real Estate Holdings 669 64 H2 2019 PHOENIX HEIGHT PHOENIX ROAD OKP HOLDINGS / USB HOLDINGS 79 65 H2 2019 *PACIFIC MANSION RIVER VALLEY CLOSE GUCCOLAND / HONG LEONG 720 66 H2 2019 *HOLLANDIA AND THE ESTORIL HOLLAND ROAD FEC INTERNATIONAL 310 67 H2 2019 *ANCHORVALE CRESCENT (EC) ANCHORVALE CRESCENT EVIA REAL ESTATE / GAMUDA 550 68 H2 2019 *CANBERRA LINK (EC) CANBERRA LINK HOI HUP / SUNWAY DEVELOPMENTS 580 69 H2 2019 *BROOKVALE PARK BROOKVALE WALK HOI HUP / SUNWAY DEVELOPMENTS 790

* ESTIMATED 2019 TOTAL UNITS TO BE LAUNCHED 25,307

PROJECTS LINED UP IN 2019

*Former name/no appointed project name

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WHAT SETS US APART

Largest Real Estate Agency Resilient Business Model

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SINGAPORE’S LARGEST LISTED REAL ESTATE AGENCY

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Top 4 property agencies in Singapore by Agent Count

*Source: The Council for Estate Agencies (“CEA”) as at 1 Jan 2019

,

PropNex’s number of salespersons have grown by

14.8%

  • As at 23 Apr 2019 stands at 7,670**
  • Y-O-Y from 6,684 to 7,400*

**Source: The Council for Estate Agencies (“CEA”)

,
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BUSINESS STRATEGIES & PLANS

✓ Enhancing Competitiveness and Operations

  • f our real estate brokerage business

✓ Local and Regional Expansion ✓ Expansion of our range of Business Services ✓ Increasing Productivity through Enhancement of our Technological Capabilities

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  • Impactful Training and Development Programmes:

(More than 20,000 attendees)

  • Jumpstart Trainings
  • Power Sales Booster Trainings (Mega-scale)
  • PropNex Signature Salespersons’ and Leadership

Bootcamps (more than 1,000 graduates in the last seven months across Indonesia, Malaysia, Vietnam and Singapore.)

  • Post Cooling Measures Trainings
  • 4 x Quarterly Conventions

for salespersons to better guide and help home buyers and investors achieve greater results in their property investment

ROBUST TRAININGS TO EMPOWER OUR SALESPERSONS

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ROBUST TRAININGS: JUMPSTART 2019

Full house attendance at Kallang Theatre

  • n 22 Jan 2019

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PROPNEX SIGNATURES: SALESPERSONS’ BOOTCAMP

15 to 17 Jan 2019, 300 attendees from PropNex Singapore, PropNex Indonesia, PropNex Malaysia, PropNex Vietnam

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ROBUST TRAININGS: QUARTERLY CONVENTIONS

14 August 2018 President Madam Halimah Yacob attended our August convention

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ROBUST TRAININGS: QUARTERLY CONVENTIONS

19 March 2019 Minister Heng Swee Kiat with over 3,000 attendees

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PROPNEX CONSUMER SEMINARS

PropNex engages home investors in empowering them for better informed decisions in their real estate investment journey. 2018 TOTAL OF 30 CONSUMER SEMINARS were conducted empowering over 7,000 consumers. 2019, continuing our FULL HOUSE CONSUMER SEMINARS to help home investors better understand the impact of the latest cooling measures and

  • pportunities ahead.
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2019 First Consumer Seminar of the year was conducted by Executive Chairman & CEO Ismail Gafoor 23 Feb 2019

At the newly expanded PropNex Office (Level 18)

PROPNEX CONSUMER SEMINARS

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PROPNEX CONSUMER SEMINARS

Stirling Residences Consumer Seminar by Kelvin Fong (16 Apr) Florence Residences Consumer Seminar by Kelvin Fong (22 Apr) Affinity at Serangoon Consumer Seminar by Kelvin Fong (19 Apr)

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Thank you

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Strictly Private & Confidential

SHARE BUY-BACK MANDATE

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Rationale

  • Increase shareholders’ value: Enhance

ROE

  • Greater control over capital structure
  • Return surplus cash in cost-efficient manner

SHARE BUY-BACK MANDATE

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Requirements to Initiate Buy-back

  • Upon annual approval by shareholders
  • Beneficial to Co. & shareholders
  • No material adverse effect financial position
  • Profitable & solvent

SHARE BUY-BACK MANDATE

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When Not to Buy?

  • Before announcement of price-sensitive

devt

  • Before announcement of results
  • Quarterly: 2 weeks
  • Full Year: 1 month
  • Public float ~ 10%
  • Disrupt orderly trading of shares

SHARE BUY-BACK MANDATE

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Terms

  • ≤ 10% of issued shares
  • Ave closing price (“ACP”) of previous 5

trading days

  • Market purchase ≤ 105% of ACP
  • Off-market purchase ≤ 120% of ACP
  • Orderly purchase of shares

SHARE BUY-BACK MANDATE

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Orderly Purchase of Shares

  • Aug18 to Mar 2019 mth vol: 4m to 11m

shares

  • Ave daily vol ~400k shares
  • Limit daily buy-back to 60% of daily ave, i.e.

~240k shares

  • If buy 3m shares, buy back over 13 trading

days (3m/0.24m shares) SHARE BUY-BACK MANDATE

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Strictly Private & Confidential

Thank you

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