SIME DARBY PROPERTY BERHAD Investor Presentation UBS Singapore Day - - PowerPoint PPT Presentation
SIME DARBY PROPERTY BERHAD Investor Presentation UBS Singapore Day 3 rd October 2018 Presentation Outline Sime Darby Property Profile 1 Key Growth Areas and Recent 2 Developments Growth Strategies 3 Financial and Operational Highlights
UBS Singapore Day – 3rd October 2018
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Source: Tricor
55.8% 10.9% 4.6%
Foreign Shareholdings
14.4% As at 1st Oct’18 14.3%
Other Domestic Shareholdings and the public
1.11 1.78 1.15
Share Price Movement (RM)
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JOHOR THAILAND NEGERI SEMBILAN KEDAH
Singapore
SELANGOR
UNITED KINGDOM AUSTRALIA
Key Developments
BANDAR UNIVERSITI PAGOH
PENINSULA MALAYSIA
North-South Expressway GEORGETOWN, PENANG 3,239 acres 2,826 acres 1,462 acres 3,262 acres 2,838 acres
Helensvale, Queensland
Acres of remaining developable land bank to be developed over 10 -25 years
Estimated Remaining Gross Development Value (GDV)
Property Development Property Investment
space in Malaysia and Singapore
Active townships, integrated and niche developments
Hospitality & Leisure
Assets across 4 countries including 2 golf courses (36-hole & 18-hole respectively) and a convention center
Average trading discount to Realised Net Asset Value (RNAV)
Employees
FY18 Revenue
FY18 PBIT
FY18 PATAMI
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Notes:
By Remaining Developable Land By Remaining Gross Development Value (GDV)
O N G O I N G F U T U R E
Legend
3,398 (28%) 845 (7%) 3,278 (27%) 2,826 (23%) 338 (3%) 1,462 (12%) 3,092 (37%) 3,302 (39%) 2,031 (24%) 20.0 (25%) 5.4 (7%) 5.7 (7%) 12.6 (16%) 28.5 (35%) 8.8 (11%) 8.0 (96%) 0.3 (4%) 0.1 (1%)
acres
billion
Refer to slide 51 - 52
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Total Residential Units Total Industrial Components Remaining Acreage Key Catalysts
Elmina East and West Bandar Bukit Raja Serenia City Bandar Universiti Pagoh
Corridor
green spaces
Klang, close to Port Klang and KLIA
university branch outside
to open in 1Q19
Hub, 1st multi-varsity
education hub (506 acres) with ~7200 students
Guthrie Corridor Expressway Klang South Selangor Johor
Remaining GDV
Industrial Acreage Sold
First launch in 1H19
Residential Units Launched
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Forest Reserve DASH Elmina East 1,089 acres Denai Alam & Bukit Subang 1,250 acres RRI Bukit Jelutong 2,205 acres Elmina West 2,661 acres Kota Elmina 1,540 acres Lagong 1,552 acres
Total land bank along Guthrie Corridor Expressway
Remaining developable land bank
developments
Elmina and Lagong)
Estimated remaining GDV
Total residential units with over 28,400 remaining units to be launched
Good connectivity:
GCE, DASH, NKVE, LATAR and NSE Mass Rail Transit-1 (MRT 1) and Keretapi Tanah Melayu Line (KTM)
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KEY HIGHLIGHTS
(Remaining: 3,095 acres)
Elmina City Centre straddles both sides of the GCE from the Elmina West to Elmina East, forming a prime integrated development hub
Estimated Remaining GDV
Total estimated residential units
Elmina Central Park
Tasik Subang Dam Forest Reserve
Wellness Cluster
Combined jogging and cycling track
FY2018 HIGHLIGHTS
An Award-Winning Township
Architectural Design
Township Development
Design Development
Delivery of residential units from Elmina Valley 1,2 and 3
Total residential units launched since 2013
(FY2018: 470 units)
RM587k - RM1,453k (RM340 – RM513 psf)
priced between RM600k – RM2,308k (RM307 – RM564 psf)
unsold completed units and 27 unsold ongoing units launched prior to FY2018
Acres of industrial land sold (RM89 – RM127psf)
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KEY HIGHLIGHTS
4,333 acres (Remaining: 2,826 acres)
Close proximity to KLIA and Port Klang
RM12.6bn
Estimated Remaining GDV
21,857 units
Total estimated residential units
82,000 residents
Expected population at full capacity
710 acres
Industrial components
125 acres
Town Park
High Connectivity
via major road infrastructure New North Klang Straits Bypass (Shapadu Highway) and upcoming West Coast Expressway (WCE)
FY2018 HIGHLIGHTS
Acres of industrial land across 10 plots for built-to- suit industrial facilities. Potential tenants include food manufacturers and global logistics services provider
Acres of industrial land sold to Vinda Group, one of the largest producers
products
RECENT INDUSTRIAL DEVELOPMENTS
units launched since 2011
(FY2018: 388 units)
(RM142 – 459 psf)
delivery of completed detached factories in FY2018
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KEY HIGHLIGHTS
2,370 acres (Remaining: 1,462 acres)
Close proximity to Kuala Lumpur, Putrajaya, Cyberjaya and KLIA
RM8.8bn
Estimated Remaining GDV
13,234 units
Total estimated residential units
196 acres
Industrial components
High Connectivity
Accessible via ELITE Highway, Federal Road, ERL & KLIA
Development Catalysts
12 minutes to KLIA and 27 minutes to KL Central via the Salak Tinggi Station
First Chinese university branch campus in Malaysia with a total capacity of 10,000 students, with 3,300 current student
One-storey retail lots over total net lettable area of 400,000 sq ft with 2,000 covered parking bays. Target to be completed by 1Q 2019.
An integrated development by Sunsuria which commenced in November 2015
take-up in the first hour
acres of industrial land sold to date starting from RM60 psf
Serenia Amani (2-storey house)
302 units From RM536,888 (RM293 – RM 400 psf)
FY2018 HIGHLIGHTS
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(Remaining: 3,262 acres)
Malaysia’s First Integrated Township with an Education Hub
Estimated Remaining GDV
Total estimated residential units
Industrial components
Earmarked for affordable housing
Pagoh Education Hub Launches to date with total GDV of >RM108mn
Harmoni Vista (2-storey house)
383 units From RM365,888
Sarjana Square (Shop Office)
35 units From RM888,888
Sarjana Promenade (Shop Office)
35 units From RM950,000
To Johor Bahru
Pagoh Toll
delivery of completed commercial units in FY2018 (Sarjana Square)
Residential units launched to- date (Harmoni Vista 1)
unsold completed units and 12 unsold ongoing units launched prior to FY2018
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1
~RM30 mil to ~RM50 mil over the 19 years
varsity education hub in the country situated within Bandar Universiti Pagoh (BUP)
Facilities Management Services (FM)
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Stable Recurring Cash Flow in the Next 19 Years
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The education hub as a key Catalyst to BUP
Concession Agreement between Sime Darby Property and Tunas Selatan Construction Acres of development
Major Institutions
Maximum student capacity with 7,200 current student population Year of completion
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Financial Performance FY2018
RM’m
PBIT 36.5 Accretion of interest 92.6 Interest income 2.5 Finance Costs (65.6) Profit Before Tax 66.0
(availability charges)
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The infrastructure work and construction of the dual carriageway is ONGOING
MVV Total Area: ~27,000 acres
Sime Darby Property’s Interest:
Owned: Parcel A of 2,838 acres MVV Option Agreements with SD Berhad: 8,796 acres
Key Catalyst:
A new 16.8km dual carriageway linking Nilai and Labu to Bandar Enstek Expected completion by July 2021
State Government’s Support
Nilai
16.8km dual-carriageway
Chemara Hills (44 acres)
Parcel A: 2,838 acres
Additional 8,796 acres 16.8km NLE Dual Carriageway Existing KTM Rail
The State Government’s commitment to spur economic growth is in line with our strategy to accelerate the MVV development
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SJ 7
6T
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A Flourishing Bloom
GDV of RM744 mil
launched has been sold
Galleria, KL East
380,000 sqft retail space
Quarter 2019
Grocer, Camp 5, Blue Frost Ice Rink
160 acres (Remaining: 50.8 acres)
Ideally situated within Klang Gates quartz ridge, the longest quartz ridge in the world
RM2.2 bn
Estimated remaining GDV
2,458 units
Estimated residential units
53 acres
Forest park
High Connectivity
MRR2
Integrated Transportation Terminal (LRT Kelana Jaya Line and RapidKL bus hub)
Access to Kolej Yayasan Saad
expected student capacity of 1000 students
TO GOMBAK (19 min / 15km) TO AMPANG (25 min /17km)
KYS International School (6 acres)
The Veo Gombak Integrated Transport Terminal (GITT)
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30 acres (Remaining: 28.1 acres)
Centrally located within Subang Jaya matured township
RM3.6 bn
Estimated remaining GDV
3,350 units
Estimated residential units
Easy access via
from KTM Komuter Subang Jaya and LRT Subang Jaya station
Nearby to
minutes to INTI International College
Parade, Empire Shopping Gallery
Serviced Apartments
2.23 acres
development
RM270.5 million
November 2021
Target completion date
361
units launched to date
54%
Take up rate as of August 2018 Price per unit from
RM609,888 to RM1,015,888
Subang Parade AEON Big
Subang Avenue
P e r s i a r a n K e w a j i p a n
Future Development Future Development
Subang Jaya LRT and KTM Komuter Station Empire Shopping Gallery
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880 acres (Remaining: 1.0 acres)
Tranquil residential park set against dramatic landscape
RM0.6 bn
Estimated remaining GDV
5,178 units
Estimated residential units
Nearby
walk)
Stylish Living Above The Rest
3.64 acres
development
RM361 million
August 2018
Target completion date
2 towers - 528 units
(633 – 1494 sqft) launched
58%
Take up rate as of August 2018 Price per unit from
RM 456,888
Melawati Mall Serini Melawati
Central Park Melawati
Damai Service Hospital
international brands
time
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62 acres (Remaining: 50.5 acres)
Ideally located in the pristine landscape of Bukit Kiara
RM7.1 bn
Estimated remaining GDV
2,465 units
Estimated residential units
2 acres of Sky Park Garden
Recreation and relaxation facilities
Layers of Luxury
4.03 acres
development
RM941 million
429 units of serviced apartment
launched
50%
Take up rate as of August 2018
Future Development Jendela
Future Development
Overview of Projects
Suites
units
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7.12 acres
Located in the heart of Ara Damansara, Petaling Jaya
RM659 million
Estimated remaining GDV
2,465 units
Estimated residential units
6 acres
Skypark recreational areas
Recent Developments 700 units
Serviced apartment launched in May 2016
May 2020
Target completion date Selling price per unit from
RM549,888
52%
Booking rate as at 31 Aug’18 Overview:
Bridge and Annex
apartment
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30 MAY
Reported that HSR has been scrapped in a move to control government’s spending and reduce debt
12 JUN
KL-Singapore high-speed rail is postponed for further review - not scrapped
19 JUN
A cheaper option to upgrade the railway link between KL and Singapore by upgrading the existing KTM Rail Network
Brief facts of HSR and KTM Rail Network:
HSR KTM Rail Projected Cost ~ RM65 bil < RM20 bil
90 mins 130 mins Speed 320 km/hr 200 km/hr Proposed Work New alignment Upgrade existing alignment, will largely be in Johor Key Difference Duplication of existing rail network Complements existing network
Sime Darby Property is in ongoing conversation with both Federal and State Governments
3 SEP
HSR has been reported to be postponed by two years to May 31, 2020 to allow Malaysia time to review the project
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Kulai, Johor Kulai estate - A: 1,862 acres Kulai estate - B: 3,186 acres
Agreement
with Sime Darby Plantation
1 1 , 8 0 6 a c r e s
SD Plantation entered into 9
call option agreements
with SD Property pursuant to which SD Property has options to purchase these lands at
future market value Options Validity: 5
years effective
Nov’2017, extendable by 3 years
Selangor Sepang estate: 2,000 acres Lothian Estate: 485 acres Sungai Kapar estate: 993 acres West Estate, Carey Island: 2,000 acres Byram estate: 864 acres Ainsdale estate: 268 acres Bukit Selarong estate: 148 acres Kedah Penang Negeri Sembilan
Agreement
with Sime Darby Berhad
8 , 7 9 6 a c r e s
Kumpulan Sime Darby and Sime Darby Property entered into several call option agreements for lands within the MVV development
region Options Validity: 5
years effective
Nov’2017, extendable by 3 years
Labu, New Labu (Kirby), New Labu (Main) and Hamilton estates
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Northern Line Extension
TOTAL RESIDENTIAL UNITS LAUNCHED 867 253 539
Take-up: 99% Take-up: 90% Take-up: 71%
Target completion by end-2020
Phase 1 Phase 2 Phase 3A
Phase Two Commercial Assets 100% of commercial space taken up
Total ~1 million sq. ft. of Net Lettable Area comprising:
Main tenants: ~470k sq. ft. and ~40k sq. ft. Target to sign with PNB and EPF for Proposed Disposal of Power Station by December 2018
Successful completion and handover of Phase 1
Total share of profit recognized Remaining 12 units of high-end penthouses left
FY17 RM140m FY18 RM94m RM234m
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Since the Mall started operations in July 2017:
brands
10 plots to be jointly developed for built-to-suit industrial facilities via 50:50 JV with Mitsui
Vinda Group
Sime Darby Property’s Inclusion into FTSE4Good Index and Dow Jones Sustainability Index
index constituent for 1. FTSE4Good Bursa Malaysia Index and FTSE4Good ASEAN 5 Index (For the period of Jul’18 to Jun’19) 2. Dow Jones Sustainability Emerging Market Index (Effective Sep’18)
commitment in ensuring only the highest standards in ESG practices
Delivery of completed units in FY2018: 2,305
Township Units Elmina 853 Taman Melawati & KL East 459 Putra Heights 340 Taman Pasir Putih 292 Nilai 178 Bandar Bukit Raja 84 Others 99
1 2 3 4
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Launching new growth areas Re-balancing & expanding development portfolio income Enhancing
customer experience #1 #2 #3
F I V E K E Y S T R A T E G I C O B J E C T I V E S
Achieving Cost & Operational Efficiencies #4 Elevating Organisational Effectiveness #5 STRATEGIC PRIORITIES
GDV and review strategic masterplan
capabilities & income contribution
Segment: Industrial & Logistics Development
affordable housing projects
driven customer insights
community marketplace and digital innovation
management
Management’s business model
development cycle for both township & integrated products
management governance
strategic partnership model
performance management
Consistent Shareholders’ Return Sustainable PATAMI growth Consistent Sales Performance The Preferred Employer within Real Estate TARGETS BY 2023 KEY ENABLERS
Brand value & marketing People & HR capabilities Operating Model & Business Process Innovation & technology
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Prioritise on growth of high performing townships to extract highest economic value Drive cost reduction initiatives to enhance profitability
Three-pronged approach to maximize investment returns of
Earmark potential developers to co-develop ongoing and greenfield townships as a mean to:
sizeable land bank
and resources Strategic land sale outside key development focus to:
via other developers
value Target disposal:~1,700 acres K e y A r e a s O n g o i n g J V P a s t R e c o r d s 2015: Elmina land (135 acres) to E&O 2016: Serenia City land (375 acres) to Sunsuria & Semenyih land (238 acres) 2017: Semenyih land (803 acres) to I&P 2018: New Lunderston land (298 acres)
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Completed
Future Launches
Ongoing Launches
challenges around cost and
quality issues
(TOD) and Transit Adjacent (TAD)
developments
team for central Project
Management and Strata Management Two-Pronged Approach
industrial land with an estimated GDV of ~RM5.1bn
BBR1 & 2 and Serenia City to be developed as Industrial Build-to-Suit facilities and retained by Property Investment as a recurring income pool
groups:
products
Quality
adopt portfolio perspective
Township Development Integrated Development Unsold Completed And Ongoing Stocks Industrial & Logistics Development Portfolio
Review campaign strategy & increase incentive Plan towards achieving zero incoming stock Review pricing and positioning
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Actively grow high-yielding asset portfolio
Generate recurring income via BTS and Managed Industrial Business Parks To achieve 10% of PBIT contribution by FY2023 via:
(BTS) and Managed Industrial Business Parks
recurring income
party assets
assets in Australia, Singapore & Vietnam by Dec 2019
existing strategic partnerships
partnerships with Industrial experts to transform our land bank into a thriving industrial / logistics park
Bandar Bukit Raja is the first step
Actively grow high-yielding asset portfolio
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Rigorous focus on monetising non-strategic land bank and non-core assets
to Eastern & Oriental (E&O): RM48mil
Avenue Mall: RM55mil
stake in Sunsuria JV: RM157mil
land to Sunsuria and 238 acres
land: RM320mil
Equatorial Hotel in Melaka and 2 properties in Singapore: RM486mil
acres of Semenyih land to I&P: RM413mil
investment property in Singapore: RM131 mil
acres of New Lunderston estate land: RM84mil
equity stake in Seriemas Development and 100% stake in MLDC: RM318 mil
Beyond Target disposal of ~1,700 acres of land
hospitality assets
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33 419 931 1,203 824 683 2,630 3,624 3,371 2,611 2,353
FY2014 FY2015 FY2016 FY2017 FY2018
Revenue
RM’mn
Profit Before Interest & Tax
RM’mn
Gross Sales Value
RM’mn
Units Sold
Units
Return on Shareholders’ Funds (ROSF)
29% 32% 36% 26% 16% Margin 10.0 16.0 18.0 11.0 8.0 2,750 2,134 1,745 1,917 2,250
%
3,049 1,659 1,894 1,765 3,045
FY2018 SE RM9.73bn 5-Year Average ROE:
12.4%
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In RM’m
4QFY18 4QFY17 YOY % FY2018 FY2017 YOY % Revenue 617.4 1,139.5 (46) 2,353.1 2,610.9 (10) Segment Results 45.8 421.3 (89) 364.9 719.2 (49) PBIT 45.5 435.8 (90) 682.5 823.7 (17) PBT 73.8 455.1 (84) 728.4 888.8 (18) PATAMI 46.6 327.7 (86) 640.0 624.0 3 Basic EPS (sen) 0.7 8.4 (92) 11.1 16.5 (33)
RM53m in 4QFY17)
inventories - RM40m
– RM131m
REIT 1 – RM135m
equity disposals not subjected to tax
to disposal of Glengowrie land
C O M M E N T A R Y
4QFY2018 vs 4QFY2017 FY2018 vs FY2017
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Excluding one-off items of RM406m in FY2018, core PBIT higher by 143% driven by higher sales and development activities and profit from Concession Arrangement
Compulsory acquisition / land disposal gains 469 Gain on disposal of SD Property (Alexandra) 131 Project abortive cost on the termination of Saizen REIT (25) Share of gains from the disposal of an investment property by SD REIT 1 135 Total one-off items (86% of total PBIT)
710
FY2017 Core PBIT:
114
Land disposal gains 88 Gain on disposal of MLDC and Seriemas 318 Total one-off items (59% of total PBIT)
406
FY2018 Core PBIT
277
One-off items in FY2018: One-off items in FY2017:
277 114 406 710 FY2018 FY2017 PBIT
PBIT excluding
One-Offs
RM824mil RM683mil
Lower
gains in FY2018 by RM304mil
143% R E V E N U E
RM’m
FY2018 FY2017
Reported revenue 2,353 2,611 Land sales (89) (482) Revenue excluding land sales 2,264 2,129 10% 6%
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FY2017 FY2018
352 2 (26) 36 570 158 (15) 6
Property Development Property Investment Leisure & Hospitality Concession Arrangement
Improved earnings from operation
Elmina West, Elmina East, Serenia City and Bukit Jelutong townships and Cantara Residences and Serini Melawati
RM14.3m (+198%) from the sale of 21 plots of residential land FY18 included:
RM40m
FY17 included:
38% 99% 80% 500% Lower share of JVs / associates
share of profit of RM135m from the disposal of a property by SD REIT 1 Higher operating losses
contribution from Sime Darby Convention Centre & TPC KL
impairment of property, plant and equipment
FY17 Strong performance
equipment profit recognised of RM30m (FY17: RM6m)
segment consisted of facility and asset management services following the completion
the Pagoh Education Hub
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21 (0.5) (8) 34 274 140 (4) 11
Property Development Property Investment Leisure & Hospitality Concession Arrangement
Lower operating profit
Elmina West, Denai Alam, Serini and Bandar Universiti Pagoh 4QFY18 included:
RM40m
4QFY17 included:
RM209m
92%
4QFY2018 4QFY2017
100% 97% 209% Largely due to one-off items in 4QFY2017
disposal of a property by SD REIT 1 of RM135m
investment property in UK of RM14m Higher operating losses
contribution from Sime Darby Convention Centre & TPC KL Strong performance
equipment profit recognized of RM34m (4QFY17:RM11m)
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Short Term 496 (20%) Long Term 2,046 (80%)
FY2018
1,129 749 (589) 342 (120) (12)
Beginning Balance Cashflow from Operating Cashflow from Investing Cashflow from Financing Foreign Exchange Ending Cash Balance
C A S H F L O W
(RM’m)
largely due to high working capital of RM770m (FY17: RM25m)
and trade and other payables due to increased development activities
Activities due to:
companies of RM348m
Short Term 275 (13%) Long Term 1,789 (87%)
FY2017
mainly to fund the acquisition
November 2017
T O T A L B O R R O W I N G S
(RM’m)
Total 2,064
Gross D/E Ratio (FY17:31%)
Net D/E Ratio (FY17:14%)
HDA cash RM581m HDA cash RM492m
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1,393 1,614 799 836
FY2017 FY2018
Launched Completed
launched developments
RM’m
Units:
RM2,192m RM2,450m
12% YoY Key Completed Projects
Carrying Value:
Alya KL The Glades KL East Tmn. Melawati Chemara East Planters' Haven Elmina West Others
378 101 62 59 53 46 28 109 104 39 54 51 58 67 53 222
Oasis Ara D’sara Bdr. Ainsdale Elmina KL East & Tmn. Melawati Ara D’sara
& Denai Alam
253 243 234 186 158 136 Carrying Value:
Alya KL SJCC Serenia City Pagoh Others
68 64 45 43 184
Key Ongoing Launched Projects
Completed and Launched Inventory Inventory (Property Development Expenditure)
RM’m
FY17 FY18
Current
2,387 2,464 3%
Non-current
1,227 1,866 52%
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Gross Sales Value 1,933 2,250 16%
statutory units with GSV of RM150m)
74%
followed by Negeri Sembilan (7%) and Johor (2%)
386 294 279 277 228 173 122 111 101 55 52 50 47 38 26 11
BBR 2&3 Elmina East Elmina West Putra Heights Denai Alam & Bukit Subang Serenia City Ara D'sara SJCC Nilai BBR 1 Bukit Jelutong
Pagoh & Tmn. Pasir Putih KL East Tmn Melawati Others*
FY2018 Year-on-Year Performance FY2018 Sales Breakdown by Township
RM’m
* Others: USJ Heights and Saujana Impian
Klang Guthrie Corridor Greater Klang Valley Negeri Sembilan Johor
1,766 3,045
RM’m
72% Units Sold
2017 2018 2017 2018
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194 179 174 24 347 56 205 186 176 159 106 55 29 3 56 54 31 Elmina West Denai Alam & Bukit Subang Elmina East Bukit Jelutong BBR 2&3 BBR 1 Putra Heights Ara D'sara ALYA Serenia City SJCC KL East Tmn Melawati Others* Nilai Bdr. Ainsdale Pagoh & Tmn. Pasir Putih
33% QoQ (31 Mar’18: RM1,531 million) 22% YoY (30 Jun’17: RM1,670 million)
Along Guthrie Corridor Expressway (GCE)
(BBR)
Klang Greater Klang Valley Negeri Sembilan Johor
* Others: USJ Heights and Saujana Impian
QoQ %:
(9) 93 (9) 32 >100 (30) >100 (14) (5) >100 61 46 11 (40) 63 (15) 9
RM’m
BBR 2&3
571 403 919 110 31
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681 2,709 1,176 358 494 1QFY18 2QFY18 3QFY18 4QFY18 FY2018
GSV of Launches: RM2,709mn
17% 41% 30% 12%
RSKU (<RM250k) RM400k - RM800k RM800k - RM1.2mn >RM1.2mn
42% 39% 12% 6% 1% Along Guthrie Corridor Greater Klang Valley Klang Negeri Sembilan Johor Total Units
1,983 995 580 540
Note: Includes the launch of Rumah Selangorku of 1,700 apartments at Putra Heights in 1QFY18
Take-Up Rates
52% 68% 83% 69%
RM’m
Breakdown by Location Breakdown by Price (Residential only)
1,346 FY2017
4,098 63% 1,717 59%
(Azira), Serenia City (Serenia Amani), SJCC (Lot 15), Bandar Ainsdale (Redup) & Nilai Impian (Orkid)
101%
81% of total launches:
139%
Residential 667 (98%) 841 (71%) 325 (91%) 494 (100%) 2,327 (86%) 1,088 (81%) 14 (2%) 35 (3%) 33 (9%)
133 (10%)
125 (9%) Industrial Commercial
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Breakdown by Type Breakdown by Location Breakdown by Price (Residential only)
38% 31% 7% 18% 6%
DSLH Condo / Apartment Semi D / Superlink / Bungalow Industrial Commercial
39% 22% 17% 14% 8%
Greater Klang Valley Along Guthrie Corridor Negeri Sembilan Klang Johor
13% 54% 2% 31%
<RM400k RM400k - RM800k RM800k - RM1.2m >RM1.2m Elmina West (EG4) (2-storey house)
: 194 units
: RM137.7mn
: 176 units
: RM97.5mn Serenia City (A3) (2-storey house) Elmina West (Harmoni 1) (Apartment)
: RM131.0mn
: 234 units
: RM170.6mn SJCC (Lot 61714) (Serviced Apartment)
: 72 units
: RM80.3mn Putra Heights (HT5T4) (Condominium)
GDV of Launches
Total Estimated Units
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Re-introduction of Sales and Service Tax (SST) National Housing Policy Oversupply of high-rise medium range properties
faster than the absorption rate
inventory in Selangor may affect the sales volume of ongoing / new launches Slowdown in Malaysian economy
forecast of 5% from 5.5%
and uncertainty on the effect of the implementation
and see” approach
sales performance
affordability of home buyers
scope and parameters of proposed policy
deliver affordable houses
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3.25 3.00 2.70 2.80 2.90 3.00 3.10 3.20 3.30 3.40 3.50 3.60 %
Source: Bloomberg and Bank Negara Malaysia
Q2 2017 respectively. The slight contraction in growth was attributed to commodity-specific shocks.
steady growth path supported by robust private consumption, positive labour market conditions and investment. GDP is expected to hover between 4.8 – 5.1% over the next 7 quarters.
Historical Forecasts
3.25 – 3.55%
Historical Forecasts 5.9 5.0 4.8 4.7 4.1 4.0 4.3 4.5 5.6 5.8 6.2 5.9 5.4
4.5
0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 %
4.8 - 5.1%
Gross Domestic Product (GDP) Year-on-Year Overnight Policy Rate (OPR)
3.25% in September 2018 by Bank Negara Malaysia as the economy faces downside risks from heightened trade tensions in the immediate term.
points are expected at the beginning of 2019, in-line with forecasted improvements in the economy.
47
10 20 30 40 50 60 5,000 10,000 15,000 20,000 25,000 30,000 RM mil' Loan Approval Rate (RHS) Loans Approved Loans Applied
Source: Bloomberg, National Property Information Centre and Bank Negara Malaysia %
160.2 162.8 167.1 167.8 171.8 174.4 178.5 179.5 183.3 186.3 190.1 190.5 190.8
0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 10.0 140.0 145.0 150.0 155.0 160.0 165.0 170.0 175.0 180.0 185.0 190.0 195.0 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018
Index YoY% (RHS)
Loans Applied & Loans Approved for Residential Property Purchase The Malaysian House Price Index
stood at 37%, marginally lower than 42% a year earlier and the 3- year average of 43%.
to hover around the current levels in the coming months.
steady upward trend albeit at a slower pace year-on-year, growing at 4.1% in Q1 2018 vs. 6.7% in Q1 2017.
trend sideways without any major fluctuations.
% Index
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Source: National Property Information Centre
approximately 6% year-on-year in Q1 2018, predominantly due to the decline in unsold units under construction and unsold units not constructed despite an increase in overhang units, consistent with trends in both Selangor and Johor.
higher total number of unsold units mainly due to unsold not constructed and unsold under construction respectively.
5% 8% 12% 25% 22% 19% 19% 30% 17% 25% 48% 34% 86% 73% 68% 69% 72% 65% 66% 61% 47% 57% 2% 3% 10% 12% 9% 5% 17% 14%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Q1 17 Q1 18 Q1 17 Q1 18 Q1 17 Q1 18 Q1 17 Q1 18 Q1 17 Q1 18 KL Selangor
Johor Malaysia
Overhang Unsold under construction Unsold not constructed
13,917 13,975 15,975 15,361 3,076 4,091 19,155 16,731 106,394 100,459
all price categories with the greatest decline in the RM500k – RM1mn segment.
decline in total unsold units, the decline in units was mainly in the RM200k – 500k price segment.
Sembilan increased, primarily due to the increase in the RM200k – 500k price segment.
13% 6% 16% 19% 5% 7% 18% 21% 18% 18% 33% 46% 28% 23% 43% 59% 32% 30% 43% 45% 38% 34% 42% 43% 46% 30% 37% 37% 28% 28% 17% 13% 13% 15% 7% 4% 13% 12% 10% 9%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Q1 17 Q1 18 Q1 17 Q1 18 Q1 17 Q1 18 Q1 17 Q1 18 Q1 17 Q1 18 KL Selangor
Johor Malaysia
<RM200K RM200K - 500K RM500k - RM1mn >RM1mn
Unsold Units Based on Category
Total Units: 13,917 13,975 15,975 15,361 3,076 4,091 19,155 16,731 106,394 100,459 Total Units:
Unsold Units Based on Price Segment
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This presentation does not constitute and is not an offer to sell or the solicitation of an offer to buy securities of any company referred to in this presentation in the United States or elsewhere. The companies referred to herein have not registered and do not intend to register any securities under the US Securities Act of 1933, as amended (the “Securities Act”), and any securities may not be offered or sold in the United States absent registration under the Securities Act or an exemption from registration under the Securities Act. By attending the presentation you will be deemed to represent, warrant and agree that to the extent that you purchase any securities in any of the companies referred to in the presentation, you either (i) are a "qualified institutional buyer" within the meaning of Rule 144A under the Securities Act, or (ii) you will do so in an "offshore transaction" within the meaning of Regulation S under the Securities Act. This presentation may contain forward-looking statements by Sime Darby Property Berhad that reflect management’s current expectations, beliefs, intentions or strategies regarding the future and assumptions in light of currently available information. These statements are based on various assumptions and made subject to a number of risks, uncertainties and contingencies. Actual results, performance or achievements may differ materially and significantly from those discussed in the forward-looking
performance or achievements of Sime Darby Property Berhad and Sime Darby Property Berhad assumes no obligation or responsibility to update any such statements. No representation or warranty (either express or implied) is given by or on behalf of Sime Darby Property Berhad or its related corporations (including without limitation, their respective shareholders, directors,
employees, agents, partners, associates and advisers) (collectively, the "Parties") as to the quality, accuracy, reliability or completeness of the information contained in this presentation (collectively, the "Information"), or that reasonable care has been taken in compiling or preparing the Information. None of the Parties shall be liable or responsible for any budget, forecast or forward-looking statements or other projections of any nature or any opinion which may have been expressed or otherwise contained or referred to in the Information.
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Email Address : investor.relations@simedarbyproperty.com Telephone : +(603) 7849 5000 Website : https://www.simedarbyproperty.com/investor-relations
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~21k acres of remaining developable land bank with a remaining GDV of RM89.3bn
Township/Development Name Total Area (Acres) Remaining Developable Area (Acres) Remaining GDV (RM’bn) Niche / Integrated ALYA, Kuala Lumpur 62 50.5
7.1
Chemara Hills, Seremban 44 3.0 0.04 USJ Heights, Subang Jaya 375 11.1 0.2 SJ 7, Subang Jaya 40 34.6 5.3 SJCC, Subang Jaya 30 28.1 3.6 KL East 160 50.8 2.2 Township City of Elmina: Elmina West, Shah Alam 2,661 2,511.5
15.4
City of Elmina: Elmina East, Shah Alam 1,089 583.2
2.5
City of Elmina: Denai Alam & Bukit Subang 1,250 143.9
1.0
Bandar Bukit Raja 2 & 3, Klang 2,820 2,665.0
11.5
Bandar Bukit Raja 1, Klang 1,513 160.6
1.2
Serenia City, Dengkil, Sepang 2,370 1,462.0
8.8
Putra Heights, Subang Jaya 1,796 77.4
3.4
Ara Damansara, Petaling Jaya 693 80.3
6.0
Bukit Jelutong, Shah Alam 2,205
159.6 1.2
Saujana Impian, Kajang 600
4.1 0.03
Taman Melawati, Ulu Klang 880
1.0 0.6
Nilai Impian 2, Nilai 546
426.0 3.1
Nilai Impian 1, Nilai 1,263
163.5 1.0
Bandar Ainsdale, Seremban 562
169.3 1.2
Planters' Haven, Nilai 250
83.6 0.1
Bandar Universiti Pagoh, Muar 4,099
3,262.0 5.5
Taman Pasir Putih, Pasir Gudang 356
16.3 0.2
TOTAL ONGOING DEVELOPMENT 25,664 12,147 80.9 TOTAL FUTURE DEVELOPMENT 8,425 8.41 GRAND TOTAL 20,572 89.3
Note: 1. Future remaining GDV is preliminary and currently excludes MVV
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Development Area Total Area (Acres) GDV (RM bn) Kedah 1,639
300
1,268
Victoria Estate 71
3,328 8.03 Kota Elmina 1,540 6.86 Lagong 1,552 1.17 Jalan Acob Estate 236
3,302 0.31 Chemara West 20
95 0.31 Ladang Sua Betong 373
934
1,880
144
144
12 0.06 Total Future Development 8,425 8.40
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first township – Taman Melawati (880 acres)
United Estates Projects Bhd, the developer of Subang Jaya township
(2,241 acres)
Guthrie Berhad launched its first township – Bukit Jelutong (2,205
acres)
comprehensive township at the Pajam Nilai interchange along the North- South Expressway
merger of Kumpulan Sime Darby Bhd, Kumpulan Guthrie Bhd and Golden Hope Plantations Bhd
Power Station for GBP400mn (42 acres)
learning institutions to develop Pagoh Education Hub
Elmina East
(2,370 acres)
Taman Melawati Subang Jaya Bukit Jelutong
connect Shah Alam to Rawang City of Elmina
November 2017
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Largest developable land bank in Malaysia
Strategic locations with full spectrum of products Recognised brand with established track record
We are in execution mode to fundamentally transform Sime Darby Property
RM89.3bn
Options Agreements with Sime Darby Plantation Berhad and Sime Darby Berhad
developments in Bandar Universiti Pagoh and ALYA
City of Elmina, Selangor Bandar Bukit Raja, Klang
affordable-to-medium range of properties
activities and superior accessibility to major road systems and railways
Expressway (GCE) and West Coast Expressway
Transit Oriented / Adjacent Developments
development
and distinctions
Taman Melawati Subang Jaya Since 1972 Since 1976
Putra Brand Awards 2017 Gold Award in Property Category (7 consecutive years) StarProperty.my Awards 2017 Top Ranked Developers
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Non-Independent Non-Executive Chairman
Tan Sri Dr. Zeti Akhtar Aziz
Group Managing Director
Dato’ Sri Amrin Awaluddin
G o v e r n a n c e & A u d i t C o m m i t t e e R i s k M a n a g e m e n t C o m m i t t e e N o m i n a t i o n & R e m u n e r a t i o n C o m m i t t e e T e n d e r C o m m i t t e e
Total Board Members
Independent Directors
Women Directors
Sime Darby Property Board
corporate governance
risk management framework and efficacy
relating to the nomination
assessment of Group Managing Director and his direct reports
awarding material contracts
Management Team
Operational excellence and value creation Efficient employment of company resources to deliver value to shareholders
Non-Executive Directors Develop long-term strategies for sustainable growth Adhere to the highest standards on Environmental, Social and Governance (ESG) practices
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Encik Rizal Rickman Ramli Non-Independent Non- Executive Director Dato' Sri Amrin Awaluddin Group Managing Director Datuk Tong Poh Keow Executive Director Dato' Johan Ariffin Independent Non- Executive Director
Tengku Datuk Seri Ahmad Shah Alhaj ibni Almarhum Sultan Salahuddin Abdul Azjz Shah Alhaj
Independent Non- Executive Director Dato' Jaganath Derek Steven Sabapathy Independent Non- Executive Director Dato' Seri Ahmad Johan Mohammad Raslan Independent Non- Executive Director Datuk Dr Mohd Daud Bakar Non-Independent Non- Executive Director Datin Norazah Mohamed Razali Independent Non- Executive Director
Board members have held prominent positions and directorships in public listed companies involving the property sector as well as the banking and finance sectors and in governmental, regulatory and professional bodies
Tan Sri Dr. Zeti Akhtar Aziz Non-Independent Non- Executive Chairman
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Dato' Sri Amrin Awaluddin Group Managing Director
Datuk Tong Poh Keow Chief Financial Officer
Strong management team with relevant experience and a proven track record in the real estate industry
Fairuz Radi Chief Transformation Officer & Head, Group Managing Director’s Office Dato’ Wan Hashimi Albakri Chief Operating Officer – Township Development Quek Cham Hong Chief Operating Officer – Integrated Choo Suit Mae Group General Counsel Azlina Hamzah Chief People Officer Gerard Yuen Yun Wei Chief Marketing & Sales Officer Tang Ai Leen Chief Risk and Compliance Officer Aravindan Devapalan Nair Chief Corporate Assurance Officer