Sime Darby Property Bhd. · MYX:SIMEPROP
Sime Darby Property Bhd — Q1 FY2024 Earnings Presentation
33 slides from Sime Darby Property Bhd's earnings presentation, May 2024
Slide 1: Q1 FY2024 Financial Results Analyst Briefing Presentation
Q1 FY2024 FINANCIAL RESULTS ANALYST BRIEFING PRESENTATION simedarbyproperty.com
Slide 2: Table of Contents
Table of Contents Page 1. Q1 FY2024 Key Highlights 5 2. Financial Performance for Q1 FY2024 9 3. Operational Performance for Q1 FY2024 16 4. Battersea Power Station Updates 21 5. Land Bank Management & Activation Plan 23 6. Malaysian Economy & Sector Outlook 25 7. Strategy Moving Forward 27 8. Inves
Slide 3: Purpose, Vision, Mission and Values
PURPOSE VISION To be a Value Multiplier for Advancing real estate as a force people, businesses, economies for collective progress, in harmony and the planet with the planet's resources MISSION VALUES To develop, own and manage a T - Together we do what's right thriving asset portfolio that E - we l
Slide 4: SD Property's Sustainability Framework
SD Property’s Sustainability Framework Our blueprint for integrating sustainable practices into the core of our business; Serves as a catalyst for positive change in the industry, benefiting all stakeholders NET ZERO PATHWAY OUR PURPOSE To be a Value Multiplier for people, businesses, economies and
Slide 5: Key Highlights
Key Highlights First Quarter (Q1 FY2024)
Slide 6: Q1 FY2024 Financial Highlights
Q1 FY2024 Financial Highlights • Achieved strongest Q1 performance for revenue, operating profit and sales since the demerger • Registered a growth in revenue, operating profit, PBT and PATAMI by 42.8%, 73.1%, 84.6% and 103.7%, respectively • Healthy cash balance of RM647.1m and net gearing ratio of
Slide 7: Q1 FY2024 Operational Highlights
Q1 FY2024 Operational Highlights • Maintained a robust sales momentum in Q1 FY2024 amounting to RM955.9m • Industrial products emerged as the top sales contributor at 30%, followed by 27% residential landed & 25% residential high-rise • Launched RM820.2m GDV worth of diversified products (68% Indust
Slide 8: Q1 FY2024 Corporate Awards & Development Highlights
Q1 FY2024 Corporate Awards & Development Highlights Sime Darby Property won two prestigious accolades - Platinum at Putra Brand Awards 2023 in Property Development Category and FIABCI Malaysia Property Awards 2023 for Environmental Category Jan 2024 Feb 2024 Mar 2024 Apr 2024 SD Property won a Plati
Slide 9: Financial Performance
Financial Performance First Quarter (Q1 FY2024)
Slide 10: Profit & Loss Performance
Profit & Loss Performance • Revenue grew by 42.8% YoY to RM978.7m, driven by a diversified product mix and stronger on-site progress • Recorded PBT at RM180.8m and PATAMI at RM123.6m YoY with an increase of 84.6% and 103.7%, respectively RM mil Q1 FY2024 Q1 FY2023 YoY % Q4 FY2023 QoQ % Revenue 978.7
Slide 11: Revenue & PBT Analysis: Property Development
Revenue & PBT Analysis: Property Development Revenue and PBT grew by 45.4% to RM925.6m and 84.3% to RM170.3m YoY, respectively – driven by robust sales performance and higher site progress from major townships Property Development QoQ YoY Revenue Revenue 925.6 3.2% 956.4 925.6 45.4% RM mil 636.8 RM
Slide 12: Revenue & PBT Analysis: Investment & Asset Management
Revenue & PBT Analysis: Investment & Asset Management • IAM segment recorded revenue growth of 10.7% YoY amounting to RM29.1m • PBT more than tripled to RM12.3m on the back of stronger retail performance and other gains Investment & Asset Management QoQ YoY Revenue Revenue 29.2 29.1 10.7% 26.2 29.1
Slide 13: Revenue & PBT Analysis: Leisure
Revenue & PBT Analysis: Leisure • Revenue improved by 7.6% YoY driven by increased memberships and golfing activities • LBT impacted by the higher depreciation as part of the ongoing asset review exercise Leisure QoQ YoY Revenue Revenue 27.1 11.4% 24.0 7.6% 24.0 RM mil 22.3 RM mil LBT LBT >100% >100
Slide 14: Cash and Debt as at 31 March 2024
Cash and Debt as at 31 March 2024 • Well-capitalised for growth; cash balance remained healthy at RM647.1m, supported by a net gearing ratio of 23.8% • Cash outflow was primarily utilised on PD expenditure, retail expansion and costs associated with land acquisition Cash & Cash Equivalents (RM mil)
Slide 15: Property Development Inventories as at 31 March 2024
Property Development Inventories as at 31 March 2024 • Completed inventories in carrying value amounting to RM312.6m (+28.4% vs 31 Dec 2023) • Completed stocks remain low at 12.2% of total inventories of RM3.8b GDV Inventories in Carrying Value Stocks in GDV & Units 31 March 2024 31 December 2023 RM
Slide 16: Operational Performance
Operational Performance First Quarter (Q1 FY2024) 16
Slide 17: Sales Achieved by Product Type and Location
Sales Achieved by Product Type and Location • Industrial products emerged as the top sales contributor at 30% • Residential landed & residential high-rise achieved maintained strong sales momentum at 27% & 25%, respectively • Commercial products saw a notable increase in sales to 9% (compared to 2%
Slide 18: Sales Performance Breakdown (by Product Type & Year)
Sales Performance Breakdown (by Product Type & Year) • Achieved sales of ~RM1b in Q1 FY2024, representing 32% of full year sales target of RM3.0b • Diversified product mix with industrial products emerging as the top contributor (30%) to the overall sales performance Sales Performance Breakdown (by
Slide 19: Unbilled Sales as at 31 March 2024
Unbilled Sales as at 31 March 2024 • Maintained strong unbilled sales of RM3.6b or 1.1x cover ratio • Majority of unbilled sales located within Greater Klang Valley region • Healthy earnings visibility across the next three years • 58% and 42% split between Township & Integrated Development RM3,620.
Slide 20: Q1 FY2024 Launches
Q1 FY2024 Launches Launched RM820.2m GDV in Q1 FY2024 across Residential High-rise, Industrial & Commercial products Residential High-Rise Industrial March 2024 Jan 2024 BBR3 (i4) – The Detached Factory 64% BBR3 (i14 & i15) – Industrial lots 85% 28 units | RM348.8m take-up 20 units | RM209.9m take-u
Slide 21: Battersea Power Station Updates
Battersea Power Station Updates 21
Slide 22: Battersea Power Station Updates
Battersea Power Station Updates • The Residential Phase 2 & 3A are at 97% & 99% take-up, respectively • Phase 3B KOA: Registered ~50% take-up rate amounting to a GDV of £95.6m as of 8 May 2024 Actual images of 200,000 sq. ft. office space, 50 Electric Boulevard completed in February 2024 Residential
Slide 23: Land Bank Management & Activation Plan
Land Bank Management & Activation Plan 23
Slide 24: Land Bank Management & Activation Update
Land Bank Management & Activation Update • Activated ~170 acres of land in Q1 FY2024; approx. ~70 acres from industrial land activation • Total remaining developable GDV of ~RM115b across ~13,000 acres of remaining land Land Activation Remaining Land Bank & GDV (as at March 2024) PD Land Development
Slide 25: Malaysian Economy & Sector Outlook
Malaysian Economy & Sector Outlook 25
Slide 26: Malaysian Economy & Sector Outlook
Malaysian Economy & Sector Outlook • Malaysia’s GDP grew at 4.2% in Q1 2024, full year GDP projected to grow between 4% - 5% in 2024 driven by domestic growth and improvement in external demand; • Positive outlook and sentiment on the property sector on the back of strong performance and higher acti
Slide 27: Moving Forward: Our Strategy
Moving Forward Our Strategy 27
Slide 28: Our Strategy
Our Strategy Strategy remains intact; focus on execution of our plans towards becoming a Real Estate Company Our Our Purpose Purpose To be a Value Multiplier for people, businesses, SHIFT25 Strategy remains intact and aligned with our Purpose, Vision, Mission, and economies and the planet Values; Ou
Slide 29: Q2 FY2024 Launch Plan
Q2 FY2024 Launch Plan • Total of ~RM1.2b with 841 units to be launched in Q2 FY2024 • 42% from residential landed, 29% from industrial and 25% from residential high-rise in terms of GDV % Q2 FY2024 Units to be Launched: 841| GDV to be Launched: RM1,228.9m FY24 Planned Launches Q2 Planned Launches Pr
Slide 30: Investment Proposition
Property Investment Proposition FOR PE
Slide 31: Investment Proposition
Investment Proposition • Clarity of purpose, strengthened fundamentals and track record for growth • Towards greater income diversification and value multiplication Strong Financial Solid Balance Sheet Revenue Visibility Stable Return Position Q1 FY2024 Sales Committed towards maximising shareholder
Slide 32: Thank you | Q&A
Thank you | Q&A Sime Darby Property Berhad 197301002148 (15631-P) No. 2, Jalan PJU1A/7A Ara Damansara 47301, Petaling Jaya Selangor, Malaysia simedarbyproperty.com
Slide 33: Disclaimer
DISCLAIMER This presentation may contain certain statements that are forward-looking in nature. These statements may contain estimates, assumptions, forecasts or projections made by Sime Darby Property’s management after due inquiry, which are nevertheless subject to various known and unknown risks
Sime Darby Property Berhad — Q1 FY2024 Earnings Presentation on 6ix