Paramount Corp. Bhd. · MYX:PARAMON
Paramount Corp. Bhd — FY2022 Earnings Presentation
39 slides from Paramount Corp. Bhd's earnings presentation, Mar 1, 2023
Slide 1: Investor Relations & Media Presentation FY2022 Results
Investor Relations & Media Presentation FY2022 Results 1 March 2023 1
Slide 2: Overview FY2022
PARAMOUNT Overview FY2022
Slide 3: FY2022 At A Glance
FY2022 At A Glance Revenue PBT Profit for the period RM847.5m RM105.1m RM75.1m YOY 24% YOY 50% YOY 76% Property Sales Properties Launched Average Take-Up Rate Unbilled Sales Debt to Total Dividend Equity Ratio Special Dividend Note: ^ Represented the percentage of units sold for on going projects un
Slide 4: Asset Monetisation Deals in 2022
Asset Monetisation Deals in 2022 - Monetisation of non-core assets to improve returns on assets employed Pre-tertiary education business Gains/loss on disposals 200 150 * Included RM94.4 million fair value gain that form part of the 100 RM462.7 million gain recognised 50 in 2020 when PCB sold its RM
Slide 5: Gross Div Per Share & Payout Ratio
Gross Div Per Share & Payout Ratio Net assets per share sen Dividend Special Dividend Payout Ratio Payout ratio @ 31 Dec 2022^ 35.0 200% ** 186% 180% RM2.36 30.0 160% 25.0 140% Market price per share 120% @ 27 Feb 2023 20.0 29 100% 65% RM0.845 15.0 # 80% 12.0 10.0 60% Price to book ratio 40% 5.0 40%
Slide 6: Land Bank Replenishment (139 acres)
Land Bank* Replenishment (139 acres) Bukit Minyak, Penang (17.9 acres) ▪ Maiden light industrial development in Penang ▪ Projected GDV is RM157 million ▪ Development period 2023 to 2025 Sejati Lakeside 2, Cyberjaya (32.7 acres) ▪ Adjacent to existing landed development, Sejati Lakeside ▪ Projected G
Slide 7: Investments in Digital Business
Investments in Digital Business ➢ Aug 2021, invested RM13.7 million for a 30% equity interest in Fintech Omegaxis Sdn Bhd, the holding company of Peoplender Sdn Bhd (Peoplender), the operator of a peer-to-peer (P2P) financing platform ➢ Tap into the Fundaztic (PCB effective stake: 19.1%) growth pote
Slide 8: Awards & Recognitions
Awards & Recognitions Minority Shareholder Watch Group (MSWG) – ASEAN The Edge Centurion Club The MICHELIN Guide Kuala Lumpur Corporate Governance (CG) and Penang 2023 Scorecard Award 2021 Industry Excellence Award for Highest return on equity over 3 years One MICHELIN Star Corporate Governance Disc
Slide 9: Operational Review
PARAMOUNT ~ Operational Review
Slide 10: Property Sales & Unbilled Sales
Property Sales & Unbilled Sales 37% y-o-y growth in FY2022 sales; New records of sales and unbilled sales Sales and unbilled sales FY2022 Sales RM’ mil Greenwoods Others^ 1,500 1,402 Salak Perdana, 1% Selangor 3% 1,300 The Atera, Bukit Selangor Banyan, 1,135 10% Kedah 1,100 12% Arinna 900 Kemuning U
Slide 11: On-going projects – take up rate & launches
On-going products – take up rate & launches Y-o-y 15% increase in GDV of on-going projects to RM3.2 bn# on the back of 10 projects On-going FY2023 Launched in FY2022 Take up Tentative Existing GDV as at rates Launches Type of projects by 31 Dec Locations As at 31 Dec development subsidiaries 2022 GD
Slide 12: Co-labs Coworking & Scalable Malaysia
Co-labs Coworking & Scalable Malaysia Y-o-y improvement in occupancy rate for all outlets of the coworking division Co-labs Coworking Starling Plus 14% Shah Alam 30% Average occupancy rate @ 31/12/2022 Tropicana Gardens 15% 114,945 sq ft In Klang Valley The Starling 17% Naza Tower 24% Scalable Malay
Slide 13: Financial Review
PARAMOUNT ~ Financial Review
Slide 14: Financial Overview
Financial Overview Y-o-y increase in revenue and PBT by 24% and 50%, respectively FY2022 FY2021 Variance RM’000 RM’000 % Unaudited Audited Revenue 847,464 681,351 +24 Operating profit b4 depreciation & impairment & non- 138,635 92,313 +50 recurring gains Depreciation (include KBLM accelerated deprec
Slide 15: Quarterly Financial Performance
Quarterly Financial Performance All 4 quarters in 2022 shown q-o-q improvements in revenue Revenue (RM’m) PBT (RM’m) 50 350 317 45 42 43 300 40 245 35 33 250 232 202 30 200 168 25 152 150 127 20 16 14 85 15 100 11 10 10 6 50 5 0 0 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 2021 2022 2021 2022 Notes: 3Q2022: Included a
Slide 16: Segmental Analysis
Segmental Analysis Improvements in revenue and PBT in all segments, particularly the property division Group Revenue Group PBT RM847.5m RM681.4m RM105.1m RM70.3m RM’m RM’m 1,000.0 120.0 24% 50% 800.0 100.0 80.0 600.0 60.0 400.0 40.0 20.0 200.0 0.0 FY FY 0.0 2022 2021 FY 2022 FY 2021 Investment & Inv
Slide 17: Property Division Yr on Yr
Property Division Improvement due to more on-going projects and higher sales ^ Yr on Yr Sejati Lakeside 2, Arinna Kemuning The Atera, Selangor ^ Sekitar26, Selangor Selangor Utama, Others ^ • Revenue RM823.4m 1% Selangor 23% 2% Bukit Banyan, Kemuning Kedah • PBT RM104.7m 33% Idaman, Selangor 4% 16%
Slide 18: Coworking Division Yr on Yr
Coworking Division Revenue improved 62% while LBT narrowed by 93% Yr on Yr Revenue FY2022 • Revenue RM9.4m 62% • LBT RM0.6m 93% ➢ All 5 outlets recorded improvement in revenue on reopening of economy ➢ Top 3 outlets in terms of revenue Scalable Malaysia contribution are Shah Alam, Tropicana 20% Gard
Slide 19: Financial Position (31 December 2022)
Financial Position (31 December 2022) Strong balance sheet and liquidity position Shareholders’ Net current Debt to Total funds assets YOY Equity 98% ratio* Cash & bank Unbilled sales Net cash from balances operating activities * Included Private Debt Securities of RM199.2m as at 31 Dec 2022 Gross D
Slide 20: Industry Overview
PARAMOUNT Industry Overview
Slide 21: Property Sales 3Q2022
Property Sales 3Q2022 72% Y-o-Y growth in property sales volume No. of Transactions (Overall) 120,000 Q3/2022 Q2/2022 Q3/2021 105,204 100,000 93,466 80,000 64,989 58,428 61,283 60,000 42,609 40,000 22,998 19,968 20,000 7,740 8,570 9,374 5,325 4,957 2,005 6,433 2,214 1,275 3,068 - Residential Commerc
Slide 22: Unsold Vs Overhang 3Q2022 (residential properties)
Unsold Vs Overhang 3Q2022 (residential properties) Unsold under construction and overhang units decreased Y-o-Y; incoming supply declined 158,745 160,000 Residential Property Incoming Supply 140,000 800,000 55,482 700,000 623,477 594,379 120,000 600,000 500,000 100,000 400,000 80,000 300,000 200,000
Slide 23: Total Overhang 3Q2022
PARAMOUNT Total Overhang 3Q2022 Overhang Units Overhang by Price Range ; Below RM300k | Landed, States with High Overhang Volume Units: 7,473 ; 07% Value: RM1.40 Billion Service Apartment , 14.04% 23,688, 44% Le~ ; 53,222 Units @ \ RM301k — RM500k RM40.16 Billion 5 Units: 10,717 *Exclude SOHO (2,260
Slide 24: Overhang Ageing Profile – key states
Overhang Ageing Profile – 4 key states 24
Slide 25: Outlook 2023
PARAMOUNT ~~ Outlook 2023
Slide 26: PCB Group's Outlook in 2023
PCB Group’s Outlook in 2023 ➢ Target launches = RM1.5bn (7 projects in Klang Valley, Growth Penang and Kedah) ➢ Moving into industrial property sector in Bukit Minyak, ➢ Build development pipeline & recurring Penang income ➢ Ongoing land bank replenishment strategy ➢ Boosting occupancy at coworking
Slide 27: FY2023 Pipeline Launches
FY2023 Pipeline Launches RM1.5bn launches; 53% from existing projects 2023 Indicative Launches Commercial: Industrial: Residential 1H2023 Savana Utropolis Batu High-rise Kawan, Penang Commercial 1% residential RM14m 1H & Bukit Banyan, Landed Industrial 2H2023 Sungai Petani residential & 11% shop Res
Slide 28: Savana, Utropolis Batu Kawan (Batu Kawan)
Penang Serviced Apartment Savana, Utropolis Batu Kawan (Batu Kawan) Subject site Artist Impression Artist Impression Unique selling points Launching in 1H 2023 ➢ 522 units of serviced residences on 3.5 acres of freehold land. ➢ Versatile spaces, which can cater up to 5 rooms from 912 sqft to 1255 sq
Slide 29: Sejati Lakeside 2 (Cyberjaya)
Selangor Landed residential Sejati Lakeside 2 (Cyberjaya) Change to our 3D render Artist Impression Unique selling points Phase 2 launching in 1H 2023 ➢ 234 units of semi-detached home on 32.74 acres of freehold land ➢ An exclusive development with semi-detached homes only with dual recreation exper
Slide 30: Paramount Palmera (Bukit Minyak)
Penang Light Industrial Paramount Palmera (Bukit Minyak) Subject site Artist Impression Unique selling points Launching in 1H 2023 ➢ 58 units of light industrial units on 17.87 acres of freehold land. ➢ These light industrial units that can be adapted to the growth of the business such as expandable
Slide 31: Jalan Ampang Hilir (next to The Atrium)
KL High rise residential Jalan Ampang Hilir (next to The Atrium) Artist Impression Unique selling points Launching in 2H 2023 ➢ 360 units of serviced apartments on 3.59 acres of freehold land ➢ Serene, private and exclusive modern contemporary urban homes with a wide range of curated facilities acro
Slide 32: Bukit Banyan 2 (Sungai Petani)
Kedah Landed residential Bukit Banyan 2 (Sungai Petani) Subject site Artist Impression Unique selling points Launching in 2H 2023 ➢ 1,568 residential units on 137.1 acres of freehold land. ➢ Extension of current Bukit Banyan project, the upcoming new land offers variety of choice from low cost apart
Slide 33: Q&A
Q&A Jeffrey Chew Sun Teong Foong Poh Seng Group Chief Executive Officer Chief Financial Officer Benjamin Teo Chee Siew Pin Deputy Group Chief Executive Officer Chief Executive Officer, Paramount Property 33
Slide 34: Appendices
PARAMOUNT Z Appendices
Slide 35: Diversified Landbank & GDV (31 December 2022)
Diversified Landbank & GDV (31 December 2022) Remaining Gross Remaining Development Period Project Status Undeveloped Lands GDV* (Acres) (RM’m) Start End Northern Bukit Banyan & BLM, Sungai Petani On-going 97.0 382 2012 2027 Batu Kawan, Penang On-going 17.1 1,390 2016 2030 Kemuning Utama, Shah Alam
Slide 36: Inventories (31 Dec 2022)
Inventories (31 Dec 2022) Inventories balances down 19% Vs 31 Dec 2021; almost all are commercial properties 31 Dec 31 Dec Projects 2022 2021 Details As at Cost Cost Completed properties RM’m RM’m RM58m 35 41 • Stratified commercial lots Leased to Co-labs Coworking (carrying value Commercial about R
Slide 37: Group Debt/Total Equity (D/E) Ratio
Group Debt/Total Equity (D/E) Ratio 31 Dec 2022 31 Dec 2021 (Unaudited) (Audited) RM’m RM’m Borrowings 1,015.2 963.1 Cash & bank balances 332.4 178.4 Total equity* 1,665.0 1,690.5 Gross D/E ratio (times) 0.61 0.57 Net D/E ratio (times) 0.41 0.46 Weighted average interest rate (%) - floating 4.50 3.5
Slide 38: Disclaimer
Disclaimer Statement Regarding Unaudited Financial Information The unaudited financial information set forth above is preliminary and subject to adjustments and modifications. Disclaimer on Forward-Looking Statements This presentation may contain forward-looking statements that involve risks and unc
Slide 39: Thank You
Thank You www.pcb.my 39
Paramount Corporation Berhad — FY2022 Earnings Presentation on 6ix