S P Setia Bhd. · MYX:SPSETIA
S P Setia Bhd — Q1 2024 Earnings Presentation
21 slides from S P Setia Bhd's earnings presentation, May 16, 2024
Slide 1: Financial Results & Group Update
Financial Results & Group Update For financial period ended 31 March 2024 16 May 2024 Sapphire by the Gardens, Melbourne 1
Slide 2: Q1 '24 At a Glance
Q1 ‘24 At a Glance Strong profit growth and consistent gearing reduction achieved in Q1 ’24, reaffirming our financial strength and resilience RM1.42 bil RM731 mil RM181 mil 0.45x Q1’ 24 Sales Land monetisation Profit Before Tax Net Gearing Ratio On track to achieve Strategic landbank 56% higher tha
Slide 3: FY 2024 Target – On track
FY 2024 Target – On track Sales target underpinned by progressive sales achievement throughout the year 5,381 acres RM5.38 bil Effective remaining Unbilled Sales landbank at 31 March 2024 RM105.28 bil GDV of effective remaining landbank RM4.4 bil 41 FY 2024 Ongoing Projects Sales Target (Q1 ’24: RM1
Slide 4: Key Financial Highlights
Key Financial Highlights Resilient profit growth, more debt reduction despite economic challenges Sales Revenue PBT RM1.42 bil RM1.48 bil RM181 mil (Q1 ’23: RM1.03 bil) (Q1 ’23: RM968 mil) Q1’ 23 : RM116 mil Borrowings Net Gearing Ratio PATANCI RM9.71 bil 0.45x RM77 mil (Dec ’23: RM10.1 bil) (Dec ’2
Slide 5: Financial Performance
< Setia Financial Performance
Slide 6: Q1 '24 Key Profit Drivers
Q1 ‘24 Key Profit Drivers Our diverse property portfolios, domestically and internationally, underpin our earnings and growth visibility Central RM14 mil (8%) Integrated Development RM11 mil (6%) Land sales RM63 mil PBT (34%) Q1 ’24 Q1 ‘24 Core Property Development RM181 mil PBT: ~65% Southern RM64
Slide 7: Q1 '24 Profitability Analysis
Q1 ‘24 Profitability Analysis Profit growth demonstrating Setia’s effective holistic execution in its operations Gross Profit (RM’mil) PATANCI (RM’mil) Property Development 27% 27% +39% YoY Gross Margin: +26% YoY 337 267 Q4 ‘23 Q1 ‘24 Gross Other JV Net Tax Q1 Q1 Q1 ‘23 ‘24 Gross Profit Profit Incom
Slide 8: Q1 '24 Sales Performance
Q1 ‘24 Sales Performance +37% YoY increase as we secured successful land deals Sales breakdown by geography Sales (RM’mil) Malaysia: Northern UK RM9 mil RM9 mil Australia +37% YoY Malaysia: (1%) (2%) RM27 mil Eastern (2%) 1,420 RM9 mil Johor land deals: (1%) Malaysia: 1,033 • Taman Pelangi Central (
Slide 9: Q1 '24 Land Monetisation
Q1 ’24 Land Monetisation Monetising non-core land with catalytic potential and collaboration opportunities Taman Pelangi Indah 2, Johor Taman Pelangi, Johor Sales proceeds: RM564 mil Sales proceeds: RM167 mil SPA signing 29 February 2024 SPA signing 22 March 2024 Purchaser Senibong Island Sdn Bhd Pu
Slide 10: Q1 '24 Revenue Performance
Q1 ‘24 Revenue Performance +52% YoY increase driven by land sales, along with property development in Vietnam and Malaysia Revenue (RM’mil) Revenue breakdown by geography +7% QoQ +52% YoY Vietnam RM79 mil Australia (5%) 1,476 1,476 RM130 mil 1,385 73 (9%) 424 424 968 38 Revenue 1,312 +13% Q1 ‘24 1.4
Slide 11: Q1 '24 PBT Performance
Q1 ‘24 PBT Performance Southern Region was the largest contributor to Q1’ 24 PBT PBT breakdown by geography PBT (RM ’mil) -36% QoQ +56% YoY Central RM14 mil Integrated 284 (8%) Development Land sales RM11 mil 181 181 RM63 mil (6%) (34%) 116 PBT Q1 ‘24 RM181 mil Southern RM64 mil (35%) International
Slide 12: Operational Updates
< Setia Operational Updates
Slide 13: Unbilled Sales as at March 2024
Unbilled Sales as at 31 March 2024 Providing core development revenue coverage ratio of 1.3x Vietnam Australia RM68 mil RM366 mil (1%) UK (7%) RM247 mil (5%) • Malaysia accounts for 87% of the Group’s unbilled sales as at 31 Unbilled Sales March ‘24 Unbilled Sales • Revenue coverage ratio of 1.3x* R
Slide 14: Remaining land banks
Remaining land banks We have 5,381 acres of effective remaining land banks with a total GDV of RM105.28 billion as at 31 March 2024 GDV: Eastern, International, RM2.8 bil, 3% 44 acres, 1% 35 acres, 1% GDV: Southern, RM16.7 bil, 16% 1,101 acres, 20% GDV: RM11.4 bil, 11% 5,381 acres RM 105.28 bil GDV
Slide 15: Completed Inventories as at Mar '24
Completed Inventories as at 31 Mar ‘24 Reduction of completed inventory in Q1 ‘24 mainly from Southern Region, KL Eco City and Australia RM’mil As at 31 March 2024 2,000 Total Inventories – Completed Stocks Region RM’ mil Units 1,766 Integrated 1,800 1,721* 861 291 1,656 Development 1,600 Central 27
Slide 16: On-going Projects (as at March 2024)
41 On-going Projects (as at 31 March 2024) Wide range of product offerings to support growth 1 5 Eastern 1. Aeropod Northern 1. Setia Fontaines 2. Setia Pearl Island 3. Setia Greens 4. Setia Sky Vista 5. Setia Sky Ville 5 18 International 1. Battersea Power Station 2. Shangri-la Melbourne Hotel Cent
Slide 17: Q1 '24 Launches
Q1 ‘24 Launches Launches with GDV totaling RM146.2 mil Central Southern Perumahan Kinrara Berhad Kesas Kenangan Yukong Development Phase: 7A4D Phase: Arell Phase: Palmwood 2 Type: Terrace Housing Type: Bungalow & Semi-D Type: Terrace housing No. of units: 38 No. of units: 54 No. of units: 60 Launch
Slide 18: Reiterating our 2024 Strategic Focus Areas
Reiterating our 2024 Strategic Focus Areas ▪ Accelerate township developments and key investments ▪ Execute industrial expansion ▪ Catalytic, strategic collaboration and landbank management ▪ Strengthen International presence 18
Slide 19: Summary
Summary We continue to pursue growth across our wide-ranging portfolio across domestic and international markets despite the challenging global business environment RM1.42 bil RM731 mil RM181 mil 0.45x Q1’ 24 Sales Land Monetisation Profit Before Tax Net Gearing Ratio 2024 FOCUS AREAS (ONGOING) ▪ Ac
Slide 20: Thank You
Setia SPICE Convention Centre, Penang Thank You Setia Eco Glades, Cyberjaya, Selangor Setia Alaman Industrial Park, Klang, Selangor Sapphire bv the Gardens, Melbourne, Australia 20
Slide 21: Disclaimer
Disclaimer This presentation contains certain statements which are forward-looking in nature, which are subject to uncertainties and contingencies. Forward-looking statements may contain estimates and assumptions made by Setia’s Management after due inquiry, which are nevertheless subject to known a