Singapore Exchange Ltd. · SGX:S68
Singapore Exchange — Hatten Land — 3Q 2017 Earnings Presentation
40 slides from Singapore Exchange's earnings presentation, May 15, 2017
Slide 1: Hatten Land Limited - 3Q 2017 Results
HATTEN LAND LIMITED Shaping the Future 3Q 2017 Results Corporate Presentation | 15 May 2017 1
Slide 2: Contents
Contents 1. Overview of Hatten Land 2. Hatten Land Assets Portfolio 3. Business Updates 4. Financial Performance 5. Competitive Strengths 6. Business Strategies & Future Plans 7. Growth Prospects 2
Slide 3: Disclaimer
Disclaimer Information in this presentation may contain forward-looking statements that reflect the current views of Hatten Land Limited (the “Company” and together with its subsidiaries, the “Group”) with respect to future events and financial performance. These views are based on the current assum
Slide 4: 1. Overview of Hatten Land
Pe HATTEN |; Md (mt fm] ——1Lann—— Rf. > 1. Overview of Hatten Land
Slide 5: Corporate Profile
Corporate Profile • The Company is one of the leading property developers in Malaysia specialising in integrated residential, hospitality and commercial developments and is headquartered in Melaka. • It is the property development arm of Hatten Group, which is a leading brand in Malaysia with core b
Slide 6: One of the Leading Developers in Malaysia
One of the Leading Developers in Malaysia § Hatten Land has over 10 years of track record in developing award-winning integrated residential, hotel and commercial developments in Melaka. WINNER OF OVER 50 PRESTIGIOUS PROPERTY AWARDS (Since 2011) 6
Slide 7: Group Structure
wy Group Structure HATTEN INTERNATIONAL PTE. LTD. Marketing & Development Consultancy Services FUYUU RESOURCES SDN. BHD. Hatten City Phase 1 * SilverScape Residence + Elements Mall + Hatten Suites LAND—— HATTEN® SKY WIN MANAGEMENT CONSULTANCY PTE. LTD. FUYUU VENTURES SDN. BHD. Hatten City Phase 2 ¢
Slide 8: Our Track Record
Our Track Record Flagship Project. Completion of Hatten City Phase 2 Completion of Completion of Largest mall in Melaka Hatten Square and Hatten Hotel Sales Launch Terminal Pahlawan Hatten City Phase 1 (DPMM) Harbour City Harbour City Completion of the Hatten City Phase 1 Vedro by the River Completi
Slide 9: Management Structure
Management Structure Board of Directors Dato' Colin Tan Executive Chairman & Managing Director/ Head of Marketing & Sales Dato' Edwin Tan Executive Director & Deputy Managing Director/ Head of Operations John Lee Executive Director & Head of Corporate & Finance Chong Foh Siong Mark Tan Johnson Chua
Slide 10: 2. Hatten Land Assets Portfolio
2. Hatten Land Assets Portfolio 10
Slide 11: Hatten City Phase 1
Hatten City Phase 1 The mixed development, Hatten City Phase I, integrates four (4) distinct projects namely Elements Mall, SilverScape Residences, Hatten Suites and a tower block which will be managed by Hilton Worldwide as part of its DoubleTree by Hilton brand. § Location : Jalan Syed Abdul Aziz,
Slide 12: Hatten City Phase 2
Hatten City Phase 2 Hatten City Phase 2 is a mixed development which comprises Imperio Mall and Imperio Residence. It utilises an iconic “cascading steps” design which functions as an outdoor jogging route with views of the coast and surrounding city. Imperio Residence will also feature 10 Cabana Vi
Slide 13: Harbour City
Harbour City Harbour City is a mixed development which will consist of Harbour City Mall, a water theme park and three (3) hotel blocks. Incorporating elements of retail, hotels and the theme park, Harbour City aims to change Malacca’s tourism and entertainment landscape. § Location : Pulau Melaka f
Slide 14: Vedro by the River
Vedro by the River Vedro by the River is a retail mall which aims to features an eclectic mix of tenants ranging from fashion brands to retailers of novelty gadgets and chic accessories. § Location : Kee Ann Road, along Melaka River § Land Size : Approximately two (2) acres § Market Value : RM65.0 m
Slide 15: 3. Business Update
> 3. Business Update Per HATTEN ® (mt fm] ——1Lann—— Rf. 15
Slide 16: Good Sales Records
Good Sales Records § Good sales track record for the 4 property developments under Hatten Land Limited Total GFA Net Saleable NSA Percentage Units (sq ft) Area (sq ft) Sold (%) (1) Completion (%) Hatten City Phase 1 Elements Mall 1,530 1,530,238 686,682 34 100 SilverScape 745 820,188 591,638 85 100
Slide 17: Land Bank & Development Rights in High Growth Cities
20 Land Bank & Development Rights in High Growth Cities 17
Slide 18: Land Bank & Development Rights in High Growth Cities
20 Land Bank & Development Rights in High Growth Cities § Hatten Land has access to 20 land bank and development rights in high growth cities held by the Hatten Group for future development. § Through the right of first refusal and call options granted to the Company, Hatten Land is able to periodic
Slide 19: Upcoming Projects
Upcoming Projects § Hatten Land has entered into a non-binding memorandum of understanding in relation to the proposed acquisition of the following assets: Project Plot Ratio Land Area Status Of The Project Thea Wellness Project 5.8 2.05 acres Acquired on 24 March 2017 MICC Project 4.0 9.34 acres Ac
Slide 20: Thea Wellness Project
Thea Wellness Project • This will be the Company’s first venture into wellness. • The Thea Wellness Project comprises a hotel block and serviced apartment block • A 2.05 acre plot of land located at Taman Melaka Raya. The land is held under No. PN 14975, No. Lot 850, Kawasan Bandar XXXIX, Daerah Mela
Slide 21: MICC Project
MICC Project • The MICC Project is slated to be developed into an integrated mixed development that will comprise a shopping mall, cineplex, convenUon hall, an auditorium, meeUng rooms, a hotel block and a serviced apartment block • A 9.34 acre plot of land held under No. PN 54338, No. Lot 11006 Kaw
Slide 22: Cyberjaya Project
Cyberjaya Project • This will be the Company’s first venture into medical tourism • The Cyberjaya Project slated to be developed across three (3) phases into an integrated mixed development that will comprise retail, commercial (offices), residenUal, and hospitality units and a hospital. • A 25.55 acre
Slide 23: 4. Financial Performance
Pe HATTEN |; & (mt fm] ——1Lann—— J. > 4. Financial Performance 23
Slide 24: Key Financials
Key Financials RM ‘million 3Q 2017 3Q 2016 Change 9M 2017 9M 2016 Change Revenue 164.9 74.1 122.5% 332.4 307.5 8.1% Gross Profit 49.1 27.8 76.7% 107.3 115.4 -7.0% Operating Profit 25.9 12.6 105.6% 56.1 69.5 -19.3% Non-Operating Expenses (87.8) - n/m (87.8) - n/m Profit / (loss) before tax (61.8) 12.
Slide 25: Financial Highlights – 3Q 2017
Financial Highlights – 3Q 2017 (Jan 2017 - Mar 2017) • The Group’s revenue increased by 122.5% to RM164.9 million in 3Q 2017, from approximately RM74.1 million in 3Q 2016. • OperaUng profit increased by 105.6% to RM25.9 million in 3Q 2017, from approximately RM12.6 million in 3Q 2016. • Non-operaUng
Slide 26: Financial Highlights – 9M 2017
Financial Highlights – 9M 2017 (Jul 2016 - Mar 2017) • The Group’s revenue increased by 8.1% to RM332.4 million in 9M 2017, from approximately RM307.5 million in 9M 2016. • OperaUng profit decreased by 19.3% to RM56.1 million in 9M 2017, from approximately RM69.5 million in 9M 2016. • Non-operaUng ex
Slide 27: Financial Highlights - Revenue Analysis by Projects
Financial Highlights - Revenue Analysis by Projects FY 2016 9M 2017 RM ‘million (%) Percentage of RM ‘million (%) Percentage of Completion (%) Completion (%) Hatten City Phase 1 240.2 (58.3%) 100.0% 36.9 (11%) 100.0% Hatten City Phase 2 116.1 (28.1%) 58.1% 231.4 (69.6%) 87.0% Vedro by the River 42.0
Slide 28: Gross Profit / Gross Profit Margin by Projects
Financial Highlights - Gross Profit / Gross Profit Margin by Projects Gross Profit (RM ‘million) FY 2016 9M 2017 Hatten City Phase 1 116.5 20.5 • Gross profit for Hatten City Phase 1 reached RM116.5 Hatten City Phase 2 25.6 64.3 million in FY 2016 upon the completion of the project. Vedro by the Riv
Slide 29: Financial Highlights – Analysis by Projects
Financial Highlights – Analysis by Projects 29
Slide 30: Financial Highlights - Financial Position
Financial Highlights - Financial Position RM ‘million 31 Mar 2017 30 Jun 2016 Change Cash & Cash Equivalents 98.4 81.9 20% Current Assets 1,156.0 817.9 41% Non-Current Assets 150.4 115.4 30% Current Liabilities 652.8 500.8 30% Non-Current Liabilities 481.7 371.9 30% Net Assets 171.9 60.6 184% Net Ge
Slide 31: 5. Competitive Strengths
Pe HATTEN |; Md (= im) ——Lanp—— fi. > 5. Competitive Strengths 31
Slide 32: Competitive Strengths
Competitive Strengths § Established track record and reputation § Hatten Land has an established track record for the development of well-designed properties in Melaka and ability to develop projects which meet customers’ needs. § Hatten Land has won numerous accreditations and awards. § Established
Slide 33: Competitive Strengths
Competitive Strengths § Ability to develop innovative properties that meet the changing needs and desires of customers § The Company is one of the first few developers who is able to tailor our property developments to meet the changing needs and desires of our customers in Melaka, Malaysia, by spec
Slide 34: Competitive Strengths
Competitive Strengths § Hatten Group expertise and established business relationships Property Development Hatten Land § The Company can tap into the strengths of the Hatten Group and its comprehensive and vertically integrated business. § This allow us to incorporate various elements of Property In
Slide 35: 6. Business Strategies & Future Plans
6. Business Strategies & Future Plans 35
Slide 36: Business Strategies & Future Plans
Business Strategies & Future Plans § Expansion into the region § Leverage on our established business base in Melaka to explore opportunities to expand into overseas markets such as in various South East Asian markets. § Beneficial for the long-term growth of Hatten Land Limited to collaborate with
Slide 37: Business Strategies & Future Plans
Business Strategies & Future Plans § Explore opportunities to expand through mergers and acquisitions, joint ventures and/or strategic alliances § Expand our business through mergers and acquisitions, joint ventures and/or strategic alliances with parties that create synergistic values with our curr
Slide 38: 7. Growth Prospects
> 7. Growth Prospects Pe HATTEN * & (mt fm] ——1Lann—— J. 38
Slide 39: Growth Prospects
Growth Prospects § Consistent economic growth § Malaysian economy grew by 5% in 2015 and from 2011 to 2015 (with the exception of 2013), the Malaysian GDP consistently recorded at least 5% growth rate. § The Melaka GDP growth for 2015 was reported to be 5.5%. § Growing interest in the Melaka residen
Slide 40: Thank You
Pe HATTEN |; Md (mtn) ——Lanp—— fi. » Thank You 40