IJM Corporation Berhad · MYX:IJM

IJM Corporation Berhad — Shareholder Meeting (August 2018)

63 slides from IJM Corporation Berhad's shareholder meeting presentation, Aug 28, 2018

  1. Slide 1: 34th Annual General Meeting

    34th Annual General Meeting Review of Group Performance & Prospects Financial Year Ended 31 March 2018 Dato’ Soam Heng Choon, CEO & Managing Director IJM Corporation Berhad 1

  2. Slide 2: Content

    CONTENT Construction 1. FY2018 Group Performance Property 2. Core Business Performance Industry 3. Conclusion 4. Questions & Answers Infrastructure Plantation 2

  3. Slide 3: FY2018 Group Performance

    FY2018 Group Performance 3

  4. Slide 4: Group Income Statement

    GROUP INCOME STATEMENT RM mil %∆ FY2018 FY2017 Revenue 6,026.9 6,065.3 (0.6) EBITDA 1,135.3 1,457.7 (22.1) Operating profit 819.7 1,081.6 Finance cost (185.7) (144.7) Operating profit after finance cost 634.0 936.9 Share of results from JV & associates (4.5) 73.1 Profit before tax 629.5 1,010.0 (37.

  5. Slide 5: FY2018 Core PBT

    FY2018 CORE PBT RM’mil FY2018 Y2017 Reported PBT 629.5 1,010.0 (37.7%) Gain from the sale of land at The Light - (123.1) Waterfront (Phase 2) Gain from the disposal of associate - (27.9) Forex 27.2 (28.8) Share of results of associate 56.0 28.4 Core PBT 712.7 858.6 (17.1%) 5 FY2018 Group Performance

  6. Slide 6: FY2018 Group Balance Sheet

    FY2018 GROUP BALANCE SHEET RM Mil 31-Mar-18 31-Mar-17 Share capital 6,074.3 6,022.7 Shareholders’ funds 9,488.9 9,497.3 Total assets 21,294.8 20,892.7 Net assets per share (RM) 2.62 2.63** Total cash 1,467.7 2,147.8 Total borrowings 5,914.0 6,003.8 Net cash / debt* (4,446.3) (3,856.0) Net debt / sha

  7. Slide 7: FY2018 Group Revenue by Division

    FY2018 GROUP REVENUE BY DIVISION RM mil FY2018 FY2017 3,000 2,674 2,532 2,500 2,000 1,516 1,500 1,324 1,057 1,137 1,002 976 1,000 747 754 500 3 4 0 Construction Property Industry Infrastructure Plantations Others Infrastructure Plantation Plantation Infrastructure 11% 15% 11% 14% Industry 16% FY2018

  8. Slide 8: FY2018 Group PBT by Division

    FY2018 GROUP PBT BY DIVISION RM mil FY2018 FY2017 350 303 300 250 226 217 200 169 142 150 120 117 111 100 83 77 62 50 13 0 Construction Property Industry Infrastructure Plantation Others Plantation Others 12% 2% Others Plantation Infrastructure 19% 17% 12% FY2018 Infrastructure 6% FY2017 21% Constru

  9. Slide 9: Core Business Performance: Construction

    Core Business Performance: Construction 9 The Starling, Damansara Uptown

  10. Slide 10: Construction Snapshot

    CONSTRUCTION SNAPSHOT RM mil %∆ FY2018 FY2017 Revenue 2,674.4 2,532.1 5.6 EBITDA 294.5 282.0 4.4 Profit before tax 226.0 216.7 4.3 PBT % 8.5 8.6 Comments  FY2018 revenue & PBT increased over the corresponding period as construction works at certain major infrastructural projects gathered momentum,

  11. Slide 11: Order Book at Record High

    ORDER BOOK AT RECORD HIGH 100% FY18 Contracts Awarded July 2017 29%  IJM-CHEC JV Kuantan Breakwater 80% Contract Value: RM150m  UOB Tower 2 60% Contract Value: RM451m 30% November 2017 40%  HSBC Office Building Contract Value: RM410m  Uptown 8 Office Tower 20% 41% Contract Value: RM378m  Solapu

  12. Slide 12: MRT 2 (Jinjang to Jalan Ipoh)

    MRT 2 (JINJANG TO JALAN IPOH) Completion of cross beam construction works at Launching of Kampung Batu KTM station Segmented Boxed Girders (SBG) for the proposed along Jalan Jinjang for the Kampung Batu Station of MRT MRT Sungai Buloh – Sungai Buloh - Serdang - Putrajaya Line Serdang - Putrajaya Lin

  13. Slide 13: Puteri Cove Residences, Johor

    PUTERI COVE RESIDENCES, JOHOR Progress Photo – July 2018 13

  14. Slide 14: Equatorial Plaza, Kuala Lumpur

    EQUATORIAL PLAZA, KUALA LUMPUR

  15. Slide 15: West Coast Expressway Section 4

    WEST COAST EXPRESSWAY SECTION 4 WCE Section 4, Jalan Batu Tiga Lama 15 Construction

  16. Slide 16: West Coast Expressway Section 5

    WEST COAST EXPRESSWAY SECTION 5 WCE Section 5 – Mainline CH11600 TO WCE Section 5 – Selangor Regional CH12300 Office 16 Construction

  17. Slide 17: West Coast Expressway Section 8

    WEST COAST EXPRESSWAY SECTION 8 BANDAR RIMBAYU WCE S5 – MAINLINE CH11600 TO CH12300 INTERNATIONAL SCHOOL OASIS WCE Section 8 17 Construction

  18. Slide 18: Vijayapura-Solapur Tollway Alignment

    VIJAYAPURA-SOLAPUR TOLLWAY ALIGNMENT Dhule BOT Section Vijayapura (109km) Hungund Hospet 18 Construction

  19. Slide 19: Core Business Performance: Property

    Core Business Performance: Property De Bunga Residensi, Ampang 19

  20. Slide 20: Property Snapshot

    PROPERTY SNAPSHOT RM mil %∆ FY2018 FY2017 Revenue 1,323.5 1,516.2 (12.7) EBITDA 136.5 321.7 (57.6) Profit before tax 110.6 303.3 (63.5) PBT % 8.4 20.0 Comments  Revenue for FY2018 declined due to the recognition of the sale of a 32-acre land located within the Light Waterfront Penang (Phase 2) in F

  21. Slide 21: Property Sales Achieved

    PROPERTY SALES ACHIEVED Central Region Northern Region Southern Region Eastern Region 1,800 RM1.4bn RM1.4bn RM1.6bn  Saw some improvement in buyer 1,600 2% sentiment although stringent end- 9% financing criteria imposed by 1,400 2% 3% 9% 3% banks are still in place 14% 1,200 15%  Township and land

  22. Slide 22: Growing the Recurrent Income Base

    GROWING THE RECURRENT INCOME BASE Building Investment Property Asset Key Facts  Total Investment RM500m  27-storey office tower  Land Area: 51,196 sqft (1.175 acres) o Gross Floor Area: 560, 000 sqft  Development Period: 2016 – 2018 Incentive to Build & Lease in TRX  Anchor Tenants (84% secured

  23. Slide 23: Menara Prudential

    MENARA PRUDENTIAL Artist Impression Progress Photo – July 2018 23 Property

  24. Slide 24: Upcoming Property Launches

    UPCOMING PROPERTY LAUNCHES Safira Apartment @ Swan (Phase 11)@ Seremban 2 Bandar Rimbayu Suria Pantai Affordable Homes@ Pantai Sentral Park Total - 896 units Total - 242 units Total - 195 units Build-up – 810 sqft Build-up – 858 sqft Build-up – 22 x 70 Price – RM275k Price – RM280k onwards Price – R

  25. Slide 25: Core Business Performance: Industry

    Core Business Performance: Industry ICP Piles with Special Shoes for New Deep Water Terminal, Kuantan Port 25

  26. Slide 26: Industry Snapshot

    INDUSTRY SNAPSHOT RM mil %∆ FY2018 FY2017 Revenue 1,057.1 1,136.6 (7.0) EBITDA 137.0 194.1 (29.4) Profit before tax 82.5 142.4 (42.1) PBT % 7.8 12.5 Comments  FY2018 revenue & PBT decreased over the previous year’s corresponding periods as margins were compressed by increased raw material prices as

  27. Slide 27: Capacity & Locations

    CAPACITY & LOCATIONS Capacity 10 Pile Factories 2.0m tonnes p.a Kuala Terengganu Junjung Jawi 9 Quarries Ipoh 8.0m tonnes p.a Lumut Kuantan Kuang Kapar Labu Jiangmen, Klang China Nilai Kulai India:  Medchal Mandal Ulu Ulu Choh  Magadi Taluk Choh Senai 27 Industry

  28. Slide 28: Various Projects in Industry Business

    VARIOUS PROJECTS IN INDUSTRY BUSINESS Holcim Jetty, Tuban, East Jawa, Indonesia Temburong Bridge, Brunei McConnell Dowell Port, Holcim Jetty Scandisk Storage, Penang NDWT, Kuantan Port, Pahang Ready Mixed Concrete Plant, Waterfront Development & Armour Rocks Quarry, Gebeng, Kuantan, Pahang Ancillary

  29. Slide 29: Core Business Performance: Infrastructure

    Core Business Performance: Infrastructure 29 Kuantan Port, Pahang

  30. Slide 30: Infrastructure Snapshot

    INFRASTRUCTURE SNAPSHOT RM mil %∆ FY2018 FY2017 Revenue 1,001.9 975.5 2.7 EBITDA 350.5 284.8 23.1 Malaysian Tollways 222.4 238.8 Port 119.9 102.0 Overseas Infra 64.2 (27.7) Others (56.0) (28.3) Profit before tax 120.1 62.3 92.8 Malaysian Tollways 96.0 121.4 Port 85.2 66.4 Overseas Infra (5.1) (97.2)

  31. Slide 31: Concession Assets Portfolio

    CONCESSION ASSETS PORTFOLIO 31 Infrastructure

  32. Slide 32: Kuantan Port 6-Year Throughput

    KUANTAN PORT 6-YEAR THROUGHPUT 40 39 35 30 25 23 20 20 17 17 15 15 10 5 - FWT in mil FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 Existing Port Capacity – 26 million FWT 32 Infrastructure

  33. Slide 33: New Deep Water Terminal Layout

    NEW DEEP WATER TERMINAL LAYOUT 33 Infrastructure

  34. Slide 34: NDWT Phase 1

    NDWT PHASE 1 34 Infrastructure

  35. Slide 35: Malaysia-China Kuantan Industrial Park 2&3

    MALAYSIA-CHINA KUANTAN INDUSTRIAL PARK 1 2&3 Malaysia Consortium China Consortium IJM Land Guangxi Beibu 51% 49% 60% 40% IJM Land 40% Guangxi Beibu 95% Sime Darby 30% Qinzhou Investment 5% Pahang State 30% 1,000 acres 1,200 acres 800 acres Total = 3,000 acres 35 Infrastructure

  36. Slide 36: MCKIP 1 – 1st Investment Project

    MCKIP 1 – 1ST INVESTMENT PROJECT Alliance Steel (M) Sdn Bhd, a modern iron and steel plant is currently under construction 710 acres Modern Integrated High Carbon Steel and H-shape Steel Mill Steel Total Production Output 3.5 RM5.6 billion Investment million tonnes annually 36 Infrastructure

  37. Slide 37: Alliance Steel: Plant Commence Operations

    ALLIANCE STEEL: PLANT COMMENCE OPERATIONS Anticipated to commence commercial production & sales by 3Q2018 37 Infrastructure

  38. Slide 38: Alliance Steel Aerial View

    ALLIANCE STEEL AERIAL VIEW Progress Photo - July 2018 38 Infrastructure

  39. Slide 39: Investors in MCKIP & Kuantan Port

    INVESTORS IN MCKIP & KUANTAN PORT No. Industries 1. Steel & metal 2. Production of passenger car radial (“PCR”) & truck and bus radial (“TBR”) tyres 3. Clay porcelain, tableware & ceramic manufacturing 4. Aluminium components processing 5. Potash fertilizer manufacturing 6. Battery manufacturing (le

  40. Slide 40: Core Business Performance: Plantation

    Core Business Performance: Plantation Sijas Estate, Sabah 40

  41. Slide 41: Plantation Snapshot

    PLANTATION SNAPSHOT RM mil %∆ FY2018 FY2017 Revenue 747.2 753.7 (0.9) EBITDA 203.8 258.4 (21.1) Profit before tax 77.3 168.5 (54.1) PBT % 10.3 22.4 *CPO Price 2,639 2,753 *Average CPO Price Per Tonne for Malaysian operations Comments  Revenue for FY2018 declined due to lower CPO sales volume and co

  42. Slide 42: Operations Profile

    OPERATIONS PROFILE Sabah Kalimantan Sumatera 60,979 ha 932,950 mt 229,609 mt Total Planted Area FFB Production (FY18) Crude Palm Oil (FY18) 42 Plantation

  43. Slide 43: Planted Area & Weighted Average Age Profile

    PLANTED AREA & WEIGHTED AVERAGE AGE PROFILE Malaysian Indonesian % GROUP Operations Operations Average Palm Age 14.1 6.8 9.9 Mature (> 20 years) 1,772 - 1,772 3 Mature-Prime 17,776 5,505 23,281 38 ( 8 - 20 years ) Mature-Young 3,046 25,213 28,259 46 ( 4-7 years ) Immature ( 1-3 years ) 2,556 5,113 7

  44. Slide 44: Conclusion

    Conclusion 44 Prestige Shantinikaten Banglore, India

  45. Slide 45: Business Drivers

    BUSINESS DRIVERS Construction Division – RM9.4bn outstanding order book at record high. New Malaysian landscape favourable to our competitive business model Property Division – Seeing improvement in buyer sentiment. Expected completion of Menara Prudential in Dec 2018 Industry Division – Expecting t

  46. Slide 46: Conclusion

    CONCLUSION  Execution of high outstanding construction order book and property unbilled sales to underpin medium term performance  The Group is investing into new growth areas such as the NDWT at Kuantan Port, Menara Prudential at TRX and Vijayapura-Solapur BOT in India  Selective participation i

  47. Slide 47: Questions and Answers

    QUESTIONS AND ANSWERS MSWG a7

  48. Slide 48: Strategy and Financial Matters

    STRATEGY AND FINANCIAL MATTERS 1. Construction (pages 70 – 73 of the Annual Report 2018) a. Construction Division’s outstanding order book surpassed RM9.41 billion, which is all-time high in FY2018. With the change of new Government, would there be any impact on the secured order book of the Group?

  49. Slide 49: Strategy and Financial Matters

    STRATEGY AND FINANCIAL MATTERS Continue from 1a. Currently, the Construction Division, together with the Project Delivery Partner of the LRT3 project and other consultants, are conducting an assessment on the underground package of the LRT3 that was awarded to IJM Construction on 13 March 2018 for R

  50. Slide 50: Strategy and Financial Matters

    STRATEGY AND FINANCIAL MATTERS 1. Construction (pages 70 – 73 of the Annual Report 2018) b. As reported on page 73 of the Annual Report 2018, the Division will prioritise the tendering of projects in overseas markets such as India and Vietnam. What is the Group’s current overall tender book value fo

  51. Slide 51: Strategy and Financial Matters

    STRATEGY AND FINANCIAL MATTERS Continue from 1b. At present, the Construction Division remains focused on executing its high level of outstanding order book while it will soon commence the construction of its largest contract to-date in India – the Vijayapura – Solapur BOT tollway at the project cos

  52. Slide 52: Strategy and Financial Matters

    STRATEGY AND FINANCIAL MATTERS 2. Property (pages 76 – 79 of the Annual Report 2018) a. How would the Board strategise the Division’s business amid the challenging environment in our Country? In the past few years, the Property Division has been tailoring its product offerings to cater to the afford

  53. Slide 53: Strategy and Financial Matters

    STRATEGY AND FINANCIAL MATTERS Continue from 2a. The challenging property market has also presented certain opportunities, which the Division has capitalised on. During the year, the Division undertook the development of Menara Prudential, a Grade A office building at TRX for recurrent income stream

  54. Slide 54: Strategy and Financial Matters

    STRATEGY AND FINANCIAL MATTERS 2. Property (pages 76 – 79 of the Annual Report 2018) b. What is the total gross development value for existing property developments? c. How many acres of development land does the Group currently have? How long would it take for the Division to sustain the developmen

  55. Slide 55: Strategy and Financial Matters

    STRATEGY AND FINANCIAL MATTERS 2. Property (pages 76 – 79 of the Annual Report 2018) d. Please update on the progress and take up rates for all current development projects. The Group’s numerous property projects are at various stages of development and are on schedule. Being mindful of the challeng

  56. Slide 56: Strategy and Financial Matters

    STRATEGY AND FINANCIAL MATTERS 2. Property (pages 76 – 79 of the Annual Report 2018) e. How would the Board address the issue of unsold inventories? The Board has been closely monitoring the level of unsold inventories, of which a substantial proportion is under Bumi quota for which we are actively

  57. Slide 57: Strategy and Financial Matters

    STRATEGY AND FINANCIAL MATTERS 3. Port (pages 98 – 99 of the Annual Report 2018) a. Kuantan Port has kicked off a rebranding project in February 2018 to introduce the New Deep Water Terminal (“NDWT”) and increase its customer engagement. i. How successful is the branding exercise? The rebranding exe

  58. Slide 58: Strategy and Financial Matters

    STRATEGY AND FINANCIAL MATTERS 3. Port (pages 98 – 99 of the Annual Report 2018) a. Kuantan Port has kicked off a rebranding project in February 2018 to introduce the New Deep Water Terminal (“NDWT”) and increase its customer engagement. ii. What is the expected future contribution from the NDWT to

  59. Slide 59: Strategy and Financial Matters

    STRATEGY AND FINANCIAL MATTERS 3. Port (pages 98 – 99 of the Annual Report 2018) b. Kuantan Port expects to receive the approval to operate as a Free Zone Port by the third quarter of 2018. What is the status of the approval and when is the approval expected to be obtained? The preliminary approval

  60. Slide 60: Strategy and Financial Matters

    STRATEGY AND FINANCIAL MATTERS 4. Industry (pages 82 – 85 of the Annual Report 2018) a. On the overseas front, the Company is looking forward to continue the momentum gained in FY2018 through marketing efforts made in Singapore, Myanmar, Indonesia, Brunei and Bangladesh. What are the prospects for t

  61. Slide 61: Strategy and Financial Matters

    STRATEGY AND FINANCIAL MATTERS 4. Industry (pages 82 – 85 of the Annual Report 2018) b. How much did the Group spend on the Division’s Research and Development initiatives? What sorts of breakthroughs are expected to be achieved in the next few years that could potentially help to improve the Group’

  62. Slide 62: Strategy and Financial Matters

    STRATEGY AND FINANCIAL MATTERS 5. The Group’s share of losses of Scomi Group amounted to RM56.01 million (FY2017: loss of RM28.38 million) was attributable to operational and unrealised foreign exchange losses, losses on disposal of assets and asset impairments. Could the Board share the plan on the

  63. Slide 63: Thank you

    Thank you 63

IJM Corporation Berhad — Shareholder Meeting (August 2018) on 6ix