Sime Darby Property Bhd. · MYX:SIMEPROP
Sime Darby Property Bhd — Q1 2023 Earnings Presentation
33 slides from Sime Darby Property Bhd's earnings presentation, May 25, 2023
Slide 1: Q1 FY2023 Financial Results Analyst Briefing Presentation
Q1 FY2023 FINANCIAL RESULTS ANALYST BRIEFING PRESENTATION simedarbyproperty.com
Slide 2: Table of Contents
Table of Contents Page 1. Q1 FY2023 Key Highlights 3–5 2. Financial Performance for Q1 FY2023 6 – 11 3. Operational Performance for Q1 FY2023 12 – 19 4. Battersea Power Station Updates 20 – 21 5. Land Bank Management & Activation Plan 22 – 24 6. Malaysian Economy & Sector Outlook 25 – 26 7. Investme
Slide 3: Q1 FY2023 Financial Highlights
Q1 FY2023 Financial Highlights • Revenue 43% higher YoY at RM685.3 million in Q1 FY2023 • PBT and PATAMI up 18% YoY and 17% YoY respectively Financial Performance Snapshot Revenue 43% Profit Before Tax 18% PATAMI 17% RM685.3 million RM97.9 million RM60.7 million (Q1 FY2022: RM480.3m) (Q1 FY2022: RM8
Slide 4: Q1 FY2023 Operational Highlights
Q1 FY2023 Operational Highlights • Sales achievement of RM688.5m; Industrial accounting for 55% or RM376.0 million of total sales achieved for the quarter • RM1.0b worth of diversified products launched in Q1; residential landed (58%), high-rise (29%) and industrial (13%) Sales Snapshot Sales Achiev
Slide 5: Q1 FY2023 Corporate Awards & Development Highlights
Q1 FY2023 Corporate Awards & Development Highlights Strengthening our brand trust with awards and recognition, as well as milestones achieved on our Industrial Development Fund & Urban Biodiversity commitment Key Corporate Awards & Recognitions Key Corporate Developments Ranked First in All-Stars Aw
Slide 6: Financial Performance
Financial Performance First Quarter ended 31 March 2023 (Q1 FY2023) City of Elmina, Shah Alam 6
Slide 7: Profit & Loss Performance
Profit & Loss Performance • Q1 FY2023 revenue and PBT grew by +42.7% to RM685.3m and +17.8% to RM97.9m YoY • Gross profit margin stood above the Group’s expectations at 29.6% with all 3 business segments registering profit at PBT level Q1 FY2022 Q4 FY2022 RM mil Q1 FY2023 YoY % QoQ % (restated) (res
Slide 8: Segmental Revenue and PBT Analysis for Q1 FY2023 (Property Development)
Segmental Revenue and PBT Analysis for Q1 FY2023 • PD segment remained as the major revenue contributor, accounting for 93% of the Group’s total revenue for the quarter • Driven by increased sales of industrial products and improved site progress on the back of improved foreign labour market Propert
Slide 9: Segmental Revenue and PBT Analysis for Q1 FY2023 (IAM & Leisure)
Segmental Revenue and PBT Analysis for Q1 FY2023 • Both IAM & Leisure segments recorded higher revenue growth of +4% and +16% YoY respectively • Lower PBT for IAM impacted by share of overseas JV losses & Leisure posted improved PBT on a normalised basis as Q1 FY2022 was enhanced by gain on asset di
Slide 10: Cash and Debt as at 31 March 2023
Cash and Debt as at 31 March 2023 • Well-capitalised for growth and future expansion plans • Strong cash balances of RM945.0m, positive net operating cash flow & low net gearing of 20.4% - mitigates the impact of high interest rate environment and provides financial headroom for expansion Cash & Cas
Slide 11: Property Development Inventories as at March 2023
Property Development Inventories as at 31 March 2023 • Completed inventories (in carrying value) remained low at RM 274.1m as at 31 March • In terms of GDV, completed and incoming completed inventories only comprised of 19% of total inventories of RM3.0b Inventories in Carrying Value Stocks in GDV &
Slide 12: Operational Performance
Operational Performance First Quarter ended 31 March 2023 (Q1 FY2023) City of Elmina, Shah Alam 12
Slide 13: Sales Achieved by Product Type and Location
Sales Achieved by Product Type and Location • Industrial’s contribution surpassed residential landed as the top sales contributor (55% of Q1 FY2023 sales achieved) • Driven by product offerings from Elmina Business Park, Bandar Bukit Raja & XME Business Park Q1 FY2023 Sales Achieved RM688.5m By Prod
Slide 14: Sales Performance Breakdown (by Product Type)
Sales Performance Breakdown (by Product Type) • Increasing sales contribution of industrial products from 14% to 55% from FY2020 – Q1 FY2023 • Capitalising on industrial as a new avenue for growth, while maintaining strong residential sales Sales Performance Breakdown by Product Type (%) Bookings as
Slide 15: Unbilled Sales as at 31 March 2023
Unbilled Sales as at 31 March 2023 • Maintained a strong unbilled sales of RM3.6 billion or 1.4x cover ratio as of 31 March 2023, thus providing a strong revenue pipeline and earnings visibility for the Group RM3,605.4m as at Q1 FY2023 4,000.0 2.0 1.4 1.7 1.8 By Property Development Type 3,500.0 1.6
Slide 16: Q1 FY2023 Residential Landed Launches
Q1 FY2023 Residential Landed Launches Residential landed products launched RM583.2m in GDV and contributed 58% of the total GDV launched of RM1b Emilia 1 & 2, Nilai Impian 2 100% Serenia Anisa 1, Serenia City 87% 101 units | RM52.5m | Feb 2023 take-up 110 units | RM77.6m | Mar 2023 take-up Nadira 3,
Slide 17: Q1 FY2023 Residential High-Rise Launches
Q1 FY2023 Residential High-Rise Launches Our latest Transit Oriented Development (“TOD”), Serasi Residences is strategically located within Putra Heights Sentral, with excellent accessibility, connectivity and amenities as well as lifestyle convenience; First 507 units of Tower 1 recorded 99% take-u
Slide 18: Q1 FY2023 Industrial & Logistics Development Updates
Q1 FY2023 Industrial & Logistics Development Updates SDPLOG JV marked a significant milestone with first tenant for Metrohub 2; Industrial launches amounting to RM129.3m (or 13% of total GDV launched) comprises ready-built factories and industrial lots Industrial Development Fund Industrial Product
Slide 19: Q2 FY2023 Launch Plan
Q2 FY2023 Launch Plan • Total of ~RM1.3b with 1,557 units to be launched in Q2; • ~56% from residential landed, ~24% residential high-rise, 17% from industrial in terms of GDV Q2 FY2023 Units to be Launched: 1,557 | GDV to be Launched: RM1,289.8m FY2023 Planned Launches Q2 Planned Launches Product G
Slide 20: Battersea Power Station Updates
Battersea Power Station Updates
Slide 21: Battersea Power Station Updates
Battersea Power Station Updates • Continued its momentum post official opening of the ~1 million sq ft commercial space in Oct 2022 • The completed Residential Phase 2 & 3A is now at 92% and 94% take-up respectively Phase 1 Completed Phase 5 - 7 In planning Phase 2 Completed Phase 3C In planning Pha
Slide 22: Land Bank Management and Activation Plan
Land Bank Management and Activation Plan
Slide 23: Land Bank Management & Activation Update
Land Bank Management & Activation Update • Pace of land activation continue to accelerate in-tandem with our growth aspirations to unlock greater value • Target GDV activation of industrial townships/land of ~RM1.2b to RM1.7b per year between FY2023-FY2025 Land Activation In acres FY2019 FY2020 FY20
Slide 24: Shareholders Approve Land Acquisition of Kapar Land
Shareholders Approve Land Acquisition of Kapar Land Strategic location of land poised to stimulate industrial development and enhance the Group’s industrial development projects in Bandar Bukit Raja Current Development: Bandar Bukit Raja 4 (Kapar Land) Bandar Bukit Raja 1 (BBR 1) Acreage (Total | Re
Slide 25: Malaysian Economy & Sector Outlook
Malaysian Economy & Sector Outlook
Slide 26: Malaysian Economy & Sector Outlook
Malaysian Economy & Sector Outlook • Q1 2023’s GDP grew by 5.6%; full year GDP to moderate to 4% - 5% in 2023 driven by domestic growth; • Property sector to remain steady in 2023 with growth expected to moderate in-line with the economy; Industrial property market is set to expand further Overnight
Slide 27: Investment Proposition
Investment Proposition 27
Slide 28: Our Transformation Journey: SHIFT25
Our Transformation Journey: SHIFT25 Strategy remains intact; focus on execution of our plans towards becoming a Real Estate Company ENGINES OF GROWTH STRATEGY ENGINE 1 Core Business ❖ Business as usual – current source of revenues, profit, cash ❖ Maximising Core’s potential via growth in township an
Slide 29: Investment Proposition
Investment Proposition • Clarity of purpose, strengthened fundamentals and track record for growth • Towards greater income diversification and value multiplication Improved Financial Solid Balance Sheet Revenue Visibility Stable Return Position Q1 FY2023 Sales Committed towards maximising sharehold
Slide 30: End of Presentation | Q&A
End of Presentation | Q&A City of Elmina, Shah Alam 30
Slide 31: Thank you
Thank you Sime Darby Property Berhad 197301002148 (15631-P) No. 2, Jalan PJU1A/7A Ara Damansara 47301, Petaling Jaya Selangor, Malaysia simedarbyproperty.com
Slide 32: Appendix
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Slide 33: Remaining Land Bank & GDV (as at March 2023)
Remaining Land Bank & GDV (as at March 2023) • ~15,190 acres of land bank located strategically on the west coast of Peninsular Malaysia; • GDV of ~RM111b to be unlocked for future earnings visibility Ongoing Developable Lands Future Developable Lands Non-Core Lands ~8,860 acres, RM86.6b ~4,280 acre
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