Sime Darby Property Bhd. · MYX:SIMEPROP
Sime Darby Property Bhd — Q4 FY2023 Earnings Presentation
38 slides from Sime Darby Property Bhd's earnings presentation, February 2024
Slide 1: Q4 FY2023 Financial Results Analyst Briefing Presentation
Q4 FY2023 FINANCIAL RESULTS ANALYST BRIEFING PRESENTATION simedarbyproperty.com
Slide 2: Table of Contents
Table of Contents Page 1. FY2023 Key Highlights 3 2. Financial Performance for Q4 FY2023 & FY2023 10 3. Operational Performance for Q4 FY2023 & FY2023 17 4. Battersea Power Station Updates 23 5. Land Bank Management & Activation Plan 25 6. FY2023 Year in Review 27 7. Malaysian Economy & Sector Outlo
Slide 3: FY2023 Financial Highlights
FY2023 Financial Highlights • SD Property delivers exceptional performance in FY23; • Recorded highest revenue, gross profit, and operating profit since the 2017 demerger; • Revenue and PBT grew 25% and 33% respectively to RM3.4b and RM610.3m, respectively; • Declared second dividend of 1.5 sen, bri
Slide 4: FY2023 Operational Highlights
FY2023 Operational Highlights • Outperformed sales target by 22%, reaching RM3.3b in sales and sustaining record high unbilled sales of RM3.6b; • RM4.0b GDV worth of diversified products launched in FY2023 (38% residential landed; 34% Residential High rise; 17% Industrial) Sales Snapshot Key launche
Slide 5: Q4 FY2023 Corporate Awards & Development Highlights
Q4 FY2023 Corporate Awards & Development Highlights • The Group won 11 awards in Q4 FY2023; secured an impressive 51 awards in total for FY2023; • Sime Darby Property wins Outstanding CEO of the Year and Top Three Property Developer; • Esteemed SD Prop Director, Datuk Soam, acknowledged for exceptio
Slide 6: Seed Homes – New Venture into Affordable Homes Segment
“Seed Homes” – Sime Darby Property’s New Venture into Affordable Homes Segment Sime Darby Property and Lagenda Properties establish 50:50 Joint Venture (“JV”) to develop affordable homeownership; first project in Gurun, Kedah expected to yield over 3,000 affordable homes New footprint Existing Key S
Slide 7: Industrial Development Fund (IDF-1) – Final Close at RM1.0b
Industrial Development Fund (IDF-1) – Final Close at RM1.0b Secured capital commitment for the remaining balance of ~RM300m; Second financial close targeted to be completed by Mar/Apr 2024 Sept 2021 June & July 2022 May 2023 Mar/Apr 2024 Established First close Second Close Joint Venture Secured 70%
Slide 8: SDPLOG E-Metro Logistics Park: Metrohub 1
SDPLOG E-Metro Logistics Park: Metrohub 1 • Construction Progress (Dec 2023) for Metrohub 1 – expected completion by Q4 FY2024 • ~ 1.2mil of sq.ft in Gross Lettable Area (GLA) ~1.2mil sq.ft Gross Lettable Area Expected Completion: Q4 FY2024 8 Expected Completion: Q4 FY2024
Slide 9: SDPLOG E-Metro Logistics Park: Metrohub 2
SDPLOG E-Metro Logistics Park: Metrohub 2 • Construction Progress for Metrohub 2 – expected completion by Q1 FY2024 • ~ 800,000 sq.ft in Gross Lettable Area (GLA) SDPLOG E-Metro Logistics Park Bandar Bukit Raja 2 January 2024 Double Storey 2 Blocks of Double Storey Ready Built Warehouse Expected Com
Slide 10: Financial Performance
Financial Performance Fourth Quarter (Q4 FY2023) & Twelve Months (12M FY2023) ended 31 December 2023 10
Slide 11: Profit & Loss Performance
Profit & Loss Performance • FY2023 marked the highest revenue since the 2017 de-merger at RM3.4b with +25% growth YoY; • Highest gross profit since the de-merger of RM1.0b with +22% growth YoY; • Highest operating profit since the de-merger of RM606.4m with +39% growth YoY; • PATAMI grew significant
Slide 12: Segmental Revenue and PBT Analysis: Property Development
Segmental Revenue and PBT Analysis for FY2023 Registered robust revenue and PBT growth of +26.9% and +44.1% respectively in FY2023; driven by strong sales across residential landed, high-rise, and industrial products, coupled with stronger progress at site Property Development (PD) QoQ YoY Revenue R
Slide 13: Segmental Revenue and PBT Analysis: Investment & Asset Management
Segmental Revenue and PBT Analysis for FY2023 • IAM top-line performance remain on par YoY at RM107.8m; • PBT declined by 54% to RM15.8; impacted by higher share of loss from joint ventures arising from fair value losses. Investment & Asset Management (IAM) QoQ YoY Revenue Revenue 12.0% 107.9 107.8
Slide 14: Segmental Revenue and PBT Analysis: Leisure
Segmental Revenue and PBT Analysis for FY2023 Leisure segment revenue grew by 10.7% to RM93.8m in FY2023 driven by higher membership activities & banqueting; Celebrated success of a milestone event – the LPGA-Maybank Championship, hosted at Kuala Lumpur Golf & Country Club in October 2023. Leisure Q
Slide 15: Cash and Debt as at December 2023
Cash and Debt as at 31 December 2023 • Well-capitalised for growth; cash balance remained healthy at RM602.6m, supported by a net gearing of 22.7% • Cash outflow was primarily utilised on land acquisitions which are expected to drive future growth Cash & Cash Equivalents External Borrowings (RM mil)
Slide 16: Property Development Inventories as at December 2023
Property Development Inventories as at 31 December 2023 • Completed inventories in carrying value amounting to RM243.4m (+12% vs 31 Dec 2022) • Completed stocks comprised 10.5% of total inventories of RM3.7b GDV Inventories in Carrying Value Stocks in GDV & Units 31 December 2023 31 December 2022 RM
Slide 17: Operational Performance
Operational Performance Fourth Quarter (Q4 FY2023) & Twelve Months (12M FY2023) ended 31 December 2023 17
Slide 18: Sales Achieved by Product Type and Location
Sales Achieved by Product Type and Location • Residential landed and Industrial as the top 2 contributors in FY2023 - at 36% and 31% of Sales Achieved, respectively; • Sales contribution in FY2023 remains predominantly within the Greater Klang Valley region FY2023 Sales Achieved RM3,336.9m By Produc
Slide 19: Sales Performance Breakdown (by Product Type & Year)
Sales Performance Breakdown (by Product Type & Year) • Strong sales performance in FY2023, exceeding FY2023 revised sales target of RM2.7b by 22% • Diversified product offering with growing contribution from high-rise residential and industrial product type Sales Performance Breakdown by Product Typ
Slide 20: Unbilled Sales as at December 2023
Unbilled Sales as at 31 December 2023 Maintained strong unbilled sales of RM3.6b or 1.4x cover ratio as of 31 December 2023, providing healthy earnings visibility across the next three years RM3,597.2m as at 31 December 2023 4,000.0 2.0 1.7 3,500.0 1.8 By Property Development Type 1.6 Township Devel
Slide 21: Q4 FY2023 Residential Landed & High-Rise launches
Q4 FY2023 Residential Landed & High-Rise launches • RM556.6m worth of residential landed & high-rise products was launched in Q4 FY2023; • Total GDV launch for residential landed and high-rise amounted to RM2.9b GDV in FY2023; • Significant increase in residential high-rise launches worth RM1.4b in
Slide 22: Q4 FY2023 Industrial & Commercial launches
Q4 FY2023 Industrial & Commercial launches • RM136.2m worth of Industrial & Commercial products was launched in Q4 FY2023; • Total GDV launch for Industrial and Commercial amounted to RM862.2m GDV in FY2023; • Average take-up rate remain above 90% Q4 FY2023 Launches FY2023 Review Industrial Q4FY2023
Slide 23: Battersea Power Station Updates
Battersea Power Station Updates 23
Slide 24: Battersea Power Station Updates
Battersea Power Station Updates • The Residential Phase 2 & 3A are both at 97% take-up respectively, remaining inventories comprising mainly larger units • KOA (Phase 3B – residential): 111 units amounting to a GDV of £101.6m have been sold as at 31 Jan 2024; achieving ~54% take-up rate • Commercial
Slide 25: Land Bank Management & Activation Plan
Land Bank Management & Activation Plan 25
Slide 26: Land Bank Management & Activation Update
Land Bank Management & Activation Update • Activated ~940 acres of land in FY2023; approx. ~100 acres from industrial land activation • Total remaining developable GDV of ~RM115b across ~13,600 acres of remaining land Land Activation In acres FY2019 FY2020 FY2021 FY2022 FY2023 PD land development &
Slide 27: FY2023 Year in Review
Property i FY2023 Year in Review
Slide 28: FY2023 Year in Review
FY2023 Year in Review • In H1FY2023, Sales and GDV launch targets were revised upwards to RM2.7b and RM4.0b (from RM2.3b and RM3.0b) • FY2023 performance exceeded all targets – testament to our execution capability and financial/operational competencies FY2023 FY2023Guidance Guidance RM4.0b RM2.7b 2
Slide 29: Malaysian Economy & Sector Outlook
Malaysian Economy & Sector Outlook 29
Slide 30: Malaysian Economy & Sector Outlook
Malaysian Economy & Sector Outlook • Malaysia’s GDP growth moderated to 3.7% in FY2023 amid challenging external environment; • Improved overall sentiment on the Property sector on the back of strong performance in FY2023 Domestic economy forecast to grow in FY2024; Positive swing in overall propert
Slide 31: Strategy Moving Forward
Property i Strategy Moving Forward
Slide 32: FY2024 Guidance
FY2024 Guidance The Group remains focused on execution and delivery of its SHIFT25 transformation journey, aiming for greater heights in FY2024, building upon a commendable performance in FY2023 Our Our Purpose Purpose To be a Value Multiplier for people, businesses, SHIFT25 Strategy remains intact
Slide 33: FY2024 Launch Pipeline
FY2024 Launch Pipeline • ~RM3.9 GDV of planned launches with ~30% balanced product mix across Residential Landed, High-rise, and Industrials; • RM954.1m worth of product to be launched in Q1 FY2024 Q1 FY2024 Planned Launches in FY2024 Units to be Launched: 532 | GDV to be Launched: RM954.1m 3,267 un
Slide 34: Investment Proposition
Property i Investment Proposition
Slide 35: Investment Proposition
Investment Proposition • Clarity of purpose, strengthened fundamentals and track record for growth • Towards greater income diversification and value multiplication Strong Financial Solid Balance Sheet Revenue Visibility Stable Return Position FY2023 Sales Committed towards maximizing shareholders’
Slide 36: Thank you | Q&A
Thank you | Q&A Sime Darby Property Berhad 197301002148 (15631-P) No. 2, Jalan PJU1A/7A Ara Damansara 47301, Petaling Jaya Selangor, Malaysia simedarbyproperty.com
Slide 37: Appendix
Property i Appendix
Slide 38: Remaining Land Bank & GDV (as at December 2023)
Remaining Land Bank & GDV (as at December 2023) • ~14,800 acres of land bank located strategically on the west coast of Peninsular Malaysia • GDV of ~RM115b to be unlocked for future earnings visibility Ongoing Developable Lands Future Developable Lands Non-Core Lands ~8,400 acres, RM82.0b ~5,200 ac
Sime Darby Property Berhad — Q4 FY2023 Earnings Presentation on 6ix