S P Setia Bhd. · MYX:SPSETIA
S P Setia Bhd — Q2 2024 Earnings Presentation
22 slides from S P Setia Bhd's earnings presentation, Aug 14, 2024
Slide 1: Financial Results & Group Update
Financial Results & Group Update For financial period ended 30 June 2024 14 August 2024 Alaman Setia Eco Templer, Rawang, Selangor Setia BandarAlaman, Setia Shah Setia Alam, Alam,Alam, Selangor Selangor Setia Eco Glades, Cyberjaya, Selangor 1
Slide 2: YTD Q2 '24 At a Glance
YTD Q2 ‘24 At a Glance Increase in profits year-on-year and reduction of RM700 million in debt in YTD Q2 ‘24 RM 2.30 bil RM 2.97 bil RM 404 mil 0.41x Sales Revenue Profit After Tax Net Gearing Ratio FY2024 sales targets Reaping the benefits Increase in profits year- (Dec ‘23: 0.49x) remain on track
Slide 3: FY 2024 Target – On track
FY 2024 Target – On track YTD Q2 ‘24 sales underpinned by Central Region (robust industrial segment performance) and Southern Region (favourable demand conditions) 5,261 acres RM4.16 bil Effective remaining Unbilled Sales landbank at 30 June 2024 RM106.69 bil GDV of effective remaining landbank RM4.
Slide 4: Key Financial Highlights
Key Financial Highlights Solid fundamentals and strategic portfolio management setting the foundation for resilient and sustainable growth Sales Revenue PBT RM 2.30 bil RM 2.97 bil RM 648 mil (YTD Q2 ’23: RM2.56 bil) (YTD Q2 ‘23: RM1.91 bil) (YTD Q2 ’23 : RM236 mil) Borrowings Net Gearing PAT RM 9.4
Slide 5: Financial Performance
< Setia Financial Performance
Slide 6: YTD Q2 '24 PAT Performance
YTD Q2 ‘24 PAT Performance Profits lifted by successful land sales and transaction gain, offset by higher UK losses PAT (RM ’mil) PAT breakdown by geography +234% +230% YoY QoQ Southern RM95 mil 404 Land sales (23%) RM371 mil 310 (92%) Central PAT RM27 mil (7%) 121 YTD Q2 ’24 Northern & Eastern -RM1
Slide 7: YTD Q2 '24 Profitability Analysis
YTD Q2 ‘24 Profitability Analysis Earnings resilience on the back of solid execution of portfolio strategies Gross Profit (RM’mil) PATANCI (RM’mil) Property +277% Development 29% 28% YoY Gross Margin: +72% 41 YoY ( 0 (2 995 3 3 11% lower (13 578 finance cost YoY In Q2 ‘24 YTD Q2 2 3 4 5 YTD Q2 YTD Q
Slide 8: YTD Q2 '24 Sales Performance
YTD Q2 ‘24 Sales Performance YoY lower sales mitigated by land monetisastion and industrial segment contribution of Setia Alaman Industrial Park Sales (RM’mil) Sales breakdown by geography -10% Malaysia: YoY Eastern 2,557 RM10 mil International 2,303 Johor land sales (YTD Q2 ‘24): Malaysia: (0.4%) 5
Slide 9: YTD Q2 '24 Revenue Performance
YTD Q2 ‘24 Revenue Performance +56%YoY increase driven by land sales and property development contributions in the Southern Region, Central Region and Vietnam Revenue (RM’mil) +56% Revenue breakdown by geography +1.3% YoY 2,971 QoQ International RM343 mil 989 (12%) 1,911 124 1,495 1,476 424 564 Reve
Slide 10: YTD Q2 '24 Net Gearing
YTD Q2 ‘24 Net Gearing Debt reduction of RM 00 million in YTD Q2 ’24 as net gearing is lowered to 0.41x – effective debt management capital allocation 0.61 11% lower finance costs 0.57 (RM10 mil YoY In Q2 ‘24 0.6 14.0 0.49 12.0 0.5 0.45 Net gearing (ratio) 0.41 10.0 0.4 RM'bil 8.0 0.3 6.0 0.2 4.0 0.
Slide 11: Operational Updates
< Setia Operational Updates
Slide 12: Unbilled Sales as at June 2024
Unbilled Sales as at 30 June 2024 Providing core development revenue coverage ratio of 1.02x Vietnam 31 March 2024: Australia RM60 mil RM5.38 bil RM351 mil (1%) (9%) • Malaysia accounts for 90% of the Group’s unbilled sales as at Unbilled Sales 30 June ‘24 Unbilled Sales • Revenue coverage ratio of
Slide 13: Remaining land banks
Remaining land banks We have 5,261 acres of effective remaining land banks with a total GDV of RM106.69 billion as at 30 June 2024 GDV: Eastern, International, RM2.8 bil, 3% 44 acres, 1% 35 acres, 1% GDV: RM19.0 bil, 18% Southern, 1,064 acres, 20% GDV: RM11.1 bil, 10% 5,261 acres RM 106.69 bil GDV C
Slide 14: Landbank Management – Ongoing transactions
Landbank Management – Ongoing transactions Monetising non-core land with catalytic potential Subject Land SETIA CITY, TAMAN PELANGI, SHAH ALAM JOHOR Sales proceeds RM229 mil RM167 mil Estimated PAT RM141 mil RM57 mil Acreage 18 6.5 Purchaser KSL Bestari Sdn Bhd Maxim Pelangi Sdn Bhd Sales recognitio
Slide 15: Completed Inventories as at June '24
Completed Inventories as at 30 June ‘24 Achieved RM244 million reduction of stocks compared to Q4 ‘23 level, representing ~15% clearance progressively RM’mil As at 30 June 2024 Total Inventory – Completed Stock 2,000 Region RM’ mil Units Integrated 1,766 805 281 1,800 * 1,721 Development 1,656 Centr
Slide 16: Q2 '24 Launches
Q2 ‘24 Launches Launched a total GDV of RM1.0 billion in YTD Q2 ’24 Central Southern Residential Commercial Residential Phase: 7A7B - Anggun Villa 2 Phase: A20 – Shop Office Phase: Aurinia Type: Semi Detached Type: Double Storey Shop Type: Semi Detached No. of units: 28 No. of units: 38 No. of units
Slide 17: SETIA Brand Narrative Refreshed
SETIA Brand Narrative Refreshed In conjunction with S P Setia’s 50th anniversary, we refreshed our brand narrative to reflect our dedication to shaping and inspiring communities/individuals to thrive in every aspect of life - live, learn, work, and play Shaping Spaces That Shape Us All Setia 50A Cel
Slide 18: Shaping Spaces That Shape Us All
Shaping Spaces That Shape Us All 18
Slide 19: 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 19
Slide 20: Summary
Summary We remain dedicated to expanding our diverse portfolio in both domestic and international markets despite the challenging global business environment RM 2.30 bil RM 2.97 bil RM 404 mil 0.41x Sales Revenue Profit After Tax Net Gearing Ratio 2024 FOCUS AREAS (ONGOING) ▪ Accelerate township dev
Slide 21: Thank You
Setia SPICE Convention Centre, Penang Thank You Setia Fontaines, Pulau Pinang Setia Alaman Industrial Park, Klang, Selangor 21 Sapphire bv the Gardens, Melbourne, Australia 21
Slide 22: 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