S P Setia Bhd. · MYX:SPSETIA
S P Setia Bhd — 9M 2023 Earnings Presentation
24 slides from S P Setia Bhd's earnings presentation, Nov 23, 2023
Slide 1: Financial Results & Group Update
Financial Results & Group Update For nine months ended 30 September 2023 23 November 2023 Setia AlamImpian, Shah Alam Setia Alaman Industrial Park, Klang Sapphire by the Gardens, Melbourne Setia City, Shah Alam
Slide 2: Macroeconomic Outlook
Macroeconomic Outlook Fundamentals to stabilise in Setia’s key markets – Malaysia, Vietnam and Australia MALAYSIA VIETNAM AUSTRALIA ▪ Expected GDP growth: 4% in ▪ Expected GDP growth: 5% in ▪ Expected GDP growth: 2.0% in 2023, 4-5% in 2024 (BNM) 2023; 5.5% (2024) and 6.0% 2023; 1.75% (2024) (2025) ▪
Slide 3: Malaysia Property Sector Outlook
Malaysia Property Sector Outlook Residential and Industrial sectors supported by infrastructure developments and government policy RESIDENTIAL • Housing demand to increase due to stable interest rates and firmer job market (MHPI 2Q ‘23: 212.3 points; roughly unchanged YoY) • Residential demand suppo
Slide 4: Highlights: Nine months ended September 2023 (9M 2023)
Highlights: Nine months ended 30 September 2023 (9M 2023) Resilient performance amid challenging economic conditions RM3.89 billion sales in 9M 2023 Earnings visibility surpassed last year’s level ▪ Unbilled sales: RM6.76 bil at Sep 2023 ▪ Achieved sales of RM3.89 bil in 9M ▪ 44 ongoing projects and
Slide 5: Landbank Management Updates – Land Acquisition (Sydney)
Landbank Management Updates – Land Acquisition (Sydney) Continuation of Australia expansion over the next 2-3 years 20 Atchison Street, St Leonards, Sydney (1,374 sq m / 14,790 sq ft) Acquisition date 3 Sep 2023 Land tenure Freehold Consideration AUD 73.3 mil (RM 220 mil) Proposed Estimated GDV: AUD
Slide 6: Landbank Management Updates – Land Monetisation (Setia City)
Landbank Management Updates – Land Monetisation (Setia City) Expediting Setia City as a fully integrated commercial hub Setia City (17.99 acres) 17.99 acres SPA signing 23 Nov 2023 Purchaser KSL Bestari Sdn Bhd Land tenure/use Freehold / Commercial Sale proceeds RM228.8 million Est. gain on disposal
Slide 7: Key Financial Highlights
Key Financial Highlights Revenue growth and de-gearing intact despite macroeconomic headwinds Sales Revenue PBT 9M’23 : RM3.89B 9M’23 : RM2.99B 9M’23: RM371.8M (9M’22: RM2.70B) (9M’22: RM2.7B) (9M’22:RM370.0M) PATANCI Borrowings * Net Gearing Ratio 9M’23: RM150.3M 9M’23: RM11.0B 9M’23: 0.53x (9M’22:
Slide 8: 9M 2023 Sales Performance
9M 2023 Sales Performance YoY sales growth driven by land monetisation, Southern region and Australia YoY Group Sales Performance Central contributed 47% (RM’M) 3,893 to total Sales 3,384 (RM’M) 3,070 International , 2,699 523 , 13% Integrated 2,260 Development, 55 , 1% Eastern , 35 , 1% 9M 2023 Cen
Slide 9: Landbank Management
Landbank Management Commitment to monetising non-core land to strengthen capital framework and pursue future growth opportunities RM’M Landbank Monetisation by Quarter Landbank Monetisation - 9M ‘23 600 Proceeds Land Acreage (RM'mil) 500 Central - Bandar Setia Alam 4.6 60 Southern - Tanjung Kupang 1
Slide 10: 9M 2023 – Revenue Performance
9M 2023 – Revenue Performance 25% increase in Q3 2023 revenue to RM1.08 billion, mainly due to Australia (handover of UNO Melbourne Stage 2) Malaysia contributed 79% to total Group Revenue Performance YoY Revenue (RM’M) (RM’M) Vietnam, 6, 0.2% Malaysia , 2,349 Australia, , 79% 3,132 635 , 2,730 2,98
Slide 11: 9M 2023 – Profitability performance
9M 2023 – Profitability performance Southern Region was the largest contributor to 9M ‘23 PBT Malaysia contributed 75% to total PBT Southern contributed 56% to Malaysia PBT (RM’M) (RM’M) Northern, (5), (2%) Eastern, 3, 1% International Malaysia, Central, 92; 25% 280; 75% 106, 38% 9M 2023 Malaysia So
Slide 12: PBT and PATANCI – 5-year performance
PBT and PATANCI – 5-year performance Lower PATANCI in 9M ‘23 due to impact of higher opex, forex losses, JV losses, finance costs and tax expenses Group performance on PBT and PATANCI (RM’M) 482 354 370 372 274 218 161 150 -280 -377 9M 9M 9M 9M 9M 2019 2020 2021 2022 2023 PBT PATANCI 12
Slide 13: Launches Take-up Rates
Launches Take-up Rates Encouraging take-up rates for landed residential and commercial properties Northern region Central region Central region Setia Fontaines Bandar Kinrara Setia Bayuemas CITY CENTRE BUSINESS HUB Ph 7A4C (IRAMA VILLA III) Ph RP2 (LAELIA II) (COMMERCIAL) Type: 2 Storey Terraced Hou
Slide 14: Unbilled Sales, Land Banks and GDV
Unbilled Sales, Land Banks and GDV Unbilled Sales of RM6.76 billion is supported by 5,549 acres of effective remaining land banks with a total effective remaining GDV of RM113.11 billion as at 30 September 2023 REMAINING LAND BANKS Unbilled Sales International, 6.76 Eastern, 43.67 , 1% 34.74 , 0% GD
Slide 15: On-going Projects (as at September 2023)
44 On-going Projects (as at 30 September 2023) Wide range of product offerings to support growth 1 5 Eastern 1. Aeropod Northern 1. Setia Fontaines 2. Setia Pearl Island 3. Setia Greens 4. Setia Sky Vista 5. Setia Sky Ville 6 20 International Central 1. Battersea Power Station 1. Setia Alam 2. Sapph
Slide 16: ESG
ESG Setia 16
Slide 17: Vision, Mission and Sustainability Governance
Vision: To be the leader in creating Sustainable communities and enriching lifestyles Organisational Mission: P.L.A.C.E.S Purpose and Product | Leader in Transforming Real Estate | A+ People | Communities at Heart | E-nnovation & Technology | Vision Shareholders’ Value Sustainability Governance Seti
Slide 18: eGreen Living Key Features
eGreen Living 9 Key Features General Information 2,000 1,890 Product pricing point: Product Range (default) • RM 750k and Above RM1.5m & Above 535 RM750k – RM1.5m 1,500 Products below RM 750k • 6 developments Below RM750k No. of units Solar Capacity • Single Phase: 2.25kWp • Three Phase: 4kWp 1,000
Slide 19: Solar installation – Commercial assets
Solar installation – Commercial assets 4,340 kWp completed (Setia Corporate HQ; Setia City Mall) Setia Corporate HQ, Setia Alam, Selangor Setia SPICE, Penang Setia City Convention Centre, Setia Alam, Setia City Mall, Setia Alam, Selangor Selangor Office building Convention centre Shopping mall (Plan
Slide 20: p — a
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Slide 21: RECAP: 9M 2023 Highlights
RECAP: 9M 2023 Highlights Resilient performance amid challenging economic conditions RM3.89 billion sales in 9M 2023 Earnings visibility surpassed last year’s level ▪ Unbilled sales: RM6.76 bil at Sep 2023 ▪ Achieved sales of RM3.89 bil in 9M ▪ 44 ongoing projects and effective 2023 (87% local; 13%
Slide 22: Reaffirming our 2023 Business Strategies
Reaffirming our 2023 Business Strategies Strengthening our financials and unlocking future value Way Forward Reduce Set Sales target Pare Down Borrowings Strategic Launches Completed Stocks RM4.2 B Reduce net gearing ratio Focus on landed properties Right pricing and financing Capital allocation wit
Slide 23: Thank You
Setia Thank You
Slide 24: 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