Eco World Development Group Bhd. · MYX:ECOWLD
Eco World Development Group Bhd — Q2 FY2021 Earnings Presentation
26 slides from Eco World Development Group Bhd's earnings presentation, June 2021
Slide 1: Q2 FY2021 Results & Briefing
Q2 FY2021 R E S U LT S & B R I E F I N G JUNE 2021 Reset & Reinvent
Slide 2: Financial Highlights
FINANCIAL HIGHLIGHTS
Slide 3: Strong Sales Momentum Sustained
ECOWORLD MALAYSIA Reset & Reinvent STRONG SALES MOMENTUM SUSTAINED Sales Breakdown +10% vs FY2020 full year sales 2,302 2,530 88% of FY2021 sales target of RM2.875 billion 2H 2020 1,969 achieved in 7 months 1H 2020 333 2020 7 months 2021
Slide 4: Sales Performance by Region
ECOWORLD MALAYSIA Reset & Reinvent SALES PERFORMANCE BY REGION 99% of 118% of 196% of 2020 sales 2020 sales 2020 sales 1,600 1,400 700 250 1,200 600 500 200 1,000 400 800 1,555 1,541 718 150 271 Notes: 600 300 608 100 # 12 months sales as at 31 Oct 2020 400 200 50 139 ^ 7 months sales as at 200 100
Slide 5: Future Revenue as at May 2021
ECOWORLD MALAYSIA Reset & Reinvent FUTURE REVENUE AS AT 31 MAY 2021 Sustained recovery in sales momentum EcoWorld Malaysia RM3.77B + RM4.21 billion High level of future revenue from locked-in sales which gives: 27% of 1) Clear earnings visibility EcoWorld International 2) Strong cash-flow certainty
Slide 6: Revenue: 2Q FY2021 Financials
REVENUE Reset & Reinvent 2Q FY2021 FINANCIALS Revenue 22% increase 420,455 due to: 345,403 • Improving sales momentum over last 4 consecutive quarters • Good progress of works on site in 2Q 2021 vs 2Q 2020 2Q 2020 2Q 2021
Slide 7: Share of Results of Joint Ventures
SHARE OF RESULTS OF JOINT VENTURES Reset & Reinvent 2Q FY2021 FINANCIALS Share of Results of JV 228% increase 48,120 due to: 9,518 • High sales by Malaysian JVs over last 4 consecutive quarters • Good progress of works on site in 2Q 2021 vs 2Q 2020 14,689 38,602 • Contribution from EcoWorld 4,505 In
Slide 8: Selling and Administrative Expenses
SELLING AND ADMINISTRATIVE EXPENSES Reset & Reinvent 2Q FY2021 FINANCIALS Operating Expenses 13.7% 10.7% Well contained of of Revenue Revenue 45,003 47,379 Continued financial discipline + 38,256 focus on digitalisation 38,795 will drive further cost efficiencies going forward 6,208 9,123 2Q 2020 2Q
Slide 9: 2015–2021 Cost Reset via Digital Transformation
2015 – 2021 COST RESET Reset & Reinvent VIA DIGITAL TRANSFORMATION & FINANCIAL DISCIPLINE Selling & Administrative Expenses 250,000 9.54% 12.00% • Digitalisation journey began in 2017 9.81% 200,000 10.00% • More than 60% savings in Marketing & Selling Expenses since 2018 with 8.00% no loss in sales
Slide 10: Profit After Tax
PROFIT AFTER TAX Reset & Reinvent 2Q FY2021 FINANCIALS Profit After Tax 42,321 172% increase due to: • Strong contributions from Malaysian & International joint venture projects 15,546 • Financial discipline & cost savings implemented 2Q 2020 2Q 2021
Slide 11: Q2 FY2021 Updates
Q2 FY2021 UPDATES
Slide 12: New Launches
NEW LAUNCHES Reset & Reinvent PRODUCTS AT PRICE-POINTS TO SUIT EVERY BUDGET Double Storey Landed Ergo Home & Duduk Apartments Product Home & Co-Home Garden Home Garden Home Eco Horizon & Eco Ardence & Project Eco Botanic 2 Eco Forest Eco Grandeur Eco Sanctuary Launched Date March 2021 April 2021 Mar
Slide 13: Breakdown on Product Types
ECOWORLD MALAYSIA Reset & Reinvent BREAKDOWN ON PRODUCT TYPES Cumulative units sold Cumulative unit sold as at Oct 2015 as at May 2021 12% 10% 16% 21% 12% 16% Landed - Upgrader (RM>1m) 24% Landed - Mass Housing (>RM650k – RM1m) 18% Landed - M40 (<RM650k) 14% Highrise - M40 (<RM500k) 37% 20% Integrat
Slide 14: #YouBelong: Breakdown of Customer Profile
Reset & Reinvent Breakdown of customer profile As at Oct 2015 As at May 2021 #YouBelong 3% 3% 16% 3% 26% ideal properties for everyone 41% 53% Strategic shift in customer demographic over last 5 years 55% / Close to 70% of customers are now below 40 yrs old Gen X + Boomers (40 yrs & Above) Gen Z (be
Slide 15: Bumi Buyers
Oct 2015 6% 5% 8% BUMI BUYERS increased by > 300% 81% #SENANGjer, Kempen Hartanah Bumi and other similar campaigns greatly increased EcoWorld’s share of the key Bumiputra homebuyers market May 2021 / 4% 5% Wide range of products for every market segment including affordable housing / Bumiputra custo
Slide 16: Time to Buy
Reset & Reinvent Time to Buy conducive conditions to invest in property low mortgage rates / HOC initiatives – extended to 31 December 2021 / impending economic recovery with ramp up in vaccination / various stimulus measures by the government, namely the Prihatin Rakyat Economic Stimulus Package (P
Slide 17: Commercial, Industrial & BBCC
COMMERCIAL, INDUSTRIAL & BBCC
Slide 18: Eco Business Parks: Solid Demand
Eco Business Park Segment Landbank 1,762 acres Reset & Reinvent Total GDV RM9.45billion Cumulative Sales RM2.35 billion Remaining GDV RM7.10 billion SOLID DEMAND Eco Business Parks RM227 million sold in 7 months YTD 2021 vs RM220 million for FY2020 / Continued strong demand from local industrialists
Slide 19: BBCC
Reset & Reinvent BBCC SWNK HOUZE OFFICE TOWER integrated development SERVICED RESIDENCES a visionary, state-of-the-art inner-city regeneration project & masterpiece in the making / strategically situated on sizeable 19.4 - acre HOTEL parcel at the heart of Kuala Lumpur’s Golden Triangle / Handing ov
Slide 20: Progress on ESG Initiatives
PROGRESS ON ESG INITIATIVES
Slide 21: ESG: Doing Better by Doing Good
Reset & Reinvent ESG doing better by doing good Decision to embed sustainability into our business strategy and day-to-day operations yielding results & recognition / EcoWorld Malaysia included into the FTSE4Good Bursa Malaysia (F4GBM ) Index in December 2020 / Conferred the EdgeProp Malaysia’s Resp
Slide 22: Culture: Embedding an ESG Mindset
CULTURE embedding an ESG mindset advocating the importance of sustainability in life and work / enhance employee motivation by instilling a sense of purpose and increase productivity overall / Virtual WED 2021 celebration to continue to advocate sustainability group-wide by: - celebrating achievemen
Slide 23: Investment Case
INVESTMENT CASE
Slide 24: Improving Balance Sheet
IMPROVING BALANCE SHEET Reset & Reinvent TRACK RECORD SINCE 2016 1.59 1.61 1.50 Focused & steadfast efforts 1.38 to strengthen Balance Sheet evidenced by: 0.99 • Constant Growth in Net 0.76 0.77 Asset per Share despite 0.67 0.61 0.55 Covid-19 pandemic 0.39 0.24 • Steady reduction in Net Gearing leve
Slide 25: Commitment to Dividend Payment
COMMITMENT TO DIVIDEND PAYMENT Reset & Reinvent 2Q FY2021 FINANCIALS Stronger Balance Sheet & improved gearing position enabled dividend payments to 2 sen interim dividend declared commence in 4Q 2020 Dividend Per Share (sen) Dividend Payout (RM’mil) in 2Q 2021 to reward 2020 2021 2020 2021 sharehol
Slide 26: Thank You
THANK YOU ECOWorLD
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