Sime Darby Property Bhd. · MYX:SIMEPROP
Sime Darby Property Bhd — FY2020 Earnings Presentation
25 slides from Sime Darby Property Bhd's earnings presentation, Feb 26, 2021
Slide 1: 4QFY2020 Quarterly Results Announcement and Briefing
SIME DARBY PROPERTY BERHAD 4QFY2020 Quarterly Results Announcement and Briefing 26 February 2021
Slide 2: Table of Contents
Table of Contents Title Page 1. FY2020 Key Highlights 3 2. Financial Performance for 4QFY2020 and FY2020 4 - 10 3. Operational Performance for FY2020 11 -15 4. Strategy Moving Forward 16 – 20 5. Investment Proposition 21 – 22 6. Appendices 24 – 25 4QFY2020 Quarterly Result Announcement and Briefing
Slide 3: FY2020 Key Highlights
FY2020 Key Highlights FY2020 sales achievement of ~RM2.0bn exceeded sales target by ~43% Financial Performance Snapshot Financial Position as at 31 December 2020 • Revenue: RM2,062.8m Cashflow from Gross Net Cash & Cash Equivalent Due mainly to share of losses Operations Gearing Gearing • Reported L
Slide 4: Financial Performance for 4QFY2020 and FY2020
Financial Performance for: Fourth Quarter & Twelve Months of FY2020 (4QFY2020 & FY2020)
Slide 5: Profit & Loss Performance
Profit & Loss Performance Full year performance was disrupted by the pandemic; Improved QoQ bottom line driven by higher PD revenue and lower share of joint venture losses RM mil 4QFY20 4QFY19 YoY% 3QFY20 QoQ% 4QFY20 vs 4QFY19 (YoY) and 3QFY20 (QoQ) Revenue 705.2 888.9 (20.7) 592.6 19.0 YoY • Lower
Slide 6: Results in 4QFY2020 by excluding one-offs
Results in 4QFY2020 by excluding one-offs PBIT and PATAMI excluding one-offs declined by 67% and 73% YoY PBIT / (LBIT) PATAMI / (LATAMI) 4QFY2020 4QFY2020 Net Financial Net impairment / Financial PATAMI excl. one- write-offs of Gain on disposal of implications from Reported impairment / Gain on impl
Slide 7: Results in FY2020 by excluding one-offs
Results in FY2020 by excluding one-offs YTD PBIT and PATAMI declined by 75% and 84% YoY PBIT / (LBIT) PATAMI / (LATAMI) FY2020 FY2020 Net Impairment of Financial Net impairment / Write-down of Financial impairment / PPE and Write-down of Gain on implications PATAMI excl. one- write-offs of Impairmen
Slide 8: Segmental PBIT/(LBIT) Analysis for FY2020
Segmental PBIT/ (LBIT) Analysis for FY2020 By excl. one-offs, Property Development remained profitable Reported PD IAM PBIT 188.0% (RM367.6m) RM417.8m 285.6% (RM114.4m) (RM29.7m) 115.5% (RM27.8m) RM179.2m 5.0 177.3 470.9 (39.0) 204.6 (53.0) (34.7) (544.9) (27.8) (25.4) (75.4) Excl. one-offs One-offs
Slide 9: Cash and Borrowings as at 31 December 2020
Cash and Borrowings as at 31 December 2020 Healthy cash balances on the back of positive operating cashflow, with moderate gearing level Cash & Cash Equivalents Group Borrowings (RM mil) (RM mil) RM3,409.4m 3.44% RM3,296.0m Short term lease 16.9 Short term Short term Short term: lease borrowings Sho
Slide 10: Property Development Inventories
Property Development Inventories Completed and ongoing inventories is at manageable level Total Inventories GDV of Unsold Units: RM2,248.4m Unsold units: 2,062 units RM6,351.6m 2.8% RM6,532.8m By Category By Type RM mil RM mil RM mil 1.7 Others Statutory 1.5 Incoming Completed Not New Launch RM83.0m
Slide 11: Operational Performance for FY2020
Operational Performance for FY2020
Slide 12: Sales Achieved by Product Type and Location
Sales Achieved by Product Type and Location Sales achieved in FY2020 mainly contributed by residential landed product in Klang Valley Sales Achieved By Product Type RM1,981.0m By Location 67.6 64.6 24.5 122.8 9.7 (3.4%) (3.3%) (1.2%) (6.2%) (0.5%) 181.4 Residential Landed Guthrie Corridor (9.2%) 118
Slide 13: Unbilled Sales as at 31 December 2020
Unbilled Sales as at 31 December 2020 Stable unbilled sales with revenue visibility for the next 2 years By PD Development Type By Location RM1,580.3m RM1,580.3m 1.86% RM1,551.5m 2.9 10.5 Integrated 142.2 53.5 Development RM291.1m 228.1 338.1 (18.4%) 430.9 635.8 Township Development RM1,289.2m (81.6
Slide 14: Launches in FY2020
Launches in FY2020 Commendable average take-up rate of 88%* for new launches Launched 1,668 units worth RM1,506m GDV Historical and Future Launches Year to Date Project Launches FY2019 Elmina East (Ilham Residences) Elmina West The Glades, Putra Heights (Linked Homes) (Elmina Green 3A&3B) (The Resid
Slide 15: FY2021 Launch Plan
FY2021 Launch Plan FY2021 sales target of RM2.4b, underpinned by strategic launch plan and healthy product mix ~83% (by units) is priced ≤RM750k per unit Agile Launch Plan worth ~RM2.5b in FY2021 1 with Healthy Product Mix Residential RMbil 2.5 Landed 43.3% FY2021 Residential High Rise 32.2% 1.5 sal
Slide 16: Strategy Moving Forward
Strategy Moving Forward
Slide 17: Property Market Overview
Property Market Overview MCO 2.0 and emergency order affect property sales and delay in the recovery of the property market Source: Malaysia Property Outlook 2021, Henry Butcher Malaysia Government’s Measures RESIDENTIAL MARKET recovery could likely be delayed to 2022 with 2021 looking flattish • Dr
Slide 18: Enhancing Core Strengths to Create Long-term Value
Enhancing Core Strengths to Create Long-term Value A sustainable business model is key to stay solid S H I F T 2 . 0 T R A N S F O R M AT I O N P L A N 4QFY2020 Quarterly Result Announcement and Briefing 18
Slide 19: Key Priorities in FY2021
Key Priorities in FY2021 Maintaining sight of a balanced & diversified business portfolio over the longer-term Accelerate Diversification of Income Streams Turnaround Complementary Business Segments - 1 Industrial & Logistics Development as New Engine Growth 2 Placemaking & Catalytic Components of T
Slide 20: Key Priorities in FY2021: Effective cost management
Key Priorities in FY2021 Focus for 2021 strategy is to deal with uncertainties and make sure company is resilient Thorough assessment on cost structure to further optimize and drive cost efficiencies Effective cost management Target ~5% cost savings for projects to be launched in the next 2 years is
Slide 21: Investment Proposition
Investment Proposition
Slide 22: Investment Proposition
Investment Proposition Strong fundamentals and track records for growth 01 02 03 RESILIENT FINANCIAL PROMISING GROWTH STABLE SHAREHOLDERS’ POSITION POTENTIAL RETURN Solid balance sheet as at 31 December 2020 : Industry long-term prospects remain positive : Stable returns : • Low net gearing: 0.28x -
Slide 23: Thank You
Property THANK YOU
Slide 24: Appendices
Appendices
Slide 25: Remaining Landbank and GDV as at 31 December 2020
Remaining Landbank and GDV as at 31 December 2020 Sustainable growth with remaining developable period of 25-30 years By Remaining Developable Land By Remaining Gross Development Value (GDV) (acres) (RM bn) 818 310 (6.2%) (2.3%) 5.0 (6.0%) 1,414 5.4 (10.7%) (6.5%) 26.9 (32.3%) 4,739 8.7 13,227 (35.8
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