Sime Darby Property Bhd. · MYX:SIMEPROP
Sime Darby Property Bhd — Q3 2023 Earnings Presentation
35 slides from Sime Darby Property Bhd's earnings presentation, November 2023
Slide 1: Q3 FY2023 Financial Results Analyst Briefing Presentation
Q3 FY2023 FINANCIAL RESULTS ANALYST BRIEFING PRESENTATION simedarbyproperty.com
Slide 2: Table of Contents
Table of Contents Page 1. 9M FY2023 Key Highlights 3–6 2. Financial Performance for Q3 FY2023 & 9M FY2023 7 – 13 3. Operational Performance for Q3 FY2023 & 9M FY2023 14 – 20 4. Battersea Power Station Updates 21 – 22 5. Land Bank Management & Activation Plan 23 – 24 6. Malaysian Economy & Sector Out
Slide 3: 9M FY2023 Financial Highlights
9M FY2023 Financial Highlights • Revenue grew to RM2,424.2m on the back of a robust performance from the Property Development segment • PBT and PATAMI increased by 36.4% and 30.1% YoY respectively • Solid Balance Sheet position with healthy cash reserves and gearing levels Financial Performance Snap
Slide 4: 9M FY2023 Operational Highlights
9M FY2023 Operational Highlights • Sales achievement of RM2.5b; represents ~93% of FY2023 sales target of RM2.7b • RM3.2b worth of diversified products launched in 9M FY2023; amounting to ~80% of FY2023 GDV target of RM4.0b Among the successful launches during Q3 FY2023: Sales Snapshot Sales Achieve
Slide 5: Q3 FY2023 Corporate Awards & Development Highlights
Q3 FY2023 Corporate Awards & Development Highlights • The Group won 7 awards in Q3 FY2023 bringing the total haul to an impressive 40 awards as at 9M FY2023 • Sime Darby Property's Sukuk oversubscribed by over eight times Key Corporate Awards & Recognitions Recent Corporate Development July 2023 Aug
Slide 6: Reaffirms Commitment to Renewable Energy
Reaffirms Commitment to Renewable Energy On 21 September 2023, the Group solidified its commitment to renewable energy with the signing of the Memorandum of Understanding (MoU) with Tenaga Nasional Berhad (TNB) for the exploration and development of sustainable energy initiatives Key Focus Areas of
Slide 7: Financial Performance
Financial Performance Third Quarter (Q3 FY2023) & Nine Months (9M FY2023) ended 30 September 2023 7
Slide 8: Profit & Loss Performance
Profit & Loss Performance • Robust top-line growth of +35.8% YTD, primarily driven by the Property Development segment; while QoQ increased +52.4%, surpassing the RM1 billion mark • YTD Gross profit margin of 30% sustained above the Group’s FY2023 guidance of 20% to 25% 9M FY2022 RM mil Q3 FY2023 Q2
Slide 9: Segmental Revenue and PBT Analysis: Property Development
Segmental Revenue and PBT Analysis for Q3 & 9M FY2023 9M FY2023 revenue and PBT grew +38.7% and +55.0% respectively backed by strong sales in residential and industrial products Property Development (PD) QoQ YoY Revenue Revenue 1,002.5 2,279.0 56.7% 38.7% 1,643.1 639.7 RM mil RM mil PBT PBT 97.2% 22
Slide 10: Segmental Revenue and PBT Analysis: Investment & Asset Management
Segmental Revenue and PBT Analysis for Q3 & 9M FY2023 • IAM maintained its top-line performance at RM78.6m in 9M FY2023 • However, PBT was affected by higher share of loss from joint ventures and associates. Excluding this, PBT stood at RM42.0m Investment & Asset Management (IAM) QoQ YoY Revenue Rev
Slide 11: Segmental Revenue and PBT Analysis: Leisure
Segmental Revenue and PBT Analysis for Q3 & 9M FY2023 • Leisure maintained a marginal revenue growth of 6.1% to RM66.7m in 9M FY2023 • The highly-anticipated Ladies Professional Golf Association (“LPGA”) tournament, hosted by SDP, took place in October 2023 • The prioritization of preparations for t
Slide 12: Cash and Debt as at September 2023
Cash and Debt as at 30 September 2023 • Cash balance remained healthy at RM661.9m and low net gearing of 27.4% • Cash outflow was primarily utilised on land acquisitions which are expected to drive future growth Cash & Cash Equivalents External Borrowings (RM mil) (RM mil) Net operating cash outflow
Slide 13: Property Development Inventories as at September 2023
Property Development Inventories as at 30 September 2023 • Completed inventories in carrying value amounting to RM283.3m (+2.2% vs 31 Dec 2022), due to unsold HOVP units during 9M FY2023 • In terms of GDV, completed and incoming completed stocks only comprised 12% of total inventories of RM3.8b Inve
Slide 14: Operational Performance
Operational Performance Third Quarter (Q3 FY2023) & Nine Months (9M FY2023) ended 30 September 2023 14
Slide 15: Sales Achieved by Product Type and Location
Sales Achieved by Product Type and Location • Residential landed was the top sales contributor in 9M FY023 with a contribution of 38% to 9M FY2023 sales achieved • Industrial contributed 33% or RM836.2m, mainly driven by product offerings from Bandar Bukit Raja, City of Elmina and Nilai Impian’s XME
Slide 16: Sales Performance Breakdown by Product Type & Year
Sales Performance Breakdown (by Product Type & Year) • Strong sales performance in 9M FY2023, achieving ~93% FY2023’s sales target of RM2.7b • Well-diversified product offerings, with a strong growth momentum seen in the industrial segment across the years, with sales contribution increasing from 14
Slide 17: Unbilled Sales as at September 2023
Unbilled Sales as at 30 September 2023 Maintained a strong unbilled sales of RM3.7b or 1.5x cover ratio as of 30 September 2023, providing a strong revenue pipeline and earnings visibility for the Group RM3,748.4m as at 30 September 2023 2.0 1.7 By Property Development Type 1.8 Township Development
Slide 18: Q3 FY2023 Industrial Launches
Q3 FY2023 Industrial Launches Serenia Industrial Park has launched its phase 3 and 3A in Q3 FY2023, amounting to RM309.3m in GDV which consists of 30 units of semi-detached factories and 8 units of detached factories; 9M FY2023 industrial launches amounting to RM675.6m Serenia Industrial Park* Detac
Slide 19: Q3 FY2023 Residential High-Rise Launches
Q3 FY2023 Residential High-Rise Launches RM273.8m worth of residential high-rise products was launched in Q3 FY2023 bringing the GDV launch to RM897.1m in 9M FY2023 which translates to 28% of the total GDV launched of RM3.2b Yellow Submarine Preschool of Art Tropicana Golf & Country Club Asia Pacifi
Slide 20: Q3 FY2023 Residential Landed Launches
Q3 FY2023 Residential Landed Launches • RM468.4m worth of residential landed products was launched in Q3 FY2023 bringing the GDV launch to RM1.5b in 9M FY2023 which translates to 46% of the total GDV launched of RM3.2b • Average take-up rate of 70% as at 5 Nov 2023 Elmina Green 7, Elmina West* 71% 3
Slide 21: Battersea Power Station Updates
Battersea Power Station Updates 21
Slide 22: Battersea Power Station Updates
Battersea Power Station Updates • The completed Residential Phase 2 & 3A are both at 96% take-up respectively, remaining inventories comprising mainly larger units • Latest apartment launch, KOA in Phase 3B achieved ~53% take-up rate • Commercial spaces in Phase 2 & 3A are 88% and 85% leased respect
Slide 23: Land Bank Management & Activation Plan
Land Bank Management & Activation Plan 23
Slide 24: Land Bank Management & Activation Update
Land Bank Management & Activation Update • Activated ~436 acres of land in 9M FY2023; ~99 acres from industrial land activation • Total remaining GDV of ~RM117b with ~15,322 acres remaining land bank Land Activation In acres FY2019 FY2020 FY2021 FY2022 9M FY2023 PD land development & monetisation ~3
Slide 25: Malaysian Economy & Sector Outlook
Malaysian Economy & Sector Outlook 25
Slide 26: Malaysian Economy & Sector Outlook
Malaysian Economy & Sector Outlook Economy continues its recovery - inflationary pressure subsides; growth to be supported by domestic expenditure amid challenging external headwinds Q3 FY2023 Economy Highlights Positive news flows to drive property market sentiment • Malaysia Inflation rate stood a
Slide 27: Strategy Moving Forward
Property i Strategy Moving Forward
Slide 28: Our Transformation Strategy: SHIFT25
Our Transformation Strategy: SHIFT25 Focused on executing our plans within respective engines of growth to transform SD Prop towards becoming a Real Estate Company with greater recurring income PURPOSE To be a Value Multiplier for people, businesses, economies and the planet VISION Advancing real es
Slide 29: FY2023 Guidance
FY2023 Guidance • In Q2FY2023, Sales and GDV launch targets were revised upwards to RM2.7b and RM4.0b (from RM2.3b and RM3.0b) • On track to deliver our targets for FY2023 RM4.0b RM2.7b 20% - 25% ≤ 0.5x ≤ 10% Diversified Launch Sales Target Gross Profit Margin Net D/E Ratio Completed Stocks GDV Pipe
Slide 30: Q4 FY2023 Launch Plan
Q4 FY2023 Launch Plan • Launched ~RM3.2b worth of products in 9M FY2023 achieving 75% average take-up rate for all launches; • Remaining GDV of ~RM791m to be launched in Q4 FY2023 with residential high-rise products accounting for 59% Q4 FY2023 Units to be Launched: 587 | GDV to be Launched: RM791m
Slide 31: Investment Proposition
Property i Investment Proposition
Slide 32: 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 9M FY2023 Sales Committed towards maximizing shareholder
Slide 33: 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 34: Appendix
Property i Appendix
Slide 35: Remaining Land Bank & GDV (as at September 2023)
Remaining Land Bank & GDV (as at September 2023) • ~15,322 acres of land bank located strategically on the west coast of Peninsular Malaysia • GDV of ~RM117b to be unlocked for future earnings visibility Ongoing Developable Lands Future Developable Lands Non-Core Lands ~8,411 acres, RM83.9b ~5,229 a
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