Sime Darby Property Bhd. · MYX:SIMEPROP
Sime Darby Property Bhd — Q4 2021 Earnings Presentation
35 slides from Sime Darby Property Bhd's earnings presentation, Feb 25, 2022
Slide 1: Q4 FY2021 Financial Results Virtual Briefing Session
O4 FY202 jem — FINANCIAL RESULTS VIRTUAL BRIEFING SESSION London UC simedarbyproperty.com
Slide 2: Table of Contents
Table of Contents Page 1. FY2021 Key Highlights (Financial & Operational) 3–6 2. Financial Performance for Q4 FY2021 and FY2021 7 – 12 3. Operational Performance for FY2021 and YTD FY2022 13 – 19 4 Updates on Land Bank 20 – 21 5. Strategy Moving Forward 22 – 26 6. Investment Proposition 27 – 28 7. A
Slide 3: FY2021 Key Highlights (Financial)
FY2021 Key Highlights (Financial) Revenue of ~RM2.2b and PBT of RM268.3m, translating into PATAMI of RM136.9m in FY2021 Financial Performance Snapshot Segment Revenue Revenue Reported PBT Reported PATAMI Leisure 55.5 RM2,219.9m RM268.3m RM136.9m (2.5%) (Q4 FY2021: RM739.4m) (Q4 FY2021: RM120.8m) (Q4
Slide 4: FY2021 Key Highlights (Operational) (1/3)
FY2021 Key Highlights (Operational) (1/3) Highest ever launches of ~RM3.7b GDV worth of products in FY2021; 39 phases with diversified mix of residential landed, high-rise and industrial products Operational Highlights RM3,720.0m GDV Average take-up rates: 100% take-up for 4 landed 2 high-rise proje
Slide 5: FY2021 Key Highlights (Operational) (2/3)
FY2021 Key Highlights (Operational) (2/3) Sales achievement of RM3.0b; exceeds sales target by 22% and on par with pre-pandemic levels (2019: RM3.1b) Achieved RM1,024.0m sales in Q4 FY21 & RM3.0b sales in FY2021 buoyed by (1) effective online sales efforts Sales Highlights (in-house built systems);
Slide 6: FY2021 Key Highlights (Operational) (3/3)
FY2021 Key Highlights (Operational) (3/3) Multiple awards and recognitions as well as milestones achieved; enhanced credentials as a testament to our sustainability commitment Key Corporate Awards & Recognitions Launch of 2 New Industrial Townships Concept Home 2030 Pagoh Special Economic Zone & Ham
Slide 7: Financial Performance
Financial Performance Fourth Quarter (Q4 FY2021) & Twelve Months ended 31 December 2021 (FY2021) City of Elmina, Shah Alam 7
Slide 8: Profit & Loss Performance
Profit & Loss Performance Full year revenue increased by 7.6% YoY and bottom line recovered from loss; Q4 results back to black QoQ and YoY with all segments profitable Q4 FY2020 RM mil Q4 FY2021 (restated) YoY% Q3 FY2021 QoQ% Key Takeaways Revenue 739.4 705.2 4.8 388.2 90.4 Q4 FY2021 vs Q4 FY2020 (
Slide 9: Segmental Revenue and PBT/(LBT) Analysis for FY2021
Segmental Revenue and PBT/(LBT) Analysis for FY2021 New launches, healthy development progress and commitment to clear unsold inventories resulted in better performing PD segment Property Development (PD) Q4 FY2021 vs Q4 FY2020 FY2021 FY2020 • Significant increase in PD’s revenue and PBT to RM692.4m
Slide 10: Segmental Revenue and PBT/(LBT) Analysis for FY2021
Segmental Revenue and PBT/(LBT) Analysis for FY2021 I&AM buoyed by KL East Mall’s (“KLEM”) contribution and Leisure turnaround in Q4; both segments recording profits in the quarter Investment & Asset Management Leisure FY2021 FY2020 FY2021 FY2020 Revenue RM94.7m RM69.0m 37.2% Revenue RM55.5m RM71.7m
Slide 11: Cash and Debt as at 31 December 2021
Cash and Debt as at 31 December 2021 Cash balances increased by 13.5% YoY with positive operating cash flow & net gearing remained moderate at 32.0% (without Battersea Power Station-related borrowings: 25.0%) Cash & Cash Equivalents Group Debt (RM mil) (RM mil) Net operating cash inflow remains posi
Slide 12: Property Development Inventories
Property Development Inventories Completed inventories reduced to new low of ~RM330m from FY2020’s of ~RM574m; higher ongoing inventories (+34%) to unlock land value Inventories in Carrying Value Inventories in GDV & Units 31 Dec 2020 31 Dec 2021 (Restated) Not New Launches RM295.1m (8.9%) Incoming
Slide 13: Operational Performance
Operational Performance FY2021 & YTD FY2022 City of Elmina, Shah Alam 13
Slide 14: Sales Achieved by Product Type and Location
Sales Achieved by Product Type and Location By Product Type: Diversification beyond residential landed products, with high-rise and industrial products By Location: Other townships beyond Guthrie Corridor emerging as important contributors FY2021 Sales Achieved By Product Type RM2,950.0m By Location
Slide 15: Unbilled Sales as at 31 December 2021
Unbilled Sales as at 31 December 2021 Unbilled sales continued to increase and recorded RM2.4b on the back of strong sales & bookings; unbilled sales cover ratio highest at 1.2x 3,000.0 1.4 1.2 2,500.0 1.1 1.2 RM2,383.3m as at Q4 FY2021 1.0 0.9 By Property Development Type 1.0 0.9 1.0 2,000.0 Townsh
Slide 16: FY2021 Launches
FY2021 Launches Highest ever launches at RM3.7b GDV & 3,594 units; Exceptional residential (excl. statutory) and industrial average take-up rate of ~90% and ~88% respectively, ~87% for all product launches FY2021: 3,594 units @ RM3,720.0 million GDV ~87% average take-up rate for all launches 100% Ar
Slide 17: FY2022 Launch Plan
FY2022 Launch Plan FY2022 sales target of RM2.6b supported by RM2.8b GDV launch plan with strategic product mix (~81% residential, ~16% industrial); RM788.1m GDV to be launched in Q1 Q1 FY2022 Planned Launches in FY2022 Units to be Launched: 1,096 | GDV to be Launched: RM788.1m 3,976 units I RM2,802
Slide 18: Battersea Power Station Updates
Battersea Power Station Updates Achieved ~£400m sales in FY2021 in line with property completion & handover; 84% commercial spaces in the Power Station (Phase 2) have been successfully let out Operational Highlights Key Upcoming Milestones FY2021 Residential Sales Achieved: YTD Commercial Spaces Let
Slide 19: Battersea Power Station Updates
Battersea Power Station Updates Phase 2 & 3A – Practical completion on track for the balance sections; Phase 2, Phase 3A retail & hotel and residential Phase 3B set to launch in September 2022 Phase 2: The Power Station Phase 3: The Electric Boulevard ▪ F&B retailers set to open from Sept 2022: Le B
Slide 20: Updates on Land Bank
Updates on Land Bank
Slide 21: Land Bank Updates – Acreage & GDV
Land Bank Updates – Acreage & GDV* Current analysis shows land GDV of >RM100b at ~16.2k gross acres (~8.6k net acres) translating to RM11.8m/acre (on net acreage basis) Current Land Bank Analysis: RM104b, ~16.2k gross acreage Ongoing Developable Lands Future Development Lands Non-core Lands ~10,404
Slide 22: Strategy Moving Forward
Strategy Moving Forward
Slide 23: MY: Economic & Property Market Outlook
MY: Economic & Property Market Outlook GDP rebounded by 3.6% in Q4, brought 2021 GDP growth to 3.1%; GDP growth forecast for 2022 robust at 5.5% to 6.5% Bank Negara Malaysia (BNM) The Malaysian economy is expected to remain on its recovery path in line with continued expansion in global growth and h
Slide 24: UK: Central Bank Raised Rate to 0.5% on 3 Feb 2022
UK: Central Bank Raised Rate to 0.5% on 3 Feb 2022 after First Hike in Dec 2021 Housing prices continued to rise notwithstanding rate rise First Back-to-back Interest Rate Hike since 2004 Impact to House Prices? Housing prices continued to rise in Jan 2022 (+9.7% YoY) at a slower monthly growth of 0
Slide 25: SHIFT25 – A Real Estate Company by 2025
SHIFT25 – A Real Estate Company by 2025 Towards becoming Malaysia’s Leading and Most Admired Real Estate Company Pure-Play Property Developer Real Estate Company Business Model Master Developer Community Builder Investment & Asset Manager • Township & Integrated Development • Lifestyle & Leisure • F
Slide 26: Expectations for FY2022
Expectations for FY2022 Commitments for another better financial year Unbilled Sales Fund Strategic Gross Profit Operating Completed Diversify product Sales Target / LTM PD Management Launches Margin Cash Flow Stock pipeline Revenue Platform Target <10% of More residential Target RM2.8b Target to Co
Slide 27: Investment Proposition
Investment Proposition City of Elmina, Shah Alam 27
Slide 28: Investment Proposition
Investment Proposition Strengthened fundamentals and track records for growth Improved Financial 1 Resilient Financial Position Performance Solid Balance Sheet Revenue Visibility * as at 6 February 2022 FY2021 Revenue Moderate Net Gearing FY2021 Sales FY2021 Unbilled Sales RM2,219.9m (+7.6% YoY) 32.
Slide 29: End of Presentation | Q&A
End of Presentation | Q&A City of Elmina, Shah Alam 29
Slide 30: Q4 FY2021 Financial Results Virtual Briefing Session
O4 FY202 jem — FINANCIAL RESULTS VIRTUAL BRIEFING SESSION London UC simedarbyproperty.com
Slide 31: Thank You
Thank You Sime Darby Property Berhad 197301002148 (15631-P) No. 2, Jalan PJU1A/7A Ara Damansara 47301, Petaling Jaya Selangor, Malaysia simedarbyproperty.com
Slide 32: Appendices
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Slide 33: Property Development Inventories
Property Development Inventories By Type – mainly from industrial products (~29%) followed by high-rise (~25%) & landed (~23%) products Statutory RM162.0m (4.9%) Industrial Commercial RM947.9m (28.6%) RM290.1m (8.7%) Inventories in Others GDV Residential High- RM342.1m (10.3%) RM3,320.1m Rise RM825.
Slide 34: Speed of development to monetise land in Hamilton Nilai
Speed of development to monetise land in Hamilton Nilai Launched Hamilton Nilai in Oct 2021; 100% total LOO accepted/Earnest Deposit received for Plot 1 & 2 as at 9 February 2021 1 List of key buyers: Acotec 3 2 • Genesis Aluminium Asian TFS Holdings Resinated Feld 4 Industries Sdn. Bhd. 8 (12.64 ac
Slide 35: 2019 – 2021 SD Prop Key Sustainability Achievements
2019 – 2021 SD Prop Key Sustainability Achievements Please visit here to access Sime Darby Property’s Sustainability Report 2020 for more information FTSE4Good BURSA A constituent of MSCI FTSE4Good ACWI CDP Inclusion Emerging Market Special Mention Award RATED AA+IS SMALL CAP INDEX M (2018-current)
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