Sime Darby Property Bhd. · MYX:SIMEPROP
Sime Darby Property Bhd — Q2 FY2021 Earnings Presentation
37 slides from Sime Darby Property Bhd's earnings presentation, Aug 26, 2021
Slide 1: Q2 FY2021 Financial Results Virtual Briefing Session
2-FY202 que FINANCIAL RESULTS VIRTUAL BRIEFING SESSION = fig a Sallie ee FTSE4Good tendon UK simedarbyproperty.com
Slide 2: Table of Contents
Table of Contents Page 1. H1 FY2021 Key Highlights (Financial & Operational) 3–4 2. Financial Performance for Q2 FY2021 and H1 FY2021 5 – 10 3. Operational Performance for H1 FY2021 11 – 23 4. Strategy Moving Forward 24 – 29 5. Investment Proposition 30 – 31 6. Appendices 35 – 37 City of Elmina, Sha
Slide 3: H1 FY2021 Key Highlights (Financial)
H1 FY2021 Key Highlights (Financial) Revenue of ~RM1.1b and PBT of RM152.3m; translating into PATAMI of RM80.5m in H1 FY2021 Financial Performance Snapshot Segment Revenue Leisure Revenue Reported PBT Reported PATAMI 28.9 Property (2.5%) Development RM1,092.3m RM152.3m RM80.5m 1,090.8 (93.4%) Invest
Slide 4: H1 FY2021 Key Highlights (Operational)
H1 FY2021 Key Highlights (Operational) Sales achievement of RM1.3b met 54% of full year sales target of RM2.4b Operational Highlights Achieved RM680.3m sales in Q2FY21 & RM1.3b sales in H1FY21 buoyed by (1) SDP Virtual offers a new home viewing aggressive & effective digital marketing efforts (built
Slide 5: Financial Performance
Financial Performance Second Quarter (Q2 FY2021) & First Six Months (H1 FY2021) ended 30 June 2021 City of Elmina, Shah Alam 5
Slide 6: Profit & Loss Performance
Profit & Loss Performance H1 revenue and PBT increased by ~43% YoY and ~227% YoY; Q2 remained profitable: revenue (+75% YoY) and PBT (+150% YoY) amid stricter containment measures Q2 FY2020 RM mil Q2 FY2021 (restated) YoY% Q1 FY2021 QoQ% Key Takeaways Revenue 502.8 288.2 74.5 589.5 (14.7) Q2 FY2021
Slide 7: Segmental Revenue and PBT/(LBT) Analysis for Q2 FY21 & H1 FY21
Segmental Revenue and PBT/(LBT) Analysis for Q2 FY21 & H1 FY21 Improved H1 FY21 performance backed by strong sales as marketing efforts intensified Property Development (PD) • In Q2 FY21 itself, revenue and PBT improved by 104.7% YoY and 179.5% H1 FY2021 H1 FY2020 YoY respectively, attributed to the
Slide 8: Segmental Revenue and PBT/(LBT) Analysis for Q2 FY21 & H1 FY21
Segmental Revenue and PBT/(LBT) Analysis for Q2 FY21 & H1 FY21 I&AM revenue buoyed by KLEM’s contribution; Leisure segments recorded lower losses Investment & Asset Management Leisure H1 FY2021 H1 FY2020 H1 FY2021 H1 FY2020 Revenue RM48.7m RM36.2m 34.5% Revenue RM28.9m RM30.8m 6.1% PBT RM12.4m RM3.5
Slide 9: Cash and Debt as at 30 June 2021
Cash and Debt as at 30 June 2021 Healthy cash balances with continued positive operating cash flow generated from sales of completed stocks Cash & Cash Equivalents Group Debt (RM mil) (RM mil) 1,200.0 0.3 6.7 31 Dec 2020 13.3 30 June 2021 (Restated) 1,000.0 95.0 RM3,506.5m 3.0% RM3,409.4m 801.8 800.
Slide 10: Property Development Inventories
Definitions: ▪ Completed – Projects completed as at 1 Jan 2021 ▪ Incoming Completed – Projects to be completed in FY2021 Property Development Inventories ▪ Not New Launch – Target completion after FY2021 ▪ New Launch – Projects launched in FY2021 More property development to unlock land value; compl
Slide 11: Operational Performance
Operational Performance H1 FY2021 City of Elmina, Shah Alam 11
Slide 12: Sales Achieved by Product Type and Location
Sales Achieved by Product Type and Location Residential landed and Industrial products remain as key sales contributors with ~70% sales; Guthrie Corridor continued to be the preferred location H1 FY2021 Sales Achieved By Product Type RM1,310.5m By Location (RM mil) (RM mil) Statutory Commercial 43.4
Slide 13: Unbilled Sales as at 30 June 2021
Unbilled Sales as at 30 June 2021 Unbilled sales grew by 10.8% from 31 March 2021; increased revenue visibility for the next two years By Property Development Type By Location 30 June 2021 31 Mar 2021 Integrated Township RM1,834.8m 10.8% RM1,655.8m Development Development RM272.0m RM1,562.8m (14.8%)
Slide 14: Q2 FY2021 Launches (1/3)
Q2 FY2021 Launches (1/3) Q2 FY2021: RM1.4b GDV & 1,577 units launched; bringing H1 FY2021 total to RM1.6b GDV & 1,806 units launched with commendable take-up rates Total Launches in Q2 FY2021 1,577 units @ RM1,443.7 million GDV Residential Landed - 609 units @ RM549.3 million GDV EG4A & 4B, City of
Slide 15: Q2 FY2021 Launches (2/3)
Q2 FY2021 Launches (2/3) Exceptional response to Jendela Residences in May resulted in 78% take-up rate; resulting in Tower 2 opening up in August 2021 Residential High-rise - 254 units @ RM432.0 million GDV Jendela Residences, KLGCC Resort (Phase 1) 78% Take-up rate Residential High-rise 254 units,
Slide 16: Q2 FY2021 Launches (3/3)
Q2 FY2021 Launches (3/3) Launched industrial products from Elmina Business Park & Hamilton MVV worth ~RM340m GDV Industrial - 46 units @ RM339.8 million GDV Statutory - 668 units @ RM122.6 million GDV 100% Take-up rate I21, Elmina Business Park Serenia Amalina, Serenia City Industrial Land 1 unit, G
Slide 17: H2 FY2021 Launches RM2.1b
H2 FY2021 Launches Strategic planned launches worth ~RM2.1b, supported by enhanced digital marketing & sales capability and ongoing HOC Planned Launches for H2 FY2021 ~RM2.1 billion GDV 2,165 units Agile Launch Plan with Healthy Product Mix Planned launches in Q3: RM987.8m GDV & 602 units GDV GDV Pr
Slide 18: End-to-end Online Marketing & Sales Solution Built In-House
End-to-end Online Marketing & Sales Solution Built In-House To create a seamless online sales experience for our customers 18
Slide 19: Fully Digital & Online Sales Experience
Fully Digital & Online Sales Experience Convenience for homebuyers to view, register, select and complete payments online Advertise Product Register Online Unit Pay & Receipt Documentation Online Viewing Interest Guided Sales Selection Virtual Sales Gallery 19
Slide 20: Battersea Power Station Updates
Battersea Power Station Updates Phase 1 - Circus West Village PHASE 1 CIRCUS WEST VILLAGE ▪ Completed in 2017 ▪ All retail is fully re-opened following the relaxation of government restrictions ▪ Site activation and events planned throughout Summer to drive footfall and continue to ensure BPS is a v
Slide 21: Battersea Power Station Updates
Battersea Power Station Updates Phase 2 - Completion of Switch House West and successful handovers to residents PHASE 2 Switch House West (SHW) KEY FACTS 540,000 sq. ft. office space 2,000 Person capacity events venue 253 Apartments 420,000 sq. ft. of retail and F&B 18,500 sq. ft. of Foodhall ▪ Welc
Slide 22: Battersea Power Station Updates
Battersea Power Station Updates Phase 3a - Scheduled for completion by 2022 PHASE 3A KEY FACTS ELECTRIC BOULEVARD 30 Shops and restaurants 542 Apartments 164 Bed Art’otel with restaurant 1 New Zone One Tube Station Frank Gehry & Foster + Partners Well-known architects for residential Battersea Roof
Slide 23: Year-to-date Awards & Recognitions
Year-to-date Awards & Recognitions Our credibility in building sustainable communities proven through multiple recognitions received Property Development Category January February April April June August ▪ Responsible Developer: Building Sustainable Development Award ▪ The Editor’s Choice Awards for
Slide 24: Strategy Moving Forward
Strategy Moving Forward City of Elmina, Shah Alam 24
Slide 25: Key Challenges in H2 FY2021
Key Challenges in H2 FY2021 Remains challenging; Agile launch plan, income diversification & cashflow preservation are essential Agenda Decision on Commitment for equity COVID-19 pandemic Slight Improvement in International Accounting injection to Battersea continues to prevail Residential Overhang
Slide 26: MY: Gradual economy recovery in Q4 2021 and to accelerate in 2022
MY: Gradual economy recovery in Q4 2021 and to accelerate in 2022 Forecasted GDP growth for 2021 revised lower to 3.0% - 4.0% The Malaysian economy is projected to expand between 3.0% and 4.0% in 2021, down from the earlier projected growth of 6.0% – 7.5% • Going forward, the growth trajectory will
Slide 27: MY: Property Market Remains Challenging in H2 FY2021
MY: Property Market Remains Challenging in H2 FY2021 Heightened pandemic cases prolongs the recovery of property market towards 2022 from “While the outlook was initially positive for a rebound by the end of the year, the high rate of infections and restricted movements at the start of 2021 might de
Slide 28: UK: Economy returns to pre-pandemic levels by end of 2021
UK: Economy returns to pre-pandemic levels by end of 2021 Housing market momentum remains positive from on the UK’s market: Scenes from UK’s post-easing of COVID-19 rules: “ • Economy We expect economic momentum to continue as the remaining restrictions are lifted on 19 July • We are forecasting GDP
Slide 29: Focus Remains on 4 CPs to Achieve End-State 2025
Focus Remains on 4 CPs to Achieve End-State 2025 Effective strategies to stay resilient amid the challenging environment The 4 Corporate Priorities will serve as a guide to pivot our business… …underpinned by 7 Focus Areas 1 Broaden Income Streams 2 Deepening Competencies 1 Operational Excellence •
Slide 30: Investment Proposition
Investment Proposition City of Elmina, Shah Alam 30
Slide 31: Investment Proposition
Investment Proposition Strong fundamentals and track records for growth Improved Financial 1 Resilient Financial Position Performance Solid Balance Sheet Revenue Visibility * as at 30 June 2021 ^ as at 8 August 2021 H1 FY21 Revenue Low Net Gearing Unbilled Sales Bookings RM1,092.3m (+42.8% YoY) 29.9
Slide 32: End of Presentation | Q&A
End of Presentation | Q&A City of Elmina, Shah Alam 32
Slide 33: Financial Results Virtual Briefing Session
FINANCIAL RESULTS VIRTUAL BIBI SESSION Boverrop MALAYSIA'S BEST MANAGED. SISUSTAINABLE PROPERTY AWARDS: FTSE4Good ‘evict simedarbyproperty.com
Slide 34: 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 Cover photo credit to 'Malaysiaku, in Pictures Photo Contest 2019' winner (extreme right)
Slide 35: Appendices
Appendices City of Elmina, Shah Alam 35
Slide 36: Remaining Landbank and GDV
Remaining Landbank and GDV Sustainable growth with remaining developable period of 25-30 years Ongoing Remaining Developable Land RM33.4 bil Remaining developable area for Other areas in Klang Valley (37.4%) future developments (MVV, 2,014 (13.3%) Planters’ Haven West and others) RM5.7 bil Negeri Se
Slide 37: Focus Areas
7 Focus Areas Connecting the dots for our organisational transformation journey 1 Operational Excellence Establish a firm foundation to transform the Group into a performance-driven organisation through continuous improvement in the way we work 2 Organisational Excellence Raise productivity and enri
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