Sunway Bhd. · MYX:SUNWAY
Sunway Bhd — CIMB 6th Annual Malaysia Corporate Day 2014
52 slides from Sunway Bhd's conference presentation, Jan 8, 2014
Slide 1: Sunway Berhad
Sunway Berhad CIMB 6th Annual Malaysia Corporate Day 8 JANUARY 2014
Slide 2: Corporate Profile
Corporate Profile • Sunway Bhd was listed under the property sector of the Main Market of Bursa Malaysia on 23 August 2011 following the merger between Sunway Holdings Bhd and Sunway City Bhd • The enlarged Sunway Bhd currently has a market capitalization of approximately RM5.0 billion Tan Sri Dato
Slide 3: Integrated Real Estate Business Model
Integrated Real Estate Business Model Prop Con Collaboration* Integrated Properties Construction Integrated Properties REIT Property Design & Land bank Construction & Supply Chain Marketing & Investment & REIT & REIT Master- acquisition Management Sales Business Management plan Operators Build for O
Slide 4: Proven Track Record
Proven Track Record Core PATMI('mil) 351 327 286 229 223 181 121 2006 * 2007 * 2008 * 2009 * 2010 2011 2012 * SunCity & Sunway Holdings Combined 4
Slide 5: Strong Financial Performance
Strong Financial Performance Sunway Berhad 31-Dec-10 31-Dec-11 31-Dec-12 30-Sep-12 30-Sep-13 Audited Audited Audited Unaudited Unaudited RM mil RM mil RM mil RM mil RM mil Revenue 3,102.1 3,691.7 3,849.2 2,677.8 3,205.2 EBITDA * 621.8 592.8 705.9 466.3 544.2 PATMI 684.4 387.6 530.6 313.1 354.0 PATMI
Slide 6: Sound Balance Sheet
Sound Balance Sheet Sunway Berhad 31-Dec-10 31-Dec-11 31-Dec-12 30-Sep-13 Audited Audited Audited Unaudited RM mil RM mil RM mil RM mil Paid-up share capital # 1,292.5 1,292.5 1,723.5 Share premium & other reserves 1,865.3 2,916.5 3,476.2 4,117.9 Merger reserve 1,652.6 (1,192.0) (1,192.0) (1,192.0)
Slide 7: Integrated Property: A Complete Real Estate Conglomerate
Integrated Property A Complete Real Estate Conglomerate 7
Slide 8: Proven Integrated Township Developer
Integrated Property Proven Integrated Township Developer RM11 bil Sunway Resort City Retail Commercial Education Healthcare Hospitality Theme Park Residential • Malaysia’s 1st BEFORE integrated township with 7 components. • Attracts more than 40 million visitors p.a. through its shop
Slide 9: Multiple Strategic Locations
Integrated Property Multiple Strategic Locations Remaining Landbank Others Singapore RM2.3B RM2.2B China 5% Klang Valley Total 4% Landbank • 3,388 acres RM1.4B RM10.5B 3% 21% Penang Total GDV • RM50.5 billion RM3.4B 7% RM50.5 bil Effective GDV • RM30.8 billion Johor Development RM30.7B Period • Up t
Slide 10: Sunway South Quay
Sunway South Quay GDV: RM4.0 billion Area: 49 acres 10
Slide 11: Sunway Geo @ Sunway South Quay Residences
Integrated Property Sunway Geo @ Sunway South Quay Residences Sunway Geo Residences-Condo Take up: 60% (inc bookings 90%) GDV: RM 400 mil Retail Shops Sunway Geo Retail Shops Phase 1 Take up: 97% Phase 2 Take up: 76% (inc bookings 90%) GDV: RM 480 mil Flexi Suites Sunway Geo Flexi Suites Phase 1 Tak
Slide 12: Sunway South Quay
Integrated Property Sunway South Quay Residences LaCosta – GDV: RM 403m Take up: 85% A’Marine – Nautica – Bayrocks – 12 GDV: RM 240m Take up: 95% GDV: RM 171m Take up: 100% GDV: RM 434m Take up: 80%
Slide 13: Elevated BRT – Sunway Line
Integrated Property Elevated BRT – Sunway Line • Contract Sum: RM453 mil from Prasarana • Additional contribution by Sunway: RM99 mil • 7 halts • (3 in Sunway Resort City) • PPP project between Prasarana & Sunway • Estimated completion in 2015 • Eco-friendly buses 13
Slide 14: Sunway Velocity
Integrated Property Sunway Velocity Sunway Velocity V-Designer Suites GDV RM 251m Take-up 99% GDV: RM 3.0 billion V-Retail & Office RM 175m 97% Area: 19 acres V-Residences RM 245m 98% 14
Slide 15: Other Integrated Developments – Klang Valley
Integrated Property Other Integrated Developments – Klang Valley Sunway Damansara MRT Package V4 (Viaduct) Contract RM1.17 bil Sum Length 6.6 km Period 2012 – 2016 Sunway Velocity 15 MRT Line 1
Slide 16: Sunway Damansara
Integrated Property Nexis @ Sunway Damansara Retail GDV RM 301m Take-up 95% Sunway Damansara Office RM 107m 100% GDV: RM 1.7 billion SOHO RM 119m 80% Area: 15 acres 16
Slide 17: Sunway Iskandar
Sunway Iskandar GDV: RM 30 billion Area: 1,770 acres 17
Slide 18: Sunway's Next Growth Catalyst
Integrated Property Sunway’s Next Growth Catalyst • Close proximity to Singapore • Supported by world-class ports, 2 international airports in Senai and Changi, 2 causeways and a railway link into Singapore. Danga Bay Legoland Causeway • Almost 3 times the Medini size of Singapore, Living Puteri wit
Slide 19: Jewel Landbanks in Iskandar Malaysia
Integrated Property Jewel Landbanks in Iskandar Malaysia 1 2 Southern Access Location Medini Iskandar Pendas, Johor Area 691 acres (280 hectares) 1,079 acres (437 hectares) • 99 yr lease: Up to RM745.3 mil • Up to RM596.6 million Purchase Consideration • 30 yr lease ext: RM74.5 mil (10%) • RM12.69 p
Slide 20: Introducing Sunway Iskandar
Integrated Property Introducing Sunway Iskandar
Slide 21: Close Proximity to Second Link
Integrated Property Close Proximity to Second Link
Slide 22: Medini Living – Ready Infrastructure
Integrated Property Medini Living – Ready Infrastructure
Slide 23: Sunway Iskandar Phase 1
Integrated Property Sunway Iskandar Phase 1 GDV RM 300 mil Type of dev Office & Service Apartments No. of units Office (167 units); Service Apartments (328 units) Office (Feb 2014); Service Launch date Apartments (Mac 2014)
Slide 24: New Land Bank Strengthens Penang Presence
Integrated Property New Land Bank Strengthens Penang Presence LOCATION ALONG JALAN PAYA TERUBONG 5 MINUTES FROM KEK LOK SI TEMPLE 15 MINUTES FROM PENANG AIRPORT & PENANG BRIDGE TOTAL LAND SIZE 24.458 ACRES (1,065,390 SQ. FT) TENURE FREEHOLD TOTAL GDV APPROXIMATELY RM1.5 BILLION PROPOSED DEVELOPMENT
Slide 25: Singapore – Property Development International
Integrated Property – Property Development International Singapore • Presence in Singapore since 2007 via 30% JV Miltonia Residences, Yishun with Hoi Hup GDV SGD 381m Completed Projects: Take up 100% Type Private Devt, Leasehold City View @ Boon Keng GDV SGD 421m Arc @ Tampines Units 714 GDV SGD 466
Slide 26: Singapore – Wholly owned by Sunway
Integrated Property – Property Development International Singapore Wholly owned by Sunway Royal Square @ Novena Mount Sophia Avant Parc, Sembawang Location Novena MRT Dhoby Ghaut MRT Sembawang GDV SGD 493m SGD 822m SGD 35m Type Medical Suites, Hotel & Retail Low Rise Condominium 3-storey terrace Uni
Slide 27: China - Tianjin
Integrated Property – Property Development International China - Tianjin To develop a city that will be a “Model for Sustainable Development”. It is a strategic collaboration of the Chinese and Singaporean Consortium Sunway & SSTEC JV First Launch GDV RM 90 million Units 168 40% 60% Type Condominium
Slide 28: Launches and Sales Trend
Integrated Property Launches and Sales Trend Effective Launches Launches TARGET Effective Sales Sales 2.4 bil 2.3 bil 2.1 bil 2.1 bil 1.8 bil 1.8 bil 1.8 bil 1.8 bil 1.7 bil 2.0 bil 1.8 bil 1.7 bil 1.5 bil 1.3 bil 1.6 bil 1.4 bil 1.4 bil 1.3 bil 851 mil 980 mil 1.1 bil 994 mil 776 mil 558 mil FP2009
Slide 29: Investment Properties
Integrated Property Investment Properties Under Development @ Bandar Sunway @ Kuala Lumpur Properties The Pinnacle Sunway Pyramid 3 Sunway University Sunway Velocity New Academic Block Shopping Mall Type 25-storey Grade A Hotel & Mall 12-storey Academic Shopping Mall Office Extension Block GDV RM350
Slide 30: Malaysian REIT with RM5.2B Asset Value
Integrated Property – Sunway REIT Malaysian REIT with RM5.2B Asset Value Sunway Pyramid Sunway Carnival SunCity Ipoh Overall Snapshot Shopping Mall Shopping Mall Hypermarket Market Cap* RM 4.5 billion GFA 11.6 million sf NLA 3.8 million sf DPU (FY 2012) 8.3 sen Yield 5.4% Gearing 31% Sunway Resort H
Slide 31: Sunway Construction: A Global Builder
Sunway Construction A Global Builder 31
Slide 32: One Stop Construction Company
Construction One Stop Construction Company Rihan Heights Proven turnkey contractor providing holistic services which includes civil and building construction, geotechnical engineering, MEP engineering, precast concrete and machinery rental . Design-and-build capabilities. First to employ VDC in
Slide 33: Construction Order Book – RM3.5 billion
Construction Construction Order Book – RM3.5 billion Contract O/S Order Sum Book RM'mil RM'mil Infrastructure MRT Package V4 (Sec 17 to Semantan) 1,173 801 LRT Kelana Jaya Line Extension (Package B) 569 273 BRT Sunway Line 452 361 Johor BRT – Sunway Line Urban Wellness Centre 283 270 72% Pinewood Is
Slide 34: In the pipeline
Construction In the pipeline Tender Rolling Order Book – RM1.5 billion per month Aim to maintain order book with replenishment of approximately RM2.5 billion for 2014 (including internal orders) To continue to ride on Economic Transformation Programme (ETP) and 10th Malaysia Plan projects Le
Slide 35: Key Takeaways
Key Takeaways Leading Property & Top 5 property group in Malaysia by market capitalization Construction Group Reputable developer with multiple product offerings in Malaysia Successful track record as an integrated township developer with 7 components Prop Con Collaboration Integrated Real Int
Slide 36: Appendix
$ sunway Appendix
Slide 37: Merger Synergies
Merger Synergies Prop-Con Synergistic Using VDC Savings • Reduce design faults, • Bigger Group construction costs Procurement and delays –better discounts • More cost effective • Combined Group design Treasury- lower cost • Better monitoring of Merger • Streamlined variation support costs Synergies
Slide 38: New Organisation Structure
New Organisation Structure Executive Chairman President Prop Development Quarry Group CFO Office (MY/SG) Prop Development Trading & Group Strategy & (International) Manufacturing Corporate Dev’t Group Corporate Prop Investment Healthcare Services Construction Others (Building Mat, Spunpile, etc) Pro
Slide 39: Property Investment
Property Investment 1 Shopping Mall 2 Education Buildings Sunway Giza Sunway University Monash University College Sunway Campus Location Sunway Damansara Location Bandar Sunway Descriptn 3-storey neighbourhood mall which Descriptn Malaysia’s only township with 2 tertiary offers various lifestyles se
Slide 40: Hospitality Hotels & Retreat
Hospitality 3 Hotels & 1 Retreat Sunway Hotel Sunway Hotel Phnom Sunway Hotel Hanoi Banjaran Hotsprings Georgetown Penh Retreat Location Georgetown, Phnom Penh, Cambodia Hanoi, Vietnam Ipoh, Perak Penang Rooms 250 rooms, 4- 138 rooms, 4-star 145 rooms, 4-star hotel 25 rooms, 5-star retreat star hote
Slide 41: Hospitality: Hotels Under Management
Hospitality Hotels Under Management Sunway Resort Hotel Pyramid Tower Hotel Sunway Putra Hotel Sunway Hotel & Spa Seberang Jaya Location Bandar Sunway Bandar Sunway Kuala Lumpur Seberang Jaya Rooms 439 rooms, 5-star 549 rooms, 4-star 618 rooms, 5-star 202 rooms, 4-star hotel hotel hotel hotel Lease
Slide 42: Leisure Theme Parks
Leisure 2 Theme Parks Sunway Lagoon Lost World of Tambun Location Bandar Sunway Tambun, Ipoh, Perak Intro Malaysia’s first and the largest Premier First themed water park that provides water theme park hotsprings in Malaysia Area 60 acres 40 acres Awards Winner of Asia’s Best Attraction Award for 5
Slide 43: Healthcare Medical Centre
Healthcare 1 Medical Centre Sunway Medical Centre Location Bandar Sunway Intro One of Malaysia’s most recognized Medical Centre which has won the Quality Excellence Management Award Beds 342 Specialist Consultation Suites 100 Operating Theatres 12 Lease Rental RM 19 mil (2013) + 3.5% increment p.a.
Slide 44: Trading and Manufacturing
Trading and Manufacturing Segment • 45 branches over 7 countries Hydraulic Hydraulic Contribution Hoses & Hoses Fittings Strong own • 50% PBT - overseas market Fittings branding – “SunFlex” 50 % • 114 agency lines for heavy equipment and industrial products Undercarriage Complete Engine Frame Unde
Slide 45: Quarry and Building Materials
Quarry and Building Materials Quarry Operations Building Materials Operations Aggregates Re-entered Malaysian quarry business in Pavers 2005, with 3 quarries. Expanded to current Annual Production: 7 quarries – Current : 1.8 mil m2 Market share Another plant in Shanghai – Klang Valley - 10%
Slide 46: What is VDC?
What is VDC? Virtual Design & Construction = Building Information Modeling + Integrated Project Delivery Concept 3D Model Integration 4th Dimension: 5th Dimension: with TIME (4D) COST (5D) Definition : VDC is an integrated approach of managing design & construction using digital information models O
Slide 47: How VDC works?
How VDC works? Project Modelers Owners / Architects Managers Developers Structural Engineers Facility Management MEP Engineers Government Agency Subcontractors General Contractors 47 Suppliers *IPD enabling Cost, Design & Schedule to flow freely and transparently across all parties in early stages 4
Slide 48: Integrated Approach
Integrated Approach VDC = Technology + Processes + Organization Tech (Building Info Modeling 5D tool) • The discrete software components can be acquired • The integrated system, collaborative processes and aligned organization are much more difficult to replicate • Early collaboration avoids unneces
Slide 49: Benefits of VDC
Benefits of VDC Cost-effective Faster delivery Reduced project risk procurement •Automated rather than manual •Use more cost-effective •Greater timing processes materials (design to build) accuracy •Shared platform rather than •Consolidate procurement •Greater cost duplication of data across formats
Slide 50: Overall Competitor Analysis
Overall Competitor Analysis Comparison by Mkt Cap and PATMI 800 12,000 10,910 700 10,000 10,000 600 8,000 8,250 500 7,010 Mkt Cap (RM'mil) PATMI (RM'mil) 400 6,000 300 3,700 4,570 4,000 3,070 4,050 200 2,460 2,000 100 196 265 292 386 418 499 541 573 702 - - IGB Corp Mah Sing IJM Land WCT SP Setia IJ
Slide 51: Overall Competitor Analysis
Overall Competitor Analysis Comparison by P/E and P/B 32.00 20.15 18.92 16.78 16.52 16.00 Average= 14.04 14.24 13.86 11.57 8.00 7.97 6.38 4.00 2.24 2.00 1.74 1.68 1.42 Average= 1.42 1.27 1.39 0.98 1.00 0.89 1.15 0.50 Gamuda IGB Corp SP Setia IJM Corp UEM IJM Land Mah Sing Sunway Bhd WCT 51 P/E Price
Slide 52: Thank You
Thank You Email : irsunwayberhad@sunway.com.my Website : www.sunway.com.my This presentation may contain certain forward looking statements due to a number of risks, uncertainties and assumptions. Representative examples of these factors include (without limitation) general industry and economic con
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