Ewi Capital Bhd · MYX:EWICAP
Ewi Capital Bhd — EcoWorld International Berhad — Q4 FY2021 Earnings Presentation
17 slides from Ewi Capital Bhd's earnings presentation, December 2021
Slide 1: 4Q FY2021 Results & Briefing
4Q FY2021 Results & Briefing December 2021
Slide 2: Profit & Loss
PROFIT & LOSS • Higher gross profits arising from handover of Yarra One units RM83m • Lower share of results from JVs due to: • Additional incentives & higher commission to agents to accelerate sales of completed units after expiry of UK stamp duty holiday in June 2021 • RM50.18 million loss in 4Q 2
Slide 3: Analysis of 4Q 2021 Loss from JVs
ANALYSIS OF 4Q 2021 LOSS FROM JVs The accounting adjustments which contributed towards the loss of RM50.18 million in 4Q 2021 are: • Impairment loss of £3.6m (approx. RM20.2 million) on inventories based on net selling prices after taking into account additional incentives and commissions to acceler
Slide 4: Prospects of UK JVs
PROSPECTS OF UK JVs £ mil EcoWorld- EcoWorld EcoWorld-Ballymore (31 Oct 2021 – unaudited ) Ballymore London Fixed Assets 46.4 25.3 • RM746 million cash @ 31 Oct 2021 Cash 130.9 17.1 • Projects > 90% completed @ 31 Oct 2021 – fully completed by FY2022 Other current assets 514.3 417.5 • Inventory stat
Slide 5: Gearing
GEARING RM949m • Focus on cash generation enabled total dividends of 6 sen to be paid to shareholders in FY2021 • Net debt ratio reduced further to only 0.20 x as at 31 October 2021 • Remaining borrowings will be substantially paid off by FY22-23 RM564m RM1,233m RM336m RM284m RM901m Oct-2020 Oct-202
Slide 6: FY2021 Sales Achieved & Prospects for FY2022
FY2021 Sales Achieved & Prospects for FY2022
Slide 7: Sales Performance
SALES PERFORMANCE RM1,382m RM1,377m • Decent growth in local sales & sustained interest in Embassy Gardens • Strong rebound in Australian sales despite multiple lockdowns implemented during FY2021 RM985m RM794m RM469m RM483m RM100m FY2020 FY2021 (RM71m) (Restated) FY2020 FY2021 FY2020 FY2021 FY2020
Slide 8: London Market
LONDON MARKET House Price Index • House price in Outer London grew 7.1% in the 12 Sep-21, months to Sept 2021 133.8 Sep-20, 124.9 • Demand in Inner London relatively muted due to border closure Sep-20, Sep-21, • Foreign interest lower after expiry of stamp duty 116.2 116.1 holiday & additional levy
Slide 9: Australia Market
AUSTRALIA MARKET Changes in apartment unit value (Oct 2021 vs Oct 2020) • Broad recovery in prices across all capital cities, driven by strong domestic demand 23.20% • Prices supported by low interest rates & lack of advertised supply 14.10% 12.95% 13.55% • Reopening of borders in 2022 should revive
Slide 10: RM2.0 B FY2022 Sales Target
FY 2022 SALES TARGET Moving ahead RM2.0 B Sales target set for FY2022 45% higher than FY2021 Sales Achieved Focus on Cash Generation with aim to make further distributions to shareholders after setting aside a portion of the capital recouped from completed projects to be reinvested for future growth
Slide 11: Project Updates: EcoWorld-Ballymore
PROJECT UPDATES EcoWorld-Ballymore • All three projects fully completed by FY2022 • Key works remaining include: • Penthouse units in Embassy Gardens • Commercial block in London City Island • Target 100% sale of all units in the next 2 years • Substantial cash to be generated from sale of completed
Slide 12: Project Updates: EcoWorld London
PROJECT UPDATES EcoWorld London • All active phases completed by FY23 • Sales proceeds to fund future phases & potential acquisition of new development sites • Upcoming launches: • Kew Bridge (Phase 3 & 4) • Oxbow (Phase 4) • Focus on London mid-market OMS & BtR segments will not require substantial
Slide 13: Project Updates: Australia
PROJECT UPDATES Australia • West Village and Yarra One are fully completed • West Village is 93% sold while Yarra One is 67% as at 31 Oct 2021 • Aim to sell out all units by FY2022
Slide 14: Project Updates: ESG Initiatives
PROJECT UPDATES ESG INITIATIVES • Key achievements include: • Sustainable designs incorporated in building plans • 100% of construction waste of UK projects* diverted from landfill in FY2021 • Began tracking direct greenhouse gas emissions in FY2021 • 90% of EWL customers surveyed in 2020 said they
Slide 15: Conclusion
CONCLUSION • Property market in UK & Australia was challenging in FY2021 but FY2022 expected to be much better for sales especially in the UK • EcoWorld International is in relatively good position with most projects having entered a highly cash generative phase of the development lifecycle • Sales
Slide 16: Together EcoWorld | eCreate Tomorrow & Beyond
GETHER ECOWORLD | eCREATE MORROW & BEYOND
Slide 17: Sales Breakdown – 31 October 2021
SALES BREAKDOWN – 31 OCTOBER 2021 CUMULATIVE SALES EFFECTIVE FUTURE PROJECT OWNERSHIP GDV (MILLION) SALES VALUE (MILLION) (MILLION) REVENUE FY2015-2020 FY2021 (Restated) United Kingdom London City Island 75% £683 £596 £577 £19 £13 Embassy Gardens 75% £900 £594 £456 £139 £52 Wardian London 75% £569 £
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