S P Setia Bhd. · MYX:SPSETIA
S P Setia Bhd — Investor Presentation (October 2009)
40 slides from S P Setia Bhd's investor presentation, October 2009
Slide 1: Corporate Presentation
Corporate Presentation October 2009
Slide 2: S P Setia Overview
S P SETIA Overview Leading residential property developer in Malaysia with commercial development & overseas expansion driving next growth phase Infrastructure & construction arm Wood-based manufacturing Incorporated in 1974, and listed on Bursa Malaysia on 12 April 1993 As at 31 October 2
Slide 3: Geographical Positioning
GEOGRAPHICAL POSITIONING • Northern Region • Setia Pearl Island • Setia Vista, Penang • Setia View, Penang • Central Region • Pusat Bandar Puchong, Puchong • Precincts 9 & 15, Putrajaya • Duta Nusantara, Sri Hartamas • Duta Tropika, Sri Hartamas • Setia Alam, Shah Alam • Setia Eco Park, Shah Alam •
Slide 4: Northern Region – Penang
NORTHERN REGION – PENANG Setia Vista Setia View Quick Facts Setia Pearl Island Number of Total Remaining Total Remaining Active Penang Penang Penang Penang Penang Projects Landbank Landbank GDV GDV* 3 179 acres 132 acres RM1.35bn RM0.85bn *As at 30 September 2009 Page 4
Slide 5: Central Region – Klang Valley
CENTRAL REGION – KLANG VALLEY Setia Walk Setia Alam Setia City Eco Park Kenny Hills Grande Setia Sky Residences Quick Facts Number of Total Klang Remaining Total Klang Remaining Active Klang Valley Klang Valley Valley GDV Klang Valley Valley Projects Landbank Landbank GDV* 8 3,563 acres 1,867 acres
Slide 6: Southern Region – Johor
SOUTHERN REGION – JOHOR Bukit Indah Setia Eco City Setia Indah Setia Tropika SINGAPORE Quick Facts Setia Eco Gardens Number of Total Remaining Total Remaining Active Johor Johor Johor Johor GDV Johor GDV* Projects Landbank Landbank 5 4,092 acres 1,417 acres RM9.3bn RM4.9bn *As at 30 September 2009 P
Slide 7: Eastern Region – Kota Kinabalu
EASTERN REGION – KOTA KINABALU Quick Facts Number of Active Sabah Projects 1 Total Sabah Landbank 42 acres Remaining Sabah Landbank 42 acres Total Sabah GDV RM1.0bn Remaining Sabah GDV RM1.0bn *As at 30 September 2009 Page 7
Slide 8: South Vietnam
SOUTH VIETNAM Eco Lakes @ My Phuoc Eco Xanh Quick Facts (Pending JVA) Number of Total Remaining Total Remaining Active Vietnam Vietnam Vietnam Vietnam GDV Vietnam GDV* Projects Landbank Landbank 1 558 acres 558 acres RM2.7bn RM2.7bn *As at 30 September 2009 Page 8
Slide 9: Landed Residential Development
LANDED RESIDENTIAL DEVELOPMENT 3 Core Landed Residential Brands SETIA BRAND ECO BRAND DUTA BRAND CONCEPT: Mixed Township CONCEPT: Eco-friendly Project CONCEPT: Niche Development TARGET: Mass Market TARGET: Upgraders TARGET: High-end PRODUCT: Mixed Residential PRODUCT: Semi-Ds, Bungalows; PRODUCT: Se
Slide 10: Setia Brand
SETIA BRAND Pusat Bandar Puchong Bukit Indah, Johor Setia Indah, Johor Putrajaya Setia Alam, Shah Alam Setia Tropika, Johor Setia Pearl Island, Penang Setia Vista, Penang Putrajaya P15 Page 10
Slide 11: Eco Brand
ECO BRAND Eco Park, Shah Alam Eco Park, Shah Alam Setia Eco Gardens, Johor Setia Eco Gardens, Johor Page 11
Slide 12: Duta Brand
DUTA BRAND Duta Nusantara, Sri Hartamas Duta Tropika, Sri Hartamas Setia Hills, Ampang Kenny Hills Grande, Bukit Tunku Page 12
Slide 13: Growth Drivers
GROWTH DRIVERS SKY RESIDENCES BRAND CONCEPT: Hotel-style Living PRODUCT: High-rise, High-end Residential LOCATION: Central RATIONALE: Complete Residential Range COMMERCIAL RANGE CONCEPT: Integrated Commercial Hubs PRODUCT: Retail; Office & Residential LOCATION: Existing Townships & Established sites
Slide 14: Summary of Sales
SUMMARY OF SALES FY2009 Sales as at 30 September 2009 Project Launched Sold Sales Value Units Units RM'mil Setia Alam 550 631 263 Setia Sky Residences 211 188 166 Setia Walk, Pusat Bandar Puchong 299 234 86 Setia Hills, Ampang 0 2 5 Bukit Indah Johor 742 483 176 Setia Indah Johor 139 283 86 Setia Tr
Slide 15: Summary of Sales: YTD Sales Performance
SUMMARY OF SALES YTD Sales Performance Global financial crisis negatively impacted domestic consumer sentiments & led to weak sales in 1Q FY09 of RM102m Introduction of 5/95 Home Loan Package (19 Jan ’09 to 19 July ’09) to capture sales from buyers with capacity to purchase & looking for ‘good d
Slide 16: FY09 Monthly Sales Performance
FY09 MONTHLY SALES PERFORMANCE Comparison of FY08 & FY09 Monthly Sales Performance Monthly Sales (RM m) 300 250 200 150 100 50 0 Nov Dec Jan Feb Mac Apr May Jun Jul Aug Sept FY08 FY09 During 5/95 promotional period monthly sales averaged RM190m – a new sales performance benchmark Page 16
Slide 17: Progress Billings Status
PROGRESS BILLINGS STATUS Sales Progress Future Project Location Secured Billings Progress @ 30.09.2009 @ 31.10.2008 Billings RM'mil RM'mil RM'mil Setia Alam 1,723 1,213 510 Setia Hills, Ampang 120 95 25 Setia Sky Residences* 116 - 116 Setia Walk, Pusat Bandar Puchong 388 44 344 Bukit Indah Johor 2,1
Slide 18: Profit & Loss
PROFIT & LOSS Year Ended ------Period Ended----- (RM' million) 31.10.08 31.07.08 31.07.09 Revenue 1,328.3 907.6 887.5 Gross profit 351.5 248.6 192.7 Other operating income 13.0 8.7 8.9 Sales, Admin& general exp (125.6) (89.2) (75.2) Profit from operations 239.0 168.1 126.3 Profit from investing acti
Slide 19: Balance Sheet
BALANCE SHEET ------ Year Ended ------ Period Ended Key Items 31.10.07 31.10.08 31.07.09 No of Ordinary Shares ^ 672.6 1,016.7 1,016.8 Share Capital (RM’mil) 504.4 762.5 762.6 Shareholders’ Funds (RM’mil) 1,840.9 1,975.3 2,016. 8 NTA per share (RM) 2.74 1.94 1.98 Total Cash (RM’mil) 404.9 592.8 640.
Slide 20: Strategic Landbank
STRATEGIC LANDBANK Landbank (acres) Land Cost Branding Project Central Region Total Undeveloped (RM psf) Strategies Life Cycle Setia Alam 2,290 1,104 3.49 Setia Infant/Growth Setia Eco Park 798 459 8.00 Eco Infant/Growth Putrajaya - P15 275 135 Setia Planning Kenny Hills Grande 6 6 273.33 Duta Plann
Slide 21: Strategic Landbank: Analysis by Brand Category
STRATEGIC LANDBANK Analysis by Brand Category 77% of existing Malaysian 67% landbank under core “Setia” landed residential township brand All except 42 acres of land in 11% Malaysia fully paid for 1% 7% 14% overseas landbank 14% secured on a develop & pay Setia & Setia-Eco Eco basis (Setia’s c
Slide 22: Robust Demand
ROBUST DEMAND Analysis of Product Launches (Units) under the Setia & Eco brands Project 31 Sept ’08 31 Sept ‘09 Setia Vista 0 100 Setia Pearl Island 60 238 Setia Alam 463 550 Bukit Indah Johor 278 742 Setia Indah Johor 0 139 Setia Tropika 511 209 Setia Eco Gardens 514 369 Setia Eco Park 96 197 TOTAL
Slide 23: How Did We Beat Sales Target?
HOW DID WE BEAT SALES TARGET? Macro Factors Job Stability – retrenchments limited to selected sectors High Household Savings – provides buffer/ comfort factor Low Interest Rate Regime – redeployment of household savings Strong Branding Maintained visibility & strong corporate ethos throughou
Slide 24: Job Stability
JOB STABILITY 90,000 80,000 Annual Retrenchments 70,000 60,000 50,000 40,000 30,000 20,000 10,000 0 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 YTD- Sept Job losses no where near Asian Financial Crisis levels Source: Bank Negara Malaysia; CEIC & Ministry of Human Resources Page
Slide 25: High Savings
HIGH SAVINGS 84,000 14.00% Individual Savings (LHS) 12.00% Real Savings Rates (RHS) 82,000 YoY Growth Individual Savings (RHS) 10.00% 8.00% 80,000 6.00% 78,000 4.00% RM million 2.00% 76,000 0.00% 74,000 -2.00% -4.00% 72,000 -6.00% 70,000 -8.00% Jan- Feb- Mar- Apr- May- Jun- Jul- Aug- Sep- Oct- Nov-
Slide 26: Low Interest Rates
LOW INTEREST RATES 250,000 10.00% Indiv idual Fixed Deposit (LHS) Real 12 month FD rates (RHS) 8.00% YoY Growth Individual Fixed Deposit (RHS) 245,000 6.00% 240,000 4.00% RM million 235,000 2.00% 0.00% 230,000 -2.00% 225,000 -4.00% 220,000 -6.00% Jan- Feb- Mar- Apr- May- Jun- Jul-08 Aug- Sep- Oct- N
Slide 27: Strong Branding
STRONG BRANDING Mamma Mia! - December 2008 Page 27
Slide 28: Strong Branding
STRONG BRANDING Launch of 5/95 Home Loan Package - January 2009 Page 28
Slide 29: Strong Branding
STRONG BRANDING Setia Eco Gardens, Johor - Another winner in the S P Setia stable! Winner of Master Plan Development FIABCI Prix d’Excellence Award 2009 Winner of Master Plan Development FIABCI Malaysia Property Award 2008 Page 29
Slide 30: Strong Branding
STRONG BRANDING Corporate Social Responsibility - World Environment Day June 09 Page 30
Slide 31: Back on Track
BACK ON TRACK High-rise aspirations Setia Sky Residences – show units unveiled; strong demand for units in 1st tower Commercial aspirations Setia Walk Phase 2 – maiden launch of service apartments well taken-up Setia City – RM315m loan facility signed – 1st shopping mall financed since the adv
Slide 32: Back on Track
BACK ON TRACK Setia Sky Residences show units unveiled on 11 July ‘09 Page 32
Slide 33: Back on Track
BACK ON TRACK Setia Walk Galleria Opened, Service Apartments Launched Page 33
Slide 34: Back on Track
BACK ON TRACK Signing of RM315 facility for Setia City Mall Page 34
Slide 35: Back on Track
BACK ON TRACK Retail Mall with Lend Lease to support premium pricing in Setia Alam & Setia Eco Park Target to commence construction before year end Page 35
Slide 36: Back on Track
BACK ON TRACK ‘Seeing is Believing’ Campaign – EcoLakes, Vietnam Page 36
Slide 37: Back on Track
BACK ON TRACK ‘Seeing is Believing’ Campaign – EcoLakes, Vietnam Page 37
Slide 38: Back on Track
BACK ON TRACK MoU with Hangzhou Ju Shen to Kickstart Entry into China Page 38
Slide 39: Conclusion
CONCLUSION Plans & targets for FY2009 Sales target of RM1.1 billion in FY2009 9 Already exceeded by 35% Shift in earnings profile to continue as we transition from a high volume & margin landed property base to integrated development with lower margins but yield higher absolute profit per acre 9
Slide 40: Thank You
THANK YOU