Paramount Corp. Bhd. · MYX:PARAMON
Paramount Corp. Bhd — H1 2022 Earnings Presentation
38 slides from Paramount Corp. Bhd's earnings presentation, Aug 30, 2022
Slide 1: Investor Relations & Media Presentation 1H2022 Results
Investor Relations & Media Presentation 1H2022 Results 30 August 2022 1
Slide 2: Overview 1H2022
PARAMOUNT re SS Overview 1H2022
Slide 3: 1H2022 Highlights
1H2022 Highlights Revenue PBT Profit for the period RM370.5m RM30.2m RM21.5m YOY 33% YOY 44% YOY 94% Property Sales Properties Launched Average Take-Up Rate Unbilled Sales Debt to Total Interim Dividend Equity Ratio Note: ^ Represented the percentage of units sold for on going projects undertaken by
Slide 4: Gross Div Per Share & Payout Ratio
Gross Div Per Share & Payout Ratio Payout sen ratio 35.00 65% 70% 30.00 60% 51% 25.00 50% 40% 40% 38% 20.00 40% (property sector) 15.00 29.00 * 30% 15.6% 7.50 * 10.00 7.50 * 20% Market price @ 26 Aug 5.00 8.50 8.50 6.50 10% 2.5 3.0 68 sen - 2017 2018 2019 2020 2021 0% Closing Interim dividend FY22 p
Slide 5: Corporate Developments 2022
Corporate Developments 2022 Entry into E-Commerce Solutions (March 2022) - Seek new source of earnings & to future proof business Invested RM7.5m in Commerce.Asia (7.67%) Synergy with the Paramount group Business model scalable Malaysi for local and regional a growth 90% Strong outlook on e-commerce
Slide 6: Proposed Land Acquisition 2022
Proposed Land Acquisition 2022 June 2022 – Acquisition of 17.869 acres industrial land in Bukit Minyak, Penang - Shift into industrial development segment Purchase price RM29.5 million Land size 17.869 acres Land status/zoning Freehold/ Industrial Projected GDV (RM) RM127 million Description of 54 u
Slide 7: Proposed Land Acquisition 2022 (cont’d)
Proposed Land Acquisition 2022 (cont’d) July 2022 – Acquisition of 64.3 acres residential land in Sepang, Selangor - Leverage on existing presence in Greenwoods Salak Perdana Purchase price RM18.5 million Land size 64.3 acres Land status/zoning Freehold/ Residential Projected GDV (RM) RM261 million
Slide 8: Proposed Asset Monetisation 2022
Proposed Asset Monetisation 2022 July 2022 – Disposal of KDU DJ campus for RM60 million in cash - Monetisation of non-core assets to improve return on assets employed Selling price RM60.0 million Land size 2.66 acres Description of A 5-storey purpose- property built college building together with 1-
Slide 9: Awards and Industry Recognition
Awards and Industry Recognition All-Stars Award Family Friendly Close-to-Home Award (Highrise) Award Excellence Honours Top 26-50% by ESG Ratings amongst PLCs in FBM EMAS that have been assessed by FTSE Russell 9
Slide 10: Operational Review
PARAMOUNT PS __ ee —_ ~ Operational Review
Slide 11: Property Sales & Unbilled Sales
Property Sales & Unbilled Sales 38% y-o-y growth in 1H2022 sales; Unbilled sales at record high of RM1.2bn Q-o-Q Sales and unbilled sales 1H2022 Sales RM’ mil 1,400 Greenwoods Salak Kemuning Idaman & Perdana, Selangor Utropolis, Selangor Bukit 1248 2% 1% 1,200 Banyan, Kedah 1130 13% Berkeley Uptown,
Slide 12: On-going products – take up rate & launches
On-going products – take up rate & launches Encouraging take-up rate at 85% ; on-going GDV at RM2.5 bn# Take up 2H2022 Launched in 1H2022 rates Tentative Existing On-going As at 30 Launches Type of projects by GDV Locations June development subsidiaries RM’m GDV GDV Quarter 2022 RM’m %^ RM’m 138 - -
Slide 13: Co-labs Coworking & Scalable Malaysia
Co-labs Coworking & Scalable Malaysia Y-o-y improvement in overall occupancy rate for the coworking division Co-labs Coworking Work – play – rest Flexible packages 5 sizeable space in Productivity + Wellness in one place starting from daily pass Klang Valley Starling Plus Shah Alam 14% 30% Tropicana
Slide 14: Financial Review
PARAMOUNT ~ Financial Review
Slide 15: Financial Overview
Financial Overview Improved performance on the back of stronger quarterly results Revenue (RM’m) 1H2022 1H2021 Variance RM’000 RM’000 % 250 202 200 168 152 Revenue 370,481 279,255 +33 150 127 100 Operating profit b4 depreciation 51,359 40,426 +27 50 0 Depreciation (10,601) (9,511) +11 1Q 2Q 2020 202
Slide 16: Segmental Analysis
Segmental Analysis Improvements in revenue and PBT in all segments, particularly the property division Group Revenue Group PBT RM370.5m RM279.3m RM30.2m RM21.0m RM’m RM’m 33% 44% 300.0 40.0 250.0 30.0 200.0 20.0 150.0 10.0 100.0 0.0 50.0 -10.0 0.0 -20.0 1H2022 1H2021 1H2022 1H2021 Investment & Inves
Slide 17: Property Division
Property Division Improvement due to more on-going projects Yr on Yr The Atrium, Kuala Lumpur • Revenue RM361m 31% 12% Bukit Banyan, Kedah 15% • PBT RM39.4m 10% ATWATER, Selangor • PBT margin 11% -2% 18% Sekitar26, Selangor Revenue Utropolis Batu Kawan, Penang 18% 1% Improved financial performance
Slide 18: Coworking Division
Coworking Division Revenue improved 65% while LBT narrowed by 88% Yr on Yr Revenue 1H2022 • Revenue RM4.3m 65% • LBT RM0.3m 88% All 5 outlets recorded improvement in Scalable revenue on reopening of economy. Malaysia 18% Top 3 outlets in terms of revenue Co-labs contribution are Shah Alam, Tropi
Slide 19: Financial Position (30 June 2022)
Financial Position (30 June 2022) Strong balance sheet and liquidity position Shareholders’ Net current Debt to Total funds assets YOY Equity 98% ratio* Cash & bank Unbilled sales Net cash from balances operating activities * Total equity includes Private Debt Securities of RM249.0 m as at 30 June 2
Slide 20: Industry Overview
PARAMOUNT PS __ ee SS A Industry Overview
Slide 21: Property Sales 1Q2022
Property Sales 1Q2022 17% Y-o-Y growth in property sales volume Y-o-Y (Vol) 10% 22% 25% 36% 19% 17% Q-o-Q (Vol) -10% 6% 4% 3% 6% -5% Source: Property Market Report Q12022 by Napic JPPH 21
Slide 22: Unsold Vs Overhang 1Q2022 (residential properties)
Unsold Vs Overhang 1Q2022 (residential properties) Unsold under construction and overhang units increased Y-o-Y; incoming supply declined 175,065 180,000 Residential Property Incoming Supply 160,000 800,000 61,693 140,000 700,000 616,478 598,137 600,000 120,000 500,000 100,000 400,000 80,000 300,000
Slide 23: Strategic Plan
PARAMOUNT : Strategic Plan
Slide 24: 2022 and Beyond - Group
2022 and Beyond - Group Core Business Property development Land development Malaysia SEA 90% 10% Residential Industrial/ Commercial data centre Asset Monetisation / Recurring Income Recurring / rental income Associate co - Share of results Tertiary education real estate Pre-Tertiary Education Gr
Slide 25: 2022 & Beyond – Property Division
2022 & Beyond – Property Division 8 Landed 1 Residential Strengthening our Township Marketing and (30% of Revenue) Brand Image 7 2 Integrated Mixed Digitalization Development (70% of Revenue) Property Product Acquire New Standardisation Land Bank / 3 6 Regional Pursue JV 2 Industrial Expansion to de
Slide 26: 2022 Outlook
PARAMOUNT re 2022 Outlook
Slide 27: Outlook 2H2022
Outlook 2H2022 Outlook for 2H2022 is expected to surpass that of 1H2022 Growth in Malaysian Property launches for 2H2022 RM1.1bn (Sale for 6M2022: Economy RM425m) Population growth and household Future cashflow backed by unbilled sales (RM1.2bn) formation Weakening purchasing Protect profit margin t
Slide 28: 2H2022 Pipeline Launches
2H2022 Pipeline Launches RM1.1bn launches in 2H2022; 19% from existing projects 3Q2022 3Q2022 3Q2022 4Q2022 High-rise residential Landed residential TOD mixed development Townhouse RM393m Arinna, Kemuning Utama Sejati Lakeside 2 The Atera Greenwoods Salak Shah Alam Cyberjaya Petaling Jaya Perdana, S
Slide 29: Arinna, Kemuning Utama (Shah Alam)
Selangor Arinna, Kemuning Utama (Shah Alam) High Rise Residential To KL To Shah Alam / / Federal Suban Highway g Subject Site Kota Kemuning To Cyberjaya / SKVE Artist Impression Unique selling points Phase 1 Launching in 3Q2022 6.02 acre of freehold land for high rise development at Kemuning Utama
Slide 30: Sejati Lakeside 2 – Persiaran Bestari (Cyberjaya)
Selangor Sejati Lakeside 2 – Persiaran Bestari (Cyberjaya) Landed Residential Subject Site Artist Impression Unique selling points Phase 1 Launching in 3Q2022 234 units of semi-detached homes on 32.7 acres of freehold land by a 45-acre lake Located within the Cyberjaya Flagship Zone (CFZ), it is
Slide 31: The Atera, Petaling Jaya
Selangor The Atera, Petaling Jaya Transit Oriented Mixed Development Artist Impression Artist Impression Unique selling points Phase 1 Tower 1 Launching in 3Q 2022 A GreenRE Bronze residences comprising approximately 2100 residential units housed in three towers and 9 retail lots on a 9.66 acres l
Slide 32: Q&A
Q&A Jeffrey Chew Sun Teong Foong Poh Seng Group Chief Executive Officer Chief Financial Officer Benjamin Teo Chee Siew Pin Deputy Group Chief Executive Officer Chief Executive Officer, Paramount Property 32
Slide 33: Appendices
PARAMOUNT SS A 3 Appendices
Slide 34: Diversified Landbank & GDV (30 June 2022)
Diversified Landbank & GDV (30 June 2022) Remaining Gross Development Period Remaining Undeveloped Project Status GDV* Lands (RM’m) Start End (Acres) Northern Bukit Banyan & BLM, Sungai Petani On-going 113.0 460 2012 2027 Batu Kawan, Penang On-going 19.3 1,610 2016 2030 Kemuning Utama, Shah Alam On-
Slide 35: Inventories (30 June 2022)
Inventories (30 June 2022) Inventories balances down 15% Vs 31 Dec 2021; comprising 100% commercial properties 30 June 31 Dec Projects 2022 2021 Details As at Cost Cost Completed properties RM’m RM’m RM61m 37 41 • Stratified commercial lots Leased to Co-labs Coworking (carrying Commercial value abou
Slide 36: Group Debt/Total Equity (D/E) Ratio
Group Debt/Total Equity (D/E) Ratio 30 June 2022 31 Dec 2021 (Unaudited) (Audited) RM’m RM’m Borrowings 894.5 963.1 Cash & bank balances 177.8 178.4 Total equity* 1,684.0 1,690.5 Gross D/E ratio (times) 0.53 0.57 Net D/E ratio (times) 0.43 0.46 Weighted average interest rate (%) - floating 3.75 3.51
Slide 37: Disclaimer
Disclaimer Statement Regarding Unaudited Financial Information The unaudited financial information set forth above is preliminary and subject to adjustments and modifications. Disclaimer on Forward-Looking Statements This presentation may contain forward-looking statements that involve risks and unc
Slide 38: Thank You
Thank You www.pcb.my 38
Paramount Corporation Berhad — H1 2022 Earnings Presentation on 6ix