Eastern & Oriental Bhd. · MYX:E&O
Eastern & Oriental Bhd — H1 FY2011 Earnings Presentation
17 slides from Eastern & Oriental Bhd's earnings presentation, Nov 29, 2010
Slide 1: Analyst Briefing: First Half Financial Results
ANALYST BRIEFING FIRST HALF FINANCIAL RESULTS (PERIOD ENDED 30 SEPTEMBER 2010) 29 November 2010 1
Slide 2: Financial Highlights
Financial Highlights 2
Slide 3: Segmental Analysis
Segmental Analysis Property Development Division Remains Key Earning Driver H1 FY2011 H1 FY2010 (Unaudited) (Audited) Investment & Investment & Others Others Hospitality & 1.2% Hospitality & 1.9% Lifestyle Lifestyle 19.1% 10.1% Property Property Development Development 79.7% 88.0% Revenue: RM164 mil
Slide 4: Revenue, Gross Profit and Gross Margin
Revenue, Gross Profit and Gross Margin H1 FY11 H1 FY10 Revenue* (RM'000) 164,417 261,271 Gross Profit* (RM'000) 72,752 76,489 Gross Margin 44.22% 29.27% • Higher revenue reported in H1 FY2010 mainly due to : • Disposal of stocks and non-strategic landbanks under the fund raising strategy in FY2010 •
Slide 5: Group Operating Expenses
Group Operating Expenses H1 FY11 H1 FY10 Administration Expenses* (RM'000) 21,780 22,796 Selling and Marketing Expenses* (RM'000) 5,005 4,276 Finance Cost* (RM'000) 13,965 10,998 Other Expenses* (RM'000) 6,993 6,291 Total Cost (RM'000) 47,743 44,360 % of Total Cost to Revenue 34.9% 19.8% • Increase
Slide 6: Overall Group Performance
Overall Group Performance RM’000 RM4,265 Slight decline in profit after tax reported for H1 ended 30 Sept 2010 reflective of : RM4,100 • Lower contribution from the property RM18,490 division on the back of lower revenue RM17,943 recognised for the period • Pre-opening expenses totaling RM4.1 millio
Slide 7: Balance Sheet Position
Balance Sheet Position As At As At 30 Sept 2009 30 Sept 2010 (RM’000) (RM’000) Cash and cash equivalents 237,608 491,426 Net Borrowings 666,090 333,761 Equity Attributable To Shareholders* 847,000 1,049,189 Net Gearing (times) 0.78 0.32 • With a significant improvement in cash & gearing position fro
Slide 8: Going Forward
Going Forward 8
Slide 9: Property Development – On a stronger footing to push ahead to the next cycle
Property Development – On a stronger footing to push ahead to the next cycle Est GDV Execution stage & Klang Valley (RM mil) upcoming • St Mary Residences • The Peak, Damansara Heights • Jalan Yap Kwan Seng 2.0 billion • Jalan Kia Peng / Conlay • Jalan Gallager, Bukit Tunku Seri Tanjung Pinang • Qua
Slide 10: Unbilled Sales Surpassed Peak Levels; On-Going Projects' Profit Recognition Still at Early Stage
Unbilled Sales Surpassed Peak Levels; On-Going Projects’ Profit Recognition Still at Early Stage As at As at 30 Sept 2009 30 Sept 2010 Unbilled sales (RM’000) 433,703 604,823 • Sales momentum continue to grow as a result of stronger buying sentiment in high-end segment Semi- Ariza St Mary Quayside P
Slide 11: Hospitality & Lifestyle
Hospitality & Lifestyle • Increased inventory with the proposed expansion plan of additional hotel rooms & new service suites • The E&O Group’s Lone Pine Hotel has been refurbished and expanded to 90 suites. Re-opened on 1 Nov 2010 • E&O Hotel Annexe – Adding 139 suites (to existing 100 suites) and
Slide 12: Next Cycle Game Plan
Next Cycle Game Plan Property Investment • Launch of Straits Quay, Penang island’s only seafront festive retail marina which will feature established retail and F&B outlets from Penang and beyond : Target Nov 2010 • First and only Tesco hypermarket on the northern region of Penang Island opening at
Slide 13: Building for the Future: Investment to Develop and Expand Our Assets
Building for the Future : Investment to Develop and Expand Our Assets A total of RM4.1 million for the 6 months period ended 30 Sept 2010 Hospitality & Lifestyle Property Investment Division Division Lone Pine E&O Hotel Straits Quay Tesco Hotel Annexe Retail “Impact of seed expenses to develop 4 mai
Slide 14: Hospitality & Lifestyle – The Delicious Group
Hospitality & Lifestyle – The Delicious Group “Increased stake to 100% ownership of Delicious Group; Part of E&O’s plan to expand its F&B business” • Currently operates seven outlets across Klang Valley • Opportunity to strengthen the brand presence in the local market • E&O plans to embark on an ex
Slide 15: Summary
Summary 15
Slide 16: E&O is on a strong platform to take advantage of future growth opportunities
“E&O in on a strong platform to take advantage of future growth opportunities and is expanding in all segments” • With a combined GDV of RM4 billion, E&O is set to Property execute current projects and up-coming launches Development Division • More than RM370 million profit to be recognised in the n
Slide 17: Thank You
Thank You EASTERN & ORIENTAL BERHAD Eastern & Oriental Berhad (555-k) Level 3A (Annexe), Menara Milenium, 8 Jalan Damanlela, Damansara Heights, 50490 Kuala Lumpur, Malaysia T 603 2095 6868 F 603 2095 9898 www.easternandoriental.com Disclaimer: The content of this presentation includes materials whic
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