S P Setia Bhd. · MYX:SPSETIA
S P Setia Bhd — Investor Presentation (March 2010)
38 slides from S P Setia Bhd's investor presentation, March 2010
Slide 1: Corporate Presentation
Corporate Presentation March 2010 1
Slide 2: Overview
2 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
Slide 3: Geographical Positioning
3 GEOGRAPHICAL POSITIONING • Northern Region • Setia Pearl Island • Setia Vista • Brook Road Land • Sungai Ara Land • Central Region • Setia Alam • Setia Eco Park • Setia Putrajaya • Setia Sky Residences • Setia Walk • Setia City • Kenny Hills Grande • KL EcoCity • Setia Nexus 1 & 2 • Southern Regio
Slide 4: Northern Region
4 NORTHERN REGION Setia Vista Brook Road Quick Facts Setia Pearl Island Number of Total Remaining Total Remaining Active Penang Penang Penang Penang Penang Projects Landbank Landbank GDV GDV* 3 165 acres 78 acres RM1.41bn RM0.85bn 4 *As at 28 February 2010
Slide 5: Central Region
5 CENTRAL REGION Setia Walk Setia Alam Setia City Eco Park Setia Sky KL EcoCity 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* 6 3,587 acres 1,750 acres RM22.53bn RM16.82bn 5
Slide 6: Southern Region
6 SOUTHERN REGION Bukit Indah 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 4 4,092 acres 1,179 acres RM9.3bn RM4.4bn 6 *As at 28 February 2010
Slide 7: Eastern Region
7 EASTERN REGION Quick Facts Number of Active Sabah Projects 1 Total Sabah Landbank 42 acres Remaining Sabah Landbank 42 acres Total Sabah SUBJECT GDV LAND RM1.0bn Remaining Sabah GDV RM1.0bn 7 *As at 28 February 2010
Slide 8: South Vietnam
8 SOUTH VIETNAM Eco Lakes, Binh Duong Eco Xanh, D9, HCMC (Pending JVA) Lai Thieu Land, Binh Duong Quick Facts Number of Total Remaining Total Remaining Active Vietnam Vietnam Vietnam Vietnam GDV Vietnam GDV* Projects Landbank Landbank US$1.0bn US$1.0bn 2 585 acres 543 acres (RM3.6bn) (RM3.5bn) 8 *As
Slide 9: Landed Residential: Core Brands
9 LANDED RESIDENTIAL 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: Semi-Ds & te
Slide 10: Setia Brand
10 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 10
Slide 11: Eco Brand
11 ECO BRAND Eco Park, Shah Alam Eco Park, Shah Alam Setia Eco Gardens, Johor Setia Eco Gardens, Johor 11
Slide 12: Duta Brand
12 DUTA BRAND Duta Nusantara, Sri Hartamas Duta Tropika, Sri Hartamas Setia Hills, Ampang Kenny Hills Grande, Bukit Tunku 12
Slide 13: Growth Drivers
13 GROWTH DRIVERS SKY RESIDENCES BRAND CONCEPT: Hotel-style Living PRODUCT: High-rise, High-end Residential LOCATION: Central RATIONALE: Complete Residential Range Contributed 10% of FY09 New Sales COMMERCIAL RANGE CONCEPT: Integrated Commercial Hubs PRODUCT: Retail; Office & Residential LOCATION: E
Slide 14: Profit & Loss
14 PROFIT & LOSS Year Ended --------Period Ended-------- (RM million) 31.10.09 31.01.09^ 31.01.10 Revenue 1,408.4 297.1 363.9 Gross profit 304.3 69.0 82.7 Other operating income 17.4 3.1 3.2 Sales, Admin & general exp (118.6) (29.1) (36.4) Profit from operations 203.0 42.9 49.5 Profit from investing
Slide 15: Balance Sheet
15 BALANCE SHEET -------Year Ended------- Period Ended Key Items 31.10.08^ 31.10.09 31.01.10 No of Ordinary Shares 1,016.7 1,016.8 1,016.8 Share Capital (RM m) 762.5 762.6 762.6 Shareholders' Funds (RM m) 1,975.3 2,037.2 2,078.1 NA per share (RM) 1.94 2.00 2.04 Total Cash (RM m) 622.7 885.5 699.2 To
Slide 16: 2010: Back on Track
16 2010: BACK ON TRACK Demand remains robust Monthly Sales (RM m) 350 300 250 200 150 Pre-crisis Average RM126m 100 50 0 Nov-07 Feb-08 May-08 Aug-08 Nov-08 Feb-09 May-09 Aug-09 Nov-09 Feb-10 Monthly sales continue to hold up at pre-crisis levels despite 16 withdrawal of 5/95 programme in July ‘09
Slide 17: FY2010 Sales as at 28 Feb 2010
17 FY2010 SALES AS AT 28 FEB 2010 Central Region Launched Units Sold Units Sales Value (RM m) Setia Alam 254 657 238 Setia Eco Park 112 131 197 Setia Sky Residences 211 123 121 Sub-total Central Region 577 911 556 Southern Region Bukit Indah 25 191 71 Setia Indah 117 104 32 Setia Tropika 122 116 48
Slide 18: 2010: Back on Track - Future Progress Billings
18 2010: BACK ON TRACK Historic High Sales & Future Billings underpins return to Growth 1,800 1,400 Future Progress Billings (RM '000) 1,223 1,600 1,200 1,106 1,400 New Sales (RM '000) 980 1,000 1,200 875 862 1,000 802 800 571 800 1,650 600 1,413 1,403 600 1,226 1,234 1,060 400 400 519 200 200 0 0 F
Slide 19: Progress Billings Status
19 PROGRESS BILLINGS STATUS Sales Progress Future Project Location Effective Secured Billings Progress (All figures in RM m) Stake @ 28.2.2010 @ 31.10.2009 Billings Central Region Setia Alam 100% 1,980 1,556 423 Setia Walk 100% 399 90 309 Setia Hills, Ampang 100% 120 112 8 Setia Sky Residences 70% 2
Slide 20: Annual Sales
20 2010: BACK ON TRACK Resilient Core Regions Sales support expansion into New Markets 900 800 700 Annual Sales (RM m) 600 500 400 300 200 100 0 FY04 FY05 FY06 FY07 FY08 FY09 Southern Region Central Region^ Northern Region International 20 ^Excludes Setia Putrajaya
Slide 21: 2010: Back on Track - Long-Term Growth Strategy
21 2010: BACK ON TRACK Executing Long-Term Growth Strategy Period 1996 - 2007 2008 – 2009 2010 2011 onwards Growth Laying the Building Establishing Reaping Benefits Phases Foundation Capacity Growth New markets Deepen share of Target to improve Growth penetrated via new & traditional yields through
Slide 22: Plans for 2010
22 PLANS FOR 2010 Sales Target and Strategy FY10 sales target increased by 25% to RM2.0 billion on the back of strong 1QFY10 sales of RM608 underpinned by the Best for the Best Programme: • Introduced in October 2009 • Main emphasis on the Group’s unique deliverables; master planning; quality cont
Slide 23: Plans for 2010
23 PLANS FOR 2010 Sales Target and Strategy Strategic focus: • Traditional Markets:- Enhancing overall value of development & setting new pricing benchmarks through continued value creation (e.g. provision of Setia City Mall, Tesco, Setia City Connect) to improve returns i.e. GDV / margin enhancem
Slide 24: Plans for 2010: Reflections Condominium
24 PLANS FOR 2010 Planned Launch – Reflections Condominium, Setia Pearl Island Quick Facts Building Height 25 Storeys Starting Price RM330 per sq ft Total Number of Units 317 Built-Ups 1,077 to 1,510 sq ft 24
Slide 25: Plans for 2010: Setia Sky Residences Phase 2
25 PLANS FOR 2010 Planned Launch – Phase 2 Setia Sky Residences, KL Phase 2 Back View Front View 25
Slide 26: New Project: Brooke Residences, Penang
26 PLANS FOR 2010 New Project – Brooke Residences, Penang Quick Facts Land Area 2 acres Land Consideration RM23 million Land Consideration psf RM250 Brand Duta Total Units 11 Bungalows Est. GDV RM55 million 26
Slide 27: New Project: Aeropod, Sabah
27 PLANS FOR 2010 New Project – Aeropod, Sabah Quick Facts Land Area 42 acres Land Consideration RM110 million Land Consideration psf RM60.40 5km Product Type Mixed Commercial Est. GDV RM1 billion 27
Slide 28: Lai Thieu Land, Vietnam
28 INTERNATIONAL EXPANSION Lai Thieu Land, Vietnam Signing Ceremony on Oct ’09 for Investment Certificate already 28 3rd Project in Vietnam obtained on March ‘10
Slide 29: New Project: Lai Thieu Land, Vietnam
29 INTERNATIONAL EXPANSION New Project – Lai Thieu Land, Vietnam Quick Facts Land Area 26.79 acres Vietnam Singapore Land Consideration Song Be Golf Industrial Park Club Phase 1 US$16.26 million Land Consideration psf US$13.93 Project Type Mixed Development Est. GDV US$250 million Locational Advanta
Slide 30: New Project: Lai Thieu Land, Vietnam
30 INTERNATIONAL EXPANSION New Project – Lai Thieu Land, Vietnam In-Principle Agreement signed with Becamex IDC (LUR holder) on 26 October 2009 & Investment Certificate obtained on 10 March 2010 Land area: 26.79 acres Charter capital: US$6.5 million Value of LUR: US$16.26 million* (RM57m)
Slide 31: Hangzhou Land, China
31 INTERNATIONAL EXPANSION Hangzhou Land, China Signing Ceremony on Oct ’09 31 for Maiden Project in China
Slide 32: New Project: Hangzhou Land, China
32 INTERNATIONAL EXPANSION New Project – Hangzhou Land, China Quick Facts Land Area 5 acres – 1st Phase Land Consideration US$17 million Land Consideration psf US$80 Project Type Mixed Development Est. GDV US$146 million Locational advantages Adjacent to Qianjiang Century CBD (Core future CBD of Han
Slide 33: New Project: Hangzhou Land, China
33 INTERNATIONAL EXPANSION New Project – Hangzhou Land, China Co-operation Agreement signed on 4 June 2009 with Hangzhou Ju Shen Construction Engineering Ltd Land area: 25 acres (1st Phase Land: 5 acres) Sino-Foreign Joint Venture Contract signed on 28 October 2009 to develop 1st Phase Land:-
Slide 34: Landbank
34 LANDBANK Landbank (acres) Land Cost Branding Project Central Region Total Undeveloped per sq ft Strategies Life Cycle Setia Alam 2,290 1,026 RM3.49 Setia Infant/Growth Setia Eco Park 798 408 RM8.00 Eco Infant/Growth Putrajaya - P15 275 135 Setia Infant Setia Sky Residences 6 3 RM300 Residences In
Slide 35: Landbank: Analysis by Brand Category
35 LANDBANK Analysis by Brand Category By Landbank Size By GDV Value Total = 3,588 acres Total = RM28bn 14% 14% 8% 40% 0% 11% 28% 67% 5% 13% Setia & Setia-Eco Eco Duta & Sky Residences Commercial International 35
Slide 36: Conclusion: Prospects for 2010
36 CONCLUSION Prospects for 2010 2009: Record high sales of RM1.6 billion and growth plans executed despite financial crisis – cash position strengthened and groundwork laid for expansion in earnings base 2010: FY10 sales target increased by 25% to RM2.0bn on the back of strong 1QFY10 sales of R
Slide 37: Conclusion: 2011 and Beyond
37 CONCLUSION Fortune Favours the Brave – 2011 and beyond 2010 will continue to set the stage for management’s targeted return to strong growth by 2011. Key catalysts include: KL EcoCity – Target launch by October 2010 New projects to be launched in 2010: Brook Residences & Aeropod Preparing L
Slide 38: Thank You
38 livelearnworkplay Thank You @ Builder of Distinction Setia SP SETIA BHD GROUP