Eco World Development Group Bhd. · MYX:ECOWLD
Eco World Development Group Bhd — EcoWorld Malaysia — Investor Presentation (June 2024)
19 slides from Eco World Development Group Bhd's investor presentation, June 2024
Slide 1: EcoWorld Malaysia Corporate Presentation – 2Q FY2024
ECOWORLD MALAYSIA CORPORATE PRESENTATION – 2Q FY2024 JUNE 2024 Eco Townships Eco Rise Eco Hubs Eco Business Parks
Slide 2: Sales Update
SALES UPDATE MAY 2024 - 7 MONTHS
Slide 3: FY2024 Sales Momentum Sustained
FY2024 SALES MOMENTUM SUSTAINED 7 MONTH SALES AS AT 31 MAY 2024 SALES (RM’MIL) 4 mths 3 mths 2,184 62% 1,259 925 of FY2024 RM3.5 B Nov 23 - Feb 24 Mar - May 24 FY2024 (7 mths) Sales Target Achieved
Slide 4: Sales by Region
SALES BY REGION HIGHEST SALES CONTRIBUTION FROM ECO SOUTH RM 240 m Eco South recorded RM1.3 billion – 61% of the 11% Group’s YTD sales & 84% of FY2023 sales from RM 611 m Iskandar Malaysia 28% 5 matured + 1 upcoming townships & 4 industrial Sales By parks to sustain strong growth going forward Regio
Slide 5: Sales by Revenue Pillar
SALES BY REVENUE PILLAR ECO TOWNSHIPS THE LARGEST CONTRIBUTOR Eco Townships contributed RM855 million with 90% sales RM 420 m from upgrader homes priced above RM650,000 19% Eco Rise contributed RM674 million with 1,400 units of RM 855 m duduk apartments sold - 91% of Eco Rise YTD sales RM 235 m Sale
Slide 6: Eco Rise – Accelerated Growth Ahead
ECO RISE – ACCELERATED GROWTH AHEAD 7 SO FAR + MORE TO COME! 7 2020 Sold Out | VP in Jan 2024 Sold Out | VP in Feb 2024 launched since 2020 2,688 completed & delivered 3,614 under construction 2023 2024 Upcoming NEW + Upcoming Launches • Below RM500k • 900 psf | 1,000 psf • Semi-furnished • Situated
Slide 7: Eco Business Parks 3-Pronged Strategy
ECO BUSINESS PARKS 3-PRONGED STRATEGY WELL-POSITIONED TO FURTHER EXPAND INDUSTRIAL MARKET SHARE Off-plan sales Industrial Land + BTS Industrial Land + Infra Targeting large global MNCs • above 20 acres industrial land with Targeting local SMEs infrastructure completed • >1,000 operating across 4 bus
Slide 8: Industrial Land Sale – EBP VI
INDUSTRIAL LAND SALE – EBP VI MICROSOFT ACQUIRES 123 ACRES FOR DATA CENTRE LAND SIZE 123.14 acres CONSIDERATION RM402.3 million | RM75 psf ` ü First transaction for EBP VI Location Kulai, Iskandar Malaysia ü Quick turnaround of project Land Size 403. 78 acres (<6 months from completion) Tenure Freeh
Slide 9: Financial Highlights
FINANCIAL HIGHLIGHTS 2Q FY2024
Slide 10: Financial Updates: 2Q FY2024 Financials
FINANCIAL UPDATES 2Q FY2024 FINANCIALS Revenue Gross Profit 32% 37% 600 RM 556 mil 160 RM 147 mil Malaysia JVs RM13 mil RM 421 mil 140 500 RM 108 mil Due to lower contribution from phases near 120 400 completion and lower initial profit recognition 100 from recently launched duduk phases (Eco 300 80
Slide 11: Financial Updates
FINANCIAL UPDATES 2Q FY2024 FINANCIALS 14% 12% 17% 80 RM 71 mil 80 RM 70 mil 160 RM 140 mil RM 62 mil RM 63 mil RM 120 mil 70 70 140 60 60 120 50 50 100 40 40 80 30 30 60 20 20 40 10 10 20 - - - 2Q FY23 2Q FY24 2Q FY23 2Q FY24 YTD FY23 YTD FY24 PAT (M’sian Operations) excluding Overall PAT increased
Slide 12: Investment in EcoWorld International – Dividend Distribution
29% INVESTMENT IN ECOWORLD INTERNATIONAL DIVIDEND DISTRIBUTION MODE TO CONTINUE IN FY2024 Sales Recorded (May 2024) RM433 mil • Distributed RM936 mil in dividends FY2023 • EcoWorld Malaysia’s share of FY2023 dividends received = RM253 mil • Target to sell out remaining completed stocks & distribute
Slide 13: Future Revenue
FUTURE REVENUE AS AT 31 MAY 2024 EcoWorld Malaysia Future revenue from locked-in sales RM3.98 B RM4.03 billion + (RM3.88 billion as at 31 Jan 2024) EcoWorld This provides: International 1) Clear near & mid-term earnings visibility RM0.05 B 2) Strong cash-flow certainty
Slide 14: Strong Balance Sheet
STRONG BALANCE SHEET TOTAL BORROWINGS & CASH BALANCES Total Borrowings Total Cash & Bank Balances (RM’mil) (RM’mil) 3,317 1,440 2,880 2,805 1,336 1,357 2,541 2,505 2,622 1,170 785 456 FY20 FY21 FY22 FY23 Jan 24 Apr 24 FY20 FY21 FY22 FY23 Jan 24 Apr 24 Balance sheet continues to strengthen Bank borro
Slide 15: Strong Balance Sheet + Healthy Cashflow
STRONG BALANCE SHEET + HEALTHY CASHFLOW LOW GEARING Net Cashflow from Operating Activities Net Gearing (RM’Mil) (times) 3.4x YTD PAT of RM140 million 0.62 95% higher 470 0.44 0.31 0.28 241 0.25 0.24 Apr 23 Apr 24 FY20 FY21 FY22 FY23 Jan 24 Apr 24 • Strong cash flow generated from operating activitie
Slide 16: Commitment to Dividend Payment
COMMITMENT TO DIVIDEND PAYMENT FY2024 INTERIM DIVIDEND 2 sen Interim dividend 1Q 2020 - Dividend Per Share 2021 - 2022 - 2023 - 2024 - declared 2Q - 2.00 2.00 2.00 2.00 3Q - - 1.00 2.00 Committed to continue 4Q 2.00 2.00 2.00 2.00 sustaining good Total 2.00 4.00 5.00 6.00 dividends to shareholders
Slide 17: Landbanking & Future Development
LANDBANKING & FUTURE DEVELOPMENT REMAINING LANDBANK AS AT 31 MAY 2024 Eco North 195 acres 6% FY2023 FY2024 + 411 ACRES + 240 ACRES Eco South 3,426 acres Eco Central 1,529 acres Remaining 1,702 acres 50% 44% Landbank seeking to further increase Eco Eco Eco Eco Future Townships Rise Hubs Business Park
Slide 18: FY2024 Sales Target
FY2024 SALES TARGET STRONG CASH GENERATION + SUSTAINABLE GROWTH Including sale to Microsoft target 74% achieved RM3.5 B Sales target for FY2024 Continuing to focus on improving returns via higher margin products or higher yield per sq ft of land developed to sustain good dividends to shareholders +
Slide 19: Thank You
THANK YOU ECOWORLD
EcoWorld Malaysia — Investor Presentation (June 2024) on 6ix