Sime Darby Property Bhd. · MYX:SIMEPROP
Sime Darby Property Bhd — 9MFY2020 Earnings Presentation
26 slides from Sime Darby Property Bhd's earnings presentation, Nov 26, 2020
Slide 1: Results Announcement for the Third Quarter Ended 30 September 2020
Results Announcement for the Third Quarter Ended 30 September 2020 Financial Year Ending 31 December 2020 26 November 2020
Slide 2: Table of Contents
Table of Contents Title Page 1. 9MFY2020 Key Highlights 3 2. Financial Performance for 3QFY2020 and 9MFY2020 4 -10 3. Operational Performance for 9MFY2020 11 -15 4. Strategy Moving Forward 16 – 19 5. Investment Proposition 20 – 21 6. Appendix 23 - 26 Results Announcement for the Third Quarter Ended
Slide 3: 9MFY2020 Key Highlights
9MFY2020 Key Highlights Operations profitable; on track to achieve revised sales target of RM1.4b Financial Performance Snapshot Financial Position as at 30 September 2020 • Revenue: RM1,357.6m Cashflow from Cash & Cash Equivalent Net Gearing Operations • Core PBIT: RM83.6m RM842.0m 26.4% • Reported
Slide 4: Financial Performance for 3QFY2020 & 9MFY2020
Financial Performance for: Third Quarter & Nine Months of FY2020 (3QFY2020 & 9MFY2020)
Slide 5: Profit & Loss Performance
Profit & Loss Performance Recovery in 3QFY20; resulting in core profitability for the quarter and on YTD basis RM mil 3QFY20 3QFY19 YoY% 2QFY20 QoQ% 3QFY20 vs 3QFY219 (YoY) and 2QFY20 (QoQ) Revenue 592.6 850.0 (30.3) 288.2 105.6 • Higher revenue in 3QFY20 vs 2QFY20 (QoQ) on the back Gross Profit 90.
Slide 6: Core Results in 3QFY2020
Core Results in 3QFY2020 Core PBIT in 3QFY2020 improved by 74% YoY and 502% QoQ respectively Core Revenue 2QFY20: RM281.7m Core PBIT 2QFY20: (RM26.1m) 3QFY2020 3QFY2020 Impairments / Write-down of Reversal of LAD Revenue on non-core Write- downs / Reve rsal of LAD inventories at Gain on non-core Rep
Slide 7: Core Results in 9MFY2020
Core Results in 9MFY2020 9M core PBIT and core PATAMI declined by 65% and 75% YoY respectively Core Revenue 6MFY20: RM769.0m Core PBIT 6MFY20: (RM21.3m) 9MFY2020 9MFY2020 Imp airments / Write- down of Reversal of LAD Revenue on non-core Write- downs / inven tories at Other losses / Gain on non-core
Slide 8: Segmental PBIT/(LBIT) Analysis for 9MFY2020
Segmental PBIT/ (LBIT) Analysis for 9MFY2020 Surge in core PBIT for Property Development and profit for Leisure in 3QFY2020, contributing to 9MFY2020 overall profitability AM 242.4% (RM426.7m) PD RM299.6m 66.4% (RM15.7m) (RM46.7m) 107.4% (RM14.3m) RM193.8m 58.4 Core 9.1 107.0 241.3 (9.1) Non-core 20
Slide 9: Cash and Borrowings as at 30 September 2020
Cash and Borrowings as at 30 September 2020 Healthy cash balances on the back of positive operating cashflow, with moderate gearing level Cash & Cash Equivalents Group Borrowings (RM mil) (RM mil) Cash & Cash Equivalents 1,200.0 389.8 RM3,312.2m 0.49% RM3,296.0m 1,000.0 (49.1) 842.0 Short term Short
Slide 10: Property Development Inventories
Property Development Inventories Completed and ongoing inventories remain at manageable level Total Inventories GDV of Unsold Units: RM2,546.7m Unsold units: 2,874 units RM6,403.8m 2.0% RM6,532.8m By Type By Category RM mil RM mil Incoming Completed RM mil Others Statutory 1.6 1.7 RM87.2m Completed
Slide 11: Operational Performance for 9MFY2020
Operational Performance for 9MFY2020
Slide 12: Sales Achieved by Product Type and Location
Sales Achieved by Product Type and Location Residential & Industrial products remain as the right products in the Klang Valley Sales Achieved By Product Type RM1,272.1m By Location 98.9 7.1 43.3 21.6 46.7 (7.8%) (0.6%) (3.4%) (1.7%) (3.7%) Residential Landed Guthrie Corridor 118.7 Residential High-r
Slide 13: Unbilled Sales as at 30 September 2020
Unbilled Sales as at 30 September 2020 Stable unbilled sales with revenue visibility for the next 2 years Breakdown by Type Breakdown by Location RM1,534.0m RM1,534.0m 1.12% RM1,551.5m 4.8 10.5 Integrated 108.8 53.5 Development 338.1 RM334.9m 290.9 (21.8%) 426.1 635.8 Township Development RM1,199.1m
Slide 14: Launches in 9MFY2020
Launches in 9MFY2020 Commendable average take-up rate of 84% for new launches as at 15 November 2020 Launched 1,596 units worth RM1,334m GDV in 9MFY2020 Year to Date Project Launches Elmina West Total Units & GDV of Launches in Elmina East (Ilham Residences) (Elmina Green 3A&3B) FY2019 & FY2020 (Lin
Slide 15: Spotlight 2020
Spotlight 8 2020 Successful sales campaigns continue to be the winning formula for SD Prop 16th July 2020 - 27th Sep 2020 Successfully garnered RM1.5b of and extended for another week bookings through the campaign, surpassing to 10th Oct 2020 Spotlight 8 2019’s booking of RM1.1b CAMPAIGN HIGHLIGHTS
Slide 16: Strategy Moving Forward
Strategy Moving Forward
Slide 17: Property Market Overview
Property Market Overview Near- term prospect remains challenging; recovery tempered by third wave of the pandemic Government’s Measures The RESIDENTIAL MARKET remains challenging ➢ Mixed sentiment in the current residential market but overall interest in the sector remains • Stamp duty exemption des
Slide 18: Key Focus Areas for FY2020
Key Focus Areas for FY2020 Short term focus to ensure a sustainable revenue stream IMMEDIATE TERM: Business Re-alignment & Focus 1 REVENUE GENERATION 2 FINANCIAL MANAGEMENT GETTING IT INTENSIFY CONVERSION OF CLEAR UNSOLD COST & CASHFLOW RIGHT (Product & MARKETING BOOKINGS INTO INVENTORIES MANAGEMEN
Slide 19: Key Focus Areas Beyond FY2020
Key Focus Areas Beyond FY2020 While maintaining sight of a balanced & diversified business portfolio over the longer-term MOVING FORWARD: Maximising SD Prop’s potential from FY2021 onwards DIVERSIFICATION OF ENHANCE COMPLEMENTARY BUSINESS 1 2 SEGMENTS & PLACEMAKING OF TOWNSHIPS DEVELOPMENT INCOME ST
Slide 20: Investment Proposition
Investment Proposition
Slide 21: Investment Proposition
Investment Proposition Strong fundamentals and track records for growth 1 2 3 RESILIENT FINANCIAL PROMISING GROWTH STABLE SHAREHOLDERS’ POSITION POTENTIAL RETURN Solid balance sheet as at 30 September Industry long-term prospects remain Stable returns : 2020 : positive : • Historical pay-out ratios
Slide 22: Thank You
Property THANK YOU
Slide 23: Appendix
Appendix
Slide 24: Remaining Landbank and GDV as at 30 September 2020
Remaining Landbank and GDV as at 30 September 2020 Sustainable growth with remaining developable period of 25-30 years By Remaining Developable Land By Remaining Gross Development Value (GDV) (acres) (RM bn) 818 310 5.0 (6.2%) (2.3%) 5.4 (5.9%) (6.5%) 1,414 (10.7%) 26.9 8.7 (32.2%) 4,739 (10.5%) 13,
Slide 25: Government's Measures for Property Market
Government’s Measures for Property Market Government’s stimulus packages to spur property market in this low interest rate regime • Market started to pick up post MCO in June, but has been hit again by the 3rd wave of the pandemic • Low Overnight Policy Rate (OPR) and various government relief measu
Slide 26: Government's Measures for Property Market (Cont'd)
Government’s Measures for Property Market (Cont’d) Government’s stimulus packages to spur property market in this low interest rate regime 4 Budget 2021 RESIDENTIAL ➢ Stamp duty exemption on instruments of transfer & loan agreement for 1st time buyers for residential properties up to MYR500,000/unit
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