PropNex Ltd. · SGX:OYY
PropNex — 2Q2021 Earnings Presentation
33 slides from PropNex's earnings presentation, August 2021
Slide 1: 2Q2021 Analyst Briefing
PropNex @ Service You Trust SINGAPORE PROPNEX LIMITED > Fie . = ~— 24 2 4 2 SS ey OE) 2. ee ee 28) § Ses See OY oe S280 2) SOS ee Oe S28 Le ee a= 202021 ANALYST BRIEFING
Slide 2: Disclaimer
DISCLAIMER This presentation does not constitute or form part of any opinion on any advice to sell, or any solicitation of any offer to subscribe for any shares nor shall it or any part of it nor the fact of its presentation form the basis of, or be relied upon in connection with, any contract or in
Slide 3: PropNex's 2Q2021 Net Profit After Tax Grew 135% to S$18.2 Million
PROPNEX’S 2Q2021 NET PROFIT AFTER TAX GREW 135% TO S$18.2 MILLION Declares Extends interim Revenue Debt-free, regional dividend of grows strong cash footprint to 5.5 147.2% to position of Cambodia Singapore S$260.5 S$120.7 via Master cents per million million Franchise share Page 4
Slide 4: Financial Snapshot
FINANCIAL SNAPSHOT Page 4
Slide 5: 2Q2021 Income Statement
2Q2021 INCOME STATEMENT (in S$'000) 2Q2021 2Q2020 • Proj. mktg 158% 2Q21: $126.8m, 2Q20: $49.2m • Pte resale 250% 2Q21: $53.7m, 2Q20: $15.3m Rev 260,479 105,380 147% • HDB resale 68% 2Q21: $32.1m, 2Q20: $19.1m • Landed resale 171% 2Q21: $16.2m, 2Q20: $6.0m COS (232,642) (93,053) 150% • Re
Slide 6: 1H2021 Income Statement
1H2021 INCOME STATEMENT • Proj. mktg 106% 1H21: $225.1m, 1H20: $109.4m (in S$'000) 1H2021 1H2020 • • HDB resale 58% 1H21: $59.6m, 1H20: $37.7m Pte resale 146% 1H21: $108.7m, 1H20: Rev 481,057 240,446 100% $44.2m • Landed resale 150% 1H21: $31.6m, 1H20: COS (429,943) (213,284) 102% $12.6m GP 5
Slide 7: Revenue by Quarter
REVENUE BY QUARTER 260 Effects of 221 Effects of circuit cooling breaker Millions measures 156 131 136 122 124 123 118 103 106 83 92 74 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 Page 7
Slide 8: Group Revenue
- Nw PropNex — GROUP REVENUE SINGAPORE PROPNEX LIMITED ec 2 481.1 = . ; 224.5 ” 240.4 188.4 vo98 | 31.4 3078 278.3 291.4 2547 8 216.6 . 152.3 OH 129.3 FY15 FY16 FY17 FY18 FY19 FY20 1H20 1H21 Page 8 Agency & Proj Mktg
Slide 9: Gross Profit & Margin
GROSS PROFIT & MARGIN 11.3% 10.6% Page 9
Slide 10: Net Profit & Margin
NET PROFIT & MARGIN 7.1% 6.6% Page 10
Slide 11: Business Updates
BUSINESS UPDATES Page 11
Slide 12: State of the Property Market
STATE OF THE PROPERTY MARKET • Sales momentum gained traction in 2H2020 and continued into 1H2021 • Private home and HDB resale prices defied pandemic woes, posting growth in 2020 and 1H2021 • Multiple sales drivers of housing demand at play, including: Gradual Safe haven Pandemic Low interest econo
Slide 13: State of the Property Market
STATE OF THE PROPERTY MARKET …...property market is not considered overheated at this juncture…. We hope the market will continue to remain stable and that we don't have to make any moves…. Ravi Menon Monetary Authority of Singapore (MAS) Managing Director Business Times Report, 30 June 2021
Slide 14: Private Residential Prices
PRIVATE RESIDENTIAL PRICES Private Property Price Index (PPI) – % Change Price Overall 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 1H 2021 Indices 2020 Overall PPI -1.0 0.3 0.8 2.1 2.2 3.3 0.8 4.1 Landed -0.9 0.0 3.7 -1.6 1.2 6.7 -0.3 6.4 Non- -1.0 0.4 0.1 3.0 2.5 2.5 1.1 3.6 Landed CCR -2.2 2.7 -3.8 3.2 -0.4 0.5
Slide 15: Strong Sales Momentum in 1H2021
STRONG SALES MOMENTUM IN 1H2021 Overall Private Home Sales (By Type) 25,000 1H 2021 New Sales: 64.7% of 2020 20,000 1H 2021 Resales 91.8% of 2020 Units Sold 15,000 10,000 5,000 0 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 1H 2021 NEW SALE 16,292 15,904 22,197 14,948 7,316 7,440 7,972 10,
Slide 16: More Than 6,400 New Homes Sold in 1H2021
2000 5,406 2001 5,559 2002 9,485 2003 5,156 2004 5,785 2005 8,955 2006 11,147 Source: PropNex Research, URA, URA Realis 2007 14,811 2008 4,264 2009 14,688 2010 16,292 2011 15,904 2012 22,197 2013 14,948 2014 7,316 Private New Home Sales (ex. ECs) 2015 7,440 2016 7,972 2017 10,566 2018 8,795 MORE THA
Slide 17: Top Best Selling Projects in 2021
TOP 10 BEST SELLING PROJECTS IN 2021 Top 10 Best-Selling Projects in Jan - Jul 2021 (Ex. ECs) Average Transacted Launch Units Sold Unit Price in S/N Project Region Date (Jan – Jul 21*) Jan – Jul 21* ($ PSF) 1 NORMANTON PARK Jan-21 RCR 1,003 $1,776 2 PASIR RIS 8 Jul-21 OCR 416 $1,613 3 TREASURE AT TA
Slide 18: HDB Resale Market (Transaction Volume)
HDB RESALE MARKET (Transaction Volume) HDB Resale Volume 1H 2021 HDB transactions 30,000 59.2 % of 2020 25,094 24,748 25,000 23,714 23,099 22,077 20,813 20,000 19,306 18,100 17,318 Number of Units 14,644 15,000 10,000 7,581 7,063 5,000 0 2012 2013 2014 2015 2016 2017 2018 2019 2020 Q1 2021 Q2 2021 1
Slide 19: Dwindling Unsold Stock
DWINDLING UNSOLD STOCK Total Uncompleted Unsold Units (excl ECs) 40,000 36,839 35,564 Vibrant En-bloc sale 34,824 35,000 33,255 33,673 market in 2017/2018 31,948 31,004 30,819 30,467 30,162 29,482 29,149 30,000 28,120 27,977 27,024 26,742 27,061 26,943 26,483 24,435 24,296 25,000 23,271 23,514 22,45
Slide 20: 2Q2021 Projects Launched
2Q2021 PROJECTS LAUNCHED No. of Date of S/N Appointed Project Location District Region Tenure Developer Units Launch 1 Irwell Hill Residences Irwell Bank Road 9 CCR 99 CDL Perseus Pte Ltd 540 2Q 2021 2 Grange 1866 Grange Road 10 CCR FH Heeton Holdings 60 2Q 2021 3 One-North Eden 8 & 10 Slim Barracks
Slide 21: 2H2021 Projects Lined-Up
2H2021 PROJECTS LINED-UP The no. of units and estimated launch dates were gathered from developers PROPNEX APPOINTED MARKETING AGENCY No. of Date of S/N Appointed Project Location District Region Tenure Developer Units Launch 1 Pasir Ris 8*** Pasir Ris Rise 18 OCR 99 Allgreen Properties 600 3Q 2021
Slide 22: 2021 Projects Lined-Up
2021 PROJECTS LINED-UP The no. of units and estimated launch dates were gathered from developers PROPNEX APPOINTED MARKETING AGENCY No. of Date of S/N Appointed Project Location District Region Tenure Developer Units Launch Japura Development, part of CK 8 Perfect 10 Bukit Timah Road 10 CCR FH 230 3
Slide 23: Unsold Inventory: Existing & 2021 Projects
UNSOLD INVENTORY : EXISTING & 2021 PROJECTS Existing projects still marketing Existing inventory still marketing (landed, non-landed & retail) (no of units : incl landed, non-landed & retail) 110 10,353 No of PropNex appointed projects Estimated total units to be launched in 2H2021 to be launched in
Slide 24: 2022 Projects Lined-Up
2022 PROJECTS LINED-UP ** The no. of units and estimated launch dates were gathered from developers *BOLD – PROPNEX APPOINTED MARKETING AGENCY No. of Date of S/N Appointed Project Location District Region Tenure Developer Units Launch 1 Joo Chiat Place Joo Chiat place 15 RCR FH K16 Development 29 1Q
Slide 25: Successful Collective Sales
SUCCESSFUL COLLECTIVE SALES 93b, 93c & 95 Lor N Telok Kurau- sold 30 Dec 2020 @$23.6m Ji Liang Gardens sold 23 Jun 2021 @ $18.6m Page 25
Slide 26: Exclusive Collective Sales
EXCLUSIVE COLLECTIVE SALES PropNex secured the exclusive En Bloc Sale 1 Commercial Office Space 999 years in excess of $280m Page 26
Slide 27: Exclusive Collective Sales: 6 Residential Condominiums
EXCLUSIVE COLLECTIVE SALES PropNex secured the exclusive En Bloc Sale 6 Residential Condominiums valued at $4.118b Likely to be launched in 2021 & 2022 Page 27
Slide 28: What Sets Us Apart
WHAT SETS US APART Largest Real Estate Agency Resilient Business Model Page 28
Slide 29: Our Salesforce
OUR SALESFORCE ✓ First to cross 9,500 mark ✓ 9,540 salespersons* @ 1 Aug 2021 ➢ Aim to cross 10,000 salespersons by end 2021 ➢ 12,000 salespersons by 2023 Singapore top 4 property agencies by number of salespersons: 1 Jan 2019 till to date Page 29 *Source: The Council for Estate Agencies as at 1 Aug
Slide 30: Our Regional Presence
OUR REGIONAL PRESENCE KH 1) Indonesia • 2017 with approximately 1,000 salespersons and 12 offices 2) Malaysia • 2018 with approximately 1,041 salespersons in 4 offices 3) Vietnam • 2018 with close to 162 salespersons 4) Cambodia (NEW) • 2021 with approximately 500 salespersons, consists of 2 offices
Slide 31: Our Regional Presence: Cambodia
OUR REGIONAL PRESENCE Cambodia • Expanded the PropNex brand in May KH 2021 • Consists of 2 offices - Phnom Penh and Sihanoukville with approximately 500 salespersons © PropNex Realty
Slide 32: Over 12,000 Salesforce Footprint
OVER 12,000 SALESFORCE FOOTPRINT
Slide 33: Thank You
Thank You