Sime Darby Property Bhd. · MYX:SIMEPROP
Sime Darby Property Bhd — Q3 2021 Earnings Presentation
36 slides from Sime Darby Property Bhd's earnings presentation, Nov 26, 2021
Slide 1: Financial Results Virtual Briefing Session
OSFY202 jee FINANCIAL RESULTS VIRTUAL BRIEFING SESSION aa Sdide= FTSE4Good simedarbyproperty.com
Slide 2: Table of Contents
Table of Contents Page 1. 9M FY2021 Key Highlights (Financial & Operational) 3–6 2. Financial Performance for Q3 FY2021 and 9M FY2021 7 – 12 3. Operational Performance for 9M FY2021 13 – 20 4 Updates on Land Bank 21 – 23 5. Strategy Moving Forward 24 – 28 6. Investment Proposition 29 – 30 7. Appendi
Slide 3: 9M FY2021 Key Highlights (Financial)
9M FY2021 Key Highlights (Financial) Revenue of ~RM1.5b and PBT of RM147.4m, translating into PATAMI of RM64.7m in 9M FY2021 Financial Performance Snapshot Segment Revenue Leisure Revenue Reported PBT Reported PATAMI 41.2 Property (2.6%) Development RM1,480.6m RM147.4m RM64.7m 1,446.8 (92.8%) Invest
Slide 4: YTD FY2021 Key Highlights (Operational) (1/3)
YTD FY2021 Key Highlights (Operational) (1/3) Launched RM2.3b worth of products in 9M; recent launches of residential products in October and November captured outstanding responses from homebuyers Operational Highlights RM2,277.0m GDV with 90% average take-up rates for 9M Successful launch of the m
Slide 5: YTD FY2021 Key Highlights (Operational) (2/3)
YTD FY2021 Key Highlights (Operational) (2/3) 9M sales achievement of RM1.9b met ~80% of full year sales target of RM2.4b Sales Highlights Achieved RM615.5m sales in Q3 FY21 & RM1.9b sales in 9M FY21 buoyed by (1) effective online sales efforts (system built in- house); (2) Home Ownership Campaign;
Slide 6: YTD FY2021 Other Highlights (Operational) (3/3)
YTD FY2021 Other Highlights (Operational) (3/3) Keeping the momentum strong with focus on industrial developments, placemaking innovation & sustainability Other Operational Highlights Our pledge aligns with our aim to become a Force for Good dedicated to lowering our carbon footprint and delivering
Slide 7: Financial Performance
Financial Performance Third Quarter (Q3 FY2021) & Nine Months (9M FY2021) ended 30 September 2021 City of Elmina, Shah Alam 7
Slide 8: Profit & Loss Performance
Profit & Loss Performance 9M revenue and PBT increased by ~9% YoY and ~133% YoY; Q3 results impacted by MCO; Partially cushioned by effective sales efforts & HOC Q3 FY2020 RM mil Q3 FY2021 (restated) YoY% Q2 FY2021 QoQ% Key Takeaways Revenue 388.2 592.6 (34.5) 502.8 (22.8) Q3 FY2021 vs Q3 FY2020 (Yo
Slide 9: Segmental Revenue and PBT/(LBT) Analysis for Q3 FY21 & 9M FY21
Segmental Revenue and PBT/(LBT) Analysis for Q3 FY21 & 9M FY21 Commendable performance of PD as marketing efforts and commitment to clear unsold stocks continued Property Development (PD) Q3 FY21 9M FY2021 9M FY2020 • Q3 FY21 was impacted by FMCO – lower sales achieved and site progress: Revenue RM1
Slide 10: Segmental Revenue and PBT/(LBT) Analysis for Q3 FY21 & 9M FY21
Segmental Revenue and PBT/(LBT) Analysis for Q3 FY21 & 9M FY21 I&AM revenue buoyed by KLEM’s contribution; Leisure segments most impacted by the outbreak Investment & Asset Management Leisure 9M FY2021 9M FY2020 9M FY2021 9M FY2020 Revenue RM71.4m RM55.8m 28.1% Revenue RM41.2m RM55.7m 26.1% PBT RM11
Slide 11: Cash and Debt as at 30 September 2021
Cash and Debt as at 30 September 2021 Healthy cash balances with positive operating cash flow generated from improving sales Cash & Cash Equivalents Group Debt (RM mil) (RM mil) 31 Dec 2020 30 Sept 2021 (Restated) Net operating cash inflow remains positive: • Encouraging sales of completed stocks RM
Slide 12: Property Development Inventories
Property Development Inventories Completed inventories reduced by 29% to low of ~RM403m from FY2020’s closing of ~RM570m; More property development in ongoing inventories to unlock land value Inventories in Carrying Value Inventories in GDV & Units 31 Dec 2020 30 Sept 2021 (Restated) Not New Launch
Slide 13: Operational Performance
Operational Performance 9M FY2021 City of Elmina, Shah Alam 13
Slide 14: Sales Achieved by Product Type and Location
Sales Achieved by Product Type and Location Residential landed and high-rise are key sales contributors with ~70% sales across all major townships 9M FY2021 Sales Achieved By Product Type RM1,926.0m By Location (RM mil) (RM mil) Negeri Sembilan Statutory 138.7 Commercial 88.8 (7.2%) 167.0 (4.5%) (8.
Slide 15: Unbilled Sales as at 30 September 2021
Unbilled Sales as at 30 September 2021 Unbilled sales surpassed the RM2.0b mark for the first time since Q2 FP2018 on strong sales achieved Unbilled sales cover ratio recorded highest at 1.1x 2,500.0 1.2 1.1 1.0 0.9 1.0 RM2,084.6m as at Q3 FY2021 1.0 2,000.0 0.9 By Property Development Type 0.8 Town
Slide 16: Q3 FY2021 Launches (1/2)
Q3 FY2021 Launches (1/2) Q3 FY2021: RM639.8m GDV & 447 units launched; bringing YTD total to RM2.3b GDV & 2,253 units launched with exceptional residential take-up rates Total Launches in Q3 FY2021 447 units @ RM639.8 million GDV Residential Landed - 140 units @ RM93.0 million GDV Lyra 3, Bandar Buk
Slide 17: Q3 FY2021 Launches (2/2)
Q3 FY2021 Launches (2/2) Jendela Residences Phase 2 benefitted from the spillover effect of successful launch of Phase 1; Launched ~RM547m worth of residential high-rise, commercial & statutory products in Q3 Residential High-rise (Phase 2) - 266 units @ RM534.0 million GDV Jendela Residences, KLGCC
Slide 18: Q4 FY2021 Launches
Q4 FY2021 Launches Strategic planned launches worth ~RM1.6b in Q4 totalling to FY21 launches of ~RM3.9b Supported by enhanced end-to-end online sales capability, ongoing HOC & low-rate environment Planned Launches for Q4 FY2021 ~RM1.6 billion GDV | 1,856 units Planned launches in Q4: RM1,594m GDV &
Slide 19: Battersea Power Station Updates
Battersea Power Station Updates Phase 2 & 3A – Leasing performance outperforms the market; ready for completion and opening in summer 2022 supported by more than 40 retailers & F&B operators 80% PHASE 2: THE SWITCH HOUSE WEST Overall commercial space let (including Apple’s 500k sq. ft. office) ▪ Com
Slide 20: Battersea Power Station Updates
Battersea Power Station Updates Phase 3A – Completion in H1 of next year Phase 3B – Construction works to deliver the Phase 3B building commenced; completion in 2023 PHASE 3: THE ELECTRIC BOULEVARD PHASE 3A PHASE 3B 30 Retail elements Shops and restaurants Shops and restaurants 542 200,000 Apartment
Slide 21: Updates on Land Bank
Updates on Land Bank City of Elmina, Shah Alam 21
Slide 22: Land Bank Updates – Proposed Acquisition of Land in Labu
Land Bank Updates – Proposed Acquisition of Land in Labu Proposed acquisition of ~760 acres of land in Labu as part of strategic development in MVV 2.0 Proposed Acquisition of ~760 acres land in Labu at RM280 mil • Sime Darby Property exercised its first right of refusal under the Call Option Agreem
Slide 23: Speed of development to monetise land in Hamilton Nilai
Speed of development to monetise land in Hamilton Nilai Launched Hamilton Nilai in October; 100% total LOO accepted/Earnest Deposit received for Plot 1 & 2 as at 23 November 2021 1 List of key buyers: Acotec 3 2 • Genesis Aluminium Asian TFS Holdings Resinated Feld 4 Industries Sdn. Bhd. 8 Kilang 9
Slide 24: Strategy Moving Forward
Strategy Moving Forward City of Elmina, Shah Alam 24
Slide 25: MY: Economic & Property Market Outlook
MY: Economic & Property Market Outlook GDP is on track to expand between 3.0% to 4.0%; expected to hit 5.5% to 6.5% in 2022 Bank Negara Malaysia (BNM) National Property Information Centre (NAPIC) Malaysia’s growth trajectory is expected to improve given resumption of economic activities, further imp
Slide 26: UK: Q3 GDP Grows by 1.3% (Q2: 5.5%); Anticipated Housing Price Growth
UK: Q3 GDP Grows by 1.3% (Q2: 5.5%); Anticipated Housing Price Growth Despite the weaker economic environment, analysts are optimistic on housing market outlook “Whilst there were indicators that demand had softened, supply was still constrained, and combined with low unemployment would lead to soft
Slide 27: Key Achievements Guided by 4 Corporate Priorities
Key Achievements Guided by 4 Corporate Priorities YTD achievements Mar 2021 • Higher safety & hygiene standard Launch of Pagoh Special for construction workers Economic Zone The 4 Corporate Priorities will serve as a guide to pivot our business… accommodation by Prime Minister 1st Phase worth RM1.1b
Slide 28: Expectations for Full Year FY2021
Expectations for Full Year FY2021 A better financial year Industrial & Sales Gross Profit Completed New Launches Unbilled Sales Logistics Achievement Margin Stock Development Target RM3.9b Target to exceed YTD surpassed YTD sales Approximately Low of GDV worth of RM2.4b sales RM2.0b since contributi
Slide 29: Investment Proposition
Investment Proposition City of Elmina, Shah Alam 29
Slide 30: Investment Proposition
Investment Proposition Solid fundamentals and track records for growth Improved Financial 1 Resilient Financial Position Performance Solid Balance Sheet Revenue Visibility * as at 30 September 2021 ^ as at 7 November 2021 9M FY21 Revenue Low Net Gearing Sales Achievement Unbilled Sales RM1,480.6m (+
Slide 31: End of Presentation | Q&A
End of Presentation | Q&A City of Elmina, Shah Alam 31
Slide 32: Financial Results Virtual Briefing Session
OSFY202 jee FINANCIAL RESULTS VIRTUAL BRIEFING SESSION aa Sdide= FTSE4Good simedarbyproperty.com
Slide 33: Thank You
Thank You Sime Darby Property Berhad 197301002148 (15631-P) No. 2, Jalan PJU1A/7A Ara Damansara 47301, Petaling Jaya Selangor, Malaysia simedarbyproperty.com
Slide 34: Appendices
Appendices City of Elmina, Shah Alam 34
Slide 35: Focus Areas
7 Focus Areas Connecting the dots for our organisational transformation journey 1 Operational Excellence Establish a firm foundation to transform the Group into a performance-driven organisation through continuous improvement in the way we work 2 Organisational Excellence Raise productivity and enri
Slide 36: Property Development Inventories
Property Development Inventories By Type – mainly from high-rise products (~37%) followed by industrial products (~24%) Others RM100.3m (4.0%) Residential High- Statutory rise RM151.5m RM929.0m (36.7%) (6.0%) Inventories in Commercial GDV RM281.0m (11.1%) RM2,534.0m Industrial RM610.2m Residential L
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