S P Setia Bhd. · MYX:SPSETIA
S P Setia Bhd — Q3 2024 Earnings Presentation
39 slides from S P Setia Bhd's earnings presentation, Nov 26, 2024
Slide 1: Financial Results & Group Update
E-Industrial Park Setia Federal Hill Artist impression Financial Results & Group Update For financial period ended 30 September 2024 26 November 2024
Slide 2: YTD Q3 '24 At a Glance
YTD Q3 ‘24 At a Glance Resilient sustainable profit: reflecting robust core property development sales, supported by strategic land monetization and effective de-gearing execution Sales Revenue PBT -18% YoY 41% YoY 129% YoY RM 3.20 bil RM 4.23 bil RM 853 mil (YTD Q3 ‘23: RM2.99 bil) (YTD Q3 ’23 : RM
Slide 3: Land bank & Projects (as at 30 Sept 2024)
Land bank & Projects (as at 30 Sept 2024) Wide range of product offerings to support growth Gross remaining land bank 5,581 acres 19. Setia Alaman Industrial Park (GDV: RM127.71 bil) 42 On-going Projects 3
Slide 4: Remaining land banks
Remaining land banks We have 5,581 acres of remaining land banks with a total GDV of RM127.71 bil as at 30 Sept 2024 Eastern International Eastern, 44 acres, 1% International, 54 acres, 1% 44 acres, (GDV: RM3.08 1% bil, 2%) 35 acres, (GDV: 1%bil, 27%) RM34.2 Southern, Southern 1,064 20% 1,130 acres,
Slide 5: FY 2024 Target – On track
FY 2024 Target – On track YTD Q3 ‘24 sales underpinned by Central Region (robust industrial segment performance) and Southern Region (favourable demand conditions) RM 3.20 bil RM 3.50 bil YTD Q3’24 Sales Unbilled Sales at 30 Sept’24 RM4.4 bil RM 556 mil RM 1.97 bil FY 2024 Sales in Pipeline Future L
Slide 6: Q3 '24 Launches
Q3 ‘24 Launches Launched a total GDV of RM1.62 bil in YTD Q3 ’24 Central Southern Residential Residential Commercial Future Launches Planned Q4 Launches RM1.97 bil Phase: Le Jardin (Lumiere) Phase: Ferrous 3 (Phase-06) Phase: Indah Prime 2 Type: Cluster Semi-Detached Type: Double Storey Terrace Hous
Slide 7: Financial Performance
Financial Performance Setia
Slide 8: YTD Q3 '24 Sales Performance
YTD Q3 ‘24 Sales Performance YoY lower sales mitigated by land monetisation and industrial segment contribution of Setia Alaman Industrial Park Sales breakdown by geography Sales (RM’mil) Malaysia: 3,893 Eastern Land Management (Johor) Malaysia: RM10 mil International 3,197 • Taman Pelangi Northern
Slide 9: YTD Q3 '24 Revenue Performance
YTD Q3 ‘24 Revenue Performance +41%YoY increase driven by land monetisation and property development contributions in the Southern Region, Central Region and Vietnam Revenue (RM’mil) +41% Revenue breakdown by geography +17% YoY 4,229 QoQ International RM476 mil 2,990 1,268 (11%) 124 1,259 1,079 Reve
Slide 10: YTD Q3 '24 PBT Performance
YTD Q3 ‘24 PBT Performance Profits lifted by successful land sales and transaction gain, offset by higher UK losses PBT (RM ’mil) PBT breakdown by geography +51% +129% QoQ YoY International -RM112mil (-13%) 853 Northern & Eastern RM4 mil (1%) Central RM352 mil (40%) 372 PBT 205 YTD Q3 ’24 137 RM 853
Slide 11: YTD Q3 '24 Profitability Analysis
YTD Q3 ‘24 Profitability Analysis Resilient earnings on the back of solid execution of portfolio strategies Gross Profit (RM’mil) PATANCI (RM’mil) +215% Property YoY Development 29% 27% Gross Margin: +59% ( 0 ) ( 0) YoY 1,385 472 ( 0) 870 YTD Q3 2 3 Other 4 JV YTD Q3 YTD Q3 ‘23 YTD Q3 ‘24 YTD Q3 23
Slide 12: YTD Q3 '24 Net Gearing
YTD Q3 ‘24 Net Gearing Debt reduction of RM1.34 bil in 2024 as net gearing is lowered to 0.35x – effective debt management capital allocation RM1.34 bil 0.61 debt reduction 0.6 14.0 0.57 in 2024 12.0 0.49 12.6 0.5 0.45 11.4 0.41 10.0 Net gearing (ratio) 10.1 0.4 9.7 9.4 0.35 8.8 RM'bil 8.0 0.3 6.0 0
Slide 13: Operational Updates
Operational Updates Setia 13
Slide 14: Unbilled Sales as at Sept 2024
Unbilled Sales as at 30 Sept 2024 Providing core development revenue coverage in the short to medium term Vietnam RM52 mil Australia (2%) RM35 mil (1%) Unbilled Sales RM 3.50 bil as at 30 Sept 2024 Malaysia RM3,416 mil 30 June 2024: (97%) RM4.39 bil Malaysia Unbilled Sales • Central – RM 2.6 bil (RM
Slide 15: Completed Inventories as at Sept '24
Completed Inventories as at 3 Sept ‘24 Achieved RM380 million reduction of stocks compared to Q4 ‘23 level, representing ~22% clearance progressively RM’mil As at 30 Sept 2024 Total Inventory – Completed Stock 2,000 Region RM’ mil Units Integrated *1,721 1,766 798 276 1,800 Development 1,656 Central
Slide 16: Battersea Power Station Updates
Battersea Power Station Updates 2% (vs H1 FY’24) Residential 61% Residential Sales Phase 3B (Koa@Electric Boulevard) 25% (vs H1 FY’24) Commercial 45% Leasing Status Phase 3B (Office Building) • BPS has attracted over 24 million visitors since the Power Station and Electric Boulevard opened in Octobe
Slide 17: Battersea Power Station Updates
Battersea Power Station Updates Project commencement 2012 Phase 1 (Circus West Village) Completed in 2017 Meanwhile Total Gross Area use: Neon avatar 41.67 acres Padel Phase 2 (The Power Station) Completed 2022 Mall Developed Gross Apple HQ: Area Phase 3A (Electric Opened in June 2023 24.21 acres Bo
Slide 18: Phase 3B – Northern Line Extension, Phase 3C
PHASE 3B -Northern Line Extension PHASE 3C PHASE 3B – 50 ELECTRIC BOULEVARD & KOA PHASE 3C 18
Slide 19: Setia Green e-Industrial Park
Setia Green e-Industrial Park 19
Slide 20: Green e-Industrial Park
Green e-Industrial Park Setia is expanding its property development into industrial development, with three locations currently identified, totaling 1,029 acres, for industrial park development. 20 323 acres 399 acres 307 acres GDV RM1.68 bil GDV RM3.09 bil GDV RM1.87 bil 8 years 6 years 7 years (20
Slide 21: Green Industrial Park
Green Industrial Park Key enablers required Potential outcomes e Expertise and branding in green New revenue stream, to capitalise on rapid growth of industrial segment and global energy to attract large industrial realignment of supply chain I players Pioneer of the circular eco-industrial park con
Slide 22: Green Industrial Park - Components
Green Industrial Park - Components 1. Gated and guarded with 24 hours security control 2. Security fencing with CCTV surveillance 3. Workers accommodation within the industrial park 4. Management office with club house facilities 5. High speed broadband for internet connectivity 6. Foodcourt area fo
Slide 23: Setia Alaman e-Industrial Park Zoning
Setia Alaman e-Industrial Park Zoning Available Plot ~RM600mil of Industrial Sales contribution to-date • YTD Q3 24 RM368 mil • FY2023 RM189 mil Future Future Development Development Total 312 acres Future 399 acres land Industrial land Development Future Development 87 acres Commercial land Future
Slide 24: Industrial development plots – Purchasers
Industrial development plots – Purchasers Business profile (Light & Medium Industry) ▪ Logistics services ▪ Distribution of machinery ▪ Steel manufacturing, trading and distribution ▪ Real estate ▪ Food and beverage distribution ▪ Investment holding ▪ Warehouse Development ▪ Cold Storage 24
Slide 25: Video of Green e-Industrial Park
Video of Green e-Industrial Park
Slide 26: Catalytic Development
Catalytic Development Setia 26
Slide 27: Landbank management - Catalytic development and collaboration strategy
Landbank management - Catalytic development and collaboration strategy Setia Alam City Future commercial Upcoming catalytic developments: development ▪ College/University/ Private School ▪ Pet Hospital ▪ Offices ▪ Retail/Commercial 27
Slide 28: Setia Alam Impian Catalytic Development
Setia AlamImpian Setia AlamImpian – – Catalytic Development Catalytic Development 28
Slide 29: Sustainability
Sustainability Setia 29
Slide 30: Sustainability in Residential and Commercial
Sustainability in Residential and Commercial 4,261 acres Residential & Commercial Landbanks Scope 3 1,044 KgCo2e/M2 2030 = 500 2030 = 400 (Highrise) & Scope 3 (Landed) 487 KgCo2e/M2 (Intensity) (Intensity) KgCo2e/M2 KgCo2e/M2 (Commercial) On-going Initiatives Future Potential Partners To adopt green
Slide 31: The World Class 'Eco-Industrial Park' – Sustainability Approach
The World Class ‘Eco-Industrial Park’ – Sustainability Approach acres Industrial Estate Principles & Components to Landbanks 1,000 Achieve ‘EIP’ • Leverage circular economy • Foster cross- Estimation to Reduce Carbon for Industrial Estate by Solar Energy sector collaboration and sustainable Note: 1M
Slide 32: Best Practice for EIP Across the World
Best Practice for EIP Across the World Thang Long Industrial Park Ulsan Mipo JTC CleanTech Park (Vietnam) (South Korea) (Singapore) Acreage 746ac 11,266ac Total Area 123.5ac 99 ac ‘Green zone’ Medium to Light Industries Heavy Industries Light Industries • >100 companies (electronics, • >1,000 compan
Slide 33: Potential REIT
Potential REIT Setia 33
Slide 34: REIT- Potential
REIT- Potential • REIT would provide a vertical value chain for the business • Industrial estate would create pipeline for REIT • Review of Assets completed • Assessing the best options and timing for the listing 34
Slide 35: Summary
Summary We remain dedicated to expanding our diverse portfolio in both domestic and international markets despite the challenging global business environment 35
Slide 36: Setia Value Creation Levers
Setia Value Creation Levers Other potential value creation levers to achieve growth: PATANCI • Setia as a market player Eco >RM700mil • Developing new capabilities Industrial • Brand Leadership Parks Core Development & Township Operations Landbank Efficiency Management PAT: RM520mil Catalytic develo
Slide 37: What does success look like for S P Setia?
What does success look like for S P Setia? Creating sustainable communities Longer term (2029 goals) SP Setia today (YTD Q3 2024) 0.35x > RM 5 bil Net gearing Revenue RM 4.23 bil Revenue > RM 700 mil RM 8.8 bil PATANCI Total debt RM520mil Profit after tax Development & marketing of existing township
Slide 38: Thank You
Summary Setia SPICE Convention Centre, Penang Thank You Setia Fontaines, Pulau Pinang Setia Alaman Industrial Park, Klang, Selangor Sapphire bv the Gardens, Melbourne, Australia 38 38
Slide 39: Disclaimer
Disclaimer This presentation contains certain statements which are forward-looking in nature, which are subject to uncertainties and contingencies. Forward-looking statements may contain estimates and assumptions made by Setia’s Management after due inquiry, which are nevertheless subject to known a