Ewi Capital Bhd · MYX:EWICAP
Ewi Capital Bhd — Eco World International Berhad — Shareholder Meeting (April 2023)
20 slides from Ewi Capital Bhd's shareholder meeting presentation, April 2023
Slide 1: Eco World International Bhd 9th Annual General Meeting
ECO WORLD INTERNATIONAL BHD 9TH ANNUAL GENERAL MEETING 1
Slide 2: Home Prices
HOME PRICES House price changes in 2022 • House prices in London improved 6.7% in 2022, reflecting the strong demand for housing and shortage of good-quality +6.7%1 homes in the city. London • Successive hikes of interest rates dampened house prices in Australia. House prices in Sydney and Melbourne
Slide 3: UK Construction Sector
UK CONSTRUCTION SECTOR UK construction output price index for • UK construction cost for new housing new housing (2015 =100) rose 21% between Dec 2020 and Dec 2022, outpacing the 10% increase in Average 10.0% p.a. increase between Dec 2020 to Dec 2022 London house prices and 4% increase in London re
Slide 4: Australia Construction Sector
AUSTRALIA CONSTRUCTION SECTOR Australia input price to house • Construction cost for housing in construction index (Dec 2011 =100) Australia rose 28% between Dec 2020 Average 13.1% p.a. and Dec 2022, higher than the 16% increase between Dec 2020 to Dec 2022 increase in house prices during this perio
Slide 5: Monetising Unsold Stocks
MONETISING UNSOLD STOCKS • Against the backdrop of rising construction costs and soft market conditions, the focus for FY2022 was on monetising our completed stocks for cash generation. • Attractive incentive packages were given to attract purchasers. • Our strategy enabled EW-Ballymore to fully rep
Slide 6: Sales Performance
SALES PERFORMANCE • RM2,158 million sales (RM2,457 million including reservations) RM2,158m achieved for FY2022, 57% higher than FY2021. • Improvement in sales across EW-Ballymore, EW London and Australia RM1,377m RM1,289m RM706m RM162m RM794m RM483m RM100m FY2021 FY2022 FY2021 FY2022 FY2021 FY2022
Slide 7: EWI Group Balance Sheet
EWI GROUP BALANCE SHEET • Turned into net cash position earlier than anticipated. RM173m Achieved net cash of RM173 million as at 31 Oct 2022 • Sufficient funds have been set aside to fully repay MTN of RM450 million by mid-FY2023 Oct-2021 Oct-2022 RM655m RM901m RM483m RM336m (RM564m) Oct-2021 Oct-2
Slide 8: EWI Group Profit & Loss
EWI GROUP PROFIT & LOSS • Operational losses in FY2022 despite better sales due to prolongation of RM16m development programmes and higher construction costs arising from Covid pandemic & weak sterling, and increased holding costs for unsold units. • Recognised impairment of RM92m as a result of inc
Slide 9: Strategic Focus for FY2023
STRATEGIC FOCUS FOR FY2023 £274 Cumulative Sales • Sales target of RM1.4 billion for FY2023 - no new launches, most of Remaining the remaining units are completed • Project development loans of EW-Ballymore & Australia fully paid down. Future sales to generate significant net cashflows for EWI • Tar
Slide 10: Conclusion
CONCLUSION • FY2022 sales of RM2.16 billion exceeded target of RM2 billion. • Losses reported due to higher operating costs and impairments. • Current market conditions are not conducive for new launches and making significant investments & land acquisitions. • Sales target of RM1.4 billion for FY20
Slide 11: Questions from MSWG
QUESTIONS FROM MSWG 1) The Board of Eco World International has set a sales target of RM1.4 billion for FY2023 with the intention of selling most of the completed units by October 2023. (Page 26 of IAR) a) Please provide a breakdown of the sales target of RM1.4 billion by region, location, and value
Slide 12: Questions from MSWG
QUESTIONS FROM MSWG 2) The Group’s inventory of completed properties stood at RM114.4 million in FY 2022 as compared to RM250.4 million in FY 2022, a reduction of RM136 million or 54.3%. (Page 117 of IAR) a) What is the value and location of the completed properties remaining unsold for more than 2
Slide 13: Questions from MSWG
QUESTIONS FROM MSWG c) How many units (and value) have been sold from the inventory of completed properties, for the UK and Australia properties respectively, from the last financial year till the end of February 2023? d) What are the marketing strategies that the Group will undertake to clear the i
Slide 14: Questions from MSWG
QUESTIONS FROM MSWG 3) As at 28 February 2022, West Village and Yarra One have sold 94% and 72% of the available completed properties units respectively. The Group has targeted to sell the remaining stocks by FY2022. (Minutes of 8th AGM). a) How many units and value of completed properties of West V
Slide 15: Questions from MSWG
QUESTIONS FROM MSWG c) What were the challenges faced by the Group in selling the completed properties in West Village and Yarra One in FY 2022? d) When is the Group expected to sell the remaining properties located in West Village and Yarra One? 15
Slide 16: Questions from MSWG
QUESTIONS FROM MSWG 4) The Group’s share of loss and total comprehensive loss in the statement of profit or loss and other comprehensive income for EW Ballymore, Be EW Investment and EW London DMCo were RM47.8 million, RM46.4 million and RM8.74 million respectively in FY 2022 as compared to the shar
Slide 17: Questions from MSWG
QUESTIONS FROM MSWG 5) The Group’s property projects are in UK and Australia. Does the Group have any plans to venture into other countries? If yes, please name the countries and the reasons for expansion into these countries. 17
Slide 18: Additional questions received after Q&A session
Additional questions received after Q&A session 1) How does EcoWorld International recognise sales? Response: Our sales are recognised upon signing of sales and purchase agreements. 2) How much are the corporate overhead costs and whether there is a plan to acquire the remaining stakes in JVs not cu
Slide 19: Additional questions received after Q&A session
Additional questions received after Q&A session 4) Does the plan to distribute excess cash to shareholders requires shareholders’ approval? Response: We are working with advisers on the proposal and further details which includes the requirement to seek shareholders' approval will be announced once
Slide 20: Thank You
THANK YOU INTERNATIONAL
Eco World International Berhad — Shareholder Meeting (April 2023) on 6ix