Ewi Capital Bhd · MYX:EWICAP
Ewi Capital Bhd — EcoWorld International Berhad — Shareholder Meeting (May 2022)
15 slides from Ewi Capital Bhd's shareholder meeting presentation, May 2022
Slide 1: Together We Create
—— GETHER eCREATE
Slide 2: London Market
LONDON MARKET House Price Index1 • House prices in Outer London grew 7.1% in the 12 Oct-21, months to Oct 2021 while that in Inner London 134.4 increased 3.2% in the same period Oct-20, 125.4 • The healthy house price trend reflects steady domestic demand. Overseas demand remained weak as a result o
Slide 3: Australia Market
AUSTRALIA MARKET Changes in apartment unit value (Oct 2021 vs Oct 2020) • Broad recovery in prices across all capital cities, driven by strong domestic demand 23.20% • Prices supported by low interest rates & lack of supply 14.10% 12.95% 13.55% • Border closure & geopolitical friction limit the 10.3
Slide 4: Key Risks in the Near Term
KEY RISKS IN THE NEAR TERM Rising Inflation & Rising Interest Rates & Prolonged Geopolitical Movement Restrictions & Lower Real Income Borrowing Costs Tensions Lockdowns in Key Markets
Slide 5: Sales Acceleration
SALES ACCELERATION Given the uncertain timing of recovery of the real estate markets, the Group aims to: • Accelerate sales of completed stocks (mainly in EW-Ballymore JV & Australia) by increasing incentives to purchasers and sales agents • Minimise holding costs of unsold units • Prioritise cash g
Slide 6: Sales Performance
SALES PERFORMANCE RM1,382m RM1,377m • Incentives provided to purchasers and sales agents sustained sales performance in FY2021 • Decent growth in local sales & sustained interest in Embassy Gardens • Strong rebound in Australian sales despite multiple lockdowns implemented during FY2021 • EWI record
Slide 7: Profit & Loss
PROFIT & LOSS • Lower revenue as a result of fewer handovers by Australian projects • Higher gross profits arising from handover of Yarra One units with better margins RM83m • Lower share of results from JVs due to: • Additional incentives & higher commission to agents to accelerate sales of complet
Slide 8: Gearing
GEARING RM949m • Focus on cash generation enabled total dividends of 6 sen paid to shareholders in FY2021 • Net debt ratio reduced further to only 0.20x as at 31 October 2021 • Remaining borrowings will be substantially paid off by FY22-23 • Cash balance of RM336 million at EWI & subsidiaries and RM
Slide 9: FY2022 Sales Target
FY2022 SALES TARGET Moving ahead RM2.0 B Sales target set for FY2022 45% higher than FY2021 Sales Achieved Focus on Cash Generation with aim to make further distributions to shareholders after setting aside a portion of the capital recouped from completed projects to be reinvested for future growth
Slide 10: Project Updates: EcoWorld-Ballymore
PROJECT UPDATES EcoWorld-Ballymore • All three projects fully completed by FY2022 • Key works remaining include: • Penthouse units in Embassy Gardens • Commercial block in London City Island • Target 100% sale of all units in the next 2-3 years • Substantial cash to be generated from sale of complet
Slide 11: Project Updates: EcoWorld London
PROJECT UPDATES EcoWorld London • All active phases completed by FY23 • Sales proceeds to fund future phases & potential acquisition of new development sites • Upcoming launches: • Oxbow (Phase 4) • Woking • Focus on London mid-market OMS & BtR segments will not require substantial capital investmen
Slide 12: Project Updates: Australia
PROJECT UPDATES Australia • West Village and Yarra One are fully completed • West Village is 94% sold while Yarra One is 72% sold as at 28 Feb 2022 • Aim to sell out all units by FY2022
Slide 13: Project Updates: ESG Initiatives
PROJECT UPDATES ESG INITIATIVES • Key achievements include: • Sustainable designs incorporated in building plans • 100% of construction waste of UK projects diverted from landfill in FY2021 • Began tracking direct greenhouse gas emissions in FY2021 • 90% of EWL customers surveyed in 2020 said they w
Slide 14: Conclusion
CONCLUSION • Sales target of RM2 billion + realization of effective future revenue of RM1.2 billion (as at 31 October 2021) expected to generate significant revenue and cashflows in FY2022 • Real estate markets in UK & Australia were challenging in FY2021 but FY2022 expected to be better especially
Slide 15: Thank You
EcoWorld International Berhad — Shareholder Meeting (May 2022) on 6ix