Sime Darby Property Bhd. · MYX:SIMEPROP
Sime Darby Property Bhd — Q1 2022 Earnings Presentation
39 slides from Sime Darby Property Bhd's earnings presentation, May 25, 2022
Slide 1: Q1 FY2022 Financial Results Virtual Briefing Session
QI, FY202 FINANCIAL RESULTS VIRTUAL BRIEFING SESSION London UC simedarbyproperty.com
Slide 2: Table of Contents
Table of Contents Page 1. Q1 FY2022 Key Highlights 3–7 2. Financial Performance for Q1 FY2022 8– 14 3. Operational Performance for Q1 FY2022 and YTD 15 – 19 FY2022 4 Battersea Power Station Updates 20 – 22 5. Strategy Moving Forward 23 – 30 6. Investment Proposition 31 – 32 7. Appendices 36 – 39 The
Slide 3: Q1 FY2022 Key Highlights (Financial)
Q1 FY2022 Key Highlights (Financial) Revenue of RM480.3m and PBT of RM83.2m, translating into PATAMI of RM51.8m in Q1 FY2022 Financial Performance Snapshot Segment Revenue Leisure Revenue PBT PATAMI 19.3m (4.0%) RM480.3m RM83.2m RM51.8m Property Investment & Asset Development Financial Position Mana
Slide 4: Q1 FY2022 Key Highlights (Operational)
Q1 FY2022 Key Highlights (Operational) Achieved RM888.9m sales in Q1, industrial products as second largest sales contributor of ~31% after residential landed; On track to meet FY2022 sales target of RM2.6b Operational Highlights 100% 100% RM888.9m sales achieved with 908 units sold (~88% from FY202
Slide 5: YTD FY2022 Key Highlights (Industrial)
YTD FY2022 Key Highlights (Industrial) Industrial GDV has grown 75% across 2 years from RM307m (2019) to RM1.5b (cumulative as at Q1 FY2022); Secured 100% take-up rates for recent launches; A key growth engine for years to come Industrial Highlights CAGR of ~75% Launched ~RM1.5b Range of Products &
Slide 6: YTD FY2022 Key Highlights (Industrial)
YTD FY2022 Key Highlights (Industrial) Sime Darby Property and LOGOS Property JV secured preliminary commitments of 50% for first close of its industrial development fund; 177 acres to create ~8 mil sq. ft. in GLA Partnership with LOGOS Property E-Metro Logistics Park E-Metro Logistics Park Hub 1, ~
Slide 7: YTD FY2022 Key Highlights (Corporate)
YTD FY2022 Key Highlights (Corporate) Multiple awards and recognitions as well as milestones achieved; enhanced credentials as a testament to our sustainability commitment Key Corporate Awards & Recognitions Key Corporate Developments ▪ Ranks 77th on Top 100 Platinum Golf & Country Clubs of the Worl
Slide 8: Financial Performance
Financial Performance First Quarter ended 31 March 2022 (Q1 FY2022) City of Elmina, Shah Alam 8
Slide 9: Adoption of the Fair Value Model for Investment Properties
Adoption of the Fair Value Model for Investment Properties Effective 1 January 2022 the Group has changed its accounting policy on the measurement of investment properties (“IP”) from the cost model to the fair value model, applied retrospectively, and the effects of the change on the results for th
Slide 10: Profit & Loss Performance
Profit & Loss Performance Coming off a strong year end in FY2021; momentum to recover in upcoming quarters Impacted by lower contribution from Property Development (“PD”), mitigated by improved I&AM and Leisure businesses Q1 FY2021 Q4 FY2021 Key Takeaways RM mil Q1 FY2022 YoY (%) QoQ (%) (restated)
Slide 11: Segmental Revenue and PBT Analysis for Q1 FY2022
Segmental Revenue and PBT Analysis for Q1 FY2022 Property Development ("PD") remained as the key contributor to Group’s revenue at 90.7%, though its contribution was adversely impacted by lower site progress from major townships Property Development (PD) Q1 FY2022 Q1 FY2021 (Restated) Revenue RM435.
Slide 12: Segmental Revenue and PBT/(LBT) Analysis for Q1 FY2022
Segmental Revenue and PBT/(LBT) Analysis for Q1 FY2022 The uplift of lockdowns and resumption of business activities benefited our I&AM and Leisure segment; Both segments recorded YoY and QoQ profits Investment & Asset Management Leisure Q1 FY2022 Q1 FY2021 Q1 FY2022 Q1 FY2021 (Restated) (Restated)
Slide 13: Cash and Debt as at 31 March 2022
Cash and Debt as at 31 March 2022 Well-capitalised to support future growth – Strong cash balances; net gearing healthy at 31.0%; ~70% non-current debt & low average borrowing cost of 3.4%; Final injection for BPS post Q1 FY2022 (£15.2m) Cash & Cash Equivalents Group Debt (RM mil) (RM mil) Net opera
Slide 14: Property Development Inventories
Property Development Inventories Continued trend of completed inventories reducing to new lows and ongoing inventories increasing with increased development Inventories in Carrying Value Inventories in GDV & Units Completed 31 Mar 2022 31 Dec 2021 RM399.8m (13.1%) 289 units Incoming Completed RM5,75
Slide 15: Operational Performance
Operational Performance Q1 FY2022 & YTD FY2022 City of Elmina, Shah Alam 15
Slide 16: Sales Achieved by Product Type and Location
Sales Achieved by Product Type and Location By Product Type: Industrial products contributed ~31% of total sales, came second after residential landed By Location: Klang overtook Guthrie Corridor as second sales contributor, supported by its industrial products Q1 FY2022 Sales Achieved By Product Ty
Slide 17: Unbilled Sales as at 31 March 2022
Unbilled Sales as at 31 March 2022 Unbilled sales increased and recorded all-time high of RM2.9b or 1.4x cover ratio on the back of strong sales; Secured revenue visibility across the next two years 3,500.0 1.6 1.4 3,000.0 1.4 RM2,870.1m as at Q1 FY2022 1.2 By Property Development Type 1.2 2,500.0 1
Slide 18: Q1 FY2022 Launches
Q1 FY2022 Launches Launched RM383.5m GDV with 533 units – average take-up rate excluding statutory at ~98%; Residential Landed – 355 units @ RM226.2 million GDV Industrial – 24 units @ RM126.5 million GDV 100% 91% 100% Launch date: Feb 2022 Units launched: 10 units GDV: RM80.4m Nilai Impian Elmina E
Slide 19: FY2022 Launch Plan
FY2022 Launch Plan FY2022 sales target of RM2.6b supported by RM2.8b GDV launch plan which is on track with strategic product mix (~81% residential, ~16% industrial); RM803.4m GDV to be launched in Q2 Q2 FY2022 Planned Launches in FY2022 Units to be Launched: 1,007 | GDV to be Launched: RM803.4m 3,9
Slide 20: Battersea Power Station Updates
Battersea Power Station Updates City of Elmina, Shah Alam 20
Slide 21: Battersea Power Station
Battersea Power Station Handed over residential units in Switch House West, Switch House East and Boiler House; 84% of commercial spaces have been let at the Power Station Residential Sales Achieved: (Jan’21 to Mar’22): £469.4m Commercial Spaces Let as at Mar’22: 84% (Q1 FY22): £107.0m Handed over r
Slide 22: Battersea Power Station
Battersea Power Station Official opening of the Power Station in September 2022 Key Milestones in 2022 January March April June September (to September) (to June) (to September) Handover of Power Completion of Electric Boulevard Power Station residential Launching and commencement Official opening o
Slide 23: Strategy Moving Forward
Strategy Moving Forward
Slide 24: Malaysian Economy & Property Market Outlook
Malaysian Economy & Property Market Outlook 2022 GDP growth projection of between 5.3% and 6.3%; Bright outlook for industrial sector Malaysia’s Q1 2022 GDP grew at 5.0% (Q4 2021: 3.6%) Property Industry Propelled by : Growth is expected in 2022 but remain cautious of the industry’s • Expansion in r
Slide 25: Recap on SHIFT25 – A Real Estate Company by 2025
Recap on SHIFT25 – A Real Estate Company by 2025 Transforming from Pureplay Property Development towards a Real Estate Company Pure-Play Property Developer Real Estate Company Business Model Master Developer Community Builder Investment & Asset Manager • Township & Integrated Development • Lifestyle
Slide 26: Cost & Control to Protect Gross Margins in Property Development Business
Cost & Control to Protect Gross Margins in Property Development Business Critical enabler to weather looming pricing pressures and labour shortages Key Challenges: Rising material costs Labour shortages Vendors’ capabilities Supply-chain disruptions Intervention required to ensure projects are manag
Slide 27: Remaining Land bank & GDV as at December 2021
Remaining Land bank & GDV as at December 2021 ~15,400 acres of land bank located strategically on the west coast of Peninsular Malaysia; GDV of >RM100b to be unlocked for future earnings visibility Ongoing Developable Lands Future Developable Lands Non-Core Lands ~9,448 acres, RM89b ~3,507 acres, RM
Slide 28: Land Bank Management & Monetisation Plan (1/2)
Land Bank Management & Monetisation Plan (1/2) Moving forward, the pace of development necessitates a review of the balance option lands to replenish lands for new townships, particularly for industrial parks in Greater Klang Valley Land Activation 19,841 acres of 1. Land Option Agreements with Sime
Slide 29: Land Bank Management & Monetisation Plan (2/2)
Land Bank Management & Monetisation Plan (2/2) Land banking necessary to replenish lands & ensure sustainability of core Property Development business; Non-core land monetisation to recycle capital and fund expansion Land banking bucketed into (3) categories: 1 2 3 Lands to be acquired Lands held fo
Slide 30: Growth expectations for FY2022
Growth expectations for FY2022 Targeting a stronger financial year to maximise value creation for shareholders Unbilled Sales Fund Strategic Gross Profit Operating Completed Diversify product Sales Target / LTM PD Management Launches Margin Cash Flow Stock pipeline Revenue Platform Target <10% of Mo
Slide 31: Investment Proposition
Investment Proposition City of Elmina, Shah Alam 31
Slide 32: Investment Proposition
Investment Proposition Strengthened fundamentals and track record for growth; Towards greater income diversification Improved Financial 1 Resilient Financial Position Performance Solid Balance Sheet Revenue Visibility ^ as at 31 March 2022 * as at 8 May 2022 Q1 FY2022 Revenue Moderate Net Gearing Q1
Slide 33: End of Presentation | Q&A
End of Presentation | Q&A City of Elmina, Shah Alam 33
Slide 34: Q1 FY2022 Financial Results Virtual Briefing Session
QI, FY202 FINANCIAL RESULTS VIRTUAL BRIEFING SESSION London UC simedarbyproperty.com
Slide 35: 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 36: Appendices
= =m Appendices
Slide 37: Property Development Inventories (as at Q1 FY2022)
Property Development Inventories (as at Q1 FY2022) By Type – mainly from industrial products (~26%) followed by high-rise & landed products (~43%) Statutory RM164.7m (5.4%) Industrial Others RM799.9m (26.4%) RM165.3m (5.5%) Inventories in Commercial GDV RM271.1m (9.0%) RM3,026.7m Residential High- R
Slide 38: 4 Strategic Imperatives towards Being a Force for Good
4 Strategic Imperatives towards Being a Force for Good Finding the optimal balance between reducing our carbon footprint, social impact sustainable profit 38
Slide 39: Key Sustainability Achievements
Key Sustainability Achievements As at 31 December 2021, achieved/exceeded the targets for 13 out of 18 company-specific 2030 Sustainability Goals RATED AA+IS A constituent of MSCI ACWI SMALL CDP Inclusion (2018-current) Special Mention Award for ESG Reporting 1 CAP INDEX (2018-current) and 2 Rating
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