Paramount Corp. Bhd. · MYX:PARAMON
Paramount Corp. Bhd — Shareholder Meeting (May 2016)
43 slides from Paramount Corp. Bhd's shareholder meeting presentation, May 25, 2016
Slide 1: 46th Annual General Meeting
46th Annual General Meeting 25 May 2016 1
Slide 2: FY2015 Performance Highlights
FY2015 Performance Highlights 2
Slide 3: 2015 Performance Highlights
2015 Performance Highlights Roll out of 5-year group Strategic Plan Paramount Property • Focus on real demand and leverage on our spectrum of offerings – 237 acres Salak Perdana land – 13.5 acres Batu Kawan land Paramount Education • Increase capabilities & capacity for tertiary – KDUUC new flagship
Slide 4: 2015 Revenue
2015 Revenue 13% growth (RM’Million) 576.0 600 510.0 1.0 2.5 500 147.9 131.1 400 300 200 427.1 376.4 100 0 2014 2015 Property Education Others 4
Slide 5: Profit before tax
Profit before tax 19% growth (RM’Million) 115.0 101.7 85.8 95.0 21.6 24.6 75.0 55.0 83.9 35.0 68.3 15.0 -5.0 -7.1 -3.8 2014 2015 Property Education Others 5
Slide 6: Revenue Contribution by Division (%)
Revenue Contribution by Division (%) 2015 2014 26% 26% 74% 74% Property Education Property Education 6
Slide 7: PBT Contribution by Division (%)
PBT Contribution by Division (%) 2015 2014 20% 26% 80% 74% Property Education Property Education 7
Slide 8: Group 2015 Financial Results
Group 2015 Financial Results 2015 2014 +/- % Revenue RM’Mil 576.0 510.0 66.0 13% Profit before tax RM’Mil 101.7 85.7 16.0 19% EBITDA RM’Mil 126.6 98.4 28.2 29% Profit net of tax RM’Mil 74.2 64.1 10.1 16% Earnings per share Sen 16.03 16.17 (0.14) -1% Dividend per share Sen 8.25 7.50 0.75 10% Net asse
Slide 9: Statement of Financial Position
Statement of Financial Position RM’000 31/12/2015 31/12/2014 Non-current assets 1,479,919 1,111,446 Current assets 450,304 540,745 Total assets 1,930,223 1,652,191 Current liabilities 377,484 409,997 Net current assets 72,820 130,748 Non-current liabilities 462,116 290,350 Total liabilities 839,600
Slide 10: Gross Dividend Per Share (sen) and Payout Ratio (%)
Gross Dividend Per Share (sen) and Payout Ratio (%) 12.00 60% 50% 51% 52% 47% 48% 10.00 50% 8.00 40% 6.00 30% 10.00 4.00 8.00 8.00 8.25 20% 7.50 2.00 10% - 0% 2011 2012 2013 2014 2015 10
Slide 11: Paramount Property
PARAMOUNT Paramount Property
Slide 12: Paramount Property
Paramount Property 13% growth in revenue, 23% growth in PBT 440.0 90.0 420.0 85.0 400.0 80.0 380.0 75.0 427.1 360.0 83.9 70.0 340.0 376.4 320.0 65.0 68.3 300.0 60.0 2014 2015 2014 2015 Revenue PBT 12
Slide 13: Paramount Property: Key Contributors
Paramount Property Key Contributors • RM440 million unbilled sales brought forward • Sales of 506 units, GDV of RM432 million • Different product mix at different price points to suit different investors • Record sales in Northern region >RM100 million • Strong sales of Utropolis Glenmarie condomini
Slide 14: Current Developments
Current Developments Breadth of products at different locations & different price points Kedah Sg. Petani Selangor Shah Alam Cyberjaya 14
Slide 15: Current developments: Sejati Residences, Cyberjaya
Current developments Sejati Residences, Cyberjaya • Low density – 249 units in 40 acres • QLASSIC rating of 81 marks vs norm of 70 • Award-winning Chengal House • Strong value for money proposition • Take up rate: 85% Unsold 2015 Launches 2015 Sales 2014 Sales Project Units b/f (Unit) (Value) (Unit)
Slide 16: Current developments: Greenwoods, Salak Perdana
Current developments Greenwoods, Salak Perdana • Affordably priced homes – below RM500K • Serving local, predominantly bumiputera market • Leverage on opening of Xiamen University, which is within 5 km radius, and ERL station • Take up rate: 56% Unsold 2015 Launches 2015 Sales 2014 Sales Project Uni
Slide 17: Current developments: Paramount Utropolis, Glenmarie
Current developments Paramount Utropolis, Glenmarie • Unique university metropolis township concept • Anchored by 10-acre KDU UC campus • 120,000 sq ft retail mall, Utropolis Marketplace • Appeals to investors, strong rental opportunities • Take up rate: 71% Unsold 2015 Launches 2015 Sales 2014 Sale
Slide 18: Current developments: Sekitar26 Business, Shah Alam
Current developments Sekitar26 Business, Shah Alam • Strategic location • Seamless integration with Sekitar26’s upcoming commercial components • Freehold industrial units designed for flexible usage • Large built-up • Take up rate: 58% Unsold 2015 Launches 2015 Sales 2014 Sales Project Units b/f (Un
Slide 19: Current developments: Bukit Banyan | Bandar Laguna Merbok
Current developments Bukit Banyan | Bandar Laguna Merbok • Strong brand name • Loyal following • Affordably priced • Riverside and forest themes • Gated and guarded • Take up rate: 71% Unsold 2015 Launches 2015 Sales 2014 Sales Project Units b/f (Unit) (Value) (Unit) (Value) (Unit) (Value) Bandar La
Slide 20: Paramount Education
Paramount Education 20
Slide 21: Paramount Education
Paramount Education 13% growth in revenue, 12% decline in PBT 150.0 30.0 145.0 25.0 140.0 20.0 135.0 15.0 147.9 24.6 21.6 130.0 10.0 125.0 131.1 5.0 120.0 0.0 2014 2015 2014 2015 Revenue PBT 21
Slide 22: Paramount Education: KDU UC & KDU PJ EBITDA
Paramount Education KDU UC & KDU PJ, EBITDA break-even by 2016 2014 2015 2016 (Budget) 0 0 -5 -5 -10 -12 -15 -15 -17 -20 -20 -25 LBT EBITDA Higher LBT: • Depreciation up RM6.8M (184%); • Interest cost up RM4.9M (100%) 22
Slide 23: Paramount Education: Key Contributors
Paramount Education Key Contributors • New KDUUC campus with state-of-the-art facilities at Utropolis Glenmarie, Shah Alam • Growth in student enrolment across all business units • Step up on marketing and distribution efforts including digital media • Launch new programmes that are more aligned wit
Slide 24: Primary & Secondary Schools
Primary & Secondary Schools Sri KDU Schools • 10th year of record profits • Offers option of either national or international curriculum • Reputed for holistic education • Dual Language Programme school – teaching of Math, Science and IT in English Total student enrolment 2015 2014 +/- Sri KDU 3,141
Slide 25: Tertiary Education: KDU Penang University College
Tertiary Education KDU Penang University College • Strong brand name in the north • Only college in Penang awarded 6-Star rating in MYQUEST 2014/2015 • Elevated to university college status • Launched four new market-driven programmes New student enrolment 2015 2014 +/- KDU Penang 1,209 1,234 -25 To
Slide 26: Tertiary Education: KDU University College
Tertiary Education KDU University College • Opening of new state-of- the-art campus • 612-bed student village • Launched five new market-driven programmes • Putra Brand Awards 2015 - Bronze New student enrolment 2015 2014 +/- KDU Utropolis & PJ Campus 1,748 1,515 +233 Total student enrolment 2015 20
Slide 27: 2016 Outlook
PARAMOUNT 2016 Outlook
Slide 28: 2016 Prospects
2016 Prospects • Muted economic environment – GDP growth forecasted between 4 - 4.5% • Weak consumer spending • Challenging property market • Intense competition in education industry 28
Slide 29: Property Division
Property Division • Affordable home segment will drive property sales • New launches for 2016 – GDV of RM770 Million – 34% commercial – 30% landed residential – 36% mix integrated / condominium – Different price points to suit different investors at different geographical locations 29
Slide 30: 2016 launch price ranges by project
RM330K – RM600K Bukit Banyan & Bandar Laguna Merbok, Sungai Petani RM430K – RM500K Greenwoods, Salak Perdana RM700K – RM900K Utropolis, Glenmarie RM1.3M – RM3M Sejati Residences, Cyberjaya RM5M Sekitar26, Shah Alam
Slide 31: Property Division
Property Division • Affordable home segment will drive property sales • New launches for 2016 – GDV of RM770 Million • Roll out of two new developments – Sekitar26 Enterprise ~ Second component of Sekitar26 integrated development, comprises 2- and 3-storey shops – Batu Kawan ~ Paramount Property’s e
Slide 32: New developments: Batu Kawan, Section 13, Sekitar26 Enterprise
Penang Batu Kawan, Penang Land Size : 28.8 acres Petaling Jaya Section 13, PJ Land Size : 5.2 acres Sekitar26 Enterprise, Shah Alam Land Size : 5 acres 32
Slide 33: Sekitar26 Enterprise, Shah Alam
Sekitar26 Enterprise, Shah Alam Second component of the Sekitar26 • Commencing in 2016, expected integrated development, an urban DNA completion in 2019 that reflects innovation with contemporary designs and a lush urban • 117 units of 2- and 3-storey shop offices landscape; a thriving place of busi
Slide 34: Utropolis, Batu Kawan
Utropolis, Batu Kawan Marks Paramount’s entry into Penang. • Integrated development comprising This university metropolis mirrors the residential apartments, 2- and 3-storey successful Paramount Utropolis in commercial lots and retail centre Glenmarie, Shah Alam; another showcase of Paramount’s stre
Slide 35: Section13, Petaling Jaya
Section13, Petaling Jaya Self-contained development promoting sustainability, with cascading water features, lush green landscape and open courtyards • 5.2 acres of leasehold land • Easy access via major highways as well as the LRT. Surrounded by the mature catchment of Petaling Jaya, Damansara Jaya
Slide 36: Total Landbank & GDV
Total Landbank & GDV Remaining Development Period Original Land Project GDV Size (Acre) (Million) Start End On going Developments Sekitar26 Business, Shah Alam 13.5 0 2013 2016 Paramount Utropolis, Glenmarie 11.8 274 2013 2021 Bandar Laguna Merbok, 500 14 1996 2018 Sungai Petani Bukit Banyan, Sungai
Slide 37: Total Landbank & GDV: Pipeline and Future Projects
Total Landbank & GDV Land Size GDV Development Period Project (Acre) (Million) Start End Projects in the Pipeline Sekitar26 Enterprise, Shah Alam 5 117 2016 2019 Batu Kawan, Penang 20.3 1,400 2016 2026 Section 13, Petaling Jaya 5.2 700 2016/2017 2022 Machang Bubuk, Penang 65 400 2017 2025 Jalan Goh
Slide 38: Education Division
Education Division Tertiary • Increase in number of programmes – Focus on Banking, Accounting & Finance where demand remains consistent • KDU Penang University College – Leverage University College status – Enhanced reputation with 6-Star MyQUEST rating – Commenced development of new campus in Batu
Slide 39: KDU Penang UC, Batu Kawan
KDU Penang UC, Batu Kawan This new flagship anchors the 28.8-acre • Completion in 2019 integrated development with a university metropolis concept. Designed to encourage learning beyond the classroom, it is the largest campus in Batu Kawan to date • Phase 1: 10-acre campus • 5,000 student capacity •
Slide 40: Sri KDU International School, Klang
Sri KDU International School, Klang Paramount Education brings the • Expected completion in 2018 successful Sri KDU brand to new markets with the opening of a new school in Klang. Offers the UK curriculum, backed by Sri KDU’s excellent reputation and strong value proposition • 5-acre campus • Approx
Slide 41: Q&A Session
PARAMOUNT Q&A Session
Slide 42: Thank You
Thank You For further information, please contact Group Corporate Communications at Paramount Corporation Berhad. www.pcb.my
Slide 43: Disclaimer
Disclaimer This presentation may contain forward-looking statements that involve risks and uncertainties. Actual figure performance, outcomes and results may differ materially from those expressed in forward-looking statements as a result of a number of risks, uncertainties and assumptions. All of t
Paramount Corporation Berhad — Shareholder Meeting (May 2016) on 6ix