Sime Darby Property Bhd. · MYX:SIMEPROP
Sime Darby Property Bhd — Q3 2022 Earnings Presentation
35 slides from Sime Darby Property Bhd's earnings presentation, Nov 30, 2022
Slide 1: Q3 FY2022 Financial Results Analyst Briefing Presentation
Q3 FY2022 FINANCIAL RESULTS ANALYST BRIEFING PRESENTATION simedarbyproperty.com
Slide 2: Table of Contents
Table of Contents Page 1. 9M FY2022 Key Highlights 3–6 2. Financial Performance for Q3 FY2022 & 9M FY2022 7 – 12 3. Operational Performance for Q3 FY2022 & 9M FY2022 13 – 19 4. Battersea Power Station Updates 20 – 22 5. Land Bank Management & Monetisation Plan 23 – 25 6. Malaysian Economy & Sector O
Slide 3: 9M FY2022 Financial Highlights
9M FY2022 Financial Highlights Commendable performance recorded as profit doubles in 9M FY2022; Well positioned to achieve financial and operational targets for the year Financial Performance Snapshot Revenue 21% Profit Before Tax 90% PATAMI >100% RM1,785.2 million RM323.1 million RM212.7 million (9
Slide 4: 9M FY2022 Operational Highlights
9M FY2022 Operational Highlights Surpassed FY2022 sales target with RM2.7 billion sales achieved in 9 months; Strong sales momentum in Q3 FY2022 of RM808.3 million continued to strengthen the Group’s resilient performance Sales Snapshot Sales Achieved 43% Total Bookings 24% Unbilled Sales 67% RM2.7
Slide 5: Q3 FY2022 Corporate Awards & Development Highlights
Q3 FY2022 Corporate Awards & Development Highlights SD Property has been recognised as Top 10 Property Developer in Malaysia for the 11th year running at The Edge Malaysia Top Property Developers Award and 10th win at the BCI Asia Awards Key Corporate Awards & Recognitions Key Corporate Developments
Slide 6: Highlights on Battersea Power Station Opening Ceremony
Highlights on Battersea Power Station Opening Ceremony Battersea Power Station officially launched to public on 14 October 2022 and welcomed more than a quarter of a million visitors during its opening weekend Yang di-Pertuan Agong Al-Sultan Abdullah Ri’ayatuddin Al-Mustafa Billah Shah Ibni Almarhum
Slide 7: Financial Performance
Financial Performance Third Quarter (Q3 FY2022) & Nine Months (9M FY2022) ended 30 September 2022 City of Elmina, Shah Alam 7
Slide 8: Profit & Loss Performance
Profit & Loss Performance Revenue of RM1.8b in 9M FY2022 grew +21% against preceding year; while PBT soared to RM323.1m (+90% YoY) strengthened by continued profitability from all business segments Q3 FY2021 Q2 FY2022 9M FY2021 RM mil Q3 FY2022 YoY % QoQ % 9M FY2022 YoY % (restated) (restated) (rest
Slide 9: Segmental Revenue and PBT Analysis for 9M FY2022
Segmental Revenue and PBT Analysis for 9M FY2022 Property Development segment contributed to higher revenue and PBT by 19% and 72%, driven by positive sales momentum and stronger activation Property Development (PD) 9M FY2022 9M FY2021 Revenue RM1,643.1m RM1,377.3m 19.3% PBT RM270.3m RM157.0m 72.1%
Slide 10: Segmental Revenue and PBT Analysis for 9M FY2022
Segmental Revenue and PBT Analysis for 9M FY2022 I&AM recorded stronger performance via contribution from retail segment following the sector’s rebound; Further improvement seen in Leisure segment’s performance as PBT increased >100% Investment & Asset Management Leisure 9M FY2022 H1FY2022 9M FY2021
Slide 11: Cash and Debt as at 30 September 2022
Cash and Debt as at 30 September 2022 Well-capitalised for growth; Healthy cash balances of ~RM876m with positive operating cash flow generated from improving sales and moderate net gearing of 28.2% as at 9M FY2022 (21.5% without BPS-related borrowings) Cash & Cash Equivalents Group Debt (RM mil) (R
Slide 12: Property Development Inventories as at 30 September 2022
Property Development Inventories as at 30 September 2022 • Total inventories (carrying value) reduced by ~6% or RM322m in 9M FY2022 predominantly driven by landbank activation (via new launches and pace of development); • Total inventories (GDV) of RM2.9b remain at manageable proportions with 57% co
Slide 13: Operational Performance
Operational Performance Third Quarter (Q3 FY2022) & Nine Months (9M FY2022) ended 30 September 2022 City of Elmina, Shah Alam 13
Slide 14: Sales Achieved by Product Type and Location
Sales Achieved by Product Type and Location Residential landed product type in the City of Elmina, Bandar Bukit Raja (“BBR”) & Serenia City remained as the key sales contributor, followed by residential high-rise in KLGCC Resort 9M FY2022 Sales Achieved RM2,746.0m By Product Type By Location (RM mil
Slide 15: Sales Performance Breakdown (by Year/Quarter)
Sales Performance Breakdown (by Year/Quarter) 9M FY2022 sales of RM2.7b is 43% higher YoY and outperformed pre-pandemic level (9M FY2019) by 22%; Surpassed FY2022 sales target of RM2.6b in 9 months 49% YoY 43% YoY RM3.1b (vs 9M FY2021) Bookings as at 6 Nov RM3.0b RM2.1 billion RM2.7b 884 37% YoY Sal
Slide 16: Unbilled Sales as at 30 September 2022
Unbilled Sales as at 30 September 2022 Unbilled sales recorded at RM3.5b or 1.7x cover ratio on the back of strong sales momentum in Q3 FY2022; Secured earnings visibility across the next two years RM3,538.8m as at 9M FY2022 9M FY2021: RM2,084.6m 4,000.0 1.7 1.8 By Property Development Type 3,500.0
Slide 17: FY2022 Launch Pipeline
FY2022 Launch Pipeline Launched ~RM2.1b worth of products in 9M FY2022 achieving 90% average take-up rate for all launches; Remaining ~RM504m GDV to be launched in the final quarter with the return of residential high-rise products 9M FY2022 Units Launched: 1,520 | GDV Launched: RM2,121.6m | Avg. Ta
Slide 18: Q3 FY2022 Industrial Launches
Q3 FY2022 Industrial Launches Industrial products contributed 65% of Q3 FY2022 launches with exceptional take-up rates, supported by the on-going industrial-driven “We’re the Go-To Experts” campaign Twin Factories 3, Elmina Business Park 100% Plot 4A & 4B, Hamilton Industrial Park 2 90% 24 units | R
Slide 19: Q3 FY2022 Residential Launches
Q3 FY2022 Residential Launches Successful launch of residential products in Serenia City & the final stage of City of Elmina’s third generation Signature Series, Elmina Green 6 which have garnered commendable average take-up rates of >80% Serenia Anira 1 & 3, Serenia City 88% 200 units | RM145.5m |
Slide 20: Battersea Power Station Updates
Battersea Power Station Updates
Slide 21: Residential Sales & Leasing Update (YTD September)
Residential Sales & Leasing Update (YTD September) Residential sales at the Power Station & Electric Boulevard totaled £247m as at 9M FY2022; New exciting offerings following its opening anchored by Lift 109 experience & the upcoming Art’otel Phase 2: The Power Station Phase 3A: The Electric Bouleva
Slide 22: Residential & Commercial Launches: Koa & 50 Electric Boulevard
Residential & Commercial Launches: Koa & 50 Electric Boulevard Koa marked the first release of new residences at Battersea Power Station since 2014 with encouraging market responses and interests to-date; Recently launched commercial office space, 50 Electric Boulevard Key Highlights • Launched Koa
Slide 23: Land Bank Management and Monetisation Plan
Land Bank Management and Monetisation Plan
Slide 24: Remaining Land Bank & GDV (as at September 2022)
Remaining Land Bank & GDV (as at September 2022) ~14,800 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 ~9,065 acres, RM87b ~3,522 acres,
Slide 25: Land Bank Management & Monetisation Plan
Land Bank Management & Monetisation Plan Land development and monetisation continue to progress at a high rate as at 9M FY2022; Non-core land disposals gaining traction; additional proceeds to be utilised to fund new land acquisitions Land Activation Newly Activated Industrial Townships In acres 9M
Slide 26: Malaysian Economy & Sector Outlook
Malaysian Economy & Sector Outlook
Slide 27: Malaysian Economy & Sector Outlook
Malaysian Economy & Sector Outlook Malaysian economy to remain resilient with 4% - 5% growth forecasted in FY2023; Mixed outlook for the property sector as market headwinds and uncertainties continue to persist Malaysia’s Q3 2022 GDP grew at 14.2% YoY (Q2 2022: 8.9%) Key Challenges affecting Propert
Slide 28: Investment Proposition
Investment Proposition 28
Slide 29: Growth Expectations for FY2022
Growth Expectations for FY2022 Well positioned to achieve financial and operational performance for the year to deliver greater returns for shareholders despite market headwinds Profitability Growth Earnings Visibility & Financial Strength Unlocking Value & Diversification Sales & Launches Unbilled
Slide 30: Investment Proposition
Investment Proposition Clarity of purpose, strengthened fundamentals and track record for growth; Towards greater income diversification and value multiplication Improved Financial Solid Balance Sheet Revenue Visibility Stable Return Position Strong 9M FY2022 Sales Committed to dividend payout of >2
Slide 31: End of Presentation | Q&A
End of Presentation | Q&A City of Elmina, Shah Alam 31
Slide 32: 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 33: Appendices
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Slide 34: Property Development Inventories (as at Q3 FY2022)
Property Development Inventories (as at Q3 FY2022) By Type – mainly from industrial products (~61%) followed by residential landed products (~17%) Statutory Others RM114.0m RM85.1m (2.9%) (3.9%) Residential High-Rise RM206.3m Point 1 (6.9%) Commercial RM262.8m Inventories in Industrial (8.8%) GDV RM
Slide 35: 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 3 Sukuk Musharakah Programme 1 CAP INDEX
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