Sime Darby Property Bhd. · MYX:SIMEPROP
Sime Darby Property Bhd — Q2 2023 Earnings Presentation
35 slides from Sime Darby Property Bhd's earnings presentation, August 2023
Slide 1: Q2 FY2023 Financial Results Analyst Briefing Presentation
Q2 FY2023 FINANCIAL RESULTS ANALYST BRIEFING PRESENTATION simedarbyproperty.com
Slide 2: Table of Contents
Table of Contents Page 1. H1 FY2023 Key Highlights 3–6 2. Financial Performance for Q2 FY2023 & H1 FY2023 7 – 13 3. Operational Performance for Q2 FY2023 & H1 FY2023 14 – 20 4. Battersea Power Station Updates 21 – 22 5. Land Bank Management & Activation Plan 23 – 24 6. Malaysian Economy & Sector Out
Slide 3: H1 FY2023 Financial Highlights
H1 FY2023 Financial Highlights • Revenue grew to RM1,374.3m on the back of sound performance from Property Development segment • Declared first interim dividend of 1.0 sen Financial Performance Snapshot Revenue Profit Before Tax PATAMI RM1,374.3 million RM212.2 million RM131.7 million Financial Posi
Slide 4: H1 FY2023 Operational Highlights
H1 FY2023 Operational Highlights • Sales achievement of RM1.5b; represents 65% of total sales target of RM2.3b • RM2.1b worth of diversified products launched in H1 FY2023; amounting to 70% of total GDV target of RM3.0b Among the successful launches during Q2 FY2023: Sales Snapshot Sales Achieved To
Slide 5: Q2 FY2023 Corporate Awards & Development Highlights
Q2 FY2023 Corporate Awards & Development Highlights • The Group won 28 awards in Q2 FY2023 bringing the total haul to an impressive 33 awards in H1 FY2023 including two major wins at the 2023 FIABCI World Prix d’Excellence award • Announced solar solutions for townships in support of Government’s Na
Slide 6: Solar Solutions for Township Developments
Solar Solutions for Township Developments SDP is well-positioned for solar energy generation and offtake at scale via rooftop solar and solar farm for our township energy demands 1 National Energy Transition Roadmap (“NETR”) 2 SDP Pilot Projects as part of the NETR Pilot Project Proposal #1: NETR Pa
Slide 7: Financial Performance
Financial Performance Second Quarter (Q2 FY2023) & First Six Months (H1 FY2023) ended 30 June 2023 7
Slide 8: Profit & Loss Performance
Profit & Loss Performance • Resilient top-line growth of +25.4% YoY mainly driven by Property Development segment • Gross profit margin stood above the Group’s target at 28% with all 3 business segments sustaining its profitability at PBT level albeit impacted by higher share of loss from joint vent
Slide 9: Segmental Revenue and PBT Analysis for Q2 & H1 FY2023
Segmental Revenue and PBT Analysis for Q2 & H1 FY2023 Revenue and PBT grew +27.3% and +5.9% respectively as the Group has successfully capitalised on market opportunities resulting in stronger sales contribution from its industrial and residential products Property Development (PD) QoQ YoY Revenue R
Slide 10: Segmental Revenue and PBT Analysis for Q2 & H1 FY2023
Segmental Revenue and PBT Analysis for Q2 & H1 FY2023 • IAM maintained its top-line performance at RM52.5m • However, PBT was affected by higher share of loss from joint ventures. Excluding this, PBT YoY stood at RM22.9m Investment & Asset Management (IAM) QoQ YoY Revenue Revenue 0.1% 26.2 26.3 0.4%
Slide 11: Segmental Revenue and PBT Analysis for Q2 & H1 FY2023
Segmental Revenue and PBT Analysis for Q2 & H1 FY2023 Leisure sustained its revenue growth and profitability in H1 FY2023 despite rising costs mainly from KLGCC’s golf course and clubhouse maintenance in preparation for LPGA’s tournament Leisure QoQ YoY Revenue Revenue 22.3 22.9 45.3 2.7% 9.9% 41.2
Slide 12: Cash and Debt as at 30 June 2023
Cash and Debt as at 30 June 2023 • Strong cashflow to fund future growth • Cash balance remained healthy at RM795.4m and low net gearing of 20.7% Cash & Cash Equivalents External Borrowings (RM mil) (RM mil) Net operating cash inflow remains positive: 30 June 2023 31 Dec 2022 • Positive net cash inf
Slide 13: Property Development Inventories as at 30 June 2023
Property Development Inventories as at 30 June 2023 • Completed inventories in carrying value amounting to RM237.7m (-14.3% vs 31 Dec 2022) is the lowest since demerger • In terms of GDV, completed and incoming completed inventories only comprised 16% of total inventories of RM3.4b Inventories in Ca
Slide 14: Operational Performance
Operational Performance Second Quarter (Q2 FY2023) & First Six Months (H1 FY2023) ended 30 June 2023 14
Slide 15: Sales Achieved by Product Type and Location
Sales Achieved by Product Type and Location • Industrial’s contribution remained as the top sales contributor (40% or RM597.0m of H1 FY2023 sales achieved) • Residential landed contributed 37% or RM557.3m driven by product offerings from City of Elmina & Bandar Bukit Raja H1 FY2023 Sales Achieved RM
Slide 16: Sales Performance Breakdown (by Product Type & Year)
Sales Performance Breakdown (by Product Type & Year) • Strong growth trajectory on the industrial segment with sales contribution increased to 40% in H1 FY2023 • Maintaining robust residential sales while diversifying our product offerings Sales Performance Breakdown by Product Type (%) Bookings as
Slide 17: Unbilled Sales as at 30 June 2023
Unbilled Sales as at 30 June 2023 Maintained a strong unbilled sales of RM3.8b or 1.5x cover ratio as of 30 June 2023, thus providing a strong revenue pipeline and earnings visibility for the Group RM3,771.6m as at 30 June 2023 4,000.0 2.0 1.7 By Property Development Type 3,500.0 1.8 Township Develo
Slide 18: Q2 FY2023 Residential Landed Launches
Q2 FY2023 Residential Landed Launches • RM422.4m worth of residential landed products was launched in Q2 FY2023 bringing the GDV launch to RM1.0b in H1 FY2023 which translates to 49% of the total GDV launched of RM2.1b • Average take-up rate of 80% as at 20 Aug 2023 The Eighth (Phase 2), Elmina West
Slide 19: Q2 FY2023 Residential High-Rise Launches
Q2 FY2023 Residential High-Rise Launches RM320.4m worth of residential high-rise products was launched in Q2 FY2023 bringing the GDV launch to RM623.3m in H1 FY2023 which translates to 30% of the total GDV launched of RM2.1b Serasi Residences, Putra Heights • Block 1 & 2 launched in Feb 2023 (926 un
Slide 20: Q2 FY2023 Industrial Launches
Q2 FY2023 Industrial Launches Elmina Business Park launched The Prestige Collection amounting to RM237.1m in GDV which consists of 24 units of twin factories and 7 units of detached factories; H1 FY2023 industrial launches amounting to RM366.3m The Prestige Collection, Elmina Business Park Detached
Slide 21: Battersea Power Station Updates
Battersea Power Station Updates 21
Slide 22: Battersea Power Station Updates
Battersea Power Station Updates • The completed Residential Phase 2 & 3A is at 96% and 97% take-up respectively, remaining inventories comprising mainly larger units • Latest apartment launch, KOA in Phase 3B achieved ~ 50% take-up rate • Commercial spaces in Phase 2 & 3A are 92% and 85% leased resp
Slide 23: Land Bank Management & Activation Plan
Land Bank Management & Activation Plan 23
Slide 24: Land Bank Management & Activation Update
Land Bank Management & Activation Update • Activated ~231 acres of land in H1 FY2023; ~66 acres from industrial land activation • Total remaining GDV of ~RM119b with ~15,434 acres remaining land bank Land Activation In acres FY2019 FY2020 FY2021 FY2022 H1 FY2023 PD land development & monetisation ~3
Slide 25: Malaysian Economy & Sector Outlook
Malaysian Economy & Sector Outlook 25
Slide 26: Malaysian Economy & Sector Outlook
Malaysian Economy & Sector Outlook • Accommodative & supportive economy in H1 FY2023; OPR maintained at 3%, inflation eased to 2.4% in June 2023 • Positive developments in the property sector have boosted market sentiment; and 7% YoY increased in loan approvals signaling robust property demand in H1
Slide 27: Strategy Moving Forward
Property i Strategy Moving Forward
Slide 28: Our Transformation Strategy: SHIFT25
Our Transformation Strategy: SHIFT25 On track towards transforming into a Real Estate Company with diversified and market resilient income stream PURPOSE To be a Value Multiplier for people, businesses, economies and the planet VISION Advancing real estate as a force for collective progress, in harm
Slide 29: FY2023 Guidance: Capitalising On Market Opportunities
FY2023 Guidance: Capitalising On Market Opportunities • Taking advantage of the strong market response to maximise Property Development growth over the next few years • The Group revised its sales & GDV launch target to RM2.7b and RM4.0b respectively RM4.0b RM2.7b 20% - 25% ≤ 0.5x ≤ 10% Revised Dive
Slide 30: H2 FY2023 Launch Plan
H2 FY2023 Launch Plan • Total of RM2.0b with 2,067 units to be launched in H2 FY2023 • ~41% from residential landed, ~38% residential high-rise & ~15% industrial in terms of GDV H2 FY2023 Units to be Launched: 2,067 | GDV to be Launched: RM2.0b H1 FY2023 Launched H2 FY2023 Planned Launches Product G
Slide 31: Investment Proposition
Property i Investment Proposition
Slide 32: Investment Proposition
Investment Proposition • Clarity of purpose, strengthened fundamentals and track record for growth • Towards greater income diversification and value multiplication Strong Financial Solid Balance Sheet Revenue Visibility Stable Return Position H1 FY2023 Sales H1 FY2023 Revenue Strong Cash Position R
Slide 33: Thank You | Q&A
Thank You | Q&A Sime Darby Property Berhad 197301002148 (15631-P) No. 2, Jalan PJU1A/7A Ara Damansara 47301, Petaling Jaya Selangor, Malaysia simedarbyproperty.com
Slide 34: Appendix
Property i Appendix
Slide 35: Remaining Land Bank & GDV (as at June 2023)
Remaining Land Bank & GDV (as at June 2023) • ~15,434 acres of land bank located strategically on the west coast of Peninsular Malaysia • GDV of ~RM119b to be unlocked for future earnings visibility Ongoing Developable Lands Future Developable Lands Non-Core Lands ~8,518 acres, RM85.6b ~5,229 acres,
Sime Darby Property Berhad — Q2 2023 Earnings Presentation on 6ix