Eco World Development Group Bhd. · MYX:ECOWLD
Eco World Development Group Bhd — FY2023 Earnings Presentation
30 slides from Eco World Development Group Bhd's earnings presentation, December 2023
Slide 1: EcoWorld Malaysia 4Q FY2023 Corporate Presentation
ECOWORLD MALAYSIA 4Q FY2023 CORPORATE PRESENTATION DEC 2023
Slide 2: Growth in Revenue Pillars & Projects
GROWTH IN REVENUE PILLARS & PROJECTS IN KLANG VALLEY, ISKANDAR MALAYSIA & PENANG REVENUE PILLARS DEVELOPMENT PROJECTS Eco Townships Residential Homes Eco Rise High-rise Residential Eco Hubs Shop, Strata Office & Retail Spaces Eco Business Parks Industrial
Slide 3: Consistently Strong Execution & Delivery
CONSISTENTLY STRONG EXECUTION & DELIVERY TRACK RECORD OVER 10 YEARS ACROSS 4 REVENUE PILLARS 27,078 units delivered to-date 16,607 17,333 5,563 ECO TOWNSHIP - LANDED RESIDENCES ECO RISE - VERTICAL HOMES 8,521 1,950 Eco Central Eco South Eco North An average of 3,385 units completed 2,802 1,380 per a
Slide 4: FY2023 Sales Target Achieved
FY2023 SALES TARGET ACHIEVED INCREASINGLY SUBSTANTIAL & DIVERSIFIED REVENUE PILLARS RM31.9 billion sales achieved in 10 years • Strategic efforts to evolve & expand business from roots as township developer have resulted in EcoWorld Malaysia consistently meeting & exceeding Sales (RM’mil) annual sal
Slide 5: FY2023 Sales by Revenue Pillars
FY2023 SALES BY REVENUE PILLARS STRONG CONTRIBUTION FROM EVERY MARKET SEGMENT • Eco Business Parks recorded RM1.04 bil in FY2023, the highest p.a. sales ever achieved, with a balanced mix of RM 1,042 m ready-built factories, customised built-to-suit industrial 29% units and industrial land sales RM
Slide 6: Eco Business Parks Power Ahead
ECO BUSINESS PARKS POWER AHEAD FUELLED BY GROWTH IN LOCAL & INTERNATIONAL DEMAND ECO BUSINESS PARK SALES (RM’mil) 138% of FY2022 Sales 4-year CAGR: 68% 1,042 70% of FY2023 industrial sales 753 30% from Iskandar Malaysia 40% 482 Group’s ability to serve the needs of large 37% multinationals + local m
Slide 7: Eco Business Parks Clientele
ECO BUSINESS PARKS CLIENTELE MORE THAN 1,100 LOCAL + INTERNATIONAL INDUSTRIALISTS Production Warehouse Office/ Central Kitchen
Slide 8: Eco Business Parks Built-to-Suit Factories
ECO BUSINESS PARKS BUILT-TO-SUIT FACTORIES TARGETED INDUSTRIES & WELL-ESTABLISHED CLIENTELE 27-acre Industrial 16-acre Industrial Land 92-acre Industrial Land EB frozen food Sdn Bhd Baosteel Can Making (M) Sdn Bhd Haitian Machinery (Malaysia) Sdn Bhd Soybean products and frozen food company Aluminum
Slide 9: Eco Hubs - Increasingly Matured Pillar
ECO HUBS - INCREASINGLY MATURED PILLAR ENHANCING LIVEABILITY & VIBRANCY OF ECOWORLD TOWNSHIPS Eco Majestic City RM515M Commercial units sold in FY2023 115% of FY2022 Sales FY2023 New Launches Anchor Tenants Hana Square | Eco Ardence | 98% sold Silver Square |Eco Majestic | 78% sold EcoBiz III |Eco T
Slide 10: Growth in Eco Hubs
GROWTH IN ECO HUBS EXPANDING SIZE OF COMMERCIAL & LEASING PORTFOLIO Estimated Total NLA of 2.0 mil sq ft Commercial Space Available (sq ft) Yearly Cumul ative 1,212,259 214,281 235,980 150,672 140,575 23,331 - 2018 2019 2020 2021 2022 2023 2024 • Ardence • Sanctuary •Grandeur • Eco Majestic • Mitsui
Slide 11: A New Eco Hubs Concept
A NEW ECO HUBS CONCEPT REVAMPING BBCC COMMERCIAL & RETAIL SPACE Coming soon in 2024! Transforming BBCC Sales Gallery into a “Eatertainment” F&B Hub
Slide 12: Eco Townships - FY2023
ECO TOWNSHIPS - FY2023 FOCUS ON UPGRADER PRODUCTS TO MEET HIGH DEMAND Eco Central Eco South Eco North • Bohemia @ Eco Sanctuary | Cluster Semi-D & Semi-D • The Commune @ Eco Botanic 2 | Cluster Homes • Camdon @ Eco Horizon • Eden @ Eco Sanctuary | Co-Home • Aranya, Caia, Aria & Nora @ Eco Tropics| D
Slide 13: Eco Rise – Accelerated Growth Ahead
ECO RISE – ACCELERATED GROWTH AHEAD 2 LAUNCHES IN FY2023 + MORE TO COME! Target Completion in 1Q 2024 First Sold Out Sold Out launched in Sept 2020 Klang Valley Iskandar Malaysia Penang NEW + Upcoming Launches • Below RM500k • 900 psf | 1,000 psf • Semi-furnished • Situated in matured township with
Slide 14: Landbanking Updates
Sustainable Growth LANDBANKING UPDATES
Slide 15: New Land Acquisition: EBP VI in Iskandar Malaysia
NEW LAND ACQUISITION 403.78 ACRES LAND FOR EBP VI IN ISKANDAR MALAYSIA 403.78 acres Freehold in Kulai, Iskandar Malaysia Estimated GDV RM1.58 Billion Light & Medium Industrial Total Industrial Landbank 2,416 acres (1,176 acres remaining) Total Industrial GDV RM10 Billion (RM5.8 billion remaining)
Slide 16: New Land Acquisition: Klang Valley
NEW LAND ACQUISITION 6.92 ACRES LAND FOR IN KLANG VALLEY 6.92 acres Key USPs all in place: Freehold land in Kajang, Selangor • Located within matured township of Tropicana Heights Estimated GDV RM500 million • Ready amenities with school, for duduk serviced apartment hospital, f&b and retail nearby
Slide 17: Future Development: Remaining Landbank
FUTURE DEVELOPMENT REMAINING LANDBANK AS AT 31 OCT 2023 Eco North 214 acres 6% Eco South 3,400 acres Eco Central 1,377 acres Remaining 1,809 acres 41% Landbank 53% Eco Eco Eco Eco Future Landbanking updates: Townships Rise Hubs Business Parks Development +411 acres landbank in FY2023 35% 12% 14% 29%
Slide 18: Financial Highlights 4Q FY2023
FINANCIAL HIGHLIGHTS 4Q FY2023
Slide 19: FY2023 Financials
FINANCIAL UPDATES FY2023 FINANCIALS Revenue Gross Profit 9% 10% 2,500 RM 2,044 mil RM 2,227 mil 600 RM 490 mil RM 539 mil Malaysia JVs RM117 mil 500 from share of results from Eco Grandeur, EBP V, 2,000 400 Eco Ardence, BBCC & Eco Horizon 1,500 300 1,000 200 500 100 - FY2022 FY2023 - FY2022 FY2023 E
Slide 20: Financial Updates
FINANCIAL UPDATES FY2023 FINANCIALS 1% 20% RM1.5 billion recorded 300 RM 281 mil RM 285 mil 200 RM 189 mil in 10 years 180 RM 157 mil 250 160 200 140 150 120 100 285 80 100 60 200 50 40 20 140 - - FY2022 FY2023 FY2022 FY2023 54 PAT (M’sian Operations) excluding Overall PAT increased by 20% after EWI
Slide 21: Investment in EcoWorld International
27% INVESTMENT IN ECOWORLD INTERNATIONAL DIVIDEND DISTRIBUTION MODE TO CONTINUE IN FY2024 Sales Recorded (FY2023) RM1.18 bil • Distributed RM792 mil in Sept 2023 + declared a final dividend of RM144 mil (6 sen) in 4Q FY2023. FY2023 • EcoWorld Malaysia’s share of FY2023 dividends = RM214 mil (receive
Slide 22: Future Revenue
FUTURE REVENUE AS AT 31 OCT 2023 EcoWorld Malaysia Future revenue from locked-in sales RM3.49 billion RM3.44 B + This provides: EcoWorld 1) Clear near & mid-term earnings visibility International 2) Strong cash-flow certainty RM0.04 B
Slide 23: Strong Balance Sheet + Healthy Cashflow
STRONG BALANCE SHEET + HEALTHY CASHFLOW LOW NET GEARING Total Borrowings (RM’mil) Net Gearing (RM) 3,317 0.62 2,880 2,805 2,541 0.44 0.31 0.25 FY2020 FY2021 FY2022 FY2023 FY2020 FY2021 FY2022 FY2023 Total Cash & Bank Balances (RM’mil) NA per Share (RM) 1,336 1,357 1.62 1.62 1.61 785 456 1.58 FY2020
Slide 24: Commitment to Dividend Payment
COMMITMENT TO DIVIDEND PAYMENT FY2023 FINANCIALS Stronger Balance Sheet & improved gearing position 2 sen Final dividend declared in enabled dividend payments to continue in FY2023 Dividend Per Share 4Q FY2023 2020 2021 2022 2023 1Q - - - - 6 sen Total dividends declared 2Q 3Q 4Q - - 2.00 2.00 - 2.0
Slide 25: FY2024 Sales Target
FY2024 SALES TARGET STRONG CASH GENERATION + SUSTAINABLE GROWTH Target to improve returns from RM3.5 B valuable landbank via higher margin or higher yield per sq ft of land developed & continue to Sales target set for sustain good dividends to FY2024 shareholders Eco Townships Eco Rise Eco Hubs Eco
Slide 26: EcoWorld
ECOWoRLD
Slide 27: Climate Change Policy
Sustainable Growth CLIMATE CHANGE POLICY
Slide 28: Net Zero by 2050
NET ZERO BY 2050 CLIMATE CHANGE POLICY Climate Change Adaptation Climate Change Mitigation • For Scope 2 GHG emissions: • 20% reduction by 2025 • Assess climate risks and opportunities and • 30% reduction by 2030 integrate into Risk Management (from FY2019 baseline) • Engagement with suppliers and c
Slide 29: Net Zero by 2050: Decarbonisation Plan
NET ZERO BY 2050 DECARBONISATION PLAN EcoWorld’s Decarbonisation Plan Renewable Energy – Solarise our offices and developments to use clean energy Electrify Fleet – Invest in electric vehicles to lower emissions from transport Green Habits – Continue responsible use of energy & reduce waste generati
Slide 30: Thank You
THANK YOU ECOWORLD
Eco World Development Group Berhad — FY2023 Earnings Presentation on 6ix