Osk Holdings Bhd. · MYX:OSK
Osk Holdings Bhd — Q1 2023 Earnings Presentation
71 slides from Osk Holdings Bhd's earnings presentation, 2023
Slide 1: OSK Holdings Berhad Investor Relations Q1 FY2023
OSK Holdings Berhad Investor Relations Q1 FY2023 Strictly private & confidential. For discussion purposes only.
Slide 2: Disclaimer
Disclaimer • This presentation/document (“presentation”) has been prepared by OSK Holdings Berhad and its subsidiaries (“OSK Group”). All information contained in this presentation is published for reference only. Expressions of opinion, forecasts or intentions contained herein are subject to change
Slide 3: Content
01 Group Financial Performance Review 02 Group Business Updates Content 03 Group Sustainability Blueprint 04 ESG Initiatives
Slide 4: Group Financial Performance Review
01 Group Financial Performance Review Windmill Upon Hills, Genting
Slide 5: Overview
Overview • Our Group has 5 core businesses, namely Financial Services, Property, Construction, Industries and Hospitality. • The main PBT contributor to the Group is Financial Services at 74% (69%) followed by Property at 21% (27%). • Although each business unit differs in revenue and profit size, e
Slide 6: Financial Performance
Financial Performance 1Q23 1Q22 FY22 FY21 RM’million (restated) Revenue 333.2 306.5 1,320.9 1,126.1 Profit before tax 126.0 96.7 488.0 464.6 Core profit before tax 126.0 96.7 481.1 469.2 Share of results 87.6 56.3 284.0 295.4 Profit after tax 115.8 84.8 429.8 401.8 Profit attributable to Owners of t
Slide 7: 5-Year Segment Performance
5-Year Segment Performance RM’mil 5 Years Segmental PBT (RM’million) 550.0 464.6 488.0 470.6 416.7 6.9 450.0 395.4 93.4 234.5 230.4 350.0 297.1 320.9 250.0 168.3 150.0 206.1 237.1 105.3 177.7 143.8 50.0 8.5 12.1 25.9 27.8 1.4 1.7 15.0 2.3 8.6 (9.6) (6.3) (23.9) 10.3 (15.9) (0.9) (38.6) (4.6) (50.0)
Slide 8: 5-Year Financial Performance (Cont'd)
5-Year Financial Performance (Cont’d) RM’mil RM’mil PBT 5 Years Group Revenue, Reported PBT and Core PBT (RM’million) Revenue 1,400 1,321 1,204 1,208 1,000 1,126 1,200 1,086 1,000 800 800 600 469 488 471 455 600 395 471 481 400 465 417 400 302 200 200 - - FY2018 FY2019 FY2020 FY2021 FY2022 Reported
Slide 9: Strong Financial Position as at 31.3.2023
Strong Financial Position as at 31.3.2023 RM9.7b RM5.8b RM2.83 RM2.9b Total Assets Shareholders’ Funds Net Assets per Share Total Debts (2022: RM9.7b) (2022: RM5.7b) (2022: RM2.76) (2022: RM3.0b) RM2.2b 4.1 years RM1.1b 0.151 Net Debts Average Debt Cash: RM717m & Net Gearing (2022: RM2.3b) Maturity
Slide 10: Improved Shareholders' Fund and Total Assets
Improved Shareholders’ Fund and Total Assets Shareholders’ Fund and Total Assets (RM’million) • Total assets reduced slightly to RM9.67b in 3M23 from RM9.68b in FY22 mainly due to the collection of Capital 9,682 9,675 Financing portfolio. 9,221 8,645 • Majority of the Group’s assets mainly in the Pr
Slide 11: Debt Maturity Profile (As at 31 March 2023)
Debt Maturity Profile (As at 31 March 2023) 11
Slide 12: Effective Cash Flow Management
Effective Cash Flow Management 1Q23 movements: Generated / (Used in) • Net cash generated from Operating Activities 1Q23 1Q22 FY22 FY21 RM’million was mainly due to the collection from capital financing and trade receivables. Operating activities 183 28 (288) 85 • Net cash used in Investing Activiti
Slide 13: Group Business Updates
02 Group Business Updates Timurbay, Kuantan
Slide 14: Capital Financing and Investment in RHB
Capital Financing and Investment in RHB
Slide 15: Financial Services Segment: Capital Financing
Financial Services Segment: Capital Financing • Licensed moneylender governed under the Malaysia Moneylenders Act 1951 (Act 400) and Australia Credit License RM 1,324 mil RM’mil Loan Portfolio • Provision of short term corporate and 1,400 personal loan/bridging financing 23% 14% 1,200 • Financing fo
Slide 16: Financial Services Segment: Capital Financing (Cont'd)
Financial Services Segment: Capital Financing (Cont’d) Loan Portfolio Vs Collateral 4,211 3,409 3,067 3,173 1,397 980 777 823 3.9 times 4.1 times 3.2 times 3.0 times 2019 2020 2021 2022 Loan Portfolio 16
Slide 17: Financial Services Segment: Strategic Investment
Financial Services Segment: Strategic Investment • Arose from the merger between OSK Investment Bank Berhad and RHB Investment Bank Berhad for a purchase consideration satisfied via cash and issuance of new shares in RHB Bank Berhad (“RHB”) in 2012 • OSKH is the second-largest shareholder in RHB, ho
Slide 18: Property Development and Property Investment
Property Development and Property Investment
Slide 19: Property Development
OSK Property Development Revenue (RM‘million) 722 664 689 2020 2021 2022 PBT (RM million) 240 We 141 2020 2021 2022 19
Slide 20: Sales, Unbilled Sales and Unsold GDV
Sales, Unbilled Sales and Unsold GDV 1,800 1,596 1,600 1,400 628 1,200 1,104 RM’million 1,042 1,045 1,022 1,000 34 20 962 149 895 947 915 347 850 869 850 110 798 50 200 800 92 216 334 28 636 326 28 308 600 109 21 7 968 18 1,011 1,002 893 837 400 819 757 758 734 671 540 527 517 200 472 169 14 155 - S
Slide 21: Property Segment: On-going Projects - As at 31 March 2023
Property Segment: On-going Projects - As at 31 March 2023 KEDAH PENANG Bandar Puteri Jaya, Rubica @Harbour Place, Sungai Petani (Township) Butterworth • Total land area: 2581 acres • GDV: RM137 mil • GDV: RM2.2 bil • Progress: 17% • On-going GDV: RM553 mil • Take-up rate: 30% • Take-up rate: Average
Slide 22: Property Segment: Landbank (Malaysia & Australia)
Property Segment: Landbank (Malaysia & Australia) – As at 31 March 2023 Landbank 2,002 acres Est GDV RM 16.2 billion New Land Acquisitions in 2022 Kuantan, RM0.3 bil, 2% Iringan Bayu, Seremban Amanjaya, Sg Petani GDV (RM’bil) ✓ 39.2 acres ✓ 50.8 acres Penang, ✓ Freehold ✓ Freehold RM1.2 bil 7% ✓ Est
Slide 23: Property Segment: Pipeline Launches in 2023/2024
Property Segment: Pipeline Launches in 2023/2024 – Estimated Total GDV of RM1.3b RM’mil • Shorea Park in Puchong - Anya Tower B 196.6 Klang Valley • Nuria in Melawati 63.0 • Mori Park 405.6 Butterworth • Pangsapuri Suria (Launched in Mar’23) 24.8 • Iringan Bayu in Negeri Sembilan Seremban • PH1A 17.
Slide 24: Property Segment: On-going Project in Australia
Property Segment: On-going Project in Australia - As at 30 April 2023 JV Partner : 49% equity interest Location : Southbank, Melbourne Mix : Residential Apartments, Retail Mall, Office Tower and Hotel Land area : 5 acres (FH) GDV : AUD2.8 bil (all phases) Launched : Phase 1: October 2017 Ave. SP : A
Slide 25: Property Segment: Pipeline Launches in Australia
Property Segment: Pipeline Launches in Australia - As at 30 April 2023 JV Partner : 49% equity interest Project Name : BLVD @ No. 19 Hoff Boulevard, Melbourne Square Location : Southbank, Melbourne Type : High-Rise Apartment GDV : AUD650 mil Launched : Soft launched in April 2023 Ave. SP : AUD13,000
Slide 26: Property Segment: Queens Bridge Place, Melbourne
Property Segment : Queens Bridge Place, Melbourne – Recently Acquired The acquisition of Queensbridge Street (QBP1) and 190 City Rd (QBP2) was completed on 15 July 2022 and 30 Nov 2022 respectively. JV Partner : 49% equity interest Queensbridge Park Pty Ltd had been set up to acquired the QBP proper
Slide 27: Queens Bridge Place, Melbourne (Cont'd)
Property Segment : Queens Bridge Place, Melbourne – Recently Acquired (Cont’d) Street Views Queensbridge Street City Road 27
Slide 28: Property Investment
OSK Property Investment Revenue m (RM’million) [ I - mn = 2020 2021 2022 ~. "ei NaS Core PBT/(LBT) > = BN (RM million) oe 2 3 Se (3) 2020 2021 2022 28
Slide 29: Property Investment (Offices)
Property Investment (Offices) – As at 30 April 2023 Plaza OSK Faber Towers Jalan Ampang, Kuala Lumpur Taman Desa, Kuala Lumpur Land area 1.32 acres (FH) Land area 2.63 acres (FH) NLA 236,325 sqft NLA 477,461 sqft Occupancy rate 96% Occupancy rate 81% (retail and office blocks) 29
Slide 30: Property Investment (Retail)
Property Investment (Retail) - As at 30 April 2023 Atria Shopping Gallery, Petaling Jaya NLA 446,694 sqft Occupancy rate 87% 30
Slide 31: Construction
Construction Ryan & Miho, Sec 13, PJ
Slide 32: Construction Segment
Construction Segment • Established contractor since 1979 • Optimise construction cost through early involvement in • Design and construction service provider in residential and design and planning of the development projects commercial projects • Close supervision during construction to ensure quali
Slide 33: Construction Segment (Cont'd)
Construction Segment (Cont’d) Outstanding order book of RM415 million as at 31 Mar 2023 Major Projects Completed in recent years RM’million Windmill Upon Hills 317 Project QLASSIC Score Completion Time Timur Bay 144 Iringan Bayu Show Village 82% 1 month ahead Luminari 105 Windmill Upon Hills 80% 3.5
Slide 34: Industries
Industries
Slide 35: Industries Segment: Cables
Industries Segment: Cables • Produces quality electrical and power cables since 1968 (low and medium voltage copper cables, aluminium fire resistance cables) • Factory located in Malacca • Solar photovoltaic panels on the rooftop of the factory that generates solar power capacity of: Phase 1: 569.80
Slide 36: Industries Segment: IBS
Industries Segment: IBS • Produces Industrialised Building Systems (IBS) wall panels since 1994 • Factories located in Taiping (Perak), Nilai (Negeri Sembilan) and Bandar Tenggara (Johor) • Export to Singapore • Accredited with MS ISO 9001:2008, ISO 14001-2004, UKAS Quality Management System and Sin
Slide 37: Hospitality
Hospitality
Slide 38: Hospitality Segment: Hotels
Hospitality Segment Hotels 38
Slide 39: Hospitality Segment: Hotels
Hospitality Segment: Hotels - As at 30 April 2023 Hotels managed by Swiss-Garden Hotel Genting Swiss-Garden Bukit Bintang Swiss-Garden Beach Resort Kuantan Location : Genting Highlands, Pahang Location : Kuala Lumpur Location : Kuantan, Pahang Rooms : 561 Rooms : 325 Rooms : 304 39
Slide 40: Hospitality Segment: Hotels (Cont'd)
Hospitality Segment: Hotels (Cont’d) - As at 30 April 2023 Hotels managed by international brands Double Tree by Hilton Damai Laut Resort and Damai Laut Golf & Country Club Holiday Inn Express & Suites Location : Lumut, Perak Location : Johor Bahru, Johor Rooms : 294 (4 star) Award-winning 18 holes
Slide 41: Hospitality Segment: Vacation Club
Hospitality Segment: Vacation Club - As at 30 April 2023 • 6 products – 30 years and 15 years • Travel 365 - 2 years • 8,274 active members SGI Vacation Club Villas at SGI Vacation Club at • 3,000 hotels and resorts destination Damai Laut Holiday Resort, Perak Damai Laut Holiday Resort, Perak worldw
Slide 42: Key Takeaways
OSK Key Takeaways
Slide 43: Key Investment Highlights
Key Investment Highlights ✓ Reputable developer has landbank with estimated GDV of RM16.2 billion ✓ Successful track record in delivering >40,000 homes Integrated Property ✓ Launched a total of RM1.1 billion worth of properties in FY22 and Construction Model ✓ Minimal unsold completed stocks; remain
Slide 44: Group Sustainability Blueprint
03 Group Sustainability Blueprint
Slide 45: "OSK, Growing Together" – Ensuring Sustainable Growth
“OSK, Growing Together” – Ensuring Sustainable Growth “OSK, Growing Together” is a long-term strategic 3 SUSTAINABILITY VISION: e Pro Building Sustainable Businesses growth plan that outlines ibl ce gr our direction as we strive s la es of Tomorrow rk n p Ma spo si et towards realising our ng Re Sus
Slide 46: "OSK, Growing Together" – Focus & Goals
“OSK, Growing Together” – Focus & Goals “OSK, Growing Together” outlines three (3) sustainability pillars with ESG targets, which serve to future-proof and propel the Group to new heights by focusing on long term sustainability and shared value creation to all stakeholders. PILLAR 1: Caring for the
Slide 47: ESG Initiatives
04 ESG Initiatives Environmental Social Governance
Slide 48: Environmental Initiative Highlights
Environmental Initiative Highlights Ecosystem and Biodiversity Carbon Management Conserving the 22-acre Iringan Bayu Wetland Park helps in flood We further accelerated our efforts on energy optimization mitigation and supports biodiversity within our Iringan Bayu and emissions reduction with our sol
Slide 49: Environmental Initiative Highlights
Environmental Initiative Highlights Resource Efficiency and Responsible Consumption Throughout the year 2022, OSK recorded: We strive to increase the efficiency of our consumption Total estimated of 1,655kg of recyclables collected through five (5) through with our “5R Campaign” to lessen the produc
Slide 50: Social Initiative Highlights
Social Initiative Highlights Community Support & Development Since 2016, OSK Foundation has disbursed more than RM9.08 million of funds, supported over 25k beneficiaries with RM2.6 million in 2022 aided the following programmes: • Awarded full scholarships to three (3) deserving B40 Malaysian studen
Slide 51: Social Initiative Highlights
Social Initiative Highlights Community Support & Development More health and well-being events organized for community support as follows: • Program Saringan Kesihatan by Adun Bandar Utama • Collaboration with Alzheimer’s Diseases Foundation Malaysia (ADFM) to launch World Alzheimer’s celebration •
Slide 52: Governance Initiative Highlights
Governance Initiative Highlights Reputation Maintaining good corporate governance practices During 2022, Company was recognized with awards as follows: • FIABCI World Prix d’Excellence Awards – “Residential Mid Rise Category (World Silver Winner) TimurBay Seafront Residence)” for Leadership in COVID
Slide 53: Governance Initiative Highlights
Governance Initiative Highlights Anti-Corruption Whistleblowing Our Stand on Corruption and Illicit Activities Maintaining the Highest Standard of Ethics in our Business • As part of our Management’s commitment to eliminate • We are committed to achieving and maintaining a high corruption and briber
Slide 54: Governance Initiative Highlights
Governance Initiative Highlights Regulatory Compliance Upholding High Levels of Compliance at All Times • We comply with the applicable laws and regulations wherever we operate to achieve outstanding performance, whilst maintaining the highest level of ethical integrity. Our tone on regulatory compl
Slide 55: Governance Initiative Highlights
Governance Initiative Highlights Safety, Health and Well-being Protecting Employees’ Well-Being • All our employees have returned to work in the Throughout the year 2022, we worked with RHB Asset Management, office with flexible time arrangement and are National Kidney Foundation (“NKF”) and Pusat D
Slide 56: Appendix
05 Appendix
Slide 57: On-Going Projects – Klang Valley: You City III, Cheras
Property Segment: On-Going Projects – Klang Valley You City III, Cheras GDV: RM492 million Launched: June 2019 No. of units: 800 (Tower A + B) Average Selling Price: RM615k Take-up rate: 100% (Tower A + B) % of Completion: 89% As at 31 March 2023 57
Slide 58: On-Going Projects – Klang Valley: MIRA @ Shorea Park
Property Segment: On-Going Projects – Klang Valley (Cont’d) MIRA @ Shorea Park, Puchong GDV: RM366 mil Launched: Sep 2021 No. of units: 908 Average Selling Price: RM403k % of Completion: 52% Take-up rate: 99% As at 31 March 2023 58
Slide 59: On-Going Projects – Klang Valley: ANYA @ Shorea Park
Property Segment: On-Going Projects – Klang Valley (Cont’d) ANYA @ Shorea Park, Puchong GDV: RM393 mil Launched: Aug 2022 No. of units: 750 Average Selling Price: RM524k % of Completion: 10% Take-up rate: 19% As at 31 March 2023 59
Slide 60: Ongoing Projects – Klang Valley: LEA by the Hills
Property Segment: Ongoing Projects – Klang Valley (Cont’d) LEA by the Hills, Taman Melawati Type: Low Density Condo GDV: RM233 million Launched: Jul 2022 No. of units: 344 Average Selling Price: RM678k % of completion: 8% Take-up rate: 16% As at 31 March 2023 60
Slide 61: Ongoing Projects – Penang: Rubica, Butterworth
Property Segment: Ongoing Projects – Penang Rubica, Butterworth Type: Low Density Condo GDV: RM137 million Launched: Aug 2022 No. of units: 230 Average Selling Price: RM595k % of completion: 17% Take-up rate: 30% As at 31 March 2023 61
Slide 62: Township Development – Negeri Sembilan
Property Segment: Township Development – Negeri Sembilan Completed Projects On-going Projects 62
Slide 63: Township Development – Negeri Sembilan (Cont'd)
Property Segment: Township Development – Negeri Sembilan (Cont’d) - As at 31 March 2023 8A,B1,B2 8C,8D Type: Single & Double-Storey Semi-D Type: Double-Storey Terrace GDV: RM215 million GDV: RM152 million (8C) , RM168 mil (8D) Launched: Nov 2021 (8C), May 2022 (8D) Launched: Mar 2021 (8A), Sep 2021
Slide 64: Township Development – Sg Petani, Kedah
Property Segment: Township Development – Sg Petani, Kedah Completed On-going Projects 64
Slide 65: Township Development – Sg Petani, Kedah (Cont'd)
Property Segment: Township Development – Sg Petani, Kedah (Cont’d) - As at 31 March 2023 Single-Storey Terrace Single-Storey Terrace Double-Storey Terrace Single-Storey Terrace GDV: RM53 million GDV: RM51 million (z1), GDV: RM110 million GDV: RM36 million Launched: Jan 2022 RM51 million (z2) Launche
Slide 66: Township Development – Sg Petani, Kedah (Cont'd)
Property Segment: Township Development – Sg Petani, Kedah (Cont’d) - As at 31 March 2023 Single-Storey Bungalow Single-Storey Semi-D & Double-Storey Semi-D & Single-Storey Bungalow Double-Storey Bungalow GDV: RM42 million (z1), RM55 million (z2) GDV: RM55 million GDV: RM27 million Launched: Oct 2021
Slide 67: Projects Handed over in 2022
Property Segment: Projects Handed over in 2022 67
Slide 68: Projects Handed over in 2022 – Sg Petani, Kedah
Property Segment: Projects Handed over in 2022 – Sg Petani, Kedah Recently Completed Projects Westfield (Total 323 units) Northfield (Total 474 units) ▪ Zone 1 – 3: 13 units ▪ 7 unit of Single Storey Bungalow ▪ Zone 1: 162 units ▪ 6 units of Double Storey Bungalow ▪ 162 units of Single Storey Terrac
Slide 69: Projects Handed over in 2022 – Negeri Sembilan
Property Segment: Projects Handed over in 2022 – Negeri Sembilan Recently Completed Projects IRINGAN BAYU ▪ Phase 3C Single Storey Terrace Homes (Desira) IRINGAN BAYU ▪ QLASSIC Score 78% IRINGAN BAYU ▪ Phase 3B Double Storey ▪ VP on 31 May 2022 ▪ Phase 3D Double Storey Terrace Homes (Mekary) Terrace
Slide 70: Completed Projects Township Development – Sg Petani, Kedah
Property Segment: Completed Projects Township Development – Sg Petani, Kedah - As at 31 March 2023 Low Cost Flat Single-Storey Bungalow GDV: RM7.3 million GDV: RM45 million Launched: Aug 2018 Launched: Dec 2019 No. of units: 160 No. of units: 75 Average Selling Price: ≈ RM46k Average Selling Price:
Slide 71: Thank You
OSK Holdings Berhad Level 21, Plaza OSK, Jalan Ampang, 50450 Kuala Lumpur, Malaysia. (603) 2177 1999 (603) 2026 6331 info@oskgroup.com www.oskgroup.com Disclaimer: This material is proprietary and is prepared specifically for the recipient’s Thank You reference. The information contained herein is n