Sime Darby Property Bhd. · MYX:SIMEPROP
Sime Darby Property Bhd — Shareholder Meeting (May 2022)
44 slides from Sime Darby Property Bhd's shareholder meeting presentation, May 24, 2022
Slide 1: 49th Annual General Meeting
49th Annual General Meeting Corporate Presentation 24 May 2022 | Virtual from KLGCC simedarbyproperty.com
Slide 2: Table of Contents
Table of Contents Page 1. 2021 at a Glance 3–9 2. FY2021 Financial Performance 10 – 15 3. FY2021 Sales & Launches 16 – 20 4 Battersea Power Station Updates 21 – 23 5. Other Operational Matters 24 – 28 5. Shareholders’ Returns 29 – 31 6. Our Strategy Moving Forward 32 – 38 7. Appendices 40 – 43 2
Slide 3: 2021 at a Glance
Sime 2021 at a Glance
Slide 4: Key Highlights
Key Highlights SD Property posted encouraging achievements as the result of our focus on strategic new launches, intensive marketing campaigns & financial discipline Financial Profit After Tax Revenue Profit Before Tax and Minority Interest Cash Position RM2,219.9 million RM268.3 million RM136.9 mil
Slide 5: Journey Through the Pandemic
Journey Through the Pandemic Total review and impairment in FY2020 strengthened foundation & financial position; Supported the recovery for FY2021 onwards FY2020 FY2021 Weathering the initial onset of the pandemic A better year despite the challenges • All 3 business segments were disrupted by the p
Slide 6: Key Milestones (1/2)
Key Milestones (1/2) Expanded our Industrial & Logistics business; Launched fund management platform as we pivot into a Real Estate Company; Reimagining homes of the future via Concept Home 2030 Two New Industrial Townships Launched Concept Home 2030 ▪ Turned Pagoh township to Pagoh Special Economic
Slide 7: Key Milestones (2/2)
Key Milestones (2/2) Notable corporate milestones further solidified SD Property’s foundation; Digitalisation enabled us to continue engaging with customers virtually and seamlessly Online Booking System (“OBS”) Built In-house Other Corporate Milestones ▪ 85% take-up rate within 30 minutes for Maya
Slide 8: Sustainability Highlights
Sustainability Highlights Recognised in the industry for operational, corporate and sustainability excellence Published 2020 Sustainability Report 22,809 “IUCN” Red List trees Malaysia’s First Inclusive Playground City of Elmina awarded The Edge Property planted; seeds germinated at Elmina in collab
Slide 9: Awards & Recognitions
Awards & Recognitions Recognised in the industry for operational, corporate and sustainability excellence MARC’s Lead Managers’ 4th at The Edge Property Three Awards at EdgeProp League Table Awards – Excellence Awards 2021 Malaysia’s BMSPA 2021 Sustainability Award Two Awards at PwC 6 Wins at the Pr
Slide 10: FY2021 Financial Performance
FY2021 Financial Performance 10
Slide 11: 5-Year Financial Performance
5-Year Financial Performance FY2021 Revenue increased by 7.6% YoY while both PBT and PATAMI improved by >100% YoY Revenue Profit Before Tax Profit After Tax and Minority Interest Excluding one-offs 2.6% Excluding one-offs 18.1% 6.5% 35.1% 888.8 8.6% One-offs One-offs 728.4 624.0 640.0 598.5 3,180.0
Slide 12: Segmental Revenue and PBT/(LBT) Analysis for FY2021
Segmental Revenue and PBT/(LBT) Analysis for FY2021 Property Development segment remained as the key revenue and profit contributor in FY2021; YoY bottom line improvement for all three business segments Revenue PBT/(LBT) RM2,219.9 million RM268.3 million Leisure Leisure 55.5 -14.0 Investment & Inves
Slide 13: Cash and Gearing Position as at December 2021
Cash and Gearing Position as at 31 December 2021 Cash balances increased by 13.4% YoY; Net gearing remained moderate at 32.0% (without Battersea Power Station-related borrowings: 25.0%) Cash Position Gearing Position (RM mil) Net Operating Cash Flow Gross Gearing (%) Net Gearing (%) 622.7 (589.2) (6
Slide 14: Property Development Inventories as at December 2021
Property Development Inventories as at 31 December 2021 Completed inventories reduced to new low of ~RM330m from FY2020’s of ~RM574m; higher ongoing inventories (+34%) to unlock land value Inventories in Carrying Value Inventories in GDV & Units 31 Dec 2021 31 Dec 2020 Not New Launches RM295.1m (8.9
Slide 15: Financial Summary
Financial Summary Commendable growth amid the challenges presented in FY21; unlocked greater value from inventories Profit & Loss Unit FY2021 FY2020 % change Revenue RM mil 2,219.9 2,062.8 ▲ 7.6% Improved financial achievements in PBT RM mil 268.3 (474.8) ▲ >100% FY21 underpinned by: % Margin % 12.1
Slide 16: FY2021 Sales & Launches
Sime Property FY2021 Sales & Launches 16
Slide 17: Sales Achieved & Unbilled Sales
Sales Achieved & Unbilled Sales Sales achievement of RM3.0b; exceeded sales target of RM2.4b and on par with pre-pandemic levels of RM3.1b in 2019; Unbilled sales increased significantly for future revenue visibility FY2021 Sales Achieved Unbilled Sales RM2,950.0m RM2,383.3m 3,000.0 1.4 1.2 Statutor
Slide 18: FY2021 Launches and Take-up Rates (1/3)
FY2021 Launches and Take-up Rates (1/3) Highest ever launches at RM3.7b GDV & 3,594 units; 90% average take-up rate for all product launches and 96% for residential products excluding statutory Total Launches in FY2021 3,594 units @ RM3,720.0 million GDV Residential Landed – 1,814 units @ RM1,451.3
Slide 19: FY2021 Launches and Take-up Rates (2/3)
FY2021 Launches and Take-up Rates (2/3) Two high-rise products recorded 92% average take-up rate while statutory products are 94% taken up Residential High-rise – 871 units @ RM1,188 million GDV Statutory – 702 units @ RM124.0 million GDV 91% 93% KLGCC Resort BBR 1 Jendela Residences Inang 93% 91% S
Slide 20: FY2021 Launches and Take-up Rates (3/3)
FY2021 Launches and Take-up Rates (3/3) Industrial products gathered exceptional interest and garnered 88% average take-up rate Industrial – 194 units @ RM939.4 million GDV 100% 100% 100% Elmina Business Park Nilai Impian Hamilton City i12, i13, i20, i21 XME Phase 2A Plot 1, 2A & 2B 100% 100% 60% El
Slide 21: Battersea Power Station Updates
Battersea Power Station Updates 21
Slide 22: Battersea Power Station
Battersea Power Station Handed over residential units in Switch House West, Switch House East and Boiler House; 84% of commercial spaces have been let at the Power Station Residential Sales Achieved: (Jan’21 to Mar’22): £469.4m Commercial Spaces Let as at Mar’22: 84% (Q1 FY22): £107.0m Handed over r
Slide 23: Battersea Power Station: Official opening September 2022
Battersea Power Station Official opening of the Power Station in September 2022 Key Milestones in 2022 January March April June September (to September) (to June) (to September) Handover of Power Completion of Electric Boulevard Power Station residential Launching and commencement Official opening o
Slide 24: Other Operational Matters
Other Operational Matters 24
Slide 25: 2030 Sustainability Goals
2030 Sustainability Goals As at 31 December 2021, achieved/exceeded the targets for 13 out of 18 goals 1 2 3 4 5 6 7 8 9 AFFORDABLE VOLUNTEER CYCLING & HUMAN SUPPORTING ECONOMIC PRODUCT BUILDING JOB RIGHTS LOCAL BUSINESS INJECTION TECHNOLOGY CREATION HOMES HOURS JOGGING TRACKS QUALITY 15,000 Units 1
Slide 26: Corporate Social Responsibility (1/2)
Corporate Social Responsibility (1/2) Delivering our CSR commitments through Yayasan Sime Darby to create social impact that benefits deserving recipients, including communities affected by the pandemic and recent floods ▪ Sime Darby Property’s philanthropic Types of Assistance Distributed from Marc
Slide 27: Corporate Social Responsibility (2/2)
Corporate Social Responsibility (2/2) Focused to drive corporate and social responsibility efforts for the benefit of communities within and adjacent to our township, as well as other key stakeholders Tabung Cerdik Initiative Bakul Makanan Selangor Economic Empowerment Programme 1,894 students from
Slide 28: Concept Home 2030
Concept Home 2030 Through this competition, SD Property hopes to bring forth innovative ideas that will spur the development of new products to meet the needs of future generations 4 out of 6 of the winning concepts 1 3 NON-FUNGIBLE TERRACE I-LIVE Qhawarizmi Architect RE Design/Boon Zi Yang PEOPLE’S
Slide 29: Shareholders’ Returns
Sime Property Shareholders’ Returns 29
Slide 30: Total Shareholder Return
Total Shareholder Return 1-Y TSR (1 Jan 2021 – 31 Dec 2021) of 2.2% on par with FBM KLCI of 2.3% 1-Year Total Shareholder Returns (1 January 2021 – 31 December 2021) Sime Darby Property TSR +2.2% YoY As at FBMKLCI: SD Prop: Bursa Prop: (01.01.2021-31.12.2021) 31 Dec 2021 1,567.53 pts RM0.595 703.65
Slide 31: Dividend Payout Trend
Dividend Payout Trend Dividend payout ratio of 49.7% in FY2021; Committed to dividend payout of at least 20% Historical Dividend Payment & Payout Ratio FY2021: • Focused on restoring sen 5.0 sen 1.0 sen 3.0 sen 1.0 sen 1.0 sen profitability via income diversification, asset 5.0 133.4% 150.0% 133.2%
Slide 32: Our Strategy Moving Forward
Our Strategy Moving Forward 32
Slide 33: Malaysian Economy & Property Market Outlook
Malaysian Economy & Property Market Outlook 2022 GDP growth projection of between 5.3% and 6.3%; Bright outlook for industrial sector Malaysia’s Q1 2022 GDP grew at 5.0% (Q4 2021: 3.6%) Property Industry Propelled by : Growth is expected in 2022 but remain cautious of the industry’s • Expansion in r
Slide 34: Recap on SHIFT25 – A Real Estate Company by 2025
Recap on SHIFT25 – A Real Estate Company by 2025 Transforming from Pure-Play Property Development towards becoming a Real Estate Company Pure-Play Property Developer Real Estate Company Business Model Master Developer Community Builder Investment & Asset Manager • Township & Integrated Development •
Slide 35: Expectations for FY2022
Expectations for FY2022 Targeting a stronger financial year to maximise value creation for shareholders Unbilled Sales Fund Strategic Gross Profit Operating Completed Diversify product Sales Target / LTM PD Management Launches Margin Cash Flow Stock pipeline Revenue Platform Target <10% of More resi
Slide 36: FY2022 Launch Plan
FY2022 Launch Plan FY2022 sales target of RM2.6b supported by RM2.8b GDV launch plan with strategic product mix (~81% residential, ~16% industrial) Planned Launches in FY2022 3,976 units I RM2,802.7 million GDV ~RM2.8b Agile Launch Plan with strategic product mix Product Units GDV (RM mil) GDV propo
Slide 37: Remaining Landbank & GDV as at December 2021
Remaining Landbank & GDV as at December 2021 ~15,400 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 ~9,448 acres, RM89b ~3,507 acres, RM1
Slide 38: Investment Proposition
Investment Proposition Strengthened fundamentals and track record for growth Improved Financial 1 Resilient Financial Position Performance Solid Balance Sheet Revenue Visibility * as at 8 May 2022 FY2021 Revenue Moderate Net Gearing FY2021 Sales FY2021 Unbilled Sales RM2,219.9m (+7.6% YoY) 32.0% Ach
Slide 39: 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 40: Appendices
Appendices Property
Slide 41: End-to-end Online Marketing & Sales Solution Built In-House
End-to-end Online Marketing & Sales Solution Built In-House Convenience for homebuyers to view, register, select and complete payments online; Today, all our product sales can be transacted seamlessly through our Online Booking System (OBS) Advertise Product Register Online Unit Pay & Document- On
Slide 42: 4 Strategic Imperatives towards Being a Force for Good
4 Strategic Imperatives towards Being a Force for Good Finding the optimal balance between reducing our carbon footprint, social impact sustainable profit 42
Slide 43: 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 1 CAP INDEX (2018-current) and 2 Rating
Slide 44: 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
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