Eco World Development Group Bhd. · MYX:ECOWLD
Eco World Development Group Bhd — Q4 2020 Earnings Presentation
40 slides from Eco World Development Group Bhd's earnings presentation, December 2020
Slide 1: Q4 FY2020 Results & Briefing
Q4 FY2020 R E S U LT S & B R I E F I N G DECEMBER 2020
Slide 2: Slide 2
Slide 3: Financial Updates - Q4 2020
FINANCIAL UPDATES - Q4 2020
Slide 4: Sales Breakdown by Quarter
Aug - Oct 2020 Sales Breakdown by Quarter RM1.0B Sales Achieved in 3 months 1Q 2020 305 2Q 2020 28 As at 31 Oct 2020 RM2.3B Cumulative Sales Achieved 3Q 2020 960 4Q 2020 1,009 > Sales target of RM2.0B RM’mil 0 100 200 300 400 500 600 700 800 900 1,000
Slide 5: Profit & Loss
Profit & Loss FY2020 RM135M RM’000 Q4 2020 Q4 2019 FY2020 FY 2019 Revenue 635,466 906,543 1,996,681 2,462,325 Cost of Sales (583,567) (764,995) (1,729,211) (1,992,654) Gross Profit 51,899 141,548 267,470 469,671 Profit After Tax Other Operating Income 13,581 13,651 58,067 53,661 after RM99 million w
Slide 6: Balance Sheet
Balance Sheet RM1.59 RM’000 31 Oct 2020 31 Oct 2019 Shareholders’ Funds 4,670,937 4,538,016 NA per Share (RM) 1.59 1.54 Total Cash 456,437 600,539 Net Asset per share Total Borrowings 3,316,407 3,779,408 Net Cash / (Debt) (2,859,970) (3,178,869) Gross Debt – Equity Ratio (x) 0.71 0.83 shareholders’
Slide 7: Future Revenue attributable to EcoWorld Malaysia as at Oct 2020
Future Revenue attributable to EcoWorld Malaysia as at 31 Oct 2020 SALES RECOGNISED FUTURE EFFECTIVE SECURED REVENUE REVENUE PROJECT STAKE (%) (RMmn) (RMmn) (RMmn)* Klang Valley 100% 6,725.9 6,019.4 706.6 Iskandar Malaysia 100% 5,342.1 4,744.4 597.7 Iskandar Malaysia Eco SUBSIDIARIES 100% 1,574.2 1,
Slide 8: EcoWorld Market Presence 2015 – 2020
ECOWORLD MARKET PRESENCE 2015 – 2020
Slide 9: #YouBelong
Breakdown by types of properties (by units sold) Cumulative as at Cumulative as at Oct 2015 Oct 2020 12% 13% 17% #YouBelong 21% 16% 13% 25% ideal properties for everyone 14% 37% 12% 20% Products curated to suit the needs of every generation, Landed - Upgrader (RM>1m) Highrise - M40 (<RM500k) Landed
Slide 10: Upgraders
UPGRADERS core EcoWorld market segment Eco Ardence, Setia Alam Eco Sanctuary, Kota Kemuning Eco Botanic, Iskandar Puteri
Slide 11: Mass Housing
MASS HOUSING self-sustaining master planned townships Eco Majestic, Semenyih Eco Springs, Tebrau Eco Summer, Tebrau
Slide 12: High-Rises
HIGH-RISES a range of price-points to suit every budget Parque Residences @ Eco Sky, Kuala Lumpur Eco Nest @ Eco Botanic, Eco Bloom @ Eco Meadows, Eco Sanctuary Iskandar Puteri Penang
Slide 13: BBCC
BBCC Integrated development a visionary, state-of-the-art inner-city regeneration project & masterpiece in the making / SERVICED APARTMENT strategically situated on sizeable 19.4 - acre parcel at the heart of Kuala Lumpur’s Golden Triangle
Slide 14: M40 Landed
M40 LANDED ideal homes for the mass market Eco Tropics, Pasir Gudang Eco Grandeur, Puncak Alam Eco Botanic 2, Iskandar Puteri
Slide 15: Growing Share of M40 / Gen-Y & Z
GROWING SHARE OF M40 / Gen-Y & Z strategic shift since 2015 Why M40? Large pool of mainly young, upwardly mobile individuals & families (Gen-Y + Gen Z) that we can continue to serve as their needs & investment capacity grow over time / Latest launches mainly comprise products priced to suit this mar
Slide 16: Duduk
DUDUK ideal first homes for Gen Y & Z Se.Ruang Huni @ Eco Sanctuary @ Eco Ardence Built up 1,000 sqft (3 room, 2 bathrooms) Semi-furnished All Light & Fan | Air Cond | Master Bedroom Wardrobe | Kitchen Cabinet | Hob | Washer Dryer | Water Heater Target selling price From RM393,000 Launched date End
Slide 17: Eco Botanic
ECO BOTANIC latest dream homes for M40 families 2 Eco Botanic 2 Built up 1,701 sqft – 2,300 sqft Target selling price From RM500,000 – RM800,000 Target launch End 2020 / Early 2021 Target completion End 2023 / Early 2024
Slide 18: Ergo Homes
ERGO HOMES phase 2 launch at Eco Forest Ergo Homes @ Hazelton Land size 30’ x 30’ Built up From 1,851 sq ft Target selling price Above RM600K Target launch Early 2021 Target completion Early 2024 First phase launched at RM570K - sold out
Slide 19: Co-Homes
CO-HOMES offering the best of both worlds (landed + condo) RM400K – RM500K PARKING & - EASY ON THE POCKET! GARDEN AT YOUR DOORSTEP
Slide 20: SWNK Houze
SWNK HOUZE @ BBCC Chic Serviced Apartments Coming Soon in KL Studio units, 1-bed, 2-beds, 2+1 beds, 3-beds right above BBCC’s Entertainment Hub at KL’s hottest address
Slide 21: Eco Business Parks
ECO BUSINESS PARKS
Slide 22: Eco Business Park
ECO BUSINESS PARK a sizeable presence in a growing sector Total Landbank Total GDV Total Cumulative Sales Remaining GDV 1,762 acres RM9.5 billion RM2.1 billion RM7.4 billion EBP I, Tebrau EBP II, Senai EBP III, Pasir Gudang EBP V, Puncak Alam
Slide 23: EcoWorld One-Stop Business Solution
ECOWORLD COMPANY INCORPORATION ONE-STOP business solution Our One-stop Business Solution aims to provide a hassle-free experience for our customers with assistance on: RECRUITMENT & REGISTRATION OF STAFF • Pre-assessment Test for Department of Environment (DOE) • Incentives and financing facilitatio
Slide 24: Networking
NETWORKING EcoWorld Business Community networking opportunities for entrepreneurs through events hosted by Eco Business Parks to increase engagement & spur business activities / zoom meeting, webinars / video walk-throughs to better connect with industrialists & business owners and to increase produ
Slide 25: Flexi-Space
FLEXI-SPACE customisable to suit every business EcoWorld’s innovative Flexi-Space Concept caters to a wide range of businesses, including manufacturing, warehousing, retail, logistics, IT and F&B RETAIL PRODUCTION / WAREHOUSE OFFICE SHOWROOM Innovative use of the industrial units as restaurants, sho
Slide 26: Rising Demand
EBP V location PENANG RISING DEMAND sales up by 193% from Q3 to Q4 2020 35 KM EcoWorld’s substantial network of contacts with industrialists and other key players through EBP I, II & III in Iskandar Malaysia & EBP V in Selangor will stand us in good stead to pursue further opportunities 27 KM PENJAN
Slide 27: Conclusion
CONCLUSION
Slide 28: EcoWorld Malaysia: Strategies to Emerge Stronger Post-Crisis
ECOWORLD MALAYSIA STRATEGIES TO EMERGE STRONGER POST-CRISIS MOVING AHEAD BEYOND FY2020 Property Market Recovery - Cannot wait for conditions to improve – development plans & product mix all adjusted to reflect current realities - New duduk brand & other products targeted at M40 / Gen-Y & Z groups en
Slide 29: EcoWorld International
ECOWoRLD INTERNATIONAL CREATING TOMORROW & BEYOND
Slide 30: Profit & Loss
Profit & Loss RM82.6M RM’000 FY2020 FY2019 Revenue 672,985 478 Direct Expenses -572,995 - Gross Profit 99,990 478 in FY2020 PAT Other Operating Income 26,122 19,227 (RM165.6m PAT Selling & Marketing Expenses -26,438 -4,569 before goodwill impairment) Administrative Expenses -39,326 -61,659 Impairmen
Slide 31: Balance Sheet
RM1.14 net asset per share RM’000 Shareholders’ Funds Balance Sheet 31 Oct 2020 2,739,072 31 Oct 2019 2,685,641 NA per Share (RM) 1.14 1.12 Total Cash 284,014 439,995 low net gearing Total Borrowings 1,228,359 1,463,745 / Net Debt / (Cash) 944,345 1,023,750 borrowings reduced mainly due to settlemen
Slide 32: Sales Momentum
SALES MOMENTUM EWI FY2020 Sales SUSTAINED SALES RM448m PERFORMANCE RM315m RM320m RM317m RM1.4 billion sales achieved in FY2020 / Stronger sales in Q4 2020 driven by launch of EG A03 and seasonal factors / RM2.2 billion sales target for FY2021 Q1 FY2020 Q2 FY2020 Q3 FY2020 Q4 FY2020
Slide 33: Wardian
Wardian
Slide 34: Yarra One
Yarra One
Slide 35: Strategic Business Plan: Strengthening the Balance Sheet
STRATEGIC BUSINESS PLAN Total GDV By Business Unit STRENGTHENING THE £3.0b BALANCE SHEET £2.2b Target to sell and hand over all launched units in EW- Ballymore (£2.2b GDV) and Australia (c.A$560m GDV) in 2-3 years / EWI’s gearing to reduce significantly following handover A$0.7b in West Village, War
Slide 36: Strategic Business Plan: Re-positioning the Business
STRATEGIC BUSINESS PLAN HARROW BARNET ENFIELD RE-POSITIONING THE BUSINESS HARINGEY WALTHAM REDBRIDGE FOREST HAVERING HILLINGDON BRENT HACKNEY CAMDEN BARKING & DAGENHAM TOWER EALING CITY HAMLETS NEWHAM Target substantial reduction in overhead costs across all EWI GREENWICH SOUTHWARK operations HOUNSL
Slide 37: APO BtR Platform
APO BtR PLATFORM A newly-launched residential management company that provides end-to-end service for BtR investors in sourcing investment opportunities, supporting design & development, leasing and long-term property management / Key business priorities include: • Consumer launch/Barking Wharf leas
Slide 38: Conclusion: Strategies to Emerge Stronger Post-Crisis
CONCLUSION STRATEGIES TO EMERGE STRONGER POST-CRISIS ACHIEVEMENTS TO-DATE RM13.4 billion of cumulative sales achieved as at 31 October 2020 with more than 4,400 units sold / Original projects under EcoWorld-Ballymore JV + 2 projects in Australia largely completed by early 2021 enabling strong profit
Slide 39: Sales Breakdown as at October 2020
Sales Breakdown As At 31 OCTOBER 2020 CUMULATIVE EWI GDV SALES SALES VALUE FUTURE PROJECT STAKE (MILLION) (MILLION) (MILLION) REVENUE1 FY2015-2019 FY2020 United Kingdom London City Island 75% £697 £584 £542 £42 £31 Embassy Gardens 75% £895 £482 £358 £125 £59 Wardian London 75% £574 £482 £450 £32 £20
Slide 40: Thank You
THANK YOU ECOWorLD ECOWorLD INTERNATIONAL CREATING TOMORROW & BEYOND
Eco World Development Group Berhad — Q4 2020 Earnings Presentation on 6ix