Paramount Corp. Bhd. · MYX:PARAMON
Paramount Corp. Bhd — FY2021 Earnings Presentation
37 slides from Paramount Corp. Bhd's earnings presentation, Mar 4, 2022
Slide 1: Investor Relations & Media Presentation FY2021 Results
Investor Relations & Media Presentation FY2021 Results 4 March 2022 1
Slide 2: Overview FY2021
PARAMOUNT Overview FY2021
Slide 3: FY2021 Highlights
FY2021 Highlights Revenue (continuing ops) PBT (continuing ops) PAT (continuing ops) RM681.4m RM70.3m RM42.7m YOY 15% YOY 37% YOY 36% Property Sales Projects Launched Average Take-Up Rate Unbilled Sales Remaining Land Bank Debt to Total Equity Ratio Potential GDV RM7.1 bn Note: ^ Represented the per
Slide 4: Gross Div Per Share & Payout Ratio
Gross Div Per Share & Payout Ratio Payout sen ratio 35.00 65% 70% 30.00 60% 51% 25.00 50% 40% 40% 38% 20.00 40% (property sector) 15.00 29.00 * 30% 15.6% 7.50 * 10.00 7.50 * 20% Market price @ 24 Feb 5.00 10% 8.50 8.50 6.50 2.5 3.0 68 sen - 2017 2018 2019 2020 2021 0% Closing Proposed final dividend
Slide 5: FY2021 Corporate Developments: Entry into Fintech
FY2021 Corporate Developments Entry into Fintech (Aug 2021) -Seek new source of earnings & to future proof business PCB, through its wholly-owned subsidiary, Magna Intelligent Sdn Bhd has subscribed for 30% equity stake in Omegaxis Sdn Bhd, the holding company of Peoplender Sdn Bhd (Peoplender) for
Slide 6: FY2021 Corporate Developments: Applied for Digital Banking Licence
FY2021 Corporate Developments Applied for Digital Banking Licence -Seek new source of earnings & to future proof business Paramount had on 30 June 2021 announced that it has applied to Bank Negara Malaysia for a digital banking licence as the lead applicant of a consortium. Reimagine the Future of B
Slide 7: Digital Banking Licence - Current landscape
FY2021 Corporate Developments (cont’d) Digital Banking Licence -Current landscape Post Foundational Stage Minimum capital funds: RM300m unimpaired by losses Source: Based on publicly published information (not the full list) 7
Slide 8: Acquired balance 29% in hotel JV
FY2021 Corporate Developments (cont’d) Acquired balance 29% in hotel JV that was established in 2016 -Paramount obtained full equity control over the Mercure Kuala Lumpur Glenmarie ➢ In Dec 2021, Paramount completed its acquisition of the remaining 29% collective shareholding of Lasseters Properties
Slide 9: Awards and Industry Recognitions
Awards and Industry Recognitions BCI Asia Awards 2021 ✓ Top 10 Developers in Malaysia The Edge Top Property Developers Awards 2021 ✓ Overall ranking - 12th ✓ Qualitative Overall – 9th ✓ Quantitative Overall – 16th EdgeProp-ILAM Malaysia’s Sustainable Landscape Awards 2021 Hill park @ Bukit Banyan wa
Slide 10: Awards and Industry Recognitions (cont'd)
Awards and Industry Recognitions (cont’d) MSWG-ASEAN Corporate Governance Scorecard Award 2020 ✓ Ranked 13th among the top 100 public listed companies ✓ Ranked 1st for Excellence award for CG disclosure : Market Cap above RM300m to RM1bn ✓ Ranked 1st for Industry Excellence Award – Property segment
Slide 11: Operational Review
PARAMOUNT ~ Operational Review
Slide 12: Property Sales & Unbilled Sales
Property Sales & Unbilled Sales Y-o-y growth in sales; Unbilled sales at record high of RM1.1bn Q-o-Q Sales and unbilled sales FY2021 Sales RM’ mil 1,200 1135 Greenwoods Salak ATWATER, Kemuning Perdana, Selangor Selangor Idaman, Selangor 1033 1026 4% 1% 1% 991 Others 806 Berkeley Uptown, 1% Bukit Se
Slide 13: On-going products – take up rate & launches
On-going products – take up rate & launches Encouraging take-up rate at 73%; on-going GDV at RM2.7 bn# Take up FY2022 Existing On-going Launched in FY2021 rates Tentative Launches Type of projects by GDV As at 31 Locations development subsidiaries RM’m GDV Dec 2021 GDV Quarter %^ RM’m RM’m 138 - - 9
Slide 14: Co-labs Coworking & Scalable Malaysia
Co-labs Coworking & Scalable Malaysia New space opened in Jan 2021 at Tropicana Gardens Mall & maiden contribution from Scalable Malaysia Co-labs Coworking Scalable Malaysia Tropicana Gardens, Kota Damansara ▪ 5 outlets in Klang Valley ▪ 114,945 sq ft lettable ▪ Collaborative ecosystem & holistic Op
Slide 15: Financial Review
PARAMOUNT ~ Financial Review
Slide 16: Financial Overview
Financial Overview Revenue and PBT improved y-o-y 15% and 37%, respectively FY2021 FY2020 Variance RM’000 RM’000 % Unaudited Audited (Restated)* Revenue 681,351 593,562 +15 Operating profit b4 depreciation & 112,343 86,165 +30 impairment Depreciation (18,826) (18,178) +4 Net interest expense (20,174
Slide 17: Quarterly Financial Performance
Quarterly Financial Performance 3Q worst hit in FY2021; all quarters (except 3Q) has improved y-o-y Revenue (RM’m) PBT (RM’m) 350 50 317 45 43 300 40 37 250 35 219 189 30 200 152 25 150 127 20 122 100 85 15 10 12 11 64 10 6 50 4 5 0 0 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q -5 -2 2020 2021 2020 2021 17
Slide 18: Segmental Analysis
Segmental Analysis Property division is the core contributor to the improved financial performance Group Revenue Group PBT RM681.4m RM593.6m RM70.3m RM51.5m RM’m 15% RM’m 37% 300.0 40.0 250.0 30.0 200.0 20.0 150.0 10.0 100.0 0.0 50.0 -10.0 0.0 -20.0 FY2021 FY2020 FY2021 FY2020 Investment* & Investme
Slide 19: Property Division
Property Division Geographically diverse property division remain resilient despite pandemic Yr on Yr ATWATER, Others, * Selangor Bukit Banyan, • Revenue RM672.1m 15% 15% Kedah 17% • PBT RM78.6m 25% Sekitar26, Selangor • PBT margin 12% 1% 14% Revenue Utropolis Batu Kawan, Penang 15% FY2021 ➢ Include
Slide 20: Coworking Division
Coworking Division Revenue and EBITDA improved Yr on Yr Revenue FY2021 • Revenue RM5.8m 29% • LBT RM8.6m 83% Scalable Malaysia 19% Co-labs Coworking ➢ Maiden contributions from Tropicana 81% Gardens outlet and Scalable Malaysia. Co-labs Coworking ➢ Included impairment loss of RM4.6 Scalable Malaysia
Slide 21: Financial Position (31 Dec 2021)
Financial Position (31 Dec 2021) Strong balance sheet and liquidity position Shareholders’ Net current Debt to Total funds assets YOY Equity 98% ratio* Cash & bank Unbilled sales Unutilised banking balances facilities * Total equity includes Private Debt Securities of RM249.0 m as at 31 Dec 2021) Gr
Slide 22: Outlook
Outlook 22
Slide 23: Malaysia property sales 9M2021
Malaysia property sales 9M2021 9M2021 seen improvement in sales volume y-o-y Volume of Property Volume of Residential Transactions Transactions 300,000 10.0% 155,000 153,069 10.0% 243,257 150,000 6.2% 250,000 5.0% 5.0% 6.4% 204,708 2.7% 201,065 145,000 200,000 0.0% 0.0% -1.8% 140,000 150,000 -5.0% 1
Slide 24: Unsold Vs Overhang 3Q2021 (residential properties)
Unsold Vs Overhang 3Q2021 (residential properties) Overhang units declined Y-o-Y but units unsold under construction increased 200,000 180,702 Residential Property Incoming Supply 180,000 800,000 160,000 56,802 700,000 603,387 623,477 600,000 140,000 500,000 120,000 400,000 100,000 300,000 200,000 8
Slide 25: Petaling District (Incoming supply)
Petaling District (Incoming supply) 25 Source: NAPIC
Slide 26: Outlook FY2022
Outlook FY2022 Outlook hinges on recovery of the economy and headwinds faced by the property sector Endemic phase is expected to restore consumer confidence and aid the recovery of the property market Low interest rate environment albeit gradual hike is expected Record high unbilled sales at RM1.1bn
Slide 27: FY2022 Pipeline Launches
FY2022 Pipeline Launches RM1.3bn launches; 32% from existing projects 2022 Indicative Launches Commercial: High rise : Landed 1Q, 2Q & Bukit Banyan, Landed resi & Sungai Petani shop office Commercial 5% 3Q2022 RM71m Landed 31% 2Q2022 Batu Kawan, Shop RM394m Penang High Arinna Kemuning Utama High-ris
Slide 28: Arinna, Kemuning Utama (Shah Alam)
Selangor Arinna, Kemuning Utama (Shah Alam) High rise Residential To KL To Shah Alam / / Federal Suban Highway g Subject Site Kota Kemuning To Cyberjaya / SKVE Artist Impression Unique selling points Launching in 2Q2022 ➢ 6.02 acre of freehold land for high rise development at Kemuning Utama in Shah
Slide 29: Sejati Lakeside 2 – Persiaran Bestari (Cyberjaya)
Selangor Sejati Lakeside 2 – Persiaran Bestari (Cyberjaya) Landed residential Subject Site Artist Impression Unique selling points Launching in 3Q 2022 ➢ 234 units of semi-detached home on 32.70 acres of freehold land ➢ An exclusive development with semi-detached home only with dual recreation exper
Slide 30: Atera - Section 14, PJ
Selangor Transit Oriented Mix Atera - Section 14, PJ Development Artist Impression Artist Impression Unique selling points Launching in 3Q 2022 ➢ 2,091 units of serviced apartments and 9 retail lots on a 9.66 acres leasehold land ➢ Supported with 23 various types of exciting facilities for family en
Slide 31: Q&A
1 2 3 Raise hand Unmute Lower hand Q&A Jeffrey Chew Sun Teong Foong Poh Seng Group Chief Executive Officer Chief Financial Officer Benjamin Teo Chee Siew Pin Deputy Group Chief Executive Officer Chief Executive Officer, Paramount Property 31
Slide 32: Appendices
PARAMOUNT Appendices
Slide 33: Diversified Landbank & GDV (31 Dec 2021)
Diversified Landbank & GDV (31 Dec 2021) Remaining Gross Development Period Remaining Undeveloped Project Status GDV* Lands (RM’m) Start End (Acres) Northern Bukit Banyan & BLM, Sungai Petani On-going 123.0 641 2012 2027 Batu Kawan, Penang On-going 19.3 1,721 2016 2027 Kemuning Utama, Shah Alam On-g
Slide 34: Inventories (31 Dec 2021)
Inventories (31 Dec 2021) Inventories down 41%; 97% as at 31 Dec was commercial properties 31 Dec 31 Dec Projects 2021 2020 Details As at Cost Cost Completed properties RM’m RM’m RM68m 40 46 • Stratified commercial lots Leased to Co-labs Residential 3% Coworking (carrying value about RM20m) 3 13 • 2
Slide 35: Group Debt/Total Equity (D/E) Ratio
Group Debt/Total Equity (D/E) Ratio 31 Dec 2020 31 Dec 2021 Restated (Unaudited) (Audited) RM’m RM’m Borrowings 963.1 954.2 Cash & bank balances 178.2 204.3 Total equity* 1,687.1 1,679.3 Gross D/E ratio (times) 0.57 0.57 Net D/E ratio (times) 0.47 0.45 Weighted average interest rate (%) - floating 3
Slide 36: Disclaimer
Disclaimer Statement Regarding Unaudited Financial Information The unaudited financial information set forth above is preliminary and subject to adjustments and modifications. Disclaimer on Forward-Looking Statements This presentation may contain forward-looking statements that involve risks and unc
Slide 37: Thank You
Thank You www.pcb.my 37
Paramount Corporation Berhad — FY2021 Earnings Presentation on 6ix