Invest Asean Singapore 27-28 March
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<XX> | <XX> UEM …SUNRISE BERHAD CORPORATE PRESENTATIONby INVEST ASEAN… SINGAPORE 27 - 28 March 2018 1 Strictly private and confidential Director Induction Pack | March 2018 UEM<XX> Sunrise | <XX> Corporate Presentation Content ▪ UEM Sunrise at a Glance ▪ Industry position ▪ Assessment of UEMS ▪ Our Portfolio ▪ Performance Highlights 2 Strictly private and confidential Invest Asean Singapore | March 2018 UEM<XX> Sunrise | <XX> Corporate Presentation | UEM Sunrise at a Glance We are the flagship company for township and property development businesses of UEM Group and Khazanah Nasional Bread ▪ UEM Group Berhad and Khazanah National Berhad’s flagship company for property business ▪ Core businesses includes macro township development; high rise residential, commercial, retail and integrated developments; as well as property management and project & construction services. Shareholding structure* Market Performance* Shareholder, % As at 06 March 2018 Others Local 14.97% Share price RM1.03 Market Cap RM4.674bil Tabung Haji 7.37% Khazanah via UEM Group P/E ratio 66.06% 16.69 *As at Feb 2018 Source : Bloomberg 3 Strictly private and confidential Invest Asean Singapore | March 2018 UEM<XX> Sunrise | <XX> Corporate Presentation | UEM Sunrise at a Glance Overview of our Business PRODUCTS/BUSINESSES WITHIN UEM SUNRISE Southern Industrial Logistics Clusters (SiLC) MASTER INDUSTRIALS DEVELOPER Iskandar Puteri Nusajaya Tech Park JV) Gerbang Nusajaya Bio-XCell (JV) Nusajaya Industrial Park Taman Nusantara Serene Heights Nusa Bayu Bayu Nusantara Nusa Idaman East Ledang AFFORDABLE TOWNSHIP Denai Nusantara Forest Heights (JV) Estuari HOUSING DEVELOPMENT Horizon Hills (JV) Melia Residences Rumah Selangorku Serimbun Kiara Kasih (RUMAWIP) Fraser Metropolis (JV) Symphony Hills Teega Aurora Anjung Mall of Medini Residensi Sefina Imperia Conservatory Hyatt House KL (Hotel) PROPERTY Publika NICHE & HIGH Residensi 22 Almas Mayfair Car Parking Management INVESTMENT & ASSET/FACILITIES RISE Somerset (JV) Club Houses DEVELOPMENT MK28 MANAGEMENT Arcoris Emerald Bay (JV) Residensi Solaris Parq 4 Strictly private and confidential Invest Asean Singapore | March 2018 UEM<XX> Sunrise | <XX> Corporate Presentation | UEM Sunrise at a Glance Our numbers at a glance Revenue Sales PATANCI RM2,903.4 mil RM1,491.7 mil RM280.1 mil +58% increased from 2016 +24% increased from 2017’s target +90% increased from 2016 (RM147.3 77% from the total revenue is from Contributed by new launches i.e. Solaris mil in FY2016) property development Parq Residences, Mayfair (Melbourne), Improvement is mainly due to strong Estuari Gardens (Puteri Harbour) revenue growth as well as, gains from Contributions by Region divestment activities and Forex Revenue Contributions by Region Sales 22% Largest contributors are Mayfair, Estuari Gardens, Melia, Conservatory, 43% Aurora Melbourne Central, Almas 27% Aurora Unbilled Sales Residensi 22 Mont’Kiara & 29% 35% Conservatory Solaris Parq, Serene RM4.8 bil Heights, Verdi 44% As at 31 December 2017 International Southern Central International Central Southern Recent Land Acquisition Revenue from land disposal Total GDV of Projects Launched from total revenue Equine Park land 19% in Seri Kembangan, Selangor Land disposed – in Richmond, Canada RM2.0 bil & pocket lands in Iskandar Puteri exceeding 2017’s target of RM1.7bil 19.2 acres from Kemaris Residences Sdn Bhd 5 Strictly private and confidential Invest Asean Singapore | March 2018 UEM<XX> Sunrise | <XX> Corporate Presentation | UEM Sunrise at a Glance Remaining landbank No Land Details Southern Central International 1. Remaining phases of ongoing developments 1,310.0 471.1 - 2. Land with potential pipeline developments 6,870.5* 105.6 30.7 3. Remaining land of catalytic developments 709.2 - - 4. Land with no immediate development plan 938.1 23.4 - Total (Acres) 9,827.7 600.1 30.7 Lands with no Southern Central Tapah Total (Acres) immediate development plans 938.1 23.4 2,405.0 3,366.5 *The bulk of it is the remaining Gerbang Nusajaya lands (2,247 acres) and Kulai lands (Fraser Metropolis, JV with KLK) 2,500 acres. The Gerbang Nusajaya lands currently have no immediate development plans 6 Strictly private and confidential Invest Asean Singapore | March 2018 UEM<XX> Sunrise | <XX> Corporate Presentation | UEM Sunrise at a Glance We partner with various developers / entities for various development and Iskandar catalytic projects Iskandar Coast 20% 40% 40% 45% 49% 50% 50% 50% 50% Nusajaya Premier Cahaya Jauhar Sdn Aura Muhibah Sdn Nusajaya Lifestyle Desaru Horizon Hills Nusajaya Consolidated Sime Darby Sunrise Dev Gerbang Leisure Sdn Bhd Bhd Bhd Sdn Bhd JVCos Dev Sdn Bhd Sdn Bhd Sdn Bhd Park Sdn Bhd Desaru Residential South Kota Iskandar Mall of Medini Horizon Hills Fraser Metropolis Residences Somerset & The Waves Radia Gerbang Nusajaya 80% 60% 60% 55% 51% 50% 50% 50% 50%* 50% 40% 40% 40% 40% 40% 30% 30% 25% Sunrise MCL Sdn Bio-Xcell Sdn Bhd Haute Property Sdn Nusajaya Tech Park Scope Energy Sdn Sarandra Malaysia Fastrack Iskandar UEM Sunrise Setia Haruman Bhd Bhd Sdn Bhd Bhd Sdn Bhd Sdn Bhd Edgenta Sdn Bhd Sdn Bhd Forest Heights, Puteri Harbour Property Cyberjaya Emerald Bay Nusajaya Tech Park Gerbang Land Fastrack City Seremban Bio-XCell Marina Management 50% 60% 60% 60% 60% 60% 70% 70% 75% 7 Strictly private and confidential Invest Asean Singapore | March 2018 UEM<XX> Sunrise | <XX> Corporate Presentation | Industry position We are one the largest property developers in Malaysia FY2017 Sales RM bil Sales RM bil $ 4.0 4.1 1.0 1.8 1.4 1.5 1.0 Eco World SP Setia Tropicana Mah Sing IJM* UEMS Sunway Market Cap RM bil 3.8 11.9 1.3 2.8 9.8 4.7 7.7 *Note: Market capital as at 6 March 2018; IJM financial year ended 31 March 2017 Source: Companys’ website, Bursa Malaysia, Bloomberg 8 Strictly private and confidential Invest Asean Singapore | March 2018 UEM<XX> Sunrise | <XX> Corporate Presentation | Industry position The Edge Top Property Developers Awards 2017 We improved our overall ranking in 2017 in several key qualitative areas Overall Ranking Qualitative Ranking 2015 2016 2017 8 Overall 10 14 6 Value Creation 8 2015 2016 2017 Capital Appreciation 12 Product Quality 9 8 15 7 Service, Finishing, Timeliness 6 Image 9 9 14 Management Style, Credibility, Effectiveness 10 Innovation & Creativity 6 14 7 Product, Marketing Bayu Nusantara Merit Award Expertise 11 15 16 Management, Experience 9 Strictly private and confidential Invest Asean Singapore | March 2018 UEM<XX> Sunrise | <XX> Corporate Presentation | Assessment of UEMS Our Progress So Far and What’s Ahead (1/3) Focus Areas Transformation efforts2017 in 2017 Expected Deliverables2018 for 2018 20192019 20202020 Executed Inventory Monetization initiatives – ▪ Continue inventory monetisation ▪ Remaining inventory ✓ EasyOwn scheme (Differential sum loan, Rent- programme cleared To-Own: Houzkey) materialised ~ RM315 mil key Ramp up on Rent-To-Own More established ownership inventory cleared ▪ ▪ offerings solutions and schemes 1 Cleared chunks of inventory through bulk sales ✓ ▪ Organize Property Bidding event ✓Strategic divestments of Iskandar land for selected products Strengthen • 164 acres sold to Country View : RM310 mil Balance Sheet ▪ Full impact of turn-around • 29 acres sold to Kimlun : RM82 mil initiatives realized against goals e.g. target 10% ✓Developed Customer Experience Program (CXP) ▪ Design and establish a ▪ CSC set up and running focused on enhancing handover/VP process centralized customer service smoothly savings on 30% cost base, - CSS Survey results improved from 66 to 75% centre (CSC) to provide RM3 bil GDV per year with 2 seamless customer experience ✓Implemented CXP enhancements on Teega higher uptake rate (85%) (OSC), Arcoris, Bayu Angkasa/ Radia and ▪ Develop and deploy a customer ▪ Monitored performance of Customer Residensi 22 handover / vacant possession care mobile app initiatives against goals, and Experience adjusted plans accordingly ✓Various events held at Puteri Harbour – ▪ Clear and consistent brand voice, ambition and strategy across Iskarnival, IP Kayak Challenge, Sambutan Hari customer, investor and employees ▪ Significant progress in Habitat etc. ▪ Segmentize target market and develop compelling key message strategic repositioning of the Establish Imperia as UEMS Southern organization 3 ✓ Balance out disproportion of current advertising expenses against headquarters ▪ competitors and across mediums Applied Design Thinking approach to redesign ✓ ▪ Establish and execute a digital marketing strategy Brand Mall of Medini customer engagement experience Enhancement and Solaris Parq Plot B Retail ▪ Enhance Puteri Harbour infra and Promenade ▪ Revisit design of Puteri Harbour Convention Centre ▪ Build Marina Yacht Club and Marina and Estuari Sports Complex ▪ Complete Mall of Medini enhancement works 10 Strictly private and confidential Invest Asean Singapore | March 2018 UEM<XX> Sunrise | <XX> Corporate Presentation | Assessment of UEMS Our Progress So Far and What’s Ahead (2/3) Focus Areas Transformation efforts2017 in 2017 Expected Deliverables2018 for 2018 2019 2019 2020 2020 ✓Increase presence in Central region ▪ Acquire large parcel of land in Central ▪ Activation of the new region for UEMS’ next flagship Mont Kiara Acquired 19.2 acres in Taman Equine for ▪ development RM110 mil 4 ✓Selected master planner for Gerbang Nusajaya Growth (Organic/ Inorganic) ▪ Full impact of turn-around Strengthen Organization Structure ▪ Fully operational P&L structure initiatives realized against implemented goals e.g. target 10% ✓Appointed