Financial Year 2019 (FY2019) Results Announcement Second Quarter Ended 30 June 2019 29 August 2019 Financial Highlights for Second Quarter of FY2019 (2QFY19) and First Half of FY2019 (1HFY19) Ended 30 June 2019

2 2QFY19 and 1HFY19 Ended 30 June 2019

In RM’m 2QFY19 2QFY18 YOY % 1HFY19 1HFY18 YOY %

Revenue 865.9 617.4 40.3 1,441.0 1,176.9 22.4

Segment Results 174.7 47.0 271.7 248.3 72.6 241.9

PBIT 150.6 45.5 231.0 428.6 82.7 418.3

PBT 179.5 73.8 143.1 480.9 116.8 311.7

PATAMI 205.3 46.6 340.8 470.3 80.2 486.2

Basic EPS (sen) 3.0 0.7 340.8 6.9 1.2 486.2

2QFY19 vs 2QFY18 1HFY19 vs 1HFY18

C • Higher Revenue of +40.3% YoY due to: • Higher Revenue of +22.4% YoY due to: • Higher development profits as a result of higher • Higher sales and development activities progress O sales and development activities from Bandar Bukit from Cantara Residences, BBR, Serenia City and City M Raja (BBR), , Nilai Impian and City of of Elmina Elmina • Development land sales at BBR and Bandar Ainsdale M • Development land sales at BBR and Bandar – RM159.0m Ainsdale – RM159.0m • Non-core strategic land disposal (Bukit Selarong) – E • Non-core strategic land sale (Bukit Selarong) – RM88.9m N RM88.9m T • PBIT improved +231.0% YoY attributed by: • PBIT rose +418.3% YoY due to: A • Lower operating cost of RM87.8m vs RM99.5m in • Higher contribution from property 2QFY18, an improvement of 11.8% YoY development R • Gain on Bukit Selarong land sale of RM81.1m • Disposal gains on properties in Singapore of Y • Higher share of losses of JV/Associates of RM14.9m RM208.8m vs Other gains of RM9.4m in • Offset by write-down and provisions of RM(58.6)m 1HFY18 • Offset by one-off items of RM(58.6)m 3 Improvements in Core Earnings

REVENUE KEY TAKEAWAY

In RM’m 2QFY19 2QFY18 % 1HFY19 1HFY18 % 1. Revenue: Largely derived from core operations Reported 865.9 617.4 40.3 1,441.0 1,176.9 22.4 revenue 2. PBIT: Excluding one-off items of Non-core RM231.3m in 1HFY2019, core PBIT (88.9) (3.4) (88.9) (3.4) land sales higher by 162.7% driven by higher contribution from Core 777.0 614.0 26.5 1,352.1 1,173.5 15.2 Property Development Revenue

One-off items in 1HFY2019: PBIT Gain on Bukit Selarong land 81.1 2QFY18 2QFY19 1HFY18 1HFY19 sale 82.7 428.6 Gain on disposal of properties 45.5 150.6 208.8 in Singapore Impairment and provisions (30.1) 197.3 Provision for outstanding obligation on an investment (28.5) property disposed in FY2017 123.7 231.3 7.6 75.1 2.0 43.6 27.0 Total one-off items 231.3 (54% of total PBIT) 2QFY18 2QFY19 1HFY18 1HFY19 1HFY2019 Core PBIT 197.3 One-off items Core PBIT

4 Segment Results for 2QFY19

In RM’mil 1,108% 2QFY18 vs 2QFY19 2QFY18 176.8 2QFY19

96% 53% 40.5 14.6 1.8 (8.1)(3.8)

PROPERTY PROPERTY LEISURE & DEVELOPMENT INVESTMENT HOSPITALITY

 Higher development profits as a result of higher sales and development activities from Bandar Bukit Raja, Bukit Jelutong, Nilai Impian and City of Elmina and further enhanced with core land sales in Bandar Bukit Raja (50 acres) and Bandar Ainsdale (15 acres) of RM55.8m and RM10.1m, respectively Property  Gain on disposal of Bukit Selarong land (300 acres) of RM81.1m Development  Offset by development provisions and write-down/write-off of property development cost and impairment of inventories of RM(30.1)m  Higher share of loss of JV/Associates of RM13.8m (2QFY18: Loss of RM6.3m)

 Prior year’s result included the profit from supply of teaching equipment of RM29.6m from the concession Property arrangement and gains on disposal of investment properties in United Kingdom of RM9.4m  Recorded a share of profit from SD Capitamall of RM0.2m (2QFY18: Loss of RM0.7m) due to higher Investment occupancy rate achieved at Melawati Mall of 86% (2QFY18: 80%)

Leisure &  Higher loss recorded in previous year as TPC, KL - West Course was under renovation Hospitality 5 Segment Results for 1HFY19

1HFY18 In RM’m 410% 1HFY18 vs 1HFY19 248.6 1HFY19

78% 36% 48.7 37.3 8.4 (13.4) (8.6)

PROPERTY PROPERTY LEISURE & DEVELOPMENT INVESTMENT HOSPITALITY

 Higher development profits due to higher sales and development activities from Cantara Residences, Bandar Bukit Raja, Bukit Jelutong, Nilai Utama and City of Elmina and completion of core land sales in Property Bandar Bukit Raja (50 acres) and Bandar Ainsdale (15 acres) of RM55.8m and RM10.1m, respectively Development  Gain on disposal of Bukit Selarong land (300 acres) of RM81.1m  Offset by development provisions and write-down/write-off of property development cost and impairment of inventories of RM(30.1)m  Lower share of loss of JV/Associates of RM12.0m (1HFY18: Loss of RM25.3m)

 Higher contribution from facility and asset management services of RM4.9m (1HFY18: RM4.2m)  Higher share of profit from SD Capitamall of RM1.5m (1HFY18: Loss of RM0.1m) due to higher Property occupancy rate achieved at Melawati Mall of 86% (1HFY18: 79%) Investment  Offset with share of loss from Shaw Brothers of RM1.1m (1HFY18: Profit of RM2.3m)  1HFY18 included the one-off contribution from the delivery of teaching equipment of RM29.6m at Pagoh Education Hub

Leisure &  Lower operating loss recorded by TPC, Kuala Lumpur of RM0.1m (1HFY18: Loss of RM5.5m) due to higher revenue recorded during the period Hospitality 6 Cash and Borrowings as at 30 June 2019

Cash & Cash Equivalents (In RM’m) • Higher net cash inflow from operating activities mainly due to 1,000.0 64.6 higher sales from KLGCC Resort (East 900.0 184.7 7.1% Residence), Melawati, Bukit Jelutong, Cantara Residences and City of Elmina 800.0 695.2 700.0 649.1 (202.1) (1.0) • Positive net cash flow from investing 600.0 activities mainly due to proceeds from 500.0 disposal of Darby Park Executive Suites 400.0 and Orion Apartment in Singapore. A portion of the proceed was invested in 300.0 Battersea (RM170.0m) 200.0 100.0 • Net cash used in financing activities 0.0 include finance costs paid (RM89.6m), 31-Dec-18 Operating Investing Financing Foreign 30-Jun-19 net repayments of borrowings Activities Activities Activities Exchange (RM35.3m) and dividend paid (RM68.0m) Group Borrowings (In RM’m)  Repayment of revolving credits, 30-Jun-19 31-Dec-18 partly offset by new long term borrowings raised 1,347.8 1,119.0 Gross D/E Ratio (35%) (41%) 32.8% (31 Dec’18: 34.6%) 3,231.1 3,273.0 Net D/E Ratio 25.8% (31 Dec’18: 27.8%) Long Term 1,925.2 2,112.1 (59%) 7 Short Term (65%) Operational Performances for 2QFY19 and 1HFY19 Ended 30 June 2019

8 Property Development Inventories

Total Inventories Unsold Units by Development

In RM’m 0.1% 10.8% By RM6,751.1m RM6,757.1m 4,449 Type 4,016

2,127.6 2,114.3 572* 1,641^ Others Landed 6% 27%

High-rise 2,504.1 2,504.1 2,561 34% 2,059

22.2% of New Statutory 1,248.0 1,393.2 Launches 33% 883 871.3 745.5 749

31 Dec'18 30 Jun'19 31 Dec'18 30 Jun'19

Land Held for PD Completed Units Ongoing New Launch Ongoing - Future Developments Ongoing - Launched Developments 1 * Number of units launched from July – Dec’18 Completed ^ Number of units launched from Jan – Jun’19

 Higher inventories held by  Lower completed units by 15.2% ongoing launched especially: developments (+11.6%)  Serini at (sold 42 units)  Completed stocks reduced by  East Residence at KLGCC (sold 21 units) 14.4% as a result of sales and  New launch stock in 1HFY19 rose +186.9%, marketing efforts for East mainly from Rumah Selangorku project at Elmina Residence, KLGCC Resort and West (562 units) and landed properties (Elsa & Serini, Taman Melawati Kyra) at Bandar Bukit Raja (245 units) 9 Note: ¹ Costs of new launches as at 30 June 2019 mainly from The Ridge, KL East (31 December 2018: Cipta 3, Serenia City) Sales Performance for 1HFY2019

Sales Achieved Units Sold Sales by Location (In RM’m) (In units) (In RM’m)

1 (0%) 88.9 503.6 170.7 134 (6%) (36%) (12%) (8%) 54.5 441 (4%) 321.0 (27%) (23%) RM1,399.9m 1,649 20.3% YoY 88.9 13.1% YoY (6%) (vs. RM1,163.3m) (vs. 1,897) 323.2 (23%) 7.8 819.3 (1%) 1,073 (59%) (65%) 422.0 (30%)

Along GCE Greater Negeri Sembilan  Aggressive sales and  Lower units sold YoY as Kedah Johor marketing efforts via prior year included the Primetime 8 and Pop Raya sales of 542 units of  Largely derived from our Campaigns, resulting in Rumah Selangorku flagship townships at positive sales momentum homes at Putra Bandar Bukit Raja, City of and take-up rates Heights, against 253 Elmina and Serenia City  59% and 23% were statutory units recorded in recorded from Ongoing 1HFY2019 Developments and New Launches, respectively. 10 Sales Mainly Driven By Landed Properties Unique Sales Achieved: RM1,399.9m Propositions Affordable homes at In RM’m Statutory highly connected Commercial 64.1 locations 25.7 (255 units) (24 units) Transit-oriented and High rise transit-adjacent 216.8 developments (321 units)

Core land 218.2 (18 units) Mid-range landed properties at strategic locations to suit current demand Landed 875.1 (1,031 units)

11 Unbilled Sales By Location

In RM’m  Unbilled Sales of RM1,531.0 RM1,531.0m RM1,478.4m million is an improvement of 3.6% from RM1,478.4 million as 5.3 10.4 3.6% at 31 Dec’18 57.0 83.4  As a result of higher sales 286.2 recorded during the PrimeTime 320.9 8 Campaign held in March – April 2019.

505.5  66.7% of Unbilled Sales is 435.4 consisted of Township Developments, mainly from Elmina West and Bandar Bukit Raja, whilst the Integrated Development’s portion was hugely 677.0 628.3 contributed from Senada Residences, KLGCC Resort and The Glade, .

 Revenue recognition for As at Jun' 19 As at Dec' 18 next 3 years FY19 FY20 FY21 66% 26% 8% Greater Klang Valley Along GCE Klang Negeri Sembilan Johor

12 Demand-Driven Launch Pipeline in FY2019

Gross Development Value (In RM’m)

Units 526 1,556 875 1HFY2019 Take-up Launched 2,082 units, rates* 93% 75% GDV of RM1,202.4m

~1,000 839.6 362.8 2HFY2019 Target GDV of Jan - Mar 2019 Apr - Jun 2019 July - Dec 2019 ~RM1.0 billion Actual Actual Forecast

*Take up rate as at 11 August 2019

FY2019 Launch GDV FY2019 Launch GDV By Product Type By Location

1% 0.02% Along GCE 17% Landed 21% Klang High Rise 37% 5% Greater Klang Commercial 52% Valley Industrial 30% Negeri Sembilan 22% Others 15% Johor 13 Continuous Marketing Efforts to Maintain Momentum from Primetime 8 and Pop Raya

July – September 2019 CAMPAIGN HIGHLIGHTS

• To clear the inventories for New Launches, Ongoing Developments and Completed Projects • To continue the sales momentum from previous two marketing campaigns

Launches at some of Enjoy stamp duty Incredible deals An extra RM2,000 rebate the best-selling savings from on selected on top of existing rebates townships: RM15,696* for properties each should they choose to • Bandar Bukit Raja the next new weekend and purchase a SDP home • Serenia City launches only valid for during the Spotlight 8 • Bukit Jelutong *based on price of that specific Campaign period • RM628,888 weekend (T&C applies) 14 July – December 2019 Launches

July – Sept’ 2019 Launches Oct – Dec’ 19 Future (New Launches under Spotlight 8) Launches

Value: RM312.6m Units: 397 Value: ~RM700.0m Units: 478

Bandar Bukit Raja Value by Type (Laman Lakeside) (Semi-Detached Residential)

No. of Units : 25 units Residential Landed 24% Value : RM42.0 million 24% Launch Date : 27 July 2019 Commercial

12% Serenia City (Arina) Industrial (2-storey Link House) 40% No. of Units : 100 units Lot (Industrial) Value : RM56.5 million Launch Date : August 2019

Value by Location Bukit Jelutong Along GCE (Lagenda Gardens) (2-storey Link House) Greater Klang Valley No. of Units : 38 units Value : RM43.5 million 26% Klang Launch Date : September 2019 51% N. Sembilan Subang Jaya (Aurora) 11% (Serviced Apartment) No. of Units : 234 units Value : RM170.6 million 12% Launch Date : September 2019 15 Asset Monetisation Initiatives in FY2019

Total gains of RM289.9million

300 acres of industrial land at Bukit Selarong estate, Kedah

 Sold for RM88.9m Target  Completed in May 2019 completion by  Recorded a gain of RM81.1m 4QFY2019

Darby Park Executive Suites, 1.16 acres of freehold Singapore land at Jalan U-Thant, Kuala Lumpur  Sold for RM280.5m  Completed in Jan 2019  Recorded a gain of RM203.4m 2 units of holiday bungalows on 1.71 An apartment unit at The acres of freehold land Orion, Singapore at Pulau Tikus, Pulau Pinang  Sold for RM10.4m  Completed in June 2019

 Recorded a gain of RM5.4m 16 Key Highlights

1 2 3 First Drive-thru KFC Sime Darby Property’s Launched Great in Bandar Universiti Inclusion into Minds Campaign to Pagoh (BUP) on 23 FTSE4Good Index for Promote Mental Apr’19 2nd consecutive year Health Awareness on 23 Jul’19 • Via strategic partnership with QSR Brands Holdings Berhad  A 5-month campaign till November 2019 • To enhance township’s value  In collaboration with Yayasan proposition and meet the Sime Darby, and campaign demand of its burgeoning partners, the Mental Illness student population Awareness and Support Association (MIASA) and Malaysian Mental Health Association (MMHA) • Successfully selected as an index constituent for 1. FTSE4Good Bursa Index 2. FTSE4Good ASEAN 5 Index 4 Delivery of completed • For the period of Jul’19 to units in 1HFY19: 259 Jun’20 Aims to focus on 3 critical  Bandar Universiti Pagoh 177 • Highlights Sime Darby areas:  Bandar Bukit Raja 82 Property’s commitment in i. Raising awareness ensuring only the highest ii. Early identification of mental standards in ESG practices health issues iii. Engaging stakeholders on 17 caring their mental health Moving Forward

18 Future Prospects Supported by Focused Strategies

To reduce overhead Reduce unsold stocks for costs in order to efficient cash flow and drive higher profit working capital margin management

F O C U S Grow recurring AREAS To extract the income base by highest value of the offering industrial land bank at flagship products townships Unlock value of the sizeable land bank

Actively pursuing strategic partnership and execute land monetisation for non- core land

19 Conclusion

Significant improvement on core earnings driven by positive 1 sales momentum and higher revenue growth on development activities

Actively clearing unsold inventories, particularly completed 2 stocks

Backed by positive operating cash flow with continuous focus 3 on working capital management

Emphasise on active land bank management to unlock value 4 of the Group’s sizeable land bank to develop Industrial & Logistics Business Segment and grow recurring income base

On Track to meet FY2019 Targets

1HFY19: RM1.2bil Launch GDV Target of RM2.0 – 2.5 billion 1HFY19: RM1.4bil Sales Sales Target

20 THANK YOU

SIME DARBY PROPERTY INVESTOR RELATIONS

Email Address : [email protected] Telephone : +(603) 7849 5000 Website : https://www.simedarbyproperty.com/investor-relations

21 APPENDICES

22 Sustainable Growth with Remaining Developable Period of 10 to 25 years As at 30 June 2019 By Remaining By Remaining Gross Developable Land Development Value (GDV)

1,462 8.9 (12%) (11%) 19.6 321 3,296 (25%) (28%) O (3%) N G O 2,793 11,942 27.8 RM79.3 5.0 I (23%) (35%) acres 828 billion (6%) N (7%) 5.5 G (7%)

3,242 12.4 (27%) (16%) Legend 1,731 0.02 F (21%) 0.3 (0.3%) 3,092 (4%) U (38%) T 8,125 RM8.1 U billion acres (Currently only includes R Kota Elmina, E and Planters’ Haven) 3,302 7.8 (41%) (96%) Notes: 1. Township categorisation: • Guthrie Corridor: (Ongoing) Elmina West, Elmina East, & and Bukit Jelutong, (Future) Kota Elmina & Lagong • Negeri Sembilan: (Ongoing) Nilai, Bandar Ainsdale, Planters’ Haven & Chemara, (Future) MVV and others • Johor: Bandar Universiti Pagoh and Taman Pasir Putih • Greater Klang Valley & Others: 23 • (Ongoing) , KLGCC Resort, Putra Heights, KL East, USJ Heights, Taman Melawati, , SJCC and SJ7 • (Future) Jalan Acob, Victoria Estate and others Launches of Statutory/Affordable Collection As at 11 August 2019

2018 (Jan – Dec)

Take-up Average Price Per Township Name Type Units (%) Unit (RM) Double-storey Nilai Utama Orkid 132 99 ~450,000 Link House Double-storey Nilai Utama Anggerik 142 100 ~500,000 Link House 2019 (Jan – Dec)

Take-up Average Price Township Name Type Units (%) Per Unit (RM) Bandar Universiti Harmoni Double-storey 60 73 ~430,000 Pagoh Permai Link House Bandar Bukit Double-storey Elsa 165 99 ~470,000 Raja 1 Link House Statutory Elmina West Harmoni 1 562 47 ~240,000 Apartment Bandar Bukit Double-storey Kyra 194 91 ~652,078* Raja Link House BA7A : DSLH Double-storey Bandar Ainsdale 74 ~460,000 (20'x65') Link House

Not yet launched – expected to be launched in 4QFY2019 24 *Price before rebates and discounts