SIME DARBY PROPERTY BERHAD Management Roadshow, London 22 – 23 March 2018 1 2
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SIME DARBY PROPERTY BERHAD Management Roadshow, London 22 – 23 March 2018 1 2 Presentation Outline 1 Sime Darby Property Today 2 Financial Performance 3 Transformation Journey 4 Growth Strategies 5 Deep Dive into Operations 6 Megatrend and Market Outlook 7 Appendices 3 Sime Darby 1 Property Today 4 Shareholding Structure RM1.41 Share Price 55.1% Share Price Movement (RM) 1.78 As at 14 Mar’18 1.41 1.11 Foreign Shareholdings 14.8% 10.5% RM9.6bn 4.7% Market Capitalisation Other Domestic Shareholdings 14.9% 6,800,839 Number of Ordinary and the public Shares (000’) Source: Tricor 5 Strong Board Governance and Management 10 8 6 3 Total Board Non-Executive Independent Women Members Directors Directors Directors Non-Independent Non-Executive Chairman Tan Sri Abdul Wahid Omar Sime Darby Property Board R i s k Governance & Nomination & T e n d e r Management A u d i t Remuneration C o m m i t t e e C o m m i t t e e C o m m i t t e e C o m m i t t e e • Accountable for holistic • Ensure effective • Oversee the process of • Responsible for all matters risk management corporate governance awarding significant relating to the nomination framework and efficacy contracts of new Directors and of internal controls assessment of Group Managing Director and his direct reports Group Managing Director Operational excellence and value Develop long-term strategies for creation Dato’ Sri Amrin Awaluddin sustainable growth Efficient employment of company Adhere to the highest standards on resources to deliver value to Management Team Environmental, Social and shareholders Governance (ESG) practices 6 The Largest Property Developer in Malaysia In terms of land bank size Property Development Active townships, integrated UNITED 23 and niche developments KINGDOM Acres of remaining THAILAND 20,743 developable land bank to be KEDAH developed over 10 -25 years Acres of land under option Helensvale, Queensland 20,599 agreements with Sime Darby 65 acres Berhad and Sime Darby GEORGETOWN, Plantation Berhad PENANG PENINSULA MALAYSIA AUSTRALIA Estimated Remaining Gross RM96bn Development Value (GDV) Average trading discount to 44% Realised Net Asset Value (RNAV) SELANGOR Property Investment 3,321 acres 3,196 acres Sq. ft. of net commercial 2,834 acres space in Malaysia and NEGERI 1.4mn SEMBILAN Singapore 1,462 acres Hospitality & Leisure JOHOR Assets across 4 countries BANDAR UNIVERSITI PAGOH including 2 golf courses (36- 3,297 acres hole & 18-hole respectively) Key Developments 6 Employees and a convention center North-South Expressway Singapore HSR line High Speed Rail (HSR) HSR Hubs HSR Hubs on Sime Darby Property’s land bank 1,594 7 Key Investment Highlights #1 #2 #3 Largest developable Strategic locations with Recognised brand with land bank in Malaysia full spectrum of products established track record • 20,743 acres with remaining • Strategically located in Negeri • Good track record of over 40 estimated GDV of RM96bn Sembilan and Johor to benefit from years in property development Malaysia Vision Valley and High • Additional 20,599 acres of • Successfully transformed Speed Rail (HSR) projects lands under Options former estate lands into major Agreements with Sime Darby • Two HSR stations are on Sime townships Plantation Berhad and Sime Darby Property’s land bank in Darby Berhad Seremban and Pagoh Taman Subang Melawati Jaya • ~84% of the total land bank • Located in growth areas with robust Since 1972 Since 1976 located in Selangor and Negeri economic activities and superior Sembilan accessibility to major road systems • Received awards over the years and railways for excellence and distinctions • All freehold developments except for developments in Bandar • Well positioned along the Guthrie Universiti Pagoh and ALYA Corridor Expressway (GCE) and West Coast Expressway • Competitive advantage to monetise non-strategic land • Sustainable earnings contribution Putra Brand Awards 2017 StarProperty.my Awards for the next 15 – 20 years Gold Award in Property 2017 Transit Oriented / Category Top Ranked Developers (7 consecutive years) of the Year Adjacent Developments City of Elmina, Bandar Bukit Raja, Selangor Klang Developments along Developments with BCI Asia Awards 2017 major highways (e.g. High Speed Rail Transit Noble Excellence Awards 2017 Top 10 Developers Guthrie Corridor Stations Gold, National Best Awards in Malaysia Expressway) Integrated Development of the Year Elmina M’sia Guthrie Bdr. Bukit Serenia Bdr. Uni. Option East & Vision Corridor Raja City Pagoh Agreement 8 West Valley Accelerated Growth along the Guthrie Corridor Lagong 1,552 acres 10,297 acres of land bank Gamuda along Guthrie Corridor Expressway Garden with remaining GDV of more than RM20 billion • 70% of total land bank are on Kota Elmina ongoing developments 1,540 acres • 30% on future developments (Kota Elmina and Lagong) Elmina West 2,661 acres Good connectivity: Elmina East Forest GCE, DASH, NKVE, LATAR and 1,089 acres Reserve NSE Denai Alam & Mass Rail Transit-1 (MRT 1) and Bukit Subang Keretapi Tanah Melayu Line 1,250 acres DASH (KTM) RRI Ara Damansara Setia ECO Park 693 acres Setia Alam Bukit Jelutong Legend Bdr. Bukit Raja 2,205 Ongoing developments acres Future developments 1,2 and 3 Guthrie Corridor Expressway 4,333 acres Damansara-Shah Alam Elevated Expressway (DASH) Subang Jaya New Klang Valley Expressway (NKVE) 2,241 acres KL-Kuala Selangor Expressway (LATAR) North-South Expressway (NSE) Federal Highway Elmina M’sia Guthrie Bdr. Bukit Serenia Bdr. Uni. Option East & Vision Corridor Raja City Pagoh Agreement 9 West Valley Elmina East and West - A Wellness Hub 3,750 acres (Remaining: 3,174 acres) Elmina City Centre straddles both sides of the GCE from the Elmina West to Elmina East, forming a prime integrated development hub RM19.0bn Estimated Remaining GDV 26,809 units Total estimated residential units 300 acres Elmina Central Park 2,700 acres Tasik Subang Dam Forest Reserve 42 acres Wellness Cluster 90 km Combined jogging and cycling track Launches to date with total GDV of >RM2.4bn Elmina Valley 1 Elmina Valley 2 Elmina Valley 3 (2-storey house) (2-storey house) (2-storey house) 341 units 309 units 357 units From RM586,888 From RM645,888 From RM619,888 Elmina M’sia Guthrie Bdr. Bukit Serenia Bdr. Uni. Option East & Vision Corridor Raja City Pagoh Agreement 10 West Valley Bandar Bukit Raja - Highly Connected Industrial / Township 4,333 acres (Remaining: 2,834 acres) Close proximity to KLIA and Port Klang (22 km) RM13.9bn Estimated Remaining GDV 21,858 units Total estimated residential units 82,000 residents Expected population at full capacity > 800 acres Industrial Business Park 125 acres Town Park High Connectivity via major road infrastructure Jalan Meru, New North Klang Straits Bypass (Shapadu Highway) and upcoming West Coast Expressway (WCE) Launches to date with total GDV of > RM3.8bn Casira 2 Persada Azira (2-storey house) (2-storey house) (2-storey house) (20 km) 111 units 230 units 230 units (63 km) From RM738,888 From RM658,888 From RM678,888 Elmina M’sia Guthrie Bdr. Bukit Serenia Bdr. Uni. Option East & Vision Corridor Raja City Pagoh Agreement 11 West Valley Serenia City - Industrial and High Technology Hub 2,370 acres (Remaining: 1,462 acres) Close proximity to Kuala Lumpur, Putrajaya, Cyberjaya and KLIA RM7.6bn Estimated Remaining GDV 12,522 units Total estimated residential units 197 acres Industrial Components High Connectivity Accessible via ELITE Highway, Federal Road, ERL & KLIA Educational & Retail Catalysts • Xiamen University First Chinese university branch campus in Malaysia with a capacity of 10,000 students • Horizon Village Outlet 150 one-storey retail lots over total net lettable area of 400,000 sq ft with 2,000 covered parking bays Launches to date with total GDV of ~RM190mn Cipta 1 Cipta 2 (Detached Factory) (Industrial Plot) 9 plots (20.73 acres) C5 (Industrial Plot) 1 plot (10.79 acres) 15 units From RM8,174,720 Elmina M’sia Guthrie Bdr. Bukit Serenia Bdr. Uni. Option East & Vision Corridor Raja City Pagoh Agreement 12 West Valley Well Positioned to Benefit From Malaysia Vision Valley (MVV) A new economic corridor and a Premier Urban Transformation Region under the National Transformation Agenda To To Bangi Kajang MVV Total Area: 379,086 acres Elite Highway Nilai Impian 1 & 2 (1,809 acres) Sime Darby Property’s Interest: SELANGOR Owned: Parcel A of 3,196 acres Parcel A: MVV Option Agreements: Additional 8,793 Proposed 3,196 acres High Speed acres (currently held by SD Berhad) Rail Station SD Plantation: ~70,000 hectares Bandar Ainsdale (562 acres) KLIA Parcel A : High Technology And Industrial Additional Park 8,793 acres • A critical investment corridor for Negeri SEREMBAN Sembilan • Limited land for industrial developments in To Nilai & Senawang PORT Johor DICKSON North- • Increased foreign and local demand for high South Highway technology hub STRAITS OF MALACCA • Continuation of Putrajaya, Cyberjaya and Kuala Lumpur International Airport Legend development area Sime Darby Property’s land • Leverage on existing developed infrastructure Sime Darby Berhad’s land MALACCA & proposed HSR project Sime Darby Plantation’s land Elmina M’sia Guthrie Bdr. Bukit Serenia Bdr. Uni. Option East & Vision Corridor Raja City Pagoh Agreement 13 West Valley Bandar Universiti Pagoh – A University Town 4,099 acres (Remaining: 3,297 acres) Malaysia’s First Integrated Township with an Education Hub RM5.1bn Estimated Remaining GDV 5,671 units Total estimated residential units 238 acres Industrial Business Park High Speed Rail The “Muar” Station within vicinity of township Pagoh Education Hub First Multi-Varsity Education Hub and Catalyst to BUP • 506 acres development • 4 major institutions • 6,000 current student population with a maximum student capacity of 10,800 students • 60:40 JV between Sime Darby Property and Tunas Selatan Construction Launches to date with total GDV of ~RM211mn Harmoni Vista Sarjana Square Sarjana Promenade (DSLH) (Shop Office) (Shop Office) 383 units 35 units 35 units From RM365,888 From RM888,888 From RM950,000 Elmina M’sia Option Guthrie Bdr.