KLCCP Stapled Group Financial Results 4Th Quarter Ended 31 December 2020 27 January 2021 DISCLAIMER
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KLCCP Stapled Group Financial Results 4th Quarter ended 31 December 2020 27 January 2021 DISCLAIMER These materials contain historical information of KLCC Property Holdings Berhad and KLCC Real Estate Investment Trust (collectively known as KLCCP Stapled Group) which should not be regarded as an indication of future performance or results. These materials also contain forward-looking statements that are, by their nature, subject to significant risks and uncertainties. These forward-looking statements reflect the KLCCP Stapled Group’s current views with respect to future events and are not a guarantee of future performance or results. Actual results, performance or achievements of KLCCP Stapled Group may differ materially from any future results, performance or achievements expressed or implied by such forward-looking statements. Such forward-looking statements are based on numerous assumptions regarding KLCCP Stapled Group’s present and future business strategies and the environment in which KLCCP Stapled Group will operate in the future, and must be read together with such assumptions. No part of these materials shall form the basis of, or be relied upon in connection with, any investment decision whatsoever. 2 4Q FY2020 Results – Investor Presentation CONTENT 1 KLCCSS - AT A GLANCE 2 OUR RESPONSE TO COVID-19 3 FY 2020 KEY HIGHLIGHTS 4 4Q FY2020 FINANCIAL PERFORMANCE 5 SUSTAINABILITY 6 OUTLOOK & KLCCSS FOCUS 4Q FY2020 Results – Investor Presentation AT A GLANCE OUR PURPOSE WE CREATE PLACES PEOPLE LOOK FORWARD TO, PROGRESSING LIFESTYLE FOR A SUSTAINABLE FUTURE WHO WE ARE Malaysia’s largest REIT and only Stapled Security in the country, comprising KLCC Property Holdings Berhad (KLCCP) and KLCC Real Estate Investment Trust (KLCC REIT). KLCC REIT focuses on active asset management and acquisition growth strategies, whilst KLCCP is the development arm of the Stapled Group. At the forefront of Malaysia’s real estate industry, our unique structure allows us to maximise the value we create for all our stakeholders. WHAT WE DO We own, manage, develop and invest in a portfolio of premium assets comprising office, retail and hotel properties in the heart of Kuala Lumpur. This is complemented by our award winning asset management services provided by KLCC Urusharta Sdn Bhd and KLCC Parking Management Sdn Bhd. This synergy of property investment and asset management strengthens the earning potential of our stable of iconic properties. PETRONAS TWIN TOWERS MENARA 3 PETRONAS MENARA EXXONMOBIL An iconic landmark, the world’s Premium office and retail Office tower currently tenanted 1 tallest twin towers 2 space seamlessly connected to 3 by major oil and gas HOW WE DO IT Suria KLCC corporation We are committed to creating a progressive SURIA KLCC MANDARIN ORIENTAL, MENARA MAXIS KOMPLEKS DAYABUMI lifestyle experience within the KLCC Precinct while enhancing the value of our property portfolio. We The premier shopping KUALA LUMPUR Home to one of the An integrated office and are focused on optimizing sustainable value 4 destination in the 5 A 5-star award winning 6 leading communications 7 retail development creation through a strategic approach that heart of Kuala Lumpur luxury hotel service provider in (located outside the capitalises on our unique Stapled Group structure Malaysia KLCC Precinct) and our competitive differentiators, well positioned for the future. CONTENT 1 KLCCSS - AT A GLANCE 2 OUR RESPONSE TO COVID-19 3 FY2020 KEY HIGHLIGHTS 4 4Q FY2020 FINANCIAL PERFORMANCE 5 SUSTAINABILITY 6 OUTLOOK & KLCCSS FOCUS 4Q FY2020 Results – Investor Presentation 11 Mac 18 Mac 4 May 9 Jun 20 Sep 14 Oct – 31 Dec WHO declares Movement Conditional Recovery 3rd wave CMCO 2.0 Together We CARE pandemic Control Order Movement Movement emerged (MCO) Control Order Control Order (CMCO) (RMCO) Mar Apr May Jun Jul Aug Sep Oct Nov Dec Our primary focus has been on the health and safety of our people, continuing to Government-mandated lockdown * Gradual easing of restrictions serve our stakeholders as a progressive solutions partner and to uphold our Key Business People Technology Statement of Purpose especially in this themes Continuity period of crisis For our Tenants & For Government, For our Employees For our Community Customers regulators and local authorities . Monetary donation to . Enabled technology - . Ensured facility readiness, . Proactively worked with University Malaya Medical Accelerated the roll-out of installed thermal imaging Government, Ministry of Centre (UMMC) to purchase PPE Microsoft 365 for a seamless cameras, social distancing Health and industry bodies to and medical equipment to treat transition to work from home labelling at all common areas implement effective Covid-19 patients . Provided mandatory COVID- of our properties containment strategy . 19 screening in Jun’20 for all . Prioritised tenant assistance Distributed food packages and initiatives and adhered employees prior to Return to – reinforcing strong tenant supplies to targeted frontliners strictly to the health & Work in Office relationship and business on duty and hotel colleagues hygiene protocols who were severely affected by sustainability . Provided information to . Reimbursed executive the pandemic employees for internet data . Implemented digital regulators pertaining to . plan during the MCO period solutions, touchless and Collaborated with Komuniti COVID-19 related financial varied communication Tukang Jahit (KTJ), a social impact and sustainability of channels (cashless, social enterprise working for the REITs media, QR code) benefit of the lower-income earners (B40) 6 * Essential activities such as healthcare, banking finance, food, water were allowed throughout MCO, CMCO and RMCO 4Q FY2020 Results – Investor Presentation MCO 2.0 here we go again.. PERMAI stimulus gives priority to the most vulnerable group 2021 Government announced the imposition of MCO 11 from 13 Jan to 26 Jan in 6 states - Penang, Jan Selangor, Malacca, Johor and Sabah, along with 3 federal territories including Kuala Lumpur, Putrajaya and Labuan 3 main Objectives & 22 initiatives CMCO : Pahang, Perak, Negeri Sembilan, Kedah, Terengganu & Kelantan 1 Combatting the COVID-19 outbreak RMCO : Perlis & Sarawak 2 Safeguard the welfare of the People 12 Malaysia's King declared State Of Emergency Jan measure to curb the spread of COVID-19. The 3 Supporting business continuity emergency is until Aug 1 or may end earlier depending on the country's COVID-19 situation Relevant applicable stimulus measures 18 Government launched MYR15bil economic Jan package (PERMAI) 19 Whole nation came under MCO except for Jan Sarawak as number of cases continued to increase 21 MCO 2.0 in 6 states & 3 federal territories has Jan been extended to 4 Feb 7 4Q FY2020 Results – Investor Presentation CONTENT 1 KLCCSS - AT A GLANCE 2 OUR RESPONSE TO COVID-19 3 FY2020 KEY HIGHLIGHTS 4 4Q FY2020 FINANCIAL PERFORMANCE 5 SUSTAINABILITY 6 OUTLOOK & KLCCSS FOCUS 4Q FY2020 Results – Investor Presentation A year of realisation, not without accomplishments Key highlights for the year A painful year as the 03 business operations of 01 02 the Group grappled Ramped up with the profound TNL extension for Completed the overall creativity with impact of the global PETRONAS Twin Towers anchor-to-specialty tailored pandemic, particularly and Menara 3 space configuration, staycation in our retail and hotel PETRONAS for a with total of 72 tenants, packages, segments. Suria KLCC further term of 15 many of which are first creative food was affected by lower years upon the expiry stand-alone stores in offerings and brought the 5-star footfall due to the of the current term of Malaysia and exclusive the leases to Suria KLCC hotel experience lockdowns and tenant to the door-steps assistance granted of its guests whilst MOKL Hotel 04 05 suffered from the Successfully transitioned mandatory closure the Suria KLCC car park to Launched the new Integrated and restricted travel fully cashless with total Building Command Center digital surveillance (IBCC) to manage our facilities in real time and leverage on the power of data to be more efficient 9 4Q FY2020 Results – Investor Presentation FY2020 Financial Highlights Weathering the pandemic together with our business partners to sustain operations Overall performance primarily impacted by the RM1,239.2 mil RM690.6 mil various lockdowns and restrictions imposed during the year which negatively affected the Revenue Profit before tax* retail and hotel segments -12.9% vs FY19 -27.4% vs FY19 Retail – 19.2% revenue decline from various assistance packages provided to affected tenants RM547.1 mil 30.00 sen Hotel – mandatory closure and Profit attributable Dividend per restricted travel led to drastic decline in to equity holders* Stapled Security volume of business -25.3% vs FY19 -21.0% vs FY19 Impairment of investment property under construction (IPUC) of RM81.4 mil for the ongoing development of Kompleks RM7.21 18.0% Dayabumi Phase 3 Net asset value per Excluding the impairment charges Profit Gearing ratio Stapled Security attributable to equity holders is at RM628.5 mil, 17.8% in FY19 a 14.2% decrease compared to FY2019 -1.5% vs FY19 10 * Excluding fair value adjustments 4Q FY2020 Results – Investor Presentation A higher payout ratio of 98%, testament to our continued commitment to shareholders 98% 97% 98% 95% 95% 95% 96% 94% 38.00 37.00 35.65 36.15 34.65 33.64 30.00 28.94 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 Dividend per stapled security (sen) Dividend payout ratio 11 4Q FY2020