Presentation by Sime Darby Property Berhad Invest Malaysia Kuala Lumpur 2019 20 March 2019 Presentation Outline
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Presentation by Sime Darby Property Berhad Invest Malaysia Kuala Lumpur 2019 20 March 2019 Presentation Outline 1 Sime Darby Property Profile 2 Financial and Operational Highlights 3 Key Developments 4 Growth Strategies & Key Focus in 2019 5 Appendices 2 1 Sime Darby Property 3 14.6% Shareholdings Foreign Source: Source: Shareholding and Share Price 56.5% Tricor 13.1% Other Other Domestic Shareholdings 15 and and others Mar’ 2019 As at 4.7% 11.1% Share Price Movement Movement Price Share 30-Nov-17 1.11 1.78 Shares (000’)Shares Number of Ordinary 6,800,839 Share Price RM1.11 Market Capitalisation Market RM7.5bn 15-Dec-17 30-Dec-17 14-Jan-18 29-Jan-18 13-Feb-18 28-Feb-18 15-Mar-18 30-Mar-18 14-Apr-18 29-Apr-18 14-May-18 29-May-18 13-Jun-18 28-Jun-18 13-Jul-18 (RM) 28-Jul-18 12-Aug-18 27-Aug-18 11-Sep-18 26-Sep-18 11-Oct-18 26-Oct-18 10-Nov-18 25-Nov-18 4 10-Dec-18 25-Dec-18 9-Jan-19 24-Jan-19 8-Feb-19 1.11 23-Feb-19 10-Mar-19 Share Price Performance Movement of Sime Darby Property against the index – Share prices broadly trending downwards within the overall property sector Index (100) 170.0 150.0 At 30 Nov 130.0 At 15 Mar 2017 2019 % Chg Sime Darby Sime Darby Property: 110.0 Property: 8 RM1.20 RM1.11 FBM KLCI: FBM KLCI: 1,717.86 pts 90.0 1,689.82 pts 2 Bursa Prop: Bursa Prop: 1,217.19 pts 915.67 pts 25 70.0 50.0 9 Jan 19Jan9 8 Feb198 13 18 13 Jul 18 28 Jul 14 Jan 18 14 Jan 18 29 Jan 19 24 Jan 11 Oct 18 11 Oct 18 26 Oct 13 18 13 Jun 18 28 Jun 14 18 14 Apr 18 29 Apr 13 Feb 13 18 Feb 28 18 Feb 23 19 Feb 15 Mar 18 15 Mar 18 30 Mar 19 10 Mar 15 15 17 Dec 30 17 Dec 10 18 Dec 25 18 Dec 11 Sep 18 11 Sep 18 26 Sep 12 12 Aug 18 27 Aug 18 30 17 30 Nov 18 10 Nov 18 25 Nov 14 May 18 14 May 18 29 May FTSE Bursa Malaysia KLCI Bursa Malaysia Property Index Sime Darby Property 5 Source: Bloomberg as at 15 March 2019 Historical Foreign Shareholding Foreign shareholding has been on a upward trend since November 2018, recording its highest level since May 2018 Sime Darby Property Foreign Shareholding since Dec' 17 (%) 15.05 14.96 14.83 14.83 14.82 14.78 14.66 14.58 14.48 14.45 14.38 14.27 14.26 14.22 14.20 14.09 6 The Largest Property Developer in Malaysia In terms of land bank size UNITED Property Development KINGDOM Active townships, integrated and THAILAND 23 niche developments KEDAH Acres of remaining developable land bank to be Helensvale, 20,411 developed over 10 -25 years Queensland GEORGETOWN, PENINSULA PENANG Estimated Remaining Gross AUSTRALIA MALAYSIA RM88.7bn Development Value (GDV) Average trading discount to 55% Realised Net Asset Value (RNAV) Property Investment SELANGOR 3,141 acres Sq. ft. of total Net Lettable Area owned in Malaysia and 2,801 acres 1.3mn NEGERI Singapore SEMBILAN Hospitality & Leisure 1,462 acres JOHOR Assets include 2 golf BANDAR UNIVERSITI PAGOH courses (36-hole & 18-hole 3,245 acres 4 respectively) and a Key Developments convention center in North-South Expressway Singapore Malaysia and a serviced residence in Vietnam 7 Sustainable Growth with Remaining Developable Period of 10 to 25 years By Remaining By Remaining Gross Developable Land Development Value (GDV) 9.1 19.5 1,462 (11%) 3,295 (24%) 339 (12%) (27%) O (3%) N G RM80.3 O 11,986 5.3 I billion (7%) N acres 828 28.1 2,800 (7%) (35%) G 5.7 (23%) 3,261 12.7 (7%) (27%) (16%) 0.1 Legend 0.3 (1%) 3,092 F 2,031 (4%) U (24%) (37%) RM8.4 T 8,425 U billion acres (Currently only R includes Kota Elmina, Lagong and Planters’ E Haven West) 3,302 (39%) 8.0 Notes: (96%) 1. Township categorisation: • Guthrie Corridor: (Ongoing) Elmina, Denai Alam, Bukit Subang 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: 8 • (Ongoing) Ara Damansara, ALYA, Putra Heights, KL East, USJ Heights, Taman Melawati, Saujana Impian, SJCC and SJ7 • (Future) Jalan Acob, Victoria Estate and others Financial and 2 Operational Highlights 9 Reported Financials for the Six Months Ended 31 December 2018 and 31 December 2017 6 Months 31 6 Months 31 In RM’m YOY % Dec’18 Dec’17 Revenue 1,269.1 1,176.2 7.9 PBIT (51.8) 599.8 (>100) PBIT (excluding one-off) 258.1 172.2 49.9 PATAMI (318.7) 559.8 (>100) PATAMI (excluding one-off) 153.0 132.2 15.7 Basic EPS (sen) (4.7) 11.9 (>100) Basic EPS (sen) 2.2 2.8 (19.6) (excluding one-off) 10 Resilient Core Earnings Despite One-off Adjustments CORE PBIT 50% YoY CORE PATAMI 16% YoY 6M Dec’18 Impairments Other Losses Share of JV/ Core Tax on Add. Tax Reported Core PBIT / Write-off / Gains Assoc. Reported PBIT PATAMI One-off One-off Provisions PATAMI 258.1 (236.6) 153.0 (309.9) (177.5) 15.8 (25.9) (47.4) (51.8) (318.7) 6M Dec’17 111.6 599.8 316.0 427.6 559.8 172.2 132.2 Core PBIT ImpairmentsOther Losses Share of JV/ Reported Core PATAMI Adj. Tax on Adj. Tax Reported / Write-off / Gains Assoc. PBIT Provisions PATAMI Impairments / Write-off Other Losses / Gains & Share of Profit Additional Tax Provisions • Other Losses & Gains: • Relates to tax audits by Inland Revenue • Impairments and write-off totalling o Includes a provision on obligation for an Board (IRB) RM236.6m : investment property of RM24.1m (6M • Additional provision of RM177.5m based o Re-pricing of aged inventories (i.e. Dec’17: Includes gains from disposal of on management’s judgement and East Residence, Alya) – RM110.8m subsidiaries and an associate of purely for the purposes of complying o Review of development RM317.8m) with the relevant accounting standards expenditures on long deferred • Currently engaging with IRB on pipeline launches (revise / replan to • Share of Results from JV/Associates: their preliminary findings align to market demand) – RM99.8m o Includes share of Battersea loss of o Long outstanding receivables – RM7.7m vs. RM112.1m profit in 6M 11 RM26.0m Dec’17 o Includes elimination of RM46.6m Segment Results Financial Period Ended 31 Dec’18 vs 31 Dec’17 6M Dec’18 Segment results >100% 6M Dec’17 without one-off 301.3 impairment 199.8 >100% >100% 19% 11.5 11.2 2.7 (5.6) (11.9) (14.6) (36.8) Property Development Property Investment Leisure & Hospitality Concession Arrangement ▪ Impairments and write-off totaling RM236.6m, which include impairment of aged inventories and receivables of RM110.8m and RM26.0m respectively and write off of development expenditures of RM99.8m Property ▪ Share of Battersea loss of RM7.7m (Dec’17: profit of RM112.1m) (2QFP18: RM2.0m loss vs. RM25.3m Development profit in 2QFY18) ▪ Profit from land sale of RM76.1m (net of elimination) (Dec’17: RM84.3m) ▪ Higher contribution by Bandar Bukit Raja 2 & 3, Denai Alam, Cantara Residences and Melawati ▪ One-off income recognition on commencement of tenancy of Wisma Zuellig of RM6.9m in 1QFP18 ▪ Gain on disposal of investment properties in the U.K. totaling RM5.6m (Dec’17: RM1.3m) (2QFP18: Property RM3.0m vs. RM1.0m in 2QFY18) Investment ▪ Share of Melawati Mall loss of RM1.1m (Dec’17: loss of RM7.9m) (2QFP18: RM0.07m profit vs RM2.4m loss in 2QFY18) ▪ Pre-commencement cost incurred for KL East Mall of RM6.0m Leisure & Hospitality ▪ Include gain on disposal of Darby Park Serviced Residence, Margaret River of RM3.2m Concession 12 Arrangement ▪ Contribution from supply of teaching equipment of RM7.1m (Dec’17: nil) Cash and Debt Position as at 31 Dec’18 CASH & CASH EQUIVALENTS (RM’m) • Higher net cash used in 800.0 9% operating activities due to higher 710.5 working capital mainly in: 700.0 649.1 o Bandar Bukit Raja (0.7) 600.0 (88.8) o Senada, Alya 500.0 285.3 o Melawati & KL East (incl. The Ridge) 400.0 • Higher net cash used in (257.2) 300.0 investing mainly due to higher 200.0 CAPEX and subscription of shares in Battersea Project Company Holding 100.0 (RM239m) 0.0 30-Sep-18 Operating Investing Financing Foreign 31-Dec-18 • Net cash used in financing Activities Activities Activities Exchange activities include finance costs paid (RM34m) and repayments of long- GROUP BORROWINGS term borrowings (RM6m) (RM’m) Total Borrowings: 3,273.0 2,745.0 Gross D/E Ratio 808.6 1,347.8 (29%) Long Term 34.6% (41%) (30 Sep’:27.8%) 1,925.2 Short Term (59%) 1,936.4 (71%) 31-Dec-18 30-Sep-18 13 Current Inventories as at 31 Dec’ 2018 Carrying Value Units (RM’m) 5% Launches 1 Jul - 31 Dec’18 RM2,221.6 Units RM2,119.3 572 units Taman Melawati (14%) 284 (MCC & Serini) Alya KL 100 Bukit Jelutong 94 Total: Completed Planters' Haven 64 16% 871.3 1,033.9 4,016 units Projects Saujana Impian 57 (Sep’18: 4,469) 883 units Chemara East 48 (Jun’18: 4,962) (22%) KL East (The Veo) 45 The Glades 27 Launches prior Elmina West 15 1 Jul’18 Others 149 2,561 units (64%) Total 883 1,248.0 5% 1,187.7 ❑ Completed units: 6% QoQ (vs.