Presentation by Sime Darby Property Berhad Investor Engagement in Kuala Lumpur September 2019 2 CONTENTS 1 Business Overview 2 Financial Overview 3 Operational Highlights 4 Strategy Moving Forward 01 02 03 04 3 The Largest Property Developer in Malaysia Business Financial Operational Strategy Moving Overview Overview Highlights Forward 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, 20,067 developed over 25 -30 years Queensland PENINSULA Estimated Remaining Gross AUSTRALIA MALAYSIA RM87.4bn Development Value (GDV) Average trading discount to 59% Realised Net Asset Value (RNAV) Property Investment SELANGOR 3,141 acres Sq. ft. of total Net Lettable Area owned / managed in 2,800 acres 1.3mn NEGERI Malaysia and Singapore SEMBILAN Hospitality & Leisure 1,462 acres JOHOR Assets include 2 golf BANDAR UNIVERSITI PAGOH courses (36-hole & 18-hole 3,226 acres 4 respectively) and a Key Developments convention center in North-South Expressway Singapore Malaysia and a serviced residence in Vietnam Data as at 31 August 2019 except for remaining landbank and remaining GDV 4 Our History 01 02 03 04 Business Financial Operational Strategy Moving Overview Overview Highlights Forward • Negara Properties, the subsidiary of Golden Hope Plantations launched its 1972 first township – Taman Melawati (880 acres) Taman Melawati • Sime UEP was established through the acquisition of a large stake in United Estates Projects Bhd, the developer of Subang Jaya township 1984 (2,241 acres) • Guthrie Property Development Holding Bhd, a subsidiary of Kumpulan Guthrie Berhad launched its first township – Bukit Jelutong (2,205 1995 acres) • Launched and transformed Nilai Impian 1 (1,263 acres) into a comprehensive township at the Pajam Nilai interchange along the North- Subang Jaya 1997 South Expressway • Completion of the Guthrie Corridor Expressway (25 km) which 2005 connect Shah Alam to Rawang • Sime Darby Property Division was established following the historical merger of Kumpulan Sime Darby Bhd, Kumpulan Guthrie Bhd and Golden 2007 Hope Plantations Bhd • Sime Darby Property, SP Setia and EPF acquired the iconic Battersea Power Station for GBP400mn (42 acres) Bukit Jelutong 2012 • Signed concession agreements with government of Malaysia and four higher learning institutions to develop Pagoh Education Hub • City of Elmina was launched (5,000 acres) 2013 • Started the developments of Denai Alam, Bukit Subang and Elmina East • Launched Bandar Bukit Raja 2 (~1,400 acres) and Serenia City 2016 (2,370 acres) City of Elmina • Listing of Sime Darby Property on to Bursa Securities Malaysia on 30 2017 November 2017 • Launch of MVV2.0 by Menteri Besar Negeri Sembilan on 13 December 2018 2018 • Opening up of new development, Kota Elmina (1,540 acres) 2019 Sustainable Growth with Remaining 01 02 03 04 5 Business Financial Operational Strategy Moving Developable Period of 25 to 30 years Overview Overview Highlights Forward By Remaining By Remaining Gross Developable Land Development Value (GDV) 1,462 3,296 8.9 19.6 (12%) (11%) (25%) 321 (28%) O (3%) N G O 2,793 11,942 27.8 RM79.3 5.0 (23%) (35%) I 828 billion (6%) N acres (7%) G 5.5 12.4 (7%) 3,242 (16%) (27%) Legend 1,731 0.02 F (24%) 3,092 0.3 (0.3%) (37%) (4%) U T 8,125 RM8.1 U billion acres (Currently only includes R Kota Elmina, Lagong E and Planters’ Haven) 3,302 7.8 (39%) (96%) Notes: 1. Township categorisation: • Guthrie Corridor: (Ongoing) Elmina West, Elmina East, 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: • (Ongoing) Ara Damansara, KLGCC Resort, Putra Heights, KL East, USJ Heights, Taman Melawati, Saujana Impian, SJCC and SJ7 • (Future) Jalan Acob, Victoria Estate and others With Option to Increase Land Bank 01 02 03 04 6 Business Financial Operational Strategy Moving Totaling ~20,000 acres Overview Overview Highlights Forward 1. Land Option 2. MVV Option Agreements 20,602 Agreements with Sime Darby Plantation a c r e s with Sime Darby Berhad 11,806 acres 8,796 acres PERLIS Kumpulan Sime Darby and SD Plantation entered into 8 KEDAH THAILAND Kota Bharu Sime Darby Property entered call option agreements with SD Property pursuant to into several call option which SD Property has options agreements for lands within the MVV 2.0 to purchase these lands at PENANG KELANTAN future market value development region PERAK TERENGGANU Option Validity : PENINSULA 5 years effective Nov. MALAYSIA Option Validity : 5 2017, extendable by 3 years years effective Nov. 2017, PAHANG extendable by 3 years SELANGOR Sungai Kapar Estate : 993 acres KUALA LUMPUR West Estate, Carey Island : 1,350 acres Port Klang Putrajaya Bukit Cheraka Estate: 2,540 acres Bukit Kerayong Estate: 1,077 acres NEGERI SEMBILAN Jalan Acob Estate: 2,177 acres Ainsdale Estate : 268 acres Sepang Estate : 2,000 acres NEGERIKulai Estate - A : 915 acres Lothian Estate : 485 acres SEMBILAN JOHOR Labu and New Labu Estates : 8,796 acres Legend North-South Expressway Proposed ECRL Proposed ECRL (Spur Line) SINGAPORE Malaysia: Strategic Location and 01 02 03 04 7 Excellent Business Ecosystem Business Financial Operational Strategy Moving Overview Overview Highlights Forward WELL DEVELOPED INFRASTRUCTURE • Telecommunications network served by digital and fibre optic technology • Five international airports (all with air-cargo facilities) • Well-maintained highways and railways • Seven international seaports STRATEGIC LOCATION • Strategic location within ASEAN and is safe from natural disasters • Cost-competitive location for investors who intend to set up offshore operations for the manufacture of advanced technological products STRONG INDUSTRIAL ACTIVITIY • Over 500 industrial estates and Free Zones developed throughout the country, catering to the requirements of export- oriented industries YOUNG DEMOGRAPHICS WITH HIGH % OF URBANISED POPULATIONS • Accelerating population of 32.4 million at present • 67% of the population is aged between 15 – 29 NATURAL USD 9.4 ADVANCED TELECOMMUNICATION RESOURCES 8.1% CONNECTIVITY Fastest private BILLION • Telecommunication connectivity covers up to 95% of Malaysia’s Crude oil, natural Total foreign direct populated areas. This has ranked Malaysia as 2nd highest in consumption ASEAN. gas, tin, timber, investment (FDI) palm oil & rubber growth rate recorded since in 2018 AVAILABILITY OF INCENTIVES AND POLICIES 2012 • 97 different incentives and policies to support businesses operating in Malaysia for a dynamic business environment RM42,627 MATURE AND VIBRANT BUSINESS ECOSYSTEM 4.7% (USD10,564) 1.0% • Malaysia is the 25th most competitive nation in the world (World 2018 GDP growth 2018 per capita 2018 inflation Economic Forum, 2018) (CPI) rate • Well-developed financial and banking sector, including the income Labuan International Business and Financial Centre • Large local business community with international business links • Large foreign business community in all business sectors “The Malaysian economy grew 4.5 per cent in the • Extensive industry engagement programmes to ensure first quarter of the year, driven mainly by the private availability of an industry- relevant workforce sector activity and firm private consumption growth.” POPULATION Malaysian Central Bank • 32.4 million 01 02 03 04 8 SDPB: Developing Economic Corridors Business Financial Operational Strategy Moving Overview Overview Highlights Forward New Considerations For Locations In the past, facilities were built according to zoning Accessibility regulations. But with the evolution of logistics, the following are now key considerations: • Accessibility/Connectivity: – Rise in demand for facilities in the vicinity of ports Support and airports Ecosystem – Demand for locations surrounding urban areas to facilitate staging points and “last mile” delivery. • Support Ecosystem: – Increase reliance on the presence of experienced Economic business, technical and logistics support ecosystem Corridors to support location decision. Human • Human Capital: Capital – Availability of industry-relevant human capital will play a major role in making locations attractive. • Shipping Considerations: – Low shipping fees, and even free shipping, is a common trend in e-commerce today. Facilities far Shipping from customers imply additional shipping costs and Consideration can discourage clients. – Bulk orders now go hand in hand with customised/personalised orders. Scalability • Scalability: – The site must be able to physically accommodate expansion/ growth. 01 02 03 04 9 SDPB: Developing Economic Corridors Business Financial Operational Strategy Moving To Ipoh Overview Overview Highlights Forward LAGONG To Rawang To Kuala Selangor KOTA ELMINA Klang Valley • 84% of total land bank located in Klang Valley and Negeri Sembilan. • All of SDPB’s developments are ELMINA WEST ELMINA EAST freehold in nature, except for developments in ALYA Kuala Lumpur and Bandar Universiti ALYA KL Pagoh. To KLIA / Seremban 1 • SDPB develops Economic Corridors, embedding robust economic activities and superior accessibility to major road systems and railways, creating numerous jobs and business opportunities. 2 • Well positioned along the North-South Expressway 3 (NSE), Guthrie Corridor Expressway (GCE) and 4 most major arteries within Klang Valley