SIME DARBY PROPERTY BERHAD Invest Malaysia 2018 23 & 24 January 2018 1 2 Presentation Outline 1 Overview 2 Strategies 3 Transformation Focus 4 Financial Performance 5 Market Outlook 6 Appendices 3 1 Overview 4 Our History • Negara Properties, the subsidiary of Golden Hope Plantations launched 1972 its 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 1984 township (2,241 acres) • Guthrie Property Development Holding Bhd, a subsidiary of Kumpulan Guthrie Berhad launched its first township – Bukit Jelutong (2,205 1995 acres) Subang Jaya • Launched and transformed Nilai Impian 1 (1,263 acres) into a comprehensive township at the Pajam Nilai interchange along the 1997 North-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 Bukit Jelutong merger of Kumpulan Sime Darby Bhd, Kumpulan Guthrie Bhd and 2007 Golden Hope Plantations Bhd • Sime Darby Property, SP Setia and EPF acquired the iconic Battersea Power Station for GBP400mn (42 acres) • Signed concession agreements with government of Malaysia and four 2012 higher learning institutions to develop Pagoh Education Hub • City of Elmina was launched (5,000 acres) City of Elmina • Started the developments of Denai Alam, Bukit Subang and 2013 Elmina East • Launched Bandar Bukit Raja 2 (~1,400 acres) and Serenia 2016 City (2,370 acres) 5 An Independent Listed Entity On 30 November 2017, Sime Darby Property Berhad was listed as an independent entity on Bursa Malaysia The Largest Property Developer (20,763 acres) in Malaysia, in terms of land bank size with 1,599 employees Share Price Performance Increase in Market Capitalisation -20% +33% +33% RM1.60 RM1.50 RM10.8bn RM1.20 RM8.2bn L I S T I N G LISTED SHARE SHARE PRICE LISTED MARKET CAP MARKET CAP TODAY REFERENCE PRICE PRICE TODAY (30 NOV'17) (22 JAN'18) (30 NOV'17) (22 JAN'18) 6 Shareholding Structure as at 22 Jan’18 RM1.60 Share Price 54.7% Share Price Movement (RM) 1.78 1.64 1.60 1.52 As at 22 Jan’18 1.45 1.28 1.20 1.11 Foreign Shareholdings 14.7% 10.7% RM10.8bn Market Capitalisation 4.8% Domestic Shareholdings 15.1% 6,800,839 Number of Ordinary Shares (000’) and the public Source: Tricor 7 Our Footprint 20,763 acres of the Georgetown remaining developable land bank which includes: Ara Damansara Pulau Tikus SJCC SJ7 12,026 acres within our ALYA Taman Melawati existing 23 active townships, KL East Lagong integrated & niche urban Kota Elmina MALAYSIA developments City of Elmina Denai Alam Bukit Jelutong 3,196 acres in the Malaysia Bandar Bukit Raja Kuala Vision Valley (MVV) region 1, 2 & 3 Lumpur Saujana Impian Putra Heights Negeri Total estimated remaining Serenia City Sembilan Gross Development Value Melaka Planters’ Haven (GDV) of RM100.4 bn Hamilton Labuan Bileh Nilai Impian 1 & 2 Additional acres Bandar Ainsdale 20,599 Nilai Utama of land via MVV & Land Johor Bandar Universiti Bahru Options Agreements (5+3 Pagoh years) SINGAPORE Flagship North-South Keretapi Tanah Melayu HSR line HSR Hubs Development Expressway 8 An Integrated Property Developer Property Development . Domestic: Klang Valley, Negeri Sembilan and Johor . International: London, United Kingdom, development of Battersea Power Station Bandar Universiti Pagoh, Johor Property Investment . Manages ~1.4mn sq. ft. of net commercial space in Malaysia, S’pore and United Kingdom . Retail Mall: Melawati Mall Melawati Mall, Selangor Hospitality & Leisure . Domestic: Sime Darby Convention Centre, TPC KL, Impian Golf & Country Club . International: Darby Park Executive Suites, S’pore & Darby Park Serviced Residences, Vietnam TPC Kuala Lumpur (Formerly Kuala Lumpur Golf & Country Club) 9 Sustainability Strategic Framework Ascribed to the United Nations Sustainable Development Goals (SDGs) The Framework aligns Sime Darby Property’s purpose and values with the Organisational Sustainability Leadership Index (SLI) Key Performance Indicators Awarded by Property Guru Asia Property Awards, 2017 Special Recognition in Sustainable Development and Social Recognition in CSR 10 A Model Wellness & Liveability Township City of Elmina, Townships For The Future 300 acres of Central Park 90km cycling and jogging track Total 3,480 acres of green spaces Existing 2,700 acres of forest reserve The 36-acres Elmina Community Park was named the “Elmina TN50 Community Park” in line of Transformasi Nasional 2050 (TN50) An Award-Winning Township Institute of Landscape Architects Malaysia 2017 Star Property 2017 Winner: Landscape Analysis & Winner : The Five Elements Award Study Awards (Best Comprehensive Township) (Master planning) 11 2 Strategies 12 Key Investment Highlights #1 20,763 acres with remaining estimated GDV of RM100.4bn Largest developable Excluding additional 20,599 acres of lands under Options Agreements with Sime Darby Plantation and Sime Darby Berhad land bank in Malaysia ~85% of the total land bank located in Greater Klang Valley All freehold developments except for developments in Bandar Universiti Pagoh and ALYA A competitive advantage to monetize non-strategic land Sustainable earnings contribution for the next 15 – 20 years Chemara Hills, Seremban City of Elmina, Selangor Bandar Bukit Raja, Klang 13 Key Investment Highlights #2 Located in growth areas with robust economic activities and high accessibility to major road systems Strategic and railways locations with Well positioned along the Guthrie Corridor Expressway full spectrum (GCE) and West Coast Expressway of products Strategically located in Negeri Sembilan and Johor to benefit from Malaysia Vision Valley and High Speed Rail projects SELANGOR JOHOR Forest To Penchala Link Reserve (15 minutes) 14 Key Investment Highlights #3 Good track record of over 40 years in property development with success in transforming former estate lands into Recognised major townships brand with established Received awards over the years for excellence track record and distinctions Putra Brand Awards StarProperty.my Noble Excellence BCI Asia Awards 2017 2017 Awards 2017 Awards 2017 Top 10 Developers Gold Award in Top Ranked Gold, National Best Awards in Malaysia Property Category Developers of the Integrated (7 consecutive years Year Development of since 2010) the Year (Oasis Square, Ara Damansara) 15 Strategic and Growth Plan No. 1 Property Developer in Malaysia VISION Active Land Pursue Increase Focus on Optimise & Bank Strategic Product Township & Grow Management Partnerships Diversification Integrated Recurring GROWTH GROWTH STRATEGIES Development Income • Prioritise the • Proactively • Develop a • Leverage on the • Grow recurring development secure variety of sizeable land income base located along GCE partnerships via industrial bank located in • Retain strategic • Assess best and JV or developments strategic growth assets highest use for opportunistic M&A such as Built- areas • Dispose non- each land parcel & To-Suit (BTS) • Increase FY20 • Capture a larger performing - dispose non- share of the products exposure in assets strategic lands property • Expand the integrated & • Establish a core development of urban FY18 • Opportunistic development and experienced land market in integrated TOD developments team acquisitions Malaysia and TAD • Enhance current KEY PRIORITIES IN KEY PRIORITIES projects GDV of RM100bn Secure entry into Secure PATAMI FTSE Bursa Market FY2022 Annual Growth TARGET TARGET BY Malaysia KLCI Leadership 16 Three-Pronged Approach to Active Land Bank Management STRATEGIC DEVELOP PARTNERSHIPS MONETISATION Prioritise and focus on Earmark potential developers to Strategic monetisation of parcels of land growth of high co-develop ongoing and outside key development focus in order to: performing townships greenfield townships as a mean . Enhance the land value and expedite the to: development via other developers . Speedy realisation of land value Drive cost reduction . Accelerate development of our initiatives to enhance sizeable land bank profitability . Leverage on partners’ Target to be disposed within 2 years: expertise and resources • 1,614 acres – Kedah 37 acres – Sabah A r e a s : Ongoing Projects: Past Transactions: . Townships: Elmina 2015: West, Elmina East, . Elmina land (135 acres) to E&O Serenia City, Bandar 2016: Bukit Raja & Bandar . Serenia City land (346 acres) to Sunsuria Universiti Pagoh . Semenyih land (238 acres) 2017: . Integrated: Subang . Semenyih land (803 acres) to I&P Jaya City Centre . Bandar Bukit Raja Industrial (SJCC) and KL East 2018: Park, an establishment of the . Disposal of Malaysia Land Development joint venture currently in Company & 40% stake in Seriemas progress Development 17 Leverage on the expertise of key partners Malaysia Vision Valley Sixth Economic Corridor in Malaysia Melawati Mall The first major shopping mall in Taman Melawati Radia Bukit Jelutong Mixed development at the heart of Bukit Jelutong PJ Midtown Integrated project at the epicenter of Petaling Jaya Battersea Power Station (BPS) Project A major regeneration project in Nine Elms 18 Increase Product Diversification Transit Oriented and Premium, Industrial Township & Integrated Transit Adjacent Branded Lifestyle Park Development Developments • Proposed Sime • Total gross acreage Darby Business of 5,000 acres • A 693-acres of area Park (823 acres) to • Comprises of 9 comprising Bukit evolving from a be an integrated development parcels Subang, Denai landed