1 2017/18 Review Actual picture of Elmina Valley • Delivered 853 units of Elmina Valley 1-3 in FY2018 2 A Year of Transformation With Several Key Milestones Debut on the Main Selected as an Board of Bursa index constituent The first real 17 Malaysia for FTSE4Good estate company 20 Securities Berhad Bursa Malaysia in Malaysia to Index and Strengthened be recognised Successful FTSE4Good Management as an index launches of Lot ASEAN 5 Index component of 15 - SJCC, Ferrea - team with 13 key the Dow Jones Denai Alam and Rolled out leadership Sustainability Elmina Green - Transformation position Emerging Elmina West 1.5 initiatives JUNE 2018 Market Index NOVEMBER SEPTEMBER 2018 MARCH MARCH 2018 Opening of the Won 13 High Strategic Elmina Interchange QLASSIC partnership with at Guthrie Corridor Achievement Mitsui & Co. Expressway Awards for and Mitsubishi exemplary quality Estate to Announced of its developments develop and lease proposed at the built-to-suit reorganization of Construction industrial facilities the Battersea Industry on a 39-acre site Power Station’s Development at Bandar Bukit Phase 2 Board Malaysia’s Raja Commercial Assets MAY 2018 QLASSIC Award to Permodalan AUGUST AUGUST 2018 2018 Nasional Berhad (PNB) and the Employees Provident JANUARY 2018 3 Fund (EPF) Resilient Financial Deliverables in the First Year of Listing Revenue PBIT PATAMI RM2,353.1 RM682.5 RM640.0 million million million Return on Dividend Avg. SF Payout Ratio 8.0% 53.1% Shareholders’ Gross D/E Ratio Total Dividend Net assets Fund (SF) Payout Dividend per share RM9,734.6 25.5% RM340.0 Yield RM1.40 4.2% million million Net Sales Value Unbilled Sales RM2,250.0m RM2,034.0m Surpassing target of RM2.0bn Met target of RM2.0bn 4 Improvement in Core Earnings Revenue PBIT (RM million) (RM million) 2,610.9 2,353.1 823.7 682.5 88.9 483.2 599.2 +6.4 405.5 2,264.2 % 2,127.7 +23.4 277.0 % 224.5 2018 2017 2018 2017 Core Non-core (Asset Monetisation) Lower non-core revenue YoY attributable to: • Strategic land sale in New Lunderston Estate and Glengowrie Estate of RM88m • Sale of equity interest in MLDC and Seriemas Development Sdn Bhd to PNB Development Sdn Bhd of RM318m The Group’s core revenue and core PBIT higher YoY by 6.4% and 23.4% respectively, excluding the contributions from asset monetisation 5 Property Development remained the main contributor (~90%) to the Group’s total revenue and PBIT REVENUE PBIT RM2,353.1 million RM682.5 million 35.6 (2%) 2.4 (1%) 101.1 630.4 2,090.8 13.2 (4%) (92%) (89%) (2%) 125.6 36.5 (5%) (5%) Property Property Leisure and Concession Development Investment Hospitality Arrangement Higher PBIT in Property Development driven by higher sales and development activities from flagship projects Significant gains in Property Investment and Leisure and Hospitality from the disposal of stakes in MLDC and Seriemas PBIT of Concession Arrangement jumped almost sixfold from RM6.1 million to RM36.5 million in FY2018 6 Group’s Inventories as at 30 June 2018 RM6,779.4 Completed: +5% million RM5,806.7 ~57% are from the Alya and Glades developments 837.0 million PDC – Launched: +16% 17% 799.3 1,614.0 Increased activities at Elmina East, Elmina West and Bandar Bukit Raja 1,392.5 PDC – Not Yet Launched: +3% 2,462.7 Costs incurred on infrastructure at new townships such as Serenia City 2,385.4 and Bandar Universiti Pagoh Land Held for PD: +52% 1,865.8 1,227.2 Included RM689.6 million from the acquisition of MVV land measuring 1,880 acres 2018 2017 Completed Inventories PDC – Not Yet Launched Property development Land Held for Property 7 costs (PDC) - Launched Development (PD) Strong Sales and Unbilled Sales Performances UNITS SOLD Net Sales Unbilled UNITS COMPLETED 3,045: +72% YoY Value Sales 2,305: +88% YoY (RM’m) (RM’m) Greater Klang Valley 2,250 Greater Klang Valley 47 16% 151 2,034 10% 1,933 12% 10% 22% 15% 36% 31 22% 19% 17% 88 110 16% 441 20% 23% 202 1,670 403 85 Putra Heights Serenia City 285 134 Putra Heights Serenia City Ara D'sara SJCC Ara D'sara ALYA Others 256 SJCC Others 758 Along Guthrie Corridor Along Guthrie Corridor 919 6% 977 678 4% 27% 34% 31% 31% 33% 853 34% 571 Elmina East 517 381 Elmina West Elmina East Denai Alam & Bukit Subang Elmina West Bukit Jelutong Denai Alam & Bukit Subang Bukit Jelutong 2018 2017 2018 2017 Along GCE Greater Klang Vally Klang N.Sembilan Johor 8 Healthy Launches in Various Product Lines 4,098 units launched worth RM2,709m High-Rise: 532 units +139% YoY (1,717 units in FY2017) Lot 15, SJCC Landed: 1,775 units Unit: 361 Ferrea, Denai Alam GDV:RM277m Unit: 228 GDV:RM197m Senada B, Alya Semanea, Denai Alam Unit: 170 GDV:RM167m Unit: 162 GDV:RM192m Commercial: 91 units Elmina Green, Elmina Laman Nadina, Unit: 398 Elmina GDV:RM304m Unit: 14 GDV:RM28m Serenia Amani, Serenia Saujana Unit: 302 Promenade, Pagoh GDV:RM174m Affordable: 1,700 units Unit: 35 Harmoni 1, Putra Heights GDV:RM33m Azira, Bandar Bukit Raja Unit: 1,700 Unit: 166 GDV:RM389m GDV:RM142m 9 Moving Forward Battersea Power Station, London • Handed over 855 units of Phase 1 over 2 years in FY2017 & FY2018 10 Malaysia’s Property Market Remains Weak and Challenging Re-introduction of Sales National Housing Policy and Service Tax (SST) • Clear scope and • Uncertainty on BUSINESS parameters of housing prices CHALLENGES proposed policy • Buyers adopt “wait • Streamline effort to and see” approach deliver affordable • Expect moderation houses in sales Oversupply of high-rise medium range properties Enhancement in People • Industry is producing Management faster than the absorption • Upskilling and sourcing rate of capabilities in the • High number of unsold Slower economic Integrated Team condominium/apartment growth in Malaysia • Reduce operating units in Selangor priced • Revised 2018 GDP expenditure below RM1 million growth forecast of (~8,500 units) and Kuala 4.9% from 5.4% Lumpur (~20,400 units) • Expect an austere as at June’18 may affect 2019 Budget the sales volume of ongoing / new launches 11 Sustainable Pipeline of Launches in 2019 Breakdown by GDV Key Launches Elmina West Commercial (2-storey house) Integrated 4% No. of Units : 780 Industrial 34% Est. GDV : RM581.4mn 17% Bukit Raja (2-storey house) Landed No. of Units: 725 45% Est. GDV : RM428.5mn Landed Serenia City (2-storey house) No. of Units : 628 Est. GDV : RM347.4mn 4,000 - 4,500 units to be Putra Heights launched, worth GDV of (Serviced apartment) No. of Units : 1,120 RM4 billion Est. GDV : RM340.2mn SJCC (Serviced apartment) Elmina 19% No. of Units : 234 Integrated Est. GDV : RM170.6mn Nilai 16% Nilai Impian (2 & 3-storey factory) Bukit Raja 13% No. of Units : 149 Est. GDV : RM543.8mn 12 Serenia City 8% Industrial We are committed to grow via a focused transformation plan Our SHIFT20 Transformation Plan comprises 20 initiatives which we have identified based on 5 Strategic Priorities to transform the Group over the next five years. Maximising Stakeholder Value Enhancing and Developing Human Capital and Capabilities Driving Innovation and Operational Excellence SHIFT20 Strengthening 5 Strategic Fundamentals and Business Focus Priorities Organisational Transformation towards Sustainable Growth By executing 20 strategic initiatives to achieve our Goals 13 Property Development: Maintain the leadership position as a reputable township developer in Malaysia Key Strategic Identified Key Targets Priorities Initiatives Prioritise on Reducing Strategic execution plan to Completed & reduce inventories with carrying value of RM2.5bn, Launched Ongoing mainly from Alya, Planters’ Inventories Haven, The Glades, KL East & Ara Damansara RM2.2 billion Focus on Launches in Launches below RM800,000 in Unbilled Sales Low to Mid-range segment, including Rumah Segment to Meet Selangorku units in Elmina Demand (below RM300,000) Establish New 400 acres of industrial land Segment for identified for sale or development with an estimated Industrial & Logistics GDV of ~RM5.1bn to be realised 5% Increase Developments over the next 5 years from FY2018 Customer Satisfaction Index Embark on First Phase Focus on Parcel A measuring of MVV Development 2,838 acres and have constant engagement with State and Federal Government 14 Property Investment and Asset Monetisation: Grow recurring income and maintain a steady portfolio Key Strategic Identified Key Targets Priorities Initiatives Embark on Built-to-Suit & Lease model in Bandar Bukit Generate Investment Raja, Elmina and Serenia City, Income from with focus on 39 acres in Bandar Industrial Segment Bukit Raja for 10 industrial plots with target commencement of Achieve 10% construction in early 2019 PBIT contribution by 2023 Target disposal of ~1,700 Monetise Non-Strategic acres of non-strategic land bank Land bank located in Northern Peninsula and East Malaysia Grow a steady Target completion of investment asset Rationalise Low- divestment of hospitality assets portfolio and yielding, Non-core in Singapore, Australia and unlock value Assets Vietnam from divestment of non-core assets by 2019 15 Concession Arrangement: Focus on growth and expansion of Pagoh Education Hub Key Strategic Identified Key Targets Priorities Initiatives Stable and Management of Pagoh Education Hub as a Consistent Pagoh Education source of recurring income via availability charges and facilities Cash Flows for the next Hub management 19 years Explore Balance surrounding land area of Opportunities for ~400 acres which is earmarked Expansion of Pagoh for future expansion of Catalyst Education Hub education facilities to Property Development Profitability in Bandar Universiti Pagoh 16 THANK YOU 17.