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SIME DARBY PROPERTY BERHADCredit Suisse 9th Annual ASEAN Conference
11 & 12 January 2018
Cautionary Note
2
This presentation does not constitute and is not an offer to sell or the solicitation of an offer to buy securities of any company
referred to in this presentation in the United States or elsewhere. The companies referred to herein have not registered and do
not intend to register any securities under the US Securities Act of 1933, as amended (the “Securities Act”), and any securities
may not be offered or sold in the United States absent registration under the Securities Act or an exemption from registration
under the Securities Act. By attending the presentation you will be deemed to represent, warrant and agree that to the extent
that you purchase any securities in any of the companies referred to in the presentation, you either (i) are a "qualified
institutional buyer" within the meaning of Rule 144A under the Securities Act, or (ii) you will do so in an "offshore transaction"
within the meaning of Regulation S under the Securities Act.
This presentation may contain forward-looking statements by Sime Darby Berhad that reflect management’s current
expectations, beliefs, intentions or strategies regarding the future and assumptions in light of currently available information.
These statements are based on various assumptions and made subject to a number of risks, uncertainties and contingencies.
Actual results, performance or achievements may differ materially and significantly from those discussed in the forward-
looking statements. Such statements are not and should not be construed as a representation, warranty or undertaking as to
the future performance or achievements of Sime Darby Berhad and Sime Darby Berhad assumes no obligation or responsibility
to update any such statements.
No representation or warranty (either express or implied) is given by or on behalf of Sime Darby Berhad or its related
corporations (including without limitation, their respective shareholders, directors, officers, employees, agents, partners,
associates and advisers) (collectively, the "Parties") as to the quality, accuracy, reliability or completeness of the information
contained in this presentation (collectively, the "Information"), or that reasonable care has been taken in compiling or
preparing the Information.
None of the Parties shall be liable or responsible for any budget, forecast or forward-looking statements or other projections of
any nature or any opinion which may have been expressed or otherwise contained or referred to in the Information.
The Information is and shall remain the exclusive property of Sime Darby Berhad and nothing herein shall give, or shall be
construed as giving, to any recipient(s) or party any right, title, ownership, interest, license or any other right whatsoever in
or to the Information herein. The recipient(s) acknowledges and agrees that this presentation and the Information are
confidential and shall be held in complete confidence by the recipient(s).
This presentation is for the purposes of information only and no part of this presentation is intended to be or shall be
construed as an offer, recommendation or invitation to subscribe for or purchase, or otherwise making available, any securities
in Sime Darby Berhad.
Presentation Outline
1. Overview
2. Strategies
3. Transformation Focus
4. Financial Performance
5. Appendices
3
4
1. Overview
2. Strategies
3. Transformation Focus
4. Financial Performance
5. Appendices
Our History – Who We Are
5
30 Nov 2017
Sime Darby
Property Berhad, an independent listed entity
on Bursa Malaysia
• Negara Properties, the subsidiary of Golden Hope Plantations launched its first township – Taman Melawati(880 acres)
1972
1984
• Sime UEP was established through the acquisition of a large stake in United Estates Projects Bhd, the developer of SubangJaya township (2,241 acres)
• Guthrie Property Development Holding Bhd, a subsidiary of Kumpulan Guthrie Berhad launched its first township –Bukit Jelutong(2,205 acres)
1995
2005
• Completion of the Guthrie Corridor Expressway (25 km) which 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 Hope Plantations Bhd
2007
2012
• Sime Darby Property, SP Setiaand EPF acquired the iconic Battersea Power Station for GBP400mn (42 acres)
• Concession agreements with the government of Malaysia and four higher learning institutions were signed to develop Pagoh Education Hub
• City of Elmina was launched (5,000 acres)
2013
Our Footprint
20,763 acres of the remaining
developable land bank which includes:
12,026 acres of the remaining
developable land bank located
within our existing 23 active
townships, integrated and niche developments
3,196 acres of land located
within the Malaysia Vision Valley (MVV) region
Total estimated GDV of
RM100.4 bn for the remaining
developable land bank
Additional 20,599 acres of land
via MVV and Land Options Agreements (5+3 years)
1,599 employees
6
Lagong Kota Elmina
Pulau Tikus
Georgetown
Melaka
Johor Bahru
Kuala Lumpur
NegeriSembilan
MALAYSIA
SINGAPORE
Hamilton Labuan Bileh
Ara Damansara SJCC SJ7
Serenia City
ALYA Taman Melawati KL East
Nilai Impian 1 & 2 Bandar Ainsdale Nilai Utama
Bandar Universiti Pagoh
TownshipsIntegrated development
Landbank HSR Hubs
Saujana Impian
City of Elmina Denai Alam Bukit Jelutong
Putra Heights
Bandar Bukit Raja 1, 2 & 3
Planters’ Haven
106%114% 113%
-1%
4%
-9%
-5%
-18% -4%
FY2015 FY2016 FY2017
An Integrated Property Developer
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What We Do Property Development
Property Investment
Hospitality & Leisure
92%90%
93%
3%4%
2%
5% 6% 5%
FY2015 FY2016 FY2017
Domestic: Klang Valley, Negeri Sembilan and Johor
International: London, United Kingdom, development of Battersea Power Station
Manages ~2mn sq. ft. of net commercial space in Malaysia, S’pore and United Kingdom
Retail Mall: Melawati Mall
Domestic: Sime Darby Convention Centre, TPC KL, Impian Golf & Country Club
International: Darby Park Executive Suites, S’pore & Darby Park Serviced Residences, Vietnam
Breakdown of Revenue Breakdown of Operating Profit
RM3.25bn RM2.60bn RM2.56bn RM642mn RM455mn RM353mn
Shareholding Structure as at 10 Jan’18
8Source: Tricor
RM1.64 Share Price
RM11.09bnMarket Capitalisation
54.7%
10.7%
4.8%
15.1%
ForeignShareholdings
Domestic Shareholdings
14.7%
6,800,839Number of Ordinary Shares (000’)
As at 10 Jan’18
and the public
1.201.11
1.28
1.45
1.78
1.521.64
Share Price Movement (RM)
Strong and Dynamic Board of Directors
Tan Sri Abdul Wahid Omar
Non-Independent Non-Executive Chairman
Dato' Sri Amrin Awaluddin
Managing Director
Dato' Rohana Tan Sri Mahmood
Senior Independent Non-Executive Director
Datuk Tong Poh Keow
Executive Director
Dato' Johan Ariffin
Independent Non-Executive Director
Tengku Datuk Seri Ahmad Shah Alhaj ibni AlmarhumSultan Salahuddin Abdul
Azjz Shah Alhaj
Independent Non-Executive Director
Dato' Jaganath Derek Steven Sabapathy
Independent Non-Executive Director
Dato' Seri Ahmad Johan Mohammad
Raslan
Independent Non-Executive Director
Datuk Dr Mohd Daud Bakar
Non-Independent Non-Executive Director
Datin Norazah Mohamed Razali
Independent Non-Executive Director
Board members have held prominent positions and directorships in public listed companies involving the property sector as well as the banking and finance sectors and
in governmental, regulatory and professional bodies
9
Qualified and Experienced Management Team
Dato' Sri Amrin Awaluddin
Managing Director
Datuk Tong Poh Keow
Group Chief Financial Officer
Strong management team with relevant experience and a proven track record in the real estate industry
10
Fairuz Radi
Chief Transformation Officer & Head,
Managing Director’s Office
Dato’ Wan Hashimi Albakri
Chief Operating Officer – Township
Development
TBA
Chief Operating Officer –
Integrated
(w.e.f. 16 Jan’18)
Choo Suit Mae
Group General Counsel
TBA
Chief Human Resources Officer
TBA
Chief Marketing & Sales Officer
(w.e.f. 1 Mar’18)
Tang Ai Leen
Chief Risk and Compliance
Officer
TBA
Chief Group Corporate
Assurance Officer
(w.e.f. 1 Mar’18)
Financial Highlights as at 30 June 2017
11
RM2.6bnRevenue
RM608mnPATAMI
RM818mnPBIT
32%PBIT Margin
7%ROIC
RM11bnInvested Cap
Pro forma shareholders’ fund post-listing: RM9.6bn
RM1.77bnUnbilled Sales
RM6.3bnShareholders’ Fund
RM1.92bnGross Sales Value
RM14.6bnTotal Assets
55%Avg. Take Up Rate
18%Gross Debt/Equity Ratio
Pro forma D/E Ratio post-listing: 12%
Financial Highlights as at 30 September 2017
12
RM464mnRevenue
RM420mnPBIT
24%Operating Profit Margin
RM421mnPATAMI
RM1.78bnUnbilled Sales
RM6.9bnShareholders’ Fund
RM528mnGross Sales Value
RM14.6bnTotal Assets
667Units Sold
15%Gross Debt/Equity Ratio
Note: 1QFY18 PBIT included the gain on disposal of Malaysia Land Development Company of RM41mn and the gain on disposal of 40% equity stake in Seriemas Development Sdn Bhd of RM278mn – total RM319mn
RM101mnOperating Profit
Sustainability Strategic Framework
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Sustainability Purpose:
“Contribute to a Better Society, Minimise Environmental Harm and Deliver Sustainable Development”
Ascribed to the United Nations Sustainable Development Goals (SDGs)
City of ElminaTownships For The Future
Earmarked as a model Wellness & LiveabilityTownship
Elmina Community Park
14
1. Overview
2. Strategies
3. Transformation Focus
4. Financial Performance
5. Appendices
Key Investment Highlights
15
#1Largest
developable land bank in
Malaysia
#2Strategic
locations with full spectrum of products
#3 Recognisedbrand with established track record
20,763 acres with remaining estimated GDV of RM100.4bn
A competitive advantage to monetize non-strategic land
Sustainable earnings contribution for the next 15 –20 years
Well positioned along the Guthrie Corridor Expressway and West Coast Expressway
Strategically located in Negeri Sembilan and Johor to benefit from Malaysia Vision Valley and High Speed Rail projects
Good track record of over 40 years in property development with success in transforming former estate lands into major townships
Received awards over the years for excellence and distinctions
Strategies & Growth Plans
16
Township Development
Product Diversification
Land bank management
Strategic Partnerships
Recurring Income
Leverage on the sizeable land bank located in strategic economic growth
areas
Increase exposure in integrated &
urban developments
Increase and accelerate current GDV of ~RM100bn
Develop and offer a variety of industrial developments such
as Built-To-Suit (BTS) products
Expand the development of
integrated TOD and TAD projects
Prioritise the development
located along the Guthrie Corridor
Expressway
Assess best and highest use for
each land parcel and dispose non-strategic lands
Strategic and opportunistic land
acquisitions
Retain strategic assets and
dispose non-performing
assets
Establish a core and experienced
team
Grow recurring income to 10%
of the PBIT by FY2022
Capture a larger share of the
property development
market in Malaysia
Proactively secure partnerships via
JV or opportunistic M&A
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Forest Reserve
DASH
Elmina East1,089 acres
Denai Alam & Bukit Subang1,250 acres
RRI
Bdr. Bukit Raja 1,2 and 3
4,333 acres
Subang Jaya2,241 acres
Ara Damansara693 acres
Bukit Jelutong2,205 acres
Setia ECO Park
Setia Alam
Elmina West2,661 acres
Kota Elmina1,540 acres
Lagong1,552 acres
Gamuda Garden
10,297 acres of land bank along
Guthrie Corridor Expressway with
remaining GDV of more than RM20 billion
Legend
Prioritise these
developments by offering affordable and saleable products
Good connectivity: GCE, DASH, NKVE, LATAR and
NSE Mass Rail Transit-1 (MRT 1) and
Keretapi Tanah Melayu Line (KTM)
Leverage on our prime locations in KlangValley
Ongoing developments
Guthrie Corridor ExpresswayDamansara-Shah Alam Elevated Expressway (DASH)
Future developments
New Klang Valley Expressway (NKVE)KL-Kuala Selangor Expressway (LATAR)North-South Expressway (NSE)
18
~12k acres of remaining developable land bank with a remaining GDV of RM85.9bn
¹ Remaining developable area includes 6 parcels of homestead lots and 60 vacant homestead plots² This GDV figure is preliminary and currently only available for 4 out of 26 future developments
Township/Development Name YearCommenced
Total Area (acres)
Remaining Developable Area (acres)
RemainingGDV
(RM bil)
Remaining Development
Period (years)
Niche / Integrated
ALYA, Kuala Lumpur 2012 62 51 6.8 9
Chemara Hills, Seremban 2013 44 3 0.1 1
USJ Heights, Subang Jaya 2007 375 17 0.2 3
SJ 7, Subang Jaya 2015 40 35 5.2 16
SJCC, Subang Jaya 2012 30 28 3.8 11
KL East 2011 160 97 2.0 12
Township
City of Elmina: Elmina West, Shah Alam 2015 2,661 2,623 16.1
City of Elmina: Elmina East, Shah Alam 2012 1,089 856 3.6 25
City of Elmina: Denai Alam & Bukit Subang 1999 1,250 104 0.7
Bandar Bukit Raja 2 & 3, Klang 2016 2,820 2,472 12.427
Bandar Bukit Raja 1, Klang 2002 1,513 144 2.2
Serenia City, Dengkil, Sepang 2013 2,370 1,486 8.7 19
Putra Heights, Subang Jaya 1999 1,796 86 3.8 12
Ara Damansara, Petaling Jaya 1999 693 74 5.8 6
Bukit Jelutong, Shah Alam 1995 2,205 165 2.1 7
Saujana Impian, Kajang 1995 600 13 0.01 1
Taman Melawati, Ulu Klang 1972 880 6 0.7 6
Nilai Impian 2, Nilai 2014 546 426 3.2 9
Nilai Impian 1, Nilai 1997 1,263 189 0.9 6
Bandar Ainsdale, Seremban 2011 562 195 1.3 8
Planters' Haven, Nilai 1996 250 81 n/a¹ n/a¹
Bandar Universiti Pagoh, Muar 2013 4,099 2,855 6.2 17
Taman Pasir Putih, Pasir Gudang 1981 356 20 0.1 6
TOTAL 25,664 12,026 85.9Future development 8,737 14.5²
Increase and Accelerate Current GDV of RM100bn
1
2
6
3
4
5
7
8
Well Positioned To Benefit From Malaysia Vision Valley (MVV)
To Bangi
To Johor
To Kajang
KLIA
Elite Highway
STRAITS OF MALACCA
PORT DICKSON
MALACCA
SELANGOR
SEREMBAN
Proposed High Speed Rail Station
LEKAS Highway
North-South Expressway
Parcel A:3,196 acres
Additional 8,793 acres
Sime Darby Property’s land
Sime Darby Plantation’s land
Legend
Sime Darby Berhad’s land
MVV Total Area: 379,086 acres
Sime Darby Property’s Interest:
Owned: Parcel A of 3,196 acres MVV Option Agreements: Additional 8,793
acres (currently held by SD Berhad)
PARCEL A : HIGH TECHNOLOGY AND INDUSTRIAL PARK
• A critical investment corridor for NegeriSembilan
• Limited land for industrial developments in Nilai & Senawang
• Increased foreign and local demand for high technology hub
• Continuation of Putrajaya, Cyberjaya and Kuala Lumpur International Airport development area
• Leverage on existing developed infrastructure & proposed HSR project
A new economic corridor and a Premier Urban Transformation Region under the National Transformation Agenda
BandarAinsdale
19
20
Option to Increase Land Bank Totaling~20k acres
Kulai, Johor
Kulai A estate: 1,862 acresKulai B estate: 3,186 acres
Land Options Agreement
with Sime Darby Plantation
1 1 , 8 0 6 a c r e s
SD Plantation entered into 9 call option agreements
with SD Property pursuant to which SD Property has options
to purchase these lands at future market value
Options Validity: 5 years, extendable by 3 years
Selangor
Sepang estate: 2,000 acresLothian Estate: 485 acres
Sungai Kapar estate: 993 acresWest Estate, Carey Island: 2,000 acres
Byram estate: 864 acres
Ainsdale estate: 268 acres
Bukit Selarong estate: 148 acres
Kedah
Penang
NegeriSembilan
20 ,599acres
MVV Options Agreement
with Sime Darby Berhad
8 , 7 9 3 a c r e s
Kumpulan Sime Darby and Sime Darby Property entered
into several call option agreements for lands within
the MVV development region
Options Validity: 5 years, extendable by 3 years
Labu, New Labu (Kirby), New Labu (Main) and Hamilton estates
Sua Betong estates
Unlock Value from Battersea Project with Remaining GDV of £8.3bn
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Battersea Power Station (BPS) : Established in Jul’12
JOINT VENTURE
4 0 : 4 0 : 2 0Sime Darby Property: SP Setia : EPF
10-15Years to project completion
42 acresSite Area
~£9bnEstimated GDV
Phase 2: Take-up rate of 90%, representing sales value of £577mn
• Target completion in Q4 2020
The largest office tenant atBattersea, occupying about500,000 sq. ft. of space(approx. 40% of the total officespace) from 2021
Phase 3: Take-up rate of 71%, equivalent to sales value of £582mn
• Target completion in 1H 2021
Phase 1 – Circus West
RM87mn Recognition of profit in 1QFY18
upon handover of 431 units(FY2017 – Profit recognition of RM140mn (338 units)
Total 769 units of Phase 1 have been handed over
to-date. Full completion of the handover in Dec’17
Tunneling work completed for Northern Line Extension as boring machines break through at Kennington
Increase Product Diversification
22
Township & Integrated
Development
Premium and Branded Lifestyle
TOD and TAD
Concepts
IndustrialSegment
ResidentialStrata
Development
• Comprehensive flagship township along the Guthrie Corridor Expressway
• An integrated development within Ara Damansara
• Freehold service residence with 6 acres of skyparkrecreational area
• The Véo & QuarzaResidences, featuring modern contemporary living
• Served by the Putra Heights Interchange, USJ Interchange, NKVE, LDP, ELITE, KESAS & SKVE Highways
• Lifestyle destination with a modern multi-modal transportation system
• Comprises of 8 development parcels spanning 61-acres covering residential, commercial & retail components
• Encompasses one of Malaysia’s premier golf and country clubs, TPC KL
• Offers Built-To-Suit (BTS) facilities to capitalise on the township's connectivity to major highways and ports
• A variety of industrial projects to serve as an industrial and high technology hub
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Three-Pronged Approach to Active Land Bank Management
DEVELOPSTRATEGIC
PARTNERSHIPS MONETISATION
Drive cost reduction initiatives to enhance profitability
Prioritise and focus on growth of high performing townships
A r e a s :
Townships: Elmina West, Elmina East, Serenia City, Bandar Bukit Raja & Bandar Universiti Pagoh
Integrated: SubangJaya City Centre (SJCC) and KL East
Earmark potential developers to co-develop ongoing and greenfield townships as a mean to:
Accelerate development of our sizeable land bank
Leverage on partners’ expertise and resources
O n g o i n g P r o j e c t s :
Strategic monetisation of parcels of land outside key development focus in order to:
Enhance the land value and expedite the development via other developers
Speedy realisation of land value
P a s t T r a n s a c t i o n s :
2015: Elmina land (135 acres) to E&O
2016: Serenia City land (346 acres) to Sunsuria Semenyih land (238 acres)
2017: Semenyih land (803 acres) to I&P
2018: Disposal of Malaysia Land Development
Company & 40% stake in SeriemasDevelopment
To be disposed within 1-2 years: • 1,614 acres - Kedah • 37 acres – Sabah
Bandar Bukit Raja Industrial Park, establishment of the joint venture currently in progress
Strategic Partnerships
Leverage on the expertise and competencies of key strategic partners such as…
Malaysia Vision ValleySixth Economic Corridor in
Malaysia
PJ MidtownIntegrated project at the epicenter of Petaling Jaya
Battersea Power Station (BPS) Project
A major regeneration project in Nine Elms
Melawati MallThe first major shopping mall in
Taman Melawati
Radia Bukit JelutongMixed development at the heart
of Bukit Jelutong
24
25
Grow Recurring Income to 10% of Total PBIT by 2022
#1Build-To-Suit
(BTS) & Lease
Industrial Assets
#2Divest non-
core hospitality
assets
#3Enhance value via
creation of existing assets
Joint venture with Mitsui International to develop a high technology BTS industrial hub at Bandar Bukit Raja 2 & 3 (53 acres)
Review partnership to transform Serenia City into a thriving business and industrial park
I m m e d i a t e F o c u s : T a r g e t s( n e x t 3 - 5 Y e a r s )
Sizeable recurring income from the
industrial segment
Sizeable recurring
income from the industrial
segment
Review profitability of existing portfolio and divest non-performing assets in Australia, Singapore and Vietnam
Stable earnings and cash flows
Historical Disposals: FY2015: Subang AvenueFY2016: 2 assets in S’pore & a hotel in MalaccaFY2017: 1 asset in S’poreYTD FY2018: 1 asset in Australia
Optimise value creation of Melawati Mall
Target completion of KL East Gallery by mid-2018
Increase operational focus to grow the commercial and office segments Such as Oasis Damansara and
SJCC
Establish a portfolio of high
value retail & commercial
assets
1. Overview
2. Strategies
3. Transformation Focus
4. Financial Performance
5. Appendices
26
Transformation for Value Creation
3 focus areas for quick wins during FY18
▪ Reduce main infrastructure cost▪ Optimise building cost by refining
structural and M&E design
▪ Rationalise and control of staff related costs
▪ Optimise township maintenanceexpenditure
▪ Enhance consultant and contractor selection process
▪ Integrate tender process with authority approval
▪ Enhance project timeline tracking system▪ Exploring optimal business models
▪ Strengthen market intelligence andconsumer insight platform
▪ Overhaul digital & sales gallery experience
▪ Leverage on strategic partnership
▪ Strategic sourcing of key materials ▪ Tender strategy enhancement▪ Strategic collaboration with business
partners
Transformation initiatives Aspirational Targets
10 - 20% reduction in targeted overheadexpenditure (est. cost of RM300m)
4 - 7% cost reduction for 8 targeted projects (est. procurement spend of RM550m)
Shorten development time:• Landed: from average 39
months to 30 months• Highrise: from average
63 months to 45 months
Increase Unbilled Sales to RM2bn – RM 2.5bn
5 - 10% cost reduction through value engineering (est. construction cost of RM1.1bn)
Increase sales
Improve speed to market
Strategic cost management
Focus Area
Sales & marketing
End-to-end cycle time
Procurement
Design to value
General & Admin.
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Achievements
To date, 23 initiatives have been implemented across the 3 focus areas
Achievements
23 initiatives implemented
RM69mn cost savings
potential
Key Highlights
15% reduction in structure costs of a high rise development through value engineering
Average of 13% savings in Main Infra contracts awarded to date
Optimised staff related costs Reduced township maintenance costs and closure
of tail end townships
Enhanced end-to-end development process by overlapping tender process with authority approval (potential time saving of 4-6 months)
Appointed authority liaison to expedite approval (potential time saving of 3-5 months)
Streamlined internal approval process
Revamped SJCC Lot 15 sales gallery Strategic partnerships on end-financing packages Enhanced digital marketing and digitized sales
funnel tracking
Identified 12 key materials for strategic sourcing Strategic earth transfer between townships Introduced incentivised consultant fee scheme
Increase sales
Improve speed to market
Strategic cost
management
28
29
1. Overview
2. Strategies
3. Transformation Focus
4. Financial Performance
5. Appendices
RM’mn 1Q FY2018
C o n t i n u i n g O p e r a t i o n s
RevenueRM464mn ( 4% YoY)
1QFY17: RM444mn
Segment ResultsRM101mn ( 87% YoY)
1QFY17: RM54mn
Property Development
RM115mn ( 191% YoY)
1QFY17: RM40mn
• Share of profit of RM87mn from Battersea Power Station project (1QFY17: Loss of RM1mn)
• Higher contribution from Elmina West, Elmina East and Serenity Cove, a project in Gold Coast, Australia
Property InvestmentRM-7mn1QFY17: RM8mn
• Share of loss of RM5mn from Sime Darby CapitaLand (Melawati Mall) Sdn Bhd• Melawati Mall was opened in Jul’17 and is
still in its early stage of operation with occupancy of about 60%
Leisure and Hospitality
RM-7mn 1QFY17: RM6mn
• 1QFY17 included the reversal of an impairment of property, plant and equipment of RM10mn
Financial Highlights - First Quarter FY2018
30
Gross Sales Value Unbilled Sales (As at 30 Sep’17)
Units Sold
1QFY18: 667(vs 1QFY17 : 435 units)
RM1,778mn(As at 30 Jun’17: RM1,766mn)
1QFY18: RM528mn(vs 1QFY17: RM639mn)
* Includes Cash held under Housing Development Accounts
Long-term Borrowings
79%
Short-term Borrowings
21%
Total Borrowings
RM1,100mnTotal Borrowings
RM7,150mn
RM1,100mn RM1,048mn
Equity Debt Bank balances,deposits and
cash*
Capital Structure
15%Gross
Debt/Equity Ratio
Financial Position as at 30 September 2017
Note: Debt excluded liabilities associated with assets held for sale
31
1%Net
Debt/Equity Ratio
Inventories
319.5
878.5801.5
2015 2016 2017
Completed Development Unit Inventories
RM million
Inventory Turnover Period
18.4
32.3 31.8
2015 2016 2017
Months
2016 and 2017:
• The higher completed development unit inventories (as compared to RM319.5mn in 2015) were largely due to unsold units from the East Residence development at ALYA KL of RM580mn in 2016 and RM374mn in 2017.
• The management is currently working on the marketing strategy to sell these units.
32
298.5
427.5
1113
Total Excluding East Residence Development
Cash Flows from Operating Activities
(RM million) 2015 2016 2017 As at 30 Sep’17
Cash flow from operating activities 713.9 566.8 527.8 424
Land held for property development (228.5) (224.1) (4.2) (690.4)
Property development cost (610.1) (552.6) (619.7) (87.9)
Others (2.2) 535.7 602.5 (23.7)
Changes in working capital (840.8) (241.0) (21.4) (802)
Cash (used in) / generated from operations
(126.9) 325.8 506.4 (378)
Tax paid (173.2) (140.7) (135.4) 15
Zakat paid (1.0) (1.0) (1.0) -
Dividend received from a joint venture - - 119.2 -
Dividends received from associates 9.0
1.8 131.8 -
Operating cash flows (used in) / generated from continuing operations
(292.0) 185.9 621.1 (363)
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6,323.2
264.7 Minority Interest
Equity Debt Cash
9,645.4
264.7 Minority
Interest
9,910.1 1,168.9 1,232.5
Equity Debt Cash
Capital Structure Overview
As at 30 June 2017
Pro-forma Capital Structure
Maturity Period of Indebtedness (30 Jun 2017)
RM million
Total = RM 1,168.9 million
230.2
450.1
308.4
180.2
Within 1 year 1-2 years 3-5 years More than 5 years
RM million
34
20% 39% 26% 15%
Actual Capital Structure
6,587.9 1,168.9 1,075.3
Gross D/E Ratio: 18%Net D/E Ratio: 1%
Gross D/E Ratio: 12%
Dividend Policy
The declaration of interim and final dividends is subject to the discretion of our Board. However, our ability to pay will depend upon a number of factors, including:
the level of our cash, gearing, return on equity and retained earnings;
our expected financial performance;
our projected levels of capital expenditure and other investment plans;
our working capital requirements; and
our existing and future debt obligations.
We propose to pay dividends out of cash generated from our operations after setting aside necessary funding for capital expenditure and working capital requirements.
As part of this policy, our Company targets a dividend payout ratio of not less than 20.0% of our consolidated profit attributable to the owners of our Company under MFRS,
beginning 1 July 2017
35
Thank You
Investor Relations
Sime Darby Property BerhadCorporate Website: www.simedarbyproperty.com
Investor Relations: https://www.simedarbyproperty.com/investor-relations.html
37
1. Overview
2. Transformation Focus
3. Strategies
4. Financial Performance
5. Appendices
Township Type of product Date Launched
ExpectedCompletion
Price Range (RM’000)
Units Launched
Total Gross Sales Value
(RM mn)
UnitsSold as at25 Dec’17
Take-up Rate as at 25 Dec’17
KLANG VALLEY
Elmina WestDSLH Jul-16 2018 794-1,386 151 138.7 115 76%
DSLH Nov-16 2018 789-1,453 278 242.6 126 98%
Elmina EastSemi-D Sep-16 2018
1,880-2,200
80 165.3 68 85%
DSLH Mar-17 20191,160-2,001
67 86.5 49 73%
Serenia City 3-storey Semi-D factory
Jul-16 2018 From 8,211 15 125.2 10 67%
Bandar Bukit Raja 2 & 3
DSLH Dec-16 2018 649-942 230 161.8 199 87%
DSLH May-17 2019 682-1,012 82 61.4 54 66%
Bandar Bukit Raja 1 Shop office May-17 2019
1,132-1,380
12 15.1 12 100%
NEGERI SEMBILAN
Bandar Ainsdale DSLH Jul-16 2018 581-846 43 29.6 23 53%
JOHOR
Bandar Universiti Pagoh
DSLH Jan-17 2019 363-496 177 68.3 124 70%
TOTAL 1,135 1094.5 780
Ongoing Projects (Launched up to June’17)
Notes: - DSLH refers to double-storey link houses- All land tenures are freehold except for the development in Bandar Universiti Pagoh which is leasehold
38
Township Project NameDate
LaunchedPrice Range
(RM’000)Units
Launched
Total Gross Sales Value
(RM mn)
UnitsSold as at 25 Dec’17
Take-up Rate as at 25 Dec’17
KLANG VALLEY
Bandar Bukit Raja 2 & 3
Casira 2 Jul’17 739-1,183 111 90.8 75 68%
Elmina West Elmina Green 1 Oct’17 684-1,195 187 143.5 113 60%
Liana Nov’17 1,212-2,149 72 101.7 29 40%
Bukit Jelutong Tara Oct’17 2,009-2,626 14 32.0 9 64%
Putra Heights HT5Q Oct’17 933-1,326 6 6.7 1 17%
SJCC Lot 15 Nov’17 594-1,010 204 156.7 130 64%
Denai Alam Ferrea Nov’17 761-1,455 120 103.0 87 73%
NEGERI SEMBILAN
Chemara Hills Castilla 2 Oct’17 1,467-1,726 34 53.4 9 27%
Bandar Ainsdale Redup Oct’17 656-973 45 35.2 16 36%
TOTAL 793 723.0 469.0
Ongoing Projects (Launched in YTD FY2018)
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Proposed Launches (2H FY2018)
Township Type of product Total units Expected completionEst. GDV (RM mn)
KLANG VALLEY
KL East Serviced apartment 254 2020 171
Elmina West DSLH 579 2020 380
DS shop office 11 2020 14
Elmina East DS shop office 14 2019 26
Denai AlamDSLH 228 2019 177
DS shop office 17 2020 21
Bandar Bukit Raja2 & 3
DSLH 111 2019 75
Serenia City DSLH 302 2020 166
Putra Heights Medium cost apartment 1,700 2021 355
Bukit Jelutong Serviced apartment 108 2019 343
NEGERI SEMBILAN
Nilai Impian DSLH 132 2020 62
JOHOR
Bandar UniversitiPagoh
Commercial office 35 2020 33
Commercial office 38 2021 36
DSLH 112 2020 42
TOTAL 3,787 1,901
Notes: - All land tenures are freehold except for the developments in Bandar Universiti Pagoh- Estimated GDV as at 31 Oct 2017
40
Breakdown of External Revenue and PBIT
1QFY2018 vs 1QFY2017
REVENUE
In RM'mn 1QFY2018 1QFY2017 YoY %
Continuing Operations
Property Development 424 398 7
Property Investment 12 17 (29)
Leisure and Hospitality 28 29 (3)
Sub-total 464 444 4
Discontinuing Operation 9 13 (33)
Total Revenue 473 457 3
PBIT
In RM'mn 1QFY2018 1QFY2017 YoY %
Continuing Operations
Property Development 393 40 893
Property Investment (7) 139 (105)
Leisure and Hospitality 34 6 509
Sub-total 420 184 128
Discontinuing Operation 2 - >100
Total PBIT 422 184 129
41
Historical Key Financial Metrics
FY2015, FY2016 and FY2017
Notes: • Revenue, PBIT and PATAMI refer to contributions for the financial year from the continuing operations only• Calculation of Return on Invested Capital (ROIC) based on PBIT and balance sheet of both continuing and discontinuing operations
42
2,803,023
2,564,399
2,590,737
3,253,933
3-Year
Average
2017
2016
2015
Revenue
639,270
607,926
749,076
560,809
3-Year
Average
2017
2016
2015
PATAMI
872,307
817,649
978,419
820,852
3-Year
Average
2017
2016
2015
PBIT
10%
7%
12%
10%
3-Year
Average
2017
2016
2015
ROIC
25%
38%
32%
31%
Margin
685
71%
(9)
-1%
(34)
-3%
239
25%
Operating Profit
• FY2016: • Recorded gains on land disposal at Semenyih (RM185mn) & Serenia City (RM126mn) and gains on disposals of 2
property investment assets in Singapore (RM447mn)
• FY2017: • Write down of inventories at ALYA KL and Putra Heights (RM149mn) offset by the gain on land disposal at
Semenyih (RM413mn) and the gain on disposal of SD Enterprise Centre (Alexandra Road), Singapore (RM145mn)
RM million
43
517
45%
19
2%(81), -7%
518
46%
399
68%(31)
-5%
(15)
-4%
146
25%
881 973 499
FY2015 FY2016 FY2017
Operating Profit:
(61) 5 319Share of results of associate/JV:
821 978 818PBIT:
Increase in 2017 revenue due torecognition of sale of completedinventories in ALYA KL amounting toRM112.71mn
2017 gross profit includes write down ofinventories of ALYA of RM130mn
Revenue and Gross Profit of Property Development
Projects Revenue Gross Profit
RM mn 2015 2016 2017 2015 2016 2017
Ara Damansara 334.2 223.0 434.7 64.9 18.1 58.7
Bandar Bukit Raja 833.5 331.3 215.6 287.3 150.8 86.6
Bukit Jelutong 73.8 24.8 22.8 34.1 6.1 1.2
City of Elmina: Elmina East and West
672.3 362.1 353.4 278.9 154.8 84.4
City of Elmina: Denai Alam 175.4 88.1 76.2 74.1 40.1 61.2
KL East 111.3 115.7 135.2 15.4 19.0 (0.9)
Putra Heights 91.1 51.7 133.6 6.4 19.3 9.4
Saujana Impian 18.3 45.7 31.0 3.6 9.1 6.0
Semenyih 0.3 242.3 434.0 0.2 (57.2) (11.5)
Serenia City 1.3 391.2 41.1 (2.1) (2.9) 17.4
Subang Jaya City Centre 36.3 21.8 1.2 (12.2) (1.6) (1.8)
Bandar Ainsdale 132.5 95.3 52.6 11.9 7.6 4.9
Chemara Hills 38.0 32.7 35.4 12.6 1.3 1.0
Nilai Impian 248.7 199.3 176.0 83.7 48.3 52.6
Bandar Universiti Pagoh 37.8 22.9 62.7 12.4 6.0 17.1
Taman Pasir Putih 156.7 62.8 17.8 94.7 29.5 (4.1)
Others 36.2 24.6 168.3 12.7 8.8 (69.5)
Sub-total 2,997.8 2,335.3 2,391.7 978.7 457.2 312.7
Net Operating Expenses (294.2) (311.2) (347.6)
Operating Profit (Excl. disposal gains) 684.5 146.0 (34.9)
Net Gain on Disposals 157.3 371.0 435.0
Operating Profit 841.7 517.0 400.1
Gross Profit Margin (%) 32.6% 19.6% 13.1%
Operating Profit Margin (Excl. disposal gains) (%) 22.8% 6.3% (1.5%)
Operating Profit Margin (Incl. disposal gains) (%) 28.1% 22.2% 16.7%
Higher revenue in 2016 mainly due to disposal of land of RM129mn
Lower revenue in 2016 and 2017 due tocompletion of several phases and someprojects being at the tail end of theconstruction progress
Higher revenue in 2017 due to the sale of 4 blocks of commercial office towers amounting to c.RM343.3mn
1
2
5
7
1
2
Higher revenue in 2017 due to higherconstruction completion and sale ofinventories
2017 gross profit includes write down ofinventories (RM19mn)
Higher revenue in 2016 and 2017 due todisposal of land amounting to RM242mnand RM433.95mn, respectively
Lower revenue in 2016 due to completionof several phases in 2015 and new phaseslaunched towards the end of FY2016
33
3
44
6
5
6
7
44
8• 2015: Gain on disposal of 50% equity
stake in the JV with Sunsuria(RM157mn)
• 2016: Gains on land disposal in SereniaCity (RM129mn) and Semenyih(RM242mn)
• 2017: Gain on land disposal inSemenyih (RM434mn)
8
Revenue and Gross Profit of Property Investment
Property Revenue Gross Profit
RM ‘mm 2015 2016 2017 2015 2016 2017
Wisma Zuellig, Selangor 2.0 - - 1.8 (0.2) (0.2)
Wisma Guthrie, Selangor 1.6 2.7 2.6 0.2 1.4 1.5
Oasis Square, Ara Damansara 14.0 14.0 14.0 4.5 6.3 3.9
Wisma Sime Darby, KL 19.0 19.9 19.8 0.6 1.7 2.6
SD Business Centre, Spore 15.9 18.6 4.6 12.5 15.0 3.6
SD Centre, Spore 19.9 22.1 - 16.1 17.2 -
SD Enterprise Centre, Spore 5.6 5.8 - 4.3 4.2 -
160 Dundee Street, UK 7.9 6.2 5.9 4.9 3.5 3.8
Others 6.2 5.6 7.7 7.5 7.3 7.7
Sub-total 92.1 94.9 54.5 52.3 56.5 22.9
Net Operating Expenses (61.0) (37.3) (53.8)
Operating Profit (Excl.disposal gains) (8.7) 19.1 (31.0)
Net Gains on Disposals 81.9 479.4 144.9
Operating Profit 73.2 498.5 113.8
Gross Profit Margin (%) 56.7% 59.5% 42.0%
Operating Profit Margin (Excl. disposal gains) (%) (9.5%) 20.1% (56.9%)
Operating Profit Margin (Incl. disposal gains) (%) 79.5% 525.3% 208.8%
Nil contribution from Wisma Zuellig in 2016 due to expiry of the tenancy agreement in 2015.
Signed a lease agreement with Reagan in 2017
• Currently under renovation and target to be operational in May 2018
1
1
2
45
2
In 2016, recorded total net gains of RM479.4mn from the disposals of two properties in Singapore (SD Centre (Dunearn) and SD Business Centre (Kilang)
In 2017, the net gains of RM145mn mainly attributable from the disposal of SD Enterprise (Alexandra) in Singapore
Revenue and Gross Profit of Hospitality & Leisure
Property Revenue Gross Profit
RM ‘mm 2015 2016 2017 2015 2016 2017
Saujana Impian Golf & County Club, Selangor
5.7 5.5 6.0 1.1 0.9 1.9
Sime Darby Convention Centre, KL 20.8 26.8 27.3 5.6 9.6 8.8
TPC Kuala Lumpur 49.4 50.2 53.9 36.8 36.4 40.6
Equatorial Hotel, Malacca 43.7 38.4 - 27.5 19.9 -
Genting View Resort, Pahang 4.4 4.4 3.0 1.1 0.2 0.2
Darby Park Serviced Residences, Margaret River, Australia
6.6 6.4 6.6 4.1 3.9 4.0
Darby Park Serviced Residences, Subiaco, Australia
7.2 5.1 - 5.3 3.7 (0.005)
Karri Valley Resort, Australia 9.0 9.3 9.5 3.6 3.7 3.6
Darby Park Executive Suites, Spore 11.0 9.3 9.3 7.7 5.9 6.3
Darby Park Serviced Residences, Vietnam
3.1 2.3 1.9 1.9 1.2 0.9
Others 3.2 2.8 0.6 0.5 0.6 0.3
Sub-total 164.0 160.6 118.2 95.2 86.0 66.6
Net Operating Expenses (128.7) (166.7) (81.5)
Operating Profit (Excl. disposal gains)
(33.5) (80.7) (14.9)
Net Gains on Disposals 0.1 38.3 0.1
Operating Profit (33.4) (42.4) (14.8)
Gross Profit Margin (%) 58.0% 53.6% 56.3%
Operating Profit Margin (Excl. disposal gains) (%) (20.4%) (50.3%) (12.6%)
Operating Profit Margin (Incl. disposal gains) (%) (20.4%) (26.4%) (12.5%)
Lower contribution in 2016 mainly due to the lower occupancy rate
1
1
46
In 2016, the net gains of RM38.3mn was mainly attributable to the disposal of Syarikat Malacca Straits Inn Sdn Bhd in Malacca
2
2
Melawati Mall, Kuala Lumpur (JV with CapitaLand
Malls Asia) Launched in July 2017 Net lettable area of 617k sq.ft. Committed tenancy of 76% &
occupancy rate of 62% as at 30 Sep’17
KL East Gallery, Kuala Lumpur
Targeted to open in the 4th quarter of 2018
Net lettable area of 384k sq. ft.
Sime Darby Convention
Centre, Malaysia
TPC Kuala Lumpur, Malaysia
• Formerly known as Kuala Lumpur Golf & Country Club
Darby Park Executive Suites,
Singapore
Darby Park Serviced Residences, Vung Tau,
Vietnam
Sime Darby Property Corporate Tower
Block F, Oasis Square• Occupancy rate of 92%
as at 30 Sep’17
Asset Portfolio
Property Investment, Hospitality and Leisure
Property Investment Hospitality & Leisure
RETAIL MALLS
OFFICE SPACES
47
Beyond A Township Developer
~RM6bn~70% commercial
GDV
~85 acres
Oasis Autocity(Office/ Automobile
Exhibition)
Oasis Place(Serviced apartments,
retails space)
Oasis Tower (Office)
Oasis Plantation (Office)
Oasis Mall (Complex commercial)
Oasis Square (Office/ retail space/ serviced apartments)
Oasis Atelier(Retail space/ serviced
apartments)
Oasis Kyla (Serviced apartments)
(Oasis Corporate Park (1)
(Hotel/ office/ retail space/ serviced apartments)
Oasis Rio (Office/ retail space/ serviced apartments)
Oasis Gallery (Property exhibition)
Oasis Central (Office/ retail space/ serviced apartments)
(1) Parts of Oasis Corporate Park have been completed (Medalla, Centum, Meritus, and Augustus).
Transformation of Ara Damansara to a Transit Oriented & Adjacent Development
48
Oasis Plantation(Office)
Oasis Square(Office/retail
space/serviced apartments)
Oasis Gallery(Property exhibition)
LRT Ara Damansara
Station
Freehold
LRT LembahSubangStation
Transforms the look and prospects of Ara Damansara, primarily a residential area by providing a much-needed commercial center
Sustainability Key Performance Indicators
49
Sustainability Leadership Index Critical Sustainability Key Performance Indicators (KPIs) will guide Sime Darby Property to be a Sustainability Leader by 2020
Reducing Lost Time InjuryFrequency Rate (LTIFR) & Increasing ‘Concerned Reporting’
Increasing Lean Six Sigma (LSS) Monetary Benefits
Enhancing Global Reporting Initiative (GRI) Sustainability Reporting
Reducing Green House Gas(GHG) Emissions
Reducing Waste Generation
Protecting Water Resources
• Zero fatality• “Best in Class”• LTIFR of 1.0
• Financial savings at 1.5% of• Sime Darby Property’s revenue
KPIs Targets
• Best in class• Benchmark by other in each sector
• 100% achievement of reduction target• Exceed national expectations
• Managing waste for 6 key townships and Operating Units
• Adopt responsible water stewardship