UEM SUNRISE ANNOUNCES PROPERTY SALES OF RM434 MILLION, MORE THAN DOUBLED ITS SALES NUMBERS IN 1Q 2017

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1 FOR IMMEDIATE RELEASE UEM SUNRISE ANNOUNCES PROPERTY SALES OF RM434 MILLION, MORE THAN DOUBLED ITS SALES NUMBERS IN 1Q 2017 Property Sales up by 156% compared to 1Q 2017 contributed mainly by Central region and International projects Profit after tax and non-controlling Interest improved by 9% compared to 1Q 2017 Digital Media: Achievement in property sales and improvement in profit after tax and non-controlling interest by 9% for the first quarter ended 31 March 2018 compared to the corresponding period in 2017 are positive indicators amidst challenging property market environment. Full Release : KUALA LUMPUR, 22 May 2018 UEM Sunrise Berhad ( UEM Sunrise or the Company ) today announced its financial results for the first quarter ended 31 March 2018 ( 1Q 2018 ). The Company s property development sales for the quarter was RM434.3 million, higher by 156% compared to the sales achieved in 1Q 2017 of RM169.4 million. 39% of the total property development sales is contributed by the Central region largely from Residensi Solaris Parq in Dutamas, Kondominium Kiara Kasih in Segambut and Symphony Hills in Cyberjaya. Kondominium Kiara Kasih is the Company s first Rumah Wilayah Persekutuan ( RUMAWIP ) in collaboration with the Ministry of Federal Territories. Priced at RM300,000 per unit with built-up area of 850 square feet, the 719 units development was launched in March % of the property development sales is from the Company s international projects Mayfair and Conservatory in Melbourne, Australia while the remaining 24% is from the Southern region mainly from Serimbun near Bukit Indah followed by Estuari Gardens in 1

2 Puteri Harbour and Denai Nusantara, all of which are in Iskandar Puteri. Serimbun, launched in February 2018 is the Company s latest mid-market double storey terrace houses in Iskandar Puteri. Priced from RM630,000 per unit, 215 units were launched with the built-up area of each unit ranging between 1,993 to 2,117 square feet. As at to date the Company has launched projects with a total Gross Development Value ( GDV ) of RM356.8 million. Major developments such as Teega in Puteri Harbour as well as Residensi22 and Arcoris both in Mont Kiara were completed in 2017, while successful new launches namely Residensi Solaris Parq, Kondominium Kiara Kasih and Serimbun are at the initial stage of their respective developments. Other on-going developments namely Almas and Estuari Gardens both in Puteri Harbour, Denai Nusantara, Sefina Residences in Mont Kiara as well as Serene Heights Bangi continue to be progressing well. Revenue recognition for on-going developments for 1Q 2018 contracted to RM287.7 million compared to RM420.3 million in 1Q 2017, a decrease of approximately 32% considering that the development cycles for the new launches are still at the initial stage while Teega, Residensi22 and Arcoris are completed. Nonetheless, profit after tax and noncontrolling interests for the period increased to RM25.3 million, an improvement of approximately 9% compared to RM23.3 million in 1Q 2017 driven by containment of operating cost, higher other income and net contribution from associates and joint ventures, albeit a lower operating profit in tandem with lower revenue. Property development activities contributed a total of RM244.6 million representing 85% of the period s total revenue with 54% contributed by the Southern region mainly from 2

3 Almas and Estuari Gardens both in Puteri Harbour and Denai Nusantara, while the remaining 46% is from the Central region largely from Sefina Residences and Residensi 22 in Mont Kiara followed by Serene Heights Bangi. The Company is no longer recognising revenue for its international projects based on progress completion and will instead recognise upon completion and settlement in compliance with the adoption of the Malaysian Financial Reporting Standards ( MFRS ) effective 1 January 2018 for property developers. 4% of the Company s total revenue for the period is from the disposal of pocket land within Iskandar Puteri. Unbilled sales as at 31 March 2018 stood at RM4.8 billion. Commenting on the financial results, Anwar Syahrin Abdul Ajib, Managing Director/Chief Executive Officer of UEM Sunrise said, We are very pleased with our sales performance for this quarter. Having increased by a substantial 156% and achieving RM434.3 million compared to last year s corresponding quarter, the performance is highly positive amid today s soft property market environment. Interest on our completed properties the likes of Symphony Hills in Cyberjaya, Nusa Bayu and East Ledang both in Iskandar Puteri has also intensified following our sales campaign A New Year, A New Home which started in February Comprising various value proposition, such as Easy Entry, Easy Plan, Easy Move and Easy Privileges, the sales campaign is not only for completed properties, but also for selected ongoing projects. These inventory monetisation efforts are expected to enhance cashflow position and at the same time, reduce the level of inventory in our balance sheet. Touching on the sales contribution of newly launched products, The launch of Serimbun and Kondominium Kiara Kasih with total GDV of RM139.3 million and RM217.5 million in February and March respectively, contribute close to RM70 million for the quarter. As at to-date however, total sales including bookings for both these projects is approximately 3

4 RM184 million, with RM100 million expected from Serimbun. In terms of take-up including bookings, Serimbun is 73% while Kondominium Kiara Kasih is 39%. We are aware of the market s needs for more mid-market and affordable residential products within strategic locations and have devised our deliverables to meet such expectations, which proved to be effective as seen in the sales performance of Serimbun and Kondominium Kiara Kasih. Having said that however, our focus is not only on affordable and mid-market products. Being a diverse property developer with portfolio that encompasses townships, high-rise residences, and mixed commercial developments including properties ranging from the affordable market segment to mid and high-end segments, we have the flexibility to change our product mix to suit demand. Among the key performers of our high-end segment is our ultra, luxurious Mayfair apartment designed by world renowned Dame Zaha Hadid in Melbourne and our premium two-tower Residensi Solaris Parq in Dutamas. Remarking on the recent acquisition of land in Kepong from Datuk Bandar Kuala Lumpur ( DBKL ), After much negotiations, I am pleased to share that in April 2018, we acquired 72.7 acres of land in Kepong, Kuala Lumpur from DBKL at a purchase consideration of RM416.4 million via a joint venture arrangement with a private developer Mega Legacy Equity Sdn Bhd ( MLE ). Both the Company and MLE via a joint venture will develop the land with UEM Sunrise taking the lead. The land will see the construction of two interchanges connecting directly to MRR II with the first interchange to be completed within eighteen months from the first launch, a residential apartment targeted in We plan to develop an integrated mixed residential and commercial development with an estimated GDV of RM15 billion over a period of 15 years. At present, we are observing the fulfilment of the conditions precedent of the relevant agreements. 4

5 Commenting on the impact of the adoption of the MFRS framework particularly MFRS 15 in relation to revenue from contracts with customers, The bulk of the revenue in 2017 was from the Australian projects which at that time were recognised based on progress completion. In 1Q 2017, about RM117 million was recognised for Aurora Melbourne Central and Conservatory. With the adoption of MFRS 15, we no longer recognise international projects based on progress completion and instead recognise them upon completion and settlement. But due to the strong construction progress for both these projects; Aurora Melbourne Central 65% completed and Conservatory 66% completed as at end of March, we are confident of completing the first separable parcel comprising 32 levels of Aurora Melbourne Central in the third quarter of this year while the entire Conservatory towards the end of Revenue for land divestments will also now be recognised upon transfer of control to the purchasers. The proceeds from the disposal of lands to Country View Berhad and Kimlun Corporation Berhad, the agreements of which were signed last year, are expected to be recognised in the third quarter and second or third quarter of this year, respectively. The Company remains prudent in its sales target of RM1.2 billion and GDV target of RM1.2 billion for 2018 and will activate further launches depending on market condition. -Ends- 5

6 About UEM Sunrise UEM Sunrise Berhad ( UEM Sunrise or the Company ) is a public-listed company and one of Malaysia s leading property developers. It is the flagship company for township and property development businesses of UEM Group Berhad ( UEM Group ) and Khazanah Nasional Berhad ( Khazanah ). UEM Group is wholly-owned by Khazanah, the strategic investment fund of the Government of Malaysia. The Company has core competencies in macro township development; high-rise residential, commercial, retail and integrated developments; as well as property management and project & construction services. In Malaysia, UEM Sunrise is the master developer of Iskandar Puteri, one of the five flagship zones of Iskandar Malaysia and is currently undertaking the development of the area into a regional city. Upon completion, Iskandar Puteri will become the largest fully integrated urban development in Southeast Asia that will provide significant investment, financial and business opportunities to the economic growth and development of the region. Gerbang Nusajaya, the second phase development of Iskandar Puteri is a 4,551-acre project which features various catalytic developments including Nusajaya Tech Park, Fastrackcity, Melia Residences, Estuari Gardens, Denai Nusantara and Serimbun. Gerbang Nusajaya will be developed over a period of 25 years and will include components such as lifestyle & retail parks, campus offices & industrial parks as well as residential precincts. It is also within easy access of future Transit Oriented Development sites and the High-Speed Rail Station in Iskandar Puteri, connecting Singapore and Kuala Lumpur. In the Central Region of Malaysia, UEM Sunrise is renowned for its award-winning and upmarket high-rise residential, commercial and mixed-use developments largely in the affluent Mont Kiara international enclave, featuring projects such as 28 Mont Kiara, Arcoris Mont Kiara, Residensi22 Mont Kiara, Residensi Sefina Mont Kiara, Residensi Solaris Parq and many more. The Company is responsible for introducing the concept of creative retails in Solaris Dutamas, known as Publika. UEM Sunrise is also developing a 448-acre integrated township of Serene Heights in Bangi that offers life simple pleasures within a nature-inspired environment. This is in addition to Symphony Hills, an exclusive residential in Cyberjaya. Other projects in the Central Region by UEM Sunrise are located in the Kuala Lumpur City Centre with two joint-ventures in Shah Alam and Seremban. 6

7 Internationally, UEM Sunrise s presence extends into Vancouver, Canada via its 4.8-acre completed mixed-use development, Quintet at Minoru Boulevard City. In Melbourne, Australia, its 92-storey Aurora Melbourne Central is the tallest development in the Central Business District, while the inspiring 42-storey Conservatory located on Mackenzie Street boasts panoramic views over the historic UNESCO World Heritage-listed Royal Exhibition Building and Carlton Gardens. UEM Sunrise s latest launch, Mayfair, located on the prestigious St Kilda Road, heralds ultra-luxurious living with an emphasis on bespoke experiences. In Durban, South Africa, the Company has 30 acres of joint venture beachfront mix development land. UEM Sunrise is the appointed Project Manager, responsible for development and marketing management of the mega mixed-use developments of Marina One and DUO in Singapore, developed by M+S Pte. Ltd ( M+S ). M+S is jointly-owned by Khazanah and Temasek Holdings Pte Ltd. Please visit our website at Issued by UEM Sunrise Berhad For media enquiries, please contact: Zadil Hanief at zadil.zaidi@uemsunrise.uemnet.com / / or Mohamad Mawarid at mawarid@uemsunrise.uemnet.com / / or Josephine Veeran at josephine.veeran@uemsunrise.uemnet.com / /

UEM SUNRISE ANNOUNCES REVENUE OF RM541.8 MILLION FOR Q1

UEM SUNRISE ANNOUNCES REVENUE OF RM541.8 MILLION FOR Q1 2017 Revenue Jumps by 110% Compared to Q1 2016 Supported By Strong Property Development Activities KUALA LUMPUR, 17 May 2017 UEM Sunrise Berhad (