CIMB INVEST MALAYSIA CONFERENCE th of June 2014

Transcription

1 CIMB INVEST MALAYSIA CONFERENCE th of June 2014

2 A 129-Year-Old Brand Heritage Listed on the Main Board of Bursa Malaysia with a market capital of RM 3 bil. The E&O Group derives its name from the Eastern & Oriental Hotel, a Penang heritage landmark which dates back to 1885, affirming our style, values and beliefs

3 Eastern & Oriental Hotel Established by the famed Sarkies Brothers in 1885, whose architectural landmarks also include The Raffles Hotel in Singapore, The E&O Hotel is one of the most exclusive heritage 5-star hotels in Georgetown, Penang. 1,000 Places To See Before You Die New York Times #1 Bestseller by Patricia Schultz,

4 Extending its brand legacy to Property Development, the E&O Group is today a Luxury Lifestyle Property Development Group

5 Finding a Niche - Positioning E&O Property Development (Early Days) Plantation Developers Large land banks Conglomerate Developers Prime land in city centre and rejuvenated sub-prime KL areas Diversified and established conglomerates Commercial and residential developments Berjaya YTL Lion Group Sime UEP IOI Group Guthrie Malaysian Property Landscape Plantation land Township builders Established Infrastructure capabilities Sunway MK Land Sunrise SP Setia Glomac Suburban Developers Large pieces of land surrounding urban centers Residential, commercial, hotels Infrastructure Developers Premium & Niche Developers Core in infrastructure developments Self-contained township developments in rural suburb areas Affordable, quality housing Gamuda Road Builders IJM E&O Property Bandar Raya Tan & Tan Land banks in established neighborhoods, city centre Target high-end market Mainly gated, communities, emphasis on lifestyle and exclusivity

6 E&O Roadmap Invest in Brands

7 Investing in Brands E&O Hotel Acquiring the E&O Hotel in 1994, we became the custodians of a rich heritage brand and inherited a legacy of grace and refinement and appreciation of beauty that has set the direction for the E&O brand today.

8 Investing in Brands Lone Pine Hotel Lone Pine Hotel A colonial holiday retreat built in 1948; the only boutique hotel along the popular Batu Ferringhi coastline in Penang 8 Top 10 Boutique Hotels under USD$200 in the World Trip Advisor, 2011

9 E&O Roadmap Invest in Brands Brand Building

10 Brand Building Emphasis on Product Dua Residency (Large size units) Situated along Jalan Tun Razak in the CBD area and within the vicinity of KLCC Launch in April 2004, 2 towers consisting of 288 units with standard sizes starting from 2,200 sq ft to 6,000 sq ft. Sold out within a short period and at benchmark prices as well It sets the trend of large size units development in KL

11 Brand Building Emphasis on Product Seventy Damansara (Statement of Quality) Located next to the former official residence of the Prime Minister of Malaysia in Damansara Heights Seventy Damansara opened for sale in January 2006 as the most expensive detached home in Malaysia launched by a developer ranging from RM6 8 million per home. All units were launched near completion showcasing the quality of the development.

12 Brand Building Emphasis on Product Idamansara (Hallmark of a Premier Property Brand) Premier residential address in Damansara Heights, 82 units of semi-detached and 9 units of detached homes were launched in May 2006 at a price benchmark of RM3 million per semi-detached home. Idamansara was completed and handed over in mid-2007 and made instant millionaire of all purchasers Secondary market for a semidetached is currently ~RM5 million

13 E&O Roadmap Invest in Brands Brand Building Expansion

14 Expansion Venturing beyond KL As the E&O brand and products gained traction, the pressure to extend our landbanking beyond Kuala Lumpur intensified, leading to E&O s venture into Penang island with the Seri Tanjung Pinang project

15 E&O Roadmap Invest in Brands Brand Building Expansion Strategic Positioning

16 Strategic Positioning Standing next to Giants Joint Venture CIMB Mapletree & Al-Salam Bank of Bahrain E&OProp entered into a joint venture arrangement with a joint venture company of CMREF 1 Sdn Bhd and Al Salam Bank of Bahrain in September 2006 to develop 73 units of Villas By-The-Sea in Seri Tanjung Pinang. CMREF 1 Sdn Bhd is a private real estate fund jointly sponsored by CIMB Real Estate Sdn Bhd and Mapletree Dextra Pte Ltd of Singapore. The Chairman of Al Salam Bank (listed on Bahrain Stock Exchange) is H.E. Mohamed Ali Rashid Alabbar, who is also the Chairman of Emaar Properties the world s largest property development company, listed on the Dubai Financial Market. The shareholders and sponsors of Al Salam Bank, is similar to that of Emaar Properties. Emaar Properties was awarded the Best Overall Developer (Residential) in the UAE. Its major developments includes the US$20 billion Downtown Burj Khalifa development, King Abdullah Economic City (Saudi Arabia) as well as teaming up with Giorgio Armani to build and manage 10 Armani hotels and resorts across the world (Milan, London, Shanghai, New York, Tokyo)

17 Strategic Positioning Standing next to Giants Joint Venture Mitsui Fudosan E&O s partnership with Mitsui began in June 2011 with a marketing collaboration agreement signed with Mitsui Fudosan Realty Co Ltd to market E&O properties in Japan. In March 2013, the relationship progressed with E&O and Mitsui Fudosan Residential Co Ltd (Mitsui Residential) entering into a jointventure agreement to develop The Mews Serviced Residences in Kuala Lumpur. Joint Venture Khazanah Nasional Berhad & Temasek Holdings Pte Ltd In June 2011, E&O s subsidiary, Galaxy Prestige Sdn Bhd entered into a shareholders agreement with Pulau Indah Ventures Sdn Bhd (Pulau Indah) to undertake the development of an iconic wellness township in the Heritage Cluster in Medini Central of the Nusajaya flagship zone of Iskandar Malaysia. Pulau Indah is a 50/50 commercial joint venture between Teluk Rubiah Ventures Sdn Bhd, a wholly-owned subsidiary of Khazanah Nasional Berhad, and Aneto Investments Pte. Ltd, an indirect wholly-owned subsidiary of Temasek Holdings (Private) Limited.

18 E&O Roadmap Invest in Brands Brand Building Expansion Strategic Positioning Growth & Development

19 Growth & Development Taking the brand to the next level The Mews Focus on aspirational positioning needs may similar but aspirations are unique Avira

20 E&O Roadmap 1994 to 2014 Building a Brand that Lasts Acquisition of E&O Hotel 1994 Investing in a Brand leveraging on a rich heritage 70 Damansara Idamansara E&O Testimony of Hotel luxury living Restoration of E&O reopens Hotel Brand Building getting the product right Market Cap RM200mil 2005 STP 1 First Master Plan Dua township. Residency Luxury Living in KLCC 2006 Expansion extending landbanks beyond KL Market Cap RM3bil The Mews Mitsui Fudosan St Mary 2007 Breaking New Grounds 2009 Consolidation & Strategic Positioning building financial position and forging strategic partnerships Avira Khazanah/ Temasek Growth & Development Focusing on next growth phase ( ) 20

21 Business Plan : Growth & Development Branding Regional & International Exposure Strategic Partnerships Alliances & Collaborations Growth Engines Delivering Shareholder Value Talent, Purpose & Values Conclusion

22 Sustainable PAT for Next 3 years and beyond Building the Foundations Next Growth and Developments Future > 2016 Initial Target RM250m Achieved RM262.6m Cumulative PAT target for FY2014 FY2016 RM450m and stretch of RM500m Sustainable GDV and PAT per annum

23 Business Plan : Growth & Development Branding Regional & International Exposure Strategic Partnerships Alliances & Collaborations Growth Engines Delivering Shareholder Value Talent, Purpose & Values Conclusion

24 Branding - Regional & International Exposure Framework (Local Supply Global Demand) Rest of World China Japan Expatriate Community Local Supply Growth Engines Penang KL/Klang Valley UK Malaysian Diaspora Iskandar Singapore Indonesia Strong Regional & International Brand Global Demand outstrips Local Supply Growth Trajectory uninhibited by competition Sustainable profits & growth opportunities

25 Current Assessment : Building Foundations Business Plan : Growth & Development Branding Regional & International Exposure Strategic Partnerships Alliances & Collaborations Growth Engines Delivering Shareholder Value Talent, Purpose & Values Conclusion

26 Strategic Partnerships : Alliances & Collaborations Framework Regional Operationalizing Existing Partnerships Strategic alliances and collaboration with well renowned & international institutions Infusing International design and standards in regional partnerships Pursuing additional international partnerships and operational collaborations Marketing / Sales & Distribution Design / Development International Establishing new international partnerships Hospitality / Leisure collaborations Joint Investment

27 Current Assessment : Building Foundations Business Plan : Growth & Development Branding Regional & International Exposure Strategic Partnerships Alliances & Collaborations Growth Engines Delivering Shareholder Value Talent, Purpose & Values Conclusion

28 Growth Engine 1 : Penang (Operationalize STP 2) STP 1 STP 2 Almost completed with a series of launches : Andaman (final block) Marina Office / Service Apartments Super terraces 760 acres facing STP 1 Split into 2 islands, each having a different composition of residential and commercial element Strategy Launch the respective developments over the next 3 years as per schedule Strategy Operationalize STP 2 In the immediate term the focus is to complete the launches of the STP 1 developments. STP 2 will be critical and the emphasis for the next 3 years is to operationalize it.

29 STP 2 : The Next Catalyst Up to 12,000 new homes 8 new districts 88 acres of open space which includes a network of green spaces/squares, park grounds, public spaces and coastlines Over 12km of new island waterfront International marina and yacht club Leisure and cultural facilities including theatre and aquariums New shopping high streets A new commercial district of hotels and office space required by MNCs

30 The Masterplan : Key Components Total area : 760 acres Land use Stage A Stage B Acres Residential 39% 50% Commercial & mixed use Public spaces, infrastructure & utilities 34% 15% 27% 35%

31 Where we are right now April An Approval-in-Principle for the proposed project was obtained from the Penang State Government. 24 August A Public Dialogue was held to obtain public feedback on the detailed environmental impact assessment (DEIA) study 13 th Jan the detailed environmental impact assessment (DEIA) report was submitted to the Department of Environment (DOE) 10 th April The detailed environmental impact assessment (DEIA) report approval granted by Department of Environment. 21 st April 2014 Submitted STP 2 Land use master plan to Penang State Government..

32 Growth Engine 2 : Iskandar Medini To be launched over GDV of RM 3.5 billion Avira Collaboration between Khazanah and Temasek Wellness Sanctuary / Resort complemented with Medini Estate which includes launches of Terrace Houses, Serviced Apartments, Semi-D, Bungalows, Commercial and Condos Strategy Deliver on the Medini development and identify / develop complementary developments in the Iskandar region

33 Growth Engine 3 : Klang Valley GDV of RM 3 billion KL /Klang Valley The Mews Jalan Conlay Elmina West Strategy Strategic Partnership with Landowners E&O will focus on 2-3 additional developments to sustain our next phase of growth.

34 Growth Engine 4 : International Launched : February 2014 GDV of RM 300 million Princes House, London Within close proximity to the internationally renowned Covent Garden Market, the Royal Opera House and some famous hotels and theatres such as The Waldorf, The Savoy and within the vicinity of top London s renowned colleges such as London School of Economics, Kings College and University College London Strategy Initial phase is to test the acceptance of our customers base of E&O brand overseas & followed by development of a platform to efficiently implement multi-projects

35 Each of the growth engines will contribute to the top and bottom line in the next 3 years and beyond Next 3 year Business Plan ( ) Beyond Stretch : GDV of RM4.0 b Target : GDV of RM3.0 b Stretch : GDV of RM1.5 b Target : GDV of RM1.0 b FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 Growth and Development Building the base. Contribution by growth engine not necessarily fairly distributed yet Delivering sustainable profits Each of the Growth engines should be contributing fairly across the board and not over reliant on 1 engine only

36 Business Plan : Growth & Development Branding Regional & International Exposure Strategic Partnerships Alliances & Collaborations Growth Engines Delivering Shareholder Value Talent, Purpose & Values Conclusion

37 Delivering Shareholders Value Building the Foundations Next Growth and Developments Future > 2016 The investments made in the Business Plan will yield sustainable profits beyond 2016 This will translate into greater shareholder value Market capitalisation has grown from RM200 million to close to RM3 billion (2004 to 2014)

38 Business Plan : Growth & Development Branding Regional & International Exposure Strategic Partnerships Alliances & Collaborations Growth Engines Delivering Shareholder Value Talent, Purpose & Values Conclusion

39 Talent Attract, Retain & Motivate Rationale People are core in driving the sustainable growth and development of E&O Developing and nurturing talent must be embedded throughout the business backed by a strong employee engagement programme Today, E&O property development division employs 230 employees Loyalty, Commitment, Dedication E&O s core senior management team have been with the Group for close to a decade, some longer.

40 Purpose & Values Our Purpose E&O designs and builds properties that cater to aspirational lifestyle needs of discerning individuals Our Values We do things differently, always for the better, with sincerity, integrity and passion

41 Current Assessment : Building Foundations Business Plan : Growth & Development Branding Regional & International Exposure Strategic Partnerships Alliances & Collaborations Growth Engines Delivering Shareholder Value Talent, Purpose & Values Conclusion

42 Conclusion: Business Plan Built to Last Building the Foundations Next Growth and Developments Future > Growth Engines 3 Strategic Thrusts Penang Iskandar KL/Klang Valley International Regional / International Exposure Strategic Partnerships & Collaborations A.R.M Talent E&O Corporate Values Doing things differently, always for the better Sincerity Integrity Passion

43 Thank You