FINANCIAL RESULTS & GROUP UPDATE FOR THE YEAR ENDED 31 DECEMBER 2018 27 February 2019
Strengthened Position as No 1 Property Developer in Malaysia SALES Local 80% International 20% Eastern, 9, <1% International, 1,001, 20% Northern, 198, 4% Southern, 805, 16% Total Sales RM5,123 million Central, 3,110, 60% Sales for I&P Projects 2017 = RM859mil 2018 = RM1,250mil (46% ) 2
SALES EXCEED TARGET Stronger Contribution led by Central and Southern Regions 6,000 5,000 RM 4.920b RM 5.0b RM 5.123b 979 1,001 4,000 3,000 1,509-144 587 31 461 729 9 198 805 2,000 1,000 2,680 2,800 3,110 - Actual FY2017 Target FY2018 Actual FY2018 Central Southern Northern Eastern International 3
RM8.33b SALES FROM BATTERSEA PHASE 2 - COMMERCIAL Setia s Equity Stake Equals to RM3.33b 9,000 RM 8.45b (with Battersea Ph2) 8,000 7,000 3,332 6,000 5,000 4,000 3,000 RM 4.920b 1,509-144 587 RM 5.0b 979 31 461 729 1,001 9 198 805 2,000 1,000 2,680 2,800 3,111 - Actual FY2017 Target FY2018 Actual FY2018 Central Southern Northern Eastern International Battersea 4
5 YEARS FINANCIAL HIGHLIGHTS Commendable Revenue 8,000 Group Revenue (RM'million) 7,000 6,746 6,000 5,000 12 months revenue = RM5,606 million 4,957 4,520 4,000 3,870 3,594 3,000 2,000 1,000 - FY2014 FY2015 14 months FY2016 FY2017 FY2018 5
5 YEARS FINANCIAL HIGHLIGHTS Profit Before Tax (RM'million) Profit attributable to shareholders (RM'million) 1,600 1,400 1,200 1,000 800 600 400 200-722 1,426 12 months = 1,123 million FY2014 FY2015 14 months 1,185 1,271 991 FY2016 FY2017 FY2018 1,000 900 800 700 600 500 400 300 200 100-406 FY2014 918 12 months = 710 million FY2015 14 months 808 933 671 FY2016 FY2017 FY2018 Earnings Per Share (Sen) Dividend Per Share (Sen) 40.0 35.0 30.0 25.0 12 months = 27.7 35.7 29.8 26.8 25.0 20.0 15.0 23.0 20.0 15.5 20.0 15.0 16.3 14.8 10.0 9.7 8.55 10.0 5.0 5.0 - FY2014 FY2015 14 months FY2016 FY2017 FY2018 - FY2014 FY2015 14 months FY2016 FY2017 FY2018 6
SNAPSHOT OF FINANCIALS Profit & Loss (RM million) FY2017 FY2018 Revenue 4,520 3,594 Gross Profit 1,514 1,092 Gross Profit Margin (%) 33.5 30.4 Profit Before Tax 1,271 991 Profit Attributable to Shareholders 933 671 Basic Earnings per Share (RM sen) 26.8 14.8 Dividend per Share (RM sen) 15.5 8.55 Dividend Payout Ratio (%) 70.1* 70.1 * Including the pre-acquisition dividend payout by I&P Group during the year. Balance Sheet (RM million) FY2017 FY2018 Shareholders Funds 11,944 14,144 Total Equity 13,798 15,520 Total Assets 27,724 29,337 Total Cash 5,579 2,883 Total Borrowings 6,933 10,534 Net Gearing Ratio (times) 0.10 0.49 Net Assets per share (RM sen) 2.85 3.03 7
LAND BANKING IN FY2018 RESILIENT GROWTH
LAND BANKING Total of 87.9 Acres of New Land Banks were Acquired with Potential GDV Contribution of RM12.52 billion Land Banks Acquired in FY2018 Setia Safiro Cyberjaya, Selangor GDV of RM650m 57 acres Setia Federal Hill Setia Federal Hill Kuala Lumpur additional GDV of RM10b remaining 26 acres Setia Izumisano City Center Osaka, Japan GDV of RM1.87b 4.9 acres 9
KEY PROJECTS UPDATE TRANSFORMATION UNFOLDING
S P SETIA S STARTER HOMES SERIES WAS WELL RECEIVED Careya were sold out on the day it was launched CAREYA TYPE K RM585k onwards Adina - >90% sold during the launch weekend TYPE N2 TYPE N1 RM530k onwards 11
S P SETIA S STARTER HOMES SERIES WAS WELL RECEIVED Carisa - >90% sold during the launch weekend TYPE M RM593k onwards Bellina - >80% sold to-date Land Area: 20 x 70 12
KL ECO CITY, FIRST INTERGRATED TRANSIT-ORIENTED DEVELOPMENT World class integrated development of 25 acres with total GDV of RM7.0 billion, located in Kuala Lumpur. DEVELOPMENT BRIEF Development Type Mixed Development Effective Stake 100% Purchase Year 2011 Comm. Date 2011 Completion Date 2022 KL Eco City Masterplan Total Area Remaining Area Estimated GDV Remaining GDV 25 acres 4.2 acres RM7.0 bn RM3.26 bn 13 13
KL ECO CITY PROGRESS UPDATE Handed Over Retail Hub & Podium and Office Tower 2 with GDV totaling RM800 million at the beginning of 2018 P A R C E L D C B A 100% Sold Retail Podium (Recurring income portfolio of the Group) Recurring income portfolio of the Group 100% Sold 98% Sold 100% Sold 100% Sold 100% Sold 98% Sold 89% Sold MOSQUE STRATA OFFICE BOUTIQUE OFFICE 3 BOUTIQUE OFFICE 2 BOUTIQUE OFFICE 1 OFFICE TOWER 2 RETAIL HUB OFFICE TOWER 3 SERVICED RESIDENC ES RESIDEN TIAL TOWER 1 VP in Jun 16 VP in Jul 16 VP in Sep 16 VP in Sep 16 VP in Apr 17 VP in Mar 18 VP in Feb 18 VP in Oct 17 Target to complete in Oct 20 VP in June 17 RETAIL PODIUM VP in Feb 18 14
KL ECO CITY Development Brief 2018 December 15
KL ECO CITY Delivering Transit Oriented Development Pedestrian Link Bridge Physical Completion : End of March 2019 Open to Public: Target Q2 2019. 16
KL ECO CITY Delivering Transit Oriented Development The ceremony was officiated by the Transport Minister on 1 November 2018. 17
KL ECO CITY Office Tower 2 Area (sf) Percentage Occupied (Moved in) 50,810 9% Fit Out Works 108,340 20% Confirmed Tenant - - Head of Terms Exchanged 78,461 14% Advanced Negotiations 48,646 9% Available 258,104 47% Total 544,361 100% 18
KL ECO CITY Office Tower 3 Area (sf) Percentage Occupied (Moved in) 160,129 37% Fit Out Works Confirmed Tenant Head of Terms Exchanged Advanced Negotiations Available - - - - - - 28,892 7% 243,681 56% Total 432,702 100% 19
KL ECO CITY KLEC Mall 5-storey mall with approximately NLA of 250,000 sq ft retail space 70% confirmed tenants Soft opening in Sept 2018 Page 20 RFC Fitness 20
KL ECO CITY Amari Hotel Total 252 keys. Percentage of completion at 37%. Target VP in Aug 2020 Page 21 21
KL ECO CITY New Launches in FY2019 KL ECO CITY Aspire Tower (OT1) Aspire Tower (OT1) @ Parcel B Total Gross GDV Built-up Range Total units Price Range RM 1.075 bil 1,153 18,715 sf 253 units RM 1.6-32 mil Type Level Typical Sizes (sq. ft.) Executive Office 3A 9 1,153 1936 Signature Office 10 23 3,630 12,263 Premier Office 23A 39A 18,715 Wellness Club 2 18,347 Product Type Business Centre 3 15,528 Artist s Impression Sky Lounge 23 3,778 Sky Dining 41 & 42 3,410 5,081 Page 22 22 22
KL ECO CITY New Launches in FY2019 KL ECO CITY RT2 RT2 @ Parcel A Total Gross GDV Built-up Range Total units Price Range RM 1,056 mil 514 5,396 sf 739 units RM 0.8 6.0 mil Product Type Artist s Impression Page 23 23 23
SETIA FONTAINES Strategic Location LAND BANK BRIEF Land Size Land Type Development Plan Estimated GDV Tenure 1,675 acres Freehold Eco-themed mixed development township RM13.05 billion 20 years Strategically located as the focal point for the state of Penang, Setia Fontaines enjoys excellent connectivity to major towns like Sungai Petani to the north, Butterworth to the West, Bukit Mertajam to the south and Penang Island a short drive away via the Penang Bridge. The North South Expressway serves as the main thoroughfare with a northern exit from Bertam toll and southern exit 24 from Sungai Dua toll. 24
SETIA FONTAINES Strategic Location Potential of 3 rd Link Statement from Penang Chief Minister on Penang s third link on 20 February 2019 GEORGE TOWN, Feb 20 Penang hopes to obtain approval for projects under its Penang Transport Master Plan (PTMP) within the first half of the year, Penang Chief Minister Chow Kon Yeow announced today. We are on the verge of securing approval for our major transport plan, he said during a speech at a Chinese New Year gathering with the Real Estate and Housing Developers Association (Redha) this evening. The approval will spur the construction sector and provide opportunities for companies in the building and construction business, he said. He said the other mega project Penang is undertaking, the RM6.3 billion paired roads and undersea tunnel project, will also kick off this year. 25 25
SETIA FONTAINES Strategic Location Potential of 3 rd Link Statement from Penang Chief Minister on Penang s third link on 20 February 2019 George Town: Penang Chief Minister today said he is optimistic and confident that the federal government would approve the state s RM46 billion transport master plan (PTMP) in the first half of 2019. Chow also announced that the construction of a 5.7km bypass road connecting Air Itam to the Tun Dr Lim Chong Eu Expressway will begin on Aug 31. The road is part of a larger RM6.3 billion undersea tunnel and three roads project, undertaken by the Zenith consortium. This will definitely spur the building and construction industry in Penang and will uplift the state s economy as a whole, he said in his speech at the Real Estate and Housing Developers Association (Redha) Chinese New Year dinner at a hotel today. 26 26
SETIA FONTAINES New Lifestyle Development in mainland Penang MASTER PLAN Artist s Impression Page 27 27 27
SETIA FONTAINES Precinct 1 - Inspired by Multi Award-Winning Townships 1 Page 28 28 28
SETIA FONTAINES Precinct 6 Lush Greenery and Scenic Waterways Page 29 29 29 29
SETIA FONTAINES CITY CENTRE BUSINESS HUB ( CCBH ) SOFT LAUNCH IN DEC 2018 WAS WELL RECEIVED On Balloting Day, Sold RM 67 million (82 units) The launch of CCBH in Setia Fontaines Welcome Centre, Bandar Putra Bertam, Penang Shop lot SETIA FONTAINES Gross Selling Price Range : RM630,800 onwards GDV: RM89m 30
SETIA FONTAINES New Launches In FY2019 Precinct 1-Amansara South (Landed-Residential) Total Gross GDV Built-up Range Total units Price Range RM 137.40 mil 1,310-1,812 sf 392 units RM 330k to RM440k Precinct 6-South (Landed-Residential) Product Type Artist s Impression Total Gross GDV Built-up Range Total units Price Range RM 185.00 mil 1,332-2,943 sf 294 units RM 420k to RM1.1 mil Page 31 31 31
BATTERSEA POWER STATION, THE LARGEST REJUVENATION PROJECTS IN LONDON Most Iconic development in the heart of London spanning 41.7 acres with total GDV of GBP9.2 billion. Apple's New London Campus An aerial view of Battersea Power Station, London 32
BATTERSEA POWER STATION Master Plan Phase 1 Completed 7 1 6 1 2 6 6 5 5 4 Phase 2 Q4 2020 3 3 4 Phase 4a Phase 3A Q2 2021 NLE 2021 (latest) 33
BATTERSEA POWER STATION Cross Section of Commercial Property in Phase 2 Signed Heads of Terms on 18 Jan 2018 for sale of commercial property to PNB and EPF Residential Office Retail and F&B Event Space Signed SPA on 14 th December 2018 for 1.583 billion (RM8.33 billion) 34
BATTERSEA POWER STATION Focus to sell the remaining units of BPS. Expected completion of Ph2 in 4Q2020 and Ph3a in 2Q 2021. Phase 1 (Circus West) Launched January 2013 GDV 846 m Units 867 Sold Remaining 865 units 2 units Take Up Rate 99% Phase 2 (Power Station) Launched May 2014 GDV 779 m Units 255 Sold Remaining 236 units 19 units Take Up Rate 93% Phase 3A (Electric Boulevard) Launched October 2014 GDV 948 m Units 539 Sold Remaining 376 units 163 units Take Up Rate 70% Completed 4Q 2017 Expected Completion 4Q 2020 Expected Completion 2Q 2021 Expected Completion of the Northern Line Extension ( NLE ) by end of 2021. 35
ONGOING PROJECTS Wide Range of Product Offerings to Support Growth 45 ongoing projects 19 Setia Alam Central 11 Southern Setia Eco Cascadia 6 Northern Setia Pearl Island Setia City Setia Ecohill Setia Ecohill 2 Setia Eco Park Setia Tropika Setia Indah Setia Eco Gardens Bukit Indah Johor Setia Greens SPICE Setia Sky Vista Setia Sky Ville Setia Fontaines Setia Eco Templer Setia Eco Glades Setia Sky Seputeh Setia Seraya Residences TRIO by Setia KL Eco City Bandar Kinrara Temasya Glenmarie Setia Business Park II Taman Perling Taman Rinting Taman Pelangi Taman Pelangi Indah Taman Industri Jaya 1 8 Aeropod Eastern International Battersea Power Station Alam Impian Sapphire By The Gardens Bandar Baru Seri Petaling Uno, Melbourne Alam Sari Marque Residence Kota Bayuemas Eco Xuan Alam Damai Eco Lakes Alam Sutera Qinzhou Industrial Park Daintree Residence 36
FY2019 BUSINESS STRATEGIES AREAS OF FOCUS
FY2019 BUSINESS STRATEGIES Area of focus for the Group 1 2 3 4 Disposal of Clearing Unsold Stocks New Launches in Existing Projects New Projects Non- Strategic Lands/ Projects Attractive incentives scheme Right product size and pricing Focus Launch on Landed Properties Monetise noncore assets Dynamic marketing for the unsold units in Klang Valley, Pulau Pinang, Johor and Sabah through attractive incentives scheme to monetise the existing inventories level. The Group will focus on end users, target overseas buyers and provide the right pricing packages. To focus on new phases in existing established townships in Setia Alam and Setia Ecohill. To focus on optimization, rejuvenation and revitalization of Bandar Kinrara, Kota Bayuemas, Bandar Baru Seri Petaling, Alam Damai, Alam Sutera, Temasya Glenmarie and Alam Impian. To launch new projects in Setia Alaman, Setia Mayuri, Setia Safiro and Setia Tropicale to suit the current market demand. Disposal of nonstrategic land banks to monetise non-core assets which doesn't fit into our strategic plan and land banks which does not have the scale that Setia township is known for. 38
CLEARING OF UNSOLD STOCKS Completed Inventories reduced by 7% Y-o-Y RM Mil 1,900 Completion of Setia Sky 88 (Tower A) at RM225 million in Jul 2018 1,700 1,696 1,606 1,683 1,581 1,500 1,459 1,300 1,100 900 700 500 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Unsold Stock at Cost 39
CLEARING OF UNSOLD STOCKS Summary of Existing Completed Inventories THESE 5 COMPLETED PROJECTS ACCOUNT FOR 58% OF THE INVENTORIES Setia Sky88, Johor Setia Business Park, Johor Setia Eco-Cascadia, Johor Setia V-Residences, Penang Alam Impian, Shah Alam RM405mil RM149mil RM118mil RM151mil RM93mil STRATEGY: FOCUS ON END USERS TARGET OVERSEAS BUYERS RIGHT PRICING & FINANCING PACKAGES 40
PROJECTS LAUNCHED IN MALAYSIA FROM 2016-2018 Commendable take up rate of 64% 10,000 9,000 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0 81% 85% 6,345 64% 5,755 5,162 4,873 3,427 2,178 2016 2017 2018 Units Launched Units Sold Take up rate (Units) 100% 80% 60% 40% 20% 0% Year GDV Launched (billion) Units Launched Units Sold Units Take Up Rate* (%) 2016 RM4.60 6,345 5,162 81% (GDV = RM3.49bil) 2017 RM2.97 5,755 4,873 85% (GDV = RM2.31bil) 2018 RM2.75 3,427 2,178 64% (GDV = RM1.50bil) * take up rate as at 31 Dec 2018 41
PLANNED NEW LAUNCHES IN FY2019 Combined GDV of RM6.80bil Northern GDV RM 349m GDV Eastern RM 164m GDV Central RM 4,979m GDV Southern RM 1,169m Eco Lakes Eco Xuan GDV RM 139m Local Launches International Launches 98% 2% 42
LAUNCHES OF NEW PHASES IN EXISTING PROJECTS Target to launch 8,247 units with GDV of RM6.01 billion 4,500 4,193 4,000 3,500 3,000 2,500 2,000 1,500 1,000 500-1,169 349 164 139 Central Northern Southern Eastern International Local Launches International Launches 98% 2% 43
LAUNCHES OF NEW PROJECTS Target to Launch 1,128 units with GDV of RM786 million Focus launch on landed properties to suit market demand 44
TYPE & PRICE RANGE OF NEW LAUNCHES IN FY2019 BY GDV Local Launches by Type Local Launches by Price Range Commercial, 653, 10% RM250k, 149, 2% <RM251k - RM499k, 343, 5% Apartment / Condominium, 2,647, 40% Total GDV RM6,660 million Landed Residential, 3,211, 48% >RM1mil, 2,945, 44% Total GDV RM6,660 million RMM, 149, 2% <RM500k-RM999k, 3,223, 49% International Launches by Type Commercial, 25, 18% Apartment / Condominium, 73, 52% Total GDV RM139 million Landed Residential, 41, 30% International Launches by Price Range RM250k, 110, 79% Total GDV RM139 million <RM500k-RM999k, 29, 21% 45
DISPOSAL OF NON-STRATEGIC LAND BANKS 7 parcels of Non-Strategic Lands measuring 441.8 acres with GDV of RM1.18 billion Location Land size (acres) Estimated Market Value (RM mil) Central Region 23.1 175 Southern Region 377.3 474 Northern Region 41.4 530 Total 441.8 1,179 46
SALES TARGET IN FY2019 MEETING THE UNDERLYING DEMAND
SALES TARGET IN FY2019 Sales RM5.65b Double Digit Growth Eastern, 150, 3% International, 646, 11% SALES Local International 89% 11% Northern, 395, 7% Southern, 754, 13% Sales Target RM5.65 billion Central, 3,702, 66% GROWTH 10% 48
INNOVATIONS & INITIATIVES FOR THE GROUP IN 2019
INDUSTRIALISED BUILDING SYSTEM ( IBS ) Expanding the use of IBS for Landed Properties IBS is one of the construction method that can upgrade the quality and productivity of the construction by using better machineries, equipment, materials and extensive project planning. To extent the use of IBS to landed properties with : Standard Building Components Standard Bath Layout Standard Stairs Layout Standard Floor to Floor Height Layout Involvement during design & planning stage. To start in Setia Alam 2-storey terrace houses and to extent to Setia Ecohill. IBS offers a good reduction in cost compared to conventional system. Currently used in high rise construction To increase usage to landed residences 50
NEW TARGET GROUPS Expanding the reach to New Target Groups Senior Living: Care Centres Retirement Village Precinct Layout Elder Friendly Unit Layout Purpose-Build for AirBnb Dedicated Entrance & Facilities Within Development Flexi/Customised Units Choice of unit layout to suit lifestyle 51
SUMMARY Priorities In FY2019 To achieve the RM5.65 billion sales target and prepare beyond FY2019 with higher sales and profit Implementation and Execution of I&P land banks. Implementing New Initiatives & expanding to New Target Groups 52
UNBILLED SALES, LAND BANKS & GDV STRONG PIPELINE
UNBILLED SALES, LAND BANKS AND REMAINING GDV Unbilled Sales of RM12.32 billion is Supported by 9,516 acres of Remaining Land Banks and RM149.70 billion of Remaining GDV as at 31 December 2018 Eastern, 43, 1% Northern, 1,809, 19% International, 309, 3% Remaining Landbanks 9,516 acres Northern, 17.21, 12% Southern, 21.04, 14% Eastern, 1.94, 1% International, 16.68, 11% Remaining GDV RM149.7 billion Southern, 2,327, 24% Central, 5,028, 53% Central, 92.82, 62% Unbilled sales Local = RM4.24 billion Unbilled sales International = RM8.08 billion *Effective stake Remaining Land Banks and Remaining GDV * 54
AWARDS CLINCHED IN FY2018 Total of 22 Awards Clinched Crème de la crème 10-Time Winner 11-Time Winner 9-Time Winner World Gold Winner FIABCI World Prix d Excellence Awards 2018 S P Setia Corporate HQ -Sustainable Development The Edge Top Property Developers Awards 2018 No. 1 Best Employers in Malaysia 2018 FIABCI Malaysia Property Award 2018 SPICE Purpose-Built Category Malaysia Landscape Architecture Awards MLAA *2017 Developer & GLC Category - Landscape Development Award EcoHill Park, Setia EcoHill Excellence Award Setia SPICE, Penang Honour Award The Malaysian Construction Industry Excellence Awards (MCIEA) 2017 Seri Kasturi Apartment IBS Award Category 55
Q & A
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