1H 2017 Financial Results Analysts Briefing 17 November 2016
Agenda 1. FY16 Annual Results Review 2. FY17 STRATEGY ACE800 Financial Highlights 3. STP BUDGET 2A FY17 Update UK Properties Regional Updates 2
Financial Highlights 3
Group Results For 1H FY2017 Description Act 1HFY17 RM'000 Act 1HFY16 RM 000 Commentary Turnover 342,110 252,593 Profit Before Tax 17,124 51,019 Profit After Tax 7,657 47,680 Higher revenue contributed by Property Division. Mainly The Tamarind and Princes House UK. Property Division contributed RM51.8 million, an increase of RM43.7 million. However there was a one-time gain from the sale of piece of land in 1HFY16. Unrealised forex loss of RM15.2m in 1HFY17 compared to gain of RM47.6m in 1HFY16. EPS (sen) - Basic 0.56 3.89 Return on Equity 0.44% 2.90% Return on Assets 0.2% 1.38% 4
Financial Position as at 30 Sept 16 Description (RM 000) As at 31.12.2015 As at 31.03.2016 As at 30.06.2016 As at 30.09.2016 Gross Borrowing 1,497,460 1,518,339 1,510,440 1,542,383 Cash & Cash Equivalent 261,514 247,294 223,184 273,627 Net Borrowing 1,235,946 1,271,045 1,287,256 1,268,756 Shareholders' Fund 1,652,769 1,638,405 1,641,050 1,619,154 Net Gearing (Times) 0.75 0.78 0.78 0.78 Net Asset per share (RM) 1.32 1.31 1.31 1.29 The unutilised banking facilities in excess of RM2bn is adequate to support project development 5
Profit by Business Segments 1HFY17 Profit Before Tax 1HFY17 vs 1HFY16 RM 000 80000 60000 40000 20000 0-20000 -40000 1HFY17 1HFY16 Property Hospitality Investment & others E&O Property segment remains the main and core contributor to the Group. The increase in revenue was mainly due to higher revenue recognition from The Tamarind, Andorra Terraces and Andaman Condominiums. Princes House project in UK was completed in 1HFY17. The Hotel division within E&O Hospitality segment recorded an increase of RM3.7m revenue to RM49.9m for 1HFY17. With the completion of sale of The Delicious Group, the F&B division recorded a decrease of revenue of RM4.1m to RM5.7m for 1HFY17. The Investments & Others segment recorded an operating loss of RM28.2m for 1HFY17. This was mainly due to the exchange rate volatility of the Sterling Pound. In 1HFY16, this segment recorded a gain of RM47.6m as compared to a RM15.2m loss in 1HFY17. 6
Sales & Unbilled Sales Sales YTD Q2 FY17 RM 152 million Unbilled Sales as at 30 Sept 16 RM 980 million Johor 0% UK 11% Klang Valley 14% Johor 1% UK 6% Klang Valley 4% Penang 85% Penang 79% Unbilled sales RM980m will progressively be recognised over FY17 and FY18 7
STP 2A Update 8
STP2A Progress Update Dec 2014 Prequalification of Reclamation Contractors Jan 2015 Open Tender for Reclamati on works on STP 2 Feb 2015 Shortlisted Reclamation Contractors and finalise Financing for STP 2 and RCMTN ready Mar 2015 To receive and finalise tender bids by the Reclamation Contractors May 2015 Reclamation Tender Completed followed by interview Operationalising Seri Tanjung Pinang Phase 2 Jun 2015 Approval of commencement of works by Penang state authorities Jul 2015 Ex-gratia payment to affected fishermen Oct 2015 Appointment of STP2 reclamation contractors Dec 2015 Signing of STP2 syndicated banking facilities Feb 2016 Begin installing anti-climb secure fencing along Gurney Drive Mar 2016 Installation of silt curtains at sea May 2016 Completed installation of fencing along Gurney drive and silt curtains May 2016 Commenced dredging and reclamation works Jun 2018 Complete reclamation
STP2 Phase 2A Progress update Dredging & reclamation works commenced, in progress Reclamation Contractor Identified in Oct 2015 after rigorous tender process that included a prequalification of potential contractors Contract awarded to China Communications Construction Company (M) Sdn Bhd Movable & Permanent silt curtains 1,000m & 6,600m respectively (100% completed) Navigational Safety Blinker Lights All 106 units of blinker lights installed around the reclamation area Dredging & Reclamation Works Temporary Channel dredging works started 19 May 2016 Revetment works started 19 May 2016 10
Reclamation Works Sand Source: Offshore Perak
Reclamation Works Equipment: i. Sand Conveyor Barge : 2500 5000 m3 ii. Trailer Hopper Suction Dredger : Tong Tu - 20,000 m3 Tong Tu (Dec 2016) Sand Conveyor Barge
SOIL IMPROVEMENT - Installation of Prefabricated Vertical Drains (PVD) Ground treatment consists of installation of vertical drains and preloading the area with sand in order to accelerate the ground consolidation process. PVD CRAWLER RIGS
SOIL IMPROVEMENT - PVD Installation Method surcharging consolidating Mandrel inserted into clay layer Mandrel withdrawn leaving PVD anchored in clay layer PVD cut at ground level *PVD Length Max 20m or until refusal (SPT > 8) based on soil investigation
Coastal Protection Works COASTAL PROTECTION STRUCTURE Erosion of the fill material back to the sea by waves and currents is prevented through an appropriate coastal protection mechanisms e.g. hard structures such as rock revetments and seawalls. The STP2 project uses rock revetment as the coastal protection structure.
Coastal Protection Works Type 2A & 2B Primary Armour Rock: 1-3 Ton Type 2C Primary Armour Rock: 3-5 Ton
Project Progress DREDGING WORKS Backhoe KP VICTORIA (RHEA) SETIA MARINE PERDANA (CUTTER SUCTION DREDGER) 18
Project Progress PERIMETER BUND PHASE 2A2 (south view) Gurney Drive Phase 2A2 Approx. 650m CH0 CH650 19
Project Progress PERIMETER BUND PHASE 2A2 (east view) CH 0 Progress Approx 820m CH 0 CH 830 Phase 2A2 Approx. 570m CH 830 CH60 CH650 20
Project Progress PERIMETER BUND (PHASE 2A3: CH200-CH1600) CH 1600 Progress Approx 1400m CH 200 CH 1600 CH200 EXECUTIVE SUMMARY : PERIOD FROM 1st October until 13th October 2016 21
Project Progress PERIMETER BUND (PHASE 2A3) South View Progress Approx 500m (CH 2900 CH 3400) Approx. 950m Progress Approx; (sand230m) (Rock 380m) CH 2200 CH2588 Phase 2A3 CH1100 Progress Approx 300m (CH 2600 CH 2800 EXECUTIVE SUMMARY : PERIOD FROM 1st October until 13th October 2016 22
Sheet Pile Works Phase 2A3: CH3100 Driving of Sheet Pile 23
UK Properties 24
UK Properties Princes House Esca House Hammersmith Located at the heart of the arts and commercial hub Kingsway Completed with 4 units left for sale Cashflow more than sufficient to pay loan Situated in London s Zone One area of Bayswater Planned redevelopment will respect existing facade and redbrick structure of this early 20th century building Planning approval has been received Under expression of interest Located in West London s entertainment hub Picturesque view of the river and across London In the midst of preparing submission for new planning approval for the redevelopment of project 25
Regional Update 26
Penang Amaris Terraces By-The-Sea Amaris Terraces By-The-Sea Seri Tanjung Pinang 1 29 terrace houses GDV RM122 million Estimated Launch Nov 2016 Ariza Ariza Seafront Terrace Phase 2 Seri Tanjung Pinang 1 32 terrace houses GDV - RM85 million Estimated Launch Feb 2017 27
Iskandar Medini - Avira Avira Garden Terrace 1 commenced handing over in July 2016 Avira Garden Terraces 2 and 3 Wellness Sanctuary / Resort complemented with Medini Estate which includes launches of Terrace Houses, Serviced Apartments, Semi-D, Bungalows, Commercial and Condos Concentrating on selling Avira Garden Terraces 1 with the slowdown in Avira Garden Terraces 2 & 3 28
Klang Valley - Conlay Place Sited on a 1.44 acres site at the junction of Jalan Conlay and Jalan Kia Peng it is within walking distance to Pavilion and 300m to new MRT station Wellness themed service apartment designed in twin tower block of 31 storey and 51 storey on common podium, the 375 unit service apartment will have E&O service residence management in the 31 storey block with 131 apartments with dual key concept expanding to 241 keys. A mix of 1 bedroom, 2 bedroom and 2 +1 bedroom ranging from 870sf to 1300sf Expected launch in May 2017 29
Klang Valley Elmina Completed acquisition of acquisition for Elmina West 135 acres with GDV of RM 1.6 billion. Land handed over in Sept 2015 305 terrace houses in a gated community within our 135 acres RM1.3bn township. GDV RM320 million Elmina Estimated Launch Dec 2017 1 Idamansara 2 Seventy Damansara 3 St Mary Residences 4 The Mews 5 Dua Residency 6 Sri Se-Ekar 7 202 DC 8 Kampung Warisan 9 Conlay Place 10 Kemensah Heights 11 Elmina West 30
Conclusion Property Development division remains core Healthy unbilled sales of RM980 million as at 30 th September 2016, anchoring FY17 & FY18 revenue and profits Remains largely profitable with strong profit recognition We intend to capitalise on our inherent advantage of having a relatively high gross development margin and unleveraged inventory, which affords us the flexibility to price our products to suit the current target market STP 2A Reclamation progressing well Securing long term strategic partners to invest in a stake of STP2A is next key milestone International Completion of Princes House with 4 units remaining for sale 31
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