BUSINESS MODEL FOR ACCELERATED GROWTH & LONG-TERM SUSTAINABILITY Countries of focus: UK (London) & Australia (Sydney & Melbourne) Favourable policies / regulations for real estate development & investment Vibrant economies with proven demand both local and overseas Management team s past knowledge & experiences + network & connections Type of development: Niche quick turnaround projects with approvals in place / close to being obtained Primarily residential mixed use developments Sites with local & international appeal close to amenities, connectivity, population & job centres Leverage off strong customer following in Malaysia to build and grow EcoWorld brand internationally both directly & through strategic partnerships
CORPORATE STRUCTURE ECOWORLD INTERNATIONAL GROUP OF COMPANIES
ONGOING PROJECTS AS AT 31 JANUARY 2017 Projects London, U.K. London City Island Phase 2 Embassy Gardens Phase 2 Wardian London Sydney, Australia West Village, Parramatta Tenure Freehold - 5.82 acres Leasehold (1) - 0.13 acres Total land area (acres) 5.95 Freehold 5.71 Freehold 1.35 Freehold 1.18 Description 9 buildings comprising: 1,130 private residential units 15 units of affordable homes Commercial area 3 buildings comprising: 709 private residential units 163 units of affordable homes Commercial area 2 towers comprising: 626 private residential units 138 units of affordable homes Commercial area A 39-storey tower and a 6-storey wrap around podium comprising: 398 private residential units Commercial and retail space First launch date May 2015 Sep 2015 Sep 2015 Jun 2015 Estimated Construction period Oct 2015 1H 2019 Oct 2015-2H 2021 May 2016 1H 2020 1H 2017 1H 2020 Average price psf. of pre-sold units (3) GBP828 (RM4,564) GBP1,499 (RM8,263) GBP1,189 (RM6,554) AUD1,003 (RM3,247) Estimated GDV GBP691 mil (3) (RM3,763 mil) GBP933 mil (3) (RM5,076 mil) GBP566 mil (3) (RM3,082 mil) AUD315 mil (4) (RM1,042 mil) Total 14.19 RM12,963 mil
MILESTONES ACHIEVED & GOING FORWARD FY 2015 Site acquisitions completed; 3 in London & 1 in Sydney Successfully launched London City Island, Embassy Gardens and Wardian in UK; and West Village in Sydney FY 2016 Launched listing exercise IPO approved by Securities Commission in March GuocoLand and EWB signed on as strategic investors FY 2017 London City Island won the Best Place to Live award at the London Planning Awards Listing of EWI on Bursa Malaysia Target acquisition of new sites post-listing to expand project pipeline FY 2018 Profit recognition begins as handover commences in phases starting with LCI and Embassy Gardens
OUR IPO OFFERING
PROPOSED IPO TRANSACTION DETAILS Total Offering Size 1 IPO of up to 2,153,459,200 new ordinary shares in EWI comprising the following: Categories No. of IPO Shares % of enlarged share capital Institutional Offering Up to 449,459,200 18.7 Offering to Strategic Investor Allocation to Eco World Development Group Berhad ( EWB ) Allocation to GuocoLand Limited ( GuocoLand ) Up to 1,296,000,000 Up to 648,000,000 Up to 648,000,000 54.0 27.0 27.0 Retail Offering 408,000,000 17.0 Total 2,153,459,200 89.7 2 Bonus issue of up to 960,000,000 warrants in EWI ( Warrants ) on the basis of 2 Warrants for every 5 Shares held by the shareholders of EWI following the issuance of the IPO Shares Exercise Price & Exercise Period of Warrants Exercise price: 121.0% of the final IPO price Exercise period: 5 years from the listing date
PROPOSED IPO POST-IPO SHAREHOLDING STRUCTURE 64.3% of shares to be held by major shareholders 35.7% to be held by institutional investors & the public Timeline Tan Sri Liew Kee Sin EW Berhad (EWB) GuocoLand (GLL) Shareholders of EWB / Directors & employees of EWI & EWB Institutional Investors Malaysian Public Prospectus issuance 9 th Mar 2017 Listing on Bursa 3 rd Apr 2017 Retail Subscription Price: RM1.20 per share 10.3% 27.0% 27.0% 15.0% 18.7% 2.0% Ideal shareholding structure with highly experienced & strong major shareholders to support strong growth going forward
SIGNING CEREMONY 20 FEBRUARY 2017 GuocoLand Limited signed the Share Subscription Agreement and a Retail Underwriting Agreement was signed with the Joint Underwriters
LONDON MARKET OUTLOOK
THE LONDON ECONOMY ENCOURAGING GROWTH UK GDP rose 0.6% quarter-on-quarter in the three months to December 2016, sustaining consistent growth 16 quarters in a row. The yearly rate also went above expectations, growing at 2% despite the referendum vote. (Source: Office for National Statistics) IMF expects the UK to grow by 1.5% in 2017, compared with its previous forecast of 1.1%, on the back of a stronger than expected economic performance since Brexit Weakened Sterling became a key driver for exports from UK. FTSE 100 hit a fresh record high, benefiting from the increased overseas incomes (Source: Financial Times UK) The UK manufacturing sector s PMI index rose to 56.1 in December 2016 from 53.6 in November. UK s index is ahead of US, Canada, China, Australia and Switzerland while achieving the highest reading for 30 months (Source: The Guardian UK) Retailers finished 2016 strongly with sales in the final quarter up 5.6% on the same period in the year before (Source: Office for National Statistics) Corporation tax will fall to 19% from April 2017 and 17% from April 2020 - the lowest tax rate in the G20
POST BREXIT VOTE ENTRY OF FOREIGN INVESTORS Chinese developers developing 1.7b Royal Albert Docks in East London into an Asian business hub By the end of 2016, Chinese investors were on track to invest 4 billion in London property, beating the 2015 record by a third (Source: CBRE) Post Brexit investments by foreigners o Mitsui Fudosan JV to develop 1bn science hub next to the British Library at King s Cross o Softbank acquired ARM for a record 24 billion o GlaxoSmithKline to invest 275 million into its UK manufacturing sites o Nissan commits to create 7,000 jobs by building the next generation of Qashqai and X-Trail in the North-East
THE CHANGING LANDSCAPE RISE OF THE DIGITAL TECH SECTOR In August 2016, the UK was ranked top in digital share with 10% of overall GDP, beating the US and Sweden The UK s digital economy is expanding at a staggering 32% faster than the rest of the UK economy According to Boston Consulting Group research, digital tech is UK's 2 nd biggest economic contributor behind the property sector, overtaking manufacturing and retail Source: OECD / McKinsey 2016 report Tech take-up at 2.8m sf of office space in 2016 has overtaken financial services (2.5m sf) To achieve its aspiration of becoming the global go-to place for innovation, the UK Government is investing an extra 2 billion a year in R&D by 2020-21
INBOUND INVESTMENT HIGHLIGHTS INFLUX OF TECHNOLOGY, MEDIA & TELECOMMUNICATIONS GIANTS King s Cross Investing 1billion to develop its new 10-storey 650,000 sq ft London headquarters at King s Cross Tottenham Court Road Principal Place New campus will be the largest campus outside the US housing 1,400 staff, taking up all of the office space within the Battersea Power Station building Battersea Moving to a new 216,000 sq ft London headquarters in Feb 2017. UK is now home to its largest engineering base outside the US Confirmed their option space of 85,791 sq ft in Principal Place
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 LONDON PROPERTY MARKET HIGH DEMAND FOR RESIDENTIAL PROPERTY Prevailing low interest rate environment in the UK with good mortgage availability London s 2,000-year history, world class arts, culture, education hub & global tourist destination Demand and supply imbalance for housing has not changed Significant Supply Shortfall Interest Rate (%) 6.0 5.0 4.0 3.0 2.0 1.0 0.0 U.K. Central Bank Rate Current rate: 0.25% No. of Units Shortfall of 25,500 units Shortfall of 5,500 units 36,500 27,819 42,000 62,000 Source: IMR Report prepared by Savills 2014/15 2015 2016-2020 2019 Supply Forecast Average Annual Supply (1) GLA (2) Minimum Target of Homes p.a. (2015-2025) (1) GLA (2) Minimum Target incl. Backlog (i.e. historical shortfall of delivery) (1) Notes: (1) Estimated and forecasted by Savills Research (2) Greater London Authority
SYDNEY MARKET OUTLOOK
SYDNEY PROPERTY MARKET SUPPORTED BY POPULATION GROWTH & INVESTOR DEMAND The Sydney property market growth is expected to be supported by the future population growth, demand from immigrants and investors as well as the increase in demand resulting from the ageing population Australia s population expected to grow to over 35 million by 2050 while Sydney, accelerated by immigration through a targeted skilled migration programme Australia receives approximately 200,000 immigrants per year, of which Sydney receives 60,000. Immigrants to NSW generated demand of 230,000 homes over the last decade Ageing population at 15% in 2016 and is expected to grow to 17.6% by 2025. Families are downsizing homes for smaller, convenient and easy-to-maintain dwellings 40 16.0 12.0 Sydney Residential Dwellings Required by Immigrants Units ( 000) 30 20 10 0 1991 1999 2007 2015 Source: IMR Report prepared by Savills Australia Official Interest Rate (%) Interest rates are currently at a record low of 1.5%, boosting investor activity 8.0 4.0 Current rate: 1.5% Notes: (1) Australian Bureau of Statistics 0.0 Sep-90 Sep-95 Sep-00 Sep-05 Sep-10 Sep-15
EWI PROJECT UPDATES
ECOWORLD INTERNATIONAL CURRENT PROJECTS United Kingdom Australia London City Island East London (Zone 2/3) Embassy Gardens Nine Elms, London (Zone 1) Wardian London Canary Wharf, London (Zone 2) West Village Parramatta, West Sydney Estimated GDV: RM3,762.8 mil (GBP691.3 mil) Estimated GDV: RM5,076.1 mil (GBP932.5 mil) Estimated GDV: RM3,081.6 mil (GBP566.1 mil) Estimated GDV: RM1,042.3 mil (AUD314.8 mil)
EWI UK OUR LONDON PROJECTS Proposed Nine Elms Bridge 3 prime waterfront projects along the River Thames to cater to broad spectrum of purchasers at different price points
LONDON CITY ISLAND AN ARTS AND CULTURAL DESTINATION Location Located on the Leamouth Peninsula near Canary Wharf, London Description of Development Key Features 1,130 private residential units 15 units of affordable homes Commercial area (approx. 179,037 sq ft) New neighbourhood will include independent artisan restaurants, shops, and al fresco spaces used to show public art, design installations and host ad-hoc creative performances The English National Ballet and The London International Film School to move to London City Island Good link to public transport with a special-commissioned foot bridge, Red Bridge, linking the island to Canning Town Station served by both the Jubilee and DLR lines Crossrail Link, when completed provides 24-hour access from London City Island to London s West End, Heathrow Airport, Reading, Essex and Abbey Road Estimated Completion Blocks A & M: 1H 2018 Blocks B & C: 1H 2019 Blocks D & E: 1H2019
EMBASSY GARDENS ENGINEERING CRAFTSMANSHIP IN THE NEW DIPLOMATIC PRECINCT Location Description of Development Key Features Estimated Completion Located in the Vauxhall Nine Elms Battersea Area & next to the new Dutch and U.S. Embassies 709 private residential units 163 units of affordable homes Commercial area (approx. 29,429 sq ft) Unique rooftop features: o o A 25-metre floating transparent sky pool spanning across 2 blocks at 10 storeys above ground level The Orangerie roof garden with conservatory space A linear park providing a landscaped, green and car-free pathway connecting Battersea Power Station and Vauxhall Cross 1km from Vauxhall Station, providing access to London s West end within 7 minutes and Canary Wharf within 25 minutes Northern line extension to Nine Elms, target to complete by 2020 Block A04: 1H2018 Block A05: 1H2019 Block A03: 2H 2021 Embassy Gardens Phase 2 SKY POOL A03 A04 A05
WARDIAN LONDON AN OASIS OF NATURE AMIDST SKYSCRAPERS Location Description of Development Key Features Estimated Completion Located at the Isle of Dogs in the London Borough of Tower Hamlets, situated next to Canary Wharf 626 private residential units 138 units of affordable homes Commercial area (approx. 6,448 sq ft) Twin tower project comprising 50 and 55 storey towers in Canary Wharf Excellent accessibility: o Less than 5 minutes walk to Canary Wharf Station o Will benefit from Crossrail service from 2018 o Access to South Quay station (served by DLR), Canary Wharf station (served by London Underground), Waterloo, Stratford and Bond Street stations all served by the Jubilee Line Wardian cases being featured throughout the building Private sky-garden for each apartment, made possible with generously-sized balconies East Tower: 1H 2020 West Tower: 2H 2020
EWI AUSTRALIA OUR PROJECT IN PARRAMATTA, SYDNEY Superb location in Parramatta, Sydney s 2nd CBD, with a large and growing population base close to a major transport hub, retail & recreational amenities
WEST VILLAGE AN ALLURING BLEND OF LUXURY, STYLE AND CULTURE Location Description of Development Located to the southern periphery of the Parramatta Central Business District ( CBD ) Approximately 24-km west of Sydney s CBD 398 private residential units Commercial and retail space (approx. 11,937.2 sq ft) Key Features Communal sky observation terrace with views of the Sydney CBD and Blue Mountains Central ground floor courtyard, a lobby and a ground floor retail precinct with cafes and international cuisine options Includes an indoor nine to 18-hole virtual golf driving range and a fully sound-proofed private music room with a baby grand piano for private performances Well connected to Parramatta ferry wharf, train station and bus terminal, with only 300 metres from the Westfield shopping centre Estimated Completion 1H 2020
SALES UPDATES
SALES ACHIEVED AS AT 31 JAN 2017 PROJECTS EWI STAKE TOTAL GDV (1) (%) (MILLION) FY2015 SALES VALUE (MILLION) FY2016 Pre-Brexit Post-Brexit FY2017 Cumulative Sales as at 31 January 2017: Based on Contracts Exchanged: RM6.488 billion CUMULATIVE SALES VALUE LOCAL CURRENCY (MILLION) HOME CURRENCY (2) (MILLION) London City Island 75% 691 246 82 51 57 436 RM2,414 Embassy Gardens 75% 933 75 104 13 49 241 RM1,334 Wardian London 75% 566 115 150 41 39 345 RM1,909 Sub-total UK 2,190 436 336 105 441 145 1,022 RM5,657 West Village 100% AUD315 AUD252 AUD1 (3) (AUD4) (3) AUD249 RM831 GRAND TOTAL RM6,488 Notes: (1) Includes launched and unlaunched phases (2) Based on the exchange rate of GBP1.00 = RM5.5325 and AUD1.00 = RM3.3415 (3) Sales value for West Village is net of rescissions arising from the amended design under the new development consent that was submitted and approved by the City of Parramatta Council in November 2016
PURCHASER PROFILE GEOGRAPHICAL PROFILE OF BUYERS LONDON PROJECTS AUSTRALIA PROJECT Well-balanced & diversified buyer profile continues to enable EWI to record high sales post-brexit
CONCLUSION KEY ATTRIBUTES OF EWI 4 Property Projects Launched & Well-Received Backed By Established Property Developers Leveraging on the partnership with the Strategic Investors: Total Estimated GDV : RM12,963 million Total Sales Value : RM6,488 million Handover commences : 1H 2018 Leveraging on the shared ECOWORLD branding established by EWB Potential partnership with GuocoLand will enable EWI to extend its development footprint without straining its financial resources 1 2 3 4 5 EWI Is Ideally Positioned To Build On The Early Success Achieved On The Projects To Firmly Establish Us As A Property Developer Of Choice Qualified & Experienced Board & Management Team with a Proven Track Record Ability to Become a Preferred Acquirer for Prime Sites Understand the Industry and Customers Needs Ability to Quickly Bring to Market Innovative Projects Well-positioned to Benefit from Opportunities Presented by Property Markets in the U.K. & Australia
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