SIME DARBY PROPERTY BERHAD Credit Suisse 9 th Annual ASEAN Conference

Transcription

1 SIME DARBY PROPERTY BERHAD Credit Suisse 9 th Annual ASEAN Conference 11 & 12 January

2 Cautionary Note This presentation does not constitute and is not an offer to sell or the solicitation of an offer to buy securities of any company referred to in this presentation in the United States or elsewhere. The companies referred to herein have not registered and do not intend to register any securities under the US Securities Act of 1933, as amended (the Securities Act ), and any securities may not be offered or sold in the United States absent registration under the Securities Act or an exemption from registration under the Securities Act. By attending the presentation you will be deemed to represent, warrant and agree that to the extent that you purchase any securities in any of the companies referred to in the presentation, you either (i) are a "qualified institutional buyer" within the meaning of Rule 144A under the Securities Act, or (ii) you will do so in an "offshore transaction" within the meaning of Regulation S under the Securities Act. This presentation may contain forward-looking statements by Sime Darby Berhad that reflect management s current expectations, beliefs, intentions or strategies regarding the future and assumptions in light of currently available information. These statements are based on various assumptions and made subject to a number of risks, uncertainties and contingencies. Actual results, performance or achievements may differ materially and significantly from those discussed in the forwardlooking statements. Such statements are not and should not be construed as a representation, warranty or undertaking as to the future performance or achievements of Sime Darby Berhad and Sime Darby Berhad assumes no obligation or responsibility to update any such statements. No representation or warranty (either express or implied) is given by or on behalf of Sime Darby Berhad or its related corporations (including without limitation, their respective shareholders, directors, officers, employees, agents, partners, associates and advisers) (collectively, the "Parties") as to the quality, accuracy, reliability or completeness of the information contained in this presentation (collectively, the "Information"), or that reasonable care has been taken in compiling or preparing the Information. None of the Parties shall be liable or responsible for any budget, forecast or forward-looking statements or other projections of any nature or any opinion which may have been expressed or otherwise contained or referred to in the Information. The Information is and shall remain the exclusive property of Sime Darby Berhad and nothing herein shall give, or shall be construed as giving, to any recipient(s) or party any right, title, ownership, interest, license or any other right whatsoever in or to the Information herein. The recipient(s) acknowledges and agrees that this presentation and the Information are confidential and shall be held in complete confidence by the recipient(s). This presentation is for the purposes of information only and no part of this presentation is intended to be or shall be construed as an offer, recommendation or invitation to subscribe for or purchase, or otherwise making available, any securities in Sime Darby Berhad. 2

3 Presentation Outline 1. Overview 2. Strategies 3. Transformation Focus 4. Financial Performance 5. Appendices 3

4 1. Overview 2. Strategies 3. Transformation Focus 4. Financial Performance 5. Appendices 4

5 Our History Who We Are Sime UEP was established through the acquisition of a large stake in United Estates Projects Bhd, the developer of Subang Jaya township (2,241 acres) Completion of the Guthrie Corridor Expressway (25 km) which connect Shah Alam to Rawang Sime Darby Property, SP Setia and EPF acquired the iconic Battersea Power Station for GBP400mn (42 acres) Concession agreements with the government of Malaysia and four higher learning institutions were signed to develop Pagoh Education Hub 30 Nov Negara Properties, the subsidiary of Golden Hope Plantations launched its first township Taman Melawati (880 acres) 1995 Guthrie Property Development Holding Bhd, a subsidiary of Kumpulan Guthrie Berhad launched its first township Bukit Jelutong (2,205 acres) 2007 Sime Darby Property Division was established following the historical merger of Kumpulan Sime Darby Bhd, Kumpulan Guthrie Bhd and Golden Hope Plantations Bhd 2013 City of Elmina was launched (5,000 acres) Sime Darby Property Berhad, an independent listed entity on Bursa Malaysia 5

6 Our Footprint Townships Integrated development Landbank HSR Hubs Georgetown 20,763 acres of the remaining developable land bank which includes: Pulau Tikus Lagong Kota Elmina MALAYSIA Ara Damansara SJCC SJ7 ALYA Taman Melawati KL East 12,026 acres of the remaining developable land bank located within our existing 23 active townships, integrated and niche developments City of Elmina Denai Alam Bukit Jelutong Bandar Bukit Raja 1, 2 & 3 Kuala Lumpur 3,196 acres of land located within the Malaysia Vision Valley (MVV) region Putra Heights Serenia City Planters Haven Hamilton Labuan Bileh Nilai Impian 1 & 2 Bandar Ainsdale Nilai Utama Bandar Universiti Pagoh Negeri Sembilan Melaka Saujana Impian Johor Bahru SINGAPORE Total estimated GDV of RM100.4 bn for the remaining developable land bank Additional 20,599 acres of land via MVV and Land Options Agreements (5+3 years) 1,599 employees 6

7 An Integrated Property Developer What We Do Property Development Property Investment Hospitality & Leisure Domestic: Klang Valley, Negeri Sembilan and Johor International: London, United Kingdom, development of Battersea Power Station Manages ~2mn sq. ft. of net commercial space in Malaysia, S pore and United Kingdom Retail Mall: Melawati Mall Domestic: Sime Darby Convention Centre, TPC KL, Impian Golf & Country Club International: Darby Park Executive Suites, S pore & Darby Park Serviced Residences, Vietnam Breakdown of Revenue Breakdown of Operating Profit RM3.25bn RM2.60bn RM2.56bn RM642mn RM455mn RM353mn 5% 6% 5% 4% 3% 2% 4% 92% 90% 93% FY2015 FY2016 FY2017-1% 106% 114% 113% -18% -4% -5% FY2015 FY2016 FY2017-9% 7

8 Shareholding Structure as at 10 Jan % RM1.64 Share Price Share Price Movement (RM) Foreign Shareholdings 14.7% As at 10 Jan % 4.8% 10.7% RM11.09bn Market Capitalisation Domestic Shareholdings and the public 6,800,839 Number of Ordinary Shares (000 ) Source: Tricor 8

9 Strong and Dynamic Board of Directors Board members have held prominent positions and directorships in public listed companies involving the property sector as well as the banking and finance sectors and in governmental, regulatory and professional bodies Tan Sri Abdul Wahid Omar Non-Independent Non- Executive Chairman Dato' Sri Amrin Awaluddin Managing Director Dato' Rohana Tan Sri Mahmood Senior Independent Non-Executive Director Datuk Tong Poh Keow Executive Director Tengku Datuk Seri Ahmad Shah Alhaj ibni Almarhum Sultan Salahuddin Abdul Azjz Shah Alhaj Independent Non- Executive Director Dato' Johan Ariffin Independent Non- Executive Director Dato' Jaganath Derek Steven Sabapathy Independent Non- Executive Director Datuk Dr Mohd Daud Bakar Non-Independent Non- Executive Director Dato' Seri Ahmad Johan Mohammad Raslan Independent Non- Executive Director Datin Norazah Mohamed Razali Independent Non- Executive Director 9

10 Qualified and Experienced Management Team Strong management team with relevant experience and a proven track record in the real estate industry Dato' Sri Amrin Awaluddin Managing Director Datuk Tong Poh Keow Group Chief Financial Officer Fairuz Radi Chief Transformation Officer & Head, Managing Director s Office Dato Wan Hashimi Albakri Chief Operating Officer Township Development TBA Chief Operating Officer Integrated (w.e.f. 16 Jan 18) TBA Chief Marketing & Sales Officer (w.e.f. 1 Mar 18) Choo Suit Mae Group General Counsel TBA Chief Human Resources Officer Tang Ai Leen Chief Risk and Compliance Officer TBA Chief Group Corporate Assurance Officer (w.e.f. 1 Mar 18) 10

11 Financial Highlights as at 30 June 2017 RM2.6bn Revenue RM818mn PBIT 32% PBIT Margin RM608mn PATAMI RM11bn Invested Cap 7% ROIC RM1.77bn Unbilled Sales RM1.92bn Gross Sales Value 55% Avg. Take Up Rate RM6.3bn Shareholders Fund Pro forma shareholders fund postlisting: RM9.6bn RM14.6bn Total Assets 18% Gross Debt/Equity Ratio Pro forma D/E Ratio post-listing: 12% 11

12 Financial Highlights as at 30 September 2017 RM464mn Revenue RM101mn Operating Profit 24% Operating Profit Margin RM420mn PBIT RM421mn PATAMI RM1.78bn Unbilled Sales RM528mn Gross Sales Value 667 Units Sold RM6.9bn Shareholders Fund RM14.6bn Total Assets 15% Gross Debt/Equity Ratio Note: 1QFY18 PBIT included the gain on disposal of Malaysia Land Development Company of RM41mn and the gain on disposal of 40% equity stake in Seriemas Development Sdn Bhd of RM278mn total RM319mn 12

13 Sustainability Strategic Framework Sustainability Purpose: Contribute to a Better Society, Minimise Environmental Harm and Deliver Sustainable Development Ascribed to the United Nations Sustainable Development Goals (SDGs) City of Elmina Townships For The Future Earmarked as a model Wellness & Liveability Township Elmina Community Park 13

14 1. Overview 2. Strategies 3. Transformation Focus 4. Financial Performance 5. Appendices 14

15 Key Investment Highlights #1 Largest developable land bank in Malaysia 20,763 acres with remaining estimated GDV of RM100.4bn A competitive advantage to monetize non-strategic land Sustainable earnings contribution for the next years #2 Strategic locations with full spectrum of products Well positioned along the Guthrie Corridor Expressway and West Coast Expressway Strategically located in Negeri Sembilan and Johor to benefit from Malaysia Vision Valley and High Speed Rail projects #3 Recognised brand with established track record Good track record of over 40 years in property development with success in transforming former estate lands into major townships Received awards over the years for excellence and distinctions 15

16 Strategies & Growth Plans Township Development Product Diversification Land bank management Strategic Partnerships Recurring Income Leverage on the sizeable land bank located in strategic economic growth areas Develop and offer a variety of industrial developments such as Built-To-Suit (BTS) products Prioritise the development located along the Guthrie Corridor Expressway Proactively secure partnerships via JV or opportunistic M&A Grow recurring income to 10% of the PBIT by FY2022 Increase exposure in integrated & urban developments Expand the development of integrated TOD and TAD projects Assess best and highest use for each land parcel and dispose nonstrategic lands Capture a larger share of the property development market in Malaysia Retain strategic assets and dispose nonperforming assets Increase and accelerate current GDV of ~RM100bn Strategic and opportunistic land acquisitions Establish a core and experienced team 16

17 Leverage on our prime locations in Klang Valley Gamuda Garden Lagong 1,552 acres 10,297 acres of land bank along Guthrie Corridor Expressway with remaining GDV of more than RM20 billion Elmina West 2,661 acres Kota Elmina 1,540 acres Good connectivity: GCE, DASH, NKVE, LATAR and NSE Mass Rail Transit-1 (MRT 1) and Keretapi Tanah Melayu Line (KTM) Forest Reserve Denai Alam & Bukit Subang 1,250 acres Elmina East 1,089 acres RRI DASH Prioritise these developments by offering affordable and saleable products Setia Alam Setia ECO Park Bdr. Bukit Raja 1,2 and 3 4,333 acres Bukit Jelutong 2,205 acres Ara Damansara 693 acres Subang Jaya 2,241 acres Legend Ongoing developments Future developments Guthrie Corridor Expressway Damansara-Shah Alam Elevated Expressway (DASH) New Klang Valley Expressway (NKVE) KL-Kuala Selangor Expressway (LATAR) North-South Expressway (NSE) 17

18 Increase and Accelerate Current GDV of RM100bn ~12k acres of remaining developable land bank with a remaining GDV of RM85.9bn Township/Development Name Year Commenced Total Area (acres) Remaining Developable Area (acres) Remaining GDV (RM bil) Remaining Development Period (years) Niche / Integrated ALYA, Kuala Lumpur Chemara Hills, Seremban USJ Heights, Subang Jaya SJ 7, Subang Jaya SJCC, Subang Jaya KL East Township City of Elmina: Elmina West, Shah Alam ,661 2, City of Elmina: Elmina East, Shah Alam , City of Elmina: Denai Alam & Bukit Subang , Bandar Bukit Raja 2 & 3, Klang ,820 2, Bandar Bukit Raja 1, Klang , Serenia City, Dengkil, Sepang ,370 1, Putra Heights, Subang Jaya , Ara Damansara, Petaling Jaya Bukit Jelutong, Shah Alam , Saujana Impian, Kajang Taman Melawati, Ulu Klang Nilai Impian 2, Nilai Nilai Impian 1, Nilai , Bandar Ainsdale, Seremban Planters' Haven, Nilai n/a¹ n/a¹ Bandar Universiti Pagoh, Muar ,099 2, Taman Pasir Putih, Pasir Gudang TOTAL 25,664 12, Future development 8, ² 27 ¹ Remaining developable area includes 6 parcels of homestead lots and 60 vacant homestead plots ² This GDV figure is preliminary and currently only available for 4 out of 26 future developments 18

19 Well Positioned To Benefit From Malaysia Vision Valley (MVV) Elite Highway SELANGOR Proposed High Speed Rail Station To Bangi To Kajang LEKAS Highway Parcel A: 3,196 acres A new economic corridor and a Premier Urban Transformation Region under the National Transformation Agenda MVV Total Area: 379,086 acres Sime Darby Property s Interest: Owned: Parcel A of 3,196 acres MVV Option Agreements: Additional 8,793 acres (currently held by SD Berhad) KLIA Additional 8,793 acres PORT DICKSON SEREMBAN Bandar Ainsdale North-South Expressway To Johor PARCEL A : HIGH TECHNOLOGY AND INDUSTRIAL PARK A critical investment corridor for Negeri Sembilan Limited land for industrial developments in Nilai & Senawang STRAITS OF MALACCA Increased foreign and local demand for high technology hub Legend Sime Darby Property s land Sime Darby Berhad s land Sime Darby Plantation s land MALACCA Continuation of Putrajaya, Cyberjaya and Kuala Lumpur International Airport development area Leverage on existing developed infrastructure & proposed HSR project 19

20 Option to Increase Land Bank Totaling ~20k acres Land Options Agreement with Sime Darby Plantation 1 1, a c r e s SD Plantation entered into 9 call option agreements with SD Property pursuant to which SD Property has options to purchase these lands at future market value Penang Kedah Byram estate: 864 acres 2 0, a c r e s Bukit Selarong estate: 148 acres MVV Options Agreement with Sime Darby Berhad 8, a c r e s Kumpulan Sime Darby and Sime Darby Property entered into several call option agreements for lands within the MVV development region Options Validity: 5 years, extendable by 3 years Options Validity: 5 years, extendable by 3 years Sungai Kapar estate: 993 acres West Estate, Carey Island: 2,000 acres Sepang estate: 2,000 acres Lothian Estate: 485 acres Selangor Negeri Sembilan Labu, New Labu (Kirby), New Labu (Main) and Hamilton estates Sua Betong estates Ainsdale estate: 268 acres Kulai, Johor Kulai A estate: 1,862 acres Kulai B estate: 3,186 acres 20

21 Unlock Value from Battersea Project with Remaining GDV of 8.3bn Battersea Power Station (BPS) : Established in Jul 12 JOINT VENTURE 4 0 : 4 0 : 2 0 Sime Darby Property: SP Setia : EPF Years to project completion Site Area 42 acres Estimated GDV ~ 9bn The largest office tenant at Battersea, occupying about 500,000 sq. ft. of space (approx. 40% of the total office space) from 2021 Phase 2: Take-up rate of 90%, representing sales value of 577mn Target completion in Q Phase 3: Take-up rate of 71%, equivalent to sales value of 582mn Target completion in 1H 2021 Phase 1 Circus West RM87mn Recognition of profit in 1QFY18 upon handover of 431 units (FY2017 Profit recognition of RM140mn (338 units) Total 769 units of Phase 1 have been handed over to-date. Full completion of the handover in Dec 17 Tunneling work completed for Northern Line Extension as boring machines break through at Kennington 21

22 Increase Product Diversification Township & Integrated Development Residential Strata Development TOD and TAD Concepts Premium and Branded Lifestyle Industrial Segment Comprehensive flagship township along the Guthrie Corridor Expressway An integrated development within Ara Damansara Freehold service residence with 6 acres of skypark recreational area The Véo & Quarza Residences, featuring modern contemporary living Served by the Putra Heights Interchange, USJ Interchange, NKVE, LDP, ELITE, KESAS & SKVE Highways Lifestyle destination with a modern multimodal transportation system Comprises of 8 development parcels spanning 61-acres covering residential, commercial & retail components Encompasses one of Malaysia s premier golf and country clubs, TPC KL Offers Built-To-Suit (BTS) facilities to capitalise on the township's connectivity to major highways and ports A variety of industrial projects to serve as an industrial and high technology hub 22

23 Three-Pronged Approach to Active Land Bank Management D E V E L O P S T R A T E G I C P A R T N E R S H I P S M O N E T I S A T I O N Prioritise and focus on growth of high performing townships Drive cost reduction initiatives to enhance profitability Earmark potential developers to co-develop ongoing and greenfield townships as a mean to: Accelerate development of our sizeable land bank Leverage on partners expertise and resources Strategic monetisation of parcels of land outside key development focus in order to: Enhance the land value and expedite the development via other developers Speedy realisation of land value To be disposed within 1-2 years: 1,614 acres - Kedah 37 acres Sabah A r e a s : Townships: Elmina West, Elmina East, Serenia City, Bandar Bukit Raja & Bandar Universiti Pagoh Integrated: Subang Jaya City Centre (SJCC) and KL East O n g o i n g P r o j e c t s : Bandar Bukit Raja Industrial Park, establishment of the joint venture currently in progress P a s t T r a n s a c t i o n s : 2015: Elmina land (135 acres) to E&O 2016: Serenia City land (346 acres) to Sunsuria Semenyih land (238 acres) 2017: Semenyih land (803 acres) to I&P 2018: Disposal of Malaysia Land Development Company & 40% stake in Seriemas Development 23

24 Strategic Partnerships Leverage on the expertise and competencies of key strategic partners such as Malaysia Vision Valley Sixth Economic Corridor in Malaysia Melawati Mall The first major shopping mall in Taman Melawati Radia Bukit Jelutong Mixed development at the heart of Bukit Jelutong PJ Midtown Integrated project at the epicenter of Petaling Jaya Battersea Power Station (BPS) Project A major regeneration project in Nine Elms 24

25 Grow Recurring Income to 10% of Total PBIT by 2022 #1 Build-To-Suit (BTS) & Lease Industrial Assets #2 Divest noncore hospitality assets I m m e d i a t e F o c u s : Joint venture with Mitsui International to develop a high technology BTS industrial hub at Bandar Bukit Raja 2 & 3 (53 acres) Review partnership to transform Serenia City into a thriving business and industrial park Review profitability of existing portfolio and divest non-performing assets in Australia, Singapore and Vietnam Historical Disposals: FY2015: Subang Avenue FY2016: 2 assets in S pore & a hotel in Malacca FY2017: 1 asset in S pore YTD FY2018: 1 asset in Australia T a r g e t s ( n e x t 3-5 Y e a r s ) Sizeable Sizeable recurring recurring income income from from the industrial the industrial segment segment Stable earnings and cash flows #3 Enhance value via creation of existing assets Optimise value creation of Melawati Mall Target completion of KL East Gallery by mid-2018 Increase operational focus to grow the commercial and office segments Such as Oasis Damansara and SJCC Establish a portfolio of high value retail & commercial assets 25

26 1. Overview 2. Strategies 3. Transformation Focus 4. Financial Performance 5. Appendices 26

27 Transformation for Value Creation 3 focus areas for quick wins during FY18 Focus Area Transformation initiatives Aspirational Targets Increase sales Sales & marketing Strengthen market intelligence and consumer insight platform Overhaul digital & sales gallery experience Leverage on strategic partnership Increase Unbilled Sales to RM2bn RM 2.5bn Improve speed to market End-to-end cycle time Enhance consultant and contractor selection process Integrate tender process with authority approval Enhance project timeline tracking system Exploring optimal business models Shorten development time: Landed: from average 39 months to 30 months Highrise: from average 63 months to 45 months Procurement Strategic sourcing of key materials Tender strategy enhancement Strategic collaboration with business partners 4-7% cost reduction for 8 targeted projects (est. procurement spend of RM550m) Strategic cost management Design to value Reduce main infrastructure cost Optimise building cost by refining structural and M&E design 5-10% cost reduction through value engineering (est. construction cost of RM1.1bn) General & Admin. Rationalise and control of staff related costs Optimise township maintenance expenditure 10-20% reduction in targeted overhead expenditure (est. cost of RM300m) 27

28 Achievements To date, 23 initiatives have been implemented across the 3 focus areas Achievements Key Highlights 23 initiatives implemented Increase sales Improve speed to market Revamped SJCC Lot 15 sales gallery Strategic partnerships on end-financing packages Enhanced digital marketing and digitized sales funnel tracking Enhanced end-to-end development process by overlapping tender process with authority approval (potential time saving of 4-6 months) Appointed authority liaison to expedite approval (potential time saving of 3-5 months) Streamlined internal approval process Identified 12 key materials for strategic sourcing Strategic earth transfer between townships Introduced incentivised consultant fee scheme RM69mn cost savings potential Strategic cost management 15% reduction in structure costs of a high rise development through value engineering Average of 13% savings in Main Infra contracts awarded to date Optimised staff related costs Reduced township maintenance costs and closure of tail end townships 28

29 1. Overview 2. Strategies 3. Transformation Focus 4. Financial Performance 5. Appendices 29

30 Financial Highlights - First Quarter FY2018 RM mn 1Q FY2018 C o n t i n u i n g O p e r a t i o n s Revenue Segment Results RM464mn ( 4% YoY) 1QFY17: RM444mn RM101mn ( 87% YoY) 1QFY17: RM54mn Property Development Property Investment Leisure and Hospitality RM115mn ( 191% YoY) 1QFY17: RM40mn RM-7mn 1QFY17: RM8mn RM-7mn 1QFY17: RM6mn Share of profit of RM87mn from Battersea Power Station project (1QFY17: Loss of RM1mn) Higher contribution from Elmina West, Elmina East and Serenity Cove, a project in Gold Coast, Australia Share of loss of RM5mn from Sime Darby CapitaLand (Melawati Mall) Sdn Bhd Melawati Mall was opened in Jul 17 and is still in its early stage of operation with occupancy of about 60% 1QFY17 included the reversal of an impairment of property, plant and equipment of RM10mn Gross Sales Value Unbilled Sales (As at 30 Sep 17) Units Sold 1QFY18: RM528mn (vs 1QFY17: RM639mn) RM1,778mn (As at 30 Jun 17: RM1,766mn) 1QFY18: 667 (vs 1QFY17 : 435 units) 30

31 Financial Position as at 30 September 2017 RM7,150mn Capital Structure 15% Gross Debt/Equity Ratio Short-term Borrowings 21% Total Borrowings 1% Net Debt/Equity Ratio RM1,100mn Total Borrowings RM1,100mn RM1,048mn Equity Debt Bank balances, deposits and * Includes Cash held under Housing Development Accounts cash* Long-term Borrowings 79% Note: Debt excluded liabilities associated with assets held for sale 31

32 Inventories RM million Completed Development Unit Inventories Months Inventory Turnover Period Total Excluding East Residence Development 2016 and 2017: The higher completed development unit inventories (as compared to RM319.5mn in 2015) were largely due to unsold units from the East Residence development at ALYA KL of RM580mn in 2016 and RM374mn in The management is currently working on the marketing strategy to sell these units. 32

33 Cash Flows from Operating Activities (RM million) As at 30 Sep 17 Cash flow from operating activities Land held for property development (228.5) (224.1) (4.2) (690.4) Property development cost (610.1) (552.6) (619.7) (87.9) Others (2.2) (23.7) Changes in working capital (840.8) (241.0) (21.4) (802) Cash (used in) / generated from operations (126.9) (378) Tax paid (173.2) (140.7) (135.4) 15 Zakat paid (1.0) (1.0) (1.0) - Dividend received from a joint venture Dividends received from associates Operating cash flows (used in) / generated from continuing operations (292.0) (363) 33

34 Capital Structure Overview As at 30 June 2017 RM million 6,323.2 Actual Capital Structure 6, , , Minority Interest Gross D/E Ratio: 18% Net D/E Ratio: 1% 9, Minority Interest 1, ,232.5 Gross D/E Ratio: 12% 9,645.4 Pro-forma Capital Structure Equity Debt Cash Equity Debt Cash Maturity Period of Indebtedness (30 Jun 2017) RM million Total = RM 1,168.9 million 20% 39% 26% 15% Within 1 year 1-2 years 3-5 years More than 5 years 34

35 Dividend Policy We propose to pay dividends out of cash generated from our operations after setting aside necessary funding for capital expenditure and working capital requirements. As part of this policy, our Company targets a dividend payout ratio of not less than 20.0% of our consolidated profit attributable to the owners of our Company under MFRS, beginning 1 July 2017 The declaration of interim and final dividends is subject to the discretion of our Board. However, our ability to pay will depend upon a number of factors, including: the level of our cash, gearing, return on equity and retained earnings; our expected financial performance; our projected levels of capital expenditure and other investment plans; our working capital requirements; and our existing and future debt obligations. 35

36 Thank You Investor Relations Sime Darby Property Berhad Corporate Website: Investor Relations:

37 1. Overview 2. Transformation Focus 3. Strategies 4. Financial Performance 5. Appendices 37

38 Ongoing Projects (Launched up to June 17) Township Type of product Date Launched KLANG VALLEY Elmina West Elmina East Serenia City Bandar Bukit Raja 2 & 3 Expected Completion Price Range (RM 000) Units Launched Total Gross Sales Value (RM mn) Units Sold as at 25 Dec 17 Take-up Rate as at 25 Dec 17 DSLH Jul , % DSLH Nov , % Semi-D Sep DSLH Mar storey Semi-D factory 1,880-2,200 1,160-2, % % Jul From 8, % DSLH Dec % DSLH May , % Bandar Bukit Raja 1 Shop office May NEGERI SEMBILAN 1,132-1, % Bandar Ainsdale DSLH Jul % JOHOR Bandar Universiti Pagoh DSLH Jan % TOTAL 1, Notes: - DSLH refers to double-storey link houses - All land tenures are freehold except for the development in Bandar Universiti Pagoh which is leasehold 38

39 Ongoing Projects (Launched in YTD FY2018) Township KLANG VALLEY Bandar Bukit Raja 2 & 3 Project Name Date Launched Price Range (RM 000) Units Launched Total Gross Sales Value (RM mn) Units Sold as at 25 Dec 17 Take-up Rate as at 25 Dec 17 Casira 2 Jul , % Elmina West Elmina Green 1 Oct , % Liana Nov 17 1,212-2, % Bukit Jelutong Tara Oct 17 2,009-2, % Putra Heights HT5Q Oct , % SJCC Lot 15 Nov , % Denai Alam Ferrea Nov , % NEGERI SEMBILAN Chemara Hills Castilla 2 Oct 17 1,467-1, % Bandar Ainsdale Redup Oct % TOTAL

40 Proposed Launches (2H FY2018) Township Type of product Total units Expected completion Est. GDV (RM mn) KLANG VALLEY KL East Serviced apartment Elmina West DSLH DS shop office Elmina East DS shop office Denai Alam Bandar Bukit Raja 2 & 3 DSLH DS shop office DSLH Serenia City DSLH Putra Heights Medium cost apartment 1, Bukit Jelutong Serviced apartment NEGERI SEMBILAN Nilai Impian DSLH JOHOR Bandar Universiti Pagoh Commercial office Commercial office DSLH TOTAL 3,787 1,901 Notes: - All land tenures are freehold except for the developments in Bandar Universiti Pagoh - Estimated GDV as at 31 Oct

41 Breakdown of External Revenue and PBIT 1QFY2018 vs 1QFY2017 REVENUE In RM'mn 1QFY2018 1QFY2017 YoY % Continuing Operations Property Development Property Investment (29) Leisure and Hospitality (3) Sub-total Discontinuing Operation 9 13 (33) Total Revenue PBIT In RM'mn 1QFY2018 1QFY2017 YoY % Continuing Operations Property Development Property Investment (7) 139 (105) Leisure and Hospitality Sub-total Discontinuing Operation 2 - >100 Total PBIT

42 Historical Key Financial Metrics FY2015, FY2016 and FY2017 Revenue PBIT Margin ,253, ,852 25% ,590, ,419 38% ,564, ,649 32% 3-Year Average 2,803,023 3-Year Average 872,307 31% PATAMI ROIC , % , % , % 3-Year Average 639,270 3-Year Average 10% Notes: Revenue, PBIT and PATAMI refer to contributions for the financial year from the continuing operations only Calculation of Return on Invested Capital (ROIC) based on PBIT and balance sheet of both continuing and discontinuing operations 42

43 Operating Profit FY2015 FY2016 FY2017 (34) -3% (9) -1% % % % % (15) -4% (31) -5% % % RM million (81), -7% 19 2% Operating Profit: Share of results of associate/jv: (61) PBIT: FY2016: Recorded gains on land disposal at Semenyih (RM185mn) & Serenia City (RM126mn) and gains on disposals of 2 property investment assets in Singapore (RM447mn) FY2017: Write down of inventories at ALYA KL and Putra Heights (RM149mn) offset by the gain on land disposal at Semenyih (RM413mn) and the gain on disposal of SD Enterprise Centre (Alexandra Road), Singapore (RM145mn) 43

44 Revenue and Gross Profit of Property Development Projects Revenue Gross Profit RM mn Ara Damansara Bandar Bukit Raja Bukit Jelutong City of Elmina: Elmina East and West City of Elmina: Denai Alam KL East (0.9) Putra Heights Saujana Impian Semenyih (57.2) (11.5) Serenia City (2.1) (2.9) 17.4 Subang Jaya City Centre (12.2) (1.6) (1.8) Bandar Ainsdale Chemara Hills Nilai Impian Bandar Universiti Pagoh Taman Pasir Putih (4.1) Others (69.5) Sub-total 2, , , Net Operating Expenses (294.2) (311.2) (347.6) Operating Profit (Excl. disposal gains) (34.9) Net Gain on Disposals Operating Profit Gross Profit Margin (%) 32.6% 19.6% 13.1% Operating Profit Margin (Excl. disposal gains) (%) 22.8% 6.3% (1.5%) Operating Profit Margin (Incl. disposal gains) (%) 28.1% 22.2% 16.7% 1 Higher revenue in 2017 due to the sale of 4 blocks of commercial office towers amounting to c.rm343.3mn 2 Lower revenue in 2016 and 2017 due to completion of several phases and some projects being at the tail end of the construction progress 3 Lower revenue in 2016 due to completion of several phases in 2015 and new phases launched towards the end of FY Higher revenue in 2017 due to higher construction completion and sale of inventories 2017 gross profit includes write down of inventories (RM19mn) Higher revenue in 2016 and 2017 due to disposal of land amounting to RM242mn and RM433.95mn, respectively Higher revenue in 2016 mainly due to disposal of land of RM129mn Increase in 2017 revenue due to recognition of sale of completed inventories in ALYA KL amounting to RM112.71mn 2017 gross profit includes write down of inventories of ALYA of RM130mn : Gain on disposal of 50% equity stake in the JV with Sunsuria (RM157mn) 2016: Gains on land disposal in Serenia City (RM129mn) and Semenyih (RM242mn) 2017: Gain on land disposal in Semenyih (RM434mn) 44

45 Revenue and Gross Profit of Property Investment 1 Property Revenue Gross Profit RM mm Wisma Zuellig, Selangor (0.2) (0.2) Wisma Guthrie, Selangor Oasis Square, Ara Damansara Wisma Sime Darby, KL Nil contribution from Wisma Zuellig in 2016 due to expiry of the tenancy agreement in Signed a lease agreement with Reagan in 2017 Currently under renovation and target to be operational in May 2018 SD Business Centre, Spore SD Centre, Spore SD Enterprise Centre, Spore Dundee Street, UK Others Sub-total Net Operating Expenses (61.0) (37.3) (53.8) 2 In 2016, recorded total net gains of RM479.4mn from the disposals of two properties in Singapore (SD Centre (Dunearn) and SD Business Centre (Kilang) In 2017, the net gains of RM145mn mainly attributable from the disposal of SD Enterprise (Alexandra) in Singapore Operating Profit (Excl. disposal gains) (8.7) 19.1 (31.0) 2 Net Gains on Disposals Operating Profit Gross Profit Margin (%) 56.7% 59.5% 42.0% Operating Profit Margin (Excl. disposal gains) (%) (9.5%) 20.1% (56.9%) Operating Profit Margin (Incl. disposal gains) (%) 79.5% 525.3% 208.8% 45

46 Revenue and Gross Profit of Hospitality & Leisure 1 2 Property Revenue Gross Profit RM mm Saujana Impian Golf & County Club, Selangor Sime Darby Convention Centre, KL TPC Kuala Lumpur Equatorial Hotel, Malacca Genting View Resort, Pahang Darby Park Serviced Residences, Margaret River, Australia Darby Park Serviced Residences, Subiaco, Australia (0.005) Karri Valley Resort, Australia Darby Park Executive Suites, Spore Darby Park Serviced Residences, Vietnam Others Sub-total Net Operating Expenses (128.7) (166.7) (81.5) Operating Profit (Excl. disposal gains) (33.5) (80.7) (14.9) Net Gains on Disposals Operating Profit (33.4) (42.4) (14.8) Gross Profit Margin (%) 58.0% 53.6% 56.3% Operating Profit Margin (Excl. disposal gains) (%) (20.4%) (50.3%) (12.6%) Operating Profit Margin (Incl. disposal gains) (%) (20.4%) (26.4%) (12.5%) 1 2 Lower contribution in 2016 mainly due to the lower occupancy rate In 2016, the net gains of RM38.3mn was mainly attributable to the disposal of Syarikat Malacca Straits Inn Sdn Bhd in Malacca 46

47 Asset Portfolio Property Investment, Hospitality and Leisure Property Investment Hospitality & Leisure RETAIL MALLS Melawati Mall, Kuala Lumpur (JV with CapitaLand Malls Asia) Launched in July 2017 Net lettable area of 617k sq.ft. Committed tenancy of 76% & occupancy rate of 62% as at 30 Sep 17 OFFICE SPACES KL East Gallery, Kuala Lumpur Targeted to open in the 4th quarter of 2018 Net lettable area of 384k sq. ft. Sime Darby Convention Centre, Malaysia TPC Kuala Lumpur, Malaysia Formerly known as Kuala Lumpur Golf & Country Club Sime Darby Property Corporate Tower Block F, Oasis Square Occupancy rate of 92% as at 30 Sep 17 Darby Park Executive Suites, Singapore Darby Park Serviced Residences, Vung Tau, Vietnam 47

48 Beyond A Township Developer Transformation of Ara Damansara to a Transit Oriented & Adjacent Development ~85 acres ~RM6bn GDV ~70% commercial Transforms the look and prospects of Ara Damansara, primarily a residential area by providing a much-needed commercial center Freehold Oasis Atelier (Retail space/ serviced apartments) Oasis Kyla (Serviced apartments) Oasis Central (Office/ retail space/ serviced apartments) LRT Ara Damansara Station LRT Lembah Subang Station Oasis Plantation (Office) Oasis Square (Office/ (Office/retail retail space/ serviced apartments) space/serviced apartments) Oasis Gallery (Property exhibition) (Property exhibition) Oasis Tower (Office) Oasis Rio (Office/ retail space/ serviced apartments) Oasis Autocity (Office/ Automobile Exhibition) Oasis Place (Serviced apartments, retails space) Oasis Mall (Complex commercial) (Oasis Corporate Park (1) (Hotel/ office/ retail space/ serviced apartments) (1) Parts of Oasis Corporate Park have been completed (Medalla, Centum, Meritus, and Augustus). 48

49 Sustainability Key Performance Indicators Sustainability Leadership Index Critical Sustainability Key Performance Indicators (KPIs) will guide Sime Darby Property to be a Sustainability Leader by 2020 KPIs Reducing Lost Time Injury Frequency Rate (LTIFR) & Increasing Concerned Reporting Increasing Lean Six Sigma (LSS) Monetary Benefits Zero fatality Best in Class LTIFR of 1.0 Targets Financial savings at 1.5% of Sime Darby Property s revenue Enhancing Global Reporting Initiative (GRI) Sustainability Reporting Best in class Benchmark by other in each sector Reducing Green House Gas (GHG) Emissions 100% achievement of reduction target Exceed national expectations Reducing Waste Generation Managing waste for 6 key townships and Operating Units Protecting Water Resources Adopt responsible water stewardship 49