SIME DARBY PROPERTY BERHAD Invest Malaysia 2018

Transcription

1 SIME DARBY PROPERTY BERHAD Invest Malaysia & 24 January

2 2 Presentation Outline 1 Overview 2 Strategies 3 Transformation Focus 4 Financial Performance 5 Market Outlook 6 Appendices

3 1 Overview 3

4 Our History Negara Properties, the subsidiary of Golden Hope Plantations launched its first township Taman Melawati (880 acres) 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) Guthrie Property Development Holding Bhd, a subsidiary of Kumpulan Guthrie Berhad launched its first township Bukit Jelutong (2,205 acres) Launched and transformed Nilai Impian 1 (1,263 acres) into a comprehensive township at the Pajam Nilai interchange along the North-South Expressway Completion of the Guthrie Corridor Expressway (25 km) which connect Shah Alam to Rawang Sime Darby Property Division was established following the historical merger of Kumpulan Sime Darby Bhd, Kumpulan Guthrie Bhd and Golden Hope Plantations Bhd Sime Darby Property, SP Setia and EPF acquired the iconic Battersea Power Station for GBP400mn (42 acres) Signed concession agreements with government of Malaysia and four higher learning institutions to develop Pagoh Education Hub City of Elmina was launched (5,000 acres) Started the developments of Denai Alam, Bukit Subang and Elmina East Launched Bandar Bukit Raja 2 (~1,400 acres) and Serenia City (2,370 acres) Taman Melawati Subang Jaya Bukit Jelutong City of Elmina

5 An Independent Listed Entity 5 On 30 November 2017, Sime Darby Property Berhad was listed as an independent entity on Bursa Malaysia The Largest Property Developer (20,763 acres) in Malaysia, in terms of land bank size with 1,599 employees Share Price Performance Increase in Market Capitalisation -20% +33% +33% RM1.50 RM1.60 RM10.8bn RM1.20 RM8.2bn L I S T I N G R E F E R E N C E P R I C E L I S T E D S H A R E P R I C E ( 3 0 N O V ' 1 7 ) S H A R E P R I C E T O D A Y ( 2 2 J A N ' 1 8 ) L I S T E D M A R K E T C A P ( 3 0 N O V ' 1 7 ) M A R K E T C A P T O D A Y ( 2 2 J A N ' 1 8 )

6 Shareholding Structure as at 22 Jan % RM1.60 Share Price Share Price Movement (RM) 1.78 As at 22 Jan Foreign Shareholdings 14.7% 4.8% 10.7% RM10.8bn Market Capitalisation Source: Tricor Domestic Shareholdings 15.1% and the public 6,800,839 Number of Ordinary Shares (000 )

7 Our Footprint 7 Georgetown Pulau Tikus Lagong Kota Elmina City of Elmina MALAYSIA Ara Damansara SJCC SJ7 ALYA Taman Melawati KL East 20,763 acres of the remaining developable land bank which includes: 12,026 acres within our existing 23 active townships, integrated & niche urban developments Denai Alam Bukit Jelutong Bandar Bukit Raja 1, 2 & 3 Kuala Lumpur 3,196 acres in the Malaysia Vision Valley (MVV) region Putra Heights Serenia City Planters Haven Negeri Sembilan Melaka Saujana Impian Total estimated remaining Gross Development Value (GDV) of RM100.4 bn Hamilton Labuan Bileh Nilai Impian 1 & 2 Bandar Ainsdale Nilai Utama Bandar Universiti Pagoh Flagship Development North-South Expressway Keretapi Tanah Melayu HSR line HSR Hubs Johor Bahru SINGAPORE Additional 20,599 acres of land via MVV & Land Options Agreements (5+3 years)

8 An Integrated Property Developer 8 Property Development Bandar Universiti Pagoh, Johor Domestic: Klang Valley, Negeri Sembilan and Johor International: London, United Kingdom, development of Battersea Power Station Property Investment Manages ~1.4mn sq. ft. of net commercial space in Malaysia, S pore and United Kingdom Retail Mall: Melawati Mall Melawati Mall, Selangor Hospitality & Leisure Domestic: Sime Darby Convention Centre, TPC KL, Impian Golf & Country Club International: Darby Park Executive Suites, S pore & Darby Park Serviced Residences, Vietnam TPC Kuala Lumpur (Formerly Kuala Lumpur Golf & Country Club)

9 Sustainability Strategic Framework 9 Ascribed to the United Nations Sustainable Development Goals (SDGs) The Framework aligns Sime Darby Property s purpose and values with the Organisational Sustainability Leadership Index (SLI) Key Performance Indicators Awarded by Property Guru Asia Property Awards, 2017 Special Recognition in Sustainable Development and Social Recognition in CSR

10 A Model Wellness & Liveability Township City of Elmina, Townships For The Future 300 acres of Central Park 90km cycling and jogging track Total 3,480 acres of green spaces Existing 2,700 acres of forest reserve The 36-acres Elmina Community Park was named the Elmina TN50 Community Park in line of Transformasi Nasional 2050 (TN50) An Award-Winning Township Star Property 2017 Winner : The Five Elements Award (Best Comprehensive Township) Institute of Landscape Architects Malaysia 2017 Winner: Landscape Analysis & Study Awards (Master planning) 10

11 2 Strategies 11

12 Key Investment Highlights 12 #1 Largest developable land bank in Malaysia 20,763 acres with remaining estimated GDV of RM100.4bn Excluding additional 20,599 acres of lands under Options Agreements with Sime Darby Plantation and Sime Darby Berhad ~85% of the total land bank located in Greater Klang Valley All freehold developments except for developments in Bandar Universiti Pagoh and ALYA A competitive advantage to monetize non-strategic land Sustainable earnings contribution for the next years Chemara Hills, Seremban City of Elmina, Selangor Bandar Bukit Raja, Klang

13 Key Investment Highlights 13 #2 Strategic locations with full spectrum of products Located in growth areas with robust economic activities and high accessibility to major road systems and railways Well positioned along the Guthrie Corridor Expressway (GCE) and West Coast Expressway Strategically located in Negeri Sembilan and Johor to benefit from Malaysia Vision Valley and High Speed Rail projects SELANGOR JOHOR Forest Reserve To Penchala Link (15 minutes)

14 Key Investment Highlights 14 #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 Putra Brand Awards 2017 Gold Award in Property Category (7 consecutive years since 2010) StarProperty.my Awards 2017 Top Ranked Developers of the Year Noble Excellence Awards 2017 Gold, National Best Integrated Development of the Year (Oasis Square, Ara Damansara) BCI Asia Awards 2017 Top 10 Developers Awards in Malaysia

15 TARGET BY FY2022 KEY PRIORITIES IN FY18-FY20 GROWTH STRATEGIES VISION Strategic and Growth Plan 15 No. 1 Property Developer in Malaysia Active Land Bank Management Pursue Strategic Partnerships Increase Product Diversification Focus on Township & Integrated Development Optimise & Grow Recurring Income Prioritise the development located along GCE Assess best and highest use for each land parcel & dispose nonstrategic lands Opportunistic land acquisitions Proactively secure partnerships via JV or opportunistic M&A Capture a larger share of the property development market in Malaysia Develop a variety of industrial developments such as Built- To-Suit (BTS) products Expand the development of integrated TOD and TAD projects Leverage on the sizeable land bank located in strategic growth areas Increase exposure in integrated & urban developments Enhance current GDV of RM100bn Grow recurring income base Retain strategic assets Dispose nonperforming assets Establish a core and experienced team Secure entry into FTSE Bursa Malaysia KLCI PATAMI Annual Growth Secure Market Leadership

16 Three-Pronged Approach to Active Land Bank Management 16 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 Target to be disposed within 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, an 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

17 Leverage on the expertise of key partners 17 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

18 Increase Product Diversification 18 Township & Integrated Development Transit Oriented and Transit Adjacent Developments Premium, Branded Lifestyle Industrial Park Total gross acreage of 5,000 acres comprising Bukit Subang, Denai Alam, Elmina East & Elmina West Estimated remaining GDV of RM20.5bn First township to be integrated with an education hub A 693-acres of area evolving from a landed property township into an integrated development 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 9 development parcels spanning 62-acres covering residential, commercial & retail components in affluent neighborhoods Encompasses one of Malaysia s premier golf and country clubs, TPC KL Proposed Sime Darby Business Park (823 acres) to be an integrated eco-system and the address of choice for SMEs, MNCs and Logistics Operators Offers a variety of Built-To-Suit products to serve as an industrial and high technology hub

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20 Prioritise Flagship Developments 20 Gamuda Garden Lagong 1,552 acres 10,297 acres of land bank along Guthrie Corridor Expressway with remaining GDV of more than RM20 billion Forest Reserve Denai Alam & Bukit Subang 1,250 acres Setia ECO Park Setia Alam Bdr. Bukit Raja 1,2 and 3 4,333 acres Kota Elmina 1,540 acres Elmina West 2,661 acres Bukit Jelutong 2,205 acres Elmina East 1,089 acres RRI Ara Damansara 693 acres Subang Jaya 2,241 acres DASH Good connectivity: GCE, DASH, NKVE, LATAR and NSE Mass Rail Transit-1 (MRT 1) and Keretapi Tanah Melayu Line (KTM) 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) Federal Highway Prioritise these developments by offering affordable and saleable products 20

21 Accelerate Current GDV of RM100bn ~12k acres of remaining developable land bank with a remaining GDV of RM85.9bn 21 Township/Development Name Year Commenced Total Area (acres) 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 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

22 Well Positioned to Benefit From Malaysia Vision Valley (MVV) 22 Elite Highway SELANGOR Proposed High Speed Rail Station KLIA To Bangi STRAITS OF MALACCA To Kajang Nilai Impian 1 & 2 Parcel A: 3,196 acres Additional 8,793 acres PORT DICKSON SEREMBAN Bandar Ainsdale North-South Expressway To Johor 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) PARCEL A : HIGH TECHNOLOGY AND INDUSTRIAL PARK A critical investment corridor for Negeri Sembilan Limited land for industrial developments in Nilai & Senawang 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

23 Option to Increase Land Bank Totaling ~20k acres 23 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 Sungai Kapar estate: 993 acres West Estate, Carey Island: 2,000 acres Sepang estate: 2,000 acres Lothian Estate: 485 acres Selangor Negeri Sembilan Options Validity: 5 years, extendable by 3 years 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

24 Unlock Value from Battersea Project 24 Established in Jul 12 Expected completion in 2028 Target Completion 867 Take-up rate: 99% T O T A L R E S I D E N T I A L U N I T S 253 Take-up rate: 90% 539 Take-up rate: 71% Phase 1 Phase 2 Phase 3A 100% completed Q H2021 JOINT VENTURE Site Area Estimated GDV Northern Line Extension Profit Recognition for Phase : 4 0 : 2 0 Sime Darby Property: SP Setia : EPF Years to project completion 42 acres ~ 9bn Tunneling work completed as boring machines break through at Kennington RM227mn RM140mn in FY17 RM87mn in 1QFY18 Future recognition in 2HFYfor remaining 93 units handed over in Q4CY17

25 Battersea Power Station Phase Two T h e P o w e r S t a t i o n Total ~1 million sq. ft. of Net Lettable Area comprising: 90 retail units 40,000 sq. ft. of F&B outlets 580,000 sq. ft. office spaces A fashion hub Main tenant: ~470k sq. ft. 253 units of apartments Contractor: Expected Completion in Q Proposed Reorganisation of Ownership of All the Commercial Assets to PNB and EPF for an estimated total consideration of 1.6bn (RM8.8bn) R A T I O N A L E : PNB and EPF view this as a strategic opportunity to secure ownership of a unique and iconic real estate asset in a global city, which will be able to deliver a sustainable income stream into the future to meet their respective income needs Actively expanding its real estate and infrastructure assets both domestically and overseas to deliver long-term sustainable income In line with PNB s Strategic STRIVE-15 Plan which outlines a long term strategy of portfolio diversification and judicious expansion into global assets

26 Grow Recurring Income to 10% of PBIT by 2022 #1 Build-To-Suit (BTS) & Lease Industrial 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 T a r g e t s ( B Y F Y ) Sizeable recurring income from the industrial segment 26 #2 Divest noncore hospitality assets 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 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 3Q CY2019 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

27 3 Transformation Focus 27

28 Transformation for Value Creation 28 3 focus areas for quick wins during FY2018-FY2019 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 in FY2018 and RM 2.5bn in FY2019 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 for new projects from 2H FY2018 onwards: 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 developments (est. spend of RM550m) to be implemented in FY2018 and realised progressively in the next 3-4 years 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) to be implemented in FY2018 and realised progressively in the next 3-4 years General & Admin. Rationalise and control of staff related costs Optimise township maintenance expenditure 10-15% reduction in targeted overhead expenditure (est. cost of RM300m) to be implemented and realised by December 2018

29 Achievements To date, 23 initiatives have been implemented across the 3 focus areas 29 Achievements Key Highlights 23 initiatives implemented to improve: Revenue Cost Time RM69mn cost savings potential to be realized progressively in the next 3-4 years Increase sales Improve speed to market Strategic cost management Overhauled SJCC Lot 15 sales gallery (64% take-up rate within first 2 days of official launch) 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 incentivized consultant fee scheme Potential cost savings of RM40mn once fully implemented 15% reduction (RM7mn) in structure costs of a high rise development through value engineering Average of 13% savings (RM13mn) in Main Infra contracts awarded to date Optimised staff related costs (RM12mn) Reduced township maintenance costs and closure of tail end townships (RM3mn)

30 4 Financial Performance 30

31 Breakdown of Launches in FY17 & YTD FY18 31 Launches in FY17 Launches in YTD FY18 34% 38% 66% 62% Open Market RSKU / Statutory Open Market RSKU / Statutory Total Units Launched: 1,708 Total GSV Launched: RM1.23bn Key Rumah Selangorku (RSKU) / Statutory Launch: Serunai, Bandar Bukit Raja 1 (570 units) Total Units Launched: 2,726 Total GSV Launched: RM1.25bn Key Rumah Selangorku (RSKU) / Statutory Launch: Harmoni 1, Putra Heights (1,700 units) Note: As at 14 Jan 18, units launched excludes land plots

32 Capital Structure Overview As at 30 June 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

33 Financial Position as at 30 September 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

34 Dividend Policy 34 We propose to pay dividends out of cash generated from our operations after setting aside necessary funding for capital expenditure and working capital requirements. Sime Darby Property Berhad 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 5 Market Outlook 35

36 Jan-15 Mar-15 May-15 Jul-15 Sep-15 Nov-15 Jan-16 Mar-16 May-16 Jul-16 Sep-16 Nov-16 Jan-17 Mar-17 May-17 Jul-17 Sep-17 Nov-17 Market Trends and Outlook The property sector is supported by stable economic growth, consumer sentiment and loan approval rates despite potential rate hikes in the short term. 36 Malaysia s GDP growth is expected to remain relatively stable at around 5.0% in line with its 2-year historical average. Stabilising consumer confidence to be supported by the rebound in crude oil prices and a strengthening MYR 7.0 % GDP (Year-on-Year) Q Q Consumer Sentiment Index Q Q Q Q Q Q Q Q Q Historical Forecasts Overnight Policy Rate is expected to increase by 25bps in 2018 from the current rate of 2.95% % Overnight Policy Rate Loan approval rates in Nov 17 is at 42%, above the low of 37% in Q and in-line with the 2-year average of 42%, indicating signs of recovery RM mn 25,000 20,000 15,000 10,000 5,000 0 Loans Applied & Loans Approved for Residential Property Purchase 60% 40% 20% 0% Source: Bloomberg and Bank Negara Malaysia Loan Approval Rate (RHS) Loans Approved Loans Applied

37 Market Trends and Outlook 37 The housing price index has been holding up well in 3Q 2017 despite a marginal year-on-year slowdown in price growth The Malaysian House Price Index Q Q Q Q Q Q Q Q Q Q % 8.0% 6.0% 4.0% 2.0% 0.0% Index YoY % (RHS) Transaction volume has been on a gradual decline but is expected to recover slightly in 2018, driven by higher launches from the affordable segment Units Residential Transaction by Volume and Value RM mil' 70,000 25,000 60,000 20,000 50,000 40,000 15,000 30,000 10,000 20,000 5,000 10, Q1 2015Q2 2015Q3 2015Q4 2015Q1 2016Q2 2016Q3 2016Q4 2016Q1 2017Q Volume Value (RHS) Source: Bloomberg

38 Cautionary Note 38 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 Property 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 forward-looking 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 Property Berhad and Sime Darby Property 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 Property 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.

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

40 40 6 Appendices Slide No. Details Ongoing and Upcoming Launches QFY18 Financial Highlights Historical FY15-17 Financial Information Additional Corporate Information

41 Key Ongoing Projects in FY2017 (Jul 16 Jun 17) 41 Township Project Name Type of Product OPEN MARKET KLANG VALLEY Elmina West Elmina East Serenia City Cipta 1 Bandar Bukit Raja 2 & 3 Bandar Bukit Raja 1 NEGERI SEMBILAN Date Launched Price Range (RM 000) Units Launched Total Gross Sales Value (RM mn) Units Sold as at 14 Jan 18 Take-up Rate as at 14 Jan 18 Elmina Valley 3b DSLH Jul , % Elmina Valley 4 DSLH Nov , % Tiana Semi-D Sep-16 Viana DSLH Mar-17 3-storey Semi-D factory 1,880-2,200 1,160-2, % % Jul-16 From 8, % Persada DSLH Dec % Casira 1 DSLH May , % BR17A2 Shop office May-17 1,132-1, % Bandar Ainsdale Santai DSLH Jul % JOHOR Bandar Universiti Pagoh RSKU / STATUTORY Bandar Bukit Raja 1 Harmoni Vista 2 DSLH Jan % TOTAL OPEN MARKET 1, Serunai Apartment Jan % TOTAL OPEN MARKET AND RSKU / STATUTORY 1,705 1, ,047 Note: DSLH refers to double-storey link houses; All land tenures are freehold except for the development in Bandar Universiti Pagoh which is leasehold

42 Key Ongoing Projects in YTD FY2018 (Jul 17 Jan 18) 42 Township OPEN MARKET KLANG VALLEY Bandar Bukit Raja 2 & 3 Elmina West Project Name Type of Product Date Launched Price Range (RM 000) Units Launched Total Gross Sales Value (RM mn) Units Sold as at 14 Jan 18 1 Take-up Rate as at 14 Jan 18 1 Casira 2 DSLH Jul , % Azira 2 DSLH Jan , % Elmina Green 1 DSLH Oct , % Liana DSLH Nov 17 1,212-2, % Bukit Jelutong Tara Semi-D Oct 17 2,009-2, % Putra Heights HT5Q SJCC Lot 15 Single Storey Retail Serviced Apartment Oct , % Nov , % Denai Alam Ferrea 2 DSLH Nov , % NEGERI SEMBILAN Chemara Hills Castilla 2 Semi-D Oct 17 1,467-1, % Bandar Ainsdale RSKU / STATUTORY Redup DSLH Oct % TOTAL OPEN MARKET 1, Putra Heights Harmoni 1 Apartment Aug , % TOTAL OPEN MARKET AND RSKU / STATUTORY 2,712 1, ,261 Note: 1. Total units sold for newly launched projects represented by total units booked. Booking involves the payment of deposit; 2. Total units sold updated as of 21 January 2018 for Azira and Ferrea (Phase 2)

43 Key Proposed Launches 2H FY2018 (Feb 18 Jun 18) 43 Target units to be launched 1,977 units Estimated GDV RM1,302 million Township Project Name Type of product Total units OPEN MARKET KLANG VALLEY Expected completion Est. GDV (RM mn) KL East Quarza Tower B Serviced apartment Elmina West Elmina Green 1b & 1c DSLH Elmina Green 2 DS shop office Elmina East G3A DS shop office Denai Alam J16 DS shop office Serenia City A2 DSLH Bukit Jelutong Phase 5 Serviced apartment NEGERI SEMBILAN Nilai Impian Orkid DSLH JOHOR Bandar Universiti Pagoh RSKU / STATUTORY Sarjana Promenade Commercial office Sarjana Promenade Commercial office Harmoni Damai DSLH TOTAL OPEN MARKET 1,415 1,171 Elmina West Harmoni 1 Apartment TOTAL OPEN MARKET AND RSKU / STATUTORY 1,977 1,302 Note: All land tenures are freehold except for the developments in Bandar Universiti Pagoh; Estimated GDV as at 31 Oct 2017

44 Breakdown of External Revenue and PBIT 44 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

45 Financial Highlights - First Quarter FY2018 1QFY2018 vs 1QFY2017 RM mn 1Q FY 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 1QFY18: RM528mn (vs 1QFY17: RM639mn) Unbilled Sales (As at 30 Sep 17) RM1,778mn (As at 30 Jun 17: RM1,766mn) Units Sold 1QFY18: 667 (vs 1QFY17 : 435 units)

46 Historical Key Financial Metrics FY2015, FY2016 and FY 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

47 Operating Profit 47 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)

48 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)

49 Revenue and Gross Profit of Property Investment 49 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%

50 Revenue and Gross Profit of Hospitality & Leisure 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

51 Cash Flows from Operating Activities 51 (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)

52 Inventories 52 RM million Completed Development Unit Inventories Months Inventory Turnover Period As at Dec' 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.

53 Strong and Dynamic Board of Directors 53 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

54 Qualified and Experienced Management Team 54 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 Quek Cham Hong Chief Operating Officer Integrated 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)

55 Asset Portfolio Property Investment, Hospitality and Leisure 55 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

56 Beyond A Township Developer Transformation of Ara Damansara to a Transit Oriented & Adjacent Development 56 ~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).

57 Sustainability Key Performance Indicators 57 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