SIME DARBY PROPERTY BERHAD Management Roadshow, London

Transcription

1 SIME DARBY PROPERTY BERHAD Management Roadshow, London March

2 2 Presentation Outline 1 Sime Darby Property Today 2 Financial Performance 3 Transformation Journey 4 Growth Strategies 5 Deep Dive into Operations 6 Megatrend and Market Outlook 7 Appendices

3 3 1 Sime Darby Property Today

4 Shareholding Structure % RM1.41 Share Price Share Price Movement (RM) 1.78 As at 14 Mar Foreign Shareholdings 14.8% 4.7% 10.5% RM9.6bn Market Capitalisation Other Domestic Shareholdings 14.9% 6,800,839 Source: Tricor and the public Number of Ordinary Shares (000 )

5 Strong Board Governance and Management Total Board Members Non-Executive Directors Independent Directors Women Directors Non-Independent Non-Executive Chairman Tan Sri Abdul Wahid Omar Sime Darby Property Board R i s k M a n a g e m e n t C o m m i t t e e G o v e r n a n c e & A u d i t C o m m i t t e e T e n d e r C o m m i t t e e N o m i n a t i o n & R e m u n e r a t i o n C o m m i t t e e Accountable for holistic risk management framework and efficacy of internal controls Ensure effective corporate governance Oversee the process of awarding significant contracts Responsible for all matters relating to the nomination of new Directors and assessment of Group Managing Director and his direct reports Operational excellence and value creation Efficient employment of company resources to deliver value to shareholders Group Managing Director Dato Sri Amrin Awaluddin Management Team Develop long-term strategies for sustainable growth Adhere to the highest standards on Environmental, Social and Governance (ESG) practices

6 The Largest Property Developer in Malaysia In terms of land bank size GEORGETOWN, PENANG 3,321 acres KEDAH Key Developments North-South Expressway HSR line HSR Hubs 2,834 acres 1,462 acres THAILAND SELANGOR PENINSULA MALAYSIA 3,297 acres 3,196 acres NEGERI SEMBILAN BANDAR UNIVERSITI PAGOH HSR Hubs on Sime Darby Property s land bank UNITED KINGDOM JOHOR High Speed Rail (HSR) AUSTRALIA Singapore Helensvale, Queensland 65 acres Property Development 23 Acres of remaining 20,743 developable land bank to be developed over years 20,599 RM96bn 44% Property Investment Active townships, integrated and niche developments Estimated Remaining Gross Development Value (GDV) Sq. ft. of net commercial space in Malaysia and 1.4mn Singapore Hospitality & Leisure Employees 1,594 Acres of land under option agreements with Sime Darby Berhad and Sime Darby Plantation Berhad Assets across 4 countries including 2 golf courses (36- hole & 18-hole respectively) 6 and a convention center 6 Average trading discount to Realised Net Asset Value (RNAV)

7 Key Investment Highlights 7 #1 Largest developable land bank in Malaysia #2 Strategic locations with full spectrum of products #3 Recognised brand with established track record 20,743 acres with remaining estimated GDV of RM96bn Additional 20,599 acres of lands under Options Agreements with Sime Darby Plantation Berhad and Sime Darby Berhad ~84% of the total land bank located in Selangor and Negeri Sembilan All freehold developments except for developments in Bandar Universiti Pagoh and ALYA Competitive advantage to monetise non-strategic land Sustainable earnings contribution for the next years City of Elmina, Selangor Bandar Bukit Raja, Klang Strategically located in Negeri Sembilan and Johor to benefit from Malaysia Vision Valley and High Speed Rail (HSR) projects Two HSR stations are on Sime Darby Property s land bank in Seremban and Pagoh Located in growth areas with robust economic activities and superior accessibility to major road systems and railways Well positioned along the Guthrie Corridor Expressway (GCE) and West Coast Expressway Transit Oriented / Adjacent Developments Good track record of over 40 years in property development Successfully transformed former estate lands into major townships Taman Melawati Received awards over the years for excellence and distinctions Putra Brand Awards 2017 Gold Award in Property Category (7 consecutive years) Subang Jaya Since 1972 Since 1976 StarProperty.my Awards 2017 Top Ranked Developers of the Year Developments along major highways (e.g. Guthrie Corridor Expressway) Developments with High Speed Rail Transit Stations Noble Excellence Awards 2017 Gold, National Best Integrated Development of the Year BCI Asia Awards 2017 Top 10 Developers Awards in Malaysia

8 Guthrie Corridor Elmina East & West Bdr. Bukit Raja Accelerated Growth along the Guthrie Corridor Serenia City M sia Vision Valley Bdr. Uni. Pagoh Option Agreement 8 Gamuda Garden Lagong 1,552 acres 10,297 acres of land bank along Guthrie Corridor Expressway with remaining GDV of more than RM20 billion Kota Elmina 1,540 acres 70% of total land bank are on ongoing developments 30% on future developments (Kota Elmina and Lagong) Elmina West 2,661 acres Forest Reserve Elmina East 1,089 acres Good connectivity: GCE, DASH, NKVE, LATAR and NSE Denai Alam & Bukit Subang 1,250 acres RRI DASH Mass Rail Transit-1 (MRT 1) and Keretapi Tanah Melayu Line (KTM) Setia ECO Park Setia Alam 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) Federal Highway

9 Guthrie Corridor Elmina East & West Bdr. Bukit Raja Elmina East and West - A Wellness Hub Serenia City M sia Vision Valley Bdr. Uni. Pagoh Option Agreement 9 3,750 acres (Remaining: 3,174 acres) Elmina City Centre straddles both sides of the GCE from the Elmina West to Elmina East, forming a prime integrated development hub RM19.0bn Estimated Remaining GDV 26,809 units Total estimated residential units 300 acres Elmina Central Park 2,700 acres Tasik Subang Dam Forest Reserve 42 acres Wellness Cluster 90 km Combined jogging and cycling track Launches to date with total GDV of >RM2.4bn Elmina Valley 1 Elmina Valley 2 Elmina Valley 3 (2-storey house) (2-storey house) (2-storey house) 341 units From RM586, units From RM645, units From RM619,888

10 Guthrie Corridor Elmina East & West Bdr. Bukit Raja Serenia City M sia Vision Valley Bdr. Uni. Pagoh Option Agreement 10 Bandar Bukit Raja - Highly Connected Industrial / Township (22 km) 4,333 acres (Remaining: 2,834 acres) Close proximity to KLIA and Port Klang RM13.9bn Estimated Remaining GDV 21,858 units Total estimated residential units 82,000 residents Expected population at full capacity > 800 acres Industrial Business Park 125 acres Town Park High Connectivity via major road infrastructure Jalan Meru, New North Klang Straits Bypass (Shapadu Highway) and upcoming West Coast Expressway (WCE) Launches to date with total GDV of > RM3.8bn Casira 2 (2-storey house) Persada (2-storey house) Azira (2-storey house) (20 km) (63 km) 111 units From RM738, units From RM658, units From RM678,888

11 Serenia City - Industrial and High Technology Hub Guthrie Corridor Elmina East & West Bdr. Bukit Raja Serenia City M sia Vision Valley Bdr. Uni. Pagoh Option Agreement 11 2,370 acres (Remaining: 1,462 acres) Close proximity to Kuala Lumpur, Putrajaya, Cyberjaya and KLIA RM7.6bn Estimated Remaining GDV 12,522 units Total estimated residential units 197 acres Industrial Components High Connectivity Accessible via ELITE Highway, Federal Road, ERL & KLIA Educational & Retail Catalysts Xiamen University First Chinese university branch campus in Malaysia with a capacity of 10,000 students Horizon Village Outlet 150 one-storey retail lots over total net lettable area of 400,000 sq ft with 2,000 covered parking bays Launches to date with total GDV of ~RM190mn Cipta 1 Cipta 2 (Detached Factory) (Industrial Plot) 9 plots (20.73 acres) C5 (Industrial Plot) 1 plot (10.79 acres) 15 units From RM8,174,720

12 Well Positioned to Benefit From Malaysia Vision Valley (MVV) Guthrie Corridor Elmina East & West Bdr. Bukit Raja Serenia City M sia Vision Valley Bdr. Uni. Pagoh Option Agreement 12 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) SD Plantation: ~70,000 hectares 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 Elite Highway SELANGOR Proposed High Speed Rail Station KLIA To Bangi STRAITS OF MALACCA To Kajang Nilai Impian 1 & 2 (1,809 acres) Parcel A: 3,196 acres Additional 8,793 acres PORT DICKSON SEREMBAN Bandar Ainsdale (562 acres) To Johor North- South Highway Continuation of Putrajaya, Cyberjaya and Kuala Lumpur International Airport development area Leverage on existing developed infrastructure & proposed HSR project Legend Sime Darby Property s land Sime Darby Berhad s land Sime Darby Plantation s land MALACCA

13 Guthrie Corridor Bandar Universiti Pagoh A University Town Elmina East & West Bdr. Bukit Raja Serenia City M sia Vision Valley Bdr. Uni. Pagoh Option Agreement 13 4,099 acres (Remaining: 3,297 acres) Malaysia s First Integrated Township with an Education Hub RM5.1bn Estimated Remaining GDV 5,671 units Total estimated residential units 238 acres Industrial Business Park High Speed Rail The Muar Station within vicinity of township Pagoh Education Hub First Multi-Varsity Education Hub and Catalyst to BUP 506 acres development 4 major institutions 6,000 current student population with a maximum student capacity of 10,800 students 60:40 JV between Sime Darby Property and Tunas Selatan Construction Launches to date with total GDV of ~RM211mn Harmoni Vista (DSLH) Sarjana Square (Shop Office) Sarjana Promenade (Shop Office) 383 units From RM365, units From RM888, units From RM950,000

14 Guthrie Corridor Option to Increase Land Bank Totaling ~20k acres Elmina East & West Bdr. Bukit Raja Serenia City M sia Vision Valley Bdr. Uni. Pagoh Option Agreeme nt 14 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 Bukit Selarong estate: 148 acres Byram estate: 864 acres 2 0, a c r e s 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 Selangor 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 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

15 15 2 Financial Performance

16 5-Year Group Highlights 16 Revenue Profit Before Interest & Tax Return on Invested Capital (ROIC) Gross Sales Value Units Sold RM mn RM mn Margin % 5-Year Average ROIC: 9% RM mn Units FY2017 2, % 7.4 FY2017 IC RM11.0bn 1,917 1,765 FY2016 3,371 1,203 36% ,745 1,894 FY2015 3, % ,134 1,659 FY2014 2, % 7.7 2,750 3,049 FY2013 2, % 7.6 2,149 2,103 Note: FY2013 and FY2014 were not restated for adoption of MRFS Framework and MRFS 15 Includes both continuing and discontinuing operations

17 Snapshot of 1HFY HFY2018 1HFY2017 YoY REVENUE PBIT PATAMI BASIC EPS Sen Gross Sales Value Units Sold RM mn RM mn % 1, , , Note: Figures include both continuing and discontinuing operations

18 High Financial Flexibility 18 As at 31 December 2017 Total Equity RM9,971 million +40% QoQ due to capitalisation of inter-company loans Gross Debt to Equity Ratio 13% Net Debt to Equity Ratio 4% Net Assets Per Share RM1.47 C a s h E q u i v a l e n t s B o r r o w i n g s * RM1.08bn 494 RM1.05bn RM0.90bn 3% 14% RM1.17bn % RM1.10bn % RM1.33bn Jun'17 30 Sep'17 A s at 31 Dec'17 Bank balance, deposit and cash Cash under Housing Development Account 30 Jun'17 30 Sep'17 31 Dec'17 Long-term Short-term Lower cash equivalents and higher borrowings due to repayment of loans to related parties pursuant to the demerger Note: * Excludes borrowings from discontinuing operations

19 19 3 Transformation Journey

20 Transformation Roadmap Driving transformation initiatives with strong focus on execution and value creation 33 completed initiatives RM63 million Potential cost savings #1: Identified critical areas of improvements #2: Refine and expand 5-Year Strategy Blueprint & Transformation Roadmap #3: Strengthen Executive Leadership Team 141 ongoing initiatives Enhanced business model Focus on 5 priorities for strategic alignment across all functions Support Function People Property Development Operational Sales & Marketing #1 Property Developer Embark on Transformation Journey Phase 2.0 a. 3-Year Strategic Review b. Potential inorganic growth via M&A opportunities c. Explore adjacent or new business areas 20 Transformation days post-listing Transformation days post-listing Transformation 2.0 In FY2022

21 Maximising Growth Potential 21 Transformation 1.0 quick wins during FY2018-FY % reduction in overhead costs estimated total cost of RM300mn Unbilled Sales Target: RM2bn by Dec 2018 RM2.5bn in FY % reduction in infrastructure & building costs estimated total construction cost of RM1.1bn by Dec 2018 F O C U S A R E A S Strategic sourcing of key materials and enhance tender process 4-7% cost reduction Shorten development time: Landed: from 39 months 30 months High-rise: from 63 months 45 months for 8 targeted projects (est. spend of RM550mn) by Dec 2018

22 22 4 Growth Strategies

23 Sustainable & Balanced Growth Strategies 23

24 K e y A r e a s O n g o i n g J V P a s t R e c o r d s Dynamic and Active Land Bank Management 24 Three-pronged approach to maximize investment returns of our sizeable land bank D e v e l o p Prioritise on growth of high performing townships to extract highest economic value Drive cost reduction initiatives to enhance profitability S t r a t e g i c P a r t n e r s h i p s 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 M o n e t i s a t i o n Strategic land sale outside key development focus to: Expedite the development via other developers Speedy realisation of land value Target disposal: 1,651 acres 2015: Elmina land (135 acres) to E&O 2016: Serenia City land (375 acres) to Sunsuria & Semenyih land (238 acres) 2017: Semenyih land (803 acres) to I&P 2018: New Lunderston land (298 acres)

25 Optimise and Grow Recurring Income 25 Target to achieve 10% of PBIT contribution by FY2022 Leverage on strategic location to build industrial estate segment Stable cash flows from high-value assets STEP 01 Actively grow high-yielding asset portfolio Joint venture with Mitsui International to develop a high technology Built-to- Suit (BTS) industrial hub at Bandar Bukit Raja 2 & 3 Strategic partnering to transform our land bank into a thriving business and industrial park Optimise value creation of Melawati Mall (Occupancy: 71%) Expedite completion of KL East Gallery (Target completion 3QCY2019) Divest non-core hospitality assets in Australia, Singapore & Vietnam Enhance value creation of existing assets STEP 02

26 Strengthen Product Offerings 26 TOD and TAD 9 projects, more than RM10bn of GDV < 800m to LRT/train stations Affordable Homes Quality homes of < RM250k per unit in flagship developments in Selangor Industrial Business Parks Built-to-suit facilities in strategic locations with multimodal access to transportation hubs 800 acres 197 acres Urban Wellness Quality living space with greeneries and a wellness cluster 90 km cycling/jogging tracks 3,480 acres of green space

27 27 Transit Oriented Developments (TOD) and Transit Adjacent Developments (TAD) Total of 9 Developments, with an estimated remaining GDV of >RM10bn SJ 7 6T

28 28 5 Deep Dive Into Operations

29 Healthy Launches of Various Product Lines 29

30 Sustainable Growth with Remaining Developable Period of 10 to 25 years 30 By Remaining Developable Land By Remaining Gross Development Value (GDV) 7% 8% 11% 32% 37% 14% 20,743 acres 29% RM96.2 billion 16% 20% 15% 5% 6% Guthrie Corridor Negeri Sembilan Johor Klang Greater Klang Valley Serenia City Notes: 1. Township categorisation: Guthrie Corridor: Elmina West, Elmina East, Denai Alam & Bukit Subang, Bukit Jelutong, Kota Elmina and Lagong Negeri Sembilan: Nilai, Bandar Ainsdale, Planters Haven and Malaysia Vision Valley Johor: Bandar Universiti Pagoh and Taman Pasir Putih Greater Klang Valley: Ara Damansara, ALYA, Putra Heights, KL East, USJ Heights, SJCC and SJ7 2. Remaining GDV excludes potential GDV for Malaysia Vision Valley

31 Steady Stream of Launches 31

32 Unbilled Sales as at 31 December RM1,594 million (-10% YoY) 30 Sep 17: RM1,778 million Elmina West Elmina East Denai Alam & Bkt Subang Bukit Jelutong BBR 2&3 BBR 1 Ara D sara ALYA Serenia City KL East Putra Tmn Others* Heights Melawati Nilai Bdr. Ainsdale Pagoh & Tmn. Pasir Putih Along Guthrie Corridor Expressway (GCE) Klang Greater Klang Valley Negeri Sembilan Johor * Others: USJ Heights and Saujana Impian

33 Inventories and Spill-Over Intense focus on inventory reduction initiatives 33 Breakdown of Inventories (Units) 4,741 49% Carrying Values (RM'mn) 1,927 24% 543 7% 51% % 76% 93% Completed Under Construction Completed Ongoing Open Market Statutory Completed units are mainly from: East Residence: 89 Saujana Impian: 63 KL East: 58 The Glades: 53 Largely: East Residence: RM325mn The Glades: RM117mn KL East: RM64mn Planters Haven: RM46mn

34 Highlights on Battersea Power Station ~ 9bn 40:40:20 Acquisition of land for 400mn (c.4% of estimated GDV) Estimated GDV JV between Sime Darby Property : SP Setia : EPF 42 acres Site Area Phase 1 (Circus West) Phase 2 (The Power Station) Proposed Reorganisation of Ownership of Phase 2 s Commercial Assets No. of Residential Units Take-up Rate 99% 92% Target Completion 100% Q Units Handed Over Profit Recognition (RMmn) Gross Development Value ( mn) Overlooks the River Thames and 7 acre Power Station Park and creates a long curving promenade along the western edge of the Power Station The centre point of the regeneration of the Battersea Power Station Master Plan and wide Nine Elms regeneration 917 2,305 Notes: handed over in FY17, 494 in 1HFY18; 2. RM140mn recognised in FY17, RM112mn in 1HFY18 Estimated total consideration of 1.6bn (RM8.8bn) PNB and EPF view this as a strategic opportunity to secure ownership of an iconic asset which will be able to deliver a sustainable income stream Enable Sime Darby Property to focus as a property developer and realize development returns of Phases 3-7

35 35 6 Megatrends & Market Outlook

36 Emerging Megatrends to Benefit Sime Darby Property 36 12% Increase in YoY daily ridership of public transports in Malaysia 2026 Year of completion of High Speed Rail (HSR) from KL - Singapore Benefit to developments along HSR stations and Transit Oriented and Adjacent Developments such as Bandar Universiti Pagoh, Putra Heights, SJCC & KL East Connectivity Malaysia My 2nd Home Program Major catalyst for tourism industry to attract foreign investors Chinese demand for Malaysian residential property increased 138% YoY in 1H17 and demand is expected to continue growing Sime Darby Property offers a range of affordable to high-end properties to cater to this rising demand Rising Foreign Interest Malaysia Population 70% Population between years old 33.8 million by 2020 (2017: 32 mil) Estimated population with Greater Klang Valley as the fastest growing area > 7% of 65+ years old by 2020 Benefit to Sime Darby Property s strategic locations in Greater Klang Valley such as City of Elmina Source: PwC, CBRE, Juwai, MDEC, MITI and DOSM Technology 21% growth of E-Commerce in Malaysia by 2020, double from % growth expected in the Asia Pacific data centre industry by 2020 Benefit to land bank earmarked for industrial such as Serenia City, Bandar Bukit Raja and Malaysia Vision Valley

37 Jan-15 Apr-15 Jul-15 Oct-15 Jan-16 Apr-16 Jul-16 Oct-16 Jan-17 Apr-17 Jul-17 Oct-17 Jan-18 Jan-15 Apr-15 Jul-15 Oct-15 Jan-16 Apr-16 Jul-16 Oct-16 Jan-17 Apr-17 Jul-17 Oct-17 Jan-18 Malaysia: Economic and financial stability expected to remain intact 37 Stable real GDP growth expected to hover around 5.0% Interest rates expected to maintain at 3.25% as additional rate hikes unlikely Consumer confidence index highest in almost 3 years at 82.6 % % Index Historical Forecasts Housing loan approval rates is at 42%, in-line with the 3-year average Stable housing price index despite marginal year-on-year price slowdown Residential transactions have been stable in the past 7 quarters RMmn % Index % Units RMmn 50,000 40,000 30,000 20,000 10, ,000 60,000 50,000 40,000 30,000 20,000 10, ,000 20,000 15,000 10,000 5,000 0 Loan Approval Rate (RHS) Loans Applied Index YoY% (RHS) Volume Value (RHS) Source: Bloomberg and Bank Negara Malaysia

38 Summary: Why Sime Darby Property 38 1 The largest property developer by land bank size in Malaysia (20,743 acres) Superior locations in key economic corridors to benefit from Malaysia Vision Valley and High Speed Rail (HSR) projects Two HSR stations are located at our developments in Seremban and Pagoh 2 On a transformational journey to be a market leader 3 Sustainable and balanced growth strategies 4 Improving core operational performance since listing 5 Supported by resilient domestic economic conditions 6 Strong Board of Directors and Management team with deep experience

39 Cautionary Note 39 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.

40 THANK YOU 40

41 41 7 Appendices Slide No. Details Additional Corporate Information Operational Statistics Sustainability Initiatives

42 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

43 Strong and Dynamic Board of Directors 43 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 Group 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

44 Qualified and Experienced Management Team 44 Strong management team with relevant experience and a proven track record in the real estate industry Dato' Sri Amrin Awaluddin Group Managing Director Datuk Tong Poh Keow Chief Financial Officer Fairuz Radi Chief Transformation Officer & Head, Group Managing Director s Office Dato Wan Hashimi Albakri Chief Operating Officer Township Development Quek Cham Hong Chief Operating Officer Integrated Gerard Yuen Yun Wei Chief Marketing & Sales Officer Choo Suit Mae Group General Counsel TBA Chief Human Resources Officer Tang Ai Leen Chief Risk and Compliance Officer Aravindan Devapalan Nair Chief Corporate Assurance Officer

45 Land Bank Status as at 31 December 2017 ~12k acres of remaining developable land bank with a remaining GDV of RM81.8bn 45 Township/Development Name Total Area (Acres) Remaining Developable Area Remaining GDV (RM bn) (Acres) 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 2,661 2, City of Elmina: Elmina East, Shah Alam 1, City of Elmina: Denai Alam & Bukit Subang 1, Bandar Bukit Raja 2 & 3, Klang 2,820 2, Bandar Bukit Raja 1, Klang 1, Serenia City, Dengkil, Sepang 2,370 1, Putra Heights, Subang Jaya 1, Ara Damansara, Petaling Jaya Bukit Jelutong, Shah Alam 2, Saujana Impian, Kajang Taman Melawati, Ulu Klang Nilai Impian 2, Nilai Nilai Impian 1, Nilai 1, Bandar Ainsdale, Seremban Planters' Haven, Nilai Bandar Universiti Pagoh, Muar 4,099 3, Taman Pasir Putih, Pasir Gudang TOTAL 25,664 12, Future Development 8, Note: 1. This GDV figure is preliminary and currently only available for 3 future developments

46 Second Quarter of Financial Year 2018 Ended 31 December YOY 2QFY2018 2QFY2017 Continuing Operations % RM mn RM mn Revenue Segment Results PBIT PBT PATAMI (3) Basic EPS (sen) (31) Discontinuing Operations Revenue PBIT > (5.0) PATAMI (<100) Total Revenue PBIT PATAMI (5) Basic EPS (sen) (32)

47 Segment Results as at 2QFY2018 2QFY2018 vs 2QFY % REVENUE (RM mn) 2QFY17 2QFY18 16% SEGMENT RESULTS (RM mn) (3.5) (8.9) (7.9) Property development Property investment Leisure and hospitality Property development Property investment Leisure and hospitality Property Development: Included the sale of 298 acres in New Lunderston Estate of RM86mn Higher stages of completion for Serini Tower 1 & 2 of Taman Melawati and higher sales achieved for Viana and Tiana of Elmina East Property Development: Gain from the sale of New Lunderston Estate of RM84mn Share of profit from Battersea of RM25mn upon the handover of 63 units (vs RM96mn in 2QFY17) Property Investment: Previous year included the contribution from SD Property (Alexandra) in Singapore which had been disposed in Sep 16 Property Investment: Share of loss from Sime Darby CapitaLand (Melawati Mall) of RM4mn despite higher occupancy rate of 71% (vs 62% as at 30 Sep 17) Leisure & Hospitality: Lower contributions from Sime Darby Convention Centre and TPC KL Leisure & Hospitality: Marginal improvements due to cost saving initiatives

48 Sales Performance as at 31 December % YoY Target FY2018: RM2 billion 1HFY2018 1HFY2017 1QFY18 52% 1QFY17 52% 2QFY18 48% RM1,004 million 2QFY17 48% RM831 million 1QFY18 2QFY18 1QFY17 2QFY17 89% of sales originated from the Klang Valley region, followed by Negeri Sembilan (8%) and Johor (3%) 1,148 units sold, up +33% YoY in 1HFY2018; of which 16% was from statutory projects (1HFY2017: Units sold of 865)

49 Steady Stream of Launches 49 Gross Sales Value (GSV) for Launches RM1,468mn RM1,530mn Actual Forecasts RM mn 1,176 RM1,020mn 292 Jul-Sept 2017 Oct-Dec 2017 Jul-Dec 2017 Jan-Jun Jul-Dec , H2018 2H2018 1H2019 Launched 1,278 units¹ Take-up rate of 47%¹ Target to launch 1,950 units Target to launch 1,538 units ¹ Excludes the launch of Rumah Selangorku in Putra Heights of 1,700 apartment units with estimated GSV of RM389mn 2 Includes the launches of Azira and Sarjana Promenade 3 Includes only open-market residential and commercial product launches

50 Upcoming Launches (Jan Jun 2018) 50 Total Target Units to be Launched 1,950 units Total Estimated GSV RM1.5bn Klang Valley Denai Alam Elmina West Bandar Bukit Raja Township Type No. of Units Est. GSV (RM mn) Est. Average Price (RM) Double Storey Link House ,508 Semi - D ,544,000 Double Storey Link House ,457 Double Storey Shop Office ,240,909 Double Storey Link House ,641 Commercial ,861,618 Serenia City Double Storey Link House ,691 Putra Heights Strata Bungalow ,572,308 Strata Condo ,126,521 Alya Strata Townhouse ,721,220 KL East Service Apartment ,000 Negeri Sembilan Nilai Utama Double Storey Link House ,801 Johor Bandar Universiti Pagoh Commercial Office ,144 Double Storey Link House ,428 Total 1,950 1,530.3

51 Upcoming Launches (Jul Dec 2018) 51 Total Target Units to be Launched 1,538 units Total Estimated GSV RM1.0bn Klang Valley Township Type No. of Units Est. GSV (RM mn) Est. Average Price (RM) Bandar Bukit Raja Semi - D ,391,040 Double Storey Link House ,521 Serenia City Double Storey Link House ,126 SOHO ,750 Putra Heights Retail ,557,400 Bungalow ,181,790 Elmina West Double Storey Link House ,000 Johor Taman Pasir Putih Double Storey Link House ,000 Bandar Universiti Pagoh Shop ,100,000 Double Storey Link House ,000 Total 1,538 1,020.1

52 Jan-15 Apr-15 Jul-15 Oct-15 Jan-16 Apr-16 Jul-16 Oct-16 Jan-17 Apr-17 Jul-17 Oct-17 Jan-18 Jan-15 Apr-15 Jul-15 Oct-15 Jan-16 Apr-16 Jul-16 Oct-16 Jan-17 Apr-17 Jul-17 Oct-17 Jan-18 Jan-15 Apr-15 Jul-15 Oct-15 Jan-16 Apr-16 Jul-16 Oct-16 Jan-17 Apr-17 Jul-17 Oct-17 Jan-15 Apr-15 Jul-15 Oct-15 Jan-16 Apr-16 Jul-16 Oct-16 Jan-17 Apr-17 Jul-17 Oct-17 Jan-18 Jan-15 Apr-15 Jul-15 Oct-15 Jan-16 Apr-16 Jul-16 Oct-16 Jan-17 Apr-17 Jul-17 Oct-17 Jan-18 UK: Low consumer confidence, potential interest rate hikes & slowdown in price/rental growth 52 Real GDP growth expected to stabilise between 1.60% % Additional rate hikes in 2018 are expected due to UK s BoE hawkish stance Consumer confidence has dipped considerably since January 2015 % % Index Historical Forecasts UK s housing price index has seen a moderate YoY growth Housing rental prices in the UK has been increasing YoY, albeit at a declining pace Moderate decline of home sales growth (i.e. -5% in the last 4Qs) YoY% YoY% Units YoY% , , , ,000 80,000 60,000 40,000 20, Units YoY% (RHS) Source: Bloomberg

53 Sime Darby Property s Buyers Profile 53

54 Sime Darby Property s Buyers Profile By Location 54

55 Highlights on Melawati Mall 55 Joint Venture Acreage Net Lettable Area No of Floors Committed Lease 1 Certificate of Completion and Compliance was issued on 5 M a y Mall was opened on 2 6 J u l y :50 Sime Darby Property: CapitaLand Malls Asia 5. 6 a c r e s 613,995 s q. f t. 8 f l o o r s r e t a i l + 5 f l o o r s c a r p a r k 76.4% (Operational occupancy: 70.7%) Eight retail floors with over 250 shops across a net lettable area of 620,000 sq. ft. Tenants Catchment E s t , r e s i d e n t s from Taman Melati, Wangsa Maju, Bukit Antarabangsa, Taman Permata and Kemensah Heights Patrons of the mall on the opening day As at 31 December 2017

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

57 Sustainability Strategic Framework 57 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

58 Sustainability Key Performance Indicators 58 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