Corporate Update 1Q FY2014 Financial Results. 9 May 2014

Transcription

1 Corporate Update 1Q FY2014 Financial Results 9 May 2014

2 On Track To Fulfil Our Transformation Strategy To Be A Premier Property Group In Malaysia Record unbilled sales of RM2.4bn provides strong earnings visibility RM3.0bn new launches in FY14, targeting sales of above RM2bn > 40% new launches in landed residential products; stronger bias towards Greater KL and Penang markets Manageable net gearing of 0.54x. De-gearing initiatives to further strengthen balance sheet Sustain growth momentum with continuing focus to unlock value through development activities and land sales 2

3 Corporate Snapshot SHARE INFORMATION Share price RM1.59 Issued Capital (shares) 1,365.6m of RM1 each Market capitalisation RM2,171 million Listing Main Board, Bursa Malaysia Major shareholder Tan Sri Dato Danny Tan (70.5%) FYE 31 DECEMBER % 10-Yr RCULS : Nominal value outstanding* Warrants (2009/2019)* * as at 17 March 2014 RM76.3m 154m RM1 each Revenue RM1,475.5 (+134.1%) Net Gearing 0.55x PBT RM503.6m (+123.9%) Total Assets RM5,425.7m PAT/MI RM362.3m (+111.7%) Net Assets / share RM2.32 PBT margin (%) 34.1% ROA (%) 6.7% Net EPS * 34.3sen ROE (%) 14.1% Gross DPS 4.5sen (interim) * Based on weighted average share base of 1,056m shares 3

4 1Q FY2014 Financial Review

5 1Q FY14 Financial Snapshot FYE Dec 31 RM m 1QFY14 1QFY13 % chg FY13 Revenue % 1,475.5 PBT % PATMI % Net EPS ^ % 34.3 PBT margin 8.3% 21.9% 34.1% PATMI margin 2.6% 14.3% 24.6% ^ Based on weighted average share base of 1,192.8 m shares for 1Q FY14 and m shares for 1Q FY13 Financial results of corresponding quarter in FY13 incorporated land sale revenue of RM126m and PBT gain of RM43.3m Adjusting for the impact of land disposal for comparison purposes 1QFY14 revenue was up 66.9% 1QFY14 PBT was 5.5% higher 1QFY14 net EPS at 0.7 sen 5

6 Review of 1Q FY14 Financial Results 1QFY14 revenue growth underpinned by Construction progress at key ongoing projects Tropicana Cheras, Tropicana Avenue, Tropicana Danga Bay (Tropez) & Tropicana Gardens Newer project, Tropicana Metropark also beginning to contribute Consolidation of Tenaga Kimia Sdn Bhd as a subsidiary from May 2013 onwards Modest increase in 1QFY14 PBT (ex-land sales) due to higher finance cost and administrative overheads PBT margin expected to improve in subsequent quarters Higher finance cost being addressed through aggressive ongoing de-gearing initiatives Improved absorption of administrative overheads once construction progress at key ongoing projects reach a more advanced stage 6

7 Net Gearing Manageable At 0.54x FYE Dec 31 RM m Mar Dec % chg Non Current Assets 4, , % Current Assets 1, , % Total Assets 6, , % Current Liabilities 1, % Non Current Liabilities 2, , % Total Liabilities 3, , % Shareholders Equity 2, , % Total Equity & Liabilities 6, , % Net assets per share of RM1.90 Increase in non current assets and liabilities due to completion of Tropicana Aman acquisition Improvement to net gearing on the cards with sizeable land disposals signed Partial sale of Tropicana Aman land to EcoWorld for RM471m Sale of Jalan Bukit Bintang land for RM448m Net Gearing (x) Net Asset / Share

8 Raising Another RM1.05bn Through Land Disposals RM339m raised in FY13 RM1.05bn signed and pending completion at this stage Including partial sale of Tropicana Aman and sale of Jalan Bukit Bintang land Landbank Sold Acquired Acres Book Value (RM/psf) Sale Price (RM/psf) Status Gross Proceeds (RM m) Tropicana Aman * Jalan Bukit Bintang, KL ,609 3,280 Jalan Kia Peng, KL ,338 2,100 SPA signed, pending completion SPA signed, pending completion SPA signed, pending completion Subtotal 1,051 * Partial disposal 8

9 Partial Disposal Of Tropicana Aman Sale of land at Tropicana Aman (previously known as Tropicana Canal City), Selangor to Eco World Development Group Berhad acres for a total cash consideration of RM471m or RM35 per sqft S & P is dated 19 March 2014; completion targeted in 2H2014 Out of the 1,172 acres, net developable area is approximately 749 acres of which acres is sold pursuant to this proposed disposal Transaction will give rise to net gain of approximately RM170m Estimated incremental net EPS of 12 sen to FY14 earnings 9

10 Sale Of Bukit Bintang Land JV With Agile Property Holdings For Future Upside Sale of acres in Jalan Bukit Bintang, KL for RM448.4m or approximately RM3,280 per sq ft To Offshore Triangle Sdn Bhd ( JV Co ) Expect completion in 1H FY15 JV Co is 70:30 owned by HK-listed Agile Property Holdings Ltd ( Agile ) and Tropicana respectively Strategic alliance with Agile allows Tropicana to also enjoy development upside Land earmarked for mixed commercial development Able to leverage on each other s expertise and track record in property development for mutual benefits Development will be marketed through Agile s network Strategic partnership with Agile will also further enhance Tropicana s brand presence and visibility across regional markets including China, Hong Kong and Macau Sales to raise net proceeds of about RM245m Transaction will give rise to estimated gain of RM145m; incremental net EPS of 11 sen 10

11 Location of Bkt Bintang Land 11

12 Recent Transactions In The Vicinity Subject Land 12

13 Sales & Projects Update

14 New Sales Of RM395m in 1Q FY14 Sales Summary (RM m) 1QFY14 FY13 RM m 2,160 >2,000 Tropicana Grande Tropicana Avenue Tropicana Cheras Tropicana Gardens Tropicana Metropark Tropicana Heights Others Q Q2014 New Sales Breakdown Tropicana Danga Bay Tropicana Danga Cove % 2% Penang World City Macalister 73 - Tropicana Landmark % 55% GRAND TOTAL 395 2,160 Central Northern Southern East Malaysia 14

15 Record Unbilled Sales At RM2.4bn Unbilled sales sustained at high of RM2.4bn Provides earnings visibility for FY2014/2015 Unbilled Sales As At 31 Mar 2014 (RM m) Tropicana Gardens 449 Tropicana Metropark 275 RM m 2,214 2,183 2,388 Tropicana Cheras 43 Tropicana Grande 16 Tropicana Avenue 343 1,647 Tropicana Heights 103 1,071 Others 89 Tropicana Danga Bay 443 Tropicana Danga Cove 33 1QFY13 2QFY13 3QFY13 4QFY13 1QFY14 Penang World City Macalister 76 Tropicana Landmark 28 Total 2,388 15

16 Planned Launches Of RM3.0bn in 2014 Targeting FY2014 new sales of more than RM2.0bn Greater focus on landed residential and township developments Maiden launch at Tropicana Heights well received Tropicana Aman target for launch in 2H 2014 RM m Estimated FY14 Launches Target Launch Period FY14 Launch To Date Launch Value (RM m) Take-up Rate (%) FY2014 To Be Launched Tropicana Heights 646 1Q&3Q % 376 Tropicana Aman 770 2H Tropicana Gardens 429 2H Tropicana Danga Bay 217 2H Tropicana Danga Cove 122 2H Penang World City 528 2H Macalister 320 1Q % - GRAND TOTAL 3, ,442 16

17 Property Development Central Region / Greater KL

18 Projects At A Glance - Central Region 18

19 Development Summary - Central Region Mar 2014 Projects Summary (RM m) Interest Total GDV Previous Launched GDV Overall Mar 2014 FY14 Launches Tropicana Avenue 100% % - - Tropicana Cheras 100% % - - Remaining GDV as at Mar 2014 Tropicana Gardens 70% 2, % 429 2,044 Tropicana Metropark 100% 7, % - 6,335 Tropicana Heights 100% 1, ,456 New Projects The Residences 100% 1, ,150 Tropicana Aman 100% 13, ,000 Casa Damansara 3 100% Others 100% GRAND TOTAL 27,125 2,305 1,845 24,550 19

20 Central Region - Tropicana Heights 199 acre freehold mixed development in residential hotspot Kajang with total estimated GDV of RM1.7bn Mixed development comprising bungalows, semi-detached, superlink, terrace, condo, serviced apartment, resident s clubhouse & commercial development within a gated enclave 20

21 Tropicana Heights Phase 1 Maiden launch of terrace houses with total estimated GDV of RM646m in 2014 Launched Phase 1 in Feb units 2 to 3-storey terrace houses with total GDV of RM270m Average pricing of RM870,000 with built-up from 2,135 sq ft to 3,344 sq ft Strong response with take-up of 84% to-date Target to launch cluster homes and terrace houses with total GDV of RM376m in 3Q

22 Central Region Tropicana Gardens Mixed residential and commercial development on 17.6 acres in Kota Damansara with total estimated GDV of RM2.7bn Proximity to Dataran Sunway MRT station Arnica Serviced Residences with GDV of RM230m fully sold BayBerry Serviced Residences with GDV of RM405m launched in Apr % take-up rate 22

23 Tropicana Gardens Launching Tower 3 in 2H 2014 Total GDV of RM429m Comprising 406 units serviced apartments with size ranging from 600sq ft to 1,399 sq ft Tower 3 23

24 Central Region - Tropicana Aman Tropicana Aman (previously known as Tropicana Canal City) Sold 308 net developable acres to EcoWorld for RM471m cash Remaining 440 net developable acres with potential GDV of RM13bn Target to launch landed properties with an estimated GDV of RM770m in 2H 2014 Tropicana Aman will solidify Tropicana s presence in Klang Valley Incorporating the Group s development DNA, emphasising on innovative concepts and its trademark features on space and greeneries 24

25 Tropicana Aman Prime Location With Excellent Connectivity Flanked by major expressways Nearby developments include Kota Kemuning, Putra Heights and up and coming Bukit Rimbayu 25

26 Tropicana Aman - Masterplan 26

27 Tropicana Aman - Masterplan Creating a vibrant and unique self-contained community incorporating Healthy Lifestyle Green, Sustainable Architecture and Township Community Living in a safe environment 27

28 Property Development Southern Region / Iskandar Malaysia

29 Projects At A Glance - Southern Region SENIBONG WATERFRONT 29

30 Development Summary Southern Region Mar 2014 Projects Summary (RM m) Interest Total GDV Previous Launched GDV Overall Mar 2014 FY14 Launches Remaining GDV as at Mar 2014 Tropicana Danga Bay 60% 8,370 1,180 64% 217 7,190 Tropicana Danga Cove 50% 12, % ,708 Future Projects Tropicana City Centre 100% 3, ,602 Tropicana Danga Lagoon 100% 2, ,500 TDB Hotel & Residences 60% 1, ,336 Tropicana Gelang Patah 100% 6, ,440 Senibong Waterfront 70% 3, ,673 GRAND TOTAL 38,061 1, ,449 30

31 Southern Region - Tropicana Danga Bay Mixed integrated development on 37 acres in Iskandar Malaysia with total estimated GDV of RM8.4bn 31

32 Tropicana Danga Bay - Masterplan Perspective 32

33 Tropicana Danga Bay Tropez Residences, high-end condominium project Comprising 3 Tower Blocks with total GDV of RM685m launched in 1QFY12 94% take-up rate; non-bumi units fully sold Bora Residences, 6 towers of serviced residences with approximately 2,200 units Part of master development which includes 8 acres of recreational space, diverse range of facilities and the proposed Danga Bay Shopping Mall Launched Tower 1 in Oct units of serviced apartments with estimated GDV of RM495m Current take-up of 44% Planning launch of Tower 2 in 2H units of serviced apartments with estimated GDV of RM217m 33

34 Southern Region - Tropicana Danga Cove Mixed integrated development on 227 acres in Iskandar Malaysia with total estimated GDV of RM12.1bn Oasis 1 & 2, comprising 290 units of 3 to 4-storey shop offices with GDV of RM432 million Overall take up of 36% with Oasis 1 fully taken up Planning launch of Oasis 3 in 2H units of 3 to 4-storey shop offices with total estimated GDV of RM122m 34

35 Property Development Northern Region / Penang Island

36 Projects At A Glance - Northern Region TROPICANA 218 MACALISTER PENANG WORLD CITY 36

37 Development Summary - Northern Region Mar 2014 Projects Summary (RM m) Interest Total GDV Previous Launched GDV Overall Mar 2014 FY14 Launches Remaining GDV as at Mar 2014 Penang World City 55% 10, % 528 9,466 Tropicana 218 Macalister 100% GRAND TOTAL 10, ,466 37

38 Northern Region - Penang World City Integrated waterfront city on acres freehold land with total estimated GDV of RM10.1bn Strategically located at the gateway of Penang Island 38

39 Tropicana Bay Penang World City Tropicana Bay Residences, comprising 6 blocks of high-end condominiums Successfully launched 4 blocks with GDV of RM620m in Sep 2013 Fully taken up Launching Block E in 2H 2014, comprising 167 units with estimated GDV of RM122m Average pricing of RM730,000 with built up of 900 sq ft Planning to launch one block of high-rise residences in 2H 2014 Estimated GDV of RM318m 39

40 Northern Region - Tropicana 218 Macalister 33-storey lifestyle development in the heart of George Town Featuring neo suites, serviced apartments, retail shops and 200-room hotel to be managed by Courtyard by Marriott the first in Malaysia Total estimated GDV of RM320m 40

41 Tropicana 218 Macalister Launched over Jan / Feb 2014 with encouraging response 299 units of serviced residences and neo suites with total GDV of RM290m Current take-up at 39% 19 retail units with GDV of RM30m Pricing from RM520k to RM5.0m with built-up of 323 sq ft to 2,000 sq ft Current take up of 41% 41

42 Prospects & Outlook

43 Sustaining Growth In FY14 Land sales and development activities to continue driving growth in FY2014 High unbilled sales of RM2.4bn underpins growth in development earnings Earnings momentum to improve as construction of ongoing projects progresses to more advanced stage Target to achieve new sales of more than RM2.0bn in 2014 from planned launches of RM3.0bn in FY2014 Greater emphasis on landed residential and township developments Maiden launch of Tropicana Heights and Tropicana Aman Strong response for initial launch in Tropicana Heights Continue with de-gearing focus to strengthen balance sheet 2014 New Launches of RM3.0bn 28% 11% 61% Central Southern Northern 43

44 Landbank of 1,954 acres with potential GDV of RM70.5bn Strategic landbanks across Greater KL, Iskandar Malaysia & Penang Island Strong potential for unlocking value through development activities and land sales Breakdown by Acreage Breakdown by GDV 5% 13% 36% 34% 61% 51% Central Southern Northern Total 1,954 acres Central Southern Northern Total GDV of RM70.5bn 44

45 Transformation Into Premier Property Group Unlocking Value Through Development Realising value of our sizeable landbank Accelerating inventory sales and fast tracking new launches Enhancement of profit margin through value engineering; and harnessing synergies via centralised procurement and shared services Unlocking Value Through Land Sales Pursue land sale opportunities to accelerate and enhance returns to shareholders Target sustainable disposal strategy to generate recurring income stream De-Gearing Initiatives Accelerate de-gearing via disposal of land parcels and none-core investment assets Target to achieve long term net gearing of < 0.5x Strategic Partnerships Forming strategic partnerships at projects level to accelerate growth Enhance Corporate Identity Via Re-Branding Exercise Official name change to Tropicana Corporation Berhad Current & future projects to carry common Tropicana brandname Improve brand equity to command premium product pricing Concurrent IR rebranding to institutionalize shareholders base 45

46 Thank you For further information, please contact : Mr Justin Law, Corporate Finance & Investor Relations T : ext 408 E : ir@tropicanacorp.com.my / justin.law@tropicanacorp.com.my W : IMPORTANT DISCLAIMER The presentation pack is intended to provide financial and management information about Tropicana Corporation Berhad ( Company ) for investors information only and shall not be construed as an attempt by the Company to encourage, recommend or advise any transaction and the Company makes no guarantees in any manner as to the accuracy of its contents. The plans, strategies and decisions of the Company in this presentation pack except those derived from actual historical events, are expressions of future prospects prepared based on the information and hypothesis currently available to the management of the Company and may include various risks and uncertainties which may result in a variation of the performance and records actually announced in the future. We encourage that you make your own decision in making your investments. The Company assumes no responsibility in any way and shall bear no liability for the results of any and all transactions conducted by you based on the use and/or referencing of the contents in this presentation pack.

47 Appendix 1 Development Summary

48 Summary Of Future Launches Potential New Launches Interest Tenure Total Land Area (acre) Land Cost (RM m) Total GDV (RM m) Remaining Mar 2014 (RM m) Development Period Tropicana Gardens 70% Leasehold ,679 2,044 7 yrs Tropicana Metropark 100% Freehold ,165 6, yrs Tropicana Heights 100% Freehold ,726 1, yrs Tropicana Danga Bay 60% Freehold ,370 7, yrs Tropicana Danga Cove 50% Freehold ,140 11, yrs Penang World City 55% Freehold , ,086 9, yrs Future Projects The Residences 100% Freehold ,150 1,150 4 yrs Tropicana Aman 100% Leasehold ,000 13, yrs Casa Damansara 3 100% Freehold yrs Others 100% Various Tropicana City Centre 100% Freehold ,602 3,602 8 yrs Tropicana Danga Lagoon 100% Freehold / Leasehold ,500 2, yrs TDB Hotel & Residences 60% Freehold ,336 1,336 4 yrs Tropicana Gelang Patah 100% Freehold ,440 6, yrs Senibong Waterfront 70% Freehold ,673 3,673 7 yrs GRAND TOTAL 1,954 74,432 70,465 48

49 Appendix 2 Key Personnel

50 Executive Board Members Tan Sri Dato Danny Tan Group Executive Vice Chairman Entrepreneur with extensive experience in property development, resort management, restaurants, leisure and entertainment operations. Dato Yau Kok Seng Group CEO Former Group MD of Hong Leong Industries Bhd and MD of Sunway Holdings Bhd. A Chartered Accountant by profession with > 30 years of experience in corporate finance and general management. Dato Dickson Tan Deputy Group CEO Bachelor of Science (Honours) in Business Management and Masters of Science in Internal Auditing and Management. 8 years experience in corporate strategy and planning, group sales and marketing and business development. Edmund Kong Group Managing Director Architect by profession with > 20 years of experience in the property development. Overseeing the property development projects for Central Region. Kok Kong Chin Group Managing Director Over 23 years of experience in the Asean banking and financial services industry, particularly in the areas of investment banking, corporate banking, leveraged buyout & financing, loan syndication and capital markets. 50

51 Professional Senior Management Lee Han Ming Managing Director Projects Bachelor of Engineering (Hons) in Civil Engineering from University of Bristol and MBA from University of Bradford. >20 years in property development : business planning, land acquisition, master planning, product & design development, tender and award, cost and cash flow management, construction management and BCA Green Mark Accreditation. Leong Choon Meng Executive Director Corporate Finance > 20 years in corporate finance, general management, investment and fund management, treasury, taxation and investor relations in several major conglomerates in the country. Pamela Loh Executive Director Sales & Marketing MBA from University of Bath, UK. > 20 years in property development, real estate, retail/merchandise industry, responsible for marketing strategies, planning, public relations, market research, product pricing /development and advertising & promotion activities. 51