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1 SIME DARBY PROPERTY BERHAD Invest Malaysia 2018 23 & 24 January 2018

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Page 1: SIME DARBY PROPERTY BERHAD Invest Malaysia 2018One-on-One... · merger of Kumpulan Sime Darby Bhd, Kumpulan Guthrie Bhd and Golden Hope Plantations Bhd • Sime Darby Property, SP

1

SIME DARBY PROPERTY BERHADInvest Malaysia 2018

23 & 24 January 2018

Page 2: SIME DARBY PROPERTY BERHAD Invest Malaysia 2018One-on-One... · merger of Kumpulan Sime Darby Bhd, Kumpulan Guthrie Bhd and Golden Hope Plantations Bhd • Sime Darby Property, SP

Presentation Outline

2

1 Overview

2 Strategies

3 Transformation Focus

4 Financial Performance

5 Market Outlook

6 Appendices

Page 3: SIME DARBY PROPERTY BERHAD Invest Malaysia 2018One-on-One... · merger of Kumpulan Sime Darby Bhd, Kumpulan Guthrie Bhd and Golden Hope Plantations Bhd • Sime Darby Property, SP

3

1 Overview

Page 4: SIME DARBY PROPERTY BERHAD Invest Malaysia 2018One-on-One... · merger of Kumpulan Sime Darby Bhd, Kumpulan Guthrie Bhd and Golden Hope Plantations Bhd • Sime Darby Property, SP

Our History4

• Negara Properties, the subsidiary of Golden Hope Plantations launched

its first township – Taman Melawati (880 acres)1972

1984• 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)

1995

• Guthrie Property Development Holding Bhd, a subsidiary of Kumpulan

Guthrie Berhad launched its first township – Bukit Jelutong (2,205 acres)

1997

• Launched and transformed Nilai Impian 1 (1,263 acres) into a comprehensive township at the Pajam Nilai interchange along the North-South Expressway

2007

2012

2013

• 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

2016• Launched Bandar Bukit Raja 2 (~1,400 acres) and Serenia

City (2,370 acres)

Taman Melawati

Subang Jaya

Bukit Jelutong

2005• Completion of the Guthrie Corridor Expressway (25 km) which

connect Shah Alam to Rawang

City of Elmina

Page 5: SIME DARBY PROPERTY BERHAD Invest Malaysia 2018One-on-One... · merger of Kumpulan Sime Darby Bhd, Kumpulan Guthrie Bhd and Golden Hope Plantations Bhd • Sime Darby Property, SP

An Independent Listed Entity5

On 30 November 2017, Sime Darby Property Berhad was listed as an independent entity on Bursa Malaysia

RM1.50

RM1.20

RM1.60

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 ED 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 )

-20% +33%

Share Price Performance

The Largest Property Developer (20,763 acres) in Malaysia, in terms of land bank size with 1,599 employees

+33%

Increase in Market Capitalisation

RM8.2bn

RM10.8bn

L I S T ED 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 )

Page 6: SIME DARBY PROPERTY BERHAD Invest Malaysia 2018One-on-One... · merger of Kumpulan Sime Darby Bhd, Kumpulan Guthrie Bhd and Golden Hope Plantations Bhd • Sime Darby Property, SP

Shareholding Structure as at 22 Jan’18 6

Source: Tricor

54.7%

10.7%

4.8%

ForeignShareholdings

14.7%

As at 22 Jan’18

15.1%Domestic Shareholdings

and the public

RM1.60 Share Price

RM10.8bnMarket Capitalisation

6,800,839Number of Ordinary Shares (000’)

1.201.11

1.28

1.45

1.78

1.52

1.64 1.60

Share Price Movement (RM)

Page 7: SIME DARBY PROPERTY BERHAD Invest Malaysia 2018One-on-One... · merger of Kumpulan Sime Darby Bhd, Kumpulan Guthrie Bhd and Golden Hope Plantations Bhd • Sime Darby Property, SP

Our Footprint7

20,763 acres of the

remaining developable land bank which includes:

20,763 acres of the

remaining developable land bank which includes:

12,026 acres within our

existing 23 active townships,

integrated & niche urban developments

12,026 acres within our

existing 23 active townships,

integrated & niche urban developments

3,196 acres in the Malaysia

Vision Valley (MVV) region

3,196 acres in the Malaysia

Vision Valley (MVV) region

Total estimated remaining Gross Development Value

(GDV) of RM100.4 bn

Total estimated remaining Gross Development Value

(GDV) of RM100.4 bn

Additional 20,599 acres

of land via MVV & Land Options Agreements (5+3 years)

Additional 20,599 acres

of land via MVV & Land Options Agreements (5+3 years)

LagongKota Elmina

Pulau Tikus

Georgetown

Melaka

Johor Bahru

Kuala Lumpur

NegeriSembilan

MALAYSIA

SINGAPORE

Hamilton Labuan Bileh

Ara DamansaraSJCC SJ7

Serenia City

ALYATaman Melawati

KL East

Nilai Impian 1 & 2 Bandar Ainsdale

Nilai Utama

Bandar Universiti Pagoh

Saujana Impian

Denai AlamBukit Jelutong

Putra Heights

Planters’ Haven

City of Elmina

Bandar Bukit Raja 1, 2 & 3

North-South Expressway

Keretapi Tanah Melayu HSR Hubs Flagship Development

HSR line

Page 8: SIME DARBY PROPERTY BERHAD Invest Malaysia 2018One-on-One... · merger of Kumpulan Sime Darby Bhd, Kumpulan Guthrie Bhd and Golden Hope Plantations Bhd • Sime Darby Property, SP

An Integrated Property Developer8

Domestic: Klang Valley, Negeri Sembilan and Johor

International: London, United Kingdom, development of Battersea Power Station

Property DevelopmentProperty Development

Property InvestmentProperty Investment

Manages ~1.4mn sq. ft. of net commercial space in Malaysia, S’pore and United Kingdom

Retail Mall: Melawati Mall

Hospitality & LeisureHospitality & Leisure

Domestic: Sime Darby Convention Centre, TPC KL, Impian Golf & Country Club

International: Darby Park Executive Suites, S’pore & Darby Park Serviced Residences, Vietnam

Bandar Universiti Pagoh, Johor

Melawati Mall, Selangor

TPC Kuala Lumpur (Formerly Kuala Lumpur Golf & Country Club)

Page 9: SIME DARBY PROPERTY BERHAD Invest Malaysia 2018One-on-One... · merger of Kumpulan Sime Darby Bhd, Kumpulan Guthrie Bhd and Golden Hope Plantations Bhd • Sime Darby Property, SP

Sustainability Strategic Framework9

The Framework aligns Sime Darby Property’s purpose and values with the Organisational Sustainability Leadership Index (SLI) Key Performance Indicators

Ascribed to the United Nations Sustainable Development Goals (SDGs)

Awarded by Property Guru Asia Property Awards, 2017

Special Recognition in Sustainable Development and Social Recognition in CSR

Page 10: SIME DARBY PROPERTY BERHAD Invest Malaysia 2018One-on-One... · merger of Kumpulan Sime Darby Bhd, Kumpulan Guthrie Bhd and Golden Hope Plantations Bhd • Sime Darby Property, SP

A Model Wellness & Liveability Township

City of Elmina, Townships For The Future

10

The 36-acres Elmina Community Park was named the “Elmina TN50 Community Park” in line of Transformasi Nasional 2050 (TN50)

300 acres of Central Park

90km cycling and jogging track

Total 3,480 acres of green spaces

An Award-Winning Township

Star Property 2017Winner : The Five Elements Award

(Best Comprehensive Township)

Institute of Landscape Architects Malaysia 2017Winner: Landscape Analysis & Study Awards

(Master planning)

Existing 2,700 acres of forest reserve

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2 Strategies

Page 12: SIME DARBY PROPERTY BERHAD Invest Malaysia 2018One-on-One... · merger of Kumpulan Sime Darby Bhd, Kumpulan Guthrie Bhd and Golden Hope Plantations Bhd • Sime Darby Property, SP

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 15 – 20 years

Chemara Hills, Seremban City of Elmina, Selangor Bandar Bukit Raja, Klang

Page 13: SIME DARBY PROPERTY BERHAD Invest Malaysia 2018One-on-One... · merger of Kumpulan Sime Darby Bhd, Kumpulan Guthrie Bhd and Golden Hope Plantations Bhd • Sime Darby Property, SP

Key Investment Highlights 13

#2Strategic 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)

Page 14: SIME DARBY PROPERTY BERHAD Invest Malaysia 2018One-on-One... · merger of Kumpulan Sime Darby Bhd, Kumpulan Guthrie Bhd and Golden Hope Plantations Bhd • Sime Darby Property, SP

Key Investment Highlights 14

Putra Brand Awards 2017Gold Award in Property Category(7 consecutive years since 2010)

StarProperty.my Awards 2017Top Ranked Developers of the Year

Noble Excellence Awards 2017Gold, National Best Integrated Development of the Year (Oasis Square, Ara Damansara)

BCI Asia Awards 2017Top 10 Developers Awards in Malaysia

#3 Recognisedbrand 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

Page 15: SIME DARBY PROPERTY BERHAD Invest Malaysia 2018One-on-One... · merger of Kumpulan Sime Darby Bhd, Kumpulan Guthrie Bhd and Golden Hope Plantations Bhd • Sime Darby Property, SP

Strategic and Growth Plan 15

No. 1 Property Developer in Malaysia

VIS

IO

N

Pursue Strategic

Partnerships

Increase Product

Diversification

• Develop a variety of industrial developments such as Built-To-Suit (BTS) products

• Expand the development of integrated TOD and TAD projects

Active Land Bank

Management

• Prioritise the development located along GCE

• Assess best and highest use for each land parcel &dispose non-strategic lands

• Opportunistic land acquisitions

Focus on Township & Integrated

Development

Optimise & Grow

Recurring Income

GR

OW

TH

S

TR

ATEG

IES

KEY

PR

IO

RITIES

IN

FY

18

-FY

20

TA

RG

ET B

Y

FY

20

22

• Proactively secure partnerships via JV or opportunistic M&A

• Capture a larger share of the property development market in Malaysia

• 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 non-performing assets

• Establish a core and experienced team

Secure entry into FTSE Bursa

Malaysia KLCI

PATAMI Annual Growth

Secure Market

Leadership

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Three-Pronged Approach to Active Land Bank Management

DEVELOPSTRATEGIC

PARTNERSHIPS MONETISATION

Drive cost reduction initiatives to enhance profitability

Prioritise and focus on growth of high performing townships

A r e a s :

Townships: Elmina West, Elmina East, Serenia City, Bandar Bukit Raja & Bandar Universiti Pagoh

Integrated: SubangJaya City Centre (SJCC) and KL East

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

O n g o i n g P r o j e c t s :

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

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 SeriemasDevelopment

Target to be disposed within 2 years: • 1,614 acres – Kedah 37 acres – Sabah

Bandar Bukit Raja Industrial Park, an establishment of the joint venture currently in progress

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Leverage on the expertise of key partners

Malaysia Vision ValleySixth Economic Corridor in

Malaysia

PJ MidtownIntegrated project at the epicenter of Petaling Jaya

Battersea Power Station (BPS) Project

A major regeneration project in Nine Elms

Melawati MallThe first major shopping mall in

Taman Melawati

Radia Bukit JelutongMixed development at the heart

of Bukit Jelutong

17

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Increase Product Diversification18

• Total gross acreage of 5,000 acres comprising Bukit Subang, DenaiAlam, 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 & QuarzaResidences, featuring modern contemporary living

• Served by the Putra Heights Interchange, USJ Interchange, NKVE, LDP, ELITE, KESAS & SKVE Highways

• Lifestyle destination with a modern multi-modal 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

Township & Integrated Development

Premium, Branded Lifestyle

Transit Oriented and Transit Adjacent Developments

IndustrialPark

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Prioritise Flagship Developments

Forest Reserve

DASH

Elmina East1,089 acres

Denai Alam & Bukit Subang1,250 acres

RRI

Bdr. Bukit Raja 1,2 and 34,333 acres Subang Jaya

2,241 acres

Ara Damansara693 acresBukit

Jelutong2,205 acres

Setia ECO ParkSetia Alam

Elmina West2,661 acres

Kota Elmina1,540 acres

Lagong1,552 acres

Gamuda Garden

Legend

20

Ongoing developments

Guthrie Corridor ExpresswayDamansara-Shah Alam Elevated Expressway (DASH)

Future developments

New Klang Valley Expressway (NKVE)KL-Kuala Selangor Expressway (LATAR)North-South Expressway (NSE)Federal Highway

10,297 acres of land bank along

Guthrie Corridor Expressway with

remaining GDV of more than RM20 billion

Prioritise these

developments by offering affordable and saleable products

Good connectivity: GCE, DASH, NKVE, LATAR and

NSE Mass Rail Transit-1 (MRT 1) and

Keretapi Tanah Melayu Line (KTM)

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~12k acres of remaining developable land bank with a remaining GDV of RM85.9bn

¹ Remaining developable area includes 6 parcels of homestead lots and 60 vacant homestead plots² This GDV figure is preliminary and currently only available for 4 out of 26 future developments

Township/Development Name YearCommenced

Total Area (acres)

Remaining Developable Area (acres)

RemainingGDV

(RM bil)

Remaining Development

Period (years)

Niche / Integrated

ALYA, Kuala Lumpur 2012 62 51 6.8 9

Chemara Hills, Seremban 2013 44 3 0.1 1

USJ Heights, Subang Jaya 2007 375 17 0.2 3

SJ 7, Subang Jaya 2015 40 35 5.2 16

SJCC, Subang Jaya 2012 30 28 3.8 11

KL East 2011 160 97 2.0 12

Township

City of Elmina: Elmina West, Shah Alam 2015 2,661 2,623 16.1

City of Elmina: Elmina East, Shah Alam 2012 1,089 856 3.6 25

City of Elmina: Denai Alam & Bukit Subang 1999 1,250 104 0.7

Bandar Bukit Raja 2 & 3, Klang 2016 2,820 2,472 12.427

Bandar Bukit Raja 1, Klang 2002 1,513 144 2.2

Serenia City, Dengkil, Sepang 2013 2,370 1,486 8.7 19

Putra Heights, Subang Jaya 1999 1,796 86 3.8 12

Ara Damansara, Petaling Jaya 1999 693 74 5.8 6

Bukit Jelutong, Shah Alam 1995 2,205 165 2.1 7

Saujana Impian, Kajang 1995 600 13 0.01 1

Taman Melawati, Ulu Klang 1972 880 6 0.7 6

Nilai Impian 2, Nilai 2014 546 426 3.2 9

Nilai Impian 1, Nilai 1997 1,263 189 0.9 6

Bandar Ainsdale, Seremban 2011 562 195 1.3 8

Planters' Haven, Nilai 1996 250 81 n/a¹ n/a¹

Bandar Universiti Pagoh, Muar 2013 4,099 2,855 6.2 17

Taman Pasir Putih, Pasir Gudang 1981 356 20 0.1 6

TOTAL 25,664 12,026 85.9Future development 8,737 14.5²

Accelerate Current GDV of RM100bn

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Well Positioned to Benefit From Malaysia Vision Valley (MVV)

To Bangi

To Johor

To Kajang

KLIA

Elite Highway

STRAITS OF MALACCA

PORTDICKSON

MALACCA

SELANGOR

SEREMBAN

Proposed High Speed Rail Station

North-South Expressway

Parcel A:3,196 acres

Additional 8,793 acres

Sime Darby Property’s land

Sime Darby Plantation’s land

Legend

Sime Darby Berhad’s land

BandarAinsdale

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 new economic corridor and a Premier Urban Transformation Region under the National Transformation Agenda

Nilai Impian1 & 2

• A critical investment corridor for NegeriSembilan

• Limited land for industrial developments in Nilai & Senawang

• Increased foreign and local demand for high technology hub

• Continuation of Putrajaya, Cyberjaya and Kuala Lumpur International Airport development area

• Leverage on existing developed infrastructure & proposed HSR project

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23

Option to Increase Land Bank Totaling~20k acres

Kulai, Johor

Kulai A estate: 1,862 acresKulai B estate: 3,186 acres

Land Options Agreement

with Sime Darby Plantation

1 1 , 8 0 6 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

Options Validity: 5 years, extendable by 3 years

Selangor

Sepang estate: 2,000 acresLothian Estate: 485 acres

Sungai Kapar estate: 993 acresWest Estate, Carey Island: 2,000 acres

Byram estate: 864 acres

Ainsdale estate: 268 acres

Bukit Selarong estate: 148 acres

Kedah

Penang

NegeriSembilan

20 ,599acres

MVV Options Agreement

with Sime Darby Berhad

8 , 7 9 3 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

Labu, New Labu (Kirby), New Labu (Main) and Hamilton estates

Sua Betong estates

Page 24: SIME DARBY PROPERTY BERHAD Invest Malaysia 2018One-on-One... · merger of Kumpulan Sime Darby Bhd, Kumpulan Guthrie Bhd and Golden Hope Plantations Bhd • Sime Darby Property, SP

Unlock Value from Battersea Project24

Phase 1 Phase 2 Phase 3A

T O T A L R E S I D E N T I A L U N I T S

867

253

539

Take-up rate: 99%

Take-up rate: 90%

Take-up rate: 71%

Established in Jul’12Expected completion

in 2028

JOINT VENTURE

4 0 : 4 0 : 2 0Sime Darby Property: SP Setia : EPF

10-15Years to project completion

42 acresSite Area

~£9bnEstimated GDV

Tunneling work completed as boring machines break through at Kennington

Profit Recognition for Phase 1

RM227mn• RM140mn in FY17• RM87mn in 1QFY18• Future recognition in 2HFYfor

remaining 93 units handed over in Q4CY17

Northern Line Extension

Target Completion

100% completed

Q4 2020 1H2021

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Battersea Power Station Phase Two25

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 Q4 2020

Proposed Reorganisation of Ownership of All the Commercial

Assets toPNB 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

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#1Build-To-Suit

(BTS) & Lease

Industrial Assets

#2Divest non-

core hospitality

assets

#3Enhance value via

creation of existing assets

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

I m m e d i a t e F o c u s : T a r g e t s( B Y F Y 2 0 2 2 )

Sizeable recurring income from the

industrial segment

Review profitability of existing portfolio

and divest non-performing assets in Australia, Singapore and

VietnamStable earnings and cash flows

Historical Disposals: FY2015: Subang AvenueFY2016: 2 assets in S’pore & a hotel in MalaccaFY2017: 1 asset in S’poreYTD FY2018: 1 asset in Australia

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

Grow Recurring Income to 10% ofPBIT by 2022

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27

3 Transformation Focus

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3 focus areas for quick wins during FY2018-FY2019

28

▪ Reduce main infrastructure cost▪ Optimise building cost by refining

structural and M&E design

▪ Rationalise and control of staff related costs

▪ Optimise township maintenanceexpenditure

▪ Enhance consultant and contractor selection process

▪ Integrate tender process with authority approval

▪ Enhance project timeline tracking system

▪ Exploring optimal business models

▪ Strengthen market intelligence andconsumer insight platform

▪ Overhaul digital & sales gallery experience

▪ Leverage on strategic partnership

▪ Strategic sourcing of key materials ▪ Tender strategy enhancement▪ Strategic collaboration with business

partners

Transformation initiatives Aspirational Targets

10 - 15% reduction in targeted overhead expenditure (est. cost of RM300m) to be implemented and realised by December 2018

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

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

Increase Unbilled Sales to RM2bn in FY2018 and RM 2.5bn in FY2019

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

Increase sales

Improve speed to market

Strategic cost management

Focus Area

Sales & marketing

End-to-end cycle time

Procurement

Design to value

General & Admin.

Transformation for Value Creation

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Achievements

To date, 23 initiatives have been implemented across the 3 focus areas

29

Achievements

23 initiatives implemented to improve:• Revenue• Cost• Time

RM69mn cost savings potential to be realized progressively in the next 3-4 years

Key Highlights

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)

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

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

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

Increase sales

Improve speed to market

Strategic cost

management

Page 30: SIME DARBY PROPERTY BERHAD Invest Malaysia 2018One-on-One... · merger of Kumpulan Sime Darby Bhd, Kumpulan Guthrie Bhd and Golden Hope Plantations Bhd • Sime Darby Property, SP

30

4 Financial Performance

Page 31: SIME DARBY PROPERTY BERHAD Invest Malaysia 2018One-on-One... · merger of Kumpulan Sime Darby Bhd, Kumpulan Guthrie Bhd and Golden Hope Plantations Bhd • Sime Darby Property, SP

31

38%

62%

Open Market RSKU / Statutory

Launches in YTD FY18Launches in FY17

66%

34%

Open Market RSKU / Statutory

Note: As at 14 Jan’18, units launched excludes land plots

Total Units Launched: 1,708Total GSV Launched: RM1.23bn

Key Rumah Selangorku (RSKU) / Statutory Launch:

Serunai, Bandar Bukit Raja 1 (570 units)

Breakdown of Launches in FY17 & YTD FY18

Total Units Launched: 2,726Total GSV Launched: RM1.25bn

Key Rumah Selangorku (RSKU) / Statutory Launch:

Harmoni 1, Putra Heights (1,700 units)

Page 32: SIME DARBY PROPERTY BERHAD Invest Malaysia 2018One-on-One... · merger of Kumpulan Sime Darby Bhd, Kumpulan Guthrie Bhd and Golden Hope Plantations Bhd • Sime Darby Property, SP

6,323.2

264.7 Minority Interest

Equity Debt Cash

9,645.4

264.7 Minority

Interest

9,910.1 1,168.9 1,232.5

Equity Debt Cash

Capital Structure Overview

As at 30 June 2017

Pro-forma Capital Structure

Maturity Period of Indebtedness (30 Jun 2017)

RM million

Total = RM 1,168.9 million

230.2

450.1

308.4

180.2

Within 1 year 1-2 years 3-5 years More than 5 years

RM million

32

20% 39% 26% 15%

Actual Capital Structure

6,587.9 1,168.9 1,075.3

Gross D/E Ratio: 18%Net D/E Ratio: 1%

Gross D/E Ratio: 12%

Page 33: SIME DARBY PROPERTY BERHAD Invest Malaysia 2018One-on-One... · merger of Kumpulan Sime Darby Bhd, Kumpulan Guthrie Bhd and Golden Hope Plantations Bhd • Sime Darby Property, SP

Financial Position as at 30 September 201733

* Includes Cash held under Housing Development Accounts

Long-term Borrowings

79%

Short-term Borrowings

21%

Total Borrowings

RM1,100mnTotal Borrowings

RM7,150mn

RM1,100mn RM1,048mn

Equity Debt Bank balances,deposits and

cash*

Capital Structure

15%Gross

Debt/Equity Ratio

Note: Debt excluded liabilities associated with assets held for sale

1%Net

Debt/Equity Ratio

Page 34: SIME DARBY PROPERTY BERHAD Invest Malaysia 2018One-on-One... · merger of Kumpulan Sime Darby Bhd, Kumpulan Guthrie Bhd and Golden Hope Plantations Bhd • Sime Darby Property, SP

Dividend Policy

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.

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

34

Page 35: SIME DARBY PROPERTY BERHAD Invest Malaysia 2018One-on-One... · merger of Kumpulan Sime Darby Bhd, Kumpulan Guthrie Bhd and Golden Hope Plantations Bhd • Sime Darby Property, SP

35

5 Market Outlook

Page 36: SIME DARBY PROPERTY BERHAD Invest Malaysia 2018One-on-One... · merger of Kumpulan Sime Darby Bhd, Kumpulan Guthrie Bhd and Golden Hope Plantations Bhd • Sime Darby Property, SP

Market Trends and Outlook 36

The property sector is supported by stable economic growth, consumersentiment and loan approval rates despite potential rate hikes in the short term.

Stabilising consumer confidence to be supported by therebound in crude oil prices and a strengthening MYR

Malaysia’s GDP growth is expected to remain relativelystable at around 5.0% in line with its 2-year historicalaverage.

Source: Bloomberg and Bank Negara Malaysia

Loan approval rates in Nov’17 is at 42%, above the lowof 37% in Q1 2016 and in-line with the 2-year average of42%, indicating signs of recovery

Overnight Policy Rate is expected to increase by 25bps in2018 from the current rate of 2.95%

Historical Forecasts

0

20

40

60

80

100

Q12015

Q22015

Q32015

Q42015

Q12016

Q22016

Q32016

Q42016

Q12017

Q22017

Q32017

Consumer Sentiment Index

2.92.93.03.03.13.13.23.23.33.3

% Overnight Policy Rate

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0% GDP (Year-on-Year)

0%

20%

40%

60%

0

5,000

10,000

15,000

20,000

25,000

Jan-1

5

Mar-

15

May-1

5

Jul-

15

Sep-1

5

Nov-1

5

Jan-1

6

Mar-

16

May-1

6

Jul-

16

Sep-1

6

Nov-1

6

Jan-1

7

Mar-

17

May-1

7

Jul-

17

Sep-1

7

Nov-1

7

RM’mn Loans Applied & Loans Approved for Residential Property Purchase

Loan Approval Rate (RHS) Loans Approved Loans Applied

Page 37: SIME DARBY PROPERTY BERHAD Invest Malaysia 2018One-on-One... · merger of Kumpulan Sime Darby Bhd, Kumpulan Guthrie Bhd and Golden Hope Plantations Bhd • Sime Darby Property, SP

Market Trends and Outlook 37

Source: Bloomberg

Transaction volume hasbeen on a gradual

decline but is expectedto recover slightlyin 2018, driven by

higher launches from the

affordable segment

The housing priceindex has beenholding up well in3Q 2017 despite a

marginal year-on-yearslowdown in price growth

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

140

150

160

170

180

190

Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017

The Malaysian House Price Index

Index YoY % (RHS)

0

5,000

10,000

15,000

20,000

25,000

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

Q1 2015Q2 2015Q3 2015Q4 2015Q1 2016Q2 2016Q3 2016Q4 2016Q1 2017Q2 2017

RM mil'UnitsResidential Transaction by Volume and Value

Volume Value (RHS)

Page 38: SIME DARBY PROPERTY BERHAD Invest Malaysia 2018One-on-One... · merger of Kumpulan Sime Darby Bhd, Kumpulan Guthrie Bhd and Golden Hope Plantations Bhd • Sime Darby Property, SP

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.

Page 39: SIME DARBY PROPERTY BERHAD Invest Malaysia 2018One-on-One... · merger of Kumpulan Sime Darby Bhd, Kumpulan Guthrie Bhd and Golden Hope Plantations Bhd • Sime Darby Property, SP

Thank You

Investor Relations

Sime Darby Property BerhadCorporate Website: www.simedarbyproperty.com

Investor Relations: https://www.simedarbyproperty.com/investor-relations.html

Page 40: SIME DARBY PROPERTY BERHAD Invest Malaysia 2018One-on-One... · merger of Kumpulan Sime Darby Bhd, Kumpulan Guthrie Bhd and Golden Hope Plantations Bhd • Sime Darby Property, SP

40

6 Appendices

Slide No. Details

41-43 Ongoing and Upcoming Launches

44-45 1QFY18 Financial Highlights

46-51 Historical FY15-17 Financial Information

52-57 Additional Corporate Information

Page 41: SIME DARBY PROPERTY BERHAD Invest Malaysia 2018One-on-One... · merger of Kumpulan Sime Darby Bhd, Kumpulan Guthrie Bhd and Golden Hope Plantations Bhd • Sime Darby Property, SP

Township Project Name Type of ProductDate

LaunchedPrice Range

(RM’000)Units

Launched

Total Gross Sales Value

(RM’mn)

UnitsSold as at14 Jan’18

Take-up Rate as at 14 Jan’18

OPEN MARKET

KLANG VALLEY

Elmina WestElmina Valley 3b DSLH Jul-16 794-1,386 151 138.7 122 81%

Elmina Valley 4 DSLH Nov-16 789-1,453 278 242.6 251 90%

Elmina East

Tiana Semi-D Sep-161,880-2,200

80 165.3 70 88%

Viana DSLH Mar-171,160-2,001

67 86.5 51 76%

Serenia City Cipta 13-storey Semi-D

factoryJul-16 From 8,211 15 125.2 10 67%

Bandar Bukit Raja 2 & 3

Persada DSLH Dec-16 649-942 230 161.8 199 87%

Casira 1 DSLH May-17 682-1,012 82 61.4 54 66%

Bandar Bukit Raja 1

BR17A2 Shop office May-171,132-1,380

12 15.1 12 100%

NEGERI SEMBILAN

Bandar Ainsdale Santai DSLH Jul-16 581-846 43 29.6 22 51%

JOHOR

Bandar Universiti Pagoh

Harmoni Vista 2 DSLH Jan-17 363-496 177 68.3 132 75%

TOTAL OPEN MARKET 1,135 1094.5 923

Note: DSLH refers to double-storey link houses; All land tenures are freehold except for the development in Bandar Universiti Pagoh which is leasehold

41

RSKU / STATUTORY

Bandar Bukit Raja 1

Serunai Apartment Jan-17 180 - 250 570 134.2 124 22%

TOTAL OPEN MARKET AND RSKU / STATUTORY 1,705 1,228.7 1,047

Key Ongoing Projects in FY2017 (Jul’16 – Jun’17)

Page 42: SIME DARBY PROPERTY BERHAD Invest Malaysia 2018One-on-One... · merger of Kumpulan Sime Darby Bhd, Kumpulan Guthrie Bhd and Golden Hope Plantations Bhd • Sime Darby Property, SP

Township Project NameType of Product

Date Launched

Price Range

(RM’000)

Units Launched

Total Gross Sales Value

(RM mn)

UnitsSold as at14 Jan’181

Take-up Rate as at 14 Jan’181

OPEN MARKET

KLANG VALLEY

Bandar Bukit Raja 2 & 3

Casira 2 DSLH Jul’17 739-1,183 111 90.8 79 71%

Azira2 DSLH Jan’18 679-1,058 111 83.6 72 65%

Elmina WestElmina Green 1 DSLH Oct’17 684-1,195 187 143.5 114 61%

Liana DSLH Nov’17 1,212-2,149 72 101.7 22 31%

Bukit Jelutong Tara Semi-D Oct’17 2,009-2,626 14 32.0 10 71%

Putra Heights HT5QSingle StoreyRetail

Oct’17 933-1,326 6 6.7 1 17%

SJCC Lot 15Serviced

ApartmentNov’17 594-1,010 204 156.7 133 65%

Denai Alam Ferrea2 DSLH Nov’17 780–1,454 228 195.7 117 51%

NEGERI SEMBILAN

Chemara Hills Castilla 2 Semi-D Oct’17 1,467-1,726 34 53.4 10 29%

Bandar Ainsdale

Redup DSLH Oct’17 656-973 45 35.2 14 31%

TOTAL OPEN MARKET 1,012 899.3 572

42

RSKU / STATUTORY

Putra Heights Harmoni 1 Apartment Aug’17 170-270 1,700 353.8 689 41%

TOTAL OPEN MARKET AND RSKU / STATUTORY 2,712 1,253.1 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)

Key Ongoing Projects in YTD FY2018 (Jul’17 – Jan’18)

Page 43: SIME DARBY PROPERTY BERHAD Invest Malaysia 2018One-on-One... · merger of Kumpulan Sime Darby Bhd, Kumpulan Guthrie Bhd and Golden Hope Plantations Bhd • Sime Darby Property, SP

Township Project Name Type of product Total unitsExpected

completionEst. GDV (RM mn)

OPEN MARKET

KLANG VALLEY

KL East Quarza – Tower B Serviced apartment 254 2020 171

Elmina WestElmina Green

1b & 1cDSLH 392 2020 257

Elmina Green 2 DS shop office 11 2020 14

Elmina East G3A DS shop office 14 2019 26

Denai Alam J16 DS shop office 17 2020 21

Serenia City A2 DSLH 302 2020 166

Bukit Jelutong Phase 5 Serviced apartment 108 2019 343

NEGERI SEMBILAN

Nilai Impian Orkid DSLH 132 2020 62

JOHOR

Bandar UniversitiPagoh

Sarjana Promenade Commercial office 35 2020 33

Sarjana Promenade Commercial office 38 2021 36

Harmoni Damai DSLH 112 2020 42

TOTAL OPEN MARKET 1,415 1,171

Note: All land tenures are freehold except for the developments in Bandar Universiti Pagoh; Estimated GDV as at 31 Oct 2017

43

RSKU / STATUTORY

Elmina West Harmoni 1 Apartment 562 2022 131

TOTAL OPEN MARKET AND RSKU / STATUTORY 1,977 1,302

Key Proposed Launches 2H FY2018(Feb ’18 – Jun’18)

Target units to be launched

1,977 unitsTarget units to be launched

1,977 unitsEstimated GDV

RM1,302 millionEstimated GDV

RM1,302 million

Page 44: SIME DARBY PROPERTY BERHAD Invest Malaysia 2018One-on-One... · merger of Kumpulan Sime Darby Bhd, Kumpulan Guthrie Bhd and Golden Hope Plantations Bhd • Sime Darby Property, SP

Breakdown of External Revenue and PBIT

1QFY2018 vs 1QFY2017

REVENUE

In RM'mn 1QFY2018 1QFY2017 YoY %

Continuing Operations

Property Development 424 398 7

Property Investment 12 17 (29)

Leisure and Hospitality 28 29 (3)

Sub-total 464 444 4

Discontinuing Operation 9 13 (33)

Total Revenue 473 457 3

PBIT

In RM'mn 1QFY2018 1QFY2017 YoY %

Continuing Operations

Property Development 393 40 893

Property Investment (7) 139 (105)

Leisure and Hospitality 34 6 509

Sub-total 420 184 128

Discontinuing Operation 2 - >100

Total PBIT 422 184 129

44

Page 45: SIME DARBY PROPERTY BERHAD Invest Malaysia 2018One-on-One... · merger of Kumpulan Sime Darby Bhd, Kumpulan Guthrie Bhd and Golden Hope Plantations Bhd • Sime Darby Property, SP

Financial Highlights - First Quarter FY2018

1QFY2018 vs 1QFY2017

45

RM’mn 1Q FY2018

C o n t i n u i n g O p e r a t i o n s

RevenueRM464mn ( 4% YoY)

1QFY17: RM444mn

Segment ResultsRM101mn ( 87% YoY)

1QFY17: RM54mn

Property Development

RM115mn ( 191% YoY)

1QFY17: RM40mn

• 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

Property InvestmentRM-7mn1QFY17: RM8mn

• 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%

Leisure and Hospitality

RM-7mn 1QFY17: RM6mn

• 1QFY17 included the reversal of an impairment of property, plant and equipment of RM10mn

Gross Sales Value Unbilled Sales (As at 30 Sep’17)

Units Sold

1QFY18: 667(vs 1QFY17 : 435 units)

RM1,778mn(As at 30 Jun’17: RM1,766mn)

1QFY18: RM528mn(vs 1QFY17: RM639mn)

Page 46: SIME DARBY PROPERTY BERHAD Invest Malaysia 2018One-on-One... · merger of Kumpulan Sime Darby Bhd, Kumpulan Guthrie Bhd and Golden Hope Plantations Bhd • Sime Darby Property, SP

Historical Key Financial Metrics

FY2015, FY2016 and FY2017

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

46

2,803,023

2,564,399

2,590,737

3,253,933

3-Year

Average

2017

2016

2015

Revenue

639,270

607,926

749,076

560,809

3-Year

Average

2017

2016

2015

PATAMI

872,307

817,649

978,419

820,852

3-Year

Average

2017

2016

2015

PBIT

10%

7%

12%

10%

3-Year

Average

2017

2016

2015

ROIC

25%

38%

32%

31%

Margin

Page 47: SIME DARBY PROPERTY BERHAD Invest Malaysia 2018One-on-One... · merger of Kumpulan Sime Darby Bhd, Kumpulan Guthrie Bhd and Golden Hope Plantations Bhd • Sime Darby Property, SP

685

71%

(9)

-1%

(34)

-3%

239

25%

Operating Profit

• 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)

RM million

47

517

45%

19

2%(81), -7%

518

46%

399

68%(31)

-5%

(15)

-4%

146

25%

881 973 499

FY2015 FY2016 FY2017

Operating Profit:

(61) 5 319Share of results of associate/JV:

821 978 818PBIT:

Page 48: SIME DARBY PROPERTY BERHAD Invest Malaysia 2018One-on-One... · merger of Kumpulan Sime Darby Bhd, Kumpulan Guthrie Bhd and Golden Hope Plantations Bhd • Sime Darby Property, SP

Increase in 2017 revenue due torecognition of sale of completedinventories in ALYA KL amounting toRM112.71mn

2017 gross profit includes write down ofinventories of ALYA of RM130mn

Revenue and Gross Profit of Property Development

Projects Revenue Gross Profit

RM mn 2015 2016 2017 2015 2016 2017

Ara Damansara 334.2 223.0 434.7 64.9 18.1 58.7

Bandar Bukit Raja 833.5 331.3 215.6 287.3 150.8 86.6

Bukit Jelutong 73.8 24.8 22.8 34.1 6.1 1.2

City of Elmina: Elmina East and West

672.3 362.1 353.4 278.9 154.8 84.4

City of Elmina: Denai Alam 175.4 88.1 76.2 74.1 40.1 61.2

KL East 111.3 115.7 135.2 15.4 19.0 (0.9)

Putra Heights 91.1 51.7 133.6 6.4 19.3 9.4

Saujana Impian 18.3 45.7 31.0 3.6 9.1 6.0

Semenyih 0.3 242.3 434.0 0.2 (57.2) (11.5)

Serenia City 1.3 391.2 41.1 (2.1) (2.9) 17.4

Subang Jaya City Centre 36.3 21.8 1.2 (12.2) (1.6) (1.8)

Bandar Ainsdale 132.5 95.3 52.6 11.9 7.6 4.9

Chemara Hills 38.0 32.7 35.4 12.6 1.3 1.0

Nilai Impian 248.7 199.3 176.0 83.7 48.3 52.6

Bandar Universiti Pagoh 37.8 22.9 62.7 12.4 6.0 17.1

Taman Pasir Putih 156.7 62.8 17.8 94.7 29.5 (4.1)

Others 36.2 24.6 168.3 12.7 8.8 (69.5)

Sub-total 2,997.8 2,335.3 2,391.7 978.7 457.2 312.7

Net Operating Expenses (294.2) (311.2) (347.6)

Operating Profit (Excl. disposal gains) 684.5 146.0 (34.9)

Net Gain on Disposals 157.3 371.0 435.0

Operating Profit 841.7 517.0 400.1

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%

Higher revenue in 2016 mainly due to disposal of land of RM129mn

Lower revenue in 2016 and 2017 due tocompletion of several phases and someprojects being at the tail end of theconstruction progress

Higher revenue in 2017 due to the sale of 4 blocks of commercial office towers amounting to c.RM343.3mn

1

2

5

7

1

2

Higher revenue in 2017 due to higherconstruction completion and sale ofinventories

2017 gross profit includes write down ofinventories (RM19mn)

Higher revenue in 2016 and 2017 due todisposal of land amounting to RM242mnand RM433.95mn, respectively

Lower revenue in 2016 due to completionof several phases in 2015 and new phaseslaunched towards the end of FY2016

33

3

44

6

5

6

7

48

8• 2015: Gain on disposal of 50% equity

stake in the JV with Sunsuria(RM157mn)

• 2016: Gains on land disposal in SereniaCity (RM129mn) and Semenyih(RM242mn)

• 2017: Gain on land disposal inSemenyih (RM434mn)

8

Page 49: SIME DARBY PROPERTY BERHAD Invest Malaysia 2018One-on-One... · merger of Kumpulan Sime Darby Bhd, Kumpulan Guthrie Bhd and Golden Hope Plantations Bhd • Sime Darby Property, SP

Revenue and Gross Profit of Property Investment

Property Revenue Gross Profit

RM ‘mm 2015 2016 2017 2015 2016 2017

Wisma Zuellig, Selangor 2.0 - - 1.8 (0.2) (0.2)

Wisma Guthrie, Selangor 1.6 2.7 2.6 0.2 1.4 1.5

Oasis Square, Ara Damansara 14.0 14.0 14.0 4.5 6.3 3.9

Wisma Sime Darby, KL 19.0 19.9 19.8 0.6 1.7 2.6

SD Business Centre, Spore 15.9 18.6 4.6 12.5 15.0 3.6

SD Centre, Spore 19.9 22.1 - 16.1 17.2 -

SD Enterprise Centre, Spore 5.6 5.8 - 4.3 4.2 -

160 Dundee Street, UK 7.9 6.2 5.9 4.9 3.5 3.8

Others 6.2 5.6 7.7 7.5 7.3 7.7

Sub-total 92.1 94.9 54.5 52.3 56.5 22.9

Net Operating Expenses (61.0) (37.3) (53.8)

Operating Profit (Excl.disposal gains) (8.7) 19.1 (31.0)

Net Gains on Disposals 81.9 479.4 144.9

Operating Profit 73.2 498.5 113.8

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%

Nil contribution from Wisma Zuellig in 2016 due to expiry of the tenancy agreement in 2015.

Signed a lease agreement with Reagan in 2017

• Currently under renovation and target to be operational in May 2018

1

1

2

49

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

Page 50: SIME DARBY PROPERTY BERHAD Invest Malaysia 2018One-on-One... · merger of Kumpulan Sime Darby Bhd, Kumpulan Guthrie Bhd and Golden Hope Plantations Bhd • Sime Darby Property, SP

Revenue and Gross Profit of Hospitality & Leisure

Property Revenue Gross Profit

RM ‘mm 2015 2016 2017 2015 2016 2017

Saujana Impian Golf & County Club, Selangor

5.7 5.5 6.0 1.1 0.9 1.9

Sime Darby Convention Centre, KL 20.8 26.8 27.3 5.6 9.6 8.8

TPC Kuala Lumpur 49.4 50.2 53.9 36.8 36.4 40.6

Equatorial Hotel, Malacca 43.7 38.4 - 27.5 19.9 -

Genting View Resort, Pahang 4.4 4.4 3.0 1.1 0.2 0.2

Darby Park Serviced Residences, Margaret River, Australia

6.6 6.4 6.6 4.1 3.9 4.0

Darby Park Serviced Residences, Subiaco, Australia

7.2 5.1 - 5.3 3.7 (0.005)

Karri Valley Resort, Australia 9.0 9.3 9.5 3.6 3.7 3.6

Darby Park Executive Suites, Spore 11.0 9.3 9.3 7.7 5.9 6.3

Darby Park Serviced Residences, Vietnam

3.1 2.3 1.9 1.9 1.2 0.9

Others 3.2 2.8 0.6 0.5 0.6 0.3

Sub-total 164.0 160.6 118.2 95.2 86.0 66.6

Net Operating Expenses (128.7) (166.7) (81.5)

Operating Profit (Excl. disposal gains)

(33.5) (80.7) (14.9)

Net Gains on Disposals 0.1 38.3 0.1

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%)

Lower contribution in 2016 mainly due to the lower occupancy rate

1

1

50

In 2016, the net gains of RM38.3mn was mainly attributable to the disposal of Syarikat Malacca Straits Inn Sdn Bhd in Malacca

2

2

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Cash Flows from Operating Activities

(RM million) 2015 2016 2017 As at 30 Sep’17

Cash flow from operating activities 713.9 566.8 527.8 424

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) 535.7 602.5 (23.7)

Changes in working capital (840.8) (241.0) (21.4) (802)

Cash (used in) / generated from operations

(126.9) 325.8 506.4 (378)

Tax paid (173.2) (140.7) (135.4) 15

Zakat paid (1.0) (1.0) (1.0) -

Dividend received from a joint venture - - 119.2 -

Dividends received from associates 9.0

1.8 131.8 -

Operating cash flows (used in) / generated from continuing operations

(292.0) 185.9 621.1 (363)

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Inventories

319.5

878.5801.5 778.6

2015 2016 2017 As at Dec'17

Completed Development Unit Inventories

RM million

Inventory Turnover Period

18.4

32.3 31.8

2015 2016 2017

Months

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 2017.

• The management is currently working on the marketing strategy to sell these units.

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298.5

427.5

1113

Total Excluding East Residence Development

Page 53: SIME DARBY PROPERTY BERHAD Invest Malaysia 2018One-on-One... · merger of Kumpulan Sime Darby Bhd, Kumpulan Guthrie Bhd and Golden Hope Plantations Bhd • Sime Darby Property, SP

Strong and Dynamic Board of Directors

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

Dato' Johan Ariffin

Independent Non-Executive Director

Tengku Datuk Seri Ahmad Shah Alhaj ibni AlmarhumSultan Salahuddin Abdul

Azjz Shah Alhaj

Independent Non-Executive Director

Dato' Jaganath Derek Steven Sabapathy

Independent Non-Executive Director

Dato' Seri Ahmad Johan Mohammad

Raslan

Independent Non-Executive Director

Datuk Dr Mohd Daud Bakar

Non-Independent Non-Executive Director

Datin Norazah Mohamed Razali

Independent Non-Executive Director

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

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Page 54: SIME DARBY PROPERTY BERHAD Invest Malaysia 2018One-on-One... · merger of Kumpulan Sime Darby Bhd, Kumpulan Guthrie Bhd and Golden Hope Plantations Bhd • Sime Darby Property, SP

Qualified and Experienced Management Team

Dato' Sri Amrin Awaluddin

Managing Director

Datuk Tong Poh Keow

Group Chief Financial Officer

Strong management team with relevant experience and a proven track record in the real estate industry

54

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

Choo Suit Mae

Group General Counsel

TBA

Chief Human Resources Officer

TBA

Chief Marketing & Sales Officer

(w.e.f. 1 Mar’18)

Tang Ai Leen

Chief Risk and Compliance

Officer

TBA

Chief Group Corporate

Assurance Officer

(w.e.f. 1 Mar’18)

Page 55: SIME DARBY PROPERTY BERHAD Invest Malaysia 2018One-on-One... · merger of Kumpulan Sime Darby Bhd, Kumpulan Guthrie Bhd and Golden Hope Plantations Bhd • Sime Darby Property, SP

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

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

Darby Park Executive Suites,

Singapore

Darby Park Serviced Residences, Vung Tau,

Vietnam

Sime Darby Property Corporate Tower

Block F, Oasis Square• Occupancy rate of 92%

as at 30 Sep’17

Asset Portfolio

Property Investment, Hospitality and Leisure

Property Investment Hospitality & Leisure

RETAIL MALLS

OFFICE SPACES

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Page 56: SIME DARBY PROPERTY BERHAD Invest Malaysia 2018One-on-One... · merger of Kumpulan Sime Darby Bhd, Kumpulan Guthrie Bhd and Golden Hope Plantations Bhd • Sime Darby Property, SP

Beyond A Township Developer

~RM6bn~70% commercial

GDV

~85 acres

Oasis Autocity(Office/ Automobile

Exhibition)

Oasis Place(Serviced apartments,

retails space)

Oasis Tower (Office)

Oasis Plantation (Office)

Oasis Mall (Complex commercial)

Oasis Square (Office/ retail space/ serviced apartments)

Oasis Atelier(Retail space/ serviced

apartments)

Oasis Kyla (Serviced apartments)

(Oasis Corporate Park (1)

(Hotel/ office/ retail space/ serviced apartments)

Oasis Rio (Office/ retail space/ serviced apartments)

Oasis Gallery (Property exhibition)

Oasis Central (Office/ retail space/ serviced apartments)

(1) Parts of Oasis Corporate Park have been completed (Medalla, Centum, Meritus, and Augustus).

Transformation of Ara Damansara to a Transit Oriented & Adjacent Development

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Oasis Plantation(Office)

Oasis Square(Office/retail

space/serviced apartments)

Oasis Gallery(Property exhibition)

LRT Ara Damansara

Station

Freehold

LRT LembahSubangStation

Transforms the look and prospects of Ara Damansara, primarily a residential area by providing a much-needed commercial center

Page 57: SIME DARBY PROPERTY BERHAD Invest Malaysia 2018One-on-One... · merger of Kumpulan Sime Darby Bhd, Kumpulan Guthrie Bhd and Golden Hope Plantations Bhd • Sime Darby Property, SP

Sustainability Key Performance Indicators57

Sustainability Leadership Index Critical Sustainability Key Performance Indicators (KPIs) will guide Sime Darby Property to be a Sustainability Leader by 2020

Reducing Lost Time InjuryFrequency Rate (LTIFR) & Increasing ‘Concerned Reporting’

Increasing Lean Six Sigma (LSS) Monetary Benefits

Enhancing Global Reporting Initiative (GRI) Sustainability Reporting

Reducing Green House Gas(GHG) Emissions

Reducing Waste Generation

Protecting Water Resources

• Zero fatality• “Best in Class”• LTIFR of 1.0

• Financial savings at 1.5% of• Sime Darby Property’s revenue

KPIs Targets

• Best in class• Benchmark by other in each sector

• 100% achievement of reduction target• Exceed national expectations

• Managing waste for 6 key townships and Operating Units

• Adopt responsible water stewardship