Corporate Update 1Q FY2014 Financial Results 9 May 2014
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
Corporate Snapshot SHARE INFORMATION 3% 10-Yr RCULS : RM76.3m Share price RM1.59 Nominal value outstanding* Issued Capital (shares) 1,365.6m of RM1 each Warrants (2009/2019)* 154m convertible @ Market capitalisation RM2,171 million RM1 each Listing Main Board, Bursa Malaysia * as at 17 March 2014 Major shareholder Tan Sri Dato’ Danny Tan (70.5%) FYE 31 DECEMBER 2013 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
1Q FY2014 Financial Review
1Q FY14 Financial Snapshot FYE Dec 31 1QFY14 1QFY13 % chg FY13 RM m Revenue 299.1 305.3 -2.0% 1,475.5 PBT 24.8 66.8 -62.9% 503.6 PATMI 7.8 43.8 -82.3% 362.3 Net EPS ^ 0.7 5.5 -87.3% 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 797.1 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
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
Net Gearing Manageable At 0.54x Net assets per share of RM1.90 FYE Dec 31 Mar 31 Dec 31 % chg RM m 2014 2013 Increase in non current assets Non Current Assets 4,555.7 3,567.7 +27.7% and liabilities due to completion Current Assets 1,937.5 1,858.0 +4.3% of Tropicana Aman acquisition Total Assets 6,493.2 5,425.7 +19.7% Improvement to net gearing on Current Liabilities 1,326.4 883.1 +50.2% the cards with sizeable land disposals signed Non Current Liabilities 2,341.9 1,808.6 +29.5% Partial sale of Tropicana Total Liabilities 3,668.3 2,691.7 +36.3% Aman land to EcoWorld for RM471m Shareholders’ Equity 2,824.9 2,734.0 +3.3% Sale of Jalan Bukit Bintang Total Equity & Liabilities 6,493.2 5,425.7 +19.7% land for RM448m Net Gearing (x) 0.54 0.55 Net Asset / Share 1.90 2.32 7
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 Sale Gross Book Value Landbank Sold Acquired Acres Price Status Proceeds (RM/psf) (RM/psf) (RM m) SPA signed, Tropicana Aman * 2013 308.72 18 35 471 pending completion SPA signed, Jalan Bukit Bintang, KL 2012 3.14 1,609 3,280 448 pending completion SPA signed, Jalan Kia Peng, KL 2012 1.45 1,338 2,100 132 pending completion Subtotal 1,051 * Partial disposal 8
Partial Disposal Of Tropicana Aman Sale of land at Tropicana Aman (previously known as Tropicana Canal City), Selangor to Eco World Development Group Berhad 308.72 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 308.72 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
Sale Of Bukit Bintang Land JV With Agile Property Holdings For Future Upside Sale of 3.138 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
Location of Bkt Bintang Land 11
Recent Transactions In The Vicinity Subject Land 12
Sales & Projects Update
New Sales Of RM395m in 1Q FY14 >2,000 RM m 2,160 Sales Summary 1QFY14 FY13 (RM m) Tropicana Grande 10 237 Tropicana Avenue 12 236 967 Tropicana Cheras 14 64 395 347 Tropicana Gardens 10 338 Tropicana Metropark 34 281 2011 2012 2013 1Q2014 2014 Tropicana Heights 102 - 1Q2014 New Sales Breakdown Others 36 145 Tropicana Danga Bay 60 259 2% 24% Tropicana Danga Cove 15 59 Penang World City 21 497 55% 218 Macalister 73 - 19% Tropicana Landmark 8 44 GRAND TOTAL 395 2,160 Central Southern Northern East Malaysia 14
Record Unbilled Sales At RM2.4bn Unbilled Sales (RM m) Unbilled sales sustained at high of RM2.4bn As At 31 Mar 2014 Provides earnings visibility for FY2014/2015 Tropicana Gardens 449 Tropicana Metropark 275 RM m Tropicana Cheras 43 2,388 Tropicana Grande 16 2,214 2,183 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 490 218 Macalister 76 Tropicana Landmark 28 Total 2,388 15
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 FY14 Launch To Date FY2014 To Be RM m Estimated FY14 Target Launch Launch Value Take-up Rate Launched Launches Period (RM m) (%) Tropicana Heights 646 1Q&3Q 2014 270 84% 376 Tropicana Aman 770 2H 2014 - - 770 Tropicana Gardens 429 2H 2014 - - 429 Tropicana Danga Bay 217 2H 2014 - - 217 Tropicana Danga Cove 122 2H 2014 - - 122 Penang World City 528 2H 2014 - - 528 218 Macalister 320 1Q 2014 320 39% - GRAND TOTAL 3,032 590 2,442 16
Property Development Central Region / Greater KL
Projects At A Glance - Central Region 18 18
Development Summary - Central Region Mar 2014 Previous Overall Remaining FY14 Projects Summary Interest Total GDV Launched Sales GDV as at Launches (RM m) GDV @ Mar 2014 Mar 2014 Tropicana Avenue 100% 600 600 82% - - Tropicana Cheras 100% 240 240 87% - - Tropicana Gardens 70% 2,679 635 88% 429 2,044 Tropicana Metropark 100% 7,165 830 41% - 6,335 Tropicana Heights 100% 1,726 - - 646 1,456 New Projects The Residences 100% 1,150 - - - 1,150 Tropicana Aman 100% 13,000 - - 770 13,000 Casa Damansara 3 100% 135 - - - 135 Others 100% 430 - - - 430 GRAND TOTAL 27,125 2,305 1,845 24,550 19
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
Tropicana Heights – Phase 1 Maiden launch of terrace houses with total estimated GDV of RM646m in 2014 Launched Phase 1 in Feb 2014 289 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 2014 21
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 2013 84% take-up rate 22
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