OSK Holdings Bhd 29 th Annual General Meeting Financials 31 - PowerPoint PPT Presentation

OSK Holdings Bhd 29 th Annual General Meeting Financials 31 December 2018 30 April 2019

Disclaimer • This presentation/document (“presentation”) has been prepared by OSK Holdings Berhad and its subsidiaries (“OSK Group”) . All information contained in this presentation is published for reference only. Expressions of opinion, forecasts or intentions contained herein are subject to change without notice and should not be taken as advice or obligations of the OSK Group. The information in this presentation may differ or be contrary to the opinions or recommendations expressed by other business areas of the OSK Group as a result of using different assumptions and criteria. • The information contained herein is obtained in good faith from sources believed to be reliable. This document does not purport to contain all of the information that may be required to evaluate and should not be relied on in connection with any potential transaction. Neither the OSK Group nor any of its affiliates makes any representation or warranty, express or implied, as to the accuracy or completeness of the information contained in this presentation and any liability therefore (including in respect of direct, indirect or consequential loss or damage) is expressly disclaimed. • All rights are hereby reserved. The contents of this presentation are confidential and accordingly may not be reproduced or copied to any unauthorized persons or incorporated into another document or other materials without the prior written consent of the OSK Group. 2

Financials Highlights Option 2 of Divider Slide. You may use this or any one of the following title slides at your discretion. Please remove this text box when using the template.

Financial Performance Highlights Change RM million 2018 2017 Change (%) Revenue 1,204 1,169 35 3 Profit Before Tax 395 485 (90) (18) Share of Profits 237 182 55 30 Profit After Tax 352 404 (52) (13) Profit After Tax & 346 400 (54) (13) Non-controlling interests Earnings per share (sen) 16.66 19.27 (2.61) (13) ROE 7.6% 9.1% 4

Core Performance Highlights Change RM million 2018 2017 Change (%) Core Profit Before Tax 302 254 48 19 Core Profit After Tax 270 197 72 36 Non-Core Profit After Tax 82 207 Total Profit After Tax 352 404 (52) (13) Core Profit After Tax & 264 194 70 36 Non-controlling interests Core Earnings per share (sen) 12.72 9.34 3.38 36 * Core Profits exclude: FY2017: FY2018: • RM178 million (PBT & PAT) gain on deemed disposal arising from RM93 million (PBT) / RM82 million (PAT) gains the dilution of equity interest in a subsidiary company in Melbourne, on disposals of Swiss-Garden Hotel Kuala Australia and realisation of foreign currency translation gains; and Lumpur and Garden Lodge in Sydney, Australia. • RM53 million (PBT) / RM50 million (PAT) gain on fair valuation of investment properties. • RM21 million (PAT) reversal of deferred tax assets for projects 5

5 Years Revenue, Reported PBT & Core PBT PBT Revenue RM ‘mil RM ‘mil 700 1,400 1,306 1,204 600 1,200 605 1,169 500 1,000 485 400 800 758 395 300 600 321 302 276 255 200 226 400 216 204 100 200 60 - - 2014 2015 2016 2017 2018 6 Reported PBT Core PBT Revenue

Financial Performance by Segments Financial Construction Industries Hospitality Property Services ▪ Building ▪ Cables ▪ Hotels and ▪ Property ▪ Capital Resorts Development Financing ▪ Civil ▪ Industrialised ▪ Vacation ▪ Property ▪ Investment Building Club System (IBS) Investment Holding and Management Revenue 60% 6% 1% 24% 9% Core 34% 56% 4% 9% (3%) PBT 7

4 Years Segmental Revenue & PBT Segmental Revenue Segmental PBT RM ‘mil RM ‘mil 120.7 1,200 570 13.7 112.4 106.6 11.0 378.3 30.3 • Negative goodwill: 1,000 470 PH & PJD acquisitions 230.7 • RHB Rights Issue • Gain on deemed • FV gain on IP disposal: YPC • FY gain on IP 93.4 800 370 824.8 • Gain on disposal 45.6 53.8 720.8 of PPE: hotels • FV gain on IP 12.6 688.8 12.1 • Impairment of PPE 7.1 600 270 12.0 104.2 8.1 78.3 144.6 6.2 537.5 26.0 400 170 88.7 25.6 33.3 9.7 169.3 293.0 149.8 200 298.3 289.3 70 113.7 103.8 113.8 (9.6) (13.0) (11.2) 54.3 66.8 39.8 48.1 - (30) 2015 2016 2017 2018 2015 2016 2017 2018 8

Financial Position Highlights Change RM million 2018 2017 Change (%) Total Assets 8,093 7,903 190 2 Cash and Cash Equivalents 529 425 104 24 Total Liabilities 3,423 3,296 127 4 Borrowings 2,475 2,267 208 9 Net Debts 1,946 1,824 122 7 Shareholders’ Funds 4,597 4,539 58 1 Net Gearing Ratio (times) 0.42 0.40 0.02 5 Net Assets per share RM2.21 RM2.19 RM0.02 1 9

5 Years Net Assets per Share, Shareholders’ Funds, Total Assets & Total Liabilities 10

Segments Assets and Liabilities 11

Property Development Option 2 of Divider Slide. You may use this or any one of the following title slides at your discretion. Please remove this text box when using the template.

Major Projects – Malaysia GDV: RM 715 mil GDV: RM 275 mil GDV: RM 660 mil Take-up-rate: Take-up-rate: Take-up-rate: 93% 77% (Phase 1)​ & 15% (Phase 2) 71% (Pastura )​ & 70% ( Astera) GDV: RM 280 mil GDV: RM 380 mil Take-up-rate: 77% Take-up-rate: 83% GDV: RM 250 mil Take-up-rate: 95% 13

Melbourne Square – Phase 1 Launched in June 2017 GDV : RM2.8 bil (AUD945mil) Take-up rate : 65% Featuring : • 1,054 units apartment • 3,700 sqm of landscaped urban park • 3,960 sqm (NLA) full-concept Woolworths • 1,800 sqm (NLA) other retail incl F&B etc. • 1,600 sqm (NLA) childcare center 14

Melbourne Square – Phase 1 3 completion and hand-over stages to early realize cashflow : Stage 1 457 apartment units & landscaped park - End 2019 - Est GDV : RM910mil Stage 2 419 apartment units - Mid 2020 - Est GDV : RM1.05bil Stage 3 178 apartment units Retail - End 2020 - Est GDV : RM870mil 15

Sales, Unbilled GDV and Unsold GDV RM ‘mil 1,800 1,600 1,600 1,540 1,410 1,400 1,344 510 576 1,200 1,100 1,099 1,030 485 956 1,000 226 119 326 748 800 358 67 600 400 200 - 2017 2018 Year Completed Melbourne Launched GDV Sales Unbilled sales Unsold GDV units Square 16

Land Bank (Malaysia & Australia) Klang Valley Landbank 1,732 acres • 31 acres • Est. GDV: Est. GDV RM 11.3 billion RM 4.0 bil N. Sembilan • 456 acres GDV ( RM‘bil ) • Est. GDV: Pahang, RM0.3bil, RM 2.1 bil 3% Kedah Negeri • 1,221 acres Sembilan, • Est. GDV: RM2.1bil RM 2.0 bil Penang, 19% You City III, Cheras RM0.7bil Penang 6% • 15 acres • Est. GDV: RM 0.7 bil Kedah, Klang Valley, RM2.0bil RM4.0bil Pahang 18% 35% • 6 acres • Est. GDV: RM 0.3 bil Australia, RM2.2bil Australia 19% • 2.5 acres • Est. GDV: RM 2.2 bil Harbour Place, Butterworth 17

Property Investment Option 2 of Divider Slide. You may use this or any one of the following title slides at your discretion. Please remove this text box when using the template.

Property Investment Office Retail Office & Retail Plaza OSK Atria Shopping Gallery Faber Towers Jalan Ampang, KL Damansara Jaya Taman Desa, KL Land area 1.32 acres (FH) Land area 5.47 acres (FH) Land area 2.63 acres (FH) NLA 236,000 sqft NLA 458,000 sqft NLA 481,000 sqft Occupancy rate 89% Occupancy rate 92% Occupancy rate 69% - 96% NBV (fair value) RM155mil NBV (fair value) RM320mil NBV (fair value) RM93mil 19

Financial Services Option 2 of Divider Slide. You may use this or any one of the following title slides at your discretion. Please remove this text box when using the template.

Financial Services – Capital Financing • Licensed moneylender governed Loan Portfolio under the Moneylenders Act 1951 (Act 400). • Provision of short term corporate and personal loan • Financing for Initial Public Offerings, ESOS, private placements, general offers, rights issues • Bridging finance for Small Medium Enterprises (SME) and acquisition of assets • Minimal non-performing loan (NPL) • Portfolio size of over RM570 million as at 31 December 2018 Estimate Ratio of 2014 2015 2016 2017 2018 NPL 2.10% 2.30% 0.40% - - 21

Financial Services – Strategic Investment RM ‘mil Dividend Income from RHB • Arose from the merger 60 80 between OSK Investment 54 71 Bank and RHB via share 70 50 swap in 2012 57 60 • OSK is the third largest 40 48 shareholder in RHB Bank 50 at 10.13% equity interest. 30 40 26 30 20 15 20 10 10 0 0 2013 2014 2015 2016 2017 2018 DRP CASH 22

Industries Option 2 of Divider Slide. You may use this or any one of the following title slides at your discretion. Please remove this text box when using the template.