Sime Darby Property Townhall

Transcription

1 Sime Darby Property Townhall 6 August

2 01 Past Performance

3 FY2008/09 PERFORMANCE (YOY) Turnover PBIT Margin -2.0% +8.0% +3.0% +7.5% -30.2% -7.6% -30.3% -35.5% -3.7% FY07/08 (or adjusted to FY08/09 quarterly result) FY08/09 (or latest quarterly result) 3

4 FY2008/09 PERFORMANCE (YOY) Turnover PBIT Margin -2.0% +8.0% +3.0% -15.3% -57.2% -28.7% +32.5% +3.4% -7.7% FY07/08 (or adjusted to FY08/09 quarterly result) FY08/09 (or latest quarterly result) 4

5 FY2008/09 SUCCESS STORY 1. Parade of Homes POH1 POH2 POH3 Duration 7 Days 30 Days 90 Days Sales Value RM248 mil RM141 mil RM1,012 mil Units ,670 5

6 FY2008/09 SUCCESS STORY (Cont ) 2. Portfolio Asset Management Monetising & Redeployment of Capital Profit = RM 77 mil Wisma Consplant I & II 6

7 FY2008/09 SUCCESS STORY (Cont ) 3. Synergy Targeted: RM76.94 million C2 : RM 7.1 mill Reduction in VO Realised: RM92.33 million! 7

8 FY2008/09 SUCCESS STORY: Our People 8

9 FY2008/09 SUCCESS STORY: In the News 9

10 02 Division Strategy

11 2008 PROPERTY MARKET: Residential (Primary Market) 1. Lower Transactions -3.4% Newly Launched Units -51.4% Transaction volume 2. Weak Prices -6% High Rise -1.8% Overall House Prices Note: The overall performance of the property market covering secondary markets improved from previous year. Source: Market Sector Analyst, Property Market Report 2008

12 2009 PROPERTY MARKET OUTLOOK 1. Transactions to further ease in 2009 Transaction Volume For Newly Launched in 1Q09 vs 4Q08 In line with projected GDP -32% 2. Property prices to soften High end condominium in Kuala Lumpur -4.0% to -5.0% Overall residential prices -30% to -40% 3. Margin to be under pressure Property developers compete for a shrinking market -5% to -10% Attractive financing package and zero entry cost Source: Market Sector Analyst/Property Consultant/Bank Negara Malaysia High end prices in 1Q09 has `dropped by 20% vs peak price in 2Q08

13 PROPERTY STRATEGIC DIRECTION Vision: Leading Creator/Builder of Sustainable Communities Goals: RONFE and PBUIIT growth > 15% Top brand Sustainability champion Where we will play: How we will win: Enablers : PD through increased premium and balanced product mix AM improve property and business returns Master and Synergistic Designer Maximize value of landbank with cutting edge community and realty conceptualization and commercialization Hospitality improve property and business returns Leading Developer Customer focused innovative offer and superior project management Focus performance on Malaysia and opportunistic International positioning Leading Asset Manager World class tenancy and yield manager, and marketing Customer-focused operating model: Customer-focused offer; Strategy-led org. structure Dynamic landbank management: Systematic utilization of SD s landbank to maximize value World class operations: Best-in-class practices to improve profitability & asset turnover High performance culture: Value-led performance management and KPIs IT Enabled Organisation: Information system to enhance decision making process Source: Sime Darby Property/MD/Strategy & Business Devt 13

14 PROPERTY STRATEGIC DIRECTION (Cont d) Vision Leader In Building Sustainable Communities Mission To be a leader in developing sustainable communities, delivering value to our stakeholders from environmental, social and economic perspectives Strategic Direction To achieve yearly PBIT growth of 15% and RONFE of 15% target to achieve by FY12/13 To achieve No.1 brand position and top brand name in the industry To be a leader in building sustainable communities To diversify income stream (geographical & across value chain expansion) and to become an integrated property player To achieve 80:20 profit ratio of PD:PI To achieve 80:20 profit ratio of Local : Overseas Vision Goals Where we will play Leader in building/ creating How sustainable we will win communities Enablers Visio Vision Goals Where we will play Leading builder/creator of sustainable communities How we in Asia will Pacific win Enablers Beyond 2018 Explore new n frontiers Goals Where we will (e.g. integrated How play property company we will with Enable win independent rs businesses) 14

15 DIVISION STRATEGY 1. Leading Community Developer Focus on strengthening the core developing sustainable communities/futures Build self-sustaining township, combine best of residential, commercial and retail developments Develop new Trend Setting Products (prototype product) Develop Cost Efficient Product (using Building Information Modeling and Industrial Building System technology) 2. Sustainability Champion Strengthening and Sustaining Strong Brand Name in Sustainable Development Sustainable Initiatives (R&D Village & Idea House) 3. Asset Optimization Asset Portfolio Management Strategy (monetizing high value asset and redeployment of capital) Strengthen Asset Turnover / Expedite New Developments (Sale/JV development) 4. Growth Strategy Business Expansion Malaysia New Townships (Ampar Tenang, Elmina, Lagong) & Re-planning (BJCC) Overseas Venture China (New Township) Australia (Hospitality) Singapore (High-Rise Development) Strategic Projects Sime Darby Vision Valley (Selangor & Negeri Sembilan Vision City) Master Developer Concept 15

16 DIVISION STRATEGY (Cont d) Aeropolis, Sports, Education, Healthcare, Entertainment & Tourism Cluster To invite pension funds and strategic investors to participate in asset ownership Opportunistic Expansion Acquiring undervalued assets, projects and companies (Property Development, Property Investment and Hospitality portfolio) Enter into JV with reputable and strong financial partners for expansion 5. Transformation Strategic Transformation and driving Operational Efficiency Talent Development and Motivational Reward & Recognition 6. Branding To be the No 1 brand in the Property Industry Communicating Brand Essence, Brand Value & Brand Positioning to stakeholders. To retain top brand position in property industry (Malaysian Most Valuable Brand) and to win property industry awards (The Edge, FIABCI Malaysian Chapter) CRM : Providing service that exceeds customers expectations at every touch point. 16

17 03 MPlan Financial Year 2009/2010

18 MPLAN FY2009/10: OUR PROMISE TURNOVER : RM2,456 mil PBIT : RM500 mil RONFE : 10% Teamwork is the ability to work together toward a common vision. The ability to direct individual accomplishments toward organizational objectives. It is the fuel that allows common people to attain uncommon results." - Andrew Carnegie, a powerful businessman and a leading force in the American steel industry. 18

19 FINANCIAL TARGETS FY09/10 * 19

20 FINANCIAL KPIs Financial KPIs (RM m) FY09/10 FY10/11 FY11/12 FY12/13 External Turnover 2,456 2,525 3,915 4,689 PBIT RONFE 10% 10% 14% 14% Profit contribution ratio - Property Dev. and Property Inv. Profit contribution ratio - Local and Oversea 20

21 MPLAN FY2009/10: Expansion Plan To expand and to tap the Group s Strategic and Distressed Asset Fund Property Development Property Investment /Hospitality Asset Acquisition in UK China (BEDA & MCECDA) Hospitality JV Singapore (High Rise) Hospitality JV 21

22 REVISED PROFIT CONTRIBUTION FROM EXPANSION PLAN CY 10/11 PY 2 10/11 PY 3 11/12 PY 4 12/13 PBIT - MPLAN PBIT Expansion Plan ,004 Profit contribution ratio - Property Development and Property Investment Profit contribution ratio - Local and Oversea 22

23 RONFE TARGET MPLAN FY09/10 vs Expansion Plan Exceed target RONFE 23

24 FY2009/10 KEY MILESTONE FY2009/10 Property Development SDVV & BANDAR GEMILANG COMPLETION OF IDEA HOUSE & LAUNCHING OF R&D VILLAGE TO RETAIN TOP PROPERTY BRAND Q LASSIC R&D Initiatives LAUNCH OF ELMINA EAST LAUNCH OF PROJECT IN WEIFANG Property Investment/ Asset Management /Hospitality/ Leisure ASSET ACQUISITION IN UK LAUNCH OF DARBY PARK BRAND TOP 10 GOLF COURSE IN MALAYSIA KLGCC : NO 1 GOLF CLUB IN ASIA ASSET MANAGEMENT TO REGISTER WITH BOARD OF VALUERS, APPRAISERS AND ESTATE AGENTS HOSPITALITY JOINT VENTURE Others PROJECT EPS PILOT IFCA LAUNCH VMR e-procurement VALUE ENGINEERING CRM SINGLE CONTACT CENTRE CUSTOMER FEEDBACK SYSTEM 24

25 04 Moving Forward

26 SIME DARBY DIVISIONAL HQs OASIS ARA DAMANSARA BLOCK 5D Sime Darby Plantation 26

27 SIME DARBY WORLD HQ The Concept The Twin Towers: 23 Storey Office Block 15 Storey Office Block 4 Storey Podium Block 6 level underground car parks with the capacity of 3,100 parking bays An adjoining Surau Gross floor area: 1,616,679 sf Nett Lettable Area: 1,197,954 sf Wings in Flight Eagle in the Sky The concept used in formulating the design to symbolise and reinforce the Sime Darby brand. The building has an S shape design to symbolise and reinforce the Sime Darby Brand. Preferred gold façade has been chosen to convey wealth and heritage of the current Sime Darby head office. 27

28 SUBANG JAYA CITY CENTRE 28

29 SUSTAINABLE DEVELOPMENT 29

30 05 Ensuring Performance Sustainability (EPS) Project - Division Balanced Scorecard 30

31 TOWNSHIP CONTRIBUTION 31

32 TOWNSHIP CONTRIBUTION-MPLAN FY2009/10 Township Revenue PBIT Bukit Jelutong RM439m RM191m Putra Heights RM219m RM47m Denai Alam RM186m RM43m Ara Damansara RM186m RM44m Bandar Bukit Raja RM185m RM35m 32

33 TOWNSHIP CONTRIBUTION-MPLAN FY2009/10 Township Revenue PBIT Nilai Impian/Utama RM111m RM24m Melawati RM101m RM19m USJ Heights/ Pinggiran USJ RM73m RM12m Elmina RM28m RM18m UEP Subang Jaya RM16m RM3m 33

34 TOWNSHIP CONTRIBUTION-MPLAN FY2009/10 Township Revenue PBIT Planter Haven RM15m RM0m Saujana Impian RM0m RM0m Special Sales RM95m RM26m 34

35 Questions & Answers 35

36 Thank you 36