39
Glomac Berhad 110532-M Menara Glomac, Glomac Damansara, Jalan Damansara, 60000 Kuala Lumpur, Malaysia. T +603.7723 9000 F +603.7729 9000 W www.glomac.com.my CORPORATE PRESENTATION June 2014
Glomac Berhad 110532-M Menara Glomac, Glomac Damansara, Jalan Damansara, 60000 Kuala Lumpur, Malaysia.
T +603.7723 9000 F +603.7729 9000 W www.glomac.com.my
CORPORATE PRESENTATION
June 2014
2
CONTENT
Executive Summary
Review of 9M FYE Apr 2014 Financial Results
Sales & Progress Billings
Update on Projects
Summary & Conclusion
3
Overview
Founded by Tan Sri Dato’ FD Mansor and Datuk Richard
Fong in 1988
• Listed on the Main Board of Bursa Malaysia in June 2000
Helmed by Datuk Seri FD Iskandar as Group Managing
Director / Chief Executive Officer
Over 2 decades of solid record in developing innovative
residential & commercial properties
Properties worth over RM4bn handed over to-date
• Klang Valley / Greater Kuala Lumpur focus
4
Financial Snapshot
0
20
40
60
80
100
120
Profit Attributable to Owners' of the Company RMmil
0
200
400
600
800
Revenue RMmil
FY ‘10 FY ‘09 FY ‘11 FY ‘12 FY ‘13 FY ‘14
(9-mth)
FY ‘09 FY ‘10 FY ‘11 FY ‘12 FY ‘13 FY ‘14
(9-mth)
345 317
597 652 681
502
32 41
63
85
102
86
5
Financial Snapshot
0
200
400
600
800
1,000
Unbilled Sales RMmil
0
2
4
6
8
Net Dividend Per Share (Sen)
FY ‘09 FY ‘12 FY ‘11 FY ‘10 FY ‘13 FY ‘14
(9-mth)
4.4 4.5
6.4 6.8
5.9
FY ‘09 FY ‘10 FY ‘11 FY ‘12 FY ‘13 FY ‘14
(9-mth)
364
588 550
731
888 792
Glomac Berhad 110532-M Menara Glomac, Glomac Damansara, Jalan Damansara, 60000 Kuala Lumpur, Malaysia.
T +603.7723 9000 F +603.7729 9000 W www.glomac.com.my
RESULTS REVIEW
9M FYE Apr 2014
7
9M FY14 Financial Results
1 attributable to equity holders of the company
^ Based on weighted average share base of 723.1m for 9M FY14 and 683.0m for 9M FY13
FYE Apr
(RM mil)
9M
FY14
9M
FY13 % chg
3Q
FY14
3Q
FY13 % chg
Revenue 501.8 445.3 +12.7 183.7 159.9 +14.9
Gross profit 144.0 134.0 +7.5 51.3 48.1 +6.7
Pre-tax profit 118.9 104.5 +13.8 35.5 37.0 -4.1
Net profit 1 86.0 70.3 +22.3 22.7 25.4 -10.6
Net EPS (sen)^ 11.9 10.3 +15.5 3.1 3.5 -11.4
Gross margin 28.7% 30.0% - 27.9% 30.1% -
Pre-tax margin 23.7% 23.5% - 19.3% 23.1% -
8
Financial Highlights
9M FY14 revenue +12.7% to RM501.8m sustained by
• Lakeside Residences and Saujana Rawang
• Tail-end of Glomac Damansara and Glomac Cyberjaya 2
• New projects Glomac Centro and Reflection Residences
are beginning to contribute
PBT rose 13.8% to RM118.9mil
• Construction progress at ongoing projects
• RM15m gain from sale of Australian investment at
associate level registered in 2Q FY14
9M FY14 PAT up 22.3% to RM86.0mil
• Net EPS of 11.9sen; Annualised net EPS of 15.9sen
• Corresponding P/E of 6.8x at RM1.08 share price
9
Financial Highlights
PBT margin maintained at 23.7% at 9M FY14 stage
• 3Q FY14 margin impacted by higher construction materials
and labour cost, and new land conversion premium rates in
Saujana Rawang
Net gearing is at a comfortable 24%
• Ample capacity to acquire additional landbank
• Recently bought 62.6 acres in Bandar Saujana Utama for
RM23mil (RM8.44 per sq ft) cash
Net assets per share of RM1.21
• RM1.08 share price represents 11% discount
Proposed interim dividend of 2.25 sen per share (single tier)
• Matching the 3 sen less tax at 25% previously
Glomac Berhad 110532-M Menara Glomac, Glomac Damansara, Jalan Damansara, 60000 Kuala Lumpur, Malaysia.
T +603.7723 9000 F +603.7729 9000 W www.glomac.com.my
SALES &
PROGRESS BILLINGS
11
9M FY14 New Sales At RM368mil
Sales Summary (RM mil) 3Q FY14 9M FY14 9M FY13
Lakeside Residences 9 18 63
Glomac Centro 12 88 62
Reflection Residences @
Mutiara Damansara 19 28 89
Bandar Saujana Utama 10 66 108
Saujana Rawang 33 117 127
Glomac Damansara
Residences 3 8 23
Glomac Cyberjaya 2 0 3 31
Others 19 40 16
105 368 519
Modest performance; impacted by recent measures
• RPGT re-introduced, withdrawal of DIBs, net income
calculation for mortgage, etc
12
Strategic Decision To Defer
Selected Launches
Fine-tuning pricing strategy and costing for some projects
• Including assessing GST impact
Anticipate improved visibility and outlook for property
demand once market adjusts to tightening measures
• Expect consolidation to last another 6 to 12 months
Revised launch dates
• Phases 6 & 7 of Lakeside Residences and Saujana KLIA
township in FY15
• Centro V in CY15/16
FY14 sales guidance revised to RM500mil
13
Unbilled Sales At RM792m
*Unbilled sales is net of minority interest in projects with < 100% equity interest
Summary Of Projects 31 Jan 2014 (RM mil)
Launched GDV
(RM mil)
Overall Take-Up Rate (%)
Unbilled Sales*
Lakeside Residences 264 97 125
Glomac Damansara 527 96 72
Glomac Cyberjaya 2 133 60 17
Glomac Centro 381 74 236
Reflection Residences @
Mutiara Damansara * 286 94 113
Bandar Saujana Utama 1,550 100 41
Saujana Rawang 604 92 148
Sri Saujana, Johor 491 96 40
Total 4,236 792
Glomac Berhad 110532-M Menara Glomac, Glomac Damansara, Jalan Damansara, 60000 Kuala Lumpur, Malaysia.
T +603.7723 9000 F +603.7729 9000 W www.glomac.com.my
PROJECTS UPDATE
15
Strong Greater
KL Presence
16
Projects Enjoy Excellent
Connectivity
17
RM7.7 billion Future GDV
Summary Of Projects 31 Jan 2014 (RM mil)
Total GDV
(RM mil)
Remaining GDV
(RM mil)
Estimated Launches
FY14
Est. GDV Beyond
FY14
Lakeside Residences 2,809 2,545 - 2,545
Glomac Damansara 980 453 - 453
Glomac Centro 638 257 - 257
Bandar Saujana Utama 1,680 130 35 95
Saujana Rawang 1,200 596 277 319
Sri Saujana, Johor 696 205 55 150
Glomac Cyberjaya 218 95 - 95
Glomac Cyberjaya 2 238 105 - 105
Others 390 388 - 388
18
RM7.7 billion Future GDV continued
Summary Of Projects 31 Jan 2014 (RM mil)
Total GDV
(RM mil)
Remaining GDV
(RM mil)
Estimated Launches
FY14
Est. GDV Beyond
FY14
New Projects
Saujana Utama 4 800 800 - 800
Saujana KLIA 1,200 1,200 - 1,200
Plaza Kelana Jaya,
Phase 4 300 300 - 300
PPKS (newly acquired) 300 300 - 300
Kulaijaya, Johor
(newly acquired) 700 700 700
19
20
Overall Development Clubhouse
Phase 3, Symphony - Facade Symphony – Living room
21
Flagship project with sizeable GDV of at least RM2.5bn
• 200 acres leasehold land acquired for RM77m
Prime location in close proximity to Puchong’s thriving
commercial hub
Serviced by
KESAS and LDP
2 new LRT stations (Ampang extension line) targeted for
completion in 2014
22
RM229m worth of properties successfully launched in FY13
(Phases 2 to 4)
• Take-up at 97% with remaining unsold comprising a handful
of Bumi units
Targeted launch of 153 units of 2-storey link houses under
Phases 6 & 7 with GDV of RM120m in FY15
• Fine-tuning pricing and costing
• Ongoing improvements to surrounding infrastructure to
improve pricing power and saleability in future
23
24 Main Lobby
Facade
25-storey Office Tower
Glomac Damansara
25
356 units in two 26-storey tower blocks with estimated GDV of
RM285m
Overall take-up has improved further to 96%
• Delivery of vacant possession in April
Final phase of Glomac Damansara comprising boutique retail
mall with GDV of RM375m
• Earmarked for en-bloc sale on tenanted basis to capture better
value
• Actively engaging with potential tenants in anticipation of
completion in CY15
26
27
Steady Demand
Affordable township development in Rawang continues to
enjoy encouraging demand
• Egrata comprising 122 units 2-storey link houses (22’ x 75’)
with GDV of RM58m launched in June last year is fully sold
• Saujana Square shop-offices with RM64mil GDV also 100%
sold
Egrata – Exterior
28
New Phases
• Alcedo in November 2013
• 50 units of Semi-Ds with GDV of RM51m
• Ardea – 50 units of 2-storey link houses
under Phase 1 with GDV of RM26m
• 2nd Phase to comprise another 68 units
Aquila Phase slated for 1Q FY15
• 124 units of 2-storey link houses with
preliminary GDV estimate of RM63m
Alcedo – 2.5 storey Semi-D
Alcedo – 2 storey Semi-D
29
Prime PJ Location
30
Healthy Take-Up
For Phase 1
Take-up of Phase 1 with estimated GDV of RM381m at 75%
Centro V
Centro V (Phase 2) now
scheduled for FY15 launch
• 394 units serviced apartments
valued at RM214m
• Layout will focus on smaller
units with sizes ranging from
600 to 1,100 sq ft
• 18 units 2-storey shop office with
GDV of RM43m
31
32
299 units freehold serviced apartments
in a 39-storey block with estimated
GDV of RM286m
Take-up is at a solid 94%
Meaningful bottomline contribution
expected from FY15 onwards
• Building works are now in full swing
33
New Acquisition in
Kulaijaya, Johor Bahru
Project Location
Approx. 6km from
Lagenda Putra
34
New Acquisition in
Kulai Jaya, Johor Bahru
New acquisition by Glomac in Kulaijaya, Johor Bahru. Land size of about
174 acres with an indicative GDV of RM700mil.
Exciting new township which is within the Iskandar Region, development
will focus on the affordable segment.
This acquisition spreads Glomac’s presence in Johor Bahru on top of the
current Sri Saujana, Kota Tinggi project that has an indicative GDV of
RM700mil.
35
New Acquisition
Sungai Buloh, Selangor
36
New Acquisition in the
District of Kuala Selangor
Glomac bought 6 pieces of land for RM23mil in Sungai Buloh which totals
to about 62.6 acres with an indicative Gross Development Value of
RM300mil
The new acquisition is within Glomac’s thriving Bandar Saujana Utama
(BSU) township
The acquisition is Glomac’ overall strategy to extend the BSU township
which has matured over 15 years, and is now well established with a
hypermarket, shopping mall, shop offices and has more than 65,000
residents.
Glomac Berhad 110532-M Menara Glomac, Glomac Damansara, Jalan Damansara, 60000 Kuala Lumpur, Malaysia.
T +603.7723 9000 F +603.7729 9000 W www.glomac.com.my
SUMMARY & CONCLUSION
38
Continued Focus On
Landed Products In FY15
Earnings prospects for next 12 months anchored by high unbilled
sales of RM792m
• Confident of delivering improved net earnings in FY14
More modest FY14 sales target of RM0.5bn
• Short-term market consolidation due to cooling measures
• Strategic decision to push launches (Lakeside Residences, Saujana
KLIA, Centro V) into FY15
Key launches to resume in FY15 and we are continuously adding to
future GDV
• Recent acquisition of 62.6 acres in Bandar Saujana Utama will add
indicatively another RM300m to future GDV
• Another new acquisition in Kulaijaya, Johor. 174 acres with an
indicative GDV of RM700m
Target to match FY13’s net dividend of 4.9 sen/share
• Proposed interim dividend of 2.25 sen/share (single-tier)
Glomac Berhad 110532-M Menara Glomac, Glomac Damansara, Jalan Damansara, 60000 Kuala Lumpur, Malaysia.
T +603.7723 9000 F +603.7729 9000 W www.glomac.com.my
THANK YOU
Q & A Session
IMPORTANT DISCLAIMER
The information in this report has been prepared for general circulation based on internal sources available at
the time of issue of this report and opinions are subject to change without notice. This report may contain
forward looking statement and forecasts, which are based on the assumptions that are subject to
uncertainties. This report is prepared solely for information purposes only and not to be construed as a
solicitations for contracts. The Company accepts no liability whatsoever for any direct or consequential loss
arising from the use of this document.
