TAMBUN INDAH LAND BERHAD(Company No. 810446-U)
March 2016
IR Adviser
AQUILAS
Operations Review
Financial Highlights
Growth Roadmap
Investment Case
Appendix
2CONTENT
Operations Review
4
Achieved take-up rate of 81.7% on total GDV of RM1.4 billion…
OPERATIONS REVIEW
Ongoing Gross Development Value (GDV) @ 31-Dec 2015
RM1.4 bil(RM1.2 billion @ 31-Dec 14)
Average Take-up Rate@ 31-Dec 2015
81.7%(75.7% as at 31-Dec 14)
Unbilled Sales @ 31-Dec 2015
RM324.2 mil(RM427.4 million @ 31-Dec 14)
5ONGOING PROJECTS (@ 31-Dec 2015)
Straits Garden and Raintree Park 1 major contributors to revenue in 4Q15… unbilled sales of RM324.2 million to be recognized in two to three years
Projects Launched(2012 - 2013)
Type No. of Units Est. GDV (RM’mil)
Take-Up Rate Progress Unbilled Sales (RM’mil)
BM ResidenceCondominiums 108
57.7 97.4% 98.3% 1.0Landed Houses 39
Straits Garden
Business Suites 230
245.1 92.3% 74.2% 58.3Condominiums 183
Apartments 36
Low-medium cost 83
Pearl Residence
2-storey Bungalows 12
224.8 99.7% 87.7% 27.62-storey Semi-D 112
2-storey Terraces 361
Pearl Impian 2-storey Terraces 285 91.6 99.5% 90.2% 9.0
Pearl Avenue– Phase 1
2 & 3-Storey ShopOffices
100 83.2 94.1% 85.1% 11.7
Completing projects Tanjung Heights, Pearl Indah 3, Carissa Villa 6.6
Subtotal 1,549 702.4 96.2% 114.1
Continued to next page…
6ONGOING PROJECTS (@ 31-Dec 2015) (CONT’D)
Projects Launched(2014 - 2015)
Type No. of Units Est. GDV (RM’mil)
Take-Up Rate Progress Unbilled Sales (RM’mil)
Camellia Park Apartments 121 45.1 89.7% 71.9% 11.4
Permai Residence 2-Storey Homes 51 25.0 80.7% 88.9% 2.2
Pearl Harmoni 2-Storey Homes 362 151.2 96.4% 84.1% 23.1
Bukit ResidenceGated & Non-gated
Link-Homes122 72.1 83.7% 78.3% 13.1
Pearl Avenue- Phase 2
2 & 3-Storey ShopOffices
44 40.1 73.3% 55.3% 13.1
Raintree Park 1
2-storey link semi-D 112
170.3 81.7% 31.9% 94.82-storey gated terrace 170
Duplex Villas 56
Raintree Park 2
2-storey link semi-D 68
221.8 25.0% 5.3% 52.4
2-storey gated terrace 208
Duplex Villas 104
2-storey semi-D 42
2-storey bungalow 4
Subtotal 1,464 725.6 67.6% 210.1
TOTAL 3,013 1,428 81.7% 324.2
Sustained demand for affordable properties despite challenging environment…
Financial Highlights
8
Sustained profitability despite challenging environment reflects favourableproduct mix…
3-year PBT CAGR: 19.8%
REVENUE & PROFIT TRENDS
Revenue (RM ‘mil)
PBT & PATMI (RM ‘mil)
27
.0
34
.5
30
.0
36
.2
46
.8
79
.0
11
7.7
13
8.2
13
5.7
19
.6
23
.5
23
.8
25
.2
23
.4 40
.8
65
.0
10
2.1
10
1.1
FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15
PBT PATMI
97
.1
12
6.0
10
0.9
12
8.1
19
1.8
29
6.9
37
6.4
46
6.8
36
7.7
27.5%30.0%
32.0% 30.8% 31.9%34.9% 36.3%
34.4%
41.2%
FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15
Revenue Gross Margin
3-year PATMI CAGR: 35.3%
3-year Revenue CAGR: 7.4%
Note: Compounded Annual Growth Rate (CAGR) is over the period 2012-2015
9
Robust balance sheet with minimal net gearing… higher borrowings to finance potential landbank expansion
(1) Based on 424.15 mil (2014: 420.78 mil) ordinary shares of RM0.50 each
Unaudited As at Audited As at 31-Dec-15 31-Dec-14
Non-Current Assets 365.2 325.4 Addition in investment properties & JV investment
Current Assets 410.3 336.3 Strong cash balance and higher property development costs
Current Liabilities 172.8 140.5 From higher ST borrowings and trade/other payables
Non-Current Liabilities 140.3 121.9 In line with borrowings for earlier land acquisition
Shareholders’ Equity 459.8 397.0 Issuance of new shares due to exercise of ESOS and conversion of warrants
Non-Controlling Interest 2.7 2.4 -
Borrowings (ST + LT) 188.4 153.0 Additional borrowings for land acquisition
Cash & Bank Balances 183.9 138.1
Net Gearing Ratio (x) 0.01x 0.04x
Net Tangible Assets / Share (RM) (1) 1.08 0.94
Return on Average Shareholders Equity 23.6% 28.9%
Return on Average Total Assets 14.1% 17.6%
(RM’ mil) Comments
BALANCE SHEET
15
5
22
3
31
0
39
7
46
0
78 84 98
15
3 18
8
39
96 1
26
13
8 18
4
FY11 FY12 FY13 FY14 FY15
Shareholders Equity Gross Borrowings Cash & Bank Balances
Net Gearing 0.25
Net Cash
Net Cash
Net Gearing 0.04
Net Gearing 0.01
10
4.63.8
5.36.6
9.7
3.0
FY10 FY11 FY12 FY13 FY14 FY15
Dividend Per Share (sen)
10
.2
11
.8 17
.3 26
.8
41
.0
12
.7
40.3%
50.3%
42.4% 41.3% 40.1%
FY10 FY11 FY12 FY13 FY14 FY15
Dividend Payout (RM’ mil)
Dividend Paid To be paid Payout Ratio
Progressive dividend policy that pays 40% to 60% of net profit… paid first interim dividend of 3 sen per share in respect of FY15
* Change of Dividend Policy: 40% to 60% of net profit excluding any valuation gain or loss on investment properties# First interim dividend of 3 sen/share (paid on 18.2.16)
DIVIDEND HISTORY
#
*
Growth Roadmap
12
Developments strategically located near developed infrastructure…
Projects Timeline to completion
Land size (acres)
Est. GDV (RM’mil)
Ongoing(launched)
Current to 2018 169.78 1,428.0
Future Projects
2016-2020 441.60 3,429.2
Investment purposes
2015-2020 63.39 -
TOTAL 674.77 4,857.20
PROJECT PROFILE BY LOCATION
13PIPELINE PROJECTS
Pipeline of RM3.4 billion GDV to sustain growth momentum… launching RM364 million in 2016
Projects TypeExpected
commencement
Est. GDV
(RM’ mil)
Avenue Garden@ Pearl City
Apartments 4Q15/1Q16 95.0
Pearl Tropika@ Pearl City
2-Storey Homes 2016 146.0
Pearl Saujana – Phase 1@ Pearl City
Residential units 2016 102.7
Pearl 28 @ Pearl City
Residential units 2016 20.0
Pearl Saujana – Phase 2@ Pearl City
Residential units 2017 87.5
Central Avenue@ Pearl City
2- & 3-Storey Shop
Offices2017 82.1
Camellia Park – Commercial Commercial units 2017 4.0
Alma (TBC) Residential units 2017 48.0
Kota Permai (TBC) Residential units 2018 200.0
Pearl City – Other Phases Residential units 2017-2020 2,643.91
TOTAL 3,429.21
14
Building up recurring income stream… sustain growth through strategic landbanking
GROWTH STRATEGIES
To identify and expand strategic landbank in and outside Penang to sustain growth
• To leverage on township development experience and duplicate success in potential landbanks
• To fully utilize the group’s balance sheet when opportunities arise for landbanking
To establish recurring income stream through investment properties
• Recurring income from GEMS International School commenced since September 2015; Pearl City Mall slated to open in mid-2016
• To further develop and promote Pearl City Business Park to enhance recurring income stream
Continue to innovate in product offerings to enhance profitability
• To further establish the brand name of Tambun Indah as a quality developer with innovative products at affordable prices
• To fully capitalize on the group’s existing landbank
Investment Case
16VALUATION
1 Based on 424.366 mil shares 2 Based on NTA per share of RM1.083 Based on FY14 Dividend of 9.7 sen per share
Proxy to the rapid development in Mainland Penang…
Share price @ 3-March 2016 RM1.38
Market Cap @ 3-March 2016 1 RM585.6 mil
PE ratio 5.8x
Price to book ratio 2 1.3x
FY14 Dividend Yield 3 7.0%
17
Attractive proxy to the fast-growing Mainland Penang property market...
► Respected brand name in the Penang property market with an established track record as an innovative and quality developer
► Strong growth catalysts in Penang that will continue to spur property demand, boosted by foreign direct investment and infrastructure projects
Tambun Indah is a good proxy to the Penang Second Bridge’s economic impact, with its iconic Pearl City township development
► Earnings growth to be sustained by existing and pipeline projects of about RM4.9 billion supported by aggressive landbanking to diversify outside of Penang if the opportunity arises
► Committed to creating shareholders’ value by constantly seeking market re-rating
Dividend policy* of 40% to 60% of net profit excluding any valuation gain or loss on investment properties for the financial year
INVESTMENT MERITS
* Effective financial year ended 31 December 2015 (FY2015)
THANK YOU
IR Contacts:
Mr. Steve Neoh T: 04-3240088 [email protected]
Mr. Terence Loo T: 03-27111391 / 012-6295 618 [email protected]
Disclaimer:
Any information, details, views or opinions presented in this presentation are solely for your benefit and may not be disclosed in whole or in part by youto anyone. Any information, details, views or opinions presented in this presentation are subject to change without notice. Our company accepts noliability for the contents of this presentation, or for the consequences of any actions taken on the basis of the information provided.
Appendix
20
ⁱBased on weighted average no. of ordinary shares of RM0.50 each during each period
4Q15 4Q14 Change RM'000 FY15 FY14 Change
91,050 110,086 (17.3%) Revenue 367,651 466,841 (21.2%)
37,788 38,802 (2.6%) Gross Profit 151,418 160,560 (5.7%)
41.5% 35.2% 6.3 pt Gross Margin 41.2% 34.4% 6.8 pt
39,315 35,131 11.9% PBT 135,744 138,242 (1.8%)
43.2% 31.9% 11.3 pt PBT Margin 36.9% 29.6% 7.3 pt
30,347 25,878 17.3% PATMI 101,117 102,141 (1.0%)
33.3% 23.5% 9.8 pt Net Margin 27.5% 21.9% 5.6 pt
7.16 6.24 14.7% Basic EPSⁱ (sen) 23.92 25.20 (5.1%)
Favourable sales mix and maintained cost-efficiency sustained profitability despite fewer project launches in FY15…
INCOME STATEMENT
78.3
82.6 97.1 118.4
112.0
128.0
116.8
110.1 130.4
60.0 86.2
91.1
FY2013 – FY2015 (RM ’mil)
11
.7
14
.0 17
.2 22
.1 25
.3
25
.4
25
.5
25
.9 29
.9
17
.1 23
.8 30
.3
FY2013 – FY2015 (RM ’mil)
Quarterly Group Revenue Quarterly Group Net Profit
21
FY15 achieved 81.7% take-up rate… new launches and ongoing projects to drive sales
Total Total
(RM’ mil) (RM’ mil)
Raintree Park 1 (@ Pearl City) Dec-14 254 126.2 26 12.9
Raintree Park 2 (@ Pearl City) Dec-15 115 55.4 - -
Pearl Harmoni (@ Pearl City) Apr-14 49 21.9 302 123.8
Pearl Residence (@ Pearl City) Dec-12 21 12.5 100 55.5
Pearl Avenue 2 (@ Pearl City) Dec-14 11 10.0 - -
Straits Garden Oct/Nov-12 75 9.1 29 11.5
Bukit Residence May-14 14 8.8 89 51.5
Pearl Impian (@ Pearl City) Dec-12 10 4.0 33 11.9
Carissa Villas Apr/Oct-12 4 3.2 15 12.8
BM Residence Aug-12 6 3.1 11 5.9
Kelisa Residence Nov-11 5 2.8 8 3.4
Permai Residence Mar-14 5 2.7 38 17.6
Pearl Indah 3 (@ Pearl City) Apr-12 2 1.2 27 15.7
Dahlia Park Nov-10 2 0.9 - -
Pearl Avenue – Phase 1 (@ Pearl City) Apr-13 1 0.7 19 16
Pearl Square 2 (@ Pearl City) Nov-11 1 0.5 - -
Capri Park Jun-11 1 0.4 8 4.3
Pearl Avenue – Phase 2 (@ Pearl City) Dec-14 - - 24 19.4
Camellia Park Mar-14 - - 111 40.4
Past Completed Projects - - 43 26.4
TOTAL 576 263.4 883 429.0
Project Name
Total No. of
Units sold in
FY14
Launch
Date
Total No. of
Units sold in
FY15
FY15 SALES OVERVIEW
22
Rental income from GEMS International School commenced in September 2015…
RM’ mil% Group
RevenueRM’ mil
% Group
Revenue
Property Development & Management
Pearl City launches:
- Pearl Villas - - 22.28 4.8%
- Pearl Indah 1, 2 & 3 13.56 3.7% 30.04 6.4%
- Pearl Square 1 & 2 0.53 0.1% 10.85 2.3%
- Pearl Residence 34.17 9.3% 89.74 19.2%
- Pearl Impian 8.28 2.3% 50.88 10.9%
- Pearl Avenue 1 & 2 24.34 6.6% 44.30 9.5%
- Pearl Harmoni 69.71 19.0% 52.87 11.3%
- Raintree Park 1 43.67 11.9% 0.67 0.1%
- Raintree Park 2 2.95 0.8% - -
Tanjung Heights 2.91 0.8% 5.36 1.2%
Dahlia Park 1.74 0.5% 3.83 0.8%
Juru Industrial Park 2.63 0.7% 5.18 1.1%
Capri Park 7.69 2.1% 5.58 1.2%
Carissa Villas 5.83 1.6% 16.49 3.5%
BM Residence 10.01 2.7% 21.63 4.7%
Straits Garden 77.34 21.0% 57.30 12.3%
Camellia Park 19.66 5.3% 9.45 2.0%
Permai Residence 7.11 1.9% 10.86 2.3%
Bukit Residence 31.40 8.5% 15.83 3.4%
Impian Residence - - 0.52 0.1%
Sales of land & Property Management 0.41 0.1% 9.10 2.0%
Sub Total 363.93 99.0% 462.76 99.1%
Other Revenue
Construction, Rental, Carparks, etc 3.73 1.0% 4.08 0.9%
Total 367.65 100.0% 466.84 100.0%
`FY14FY15
• Pearl City developments made up53.6% of FY15 group revenue
• Compared to 64.6% of FY14revenue
• Revenue recognition from RaintreePark 2 still at initial stages
• Steady billings anticipated fromStraits Garden, Raintree Park 1 &2, and Pearl Residence in FY2016
REVENUE ANALYSIS BY PROJECT
• Investment Properties
• GEMS International School,Mainland Penang’s firstinternational school recentlycommenced operations inSeptember 2015
• Pearl City Mall slated to becompleted in first half of 2016(1H16)
Corporate Profile
24
An established reputation for developing modern, relatively affordable projects... pioneering many firsts in Mainland Penang
Founded in 1994, Tambun Indah is reputable in Mainland Penang for high-quality, modern design projects at relatively affordable prices
Many of our developments are enjoying full take-up rates & high prices in secondary home market
Pioneered Penang’s first-ever gated & guarded landed community – Taman Tambun Indah (launched in 1994)
Also unveiled Seberang Prai’s first strata-landed gated community, Palm Villas (launched in 2007)
Has launched approximately 8,100 units with total GDV of approximately RM3.1 bil since inception
Now developing the first integrated township in Mainland Penang at Simpang Ampat, Pearl City
Iconic flagship with an estimated GDV of RM4.7 bil
Slated for completion by 2020
Tambun Indah was included in FORBES ASIA’s 200 “Best Under a Billion” list for 2013, 2014 and 2015
BACKGROUND
25
Combined approved manufacturing investments of more than RM30.0 billion since 2010 [Source: MIDA]
Significant domestic and foreign direct investments (DDI and FDI) include:
Aviatron Boon Siew Honda VAT Phison Electronics Bose Malaysia Automotive Lighting Haemonetics Corporation Hewlett Packard Seagate Sandisk Corporation Inari Amertron VITROX Corporation Shared Services Hub (MOU with Temasek):
o Business Process Outsourcingo Penang International Technology Park
Expansion of Batu Kawan Industrial Park to generate new manufacturing activities & employment opportunities
Tourism and medical tourism seen as future growth drivers, complemented by proposed Premium Outlet and theme park
Penang Second Bridge to spur further economic growth by improving transportation network
Penang economy increasingly robust... strategies in place to keep the momentum going
PENANG GROWTH CATALYSTS
26POPULATION SHIFT
Pearl Garden (Launched 2009)
Increasing movement from Penang Island to Mainland spurred by growing job opportunities, improved transportation network and relatively more affordable homes
External migration drawn by Penang’s economic success
Mainland Penang property market has seen an increased influx of buyers from the island as well as out-of-state buyers…
28%
26%25%
4%
17% Penang Island
Seberang Perai Selatan
Seberang Perai Tengah
Seberang Perai Utara
Others
37%
13%14%
9%
27%
Pearl Residence (Launched 2013)
27
Pearl City Mixed Development in
Simpang Ampat; Seberang Perai Selatan
To gain complete exposure and benefit from completion of Penang Second Bridge
Upon completion, Pearl City will be a well-integrated city complemented with:
• Public amenities• Recreation facilities• Healthcare facilities• Retail amenities• >15,000 residential
housing units
Pearl City with locations of impending and existing developments
Pearl City: Group’s flagship development to meet growing demand for residential properties in Mainland Penang…
PEARL CITY
28
Pearl City 5-min drive from North-South Highway
15-min to 20-min drive from 1st & 2nd
Penang bridges; and
1-min drive from Electrified Double Track Commuter Train station
Strategically located near existing and future transportation infrastructure…
PEARL CITY TRANSPORT INFRASTRUCTURE
29
Pearl City
12 industrial parks located within a 15km radius from the project
These include: Prai Industrial Estate Penang Science Park Bukit Minyak Industrial Estate Bukit Tengah Industrial Estate Batu Kawan Industrial Park
Surrounding industrial parks capable of generating abundant employment opportunities
Well-placed to tap into the existing and future industrial developments in Mainland Penang…
PEARL CITY CATCHMENT AREA