S P Setia Bhd. · MYX:SPSETIA
S P Setia Bhd — FY2023 Earnings Presentation
35 slides from S P Setia Bhd's earnings presentation, Feb 29, 2024
Slide 1: Financial Results & Group Update
Financial Results & Group Update For the year ended 31 December 2023 29 February 2024 Sapphire by the Gardens, Melbourne
Slide 2: Macro and Sector Outlook
< Setia Macro and Sector Outlook
Slide 3: 2024 Macroeconomic Outlook
2024 Macroeconomic Outlook Improving prospects in Setia’s key markets – Malaysia, Australia and Vietnam MALAYSIA AUSTRALIA VIETNAM ▪ Expected GDP growth: 4-5% in ▪ Expected GDP growth: 1.4% in ▪ Expected GDP growth: 5.8% in 2024 (BNM) 2024 (IMF) 2024 (IMF) ▪ Household spending to be ▪ As inflation m
Slide 4: 2024 Malaysia Property Sector Outlook
2024 Malaysia Property Sector Outlook Government initiatives, policies and sectoral roadmaps shape the near-term property landscape GOVERNMENT GOVERNMENT HOMEBUYER ESG GROWTH POTENTIAL INITIATIVES POLICIES PREFERENCES CONSIDERATIONS ▪ Johor-Singapore ▪ Stamp duty ▪ Landed homes ▪ Green building ▪ FD
Slide 5: Key Highlights
< Setia Key Highlights
Slide 6: FY 2023 In Numbers
FY 2023 In Numbers We exceeded our sales target amidst a challenging market, well positioned for profit growth in FY 2024 RM5.1 bil RM836 mil RM3.56 bil RM656 mil 0.49x Surpassed sales target Land monetisation Total launches GDV Profit Before Tax Net Gearing Ratio A growth of 24% from FY Contributed
Slide 7: FY 2024 Sales Target RM4.4 bil
FY 2024 Target Targeted 5% YoY sales growth rate 6,311 acres RM5.6 bil Effective remaining Unbilled Sales landbank at December 2023 RM119.74 bil GDV of effective remaining landbank RM4.4 bil 41 FY 2024 Ongoing Projects Sales Target 7
Slide 8: 2023 Milestones
2023 Milestones We entered into collaborations to expedite and catalyse our developments while pushing into the industrial space Setia Alaman (Central) Tg Kupang (Southern) Setia Fontaines (Northern) Establish strategic Expansion into Extending footprint partnership with Industrial Development in Au
Slide 9: Financial Performance
< Setia Financial Performance
Slide 10: Key Financial Highlights
Key Financial Highlights Resilient sales growth, de-gearing on track despite economic challenges Sales Revenue PBT FY’23 : RM5.10B FY’23 : RM4.37B FY’23: RM656M (FY’22: RM4.11B) (FY’22: RM4.45B) (FY’22: RM559M) PATANCI Borrowings * Net Gearing Ratio FY’23: RM299M FY’23: RM10.1B FY’23: 0.49x (FY’22:
Slide 11: 2023 Sales Performance
2023 Sales Performance Sales growth driven by land monetisation, launch of Setia Alaman industrial park and ongoing projects Central Region contributed 61% (RM’M) to Total Sales 5-year Group Sales Performance 21% higher (RM’M) than Target (RM4.2 bil) 5,098 4,555 4,260 4,109 3,821 2023 RM5.10 billion
Slide 12: Landbank Monetisation
Landbank Monetisation Monetising non-core land with catalytic potential and collaboration opportunities Catalytic Value Potential Landbank Monetisation – FY 2023 Glengowrie, Semenyih – 500 acres Sales Land (RM'mil) Central - Bandar Setia Alam 60 Southern - Tanjung Kupang 26 305 500 acres Acres Centr
Slide 13: 2023 Revenue Performance
2023 Revenue Performance 2% YoY decline mainly due to the completion of Daintree Residence in Singapore in FY 2022 Historical Revenue Performance (RM’M) (RM’M) 4,454 4,374 3,929 3,763 3,228 Revenue 2023 RM 4.37 billion 2019 2020 2023 Malaysia contributed 75% to total Revenue 2021 2022 13
Slide 14: 2023 PBT Performance
2023 PBT Performance Central Region was the largest contributor to FY 2023 PBT (RM’M) (RM’M) Northern, (2.5), 1% Eastern, 0.8 , 0% International , 164.7 , Malaysia , 491.0 , 25% 75% Southern, 217.1 , 44% FY2023 Malaysia 656 mil RM 491mil RM PBT PBT Central, 248.5 , 50% Integrated, 27.1 , 5% Central
Slide 15: PBT and PATANCI – 5-year performance
PBT and PATANCI – 5-year performance Higher PBT in FY 2023 despite the challenging operating environment (RM’M) 656 700 598 542 559 600 500 400 344 284 304 299 300 200 100 - -100 PBT -200 -157 PATANCI -300 -321 -400 FY2019 FY2020 FY2021 FY2022 FY2023 15
Slide 16: Operational Updates
< Setia Operational Updates
Slide 17: Unbilled Sales, Land Banks and GDV
Unbilled Sales, Land Banks and GDV Unbilled Sales of RM5.64 billion is supported by 6,311 acres of effective remaining land banks with a total GDV of RM119.74 billion as at 31 Dec 2023 REMAINING LAND BANKS Unbilled Sales Eastern, 43.67 , 1% International, 34.74 , 0% GDV: RM 5.64 RM2.8 bil, 2% GDV: R
Slide 18: 41 On-going Projects (as at 31 December 2023)
41 On-going Projects (as at 31 December 2023) Wide range of product offerings to support growth 1 5 Eastern 1. Aeropod Northern 1. Setia Fontaines 2. Setia Pearl Island 3. Setia Greens 4. Setia Sky Vista 5. Setia Sky Ville 5 18 International 1. Battersea Power Station 2. Shangri-la Melbourne Hotel C
Slide 19: Launches and Take-up Rates
Launches and Take-up Rates Encouraging take-up rates for landed residential and commercial properties Central Region Setia Ecohill 2 Setia Eco Glades Setia Bayuemas Ph KP1 (NADI) BLOC 7 Ph A18 (BAYU AVENUE) Type: 2 & 3 Storey Terraced Shop Type: 2 Storey Shop Office Type: 2 Storey Shop Office Office
Slide 20: Launches and Take-up Rates (cont’d)
Launches and Take-up Rates (cont’d) Encouraging take-up rates for landed residential and commercial properties Central Region Southern Region Bandar Kinrara Setia AlamImpian Setia Tropika Ph 7A4C (IRAMA VILLA III) Ph A9-01(B) (IMPIAN PRISMA 3) Ph RC1 (CALLIANDRA) Type: 2 Storey Terraced House Type:
Slide 21: Key Investment: Setia Federal Hill
Key Investment: Setia Federal Hill 21
Slide 22: 2024 Game changer: Setia Federal Hill
2024 Game changer: Setia Federal Hill A landmark project to showcase our brand RM2.9b Total Investment 50.2 acres Total Land Size RM20.2b Overall GDV 22
Slide 23: Setia Federal Hill – Phase 1
Setia Federal Hill – Phase 1 First phase kickstarted via JV with Mitsui Fudosan RM1.4 bil 2.67acres 1,300 units Q3 2024 GDV Mixed Use 2 Residential Towers Target Launch Development Parcel 1A-A and 1A-B – 2.67 acres • Mixed Use Development comprises uses of Residential and Retail 23
Slide 24: 2024 Focus Areas
< Setia 2024 Focus Areas
Slide 25: 2024: Focus #1 Accelerate township developments
2024: Focus #1 Accelerate township developments Setia Alam (Central) Setia Eco Templer Setia AlamImpian (Central) Setia Eco Hill (Central) Bandar Kinrara (Central) Setia Tropika (Southern) 2 (Southern) Setia Eco Gardens Setia Fontaines (Northern) 5 25
Slide 26: 2024: Focus #2 Execute industrial expansion
2024: Focus #2 Execute industrial expansion Setia Alaman Tanjung Kupang Setia Fontaines Industrial 399 acres 307 acres 323 acres RM3.09b RM1.87b RM1.68b GDV GDV GDV 7 years 8 years 8 years (2024-2031) (2025-2033) (2026-2034) 26
Slide 27: Setia Alaman Industrial Park
Setia Alaman Industrial Park Perspective Setia Alaman Industrial Park - Actual aerial view Infrastructure-ready Multiple accessibility, strategic connectivity Mature township (Bukit Raja, Klang – Shah Alam) 27
Slide 28: 2024: Focus #3 Strengthen international pipeline – Australia
2024: Focus #3 Strengthen international pipeline – Australia AUSTRALIA CASH GENERATION FUTURE GROWTH Borrowings reduction Site acquisition: ▪ Project collections ▪ St Leonards; Sydney ▪ Sapphire by the ▪ Future target sites in Gardens Melbourne ▪ UNO Melbourne St Leonards, Sydney (1,374 sq m / 14,79
Slide 29: 2024: Focus #3 (cont’d) – Vietnam
2024: Focus #3 (cont’d) Strengthen international pipeline – Vietnam EcoLakes VIETNAM EcoXuan Hanoi Ecolakes Ecoxuan Binh Duong Province Ho Chi Minh City 29
Slide 30: Sustainability
< Setia Sustainability
Slide 31: Sustainability Highlights
Sustainability Highlights Across Economic, Environment and Social Pillars 31
Slide 32: Green Roadmap
Green Roadmap Setia Baseline SCOPE 3 SCOPE 3 SCOPE 3 NZCE 45% 2050 SCOPE 1 & 2 70% 12,886 Reduction by Scope 7,087 2030 Reduction by 3,866 *Subject to (as per 12th 2040 1, 2 & 3 Malaysia Plan yearly review and NETR) 2023 2030 2040 2050 * Finalizing the baseline for Scope 3 and devise the mid target
Slide 33: Summary
Summary We remain positive in our outlook for FY 2024, leveraging our financial strength and diversified portfolio to achieve our growth targets RM5.1 bil RM836 mil RM3.56 bil RM656 mil 0.49x Surpassed sales target Land monetisation Total launches GDV Profit Before Tax Net Gearing Ratio 2024 FOCUS A
Slide 34: Thank You
Setia Thank You
Slide 35: Disclaimer
Disclaimer This presentation contains certain statements which are forward-looking in nature, which are subject to uncertainties and contingencies. Forward-looking statements may contain estimates and assumptions made by Setia’s Management after due inquiry, which are nevertheless subject to known a