2
On Track To Fulfil Our Transformation Strategy
Record unbilled sales of RM2.4bn provides strong earnings visibility
RM3.0bn new launches in FY14, targeting sales of above RM2bn
> 40% new launches in landed residential products; stronger bias towards Greater KL and Penang markets
Manageable net gearing of 0.54x. De-gearing initiatives to further strengthen balance sheet
Sustain growth momentum with continuing focus to unlock value through development activities and land sales
To Be A Premier Property Group In Malaysia
3
Corporate Snapshot
FYE 31 DECEMBER 2013
Revenue RM1,475.5 (+134.1%) Net Gearing 0.55x
PBT RM503.6m (+123.9%) Total Assets RM5,425.7m
PAT/MI RM362.3m (+111.7%) Net Assets / share RM2.32
PBT margin (%) 34.1% ROA (%) 6.7%
Net EPS * 34.3sen ROE (%) 14.1%
Gross DPS 4.5sen (interim)
* Based on weighted average share base of 1,056m shares
* as at 17 March 2014
SHARE INFORMATION
Share price RM1.59
Issued Capital (shares) 1,365.6m of RM1 each
Market capitalisation RM2,171 million
Listing Main Board, Bursa Malaysia
Major shareholder Tan Sri Dato’ Danny Tan (70.5%)
3% 10-Yr RCULS : Nominal value outstanding*
RM76.3m
Warrants (2009/2019)* 154m convertible @ RM1 each
Financial results of corresponding quarter in FY13 incorporated land sale revenue of RM126m and PBT gain of RM43.3m
Adjusting for the impact of land disposal for comparison purposes
1QFY14 revenue was up 66.9%
1QFY14 PBT was 5.5% higher
1QFY14 net EPS at 0.7 sen
5
1Q FY14 Financial Snapshot
FYE Dec 31RM m
1QFY14 1QFY13 % chg FY13
Revenue 299.1 305.3 -2.0% 1,475.5
PBT 24.8 66.8 -62.9% 503.6
PATMI 7.8 43.8 -82.3% 362.3
Net EPS ^ 0.7 5.5 -87.3% 34.3
PBT margin 8.3% 21.9% 34.1%
PATMI margin 2.6% 14.3% 24.6%
^ Based on weighted average share base of 1,192.8 m shares for 1Q FY14 and 797.1 m shares for 1Q FY13
1QFY14 revenue growth underpinned by
Construction progress at key ongoing projects
• Tropicana Cheras, Tropicana Avenue, Tropicana Danga Bay (Tropez) & Tropicana Gardens
• Newer project, Tropicana Metropark also beginning to contribute
Consolidation of Tenaga Kimia Sdn Bhd as a subsidiary from May 2013 onwards
Modest increase in 1QFY14 PBT (ex-land sales) due to higher finance cost and administrative overheads
PBT margin expected to improve in subsequent quarters
Higher finance cost being addressed through aggressive ongoing de-gearing initiatives
Improved absorption of administrative overheads once construction progress at key ongoing projects reach a more advanced stage
6
Review of 1Q FY14 Financial Results
Net assets per share of RM1.90
Increase in non current assets and liabilities due to completion of Tropicana Aman acquisition
Improvement to net gearing on the cards with sizeable land disposals signed
Partial sale of Tropicana Aman land to EcoWorldfor RM471m
Sale of Jalan Bukit Bintangland for RM448m
7
Net Gearing Manageable At 0.54x
FYE Dec 31RM m
Mar 312014
Dec 312013
% chg
Non Current Assets 4,555.7 3,567.7 +27.7%
Current Assets 1,937.5 1,858.0 +4.3%
Total Assets 6,493.2 5,425.7 +19.7%
Current Liabilities 1,326.4 883.1 +50.2%
Non Current Liabilities 2,341.9 1,808.6 +29.5%
Total Liabilities 3,668.3 2,691.7 +36.3%
Shareholders’ Equity 2,824.9 2,734.0 +3.3%
Total Equity & Liabilities 6,493.2 5,425.7 +19.7%
Net Gearing (x) 0.54 0.55
Net Asset / Share 1.90 2.32
8
Raising Another RM1.05bn Through Land Disposals
Landbank Sold Acquired AcresBook Value
(RM/psf)
SalePrice
(RM/psf)Status
Gross Proceeds (RM m)
Tropicana Aman * 2013 308.72 18 35SPA signed,
pending completion471
Jalan Bukit Bintang, KL 2012 3.14 1,609 3,280SPA signed,
pending completion448
Jalan Kia Peng, KL 2012 1.45 1,338 2,100SPA signed,
pending completion132
Subtotal 1,051
* Partial disposal
RM339m raised in FY13
RM1.05bn signed and pending completion at this stage
Including partial sale of Tropicana Aman and sale of Jalan Bukit Bintang land
Sale of land at Tropicana Aman (previously known as Tropicana Canal City), Selangor to Eco World Development Group Berhad
308.72 acres for a total cash consideration of RM471m or RM35 per sqft
S & P is dated 19 March 2014; completion targeted in 2H2014
Out of the 1,172 acres, net developable area is approximately 749 acres of which 308.72 acres is sold pursuant to this proposed disposal
Transaction will give rise to net gain of approximately RM170m
Estimated incremental net EPS of 12 sen to FY14 earnings
9
Partial Disposal Of Tropicana Aman
Sale of 3.138 acres in Jalan Bukit Bintang, KL for RM448.4m or approximately RM3,280 per sq ft To Offshore Triangle Sdn Bhd (“JV Co”)
Expect completion in 1H FY15
JV Co is 70:30 owned by HK-listed Agile Property Holdings Ltd (“Agile”) and Tropicana respectively Strategic alliance with Agile allows Tropicana to also enjoy development upside
Land earmarked for mixed commercial development
Able to leverage on each other’s expertise and track record in property development for mutual benefits
Development will be marketed through Agile’s network
Strategic partnership with Agile will also further enhance Tropicana’s brand presence and visibility across regional markets including China, Hong Kong and Macau
Sales to raise net proceeds of about RM245m
Transaction will give rise to estimated gain of RM145m; incremental net EPS of 11 sen
10
Sale Of Bukit Bintang LandJV With Agile Property Holdings For Future Upside
14
New Sales Of RM395m in 1Q FY14
Sales Summary (RM m)
1QFY14 FY13
Tropicana Grande 10 237
Tropicana Avenue 12 236
Tropicana Cheras 14 64
Tropicana Gardens 10 338
Tropicana Metropark 34 281
Tropicana Heights 102 -
Others 36 145
Tropicana Danga Bay 60 259
Tropicana Danga Cove 15 59
Penang World City 21 497
218 Macalister 73 -
Tropicana Landmark 8 44
GRAND TOTAL 395 2,160
1Q2014 New Sales Breakdown
RM m
347
967
2,160
395
>2,000
2011 2012 2013 1Q2014 2014
55%
19%
24%
2%
Central Southern
Northern East Malaysia
1,071
1,647
2,214 2,183 2,388
1QFY13 2QFY13 3QFY13 4QFY13 1QFY14
Unbilled sales sustained at high of RM2.4bn
Provides earnings visibility for FY2014/2015
15
Record Unbilled Sales At RM2.4bn
Unbilled SalesAs At 31 Mar 2014 (RM m)
Tropicana Gardens 449
Tropicana Metropark 275
Tropicana Cheras 43
Tropicana Grande 16
Tropicana Avenue 343
Tropicana Heights 103
Others 89
Tropicana Danga Bay 443
Tropicana Danga Cove 33
Penang World City 490
218 Macalister 76
Tropicana Landmark 28
Total 2,388
RM m
Targeting FY2014 new sales of more than RM2.0bn
Greater focus on landed residential and township developments
Maiden launch at Tropicana Heights well received
Tropicana Aman target for launch in 2H 2014
16
Planned Launches Of RM3.0bn in 2014
RM m Estimated FY14 Launches
Target Launch Period
FY14 Launch To DateFY2014 To Be
LaunchedLaunch Value(RM m)
Take-up Rate(%)
Tropicana Heights 646 1Q&3Q 2014 270 84% 376
Tropicana Aman 770 2H 2014 - - 770
Tropicana Gardens 429 2H 2014 - - 429
Tropicana Danga Bay 217 2H 2014 - - 217
Tropicana Danga Cove 122 2H 2014 - - 122
Penang World City 528 2H 2014 - - 528
218 Macalister 320 1Q 2014 320 39% -
GRAND TOTAL 3,032 590 2,442
Mar 2014Projects Summary (RM m)
Interest Total GDVPrevious Launched
GDV
OverallSales
@ Mar 2014
FY14 Launches
Remaining GDV as at Mar 2014
Tropicana Avenue 100% 600 600 82% - -
Tropicana Cheras 100% 240 240 87% - -
Tropicana Gardens 70% 2,679 635 88% 429 2,044
Tropicana Metropark 100% 7,165 830 41% - 6,335
Tropicana Heights 100% 1,726 - - 646 1,456
New Projects
The Residences 100% 1,150 - - - 1,150
Tropicana Aman 100% 13,000 - - 770 13,000
Casa Damansara 3 100% 135 - - - 135
Others 100% 430 - - - 430
GRAND TOTAL 27,125 2,305 1,845 24,550
19
Development Summary - Central Region
199 acre freehold mixed development in residential hotspot Kajang with total estimated GDV of RM1.7bn
Mixed development comprising bungalows, semi-detached, superlink, terrace, condo, serviced apartment, resident’s clubhouse & commercial development within a gated enclave
20
Central Region - Tropicana Heights
Maiden launch of terrace houses with total estimated GDV of RM646m in 2014
Launched Phase 1 in Feb 2014
289 units 2 to 3-storey terrace houses with total GDV of RM270m
Average pricing of RM870,000 with built-up from 2,135 sq ft to 3,344 sq ft
Strong response with take-up of 84% to-date
Target to launch cluster homes and terrace houses with total GDV of RM376m in 3Q 2014
21
Tropicana Heights – Phase 1
Mixed residential and commercial development on 17.6 acres in Kota Damansara with total estimated GDV of RM2.7bn
Proximity to Dataran Sunway MRT station
Arnica Serviced Residences with GDV of RM230m fully sold
BayBerry Serviced Residences with GDV of RM405m launched in Apr 2013
84% take-up rate
22
Central Region – Tropicana Gardens
Launching Tower 3 in 2H 2014
Total GDV of RM429m
Comprising 406 units serviced apartments with size ranging from 600sq ft to 1,399 sq ft
23
Tropicana Gardens
Tower 3
Tropicana Aman (previously known as Tropicana Canal City)
Sold 308 net developable acres to EcoWorld for RM471m cash
Remaining 440 net developable acres with potential GDV of RM13bn
Target to launch landed properties with an estimated GDV of RM770m in 2H 2014
Tropicana Aman will solidify Tropicana’s presence in Klang Valley
Incorporating the Group’s development DNA, emphasising on innovative concepts and its trademark features on space and greeneries
24
Central Region - Tropicana Aman
Flanked by major expressways
Nearby developments include Kota Kemuning, Putra Heights and up and coming Bukit Rimbayu
25
Tropicana Aman
Prime Location With Excellent Connectivity
Creating a vibrant and unique self-contained community incorporating
Healthy Lifestyle
Green , Sustainable Architecture and Township
Community Living in a safe environment
27
Tropicana Aman - Masterplan
30
Development Summary – Southern Region
Mar 2014Projects Summary (RM m)
Interest Total GDVPrevious Launched
GDV
Overall Sales @ Mar 2014
FY14Launches
Remaining GDV as at Mar 2014
Tropicana Danga Bay 60% 8,370 1,180 64% 217 7,190
Tropicana Danga Cove 50% 12,140 432 22% 122 11,708
Future Projects
Tropicana City Centre 100% 3,602 - - - 3,602
Tropicana Danga Lagoon 100% 2,500 - - - 2,500
TDB Hotel & Residences 60% 1,336 - - - 1,336
Tropicana Gelang Patah 100% 6,440 - - - 6,440
Senibong Waterfront 70% 3,673 - - - 3,673
GRAND TOTAL 38,061 1,612 339 36,449
Mixed integrated development on 37 acres in Iskandar Malaysia with total estimated GDV of RM8.4bn
31
Southern Region - Tropicana Danga Bay
Tropez Residences, high-end condominium project
Comprising 3 Tower Blocks with total GDV of RM685m launched in 1QFY12
94% take-up rate; non-bumi units fully sold
Bora Residences, 6 towers of serviced residences with approximately 2,200 units
Part of master development which includes 8 acres of recreational space, diverse range of facilities and the proposed Danga Bay Shopping Mall
Launched Tower 1 in Oct 2013
• 396 units of serviced apartments with estimated GDV of RM495m
• Current take-up of 44%
Planning launch of Tower 2 in 2H 2014
• 118 units of serviced apartments with estimated GDV of RM217m
33
Tropicana Danga Bay
Mixed integrated development on 227 acres in Iskandar Malaysia with total estimated GDV of RM12.1bn
Oasis 1 & 2, comprising 290 units of 3 to 4-storey shop offices with GDV of RM432 million
Overall take up of 36% with Oasis 1 fully taken up
Planning launch of Oasis 3 in 2H 2014
62 units of 3 to 4-storey shop offices with total estimated GDV of RM122m
34
Southern Region - Tropicana Danga Cove
37
Development Summary - Northern Region
Mar 2014Projects Summary(RM m)
Interest Total GDVPrevious Launched
GDV
Overall Sales @ Mar 2014
FY14 Launches
Remaining GDV as at Mar 2014
Penang World City 55% 10,086 620 93% 528 9,466
Tropicana 218 Macalister 100% 320 - - 320 -
GRAND TOTAL 10,406 620 848 9,466
Integrated waterfront city on 102.6 acres freehold land with total estimated GDV of RM10.1bn
Strategically located at the gateway of Penang Island
38
Northern Region - Penang World City
Tropicana Bay Residences, comprising 6 blocks of high-end condominiums
Successfully launched 4 blocks with GDV of RM620m in Sep 2013
• Fully taken up
Launching Block E in 2H 2014, comprising 167 units with estimated GDV of RM122m
• Average pricing of RM730,000 with built up of 900 sq ft
Planning to launch one block of high-rise residences in 2H 2014
Estimated GDV of RM318m
39
Tropicana Bay Residences @ Penang World City
33-storey lifestyle development in the heart of George Town
Featuring neo suites, serviced apartments, retail shops and 200-room hotel to be managed by ’Courtyard by Marriott’ – the first in Malaysia
Total estimated GDV of RM320m
40
Northern Region - Tropicana 218 Macalister
Launched over Jan / Feb 2014 with encouraging response
299 units of serviced residences and neo suites with total GDV of RM290m
• Current take-up at 39%
19 retail units with GDV of RM30m
• Pricing from RM520k to RM5.0m with built-up of 323 sq ft to 2,000 sq ft
• Current take up of 41%
41
Tropicana 218 Macalister
Land sales and development activities to continue driving growth in FY2014
High unbilled sales of RM2.4bn underpins growth in development earnings
• Earnings momentum to improve as construction of ongoing projects progresses to more advanced stage
Target to achieve new sales of more than RM2.0bn in 2014 from planned launches of RM3.0bn in FY2014
Greater emphasis on landed residential and township developments
Maiden launch of Tropicana Heights and Tropicana Aman
• Strong response for initial launch in Tropicana Heights
Continue with de-gearing focus to strengthen balance sheet
43
Sustaining Growth In FY14
2014 New Launches of RM3.0bn
61%11%
28%
Central Southern Northern
Strategic landbanks across Greater KL, Iskandar Malaysia & Penang Island
Strong potential for unlocking value through development activities and land sales
44
Landbank of 1,954 acres with potential GDV of RM70.5bn
Breakdown by GDVBreakdown by Acreage
Total 1,954 acres Total GDV of RM70.5bn
61%
34%
5%
Central Southern Northern
36%
51%
13%
Central Southern Northern
45
Transformation Into Premier Property Group
• Realising value of our sizeable landbank
• Accelerating inventory sales and fast tracking new launches
• Enhancement of profit margin through value engineering; and harnessing synergies via centralised procurement and shared services
Unlocking Value Through Development
• Pursue land sale opportunities to accelerate and enhance returns to shareholders
• Target sustainable disposal strategy to generate recurring income stream
Unlocking Value Through Land Sales
•Accelerate de-gearing via disposal of land parcels and none-core investment assets
•Target to achieve long term net gearing of < 0.5x
De-Gearing Initiatives
• Forming strategic partnerships at projects level to accelerate growth
Strategic Partnerships
• Official name change to Tropicana Corporation Berhad
• Current & future projects to carry common Tropicana brandname
• Improve brand equity to command premium product pricing
• Concurrent IR rebranding to institutionalize shareholders base
Enhance Corporate Identity Via Re-Branding Exercise
Thank you
For further information, please contact :
Mr Justin Law, Corporate Finance & Investor Relations
T : +603 7710 1018 ext 408
E : [email protected] / [email protected]
W : www.TROPICANACORP.com.my
IMPORTANT DISCLAIMERThe presentation pack is intended to provide financial and management information about Tropicana CorporationBerhad (“Company”) for investors’ information only and shall not be construed as an attempt by the Company toencourage, recommend or advise any transaction and the Company makes no guarantees in any manner as to theaccuracy of its contents.
The plans, strategies and decisions of the Company in this presentation pack except those derived from actualhistorical events, are expressions of future prospects prepared based on the information and hypothesis currentlyavailable to the management of the Company and may include various risks and uncertainties which may result ina variation of the performance and records actually announced in the future.
We encourage that you make your own decision in making your investments. The Company assumes noresponsibility in any way and shall bear no liability for the results of any and all transactions conducted by youbased on the use and/or referencing of the contents in this presentation pack.
Potential New Launches Interest TenureTotal Land
Area (acre)
Land Cost
(RM m)
Total GDV
(RM m)
Remaining GDV
@ Mar 2014
(RM m)
Development
Period
Tropicana Gardens 70% Leasehold 17.6 7.0 2,679 2,044 7 yrs
Tropicana Metropark 100% Freehold 88.5 385.5 7,165 6,335 16 yrs
Tropicana Heights 100% Freehold 198.5 235.8 1,726 1,456 11 yrs
Tropicana Danga Bay 60% Freehold 37.3 308.5 8,370 7,190 14 yrs
Tropicana Danga Cove 50% Freehold 227.0 220.0 12,140 11,708 13 yrs
Penang World City 55% Freehold 102.6 1,072.2 10,086 9,466 15 yrs
Future Projects
The Residences 100% Freehold 1.3 123.0 1,150 1,150 4 yrs
Tropicana Aman 100% Leasehold 863.1 955.5 13,000 13,000 20 yrs
Casa Damansara 3 100% Freehold 1.1 3.5 135 135 3 yrs
Others 100% Various 10.2 53.1 430 430 -
Tropicana City Centre 100% Freehold 21.9 146.0 3,602 3,602 8 yrs
Tropicana Danga Lagoon100% Freehold /
Leasehold
62.2 130.6 2,500 2,500 15 yrs
TDB Hotel & Residences 60% Freehold 6.0 85.9 1,336 1,336 4 yrs
Tropicana Gelang Patah 100% Freehold 256.6 366.6 6,440 6,440 10 yrs
Senibong Waterfront 70% Freehold 60.0 444.3 3,673 3,673 7 yrs
GRAND TOTAL 1,954 74,432 70,465
48
Summary Of Future Launches
50
Executive Board Members
• Entrepreneur with extensive experience in property development, resort management, restaurants, leisure and entertainment operations.
Tan Sri Dato’ Danny Tan
Group Executive Vice Chairman
• Former Group MD of Hong Leong Industries Bhd and MD of Sunway Holdings Bhd. A Chartered Accountant by profession with > 30 years of experience in corporate finance and general management.
Dato’ Yau Kok Seng
Group CEO
• Bachelor of Science (Honours) in Business Management and Masters of Science in Internal Auditing and Management. 8 years experience in corporate strategy and planning, group sales and marketing and business development.
Dato’ Dickson Tan
Deputy Group CEO
• Architect by profession with > 20 years of experience in the property development. Overseeing the property development projects for Central Region.
Edmund Kong
Group Managing Director
• Over 23 years of experience in the Asean banking and financial services industry, particularly in the areas of investment banking, corporate banking, leveraged buyout & financing, loan syndication and capital markets.
Kok Kong Chin
Group Managing Director
51
Professional Senior Management
• Bachelor of Engineering (Hons) in Civil Engineering from University of Bristol and MBA from University of Bradford. >20 years in property development : business planning, land acquisition, master planning, product & design development, tender and award, cost and cash flow management, construction management and BCA Green Mark Accreditation.
Lee Han Ming
Managing Director
Projects
• > 20 years in corporate finance, general management, investment and fund management, treasury, taxation and investor relations in several major conglomerates in the country.
Leong Choon Meng
Executive Director
Corporate Finance
• MBA from University of Bath, UK. > 20 years in property development, real estate, retail/merchandise industry, responsible for marketing strategies, planning, public relations, market research, product pricing /development and advertising & promotion activities.
Pamela Loh
Executive Director
Sales & Marketing