PRESENTATION TO SHAREHOLDERS 86th Annual General Meeting 26 September 2013

Transcription

1 PRESENTATION TO SHAREHOLDERS 86th Annual General Meeting 26 September 2013

2 E&O s 3 years Business Plan FYE 2014 FYE 2016

3 Current Assessment : Building Foundations Business Plan : Growth & Development Branding Regional & International Exposure Strategic Partnerships Alliances & Collaborations Talent Attract, Retains & Motivate Growth Engines Delivering Shareholder Value E&O s Corporate Values Conclusion

4 Current Assessment : Building Foundations Business Plan : Growth & Development Branding Regional & International Exposure Strategic Partnerships Alliances & Collaborations Talent Attract, Retains & Motivate Growth Engines Delivering Shareholder Value E&O s Corporate Values Conclusion

5 Current Assessment Building the Foundations Next Growth and Developments Future > 2016 E&O has grown bigger and stronger over the past 10 years Whilst its financial performance has been strong over the past 5 years, it has had to adapt and respond to markets / the environment in order to stabilize the business Currently in a strong financial position, the Group has begun to establish a concrete roadmap for the future

6 Business Plan : Assessment Strategic Thrusts First Stage of Development Assessment KPI 1 : Regional and international exposure of the brand within the group AFC Building non property portfolio Efforts taken but minimal effectiveness and conversion KPI 2 : Strategic alliances and collaboration with well renowned & international institutions Sime Darby Khazanah / Temasek Mitsui Partnership Significant achievement and success. Need to operationalize KPI 3 : Development of new growth engines Iskandar Malaysia : Medini International : London Laid the foundations for diversification KPI 4 : Significant bottom-line growth and sustainable profits RM million profit cumulaive (PAT) Target achieved A.R.M. Talent - to attract the best talents, KPI 5 : Recruitment of top tier talent retain and motivate existing top performers There is a need to define and deliver value proposition E&O shares continued to rise from *RM1.16 to **RM1.58 marking a 36% total appreciation Market capitalisation has grown from *RM977 million to **RM1.8 billion E&O succeeded in building partnerships, achieved the financial targets, laid foundations for a diverse portfolio but faced the challenge to reach out regionally and internationally effectively as well as build and nurture top tier talent in the organization Source : Bloomberg *1 st April 2011 ; **31 st March 2013

7 Current Assessment : Building Foundations Business Plan : Growth & Development Branding Regional & International Exposure Strategic Partnerships Alliances & Collaborations Talent Attract, Retains & Motivate Growth Engines Delivering Shareholder Value E&O s Corporate Values Conclusion

8 Business Plan Building the Foundations Next Growth and Developments Future > 2016 E&O has taken a different roadmap to sustainable growth versus its competitors; concentrating on building its brand before accelerating its growth and development The challenge is to maintain its strong brand presence in spite of this accelerated growth phase The strategic thrusts and vision outlined in the past business plan remain relevant but require a shift in focus and perspective E&O is committed to sustainable growth beyond the 3 year plan ensuring that the team always keeps an eye on the future

9 E&O Next 3 years and beyond Building the Foundations Next Growth and Developments Future > 2016 Initial Target RM250m Achieved RM262.6m Cumulative PAT target for FY2014 FY2016 RM450m and stretch of RM500m Sustainable GDV and PAT per annum

10 The current strategic framework is reframed to strengthen the brand and deliver sustainable profits Regional and International Exposure of the Brand Brand, Talent and Strategic partnerships are key drivers in developing each growth engine Reinvestments Strategic Partnerships - alliances and collaborations Development of new Property Growth Engines Real Time Opportunities to ARM Talent Significant bottom-line growth and sustainable profits The delivery of the growth engines will have an affect on the bottom line with the proceeds reinvested Key drivers Growth engines

11 Current Assessment : Building Foundations Business Plan : Growth & Development Branding Regional & International Exposure Strategic Partnerships Alliances & Collaborations Talent Attract, Retains & Motivate Growth Engines Delivering Shareholder Value E&O s Corporate Values Conclusion

12 Branding - Regional & International Exposure Framework (Local Supply Global Demand) Rest of World China Japan Expatriate Community Local Supply Growth Engines Penang KL/Klang Valley UK Malaysian Diaspora Iskandar Singapore Indonesia Strong Regional & International Brand Global Demand outstrips Local Supply Growth Trajectory uninhibited by competition Sustainable profits & growth opportunities

13 Current Assessment : Building Foundations Business Plan : Growth & Development Branding Regional & International Exposure Strategic Partnerships Alliances & Collaborations Talent Attract, Retains & Motivate Growth Engines Delivering Shareholder Value E&O s Corporate Values Conclusion

14 Strategic Partnerships : Alliances & Collaborations Framework Regional Operationalizing Existing Partnerships Strategic alliances and collaboration with well renowned & international institutions Infusing International design and standards in regional partnerships Pursuing additional international partnerships and operational collaborations Marketing / Sales & Distribution Design / Development International Establishing new international partnerships Hospitality / Leisure collaborations Joint Investment

15 Current Assessment : Building Foundations Business Plan : Growth & Development Branding Regional & International Exposure Strategic Partnerships Alliances & Collaborations Talent Attract, Retains & Motivate Growth Engines Delivering Shareholder Value E&O s Corporate Values Conclusion

16 Talent Attract, Retain & Motivate Framework Employee Value Proposition is Real Time Opportunities E&O Exciting Opportunities Nurturing Talent E&O Enriching Opportunities Experiential Training (Training and on the job learning) E&O Empowering Opportunities Career Pathing Community Relations (A.R.T) Business Life Skills Programme Skills & Talent Curriculum Leadership Development LTIP Performance Management Employee Engagement

17 Current Assessment : Building Foundations Business Plan : Growth & Development Branding Regional & International Exposure Strategic Partnerships Alliances & Collaborations Talent Attract, Retains & Motivate Growth Engines Delivering Shareholder Value E&O s Corporate Values Conclusion

18 Growth Engine 1 : Penang STP 1 STP 2 STP 1 STP 2 Almost completed with a series of launches : Andaman (final block) Marina Office / Service Apartments Super terraces 760 acres facing STP 1 Split into 2 islands, each having a different composition of residential and commercial element Strategy Strategy Launch the respective developments over the next 3 years as per schedule Operationalize STP 2 In the immediate term the focus is to complete the launches of the STP 1 developments. STP 2 will be critical and the emphasis for the next 3 years is to operationalize it.

19 STP 2 : What is being proposed? Up to 12,000 new homes 8 new districts 88 acres of open space which includes a network of green spaces/squares, park grounds, public spaces and coastlines Over 12km of new island waterfront International marina and yacht club Leisure and cultural facilities including theatre and aquariums New shopping high streets A new commercial district of hotels and office space required by MNCs

20 The Masterplan : Key Components Total area : 760 acres Land use Stage A Stage B Acres Residential 41% 47% Commercial & mixed use Public spaces, infrastructure & utilities 34% 15% 25% 38%

21 Where we are right now April An Approval-in-Principle for the proposed project was obtained from the Penang State Government 24 August A Public Dialogue was held to obtain public feedback on the detailed environmental impact assessment (DEIA) study We are currently collating questions raised by the public and putting together answers to be compiled in the DEIA Report which is targeted to be submitted to the Department of Environment (DOE) in Q4 2013

22 Growth Engine 2 : Iskandar Avira Collaboration between Khazanah and Temasek Wellness Sanctuary / Resort complemented with Medini Estate which includes launches of Terrace Houses, Serviced Apartments, Semi-D, Bungalows, Commercial and Condos Launch over Strategy Deliver on the Medini development and identify / develop complementary developments in the Iskandar region

23 Growth Engine 2 : Iskandar Maiden Launch Q Terrace homes 208 units Preliminary estimate for Avira masterplan Product Units Terraces 458 Semi-Detached 122 Bungalows 62 Serviced Apartments 1,500 Condominiums 2,000 Commercial 470,000 sq ft GFA

24 Growth Engine 3 : KL/Klang Valley KL City Centre The Mews The Peak Jalan Conlay Strategy Launch the respective developments over the next 3 years as per schedule Kemensah Heights 310 acres Greenfields/ Agricultural Land At preliminary stages in developing a unique concept that differentiates from other KL developments Strategy Begin development of Kemensah Heights E&O will focus on larger land banks with Kemensah Heights as a key development in the pipeline. It is critical to look into developing 2-3 additional developments to sustain our next phase of growth.

25 Current Launch : The Mews Launched Sept units : Achieved 70% take-up

26 The Proposed Acquisition: Elmina West Elmina West

27 The Proposed Development Memorandum of Agreement signed on 25 th September 2013 between E&O and Sime Darby to develop on a site of approximately 135 acres in Elmina West Proposed Wellness themed concept with a dedicated Wellness Centre to comprise mixed commercial and lifestyle residential development An extensive highway network is conveniently connected to the Guthrie Corridor Expressway Proposed new DASH Highway expected to complete in 2016 will connect straight to the Penchala Link/Mont Kiara, cutting travel time to approximately 15 minutes

28 Princes House, London Within close proximity to the internationally renowned Covent Garden Market, the Royal Opera House and some famous hotels and theatres such as The Waldorf, The Savoy and within the vicinity of top London s renowned

29 Growth Engine 4 : International London/UK is the platform to accelerate the international growth engine building on our current investments In order to develop a portfolio that delivers growth that translates into sustainable profits, strong local know how and understanding of the market is critical Acquiring and developing the right platform is critical to obtain quick access to information and capital This engine can be developed further once the right platform has been established

30 Current Assessment : Building Foundations Business Plan : Growth & Development Branding Regional & International Exposure Strategic Partnerships Alliances & Collaborations Talent Attract, Retains & Motivate Growth Engines Delivering Shareholder Value E&O s Corporate Values Conclusion

31 Delivering Shareholders Value Building the Foundations Next Growth and Developments Future > 2016 The investments made in the Business Plan will yield sustainable profits beyond 2016 This will translate into greater shareholder value

32 Current Assessment : Building Foundations Business Plan : Growth & Development Branding Regional & International Exposure Strategic Partnerships Alliances & Collaborations Talent Attract, Retains & Motivate Growth Engines Delivering Shareholder Value E&O s Corporate Values Conclusion

33 Introduction of E&O s Corporate Values : Why do we need corporate values? Necessity In the coming decade values are well on the way to revolutionizing many areas of the society. Businesses for one are expected to display a high-consciousness of corporate social values Commitment The greatest potentials for growth of any company are generated by a commitment to high corporate values These values effects : How we approach one another in the company How we deal with our suppliers How we interact with our stakeholders It is important that E&O being a young company to initiate and incorporate the practice of strong corporate values, which in turn anchor the future progress and successes of the company

34 Our Purpose E&O designs and builds properties that cater to the aspirational lifestyle needs of discerning individuals Our Value We do things differently, always for the better, with sincerity, integrity and passion

35 Current Assessment : Building Foundations Business Plan : Growth & Development Branding Regional & International Exposure Strategic Partnerships Alliances & Collaborations Talent Attract, Retains & Motivate Growth Engines Delivering Shareholder Value E&O s Corporate Values Conclusion

36 A Business Plan Built to Last Building the Foundations Next Growth and Developments Future > Growth Engines 3 Strategic Thrusts Penang Iskandar KL/Klang Valley International Regional / International Exposure Strategic Partnerships & Collaborations A.R.M Talent E&O Corporate Values Doing things differently, always for the better Sincerity Integrity Passion

37 Thank You