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DAMANSARA REALTY BERHAD
CORPORATE AND BUSINESS UPDATE
Investor & Media Relations
Upload Version: 5
12 July 2017
1
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This presentation is not and does not constitute an offer, invitation, solicitation or recommendation to subscribe for, or purchase, any securities and neither
this presentation nor anything contained in it shall form the basis of, or be relied on in connection with any contract or commitment or investment
decision.
This presentation has been prepared solely for use at this presentation. By your continued attendance at this presentation, you are deemed to have
agreed and confirmed to Damansara Realty Berhad (“DBhd”) that:
a) You agree not to trade in any securities of DBhd or its respective affiliates until the public disclosure of the information contained herein; and
b) You agree to maintain absolute confidentiality regarding the information disclosed in this presentation until the public disclosure of such information, or
unless you have been otherwise notified by DBhd.
Reliance should NOT be placed on the information or opinions contained in this presentation or on its completeness. This presentation does not take into
consideration the investment objectives, financial situation or particular needs of any particular investor. No representation or warranty, express or implied,
is made as to the fairness, accuracy, completeness or correctness of the information, opinions and conclusions contained in this presentation. DBhd and
its affiliates, related bodies corporate, their respective officers, directors, employees and agents disclaim any liability (including, without limitation, any
liability arising from fault or negligence) for any loss arising from any use of this presentation or its contents or otherwise arising in connection with it.
This presentation contains projections and “forward-looking statements” relating to DBhd’s business and the sectors in which it operates. These forward-
looking statements include statements relating to DBhd’s performance. These statements reflect the current views of DBhd with respect to future events
and are subject to certain risks, uncertainties and assumptions. It is important to note that actual results could differ materially from those anticipated in
these forward looking statements. DBhd does not undertake to inform you of any matters or information which may come to light or be brought to DBhd’s
attention after the date hereof.
The forecasts and other forward-looking statements set out in this presentation are based on a number of estimates and assumptions that are subject to
business, economic and competitive uncertainties and contingencies, with respect to future business decisions, which are subject to change and in many
cases outside the control of DBhd. The directors and officers of DBhd believe that they have prepared the forecasts with due care and attention and
have considered all best estimates and assumptions when taken as a whole to be reasonable at the time of preparing the presentation. However, DBhd’s
forecasts presented in this presentation may vary from actual financial results, and these variations may be material and, accordingly, neither DBhd nor its
directors or officers can give any assurance that the forecast performance in the forecasts or any forward-looking statement contained in this
presentation will be achieved. Details of the forecasts and the assumptions on which they are based as set out in the presentation.
Disclaimer
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Corporate Overview1
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Damansara Realty Berhad (“DBhd”) was incorporated on 29 December 1960 and listed on the Main Board
of Bursa Malaysia since 6 September 1973
Seaview Holdings Sdn Bhd (51.0%)
Integrated Facility Management Land & Property Consultancy
Property
Johor Corp (13.8%)
F&B and Catering
Maintenance and Operations
Cleaning and Security
Parking and Logistic Services
Medical Facility Services
Current Active Projects including
Central Park
Aliff Square 1 and 2
Damansara Hills 1
PPA1M
‘
Construction Management
Hospitals Planning
Corporate Overview
4
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Recent Highlights
Mar 2016TMR Urusharta (“TMR”) secured RM 35 Mil. contract to provide cleaning
and related services for KLIA
Apr 2016HC Duraclean (“HCD”) secured RM 6.9 Mil. contract from Ministry of
Health (“MoH”) Malaysia to provide cleaning services
Jun 2016 Proposed issuance of redeemable convertible notes up to RM 150 Mil.
Sep 2016Brian Iskandar Zulkarim appointed as the Group CEO and Zain Azrai
Zainuddin appointed as the Group CFO
Sep 2016TMR JV secured RM 124 Mil. contract to provide facilities management
and cleaning services to PETRONAS RAPID project in Pengerang, Johor
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Recent Highlights
Oct 2016MoU with Country Garden (“CG”) to develop a 53-acre integrated township
in Johor Bahru
Oct 2016Signed agreement with Putrajaya Corporation (“PJC”) to develop the Projek
Perumahan Penjawat Awam 1Malaysia (“PPA1M”) project
Nov 2016 Implementation of Strategic Restructuring Plan (“SRP”) by the Group CEO
Mar 2017 Entered into an SPA with CG to jointly develop Central Park
Mar 2017 Grand Opening of Central Park in Johor Bahru
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Recent Highlights
Apr 2017 Shareholders approved the development of 53-acre Central Park
Apr 2017 Launched Damansara Hills 1 in Kuantan, Pahang
May 2017HTS entered into a JVA with Axventure as the project management
consultant for the construction of a hospital in Selangor
June 2017 TMR secured RM 26.21 Mil. contract to provide security management
services for PETRONAS RAPID project in Pengerang, Johor
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Corporate & Business Update2
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Historical Group PAT (2006 – 2016)
RM’Mil.
4.40
(15.97)
(12.62)
1.18
(8.82)
(3.17)
1.94
8.26
(4.61)(2.83)
(27.73)(30.00)
(25.00)
(20.00)
(15.00)
(10.00)
(5.00)
0.00
5.00
10.00
15.00
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
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Legacy issues led to three consecutive years of financial losses between FY2014 and FY2016
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1. Subsidiaries operating in ‘silos’ with low economies of scale
2. Lack of competitive advantage in several key business segments
3. Upholding corporate governance and management control
4. Ineffective controls over financial and operating cost
5. Unclear strategy to enhance shareholder value
Tackling Challenges
10
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Introduced in November 2016, SRP is a three-phase transformation roadmap
aimed to build a strong foundation for growth and return the Group to profitability
Strategic Restructuring Plan (“SRP”)
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Properties &
Land
Development
Facility
Management
(Engineering)
Housekeeping
&
Cleaning
Parking
Management
Project
Management
• Alignment of business divisions
• Leveraging synergies across businesses
• Expanding services
SRP: Driving Synergy
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SRP: The Strategies
1. Restructure and integrate the non-property operations as the preferred Integrated
Facility Management (“IFM”) solutions provider; expand project management and
consultancy services to support Group’s property development projects
2. Streamline and accelerate the Group’s property portfolio to revive or start new
projects which have clear visibility to improve margins, cash flow and bottom line
performance
3. Improve corporate governance, elevate the Group’s corporate profile and seek
capital market options with a view to enhance shareholders’ value
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Restructure and Integrate
the Non-Property OperationsStrategy 1
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Strategy 1a: Transforming into the Preferred IFM Specialist
a. Integrated non-property services under a single IFM umbrella
b. Position the Group to capture an increasing demand from clients to deal with a single service provider
c. Bolt-on strategy to add related competencies
d. Coordinated marketing strategy to cross-sell services and target higher-value, higher-margin contracts
e. Continuously improve integration and skill sets
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The Clients
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Our esteemed Clients, to list a few
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RAPID Pengerang
SINGAPORE
Presence in Malaysia & Singapore
TMR Urusharta (M)
HC Duraclean
Metro Paking (M)
LEGEND
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Metro Parking Philippines
Metro Parking Management Philippines
Incorporated:4th Floor Salustiana D. Ty Tower104 Paseo de Roxas Street, Makati City, Philippines
Telephone Number: (+632) 7521026
Fax Number: (+632) 7521027
ISO Certified Company Market Share
Bays
12,098
Car Parks
61
Ortigas Alabar Makati Cebu
Currently Operate in Major Cities Next Cities In Line
Venezuela Santa Rosa Pampasa
Top business competitors:1) Parkwise2) Propark Management
HQ
Presence in Philippines
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Our strong existence in parking management business in Philippines
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TMR Urusharta (M) HC Duraclean Metro Parking (M)
Preferred Facility Management Service Provider by PETRONAS
PICEV Security OUI-JV Security
RM 26.21 Mil.
PICEV & PICMO
RM 124 Mil.
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Significant contracts awarded by PETRONAS
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Strategy 1b: Expand project management and consultancy services to support property projects
• Project management and consultancy services arm is spearheaded by HTS
• Emphasis will be on deploying HTS’ services to the Group’s various property development projects
• Intends to diversify income streams from other consultancy activities
• Keen to explore new opportunities in healthcare industry such as providing comprehensive consultancy services via Build-Equip-Transfer model
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Kangar
Alor Setar
B. Mertajam
Taiping
Sitiawan
Puncak Alam Ampang Damansara Kajang
Kuala Lumpur Seremban Port Dickson
Sri Gading Kluang
Skudai
Kota Bharu
Kuantan
Miri
Kuching
Melaka Tengah
Johor Bharu
Port Moresby, PNG
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Our presence in Healthcare Industry, actively involved in Hospital Planning and Project Management Consultancy Services
Project Management Consultancy (PMC) Services offered
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Streamline and Accelerate
Group’s Property PortfolioStrategy 2
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• Property projects play an important role to improve the Group’s margins, cash flow and bottom line performance
• The Group has streamlined and accelerated its property portfolio through four catalyst projects:
i. Central Park
ii. Aliff Square 1 & 2
iii. Damansara Hills
iv. PPA1M Project
Strategy 2: Streamline and Accelerate Group’s Property Portfolio
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Project Description
30%-owned JV with Country Garden
63 acres
Mixed Development: Residential & Commercial
Tampoi Johor Bahru
53 acres
Selling Price
RM650 psf.
6 – 8 years
Affordable housing for middle to high income buyers
Focus on local buyer
Excellent amenities
Superb location
Plot Area
Unique Selling Proposition
Completion
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Central Park Integrated Township Project
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Aliff Square 1 & 2 in Johor Bahru
Project Description
16 units of 3 & 4-strorey shoplots & offices
Located in bustling Tampoi Commercial Zone
Short distance from JB city centre, Pasir Gudang port
and Tanjung Pelepas port
Completion
Completed in 2016.
CCC expected to be obtained in Q3 2017
Unique Selling Proposition
Freehold land in prime location within Iskandar
Malaysia's Flagship Zone A.
5 min Easy accessibility to Skudai, Pasir Gudang &
Tebrau Highway
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Total Land Size
0.68 acre
Sales Price
From RM 2.0 Mil. to
RM 4.8 Mil.
Total GDV
RM 39 Mil.
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Project Description
49 units of terrace and Semi Detached houses built in
prime area in Kuantan, Pahang
Minutes away from east coast highway, Bandar Indera
Mahkota and Telok Cempedak
Total Land Size
5.72 acres
Selling Price
RM400K to RM600K
Expected completion
Q2 2018
Unique Selling Proposition
Guarded and gated neighbourhood
Safe and healthy environment
Garden facing facilities
Damansara Hills 1 (DH1) Kuantan, Pahang
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Project Description
Joint development with PJC (the land owner)
1,350 units of PPA1M apartments and 45 units
commercial development at Precinct 5, Putrajaya
Total Land Size
11.9 acres
Expected completion
2019 - 2022
Unique Selling Proposition
Located in Precint 5 Putrajaya
Government personnel
Competitive price
PPA1M & Commercial Development in Putrajaya
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Improve Corporate Governance, Elevate Corporate
Profile and Seek Capital Market OptionsStrategy 3
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• Over 50 initiatives implemented in first phase of SRP covering corporate governance, risk management and operational improvements:
Executive Committee (“EXCO”), the highest decision-making authority a layer below the Board, to deliberate on matters related to Group’s financial performance and drives synergies between subsidiaries
Group Approval Limits of Authority (“GALOA”) was introduced to enhance corporate governance
Centralisation of processes (Human Resources, Procurement, Finance, Legal and other corporate functions)
Strategy 3: Improve Corporate Governance, Elevate Corporate Profile and Seek Capital Market Options
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• Intends to raise up to RM150 Mil. in redeemable convertible notes and undertake a bonus issue of 154.7 Mil. warrants
• Capital market options will allow DBhd to:
• Raise funds expeditiously
• Offer flexibility to drawdown funds
• Potentially increase DBhd’s trading liquidity on Bursa and its investor network
Strategy 3: Improve Corporate Governance; Elevate Corporate Profile and Seek Capital Market Options
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Financial Review3
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INCOME STATEMENT FY ended FY ended
RM’Mil. 31 Dec 2016 31 Dec 2015
Revenue 183.6 207.1
Gross profit 19.3 47.3
Net loss attributable to owners of the parent 26.8 4.3
BALANCE SHEET As at As at
RM’Mil. 31 Dec 2016 31 Dec 2015
Total Assets 342.7 346.3
Total Liabilities* 247.0 223.1
Cash and Cash Equivalents 25.7 41.0
*NOTE: CGRE deal will reduce total liabilities from RM 247 Mil. to RM127 Mil. (less RM 120 Mil)
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FY2016 Financial Review
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3 Years Financial Performance
Higher loss in 2016 was due to Exceptional Items (“EI”).
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RM’Mil.
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Q1 – Q3 2016
Q4 2016
Q1 2017
TARGET
FY17REV: RM133.1 Mil.
EBITDA: (RM0.44 Mil.)REV: RM183.6 Mil.
EBITDA: (RM7.5 Mil.)
REV: RM50.8 Mil.
EBITDA: +RM0.16 Mil.
Expected better
performance in
Q3 onwards
Q2 2017
Post SRP
implementation result
Q3 2017
34
EBITDA Performance as at YTD Q1 2017
102 %
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Outlook4
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• To accelerate the second stage of SRP through the second half of FY2017 and whole FY2018
• The financial performance in the second half FY2017 is projected to be better than the first half of FY2016 due to the SRP initiatives
• In the absence of major write-offs and exceptional items, the Group expects to record an operating profit for the whole FY2017
Outlook
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Media and Investor Contact Information
• WeR1 Communications Sdn Bhd
• Ian Lau | [email protected]
• Sophia Halim | [email protected]
• Nazlina Quadir | [email protected]