From Good To Better Now Going To Be Great - gbg.com.myfor-website).pdf · Berhad, Ann Joo Resources...

From Good To Better Now Going To Be Great

Contours @Melawati HeightsThe Peak @ Iskandar JBMRT KL

PUSAT PENTADBIRAN SULTAN AHMAD SHAH KUANTAN, PAHANG ONE JESSELTON WATERFRONT KOTA KINABALU, SABAH

Offices: Kota Damansara, Selangor (HQ) KotaSAS, Pahang Kota Kinabalu, Sabah

May 2018

This presentation is solely for information purposes only, and have not been independently verified. No representations or warranties, express or implied, are madeas to, and no reliance should be placed on, the accuracy, fairness, completeness or correctness of the information, opinions, estimates, forecasts or projectionspresented or contained in these materials. Neither the Company nor any of their respective directors, officers, employees, advisers or representatives, shall haveany liability whatsoever, as a result of negligence or otherwise, for any loss howsoever arising from any information or opinions presented or contained in thesematerials. The information presented or contained in these materials is subject to change without notice, and shall only be considered current as of the date hereof,unless otherwise stated.

These materials contain statements that reflect the Company’s beliefs or expectations about the future or future events as of the respective dates indicated therein(“forward-looking statements”). These forward looking statements are based on a number of assumptions about the Company’s operations, its future developmentplans, market (financial and otherwise) conditions, growth prospects and property projects, and are subject to significant risks, uncertainties and other factorsbeyond the Company’s control, and accordingly, actual results may differ materially from these forward-looking statements. The Company expressly disclaims anyobligation to update these forward-looking statements for events/or circumstances that occur subsequent to such dates.

These materials do not constitute or form part of and should not be construed as, an offer or invitation to acquire, purchase or subscribe for any securities nor arethey meant to invite such offer or invitation. No part of these materials shall form the basis of or be relied upon in connection with any contract or commitmentwhatsoever.

These materials are highly confidential and the information contained herein may not be copied, reproduced, redistributed, or otherwise disclosed, directly orindirectly, in whole or in part to any other person at any time (whether within or outside your organisation / firm) in any manner for any purpose. By attending thispresentation, you are agreeing to maintain absolute confidentiality regarding this presentation and the information disclosed in these materials.

Some of the pictures, photos and images including design drawings in relation to the Company’s projects contained in this presentation are artist impression onlyand are subject to variations, modifications and substitutions as may be decided by the Company at its discretion.

DISCLAIMER

2

Key Shareholdings as at 27 April 2018 and Market Statistics

Dato’ Azizan Jaafar Dato’ Paul Ow Chee Cheon EPF KWAP Kenanga

Key Market Statistics (as at 30 April 2018)

Ordinary Shares GBGAQRS

Last Closing Price RM1.60

12-Month High RM2.16

12-Month Low RM1.24

Total Shares Outstanding 475.4m

Current Market Cap RM760m

Warrants GBGAQRS-WA

Last Closing Price RM0.30

Exercise Price RM1.30

Total Shares Outstanding (m) 114.5

Expiry 20 July 2018

11.4% 7.1% 7.3%6.5% 6.0%

3

Corporate Profile

Listed on the Main Board of Bursa Malaysia Securities Berhad on 31 July 2012,our core businesses are:

INVESTMENTCONSTRUCTION

➢ Design & Build➢ Building & Civil➢ Geotechnical➢ SEDCO Precast

➢ Development➢ Property Investment➢ Hospitality

PROPERTY DEVELOPMENT

➢ Strategic Investments and Management

4

Cultivating a New DNA

Group Chief Executive Officer Dato’ Azizan Jaafar took over the management ofGBG Group in April 2016 and formed TEAM GBG. Under Dato’ Azizan’sleadership, GBG has been successful in its transformation.

• TEAM GBG explored new frontiers in construction and property development,streamlined internal management processes in a bid to improve efficiency.

• Expansion of TEAM GBG from various fields and backgrounds to ensure ourcore division are handled by industry experts.

• TEAM GBG, with the “TEAM GBG” spirit, captures and maintains marketleadership to ensure value creation for stakeholders and shareholders.

• TEAM GBG maintain focus on the end-goal which is imperative to overcomeany setbacks and challenges.

• TEAM GBG, from all disciplines or position, are to stay focused on the end-goals to lift up GBG to greater heights.

GBG AQRS BERHAD . FROM GOOD TO BETTER . NOW GOING TO BE GREAT

TEAM GBG

5

Board of Directors

Y.M. Tunku Alizan Bin Raja Muhammad Alias

Independent Non-Executive Director and Chairman

• Holds an LLM from the University of Bristol and LLB (Honours)

from the University of Malaya.

• Admitted as an Advocate & Solicitor of the High Court of Malaya

and formed Messrs. Zul Rafique & Partners in 1999.

• More than 27 years of experience in Legal industry specializing

Corporate and Construction Law.

• Director of KUB Malaysia Berhad, Scomi Engineering Berhad and

various other private limited companies.

Datuk Kamarudin bin Md. Ali

Senior Independent Non-Executive Director

• Masters of Science in Engineering from the University of

Birmingham, United Kingdom.

• Held several positions in the Royal Malaysian Police (RMP)

including the Chief Police Officer of Kuala Lumpur and Johor

Darul Takzim and Director of Management RMP.

• Director of ECM Libra Financial Group Berhad, Libra Invest

Berhad, Ann Joo Resources Berhad and various other

private limited companies.

Loo Choo Hong

Independent Non-Executive Director

• Admitted as a member of the ACCA in 1998, and is currently

a Fellow member of the accountancy body.

• Currently the tax director of ASQ Tax Services Sdn. Bhd. and

Principal of C.H. Loo & Co.

• Director of Wang-Zheng Berhad, Timberwell Berhad and

various other private limited companies.

Dato’ Azizan Jaafar

Group Chief Executive Officer

• More than 25 years of experience in the construction industry & 8

years of experience in the property development industry

• Worked with many international and local firms such as

Warrington Martin, Henry Riley & Sons, Taisei Corporation, and

Ahmad Zaki Sdn Bhd

• Shareholder and director of Tanah Makmur Kota SAS Sdn. Bhd.

Dato’ Paul Ow Chee Cheoon

Group Deputy Chief Executive Officer

• Responsible for overseeing the property development activities

of the Company and for managing its day- to-day operations,

strategic planning and business development.

• More than 26 years of experience in the construction and

property development industries.

Ow Yin Yee

Group Chief Financial Officer

• Bachelor of Economics (Majoring in Accounting and Finance)

Monash University, Australia.

• A Certified Practising Accountant with CPA Australia since 1994

and Chartered Accountant of the MIA since 2001.

• 26 years of working experience in the areas of accounting,

finance and taxation, the past 13 years of which were in the

Construction and Property Development industries.

Muk Sai Tat

Independent Non-Executive Director

• Masters of Business Administration (General Management) from the University of Bath, United Kingdom.

• Certified Public Accountant (CPA) and a member of the MIA.

• Director of Melewar Industrial Group Berhad and Mycron Steel Berhad.

6

Senior Management

Ir. Bakri Bin Ishak

Managing Director (Construction Division)

• Master in Civil and Environmental Engineering.

• BEM PEPC since 1994.

• 32 years of experience in the construction industry as a Project

Director for MRT Package V1 – Kota Damansara – Sungai Buloh,

Sungai Besi – Ulu Kelang Elevated Expressway (SUKE) Package

CA3, Pusat Pentadbiran Sultan Ahmad Shah (PPSAS) and various

high rise condominiums in Klang Valley, Pahang and Johor.

Ir. Tai Jiunn Hong

Managing Director (Property Division)

• Master of Business Administration with major in Finance and

Strategic Management.

• BEM PEPC since 2006.

• More than 17 years of experience in engineering and property

development industries; including mixed development, high end

shopping mall, high end residential and office tower.

Abd Razak bin Abd Manan

Executive Director, Operations

• Master of Science in Structural Engineering.

• 20 years of managing projects related to building works

including Mass Rapid Transit V1.

Si So Tian Ann

Executive Director, Contracts

• Bachelor of Applied Science in Construction Management and

Economics.

• 25 years of experience in the construction industry.

• Spearheaded the team in the procurement and contracts

management for the projects undertaken by the Group.

Ir. Sudirman bin Kamal

Vice President, Technical

• Bachelor Degree of Science in Civil and

Structural Engineering.

• 36 years experience in the construction

industry including Mass Rapid Transit V1.

Sr. Mustafa bin Mohd Said

Vice President, Contracts

• Bachelor Degree of Quantity

Surveying.

• 15 years experience in contracts

including Mass Rapid Transit V1.

Thum Peng Yong

Vice President, Operations

• Bachelor Degree in Civil and

Structural Engineering.

• 32 years experience in

construction including Mass Rapid

Transit V1.

Chew Wei Shin

Vice President, Development

• Bachelor Degree (Hons) in Civil

Engineering.

• 15 years experience in the construction

and property development industry.

• Involved in expansion works of Monash

University and Sunway Univeristy and

high-end residential developments

(Desa ParkCity).

Muhammad Ridhwan bin Effendy

Vice President, Strategic Planning

& Investment (CEO’s Office)

• Bachelor of Commerce majoring

in Banking and Finance.

• 6 years experience in the Equity

Research for construction and

real estate sectors.

Lawrence Goh Yin Huat

Deputy Group Financial Controller

• Bachelor Degree of Arts in

Accounting. A chartered

accountant by profession.

• 15 years experience in auditing,

accounting and finance.

7

Vision and Mission

VISION

MISSION

At GBG, we are committed to:

• Instilling a professional organisation culture with employees that are highly committed, rightly experienced and loyal, enabling us to deliver quality projects and in time.

• Ensuring that we would be able to attract top industry talents, leading to a high quality client base, whilst creating value to our stakeholders and shareholders.

• GBG is moving forward to be one of the leading construction companieswith the expertise in building urban infrastructure and purpose-builtbuildings.

• We would continue to refine our expertise and grow, in line with thecountry’s infrastructure development, which continues to be enhanced asthe country moves to be a fully-developed nation.

GBG’s HQ in Kota Damansara

8

Core Values

Integrity

• We aim to create a collaborative,respectful and nurturing workenvironment, actively contributing tonation building in the communities inwhich we operate.

Commitment

• A committed team has ensured forprojects to be executed in spite ofthe massive headwinds that we facedand has resulted to a strong sense ofbusiness trust with clients.

Competence driving Operational Excellence

• We strive to ensure that aprofessionally run organisation wouldcontinuously move the Group toachieve better standards in quality andto deliver extraordinary products ontime and within budget.

Innovativeness

• We will go beyond expectations inproduct design, productdevelopment, customer service andsales, to ensure a continuousstream of recurring customers andstakeholders.

Core Values

9

Key Investment Highlights

Multiple Growth Engines

Key Management with

Complementary Blue-Chip

Experience

Proven Ability to Win High-Profile

Contracts

Property Division to Underpin

Earnings Growth

Strong Financial Position

Building Trust with Partners

1

2

Moving forward:1. Construction2. Property Development3. Asset based recurring income

Partners:1. Tanah Makmur Berhad2. Suria Capital Holdings Berhad3. Sedco Precast Sdn Bhd

High-Profile contracts:1. LRT3 - RM1.14b 2. SUKE - RM628m3. PPSAS - RM361m

Financial Outlook:1. Net gearing at 0.06x2. Tall construction order book of RM2.7b

3

4

6

5

10

Building Trust With Partners

1. Tanah Makmur Berhad

• Tanah Makmur Kota SAS Sdn Bhd(10.8% owned by Dato’ Azizan) is themaster developer for the 1,500 acresof Kota SAS, a new township whichhosts the new state administrativecentre in Pahang.

• Kreatif Sinar Gabungan Sdn Bhd (30%owned by GBG AQRS) is thedeveloper for Pusat PentadbiranSultan Ahmad Shah (PPSAS) withinKota SAS.

11


2. Suria Capital Holdings Berhad

a) One Jesselton Waterfront

• We entered into a joint venture agreement withSuria Capital to develop One JesseltonWaterfront.

• Will be the new iconic waterfront mixeddevelopment of Kota Kinabalu.

• Expected to generate NSV of RM1.8 billion.

• Would be integrated as a Tourism OrientedDevelopment (TOD) and Transport OrientedDevelopment (TOD).

b) Pan Borneo Highway Sabah• We have jointly tendered for the Pan Borneo

Highway Sabah.

12


3. Sedco Precast Sdn Bhd

• Shareholders:-i. Sabah Economic Development Corp – 51%ii. Gabungan AQRS Berhad – 49%

• Managed by Gabungan AQRS Berhad.

• One of the few IBS Status Company (Category A) in Sabah.

• Produces IBS components (Precast Planks, Beams, Staircaseetc.), RC Piles, RC Products (Box Culverts, U drain, L shapesetc.) and other customised products.

• We have commenced supply of IBG components for PanBorneo Highway Sabah.

13

Forces That Led to our Rebirth

HEIGHTENED RISK MANAGEMENT POLICY

•We set in place a stringent set of riskmitigating policies to ensure that claimssubmissions are settled on time.

ENHANCED CORPORATE GOVERNANCE

•Appointment of more independentdirectors to the board, to ensureinterests of both shareholders andstakeholders are protected.

SUSTAINABLE MANAGEMENT TEAM

•Ensuring our core divisions are headed byindustry experts, supported by acommitted “TEAM GBG”

FOCUS ON QUALITY CONTRACTS

•Revamping our contract procurementstrategy to focus on top quality contractsand clients.

14

Transformation On Track

• Gross borrowings reduced by 45% to RM168 million in 1Q18 compared toRM302m in 1Q17.• Net gearing shelved to 0.06x as at 1Q18, down from 0.73x in 1Q17.• Finance cost reduced to RM2.06 million in 1Q18, down 47% year on year.• Expect balance sheet to turn net cash in 2018.

REDUCTION IN GEARING AND FINANCE COST

REDUCTION IN OPERATING COSTS

• Operating costs to revenue has dropped to 9.4% in 1Q18, compared to13.7% in 4Q17.• This was achieved on the back of improving operational efficiency by astrong set of operating policies.• Targeting operating costs to revenue to reduce to 8% in FYE 2018.

RECURRING RENTAL INCOME

• We secured a 5+5 year rental agreement for the Petronas Basecamp inSipitang which generates RM2.84 million per quarter.• The rental income received from PCFSSB will further reduce the Group’sborrowings.

DIVIDENDS

• We reinitiated our dividend payments in FYE 2017 with a minimum 20% payout ratio.

15

10.0%

7.2%

9.1%

7.6%4.3% 8.0% 8.0%

3.7% 4.6%

-1.0%

4.0%

9.0%

14.0%

0

2

4

6

8

10

12

1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18

Overhead Cost (RMm)

Overhead Cost to Revenue (%)

Transformation

0.770.86 0.83

0.670.73 0.73

0.38

0.110.06

0.00

0.20

0.40

0.60

0.80

1.00

0

100

200

300

400

500

1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18

Gross Debt (RMm) Net Debt (RMm)Gearing (x)

Transformation

Financial HighlightsKey Figures

16

RMm1Q18 1Q17 4Q17

Jan - Mar 18 Jan - Mar 17 Oct - Dec 17

Revenue 127.5 158.9 150.2

Gross Profit 32.7 40.6 50.3

GP Margin 25.7% 25.6% 50.3

PBT 22.0 25.9 30.2

PBT Margin 17.2% 16.3% 30.2

PATMI 16.5 16.1 15.2

PATMI Margin 16.5 16.1 15.2

EPS (sen) 3.54 4.13 3.70

The following items were included in the profit of the Group:

1Q18 1Q17 4Q17

PATMI PATMI PATMI

Land sale gains - 15.1 -

MRT gain - - 33.3

LAD exposure - - -12.2

Altium development cost written-off - - -17.5

Impairment(reversal)/Provision/Penalties - - -1.5

Listing expenses (sukuk/placement/acquisition) - - -1.2

Fair value loss - - -1.8

Core Profit

(Net of the above one-off items) 16.5 1.0 16.1

Financial HighlightsAnnual Performance

273

330

469

0

200

400

600

2015 2016 2017

Revenue (RMm)Transformation

6.9%

10.2%

0.0%

5.0%

10.0%

15.0%

-10

10

30

50

70

90

2015 2016 2017

PBT (RMm)

PATMI (RMm)

PATMI Margin (%)

Transformation

17

Financial HighlightsQuarterly Performance

Note: 1Q17 recorded land sales which contributed turnover of RM90.4million, GP of RM22.6million, PATMI of RM15.1million

18

80

95

69

86

159

80 80

150.2

127.5

0

20

40

60

80

100

120

140

160

180

200

1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18

Revenue (RMm)

Transformation

4.7%

6.6%

7.5%

8.7%

10.2%

9.1% 11.7%

10.1%

12.9%

0%

2%

4%

6%

8%

10%

12%

14%

0

10

20

30

40

1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18

PATMI (RMm)

PBT (RMm)

PATMI Margin (%)

Transformation

Balance SheetNet gearing has improved by 45% in a year…

• The Group’s borrowings has been slashed to RM168million, a 45% year-on-year drop.

• Our net gearing has improved to 0.06x in 1Q18 from 0.73x in 1Q17 and 0.11 in 4Q17.

• Interest cost has declined by RM1.8 million, a 47.0%decline year-on-year.

• Group overheads (excl. finance costs and non-recurringitems) have reduced from RM6.8 million in 1Q17 toRM5.9 million in 1Q18, a reduction of 13.1%.

• Going forward, expect the balance sheet to continuestrengthening.

19

Finance Cost

3.3

4.2

3.3

4.4

3.9

3.4

3.0

2.32.1

0

1

2

3

4

5

1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18

Transformation

28

9

29

8

29

2

26

8

30

2

30

5

20

4

18

8

16

8

36

36 37

33 38

38 47

13

6

13

8

1 Q 1 6 2 Q 1 6 3 Q 1 6 4 Q 1 6 1 Q 1 7 2 Q 1 7 3 Q 1 7 4 Q 1 7 1 Q 1 8

Gross Debt Cash

Transformation

Strong Presence in Key Catalytic Growth Areas

GBG’s regional office in Kota SAS, Pahang

20

Dynamic Employees

204

109

Total Number of Employees

Male Female

262

51

Employees by Ethnicity

Bumiputera Non-Bumiputera

14%

8%

38%

46%

25%

% of Women in Management

Board of Directors Senior Management Middle Management

Executive / Supervisory Non-Executive

64

40

133

49

0

20

40

60

80

100

120

140

2015 2016 2017 Mar-18

Total Number of New Hires

21

Empowering the Youth

TRAINING OF FRESH TALENTS

Leveraging on an experienced management and operations team, we move to continuously build up our young talentpool.

On 4 December 2017, we hired 51 fresh graduates under the Federal Government’s SL1M programme, mostly withengineering backgrounds.

The new talents have been strategically placed at our core sites of operations in the Klang Valley and Pahang.

Opportunities to be explored to ensure a sustainable and strong pool of talent, crucial to the growth of GBG.

22

Construction DivisionSegmental Review

Performance Review

• Revenue for the construction division increased by 123% year-on-year to RM138.2 million in 1Q18, contributed by SUKE,PPSAS and LRT3 projects.

• In terms of pre-tax profit, the division contributed aboutRM23.9 million, a 176.7% increase compared to the previouscorresponding quarter of RM8.6 million in 1Q17.

• PBT margins from the division also improved to 17.3% from13.8% in 1Q17 due to more advanced stages of construction.

(RMm) 1Q18 4Q17 1Q17

Revenue 138.2 159.8 61.9

PBT 23.9 68.8 8.5

PBT Margin 17.3% 43.1% 13.8%

MRT gain 0.0 43.8 0.0

Impairment(reversal)/Provision/Penalties 0.0 (1.5) 0.0

PBT (Net of above items) 23.9 26.5 8.5

PBT margin (Net of above items) 17.3% 27.5% 13.8%

Transformation

24

-3.7%

-0.3%

13.6% 23.8%13.8%

19.8% 29.7%

43.1%

17.3%

-10%

0%

10%

20%

30%

40%

50%

60%

-10

10

30

50

70

90

110

130

150

170

1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18

RevenueProfit Before TaxPBT Margin

Construction DivisionProgress billings are accelerating with corresponding margins set to rise…

On-going Projects• We secured RM1.33 billion worth of new jobs in 2017 which

includes LRT3, our largest job to date.• Balance RM2.9 billion order book as at 31 Dec 2017.

• Recognized about RM366 million in FYE 2017• Currently undertaking projects at 6 sites

Projects On Track• Expect PPSAS, SUKE,LRT3 and PR1MA Gambang contract

works to continue contributing healthy earnings over the next11 quarters.

• Margins boosted this quarter by variation order claims forMRT V1.

Outlook• The Group envisions to secure RM1.5 billion new order book

in 2018.

0

1,4611,326

0

500

1,000

1,500

2,000

2015 2016 2017

Orderbook Replenishment (RMm)

Transformation

25

Construction Order BookTall order book provides promising earnings visibility…

ProjectValue

(RMm)1H16 2H16 1H17 2H17 1H18 2H18 2019 2020 2021 2022 2023

Unbilled Orders asat 31 Mar 18

Infrastructure

Sungai Besi Ulu Klang (SUKE) Package CA3

628 Aug Dec 475

Light Rail Transit 3 (LRT 3) 1,137 Oct 4Q 1,086

Building

The Peak, Johor Bahru 308 Aug 128

Pusat Pentadbiran Sultan Ahmad Shah (PPSAS)

362 Dec Mar 154

PR1MA Gambang 424 Jun May 370

E’Island Residence 314 Dec Dec 314

Landed Homes in Kota SAS 189 Apr Mar 189

Total Contract Value 3,362 2,716

▪ Our balance unbilled order book of RM2.7b will sustain earnings until 2021▪ Order book replenishment outlook remains rosy for the Group

26

E’Island Residence

Project Value (RM)

: RM314 million

ConstructionPeriod

: 36 Months

Land Owner : AQRS The Building Company Sdn Bhd

Main Contractor

: Gabungan Strategik Sdn Bhd

One Jesselton Waterfront, Kota Kinabalu

Project Value (RM)

: RM800 million

Date of Possession

: 2018

Date of Completion

: 2023

Developer : GBG Properties (Sabah) Sdn Bhd

Main Contractor : Gabungan Strategik Sdn Bhd

Construction Division

UPCOMINGUPCOMING

27

Kota Sultan Ahmad Shah (KotaSAS), Kuantan

Project Value (RM) : RM189.22 million

Commencement Period : 2018 Phase 1

2019 Phase 2

2020 Phase 3

2021 Phase 4

Developer : KotaSAS Sdn Bhd

Main Contractor

: Gabungan Strategik Sdn Bhd


UPCOMING

28

Construction and Completion of Guideway, Stations, Park and Ride, Ancillary Buildings and Other Associated Works for

Package GS04 for Construction and Completion of Light Rail Transit Line 3 (LRT 3) from Bandar Utama to Johan Setia

Project Value (RM) : RM 1.137 billion

Date of Possession : 5 October 2017

Construction Period : 38 months

Developer : Prasarana Malaysia Bhd



ON GOING

29


ON-GOING

Light Rail Transit 3 (LRT)

Package GS 04

Site Progress

Soil InvestigationBored piling works close to Sg Damansara

Trial hole piloting for SYABAS’s water pipeBored piling works in

progress at Etika Land

30

Pusat Pentadbiran Sultan Ahmad Shah (PPSAS)

Project Value (RM) : RM362 million

Date of Possession : 27.12.2016

Date of Completion : 26.3.2020

Developer : Kreatif Sinar Gabungan Sdn Bhd



ON-GOING

Overview of Site Progress

31


ON-GOING

Pusat Pentadbiran Sultan

Ahmad Shah (PPSAS)

Site Progress

32

Overview of Site Progress at Location B1

Sungai Besi – Ulu Kelang Elevated Expressway (SUKE) Package CA3



Date of Completion : Dec 2019

Main Contractor : Syarikat Muhibah Perniagaan &

Pembinaan Sdn Bhd

Sub Contractor : Gabungan Strategik Sdn Bhd


ON-GOING

Precast Beam Fabrication Yard

33


ON-GOING

Sungai Besi – Ulu Kelang Elevated Expressway (SUKE) Package CA3

Site Progress

Completed Piers and Pier Heads Piers Under Construction

Bored Piling Works in Progress

34

The Peak, Johor Bahru


Date of Possession : 2014

Date of Completion

: 2018

Developer : AQRS The Building Company

Sdn Bhd



ON-GOING Installation of Aluminum Frames & Window

35

PR1MA Gambang, Kuantan


Date of Possession : Upon Receiving Building Plan

Construction Period : 36 Months

Developer : Perbadanan PR1MA Malaysia



ON-GOING

Earthworks Cut & Fill to Platform Level

36

Mass Rapid Transit Klang Valley:Sungai Buloh – Kajang Line (KVMRT V1)



Date of Completion

: 29.9.2016

Developer : MASS Rapid Transit Corporation

Sdn Bhd

Main Contractor : Syarikat Muhibbah Perniagaan &

Pembinaan Sdn Bhd


25-Storey Service Apartment @Pandora,Tropicana Metropark Subang Jaya



Date of Completion

: 30.12.2016

Developer : Tropicana Metropark Sdn Bhd



COMPLETED COMPLETED

37

Accommodation for Petronas Chemical, Sipitang, Sabah

Total Units : 250 units of Type C (studio) & 52 units of Type E (3-room) & Club Facilities, Surau & Cafeteria

Contract Period : 14 months

Rental per month : RM945,000.00 (commenced April 2016)

(Rental period 5 years + 5 years)

Client : Petronas Chemical Fertiliser Sabah Sdn Bhd



COMPLETED WITH RECURRING INCOME

38

Performance Review

Property development division reported a revenue of RM14.8 million in 1Q18, an 84.5% drop from the previouscorresponding quarter of RM95.7 million.

The decrease in revenue is mainly due to the fact that land sales were recognised in the previous correspondingquarter amounting to RM90.4 million.

(RMm) 1Q18 4Q17 1Q17

Revenue 14.8 (6.8) 95.7

PBT/(LBT) (1.4) (31.2) 16.7

Less : One-Off items

Land sale gains - - 15.1

LAD exposure - (12.2) -

Penalties - - -

Altium development cost written-off - -17.5 -

Fair value loss - (1.80) -

PBT (Net of above items) (1.4) 0.3 1.6

Property Development DivisionSegmental Review

40

Property Development DivisionPromising prospects ahead…

On-going Project• The Peak is currently 30% taken up.• Unbilled sales stand at Net Sale Value (NSV) RM128 million; unsold inventory NSV RM486 million.

Outlook and Prospects:The Peak :• Positive property market outlook for Johor Market 2018

onwards due to following factors:i) Bilateral agreement between Malaysia and Singapore for

the construction of Johor Bahru-Singapore Rapid TransitSystem (RTS) which will provide seamless publictransportation from Johor Bahru Bukit Chagar Station toSingapore Woodlands North Station. Upon completion by2024, RTS link will be able to carry up to 10,000 passengerseach direction every hour.

ii) BRT system with station right in front of The Peakdevelopment connects The Peak to RTS Bukit ChagarStation with estimated travelling time of 15mins and toHSR station with estimated travelling time of 25mins.

iii) With effect 1 Jan 2018, Eastern Dispersal Link (EDL) whichis toll free will save the average motorist RM16.50 perroundtrip.

With the seamless public transportation systems (BRT, RTS and HSR) integration in place, The Peak which is strategically locatedwill be a well sought after property.

41

Property Development DivisionPromising prospects ahead…

Outlook and Prospects: The Peak (Cont’d) :• Target to relaunch to market in June 2018.• Target fully sold by 2019.

One Jesselton Waterfront: • Target to finalize Mall SPV and Hotel & Serviced Suites SPV with strategic partners by June 2018.• Target for commencement of physical construction works 4Q18.

E’Island Residence: • Target to be launched in 2H18.• 1,140 units of affordable apartments ranging from RM280,000 to RM495,000/unit with a total GDV of RM491 million.

Contours : • Unsold inventory NSV of RM30 million • Target to be fully sold by 2018

42

Development Location ProductLand Size

GDV(RM ‘000)

Status

One Jesselton Waterfront

Kota Kinabalu, Sabah

Integrated Development

6.28 1,800

To be launched in 2018. Target completion for• Suria Corp Office & Retail

Mall by September 2021• Hotel, Serviced Suites &

Condominium by 2023

E’Island ResidencePutra Perdana, Selangor

Serviced Apartment

19.03 491

Target commencement in 2H18. 1,140 units of affordable apartments

The PeakJohor Bahru, Johor

Serviced Apartment

5.43 69630% Sold.Target completion by 2018

Property Development DivisionSUMMARY OF UPCOMING & ONGOING PROJECTS

43

6.28-acre One Jesselton Waterfrontmixed Development with integrationof Tourism Oriented Development(TOD) and Transport OrientedDevelopment (TOD).

Estimated Net Sales Value (NSV) ofRM 1.8 billion with plot ratio 1: 5.56

Comprises of :

• One Jesselton Premier Lifestyle Mall

• Hotel

• Corporate Office and Retail

• Serviced Suites

• Condominium

• Jesselton Point Ferry Terminal &

Ticketing Hall

• Carparks

a) Basement – 1,564 bays

(For mall and serviced suites)

b) Multi-storey – 558 bays

(For condominium)

Property Development DivisionONE JESSELTON WATERFRONT KOTA KINABALU

44


Total NFA (sqft)

NSV(RM)

One Jesselton Premier Lifestyle Mall

333,255626,833,000

(RM1,881 psf)

Hotel 177,366 274,917,300(399 rooms @ avg RM689,015/room)

Serviced Suites 219,300 307,020,000(300 rooms @ avg RM1m/room)

Carparks (for mall, office, hotel & serviced suites)

1,290bays

58,050,000(RM45,000 per bay)

Condominium 341,852393,129,800

(RM1,150 psf)

Carparks (for condominium)

423Bays

Total NSV 1,659,950,100

Total GFA (sqft)

NSV(RM)

Corporate Office 74,48752,010,750

(RM1,000 psf based on NFA)

Retail space 74,892114,394,050


Ferry Ticketing Office

10,0002,000,000


Total NSV 168,404,800

Grand Total Estimated NSV: RM1,828,354,900

45

On 19 July 2017, GBGAQRS has entered into a Memorandum ofUnderstanding (“MOU”) with Tera Capital to co-operate together to invest,construct, develop and operate a mixed integrated property developmentOne Jesselton on the following:

• GBGAQRS to develop the hotel and serviced suites in the Projectaccording to the design concept provided by Tera Capital

• Tera Capital to bring a partner-contractor who will participate as a jointventure with Gabungan Strategik Sdn Bhd

• Tera Capital to provide full hotel management and operation services tohotel & serviced suites.

• Tera Capital shall appoint its related company to promote and marketrespective residential apartment units in the Project.

The MOU was signed between the Group CEO of GBGAQRS Dato’ AzizanJaafar and Mr Ted Fang, the CEO and founder of Tera Capital. Mr Ted Fangwas listed by Prestige Lifestyle Magazine as one of Singapore’s 200 mostpowerful and influential people in 2009, 2010, 2011, 2012 and 2014.

Photo: Group CEO of GBGAQRS Dato’ Azizan (left) and CEO & Founder of Tera Capital Ltd Mr Ted Fang (right).

MOU with Tera Capital Group

Property Development DivisionONE JESSELTON WATERFRONT – Signed MoU with Tera Capital Group

46

• Tera Capital is a Singapore-based investment firm with interests in hotel, real estate,and technology businesses.

• Played an active and crucial role in the development of the companies it invests insuch as Frontier Group, a hotel management firm which owns the Days Hotel masterfranchise for China (including Hong Kong and Macau).

• In 2003, Mr Ted Fang successfully acquired the Days Inn master franchise for China(including Hong Kong and Macau) from Wyndham Worldwide Corporation.

• Since beginning of operations in 2004, under Tera Capital and Frontier Group, DaysHotel China has become one of China's fastest growing mid-market hotel chains, witha portfolio of more than 190 hotels (more than 45,000 rooms) over 102 cities across23 provinces and 3 municipalities.

• Days Hotel China operates 5 brands in China (including Hong Kong and Macau) whichare Days Hotel & Suites (5-Star), Days Hotel (4-Star), Days Inn Business Place, Days Inn(3-Star) and Day Suites.

• Tera Capital intends to expand its hospitality investments and businesses beyondChina into the rest of Asia, including Southeast Asia.

Property Development DivisionONE JESSELTON WATERFRONT - Background of Tera Capital Group

47


Corporate Office @ One Jesselton Waterfront for Suria Capital Holdings

Expansive view of a world-class sunseton the horizon of the South China Sea

The finest seafront living experiences in Kota Kinabalu CBD

48

28.9 Acres

One Jesselton

Waterfront

Property Development DivisionJESSELTON WATERFRONT CITY KOTA KINABALU

49

Property Development DivisionJESSELTON WATERFRONT CITY KOTA KINABALU

50

• 2004 → 2016 (1.77million to 3.43million) = 107% increase

with an average of approximately 5.8% per annum

*Source from Tourism of Sabah

VISITOR ARRIVAL BY NATIONALITY

COUNTRY OF ORIGINSTATISTIC VALUE

2016 2017Southeast Asia 324,756 271,261

China 374,939 431,026

Japan 27,093 22,079

Taiwan 55,442 62,121

South Korea 197,945 310,802

Australia 30,139 24,010

New Zealand 3,447 3,391

UK & Ireland 35,901 31,793

Europe (Except UK & Ireland) 43,038 38,081

U.S.A 14,433 12,731

Canada 5,853 5,480

Middle East 2,585 1,588

Others 13,205 13,169

Malaysia 2,299,132 2,449,556

TOTAL 3,427,908 3,684,734Projection arrival by UKAS at year 2020: 9 million

No. of Visitors (International + Malaysians to Kota Kinabalu)


51

Country CityFrequency

(Weekly)

China

Shenzhen, Guangzhou,

Hangzhou, Shanghai,

Wuhan, Fuzhou

60

Hong Kong Hong Kong 32

Brunei Bandar Seri Bengawan 26

Singapore Singapore 23

South

KoreaSeoul, Busan 35

Taiwan Taipei 18

Philippines Clark (Manila) 13

Indonesia Jakarta, Bali 6

Thailand Bangkok 4

Japan Tokyo 3

Australia Perth 2

Total 222

StateFrequency

(Weekly)

Kuala Lumpur 252

Sarawak 97

Labuan 35

Johor Baru 25

Penang 11

Kelantan 3

Flights within Sabah

Sandakan 60

Tawau 56

Lahad Datu 35

Kudat 2

Total 576

* Source from Sabah DCA (2017)

International Flights Domestic Flights

Flight Connectivity via Kota Kinabalu International Airport (KKIA)


52

Kota Kinabalu International Airport


AirportPassengers

(m)

KLIA 52.6

Kota Kinabalu 7.3

Penang 6.7

Kuching 4.9

Subang 2.8

Local Airports

with Highest Passenger Traffic

(2016)

* Source from Malaysia Airports Holdings, CEIC Data

Passenger

Traffic

53

a) International Cruise TerminalPassengers handled at the terminal:-• Year 2012 : 24,321 passengers • Year 2013 : 77,295 passengers • Year 2014 : 148,848 passengers (92.6% increase

y-o-y)• Year 2015 : 180,200 passengers (21.1% increase

y-o-y)• Year 2016 : 200,000 passengers (9.9% increase y-

o-y)

b) Jesselton Point Regional Ferry TerminalMore than 600,000 passengers per year (International + Malaysians) to:-• Labuan• Brunei• Pulau Gaya and other nearby islands

Source from Tourism of Sabah (2017)

Artist Impression of ICT

The new JP Ferry Terminal


Marine Connectivity

54

Second largest ship constructed by Cunard Line; entered into service in 2010 and has a capacity of 2,092 passengers.


Queen Elizabeth

Kota Kinabalu International Cruise Terminal (ICT)Port of Call For International Cruises

55


Running mate to Queen Mary 2 and Queen Elizabeth whichoperated by Cunard Line; entered into service in 2007 andhas a capacity of 2,014 passengers.

One of the largest ships operated by Star Cruises; enteredinto service in 1993 and has a capacity of 1,500 passengers.

Queen Victoria SuperStar Aquarius


56



Sapphire Princess Dawn Princess

One of the world’s largest cruise ships owned by PrincessCruises; entered into service in 2004 and has a capacity of2,670 passengers.

A sister cruise to Sun Princess and Sea Princess whichoperated by Princess Cruises; entered into service in 1997and has a capacity of 1,990 passengers.

57

• One of the widest subclass of Grand Class Ship owned and operated by Princess Cruises• Entered into service in 2004 and has a capacity of 2,670 passengers• Arrival in KK: Apr & Dec 2018

• It is a Millennium class cruise ship which owned and operated by Celebrity Cruises• Entered into service in 2002 and has a capacity of 2,038 passengers• Arrival in KK: Nov 2017 & Feb 2018

• The largest and only transatlantic ocean liner owned and operated by Cunard Line• Entered into service in 2004 and has a capacity of 2,695 passengers after refit in 2016• Arrival in KK: Mac 2017


Diamond Princess

Celebrity Constellation

Queen Mary 2


58

Upcoming

Land Area

Total GDV

E’Island Residence

19.03 acres

RM 491 million

Total Units 1,140

Contractor Gabungan Strategik Sdn Bhd

Land Owner AQRS The Building Company Sdn Bhd

Selling Price RM 280,000 to RM 495,000

Property Development DivisionE’ISLAND RESIDENCE

59

Accessible via 5 major highways

– Linkaran Putrajaya, ELITE, LDP, Bukit Jalil Highway and SKVE


60


61

Type Size

(sq ft)No of Units

Type A 865 - 876 114

Type B 957 - 1,053 886

Type C 1,118 - 1,251 108

Type G 964 - 1,080 32

Total Units 1,140

Additional Details on E’Island Residence

- All units offer 3-bedrooms with 2 bathrooms

- All units are provided with Signature brand kitchen cabinets and Signature wardrobes for master

room, air conditioning unit and hot water system

- Surrounded by lakes with 360 degree breath-taking lake view

- Amenities include 500 meters of direct lakefront boardwalk, jogging and cycling tracks, glass-

facade gymnasium, playpool and gardens

- Equipped with PrimeXcess integrated security access system via mobile Bluetooth technology at

guard house and all lift lobbies

Breakdown of Units Offered


62

Type B3 Dry Kitchen

Type C3 Dry Kitchen

Type B4 Dry Kitchen

Type B4 Wet Kitchen


63

Type B1 & B4 Wardrobe (View 2)Type B1 & B4 Wardrobe (View 1)

Type C3 Wardrobe (View 1) Type C3 Wardrobe (View 2)

On Going

Type of Development

Total Development Area

Total GDV

The Peak @ Iskandar, Johor Bahru

High Rise Luxury Residential

5.43 acres

RM 696 million

Total Units 668

50m length lap poolEnjoy views that pleasureyou eyes, at the Skydeck.

Savour breathtaking views of the surroundings.With the city, a mere 5 minutes away

Property Development DivisionTHE PEAK

64

The Peak sits in a perfect location with close proximity to numerous public conveniences and amenities:

http://www.peak.com.my/jb-international-city.html#location-map

Property Development DivisionTHE PEAK

65

http://www.peak.com.my/jb-international-city.html#location-map

Development Location ProductLand Size

(acres)GDV

(RM ‘000)Status

Kinrara UptownKinrara Uptown, Selangor

2 & 4 StoreyShop Office

15.5 230 Fully Sold

Bistari ‘De’ KotaKota Damansara, Selangor


15 90 Fully Sold

ContoursMelawati Heights,KL

Twin Courtyard Villa

8 160 83% Sold

Permas CentroJohor Bahru,Johor


5.8 180 Fully Sold

The ResidensiKota Damansara, Selangor

Semi Detached Houses

15 93 Fully Sold

Gombak GroveGombak Grove, Selangor

Zero Lot Bungalow

5 60 Fully Sold

Property Development DivisionSUMMARY OF COMPLETED PROJECTS

66

Completed

Type of Development

Total Development Area

Total GDV

Contours @ Melawati Heights, Kuala Lumpur

Twin Courtyard Villa

8 acres

RM 160 million

Total Units 40

MELAWATI

HEIGHTS

The breathtaking backdrop for Contours is a priceless creation of

nature, as the homes hug the contours of the longest quartz ridge in

the world.

Actual photo of the link bridge connecting

the common and private areas in the villa.

Actual photo of mornings at the Residents’

Clubhouse

Property Development DivisionCONTOURS

67

SEDCO PrecastCOMPANY INFORMATION

Column

Slab Plank

Beams

U-Drain RC Square Pile

C-Gutter Beam

Manufacturer of Precast and IBS Products

Factory Name : SEDCO Precast Sdn Bhd

Shareholders : 51% Sabah Economic Development Corp (SEDCO)

49% Gabungan AQRS Berhad (GBGAQRS)

Location : Tuaran, Sabah

Land Area : 18.67 acres

Annual

Capacity

: 1. Current – 36,000 MT

2. Maximum – 150,000 MT

Certifications : 1. IBS Status Manufacturer – Category A

2. ISO 9001:2015

3. Product Cerification MS 1314:2004

Products : 1. RC Piles

2. Box Culvert (Standard and Super Size)

3. Precast Column

Projects : 1. Plaza Shell by Vinci Construction Grand Projets

2. Jesselton Residence by Vinci Construction Grand

Projets

3. Makhamah Tinggi Kota Kinabalu by Techbay

4. Block F, Custom Quarters at Sepanggar by Aliff

Corporation Sdn Bhd

Box Culvert

Staircase

69

SEDCO PrecastSITE LOCATION

Kota Kinabalu

Tuaran

Town

To Kota

Kinabalu

7th Km Tuaran-Kota Belud Highway,Kampung Kindu, Tuaran, Sabah.

70

SEDCO PrecastPROJECT REFERENCES

YEAR PROJECT CLIENTVALUE

RM (‘000)TYPE OF PRODUCT SUPPLIED

2014 - 2015Plaza Shell,Kota Kinabalu

Vinci ConstructionGrands Projects Sdn. Bhd.

2,400(Excluding steel bars

and accessories)

▪ Precast Planks (12,000 m²)▪ Beams & Façade Beams (2,500 MT)▪ Staircases (350 MT)▪ Columns (100 MT)▪ Counterweight (44 MT)▪ Concrete Tiles (3,800 pcs)▪ Concrete Bench (10 MT)

2015Badminton Hall, Kolombong

Gazprome Sdn.Bhd.

450 Precast planks (5,200 m²)

2015 - 2016High Court,Kota Kinabalu

TechbayConstruction

1,800

▪ Beams (2,850 MT)▪ Columns (90 MT)▪ Perimeter Drains (1,000 MT)▪ Hollow core (by Eastern Pretech)

2015Block F, Custom Quarters,Sepanggar

Alif Corporation (Sabah) Sdn. Bhd.

500 Precast Planks (Half Slabs) [3,500 m²]

2016Jesselton Residence,Kota Kinabalu

Vinci Construction Grand Projets Sdn. Bhd

250

▪ Counterweights for tower crane (45 MT)▪ RC box culverts (200 MT)▪ L units for C retaining wall (630 MT)▪ Precast C Gutter Beams (630 MT)▪ Precast Benches, Planters, and parapet wall (100 MT)

71

SEDCO Precast

Plaza Shell - IBS

Beam Staircase Slab Plank Column

72

SEDCO Precast

Jesselton Residences – Customised • C-Gutter Beam

• Garden Benches, Planters & Tyre Stopper

73

SEDCO Precast

The New Mahkamah Tinggi Kota Kinabalu - IBS

Under Construction Half Slab

Beams

74

SEDCO Precast

Supply of Precast IBS for Affordable Homes in Tuaran, Sabah

75

GABUNGAN AQRS BERHAD 912527-A

G-58-G, Blok G, Jalan Teknologi 3/9, Bistari De’ Kota, Kota Damansara,

PJU 5, 47810 Petaling Jaya, Selangor Darul Ehsan, Malaysia

T +603 6141 8181 F +603 6141 8383 | E [email protected] | W www.gbg.com.my

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