OSK Holdings Bhd...2019/06/29 · 2 Disclaimer • This presentation/document...

OSK Holdings Bhd29th Annual General Meeting

Financials

31 December 2018

30 April 2019

2

Disclaimer• This presentation/document (“presentation”) has been prepared by OSK Holdings

Berhad and its subsidiaries (“OSK Group”). All information contained in this presentation

is published for reference only. Expressions of opinion, forecasts or intentions contained

herein are subject to change without notice and should not be taken as advice or

obligations of the OSK Group. The information in this presentation may differ or be

contrary to the opinions or recommendations expressed by other business areas of the

OSK Group as a result of using different assumptions and criteria.

• The information contained herein is obtained in good faith from sources believed to be

reliable. This document does not purport to contain all of the information that may be

required to evaluate and should not be relied on in connection with any potential

transaction. Neither the OSK Group nor any of its affiliates makes any representation or

warranty, express or implied, as to the accuracy or completeness of the information

contained in this presentation and any liability therefore (including in respect of direct,

indirect or consequential loss or damage) is expressly disclaimed.

• All rights are hereby reserved. The contents of this presentation are confidential and

accordingly may not be reproduced or copied to any unauthorized persons or

incorporated into another document or other materials without the prior written consent

of the OSK Group.

Financials Highlights

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4

Financial Performance Highlights

RM million 2018 2017 ChangeChange

(%)

Revenue 1,204 1,169 35 3

Profit Before Tax 395 485 (90) (18)

Share of Profits 237 182 55 30

Profit After Tax 352 404 (52) (13)

Profit After Tax &

Non-controlling interests346 400 (54) (13)

Earnings per share (sen) 16.66 19.27 (2.61) (13)

ROE 7.6% 9.1%

5

Core Performance Highlights


(%)

Core Profit Before Tax 302 254 48 19

Core Profit After Tax 270 197 72 36

Non-Core Profit After Tax 82 207

Total Profit After Tax 352 404 (52) (13)

Core Profit After Tax &

Non-controlling interests264 194 70 36

Core Earnings per share (sen) 12.72 9.34 3.38 36

* Core Profits exclude:

FY2017:

• RM178 million (PBT & PAT) gain on deemed disposal arising from

the dilution of equity interest in a subsidiary company in Melbourne,

Australia and realisation of foreign currency translation gains; and

• RM53 million (PBT) / RM50 million (PAT) gain on fair valuation of

investment properties.

• RM21 million (PAT) reversal of deferred tax assets for projects

FY2018:

RM93 million (PBT) / RM82 million (PAT) gains

on disposals of Swiss-Garden Hotel Kuala

Lumpur and Garden Lodge in Sydney, Australia.

6

216

605

321

485

395

204 226

276 255

302

60

758

1,306

1,169

1,204

-

200

400

600

800

1,000

1,200

1,400

-

100

200

300

400

500

600

700

2014 2015 2016 2017 2018

Reported PBT Core PBT Revenue

5 Years Revenue, Reported PBT & Core PBTPBT

RM ‘mil

Revenue

RM ‘mil

7

Financial Performance by Segments

Property Construction Industries HospitalityFinancial

Services

▪ Property

Development

▪ Property

Investment

and

Management

▪ Building

▪ Civil

▪ Cables

▪ Industrialised

Building

System (IBS)

▪ Hotels and

Resorts

▪ Vacation

Club

▪ Capital

Financing

▪ Investment

Holding

Revenue

Core

PBT

60% 1% 24% 9%6%

34% 4% 9% (3%)56%

8

4 Years Segmental Revenue & PBT

113.7 103.8 149.8 169.3

9.7 33.3

25.6 26.0

88.7

144.6 78.3

104.2

6.2

7.1 12.0

12.1

8.1

(13.0) (11.2) (9.6)

378.3

45.6

230.7

93.4

(30)

70

170

270

370

470

570

2015 2016 2017 2018

RM ‘mil Segmental PBT

• FV gain on IP

• Impairment of PPE

• Negative goodwill:

PH & PJD

acquisitions

• RHB Rights Issue

• FV gain on IP • Gain on deemed

disposal: YPC

• FY gain on IP

• Gain on disposal

of PPE: hotels

39.8 48.1 54.3 66.8

113.8

298.3 289.3 293.0

537.5

824.8

688.8 720.8

12.6

13.7

30.3 11.0

53.8

120.7

106.6 112.4

-

200

400

600

800

1,000

1,200

2015 2016 2017 2018

RM ‘mil Segmental Revenue

9

Financial Position Highlights


(%)

Total Assets 8,093 7,903 190 2

Cash and Cash Equivalents 529 425 104 24

Total Liabilities 3,423 3,296 127 4

Borrowings 2,475 2,267 208 9

Net Debts 1,946 1,824 122 7

Shareholders’ Funds 4,597 4,539 58 1

Net Gearing Ratio (times) 0.42 0.40 0.02 5

Net Assets per share RM2.21 RM2.19 RM0.02 1

10

5 Years Net Assets per Share, Shareholders’ Funds, Total Assets &

Total Liabilities

11

Segments Assets and Liabilities

Property Development




your discretion.



13

Major Projects – Malaysia

GDV: RM 715 mil

Take-up-rate:

77% (Phase 1) & 15% (Phase 2)

GDV: RM 660 mil

Take-up-rate: 93%

GDV: RM 380 mil

Take-up-rate: 83%

GDV: RM 280 mil

Take-up-rate: 77%

GDV: RM 275 mil

Take-up-rate:

71% (Pastura) & 70% (Astera)

GDV: RM 250 mil

Take-up-rate: 95%

14

Melbourne Square – Phase 1Launched in June 2017

Featuring :

• 1,054 units

apartment

• 3,700 sqm of

landscaped

urban park

• 3,960 sqm (NLA)

full-concept

Woolworths

• 1,800 sqm (NLA)

other retail incl

F&B etc.

• 1,600 sqm (NLA)

childcare center

GDV : RM2.8 bil (AUD945mil)

Take-up rate : 65%

15

Melbourne Square – Phase 13 completion and hand-over stages to early realize cashflow :

Stage 1 457 apartment units &

landscaped park

- End 2019

- Est GDV : RM910mil

Stage 2 419 apartment units

- Mid 2020

- Est GDV : RM1.05bil

Stage 3 178 apartment units

Retail

- End 2020

- Est GDV : RM870mil

16

Sales, Unbilled GDV and Unsold GDV

1,410

748

956

1,099 1,100

1,540 1,600

1,344

-

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2017 2018

Year

Launched GDV Sales Unbilled sales Unsold GDVMelbourne Square

Completed units

485

510

226

576

326

358 67

119

RM ‘mil

1,030

17

Land Bank (Malaysia & Australia)

Kedah

• 1,221 acres

• Est. GDV:

RM 2.0 bil

Penang

• 15 acres

• Est. GDV:

RM 0.7 bil

N. Sembilan

• 456 acres

• Est. GDV:

RM 2.1 bil

Klang Valley

• 31 acres

• Est. GDV:

RM 4.0 bil

Landbank 1,732 acres

Est. GDV RM 11.3 billion

Klang Valley, RM4.0bil

35%

Australia, RM2.2bil

19%

Kedah, RM2.0bil

18%

Penang, RM0.7bil

6%

Negeri Sembilan,RM2.1bil

19%

Pahang, RM0.3bil,

3%

GDV (RM‘bil)

Pahang

• 6 acres

• Est. GDV:

RM 0.3 bil

Australia

• 2.5 acres

• Est. GDV:

RM 2.2 bil

Harbour Place, Butterworth

You City III, Cheras

Property Investment




your discretion.



19

Property Investment

Land area 1.32 acres (FH)

NLA 236,000 sqft

Occupancy rate 89%

NBV (fair value) RM155mil


NLA 481,000 sqft

Occupancy rate 69% - 96%


Plaza OSKJalan Ampang, KL


NLA 458,000 sqft

Occupancy rate 92%


Atria Shopping Gallery Damansara Jaya

Faber Towers Taman Desa, KL

Office Retail Office & Retail

Financial Services




your discretion.



21

Financial Services – Capital Financing• Licensed moneylender governed

under the Moneylenders Act

1951 (Act 400).

• Provision of short term corporate

and personal loan

• Financing for Initial Public

Offerings, ESOS, private

placements, general offers, rights

issues

• Bridging finance for Small

Medium Enterprises (SME) and

acquisition of assets

• Minimal non-performing loan

(NPL)

• Portfolio size of over RM570

million as at 31 December 2018

2014 2015 2016 2017 2018

2.10% 2.30% 0.40% - -

Ratio of

NPL

Loan Portfolio

Estimate

22

Financial Services – Strategic Investment

• Arose from the merger

between OSK Investment

Bank and RHB via share

swap in 2012

• OSK is the third largest

shareholder in RHB Bank

at 10.13% equity interest.

54

26

15

57

48

71

0

10

20

30

40

50

60

70

80

0

10

20

30

40

50

60

2013 2014 2015 2016 2017 2018

RM ‘mil Dividend Income from RHB

DRP CASH

Industries




your discretion.



24

Industries

• Produces quality electrical and power cables

since 1968.

• Factories located in Malacca & Ho Chi Minh City

(Vietnam).

• Ranked 4th among the market players.

• Accredited with MS ISO 9001:2000 and UKAS

Quality Management System, met TNB technical

specification.

• Certified by SIRIM QAS, LPCB.

• Machine utilisation : 100% (about RM250m

turnover capacity).

Olympic Cables Acotec

• Produces Industrialised Building Systems (IBS) wall

panels since 1994.

• Factories located in Taiping (Perak), Nilai (Negeri

Sembilan) and Bandar Tenggara (Johor).

• Market leader in Singapore with approximately 30%

share of hollow-core concrete wall market.

• Accredited with MS ISO 9001:2008, ISO 14001-2004,

UKAS Quality Management System and Singapore

Green Label Status.

• Factory capacity : 2.3 million m2.

Hospitality




your discretion.



26

Hotels and golf course owned and managed by

Hospitality – Hotels & Resorts

Swiss-Garden Beach Resort

Damai Laut, Perak291 rooms, 4-star

Occ rate: 48%

ARR: RM213

Damai Laut Golf and Country

Club, PerakAward-winning 18 holes championship golf course

Swiss-Garden Beach

Resort Kuantan, Pahang304 rooms, 4-star

Occ rate: 52%

ARR: RM242

Swiss-Inn Chinatown,

Kuala Lumpur150 rooms, 3-star

Occ rate: 42%

ARR: RM100

Swiss-Inn Sungai Petani,

Kedah101 rooms, 3-star

Occ rate: 51%

ARR: RM120

Swiss-Inn Johor Bahru,

Johor204 rooms, 3-star

Occ rate: 46%

ARR: RM126

27

Hotels managed by

Swiss-Garden

Bukit Bintang

Swiss-Garden

Residences Kuala

Lumpur

Swiss-Garden

Resort Residences

Sg Karang

Swiss-Garden Hotel

Genting

Location Kuala Lumpur Kuala Lumpur Kuantan, Pahang Genting Highlands, Pahang

Rooms 296 92 105 540

Occ rate 56% 51% 38% -

ARR RM176 RM120 RM203 -

Opening in

June 2019

Hospitality – Hotels & Resorts

28

• 6 products – 30 years & 15 years

• Selling price ranging from RM17k to RM22k

• Annual Maintenance fee – RM400 – RM680 p.a

• 12,350 active members

• Serviced by 5 sales offices

• 3,000 hotels and resorts destination worldwide

• Home-based destinations with 244 rooms inventories

• Global Exchange Partner – Interval International

Swiss-Villas Damai Laut, Perak Swiss-Court Holiday

Apartments Damai Laut, Perak


Damai Laut, Perak


KuantanSwiss-Garden Residences

Kuala LumpurSGI Vacation Club Melaka

Hospitality – Vacation Club

Dividend Track Record




your discretion.



30

5 Years Historical Dividends

7.50

20.00

7.50

6.005.003.69%

12.27%

5.36% 5.61% 5.75%

0.00%

2.00%

4.00%

6.00%

8.00%

10.00%

12.00%

14.00%

0.00

5.00

10.00

15.00

20.00

25.00

2014 2015 2016 2017 2018

Dividend Yield (%)Cents

DPS DY (%)

31

Dividends declared/proposed

Single-tier dividends 2018 2017 2018 2017

Dividend per share Total amount

Sen RM’000

Dividend declared/proposed:

Interim 2.0 2.5 41,544 34,620

Final * 3.0 3.5 62,316 72,702

5.0 6.0 103,860 107,322

* Subject to Shareholders’ approval.

Entitlement date : 7 May 2019

Payment date : 23 May 2019

Thank You

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