( D) Corporate Profile. 13 April 2016

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Abraham Gray
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1 ( D) Corporate Profile 13 April 2016

2 PROPERTY DEVELOPMENT 2

3 Development Landbank Project /Taman Distance Status Type of Development from JB Development Land (Acres) * Tam an Perindus trian 16km Approved Indus trial/ 123 Cem erlang Com m ercial * Des a Cem erlang 16km Approved Res idential/ 72 Commercial Bandar Cemerlang 20km * - Tebrau, Johor Bahru Approved (i) Mixed Kota Tinggi Approved (i) Mixed 526 * Others 20km Approved Res idential 5 Am bok 67km Pending finalis ation Res orts/ 794 of layout plan Mixed * Tam an Dato Chellam 18km Approved Res idential/ 17 Commercial * Nus a Cem erlang 30km Approved Indus trial 223 Indus trial Park * Tanjung Senibong 18km Approved (ii) Res idential/ 222 Commercial Total development land as at 31 January ,846 (i) Final conversion and subdivision approval (ii) Development right through Privatisation Agreement. * Land within boundary of Iskandar Malaysia (formerly known as Iskandar Development Region) is approximately 1,535 acres. 3

4 Location of Landbank CLSB Land 4

5 NCIP GDV OF COMPLETED PROJECTS as at 24 March 2016 Types of Development Detached and Semi- detached factories Units RM million TPC Factories DC Mixed development 5, TDC Mixed development TOTAL 6,537 2,448 5

6 Bandar Cemerlang (BC) 1,390 acres of freehold land bank near Ulu Tiram to be developed into a self-contained new township of residential/commercial development. Interchange completed in June It provides easy access to Bandar Cemerlang via the new Johor Bahru-Kota Tinggi Highway and Ulu Tiram-Ulu Felda Tebrau Road. Approximately 30 minutes drive from Johor Bahru City Centre via Tebrau highway & Eastern Dispersal Link (EDL) Approximately 4 km to the toli station of Senai-Desaru Expressway to Pasir Gudang / Tanjung Langsat / Desaru / Senai Airport & North-South Highway. Just a stone s throw away to Aeon Tebrau Mall, Tesco Tebrau City, Today s Mart at Ulu Tiram, Econsave at Desa Cemerlang. 6

6million have been launched. Total committed sales as at 24 March 2016 is RM63 million.

7 Bandar Cemerlang (BC) To date, 287 units of double storey terrace, cluster and semi-detached houses that are meticulously designed with functional layout with GDV of RM188 million and 33 units of shop office with GDV of RM41.6million have been launched. Total committed sales as at 24 March 2016 is RM63 million. Launching of 776 RMMJ (Johor Affordable Housing) townhouse units, 268 units of terrace houses and 93 units of shop office with a total GDV of RM412 million within the next 2 years. 7

8 Layout Plan of BC 8

9 Taman Perindustrian Cemerlang (TPC) 16km from Johor Bahru, 30km from Senai Airport and 16km from Singapore. Among the largest industrial parks in Johor. 600-acre industrial park with 900 factories once fully developed. 9

Taman Perindustrian Cemerlang (TPC) Further

24 units of cluster factories, 12 units of

10 Taman Perindustrian Cemerlang (TPC) Further construction of factories on 60 acres of land within TPC will commence in Estimated GDV for the first phase comprising 24 units of cluster factories, 12 units of semi-detached factories and 2 units of detached factories is RM86 million. There will be 4 phases in total with an estimated GDV of RM286 million. 10

11 Desa Cemerlang (DC) Next to TPC Self contained township with 6,900 units of mixed development. 11

12 Layout Plan of DC & TPC 12

13 Panoramic Land Sdn Bhd (PLSB) 17 plots of NCIP land measuring approximately 48 acres (2,080,543 sq. ft.) with an estimated built-up area of 1,334,972 sq. ft. will be held as investment properties through Panoramic Land Sdn. Bhd. for rental purposes. The estimated total rental income will be about RM20.2 million per annum (RM1.40/sq ft). Currently, 8 units of factories have been completed and 3 are pending issuance of CCC. The GDV of these 11 units of factories is RM250 million. 13

Nusa Cemerlang Industrial Park (NCIP) 527 acres of gross industrial development land

Development Value of RM785 million have been launched, and total GDV of RM716 million

14 Nusa Cemerlang Industrial Park (NCIP) 527 acres of gross industrial development land approved for development Main infrastructures such as rail, port and major highway are all in place nearby. To date 198 units of detached and semi-detached factories with a total Gross Development Value of RM785 million have been launched, and total GDV of RM716 million has been realized. The revenue for the remaining 5 unsold units of detached and semidetached factories with GDV of RM69 million can be fully realized once sold. 14

15 Competitive Advantages of NCIP Foreign investors and industrialists (especially from Singapore) are interested to invest in cheap freehold medium industrial properties of NCIP Top management of Singaporean industrialists have easier and more efficient control over their manufacturing operations at NCIP in view of the proximity, 10 minutes drive from Tuas Singapore through 2 nd Link. 15

16 Competitive Advantages of NCIP (Cont.) Sufficient skilled and unskilled workers from nearby housing estates and townships. Liberal immigration policy allows expatriate to fill up required posts. Enhanced security features with only 2 guarded entrances and a wide perimeter main drain surrounding NCIP. 16

17 Competitive Advantages of NCIP (Cont.) Close to major sea ports, airports and national highways enable time saving in transportation of raw materials and manufactured products. Utilities Much cheaper water and power tariff compared to Singapore. Telecommunication Serviced by Telekom Malaysia (TM) and Time Dotcom Bhd through a network of fibre optic cables. Waste Disposal NCIP is connected to existing 50,000 PE central sewerage treatment plant which is upgradeable to 150,000 PE. 17

18 Location Plan of NCIP 18

19 Layout Plan of NCIP 19

20 Industrialists at NCIP Industry* Engineering Metal plating Metal stamping Corrugated packaging Machinery Oil & gas equipment manufacturer Rubber bearing manufacturer Bio-tech Injection molding Food Air conditioner Confectionery Garment Can manufacturer Gypsum board Electrical components Printing Country of origin Malaysia, Germany Malaysia, Germany Malaysia, Singapore Malaysia Singapore Malaysia USA Malaysia Singapore, Malaysia Singapore, Malaysia Singapore, Malaysia Malaysia, Singapore Malaysia Korea Malaysia Singapore Germany, Singapore *Type of Industries operating at NCIP as at 31 March

21 Industrialists at NCIP (Cont.) Profile of investors based on Value Taiwan 1% US 4% Vietnam 3% Germany 2% Indonesia 1% Singapore 49% Malaysia 40% Germany Indonesia Malaysia Singapore Taiwan US Vietnam 21

Design Features of NCIP NCIP factories are designed

As such, several features are incorporated into the

Reflective Glass to the front facade Upmarket facade

9 meters for Detached Factories & 8 meters for

22 Design Features of NCIP NCIP factories are designed and built to meet high expectation of buyers. As such, several features are incorporated into the design such as:- Aluminium Composite Panel & High Reflective Glass to the front facade Upmarket facade - projection of good corporate image Eave Height of 9 meters for Detached Factories & 8 meters for Semi-Detached Factories 0.5mm Metal Roofing with Rock wool insulation 22

23 Design Features of NCIP (Cont.) Floor Hardener to the production area Detached Factory with built-in TNB Sub-Station Detached Factory surrounded with Concrete Driveway Wide access road 23

Tanjung Senibong Prime mixed residential and commercial

Comprises 1,854 units of residential properties, 6 plots

68 acres) for commercial complex / service apartments.

Iskandar Malaysia and very near Johor Bahru.

Tanjung Senibong shortens traveling time from city centre

Distance of approximately 18km from JB to Tanjung Senibong

24 Tanjung Senibong Prime mixed residential and commercial development of acres of land. Comprises 1,854 units of residential properties, 6 plots of land (72.68 acres) for commercial complex / service apartments. A water front project located in a prime location within Iskandar Malaysia and very near Johor Bahru. New EDL highway from Johor Bahru to Pasir Gudang through Tanjung Senibong shortens traveling time from city centre to Tanjung Senibong significantly. Distance of approximately 18km from JB to Tanjung Senibong will take 10 minutes. KM layout approval has been obtained and we will be building RMMJ over the next 2-3 years before we commence development of the commercial areas. 24

25 Layout Plan of Tanjung Senibong 25

26 Taman Dato Chellam (TDC) 37.6 acres of mixed development land acquired on 12 May Opposite to TPC and DC. Ready for immediate development - enhance earning capacity of Group. 26

27 Layout Plan of TDC 27

28 Ambok Resorts Recent completion of Sg Johor Bridge project in tandem with new Senai-Desaru Highway will boost land value of this 794-acre landbank in Kota Tinggi. Zoned for mixed development and possible to start developing this land in 6 years time. RM60 billion refinery and petrochemical integrated development (Rapid) in Pengerang will be completed by mid This Rapid development is located about 20 minutes drive from Ambok Resorts. At least 20,000 jobs will be created during construction phase and 4,000 potential jobs for highly-skilled workers upon completion of the Rapid development. Public-private partnership between state government, Vopak Asia Ltd and local oil and gas player Dialog Group developing a deep-water petroleum terminal in Pengerang will draw investments of RM56 billion over 10 years and create over 800 jobs. New oil and gas (O&G) industry facilities in Pengerang will boost town s population from a current 20,000 to 40,000. O&G hub of Pengerang will greatly improve potential development of Ambok Resorts in view of potential demand for quality accommodation at a safe distance from Rapid. A third bridge linking Malaysia and Singapore to improve connectivity and accessibility between the two countries is also being considered at Pengerang. This will help accelerate efforts to transform Pengerang into a regional oil and gas hub and further enhance value of Ambok Resorts. 28

29 Location Plan of Ambok Resorts (Cont.) Senai-Desaru Highway 29

30 Layout Plan of Ambok Resorts (Cont.) Senai-Desaru Highway 30

31 CONSTRUCTION 31

Construction Activities Undertaken by Unibase group, which

Contributed 6% of group revenue and 4% of group EBIT in FY2016.

contracts under Repute Construction Sdn. Bhd.

32 Construction Activities Undertaken by Unibase group, which commenced activities in August Contributed 6% of group revenue and 4% of group EBIT in FY2016. Undertakes both in-house and external contracts, with external contracts under Repute Construction Sdn. Bhd. Contract sum of external projects undertaken during FY2016 is about RM16.1 million. Turnover recognized from external projects is approximately RM8.2 million in FY2016. Lower revenue in FY2016 contributed from decrease in external contract works. 32

33 Concrete Manufacturing 33

Concrete Manufacturing Contributed 42% of group revenue and 22% of EBIT respectively in

These 3 plants also manufacture u drains, concrete pipes/culverts, piles and other precast

Concrete plant and other concrete products cater for both in-house and external needs.

34 Concrete Manufacturing Contributed 42% of group revenue and 22% of EBIT respectively in FY2016. Operates 3 ready-mixed concrete plants with a total capacity of 300 cubic m/hr. These 3 plants also manufacture u drains, concrete pipes/culverts, piles and other precast concrete products for export market. Concrete plant and other concrete products cater for both in-house and external needs. External sales is approximately 55.7% or RM20.8 million in FY2016. Contract sum of projects undertaken by Unibase Pre-cast Sdn. Bhd. during FY2016 is about RM27 million. 34

Based on the lock-in sales, the Group s performance in FY2017 is expected to remain

35 Near-Term Prospects The unbilled sales from the total committed property sales as at 31 January 2016 and new sales committed after 31 January 2016 is RM78 million. Based on the lock-in sales, the Group s performance in FY2017 is expected to remain satisfactory and main contributor will be from landed residential, industrial and commercial sales and construction activity. 35

36 Near-Term Prospects (Cont.) Development for Financial Year 2017 to 2019 (Period covered: 1 April 2016 to 31 March 2018) Development Type Unit available / GDV launched Unit RM m Launched Projects up to 31 March Tw o storey shop Three storey shop Double storey house Three storey house Detached and semi-d f actories New Project launches for next 2 years - Detached/semi-d/cluster f actories Three storey shop office Double storey house RMMJ 1, PKJB ,

37 Medium-to-Long Term Prospects Demand for landed medium cost residential, industrial and commercial property market is expected to remain good especially in Iskandar Malaysia region for the next few years. To continue to concentrate our effort to develop landed residential properties in Bandar Cemerlang, main contributors to Group earnings in the next few years. 37

38 Medium-to-Long Term Prospects (Cont.) Education Crescendo International College ( CIC ) caters for A-level, tertiary education and professional examinations Crescendo International School, which is located next to CIC, is currently under construction. This international school is expected to be operational by 1 January 2017 and will offer primary and secondary education based on International General Certificate of Secondary Education (IGCSE) syllabus. 38

39 Dividend Policy Dividend Policy Rewarding shareholders with minimum dividend payout of 30% of Net Profit After Tax and Minority Interests. 39

40 Dividend Payment Ratio (Times) * Profit Attributable (RM 000) 55, , ,695 17,768 Net Dividend Declared (RM 000) 22,794 36,425 27,299 12,932 Dividend (Sen) Dividend Yield (%) Dividend Pay-out (%) 41.0 # 44.4 # Market Price (RM) NTA (RM) *Based on unaudited 12 months results ended 31 January # Based on profit attributable excluding fair value gains, net of tax, on investment properties. ** For financial year ending 31 January 2016, an interim single tier dividend of 2 sen paid on 20 November 2015 and final single tier dividend of 3 sen payable on 29 Aug 2016 (Source: For 2013, 2014, 2015 and 2016, market price is based on The Star as at 31 January 2013, 31 January 2014, 31 January 2015 and 31 January 2016 respectively.) 40

41 STRATEGIES 41

42 Strategies In view of the current soft market for high rise development, the Group will focus more on landed medium cost and affordable housing development. Will continue to develop commercial and industrial properties but in smaller phases to be conservative. 42

43 Strategies (Cont.) Continue to sell substantially built and completed buildings due to demand from customers preferring to buy substantially built/completed buildings. Pre-built factories for rent to industrialists. Significant demand is expected for rental market at NCIP by foreigners currently operating in higher cost areas. Provide wider array of ready built property choices according to market demand Large detached factories and landed commercial properties to attract purchasers from Singapore Smaller semi-detached factories for both local and foreign purchasers Affordable RMMJ (Rumah Mampu Milik Johor) townhouses with approved selling price of RM169,000 Quality & modern design shop offices at populated areas 43

44 STRENGTHS 44

45 Strengths Established brand name Established our brand name in Johor property market. Good response for our products. Value added features like better landscaping, gated community, etc. A main developer of integrated industrial park in Johor. 45

46 Strengths (Cont.) Sufficient and strategically located land bank Close proximity to Singapore, Johor Bahru, Pasir Gudang and Senai Airport, land banks being developed are within boundary of Iskandar Malaysia. Due to the lower cost of properties in Malaysia, Singaporeans are looking to Malaysia for long term property investment opportunities. Johor is first choice, near to Singapore and similar culture. Due to close proximity of NCIP to Tuas in Singapore and improvement in bilateral relationship, significant relocation of medium industries from Singapore to NCIP expected to accelerate because of lower land cost, cheaper labour and utility costs and easier management control. 46

47 Strengths (Cont.) Sufficient and strategically located land bank (Cont.) With growing interest among Singapore companies to invest in Iskandar Malaysia, new investments in NCIP by multinational companies operating in Singapore will escalate. Infrastructure development in Iskandar Malaysia will continue its rapid pace with completion of Iskandar Coastal Highway, making easier travel from Johor Bahru to Nusajaya, new Johor State Administrative Centre and other developments on west coast. Malaysia and Singapore jointly announced in February 2013 an agreement to build a high-speed rail link between Singapore and Kuala Lumpur, estimated to be completed by 2022 and the construction is expected to begin in 2017, with 7 stops i.e. Kuala Lumpur, Putrajaya, Seremban, Ayer Keroh (Malacca), Muar, Batu Pahat and Nusajaya (Johor). A rapid transit system linking Singapore s Mass Rapid Transit system with Johor Bahru was also proposed. 47

48 Strengths (Cont.) Synergistic and Integrated Operations In-house construction, civil engineering and building materials division offers synergistic benefits. Integrated building and civil construction work ensure that building and construction works are of consistently good quality and completed on time at low costs. In-house building materials trading arm ensures timely supply of building materials at competitive prices. Capable Management Top management has almost 30 years experience in property and construction industry. 48

49 Strengths (Cont.) Financial Strength Healthy balance sheet: net gearing at only 0.29x as at 31 January Strong financial position allows for pre-purchase of building materials and pre-building of properties to mitigate impact of rising building material prices. 49

50 Sen Strengths (Cont.) Earnings Per Share Series Financial Year 50

51 RM'mil Strengths (Cont.) Revenue Revenue (RM'mil) Financial Year 51

52 RM'mil Strengths (Cont.) Profit Before Tax PBT (RM'mil) Financial Year 52

53 BUSINESS OUTLOOK 53

54 Business Outlook The Board expects the Group's performance to remain satisfactory but expect the market conditions to remain uncertain in the near term in view of the various cooling measures implemented by the government, including tight credit control by banks, the effect of implementation of the Goods and Services Tax ( GST ) in April 2015 and weak Ringgit. Johor's property market expected to be remain stable especially Iskandar Malaysia in view of the government s effort in promoting Iskandar Malaysia and the expected growth in demand arising from the enhanced bilateral collaborations between Malaysia and Singapore. Property development and construction operations to remain as the main profit contributors for the Group in financial year

55 Business Outlook (Cont.) Business outlook for Crescendo Group in medium to long term is expected to be good for the following reasons: Good rental market - Rental market for industrial properties is expected to be good as it can cater for industrialists who are currently not ready to enter into purchase commitments. - Property investors will also be keen to buy our tenanted industrial properties because they can get a high return for their investment. Malaysian property price remains one of the lowest in the region - Attracting international property developers, operators and investors to invest in Malaysian property sector will lead to increase in property values, especially land with international market potential. - Malaysian real estate remains attractive in terms of price stability, value and significant potential appreciation. Export sales to Singapore by pre-cast operation involves potential contracts of supplying precast columns and beams for buildings, segmental ring and jacking pipe. 55

Business Outlook (Cont.) Prime Location - Out of our total land bank of 2,846 acres, 1,535 acres of our converted land bank is located within prime Iskandar Malaysia area.

56 Business Outlook (Cont.) Prime Location - Out of our total land bank of 2,846 acres, 1,535 acres of our converted land bank is located within prime Iskandar Malaysia area. Improvement in residential property market - Current oversupply in high rise development and weakening ringgit have shifted demand to landed residential and more affordable properties. - Demand on landed residential and more affordable properties to improve in view of better economic growth and active developments within Iskandar Malaysia. All property transactions including those between foreigners and non-bumiputeras will no longer require Foreign Investment Committee s approval. Effective 1 January 2015, My First Home Scheme will increase house prices limit from RM400,000 to RM500,000 as announced in Budget 2015 on 14 October This will boost the sales of houses in our new Bandar Cemerlang housing project. 56

57 THANK YOU 57

58 APPENDIX 58

59 Group s Performance for the Past 3 Years * Revenue (RM 000) 282, , , ,570 Profit Before Tax (RM 000) 79, , ,695 36,471 Profit After Tax (RM 000) 59, , ,540 24,039 Margin - Profit Before Tax (%) Profit After Tax (%) Share Capital (RM 000) 195, , , ,462 Shareholders fund (RM 000) 595, , , ,532 Earning Per Share (sen) PE Ratio (times) Return on Capital Employed (Pre-tax) 11.4% 18.0% 14.2% 3.3% Return on Shareholders equity (Pre-tax) 13.4% 22.1% 18.5% 4.3% Return on Total Assets (Pre-tax) 10.2% 16.0% 12.7% 3.0% Gearing (times) Note: * Based on unaudited 12 months results ended 31 January

60 Analysis by Segments REVENUE PROFIT Margin 2015 * * *2016 (RM 000) (RM 000) (RM 000) (RM 000) % % Property development 215,526 97,928 87,303 35, Construction 164, ,553 7,632 8, Less: Inter-segment sales (137,340) (108,707) (3,957) (6,505) Property Development & Construction 242, ,774 90,978 36, Manufacturing & trading 83,162 86,326 4,914 10, Property investment ,189 (298) Management services & others 19,853 14,592 17,503 7, Less: Inter-segment eliminations (76,354) (16,741) (7,561) (8,460) Unallocated expenses (4,230) (4,249) Finance cost (3,097) (5,768) TOTAL 268, , ,696 36, Note: * Based on unaudited 12 months results ended 31 January

61 Results by Segment (FY2016) REVENUE Management services and others 3% Manufacture of concrete products 42% Property Development & Construction 55% 61

62 Results by Segment (FY2016) PROFIT (EBIT) Manufacture of concrete products 22% Property Development & Construction 78% 62

63 CORPORATE FACT SHEET Business Activities Property Division Construction Division Others Property Development Resort Development (future) Building Construction Civil Engineering Concrete Products Education Property investment & Management Services 63

64 CORPORATE FACT SHEET (Cont.) Crescendo Corporation Berhad ( D) 100% Crescendo Education Sdn Bhd ( T) 100% Crescendo Properties Sdn Bhd ( A) 100% Crescendo Development Sdn Bhd ( D) 70% Panoramic Jaya Sdn Bhd ( D) 100% Unibase Construction Sdn Bhd (22898-A) 100% Panoramic Industrial Development Sdn Bhd ( K) 100% Crescendo Commercial Complex Sdn Bhd ( A) 100% Panoramic Land Sdn Bhd ( T) 100% Medini Capital Sdn Bhd ( X) 100% Crescendo International School Sdn Bhd ( formerly known as Crescendo Creative Education Sdn Bhd) ( V) 55% Crescendo International College Sdn Bhd ( T) 70% Crescendo Jaya Sdn Bhd ( X) 95% Crescendo Land Sdn Bhd ( M) 79.12% Unibase Resources Sdn Bhd ( V) 100% Unibase Corporation Sdn Bhd ( P) 70% Repute Ventures Sdn Bhd ( V) 60% Unibase Concrete Industries Sdn Bhd ( A) 80% Unibase Jaya Sdn Bhd ( H) 100% Ambok Resorts Development Sdn Bhd ( M) 100% Unibase Trading Sdn Bhd ( U) 51% (Effective Int) Unibase Pre-Cast Sdn Bhd ( H) 70% Unibase Quarry Industries Sdn Bhd (fka Repute Corporation Sdn Bhd ( D) 86% Repute Construction Sdn Bhd ( P) 64

65 CORPORATE FACT SHEET (Cont.) Listed On: Issued Shares: (31 March 2016) Market Capitalization as of 31 March 2016: Par Value Per Share: NTA/Share: (31 January 2016) April 8, 1997 (Main Board) mil RM485 mil RM1.00 RM3.04 Major Shareholders: Sharikat Kim Loong SB (61.99%) (31 December 2015) Citigroup Nominees (Tempatan) SB (5.77%) Public Nominees (Tempatan) SB (2.12%) Amanahraya Trustees Berhad (1.99%) Financial Year End: 31 January 65

66 CORPORATE FACT SHEET (Cont.) Corporate Address: Lot 18.02, 18 th Floor, Public Bank Tower, 19, Jalan Wong Ah Fook, Johor Bahru, Johor, Malaysia Telephone number: Fax: Website:

67 BOARD OF DIRECTORS Name Position Gooi Seong Lim Gooi Seong Heen Gooi Seong Chneh Gooi Seong Gum Gan Kim Guan Yeo Jon Eeyo Jon Thiam Tan Ah Lai Chew Ching Chong Gooi Khai Shin Gooi Chuen Howe Chairman & Managing Director Executive Director Executive Director Executive Director Senior Independent Director Independent Director Independent Director Independent Director Alternate Director to Gooi Seong Lim Alternate Director to Gooi Seong Heen 67

( D) Corporate Profile

( D) Corporate Profile (359750-D) Corporate Profile 21 November 2009 Introduction to Crescendo Corporation Berhad ( CCB ) Group CCB is listed on the Main Board of Bursa Malaysia Securities Bhd with a market capitalisation and