PRESENTATION TO SHAREHOLDERS
86th Annual General Meeting
26 September 2013
E&O’s 3 years Business Plan
FYE 2014 – FYE 2016
Current Assessment : Building Foundations
2014 – 2016 Business Plan : Growth & Development
Branding – Regional & International Exposure
Strategic Partnerships – Alliances & Collaborations
Talent – Attract, Retains & Motivate
Growth Engines
Delivering Shareholder Value
E&O’s Corporate Values
Conclusion
Current Assessment : Building Foundations
2014 – 2016 Business Plan : Growth & Development
Branding – Regional & International Exposure
Strategic Partnerships – Alliances & Collaborations
Talent – Attract, Retains & Motivate
Growth Engines
Delivering Shareholder Value
E&O’s Corporate Values
Conclusion
Current Assessment
Building the
Foundations
Next
Growth and
Developments
Future
2011 – 2013
2014 – 2016
> 2016
 E&O has grown bigger and stronger over the past 10 years
 Whilst its financial performance has been strong over the past 5 years, it has had
to adapt and respond to markets / the environment in order to stabilize the
business
 Currently in a strong financial position, the Group has begun to establish a
concrete roadmap for the future
2011 – 2013 Business Plan : Assessment
Strategic Thrusts
First Stage of Development
Assessment
KPI 1 :
Regional and international exposure of the
brand within the group
•
•
AFC
Building non property portfolio
Efforts taken but minimal
effectiveness and
conversion
KPI 2 :
Strategic alliances and collaboration with
well renowned & international institutions
•
•
•
Sime Darby
Khazanah / Temasek
Mitsui Partnership
Significant achievement
and success. Need to
operationalize
KPI 3 :
Development of new growth engines
•
•
Iskandar Malaysia : Medini
International : London
Laid the foundations for
diversification
KPI 4 :
Significant
bottom-line
sustainable profits
•
RM 250 - 300 million profit
cumulaive (PAT)
Target achieved
KPI 5 :
A.R.M. Talent - to attract the best talents,
retain and motivate existing top performers
Recruitment of top tier talent
There is a need to define
and deliver value
proposition
growth
and
•
E&O shares continued to rise from *RM1.16 to **RM1.58 marking a 36% total appreciation
Market capitalisation has grown from *RM977 million to **RM1.8 billion
E&O succeeded in building partnerships, achieved the financial targets, laid foundations for a diverse
portfolio but faced the challenge to reach out regionally and internationally effectively as well as build and
nurture top tier talent in the organization
Source : Bloomberg
*1st April 2011 ; **31st March 2013
Current Assessment : Building Foundations
2014 – 2016 Business Plan : Growth & Development
Branding – Regional & International Exposure
Strategic Partnerships – Alliances & Collaborations
Talent – Attract, Retains & Motivate
Growth Engines
Delivering Shareholder Value
E&O’s Corporate Values
Conclusion
2014 – 2016 Business Plan
Building the
Foundations
Next
Growth and
Developments
Future
2011 – 2013
2014 – 2016
> 2016
 E&O has taken a different roadmap to sustainable growth versus its competitors; concentrating on
building its brand before accelerating its growth and development
 The challenge is to maintain its strong brand presence in spite of this accelerated growth phase
 The strategic thrusts and vision outlined in the past business plan remain relevant but require a shift in
focus and perspective
 E&O is committed to sustainable growth beyond the 3 year plan ensuring that the team always keeps
an eye on the future
E&O – Next 3 years and beyond
Building the
Foundations
Next
Growth and
Developments
Future
2011 – 2013
2014 – 2016
> 2016
Cumulative PAT
target for
FY2014 – FY2016
RM450m
and stretch of
RM500m
Sustainable
GDV and PAT
per annum
Initial Target
RM250m
Achieved
RM262.6m
The current strategic framework is reframed to
strengthen the brand and deliver sustainable
profits
Brand, Talent and Strategic
partnerships are key drivers in
developing each growth
engine
Regional and
International
Exposure of
the Brand
Reinvestments
Strategic
Partnerships alliances and
collaborations
Development
of new
Property
Growth
Engines
Real Time
Opportunities
to
ARM Talent
Significant bottom-line growth and
sustainable profits
Key drivers
Growth engines
The delivery of the
growth engines will
have an affect on the
bottom line with the
proceeds reinvested
Current Assessment : Building Foundations
2014 – 2016 Business Plan : Growth & Development
Branding – Regional & International Exposure
Strategic Partnerships – Alliances & Collaborations
Talent – Attract, Retains & Motivate
Growth Engines
Delivering Shareholder Value
E&O’s Corporate Values
Conclusion
Branding - Regional & International Exposure
Framework (Local Supply – Global Demand)
Rest of World
China
Japan
Expatriate Community
Local Supply – Growth Engines
Penang
Malaysian Diaspora
UK
KL/Klang Valley
Iskandar
Strong Regional &
International Brand
Singapore
Global Demand outstrips
Local Supply
Indonesia
Growth Trajectory
uninhibited by
competition
Sustainable profits &
growth opportunities
Current Assessment : Building Foundations
2014 – 2016 Business Plan : Growth & Development
Branding – Regional & International Exposure
Strategic Partnerships – Alliances & Collaborations
Talent – Attract, Retains & Motivate
Growth Engines
Delivering Shareholder Value
E&O’s Corporate Values
Conclusion
Strategic Partnerships : Alliances & Collaborations
Framework
Regional
Strategic
alliances and
collaboration
with well
renowned &
international
institutions
Operationalizing
Existing Partnerships
Infusing International
design and standards in
regional partnerships
Pursuing additional international partnerships and operational
collaborations
Marketing / Sales & Distribution
Design / Development
International
Establishing new
international
partnerships
Hospitality / Leisure collaborations
Joint Investment
Current Assessment : Building Foundations
2014 – 2016 Business Plan : Growth & Development
Branding – Regional & International Exposure
Strategic Partnerships – Alliances & Collaborations
Talent – Attract, Retains & Motivate
Growth Engines
Delivering Shareholder Value
E&O’s Corporate Values
Conclusion
Talent – Attract, Retain & Motivate
Framework
Employee Value Proposition is
“Real Time Opportunities”
E&O
Exciting Opportunities
Nurturing Talent
Community Relations
(A.R.T)
E&O
Enriching
Opportunities
E&O
Empowering
Opportunities
Experiential Training
(Training and on the
job learning)
Career Pathing
Skills & Talent
Curriculum
Leadership
Development
Business Life Skills Programme
Employee Engagement
LTIP – Performance
Management
Current Assessment : Building Foundations
2014 – 2016 Business Plan : Growth & Development
Branding – Regional & International Exposure
Strategic Partnerships – Alliances & Collaborations
Talent – Attract, Retains & Motivate
Growth Engines
Delivering Shareholder Value
E&O’s Corporate Values
Conclusion
Growth Engine 1 : Penang
STP 1
STP 2
STP 2
STP 1
Almost completed with a
series of launches :
• Andaman (final block)
• Marina – Office /
Service Apartments
• Super terraces
•
•
760 acres facing STP 1
Split into 2 islands,
each having a different
composition of
residential and
commercial element
Strategy
Strategy
Launch the respective
developments over the
next 3 years as per
schedule
Operationalize STP 2
In the immediate term the focus is to complete the launches of the STP 1 developments.
STP 2 will be critical and the emphasis for the next 3 years is to operationalize it.
STP 2 : What is being proposed?
 Up to 12,000 new homes
 8 new districts
 88 acres of open space which includes a network of green
spaces/squares, park grounds, public spaces and coastlines
 Over 12km of new island waterfront
 International marina and yacht club
 Leisure and cultural facilities including theatre and aquariums
 New shopping high streets
 A new commercial district
of hotels and office
space required
by MNCs
The Masterplan : Key Components
Total area : 760 acres
Land use
Stage A
Stage B
Acres
253
507
Residential
41%
47%
Commercial &
mixed use
34%
15%
Public spaces,
infrastructure
& utilities
25%
38%
Where we are right now
 April 2011 - An Approval-in-Principle for the proposed project
was obtained from the Penang State Government
 24 August 2013 - A Public Dialogue was held to obtain public
feedback on the detailed environmental impact assessment
(DEIA) study
 We are currently collating questions raised by the public and
putting together answers to be compiled in the DEIA Report
which is targeted to be submitted to the Department of
Environment (DOE) in Q4 2013
Growth Engine 2 : Iskandar
Avira
•
•
•
Collaboration between Khazanah and Temasek
Wellness Sanctuary / Resort complemented with
Medini Estate which includes launches of Terrace
Houses, Serviced Apartments, Semi-D, Bungalows,
Commercial and Condos
Launch over 2013 – 2019
Strategy
Deliver on the Medini development and identify / develop
complementary developments in the Iskandar region
Growth Engine 2 : Iskandar
Maiden Launch
Q4 2013
Terrace homes
208 units
Preliminary estimate for
Avira masterplan
Product
Units
Terraces
458
Semi-Detached
122
Bungalows
62
Serviced
Apartments
1,500
Condominiums
2,000
Commercial
470,000 sq ft
GFA
Growth Engine 3 : KL/Klang Valley
KL City Centre
Kemensah Heights
•
•
•
•
•
The Mews
The Peak
Jalan Conlay
•
310 acres
Greenfields/
Agricultural Land
At preliminary stages
in developing a unique
concept that
differentiates from
other KL developments
Strategy
Strategy
Launch the respective
developments over the
next 3 years as per
schedule
Begin development of
Kemensah Heights
E&O will focus on larger land banks with Kemensah Heights as a key development in the
pipeline. It is critical to look into developing 2 - 3 additional developments to sustain our
next phase of growth.
Current Launch : The Mews
Launched Sept 2013
256 units : Achieved 70% take-up
The Proposed Acquisition: Elmina West
Elmina
West
The Proposed Development
 Memorandum of Agreement signed on 25th September 2013
between E&O and Sime Darby to develop on a site of
approximately 135 acres in Elmina West
 Proposed Wellness themed concept with a dedicated Wellness
Centre to comprise mixed commercial and lifestyle residential
development
 An extensive highway network is conveniently connected to
the Guthrie Corridor Expressway
 Proposed new DASH Highway expected to complete in 2016
will connect straight to the Penchala Link/Mont Kiara, cutting
travel time to approximately 15 minutes
Princes House, London
Within close proximity to the
internationally
renowned
Covent
Garden Market, the Royal Opera House
and some famous hotels and theatres
such as The Waldorf, The Savoy and
within the vicinity of top London’s
renowned
Growth Engine 4 : International
London/UK is the platform to accelerate the international growth engine
building on our current investments
In order to develop a portfolio that delivers growth that translates into
sustainable profits, strong local know how and understanding of the
market is critical
Acquiring and developing the right platform is critical to obtain quick
access to information and capital
This engine can be developed further
once the right platform has been established
Current Assessment : Building Foundations
2014 – 2016 Business Plan : Growth & Development
Branding – Regional & International Exposure
Strategic Partnerships – Alliances & Collaborations
Talent – Attract, Retains & Motivate
Growth Engines
Delivering Shareholder Value
E&O’s Corporate Values
Conclusion
Delivering Shareholders’ Value
Building the
Foundations
Next
Growth and
Developments
Future
2011 – 2013
2014 – 2016
> 2016
 The investments made in the 2014 – 2016 Business Plan will
yield sustainable profits beyond 2016
 This will translate into greater shareholder value
Current Assessment : Building Foundations
2014 – 2016 Business Plan : Growth & Development
Branding – Regional & International Exposure
Strategic Partnerships – Alliances & Collaborations
Talent – Attract, Retains & Motivate
Growth Engines
Delivering Shareholder Value
E&O’s Corporate Values
Conclusion
Introduction of E&O’s Corporate Values :
Why do we need corporate values?
Necessity
In the coming decade values are well on the way to
revolutionizing many areas of the society. Businesses for one
are expected to display a high-consciousness of corporate
social values
Commitment
The greatest potentials for growth of any company are
generated by a commitment to high corporate values
These values
effects :
•
•
•
How we approach one another in the company
How we deal with our suppliers
How we interact with our stakeholders
It is important that E&O being a young company to initiate and incorporate the practice of strong
corporate values, which in turn anchor the future progress and successes of the company
Our Purpose
E&O designs and builds properties that cater to the
aspirational lifestyle needs of discerning individuals
Our Value
We do things differently, always for the better,
with sincerity, integrity and passion
Current Assessment : Building Foundations
2014 – 2016 Business Plan : Growth & Development
Branding – Regional & International Exposure
Strategic Partnerships – Alliances & Collaborations
Talent – Attract, Retains & Motivate
Growth Engines
Delivering Shareholder Value
E&O’s Corporate Values
Conclusion
A Business Plan Built to Last
Building the
Foundations
Next
Growth and
Developments
Future
2011 – 2013
2014 – 2016
> 2016
4 Growth Engines
3 Strategic Thrusts
Penang
Regional / International Exposure
Iskandar
KL/Klang Valley
Strategic Partnerships & Collaborations
International
E&O Corporate
Values
Doing things differently,
always for the better
A.R.M Talent
Sincerity
Integrity
Passion
Thank You