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This presentation may not be copied or otherwise reproduced without the written consent of DBhd

DAMANSARA REALTY BERHAD

CORPORATE AND BUSINESS UPDATE

Investor & Media Relations

Upload Version: 5

12 July 2017

1


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

This presentation may not be copied or otherwise reproduced without the written consent of DBhd3

Corporate Overview1


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


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

5


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

6


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

7


Corporate & Business Update2


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

9

Legacy issues led to three consecutive years of financial losses between FY2014 and FY2016


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


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”)

11


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


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


Restructure and Integrate

the Non-Property OperationsStrategy 1


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


The Clients

16

Our esteemed Clients, to list a few


RAPID Pengerang

SINGAPORE

Presence in Malaysia & Singapore

TMR Urusharta (M)

HC Duraclean

Metro Paking (M)

LEGEND

17


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

18

Our strong existence in parking management business in Philippines


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.

19

Significant contracts awarded by PETRONAS


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


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

21

Our presence in Healthcare Industry, actively involved in Hospital Planning and Project Management Consultancy Services

Project Management Consultancy (PMC) Services offered


Streamline and Accelerate

Group’s Property PortfolioStrategy 2


• 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


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

24

Central Park Integrated Township Project


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


Freehold land in prime location within Iskandar

Malaysia's Flagship Zone A.

5 min Easy accessibility to Skudai, Pasir Gudang &

Tebrau Highway

25

Total Land Size

0.68 acre

Sales Price

From RM 2.0 Mil. to

RM 4.8 Mil.

Total GDV

RM 39 Mil.


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


Guarded and gated neighbourhood

Safe and healthy environment

Garden facing facilities

Damansara Hills 1 (DH1) Kuantan, Pahang

26


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


Located in Precint 5 Putrajaya

Government personnel

Competitive price

PPA1M & Commercial Development in Putrajaya

27


Improve Corporate Governance, Elevate Corporate

Profile and Seek Capital Market OptionsStrategy 3

28


• 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

29


• 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

30


Financial Review3


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)

32

FY2016 Financial Review


3 Years Financial Performance

Higher loss in 2016 was due to Exceptional Items (“EI”).

33

RM’Mil.


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 %


Outlook4


• 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


Media and Investor Contact Information

• WeR1 Communications Sdn Bhd

• Ian Lau | [email protected]

• Sophia Halim | [email protected]

• Nazlina Quadir | [email protected]

mailto:[email protected]

mailto:[email protected]

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