Corporate Presentation

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Corporate Presentation
Presented by Ms Low Su Ming, Joint Managing
Director 9 April 2008
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Corporate Profile
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Corporate Profile
A long-established property developer in
Malaysia...
Background

• Established in Malaysia on 19 January 1961
• Listed on Main Board of KLSE (now Bursa Malaysia
  Securities Berhad) on 3 July 1969
• The Groups current principal activities include
  land ownership and property development

With the recent divestment of City Square
Center, the Group no longer has interest in
office building, hotel, and retail properties
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Corporate Profile
Performed in line with the market but still
trading at steep discount to book value of
RM1.00/share
Share Price Performance
APL
KLCI
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Corporate Profile
Offers not only high-end development in KL...
Core Business Property Development

• Serviced Residences
• Premium development with full facilities in the
  heart of KL city (Jln Aman)
• Tower 1 (168 units) and Tower 2 (215 units) on
  1.42acres freehold land
• Apartment size 592sf to 4,983sf

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Corporate Profile
but also affordable products in mixed township
development for the masses...
Core Business Property Development (cont)

• BTP, located in Rawang, is positioned to be an
  Integrated Northern Urban Regional Center
• RM4 billion-GDV development project on 2,670-acre
  leasehold land
• 5 distinct corridors Value, Quality, Business,
  Recreation, and Premium

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Corporate Profile
Increasingly more institutional value
investors high free float level ensures ample
trading liquidity..
Major Shareholder

• Institutional shareholders include
• Foreign funds QVT Fund LP, CIM Global Property
  Fund, Alexandra Global Master Fund, Deutsche
  Bank, Morgan Stanley Co International, Merrill
  Lynch International, DFA Emerging Markets Fund
• Local funds Skim Amanah Saham Bumiputera, LTAT,
  Ministry of Finance, PNB

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Financial Highlights
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Financial Highlights
Increased sale of better-margin products, thanks
to myHabitat
FY07 Income Statement

• FY06 loss from discontinued operations was mainly
  due to the RM23 mil impairment in value of the
  City Square Center investment property
• An interim dividend of 1, or 0.73 sen/share,
  less 27 income tax paid on 28 August 2007

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Financial Highlights
Revenue recognition of property sales speeding up
as construction accelerated
FY07 Revenue Segmentation (continuing operations)
FY07 Group Revenue RM32.8 million
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Financial Highlights
A clean bill balance sheet high flexibility
for expansion in core business and other
opportunities
FY07 Balance Sheet (Highlights)
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Financial Highlights
Value unlocked with sale of investment property
Financial Impact from Divestment of City Square
Center

• On 15 Aug 2006, the Group entered into a
  conditional SP Agreement to dispose of City
  Square Center (comprising City Square Shopping
  Complex, Crown Princess Hotel KL, and the Empire
  Tower) for RM680 million.
• The disposal was completed on 15 June 2007, with
  utilization status as below
• Divestment resulted in healthy and
  expansion-ready balance sheet

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FY07 Operations Review
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Accelerating construction of MyHabitat to
positively impact the bottom line in FY2008 and
FY2009
Operations Review
Property Sales (units booked/sold)
As at 31 December 2007, take up rate at 86
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Further development in BTP amenities to spur sale
growth..
Operations Review
Property Sales (units booked/sold)

• To date, the township was further enhanced with
  community living amenities, e.g. additional
  access roads, a mosque, schools, a college, and
  the completion of further 9-hole golf course

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Market Outlook
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Malaysia Property Market
Initiatives to further boost the sector

• New EPF scheme allows 30 monthly withdrawals to
  finance housing loan installments
• Scheme to free up to RM9.6bil annually, assuming
  utilization by all 5.4mil EPF contributors
• Homebuyers can afford more expensive houses than
  before
• Expected to increase home ownership rate (2006
  67)
• RM9.6 bil exceeds RM4.2 bil worth of residential
  property stock overhang in Malaysia
• Elimination of Real Property Gains Tax
• To encourage property investment

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Market Outlook
Optimistic outlook for the Malaysian economy

• Malaysia recorded 7.4 GDP growth in 4Q07, and
  6.3 growth in 2007
• Construction sector grew 4.7 in 4Q07
• Backed by a stronger services sector i.e.
  greater activity in business and finance
  services, and a more robust tourism sector
• Implementation of the Ninth Malaysia Plan (9MP)
  projects gathering steam
• Construction of public infrastructure and
  initiatives to improve public services delivery
  anticipated to improve consumer and business
  sentiments
• The EPF withdrawal scheme would increase
  households disposable income levels

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Market Outlook
Demographic trends bode well for house-buying

• Relatively young population in Malaysia augurs
  well for purchases of long-term residential
  property
• Median population age of 23 years old indicates
  strong target market for first-time homebuyers
• 32 of Msias 25.3mil population is aged between
  20 to 39 years old ripe segment for first time
  buyers and upgraders
• Rate of urbanization expected to accelerate
• 9MP expects 63.8 of the population to be living
  in urban areas by 2010
• Greater evidence of discerning demand for pocket
  developments of niche and high-end property
• Concept of city living an attractive
  proposition evidenced by the large number of
  city-based property launches

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Growth Strategies
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Growth Strategies
Integrated business strategy for the long-term
Malaysia MyHabitat High-end residences BTP
Affordable housing
Japan Mixed Property Development
China Mixed Property Development
Indonesia Oil Palm Plantation
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Latest Developments
Venturing into property development abroad to
realize high-growth prospects
Property Development in Changshu, China

• To undertake mixed development on 65,421 sq m
  land in Changshu

• Land purchased for RMB 99.1 million (RM46
  million)
• Mixed development comprises
• 70 commercial properties Retail outlets, SOHO
  units
• 30 residential properties High-end and
  mid-range apartments
• Project GDV RMB840 million (RM390 million)
• Quick turnaround of 3 to 4 years
• First project to enable APLand gain initial
  presence in Chinas growing property development
  sector
• Aims to strengthen its foothold in the long-run

Changshu is located 72km from Shanghai and 43km
from Suzhou
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Latest Developments
Well-placed in growth catchment area
Snapshot of Changshu, China

• Ranked No. 2 in Chinas top 100 national counties
• gt300 Foreign Invested Enterprises, with FDI
  exceeding USD3 billion
• Population of 1.05 million people with growing
  expatriate community

• Evidence of growth in Chinas Tier Two cities
• Mixed development is ideal for a growing populace
  
• Procured land located next to facilities of
  Foxconn Technology and Toyota, as well as the new
  Government Administrative Centre
• http//www.changshu-china.com

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Latest Developments
Proposed development in Japan to cater to
international tourists
Property Development in Hokkaido, Japan

• 3,082 sq m land located within Niseko Ski Resort
  purchased for 579.5 million yen (RM18.9
  million)
• To build 40 units of high-end apartments for sale
• Project GDV RM140 mil
• Quick turnaround of 2 to 3 years, targeted for
  completion in 2009
• Building is within walking distance (?? m) to the
  ski lifts
• (to insert location map to show where acquired
  land is within the ski resort)

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Latest Developments
International repute of Sapporo to see ready
demand for the property development
Snapshot of Sapporo city in Hokkaido, Japan

• Sapporo is the capital of Hokkaido, and the fifth
  largest city in Japan
• Population of 2 million hosted the Olympic
  Winter Games in 1972
• Besides its winter-related destinations, other
  attractions include
• Shiroi Koibito Chocolate Park Chocolate factory,
  shop and museum
• Sapporo Beer Museum Museum of Sapporo Beer
  Breweries
• Niseko is the biggest and leading ski resort in
  Sapporo
• Attracts gt2 million visitors from Japan and
  across the world
• A year-round attraction for tourists from
  Australia, Hong Kong and Europe, due to
• Long ski season (November-April) in deep powder
  snow
• Other activities during off-ski season Hiking,
  canoeing, rafting
• Hosts the annual Sapporo Snow Festival featuring
  spectacular snow and ice sculptures

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Latest Developments
Exposure into plantation sector to broaden
Groups long-term recurring income base
Oil Palm Plantation in Indonesia

• Acquired 36,000 ha for Rp. 85.5 bil (RM32.4mil)
• Intend to cultivate oil palm in East Kalimantan,
  for which it has obtained the location permit,
  and will be obtaining 35-year lease title.
• Land cost (36,000 ha) USD8.5 mil (RM29.6 mil)
• Upon undertaking land preparation and purchase of
  seedlings, the Company is to plant fast-yielding
  oil palm progressively with targeted up to 10,000
  ha per year
• Expected to reap first revenue in Year 3
• Total investment for planting and land cost
  RM400 mil over 5 years
• Acquisition to broaden the Groups long-term
  recurring income base and mitigate cyclical risk

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Investment Merits
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MyHabitat to turn the Group around FY08 and FY09
to see earnings growth and enhanced margins
Investment Merits
New Residential Project Launch (1H08)
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Investment Merits
AP Land, an investment with potential capital
appreciation in the medium term

• Earnings Prospects
• Valuation yet to be fully appreciated
• Currently more than 50 discount to book NTA per
  share (as at 31 Dec 2007)
• Local growth drivers
• High-end residential property demand augurs well
  for myHabitat
• Enough land bank in BTP to last for at least the
  next ten years
• Overseas foray
• Oil palm plantation to provide recurring income
  from FY2010
• Maiden projects in China and Japan, with quick
  turnaround, to elevate the Group to be a regional
  property developer

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Thank You
IR Contacts LEE Swee Chan (swee.chan_at_apland.com.
my / 03-2163 1200)