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Corporate Presentation
Unaudited Financial Information
of Capital City Group for 3Q2017 & 9M2017
29 May 2017
1
CAPITAL WORLD LIMITED(Formerly known as Terratech Group Limited)
Disclaimer
Information in this presentation may contain forward-looking statements that reflect the current views of Capital World
Limited (the “Company” and together with its subsidiaries, the “Group”) with respect to future events and financial
performance. These views are based on the current assumptions which are subject to unknown risks and uncertainties,
which may change over time. No assurance can be given that future events will occur, that projections will be achieved,
or that the assumptions are correct. Actual results may differ materially from those anticipated as a result of the risks
faced by us. The views expressed here also contain some information derived from publicly available sources that have
not been independently verified.
This presentation does not constitute or form part of any opinion on any advice to sell, or any solicitation of any offer to
subscribe for, any shares nor shall it or any part of it nor the fact of its presentation form the basis of, or be relied upon in
connection with, any contract or investment decision or commitment whatsoever.
The Group does not intend, and does not assume any obligation, to update any industry information or forward-looking
statements set forth in this presentation to reflect subsequent events or circumstances.
Despite the fact that utmost care has been taken to ensure that the information on this presentation slides are as
accurate as possible, the Group does not accept any liability for errors or omissions nor for the consequences of using
the information or the material available in this presentation.
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4
8
14
18
21
Result Highlights
Unique Business Model
Projects
Outlook & Business Strategies
Q&A
3
Contents
RESULT HIGHLIGHTS
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37,095
81,637
21,169
74,62569,879
120,282
0
50,000
100,000
150,000
FY2015 FY2016 3Q2016 3Q2017 9M2016 9M2017
Revenue (Note 1)
RM’000YoY Growth = 120.1% YoY Growth = 72.1%
(1.7.2014 – 30.6.2015) (1.7.2015 – 30.6.2016) (1.7.2015 – 31.3.2016) (1.7.2016 – 31.3.2017)
9.5% 24.8% 22.3%% of Completion (Cumulative)
Financial year end: 30 June
QoQ: Quarter-on-quarter
YoY: Year-on-Year
Note 1: The financial information of the Capital City Group is solely in respect of Altimate Ventures Limited, Rise Expedition Global Limited, First Star Ventures Limited and their respective subsidiaries.
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Capital City Group
46.0%
(1.1.2016 – 31.3.2016) (1.1.2017 – 31.3.2017)
QoQ Growth = 252.5%
27,874
62,584
15,979
55,08753,540
92,569
17,313
57,628
14,901
53,457
50,406
86,901
11,490
42,912
10,694
38,40236,327
62,261
75.1% 76.7% 75.5%
73.8%76.6% 77.0%
-40.0%
-20.0%
0.0%
20.0%
40.0%
60.0%
80.0%
100.0%
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
90,000
100,000
FY2015 FY2016 3Q2016 3Q2017 9M2016 9M2017
Gross Profit EBITDA Net Profit Gross Profit Margin(1.7.2014 – 30.6.2015) (1.7.2015 – 30.6.2016) (1.7.2015 – 31.3.2016) (1.7.2016 – 31.3.2017)
RM’000
Profitability
Financial year end: 30 June
EBITDA: Earnings before interest, tax, depreciation and amortisation
Margins (%) Gross Profit (%) EBITDA (%) Net Profit (%)
FY2015 75.1 53.2 31.0
FY2016 76.7 75.1 52.6
3Q2016 75.5 70.4 50.5
3Q2017 73.8 71.6 51.5
9M2016 76.6 72.1 52.0
9M2017 77.0 72.2 51.8
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Capital City Group
(1.1.2016 – 31.3.2016) (1.1.2017 – 31.3.2017)
RM(‘000) As at 30 June 2016
(Audited)
As at 31 March 2017
(Unaudited)
Current assets
Non-current assets
190,401
276,403
259,233
311,890
Total assets 466,804 571,123
Current liabilities
Non-current liabilities
268,201
152,894
334,433
128,735
Total liabilities
Total equity
421,095
45,709
463,168
107,955
Cash and bank balances
Hire purchase facilities from bank
Return on assets (Note 1)
Current ratio (Note 2)
14,081
131
9.2%
1.7
16,965
96
14.5%
1.7
Financial Position
Note 1: Return on assets for 9M2017 is calculated based on annualised net profit divided by total assets as at 31 March 2017.
Note 2 Deferred revenue of approximately RM157.7 million and approximately RM186.4 million as at 30 June 2016 and 31 March 2017 respectively were excluded from the current liabilities as deferred revenue is the book
entry and non-cash in nature
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Capital City Group
UNIQUE BUSINESS MODEL
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Joint venture partnership with
landowners
3 key aspects • Project & Partner
Identification
• Conception & Design
• Implementation
Innovative
integrated
projects
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Business Model
Capital - Light
Strategy• Joint venture with
landowners
• Enhance land value
through innovative
design
Low capital outlay Low levels of
borrowingsWin-win approachEconomic benefits
10
Competitive Strengths
Traditional Developer
Purchase of Land
RM40 million (40% of land cost)
Loan: RM60 million (60%)
Interest: 7% p.a. for 10 years tenure
amounting to RM42 million
Quarterly instalment: RM2.55 million
Our Business Model
Joint Venture
Initial
paymentRM0.75 million
Less cash
flow burden
Progressive instalment to land owner
Pay as we sell, a split of 70% (us): 30%
(Landowner), subject to a cap of RM100
million
Pay off in 5 years when project is
completed
v.s.
ILLUSTRATION – Land Entitlement of RM100 Million (Note 1)
Note 1: All numbers are assumed for illustration purpose only.
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Competitive Strengths
CAPITAL WORLD LIMITED(formerly known as Terratech Group Limited)
Property
Development
Capital City
Austin City
Sitiawan
Wellness
Hub
Marble
Business
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Group’s Business
Premium quality
Marble
Exclusive rightsto marble quarry in Malaysia
up to January 2044
20.03* millionm3 of marble resources
Synergistic to our projects
* Extracted from Annual Report of Terratech Group Limited for the year ended 31 March 2016
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Marble Business
PROJECTS
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3 towers
Serviced
Apartments
16 + 18storeys
1,655Retails units
21World’s top
capital cities in
one mall
Capital 21 Mall• Cineplex
• Children’s theme
park
• World Museum
6Storeys
Thematic
Festival Mall
Hotel/
Serviced
Suites
315Hotel rooms branded
Hilton Garden Inn
630Units of hotel-style
serviced suites
15 storeys
690 units
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Current Project - Capital City
Retail mall
Office suites
Hotel and residential
apartments
Location
Tebrau, Johor Bahru
Land size
Approximately
27,670 sq m
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Upcoming Project - Austin City
Mixed commercial
and residential
development
Health and wellness
concepts
Destination for
tourists
Location
Pengkalan Baharu,
Perak
Land size
Approximately
188,062 sq m
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Upcoming Project - Sitiawan Wellness Hub
OUTLOOK & BUSINESS STRATEGIES
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Business Strategies and Future Plans
Short Term:
• Focused on delivery of Project Capital City
• Realise synergies between the property development projects
and the existing marble business
• Launch Project Austin
Medium Term:
• Launch Project Sitiawan Wellness Hub
• Diversify into different development types
Long Term:
• Extend successful business model to new projects and markets
in Malaysia and rest of Southeast Asia
Myanmar
Philippines
Indonesia Vietnam Cambodia Thailand
Singapore Brunei Laos
GDP growth:
6.2% over 2017- 20211
Middle income classHalf a billion by 20302
Population growth:
18% from 600 million to
700 million by 20303
1 Economic Outlook for Southeast Asia, China and India 2017,
http://www.keepeek.com/Digital-Asset-Management/oecd/development/economic-outlook-for-southeast-asia-china-and-india-2017_saeo-2017-en#.WLjlPTuGM2w#page19
2 ASEAN Economic Outlook Forum 2017 https://www.iesingapore.gov.sg/IE-Blog/ASEAN-Economic-Outlook-Forum-2017
3 Asian Development Bank Institute, https://www.adb.org/sites/default/files/publication/159312/adbi-asean-2030-borderless-economic-community.pdf 20
Southeast Asia (ASEAN)
Q & A
Thank you