Sime Darby Property Berhad : Appendix 3 – Questions Raised by Shareholders and Responses

APPENDIX 3

SIME DARBY PROPERTY BERHAD

APPENDIX TO MINUTES OF THE 49TH ANNUAL GENERAL MEETING HELD ON 24 MAY 2022 ("49th AGM")

QUESTIONS AND RESPONSES

NO.

QUESTION

RESPONSE

1. Shareholders who have requested and suggested to the The Group is committed towards maximising shareholders'

Board of Directors to consider providing e-vouchers /e-wallets returns via payment of dividends. for shareholders who attended the AGM as a token of

appreciation are as follows:

1. Cik Chea Ah Chun
2. Cik Chua Ai Guat
3. Cik Daberah Ann Danker
4. Cik Goh Wee Wee
5. Cik Hoh Ah Moy
6. Cik Lau Yong En
7. Cik Tan Bee Hoon
8. Cik Tee Tzien Woei
9. Cik Tee Tzien Yung
10. Cik Teh Bee Leh
11. Cik Teh Sue Leng
12. Cik Wong Yoke Tho
13. Cik Yong Yang Har
14. Encik Adrian Tay Kim Ming
15. Encik Chin Foi Men
16. Encik Ho Wing Seng
17. Encik Lee Chong Sing
18. Encik Lee Sze Teng
19. Encik Lee Tuck Feong
20. Encik Lim Pin Yeong
21. Encik Low Len Toong
22. Encik Lum Choong Ying
23. Encik Ronald Danker

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NO.		QUESTION		RESPONSE
	(xxiv)	Encik Tan Chun Kiat
	(xxv)	Encik Tan Kong Ang
	(xxvi) Encik Te Seng Whatt @ Tay Seng Whatt
	(xxvii) Encik Tee Kim Hong
	(xxviii) Encik Teh Peng Tin
	(xxix) Encik Thavarajan A/L Muthiah Pillai
	(xxx)	Encik Warren Tay Kim Leng
2.	Annual Report 2021
2.1	Shareholders who have requested a copy of the 2021 Annual	Thank you for your question. We will request Tricor to arrange
	Report :		for delivery to your address.
	(i)	Cik Tan Swee Eng
	(ii)	Cik Tham Kwan Leng
	(iii)	Encik Cheong Sian Hoe
	(iv)	Encik Chong Yen Fo
	(v)	Encik Lew Tuck Wai
2.2	Shareholders who earlier have requested a hardcopy of the	Our apologies for the inconvenience caused. We will follow up
	annual report but have yet to receive a copy:	with Tricor and have it delivered to you. Thank you.
	(i)	Encik Liew Hin Choy
	(ii)	Encik Wha Kien Loy
	(iii)	Encik Terence Lim Meng Foong
3.	Joint ventures-related matters
3.1	How does our Joint Venture ("JV") with LOGOS go about	(i)	By allowing investors to subscribe for partnership
	raising funds from investors? Is it by way of the JV issuing and		interests in the Fund in which there is shared risk and
	selling bonds to investors, and what are the salient points		upside (not a bond instrument, no fixed
	(coupon rate, tenure) of the bonds? Out of the initial target		coupon/repayment).
	fund size of US $200M, how much funds have we managed
	to raise to-date? (Encik Ong Leong Huat)	(ii)	To date, 50% commitment has been secured, and
				fundraising is ongoing for the balance 50% till end the of
				the year.
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NO.	QUESTION		RESPONSE
		(iii)	Nonetheless, Group is focused on 1st close with this 50%
			in mid-2022.
3.2	The inventory levels of the JV in Battersea increased
	substantially from RM11.710 billion in FY2020 to RM14.217
	billion in FY2021.
	(i) Why have the Inventories surged despite fewer launches	(i)	Increase in inventory balance due to development costs
	in Battersea JV?		incurred during the year.
	(ii) What are the current levels of inventories compared to	(ii)	The Group has yet to announce the financial results
	the levels as at 31 December 2021?		subsequent to 31 December 2021.
	(Encik Lew Tuck Wai)
3.3	Our Melawati Mall has already been in operations for close to	(i)	The operational and financial performance of the mall
	five (5) years and during this period, it has remained in the red		has been impacted by the pandemic over the last two (2)
	most of the time despite achieving reasonably strong		years (MM generated -RM7m losses); with (a) lower
	occupancy of over 80%. Please explain the reasons for its		footfall (~10k/day on average compared to 20-30k pre-
	poor results, and do we plan to exit our 50% stake in the JV		pandemic levels), (b) additional OPEX incurred, e.g.
	in line with our strategy to monetise low-yielding assets?		cleaning, (c) giving of financial rebates/incentives to
			tenants to aid them through these difficult times
	(Encik Ong Leong Huat)		(~RM4.2m).
		(ii)	Notwithstanding, Melawati Mall remains a strategic asset
			in the wider Sime Property Melawati/KL East township;
			placemaking crucial as part of our strategy.
		(iii)	The Group will continue to review its performance and
			way forward for the mall.
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NO.	QUESTION	RESPONSE
3.4	The Group subscribed for additional shares in JVs (page 240
	of Annual Report), presumably in Battersea JV.
	(i) What are the reasons for the huge amount of RM660.901	(i) In line with the funding programme, amounts invested
	million invested in FY2021 compared to only RM45.865	are for the funding of development costs during the year
	million in FY2020?	mainly for Phase 2 and Phase 3 to ensure the successful
		completion of these phases.
	(ii) How much dividends were received from the Battersea	(ii) None to date.
	JV between FY2019-2021?
	(Encik Lew Tuck Wai)
4.	Build condos with less facilities to reduce the selling price or	Thank you for your valuable suggestion. Management will
	build landed properties. (Cik Chea Ah Chun)	consider this suggestion. It should be noted that all our
		products undergo rigorous research and planning with respect
		to the targeted customer segment.
5.	Why not diversity to infrastructure to build roads and bridges	Thank you for your suggestion; however, the Group's focus
	to solve traffic jams? (Encik Lim San Kim)	and core expertise lies with property development for
		residential, commercial, and industrial segments and not
		infrastructure.
6.	Build another access to Singapore to solve nightmare traffic	The Group is focused on property development and not
	jams then can start to collect tolls. (Encik Lim San Kim)	infrastructure.
7.	Times are bad. No need presentation to save cost. (Encik Lim	Thank you for your comment. We appreciate all views and
	San Kim)	feedback from our shareholders. Please note that we take our
		annual briefings to our shareholders as a key corporate event.
		Hence some costs are expected to be incurred, nevertheless
		budgeted for.
8.	Notice that Sime Property has utilised Facebook live to	Based on a recent campaign utilising Facebook Live as a tool,
	showcase its properties. How much booking has this	it was noted that bookings generated via this tool comprised
	generated? (Encik Teo Cher Ming)	60% of total bookings.

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NO.	QUESTION		RESPONSE
9.	The cost of conducting the AGM
9.1	I understand there is an allocation budgeted for AGM,	Thank you for your comment, we appreciate all views and
	Extraordinary General Meetings ("EGM") expenses, and it	feedback from our shareholders. Please note that we take our
	includes door gifts. Doesn't the company also save a fair bit	annual briefings to our shareholders as a key corporate event,
	by holding the AGM virtually (compared to physical	hence some costs are expected to be incurred, nevertheless
	meetings)? (Encik Chong Yaw Thong @ Chong Yoke Lin)	budgeted for. However, there will be no distribution of door
		gifts or food vouchers to shareholders. The Group is
		committed towards maximising shareholders' returns via
		payment of dividends, while taking into consideration funding
		requirements for growth and transformation plans.
9.2	How can a virtual meeting cost more than a physical meeting?	Thank you. Kindly note that the cost of virtual meetings is
	This meeting is very expensive. (Encik Lim San Kim)	lower comparatively due to costs incurred for physical event
		space rental, refreshments, and additional requirements for
		in-person scrutineering and registration.
10.	Sime Property is near at an all-time low and how are u	(i)	The company is cognisant of the discount to its share
	attracting investors to buy your shares? (Encik Ho Wing Seng)		price which in turn may be related to the low liquidity of
			the shares. It should be noted that in 2021, Sime Property
			generated a TSR of ~2% which is consistent with that of
			FBM KLCI at also 2%.
		(ii)	Management is committed to an improved financial
			performance from 2022 onwards, with the gradual
			recovery of the wider economy and property market,
			buoyed by Sime Property's SHIFT25 strategy & plans to
			grow and diversify its income streams.
		(iii)	Through increased Investor Relations efforts,
			Management will also work on improving trading liquidity
			of Sime Property shares, which may also have impact on
			share price performance.
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