strategies employed – risks and opportunities identification MATERIAL TOPIC RISKS AND OPPORTUNITIES TYPE/NATURE OF/LIKELIHOOD RISK/ IMPACT SEVERITY AND TIMEFRAMES Landbanking Risks With land being an integral aspect of property development, Matrix focuses on refining its strategies towards ensuring sufficient landbank at strategic locaঞons. Landbank replenishment needs to be undertaken prudently towards ensuring not just sufficient land, but also that land is acquired at appropriate prices. This is due to the fact that land costs is a key factor in determining overall project costs as well as the cost of units, development raঞos and more. Going forward, environmental factors such as access to water, ambient temperatures, risk of flooding and other natural disasters may become more prevalent in shaping landbanking strategies C/G FIN OP REP PS RS3 LT Opportunities Opportuniঞes include appreciaঞon of landbank which generates financial values, the ability to dispose of unrequired land for fair gains and to collaborate with landowners based on a joint venture proposal. This offlays land acquisiঞon costs. C/G FIN OP REP PS IL2 LT Matrix has a clear landbank management strategy, which is intended to replenish landbank as land is consumed for development. This includes sourcing for strategic parcels adjacent or close to exisঞng property developments, as well as idenঞfying strategic, plots in highly sought a[er locaঞons. The Group also considers landbank in areas that may see strong future growth potenঞal over the next three to 15 years. Decisions on landbank comes under the purview of the Group’s Project Planning team. Beyond commercial potenঞal, determinaঞon of consideraঞon sum for landbank is based on market pricing and valuaঞon with Matrix applying several financial raঞos to determine esঞmated valuaঞon. The approach also uses several development scenarios based on expected ঞme to develop the would be acquired landbank. Other consideraঞons include expected upkeep and maintenance cost and if exisঞng infrastructure and ameniঞes can be leveraged or would further investments be necessary to ensure commercial viability. The cost and duraঞon to develop any necessary infrastructure are also consideraঞon factors that influence landbank acquisiঞon. Such costs will need to be included in the overall commercial consideraঞon, which also includes regular upkeep and maintenance. These consideraঞons and steps are part of the overall feasibility studies and land assessment process. Where it is deemed strategic, Matrix may also opt to undertake a joint venture approach with landowners. This significantly reduces the upfront costs of land acquisiঞon. 100 MATRIX CONCEPTS HOLDINGS BERHAD INTEGRATED ANNUAL REPORT 2025 05 VALUE CREATION STRATEGIC REVIEW
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