Century Properties Group Inc. · PSE:CPG
Century Properties — Shareholder Meeting (August 2020)
60 slides from Century Properties's shareholder meeting presentation, Aug 27, 2020
Slide 1: Creating New Generation Real Estate
CREATING NEW GENER ATION REAL ESTATE
Slide 2: Key Milestones & Developments
KEY MILESTONES & PHP 3B DEVELOPMENTS PREFERRED SHARES Note: Century Properties Management Inc. East Asia Power Resources Corporation
Slide 3: 2019 Net Income P1.48B, Revenues P14.32B
2019 32% 34% P1.48B P14.32B NET INCOME REVENUES
Slide 4: Financial Highlights: FY2019
FINANCIAL HIGHLIGHTS: FY2019 FY 2019 FY 2018 CHANGE % TOTAL REVENUES 14,315 10,702 3,613 34% GROSS PROFIT 5,343 4,542 801 18% Gross Margin 37% 42% -% - Operating Expense 3,236 3,255 -19 -1% EBITDA 2,891 2,080 811 39% EBITDA Margin 20% 19% 1% - Interest & Financing Charges 917 594 323 54% Net Income
Slide 5: Positive Results Driven By
POSITIVE RESULTS DRIVEN BY Project completions: 1,688 condominium units and 866 affordable house and lot units Affordable housing and leasing Higher 2019 net sales of segments continue to grow P2.5B, up 11.3% contributions in NIAT
Slide 6: 3 Core Business Pillars
3 CORE BUSINESS PILLARS IN-CITY VERTICAL AFFORDABLE COMMERCIAL HOUSING LEASING
Slide 7: Segment NIAT Contribution: 2019
SEGMENT NIAT CONTRIBUTION: 2019 55% VERTICAL DEVELOPMENTS We achieved our goal to grow CPG’s new allied real estate businesses and to have a diversified net income mix with more sustainable cash flow and recurring income 19% LEASING 25% HORIZONTAL AFFORDABLE HOUSING 1% PROPERTY MANAGEMENT
Slide 8: Vertical Developments
VERTICAL DEVELOPMENTS Completed 3 projects in 2019: 1,688 units with 119,641 sqm GFA Cumulative as of December 2019: Completed total of 26 residential projects, 14,699 units, 1.18 million sqm GFA
Slide 9: Vertical Developments
VERTICAL DEVELOPMENTS 14,000 units | 25 residential buildings | GFA 1.1M sqm. ACQUAPRIVATE RESIDENCES Sixth and Final Tower Completed: Tower 6 Location: Mandaluyong City Inventory: 3,168 units Sold: 3,132 units (99%) Sales Value: 16,258 Sold Revenues: 15,836 CENTURY CITY 4 Residential Towers Complet
Slide 10: Horizontal Affordable Housing
HORIZONTAL AFFORDABLE HOUSING PHirst Park Homes is a joint venture project between CPG and Mitsubishi Corporation. 2,046 housing units underway 866 Units Completed* 555 homeowners scheduled for punch listing 502 units Turned-over 99.6% Acceptance on first inspection As of December 31, 2019
Slide 11: Horizontal Affordable Housing
HORIZONTAL AFFORDABLE HOUSING PHirst Park Homes is a joint venture project between CPG and Mitsubishi Corporation. PHIRST PARK HOMES: SAN PHIRST PARK HOMES: PANDI PHIRST PARK HOMES: PABLO Location: Pandi, Bulacan CALAMBA Location: San Pablo, Laguna 18 11 hectares of planned 18 hectares Location: Cal
Slide 12: Horizontal Affordable Housing
HORIZONTAL AFFORDABLE HOUSING PHirst Park Homes is a joint venture project between CPG and Mitsubishi Corporation. PHIRST PARK HOMES: TANZA PHIRST PARK HOMES: LIPA Location: Tanza, Cavite Location: Lipa, Batangas 20 26.3 hectare development hectare development Launched in May 2017 Launched in May 20
Slide 13: Horizontal Affordable Housing
HORIZONTAL AFFORDABLE HOUSING As of end 2019, launched 5 communities in 84 hectares with 7,230 house and lot units
Slide 14: PHirst Park Homes 2019 Sales P7.1B
PHIRST PARK HOMES 2019 SALES P7.1B 67% OF INVENTORY IN TANZA, LIPA, SAN PABLO, CALAMBA AND PANDI
Slide 15: Mitsubishi Corporation and Century Properties
ae Qa Mitsubishi CENTURY PROPERTIES Corporation BUILDING PASSION
Slide 16: Investment Properties: Continuous Rollout of Leasing Assets
INVESTMENT PROPERTIES CONTINUOUS ROLLOUT OF LEASING ASSETS 104% CAGR on Cumulative Gross Leasable Area (sqm) between 2017 and 2019 Leasing Assets 162,533 Total GLA (sqm) CENTURY CITY MALL* ASIAN CENTURY CENTER Location: Makati Location: BGC, Taguig Type: Retail Type: Office GLA: 26,919 sqm GLA: 31,9
Slide 17: Financial Condition: 2019
FINANCIAL CONDITION: 2019 BALANCE SHEET In ₱ Million FY 2019 FY 2018 Change % Total Assets 53,442 49,367 4,075 8% Total Liabilities 33,826 31,903 1,923 6% Equity 19,616 17,463 2,152 12% FINANCIAL RATIOS FY 2019 FY2018 Debt to EBITDA 7.3x 10.0x Debt to Equity 1.1x 1.2x Return on Equity 2.9% 2.4% Retu
Slide 18: Release of Cash Dividends
RELEASE OF CASH DIVIDENDS P147. 8M VALUE P0.013 PER SHARE CASH DIVIDENDS TRANCHE 1: SEPTEMBER 18 TRANCHE 2: NOVEMBER 1 8
Slide 19: 2020 & Beyond
2020 & BEYOND
Slide 20: Major Shocks in 2020
MAJOR SHOCKS IN 2020 TAAL VOLCANO ERUPTION IN JANUARY CORONAVIRUS DECLARED A GLOBAL PANDEMIC IN EARLY MARCH RESULTING LOCKDOWNS IN NCR FROM MID-MARCH TO PRESENT
Slide 21: Activated Business Continuity Plans
Activated business continuity plans Crisis team implemented solutions quickly: • Ensured health and safety of personnel and customers • Kept communication lines open • Continued delivering services to clients and all communities
Slide 22: 1H 2020 Results
1H 2020 RESULTS
Slide 23: Built Robust Liquidity Levels
Built robust liquidity levels Maintained a healthy balance sheet Prepared for new business opportunities Continued operations under a flexible setup
Slide 24: Segment NIAT Contribution: 1H 2020
SEGMENT NIAT CONTRIBUTION: H1 55% HORIZONTAL DEVELOPMENTS 2020 19% LEASING CPG’s new allied real estate businesses with higher margins continue to expand Horizontal Affordable Housing and Leasing businesses 25% contributed a total of 41% AFFORDABLE HOUSING 1% PROPERTY MANAGEMENT
Slide 25: 1H 2020 Affordable Housing & Leasing Combined Revenues
1H 2020 AFFORDABLE HOUSING & LEASING COMBINED REVENUES 28% P1.27B OUT OF P4.52B CONSOLIDATED REVENUES VS 1H 2019 15%
Slide 26: 1H 2020 Affordable Housing & Leasing Combined Net Income
1H 2020 AFFORDABLE HOUSING & LEASING COMBINED NET INCOME 42% P225M OUT OF P546M TOTAL NET INCOME VS 1H 2019 29%
Slide 27: 1H 2020 Gross Profit Margin
1H 2020 OPERATING GROSS PROFIT EXPENSES MARGIN DROPPED 40% FROM 38% 21%
Slide 28: 1H 2020 Reservation Sales P6.1B
1H 2020 RESERVATION SALES P6.1B DIGITAL AND CONTACTLESS TRANSACTIONS MARKET’S GROWING APPRECIATION OF HARD ASSETS
Slide 29: Financial Condition: June 2020
FINANCIAL CONDITION: JUNE 2020 BALANCE SHEET In ₱ Million JUN 2020 DEC 2019 Change % Total Assets 53,966 53,442 524 1% Total Liabilities 30,954 33,826 -2,872 -8% Equity 23,012 19,616 3,397 17% FINANCIAL RATIOS JUNE 2020 DEC 2019 Debt to EBITDA 9.5x 7.3x Debt to Equity 0.8x 1.1x Return on Assets 2.0%
Slide 30: CPG Continues to Support Personnel, Communities and Country
CPG continues to support its personnel, communities, and the country in the fight against the pandemic. #CenturyAtYourService
Slide 31: CPG Continues to Support Personnel, Communities and Country
CPG continues to support its personnel, communities, and the country in the fight against the pandemic. #CenturyAtYourService
Slide 32: CPG Continues to Support Personnel, Communities and Country
CPG continues to support its personnel, communities, and the country in the fight against the pandemic. #CenturyAtYourService
Slide 33: CPG Continues to Support Personnel, Communities and Country
CPG continues to support its personnel, communities, and the country in the fight against the pandemic. #CenturyAtYourService
Slide 34: CPG Continues to Support Personnel, Communities and Country
CPG continues to support its personnel, communities, and the country in the fight against the pandemic. #CenturyAtYourService
Slide 35: Partnered with BCDA for COVID-19 Mega Testing Facility
Partnered with the BCDA to convert the Philippine Arena into a COVID-19 Mega Testing Facility #CenturyAtYourService
Slide 36: Partnered with BCDA for COVID-19 Mega Testing Facility
Partnered with the BCDA to convert the Philippine Arena into a COVID-19 Mega Testing Facility #CenturyAtYourService
Slide 37: Partnered with BCDA for COVID-19 Mega Testing Facility
Partnered with the BCDA to convert the Philippine Arena into a COVID-19 Mega Testing Facility #CenturyAtYourService
Slide 38: 34 Years in the Philippine Real Estate Industry
34 YEARS IN THE PHILIPPINE REAL ESTATE INDUSTRY SURPASSED VARIOUS ECONOMIC CYCLES
Slide 39: 3 Core Guiding Principles to Navigate Challenges
WE FORGE AHEAD WITH 3 CORE GUIDING PRINCIPLES TO NAVIGATE THROUGH THE CHALLENGES AND BOUNCE BACK STRONG
Slide 40: Core Guiding Principles: Beyond 2020
CORE GUIDING PRINCIPLES: BEYOND 2020 RESILIENCE AND INNOVATION SUSTAINABILITY GROWTH
Slide 41: Innovation
INNOVATION 1. Fully-Fitted and Fully-Furnished Concept 2. First Transit-oriented Development 3. First series of medical arts buildings 4. First ultra-luxury project designed by Pritzker Prize architect I.M. Pei 5. Created the beach club and country club concepts within residential communities 6. Fir
Slide 42: Innovation
INNOVATION We will study changing customer needs and behaviors Utilize technology to serve our clients better
Slide 43: Innovation
INNOVATION We will study changing customer needs and behaviors Utilize technology to serve our clients better
Slide 44: Innovation
INNOVATION 2020 ANNUAL STOCKHOLDERS’ MEE
Slide 45: Innovation
INNOVATION Accelerated digital programs that started years back Further enhanced marketing, sales, payment facilities, support services
Slide 46: Introducing CORA: Buyer's Portal
INNOVATION INTRODUCING CORA A BUYER’S PORTAL FOR CENTURY PROPERTIES
Slide 47: Resilience and Growth
Ds Bs Bs behchehshe 1 2020 ANNUAL STOCKHOLDERS’ MEETING: AUGUST 27, 2020
Slide 48: Resilience and Growth
RESILIENCE AND GROWTH Increasing liquidity levels • Reducing operational expenses • Reducing capital expenditures by focusing on current project completions and phasing project launches • Maintaining positive operating cash flows
Slide 49: Resilience and Growth
RESILIENCE AND GROWTH Continuing business expansion to diversify revenue sources
Slide 50: Resilience and Growth
RESILIENCE AND GROWTH Continuing business expansion to diversify revenue sources PHirst Park Homes will launch its seventh project in Magalang, Pampanga later this year
Slide 51: Resilience and Growth
RESILIENCE AND GROWTH Continuing business expansion to diversify revenue sources • Added 25,000 sqm GFA to office leasing portfolio • Growing total leasing portfolio to 137,000 sqm • Acquired 40% stake of Mitsubishi Corporation at Century Diamond Tower, Makati
Slide 52: Resilience and Growth: Ensuring Workforce Safety
RESILIENCE AND GROWTH Ensuring workforce safety
Slide 53: Sustainability
SUSTAINABILITY New-generation lifestyles New-generation experiences NEW-GENERATION REAL ESTATE
Slide 54: Sustainability
SUSTAINABILITY SUSTAINABILITY SMART AND GREEN DESIGN PRODUCT DIFFERENTIATION
Slide 55: Sustainability
SUSTAINABILITY CENTURY PROPERTIES 2020 ANNUAL STOCKHOLDERS’ MEETING: AUGUST 27, 2020 ''"**
Slide 56: Sustainability
SUSTAINABILITY Creating sustainable, environmentally conscious and healthy communities; Strengthening disaster resiliency, safety, and emergency preparedness measures; and Supporting the shift towards distributed urbanism or de-centralization.
Slide 57: Sustainability
SUSTAINABILITY Launched projects following green building, disaster resiliency standards Property management teams undergo 80 safety and security trainings yearly Launched projects in 8 key growth locations outside Metro Manila
Slide 58: A New Opportunity for Us to Create Meaningful Change
A NEW OPPORTUNITY FOR US TO CREATE MEANINGFUL CHANGE
Slide 59: Innovation, Resilience and Growth, Sustainability
RESILIENCE AND INNOVATION SUSTAINABILITY GROWTH
Slide 60: Thank You!
THANK YOU!
Century Properties Group — Shareholder Meeting (August 2020) on 6ix