Century Properties Group Inc. · PSE:CPG
Century Properties — Q3 2013 Earnings Presentation
54 slides from Century Properties's earnings presentation, Nov 15, 2013
Slide 1: Analysts Presentation: Q3 2013 Results
CENTURY PROPERTIES GROUP, INC. Analysts Presentation: Q3 2013 Results 15 November 2013
Slide 2: Important Notice and Disclaimer
IMPORTANT NOTICE AND DISCLAIMER These materials have been prepared by Century Properties Group Inc. (together with its subsidiaries, the "Company” or “Century”), and have not been independently verified. No representation or warranty, expressed or implied, is made and no reliance should be placed on
Slide 3: Contents
CONTENTS 1 WHO WE ARE 3 2 WHAT WE DO 11 3 WHERE WE ARE NOW 15 FINANCIAL PERFORMANCE AND 4 20 CAPITAL MANAGEMENT 5 WHERE WE ARE GOING 26 ANNEX 1: CPG OVERVIEW AND KEY 6 31 INVESTMENT HIGHLIGHTS ANNEX 2: CONSTRUCTION AND 7 38 COMPLETION UPDATES 8 Q&A 53
Slide 4: Who We Are
1 WHO WE ARE
Slide 5: CPG's Target Markets
CPG’s TARGET MARKETS Colliers‟ Price Points CPG‟s Price Points Economic Below P2.0M -NA- Affordable P2.0M to P2.99M P2.0M to P3.49M Middle Income P3.0M to P6.9M P3.5M to P6.9M Luxury P7.0M and above P7.0M and above 4
Slide 6: CPG's Target Market
CPG’s TARGET MARKET DEMOGRAPHICS BY MARKET SOURCE OF SALES BY MARKET (As of Sep 2013) (YTD Sep 2013) Services / Clerical 35% Philippines 28% Retired 1% Management / Owner / President 33% International 72% Professional 31% (1) Management includes vice presidents, managers, and owners (2) Professional
Slide 7: Real Estate Market Overview
REAL ESTATE MARKET OVERVIEW Philippine home-ownership is lagging behind regional peers. Comparative Home Ownership Rates % of population living in owned homes Philippines Thailand Indonesia 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% Source: Government statistics 6
Slide 8: Real Estate Market Overview
REAL ESTATE MARKET OVERVIEW Fixed supply of gated communities have driven up pricing, and requires buyers to seek alternative forms of housing. 45,157 Village Houses By Location (Metro Manila) Quezon City San Juan / Pasig 9% Mandaluyong 4% 3% Alabang 14% Makati / Taguig 11% Parañague / Las Piñas / P
Slide 9: Real Estate Market Overview
REAL ESTATE MARKET OVERVIEW ~10% of Philippines population are OFWs who earns up to 3.2x Metro Manila salaries. Deployment continues, and OFWs choose Metro Manila as their preferred location for housing. Domestic housing more affordable for Steadily increasing deployment OFWs with higher incomes 201
Slide 10: Real Estate Market Overview
REAL ESTATE MARKET OVERVIEW Despite increased supply (206K since 2009 units with average of 51.5K units), take up has increased as well (170K units since 2009 with average of 42.5K units) In „000 (K) 70.0 58.7 58.7 60.0 52.9 52.6 49.1 50.0 39.9 40.0 35.6 28.6 30.0 20.0 10.0 2009 2010 2011 2012 Launc
Slide 11: Real Estate Market Overview
REAL ESTATE MARKET OVERVIEW Market has not “loosened” since 2009. In fact, in Middle Income and Luxury markets have “tightened” as Remaining Inventory Life* has decreased as of H1 2013. Remaining Inventory Life (in # of Years) 1.6 1.4 1.4 1.4 1.4 1.3 1.3 1.3 1.3 1.2 1.2 1.2 1.2 1.2 1.1 1.1 1.1 1.1 1
Slide 12: What We Do
2 WHAT WE DO
Slide 13: Pre-Sales
PRE-SALES Industry Leading International Platform and Balanced Product Mix Q3 2013 By Product: Php6.0B Total Q3 2012 By Product: Php5.6B Total Luxury 16.2% Luxury 21.6% Middle Income 20.0% Affordable Affordable 55.9% Middle 63.8% Income 22.4% YTD Sep. 2013 By Product: Php18.1 B Total YTD Sep. 2012 B
Slide 14: Expanding CPG Footprint
EXPANDING CPG FOOTPRINT San Fernando, Pampanga Novaliches, Quezon City Commonwealth, Quezon City Acqua, Mandaluyoung City Century City, Makati City Fort Bonifacio, Global City Azure, Paranaque City Canyon Ranch, Cavite Batulao, Batangas 13
Slide 15: Premium Market Leader Through Design and Branding
PREMIUM MARKET LEADER THROUGH DESIGN AND BRANDING + Paris Hilton 14
Slide 16: Where We Are Now
3 WHERE WE ARE NOW
Slide 17: Performance Results Overview
PERFORMANCE RESULTS OVERVIEW Q3 2013 Financial Results Change from Change from PHP (Million) Q3 2013 Q3 2012 Q2 2013 Prev. Year Prev. Quarter Total Revenues 2,792 2,286 22.1% 2,694 3.6% Net Income 530 467 13.4% 555 -4.6% Gross Profit Margin from Real Estate Development (1) 45.0% 43.9% 47.3% Net Inco
Slide 18: Performance Results Overview
PERFORMANCE RESULTS OVERVIEW YTD September 2013 Financial Results Change from PHP (Million) YTD SEP 2013 YTD SEP 2012 Prev. Year Total Revenues 8,083 7,223 11.9% Net Income 1,586 1,412 12.3% Gross Profit Margin from Real Estate Development (1) 3,365 2,927 Net Income Margin 19.6% 19.5% ROE 21.7% 30.9
Slide 19: Prudent Product Launches Leading to Healthy Growth Prospects
PRUDENT PRODUCT LAUNCHES LEADING TO HEALTHY GROWTH PROSPECTS Pre-Sales as Percent of New Launches 200% 180% 174% 160% 140% 127% 120% 110% 100% 80% 60% 40% 20% 0% 2011 2012 YTD Sep 2013 Ensuring visibility on earnings with P29.6 B of un-booked revenue, while at the same time launching projects in a s
Slide 20: High Collectibility Across All Segments
HIGH COLLECTIBILITY ACROSS ALL SEGMENTS Attracting credit worthy buyers has been CPG‟s thrust CPG requires significant equity commitment prior to turnover Developer: Less bridge financing needed, with higher chances of collectability at turnover evidenced by high percent of cash payments, and no i
Slide 21: Financial Performance and Capital Management
4 FINANCIAL PERFORMANCE AND CAPITAL MANAGEMENT
Slide 22: Record Earnings
RECORD EARNINGS Total revenues (Php Million) 3,000 2,792 2,694 CAGR: 10% 2,598 2,478 2,458 2,388 2,500 2,286 2,000 1,429 1,500 1,123 1,153 998 1,000 500 0 Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013 Q3 2013 Profit After Tax (Php Million) 600 555 530 CAGR: 17% 491
Slide 23: Record Earnings
RECORD EARNINGS Total revenues (Php Million) Gross profit from real estate sales (1) (Php Million) 12,000 Margin (%) 37 42 45 43 46 9,611 5,000 10,000 8,083 3,962 7,223 4,000 8,000 3,365 2,927 6,000 3,000 4,702 4,000 3,072 2,000 1,751 994 2,000 1,000 0 2010 2011 2012 YTD Sep YTD Sep 0 2012 2013 2010
Slide 24: Healthy Balance Sheet
HEALTHY BALANCE SHEET Amount in Audited Audited Audited Unaudited Php Million 31-Dec-10 31-Dec-11 31-Dec-12 30-Sep-13 Cash and Cash Equivalents 283 367 902 1,788 Total Assets 7,555 10,029 18,579 25,725 Total Borrowings 1,226 883 3,661 5,451 Net Debt 943 516 2,759 3,663 Stockholder‟s Equity 2,950 4,3
Slide 25: Broad-Based Support from CPG's Creditors
BROAD-BASED SUPPORT FROM CPG’S CREDITORS All project level loans amortizing co-terminus with completion Approved Credit Facilities as of Nov. 2013 (Php Million) Number of Banks 3 3 11 11 12,000 10,100 10,000 8,000 6,571 6,000 4,000 2,395 1,695 2,000 0 2010 2011 2012 Sep 2013 Cost of Debt as of Nov.
Slide 26: Growing Revenues from Property Management
GROWING REVENUES FROM PROPERTY MANAGEMENT Total Revenues from Property Management (Php Million) 250 222 192 198 200 172 157 150 100 50 0 2010 2011 2012 YTD Sep YTD Sep 2012 2013 Largest Independent Property Manager with 46 Buildings Notable Projects Under Management, with 80% Totaling 2.4M sqm under
Slide 27: Where We Are Going
5 WHERE WE ARE GOING
Slide 28: Manila Bay Resorts
MANILA BAY RESORTS Key Terms of Investment Agreement with Okada Preferred Share Investment • CPG will invest in 432,000,000 voting preferred shares representing 36% of Eagle I Landholdings • Eagle I is the registered owner of 30.5 has. and has the right to use an additional 10 has. located within th
Slide 29: Manila Bay Resorts
MANILA BAY RESORTS Key Terms of Investment Agreement with Okada 5 Hectare Co-Development • This will include luxury residential and retail properties that will total over 300,000 sqm of GFA • Only freehold within PAGCOR Entertainment City 28
Slide 30: Century Spire Building Perspective and Site Development Plan
CENTURY SPIRE BUILDING PERSPECTIVE AND SITE DEVELOPMENT PLAN 29
Slide 31: Century Spire Project Details
CENTURY SPIRE PROJECT DETAILS Project Century Spire Product Offering Mixed-used Luxury Residential and Office Interior Design (common area) Armani/Casa Foreign Architect Studio Daniel Liebeskind Local Architect Gabriel Formoso & Partners Planned GFA 69,571 sqm (excluding parking) Of which: 23,202 sq
Slide 32: Annex 1: Overview of the Company and Key Investment Highlights
7 ANNEX 1: OVERVIEW OF THE COMPANY AND KEY INVESTMENT HIGHLIGHTS
Slide 33: Corporate Structure
CORPORATE STRUCTURE (1) Century Properties, Inc. Public (“CPI”) 33.01% 66.99% Company listed on Philippine (“CPGI”) Stock Exchange 100% 100% 100% 100% Century City Development Century Communities Century Limitless Century Properties Subsidiaries Corporation Corporation Corporation Management (“CCDC”
Slide 34: Key Investment Highlights
KEY INVESTMENT HIGHLIGHTS • Attractive • Strong and valuation experienced management team • Diversification of business plan • Premium pricing (product / and higher market / funding collectibility mix) 33
Slide 35: Strong and Experienced Management Team with Long-Term Commitment
STRONG AND EXPERIENCED MANAGEMENT TEAM WITH LONG-TERM COMMITMENT • Highly experienced management team with strong commitment while expanding management team • Proven track record of developing pioneering projects in the industry and highest product quality CEO / CHAIRMAN Jose E. B. Antonio DIRECTORS
Slide 36: Diversification of Business Plan
DIVERSIFICATION OF BUSINESS PLAN Near- to mid-term expansion of recurring income portfolio by venturing into new products and increasing market [reach] and presence in new locations Beginnings Today 1st Stage Growth 2nd Stage Growth Time Period 1986 to 2010 2011* to 2018 (25 years) (8 years) # of Pr
Slide 37: Premium Pricing and Higher Collectibility
PREMIUM PRICING AND HIGHER COLLECTIBILITY Attracting credit worthy buyers has been CPG‟s thrust CPG requires significant equity commitment prior to turnover Developer: Less bridge financing needed, with higher chances of collectability at turnover evidenced by high percent of cash payments, and no
Slide 38: Attractive Valuation
ATTRACTIVE VALUATION CPG‟s share price is the 2nd biggest gainer in property sector YTD, but valuation in terms of forward P/E is still the lowest at 7.3x YTD Share Price Performance (% Change from 2 Jan. 2013 to 14 Nov. 2013) 30.0% 25.3% 25.0% 20.0% 15.0% 10.0% 5.0% 2.8% 0.0% Average Peers* CPG Com
Slide 39: Annex 2: Construction and Completion Updates
8 ANNEX 2: CONSTRUCTION AND COMPLETION UPDATES
Slide 40: Century City Mall
CENTURY CITY MALL Century City Mall construction on schedule for completion The mall‟s exterior is completed and is being installed with lighting fixtures. Century City Mall‟s rear perspective taken from Centuria Medical Makati 39
Slide 41: Century City Mall
CENTURY CITY MALL Common areas inside the mall have completed finishing works. The building‟s escalators, such as this one along the Kalayaan Avenue main entrance, are . fully installed 40
Slide 42: Centuria Medical Makati
CENTURIA MEDICAL MAKATI Centuria Medical Makati completes structural phase and continues interior activities towards the end of the year The roofdeck level of Centuria on the 28th level Centuria Medical Makati reached structural completion Century Properties and Hi Precision Diagnostics Officials at
Slide 43: Milano Residences
MILANO RESIDENCES The Milano Residences commences formworks on the 31st floor The Milano Residences rises to 31 floors, next to Knightsbridge Residences on the right. The view from Gramercy reveals a very busy Milano Residences. 42
Slide 44: Knightsbridge Residences
KNIGHTSBRIDGE RESIDENCES The Knightsbridge lobby takes shape as it continues fitting-out activities in November. The Knightsbridge Residences prepares for Waterproofing works for the Knightsbridge swimming pool are in-progress. turnover to residents next month 43
Slide 45: Acqua Private Residences
ACQUA PRIVATE RESIDENCES Interior works for Niagara progress, structural works for towers 2 to 4 continue Structural frame of Niagara‟s crown Niagara (left): finishing, Sutherland (right): 26th floor 44
Slide 46: Acqua Private Residences
ACQUA PRIVATE RESIDENCES Niagara: Installation of balcony railings and windows Livingstone: structural works for parking levels Dettifoss: column bar and shearwall instalaltion Sutherland: northwest elevation 45
Slide 47: The Residences at Commonwealth
THE RESIDENCES AT COMMONWEALTH Commonwealth by Century‟s first tower reaches structural completion while second and third towers undergo foundation works The Osmeña West Tower on the right completed its structural phase and moved on to interior roughing-in activities. The Quezon North tower on the l
Slide 48: The Residences at Commonwealth
THE RESIDENCES AT COMMONWEALTH Quezon North‟s structural activities seen from within the Commonwealth by Century property Substructure works and concrete pouring for column footings at the site of the third tower, Osmeña East 47
Slide 49: Azure Urban Resort Residences
AZURE URBAN RESORT RESIDENCES Paris Beach club, man-made beach, amenities to open soon at Azure Paris Beach Club‟s entrance is adorned with plants growing from its wall Paris Beach Club‟s exterior is almost complete with roofing works underway 48
Slide 50: Azure Urban Resort Residences
AZURE URBAN RESORT RESIDENCES Paris Beach Club‟s Candy Bar Paris Beach Club‟s 3rd and topmost floor for restaurant and social function area Paris Beach Club‟s Fitness Center 49
Slide 51: Azure Urban Resort Residences
AZURE URBAN RESORT RESIDENCES Tiling works have finished at the Azure beach. Beach sand laying is in-progress. The water from the Azure lap pool will cascade to the 3,500 meter man-made beach. 50
Slide 52: Azure Urban Resort Residences
AZURE URBAN RESORT RESIDENCES The Rio & Santorini towers seen from the Azure Beach Azure‟s 3rd tower, St. Tropez in its finishing stages 51
Slide 53: Azure Urban Resort Residences
AZURE URBAN RESORT RESIDENCES Positano (right) and Miami (left) are each on the 14th level of structural works Site clearing works in full swing for Azure‟s 8th tower, Maldives Boracay Tower undergoing formworks for its 4th basement level 52
Slide 54: Q&A
10 Q&A
Century Properties Group — Q3 2013 Earnings Presentation on 6ix