Century Properties Group Inc. · PSE:CPG
Century Properties — Q1 2014 Earnings Presentation
39 slides from Century Properties's earnings presentation, May 27, 2014
Slide 1: Analysts Presentation: Q1 2014 Results
CENTURY PROPERTIES GROUP, INC. Analysts Presentation: Q1 2014 Results May 27, 2014
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 INTRODUCTION 3 2 PRE-SALES AND COLLECTION 7 FINANCIAL PERFORMANCE AND 3 15 CAPITAL MANAGEMENT 4 “PROOF OF CONCEPT” 21 5 FUTURE PROJECTS 31
Slide 4: Introduction
INTRODUCTION 1
Slide 5: Where We Are Now: Earnings Momentum and Quality
WHERE WE ARE NOW Earnings Momentum Q1 2014 Revenue of P2.85 B, representing 9.8% growth from P2.60 B in Q1 2013 Q1 2014 Gross Profit from Real Estate Development of P1.15 B, representing 9.3% growth from P1.05 B in Q1 2013 Q1 2014 EBITDA of P816 M, representing 14.1% growth from P715 M in Q1 2
Slide 6: Where We Are Now: Earnings Sustainability
WHERE WE ARE NOW Earnings Sustainability Pre-Sales • Q1 2014 Pre-Sales of P5.3 B, representing 9.2% decline from P5.8 B in Q1 2013 • Total un-booked revenues amounting to P33.34 B as of March 2014 Liquidity • Total debt capacity increased to P10.6 B as of April 2014 • Cash flow from operations i
Slide 7: Results Overview
RESULTS OVERVIEW PHP (Million) Q1 2013 Q1 2014 Total Revenues 2,598 2,853 Gross Profit from Real Estate Development1 1,053 1,151 EBITDA1 715 816 Net Income 501 513 Gross Profit Margin from Real Estate Development1 44.2% 43.4% Net Income Margin 19.3% 18.0% ROE 20.4% 17.6% Net Debt / Equity 0.4x 0.5x
Slide 8: Pre-Sales and Collection
PRE-SALES AND COLLECTION 2
Slide 9: Real Estate Market Overview
REAL ESTATE MARKET OVERVIEW Despite increased supply (170K units since 2011 with average of 56.7K units), take up has increased as well (142K since 2011 units with average of 47.4K units) In ‘000 (K) 70,000 59,025 59,379 60,000 51,525 51,735 50,000 48,199 42,590 40,000 30,000 20,000 10,000 0 2011 20
Slide 10: Real Estate Market Overview: Remaining Inventory Life
REAL ESTATE MARKET OVERVIEW Remaining Inventory Life (in # of Years) 3.0 2.6 2.5 2.0 1.9 1.8 1.6 1.5 1.5 1.5 1.4 1.4 1.4 1.3 1.3 1.3 1.3 1.2 1.0 1.0 1.0 0.8 0.6 0.5 0.0 2011 2012 2013 Economic Affordable Middle Income Upscale Luxury All Segments Source: Colliers International as of FY 2013 9
Slide 11: Project Portfolio: 90% Sold as of March 2014
PROJECT PORTFOLIO: 90% SOLD AS OF MARCH 2014 Launching projects in a staggered manner to prevent build-up of inventory Luxury: 3 Buildings, 81% Sold Middle Income: 9 Projects, 96% Sold Affordable: 17 Buildings, 88% Sold 10
Slide 12: Ability to Increase Selling Price Due to Premium Products
ABILITY TO INCREASE SELLING PRICE DUE TO PREMIUM PRODUCTS Luxury (Ave. PSM, Sold) Middle Income (Ave. PSM, Sold) 300,000 200,000 260,000 241,373 180,000 171,090 220,000 194,594 160,000 156,368 180,000 140,000 140,000 100,000 120,000 Q1 2013 Q1 2014 Q1 2013 Q1 2014 Affordable (Ave. PSM, Sold) 140,000
Slide 13: CPG's Target Markets
CPG’s TARGET MARKETS Premium pricing across all market segments Colliers’ Price Points CPG’s Price Points Economic Below P1.25M None Affordable P1.25M to P3.0M P2.3M to P3.6M Middle Income P3.0M to P5.0M P3.7M to P7.2M Upscale P5.0M to P7.0M Luxury P7.0M and above P7.3M and above 12
Slide 14: Pre-Sales: Balanced Product Mix
PRE-SALES Balanced Product Mix 9% Q1 2013 By Product: Php5.8 B Total Pre-sales Decrease Q1 2014 By Product: Php5.2 B Total Pre-sales Luxury Luxury 19% 10% Middle Income 22% Middle Income Affordable Affordable 30% 69% 51% Visibility on earnings with P33.34 B of un-booked revenue Note: Luxury, Middle
Slide 15: Pre-Sales: International Sales Platform
PRE-SALES Industry Leading International Sales Platform Q1 2014 By Geographic Location Q1 2014 By Country Middle East Others 16.2% 5.9% Philippines 27% North America 12.5% Asia 29.5% Europe 8.5% International 73% Philippines 27.4% 14
Slide 16: Financial Performance and Capital Management
FINANCIAL PERFORMANCE AND CAPITAL MANAGEMENT 3
Slide 17: Sustained Earnings Growth Momentum
SUSTAINED EARNINGS GROWTH MOMENTUM Key Income Statement Details Total revenues (Php Million) Gross profit from real estate development1 (Php Million) 14,000 Margin (%) 37 42 45 44 43 6,000 12,000 10,809 9,611 5,000 10,000 4,192 3,962 4,000 8,000 3,000 6,000 4,702 2,000 1,751 4,000 2,853 2,598 1,053
Slide 18: Healthy Balance Sheet
HEALTHY BALANCE SHEET Amount in Php Million 2011 2012 2013 Q1 2014 Cash and Cash Equivalents 367 902 1,439 939 Total Assets 10,033 18,556 26,166 26,732 Total Borrowings 883 3,661 6,039 6,408 Net Debt 516 2,759 4,600 5,469 Stockholder’s Equity 4,322 8,241 11,435 11,948 Debt-to-Equity Ratio Net Debt-t
Slide 19: Improving Operating Cash Flow
IMPROVING OPERATING CASH FLOW Amount in Php Million 2010 2011 2012 2013 Q1 2014 Cash Flow from Operations (922) (252) (3,414) (1,586) (391) Cash Flow from Investing (109) 325 (863) (1,548) (275) Cash Flow from Financing 1,177 11 4,812 3,671 166 Change in Cash 147 84 535 537 500 Beginning Cash 136 28
Slide 20: More Credit Facilities, Lower Cost of Debt
MORE CREDIT FACILITIES, LOWER COST OF DEBT Approved Credit Facilities (Php Million) Cost of Debt Number Weighted Average Interest Rate1 Of Banks 3 3 11 11 12 10.0% 9.5% 12,000 9.5% 10,645 8.9% 9.0% 10,000 9,475 8.5% 8,000 8.0% 6,571 7.5% 7.5% 6,000 7.0% 4,000 6.5% 6.0% 6.0% 2,395 6.0% 2,000 1,695 5.
Slide 21: Increasing Revenues from Property Management
INCREASING REVENUES FROM PROPERTY MANAGEMENT Total Revenues from Property Management (Php Million) 350 300 254 250 222 192 200 150 100 64 72 50 0 2011 2012 2013 Q1 2013 Q1 2014 Largest Independent Property Manager with 51 Notable Projects Under Management, with 80% Buildings Totaling 2.6M sqm under
Slide 22: Proof of Concept
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Slide 23: Azure Urban Resort Residences
1 AZURE URBAN RESORT RESIDENCES 22
Slide 24: Azure Urban Resort Residences
1 AZURE URBAN RESORT RESIDENCES 23
Slide 25: Acqua Private Residences
2 ACQUA PRIVATE RESIDENCES 24
Slide 26: The Knightsbridge Residences
3 THE KNIGHTSBRIDGE RESIDENCES 25
Slide 27: The Knightsbridge Residences
3 THE KNIGHTSBRIDGE RESIDENCES 26
Slide 28: Century City Mall
A CENTURY PROPERTIES (@) CENTURY CITY MALL 27
Slide 29: Century City Mall
(@) CENTURY CITY MALL CENTURY PROPERTIES
Slide 30: Centuria Medical Makati
3 CENTURIA MEDICAL MAKATI Centuria Medical Makati continues interior works in preparation for turnover this year 29
Slide 31: The Residences at Commonwealth
4 THE RESIDENCES AT COMMONWEALTH 30
Slide 32: Future Projects
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Slide 33: Pipeline Projects
PIPELINE PROJECTS Expected 2012 to 2016 2017 to 2019 Turnover Projects1 Projects1 20 buildings (all launched) 11 buildings (9 launched) Residential 12,164 units that is 94% sold 5,928 units that is 55%sold2 projects Commercial 2 buildings (both launched) 4 buildings (un-launched) projects 57,853 sq.
Slide 34: New Project Launch – Acqua 6
NEW PROJECT LAUNCH – ACQUA 6 34
Slide 35: New Project Launch – Acqua 6: Features and Amenities
NEW PROJECT LAUNCH – ACQUA 6 Features Amenities • Grand Lobby • Restaurant • Access Cards • Outdoor Landscape • 24 hour security • Swimming Pool (adult/kiddie) • 2 service elevators • Lounge • 2 residential elevators • Gym • 2 hotel elevators • Spa • Centralized AC (Hotel) • Access to PEBBLE (Reside
Slide 36: Land Bank
LAND BANK Location Land Size (HA) Novaliches, Quezon City Pampanga 7.9 Batulao 142.0 Manila City Historical + Cultural Novaliches 50.0 Anitpolo Pasig City Makati CBD Commercial + Retail Suburbs Total 199.9 Commerce San Fernando, Pampanga Naia Airport Global Connectivity Batulao, Batangas 36
Slide 37: San Fernando Pampanga – Azure North
SAN FERNANDO PAMPANGA – AZURE NORTH Preliminary concept masterplan and components 37
Slide 38: New Project: Batulao
NEW PROJECT: BATULAO LAND AREA Phase 1: 23.5 Ha Phase 2: 16.0 Ha Phase 3: 15.4 Ha Phase 4: 27.5 Ha Phase 5: 11.2 Ha Phase 6: 20.4 Ha Phase 7: 31.8 Ha Batulao is located southwest of Metro Manila, after passing the prime landscape destination of Tagaytay City and on the way to the beaches of Nasugbu,
Slide 39: Baw we
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Century Properties Group — Q1 2014 Earnings Presentation on 6ix