Century Properties Group Inc. · PSE:CPG
Century Properties — Q2 2013 Earnings Presentation
50 slides from Century Properties's earnings presentation, Aug 14, 2013
Slide 1: Analysts Presentation: Q2 2013 Results
CENTURY PROPERTIES GROUP, INC. Analysts Presentation: Q2 2013 Results 14 August 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 INTRODUCTION 3 2 PERFORMANCE OVERVIEW 8 3 PRE-SALES RESULTS 11 FINANCIAL PERFORMANCE 4 16 & CAPITAL MANAGEMENT CONSTRUCTION AND COMPLETION 5 25 UPDATES 6 PIPELINE OF PROJECTS 38 7 FORAY INTO NEW MARKETS 42 8 OTHER ITEMS 47 9 Q&A 49
Slide 4: Introduction
1 INTRODUCTION
Slide 5: Growth and a Leap Forward
GROWTH AND A LEAP FORWARD 2nd Stage of Growth from 2013 to 2015: Financial The Aspirations Essentials • P30 billion of 1. Leadership pre-sales by 2. Innovation 2015 3. Sustainability • P3B of net 4. Exposure income by 2015 1st Stage of Transformation from 2010 to 2012: With a CAGR a pre-sales, reven
Slide 6: Where We Are Now
WHERE WE ARE NOW Earnings Momentum Q2 2013 Revenue of P2.69 B, representing 9.6% growth from Q2 2012 and 3.7% from Q1 2013 Q2 2013 Net Income of P555 M, representing 13.1% from Q2 2012 and 11.0% growth Q1 2013 H1 2013 Revenue of P5.29 B, representing 7.2% growth from H1 2012 and 13.2% from H2
Slide 7: Where We Are Now
WHERE WE ARE NOW Earnings Sustainability Pre-Sales • Q2 2013 Pre-Sales of P6.3 B, representing 16.0% growth from Q2 2012 and 8.6% from Q1 2013 • H1 2013 Pre-Sales of P12.1 B, representing 13.3% growth from H1 2012 and 13.1% from H2 2012 • On track to achieving full year pre-sales target of P24 B •
Slide 8: Where We Are Now
WHERE WE ARE NOW Earnings Sustainability Recurring Income • Initial foray into the recurring income space with the completion of 17,000 net leasable sqm Century City mall in Q4 2013 that is 89% pre-leased as of August • Ground breaking for office building with GFA of 29,560 sqm in Fort Bonifacio t
Slide 9: Performance Overview
2 PERFORMANCE OVERVIEW
Slide 10: Performance Overview: Q2 2013 Financial Results
PERFORMANCE OVERVIEW Q2 2013 Financial Results Inc. from Inc. from PHP (Million) Q2 2013 Q2 2012 Q1 2013 Prev. Prev. Year Quarter Total Revenues 2,694 2,458 9.6% 2,598 3.7% Net Income 555 491 13.1% 501 11.0% Gross Profit Margin from Real Estate Development (1) 47.3% 43.6% 44.2% Net Income Margin 20.
Slide 11: Results Overview: H1 2013 Financial Results
RESULTS OVERVIEW H1 2013 Financial Results Inc. from Inc. from PHP (Million) H1 2013 H1 2012 H2 2012 Prev. Prev. Year Semester Total Revenues 5,291 4,936 7.2% 4,675 13.2% Net Income 1,056 944 11.8% 900 17.3% Gross Profit Margin from Real Estate Development (1) 45.8% 42.7% 46.5% Net Income Margin 20.
Slide 12: Pre-Sales Results
3 PRE-SALES RESULTS
Slide 13: Prudent Product Launches Leading to Healthy Growth Prospects
PRUDENT PRODUCT LAUNCHES LEADING TO HEALTHY GROWTH PROSPECTS Pre-Sales as Percent of New Launches Ensuring visibility on earnings with P30.3 B of un-booked revenue, while at the same time launching projects in a staggered manner to prevent build-up of inventory 12
Slide 14: Q1 & Q2 2013 Pre-Sales
Q1 & Q2 2013 PRE-SALES Industry Leading International Platform and Balanced Product Mix Q1 2013 By Location: Php5.8B Total Q1 2013 By Product: Php5.8B Total Luxury, 19% Philippines, 31% Affordable, 51% Middle International, Income, 69% 30% Q2 2013 By Location: Php6.3 B Total Q2 2013 By Product: Php6
Slide 15: 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) Livingstone Trump by Missoni Iguazu by Stark Affordable (Ave. PSM, Sold) Note: Reflects pre-sold units pricing on above mentioned time periods 14
Slide 16: Collection Snapshot
COLLECTION SNAPSHOT Middle Income Average Buyer s’ Equity vs TCP Total Receivable Collected 6 Months After Turnover Average Buyers' Equity TCP 40% 60% Payment of Turnover Balances (1) Note: Reflects projects in each market segment that have turned over 12/2012 to 6/2013, Past collection efficiency i
Slide 17: Financial Performance and Capital Management
4 FINANCIAL PERFORMANCE AND CAPITAL MANAGEMENT
Slide 18: Record Earnings
RECORD EARNINGS Total revenues (Php Million) Profit After Tax (Php Million) 17
Slide 19: Record Earnings
RECORD EARNINGS Total revenues (Php Million) Gross profit from real estate development (Php Million) Margin (%) 37 42 45 43 46 EBITDA (Php Million) Profit After Tax (Php Million) Margin (%) 11 29 27 27 30 Margin (%) 6 18 19 19 20 18
Slide 20: Healthy Balance Sheet
HEALTHY BALANCE SHEET Amount in Audited Audited Audited Unaudited Php Million 31-Dec-10 31-Dec-11 31-Dec-12 30-June-13 Cash and Cash 283 367 902 1,794 Equivalents Total Assets 7,555 10,029 18,579 22,622 Total Borrowings 1,226 883 3,661 3,883 Net Debt 943 516 2,759 2,089 Stockholder’s 2,950 4,332 8,2
Slide 21: More Credit Facilities, Lower Cost of Debt
MORE CREDIT FACILITIES, LOWER COST OF DEBT Approved Credit Facilities (Php Million) Number of 3 11 12 3 Banks Cost of Debt Subsequent event: 1st drawdown syndicated term loan of P1.6 B 20
Slide 22: Cash Flow from Operations
CASH FLOW FROM OPERATIONS Cash from Operations, Before Interest and Tax (Php Million) Cash from Operations, Net of Interest and Tax (Php Million) 21
Slide 23: Capex Program
CAPEX PROGRAM Total Capital Expenditures (Php Million) 22
Slide 24: Near Term Completions
NEAR TERM COMPLETIONS 4 buildings with 3,217 units, 201,105 sqm GFA / 105,541 sqm of net saleable area, plus a retail mall and an urban beach club to be delivered in the coming months Construction works are on schedule for all projects Paris Hilton Rio Santorini St. Tropez Beach Knightsbridge Re
Slide 25: Growing Revenues from Property Management
GROWING REVENUES FROM PROPERTY MANAGEMENT Total Revenues from Property Management (Php (Million) Largest Independent Property Manager with 50 Buildings Notable Projects Under Management, with 80% Totaling 2.3M sqm under Management of contracts with 3rd parties Asian Development Bank Makati Medic
Slide 26: Construction and Completion Updates
5 CONSTRUCTION AND COMPLETION UPDATES Note: Unit count as of December 2012
Slide 27: Knightsbridge Residences
KNIGHTSBRIDGE RESIDENCES Key Project Statistics Launch and Completion Dates 2008 / 2013 Current Construction Status (as of June 2013) Finishing Total Units 1,328 Total GFA With Parking (sqm) 91,357 26
Slide 28: Knightsbridge Residences
KNIGHTSBRIDGE RESIDENCES 27
Slide 29: Century City Mall
CENTURY CITY MALL Key Project Stats Launch and Completion Dates 2011 / 2013 Current Construction Status Finishing Total GFA With Parking (sqm) 49,143 Total NFA (sqm) 17,000 Total Floors 6 % Leased (as of August 2013) 89% 28
Slide 30: Century City Mall
CENTURY CITY MALL 29
Slide 31: Centuria Medical Makati
CENTURIA MEDICAL MAKATI Key Project Statistics Launch and Completion Dates 2010 / 2014 Current Construction Status (as of June 2013) 23rd Floor Total Units 553 Total GFA With Parking (sqm) 70,804 30
Slide 32: Acqua Private Residences
ACQUA PRIVATE RESIDENCES Key Project Stats Open for Sale Un-Launched Total # of Buildings 5 1 6 Total Units 2,859 202 3,061 Total GFA (sqm) 189,776 24,004 213,780 31
Slide 33: The Residences at Commonwealth
THE RESIDENCES AT COMMONWEALTH Key Project Stats Open for Sale Un-Launched Total # of Buildings 5 3 8 Total Units 2,500 692 3,192 Total GFA (sqm) 95,794 91,060 186,85 32
Slide 34: The Residences at Commonwealth
THE RESIDENCES AT COMMONWEALTH 33
Slide 35: Azure Urban Resort Residences
AZURE URBAN RESORT RESIDENCES Turning over Rio, Santorini and St. Tropez with GFA of 109,748 sqm and 1,889 units within Q2 to Q4 2013 34
Slide 36: Azure Urban Resort Residences
AZURE URBAN RESORT RESIDENCES 35
Slide 37: Azure Urban Resort Residences
AZURE URBAN RESORT RESIDENCES 36
Slide 38: Azure Urban Resort Residences
AZURE URBAN RESORT RESIDENCES 37
Slide 39: Pipeline of Projects
6 PIPELINE OF PROJECTS
Slide 40: Premium Market Leader Through Design and Branding
PREMIUM MARKET LEADER THROUGH DESIGN AND BRANDING Key Project Stats Lot 3 Lot 5 Total Planned GFA (in sqm, excluding 63,320 68,514 138,333 parking) (1) Office 3 Luxury (For Sale Product Offering Residential and/or For and Office Lease) Office GFA (1) (2) 31,660 15,416 47,076 5 (1) Subject to change
Slide 41: Office Building in Fort Bonifacio
OFFICE BUILDING IN FORT BONIFACIO SHANGRI-LA THE MIND BONIFACIO MUSEUM HIGHSTREET Project Location: 27th Street at 3rd & 4th Avenue Land Size (sqm) 3,268 Total Planned GFA (sqm) 29,560 (excluding parking) CPGI Equity Ownership 49% 40
Slide 42: Office Building in Fort Bonifacio
OFFICE BUILDING IN FORT BONIFACIO Office Building Perspective 41
Slide 43: Foray into New Markets
7 FORAY INTO NEW MARKETS
Slide 44: Pampanga: Central Luzon Growth Corridor
PAMPANGA: CENTRAL LUZON GROWTH CORRIDOR Demographic Highlights Central Luzon boasts of over 10.14M population, closely following CALABARZON (12.61M) and the National Capital Region (11.86M). • Aurora: 201,233 • Bataan: 687,482 • Bulacan: 2,924,433 • Nueva Ecija: 1,955,373 • PAMPANGA: 2,340,355 • T
Slide 45: City of San Fernando – Regional Center
CITY OF SAN FERNANDO – REGIONAL CENTER Demographic Highlights Total population: 221,000 based on 2010 Census; high of 269,365 based on the City’s 2013 Comprehensive Land Use Plan Recently ranked as the 3rd Most Competitive City by the National Competitiveness Council Total amount of investment
Slide 46: Project Site: City of San Fernando, Pampanga
PROJECT SITE: CITY OF SAN FERNANDO, PAMPANGA Located right at the San Fernando Interchange of the North Luzon Expressway (NLEX) and plying along the vital Gapan-San Fernando-Olongapo (GSO) Road (also known as ―Jose Abad Santos Avenue ―or JASA) Project Address Jose Abad Santos Ave., Barangay San Jose
Slide 47: New Acquisition in Key Growth Area
NEW ACQUISITION IN KEY GROWTH AREA Acquisition of close to 8 hectares of property situated across the SM and Robinsons malls in the City of San Fernando, Pampanga 46
Slide 48: Other Items
8 OTHER ITEMS
Slide 49: Other Items
OTHER ITEMS Treasury Buy Back — Purchased a total of 9,437,000 Treasury Shares from January to June 2013 — Purchased 5,000,000 Treasury Shares at an average price of P1.32 on 01 August 2013 Implementation of Employee Stock Grant Program as approved during Annual Stockholders’ Meeting on July 1,
Slide 50: Q&A
9 Q&A
Century Properties Group — Q2 2013 Earnings Presentation on 6ix