Raimon Land Public Co Ltd · SET:RML
Raimon Land Public — Q3 2008 Earnings Presentation
53 slides from Raimon Land Public's earnings presentation, Nov 28, 2008
Slide 1: Q308 results and review
Q308 results and review Investor and analyst meeting 28th November 2008
Slide 2: The views expressed here contain some information derived from publicly available sources that have
The views expressed here contain some information derived from publicly available sources that have not been independently verified. No representation or warranty is made as to the accuracy, completeness or reliability of the information. Any forward looking information in this presentation has been
Slide 3: Introduction
1. Introduction Nigel J. Cornick Chief Executive Officer 2. Investor focus: 185 Rajadamri 3. Market review 4. Project updates 5. Financial summary 3
Slide 4: Project timeline and value
Project timeline and value 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Bt 1.4 bn Bt 13.5 bn Bt 0.4 bn Q103 Q305 The Lofts Sathorn The Lofts Yennakart Bt 1.7 bn Bangkok Q107 Q303 Bt 12.1 bn The Lakes Q408 Bt 0.8 bn Q104 The Legend Bt 5.0 bn Q406 Bt 1.5 bn Bt 6.3 bn Q304 Q308 Resorts Northshore
Slide 5: Indicative target of recognized revenues
Indicative target of recognized revenues Bt 50 bn The Heights** Bt 46.1 bn Bt 0.5 bn Northpoint** Bt 4.7 bn Bt 45 bn The River Bt 13.5 bn Bt 40 bn Bt 35 bn The Lofts Southshore Bt 30 bn Bt 6.3 bn Bt 25 bn 185 Rajadamri Bt 12.1 bn Bt 20 bn Bt 15 bn AMALFI Bt 4.2 bn Bt 10 bn EDGE Bt 4.8 bn Bt 5 bn 200
Slide 6: Indicative target of project net margin
Indicative target of project net margin(a) Bt 2 bn Bt 4 bn Bt 6 bn Bt 8 bn Bt 10 bn Bt 12 bn Bt 14 bn Bt 1.0 bn 17% Total project sales Total net margin potential target: Bt 1.2 bn 2008-13 : >Bt 12 bn Total project sales target: Bt 4.0 bn 21% Bt 5.0 bn Total project Bt 10.3 bn 24% sales target: Bt 1
Slide 7: Highlights – Q308
Highlights – Q308 Financial summary Project progress (as at end Q3 08) 71% 76% % of total project area contracted(a) Total Q2 08 Bt 437 m 100% % of construction revenue completed(b) Q3 08 Bt 869m Q-Q: +99% 84% 86% % of total project area contracted(a) 84% 93% % of construction Gross profit Q2 08 Bt
Slide 8: 2008 Thailand Property Awards
2008 Thailand Property Awards Best Condo Development Eastern Seaboard Best Developer Best Development Website Best Condo Development Phuket 8
Slide 9: Investor focus: 185 Rajadamri
1. Introduction 2. Investor focus: 185 Rajadamri Nigel J. Cornick Chief Executive Officer 3. Market review 4. Project updates 5. Financial summary 4
Slide 10: 185 Rajadamri: key facts
185 Rajadamri: key facts Completion by Q4 2011 / 2012 Project value Bt 12.1 billion Saleable area 37,473 sqm Ownership type Freehold Land area 4:1:62.9 rai Total no. of units 236 units Type of units 1,2,3,4 bedrooms, duplex and penthouse Average price > Bt 325,000 per sqm 10
Slide 11: Location
Location Prestigious address on WIRELESS ROAD SATHORN ROAD Rajadamri Road next to Lumpini Park Lumpini Park and opposite the Royal RAJADAMRI ROAD SILOM ROAD RBSC Bangkok Sports Club Views comparable to New York’s Central Park or London’s Hyde Park 11
Slide 12: The views … Lumpini Park
The views … Lumpini Park Royal Bangkok Sports Club City Skyline 12
Slide 13: Cutting edge design and architecture
Cutting edge design and architecture Hans Brouwer Concept Designer Visionary architect. Former protégé of Sir Norman Foster Colin K. Okashimo Landscape Architecture Landscape and sculpture specialist Ricardo Bello Dias Interior Designer Much‐accoladed master designer based in Milan 13
Slide 14: Floor plan example: 2 bed duplex (151.5 sqm)
Floor plan example: 2 bed duplex (151.5 sqm) Lower Level Upper Level 14
Slide 15: Terms of payment
Terms of payment • Booking fee: Bt 200,000 • Contract signing: 10% • Installments: 30% over 30 months • Transfer: 60% (less booking fee) • Additional expenses: sinking fund of Bt 800 per sqm and common management fee of Bt 85 per sqm per month 15
Slide 16: Enquiries and marketing
Enquiries and marketing Enquiries to date Marketing strategy • Branding strategy focused on two groups: high society group and Cumulative enquiries business/career group from potential buyers • Affluent Thais plus HK, Singapore, UK, US, Middle East and Russia Foreign: 42% • Soft Launch from Nov 2008
Slide 17: Revenue structure for Tower 1 and Tower 2
Revenue structure for Tower 1 and Tower 2 Tower 1: Bt 4.4 bn, 73 units, 12,774 sqm Tower 2: Bt 3.4 bn, 63 units, 10,171 sqm 3 Bed‐ 4 Bed‐Duplex Penthouse Duplex 1 Unit 2 Bed‐Duplex 2 Units Bt 400k 1 Unit Bt 0.1 Bn 5 Units 4 Bed Bt 0.6 Bn 3 Bed 4 Units Bt 0.1 Bn Bt 0.3 Bn 22 Units Penthouse Bt 380k B
Slide 18: Indicative economics
Indicative economics Profit Sales before tax Bt 12.1 bn 35% Other costs 8% Construction 12% Financing Land & Design 29% 16% 18
Slide 19: Market review
1. Introduction 2. Investor focus: 185 Rajadamri 3. Market review Simon Derville VP – Research & Development 4. Project updates 5. Financial summary 5
Slide 20: Overall market trends and outlook
Overall market trends and outlook Bangkok Fewer projects were launched in Q3 in inner-city Bangkok Luxury property prices still held up but with fewer transactions Most luxury property buyers paid cash with Bangkok limited speculation: this will maintain prices Hua Hin Resorts Many projects postpone
Slide 21: Inner-city Bangkok: Q308 premium condominiums
Inner-city Bangkok: Q308 premium condominiums* c. 25 Unsold units c. 25 Sold units Lumpini 1 219 Unit (10% unsold) Sukhumvit 2 165 Unit Lumpini 3 (83% unsold**) 196 Unit (5% unsold) Sukhumvit 1 Lumpini 2 (Phase 2) 219 Unit 150 Unit (90% unsold) The River Sukhumvit 1 (Sold out) (Phase 2) 311 Unit Sat
Slide 22: Inner-city Bangkok: supply and demand analysis
Inner-city Bangkok: supply and demand analysis Launched and sold unit analysis* (number of unit) Sukhumvit Rama 3/ Silom/ Central Riverside Sathorn Lumpini Total launched unit 2,905 1,002 390 Unsold 363 217 32 Total launched unit 2,312 515 1,903* 604 602 Sold 443 1,797 254 from launch from launch to
Slide 23: Inner-city Bangkok: sales analysis
Inner-city Bangkok: sales analysis Sales value analysis (billion baht) Sukhumvit Rama 3/ Silom/ Central Riverside Sathorn Lumpini 9.0 2.7 0.8 0.7 Q308 0.6 0.6 6.3* 2.8 2.4 0.7 Q108-Q208 0.5* 9M08 Remark: *Sukhumvit 2’s sales value was re-adjusted down by 1 billion baht according to the figures repor
Slide 24: Inner-city Bangkok: pricing
Inner-city Bangkok: pricing Price of units sold (thousand baht per sq.m.) 400 Highest 369 recorded price 350 343 300 250 220 200 171 159 150 138 124 Average 120 107 market 100 95 price 86 89 82 84 78 81 50 0.3 1H05 2H05 1H06 2H06 1H07 2H07 1H08 2H08* Remark: *Figures as of Nov08 24 Source: Raimon La
Slide 25: Inner-city Bangkok: project transfers
Inner-city Bangkok: project transfers Transfer has commenced for three projects, Number of units Completion including Lumpini 1, Lumpini 2 and Sathorn 1 3,000 Up to Q308, Bt 5 billion of sales value or 44% 2,500 of total sales has been transferred 2,000 1,500 36% of transfer sales was for foreign bu
Slide 26: Pattaya: premium condo locations
Pattaya: premium condo locations* Jomtien 1 303 Unit (38% unsold) Northpoint The Lofts 376 Unit Southshore Na Jomtien (30% unsold) 720 Unit Jomtien 2 Beach Wongamart Beach (87% unsold) 332 Unit (62% unsold) Pattaya 1 105 Unit (52% unsold) Pattaya Bay Jomtien Beach Pattaya 2 315 Unit (91% unsold) Rem
Slide 27: Pattaya: supply and demand analysis
Pattaya: supply and demand analysis Launched and sold unit analysis* (number of units) Pattaya Jomtien Total launched unit 2,151 1,082 1,403 321 Unsold 434 748 Sold 314 2008 27 Source: Raimon Land’s research
Slide 28: Pattaya: sales analysis
Pattaya: sales analysis Sales value analysis (billion baht) 5.0 Pattaya Jomtien 1.3 2.5 1.2 Q308 1.5 2.5 Q108-Q208 1.0 9M08 28 Source: Raimon Land’s research
Slide 29: Pattaya: pricing
Pattaya: pricing Price of units sold (thousand baht per sq.m.) 400 350 300 250 Highest 200 198 recorded 166 price 150 139 Average 108 market 100 price 89 86 70 59 0.3 50 2004 2005 2006 2007 2008* Remark: *Figures as of Nov08 29 Source: Raimon Land’s research
Slide 30: Pattaya: market review
Pattaya: market review Currently, two projects have started piling, one project’s construction has commenced and three projects are still in land preparation stage Up to Q308, Bt 9.5 billion of project value has been sold or 40% of the total project value of Bt 24 billion Average price of sold units
Slide 31: Project updates
1. Introduction 2. Investor focus: 185 Rajadamri 3. Market review 4. Project updates Kitti Tungsriwong Chief Operating Officer 5. Financial summary 6
Slide 32: Current project progress – Bangkok
Current project progress – Bangkok The River The Lofts Yennakart Bt 13,500 m 19%(c) Bt 1,370 m 85%(c) 100% 76% Bt 961 m 71% 56% 59% 52% 46% 40% 40% 17% 14% 11% 9% 10% Bt 638 m 10% Project % % % Revenue Project % % % Revenue value Contracted(a) Received(b) Constructed(d) recognized value Contracted(a
Slide 33: Current project progress – Resorts
Current project progress – Resorts The Lofts Northpoint The Heights Southshore Bt 5,017 m Bt 1,205 m Bt 6,297 m 29%(c) 41%(c) 5%(c) 93% 86% 84% 84% Bt 914 m 66.4% 65.7% 48% 40% 40% 40% 38% 34% Bt 1,243 m 32% 19% 16% 10% 10% 9% 10% Bt 0 m 1% 0% Project % % % Revenue Project % % % Revenue Project % %
Slide 34: Current project curves (as at end Q3 08)
Current project curves (as at end Q3 08) The River (launched in Q107) The Lofts Yennakart (launched in Q305) Northpoint (launched in Q406) The Heights (launched in Q405) 34 Note: The Lofts Southshore has 9% saleable area contracted and 1% project value collected, however construction and revenue rec
Slide 35: Future projects
Future projects 185 Rajadamri AMALFI The EDGE Pre-registration since Jul 07 40 rai plot adjacent to Amanpuri 5 rai plot on Wong-Amat Beach Exclusive /soft luanch in Nov 08 and Chedi resorts (adjacent to the current Target project completion in 15 villas Northpoint project) 2011/2012 Sc
Slide 36: Financial summary
1. Introduction 2. Investor focus: 185 Rajadamri 3. Market review 4. Project updates 5. Financial summary Kitti Tungsriwong Chief Operating Officer
Slide 37: Total gross profit margin
Total gross profit margin Million baht 1,000 Total sales(a) 820 Gross Profit 800 28%Gross +84% 691 profit (Q308/Q208) 613 margin 37% 600 +137% 28% (Q308/Q307) 32% 432 396 400 33% 39% 72% 63% Cost of 68% goods sold(b) 200 67% 61% 0 Q307 Q407 Q108 Q208 Q308 Notes: (a) Total sales of residential condom
Slide 38: EBITDA & Net Profit
EBITDA & Net Profit EBITDA Net Profit (million baht) (million baht) +510% +445% (Q308/Q307) (Q308/Q307) Q307 Q407 Q108 Q208 Q308 Q307 Q407 Q108 Q208 Q308 120 120 80 80 102 40 78 40 81 68 17 16 15 20 0 0 (19) (66) -40 -40 -80 -80 40 Sources: Raimon Land’s financial statements
Slide 39: Capital structure
Capital structure Net interest bearing debt to book equity(a) (times) ND/E Net debt Bt. 4,157 m 1.36x 30 Sep 08* Total equity Bt. 3,052 m Net debt Bt. 3,627 m 30 Jun 08 1.22x Total equity Bt. 2,980 m Net debt Bt. 3,405 m 30 Sep 07 1.60x Total equity Bt. 2,126 m Notes: (a) Net int bearing debt to Equ
Slide 40: Q&A
Q&A RAIMON LAND doveloping a better environment
Slide 41: Balance sheet
Balance sheet Consolidated (million baht) 30 Sep 30 Jun 30 Sep Q308/Q208 Q308/Q307 2008 2008 2007 Chg Chg Cash & cash equivalent 549 795 431 -31% +27% Inventory – unbilled completed work 1,116 886 776 +26% +44% Inventory - development cost 5,866 6,459 5,582 -9% +5% Other current assets 397 244 172 +
Slide 42: Profit & loss
Profit & loss Consolidated (million baht) Q308 Q208 Q307 Q308/Q208 Q308/Q307 Chg Chg Total sales 820 432 396 +90% +107% Total revenue 869 437 399 +99% +118% Net operating expense (767) (456) (383) +68% +100% EBITDA 102 (19) 17 n.a. +510% Depreciation & amortization (9) (9) (7) -1% +34% EBIT 92 (29)
Slide 43: Key ratio
Key ratio Consolidated (million baht) Q308 Q208 Q307 Q308/Q208 Q308/Q307 Chg Chg Profitability GPM (%) 37.3 38.5 32.6 -3% +14% NPM (%) 9.3 -15.1 3.7 n.a. +150% ROA(a) (%) 3.5 -3.0 0.8 n.a. +329% ROE(b) (%) 10.6 -8.9 2.8 n.a. +280% Liquidity Current ratio (x) 2.04 1.98 1.51 +3% +35% Quick ratio (x) 0
Slide 44: EBITDA
EBITDA million baht Q307 Q407 Q108 Q208 Increase Increase Decrease Q308 in Total In Total In D&A 500 Revenue Expense 400 +510% (Q308/Q307 chg) 300 (311) 200 432 100 (0.1) 78 102 0 17 16 (19) -100 47 Sources: Raimon Land’s financial statements
Slide 45: Net Profit
Net Profit million baht Q307 Q407 Q108 Q208 Increase Increase Decrease Decrease Q308 in Total in Total in Interest in Minority 500 Revenue Expense Expense Interest 400 +445% (Q308/Q307 chg) 300 311 200 432 100 16 10 68 16 81 311 10 0 15 20 (66) -100 48 Sources: Raimon Land’s financial statements
Slide 46: Projects by value, unit price and saleable area
Projects by value, unit price and saleable area Completed Current Projects Future Projects Average Price Projects (baht / sq.m.) 350,000 185 Rajadamri Bt 12.1 bn 300,000 250,000 200,000 The AMALFI The Heights The EDGE Bt 4.2 bn Legend Bt 1.2 bn The River Bt 4.8 bn 150,000 Bt 0.8 bn The Lofts Northpo
Slide 47: Project summary table
Project summary table Saleable Saleable area Project value Project value Launch Completion Project value Avg price Construction(d) Unit area Contracted(c) received(e) recognized(f) date(a) date(b) (Mil. Bt.) (Bt/sq.m.) (%) (sq.m.) (%) (%) (%) CURRENT PROJECT The Lofts Q305 2007 1,370 176 17,240 80,0
Slide 48: Backlog
Backlog Property Sold value Recognized Unrecognized Collection (from launch to 30th (million baht) (million baht) (million baht) (%) September 2008) The River 7,637 (638) 6,999 19% Northpoint 3,259 (1,243) 2,017 29% The Heights 999 (914) 85 41% The Lofts Yennakart 961 (961) - 85% The Lofts Southshor
Slide 49: Completed projects – Bangkok
Completed projects – Bangkok THE LOFTS SATHORN THE LAKES THE LEGEND Emphasis on design and lifestyle Benchmark for the premium High rental yields, with an efficient Launched in 2003, completed in residential market design, received a highly positive 2004 Sold out within 5 days of its launc
Slide 50: Completed projects – Pattaya and Phuket
Completed projects – Pattaya and Phuket NORTHSHORE KATA GARDENS Evolution of Pattaya premium property market First project outside Bangkok Initial buyers are enjoying gross yields of 8-12%. The impressive sales results overcame the effects of the The publicity surrounding Northshore has in
Slide 51: Current projects – Bangkok
Current projects – Bangkok THE RIVER THE LOFTS YENNAKART Raimon Land’s largest project to date Launched in July 2005 and completed in Q407 Featuring 12 Rai site with 120 m of Chaopraya Riverside 176 condominium units frontage Located adjacent to Bangkok’s CBD on Soi Amorn Potential to be
Slide 52: Current projects – Pattaya and Phuket
Current projects – Pattaya and Phuket THE HEIGHTS NORTHPOINT THE LOFTS SOUTHSHORE 51 condominium units Second grade-A condominium 6 Rai freehold resort condominium Launched in December 2005, to be development in Pattaya Located on Pratumnak Road, South completed in 2008 Featuring 12 rai
Slide 53: Future projects
Future projects 185 RAJADAMRI AMALFI EDGE 4 Rai freehold in the heart of 40 rai plot on the headland that 5 Rai freehold resort condominium Bangkok’s CBD separates Surin and Located on the Wong-Amat Beach Along Rajadamri Road within walking Bang Tao beaches, Phuket (adjacent to the current