Century Properties Group Inc. · PSE:CPG
Century Properties — Q2 2015 Earnings Presentation
30 slides from Century Properties's earnings presentation, Sep 11, 2015
Slide 1: Century Properties Group Analysts Presentation
CENTURY PROPERTIES GROUP Analysts Presentation September 2015 STRICTLY CONFIDENTIAL 0
Slide 2: Important Notice and Disclaimer
IMPORTANT NOTICE AND DISCLAIMER These materials have been prepared by Century Properties Group, Inc. (together with its subsidiaries, “CPGI”, the "Company”, or “Century”), and have not been independently verified. No representation or warranty, expressed or implied, is made and no reliance should be
Slide 3: Table of Contents
TABLE OF CONTENTS 1 Introduction 2 Residential Business Segment 3 Financial Performance 4 Credit Facilities 5 New Business Segments 2
Slide 4: Introduction
STRICTLY CONFIDENTIAL 1 INTRODUCTION
Slide 5: Shareholding and Corporate Structure
SHAREHOLDING AND CORPORATE STRUCTURE Century Properties, Inc. Public (“CPI”) 32.7% 67.3% Company listed on Philippine Stock Exchange Century Properties Group, Inc. (“CPG”) 100% 100% 100% 100% 100% 100% Principal Century City Century Limitless Century Properties Century Communities Century Properties
Slide 6: History & Key Milestones
HISTORY & KEY MILESTONES Raised PHP 1.6 billion from 800 million shares issued, increasing free float to 33.2% 2014 Completed “backdoor listing” with EAPRC2 Launched its first Issued PHP 1.6 billion large-scale house convertible bond to Dutch and lot development pension fund APG Began development of
Slide 7: Century's Management Team
CENTURY’S MANAGEMENT TEAM Century Properties has a highly experienced management team with proven track record and ability to drive growth Century Properties has an experienced management team that has been with the Company since its founding, with an average of 20 years of operational and managem
Slide 8: Significant Growth Since IPO
SIGNIFICANT GROWTH SINCE IPO In Million Php 2011 2014 3-Year CAGR Revenue 4,702 12,761 39.5% NIBT 1,247 3,171 36.5% NIAT 866 2,159 35.6% Amount of Credit 2,395 16,740 91.2% Facilities 2011 June 2015 Change Interest Rate (1) 8.9% 6.3% -2.6% Un-Booked Revenue 24,801 25,765 964 2011 to June 2015 # of P
Slide 9: Residential Business Segment
STRICTLY CONFIDENTIAL 2 RESIDENTIAL BUSINESS SEGMENT
Slide 10: Vertical Developments
VERTICAL DEVELOPMENTS CPG is able to tap into the demand from geographically diversified OFWs with higher incomes and overseas buyers, deriving approximately 2/3 of its pre-sales from overseas Overseas market, underpinned by OFW buyers, represents one of the more resilient sources of demand for Ph
Slide 11: Vertical Developments
VERTICAL DEVELOPMENTS FY2011 FY2012 FY2013 FY2014 H12015 PHP18.4bn PHP21.4bn PHP24.6bn PHP21.7bn PHP7.6bn 17% 26% 28% 29% 33% Total Pre- Sales By 67% 72% 74% Geography 71% 83% Phillipines 22% 69% International 8% 7% 5% 4% 5% 5% 4% 15% 28% 15% 27% 28% 28% 31% Total Pre- 16% 16% 30% Sales By Country 1
Slide 12: Vertical Developments
VERTICAL DEVELOPMENTS CPG has been able to consistently increase its average selling prices by providing high quality, innovative and well-branded products Average PHP per sq.m., Sold 241,251 238,990 242,138 251,107 235,071 233,698 218,684 216,197 203,591 Luxury Segment FY12 FY13 FY14 1Q14 2Q14 3Q14
Slide 13: Vertical Developments
VERTICAL DEVELOPMENTS Significant near term completion over the next 9 months – the most turnovers in a single year to date 6 buildings with total units of 2,997, GFA of 224,168 sqm and sales value of Php15.8 Bn (VAT inclusive) completing in 2015 This includes 1 building in Century City, 2 build
Slide 14: Vertical Developments
VERTICAL DEVELOPMENTS Strong pre-sales and cash flow from upcoming project completions CPG has experienced strong historical pre-sales with 91% of its current inventory already pre-sold (in terms of units) Expects to register strong cash collections from pre-sold projects that are due to complet
Slide 15: Financial Performance
STRICTLY CONFIDENTIAL 3 FINANCIAL PERFORMANCE
Slide 16: Sustained Earnings Growth
SUSTAINED EARNINGS GROWTH Key Income Statement Details Total revenues (Php Million) Gross profit from real estate development1 (Php Million) 12,761 5,306 10,809 9,611 4,192 3,962 % Change: 9.7% % Change: 8.7% 6,166 5,620 2,493 4,702 2,293 1,751 2011 2012 2013 2014 H1 2014 H1 2015 2011 2012 2013 2014
Slide 17: Healthy Balance Sheet
HEALTHY BALANCE SHEET Amount in Php Million 2011 2012 2013 2014 June 2015 Cash and Cash 367 902 1,439 1,429 854 Equivalents Total Assets 10,033 18,556 26,166 31,650 35,426 Total Borrowings 883 3,661 6,039 10,931 11,842 Net Debt 516 2,759 4,600 9,502 10,988 Stockholder’s Equity 4,323 8,241 11,435 13,
Slide 18: Projected Collections
PROJECTED COLLECTIONS Projected Accounts Receivable as of YE 20141,2 (Php Million) 12,158 Significant receivables projected to be 11,019 completed in the near term to support Century's financial strategy of re- investing into other operating segments 6,302 Out of the Php40.8 billion of receivabl
Slide 19: Credit Facilities
STRICTLY CONFIDENTIAL 4 CREDIT FACILITIES
Slide 20: Committed Credit Facilities
COMMITED CREDIT FACILITIES CPG’s growth is supported by strong banking relationships and an increasing amount of approved credit facilities at a lower weighted average cost Prepayment of development loans through increased CTS financing and end-buyer mortgage frees up CPG's corporate lines for new p
Slide 21: Century's Credit Profile
CENTURY’S CREDIT PROFILE Original Principal Amount Amount Outstanding* Description of Indebtedness (PHP Million) (PHP Million) Term Loan1 3,945.1 1,390.4 Syndicated Loan2 4,200.0 2,990.5 Peso-denominated Bond 2,700.0 2,700.0 Contract-To-Sell Financing3 5,140.0 4,288.2 Letter of Credit / Trust Receip
Slide 22: New Business Segments
STRICTLY CONFIDENTIAL 5 NEW BUSINESS SEGMENTS
Slide 23: The Four Market Segments of CPG
THE FOUR MARKET SEGMENTS OF CPG We are currently present in two operating segments, but, are in the process of diversifying into two “allied real estate” segments, to further strengthen our portfolio. These are based on key secular trends that lead to specific investment and operational opportun
Slide 24: Leasing
LEASING For Lease Projects Capex GFA (sq.m) Completion / Targeted (Php Billion) Completion Dates Century City Mall 1.5 52,233 2013 PSB Lowrise Tower 0.21 6,957 2014 Centuria Medical Makati 0.5 74,103 2014 Asian Century Center (Fort) 0.9 28,0462 2017 Acqua 6 (Condotel) 0.6 39,172 2019 Total 3.7 200,5
Slide 25: Leasing
LEASING Century City Mall is CPG’s first standalone retail development and is Makati’s newest mall in close to a decade Leasing Revenue Php Million FY 2014 207.0 H1 2015 147.2 Average Increase in Mall Foot Traffic (% change vs March 2014) 59% 41% 12% 8% Q2 2014 Q3 2014 Q4 2014 Q1 2015 Century City M
Slide 26: Leasing
LEASING Centuria Medical Makati was completed in December 2014 A one-stop information technology outpatient medical facility that offers clinic and office spaces for sale to doctors and wellness practitioners Consist of office suites both for sale and for lease Equipped with hospital-grade fac
Slide 27: Leisure and Tourism – San Vicente, Palawan
LEISURE AND TOURISM – SAN VICENTE, PALAWAN 700 Meters of white sand beach, crystal clear blue water nestled in the sub tropical Archipelago of Palawan, Philippines The first plot to be developed, Cape San Vicente includes over 56 hectares of land, including unparalleled bays and a palm-fringed beach
Slide 28: Horizontal Economic Housing
HORIZONTAL ECONOMIC HOUSING Target market College graduates with stable jobs in the next wave cities, making at least P25,000 monthly, currently renting OFWs with families still living in the target locations, currently renting or, if asset owners, homes are in non-subdivision locations 27
Slide 29: Horizontal Economic Housing
HORIZONTAL ECONOMIC HOUSING Potential Locations – Sites Considered as “NEXT WAVE CITIES” Locations qualify as “next wave Baguio Metro Bulacan cities” because of the available (Baliwag, worker supply, telecoms, and Calumpit, Malolos, Marilao, infrastructure to sustain locators Metro Cavite Meycauyan)
Slide 30: Century 2020
CENTURY 2020 Pre Sales Landbank Single digit to low double digits Selectively seek new landbank, Vertical range, subject to launch of new but has to be right location, price Developments horizontal, and tourism and terms in main business development districts and its environs Leisure and Suffi
Century Properties Group — Q2 2015 Earnings Presentation on 6ix