Century Properties Group Inc. · PSE:CPG
Century Properties — FY2013 Earnings Presentation
48 slides from Century Properties's earnings presentation, April 2014
Slide 1: Analysts Presentation: FY 2013 Results
CENTURY PROPERTIES GROUP, INC. Analysts Presentation: FY 2013 Results April 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 16 CAPITAL MANAGEMENT 4 “PROOF OF CONCEPT” 22 5 FUTURE PROJECTS 43
Slide 4: Introduction
INTRODUCTION 1
Slide 5: Where We Are Now
WHERE WE ARE NOW Earnings Momentum FY 2013 Revenue of P10.8 B, representing 12.5% growth from P9.6 B in FY 2012 FY 2013 Gross Profit from Real Estate Development of P4.2 B, representing 5.8% growth from P4.0 B in FY 2012 FY 2013 EBITDA of P2.8 B, representing 8.0% growth from P2.6 B in FY 2012
Slide 6: Where We Are Now
WHERE WE ARE NOW Earnings Sustainability Pre-Sales • FY 2013 Pre-Sales of P24.6 B, representing 15% growth from P21.4 B in FY 2012 • Total un-booked revenues amounting to P35.1 B as of December 2013 • FY 2013 pre-sales as % of new launches was at 124% mitigating inventory buildup Liquidity • Tot
Slide 7: Results Overview
RESULTS OVERVIEW PHP (Million) FY 2011 FY 2012 FY 2013 Total Revenues 4,702 9,611 10,809 Gross Profit from Real Estate Development1 1,751 3,962 4,192 EBITDA1 1,353 2,543 2,786 Net Income 866 1,850 1,845 Gross Profit Margin from Real Estate Development1 41.7% 44.5% 42.1% Net Income Margin 18.4% 19.2%
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: 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 9
Slide 11: Real Estate Market Overview
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 10
Slide 12: Pre-Sales
PRE-SALES Balanced Product Mix 15 % FY 2012 By Product: Php21.4 B Total Pre-sales Increase FY 2013 By Product: Php24.6 B Total Pre-sales Luxury 22% Luxury 26% Affordable 45% Affordable 51% Middle Middle Income Income 23% 33% Visibility on earnings with P35.1 B of un-booked revenue Note: Luxury, Midd
Slide 13: Pre-Sales
PRE-SALES Industry Leading International Sales Platform FY 2013 By Geographic Location FY 2013 By Country Others 8% Philippines North America Philippines 28% 13% 28% Middle East 5% Europe 11% International 72% Asia 35% 12
Slide 14: Unparalleled International Sales Platform and Prudent Launches
UNPARALLELED INTERNATIONAL SALES PLATFORM AND PRUDENT LAUNCHES Increased market share through dominant international sales and marketing presence Launching projects in a staggered manner to prevent build-up of inventory CPG is #3 in terms of value of units sold as of FY 2013 Total inventory for FY 2
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) 210,000 208,000 170,000 166,696 205,000 160,000 200,000 150,000 195,000 193,146 140,000 133,084 190,000 130,000 185,000 120,000 FY 2012 FY 2013 FY 2012 FY 2013 Affordable (Ave. PSM, Sold)
Slide 16: Collection Snapshot
COLLECTION SNAPSHOT Middle Income Affordable Payment of Turnover Balances Payment of Turnover Balances In-house In-house Bank Financing Financing Financing 1% 3% 42% Bank Financing 58% Cash Payment 39% Cash Payment 57% Note: Past collection efficiency is not an indication of future collection effici
Slide 17: Financial Performance and Capital Management
FINANCIAL PERFORMANCE AND CAPITAL MANAGEMENT 3
Slide 18: Sustained Earnings Growth Momentum
SUSTAINED EARNINGS GROWTH MOMENTUM Key Income Statement Details Total revenues (Php Million) Gross profit from real estate development1 (Php Million) 12,000 10,809 Margin (%) 5,000 37 42 45 42 9,611 10,000 4,192 3,962 4,000 8,000 3,000 6,000 4,702 2,000 1,751 4,000 3,072 994 2,000 1,000 0 0 2010 201
Slide 19: Healthy Balance Sheet
HEALTHY BALANCE SHEET Amount in Php Million 2010 2011 2012 2013 Cash and Cash 283 367 902 1,439 Equivalents Total Assets 7,555 10,033 18,556 26,166 Total 1,226 883 3,661 6,039 Borrowings Net Debt 943 516 2,759 4,600 Stockholder’s 2,950 4,322 8,241 11,435 Equity Debt-to-Equity Ratio Net Debt-to-Equit
Slide 20: Improving Operating Cash Flow
IMPROVING OPERATING CASH FLOW Amount in Php Million 2010 2011 2012 2013 Cash Flow from Operations (922) (252) (3,414) (1,586) Cash Flow from Investing (109) 325 (863) (1,548) Cash Flow from Financing 1,177 11 4,812 3,670 Change in Cash 147 84 535 537 Beginning Cash 136 283 367 902 Ending Cash 283 36
Slide 21: 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 12 10.0% 9.5% 13,000 9.5% 9.0% 8.9% 11,000 10,645 8.5% 9,000 8.0% 7.5% 7.5% 7,000 6,571 7.0% 5,000 6.5% 6.0% 6.1% 3,000 2,395 1,695 5.5% 1,000 5.0%
Slide 22: Increasing Revenues from Property Management
INCREASING REVENUES FROM PROPERTY MANAGEMENT Total Revenues from Property Management (Php Million) 300 254 250 222 200 192 172 150 100 50 0 2010 2011 2012 2013 Largest Independent Property Manager with 49 Notable Projects Under Management, with 80% Buildings Totaling 2.6M sqm under Management of con
Slide 23: Proof of Concept
PROOF OF CONCEPT 4
Slide 24: Azure Urban Resort Residences (Then & Now)
1 AZURE URBAN RESORT RESIDENCES (THEN & NOW) An aerial view of the Azure project A landscape view of the Azure development with the resort-themed amenities 23
Slide 25: Azure Urban Resort Residences (Now)
1 AZURE URBAN RESORT RESIDENCES (NOW) The Paris Beach Club was inaugurated on March 13 24
Slide 26: Azure Urban Resort Residences (Now)
13 AZURE URBAN RESORT RESIDENCES (NOW) St. Tropez begins turnover in February; Positano and Miami buildings top off Azure’s third tower, St. Tropez, has began turnover of its first few units in February. Tthe Paris Beach Club and Azure’s first four residential towers. 25
Slide 27: Azure Urban Resort Residences (Now)
13 AZURE URBAN RESORT RESIDENCES (NOW) Miami and Positano towers Positano completed its superstructure Following structural completion, the Miami and Positano Towers have moved on to interior activities. 26
Slide 28: Azure Urban Resort Residences (Now)
13 AZURE URBAN RESORT RESIDENCES (NOW) Boracay and Maldives towers The Boracay Tower and Maldives Tower are undergoing basement works. 27
Slide 29: Acqua Private Residences (Then & Now)
2 ACQUA PRIVATE RESIDENCES (THEN & NOW) 28
Slide 30: Acqua Private Residences (Now)
23 ACQUA PRIVATE RESIDENCES (NOW) Niagara undergoing finishing works; Sutherland has topped of already 29
Slide 31: Acqua Private Residences (Now)
23 ACQUA PRIVATE RESIDENCES (NOW) Frameworks and rebar installation for Detifoss tower, while Livingstone is progressing well in its construction 30
Slide 32: Acqua Private Residences
23 ACQUA PRIVATE RESIDENCES The Niagara Tower Ceramic flooring and light wood kitchen cabinets have been installed in this corner unit. Dark wood finishes and cream walls are shown in this unit’s kitchen area. 31
Slide 33: Century City (Then & Now)
33 CENTURY CITY (THEN & NOW) 32
Slide 34: Gramercy (Now)
3 GRAMERCY (NOW) 71 Gramercy dining entrance View from 71 Gramercy 71 Gramercy lounge bar 33
Slide 35: Century City Mall (Then & Now)
3 CENTURY CITY MALL (THEN & NOW) Century City Mall was formally inaugurated on March 24 34
Slide 36: Century City Mall (Now)
3 CENTURY CITY MALL (NOW) 35
Slide 37: Century City Mall (Now)
3 CENTURY CITY MALL (NOW) 36
Slide 38: The Knightsbridge Residences (Then & Now)
3 THE KNIGHTSBRIDGE RESIDENCES (THEN & NOW) The Knightsbridge Residences was completed in December 2013 and started turning over In January. 37
Slide 39: The Knightsbridge Residences (Now)
3 THE KNIGHTSBRIDGE RESIDENCES (NOW) 38
Slide 40: Centuria Medical Makati (Then & Now)
3 CENTURIA MEDICAL MAKATI (THEN & NOW) Centuria Medical Makati continues interior works in preparation for turnover this year Century Properties’ IT-medical outpatient facility, moves on with masonry activities, painting works, and dry wall partitioning on various levels of the tower. Centuria Medic
Slide 41: Milano Residences (Then & Now)
33 MILANO RESIDENCES (THEN & NOW) Milano Residences is almost complete with its topping off, for completion in December 2015 40
Slide 42: The Residences at Commonwealth (Then)
4 THE RESIDENCES AT COMMONWEALTH (THEN) 41
Slide 43: The Residences at Commonwealth (Now)
4 THE RESIDENCES AT COMMONWEALTH (NOW) Finishing works at the first tower. Second and third towers continue structural progress The first tower, Osmeña West (right), is undergoing exterior painting works. The second tower, Quezon North (left), is on 6th floor structural activities. The Osmeña East T
Slide 44: Future Projects
FUTURE PROJECTS 5
Slide 45: New Project Launch
NEW PROJECT LAUNCH Earnings Sustainability: New Project Launches in 2014 GFA (sqm, excl parking) Projected Sales Estimated For Sale For Sale For Lease Revenue Project Launch Date Completion Residential Commercial Commercial Total (Sqm) (P Million) Mall 2011 2013 - - 33,943 33,943 NA Centuria1 2010 2
Slide 46: New Project Launch - Forbes
NEW PROJECT LAUNCH - FORBES 3 45
Slide 47: New Project Launch – Acqua 6
NEW PROJECT LAUNCH – ACQUA 6 46
Slide 48: Q&A
Q&A 6
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