Century Properties Group Inc. · PSE:CPG
Century Properties — FY2014 Earnings Presentation
62 slides from Century Properties's earnings presentation, May 11, 2015
Slide 1: Analysts Presentation
CENTURY PROPERTIES GROUP Analysts Presentation 11 May 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 CPG’s Market Segments 3 Financial Performance 4 Century 2020 5 Appendix A – Construction Updates 2
Slide 4: Introduction
STRICTLY CONFIDENTIAL 1 INTRODUCTION
Slide 5: 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 2014 Change Interest Rate (1) 8.9% 5.6% -3.3% 2011 to 2014 # of Buildings 7 Completed Gramercy, Knightsbridge,
Slide 6: Shift in Financial Strategy
SHIFT IN FINANCIAL STRATEGY The positive structural story for Philippine real estate is intact CPG focus has been on sales volume growth which resulted to significant gain in market share Focus to move from top-line growth to other important determinants of shareholder value o Return on invest
Slide 7: CPG's Market Segments
STRICTLY CONFIDENTIAL 2 CPG’S MARKET SEGMENTS
Slide 8: 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 9: Vertical Developments
1 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
Slide 10: Vertical Developments
1 VERTICAL DEVELOPMENTS FY2011 FY2012 FY2013 FY2014 PHP18.4bn PHP21.4bn PHP24.6bn PHP21.7bn 24% 26% 28% 33% Total Pre- Sales By Geography 67% 74% 72% 76% Phillipines 22% 69% International 5% 7% 5% 4% 11% 15% 7% 28% 28% 15% 27% 16% 53% Total Pre- 19% Sales By 14% Country 18% 14% 17% 28% 9% 29% 33% 38
Slide 11: Vertical Developments
1 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 241,251 242,138 251,107 238,990 235,071 218,684 203,591 Luxury Segment FY12 FY13 FY14 1Q14 2Q14 3Q14 4Q14 Average
Slide 12: Vertical Developments
1 VERTICAL DEVELOPMENTS Significant tear term completion over the next 9 months 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 buildings in Acqua, 2 buildings in Azure, and 1 b
Slide 13: Vertical Developments
1 VERTICAL DEVELOPMENTS Strong pre-sales and cash flow from upcoming project completions CPG has enjoyed strong historical pre-sales with 91% of its current inventory already pre-sold (in terms of units) Expects to enjoy strong cash collections from pre-sold projects that are due to complete in
Slide 14: Leasing
2 LEASING For Lease Projects Capex GLA (sq.m) Completion / Targeted (Php Billion) Completion Dates Century City Mall 1.5 49,123 2013 PSB Lowrise Tower 0.21 2,958 2014 Centuria Medical Makati 0.5 7,1502 2014 Asian Century Center (Fort) 0.9 26,8433 2017 Acqua 6 (Condotel) 0.6 13,3492 2019 Forbes Media
Slide 15: Leasing
2 LEASING Average Increase in Mall Foot Traffic (% change vs March 2014) 59% 41% 12% 8% Q2 2014 Q3 2014 Q4 2014 Q1 2015 Century City Mall’s foot traffic has increased by more than 40% in Q4 2014 since its opening in March 2014, mainly due to seasonally higher mall visitors The increase in averag
Slide 16: Leasing
2 LEASING Centuria Medical Makati was completed in December 2014 Information technology out-patient 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 15
Slide 17: Leisure and Tourism – San Vicente, Palawan
3 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 bea
Slide 18: Zone 2 16.3 Ha land are
Zone 2 16.3 Ha Zone 1 land are 19.7 Ha useable land area Zone 3 11 Ha useable land area. 17
Slide 19: Leisure and Tourism: San Vicente Location Map
3 LEISURE AND TOURISM San Vicente: Location Map 18
Slide 20: Leisure and Tourism: Visitor Arrivals to Palawan
3 LEISURE AND TOURISM Visitor Arrivals to Palawan Source: Provincial Government of Palawan Source: Provincial Government of Palawan Tourist numbers to Palawan’s capital city registered at 654,033 visitors in 2012. This is a record high ever, representing a 27% surge vs. 2011 and a 20% CAGR between
Slide 21: Palawan Hotel Market Overview
3 LEISURE AND TOURISM Palawan Hotel Market Overview As of December 2012, there were 2,981 rooms in registered accommodation establishments according to the Provincial Government of Palawan. This was a growth of 57% over 2011. Market-wide occupancy registered at 49% in 2012. Monthly average occup
Slide 22: Palawan As A Destination
3 LEISURE AND TOURISM Palawan As A Destination Take a Boat Deep into the Puerto Princesa Subterranean River When Filipinos, people who live in a country of 7,107 islands and countless beaches, consider a place to be the epitome of tropical paradise, you know it must be something special. Palawan is
Slide 23: Leisure and Tourism - Batulao
3 LEISURE AND TOURISM - BATULAO Club Batulao features outstanding design and environment with sporting, recreational, social and entertainment components, all centered around your own private beach club and crystal lagoon at the foothills of Mount Batulao. The service and facilities have been create
Slide 24: Club Batulao Phase Masterplan
3 LEISURE AND TOURISM Club Batulao Phase 1 Masterplan Proposed 36-Ha Development 3 2 3 2 2 6 3 6 3 P R I VAT E A R E A S – PRODUCTS RESIDENT7 IAL AND 5 1 Club Batulao E X C L2U S I V E M E M B E R S H I P 2 1 13 2 Montana Condo 3 3 Residential Lots Village 4 Sales Center + Café 3 1 1 5 Banquet Garde
Slide 25: Club Batulao Site Development Plan
3 LEISURE AND TOURISM Club Batulao Site Development Plan SPA CASITAS LAKE BEHIND CLUB BATULAO CLUBHOUSE ENTRANCE 2424
Slide 26: Leisure and Tourism – Acqua 6
3 LEISURE AND TOURISM – ACQUA 6 Another brand collaboration For its 6th Acqua tower, CPG embarks on its first hotel project in partnership with a world-renowned hotel brand, Novotel 25
Slide 27: Partnership with Accor
3 LEISURE AND TOURISM With the resounding success of Acqua’s first 5 towers, Century Properties embarks on its first hotel project in partnership with world-renowned hotel chain ACCOR. o Accor provides an extensive offer including complementary brands—from luxury to economy—that are recognized and a
Slide 28: Horizontal Economic Housing: Target Market
4 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: Potential Locations – Next Wave Cities
4 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 Meycauya
Slide 30: Financial Performance
STRICTLY CONFIDENTIAL 3 FINANCIAL PERFORMANCE
Slide 31: Sustained Earnings Growth
SUSTAINED EARNINGS GROWTH Key Income Statement Details Total revenues (Php Million) Gross profit from real estate development1 (Php Million) 12,761 Margin (%) 42 45 42 46 10,809 5,306 9,611 4,192 3,962 4,702 1,751 2011 2012 2013 2014 2011 2012 2013 2014 EBITDA1 (Php Million) Profit After Tax (Php Mi
Slide 32: Stable Revenues from Property Management
STABLE REVENUES FROM PROPERTY MANAGEMENT Revenue Contribution by the Property Management Segment Php million 286 254 222 192 2011 2012 2013 2014 Breakdown of Properties under Management as of December 2014 Notable Projects under Management, with 83% of Contracts with 3rd (by sq.m.) Parties Asian D
Slide 33: New Source of Recurring Income – Mall
NEW SOURCE OF RECURRING INCOME – MALL 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 Q3 2014 56.5 Q4 2014 150.5 FY 2014 207.0 Century City Mall Project Details Launched: 2011 Completion: 2013 Opening d
Slide 34: Healthy Balance Sheet
HEALTHY BALANCE SHEET Amount in Php Million 2011 2012 2013 2014 Cash and Cash Equivalents 367 902 1,439 1,429 Total Assets 10,033 18,556 26,166 31,650 Total Borrowings 883 3,661 6,039 10,931 Net Debt 516 2,759 4,600 9,502 Stockholder’s Equity 4,322 8,241 11,435 13,304 Debt-to-Equity Ratio Net Debt-t
Slide 35: 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 36: 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 37: Century 2020
STRICTLY CONFIDENTIAL 4 CENTURY 2020
Slide 38: Century 2020: Outlook
CENTURY 2020 Outlook Significant opportunity in Philippines, but also significant expansion of supply Vertical Developments We will continue to differentiate our products in light of increasing competition Long term structural story remains intact, but also significant expansion of supply Inve
Slide 39: 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
Slide 40: Century 2020: Financial Strategy
CENTURY 2020 Financial Strategy Vertical Accelerate conversion of receivables to cash, to further increase IRRs and Developments free up balance sheet, thus allowing Century to re-invest into allied sectors Seasoning of Projected Accounts Receivable as of YE 20141 (Php Million) 28,692 10,184 Less
Slide 41: Century 2020: Financial Strategy
CENTURY 2020 Financial Strategy Leisure and Optimistic on the potential sector, serving the needs of both non-Filipinos Tourism and Filipinos who have investible funds and are less term sensitive Horizontal Projected higher margin will result in higher ROIC, while shorter turn around Economic (1
Slide 42: Century 2020: Capital Allocation
CENTURY 2020 Capital Allocation We will match our capital allocation priorities to our operating philosophy 1 Invest in Four Operating Segments We will continually invest in our four operating segments, while increasing our ROIC and IRR, and diversification objectives Assuming a nominal debt lev
Slide 43: Appendix A Construction Updates
STRICTLY CONFIDENTIAL 5 APPENDIX A CONSTRUCTION UPDATES
Slide 44: Overview of Master-Planned Communities
OVERVIEW OF MASTER-PLANNED COMMUNITIES GFA Average Unit Number of Target (inclusive of Project Type of Project Price (PHP Location Buildings / Status of Development Markets1 parking millions) Units space) (sq.m.) 3 completed buildings as of 30 September 2014 Middle Income 4.4 1 completed office
Slide 45: Century City
CENTURY CITY With development having begun in 2007, Century City is a 3.4-hectare mixed-use project in Makati City with 8 buildings covering a total planned GFA (with parking) of 643,175 sq.m. The development is a groundbreaking architectural and design landmark The Company has completed the G
Slide 46: Century City (Cont'd)
CENTURY CITY (Cont’d) Centuria Trump Tower Gramercy Knightsbridge Century City Milano Forbes Media Medical at Century Century Spire Residences Residences Mall Residences Tower Makati City Century City First private To capitalize on Launched in Philippines’ first 2nd residential Mall is t
Slide 47: Milano Residences at Century City
CENTURY CITY (Cont’d) Milano Residences at Century City • Structural and architectural works in Milano Residences have reached its finishing stages • Finishing works for the 53-storey residential tower is at its full swing • Interior and exterior finishing are now ongoing on all residential units wh
Slide 48: Trump Tower at Century City
CENTURY CITY (Cont’d) Trump Tower at Century City • Luxury residential skyscraper Trump Tower is showing significant progress this first quarter of 2015 • The 56-storey branded tower reached 28 floors in December 2014 and is now rising to its 31st level • Construction activities have reached the 30t
Slide 49: Century Spire
CENTURY CITY (Cont’d) Century Spire • Phase II excavation works are ongoing while the Phase I of the basement’s structural works are complete • Century Spire is a mixed- use tower rising in Century City. With luxury residential units and premium Grade A office spaces • The building is slated for com
Slide 50: Acqua Private Residences
ACQUA PRIVATE RESIDENCES Acqua Private Residences is a six-tower master- planned development at the border of Makati City and Mandaluyong City The towers are each expected to have views of the Makati City skyline Sutherland Livingstone The amenities are Niagara Tower Detifoss Tower Iguazu Towe
Slide 51: Acqua Private Residences (Cont'd)
ACQUA PRIVATE RESIDENCES (Cont’d) • The first tower, The Niagara, is completed and starting turnover in the first quarter of 2015. • Finishing activities in the Sutherland tower are on-going. • The third and fourth Acqua towers, Dettifoss and Livingstone, recently held topping off ceremonies to mark
Slide 52: Azure Urban Resort Residences
AZURE URBAN RESORT RESIDENCES Designed by the award-winning master planning and architectural firm Broadway Malyan, Azure Urban Resort Residences is expected to consist of 9 residential buildings on a 6-hectare property, with 80% of the land dedicated to open space The property is the first man-
Slide 53: Miami and Positano Towers
AZURE URBAN RESORT RESIDENCES (Cont’d) Miami and Positano Towers • Installation of exterior doors and windows are nearing completion • Both scheduled for turnover this year • Architectural finishing works continue for the two buildings 52
Slide 54: Maldives Tower
AZURE URBAN RESORT RESIDENCES (Cont’d) Maldives Tower • Concrete pouring for the 15th floor of the sixth tower, Maldives, is on-going 53
Slide 55: Boracay Tower
AZURE URBAN RESORT RESIDENCES (Cont’d) Boracay Tower • Boracay Tower now stands at 2 floors and is currently undergoing structural formworks • Bahamas, the last residential tower in Azure, is scheduled for excavation in the second quarter of 2015. 54
Slide 56: The Residences at Commonwealth
THE RESIDENCES AT COMMONWEALTH The Residences at Commonwealth is a 4.4- hectare project of the Company and its first master-planned residential community development in Quezon City The 8-tower project will rise in Commonwealth Avenue Quezon South Quirino West Osmena West Roxas East within the vi
Slide 57: Osmena West Tower
THE RESIDENCES AT COMMONWEALTH (Cont’d) Osmena West Tower • Osmena West is now in its finishing stages and is targeted to start turnover in the first quarter of 2015. 56
Slide 58: Osmena West Tower
THE RESIDENCES AT COMMONWEALTH (Cont’d) Osmena West Tower • Structural works continue for Quezon North Tower, the second tower to rise in Commonwealth by Century 57
Slide 59: Quirino East Tower
THE RESIDENCES AT COMMONWEALTH (Cont’d) Quirino East Tower • The laying of structural foundation for Quirino East is now ongoing 58
Slide 60: Canyon Ranch and Asian Century Center
CANYON RANCH and ASIAN CENTURY CENTER Canyon Ranch Asia Century Center The Canyon Ranch development, located in Carmona, Cavite, is a The planned office development in Fort Bonifacio will be the Company’s community south of Manila containing single family detached homes first venture into the of
Slide 61: Asian Century Tower
ASIAN CENTURY TOWER • Concrete pouring is ongoing at the 7th level of the 23-storey office building • Concrete pouring for the foundation of the elevator shaft 60
Slide 62: Thank You
STRICTLY CONFIDENTIAL THANK YOU
Century Properties Group — FY2014 Earnings Presentation on 6ix