Sansiri Public Co. Ltd. · SET:SIRI
Sansiri Public — Investor Presentation (October 2009)
28 slides from Sansiri Public's investor presentation, October 2009
Slide 1: Sansiri October 2009
iol. October SANSIRI
Slide 2: Disclaimer
Disclaimer Information contained in this presentation is intended solely for your personal reference and is strictly confidential. Such information is subject to change without notice, its accuracy is not guaranteed and it may not contain all material information concerning Sansiri Public Company Li
Slide 3: Section 1: Company Overview
SECTION 1 Company Overview 2
Slide 4: Thailand's only fully-integrated property developer
Thailand’s only fully-integrated property developer Sansiri is headquartered at Bangkok, Thailand and Financial track record and balance sheet strength Revenue employs ~2,000 people 16,000 15,178 2006-08 CAGR: 15% − 25-year track record 13,889 THB Million 14,000 − Publicly listed on SET in 1996 11,4
Slide 5: Thailand's only fully-integrated property developer
Thailand’s only fully-integrated property developer Property Development Property Services Property development for sale: Property and Asset Management − Single detached house Property Brokerage Services − Townhouse Property Sales Management − Condominium Property Development Consultancy Property de
Slide 6: Diversified earnings base with portfolios in all market segments
Diversified earnings base with portfolios in all market segments Price Range % of Total Revenue Single-detached house | Condominium | Townhouse (THB Million) by Segmentation Segment A 15-41 10% Right product mix that meets 5-15 housing demand, with a strong Segment B 70% focus on the fast 3-5 growin
Slide 7: Market Leader with growing market share
Market Leader with growing market share Market share 15% One of Thailand’s largest property developer with the growing market share 38% Largest developer of detached housing and Others 15% condominiums Land & Houses 16,605 residential units sold since 2003 18 projects with project value of THB 21 bi
Slide 8: Highest presales backlog in the market
Highest presales backlog in the market (91% secured revenue in 2009) 19,125 8,949 6,547 3,629 20,000 3,629 15,000 Condominium 12,860 5,051 THB Million Townhouse 10,000 4,180 Single-detached House 5,000 2,537 1,847 690 Note: 1 As of 19 October 2009. 3,728 2,922 806 Company estimates Presales 2009(F)
Slide 9: Thailand's largest property management, brokerage & sales management firm
Thailand’s largest property management, brokerage & sales management firm 200 buildings, nearly 70 million square feet under management Property Commercial, residential, institutional, management hospitality 50,000 residents and commercial tenants Fully- integrated services Nearly THB 76 billion in
Slide 10: Section 2: Property Market Outlook
SECTION 2 Property Market Outlook 9
Slide 11: Improving Property Demand & Consumer Confidence
Improving Property Demand & Consumer Confidence Tax incentives ; 4.2% Tax rate cut on Special Business Tax and Transfer fee. Low interest rate; Current Minimum Lending Rate (MLR) 5.85% Government Stimulus Package ; Spending on infrastructure projects. Higher Barrier-to-entry for small developers ; B
Slide 12: New Residential Registration Units
Well positioned to benefit from the current recovery in the Thai property market Recovering housing demand since May 2009 200,000 178,853 176,616 Condominium Townhouse 148,631 150,000 Single-detached house New Residential Registration Units 100,000 78,661 83,065 84,000 70,408 75,110 67,054 68,300 56
Slide 13: New residential supply has continued to shrink
New residential supply has continued to shrink Decreasing supply due to decreasing availability of credit for small developers. Sansiri is positioned to benefit from improved pricing power and growing market share 100 81 83 79 80 75 70 68 68 68 65 56 56 60 ’000 units 39 40 36 20 20 0 2003 2004 2005
Slide 14: Section 3: Competitive strengths
SECTION 3 Competitive strengths 13
Slide 15: Competitive strengths
Competitive strengths 1 2 3 4 Well positioned to Market leader with benefit from the Integrated business Resilient business growing market current recovery model model share in the Thai property market 5 6 7 Achieving Strong projects in economies of scale Experienced pipeline with and increasing man
Slide 16: Market leader with growing market share
1 Market leader with growing market share Large developers have gained market share 100% 6% 8% 10% AP 8% 9% 9% 9% 12% PS 80% 9% 11% 13% 10% QH 12% 14% 13% 15% based on revenue Market share 60% 28% 20% 22% 15% LH 40% Others2 38% 38% 36% 35% 20% 0% 2005 2006 2007 2008 Total Revenue by All Listed Devel
Slide 17: Fully integrated real estate company
2 Fully integrated real estate company Sansiri’s unique integrated business model allows it to capitalize upon existing databases and to position it to capitalize on the recovering Thai property market Property development In-house research Team Track record in property Dedicated in-house research d
Slide 18: Well positioned to benefit from the current recovery in the Thai property market
Well positioned to benefit from the current recovery 3 in the Thai property market (Low inventory with 67% of active projects sold) 55,253 60,000 Condominium Townhouse 24,077 Single-detached House 40,000 THB Million 8,355 18,422 891 20,000 22,821 3,603 234 5,189 9 9,630 648 Total Project Value Avail
Slide 19: Resilient business model despite economic slowdown and political uncertainty
Resilient business model despite economic slowdown 4 and political uncertainty Revenue EBIT 16,000 2006-08 CAGR: 15% 1,800 2006-08 CAGR: 42% 1,735 15,178 13,889 THB Million THB Million 14,000 1,500 12,000 11,482 1,200 1,141 860 10,000 900 8,000 600 2006 2007 2008 2006 2007 2008 Net income ROE 2006-0
Slide 20: Improving gross margins through brand premium and effective cost management
Improving gross margins through brand premium 5 and effective cost management 35% 32% 31% 30% 30% 29% 28% 2006 2007 2008 2009(F) 2010(F) Page 19
Slide 21: Improving gross margins through brand premium and effective cost management
Improving gross margins through brand premium 5 and effective cost management Average Gross Margin = 31% Average Gross Margin = 32% 100% 29% 30% 32% 30% 32% 34% 80% 3% 3% 3% 4% 2% 4% 60% 46% 46% 44% 47% 45% 45% 42% 40% 20% 22% 21% 20% 22% 21% 20% 0 TH SDH Condo TH SDH Condo 2009(F) 2010(F) Gross Mar
Slide 22: Increasing margins through brand premium
5 Increasing margins through brand premium A premier developer with strong brand recognition Best Developer in Thailand 2008 Euromoney, 2008 Commendation of Excellence, 2007 Best Residential Project of the Year, 2006 Asia Pacific Commercial Real Estate (APCRE) Sansiri remains the first and only Sout
Slide 23: Gaining economies of scale and increasing shareholder value
Gaining economies of scale and increasing 5 shareholder value Net income margin Gross margin from project 6 30 6 30 5 29 5 29 (%) (%) 4 28 4 28 3 27 2 26 2006 2007 2008 2006 2007 2008 Earnings per share SG&A per revenue 23 0.80 23 0.62 0.60 22 0.47 THB (%) 21 0.40 21 0.27 20 0.20 20 0.00 19 2006 200
Slide 24: Strong project in pipeline with highest presales backlog
6 Strong project in pipeline with highest presales backlog Available for sale No. of No. of Project Available Available for Projects Projects Units value for sale sale (As of 19 Oct 09) (MB) (MB) (Units) Single-detached House 18 4,157 22,821 9,630 1,991 Condominium 21 4,732 24,077 3,603 542 Townhous
Slide 25: Strong project in pipeline - 2009
6 Strong project in pipeline - 2009 Single-detached Number of Project Value Year 2009 Condominium Townhouse House Projects (THB Million) 1Q2009 9 13,242 2Q2009 2 2,737 3Q2009 4 2,601 4Q2009 3 2,501 6 4 8 18 Number of Projects 7,010 6,458 7,613 Project Value 21,081 (THB Million) Page 24
Slide 26: Experienced management team
7 Experienced management team Experienced management team with a proven track record in the Thai real estate sector and an average of more than 20 years of real estate experience Mr.Apichart Chutrakul Mr.Srettha Thavisin Mr.Wanchak Buranasiri Chief Executive Office / President / Senior Executive Vic
Slide 27: Section 3: Development and investment strategy
SECTION 3 Development and investment strategy 26
Slide 28: Development and investment Strategy
Development and investment Strategy Locations : CBD and along BTS sky train and MRT subway both existing and extension Construction: 14 - 16 months (Low-rise) Period 24 - 28 months (High-rise) Locations : Along outer-ring road within 30-kilometer radius from Central Business District (CBD) Construct
Sansiri Public Company — Investor Presentation (October 2009) on 6ix