century properties group, inc. · these materials have been prepared by century properties group...
TRANSCRIPT
CENTURY PROPERTIES GROUP, INC.Financial Year 2012 Results05 April 201305 April 2013
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 the accuracy, fairness or completeness of the information presented in these materialscompleteness of the information presented in these materials.
Neither the Company nor any of its affiliates, advisers or representatives accepts any liability whatsoever for any loss howsoever arising from any information presented in these materials. The information presented or contained in these materials is subject to change without notice and its
i t t d Th t i l t i t t t th t tit t f d l kiaccuracy is not guaranteed. These materials contain statements that constitute forward-looking statements. These statements include descriptions regarding the intent, belief or current expectations of Century or its officers with respect to the consolidated results of operations and financial condition of Century. These statements can be recognized by the use of words such as "targets", "believes", "expects", "aims", "intends", "will", "may", "anticipates", "would", "plans", "could", "predicts", "projects", "estimates", "foresees," or words of similar meaning. Such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and actual results may differ from those in the forward-looking statements as a result of various factors and assumptions. Century has no obligation and does not undertake to revise forward-looking statements to reflect future events or circumstances.o c cu sta ces
Representative examples of these factors and assumptions include (without limitation) general industry and economic conditions, interest rate trends, cost of capital and capital availability, availability of real estate properties, competition from other companies and venues for sale of projects, shifts in customer demands customers and partners changes in operating expenses including employee wages
1
demands, customers and partners, changes in operating expenses, including employee wages, benefits and training, governmental and public policy changes and continued availability of financing in the amounts and the terms necessary to support future business.
CONTENTS
1 INTRODUCTION 1
2 BUSINESS OVERVIEW 4
3 FINANCIAL PERFORMANCE& CAPITAL MANAGEMENT 30& CAPITAL MANAGEMENT
4 2nd STAGE OF GROWTH 40
5 Q & A 46
INTRODUCTIONINTRODUCTION
BUSINESS OVERVIEWBUSINESS OVERVIEW
RESULTS OVERVIEW
Remarkable Growth Over The First Stage
PHP (M) FY 2010 FY 2011 FY 2012PHP (M) FY 2010 FY 2011 FY 2012Total Revenues 3,072 4,702 9,611
Net Income 180 866 1,844
Gross Profit Margin from Real Estate Development
37.1% 41.7% 44.5%
Net Income Margin 5.8% 18.4% 19.2%
ROE 6.6% 23.8% 29.3%
Net Debt / Equity 32% 12% 33%
5
CORPORATE STRUCTURE (1)
Public Century Properties, Inc. (“CPI”)
33.3% 66.7%
Company listed on Philippine
(“CPGI”)
SubsidiariesCentury City Development
Corporation Century Communities
Corporation Century Limitless
Corporation Century Properties
Management
Stock Exchange ( CPGI )
100% 100% 100% 100%
Subsidiaries(“CCDC”) (“CCC”) (“CLC”) (“CPMI”)
Target market Mixed-use development consisting of residential, retail, and medical facilities
Horizontal house and lot development
Mid-market / affordable high quality residential projects
Largest property management company in the Philippines, with 50 buildings comprising 2.3m sqm of floor area
Current projects Century City Canyon Ranch Azure, Acqua Property Management
sqm of floor area
6
(1) Pro forma for 800,000,000 shares from the Placement and Subscription Offering conducted during March 2013
Founders of CPG
Founders of CPG
Jose E.B. Antonio
Chief Executive Officer26 years with Century26 years with CenturyAteneo, Harvard OPM
7
Founders of CPG
Ricardo P. Cuerva
President of Century ProjectPresident of Century Project Management Construction
(CPMCC), Director26 years with Century
San Beda, Ateneo
8
Founders of CPG
Rafael G. Yaptinchay
Treasurer, DirectorTreasurer, Director26 years with Century
Ateneo, AIM
9
2nd Generation of CPG John Victor R. Antonio
Co-Chief Operating Officer14 years with the Companyy p yWharton BS & MBA
Projects:AzureAzureGramercy
Markets:Middle East, AsiaJose Marco R AntonioJose Marco R. Antonio
Co-Chief Operating Officer13 years with the CompanyWhartonBS & MBA
Projects:Knightsbridge, Canyon Ranch, Acqua Commonwealth
10
Acqua, Commonwealth
Markets:Europe, UK, Australia
2nd Generation of CPG
Jose Carlo R. Antonio
Chief Finance Officer6 ith th
Jose Roberto R. Antonio
Managing Director13 ith th C 6 years with the
CompanyWharton BS
13 years with the CompanyNorthwestern & StanfordMBA
Projects: jMilano & Trump
Markets: North America
11
Independent Directors
Washington Z. Sycip
Founder of the Asian Institute of Management and the founder of Sycip Gorres Velayo andSycip Gorres Velayo and Company.
12
Independent Directors
Monico V. Jacob
President and CEO of STI EducationPresident and CEO of STI Education Services Group, PhilPlans First Inc., and Philhealth Care Inc. Mr. Jacob was also the Chairman and CEO of the Philippine National Oil Company (“PNOC”) and all
f it b idi iof its subsidiaries.
13
> CENTURY CITY
14
LAUNCHED PROJECTS
16,688 16,901 17,000
17,500
Inventory Made Available for Sale (Php m)
14,693
,
14,500 15,000 15,500 16,000 16,500
,
I t M d A il bl f S l (U it )
13,500 14,000
,
2010 2011 2012
2,7013,134
3,545
3,000 3,500 4,000
Inventory Made Available for Sale (Units)
2,701
1,000 1,500 2,000 2,500 ,
15
-500
2010 2011 2012
> CENTURY CITY
The Gramercy Residences
Key Project Statistics
Launch and Completion Dates 2007 / 2012
Current Construction Status FinishedCurrent Construction Status Finished
Total Units 1,432
Total GFA With Parking (sqm) 121,595
Total Floors 74
Units Sold % (2011 / 2012) (1) 94% / 98%
16
( )
Average Contracted Price PSM 106,611
Current Price PSM 143,948
(1) % Sales based on updated unit count
> CENTURY CITY
The Knightsbridge Residences
Key Project Statistics
Launch and Completion Dates 2008 / 2013
Current Construction Status FinishingStageg
Total Units 1,328
Total GFA With Parking (sqm) 91,357
Total Floors 64
Units Sold% Units (2011 / 2012) (1) 98% / 98%
17
Average Contracted Price PSM 108,946
Current Price PSM 152,482
(1) % Sales based on updated unit count
> CENTURY CITY
Centuria Medical Makati
Key Project Statistics
Launch and Completion Dates 2010 / 2014
Current Construction Status 5th Floor
Total Units 553
Total GFA With Parking (sqm) 70,804
Total Floors 30
18
Units Sold % (2011 / 2012) (1) 76% / 84%
Average Contracted Price PSM 120,479
Current Price PSM 167,273
(1) % Sales based on updated unit count
> CENTURY CITY
The Milano ResidencesKey Project Statistics
Launch and Completion Dates 2010 / 2015
Current Construction Status 15th Floor
Total Units 465
Total GFA With Parking (sqm) 61,489
Total Floors 57
Units Sold % (2011 / 2012) (1) 58% / 87%
Average Contracted Price PSM 143,764
Current Price PSM 173,972
19(1) % Sales based on updated unit count
> CENTURY CITYThe Trump Tower Makati
Key Project Stats
Launch and Completion Dates 2011 / 2016
Current Construction Status BasementCompletion
Total Units 238
Total GFA With Parking (sqm) 54,898
Total Floors 56
Units Sold % (2011 / 2012) (1) 43% / 72%
20
Units Sold % (2011 / 2012) (1) 43% / 72%
Average Contracted Price PSM 181,681
Current Price PSM 235,836
(1) % Sales based on updated unit count
> CENTURY CITYThe Century City Mall
Key Project Stats
Launch and Completion Dates 2011 / 2013
Current Construction Status Finishing
Total GFA With Parking (sqm) 49,143
Total NFA (sqm) 17,000
21
Total Floors(1) 6
% Leased (2) 42%
(1) Inclusive of basement supermarket and roof deck(2) Based on Q1 2013 statistics
> CENTURY CITY
LOT 3 and LOT 5 at Century City
Key Project Stats Lot 3 Lot 5 Total
Planned GFA
3
Planned GFA (in sqm, excluding parking)
63,320 68,513 131,833
Product Offering
Office (For Sale and/or For
Lease)
Luxury Residential and Office
5
Lease)
22
KALAYAAN AVENUE
> ACQUA PRIVATE RESIDENCES
Key Project Stats Open for Sale Un-Launched Total
# of Buildings 5 1 6
Launch and Completion Dates 2011 to 2012 / 2015-18
Under Evaluation
N/A
Current Construction Status Various up to 24th floor N/A N/ACurrent Construction Status Various, up to 24th floor N/A N/A
Total Units 2,859 202 3,061
Total GFA (sqm) 189,776 24,004 213,780
Total Floors Between 42 to 46 40 N/A
Units Sold % (2011 / 2012) (1) 50% / 84% 0% 79%
23
( )
Average Contracted Price PSM 119,951 N/A N/A
Current Price PSM 156,303 N/A N/A
(1) % Sales based on updated unit count
> AZURE URBAN RESORT RESIDENCES
Key Project Stats Open for Sale Un-Launched Total
# of Buildings 7 2 9
Launch and Completion Dates 2009-12 / 2013-17 Under Evaluation N/A
Current Construction Status Various, Up to Finishing Stage N/A N/A
Total Units 4,031 971 5,002
Total GFA (sqm) 251,237 65,906 317,143
Total Floors 20 20 N/A
Units Sold % (2011 / 2012) (1) 65% / 96% N/A 77%
24
Sold Price PSM 94,255 N/A N/A
Current Price PSM 110,204 N/A N/A
(1) % Sales based on updated unit count
> THE RESIDENCES AT COMMONWEALTH BY CENTURY
Key Project Stats Open for Sale Un-Launched Total
# of Buildings 5 3 8
Launch and Completion Dates 2012 / 2015-17 Under Evaluation N/A
Current Construction Status Land Development N/A N/A
Total Units 1,515 1,675 3,190
Total GFA (sqm) 95,794 91,060 186,854
Total Floors Between 11 to 22 22 N/A
Units Sold % (2011 / 2012) (1) N/A / 92% N/A 44%
25
Units Sold % (2011 / 2012) (1) N/A / 92% N/A 44%
Sold Price PSM / Current Price PSM 94,847 N/A N/A
Current Price PSM 93,799 N/A N/A
(1) % Sales based on updated unit count
> CANYON RANCH
Key Project Stats
Launch and Completion Dates 2007 / on-going
Current Construction Status 784 completed homes
Total Units 949
Total GFA (sqm) 282,569
Units Sold % (2011 / 2012) 96% / 95%
26
Units Sold % (2011 / 2012) 96% / 95%
Average Contracted Price PSM
18,389
Current Price PSM 24,896
CONSTRUCTION PROGRESS
• 6 buildings with 4,649 units, 375,093 sqm GFA / 185,096 sqm of net saleable area, plus a retail mall and urban beach club to be delivered in the next 12 monthsTh G R id i f ll l t d d t d i D b 2012• The Gramercy Residences is fully completed and turned over in December 2012
• Construction works are on schedule for all projects
P i
Gramercy KnightsbridgeRetail Mall
Rio(Azure 1)
Santorini(Azure 2)
St. Tropez(Azure 3)
Paris Hilton BeachClub Total
Launch Date: 2007 2008 2011 2011 2011 2011 N/A
No. of Units 1,432 1,328 N/A 756 553 580 N/A 4,649
Expected Delivered Date:
Dec-122012
Dec-132013
Q42013 Q3 2013 Q3 2013
Q42013
Q42013
GFA (sqm) 121,595 91,357 49,143 40,092 34,627 35,029 3,250 375,093
NFA (sqm) 62,555 43,171 17,000 24,156 19,107 19,107 N/A 185,096
Total Sales (Php bn) 7.1 5.1 N/A 2.1 1.7 1.9 N/A P17.9
Percent Sales 98% 96% N/A 96% 99% 99% N/A 98%
Current Average S 143 948 152 482 N/A 100 346 102 970 103 165 N/A
27
Selling Price 143,948 152,482 N/A 100,346 102,970 103,165 N/A
FORT BONIFACIO, GLOBAL CITY
BONIFACIO HIGHSTREETBONIFACIO
HIGHSTREET
SHANGRI-LASHANGRI-LA
THE MINDMUSEUMTHE MINDMUSEUM
Project Location: 27th Street at 3rd & 4th Avenue
Land Size (sqm) 3,268
28
Total Planned GFA (sqm)(excluding parking) 29,560
Novaliches, Quezon City
Commonwealth, Quezon City
Acqua, Mandaluyoung City
Century City, Makati Cit
Fort Bonifacio Global CityFort Bonifacio, Global City
Azure, Paranaque City
Canyon Ranch, Cavite
Batulao, Batangas
29
g
FINANCIAL PERFORMANCEFINANCIAL PERFORMANCEAND CAPITAL MANAGEMENT
Financial Performance And Capital Management
Key Income Statement Details
Total revenues (Php m) Gross profit from real estate development (Php m)
37 42 45Margin (%) 37 42 45Margin (%)
3,072 4,702
9,611
4,000 6,000 8,000
10,000 12,000
9941,751
3,962
2,000 3,000 4,000 5,000
EBITDA1 (Php m) Profit After Tax (Php m)
0 2,000
2010 2011 2012
994
0 1,000
2010 2011 2012
12 29 27Margin (%) 6 18 19Margin (%)
2,583
2,000 2,500 3,000 1,844
1,500
2,000
340
1,353
0 500
1,000 1,500
2010 2011 2012
180
866
0
500
1,000
2010 2011 2012
31
2010 2011 2012
Financial Performance And Capital Management
Key Balance Sheet DetailsCash and cash equivalents (Php m) Equity (Php m)
283367
902
400
600
800
1,000
2,950 4,332
8,266
4,000
6,000
8,000
10,000
283
0
200
2010 2011 2012
0
2,000
2010 2011 2012
Total Debt (Php m) Net Debt (Php m)
3,660
3,000
4,000 2,758
1 5002,000 2,500 3,000
1,226 883
0
1,000
2,000
2010 2011 2012
943 516
0 500
1,000 1,500
2010 2011 2012
32
Financial Performance And Capital Management
Key Credit StatisticsNet Debt / EBITDA Net Debt / Equity
33%2.8
1.1 1 0
1.5
2.0
2.5
3.0 32%
12%
33%
15%20%25%30%35%
0.4
-
0.5
1.0
2010 2011 2012
Approved Credit Facilities (Php m)
0%5%
10%
2010 2011 2012
Cost of Debt
6,571
6,000 7,000
Approved Credit Facilities (Php m)
9.5% 8.9%7.5%
7 5%
10.0%
3 3 11Number of Banks
1,695 2,395
1,000 2,000 3,000 4,000 5,000
2.5%
5.0%
7.5%
33
0 2010 2011 2012
0.0%2010 2011 2012
Financial Performance And Capital Management
Diversified FY 2012 Pre-Sales16.6% Growth Over FY 2011, and 107.0% of FY 2012 Guidance
Luxury24%
FY 2012 By Product: P21.4B TotalPre-Sales
18,367
21,407
20,000
25,000
Affordable43%
8,023 10,000
15,000
Middle Income
-
5,000
2010 2011 2012
Income33%
34
Note: Luxury is defined as (over P7M TCP). Middle Income is defined as between P3.5M to P7 TCP. Affordable is Azure and Commowealth is between P1.5M to P3.5M TCP.
Financial Performance & Capital Management
FY 2012 pre-salesIndustry Leading International Platform and Balanced Product Mix
By Location: P21.4B Total Peso Value Pre-Sold (Peso in billons): P21.4B
OthersMiddle East
5%
Philippines26%
Philippines26%
Europe
United Kingdom
6%
6%5%
Europe12%
International74% Asia
30%
North America
15%
35
Financial Performance & Capital Management
Balanced Portfolio of Products
Sold Inventory (Peso in Billions) Unsold Inventory (Peso in Billions)
Luxury15%
Luxury14%
Affordable33%
Affordable
Middle Income
34%
Affordable52%
Middle Income
52%
36
Note: Luxury is defined as (over P7M TCP). Middle Income is defined as between P3.5M to P7 TCP. Affordable is Azure and Commowealth is between P1.5M to P3.5M TCP.
Financial Performance & Capital Management
Prudent Launches Mitigating Inventory Buildup
Pre-Sales as Percentage of Inventory Made Available for Sale Total Units Opened for Sale as of FY 2012: 13,370g y
110%
127%
100%
120%
140%
p ,
Unsold, 8%
55%60%
80%
100%
0%
20%
40%
Sold, 92%
2010 2011 2012
37
Financial Performance And Capital Management: CPMI
Largest Independent Property Manager with 51 Buildings Totaling 2.3M sqm under Management
Total Revenues Php (m)
No. of projects GFA (‘000 sqm)
Residential 20 1,018
Commercial 31 1,286
Total 51 2 304 172
192
222
200
250
Total 51 2,304
Notable Projects Under Management, with 80%of contracts with 3rd parties 100
150
Asian Development Bank
Makati Medical Center
Pacific Star Building
50
Globe Telecom Plaza (Cebu, Mandaluyong, Makati)
PNB Building
BPI Buendia Center
0 2010 2011 2012
38
FINANCIAL PERFORMANCE AND CAPITAL MANAGEMENTRisks & Mitigants
C t P i % f 1997 P i ( 3)Current Prices as % of 1997 Prices( 3)
57%
50%
60%
Projected Equity Collected Before Turnover (1)
Gramercy (2) 68%
34%
40%
Knightsbridge 50%
Milano, Trump 40% to 50%
20%
30%
Azure and Acqua 30% to 35%
Commonwealth 20%
0%
10%
Land Value Residential Units
39
Land Value Residential Units
(1) Reflects % of contract price collected prior to unit turnover.(2) Includes proceeds from early collection of turnover balances from mortgage proceeds. (3) Per BPI Asset Management and Trust Group (CBRE Article dated November 8, 2012). Based on real terms.
2ND STAGE2ND STAGE OF GROWTH
2ND STAGE OF GROWTH
2nd Stage of Growth from
2013 t 2015Financial
Aspirations
• P30 billion of
The
Essentials
1. Leadership
2013 to 2015:
• P30 billion of
pre-sales by
2015
• P3B of net
1. Leadership
2. Innovation
3. Sustainability
4. Exposure • P3B of net
income by
2015
posu e
1st Stage of Transformation
from 2010 to 2012:
With a CAGR a pre-sales, revenue and net
41
income CAGR of 63% / 77% / 221%
respectively
2ND STAGE OF GROWTH
Sources for Pre-Sales
Estimated Sales Value (Peso in Billions)E i ti P j t L h d (U S ld) d U L h d P j t 40Existing Projects: Launched (Un-Sold) and Un-Launched Projects 40
Landbank 70
Total 110B
75% 81%
94%
80%
90%
100%
800 000
900,000
1,000,000
Sources for Net Income
40% 48%
59%
40%
50%
60%
70%
80%
400,000
500,000
600,000
700,000
800,000
8%
27% 27% 27%
0%
10%
20%
30%
40%
0
100,000
200,000
300,000
400,000
3 3 4 4 5 5 6 6 7 7
42
1H 201
3
2H 201
3
1H 201
4
2H 201
4
1H 201
5
2H 201
5
1H 201
6
2H 201
6
1H 201
7
2H 201
7
Period
2ND STAGE OF GROWTH
Leadership: Sales Distribution and Human Capital
2010 2011 20122010 2011 2012
International Sales Offices (including of affiliates and partners)
4 31 52
Revenue Generating Heads 0 1 3
Innovation: Co-Branding Agreements
2010 2011 2012
g g
43
2ND STAGE OF GROWTH
Sustainability: Replenish Landbank and Platform for Recurring IncomeGFA Excluding
ParkingParking (in sqm)
Retail Mall, Century City 31,974
Centuria, Century City (1) 8,035
Lot 3 Century City (1) 31 660
March 2013 Equity Offering
Transaction Placement and Subscription Offering
Lot 3, Century City ( ) 31,660
Lot 5, Century City (1) 15,416
27th Street at 3rd and 4th Avenue, Fort (2) 14,484
Total 101,569
Shares Sold 800,000,000
Gross Proceeds Raised 1,640,000,000
Use of Proceeds Replenish Landbank
Exposure: Focus on Capital Markets2012 2013
Broker Coverage 2 52011(3) 2012 2013 Total
Equity Capital P1 6B P2 3B P1 6B P5 6B
(1) Based on projected area that will be kept by CPGI for lease and is subject to change
Broker Coverage 2 5
Average Daily Trading (Value) (4) (5) 7.9M 45.8MEquity Capital P1.6B P2.3B P1.6B P5.6B
44
(1) Based on projected area that will be kept by CPGI for lease, and is subject to change(2) CPGI’s equity share, net of equity partner (3) Represents APG’s investment via convertible bond that has been converted to common equity(4) From Bloomberg: Based on February 2012 to December 2012, and January 2013 to March 2013 dates (5) Represents average daily trading value, excluding 1,333,333,333 Placement Subscription on February 2012, and 800,000,000 Placement and Subscription on March 2013
2ND STAGE OF GROWTH
45
Q & AQ & A