L.P.N. Development Public Company Limited November 11, 2005

Transcription

1 L.P.N. Development Public Company Limited November 11, 2005

2 LPN s Investment Structure L.P.N. Development PCL. Medium to Medium-Low Income Residential Condominium Developer - 2 Town House Projects MB. - 3 Office Building Projects 2,710.0 MB Residential Condo Projects 21,670.0 MB. Total Projects value 25,200.0 MB % 99.88% 33.33% Pornsanti Co.,Ltd. Residential Condominium Developer - 1 Office Building Project MB. - 3 Residential Condo Projects 3,470.0 MB. Total Projects value 3,600.0 MB. Lumpini Property Management Co.,Ltd. Property Management Service - Construction Management - Brokerage Management - Building Management (1.0 million sq.m.) Grand Unity Development Co.,Ltd NPA-Residential Condominium Developer - 6 Residential Condo Projects 4,800.0 MB. Total Projects value 4,800.0 MB. 2

3 Summary of a Condo. market through 3Q 2005 The year 2005 has been an excellent year for L.P.N. Development PCL., ironically due to Thailand weak economy. During the second quarter, a rise in gasoline price was confirmed by Thai government as a permanent raise, causing high demand for a near Mass-Transit asset such as condominium. Later in the third quarter, the rise of the MLR rate has lowered a home buying power-topurchase; redirected many home-buyers decisions from buying an expensive home to buying medium price home instead. In addition, an expensive gasoline price also lowered power-to purchase as well. With higher transportation cost and a lower home buying budget, however, Bangkok unemployment rate is still very low (2%) L.P.N. Development PCL. Research & Development Division, believes that a demand for condominium is still very high and our sale performance should be strong throughout this year. On the supply side, the condominium sector also has shifted from high to lower price to catch up with the market demand. The trend of near mass transit project, however, remain the same from the year before. From the government data, L.P.N. Development PCL. is a current condominium market leader with a 32% (Condominium registration) market share. L.P.N. Development PCL. believes that our competitive advantage are still the strength in our project location, price, on-time construction, and building management. 3

4 0 ' # & ( 0 $ $ /! ) # & # $," Condominium Registration (BKK) UNITS 70,000 60,000 50,000 40,000 30,000 20,000 10, ,000-20,000 Previous cycle (Avg. GDP 2,500,000 MB) Approx. 20,000 units of new condominium demand p.a. New cycle Growth period % LPN , ,993 1,758 1,229 3,419 NHA ,500 2, ,066 2,108 3,164 1, , Others ,615 3,457 2, ,271 5,279 22,740 26,196 30,084 23,084 42,524 62,267 41,840 18,468 4,475 4,081 3,058 3,400 2,918 5,656 8,561 Growth (!! $ & (, + 3 " ( -, + * 2 ( $ ' ( ' $! " & - 1 ' +! " $ & +$ " +, ( & /", #. &, ( -, + * '" ( )! '! ( ' $! " % "! 4

5 Annual Condominium Registration A+ A C 20 % 5 % 17 % 15 % B+ 24 % 19 % Year C+ B (Sep) 2005 F BKK. (units) 4,676 6,885 7,521 11,980 L.P.N. (units) 1,758 1,229 2,463 3,419 L.P.N. s Share 38% 18% 32% * The graph indicates LPN Development PLC. is a market leader in Condominium market. 29% 5

6 Market Share by Condominium Registration AP 3 % Others 15 % Source : Land Department Total : 7,521 Units in 2005(Q3) L.P.N. 32 % Prayapanich Property 3 % SIRI + Plus 3% Hongtongland 3% LH 3% City Villa 7% Mr. Auppakit 4% Thanaland 4% Bangkok Thanakom 4% Sathorn - Chapraya 6% H.R.C. City 7% Bellepark Resident 6% * The graph indicates LPN Development PCL. is a market leader in Condominium market. 6

7 ( " ' 3 ' Market Gap ( 8,000,000 7,000,000 6,000,000 5,000,000 4,000,000 3,000,000 2,000,000 1,000, ,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 45,000 50,000 55,000 60,000 ( / 3 7

8 ( " ' 3 ' Future Market Gap ( 8,000,000 7,000,000 6,000,000 5,000,000 4,000,000 3,000,000 2,000,000 1,000, ,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 45,000 50,000 55,000 60,000 ( / 3 8

9 L.P.N. Development Public Company Limited L.P.N. s Business

10 L.P.N. s Business Opportunity Higher Customer Confidence Population and Life Style Trends Mass Transit Expansion Projects Higher Oil Price Traffic Jam Rental Amount equals Install Payment 10

11 L.P.N. s Direction in Focus Expand Strategy 11

12 Performance of Project Development Result of Cost leadership strategy and customer confidence Unit : Million Baht Revenue/sq.w. Profitability

13 L.P.N. s Development Model Linking all stand alone Projects to Community in the future Pilot Project New Location Expanded Project Expanded Project Expanded Project Pilot Stage Expanded Stage Expand to Hi-Density Out-skirt Location Mass Transit Speed Cost Leadership Product differentiation CRM Customer Base Customer Confidence 30%-50% Of Our Sales Volume Come From Our Existing Customer Base Ability to Expand Project Sizing and Lower MKT. Expenses Higher Project Revenue and More Profitability from Economy of Scale Sustainable Growth 13

14 L.P.N. s Projects Expansion in West North South CBD Base Location East 14

15 L.P.N. s Strategic Model Marketing Strategy Product Differentiation L.P.N. DESIGN FOCUS Middle Income Target Group New Family D I N K Cost Leadership Initiative & Creativity Reliable Strategic Alliance Collaboration to Achievement Speed Customer Focus Budget Awareness L.P.N. S 6 CORE COMPETENCIES 15

16 Moving to Small Size Township Established L.P.N. Diversity in project development Company listing on SET Economic crisis Turnaround period Medium rise Project Expand into small size township development 16

17 L.P.N. Development Public Company Limited Our Projects

18 1 of 3 Completed Projects in 2005 Lumpini Center Sukhumvit 77 Location Type : Sukhumvit 77 Rd. : Low Rise Building Project Value : 898 MB No. of Units : 872 Launching : 1Q, 04 Sales Status : 100% Pilot Project in Eastern BKK Handover and Realized : 1Q, 05 = 613 MB : 2Q, 05 = 205 MB : 3Q, 05 = 45 MB 18

19 2 of 3 Completed Projects in 2005 Lumpini Place Rama 3-River View Location : Rama 3 Rd. (opposite Montien Riverside Hotel) Type Project Value : First Mid Rise Building : 1,029 MB. No. of Units : 497 Launching : 1Q, 04 Sales Status : 100% Expanded Project on RAMA III Rd. Handover and Realized : 2Q, 05 = 507 MB 3Q, 05 = 423 MB 19

20 3 of 3 Completed Projects in 2005 Lumpini Ville Phahon-Suthisan Location Type : Saphankwai : Mid Rise Building Project Value : 1,406 MB No. of Units : 861 Launching : 3Q, 04 Sales Status : 100 % Handover and Realized : 3Q, 05 = 754 MB Pilot Project in Northern BKK 20

21 On-Going Project in Lumpini Ville Sukhumvit 77 Location Type : Sukhumvit 77 Rd. : Mid Rise Building Project Value : 1,545 MB No. of Units : 987 Launching : 4Q, 04 Sales Status : 78% Handover and Realized : ~ Q2, 06 - Q3, 06 Expanded Project in Eastern BKK 21

22 1 of 4 Projects Launched in 2005 Lumpini Center Happy Land Phase 5 Location Type : Happy Land 1 Rd. : Low Rise Building Project Value : 380 MB No. of Units : 442 Launching : 1Q, 05 Sales Status : 84% Handover and Realized : ~ Q1, 06 Expanded Project on Latphrao Rd. 22

23 2 of 4 Projects Launched in 2005 Lumpini Place Pinklao Location Type : Pinklao Rd. : Mid Rise Building Project Value : 1,098 MB No. of Units : 580 Launching : 1Q, 05 Sales Status : 100 % Handover and Realized : ~ 2Q, 06-4Q, 06 Pilot Project in Western BKK 23

24 3 of 4 Projects Launched in 2005 Lumpini Ville Cultural Center Location : Meng - Jai Intersection Project Value : 1,924 MB No. of Units : 1,324 Launching : 1Q,05-2Q, 05 Sales Status of D+E : 91% Sales Status of A,B+C : 72% Pilot Project (Small Size Township) Handover and Realized : ~ 3Q, 06-1Q, 07 24

25 4 of 4 Projects Launched in 2005 Lumpini Place Narathiwat-Chaophaya Location : Rama III-Narathiwatrat Rd. Project Value : 3,530 MB No. of Units : 1,306 Launching : 2Q, 05 Sales Status : 54% Handover and Realized : ~ 1Q,07-3Q, 07 Expanded Project On Rama III Rd. 25

26 L.P.N. Development Public Company Limited Financial Highlight Q3/2005

27 Total Revenue from Sales (9M 05) Project 3Q, 05 Units M 2Q, 05 Units M 1Q, 05 Units M Lumpini Center Sukhumvit Lumpini Place RM3-River View Lumpini Ville Phahol-Sutthisan Stock Total 714 1, Total 1,820 units or Baht 2, million 27

28 Summary of Project Launched in 2004 Project Units Project Value (MB) Sold Revenue Recognition 1. Lumpini Center Sukhumvit % Lumpini Place Rama 3 River View 497 1, % Lumpini Ville Phahol-Suthisan 861 1, % Lumpini Ville Sukhumvit ,545 78% 2006 Total 3,217 4,878 28

29 Project Launched in 2005 Project Units Project Value (MB) Sold Revenue Recognition Lumpini Center Happyland P % 2006 Lumpini Place Pinklao 580 1, % 2006 Lumpini Ville Cultural Center (D, E) % 2006 (A, B, C) 726 1,136 72% Lumpini Place Narathiwat- Chaophaya 1,306 3,530 54% 2007 Total 3,652 6,932 29

30 Sale Volume in 9M 05 Product Type Total (MB) % Total 6,

31 LPN s the 3Q and 9M 05 of Financial Analysis Item 3Q 05 Consolidated 3Q 04 %Change 9M 05 9M 04 %Change 1. Revenues from Sales (Million Baht) 1, , , , , , Revenue from Rent & Services and Management Fee (Million Baht) 1, , , , , , Gross Margin (G/P) on Sales (%) 34.22% (0.43%) 35.79% 34.74% 1.05% 4. G/P on Rent&Service (%) 28.53% 21.54% 6.99% 26.06% 24.72% 1.34% 5. G/P on Management Fee (%) 32.50% 24.57% 7.93% 51.57% 39.00% 12.57% 6. G/P on Rent&Services and Management Fee (Million Baht) % % 7. G/P on Rent&Service and Management Fee (%) 34.15% 34.29% (0.14%) 36.25% 34.82% 1.43% 8. Selling and Admin. Expenses (%) 8.69% 8.81% (0.12%) 10.86% 11.67% (0.81) 9. E.B.I.T. (Million Baht) % % 10. E.B.I.T. (%) 26.14% 25.99% 0.15% 25.85% 23.46% 2.39% 11. Net Profit (Million Baht) (10.12%) % 12. Net Profit (%) 18.42% 21.87% (3.45%) 17.00% 20.17% (3.17%) 13. Earning per share (Baht) (18.18%) (10.00) 14. Book value per share (Baht) (4.66%) (2.38%) 31

32 L.P.N. Development PCL. And its subsidiaries Comparison Profit and Loss Statement 3Q 05 Million Baht Higher than 3Q 04 : 27.96% Total Revenues (Accumulated) 2, , Quarter 32

33 L.P.N. Development PCL. And its subsidiaries Comparison Profit and Loss Statement 3Q/2005 Million Baht Higher than 3Q 04 : 7.86% Total Profit (Accumulated) Quarter 33

34 Project Revenue from Sales in Project Q1 Q2 Q3 Q4 Total Project Revenue in 2005fromSales in Lumpini Center Sukhumvit 77 / / / Lumpini Ville Phaol - Suthisan / / 1, Lumpini Place Rama 3 River View / / 1,029 Total ,222 3,333 Project Revenue in 2006fromSales in Lumpini Center Happyland P.5 / Lumpini ville Sukhumvit 77 / / 1, Lumpini Ville Cultural Center (Partial) / / 1, Lumpini Place Pinklao / / / 1,098 Total 4,510 Project Revenue in 2007fromSales in Lumpini Ville Cultural Center / Lumpini Place Naradhiwas Chaopraya / / / 3, Lumpini Place Pinklao II / / Lumpini Ville Pradipat (Partial) / / 1,463 Total 6,030 34

35 Property Market Share in 9M 05 Ranking Ranking

36 L.P.N. Development Public Company Limited Thank you for your kind attention