Pruksa Real Estate Pcl. 17 March 2011

Transcription

1 Pruksa Real Estate Pcl. 17 March

2 Contents Section 1 : Company Highlights & Advantages Section 2 : Strategic Planning & Product Performance Section 3 : Financial Performance 2

3 Corporate Vision and Goals Vision Goals Pruksa is one of the top ten residential real estate companies in Asia focusing in World Class Quality Management with strong fundamental and sustainable growth. We maximize customers and employees satisfaction and returns to shareholders and uphold the social responsibilities in all the countries we do business in. Be one of the top ten residential developers in Asia Generate at least 25% per year revenue growth Generate at least 18% net margin Revenue hit 100,000 million Baht by

4 A Successful Road Map 20 April 1993 Pruksa Real Estate founded by K.Thongma 2010 Still # 1 in Thailand Presale THB bn Revenue THB 23.4 bn 2010 Upgraded to be A by TRIS 2009 # 1 in Thailand Presale - THB 23 bn Revenue - THB 19 bn 2008 Presale - THB 16 bn Dec 2005 Registered as a Public Company Limited and listed on SET New Precast Factory adds another 430 house / mo Launched Internationnal booking in Maldive, India 2007 First condominium transferring 2006 Implement SBU strategy in organization 2004 Built Precast Concrete Factory a new construction technology in Thailand 260 houses / mo. 4

5 Distinguished Property Developer Distinguished Production Proven right and unique business model providing competitive advantages Being an integrated developer, we control costs, time, qualified material with no mark-up paid to main contractors. Construction time for low-rise = days. Business cycle competitive advantage 209 days in 2005 / 111 days in 2008 / 91 days in 2009 / ~ 115 days in 2010 Wide Product Coverage (area, type, design and price) High GM, Fast growth High Gross margin of 38 % in % Asset Turnover in 2009, 88% in 2010 Strong growth in asset, triple from 2007 to Bt. 34 billion in 2010 Healthy Financial Condition during growth On-going Staff Dev. Continuous product Development to meet Real Demand Divide PS into Special Business Unit to allow effective Brand Management on its own Diversify SBU strategic plan including International business to support long term growth. Strong team with company s culture to promote on-going development 5

6 4 Competitive Strengths 1) Unique Business Model Creating Strong Barrier to Entry 2) Dominant Player in large Real Demand Market Segment 3) Strong Platform and Strategy to capture Growth 4) FAST growth, HIGH Asset Turnover SHORT Cash Cycle 6

7 PS Unique Business Model Uniqueness : Right / Mass Production at low cost thus barrier to entry Integrated Developer (Low Rise+ High Rise) Organization Structure Developer +Contractor +Manufacturer Customer Value Product/Project/Service +Cost Leadership +Price Leadership Modern Trade Developer (Low Rise : TH, SDH) Business Process Positive Cash Flow Unlimited Business Expansion Barriers To Entry To be No.1 Developer Portfolio Management (High Rise : Condominium) Catch up New Lifestyle High Working Capital Long-Term Growth Effective Integration leads to Penetration Pricing Possibility with Competitive Customer Value Town House Competitive Pricing Model & Good Customer Value Single-Detached House Competitive Pricing Model & Good Customer Value Condominium Competitive Pricing Model & Good Customer Value 7

8 Special Technology & Mass Production Being a technology leader and market leader has enabled Pruksa to have mass production capability To reduce production time and number of skilled labour which leads to cost efficiency To produce consistent and high quality products 8

9 Tunnel System: for TH Construction 9

10 Precast Factory & advantages Precise and sustainable quality control Minimum material and product waste Shorten production period Facilitate and speed up erection at site Faster handover time to customer Reduce labour cost Minimum labor Less dependence on skilled labor Continuous production in all season Flexible product range Able to control pollution 10

11 All plant summary Total 690 Units / month Plant Production Line Output Expected Capacity / Month PCF 1 (Carrousel I) Semi Automated Carrousel System House Wall 76,000 square metre (gross area) equiv.to 260 house unit PCF 2 (Fence Factory) Fixed Mould System House Fence 2,600 cubic metre or equiv.to 1,200 house fence PCF 3 (Slab & Special Element Factory) Fixed Mould System Slab & Special Element for House 4,800 cubic metre or equiv. to 690 house unit PCF 4 (Condo & Façade Factory) Fixed Mould System -Condominium wall and Façade -Townhouse Facade 16,000 square metre or equiv.to 320 units 2,000 square metre or eqiv.to 900 house unit PCF 5 (Carrousel II) Fully automated Carrousel System House Wall 126,000 square metre (gross area) equiv. to 430 house unit 11

12 Dominance in Large & Real Demand market segment Market Access- Large & Real Demand market segment 12

13 Unit booked and Transferred 20,000 15,000 10,000 5, ,000 5,000 0 TH Booking SDH Booking CD Booking Maldives CD India SDH, TH 5, ,060 9, , , ,089 12,100 1,399 2,364 8,337 5,387 6,119 5,191 1,391 4,168 1, , ,316 3,454 3,198 2,667 20,865 5,368 2,660 12, Q1'10 Q2'10 Q3'10 Q4' , , ,396 5, , ,668 6,824 11,249 1,728 1,870 7,651 Q4 10 : Low-rise Highest Transfer Ever CD transfer SDH transfer TH transfer 3,372 3, , ,096 2,360 1,703 3, ,991 12, Q1'10 Q2'10 Q3'10 Q4' ,283 2,416 9,150 13

14 New House Registration & PS transfer 150, ,355 Tot. new houses registered 117,937 Built by developers 100,000 79,757 PS unit transferred 75,530 85,579 94,977 75, ,152 82,455 61,562 50,000 50,808 50,189 6,568 7,074 8,913 11,249 12,849 0 Bubble econ. '97 '06 '07 '08 '09 '10 14

15 Dominant in real demand Segment Highest Unit Market Share (houses built by developers) 30% 20% 10% PS 12,849 / total 82,455 units 14% 15% 13% 14% 13% 16% 100% 80% 60% 40% PS 9,150 / total 13,827 units 48% 42% 35% 34% 71% 66% 0% '05 '06 '07 '08 '09 '10 20% 0% '05 '06 ' 07 ' 08 '09 '10 50% 40% PS 2,416 / total 11,461 units 30% 17% 21% 20% 12% 7% 9% 4% 10% 0% '05 '06 '07 '08 '09 '10 20% 15% 10% 5% 0% PS 1,283 / total 57,167 units 0.2% 1.2% 3.2% 2.2% ' 07 ' 08 '09 '

16 Solid Platform and Strategy to capture Growth Rapid growth of city CD / city TH 1) Maximize Market / Value Share of TH by Expanding into City TH Segment/ New Coverage Areas (Push Market Growth by Expanding new TH Segment) 2) Focus on Growing Revenue from Medium- priced SDH/Medium-high high-priced SDH by Expanding new SDH Segment 3) Expand into Condominium Segment with Optimum Risks 16

17 Fast growth, High Asset T/O Million Baht 35,000 30,000 Assets Liabilities Equity 34,211 25,000 20,000 15,000 10,000 11,095 8,206 18,871 16,292 13,023 10,110 6,182 5,848 18,948 15,263 5,000 2, Avg. Asset Turnover 2009 Avg. Return on Asset 2010 Avg. Return on Equity Net Profit Margin Dividend Payout Ratio 100% 108% 89% 95% 88% 50% 0% 17% 13% 14% 37% 31% 26% 31% 17% 19% 18% 19% 34% 25% 13% % 32% 17

18 Contents Section 1 : Company Highlights & Advantages Section 2 : Strategic Planning & Product Section 3 : Financial Performance 18

19 Strategic Direction PS Business Platform PS Brands & Locations Modified & Additional Revenue Platform in New Business Per Unit Price (M ) Zone Sub Urban Connecting In-Town CBD (Near MRT/BTS/Density Area) Upcountry International Storey Condo Ayutthaya India: Storey TH Condo: MB BOI -Condo Bangalor e Storey Semi-DH 2-Storey TH MB MB MB MB Condo MB Nakornpathom Maldives: Hulhumale Storey SDH Re-Design & 2-Storey Re- SDH Location 2-Storey SDH Mixed Used TH+Semi-DH +SDH 2-Storey TH M 2-Storey SDH : MB 2-3 Storey TH M 2- Storey TH M 3 Storey TH : 3-5 M /New Brand New Business/ SDH 5-10 MB Condo MB. Condo MB Condo MB Samutsakorn Chonburi Niche market theme Condo MB Phuket Vietnam: Hai Phong 19

20 Brand & Segmentation of Pruksa: Townhouses Logo Brand Segment Price (mil. Bt) The Plant Citi Stylish Middle income Storey / unit Pruksa Town Stylish Middle income 2 Storey / unit The Connect Middle-low low income / unit Pruksa Ville Low income / unit Baan Pruksa Low income / unit 2010 Urbano Stylish Middle income 2 Storey / unit Silvana (in Bangalore) Middle income 2.5 / unit 20

21 Logo Brand & Segmentation : Single Detached Houses Brand Segment Price (mil. Bt) Passorn Middle-High income / unit The Plant Middle income (Stylish SDH) / unit Pruksa Village Middle-low low income / unit Pruksa Nara Middle-low low income / unit Silvana (in Bangalore) Middle income 3.2 / unit Pruksa Puri Middle income / unit Building process with precast 21

22 Brand & Segmentation : Condominiums Logo Brand Segment Price (mil. Baht) IVY The Seed Be you The Tree City Ville Condo Middle-High income MBt / unit Middle income (Stylish Condo) MBt / unit Middle-Low income MBt / unit Middle -Low income MBt / unit Low income MBt / unit Urbano Condo Chapter One Middle-High income Middle-Low income MBt / unit MBt / unit Condolette Middle-high income MBt / unit 624 Condolette FUSE Coral Ville (Maldives) Middle-Low income MBt / unit Middle-High income MBt / unit Middle-High income Equiv. to MBt / unit 22

23 Strong Team Synergy Highly Skilled & Experienced Management Team in each Market Segment Interchangeable Management Team CEO Business Development Team CBO1 CBO2 CBO3 Land Acquisitions, Purchasing SBU PK SBU PKV SBU Connect SBU PV1 SBU PS SBU PT SBU CD1 SBU CD2 IB : VN SBU CD3 SBU CD4 SBU SD3 IB : India Maldives Townhouse Single Detached H. Condo. IB Condo. SDH IB Supporting Team COO CFRO CSO PRECAST HRM R & D IT A/C, Fin. HRD Kaysorn Construction Co. Fin. Planning Business Support IR. Business Process 23

24 Section 1 : Company Highlights Section 2 : Strategic Planning & Product Performance Section 3 : Financial Performance 24

25 2011 Presale Target 29,000 MB. 42,000 MB. Growth +8% 100% 38,753 MB. 100% Target +34% India : 2,515 MB. Maldive : 1,030 MB. Vietnam : 1,000 MB. 13,646 MB. Growth +19% CD : 3,985 SDH : 3,597 16,188 MB. CD : 3,677 SDH : 5,097 TH : 6,064 TH : 7,414 Growth +41% 22,774 MB. CD : 4,721 SDH : 6,448 TH : 11,604 Growth +27% Inter : 2,000 CD : 6,447 SDH : 9,020 TH : 11,533 Growth +70% 2% Inter : % CD : 12,342 Growth +161% SDH : 8,679 TH : 17,034 44% Growth +47% Inter : 4,545 23% CD : 9,462 Growth -23% SDH : 13,543 32% TH : 14,404 34% (Actual) 2010 (Target) 2010 (Actual) Target % Growth +35% 11% Growth +551% Growth +56% Growth -15% 25

26 2011 Revenue Target Growth +37% 32,000 MB. 100% India : 660MB. Maldive : 982 MB. Vietnam : 800 MB. 9,093 MB. Growth +43% Other : 38 CD : 43 13,034 MB. Growth +46% Other : 65 CD : 563 SDH : 4,969 24,000 MB. 23,280 MB. Target -3% 100% 19,033 MB. Growth +22% Inter :, 1,400 Growth +26% CD : 3,430 CD : 3,608 Other : 90 15% Growth +0.33% CD : 3,596 SDH : 7,672 SDH : 8,362 33% SDH : 5,528 Growth +38% Inter : 2,442 8% CD : 4,226 13% Growth +17% SDH : 12,292 38% Growth +59% SDH : 3,862 TH : 5,149 TH : 7,536 TH : 9,820 TH : 10,808 TH : 11,949 52% Growth +23% TH : 13,040 41% Growth +9% (Target) 2010 Actual Target

27 International : India overview Thane: Mumbai 50 : 50 On going and upcoming projects Bangalore 100% 27

28 India Updates Bangalore 100% own - Type: TH, SDH (~ 438 units) - Project Value: Bt. 1,600 m - 1st phase Soft launched in Nov. 10 ~ Bt. 500 m - As of Feb 16. the accum. booking hits 56 units or ~ Bt m - Grand opening will be in Sep 11 when all facility is ready. Mumbai 50% JV with SOHAM Group of Companies - In Pimplas Village, Thane 300 units - Type: TH, SDH, Twin houses for middle income - Project Value ~ Bt. 1,500 m on 25 Acres (from total 150 Acres) - 1 st phase to open by

29 Bangalore Construction Updates Townhouse 29

30 Maldives and Vietnam Maldives -80% JV with HDC - 5 storey CD in Hulhumale totaling Bt. 3,500 m. - 1st phase ~ Bt. 595 m of which 98% pre-sales - The first 2 buildings expected to deliver by May 11-2nd phase will be launched in Q3 11 Vietnam - 85% JV Agreement with Hoang Huy Service Investment Co. - Right of land usage already transferred to JV co. Land purchasing is in process. - Condo in Hai Phong. Total Project ~ Bt. 3,900 m - First phase of Bt. 500 m to open for booking by

31 Maldives Phase # 1 Progress 31

32 Plan for 78 Projects in TH SDH CD International TOTAL new project open '07 '08 '09 '10 Plan '10 Actual '11 Plan 32

33 Active Project 31-Jan-11 Existing Projects No. of Pro jects Total Project Value Sold Unsold Units MBt Units MBt Units MBt , ,057 33,466 62,673 22,918 50,400 Bann Pruksa 26 18,901 20,526 12,354 12,375 6,547 8,152 Pruksa Ville , , ,356 The Connect 10 3,973 8,421 1,901 3,748 2,072 4,674 Passorn , , ,632 The Plant 6 1,437 6,023 1,006 4, ,800 Pruksa Village , , ,862 Pruksa Town 9 2,940 6,506 1,159 2,372 1,336 3,149 Pruksa Puri , ,478 IVY , , ,051 The Tree , , Urbano , , ,366 Chapter One , , ,806 The Seed 7 2,162 7,378 1,892 6, ,070 Condolette , , BE YOU FUSE , , ,534 CORAL VILL(Maldives) 1 1,120 3, ,926 SILVANA BANGALORE (India) , ,456

34 Increased Leverage to finance growing business Million Baht 40,000 Times , ,000 20,000 10, ,871 16, ,023 18,948 11,095 10,110 8,206 15,263 13, , ,848 2, ,600 1, ,100 0 '07 '08 '09 '10 Asset Liabilities Equity Interest Bearing debt Liabilities : E Int. bearing debt : E 34

35 Total property development projects Million Bt. 30,000 Construct. Materials Projects developing Sample houses Land,House for sale 27,961 25,000 Land under Dev. Grand total 9,026 20,000 2,045 15,000 12,789 13,373 1,017 2,248 10,000 5,000 8,253 1,355 1,834 2,315 1,864 8,634 8,679 15, , '07 '08 '09 '10 35

36 Project under Development Million Bt. 18,000 Land Land Dev. 16,000 14,000 Construction Overhead : construction Projects under dev. Infrastructure Interest 15, ,687 12, ,000 8,000 8,634 8, ,000 4,000 2,000 4, ,774 1,996 1, ,355 5,904 12,256 0 '07 '08 '09 '10 36

37 % Gross Margin sustain while net profit drop Million Baht 10,000 8,000 35% 38% 7,284 38% 8,846 38% Percent 40% 30% 6,000 4,000 2,000 3,136 14% 1,302 4,883 18% 2,373 19% 3,622 3,488 15% 20% 10% 0 '07 '08 '09 '10 0% Gross Margin (m Baht) Net Margin (m Baht) Gross Margin (%) Net Margin (%) 37

38 Per share & Return performance Bt. / share (bar graph) MKT. Cap in period end Dividend per share Book Value per share Earning per share Ending PS price in SET '04 '05 '06 '07 '08 '09 '10 45,000 40,000 35,000 30,000 25,000 20,000 15,000 10,000 5,000 0 Subject to shareholders Meeting - Apr

39 Disclaimers : This presentation material has been prepared solely for informational purposes only. Pruksa Real Estate Pcl. (PS) is furnishing it solely for use by prospective investors / analysts in the proposed event. PS makes no representations or warranties as to the accuracy or completeness of such information. By accepting this material each recipient agrees that PS shall not have any liability for any representations (express or implied) contained in, or for any omissions from this presentation. The information contained herein does not purport to be all-inclusive or to contain all of the Information that may be material to the recipient s decision. Each recipient of the information and data contained herein should perform its own independent investigation and analysis of the transaction and the creditworthiness of PS. Reference in this Disclaimer to this shall include references to the Appendices (if any) hereto. 39