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1 Presentation to Analysts Q2 2012 August 15, 2012
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Presentation to Analysts Q2 2012 - Century Properties3 Executive Summary • Record Q2 and YTD 2012 Earnings • Q2 2012: P2.5B in revenue and P491M in net income, representing 146%

Mar 04, 2020

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Page 1: Presentation to Analysts Q2 2012 - Century Properties3 Executive Summary • Record Q2 and YTD 2012 Earnings • Q2 2012: P2.5B in revenue and P491M in net income, representing 146%

1

Presentation to Analysts Q2 2012 August 15, 2012

Page 2: Presentation to Analysts Q2 2012 - Century Properties3 Executive Summary • Record Q2 and YTD 2012 Earnings • Q2 2012: P2.5B in revenue and P491M in net income, representing 146%

2

Agenda

1. Executive Summary 2. Market Overview 3. Project Portfolio 4. Financial Statements 5. Pre-Sales 6. Project Update 7. Land Bank 8. Q&A

Executive Summary

Market Overview

Project Portfolio

Financial Statements Pre-Sales Project

Updates Land Bank Q&A

Page 3: Presentation to Analysts Q2 2012 - Century Properties3 Executive Summary • Record Q2 and YTD 2012 Earnings • Q2 2012: P2.5B in revenue and P491M in net income, representing 146%

3

Executive Summary • Record Q2 and YTD 2012 Earnings

• Q2 2012: P2.5B in revenue and P491M in net income, representing 146% and

27% growth YoY, respectively

• 1H 2012: P4.9B in revenue and P944M in net income, representing 133% and

90% growth YoY, respectively

• Continuing Pre-Sales Momentum

• Q2 2012: P5.4B of pre-sales, representing 11% growth YoY over P4.9B

• 1H 2012: P10.7B of pre-sales, representing 18% growth YoY over P9.0B

• Diversification Strategy

• Continuing diversification with 26% of sold units, increasing to 47% for unsold

units, and 36% on a total basis in the affordable market

• Diversification into commercial assets with 16,422 net leasable sqm in Century

City retail mall

Executive Summary

Market Overview

Project Portfolio

Financial Statements Pre-Sales Project

Updates Land Bank Q&A

Page 4: Presentation to Analysts Q2 2012 - Century Properties3 Executive Summary • Record Q2 and YTD 2012 Earnings • Q2 2012: P2.5B in revenue and P491M in net income, representing 146%

4

Market Overview

• The Current Interest Rate Environment Remains Favorable

• BSP cut benchmark interest rate in July to 3.75%, one of the lowest ever

• Inflation is forecasted to average 3-5% from 2012-2014 (BSP)

• This creates a favorable spread for real estate purchases, wherein buyers benefit from rising property prices

and rental income, while having a lower financing cost

Executive Summary

Market Overview

Project Portfolio

Financial Statements Pre-Sales Project

Updates Land Bank Q&A

• Continuous Shift to Condominiums

• Floods, preference for city living by OFWs, increase in VAT ceiling to P3.2M from P2.5M bodes

well for condominiums

Page 5: Presentation to Analysts Q2 2012 - Century Properties3 Executive Summary • Record Q2 and YTD 2012 Earnings • Q2 2012: P2.5B in revenue and P491M in net income, representing 146%

5

Product Portfolio: Continuous Effort to Diversify Into the Affordable Market

Executive Summary

Market Overview

Project Portfolio

Financial Statements Pre-Sales Project

Updates Land Bank Q&A

Note: A project is defined as Luxury, Middle Income and Affordable if the majority of the units in a project are over P7M, between P3.5M to P7M, and between P1.2M to P3.5M respectively.

26%

47% 36%

59% 26% 44%

15% 27% 20%

0%

50%

100%

Sold Inventory Unsold Inventory Total

LuxuryMiddle IncomeAffordable

Page 6: Presentation to Analysts Q2 2012 - Century Properties3 Executive Summary • Record Q2 and YTD 2012 Earnings • Q2 2012: P2.5B in revenue and P491M in net income, representing 146%

6

Financial Statements

Executive Summary

Market Overview

Project Portfolio

Financial Statements Pre-Sales Project

Updates Land Bank Q&A

Page 7: Presentation to Analysts Q2 2012 - Century Properties3 Executive Summary • Record Q2 and YTD 2012 Earnings • Q2 2012: P2.5B in revenue and P491M in net income, representing 146%

7

Significant Headroom to Increase Leverage, with Matched Funding

Executive Summary

Market Overview

Project Portfolio

Financial Statements Pre-Sales Project

Updates Land Bank Q&A

Audited UnauditedAmount in Millions 31-Dec-11 YTD 2012Cash and Cash Equivalents 367 657 Total Assets 10,029 14,053 Total Borrowings 883 1,409 Net Debt 516 752 Stockholder's Equity 4,332 7,376

20%

12%

19%

10%

0%

5%

10%

15%

20%

25%

Debt-to-Equity Ratio Net Debt-to-Equity Ratio

31-Dec-11 YTD 2012

Page 8: Presentation to Analysts Q2 2012 - Century Properties3 Executive Summary • Record Q2 and YTD 2012 Earnings • Q2 2012: P2.5B in revenue and P491M in net income, representing 146%

8

Q2 Net Income: 28% Growth YoY

Executive Summary

Market Overview

Project Portfolio

Financial Statements Pre-Sales Project

Updates Land Bank Q&A

Unaudited UnauditedAmount in Millions Q2 2011 Q2 2012 GrowthRevenueReal estate sales 839 2,267 Property management fee and other services 47 57 Interest and other income 112 134 Total Revenue 998 2,458 146%

Total Costs and Expenses 501 1,799 259%

Income Before Tax 497 660 33%

Provision for Income Tax 112 169

Net Income 385 491 28%

Page 9: Presentation to Analysts Q2 2012 - Century Properties3 Executive Summary • Record Q2 and YTD 2012 Earnings • Q2 2012: P2.5B in revenue and P491M in net income, representing 146%

9

YTD Net Income: 91% Growth YoY

Executive Summary

Market Overview

Project Portfolio

Financial Statements Pre-Sales Project

Updates Land Bank Q&A

Unaudited UnauditedAmount in Millions 1H 2011 1H 2012 GrowthRevenueReal estate sales 1,875 4,534 Property management fee and other services 96 110 Interest and other income 150 292 Total Revenue 2,120 4,936 133%

Total Costs and Expenses 1,466 3,651 149%

Income Before Tax 655 1,285 96%

Provision for Income Tax 160 341

Net Income 495 944 91%

Page 10: Presentation to Analysts Q2 2012 - Century Properties3 Executive Summary • Record Q2 and YTD 2012 Earnings • Q2 2012: P2.5B in revenue and P491M in net income, representing 146%

10

Margins and Returns

Executive Summary

Market Overview

Project Portfolio

Financial Statements Pre-Sales Project

Updates Land Bank Q&A

Note: A project is defined as Luxury, Middle Income and Affordable if the majority of the units in a project are over P7M, between P3.5M to P7M, and between P1.2M to P3.5M respectively.

45.7%

23.4%

42.7%

19.1%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

Gross Profit Margin Net Income Margin1H 2011 1H 2012

12.0%

32.3%

18.0%

41.7%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

Return on Assets Return on Equity1H 2011 1H 2012

96%

61%

4%

28%

0% 11%

0%

25%

50%

75%

100%

1H 2011 1H 2012

Real Estate Sales

Middle Income Affordable Luxury

Page 11: Presentation to Analysts Q2 2012 - Century Properties3 Executive Summary • Record Q2 and YTD 2012 Earnings • Q2 2012: P2.5B in revenue and P491M in net income, representing 146%

11

Pre-Sales

Executive Summary

Market Overview

Project Portfolio

Financial Statements Pre-Sales Project

Updates Land Bank Q&A

Page 12: Presentation to Analysts Q2 2012 - Century Properties3 Executive Summary • Record Q2 and YTD 2012 Earnings • Q2 2012: P2.5B in revenue and P491M in net income, representing 146%

12

On Track to Hit P20B Pre-Sales FY 2012 Target, Representing 18% Growth Over 1H 2011

Executive Summary

Market Overview

Project Portfolio

Financial Statements Pre-Sales Project

Updates Land Bank Q&A

4,894

5,436

4,000

5,000

6,000

Q2 2011 Q2 2012

Pre-Sales (Million Pesos)

54% of FY 2012 Pre-Sales Target Achieved

11% growth

Page 13: Presentation to Analysts Q2 2012 - Century Properties3 Executive Summary • Record Q2 and YTD 2012 Earnings • Q2 2012: P2.5B in revenue and P491M in net income, representing 146%

13

Diversified P5.4B Revenue Base, International Clientele

Executive Summary

Market Overview

Project Portfolio

Financial Statements Pre-Sales Project

Updates Land Bank Q&A

Note: A project is defined as Luxury, Middle Income and Affordable if the majority of the units in a project are over P7M, between P3.5M to P7M, and between P1.2M to P3.5M respectively.

Page 14: Presentation to Analysts Q2 2012 - Century Properties3 Executive Summary • Record Q2 and YTD 2012 Earnings • Q2 2012: P2.5B in revenue and P491M in net income, representing 146%

14

Project Updates

Executive Summary

Market Overview

Project Portfolio

Financial Statements Pre-Sales Project

Updates Land Bank Q&A

Page 15: Presentation to Analysts Q2 2012 - Century Properties3 Executive Summary • Record Q2 and YTD 2012 Earnings • Q2 2012: P2.5B in revenue and P491M in net income, representing 146%

15

P25B of Unbooked Revenue on Launched Buildings

Project Total GFA (sq.m.)

Total Units

% Sold (Units)

Unbooked Revenue

Century City 390,539 3,879 92% P9B

Acqua Private Residences 151,006 2,416 85% P8B

Azure Urban Resort Residences 242,946 4,041 84% P7B

Canyon Ranch 83,899 955 95% P1B

Lifestyle Center 49,143 N/A N/A N/A

Total Launched Buildings 917,533 11,291 88% P25B

Executive Summary

Market Overview

Project Portfolio

Financial Statements Pre-Sales Project

Updates Land Bank Q&A

Note: As of June 30, 2012, exclusive of VAT.

Page 16: Presentation to Analysts Q2 2012 - Century Properties3 Executive Summary • Record Q2 and YTD 2012 Earnings • Q2 2012: P2.5B in revenue and P491M in net income, representing 146%

16

Unlaunched Buildings and Landbank Unlaunched Buildings Indicative GFA (sq.m.) Indicative Units

Century City 146,027 2,539

Acqua Private Residences 47,277 403

Azure Urban Resort Residences 74,197 1,470

Total Un-Launched Buildings 267,501 4,412

Landbank Land Area (sq.m.)

Commonwealth, Quezon City 43,966

Novaliches, Quezon City 500,000

Batulao, Batangas 1,422,899

Total Landbank 1,966,865

Note: GFA and number of units subject to change given projects are not yet launched.

Page 17: Presentation to Analysts Q2 2012 - Century Properties3 Executive Summary • Record Q2 and YTD 2012 Earnings • Q2 2012: P2.5B in revenue and P491M in net income, representing 146%

17

Construction Updates

Trump Tower Manila Broke ground for Trump Tower Makati in Century City in June

The Lifestyle Center at Century City A view of the Century City Mall from Pacific Star Building

Executive Summary

Market Overview

Project Portfolio

Financial Statements Pre-Sales Project

Updates Land Bank Q&A

Page 18: Presentation to Analysts Q2 2012 - Century Properties3 Executive Summary • Record Q2 and YTD 2012 Earnings • Q2 2012: P2.5B in revenue and P491M in net income, representing 146%

18

Construction Updates

The man-made beach at Azure

Azure Urban Resort Residences The first three towers at Azure – Rio, Santorini, and St. Tropez turning over soon

Executive Summary

Market Overview

Project Portfolio

Financial Statements Pre-Sales Project

Updates Land Bank Q&A

Page 19: Presentation to Analysts Q2 2012 - Century Properties3 Executive Summary • Record Q2 and YTD 2012 Earnings • Q2 2012: P2.5B in revenue and P491M in net income, representing 146%

19

Construction Updates

Azure Urban Resort Residences A view of the Paris Beach Club undergoing basement works and formworks

An artist’s rendition of the completed Paris Beach Club

Executive Summary

Market Overview

Project Portfolio

Financial Statements Pre-Sales Project

Updates Land Bank Q&A

Page 20: Presentation to Analysts Q2 2012 - Century Properties3 Executive Summary • Record Q2 and YTD 2012 Earnings • Q2 2012: P2.5B in revenue and P491M in net income, representing 146%

20

The Residences at Commonwealth

Executive Summary

Market Overview

Project Portfolio

Financial Statements Pre-Sales Project

Updates Land Bank Q&A

Page 21: Presentation to Analysts Q2 2012 - Century Properties3 Executive Summary • Record Q2 and YTD 2012 Earnings • Q2 2012: P2.5B in revenue and P491M in net income, representing 146%

21

Q&A

Executive Summary

Market Overview

Project Portfolio

Financial Statements Pre-Sales Project

Updates Land Bank Q&A

Page 22: Presentation to Analysts Q2 2012 - Century Properties3 Executive Summary • Record Q2 and YTD 2012 Earnings • Q2 2012: P2.5B in revenue and P491M in net income, representing 146%

22

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 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 accuracy 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.