contents section 1 : company highlights & advantages
TRANSCRIPT
10/12/55 1 1
Contents
Section 1 : Company Highlights & Advantages Section 2 : Strategic Planning & Product
Section 3 : International Updates
Section 4 : Financial Performance
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Vision
“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.”
Goals
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 of 100,000 million Baht by 2017
Corporate Vision and Goals
2
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A Successful Road Map
20 April 1993 Pruksa Real Estate founded by K.Thongma
Dec 2005 Registered as a Public Company Limited and listed on SET
2006 Implement SBU strategy in organization
2007 First condominium transferring
2008 Presale - THB 16 bn
2009 # 1 in Thailand Presale - THB 23 bn Revenue - THB 19 bn
2004 Built “Precast Concrete Factory” a new construction technology in Thailand – 240 houses / mo.
2010 Credit Rating
Upgraded to A by TRIS
2010 Still # 1 in Thailand Presale – THB 38.75 bn Revenue – THB 23.4 bn
2010 Launched Internationnal booking in Maldive, India
2011 - New Precast Factory adds another 400 house / mo.
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Dis
tingu
ishe
d P
rodu
ctio
n
Proven right and unique business model providing competitive advantages Being both builder and developer, we control costs, time, qualified material with no mark-up paid to main contractors. Not only leader in civil engineering but also regional recognition gainer for its best
architecture hi-rise Condo in Asia Wide product coverage (house type, design, price) Short Construction time for low-rise. Business cycle competitive advantage
Hig
h G
M,
Fast
gro
wth
High Gross margin of 38 % in 2009 – 10 108% Asset Turnover in 2009, 88% in 2010, 60% in 1Q’11 Strong growth in asset, more than triple from 2007 to Bt. 38.7 billion in 1Q’11 Healthy Financial Condition during growth as No. 1 Housing revenue since 2009
On-
goin
g St
aff D
ev.
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
Distinguished Property Developer
4
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4 Competitive Strengths
3) Strong Platform and Strategy to capture Growth
1) Unique Business Model
Strong Barrier to Entry in TH
4) FAST growth, Strong
Financial Condition
2) Dominant Player in large “Real Demand” Market Segment
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Precast (PCF 5) highlight
Pruksa Precast PCF 5 is the world biggest plant for precast elements
Expected Capacity : 430 Units house/Month( 112,000 m2/month )
Production Area : 14,200 m2
Stock Area : 9,800 m2
High Technology:
Fully Automated Carousel System (ระบบการผลติอตัโนมตัเิตม็รปูแบบ) Shuttering System : Robot (การวางแบบกัน้ขางโดย robot) Reinforcement : Automated Mesh Plant (ระบบการผลติเหลก็เสรมิ ดวย เครือ่งจกัรอตัโนมตั)ิ Concrete Placing : Automatic (ระบบเทคอนกรตี อัตโนมตั)ิ Curing: Automatic (ระบบบมคอนครตี อัตโนมตั)ิ
Plant Investment (MB)
Operation year
Production Line
Output Factories Capacity / Month
PCF 1 (Carrousel I)
650 2004 Semi Automated
Carrousel System
House Wall 57,600 sq.m. (Net area) equiv. to 240 house unit
PCF 2 (Fence Factory)
150 2005 Fixed Mould System
House Fence 2,000 cubic metre or equiv. to 1,700 house fence
PCF 3 (Slab & Special
Element Factory)
200 2007 Fixed Mould System
Slab & Special Element for House
4,800 cubic metre or equiv. to 640 house unit
PCF 4 (Condo &
Façade Factory)
250 2010 Fixed Mould System
-Condominium wall and
Façade -Townhouse Facade
16,000 square metre or equiv. to 320 units 2,000 square metre or equiv. 900 house unit
PCF 5 (Carrousel II)
850 2010 Fully automated
Carrousel System
House Wall 96,000 sq.m. (gross area) equiv. to 400 house unit
All plant summary – Total 640 Units / month
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Organization Structure
Developer +Contractor
+Manufacturer
Customer Value Product/Project/Service
+Cost Leadership +Price Leadership
Condominium Competitive Pricing Model
& Good Customer Value
Single-Detached House Competitive Pricing Model
& Good Customer Value
Town House Competitive Pricing Model
& Good Customer Value
Catch up New Lifestyle
High Working Capital
Long-Term Growth
Business Process
Short Working Capital required
Easy Business
Expansion
Barriers To Entry
In TH
To be No.1
Developer
Integrated Developer
(Low Rise+ High Rise)
Modern Trade Developer
(Low Rise : TH, SDH)
Portfolio Management
(High Rise : Condominium)
Effective Integration
leads to Penetration Pricing
Possibility with
Competitive Customer Value
Competitive Advantages # 1
Uniqueness : Right / Mass Production at low cost thus barrier to entry
8
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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
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Tunnel System: for TH Construction
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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
9,170
38,752
22,774
25,554
12,688
7,019
17,635
5,669
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
2009 2010 2Q'11 1H'11 2011 1Q'12 2Q'12 1H'12
Townhouse Single Detached House Condominium Intern'l
Mill
ion
Bah
t
12
23% YoY
24 % QoQ
28% YoY
Total Net Booking
50,808 50,189
61,562
75,359 85,207
53,384 42,488
15,501 16,367 14,076 10,771 13,827 10,858
5,387 16,700 16,390 13,437 10,863 11,461
11,891 4,927
18,607 17,432 34,049
53,725 59,919
30,635 32,174
6,5687,074 8913 11,249 12,849
10,509 11,232 -
10,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000 90,000
2006 2007 2008 2009 2010 2011 1H '12BKK & Vicinities Townhouse Single Detached house Condominium PS transf
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Competitive Strength # 2
Market Access– Dominance in Large & Real Demand market segment
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Competitive Strength # 3
Solid Platform and Strategy to capture Growth
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-priced SDH by Expanding new SDH Segment 3) Expand into Condominium Segment with Optimum Risks
Rapid growth of city CD / city TH
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Fast growth, High Asset T/O
16
Competitive Strength # 4
Million Baht Times 41,982 41,988
17,762
1,2193,600
2,100
20,307 19,003 19,032
11,095
16,292
41,753
18,871
34,091
15,263
13,023
10,1108,206
17,62916,99613,111
1.08
1.37
0.61
0.450.35
1.361.23
1.47
1.191.07
0.36
0.160.15
0.86
0
10,000
20,000
30,000
40,000
'07 '08 '09 '10 Res. '11 1Q'12 2Q'120
0.5
1
1.5
Asset Liabilities Equity
Interest Bearing debt Liabilities : E Interest. bearing debt : E
45%
66%
6%10%
26%
15%23%
19%15% 12%
108%
89% 95%88%
61%
13%17% 19%
13%7%
17% 18%
31%25%
14% 18%
0%
20%
40%
60%
80%
100%
120%
'07 '08 '09 '10 '11 1Q'12 2Q'12
Avg. Asset T / O Avg. ROA Avg. ROE Net Profit Margin
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Contents
Section 1 : Company Highlights & Advantages
Section 2 : Strategic Planning & Product
Section 3 : International Updates
Section 4 : Financial Performance
18
Middle-low income
Low income
1.6 – 2.0 / unit
0.6 - 1.2 / unit
Low income 1.0 - 1.5 / unit
The Connect
Baan Pruksa
Pruksa Ville
The Plant Citi Stylish Middle income 2-3 Storey 2.0 – 4.0 / unit
Urbano Stylish Middle income 2 Storey 1.8 – 2.7 / unit
Pruksa Town Stylish Middle income 2 Storey 1.5 – 2.8 / unit
Brand Segment Price (mil. Bt) Logo
Silvana (in Bangalore) Middle income Start @ 2.5 / unit
Reno Middle –low income Start @ 1.4 / unit
Patio
Villette Middle – High income
Middle – High income Start @ 3 / unit
Start @ 2.6 / unit
Brand & Segmentation of Pruksa: Townhouses
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Middle-High income
Middle-low income
2.5 – 10.0 / unit
2.0 – 3.0 / unit
Passorn
Pruksa Village
The Plant Middle income (Stylish SDH) 3.0 – 6.0 / unit
Brand Segment Logo
Middle-low income 1.9 – 3.0 / unit Pruksa Nara
Price (mil. Bt)
Silvana (in Bangalore) Middle income Start @ 3.2 / unit
Pruksa Puri Middle income 2.5 – 3.5 / unit
Natura Middle income Start @ 2.5 / unit
Brand & Segmentation : Single Detached Houses
20
Brand Segment Price (mil. Baht) Logo
Middle-High income 1.5 - 10.0 MBt / unit IVY
Low income 0.5 - 0.8 MBt / unit City Ville Condo
The Seed Middle income (Stylish Condo) 1.4 – 7.0 MBt / unit
Brand & Segmentation : Condominiums
Be you Middle-Low income 0.8 – 1.5 MBt / unit
624 Condolette Middle-Low income 0.8 – 1.0 MBt / unit
Middle -Low income 0.8 – 2.2 MBt / unit The Tree
Chapter One
Urbano Condo
0.9 – 2.0 MBt / unit Middle income
Middle-High income
FUSE Middle-High income
2.0– 14 MBt / unit
2.7 – 8.5 MBt / unit
Condolette
2.5 – 7.0 MBt / unit Middle-high income
Coral Ville (Maldives) Middle-High income 3.8– 4.8 MBt / unit
The Plum Middle-Low income 0.8 – 1.2 MBt / unit
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CEO
CBO 2 CBO 3 CBO 1
SBU
Connect
SBU
PV 1
SBU
PKV
SBU
PK
SBU
PT
SBU
CD 1
SBU
PS
SBU
CD 2
SBU
CD 4
SBU
SD 3
SBU
CD 3
IB : India
Maldives
CFRO CSO
PRECAST
IB : VN
Fin. Planning IT
IR
HRM
Business
Support
Highly Skilled & Experienced Management Team in each Market Segment Interchangeable Management Team
Strong Team Synergy
Townhouse Single Detached H. Condo. Condo. SDH IB IB
Business Development
Team
Supporting Team
21
Treasury
R & D
HRD
Process
Business
Land Acquisitions, Purchasing
Account & Fin
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Section 1 : Company Highlights & Advantages
Section 2 : Strategic Planning & Product
Section 3 : Financial Policy & Performance
Section 4 : Investment Highlights
23
Dividend Policy & Payment B
t. / s
hare
(bar
gra
ph)
Performance of the year
Net Profit (million Baht)
Legal reserves (million Baht)
% of dividend payment
Dividend per share (Baht) Payment Date
2011 2,834.82 - 31.0 0.4 May 17, 2012 2010 3,488.14 - 31.6 0.50 May 13, 2011 2009 3,621.83 - 33.33* 0.55 May 13, 2010 2008 2,373.37 - 30.54 0.33 April 23, 2009 2007 1,269.88 2.33 37.87* 0.22 May 8, 2008 2006 1,303.28 - 33.36* 0.20 May 4, 2007
0.33 0.55 0.5 0.4
3.8 4.65.9 6.9 7.7 8 8
0.6 1.08 1.64 1.58 1.28 0.29 0.45
8.4
4.4
17.8 18.5
11.6
15.1 15.717.8
0.22 4814350
5
10
15
20
'07 '08 '09 '10 2011 1Q'12 2Q'12 6AUG12
05,00010,00015,00020,00025,00030,00035,00040,00045,000MKT. Cap in SET @ period end
Dividend per shareBook Value per shareEarning per shareEnding PS price in SETDividend Cash Outflow
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Conclusion & Key Investment Highlights
Leader of Thailand residential property developer
Diversified market segment and location
Strong brand recognition and proven track record
Cost competitiveness from large production scale and prefabrication technology
Solid financial performance and balance sheet
TRIS Rating “A” negative
Experienced management team
25
26
TH : 5,149TH : 7,536
TH : 9,743TH : 11,948
SDH : 5,601
SDH : 7,723
CD : 43
CD : 564
CD : 3,608
TH : 13,744TH : 11,503
SDH : 4,869
SDH : 8,322
SDH : 7,140
SDH : 3,862
CD : 3,038
CD : 4,487
CD : 3,596
Inter : 896
Inter : 100
Other : 65
Other : 38
2007 2008 2009 2010 2011 2012(Target)
2012 Revenue Target
19,033 MB.
13,034 MB.
9,093 MB.
23,280 MB.
26,000 MB.
23,230 MB.
Growth +43%
Growth +46%
Growth +22%
Target -27%
Growth 0%
Growth +12%
32%
12%
3%
53%
1%
19%
30%
50%
Other : 93
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Thane: Mumbai 50 : 50
Bangalore 100%
On going and upcoming projects
International : India overview
Maldives Update
• JV with HDC, 5-storey Condo in Hulhumale (480 MB, 9 bldgs, 180 units) • As of 2Q’12, accum. transfer is 216 MB (87 units) • Construction will be completed in Q3 ’12 • Revenue recognition started in 2011 and will end in Q1 ’13
C1
C2
C3
C4
C5
C6
C7
C8
C9
Transfer
Not Transfer
28
Bangalore, India update
29
• Total project 401 units 1,645 MB (321 villa, 80 row house) • As of Q2 ’12, accum. sales 649 MB (175 Units) and 36 units transferred
(125 MB). Target 2012 revenue is 513 MB 29
• 85% JV with Hoang Huy Service Investment Co. • JV Co. is expected to get the investment license in Q3, 2012 • Land purchase is on process - to be developed as a condominium project in Hai
Phong. • First phase to open for booking in Q4, ’12 (or early 2013)
Vietnam Update
30