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TA Corporation Ltd
TA CORPORATION LTD An Established Quality Property and Construction Group
Corporate Presentation (1Q2012) May 2012
TA Corporation Ltd
Agenda
1. Group Overview
2. Our Business
3. Financial Highlights
4. Corporate Developments
5. Prospects, Business Strategies & Future Plans
6. Q & A
7. Appendix
2
TA Corporation Ltd 3
Group Overview
Estilo
TA Corporation Ltd 4
Group Overview
Over 40 years experience
Diverse portfolio of projects for government bodies and established real estate developers
Supported by a suite of complementary competencies
Construction Real Estate
Over 15 years experience
Reputation for delivering quality small to medium size residential developments
Regional presence in Cambodia
and the PRC via JVs
An Established Quality Property and Construction Group
TA Corporation Ltd
Gillenia 5
Our Business
TA Corporation Ltd
Real Estate Development
6
Gained reputation as a developer targeting the middle to upper middle markets
- Quality developments at competitive prices
Focused on small to medium size
residential developments
Leveraged on competencies in construction business
- Cost efficiencies, quality & reliability
Overseas projects via JVs (in PRC &
Cambodia)
TA Corporation Ltd
Construction
7
Established track record of over 40 years - Reputation as a reliable builder - Ability to undertake a wide spectrum of
projects - Private and public sector - Iconic projects e.g. SOTA, St James
Power Station and Ascott Raffles Place - Our clients include:
- Government bodies: URA, HDB, JTC - Major real estate developers: Allgreen
Properties, CapitaLand, The Ascott Group, Keppel Land Realty, Wheelock Properties & Wing Tai Holdings
TA Corporation Ltd
Construction: Complementary Competencies
8
For commercial, industrial and residential buildings and other specialised users
An authorised dealer of air conditioning systems for Daikin Airconditioning (Singapore) Pte. Ltd.
Indian subsidiary TAC Resources (India) operates the Test Centre in Chennai, India
1 of only 4 BCA-endorsed test centres which undertake the training and testing of construction workers in India before working in Singapore
Design, installation and maintenance of air
conditioning and mechanical ventilation systems
Fabrication of metal frameworks
Training & testing centre for construction workers
Leasing of construction machinery, fabrication and repair of metal formworks and the erection of building structural steels
SERVICES THAT COMPLEMENT OUR CORE CONSTRUCTION BUSINESS BY SUBSIDIARIES
TA Corporation Ltd
Financial Highlights
Trussville 9
TA Corporation Ltd 10
1Q2012 Highlights
Revenue soars 105.6% to S$93.5 million on higher contributions from both real estate development & construction business segments
Gross profit margin rose 2.5 percentage points to 25.0% on strong performance achieved and better costs control
Net profit after tax more than doubles to S$16.3 million, from S$7.7 million in 1Q2011
Strong balance sheet and working capital position with total cash of approximately S$54.5 million
Strong construction order book: S$481 million as at March 31, 2012
TA Corporation Ltd 11
Financial Highlights
(S$’ million) 1Q2012 1Q2011 (Restated(1)(2))
Change (%)
Revenue 93.5 45.5 105.6
Gross profit 23.4 10.2 128.1
Share of profit from associates 0.9 0.8 17.2
Profit before tax 19.3 9.1 113.4
Profit after tax 16.3 7.7 112.7
Profit attributable to Owners of the Company
13.5 6.5 108.3
(1)1Q2011 figures are prepared on proforma basis
(2)Restated due to the adoption of INT FRS 115
TA Corporation Ltd 12
Earnings Growth: Profit attributable to Owners of the Company
(S$ ‘million)
TA Corporation Ltd 13
(S$ ‘million)
33.7
64.3
99.7
124.5
13.8
47.2
0
20
40
60
80
100
120
140
FY2008 FY2009 FY2010 FY2011 1Q2011 1Q2012
Segmental Revenue
Real estate development business soars 242.0% to S$47.2 million in 1Q2012, on higher revenue recognised from ongoing residential projects i.e. Parc Seabreeze, Coralis & Auralis;
and first time contributions from a newly launched residential development i.e. The Cristallo
193.2
157.9143.3
160.2
31.746.3
0
50
100
150
200
250
FY2008 FY2009 FY2010 FY2011 1Q2011 1Q2012
Construction
Construction business up 46.1% to S$46.3 million in 1Q2012, on higher revenue recognised from progressive completion of ongoing projects
Real Estate Development
TA Corporation Ltd 14
GP Margins
(%)
Overall gross profit margin up 2.5 percentage points to 25.0%
Real estate development GP margin down marginally by 0.2 ppt to 29%
Construction GP margin up 1.3 ppt to 21.0%
Real Estate Development Construction Overall
TA Corporation Ltd 15
(S$’ million)
31 Mar 12 31 Dec 11 Change
+/(-)
Equity attributable to owners of the Company 183.4 170.1 13.3
Gearing Ratio (times) 0.9 1.0 -0.1
NAV Per Share (cents) 39.4 36.6 2.8
Earnings Per Share (cents) 2.9(1Q2012) 7.7 (FY2011) N.M.
Dividend Per Share (cents) N.A. 1.2 N.A.
Key Financial Indicators
TA Corporation Ltd
Corporate Developments
Coralis (Artist Impression) 16
TA Corporation Ltd
Real Estate: Ongoing Projects
17
Project name Project type Tenure Number of units
Estimated date of TOP
Balance units
Parc Seabreeze 20-storey apartment with communal facilities
Freehold 94 September 2012
Fully Sold
Auralis 2 blocks of 5-storey apartments with communal facilities
Freehold 56 December 2013
Fully Sold
Coralis 20-storey apartment with communal facilities
Freehold 127 March 2014 8
The Cristallo 3 blocks of 5-storey apartments with communal facilities
Freehold 74 January 2015
26
TA Corporation Ltd
Real Estate: Ongoing Projects by Associates
18
Singapore Garden Phase 7
11- and 18- storeys residential apartments cum retail shops with communal facilities and basement carparks
70-yrs from November 2007 and
March 2006
584 (to be
launched)
To be finalised
Project name Project type Tenure Number of units
Estimated date of TOP
Starlight Suites 35-storey apartment with communal facilities
Freehold 105 March 2015
Singapore
PRC
Phum Tekthla, Sangkat Tekthla, Khan Sen Sok, Phnom Penh
21 Semi-detached villas
Freehold 21 To be finalised
Cambodia
TA Corporation Ltd
Land Bank for Future Development
19
Location Type of Planned Development
Approximate Site Area
(sq m)
Approximate Planned GFA
(sq m)
Tenure Effective Equity
Interest (%)
16 Gambir Walk Apartments 3,763 3,898 Freehold 100
19,21, 23 & 25 Jalan Sayang 3 storey strata terrace houses with attic & basement (7 units)
1278 1723 Freehold 100
454 Balestier Road To be confirmed 994 To be confirmed Freehold 100
Singapore
Singapore Garden Phase 8 Xiaonan Village, Shuishiying Street, Lvshunkou District, Dalian
Commercial, shopping complex and hotels
N.A. 96,398 50-yrs from March 2006
and November
2007
25.37
The PRC (Owned by PRC Associate)
TA Corporation Ltd 20
Project Name Project Description Approximate Contract Value(1) (S$’mil)
Nouvel 18 Proposed residential flats at 18 Anderson Road 163
Viva Proposed condominium development at Suffolk Road/Thomson Road
171
Foresque Residences Proposed condominium development at Petir Road 135
Starlight Suites Proposed apartments at River Valley Close 41
Riversails Proposed condominium development at Serangoon Crescent/Upper Serangoon Road
231
The Sorrento Proposed condominium at West Coast Road 41
(1) The approximate contract value excludes the value of works carried out pursuant to variations orders
Construction: Ongoing Projects
TA Corporation Ltd
Parc Seabreeze (Artist Impression) 21
Prospects, Business
Strategies & Future Plans
TA Corporation Ltd
Prospects: Real Estate Development
22
Singapore Weaknesses in global markets arising from the unresolved European sovereign debt crisis; and uncertainty arising from the possible implementation of further cooling measures by the Singapore Government
Nonetheless, the Group remains positive on demand for quality well-located residential properties in Singapore. The government’s cooling measures are meant to encourage greater financial prudence amongst buyers, not to discourage first-time buyers and property owners without outstanding home loans
Regional PRC: Despite a perceived slowdown in the China’s economic growth in 2012; rising income levels and rapid urbanisation is favourable to the real estate development business
Cambodia: Real estate sector projected to grow 7.7% per year for 2012 and 2013
(1)
(1)Monthly Bulletin of Statistics dated October 2010 from the Ministry of Economy & Finance of Cambodia
TA Corporation Ltd
Prospects: Construction
23
BCA forecasts average annual construction demand to reflect continued and sustained workload
-2012:S$21 to S$27 billion -2013 & 2014: S$19 to S$27 billion
(1)
HDB ramps up its building programme
-25,000 new HDB flats to be launched in 2012(2)
Backed by strong construction order book -S$481 million worth of construction contracts for delivery
Sources:
(1) http://www.bca.gov.sg/keyconstructioninfo/others/free_stats.pdf
(2) http://www.hdb.gov.sg/fi10/fi10296p.nsf/PressReleases/3F7F3B2BDD45CE64482578ED0009B240?OpenDocument
TA Corporation Ltd 24
Business Strategies & Future Plans
• Build niche residential developments targeted at middle to upper middle markets
• Good prospects for the construction business in both the private and public sectors
• Real Estate Development : Via partnerships with local partners in the PRC & Cambodia, with focus on the mid-range market
• Construction Business : To render project management services on building projects mainly in South & Southeast Asia
• Source for development sites located at vibrant and accessible areas with well-developed amenities
- To expand project profiles and capitalise on suitable development opportunities • Monitor emerging market trends to adjust land acquisition strategy
accordingly
• Currently in preliminary discussions to enter into a JV to produce pre-cast concrete compound and ready-mixed concrete catering primarily to the HDB market
Continue to focus on our core business and markets
Expand our business overseas
Expand our complementary businesses
Acquisition of new development sites for our
land bank
TA Corporation Ltd 25
Investment Summary
Established reputable player in Singapore with complementary business segments
Strong order book and revenue yet to be recognized from fully sold projects
Footprint in promising emerging markets
Healthy Financials
Dividend Yield
TA Corporation Ltd
Belle Vue 26
Q & A