2016 business plan final - listed...
Transcript of 2016 business plan final - listed...
Pruksa Real Estate Pcl.
Business Plan 2016
19 January 2016
Pruksa was honored with 3 awards in 2015Outstanding CEO award by SET Outstanding Company Performance award by SET Outstanding Investor Relations award by SET
• Property outlook
• Corporate strategy
• Corporate performance
• Financial strategy
Agenda
Pruksa Ville 73 The Plant Exclusique Plum Condo Central station
Property outlook and
Corporate strategyby
Mr. Thongma Vijitpongpun
Chairman of Executive Committee
and
Chief Executive Officer (CEO)
1.2) Standard-gauge, dual track railway (1,065,822 MB)
1. Bangkok-Nong Khai, Kaengkou-Mab Taphut
(875km. value 369,148 MB)
2. Bangkok-Phisanulok-Chaingmai
(670km. value 449,473 MB)
3. Bangkok-Hua Hin (220km. value 94,673 MB)
4. Bangkok-Rayong (220km. value 152,528 MB)
1.1) Mass Transit line (396,614 MB)
1. Orange Line: Thailand Cultural Center-Min Buri
(21 km. value 110,117 MB)
2. Pink Line: Kae Rai-Min Buri
(34.5km. value 56,691 MB)
3. Yellow Line: Lad Praow-Sam Rong
(30.4km. value 54,644 MB)
4. Red Line: Bang Sue-Hua Lam Phong (25.9km. value 44,158 MB)
5. Purple Line: Tao Poon-Ratburana (23.6km. value 131,004 MB)
4
19 projects under Thailand’s Transport Infrastructure Development Strategy (Improve prospect for real estate industry)
2) Air Transport (51,607 MB)
Suvarnabhumi Airport Phase II
3) Maritime Transport (3,895 MB)
1) Coastal port development (Terminal A)
Leam Chabang Port (value 1,864 MB)
2) Single Rail Transfer Operator (SRTO) Phase I,
Leam Chabang Port (value 2,031 MB)
19 Transport Infrastructure Projects with
Investment Plan (Bt1.8 Trillion)
Source: Transport ministry
1.3) Meter-gauge, dual track railway (93,186 MB)
1. Thanon Chira-Khon Kaen (185 km. value 26,005 MB)
2. Map Krabao-Thanon Chira Junction (132 km. value 29,853 MB)
3. Nakhon Pathorm-Hua Hin (165 km. value 20,037 MB)
4. Prachuap Khiri Khen-Chumphon (167 km. value 17,291 MB)
1.4) Motor way (160,420 MB)
1. Patttaya-Mab Taphut (62km. value 20,200 MB)
2. Bangyai-Kanchanaburi (96km. value 55,620 MB)
3. Bang Pa In-Nakhon Ratchasima (196km. value 84,600 MB)
10 Mass transit lines
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1. Red line (Thammasat-Mahachai
2. Light red line(Siriraj – Salaya)
3. Airport rail link(Bangsue – Phayathai Suwannaphoom)
4. Dark Green line(Lumlooka-Morchit-Samutprakarn)
5. Light green line (Silom)6. Blue line
(Bangsue-Hualumphong-Thapra-Phutamonthon)
7. Purple line (Bangyai-Bangsue)
9. Pink line (Khaerai-Minburi)
8. Orange line(Talingchan – Minburi)
10. Yellow line(Ladprao – Samrong)
The schedule of dual track Thai-Chinese has separated into 4 phases with 873 kms
1. Bangkok-Kaengkhoi: 133 Kms, expected to construct in 2016 and will operate in 2018
2. Kaengkhoi-Mathaput : 246 Kms – on study process 3. Kaengkhoi-Nakornratchasirma: 138.5 Kms, construct in
Nov 20154. Nakornratchasrima-Nongkai: 355 Kms, expected to
construct in Feb 2016
The schedule of dual track railway Thai-Japan
1. Bangkok-Chiangmai : 715 Kms Construction will start at the mid of 2016
2.&3. Kanchanaburi-Bangkok and Bangkok-Leam Cha-bang: 574 Kms (On study process)
The highest speed of dual track is 180 Kms/HourNormally the maximum speed was 250-300 Kms/Hour but Thai government set up maximum speed at 200 Kms/Hour
Dual track railway (รถไฟรางคู)
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Source : Prachachat newspaper
10
2016 Bangkok Metropolitan Region (BMR) outlook
Base on presale
54,788 58,190 55,873 71,679
79,231 91,058 85,610
90,208
166,785
190,471
142,102
182,680
11,048
8,817
9,869
10,232 311,852
348,536
293,454
354,799
2012 2013 2014 2015 2016 (F)
+21.4%
yoy
The BMR market is expected to grow between 5-10.0% yoy in 2016
THTH
OtherOther
CondoCondo
SDHSDH
1
2
3
4
+5-10%
371,966-391,639
+20.9%
9,938 - 10,744
192,262 – 206,428
95,522 – 95,620
74,244 – 78,847
Source: Marketing Intelligence and brand management , Corporate Marketing at Pruksa Real Estate Pcl. .
• Property outlook
• Corporate strategy
• Corporate performance
• Financial strategy
Agenda
Pruksa Ville 73 The Plant Exclusique Plum Condo Central station
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Key Highlights
Presale and revenue are expected to grow by 20.3% yoy and 10.6% yoy in 2016
Will continue to strengthen our existing business platform in TH and SDH segments
Long term sustainable business growth, continue to focus on the real demand
segment growth opportunity in the Bangkok Metropolitan Region (BMR)
Ac
Presale 51,000 42,385 20.3%/
Revenue 52,000 47,000 10.6%#DIV/0!
Number of new projects launch 60-65 44 36.4%-47.7%
Total value of new projects 50,000-54,000 44,579 12.2%-21.1%
2016 (F) 2015 yoy
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2016 Target and 2015 performance (Bt m)
* 2015 revenue was target at Bt47,000m
*
14,89617,198 18,630
23,075 23,820
7,655
8,35510,038
10,11912,800
6,730
15,502 10,190
8,951
14,300
116
227232
241
80
2012 2013 2014 2015 2016 (F)
14
41,282
2016 Presale target (Bt m)
Target51,000
29,397
THTH
InterInter
CondoCondo
SDHSDH
1
2
3
4
39,090
yoy+20.3%
42,38628%
25%
47%
+59.8% (yoy)
+26.5% (yoy)
+3.2% (yoy)
Presale target set at Bt51,000m or 20.3% grow yoy
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2016 Revenue target (Bt m)
14,908
20,66922,791
16,484
24,840
8,775
9,1959,776
7,514
13,200
2,837
8,450
9,694
9,041
13,800
429
497
441
172
160
2012 2013 2014 2015 (9M15) 2016 (F)
42,702
Target47,000
29.3% toachieve
38,811
26,949
THTH
InterInter
CondoCondo
SDHSDH
1
2
3
4
yoy+10.6%
9M15 revenue of Bt33,211m
Target52,000
27%
25%
48%
Revenue target set at Bt52,000m or 10.6% up yoy
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6
2015 2016 (F)
16
THTH
CondoCondo
SDHSDH
1
2
3
Total ValueBt50.0-54.0bn
60-65 Projects
Total Value Bt44.6bn
44 Projects
42-44
12-14
4
* All the 2016 projects have already secured land
60-65 projects with value of Bt50.0-54.0bn will be launched in 2016
2016 new projects launch
6-7
Value(Bt m)
TH 34 10,241 27,371SDH 6 1,075 7,597CD 4 4,453 9,611Total projects 44 15,769 44,579
New Projects launches for 2015
TypeNo. of
projectsUnits
Pruksa REM To offer an innovative industrial construction with quality control
and inspection at all process
Pruksa Precast To implement world class
innovative construction and offer the durable home
Pruksa CaringA service centre by offering
various communication channels such Call Centre 1739, Chat Online, application and etc.
R&D
คิดสรางสรรคนวัตกรรมที่มีคุณคาเพื่อลกูคา
CREATE VALUE INNOVATION
To select the quality material/product from the
leading brand
PMC Project Management Control A process to manage projects
from starting of PMC landacquisition until the projects are
closed
Top brand materials
Focuses on innovative construction technology and continuous design
improvement
Innovation
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Key innovation
1993 2004 2008 2009 2012 2013 2014 2015
2004Built “Precast Concrete Factory”
2014• Built precast factory No. 6-7
Total capacity for 7 factories are 1,120 units/month
• Supply Chain Management • I –Inspection • Prefabricated bathroom
2012First time applied REM in construction process for land property
2015• BIM (Building Information
Management) for Design• PMC (Project Management Control) • Energy saving home
2013 • Earthquake
resistance research• ASQ Award
2008• Fully Precast in low rise condo• Knock down stairs
2009Fully Precast in high risecondo (The Seed Mingle)
1993Pruksa Real Estate founded by K.Thongma Vijitpongpun
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New innovation
Precast development
2016
2016• BIM (Building Information
Management) for construction • Applied REM & Precast in high
rise condo• Connected premium house and
energy saving home• Global partnership in strategy
Agenda
• Property outlook
• Corporate strategy
• Corporate performance
• Financial strategy
Pruksa Ville 73 The Plant Exclusique Plum Condo Central station
Corporate performanceby
Mr. Lersuk Chuladesa
Vice Chairman of Executive Committee
and
Chief Operating Officer (COO)
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Key Highlights
High secure backlog of Bt25,938m at the end of 4Q15 while 2016 backlog was
Bt15,278m for future revenue
173 active projects with unsold value of Bt81,000m will help to secure future revenueLow rise: 141 projects - Bt61,648m (76.1%)High rise: 32 projects - Bt19,352m (23.9%)
Have started to apply precast and REM in construction in order to reduce business cycle time, better quality of home and focus on fasten asset turnover.
Pruksa is striving to achieve toward Consumer Mega Trends
16,484
24,840
7,514
13,200 9,041
13,800
172
160
2015 (9M15) 2016 (F)
THTH
A. 2016 backlog of Bt15,278m with total
backlog of Bt25,938m
B. 173 active projects with an unsold value of
Bt81,000m and 2016 project launches will
be 60-65 projects with value of Bt50-54bn
C. Expected business cycle time for landed
property to be below 75 days in 2016
How to achieve revenue target
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How to achieve 2016 revenue target (Bt m)
InterInter
CondoCondo
SDHSDH
1
2
3
4
27%
25%
48%
Target52,000
yoy+10.6%
Target47,000
29.3 % to achieve
9M15Revenue Bt33,211m
15,278
5,873
4,787
By year
2016 Backlog Bt15,278m
20162016
20182018
20172017
Total backlog is Bt25,938m, while 2016 backlog is Bt15,278m
InternationalBt71m, 1%
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CDBt9,053m, 59% SDH
Bt2,709m, 18%
THBt3,445m, 22%
Bt25,938m
A. Backlog at the end of 4Q15 (Bt m)
There are a total of 173 active projects that have an unsold value of Bt81,000mLow rise: 141 projects – Bt61,648m (76.1%) High rise: 32 projects - Bt19,352m (23.9%)
2016 project launches will be 60-65 projects with value of Bt50-54bn
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B. Active projects at the end of 4Q15
2008 2009 2010 2011 2012 2013 2014 2015
TH and SDH 111 91 115 144 167 146 87 79
CD 420 564 582 521 513 780 817 739
2008 2009 2010 2011 2012 2013 2014 9M15
Total 8,913 11,249 12,849 12,194 12,444 17,137 17,084 13,135 100%
TH and SDH 8,492 9,527 11,566 10,470 11,353 13,169 13,166 9,495 72.3%
CD 421 1,722 1,283 1,686 930 3,800 3,800 3,602 27.4%
Inter 38 161 168 118 38 0.3%
Total 12,968 19,033 23,277 23,212 26,949 38,811 42,702 33,211 100%
TH and SDH 12,404 15,437 19,669 18,644 23,683 29,864 32,567 23,998 72.3%
CD 564 3,596 3,608 4,486 2,837 8,450 9,694 9,041 27.2%
Inter 82 429 497 441 172 0.5%
9M15 Breakdown
Product Type
Booking to Transfer (Days)
Product Type
Unit Transfer (Units)
Total Revenue (Bt m)
Business Cycle Time
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C. Expected business cycle time
Business cycle time for landed property in 2016 is expected to be less than 75 days
To initiate with Germany research to build energy saving house with using environmental friendly materials and DGNB certified following 4 consumers 4 mega trends for example The Plant-Estique Pattanakarn
To cooperate with AIT (Asian Institute of Technology) for prototype device to monitor the quality of pipe during construction
To develop full dimension of design in building information modeling (BIM) for all dimensions
Consumer Mega Trends
Pruksa : Create Value (คิด สรางสรรคคุณคา)
4 Consumer Mega Trends Pruksa Innovation(แนวโนมความตองการของผูบริโภค)
Safety Homeบานทีแ่ขง็แรงปลอดภัย
Healthy Homeบานที่ใสใจดานสขุภาพ
Green Homeบานลดการใชพลงังาน
Smart Homeบานทันสมัย เพิ่มความสะดวก
Safety Concernความปลอดภัย
Demographyการเปลี่ยนแปลงของ
ประชากรโลก
Sustainabilityความยัง่ยืน
Technologyเทคโนโลยีที่ทันสมัย
Year 2015 Year 2016
Fully precast structure research with AIT and ChulalongkornUniversity
Applied low volatile organic compound
Started to implement solar cell in the common areas of the projects such as swimming pool, sport club and entrance
Started home automation in mid to high-end projects such as CCTV, Smart phone and etc
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Agenda
• Property outlook
• Corporate strategy
• Corporate performance
• Financial strategy
Pruksa Ville 73 The Plant Exclusique Plum Condo Central station
Maintain prudent financial policies to mitigate challenges in business cycle
IBD Ratio between 0.8-1.25X
Efficient management of financial cost
Consider higher dividend payout ratio than the previous year (>30.0%)
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Financial strategy
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Budget for land acquisition
13,222
5,899
16,711
14,000
2013 2014 2015 2016 (F)
Land budget is Bt14,000m in 2016
2015 (Unaudited)
IBD/E : 0.58x
D/E : 0.9x
Balance Sheet (Bt m)
43,821
56,194 61,033 65,250
17,527 20,948 22,295 20,00020,082
24,933 29,707
34,298
Total Asset Interest bearing debt Equity
2014
IBD/E : 0.75x
D/E : 1.05x
2013
IBD/E : 0.84x
D/E : 1.25x
2012
IBD/E : 0.87x
D/E : 1.18x
IBD ratio is well-managed to be within our internal target at 1.25x
2012 2013 2014 2015 (Unaudited)
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0.50
0.851.00
0.50
28.5%
32.6%
33.4%36.5%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
40.0%
0.10
0.20
0.30
0.40
0.50
0.60
0.70
0.80
0.90
1.00
1.10
2012* 2013 2014 1H15
Dividend per share (Bt/Share) Dividend payout ratio (%)
Bt/Share
Dividend payout
Remark : 2012 Thailand flood
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Thank you
Pruksa real estate Public Company Limited (“Pruksa”) provides this presentation for the purpose of publishing company’s performance and material financial information. Some statements made in this presentation are forward-looking statements with subject to change due to the market’s condition and various uncertainties. These also include statements with respect to our management strategies, beliefs and expectations. Pruksa, therefore, makes no representation or warranty as to the accuracy, completeness or appropriateness of the information contained in this presentation. This presentation does not constitute any advice, offer or solicitation for any investment or otherwise. The readers or recipients should consider the information carefully and are requested to use their own discretion to review the information relating to Pruksa from the presentation and the other sources before making a decision in any transaction. Any unauthorized use, reproduction or distribution in whole or in part of the information contained in this report without Pruksa’s permission is strictly prohibited. However, Pruksa reserves the right with its own discretion to amend or modify the information contained in this presentation without any prior notice. Pruksa shallnot endorse or accept any responsibility for the content or use of any such opinion or statement.