Analyst Meeting 2014 Business Plan

2014
BUSINESS PLAN
Analyst Meeting
Jan. 23, 2014
Summary of major achievement in year 2013
1. Performance
•
Booking
= 30.2 Bn. : +20% y.o.y
•
Revenue recognition
= 2x.x Bn : + x% y.o.y
•
Rental income
= 2.2 Bn. : +20% y.o.y (+5% over budget)
2. Acquired one more rental property project at USD 104 Mn. in Sep’13 via Land and Houses
U.S.A Inc.
3. Launching of 24 projects with total project value of 38.7 Bn. (+51% VS. 2012)
(SH:TH:CD = 40%:9%:51%)
4. Secure 6.1 Bn. of raw land for Housing Development
5. Secure a new piece of leasehold land in Thonglor (Sukhumvit) for Service Apartment
2
Executive Summary for 2014 Business Plan
1. Revenue growth target
•
•
•
•
Booking (Presales)
= 32.0 Bn. : +6% y.o.y
Revenue recognition
= 25.0 Bn : +x% y.o.y
Rental income
= 2.5 Bn. : +14% y.o.y
Share of profit from associated co.=
2.3 Bn. : +13% y.o.y
2. Try to maintain the level of Gross Profit Margin to be same as last year
3. Continue explore and secure new raw land
•
•
Housing Development Business : 7 Bn. provided for land acquisition
Rental Business : explore and acquire land for development of new shopping mall and/or Service
apartment/Hotel (~2 Bn.)
4. Try to control Net Debts to Equity Ratio of < 100%
5. Maintain Payout Ratio at least 70%
3
Booking (Presales) 2012-2013 & 2014’s Target
M.B.
M.B.
50,000
50,000
40,000
40,000
32,000
30,199
30,000
30,000
25,079
32%
35%
25%
20,000
8%
(+9%)
6%
5%
19,900
20,000
18,205
16,704
(-3%)
10,415
10,000
67%
60%
62%
10,000
(+28%)
2,013 1,578
0
2012
2013
10,070
6,362
2,030
0
2014(F)
2014 (F)
SH+Land
2012 SH+L
2013 2014(F)
TH
2012 2013
TH 2014(F)
2012 Condo
2013 2014(F)
Condo
4
Transfer (Revenue Recognition) 2012-2013 & 2014’s Target
M.B.
M.B.
50,000
50,000
40,000
40,000
25,000
30,000
30,000
2x,xxx
22,305
20,000
18%
13%
18%
7%
7%
80%
74%
16,436
8%
10,000
18,551
20,000
10,000
74%
4,614
3,974
1,895
0
2012
2013
1,835
0
2014(F)
2014 (F)
SH+Land
2012 SH+L
2013 2014(F)
TH
2012 2013
TH 2014(F)
2012 Condo
2013 2014(F)
Condo
5
Booking by Segmentation
Segment (Mn Baht.)
<= 2.0
2013
2014(F)
17%
3%
>2.0 <=4.0
3%
3%
17%
32%
>4.0 <=6.0
20%
20%
22%
24%
24%
20%
>6.0 <=10.0
25%
26%
19%
>10.0 <=25.0
>=25.0
Average price (Mn.Baht.)
26%
25%
8%
20%
12%
20%
8%
5.8
5.7
6
Brand & Product Segment (Dec’13)
PRICE RANGE
SINGLE HOUSE
TOWNHOUSE
CONDO
(10 brands)
(4 brands)
(6 brands)
No. of project
>25 M.B.
2
(2)
10 – 25 M.B.
Nantawan
5
(4)
6- 10 M.B.
(1)
Mantana
Seewalee
(8)
24
(7)
(1)
(1)
(4)
(3)
4 - 6 M.B.
Chaiyapruk
v
Chollada
(4)
(2)
Pruklada
Parichart
(6)
(-)
13
(1)
(-)
2 - 4 M.B.
13
(5)
(2)
(6)
<2 M.B.
6
(3)
(2)
No. of project
42
Remark : Excluding L&H Park 1 project.
7
(1)
14
63
7
Booking from Existing projects vs. from Newly launch projects
% of Booking
% of Total booking
19,998
19,200
25,074
30,199
32,000
100%
21%
80%
47%
32%
44%
32%
60%
40%
20%
79%
53%
68%
56%
68%
0%
2010
2011
Existing
project
Newly
launch
2012
2013
2014(F)
2014(F)
Newly
launch
Existing
project
8
Expansion in Provincial Markets
Chiang Rai
No. of Active Provinces
Udonthani
2014
Maha Sarakham
Chiang Mai
2013
Korat
6
2012
5
2011
5
0
Khon Khaen
Hua Hin
8
5
10
No. of Active Projects in the Provinces
2014
8
2013
Phuket
8
2012
2 13
2011
13
25
21
Already have active projects in 2013
Plan to have new projects in 2014
0
10
SH
20
30
Condo
9
Contribution from provincial market 2010-2014
% of Booking
% of Transfer
% of Total booking
% of Total sales
30%
30%
25%
25%
20%
20%
15%
15%
10%
10%
15%
5%
12%
12%
0%
5%
12%
12%
2012
2013
14%
0%
2012
2013
2014(F)
2014 (F)
2014(F)
2014
(F)
10
Growing existing projects
No. of existing projects
Value (Million Baht)
Projects
M.B.
120
100,000
100
80,000
80
64 prj.
60
55 prj.
7
6
57 prj.
6
6
14
56,638
60,000
~ 52 prj.
7
40,000
44,473
2,379
2,544
20,000
39,551
46,565
10,613
690
2,261
4,331
43,615
41,694
Dec'12
Dec'13
59,638
40
20
42
45
43
Dec'11
Dec'12
Dec'13
0
0
Dec'14(F)
Dec’14(F)
SH+Land
Dec'11
TH
Dec’14(F)
Dec'14(F)
Condo
11
Existing Project as of Dec. 2013
TYPE
BRAND
NO. OF
PROJECT
SIZE
(Rai)
UNIT
% AVAILABLE
FOR SALES
UNIT
PRICE
REMAINING
PRJ. VALUE
SH
1. Inizio
6
426.9
2,102
26%
3.3
1,770
2 .Pruklada
6
570.9
2,544
53%
4.0
5,305
3. Chaiyapruk
4
323.9
1,337
17%
4.4
1,022
4. Chollada
2
436.6
1,504
4%
5.0
279
5. Mantana
8
902.9
3,214
38%
6.7
8,108
6. Seewalee
7
623.3
2,191
55%
5.3
6,363
7. Nantawan
4
378.2
755
53%
18.0
7,260
8. Ladawan
2
257.4
280
74%
45.5
9,426
9. 88 Land&Houses
4
317.7
924
27%
8.6
2,162
10. Indy
3
55.4
660
43%
2.1
588
11. Villaggio
2
234.9
1532
89%
2.7
3,710
12. Baan Mai
1
20.3
207
2%
3.6
18
13. Terrace
1
29.9
299
1%
5.0
15
14. Ease
1
5.0
480
53%
1.6
416
15. North
5
13.1
345
27%
2.3
216
16. The Key
2
5.1
595
24%
2.2
316
17. The Room
4
9.6
1093
45%
7.2
3,560
18. Wan Vayla
1
20.2
294
52%
9.2
1,395
19. The Bangkok
1
4.9
468
63%
16.0
4,710
4,636.1
20,824
36%
7.5
56,638
TH
Condo
TOTAL
64
12
Growing new projects launched
Value (Million Baht)
No. of new projects
Projects
50
M.B.
80,000
40
60,000
30
38,740
24 prj.
21 prj.
20
16 prj.
3
10
15 prj.
13
5
2
4
35,000
40,000
24,430
25,680
2,650
4,370
930
20,000
2
3
9
8
2012
2013
2,800 (8%)
3,580 (9%)
14
13
19,760 (51%) 11,820 (34%)
21,780
0
20,380
15,400 (40%)
20,380 (58%)
0
2011
2011
2014(F)
2014(F)
SH+Land
TH
2012
2013
2014(F)
2014(F)
Condo
13
New projects planned to launch 2014
No.
PROJECT NAME
LOCATION
TYPE
SIZE (Rai)
UNIT
UNIT PRICE PRJ. VALUE
LAUNCH
DATE
1
Inizio
Pinklao - Wong Whan (2)
SH
62.0
296
3.4
1,000
Q.1
2
The Landmark
Ekkamai-Raminthra
TH
28.4
245
8.2
2,000
Q.1
3
Pruklada
Phetkasem Sai 4
SH
98.3
450
4.4
1,960
Q.1
4
Villaggio
Rama II
SH
65.0
289
4.2
1,200
Q.1
5
Pruklada
Suvarnabhumi
SH
85.8
418
4.5
1,900
Q.1
6
Inizio
Rangsit Klong 3(2)
SH
60.0
275
3.5
960
Q.1
7
Seewalee
Chiang Rai
SH
57.1
216
4.5
980
Q.1
8
Chaiyapruk
Pinklao - Kanchana
SH
86.4
380
4.8
1,820
Q.2
9
Manthana
Onnuch - Wong Whan 4
SH
94.0
356
7.6
2,710
Q.2
10
Inizio
Chiang Mai
SH
78.1
336
3.9
1,300
Q.2
11
Indy
Bangyai
TH
28.1
300
2.7
800
Q.2
12
333
Riverside
CD
11.4
950
6.8
6,500
Q.2
13
The Key
Charoen Rat
CD
5.9
810
3.7
3,000
Q.2
14
The Room
Charoen Krung
CD
2.1
211
9.5
2,000
Q.2
15
Chaiyapruk
Pinklao Sai 2
SH
9.1
26
7.3
190
Q.2
16
North 6
Chiang Mai
CD
2.5
69
2.5
170
Q.3
17
Seewalee
Khon Khaen
SH
83.9
305
5.9
1,800
Q.3
18
Pruklada
Wong Whan - Hathai Rat
SH
98.1
456
4.4
2,020
Q.3
19
Seewalee
Maha Sarakham
SH
84.7
323
5.2
1,680
Q.3
20
Nantawan
Udonthani
SH
38.4
84
10.2
860
Q.4
21
Norht 7
Chiang Mai
CD
1.6
57
2.6
150
Q.4
1,080.8
6,852
5.1
35,000
Total
2014
SH
TH
CD
No. of prj.
Prj. Value
Q.1
6
1
7
10,000
Q.2
4
1
3
8
18,320
Q.3
3
1
4
5,670
Q.4
1
1
2
1,010
%
29%
52%
16%
3%
No. of prj.
14
2
5
21
Prj. Value
20,380
2,800
11,820
%
58%
8%
34%
35,000
100%
100%
Bangkok
Provincial
No. of prj.
14
7
21
Prj. Value
28,060
6,940
35,000
%
80%
20%
14
Market Shares (Calculated from No. of unit transferred)
Market Share
%
(If measured by value of transfer, our market share should be higher than this)
30%
25%
23.3%
20.4%
19.6%
19.2%
20%
17.1%
17.0%
17.0%
15.3%
15%
13.3%
10%
5.8%
4.0%
5%
4.2%
0.0%
4.4%
4.2%
3.0%
2.4%
2.0%
0.6%
2.0%
0%
0.6%
0.2%
1.6%
2.2%
1.7%
0.7%
0.6%
-5%
2005
2006
2007
2008
SH
2009
CONDO
2010
2011
2012
11M13
TH
15
Backlog and Revenue Recognition
M.B.
Revenue Recognition
Back log
20,000
14,819
15,000
10,000
7,584
13,108
7,486
4,570
5,000
5,590
5,809
3,668
3,212
3,138
0
133
1,299
251
1,742
103
1,608
103
1,575
3,635
3,212
453
Dec'11
Dec'12
Dec'13
Recognise'14
Recognise'15
Recognise'16
453
Recognise'17
SH+Land
TH
Condo
16
Condominium Schedule
No
Project
%
Transfer Q1
1
The Room - Suk. 21
87%
2
North 8 - Chiang Mai
90%
3
The Key - Sathorn Rajapruk
4
The Room - BTS wongwiengyai
5
Wan-Way-La - Kao Tao
6
The Bangkok - Sathorn
7
The Key - Wutthakat
8
The Room - Rama IV
9
The Room - Pan Road
2014
Q2 Q3
Q4
Q1
2015
Q2 Q3
Q4
Q1
2016
Q2 Q3
Q4
10 The Room - Suk. 69
11 The Key- Udomsuk
27%
12 North 1 - Chiang Mai
38%
13 North 2 - Chiang Mai
14 North 3 - Chiang Mai
15 North 4 - Chiang Mai
16 North 5 - Chiang Mai
17 Ease - Rama II
18 333 Riverside
19 The Key - Charoen Rat
20 The Room - Charoen Krung
Develop & EIA
Develop & EIA
21 North 6 - Chaing Mai
22 North 7 - Chaing Mai
Construction period
17
Bond Issuance
•
2013
•
2014
7,000 M.B.
3.0 Yrs.
3.81%
Q2
4,000 M.B.
3.0 Yrs.
3.xx%
Q4
4,000 M.B.
3.0 Yrs.
3.xx%
8,000 M.B.
18
Revenue from Rental Property
M.B.
- Expected Rental
3,500
Revenue growth of 14%
3,000
in 2014 (in P/L)
2,464
2,500
2,157
280
2,000
79
1,500
1,000
2,078
2,184
500
0
2013 (F)
2012(F)
2014 (F)
2013(F)
L&H U.S.A.,Inc.
(100% holding)
L&H Property Co.,Ltd. (60% holding)
L&H Property Co.,Ltd. (60% holding)
L&H U.S.A.,Inc.
(100% holding)
19
Contribution from associated co.
M.B.
4,000
37%
32%
28%
21%
xx%
3,000
2,000
688
2,315
1,000
1,468
1,156
1,594
1,549
2012
3Q13
0
2010
2011
Contribution from Associated Co.
Associated Co.
% holding
(: Million Baht)
LH Property Fund I, II
49.9%
LH Bank
34.2%
Home Pro
30.2%
Quality Houses
24.9%
Quality Construction
21.2%
Starmalls
9.6%
Bangkok Chain Hospital
Others
Total
** Transferred to other L/T investments in Q.2’12
2014(F)
2014(F)
Extra gain from divest assets to LHPF, QHHR
2010
44
150
502
470
13
111
178
0
1,468
2011
2012
3Q13
% of LH's net profit
2014(F)
Profit from divested 3 buildings to LHPF = 515
*
39
525
13
192
234
212
605
807
647
212
593
642
28
94
32
**
49
25
Divested
end
of
Q.1’11
30
0
4
3
1,156
2,282
1,549
9
391
1,123
743
47
3
2,315
Mkt.Value
31 Dec. 13
1,123
5,209
21,246
5,728
804
2,109
36,219
20
Debt Level & Average cost of Debts
Average Cost of Debts
Net debts/Equity
M.B.
60,000
Ratio
0.96
0.84
50,000
0.71
0.55
%
10%
9%
0.80
8%
0.53
7.25%
40,000
34,888
32,603 33,483
30,000
27,140
27,343
28,551
7%
6.75%
30,472
25,504
5.85%
6%
26,019
6.75%
6.00%
5%
20,187
20,000
4.99%
14,909
7.00%
14,617
4.92%
4%
4.37%
4.08%
10,000
4.07%
4.07%
2012
2013
3%
2%
0
2008
2009
Net Debt
2010
2011
Equity
2012
2013
2013(F)
D/E
2008
2009
2010
2011
Avg. Cost of Debt
MLR
21
Share capital & Dividend Information

No. of Shares

Price per share (31/12/13) LH
(31/12/13)
: 10,025 million
LH-F

Market Cap.

Shareholder structure
•
•
•
•
•
(31/12/13)
: Baht 8.95 (Par 1 Bt)
: Baht 8.95 (Par 1 Bt)
: Baht 89,700 million (USD 2,700 million)
: Asavabhokin Family
30.52%
: GIC
16.13%
3Q13
2012
2011
2010
2009
2008
Net profit (Bt million)
4,914
5,636
5,609
3,971
3,908
3,428
EPS (Diluted : Bt)
0.49
0.56
0.56
0.40
0.39
0.35
Dividend per share (Bt)
0.25
0.45
0.40
0.34
0.34
0.27
Dividend paid (Bt million)
2,506
4,510
4,010
3,409
3,409
2,693
Dividend Payout Ratio
82%
80%
71%
86%
87%
79%
22

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