SPALI Opportunity Day February 2010 0 Executive Summary Highest - - PowerPoint PPT Presentation

SPALI Opportunity Day

February 2010

Supalai Public Company Limited

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Executive Summary

• Highest GPM (44%) and NPM (26%) in industry
• Record-high 12.2 billion Baht sales contracted in 2009
• Record-high 9.7 billion Baht revenue in 2009
• 16.8 billion Baht backlog to be realized as revenue between 2010-2012
• Land bank and ongoing project worth 32.4 billion Baht to sustain sales growth

2

Property Market 2009 Recap

• Residential market shrunk by 10%
• 59,085 units sold in 2009 (65,653 units sold in 2008)
• 57,604 units launched in 2009 (67,791 units launched in 2008)
• Apparent market consolidation
• Market share of top 8 developers rose from 34% in 2008 to 49% in 2009
• Access to loans is key obstacle for small developers
• Large developers becoming more integrated
• Every large developer developing all types of residential products
• Every large developer expands onto every market segmentation

Source: Agency for Real Estate Affairs

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4,804 5,358 5,960 7,285 2,164 2,122 3,341 4,881 15,000 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 2006 2007 2008 2009 2010 (T) High Rise Low Rise Target

Sales Contract Performance & Target

12,166 Million Baht

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5,925 9,368 11,000 7,505 5,790 3,506 2,000 4,000 6,000 8,000 10,000 12,000 2008 2009 2010 (T) 2010 2011 2012 Revenue Recognized Revenue Target Backlog

Revenue & Backlog (The Company Only)

68% of target secured Total Backlog = 16,801 Million Baht Million Baht

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SPALI Expansion Strategy

Current Platform Geographical Expansion Vertical Expansion

Upper Low to Upper Middle Income Condo in BMR Lower Middle to Upper Middle Income Detached House and Townhouse in BMR

Customer Segmentation Low Mid High

Upper Low to Middle Income Condo in Phuket and Hadyai Middle to Upper Middle Income Housing in Phuket, Hadyai, Khonkaen and Chiangmai BOI Condo in BMR BOI Housing in BMR Lower High Condo in Inner BKK High Rise Low Rise

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For the year ended 31 December (Million Baht) 2009 2008 Change MB. % Total Revenues 9,690 6,242 3,449 55% Revenues from Sale on Real Estate 9,438 5,998 3,441 57% Gross Margin (%) 44% 39%

• Selling and Administrative Expenses

575 546 30 5% % S&A to Total Revenues 6% 9%

• Earning before Tax

3,584 1,778 1,806 102% % EBT to Total Revenues 37% 28%

• Corporate Tax

1,085 691 394 57% % Effective Corporate Income Tax Rate 30% 39%

• Net Profit

2,476 1,069 1,407 132% Net Profit Margin (%) 26% 17%

• Basic Earnings Per Share (Baht)

1.54 0.65 0.89 137%

Consolidated Income Statement

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(Million Baht) 2009 2008 Change MB. % Total Assets 15,190 13,473 1,717 13% Loan from Financial Institutions 3,360 4.982 (1,622) (33%)

• Project Loan

2,129 3,221 (1,092) (34%)

• Secured Debenture

997 998 (1) 0%

• Other

234 763 (529) (69%) Deposits & Advances Received From Customers 1,822 1,705 117 7% Total Liabilities 7,368 8,183 (814) (10%) Total Shareholder's Equity 7,821 5,291 2,531 48% Issued and Paid-up Share Capital 1,717 1,717

• 0%

Consolidated Balance Sheet

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Remark : Debt Includes Deposits & Advances Received From Customers Net Gearing = (Interest Bearing Debt – Cash) / Equities

2009 2008

Net Gearing (%) 37% 92% D/E (Times) 0.94 1.55 Net BV Per Share (Baht) 4.56 3.08 Interest Coverage Ratio (Times) 40 18 ROE annualized (%) 32% 20% ROA annualized (%) 16% 8%

Financial Ratios (Consolidated)

9 Year DPS (Baht/Share) Payout Ratio Yield

2004 0.20 51% 7.46% 2005 0.25 49% 8.22% 2006* 0.27 49% 7.71% 2007* 0.25 48% 6.94% 2008* 0.30 44% 14.42% 2009* (Interim) 0.25 n/a n/a Remark : Dividend payment policy is to pay approximately 45% of net income * The company began paying interim dividend in 2006

Dividend Payout

10 Project Type Project Value Backlog Remaining Project Value Units Million Baht Million Baht Million Baht Condominium - Completed 8,644 21,879 522 2,141 Condominium - Under Construction 9,455 18,498 13,870 4,081 Detached House 6,253 20,813 1,083 6,325 Townhouse 3,805 10,136 1,326 1,917 Grand Total 28.157 71,326 16,801 14,464

Remark : Remaining value of detached house and townhouse includes complete, under construction and to-be-constructed houses

Ongoing Projects Status (31Dec09)

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Remark :

• The company has land acquisition budget of 3,500 million Baht for 2010 to acquire land for project

launches in 2010 and beyond

• The company spent 1,905 million Baht on land acquisition in 2009

Project Type New Project Launch 2010 Land Bank as of 31Jan10

• No. of Project

Project Value

• No. of Project

Project Value High Rise 5 9,000 4 7,480 Low Rise 10 6,000 13 10,490 Total 15 15,000 17 17,970

Project Launch Plan

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Supalai River Resort

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Supalai River Resort (2)

Supalai River Resort

14 Location Project Type Rai Acre Project Value 1.) Phaholyothin 54/1 Detached House 11 5 200 2.) Phaholyothin 50 Detached House 37 17 620 3.) Ramindra Detached House 29 13 560 4.) Phuket Detached House 37 17 600 5.) Laksi Detached House 34 15 640 6.) Lamlukka Detached House 55 25 800 7.) Phathumthani Detached House 65 30 980 8.) Chiangmai Detached House 62 28 1,000 9.) Ratchapruek-Bangbuathong Detached House 160 73 1,900 10.) Rama II Detached House 169 77 2,090 11.) Saimai Detached House 15 7 290

Land Bank (1)

15 Location Project Type Rai Acre Project Value 12.) Nonthaburi Townhouse 25 11 400 13.) Srinakarin Townhouse 15 7 410 14.) Rama III Condominium 3 1 600 15.) Lasal Condominium 12 5 1,500 16.) Petchkasem Condominium 6 3 1,580 17.) Charoennakorn Condominium 14 6 3,800 Total 749 340 17,970

Land Bank (2)

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