opportunity day - dcs- · pdf fileresearch and development in new products and markets...

Opportunity dayDecember 9, 2015

Company Profile

Business Group Structure

VISION

To become a leading condominium developer in Thailand which

research and development in new products and markets so-called

strategies.

Goals

2015 – 2019 (5 years) Become 1 of the top 3 condominium developers in Thailand

2015 – 2024 (10 years) Become 1 of the top 5 real estate developers in Thailand

ORIGIN’s Success Story

The Knight I Sukhumvit 107

The Knight II Sukhumvit 107

Knightsbridge Sukhumvit 107

Sense of London Sukhumvit 109

Kensington Sukhumvit 107

Notting Hill Sukhumvit 107

Villa LaSalle Sukhumvit 105

B-Loft Sukhumvit 109

B-Republic Sukhumvit 101/1

Pause A Sukhumvit 107

Pause B Sukhumvit 107

Pause Sukhumvit 103

Pause ID Sukhumvit 107

1 On Nut – Bearing

Project Value =

THB 4,838 mm

2 Bearing - Samutprakarn

Project Value =

THB 4,045 mm


Pause Sukhimvit 115

Tropicana Erawan

The Cabana Samrong

Knightsbridge Sky River Ocean

3 Mhor Chit -

SaphanmaiProject Value =

THB 2,450 mm

Notting Hill Pahol-

Kaset

Knightsbridge Sky City

Saphanmai

Kensington Pahol-Kaset

4 Bang Yai - Bang SueProject Value =

THB 1,510 mm

Notting Hill

Tiwanon-Kaerai

KnightsBridge

Tiwanon (Q2/2016)

5 Laemchabang –

Sriracha

Project Value =

THB 4,830 mm

Knightsbridge The

Ocean Sriracha

Kensington

Laemchabang –

Sriracha Phase 1&2

Notting Hill

Laemchabang –

Sriracha (Q1/2016)

Current Projects

Total Sales

• Transferred

• Backlogs

THB 13,683 mm

THB 8,479 mm

THB 2,273 mm

THB 6,206 mm

As of Q3 2015

PROJECT RECORDS

Summary of our projects

2010 - as of Potential Projects

Q1/2016No. Detail Project Unit Value

1 Completed projects 12 2,087 4,228 MB

2Construction will be

completed within 6 months2 543 1,070 MB

3 Project under construction 5 2,405 6,140 MB

4 Pre-sales projects 3 960 2,245 MB

5 New Launch (Q4/2015) 3 1,026 1,670 MB

6 Potential Projects Q1/2016 3 N/A 3,000-3,500 MB

TOTAL 28 7,021 18,353-18,853 MB

Concept Classic & Elegance Modern Vintage New Generation Eco-friendly

Positioning Up-Scale Mid-range Entry mid-range Entry mid-range

Average Price Range THB 80,000 – 100,000 / sq.m. THB 60,000 – 80,000 / sq.m. THB 50,000 – 70,000 / sq.m. THB 50,000 – 70,000 / sq.m.

Target Buyers

Mature white-collar worker

New successful entrepreneur

New married couple

Mature business owner

(2nd home)

New married couple

White-collar worker

General customer looking for a

vintage

First jobber looking for a

condominium near BTS

Starter young entrepreneur

Engineer working in industrial

Mature blue-collar worker

Local demand

Monthly Salary Range of

Target Group≥ THB 60,000 – 80,000 ≥ THB 40,000 – 60,000 ≥ THB 20,000 – 35,000 ≥ THB 17,000 – 30,000

Total Project Value THB 6,334 mm THB 5,389 mm THB 3,050 mm THB 1,780 mm

Current

Projects

Completed

(12 Projects)



Knightsbridge Sukhumvit 107*










-

Under-

Development

(10 Projects)

Knightsbridge Sky River Ocean*

Knightsbridges Sky City Saphanmai

Knightsbridge The Ocean Sriracha*

Notting Hill Tiwanon-Kaerai

Notting Hill Pahol-Kaset

Pause Sukhumvit 103

Pause Sukhumvit 115


Tropicana Erawan

The Cabana Samrong

Potential Projects

(4 Projects)


Kensington Laemchabang –

1&2

Notting Hill Laemchabang –

- -

Unit Price Starts from THB 2.50 mm/unit Starts from THB 2.00 mm/unitStarts from

THB 1.20 – 1.50 mm/unit

Starts from

THB 1.20 mm/unit

* High-rise condominiumTotal of 26 Projects

Unique Concepts to Capture all Customers Segment

Target Customers

80%

20%

Real Demand Investor

Current Customer

Portfolio

“ORI has been focusing on real demand customers rather than speculators”

White Collar Worker

25 -35 years old

Mature

Business

Owner

30-45 years

old

Source: Company Data

Blue Collar Worker

Industial Areaeg. Chonbuli ,Samutprakarn

25 -35 years old

Foreign Buyer

40%

30%

20%

10%

Leading mover in Greater

Bangkok with high potential to

be upcoming prime location

Diversified portfolio with low-

rise and high-rise

condominium

High profitability

performance with cost

efficiency

Leader in boutique

condominium developer with

unique plan innovation

Strong sale team

strategy & After sale

service

Highly experienced

management team

Core Competency

Leading mover in Greater Bangkok with

high potential to be upcoming prime

location

1

Along sky train station convenient to travel in Central Business District (CBD)

Well-known among local people in Bearing area

Blue Ocean Strategy to avoid intense competitiveness

Extension mass transit area

Industrial Area

Notting Hill Pahol-Kaset


Saphanmai


Green Line Extension

Mochit – Saphan Mai – Khu

Khot

Notting Hill

Tiwanon-Kaerai

KnightsBridge

Tiwanon (Q2/2016)

Purple Line

Bang Yai – Bang

Sue


Pause Sukhimvit 115

Tropicana Erawan

The Cabana Samrong

Knightsbridge Sky River

Ocean

Green Line Extension

Bearing - Samutprakan




Sense of London Sukhumvit








Pause Sukhumvit 103


Green Line

Punnawithi-Bearing

Tropicana Erawan – Walking distance to Honda & Toyota

Factory. Close to Poochaosamingprai

Industrial Estate

AMATA CITY Siam Eastern Industrial Park Hemraj Eastern Seabord (ESIE)

Hemraj Chonburi (CIE) Hemraj Eastern Seabord (Rayong)

Pinthong 1-2

Numerous Potential Customers in the Industrial Area

Blue

Ocean

Strategy

Explore virgin areas and target real demands.

Currently 10% of the total customers are

foreign customers.

(Japanese is 65% of foreign customers)

International Roadshows :

To seek and access demands from international clients

Company Website : Japanese Version

Ranked in one of the top 10 searches on Google in Japan

Blue Ocean Strategy

Company website : Japanese version

Ranked top 10 on Google in Japan

http://originproperty.n

et

Fast revenue recognition from low-rise condominium

Higher margin with cost efficiency from high-rise condominium

With the appropriate diversified portfolio, the Company can recognize revenue continuously with high

margin

Diversified portfolio with low-rise and

high-rise condominium 2

Unit : THB mm Based on historical data from 2011 – Q3/2015 Unit : Months

Portfolio of Origin Group

Low Rise : 42.1%

High Rise : 46.7%

Low Rise : 13.4 Months

High Rise : 21.0 Months

Gross Profit Margin

Y 2011 – Q3 2015

Construction Period

High rise, 7,280

, 46%Low rise,

8,673 , 54%

13

13

12

15

15

21

15

16

14

11

10

0 5 10 15 20 25











Pause Sukhumvit 107

High profitability performance with

cost efficiency

Ranking the gross profit margin and net profit

margin of top 20 real estate developers in housing and

condominium development

SourceSETSMART, as of 30 June 2015

Performance of ORI from 2012 – Q3 2015

ORI’s gross profit margin has been above 40% from 2012. In 9M 2015, the Company

made an impressive gross profit margin at 42.01%, which is number 5 of the top

ranked 20 companies, the leader real estate developer in housing and condominium

development

Due to significant SG&A expenses to support the Company at the growth stage, net

profit margin slightly dropped to 12.57% in 2014. However, the revenue from sale

increase in 9M 2015 as the Company becomes economies of scale, the Company

made net profit margin at 19.36%, ranked the third of the top ranked 20

companies, the leader real estate developer in housing and condominium

development

3

Loyalty program with contractor saving construction cost

Strong bargaining power of furniture, electrical appliance, and sanitary ware

#5

#3

Ranking the net profit of top 20 real estate developers

in housing and condominium development

(9M 2015)

SourceSETSMART, as of 30 Sep. 2015

#13

Leader in boutique condominium developer with

unique plan innovationEach project have unique design and innovative functional unit plan

First developer to offer economical condominium with exclusive design at affordable price

With expertise in unit plan design & construction management, it results in higher saleable area after

construction completion

2-bedroom : 30 sq.m.

Something more for economical

condominium near BTS

First developer to introduce 30-sq.m. 2-

bedroom unit

Innovative functional unit plane

Built-in furniture

customized for

maximum benefits in

limited space

4

Cost Saving Design

Extra space at the

corridor saving

construction cost

2-side window to feel like

corner roomTropicana offers Windmill and

solar cell to support main facility

electricity

Digital door lock with keycard

or password

Strong bargaining power

of furniture, electrical

appliance, and sanitary

ware

Pre-saleAfter Sale

Service

On Schedule

of Unit

Transfer

In-house sale & marketing team

Deep knowledge of the projects

Sale & marketing team in one team for a

better sale success rate

Sale performance is independent from one

sale agent

Low risk of units return from outsourced

agent

Construction management Construction management to monitor quality

and working process of contractors of each

project

Contractor

Highly experienced contractor to transfer units

to clients on schedule

Customer centric

Directly accommodate buyers with a financing

home loan, speeding transfer rate

To provide after-sale services of unit

examination, and interior design consultancy

Condo Agency & Management as

property manager, and Tisa

Living as property agency

The Company has its own property manager

company exclusively only for projects under

Origin Group.

To help clients with rental and re-sale service

Strong sales team strategy &

aftersales services5

Mr. Lucksananoi Punkrasamee

Chairman of the Board of Directors

Managing Director:

SCG Accounting Service Co., Ltd

The Chairman of Accounting Profession

in Bookkeeping Committee

The Chairman of Accounting Profession

in Accounting System Committee

Mr. Sahas Treetipbut

Chairman of the Audit Committee

Audit Committee and Chairman of the

BOD: Officemate PCL

Chairman of the BOD: Thiensurat PCL

Ex-Deputy Managing Director:

Krungthai Bank PCLInternal

Control

Marketing

and Retail

Business

Politics and

Governance

Real Estate

and Land Act

Real Estate, Construction

Management and

Engineering

Business

Administration

and Accounting

Ms. Veena Arunyakasem

Director

Managing Director: One Click (Thailand) Co.,

Ltd., (Turnkey of Shopping Mall Development

and Consulting)

Senior Vice President of Mall & Media

Management department: Eak – Chai

Distribution System Co., Ltd

Air Chief Marshal Bureerat Ratanavanich

Audit Committee

Audit Committee:

Salee Industry PCL

Ex- Audit Committee:

Airport of Thailand PCL

Ex- Deputy Supreme Commander

Mr. Peerapong Jaroon-ek

Chief Executive Officer

Ex-Chief Executive Officer:

I TOWN Holding PCL

(Real estate holding company in Double A Group)

Ex-Project Director

Arun Chaiseri Consulting Engineers Co., Ltd.

Fulfilled BOD Professional Composition with Widely

Extensive Experience in Various Fields6

Mr. Niwat Lamunpandh

Director

Central Land

Classification Committee

Part-time Professor:

Chulalongkorn University

Mr Metha Chanchamcharat

Director

Finance

Business

Development

International Real

Estate

Key financial highlight ORI Performance History

• The revenue from sale and net profit growth continuously from 2012-Q3 2015

• The revenue from sale for 9M 2015 increased from the same period in 2014 about 350% due to the construction of 4 projects completed on Dec 2014 and Mar 2015 as

follow ; Knightsbridge, B.Loft 109, B.Loft 115 and B.Republic

• The net profit 9M 2015 increased from the same period in 2014 about 673% which is more than % growth of revenues due to the revenues from sale increase more than

increasing in fixed cost and fixed expenses

Actual 2014 vs 2015 (period 9 months 2015)

• Total revenue in 9M 2015 increase from the same period in 2014 about 356% due to due to can transfer 4 new project as follow ;

- Knightsbridge and B.Loft 109 : 100% construction completed on Dec 2014

- B.Loft 115 and B.Republic : 100% construction completed on Mar 2015

• Net Profit increase 673%

ORI Return

Q3

ORI’s gross profit margin has been above 40% from 2012. In 9M 2015, the Company made an impressive gross profit margin at 42.01%, which is number 5 of

the top ranked 20 companies, the leader real estate developer in housing and condominium development

Due to significant SG&A expenses to support the Company at the growth stage, net profit margin slightly dropped to 12.57% in 2014. However, the revenue from

sale increase in 9M 2015 as the Company becomes economies of scale, the Company made net profit margin at 19.36%, ranked the third of the top ranked 20

companies, the leader real estate developer in housing and condominium development

% ROE, ROA increase to be 119.35% and 15.22% respectively

Q3

Capital Structure & Leverage Ratios Q3 2015

Y2014 – Q3 2015 the company start construction

for many new projects as follow ;

- Y2014 : B.Loft 115, KNB sky river ocean, VL

- Y2015 Q1, Q2, Q3 : Tropicana, NOT Tiwanon, Pause

Source of fund from Interest baring debt (IBD) is about 60% of

total asset and the deposit from customer + other CL is about

30% of total asset

DE after IPO is about 1 times

IBD after IPO is less than 1 times

Pre-sale 2011-Q3 2015

Pre-sale for 9M 2015 is about 3,862mb

2015 Quarterly Presales

Quarter Total (m Baht)

Quarter 1 808.26

Quarter 2 1,634.81

Quarter 3 1,419.32

Quarter 4 1,300.00

Total 5,162.40

- 2015 Presales target between 5,000 – 5,200 MB.

Active Projects @ Q3 2015

Units Bt m Units Bt m Units Bt m Units Bt m Units Bt mKensington 167.00 300.00 155.00 266.53 153.00 261.89 2.00 4.64 12.00 33.47Notting Hill Bearing 157.00 340.00 149.00 329.00 148.00 325.60 1.00 3.40 8.00 11.00The Knight I 70.00 140.00 67.00 136.31 66.00 134.01 1.00 2.30 3.00 3.69The Knight II 55.00 114.00 49.00 100.67 49.00 100.67 - 0.00 6.00 13.33Knightsbridge 276.00 810.00 248.00 721.15 245.00 711.08 3.00 10.07 28.00 88.85B-Loft 109 171.00 240.00 162.00 221.45 159.00 216.78 3.00 4.67 9.00 18.55B-Loft 115 202.00 295.00 138.00 182.25 131.00 171.23 7.00 11.02 64.00 112.75Knightsbridge Sky River Ocean 460.00 1,430.00 390.00 1,188.62 - - 390.00 1,188.62 70.00 241.38B Republic 318.00 680.00 216.00 442.39 174.00 351.28 42.00 91.11 102.00 237.61Tropicana 363.00 680.00 194.00 343.51 - - 194.00 343.51 169.00 336.49Villa Lasalle 353.00 720.00 306.00 631.40 - - 306.00 631.40 47.00 88.60Notting Hill Tiwanon 180.00 390.00 98.00 203.49 - - 98.00 203.49 82.00 186.51The Cabana 719.00 1,100.00 322.00 468.15 - - 322.00 468.15 397.00 631.85Notting Hill Kaset 196.00 570.00 159.00 418.89 - - 159.00 418.89 37.00 151.11Pause 107 A 78.00 195.00 29.00 68.41 - - 29.00 68.41 49.00 126.59Pause 107 B 78.00 195.00 43.00 102.01 - - 43.00 102.01 35.00 92.99Pause 103 268.00 560.00 118.00 278.03 - - 118.00 278.03 150.00 281.97Pause 115 310.00 540.00 111.00 190.30 - - 111.00 190.30 199.00 349.70Pause iD 201.00 345.00 56.00 91.65 - - 56.00 91.65 145.00 253.35Knightsbridge SkyCitySaphanmai 490.00 1,340.00 449.00 1,215.67 - - 449.00 1,215.67 41.00 124.33Knightsbridge Ocean Sriracha 722.00 2,500.00 252.00 878.70 - - 252.00 878.70 470.00 1621.30TOTAL 5,834.00 13,484.00 3,711.00 8,478.57 1,125.00 2,272.52 2,586.00 6,206.05 2,123.00 5,005.43

ProjectSoldProject Value Revenue Backlog Unsold

2015 Quarterly Launches

- 2015 Launches target 7,345 MB.

- 2015 Launches increase 120% from 2014

- Launch 3 Projects in Q4 2015 >> Kensington Leamchabang1

Kensington Leamchabang2 and Kensington Phapol-Kaset

1,490.001,685.00

2,500.00

1,670.00

0.00

500.00

1000.00

1500.00

2000.00

2500.00

3000.00

Q1'15 (A) Q2'15 (A) Q3'15 (A) Q4'15 (F)

Project Launched 2015

Pause 107 A Pause 107 B

Pause 103 Pause 115

Pause iD Knightsbridge SkyCitySaphanmai

Knightsbridge Ocean Sriracha Kensington laemchabang1

Kensington laemchabang2 Kensington Phapol-Kaset

TOTAL

Quarter UnitsProject Value

(M Baht)

Quarter 1 734 1,490

Quarter 2 691 1,685

Quarter 3 722 2,500

Quarter 4 1,026 1,670

Total 3,173 7,345

Backlog

Total 2,586 Units value of 6,206 MB (As of Q3 2015)

KNB Sky River Ocean,

1,188.62,

19%

TC, 343.51,

5%

VL, 631.40,

10%

NH Tiwanon, 203.49,

3%CB, 468.15,

8%NH Kaset, 418.89,

7%

KNB Sky City, 1,215.67,

20%

KNB The Ocean, 878.70,

14%

Others, 857,614,394.00 ,

14% KNB Sky River Ocean

Tropicana

Villa Lasalle

Notting Hill Tiwanon

The Cabana

Notting Hill Kaset


Knightsbridge Ocean Sriracha

Others

2015 Revenue Recognition

New Project เปิดขาย Q4 / 2015

Project Value : 540 MB.

No. of Unit : 229 Units

Construction Period : Q3’2016 – Q4’2017

Land plot Size : Approximated 1-3-62 rai

New Project เปิดขาย Q4 / 2015

Project Value : 530 MB.

No. of Unit : 399 Units

Construction Period : Q2’2016 – Q3’2017

Land plot Size : Approximated 3-0-55 rai

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