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PHD Annual Report 2020

Apr 20, 2021

52134_rns_2021-04-20_2ae7dfd9-5e3c-4711-a8e7-8ed58894baee.pdf

Annual Report

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We shape our buildings; thereafter they shape us. Prince Housing & Development Corp. F Y20 Annual Results

Security Code:2511TT

�1

Disclaimer Statement

  • This presentation contains forward looking statements which are estimated based

  • Forward-looking statements involve significant risks and uncertainties, should not

  • Prince Housing & Development Corp. expressly disclaims any obligation to

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Prince Housing & Development Corp.

�2

Content

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Prince Housing & Development Corp.

�3

Company Overview

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2015~2019 TOP 6%~20% CG eval. result

2011

The capital exceeded NT$10 billion

2005 Signed The NTU Dorm BOT The NCKU Dorm BOT

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2004

Signed The Taipei City Hall Bus Terminal BOT

1991

Went Public on TWSE 2511.TW

1990 Investment in Hotel business

1973

PHD was established in Tainan City and the capital was NT$150 million.

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Prince Housing & Development Corp.

�4 Overview

Company Overview

Social Progress

  • ü Provide excellent products and services

  • ü Create a healthy workplace environment

  • ü Protection of consumer rights

Economic Growth

  • ü Focus on business management

  • ü Create shareholder rights

  • ü Create job opportunities

  • ü Promote economic development

  • ü Employee salary increase

  • ü Labor safety

  • ü Community feedback

  • ü Caring for society

Environmental Sustainability

  • ü Promote green environmental protection ü Implement energy saving and carbon reduction

  • ü Inventory carbon footprint and water footprint

  • ü Reduce greenhouse gas

Corporate Social Responsibility

  • ü Reduce energy consumption

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�5 Overview

Company Overview

CORPORATE GOVERNANCE IN TAIWAN

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6%~20%

PHD is the only company in the housing & development industry for five consecutive years of Corporate Governance evaluation results in the 6% to 20% rating. We will continue to work hard on ESG issues.

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Keep up the good work 2020 2016 2017 2018 2019

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�6 Overview

Company Overview

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2511TW Ticker 1 NT$ 16.2Billion Capital 2 Total Asset NT$ 52.17Billion 3 Consolidated Rev 4 NT$ 11.96Billion NAV 5 NT$ 14.91

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�7 Overview

Financial Data

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The financial data hereby are based on International Financial Reporting Standards(IFRS) Cumulative consolidated numbers were audited by CPA

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Prince Housing & Development Corp.

�8 Financial Data

Expressed in million of NT dollars

Financial Data (Consolidated)

Balance Sheet 2020 % Variance % 2019 %
Construction in Progress 1,611 3 (2,732) (63) 4,343 8
Land Held for Construction 7,041 13 (555) (7) 7,596 14
Building and Land Held for Sale 7,775 15 597 8 7,178 13
Prepayment for Land 229 0 6 3 223 0
Others 23 0 (555) (96) 578 1
Inventories Subtotal 16,679 32 (3,239) (16) 19,918 36
Cash and Other Current Assets 8,741 17 (813) (9) 9,554 17
Funds and Investments 3,913 8 381 11 3,532 6
Total Assets 52,165 100 (2,573) (5) 54,728 100
Loans&Bonds 14,558 28 (4,177) (22) 18,735 34
Receipts in Advance 917 2 (6) (1) 923 2
Total Liabilities 27,740 53 (2,853) (9) 30,593 56
Stockholders Equities 24,425 47 280 1 24,145 44
Current Ratio 392.59% 265.83%
Debt Ratio 53.18% 55.89%
Net Debt to Equity 37.47% 54.09%

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�9 Financial Data

Expressed in million of NT dollars

Financial Data (Consolidated)

Profit and Loss Statement 2020 % Variance % 2019 %
Operating Revenue 11,963 100 (236) (2) 12,199 100
Operating Cost (9,746) (81) (609) 7 (9,137) (72)
Operating Profit 2,217 19 (845) (28) 3,062 28
Operating Expenses (2,045) (17) 227 (10) (2,272) (18)
Operating Income 172 1 (618) (78) 790 9
Pre-tax Income 789 7 (273) (26) 1,062 10
Net Income 730 6 (209) (22) 939 9
Earnings per Share 0.49 0.59
Net Assets Value 14.91 14.70
Return on Equity 3.00% 3.89%

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�10 Financial Data

Expressed in million of NT dollars

Financial Data (Consolidated)

Cash Flow Statement 2020 Variance 2019
Cash at beginning of the year 5,674 1,706 3,968
Cashflows from Operating Activities 4,552 824 3,728
Interest paid (315) 8 (323)
Cashflows from Investing Activities 520 617 (97)
Cashflows from Financing Activities (5,339) (3,414) (1,925)
Dividend paid (812) 243 (1,055)
Net Increase(Decrease)in Cash (267) (1,973) 1,706
Cash at end of year 5,407 (267) 5,674

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�11 Financial Data

Expressed in million of NT dollars

Financial Data (Consolidated)

Revenue(%)
Segment Information
2020 Breakdown
Segments Property Construction Hotel FID Others Total Adj. Consolidated
Segments
Revenue
6,811 3,290 1,253 497 389 12,240 (277) 11,963
Revenue
(%)

55.65%
26.88% 10.23% 4.06% 3.18% 100%
YOY 25.63% (8.31%) (53.11%) **(5.29%) ** (11.06%) (3.19%)
Segments
Income
572 13 (591) 186 11 191 (19) 172
Income(%)
Income
(%)
299.08% 6.84% (308.80%) 97.05% 5.83% 100%
EBT
Margin

8.40%
0.40% (47.15%) 37.36% 2.87% 1.56% 1.44%
YOY 117.95% (31.18%) (314.05%) (3.12%) **(1.19%) ** (74.84%) (78.27%)

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�12 Financial Data

Expressed in million of NT dollars

Financial Data (Non-Consolidated)

Balance Sheet 2020 % Variance % 2019 %
Construction in Progress 1,630 4 (2,755) (63) 4,385 10
Land Held for Construction 6,393 17 (533) (8) 6,926 16
Building and Land Held for Sale 7,871 21 624 9 7,247 17
Prepayment for Land 229 1 6 3 223 1
Others 1 0 (553) (100) 554 1
Inventories Subtotal 16,124 42 (3,211) (17) 19,335 46
Cash and Other Current Assets 5,351 14 87 2 5,264 13
Funds and Investments 2,705 7 (261) (9) 2,966 7
Total Assets 38,264 100 (3,835) (9) 42,099 100
Loans&Bonds 11,318 30 (4,137) (27) 15,455 37
Receipts in Advance 519 1 (33) (6) 552 1
Total Liabilities 14,061 37 (4,181) (23) 18,242 43
Stockholders Equities 24,203 63 346 1 23,857 57
Current Ratio 515.97% 284.14%
Debt Ratio 36.75% 43.33%
Net Debt to Equity 29.48% 47.54%

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�13 Financial Data

Expressed in million of NT dollars

Financial Data (Non-Consolidated)

Profit and Loss Statement 2020 % Variance % 2019 %
Operating Revenue **7,307 ** 100 1,627 29
5,680
100
Operating Cost **(5,477) ** (75) (1,177) 27 (4,300) (76)
Operating Profit 1,830 25 450 33 1,380 24
Operating Expenses **(1,051) ** (14) 25 (2) (1,076) (19)
Operating Income 779 11 475 156 304 5
Pre-tax Income 941 13 (78) (8) 1,019 18
Net Income 794 11 (159) (17) 953 17
Earnings per Share 0.49 0.59
Net Assets Value 14.91 14.70
Return on Equity 3.00% 3.89%

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�14 Financial Data

Financial Data (Non-Consolidated)

Expressed in million of NT dollars

Cash Flow Statement 2020 Variance 2019
Cash at beginning of the year 4,113 2,010 2,103
Cashflows from Operating Activities 4,634 1,323 3,311
Interest paid (165) 22 (187)
Cashflows from Investing Activities 404 102 302
Cashflows from Financing Activities (4,968) (3,365) (1,603)
Dividend paid (812) 243 (1,055)
Net Increase (Decrease) in Cash 70 (1,940) 2,010
Cash at end of year 4,183 70 4,113

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�15 Financial Data

Financial Data (Non-Consolidated)

Expressed in million of NT dollars

Ownership Note:C

2020
Note:C

2020
hange to IFRS Accounting

2019
hange to IFRS Accounting

2019
(%) Amount ~~Princip~~
% of NI
~~les in 2013~~
Amount
% of NI
Operating Income 779 98% 305 32%
Total Investment Income(Equity Method) 26 3% 628 66%
Major Components of Investment Income
Cheng-Shi Investment Holdings Co., Ltd. 100% 481 61% 230 24%
Prince Property Management Consulting Co., Ltd. 100% 11 1% 20 2%
Geng-Ding Co., Ltd. 30% 3 - 22 2%
Prince Housing Investment Co., Ltd. 100% 34 4% 32 3%
Uni-President Development Co., Ltd. 30% 32 4% 47 5%
Times Square International Holdings Co., Ltd. 100% (439) (55%) 127 13%
Total Dividend Income 67 8% 75 8%
Major Components of Dividend Income
Uni-President international Development Corp. 6.63% 42 5% 47 5%
ScinoPharm Taiwan, Ltd.(1789TT) 3% 6 1% 12 1%
Nantex Industry Co., Ltd.(2108TT) 3% 16 2% 14 1%
Net Income 794 100% 953 100%

Major Profit Contributors Breakdown in 2020

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�16 Financial Data

Financial Data

Dividend Policy

Policy
2016 2017
Cash
Dividend
$1.0
Cash
Dividend
$0.65
2018
Cash
Dividend
$0.65
2019
Cash
Dividend
$0.50
2020
Cash
Dividend
$0.40
The dividend and bonuses of shareholders can be appropriated
with the cumulative distributable earnings, with a minimum of
20% of distributable earnings of the year and the minimum cash
dividend of 30% of the total amount appropriated for dividends
and bonuses of directors shall draw up a proposal for profit
distribution and submit it to the meeting of shareholders for
resolution before distribution.
EPS 2020 Payout Ratio **82% **
0.99 EPS
0.79
EPS
0.77
EPS
0.59
EPS
0.49
2019 Payout Ratio
2018 Payout Ratio
85%
**84% **
2017 Payout Ratio
2016 Payout Ratio
82%
**101% **

2020 dividend distribution plan was proposed and resolved on 2021/03/18 board meeting.

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Financial Data-Dividend

�17

Construction & Real Estate

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�18 Financial Data-Real Estate

Construction & Real Estate

Residential Project Area

Northern Taiwan Taipei City New Taipei City Taoyuan City Hsinchu City Central Taiwan Taichung City Changhua City Nantou County Southern Taiwan Tainan City Kaohsiung City

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�19 Financial Data-Real Estate

Construction & Real Estate

Residential Project Area -Northern Taiwan

Ling Ko Dist. Li Bali Dist. Zhong Chuang Sec. Shing Sec. Prince Hwa-Wei Prince Shinyi

Prince Pine Garden Prince W

Purchase of land in 2021 Total Sales Size 59,000 square meters Prince Housing & Development Corp.

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Financial Data-Real Estate

�20

Construction & Real Estate

Residential Project Area -Northern Taiwan

Project Name **Location ** Salable Value Sales Year of completion Year of completion Year of completion Year of completion Year of completion

(billion)
Rate(%) Before 2021 2021 2022 2023 2024
Prince Shinyi TPH 3.00 76%
Prince Pine Garden TYC 1.01 98%
Prince Hwa-Wei TPE 1.80 9%
Prince W TPH 1.26 97%
Linkou Dist. Li Shing Sec. TPH 2.52
Bali Dist. Zhong Chuang TPH 2.10
Total 11.69

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�21 Financial Data-Real Estate

Construction & Real Estate

Qingshui Dist. Wu-Show Sec.

Residential Project Area -Central Taiwan

Prosperous New World Prince Xian-Heng Beitum Dist.

Prince Holiday Mansion

Purchase of land in 2021 Total Sales Size 59,000 square meters

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Financial Data-Real Estate

�22

Construction & Real Estate

Residential Project Area -Central Taiwan

Salable Value
Sales
Year of completion Year of completion Year of completion Year of completion Year of completion
Project Name **Location **
(billion)
Rate(%) Before 2021 2021 2022 2023 2024
Prince Xian-Heng TXG 1.91 45%
Prince Holiday Mansion NTO 0.86 99%
Prosperous New World TXG 2.44 85%
Qingshui Dist. Wu-Show TXG 1.02
Beitum Dist. Rong-De TXG 2.05
Total 8.28

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�23 Financial Data-Real Estate

Construction & Real Estate

Prince Feng-Yun Shanhua Dist. Shan-Gia Sec. Prince Win2 Anping Dist. Flower-Bo 5 Jin-Hua Sec. Prince Castle B(Condominium) Prince Castle A(Terrace House) Prince Cloud C2(Condominium) Prince Cloud E

Residential Project Area -Southern Taiwan

Purchase of land in 2021 Total Sales Size 200,000 square meters Prince Housing & Development Corp.

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Financial Data-Real Estate

�24

Construction & Real Estate

Residential Project Area-Southern Taiwan

Pt N **Lti ** Salable Value Sales Year of completion Year of completion Year of completion Year of completion Year of completion
rojec ame **ocaon **
(billion)
Rate(%) Before 2021 2021 2022 2023 2024
Flower-Bo 5 TNN 2.15 90%
Prince Win2 TNN 1.00 98%
Prince Castle A(Terrace House) KHH 1.94 23%
Prince Feng-Yun TNN 1.77 76%
Prince Castle B(Condominium) KHH 5.52 55%
Prince Cloud E TNN 2.04
Shanhua Dist. Shan-Gia Sec. TNN 0.69
Anping Dist. Jin-Hua Sec. TNN 3.02
Jin Yi Xing Area KHH 10.50
Total 28.63

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�25 Financial Data-Real Estate

Construction & Real Estate

Expressed in billion of New Taiwan dollars

Expected Launch Value and Year

Northern Taiwan

Central Taiwan

Southern Taiwan

Prince Housing & Development Corp.

�26 Financial Data-Real Estate

Construction & Real Estate

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Expressed in million of New Taiwan dollars

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Revenue

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Pre-tax Profit

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�27 Financial Data-Real Estate

Investment Subsidiaries

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�28

Investment Subsidiaries

BOT Income PropertiesNTU BOT NCKU BOT

Chartered periodNTU 47Years NCKU 35Years

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Expressed in million of NT dollars

Revenue Pre-tax Profit

2021

2005 2008 NTU 31 Years Mar. NTU signed Sep. Started NCKU 19 Years May. NCKU signed Operating

2040 2052

NCKU NTU

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�29 Investment Subsidiaries-Fixed Income Property

Investment Subsidiaries

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Special Purpose Vehicle(SPV)PDC Chartered period 50 Years

30%

Site Area 16,280 M[2 ] Total Floor Area 144,037 M[2]

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20%
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Ownership % Prince 30% Uni_President PCSC (7-11) PIDC

Project Bus Station &
Parking Area
W Taipei Hotel Uni-Ustyle
Department Store
Floor 1F & B4~B5 8F~31F B2~7F
Operation mode Operating Rental Rental
Proprietor PDC Times Square Int’l PDSC
Ownership% 30% 100% 0%

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�30 Investment Subsidiaries-BOT

Investment Subsidiaries

PDC Operation 2018~2020 Expressed in million of NT dollars 33% ~~33%~~ 1,000 32% 800 32% 600 30% ~~959 973~~ 856 400 29% 29% ~~173 195~~ 136 200 27% 0 2018 2019 2020 Gross Profit Margin Net Sales Net Income before Tax

Expressed in million of NT dollars

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�31 Investment Subsidiaries-BOT

Investment Subsidiaries

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�32

Investment Subsidiaries

: PHD Recognizes Revenue from l 100% W Hotel Net Income l 30% Taipei City Bus Terminal BOT Project

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100% Operating Profit 30%Net Income

pay royalties pay the rent PDC Times Square International l Management Support l PDC -Lease Floor Area to W Hotel l Incentive Fee & Base Fee l PDC- Revenue Base

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�33 Investment Subsidiaries-Hotel

Investment Subsidiaries

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Expressed in million of NT dollars
W Hotel Taipei in 2018~2020 Financial data
50% 2,000
1,939
1,865 42%
1,600
39%
38%
1,200
25%
800
726
400
13%
191 168
0
0%
(403)
-400
-13% (11%) -800
2018 2019 2020
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Expressed in million of NT dollars

Gross Profit Margin Net Sales Net Income before Tax

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�34 Investment Subsidiaries-Hotel

Investment Subsidiaries

W Hotel Taipei Revenue in 2020 in BU %

Expressed in million NT dollars

380 million 322 million 24 million

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52% 44% 4%
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FB Revenue Room Revenue Others Revenue The Kitchen Table� YEN 405 rooms Spa & Fitness WET Bar� WOODBAR� YEN Bar Meetings� Weddings

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�35 Investment Subsidiaries-Hotel

Investment Subsidiaries

Comparison of W Hotel Taipei and Competitors

Expressed in NT dollars

Yearly Accumulative Data NBR 2020 2020 2020 2019 2019 2019 Variance Variance Variance
RMS OCC ADR REVPAR OCC ADR REVPAR OCC ADR REVPAR
W Taipei 405 28.65% 6,890 **1,974 ** 83.47% 8,783 7,332 (65.7%) (21.6%) (73.1%)
Le Meridien 160 29.63% 6,616 1,960 81.86% 8,998 7,366 (63.8%) (26.5%) (73.4%)
Humble House 232 39.39% 3,965 **1,582 ** 81.63% 6,376 6,376 (51.1%) (37.8%) (69.6%)
Grand Hyatt Taipei 850 21.48% 4,911 **1,055 ** 72.94% 6,334 6,334 (70.6%) (22.5%) (77.2%)
Regent Taipei 538 44.16% 4,203 **1,856 ** 81.27% 5,666 5,666 (45.7%) (25.8%) (59.7%)
Shangri-La’s Far Eastern Plaza 420 23.98% 5,086 **1,220 ** 72.50% 6,119 6,119 (66.9%) (16.9%) (72.5%)
Sheraton Grand Taipei 688 28.55% 3,543 **1,011 ** 73.98% 5,087 Ta (61.4%) (30.4%) (73.1%)
Taipei Marriott 468 32.75% 4,684 **1,042 ** 56.12% 5,907 5,907 (60.3%) (20.7%) (68.6%)
Total 3,761 31.07% 4,987 **1,348 ** 74.23% 6,363 6,363 **(61.4%) ** (26.00%)
(71.5%)

Reference:Tourism Bureau

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�36 Investment Subsidiaries-Hotel

Investment Subsidiaries

Tourists Breakdown of W Hotel Taipei by Regions

Reference:Tourism Bureau

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�37 Investment Subsidiaries-Hotel

Investment Subsidiaries

New Expansion Plan- Hilton Tapestry

: PHD Recognizes Revenue l 100% Net Income l 175 Rooms

l Open in December 2020

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100% Operating Profit

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pay royalties

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Times Square International Stays

pay the rent

Fubon Life

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�38 Investment Subsidiaries

Investment Subsidiaries

Expressed in million of NT dollars

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Expressed in million of NT dollars
Others in 2018~2020 Financial data
65% 65% 800
65% 65%
64% 640
64%
63% 480
760
732
62% 320
520
490 497
429
160
81
61%
10
0
(19) (29) 60%
(39)
-160
(129)
2018 2019 2020
Gross Profit Margin_Splendor Gross Profit Margin _Howard Net Sales_Splendor
Net Sales_Howard Net Income_Splendor Net Income_Howard
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�39 Investment Subsidiaries-Hotel

Future Strategy

CSR We will continue to work Strategy hard on CSR issues Seeking potential lands in six big cities and developing land near main traffic networks Target group First-time homebuyer Provide upscale properties to Taiwan aspirational middle class

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Competitiveness-2 The best developer in Tainan Group;enjoying economic scale Competitiveness-1 Vertical integration of resources to reduce costs

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�40 Future Strategy

Tainan Group Members

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Uni-
Tainan
PCSC
President
Spinning
2912.tw
1216.tw
1440.tw
Prince
Tait
Nantes TTET UCC
H&D
5902.tw
2108.tw 1232.tw 1104.tw
2511.tw
Ton Yi
SPT Uni -PSG
Industrial
1789.tw 2855.tw
9907.tw
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�41 intro

Prince Housing & Development Corp. (2511TT/2511TWO)

Please visit Investor Relation website http://www.prince.com.tw/finance.asp Please contact us at [email protected] [email protected] [email protected] +886 2 2758 9599

21F.,No.11,Songgao Rd.,Sinyi Dist.,Taipei City,110 Taiwan

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Prince Housing & Development Corp.

�42

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Prince Housing & Development Corp.
Thank you for your support
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Prince Housing & Development Corp.

�43