PHD — Interim / Quarterly Report 2017

Aug 16, 2017

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We shape our buildings, thereafter they shape us. Prince Housing & Development Corp.

2511TT

2017H1 Operational Briefing

1

Disclaimer Statement

• This presentation contains forward looking statements which are estimated based on the current status of Prince Housing & Development Corp and general economic conditions. The forward looking statements involve certain risks and uncertainties that could cause actual results to differ materially from those contained in the forward looking statements. Potential risks and uncertainties include such factors as general economic conditions, foreign exchange fluctuations, rising costs of raw materials, competitive products and pricing pressures and regulatory developments.

• Forward-looking statements involve significant risks and uncertainties, should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether or not such results will be achieved.

• Prince Housing & Development Corp. expressly disclaims any obligation to review, update or correct these materials after the date thereof. Prince Housing & Development Corp. may update, amend, supplement or otherwise alter the information contained in any such materials by subsequent presentations, reports, filings, or other means without notice. This presentation may not be stored, copied, distributed, transmitted,

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Prince Housing & Development Corp.

2

Content

▪ Introduction

• Financial Data

• Investment Subsidiaries

• Future Strategy

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Prince Housing & Development Corp.

3

Company Overview

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2017 H1
Ticker
Consolidated
2511 Revenue
3.77 billion
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2015
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Was rated as the top 6%~20% good company of the Corporate Governance Evaluation System.

2011 Capital exceeded NT$10 billion.

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Signed the Taipei City Hall Bus Station BOT contract.
2004
Signed the NTU Dormitory/ NCKU Dormitory BOT contracts.
1997 Invested in hotel business.
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Became publicly traded, listed on Taiwan Stock 1991 Exchange.

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1973
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PHD was established in Tainan City, and the capital was NT$150 million.

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Prince Housing & Development Corp.

4 Overview

Unit: Millions of NT$

Financial Data (Consolidated)

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2017H1 Different 2016H1
M % M YOY M %
Construction in Progress 4,681 9 1,688 56 2,993 6
Land Held for Construction 11,254 21 (1,721) (13) 12,975 25
Building and Land Held for Sale 6,399 12 1,181 23 5,218 10
Prepayment for Land 133 0 (87) (40) 220 0
Others 925 2 (593) (39) 1,518 3
Inventories Subtotal 23,392 44 468 2 22,924 44
Cash and Other Current Assets 9,553 18 1,076 13 8,477 16
Funds and Investments 3,995 8 (366) (8) 4,361 8
Total Assets 53,052 100 942 2 52,110 100
Loans&Bonds 18,660 35 1,166 7 17,494 34
Receipts in Advance 3,827 7 1,872 96 1,955 4
Total Liabilities 29,687 56 1,051 4 28,636 55
Stockholders Equities 23,365 44 (109) (0) 23,474 45
Current Ratio 221.00% 224.80%
Debt Ratio 55.95% 54.95%
Net Debt to E uit 64% 66%
q y
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Prince Housing & Development Corp.

5 Financial Data

Unit: Millions of NT$

Financial Data (Consolidated)

	2017H1	2017H1	Different	Different	2016H1	2016H1	2016Q4	2016Q4
	M	%	M	YOY	M	%	M	%
Operating Revenue	3,765	100	(344)	(8)	4,109	**100 **	12,060	320
Operating Cost	(2,240)	(59)	398	(15)	(2,638)	**(64) **	(8,124)	(216)
Gross Profit	1,525	41	54	4	1,471	36	3,936	105
Operating Expenses	(1,208)	(32)	(13)	1	(1,195)	**(29) **	(2,422)	(64)
Operating Income	317	8	41	15	276	7	1,514	40
Pre-tax Income	363	10	12	3	351	9	1,906	51
Net Income	351	9	41	13	310	8	1,599	42
Earnings per Share	0.22				0.20		0.99
Net Assets Value	14.39				14.46		15.17
Return on Equity	1.50%				1.30%		6.60%

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Prince Housing & Development Corp.

6 Financial Data

Financial Data (Consolidated)

Unit: Millions of NT$

2017H1 Revenue Breakdown

REVENUE %

Others 7.3% Fixed Income 5.8% Hotel 27.9% Construction 31.3% Property 27.7%

INCOME %

Others 2.7% Fixed Income 34.4% Hotel 31.6% Construction 17.2% Property 14.1%

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Segments Property Construction Hotel Fixed Income Others Total Adj. Consolidated
Segment
1,230 1,393 1,241 260 322 4,446 (680) 3,766
Revenue
Revenue (%) 27.7% 31.3% 27.9% 5.8% 7.3% 100.0%
YoY 34.4% -18.1% -7.5% -0.8% 9.9% -1.5% -8.4%
Segment
41 50 92 100 8 291 26 317
Income
Income (%) 14.1% 17.2% 31.6% 34.4% 2.7% 100.0%
EBT Margin 3.3% 3.6% 7.4% 38.5% 2.5% 6.5% 8.4%
YoY -373.3% 22.0% -15.6% 0.0% -61.9% 13.7% 14.9%
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Companies of each segment:

• Property ： Prince Housing & Development Corp. （ 2511TT )

• Construction ： Cheng-Shi Investment Co., Ltd. / Ta-Chen Construction & Engineering Corp. / Cheng-Shi Construction Co., Ltd. / Prince Utility Co., Ltd. etc.

• Hotel ： Time Square International Co., Ltd. / The Splendor Hotel Taichung Co., Ltd. etc.

• Fixed Income ： NTU Dormitory BOT / NCKU Dormitory BOT etc.

Note: The number of income was negative for the same period last year.

• Others ： Prince Property Management Consulting Co., Ltd. / Prince Security Co., Ltd. / Prince Apartment Management Co., Ltd. / Prince Housing Investment Co., Ltd. / Prince Real Estate Co., Ltd. etc.

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Prince Housing & Development Corp.

7 Financial Data

Financial Data (Non-Consolidated)

Unit: Millions of NT$

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Investment Income 2016 2015
Unit: NT$ in Millions Ownership
Breakdown in 2016
Amount % of NI Amount % of NI
Operating Income 1,021 63% 1,606 72%
Total Investment Income (Equity Method) 559 35% 843 38%
Major Components of Investment Income:
Time Square International Co., Ltd. 100% 180 11% 225 10%
Jin Yi Xing Plywood Co., Ltd. 99.65% 142 9% - -
Cheng-Shi Investment Holdings Co., Ltd. 100% 95 6% 243 11%
Prince Housing Investment Co., Ltd. 100% 46 3% 48 2%
Uni-President Development Corp. 30% 43 3% 68 3%
Ming-Da Enterprises Co., Ltd. 20% 32 2% 16 1%
Geng-Ding Co., Ltd. 30% 21 1% 27 1%
Prince Property Management Consulting Co., Ltd. 100% 14 1% 16 1%
Prince Real Estate Co., Ltd. 99.65% - - 330 15%
Total Dividend Income 94 6% 134 6%
Major Components of Dividend Income:
Peisident Eneigy Development Corp. 6% 41 3% 66 3%
Southern Science Joint Develepment Co., Ltd. 10% 22 1% 59 3%
Nantex Industry Co., Ltd. (2108 TT) 2% 13 1% 2 -
Uni-President International Development Corp. 6.63% 9 1% - -
ScinoPharm Taiwan, Ltd. (1789 TT) 3% 7 - 4 -
Net Income 1,609 100% 2,238 100%
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Prince Housing & Development Corp.

8 Financial Data

Financial Data - Real Estate

Residential Project Area

Taipei Branch

(Taipei City\New Taipei City\Taoyuan County) (Hsinchu City\Hsinchu County)

Taichung Branch

(Taichung City\Changhwa City\Nantou County) Tainan Branch

(Tainan City\Kaohsiung City)

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Prince Housing & Development Corp.

9 Financial Data-Real Estate

Financial Data - Real Estate

Residential Project – Northern Taiwan

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SalableValue Sales Year of completion
Project Name Location
(billion) Rate(%) 2017 2018 2019 2020
Prince Hsin Yi New Taipei City 2.98 9% ▲
Prince Fu Ⅲ Taoyuan City 2.02 30% ▲
Shuang Ling Section Taoyuan City 1.01 - ▲
Prince Hua Wei Taipei City 1.8 50% ▲
Ling Ko Li Shing Section New Taipei City 2.52 - ▲
Prince W New Taipei City 1.26 70% ▲
Zhong Chuang Section 222-1 New Taipei City 2.08 - ▲
Total 13.67
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Total Salable Floor Area in 2016: 101,190 m[2]

Prince Housing & Development Corp.

10 Financial Data-Real Estate

Financial Data - Real Estate

Residential Project – Central Taiwan

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SalableValue Sales Year of completion
Project Name Location
(billion) Rate(%) 2017 2018 2019 2020
Prince Yu Ding Taichung City 1.91 5% ▲
W Epoch Taichung City 1.91 30% ▲
Prince Hsin Fu Nantou County 0.61 - ▲
Ping Hsin Section Taichung City 2.44 - ▲
Prince County Nantou County 0.86 82% ▲
Ching Shuei Wu Show Section Taichung City 1.02 - ▲
Total 8.75
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Total Salable Floor Area in 2016: 112,215 m[2]

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Prince Housing & Development Corp.

11 Financial Data-Real Estate

Financial Data - Real Estate

Residential Project – Southern Taiwan

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SalableValue Sales Year of completion
Project Name Location
(billion) Rate(%) 2017 2018 2019 2020
Prince CloudC1(Terrace House) Kaohsiung City 1.62 92% ▲
Prince CloudC2(Condominium) Kaohsiung City 1.77 65% ▲
Prince Jun Fon Huei Tainan City 0.97 42% ▲
Prince Travel Tainan City 0.97 - ▲
Shan Gia Section Tainan City 0.69 - ▲
Prince Feng Yun Tainan City 1.77 - ▲
Prince Xue A (Terrace House) Kaohsiung City 1.94 - ▲
Prince Xue B (Condominium) Kaohsiung City 5.52 - ▲
Jin Hua Section Tainan City 3.02 - ▲
Jin Yi Xing Kaohsiung City 12.55 -
Total 30.82
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Total Salable Floor Area in 2016: 580,023 m[2]

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Prince Housing & Development Corp.

12 Financial Data-Real Estate

Financial Data - Real Estate

Expected Launch Value

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8
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5.37 5.52
4.99 5.00
5
4.34
2.80
2.77
2.17
3
1.63
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2019

2018

2017 2018 Taipei Branch Taichung Branch Tainan Branch

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Unit: Billions of NTD
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13 Financial Data-Real Estate
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Prince Housing & Development Corp.

Financial Data - Real Estate

Expected Launch Value and Area of Land Bank

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45.30
50
Expected Launch Value
38
26.72
(Billions of NT$)
25
8.77
Expected Launch Area
5.78
13
(Ten thousands of
5.31
6.36
square meter)
0 Tainan
Taichung
Taipei
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Total Expected Launch Value: NT$38.86 billion Total Expected Launch Area: 593,800 M[2]

14 Financial Data-Real Estate

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Financial Data

Dividend Policy

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1.5
1.0 1.0
1.0
0.5
0.5 0.3
0.5 1.1
0.8
0.0
1.0
0.3
2011
2012
2013
2014
2015
Expressed in NT$
2016
Cash Dividend Stock Dividend
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Prince Housing & Development Corp.

15 Financial Data-Dividend

Financial Data

Dividend Policy

101% 110% 2.50 80% 83% 1.88 53% 55% 1.25 32% 23% 23% 28% 0.63 2.20 1.54 1.30 1.51 1.38 0.99 0% 0.00 2011 2012 2013 2014 2015 2016

EPS Payout Ratio

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Prince Housing & Development Corp.

16 Financial Data-Dividend

Investment Subsidiaries

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Fixed
Income
& BOT
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Real Estate
Construction
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Prince Housing & Development Corp.

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Investment Subsidiaries

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Ownership %

Special Purpose Vehicle (SPV) ： PDC Chartered period 50 Years

Prince 30% Uni-President PCSC (7-11) PIDC

30% PDC

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30% 20% Prince 30% Uni-President PCSC (7-11) PDC	30% 20% Prince 30% Uni-President PCSC (7-11) PDC	30% 20% Prince 30% Uni-President PCSC (7-11) PDC	30% 20% Prince 30% Uni-President PCSC (7-11) PDC	30% 20% Prince 30% Uni-President PCSC (7-11) PDC
Site Area 16,280 M2 Total Floor Area 144,037 M2 30% PIDC
Project		Bus Station & Parking Area	W Taipei Hotel	Uni-Ustyle Department Store
Floor		1F & B4~B5	8F~31F	B2~7F
Operation mode		Operating	Rent out	Rent out
Proprietor		PDC	Time Square International	PDSC
Ownership%		30%	100%	0%

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18 Investment Subsidiaries-BOT

Investment Subsidiaries

Unit: Millions of NT$

PDC Operation Overview in 2015H1~2017H1

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50% 660
39%
40%
30%
440
25%
30%
20% 523
482
451 220
131
10% 79
52
0% 0
2015H1 2016H1 2017H1
Net Sales Net Income before Tax Gross Profit Margin
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Prince Housing & Development Corp.

19 Investment Subsidiaries-BOT

Investment Subsidiaries

Revenue Sources of PHD ：

• 100% W Hotel Net Income

• 30% Taipei City Bus Terminal BOT Project

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100% Operating Profit 30%Net Income

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pay the rent
PDC
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pay royalties

Time Square International  Management Support  PDC: Lease Floor Area to W Hotel

 PHD: Invest in PDC

• Incentive Fee & Base Fee

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20 Investment Subsidiaries-Hotel

Unit: Millions of NT$

Investment Subsidiaries

Chartered period ： BOT Income Properties 、 NTU 47Y NTU BOT NCKU BOT NCKU 35Y

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Revenue

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NTU BOT
NCKU BOT
530 526 519
500
142 134 128
400
300
200 388 391 391
100
0
2014 2015 2016
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Profit

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205 191 188
225
37 36 32
150
75 168 155 156
0
2014
2015
2016
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2017

2005

2005 2008 NTU 35Y Mar. NTU signed NCKU 23Y Sep. Started Operating May. NCKU signed

2040 2052 NCKU NTU

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Investment Subsidiaries

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Unit: Millions of NT$
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67% 66% 66% 65%

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1,320
66.2%
1,065
985 880
876
65.6%
65.4%
440
117 104
85
2015H1 2016H1 2017H1
Net Sales Net Income before Tax Gross Profit Margin
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22 Investment Subsidiaries-Hotel

Unit: Millions of NT$

Investment Subsidiaries

W Hotel Taipei Revenue Breakdown in Jun. 2017 YTD

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3%
37%
60%
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Room Revenue- 524 F&B Revenue- 326 Other Revenue- 26

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Reference:Tourism Bureau

Prince Housing & Development Corp.

Investment Subsidiaries-Hotel

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Investment Subsidiaries

W Hotel Taipei & Competitor Set in 2017H1

100%

80% 60%

40% 20%

0%

81.16% 75.93% 68.75% 66.44%[71.83%] 65.36% 67.36% 60.34% 1,546 1,366 1,194 877 742 627 649

742 649 376

2,040

1,360

680

0

W Hotel Grand Hyatt Le Meridien Sheraton The Regent The Shangri-La's The Westin Sherwood

Total Revenue

Occupancy Rate

Unit: Millions of NT$ Reference: Tourism Bureau

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Investment Subsidiaries-Hotel

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Investment Subsidiaries

W Hotel Taipei & Competitor Set in 2017H1

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8,000 900
853
6,979 720
6,000 688
6,500
538 540
4,000
420
405 4,069 4,152 4,110 360
3,647 343 3,859
288
2,000
180
160 3,061
0 0
W Taipei Grand Hyatt Le Meridien Sheraton The Regent The Shangri-La's The Westin
Sherwood
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RevPAR

No. of Rooms

Unit: Millions of NT$ Reference: Tourism Bureau

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Prince Housing & Development Corp.

Investment Subsidiaries-Hotel

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Investment Subsidiaries

Tourists Breakdown of W Hotel Taipei by Regions YTD

Jun. 2016 YTD Jun. 2017 YTD

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30%
25%
23%
23% 21%
19%
18%
16%
12%
15% 12% 10%
9% 8%
7%
4% 3%
8% 3% 2%2%
2%
2% 2%
Korea Malaysia [Others]
United Japan
0% Taiwan Singapore
China Hong North Kingdom
America
Kong
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26 Investment Subsidiaries-Hotel

Unit: Millions of NT$

Investment Subsidiaries

Financial Data of the Other Hotels in 2015H1~2017H1

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100% 480
91% 91% 91%
384
80%
65% 65% 64%
288
315
60% 299
266
379 192
357 365
40%
96
47
38
20%
-4
-14
-24 -22
0% -96
2015H1 2016H1 2017H1
Net Sales-Splendor Net Sales-Howard
Net Income-Splendor Net Income-Howard
Gross Profit Margin-Splendor Gross Profit Margin-Howard
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Prince Housing & Development Corp.

27 Investment Subsidiaries-Hotel

Future Strategy

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-
Competitiveness 1
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Strategy
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Vertical integration
of resources to
reduce costs.
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Seeking potential lands
in six major cities or
developing lands near
main traffic networks.
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PHD
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-
1. First time homebuyer
2. Provide upscale
properties for Taiwan
aspirational middle class
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The best developer
in Tainan Group,
enjoying economic
scale.
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Prince Housing & Development Corp.

28 Future Strategy

Tainan Group Members

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Uni- Prince Tainan
President H&D Spinning
1216.tw 2511.tw 1440.tw
Universal
PCSC Tainan
Cement
2912.tw Group
1104.tw
Ton Yi
SPT Nantex
Industrial
1789.tw 2108.tw
9907.tw
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Prince Housing & Development Corp.

29 I ntro

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Prince Housing & Development Corp.

Thank you for your support

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