PHD — Interim / Quarterly Report 2017

Apr 20, 2017

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

2511TT

2016Q4 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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2015
2016
Ticker Consolidated
Revenue
2511
12.06 billion
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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.

Signed the Taipei City Hall Bus Station BOT contract. 2004 Signed the NTU Dormitory/ NCKU Dormitory BOT contracts. 1997 Invested in hotel business.

Became publicly traded, listed on Taiwan Stock 1991 Exchange.

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

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Prince Housing & Development Corp.

4 Overview

Unit: Millions of NT$

Financial Data (Consolidated)

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2016Q4 Different 2015Q4
M % M YOY M %
Construction in Progress 3,691 7 1,234 50 2,457 5
Land Held for Construction 12,537 24 (163) (1) 12,700 23
Building and Land Held for Sale 4,916 10 (917) (16) 5,833 11
Prepayment for Land 133 0 (91) (41) 224 0
Others 994 2 (2) (0) 996 2
Inventories Subtotal 22,271 43 61 0 22,210 41
Cash and Other Current Assets 8,788 17 (1,962) (18) 10,750 20
Funds and Investments 4,198 8 (577) (12) 4,775 9
Total Assets 51,285 100 (3,190) (6) 54,475 100
Loans&Bonds 18,385 36 (296) (2) 18,681 34
Receipts in Advance 1,387 3 (488) (26) 1,875 3
Total Liabilities 26,658 52 (2,643) (9) 29,301 54
Stockholders Equities 24,627 48 (548) (2) 25,175 46
Current Ratio 224.80% 213.17%
Debt Ratio 51.98% 53.79%
Net Debt to E uit 56% 59%
q y
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Prince Housing & Development Corp.

5 Financial Data

Unit: Millions of NT$

Financial Data (Consolidated)

	2016Q4	2016Q4	Different	Different	2015Q4	2015Q4
	M	%	M	YOY	M	%
Operating Revenue	12,060	100	(4,049)	(25)	16,109	100
Operating Cost	(8,124)	(67)	2,809	(26)	(10,933)	(68)
Gross Profit	3,936	33	(1,240)	(24)	5,176	32
Operating Expenses	(2,422)	(20)	302	(11)	(2,724)	(17)
Operating Income	1,514	13	(938)	(38)	2,452	15
Pre-tax Income	1,906	16	(616)	(24)	2,522	16
Net Income	1,599	13	(635)	(28)	2,234	14
Earnings per Share	0.99				1.38
Net Assets Value	15.17				15.5
Return on Equity	6.60%				9.00%

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6 Financial Data

Financial Data (Consolidated)

Unit: Millions of NT$

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16Q4 Revenue Breakdown
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		REVENUE %	REVENUE %
Fixed Income Others		3.9% 4.5%
Hotel			20.5%
Construction				29.6%
Property					41.5%
		INCOME %
Others	0%
Fixed Income		13.9%
Hotel		18.7%
Construction		5.6%
Property					62.0%

Segments	Property	Construction	Hotel	Fixed Income	Others	Total	Adj.	Consolidated
Segment Revenue	5,485	3,920	2,710	519	600	13,234	(1,174)	12,060
Revenue (%)	41.5%	29.6%	20.5%	3.9%	4.5%	100.0%
YoY	-33.4%	-18.9%	-7.3%	-1.1%	-65.5%	-27.5%		-25.1%
Segment Income	834	75	251	187	(2)	1,345	169	1,514
Income (%)	62.0%	5.6%	18.7%	13.9%	-	100.0%
EBT Margin	15.2%	1.9%	9.3%	36.0%	-0.3%	10.2%		12.6%
YoY	-41.1%	-64.8%	-20.1%	-2.1%	-100.3%	-53.1%		-38.2%

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.

• 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

Unit: Millions of NT$

Financial Data (Non-Consolidated)

	2016Q4	2016Q4	Different	Different	2015Q4	2015Q4
	M	%	M	YOY	M	%
Construction in Progress	3,891	9	1,434	58	2,457	5
Land Held for Construction	11,425	26	(343)	(3)	11,768	26
Building and Land Held for Sale	4,975	11	(939)	(16)	5,914	13
Prepayment for Land	134	0	(91)	(40)	225	0
Others	955	2	6	1	949	2
Inventories Subtotal	21,380	49	67	0	21,313	46
Cash and Other Current Assets	4,335	10	(1,101)	(20)	5,436	12
Funds and Investments	7,512	17	(772)	(9)	8,284	18
Total Assets	43,520	100	(2,333)	(5)	45,853	100
Loans&Bonds	15,043	35	148	1	14,895	32
Receipts in Advance	1,013	2	(621)	(38)	1,634	4
Total Liabilities	19,223	44	(1,799)	(9)	21,022	46
Stockholders Equities	24,297	56	(534)	(2)	24,831	54
Current Ratio	224.80%				213.17%
Debt Ratio	44.17%				45.85%
Net Debt to Equity	53% 51%

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Prince Housing & Development Corp.

8 Financial Data

Unit: Millions of NT$

Financial Data (Non-Consolidated)

	2016Q4	2016Q4	Different	Different	2015Q4	2015Q4
	M	%	M	YOY	M	%
Operating Revenue	6,004	100	(2,759)	(31)	8,763	100
Operating Cost	(3,739)	(62)	1,892	(34)	(5,631)	(64)
Gross Profit	2,265	38	(867)	(28)	3,132	36
Operating Expenses	(1,244)	(21)	282	(18)	(1,526)	(17)
Operating Income	1,021	17	(585)	(36)	1,606	18
Pre-tax Income	1,858	31	(589)	(24)	2,447	28
Net Income	1,609	27	(629)	(28)	2,238	26
Earnings per Share	0.99				1.38
Net Assets Value	14.97				15.3
Return on Equity	6.60%				9.00%

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Prince Housing & Development Corp.

9 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.

10 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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11 Financial Data-Real Estate

Financial Data - Real Estate

Residential Project – Northern Taiwan

Project Name	Location	SalableValue (billion)	Sales Rate(%)	Year of Completion	Year of Completion	Year of Completion	Year of Completion
				2017	2018	2019	2020
Prince Hsin Yi	New Taipei City	29.8	8%	▲
Prince FuⅢ	Taoyuan City	20.2	30%	▲
Shuang Ling Section	Taoyuan City	10.1	-		▲
Prince Hua Wei	Taipei City	18.0	50%		▲
Ling Ko Li Shing Section	New Taipei City	25.2	-			▲
Prince W	New Taipei City	12.6	70%			▲
Chung Chuang Section 222-1	New Taipei City	20.8	-				▲
Total		136.7

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Total Salable Floor Area in 2016: 101,190 m[2]

Prince Housing & Development Corp.

12 Financial Data-Real Estate

Financial Data - Real Estate

Residential Project – Central Taiwan

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SalableValue Sales Year of Com letion
p
Project Name Location
(billion) Rate(%) 2017 2018 2019 2020
Prince Yu Ding Taichung City 19.1 5% ▲
Prince County Nantou County 8.6 70% ▲
W Epoch Taichung City 19.1 26% ▲
Ping Hsin Section Taichung City 24.4 - ▲
Prince Hsin Fu Liao Nantou County 6.1 ▲
-
Ching Shuei Wu Show Section Taichung City 10.2 ▲
Total 87.5
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Total Salable Floor Area in 2016: 112,215 m[2]

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13 Financial Data-Real Estate

Financial Data - Real Estate

Residential Project – Southern Taiwan

Project Name	Location	SalableValue (billion)	Sales Rate(%)	Year of completion	Year of completion	Year of completion	Year of completion
				2017	2018	2019	2020
Prince Cloud(C1(Terrace House)	Kaohsiung City	16.2	92%	▲
Prince Cloud(C2 Condominium)	Kaohsiung City	17.7	60%		▲
PrinceJun Fon Huei	Tainan City	9.7	42%		▲
Prince Travel	Tainan City	9.7	-		▲
Shan Gia Section	Tainan City	6.9	-		▲
Prince Feng Yun	Tainan City	17.7	-		▲
Prince Xue(Terrace House)	Kaohsiung City	19.4	-			▲
Prince Xue(Condominium)	Kaohsiung City	55.2	-			▲
Jin Hua Section	Tainan City	30.2	-				▲
Jin Yi Xing	Kaohsiung City	125.5
Total		308.2

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Total Salable Floor Area in 2016: 580,023 m[2]

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Prince Housing & Development Corp.

14 Financial Data-Real Estate

Financial Data - Real Estate

Expected Launch Value

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8.11
11
5.52
8 5.21
4.32
6.01
1.02
1.26
5
1.62
1.91
3
2019
Unit: Billions of NTD
2018
2017
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Taipei Branch Taichung Branch Tainan Branch

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Prince Housing & Development Corp.

15 Financial Data-Real Estate

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
Total Expected Launch Value: NT$38.86 billion
Total Expected Launch Area: 593,800 M2
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16 Financial Data-Real Estate

Prince Housing & Development Corp.

Financial Data - Real Estate

Property Development Overview by Years

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944
1,000 210,000
750 157,500
559
500 105,000
176,240 281
127,153
250 52,500
81,636
Total Sold Area
0 0
No. of Houses Sold
2014 2015 2016
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Expressed in square meters

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17 Financial Data-Real Estate

Financial Data - Real Estate

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Residential Housing Unit Breakdown by Product Categories 2014~2016 年度房屋銷售概況
Unit: Household
6%
11% 27% 2-bedroom 387 90 477
25%
3-bedroom 294 218 554
31%
4-bedroom 56 224 446
2-bedroom
3-bedroom
4-bedroom
Terrace House 123 5 199 2014
Terrace House
Others 1,767 unit
2015
Others 84 5 91
2016
0 150 300 450 600
18 Financial Data-Real Estate Prince Housing & Development Corp.
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Financial Data

Dividend Policy

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1.50
1.00 1.0
1.0
0.50
0.5
0.3
0.5
0.00 0.8 1.1
0.3
1.0
2011
2012
Expressed in NT$
2013
2014
2015
2016
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Cash Dividend Stock Dividend

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Prince Housing & Development Corp.

19 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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20 Financial Data-Dividend

Investment Subsidiaries

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Fixed
Income
& BOT
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Real Estate
Construction
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21

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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22 Investment Subsidiaries-BOT

Unit: Millions of NT$

Investment Subsidiaries

PDC Operation Overview in 2014~2016

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50% 1,320
40% 40%
1,100
40%
31%
880
30%
660
20% 1,074 1,067 981
440
213 221
10% 143
220
0% 0
2014 2015 2016
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Net Sales Net Income before Tax Gross Profit Margin

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Prince Housing & Development Corp.

23 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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24 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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25

Investment Subsidiaries

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Unit: Millions of NT$
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Financial Data of W Hotel Taipei in 2014~2016

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41% 2,640
40% 40%
2,200
40% 2,189 2,156
1,760
1,950
40% 1,320
39%
880
39%
226 216 217 440
39%
2014 2015 2016
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Net Sales Net Income before Tax Gross Profit Margin

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26 Investment Subsidiaries-Hotel

Unit: Millions of NT$

Investment Subsidiaries

W Hotel Taipei Revenue Breakdown in 2016

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3%
38%
59%
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Room Revenue- 1,159 F&B Revenue- 735 Other Revenue- 57

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Reference:Tourism Bureau

Prince Housing & Development Corp.

Investment Subsidiaries-Hotel

27

Investment Subsidiaries

W Hotel Taipei & Competitor Set in 2016

100%

80% 60%

40% 20%

0%

76.91% 78.09% 73.77% 74.24% 66.92% 64.68% 61.74% 3,269 2,697 2,576 1,951 1,550 1,263 1,359

4,080 3,400

2,720 2,040

1,360

680

0

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

Total Revenue

Occupancy Rate

Unit: Millions of NT$ Reference: Tourism Bureau

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Investment Subsidiaries-Hotel

28

Investment Subsidiaries

W Hotel Taipei & Competitor Set in 2016

8,000 6,000 4,000 2,000

0

7,107

405

900 720

853

720 6,917 688 538 540 4,479 420 4,567 4,077 3,866 360 288 3,954 180 160

0

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

RevPAR

No. of Rooms

Unit: Millions of NT$ Reference: Tourism Bureau

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Prince Housing & Development Corp.

Investment Subsidiaries-Hotel

29

Investment Subsidiaries

W Hotel Taipei & Competitor Set in 2014~2016

9,000 6,750 4,500

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7,107

RevPAR

2,250

W Hotel Grand Hyatt Le Meridien Sheraton

The Regent Shangri-La's The Westin

2014 2015 2016

Unit: NT$ Reference: Tourism Bureau

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Investment Subsidiaries-Hotel

30

Investment Subsidiaries

Tourists Breakdown of W Hotel Taipei by Regions

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22%
23% 21% 2015 2016
19%
18%
17%
16%
15% 13%
12%
10%10%
8%
7%
8%
4% 3%
3% 2%2%
2%
2% 2%
Korea Malaysia [Others]
United Japan
0% Taiwan Singapore
China Hong North Kingdom
America
Kong
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31 Investment Subsidiaries-Hotel

Unit: Millions of NT$

Investment Subsidiaries

Financial Data of the Other Hotels in 2014~2016

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72% 960
70% 70% 768
69% 69%
68% 654 666 576
636
66% 66%
66% 777 766 759 384
64%
64% 192
95 91
71
62%
-16 -19
-38
60% -192
2014 2015 2016
Net Sales_Splendor Net Sales_Howard
Net Income_Splendor Net Income_Howard
Gross Profit Margin_Splendor Gross Profit Margin _Howard
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Investment Subsidiaries-Hotel

32

Future Strategy

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-
Competitiveness 1
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Strategy
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Seeking potential lands in
six major cities or
developing lands near
main traffic networks.
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Vertical integration
of resources to
reduce costs.
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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.

33 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.

34 I ntro

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Prince Housing & Development Corp.

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Prince Housing & Development Corp.

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Prince Housing & Development Corp.

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