PHD — Interim / Quarterly Report 2019

Sep 10, 2019

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We shape our buildings ; thereafter they shape Prince Housing & Development Corp. 2019H1 Annual Results

Security Code:2511TT

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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.

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Content

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Prince Housing & Development Corp.

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Company Overview

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Prince Housing & Development Corp.

�4 Overview

Company Overview

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Total Asset
NTS
NAV
��������
55.97Billion
$14.69
2511TW
Consolidated
Capital
Revenue
NT$
NT$
16.2Billion
6.106Billion
Prince Housing & Development Corp.
2019H1 Financial Date
Consolidated
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Prince Housing & Development Corp.

�5 Overview

Expressed in million of NT dollars

Financial Data (Consolidated)

	2019H1 Variance 2018H1	2019H1 Variance 2018H1	2019H1 Variance 2018H1	2019H1 Variance 2018H1	2019H1 Variance 2018H1	2019H1 Variance 2018H1
	M	%	M	%	M	%
Construction in Progress	4,466	8	(1,692)	(27)	6,158	12
Land Held for Construction	8,266	15	(1,650)	(17)	9,916	19
Building and Land Held for Sale	6,702	12	1,609	32	5,093	10
Prepayment for Land	282	1	95	51	187	0
Others	944	2	(176)	(16)	1,120	2
Inventories Subtotal	20,660	37	(1,814)	(8)	22,474	43
Cash and Other Current Assets	10,140	18	(143)	(1)	10,283	20
Funds and Investments	3,819	7	12	0	3,807	7
Total Assets	55,967	100	3,343	6	52,624	100
Loans&Bonds	19,273	34	(2,327)	(11)	21,600	41
Receipts in Advance	861	2	(495)	(37)	1,356	3
Total Liabilities	32,131	57	3,043	10	29,088	55
Stockholders Equities	23,835	43	300	1	23,535	45
Current Ratio	323.68%				186.1%
Debt Ratio	57.41%				55.28%
Net Debt to Equity	57%				76%

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Note:Change to IFRS Accounting Principles in 2013

Prince Housing & Development Corp.

�6 Financial Data

Expressed in million of NT dollars

Financial Data (Consolidated)

	2019H1 Variance 2018H1	2019H1 Variance 2018H1	2019H1 Variance 2018H1	2019H1 Variance 2018H1	2019H1 Variance 2018H1	2019H1 Variance 2018H1
	M	%	M	%	M	%
Operating Revenue	**6,106 **	100	2,129	54	3,977	100
Operating Cost	**(4,417) **	(72)	(1,776)	67	(2,641)	(66)
Operating Profit	1,689	28	353	26	1,336	34
Operating Expenses	**(1,126) **	(18)	(149)	15	(977)	(25)
Operating Income	563	9	204	57	359	9
Pre-tax Income	638	10	135	27	503	13
Net Income	579	9	110	23	469	12
Earnings per Share	0.36				0.3
Net Assets Value	14.5				14.5
Return on Equity	2.5%				2%

Note:Change to IFRS Accounting Principles in 2013

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�7 Financial Data

Financial Data (Consolidated)

Expressed in million of NT dollars

Segment Information Y2018 Breakdown
	Segments	Property	Construction	Hotel	Fixed Income	Others	Total	Adj.	Consolidated
Revenue(%)	Segments Revenue	2,893	1,622	1,305	260	233	6,313	(207)	6,106
	Revenue (%)	45.8%	25.7%	20.7%	4.1%	3.7%	100%
	YOY	76.8%	55.7%	1.1%	3.6%	(24.1%)	39.5%
	Segments Income	266	26	134	101	10	537	26	563
	Income (%)	49.6%	4.7%	24.9%	18.8%	2%	100%
Income(%)
	EBT Margin	9.2%	1.6%	10.3%	38.8%	4.2%	8.2%		9.2%
	YOY	123.5%	13%	44.1%	(1.9%)	28.6%	(0.9%)		56.8%
	Companies of each segment: • Property�Prince Housing & Development Corp.�2511TT ) / Prince Real Estate Co. • 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. etc.

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Prince Housing & Development Corp.

�8 Financial Data

Financial Data

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1.75
Dividend Policy
1.51
1.38 1.5
1.3
1.25
0.99
1.1 101%
0.79 1
0.77
1
0.8 0.75
82% 84%
80%
0.65 0.65
0.5
0.3 53%
0.25
23%
0
2013 2014 2015 2016 2017 2018
EPS Cash Dividend Payout Ratio
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Prince Housing & Development Corp.

�9 Financial Data-Dividend

Construction & Real Estate

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�10 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 Changhwa City Nantou County Southern Taiwan Tainan City Kaohsiung City

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�11 Financial Data-Real Estate

Construction & Real Estate

Ling Ko Dist. Li Bali Dist. Zhong Chuang Sec. Shing Sec. Prince Hua-Wei Prince Shinyi Prince Fu III Prince Song-Fu PrinceW Purchase of land in 2019 Total Sales Size 80,000 square meter Prince Housing & Development Corp.

Residential Project Area -Northern Taiwan

Financial Data-Real Estate

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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
		(billion)	Rate(%)		Before 2019	2019	2020	2021
Prince Shinyi	TPH	3.00	45%
Prince Fu III	TYC	2.02	95%
Prince Song-Fu	TYC	1.01	25%
Prince Hua-Wei	TPE	1.80	10%
Prince W	TPH	1.26	70%
Linkou Dist. Li Shing Sec.	TPH	2.52
Bali Dist. Zhong Chuang Sec.	TPH	2.10
Total		13.71

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Prince Housing & Development Corp.

�13 Financial Data-Real Estate

Construction & Real Estate

Qingshui Dist. Wu-Show Sec. W Epoch Taiping Dist. Ping-Hsin Sec. Prince Xian-Heng Prince Hsinfuliao Prince County

Residential Project Area -Central Taiwan

Purchase of land in 2019 Total Sales Size 85,000 square meter

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Financial Data-Real Estate

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Construction & Real Estate

Residential Project Area -Central Taiwan

Pt N	Lti	Salable Value	Sales		Year of completion	Year of completion	Year of completion	Year of completion
rojec ame	**ocaon **	(billion)	Rate(%)		Before 2019	2019	2020	2021
Prince Xian-Heng	TXG	1.91	10%
W Epoch	TXG	1.91	65%
Prince Hsin-Fuliao	NTO	0.61	93%
Prince County	NTO	0.86	97%
Taiping Dist. Ping-Hsin Sec.	TXG	2.44
Qingshui Dist. Wu-Show Sec.	TXG	1.02
合計		8.75

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�15 Financial Data-Real Estate

Construction & Real Estate

Residential Project Area -Southern Taiwan

Prince Feng-Yun

Shanhua Dist. Shan-Gia Sec. Prince Win2

Anping Dist. Prince Jun Fon Huei Jin-Hua Sec.

Prince Xue A(Terrace House) Prince Sue B(Condominium) Prince Cloud C1(Terrace House) Prince Cloud C2(Condominium) Prince Cloud E

Purchase of land in 2019

Total Sales Size 600,000square meter Prince Housing & Development Corp.

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Financial Data-Real Estate

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Construction & Real Estate

Residential Project Area-Southern Taiwan

Pt N	**Lti **	Salable Value	Sales		完⼯年度	完⼯年度	完⼯年度	完⼯年度
rojec ame	**ocaon **	(billion)	Rate(%)		Before 2019	2019	2020	2021
Prince Cloud C1(Terrace House)	KHH	1.70	100%
Prince Cloud C2(Condominium)	KHH	1.80	100%
Prince Jun Fon Huei	TNN	1.00	98%
Prince Win2	TNN	1.00	79%
Prince Xue A(Terrace House)	KHH	1.94
Prince Feng-Yun	TNN	1.77
Prince Sue B(Condominium)	KHH	5.52
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
合計		30.98

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�17 Financial Data-Real Estate

Construction & Real Estate

Expected Launch Value and Year

Expressed in billion of New Taiwan dollars

Taipei Branch Taichung Branch Tainan Branch

Prince Housing & Development Corp.

�18 Financial Data-Real Estate

Construction & Real Estate

Construction Operation 2017H1~2019H1Y

Expressed in million of New Taiwan dollars

Revenue

Profit

147

1,622

1,186 1,027

103 87

Ta-Chen CONST. Cheng-Shi CONST.

Prince Utlilty

• �19 Financial Data-Real Estate

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Prince Housing & Development Corp.

Investment Subsidiaries

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Investment Subsidiaries

Chartered period 「 BOT Income Properties ︾ NTU 47Y NTU BOT NCKU BOT Expressed in million of NT dollars NCKU 35Y NCKU BOT NTU BOT 194 186 519 512 506 188 2019 2005 2008 2040 2052 NTU 33Y Mar. NTU signed NCKU NTU Sep. Started Operating NCKU 21Y May. NCKU signed

Expressed in million of NT dollars

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�21 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	Rent out	Rent out
Proprietor	PDC	Time Square int’l	PDSC
Ownership%	30%	100%	0%

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�22 Investment Subsidiaries-BOT

Investment Subsidiaries

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PDC Operation 2017H1~2019H1Y Expressed in million of NT dollars
30% 30% 30% 500
25%
400
23%
300
15%
464 466
451
200
8%
73 79 100
52
0% 0
2017H1 2018H1 2019H1
Gross Profit Margin Net Sales Net Income before Tax
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Expressed in million of NT dollars

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�23 Investment Subsidiaries-BOT

Investment Subsidiaries

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Investment Subsidiaries

： PHD Recognizes Revenue 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 Time 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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�25 Investment Subsidiaries-Hotel

Expressed in million of NT dollars

Investment Subsidiaries

W Hotel Taipei in 2017H1~2019H1 Financial data

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1,000
944
924
877 800
50%
47% 46% 47%
600
35% 400
200
88 93 79
10% 0
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2017H1 2018H1 2019H1

Gross Profit Margin Net Sales Net Income before Tax

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Investment Subsidiaries

W Hotel Taipei in 2019H1 Revenue in BU %

Expressed in million NT dollars

36% 3% 61% FB Revenue Room Revenue Others Revenue 334 million 578 million 32 million

Reference:Tourism Bureau

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�27 Investment Subsidiaries-Hotel

Investment Subsidiaries

W Hotel Taipei in 2019H1 Competitor Set Results

Expressed in NT dollars

Dec2018YTD		NBR	2019	2019	2019	2018	2018	2018	Variance	Variance	Variance
12⽉2018年累計		RMS	OCC	ADR	REVPAR	OCC	ADR	REVPAR	OCC	ADR	REVPAR
W Taipei		405	78.87%	8,650	**6,822 **	78.02%	8,358	6,521	1.09%	3.5%	4.6%
Le Meridien		160	80.93%	9,078	**7,347 **	76.94%	8,554	6,582	5.19%	6.13%	11.6%
Humble Housse		232	81.62%	6,407	**5,229 **	74.19%	6,049	**4,488 **	10.01%	5.91%	16.5%
Grand Hyatt Taipei		853	69.74%	6,053	**4,222 **	70.04%	5,940	**4,335 **	(0.43%)	1.9%	1.5%
Regent Taipei		538	79.79%	5,494	4,383	77.9%	5,565	4,161	2.43%	(1.26%)	1.1%
Far Eastern Shangri-la		420	74.36%	6,184	**4,598 **	57.68%	6,790	**3,917 **	**28.92% **	(8.94%)	17.4%
Marriott Taipei		468	53.66%	5,951	**3,193 **	68.77%	6,147	**4,228 **	(21.98%)	(3.19%)	(24.5%)
Sheraton		688	76.27%	4,932	**3,761 **	86.63%	5,190	**4,496 **	(11.96%)	(4.97%)	(16.3%)
Total		3,764	73.06%	6,226	**4,549 **	67.47%	6,278	4,236	8.29%	(0.83%)	7.4%

Reference:Tourism Bureau

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�28 Investment Subsidiaries-Hotel

Investment Subsidiaries

Tourists Breakdown of W Hotel Taipei by Regions

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�29 Investment Subsidiaries-Hotel

Investment Subsidiaries

Expressed in million of NT dollars

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Others in 2017H1~2019H1 Financial data
100% 600
91% 90% 91%
480
75%
360
585 58% 586 58% 569 59%
50% 240
266
220 231 120
25%
0
-22 -14 -20 -17
-37 -28
-120
2017H1 2018H1 2019H1
Gross Profit Margin_Splendor Gross Profit Margin _Howard
Net Sales_Splendor Net Sales_Howard
Net Income_Splendor Net Income_Howard
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�30 Investment Subsidiaries-Hotel

Future Strategy

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Compe&&veness1
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Compe&&veness2
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Seeking'poten<al' Ver<cal'integra<on'of' lands'in'six'big'ci<es' resources'to'reduce' or'developing'land' costs' near'main'traffic' networks'

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Strategy
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Target'buyer
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FirstD<me'''' The'best'developer' homebuyer' in'Tainan'Group' Provide'upscale' enjoying'economic' PHD proper<es'for'Taiwan' scale aspira<onal'middle' class''

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Future Strategy

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Tainan Group Members

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Uni- Prince Tainan
President H&D Spinning
1216.tw 2511.tw 1440.tw
Universal
Tainan
PCSC
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.

�32 I ntro

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

Please visit Investor Relation website

http://www.prince.com.tw/finance.asp Please contact us at 9802021@prince.com.tw 1106031@prince.com.tw +886 2 2758 9599

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

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Prince Housing & Development Corp.

Thank you for your support

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Prince Housing & Development Corp.

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