1Q18 Quarterly Results SET Opportunity Day 21 May 2018 1Q18 - - PowerPoint PPT Presentation

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1Q18 Quarterly Results SET Opportunity Day 21 May 2018 1Q18 - - PowerPoint PPT Presentation

1Q18 Quarterly Results SET Opportunity Day 21 May 2018 1Q18 Quarterly Results | SET Opportunity Day | 21 May 2018 Disclaimer The information (the Information) contained in this presentation is strictly confidential and is provided by


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SLIDE 1 1Q18 Quarterly Results | SET Opportunity Day | 21 May 2018

1Q18

SET Opportunity Day

21 May 2018

Quarterly Results

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SLIDE 2 1Q18 Quarterly Results | SET Opportunity Day | 21 May 2018

The information (the “Information”) contained in this presentation is strictly confidential and is provided by Nirvana Daii Public Company Limited (“NVD”) solely for information purpose and does not constitute an offer or invitation to sell or the solicitation of an

  • ffer or invitation to purchase or subscribe for share in NVD. Any such purchase should be made solely on the basis of the information

contained in the announcements to the Stock Exchange of Thailand relating to such securities. No reliance may be placed for any purposes whatsoever on the information set forth in this presentation or on its completeness. Neither this presentation nor any part thereof may be (i) used or relied upon by any other party or for any other purpose; (ii) copied, photocopied, duplicated or otherwise reproduced in any form or by any means; or (iii) redistributed, passed on or otherwise disseminated, to any other person either in your

  • rganization or elsewhere, without the prior written consent of NVD.

This presentation contains projections and forward‐looking statements that reflect NVD's current views with respect to future events and financial performance. These views are based on our management’s assumptions and beliefs in light of the information currently available to us including a number of estimates and current assumptions which are subject to business, economic and competitive uncertainties and contingencies as well as various risks and these may change over time and in many cases are outside our control. Although care has been taken to ensure that the Information in this presentation is accurate, and that the opinions expressed are fair and reasonable, the Information is subject to change without notice, its accuracy is not guaranteed, has not been independently verified and it may not contain all material information concerning NVD. You are cautioned not to place undue reliance on these forward looking statements. No assurance can be given that future events will occur, that projections will be achieved, or that NVD's assumptions are correct. Please note that NVD and executives/staff do not control and cannot guarantee the relevance, timeliness, or accuracy of these

  • Information. NVD undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new

information, future events or otherwise. None of NVD’s executives/staff or any of its agents, or all of their respective affiliates, or representatives shall have any liability (in negligence or otherwise) for any loss howsoever.

Disclaimer

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SLIDE 3 1Q18 Quarterly Results | SET Opportunity Day | 21 May 2018

Agenda

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  • 1Q18 Key Activities
  • Grand Opening: Banyan Tree Residences – Riverside Bangkok
  • Exclusive Sales: Nirvana DEFINE Srinakarin-Rama 9
  • 1Q18 Financial Results
  • Consolidated Statements of Incomes & Financial Positions
  • FY18 Outlook
  • On-going Projects
  • Sales-Transfers-Backlog Report
  • Update on Landbanks
  • Strategy Execution
  • Strategic Direction & Financial Goal
  • BAAN Nirvana: Home Building Reimagined
  • Update on Provincial JV
  • Update on Construction Services
  • Key Takeaways
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SLIDE 4 1Q18 Quarterly Results | SET Opportunity Day | 21 May 2018

1Q18

Key Activities

SET Opportunity Day

21 May 2018

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SLIDE 5 1Q18 Quarterly Results | SET Opportunity Day | 21 May 2018

1Q18 Key Activities

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1Q18 Quarterly Results | SET Opportunity Day | 21 May 2018

Feb 2018

Grand Opening Banyan Tree Residences – Riverside Bangkok

Project Value

Bt.6,000m+

  • 45-story Freehold, Riverfront Condominium
  • 70% JV Project along Chaopraya River

& Golden Line Skytrain

  • Branded Banyan Tree Residences
  • Construction by Bouygues-Thai Ltd.
  • Design consultant by SCDA
  • Construction progress up to top floor (45F)
  • Transfer expected in late 2018
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SLIDE 6 1Q18 Quarterly Results | SET Opportunity Day | 21 May 2018

1Q18 Key Activities

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1Q18 Quarterly Results | SET Opportunity Day | 21 May 2018

Mar 2018

Exclusive Sales: Nirvana DEFINE Srinakarin-Rama 9

Project Value

Bt.1,900m

  • 173-units fully-prefabricated Townhouses
  • Street-front on Srinakarin-Romklao Road
  • About 30 units, worth nearly Bt.300m,

sold in one weekend

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SLIDE 7 1Q18 Quarterly Results | SET Opportunity Day | 21 May 2018

1Q18

Financial Results

SET Opportunity Day

21 May 2018

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SLIDE 8 1Q18 Quarterly Results | SET Opportunity Day | 21 May 2018

1Q18 Financial Results

8

Bt.m

%Change Revenue from sales of real estate 537.4 79% 390.9 73%

  • 27%

Revenue from construction contracts 119.6 18% 95.5 18%

  • 20%

Revenue from sales of goods 24.9 4% 50.2 9% 102% Total revenue 681.9 100% 536.5 100%

  • 21%

Costs of sales of real estate (352.7)

  • 66%

(230.3)

  • 59%
  • 35%

Costs of construction (93.9)

  • 79%

(75.4)

  • 79%
  • 20%

Costs of sales of goods (19.5)

  • 78%

(47.0)

  • 94%

141% Total costs (466.1)

  • 68%

(352.7)

  • 66%
  • 24%

Gross profit 215.9 32% 183.8 34%

  • 15%

Other income 7.2 1% 22.7 3% 215% Selling expenses (88.4)

  • 13%

(96.4)

  • 15%

9% Administrative expenses (51.1)

  • 7%

(52.5)

  • 8%

3% Net loss from exchange rate 0.0 nm (4.9)

  • 1%

nm Financial costs (interest expenses) (3.5)

  • 1%

(7.9)

  • 1%

126% EBT 80.1 12% 44.8 8%

  • 44%

Income taxes (20.7)

  • 3%

(13.4)

  • 2%
  • 35%

Net Profit (losses) 59.5 9% 31.4 6%

  • 47%
Baht

Earnings (losses) per share 0.05 0.03

Unaudited

1Q18

Unaudited

1Q17 Lower Home Offices transfers from:

  • Less favorable sentiments, especially for SMEs
  • Customers’ post-financing being turned down

despite strong sales momentum Growth in Sales of Goods from:

  • Sales of structural precast concrete elements

to Crossroads Project in Maldives Townhouses transfers continued strong but not enough to offset Home Offices drop Blended Gross Margins improved in percentage term:

  • Sales of partial street-front land along

Srinakarin-Romklao Road

  • Land trading as part of asset maximization strategy

Selling expenses increased from:

  • Grand Opening of Banyan Tree Residences

Forex loss from strong THB against USD in relations to precast concrete shipments to Maldives Financial costs up from:

  • Interest expenses of project financing loan for

Nirvana DEFINE Rama9

  • Constructions completed but still a few available-for-sales

units, thus interest expenses no longer being capitalized

Consolidated Statements of Incomes

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SLIDE 9 1Q18 Quarterly Results | SET Opportunity Day | 21 May 2018

Bt.m 31-Dec-17 31-Mar-18 %Change

Assets Cash and cash equivalents 992 513

  • 48%

Total CA 6,393 6,155

  • 4%

Non-current assets Land held for development 2,107 2,569 22% Property, plant and equipment, net 356 379 Goodwill 332 332 Total non-current assets 3,356 3,469 3% Total assets 9,749 9,624

  • 1%

Liabilities and equity Land purchase payables 1,197 446

  • 63%

Interest-bearing debts 2,824 3,473 23% Total liabilities 5,045 4,889

  • 3%

Paid-up share capital 1,381 1,381 Premium on share capital 1,251 1,251 Premium from acquisition 1,589 1,589 Retained earnings 402 440 9% Total equity 4,704 4,735 1% Total liabilities and equity 9,749 9,624

  • 1%

Net IBDE ratios 0.39 0.62 TL-TE ratios 1.07 1.03

1Q18 Financial Results

9

Consolidated Statements of Financial Position

  • Overall balance sheet size relatively unchanged from YE17

Assets

  • Cash and Bank Deposits consumed mainly in:
  • Purchase of land for Nirvana DEFINE Srinakarin-Rama9,

as well as project development activities

  • Some debentures due for repayments
  • Land held for development up due to:
  • Transfer of 71.5-rai more land along Srinakarin-Romklao Road
  • Land trading as part of asset maximization strategy

Liabilities

  • Land purchase payables down due to:
  • Payments of approximately 80 rais of land along

Srinakarin-Romklao Road

  • Part of these payables transformed into interest-bearing

debts for project financing loans

  • Interest-Bearing Debts (net of repayments and new drawdowns)

increased due to:

  • Land purchase activities above and
  • Drawdowns of BTRRB project financing loan.
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SLIDE 10 1Q18 Quarterly Results | SET Opportunity Day | 21 May 2018

FY18

Outlook

SET Opportunity Day

21 May 2018

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SLIDE 11 1Q18 Quarterly Results | SET Opportunity Day | 21 May 2018

11

  • 1. Nirvana BEYOND - Kaset Nawamin
  • 2. Nirvana BEYOND - Srinakarin
  • 3. Nirvana BEYOND - @Beach
  • 4. Nirvana BEYOND - Rama 2
  • 5. ICON - WW-Rama 9
  • 6. ICON - Pinklao
  • 7. The TARA - Ramindra
  • 8. CLUSTER by Nirvana - Raspattana
  • 9. COVER by Nirvana - On-nut

10.DEFINE - Rama 9 11.DEFINE - Srinakarin-Rama 9 12.@WORK - Ramintra 13.@WORK - Ladprao-Kaset Nawamin 14.BANYAN TREE Residences Riverside Bangkok

Single Detached Homes Townhomes Home Offices Condominium

1 2 4 5 6 7 8 9 10 12 13 14 11

FY18 Outlook: On-going Projects

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SLIDE 12 1Q18 Quarterly Results | SET Opportunity Day | 21 May 2018

FY18 Outlook: On-going Projects

12

Backlog

Bt.million As of Mar 31, 2018

Projects Project Values Price Range Total Project Sold Transferred Backlog Available for Sales Single Detached Homes Nirvana BEYOND - Kaset Nawamin Ph.1 1,070 12-35 67 66 66 1 Nirvana BEYOND - Srinakarin 988 13-35 58 42 37 5 16 Nirvana BEYOND - @Beach 424 15-20 21 1 1 20 Nirvana BEYOND - Kaset Nawamin Ph.2 717 15-30 37 34 34 3 Nirvana BEYOND - Rama 2 Ph.1 1,633 16-60 66 16 11 5 50 Nirvana BEYOND - Rama 2 Ph.2 1,005 14-30 54 2 1 1 52 ICON - WW-Rama 9 513 6-20 36 35 35 1 ICON - Pinklao 218 16-23 28 1 1 27 The TARA - Ramintra 275 4-10 53 39 38 1 14 Townhomes CLUSTER by Nirvana - Ratpattana 103 3-8 20 9 9 11 COVER by Nirvana - On-nut 550 2-6 194 193 193 1 DEFINE - Rama 9 630 8-27 51 48 47 1 3 DEFINE - Srinakarin-Rama 9 1,900 7-20 173 32 32 141 Home Offices @WORK - Ramintra 1,056 13-25 61 24 22 2 37 @WORK - Ladprao-Kaset Nawamin 1,052 13-31 56 19 11 8 37 Condominium BANYAN TREE Residences Riverside Bangkok 6,518 20-300 133 85 85 48

Estimated Values (Bt.m) 3,925 9,859

Bt.m #Units

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SLIDE 13 1Q18 Quarterly Results | SET Opportunity Day | 21 May 2018

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1Q18 Quarterly Results | SET Opportunity Day | 21 May 2018

Project Value

  • 45-story Freehold, Riverfront Condominium
  • 70% JV Project along Chaopraya River

& Golden Line Skytrain

  • Branded Banyan Tree Residences
  • Construction by Bouygues-Thai Ltd.
  • Design consultant by SCDA
  • Construction progress up to top floor (45F)
  • Transfer expected from late 2018 onwards

Bt.6,000m+

FY18 Outlook: Banyan Tree Residences – Riverside Bangkok

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SLIDE 14 1Q18 Quarterly Results | SET Opportunity Day | 21 May 2018

FY18 Outlook: Nirvana DEFINE Srinakarin-Rama 9

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1Q18 Quarterly Results | SET Opportunity Day | 21 May 2018
  • First 32 backlog units expected

to transfer from 3Q18 onwards

  • More sales events expected in 2Q18

after two more show units complete

Project Value

Bt.1,900m

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SLIDE 15 1Q18 Quarterly Results | SET Opportunity Day | 21 May 2018

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1Q18 Quarterly Results | SET Opportunity Day | 21 May 2018

FY18 Outlook: Nirvana DEFINE Srinakarin-Rama 9

  • First 32 backlog units expected

to transfer from 3Q18 onwards

  • More sales events expected in 2Q18

after two more show units complete

Project Value

Bt.1,900m

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SLIDE 16 1Q18 Quarterly Results | SET Opportunity Day | 21 May 2018

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FY18 Outlook: Nirvana DEFINE Srinakarin-Rama 9

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SLIDE 17 1Q18 Quarterly Results | SET Opportunity Day | 21 May 2018

263.5rai

104.2 acres

Srinakarin-Romklao Road

Rattanathibet Road

30,000m

POTENTIAL PROJECT VALUE

Bt.

17

7.9rai 4.5rai

3.1 acres 1.8 acres

276rai

HIGH-POTENTIAL, QUALITY ASSETS

109.1 acres

FY18 Outlook: High-potential Landbank

1Q18 Quarterly Results | SET Opportunity Day | 21 May 2018

On-going JV discussions on these landbanks

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SLIDE 18 1Q18 Quarterly Results | SET Opportunity Day | 21 May 2018

FY18

Strategy Execution

SET Opportunity Day

21 May 2018

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SLIDE 19 1Q18 Quarterly Results | SET Opportunity Day | 21 May 2018

Strategic Direction: Quality of Growth

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DEVELOP FOR SALES RECURRING INCOMES

TOWNHOUSE HOME-OFFICE CONDO

Parking Structures

DEVELOP

For Rents/Manage

Aluminum Windows & Doors

Paving

Hospitality Sector Hotels & Resorts

CONSTRUCTION SERVICES

& Building Materials

Telecom Sector

LAND TRADING FOR ASSET MAXIMIZATION PURPOSES

SDH HOME BUILDING SERVICES

Building Homes On Customer’s Land

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SLIDE 20 1Q18 Quarterly Results | SET Opportunity Day | 21 May 2018

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Financial Goal

Land Acquisition Strategy JV & Partnership Collaborations Recurring Income Businesses

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SLIDE 21 1Q18 Quarterly Results | SET Opportunity Day | 21 May 2018

21

Strategy Execution: Home Building Service

  • “BAAN Nirvana” NVD’s new home building service brand
  • Show units around the city for real-life, touch-and-feel experiences
  • Rolling out more customer touchpoints

Nirvana Daii Lounge

Central Bangna

New Sales Office

Rama 9

Home Building Center

Rama 9 [Upcoming]

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SLIDE 22 1Q18 Quarterly Results | SET Opportunity Day | 21 May 2018

22

Strategy Execution: Nirvana BEYOND Udonthani (JV)

1Q18 Quarterly Results | SET Opportunity Day | 21 May 2018
  • MOU signed with Landlord in Mar 2018
  • Prime location next to Nongprajak Lake in Central Udonthani
  • Expected project value of approx. Bt.1,000m
  • JV: Less capital employed with provincial brand exposure

Bt.1,000m

Expected Project Value

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SLIDE 23 1Q18 Quarterly Results | SET Opportunity Day | 21 May 2018

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Strategy Execution: Construction Services

1Q18 Quarterly Results | SET Opportunity Day | 21 May 2018
  • NVD Group is awarded to supply precast-concrete

structures to CROSSROADS Maldives Project in Sep-17

  • Phase 1: First three shipments delivered during Oct17-Jan18
  • Phase 2: Awarded to construct beach villas for Island E
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SLIDE 24 1Q18 Quarterly Results | SET Opportunity Day | 21 May 2018

1H18 2H18

DEVELOP FOR SALES RECURRING INCOMES

Grand Opening Transfers to Begin

LOW-RISE CONDO

Parking Structure Parking Structure

All-new

Krungthep Kreetha Udonthani JV

All-new Subject to Change

Bangna HOME BUILDING CENTER Rama 9 HOME BUILDING CENTER Praditmanutham HOME BUILDING CENTER

RECREATION PARK CHIENGRAI

Prefabricated Resort Builder

CONDO

Presales Open House

TOWN HOUSES

JV-SDH PROJECT

SINGLE HOUSES HOME BUILDING SERVICE CONSTRUCTION SERVICES

Maldives

DEVELOP FOR RENTS

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2018 Expected Milestones

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SLIDE 25 1Q18 Quarterly Results | SET Opportunity Day | 21 May 2018
  • 1Q18: Relatively weaker results
  • Less-than-expected transfers of home office units despite strong sales momentum
  • Higher selling expenses, forex losses, & higher financial costs further dampened bottom line
  • Good start for Nirvana DEFINE Srinakarin-Rama 9
  • About 30 units, worth nearly Bt.300m, sold in one weekend
  • Being fully-prefab, first-batch backlog units expected to transfer from 3Q18 onwards
  • More sales events expected in 2Q18 after two more show units complete
  • Backlog approaching Bt.4 billion
  • Condominium and townhouse units contributing to high backlog growth

Quality landbanks with high potentials

  • Sufficient for development over the next 3-5 years
  • Multiple JV discussions continued
  • New journey for home building service
  • Rebranding: BAAN Nirvana – Home Building Reimagined
  • Rolling out more customer touchpoints
  • Expecting stronger 2H18
  • From momentum of Nirvana DEFINE Srinakarin-Rama 9
  • From BTRRB condo units beginning to transfer in 4Q18

25

Key Takeaways

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SLIDE 26 1Q18 Quarterly Results | SET Opportunity Day | 21 May 2018

1Q18

Quarterly Results

SET Opportunity Day

21 May 2018 Contact: IR@nirvanadaii.com Kanlayanee Panthong, DBA. AVP – Investor Relations +662 105 6789 x505