2Q18
SET Opportunity Day
24 Aug 2018
2Q18 Quarterly Results SET Opportunity Day 24 Aug 2018 2Q18 - - PowerPoint PPT Presentation
2Q18 Quarterly Results SET Opportunity Day 24 Aug 2018 2Q18 Quarterly Results | SET Opportunity Day | 24 Aug 2018 Disclaimer The information (the Information) contained in this presentation is strictly confidential and is provided by
SET Opportunity Day
24 Aug 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
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
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, 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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Agenda
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▪ 2Q18 Key Activities
▪ BAAN Nirvana Soft Opening ▪ Change of Bourse: NVD Moved to SET ▪ Soft Opening: Nirvana DEFINE Srinakarin-Rama 9 ▪ Debentures Issuance & Offering ▪ Disposition of Investment in Landy Development
▪ 1H18 Financial Results
▪ Consolidated Statements of Incomes & Financial Positions
▪ 2H18 Outlook
▪ On-going Projects with Sales-Transfers-Backlog Report ▪ Update on Landbanks ▪ Signed JVA to Develop a Single Detached House Project
▪ Strategy Execution
▪ Strategic Direction & Financial Goal ▪ Update on Nirvana Beyond Udonthani: Home Building Service – Project ▪ Update on Construction Services ▪ Update on Prefabricated Park&Ride Structure ▪ 2018 Expected Milestones
SET Opportunity Day
24 Aug 2018
1H18 Key Activities
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2Q18 Quarterly Results | SET Opportunity Day | 24 Aug 2018Feb 2018
Grand Opening: Banyan Tree Residences – Riverside Bangkok
Mar 2018
Exclusive Sales: Nirvana DEFINE Srinakarin-Rama 9
sold in one weekend Apr 2018
Soft Launch: BANN Nirvana
Reimagined
Services
Jun 2018
Soft Opening: Nirvana DEFINE Srinakarin-Rama 9
May 2018
Change of Bourse:
Jun 2018
Disposition of Investment
Landy Development Co.,Ltd. on Jun 29, 2018
Jun 2018
Debentures Issuance & Offering
debt repayment
and Secured Debentures with Debenture-holders’ Representative
Unsecured Debentures without a Debenture-holders’ Representative
Apr-18: BAAN Nirvana Soft Launch
both retails as well as for projects
2Q18 Key Activities
Booth at Architect Expo’18 Home Building Center: Rama 9
2Q18 Quarterly Results | SET Opportunity Day | 24 Aug 2018May-18: Change of Bourse
from MAI to SET
well as global investment community
2Q18 Key Activities
Project Value
2Q18 Quarterly Results | SET Opportunity Day | 24 Aug 20188
Jun-18: Soft Opening – Nirvana DEFINE Srinakarin-Rama 9
Launched two more types
Project Value
Bt.1,900m
▪ 173-units fully-prefabricated Townhouses ▪ Street-front on Srinakarin-Romklao Road9
Jun-18: Debentures Issuance & Offering
2Q18 Key Activities
& offered on Jun 21-22, 2018
investment and/or debt repayment
Issue Date: 22 Jun 2018 Issue Size: Bt.1,000m Tenor: 2 years Coupon Rate: Fixed 5.00% p.a. Par Value: Bt.1,000 per unit Offering Price: Bt.1,000 per unit Principle Payment: Bullet payment at maturity date Interest Payment: Every 3 months on 22 Mar, 22 Jun, 22 Sep and 22 Dec of each year Maturity Date: 22 Jun 2020 Early Redemption: Callable option to redeem all/partial amount after 1 year
Debentures No.1/2018
Issue Date: 21 Jun 2018 Issue Size: Bt.200m Tenor: 1 year Coupon Rate: Fixed 5.25% p.a. Par Value: Bt.1,000 per unit Offering Price: Bt.1,000 per unit Principle Payment: Bullet payment at maturity date Interest Payment: Every 3 months on 21 Mar, 21 Jun, 21 Sep and 21 Dec of each year Maturity Date: 21 Jun 2019 Early Redemption: None
Debentures No.2/2018
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Jun-18: Disposition of Investment
Landy Development Co.,Ltd. (Landy), 595,600 shares or 14.89% stake, for Bt.25m on Jun 29, 2018
DAII since 2006 prior to the merger with Nirvana Development Co.,Ltd.
in which NVD has no power to manage
2Q18 Key Activities
SET Opportunity Day
24 Aug 2018
2Q18 Financial Results
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Consolidated Statements of Incomes
Less Extent of Transformation Impacts in 2Q18 ▪ Crucial strategy to entirely transform NVD’s construction method from conventional to prefabricated constructions ▪ Objective was to fully capitalize on DAII’s expertise and achieve higher construction efficiency as soon as possible. ▪ Nirvana DEFINE Srinakarin‐Rama 9 was the first project to adopt the prefabricated construction. ▪ Being sophisticatedly‐designed townhomes, transformation process took longer than expected, causing delay in the project launch by 6 months. ▪ Impact of the transformation was, however, less severe in 2Q18 than in 1Q18. ▪ Nirvana DEFINE Srinakarin‐Rama 9 was finally launched in late Mar‐18 with strong sales during its first weekend, recording higher presales units than its prior project, Nirvana DEFINE Rama 9. ▪ More interestingly, prefabricated construction proved to shorten time to transfers. ▪ First 11 townhome units were transferred in Jun‐18, only three months after the project launch. ▪ Such swift time‐to‐transfer would not have been possible with the conventional construction. ▪ 2Q18 was thus the first quarter that witnessed the higher construction efficiency.
CONSTRUCTION
Conventional
PREFAB
FULLY PREFABRICATED
Bt.m%Change Revenue from sales of real estate 459.7 73% 316.1 74%
Revenue from construction contracts 145.5 23% 83.6 19%
Revenue from sales of goods 27.9 4% 29.9 7% 7% Total revenue 633.0 100% 429.6 100%
Costs of sales of real estate (297.3)
(209.8)
Costs of construction (115.8)
(70.6)
Costs of sales of goods (21.3)
(17.6)
Total costs (434.4)
(298.0)
Gross profit 198.7 31.4% 131.6 30.6%
Other income 11.9 2% 25.3 6% 113% Selling expenses (79.1)
(60.1)
Administrative expenses (62.0)
(50.6)
Net loss from exchange rate 0.0 0% 1.0 0% nm Financial costs (interest expenses) (3.5)
(2.3)
EBT 66.0 10% 44.9 10%
Income taxes (13.6)
0.5 0%
Net Profit (losses) 52.4 8% 45.4 11%
Earnings (losses) per share 0.045 0.033
Unaudited
2Q18
Unaudited
2Q17
%Change Revenue from sales of real estate 997.1 76% 707.0 73%
Revenue from construction contracts 265.1 20% 179.0 19%
Revenue from sales of goods 52.8 4% 80.1 8% 52% Total revenue 1,315.0 100% 966.1 100%
Costs of sales of real estate (650.0)
(440.1)
Costs of construction (209.7)
(146.0)
Costs of sales of goods (40.8)
(64.6)
58% Total costs (900.5)
(650.7)
Gross profit 414.5 32% 315.4 33%
Other income 19.0 1% 48.0 5% 152% Selling expenses (167.5)
(156.5)
Administrative expenses (113.0)
(103.1)
Net loss from exchange rate 0.0 0% (3.9) 0% nm Financial costs (interest expenses) (6.9)
(4.5) 0%
EBT 146.1 11% 95.4 10%
Income taxes (34.3)
(12.9)
Net Profit (losses) 111.8 9% 82.5 9%
Earnings (losses) per share 0.097 0.064
Unaudited
1H17
Unaudited
1H18
1H18 Financial Results
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Consolidated Statements of Incomes
▪ Transformation process to prefabricated construction impacted revenue growth ▪ Transfers of home‐office segment remained weak from SMEs’ less ability to obtain bank loan approvals. ▪ Townhome segment continued strength. ▪ Nirvana BEYOND Rama 2 and Nirvana BEYOND Srinakarin transfer pace continued to pick up in 2Q18. ▪ Sales of Goods up mainly from additional sales of structural precast concrete beams, columns, and footings to the Crossroads Project in Maldives Blended gross margin improved in percentage term: ▪ Sales of partial street-front land along Srinakarin-Romklao Road in 1Q18 ▪ Land trading as part of asset maximization strategy
32% 33% 1H17 1H18Financial costs down: ▪ Interest expenses incurred from bridging loan of SD4.1 being capitalized as cost of property development. Other Income up: ▪ Some land along Srinakarin‐Romklao Road being expropriated; Net expropriated value booked in 1Q18 ▪ Sales of investment in Landy Development Co.,Ltd. in 2Q18 SG&A down: ▪ Savings of selling and ops expenses from project closing: Nirvana BEYOND Lite and Nirvana ICON Rama 9 ▪ Non-recurring, one‐off fees and services expenses of M&A transaction last year. ▪ Forex loss from strong THB against USD in relations to precast concrete shipments to Maldives Income taxes down: ▪ Accounting adjustment for deferred tax assets ▪ Adjustment made to reflect utilization of loss carry forward tax credit of Nirvana River Co.,Ltd.m BTRRB developer
2Q18 Financial Results
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Consolidated Statements of Financial Position
Overall balance sheet size increased from YE17 on transfers of more land & construction works in progress
Assets
▪ Inventory and Costs of Property Development increased from: ▪ About 61 rais of SD4.1 and 71.5 rais of Lake being reclassified from Land Held for Development ▪ Transfer of about 88.4 rais of SD5 in preparation for new projects ▪ Works in progress of BTRRB & Nirvana DEFINE Srinakarin-Rama 9 ▪ Land Deposits down YE17 as the above land being transferred ▪ Restricted Bank Deposits decreased from AVAL facilities for SD4.2 due to 1Q18 ▪ Land Held for Development remained at end of 2Q18 are landbanks on Rattanathibate Road
Liabilities
▪ Total Land Purchase Payables (both short‐term and long‐term) of Bt.1,433m (Bt.987m+Bt.446m) increased 20% from Bt.1,197m at YE17. ▪ About 61 rais of SD4.1 and 19 rais of SD4.2 were paid for in 1Q18, but transfers of 71.5 rais of Lake in 1Q18 and 88.4 rais of SD5 in 2Q18 caused the net increase of Bt.235.7m from YE17. ▪ Interest-Bearing Debts increased due to: ▪ Bt.1,000m Debentures No.1/2018, ▪ Bt.200m Debentures No.2/2018 ▪ Drawdowns of BTRRB project financing loan
Bt.m 31-Dec-17 30-Jun-18 %ChangeAssets Cash and cash equivalents 991.7 1,153.8 16% Inventory & Costs of property development 4,662.0 7,516.9 61% Land deposits 200.3 60.3
Total CA 6,393.2 9,412.8 47% Non-current assets Restricted bank deposit 382.6 6.7
Land held for development 2,106.8 1,312.4
Property, plant and equipment, net 356.4 433.3 22% Goodwill 331.5 331.5 0% Total non-current assets 3,356.0 2,277.1
Total assets 9,749.2 11,689.9 20% Liabilities and equity Land Purchase payables (due within 1 year) 1,197.3 987.0
Land Purchase payables (over 1 year)
100% Interest-bearing debts (due within 1 year) 1,360.4 1,578.7 16% Interest-bearing debts (over 1 year) 1,464.0 2,947.6 101% Total liabilities 5,045.1 6,986.1 38% Paid-up share capital 1,380.6 1,380.6 0% Premium on share capital 1,251.4 1,251.4 0% Premium from acquisition 1,589.3 1,589.3 0% Retained earnings 402.0 407.9 1% Total equity 4,704.1 4,703.8 0% Total liabilities and equity 9,749.2 11,689.9 20% Net IBDE ratios 0.39 0.72 85% TL-TE ratios 1.07 1.49 38%
SET Opportunity Day
24 Aug 2018
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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 112H18 Outlook: On-going Projects
2H18 Outlook: On-going Projects
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*Nirvana Beyond @Beach is closed *Project value of Icon Pinklao decease due to remodeling of the house type
As of Jun 30, 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 992 13-35 58 47 40 7 11 Nirvana BEYOND - @Beach 424 15-20 21 1 1 20 Nirvana BEYOND - Kaset Nawamin Ph.2 717 15-30 37 35 35 2 Nirvana BEYOND - Rama 2 Ph.1 1,622 16-60 66 17 15 2 49 Nirvana BEYOND - Rama 2 Ph.2 1,005 14-30 54 3 2 1 51 ICON - WW-Rama 9 515 6-20 36 35 35 1 ICON - Pinklao 192 16-23 28 1 1 27 The TARA - Ramintra 274 4-10 53 39 39 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 9 628 8-27 51 48 47 1 3 DEFINE - Srinakarin-Rama 9 1,900 7-20 173 48 11 37 125 Home Offices @WORK - Ramintra 1,054 13-25 61 24 23 1 37 @WORK - Ladprao-Kaset Nawamin 1,055 13-31 56 16 12 4 40 Condominium BANYAN TREE Residences Riverside Bangkok 6,519 20-300 133 67 67 66
Estimated Values (Bt.m) 3,086 10,292
Bt.m #Units
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2H18 Outlook: Nirvana DEFINE Srinakarin-Rama 9
to be ready for transfers in 3Q18
IN TWILIGHT
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 ▪ All 45 floors completed, façade works in progress ▪ Transfer expected from late 2018 onwards
Bt.6,000m+
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2H18 Outlook: Banyan Tree Residences – Riverside Bangkok
2Q18 Quarterly Results | SET Opportunity Day | 24 Aug 2018263rai
104 acresSrinakarin-Romklao Road
Rattanathibet Road
POTENTIAL PROJECT VALUE
Bt.
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7.9rai 4.5rai
3.1 acres 1.8 acresHIGH-POTENTIAL, QUALITY ASSETS
108.9 acres2H18 Outlook: High-potential Landbank
2Q18 Quarterly Results | SET Opportunity Day | 24 Aug 20182H18 Outlook: Signed JVA to Develop a Single Detached House Project
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Real Estate Investor
Nirvana Daiwa Development Company Limited [NDD] 49% 49% 2%
All-new
Beyond Krungthep-Kreetha on 27-rai land plot on Srinakarin Romklao Road
value of Bt.1,633m:
27
rai
SET Opportunity Day
24 Aug 2018
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DEVELOP FOR SALES RECURRING INCOMES
TOWNHOUSE HOME-OFFICE CONDO
Park&Ride Structures
DEVELOP
For Rents/Manage
Aluminum Windows & Doors
PavingCONSTRUCTION SERVICES
& Building Materials
Telecom Sector
LAND TRADING FOR ASSET MAXIMIZATION PURPOSES
SDH HOME BUILDING SERVICES
Strategic Direction: Quality of Growth
Projects
& Retails
Serviced Apartments Hospitality Sector
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Financial Goal
Land Acquisition Strategy JV & Partnership Collaborations Recurring Income Businesses
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Strategy Execution: Nirvana BEYOND Udonthani (JV)
▪ 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
2Q18 Quarterly Results | SET Opportunity Day | 24 Aug 2018Home Building Service – Project
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Strategy Execution: Construction Services
▪ 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 Hard Rock Hotel
2Q18 Quarterly Results | SET Opportunity Day | 24 Aug 2018while piling works are done at site
commence by YE18
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Strategy Execution: Prefabricated Park&Ride Structure
1H18 2H18
DEVELOP FOR SALES RECURRING INCOMES
Grand Opening Transfers to BeginLOW-RISE CONDO
Parking Structure Udonthani JVAll-new Subject to Change
Bangna HOME BUILDING CENTER Rama 9 HOME BUILDING CENTERRECREATION PARK CHIENGRAI
Prefabricated Resort Builder
CONDO HOME BUILDING SERVICE CONSTRUCTION SERVICES
MaldivesDEVELOP FOR RENTS
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2018 Expected Milestones
SINGLE HOUSES
Krungthep Kreetha Exclusive Sales Soft OpeningTOWN HOUSES
Open HouseSET Opportunity Day
24 Aug 2018 Contact: IR@nirvanadaii.com Kanlayanee Panthong, DBA. AVP – Investor Relations +662 105 6789 x505