2Q2019 Results and Business Plan Disclaimer The information - - PowerPoint PPT Presentation

2Q2019 Results and Business Plan

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The information (“Confidential Information”) contained in this presentation is strictly confidential and is provided by Ananda Development Public Company Limited (the “Company”) to you solely for your reference. 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 organization or elsewhere, without the prior written consent of the Company. By attending this presentation, participants agree not to remove this document, or any materials provided in connection herewith, from the conference room where such documents are provided without express consent from the Company. Although care has been taken to ensure that the Confidential Information in this presentation is accurate, and that the opinions expressed are fair and reasonable, the Confidential 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 the Company. None of the Company, or any of their respective members, directors, officers, employees or affiliates nor any other person accepts any liability (in negligence, or otherwise) whatsoever for any loss howsoever arising from any use of this presentation or its contents or otherwise arising in connection therewith. This presentation is for information purposes only and does not constitute or form part of any offer or invitation for sale or subscription of or solicitation or invitation of any offer to or recommendation to buy or subscribe for any securities, nor shall it or any part of it form the basis of or be relied on in connection with any contract, commitment or investment decision in relation thereto in Thailand, United States or any other jurisdiction. 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. This presentation contains projections and forward‐looking statements that reflect the Company's current views with respect to future events and financial performance. These views are based on 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 the control of the

• Company. 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 the Company's assumptions are
• correct. Such forward‐looking statements are not guarantees of future performance and accordingly, the actual results, financial condition, performance or achievements of the Company may differ materially from those

forecasted and projected or in the forward‐looking statements.

Disclaimer

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2Q2019 1Q2019 2Q2018 % Q-o-Q % Y-o-Y

M Baht % M Baht % M Baht % Total revenue 2,037

100%

1,822

100%

2,426

100% 12%

• 16%

Revenue from sale of real estate 871 43% 775 43% 1,534 63% 12%

• 43%

Project management and commission income 431 21% 473 26% 431 18%

• 9%

0% Construction income 541 27% 313 17% 330 14% 73% 64% Other incomes 194 10% 261 14% 131 5%

• 26%

48%

Gross profit 579 28% 679 37% 774 32%

• 15%
• 25%

Sale of real estate 205 24% 159 21% 439 29% 29%

• 53%

Project management and commission 220 51% 295 62% 224 52%

• 25%
• 2%

Construction 39 7% 26 8% 27 8% 50% 42% Others 114 N/A 200 N/A 83 N/A

• 43%

37%

SG&A 547 27% 697 38% 627 26%

• 21%
• 13%

Selling expenses 150 7% 147 8% 215 9% 2%

• 30%

Administrative expenses 397 19% 549 30% 412 17%

• 28%
• 4%

Other expenses

• 2

0%

• 8

0% 0% N/A N/A

Share of Profit (Loss) 253 12% 371 20% 539 22%

• 32%
• 53%

EBIT 286 14% 363 20% 685 28%

• 21%
• 58%

Interest expenses 141 7% 105 6% 91 4% 35% 56% Net Profit (Loss) 168 8% 270 15% 584 24%

• 38%
• 71%

Profit attributable to non-controlling interests

• 48
• 2%
• 38
• 2%

0% 29% N/A Profit attributable to equity holders of the company 120 6% 232 13% 584 24%

• 48%
• 79%

Profitability: Investment from Joint Ventures was a Key Contribution

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1H2019 1H2018 % Y-o-Y

M Baht % M Baht % Total revenue 3,859 100% 5,246 100%

• 26%

Revenue from sale of real estate 1,646 43% 3,387 65%

• 51%

Project management and commission income 904 23% 927 18%

• 2%

Construction income 854 22% 624 12% 37% Other incomes 455 12% 307 6% 48%

Gross profit 1,258 33% 1,811 35%

• 31%

Sale of real estate 365 22% 1,009 30%

• 64%

Project management and commission 515 57% 529 57%

• 3%

Construction 65 8% 53 8% 22% Others 314 N/A 220 N/A 43%

SG&A 1,244 32% 1,312 25%

• 5%

Selling expenses 297 8% 489 9%

• 39%

Administrative expenses 947 25% 824 16% 15%

Other expenses

• 10

0%

• 0%

N/A Share of Profit (Loss) 624 16% 473 9% 32% EBIT 649 17% 971 19%

• 33%

Interest expenses 246 6% 183 3% 35% Net Profit (Loss) 438 11% 729 14%

• 40%

Profit attributable to non-controlling interests

• 86
• 2%

0% N/A Profit attributable to equity holders of the company 352 9% 729 14%

• 52%

Profitability: Investment from Joint Ventures was a Key Contribution

7,212 8,265 473 624

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1H19 TRANSFERS

Unit: M Baht

GROWTH YOY

15%

Transfers from JV Share Profit from JV %Gross Profit Margin

Profitability: Investment from Joint Ventures was a Key to Grow

%Net Profit Margin 1H18 1H19

FROM JV PROJECTS

83%

36% 34% 20% 18%

MAINTAIN HIGH LEVEL OF PROFIT MARGIN

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2Q2019 1Q2019 2Q2018 % Q-o-Q %Y-o-Y

M Baht M Baht M Baht

Cash balance and equivalent

5,912 4,626 1,585 28% 273%

Assets

48,497 43,012 35,504 13% 37%

Interest bearing debts

24,116 18,715 17,274 29% 40%

Liabilities

29,558 23,659 21,642 25% 37%

Shareholders' equity

18,938 19,354 13,862

• 2%

37%

D/E ratio (times)

1.56 1.22 1.56 28% 0%

Net IBDE ratio (times)

0.96 0.73 1.13 32%

• 15%

Balance Sheet: Business Growth with Discipline

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Business Growth with Discipline

1.2 0.5 1 1.5

Note : Net Interest bearing debt including JV debt to equity

2014 2015 2016 2017 2018

Bond Covenants

2.5 Times

1H2019

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Key challenges to Thailand real estate market 1

Macro Prudential Policy

Effective 1 Apr 19 onwards, LTV will be decreased to 80% for;

• Multiple loan
• Unit price over 10 Mb.

2

Trade War/Thai Baht appreciation

3

Revised down Thailand GDP Growth

Negative growth rate of Chinese demand impacted from China – US trade war and Thai Baht appreciation Thailand GDP was revised down to 3.3% from 3.8% (BOT) due to slower exports which were effected by China-US trade war

2013 2014 2015 2016 2017 2018 2019 9

33 BILLION BAHT

9 PROJECTS

7 PROJECTS

CONDOMINIUM

92

%

2 PROJECTS

HOUSING

8

%

6

JOINT VENTURE PROJECTS

98% CONDO LAUNCH

32,937 26,756

GROWTH

23

%

FROM 2018

Launch Target 2019: Moderate Growth with Mid-End Segment Focus

From original plan of 10 projects at 38 Bn

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• NO. LAUNCH

BEGINS

1Q19 2Q19 4Q19 3Q19

2019

33 BILLION BAHT 9 PROJECTS 6

JOINT VENTURE PROJECTS

Condo

• 9,638*
• 20,496

30,134 Housing

• 1,369

1,434

• 2,803

TOTAL (MILLION BAHT)

• 11,007

1,434 20,496

32,937

• NO. OF CONDO PROJECT
• 1 JV
• 6 (5JVs)

7 (6 JVs)

• NO. OF HOUSING PROJECT
• 1

1

• 2

Launch Target 2019: Moderate Growth with Mid-End Segment Focus

Note : * Ideo Q Phahol-Saphankhai is under redesigned and will be soft opened in the fourth quarter of 2019

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28 BILLION BAHT

CONDOMINIUM 4,064 5,648 5,215 4,112 11,023 24,414 HOUSING 752 798 885 1,016 1,234 3,886 TOTAL (MILLION BAHT) 4,815 6,446 6,100 5,128 12,257

28,300

PRESALES

2Q19A 4Q19F 3Q19F

2019F

Presales Target 2019: Adjust Presales Target to be in line with Current Market Sentiment

1Q19A CONDOMINIUM

87

%

HOUSING

13

%

2Q19F

From original plan of 36 Bn

12

29 BILLION BAHT

CONDOMINIUM

92

%

HOUSING

8

%

Transfer Target 2019: Adjust Transfer Target to be Aligned with Market

Condo

202 1,290 675 1,284 2,626 4,787

Housing

573 606 196 654 1,112 2,535

Ananda F/S

775 1,896 871 1,938 3,738 7,322

Ananda Share in JV

2,171 1,871 1,761 2,339 4,345 10,616

Partner Share in JV

2,685 2,033 1,648 2,255 4,479 11,067

Ananda Share in Transfers

2,946 3,767 2,632 4,277 8,083 17,938

Total (M Baht)

5,631 5,800 4,280 6,532 12,562 29,005

Transfer

1Q19A 2Q19A 4Q19F 3Q19F

2019F

2Q19F

From original plan of 36 Bn

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Transfer Target 2019: 6 Additional Projects will be Ready to Transfer in 2H Mostly in 4Q

Transfer Begins

1Q19 2Q19 4Q19 3Q19 NEW CONDO PROJECTS THAT COMPLETE THIS YEAR

10

OF TRANSFERS COMING FROM

43

%

NEW PROJECT AT SUKHUMVIT 31

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Government Stimulus Measure: Benefits for Value to Mid-End Segment

▪ First home/condos buyers ▪ Value of the property worth up to Bt5mn ▪ The incentive ran between 30 April - 31 December 2019

Personal Income Tax Deduction of up to 200,000 Baht was offered for..

42,012 Mn Baht Under-Construction Projects Expected to be finished between 3Q19 – 4Q19 (avg. valued < Bt5mn) *

61%

Value > Bt5mn

As of Jun 2019

Finished Unsold Inventories valued < Bt5mn are 13% of Total Unsold Inventories

Note: * total unsold values of those 2 projects accounted for around 3,500 million Baht

Ananda Finished Unsold Inventories 59%

Value > Bt5mn Value < Bt5mn

41%

As of June 2019

2019 2020 2021 2,074 88 741 4,743 7,587 2,555 4,798 8,545 1,437 625 Ananda's Backlog - Condo Ananda's Backlog JV - Condo Partner's Share Ananda's Backlog - Housing

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Backlog 33.2 Bn Baht 64% of the next 6 months of 2019 transfers secured by backlog

12,240 MILLION BAHT 16,219 MILLION BAHT 4,734 MILLION BAHT Backlog: Over 64% of the next 6 months Transfers were Secured

Updated: June 30, 2019

Note : Backlog excluded Ideo Q Phahol-Saphankhai which is under redesigned and will be soft opened in the fourth quarter of 2019

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Transfer Performance: Our Customers were Cashed Up

1H2019 CASH

41

%

1H2019 MORTGAGE

59

%

DOMESTIC

20 %

INTERNATIONAL

21 %

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 2015 2016 2017 2018 1H2019

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2Q2019 Summary: Business Growth with Discipline ❖New project transfers on schedule ❖SG&A down 21% QoQ and 13% YoY ❖Customers paid cash 40% the same range over the past several years ❖64% of the next 6 months of 2019 transfers secured by backlog ❖Net IBDE ratio including JV at 1.2 below bond covenants at 2.5 times

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Show Case: Ideo Q Phahol-Saphankhwai BREAK THROUGH WITH BIM DEMAND OVER 3 TIMES OF UNITS SOLD

39% Sold at Launch

ATTRACTIVE SELLING PRICES BETTER SALES SPEED BETTER PROFITABILIY

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Ananda Tech: No.1 BIM Technology In Thailand

BUILDING INFORMATION MODELLING (BIM)

4 Goals:

• 1. Cost Projection; more accurate, time and cost saving
• 2. Preventive Maintenance
• 3. Construction Optimization
• 4. Big Data

With BIM technology, more accurate virtual models of a building are constructed digitally; BIM supports design through its phases, allowing better analysis and control than manual processes

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IDEO Q PHAHOL-SAPHANKWAI HIGH-END

Project Launch 2019: Mid-End Segment Focus NEW BRAND

SEGMENT PROJECT VALUE (MILLION BAHT) SOFT LAUNCH PERIOD

• NO. OF BUILDING/FLOORS

STARING SELLING PRICE/SQM

• NO. OF UNIT

EXPECTED TRANSFER BEGINS

MID-END

9,638

8,500-9,500

2Q2019

4Q2019

1,114

1,100-1,300

3 BUILDINGS/39 FLOORS

1 BUILDING/30 FLOORS

189,000 BAHT/SQM

149,000 BAHT/SQM

1Q2022

1Q2022

HIGHER EFFICIENCY, LOWER COST, SHORTHEN CONSRUCTION TIME, ATTRACTIVE PRICES WITH BETTER PROFITABILITY CRITERIA

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Note : 1 including Joint Venture with Mitsui Fudosan

Financial Target in 2019: Adjust Financial Target to be in line with Current Market

Item 2013 Actual 2014 Actual 2015 Actual 2016 Actual 2017 Actual 2018 Actual 2019 Guidance

Transfers1 (M Baht) 8,808 9,678 9,598 15,866 15,098 33,171 28,000-31,000 Launches (M Baht) 34,213 14,954 34,828 20,693 42,450 26,756 32,000-34,000 Presales (M Baht) 21,083 20,898 26,235 25,175 34,920 31,483 27,000-30,000 Gross Profit Margin 39% 38% 40% 37% 37% 34% 30-32% Net Interest Bearing D / E, Year End 0.3 0.7 0.7 0.8 0.8 0.7 0.8-1.0 Net IBD/E including JV Debt 0.3 0.9 1.0 1.0 1.2 1.1 1.2-1.4 Land Purchases (M Baht) 4,343 10,284 5,258 7,252 15,600 10,000 4,000-5,000 Residential Construction Capex (M Baht) 1,516 6,429 8,052 8,899 14,957 15,410 7,000-9,000 Serviced Apartments Capex (M Baht)

• 189

1,529 2,500-3,000 Project Management Income (M Baht) 157 265 696 853 1,650 1,532 2,000-2,500

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SA Progress Update : Two New Projects to Commence Operation in 2020

SOMERSET RAMA 9 SA Portfolio Construction Progress Expected COD SOMERSET RAMA 9 78% Q1/2020

LYF SUKHUMVIT 8 28% Q2/2020 ASCOTT EMBASSY SATHORN 15% Q1/2021 ASCOTT THONGLOR BANGKOK 8% Q2/2021 SOMERSET PATTAYA Expected construction begins in 2H19 Q1/2022

As at 4 Aug 2019

Recurring income portfolio diversification, ensuring long term growth

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SA Portfolio Construction Progress Expected COD

SOMERSET RAMA 9 78% Q1/2020 LYF SUKHUMVIT 8 28% Q2/2020 ASCOTT EMBASSY SATHORN 15% Q1/2021 ASCOTT THONGLOR BANGKOK 8% Q2/2021 SOMERSET PATTAYA Construction commence in 2H19 Q1/2022

LYF SUKHUMVIT 8

Recurring income portfolio diversification, ensuring long term growth

As at 4 Aug 2019

SA Progress Update : Two New Projects to Commence Operation in 2020

2018

35%

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Dividend: Increase Investment Return to Shareholders

86%

IPO

2012 2013 2014 2015 2016 2017 2019 (Interim)

DIVIDEND PAYOUT RATIO

21% 25% 28% 28% 32%

RECORD DIVIDEND PAYOUT RATIO SINCE IPO

25

BE Growth with Discipline BEPartnership BEDiversified in Portfolio BECare of Shareholders We are built to last from 4 BEs

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Contact:

• Dr. Chaiyuth Chunnahacha

Chief Financial Officer Ananda Development Public Company Limited chaiyuth@ananda.co.th +662 056 2222

• Mr. Komsan Atthaphonphithak

Senior Investor Relations Manager Ananda Development Public Company Limited komsan@ananda.co.th +662 056 2222 Mobile: +66 819 16 3755

Thank You

• Ms. Katalee Krachangsaeng

Assistant Investor Relations Manager Ananda Development Public Company Limited katalee@ananda.co.th +662 056 2222 Mobile: +66 881 99 3832

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Project Economic Shareholding (ANAN:Partner) Launched Type Value (M Baht) %Net Sold Backlog (M Baht) Unsold Inventory (M Baht) %Transfer

ADO: Atoll (Housing) 100 Feb-13 Housing 3,210 51.7% 34 1,842 50.8% AD18: Ashton Asoke (JV) 51:49 Sep-14 Condo 6,727 72.6% 393 1,847 66.7% AD17: Ideo Q Siam-Ratchathewi (JV) 51:49 Sep-14 Condo 3,881 91.4% 192 331 86.5% AD16: Ideo Mobi Wongsawang-Interchange 100 Sep-14 Condo 1,655 64.2% 27 588 62.6% AD18: Ashton Chula-Silom (JV) 51:49 Mar-15 Condo 8,640 95.1% 355 420 91.0% AD17: Ashton Residence 41 100 Mar-15 Condo 1,944 51.3% 235 947 39.2% AD16: Unio Charan 3 100 Jun-15 Condo 2,118 100.0%

• 100.0%

AD16: Arden 3 projects 100 Jun-15 Housing 2,843 99.1% 13 12 98.1% AD17: Ideo Sukhumvit 115 100 Aug-15 Condo 2,820 100.0%

• 100.0%

AD18: Q Chidlom (JV) 51:49 Aug-15 Condo 3,108 80.2% 231 612 72.7% AD17: Ideo O2 (JV) 51:49 Aug-15 Condo 5,105 92.3% 621 389 80.1% AD17: Ideo Mobi Bangsue Grand Interchange (JV) 51:49 Nov-15 Condo 2,357 58.6% 37 968 57.1% AD18: Ashton Silom (JV) 51:49 Nov-15 Condo 6,089 60.4% 1,580 2,400 34.4% AD17: Ideo Tha Phra Interchange (JV) 51:49 Feb-16 Condo 2,766 67.4% 52 901 65.5% AD17: Unio Sukhumvit 72 100 Jul-16 Condo 1,556 100.0%

• 100.0%

AD17: Unio Rama2-Thakham 100 Jul-16 Condo 985 100.0% 6

• 99.4%

AD18: Venio Sukhumvit 10 100 Sep-16 Condo 877 78.6% 5 188 78.0% AD18: Ideo Mobi Asoke (JV) 51:49 Sep-16 Condo 3,345 82.4% 426 590 69.7% AD18: Ideo Sukhumvit 93 (JV) 26:74 Oct-16 Condo 6,397 95.6% 253 283 91.6% AD18: Ideo Phaholyothin-Chatuchak (JV) 51:49 Oct-16 Condo 2,602 83.3% 109 434 79.1% AD18: Ideo Mobi Sukhumvit 66 (JV) 51:49 Oct-16 Condo 2,403 53.6% 235 1,116 43.8% AD18: Unio Ramkhamhaeng-Serithai 100 Mar-17 Condo 897 62.6% 22 335 60.2% AD19: Unio H Tiwanon 100 Mar-17 Condo 794 43.9% 133 445 27.2% AD17: Artale Phattanakarn-Thonglor 100 Mar-17 Housing 1,645 71.3% 140 471 62.8% AD19: Ideo Q Victory (JV) 51:49 Jun-17 Condo 3,202 94.3% 3,019 183

• AD20: Ashton Asoke-Rama 9 (JV)

51:49 Jun-17 Condo 6,634 79.3% 5,169 1,349

• Updated: Jun 30, 2019

Current Projects As Of June 2019

Note: JV = Joint Venture with Mitsui Fudosan

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Updated: Jun 30, 2019

Project Economic Shareholding (ANAN:Partner) Launched Type Value (M Baht) % Net Sold Backlog (M Baht) Unsold Inventory (M Baht) %Transfer

AD20: Ideo Q Sukhumvit 36 (JV) 26:74 Jun-17 Condo 4,318 55.9% 2,414 1,904

• AD19: Ideo New Rama 9 (JV)

26:74 Jun-17 Condo 3,071 75.4% 862 756 47.2% AD19: Elio Del Nest (JV) 51:49 Jun-17 Condo 5,112 49.9% 2,525 2,534

• AD17: Unio Town Lumlukka Klong 4

100 Jun-17 Housing 895 33.6% 24 594 30.9% AD17: Airi Rama 5-Ratchaphruek 100 Jul-17 Housing 697 50.3% 20 347 47.4% AD18: Artale Kaset-Nawamin 100 Aug-17 Housing 1,502 21.2% 113 1,183 13.7% AD17: Atoll Wongwaen-Lumlukka 100 Sep-17 Housing 708 33.6% 4 470 33.0% AD19: Ideo Mobi Sukhumvit 40 100 Sep-17 Condo 2,075 42.3% 877 1,198

• AD19: Ideo Mobi Rangnam (JV)

38:62 Sep-17 Condo 2,391 40.4% 965 1,426

• AD19: Elio Del Moss (JV)

74:26 Nov-17 Condo 3,437 66.0% 1,062 1,164 35.0% AD21: Ideo Mobi Rama 4 100 Nov-17 Condo 5,014 14.8% 741 4,273

• AD19: Ideo Sathorn-Wongwian Yai (JV)

51:49 Mar-18 Condo 2,562 60.4% 1,549 1,014

• AD19: Unio Sukhumvit 72 Phase 2

100 Mar-18 Condo 1,823 66.8% 859 605 19.7% AD21: Ideo Rama 9-Asoke (JV) 64:36 Jun-18 Condo 6,728 59.6% 3,993 2,702

• AD18: Unio Town Phetkasem 110

100 Jun-18 Housing 400 24.9% 10 300 22.3% AD20: Ideo Ratchada-Sutthisan (JV) 51:49 Sep-18 Condo 1,723 40.1% 691 1,032

• AD20: Elio Sathorn-Wutthakat (JV)

51:49 Sep-18 Condo 3,416 33.3% 1,135 2,270

• AD18: Unio Town Srinakarin-Bangna

100 Sep-18 Housing 899 14.8% 19 766 12.7% AD18: Unio Town Suanluang-Patthanakan 100 Sep-18 Housing 642 19.9% 28 514 15.5% AD18: Airi Rama 2 100 Sep-18 Housing 1,023 4.0%

• 982

4.0% AD18: Airi Chaengwatthana 100 Sep-18 Housing 1,144 2.4%

• 1,117

2.4% AD20: Ideo Mobi Sukhumvit Eastpoint (JV) 28.6:71.4 Nov-18 Condo 5,588 32.2% 1,796 3,791

• AD19: Unio Town Suksawat 30

100 Dec-18 Housing 779 10.2% 79 700

• AD19: Unio Town Prachauthit 76

100 Jun-19 Housing 1,369 7.7% 106 1,264

• Housing

17,756 590 10,563 Condo 124,160 32,569 38,996

Grand total

141,916 33,159 49,559

Note: JV = Joint Venture with Mitsui Fudosan Ideo Q Phahol-Saphan Khwai is under redesigned and will be soft opened in the fourth quarter of 2019

Current Projects As Of June 2019 (Cont.)

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