Quarterly Results
SET Opportunity Day
3 Dec 2019
3Q19 Quarterly Results SET Opportunity Day 3 Dec 2019 3Q19 - - PowerPoint PPT Presentation
3Q19 Quarterly Results SET Opportunity Day 3 Dec 2019 3Q19 Quarterly Results | SET Digital Roadshow| 18 Nov 2019 Disclaimer The information (the Information) contained in this presentation is strictly confidential and is provided by
Quarterly Results
SET Opportunity Day
3 Dec 2019
Disclaimer
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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.
Agenda
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▪ 2Q & 3Q19 Key Activities
▪ Soft & Official Launch ▪ VVIP Presales Event of The Most Issarsphap ▪ Grand Opening of Nirvana Beyond Rama9-Krungthep Kreetha ▪ Grand Opening of Nirvana Beyond Udonthani (Turnkey Solution Project) ▪ Grand Opening of Banyan Tree Residences Riverside Bangkok
▪ 3Q19 & 9M19 Financial Results
▪ Consolidated P&L: Negative Sentiment, Yet Revenue Growth Delivered ▪ Consolidated Statements of Financial Positions: Financial Strength Continued
▪ Business Outlook
▪ On-going Projects with Sales-Transfers-Backlog Report ▪ FY19 Performance Drivers ▪ Strategic Intents: ▪ Land Acquisition Strategy ▪ New Product Offerings ▪ Community Design & Township Development
Key Activities
SET Opportunity Day
3 Dec 2019
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9M19: Key Activities
JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
Bangna-Kingkaew Area
Suvarnabhumi Bangkok International Airport
SDH series Nirvana Element
Sneak Peek ALL-NEW Nirvana BEYOND Series Mar-19
Nirvana BEYOND Rama9-Krungthep Kreetha
with Daiwa House Industry of Japan
consolidated financial statements Nirvana BEYOND Udonthani
(Partnership with Landlord)
building contracts
Apr-19 Official Launch Nirvana BEYOND Rama9-Krungthep Kreetha Mar-19
Jul-19 Grand Opening Nirvana BEYOND Udonthani
Aug-19 Grand Opening Banyan Tree Residences Riverside Bangkok
Jun-19 VVIP & Presales The Most Issaraphap Feb-19 Land Acquisition
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Apr-19: Nirvana BEYOND Rama9-Krungthep Kreetha
Official Launch & Press Conference
Project Value
Bt.2,600m
▪ 85 units of All-new Fully-prefabricated Nirvana BEYOND series ▪ 49%-owned JV Project in partnership with Daiwa House Industry of Japan ▪ Equity income accounted on NVD’s consolidated financial statements
3Q19 Quarterly Results | SET Digital Roadshow| 18 Nov 20197
Jun-19: The MOST Issaraphap
VVIP Presales Event
ISSARAPHAP Project Value
Bt.700m
▪ 193 units with sellable area of 5,900 sqm ▪ Low-rise, 8-story condominium near Siriraj Hospital, blue-line, and orange-line trains ▪ 86% of sold with Bt.558m of backlog for 4Q20
3Q19 Quarterly Results | SET Digital Roadshow| 18 Nov 2019Project Value
Bt.700m
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Jun-19: The MOST Issaraphap
VVIP Presales Event
Project Value
Bt.700m
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Jun-19: The MOST Issaraphap
VVIP Presales Event
Project Value
Bt.1,000m
▪40 units of All-new Fully-prefabricated Nirvana BEYOND series
▪Turnkey Solution Project in Udonthani (Partnership with Landlord)
▪Income recognition only on home building contracts
Jul-19: Nirvana BEYOND Udonthani
Official Launch & Press Conference
3Q19 Quarterly Results | SET Digital Roadshow| 18 Nov 201911
▪ Top of Life Experience - Grand Opening event in Aug-19 ▪ Cumulative net sales of 52 units up to end of 3Q19 with a total of 44 units transferred ▪ Top-floor, the One&Only Duplex Penthouse sold in May-19 ▪ One of the Only Two 4BR Duplex sold and transferred in Sep-19 ▪ More sales and transfers of remaining backlogs expected throughout FY19 Official Launch & Grand Opening
Aug-19: Banyan Tree Residences Riverside Bangkok
3Q19 Quarterly Results | SET Digital Roadshow| 18 Nov 201912
Official Launch & Grand Opening
Aug-19 Outlook: Banyan Tree Residences Riverside Bangkok
3Q19 Quarterly Results | SET Digital Roadshow| 18 Nov 2019▪ Top of Life Experience - Grand Opening event in Aug-19 ▪ Cumulative net sales of 52 units up to end of 3Q19 with a total of 44 units transferred ▪ Top-floor, the One&Only Duplex Penthouse sold in May-19 ▪ One of the Only Two 4BR Duplex sold and transferred in Sep-19 ▪ More sales and transfers of remaining backlogs expected throughout FY19
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Official Launch & Grand Opening
Aug-19: Banyan Tree Residences Riverside Bangkok
3Q19 Quarterly Results | SET Digital Roadshow| 18 Nov 2019▪ Top of Life Experience - Grand Opening event in Aug-19 ▪ Cumulative net sales of 52 units up to end of 3Q19 with a total of 44 units transferred ▪ Top-floor, the One&Only Duplex Penthouse sold in May-19 ▪ One of the Only Two 4BR Duplex sold and transferred in Sep-19 ▪ More sales and transfers of remaining backlogs expected throughout FY19
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Official Launch & Grand Opening
Aug-19: Banyan Tree Residences Riverside Bangkok
3Q19 Quarterly Results | SET Digital Roadshow| 18 Nov 2019▪ Top of Life Experience - Grand Opening event in Aug-19 ▪ Cumulative net sales of 52 units up to end of 3Q19 with a total of 44 units transferred ▪ Top-floor, the One&Only Duplex Penthouse sold in May-19 ▪ One of the Only Two 4BR Duplex sold and transferred in Sep-19 ▪ More sales and transfers of remaining backlogs expected throughout FY19
Financial Results
SET Opportunity Day
3 Dec 2019
Revenue from sales of real estate 633
88%498
84%565
88%Revenue from construction contracts 65
9%46
8%24
4%Revenue from sales of goods 17
2%50
8%52
8% 207% 4%Total revenues 715 100% 594 100% 640 100%
Costs of real estate sold 369
52%330
55%300
47%Costs of construction 66
9%39
7%23
4%Costs of goods sold 16
2%40
7%45
7% 173% 11%Total costs 450
63%409
69%368
57%Gross profits 265
37%185
31%273
43% 3% 47%Other incomes 8
1%30
5%7
1%Selling expenses
Administrative expenses
Gain (loss) from exchange rate, net (0.3)
0%(0.9)
0%0.4
0% 232% 141%Financial costs (interest expenses)
Profits before share of profits from JV 114
16%26
4%53
8%Share of profits/(losses) from JV
Income taxes
Net profits 89
12%20
3%42
6%Other comprehensive income, net of tax
Total comprehensive income 89
12%20
3%42
6%3Q18 3Q19
%Change2Q19
Quarterly: yoy & qoq3Q19 Financial Results
Inevitable Negative Industry Sentiment
Consolidated Statements of Incomes
Strong Presales Helped Boost Backlogs ▪ NVD’s first low-rise condominium, the MOST Issaraphap, launched in late June 2019 with great success ▪ About 85%, sold during the VVIP event and Official Presales event held on 23 and 30 June 2019 respectively, generating backlogs of Bt.550m ▪ The Environmental Impact Assessment (EIA) approval is expected within 4Q19, and the construction works should take approximately 1.5 years. Inevitable Negative Sentiment ▪ High-rise residential transfers of Banyan Tree Residences Riverside Bangkok continued to fuel top-tine growth of 40%, transferring another 4 units to customers ▪ Softer revenue from sales of landed residential projects from stringent mortgage approval despite strong presales
Srinakarin-Rama9, and Nirvana @WORK Financial Costs Up ▪ Interest expenses from BTRRB project finance and non- capitalized working capital loan interests Other Income Up ▪ Main items were cash deposits of some BTRRB units being forfeited as some conditions in the Sales-Purchases Agreements were breached 16
Top-line Growth Continued
9M19 Financial Results
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Consolidated Statements of Incomes
Top-line Growth Continued ▪ Gloomy economic outlook, both globally and locally, inevitably impacts consumer sentiments and delays demand for high-end items ▪ Banks’ more stringent mortgage financing criteria due to rising household debt level obstructed intention to transfers for some homebuyers ▪ Total revenues of Bt.2,120m in 9M19, compared to Bt.1,681m in 9M18, growing 26% yoy. ▪ Nirvana @WORK Ramintra transferred 9 units, strong rebound in contributing to Sales of Real Estate in 9M19 ▪ BTS Pink Line expected to continue as a strong catalyst Selling Exp Up Slightly, Admin Exp Inline: ▪ Selling expenses related to marketing activities and sales commissions expenses related to transfers of BTRRB units ▪ General administrative expenses increased mainly from employees’ related expenses Net Profit Down: ▪ Relatively slower growth rate of net profits was a result of the significantly higher interests from the BTRRB project finance loan no longer being capitalized. Blended Gross Margin Slightly Improved in Percentage Term: ▪ Main contribution was gross margin of Sales of Real Estate segment ▪ BTRRB contributed to 40% gross margin of Sales of Real Estate in 9M19, contributing to almost 50% of total gross profit for the period and sales of 6-rai land on the south- side of Srinakarin-Romklao Road landbank
34% 9M18 9M19LTV
Comparative Operating Performance %Change Bt.m % Bt.m % yoy Revenues:Revenue from sales of real estate 1,340
80%1,807
85% 35%Revenue from construction contracts 244
15%157
7%Revenue from sales of goods 97
6%157
7% 61%Total revenues 1,681 100% 2,120 100%
26% Costs:Costs of real estate sold 809
48%1,076
51% 33%Costs of construction 212
13%143
7%Costs of goods sold 81
5%132
6% 63%Total costs 1,101
66%1,351
64% 23%Gross profits 580
34%769
36% 33%Other incomes 56
3%43
2%Selling expenses
Administrative expenses
Gain (loss) from exchange rate, net
0.2
0% 105%Financial costs (interest expenses)
Profits before share of profits from JV 209
12%178
8%Share of profits/(losses) from JV
Income taxes
Net profits 172
10%140
7%Other comprehensive income, net of tax
Total comprehensive income 172
10%142
7%9M18 9M19
36%18
Consolidated Statements of Financial Positions
Overall balance sheet size increased 10% from YE18 on land for new project and financing activities ASSETS ▪ Inventory and Costs of Property Development increased from: ▪ Cash & Cash Equivalents and Inventories & Costs of Property Development increase from the acquisition of 43.7-rai Bangna-Kingkaew land of approximately Bt.400m acquired in Feb-19. LIABILITIES ▪ Reclassification of Bt.446m Land purchase payable for 71.5-rai land plot in the north-side of Krungthep-Kreetha landbanks from non-current liabilities to current liabilities. ▪ The land was acquired in 1Q18 and paid by AVAL promissory note due in 1Q20. ▪ Interest-Bearing Debts increased due to: ▪ Bridging loan for 43.7-rai Bangna-Kingkaew land acquisition in Feb-19 ▪ Bt.283m Debentures No.1/2019 to refinance the prior Bt.200m of similar debenture. ▪ Additional long-term loan of 1,450m in 3Q19.
9M19 Financial Results
Financial Strength Continued
Consolidated Statements of Financial Position
Bt.m % Bt.m % Bt.m %Assets: Cash and cash equivalents 1,104
9%1,769
13%665
60%Inventories & Costs of property development 8,411
68%8,960
65%549
7%Other current assets 23
0%32
0%9
40%Total current assets 10,052
81%11,254
82%1,202
12%Restricted bank deposits 27
0%10
0%Property, plant and equipment, net 503
4%542
4%39
8%Other non-current assets 227
2%297
2%71
31%Total non-current assets 2,400
19%2,490
18%90
4%Total assets 12,452
100%13,745
100%1,292
10%Liabilities: Land purchase payables due within one year 57
0%503
4%446
784%Interest bearing debts due within one year 2,052
16%4,222
31%2,170
106%Deposits and advance received from customers 338
3%100
1%Total current liabilities 3,361
27%5,592
41%2,231
66%Land purchase payables 503
4%57
0%Interest bearing debts due over one year 3,760
30%3,233
24%Total non-current liabilities 4,298
35%3,328
24%Total liabilities 7,659
62%8,919
65%1,261
16%Total equity 4,794
38%4,825
35%32
1%Total liabilities and equity 12,452
100%13,745
100%1,292
10% Remarks: Total land purchase payables 560 4% 560 4% 0% Total interest-bearing debts 5,813 47% 7,455 54% 1,642 28%Changes YE18 3Q19
Outlook
SET Opportunity Day
3 Dec 2019
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10.Nirvana DEFINE - Rama 9 11.Nirvana DEFINE - Srinakarin-Rama 9 12.Nirvana @WORK - Ramintra 13.Nirvana @WORK - Ladprao-Kaset Nawamin 14.BANYAN TREE Residences Riverside Bangkok 15.The MOST - Issaraphap
Single Detached Homes Townhomes Home Offices Condominium
1 2 4 5 6 7 8 9 10 12 13 14 114Q19 Outlook: On-going Projects
15As of Sep 30, 2019
Projects Project Values Price Range Total Project Sold Transferred Backlog Available for Sales Single Detached Homes Nirvana BEYOND - Kaset Nawamin Ph.1 1,069 12-35 67 66 66 1 Nirvana BEYOND - Srinakarin 982 13-35 58 58 56 2 Nirvana BEYOND - @Beach 424 15-20 21 1 1 20 Nirvana BEYOND - Kaset Nawamin Ph.2 716 15-30 37 35 35 2 Nirvana BEYOND - Rama 2 Ph.1 1,630 16-60 66 22 19 3 44 Nirvana BEYOND - Rama 2 Ph.2 979 14-30 54 9 3 6 45 Nirvana BEYOND - Udonthani 529 25-30 40 4 4 36 Nirvana BEYOND - Rama9-Krungthepkreetha 2,928 23-60 85 2 2 83 ICON - Pinklao 187 16-23 28 4 2 2 24 The TARA - Ramintra 279 4-10 54 39 39 15 Townhomes CLUSTER by Nirvana - Ratpattana 101 3-8 20 11 11 9 COVER by Nirvana - On-nut 550 2-6 194 193 193 1 DEFINE - Srinakarin-Rama 9 1,900 7-20 173 81 56 25 92 Home Offices @WORK - Ramintra 1,034 13-25 61 41 39 2 20 @WORK - Ladprao-Kaset Nawamin 1,051 13-31 56 28 21 7 28 Condominium BANYAN TREE Residences Riverside Bangkok 6,654 20-300 133 52 44 8 81 The Most - Itsaraphap 701 2-8 193 176 176 17
Estimated Values (Bt.m) 2,045 12,516
Bt.m #Units
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4Q19 Outlook: On-going Projects
Projects in High-potential Areas
Develop-for-Sales
4Q19 Outlook: Banyan Tree Residences Riverside Bangkok
▪ Global roadshows continued ▪ Tapping European markets ▪ Collaborations with Banyan Tree
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3Q19 Quarterly Results | SET Digital Roadshow| 18 Nov 201923
▪ Phase 2 launched in Jun-19 ▪ Cumulative sales of 81 units up to end of 9M19 with a total of 56 units transferred ▪ Backlogs of 25 units expected to be transferred within 1Q20 ▪ Flyover bridge over Kanchanapisek Outer Ring Road opened to public use in Oct-19
4Q19 Outlook: Nirvana DEFINE Srinakarin-Rama 9
Develop-for-Sales
3Q19 Quarterly Results | SET Digital Roadshow| 18 Nov 201924
Club House & Facilities4Q19 Outlook: Nirvana BEYOND Rama9-Krungthep Kreetha
Develop-for-Sales: JV Project ▪ Official Launch & Grand Opening event in Apr-19 ▪ Cumulative sales of 8 units up to end of 9M19 with a total of 4 units of backlogs ▪ More sales expected with developments of nearby infrastructure and other projects ▪ Flyover bridge over Kanchanapisek Outer Ring Road opened to public use in Oct-19
3Q19 Quarterly Results | SET Digital Roadshow| 18 Nov 2019Strategic Intent
SET Opportunity Day
3 Dec 2019
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209.7rai
82.9 acresSrinakarin-Romklao Road
Rattanathibet Road
POTENTIAL PROJECT VALUE
Bt.
7.9rai 4.5rai
3.1 acres 0.7 acresHIGH-POTENTIAL, QUALITY ASSETS
106.5 acresStrategic Intents: Land Acquisition Strategy
Towards Township Development
NET ASSET VALUE*
Bt.
* Landbanks’ Market Values – Corresponding Debts43.5ai
17.3 acres3.8rai
1.5 acres27
Strategic Intents: New Product Offerings
More Detailed Segmentation & Product Variety
High-end 3-storey Single-detached Houses 3-4-storey Townhouses 4-storey Home Offices
House Type Price Range
Bt.25-50m Bt.8-15m Bt.10-30m
Household Incomes
Premium 3-storey Single-detached Houses Bt.40-80m Bt.500-1,000k Bt.300-500k 3-storey Single-detached Houses Bt.15-25m Bt.200-300k 2-storey Single-detached Houses Bt.10-20m Bt.8-15m Bt.150-300k Bt.100-200k Bt.200-400k
new new new
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Strategic Intents: Community Design & Township Development
Highest Value Extraction ▪ Land acquisition cost management while optimizing values ▪ “Turnkey Solution” where applicable ▪ Full-range of product spectrum ▪ Multiple-project, single-area efficiency ▪ Community services to enhance project values Krungthep-Kreetha TOWNSHIP Bangna-Kingkaew TOWNSHIP
Bangna Att U Park
Strategic Intents: Community Design & Township Development
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▪ Nirvana BEYOND Bangna-Att U Park ▪ 35 units of all-new Nirvana BEYOND series ▪ Land size of 9.1 rai in Bangna-Kingkaew area ▪ Turnkey Solution Project (Partnership with Landlord) in Bangna-Trad km.12 ▪ Income recognition only on home building contracts (53%) ▪ Expected launch in 2H19
Project Value
Bt.1,000m
Project Value
▪ Nirvana ELEMENT Bangna-Kingkaew ▪ 157 units of all-new product segment of 2-storey SDH series: ▪ Land size of 43.5 rai in Bangna-Kingkaew area ▪ 100% owned project, full-project economics recognition ▪ Expected launch in 2H19
Bt.1,870m
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Bangna-Kingkaew TOWNSHIP Krungthep-Kreetha TOWNSHIP
SD4 ACTIVE MALL SD5 LIFESTYLE MEDICAL
Strategic Intents: Township Development
Highest Value Extraction
ACQUIRING LAND IN CLUSTERS
Optimized Costs LandAcquisition Range ProductSpectrum
Full OptimizedOPEX & ImprovedEfficiency Extra Facilities Enhancing Project Values
Quarterly Results
Contact: IR@nirvanadaii.com Kanlayanee Panthong, DBA. AVP – Investor Relations +662 105 6789 x505