Analysts Day 1 Disclaimer The information (Confidential - - PowerPoint PPT Presentation

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Analysts Day

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Disclaimer

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.

Profit & Loss Statements

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• PPA written off in 1Q13 is 57 mil Baht; 10 mil

Baht to cost, 61 mil Baht to SG&A and 14 mil Baht add back to CIT.

• There is 54 mil Baht outstanding of PPA at end
• f 1Q13.
• SG&A increased due to the launch of Elio

Sukhumvit 64.

• Gross margin improved QoQ due to transfer of

Morph and ADO

Profit & Loss ADC Conso

Currency: THB Million

1Q12A 1Q13A Total Revenues 387 1,050 Total Costs (256) (627) SG&A (272) (306) Share of Profit/(Loss) (1) EBITDA (141) 118 Depreciation (18) (22) EBIT B4 FV Adjustment (159) 96 Negative Goodwill

• Amoritized Fair Value

(43) (57) EBIT (202) 39 Interest Expenses (Buyout) (98)

• Interest Expenses

(2) (8) Deferred Tax 53 10 CIT (9) (36) Net Profit/(Loss) (258) 5 Basic earning per share (0.13) 0.001 (Mil. hares) 2,000 3,333 Key Ratios Gross Profit (%) 33.8% 40.4% EBITDA (%)

• 36.5%

11.2% NPAT (%)

• 66.7%

0.5% SG&A to Revenues 70.1% 29.1%

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Balance Sheet

Balance Sheet

Currency: THB Million

4Q12A 1Q13A Cash & Cash Equivalent 2,246 1,895 Inventory - Development Costs 6,015 7,072 Fixed Assets 530 551 Intangible Assets 155 92 Other Assets 552 674 Total Assets 9,498 10,284 Trade Accounts Payable 349 512 Advances Received from M-Fee Revenue

• Advances Received from Customers

793 834 Interest Bearing Debts 2,149 2,803 Other Liabilities 1,137 1,063 Total Liabilities 4,428 5,212 Equities 5,544 5,544 Surplus on Business Combination 8 5 Retained Earnings (482) (477) Total Shareholders' Equity 5,070 5,072 Total Liabilities and Shareholders' Equity 9,498 10,284 Key Ratios DE ratio (total debts) 0.87 1.03 DE ratio (interest baring debts) 0.42 0.55 DE ratio (net debts) Net Cash 0.18 BV per share (Baht) 1.52 1.52

2013 Business Plan

• Planned acquisition 15 projects total value 27,000. Already secured 17,400 and to be secured 5 projects 9,600
• Planned launch of 13 projects with a total value of 24,000
• Planned presales are 14,900; AD2 – sold out, Mobi – 95% sold, ADO – 38% sold, Elio SKV64 50% sold, New IDEO 70%

sold, AD14 50% sold and AD15 40% sold

• Planned revenue 12,000 with 65% secured backlog
• 13,700 remaining for sale at end of 2013 with 10,700 backlog; of which 8,100 will transfer in 2014 and 2,600 in 2015

All figures in millions Thai Baht

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Project Value Backlog Launch Presales Revenue Available for Sale

Forcast Year End Backlog to be Recognized in

% GDV % GDV

2014 2015

Existing AD2 2,800 1,000 1,800 100% 2,800 100%

• -

AD3 9,600 6,800 2,200 95% 6,700 70% 600 2,300 Subtotal 12,400 7,800 4,000 95% 9,500 600 2,300 Already Acquired ADO 7,300 7,300 2,800 38% 2,500 34% 4,500 300 AD14.1 4,600 4,600 2,300 50% 2,300 2,300 AD14.2 2,100 2,100 1,500 70% 600 1,500 AD14.3 3,400 3,400 1,700 50% 1,700 1,700 Subtotal 17,400 17,400 8,300 48% 2,500 9,100 5,800 To be Acquired AD15 (3 projects) 6,600 6,600 2,600 40% 4,000 2,600 AD15 (2 projects) 3,000 Subtotal 9,600 6,600 2,600 39% 4,000 2,600 Grand Total 39,400 7,800 24,000 14,900 62% 12,000 13,700 8,100 2,600

2013 Quarterly Sales & Transfers

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All figures in millions Thai Baht

Presales Guidance 1Q13 Actual Difference 2Q13 3Q13 4Q13 Total AD2 400 1004 251% 350 250 196 1,800 AD3 500 680 136% 500 600 420 2,200 ADO 300 387 129% 800 900 800 2,887 AD14 500 874 175% 900 2,300 1,800 5,874 AD15 2,600 2,600 Total 1,700 2,945 173% 2,550 4,050 5,816 15,361 Revenue 1Q13 Actual 2Q13 3Q13 4Q13 Total AD2 1,000 965 748 600 600 2,913 AD3 6,700 6,700 ADO 37 98 470 1,895 2,500 Total 1,000 1,002 846 1,070 9,195 12,113

2,945 5,495 9,545 15,361 1Q13 2Q13 3Q13 4Q13 AD15 AD14 AD3 AD2 ADO Total 2,550 4,050 5,816

Presales

37 98 470 1,895 965 748 600 600 6,700 1,002 1,848 2,918 12,113 1Q13 2Q13 3Q13 4Q13 AD3 AD2 ADO Total 846 1,070 9,195

Revenue

Mobi Progress

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Track Progress

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Acquisition

• Hundreds of land plot details

are kept as Google pins along the current and upcoming mass transit lines.

• Information on each plot has

been developed to a level that can calculate the maximum purchase price.

• Plots are prioritized on the

tradable value based on the current market situation.

• Land plots with inheritance or

tenant issues are worked on by

• ur experienced legal team to

remove all legal risk.

Skytrain Progress

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Under Construction

• Dark Green Line (Wongweinyai – Bangwa) Completed

in 2014

• Light Green Line (Bangna –Samutprakarn)

Completed 2015

• Purple Line (Bangsue – Bangyai) Completed in 2016
• Blue Line (Haulampong – Bangkae) and (Bangsue

Thapra) Completed in 2017

• Light Red Line (Bangsue – Talingchan) Completed in

2016

• Red Line (Bangsue – Rangsit) Construction started,

Completed in 2017

Approved and Bidding in 2013

• Light Green Line (Morchit – Sapanmai-Lumluka)
• Pink Line (Kaelai-Minburi)
• Orange Line (Cultural Center-Minburi)
• Red Line (Rangsit - Thammasat)

Approved and Bidding in 2014

• Purple Line (Bangsue –Rachburana)
• Orange Line (Cultural Center-Talingchan)
• Yellow Line (Samrong-Lumsali)

Source : MRTA

Bubbles

Condo Price Appreciation New Condo Supply

Source : AREA

• Condo prices in the CBD have appreciated at a

modest 3-5% CAGR while they have jumped 10% CAGR around mass transit stations over the last few years.

• New condo launches have risen from 36% of the

total supply of residential units in 2005 to 55-60%

• ver the last few years and grown at 24.1% CAGR

from 2005-12 with impressive take-up rates of 35- 60% in the first month from launch.

• Demand is driven by expansion of the mass transit

system, oil price increases, and affordability (3 mil Baht and below makes up 74% of total supply).

• End user demand makes up 70% of buyers while

30% are investors

• BOT has so far not issued any measures to disrupt

the property industry. Comments given to the press are to prevent any bubbles forming.

Interest Rate and Mortgage

• The interest rate will remain low with downtrend in sight. MLR

(Minimum Lending Rate) is at 7.0% while 1-year fixed deposit rate is at 2.25%.

• Currently the company financial cost for development loan is

MLR-1% (6%) with LTV 60% for land and 70% for construction.

• Main bankers are KTB, BBL, Kbank, Kiatnakin, CIMB
• Banks are still supportive for the housing loan with growth at 20%

pa.

• Mortgage rate currently being offered is averaged at 4-4.5% for

the first 3 years and MLR-1% (6%) for the remaining years. The teaser rate for the first year is as low as 0.5-1% or even 0% for the first 6-9 months and may include subsidizing of the mortgage registration fee (1% of mortgage amount).

• LTV (loan to value ratio) announced by Bank of Thailand is 90%

for condo and 95% for housing.

• We have open policy for the mortgage banks to join but will give

top priority for the banks who finance loan for development.

% %

Bn THB

Mortgage Affordability

Baht Unit Price 1,000,000 Payment at SPA (5%) 50,000 Down Payment (10%) 100,000 Down Payment Installment per month (18 months) 5,600 Mortgage Amount 850,000 Mortgage per month (6% pa) 5,100 Income per month required (3 times) 15,300

New Bangkok City Plan

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Execution

• Expected to take effect on 15th May 2013
• The third draft has been finalized and agreed

by: The Housing Business Association and The Thai Condominium Association.

• Both confirmed that there will be no change

from the third draft.

City Plan changes related to condominium development

• Red Zone – some areas have the restriction

that the building must be located on a road of at least 30 meters width or 10 meters width if located within 500 meters from a mass transit

• station. (The existing plan has no Red Zone

restrictions.)

• The Color Zones have been redrawn, which

affects the FAR (Floor Area Ratio) and OSR (Open Space Ratio) . All acquisition and development activities and plans of Ananda fully comply with the third draft of the new Bangkok City Plan.

Share Price Resilience

Company Current 52 week high 52 week low % from peak

LH 13.5 14.1 6.9 4% SPALI 21.6 24 14.7 10% QH 4.32 4.9 1.44 12% LPN 24.5 28 15.6 13% ANAN 4.24 5.05 3.6 16% AP 8.85 10.7 6.2 17% PS 29.25 35.5 12.6 18% SIRI 4.14 5.4 1.95 23%

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Company Current 52 week high 52 week low % from peak LH 12.6 14.1 6.9 11% ANAN 4.24 5.05 3.6 16% SPALI 20.1 24 14.7 16% QH 4.1 4.9 1.44 16% AP 8.75 10.7 6.2 18% PS 28.75 35.5 12.6 19% LPN 22.1 28 15.6 21% SIRI 4.02 5.4 1.95 26%

Thank you

Ananda Development PLC 2013

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