ASSET WORLD CORP PUBLIC COMPANY LIMITED Q1/2020 ANALYST MEETING - - PowerPoint PPT Presentation
ASSET WORLD CORP PUBLIC COMPANY LIMITED Q1/2020 ANALYST MEETING PRESENTATION 11 May 2020 1 A G EN D A AWC STRATEGY DIVERSIFIED PORTFOLIO COST CONTROL INITIATIVES COVID CRISIS Q1/2020 FINANCIAL PERFORMANCE
11 May 2020
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B U I L D I N G A B E T T E R F U T U R E
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5 - Y R S T R A T E G I C T A R G E T C O R E S T R A T E G Y
Most Admired Real Estate Group (World Class Standard) Robust & Sustainable Growth with EBITDA CAGR > 15% Maximize Shareholder’s Return (ROE > 15%)
GLOBAL AND UNIQUE PARTNER SYNERGY & SUSTAINABILITY NEW BENCHMARK GROWTH-LED STRATEGY
MIDDLE TO HIGH INCOME CUSTOMER SEGMENT
Real Estate Investor/Developer/Manager Scalable Frontier Projects Focus (Mixed-Used Development ) Outstanding Return on Investment Strong Development Capabilities International customers base diversification and portfolio diversification throughout key cities
F U N D A M E N T A L / B U S I N E S S M O D E L 5
The Flagship Freehold Hospitality and Commercial Platform to Access the Attractive Thai Market
OPERATING HOTELS WITH 4,869 GUEST ROOMS OPERATING RETAIL PROPERTIES WITH THE TOTAL NLA OF 198,781 SQM
OFFICE BUILDINGS WITH THE TOTAL NLA OF 270,594 SQM
R E TA I L & C O M M E R C I A L H O S P I TA L I T Y
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Meeting / event space (sqm) (1)
easily accessible locations surrounded by vibrant shopping, business and entertainment districts 27 13,706 4
from shopping districts and other tourist destinations 11 1,729 4
beachfront properties, targeting leisure travelers of all types 9 268 2
Expansive event spaces with many F&B options Centrally located with well-equipped facilities Exclusive beachfront properties Award-winning hotels catering to wide clientele
Iconic assets in prime city and resort locations, leveraging top global operators
that receive a high level
customers 6 23 5,069 Bangkok City Hotels Non-Bangkok, Luxury Resorts Other Non- Bangkok Hotels MICE and F&B Destination Hotels
2,305 923 167 1,474
As at Mar 2020
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NLA (sqm) Key Anchor Tenants Tourist Lifestyle Destination (1)
tourist lifestyle destination, and the first uniquely themed riverfront shopping and travel destination in Bangkok 1 26,590 World class shows and events, night market, local products, food stalls Community Shopping Malls and Markets (2)
malls and low-rise complexes, catering to the daily needs of local community 8 172,191 Supermarkets/hypermarkets, cinemas, education, fitness centers and restaurants
platform under two key brands: AEC Trade Center and AEC Trade Center Online 1 ~145,000 Wholesale Retail Properties (3) Manufacturers, retailers, exporters, and logistic and financial service providers
Notes:
Expansion
Unique location by the Chao Praya River Next to mass transport in residential communities Close to well-established transport links Prime central Bangkok close to transport nodes
Office
located at transportation nodes in business districts
KPMG, Samsung, US Embassy, Tokyo Marine, Deutsche Bank, Nation Multimedia Group 4 270,594
Barbell retail strategy with unique destination and community retail and strong upside potential Prime central Bangkok offices provide stable cash flow
As at Mar 2020
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for guestroom supplies
effective raw material sourcing strategy for F&B Outlets
policy and reschedule maintenance plans
most effective level
efficiency and adjust operating hours
reduce overtime expenses
measures in order to cope with COVID-19 situation
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163 105 101 114 90 78
ROOM EXPENSE UTILITES EXPENSE MARKETING EXPENSE
493 221 426 143
STAFF EXPENSE F&B COST
74 68 62 49
CENTRAL UTILITIES EXPENSE STAFF EXPENSE
60 48 20 64 45 11
RENTAL AREA UTILITIES EXPENSE SAFETY AND CLEANILNESS EXPENSE MARKETING EXPENSE
5.6%
1Q2019 1Q2020 1Q2019 1Q2020
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B U I L D I N G A B E T T E R F U T U R E
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JAN2020 JAN 2020 FEB 2020 FEB 2020 FEB 2020 FEB 2020 MAR 2020 MAR 2020 MAR 2020 MAR 2020 MAR 2020 MAR 2020 1Q2020
COVID-19 has started spread out
severe cases were discovered in Wuhan, China. AWC monitored closely on the cancellation of the guests from China and prepared for cost controlling, if needed. AWC set up the thermo scan for each property and tested run of WORK FROM HOME process. AWC monitored on the cost and executed the Cost Efficiency Initiatives for HOTEL Group, RETAIL & COMMERCIAL Group, and CORPORATE Group AWC provided the discount
whose businesses are affected from COVID-19. AWC set up the COVID-19 COMBAT Team (MCOM Members) to solve COVID-19 issues at the property level. Bangkok Metro Administration announced the Lock Down of Bangkok. AWC provided 50% discount for the tenants of RETAIL & COMMERCIAL Group. Thai Government planned to apply Curfew to control COVID-19 situation. AWC set up the regular COVID- 19 update (MCOM Members) on daily basis. AWC temporarily shut down 5 hotel
Plaza Athenee Bangkok is fully
AWC waived (100%)
tenants who had to temporary close their shops because of the Curfew and Bangkok shutdown. 13
NET INCOME HOTEL - REVENUE REVENUE RETAIL - REVENUE OPERATING EXPENSE OFFICE - REVENUE
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** (In comparison to the same period in the previous year) 14
Segment 1Q2019 1Q2020 Growth %
MICE BANGKOK CITY LUXURY RESORT NON- BANGKOK
Occupancy rate
Average Daily Rate
79.3% 4,686 (Baht/Night)
Revenue Per Available Room
3,716 (Baht/Night) Occupancy rate
Average Daily Rate
51.6% 4,501 (Baht/Night)
Revenue Per Available Room
2,325 (Baht/Night) Occupancy rate
Average Daily Rate
(34.9%) (3.9%)
Revenue Per Available Room
(37.4%) Occupancy rate
Average Daily Rate
91.8% 4,088 (Baht/Night)
Revenue Per Available Room
3,753 (Baht/Night) Occupancy rate
Average Daily Rate
59.5% 3,587 (Baht/Night)
Revenue Per Available Room
2,134 (Baht/Night) Occupancy rate
Average Daily Rate
70.7% 17,446 (Baht/Night)
Revenue Per Available Room
12,329 (Baht/Night) Occupancy rate
Average Daily Rate
48.4% 17,003 (Baht/Night)
Revenue Per Available Room
8,229 (Baht/Night) Occupancy rate
Average Daily Rate
76.3% 5,399 (Baht/Night)
Revenue Per Available Room
4,120 (Baht/Night) Occupancy rate
Average Daily Rate
42.1% 5,260 (Baht/Night)
Revenue Per Available Room
2,213 (Baht/Night) Occupancy rate
Average Daily Rate
(35.2%) (12.3%)
Revenue Per Available Room
(43.1%) Occupancy rate
Average Daily Rate
(31.5%) (2.5%)
Revenue Per Available Room
(33.3%) Occupancy rate
Average Daily Rate
(44.9%) (2.6%)
Revenue Per Available Room
(46.3%)
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Segment 1Q2019 1Q2020 Growth %
TOURIST LIFESTYLE DESTINATION COMMUNITY SHOPPING MALLS COMMUNITY MARKET COMMERCIAL
Occupancy rate = 96% Rent Rate 1,416 (Baht/sq. m./mth) Occupancy rate = 87% Rent Rate 1,304 (Baht/sq. m./mth) Occupancy rate = 66% Rent Rate 775 (Baht/sq. m./mth) Occupancy rate = 68% Rent Rate 643 (Baht/sq. m./mth) Occupancy rate = 42% Rent Rate 1,472 (Baht/sq. m./mth) Occupancy rate = 46% Rent Rate 1,058 (Baht/sq. m./mth) Occupancy rate = 85% Rent Rate 710 (Baht/sq. m./mth) Occupancy rate = 82% Rent Rate 734 (Baht/sq. m./mth) Occupancy rate = (9.8%) Rent Rate = (7.9%) Occupancy rate = 3.2% Rent Rate = (17.1%) Occupancy rate = 9.7% Rent Rate = (28.1%) Occupancy rate = (3.3%) Rent Rate = 3.5%
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MICE, 53% BANGKOK CITY, 13% LUXURY RESORT, 10% NON-BANGKOK, 24% 2,471 1,529
1Q2019 1Q2020
2,404 1,535
1Q2019 1Q2020
Financial Statement Operating Asset Portfolio
Proportion
‘DIRECT IMPACT FROM LOWER NUMBER OF TOURISTS AS A RESULT OF COVID-19 PANDAMIC’
1,238 808 1Q2019 1Q2020 228 154 1Q2019 1Q2020
MICE BANGKOK CITY LUXURY RESORT NON- BANGKOK
360 205 1Q2019 1Q2020 579 368 1Q2019 1Q2020
53%* 13%* 10%* 24%*
Operating Asset Portfolio Operating Asset Portfolio Operating Asset Portfolio Operating Asset Portfolio
* (Proportion of the revenue to the total revenue of the hospitality group)
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Commercial, 60% Community Shopping mall, 22% Toursit Destination, 11% Community Market, 7% 1,053 965
1Q2019 1Q2020
1,139 1,014
1Q2019 1Q2020 145 116 1Q2019 1Q2020 117 67 1Q2019 1Q2020
TOURIST LIFESTYLE DESTINATION COMMUNITY SHOPPING MALLS COMMUNITY MARKET COMMERCIAL
263 223 1Q2019 1Q2020 614 609 1Q2019 1Q2020
11%* 22%* 7%* 60%*
Financial Statement Operating Asset Portfolio
Proportion
‘LOWER REVENUE RESULTING FROM DISCOUNTS PROVIDED TO SUPPORT TENANTS. HOWEVER, COMMERCIAL YEILDS A SOLID REVENUE GERNERATION’
Operating Asset Portfolio Operating Asset Portfolio Operating Asset Portfolio Operating Asset Portfolio
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* (Proportion of the revenue to the total revenue of the retail and commercial group)
1,903 1,411
1Q2019 1Q2020
1,752 1,364
1Q2019 1Q2020
1,453 1,093
1Q2019 1Q2020
1,390 1,075
1Q2019 1Q2020 EXPENSE OF OPERATION BU
Financial Statement Operating Asset of the Company
EXPENSE OF HOSPITALITY EXPENSE OF RETAIL &COMMERCIAL
503 318
1Q2019 1Q2020
361 289
1Q2019 1Q2020
Financial Statement Operating Asset of the Company Financial Statement Operating Asset of the Company
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CENTRALISED HOTEL MANAGEMENT AT THE ATHENEE HOTEL BANGKOK, A LUXURY COLLECTION EFFECTIVELY CONTROLED OPERATING COST PER REVENUE OF RETAIL TO BE 36.9% FROM 40.8% (YOY)
**(The proportion of the year 2019 for Hospitality, Retail and Commercial are 45%,22% and 33%, respectively.)
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MICE, 57% BANGKOK CITY, 13% LUXURY RESORT, 10% NON- BANGKOK, 20% 1,018 436
1Q2019 1Q2020
1,014 460
1Q2019 1Q2020 515 263 1Q2019 1Q2020 96 47 1Q2019 1Q2020
MICE BANGKOK CITY LUXURY RESORT NON- BANGKOK
168 58 1Q2019 1Q2020 235 92 1Q2019 1Q2020
57%* 13%* 10%* 20%*
Financial Statement Operating Asset Portfolio
Proportion
Operating Asset Portfolio Operating Asset Portfolio Operating Asset Portfolio Operating Asset Portfolio
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* (Proportion of the revenue to the total revenue of the hospitality group)
Commercial, 65% Community Shopping mall, 18% Toursit Destination, 11% Community Market, 7% 550 645
1Q2019 1Q2020
777 725
1Q2019 1Q2020 99 83 1Q2019 1Q2020 92 44 1Q2019 1Q2020
TOURIST LIFESTYLE DESTINATION COMMUNITY SHOPPING MALLS COMMUNITY MARKET COMMERCIAL
120 132 1Q2019 1Q2020 466 467 1Q2019 1Q2020
11%* 18%* 6%* 65%*
Financial Statement Operating Asset Portfolio
Proportion
+17.6%
+10.0% +0.2%
‘LOWER FLOW THROUGH DUE TO DISCOUNTS PROVIDED TO TENANTS BUT LOWER EFFECT BECAUSE OF COST CONTROL INITIATIVES’
Operating Asset Portfolio Operating Asset Portfolio Operating Asset Portfolio Operating Asset Portfolio
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* (Proportion of the revenue to the total revenue of the retail and commercial group)
KEY HIGHLIGHT
202 127
1Q2019 1Q2020
243 108
1Q2019 1Q2020
CORPORATE EXPENSE
39.5% 38.8%
1Q2019 1Q2020
1,441 975
1Q2019 1Q2020
CORPORATE EBITDA EBITDA MARGIN NET PROFIT
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COST CONTROL AND WELL DIVERISFIED PORTFOLIO HAVE ENABLED, THE COMPANY TO MAINTAIN THE CORPORATE EBITDA MARGIN DEPSITE THE COVID-19 IMPACTS. COST CONTROL INNITIATIVES HAVE LESSENED THE CORPORATE EXPENSES.
** (THE DIFFERENCE BETWEEN EBITDA MARGIN)
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25 Causes of the DIFFERENCE between the Equity of the end of Q1/2020 (graph 3) and that of the end of Q4/2019 (graph 1) were;
value,
Remark:* The acquisition of asset group3, occurred at the beginning of 2020, was reflected in the financial statements based on the business combination of entities under common control principle which require restate of financial statements backwards in 2019. Thus, the equity of Q4/2019 was restated to be 90,806 million baht (graph2) which was derived from the original equity of 75,662 million baht (graph1) plus the total equity of asset group3 in an amount of 15,267 million baht without any elimination for acquisition consideration payment (as payment was made in Q1/2020) and the adjustment of related transaction of 122 million baht. 109,158 75,662 33,496
Asset Liabilities & Equity
Debt to Equity Ratio 0.4 TIMES
Q4/2019 (Graph 1)
136,493 90,806 45,687
Asset Liabilities & Equity
Q4/2019* (Graph 2)
124,835 73,569 51,266
Asset Liabilities & Equity
Q1/2020 (Graph 3)
Debt to Equity Ratio 0.5 TIMES Debt to Equity Ratio 0.7 TIMES
*(Restated statement of Financial Position 2019)
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* * ( THE RETURN ON LAND APPRECIATION FROM THE APPRAISED LAND VALUE SHOWS THE GROWTH OF 5.49% AT THE END OF 2019)
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B U I L D I N G A B E T T E R F U T U R E
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In light of the outbreak of the Coronavirus disease 2019 (COVID-19), Asset World Foundation for Charity (AWFC) in the collaboration with Bangkok Marriott Marquis Queen’s Park, one of 16 hotels
Limited (AWC) recently donated bed and bedding to Bamrasnaradura Infectious Diseases Institute. AWFC is committed to building a better future and contributing values and benefits to communities, society, environment and the nation. Hence, bed and bedding donation by AWFC to one of COVID- 19 major treatment centers in Thailand will support a critical need in adequate capacity to care for increasing COVID-19 patients.
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In April 2020, AWC organized the "Serve to Safe" charity project with the concept of using quality produce sourced from local communities and Thai farmers to serve specially crafted menu by a team of 10 highly skilled 5-star hotel chef volunteers from 6 AWC hotels. The project would promote sustainable supply chain and generate revenue for local communities and Thai farmers during this difficult time. The "Serve to Safe" charity project raised over 5 million baht through food orders, AWC Prestige, and
medical equipment through Asset World Foundation for Charity to present to 22 hospitals facing shortage throughout the country to support highly dedicated frontline medical workers treating and caring for COVID-19 patients.
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The GALLERY is not-for-profit art & design gift collection which embodies its firm belief, Giving Art, Art of Giving that features products created by Thailand’s most talented designers, artists, and entrepreneurs. With all profits going to support further artistic endeavors, preserving and promoting Thai culture as well as areas in need. Each purchase of goods embraces socially responsible practices to contribute back to society and communities
Provide the entire art journey of creation, selling, giving back profits, act as the center of art communities through Art.
Cultivate Thai artistic communities through different channels in one converging platform
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LOCATIONS
EMPIRE TOWER ICONSIAM MARRIOTT HOTEL THE SURAWONGSE MARRIOTT PHUKET SPA AND RESORT NAI YANG BEACH MARRIOTT HUA HIN SPA AND RESORT THE RAWEEKANLAYA BANGKOK
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