ASSET WORLD CORP PUBLIC COMPANY LIMITED FY2019 ANALYST MEETING - - PowerPoint PPT Presentation
ASSET WORLD CORP PUBLIC COMPANY LIMITED FY2019 ANALYST MEETING PRESENTATION 28 February 2020 AG E ND A AWC STRATEGY 2019 FINANCIAL HIGHLIGHTS 2019 PERFORMANCE RESULTS ALIGNING WITH AWC STRATEGIES 2019 MAJOR MILESTONES
28 February 2020
AWC STRATEGY 2019 FINANCIAL HIGHLIGHTS 2019 PERFORMANCE RESULTS ALIGNING WITH AWC STRATEGIES 2019 MAJOR MILESTONES 2020 AWC TRANSFORMATION APPENDIX
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Asset World Corp Public Company Limited (“AWC”) is Thailand’s leading integrated lifestyle real estate group, a pure-play Thailand-focused real estate owner and developer, with a sustainable diversified development pipeline for future growth as well as the potential for long-term capital appreciation.
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
Maximize Shareholders’ Return (ROE > 15%) Robust & Sustainable Growth (EBITDA CAGR > 15%) Most Admired Real Estate Group (World Class Standard)
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
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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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Remarks: 1/ Revenue from Operating Assets
F I N AN C I AL R E C AP
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F/S : Financial Statement OA : Operating Assets of the Company
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12 F/S : Financial Statement OA : Operating Assets of the Company
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FY2019 NET OPERATING PROFIT (GROUP 1&2 ASSET) F/S : Financial Statement OA : Operating Assets of the Company
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Park Hotel
Resort, Koh Samui
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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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RAMP UP STRONG SEGMENT WITH HIGH GROWTH
MICE contribute 59% of the hospitality Revenue
MQP contribute 31% of the MICE segment Revenue
MICE contribute 59% of the hospitality Revenue
MQP contribute 31% of the MICE segment Revenue
59% 41%
HOSPITALITY
MICE OTHERS
31% 69%
MICE SEGMENT
MQP OTHERS
REVENUE GROWTH 1037% BU EBITDA GROWTH 225% REVENUE GROWTH 1037% BU EBITDA GROWTH 225% REVENUE GROWTH 175% BU EBITDA GROWTH 9245% REVENUE GROWTH 175% BU EBITDA GROWTH 9245%
1,275 1,031 1,484 2,248 2,566
2013 2014 2015 2016 2017 2018 2019
RevPAR (THB/night)
+110%
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171.6 211.1 583.2 4Q18 4Q19 FY2018 FY2019 2,529 2,676 2,247 2,566 4Q18 4Q19 FY2018 FY2019
One of only 10 Marriott Marquis hotels
globally, and the only one in Asia
One of the largest MICE hotel in Bangkok (1),
total of 1,388 rooms
28 meeting rooms, including 1 grand
ballroom and 1 great hall
Walking distance from well-known shopping
area in Bangkok e.g. District Em
One of only 10 Marriott Marquis hotels
globally, and the only one in Asia
One of the largest MICE hotel in Bangkok (1),
total of 1,388 rooms
28 meeting rooms, including 1 grand
ballroom and 1 great hall
Walking distance from well-known shopping
area in Bangkok e.g. District Em
Notes:
RevPAR (THB/night)
Bangkok Marriott Marquis Queen’s Park ramping up with Revenue growth 13.9% FY2019 BU EBITDA growth at 26.1% YoY
+14.2% YoY +5.8% YoY
BU EBITDA (THB mm)
+26.1% YoY +23% YoY
735.6
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Ramping up to achieve FY2019 Revenue growth 1037%, strong FY2019 BU EBITDA growth +>225%
Contemporary urban malls offering compact “one-stop” shopping
with lifestyle experience emphasis
Cater to daily needs of local middle-income residents Closely located to key transportation network Anchor tenants include supermarkets / hypermarkets, cinemas,
fitness centers etc.
Contemporary urban malls offering compact “one-stop” shopping
with lifestyle experience emphasis
Cater to daily needs of local middle-income residents Closely located to key transportation network Anchor tenants include supermarkets / hypermarkets, cinemas,
fitness centers etc.
Notes:
Key Metrics (FY2019) Total NLA (sq. m) 36,526 Occupancy Rate (%) 71 BU EBITDA Growth (%YoY) +>225%
18.2 52.6 18.5 4Q18 4Q19 FY2018 FY2019
BU Revenue (THB mm)
+> 225% YoY +> 188.9% YoY
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Ramping up in less than 1 year to achieved strong FY2019 BU Revenue growth +>175% Ramping up in less than 1 year to achieved strong FY2019 BU Revenue growth +>175% and FY2019 BU EBITDA growth +9245%
an open-air suburban, family-friendly community retail
Targeting students, working adults and residents ,
Lasalle’s Avenue features retail shops like Uniqlo, Starbucks, Villa Market.
Easily accessible as it is located near to the Bangna BTS
Skytrain station, the Bearing BTS Skytrain station and the Samrong BTS Skytrain station.
an open-air suburban, family-friendly community retail
Targeting students, working adults and residents ,
Lasalle’s Avenue features retail shops like Uniqlo, Starbucks, Villa Market.
Easily accessible as it is located near to the Bangna BTS
Skytrain station, the Bearing BTS Skytrain station and the Samrong BTS Skytrain station.
Notes:
Key Metrics (FY2019) Total NLA (sq. m) 5832 Occupancy Rate (%) 87 BU EBITDA Growth (%YoY) +>9245%
12.2 13.1 18.9 52.0 4Q18 4Q19 FY2018 FY2019
BU Revenue (THB mm)
+>175% YoY 6.9% YoY
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Revenue Growth of 3.4% New Project and Ramp up with strong growth ; MQP (13.9%)
3.4% 51% Performing with EBITDA Margin at 51%
EFFICIENCY
1929 1615 6877 6565 4 Q20 1 8 4 Q2 01 9 F Y 2 01 8 F Y 2 01 9
OPRATING EXPENSE
16% 5%
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Exit Strategy
Sold out according to Investment
port adjustment plan in order to emphasize target return.
Improve the company overall
return of significantly
Sold out according to Investment
port adjustment plan in order to emphasize target return.
Improve the company overall
return of significantly
Below our EBITDA YIELD
criteria (4%)
Below our EBITDA YIELD
criteria (4%)
Portfolio Diversification Strategy
60% 40%
Revenue
Hospitality Retail and Commercial
CW Tower Panitip Plaza Bang Kapi CH Hotel Tantawan Hotel, Surawongse CW Tower Panitip Plaza Bang Kapi CH Hotel Tantawan Hotel, Surawongse
Diversified Portfolio of Prime Iconic Assets. Risk Management through market movement Leveraging expertise to develop each property with a clear value proposition
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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
AWC 1st Trading Day Marriott International Signing Ceremony Adrian Smith + Gordon Gill Signing Ceremony
Result Key Milestone
Entity Transformation (IPO Process) for governance and control Completed the listing process and became a listed company. Foundation for growth through ROFR structure Multi-agreement signing for the development of 3 hotels with 1,298 keys Leverage on customer network and importing practice Access to strong global brand and global network Transcending the cityscape
world's most iconic skylines Developing project and pioneer in new business concept in surpass expectation Creating a new market benchmark
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IHG Signing Ceremony Melia Koh Samui, Thailand Opening Acquisition of Asset Group 3
Result Key Milestone
Framework agreement signing for more than 1,200 rooms development Leverage on customer network and importing practice Access to strong global brand and global network Strategic business expansion with the first Melia Hotel in Thailand Growth Driver in developing of existing property. Repositioning and converting properties Scalable Frontier Projects and strong growth driver Development pipeline with ability to acquire land parcels from TCC Group’s land bank Delivering projects focus with growth drive and outstanding return
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Notes The RevPAR index is using compset data is based on the asset benchmarking exercise conducted by JLL. The compset or “test set” defined in the hotel management agreement between AWC and Luxury Hotel and Resort (Thailand) Co., Ltd. for Bangkok Marriott Marquis Queen’s Park has yet to be finalized.
80% 114% 94% 105% 113% 128% 117% 99% 160% 72% 106% 134% 129% 134% 0% 25% 50% 75% 100% 125% 150% 175%
Bangkok Marriott Marquis Queen's Park The Okura Prestige Bangkok Hotel The Athenee Hotel, A luxury Collection Hotel, Bangkok Hilton Sukhumvit Bangkok Double Tree by Hilton Sukhumvit Bangkok Le Meridien Bangkok Banyan Tree Samui Vana Belle, A Luxury Collection Resort, Koh Samui Le Meridien Chiang Mai Sheraton Samui Resort Holiday Inn Express Bangkok Sathorn Bangkok Marriott Hotel The Surawongse Phuket Marriott Resort & Spa, Naiyang Beach Hua Hin Marriott Resort & Spa
RevPAR Index (FY2019)
MICE and F&B Destination Hotel (Avg): 96% Bangkok City Hotels (Avg): 115% Luxury Resorts (Avg): 108% Other Non-Bangkok Hotel (Avg): 116% Asset Group 3 Operating Properties in Bangkok (Avg): 120% Asset Group 3 Operating Properties Outside Bangkok (Avg): 132% Average: 114%
Average RevPAR index is 113% which is an indication that AWC’s hotel assets are performing above its peers
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PRESTIGIOUS INDUSTRY AWARDS & CERTIFICATES
INTERNATIONAL HOTEL/ PROPERTY AWARDS 2019-2020 FINANCEASIA COUNTRY DEAL AWARDS 2019 THAILAND’S DEAL OF THE YEAR
KEY HIGHLIGHT:
HOTEL OF THE YEAR 2019 TTG TRAVEL AWARDS 2019 MARKETEER NO.1 BRAND THAILAND 2019 MICHELIN GUIDE THAILAND 2020 1 MICHELIN STAR RESTAURANT
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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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GROWTH-LED STRATEGY
MIDDLE TO HIGH INCOME CUSTOMER SEGMENT
GLOBAL AND UNIQUE PARTNER
NEW BENCHMARK SYNERGY & SUSTAINABILITY
CULTURE AND CORE VALUE PROCESS & DIGITAL TRANSFORMATION CUSTOMER CENTRICITY THROUGH LIVING CREATION SUSTAINABILITY Support Growth
Business Transformation
Support Fundamentals
Corporate Transformation
PERFORMANCE BASED ORGANIZATION
Governance Structure
PHILOSOPHY PEOPLE PROCESS PRODUCT PUBLIC
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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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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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Hospitality Office Retail
Scale Quality Attractive Dynamics
Hotel Owner(1)
Iconic Assets
International Operators
Prime CBD / Luxury Resorts
Prime Central
Transport Nodes
Lifestyle Offerings
Differentiated / Unique
1st to Market Concepts
Barbell Strategy
(16 Hotels, 4,869 keys (2))
Office Owner(3)
(4 Offices, 270,594 sqm NLA)
Total Tourism Receipts
(THB Trn)
0.7
3.1
2008 2018
4.4x
632
897
2012 2018
1.4x
2.5
3.3
2012 2017
1.3x
Prime Grade Rent
(THB / sqm / month)
Retail Sales
(THB Trn)
Continuous Growth Opportunities With the GOR Arrangement
One of the Largest Thai Conglomerates
High Quality Pipeline Assets in Thailand
(8 Retails, 165,628 sqm NLA)
Synergies with TCC Network and Ecosystem
Notes: 1. JLL’s Independent Market Report, for midscale and above segmented hotels 2. Includes 4 operating assets from asset group 3 acquisition, The Metropole Hotel Phuket, and Melia Koh Samui, Thailand 3. JLL’s Independent Market Report
As of Feb 2020
Source: JLL Report
Specialty Center(3)
The Flagship Freehold Hospitality and Commercial Platform to Access the Attractive Thai Market
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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
Iconic Assets
International Operators
Prime CBD / Luxury Resorts
Prime Central
Transport Nodes
Lifestyle Offerings
Differentiated / Unique
1st to Market Concepts
Barbell Strategy
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Largest Hotel Owner in Thailand(1)
(By rooms, Midscale and higher)
Operating HOTELS (2)
16
ROOMS
4,869
Renovation / Development HOTELS (3)
11
ROOMS
3,637
Global Operators (% by Operating Room Count)
Differentiated Retail Platform
Operating OFFICES
4
SQM NLA
270,594
Operating RETAIL ASSETS (5)
9
SQM NLA
198,781
Development RETAIL ASSETS (6)
1
SQM NLA
71,700
WHOLESALE ASSET
1
SQM NLA
145,000
Largest Office Owner in Bangkok
(By NLA) (7)
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EXTENSIONS (6)
Notes:
asset under development is AEC Trade Center
Koh Samui (4 hotels) Phuket (2 hotels) Chiang Mai (3 hotels, 1 retail) Bangkok (12 hotels, 9 retail, 4 offices) Krabi (1 hotel) Hua Hin (2 hotels) Ayutthaya (1 wholesale) Pattaya (3 hotels)
Hotels Retail & Office
Includes 16 operating hotels; 11 hotels in pipeline; 9 operating retail properties; 1 retail property, 2 asset extensions and 1 wholesale property in pipeline; 4 offices (assuming acquisition of 12 properties have been completed post- IPO)
90% Freehold (1)
Assets across Thailand As at Feb 2020
76%(4) 9% 5% 4% 4% 2%
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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 Feb 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 Feb 2020
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Independent directors Non-independent directors
Sangsom Group of Companies, Vice Chairman of TCC Corporation and Berli Jucker
Khunying Wanna Sirivadhanabhakdi Vice Chairman of the Board
Energy, and Charoen Pokphand Foods
Independent Director
TMB Bank, and Independent Director of Siam Commercial Bank
Vice Chairman of the Board
Company
Independent Director
Director of several accounting committees
Independent Director
Management, TCC Hotel Asset Management, Siriwana, The Imperial Angkor Palace, and Residence Retail
Director
Industrial (Thailand), Univentures, and United Overseas Bank (Thailand)
Independent Director
Management, TCC Hotel Asset Management, TCC Land, The Imperial Angkor Palace, and Residence Retail
Director
Ministry of Finance
Independent Director
Golden Land Property Development, Univentures, and Siam Food Products, Serm Suk, Oishi Group, ThaiBev, Berli Jucker, F&N, and Frasers Property
Director
Chairman of TCC Corporation, Berli Jucker, F&N, and Frasers Property
Sirivadhanabhakdi Chairman of the Board
Jucker, Oishi Group, and Siam Food Products
Independent Director
Eastern Polymer, Independent Director of Hydroquip, Thai Airways, and M Pictures Entertainment
Independent Director
Supercenter, Bangkok Dusit Medical Services, Siam Commercial Bank, Frasers Property, and Berli Jucker
Director Previous Permanent Secretaries
Key committees comprise majority independents
50% independent board
Board comprises previous 3 permanent secretaries (from Ministries of Finance, Commerce and Tourism & Sports)
ROFR will be approved by Independent Directors
Board members have solid experience Independent directors have various experience
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Experienced, highly qualified and dedicated senior management team, with an average of over 20 years of experience in the real estate industry
Has 30 years of experience in the real estate industry Received a Bachelor of Hotel Management from Provincial Institute for the Food Industry and Tourism, Belgium, and Higher Education (Business Management) from Institut Européen d’Administration des Affaires, Paris, France
Chief Hospitality Group Officer
Has 20 years of experience in the real estate industry and has been with TCC Group for more than 10 years Received Diploma in Business Management from Temasek Polytechnic in Singapore, and Bachelor Degree in Commerce (Tourism Management) from Curtin University of Technology in Australia.
Chief Retail and Commercial Group Officer
Has 10 years of experience in the banking industry and 2 years of experience in the real estate sector Received a Bachelor of Business Administration (Finance) from Thammasat University, Thailand, a Master of Business Administration (Venture Capital Management), and a PhD in Theory of Economic Development from Waseda University, Japan
Prativedwannakij Chief Financial Officer
Has 22 years of experience in the banking, technology and supply chain management industry Received a Bachelor Degree in Mechanical Engineering from Chulalongkorn University, Master Degree in Industrial Engineering from Texas Tech University, and Ph.D in Operations Research and Industrial Engineering from the University of Texas at Austin, US
Rojanasoonthon Chief Corporate Officer
Traisorat Chief Executive Officer and President Acting Chief Investment Officer
Has 18 years of experience in the real estate industry and has been with TCC Group for over 20 years Received a Bachelor’s degree in Architecture with Distinction from Silpakorn University, Thailand, MSc in Regional and Urban Planning Studies from the London School of Economics and Political Science, London University, U.K., and a Master of Philosophy in Land Economy from the University of Cambridge, U.K Has 15 years of experience in the investment banking industry Received a Bachelor Degree in Engineering from Sirindhorn International Institute of Technology, Master Degree in Management Science and Engineering from Stanford University and Ph.D in Applied Economics and Management from Cornell University, US.
Wongsasutthikul Chief Investment Officer
Has 29 years of work experience, including 2 years of experience in the real estate industry Received a Bachelor of Political Science (International Relations) from Chulalongkorn University, Thailand, a Master of Business Administration from the University of the Thai Chamber of Commerce, Thailand and a Certificate in Diversity Management from the University of Houston, US
Wiwitwanit Chief People Officer Has more than 20 years of experience in Oil & Gas, Healthcare and Consumer industry Received a Bachelor of Arts in English from Thammasat University (First Honors), and Master of Arts in Education from University of Kansas, US
Pongpermpruek Chief Marketing and Branding Officer Has 23 years of experience (one year of experience in the Oil & Gas industry, seven years of experience in the Construction industry, and 14 years of experience in the real estate industry) and has been with TCC Group for 14 years Received Bachelor of Engineering in Mechanical Engineering (Aeronautics) from University of Technology, Malaysia, and a Master of Business Administration from Assumption University, Thailand
Chin Chief Project Development Officer
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Well Diversified, High Quality and Balanced Portfolio Well Diversified, High Quality and Balanced Portfolio
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Benefits from Economies of Scale Benefits from Economies of Scale
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Highly Differentiated Hospitality Business Supported by Strong Partnership with Best-in-Class Operators and Global Brands Highly Differentiated Hospitality Business Supported by Strong Partnership with Best-in-Class Operators and Global Brands
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Ecosystem of TCC Group Ecosystem of TCC Group
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Extensive Lending Relationships with Proven Access to Funding Extensive Lending Relationships with Proven Access to Funding
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Strong Governance with Experienced Board of Directors with Track Record of Success Strong Governance with Experienced Board of Directors with Track Record of Success
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High Performing Hotel Assets compared to Peers High Performing Hotel Assets compared to Peers
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Optimize Cost Efficiency through Integrated Development Platform Optimize Cost Efficiency through Integrated Development Platform
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Experienced Management Team with Track Record of Success Experienced Management Team with Track Record of Success
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Well-positioned to Benefit from Long-term Capital Trends Well-positioned to Benefit from Long-term Capital Trends
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GLOSSARY TERMS GLOSSARY DEFINITION
Earnings before Interest, Tax, Depreciation and Amortization (EBITDA) refers to our profit (loss) after tax for the period less interest income, and plus finance cost, tax expense (benefit), depreciation and amortization (as derived from the financial information presented in our Consolidated Financial Statements).
EBITDA
is calculated by EBITDA divided by revenue
EBITDA MARGIN
NET OPERATING PROFIT
Net Operating Profit is also called Business EBITDA before Corporate expenses, that is calculated with reference to total revenue (excluding interest income and other income) minus total expenses (excluding finance cost) according to Consolidated Financial Statement.
NET OPERATING PROFIT MARGIN
margin is calculated as Net Operating Profit divided by revenue
OPERATING ASSETS OF THE COMPANY
The Operation Assets of the Company means the operating properties that excluded CW Tower, Pantip Plaza Bangkapi, CH hotel and The Tantawan Hotel Surawongse. The mentioned properties were sold off according to the investment adjustment plan to emphasize on the targeted return on
House Beach Resort, which was under renovation program to improve its facilities in the middle of the year 2018, management fees and interest income is calculated from Net Operating Profit divided by Operating Assets
NET OPERATING PROFIT YIELD
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