Corporate Presentation Opportunity Day September 2019 Disclaimer - - PowerPoint PPT Presentation

Corporate Presentation

September 2019

Opportunity Day

The information (“Confidential Information”) contained in this presentation is strictly confidential and is provided by Noble Development Public Company Limited (the “Company”) to you solely for your reference. Such information is subject to change without notice, its accuracy is not guaranteed and it may not contain all material information regarding 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. By using this presentation, you are agreeing to be bound by the below. The information in this presentation has not been independently verified. No representation, warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information and opinions in this presentation. It is not the intention to provide, and you may not rely on these materials as providing a complete or comprehensive analysis of the Company or trading position or prospects. The information and opinions contained in these materials are provided as at the date

• f this presentation and are subject to change without notice. Nothing contained herein or therein is, or shall be relied upon as, a promise or representation, whether as to the past or the

future and no reliance, in whole or in part, should be placed on the fairness, accuracy, completeness or correctness of the information contained herein. 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. No assurance can be given that future events will occur, that projections will be achieved, or that the Company's assumptions are correct. The actual results, financial condition, performance or achievements of the Company may differ materially from those forecasted and

• projected. All forward-looking statement are subject to change and should not be relied upon.

Disclaimer

2

Total of 48

Residential Projects

90,000

worth more than

THB mm

19active projects

Inventories worth more than

34,000

THB mm

As of September 2019, total of

3

Agenda

• 1. New Noble - at a glance
• 2. Corporate Strategy
• 3. Operation Performance
• 4. Financial Performance
• 5. Forward-Looking
• 6. Appendix

4

The Company has set out ambitious 3-year targets to elevate Noble Development into a best-in-class developer.

Three-Year Goal

Pre re-20 2019 19 3-Year ear Tar Target et Annua ual l Reven enue ue (THB in Billion

• ns)

s) Numbe ber r of Proje jects ts per r Annum um Prof

• fit

t Margin rgin (%)

• Excl.
• l. lan

and dives estmen tment Return turn on Equity y (%) Intere terest st Bea earing ing Debt bt-to to-Equi quity ⍨5 2 20% 20% 15% 15% 1.8x 10 10 – 12 12 4 4 - 5 17% - 18% 18% 28% - 32% 32% 1.5x – 1.8x

5

Shareholding Structure

The main shareholders of the Company will provide the stability and foundation on which the Company can build upon to attain its aspirations.

nCrowne ne Pte.Ltd. d. (whol holly ly owne ned d by

• Mr. Frank

nk Leung ng)

23.4%

• Mr. Thong
• ngcha

chai Busr srapa pan 23.3% BTS Grou

• up

p Holdings ngs PCL 9.9% Othe her Public lic Invest vestor

• rs

s 43.4% Noble le Develo velopme pment nt PCL

Remark: Figures as of 9 August 2019

6

• Mr. Thongchai Busrapan
• Mr. Thon
• ngc

gchai hai Busr srapa pan Chair airman man / Co -Chief ief Exec ecutiv utive e Offic ficer r Acting ting Chief ief Corporat

• rporate Suppor

port t Offic ficer

Mr.Thongchai was the Vice Chairman and Board Member of Noble Development from 1991 – 2012.

• Mr. Busrapan was the Chief Executive Officer and also
• ne of the founders of Proud Residences Co., Ltd. from

2013 to 2017. He was responsible for the execution of the strategic vision of the company, as well as the company’s day-to-day operations. During his tenure, he launched the project, Park 24, with total sales value of THB 17.5 billion. Prior to joining Proud Residences Co.,. Ltd., Mr. Busrapan was the President and Executive Director of Noble Development Public Company Limited which is a listed real estate developer on the Stock Exchange of Thailand (Ticker: NOBLE.BK). He was responsible for the overall daily operations and the launch of the project, Noble Ploenchit, with total sales value exceeding THB 18 billion.

7

Fulcrum Global, wholly owned by Mr. Frank Leung, seeks to leverage its distribution network and knowledge of the overseas network to support Noble’s foreign sales – in 2018, Fulcrum achieved over 7BB sales of Thai properties.

• Fulcrum Global through nCrowne Pte. Ltd. has acquired a 24.9%

stake in Noble Development and have become a major shareholder and strategic partner of Noble Development since Sep 28, 2018.

• Fulcrum Global is a real estate investment fund with investments

in Thailand, UK and Japan. The Company manages over 400 distributors across 9 countries in Asia to sell its projects, and is

• ne of the top 3 distributors of Thai property by sales value.
• In 2018, Fulcrum achieved sales value of over THB 7BB of

Thailand real estate projects across its distribution network.

• The partnership with Fulcrum Global will create synergies for

Noble to leverage Fulcrum’s extensive distribution know-how to tap the large and growing overseas market.

Fulcrum Global

8

BTS Group Holdings PCL

BTS Group Holdings (BTSG) PCL, whose core business engages in mass transit, media, property and services has acquired 9.9% strategic stake in Noble Development since April 2019.

BTS Group aims to provide a sustainable and leading set of “City Solutions” to urban communities across Asia, supporting critical across four business areas: Mass Transit, Media, Property and Services.

BTS Group is the majority owner of U City, which is the designated property development and investment vehicle of BTSG, the company is a strategic vehicle to derive synergies from the “mass transit premium” of the BTSG

9

• Mr. Frank Leung

Vice Chairman / Co – Chief Executive Officer

• Mr. Thongchai Busrapan

Chairman / Co – Chief Executive Officer

• Mr. Theeraphon Voranithiphong

Chief Business Development Officer 1

• Mr. Arat Sawatatat

Chief Business Development Officer 3

• Mr. Sira Udol

Chief Business Development Officer 2

• Mr. Arttavit Chalermsaphayakorn

Chief Financial Officer

Noble’s Senior Managements have decades of experience both within Noble and in the Thailand real estate sector.

Management Team

10

Agenda

• 1. New Noble - at a glance
• 2. Corporate Strategy
• 3. Operation Performance
• 4. Financial Performance
• 5. Forward-Looking
• 6. Appendix

11

The Company has focused on five initiatives to improve shareholders in the short, medium and long term.

Key Strategy Steps

Initiativ tiative

3

Initiativ tiative Expand overseas network whereby foreign buyers should account for 30% - 40% of sales revenue Realignment of product mix Proactive in strategic collaboration with suitable strategic partner Develop international property investment platform to leverage Noble’s brand as well as mitigate risks through diversification

2

Initiativ tiative

4

Initiativ tiative

5

Initiativ tiative

1

Sales of completed inventory, monetisation of commercial property and non-core land plots

12

The Company has so far achieved significant progress in each respective initiative, setting the stage for an outstanding 2019 and beyond.

Milestones Achieved

Up to 1H 2019, managed to monetize the completed inventories, commercial properties and non-core land plots up to THB 5, 265 mm

Launch of NUE brand (Price point < THB 5 mm) as part of new product mix Market leader in overseas sale with over THB 2,169 mm in booking, equivalent to 56 % of total Pre-Sale In final discussion with Pan Asian Developer to jointly develop high-end project with GAV more than THB 12 bn Bookings continued to improve Y-o-Y with two upcoming project transfers within 4Q2019 worth

• c. THB 1,900 mm

1 12 3 4 5

13

Divest Commercial Properties

Noble Ora Commercial Size: 959 sqm Appraised Value: 76 MB Status: Vacant, available for lease Noble Solo Commercial-On Process Size: 1,423 sqm Appraised Value: 167 MB Status: Leased out Noble Remix Commercial Size: 6,726 sqm Appraised Value: 702 MB Status: Showroom Noble Ploenchit Tower D - SOLD Size: 4,446 sqm Appraised Value: 900 MB Status: Noble HQ

The Company has accumulated commercial properties and land plots in its portfolio – divestment of such asset will create cash for higher return investments.

The Company has entered into a sale and lease back transaction for Noble PloenchitTower D, which will free up cashflow for redeployment. 1

14

Inventory Concentration

Nearly 70% Company’s inventory is between the 5 MB – 15 MB range, limiting the addressable market for the Company.

1% 9% 8% 16% 22% 18% 17% 6% 4% 0% 5% 10% 15% 20% 25% <2MB 2MB - 3MB 3MB - 5MB 5MB - 7MB 7MB - 9MB 9MB - 11MB 11MB - 15MB 15MB - 20MB 20MB - 35MB

% of Total Inventory

Po Pote tential ntial Opport portunity unity

2

Inventory Distribution (As % of Inventory Value across Price Brackets)

15

Remark: Inventory as of 2Q2019

Developing Brand Pyramid

We plan to develop three separate brands to broaden the Company’s appeal beyond Noble’s traditional customer set.

2

High gh End Mass ss Market rket

• Traditional “Noble” brand to

continu inue to address ss the mid-to to- high h end segment nt

• Develo

lop JV with interna rnatio ional nal develo lopers rs to target custome

• mers

rs with diffe ferent nt value proposition sition

• ”Nue” brand to develop into Greater Bangkok

alongside gside rail l infrast structure re expansio ion

• Establi

lish sh JVs s to get access to strategic gic land plots

16

Expansion Along Rail Network

Noble seeks to expand its portfolio of projects from Central Bangkok to take advantage of transportation infrastructure expansion. 2

The BTS Sukhumvit Line The Sukhumvit Line begins at Samrong Station and ends at Mo Chit Station. The BTS Silom Line Begins at Bang Wa Station and ends at National Stadium Station. The Future Yellow Line Monorail Begins at Samrong Station and ends at Lat Phrao Station. The Future Pink Line Monorail Begins at Khae Rai Station and ends at Min Buri Station. The Future Orange Line Monorail Begins at Bang Khun Non Station and ends at Yaek Suwinthawong Station The Future Grey Line Monorail Begins at Watcharaphol Station and ends at Thong Lor Station.

17

The total bookings from overseas sales in 1H2019 is THB 2,169 mm, roughly 89% of the total overseas booking in 2018. Overseas Sales (2015 – 1H 2019)

Unit THB mm

500 1,000 1,500 2,000 2,500 3,000 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 2018 1H2019

2,169 2015 2016 2017 2018

Overseas Sales

2,436

3

18

2,436 2,169 1,000 1,200 1,400 1,600 1,800 2,000 2,200 2,400 2018 1H2019 8% 38% 0% 5% 10% 15% 20% 25% 30% 35% 40% 2018 2Q2019

We achieved in 1H2019, 89% of the total annual overseas bookings in 2018, and established Noble’s position as market share leader for Bangkok condominium.

89% 89% Remark: Net overseas bookings, and exclusive of agency undertaking arrangements.

Noble in the Overseas Market

Unit: THB mm

Overseas Sales (1H2019 VS 2018) Noble Market Share in Overseas Market for Bangkok Condo (2Q2019 VS 2018)

3

19

Agenda

• 1. New Noble - at a glance
• 2. Corporate Strategy
• 3. Operation Performance
• 4. Financial Performance
• 5. Forward-Looking
• 6. Appendix

20

7,464 2,436 9,900 12,923 9,677 2017 5,078 2018 17,989 2,529 1,442 3,971 1,683 1,676 2,169 5,528 17,850 4,480 1H2019

Pre-Sales Performance and Target

Pre-Sales Performance Backlog Recognition 2019-2022 THB 17,989 mm

Unit: THB mm

Backlog Revenue Pre-Sales OVS Local Extra

29% 38% 12% 21%

2019 2020 2021 2022

21

81% 79% 88% 91% 2% 3% 4% 1% 94% 73% 64% 73% 87% 89% 66% 22% 20% 17% 18% 8% 8% 6% 27% 36% 27% 13% 11% 34% 78% 80%

2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 18,000 20,000

Ploenchit Revolve Ratchada Revolve Ratchada II Revo Silom Recole BE33 BE19 Around 33 Ambience 42 Nue Chaengwattana Around Ari State 39 Nue Srinakarin

Inventory Backlog Sold

Backlogs

Completed Inventory Pipeline Project New Project*

Pre-sale of pipeline projects as of 1H2019 has created strong backlogs for revenues realization. The new projects have been offered to the international market and will be launched officially in 3Q2019.

Remark: * Pre-Sales figures of new projects as of 31 August 2019

22

Noble Ploenchit Total Units: 1,385 Project Value: THB 17,891 mm Remaining Units: 223 Remaining Project Value: THB 3,109 mm Noble Revo Silom Total Units: 319 Project Value: THB 1,796 mm Remaining Units: 20 Remaining Project Value: THB 140 mm Noble Revolve Ratchada Total Units: 762 Project Value: THB 2,922 mm Remaining Units: 80 Remaining Project Value: THB 538 mm Noble Revolve Ratchada 2 Total Units: 751 Project Value: THB 3,276 mm Remaining Units: 51 Remaining Project Value: THB 270 mm Noble Geo Rama 5 Total Units: 141 Project Value: THB 954 mm Remaining Units: 11 Remaining Project Value: THB 76 mm Noble Gable Total Units: 153 Project Value: THB 1,050 mm Remaining Units: 77 Remaining Project Value: THB 617 mm

Inventories as of 30 June 2019

23

Pipeline Projects

Noble Recole Total Units: 288 Project Value: THB 2,483 mm Sale Progress: 94% Construction Progress: 90% Expected Transfer: 4Q2019

24

Noble BE 33 Total Units: 279 Project Value: THB 2,930 mm Sale Progress: 73% Construction Progress: 80% Expected Transfer: 4Q2019

Pipeline Projects

25

Pipeline Projects

Noble Ambience Sukhumvit 42 Total Units: 259 Project Value: THB 1,669 mm Sale Progress: 87% Construction Progress: 58% Expected Transfer: 4Q2020 Noble Around Sukhumvit 33 Total Units: 274 Project Value: THB 2,538 mm Sale Progress: 73% Construction Progress: 55% Expected Transfer: 4Q2020 Noble Around Ari Total Units: 611 Project Value: THB 4,585 mm Sale Progress: 66% Construction Progress: 46% Expected Transfer: 4Q2023 Nue Noble Change Wattana Total Units: 813 Project Value: THB 2,374 mm Sale Progress: 89% Construction Progress: 40% Expected Transfer: 1Q2021 Noble BE19 Total Units: 586 Project Value: THB 5,558 mm Sale Progress: 64% Construction Progress: 66% Expected Transfer: 3Q2020

26

New Projects

Launch Timing Location Project Size Development Type Estimated Transfer Q3 Soi Sukhumvit 39 THB 3,700 mm New Build 3Q2022 Nue Noble Srinakarin- Lasalle Q3 La Salle Srinakarin THB 2,500 mm New Build 3Q2022 Noble Ruamrudee Q3 Soi Ruamrudee 2 THB 1,000 mm Refurbishment 1Q2020 Wireless Road Wireless Road THB 12,000 mm New Build 4Q2023 Q4 State 39

27

Agenda

• 1. New Noble - at a glance
• 2. Corporate Strategy
• 3. Operation Performance
• 4. Financial Performance
• 5. Forward-Looking
• 6. Appendix

28

Total Revenue and Net Profit Highlight

702 826 2Q2018 2Q2019 1,741 4,518 1H2018 1H2019

Reven evenue ue Gross

• ss Profit
• fit

Net t Profit

• fit

320 276 2Q2018 2Q2019

Unit: THB mm Unit: THB mm Unit: THB mm

17.7% YoY 159.5% YoY 698 2,365 1H2018 1H2019 69 165 2Q2018 2Q2019 200 1,474 1H2018 1H2019

% Gr Gros

• ss

s Prof

• fit

it Marg rgin in Gross

• ss Margins

rgins (1H 1H19) 9)

Gross Margin Land & Commercial property

Residential Sales 80.1% 52.9% Average 36.6% 48.9% 34.4% 2Q2018 2Q2019 42.4% 52.9% 1H2018 1H2019

% Ne Net t Prof

• fit

it Marg rgin in

9.9% 19.9% 2Q2018 2Q2019 11.5% 32.6% 1H2018 1H2019 13.8 % YoY 238.8% YoY

Note: 1H2019 net profit included gain from sale of commercial property amounting to THB 230 mm

139% YoY 637% YoY

29

Profitability Analysis

Gross

• ss Profit
• fit Margin

rgin Comparis mparison

• n

52.9% 33.6% 37.6% 33.0% 33.0% 27.9% 27.1% 43.7% 35.8% 34.1% 31.1% 33.8% 29.2% 30.0%

0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% NOBLE LPN PF SC AP SIRI ANAN 2018 1H2019

Normalized gross profit margin for the 1H2019 is 36.6%- Gross margin for condominium sales reduced slightly in exchange for higher sales velocity.

30

Normalized

36.6% Normalized

Financial Position

ASSETS

Unit: THB mm

RETURN ON INVESTMENT

1,147 3,302 18,038 1,075 1,350 24,911 2Q2019 18,638 6,273 24,911 2Q2019 Cash TL Real estate development cost Investment property Others Inventory Equity 1,564 5,160 15,583 1,330 2,316 25,953 2018 18,00 4 7,948 25,953 2018

Net IBD/E

1.83 1.95 1.78 1.47 2.00 1.93

• 0.50

1.00 1.50 2.00 2.50

1Q2018 2Q2018 3Q2018 4Q2018 1Q2019 2Q2019

Net IBD/E stands lower than covenant of 2.5

22.0% 16.3% 10.5% 12.4% 35.5% 37.0% 5.8% 4.5% 3.0% 3.8% 8.4% 9.3% 0.0% 10.0% 20.0% 30.0% 40.0%

1Q2018 2Q2018 3Q2018 4Q2018 1Q2019 2Q2019

RoE RoA 31

Debt Profile

Unit: THB mm

13,313 13 THB mm

Long-Term Loan 7,763 THB mm Long-Term Bonds 5,550 THB mm Fixed 41% Floating 59%

13,313 13 THB mm

Drawn Facility 7,763 THB mm

16,377 77 THB mm

Undrawn Facility 8,614 THB mm

Debt Break Down Credit Facility and Utilization

Weighted ted Aver erage Cost of Fund

32 4.6% 4.6% 4.6% 4.5% 4.5% 4.6%

1Q2018 2Q2018 3Q2018 4Q2018 1Q2019 2Q2019

2,550 1,500 1,500 2020 2021 2022

Unit: THB mm As of 30 June 2019

Bond Maturity Profile and Finance Cost

Finance ance Cost

• st

273 233 221 2016 2017 2018 87 162 1H2018 1H2019

Bonds Maturity Profile

Unit: THB mm Unit: THB mm 33

Capital expenditure

1,518 1,591 1,023 3,944 5,050 5,674 2,000 4,000 6,000 8,000 2019 2020 2021

The Company expects to spend roughly 6BB in CAPEX per – about 20% of which will be for the purpose of land acquisitions.

Net Debt : Equity Target 1.9x 1.5x 1.5x

Three-Year Capital Expenditure (2019 – 2021)

As % of 3-Year Revenue

78% 22% Construction Costs Land Acquisition

THB mm

5,462 6,641 6,697

34

2H2019 Priorities

Divestment of non-core assets and redeploy capital in high return Additional projects in the 80K – 120K range in more diversified and upcoming urbanization area. Best utilized owned oversea network to tap foreign buyers Inbound Outbound Embark on international investment

• pportunities e.g. UK

High Dividend yield Uplift Revenue and Earning profile Higher Total Shareholders’ Return

+ =

1 2 1 2

Continu ntinue e to Focus

• cus on Product
• duct Pyr

yram amid id Inbou

• und

nd & Outbou bound nd Oversea rseas Atta tachm chment nt Bala alance nce Between etween Growth th Stock

• ck and

Dividend idend Pl Plan an

35

Other Key Financial Activities

• In order to optimize land portfolio and free up the capital to invest in new product mix, the Company

has divested none-core land plots worth THB 1,988 mm as well as monetized office area amounting to THB 800 mm.

• On June, 19, Noble issued THB bonds at 4.5% for 3-year tenor amounting to THB 1,500 mm for

refinancing purpose.

• As of August 19, the Company has bond outstanding THB 5,550 mm.
• Total Project Financing Facilities: THB 16,337 mm, of which the undrawn facilities is approximately

THB 8,614 mm for flexible financial management.

• Most recent dividend payment was in March 2019 amounting to THB 3,150 mm equivalent to THB

6.90 per share based on historical performance over the past 6-7 years.

• With higher liquidity, it is expected the dividend payment will be carried on to reward to shareholders.

Historical Dividend Payment Asset Monetization Bond Issuance Financial Management

36

• THB 6.9 per share was paid on March 2019 on a result of accumulated retained earing from past performance in which dividend

payout was low .

• With higher liquidity as a result of asset optimization, it is expected that the dividend payout will be passed through shareholders.

Expected Strong Dividend Payout From Now On

37

0.30 0.30 0.10 0.0% 0.0% 0.17 6.90 2012 2013 2014 2015 2016 2017 2018

Dividend per share

2012 2013 2014 2015 2016 2017 2018 Dividend Payout Ratio 42.2% 42.4% 28.0%

• 3.8%

319.4%

38

THANK YOU

For r more re informat

• rmation,

ion, plea ease se contact ntact :

Investor Relations Noble Development Public Company Limited Noble Building, 1035 Ploenchit Rd., Lumpini, Pathumwan, Bangkok 10330, Thailand. ir@noblehome.com 0-2251-9955