FPT Corporate Day
Financial results presentation for FY2018/2019 12-month period ended 30 September 2019
3 December 2019
FPT Corporate Day Financial results presentation for FY2018/2019 - - PowerPoint PPT Presentation
FPT Corporate Day Financial results presentation for FY2018/2019 12-month period ended 30 September 2019 3 December 2019 Important Notice & Disclaimer Statements in this presentation constitute forward -looking statements, including
3 December 2019
Statements in this presentation constitute “forward-looking statements”, including forward-looking financial information. Such forward- looking statements and financial information involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Frasers Property (Thailand) Public Company Limited (“FPT”) and its subsidiaries or industry results, to be materially different from any future results, or FPT performance or achievements expressed or implied by such forward-looking statements and financial information. Such forward-looking statements and financial information are based on numerous assumptions regarding the present and future business strategies and the environment in which the FPT and its subsidiaries will operate in the future. Because these statements and financial information reflect FPT’s current views concerning future events, these statements and financial information necessarily involve risks, uncertainties and assumptions. Actual future performance could differ materially from these forward-looking statements and financial information as a result of these risks, uncertainties and assumptions and you are cautioned not to place undue reliance on these statements and financial information. FPT expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statement or financial information contained in this presentation to reflect any change in FPT’s expectations with regard thereto or any change in events, conditions or circumstances on which any such statement or information is based, subject to compliance with all applicable laws and regulations and/or the rules of the Stock Exchange of Thailand, the Securities and Exchange Commission and/or any other regulatory
This presentation includes market and industry data and forecast that have been obtained from internal survey, reports and studies, where appropriate, as well as market research, publicly available information and industry publications. Industry publications, surveys and forecasts generally state that the information they contain has been obtained from sources believed to be reliable, but there can be no assurance as to the accuracy or completeness of such included information. FPT has not independently verified any of the data from third party sources or ascertained the underlying economic assumptions relied upon therein. The information contained in this document is strictly confidential and is made available to the recipient on the condition that it will be held in complete confidence. Any reproduction or distribution of this document in whole or in part, or the disclosure of any of its Presentations, without prior expressed or written consent of the Company is prohibited. The information contained in this document has been compiled from sources believed to be reliable. The accuracy and completeness of such information, however, is not guaranteed nor warranted. Nothing in this presentation should be construed as financial, investment, business, legal or tax advice and you should consult your independent advisors. 2
2
Frasers Property Thailand – Corporate Day FY2018/2019
Chief Digital officer of Frasers Property Thailand
Frasers Property Thailand – Corporate Day FY2018/2019
3
Logistics Park Bangna, Chachoengsao Logistics Park Bangna, Chachoengsao
Karawang Banjarmasin Makassar
6
Factory
Warehouse Residential Commercial Hospitality Data center Co-working space RESIDENTIAL PROPERTY
Top 5 developer in Thailand
53 active projects THB 31 bn presale value
COMMERCIAL PROPERTY
Leading developer in Thailand
241,000 sq.m. NLA 5 offices buildings 1,614 keys of hotels THB 49.8 bn worth of REIT portfolio value*
as of 30 September 2019
*Note : Combination of total assets of FTREIT and GVREIT
1st hyperscale Data center in BKK 60,000 sq.m. of GFA under development ~17,000 sq.m. Thailand’s largest Co-working space
Frasers Property Thailand – Corporate Day FY2018/2019
INDUSTRIAL PROPERTY
#1 provider in Thailand
2.7 mn sq.m. AUM 82% occ rate AUM 135k sq.m. pre-committed BTS
OTHER INVESTMENTS
Lumphun Khon Kaen
Bangkok & Greater Bangkok and EEC
Rayong Chonburi Chachoengsao Phachinburi Ayutthaya Pathumthani Bangkok Chiang rai Nontaburi Samut- Prakan Samut- Sakhon Chiang mai
36% 36% 11% 4% 13%
Industrial Residential Commercial Others Investment in Asso&JV Long term loans
29% 28% 12% 8% 23% 16% 72% 7% 5%
Industrial Residential Commercial Other income
92,390
+ 12% YOY
Industrial Property Business Commercial Property Business3 Residential Property Business
1,110 1,491 1,526
9M 2017 FY 2018 FY 2019
2.3%
1,532 1,863 3,508
FY 2017 9M2018 FY 2019
88.3% 10.4% 43% 47% 5% 5%
5,270
+ 20 % YOY
21,545
+ 16% YOY
Revenue Composition EBIT Composition Total Assets Composition Total Liabilities Composition
+ 56% YOY
Revenue structure 1/2
(THB mn) (THB mn)
Frasers Property Thailand – Corporate Day FY2018/2019
7
8,069 14,053 15,515
9M 2017 FY 2018 FY 2019
1 Total revenue excl. other business and other income 2 Other business incl. management fee and golf course revenue and other income incl. investment income, gain from sales investment in subsidiary, one-off reversals and other income 3 Commercial property business revenue reflects revenue related to/from FYI center, Goldenland building, the Ascott sathorn, Mariott Mayfair and Modena by Frasers
Frasers Property Thailand – Corporate Day FY2018/2019
8
Roo
Solar panel / Sky light Ambien ent Floor Load 3.5T/m2 Clear Height 12m ASRS Floor Load 10T/m2 Clear Height 33.7m Col
Floor Load 3.5T/m2 Clear Height 12m Temperatu ture
C / -18° C / 4° C 25C Ambient
Automation/ Robotic Employee centered workplace
Land Acquisition Master planning Design Project Management Construction Asset Management Lease Management Property Management
In-house Expertise to deliver bespoke solutions to
Specialised building for Omnichannel Specialised building for F&B Cold Storage
Frasers Property Thailand – Corporate Day FY2018/2019
9
✓ Leveraging on GOLD’s capability in commercial and residential business
✓ Transfer asset to FTREIT was valued at THB 2,662 mn ✓ Transfer asset to 3rd parties was valued at THB 948 mn ✓ Successfully raised THB 3,269 million via PP, to solve free float issue to 17.75%
✓ The Country Award Winner 2019 Best Developers Thailand of Industrial/Warehouse Sector ✓ FIABRCI-Thai PRIX D’EXCELLENCE AWARDS 2019 ✓ BCI Asia Top 10 Developers Awards 2019 (5-year consecutive)
✓ Advancing strategic partnership
✓ 135k sq.m. Outperformed Build-to-suit target with key tenants across sector
Accelerated growth with value-creation strategy Completed VTO of GOLD & proceeding to delist Scaled up portfolio with customer-centric approach 2019 Best-in-class award winning property developers Assets capitalization and successful private placement Successfully rebranded
30k sq.m. Target launch in Q1/2020 70k sq.m. Target launch in Q3/2020 35k sq.m. Target launch in Q4/2020 66k sq.m. Target launch in Q4/2020 60k sq.m. GFA Target launch in Q1/2021 17,000 sq.m. NLA
Deepen industrial and logistics real estate capabilities Broaden multi segment expertise across business verticals
Frasers Property Thailand – Corporate Day FY2018/2019
10
JustCo Capital Tower, All Seasons Place, Bangkok
Frasers Property Thailand – Corporate Day FY2018/2019
12
3.36 years 87%
Portfolio Occupancy Rate WALE
74% 70%
Net Add YTD Sep-19
1.78 years Warehouse
Portfolio Occupancy Rate WALE Net Add YTD Mar-19
Properties Under Management
AUM
Sep-18 Sep-19 Portfolio Occupancy Rate WALE
77%
Net Add YTD Sep-19
3.52 years
Properties Under Management
AUM
Sep-18 Sep-19
190.0K sq.m. 83% FPT
Portfolio Occupancy Rate
79% 68% FTREIT
Portfolio Occupancy Rate Net Add YTD Mar-19
Properties
1.07mn sq.m.
AUM
Sep-18 Sep-19 Portfolio Occupancy Rate
79%
Net Add YTD Sep-19
Properties
1.68mn sq.m.
AUM
Sep-18 Sep-19
164.0K* sq.m.
* FTREIT net add is inclusive of properties acquired from FPT over the period. ** In the absence of property sales, organic net add YTD Sep-19 under FPT would be 180.1K sq.m. and under FTREIT of 55.6K sq.m.
77.4K** sq.m.
Net Add YTD Sep-19
46% 17% 9% 28% 86% 13% 32% 26% 22% 12% 10%
3 “Manufacturing &
Trade Logistics”
1 “Distribution Center”
Products
FPT Thailand’s largest provider of Ready-Built factory and warehouse nationwide
2 “City Logistics”
Northern BKK
Customer product 3PL Auto Electronic
Others
Central region
FMCG 3PL
Eastern region
Auto Others Electronic 3PL
Logistic/Warehouse Operator 30.7% Automotive 18.9% Electronics/ Computer 13.7% Consumer Products 7.0% Plastic Injection/Products 3.4% Others 26.4% Japan 35.1% Thailand 17.2% Germany 15.4% USA 5.3% Singapore 5.1%
Breakdown of Tenants
COUNTRY/ REGION INDUSTRY
Chinese Customer
Chinese enquiries to FPT materialized with higher proportion of Chinese take- ups in FPT portfolio tenant mix
3.95%*
(Sep-19)
*Up from 3.09% as of Sep-18
Frasers Property Thailand – Corporate Day FY2018/2019
13
New take-up 2019
Frasers Property Thailand – Corporate Day FY2018/2019
14
active projects
Townhouse Single / Semi detached house Total 30 Projects 23 Projects 53 Projects
Samut Sakorn Nonthaburi Samut Prakarn Bangkok
30 12,20,46 Chachoengsao, Sriracha Pattaya 15,36 3,6,34 10,14,21,35 16,33,38 7 27,44,45 17,22,47 28,41 23 4,29,42 5,13,19, 26,32 8 1 11,25 31 18 9
Suvarnabhumi International Airport Don Mueang International Airport
Ayutthaya Chiang rai, Chiang mai 39,43 2 40 24,37 48
48.Golden Town Rangsit-Klong 3
Frasers Property Thailand – Corporate Day FY2018/2019
15
19,420 31,939 30,786
OCT 16 - SEP 17 OCT 17 - SEP 18 OCT 18 - SEP 19
Residential Presale
(THB mn)
30,786 MB Presale in 12 months
(THB mn)
10,571 14,041 15,515
OCT 16 - SEP 17 OCT 17 - SEP 18 OCT 18 - SEP 19
Residential Revenue
(THB mn)
15,515 MB Revenue in 12 months
10.5% Y-o-Y
(THB mn)
Presale as of Fiscal Year Period Revenue as of Fiscal Year Period
♦
First two-day launch of new projects fully booked in several locations.
Golden Empire
Chiangrai
Outperformed target with THB 500 mn Presale value
during the launch period on 22-23 Jun 2019. Golden City Chaengwattana Muangthong
Sold out 100% (THB 650 mn Presale value)
during the launch period on 3-4 Aug 2019
Frasers Property Thailand – Corporate Day FY2018/2019
16 ♦
Rural market newly-launched projects also received a favorable feedback.
2 2 1 5 3 1 1 1 1 3 5,400 4,200 3,100 8,100
OCT - DEC 18 JAN - MAR 19 APR - JUN 19 JUL - SEP 19
Residential Project Launch Plan
(No. of projects)
20,700 MB Project value 20 Projects Launched in FY2019
12 10 3 4 3 2 1 4 23,000 20,700
FY2018 FY2019
Upcountry SDH TW TH
Total FY2019
Frasers Property Thailand – Corporate Day FY2018/2019
17
Gol Golden Land Buildin g
Samyan Mitr trtow town Gol Golden en Land Building Mayfair Marriott
Sath thor
W Bangkok
The e Ascott
thor
FYI Cen enter ter Mod
ena
Landmark commercial, hospitality and mixed use development in heart of CBD
Park Ven entu ture e Ecop
ex
*GOLD holds 20% of North Sathorn Hotel Co., Ltd. who operates W Bangkok Occ rate 53%
NLA : 46,977 sq.m. Value : ~ THB 9,000 mn Asking : THB 1,000/sq.m. Price Keys : Condo 516 Hotel 112
Occ rate 89%
NLA : 11,231 sq.m. Value : ~ THB 340 mn Asking : THB 600/sq.m. Price Keys : 164 Value : ~ THB 2,000 mn
Occ rate 100%
NLA : 27,478 sq.m. Asking : THB 1,500/sq.m. Price
Occ rate 99%
NLA : 72,735 sq.m. Value : ~ THB 4,500 mn Asking : THB 1,100/sq.m. Price Keys : 403 Value : ~ THB 5,800 mn Keys : 177 Value : ~ THB 2,300 mn
Occ rate 99%
NLA : 50,375 sq.m. Value : ~ THB 4,000 mn Asking : THB 900/sq.m. Price Keys : 239 Value : ~ THB 1,000 mn
Frasers Property Thailand – Corporate Day FY2018/2019
18
EVENT REVIEW
(Oct 2019) 1.INNOVATION THAILAND EXPO 2.FREE FIRE PRO-LEAUGE 3.ISUZU-DMAX INFINIT WORLD 4.MITRTOWN HAPPY HALLOWEEN 5.ONE PIECE 20th ANIMATION ANNIVERSARY 6.BLIND EXPERIENCE
Golden NEO,Chaengwattana-Muang Thong
Frasers Property Thailand – Corporate Day FY2018/2019
20
Click icon to add picture Click icon to add picture Click icon to add picture
NPM : EPS: 14.4% 14.4% in FY2018 THB 0.96 THB 0.48 in FY2018 ROE : 9.0% 5.5% in FY2018 Revenue : THB 21,545 mn Up 16% Y-o-Y Net profit : THB 3,484 mn* Up 18% Y-o-Y Net IBD/E : 1.63x 0.47x in FY2018
*Net profit attributable to owner of the company which reflects FPT’s two-month ownership in GOLD stood THB 1,791 mn
0.36 0.48 0.96 9MFY18 Normalized FY18 FY19 2,144 2,983 3,484 9MFY18 Normalized FY18 FY19 1,863 2,236 3,508 714 940 960 10,282 14,041 15,515 415 551 566 532 744 996 13,806 18,511 21,545 9MFY18 Normalized FY18 FY19
Industrial property business Residential property business
Revenue Structure
Commercial property business
Net Profit
+ 56%
Y-o-Y
EPS*
(THB mn) (THB mn) (THB)
Other income Hospitality business
+ 16%
Y-o-Y
+ 62%
Y-o-Y
+ 18%
Y-o-Y
+ 167%
Y-o-Y
Frasers Property Thailand – Corporate Day FY2018/2019
21
+ 100%
Y-o-Y
*Calculated by dividing profit attributable to owners of the company over number of paid-up shares **Normalized for the 12-month period starting 1 Oct 17 to 30 Sep 18
**
13.5% 12.1% 16.3% 5.2% 5.1% 4.5% 74.5% 75.8% 72.0% 3.0% 3.0% 2.6% 3.8% 4.0% 4.6%
9MFY18 Normalized FY18 FY19
** **
27,115 50,028 14,138 14,492 41,397 27,870 82,650 92,390
43101 43466 IBD Non-IBD Shareholder's Equity Total assets
Debt maturity profile
(THB bn)
7,475 4,504 9M18 (Sep-18) FY2019 (Sep-19)
Balance Sheet Composition Cash & Current Investments
(THB mn)
Gearing Ratio
(THB mn)
30-Sep-18 30-Sep-19
Frasers Property Thailand – Corporate Day FY2018/2019
22
Ample cash and short-term investments for business operation
2020 2021 2022 2023 2024
Reoptimizing debt maturity profile, taking advantage of low interest rate environment De-leveraging initiatives via sales of assets to REIT together with future profit contribution Enlarging asset from investment in associates and residential project under construction 0.47 1.63 9M18 (Sep-18) FY2019 (Sep-19) Net IBD/ E*
*Calculated by dividing loans, borrowings and liability under financial lease after cash, cash equivalents and current investment over total shareholders’ equity
1.6 12.7 13.1 5.9 14.3
Profit & Loss statement (THB mn) FY2019 (Oct 18- Sep 19) Normalized FY2018 (Oct 18
% FY2018 (Jan- Sep 19) % Remark Total revenue 21,545 18,511 16% 13,806 56% Rental and related service revenue 2,702 2,478 9% 1,913 41% • Net increase in leased area of industrial property
Revenue from hotel business 566 551 3% 415
36%
rate Revenue from sales of real estate 15,515 14,041 10% 10,282 51%
projects Management fee income 541 463 17% 334 62%
Gain on sales of properties 1,710 638 168% 610 180% • Gain from sales of assets to FTREIT, JV-MF, 3rd party Share of profits of associates and joint ventures 238 373
250
JVs currently at initial stage of investment Finance cost 807 608 33% 465 73%
Profit for the year* 3,484 2,983 18% 2,144
62% Net profit margin** 14.4% 14.4%
11 pp Earnings per share 0.96 0.48 0.48 0.36 0.60
Frasers Property Thailand – Corporate Day FY2018/2019
23
*Net profit attributable to owner of the company which reflects FPT’s two-month ownership in GOLD stood THB 1,791 mn **Calculated by profit attributable to owner of the company and former shareholder before business restructuring over total revenue
Data Center Logistics Park Bangna, Chachoengsao Samyan Mitrtown, Bangkok
Warehouse and logistics has emerged key growth area for investment
Frasers Property Thailand – Corporate Day FY2018/2019
25
Electronics Auto, Textile, Agriculture Auto, Electronics Food, Petrochem & Logistics Rubber, Tourism
Thailand Infrastructure development will play a key role in future industrial development Industry highlight
East-West Economic Corridor North-South Economic Corridor Southern Economic Corridor
China Laos Myanmar Thailand Cambodia Vietnam Source: ASEAN information center, Government Public Relation Department
Industrial and logistics sectors have recovered from a multi-year downturn, with rebounding demand driven by EEC & US-China trade war while developers continue acquiring prime sites despite economic slowdown.
77% 76% 76% 77% 80%
0.0 2.0 4.0 6.0
2014 2015 2016 2017 2018
(million sqm)
Total supply Total take-up Occ rate Chonburi 31% Samutprakarn 21% Rayong 17% Ayutthaya 15% Saraburi 6% Pathumthani 6% Prachinburi 3% Chachoengsao 1% 240 170 180 180 140 200 123 200 250 185 190 230 200 220 230 250 Chachoengsao Prachinburi Pathumthani Saraburi Ayutthaya Rayong Samutprakarn Chonburi
81% 79% 81% 82% 85%
0.0 2.0 4.0 6.0 8.0
2014 2015 2016 2017 2018
(million sqm)
Total supply Total take-up Samutprakarn 33% Chonburi 25% Ayutthaya 13% Chachoengsao 9% Bangkok 7% Rayong 4% Khon Kaen 3% Pathumthani 2%Lamphun 2% Saraburi 1% Samut Sakhon 1% 120 100 120 140 100 150 120 100 120 120 110 155 160 125 180 110 180 180 180 155 200 190 Samut Sakhon Saraburi Lamphun Pathumthani Khon Kaen Rayong Bangkok Chachoengsao Ayutthaya Chonburi Samutprakarn
Thailand Ready Built Factory (RBF) Supply, demand and occupancy rate 2014-2018 Thailand Warehouse Supply, demand and occupancy rate 2014-2018 Warehouse supply in key provinces RBF supply in key provinces RBF rental rate by location Warehouse rental rate by location
* Source : Knight Frank Market Study, September 2019 (data as of 2018)
Frasers Property Thailand – Corporate Day FY2018/2019
26
▪ Robust demand for logistics property driven by growth of E-Commerce, Omichannel and FMCG ▪ Rapid urbanisation, limited supply and requirement for innovation and robotic technology are driving demand for industrial property spaces ▪ Relocation of foreign companies to Thailand following the trade war will enlarge local supply chain ecosystem which in turn boosts demand for factories & warehouses ▪ Adoption of Industry 4.0 will give rise to smart industrial facilities with higher specifications powered by intelligent management tools and automated vehicles
Momentum from ongoing positive structural shifts in the sector
Macro Industry
Positive demographic profile Rapid urbanisation High infrastructure investment Increasing e-commerce platforms New Industry 4.0 & special economic zones Greater implementation
Warehouse Consumers Factory Retail Shop Factory Individual/ SMEs E-Commerce
e-Shop
Omni- Channel
New Supply Chain Model: Warehouse as a center of gravity
Frasers Property Thailand – Corporate Day FY2018/2019
27
Land Area 299k m2 (~187 rai) Net Lettable Area 164k m2 Expected Date of Completion for 1st phase Q4/2020 with NLA of 42k m2
Partnered with Mitsui Fudosan
Bangpakong Logistic Park
Bangpakong ,Chachoengsao
The technology-led smart industrial and logistic parks
Frasers Property Thailand – Corporate Day FY2018/2019
28
Land Area 250k m2 (~156 rai) Net Lettable Area 101k m2 Expected Date of Completion for 1st phase Q4/2020 with NLA of 24k m2
Partnered with Mitsui Fudosan
Wangnoi Logistics Park
Wangnoi, Ayutthaya
The prime distribution center node to northern and northeastern part of Thailand
Frasers Property Thailand – Corporate Day FY2018/2019
29
Land Area 72k m2 (~45 rai) Net Lettable Area 35k m2 Expected Date of Completion Q4/2020
Partnered with Sahathai Terminal
Bangkok Logistics Park
Last mile logistics park, 20 minutes from CBD area with direct connection to industrial ring road and highways
6,619 2,383 14,368 26,680 6,031 3,683 14,085 36,639 6,579 2,634 16,981 29,716 Single-detached house Semi-detached house Townhome Projects Condominium
First-half sales of residential units 2018-2019 Jan-Jun 18 Jul-Dec 18 Jan-Jun 19
Source: Agency for Real Estate Affairs (AREA) Frasers Property Thailand – Corporate Day FY2018/2019
30
has cooled down residential market.
challenging whilst there remains positive
Townhouse segment.
with weak earning outlook as new launch declined for all products.
(million baht)
Economic stimulus campaign by government Chim, Shop, Chai campaign ♦ Transferred fee : 2% to 0.01% ♦ Mortgage fee : 1% to 0.01% ♦ Effective until Dec 2019 for those who buy property <3MB Tax reduction GHB offering low-interest mortgage loans ♦ Interest rate remains at 2.5% for the first 3 years ♦ Borrowed amount : <3 MB ♦ Effective date : 24 Dec 2019 ♦ An overall limit of 50 billion baht Speed up disbursement
Source: NNT (24 Oct 19)
level with prime offices commanding >THB900 per sq.m., whilst occupancy rate remains high.
become major players tenants.
2023 will put pressure on older office building to renovate and upgrade.
Market-wide average monthly gross rents, 2008 to 3Q19 Net new supply, net absorption and vacancy, 2008 to 3Q19
Source: JLL Thailand Frasers Property Thailand – Corporate Day FY2018/2019
31
902
Average Prime Grade Rent
725
Average Rent
552
CBD Grade B
Source: CBRE
Market-wide future for-lease supply pipeline
THB 31 bn Presale value in FY2019
Click icon to add picture
Samyan Mitrtown was successfully launched
in Sep-2019
SYM
Triple Y Residence Presale
Strengthening Commercial Portfolio
Samyan Mitrtown was successfully launched and well-received by the public in Sep-2019.
different types of asset classes ie residential, retail and office
in 2020
Frasers Property Thailand – Corporate Day FY2018/2019
32
single house and SDH in selective areas remain strong despite slowdown in
segment with pricing range between THB2 – 7 mn under Golden Neo, Golden City and Golden Town.
and key regional cities e.g. Chiang Mai, Rayong and Ayutthaya
Strengthening Residential Portfolio
Looking forward 2020
Active Asset Enhancement Initiative and Smart Solutions to drive Industrial Property AUM occupancy rate Strong IP pipeline and positive demand from both existing & new tenants following EEC and US-China trade war Moderate Growth in Residential demand driven by unique design and attractive price
Leverage on existing partnership and relation with Group Companies
Frasers Property Thailand – Corporate Day FY2018/2019
33
Samyan Mitrtown
Investor Relations contact:
FPT.IR@frasersproperty.com
website: www.frasersproperty.co.th