Frasers Property Thailand
Analyst Meeting 2/2019
2nd Quarter Fiscal Year 2019 Earnings Three Months Ended March 31, 2019
Logistics Park Wangnoi, Ayutthaya
Frasers Property Thailand Analyst Meeting 2/2019 2nd Quarter Fiscal - - PowerPoint PPT Presentation
Frasers Property Thailand Analyst Meeting 2/2019 2nd Quarter Fiscal Year 2019 Earnings Three Months Ended March 31, 2019 Logistics Park Wangnoi, Ayutthaya Important Notice & Disclaimer Statements in this presentation constitute forward -
2nd Quarter Fiscal Year 2019 Earnings Three Months Ended March 31, 2019
Logistics Park Wangnoi, Ayutthaya
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 or supervisory body or agency. 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
Frasers Property Thailand - Analyst Meeting 2/2019
Quarterly highlights
Transforming FPT into a valuable, scalable and integrated real estate platform
Operating and financial outlook
Frasers Property Thailand - Analyst Meeting 2/2019
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Logistics Park Wangnoi, Ayutthaya
✓ Ongoing
implementation of ‘Organizational Excellence’ under the new branding ✓ ‘Transformational Growth’ of FPT’s platform capability for long-term shareholder value
✓ +100,000
sq.m. BTS
projects secured from food & retail groups
✓ Strong pipeline
with potential customers across high growth sector including logistics, food & automotive
✓ Strategic
partnership with Mitsui Fudosan and PBA Group
✓ Launched VTO
to acquire GOLD in line with strategic roadmap to become a fully-integrated real-estate platform
Outstanding Operating Performance Accelerated Build-to-Suit Development Modest Earnings with Recurring Income Growth Strategic Partnership Transformational Growth
Frasers Property Thailand - Analyst Meeting 2/2019
✓ 144K sq.m. YTD
Net Add (AUM)
✓ 73% OCC Rate
from 69% in Mar-18
✓ 85% OCC Rate
(AUM) up from 73% in Mar-18
✓ 79% OCC Rate for
total AUM. ✓ YTD 1H19 Revenue jumped +85% Y-o-Y, with YTD net profit of
THB 763 mn, up
+54% Y-o-Y ✓ THB 80 mn Core Profit for 2Q19 from healthy recurring income. Normalized income excl. sales of assets rose +7.3% Y-o-Y
JustCo Capital Tower, All Seasons Place
January 2019
JV with to develop logistics park near a river port in Bangkok
July 2018
JV with to provide co-working space business in Thailand
Growth Strategies
Data & Technology Customer Centric Initiatives Multi Asset Class Platform Development Investment and Partnership
7
A leading provider of a smart integrated platform that provides complementary real estate services
2019
February 2019 VTO of to expand into residential, commercial and hospitality business
April 2018
JV with to develop hyperscale data centre in Thailand
2018 2017
Businesses
Industrial Data Centre
2020 and beyond
Frasers Property became major shareholder of
to FPT in 2019) Introduced new BTS development model.
April 2019
JV with to develop logistics parks
April 2019
Setup a JV in Thailand and acquired 10% in a leading robotic and automation company
Hospitality Residential Commercial Automation Co-working space Frasers Property Thailand - Analyst Meeting 2/2019
Target new lease of BTS over
valued
8
Frasers Property Thailand - Analyst Meeting 2/2019
Bangkok Logistics Park Co.,Ltd
FPRA
Bangna Logistics Park, Thailand
Before After
Frasers Property Thailand - Analyst Meeting 2/2019
9 Resilience to respond to disruptors Agility to quickly react to market changes Sustainability aligned to operations Seamless connectivity with suppliers Reliable service to customers Cost of effective speed to market
Supply Chain Evolution
Big Data Analytics Machine Learning Cloud Computing 3D Printing The Sharing Economy Digital Supply Chain Advance Robotics Internet of Things
Emergence of modern smart industrial and logistics space, that integrates technology and
hardware solutions
Urbanization trends give rises to distribution
facilities close to the densely populated area
Next-generation of supply chain will
change requirement of industrial and logistics assets in terms of network location, size and facility
design
Factory and Warehouse 4.0 Modern warehouses stretch beyond leasing of spaces
Source: SCM World Future of Supply Chain Survey 2016, www.cbinsights.com
BTS Developer Landlord (RBW) Interior Design Fitout vendors MHE vendors
Traditional Approach Customer-Centric Approach
Building design first, Operation fit in later
(Client is the point of contact in the whole process) Operation workflow planning first, Building design fit for the purpose (FPT is the point-of-contact in the entire process)
* Fitout includes CCTV, security access, etc.
Frasers Property Thailand BTS Developer Landlord (RBW) Interior Design Fitout vendors MHE vendors One-Stop solution to support
Seamless & Hassle-Free Flexible Lease Within budget On time Delivery
Frasers Property Thailand - Analyst Meeting 2/2019
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Frasers Property Thailand - Analyst Meeting 2/2019
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Bangplee 3 Bangplee 2 Bangplee 1 Bangplee 4 Bangplee 5 Bangplee 6
▪ FPT total development of 365,000 sq.m. ▪ Occupancy Rate 95%+ ▪ FMCG, Food, e-Commerce, 3PLs ▪ Strongest BTS demand and rates Bangplee Strategic Location
Frasers Property Thailand - Analyst Meeting 2/2019
12 1st Phase of 30,000 sq.m. 2nd Phase of 20,000 sq.m.
4PL food operator that specialised in Cold Chain Logistics and Multi Temperature Food Distribution technology. This new 30k sq.m. facility will be built on a 31 rai land parcel is expected to be completed by 1Q 2020. It will include a 3,400 sq.m. high bay pallet store up to a height of approx. 34 meters.
Bangplee, Samutprakarn
▪ Mitsui Fudosan is a diversified real estate investment portfolio and development expertise with projects in prime locations across Japan ▪ The JV will invest and develop two large-scale technology-led smart industrial and logistics parks
logistics locations - Bangpakong & Wangnoi. Joint Venture Structure
Frasers Property Thailand - Analyst Meeting 2/2019
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Mitsui Fudosan – Japan’s leading multi-segment real estate developer headquartered in Tokyo
Cater for growing customers’ supply-chain and logistics requirement in EEC and North/ North Eastern markets in Thailand Modern new logistics park of international standard with facilities and amenities Strengthening marketing network and sharing of knowhow and expertise
3 2
New development pipeline with an internationally renowned developer.
4
Bangpakong
hub
accessibility from 3 major main roads
Wangnoi
distribution gateway to Northern and North Eastern of Thailand
MF
Group assets USD 60bn ** Since 1673 Rev 11.3bn **
** As of Dec18
1
49.0% 51.0%
Frasers Property Thailand - Analyst Meeting 2/2019
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➢ Founded in 1987, PBA has gained traction in larger scale and grown rapidly over the past few years as a regional player in robotics & automation solutions. ➢ Presence 10 countries in Singapore, Malaysia, Indonesia, Philippines, China, Taiwan, Korea, Thailand, India & USA. ➢ Manufacturing base Malaysia and China ➢ Total staff 500+ more than half is engineers
PBA Group Background Key PBA Partners & Customers
High profile authorities and corporates A 51% 49% B PBA Robotics (Thailand)
RACE Academy
JV for Robotics & Automation Services
Investment of 10% Partnership Structure
Automation
A full suite of factory & warehouse automation solution provider
Autonomous Mobile Robots (AMRs) Collaborative Robots (Cobots) Motion Control Machine Vision Systems Machine Algorithm Robotic Components Precision Robotics
BTS (Havi)
FPRA (sahathai)
MF
Indo
Frasers Property Thailand - Analyst Meeting 2/2019
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Industrial Property
✓Secured +100,000 sq.m.
BTS
✓JV with Mitsui Fudosan for
two logistics facilities in Wangnoi & BPK
Data Center
✓ Hyperscale Data Centre
Facility at Ramkhamhang with total investment at THB 7.3 bn
✓ Completion in 2021
Smart Solutions
✓3 JustCo offices with total
NLA of with the third & largest location of 17,000 sq.m. by 3Q19
✓JV with PBA group to
provide robotics & automation solutions
FTREIT
✓
THB 1.9 bn sales of assets in 1Q19 and new batch of asset sales valued THB 0.6 bn
✓
Maintain high occupancy & portfolio growth
Multi-Asset Class Capability
Leveraging on GOLD’s quality platform & ecosystem
✓ Residential property ✓ Commercial property ✓ Hospitality property
Note: FPT has obtained the process to launch a conditional VTO of GOLD on 7th May 2019. Tender Offer process is expected to be completed in July/ Aug-19
Frasers Property Thailand - Analyst Meeting 2/2019
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Golden land : Immediate scale of a quality platform & organic ecosystem
Source : SETSMART as of 24 December 2018
GOLD Business Structure GOLD
Residential 60% 20% 100% 100% 100% 22.6% 33% GOLDPF ▪ Park Venture Ecoplex ▪ Sathorn Square ▪ Marriott Mayfair Hospitality Mixed-use ▪ Hotel ▪ Retail ▪ Office 49% ▪ Golf Course Others Commercial and Business Pro-Forma Total Assets
(1) For trailing 12 Months as of the end of December 2018 and no related transaction assumption (2) Sourced from Companies’ Financial Statements
Pro-Forma Total Revenue
1 2 4 3
Expansion into adjacent businesses, in line with FPT’s strategy to build an integrated real estate platform with multi-segment property execution capabilities Immediate scale with the acquisition of a quality platform in residential, commercial and hospitality property sectors Balanced and diversified portfolio across asset classes and customer segments Enhance FPT’s earnings and return on equity
Industrial Property 51% Residential 33% Commercial and business 8% Hospitality 2% Others 6% Industrial Property 28% Residential 64% Commercial and business 5% Hospitality 2%
> THB86 bn(1) > THB22 bn(1)
JV partnership with JV partnership with JV partnership with JV partnership with JV partnership with JV partnership with 17
Thailand
Hospitality Residential Commercial & Retail Industrial Investment Management
Frasers property (Thailand) Golden Land
Data Centre Automation Township
Frasers Property Thailand - Analyst Meeting 2/2019
Regional Expansion
(Indonesia)
Real estate as a service
The realized synergies of an integrated property platform will further add value to the shareholders
For 2nd Quarter Fiscal Year 2019 Six Months Ended March 31, 2019
Logistics Park Bangna, Chachoengsao
253,834 288,878 582,558 200,655 128,903 360,688 230,796 255,605 76,140 134,573 2016 2017 2018 Mar-2018 Mar-2019 Net Application Application Approved
Automotive 25% Petrochemical and chemical,29% Electronics, 5% Aircraft,5% Medical,4% Travelling,3% Bio-technology,2% Others 27%
19
THB mil
900 948 888 781 1,040 914
Projects
Manufacturing Production Index (MPI) and Capacity Utilization Consumer confidential index and Private investment index FOREIGN INVESTMENT FROM MAJOR COUNTRIES (FOREIGN EQUITY>=10%)
Index %YOY Frasers Property Thailand - Analyst Meeting 2/2019
export growth forecast for 2019 to 3% & lowered GDP growth view to 3.8%.
contraction could continues following the slowdown in trading partner economies and global trade volume.
remain positive in 1H19 given higher Consumer Confidence Index (CCI) since early this year. Thailand Government’s stimulus worth THB20 bn will also help to revitalize the momentum.
likely to be uninterrupted with EEC legislation already in place.
expansions
investments in machinery & equipment continued from production capacity increase and relocation of manufacturing industries affected by the trade disputes.
0.0% 5.0% 10.0% 75 80 85
Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18 Jan-19 Feb-19 Mar-19
Customer confidencial index Private investment index 345 329 411 387
Jan-Mar 2018 Jan-Mar 2019
Logistic/ Warehouse Operator 33.44% Automotive 20.16% Electronics/ Computer 15.81% Packaging/Paper 3.60% Plastic Injection/Products 3.49% Medical/Healthcare /Cosmetic 3.38% Consumer Products 2.83% Food & Beverage/ Agro 2.70% Metal Stamping 2.49% Others 12.10%
Frasers Property Thailand - Analyst Meeting 2/2019
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As of March, 2019
COUNTRY/ REGION INDUSTRY
Japan 36.23% Germany 15.18% Thailand 11.37% France 8.57% USA 5.46% China 4.81% Korea 3.97% Singapore 3.20% Malaysia 1.41% Others 9.80%
Frasers Property Thailand - Analyst Meeting 2/2019
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properties under management
AUM
properties under management
AUM
years
Portfolio Occupancy Rate WALE
years
Portfolio Occupancy Rate WALE
Mar-19 Mar-18
Mar-19 Mar-18
Net Add YTD Mar-19 Net Add YTD Mar-19
As of March, 2019
years
years
Frasers Property Thailand - Analyst Meeting 2/2019
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properties
Factories & warehouses
properties
Factories & warehouses Portfolio Occupancy Rate Portfolio Occupancy Rate
Mar-19 Mar-18
As of March, 2019
Mar-19 Mar-18
Net Add YTD Mar-19 Net Add YTD Mar-19
* FTREIT net add inclusive of properties acquired from FPT over the period. ** In the absence of property sales, organic net add YTD Mar-19 would be 106.4K sq.m. for FPT and 38K sq.m. for FTREIT
380 390 381 390 401 709 791 592 48 1,569 2,025 638 2,025 78 70 81 90 77 219 167 69 76 82 72 87 137 159
1,119 585 2,113 2,577 565 1,703 3,143
1Q18 (Jan -Mar 18) 2Q18 3Q18 1Q19 2Q19 (Jan -Mar 19) 1H18 (Oct 17 - Mar 18) 1H19 (Oct 18 - Mar 19)
261 67 340 684 80 496 763
1Q18 (Jan - Mar 18) 2Q18 3Q18 1Q19 2Q19 (Jan- Mar 19) 1H18 (Oct 17- Mar 18) 1H19 (Oct 18- Mar 19)
0.14 0.03 0.18 0.37 0.04 0.27 0.41
1Q18 (Jan - Mar 18) 2Q18 3Q18 1Q19 2Q19 (Jan-Mar 19) 1H18 (Oct 17 - Mar 18) 1H19 (Oct 18 - Mar 19)
34% 67% 18% 15% 71% 42% 25% 53% 8% 74% 79% 37% 64% 7% 12% 4% 3% 14% 13% 5% 6% 13% 4% 3% 15% 8% 5% 1Q18 (Jan - Mar 18) 2Q18 3Q18 1Q19 2Q19 (Jan - Mar 19) 1H18 (Oct 17 - Mar 18) 1H19 (Oct 18 - Mar 19)
Rental and related service income Management fee income from associate
Revenue Structure
Frasers Property Thailand - Analyst Meeting 2/2019
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Sale of properties Other Revenue
Net Profit
Q-o-Q
Y-o-Y
+ 85%
Y-o-Y
+ 54%
Y-o-Y
Y-o-Y
EPS
Q-o-Q
(THB mn) (THB mn) (THB)
+ 52%
Y-o-Y
19,162 13,322 14,981 18,857 5,513 2,726 2,638 2,605 11,418 24,934 25,380 25,666 36,093 40,982 42,999 47,128
FY2016 FY2017 9M18 2Q19 IBD Non-IBD Shareholder's Equity Total assets
306 2,620 6,448 8,763
FY2016 FY2017 9M18 2Q19
Frasers Property Thailand - Analyst Meeting 2/2019
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Balance Sheet Composition Cash & Current Investments
(THB mn)
Gearing Ratio
Surplus cash on hands for CAPEX and investments
1.68 0.53 0.59 0.73 1.65 0.43 0.34 0.39 FY2016 FY2017 9M18 2Q19
Comfortable Gearing Ratio up to 1.5x
(X)
Growing Assets and Stronger Equity Base
(THB mn)
(Sep 18) (Mar 19) (Sep 18) (Mar 19) (Sep 18) (Mar 19) Gearing Ratio Net IBD/ E
Profit & Loss statement (THB mn) 2Q19 Jan- Mar 19 1Q18 Jan- Mar 18 1H19 Oct 18- Mar 19 1H18 Oct 17- Mar 18 Remark Total revenue
565 1,119
3,143 1,703 85%
Rental and relate service income
401 380 6% 791 709 12% Rising rental from higher occupied area of factory and warehouse
Management fee from funds/REIT
77 78
167 219
Higher fee in 2017 from commission and property management income
prior to conversion
Sales of properties
2,025 638 218% No assets monetized to FTREIT during 2Q19
Share of profit from investments
62 68
128 170
Higher share in Dec-17 from recognized profits in the conversion
Finance cost
147 127 16% 279 252 11% Higher from the new debenture issued at THB 5 Bn in Mar-19
Net Income
80 261
763 496 54%
Earnings per share
0.04 0.14
0.41 0.27 52%
Frasers Property Thailand - Analyst Meeting 2/2019
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Growth momentum for industrial property continues.
✓ Improving occupancy & new leases driven
by logistics, e-commerce, automotive, electronics, FMCG
✓ Strong pipeline in Build-to-Suit facilities ✓ Monetize quality assets to FTREIT
Integrating new technology & innovation Organization excellence under the new branding to unlock further growth potential Multi-Segment Real Estate Capabilities in Focus
26
Affirm 2019 Growth Target
for BTS Portfolio at120,000
sq.m.
AUM Occ Rate
Major Growth Under FPT
Progressive Implementation of Robust Strategy Plan The ‘Platform Organization with Integrated Real- Estate Capabilities’ for long-term competitiveness Game-changing towards ‘Customer Centric’ solutions guided by a unifying idea that ‘experience matters’ Optimize business potential with flexibility to apply different real estate capabilities and solutions to land bank and master planning management
✓ Potential new partnership to strengthen business
delivery in Thailand & select ASEAN markets
Frasers Property Thailand - Analyst Meeting 2/2019
Investor Relations contact:
FPT.IR@frasersproperty.com
website: www.frasersproperty.co.th