Frasers Property Thailand Analyst Meeting 2/2019 2nd Quarter Fiscal - - PowerPoint PPT Presentation

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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 -


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Frasers Property Thailand

Analyst Meeting 2/2019

2nd Quarter Fiscal Year 2019 Earnings Three Months Ended March 31, 2019

Logistics Park Wangnoi, Ayutthaya

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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

Important Notice & Disclaimer

Frasers Property Thailand - Analyst Meeting 2/2019

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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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Agenda

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Quarterly Highlights

Logistics Park Wangnoi, Ayutthaya

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✓ 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

2Q19 Key Highlights

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

  • f factory (AUM) up

from 69% in Mar-18

✓ 85% OCC Rate

  • f warehouse

(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

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Transforming FPT into a valuable, scalable and integrated real estate platform

JustCo Capital Tower, All Seasons Place

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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

Creating a valuable, scalable integrated real estate platform

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

  • TICON. (*rebranded

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

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Gearing to Build-to-suit portfolio expansion

Target new lease of BTS over

120,000 sq.m. in 2019

valued

THB 3 billion

8

Frasers Property Thailand - Analyst Meeting 2/2019

Bangkok Logistics Park Co.,Ltd

FPRA

Bangna Logistics Park, Thailand

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Before After

Capturing more value from new technology growth model

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

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Customer centric strategy is core to FPT’s business model

BTS

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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BTS Target of 120,000 sq.m. in 2019

High demand in Bangplee area

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

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Executing new initiatives - Cold Chain Distribution Center

Complex & high-tech food processing and cold chain distribution center

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

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▪ 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

  • f 350 rai with 255K sq.m. built-up area in prime

logistics locations - Bangpakong & Wangnoi. Joint Venture Structure

Frasers Property Thailand - Analyst Meeting 2/2019

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Enlarging industrial portfolio with Mitsui Fudosan

Best-in-class logistics facility to cater for high-value tenants

Mitsui Fudosan – Japan’s leading multi-segment real estate developer headquartered in Tokyo

  • 1. Global Business
  • 2. Office Buildings
  • 3. Retail Properties
  • 4. Housing
  • 5. Hotel and Resorts
  • 6. Logistics Facilities

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

  • Near EEC & manufacturing

hub

  • Corner site with

accessibility from 3 major main roads

Wangnoi

  • A strategic logistics node,

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%

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Frasers Property Thailand - Analyst Meeting 2/2019

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Advancing smart solutions partnership with PBA Group

Differentiated value proposition with automation and robotics

➢ 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

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SLIDE 15

BTS (Havi)

FPRA (sahathai)

MF

Indo

Frasers Property Thailand - Analyst Meeting 2/2019

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Investment in progress to enhance multi-segment property execution capabilities

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

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Frasers Property Thailand - Analyst Meeting 2/2019

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Expanding FPT’s portfolio into residential, commercial and hospitality property sectors

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)

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JV partnership with JV partnership with JV partnership with JV partnership with JV partnership with JV partnership with 17

The Next Phase of Frasers Property Thailand

Balanced & diversified portfolio across asset classes and customer segments

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

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Operating and Financial Outlook

For 2nd Quarter Fiscal Year 2019 Six Months Ended March 31, 2019

Logistics Park Bangna, Chachoengsao

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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

Domestic consumption, private investment & tourism will be key drivers supporting economic expansion this year

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

  • In March 2019, Bank of Thailand has lowered

export growth forecast for 2019 to 3% & lowered GDP growth view to 3.8%.

  • Given downside risks from global volatilities, export

contraction could continues following the slowdown in trading partner economies and global trade volume.

  • Private consumptions however is anticipated to

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.

  • Investment in mega projects and infrastructure is

likely to be uninterrupted with EEC legislation already in place.

  • Whilst private investments had a slow start in 2019,

expansions

  • f

investments in machinery & equipment continued from production capacity increase and relocation of manufacturing industries affected by the trade disputes.

  • 5.0%

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

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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%

Industrial Property

Portfolio tenant mix by industry and country/region by revenue

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%

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Industrial Property

2Q19 AUM Portfolio Metrics

Frasers Property Thailand - Analyst Meeting 2/2019

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451

properties under management

Factory

1.15mn sq.m.

AUM

34.1K sq.m. 405

properties under management

Warehouse

1.57mn sq.m.

AUM

3.59

years

110.4K sq.m.

Portfolio Occupancy Rate WALE

2.08

years

Portfolio Occupancy Rate WALE

Mar-19 Mar-18

73% 69% 85% 73%

Mar-19 Mar-18

Net Add YTD Mar-19 Net Add YTD Mar-19

As of March, 2019

1.76

years

3.63

years

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Industrial Property

2Q19 AUM Portfolio Metrics by Entities

Frasers Property Thailand - Analyst Meeting 2/2019

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309

properties

1.09mn sq.m.

Factories & warehouses

547

properties

1.63mn sq.m.

Factories & warehouses Portfolio Occupancy Rate Portfolio Occupancy Rate

Mar-19 Mar-18

75% 61% 83% 79%

As of March, 2019

Mar-19 Mar-18

FPT FTREIT

52.2K** sq.m.

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

110.8K* sq.m.

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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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2Q19 and 1H19 revenue and profit performance

Sale of properties Other Revenue

Net Profit

  • 78%

Q-o-Q

  • 49%

Y-o-Y

+ 85%

Y-o-Y

+ 54%

Y-o-Y

  • 70%

Y-o-Y

EPS

  • 88%

Q-o-Q

(THB mn) (THB mn) (THB)

+ 52%

Y-o-Y

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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

Balance sheet strength

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

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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

  • 49%

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

  • 2%

167 219

  • 24%

Higher fee in 2017 from commission and property management income

  • f TFUND TLOGIS & TGROWTH

prior to conversion

Sales of properties

  • 592
  • 100%

2,025 638 218% No assets monetized to FTREIT during 2Q19

Share of profit from investments

62 68

  • 8%

128 170

  • 25%

Higher share in Dec-17 from recognized profits in the conversion

  • f property funds into FTREIT

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

  • 69%

763 496 54%

Earnings per share

0.04 0.14

  • 71%

0.41 0.27 52%

2Q19 and 1H19 financial performance

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

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2019 Outlook & Key Takeaways

Affirm 2019 Growth Target

for BTS Portfolio at120,000

sq.m.

AUM Occ Rate

  • f 80% with

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

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Investor Relations contact:

FPT.IR@frasersproperty.com

website: www.frasersproperty.co.th