Oppo rtunity Day (27 May 2019) 1Q2019 Re sult Your Ultima te - - PowerPoint PPT Presentation

WHA Cor por ation Public Company L imite d

Oppo rtunity Day (27 May 2019) 1Q2019 Re sult

“Your Ultima te Solution Pa r tne r ”

Disclaimers

WHA Group

The information contained in this presentation is for information purposes only and does not constitute an offer or invitation to sell or the solicitation

• f an offer or invitation to purchase or subscribe for share in WHA Corporation Public Company Limited (“WHA” and shares in WHA, “shares”) in any

jurisdiction nor should it or any part of it form the basis of, or be relied upon in any connection with, any contract or commitment whatsoever. In addition, 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 and its directors. You are cautioned not to place undue reliance on these forward looking statements, which are based on the current view of the management of the Company on future events. No assurance can be given that future events will occur, that projections will be achieved,

• r that the Company's assumptions are correct. The Company does not assume any responsibility to amend, modify or revise any forward-looking

statements, on the basis of any subsequent developments, information or events, or otherwise. These statements can be recognized by the use of words such as “expects,” “plans,” “will,” “estimates,” “projects,” or words of similar meaning. Such forward-looking statements are not guarantees of future performance and actual results may differ from those forecast and projected or in the forward-looking statements as a result of various factors and assumptions.

2

Agenda II. Summary of 2018 Performance IV. 1Q2019 Financial Performance Appendix I. WHA Group Overview III. 2019 Business and Financing Plan

3

WHA GROUP AT-A-GLANCE

WHA Group Overview

2.3/2 mm m2 under owned & managed 200+ well-known tenants profile 39%

3PL

23%

Japanese

Logistics

11/1 + 3

industrial estates

750 well-known

customers profile

34%

Auto

36%

Japanese

25,300/1

rais undeveloped area

68,500/1

rais total IEs

Industrial Development

105

mm m3

552

equity MW

Utilities & Power

4

data centers

FTTx Services

Digital Platform

Utilities Power 459

equity racks

5

Industrial Estates

WHA is a SET-50 listed company with a market capital of USD 1,905/3 mm and under MSCI small-cap index

4

Group Structure – Operating Companies

WHA Group Overview

WHA KPN Alliance Central WHA Alliance WHART NAV per unit –THB 9.97/1 Paid-Up Capital–THB 20,584.8 mm Total Asset–THB 33,132.6 mm WHABT NAV per unit –THB 10.39/1 Paid-Up Capital–THB 1,942.9 mm Total Asset–THB 2,623.6 mm

15.00% 15.00%

WHA Daiwa Logistics Property WHA Infonite Registered – THB 400 mm Paid-up – THB 400 mm WHA Industrial Development PCL. Registered – THB 6,000 mm Paid-up Cap – THB 3,882 mm

98.54% 97.67%

Core Business

WHA Corporation PCL Registered – THB 1,567.8 mm Paid-up Cap – THB 1,439.1 mm WHAUP/2 Registered – THB 3,825 mm Paid-up Cap – THB 3,825 mm

70.00%/2

Property Funds and REITs

HPF NAV per unit –THB 9.91/1 Paid-Up Capital–THB 4,629.5 mm Total Asset–THB 4,728.1 mm

22.95%

HREIT NAV per unit – THB 8.85/1 Paid-Up Capital–THB 6,223.4 mm Total Asset–THB 9,730.8 mm

15.00%

JV Collaborations

Gheco-One Glow IPP Houy Ho Power GNLL 2 Gulf Solar WHA Gunkul BPWHA1 JV Collaborations – Utilities & Power/2

64.97% 49.99% 50.99% 35.00% 5.00% 12.75% 25.01% 25.01% 75.00% 25.01%

Eastern Seaboard Clean Energy

33.33%

Remarks: /1 NAV per unit as of Mar 31, 2019 /2 Held by WHA Industrial Development PCL.

Genesis Data Center

33.33%

Gulf VTP Gulf TS1-4 Gulf WHA MT

25.01% 25.01% 35.00% 15.00%

WHA Industrial Zone Nghe An Joint Stock Company/2 WHA -JD Alliance

51.00%

Eastern Seaboard Industrial Estate

99.00%

SUPERNAP Thailand

60.00%

5

Location Map

WHA Group Overview

WHA 50+ Strategic Locations

WHA is a key player in the development pf the Eastern Economic Corridor (EEC)

6

Key Deliverables

Summary of 2018 Performance

• FTTx Service in 5 industrial

estates in operation

• Captured both tier III and

IV Data Center with 459 equity racks

• Approx. 260,000 m2 pre-

leased/new contract area mainly thanks to the new emergence of E-Commerce era

• Successful Asset

Monetizations for both WHART and HREIT

• No.1 market share in

terms of industrial land sale

• Obtained EEC privileges

for all industrial estates in Chonburi and Rayong

• Official launch of first

international industrial estate in Vietnam

• Achieved

105 mm m3 utilities sale and management, representing 5% volume growth y-o-y

• Completed equity MW of

Power plant of 521 MW with additional 43 MW To be CODed within 2019

7

Key Achievements

Summary of 2018 Performance

2018

K E Y A C H I E V E M E N T S

POWER ACHIEVED COD

521 Equity MW

4

DATA CENTERS

COMMENCED OPERATION WITH

459 Equity RACKS

EEC PRIVILEGE

ALL I.E.S IN CHONBURI AND RAYONG ARE UNDER

2.3 MILLION sq.m.

UNDER OWNERSHIP & MANAGEMENT

5

COMMENCED OPERATION FTTx in

L O G I S T I C S I N D U S T R I A L D E V E L O P M E N T U T I L I T I E S & P O W E R D I G I TA L P L AT F O R M

976

/1 RAIS

OFFICIAL LAUNCH OF THE FIRST INTERNATIONAL I.E. IN

VIETNAM

Industrial Estate WITH 3,110 DEVELOPED RAIS

LAND SALE

259,853

SECURED PRE-LEASED / NEW CONTRACT AREA

sq.m.

105 MILLION M3 OF

UTILITIES AND SALES MANAGEMENT VOLUME INITIATIVE OF VALUE ADDED

e.g. RO Technology and Demineralized Water PRODUCTS

WHART HREIT

SUCCESSFUL

ASSET MONETIZATIONS

INTO BOTH

Remarks: /1 Including Vietnam Project of 43 rais but excludling Letter of Intent (LOI) in Thailand of 256 rais.

8

Key Significant Events From Capital Market Activities

Summary of 2018 Performance

2 3 4

Massive Interest Cost Saving Successful Asset Monetization to HREIT 5-Star Corporate Governance Obtaining

1

Successful Asset Monetization to WHART

• 2018 bond issuance up to

THB 11.8 bn translating into Interest Cost Saving more than THB 430 mm

• Received 5-star rating

from Thai Institute of Directors (IOD) in Oct 2018

• WHAID monetized assets with

total area of 71,047 m2 to HREIT with the total asset value of THB 2,067 mm

• HREIT assigned “BBB+” rating

from TRIS in Oct 2018

• WHA monetized assets with

total area of 156,534 m2 to WHART with the total asset value of THB 4,465 mm

• WHART assigned “A” rating

from TRIS in Jan 2018

9

10,446 10,446 1,964 1,390 574 9,080 9,080 2,542 2,558 55

1Q2019 Financial Highlights

Summary of 1Q2019 Performance Total Revenue Inclusive of Share of Profit

• In Q1’19, total revenue including share of profit increased by 10% Y-o-Y while, excluding impact from FX and one-off item

which was impact from TFRS 15 accounting standard adoption, total revenue including share of profit (normalized basis) increased by 19% Y-o-Y, mainly attributable to the revenue recognition from deferred revenue from asset monetization to WHABT in 2015 as well as increasing in rental income and utilities income in Q1’19 Y-o-Y despite of the lower share of profit from power business due to planned major maintenance for Gheco-One operated only 51 days in Q1’19.

Unit: THB mm

Total Revenue Inclusive Share of Profit (Financial Statement) Total Revenue Inclusive Share of Profit (Normalized) Total Revenue Share of Profit Share of Profit (Normalized) Impact from FX One-Off Item 12,410

(1)

11,836

(2)

11,622

(1)

11,638

(2)

(2%)*

Remark: (1) Representing Total Revenue Inclusive Share of Profit (Financial Statement) Remark: (2) Representing Total Revenue Inclusive Share of Profit (Normalized)

10

1Q2018 1Q2019 2017 2018

(71)

(3) Include Share of Profit from JV’s Asset Monetization to WHART in 4Q’2018 :

2,775 2,775 672 421 251

3,447

(1)

3,196

(2) (3) (3)

3,480 3,480 323 321 94 (92)

+ 19%* 3,801

(2)

3,803

(1) (4) (5)

(4) Write-off tax payment related to BOI from Gheco-One: (5) Impact from TFRS 15 accounting standard

19% 11%

11

Net Profit

1Q2019 Financial Highlights

Financial Performance

Unit: THB mm

+ 2%*

• In Q1’2019, the reported net profit and normalized net profit dropped by 48% and 31% Y-o-Y respectively mainly due to

the fact that there was the asset monetization to HREIT during Q1’18,while during Q1’2019 there was the planned major maintenance of Gheco-One power plant compressing the share of profit from power business, as well as the accounting impact from TFRS15 accounting standard.

• The normalized net profit margin in Q1’19 stood at 11% due mainly to one-off impact of deferred revenue recognition

from WHABT’s monetization in 2015 having low profit margin.

Remark: (1) Impact from FX attributed to parent (2) Write-off tax payment related to BOI from Gheco-One (3) Impact from TFRS 15 accounting standard

* % Representing Normalized Net Profit Growth

Note: Realize profit (loss) of FX impact for Q12019 : THB 4.8 mm

2018 Net Profit Net Profit (Normalized) Impact from FX(1) One-Off Item

Normalized Net Income Margin

2017 24% 25%

3,266 401 2,907 2,918 39 (50) 780 604 175

1Q2018

2,865

(2)

407 418 66

1Q2019

(77)

(3)

(31%)*

Revenue from Sales of Industrial Estate (Industrial Development Business) THB 421 mm 1%

• Mainly from higher land price transferred in Q1’19 compared

to those in Q1’18. Revenue from Sale of Investment Properties THB 2,101 mm 45%

• Mainly from revenue realized from Deferred Revenue from

asset monetization to WHABT in 2015. Rental, Service Revenue and Other Incomes THB 276 mm 8%

• Due to increase of rental revenue from RBF & RBW and also

pipe rack rental revenue. Revenue from Sales and Service (Utilities Business) THB 559 mm 9%

• Due mainly to completion of COD of 6 SPPs since 2Q’17 drove

the demand of industrial water and wastewater treatment in Q1’19. Share of Profit from JVs and Investment in Associates THB 310 mm 53%

• Mainly due to Q1’19 being a low base quarter as Gheco-One
• perated only 51 days due to Planned Major Maintenance as

well as accounting impact from TFRS 15 accounting standard. Share of Profit from JVs and Investment in Associates (Normalized Basis) THB 308 mm 25% Interest Expenses THB 278 mm 11%

• Decrease in interest expense from lower weighted average

cost of fund mainly from issuance of latest bond and utilization of short-term instruments compared to Q1'18. Net Profit Attributable to Owners of the Parents THB 407 mm 48%

• Performance in Q1’19 decreased mainly due to the scheduled

major maintenance for Gheco-One. Moreover there was no revenue from asset monetization to HREIT in Q1’19 compared to 1,259 THB mm with GPM of 44% in Q1’18.

• However, in Q1’19 ,there was a strong performance in rental

and service business as well as the utilities business with the lower interest expense. Net Profit Attributable to Owners of the Parents (Normalized Basis) THB 418 mm 31%

1Q2019 Financial Highlights

Financial Performance

12

Total Reported Revenue and Share of Profit : THB 3,803 mm 10% Y-o-Y | Reported Net Profit : THB 407mm 48% Y-o-Y Total Normalized Revenue and Share of Profit : THB 3,901 mm 19% Y-o-Y | Normalized Net Profit : THB 418 mm 31% Y-o-Y

2,317 2,200 665 1,043 835 974 933 106 500 1,000 1,500 2,000 2,500 2012 2013 2014 2015 2016 2017 2018 1Q2019

Year Market (rai) WHA ID (rai) % Market 2018 2,210 933 42% 2017 1,700 974 57% 2016 1,442 835 58% 2015 2,121 1,043 49% 2014 1,576 665 42% 2013 4,746 2,200 46% 2012 10,872 2,317 21% 2011 5,457 1,670 31% 2010 3,622 930 26% 2009 901 144 16% 2008 4,170 1,621 39% Total 38,817 13,332 34%

Industrial Estate Business – 1Q2019 Operating Performance

• No. 1 by Land Sale with 34% market share from 2008 – 2018. However, in the period 2015 – 2018, the company achieved

more than 50% market share on the average

Source: CBRE and WHA Industrial Development

Our Domestic Land Sales Record

Unit: rai

Domestic Industrial Market Share

34%

Market Share

• c. 13,332 rai
• f Total Land

Sales from year 2008 until 2018

• Achieved domestic land sale of 106 rais, with remaining backlog of 667 rais as of Mar 19
• The 7 new contracts for land sale are in industry such as automotive, electronic and other, mainly from regions such as China,

Taiwan, Thailand and other.

• All of our industrial estates in EEC area have been designated as “Targeted Industries Promotion Zone”, totaling 34,434 rais
• 10th Industrial estate of WHA Group, named “WHA ESIE3” in Chonburi province, totaling 2,197 rais, officially launched on 1Q’2019

Summary of 1Q2019 Performance

13

Industrial Estate Business – Customer Profile

To Date*

2012

763 Customers

832 Contracts

2012

1,150 Contracts

Q3’18

555 Customers

Summary of 1Q2019 Performance

Remark: *Exclude Vietnam’s Customer and Contract

1Q’19* 1Q’19*

Our Customers & Contracts Customer Breakdown

14 During 2017 - 1Q19*

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 1Q2019

Logistics & Industrial Properties Business – 1Q2019 Operating Performance

Group-Owned assets and preleased Asset Under Management

Area owned by WHA Industrial Development and its subsidiaries Area sold to HPF and HREIT

Industrial Properties

Area owned by WHA and its subsidiaries Area sold to WHART and WHABT

Logistics Properties

701,677 219,199 482,478 1,162,466 484,862 1,647,328

88,913 141,619 141,619 169,433 891,286 298,139 192,341 505,051 1,108,740

Total 2,349,005

Unit : sq.m.

CAGR 31.24% (2006A – 2018A) CAGR 28.95% (2012A – 2018A) 27% 20% 20% 20% 11% 2%

Thai Japan Europe Asia(Exclu. Japan, Thai) USA China

44% 31% 22% 2% 1%

3PL FMCG&Healthcare Manufacturer E-Commerce Other

30% 25% 12% 8% 11% 10% 4%

Japan Europe Asia(Exclu. Japan, China) USA Australia China Other

30% 28% 9% 18% 5% 10%

Auto&Parts Logistic Electronic Consumer Industrial Service Other

Industrial Properties Business Logistics Properties Business

Customer by Nationality Customer by Industry

Industrial Properties Business Logistics Properties Business

2,150,410

Remark: Figures as of Mar 31,2019

15

Summary of 1Q2019 Performance

2,115,293 1,975,361 2,321,721

179,582 203,028 105,986 109,565 213,657 27,284

• 35,595

52,023 46,196 4,972

• 50,000

100,000 150,000 200,000 250,000 300,000 2014 2015 2016 2017 2018 1Q2019 RBF/RBW BTS/Warehouse farm

Logistics & Industrial Properties Business - Performance

Unit: Sq.m.

Pre-Leased / New Contracts

Remark: Pre-leased/New contracts performance based on gross basis

• WHA has secured pre-leased area/new

contracts for Built-to-Suit, warehouse farm and RBF/RBW totals 32,256 sq.m. during 1Q2019

• 27,284 sq.m. for Built-to-Suit, mainly

from E-Commerce customer

• 4,972 sq.m. for RBF and RBW, mainly

from automotive customer

• Under negotiation with 2-3 major customers

with leasable area of c.100,000 sq.m. to be finalized by 2019.

141,581 161,588 259,853 16

Summary of 1Q2019 Performance

32,256

34 39 42 43 46 49 53 23 22 21 19 17 17 17 28 29 31 32 33 34 35

85 90 94 94 96 100 105

• 10

10 30 50 70 90 110 130 150 2012 2013 2014 2015 2016 2017 2018 Industrial Water Raw Water Wastewater

Utilities Business – 1Q’19 Operating Performance

Utilities Portfolio Growth – Volume and Selling Price

Million m3/ year

14.5 16.0

Average Selling Price

Baht/ m3 Baht/ m3 Baht/ m3

Selling Price Growth

• CAGR2012-2018 2.3%

Volume Growth

• CAGR2012-2018 3.7%

Remark: The Utilities & Power business’s operating matrix under WHA level may differ from one shown in WHAUP level as a result of Pre-IPO restructuring, resulting in partial recognition in FY2016 under WHAUP.

Summary of 1Q2019 Performance

16.6

17

13 14 4 4

9 9

26 27

1Q'18 1Q'19

Water Consumption 2017 2018 2019E 2020E 2021E SPP COD

3,500 – 4,000 m3/day

Potential Demand from New Power Plants

GVTP (16 May 17) Gulf TS1 (8 Jul 17) Gulf TS2 (Sep 17) Gulf TS3 (Nov 17) Gulf TS4 (Jan 18) GNLL2 (Jan 19) Other SPP (Mar 19) Block 1 Block 2 CCE (Q4’19)

Waste to Energy 1,000 m3 / day IPP COD 40,000 m3 / day Petrochemical

+13,000 +3,000 On Schedule

Power Business – Well-Balanced Portfolio with Strategic Location

Summary of 1Q2019 Performance

Maturit y < 20 Years, 27% Maturit y ≥ 20 Years, 73%

IPP 52% SPP 48%

By Type of Power Plant By Type of Sourcing

Coal 43% Gas 53% Hydro 4% By Type of Power Plant By Type of Sourcing VSPP 100% Solar 87% WTE 13%

Conventional Power: 547 Equity MW Secured Renewable Power: 22 Equity MW Secured

EGAT / PEA/ MEA, 92% Indust rial Users , 8%

Highly reliable off-taker (EGAT)

Client Profile

Matur ity ≥ 20 Years , 100%

Long-maturity Portfolio

Additional Incoming Project in 2019 2018

Portfolio Summary

Project Name Type JV Partner Location Installed Capacities (MW) WHAUP Portion Equity MW COD Operating Phase Gheco-I IPP Coal Glow Map Ta Phut IE 660 35.00% 231 Q3’12 Glow IPP IPP Gas Combined Cycle Glow WHA CIE 1 713 5.00% 36 Jan-03 Houay Ho Power IPP Hydro Glow Lao PDR 152 12.75% 19 Sep-99 GJP NLL SPP Gas Co-gen Gulf JP WHA RIL 123 25.01% 31 May-13 Gulf Solar VSPP Solar Gulf WHA LP 1, WHA CIE 1, WHA ESIE 1, ESIE 0.6 25.01% 0.2 Jun-14 – Jan-15 WHA Gunkul VSPP Solar Gunkul Bangna and Ayudthaya 3.3 74.99% 2.5 Apr – Jul-14 BGWHA-1 SPP Gas Co-gen B Grimm WHA CIE 1 130 25.01% 33 Nov-16 GVTP SPP Gas Co-gen Gulf MP ESIE 137 25.01% 34 May-17 GTS1 SPP Gas Co-gen Gulf MP ESIE 134 25.01% 34 Jul-17 GTS2 SPP Gas Co-gen Gulf MP ESIE 134 25.01% 34 Sep-17 GTS3 SPP Gas Co-gen Gulf MP WHA ESIE 1 130 25.01% 32 Nov-17 GTS4 SPP Gas Co-gen Gulf MP WHA ESIE 1 130 25.01% 32 Jan-18 GNLL2 SPP Gas Co-gen Gulf MP WHA RIL 127 25.01% 32 Jan-19 Solar Rooftop Projects Private PPA Solar 100% Owned IEs/ Logistic Center 2.0 100.0% 2.0 May’18-Mar’19 Total 2,576 552 Construction Phase Solar Rooftop Projects Private PPA Solar 100% Owned IEs/ Logistic Center 14.3 100.0% 14.3 Q2’19-Q1’20 CCE VSPP Waste-to-energy Glow& Suez WHA CIE 1 8.6 33.33% 2.9 Q4’19 Total 23 17

Portfolio Analysis

Digital Platform Business

Comprehensive IT solution provider leveraging on WHA Group Customers Base

• Invested 15% stake in Supernap Thailand which is Thailand’s

first certified Tier IV, modular, high density, co-location data center.

• Widen coverage to EEC area for supporting rapid growth of data

usage followed by investment expansion.

• 459 equity racks with 4 data centers as of Mar 2019
• Business Collaboration with Reputable Partners

Summary of 1Q2019 Performance

19

Expand business domestically and internationally esp. in CLMVI and China Capitalize on government policy by focusing on high-potential industry clusters e.g. E-Commerce, aviation and rail-related business etc. Embrace innovative practices as well as new disruptive technology to stay ahead of the competition Establish long-term partnership with global/ regional key players

Logistics Business - Strategy

Business and Financing Plan - 2019

20

Logistics Business – 2019 Strategy

Business and Financing Plan - 2019

Higher Value Properties, Riding Technology Wave

Aviation & Aerospace Seaport or other transportation infrastructure E-Commerce

Capitalize On High Growth & Government Supported Sectors Emphasis on Strategic Partnerships Establish long term and mutually beneficial partnerships with global and regional players

Existing Footprint Under Study

Regional Expansion Embrace on new or disruptive technologies

Smart Warehouse Robotics Automation Internet Of Things Delivery Drone Big Data

21

Logistics Business – Key Deliverables & High Value Projects In 2019

Business and Financing Plan - 2019

Upcoming High Value Projects In 2019

WHA-JD E-Commerce Center WHA E-Commerce Center Multi-temperature Warehouse WHA E-Commerce Center

60,000 SQM 9,000 SQM

Key Deliverables

250,000 sq.m. Pre-Leased and New Contract Area

• Approx. 187,000 sq.m. Leasable Area

Monetized to REITs, divided into

• Approx. 157,000 sq.m. to monetized to WHART
• Approx. 30,000 sq.m. to be monetized to HREIT

22

60,000 SQM 60,000 SQM

Incentive for E-Commerce Park in EEC area

Logistics Business - Outlook

Business and Financing Plan - 2019

Thailand E-Commerce Park Background Incentive for E-Commerce Park WHA E-Commerce Park

Project Area : 200,000 SQM Location : Bangna-Trad km. 37, Chachoengsao

Project Development in Chachoengsao to Support the Growth of E-Commerce. State of the Art Facilities, integrating Digital, Automation and Smart Logistics

Supporting Activities and Services

Warehouse Management Automation Storage Smart Logistics Digital Platform E-Payment Innovations, R&D

• Develop E-Commerce Smart Logistic and Automation

industry in Thailand relating to EEC policy

• Enhance E-Commerce activates which need a location

closing to airport and efficient duty free zone area

• Unlock some regulation relating to customs

procedures to comply with E-Commerce business ,e.g. reject and refund transaction

Extend the duty payment period for 14 days Have a right to waive duty transaction within 14 days of goods returned to the duty free zone Duty be collected immediately when goods are transfer

• ut of free zone

Duty of goods rejected or refunded is refundable of 90%

Existing Regulation

Incentive Incentive

23

Industrial Estate Business – 2019 Strategy

Business and Financing Plan - 2019

Extend our Leadership as Thailand’s

• No. 1 Industrial Estate

Expand toward High Value Industrial Projects Establish our Premium Brand in Strategic Regional Countries focusing on Vietnam

From Thailand Leader to ASEAN Champion

24

Industrial Estate Business – 2019 Strategy

Business and Financing Plan - 2019

From Thailand Leader to ASEAN Champion

Extension of Domestic Leadership

Reap full benefits of best position with ample land stock Explore strategic partnerships for land acquisition and new IE development

WHA ESIE 3

with 1,000 Net Sellable Rai developed by end

• 2019. Construction

started in 2018 with

LARGE ANCHOR TENANT

10

Industrial Estates in Thailand

In 2019

1

WHA IER, Rayong Saraburi Rayong Upcoming IEs by 2022

+3

Including

New Estate

10,000Rai/1

LAND STOCK IN THAILAND

Remark: /1Land stock includes land developed and to be developed

Higher-Value Moving Up

All WHA Industrial Estates applied EEC for promoted 10 new S-Curve Industries

Vietnam Expansion

Ensure success of Nghe An Project and Establish our Premium Brand Identify 2nd Industrial Estate Project in Vietnam

WHA ESIE4 WHA ESIE WHA ESIE2 WHA ESIE3 WHA CIE WHA CIE2 WHA EIE ESIE New I.E. in Rayong

Drone Security Smart Metering Wastewater Treatment Control System Ultrasonic Water Depth Sensor Online Wastewater Quality Monitoring System Maintenance Smart App Online Air Quality Monitoring System Video Analytics – Vehicle Counting Reclamation/ Recycle / Reuse Online Water Treatment Control System

Smart Technology with in WHA Industrial Estates

20,000 Rai

T

• tal Project In

Nghe An, Vietnam

1st

Industrial Estate in Vietnam

1,000 Rai

Developed by

2019

Out of 3,200 Rai total Phase 1

12 years

Tax Exemption

+ 5 years

50% Tax Reduction

25

Industrial Estate Business– Key Deliverables

Business and Financing Plan - 2019

Key Deliverables

26

Industrial Estate Business - Outlook

Business and Financing Plan - 2019

The Implementation Progress of EEC Development has been Witnessed, EEC Act was effective since 15 May 2018

Source: EEC in Action by Dr. Kanit Sangsubhan, Bangkok Post

INTERMEDIATE (2019–21)

• Construction of double-track

rail network (Laem Chabang- Map Ta Phut-Rayong- Chantaburi-Trat)

• Construction of second runway

at U-tapao

• PPP air cargo at U-tapao, phase 1
• PPP free—trade zone at U-

tapao

• Motorway (Laem Chabang-

Prachinburi) 62 projects THB 414.4 bn LONG-TERM (2022 onward)

• Rail network linking EEC-Dawei-

Cambodia

• Inland container depots at

Chachoengsao

• PPP air cargo at U-tapao, phase 2
• Motorway (Chonburi-klang)
• Expand road networks

7 projects THB 252.9 bn

3 PHASES OF INFRASTRUCTURE DEVELOPMENT IN EEC

URGENT (2017 – 2018)

• PPP MRO at U-Tapao airport,

phase1

• PPP High-speed train
• U-Tapao railway station
• PPP third passenger terminal at U-

Tapao

• PPP Laem Chabang deep-sea port,

phase 3

• PPP Map Ta Phut deep sea port,

phase 3

• Motorway (Pattaya- Map Ta phut)
• Ferry Terminal

99 projects THB 292.9 bn

27

Industrial Estate Business - Outlook

Business and Financing Plan - 2019

US - China Trade tension creates global negative economic impact, but results in

• pportunities for well-positioned WHA group

Source: /1 2019 Thailand GDP Growth forecast by SCB EIC (January 2019) /2 2019 Global GDP growth forecast by World Bank (8 January 2019)

Diversion of investment and production base as well as trade flows to other competitive countries Escalation and prolonged Trade War hits investors’ confidence and negatively affects Global Growth

41%

Industrial Land Sales (in Rai) come from CHINA in 2018

Recent surge in CHINESE INVESTMENTS already

• bserved

28

Utilities & Power Business - Strategy

Business and Financing Plan - 2019

Market Expansion Product Innovation Capture Vietnam Opportunity Power Portfolio Growth Innovative Energy Solution

29

Utilities Business - Strategy

Business and Financing Plan - 2019 Market Expansion

New WHA IEs Non-WHA IEs

570

Installed Equity MW

Product Innovation

Wastewater Reclamation, RO Water, Demineralized Water, Smart Water Solution, Wastewater Pretreatment

Capture Vietnam Opportunity

Raw Water, Industrial Water, Municipal Water, Wastewater

Growing Beyond the Core

Target Sale Volume of Utilities : 120 mm m3 per year Improving GPM by change in product mix and initiative of RO technology to supplant the processed water

Key Deliverables

Growing water sales volume with +3

new up- coming WHA IEs

Leverage IE customer base to offer innovative products 3,650,000 m3/yr Capacity RECLAMATION Located in WHA EIE 2,190,000 m3/yr Capacity DEMINERALIZED WATER To serve for a Well-know Power Plant Smart Water Solution Integrating IoT on water meter (First phase in WHA EIE) Sourcing potential M&A opportunities in CLMV, especially Vietnam Target STRATEGIC LOCATIONS with growing populations, industrial users and abundant water resources Partner with Industrial Estate Developers to provide Utility Solution

30

Power Business - Strategy

Business and Financing Plan - 2019 Power Portfolio Growth

Renewable Energy in Focus

570

Installed Equity MW

Innovative Energy Solution

Smart Grid, Energy Storage System, Captive Gas Power Plant, Floating Solar

Energy Storage Smart grid Controller Utility Grid Industrial Users Conventional Generation Renewable Generation

+49

Equity Megawatt

Leverage on WHA customers’ roofs to create track record and project references for business expansion to non-WHA Roofs Study and prepare for future

• f electricity

trend (EV, ESS) to make optimal investment

Waste-to-Energy Project COD in Q4’2019 30 Equity MW from GNLL2 COD in Jan 2019

Capture Vietnam Opportunity Solar

Specializing in Energy for Industrial End Users

Explore potential Solar power projects in Vietnam

From 521 Equity MW to achieve 570 Equity MW Additional solar rooftop is targeted to be another 15 MW

Key Deliverables

31

Digital Platform Business – Strategy

Business and Financing Plan - 2019

Smart Eco IE Smart Warehouse

Strengthening Competitiveness WHA Platform For Digital Transformation Expand Customer Coverage on Data Center and FTTx

Leverage from WHA Group’s customers base to capture captive demand Attract customers through cross selling with existing services (network infrastructure, DC & Backup and System Integrators)

ENERGY STORAGE BIG DATA AI IOT SMART GRID

Smart Utility Smart Grid

80% year-end Occupancy Rate of Data Center 9 FTTx in all WHA Industrial Development IEs

Key Deliverables

32

Key Significant Events – P&L Recognition in Deferred Revenue of Sale of Office to WHABT

Business and Financing Plan - 2019

33

4Q2015 2016 – 2018 1Q2019

Accounting Records

• Dr. Cash

(Asset)

• Cr. Deferred Revenue

(Liabilities)

• Dr. OPEX
• Dr. Depreciation
• Cr. Rental Revenue
• Dr. Depreciation
• Dr. Undertaking Expense
• Cr. Cash
• Dr. Deferred Revenue
• Cr. Sale of IP

(P&L) On 6 November 2015, the Company sold assets to WHABT and have undertaken in guaranteeing minimum EBITDA of the REIT. Hence, their significant risk and reward were not transferred to the buyer, so the Company recorded the transaction as deferred revenue. Due to the assets owned by WHA, the Company still recognized the rental income, including depreciation and any expense incurred by the assets as well. During the period 2019, the Company has reconsidered the remaining guarantee EBITDA and found that existing risk and reward were insignificant. Therefore, the Company has reversed deferred revenue to P&L statement.

Events

Investment properties (offices) – still in B/S !! Periodic Reduction in Deferred Revenue Ongoing Rental Record of Revenue and Expense Reversal of Deferred Revenue into Sale (P&L)

Key Significant Events

• Reversal of deferred revenue, amounting THB 2,101

mm to be recognized as sale of IP after reconsideration of remaining guarantee EBITDA. Upcoming Asset Monetization to REITs Recent Bond Issuance Recognition of Deferred Revenue (WHABT) 1 2 3

Business and Financing Plan - 2019

• Recent bond issuance in Apr, amounting THB 3,500

mm with 3.16% average cost of fund and average tenor of 4.03 years

• Another planned bond issuance up to THB 3,500 mm

mainly for refinancing

34

4

• Additional credit facilities both short-term and

long-term from financial institutions to be THB 20 bn on aggregate to lower cost of funding and flexible cash flow management Additional Credit Facilities Upcoming Asset Monetization

• Monetize BTS-warehouse/factory and Distribution

Center to WHART area of c. 157,000 sq.m.

• Monetize RBF/RBW to HREIT c. 30,000 sq.m.

29% 71% 52% 48% 42% 22% 36% 1%

Exponential Revenue and Share of Profits Growth

50% 29% 19% 1%

2019 Revenue and Share of Profits

2019F

Expected approx. 70% GROWTH

Business and Financing Plan - 2019 2018A 2018A Revenue by Hub

Recurring

vs. Non Recurring

Logistics Industrial Development Utilities & Power Digital Platform Recurring Non Recurring

2019F

THB 11,622 mm THB 11,622 mm

35

2019 Investment Plan and Leverage Level

Investment Plan Estimated Leverage

9,900

MB

1.2x 1.2x

1.1x

0.9x 0.9x 0.8x

2017A 2018A 2019F 2020F 2021F 2022F

Interest-bearing Debt/Equity Target < 1.0x

Target Interest-bearing Debt/Equity < 1.0X Target Interest-bearing Debt/EBITDA < 4.5X Target

• Given stronger profitability and lower financial loan, the group will

have healthier financial position with decreasing trend of the leverage ratio

Unit : THB bn

Business and Financing Plan - 2019

THB 44 billion CAPEX for the year 2018-2022

Logistics Industrial Estate Utilities and Power Digital

38% 38% 23% 1%

2019F

37% 36% 26% 1%

2018A

4.8 9.8 8.5 10.5 10.8 2018A 2019F 2020F 2021F 2022F

36

608 501 510 525 1,118 1,025 60% 47%

2017A 2018A

133 122 123 154 256 276 51% 49%

1Q2018A 1Q2019A 81 64 71 72 152 136 1Q2018A 1Q2019A 421 461 549 400 970 861 2017A 2018A 2,947 1,317 463 3,343 2,125 1,689

6,290 5,594 47% 45%

2 0 1 7 A 2 0 1 8 A

190 2,101 416 421 1,259

1,865 2,522 43% 14%

1 Q 2 0 1 8 A 1 Q 2 0 1 9 A

Profitability by Business

Financial Performance

37

Gross profit margin on consolidated financial statement is different from that on operation financial statement (genuine performance) due to the effect

• f PPA adjustment after acquisition

RENTAL PROPERTY BUSINESS SALE OF PROPERTIES BUSINESS

Remark: Other revenues consist of property and REIT management fee, acquisition fee, dividend income, share of profit from JV, revenue from digital business and other income

Unit: THB mm

OTHER REVENUES

• The decrease in other revenues in Q1’19 was mainly due to decreasing in revenue

from digital business .

• For Q1’19, the GPM dropped from 43% to 14% due to impact particularly from sale
• f Investment Properties to HREIT in Q1 of 2018, while the GPM from recognition
• f deferred revenue from asset monetization to WHABT which was divested in

2015 was also low.

• The GPM from Industrial Development Land sales in Q1’19 stood at 44%

(Reported Basis).

• The decrease in GPM from 51% in Q1’18 to 49% in Q1’19, resulting

from change in product mix between BTS and RBF/RBW.

Real GPM before PPA of 1Q2019 : 49% Real GPM before PPA of Q12019: 14% (before PPA only Industrial Development Land sales : 42%)

Logistics Industrial Development

Logistics Industrial Development Margin

Logistics Industrial Development 8 A 8 Share of Profit from JV's Asset Monetization Asset Monetization to HREIT Margin

Realized Revenue from asset sold to WHABT Margin Share of Profit from JV's Asset Monetization Asset Monetization to HREIT Logistics Industrial Development

1,353 2,062 574 55 1,927 2,046 (71) 2017A 2018A 1,939 2,070 136 27 43% 43%

2017A 2018A

515 533 26 43% 47%

1Q2018A 1Q2019A

Profitability by Business (Con’t)

Gross profit margin on consolidated financial statement is different from that on operation financial statement (genuine performance) due to the effect of PPA adjustment after acquisition

Financial Performance

Remark: Power & Utility Businesses were full year performance comparing to WHAUP, which was partial consolidation * Include Insurance Claim

38

UTILITIES BUSINESS POWER BUSINESS

Unit: THB mm

• The increase in sales and service income from utilities

business came from the increase in sale of all type of water including industrial water raw water and wastewater treatment.

• The GPM of Utilities sale increased to 47% as a result of

increase of excessive charge in Q1’19.

• However the GPM excluding excessive charge also increased

from 43% in Q1’18 to 45% Q1’19 due mainly to the higher proportion from industrial water sale as well as the initiative

• f RO technology.

Unit: THB mm

Real GPM before PPA of 1Q2019 : 50% 2,075 2,096 515 559 Utility Excessive Charge Margin

Nomalized Share of Profit Impact From FX Write-Off Tax Payment One-Off Item

• Power business performance in Q1’19 was lower compared to that of

Q1’18 due to a scheduled major maintenance of GHECO-ONE during in Q1’19, coupled with accounting impact from TFRS15 new accounting standard as well as a decease in gain from FX in Q1’19 compared to the same period of last year.

• Q1’19 was considered a low base quarter as GHECO ONE operated only 51

days due to Planned Major Maintenance.

408 308 251 94 659 310 (92) 1Q2018A 1Q2019A

Rental property 135 11% Sale of Industrial Estates 187 16% Sale of IP's 161 14% Utilities 264 22% Power 310 26% Others 131 11% Rental property 276 7% Sale of Industrial Estates 421 11% Sale of IP's 2,101 55% Utilities 559 15% Power 310 8% Others 136 4%

Revenue and Gross Profit Breakdown

1Q2019 GROSS PROFIT BREAKDOWN 1Q2019 REVENUE BREAKDOWN

Unit: THB mm Unit: THB mm

TOTAL THB 3,803 mm TOTAL THB 1,188 mm

Remark: Share of profit from JV’s and Associates included Remark: Share of profit from JV’s and Associates included Gross profits are based on consolidated financial statements and thus affected by PPA adjustment

Recurring vs Non-Recurring = 34:66 Recurring vs Non-Recurring = 71:29

Financial Performance

Remark: Power & Utility Businesses were full-year performance, comparing to WHAUP, which was partial consolidation

39

2,488 3,979 2,844 13,740 13,364 13,448 835

• 892

12,339 14,317 12,610 9,422 10,076 7,814 21,694 21,694 21,694 13,100 14,915 15,813

73,619 78,345 75,115 2017 2018 1Q2019

Others Intangible Assets and Goodwills Investment Properties Investment in Associates Non-Current Assets Held-for-Sale Cost of Real Estate Developments Cash & ST investment 45,086 47,331 44,795 34,398 36,380 35,565 28,533 31,014 30,320 1.58 1.53 1.48 1.21 1.17 1.17 1.12 1.04 1.08

• 1

2017 2018 1Q2019 Liability IBD Equity D/E IBD/E Net IBD/E

Financial Position

Unit: THB mm

CAPITAL STRUCTURE ASSETS

Unit: THB mm

RETURN ON INVESTMENT

• On the overall basis, the total assets decreased to THB 75,115 mm in Q1'19

mainly from the decrease in investment in associates as a result of retroactive adjustment from TFRS15 from Gheco-One project.

• In addition, to reflect the identification of asset sale to WHART, we have

also reclassified the assets to be sold to WHART in the item of non current asset held for sale amounting THB 892 mm.

Financial Performance

Remark: ROE = Trailing 12 months net Income attributable to parent / Average total equity attributable to owners of the parent ROA = Trailing 12 months net income / Average total asset ROIC = Trailing 12 months NOPAT / Average Invested Capital (IBD and Equity)

40

14.00% 11.08% 9.37% 8.59% 7.76% 6.53% 5.17% 5.10% 4.18% 2017 2018 1Q2019 ROE ROIC ROA

• The total shareholders’ equity decreased by THB 694 mm in Q1'19

due mainly to retroactive adjustment from TFRS15 from Gheco- One project amounting THB 1,998 mm.

Bond 10,138 mm 100%

Bond 34,573 mm 98% B/E & P/N 800 mm 2%

Bond 7,638 mm 100% Bond 17,935 mm 96% B/E & P/N 800 mm 4% Bond 9,000 mm 100%

Debt Profile

As of March 2019

Unit: THB mm

Financial Performance

Weighted Average Interest Rate

3.91%

WHA HA WHA HA I ID WHA HAUP

Weighted Average Interest Rate

3.61%

Weighted Average Interest Rate

5.52%

Weighted Average Interest Rate

3.17%

41

As of March 2018

Unit: THB mm

Weighted Average Interest Rate

4.35%

WHA HA WHA HA I ID WHA HAUP

Weighted Average Interest Rate

3.86%

Weighted Average Interest Rate

5.52%

Weighted Average Interest Rate

3.82%

B/E & P/N 1,390 4% Bond 28,133 84% Term Loan 3,999 12%

Bond 4,000 mm 50% Term Loan 3,999 mm Bond 13,995 mm 91% B/E & P/N 1,390 mm 9%

2,855 5,538 4,000 2,554 1,428 1,280 2,380 400 800 638 2,000 1,000 2,500 1,500

• 4,000

2,390 1,290 1,320

• 4,293

9,538 8,390 3,554 2,718 3,780 5,200 400

2019 2020 2021 2022 2023 2024 2025 2026

WHA: Bond WHA: B/E & P/N WHAID: Bond WHAID: B/E & P/N WHAUP: Bond

Debt Maturity Profile & Finance Cost

DEBT SERVICE FOR EACH PERIOD

Unit: THB mm

FINANCE COST

Financial Performance

Unit: THB mm As of 30 April 2019

42

Remark : (1) THB 2,500 mm bond which will mature in 2024 has embedded call option from the year 2019 Remark : (2) THB 1,000 mm bond and THB 1,500 mm bond which will mature in 2022 and 2025 respectively, have embedded call option from the year 2020Remark :

313 278 1Q2018 1Q2019

Appendix

43

5-Year Aspirations

2020 Goals Recurring Income

• c. 50%

NPAT Growth 10%-15% p.a. ROE 18%-20% Gearing Ratio <1.0x Growth Driver

• Consolidate and Synergize 4

Business Hubs together with Utilizing Our Established Platform

• Maximize Asset Value and

Productivity Expand through Strategic Investment and Acquisition Expand to Strategic Countries, especially CLMVI countries Measurement

• Recurring Income c. 50%
• Improvement of Margin
• Increase revenue and net profit from overseas

Appendix

44

Investment in Vietnam – Nghe An Project Overview

Tentative Project Timeline

 Received IRC (Investment Registration Certificate) from the Vietnamese government  Area granted: 498 hectares (c. 3,100 rais)  Submitted construction drawing/detail design

Q4’18

 Granted EIA approval for the 1st phase of 498 ha.  Successful relocation by Vietnam government  Started construction mobilization

1H’18 Q3’18

Appendix

2017

 Continue developing infrastructure and facilities  Land available for early customer at the end of quarter  Land grading and road work including dyke and drainage work

IRC Master Plan Approval EIA Land Relocation Construction Key Development

45

Business Overview – I. Industrial Estates Vietnam

Key Facts

So urc e : Ng he An Ce nte r fo r I nve stme nt Pro mo tio n a nd De ve lo p me nt Co nsulta nc y

Nghe An Project Overview Highly Populated

(3.2 mm people)

Largest Province

By land area (16,000 km2)

#1 #4

Labor Force 1.9mm

10.5%

Provincial GDP Growth

(higher than nation’s average)

WHA Hemaraj IZ 1 and 2 in Dong Nam Economic Zone

288 km South of Hanoi

46

Total Land Area of 498 ha in Phase 1

Business Overview – I. Industrial Estates Vietnam

PHASE 1 160 Ha Industrial 2019

Corporate Overview

47

WHA Industrial Zone 2 – Nghe An Tho Loc Vinh City

35 km 10 km 3 km 8 km

WHA Industrial Zone 1 – Nghe An Nam Cam

WHA Industrial Zone – Nghe An’s trade connectivity

So urc e : Ng he An Ce nte r fo r I nve stme nt Pro mo tio n a nd De ve lo p me nt Co nsulta nc y, Go o g le Ma p

Dong Hoi Seaport (2020) Cua Lo Seaport Cua Lo International Deep Seaport

Airways

Vinh Airport

• Capacity: 3 million passenger per

year

Seaports

Cua Lo Seaport

• Distance:15km from Vinh City
• Capacity: 20,000 DWT*

Cua Lo International Deep Seaport

• Capacity: 70,000 DWT*

*Re ma rk: DWT sta nd s fo r De a d we ig ht T

• nna g e

Business Overview – I. Industrial Estates Vietnam

Roadways

• Highway 1A
• National Road 15
• Ho Chi Minh Highway
• National Road 46
• National Road 48
• National Road 7

Future Route

• Highway 8
• North-South railway connecting

Hanoi to Ho Chi Minh City

• Vinh Grade 1 railway station: 3rd

largest passenger and cargo transit in Vietnam

Railways 48

Shareholding Information / Board of Directors

Shareholding Information/1 Top 10 Shareholder/1 Shareholder

• No. of Share/3

% 1) WHA Holding Co., Ltd. 3,629,083,491 25.2% 2) Ms. Jareeporn Jarukornsakul 1,471,761,769 10.2% 3) Mr. Somyos Anantaprayoon 924,091,714 6.4% 4) CREDIT SUISSE AG, SINGAPORE BRANCH 321,473,360 2.2% 5) UBS AG SINGAPORE BRANCH 62,545,704 0,4% 6) Ms. Chatchamon Anantaprayoon 46,029,305 0,3% 7) STATE STREET BANK EUROPE LIMITED 1,359,913,536 9.5% 8) Thai NVDR Co., Ltd. 638,093,378 4.4% 9) BBLAM – BTP 301,703,500 2.1% 10) BBLAM – B-LTF 259,134,600 1.8% 11) SOUTH EAST ASIA UK (TYPE C) NOMINEES LIMITED 208,740,501 1.5% 12) Mr. Sanchai Suksomchewin 155,600,000 1.1%

Major Shareholder /2

Board of Directors and Management

Appendix

Remarks:

• Mr. Jakrit Chaisanit

• Dr. Kritsana Sukboonyasatit

• Dr. Somsak Pratomsrimek

• Ms. Jareeporn Jarukornsakul

• Mr. David Richard Nardone

• Mr. Vivat Jiratikarnsakul

• Mr. Arttavit Chalermsaphayakorn

• Mr. Narong Kritchanchai

• Mr. Krailuck Asawachatroj

• Mr. Somsak Boonchoyreungchai

• Dr. Pichit Akrathit

Independent Directors

• Dr. Apichai Boontherawara

Board of Directors and Management

49

Selected Industrial Customers

Appendix

Selected Logistics Customers

Appendix

CONSUMER GOODS DANGEROUS GOODS FOOD CHAIN AND PET FOOD HEALTHCARE AUTOMOTIVE THIRD PARTY LOGISTICS (3PL) AIRCRAFT MANUFACTURING E-COMMERCE

50

Selected Industrial Customers

Appendix

51