Presentation including
2018 Results and 2019 Business Plan OPPORTUNITY DAY
OPPORTUNITY DAY Disclaimer The information (Confidential - - PowerPoint PPT Presentation
Presentation including 2018 Results and 2019 Business Plan OPPORTUNITY DAY Disclaimer The information (Confidential Information) contained in this presentation is strictly confidential and is provided by Ananda Development Public Company
Presentation including
2018 Results and 2019 Business Plan OPPORTUNITY DAY
2
The information (“Confidential Information”) contained in this presentation is strictly confidential and is provided by Ananda Development Public Company Limited (the “Company”) to you solely for your reference. Neither this presentation nor any part thereof may be (i) used or relied upon by any other party or for any other purpose; (ii) copied, photocopied, duplicated or otherwise reproduced in any form or by any means; or (iii) redistributed, passed on or otherwise disseminated, to any other person either in your organization or elsewhere, without the prior written consent of the Company. By attending this presentation, participants agree not to remove this document, or any materials provided in connection herewith, from the conference room where such documents are provided without express consent from the Company. Although care has been taken to ensure that the Confidential Information in this presentation is accurate, and that the opinions expressed are fair and reasonable, the Confidential Information is subject to change without notice, its accuracy is not guaranteed, has not been independently verified and it may not contain all material information concerning the Company. None of the Company, or any of their respective members, directors, officers, employees or affiliates nor any other person accepts any liability (in negligence, or otherwise) whatsoever for any loss howsoever arising from any use of this presentation or its contents or otherwise arising in connection therewith. This presentation is for information purposes only and does not constitute or form part of any offer or invitation for sale or subscription of or solicitation or invitation of any offer to or recommendation to buy or subscribe for any securities, nor shall it or any part of it form the basis of or be relied on in connection with any contract, commitment or investment decision in relation thereto in Thailand, United States or any other jurisdiction. Any such purchase should be made solely on the basis of the information contained in the announcements to the Stock Exchange of Thailand relating to such securities. No reliance may be placed for any purposes whatsoever on the information set forth in this presentation or on its completeness. This presentation contains projections and forward‐looking statements that reflect the Company's current views with respect to future events and financial performance. These views are based on a number of estimates and current assumptions which are subject to business, economic and competitive uncertainties and contingencies as well as various risks and these may change over time and in many cases are outside the control of the
forecasted and projected or in the forward‐looking statements.
Disclaimer
3
2018 Performance: Built to Last with Discipline
2018 2017 2016 2015 2014 2013 2012 2011 2010 2009 2008
1999
Global Financial Crisis Bangkok Flooding Thailand Coup Mourning Period Our 1st Day IPO
5,209
TRANSFERS
JV with Mitsui
2006
JV with Pramerica Political Unrest Trade War Looming
2013 2014 2015 2016 2017 2018 1,328 2,419 2013 2014 2015 2016 2017 2018 15,098 33,171 2013 2014 2015 2016 2017 2018 12,077 18,547 4
2018 Performance: Deliver All Time High Transfers and Profits
NET PROFIT ANANDA SHARE IN TRANSFERS TRANSFERS
%
GROWTH
% YoY
GROWTH
YoY
GROWTH
% YoY
Note : Net profit included non-controlling interests of the subsidiaries
5
Dividend: Increase Investment Return to Shareholders
IPO
2012 2013 2014 2015 2016 2017 2018
DIVIDEND PER SHARE (BAHT)
0.05 0.098 0.10 0.1250 0.1275
6
Y2017 Y2018 % Y-o-Y
M Baht % M Baht % Total revenue 12,950 100% 10,555 100% (18%)
Revenue from sale of real estate 8,932 69% 5,905 56% (34%) Project management and commission income 2,061 16% 2,080 20% 1% Construction income 1,208 9% 1,674 16% 39% Other incomes 749 6% 896 8% 20%
Gross profit 4,898 38% 3,605 34% (26%)
Sale of real estate 2,865 32% 1,644 28% (43%) Project management and commission 1,324 64% 1,176 57% (11%) Construction 102 8% 140 8% 37% Others 606 N/A 645 N/A 6%
SG&A 2,570 20% 2,912 28% 13%
Selling expenses 1,112 9% 947 9% (15%) Administrative expenses 1,458 11% 1,965 19% 35%
Other expenses 0% 173 2% N/A Share of Profit (Loss) (342) (3%) 2,341 22% N/A EBIT 1,987 15% 2,861 27% 44% Interest expenses 285 2% 368 3% 29% Net Profit (Loss) 1,328 10% 2,398 23% 82% Profit attributable to non-controlling interests 0% 22 0% N/A Profit attributable to equity holders of the company 1,328 10% 2,419 23% 82% Earnings per share (baht)
0.34 0.65
Profitability: Investment from Joint Ventures was a Key to Grow
7
Joint Venture Project Performance
Unit: M Baht
GROWTH YOY
342%
Transfers from JV Share Profit from JV %Gross Profit Margin
Profitability: Investment from Joint Ventures was a Key to Grow
33%
37%
17%
22%
%Net Profit Margin
6,166
27,267
2,341
ALL TIME HIGH 2017 2018
8
Productivity: Improving Efficiency for the Group
0% 2% 4% 6% 8% 10% 12% 14% 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000
2015 2016 2017 2018
12% 7%
Transfers & Other Incomes (MB)
%Admin Expenses to Transfers & Other Incomes Decreased in 4 Years
Note : 1 including Joint Venture projects
9
Y2017 Y2018 % Y-o-Y
M Baht M Baht
Cash balance and equivalent
2,063 4,914 138%
Assets
29,904 41,573 39%
Interest bearing debts
12,361 18,396 49%
Liabilities
16,444 23,584 43%
Shareholders' equity
13,460 17,989 34%
D/E ratio (times)
1.22 1.31 7%
Net IBDE ratio (times)
0.77 0.75 (2%)
Balance Sheet: Business Growth with Discipline
10
Balance Sheet: Business Growth with Discipline
1.1
0.5 1 1.5
Note : Net Interest bearing debt including JV debt to equity
2014 2015 2016 2017 2018
Bond Covenants
2.5 Times
%
HOUSING
%
CONDOMINIUM
11
2013 2014 2015 2016 2017 2018
15,098 33,171
INCREASING TRANSFERS Transfer Performance 2018: Transfers were All Time High
Condo 1,342 993 878 435 3,647 Housing 511 542 597 608 2,258 Ananda F/S 1,853 1,534 1,475 1,043 5,905 Ananda Share in JV 1,014 2,665 4,448 4,516 12,643 Partner Share in JV 974 2,560 5,914 5,117 14,624 Ananda Share in Transfers 2,866 4,199 5,923 5,559 18,547 Total (M Baht) 3,840 6,759 11,837 10,736
33,171
Transfer
1Q18 3Q18 4Q18
2018
2Q18
12
Transfer Begins
1Q18 2Q18 4Q18 3Q18 NEW CONDO PROJECTS THAT COMPLETE THIS YEAR
OF TRANSFERS COMING FROM
%
Transfer Performance 2018: 10 New Condo Completed Projects were Transferred
13
10% 19%
2015 2016 2017 2018
INCREASING INTERNATIONAL TRANSFERS Transfer Performance 2018: International Transfers were All Time High
GROWTH
% YoY
UNITS 94 % GROWTH YoY
%
%
14
Transfer Performance 2018: Our Customers were Cashed Up
FY2018 CASH
%
FY2018 MORTGAGE
%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 2015 2016 2017 2018
DOMESTIC
24 %
INTERNATIONAL
19 %
15
Presales Performance 2018: International Sales were Remaining Strong
1,235 1,256 1,730 3,111 2013 2014 2015 2016 2017 2018
21,364 MILLION BAHT
%
10,119 MILLION BAHT
%
9,775 10,119
ALL TIME HIGH INTERNATIONAL SALES
16
CONDOMINIUM 5,848 9,793 7,038 5,193 27,872 HOUSING 834 825 1,144 807 3,611 TOTAL (MILLION BAHT) 6,685 10,618 8,182 6,000
31,483
PRESALES
1Q18A 2Q18 3Q18 4Q18
2018
CONDOMINIUM
%
HOUSING
%
Presales Performance 2018
17
2013 2014 2015 2016 2017 2018 42,450 26,756
Launch Performance 2018: All 12 Projects had been Launched as Promised
%
HOUSING
%
Tick tock cycles
CONDOMINIUM
18
MILLION BAHT
VALUE TO MID-END
%
SELLING PRICES BELOW 150,000 BAHT/SQM
MILLION BAHT
VALUE TO MID-END
%
SELLING PRICES BELOW 7 MB BAHT/UNIT
MID TO UPPER MID-END
%
SELLING PRICES ABOVE 150,000 BAHT/SQM
MID TO UPPER MID-END
%
SELLING PRICES ABOVE 7 MB BAHT/UNIT
Launch Performance 2018: Almost 80% of Condo Launches were Value to Mid-end
19
BEGINS
2Q18 3Q18
2018
JOINT VENTURE PROJECTS
Condo 4,325 6,822 5,123 5,582 21,854 Housing
3,684 818 4,902 TOTAL (MILLION BAHT) 4,325 7,223 8,807 6,400
26,756
2 (1JV) 1 JV 2 JVs 1 JV
6 (5 JVs)
4 1
6
1Q18 4Q18
Launch Performance 2018: All 12 Projects had been Launched as Promised
2019 2020 2021 2,703
8,728 6,101 3,667 9,432 7,046 2,063 420 Ananda's Backlog - Condo Ananda's Backlog Gn JV - Condo Partner's Share Ananda's Backlog - HousGng
20
Backlog 41 Bn Baht 59% of 2019 transfers
secured by backlog
21,284 MILLION BAHT 13,148 MILLION BAHT 6,630 MILLION BAHT Backlog: Almost 60% of 2019 Transfers were Secured
Updated: Dec 31, 2018
21
%
Sold Within 3 Years of launch
Updated: Dec 31, 2018 Unit: M Baht
Condo Sales Rate: 90% of Unsold Inventories Cleared within 3 Years of Launch
11,403 19,779 3,523 10,503 16,521 4,149 1 year 2 years 3 years Backlog Unsold Inventories
22
2018 Summary: Business Growth with Discipline
❖ Transfers grew 120% YoY ❖ Net profit grew 82% YoY ❖ Net profit margin rose from 10% to 23% YoY ❖ Net IBDE ratio including JV at 1.1 below bond covenants at 2.5 times ❖ All time high transfers ❖ All time high international transfers ❖ All time high international sales ❖ All time high net profit ❖ All time high dividend payment
How can we sustain the growth
24
2019 Business Plan: Our Capital Cycles Drove Higher Launches
2013 2014 2015 2016 2017 2018 2019 26,756 38,000 2013 2014 2015 2016 2017 2018 2019 31,483 36,000
TRANSFERS PRESALES LAUNCHES
%
GROWTH
% 2018
GROWTH
2018
2013 2014 2015 2016 2017 2018 2019 33,171 36,000
GROWTH
% 2018
2013 2014 2015 2016 2017 2018 2019 25
8 PROJECTS
CONDOMINIUM
%
2 PROJECTS
HOUSING
%
JOINT VENTURE PROJECTS
97% CONDO LAUNCH
38,000 26,756
GROWTH
%
FROM 2018
Launch Target 2019: Going Forward in Full Force where the Opportunities are
26
MILLION BAHT
VALUE TO MID-END
%
SELLING PRICES BELOW 150,000 BAHT/SQM
100% SECURED CONDO LOCATIONS
MILLION BAHT
SECURED HOUSING LOCATIONS
VALUE TO MID-END
%
SELLING PRICES STARTING BELOW 7 MB/UNIT
MID TO UPPER MID-END
%
SELLING PRICES ABOVE 150,000 BAHT/SQM
100% Launch Target 2019: Move toward Upper Mid-end Segment for Better Prospects
27
BEGINS
1Q19 2Q19 4Q19 3Q19
2019
JOINT VENTURE PROJECTS
Condo
16,346 8,437 35,260 Housing
TOTAL (MILLION BAHT)
16,346 8,437
38,000
4 JVs 2 JVs
8 (7 JVs)
Launch Target 2019: Going Forward in Full Force where the Opportunities are
28
2013 2014 2015 2016 2017 2018 2019 29
CONDOMINIUM
%
HOUSING
%
CONDOMINIUM 3,263 6,334 11,224 11,305 32,126 HOUSING 776 921 1,068 1,109 3,874 TOTAL (MILLION BAHT) 4,039 7,255 12,292 12,414
36,000
PRESALES
1Q19 2Q19 4Q19 3Q19
2019
36,000 31,483
GROWTH
%
FROM 2018
Presales Target 2019: Maintain High Level of Presales for Future Transfers
30
Condo
410 1,604 2,486 1,483 5,983
Housing
540 716 1,086 1,318 3,660
Ananda F/S
950 2,320 3,572 2,801 9,643
Ananda Share in JV
1,407 2,298 3,823 5,408 12,936
Partner Share in JV
1,694 2,443 3,677 5,607 13,421
Ananda Share in Transfers
2,357 4,618 7,395 8,209 22,579
Total (M Baht)
4,050 7,061 11,072 13,817 36,000
Transfer
1Q19 2Q19 4Q19 3Q19
2019
CONDOMINIUM
%
HOUSING
%
GROWTH
% 2018
Transfer Target 2019: Target a Moderate Growth but yet with Another High Record
31
Transfer Begins
1Q19 2Q19 4Q19 3Q19 NEW CONDO PROJECTS THAT COMPLETE THIS YEAR
OF TRANSFERS COMING FROM
%
NEW PROJECT AT SUKHUMVIT 31
Transfer Target 2019: 10 Condo Projects will be ready to Transfer within This Year
32
2013 2014 2015 2016
Project
Year
2017 9 2018
6,800 19,200 19,600 24,200 25,200 33,000
GDV
29,600
2019
CONDO PROJECTS SERVICED APARTMENTS
PROJECTS AS OF DECEMBER 2019
Number One in JV in 2019: We Continue to Build a Stronger Partnership with MF.
LYF SUKHUMVIT 8
33
SOMERSET RAMA 9 ASCOTT THONGLOR ASCOTT EMBASSY SATHORN NEW PROJECT IN PATTAYA
Recurring Income: Continued Growth of Our Portfolio
34
Recurring Income: Accumulating Revenue Contribution
2017
First Venture into Serviced Apartments Business Continuing expansion in key destinations through diversified product classes
2022
MILLION BAHT
MILLION BAHT PER ANNUM
35
Note : 1 including Joint Venture with Mitsui Fudosan
Financial Target in 2019: Our Capital Cycles Drove Higher Launches
Item 2013 Actual 2014 Actual 2015 Actual 2016 Actual 2017 Actual 2018 Actual 2019 Guidance
Transfers1 (M Baht) 8,808 9,678 9,598 15,866 15,098 33,171 34,000-38,000 Launches (M Baht) 34,213 14,954 34,828 20,693 42,450 26,756 36,000-40,000 Presales (M Baht) 21,083 20,898 26,235 25,175 34,920 31,483 34,000-38,000 Gross Profit Margin 39% 38% 40% 37% 37% 34% 31-34% Net Interest Bearing D / E, Year End 0.3 0.7 0.7 0.8 0.8 0.7 0.4-0.6 Net IBD/E including JV Debt 0.3 0.9 1.0 1.0 1.2 1.1 1.1-1.3 Land Purchases (M Baht) 4,343 10,284 5,258 7,252 15,600 10,000 6,000-8,000 Residential Construction Capex (M Baht) 1,516 6,429 8,052 8,899 14,957 15,410 11,000-12,000 Serviced Apartments Capex (M Baht)
1,529 2,500-3,000 Project Management Income (M Baht) 157 265 696 853 1,650 1,532 2,500-3,000
36
Key major risks to Thailand real estate market 1
Macro Prudential Policy
Effective 1 Apr 19 onwards, LTV will be decreased to 80% for;
2
Slowdown of Chinese demand
3
Interest Rate Hike & Household Debt
Negative growth rate of Chinese demand impacted from China – US trade war & Phuket issue Uptrend of interest rate which 2019 policy rate is expected to be 2.00 - 2.25% and high household debt
37
Balance Sheet: Business Growth with Discipline
1.2 0.5 1 1.5 2013 2014 2015 2016
Year
2017 2018
Bond Covenants
2019
2.5 Times
Note : Net Interest bearing debt including JV debt to equity
38
X
39
Contact:
Chief Financial Officer Ananda Development Public Company Limited chaiyuth@ananda.co.th +662 056 2222
Senior Investor Relations Manager Ananda Development Public Company Limited komsan@ananda.co.th +662 056 2222 Mobile: +66 819 16 3755
Thank You
Assistant Investor Relations Manager Ananda Development Public Company Limited katalee@ananda.co.th +662 056 2222 Mobile: +66 881 99 3832
40
Project Launched Type Value (M Baht) %Net Sold Backlog (M Baht) Unsold Inventory (M Baht) %Transfer
ADO: Atoll (Housing) Feb-13 Housing 3,221 38.6% 11 1,978 38.2% AD18: Ashton Asoke (JV) Sep-14 Condo 6,726 73.0% 667 1,813 63.1% AD17: Ideo Q Siam-Ratchathewi (JV) Sep-14 Condo 3,867 89.5% 294 407 81.9% AD16: Ideo Mobi Wongsawang-Interchange Sep-14 Condo 1,681 57.1% 38 721 56.1% AD18: Ashton Chula-Silom (JV) Mar-15 Condo 8,652 87.4% 17 1,091 78.3% AD17: Ashton Residence 41 Mar-15 Condo 1,945 55.8% 786 860 39.2% AD16: Unio Charan 3 Jun-15 Condo 2,118 100.0%
AD16: Arden 3 projects Jun-15 Housing 2,845 97.9% 8
AD17: Ideo Sukhumvit 115 Aug-15 Condo 2,805 100.0%
AD18: Q Chidlom (JV) Aug-15 Condo 3,095 80.5% 446 605 66.0% AD17: Ideo O2 (JV) Aug-15 Condo 5,141 81.6% 631 945 69.3% AD17: Ideo Mobi Bangsue Grand Interchange (JV) Nov-15 Condo 2,477 52.8% 37 1,169 51.3% AD18: Ashton Silom (JV) Nov-15 Condo 6,147 67.3% 2,734 2,007 22.9% AD17: Ideo Tha Phra Interchange (JV) Feb-16 Condo 2,777 60.6% 24 1,093 59.7% AD17: Unio Sukhumvit 72 Jul-16 Condo 1,557 98.4% 5 24 98.1% AD17: Unio Rama2-Thakham Jul-16 Condo 984 91.0% 25 89 88.4% AD18: Venio Sukhumvit 10 Sep-16 Condo 879 74.9%
74.9% AD18: Ideo Mobi Asoke (JV) Sep-16 Condo 3,352 81.7% 1,414 614 39.5% AD18: Ideo Sukhumvit 93 (JV) Oct-16 Condo 6,369 93.5% 902 414 79.3% AD18: Ideo Phaholyothin-Chatuchak (JV) Oct-16 Condo 2,600 81.1% 696 491 54.3% AD18: Ideo Mobi Sukhumvit 66 (JV) Oct-16 Condo 2,429 50.5% 457 1,203 31.6% AD18: Unio Ramkhamhaeng-Serithai Mar-17 Condo 898 61.9% 80 342 52.9% AD19: Unio H Tiwanon Mar-17 Condo 789 39.2% 310 479
Mar-17 Housing 1,666 63.7% 194 605 52.0% AD19: Ideo Q Victory (JV) Jun-17 Condo 3,208 97.5% 3,128 80
Jun-17 Condo 6,518 78.0% 5,083 1,434
Current Projects As Of December 2018
Note: JV = Joint Venture with Mitsui Fudosan
41
Updated: Dec 31, 2018
Project Launched Type Value (M Baht) % Net Sold Backlog (M Baht) Unsold Inventory (M Baht) %Transfer
AD20: Ideo Q Sukhumvit 36 (JV) Jun-17 Condo 4,319 55.9% 2,416 1,903
Jun-17 Condo 3,002 72.0% 2,162 840
Jun-17 Condo 5,111 45.6% 2,333 2,778
Jun-17 Housing 948 26.6% 17 696 24.8% AD17: Airi Rama 5-Ratchaphruek Jul-17 Housing 795 32.8% 11 534 31.5% AD18: Artale Kaset-Nawamin Aug-17 Housing 1,661 10.1% 52 1,494 7.0% AD17: Atoll Wongwaen-Lumlukka Sep-17 Housing 803 20.5% 4 639 20.0% AD19: Ideo Mobi Sukhumvit 40 Sep-17 Condo 2,075 42.0% 871 1,204
Sep-17 Condo 2,391 39.7% 949 1,441
Nov-17 Condo 3,441 44.9% 1,546 1,895
Nov-17 Condo 5,025 17.9% 901 4,124
Mar-18 Condo 2,577 58.4% 1,504 1,073
Mar-18 Condo 1,810 59.2% 1,071 739
Jun-18 Condo 6,815 84.1% 5,729 1,085
Jun-18 Housing 410 20.2% 14 327 16.7% AD20: Ideo Ratchada-Sutthisan (JV) Sep-18 Condo 1,722 39.4% 679 1,043
Sep-18 Condo 3,401 28.8% 978 2,423
Sep-18 Housing 889 9.2% 17 808 7.2% AD18: Unio Town Suanluang-Patthanakan Sep-18 Housing 630 10.0% 35 566 4.4% AD18: Airi Rama 2 Sep-18 Housing 1,023 2.1% 10 1,001 1.2% AD18: Airi Chaengwatthana Sep-18 Housing 1,144 2.1% 12 1,120 1.0% AD20: Ideo Mobi Sukhumvit Eastpoint (JV) Nov-18 Condo 5,582 25.8% 1,442 4,140
Dec-18 Housing 818 4.2% 35 783
16,853 420 10,609 Condo 124,284 40,641 40,791
Grand total
141,137 41,062 51,401
Note: JV = Joint Venture with Mitsui Fudosan
Current Projects As Of December 2018 (Cont.)
42
Supply and Sales Rate Trend: Location is still a Key to Inventory Liquidation
Source : SCB EIC & Ananda market intelligence
*Unsold units in BMR, updated Dec 2018
Price 1-3 M : 50,000 units Price >3 M : 31,000 units
Distance < 300M.
10,000 U, 25%
Distance > 300M.
40,000 U, 75%
Distance < 300M.
11,000 U, 35%
Distance > 300M.
20,000 U, 65% 35% 25%
Focus on condo nearby mass transit
43
Initial Take Up Rate: Location is still a Key to Inventory Liquidation
Source : AREA
59% 47% 58% 36% 64% 22% 53% 37% 51% 35% 55% 40% 0-300 m. > 1,000 m. 2013 2014 2015 2016 2017 2018