Presentation
2016 Q2 Results and 2016 Business Plan Opportunity Day
Presentation 2016 Q2 Results and 2016 Business Plan Opportunity Day - - PowerPoint PPT Presentation
Presentation 2016 Q2 Results and 2016 Business Plan Opportunity Day Disclaimer The information (Confidential Information) contained in this presentation is strictly confidential and is provided by Ananda Development Public Company Limited
2016 Q2 Results and 2016 Business Plan Opportunity Day
Disclaimer
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
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 Company. You are cautioned not to place undue reliance on these forward looking statements. No assurance can be given that future events will occur, that projections will be achieved, or that the Company's assumptions are correct. Such forward‐looking statements are not guarantees of future performance and accordingly, the actual results, financial condition, performance or achievements of the Company may differ materially from those forecasted and projected or in the forward‐looking statements.
3
4
2Q/2016 Financial Statements
2Q2016 1Q2016 2Q2015 % Q-o-Q % Y-o-Y
M Baht % M Baht % M Baht % Total revenue
2,889 100% 2,595 100% 1,541 100% 11% 87%
Revenue from sale of real estate
2,528 87% 2,179 84% 1,198 78% 16% 111%
Other incomes
361 13% 417 16% 343 22% (13%) 5%
Gross profit
996 35% 933 37% 621 42% 7% 60%
SG&A
589 20% 626 24% 441 29% (6%) 34%
Selling expenses
259 9% 223 9% 211 14% 16% 23%
Administrative expenses
331 11% 403 16% 229 15% (18%) 44%
Share of profit (Loss)
(91) (3%) (108) (4%) (124) (8%) N/A N/A
EBIT
370 13% 265 10% 134 9% 40% 176%
Interest expenses
75 3% 69 3% 70 5% 10% 7%
EBT
295 10% 196 8% 64 4% 50% 363%
Tax
85 22% 48 16% (8) N/A 79% N/A
Net profit (Loss)
210 7% 149 6% 72 5% 41% 191%
Earnings per share (baht)
0.05 0.04 0.02 41%
Q2/2016 Revenue beat our Analyst Consensus by 18% Q2/2016 Net Profit beat our Analyst Consensus by 40%
5
1H/2016 Financial Statements
1H2016 1H2015 % Y-o-Y
M Baht % M Baht % Total revenue
5,485 100% 2,935 100% 87%
Revenue from sale of real estate
4,707 86% 2,399 82% 96%
Other incomes
778 14% 536 18% 45%
Gross profit
1,929 36% 1,167 42% 65%
SG&A
1,215 22% 832 28% 46%
Selling expenses
482 9% 386 13% 25%
Administrative expenses
733 13% 445 15% 65%
Share of profit (Loss)
(199) (4%) (181) (6%) 10%
EBIT
635 12% 294 10% 116%
Interest expenses
144 3% 132 4% 9%
EBT
491 9% 163 6% 202%
Tax
133 19% 17 5% 670%
Net profit (Loss)
358 7% 146 5% 146%
Earnings per share (baht)
0.09 0.04
6
2Q/2016 Financial Highlight
2Q2016 1Q2016 2Q2015 % Q-o-Q % Y-o-Y
M Baht M Baht M Baht
Cash balance
2,757 2,835 1,788 (3%) 54%
Assets
22,717 21,855 19,949 4% 14%
Interest bearing debts
9,809 9,704 10,417 1% (6%)
Liabilities
12,904 12,997 13,117 (1%) (2%)
Shareholders' equity
9,813 8,858 6,832 11% 44%
D/E ratio (times)
1.3 1.5 1.9 (10%) (32%)
Net IBDE ratio (times)
0.7 0.8 1.3 (7%) (43%)
1Q16 (A) 2Q16 (F) 2Q16 (A) 3Q16 (F) 4Q16 (F) 1,581 1,399 1,822 1,537 3,636 598 634 706 605 781 2,211 2,124 Unit : Mil Baht Condo Housing Ananda Share in JV Mitsui Share in JV
7
7
2016 Transfer target between 15,000 and 16,000 M Baht
Quarter Quarter 1 Quarter 2 Quarter 2 (Actual) Quarter 3 Quarter 4 2016 Condo 1,581 1,399
1,822
1,537 3,636 8,576 Housing 598 634
706
605 781 2,690 Ananda F/S 2,179 2,033
2,528
2,142 4,417 11,266 Ananda Share in JV
2,211 Mitsui Share in JV
2,124 Total (M Baht) 2,179 2,033
2,528
2,142 8,752
15,601
projects to complete in 2016
Q2/2016 Transfer beat our latest guidance by 24%
Updated: June 30, 2016
8 8
Project value 2,546 Transfer begins 3Q16 % Net sold 67.5% % Transfer
1,444 Transferred in Q2
1,444 Backlog 1,719 To be transferred after 2016 1,102 Project value 1,752 Transfer begins 4Q16 % Net sold 65.4% % Transfer
861 Transferred in Q2
861 Backlog 1,145 To be transferred after 2016 892
Ideo Q Ratchathewi Ideo Mobi Sukhumvit Eastgate
Ideo Mobi Wongsawang Interchange Unit: M Baht
New New New
3% transfer after 2016
99.2% sold
97% transfer target in 16 43% transfer after 2016
67.5% sold
57% transfer target in 16
65.4% sold
49% transfer target in 16 51% transfer after 2016
61% of Transfer Target will be derived from new projects
Project value 2,008 Transfer begins 1Q16 % Net sold 99.2% % Transfer 85.2% Transfer target in 2016 1,943 Transferred in Q2 965 To be transferred in the next 6M 232 Backlog 282 To be transferred after 2016 65
Updated: June 30, 2016
9 9
Project value 2,108 Transfer begins 4Q16 % Net sold 61.8% % Transfer
996 Transferred in Q2
996 Backlog 1,303 To be transferred after 2016 1,112 Project value 6,773 Transfer begins 4Q16 % Net sold 96.8% % Transfer
4,335 Transferred in Q2
4,335 Backlog 6,559 To be transferred after 2016 2,438
UNIO Charan 3 Ideo Q Chula Samyan1
Unit: M Baht
New New
Note : 1 Joint Venture with Mitsui Fudosan and Ananda 51% Share
61.8% sold
47% transfer target in 16 53% transfer after 2016
97% sold
64% transfer target in 16 36% transfer after 2016
61% of Transfer Target will be derived from new projects (Cont.)
Updated: June 30, 2016
10 10
Project value 1,888 Transfer begins 4Q13 % Net sold 99.6% % Transfer 99.6% Transfer target in 2016 8 Transferred in Q2
8 Project value 1,478 Transfer begins 2Q14 % Net sold 100% % Transfer 100% Transfer target in 2016 32 Transferred in Q2 32 To be transferred in the next 6M
3,346 Transfer begins 4Q14 % Net sold 100.0% % Transfer 99.6% Transfer target in 2016 563 Transferred in Q2 277 To be transferred in the next 6M 9 Backlog 13 To be transferred after 2016 4
Ideo Mobi Sathorn Elio Sukhumvit 64 Elio Del Ray Unit: M Baht
99.6% already transferred
99.6% sold
0% transfer target in 16 100% already transferred
100% sold
2.2% transfer target in 16 99.6% already transferred
100% sold
16.8% transfer target in 16
39% of Transfer Target will be derived from existing projects
11 11
Project value 3,749 Transfer begins 4Q14 % Net sold 68.1% % Transfer 67.0% Transfer target in 2016 990 Transferred in Q2 200 To be transferred in the next 6M 638 Backlog 41 To be transferred after 2016 600 Project value 2,237 Transfer begins 3Q15 % Net sold 82.8% % Transfer 80.4% Transfer target in 2016 772 Transferred in Q2 191 To be transferred in the next 6M 403 Backlog 55 To be transferred after 2016 35 Project value 3,802 Transfer begins 4Q15 % Net sold 85.4% % Transfer 83.1% Transfer target in 2016 974 Transferred in Q2 188 To be transferred in the next 6M 590 Backlog 85 To be transferred after 2016 51
Ideo Sathorn Tha Phra Ideo Wutthakat Ideo Mobi Charan Interchange
67.0% already transferred
68.1% sold
26.4% transfer target in 16 80.4% already transferred
82.8% sold
34.5% transfer target in 16 83.1% already transferred
85.4% sold
25.6% transfer target in 16
39% of Transfer Target will be derived from existing projects (Cont.)
Updated: June 30, 2016
Unit: M Baht
12 12
Project value 7,430 Transfer begins 1Q13 % Net sold 56.7% % Transfer 53.9% Transfer target in 2016 1,313 Transferred in Q2 326 To be transferred in the next 6M 620 Backlog 214 To be transferred after 2016 2,801 Project value 2,922 Transfer begins 3Q15 % Net sold 42.7% % Transfer 38.9% Transfer target in 2016 1,378 Transferred in Q2 378 To be transferred in the next 6M 769 Backlog 112 To be transferred after 2016 1,017
Atoll (5 projects) Arden (3 projects)
38.9% already transferred
42.7% sold
47.1% transfer target in 16 53.9% already transferred
56.7% sold
17.7% transfer target in 16
39% of Transfer Target will be derived from existing projects (Cont.)
Updated: June 30, 2016
Unit: M Baht
1Q16 (A) 2Q16 (F) 2Q16 (A) 3Q16 (F) 4Q16 (F) 2,977 2,391 7,436 10,138 1,239 Unit : Mil Baht Condo Housing
13
13
2016 Launches Target between 21,000 and 22,000 M Baht
Quarter Quarter 1 Quarter 2 Quarter 2 (Actual) Quarter 3 Quarter 4 2016 Condo 2,977 2,391
10,138 20,550 Housing
1,239 Total (M Baht) 2,977 2,391
11,377
21,789
1 2
5
11
Launches 11 Sites JV 4 Sites accounting for 68% of launches)
Q2/2016 Launches moved from June to July
New Launch in Q3 >> UNiO Sukhumvit 72
14 14 14
UNiO Sukhumvit 72 Project value (M Baht) 1,431
984 Soft Launched date July 2016 Expected transfer date 2017 Location
New Launch in Q3 >> UNiO Rama 2-Thakham
15 15 15
UNiO Rama 2 - Thakham Project value (M Baht) 962
724 Soft Launched date July 2016 Expected transfer date 2017 Location Rama 2 Road, opposite Central Rama 2
16 16 16
New Launch in Q3 >> Ideo Mobi Asoke
17
17
2016 Presales Target between 20,500 and 21,500 M Baht
Quarter Quarter 1 Quarter 2 Quarter 2 (Actual) Quarter 3 Quarter 4 2016 Condo 3,995 2,797
2,691
4,198 6,689 17,573 Housing 783 635
763
883 949 3,378 Total (M Baht) 4,778 3,432
3,454
5,082 7,637
20,952
1Q16 (F) 2Q16 (F) 2Q16 (A) 3Q16 (F) 4Q16 (F) 3,995 2,797 2,691 4,198 6,689 783 635 763 883 949 Unit : Mil Baht Condo Housing
Q2/2016 Presales beat our latest guidance by 0.6% despite moving 2 new launches from June to July
2016 2017 2018 3,727 3,546 2,211 5,916 7,616 2,124 5,684 7,317 327 Unit: Mil Baht Ananda's Backlog - Condo Ananda's Backlog in JV - Condo Mitsui's Share Ananda's Backlog - Housing
18
Updated: June 30, 2016
8,389 14,933 15,146
Unit: M Baht
next 6M16 secured by Backlog
18 18 2016 2017 2018
3.41% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% 7.00% 1 2 3 4 5 6 7 2.42% 0.00% 2.00% 4.00% 6.00% 8.00% 1 2 3 4 5 6 7 30.80% 1.00% 11.00% 21.00% 31.00% 41.00% 1 2 3 4 5 6 7
19 19
1Q15 2Q15 3Q15 4Q15 1Q16 2Q16
Note: % Cancellation Rates are calculated by cancelled value divided by beginning backlog + presales
Updated: June 30, 2016
1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16
11.85% 1.00% 6.00% 11.00% 16.00% 21.00% 1 2 3 4 5 6 7 3.70% 0.00% 5.00% 10.00% 15.00% 20.00% 1 2 3 4 5 6 7 31.36% 15.00% 20.00% 25.00% 30.00% 35.00% 40.00% 1 2 3 4 5 6 7 Updated: June 30, 2016
20 20
Note: % Mortgage Rejection Rates are shown by units
1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16
Construction on schedule Interim dividend payment Perpetual securities issued
Revenue 24% above target Revenue rose 87% YoY Net Profit up 191% YoY %SG&A to revenue down from 29% to 20% Big Backlog – 38.5 Bn Baht Net IBDE – below target at 0.7 times
21 21
Fact sheet Detail
1. Debentures’ name Subordinated Perpetual Debentures of Ananda Development Public Company Limited No. 1/2016
Subordinated Perpetual Debentures with Payable Upon Dissolution with the Issuer’s Right to Early Redemption and Unconditional Interest Deferral
Institutional investors or/and high net worth investors
1,000,000 Units
1,000 Baht/Unit
1,000 Baht/Unit
1,000,000,000 Baht
12 May 2016 9. Interest Rate Year 1 to 5, Fixed Rate at 8.5% per annum Year 6 to 25, Govt Bond Yield 5 year plus Initial Credit Spread (7.01%) plus 0.25% per annum Year 26 onward, Govt Bond Yield 5 year plus Initial Credit Spread (7.01%) plus 1.00% per annum 10. Tenor No expiration date
instruments “BB+” (stable) by Tris Rating
Summary of Accounting Treatment Perp is treated as “Equity”. Perp is better than capital increase as no share dilution D/E and Net IBDE Ratio will be decreased. ROE is diluted in the short term (higher equity base). New capital will support ANAN’s strategy and earnings growth sustainability over the long term.
22 22
23
Item 2013 Actual 2014 Actual 2015 Actual 2016 Guidance
Transfer (M Baht) 8,808 9,678 9,598 15,000-16,000 Presales (M Baht) 21,083 20,898 26,235 20,500-21,500 Gross Profit Margin 37% 38% 39% 34% Total Debt / Equity, Year End 1.10 1.47 1.36 1.19 Net Interest Bearing D / E, Year End 0.30 0.74 0.70 0.94 Effective Tax Rate 21% 18% 22% 20% Launches (M Baht) 34,213 14,954 34,828 21,000-22,000 Land Purchases (M Baht) 4,343 10,284 5,258 8,660
23 23
6M16 secured by Backlog
Transfer to be tripled in the next 3 years
Note: The 5-year plan has assumption of no new capital and keeping net IDE ratio at 1:1
24 TRANSFER
15,601
TRANSFER
30,215
TRANSFER
42,309
TRANSFER
48,441
TRANSFER
57,131
9,598
2015 2016 2017 2018 2019 2020 TRANSFER
9,598
11,266 2,211 2,124
4,054 2,211 2,124 3,546 5,916 5,684 7,616 7,317
BACKLOG
8,389
BACKLOG
15,146
BACKLOG
14,933
77% of
2H16
50% 35%
94% 45%
Economic situation not strong GDP growth projections revisions pending Referendum reduces uncertainty Government mega-project may be accelerated Land price increases slowing Construction costs constrained Watching global economy post Brexit Consumer confidence finally turning around Banks remain strongly supportive – Perp Our customer group remains “cashed up” and with good credit Mass Transit Supply/Demand varies by station Mass Transit market more robust than general market
Source : University of Thai Chamber
25 25 Initial Sales Rate
Sources: AREA
59% 47% 58% 36% 64% 22% 0% 10% 20% 30% 40% 50% 60% 70% 0-300 m. > 1,000 m. 2013 2014 2015
Updated : 27 July 2016 Under Construction
2016)
Lampong (2019)
(2018)
Awarding within 2016
(2020) *To be considered by cabinet by Sep, 2016
(2020) *Approved by cabinet April 19, 2016
*Approved by cabinet March 29, 2016
*Approved by cabinet March 29, 2016
Makasan – Huamark (2019) *Approved by cabinet July 26, 2016
*Approved by cabinet July 26, 2016
Current Line Under Construction Awarding in 2016 and under study
Mass Transit Network Expansion
26
Interim Dividend
The company’s intention has always been to provide investors with a good dividend as well as capital growth Our stated policy has been to pay a dividend when the Board thought it was appropriate and prudent Continues our record of increasing the interim dividend every year since IPO
27
Board approves that an interim dividend should be paid in the amount of 4 satang per share An increase of 25% from a year earlier
27 27 27
28 28 28 28 28
29 29
Dec, 2012 2013 2014 2015 2016 2017 2018
TRANSFER
8,808 MB
TRANSFER
9,678 MB
TRANSFER1
15,601 MB
TRANSFER1
30,215 MB
TRANSFER1
42,309 MB
29
Note : 1 Including Joint Venture with Mitsui Fudosan and Ananda 51% Share
TRANSFER
9,598 MB
5 Years 5 Times Growth
technology silos | employee frustration
| productivity impact
We are working in the new world
30
30 30 30 30
Smart Reception & Lobby Smart Workspaces & Hot Desks Allocation Optimization & Allocation of Appropriate Meeting Rooms Remote Sites Management Command Centre Cloud Printing Adaptive Video Conferencing & Global Workforce Collaboration
Enhanced Branding
Reduced Real Estate Costs
Saving on real estate costs Increased space utilization rate
through hot-desking / flex working
Cut energy costs
Increased Business Value
Higher ROI in investments Increase employee’s engagement to gain productivity growth Minimize wastage of resources
31
Remote Access to Office Facilities & Functions
Enhanced Employee Experience
resulting in time & cost savings
allocation and scheduling
retention
31
31 31 31 31
Improved Productivity
Smart Office Objectives
Higher output per worker Increased collaboration Greater creativity Faster innovation
Digital is all around
Smart booking seat and room , Smart finding people , Digital signage , Wireless printer cloud based , Interactive meeting room : E-board by Samsung
Smart Booking Seat and Room Digital Signage Wireless Printer cloud based
Smart Office : Maximize Productivity
32 32 32 32 32
Interactive Meeting Room E-board by Samsung
Make workspace available, when and where people need them, on demand
The Connected Workforce The Connected Building
Satisfaction
Increase Productivity Help recruit and retain talent Reduce Operation Cost
33
33 33 33 33
HOT-DESK CONCEPT
Collaborative Work Space Design. Sitting wherever and whoever you to collaborate with.
Collaboration
34 34 34 34 34
Always Connected Digital Conference with HD webcam, IP Telephone – Smart Telephone (Jabber) , Hi-Speed internet
35 35 35 35 35
Smart Office : Maximize Productivity
36
Content Sharing Interactive Meeting with Multiple Media Wireless Screen Mirror from Device to Display Capture Meeting Information & Sharing
36
36 36 36 36
E-Board Solution
The Connected Workforce
37
37
37 37 37 37
Ananda Development PLC 2016
Contact:
Chief Strategic Development Officer Ananda Development Public Company Limited john@ananda.co.th +662 697 3300 Mobile: +66 877 99 1946
Senior Investor Relations Manager Ananda Development Public Company Limited komsan@ananda.co.th +662 697 3300 Mobile: +66 819 16 3755
38 38
39 39 39
Current Projects >> 6M 2016 Sales
40
Updated: June 30, 2016
Project Launched Value (M Baht) %Net Sold Net Sales (M Baht) Backlog (M Baht) Unsold Inventory (M Baht) %Transfer
AD3: Ideo Mobi Sathorn Feb-12 1,888 99.6%
99.6% ADO: Atoll (Housing) Feb-13 7,430 56.7% 532 214 3,215 53.9% AD 14: Elio Sukhumvit 64 Mar-13 1,478 100.0%
AD14: Ideo Sathorn – Tha Phra Jul-13 3,749 68.1% 331 41 1,197 67.0% AD14: Elio Del Ray Aug-13 3,346 100.0% 365 13
AD 15: Ideo Wutthakat Aug-13 2,237 82.8% 322 55 384 80.4% AD15: Ideo Mobi Charan- Interchange Oct-13 3,802 85.4% 99 85 556 83.1% AD16: Ideo Q Ratchatewi Oct-13 2,008 99.2% (7) 282 15 85.2% AD16: Ideo Q Chula- Samyan1 Oct-13 6,773 96.8%
214
Sep-14 6,705 98.0%
133
Ratchathewi1 Sep-14 3,815 78.4% (6) 2,991 824
Wongsawang-Interchange Sep-14 1,752 65.4% 25 1,145 607
Eastgate Sep-14 2,546 67.5% 188 1,719 827
(2012-2014 Launched) 47,530 1,848 19,677 7,980
Note: 1 Joint Venture with Mitsui Fudosan
Updated: June 30, 2016
Project Launched Value (M Baht) % Net Sold Net Sales (M Baht) Backlog (M Baht) Unsold Inventory (M Baht) %Transfer
AD18: Ashton Chula-Silom1 Mar-15 8,693 68.9% 300 5,985 2,708
Mar-15 1,900 53.0% (78) 1,007 892
Jun-15 2,108 61.8% 368 1,303 805
Jun-15 2,922 42.7% 233 112 1,675 38.9% AD17: Ideo Sukhumvit 115 Aug-15 2,742 59.2% 368 1,622 1,120
Aug-15 2,992 43.6% (5) 1,305 1,686
Aug-15 5,060 45.4% 871 2,298 2,762
Grand Interchange1 Nov-15 2,529 33.5% 251 847 1,682
Nov-15 6,031 61.9% 1,261 3,734 2,297
(2015 Launched) 34,976 3,570 18,214 15,626
AD17: Ideo Tha Phra Interchange1 Feb-16 2,979 19.4% 577 577 2,403
(2016 Launched) 2,979 577 577 2,403
Grand total
85,485 5,995 38,468 26,009
41 41
Current Projects >> 6M 2016 Sales (Cont.)
Note: 1 Joint Venture with Mitsui Fudosan