Presentation
2015 Q2 Results Analyst Meeting and 2015 Business Plan
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Presentation 2015 Q2 Results Analyst Meeting and 2015 Business Plan #COLORSOFPULSE Disclaimer The information (Confidential Information) contained in this presentation is strictly confidential and is provided by Ananda Development Public
2015 Q2 Results Analyst Meeting and 2015 Business Plan
#COLORSOFPULSE
Disclaimer
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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.
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IOT Smart Home
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2Q/2015 Financial Statements
2Q2015 1Q2015 2Q2014 % Q-o-Q % Y-o-Y M Baht % M Baht % M Baht %
Total revenue
1,541 100% 1,394 100% 2,519 100% 11% (39%)
Revenue from sale of real estate
1,198 78% 1,201 86% 2,425 96% 0% (51%)
Other incomes
343 22% 193 14% 95 4% 78% 262%
Gross Profit
621 42% 546 41% 900 36% 14% (31%)
SG&A
441 29% 391 28% 483 19% 13% (9%)
Selling expenses
211 14% 180 13% 215 9% 18% (2%)
Administrative expenses
229 15% 211 15% 268 11% 9% (14%)
Other expenses
0% 0% 1 0% N/A (100%)
Share of Profit (Loss)
(124) (8%) (57) (4%) (10) 0% N/A N/A
EBIT
134 9% 161 12% 432 17% (17%) (69%)
Interest expenses
70 5% 61 4% 56 2% 14% 26%
EBT
64 4% 99 7% 376 15% (36%) (83%)
Tax
(8) N/A 26 26% 58 15% N/A N/A
Net Profit (Loss)
72 5% 74 5% 319 13% (2%) (77%)
Earnings per share (baht)
0.02 0.02 0.10 (2%) (77%)
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1H/2015 Financial Statements
1H2015 1H2014 % Y-o-Y M Baht % M Baht %
Total revenue
2,935 100% 4,310 100% (32%)
Revenue from sale of real estate
2,399 82% 4,138 96% (42%)
Other incomes
536 18% 171 4% 213%
Gross Profit
1,167 42% 1,500 35% (22%)
SG&A
832 28% 905 21% (8%)
Selling expenses
386 13% 401 9% (4%)
Administrative expenses
445 15% 505 12% (12%)
Other expenses
0% 3 0% (100%)
Share of Profit (Loss)
(181) (6%) (19) 0% N/A
EBIT
294 10% 613 14% (52%)
Interest expenses
132 4% 97 2% 36%
EBT
163 6% 516 12% (68%)
Tax
17 11% 87 17% (80%)
Net Profit (Loss)
146 5% 429 10% (66%)
Earnings per share (baht)
0.04 0.13 (66%)
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2Q/2015 Financial Highlight
2Q2015 1Q2015 2Q2014 % Q-o-Q % Y-o-Y
M Baht M Baht M Baht Cash balance 1,788 1,949 2,441 (8%) (27%) Assets 19,949 18,467 16,332 8% 22% Interest bearing debts 10,417 8,939 7,976 17% 31% Liabilities 13,117 11,481 10,191 14% 29% Shareholders' equity 6,832 6,987 6,141 (2%) 11% D/E ratio (times) 1.9 1.6 1.7 17% 16% Net IBDE ratio (times) 1.3 1.0 0.9 26% 40%
2015 Presales target between 26,000 and 26,500 M Baht
Quarter Condo (M Baht) Housing (M Baht) Total (M Baht) Quarter 1 8,617 738 9,355 Quarter 2 1,468 572 2,040 Quarter 2 Actual 2,050 1,065 3,115 Quarter 3 3,766 686 4,452 Quarter 4 8,589 790 9,379 Grand Total 23,022 3,279 26,301
Q2/2015 Presales above our guidance 53% Full Year guidance increased 3%
1Q15 (A) 2Q15 (F) 2Q15 (A) 3Q15 (F) 4Q15 (F)
8,617 1,468 2,050 3,766 8,589 738 572 1,065 686 790 Unit : M Baht
Condo Housing
1Q15 (A) 2Q15 (F) 2Q15 (A) 3Q15 (F) 4Q15 (F)
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Updated: June 30, 2015
Project Launched Value (M Baht) %Net Sold Net Sales (M Baht) Backlog (M Baht) Unsold Inventory (M Baht) %Transfer
AD3: Ideo Mobi Phayathai Feb-12 1,466 100.0% 37 7
AD3: Ideo Mobi Sathorn Feb-12 1,888 99.6% 13
98.8% AD3: Ideo Mobi Rama 9 Feb-12 2,885 98.8% 89 25 9 98.8% ADO: Atoll (Housing) Feb-13 8,487 47.4% 824 508 4,465 41.4% AD 14: Elio Sukhumvit 64 Mar-13 1,474 91.4% 217 153 127 81.0% AD14: Ideo Sathorn – Tha Phra Jul-13 3,786 51.8% (145) 567 1,826 36.8% AD14: Elio Del Ray Aug-13 3,305 78.3% 462 350 718 67.7% AD 15: Ideo Wutthakat Aug-13 2,144 51.8% 84 1,111 1,033
Interchange Oct-13 3,697 76.4% 149 2,823 873
Oct-13 2,020 99.0% (5) 2,000 20
Oct-13 6,773 96.8% 6 6,559 214
Sep-14 6,705 98.0% 35 6,572 133
Ratchathewi1 Sep-14 3,811 76.8% (563) 2,926 884
Wongsawang-Interchange Sep-14 1,817 62.2% 23 1,130 686
Eastgate Sep-14 2,658 52.2% 149 1,388 1,270
52,918 1,378 26,137 12,267
Note: 1 Joint Venture with Mitsui Fudosan
Updated: June 30, 2015
Project Launched Value (M Baht) % Net Sold
Net Sales (M Baht) Backlog (M Baht) Unsold Inventory (M Baht) AD18: Ashton Chula-Silom1 Mar-15 8,674 63.1% 5,609 5,609 3,065 AD17: Ashton Residence 41 Mar-15 1,852 83.9% 1,555 1,555 297 AD16: UNIO Jun-15 2,005 25.6% 514 514 1,491 AD16: ARDEN 3 projects Jun-15 3,036 19.4% 588 588 2,448
Sub total (2015 Launched) 15,568 8,131 8,131 7,437 Grand total 68,486 9,509 34,267 19,704
Total Gross Presales Value (M Baht) New Launches 8,947 Existing Projects 3,524
Total Gross Presales 12,470
annual presales target of 23 Bn Baht already achieved
new launches this year still to come
New
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Note: 1 Joint Venture with Mitsui Fudosan
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2015 2016 2017 2018 4,620 8,810 6,399 2,792 3,214 4,654 2,682 1,096
Ananda's Backlog - Condo Mitsui's Share Ananda's Backlog - Housing
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Updated: June 30, 2015
5,717
12,024 5,474 11,054
2015 2016 2017 2018
next 6M15 secured by Backlog
Backlog as of June 2015
Backlog as of Dec 2014
27.1
Bn Baht Presales from New Launches 8.9 Bn Baht Cancelled 3 Bn Baht Presales from Existing 3.5 Bn Baht Backlog as of Jun 2015
34.3
Bn Baht
70%
Transferred 2.4 Bn Baht
52% 29% 9%
Unit: M Baht
secured by Backlog
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JV Projects To be launched
Projects JV’s Project Value (M Baht)
3Q2015 2 7,779 4Q2015 2 8,388 1Q2016 1 3,006
To be launched 5 19,173
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1Q15 (A) 2Q15 (F) 2Q15 (A) 3Q15 (F) 4Q15 (F) 10,496 1,935 2,005 10,518 9,813 2,940 3,036 Unit : M Baht Condo Housing
2015 Launches target between 35,500 and 36,000 M Baht
Quarter Condo (M Baht) Housing (M Baht) Total (M Baht) Quarter 1 10,496
Quarter 2 1,935 2,940 4,875 Quarter 2 Actual 2,005 3,036 5,041 Quarter 3 10,518
Quarter 4 9,813
Grand Total 32,832 3,036 35,868
Q2/2015 Launches above our guidance 3% Full Year Guidance increased 11%
1Q15 (A) 2Q15 (F) 2Q15 (A) 3Q15 (F) 4Q15 (F)
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“ SUKHUMVIT GREEN LINE “ : The Best mass transit line in BKK
Green Line is the best mass transit line in Bangkok
Q Chidlom Half the price of nearby new project but only 300 m further away 814k psqw for Q Chidlom compared to 1.9 million psqw for other nearby recent purchase (rumoured) Q Chidlom – Iconic building with unique sky garden
BTS Chidlom BTS Promphong*
Projects on “ the Best Mass Transit Line in BKK”
The Best Value for “GEN C “
BTS Bangna BTS Pu Chao
Ideo O2 sold at 92k psqm when average market price is 117k psqm as land price was
Plus unique 10 rai common area – unmatchable in the area Ideo 115 - land Price per FAR only 22k psqw
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* Register only and will sell in Q4
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Q Chidlom-Phetchaburi
Concept: Elite Living at the Heart of Convenience
with decor
(3 floors)
Space
Shops Starting unit price 5.5 mil Baht
Q CHIDLOM – PETCHABURI 650 M. BTS CHIDLOM
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The Sky Scape Facilities (41-42 FL) Q Chidlom-Phetchaburi
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Q Chidlom-Phetchaburi: Vibrant Lifestyle On CBD
The Market Makasan Garden Central Embassy Pathumwanaruk Garden Central World Siam Paragon
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42 360-Pool 32 Sky Garden 42m Sky Fitness 40-41 Sky Lounge Turkish Bath 33-39 Vertical GREEN Star Garden
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29.7 m. 18.0 26 26
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Bangkok Mall
Ideo O2
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BTS Green Line VS The Green Park
Ideo O2 BTS Bangna 34 34
Near BTS Bangna & Bangkok Mall Public facilities 10 Rais
Concept: Boost Up Your Life
Peppermint Bike Park
and 3 zones
Starting unit price 2.2 mil Baht
Ideo O2
3 3 Key y Conc ncept pt : Recharge + Refresh + Oxygen
Mountain Bike track
700 M Certified by Peppermint
Swimming pool 3 Zone 1,700 Sq.M
+ Lap pool 75 M
Futsal pitch Jogging track
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Connecting pool 3 Zones 1,700 Sq.M
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3 Swimming Pools 1,700 sqm. 75 m. Lap pool 700 m. Mt.Bike track Futsal Green atrium Every 5 floors on building Community retails 200 m.Running track Grand Indoor
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Units with resort balcony 3 Oxy cascade 2 Ozone creek 75 m. Lappool 1 Arial lagoon
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Pool side resort environment
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Mountain Bike track
700 M Certified by Peppermint
Futsal pitch
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Exclusive Presales “ C Building” Only
Presales only C Building = 1,600MB. = 561 Units
Concept: LIVE On Track
Live On Station Close to Big C Close to BTS Pu Chao
Ideo Sukhumvit 115
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Ideo Sukhumvit 115: Live On Station
Bangkok Mall Big C Jumbo Kanchanapisek express way (outer ring)
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1Q15 (A) 2Q15 (F) 2Q15 (A) 3Q15 (F) 4Q15 (F)
868 599 808 1,280 4,536 333 515 391 777 1,555 Unit : M Baht
Condo Housing
2015 Revenue target between 10,000 and 11,000 M Baht
Quarter Condo (M Baht) Housing (M Baht) Total (M Baht) Quarter 1 869 332 1,201 Quarter 2 599 515 1,113 Quarter 2 Actual 808 391 1,198 Quarter 3 1,280 777 2,056 Quarter 4 4,536 1,555 6,091 Grand Total 7,492 3,055 10,547
Q2/2015 Revenue above our guidance 8% Full year Revenue unchanged
1Q15 (A) 2Q15 (F) 2Q15 (A) 3Q15 (F) 4Q15 (F)
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Source Total Project Value Begins Revenue in 2Q2015 Revenue to achieve in the Q3-Q4/15 Revenue to be transferred after year 2015 Already Sold (As of Jun 15) M Baht % M Baht % M Baht % M Baht % M Baht 6,240 4Q2013 2% 95 1% 54 0% 10 1% 48 1,474 2Q2014 8% 117 5% 68 14% 212 10% 153 3,305 4Q2014 13% 422 17% 565 15% 504 11% 350 3,786 4Q2014 5% 174 35% 1,315 28% 1,077 15% 567 2,144 3Q2015 0%
1,337 38% 807 52% 1,111 3,697 4Q2015 0%
2,476 33% 1,221 76% 2,823 8,487 1Q2013 5% 391 14% 1,165 45% 3,800 6% 508 3,036 3Q2015 0%
1,168 62% 1,868 19% 588
Total
32,170 1,198 8,149 9,501 6,149
Updated: June 30, 2015
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Project Total Project Value Revenue to achieve in 2015 Revenue to achieve in the Q3-Q4/15 Already Sold (As of Jun 15) Sales required in Q3-Q4 Sales required/ quarter Sales rate in Q2
M Baht % Project Value M Baht % 2015 Revenue M Baht % Revenue in Q3-Q4 M Baht % Revenue in Q3-Q4 M Baht
M Baht
M Baht % Required rate
Condo 20,647 36% 7,491 78% 5,815 87% 5,052 21% 1,196 598 907 152% Housing 11,523 27% 3,056 76% 2,333 47% 1,096 53% 1,236 618 1,412 228%
Total
32,170 33% 10,547 77% 8,149 75% 6,149 30% 2,432 1,216 2,319 191%
Updated: June 30, 2015
Condo Housing
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Note: % Already sold to revenue in Q3-Q4, not % Backlog to revenue in Q3-Q4
Updated: June 30, 2015
Cancelled Value: 1,634 M Baht Cancelled Value: 287 M Baht Cancelled Value: 1,921 M Baht Cancelled Value: 980 M Baht Cancelled Value: 279 M Baht Cancelled Value: 1,258 M Baht
2.1% 2.7% 2.2% 3.7% 6.2% 3.9%
2Q15 1Q15
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Note: % Cancellation Rates are calculated by cancelled value divided by total presales
Updated: June 30, 2015
2.6% 19.8% 6.6% 7.9% 30.1% 13.9%
2Q15 1Q15
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Note: % Mortgage Rejection Rates are shown by units
Fact sheet Detail
1. Debentures’ name Subordinated Perpetual Debentures of Ananda Development Public Company Limited
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
19 August 2015
Year 1 to 5, Fixed Rate at 9% per annum Year 6 to 25, Govt Bond Yield 5 year plus Initial Credit Spread (6.63%) plus 0.25% per annum Year 26 to 50, Govt Bond Yield 5 year plus Initial Credit Spread (6.63%) plus 1.00% per annum Year 51 onward, Govt Bond Yield 5 year plus Initial Credit Spread (6.63%) plus 1.50% per annum 10. Tenor No expiration date
“BB”(positive) 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.
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Dividend Amount 107 Mil Baht 6 Months Consolidated NPAT 146 Mil Baht % Dividend / 6 Months Consolidated NPAT (Non-annualized) 73%
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Construction of condos on schedule Launches successful 5 new JVs with Mitsui Perpetual security launched in August Interim Dividend increased by 6.7%
Presales 53% above target Cost of pre-sales down – from 13% to 7% Record Backlog – 34 Bn Baht Revenue – 8% above guidance Net IBDE – on target at 1.3 times
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87% 46% 94% 45%
Economic situation not strong GDP growth projections revised down Land price increases slowing Construction costs constrained Consumer confidence weakening 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
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Updated 27-Jul-15 Under Construction
Bangyai (2016)
Bangkae – Hua Lampong (2019)
Samutprakarn (2020)
Talingchan (2016)
(2019)
Kukod (2020)
Awarding within 2015
Thammasat (2018)
Center - Minburi (2020)
Awarding within 2016
Huamark (2018)
Donmuang (2019)
(2020)
Samrong (2021) Current Line Under Construction Awarding in 2015 and 2016
Mass Transit Network Expansion
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Line Value (M Baht)
Stations Approval Status 2015 2016 2017 2018 2019 2020 2021 Purple (Bang Yai-Bang Sue) 66,820 16 Approved Blue (Bang Sue-Tha Pra) and (Hua Lamphong-Bang Kae) 82,387 20 Approved Green (Bearing-Samut Prakarn) 28,659 9 Approved Light Red (Bangsue-Talingchan) 13,000 6 Approved Light Red (Bangsue-Huamark) 39,176 7 To be approved by 2016 Red (Bangsue-Rangsit) 80,375 10 Approved Red (Rangsit-Thammasat) 5,412 3 To be approved by 2015 Green (Mochit-Sapanmai-kukot) 58,862 13 Approved Pink (Karai-Pakkred-Minburi) 58,303 30 To be approved by 2016 Yellow (Ladprao-Pattanakarn-Samrong) 56,110 21 To be approved by 2016 Orange (Cultural Center-Bangkapi- Minburi) 110,326 14 To be approved by 2015 Purple South (Taopoon-Ratburana) 91,716 16 To be approved by 2015 Airport Rail Link (Phayathai-Don Muang Airport) 29,000 5 To be approved by 2016
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Updated : 27 July 2015
2015 2016 2017 2018 2019 10,547 13,543 14,000 15,000 18,000 3,457 8,000 15,000 17,000 5,717 8,810 6,399 2,792 2,399 10,547 17,000 18,501 14,070 960
Ananda's revenue Ananda's 51% share in JVs Ananda's share of backlog Ananda transferred Land secured
45%
6M15 secured by Backlog
2015 2016 2017 2018 2019
secured by Backlog Housing Key Drivers Condo
100% 100% 84% 47% 3%
10,547 17,000 22,000 35,000 30,000
Updated: June 30, 2015
Unit: M Baht
8,116 8,810 6,399 2,792 60 60
Note: The 5-year plan has assumption of no new capital and keeping net IDE ratio at 1:1
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HOME AUTOMATION SMART HOME
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Four Fundamental Core Competencies
Location
Price
Design
Marketing
Now Fifth Fundamental Core Competencies
Functionality
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“IoT Sensors can provide real-time information about building resource consumptions to residents & property managers for control, monitoring & analysis that will lead to better energy efficiencies.” Home Systems Building Management Building Security Energy & Resource PRODUCT VALUE INCREASE ALL ELECTRONICS
HIGHLY SOPHISTICATED ENERGY EFFICIENT BUILDINGS “Research projects that by 2020 there will 50 BILLION* machines connected to the internet and automatically communicating with each other.”
*Source: Cisco report April 2011
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USA launch only No Asia launch for at least 3 years Closed System - Apple only Still developing
Exclusive Launch Q3 2015
Thailand Retail Launch Q2 2016
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Customer Centricity
Customer Type
Value Mechanic
Single Female Bachelor Young Family with Children Elderly
Use Case
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Visionary Kitchen Bedroom
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Incubator Investment
improve them
Ananda and Samsung Share Customer Centric Mindset Establish X-Prizes to Encourage Thai Entrepreneurs to Solve Points of Suffering Our Research Discovers Develop New IoT Technology for Overall Building Design
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Ananda Development PLC 2015
Contact:
Head of Financial Strategy and Investor Relations Ananda Development Public Company Limited john@ananda.co.th +662 697 3300 Mobile: +66 877 99 1946
Investor Relations Manager Ananda Development Public Company Limited komsan@ananda.co.th +662 697 3300 Mobile: +66 819 16 3755
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