U CITY PCL FY 2018 EARNINGS PRESENTATION 20 FEB 2019 Prepared by - - PowerPoint PPT Presentation

Prepared by Investor Relations Department

U CITY PCL

FY 2018 EARNINGS PRESENTATION

20 FEB 2019

U CITY PCL

Prepared by Investor Relations Department

U CITY PCL

Address: U City Public Company Limited IR Department 20th Floor, TST Tower, 21 Soi Choei Phuang, Viphavadi-Rangsit Rd. Chomphon, Chatuchak, Bangkok, Thailand 10900 Telephone: +66(0) 2273 8623 Fax: +66(0) 2273 8858 Email: ir@ucity.co.th Website: www.ucity.co.th

This document has been prepared and distributed by the Investor Relations Department of U City Public Company Limited (“U City”) solely for information

• purposes. It does not represent or constitute an offer, invitation, recommendation or solicitation to trade shares in U City and should not be relied on as
• such. Some of the information in this document has not been independently verified, and also includes information made available from public sources and other

third party opinion or analyst. U City does not monitor or control the content of third party opinion or statements and does not endorse or accept any responsibility for the content or the use of any such opinion or statements. Thus, U City assumes no responsibility and makes no representations with respect to the accuracy and/or completeness of the information described herein. None of U City or any of its agents, or all of their respective affiliates, or representatives shall have any liability (in negligence or otherwise) for any loss howsoever arising from any use of this document or its contents or otherwise arising in connection with this document. All information contained in this document is presented as of the date indicated within, and U City assumes no duty to confirm, revise or update the information. Certain statements in this document may be deemed to contain forward-looking statements, including the statements included or incorporated with the words "believe", "anticipate", "estimate", "target", or "hope", or that otherwise relate to objectives, strategies, plans, intentions, beliefs or expectations or that have been constructed as statements as to future performance or events. These forward-looking statements are not guarantees of future performance and involve risks and uncertainties that could cause actual results to differ materially from historical results or those anticipated at the time the forward-looking statements are made. Thus, U City assumes no responsibility and makes no representations with respect to the accuracy and/or completeness of the forward-looking statements. U City undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

DISCLAIMER IR CONTACT

2

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CONTENTS

3 Section 1 Financial Performance Section 2 Operational Performance Section 3 Business Updates Section 4 Appendix

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KEY HIGHLIGHTS 2018

4

• Capital increase of THB 11.9bn via preference

shares, issuance of U-W3 & U-W4 warrants, EBT of UE

• Reverse stock split of ordinary and preferred

shares and capital reduction to reduce deficit to pave way for future dividend payments

• Expansion of hotel business – acquisition of

VHE Bratislava, opening of VHE Leipzig and Eastin Thana City, VH-AHS JVs, UBM+VH JV

• Sansiri JV – launched 3 projects this year

totaling THB 12.7bn (The Line Wongsawang, The Base Saphanmai, The Line Pahonyothin Park) and transferred units of 4 projects

+222.5% YoY +42.0% YoY

Total Revenue

THB 6,976mn

Net Loss

629mn vs

(983)mn (2017) Net D/E Ratio

0.55x vs

0.93x (31 Dec ‘17) Total Assets

THB 54.0bn

56.6% YoY

Key Developments of the Year

+34.7% from 31 Dec ‘17

Section 1: Financial Performance

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FINANCIAL PERFORMANCE OVERVIEW

5

PROFIT & LOSS

THB mn 2018 2017 % YoY 4Q 2018 % QoQ

Total Revenues 6,976.2 4,454.0 56.6% 1,969.3 10.5% Operating Revenue 6,396.2 4,029.7 58.7% 1,718.4 1.1% Gross Operating Profit (GOP) 3,965.1 2,563.4 54.7% 1,038.5 (3.7)% SG&A 3,213.5 2,062.2 55.8% 969.9 17.5% EBITDA 976.5 144.0 578.0% 319.5 N.A. Share of Profit 31.1 (1.1) N.A. 37.9 303.4% Finance Cost 909.8 556.3 63.6% 111.0 (16.2)% Net Profit/Loss (628.9) (983.2) (36.0)% 93.1 N.A. GOP Margin 62.0% 63.6% 60.4% EBITDA Margin 14.0% 3.2% 16.2% Operating EBITDA Margin* 19.1% 20.8% 16.2% Net Profit Margin (9.0%) (22.1)% 4.7%

Section 1: Financial Performance

2018 REVENUE GROWTH CONTRIBUTION 2018 REVENUE CONTRIBUTION BY SEGMENT

Hospitality THB 6,009mn 86.1% Office THB 282mn 4.0%

THB 6,976mn

Others* THB 685mn 9.8%

* Includes property management revenue

74.2% 61.4% 55.4% (THB mn) 4,454 6,976 2,141 120 261 2017 Hospitality Office Others* 2018 * Excludes impairment charges

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(983) (629) 6,396 (2,431) (3,214) (355) (910) (684) 31 537 2017 Net Loss Operating Revenue Operating Cost SG&A Impairments Finance Cost

• Depr. &

Amort. Share of Profit Tax & Others 2018 Net Loss

FINANCIAL PERFORMANCE OVERVIEW

6

(THB mn)

Vienna House Operating Expenses THB 1,721mn (71% of operating cost) Section 1: Financial Performance

• 1. Vienna House SG&A THB 2,217mn (69% of SG&A cost)
• 2. FX Loss of THB 168mn (5% of SG&A cost)

One-off Impairment of NMG shares THB 355mn Share of Profit from Associates & JVs

• VH JV

27

• AHS

11

• MHG

6

• Sansiri JVs

(12)

• Keystone JVs (1)

Total 31 Vienna House Operating Revenue THB 4,600mn (72% of operating revenue)

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6,416 893 510 1,480 6,926 2,373 12M 2017 12M 2018 Investments CAPEX 17,858 29,152 19,627 22,345 2,577 2,468 40,062 53,964 31 Dec 17 31 Dec 18 Equity Non-Current Liabilities Current Liabilities 35,711 47,374 4,352 6,591 40,062 53,964 31 Dec 17 31 Dec 18 Non-Current Assets Current Assets

BALANCE SHEET & CASH FLOW

7

CAPEX & PROPERTY INVESTMENTS (THB mn) 12M CASH FLOW (THB mn)

(5,659)

* Others includes translation adjustment and cash & cash equivalents of subsidiaries at acquisition and selling date

Section 1: Financial Performance

7.4% 92.6% 62.4% 37.6% 10.9% 89.1% 12.2% 87.8% 6.4% 44.6% 49.0% 4.6% 54.0% 41.4% (THB mn) (THB mn) 1,383 2,797 (502) (2,482) 3,511 887

Beginning Cash 1 Jan 18 CFO CFI CFF Others Ending Cash 31 Dec 18

(THB mn)

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DEBT STRUCTURE

8

KEY RATIOS

Section 3: Financial Summary

4.4% Weighted Average Cost of Debt 6.8 years Weighted Average Maturity of Debt THB 1,019mn THB 19,325mn Current Debt Non-Current Debt 31 Dec 2018: 20,344mn 31 Dec 2017: 18,087mn Total Interest Bearing Debt 31 Dec 2018: 0.55x 31 Dec 2017: 0.93x Net D/E Ratio 31 Dec 2018: 0.70x 31 Dec 2017: 1.01x D/E Ratio

Fixed Rate 10% Floating Rate 90% EUR 53% GBP 1% THB 46%

BREAKDOWN BY INTEREST BREAKDOWN BY CURRENCY

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CONTENTS

9 Section 1 Financial Performance Section 2 Operational Performance Section 3 Business Updates Section 4 Appendix

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100.0% 71.7% 65.3% 62.4% 65.3% 59.8% 60.5% 58.2% 21.3% 24.4% 25.4% 25.5% 28.9% 27.4% 29.5% 7.0% 10.3% 12.1% 9.2% 11.3% 12.1% 12.3% 100.0% 36.5% 18.5% 20.7% 25.6% 19.3% 21.0% 23.6% 1Q '17 2Q '17 3Q '17 4Q '17 1Q '18 2Q '18 3Q '18 4Q '18 Owned Leased Managed % Thai Sourced Revenue

HOSPITALITY SEGMENT OVERVIEW

10 Section 1: Financial Performance Type 2019 2020 2021 2022 Total Owned 394 (1) 394 (1) Leased 260 (2) 200 (1) 607 (1) 80 (1) 1,147 (5) Managed 2,528 (9) 6,750 (13) 5,528 (8) 775 (1) 15,581 (31) Total 2,788 (11) 6,950 (14) 6,529 (10) 855 (2) 17,122 (37)

UPCOMING KEYS TIMELINE BREAKDOWN OF REVENUE BY TYPE & SOURCE OPERATING EBITDA (THB mn) & MARGIN (%) TOTAL HOTEL KEYS

( ) = no of hotels Note: All figures above, save for operating EBITDA are based on management accounts which haven’t been subject to eliminations and adjustments

7,083 7,063 7,022 8,923 10,076 9,579 9,875 466 1,253 1,253 10,251 16,229 15,583 17,122 669 7,549 8,316 8,275 19,174 26,305 25,162 26,997 1Q '17 2Q '17 3Q '17 4Q' 17 1Q '18 2Q '18 3Q '18 4Q '18 Operational Keys Pending Keys 91 48 69 90 113 66 95 132 48 266 284 30 267 357 123 91 96 335 374 143 333 452 255 30.8% 15.3% 23.6% 24.5% 11.1% 21.7% 28.3% 16.0% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 100 200 300 400 500 600 700 800 900 1,000 1Q '17 2Q '17 3Q '17 4Q '17 1Q '18 2Q '18 3Q '18 4Q '18 Operating EBITDA Thailand Operating EBITDA Overseas Operating EBITDA Margin

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HOSPITALITY SEGMENT - OWNED AND OPERATING LEASED HOTELS OVERSEAS

11

REVENUE BREAKDOWN (THB mn) GROSS OPERATING PROFIT (THB mn) & MARGIN (%)

Note: All figures above are based on management accounts which haven’t been subject to eliminations and adjustments. Owned hotels include freehold & financial lease hotels

OCCUPANCY RATES OF KEY EUROPEAN MARKETS

Source: Eurostat, STR

Section 3: Appendix

HOTEL ADR, OCCUPANCY RATE & REVPAR (THB)

236 687 674 565 722 721 707 143 371 411 344 429 409 466 378 1,058 1,085 910 1,151 1,130 1,173 1Q '17 2Q '17 3Q '17 4Q '17 1Q '18 2Q '18 3Q '18 4Q '18 Owned Operating Leased 106 333 267 191 296 307 298 56 136 153 92 166 141 172 162 470 420 283 462 448 470 42.8% 44.4% 38.7% 31.1% 40.2% 39.6% 40.1% 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0%

• 100

200 300 400 500 600 700 800 900 1,000 1Q '17 2Q '17 3Q '17 4Q '17 1Q '18 2Q '18 3Q '18 4Q '18 Owned Operating Leased GOP Margin 2,860 2,839 2,835 2,710 2,913 2,878 2,949 2,085 2,089 1,872 1,749 2,054 2,039 1,937 73.0% 74.0% 65.7% 64.2% 70.5% 70.9% 65.7% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0%

• 500

1,000 1,500 2,000 2,500 3,000 3,500 4,000 1Q '17 2Q '17 3Q '17 4Q '17 1Q '18 2Q '18 3Q '18 4Q '18 ADR RevPAR Occupancy 40.3% 50.5% 61.7% 46.0% 45.3% 52.5% 64.3% 63.9% 38.8% 47.0% 53.7% 42.2% 37.0% 47.0% 53.5% 51.5% 32.8% 40.6% 49.4% 35.9% 34.3% 42.0% 49.4% 45.7% 1Q '17 2Q '17 3Q '17 4Q '17 1Q '18 2Q '18 3Q '18 4Q '18 Czech Rep Germany Poland

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HOSPITALITY SEGMENT - OWNED AND OPERATING LEASED HOTELS IN THAILAND

12

REVENUE BREAKDOWN (THB mn)

Note: All figures above are based on management accounts which haven’t been subject to eliminations and adjustments. Owned hotels include freehold & financial lease hotels

GROSS OPERATING PROFIT (THB mn) & MARGIN (%) OCCUPANCY RATES WITHIN THAILAND

Source: Bank of Thailand

Section 3: Appendix

HOTEL ADR, OCCUPANCY RATE & REVPAR (THB)

260 207 281 274 346 270 302 358

• 11

50 54 73 260 207 281 274 357 320 356 431 1Q '17 2Q '17 3Q '17 4Q '17 1Q '18 2Q '18 3Q '18 4Q '18 Owned hotels Operating Leased 116 70 96 126 141 83 107 150 3 10 12 25 116 70 96 126 144 93 119 175 44.5% 34.0% 34.2% 45.9% 40.5% 28.9% 33.3% 40.6% 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0%

• 50

100 150 200 250 300 350 400 1Q '17 2Q '17 3Q '17 4Q '17 1Q '18 2Q '18 3Q '18 4Q '18 Owned Operating Leased GOP Margin 3,385 2,762 2,847 3,549 3,556 2,884 3,170 3,842 2,785 2,128 2,354 2,883 2,972 2,160 2,562 2,946 81.2% 76.8% 83.0% 80.1% 82.9% 74.9% 80.8% 76.7% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0% 90.0%

• 500

1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 5,000 1Q '17 2Q '17 3Q '17 4Q '17 1Q '18 2Q '18 3Q '18 4Q '18 ADR RevPAR Occupancy 76.9% 73.1% 73.5% 74.9% 81.3% 75.9% 73.3% 75.3% 68.2% 54.1% 51.1% 65.2% 72.2% 60.2% 53.2% 67.7% 73.4% 67.5% 63.7% 69.4% 77.0% 71.4% 65.4% 71.1% 1Q '17 2Q '17 3Q '17 4Q '17 1Q '18 2Q '18 3Q '18 4Q '18 Central North Overall

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HOSPITALITY SEGMENT - VIENNA HOUSE MANAGEMENT PLATFORM

13 Section 1: Financial Performance - Hospitality

REVENUE BREAKDOWN (THB mn) KEY FACTORS

• 24 owned & leased hotels, 2 JV hotels and 9 third-party managed

hotels for a total of 35 operating hotels under management within the platform

• Significant increase in technical services fees from upcoming hotel

pipeline

• Strong performance of French and German hotels in particular
• 1 hotel completed renovation and now back to being fully operational
• 2 hotels still undergoing renovation

OPERATING EBITDA (THB mn) & MARGIN (%)

Note: All figures above are based on management accounts which haven’t been subject to eliminations and adjustments. Owned hotels include freehold & financial lease hotels

HOTEL ADR, OCCUPANCY RATE & REVPAR (THB)

21 91 122 63 109 119 117 1 6 5 3 5 3 15 25 60 69 63 74 84 93 47 157 196 129 188 206 224 50 100 150 200 250 300 1Q '17 2Q '17 3Q '17 4Q '17 1Q '18 2Q '18 3Q '18 4Q '18 Management Fee Technical Services Others 3 29 42 3 53 67 79 6.0% 18.4% 21.3% 2.3% 27.9% 32.4% 35.3% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 40.0% 45.0% 10 20 30 40 50 60 70 80 90 100 1Q '17 2Q '17 3Q '17 4Q '17 1Q '18 2Q '18 3Q '18 4Q '18 Operating EBITDA Operating EBITDA Margin 2,995 3,153 2,971 2,765 3,181 3,261 3,158 2,236 2,369 2,032 1,655 2,305 2,440 2,180 74.7% 75.1% 68.4% 59.9% 72.5% 74.8% 69.0% 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0% 90.0% 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 5,000 1Q '17 2Q '17 3Q '17 4Q '17 1Q '18 2Q '18 3Q '18 4Q '18 ADR RevPAR Occupancy

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OFFICE SEGMENT OVERVIEW

14 Section 1: Financial Performance - Office

REVENUE BREAKDOWN BY BUILDING (THB mn) EBITDA (THB mn) & MARGIN (%) NET FLOOR AREA (SQM) & BLENDED OCCUPANCY RATE

UNDERWOOD STREET TST TOWER (sqm) 8,747 8,747 8,747 8,747 8,747 8,747 8,747 8,747 2,370 2,370 2,370 2,370 2,370 2,370 2,370 16,115 16,064 16,061 16,067 100% 100% 100% 100% 100% 100% 100% 99% 0% 20% 40% 60% 80% 100% 120%

• 5,000

10,000 15,000 20,000 25,000 30,000 35,000 40,000 1Q '17 2Q '17 3Q '17 4Q '17 1Q '18 2Q '18 3Q '18 4Q '18 Gracechurch Underwood TST Tower Occupancy 39 38 37 42 39 57 38 41 1 4 2 2 6 28 30 32 39 39 41 43 47 85 68 73 1Q '17 2Q '17 3Q '17 4Q '17 1Q '18 2Q '18 3Q '18 4Q '18 Gracechurch Underwood TST Tower 29 27 31 6 30 59 39 42 74.4% 69.2% 75.6% 14.3% 63.8% 69.0% 57.4% 57.5%

• 200.0%
• 150.0%
• 100.0%
• 50.0%

0.0% 50.0% 100.0% 10 20 30 40 50 60 70 1Q '17 2Q '17 3Q '17 4Q '17 1Q '18 2Q '18 3Q '18 4Q '18 EBITDA EBITDA Margin

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RESIDENTIAL PROPERTY BUSINESS - SANSIRI JV

15 Section 2.2: Residential Property Business PARTNERSHIP ROADMAP

2015 2016

50:50 JV to develop a targeted THB 100bn worth of condominiums along current and future mass transit lines through the JV with Sansiri with an expected NPAT margin 10% and equity IRR 14%

2018

• The LINE Jatulak – Mo Chit

Project value: THB 5,815mn

• No. of units: 841
• The LINE Sukhumvit 71

Project value: THB 1,967mn

• No. of units: 291
• The LINE Ratchathewi

Project value: THB 2,978mn

• No. of units: 231
• The LINE Asoke-Ratchada

Project value: THB 3,057mn

• No. of units: 473
• The BASE Garden Rama 9

Project value: THB 2,339mn

• No. of units: 640
• The LINE Pradipat

Project value: THB 5,893mn

• No. of units: 981

2017

• The BASE Phetkasem 29

Project value: THB 2,013mn

• No. of units: 640
• The MONUMENT Thonglor

Project value: THB 6,251mn

• No. of units: 127
• The LINE Sathorn

Project value: THB 3,910mn

• No. of units: 327
• The LINE Sukhumvit 101

Project value: THB 4,653mn

• No. of units: 778
• KHUN BY YOO Thonglor 12

Project value: THB 4,065mn

• No. of units: 148
• The LINE Wongsawang

Project value: THB 4,842mn

• No. of units: 1,288

The LINE Wongsawang The LINE Sukhumvit 101 The LINE Jatujak-Mo Chit

Fully transferred

• The BASE Saphanmai

Project value: THB 2,921mn

• No. of units: 820
• The LINE Phahonyothin Park

Project value: THB 4,935mn

• No. of units: 880

2019

4 projects targeted totaling THB 7.6bn in project value

The LINE Sathorn

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17,981 6,090 8,150 3,741 2019 2020 2021 Total Presales Backlog

16

The LINE Ratchathewi

*Backlog as of 31 December 2018. Not equity adjusted

(THB mn) 1Q 2018 2Q 2018 3Q 2018 4Q 2018 2018 Value 769 804 108 778 2,459

• No. of

units 288 85 145 228 747

10,642 10,620 9,602 2,459 2015 2016 2017 2018

PRESALES BY QUARTER PRESALES BY YEAR PRESALES BACKLOG SCHEDULE

Section 2.2: Residential Property Business

(THB mn) (THB mn)

RESIDENTIAL PROPERTY BUSINESS - SANSIRI JV

*Net of cancellations

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CONTENTS

17 Section 1 Financial Performance Section 2 Operational Performance Section 3 Business Updates Section 4 Appendix

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GUIDANCE 2019

18

EBITDA Margin ≥20%

Total Revenue

+3 - 8% YoY

THB 7,200 - 7,500mn

Hospitality Revenue

+3 - 8% YoY

THB 6,200 - 6,500mn Office Revenue

+6 - 24% YoY

THB 300 - 350mn

Section 3: Appendix

Total CAPEX & Investments THB 1.9 – 2.2bn

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REVERSE STOCK SPLIT AND CAPITAL REDUCTION

19 Section 3: Business Updates Board of Directors Approved the transaction U City EGM record date U City EGM for shareholders’ approval Private placement (PP) subscription for rounding purpose Par value per share adjusted to THB 100 Rights adjustment of all warrants (U-W1 -> U-W4) Commence trading with new par value after reverse stock split 30 Aug 18 12 Oct 18 31 Oct 18 14 Sep 18 17 Oct 18 5 Nov 18 Commence trading with new par value of THB 3.2 after capital reduction 26 Dec 18 Creditor objection period (2 months)

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ORGANISATIONAL RESTRUCTURING PROGRAM

U CITY AND VIENNA HOUSE IS IN THE PROCESS OF RESTRUCTURING THE HOLDING STRUCTURE OF ITS SUBSIDIARIES AND AFFILIATES

20 Section 3: Business Updates

1 COST EFFICIENCY 2 IMPROVING CORPORATE STRUCTURE INTEGRATION FOLLOWING EBT OF UE 3 RATIONALISE REPORTING LINES AND MANAGEMENT OVERSIGHT 4 DELINEATE ASSETS FOR STRATEGIC FLEXIBILITY

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NEW HOTEL OPENING: EASTIN THANA CITY GOLF RESORT

21

• Officially opened on 1 December 2018
• 194-key freehold hotel

WHY THANA CITY? Located 10 mins drive from Suvarnabhumi International Airport at kilometer 14 on Bangna-Trad highway and near a future LRT station. Thana City Country Club

• ffers a range facilities, such as a par 72 Greg Norman-designed golf course,

renowned ChefMan Chinese restaurant and spaces to accommodate a range of events such as weddings, business meetings, seminars and corporate outings Section 2: Business Updates

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VIENNA HOUSE ASIA MILESTONE - VIENNA HOUSE VUNG TAU, VIETNAM

22

Date Launched 22 September 2018 Project Value THB 2,697mn

• No. of Units

820 Average Price per Unit THB 3.3mn Presales 16% as of 30 September 2018

Section 3: Business Updates

• 775 keys
• Managed by Vienna House Asia

Limited, a 30:70 JV company between Vienna House and AHS Hong Kong

• Rooms types include suites,

penthouses and pool villas

• Facilities include large swimming

pools, therapeutic onsen hot pool, championship tennis courts, ballroom, meeting rooms and retail areas

• F&B concept includes all-day

dining restaurant, fresh seafood market, café & tea room

• Vung Tau is the centre of

Vietnam’s offshore oil industry and related logistics and services hub with a population of around 330,000 people

• A destination of major business,

retail and recreation-related investment and features extensive beaches

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VHE LEIPZIG 205 KEYS VHE KRONBERG 96 KEYS VH MOKOTOW WARSAW 164 KEYS VHE RAUNHEIM 200 KEYS R.EVO MUNICH 607 KEYS

Section 3: Business Updates

EASTIN THANA CITY 194 KEYS EASTIN GRAND PHAYATHAI 394 KEYS 1 Dec 2018 2018 2019 2019 2020 2021 2021 NOW OPEN

Note: Excludes managed hotels

OWNED AND OPERATING LEASE EXPECTED FUTURE PIPELINE

A FURTHER 1,461 OWNED AND OPERATING LEASE KEYS WE’RE TARGETING TO BE OPERATIONAL BY 2021

23

NOW OPEN OPENING SOON

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BUSINESS UPDATES

14 ADDITIONAL DESTINATIONS THAT VIENNA HOUSE IS CURRENTLY LOOKING TO EXPAND TO 24

HAMBURG / DE RIGA / LV GLIWICE / PL DÜSSELDORF / DE VIENNA / AT WROCLAW / PL ROSTOCK / DE TALLINN / EE FLENSBURG / DE DUISBURG / DE ROTTERDAM / NL SCHLADMING / AT SCHAAN / LI

Section 3: Business Updates

BANGKOK / TH

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RENOVATION COMPLETED - VHE BRATISLAVA

25 Section 3: Business Updates

BEFORE AFTER

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RENOVATIONS ONGOING – VH DIPLOMAT PRAGUE

26

3Q 2018 2Q 2019 Start Completion

Section 3: Business Updates

BEFORE AFTER

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RENOVATIONS ONGOING - VH AMBER BALTIC

27

4Q 2018 2Q 2019 Start Completion

Section 3: Business Updates

BEFORE AFTER

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RENOVATION COMPLETED – UNDERWOOD STREET

28 Section 3: Business Updates

• Underwood Street underwent extensive renovations since March 2018, which was

completed in early February 2019. Negotiations with new tenants are ongoing

• Underwood Street features 3 Victorian-era 4-storey warehouses with a total NFA of

2,370 sqm

• Located less than 650 meters from Old Street Roundabout, known as ‘Silicon

Roundabout’ due to the increasing number of technology, media and telecommunications companies choosing to relocate to the area. The property also benefits from excellent transport links (underground, rail and bus services)

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CONSTRUCTION PROGRESS - VERSO INTERNATIONAL SCHOOL

29

CONSTRUCTION 25% COMPLETE AS OF DECEMBER

Section 3: Business Updates

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CONSTRUCTION PROGRESS – UNICORN (PHAYATHAI)

30

CONSTRUCTION 8% COMPLETE AS OF DECEMBER

Section 3: Business Updates

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SANSIRI JV FUTURE PIPELINE

31

THB 71BN

TOTAL PROJECT VALUE

12,665

UNITS

THB 5.6MN

AVERAGE SELLING PRICE PER UNIT

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PLAYING OUR PART IN HELPING TO REDUCE DUST EMISSIONS

32

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CONTENTS

33 Section 1 Financial Performance Section 2 Operational Performance Section 3 Business Updates Section 4 Appendix

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Hotel RevPAR 2018 YoY % Change in Euros

Source: STR

Paris +15.1% 2018F +12% Berlin +6.9% 2018F +6% Prague (0.2)% Warsaw (3.9)% Bucharest +4.0%

RevPAR +3.5% RevPAR (2.1)% RevPAR (0.6)% RevPAR (3.3)% RevPAR (4.2)% RevPAR +17.5% RevPAR +0.7% RevPAR (4.9)% Section 3: Appendix 34

Bratislava +0.8%

Europe Asia Pacific North America South America Middle East Northern Africa Southern Africa Australia & Oceania Eastern Europe

RevPAR +6.5%

Northern Europe

RevPAR +1.8%

Southern Europe

RevPAR +2.5%

Western Europe

RevPAR +5.5%

Czech Republic

RevPAR (0.7)%

Germany

RevPAR +2.4%

Poland

RevPAR +1.0%

Romania

RevPAR +6.1%

Slovakia

RevPAR +2.5%

Prepared by Investor Relations Department

U CITY PCL

Key FX Rates - YoY Development

EUR:PLN EUR:THB EUR:CZK GBP:THB

Section 3: Appendix 35

1.029 1.009 0.953 0.940 0.860 0.880 0.900 0.920 0.940 0.960 0.980 1.000 1.020 1.040 1.060 1.080 29-Dec-17 29-Jan-18 28-Feb-18 31-Mar-18 30-Apr-18 31-May-18 30-Jun-18 31-Jul-18 31-Aug-18 30-Sep-18 31-Oct-18 30-Nov-18 EUR:PLN EUR:CZK EUR:THB GBP:THB

Prepared by Investor Relations Department

U CITY PCL

Key FX Rates – QoQ Development

EUR:THB EUR:CZK EUR:PLN

Section 3: Appendix 36

GBP:THB 1.005 0.999 0.993 0.982 0.940 0.950 0.960 0.970 0.980 0.990 1.000 1.010 1.020 1.030 1.040 EUR:PLN EUR:CZK EUR:THB GBP:THB

Prepared by Investor Relations Department

U CITY PCL

37

ASSETS TYPE AGREED PRICE (THB MN) AVANI KHON KHAEN HOTEL 960.0 ANANTARA CHIANG MAI HOTEL 240.0* ANANTARA SERVICED SUITES SERVICED APARTMENT 110.0 KORAT LAND 690.0 CHARANSANITWONG LAND 510.0 CHONBURI LAND 7.0 PARK RAMINDRA CONDOMINIUM 330.0 PARK ARAN BOULEVARD COMMERCIAL 154.6 TOTAL 3,001.6 TOTAL STILL UNSOLD 2,337.0

Asset Disposed in 1Q 2018

ASSET DISPOSAL

PROGRESS OF ASSETS TO BE DISPOSED

* Excludes outstanding debts and interest owed that will also be acquired by the purchaser

Section 3: Appendix

Sales & Purchase Agreement signed

Prepared by Investor Relations Department

U CITY PCL

Project value Approximately THB 9.5bn Land Area 7.3 Rai or 1.2 Ha (11,749.6 sqm) GFA 120,400 sqm Location Adjacent to 2 mass transit stations: BTS Phayathai Station and Airport Rail Link Status Under construction Project period Approximately 48 months Construction period

Project Details 51 levels of mixed use complex building comprising retail, office, 4-star hotel and premium residences Retail NFA: 3,416 sqm Office NFA: 22,499 sqm Premium Residence 118 units NFA: 7,560 sqm Hotel 397 keys NFA: 20,714 sqm

3Q 2017 4Q 2021 Start Completion

THE UNICORN, PHAYATHAI

38 Section 3: Appendix

Prepared by Investor Relations Department

U CITY PCL

Project value Approximately THB 2.5bn Land Area 6.3 Rai or 1.0 Ha (10,148 sqm) Location O n the Chao Praya Riverside, Soi Charoenkrung 36, Bangrak, Bangkok Concept F

• cus on the harmony between the ancient

custom house and new building Management Company Inhouse brands and management platform Status Awaiting cabinet approval of new lease terms

Project Details A luxurious 5-star hotel project in a rare, historic, colonial-era heritage building located along magnificent Chao Praya Riverside,

• n Charoen Krung road.

Total Area NFA: 12,300 sqm World-Class Dining Experience 5-Star Luxurious Hotel

ROI CHAK SAM

39 Section 3: Appendix

Prepared by Investor Relations Department

U CITY PCL

A 50:50 joint venture between U City and Hong Kong Corporation who has extensive experience in International School to provide educational services for up to 1,800 students from grades 1 to 12

VERSO INTERNATIONAL SCHOOL AT THANA CITY

40 Project Details

Project value Approximately THB 2.5bn Land Area 109.8 Rai or 19.1 Ha (191,642 sqm) Location Thana City Concept Providing unique learning experience and paring modern technology and contemporary teaching techniques Status Land clearance and preparation Project period Approximately 36 months Construction period 2017 1Q 2020 Start Completion

Section 3: Appendix

Prepared by Investor Relations Department

U CITY PCL

Hotel Under Keys Country Hotel Under Keys Country

Freehold Operating Lease

1 Anantara Chiang Mai U City 111 Thailand 1 U Sathorn U City 86 Thailand 2 Avani Khon Kaen U City 195 Thailand 2 U Chiang Mai U City 41 Thailand 3 Eastin Thana City Golf Resort U City 194 Thailand 3 Customs House by Vienna House U City 80 Thailand 4 Eastin Grand Hotel Phayathai U City 394 Thailand 4 VHE Leipzig Vienna House 205 Germany 5 Eastin Grand Sathorn U City 390 Thailand 5 VHE Kronberg Vienna House 96 Germany 6 U Inchantree Kanchanaburi U City 50 Thailand 6 VH Andel’s Berlin Vienna House 557 Germany 7 VH Diplomat Prague Vienna House 398 Czech Rep 7 VHE Berlin Vienna House 152 Germany 8 VHE Angelo Pilsen Vienna House 144 Czech Rep 8 VH QF Dresden Vienna House 95 Germany 9 VHE Angelo Katowice Vienna House 203 Poland 9 VHE Raunheim Vienna House 200 Germany 10 VHE Cracow Vienna House 220 Poland 10 R.Evo Munich Vienna House 607 Germany 11 VHE Airport Bucharest Vienna House 176 Romania 11 VH Andel’s Cracow Vienna House 159 Poland 12 VHE Amberg Vienna House 110 Germany 12 VH Warsaw Vienna House 164 Poland 13 VHE Bad Oeynhausen Vienna House 146 Germany Total Operating Lease 12 Hotels 2,442 14 VHE Braunschweig Vienna House 176 Germany 15 VHE Castrop-Rauxel Vienna House 84 Germany 16 VHE Coburg Vienna House 123 Germany

Managed Hotels

17 VHE Guenzburg Vienna House 100 Germany 1 VH Martinspark Dornbirn Vienna House 98 Austria 18 VHE Bratislava Vienna House 167 Slovakia 2 Marriott Minsk Vienna House 217 Belarus Total Freehold 18 Hotels 3,354 3 VH Andel’s Prague Vienna House 290 Czech Rep

Financial Lease

4 Angelo by VH Prague Vienna House 168 Czech Rep 1 VH Amber Baltic Vienna House 192 Poland 5 VH Dvorak Karlovy Vary Vienna House 126 Czech Rep 2 VH Andel’s Lodz Vienna House 277 Poland 6 VH Dream Castle Paris Vienna House 397 France 3 VHE Landsberg Vienna House 103 Germany 7 VH Magic Circus Paris Vienna House 396 France 4 VHE Limburg Vienna House 99 Germany 8 Holiday Inn Munich Leuchtenbergring Vienna House JV 279 Germany 5 VHE Neckarsulm Vienna House 95 Germany 9 Holiday Inn Munich Westpark Vienna House JV 207 Germany 6 VHE Trier Vienna House 105 Germany 10 Angelo by VH Ekaterinburg Vienna House 211 Russia 7 VHE Wuppertal Vienna House 130 Germany 11 Liner Airporthotel Ekaterinburg Vienna House 152 Russia Total Financial Lease 7 Hotels 1,001

OUR HOTEL PORTFOLIO

A Eurasian Hotel Business with 98 Hotels totaling 26,997 Keys

41 Section 3: Appendix

Prepared by Investor Relations Department

U CITY PCL

Hotel Under Keys Country Hotel Under Keys Country Managed Hotels Managed Hotels 12 U Tropicana Alibaug AHS 32 India 38 Travelodge Sukhumvit 11 AHS JV 224 Thailand 13 Eastin Residences Vadodara AHS 44 India 39 Travelodge Pattaya Central AHS JV 164 Thailand 14 Eastin Easy Aishwarya Talegaon AHS 90 India 40 Travelodge Jomtien AHS JV 150 Thailand 15 Eastin Easy Pen AHS 350 India 41 Travelodge Phuket Town AHS JV 180 Thailand 16 Eastin Easy Vita AHS 50 India 42 Travelodge Jatujak AHS JV 200 Thailand 17 U Paasha Seminyak Bali AHS 99 Indonesia 43 Travelodge Laguna Phuket AHS JV 200 Thailand 18 U Janevalla Bandung AHS 119 Indonesia 44 Travelodge Niman Chiang Mai AHS JV 150 Thailand 19 U Lombok AHS 110 Indonesia 45 U Mui Nhe AHS 108 Vietnam 20 Eastin Ashta Resort Canguu Bali AHS 130 Indonesia 46 U Phu Quoc AHS 150 Vietnam 21 U Mandardo AHS 120 Indonesia 47 U Riverside Hoi An AHS 150 Vietnam 22 Eastin Residences Muscat AHS 50 Oman 48 U Danang AHS 154 Vietnam 23 Mountain Lodge By U AHS 7 Thailand 49 Eastin Grand Hotel Saigon AHS 268 Vietnam 24 U Sukhumvit AHS 82 Thailand 50 Eastin Hotel Saigon AHS 310 Vietnam 25 U Zenmaya Phuket AHS 50 Thailand 51 Eastin Lakeside Hotel Hanoi AHS 90 Vietnam 26 U Pattaya AHS 44 Thailand 52 Eastin Hotel Nha Trang AHS 180 Vietnam 27 U Niman Chiang Mai AHS 150 Thailand 53 Eastin Grand Hotel Panorama Nha Trang AHS 1,056 Vietnam 28 U Khao Yai AHS 63 Thailand 54 Eastin Grand Resort Danang AHS 300 Vietnam 29 U Jomtien AHS 63 Thailand 55 Eastin Hotel & Residences Hanoi AHS 200 Vietnam 30 U Kata Phuket AHS 86 Thailand 56 Eastin Hotel Phat Linh Halong AHS 334 Vietnam 31 U Hua Hin AHS 132 Thailand 57 Eastin Grand Hotel Vung Tau AHS 4,000 Vietnam 32 U North Pattaya AHS 270 Thailand 58 Eastin Grand Hong Van Halong AHS 380 Vietnam 33 U Bang Rak Samui AHS 60 Thailand 59 Skye By Travelodge Nha Trang AHS JV 4,300 Vietnam 34 Eastin Hotel Makkasan AHS 280 Thailand 60 Travelodge Vung Tau AHS JV 400 Vietnam 35 Eastin Hotel Tan Chiang Mai AHS 119 Thailand 61 Vienna House Vung Tau VH-AHS JV 775 Vietnam 36 Eastin Hotel Harbour Bangkok AHS 456 Thailand Total Managed 61 Hotels 20,200 37 Eastin Residences Sri Racha AHS 180 Thailand

OUR HOTEL PORTFOLIO

42 Section 3: Appendix

Prepared by Investor Relations Department

U CITY PCL

PREFERRED SHARES TERMS

7% Dividend Yield Committed Over 5 years

43

TYPE preferred shares with specified dividend ISSUE DATE 5 March 2018 SPECIFIED DIVIDEND THB 0.22 per share per calendar year DIVIDEND ENTITLEMENT for 5 years at dividend rate dividend accumulates at the difference between specified dividend and actual dividend paid until fully paid VOTING RIGHTS 1 share : 1 vote after full payment of cumulative dividend or after 31 December 2027; 10 shares : 1 vote CONVERSION RIGHTS after 31 December 2022 preferred shares are convertible to ordinary shares on quarterly basis CONVERSION RATIO 1 preferred shares : 1 ordinary share ALLOCATION to existing shareholders at the ratio of 5 existing shares : 4 new preferred shares MAXIMUM NO. ISSUED SHARES up to 560,463,736,238 shares of which:

• up to 26,384,191,176 (offered to BBL)
• up to 470,197,192,120 (offered to existing shareholders)
• up to 63,882,352,942 (offered to UE)

ACTUALLY ISSUED

• 374,057,516,140 shares (66.7% of maximum)

Section 3: Appendix

Prepared by Investor Relations Department

U CITY PCL

U-W3 & U-W4 WARRANTS TERMS

Sweetener For Preferred Share Issue

44

TICKER U-W3 U-W4 TERMS 5 years 5 years ISSUE DATE 16 March 2018 16 March 2018 EXPIRY DATE 15 March 2023 15 March 2023 EXERCISE PERIOD 15 March 2019 - 15 March 2023 (Quarterly) 15 March 2019 - 15 March 2023 (Quarterly) EXERCISE RATIO 1 warrant : 0.01 ordinary share 1 warrant : 0.01 ordinary share EXERCISE PRICE THB 5 THB 6 ALLOCATION to preference shareholders at the ratio of 2 preferred shares : 1 warrant to preference shareholders at the ratio of 2 preferred shares : 1 warrant

• NO. ISSUED

WARRANTS up to 49,501,008,065 warrants (maximum) 45,133,272,059 warrants (outstanding) up to 236,119,919,590 warrants (maximum) 141,895,485,954 warrants (outstanding) WARRANT PRICE

• TRADEABLE ON SET

No Yes EXPECTED PROCEEDS THB 2,256.7mn (outstanding) THB 8,513.7mn (outstanding)

Section 3: Appendix

Prepared by Investor Relations Department

U CITY PCL

U CITY WARRANTS

U-W1 & U-W2 Warrants

45

TICKER U-W1 U-W2 TERMS 5 years 5 years ISSUE DATE 7 November 2014 20 April 2015 EXPIRY DATE 6 November 2019 6 November 2019 EXERCISE PERIOD 30 December 2016 - 6 November 2019 (Quarterly) 30 December 2016 - 6 November 2019 (Quarterly) EXERCISE RATIO 1 warrant : 0.01 ordinary share 1 warrant : 0.01 ordinary share EXERCISE PRICE THB 6 THB 4.7 ALLOCATION to ordinary shareholders at the ratio of 1 ordinary share : 1 warrant to ordinary shareholders at the ratio of 2 ordinary shares : 1 warrant

• NO. ISSUED

WARRANTS up to 180,637,710,882 warrants (maximum) 180,628,313,882 warrants (outstanding) up to 100,043,438,606 warrants (maximum) 100,043,438,606 warrants (outstanding) WARRANT PRICE

• TRADEABLE ON SET

Yes No EXPECTED PROCEEDS THB 10,838.3mn (maximum) THB 10,837.7mn (outstanding) THB 4,702.0mn (outstanding)

Section 3: Appendix

Prepared by Investor Relations Department

U CITY PCL

CAPITAL REDUCTION TRANSACTION OVERVIEW

46 Unit Pre Reverse Stock Split and Capital Reduction (Separate F/S as of 30 June 2018) Post Reverse Stock Split 100:1 and Capital Reduction* Registered capital THB mm 1,682,739 44,900 Paid up capital THB mm 935,429 29,934 Share discount THB mm (895,601)

• Retained earnings

(Retained loss/deficit) THB mm (9,519) (25)** Other components THB mm (349) 10 Total shareholders’ equity THB mm 29,960 29,919 Registered shares mm shares

1,682,739 14,031

Paid up shares mm shares 935,429 9,354 Par value/share THB 1.00 3.20 Trading price/share THB 0.03 3.00 * Based on management accounts as of 30 Aug 2018 **Including operating loss, impairment of investment in NMG and allowance for impairment of investment in BMP during 1 July – 30 Aug 2018 Section 3: Appendix