WHA Corporation PCL Opportunity Day (March 2017) Year end 2016 - - PowerPoint PPT Presentation

WHA Corporation PCL

Opportunity Day (March 2017)

Year‐end 2016 Result

1

“Your Ultimate Solution Partner”

Disclaimers

WHA Group

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

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

any jurisdiction nor should it or any part of it form the basis of, or be relied upon in any connection with, any contract or commitment whatsoever. In addition, this presentation contains projections and forward-looking statements that reflect the Company's current views with respect to future events and financial performance. These views are based on a number of estimates and current assumptions which are subject to business, economic and competitive uncertainties and contingencies as well as various risks and these may change over time and in many cases are outside the control of the Company and its directors. You are cautioned not to place undue reliance on these forward looking statements, which are based

• n the current view of the management of the Company on future events. No assurance can be given that future events will occur, that projections

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

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Agenda I. WHA Group Overview IV. Recent Developments & Key Events II. Summary of Financial/Business Performance V. YE 2016 Financial Performance III. Business Overview iv) Digital Infrastructure Business iii) Utilities & Power Business ii) Industrial Estate Business

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VI. Appendix – Financial Statements i) Logistics & Industrial Properties Business Appendix – Eastern Economic Corridor (EEC)

About WHA Group

WHA Group Overview

• Largest fully-integrated industrial and logistic facility developer

in Thailand with full range of complement business supported by

world-class customers

• Thailand’s No.1 Industrial Developer with the largest market share

since 2008.

• Pioneer of the Built-to-Suit concept with the world-class standard

and Industrial Clusters concept to the Thai market.

• Exclusive Provider of Utilities in all Operating Estates and an

active power investor to capture the growth in power business.

• Our core competency lies in best-in-class quality, prime logistic

location, and the integrated one-stop service solution.

• WHA is a SET-50 listed company with a market capitalization of THB

43.8 billion/1.

Remarks:/1 Information as of February 21, 2017

WHA GROUP AT A GLANCE 4

New Branding

5

WHA Group

Our 4 Integrated Business Hubs

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WHA Group Overview

“#1 Logistics Developer

• ffering Varieties of Premium

Facilities uniquely serving our Clients Needs”

Logistics

“#1 Industrial Utilities Provider and Active Strategic Power Investor “

Utilities and Power

“Group Spearhead for the Upcoming New Digital Economy”

Digital

“#1 Industrial Estate Developer delivering World-Class Solutions to Industrial Customers”

Industrial Development

• Existing 9 operating and 3

developing and new expansion IEs in strategic cluster to serve key sectors in Thailand ‐ total of 46,434 rais (18,574 acres; 7,429 Ha)

• Net sellable area approx. 10,000

rais (3,950 acres; 1,600 Ha) consisting of 3,800 rais of

• perating IE and 6,200 rais

developing IE

• Potential geographical expansion

in cross‐border provinces and

• verseas investment

Group Structure

WHA Group Overview

• Built‐to‐Suit Warehouse and Factories

(BTS): World‐class standard warehouses and factories built to specific client’s requirements

• Warehouse Farm: Combination of Built‐to‐

Suit and Ready‐Built Projects at the same site

• Built‐to‐Own (BTO):Warehouse or factory

customized to client’s special needs for purchase

• Built‐to‐Suit Office: Offices that are

customized to customers’ specific requirements i.e. Multi‐purpose offices

• Ready‐Built factory and warehouse in IEs

and logistics park

• Exclusive utilities provider in the

industrial estates with high margin products and steady growth

• Total demand of raw water,

potable/clarified water and waste water treatment approx. 94 mm m3/year

• Active power investor with strategic

partnership with reputable partners i.e. Glow Energy, Gulf Energy, B‐ Grimm and Suez

• Approx. 350 Operational Equity MW

in 2016. Approx. 540 Operational Equity MW by 2019 from recent joint venture arrangements

• To become one‐stop service for Data

Center developer and provider by way of business collaboration with reputable partners

• To provide comprehensive service

by installation of fiber optic in industrial estates and part of Local Loop business

• Be part of the Government Initiative

to promote digital economy

Industrial Estate Hub Utilities & Power Hub Logistics Hub Digital Platform Hub

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More than 2.1 million sq.m. leasable area under owned and managed assets Existing 9

• perating

with 3 developing IEs with net sellable area approx. 10,000 rais (3,950 acres; 1,600 Ha) Water: Approx. 94mm m3/year Power: Approx. 540 Equity MW with approx. 350 Operational equity MW Upcoming Tier‐3 Data Centers Infrastructure with comprehensive service and solution

WHA is Thailand’s leading fully Integrated Industrial & Logistics Facilities Developer, capturing wide ranging and complementary businesses i.e. Utilities, Power and Digital Infrastructure provided to our customers

Group Structure – Operating Companies

WHA Group Overview

WHA KPN Alliance Central WHA Alliance WHAPF

NAV per unit –THB 10.07/1 Paid-Up Capital–THB 9,390.6 mm

WHART

NAV per unit –THB 9.811 Paid-Up Capital–THB 9,158.1 mm/2

WHABT

NAV per unit –THB 9.98/1 Paid-Up Capital–THB 1,982.1 mm/2

15.00% 15.00% 15.00%

Remarks: /1 NAV per unit as of February 21, 2017 /2 Including the 3rd capital reduction in 2016 /3 Held by Hemaraj Land and Development PCL.

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WHA Daiwa Logistics Property WHA Infonite

Registered – THB 185 mm Paid-up – THB 64.8 mm

Hemaraj Land and Development PCL.

Registered – THB 6,000mm paid-up Cap – THB 3,882mm

98.54% 94.97%

Core Business

WHA Corporation PCL

Registered – THB 1,567.8 mm paid-up Cap – THB 1,432.2 mm

WHAUP/3

Registered – THB 3,825 mm paid-up Cap – THB 3,200 mm

99.99%

Property Funds and REITs

HPF/3

NAV per unit –THB 10.191 Paid-Up Capital–THB 4,700.0 mm

22.95% HREIT/3

NAV per unit – THB 10.08//1 Paid-Up Capital–THB 5,693.6 mm

15.00%

JV Collaborations

Gheco-One Glow IPP Houy Ho Power GJP NLL Gulf Solar WHA Gunkul Bowin Clean Energy

JV Collaborations – Utilities & Power/3 65.00% 50.00% 51.00% 35.00% 5.00% 12.75% 25.01% 25.01% 75.00% 25.01%

Chonburi Clean Energy

33.33%

WHA Hemaraj Cienco 4 Joint Stock Company/3

80.00%

Group Asset Management Platform

WHA Group Overview

Asset Type

Built-to-Suit warehouse/ factory Built-to-Suit warehouse/ factory Ready-Built factory/ warehouse Office building Ready-Built factory/ warehouse

Paid-up Capital

THB 9,158.1 mm THB 9,390.6 mm THB 4,700.0 mm THB 1,982.1 mm /3 THB 5,693.6 mm

Total Fund Raised

THB 13,961.4 mm THB 9,932.8 mm THB 4,700.0 mm THB 2,525 mm THB 8,018.6 mm

NAV per unit/2

THB 9.81 THB 10.07 THB 10.19 THB 9.98 THB 10.08

Market Price per unit/4

THB 9.80 THB 10.10 THB 7.75 THB 9.80 THB 9.90

Established Year

2014 2010 2013 2015 2016

Ownership

WHA holds 15% WHA holds 15% Hemaraj holds 22.95% WHA holds 15% Hemaraj hold 15%

Property Manager

WHA Corporation PCL. WHA Corporation PCL. Hemaraj Land And Development PCL. CBRE/ WHA Corporation PCL. Hemaraj Land And Development PCL.

REIT Manager

WHA Real Estate Management Co., Ltd. /5

• WHA Real Estate

Management Co., Ltd. /5 Hemaraj REIT Management Co., Ltd. /6

WHART

/1 Information as of February 21, 2017 /2 NAV per unit as of February 21, 2017 /3 Including the 3rd capital reduction in 2016

WHA completed WHART capital increase and also set up HREIT in 2016. Currently WHA Group have 2 property funds and 3 REITs with the total fund raised approx. THB 39,137.8 mm/1.

HREIT HPF WHABT WHAPF

/4 Information as of February 21, 2017 /5 WHA holds 99.99% in WHA Real Estate Management Co., Ltd. /6 Hemaraj Land And Development PCL. holds 99.99% in Hemaraj REIT Management Co., Ltd.

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Remarks:

Shareholding Information

WHA Group Overview

Shareholding Information Major Shareholder/2

Shar eholder

• No. of Shar

e /3 % 1) WHA Holding Co., Ltd. 2,979,083,491 20.8 2) Ms. Jareeporn Jarukornsakul 1,624,989,569 11.4 3) Mr. Somyos Anantaprayoon 1,090,894,523 7.6 4) UBS AG HONG KONG BRANCH 422,536,360 3.0 5) CREDIT SUISSE AG, SINGAPORE BRANCH 650,337,000 4.5 6) STATE STREET BANK EUROPE LIMITED 1,344,699,515 9.4 5) Mr. Sompong Chonkadeedumrongkul 353,706,700 2.5 8) Thai NVDR Co., Ltd. 308,958,665 2.2 9) Ms. Jaruwan Jarukornsakul 292,398,100 2.0 10) SCB Securities 252,118,200 1.8

• Major shareholder 47.3 %
• Other pre‐IPO shareholder /1

6.2%

• Post‐IPO Investors 46.5%

Share Overview

Remarks:

portion .

major shareholders shares are hold via UBS AG Hong Kong Branch and Credit Suisse AG Singapore Branch.

Ticker Reuter WHA.BK Ticker Bloomberg WHA TB Par Value THB 0.1 Market Capitalization/5 THB 43,826.64 mm Market Capitalization USD 1,254 mm Average 1‐Year Daily Turnover THB 251.62 mm Share Issued (share) 14,322,430,077 12‐Month High/Low Price THB 3.70/2.62 Foreign Limit 49% Dividend Policy ≥40% of Net profit

Major Shareholder /4

Paid-up Capital (THB 1,432.2 mm) 10

Agenda I. WHA Group Overview IV. Recent Developments & Key Events

• II. Summary of Financial/Business Performance

V. YE 2016 Financial Performance III. Business Overview iv) Digital Infrastructure Business iii) Utilities & Power Business ii) Industrial Estate Business

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VI. Appendix – Financial Statements i) Logistics & Industrial Properties Business Appendix – Eastern Economic Corridor (EEC)

Summary of Financial Performance 2016

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Summary of Financial/Business Performance

2016 PERFORMANCE

• Total revenue increased 52% from 2015 to THB 18,319 mm in 2016, mainly due to sale of assets into REITs i.e. WHART

and HREIT; totaling to THB 10,424 mm.

• EBIT increased 41% YoY to THB 6,415 mm in 2016. EBIT Margin stood at 35% for 2016.
• Net profit of THB 2,898 mm for 2016 or an increase of 48% YoY, while net profit margin stayed constant at 16%.

48% YoY increase in net profit was a result of a dramatic increase in revenue from sale of assets into REITs

Unit: THB mm

Summary of Business Performance 2016

Summary of Financial/Business Performance

Industrial Hub

• No. 1 by Land Sale with more

than 30% consistent market share over the past decade In 2016, the group

• f

companies sold industrial estate land total of 835 rais /1 In 2016, industrial estate land sale generated revenue

• approx. THB 2,426 mm

2017YTD/2 we have already secured land sale of 486 rais

Utilities & Power Hub

Utilities Business – Driven by the demand in

• Raw and industrial water, grew at

2.0%

• Waste water management, grew at

1.5% Power Business ‐ The company group currently holds stakes in 7 power projects with approx. 350 operating equity MW. The company group also has signed PPA for 6 conventional power plant projects with additional 190 operating equity MW For renewable, the company also has a PPA for waste to energy project with 2.3 equity MW Total income generated from the Utilities & Power Hub is THB 2,969 mm, which consist of

• Income generated from utilities

service of THB 2,004 mm

• Share of profit from investment in

a minority shares

• f

power business of THB 965 mm

Digital Hub

2 Data Center will be developed

• f

approx. 300 racks in 2 locations i.e. Vibhavadi and Bangna. Complimentary services to Data Center have already started its

• peration

e.g. System Integration Started construction of FTTx (Local Loop) in 6 locations of Hemaraj Industrial Estate.

Logistics Hub

During 2016, the group

• f

companies secured additional new contracts of approx. 141,581 sqm. which consists of:

• Built‐to‐Suit and warehouse

farm (WHA): approx. 105,986 sqm.

• Ready‐Built (Hemaraj):
• approx. 35,595 sqm.

Revenue contribution from rental properties in 2016 worth approx. THB 1,654 mm increased from THB 1,402 mm in 2015 In 2016, the company group has completed 2 asset monetization

• Asset monetization to

WHART: Fund raising of THB 4,409.7 mm /3, revenue of THB 4,145 mm

• Asset monetization to HREIT:

Fund raise of THB 8,018.6 mm, revenue of THB 6,279 mm

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Remark: /1 Including land used for rental business /2 As of Feb 22, 2017 /3 Including set up cost of THB 219.7 mm

Key Business Plan in 2017

Industrial Hub Utilities & Power Hub Digital Hub Logistics Hub

Balancing growth of auto and non‐auto segments

Newly initiative policy (EEC) to spur up Foreign Direct Investment – in effect from January 2017 due to the exercise of Section 44. The new initiative features new BOI schemes and

• ther

technological incentives More diversify industry base between auto and non‐auto segments

Maintain No.1 Built‐to‐Suit logistics facilities developer Enhance recurring income from the best utilization of industrial estate to serve customer requirement

Utilities

• Gradually change the product mix to

potable water (replacing raw water), which are more higher margins.

• Expand outside the IEs, focusing on

municipal area, having demand for utilities near the IE.

• To develop natural gas distribution

and local loop fiber optic Power

• SPPs development is on plan with

new SPP targeted to COD in 2017‐ 2019 of 6 SPPs

To become one‐stop service for Data Center developer

To differentiate the data center with the flexible locations in prime area and Tier‐3 like technology as well as the comprehensive common facilities solution to capture wide range of customers

Financial Perspective

• Pre-sale approx.

1,000 – 1,100 rais per annum on average

• Pre-leased/ new contract

area approx. 200,000 - 250,000 sq.m.

• Approx. 300 racks in 2

locations is to be developed within this year with managed services as part of the comprehensive service provided to customers

To optimize the capital structure and minimize the interest cost by way of loan refinance 1 2 3

• Targeted Gearing Ratio – not

exceed 1.5x

• CAPEX approx. THB 7,000 –

7,300 mn Continuous monetization to WHART and HREIT

• Planned Conversion and merger of WHART

and WHAPF

• Monetization of BTS warehouse and factory

to WHART and RBF/RBW to HREIT in 2017 To periodically issue P/N and B/E along with long‐term bond to minimize the cost of funding

Continue to capitalize on the early stage of the modernized warehouse and distribution center Synergy with Hemaraj regarding the BTS factory customer base in high value sectors e.g. automotive Large scale

• f

BTS factories are expected to finalized in strategic locations Explore sale and leaseback

• pportunities as an inorganic growth
• ption to enhance logistic properties

portfolio

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Summary of Financial/Business Performance

Optimize the group capital structure aftermath of IPO of WHAUP

• Additional equity MW which

will be COD in FY2017 is

• approx. 128.8 MW from 4
• SPPs. Commencement of

trial solar rooftop project is also on plan.

Agenda I. WHA Group Overview IV. Recent Developments & Key Events

• II. Summary of Financial/Business Performance

V. YE 2016 Financial Performance III. Business Overview iv) Digital Infrastructure Business iii) Utilities & Power Business ii) Industrial Estate Business

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VI. Appendix – Financial Statements i) Logistics & Industrial Properties Business Appendix – Eastern Economic Corridor (EEC)

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

294,261

Overview

Logistics & Industrial Properties Business

Unit: Sqm.

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

• Built-to-Suit distribution center and warehouse in prime location to

help customers optimize long-term logistics cost

• Built-to-Suit factory with cross referral of customers from HEMRAJ
• esp. those in high value sectors e.g. automotive
• Sophisticated Built-to-Suit product e.g. cold storage, multi-temp DC,

and E-Commerce DC

• Ready-Built factory and warehouse in IEs and logistic parks
• Geographical expansion e.g. Indonesia and Vietnam

Total

2,115,723

1,975,792

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Asset Under Management Group‐Owned assets and preleased

2017 Target

Development of the large land plots (Bangna‐Trad and Wangnoi) for BTS Customers Second Overseas expansion in Indonesia Enter into sale‐and‐lease‐back projects

Logistics Hub ‐ Business Strategy

Further initiate the BTS project into Thai logistics market by utilizing the credentials, expertise and long‐standing relationships with all customers Expand to ASEAN Countries and new area including Indonesia, Vietnam, Myanmar, Malaysia and Cambodia by leveraging on group business Capitalize on government policy focusing on high‐value industry clusters e.g. multi‐ temp Facilities, Automation Robotics and e‐commerce Explore sale‐and‐lease‐back opportunities as an inorganic growth option to enhance logistic properties’ portfolio 17

1 2 3

Business Strategy

Current Positioning

Pioneer and leader of the Built‐to‐Suit (BTS) concept with the world‐class standard and Industrial Clusters concept to the Thai market

Current Positioning

Pioneer and leader of the Built‐to‐Suit (BTS) concept with the world‐class standard and Industrial Clusters concept to the Thai market

Indonesia Thailand

Logistics & Industrial Properties Business

4 1 2 3

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Logistics Properties ‐ Performance

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

294,261 389,982 147,086 256,434 258,330 152,532

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

63,159 207,043 101,531 18,565 266,829 233,030 255,462 762,254 557,089 220,763

1,268,411

219,242 64,797 200,973 921,395

1,406,406

Area Completed– Area that currently generates revenue Area Available for Lease – Area that is available to serve immediate demand Area Pre‐Leased – Area that is leased before the construction is finished Area Sold to WHAPF/WHART/WHABT – Area that is sold to the property fund or REIT

Developed/ Developing & Occupied area for 2006- 2016

OR

100% 100% 100% 100% 100% 100% 100% 100% 80% 92% 76%

 During Q4 2016, WHA secured pre‐lease area/ new contracts for Built‐to‐Suit, warehouse farm and RBF/RBW totals 45,553 sqm.  During 2016, WHA secured pre‐leased area/ new contracts for Built‐to‐Suit, warehouse farm and RBF/RBW totals 141,581 sqm.  In addition to owned development project, we also have the potential sale and leaseback projects more than 110,000 sqm. in pipeline.  During 2016, WHA sold assets to WHART with total leasable area of 159,141 sqm.

Unit: Sqm.

Logistics & Industrial Properties Business

92%

Overall OR for asset under management (including WHAPF, WHART and WHABT)

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Logistics Location Map

Logistics & Industrial Properties Business Ice

U-Tapao Airport Bangkok Port Laem Chabang Port Map Ta phut Port

Bangna-Trad K.M.19 Bangna-Trad Km.18 Bangna-Trad Km.19 Lardkrabang Chonburi Bangna-Trad Km.20 Saraburi Amata City Bang pa-in Wang-Noi K.M.61

Outer East Bangkok Zone Bangna

• TradRd, K.M.18
• ‐ K.M.23

(Chonburi) ) (Lardkrabang)

• Convenient access to the City Center of Bangkok,

Suvannabhumi Airport, and Laemchabang Seaport

Industrial Estate Zone (Hemaraj , Saraburi ) AmataCity, Rayong) )

• Tax privileges from BOI
• Comfortable access to Suvannabhumi Airport

and Laemchabang Seaport

2

Outer North Bangkok Zone (Bang Pa

• in, Ayuthaya

Wangnoi , Ayuthaya)

• A logistic hub to North and Northeast region
• f Thailand

Remark: Portfolio as of 31 December 2016

Built-to-Suit project Warehouse Farm project WHAPF/WHART Port Airport

Bangna-Trad Km.23

3 1

Prachinburi Bangna-Trad Km.18 Chonlaharnpichit Laemchabang

4

Rama II

140 rais 99 rais 11 rais 217 rais 155 rais 137 rais 79 rais 190 rais 200 rais 49 rais 30 rais 14 rais 35 rais 55 rais 69 rais

Total = 1,363 rais Total = 211 rais Total = 176 rais Outer South Bangkok Zone (SamutSakorn )

• A logistic hub for cold storages

Total Land

2,144 Rais

WHA Group

1,071 Rais

WHAPF/WHART

1,073 Rais

135 rais

Up-Country (Khonkaen , Surathani , Lumpoon )

• To serve client’s business expansion

5

Total = 254 rais Total = 140 rais

Lardkrabang

35 rais

Bangna-Trad Km.23

65 rais 48 rais

Saraburi Amata City

13 rais

Bangna-Trad Km.7

6 rais

Chonburi

120 rais

Lam Luk Ka

79 rais

Amata City

2 5 rais

Bang Bua Thong 19 rais

Logistics Properties ‐ Selected Well‐Known Tenant Profile

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Logistics & Industrial Properties Business

Logistics Properties ‐ Selected Tenant Profile (Cont’d)

WHA WHAPF WHART WHA

29.6% 25.7% 19.6% 15.7% 8.4% 1.1%

Thai Japan Europe Asia(Ex. Japan, Thai) USA Other

41.1% 27.8% 21.6% 9.5%

FMCG&Healthcare 3PL Manufacturer Other

38.6% 33.3% 14.5% 13.6%

FMCG&Healthcare 3PL Other Manufacturer

32.4% 22.2% 20.2% 18.8% 6.0% 0.4%

Europe Japan Thai Asia(Ex. Japan, Thai) USA Other

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Logistics & Industrial Properties Business

Remarks: Information as of 2016

22

Industrial Properties ‐ Performance

Our industrial properties performance remains of high stability despite slowdown of Thai economy and poor investment sentiment

• At the end of 2016, total RBF and RBW rented area under HRD is 66,036 sqm and 23,883 sqm respectively.
• At the end of 2016, there were 99,378 sqm under HPF.
• At the end of 2016, total RBF and RBW rented area under HREIT is 146,204 sqm and 69,988 sqm respectively.
• During 2016, we obtained the pre‐leased/new contract area of RBF/RBW totals 35,595 sqm

RBF Rented Area RBW Rented Area

Logistics & Industrial Properties Business

16,820 72,145 82,435 100,082 23,883 69,988 16,820 72,145 82,435 100,082 93,871 20,000 40,000 60,000 80,000 100,000 120,000 2012 2013 2014 2015 2016 Sqm RBW under Hemaraj RBW under HREIT Total 159,038 235,809 175,274 192,252 193,608 66,036 122,094 109,818 105,978 99,378 146,204 159,038 235,809 297,368 302,070 299,586 311,618 50,000 100,000 150,000 200,000 250,000 300,000 350,000 2011 2012 2013 2014 2015 2016 Sqm RBF (HRD) RBF (HPF) RBF (HREIT) Total (HRD)

23

Industrial Properties Location Map

Logistics & Industrial Properties Business

HRD HPF HREIT HRD

36% 22% 11% 11% 9% 9% 2%

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

38% 19% 12% 12% 5% 14%

Auto&Parts Logistic Electronic Consumer Industrial Service Other

30% 26% 18% 13% 13%

Auto&Parts Logistic Other Consumer Packaging

34% 25% 20% 13% 8%

Japan USA Europe Australia Asia(Exclu. Japan)

24

Logistics & Industrial Properties Business

Remarks: Information as of 2016

Industrial Properties ‐ Tenant Profile

Agenda I. WHA Group Overview IV. Recent Developments & Key Events

• II. Summary of Financial/Business Performance

V. YE 2016 Financial Performance III. Business Overview iv) Digital Infrastructure Business iii) Utilities & Power Business ii) Industrial Estate Business

25

VI. Appendix – Financial Statements i) Logistics & Industrial Properties Business Appendix – Eastern Economic Corridor (EEC)

26

Industrial Estate Business

Overview

Thailand No.1 Industrial Estate Developer

• 9 operating and 3 developing industrial estates in

Thailand’s most strategic industrial locations totaling 46,434 rai (7,429 hectares or 18,574 acres)

• f industrial land
• Average 32% leading market share by land sales

during the past decade while 690 customers accounted for 1,039 contracts with over USD $28.7 billion investments cumulatively.

• Automotive customers, 235 automotive customers

with 357 automotive contracts, including OEM’s Ford, Mazda, GM, Suzuki, and SAIC/CP-MG.

• Recognition of uncompromising standards and

quality by customers, communities, and authorities

2017 Target

Opening of 1 Industrial Estate to increase domestic sellable area Commencement of Phase‐1 WHA Hemaraj Industrial Zone Nghe An in Vietnam approx. 500 Ha Analyze opportunity related to future specialized estate developments

Industrial Hub ‐ Business Strategy

Extend our Leadership as Thailand’s No 1 Industrial Estate Developer leveraging on new Government initiatives known as Eastern Economic Corridor (EEC) Establish our premium brand in strategic regional countries to capitalize regional growth

• pportunities and to diversify our portfolio

Expand towards high‐value integrated property projects (“Specialized Estates”) 27

1 2 3

Business Strategy

Current Positioning

No 1 Industrial Estate Developer with 8 premium IEs in strategic manufacturing locations in Thailand

Current Positioning

No 1 Industrial Estate Developer with 8 premium IEs in strategic manufacturing locations in Thailand

Industrial Estate Business

1 2 3

28

Industrial Estate Business

Industrial Estate Business ‐ Performance

• No. 1 by Land Sale with more than 33% market share over the past decade

Year Market (rai) Hemaraj (rai) % Market

2016 1,443 835 58% 2015 2,121 1,043 49% 2014 1,576 665 42% 2013 4,746 2,200 46% 2012 10,872 2,317 21% 2011 5,457 1,670 31% 2010 3,622 930 26% 2009 901 144 16% 2008 4,170 1,621 39% Total 34,908 11,425 33% Source: CBRE Bangkok property report as of 2016

2,200 665 1,043 835 500 1,000 1,500 2,000 2,500 2013 2014 2015 2016

Our Land Sales Record

Unit: rai

Industrial Market Share

33% Market Share

with over 11,000 rai of Total Land Sales from year 2008 until now

29

Industrial Estate Business – Customer Profile

Customer Profile by Country Customer Profile by Industry

The total number of customers through 4Q’ 2016 consists of 690 customers with total 1,039 Contracts

Industrial Estate Business

Auto 34% Consumer 14% Petrochemical 9% Steel/Metal 9% Electronics 7% Building Material 7% Logistics 5% Others 15% Japan 38% Thailand 18% Europe 12% USA 9% Australia 5% Taiwan 3% India 2% China 4% Korea 3% Other Asia, 6%

30

Industrial Estate Business – Customer Profile

Industrial Estate Business

11 19 23 25 9 9 2 5 5 3 2 8 11 4 2 3 2 1 7 3 5 1 1 6 1 1 6 2 5 15 13 8 7 5 1 3 5 4 4 1 2 5 2 2 4 19 49 80 60 31 22 22 10 20 30 40 50 60 70 80 90 2010 2011 2012 2013 2014 2015 2016

Number of New Customers by Industry

Auto Building Material Consumer Electronics Logistics Others Steel/Metal Total

26 29 33 42 13 10 5 6 3 9 14 6 3 6 4 2 11 5 6 2 3 1 18 14 2 4 2 11 20 15 10 8 9 1 5 9 9 5 1 4 2 5 5 3 1 7 41 74 115 101 42 28 36 20 40 60 80 100 120 140 2010 2011 2012 2013 2014 2015 2016

Number of Contract by Industry

Auto Building Material Consumer Electronics Logistics Others Steel/Metal Total

Consumer Petrochemical Steel/Metal 31

Well‐Known Customer Profile

Industrial Estate Business

Automotive

32

Investment in Vietnam – Nghe An Project Overview

Industrial Estate Business

33

Investment in Vietnam – Nghe An Project Overview (Cont’d)

Industrial Estate Business

• Approx. area: 2,040 ha
• Approx. area: 1,160 ha

34

Investment in Vietnam – Nghe An Project Overview (Cont’d)

Industrial Estate Business

• Approx. area: 2,040 ha
• Approx. area: 1,160 ha

35

Investment in Vietnam – Nghe An Project Overview (Cont’d)

Industrial Estate Business

Tentative Project Timeline

• Received IRC

(Investment Registration Certificate) from the Vietnamese government

• Area granted: 498
• ha. (approx. 3,100

rai)

• Handover period –

relocation phase which is responsible by the Vietnamese government

• Commencement
• f development
• Initial

development of

• approx. 1,000

rai. Mid Feb 2017 2Q17 3Q17 4Q17

• Commencement
• f pre-sale
• Continue

development of the remaining area

Agenda I. WHA Group Overview IV. Recent Developments & Key Events

• II. Summary of Financial/Business Performance

V. YE 2016 Financial Performance III. Business Overview iv) Digital Infrastructure Business iii) Utilities & Power Business ii) Industrial Estate Business

36

VI. Appendix – Financial Statements i) Logistics & Industrial Properties Business Appendix – Eastern Economic Corridor (EEC)

Utilities & Power Business

Overview

37

Partner Conventional Power Alternative Power Project % Equity MW Project % Equity MW Gheco-One 35.00% 231.0 Glow IPP 5.00% 35.7 Houay Ho 12.75% 19.4 BCE 25.01% 30.3 WHA Gunkul 74.99% 2.5 GJP NLL 25.01% 30.6 Gulf Solar 25.01% 0.1 Gulf VTP GTS 1-4 25.01% 160.1 GNLL2. 25.01% 30.0 Total 537.0 2.6

Utilities Business

Sole provider of utilities to manufacturers/ factories in leading industrial estates with a concrete plan to capture increasing demand from heavy users and expand outside i.e. other IEs, non-IE area and international

• Current available water services includes (1) raw water (2)

industrial water and (3) wastewater management

• Current average demand of 94 mm m3/yr (inclusive of all types of

water)

Power Business

Active power investor with strategic partnership with leading Thai and international power companies

• Current investment in IPPs, SPPs, and Alternative Power Plants,

totaling 349.6 Equity MW, growing to 539.6 Equity MW in 2019

• Partnership with Glow, Gulf, B.Grimm, Gunkul and Suez

Raw Water Industrial Water Wastewater

2017 Target

More Proactive in exploring into the utilities business outside the industrial estates Continue to develop new utilities plant and system (recycle plants

• r raw water reservoir) in tandem with the new expansion of

Industrial Estate Commencement on NGD business Development of 1st captive small Power Plants Project Implementation of self‐consumed solar roof project

Utilities & Power Hub ‐ Business Strategy

Integrated Solutions In Utilities and Power business, expansion to

• ther market segments with world‐class operation and services

Expand to strategic regional countries by leveraging on our WHA Group Brand, expertise and customer base

38

Current Positioning Current Positioning

1 2

Business Strategy

Utilities Thailand’s leader in IE industrial water businesses provides approximately 94 Million Cubic Meter per year of industrial water and wastewater treatment to IE customers Power Active strategic power investor with more than 540 MW Equity Investment

Utilities & Power Business

1 2 3 1 2

Domestic: International: Utilities: Power:

25 23 22 21 19 17 29 35 39 42 43 46 53 58 60 63 62 63 19 22 23 26 26 27 5 6 6 6 6 6 24 28 30 31 32 33 20 40 60 80 Raw Water Industrial Water Wastewater Wastewater (ESIE) 2011 2012 2013 2014 2015 2016

Utilities Business – Capacity and Consumption

WHAUP's Sales and Management Volume

Million m3/ year 2011

• Provide raw water and industrial water for an aggregate average of 173,661 m3/day as well as provides wastewater

management for an aggregate average of 91,053 m3/day

• Utilities sales volume has been increasing with CAGR 3.5% for raw water and industrial water and CAGR 6.6% for

wastewater management during 2011-2016

Source : The Company

Utilities & Power Business

39

Project Name Type JV Partner Location Installed Capacities (MW) WHAUP Portion Equity MW COD Operating Phase Gheco-I IPP Coal Glow Map Ta Phut IE 660.0 35.00% 231.0 Q3’12 Glow IPP IPP Gas Combined Cycle Glow HCIE 713.0 5.00% 35.7 Jan-03 Houay Ho Power IPP Hydro Glow Lao PDR 152.0 12.75% 19.4 Sep-99 GJP NLL SPP Gas Co-gen Gulf JP HRIL 122.5 25.01% 30.6 May-13 Gulf Solar VSPP Solar Gulf HLP1, HCIE, HESIE, ESIE 0.6 25.01% 0.1 Jun-14 – Jan-15 WHA Gunkul VSPP Solar Gunkul Bangna and Ayudthaya 3.3 74.99% 2.5 Apr – Jul-14 BCE SPP Gas Co-gen B Grimm HCIE 121.0 25.01% 30.3 Nov-16 Total 1,772.4 349.6 Construction Phase GVTP SPP Gas Co-gen Gulf MP ESIE 130.0 25.01% 32.5 May-17 GTS1 SPP Gas Co-gen Gulf MP ESIE 130.0 25.01% 32.5 Jul-17 GTS2 SPP Gas Co-gen Gulf MP ESIE 130.0 25.01% 32.5 Sep-17 GTS3 SPP Gas Co-gen Gulf MP HESIE 125.0 25.01% 31.3 Nov-17 GTS4 SPP Gas Co-gen Gulf MP HESIE 125.0 25.01% 31.3 Jan-18 GNLL2 SPP Gas Co-gen Gulf MP HRIL 120.0 25.01% 30.0 Jan-19 Total 760.0 190.1 Development Phase CCE VSPP Waste-to-energy Glow& Suez HCIE 6.9 33.33% 2.3 2019 Total 6.9 2.3

Power Business – Well‐Balanced Portfolio with Strategic Location

The Company partners with leading Thailand and International companies on the Power Business Projects, including Glow, Gulf, B. Grimm, Gunkul and Suez

Utilities & Power Business

40

Agenda I. WHA Group Overview IV. Recent Developments & Key Events

• II. Summary of Financial/Business Performance

V. YE 2016 Financial Performance III. Business Overview iv) Digital Infrastructure Business iii) Utilities & Power Business ii) Industrial Estate Business

41

VI. Appendix – Financial Statements i) Logistics & Industrial Properties Business Appendix – Eastern Economic Corridor (EEC)

Overview

Digital Infrastructure Business

42 4 Data Center & 2 Cloud Solutions Establish 4 Data Centers and 2 Cloud Computing as a managed service (IaaS, PaaS, SaaS) # Data Centers 3 1 # Cloud Solutions 2 ‐ Location Zone Vibhavadi Bangna‐Trad Eastern Seaboard Bangna‐Trad Shareholding 100% by WHA Join Ventures Start operation May 2017 Local Loop in 6 Industrial Estates (FTTx) Implementing Local Loop as a managed service in 6 IEs # Local Loop 3 New IEs 3 Existing IEs Rental/Leasing Equipment Procuring, implementing, maintaining all IT equipment and facilities, e.g. hardware, software, accessories, linkage etc., and Rent/Lease the equipment out to our clients System Integrators and Data Mining (Big Data) Designing, training, implementing, bringing together IT component subsystem in providing a comprehensive IT solution for our clients IT Outsourcing/Business Process Outsourcing (BPO) A service provider to deliver IT‐enabled business process, IT human resources, applications and infrastructure solutions to enhance our clients’ business outcomes.

2017 Target

Implement FTTx service inside 3 existing and 3 new Industrial Estates Roll out 2 Data Centers with Combined Capacity of approx. 300 Racks Provide System Integration (SI), Equipment Rental, Telephony, IT Outsourcing and Contact Center solutions to both IE and non‐IE customers

Current Positioning

Establishing Data Centers as well as implementing the Local Loop and providing Cloud Service as a Managed Service inside the Industrial Estates

Current Positioning

Establishing Data Centers as well as implementing the Local Loop and providing Cloud Service as a Managed Service inside the Industrial Estates 43

Business Strategy

Digital Infrastructure Business Strategy

Complete and Roll out services of all 4 Data Centers with higher standard at Tier‐3 Be leader in Managed services with Platform and Data Centers as World‐ Class Cloud Service provider To become One‐Stop Service Data Center developer and provider by way of business collaboration with reputable partners focusing more on networking strength and cyber security management

1 2 3

Digital Infrastructure Business

1 2

“Proactive in providing comprehensive data solutions and platform to leading MNCs and Thai Companies”

3

Industry Outlook

Digital Infrastructure Business

44

Source: ‐ PR Newswire (May 16, 2016) ‐ Company Research (December 21, 2016)

• The Thai government introduced its Digital Economy Plan, which placed a strong focus on the development of

data centers and cloud computing within Thailand. New laws are also passed to aid in the development of a digital economy.

• Growing Internet penetration will drive the demand for data center services
• Business expansion within the ASEAN region drives demand in data center services
• Increased adoption in cloud services attract providers to establish operations within the Thai markets
• From 2015 through the end of 2017, data center

(number of racks) will have grown by a CAGR of 15%. Private sector contributed 6,375 racks in 2015 and expected to increase to 9,225 racks in 2017.

• Local and regional players take advantage of the

investment policies by the government such as tax privileges and preferential electricity rates.

Remark: Year 2017 has included racks implemented by the Company

Agenda I. WHA Group Overview IV. Recent Developments & Key Events II. Summary of Financial/Business Performance V. YE 2016 Financial Performance III. Business Overview iv) Digital Infrastructure Business iii) Utilities & Power Business ii) Industrial Estate Business

45

VI. Appendix – Financial Statements i) Logistics & Industrial Properties Business Appendix – Eastern Economic Corridor (EEC)

Completion

• f

Acquisition Loan Repayment Asset Monetizati

• n to

HREIT Asset Monetization to WHART Joint Venture with Daiwa House WHAUP IPO Cash Dividend Bond Issuance

Recent Developments & Key Events

Recent Developments/Key Events

4

• 2 Projects monetization in WHART with the total

leasable area of 159,141 sqm.

• WHART’s fund raised : approx. THB 4,409.7 mm*
• Asset Transfer : 7 Dec 2016

5

• JV agreement signed on 26 July 2016
• Sold 2 Projects (Laemchabang and Bang-na Trad) to

JV Co. with total amount of approx. THB 1,955 mm

• Asset transfer: 22 Dec 2016
• Hemaraj’s asset monetization to HREIT with the total

leasable area of 261,314 sqm.

• HREIT’s fund raised: approx. THB 8,019 mm
• Asset Transfer: 23 Nov 2016

46

• Offering: 30% of total shares (post IPO)
• Price range: 25.25 - 26.25 Baht/share
• Subscription period
• Pre-emptive right: 22 – 24 March 2017
• Retail: 22 – 24, 27 – 28 March 2017
• Institution: 30 – 31 March 2017, 3 April 2017
• Final price: will be announced on 29 March 2017
• Pre-emptive right ratio: (250 WHA : 1 WHAUP)

2 3 1

• Acquisition Loan repayment at WHA level is Completed
• Remaining Loan has been recapitalized from WHA level to

WHAUP and Hemaraj up to THB 13 bn, THB 5 bn will be repaid upon completion of WHAUP IPO

• 2016 year-end Gearing Ratio: 1.91x

Net Gearing Ratio : 1.70x

6 7

• Cash Dividend: 0.1536 baht/share
• r approx. THB 2,200 mm
• Dividend Payout Ratio: 76% of consolidated net profit

*Note: Dividend payout is subjected to AGM. Upon approval, XD date will be on 4 May 2017

• Increase bond facility: THB 5,000 mm
• Current outstanding bond facility: THB 4,540 mm
• Total bond facility: THB 9,540 mm
• Main use of proceed: Capital expenditure, working

capital and special project acquisition *Remark: Including set up cost of THB 219.7 mm

Recap – Overall Funding Structure

Total Consideration

THB 43,258 mm /1

Equity

THB 11,367 mm

Bank Loan (WHA)/2

THB 31,891 mm THB 8,000 mm

Remarks: 1/ The amount already includes the up-front fees that are subjected to the loan arrangement. 2/ The amount of bank loan also covers all the up-front fees—arranger fee and commitment fee—under the bridging loan part with the total amount of THB 275 mm

THB 23,891 mm

Bridging Loan (2 Yr) LT Loan (7 Yr)

47

Recent Developments & Key Events

1

Recent Developments/Key Events (Cont’d)

Completed

Net Proceed

(THB mm)

Entity Net Repayment Amount

(THB mm)

Due date

1. Net Proceeds for Repayment from Hemaraj Non-core Asset 3,003 Hemaraj 2,789 Jul 2015 2. Dividend from Hemaraj’s Normal Operation (2H14 – 1Q15) 1,296 Hemaraj 1,204 Jul 2015 3. Net Proceeds for Repayment from WHA Office Buildings 2,075/1 WHA 2,075 Nov 2015 4. Net Proceeds for Repayment from WHA-W2 Exercise 3,181 WHA 3,181 Dec 2015 5. Net Proceeds for Repayment from WHA’s WH #1 3,729/1 WHA 1,206 Dec 2015 6. Additional Loan for Tender Offer to Delist Hemaraj (2,419) WHA (2,419) Mar 2016 7. Internal Cash (On-Lend Transaction) 1,000 Hemaraj 1,000 Mar 2016 8. Refinance by Other Financial Instruments 7,560 WHA 7,560 Jun 2016 9. Net Proceeds for Repayment from Assets Sale to HREIT WHA 3,645 Nov 2016 10. Long-term Loan Recapitalization/1 13,000 Hemaraj, WHAUP 13,000 Jul 2016 Total Interest Payment (Mar’15 – Feb’16) (1,350) Net Loan Repayment at WHA level 31,891

Actual Payment of the Acquisition Loan

48

Recent Developments & Key Events

Completion of Acquisition Loan Repayment at WHA Level of THB 31,891 mm in FY 2016

Remarks: 1/ Long-term Loan Recapitalization will be repaid by the IPO proceeds of Utilities & Power of THB 5,000 mm

1

Net Proceeds from Assets Monetization

Assets Monetization to HREIT

Fund Raising: THB 8,018.6 mm Net proceeds monetization from HREIT: THB 6,896.9 mm* (Nov 2016) Main use of proceeds 1) Acquisition Loan Repayment THB 3,645.0 mm 2) Loan Repayment THB 1,400.0 mm 49

Recent Developments & Key Events

Assets Monetization to WHART

Fund Raising: THB 4,409.7 mm Net proceeds monetization from WHART: THB 3,618.9 mm* (Dec 2016) Main use of proceeds 1) Loan and BE Repayment THB 1,153.0 mm

Remarks: * Net-off REIT set-up/transaction cost and 15% reinvestment of new equity

Completion of Acquisition Loan Repayment at WHA Level of THB 31,891 mm in FY 2016

1

Overall Interest‐bearing debt

50

Recent Developments & Key Events

Consolidated Interest Bearing Debt

Long-term Loan Recapitalization

• HEMRAJ = THB 2,500 mm
• WHAUP = THB 10,499 mm

47,627 48,993 49,935

THB mm

HEMRAJ REIT Proceed from Assets Monetization from Joint Venture with Daiwa House Industry WHART Capital Increase #2

Projected Interest-Bearing Debt

41,995* 52,143 Gearing Ratio Net Gearing Ratio 1.91x 1.70x WHA HEMRAJ HEMRAJ‐Loan Recapitalization WHAUP‐Loan Recapitalization Acquisition Loan 14,145 14,900 19,152 19,723 14,720 14,947 14,139 14,139 15,777 14,277 2,500 2,500 ‐ ‐ ‐ 10,499 10,499 18,536 19,955 16,645 3,645 ‐ 10,000 20,000 30,000 40,000 50,000 2015A 1Q 2016A 2Q 2016A 3Q 2016A 4Q 2016A

Remarks: * Utilities & Power spin-off within Q1 2017, afterwards the expected consolidated gearing ratio will be 1.34 times

• Long-term Loan Recapitalization will be repaid by the IPO proceeds of Utilities & Power of THB 5,000 mm. As a result the loan will decrease from

THB 13,000 mm to THB 8,000 mm.

1

Recent Developments/Key Events (Cont’d)

Location Asset Type and Approx. NLA

Eastern Seaboard Industrial Estate (Rayong) (ESIE) Hemaraj Eastern Seaboard Industrial Estate (HESIE) Hemaraj Chonburi Industrial Estate (HCIE) Hemaraj Logistics Park 1 Hemaraj Logistics Park 2 Hemaraj Logistics Park 4 Asset Type and NLA Factory 167,372 sq.m. Warehouse 93,942 sq.m. Total Leasable Area 261,314 sq.m.

• Total net leasable area to monetize is approx. 261,314 sq.m.
• HREIT’s fund raised: approx. THB 8,018.6 mm
• Asset Transfer : 23 Nov 2016
• First Day Trade : 28 Nov 2016

ASSET MONETIZATION TO HREIT

2

51

Recent Developments & Key Events

Recent Developments/Key Events (Cont’d)

Asset Building (sqm) Rooftop (sqm) Snapshot

WHA Mega Logistics Center Lardkrabang

Lardkrabang, Bangkok

95,110.00 59,986.30 WHA Mega Logistics Center Chonlaharnpichit km 5

Chonlaharnpichit Rd, Samutprakarn

64,031.00 50,143.60

Total

159,141.00 110,129.90

• Total net leasable area to monetize is approx. 159,141 sq.m. + 110,130 sq.m. (rooftop)
• WHART’s fund raised: THB 4,409.72 mm
• Asset Transfer : 7 Dec 2016
• First Day Trade : 15 Dec 2016

ASSET MONETIZATION TO WHART

3

52

Recent Developments & Key Events

Recent Developments/Key Events (Cont’d)

JOINT VENTURE WITH DAIWA HOUSE INDUSTRY

4

Asset

• Approx. NLA

Snapshot

WHA Mega Logistics Center Cholaharnpichit KM3 PH II 74,000 sqm WHA Mega Logistics Center Laemchabang 45,000 sqm

• JV agreement signed on July 26, 2016
• WHA sold 2 Seed Projects (Laemchabang and Bang-Trad area) amounting to THB 1,955 mm to JV
• WHA hold 51% and Daiwa House Industry hold 49% in JV Co.
• Asset Transfer : 22 Dec 2016

53

Recent Developments & Key Events

Agenda I. WHA Group Overview IV. Recent Developments & Key Events II. Summary of Financial/Business Performance V. YE 2016 Financial Performance III. Business Overview iv) Digital Infrastructure Business iii) Utilities & Power Business ii) Industrial Estate Business

54

VI. Appendix – Financial Statements i) Logistics & Industrial Properties Business Appendix – Eastern Economic Corridor (EEC)

53% 47% 68% 32%

32% 32% 18% 18% 75% 14% 11% 47% 31% 22%

YE 2016 Financial Performance

Long‐Term Outlook

55 18,319 mm

2015A 2020F Revenue and Share of Profits

Revenue by Hub

Equal contribution from 4 business hubs going forward

2016A 2015A

Sales vs. Recurring Income

Target Recurring Revenue 9,500 mm

2020F 2015A

21,000 mm

Unit: THB

Higher recurring income portion Well‐diversified source of revenue from 4 hubs Strengthen business platform

18% rental and recurring 23% Sale to WHART 34% Sale to HREIT 11% rental and recurring 15% Sale to WHART 6% Sale to HREIT

Better earning visibility 5 Years CAGR 11.7% (2015A – 2020F)

2016A

12,064 mm

2020F

10% rental and recurring 37% Sale to WHART

Logistic Industrial Estates Utilities and Power Digital

77% 23%

2016A Sale Recurring

Overall Performance

56

YE 2016 Financial Performance

2016 PERFORMANCE

• Total revenue increased 52% from 2015 to THB 18,319 mm in 2016, mainly due to sale of assets into REITs i.e. WHART

and HREIT; totaling to THB 10,424 mm.

• EBIT increased 41% YoY to THB 6,415 mm in 2016. EBIT Margin stood at 35% for 2016.
• Net profit of THB 2,898 mm for 2016 or an increase of 48% YoY, while net profit margin stayed constant at 16%.

48% YoY increase in net profit was a result of a dramatic increase in revenue from sale of assets into REITs

Unit: THB mm

Overall Performance

57

YE 2016 Financial Performance

2016 FINANCIAL HIGHLIGHT

Total revenue increased 52% YoY from THB 12,064 mm FY2015 to THB 18,319 mm in FY2016, mainly attributable to Sale of Assets into 2 REITS i.e. THB 4,145 mm from WHART and THB 6,279 mm from HREIT Total gross profit increased 60% YoY to THB 6,406 mm, contributed from rental and service gross profit of THB 1,911 mm and sale of assets gross profit of THB 4,495 mm EBITDA increased by THB 1,959 mm or an increase of 39% YoY to THB 7,012 mm in 2016, EBITDA Margin stands at 38%. IBD reduced by THB 5,632 mm from THB 47,627 mm YE2015 to THB 41,995 mm YE2016. Weighted Average Interest Rate reduced from 5.13% YE2015 to 4.55% in YE2016. Interest expense increased to THB 2,432 mm or an increase of 6.5% YoY comparing to partial consolidation of Hemaraj in 2015. Net profit increased to 2,898 mm in FY2016 or growing at 48% YoY mainly due to an increase in total revenue and enhanced gross profit margin. Gearing ratio reduced from 2.20x in FY2015 to 1.91x in FY2016

2 1 4 5 6 3

4,337 4,502 5,458 3,964 2,425 6,279

4,337 8,466 14,163

30% 28% 32%

2 0 1 4 2 0 1 5 2 0 1 6

WHA HEMRAJ Margin

Profitability by Business

58

RENTAL PROPERTY BUSINESS SALE OF PROPERTIES BUSINESS

• Consist of property and REIT management fee, dividend income, share of

profit from property fund, and other income

Unit: THB mm

Gross profit margin on consolidated FS is different from that on HEMRAJ stand-alone FS due to the effect of PPA adjustment after acquisition

YE 2016 Financial Performance

OTHER REVENUES

160 239 240 447 299

160 686 539

2 0 1 4 2 0 1 5 2 0 1 6

WHA HEMRAJ

• The decrease in other

revenues in 2016 mainly resulted from the sale of

• ne-off sale of non-core

assets from HEMRAJ of

• approx. THB 128 mm in

2015.

• The company recognized revenue from sale of assets to HREIT of THB 6,279

mm in Q42015, realizing gross profit margin of 66% on HEMRAJ’s level and 39% on consolidated level due to PPA effect.

• Sale of IE land amounted to THB 2,425 mm in 2016, a margin of 49% on

HEMRAJ’s level and 36% on consolidated level after PPA.

• For warehouse properties, the company mainly realized revenue from sale to

WHART of THB 4,145 mm and sale to WHA DAIWA Logistics Property of THB 958 mm.

• For the reasons mentioned above, sale of properties increased by 67% in

2016.

Sale to HREIT Sale of IEs

551 735 815 667 839

551 1,402 1,654

60% 69% 67% 2 0 1 4 2 0 1 5 2 0 1 6

WHA HEMRAJ Margin

• Rental and service income increased by 18% in 2016 from 2015 as a

result of growth in rental properties and partial consolidation of 2015 performance from HEMRAJ.

• HEMRAJ’s gross profit margin of rental and service income before PPA

stood at 89%. Remark: Includes share of profit from JV’s and Associates

‐ ‐ 1,569 2,004

‐ 1,569

42% 40%

2 0 1 4 2 0 1 5 2 0 1 6

WHA HEMRAJ Margin

2 979 965

2 0 1 4 2 0 1 5 2 0 1 6

Profitability by Business

59

UTILITIES BUSINESS POWER BUSINESS

Unit: THB mm

Gross profit margin on consolidated FS is different from that on HEMRAJ stand-alone FS due to the effect of PPA adjustment after acquisition

YE 2016 Financial Performance

• Rental and service income from utilities business increased by

28% in 2016 from 2015 from a full consolidation of HEMRAJ’s performance in 2016 and growth of IE customers.

• Gross profit margin on HEMRAJ’s level before PPA stood at

44%.

• Power

business performance in 2016 was slightly lower compared to that of 2015 due to partial consolidation of 2015 performance from HEMRAJ and extraordinary events in 2016.

• The

power business was mainly driven by GHECO ONE

• performance. While the overall availability was higher compared

to FY2015, there were adverse impacts from unplanned maintenance.

• There was unrealized gain from FX of THB 50 mm in 2016

Remark: Includes share of profit from JV’s and Associates

Rental property 1,654 9% Sale of Industrial Estates 2,425 12% Sale of IP's 11,737 61% Utilities 2,004 10% Power 965 5% Others 539 3% Rental property 1,109 14% Sale of Industrial Estates 877 11% Sale of IP's 3,618 46% Utilities 803 10% Power 965 12% Others 539 7%

Revenue and Gross Profit Breakdown

60

2016 GROSS PROFIT BREAKDOWN 2016 REVENUE BREAKDOWN

Unit: THB mm Unit: THB mm

TOTAL THB 19,325 mm TOTAL THB 7,910 mm

Remark: Includes share of profit from JV’s and Associates Remark: Includes share of profit from JV’s and Associates Gross profits are based on consolidated financial statements, thus they are affected by PPA adjustment

Recurring vs Non-Recurring = 27:73 Recurring vs Non-Recurring = 43:57

YE 2016 Financial Performance

Balance Sheet

61

Unit: THB mm

CAPITAL STRUCTURE ASSETS

Unit: THB mm

RETURN ON INVESTMENT

Remark: ROIC = NOPAT / Average Invested Capital (IBD and Equity)

• IP’s stood at THB 11,026 mm at year end 2016.
• Intangible assets & goodwill of THB 21,694 mm resulted from the PPA after

the acquisition.

• Hemaraj contributed Cost of Real Estate Developments of THB 14,648 mm

and Investment in Associates of THB 9,928 mm to the consolidated balance sheet at YE2016.

A drop in return on investment is due to a significant increase in asset and equity base after acquisition of Hemaraj and a change in the nature of business

YE 2016 Financial Performance

22.7% 16.9% 14.5% 7.2% 4.1% 3.8% 10.5% 10.6% 8.4% 0% 5% 10% 15% 20% 25%

2 0 1 4 2 0 1 5 2 0 1 6

ROE ROA ROIC

10,503 47,627 41,995 11,472 57,407 52,821 4,480 21,659 21,962 2.34 2.20 1.91 2.56 2.65 2.41 1.86 2.01 1.70 ‐ 1 2 3 10,000 20,000 30,000 40,000 50,000 60,000

2 0 1 4 2 0 1 4 2 0 1 4 2 0 1 5 2 0 1 5 2 0 1 5 2 0 1 6 2 0 1 6 2 0 1 6

IBD Liabilities Equity IBD/E D/E Net IBD/E

4.72% Term Loan 1,008 5.65% Bond 13,938

2.45% B/E 1,700 4.84% Term Loan 2,562 5.04% Bond 24,338 5.53% Acquisition Loan 18,537

Debt Profile

62

END OF 2015

Unit: THB mm

END OF 2016

Unit: THB mm

WHA HEMRAJ

YE 2016 Financial Performance

WHA HEMRAJ

Weighted Average Interest Rate 4.91% Weighted Average Interest Rate 5.59%

Weighted Average Interest Rate 5.13%

2.40% B/E & P/N 1,160 4.81% Bond 27,468 4.20% Acquisition Loan 12,999 Weighted Average Interest Rate 4.55%

Weighted Average Interest Rate 4.02% 2.40% B/E & P/N 350 5.66% Bond 12,438 4.20% Acquisition Loan 12,999 Weighted Average Interest Rate 4.88%

Debt Maturity Profile & Finance Cost

DEBT SERVICE FOR EACH PERIOD

Unit: THB mm

FINANCE COST 63

YE 2016 Financial Performance

3,535 3,060 3,555 2,500 2,100

• 280

2,300

• 638
• 2,000

1,000 2,500 2,500

2,000 1,500 1,500 1,500 1,499 5,000

10,835 5,060 5,693 4,000 5,600 2,499 2,500 2,780

2017F 2018F 2019F 2020F 2021F 2022F 2023F 2024F WHA : Bond HEMRAJ : Bond WHAUP: Term Loan Acquisition Loan

Unit: THB mm As of 31 Dec 2016

Under HEMRAJ and WHAUP

183 295 2,284 2,432

295 1,823 1,467

295 1,296

766

‐ 500 1,000 1,500 2,000 2,500 3,000 2 0 1 3 2 0 1 4 2 0 1 5 2 0 1 6 Consolidated WHA's Acquisition loan

Agenda I. WHA Group Overview IV. Recent Developments & Key Events II. Summary of Financial/Business Performance V. YE 2016 Financial Performance III. Business Overview iv) Digital Infrastructure Business iii) Utilities & Power Business ii) Industrial Estate Business

64

VI. Appendix – Financial Statements i) Logistics & Industrial Properties Business Appendix – Eastern Economic Corridor (EEC)

Income Statement

Consolidated Income Statement (Unit: THB, mm) 2014 2015 2016 %YoY 4Q2015 3Q2016 4Q2016

Revenue Rental, service, and utilities income

551.1 2,970.7 3,658.0 23.1% 840.0 983.0 957.5

Income from sales of real estate

4,336.8 8,466.3 14,162.6 67.3% 7,735.1 317.2 13,023.3

Other income

169.8 627.1 498.2 (20.6%) 234.6 107.9 163.2

Total revenues

5,057.7 12,064.1 18,318.8 51.8% 8,809.7 1,408.0 14,144

Share of profit (loss) from JVs & associates

(7.7) 1,038.0 1,006.2 197.1% 385.5 220.5 (155.1)

Expenses Cost of rental and service

219.0 1,356.9 1,746.7 28.7% 478.9 438.1 465.5

Cost of real estate

3,050.1 6,073.7 9,668.0 59.2% 5,580.9 183.6 8,875.8

Selling expense

• 230.5

223.4 (3.1%) 161.3 40.2 116.0

Administrative expenses

283.3 902.8 1,271.9 40.9% 370.1 245.5 551.6

Total costs

3,552.5 8,563.9 12,909.9 50.7% 6,591.1 907.5 10,008.9

EBIT

1,497.5 4,538.2 6,415.0 41.4% 2,604.2 721.0 3,980.0

Finance costs

294.8 2,284.3 2,432.2 6.5% 698.7 628.2 576.6

EBT

1,202.7 2,253.9 3,982.9 76.7% 1,905.4 92.8 3,403.5

Income tax

224.1 87.0 812.6 833.8% 32.4 12.3 825.7

Net income

978.6 2,166.9 3,170.3 46.3% 1,873.0 80.6 2,577.7

Attributable to owners of the parent

978.6 1,953.7 2,898.2 48.3% 1,784.9 42.6 2,401.2

Attributable to non-controlling interest

• 213.2

272.1 27.7% 88.1 38.0 176.6

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Appendix – Financial Statements

Balance Sheet

Consolidated Balance Sheet (Unit: THB, mm) 2013 2014 2015 3Q2016 4Q2016 Increase (Decrease) Current assets Cash and cash equivalents 319.8 370.9 2,554.7 2,557.3 2,635.2 77.9 3.0% ST investment 663.5 1,815.0 1,515.2 198.4 2,108.3 1,909.9 962.6% Non-current assets held-for-sale 2,225.1 3,305.0 3,986.7 7,237.7

• (7,237.7)

(100.0%) Cost of real estate developments (net)

• 15,425.3

15,413.2 14,648.4 (764.7) (5.0%) Other current assets 123.4 191.2 2,726.3 2,358.7 2,667.4 308.7 13.1% Total current assets 3,331.8 5,682.2 26,208.3 27,765 22,059.3 (5,705.9) (20.6%) Non-current assets Investment in available-for-sale 1,387.5 1,851.3 2,286.3 2,858.0 4,025.1 1,167.1 40.8%) Investment in associates

• 8,886.1

10,153.2 9,928.0 (225.2) (2.2%) Investment properties (net) 6,167.2 7,958.6 14,638.6 12,346.7 11,025.6 (1,321.1) (10.7%) Leasehold rights (net) 64.0 52.9 51.0 43.6 19.8 (23.8) (54.7%) Property, plant, and equipment (net) 43.4 66.8 3,842.1 3,850.9 3,831.9 (19.0) (0.5%) Intangible assets (net)

• 4,184.8

4,172.8 4,118.6

• Goodwills
• 17,575.0

17,575.0 17,575.0

• Other non-current assets

55.0 340.1 1,393.9 1,753.7 2,200.2 446.5 25.5% Total non-current assets 7,717.0 10,269.9 52,857.9 52,753.9 52,724.2 (29.7) 0.1% Total assets 11,048.9 15,952.0 79,066.2 80,519.1 74,783.6 (5,735.5) (7.1%) Liabilities Bank overdrafts and ST borrowings 198.7 250.0 1,693.2 6,654.6 3,648.9 (3,005.7) (45.2%) Trade and other payables 1,123.1 597.4 3,381.1 2,046.0 2,451.6 405.6 19.8% Current portion of LT borrowings – FN institutions 87.0 391.2 11,714.1 4,990.7 2,491.5 (2,499.2) (50.1%) Current portion of LT borrowings – Debenture

• 3,175.0

6,884.3 5,850.8 (1,033.5) (15.0%) Other current liabilities 1,120.9 1,692.4 938.7 2,349.4 970.8 (1,378.6) (58.7%) LT borrowings – FN institutions (net) 1,501.9 1,175.7 9,227.9 9,825.7 7,929.9 (1,895.8) (19.3%) Debenture (net) 2,695.3 7,190.8 21,777.2 22,571.2 22,073.9 (497.3) (2.2%) Other non-current liabilities 168.1 174.4 5,529.2 5,364.6 7,403.8 2,039.2 38.0% Total liabilities 6,895.1 11,472.0 57,436.4 60,686.6 52,821.4 (7,865.2) (13.0%) Equity attributable to owners of the parent 4,153.8 4,480.0 18,655.8 19,156.4 21,429.4 2,273.0 11.9% Non-controlling interest

• 3,003.0

676.2 532.9 (143.3) (21.2%) Total shareholders’ equity 4,153.8 4,480.0 21,658.7 19,832.5 21,962.3 2,129.7 10.7% Total liabilities and Shareholders’ equity 11,048.9 15,952.0 79,095.1 80,519.1 74,783.6 (5,735.5) (7.1%)

66

Appendix – Financial Statements

Agenda I. WHA Group Overview IV. Recent Developments & Key Events II. Summary of Financial/Business Performance V. YE 2016 Financial Performance III. Business Overview iv) Digital Infrastructure Business iii) Utilities & Power Business ii) Industrial Estate Business

67

VI. Appendix – Financial Statements i) Logistics & Industrial Properties Business Appendix – Eastern Economic Corridor (EEC)

68

Source: BOI, NESDB, Fiscal Policy Office, and MOF

Appendix – Eastern Economic Corridor

Industry Outlook – EEC (Eastern Economic Corridor)

EEC refers to Eastern Economic Corridor. It is a Thailand’s Government’s initiative designed to put Thailand into a second S‐Curve and propel the industries up the value chain by promoting high‐tech industrial cluster and utilize on new and existing infrastructure development. EEC has taken effect via enforcements of Special Decree (Section 44) whilst enacting the relevant acts through Council of State and National Legislative Assembly (NLA). Key aspects of EEC include:

• 1. Industry focus – 10 targeted industries
• 2. Area (zone based) development – Chonburi, Rayong and Chanchoengsao
• 3. New Tax Incentives – Over 10 newly implemented incentives to cover Corporate Income

Tax and Personal Income Tax level.

• 4. Infrastructure development – multi‐modal transportation network surrounding the areas

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New Growth Engine: 10 Targeted Industries 3 Areas designated for development

• The corridor through Chon Buri, Rayong and Chachoengsao has been designated for development as a high‐tech industry cluster,

to become Asean's leading economic zone for industrial, infrastructure and urban development

• The project is aimed to accommodate the 10 targeted industries
• The EEC will also rely on infrastructure development, including air, land, rai and water links to cut logistic cost
• The EEC is also set to become a water transport hub, linking the Dawei deep‐sea port in Myanmar with Sihanoukville in

Cambodia and Vung Tau port in Vietnam

Source: BOI, NESDB, Fiscal Policy Office, and MOF

1 2

Appendix – Eastern Economic Corridor

Industry Outlook – EEC (Eastern Economic Corridor)

Rayong Chonburi Chachoengsao

MOTORWAY

• Pattaya – Maptaphut
• Saraburi – Nakorn Rachasima
• Bang Yai – Kanchanaburi

DOUBLE-TRACK RAIL

• Chachoengsao – Klong Sib Kao – Kang Koi
• Hua Mark – Chachoengsao
• Chachoengsao – Sri Racha – Laem Chabang

HIGH-SPEED TRAIN

• Bangkok – Rayong
• Bangkok – Nakhon Ratchasima
• Bangkok – Chiang Mai

AIRPORT

• U-Tapao
• Aerospace Cluster
• MRO
• OEM
• Air Cargo & Logistics Hub

SEAPORT

• Laem Chabang Ph.3
• Maptaphut Ph.3

1 2 3 4 5

Development & Linkage of Multi‐Modal Transportation Network

in Chonburi & Rayong and Other Strategic Locations Promoted by Government Initiatives

3

70

Appendix – Eastern Economic Corridor

Industry Outlook – EEC (Eastern Economic Corridor)

• Activity classified under eligible BOI categories
• Located in the designated provinces for each relevant clusters
• 13‐year* corporate tax exemption and additional 5‐year reduction of 50%
• Import duty exemption on machinery
• Double deduction on utility costs
• Deduction for qualified infrastructure costs
• Leasehold max 99 years
• Personal income tax of 17% flat rate for renowned specialists who work in the specified areas both

Thai and Foreign

• Have cooperation with academic institutions / research institutions
• Relaxation on foreign currency

1 2 3 4 5 6 7 8 9 10

Newly Proposed Tax Incentives

4

71

Appendix – Eastern Economic Corridor

Industry Outlook – EEC (Eastern Economic Corridor)

Remark*: Under the new BOI act, the corporate income tax exemption for 13 years must be qualified for the 10 targeted industries having investment in the development of Core Technologies e.g. Biotech, nanotech, digital tech as well as enabling services including R&D, vocational training centers. Applicants have an option to extend the exemption period to 15 years based on the Act on National Competitive Enhancement for Targeted Industries

Board of Directors

WHA Group

Director Director and Management

• Ms. Jareeporn Jarukornsakul

Vice Chairman of Board of Directors Vice Chairman of Executive Committee Group Chief Executive Officer

• Dr. Somyos Anantaprayoon

Chairman of Board of Directors Chairman of Executive Committee

• Dr. Somsak

Pratomsrimek Independent Director Member of the Audit Committee

• Dr. Somsak

Pratomsrimek Independent Director Member of the Audit Committee

• Dr. Apichai

Boontherawara Independent Director Member of the Audit Committee

• Dr. Apichai

Boontherawara Independent Director Member of the Audit Committee

• Dr. Kritsana

Sukboonyasatit Independent Director Member of the Audit Committee

• Dr. Kritsana

Sukboonyasatit Independent Director Member of the Audit Committee

Independent Director

• Mr. Narong Kritchanchai

Director Member of Executive Committee Chief Legal Officer

• Mr. David Richard Nardone

Vice Chairman of Board of Directors Member of Executive Committee Chief Executive Officer – Industrial Business

• Mr. Arttavit Chalermsaphayakorn

Director Member of Executive Committee Chief Financial Officer

• Mr. Vivat Jiratikarnsakul

Director Member of Executive Committee Chief Operating Officer‐Industrial business

• Mr. Krailuck Asawachatroj

Director Member of Executive Committee Chief Strategic Officer

• Mr. Jakrit Chaisanit

Director Member of Executive Committee Chief Operating Officer‐Logistics business Director of CM

72

• Mr. Somsak Boonchoyreungchai

Director Member of Executive Committee Director of Accounting Department

• Mr. Chanvit

Amatamatucharti Independent Director

• Mr. Chanvit

Amatamatucharti Independent Director

Remarks: Information as of January 9, 2017

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