2Q2019 Results and Business Plan
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Profitability: Investment from Joint Ventures was a Key Contribution 2Q2019 1Q2019 2Q2018 % Q-o-Q % Y-o-Y M Baht % M Baht % M Baht % Total revenue 2,037 100% 1,822 100% 2,426 100% 12% -16% Revenue from sale of real estate 871 43% 775 43% 1,534 63% 12% -43% Project management and commission income 431 21% 473 26% 431 18% -9% 0% 541 27% 313 17% 330 14% 73% 64% Construction income Other incomes 194 10% 261 14% 131 5% -26% 48% 579 28% 679 37% 774 32% -15% -25% Gross profit 205 24% 159 21% 439 29% 29% -53% Sale of real estate Project management and commission 220 51% 295 62% 224 52% -25% -2% Construction 39 7% 26 8% 27 8% 50% 42% 114 N/A 200 N/A 83 N/A -43% 37% Others SG&A 547 27% 697 38% 627 26% -21% -13% Selling expenses 150 7% 147 8% 215 9% 2% -30% Administrative expenses 397 19% 549 30% 412 17% -28% -4% Other expenses -2 0% -8 0% 0 0% N/A N/A 253 12% 371 20% 539 22% Share of Profit (Loss) -32% -53% EBIT 286 14% 363 20% 685 28% -21% -58% Interest expenses 141 7% 105 6% 91 4% 35% 56% Net Profit (Loss) 168 8% 270 15% 584 24% -38% -71% Profit attributable to non-controlling interests -48 -2% -38 -2% 0 0% 29% N/A Profit attributable to equity holders of the company 120 6% 232 13% 584 24% -48% -79% 3
Profitability: Investment from Joint Ventures was a Key Contribution 1H2019 1H2018 % Y-o-Y M Baht % M Baht % Total revenue 3,859 100% 5,246 100% -26% Revenue from sale of real estate 1,646 43% 3,387 65% -51% Project management and commission income 904 23% 927 18% -2% 854 22% 624 12% 37% Construction income Other incomes 455 12% 307 6% 48% 1,258 33% 1,811 35% -31% Gross profit 365 22% 1,009 30% -64% Sale of real estate Project management and commission 515 57% 529 57% -3% Construction 65 8% 53 8% 22% 314 N/A 220 N/A 43% Others SG&A 1,244 32% 1,312 25% -5% Selling expenses 297 8% 489 9% -39% Administrative expenses 947 25% 824 16% 15% Other expenses -10 0% - 0% N/A 624 16% 473 9% Share of Profit (Loss) 32% EBIT 649 17% 971 19% -33% Interest expenses 246 6% 183 3% 35% Net Profit (Loss) 438 11% 729 14% -40% Profit attributable to non-controlling interests -86 -2% 0 0% N/A Profit attributable to equity holders of the company 352 9% 729 14% -52% 4
Profitability: Investment from Joint Ventures was a Key to Grow Unit: M Baht 15 % 8,265 1H19 Transfers from JV GROWTH YOY 7,212 TRANSFERS 624 473 Share Profit from JV 83 % FROM JV PROJECTS %Gross Profit Margin 36% 34% MAINTAIN HIGH LEVEL OF PROFIT MARGIN 20% %Net Profit Margin 18% 1H18 1H19 5
Balance Sheet: Business Growth with Discipline 2Q2019 1Q2019 2Q2018 % Q-o-Q %Y-o-Y M Baht M Baht M Baht Cash balance and equivalent 5,912 4,626 1,585 28% 273% Assets 48,497 43,012 35,504 13% 37% Interest bearing debts 24,116 18,715 17,274 29% 40% Liabilities 29,558 23,659 21,642 25% 37% Shareholders' equity 18,938 19,354 13,862 -2% 37% D/E ratio (times) 1.56 1.22 1.56 28% 0% Net IBDE ratio (times) 0.96 0.73 1.13 32% -15% 6
Business Growth with Discipline 2.5 Times Bond Covenants 1.5 1.2 1 0.5 0 2018 1H2019 2017 2014 2015 2016 Note : Net Interest bearing debt including JV debt to equity 7
Key challenges to Thailand real estate market 1 2 3 Revised down Macro Prudential Trade War/Thai Thailand GDP Policy Baht appreciation Growth Effective 1 Apr 19 onwards , LTV Negative growth rate of Thailand GDP was revised down will be decreased to 80% for; Chinese demand impacted to 3.3% from 3.8% (BOT) due to from China – US trade war and slower exports which were • Multiple loan Thai Baht appreciation effected by China-US trade war • Unit price over 10 Mb. 8
Launch Target 2019: Moderate Growth with Mid-End Segment Focus 33 BILLION BAHT 92 % 23 CONDOMINIUM % GROWTH FROM 2018 7 PROJECTS 9 PROJECTS 6 JOINT VENTURE PROJECTS From original plan of 10 projects at 38 Bn 98% CONDO LAUNCH 8 % 32,937 HOUSING 26,756 2 PROJECTS 2013 2014 2015 2016 2017 2018 2019 9
Launch Target 2019: Moderate Growth with Mid-End Segment Focus 33 BILLION BAHT 9 PROJECTS 6 JOINT VENTURE PROJECTS NO. LAUNCH 2019 1Q19 3Q19 2Q19 4Q19 BEGINS Condo - 9,638* - 20,496 30,134 Housing - 1,369 1,434 - 2,803 TOTAL 32,937 - 11,007 1,434 20,496 (MILLION BAHT) 7 (6 JVs) NO. OF CONDO PROJECT - 1 JV - 6 (5JVs) 2 - 1 1 - NO. OF HOUSING PROJECT Note : * Ideo Q Phahol-Saphankhai is under redesigned and will be soft opened in the fourth quarter of 2019 10
Presales Target 2019: Adjust Presales Target to be in line with Current Market Sentiment 28 BILLION BAHT 13 % HOUSING From original plan of 36 Bn 87 % CONDOMINIUM 2019F 2Q19A 4Q19F 2Q19F 3Q19F 1Q19A PRESALES CONDOMINIUM 4,064 5,648 5,215 4,112 11,023 24,414 HOUSING 752 798 885 1,016 1,234 3,886 TOTAL 28,300 4,815 6,446 6,100 5,128 12,257 (MILLION BAHT) 11
Transfer Target 2019: Adjust Transfer Target to be Aligned with Market 92 29 BILLION BAHT % CONDOMINIUM From original plan of 36 Bn 8 % HOUSING 2019F 2Q19F Transfer 1Q19A 2Q19A 3Q19F 4Q19F Condo 202 1,290 675 1,284 2,626 4,787 Housing 573 606 196 654 1,112 2,535 Ananda F/S 775 1,896 871 1,938 3,738 7,322 Ananda Share in JV 2,171 1,871 1,761 2,339 4,345 10,616 Partner Share in JV 2,685 2,033 1,648 2,255 4,479 11,067 Ananda Share in Transfers 2,946 3,767 2,632 4,277 8,083 17,938 Total (M Baht) 5,631 5,800 4,280 6,532 12,562 29,005 12
Transfer Target 2019: 6 Additional Projects will be Ready to Transfer in 2H Mostly in 4Q 43 10 % NEW CONDO PROJECTS OF TRANSFERS THAT COMPLETE THIS COMING FROM YEAR Transfer 1Q19 2Q19 3Q19 4Q19 Begins NEW PROJECT AT SUKHUMVIT 31 13
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