ASSET WORLD CORP PUBLIC COMPANY LIMITED Q1/2020 ANALYST MEETING PRESENTATION 11 May 2020 1
A G EN D A � AWC STRATEGY � DIVERSIFIED PORTFOLIO � COST CONTROL INITIATIVES � COVID CRISIS � Q1/2020 FINANCIAL PERFORMANCE � Q1/2020 CORPORATE SOCIAL RESPONSIBILITY 2
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AWC STRATEGY 4 4 B U I L D I N G A B E T T E R F U T U R E
AW C STR ATEG Y 5 - Y R S T R A T E G I C T A R G E T Maximize Shareholder’s Return (ROE > 15%) Most Admired Real Estate Group Robust & Sustainable Growth (World Class Standard) with EBITDA CAGR > 15% S T R A T E G Y C O R E GROWTH-LED MIDDLE TO HIGH INCOME GLOBAL AND UNIQUE SYNERGY & NEW BENCHMARK STRATEGY CUSTOMER SEGMENT PARTNER SUSTAINABILITY B U S I N E S S M O D E L F U N D A M E N T A L / Real Estate Investor/Developer/Manager Scalable Frontier Projects Focus (Mixed-Used Development ) International customers base diversification and portfolio diversification throughout key cities Outstanding Return on Investment Strong Development Capabilities 5
TH AIL AN D ’S LEA D IN G IN TEG R ATED LIFESTYLE R EA L ESTATE G R O U P The Flagship Freehold Hospitality and Commercial Platform to Access the Attractive Thai Market H O S P I TA L I T Y 16 OPERATING HOTELS WITH 4,869 GUEST ROOMS R E TA I L & C O M M E R C I A L 9 OPERATING RETAIL PROPERTIES WITH THE TOTAL NLA OF 198,781 SQM 4 OFFICE BUILDINGS WITH THE TOTAL NLA OF 270,594 SQM 6
D IVER SIFIED PO R TFO LIO O F PR IME IC O N IC H O SPITA LITY A SSETS Iconic assets in prime city and resort locations, leveraging top global operators MICE and F&B Bangkok City Non-Bangkok, Other Non- Destination Hotels Hotels Luxury Resorts Bangkok Hotels Expansive event spaces Centrally located with Exclusive beachfront Award-winning hotels with many F&B options well-equipped facilities properties catering to wide clientele • Conveniently located in • Within short commute • Located on exclusive • Award winning hotels easily accessible from shopping districts beachfront properties, that receive a high level locations surrounded by and other tourist targeting leisure of satisfaction from vibrant shopping, destinations travelers of all types customers business and As at Mar 2020 entertainment districts No. of Hotels (1) 4 4 2 6 No. of Rooms (1) 2,305 923 167 1,474 No. of F&B Outlets (1) 27 11 9 23 Meeting / event 13,706 1,729 268 5,069 space (sqm) (1) 7 7
D IFFER EN TIATED R ETA IL & O FFIC E PO R TFO LIO Barbell retail strategy with unique destination and community retail and strong upside potential Prime central Bangkok offices provide stable cash flow Community Tourist Lifestyle Wholesale Retail Shopping Malls Office Destination (1) Properties (3) and Markets (2) Unique location by the Next to mass transport in Close to well-established Prime central Bangkok Chao Praya River residential communities transport links close to transport nodes • Flagship award-winning • Contemporary indoor urban • Innovative wholesale • High-quality office buildings tourist lifestyle destination, malls and low-rise platform under two key located at transportation and the first uniquely complexes, catering to the brands: AEC Trade Center nodes in business districts themed riverfront shopping daily needs of local and AEC Trade Center of metropolitan Bangkok As at Mar 2020 and travel destination in community Online Bangkok KPMG, Samsung, US Embassy, World class shows and events, Supermarkets/hypermarkets, Manufacturers, retailers, Key Anchor Tokyo Marine, Deutsche Bank, night market, local products, food cinemas, education, fitness exporters, and logistic and Tenants Nation Multimedia Group stalls centers and restaurants financial service providers 4 No. of Assets 1 8 1 NLA (sqm) 26,590 172,191 ~145,000 270,594 Notes: 1. Excludes Asiatique Phase 2 and Asiatique Pier and Boat 2. Includes Gateway Ekamai (under management and to be acquired pursuant to Gateway Ekamai MOU), but excludes Bangkapi Community Market (under development) and Lasalle’s Avenue 8 8 Expansion 3. Consists of AEC Trade Center which is currently under development
COST CONTROL INITIATIVES 9
C O S T C O N T R O L I N I T I AT I V E S HOSPITALITY RETAIL & COMMERCIAL • Implement effective procurement strategy • Conduct system inspection in all building for guestroom supplies operating systems to ensure maximum efficiency and adjust operating hours • Adjust operating hours and enforce effective raw material sourcing strategy • Improve work process efficiency in order to for F&B Outlets reduce overtime expenses • No new hiring policy • No new hiring policy • Roll out energy saving and conservation • Enact necessary safety and hygiene policy and reschedule maintenance plans measures in order to cope with COVID-19 situation • Revise marketing budget to bring out the most effective level • Reduce marketing expenses 10
C O S T C O N T R O L I N I T I AT I V E S HOSPITALITY RETAIL & COMMERCIAL -13.8% 493 74 - 16.9% 68 -28.3% 426 62 49 -35.2% 221 143 STAFF EXPENSE F&B COST CENTRAL UTILITIES EXPENSE STAFF EXPENSE -29.8% 163 5.6% -13.9% -22.5% 64 -5.4% 60 114 101 105 90 48 45 78 -48.1% 20 11 ROOM EXPENSE UTILITES EXPENSE MARKETING RENTAL AREA UTILITIES SAFETY AND MARKETING EXPENSE EXPENSE EXPENSE CLEANILNESS EXPENSE 1Q2019 1Q2020 1Q2019 1Q2020 11
Q1/2020 FINANCIAL PERFORMANCE B U I L D I N G A B E T T E R F U T U R E 12
TIMELIN E COVID 19 CRISIS TIMELINE COVID 19 CRISIS TIMELINE AWC temporarily COVID-19 has AWC set up the Bangkok Metro shut down 5 hotel started spread out thermo scan for Administration Thai Government operations. Only globally. The each property and AWC provided the discount announced the planned to apply Plaza Athenee severe cases were tested run of of 10-25 % to tenants Lock Down of Curfew to control Bangkok is fully discovered in WORK FROM whose businesses are Bangkok . COVID-19 situation . Wuhan, China. affected from COVID-19. operated. HOME process . FEB 2020 JAN2020 FEB 2020 MAR 2020 MAR 2020 MAR 2020 1Q2020 JAN 2020 FEB 2020 FEB 2020 MAR 2020 MAR 2020 MAR 2020 AWC set up the AWC set up the AWC waived (100%) AWC monitored on the AWC provided AWC monitored closely on COVID-19 COMBAT regular COVID- of rental fee to cost and executed the 50% discount for the cancellation of the Team (MCOM 19 update tenants who had to Cost Efficiency Initiatives the tenants of guests from China and Members) to solve (MCOM temporary close their for HOTEL Group, RETAIL RETAIL & prepared for cost COVID-19 issues at Members) on shops because of the & COMMERCIAL Group, COMMERCIAL controlling, if needed . the property level . daily basis. Curfew and Bangkok and CORPORATE Group Group. shutdown . 13
Q 1 /2 0 2 0 FIN A N C IA L H IG H LIG H T NET INCOME REVENUE OPERATING EXPENSE 108 mTHB 2,513 mTHB 1,538 mTHB -29.6% ** -28.7% -55.6% HOTEL - REVENUE RETAIL - REVENUE OFFICE - REVENUE 1,529 mTHB 402 mTHB 563 mTHB -38.1% -15.7% -2.3% ** (In comparison to the same period in the previous year) 14
PARAMETER : HOSPITALITY Segment 1Q2019 1Q2020 Growth % Occupancy rate Occupancy rate Occupancy rate 79.3% (34.9%) 51.6% Average Daily Rate Average Daily Rate Average Daily Rate 4,686 (Baht/Night) (3.9%) 4,501 (Baht/Night) Revenue Per Available Room Revenue Per Available Room Revenue Per Available Room MICE 3,716 (Baht/Night) (37.4%) 2,325 (Baht/Night) Occupancy rate Occupancy rate Occupancy rate 91.8% 59.5% (35.2%) Average Daily Rate Average Daily Rate Average Daily Rate 4,088 (Baht/Night) 3,587 (Baht/Night) (12.3%) Revenue Per Available Room Revenue Per Available Room Revenue Per Available Room BANGKOK CITY 3,753 (Baht/Night) 2,134 (Baht/Night) (43.1%) Occupancy rate Occupancy rate Occupancy rate (31.5%) 70.7% 48.4% Average Daily Rate Average Daily Rate Average Daily Rate (2.5%) 17,446 (Baht/Night) 17,003 (Baht/Night) Revenue Per Available Room Revenue Per Available Room Revenue Per Available Room LUXURY RESORT 12,329 (Baht/Night) 8,229 (Baht/Night) (33.3%) Occupancy rate Occupancy rate Occupancy rate 76.3% 42.1% (44.9%) Average Daily Rate Average Daily Rate Average Daily Rate (2.6%) 5,399 (Baht/Night) 5,260 (Baht/Night) Revenue Per Available Room Revenue Per Available Room Revenue Per Available Room NON- BANGKOK 4,120 (Baht/Night) 2,213 (Baht/Night) (46.3%) 15
PARAMETER : RETAIL AND COMMERCIAL Segment 1Q2019 1Q2020 Growth % Occupancy rate = 96% Occupancy rate = 87% Occupancy rate = (9.8%) Rent Rate Rent Rate Rent Rate = (7.9%) 1,416 (Baht/sq. m./mth) 1,304 (Baht/sq. m./mth) TOURIST LIFESTYLE DESTINATION Occupancy rate = 66% Occupancy rate = 68% Occupancy rate = 3.2% Rent Rate Rent Rate Rent Rate = (17.1%) 775 (Baht/sq. m./mth) 643 (Baht/sq. m./mth) COMMUNITY SHOPPING MALLS Occupancy rate = 46% Occupancy rate = 42% Occupancy rate = 9.7% Rent Rate Rent Rate = (28.1%) Rent Rate 1,058 (Baht/sq. m./mth) 1,472 (Baht/sq. m./mth) COMMUNITY MARKET Occupancy rate = 82% Occupancy rate = 85% Occupancy rate = (3.3%) Rent Rate Rent Rate Rent Rate = 3.5% 734 (Baht/sq. m./mth) 710 (Baht/sq. m./mth) 16 COMMERCIAL
REVENUE OVERVIEW ‘REVENUE IS AFFECTED BY COVID-19 EXCEPT FOR COMMERICAL’ 17 17
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