APRIL 2018 U CITY PCL “A leading, geographically diversified, integrated property developer and investor, capturing Thailand’s redefining infrastructure landscape”
IR CONTACT Address: U City Public Company Limited IR Department 20 th Floor, TST Tower, 21 Soi Choei Phuang, Viphavadi-Rangsit Rd. Chomphon, Chatuchak, Bangkok, Thailand 10900 Telephone: +66(0) 2273 8838 #2301 Fax: +66(0) 2273 8858 Email: ir@ucity.co.th Website: www.ucity.co.th DISCLAIMER 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. Prepared by Investor Relations Department 2 U CITY PCL
CONTENTS Section 1 U City in Brief Section 2 Business Profile Section 2.1 Recurring Income Property Business Hospitality Office Section 2.2 Residential Property Business Section 2.3 Land Bank Section 3 Financial Summary Section 4 Future Projects Appendices Prepared by Investor Relations Department 3 U CITY PCL
KEY INVESTMENT FEATURES Following Entire Business Transfer (EBT) of Unicorn Enterprises Limited (UE) A burgeoning property investment and development company with the 2 nd highest number of keys in Thailand that includes: Geographically diversified hotels in major tourism markets that are rapidly • growing under brands exuding an Asian and European flair Two dynamic and enterprising hotel management platforms that are • mutually complementary, offering strategic flexibility and a springboard for global expansion An integrated property investment strategy that is expected to grow revenues at a CAGR of 20% over the next 5 years by: Combing long-term, diversified, yield accretive recurring income assets • that are segmentally diversified against business cycles and are amplified by a shorter turnaround condominium development for sales business that are predominantly along current and future mass transit lines Benefitting from BTS Group’s strategic partnership as the largest single • shareholder and pre-eminent operator of mass transit lines in Thailand Utilising land bank that is anchored on an extraordinary period of mass • transit expansion in Thailand to benefit from ‘mass transit premium’ value 67% catalyst Sustainable expansion with planned gross development value of THB 87.4bn (USD 2.7bn) 1 facilitated by: Land Bank Value Located Near Currently Operating and Future Solid balance sheet, allowing for opportunistic acquisitions with the • Mass Transit Lines opportunity to securitise asset portfolio for capital recycling and fee-based income from managing property funds/REITS 1 Exchange rate at THB 31.21 per USD as of 19 Mar 2017 Section 1: U City in Brief Prepared by Investor Relations Department 4 U CITY PCL
KEY MILESTONES 2018 Becoming a leading 2017 property investor after Acquired a hotel consolidating with the 2016 lion’s share of BTS portfolio, Group’s property comprising of 24 First geographic 2015 business under Unicorn pan-European expansion into hotels, and a hotel Enterprises (UE), which • BTS Group Europe by includes a portfolio of 1999 - 2013 management became a major acquiring 33 hotels, hotel platform shareholder Gracechurch, an Rehabilitation management platform, (35.64%) office building in land bank and London, UK 1993 • Name changed residential projects to under BTS-Sansiri joint Listed on the SET “U City Public ventures Company 1988 Limited” Company founded Section 1: U City in Brief Prepared by Investor Relations Department 5 U CITY PCL
UNICORN ENTERPRISES TRANSACTION Overview of Assets Acquired and Divested 35.64% 100% Hotel (7%) Hotel Developing Divestment Selected Assets THAILAND INTERNATIONAL The Unicorn HOTEL • • U Sathorn • 24 hotels under Vienna • U Chiang Mai Mo Chit • Anantara Chiang Mai • Approximate Transaction • U Inchantree Karnchanaburi House & Vienna House Easy Complex • Avani Khon Kaen Value Roi Chak • Office (6%) RESIDENTIAL THB 12,917mn Sam THAILAND • Park Ramindra • TST Tower • Eastin Grand Sathorn • Park Arun Boulevard Services (2%) Under Development (13%) Office Land Bank • Anantara Serviced Suite • Absolute Hotel Services Eastin Thana City Golf • 33 Gracechurch St. UK Sukhumvit • • • Thana City Golf & Sports Club Resort Bangkok • 6-14 Underwood St. UK Suksawad LAND BANK • • Tanayong Property Management International School Khukot – • Nakorn Ratchasrima • • Bang • Charansanitwong • Service Krachao • Chonburi Residential (55%) Land Bank (17%) • Vienna International Hotel Management • 21 BTS-SANSIRI JV Ratburana • Agreed Divestment Companies Khao Yai, Pakchong, • Value Nakorn Ratchasima THB 4,140mn Section 1: U City in Brief Prepared by Investor Relations Department 6 U CITY PCL
BUSINESS OVERVIEW Hospitality Focused Portfolio at the Start of a Multi-Year Earnings Expansion Period RECURRING INCOME PROPERTY Operating Revenue (THB mn) FY 2017 REVENUE CONTRIBUTION Hospitality 92 Hotels totaling over Hospitality 19,200 keys includes a portfolio of 3,868 THB 3,868mn owned, leased and managed hotels in Others Europe and Asia. THB 423mn 86.9% 1,027 806 THB 9.5% 4,453mn Office 2015 2016 2017 THB 162mn Office 27,800 sqm of lettable space comprising of 2 office buildings in 162 3.6% London, UK and 1 office building in 63 Bangkok, Thailand. 0 2015 2016 2017 RESIDENTIAL PROPERTY DECEMBER 2017 BOOK VALUE BREAKDOWN Operating Revenue (THB mn) Hospitality We own a 50% stake in the BTS- THB 18.4bn Land bank Sansiri JV, which develops 159 THB 10.0bn condominiums near mass transit lines 57.0% and has currently a presold 30.9% condominium backlog of THB 26.1bn THB 0 0 32.3bn 2015 2016 2017 LANDBANK Residential Office Our land bank totals THB 7.4bn or 766.1 Rai or 1.23mn sqm of land, which is sufficient for THB 0.5bn THB 3.4bn over 5 years of development. 67% of land bank value is located adjacent to future or current 1.6% mass transit lines and is therefore well- positioned to benefit from the ‘mass transit premium’ 10.5% Note: the charts above are not adjusted for UE transaction Section 1: U City in Brief Prepared by Investor Relations Department 7 U CITY PCL
DOMESTIC AND INTERNATIONAL PROPERTY PORTFOLIO Formerly operating solely in Thailand, in 2017 we expanded internationally with a presence in 12 European countries and 5 Asian and Middle Eastern countries with assets spanning from hotels across various ownership models to office buildings. In March 2018, we acquired the majority of BTS’ property business, thereby taking U City’s presence to 92 hotels with more than 19,200 keys owned, leased or managed, 3 office buildings and business interests spanning 17 countries globally 72% of operating revenue from Overseas* PRESENCE IN 12 EUROPEAN COUNTRIES 28% Total of 41 hotels with 7,912 keys and 11,700 sqm in office space Of operating revenue from Thailand* Austria • PRESENCE IN 5 ASIAN Belarus • & MIDDLE EASTERN COUNTRIES* Czech Republic • France • Total of 51 hotels with 11,332 Keys Germany • and 16,100 sqm in office space Liechtenstein • Poland • Thailand • Romania • Vietnam • Russia • Indonesia • Slovakia • India • Turkey • Oman • United Kingdom • * Based on FY 2017 total revenue Section 1: U City in Brief Prepared by Investor Relations Department 8 U CITY PCL
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