U CITY PCL GENERAL PRESENTATION OCTOBER 2018
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 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 Performance Section 3.1 Latest Full Year Financial Summary & Future Guidance Section 3.2 Latest Quarter Financial Performance & Business Updates Section 4 Future Projects Appendices Prepared by Investor Relations Department 3 U CITY PCL
WE ARE A GLOBAL CAPITAL ALLOCATOR Investing in Diversified Assets Globally Formerly operating solely in Thailand, in 2017 we expanded internationally with a presence in 10 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 96 hotels with more than 26,300 keys owned, leased or managed, 3 office buildings, and business interests spanning 15 countries globally THB 55.8bn Total Asset Value (30 June 2018) 71% of operating revenue from overseas* PRESENCE IN 10 29% EUROPEAN COUNTRIES Total of 39 hotels and 2 office Of operating revenue from Thailand* buildings Austria • PRESENCE IN 5 ASIAN Belarus • & MIDDLE EASTERN COUNTRIES Czech Republic • France • Total of 53 hotels, 1 office building, Germany • 12 condominium projects launched Poland • Thailand • Romania • Vietnam • Russia • Indonesia • Slovakia • India • United Kingdom • Oman • * Based on 1H 2018 total revenue Section 1: U City in Brief Prepared by Investor Relations Department 4 U CITY PCL
KEY MILESTONES 2018 Becoming a leading 2017 property company after acquiring the lion’s Acquired a hotel 2016 share of BTS Group’s portfolio, property business under comprising of 24 First geographic 2015 Unicorn Enterprises pan-European expansion into hotels, and a hotel (UE), which includes a • BTS Group Europe by portfolio of hotels, hotel management 1999 - 2013 became a major acquiring 33 management platform, platform shareholder Gracechurch, an Rehabilitation land bank and (35.64%) office building in residential projects London, UK 1993 • Name changed under BTS-Sansiri joint to ventures Listed on the SET “U City Public Company 1988 Limited” Company founded Section 1: U City in Brief Prepared by Investor Relations Department 5 U CITY PCL
BUSINESS OVERVIEW Hospitality Focused Portfolio at the Start of a Multi-Year Earnings Expansion Period RECURRING INCOME PROPERTY 30 JUN 2018 PROPERTY BOOK VALUE Operating Revenue (THB mn) Land Bank Hospitality Hospitality segment includes a THB 8.1bn THB 19.6bn 3,868 geographically diversified portfolio of 2,820 15.6% owned, leased and managed hotels in 37.8% 1,027 806 Europe and Asia. Alternative THB 2015 2016 2017 1H 2018 THB 4.0bn 51.9bn Office 7.7% THB 4.2bn 162 Office segment has lettable space Residential 133 8.1% comprising of 2 office buildings in THB 16.0bn 63 0 London, UK and 1 office building in 30.8% Bangkok, Thailand. 2015 2016 2017 1H 2018 1H 2018 REVENUE CONTRIBUTION RESIDENTIAL PROPERTY Hospitality THB 2,820mn Others Through our 50% stake in the BTS- 86.2% THB 320mn Sansiri JV (Sansiri JV), we develop THB condominiums near mass transit lines. 9.8% We recognise equity income or a 3,272mn Office share of profit from the JV THB 133mn 4.1% LANDBANK 64% of our land bank value is located adjacent to future or current mass transit lines and is therefore well- positioned to benefit from the ‘mass transit premium’ Note: Book Value is equity adjusted & includes Sansiri JV under Residential segment Section 1: U City in Brief Prepared by Investor Relations Department 6 U CITY PCL
STRATEGY AND 5-YEAR TARGET Poised to Emerge as Thailand’s Leading International Property Investor 5 PILLARS OF SUSTAINABLE VALUE ACCRETION 4. PARTNERSHIPS 5. MASS TRANSIT 1. INVESTMENT 2. EFFICIENT USE OF 3. SUSTAINABILITY Access to expertise and Diversified portfolio CAPITAL Respond to changes in • LINK • • new business Grow through project consumer lifestyles, • Recycle capital for future To benefit from the • • opportunities development and acquisition including digital disruption investment. ‘mass transit premium’ Reduce development and Enhance value through Environmental awareness • • • Potential for fee-based • investment risk prudent management and Benefit to communities • income. Increase long-term firm value engineering Enterprise Value/Return To • • value and synergies Maximize synergy Shareholders • 5-YEAR TARGET – Operating Revenue of THB 9,400mn, Recurring Net Profit of 1,360mn Operating Revenue Operating Revenue Development (Growth 2017 - 2022) Key Growth Drivers 20% CAGR 72% Overseas 59% Overseas From 8,648 operational keys to 26,305 28% Thailand 41% Thailand Recurring Net Profit Hospitality 5% revenue CAGR for owned hotels 15% Margin* 9,410 9,400 1,380 Full-year effect of acquisitions and rent Office 1,204 reversion 4,030 176 4,030 2,620 1,360 Share of profit from international Alternatives school, The Unicorn mixed-use building Future gross development value of THB Residential (127) 68bn FY 2017 FY 2022 CAPEX / 2017 Hospitality Office Alternatives Residential 2022 5-year aggregate of THB 14.6bn Investment Operating Revenue * Note: revenue includes share of profit in BTS-Siri JV, Keystone JV and Recurring Net Profit Property management services revenue Section 1: U City in Brief Prepared by Investor Relations Department 7 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 Performance Section 3.1 Latest Full Year Financial Summary & Future Guidance Section 3.2 Latest Quarter Financial Performance & Business Updates Section 4 Future Projects Appendices Prepared by Investor Relations Department 8 U CITY PCL
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