Frasers Property Thailand€¦ · Industrial property is gaining momentum with solid operating metrics Strengthened factory AUM occupancy rate at 75% in Dec-19 (from 72%in Dec-18),

Frasers Property Thailand

1st Quarter Fiscal Year 2020 Earnings

Three Months Ended December 31, 2019

Corporate Day 1/2020

2Frasers Property Thailand – Corporate Day 1/2020 |

Statements in this presentation constitute “forward-looking statements”, including forward-looking financial information. Such forward-looking statements and financial information involve known and unknown risks, uncertainties and other factors which may cause the actualresults, performance or achievements of Frasers Property (Thailand) Public Company Limited (“FPT”) and its subsidiaries or industry results,to be materially different from any future results, or FPT performance or achievements expressed or implied by such forward-lookingstatements and financial information. Such forward-looking statements and financial information are based on numerous assumptionsregarding the present and future business strategies and the environment in which the FPT and its subsidiaries will operate in the future.Because these statements and financial information reflect FPT’s current views concerning future events, these statements and financialinformation necessarily involve risks, uncertainties and assumptions. Actual future performance could differ materially from these forward-looking statements and financial information as a result of these risks, uncertainties and assumptions and you are cautioned not to placeundue reliance on these statements and financial information.

FPT expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statement or

financial information contained in this presentation to reflect any change in FPT’s expectations with regard thereto or any change in events,

conditions or circumstances on which any such statement or information is based, subject to compliance with all applicable laws and

regulations and/or the rules of the Stock Exchange of Thailand, the Securities and Exchange Commission and/or any other regulatory or

supervisory body or agency.

This presentation includes market and industry data and forecast that have been obtained from internal survey, reports and studies, whereappropriate, as well as market research, publicly available information and industry publications. Industry publications, surveys andforecasts generally state that the information they contain has been obtained from sources believed to be reliable, but there can be noassurance as to the accuracy or completeness of such included information. FPT has not independently verified any of the data from thirdparty sources or ascertained the underlying economic assumptions relied upon therein.

The information contained in this document is strictly confidential and is made available to the recipient on the condition that it will be heldin complete confidence. Any reproduction or distribution of this document in whole or in part, or the disclosure of any of its Presentations,without prior expressed or written consent of the Company is prohibited. The information contained in this document has been compiledfrom sources believed to be reliable. The accuracy and completeness of such information, however, is not guaranteed nor warranted.Nothing in this presentation should be construed as financial, investment, business, legal or tax advice and you should consult yourindependent advisors.

2


• Quarterly highlights

• Business updates

• Portfolio operating metrics

• Financial performance

• 2020 Outlook

• Q&A

• Special gathering on FPT’s Supachalasai townhall


Industrial property is gaining momentum with solid operating metrics

Strengthened factory AUM occupancy rate at 75% in Dec-19 (from 72% in Dec-18), and warehouse

AUM occupancy rate at 86% (from 81% in Dec-18).

Healthy Built-to-Suit development pipeline with an 11-year 13K sq.m. BTS contract secured for

Lyreco Thailand in Nov-19 and more than 50K BTS expected to sign within 2Q20.

Rising demand in FMCG, e-commerce, logistics providers and consumer products sector, well-

supported by relocation of Chinese manufacturing and demand for EEC.

Growth in recurring income provide for operational resilience

1Q20 revenue from rental and related services rose by +4.87% Y-o-Y to THB 696 million, driven by

an increase of +4.60% from industrial property sector and +5.34% from commercial property

sector with FYI center recording full occupancy.

Softened residential sales from market slowdown

Revenue from sales of real estate dipped -5.59% Y-o-Y to THB 3,546 million, but this remains

above overall dip in residential property sector of 15-30 % for 2020*.

FTREIT’s asset acquisition will bring higher management fee to FPT

FTREIT successfully acquired 80K sq.m. of high-quality assets outside the Group Company in Nov-

19. The acquired asset is 100% occupied and located in EEC Laemchabang.

Robust growth

in recurring

incomes by

+4.87% Y-o-Y

93% OCC rate for

commercial

property

portfolio (AUM)

82% OCC rate

for industrial

portfolio

(AUM)

*Source : Bangkok Post

Business updates


✓ High enquiries of new and expansion leases from existing tenants & tenants relocating from China.

✓ Enhancing services and tech initiatives to drive portfolio performance.

✓ Strong Built-to-Suit pipelines YTD, on track to reach 150K sq.m. for FY2020

✓ Development of BTS and new logistics park on track.

✓ TRA master planning in progress

Industrial Property & Related Businesses

ResidentialCommercial& Hospitality

✓ Sales softened from cyclical industries tied to macro environment, with a moderate drop far less than the broader market.

✓ A total of 6 new projects launched over the quarter worth THB 7.9 billion

✓ Pre-sales value amounted to THB 7.1 billion from 58 active projects worth THB 72 billion

✓ Total backlog awaiting to be transferred at THB 3,654 million

✓ SYM outstanding performance with ramp-up occupancy for Mitrtown office tower at 73%, while retail space almost fully secured at 94%.

✓ 100% occupancy remains for GOLD’s high-quality commercial portfolio in CBD Bangkok including FYI Center, Park Venture Ecoplex, Sathorn Square


Lyreco’s biggest distribution centre to support e-commerce business in Thailand with net leasable area of more than 13K sq m. and a storage capacity for more than 6,800 product SKUs under an 11-year leasehold agreement.

Located in a prime logistics node of FPT’s Bangplee Cluster on Bangna-Trad Road km.19.

The facility is expected to be handover in Q2-2020.



Exploring opportunities and energizing future with unique space solutions of exceptional quality.

Engaging environment with a vibrant community amidst lush greeneries.

Groundbreaking in February 2020 with target launch of ~40K sq.m. in 1st phase by Dec 2020.


Well integrated the sleek warehouse building with office spaces, retail amenities design , and green sustainability concept at the central to facilitate the community with playground, exhibition area, outdoor sport activities and shared meeting room.

The facility is expected to be handover in Q4-2020

Centralized Amenity

Outdoor Sport Activity

Popup exhibition/ event

Amphitheatre

Location

Site

Highway Entrance/Exit Point Approx. 3km from site by local road

Located in Phra-Padaeng district, only 25 min from CBD, 10 min to Thonburi and 25 min to Bangna-Trat Road.



Pinthong 5 IE

Midea130 rai

FPT ESB3 (WH)

Heating,Ventilatio,Air Conditioning Systems (HVAC)

Consumer Appliances

Robotics & Industrial

Automation

Smart Supply Chain & Other

Business

Product Segment

JV/ Partnerships with Leading

Global Brands

Companies and Brand Examples

Midea’s snapshot Onboarding Midea Group being the anchor customer for the new manufacturing park in Chonburi province

Midea facility will be developed into Midea Group’s largest home appliance manufacturing hub in Thailand & the largest intelligent technology manufacturing hub outside of China.

FPT landbank of 300 rais located next to Midea facility will provide the perfect fit for facilities to Midea’s eco-system.

Laemchabang


Accelerate growth of Data Centre business via new partner

with TCC Technology CO., Ltd

JustCo ’s mega co-working space at Samyan Mitrtown

Newly-launched space occupying six floors across 12,000 sq.m.

JustCo’s portfolio occupancy remains strong across all fully-operating centres.


Bangkok’s First Hyperscale Data Centre Campus

Portfolio operating metrics

13Frasers Property Thailand - Analyst Meeting 1/2020 |

Factory452properties

undermanagement

1.15

Dec-18 Dec-19

Portfolio Occ rate 72% 75%

WALE 1.85 Years 1.99 Years

1Q Net add 18.6K sq.m.

Dec-18 Dec-19


WALE 3.39 Years 3.30 Years

1Q Net add 148.3K sq.m.mn sq.m.AUM

Warehouseproperties

undermanagement

434

1.68mn sq.m.

AUM

FPT308

properties under

management

1.07

Dec-18 Dec-19


1Q Net add -34.6K sq.m.

Dec-18 Dec-19


1Q Net add 200.6K sq.m.*

mn sq.m.AUM

FTREIT properties under

management

578

1.76mn sq.m.

AUM*Inclusive of newly-acquired assets by FTREIT outside Frasers sponsorship totaling 80 K sq.m.

167K sq.m. YTD Net Add for total portfolio of asset under management



Breakdown of industrial property tenants

Japan32.9%

Thailand18.8%

Germany16.2%

USA5.6%

China4.4%

Others22.1%

COUNTRY/REGION

Logistic/Warehouse

Operator 32.5%

Auto 18.4%Electronics/Computer13.7%

Consumer Products 4.8%

F&B 4.5%

Others26.0%

INDUSTRY

Higher take-ups of Chinese customers

Top 20 tenants span across 7 different industries

3.09%Sep-18

3.95%Sep-19

4.43%Dec-19

70%

Of annualized rental revenue

7Different industries



4,396

3,4403,924

3,546

0

1,000

2,000

3,000

4,000

5,000

6,000

Jan-Mar Apr-Jun Jul-Sep Oct-Dec

CY2017 CY2018 CY2019

8,988

5,462

9,0297,103

0

2,000

4,000

6,000

8,000

10,000

12,000

Jan-Mar Apr-Jun Jul-Sep Oct-Dec

CY2017 CY2018 CY2019

Residential Presale Residential RevenueResidential Project

Launch Plan

7,307 9,029 7,103

Oct - Dec 18 Jul - Sep 19 Oct - Dec 19

(THB mn)

7,103 MB Presale in 3 months

3% Y-o-Y

(THB mn)

3,756 3,924 3,546

Oct - Dec 18 Jul - Sep 19 Oct - Dec 19

3,546 MB Revenue 3 months

(THB mn)

2

43

2

1

3

21

21 1

Oct-Dec19 (A)

Jan-Mar20 (F)

Apr-Jun20 (F)

Jul-Sep 20(F)

TH TW SDH Upcountry

38% Y-o-Y21% Q-o-Q

(THB mn)6% Y-o-Y

10% Q-o-Q

10 9

4 6

23

4

4

FY2019 (A) FY2020 (F)

Presale as of Calendar Year Period Revenue as of Calendar Year Period

7,900 5,300

28,600

FY2020

6,300 9,100

20,700


Occ rate :

99%Asking rent :

THB 1,100/sq.m.

Occ rate :

100%Asking rent :

THB 1,500/sq.m.

Occ rate :

91%Asking rent :

THB 600/sq.m.

Occ rate :

99%Asking rent :

THB 900/sq.m.

Occ rate :

73%Asking rent :

THB 1,200/sq.m.

REIT Management

Secure almost ofOffice Tenants 73%

Secure almost ofRetail Tenants(8% on negotiate)

94%

Triple Y ResidencePresale & Transfer 71%

Financial performance


1,253 1,7986101,710

10,282

15,515714

960

415

566

532

996

9MFY18 FY19

Industrial property business Gain on sales of IP assets Residential property business

Commercial property business Hospitality business Other income

423 442889

3,756

3,546

288

306

144144

171171

1Q19 1Q20

1,135 308

2,144

3,484

1Q19 1Q20 9MFY18 FY19

Revenue Structure Net Profit

EPS**

(THB mn)(THB mn)

(THB)

**Calculated by dividing profit attributable to owners of the company over number of paid-up shares

0.37 0.14 0.36

0.96

1Q19 1Q20 9MFY18 FY19

7.5% 9.6% 9.1% 8.3%15.7% 0.0% 4.4% 7.9%

66.2% 76.9% 74.5%72.0%

5.1% 6.6% 5.2% 4.5%2.5% 3.1% 3.0% 2.6%3.0% 3.7% 3.9% 4.6%

1Q19 1Q20 9MFY18 FY19

-72.9% Y-o-Y

-62.1%Y-o-Y

-18.7% Y-o-Y

-3.6%* Y-o-Y

*Normalized revenue excluding gain from sales of properties to FTREIT in 1Q19

+56% Y-o-Y

+62% Y-o-Y

+166.3% Y-o-Y

21,545

13,8064,6095,671


7,475

4,504 3,332

30 Sep 18 30 Sep 19 31 Dec 19

(THB mn)

(THB mn)

0.47

1.63 1.79

30 Sep 18 30 Sep 19 31 Dec 19

Net IBD/ E*

*Calculated by a ratio of total loans, borrowings and liability under financial lease, net of cash & cash equivalents & current investment, to total shareholders’ equity

Cash & Current Investments Gearing Ratio

27,11550,024 53,477

14,138

14,492 13,94841,397

27,870 28,024

82,650 92,386 95,449

30 Sep 19 30 Sep 19 31 Dec 19IBD Non-IBD Shareholder's Equity Total assets

30 Sep 19 31 Dec 19

Enlarging asset from residential project under construction

Balance Sheet Composition

30 Sep 18


Profit & Loss statement

(THB mn)

1Q20

(Oct - Dec 19)

1Q19

(Oct -Dec 18)% Remark

Total revenue 4,609 5,671 ▼ 19%• Residential sales dropped far less than the broader sector that

is facing major headwinds.Revenue from sales of real estate 3,546 3,756 ▼ 6%

Rental and related service revenue 696 663 ▲ 5%• Healthy growth in recurring income driven by +4.60% increase

from industrial property and +5.34% from commercial property

Revenue from hotel business 144 144 -

Management fee income 175 131 ▲ 34%• Growth in management fee from higher asset size of industrial

portfolio and income from management of SYM

Gain on sales of properties - 889 ▼ 100%• No gain on sales of properties as there is no asset recycling to

FTREIT in 1Q20.

Share of profits of associates /JV, net of

unrealized gains on sales of properties 5 (114) ▲ 104%

• No unrealized gain on sales as there is no asset recycling to

FTREIT in 1Q20.

Finance cost 262 153 ▲ 72% • Higher interest from new debenture issued.

Profit for the year 308 1,135 ▼ 73%

Profit attributable to major shareholder 283 679 ▼ 58%

Net profit margin* 6.13% 11.98% ▼ 5.5 pp

Earnings per share (THB) 0.14 0.37 ▼ 0.23

*Calculated by profit attributable to owner of the company over total revenue

2020 Outlook


Note: *Exports and imports in terms of USD (BOP basis)

Source: EIC analysis as of 4 February 2020 suggesting downward forecast figures from 2019-nCoV impact

Unit : %YOY2019F 2020F

• GDP 2.5 2.1

• Private Consumption 4.2 2.5

• Private Investment 2.2 0.9

• Government Consumption

1.8 2.2

• Government Investment

-0.5 3.9

• Export of goods* -3.3 -1.0

• Tourist Arrivals 4.3 -4.6

• Imports of goods* -5.3 -2.7

• Headline Inflation 0.7 0.5

Breakdown of Total Export Value by Sector 2019 vs. 2018

9%

8%

14%

10%

14%3%

42%

2019

9%7%

15%

10%

15%3%

41%

2018

Agri

F&B

Electronics

Electric Appliance

AutoMachinery

Others

Source : Trade report, MOC

Foreign Investment from Major Countries (Foreign Equity >=10%)

35

3,7

90

46

6,5

10

31

4,1

30

37

4,3

40

2018(Jan-Sep)

2019(Jan-Sep)

Net Application Application Approved

1,0481,165

1,118

1,074

TH

B m

n

#Projects

Manufacturing Production Index (MPI) Capacity Utilization Index

Private Investment Index (PII) Business Confidence Index

Source : TRADINGECONOMIC.COM Source : TRADINGECONOMIC.COM

Source : TRADINGECONOMIC.COM Source : TRADINGECONOMIC.COM

Apr-19 Jul-19 Oct-19 Jan-20

Jan-19 Apr-19 Jul-19 Oct-19 Dec-19

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 19 19 19 19 19 19 19 19 19 19 19 19

Source : BOINet Application Application Approved

Apr-19 Jul-19 Oct-19 Jan-20


Export

Export

Export

ExportExport

Relocation of supply chain from trade war effect

Infrastructure connectivity gives rise to robust demand for logistic, residential and

commercial space

Impact assessment from nCoVseverity remains prematured

Growing E-Commerce userscreates opportunities

for new related investments

Ongoing mega-projects and incentive from EEC & BOI will boost domestic investment

2.0 2.2 2.6 2.8 3.23.8

9.6% 10.4%14.0% 7.9% 14.0%

20.0%

Y2014 Y2015 Y2016 Y2017 Y2018 Y2019P

% g

row

th r

ate

Tri

llio

n b

ah

t

P= Predicted

Source : ETDA

Source : Bangkok Post

Dual Track Railway Lam Cha Bang Seaport (Phase III)

High-speed Rail

Express Way/Motorway

Suvarnnabhumi & U-Tapao Airport

1Q-2020 Thai economy faced series of cuts in growth forecast from shrinking tourists due to effect from nCov, in addition to delay of government projects.

Extension of the tax filing

Tax deductions from expenses

on local seminar

Source : Bangkok Post

Tax deduction for renovation

expense at 1.5x

Reduction of jet fuel excise taxon domestic flights

Thai government released 4 tax schemes to boost recovery


40k sq.m. NLA

Mar-2020

60k sq.m. GFA

.

Deliverable timeline

75k sq.m.

Sep-2020

40k sq.m. (Phase 1)

Q2/2021

30k sq.m. (Phase1) 20k sq.m. (Phase 2)

.

13k sq.m.

TownshipMaster planning

Q3/2021Dec-2020

High value project line-ups to deliver returns from 2020

Jul-2020

Bangkok Logistic Park


2020 Business Strategy

NEO HOME

สวย ครบ คุม้ ใกล ้

CITY HOME

ขยายตลาด เนน้ท าเลในเมอืง

Single Detached House

ขยายอาณาจกัรแห่งใหม ่บา้นเดี่ยว (พระราม 2)

Townhome Market Expansion

โซนตะวนัออก ตะวนัออกเฉียงเหนือ

High potential UPC Projects

ขยายตลาดต่างจงัหวดั ท าเลใหมท่ีม่ศีกัยภาพ

Residential property market assessment

Low policy interest rate at 1.00%

Government spending on mass transit

expansion

Transfer and Mortgage Fee reduce to 0.01%* [<3MB housing value]

“Baan Dee Mee Down”Offering up to THB 50,000

cash rebate for down payment

Lower mortgage interest rates at 2.5%

from GHB

BoT relaxes LTV rule for mortgages**

**Source : Bangkok Post


Looking forward 2020

Investor appetite for prime industrial property remains strong

- Active asset enhancement initiative and smart solutions to maintain Industrial Property AUM occupancy rate above 80%

- Strong IP pipeline driven by organic growth from existing tenants & new demand following EEC and US-China trade war. Built-to-Suit target at 150,000 sq.m.

Residential sales conservatively projected a mid-single-digit growth driven by unique value proposition to realign with economic and competitors.

Leverage existing partnership to drive future growth

International expansion to achieve better profitability in high growth markets

Deleveraging initiatives to bring down gearing with proceeds from assets recycling and sales of land being the main funding source for new expansion.

Experience matters.

Documents

Frasers Property Thailand€¦ · Industrial property is gaining momentum with solid operating metrics Strengthened factory AUM occupancy rate at 75% in Dec-19 (from 72%in Dec-18),