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WHA Corporation PCL Opportunity Day Q3’2016 Result
1
“Your Ultimate Solution Partner”
Disclaimers WHA Group
The information contained in this presentation is for information purposes only and does not constitute an offer or invitation to sell or the solicitation
of an offer or invitation to purchase or subscribe for share in WHA Corporation Public Company Limited (“WHA” and shares in WHA, “shares”) in
any jurisdiction nor should it or any part of it form the basis of, or be relied upon in any connection with, any contract or commitment whatsoever.
In addition, this presentation contains projections and forward-looking statements that reflect the Company's current views with respect to future
events and financial performance. These views are based on a number of estimates and current assumptions which are subject to business,
economic and competitive uncertainties and contingencies as well as various risks and these may change over time and in many cases are outside
the control of the Company and its directors. You are cautioned not to place undue reliance on these forward looking statements, which are based
on the current view of the management of the Company on future events. No assurance can be given that future events will occur, that projections
will be achieved, or that the Company's assumptions are correct. The Company does not assume any responsibility to amend, modify or revise any
forward-looking statements, on the basis of any subsequent developments, information or events, or otherwise. These statements can be
recognized by the use of words such as “expects,” “plans,” “will,” “estimates,” “projects,” or words of similar meaning. Such forward-looking
statements are not guarantees of future performance and actual results may differ from those forecast and projected or in the forward-looking
statements as a result of various factors and assumptions.
2
Agenda
I. WHA Group Overview
IV. Recent Developments & Key Events
VI. Appendix – Financial Statements
V. Q3’ 2016 Financial Performance
II. Group Business Platform and Strategy
III. Updated Business Performance
iv) Digital Business
i) Logistics & Industrial Properties Business
iii) Utilities & Power Business
ii) Industrial Estate Business
3
About WHA Group WHA Group Overview
Largest fully-integrated industrial and logistic facility developer
in Thailand with full range of complement business supported by
world-class customers
Thailand’s No.1 Industrial Developer with the largest market share
since 2008.
Pioneer of the Built-to-Suit concept with the world-class standard
and Industrial Clusters concept to the Thai market.
Exclusive Provider of Utilities in all Operating Estates and an
active power investor to capture the growth in power business.
Our core competency lies in best-in-class quality, prime logistic
location, and the integrated one-stop service solution.
WHA is a SET-50 listed company with a market capitalization of THB
45.8 billion/1.
Remarks:/1 Information as of November 11, 2016
WHA GROUP AT A GLANCE
4
New Branding
5
WHA Group
Our 4 Integrated Business Hubs
6
WHA Group Overview
“#1 Logistics Developer
offering Varieties of Premium
Facilities uniquely serving our
Clients Needs”
Logistics
“#1 Industrial Utilities
Provider and Active Strategic
Power Investor “
Utilities and Power
“Group Spearhead for the
Upcoming New Digital
Economy”
Digital
“#1 Industrial Estate Developer
delivering World-Class Solutions to
Industrial Customers”
Industrial Development
Existing 8 operating and 4 developing and new expansion IEs in strategic cluster to serve key sectors in Thailand - total of 45,269 rais (18,108 acres; 7,329 Ha)
Net sellable area approx. 10,000 rais (3,950 acres; 1,600 Ha) consisting of 3,300 rais of operating IE and 6,700 rais developing IE
Potential geographical expansion in cross-border provinces and overseas investment
Warehouse in IEs and logistics park
Group Structure WHA Group Overview
Built-to-Suit (BTSW): World-class standard warehouses and factories
Built-to-Suit (BTSF): Premium quality factories for tenants with specific requirements
Warehouse Farm: Combination of Built-to-Suit and Ready-Built Projects at the same site
Built-to-Own (BTO):Warehouse or factory customized to client’s special needs then transfer the asset to the client
Built-to-Suit Office: Offices that are customized to customers’ specific requirements i.e. Multi-purpose offices
Ready-Built factory and warehouse in IEs and logistics park
Exclusive utilities provider in the industrial estates with high margin products and steady growth
Total demand of raw water, potable/clarified water and waste water treatment over 90 mm cubic meter/year
Active power investor with strategic partnership with reputable partners i.e. Glow Energy, Gulf Energy, B-Grimm
319 Operational Equity MW in 2015. 543 Operational Equity MW by 2019 from recent joint venture arrangements
To become one-stop service for Data Center developer and provider by way of business collaboration with reputable partners
To provide comprehensive service by installation of fiber optic in industrial estates and part of Local Loop business
Be part of the Government Initiative to promote digital economy
Industrial Estate Hub Utilities & Power Hub Logistics Hub Digital Platform
7
More than 2 million sq.m. leasable area under owned and managed asset
Existing 8 operating with 4 developing IEs with net sellable area approx. 10,000 rais (3,950 acres; 1,600 Ha)
Water: Over 90mm cubic m/year Power: 543 Equity MW with 319 Operational equity MW
Upcoming Tier-3 Data Centers in 3 locations
Group Location Map WHA Group Overview
8
Group Structure – Operating Companies WHA Group Overview
Warehouse
Asia Alliance Registered and
Paid-up
Capital – THB 310
mm
WHA
Alliance Registered and
Paid-up
Capital – THB 260
mm
WHA KPN Alliance
Central WHA
Alliance
PT WHA
International
Indonesia/1
Registered and Paid-up
Capital – US 2.0
mm
WHAPF
NAV per unit –THB 10.07/1
Paid-Up Capital–THB
9,390.6 mm
WHART
NAV per unit –THB 9.811
Paid-Up Capital–THB 6,233.3
mm/2
WHABT
NAV per unit –THB 9.98/1
Paid-Up Capital–THB 1,982.1
mm/2
99.9% 99.9% 99.9% 99.9%
15.00% 15.00%
15.00%
Remarks: /1 NAV per unit as of November 11, 2016 /2 Including the 3rd capital reduction in 2016
9
WHA Daiwa
Logistics Property
WHA Infonite
Holding
Registered – THB 1 mm
Paid-up – THB 1 mm
Hemaraj Land and
Development PCL.
Registered – THB 6,000mm
paid-up Cap – THB 3,882mm
98.54%
89.99%
Core Business
WHA Corporation
PCL
Registered – THB 1,567.8 mm
paid-up Cap – THB 1,432.2 mm
WHAUP
Registered – THB 3,825 mm
paid-up Cap – THB 3,200 mm
99.99%
Property Funds and REITs
HPF
NAV per unit –THB 10.191
Paid-Up Capital–THB
4,700.0 mm
23.00%
HREIT (upcoming)
NAV per unit –N/A
Paid-Up Capital–THB 5,693.6
mm
15.00%
JV Collaborations - Logistics
Gheco-One
Glow IPP
Houy Ho Power
GJP NLL
Gulf Solar
WHA Gunkul
Bowin Clean
Energy
JV Collaborations – Utilities & Power
65.00% 50.00%
51.00%
35.00%
5.00%
12.75%
25.01%
25.01%
75.00%
25.01%
Chonburi
Clean Energy
33.33%
Group Asset Management Platform WHA Group Overview
Asset Type Built-to-Suit warehouse/
factory
Built-to-Suit warehouse/
factory
Ready-Built factory/
warehouse Office building
Ready-Built factory/
warehouse
Paid-up Capital THB 6,233.3 mm /3
+(THB 3,104.7 mm) /7 THB 9,390.6mm THB 4,700.0mm THB 1,982.1 mm /3 THB 5,693.6 mm
Total Fund Raised THB 9,501.7 mm
+(THB 4,459.7 mm) THB 9,932.8mm THB 4,700.0mm THB 2,525mm THB 8,018.6 mm
NAV per unit/2 THB 9.81 THB 10.07 THB 10.19 THB 9.98 -
Market Price per
unit/4
THB 10.10 THB 11.20 THB 8.40 THB 9.90 -
Established Year 2014 2010 2013 2015 [2016]
Ownership WHA holds 15% WHA holds 15% Hemaraj holds 23% WHA holds 15% Hemaraj will hold 15%
Property Manager WHA Corporation PCL. WHA Corporation PCL. Hemaraj Land And
Development PCL.
CBRE/ WHA Corporation
PCL.
Hemaraj Land And
Development PCL.
REIT Manager WHA Real Estate
Management
Co., Ltd. /5
- -
WHA Real Estate
Management
Co., Ltd. /5
Hemaraj REIT
Management
Co., Ltd. /6
WHART
/1 Information as of November 11, 2016
/2 NAV per unit as of November 11, 2016
/3 Including the 3rd capital reduction in 2016
WHA has currently established 2 property funds and 2 REITs with the total fund raised c. THB 26,659.5 mm/1.
H-REIT is in the process, expected to complete by November 2016
H-REIT/1 HPF WHABT WHAPF
EXISTING REIT & PROPERTY FUND UPCOMING REIT
/4 Information as of November 11, 2016
/5 WHA holds 99.99% in WHA Real Estate Management Co., Ltd.
/6 Hemaraj Land And Development PCL. holds 99.99% in Hemaraj REIT Management Co., Ltd.
/7 Expected figures from the second capital injection of WHART
10 Remarks:
Shareholding Information WHA Group Overview
Shareholding Information
Major Shareholder/2
Shareholder No. of Share/3 %
1) WHA Holding Co., Ltd. 2,979,083,491 20.8
2) Ms. Jareeporn Jarukornsakul 1,624,989,569 11.4
3) Mr. Somyos Anantaprayoon 1,090,894,523 7.6
4) UBS AG HONG KONG BRANCH 422,536,360 3.0
5) CREDIT SUISSE AG, SINGAPORE BRANCH 650,337,000 4.5
6) STATE STREET BANK EUROPE LIMITED 1,384,123,015 9.7
5) Mr. Sompong Chonkadeedumrongkul 475,000,000 3.0
8) Thai NVDR Co., Ltd. 349,638,515 2.4
9) SCB Securities 299,305,200 2.1
10) Ms. Jaruwan Jarukornsakul 298,898,100 2.1
• Major shareholder 47.3 %
• Other pre-IPO shareholder /1 6.2%
• Post-IPO Investors 46.5%
Share Overview
Remarks: /1 Relatives and management directors are included in other pre-IPO shareholder portion . /2 Shareholder information as of October 11, 2016 /3 The Number of share adjusted impact of par split with new par value of THB 0.1 /4 Major shareholder holds 47.24% of the total outstanding shares while parts of major shareholders shares are hold via UBS AG Hong Kong Branch and Credit Suisse AG Singapore Branch. /5 Market capitalization are calculated based on market price on October 25, 2016 /6 The price is adjusted according to par split from THB 1 to THB 0.1 per share
Ticker Reuter WHA.BK
Ticker Bloomberg WHA TB
Par Value THB 0.1
Market Capitalization/5 THB 46,691.12 mm
Market Capitalization USD 1,332 mm
Average 1-Year Daily Turnover THB 221.10 mm
Share Issued (share) 14,322,430,077
12-Month High/Low Price /6 THB 3.70/2.56
Foreign Limit 49%
Dividend Policy ≥40% of Net profit
Major Shareholder /4
Paid-up Capital
(THB 1,432.2 mm)
11
Agenda
I. WHA Group Overview
IV. Recent Developments & Key Events
V. Q3’ 2016 Financial Performance
II. Group Business Platform and Strategy
III. Updated Business Performance
iv) Digital Business
i) Logistics & Industrial Properties Business
iii) Utilities & Power Business
ii) Industrial Estate Business
12
VI. Appendix – Financial Statements
Group Business Platform Group Business Platform and Strategy
Fully Integrated Industrial & Logistics Facility Developer to Provide Total Solution for Both Inbound And Outbound Investment Opportunities
Realignment of Recurring Income Base from Industrial, Logistic, Utility & Power, And Digital Hub
Asset-Light Model by Recycling Capital to Enhance Shareholder Value
New Product Initiatives by way of Partnership with Various Strategic Investors
1
2
3
4
13
Group Business Platform and Strategy
Fully Integrated Industrial & Logistics Facilities Developer ready for inbound and Outbound Investment Opportunities
Upward Integration Complementary
Business
Industrial Estate
Built-to-suit
• Utilities (Water)
• Power
Horizontal
Integration
• Warehouses
• Factories Ready-
built Factories
Ready-
built warehouses
• Move up value chain by immediately having land bank located in
strategic locations (Central and Eastern region, all of which are
non-flood area)
• Apart from 538 equity MW under IPP and SPP in our portfolio
which will grow in line with the growth of IEs, we also focus on the
high-value product from utilities and power business particularly
renewable energy e.g. waste-to-energy and solar rooftop to
generate stable income while serving the customers on the
industrial estates
• Increase its product variety of Ready-Built warehouse and factory
to cover full logistic value chain and expand its customer base
WHA Together with Hemaraj Becomes Fully-Integrated
Industrial & Logistic Developer
• WHA together with Hemaraj would be renowned for its excellence
in providing total solutions for industrial and trade inbound
investments
• Increase our readiness to spearhead neighboring countries
expansion i.e. Cambodia and Vietnam by leveraging on current
Hemaraj’s effort to create IE platform in those countries
• Upon the opening of AEC in late 2015 and future infrastructure
development among ASEAN countries, Thailand would be
investment hub of increasing importance and thus we would be
more than ready to tap these new opportunities
WHA is Well-Equipped for Both Inbound and Outbound
Investment Opportunities
Enhance WHA’s built-to-suit warehouse and factory business by
increase product variety and move up value chain
14
Realignment of Recurring Income from Industrial, Logistics, Utilities & Power and Digital Hubs
• To become one-stop service for
Data Center developer together
with managed services and
provider by way of business
collaboration with reputable
partners
• To Capitalized on the fully
integrated business model with
the group to lay the fiber optic
network on local loop business in
Industrial Estates
• Existing 8 operating and 4
developing and new expansion
IEs in strategic cluster to serve key
sectors in Thailand - total of 45,269
rais (18,108 acres)
• Net sellable area approx. approx.
10,000 rais (3,950 acres; 1,600
Ha) consisting of 3,300 rais of
operating IE and 6,700 rais
developing IE
• Potential geographical expansion
in cross-border provinces and
overseas investment
“Thailand No.1 Industrial Estate
Developer with Largest Market Share since 2008”
“Proactive in Providing
Comprehensive Data Solutions and
Platform to Leading MNCs and Thai Companies”
• Exclusive utilities provider in the
industrial estates with higher
margin products and steady
growth
• Active power investor with
strategic partnership with reputable
partners i.e. Suez Energy, Gulf-
Mitsui, J-Power, and B-Grimm
• Focus more on renewable energy
e.g. waste-to-energy and solar
rooftop with secured feedstock
• Built-to-Suit distribution center and
warehouse in prime location to help
customers optimize long-term logistic
cost
• Built-to-Suit factory with cross referral
of customer base for Hemaraj in high
value sectors e.g. automotive
• More Built-to-Suit sophisticated
products i.e. cold storage, multi-temp
DC and E-Commerce DC
• Ready-Built factory and warehouse in
IEs and logistic park
• New geographical expansion e.g.
Indonesia and Vietnam
“Thailand No.1 Built-to-suit Logistics
Facilities Developer Who Pioneered This New Concept to Thai Market since 2006”
“Sole Supplier of Water and other Utilities
Infrastructures for security to our
customers in Industrial Estates & Strong Partnership with leading power operators”
Fully Integrated Business
Model
15
Group Business Platform and Strategy
Asset-Light Model by Recycling Capital to Enhance Shareholder Value
Highly Stable CF from
Investment
Utilize Recurring
Income Stream
Well-balanced Portfolio and
Capital Structure
All Invested Assets
Generate Revenue
Strong track record in
terms of occupancy rate
To hold minimal non-
income generating
assets
Strong Stability of
Rental Profit
Secured LT contract
with growth in rental
rate
Attractive EBITDA
margin
Low maintenance cost
Capital Structure
Optimization
Asset-Optimization
Model
Optimization of return on equity (ROE) to shareholder through the asset monetization program via
Property Fund/ REIT to optimize long-term capital structure and achieve return-enhancing strategy
Rental Business Developing Business
Expedited growth of investment
Earning from asset monetization
Recurring income from dividend and asset
management fee
Complementary business model of property company with strong CF stability and Property Fund/ REIT leads
to accelerated growth, high efficiency, and high margin business model capturing full value chain
Capital Recycling Model
Through Property
Fund/REIT
16
Group Business Platform and Strategy
New Product Initiatives by way of Partnerships with various strategic Investors
Built-to-Suit
Logistics
Facilities - Warehouse - Distribution Center
Built-to-Suit
Factory
Warehouse Farm
Other Recurring
Asset - Office
Other
Potential
Utilities
Products
Utility Business
Industrial Estate
Power
Business
Renewable
Energy (VSPP) + +
Ready-built
warehouse & factory
+ Data
Center
Other Multi-
Model
Logistic
Mode
- Right of use from
gas and steam
pipeline
- Revenue-sharing
from
telecommunication cable
- Waste-to-
energy - Solar Rooftop
New product initiatives Spearheading into
new frontiers or
entering into new
business ventures,
WHA will leverage
on the business
partnership with local
partners and/or
strategic investors to
succeed in the new
initiatives
Strategic Partnership
- Common
Service
- Advance
Service
- Platform as a
service
- Sea Port - Railway
17
Group Business Platform and Strategy
Key Developments in Thailand
18
New Growth Engine: 10 Targeted Industries Eastern Economic Corridor (EEC)
• The corridor through Chon Buri, Rayong and Chachoengsao has been designated for development as a high-tech industry cluster, to become Asean's leading economic zone for industrial, infrastructure and urban development
• The project is aimed to accommodate the 10 targeted industries
• The EEC will also rely on infrastructure development, including air, land, rai and water links to cut logistic cost
• The EEC is also set to become a water transport hub, linking the Dawei deep-sea port in Myanmar with Sihanoukville in Cambodia and Vung Tau port in Vietnam
Source: BOI, NESDB, Fiscal Policy Office, and MOF
1 2
Group Business Platform and Strategy
Key Developments in Thailand (Cont’d)
MOTORWAY
Pattaya – Maptaphut
Saraburi – Nakorn Rachasima
Bang Yai – Kanchanaburi
DOUBLE-TRACK RAIL
Chachoengsao – Klong Sib Kao – Kang Koi
Hua Mark – Chachoengsao
Chachoengsao – Sri Racha – Laem Chabang
HIGH-SPEED TRAIN
Bangkok – Rayong
Bangkok – Nakhon Ratchasima
Bangkok – Chiang Mai
AIRPORT
U-Tapao
Aerospace Cluster
MRO
OEM
Air Cargo & Logistics Hub
SEAPORT
Laem Chabang Ph.3
Maptaphut Ph.3
1
2
3
4
5
Development & Linkage of Multi-Model Transportation Network in Chonburi & Rayong and Other Strategic Locations Promoted by Government Initiatives
3
Group Business Platform and Strategy
19
Key Developments in Thailand (Cont’d)
• Activity classified under eligible BOI categories
• Located in the designated provinces for each relevant clusters
• 13-year* corporate tax exemption and additional 5-year reduction of 50%
• Import duty exemption on machinery
• Double deduction on utility costs
• Deduction for qualified infrastructure costs
• Leasehold max 99 years
• Personal income tax exemption for renowned specialists who work in the specified areas both Thai and Foreign
• Have cooperation with academic institutions / research institutions
• Relaxation on foreign currency
1
2
3
4
5
6
7
8
9
10
Newly Proposed BOI Scheme 4
Group Business Platform and Strategy
20
21
Group Strategy
Logistics Hub
Expand to ASEAN Countries and new area including Indonesia, Vietnam, Myanmar, Malaysia and Cambodia
Capitalize on government policy focusing on high-value industry clusters
Diversify and focus on high-value rental properties
Industrial Estate Hub
Extend our Leadership as Thailand’s No 1 Industrial Estate in Thailand
Establish our premium brand in strategic regional countries to expand our international footstep
Expand towards high-value integrated property projects (“Specialized Estates”)
Utilities & Power Hub Integrate solutions in utilities and power
businesses, expand to other market segments with world-class operation and services
Expand to strategic regional countries by leveraging on our WHA Group brand , expertise and customer base
Digital Hub • Be leader in Data centers with linkage in the region
• Be leader in Managed services with Platform and Data Centers as Cloud Service provider
Group Business Platform and Strategy
Agenda
22
I. WHA Group Overview
IV. Recent Developments & Key Events
V. Q3’ 2016 Financial Performance
II. Group Business Platform and Strategy
III. Updated Business Performance
iv) Digital Business
i) Logistics & Industrial Properties Business
iii) Utilities & Power Business
ii) Industrial Estate Business
VI. Appendix – Financial Statements
Summary of Business Performance 2015 Updated Business Performance
Industrial Hub
No. 1 by Land Sale with more than 30% consistent market share over the past decade
In 2015, the group of companies sold industrial estate land total of 1,043 rais or around 49% of the market share
In 2015, industrial estate land sale generated revenue approx. THB 3,930 mm1
Utilities & Power Hub
Utilities Business – Driven by the demand in raw, potable water and waste water management, which grew at 8% and 10% respectively
Power Business - The company group currently holds stakes in 6 power projects with approx. 321 operating equity MW. The company group also has signed PPA for 7 power projects with additional 220 operating equity MW
Total income3 generated from the Utilities & Power Hub is THB 2,540 mm4
Digital Hub
On process of studying and developing the project
Expect to complete the initial project and generate revenue within 2016
Remarks: 1/ Full-year performance for industrial estate business is THB 4,679 mm
2/ THB 675 mm portion of rental income is contributed from Hemaraj, but its full year performance for industrial properties is THB 869 mm
3/ This income is the combination of revenue from utilities service and share of profit from investment in power business
4/ Full-year performance for power and utilities businesses are THB 1,232 mm and THB 1,923 mm respectively
Logistics Hub
During 2015, the group of companies secured additional new contracts of approx. 223,028 sqm. which consists of: - Built-to-Suit and warehouse
farm (WHA): approx. 203,028 sqm.
- Ready-Built (Hemaraj): approx. 20,000 sqm.
Revenue contribution from rental properties in 2015 worth around THB 1,409 mm2 increased from THB 551 mm in 2014
In 2015, the company group has completed 2 asset monetization - Asset monetization to
WHART: Total net proceeds THB 3,724 mm
- Office buildings monetization to WHABT: Total net proceeds THB 2,075 mm
23
Key Business Plan 2016
Industrial Hub Utilities & Power Hub Digital Hub Logistics Hub
Balancing growth of auto and non-auto segments
Automotive – gradually reap the benefit of AEC, as the CLMV home turf for auto makers. The ripple effect is magnified by supply chain of auto parts Non-Auto – Diversification of export processing industry, Consumer Product and Petrochemical
Maintain No.1 Built-to-Suit logistics facilities developer
Enhance recurring income from the best utilization of industrial estate to serve customer requirement
Utilities • Gradually change the
product mix to potable water (replacing raw water)
• To develop natural gas distribution and local loop fiber optic
Power • SPPs development is on
plan with new SPP targeted to COD in 2016-2019 of 7 SPPs
To become one-stop service for Data Center developer
To differentiate the data center with the flexible locations in prime area and Tier-3 like technology as well as the comprehensive common facilities solution to capture wide range of customers
Continue to capitalize on the early stage of the modernized warehouse and distribution center Synergy with Hemaraj regarding the BTS factory customer base in high value sectors e.g. automotive Large scale of BTS factories are expected to finalized in strategic locations
Financial Perspective
• Pre-sale 1,100 rais
• 50-50 Auto vs Non-
Auto by number of
contract
• Pre-leased/ new
contract area 250,000
sqm
• 5%-10% growth in
utilities revenue
• 5%- 10% growth in
share of profit in power
• Realization of Revenue
within 2016
To optimize the capital structure and minimize the interest cost by way of loan refinance
1 2 3 • Year-end Gearing Ratio 1.5-
1.7x
• CAPEX approx. THB 6000mm-
6,500mm
Unlock value under Hemaraj assets at the right time • Monetization of RBF/RBW to H-REIT: THB
6,000mm (net proceed) during Q4 2016 • Listing of utility & power within Q1 2017
Free to mobilize the cash flow within the group after delisting
To issue the Bond and B/E to mainly refinance the high cost of loan and support business expansion
24
Updated Business Performance
Recap – Overall Funding Structure
Total Consideration
THB 43,258 mm /1
Equity
THB 11,367 mm
Bank Loan (WHA)/2
THB 31,891 mm
THB 8,000 mm
Remark: 1/ The amount already includes the up-front fees that are subjected to the loan arrangement.
2/ The amount of bank loan also covers all the up-front fees—arranger fee and commitment fee—under the bridging loan part with the
total amount of THB 275 mm
THB 23,891 mm
Bridging Loan (2 Yr) LT Loan (7 Yr)
25
Updated Business Performance
Completed
Net Proceed (THB mm)
Entity Net Repayment
Amount (THB mm)
Due date
1. Net Proceeds for Repayment from Hemaraj Non-core Asset 3,003 Hemaraj 2,789 Jul 2015
2. Dividend from Hemaraj’s Normal Operation (2H14 – 1Q15) 1,296 Hemaraj 1,204 Jul 2015
3. Net Proceeds for Repayment from WHA Office Buildings 2,075/1 WHA 2,075 Nov 2015
4. Net Proceeds for Repayment from WHA-W2 Exercise 3,181 WHA 3,181 Dec 2015
5. Net Proceeds for Repayment from WHA’s WH #1 3,729/1 WHA 1,206 Dec 2015
6. Additional Loan for Tender Offer to Delist Hemaraj (2,419) WHA (2,419) Mar 2016
7. Internal Cash (On-Lend Transaction) 1,000 Hemaraj 1,000 Mar 2016
8. Refinance by Other Financial Instruments/2 7,560 WHA 7,560 Jun 2016
9. Long-term Loan Recapitalization/3 13,000 Hemaraj, WHAUP 13,000 Jul 2016
Total Interest Payment (Mar’15 – Feb’16) (1,350)
Net Loan Repayment 28,246
Actual Payment of the Acquisition Loan
Remarks: 1/ This amount is net off the set up cost, transaction cost, and reinvestment. THB 1,206 mm is used to repay acquisition loan and THB 2,454 mm is used to repay normal
operating loan
2/ WHA issued 2 tranches of bonds worth THB 3.5 billion on 29 April 2016.
3/ Long-term loam recapitalization will be repaid by the IPO proceeds of Utilities & Power Spin Off of THB 5,000 mm.
The Remaining Acquisition Loan THB 3,645 mm
26
Updated Business Performance
Expected Repayment Plan for Acquisition Loan
Remaining
Acquisition Loan
THB 3,645 mm
Net proceeds monetization
as part of joint venture with
Daiwa House Industry
THB 1,500 mm (Q4’ 2016)
Remaining Acquisition Loan
THB 2,145 mm
Net proceeds monetization
from HREIT
THB 6,800 mm (Q4’ 2016)
Remaining Acquisition Loan
THB 0 mm
Remaining Cash
THB 4,655 mm
To repay the existing Corporate Loan to
avoid negative carry.
Remarks:
• Excluding the proceeds from WHA’s assets monetization to WHART.
27
Updated Business Performance
Long-term Loan
Recapitalization
THB 13,000 mm
Net proceeds from Utilities &
Power Spin Off
THB 5,000 mm (Within Q1’ 2017)
Remaining Long-term Loan
Recapitalization
THB 8,000 mm
Overall Interest-bearing debt
28
Updated Business Performance
Consolidated
Interest Bearing
Debt
14,145 14,900 19,360 20,580 13,933
14,947 14,139 14,139
16,638
16,962
- --
10,500
10,500 18,536 19,955 16,645
3,645
-
10,000
20,000
30,000
40,000
50,000
60,000
2015A 1Q 2016A 2Q 2016A 3Q 2016F 4Q 2016F
WHA HEMRAJ WHAUP Acquisition Loan
Long-term Loan Recapitalization
- HEMRAJ = THB 2,500 mm
- WHAUP = THB 10,499 mm
47,627 48,993 49,935
THB mm
HEMRAJ REIT
Proceed from
Assets
Monetization from
Joint Venture with
Daiwa House
Industry
WHART Capital
Increase #2
Projected Interest-Bearing Debt
41,993*
Remarks:
* Utilities & Power spin-off within Q1 2017
52,143
14,145 14,900 19,152 19,723 15,006
14,947 14,139 14,139
18,277 16,777
- --
10,499
10,499 18,536 19,955 16,645
3,645
-
10,000
20,000
30,000
40,000
50,000
60,000
2015A 1Q 2016A 2Q 2016A 3Q 2016A 4Q 2016F
WHA HEMRAJ WHAUP Acquisition Loan
2.99x3.42x 3.33x
2.20x2.51x 2.53x 2.63x
1.90x
0.00x
0.50x
1.00x
1.50x
2.00x
2.50x
3.00x
3.50x
4.00x
1Q 2015A 2Q 2015A 3Q 2015A 4Q 2015A 1Q 2016A 2Q 2016A 3Q 2016A 4Q 2016F
Gearing Ratio
Consolidated
Gearing Ratio
Projected Gearing Ratio
WHA Office REIT
Proceed from
Warrant Exercise
WHART Capital
Increase
Covenant 2.5x
Long-term Loan
Recapitalization
- HEMRAJ = THB 2,500 mm
- WHAUP = THB 10,499 mm
Remarks:
* Utilities & Power spin-off within Q1 2017, afterwards the expected consolidated gearing ratio will be 1.3 times
HEMRAJ REIT
Proceed from Assets
Monetization from
Joint Venture with
Daiwa House
Industry
WHART Capital
Increase #2
29
Updated Business Performance
*
Agenda
30
I. WHA Group Overview
IV. Recent Developments & Key Events
V. Q3’ 2016 Financial Performance
II. Group Business Platform and Strategy
III. Updated Business Performance
iv) Digital Business
i) Logistics & Industrial Properties Business
iii) Utilities & Power Business
ii) Industrial Estate Business
VI. Appendix – Financial Statements
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Q3 2016
294,261
Overview Logistics & Industrial Properties Business
Unit: Sqm.
88,913 141,619 141,619 169,433 192,341
298,139
505,051
1,108,740
891,286
• Built-to-Suit distribution center and warehouse in prime location to
help customers optimize long-term logistics cost
• Built-to-Suit factory with cross referral of customers from HEMRAJ
esp. those in high value sectors e.g. automotive
• Sophisticated Built-to-Suit product e.g. cold storage, multi-temp DC,
and E-Commerce DC
• Ready-Built factory and warehouse in IEs and logistic parks
• Geographical expansion e.g. Indonesia and Vietnam
• WHA Group Target for 2016 is 250,000 sqm.
Total
2,107,485
1,975,792
31
Asset Under Management
Group-Owned assets and preleased
32
Logistics Location Map
Ice
U-Tapao Airport
Bangkok Port
Laem Chabang Port
Map Ta phut Port
Bangna-Trad K.M.19
Bangna-Trad Km.18
Bangna-Trad Km.19
Lardkrabang
Chonburi
Bangna-Trad Km.20
Saraburi
Amata City
Bang pa-in
Wang-Noi K.M.61
Outer East Bangkok Zone(Bangna-Trad Rd, K.M.18-23) (Chonburi)(Lardkrabang)- Convenient access to the City Center of Bangkok,
Suvannabhumi Airport, and LaemchabangSeaport
Industrial Estate Zone(Hemaraj, Saraburi)(Amata City, Rayong)
- Tax privileges from BOI
- Comfortable access to Suvannabhumi Airportand Laemchabang Seaport
2Outer North Bangkok Zone(Bang Pa-in, Ayuthaya)(Wangnoi, Ayuthaya)
- A logistic hub to North and Northeast regionof Thailand
Remark: Portfolio as of 31 March 2016
Built-to-Suit project
Warehouse Farm project
WHAPF/WHARTPort
Airport
Bangna-Trad Km.23
3
1
Prachinburi
Bangna-Trad Km.18
Chonlaharnpichitl
Laemchabang 4
Rama II 140 rais
99 rais
11 rais
217 rais
155 rais
137 rais
79 rais
190 rais
200 rais
49 rais
30 rais
14 rais
35 rais
55 rais
69 rais
Total = 1,363 rais
Total = 211 rais
Total = 176 rais
Outer South Bangkok Zone(Samut Sakorn)- A logistic hub for cold storages
Total Land 2,144 RaisWHA Group 1,236 RaisWHAPF/WHART 908 Rais
135 rais
Up-Country(Khonkaen, Surathani, Lumpoon)
- To serve client’s business expansion
5
Total = 254 rais
Total = 140 rais
Lardkrabang35 rais
Bangna-Trad Km.2365 rais
48 raisSaraburi
Amata City13 rais
Bangna-Trad Km.76 rais
Chonburi120 rais
Lam Luk Ka 79 rais
Amata City25 rais
Bang Bua Thong 19 rais
Logistics & Industrial Properties Business
33
Logistics Properties - Performance
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Q3 2016
294,261
389,982
147,086
256,434
258,330 152,532
88,913 141,619 141,619 169,433 192,341
298,139
505,051
1,108,740
891,286
63,159 207,043
101,531
18,565
266,829
233,030
255,462
762,254 557,089
220,763
1,268,411
242,619
56,756
314,596
762,254
1,376,224
Area Completed– Area that currently generates revenue
Area Available for Lease – Area that is available to serve immediate demand
Area Pre-Leased – Area that is leased before the construction is finished
Area Sold to WHAPF/WHART/WHABT – Area that is sold to the property fund or REIT
Developed/ Developing & Occupied area for 2006-Q3’16
OR 100% 100% 100% 100% 100% 100% 100% 100% 80% 92% 85%
During Q3 2016, WHA secured pre-lease area/ new contracts for Built-to-Suit, warehouse farm and RBF/RBW totals 29,100 sqm. During 9M 2016, WHA secured pre-leased area/ new contracts for Built-to-Suit, warehouse farm and RBF/RBW totals 96,028 sqm. During 2015, WHA sold assets to WHART with total leasable area of 174,913.55 sqm. And sold office buildings to WHABT with total
leasable area of 30,251 sqm. The company has land bank for logistic properties approx. 696,855 sqm.1
Unit: Sqm.
Remarks: 1) This area is calculated from the estimated ratio of 1-rai of land = 1,000-sqm leasable area; the actual constructed area is subject to change depending on actual design to suit with clients’ requirement
Logistics & Industrial Properties Business
34
Industrial Properties - Performance
Our industrial properties performance remains of high stability despite slowdown of Thai economy and poor investment sentiment
At the end of 9M 2016, total RBF and RBW rented area under HRD is 209,360 sqm and 93,871 sqm respectively.
At the end of 9M 2016, there were 103,476 sqm under HPF.
During 9M 2016, we obtained the pre-leased/new contract area of RBF/RBW totals 21,943 sqm.
RBF Rented Area RBW Rented Area
Logistics & Industrial Properties Business
16,820
72,145
82,435
100,082 93,871
0
20,000
40,000
60,000
80,000
100,000
120,000
2012 2013 2014 2015 9M'16
Sqm
HLP under HRD Commulative Rent
159,038
235,809
175,274 192,252 193,608 209,360
122,094 109,818 105,978
103,476
159,038
235,809
297,368 302,070 299,586 312,836
0
50,000
100,000
150,000
200,000
250,000
300,000
350,000
2011 2012 2013 2014 2015 9M'16
Sqm
RBF under HRD Commulative Rent Under HPF Rent
Well-Known Tenant Profile
35
Logistics & Industrial Properties Business
Well-Known Tenant Profile
WHA
WHAPF
WHART
WHA
16%
20%
26%
29%
9%
Asia
Europe
Japan
Thai
America
44%
26%
23%
7%
FMCG*&Healthcare
3PL**
Manufacturing
Other
37%
26%
22%
15% FMCG*&Healthcare
3PL**
Manufacturing
Other
12%
26%
50%
12%
Asia
Japan
Thai
America
36
Logistics & Industrial Properties Business
Remarks:
Information as of Q3’2016
Agenda
37
I. WHA Group Overview
IV. Recent Developments & Key Events
V. Q3’ 2016 Financial Performance
II. Group Business Platform and Strategy
III. Updated Business Performance
iv) Digital Business
i) Logistics & Industrial Properties Business
iii) Utilities & Power Business
ii) Industrial Estate Business
VI. Appendix – Financial Statements
38
Industrial Estate Business
Industrial Estate Business - Performance
No. 1 by Land Sale with more than 32% market share over the past decade
Year Market (rai) Hemaraj (rai) % Market
1H16 629 351 56% 2015 2,121 1,043 49%
2014 1,576 665 42%
2013 4,746 2,200 46%
2012 10,872 2,317 21%
2011 5,457 1,670 31%
2010 3,622 930 26%
2009 901 144 16%
2008 4,170 1,621 39%
Total 34,094 10,941 32%
32% Market
Share with
over 10,000 rai
of Total Land
Sales from year
2008 until now
Source: CBRE Bangkok property report as of 2Q’16
2,200
665
1,043
156 302
511 653
0
500
1,000
1,500
2,000
2,500
2013 2014 2015 3Q'15 3Q'16 9M'15 9M'16
Our Land Sales Record and Market Share
Unit: rai
39
Industrial Estate Business – Customer Profile
Customer Profile by Country Customer Profile by Industry
The total number of customers through 3Q’ 2016 consists of 683 customers with total 1,029 Contracts
Industrial Estate Business
Auto 34%
Consumer 14%
Petrochemical 9%
Steel/Metal 9%
Electronics 8%
Building Material
7%
Logistics 5%
Others 14%
Japan 38%
Thailand 19%
Europe 11%
USA 9%
Australia 5%
Taiwan 3%
India 2%
China 3%
Korea 2%
Other Asia, 7%
40
Industrial Estate Business – Customer Profile Industrial Estate Business
11
19 23 25
9 9
1
5
5 3
0 0
0
8
11
4
2 3
2
1
3
7
3
5 1
1
4
6
6
1 1
4
2
5
15
13
8 7
3
3
5
8
4
4
1
2
5
2
2
2
19
49
80
60
31
22
15
0
10
20
30
40
50
60
70
80
90
2010 2011 2012 2013 2014 2015 9M'16
Number of New Customers by Industry
Auto Building Material
Consumer Electronics
Logistics Others
26 29 33 42
13 10 4
6 5
6
3
9 14
6
3 6
4
2
11 5
6 2
2
1
18 14
2
4
2
11
20
15
10
8 4
5
9
9
8
5
1
3
2
5
3
1 5
41
74
115
101
42
28 26
0
20
40
60
80
100
120
140
2010 2011 2012 2013 2014 2015 9M'16
Number of Contract by Industry
Auto Building MaterialConsumer ElectronicsLogistics OthersSteel/Metal Chemical/Petrochem
Consumer Petrochemical Steel/Metal
41
Well-Known Customer Profile Industrial Estate Business
Automotive
42
Investment in Vietnam – Why Vietnam? Industrial Estate Business
43
Investment in Vietnam – Why Vietnam? (Cont’d) Industrial Estate Business
44
Investment in Vietnam – Why Vietnam? (Cont’d) Industrial Estate Business
Rank Country Score Trend
1 China 100.0
2 USA 99.5
3 Germany 93.9
4 Japan 80.4
5 South Korea 76.7
6 United Kingdom 75.8
7 Taiwan 72.9
8 Mexico 69.5
9 Canada 68.7
10 Singapore 68.4
11 India 67.2
12 Switzerland 63.6
13 Sweden 62.1
14 Thailand 60.4
15 Poland 59.1
16 Turkey 59.0
17 Malaysia 59.0
18 Vietnam 56.5
19 Indonesia 55.8
20 Netherlands 55.7
Rank Country Score
1 USA 100.0
2 China 93.5
3 Germany 90.8
4 Japan 78.0
5 India 77.5
6 South Korea 77.0
7 Mexico 75.9
8 United Kingdom 73.8
9 Taiwan 72.1
10 Canada 68.1
11 Singapore 67.6
12 Vietnam 65.5
13 Malaysia 62.1
14 Thailand 62.0
15 Indonesia 61.9
16 Poland 61.9
17 Turkey 60.8
18 Sweden 59.7
19 Switzerland 59.1
20 Czech Republic 57.4
In 2016…
Vietnam to overtake
Thailand in the next 5 years
in the next 5 years…
Source: Deloitte
Transcending Manufacturing Competitiveness 2
“Manufacturing Competitiveness Index reflecting potential improvements in cost competitiveness, workforce productivity and infrastructures“
45
Investment in Vietnam – Why Vietnam? (Cont’d) Industrial Estate Business
46
Investment in Vietnam – Why Vietnam? (Cont’d) Industrial Estate Business
Strategic Location 4
Japan China
Hong Kong Taiwan
South Korea
Indonesia
Brunei
Malaysia
Singapore
Vietnam
Cambodia
Laos
Myanmar
North Korea
Thailand
Gateway to Major Markets Well-Developed Transportation Infrastructure
Proximity to China, South Korea and
Japan
Rail: 2,600 km
• Mostly single track
Air: 22 airports
• 10 International, 12 Domestic
Road: 195,468 km
• Paved –148,338 km
• Unpaved – 47,130 km
Sea: 69 seaports
• Major Ports: Saigon Port and Hai Phong Port
Source: CIA World Factbook, Wikipedia, World Bank, ICAO, VPA
47
Investment in Vietnam – Why Vietnam? (Cont’d) Industrial Estate Business
48
Investment in Vietnam – Nghe An Project Overview Industrial Estate Business
49
Investment in Vietnam – Nghe An Project Overview (Cont’d) Industrial Estate Business
Approx. area: 2,040 ha
Approx. area: 1,160 ha
50
Investment in Vietnam – Nghe An Project Overview (Cont’d) Industrial Estate Business
Approx. area: 2,040 ha
Approx. area: 1,160 ha
Agenda
51
I. WHA Group Overview
IV. Recent Developments & Key Events
V. Q3’ 2016 Financial Performance
II. Group Business Platform and Strategy
III. Updated Business Performance
iv) Digital Business
i) Logistics & Industrial Properties Business
iii) Utilities & Power Business
ii) Industrial Estate Business
VI. Appendix – Financial Statements
Utilities & Power Business
Utilities Performance
A slight decrease in utility demand due to lower raw water consumption mainly as a result
of Glow IPP Plant shut down
Unit: Million cubic meter
52
24.8 23.4 22.0 21.2 18.7 14.9 12.4
28.4 34.6 38.5
41.4 42.8
32.4 33.8
23.8
28.4 29.5 31.3 32.4
24.8 23.8
53.3
58.0 60.5
62.6 61.6
47.3 46.2
2011 2012 2013 2014 2015 9M'15 9M'16
Raw Water Potable & Clarified Water Waste Water
Utilities & Power Business
Power Performance
53
Project Type Fuel Location Owner
ship Total MW
Equity
MW
COD
(Yr)
Operating Phase
Glow IPP IPP Gas Co-gen HCIE 5.00% 713 35.7 2003
Houay Ho IPP Hydro Laos 12.75% 152 19.4 1999
Gheco-One IPP Coal Map Ta Phut
IE 35.00% 660 231.0 2012
GJP NLL SPP Gas Co-gen HRIL 25.01% 122.5 30.6 2013
Gulf Solar VSPP Rooftop Solar HLP1, HCIE,
HESIE, ESIE 25.01% 0.6 0.1 2014
WHA Gunkul VSPP Rooftop Solar Bangna-trad,
Wongnoi 75.00% 3.3 2.5 2014
Operating Phase total 19.34% 1,651.4 319.3
We continue expanding our quality portfolio of power investment, with 543 MW of equity
capacity in operation by 2019
Current Portfolio Committed Portfolio
Project Type Fuel Location Owner
ship
Total
MW
Equity
MW
COD
(Yr)
Construction Phase
Bowin Clean
Energy w/B
Grimm
SPP Gas Co-gen HCIE 25.01% 135 33.8 Nov-16
GVTP w/Gulf MP SPP Gas Co-gen ESIE 25.01% 130 32.5 May-17
GTS1 w/Gulf MP SPP Gas Co-gen ESIE 25.01% 130 32.5 Jul-17
GTS2 w/Gulf MP SPP Gas Co-gen ESIE 25.01% 130 32.5 Sep-17
GTS3 w/Gulf MP SPP Gas Co-gen HESIE 25.01% 125 31.3 Nov-17
GTS4 w/Gulf MP SPP Gas Co-gen HESIE 25.01% 125 31.3 Jan-18
Construction Phase total 25.01% 775 193.8
Pre-Investment Phase
GNLL2 w/Gulf MP SPP Gas Co-gen HRIL 25.01% 120 30.0 Jan-19
Pre-Investment Phase Total 25.01% 120 30.0
319 Operating Equity MW in 2015 543 Operating Equity MW in 2019
Agenda
I. WHA Group Overview
IV. Recent Developments & Key Events
V. Q3’ 2016 Financial Performance
II. Group Business Platform and Strategy
III. Updated Business Performance
iv) Digital Business
i) Logistics & Industrial Properties Business
iii) Utilities & Power Business
ii) Industrial Estate Business
VI. Appendix – Financial Statements
54
Recent Development and Location Digital Business
55
Data Center
Upper
Tier
Lower
Tier
Number of Data
Centers
3 1
Location Zone Vibhavadi-Rangsit
Bangna-Trad
Eastern Seaboard
(Rayong)
Bangna-Trad
Shareholdering
Structure
Owned 100% by
WHA
Joint Ventures
Local Loop
Implementing Local Loop as a Managed Service inside
our Industrial Estates
Establishing 3 Data Center Zones
Recent Development
Agenda
I. WHA Group Overview
IV. Recent Developments & Key Events
V. Q3’ 2016 Financial Performance
II. Group Business Platform and Strategy
III. Updated Business Performance
iv) Digital Business
i) Logistics & Industrial Properties Business
iii) Utilities & Power Business
ii) Industrial Estate Business
VI. Appendix – Financial Statements
56
Recent Developments & Key Events
Recent Developments/Key Events
3
2 Projects to be injected in WHART with the total leasable
area of 159,141 sqm.
Sale value: approx. THB 4,190 mm
WHART’s max fund raised: THB 4,467.9 mm
Filling effective: Nov 1, 2016
RO Notification Period: Nov 22 - 28, 2016
PO Subscription Period: Nov 29 - Dec 1, 2016
Asset Transfer: Dec 2016
Approval of Bond Issuance of THB 7,000 mm in
2016 from AGM 1/2016 on Apr 25, 2016
In 3Q2016, WHA completed total bond issuance of
THB 1,800 mm
28 Jul 2016 – THB 300 mm (3 yrs 2 days, 3.75%)
16 Sep 2016 – THB 1,500 mm (3 yrs, 4.00%)
By the end of 3Q2016, WHA has issued bond totaling
THB 6,260 mm
4
New Bond Issuance
Upcoming
Asset
Monetization
to WHART
5
Upcoming
Asset
Monetization
to HREIT
WHAUP IPO
JV agreement signed on July 26, 2016
2 Seeding Projects (Laemchabang and Bang-na Trad)
to be sold JV Co. with total amount of approx. THB
2,351.5 million
Shareholder Structure: 51% held by WHA and 49%
held by Daiwa
Expected asset transfer: within end of Nov
Filling effective: Oct 31, 2016
Hemaraj’s asset approx. 261,314 sq.m. to be monetized to
HREIT
HREIT’s estimated fund raised: approx. THB 8,019 mm
Subscription (WHART Unitholders): Nov 9 – 11 & 14
Subscription (remaining portion): Nov 15 - 18
Asset Transfer: Nov 2016
57
Joint Venture with DAIWA
Filing submission: Sept 6, 2016
Offering: 30% of total shares (post IPO)
1
2
Recent Developments/Key Events (Cont’d)
NEW BOND ISSUANCE 1
17 Mar 2016
THB 200 mm
3 yrs 3.70%
29 Apr 2016
THB 3,500 mm
3 yrs 3.85%
PO + PP
4 yrs 4.10%
19 May 2016
THB 150 mm
3 yrs 3.75%
9 Jun 2016
THB 230 mm
3 yrs 3.85%
21 Jun 2016
THB 280 mm
3 yrs 3.85%
28 Jul 2016
THB 300 mm
3 yrs 3.75%
16 Jun 2016
THB 100 mm
3 yrs 3.85%
Type THB, unsecured and unsubordinated debentures Placement PO = THB 2,500 mm
PP to institutional and/or high-net-worth investors = THB 1,000 mm
58
Recent Developments & Key Events
16 Sep 2016
THB 1,500 mm
3 yrs 4.00%
Recent Developments/Key Events (Cont’d)
Location Asset Type and Approx. NLA
Eastern Seaboard Industrial Estate (Rayong) (ESIE) Hemaraj Eastern Seaboard Industrial Estate (HESIE) Hemaraj Chonburi Industrial Estate (HCIE) Hemaraj Logistics Park 1 Hemaraj Logistics Park 2 Hemaraj Logistics Park 4
Asset Type and NLA Factory 167,372 sq.m. Warehouse 93,942 sq.m. Total Leasable Area 261,314 sq.m.
• Total net leasable area to monetize is approx. 261,314 sq.m.
• HREIT’s expected fund raised: approx. THB 8,019 mm
UPCOMING ASSET MONETIZATION TO HREIT 2
59
Recent Developments & Key Events
31 Oct Filing Effective Date
9 – 11 & 14 Nov
Subscription: WHART Unitholders (Pre-emptive Right)
15 - 18 Nov Subscription: Hemaraj and/or its affiliates, sponsor’s patronage, institutional investors, underwriter’s patronage, selling agent’s patronage
Recent Developments/Key Events (Cont’d)
Asset Building (sqm)
Rooftop (sqm)
Snapshot
WHA Mega Logistics Center Lardkrabang Lardkrabang, Bangkok
95,110.00 59,986.30
WHA Mega Logistics Center Chonlaharnpichit km 5
Chonlaharnpichit Rd, Samutprakarn
64,031.00 50,143.60
Total 159,141.00 110,129.90
• Total sale value to WHART of approx. THB 4,190 mm
• WHART’s max fund raised: THB 4,467.9 mm
UPCOMING ASSET MONETIZATION TO WHART 3
60
Recent Developments & Key Events
• WHART Unitholders Approval on June 2, 2016
• Filing submission to SEC on June 27, 2016
• Filling effective: Nov 1, 2016
• RO Notification Period: Nov 22 - 28, 2016
• PO Subscription Period: Nov 29 - Dec 1, 2016
• Asset Transfer: Dec 2016
Recent Developments/Key Events (Cont’d)
JOINT VENTURE WITH DAIWA HOUSE INDUSTRY 4
Asset Approx. NLA Snapshot
WHA Mega Logistics Center Cholaharnpichit KM3 PH II
74,000 sqm
WHA Mega Logistics Center Laemchabang
45,000 sqm
• JV agreement signed on July 26, 2016
• WHA will sell 2 Seed Projects (Laemchabang and Bang-Trad area) amounting to THB 2,351.5 mm to JV
• WHA will hold 51% and Daiwa House Industry will hold 49% in JV Co.
61
Recent Developments & Key Events
WHA Group
Agenda
I. WHA Group Overview
IV. Recent Developments & Key Events
V. Q3’ 2016 Financial Performance
II. Group Business Platform and Strategy
III. Updated Business Performance
iv) Digital Business
i) Logistics & Industrial Properties Business
iii) Utilities & Power Business
ii) Industrial Estate Business
VI. Appendix – Financial Statements
62
Q3’ 2016 Financial Performance
Long-Term Outlook
63 Unit: THB
12,475 mm
2015A 2020F
Revenue and Share of Profits
Revenue by Geography
Target 5% of revenue from international business by 2020
95%
5%
Thailand International
2020F
100%
2015A
Revenue by Hub
Equal contribution from 4 business hubs going forward
23%
41%
18%
18%
Logistics Industrial Estates Utilities and Power Digital
2020F 47%
31%
22%
2015A 51% 49%
Sale Recurring
74%
26%
Sales vs. Recurring Income
Target Recurring Revenue 9,500 mm
2020F 2015A
21,000 mm Unit: THB
CAGR 11.5%
Better earning visibility
Strengthen business platform
Well-diversified sources of revenue
7,169
5,058
12,064
1,161 1,408
3,254 4,175
1,895 1,497
4,538
676 721
1,934 2,435
1,463 979
1,954
(53)
43 169 497
(1,000)
1,000
3,000
5,000
7,000
9,000
11,000
13,000
13 1 1 3Q2015 3Q2016 9M2015 9M2016
Total revenue EBIT Net income
Overall Performance
64
Q3’ 2016 Financial Performance
3Q2016 & 9M2016 PERFORMANCE
Unit: THB mm
Total revenue increased 21% from 3Q2015 to THB 1,408 mm in 3Q2016. EBIT stood at THB 721 mm, slightly increased by 7% from 3Q2015. Net income of THB 43 mm for 3Q2016 changed significantly from a loss in 3Q2015, reflecting normal business operation of the company. The
loss incurred in 3Q2015 resulted mainly from a decrease in the contribution from share of profit from power business to HEMRAJ. This was due to the depreciation of Baht, resulting in the foreign exchange loss.
Total revenue for 9M2016 increased 28% to THB 4,175 mm from growth of rental and service revenue as well as sale of Built-to-Own warehouse project in 2Q2016 of THB 355 mm.
Net income for 9M2016 totaled THB 497 mm, increased by 194% due to consolidation of HEMRAJ’s performance to WHA for only 15 days in 1Q2015, foreign exchange loss in 3Q2015, and decrease in tax expenses in 9M2016.
- -
1,561
482 527
1,132 1,454
-
-
1,561
482 527
1,132 1,454
41% 44%44% 48%
39%
0% -
200
400
600
800
1,000
1,200
1,400
1,600
1,800
13 1 1 3 Q 2 0 1 5 3 Q 2 0 1 6 9 M 2 0 1 5 9 M 2 0 1 6
WHA HEMRAJ Margin
500 551 735
186 237 529 597
675
202 219
470 650
500 551
1,409
388 456
999
1,246
64% 60%69% 80% 68%
71%
68%
-80%
120%
320%
520%
720%
-
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2,000
13 1 1 3 Q 2 0 1 5 3 Q 2 0 1 6 9 M 2 0 1 5 9 M 2 0 1 6
WHA HEMRAJ Margin
82
160 239
38 45 155 130
447
75 73
280 234
82
160
686
113 118
435 364
-
100
200
300
400
500
600
700
13 1 1 3 Q 2 0 1 5 3 Q 2 0 1 6 9 M 2 0 1 5 9 M 2 0 1 6
WHA HEMRAJ
2 6 2 - 5 3
974
155 211
605
1,129
2
979
156 211
610
1,132
-
200
400
600
800
1,000
1,200
13 1 1 3 Q 2 0 1 5 3 Q 2 0 1 6 9 M 2 0 1 5 9 M 2 0 1 6
WHA HEMRAJ
6,585
4,337 4,502
- - 17 355
3,964
198 317 714 785
6,585
4,337
8,466
198 317 731 1,139
25%
30%
28% 39% 42%33% 30%
-100%
100%
(800)
200
1,200
2,200
3,200
4,200
5,200
6,200
7,200
8,200
9,200
13 1 1 3 Q 2 0 1 5 3 Q 2 0 1 6 9 M 2 0 1 5 9 M 2 0 1 6
WHA HEMRAJ Margin
Profitability by Business
65
RENTAL PROPERTY BUSINESS
UTILITIES BUSINESS POWER BUSINESS OTHER REVENUES
SALE OF PROPERTIES BUSINESS
Consist of share of profit from power business Consist of property and REIT management fee, dividend income, share of
profit from property fund, and other income
Unit: THB mm
Gross profit margin on consolidated FS is different from that on HEMRAJ stand-alone FS due to the effect of PPA adjustment after acquisition
HEMRAJ’s GPM before PPA: 90% (3m), 90% (9m) HEMRAJ’s GPM before PPA: 54% (3m), 45% (9m)
Q3’ 2016 Financial Performance
HEMRAJ’s GPM before PPA: 40% (3m), 47% (9m)
Rental property310 31%
Sale of Industrial Estates
134 13%
Utilities234 23%
Power211 21%
Others118 12%
Rental property456 28%
Sale of Industrial Estates
317 20%
Utilities527 32%
Power211 13%
Others118 7%
Revenue and Gross Profit Breakdown
66
3Q2016 GROSS PROFIT BREAKDOWN (3 mths)
3Q2016 REVENUE BREAKDOWN (3 mths)
Unit: THB mm Unit: THB mm
TOTAL
THB 1,628 mm
TOTAL
THB 1,007 mm
Remark: Includes share of profit from JV’s and Associates Remark: Includes share of profit from JV’s and Associates
Gross profits are based on consolidated financial statements, thus they are
affected by PPA adjustment
Recurring vs Non-Recurring = 81:19 Recurring vs Non-Recurring = 87:13
Q3’ 2016 Financial Performance
Rental property848 26%
Sale of Industrial Estates
271 8%
Sale of IP's76 2%
Utilities571 18%
Power1,132 35%
Others364 11%
Rental property1,246 23%
Sale of Industrial Estates785 15%
Sale of IP's355 7%
Utilities1,454 27%
Power1,132 21%Others
364 7%
Revenue and Gross Profit Breakdown
67
9M2016 GROSS PROFIT BREAKDOWN (9 mths) 9M2016 REVENUE BREAKDOWN (9 mths)
Unit: THB mm Unit: THB mm
TOTAL
THB 5,336 mm
TOTAL
THB 3,263 mm
Remark: Includes share of profit from JV’s and Associates Remark: Includes share of profit from JV’s and Associates
Gross profits are based on consolidated financial statements, thus they are
affected by PPA adjustment
Recurring vs Non-Recurring = 79:21 Recurring vs Non-Recurring = 89:11
Q3’ 2016 Financial Performance
983 2,186 4,070 2,756 - -
15,425 15,413
2,225 3,305
3,987 7,238
--
9,352 10,153
6,167
7,959
14,639 12,347
-
-
21,520 21,748
1,673
2,502
10,102 10,865
11,049
15,952
79,095 80,519
44%
396%
0%
50%
100%
150%
200%
250%
300%
350%
400%
450%
0
10000
20000
30000
40000
50000
60000
70000
80000
13 1 1 3 Q 2 0 1 6
Cash & ST investmentsCost of real estate developmentsNon-current assets held for saleInvestment in associatesInvestment propertiesIntangible assets & goodwillOthers
Balance Sheet
68
Unit: THB mm
CAPITAL STRUCTURE ASSETS
Unit: THB mm
RETURN ON INVESTMENT
Remark: ROIC = NOPAT ÷ Average Invested Capital (IBD and Equity)
IP’s stood at THB 12,347 mm at the end of 3Q2016.
Intangible assets & goodwill of THB 21,748 mm resulted from the PPA after
the acquisition.
Hemaraj contributed Cost of Real Estate Developments of THB 15,413 mm
and Investment in Associates of THB 10,153 mm to the consolidated balance
sheet in 3Q2016.
A drop in return on investment is due to a significant increase in asset and equity base after acquisition of
Hemaraj and a change in the nature of business
Q3’ 2016 Financial Performance
6,895
11,472
57,436
60,687
4,154 4,480 21,659 19,833
1.66
2.56 2.65 3.06
1.25
2.34 2.20
2.63
1.01
1.86 2.01
2.49
-
1
2
3
4
0%
20%
40%
60%
80%
100%
2013 2014 2015 3 Q 2 0 1 6
Liabilities Equity D/E IBD/E Net IBD/E
41.6%
22.7%
16.9%11.9%
15.1%
7.2%
4.1% 2.9%
20.0%
10.5%10.6%
7.1%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
2013 2014 2015 3 Q 2 0 1 6
ROE ROA ROIC
2.64%B/E & P/N
1,650
4.00%Term Loan
500
5.65%Bond13,938
Acquisition Loan
12,999
2.49%B/E & P/N
4,185
4.77%Term Loan
1,964
4.85%Bond28,968
4.49%Acquisition Loan
16,645
2.40%B/E
2,535
5.03%Term Loan
1,464
4.11%Bond15,030
5.53%Acquisition Loan
3,646
Debt Profile
69
END OF 2Q2016
Unit: THB mm
END OF 3Q2016
Unit: THB mm
Weighted Average Interest Rate
4.54%
WHA HEMRAJ
Weighted Average Interest Rate
4.21%
Weighted Average Interest Rate
4.80%
Q3’ 2016 Financial Performance
2.70%B/E350
5.15%Term Loan
160
5.65%Bond13,938
2.49%B/E
2,000
4.71%Term Loan
1,494
4.14%Bond14,860
5.53%Acquisition Loan
16,646
2.52%B/E
2,350
4.75%Term Loan
1,654
4.88%Bond28,798
5.53%Acquisition Loan
16,646
Weighted Average Interest Rate
4.98%
WHA HEMRAJ
Weighted Average Interest Rate
4.73%
Weighted Average Interest Rate
5.58%
Debt Maturity & Finance Cost
Unit: THB mm As of 30 Sep 2016
DEBT MATURITY PROFILE
Unit: THB mm
FINANCE COST
70
Q3’ 2016 Financial Performance
183 295
2,284
651 628
295
1,823
547 477
295
1,292
426 123 -
500
1,000
1,500
2,000
2,500
13 1 1 3 Q 2 0 1 5 3 Q 2 0 1 6
Consolidated WHA's Acquisition loan
-
3,535 3,060 3,555
2,500 2,100
- - 280 1,186
40
40 48
41 24
28 28
29
1,500
2,300
-638
-
2,000
1,000
2,500 2,500
500
-
-
2,000
1,500
1,500
1,500
1,499
3,646
5,000
6,832
10,875
5,100 5,741
4,041
5,624
2,527 2,528 2,809
4Q2016F 2017F 2018F 2019F 2020F 2021F 2022F 2023F 2024F
WHA : Bond WHA : Term Loan HEMRAJ : Bond HEMRAJ : Term Loan WHAUP: Term Loan Acquisition Loan
Under HEMRAJ and WHAUP
WHA Group
Agenda
I. WHA Group Overview
IV. Recent Developments & Key Events
VI. Appendix – Financial Statements
V. Q3’ 2016 Financial Performance
II. Group Business Platform and Strategy
III. Updated Business Performance
iv) Digital Business
i) Logistics & Industrial Properties Business
iii) Utilities & Power Business
ii) Industrial Estate Business
Income Statement
Consolidated Income Statement
(Unit: THB, mm) 2013 2014 2015 3Q2015 2Q2016 3Q2016 %YoY %QoQ 9M2015 9M2016 %YoY
Revenue
Rental, service, and utilities income 500.5 551.1 2,970.7 869.2 908.7 983.0 13.1% 8.2% 2,130.8 2,700.5 26.7%
Income from sales of real estate 6,585.0 4,336.8 8,466.3 197.6 460.6 317.2 60.5% (31.1%) 731.1 1,139.3
55.8%
Other income 83.5 169.8 627.1 94.1 123.5 107.9 14.6% (12.7%) 392.5 335.0
(14.7%)
Total revenues 7,169.0 5,057.7 12,064.1 1,161.0 1,492.8 1,408.0 21.3% (5.7%) 3,254.4 4,174.7 28.3%
Share of profit (loss) from JVs & associates (1.3) (7.7) 1,038.0 174.7 491.3 220.5 26.2% (55.1%) 652.5 1,161.3 78.0%
Expenses
Cost of rental and service 179.0 219.0 1,356.9 345.5 429.5 438.1 26.8% 2.0% 878.1 1,281.1
45.9%
Cost of real estate 4,961.8 3,050.1 6,073.7 120.3 344.1 183.6 52.7% (46.6%) 492.8 792.1
60.7%
Selling expense - - 230.5 28.3 26.5 40.2 42.1% 51.8% 69.3 107.4
55.1%
Administrative expenses 131.8 283.3 902.8 165.4 235.3 245.5 48.4% 4.4% 532.7 720.3
35.2%
Total costs 5,272.5 3,552.5 8,563.9 659.5 1,035.5 907.5 37.6% (12.4%) 1,972.9 2,901.0 47.0%
EBIT 1,895.2 1,497.5 4,538.2 676.2 948.6 721.0 6.6% (24.0%) 1,934.1 2,435.0 25.9%
Finance costs 182.9 294.8 2,284.3 650.8 616.9 628.2 (3.5%) 1.8% 1,585.6 1,855.6 17.0%
EBT 1,712.3 1,202.7 2,253.9 25.3 331.7 92.8 266.3% (72.0%) 348.5 579.4 66.3%
Income tax 248.9 224.1 87.0 35.2 (17.3) 12.3 (65.1%) (170.7%) 54.6 (13.1) (124.0%)
Net income 1,463.5 978.6 2,166.9 (9.8) 349.1 80.6 (918.0%) (76.9%) 293.9 592.5 101.6%
Attributable to owners of the parent 1,463.5 978.6 1,953.7 (52.7) 334.5 42.6 (180.7%) (87.3%) 168.8 497.0 194.4%
Attributable to non-controlling interest - - 213.2 42.9 14.6 38.0 (11.4%) 160.4% 125.1 95.6 (23.6%)
72
Appendix – Financial Statements
Balance Sheet
Consolidated Balance Sheet
(Unit: THB, mm) 2013 2014 2015 2Q2016 3Q2016 Increase (Decrease) Current assets
Cash and cash equivalents 319.8 370.9 2,554.7 1,489.3 2,557.3 1,068.0 71.7%
ST investment 663.5 1,815.0 1,515.2 457.5 198.4 (259.1) (56.6%)
Non-current assets held-for-sale 2,225.1 3,305.0 3,986.7 6,817.5 7,237.7 420.2 6.2%
Cost of real estate developments (net) - - 15,425.3 15,488.0 15,413.2 (74.8) (0.5%)
Other current assets 123.4 191.2 2,750.7 2,479.1 2,358.7 (120.4) (4.9%)
Total current assets 3,331.8 5,682.2 26,232.6 26,731.4 27,765 1,034 3.9%
Non-current assets
Investment in available-for-sale 1,387.5 1,851.3 2,286.3 2,890.4 2,858.0 (32.4) (1.1%)
Investment in associates - - 9,352.2 9,420.1 10,153.2 733.1 7.8%
Investment properties (net) 6,167.2 7,958.6 14,638.6 12,957.2 12,346.7 (610.5) (4.7%)
Leasehold rights (net) 64.0 52.9 51.0 45.0 43.6 (1.4) (3.1%)
Property, plant, and equipment (net) 43.4 66.8 3,842.1 3,857.9 3,850.9 (7.0) (0.2%)
Intangible assets (net) - - 4,184.8 4,172.8 4,172.8 - -
Goodwills - - 17,335.6 17,575.0 17,575.0 (0.0) (0.0%)
Other non-current assets 55.0 340.1 1,171.8 1,251.8 1,753.7 501.9 40.1%
Total non-current assets 7,717.0 10,269.9 52,862.5 52,170.3 52,753.9 583.6 1.1%
Total assets 11,048.9 15,952.0 79,095.1 78,901.8 80,519.1 1,617.4 2.0%
Liabilities
Bank overdrafts and ST borrowings 198.7 250.0 1,693.2 2,339.2 6,654.6 4,315.4 184.5%
Trade and other payables 1,123.1 597.4 3,381.1 2,798.8 2,046.0 (752.8) (26.9%)
Current portion of LT borrowings – FN
institutions 87.0 391.2 11,714.1 15,413.2 4,990.7 (10,422.5) (67.6%)
Current portion of LT borrowings – Debenture - - 3,175.0 4,372.0 6,884.3 2,512.4 57.5%
Other current liabilities 1,120.9 1,692.4 938.7 2,222.3 2,349.4 127.1 5.7%
LT borrowings – FN institutions (net) 1,501.9 1,175.7 9,227.9 1,614.4 9,825.7 8,211.2 508.6%
Debenture (net) 2,695.3 7,190.8 21,777.2 24,956.1 22,571.2 (2,384.9) (9.6%)
Other non-current liabilities 168.1 174.4 5,529.2 5,415.0 5,364.6 (50.4) (0.9%)
Total liabilities 6,895.1 11,472.0 57,436.4 59,131.0 60,686.6 1,555.6 2.6%
Equity attributable to owners of the parent 4,153.8 4,480.0 18,655.8 19,132.6 19,156.4 23.7 0.1%
Non-controlling interest - - 3,003.0 638.2 676.2 38.0 6.0%
Total shareholders’ equity 4,153.8 4,480.0 21,658.7 19,770.8 19,832.5 61.7 0.3%
Total liabilities and Shareholders’ equity 11,048.9 15,952.0 79,095.1 78,901.8 80,519.1 1,617.4 2.0%
73
Appendix – Financial Statements
Board of Directors WHA Group
Director Director and Management Ms. Jareeporn Jarukornsakul
Vice Chairman of Board of Directors
Vice Chairman of Executive Committee
Group Chief Executive Officer
Dr. Somyos Anantaprayoon
Chairman of Board of Directors
Chairman of Executive Committee
Dr. Pichit Akrathit
Independent Director
Chairman of the Audit
Committee
Dr. Somsak
Pratomsrimek
Independent Director
Member of the Audit
Committee
Dr. Apichai
Boontherawara
Independent Director
Member of the Audit
Committee
Dr. Kritsana
Sukboonyasatit
Independent Director
Member of the Audit
Committee
Independent Director /1
Mr. Narong Kritchanchai
Director
Member of Executive Committee
Chief Legal Officer
Mr. David Richard Nardone
Vice Chairman of Board of Directors
Member of Executive Committee
Chief Executive Officer – Industrial Business
Mr. Arttavit Chalermsaphayakorn
Director
Member of Executive Committee
Chief Financial Officer
Mr. Vivat Jiratikarnsakul
Director
Member of Executive Committee
Chief Operating Officer-Industrial business
Mr. Krailuck Asawachatroj
Director
Member of Executive Committee
Chief Strategic Officer
Mr. Jakrit Chaisanit
Director
Member of Executive Committee
Chief Operating Officer-Logistics business
Director of CM
74
Mr. Somsak Boonchoyreungchai
Director
Member of Executive Committee
Director of Accounting Department
Mr. Chanvit
Amatamatucharti
Independent Director
Remarks:/1 Information as of November 11, 2016
75
76
77
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