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WHA Corporation PCL Opportunity Day Q3’2017 Result
“Your Ultimate Solution Partner”
1
As of Nov 2017
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
As of Nov 2017
Agenda
IV. Recent Developments & Key Events
II. Summary of Business Performance
III. Financial Performance
iii) Utilities & Power Business
i) Industrial Estate Business
Appendix
ii) Logistics & Industrial Properties Business
3
V. Company Outlook
I. WHA Group Overview
As of Nov 2017
WHA GROUP AT-A-GLANCE WHA Group Overview
/1 as of Nov 9, 2017
WHA is a SET-100 listed company with a market capital of USD 1,652/1 mm, and under MSCI small-cap index
4
2.1 mm m2 under owned & managed
200 well-known tenants profile
30% 3PL
30% Japanese
#1 Logistics
9 + 3 industrial estates
711 well-known customers profile
34% Auto
38% Japanese
#1
10,000 rais available for sale
46,434 rais total IEs
Industrial Development
96 mm m3 in Y’16A
350 equity MW in Y’16A
102 mm m3 in Y’17E
478 equity MW in Y’17E
#1 Utilities & Power
3 data centers with 450 racks
3 FTTx Services
new Digital Platform
Utilities
Power
As of Nov 2017 5
Location Map
WHA Group Overview
As of Nov 2017
Group Structure – Operating Companies WHA Group Overview
WHA KPN Alliance
Central WHA Alliance
WHAPF
NAV per unit –THB 10.34/1
Paid-Up Capital–THB 9,390.6 mm
WHART
NAV per unit –THB 9.80/1
Paid-Up Capital–THB 9,027.4 mm/2
WHABT
NAV per unit –THB 10.07/1
Paid-Up Capital–THB 1,966.7 mm/5
15.00% 15.00%
15.00%
Remarks: /1 NAV per unit as of Nov 9, 2017 /2 Including the 11th capital reduction /3 Held by Hemaraj Land and Development PCL. /4 Information as of Nov 9, 2017
WHA Daiwa Logistics Property
WHA Infonite
Registered – THB 185 mm Paid-up – THB 185 mm/4
Hemaraj Land and Development PCL.
Registered – THB 6,000 mm
paid-up Cap – THB 3,882 mm
98.54%
94.75%
Core Business
WHA Corporation PCL
Registered – THB 1,567.8 mm paid-up Cap – THB 1,432.2 mm
WHAUP/3
Registered – THB 3,825 mm paid-up Cap – THB 3,825 mm
70.00%/4
Property Funds and REITs
HPF/3
NAV per unit –THB 9.911
Paid-Up Capital–THB 4,629.5 mm/7
22.95%
HREIT/3
NAV per unit – THB 8.69/1
Paid-Up Capital–THB 5,479.2 mm/6
15.00%
JV Collaborations
Gheco-One
Glow IPP
Houy Ho Power
GJP NLL
Gulf Solar
WHA Gunkul
Bowin Clean Energy
JV Collaborations – Utilities & Power/3
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%
WHA Hemaraj Nghe An JSC/3
99.00%
/5 Including the 8th capital reduction /6 Including the 2nd capital reduction /7 Including the 1st capital reduction
6
Gulf VTP Gulf TS1 Gulf TS2 Gulf TS3
25.01% 25.01% 25.01% 25.01%
As of Nov 2017 7
Achieved additional land sale of 138 rais in Q3’17, totaling 722* rais in 9M’17
349 rais remaining backlog as of Q3’17
711 customers with 1,073 contracts as of 3Q’17
The 10 new contracts for land sale
are in main industry such as petrochemical, electronics, steel and other industries (logistic and service) from 4 different region such as China, Thailand, Japan and other
Vietnam Project
Received IRC (Investment Registration Certificate) from the Vietnamese government, totaling 498 Ha (c.3,100 rais) for 1st phase in Nghe An province
• Land Hand-over will likely be completed by year-end
During 9 months, WHA has secured pre-leased area/new contracts for Built-to-Suit, warehouse farm and RBF/RBW totals 103,858 sq.m.
60,631 sq.m. for Built-to-Suit and warehouse farm which mostly located in Bangna-Trad zone
43,227 sq.m. for RBF and RBW
There are concrete deals in pipeline, including Third-party Asset Acquisition, amounting to 144,390 sq.m. to be concluded within Q4’17
Utilities business Volume increased by 4% and 6% in
Q3’17 and 9M’17, respectively Revenue increased by 9% and 9% in
Q3’17 and 9M’17, respectively (excluding one-time excessive charge)
The increase was mainly due to new customers especially from new SPPs which mostly use processed water, having higher selling price and margin.
Power business Increase in Equity MW from 319.3
MW to 447.1 MW due to COD of following SPPs: Bowin Clean Energy achieved COD
in Nov-16 Gulf VTP achieved COD in May-17 Gulf TS1 achieved COD in Jul-17 Gulf TS2 achieved COD in Sep-17
GHECO-ONE back to full quarter operation after planned shutdown maintenance in Jan-Feb and expects higher AP during Q2’17-Q4’17 to fully compensate lower AP in Q1’17
Under the initial phase, 3 Data Centers will commence their operations c. 450 racks in Q4’17 in Vibhavadi Rangsit and Bangna-Trad area
Initial complimentary services have already started its operation e.g. System Integration
FTTx (Local Loop) has commenced its operation, providing fiber optic services in Hemaraj Industrial Estates i.e. HESIE2, HESIE4 and HCIE2
Q3’17 Operating Performance
Summary of Business Performance
* Including land allocated to RBF/RBW
Remark: The Utilities & Power business’s operating matrix under WHA level may differ from one shown in WHAUP level as a result of Pre-IPO restructuring, resulting in partial recognition in FY2016 under WHAUP.
As of Nov 2017 8
Industrial Estate Business - Performance
No. 1 by Land Sale with 34% market share from 2008 – Q2’2017. However, in the period 2015 – Q2’2017, the company achieved more than 50% market share on the average
Year Market (rai) Hemaraj (rai) % Market
2Q17 112 70 63%
1Q17 560 514 92%
2016 1,442 835 58%
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 35,579 12,009 34%
Source: CBRE and Hemaraj
2,317 2,200
665
1,043 835
722
0
500
1,000
1,500
2,000
2,500
2012 2013 2014 2015 2016 9M'17
Our Land Sales Record
Unit: rai
Industrial Market Share
34% Market Share c. 12,000 rai of Total Land Sales from year 2008 until
second quarter of 2017
Summary of Business Performance
As of Nov 2017 9
Industrial Estate Business – Customer Profile
Customer by Industry
Customer by Nationality
Our Customers and Contracts
2012
711 Customers
Q3’17
832 Contracts
2012
1,073 Contracts
Q3’17
555 Customers
Auto 34%
Consumer 13% Petrochemical
9%
Steel/Metal 8%
Electronics 8%
Building Material
7%
Logistics 5%
Others 15%
Japan 38%
Thailand 19%
Europe 11%
USA 9%
Australia 5%
Taiwan 3%
India 2%
China 3%
Korea 2%
Other Asia 7%
9 Operating
Industrial Estates
3
New Industrial Estates
Summary of Business Performance
As of Nov 2017 10
Investment in Vietnam – Nghe An Project Overview
Tentative Project Timeline
Received IRC (Investment Registration Certificate) from the Vietnamese government
Area granted: 498 hectares (c. 3,100 rais)
Submitted EIA application and expected completion of EIA approval in 2017
Received master plan approval
o Expected completion of land handover
o Commencement of development
o Initial development of c. 1,000 rais
Q2’17 Q3’17
o Commencement of pre-sale
o Continue development of the remaining area
Q4’17 Q1’18
Summary of Business Performance
Granted Investment Registration Certificate for first phase of “WHA Hemaraj Industrial Zone” of 498 hectares in Nam Cam, Nghe An province
As of Nov 2017
Logistics & Industrial Properties Business - Performance
Group-Owned assets and preleased Asset Under Management
11
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017YTD
88,913 141,619 141,619 169,433 192,341
298,139
505,051
1,108,740
891,286
Total 2,123,988
1,975,792
Unit: Sq.m.
2,115,723
Area owned by Hemaraj and its subsidiaries
Area sold to HPF and HREIT
Industrial Properties
Area owned by WHA and its subsidiaries
Area sold to WHART, WHAPF and WHABT
Logistics Properties
709,317
297,886
411,431
709,317 1,414,672
921,395
493,277
1,414,672
Summary of Business Performance
Location • Bangna-Trad
km 18-23 • Ladkrabang • Rama II • Laem Chabang • Lum Luk Ka • Wangnoi
Location • Chonburi • Rayong • Saraburi • Prachin Buri
Area: 2,144 rais Area: 979 rais
As of Nov 2017
Logistics & Industrial Properties Business - Performance
12
Unit: Sq.m.
During 2017YTD, WHA secured pre-lease area/ new contracts for Built-to-Suit, warehouse farm and RBF/RBW totals 103,858 sq.m. Consist of:
60,631 sq.m. for Built-to-Suit and warehouse farm which mostly located in Bangna-Trad zone
43,227 sq.m. for RBF and RBW
There are high potential deals in pipeline, including third-party Asset Acquisition, amounting to 144,390 sq.m. to be concluded within Q4’17 105,986
13,845 6,293 40,493
60,631
35,595
11,739 -
31,488
43,227
144,390
-
50,000
100,000
150,000
200,000
250,000
300,000
2016 Q1'17 Q2'17 Q3'17 9M'17 2017F
Potential Deal RBF/RBW BTS/Warehouse farm
141,581
25,584
6,293
71,981
Pre-Leased / New Contracts
Summary of Business Performance
248,248
103,858
As of Nov 2017 13
Logistics & Industrial Properties Business – Tenants Profile Summary of Business Performance
Logistics Properties Business
29%
29%
19%
15%
7%
1%
Thai
Japan
Europe
Asia(Exclu. Japan, Thai)
USA
Other
26%
41%
27%
6%
3PL
FMCG&Healthcare
Manufacturer
Other
Industrial Properties Business
36%
21% 9%
8%
12%
10% 4% Japan
Europe
Asia(Exclu. Japan, China)
USA
Australia
China
Other
39%
19%
10%
12%
5%
15% Auto&Parts
Logistic
Electronic
Consumer
Industrial Service
Other
Customer by Nationality Customer by Industry
As of Nov 2017
Logistics Properties - Selected Well-Known Tenant Profile
14
Summary of Business Performance
As of Nov 2017
12 13 4 4 8 9 25 26
3Q'16 3Q'17
Utilities Business – Performance
15
Utilities Portfolio Growth – Volume and Selling Price
Million m3/ year
14.5
16.6
16.0
Average Selling Price
Baht/ m3 Baht/ m3
Baht/ m3 Selling Price Growth
• CAGR2012-2017 2.7%
Volume Growth
• CAGR2012-2016 4.3%
Potential Demand from New Power Plants
Water Consumption 2017E 2018E 2019E 2020E 2021E
SPP COD 3,800 – 4,500 m3/day
GVTP (May 17)
Gulf TS1 (Jul 17)
Gulf TS2 (Sep 17)
Gulf TS3 (Nov 17)
Gulf TS4 (Jan 18) GNLL2 (Jan 19) TBA
TBA
TBA
On Schedule
CCE Waste to Energy 1,000 m3 / day
Summary of Business Performance
Remark: The Utilities & Power business’s operating matrix under WHA level may differ from one shown in WHAUP level as a result of Pre-IPO restructuring, resulting in partial recognition in FY2016 under WHAUP.
Quarter
34 39 42 43 46 34 36
23 22 21 19 17 12 12
28 29 31 32 33
24 26
85 90 94 94 96
70 74
-10
10
30
50
70
90
110
130
150
2012 2013 2014 2015 2016 9M'16 9M'17
Industrial Water Raw Water Wastewater
As of Nov 2017
Port
folio
Ana
lysi
s Power Business – Well-Balanced Portfolio with Strategic Location
16
Port
folio
Ana
lysi
s Maturity < 20 Years, 10%
Maturity ≥ 20 Years, 90%
IPP 53%
SPP 47%
By Type of Power Plant By Type of Sourcing
Coal 43%
Gas 53%
Hydro 4%
By Type of Power Plant By Type of Sourcing
VSPP 100% Solar 53%
WTE 47%
Conventional Power: 537.1 Equity MW Secured
Alternative Power: 4.9 Equity MW Secured EGAT/ PEA/ MEA, 95%
Industrial
Users, 5%
Highly reliable off-taker (EGAT)/1
Client Profile
Maturity ≥ 20
Years,
100%
Long-maturity Portfolio
Additional Incoming Project in 2017-2018
2016
Port
folio
Sum
mar
y Summary of Business Performance
Project Name Type JV Partner Location Contracted Capacities (MW)
WHAUP Portion Equity MW COD
Operating Phase Gheco-I IPP Coal Glow Map Ta Phut IE 660.0 35.00% 231.0 Q3’12 Glow IPP IPP Gas Combined Cycle Glow HCIE 713.0 5.00% 35.7 Jan-03 Houay Ho Power IPP Hydro Glow Lao PDR 152.0 12.75% 19.4 Sep-99 GJP NLL SPP Gas Co-gen Gulf JP HRIL 122.5 25.01% 30.6 May-13 Gulf Solar VSPP Solar Gulf HLP1, HCIE, HESIE, ESIE 0.6 25.01% 0.1 Jun-14 – Jan-15 WHA Gunkul VSPP Solar Gunkul Bangna and Ayudthaya 3.3 74.99% 2.5 Apr – Jul-14 BGWHA-1 SPP Gas Co-gen B Grimm HCIE 121.0 25.01% 30.3 Nov-16 GVTP SPP Gas Co-gen Gulf MP ESIE 130.0 25.01% 32.5 May-17 GTS1 SPP Gas Co-gen Gulf MP ESIE 130.0 25.01% 32.5 Jul-17 GTS2 SPP Gas Co-gen Gulf MP ESIE 130.0 25.01% 32.5 Sep-17 GTS3 SPP Gas Co-gen Gulf MP HESIE 125.0 25.01% 31.3 Nov-17
Total 2,287.4 478.4 Construction Phase
GTS4 SPP Gas Co-gen Gulf MP HESIE 125.0 25.01% 31.3 Jan-18 GNLL2 SPP Gas Co-gen Gulf MP HRIL 120.0 25.01% 30.0 Jan-19
Total 245.0 61.3 Development Phase
CCE VSPP Waste-to-energy Glow& Suez HCIE 6.9 33.33% 2.3 2019 Total 6.9 2.3
As of Nov 2017
Revenue from Sales of Properties THB 445 mm 40% • Mainly from higher selling price of land transfer and sale of Investment Properties to JV.
Rental, Service Revenue and Other Incomes
THB 306 mm 34% • Mainly from large asset monetization to HREIT and WHART in 2016.
Revenue from Sales and Service (Utilities Business)
THB 499 mm 5% • Mainly due to decrease in excessive charge YoY basis
Share of Profit from Joint Ventures THB 563 mm 156% • Mainly due to additional 4 SPPs which commenced its operation from Nov 16 onwards resulting in 447 Equity MW as of 3Q’17.
Interest Expenses THB 406 mm 35% • Substantially decrease in interest expense from 1. Loan repayment of THB 5,000 mm in early Apr 17 from WHAUP’s
IPO proceeds. 2. Bond repayment of Hemaraj of THB 2,300 mm in Jul 17. 3. Loan refinancing by bond issuance of THB 4,000 mm under WHAUP
having lower cost of fund from 4.20% to 3.33% in Sep 17
Net Profit Attribute to Owners of the Parents
THB 506 mm 1088% • Good performance quarter due to 1. Higher share of profit from strong performance of power business. 2. Higher profitability from industrial estates business. 3. Low interest expense.
Financial Highlights 3Q’17
Financial Performance
Remark: Power & Utility Businesses were full year performance comparing to WHAUP, which was partial consolidation 17
Total Revenue and Share of Profit : THB 2,150 mm 32% YoY
As of Nov 2017
+ 30%
Overall Performance
Financial Performance
3Q’17 PERFORMANCE Unit: THB mm
18
Total revenue increased 13% from 3Q’16 to THB 1,586 mm in 3Q’17, mainly due to the fact higher selling price of land transfer in 3Q’17 compared with 3Q’16, sale of investment property to JV and right of way charged in Hemaraj IE.
EBITDA increased by 46% YoY to THB 1,264 mm in 3Q’17, resulting from an increase of share of profit of power business in 3Q’17 and achieved B.Grimm Power, Gulf VTP, Gulf TS1 and Gulf TS2 COD on planned schedule of 128 equity MW.
Share of profit from JVs 3Q’17 increased by 156%, compared with 3Q’16 as B.Grimm Power, Gulf VTP, Gulf TS1 and Gulf TS2 have commenced its COD in Nov 2016, May 2017 July 2017 and Sep 2017, respectively adding our portfolio up to 447 Equity MW. Moreover, there was unrealized FX gain amount of THB 120 mm during this quarter.
Net profit attributable to owners of the parent increased to THB 506 mm in 3Q’17 or increase at the rate of 1,088% YoY mainly from an increase of total revenue and share of profit and decrease of financial cost after WHAUP’s loan refinancing, hemaraj’s bond repayment and loan repayment in 2Q'17 from WHAUP’s IPO proceed.
OVERALL HIGHLIGHT
+ 32%
+ 46%
+ 1,088%
+ 214%
+ 30%
As of Nov 2017
Profitability by Business
RENTAL PROPERTY BUSINESS SALES OF PROPERTIES BUSINESS
Unit: THB mm
Financial Performance
OTHER REVENUES
The increase in other revenues in 3Q’17 mainly resulted from right of way charged in Hemaraj IE amounting to THB 209 mm
Hemaraj sold investment estates amounted to THB 373 mm in 3Q’17, a margin of 62% on genuine operation’s level and 45% on consolidated level after PPA. The increase was mainly due to higher selling price of land transfer in 3Q’17
WHA had revenue recognition from assets monetization to WHA – Daiwa joint venture equal to THB 59 mm in 3Q’17
Rental and service income of WHA decreased by 32%, while RBF/RBW from Hemaraj decreased by 36% in 3Q’17 from 3Q’16 as a result of large assets monetization into HREIT amounting to 261,314 sqm in 4Q2016.
Remark: Other revenues consist of property and REIT management fee, dividend income, share of profit from property fund, and other income
19
Real GPM before PPA of 3Q’17: 58% (3m), 58% (9m) Real GPM before PPA of 3Q’17: 53% (3m), 58% (9m)
Gross profit margin on consolidated financial statement is different from that on operation financial statement (genuine performance) due to the effect of PPA adjustment after acquisition
As of Nov 2017
Profitability by Business (Con’t)
UTILITIES BUSINESS POWER BUSINESS
Unit: THB mm
Gross profit margin on consolidated financial statement is different from that on operation financial statement (genuine performance) due to the effect of PPA adjustment after acquisition
Financial Performance
The slight decrease by 5% YoY in income from utilities business was mainly due to lower excessive charge YoY which was compensated by the increase in volume and selling price of utilities by 3.8% and 5.1% respectively from the same period last year
Power business performance in 3Q’17 was higher compared to that in 3Q’16 as B.Grimm Power, Gulf VTP, Gulf TS1 and Gulf TS2 has COD in Nov 2016, May 2017 July 2017 and Sep 2017, respectively adding our portfolio up to 447 Equity MW.
Moreover, due to the strength of THB currency, there was unrealized gain from FX of THB 120 mm in 3Q’17
Remark: Power & Utility Businesses were full year performance comparing to WHAUP, which was partial consolidation 20
Real GPM before PPA of 3Q’17: 46% (3m), 48% (9m)
As of Nov 2017
CAPITAL STRUCTURE
21
Unit: THB mm
BREAKDOWN CAPITAL STRUCTURE
RETURN ON INVESTMENT
Financial Performance
Weighted Average Interest Rate
4.24%
WEIGHTED AVERAGE COST OF DEBT
As of Q3’17
Remark: ROE = Trailing 12 months net Income attributable to parent / Average total equity attributable to owners of the parent
ROA = Trailing 12 months net income / Average total asset ROIC = Trailing 12 months NOPAT / Average Invested Capital (IBD and Equity)
As of Nov 2017
Debt Maturity Profile & Finance Cost
DEBT SERVICE FOR EACH PERIOD
Unit: THB mm
FINANCE COST
Financial Performance
Unit: THB mm As of 30 Sep 2017
22
Remaining
Remark: Debt principle balance
As of Nov 2017
Recent Developments/Key Events
WHAPF and WHART’s approvals on conversion and plan to acquire the assets from WHA approx. THB 3,090 mm on 13 Jul 2017
Filing Effective: 10 Nov 2017 Asset Transfer: within Dec 2017
23
Asset Monetization
to HREIT
Asset Monetization
to WHART
1
2
Recent Developments/Key Events
Remark: The cost of asset sale to REITs shown under non-current asset held for sale is THB 2,230 mm
Cash Dividend: THB 0.0488 per share or
approx. THB 699 mm XD: 22 Nov 2017 Dividend Payment Date: 8 Dec 2017
Cash Dividend
3
“A-” Rating initialed by
TRIS
4
HREIT’s approval on asset acquisition from
Hemaraj not more than THB 1,690 mm on 21 June 2017
Day-1 counting of filing: 21 Oct 2017 Fund Raising Completion: Dec 2017
TRIS has announced the company rating at “A-” Stable outlook on 14 Nov 2017
As of Nov 2017
2017 Outlook Company Outlook
24
Industrial Estate
Business
Logistics Business
Utilities & Power
Business
Digital Business
• CAPEX: THB 7,000 – 7,300 mm (2017F) • Weighted average cost of funding: < 4.5% • Net Gearing Ratio: 1.2 - 1.3 times (Year-End 2017F)
Financial Outlook
• 3 Data Centers of c. 450 racks will commence its operations in Q4 2017 • Expand FTTx (local loop) facilities in Hemaraj’s Industrial Estates
Utilities Business • COD of 4 SPPs is expected to add approx. 3-4 million m3/yr • Incremental demand from both existing customers and new IE customers will add another 3-4 million m3/yr • The average water tariff increases by approx. 3% Power Business • COD of 4 SPPs, 2 SPPs already operated, another 2 SPPs are scheduled in September and November 2017. Year-end power
generation will reach 478 equity MW • Gheco-one expects higher availability payment during 2H17 to fully compensate lower AP revenue in 1Q’17.
• Pre-lease/ new contract area approximately 200,000-250,000 sq.m. • Monetize BTS/warehouse asset to WHART for 84,967 sq.m. with asset value THB 3,090 mm • Monetize RBF/RBW to HREIT for 55,131 sq.m. with projected asset value THB 1,690 mm
• Pre-sale target: 1,000 – 1,400/1 rais
• Land transfer target: 1,000 - 1,100 rais
• Commencement of Vietnam investment with 1,000 rais development starting from Q4’17
Remark: /1Some of land sale portion is subject to final negotiation which may deviate from the expected year-End execution
As of Nov 2017
Financial Outlook FY2017F
Revenue from Sale of Properties Industrial Land Sale
(Industrial Estate Business) Investment Properties Sale
(Logistics Business)
• High profitability both cash and accounting recognition • Divested leasable area 140,000 sq.m. to WHART and HREIT
combined (vs. 420,455 sq.m. in 2016) • Higher profitability from asset sale to REITs
Rental , Service Revenue and Other Incomes (Logistics Business)
• Mainly due to industrial properties sold to HREIT (261,314 sq.m.)
Revenue from Sale and Services (Utilities Business)
• Increasing volume and selling price in all products with high profitability
• More water-intensive users from petrochemical and power customers
Share of Profit from Joint Ventures (Power Business)
• Improvement of existing 349.6 MW power business and operation
• Most recent B-Grimm Power (WHA) COD achieved in Nov 2016
• Upcoming 128.8 MW to be recognized throughout FY2017
25 Remark: The Utilities & Power business’s operating matrix under WHA level may differ from one shown in WHAUP level as a result of Pre-IPO restructuring, resulting in partial recognition in FY2016 under WHAUP.
Company Outlook
Target Revenue and Share of Profit : THB 13,000 mm
As of Nov 2017
Financial Outlook FY2017F (Con’t)
Interest Expenses • Substantial low gearing ratio • Continuous efforts to lower cost of funding
Net Gearing Ratio • Expected to reduce from 1.70x to c. 1.25x at the end of 2017
Net Profit Attribute to Owners of the Parents
• All normalized profit with normal size of asset monetization to REITs
• Higher earnings visibility due to higher recurring income portion
• Higher profitability by nature of recurring income base and lower interest expenses
26
Company Outlook
As of Nov 2017
Long-Term Outlook
27
THB 13,000 mm
2015A
2020F
THB 21,000 mm
2017F
THB 12,064 mm
• 32% recurring income • 2.0 million sq.m. leasable area • 8 industrial estates • 90 million m3/year • 320 equity MW • 1 international project
• 35% recurring income • 2.3 million sq.m. leasable area • 9 industrial estates • 102 million m3/year • 478 equity MW • 2 international projects
• 50% recurring income • 3.3 million sq.m. leasable area • 12 industrial estates • 190 million m3/year • 620 equity MW • > 3 international projects
Revenue and Share of Profit
Company Outlook
As of Nov 2017
5-Year Aspirations
28
2020 Goals
Recurring Income c. 50%
NPAT Growth 10%-15% p.a.
ROE 18%-20%
Gearing Ratio <1.0x
Growth Driver
• Consolidate and Synergize 4 Business Hubs together with Utilizing Our Established Platform
• Maximize Asset Value and Productivity
Expand through Strategic Investment and Acquisition
Expand to Strategic Countries, especially CLMVI countries
Measurement
• Recurring Income c. 50% • Improvement of Margin
• Increase revenue and net profit from overseas
Company Outlook
As of Nov 2017
Strategy
29
• Complete and Roll out services of all 4 Data Centers with higher standard at Tier-3
• Be leader in Managed Services with Platform and Data Centers as World-Class Cloud Service provider
• To become One-Stop Service Data Center Developer and Provider by collaborating with reputable partners focusing on networking strength and cyber security management
• Integrated Solutions In Utilities and Power business, expansion 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
Utilities & Power Hub Strategy
Digital Hub Strategy
• Extend our Leadership as Thailand’s No 1 Industrial Estate Developer leveraging Eastern Economic Corridor (EEC)
• Establish our premium brand in regional countries to capitalize growth opportunities and to diversify our portfolio
• Expand towards high-value integrated property projects (“Specialized Estates”)
Industrial Hub Strategy
Logistics Hub Strategy • Further initiate the BTS project into Thai logistics market by utilizing the credentials, expertise and long-
standing relationships with all customers
• Expand to ASEAN Countries and new area including Indonesia, Vietnam, Myanmar, Malaysia and Cambodia by leveraging on group business
• Capitalize on government policy focusing on high-value industry clusters e.g. multi-temp facilities, Automation Robotics and e-commerce
Company Outlook
As of Nov 2017
Appendix
30
As of Nov 2017
Source: BOI, NESDB, Fiscal Policy Office, and MOF
Appendix
Industry Outlook – EEC (Eastern Economic Corridor)
EEC refers to Eastern Economic Corridor. It is a Thailand’s Government’s initiative designed to put Thailand into a second S-Curve and propel the industries up the value chain by promoting high-tech industrial cluster and utilize on new and existing infrastructure development. EEC has taken effect via enforcements of Special Decree (Section 44) whilst enacting the relevant acts through Council of State and National Legislative Assembly (NLA). Key aspects of EEC include: 1. Industry focus – 10 targeted industries 2. Area (zone based) development – Chonburi, Rayong and Chanchoengsao 3. Infrastructure development – multi-modal transportation network surrounding the areas 4. New Tax Incentives – To cover Corporate Income Tax and Personal Income Tax level.
31
As of Nov 2017
New Growth Engine: 10 Targeted Industries 3 Areas designated for development
• 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
Appendix
Industry Outlook – EEC (Eastern Economic Corridor)
32
Biofuel and Biochemical
Next-Generation Automotive
Affluent, Medical and Wellness Tourism
Agriculture and Biotechnology
Smart Electronic
Food For The Future
Digital Economy
Medical Hub
Automation and Robotics
Aviation and Logistics
As of Nov 2017
Appendix
Industry Outlook – EEC (Eastern Economic Corridor)
33
Combined Public and Private Investment 3
U-Tapao Airport • Expansion of terminal capacity from 3 million to 15 million passengers • 1st phase MRO (Maintenance Repair & Overhaul center) • Expansion of 2nd runway
Laem Chabang Port (3rd Phase)
• Expansion to support growth • Logistics hub and Gateway for Indo-China • Move into World’s Top 10 port
High-Speed Train
• Connect 3 main airports : Donmuang, Suvarnabhumi and U-Tapao in 1 hour
• Accommodate 110 million passengers/year
Dual-Track Railway • Connect 2 major ports : Laem Chabang to Map Ta Phut seaport
Motorway
• Pattaya – Maptaphut • Saraburi – Nakorn Rachasima • Bang Yai – Kanchanaburi
5 High Priority Projects to start in 2017
1
2
3
4
5
Remark • To expedite the process, the Government recently invoked S.44 of Royal Decree to speed up the EIA, Fast-Track Public Private Partnership (PPP)
and bidding package which will commence from 2017 onwards
As of Nov 2017
Newly Proposed Tax Incentives 4
Appendix
Industry Outlook – EEC (Eastern Economic Corridor)
34
• Corporate income tax exemption up to 15 years for qualified technology e.g. biotech, nanotech etc.
• Exemption of import duty on machinery and essential raw materials used for exports
• Financial incentives for investment in R&D, innovation or human resources development in targeted industries
• Maximum personal income tax of 17% for management, Investors and experts • Five-year work permit
• Land lease up to 99 years (For State-owned Enterprise Land)
• Freehold land (For industrial estate developed in private operator)
• Fast-track EIA
• 6-9 month public-private-partnership
• International head quarter (IHQ) and international trading center (ITC) to relax taxation for MNCs
Corporate incentives
Personal incentives
Other incentives
As of Nov 2017 35
Investment in Vietnam – Nghe An Project Overview
Appendix
As of Nov 2017 36
With 3,200 ha, economies of scale to create industrial clusters
WHA Hemaraj Industrial Zone 2 – Tho Loc [1,160ha]
WHA Hemaraj Industrial Zone 1 – Nam Cam [2,040ha]
Total Development of Industrial Zone and Township Zone in Dong Nam
Economic Zone is 3,200 ha
Investment in Vietnam – Nghe An Project Overview
Appendix
As of Nov 2017 37
Investment in Vietnam – Nghe An Project Overview (Cont’d)
c. area: 2,040 ha
c. area: 1,160 ha
Appendix
As of Nov 2017 38
Investment in Vietnam – Nghe An Project Overview (Cont’d)
c. area: 2,040 ha
c. area: 1,160 ha
Appendix
As of Nov 2017
Shareholding Information / Board of Director
Shareholding Information/1
Top 10 Shareholder/1
Shareholder No. of Share/3 %
1) WHA Holding Co., Ltd. 3,629,083,491 25.3
2) Ms. Jareeporn Jarukornsakul 1,629,989,569 11.4
3) Mr. Somyos Anantaprayoon 1,090,894,523 7.6
4) UBS AG HONG KONG BRANCH 101,400,000 0.7
5) CREDIT SUISSE AG, SINGAPORE BRANCH 321,473,360 2.2
6) STATE STREET BANK EUROPE LIMITED 1,431,873,815 10.0
7) Thai NVDR Co., Ltd. 388,720,713 2.7
8) Mr. Sompong Chonkadeedumrongkul 247,160,300 1.7
9) N.C.B.TRUST LIMITED-NORGES BANK 11 217,217,300 1.5
10) Mr. Wut Jarukornsakul 158,500,000 1.1
Major Shareholder /2
39
Board of Director and Management
Dr. Somyos Anantaprayoon Chairman of Board of Directors
Ms. Jareeporn Jarukornsakul Vice Chairman of Board of Directors Group Chief Executive Officer
Mr. David Richard Nardone Vice Chairman of Board of Directors Chief Executive Officer- Industrial Business
Mr. Vivat Jiratikarnsakul Director Chief Operating Officer-Industrial business
Mr. Arttavit Chalermsaphayakorn Director Chief Financial Officer
Mr. Jakrit Chaisanit Director Chief Operating Officer-Logistics business
Mr. Narong Kritchanchai Director Chief Legal Officer
Mr. Krailuck Asawachatroj Director Chief Strategic Officer
Mr. Somsak Boonchoyreungchai Director Director of Accounting Department
Dr. Apichai Boontherawara Independent Director Chairman of the Audit Committee
Dr. Kritsana Sukboonyasatit Independent Director Member of the Audit Committee
Mr. Chanvit Amatamatucharti Independent Director
Dr. Somsak Pratomsrimek Independent Director Member of the Audit Committee
Appendix
Remarks: /1 Shareholder information as of May 11, 2017 /2 Major shareholder holds 47.3% 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.
47.3%
27.2%
8.5% 17.0%
Major Shareholders
Local Retail
Local Institution
Foreign Institution
As of Nov 2017 40
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