Ananda Development Public Co. Ltd. · SET:ANAN
Ananda Development Public — Q2 2019 Earnings Presentation
29 slides from Ananda Development Public's earnings presentation, Aug 9, 2019
Slide 1: 2Q2019 Results and Business Plan
2Q2019 Results and Business Plan
Slide 2: Disclaimer
Disclaimer The information (“Confidential Information”) contained in this presentation is strictly confidential and is provided by Ananda Development Public Company Limited (the “Company”) to you solely for your reference. Neither this presentation nor any part thereof may be (i) used or relied upon
Slide 3: Profitability: Investment from Joint Ventures was a Key Contribution
Profitability: Investment from Joint Ventures was a Key Contribution 2Q2019 1Q2019 2Q2018 % Q-o-Q % Y-o-Y M Baht % M Baht % M Baht % Total revenue 2,037 100% 1,822 100% 2,426 100% 12% -16% Revenue from sale of real estate 871 43% 775 43% 1,534 63% 12% -43% Project management and commission income 43
Slide 4: Profitability: Investment from Joint Ventures was a Key Contribution (1H2019)
Profitability: Investment from Joint Ventures was a Key Contribution 1H2019 1H2018 % Y-o-Y M Baht % M Baht % Total revenue 3,859 100% 5,246 100% -26% Revenue from sale of real estate 1,646 43% 3,387 65% -51% Project management and commission income 904 23% 927 18% -2% Construction income 854 22% 624
Slide 5: Profitability: Investment from Joint Ventures was a Key to Grow
Profitability: Investment from Joint Ventures was a Key to Grow Unit: M Baht 8,265 15% 1H19 Transfers from JV 7,212 GROWTH YOY TRANSFERS 624 Share Profit from JV 473 83% FROM JV PROJECTS %Gross Profit Margin 36% 34% MAINTAIN HIGH LEVEL OF PROFIT MARGIN %Net Profit Margin 20% 18% 1H18 1H19 5
Slide 6: Balance Sheet: Business Growth with Discipline
Balance Sheet: Business Growth with Discipline 2Q2019 1Q2019 2Q2018 % Q-o-Q %Y-o-Y M Baht M Baht M Baht Cash balance and equivalent 5,912 4,626 1,585 28% 273% Assets 48,497 43,012 35,504 13% 37% Interest bearing debts 24,116 18,715 17,274 29% 40% Liabilities 29,558 23,659 21,642 25% 37% Shareholders
Slide 7: Business Growth with Discipline: Bond Covenants 2.5 Times
Business Growth with Discipline Bond Covenants 2.5 Times 1.5 1.2 1 0.5 0 2014 2015 2016 2017 2018 1H2019 Note : Net Interest bearing debt including JV debt to equity 7
Slide 8: Key challenges to Thailand real estate market
Key challenges to Thailand real estate market 1 2 3 Macro Prudential Trade War/Thai Revised down Policy Baht appreciation Thailand GDP Growth Effective 1 Apr 19 onwards, LTV Negative growth rate of Thailand GDP was revised down will be decreased to 80% for; Chinese demand impacted to 3.3% from 3.8%
Slide 9: Launch Target 2019: Moderate Growth with Mid-End Segment Focus
Launch Target 2019: Moderate Growth with Mid-End Segment Focus 33 BILLION BAHT 92 % 23 CONDOMINIUM % GROWTH FROM 2018 7 PROJECTS 9 PROJECTS 6 JOINT VENTURE PROJECTS From original plan of 10 projects at 38 Bn 98% CONDO LAUNCH 8 % 32,937 26,756 HOUSING 2 PROJECTS 2013 2014 2015 2016 2017 2018 2019 9
Slide 10: Launch Target 2019: Moderate Growth with Mid-End Segment Focus
Launch Target 2019: Moderate Growth with Mid-End Segment Focus 33 BILLION BAHT 9 PROJECTS 6 JOINT VENTURE PROJECTS NO. LAUNCH BEGINS 1Q19 2Q19 3Q19 4Q19 2019 Condo - 9,638* - 20,496 30,134 Housing - 1,369 1,434 - 2,803 TOTAL (MILLION BAHT) - 11,007 1,434 20,496 32,937 NO. OF CONDO PROJECT - 1 JV - 6
Slide 11: Presales Target 2019: Adjust to Current Market Sentiment
Presales Target 2019: Adjust Presales Target to be in line with Current Market Sentiment 28 BILLION BAHT 13 % HOUSING From original plan of 36 Bn 87 % CONDOMINIUM PRESALES 1Q19A 2Q19F 2Q19A 3Q19F 4Q19F 2019F CONDOMINIUM 4,064 5,648 5,215 4,112 11,023 24,414 HOUSING 752 798 885 1,016 1,234 3,886 TOTA
Slide 12: Transfer Target 2019: Adjust Transfer Target to be Aligned with Market
Transfer Target 2019: Adjust Transfer Target to be Aligned with Market 29 BILLION BAHT 92 % CONDOMINIUM From original plan of 36 Bn 8 % HOUSING Transfer 1Q19A 2Q19F 2Q19A 3Q19F 4Q19F 2019F Condo 202 1,290 675 1,284 2,626 4,787 Housing 573 606 196 654 1,112 2,535 Ananda F/S 775 1,896 871 1,938 3,738
Slide 13: Transfer Target 2019: Additional Projects Ready to Transfer in 2H
Transfer Target 2019: 6 Additional Projects will be Ready to Transfer in 2H Mostly in 4Q 43 10 % NEW CONDO PROJECTS OF TRANSFERS THAT COMPLETE THIS COMING FROM YEAR Transfer Begins 1Q19 2Q19 3Q19 4Q19 NEW PROJECT AT SUKHUMVIT 31 13
Slide 14: Government Stimulus Measure: Benefits for Mid-End Segment
Government Stimulus Measure: Benefits for Value to Mid-End Segment Ananda Finished Unsold Inventories Personal Income Tax Deduction of up to 200,000 Baht was offered for.. ▪ First home/condos buyers Value < Bt5mn ▪ Value of the property worth up to Bt5mn ▪ The incentive ran between 30 April - 31 Dec
Slide 15: Backlog: Over 64% of the next months Transfers were Secured
Backlog: Over 64% of the next 6 months Transfers were Secured Backlog 64% of the next 6 months of 2019 transfers secured by backlog 33.2 Bn Baht 16,219 MILLION BAHT 12,240 MILLION BAHT 8,545 4,798 4,734 MILLION BAHT 4,743 1,437 7,587 2,555 2,074 625 88 741 2019 2020 2021 Ananda's Backlog - Condo Ana
Slide 16: Transfer Performance: Our Customers were Cashed Up
Transfer Performance: Our Customers were Cashed Up 100% 41 90% % 80% CASH 70% 1H2019 60% 50% 20 %DOMESTIC 40% 21 %INTERNATIONAL 30% 20% 10% 59 % MORTGAGE 0% 1H2019 2015 2016 2017 2018 1H2019 16
Slide 17: 2Q2019 Summary: Business Growth with Discipline
2Q2019 Summary: Business Growth with Discipline ❖New project transfers on schedule ❖SG&A down 21% QoQ and 13% YoY ❖Customers paid cash 40% the same range over the past several years ❖64% of the next 6 months of 2019 transfers secured by backlog ❖Net IBDE ratio including JV at 1.2 below bond covenant
Slide 18: Show Case: Ideo Q Phahol-Saphankhwai
Show Case: Ideo Q Phahol-Saphankhwai ATTRACTIVE SELLING PRICES BETTER SALES SPEED BETTER PROFITABILIY 39% Sold at Launch BREAK THROUGH WITH BIM DEMAND OVER 3 TIMES OF UNITS SOLD 18
Slide 19: Ananda Tech: No.1 BIM Technology In Thailand
Ananda Tech: No.1 BIM Technology In Thailand BUILDING INFORMATION MODELLING (BIM) With BIM technology, more accurate virtual models of a building are constructed digitally; BIM supports design through its phases, allowing better analysis and control than manual processes 4 Goals: 1. Cost Projection;
Slide 20: Project Launch 2019: Mid-End Segment Focus
Project Launch 2019: Mid-End Segment Focus NEW BRAND IDEO Q PHAHOL-SAPHANKWAI SEGMENT MID-END HIGH-END PROJECT VALUE (MILLION BAHT) 8,500-9,500 9,638 SOFT LAUNCH PERIOD 4Q2019 2Q2019 NO. OF UNIT 1,100-1,300 1,114 NO. OF BUILDING/FLOORS 1 BUILDING/30 FLOORS 3 BUILDINGS/39 FLOORS STARING SELLING PRICE
Slide 21: Financial Target in 2019: Adjust Financial Target to Current Market
Financial Target in 2019: Adjust Financial Target to be in line with Current Market 2013 2014 2015 2016 2017 2018 2019 Item Actual Actual Actual Actual Actual Actual Guidance Transfers1 (M Baht) 8,808 9,678 9,598 15,866 15,098 33,171 28,000-31,000 Launches (M Baht) 34,213 14,954 34,828 20,693 42,450
Slide 22: SA Progress Update: Two New Projects to Commence Operation in 2020
SA Progress Update : Two New Projects to Commence Operation in 2020 SOMERSET RAMA 9 Recurring income portfolio diversification, ensuring long term growth As at 4 Aug 2019 SA Portfolio Construction Progress Expected COD SOMERSET RAMA 9 78% Q1/2020 LYF SUKHUMVIT 8 28% Q2/2020 ASCOTT EMBASSY SATHORN 15
Slide 23: SA Progress Update: Two New Projects to Commence Operation in 2020
SA Progress Update : Two New Projects to Commence Operation in 2020 LYF Recurring income portfolio diversification, ensuring long term growth SUKHUMVIT 8 As at 4 Aug 2019 SA Portfolio Construction Progress Expected COD SOMERSET RAMA 9 78% Q1/2020 LYF SUKHUMVIT 8 28% Q2/2020 ASCOTT EMBASSY SATHORN 15
Slide 24: Dividend: Increase Investment Return to Shareholders
Dividend: Increase Investment Return to Shareholders RECORD DIVIDEND PAYOUT RATIO DIVIDEND PAYOUT RATIO SINCE IPO 86% 35% 32% 28% 28% 25% 21% IPO 2012 2013 2014 2015 2016 2017 2018 2019 (Interim) 24
Slide 25: We are built to last from 4 BEs
We are built to last from 4 BEs BE Growth with Discipline BE Partnership BE Diversified in Portfolio BE Care of Shareholders 25
Slide 26: Thank You
Thank You Contact: Dr. Chaiyuth Chunnahacha Mr. Komsan Atthaphonphithak Ms. Katalee Krachangsaeng Chief Financial Officer Senior Investor Relations Manager Assistant Investor Relations Manager Ananda Development Public Company Limited Ananda Development Public Company Limited Ananda Development Publ
Slide 27: Current Projects As Of June 2019
Current Projects As Of June 2019 Economic Unsold Value Backlog Updated: Jun 30, 2019 Project Shareholding Launched Type %Net Sold Inventory %Transfer (M Baht) (M Baht) (ANAN:Partner) (M Baht) ADO: Atoll (Housing) 100 Feb-13 Housing 3,210 51.7% 34 1,842 50.8% AD18: Ashton Asoke (JV) 51:49 Sep-14 Cond
Slide 28: Current Projects As Of June 2019 (Cont.)
Current Projects As Of June 2019 (Cont.) Economic Unsold Value % Net Backlog Project Shareholding Launched Type Inventory %Transfer Updated: Jun 30, 2019 (M Baht) Sold (M Baht) (ANAN:Partner) (M Baht) AD20: Ideo Q Sukhumvit 36 (JV) 26:74 Jun-17 Condo 4,318 55.9% 2,414 1,904 - AD19: Ideo New Rama 9 (
Slide 29: Ananda Tech: Ananda Member Club Mobile Application
Ananda Tech: Ananda Member Club Mobile Application 29
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