Noble Development Public Co., Ltd. · SET:NOBLE
Noble Development Public — Q1 2020 Earnings Presentation
52 slides from Noble Development Public's earnings presentation, May 13, 2020
Slide 1: Analyst Meeting No.2/2020
Analyst Meeting No.2/2020 13 rd May 2020 1
Slide 2: Disclaimer
Disclaimer The information (“Confidential Information”) contained in this presentation is strictly confidential and is provided by Noble Development Public Company Limited (the “Company”) to you solely for your reference. Such information is subject to change without notice, its accuracy is not guar
Slide 3: Total of 49 Residential Projects worth more than 90,000 THB mm
Total of 49 Residential Projects worth more than 90,000 THB mm 19 As of 31st March 2020, total of active projects Inventories approximately 32,000 THB mm 3
Slide 4: Agenda
Agenda 1 New Noble - at a glance 2 Corporate Strategy 3 Operation Performance for 1Q’20 4 Financial Performance for 1Q’20 5 Appendix 4
Slide 5: Key Achievements in 1Q'20
Key Achievements in 1Q’20 KEY ACHIEVEMENTS IN 1Q’20 KEY RESULTS IN 1Q’20 1) New launched 1 project namely “Noble Above Total Revenue Net Profit ROE Wireless-Ruamrudee” with total project value THB 1,100 mm 2) Bond Issuance size THB 482.5 mm with 2,168 411 38.2% THB mm THB mm interest 4.5%, tenor 3 y
Slide 6: Shareholding Structure
Shareholding Structure The main shareholders of the Company will provide the stability and foundation on which the Company can build upon to attain its aspirations. nCrowne Pte. Ltd. Mr. Thongchai Busrapan BTS Group Holdings PCL Other Public Investors (wholly owned by Mr. Frank Leung) nCrowne Pte. L
Slide 7: 2020 Key Deliverables
2020 Key Deliverables Inorganic Asset Acquisition CAPEX Revenue from Third-Party Target Spending 11,000 – 12,000 Pre-Sale 7,000 – 7,500 2020 THB mm Target THB mm Key Deliverables 7 Projects > 12,000 THB mm 1 Launched : Overseas > 25,000 Project THB mm HIGH Dividend Payout Dividend Yield 7
Slide 8: Three-Year Goal
Three-Year Goal The Company has set out ambitious 3-year targets to elevate Noble Development into a best-in-class developer. Pre-2019 2019 2020F-2022F Annual Revenue ~ 5,000 15,039 11,000 – 14,000 (THB mm) Number of Projects 6-7 2 1 per Annum +1 Overseas Project Net Profit Margin (%) 20.0% 20.4% 17
Slide 9: Agenda
Agenda 1 New Noble - at a glance 2 Corporate Strategy 3 Operation Performance for 1Q’20 4 Financial Performance for 1Q’20 5 Appendix 9
Slide 10: Key Initiatives
Key Initiatives The Company has focused on five initiatives to improve shareholders in the short, medium and long term. 1 Asset Optimization Sales of completed inventory, monetisation of commercial property and non-core With High Asset Turnover land plots 2 Broadened Realignment of product mix to co
Slide 11: Divested Commercial Properties
Divested Commercial Properties Noble Ploenchit Tower D Noble Solo Commercial Noble Remix Commercial Noble Ora Commercial Size: 4,446 sqm Size: 1,423 sqm Size: 6,726 sqm Size: 959 sqm Appraised Value: THB 900 mm Appraised Value: THB 167 mm Appraised Value: THB 702 mm Appraised Value: THB 76 mm Status
Slide 12: Inventory Concentration by Value
Inventory Concentration by Value INVENTORY DISTRIBUTION 48.9% 2018 41.8% 40.1% 40.2% 2019 36.1% 2020E 18.6% 15.9% 16.6% 10.8% 8.6% 8.9% 6.4% 6.4% 0.8% 0.0% < 3 THB mm. 3-5 THB mm. 5-10 THB mm 10-20 THB mm > 20 THB mm 12
Slide 13: Inventory Concentration by Value
Inventory Concentration by Value END OF 2018 END OF 2019 FORWARD-LOOKING 2020 2% 11% 22% 13
Slide 14: Developing Brand Pyramid
Developing Brand Pyramid We plan to develop three separate brands to broaden the Company’s appeal beyond Noble’s traditional customer set. • Traditional “Noble” brand to • Develop JV with international developers to target continue to address the customers with different value proposition High End m
Slide 15: Expansion Along Rail Network
Expansion Along Rail Network Noble seeks to expand its portfolio of projects from Central Bangkok to take advantage of transportation infrastructure expansion. The BTS Sukhumvit Line The Sukhumvit Line begins at Kheha Station and ends at Kasetsart University Station. The BTS Silom Line Begins at Ban
Slide 16: Overseas Sales
Overseas Sales OVERSEAS SALES ( 2015 – 1Q’20 ) The total bookings from overseas sales in FY2019 is THB 3,492 mm, exceeding the total overseas booking in FY2018. Unit THB mm 50.3% 4-year CAGR 4,000 3,492 3,000 2,436 2,000 1,000 460 0 2015 2016 2017 2018 2019 1Q'20 16
Slide 17: Noble's Overseas Market Share
Noble’s Overseas Market Share Noble accounted for roughly 1 in 5 sales of Bangkok real estate between 80k to 250k in 2019, making it the market share leader for Thailand properties overseas. Noble Foreign Market Share Analysis >250k or 80k psqm 34% Noble 18% Bangkok Market Rest of Sale Market Addres
Slide 18: Total Accumulated Overseas Bookings by Project
Total Accumulated Overseas Bookings by Project Furthermore, the overseas market is more continuous and less dependent on initial launch campaigns to drive sales. Breakdown of Overseas Bookings by Project (THB mm) Noble Ploenchit Noble Revolve Ratchada Noble Revolve Ratchada II Noble Revo Silom Noble
Slide 19: Noble's Overseas Channel Profiles
Noble’s Overseas Channel Profiles We manage a network of roughly 470 distributors, from different industries and across a wide network, each with differing support requirements. Channels’ Region Channels Divided by Category Unit : Total Numbers of Channels 150 Personal Broker 4 27 5 Traditional Real
Slide 20: Overseas Key Performance Indicators
Overseas Key Performance Indicators We compare strongly against competitors across all key measures, with the exception of conversion rate which is more than offset by a much lower drop rate. Market Average Noble Visit per Month per Marketed Project 40 - 50 Groups 86 Groups 3,208 Groups Total Groups
Slide 21: China after Covid-19
China after Covid-19 China is bouncing back quickly as economic activity resume quickly as new Covid-19 infections subside 1 2 3 Source 1: Libert Times Net, Source 2: Financial Times, Source3: National Bureau of Statistics of China 21
Slide 22: China Property Sales
China Property Sales Local real estate purchases has also resumed quickly, reaching 2018 levels Source: SouFun CREIS 22
Slide 23: Chinese Developers Embracing Online Sales
Chinese Developers Embracing Online Sales A large part of this as been as a result of online sales, which accounts for 15% - 30% of all sales and an estimated 1,000% growth compared to 2019. Newspaper cutting Screenshot of app Source: Bloomberg 23
Slide 24: Noble Digital Initiative
Noble Digital Initiative Since early April, Noble has conducted virtual sales gallery tours and online seminars to attract buyers, with over 20,000+ viewers at its peak Project: Noble Nue Srinakarin-Lasalle Source: 乐居Live Viewers: 23,795 Source: 安居客 Source: 房天下直播 24
Slide 25: Digital Sales Support Tool Prototype
Digital Sales Support Tool Prototype Furthermore, Noble is also launching an online one-on-one sales platform for interested viewers so that travel to Thailand is not necessary for purchase 25
Slide 26: Agenda
Agenda 1 New Noble - at a glance 2 Corporate Strategy 3 Operation Performance for 1Q’20 4 Financial Performance for 1Q’20 5 Appendix 26
Slide 27: Pre-Sales Performance of 1Q'20
Pre-Sales Performance of 1Q’20 Yearly Quarterly Unit : THB mm 17,850 17,064 18,172 15,039 15,437 12,922 9,731 9,902 8,719 6,297 5,153 1,010 3,971 9,654 3,692 5,168 2,305 1,683 2,168 3,893 1,035 2,275 1,010 78 248 119 30 25 2017 2018 2019 1Q'19 1Q'20 Pre-Sales /1 Horizontal Project Condominium Commer
Slide 28: Backlog & Inventory Recognition as of 1Q'20
Backlog & Inventory Recognition as of 1Q’20 Backlog Recognition (2020-2023) Inventory Recognition* (2020-2023) 2023, 2023, 3,024 THB mm, 3,502 THB mm, 20% 21% 2022, 2020, 15,437 16,484 2020, 1,551 THB mm, 7,292 THB mm, 10% THB mm 47% 2022, THB mm 8,415 THB mm, 4,088 THB mm, 51% 2021, 25% 2021, 3,570
Slide 29: Backlog as of 1Q'20
Backlog as of 1Q’20 Pre-sale of project under construction as of 31st March 2020 has created strong backlogs for revenues realization. Completed Inventory Project under construction 18,000 120% 11% Transferred 16,000 1% Backlog 100% 14,000 Inventory 12,000 80% 10,000 87% 60% 8,000 6,000 40% 4,000 39
Slide 30: Down Payment Collection
Down Payment Collection Among the 3 projects to be completed this year, the revenue visibility resulting from each project’s sale backlog is quite certain due to the strong commitment from the buyers who have consistently paid the deposits in the range of 24% - 28% YTD (as of 8 May 2020) Prior to Tr
Slide 31: Potential Sale Campaign to Create Quick Win
Potential Sale Campaign to Create Quick Win For the potential sale of inventory, we have room to maneuver in terms of pricing and still achieve the acceptable margin Total Inventory as of 1Q’20 Sale Campaign Noble Revent Noble Revent 0% 0% Noble Above Noble Above Wireless-Ruamrudee Wireless-Ruamrude
Slide 32: Noble ABOVE Wireless Ruamrudee
NEW PROJECT HIGHLIGHT #1 Noble ABOVE Wireless Ruamrudee Project Details Location : Ruamrudee soi 2 Project Value THB 1,100 mm. Land Area 1-2-18.2 rais Total Units 104 Units, 2 Residential Building Floor 8 Floors Development Type : Refurbishment Launch Timing Q1/2020 Expected Transfer : Q1/2020 Parki
Slide 33: Ratchada – Lat Phrao
NEW PROJECT HIGHLIGHT #2 Ratchada – Lat Phrao INVESTMENT STRUCTURE Project Details Location : Ratchada – Lat Phrao 180 m from MRT Lat Phrao (Blue Line) 70 m from MRT Ratchada (Yellow Line) Project Value Approx. THB 2,000 mm. Land Area 2-0-95.6 rais Development Type : New build Launch Timing Q3/2020
Slide 34: New Projects in 2020
New Projects in 2020 NOBLE ABOVE NUE NOBLE STATE 39 THONGLOR 18 WIRELESS-RUAMRUDEE NOBLE NGAMWONGWAN Launch Timing : 1Q2020 Launch Timing : 1Q2020 Launch Timing : 3Q2020 Launch Timing : 3Q2020 Location : Soi Ruamrudee 2 Location : Soi Sukhumvit 39 Location : Ngamwongwan Location : Soi Sukhumvit 55 P
Slide 35: New Projects in 2020
New Projects in 2020 x NUE NOBLE FAI CHAI-WANG LANG RATCHADA - LATPHRAO WIRELESS ROAD Launch Timing : 3Q2020 Launch Timing : 3Q2020 Launch Timing : 4Q2020 Location : Fai Chai Ratchada – Lat Location : Location : Wireless Road Phrao Project Size : THB 1,200 mm Project Size : THB 2,000 mm Project Size
Slide 36: Agenda
Agenda 1 New Noble - at a glance 2 Corporate Strategy 3 Operation Performance for 1Q’20 4 Financial Performance for 1Q’20 5 Appendix 36
Slide 37: Financial Highlight of 1Q'20
Financial Highlight of 1Q’20 TOTAL REVENUE /1 GROSS PROFIT – REAL ESTATE 57.0% 3,692 28 41.0% 3,663 1,683 2,168 85 2,083 1,981 2,083 2,089 854 1Q'19 1Q'20 1Q'19 1Q'20 Revenue from Revenue Gross Profit % Gross Profit Residential Sale Land & Commercial Properties Sale Others Revenue Sale – Real Estate
Slide 38: Financial Position
Financial Position BALANCE SHEET NET IBD/E Unit: THB mm Net IBD/E stands lower than covenant of 2.50x 21,631 21,988 21,988 1.58x 21,631 1.42x 3,016 3,770 899 5,479 5,896 899 5,852 13,123 12,692 9,235 2019 1Q'20 10,299 6,857 2,925 2,897 RETURN ON INVESTMENT 1,667 1,730 Total2019 Assets Total Liabilit
Slide 39: Debt Profile
Debt Profile Debt Breakdown Fixed Vs Floating Credit Facility & Utilization Long-Term Floating Undrawn Drawn Long-Term Fixed Bonds 45% Facility Facility Loan 55% 4,558 5,550 10,108 4,558 10,108 6,633 11,191 THB mm THB mm THB mm THB mm THB mm THB mm THB mm Weighted Average Cost of Fund Bond Maturity
Slide 40: Key Financial Events
Key Financial Events Bond Issuance 01 02 New Back-up Facilities 03 Dividend Payment 04 Sale of Investment Properties to REIT 05 Abundant undrawn project financing facilities 40
Slide 41: Capital expenditure
Capital expenditure THREE-YEAR CAPITAL EXPENDITURE (2020F – 2022F) 7,599 7,610 7,339 1,232 1,282 4,609 5,861 4,783 1,758 1,478 1,545 2020F 2021F 2022F Land Construction Investment 41
Slide 42: Dividend Payout
Dividend Payout Expected Strong Dividend Payout From Now On • Additional Dividend Payment of THB 2.20 per share will pay on May 2020 on a result of second-half performance of 2019. • With higher liquidity as a result of asset optimization, it is expected that the dividend payout will be passed throu
Slide 43: Agenda
Agenda 1 New Noble - at a glance 2 Corporate Strategy 3 Operation Performance for 1Q’20 4 Financial Performance for 1Q’20 5 Appendix 43
Slide 44: Inventories as of 31 March 2020
APPENDIX Inventories as of 31 March 2020 NOBLE GABLE NOBLE GEO RAMA 5 NOBLE Revent Total Units : 153 Units Total Units : 141 Units Total Units : 261 Units Project Value : THB 1,000 mm Project Value : THB 1,000 mm Project Value : THB 1,400 mm Remaining Units : 66 Units Remaining Units : 9 Units Remai
Slide 45: Inventories as of 31 March 2020
APPENDIX Inventories as of 31 March 2020 NOBLE PLOENCHIT NOBLE REVOLVE RATCHADA NOBLE REVOLVE RATCHADA 2 Total Units : 1,385 Units Total Units : 762 Units Total Units : 751 Units Project Value : THB 17,900 mm Project Value : THB 2,900 mm Project Value : THB 3,200 mm Remaining Units : 151 Units Remai
Slide 46: Inventories as of 31 March 2020
APPENDIX Inventories as of 31 March 2020 NOBLE REVO SILOM NOBLE RECOLE NOBLE BE 33 Total Units : 319 Units Total Units : 288 Units Total Units : 279 Units Project Value : THB 1,800 mm Project Value : THB 2,500 mm Project Value : THB 3,000 mm Remaining Units : 17 Units Remaining Units : 34 Units Rema
Slide 47: Inventories as of 31 March 2020
APPENDIX Inventories as of 31 March 2020 NOBLE ABOVE WIRELESS-RUAMRUDEE Total Units : 104 Units Project Value : THB 1,000 mm Remaining Units : 85 Units Remaining Project Value : THB 800 mm 47
Slide 48: Projects under construction as of 31 March 2020
APPENDIX Projects under construction as of 31 March 2020 NOBLE BE19 NUE NOBLE CHANGE WATTANA Total Units : 586 Units Total Units : 813 Units Project Value : THB 5,900 mm Project Value : THB 2,400 mm Sale Progress : 61% Sale Progress : 89% Development Progress : 86% Development Progress : 64% Expecte
Slide 49: Projects under construction as of 31 March 2020
APPENDIX Projects under construction as of 31 March 2020 NOBLE AROUND ARI Total Units : 611 Units Project Value : THB 4,600 mm Sale Progress : 66% Development Progress : 8% Expected Transfer : 4Q2023 49
Slide 50: Profit & Loss Statement of 1Q'20
APPENDIX Profit & Loss Statement of 1Q’20 YoY Unit : THB mm 1Q'19 1Q'20 MB % Revenue Revenues from Sales - Real Estate Development Business 3,663 2,083 (1,580) -43% - Residential Sale 1,981 2,083 103 5% - Land & Commercial Sale 1,683 - (1,683) -100% Revenues from Sale of Goods,Rental & Services 8 38
Slide 51: Balance Sheet as of 31 March 2020
APPENDIX Balance Sheet as of 31 March 2020 Unit : THB mm 2019 1Q'20 Unit : THB mm 2019 1Q'20 Assets Liabilities Cash and cash equivalents 1,667 1,730 Trade and other accounts payable 1,106 1,121 Temporary investments at financial 35 34 Current portion of long-term borrowings 3,067 4,354 Trade and ot
Slide 52: Information
APPENDIX Information For more information, please contact: K.Benjawan Munikorn Investor Relations Noble Development Public Company Limited Noble Building, 1035 Ploenchit Rd., Lumpini, Pathumwan, Bangkok 10330, Thailand. ir@noblehome.com +66 2 251 9955 +66 2 251 9977 52
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