Ananda Development Public Co. Ltd. · SET:ANAN
Ananda Development Public — FY2018 Earnings Presentation
42 slides from Ananda Development Public's earnings presentation, Feb 26, 2019
Slide 1: 2018 Full Year Results and 2019 Business Plan Analyst Meeting
2018 Full Year Results and 2019 Business Plan Analyst Meeting
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: 2018 Performance: Built to Last with Discipline
2018 Performance: Built to Last with Discipline TRANSFERS A 20 YEAR 33,171 JOURNEY 5,209 1999 2006 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Our JV with Global Political Bangkok IPO JV with Thailand Mourning Trade War 1st Day Pramerica Financial Crisis Unrest Flooding Mitsui Coup Period
Slide 4: 2018 Performance: Deliver All Time High Transfers and Profits
2018 Performance: Deliver All Time High Transfers and Profits TRANSFERS ANANDA SHARE IN TRANSFERS NET PROFIT 120 54 82 % % % GROWTH GROWTH GROWTH YoY YoY YoY 33,171 18,547 2,419 12,077 1,328 15,098 2013 2014 2015 2016 2017 2018 2013 2014 2015 2016 2017 2018 2013 2014 2015 2016 2017 2018 Note : Net p
Slide 5: Dividend: Increase Investment Return to Shareholders
Dividend: Increase Investment Return to Shareholders 6 YEARS DIVIDEND PER SHARE (BAHT) 400% GROWTH 0.2540 0.1275 0.1250 0.10 0.098 0.05 IPO 2012 2013 2014 2015 2016 2017 2018 5
Slide 6: Profitability: Investment from Joint Ventures was a Key to Grow
Profitability: Investment from Joint Ventures was a Key to Grow Y2017 Y2018 % Y-o-Y M Baht % M Baht % Total revenue 12,950 100% 10,555 100% (18%) Revenue from sale of real estate 8,932 69% 5,905 56% (34%) Project management and commission income 2,061 16% 2,080 20% 1% Construction income 1,208 9% 1,
Slide 7: Profitability: Investment from Joint Ventures was a Key to Grow
Profitability: Investment from Joint Ventures was a Key to Grow ALL TIME HIGH Transfers from JV 27,267 342 % GROWTH YOY 6,166 Joint Venture Project 2,341 Performance Share Profit from JV -342 37% %Gross Profit Margin 33% Unit: M Baht 22% %Net Profit Margin 17% 2017 2018 7
Slide 8: Productivity: Improving Efficiency for the Group
Productivity: Improving Efficiency for the Group Transfers & %Admin Expenses to Transfers & Other Incomes Other Incomes (MB) Decreased in 4 Years 40,000 14% 12% 35,000 12% 30,000 10% 25,000 7% 8% 20,000 6% 15,000 4% 10,000 5,000 2% 0 0% 2015 2016 2017 2018 Note : 1 including Joint Venture projects 8
Slide 9: Balance Sheet: Business Growth with Discipline
Balance Sheet: Business Growth with Discipline Y2017 Y2018 % Y-o-Y M Baht M Baht Cash balance and equivalent 2,063 4,914 138% Assets 29,904 41,573 39% Interest bearing debts 12,361 18,396 49% Liabilities 16,444 23,584 43% Shareholders' equity 13,460 17,989 34% D/E ratio (times) 1.22 1.31 7% Net IBDE
Slide 10: Balance Sheet: Business Growth with Discipline
Balance Sheet: Business Growth with Discipline Bond Covenants 2.5 Times 1.5 1.1 1 0.5 0 2014 2015 2016 2017 2018 Note : Net Interest bearing debt including JV debt to equity 10
Slide 11: Transfer Performance 2018: Transfers were All Time High
Transfer Performance 2018: Transfers were All Time High 33,171 INCREASING TRANSFERS 93 % CONDOMINIUM 15,098 2013 2014 2015 2016 2017 2018 7 % HOUSING Transfer 1Q18 2Q18 3Q18 4Q18 2018 Condo 1,342 993 878 435 3,647 Housing 511 542 597 608 2,258 Ananda F/S 1,853 1,534 1,475 1,043 5,905 Ananda Share in
Slide 12: Transfer Performance 2018: 10 New Condo Completed Projects were Transferred
Transfer Performance 2018: 10 New Condo Completed Projects were Transferred 74 10 % NEW CONDO PROJECTS OF TRANSFERS THAT COMPLETE THIS COMING FROM YEAR Transfer Begins 1Q18 2Q18 3Q18 4Q18 12
Slide 13: Transfer Performance 2018: International Transfers were All Time High
Transfer Performance 2018: International Transfers were All Time High 6.3 Bn 300 % GROWTH YoY 966 94 19 UNITS % GROWTH % YoY INCREASING 19% INTERNATIONAL TRANSFERS 10% 81 % 2015 2016 2017 2018 13
Slide 14: Transfer Performance 2018: Our Customers were Cashed Up
Transfer Performance 2018: Our Customers were Cashed Up 43 100% % 90% CASH 80% FY2018 70% 60% 24 %DOMESTIC 50% 19 %INTERNATIONAL 40% 30% 20% 57 % MORTGAGE 10% FY2018 0% 2015 2016 2017 2018 14
Slide 15: Presales Performance 2018: International Sales were Remaining Strong
Presales Performance 2018: International Sales were Remaining Strong 31,483 MILLION BAHT ALL TIME HIGH INTERNATIONAL SALES 32 % 10,119 MILLION BAHT 9,775 10,119 68 % 21,364 MILLION BAHT 3,111 1,730 1,235 1,256 2013 2014 2015 2016 2017 2018 15
Slide 16: Presales Performance 2018
Presales Performance 2018 31,483 MILLION BAHT 11 % HOUSING 89 % CONDOMINIUM PRESALES 1Q18A 2Q18 3Q18 4Q18 2018 CONDOMINIUM 5,848 9,793 7,038 5,193 27,872 HOUSING 834 825 1,144 807 3,611 TOTAL (MILLION BAHT) 6,685 10,618 8,182 6,000 31,483 16
Slide 17: Launch Performance 2018: All 12 Projects had been Launched as Promised
Launch Performance 2018: All 12 Projects had been Launched as Promised 26,756 MILLION BAHT 12 PROJECTS 82 % CONDOMINIUM 18 Tick tock cycles 42,450 % HOUSING 26,756 2013 2014 2015 2016 2017 2018 17
Slide 18: Launch Performance 2018: Almost 80% of Condo Launches were Value to Mid-end
Launch Performance 2018: Almost 80% of Condo Launches were Value to Mid-end 21,854 MILLION BAHT 6 CONDO PROJECTS 22 % MID TO UPPER MID-END SELLING PRICES ABOVE 150,000 BAHT/SQM 78 % VALUE TO MID-END SELLING PRICES BELOW 150,000 BAHT/SQM 4,902 MILLION BAHT 6 HOUSING PROJECTS 65 % MID TO UPPER MID-END
Slide 19: Launch Performance 2018: All 12 Projects had been Launched as Promised
Launch Performance 2018: All 12 Projects had been Launched as Promised 26,756 MILLION BAHT 12 PROJECTS 5 JOINT VENTURE PROJECTS NO. LAUNCH BEGINS 1Q18 2Q18 3Q18 4Q18 2018 Condo 4,325 6,822 5,123 5,582 21,854 Housing - 401 3,684 818 4,902 TOTAL (MILLION BAHT) 4,325 7,223 8,807 6,400 26,756 NO. OF CON
Slide 20: Backlog: Almost 60% of 2019 Transfers were Secured
Backlog: Almost 60% of 2019 Transfers were Secured Backlog 59% of 2019 transfers 41 Bn Baht secured by backlog 21,284 MILLION BAHT 9,432 13,148 MILLION BAHT 7,046 6,630 MILLION BAHT 8,728 2,063 6,101 3,667 2,703 420 - 901 2019 2020 2021 Ananda's Backlog - Condo Ananda's Backlog Gn JV - Condo Partner
Slide 21: Condo Sales Rate: 90% of Unsold Inventories Cleared within 3 Years
Condo Sales Rate: 90% of Unsold Inventories Cleared within 3 Years of Launch Condo 90 % Inventory Sold Within 3 Years of launch 16,521 10,503 19,779 11,403 4,149 3,523 Unit: M Baht 1 year 2 years 3 years Backlog Unsold Inventories Updated: Dec 31, 2018 21
Slide 22: 2018 Summary: Business Growth with Discipline
2018 Summary: Business Growth with Discipline ❖ All time high transfers ❖ Transfers grew 120% YoY ❖ All time high international transfers ❖ Net profit grew 82% YoY ❖ Net profit margin rose from 10% to 23% YoY ❖ All time high international sales ❖ Net IBDE ratio including JV at 1.1 below bond ❖ All t
Slide 23: 2019 Business Plan
2019 BUSINESS PLAN How can we sustain the growth
Slide 24: 2019 Business Plan: Our Capital Cycles Drove Higher Launches
2019 Business Plan: Our Capital Cycles Drove Higher Launches LAUNCHES PRESALES TRANSFERS 42 14 9 % % % GROWTH GROWTH GROWTH 2018 2018 2018 36,000 36,000 38,000 33,171 31,483 26,756 2013 2014 2015 2016 2017 2018 2019 2013 2014 2015 2016 2017 2018 2019 2013 2014 2015 2016 2017 2018 2019 24
Slide 25: Launch Target 2019: Going Forward in Full Force where the Opportunities are
Launch Target 2019: Going Forward in Full Force where the Opportunities are 38,000 MILLION BAHT 92 % CONDOMINIUM 42 % GROWTH 8 PROJECTS 7 FROM 2018 JOINT VENTURE 10 PROJECTS PROJECTS 97% CONDO LAUNCH 8 38,000 % 26,756 HOUSING 2 PROJECTS 2013 2014 2015 2016 2017 2018 2019 25
Slide 26: Launch Target 2019: Move toward Upper Mid-end Segment for Better Prospects
Launch Target 2019: Move toward Upper Mid-end Segment for Better Prospects 35,260 MILLION BAHT 8 CONDO PROJECTS 100% SECURED CONDO LOCATIONS 87 % MID TO UPPER MID-END SELLING PRICES ABOVE 150,000 BAHT/SQM 13 % VALUE TO MID-END SELLING PRICES BELOW 150,000 BAHT/SQM 2,740 MILLION BAHT 2 HOUSING PROJEC
Slide 27: Launch Target 2019: Going Forward in Full Force where the Opportunities are
Launch Target 2019: Going Forward in Full Force where the Opportunities are 38,000 MILLION BAHT 10 PROJECTS 7 JOINT VENTURE PROJECTS NO. LAUNCH BEGINS 1Q19 2Q19 3Q19 4Q19 2019 Condo - 10,477 16,346 8,437 35,260 Housing - 2,740 - - 2,740 TOTAL (MILLION BAHT) - 13,217 16,346 8,437 38,000 NO. OF CONDO
Slide 28: Presales Target 2019: Maintain High Level of Presales for Future Transfers
Presales Target 2019: Maintain High Level of Presales for Future Transfers 36,000 MILLION BAHT 14 % GROWTH FROM 2018 11 % HOUSING 36,000 31,483 2013 2014 2015 2016 2017 2018 2019 89 % CONDOMINIUM PRESALES 1Q19 2Q19 3Q19 4Q19 2019 CONDOMINIUM 3,263 6,334 11,224 11,305 32,126 HOUSING 776 921 1,068 1,1
Slide 29: Transfer Target 2019: Target a Moderate Growth but yet with Another High Record
Transfer Target 2019: Target a Moderate Growth but yet with Another High Record 90 % CONDOMINIUM 36,000 MILLION BAHT 9 % GROWTH 2018 10 % HOUSING Transfer 1Q19 2Q19 3Q19 4Q19 2019 Condo 410 1,604 2,486 1,483 5,983 Housing 540 716 1,086 1,318 3,660 Ananda F/S 950 2,320 3,572 2,801 9,643 Ananda Share
Slide 30: Transfer Target 2019: 10 Condo Projects will be ready to Transfer within This Year
Transfer Target 2019: 10 Condo Projects will be ready to Transfer within This Year 40 10 % NEW CONDO PROJECTS OF TRANSFERS THAT COMPLETE THIS COMING FROM YEAR Transfer Begins 1Q19 2Q19 3Q19 4Q19 NEW PROJECT AT SUKHUMVIT 31 30
Slide 31: Number One in JV in 2019: We Continue to Build a Stronger Partnership with MF
Number One in JV in 2019: We Continue to Build a Stronger Partnership with MF. 157,600 MILLION BAHT 38 PROJECTS 6 AS OF DECEMBER 2019 SERVICED APARTMENTS 32 CONDO PROJECTS 2013 2014 2015 2016 2017 2018 2019 Year 1 3 5 6 6 9 8 6,800 19,200 19,600 24,200 25,200 33,000 29,600 Project GDV 31
Slide 32: Recurring Income: Continued Growth of Our Portfolio
Recurring Income: Continued Growth of Our Portfolio ASCOTT ASCOTT EMBASSY SOMERSET LYF NEW PROJECT IN THONGLOR SATHORN RAMA 9 SUKHUMVIT 8 PATTAYA 32
Slide 33: Recurring Income: Accumulating Revenue Contribution
Recurring Income: Accumulating Revenue Contribution INVESTMENT VALUE REVENUE >1,100 1,800+ MILLION BAHT PER ANNUM MILLION BAHT 2022 Continuing expansion in key destinations through diversified product classes 2017 First Venture into Serviced Apartments Business 33
Slide 34: Financial Target in 2019: Our Capital Cycles Drove Higher Launches
Financial Target in 2019: Our Capital Cycles Drove Higher Launches 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 34,000-38,000 Launches (M Baht) 34,213 14,954 34,828 20,693 42,450 26,756 36,000-40
Slide 35: Key major risks to Thailand real estate market
Key major risks to Thailand real estate market 1 2 3 Macro Prudential Slowdown of Interest Rate Hike Policy Chinese demand & Household Debt Effective 1 Apr 19 onwards, LTV Negative growth rate of Uptrend of interest rate which will be decreased to 80% for; Chinese demand impacted 2019 policy rate is
Slide 36: Balance Sheet: Business Growth with Discipline
Balance Sheet: Business Growth with Discipline Bond Covenants 2.5 Times 1.5 1.2 1 0.5 0 2013 2014 2015 2016 2017 2018 2019 Year Note : Net Interest bearing debt including JV debt to equity 36
Slide 37: Expanding Strategic Partnership
EXPANDING STRATEGIC PARTNERSHIP X 37
Slide 38: 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 39: Current Projects As Of December 2018
Current Projects As Of December 2018 Unsold Value Backlog Updated: Dec 31, 2018 Project Launched Type %Net Sold Inventory %Transfer (M Baht) (M Baht) (M Baht) ADO: Atoll (Housing) Feb-13 Housing 3,221 38.6% 11 1,978 38.2% AD18: Ashton Asoke (JV) Sep-14 Condo 6,726 73.0% 667 1,813 63.1% AD17: Ideo Q
Slide 40: Current Projects As Of December 2018 (Cont.)
Current Projects As Of December 2018 (Cont.) Unsold Value % Net Backlog Project Launched Type Inventory %Transfer Updated: Dec 31, 2018 (M Baht) Sold (M Baht) (M Baht) AD20: Ideo Q Sukhumvit 36 (JV) Jun-17 Condo 4,319 55.9% 2,416 1,903 - AD19: Ideo New Rama 9 (JV) Jun-17 Condo 3,002 72.0% 2,162 840
Slide 41: Supply and Sales Rate Trend: Location is still a Key to Inventory Liquidation
Supply and Sales Rate Trend: Location is still a Key to Inventory Liquidation Focus on condo nearby mass transit Price 1-3 M : 50,000 units Distance < 300M. 25% 10,000 U, 25% Distance > 300M. 40,000 U, 75% Price >3 M : 31,000 units Distance < 300M. 11,000 U, 35% 35% Distance > 300M. 20,000 U, 65% *U
Slide 42: Initial Take Up Rate: Location is still a Key to Inventory Liquidation
Initial Take Up Rate: Location is still a Key to Inventory Liquidation 64% 59% 58% 53% 51% 55% 47% 40% 36% 37% 35% 22% 0-300 m. > 1,000 m. 2013 2014 2015 2016 2017 2018 Source : AREA 42
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