powerpoint presentation · residential portfolio 51% own 51% own 5 projects; value bt 23,031mn 100%...

© Singha Estate Public Company Limited© Singha Estate Public Company Limited

2018Opportunity day

26 March 2019

YEAR-ENDED RESULTS

© Singha Estate Public Company Limited

The information contained in this material has been prepared by Singha Estate Public Company Limited (“S” or “Singha Estate”) solely for information purpose and does not constitute an offer or invitation to sell or the solicitation of an offer or invitation to purchase or subscribe for shares in Singha Estate.

Some statements made in this material are forward‐looking statements. These statements typically contain words such as "expects" and "anticipates" and words of similar import. Any statement in these materials that is not a statement of historical fact is a forward-looking statement that involves various risks and uncertainties. These include statements with respect to our corporate plans, strategies, and beliefs. The statements are based on our management’s assumptions and beliefs in light of the information currently available to us. These assumptions involve risks and uncertainties which may cause the actual results, performance, or achievements to be materially different from any future results, performance, or achievements expressed or implied by such forward‐looking statements.

None of the future projections, expectations, estimates or prospects in this presentation should be taken as forecasts or promises nor should they be taken as implying any indication, assurance or guarantee that the assumptions on which such future projections, expectations, estimates or prospects have been prepared are correct or exhaustive or, in the case of the assumptions, fully stated in the presentation. We assume no obligations to update the forward-looking statements contained herein to reflect actual results, changes in assumptions or changes in factors affecting these statements.

Accordingly, no representation or warranty, express or implied, is made or given by or on behalf of Singha Estate or any of its shareholders, directors, officers or employees or any of the Banks (and their shareholders, directors, officers or employees) or any other person as to the accuracy, completeness or fairness of the information or opinions contained in this presentation. None of Singha Estate nor any of its shareholders, directors, officers or employees accepts any liability (in negligence or otherwise) whatsoever for any loss howsoever arising from any use of this presentation or its contents or otherwise arising in connection therewith. Individual situations and local practices and standards may vary, so viewers and others utilizing information contained within a presentation are free to adopt differing standards and approaches as they see fit. Products and names mentioned in materials or presentations are the property of their respective owners and the mention of them does not constitute an endorsement by Singha Estate. The information contained in this presentation is only current as of the date its date. In giving this presentation, neither Singha Estate nor its respective advisers and/or agents undertake any obligation to provide the recipient with access to any additional information or to update this presentation or any additional information or to correct any inaccuracies in any such information which may become apparent. You must make your own assessment of the relevance, accuracy and adequacy of the information contained in this presentation and must make such independent investigation as you may consider necessary or appropriate for such purpose. The presentation should not be construed as legal, tax, investment or other advice.

DISCLAIMER


AGENDA S OVERVIEW

KEY BUSINESS SEGMENT ❑ Commercial Business❑ Residential Business❑ Hospitality Business

Development properties and new projectFINANCIAL PERFORMANCE


S Overview

4


370

2,1493,233

5,8587,539

2014 2015 2016 2017 2018

S KEY MILESTONES

With an ambition to be a market leader across its key real estate sectors, S has continuously expanded through acquisition of income-generating assets, investments and partnerships

Acquired Suntowers(~61,000 sq.m. NLA)

2014 2015 2016 2017 2018

Acquired Phi Phi Island Village Beach Resort (156 keys)

Incorporation of Singha Estate

Invested 51% in Nirvana Development

JV Invested in 26 hotels in UK (2,883 keys)

JV invested in 3 additional hotels in UK (229 keys)

JV with Hongkong Land to develop ESSE36

Invested 52% in Nirvana Daii PCL

Invested in phase 1 of Crossroads in Maldives

Invested in 6 Outrigger hotels (859 keys)

11,288

25,308 30,59240,910

58,930

2014 2015 2016 2017 2018

Total revenue (Bt.mn)Total assets (Bt.mn)

Filing of SPRIME -Suntowers

JV with Daiwa to develop EYSE43

Strong growth in assets and revenues through the smart acquisitions

5

© Singha Estate Public Company Limited 6

Open CROSSROADS at Maldives : in 2019

Hard Rock Hotel MaldivesSAii Lagoon Maldives, Curio Collection by Hilton

THE MARINA @ CROSSROADS

Transfer 3 Condominiums & 1 Residential Project Full year Revenue from Singha Complex

Full year Revenue from 6 Outrigger Hotels

OUTRIGGER Fiji Beach

OUTRIGGER Mauritius

Fiji Castaway IslandOUTRIGGER Koh Samui

OUTRIGGER Laguna Phuket

Outrigger Fiji Beach Resort

Outrigger Laguna Phuket Beach Resort

Castaway Island

OUTRIGGER Konotta Maldives

2019 : The Harvesting Year of Singha Estate

New Projects in 2019Strong Revenue Stream in 2019

Implement uplift projects in Outrigger Hotels

Launch new luxury condominium

Begin construction new office building


Key Business Segments

7


KEY BUSINESS SEGMENTS

S’s business currently spans across 3 major sectors of property business:

Moving toward the premier lifestyle developer

CommercialHospitality

34% 22% 44%

53% 34% 9%

Residential


Santiburi Koh

Samui

No. of keys: 96

Phi Phi Island Village

Beach Resort

No. of keys: 201

29 hotels in UK

Jupiter Hotels

26 hotels

No. of keys: 2,886

The Hotelier

Group

3 hotels

No. of keys: 229

OUTRIGGER

Koh Samui

No. of keys: 52

OUTRIGGER

Laguna Phuket

No. of keys: 255

OUTRIGGER

Fiji Beach

No. of keys: 253

Fiji Castaway

Island

No. of keys: 65OUTRIGGER Mauritius

No. of keys: 181

OUTRIGGER

Konotta Maldives

No. of keys: 53

HARD ROCK HOTEL

MALDIVES

No. of keys:178

SAii Lagoon Maldives,

Curio Collection by

Hilton

No. of keys:198

Hospitality Portfolio :

50%

100%

100%

100%

100%

100%

100%

Total No. of keys 376

Outrigger hotels100% owned and managed JV

37 hotels in 5 countries 4,271 keys (not included CROSSROADS 2 hotels 376 keys)


Residential Portfolio

51% Own

51% Own

5 projects;Value Bt 23,031mn

100% Own

100% Own

100% Own

The ESSE AsokeProject value: Bt.4,900mnTransfer 1 : Q4’2018

The ESSE at Singha ComplexProject value: Bt.4,300mnTransfer 1 : Q3’2019

Santiburi The ResidencesProject value: Bt.5,500mnLaunch: Q3’2018

The ESSE Sukhumvit 36 2

Project value: Bt.6,400mnTransfer 1 : Q3’2020

EYSE Sukhumvit 43 2

Project value: Bt.1,931mnTransfer 1 : Q4’2020

Bangkok

Note: 1. Company estimates and subject to change2. Investment in JV structure (51% economic interest)

Nirvana Daii PCL : 52% OwnNo. of projects: 15Remaining project value: Bt.13,476mnTotal value Bt. 18,485mn

Banyan Tree ResidensesProject value: Bt. 6,575 mn

10


Commercial Portfolio : NLA 176,507 sq.m.

Singha ComplexNLA: 58,174 sq.m.

The LighthouseNLA: 3,201 sq.m.

SuntowersNLA: 61,132 sq.m.

OasisNLA : ~54,000 sq.m.Target open : 2022


Residential Business

12


Residential Business : condominium

The ESSE Asoke

13

The ESSE at Singha Complex The ESSE Sukhumvit 36 EYSE Sukhumvit 43

▪ 55 storeys 419 units▪ Project value Bt.4,900mn▪ Approx. Bt.218,000 /sq.m▪ Sales progress 82% ▪ Transfer progress 29%(of units

sold)*Relaunched in Q1’19

▪ 39 storeys 319 units▪ Project value Bt.4,347mn▪ Approx. Bt.266,000 /sq.m▪ Sales progress 92%▪ Transfer Q3’2019▪ 74% construction progress

▪ 43 storeys 338 units▪ Project value Bt.6,485mn ▪ Approx. Bt.336,000 /sq.m. ▪ Sales progress 62% ▪ Transfer Q3’2020 (tentative)▪ 10% construction progress▪ *JV with Hongkong Land

▪ 7 storeys 107 units▪ Project value Bt.2,063mn ▪ Approx. Bt.239,000 /sq.m▪ Sales progress 45%▪ Transfer Q4’2020 (tentative)▪ EIA in process▪ *JV with Daiwa House Group

Start transferring of the ESSE Asoke – The first S luxury condominium project


Residential Business : Single-detached house

▪ Ultra-luxury single-detached house

▪ Project value Approx. Bt.5,500mn

▪ 26 units

▪ Sales progress 12% (3 units)

▪ Construction progress : 100% for clubhouse, villa 1, villa 2, landscape, infrastructure , 67% for Villa 12

14

Santiburi The Residences


Commercial Business

15


Suntowers

Commercial Business

Location : Asoke – Phetchaburi

Grand opening date : 12 December 2018

Singha Complex

Total (sq.m)Closed Deal

sq.m %

Office 52,982 42,727 85%2

Retail 4,317 3,847 89%

Key stats FY 2017 FY 2018 Q4'17 Q3’18 Q4'18

Net leasable area 1 (sq.m) 61,383 61,165 61,304 61,132 61,159

Occupancy rate (%) 96% 94% 95% 93% 92%

Rent rate (Baht/sq.m./month) 547 566 551 574 577

Rental growth (yoy%) +7% +3% +5% +4% +5%

Anchortenants:

S, SAM, Ericsson, Fuji Xerox, Technip, Symphony, Toyota Leasing

Anchor tenants:

Boonrawd, Shopee, Unicharm

Note: 1. NLA includes office and retail space Note 2 Including BRB office


Hospitality Business

17


Hospitality Business : 100% owned and managed

18

▪ 5-star beachfront resort

▪ 19 exclusive modern-style pool villas were completed in May 2018 (a total

room of 96 keys)

Santiburi Koh Samui Phi Phi Island Village Beach Resort

▪ 4-star luxury beach resort

▪ Performance was affected from the Phuket boat incident in July

Key stats 2017 2018 4Q17 3Q18 4Q18

No. of rooms 77 90 77 96 96

Occupancy rate 71% 61% 54% 64% 45%

RevPar (Baht) 9,133 7,933 6,816 8,329 4,975

RevPar growth (yoy%) (3%) (11%) (14%) (9%) (15%)

Key stats 2017 2018 4Q17 3Q18 4Q18

No. of rooms 201 201 201 201 201

Occupancy rate 85% 83% 81% 77% 84%

RevPar (Baht) 5,650 5,743 8,327 3,659 6,123

RevPar growth (yoy%) 5% 2% 6% (7%) (6%)


Hospitality Business : 100% owned; managed under HMA

6 Outrigger-branded hotels

Outrigger Fiji Beach Resort

Outrigger Laguna Phuket Beach Resort

Outrigger Mauritius Beach Resort

Outrigger Koh Samui Beach Resort

Outrigger Konotta Maldives Resort

Castaway Island

• Acquired 6 hotels in 4 countries in Jun 18

• Diversified location with different peak

season

• Quarter 4, Phuket, Maldives and Mauritius

were under peak season period.

Key stats 3Q18 4Q18

No. of hotels 6 6

No. of rooms 859 859

Occupancy rate (%) 81% 82%

Fiji Beach Castaway Phuket Samui Mauritius Maldives

No. of rooms 253 65 255 52 181 53

Occupancy rate(%) 85% 89% 75% 77% 88% 68%

RevPar (THB) 4,443 12,847 3,317 3,541 4,898 8,505

Fiji Thailand

Maldives Mauritius

July – Dec 18 performance specific to each hotel

*HMA=Hotel Management Agreement


Hospitality Business : 50% owned

29 Hotel Investment in UK

▪ From a total of 29 hotels with 3,115 keys in hotel

investment in UK through 50:50 joint venture

structure

▪ Overall occupancy rate and operating profit is quite

steady.Manchester

Leicester

Brighton

Key stats 2017 2018 4Q17 3Q18 4Q18

No. of rooms 3,112 3,115 3,112 3,115 3,115

Occupancy rate 72% 71% 69% 79% 69%

RevPar (GBP) 48 48 45 57 45

RevPar growth (yoy%) 5% 0% 4% (1%) (1%)


Development and upcoming project

21


Island I (1a) – The MarinaSite Area : 17 Ha Facilities : restaurant, Café de Mar, Hard Rock Café, cultural center, multipurpose hall, marina center

Island I (1b) – SAii Lagoon Maldives,Curio Collection by HiltonSite Area : 4.4 Ha Keys : 198

Island 2 - Hard Rock Hotel MaldivesSite Area : 6 Ha Keys : 178

CROSSROADS ProjectThe first integrated tourist facilities in Maldives

23


SAii Lagoon Maldives, Curio Collection by Hilton HARD ROCK HOTEL

Progress Updates

Hotel


Progress Updates

Villas

Hard Rock – Reception area and Pier

Hard Rock - Water Villa

SAii Lagoon Maldives - Beach Villa

SAii Lagoon Maldives - Water Villa

25


Toilet 2 + Clinic : Roof structure + primer + internal wall

Link Bridge between Marina and Hard Rock Hotel

Kid Club - Structure work (By Alia)

Unit 01: Terrace Civil work

Progress Updates

Marina


Financial Performance

27


53%

34%

9%

2% 2%

2018 Revenues

Residential

Hotel

Commercial

Construction materials

Others

“S” 2018 revenue : driven by residential and hospitality business

2,388

3,974

2017 2018

Residential

1,074

2,576

2017 2018

Hotel

2,114

674

2017 2018

Commercial66%

140%(68%)

• 2018 residential revenue increased 66% YoY resulting from the ESSE Asoke.

• Hospitality business growth was supported by revenuefrom Outrigger portfolio 6 hotels.

• Commercial revenue decreased by 68% YoY resulted from Q4’17 the company recognized one-time revenue for upfront lease at Singha complex.

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Total Revenue 7,539 MB


Key Financial Performance

CONSOLIDATED FINANCIAL HIGHLIGHTS

(Unit: THB Million) FY2017 FY2018 % YoY

Revenues 5,858 7,539 29%

Gross profit 2,434 3,249 33%

EBIT 1,228 2,016 64%

Profit (loss) for the period before NCI 631 1,436 128%

Non-controlling interests (59) (149) 152%

Net profit (loss) after NCI 572 1,287 125%

EBITDA 1,485 2,524 70%

Performance without non-operating items

Normalized EBITDA 754 1,659 120%

Normalized Profit for the period after NCI 20 422 1,983%

Key driver for growth in 2018:▪ Transfer ownership the ESSE Asoke▪ Acquire 6 Outrigger hotels▪ Transfer ownership Banyan Tree Residences

Non-operating items referred to :▪ Gain on exchange rate ▪ Gain from fair value adjustment on

investment properties▪ Professional fees, land transfer fees, etc.▪ Sales & marketing of residential projects

29


Key Expenses

547

981

2017

2018

Selling Expense

1,006

1,599

2017

2018

Administrative expenses

369

662

2017

2018

Finance costs

In 2018, selling expenses was 981 million baht, increased by 79% YoY, because of an increase of

advertising expense of residential and hospitality business.

Administrative expenses in 2018 was 1,599 million baht increased by 59% YoY mainly due to higher

personnel expenses reflecting increased number of employees and administration of the Outrigger

hotel portfolio.

In 2018, the Company incurred 662 million baht of finance costs, increased by 79% YoY, reflected anincreasing in long-term loan and acquisition loan for Outrigger hotels.

30


Financial Position : Asset

7%

25%

4%

29%

23%

12%

2018 Total Assets

Cash and cash equivalent

Inventories

Other current asset

Net PPE

Investment asset

Other non current asset

0

5,000

10,000

15,000

20,000

Cash and cash

equivalent

Inventories Net PPE Investment asset

Asset Balance

2017 2018

As at 31 December 2018, the total assets were 58,930 million Baht, increased by 44% from last year. The incremental assets mainly came from Outrigger hotels and Crossroads Project Phase I, inventories and cost of property development and development of Singha Complex.

31


13%

11%

3%

69%

4%

2018 Total Liabilities

Payable

Short-term debt

Other current liabilities

Long-term debt

Other non current liabilities

Financial Position : Capital Structure

Total liabilities were 38,837 million Baht, increased by 78% from last year, the debt financing is essential to support new project development

and acquisitions. Thus, interest-bearing debts to equity from 0.85x to 1.53x as well as net interest-bearing debts to equity from 0.41x to

1.33x. However, the company is still relatively over leverage with the plan to rebalance the capital structure.

0.740.85

1.53

0.6

0.41

1.33

2016 2017 2018

Debt ratio

IBD/E Net D/E IBD/E

32


Investor Relations

[email protected]

Tel : (+66) 2050 5555 Website : www.singhaestate.co.th

Thank You


powerpoint presentation · residential portfolio 51% own 51% own 5 projects; value bt 23,031mn 100%...

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