“2016 Year of Net Profit Growth - listed...
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1 “2016 Year of Net Profit Growth ” Opportunity Day June 9, 2016 Stock Exchange of Thailand Building
Transcript of “2016 Year of Net Profit Growth - listed...
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“2016 Year of Net Profit Growth”
Opportunity Day
June 9, 2016
Stock Exchange of Thailand Building
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The information (“Confidential Information”) contained in this presentation is strictly confidential and is provided by Areeya Property
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 by any other party or for any other purpose; (ii) copied, photocopied, duplicated or otherwise reproduced in any form or by any
means; or (iii) redistributed, passed on or otherwise disseminated, to any other person either in your organization or elsewhere, without
the prior written consent of the Company. By attending this presentation, participants agree not to remove this document, or any materials
provided in connection herewith, from the conference room where such documents are provided without express consent from the
Company. Although care has been taken to ensure that the Confidential Information in this presentation is accurate, and that the opinions
expressed are fair and reasonable, the Confidential Information is subject to change without notice, its accuracy is not guaranteed, has not
been independently verified and it may not contain all material information concerning the Company. None of the Company, or any of their
respective members, directors, officers, employees or affiliates nor any other person 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.
This presentation is for information purposes only and does not constitute or form part of any offer or invitation for sale or subscription of
or solicitation or invitation of any offer to or recommendation to buy or subscribe for any securities, nor shall it or any part of it form the
basis of or be relied on in connection with any contract, commitment or investment decision in relation thereto in Thailand, United States
or any other jurisdiction. Any such purchase should be made solely on the basis of the information contained in the announcements to the
Stock Exchange of Thailand relating to such securities. No reliance may be placed for any purposes whatsoever on the information set forth
in this presentation or on its completeness.
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. You are cautioned not to place undue reliance on these forward looking statements. No assurance can
be given that future events will occur, that projections will be achieved, or that the Company's assumptions are correct. Such
forward‐looking statements are not guarantees of future performance and accordingly, the actual results, financial condition, performance or achievements of the Company may differ materially from those forecasted and projected or in the forward‐looking statements.
Disclaimer
Agenda
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Company Introduction
Business Highlights
Financial Highlights
Future Outlook
Q & A
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Company Vision
“Home” is a private space, away from work. It is a place of love and understanding where we can be totally comfortable.
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Company Mission
“Creative Home” “Good Care” “Happiness Residents”
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Key P
rofi
le
*As of May 30, 2016
Areeya at Glance
A leader in residential development business in Thailand.
A leader in technologies and innovation in the field of engineering, construction and operation.
• Registered Capital 1,200 Million baht (Paid-up Capital 980 Million baht)
• Market Capitalization 6,370 Million baht*
• First Trading Day on April 1, 2004
• Dividend Policy ~ 40% of the Company’s net profit
Key Milestones
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Started to deliver Condominium
Brand Awareness for product champion
Increase Market Share
Increase Net Profit
Sustainable Growth Revenue & Profit
Sustainable Growth Revenue & Profit
2015 2016 2017 2018
Low-rise High-rise
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Residential
Product & Service
Type of Product :
The Color 1 Parking The Village Areeya Como
The c Single-Detached HouseTownhome/Semi-Detached
The Color The Village
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Product & Service
Type of Product : Low-Rise Project : Product Champion
Areeya ComoThe Color Premium
Townhome Townhome
The Color Premium 2 Parking
A Space I.D. A Space ME Bangna A Space ME Sukhumvit 77Soontareeya Residence
Luxury A Space I.D.
A Space ME Rattanatibate
A Space Me
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Areeya Chalermnit Sukhumvit 53
Product & Service
Type of Product : High-Rise Project : Product Champion
Kanjanapisak –
Ratchapruek ZoneThe Colors /The Village The Village Cottage
ASPME Rattanatibete
Location
SoontareeyaResidence
Wongwaen –
Ratchapruek Zone The Colors/The Village/Como
A Space ID
Donmuang –
Songprapa ZoneThe Colors / SDH
Bangna Zone
ASPME Bangna/ The
colors/
The Village/ Como
Rangsit-Lumlukkha
Klong4The Colors
Wongwaen –
Ramintran ZoneThe Colors/Como
ASP
ME
SKV
77
AreeyaChalermnit
SKV 53
12Source: http://www.focus-economics.com
The Thai economy gained strength in the first quarter of this year and GDP expanded at the fastest rate since Q1 2013
Significant acceleration in government spending due to the government’s aggressive stimulus measures
An increase in exports. (Q4: -3.3% YoY; Q1: +5.1% YoY) due to a pick-up in gold and military equipment exports.
An decrease in imports. 4.8% in the first quarter, which was a deterioration over the 1.2% decrease seen in the previous quarter.
Government spending accelerated from a 4.8% increase in 4Q15 to an 8.0% rise in 1Q16 amid an aggressive fiscal stimulus
High household debt and adverse weather conditions decelerated to a 2.4% growth in the first quarter (Q4: +2.6% yoy).
Fixed investment also disappointed in Q1 and grew only 4.7%, which was half of the previous quarter’s 9.4% increase.
“Moreover, The Central Bank expects the economy (GDP) to expand 3.1% in 2016 and 3.3% in 2017.”
Economic Overview
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The property sector is expected to remain stable and reach a balanced point this year after growing in the first four months, boosted by property tax incentives that ended on April 28.
“The property market will have a stable or gradual recovery with growth no more than 5%as consumer confident weak.”In the first quarter (1Q16) Property Market rose by 8% in Greater Bangkok and 11% in six key provinces by: New residential supply being launched until the end of the year (250 billion;88 Condo, 92
Townhome; 74 Single-house ) New mass transit lines including the Purple Line and many lines for which the government
will open bidding for stimulate economy. Low-rise housing segment in the provinces would continue strongly but condos would remain
poor due to drought and declining prices of farm products
For Developers directing their focus towards marketing to help release finished unit inventories, For Investors and homebuyers, it's a good time to make a decision because of attractive campaigns and discountsFor short-term speculators , it's not the right time as the economy is still sluggish.
Industry Overview
Source: http://property.bangkokpost.com
14Source: www.nationmultimedia.com/business
Government Policy
“Pracharath Housing” program will help property market by;
Increase demand for as many as 33,000-40,000 homes priced below THB1.5 million each and homebuyers may require a mortgage of THB1 million or more.
Residential property developers will be able to release homes in their inventories costing below THB1.5 million each.
Some points need to concerned for homebuyers No repayment capability The High debt-to-service ratio A long-time debt burden of about 30 years.
Agenda
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Company Introduction
Business Highlights
Financial Highlights
Future Outlook
Q & A
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Fin
anci
al
• Customer’s credit management• Cash Management• GP Ratio, NP Ratio and D/E ratio
• Brand Recognize • After Sales Service• Community Relationship• Corporate Social Responsibility
• Target Revenue 7,000 Million Baht (Growth 30%) • Budget control• Cost management• Inventory management• High Inventory Turnover• People efficiency
Business Highlights 2016
“Growth of Net Profit”O
per
atio
nD
evel
op
men
t
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Corporate Social Responsibility
Special projects : Child Friendly SpaceObjective : Provide a learning center for children and safe construction area.
Meeting the parents To agreement on bringing children to the Children's Learning Center.
Storage children of all construction 9 areas.
Selected area “ HathairajProject”
Plan and coordinate with Project manager
Coordinating partners (Foundation for Child Development) to join the event. Meeting with parents of children who
labor for their involvement in the establishment of children's centers
Training event for volunteers in child care.
Visit the Center for Children at “RukThai” Foundation.
Take activities and teach children
Corporate Social Responsibility
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Heart@home : Child and Senior activities / Family activities with Healthy
Child activities
Senior activities
“สงูวยั มีสขุ”Areeya Family Healthy
Family activities “อร่อยฟิน กินแล้วเฟิรม์”
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• Target Income from High Rise Sales2015 = 762 MB. (Growth 162%)
• Target New Projects Launch2015 = 4,224 MB. (Growth 386%)
Business Highlights 2016
• Backlog (as of Mar 31, 2016)
20,515 MB
2,335 MB
• Target Income from Low Rise Sales2015 = 3,426 MB. (Growth 45%)
5,000 MB
2,000 MB
Business Highlights (Recognized income 2016)
The Village - Bangna Wongwaen
The Colors Rungsit
The Colors Premium Bangna - Wongwaen
Areeya Como Bangna Wongwaen
The Colors Bangna - Wongwaen
Areeya Donmuang-songprapa
Metro Kaset
Daily by Areeya
The Village Cottage Kanjanapisek-Ratchapruek
The Village Kanjanapisek-Ratchapruek
The Colors Premium Kanjanapisek-Ratchapruek
The Colors Kanjanapisek-Ratchapruek
Areeya Como Wongwaen Ramintra
The Colors Premium Wongwean-Ratchapruek
The Colors Premium Wongwaen Ramintra
The Colors Wongwaen Ramintra
Areeya Como Wongwean-Ratchapruek
The Colors Wongwean-Ratchapruek
The Colors Rangsit Klong 4
The Colors Premium Kanjanapisek-Ratchapruek 2
The Village Kanjanapisek-Ratchapruek 2
The Colors Kanjanapisek-Ratchapruek 2
The Village - Bangna Wongwaen 2
The Place Kanjanapisek-Ratchapruek
Quarter
Pro
ject
s
RECOGNIZED INCOME 2016
12 Projects
15 Projects
22 Projects
18 Projects
4Q15 1Q16 2Q16 3Q16 4Q16
Low-rise
Business Highlights (Recognized income 2016)
A Space I.D. Asoke Ratchada
A Space ME Sukhumvit77 (Phase I)
A Space ME Bangna
Quarter
Pro
ject
s
RECOGNIZED INCOME 2016
High-rise
4Q15 1Q16 2Q16 3Q16 4Q16
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Business Highlights (Areeya New Launched Projects 2016)
Project Name Units Value (MB) Launch Finish
1. The Colors Premium Kanjanapisek-Ratchapruek 2 115 240 2Q16 4Q17
2. Areeya Como Wongwean-Ratchapruek 115 400 2Q16 3Q18
3. The Colors Premium Wongwean-Ratchapruek 265 615 2Q16 4Q18
4. The Colors Wongwean-Ratchapruek 225 470 2Q16 3Q18
5. The Village Bangna-Wongwean 2 167 683 2Q16 2Q18
6. The Village Kanjanapisek-Ratchapruek 2 128 440 3Q16 Q18
7. The Colors Kanjanapisek-Ratchapruek 2 215 486 3Q16 4Q18
8. The Colors Rangsit Klong 4 349 900 3Q16 2Q18
9. The Place Kanjanapisek-Ratchaprue 323 481 4Q16 1Q19
10. The AVA Resident 98 2,450 3Q16 4Q19
11. Chalermnit By Areeya 125 1,350 4Q16 3Q18
12. Soontreeya 308 12,000 4Q16 2Q19
Total 2,433 20,515
Total 12 Projects with total value of 20,515 MB
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Business Highlights (Areeya New Launched Projects 2016)
CHALERMNIT BY AREEYA
S O O N T A R E E Y A R E S I D E N C E
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Business Highlights (Areeya New Launched Projects 2016)
CHALERMNIT BY AREEYA
Agenda
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Company Introduction
Business Highlights
Financial Highlights
Future Outlook
Q & A
Financial Highlights
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Total Sales
1,353
775
1,132
0
200
400
600
800
1,000
1,200
1,400
1,600
4Q2015 1Q2015 1Q2016
MB.
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Revenue by Product
-
200
400
600
800
1,000
1,200
1,400
4Q2015 1Q2015 1Q2016
--
101 95 27
398
7
205
854
672
900
Single Detached House
Condominium
Townhome
MB.Total 1,368
Total 784
Total 1,147
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Gross Profit MB.
247
410 415
312 337
31.91 31.43
21.0323.05
29.76
0
15
30
0
50
100
150
200
250
300
350
400
450
1Q2015 2Q2015 3Q2015 4Q2015 1Q2016
Gross Profit % GP
%
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S&A Expenses
95
141
171
128
95 83
120 104
125 133
51 55 38 22 46
12%
11%
9%
9%
8%
11%
9%
5%
9%
11%
6%
4%
2%2%
4%
0%
2%
4%
6%
8%
10%
12%
-
20
40
60
80
100
120
140
160
180
1Q2015 2Q2015 3Q2015 4Q2015 1Q2016Selling Exp. Administrative Exp. Fin Exp. % Selling Exp. % Admin Exp. % Fin Exp.
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Net Profit
MB.
24
76
99
18
63 3.02
5.79
4.99
1.31
5.46
0
1
2
3
4
5
6
0
20
40
60
80
100
120
1Q2015 2Q20015 3Q2015 4Q2015 1Q2016
Net Profit % NP
%
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EPS
Baht
0.02
0.04
0.22
0.06
0
0.05
0.1
0.15
0.2
0.25
2013 2014 2015 1Q2016
2013 2014 2015 1Q2016
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D/E Ratio and Net Debt/E Ratio
8,992 11,957 12,861 12,995
6,133
9,083 9,771 9,842
2,859 2,874 3,090 3,153
2.15
3.16 3.16 3.12
1.92
2.82 2.83 2.78
0.00
0.50
1.00
1.50
2.00
2.50
3.00
3.50
-
2,000
4,000
6,000
8,000
10,000
12,000
14,000
2013 2014 2015 1Q2016
Assets Liabilities Shareholder's Equity D/E Ratio ND/E Ratio
MB. Time.
Agenda
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Company Introduction
Business Highlights
Financial Highlights
Future Outlook
Q & A
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High Potential Project
FY2016
18%
80%
13%
53%
33%
1Q2016
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High Potential Project
Agenda
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Company Introduction
Business Highlights
Financial Highlights
Future Outlook
Q & A
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Home is Happiness, pride, a resting space and everything in our lives.
Areeya Property Public Company Limited.
Address : 999 Praditmanutham Rd., Saphansong, Wangthonglang Bangkok 10310
Telephone : 02-798-9999
Fax : 02-798-9990
Website : www.areeya.co.th
