Opportunity Day March 2021
Transcript of Opportunity Day March 2021
WHA Corporation Public Company LimitedOpportunity Day11th March 2021
Q2/2021 Opportunity Day23th August 2021
WHA Corporation Public Company Limited
“Your Ultimate Solution Partner”
DisclaimersWHA Group
The information contained in this presentation is for information purposes only and does not constitute an offer or invitation to sell or the solicitationof an offer or invitation to purchase or subscribe for share in WHA Corporation Public Company Limited (“WHA” and shares in WHA, “shares”) in anyjurisdiction nor should it or any part of it form the basis of, or be relied upon in any connection with, any contract or commitment whatsoever.
In addition, this presentation contains projections and forward-looking statements that reflect the Company's current views with respect to futureevents and financial performance. These views are based on a number of estimates and current assumptions which are subject to business, economicand competitive uncertainties and contingencies as well as various risks and these may change over time and in many cases are outside the control ofthe Company and its directors. You are cautioned not to place undue reliance on these forward looking statements, which are based on the currentview of the management of the Company on future events. No assurance can be given that future events will occur, that projections will be achieved,or that the Company's assumptions are correct. The Company does not assume any responsibility to amend, modify or revise any forward-lookingstatements, on the basis of any subsequent developments, information or events, or otherwise. These statements can be recognized by the use ofwords such as “expects,” “plans,” “will,” “estimates,” “projects,” or words of similar meaning. Such forward-looking statements are not guarantees offuture performance and actual results may differ from those forecast and projected or in the forward-looking statements as a result of various factorsand assumptions.
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Agenda
II. 2Q2021 Operating Performance
IV. Appendix
I. WHA Group Overview
III. 2Q2021 Financial Performance
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2012 2017 20192015 2018
Key MilestonesWHA Group Overview
IPO and Listed Company
• On November 8, 2012,WHA Corporation becomes a listed company traded on the Stock Exchange ofThailand (SET), raising its invested capital toBaht 1,709 million(USD 56.97 million)
Significant Acquisition• April: Acquisition of a
92.88% shareholding equity of Hemaraj Land And Development Plc., Thailand’s leadingdeveloper of Industrial Estates, Utilities & Power, and Property Solutions
Branching Out to The Greater Growths
• WHA Utilities and Power Plc. received the approval of WHAUP as a SET-listed company
• WHA Group to develop first industrial zone in Nghe An Province, Vietnam with an investment of USD 100 million. Phase 1 of WHA Hemaraj Industrial Zone -Nghe An covers the area of 498 hectares. This is part of a long term plan
Remarkable Year• Double anniversary
celebration for WHA Group’s 15th and 30thof success in industrial estate development
• WHAUP expands overseas water business in Vietnam with exclusivity rights to invest and operate water business in WHA Industrial Zone 1 - Nghe An
A Big Leap Forward
• WHAUP (SG) 2DR PTE. LTD, a subsidiary of WHAUP signed share purchase agreement to acquired 34.00% of total issued shares in Duong River Surface Water Plant Joint Stocks Company in Vietnam
• Chonburi Clean Energy Company Limited (CCE), associated company of WHAUP group with 33.33% stake, started commercial operation of its 8.6 MW waste-to-energy power plant
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2020
• WHAUP opens Thailand's largest solar carpark with 4.88 MW at SAIC MOTOR-CP Co’s MG manufacturing plant
• WHAUP invests in Thailand's largest reclamation plant in WHA Eastern Industrial Estate
• Launches 11th domestic industrial estate, 1,280-rai WHA Rayong 36
• Launches TusPark WHA Incubation Center• Launches Thailand’s First E-Commerce
Park on Bangna-Trad Road Km.37 • WHA TOWER won the Asia Pacific
Property Awards on “Commercial High-Rise Architecture Thailand”
The Year of Transformation
#1 LogisticsProperties Developer
#1 Industrial Estate Developer
Leading Industrial Utilities and Power
Provider
Strengthened Digital Platform
67 mm m3 Utilities Sales & Management Volume in Thailand
and Vietnam
2,493,980 sq.m.Owned & Managed
5964 Data Centers
3 Tier-III facilities and the only Tier IV Gold Certified data center in Asia Pacific
(Excl. Australia)
FTTx covering 10Estates
Installed Equity MW Power
6M2021 Performance Highlights
70,613sq.m.Net rent for Built-to-Suit,
warehouse farm and RBF/RBW/1
241 Rai Land Sale in Thailand
WHA GROUP AT-A-GLANCEWHA Group Overview
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33 Rai Land Sale in Vietnam
56,316 sq.m. /2
Short-Term Contracts
Remark:/1 Including New Rent and Net Rent Under Ready-Built Properties (Include asset of HPF and HREIT) and Built-to-suit Properties, /2 Gross rent which include asset of WHART
83Rai outstanding LOI/MOU
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WHA Strategic LocationsWHA Group Overview
WHA 50+ STRATEGIC LOCATIONSIN THAILAND AND VIETNAM
WHA is a Key Player in the Development of Eastern Economic Corridor (EEC)
Remark: Information as of August 2021
Agenda
II. 2Q2021 Operating Performance
IV. Appendix
I. WHA Group Overview
III. 2Q2021 Financial Performance
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Financial Highlights (3M Q-o-Q)2Q2021 Financial Performance
Note : % of growth represents Q-o-Q growth basis
3M (2Q2021 vs 1Q2021)Q-o-Q Q-o-Q
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Reported Revenue and Share of Profit : THB 1,873 mm 33% | Reported Net Profit : THB 260 mm 93%
: THB 1,893 mm 30% | : THB 282 mm 53%Normalized Revenue and Share of Profit Normalized Net Profit
Rental Properties Business Normalized Revenue
THB 280 mm 1% • Due to increase in occupancy rate of Built-to-Suit project and RBF/RBW from both Logistics and Industrial Estate Development business.
Land Business and Sale of Properties Normalized Revenue and Share of Profit
THB 538 mm 230% • Mainly from increase in number of industrial land transfer during 2Q2021, despite revenue recognition of right of way compensation amounting of THB 125 mm in 1Q2020 while there were no such revenue in 2Q2021.
Utilities Business Normalized Revenue and Share of Profit
THB 557 mm 2% • Mainly due to increase in sale volume both domestic and Vietnam, increase in Water tariff, and contribution from high value products, despite limited excessive charge for the quarter
Power Business Normalized Share of Profit and Revenue from Solar Business
THB 326 mm 13% • Increase in share of profit due to solid contribution from SPP business,lower gas price as well as no planned maintenance in 2Q2021
• GHECO-One contribute share of profit in 2Q2021 in contrast to recording loss as a result of 37-day planned maintenance in 1Q2021 comparing to 20 days unplanned outage in 2Q2021 and favorable FX
Finance Cost THB 298 mm 6% • Due to increasing in IBD as business expansion and cash liquidity and reserve for bond repayment in 3Q2021 despite decrease in weighted average interest rate during 2Q2021
Normalized Net Profit THB 282 mm 54% • Driven from higher contribution from Land Business, Utilities Business and Power Business despite right of way compensation amounting of THB 125 mm in 1Q2021 and THB 0 mm in 2Q2021
Logistics Business2Q2021 Operating Performance
Logistics Business
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30 January 2020
Assets under Ownedand Managed
2021 TARGET
New Projects/ Net Rent 175,000 Sq.m.*
+ Short-Term Contract 50,000 Sq.m.
Note: *Included Net Rent of RBF & RBW
Logistics Business2Q2021 Operating Performance
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2Q2021
2.49 millionsq.m.
#1 Built-to Suit (BTS) Warehouse and Factories
200+ Well‐known
Tenants Profile
World Class standard warehouse and factories built to
specific client’s requirements
41StrategicLocations
28K* Sq.m.
New Projects/ Net Rent
&
2Q2020
2.44 millionsq.m.
30K** Sq.m.
Short-Term Contract
Remark: * 6M2021 = 71K sqm.** 6M2021 = 56K sqm
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 1Q2021
Logistics Business – 2Q2021 Operating Performance
Group-Owned assets and preleased
Asset Under Management
Area owned by WHA Industrial Development and its subsidiariesArea sold to HPF and HREIT
Industrial Properties
Area owned by WHA and its subsidiaries
Area sold to WHART and WHABT
Logistics Properties
726,944
196,195
530,749
1,442,391
324,645
1,767,036
88,913 141,619 141,619 169,433
891,286
298,139192,341
505,051
1,108,740
Total2,493,980
Unit : sq.m.
CAGR 24.9% (2006A – 2020A)
CAGR 19.4% (2012A – 2020A)
28%
19%19%
16%
8%10%
Thai
Japan
Europe
Asia(Exclu.Japan, Thai)
USA
China
42%
24%
19%
14%1%
3PL
FMCG&Healthcare
Manufacturer
E-Commerce
Other
25%
20%
14%6%6%
26%
3%
Japan
Europe
Asia(Exclu.Japan, China)USA
Australia
China
Other
26%
18%
16%
23%
4%13%
Auto&Parts
Logistic
Electronic
Consumer
Industrial Service
Other
Industrial Properties BusinessLogistics Properties Business
Customer by Nationality Customer by Industry
Industrial Properties BusinessLogistics Properties Business
2,150,410
Remark: Figures as of 30 Jun 2021
2,115,2931,975,361
2,321,721
2Q2021 Operating Performance
2,360,556
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2,493,980
2Q2021
109,565
213,657
74,017
118,265
59,893 35,334
293
45,243
135,777
12,426
33,031
35,279
-
50,000
100,000
150,000
200,000
250,000
300,000
2017 2018 2019 2020 6M2020 6M2021
RBF/RBW BTS/Warehouse farm
Unit: Sq.m.
New Projects / Net Rent
109,858
209,794
2Q2021 Operating PerformanceLogistics Business – 2Q2021 Operating Performance
258,900
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Logistics Business Continued to Outperform from the Growing Demand of E-Commerce Segment
130,691
92,924
70,613
Short-term Contract
Unit: Sq.m.
112,000
56,316
Short-term Contract2020 6M2021
30 January 2020
Delivering High Value Properties To Launch Mega Logistics Projects
New Mega Project at TheparakBuilding Area:~400,000 sq.m
ChonlaharnpichitNew Mega Projects at:
Building Area:~32,000 sq.m
2 Expansion Projects at: WHA Logistics Center Bangna-Trad Km. 23 Project 3Building Area:~60,000 sq.m
E-Commerce Park Phase IIBuilding Area:~80,000 sq.m
Logistics Business2Q2021 Operating Performance
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UPCOMING Assets Monetization to WHART
Expected Process to Complete and Recognized Revenue in 4Q2021Approx. 180,000 sq.m. of Built-to-Suit/General Warehouses
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>5,500TOTAL ASSET VALUE
THB mm
Logistics Business2Q2021 Operating Performance
Project WHA Mega Logistics Center Bangna-Trad Km. 23 Project 3
Project WHA Mega Logistics Center Wangnoi 62
Project WHA E-Commerce Park
100% OWN-ASSET
30 January 2020
Embracing Smart Technologies
Route Optimization for Maximum Profitability
In 2020, WHA Logistics signed MOU with Siametrics Technology Co., Ltd., a data driven solutions company, to collaboratively
explore and develop logistics solutions
AI Logistics Software
Barcode Scanning
Automated Guided Vehicle
AGV
IoT, Big Data
Robot Arm
AS/RS
Automated Storage & Retrieval System
Improving Operational Efficiency
Transforming Organization with Data Analytics
Exploring Smart Technologies to Offer Value-Added Services
Logistics Business2Q2021 Operating Performance
Warehouse Management System
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WHA TowerBangna Trad KM.7Over 52,000 sq.m.
WHA BangnaBusiness ComplexBangna Trad KM.7Over 9,800 sq.m.
@ PremiumTheparak RoadOver 3,800 sq.m.
WHA KWSukhumvit 25Over 9,900 sq.m.(Under Development)
TusPark WHAPathum WanOver 1,000 sq.m.
SJ Infonite IVibhavadi Rangsit RoadOver 42,000 sq.m. BANGKOK
SAMUTPRAKAN
WHA Office Solutions2Q2021 Operating Performance
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Offering 6 office buildings with full facilities & flexibilities to support work life for all businesses
WHA Tower
TusPark WHAWHA KW(Under Development)
Total Space
>100KSq.m.
SJ Infonite I
@ PremiumWHA Bangna
Business Complex
Offering warehouse of 10,000 sq.m. for Samut Prakan Ruamjai 5 (WHA) field hospital at WHA Mega Logistics Center Chonlaharnpichit KM 4, to be used as a 1,300 - bed field hospital
Focusing on Healthcare for Continuous Support the SocietyDigital Technology and Healthcare Supports2Q21 Operating Performance
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WHA enhances efforts to bring better healthcare to communities through Digital Technology by supporting Perceptra, a Thai startup, using AI to analyze x-ray images to diagnose and detect early sign of COVID-19 lung damage.
Industrial Estate Business2Q2021 Operating Performance
Industrial Estate Business
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30 January 2020
2Q2021 Operating PerformanceIndustrial Estate Business
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Industrial Estates/1
11Industrial Estates
1Industrial
Estate
Specialized Estate
Remark: /1 including new Industrial Estate WHA RY36
/2 including 49,000 Rai operating and under development in Thailand and Vietnam
/3 market share based on land transfer since 2015 to 30 September 2020 (reference land transfer from CBRE)
/4 Include customers from land sales and rental building in Thailand
>45% Market Share/3
for 15 YearsNo.1
855 Customers/4
Industrial Estates in Thailand1. WHA Chonburi Industrial Estate 1 – WHA CIE 12. WHA Chonburi Industrial Estate 2 – WHA CIE 23. Eastern Seaboard Industrial Estate – ESIE4. WHA Eastern Seaboard Industrial Eastate 1 – WHA ESIE 15. WHA Eastern Seaboard Industrial Eastate 2 – WHA ESIE 26. WHA Eastern Seaboard Industrial Eastate 3 – WHA ESIE 37. WHA Eastern Seaboard Industrial Eastate 4 – WHA ESIE 48. WHA Eastern Industrail Estate – WHA EIE9. WHA Rayong Industrial Land – WHA RIL10. WHA Saraburi Industrial Land – WHA SIL11. WHA Rayong 36 Industrial Estate- WHA RY36
Industrial Estate in Vietnam1. WHA Industrial Zone 1 – Nghe An
Industrial Estate Overview
30 January 2020
Industrial Estate Business2Q2021 Operating Performance
2Q2020 2Q2021
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6M2020 6M2021
2Q2020 2Q2021
2Q2020 2Q2021
395 Rai290 Rai
Industrial Land Sale
Industrial Estate OverviewOutstanding LOI/MOU
Thailand
Vietnam
201 Rai
2021F
1,030 Rai
305 Rai
725 Rai
TARGETLAND SALES
58 Rai 61 Rai
Backlog274 Rai
109 Rai
83 Rai
3028
53
8
81
28
241
33
83
125
76
262
28
368
27
Land Sale and Transfer Limited due to Travelling Restriction from COVID-19
Unit: rai Breakdown by Country
Overall Portfolio From 2019-2Q21
Japan 32% 6%Thailand 17% 9%Europe 11% 4%USA 8% 4%China 11% 61%Taiwan 4% 10%Korea 2% 2%Others 15% 4%
Total 100% 100%
Customer Breakdown*
Breakdown by Industry
Overall Portfolio From 2019-2Q21
Auto 32% 23%Consumer 16% 32%Petrochemical 8% 3%Steel/Metal 9% 8%Electronics 9% 20%Logistics 5% 0%Others 21% 14%
Total 100% 100%
Domestic Land Sales
Remark: * By number of contracts
No.1 Accumulated Domestic Industrial Market Share over 10 Years
Industrial Estate Business 2Q2021 Operating Performance
665
1,043
835
974 933816
218
30 53
0
200
400
600
800
1,000
1,200
2014 2015 2016 2017 2018 2019 2020 2Q20 2Q21
21
10 Years 5 Years
35% 53%
30 January 2020
Thailand’s Jan – June 2021 Investment Applications Reach USD12 billion
FDI Quadruple, E&E and Medical Sectors Continue to Expand
Industrial Estate Business 2Q2021 Operating Performance
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Chachoengsao
Chonburi
Rayong
Total Value
126,640million THB
FDI Application
#1#2#3
Investment Promotion Summary Jan – Jun 2021
Top Target Industries
Electrical Appliances and Electronic
60,970 million THB
Medical Industry
43,040 million THB
Total Value
206,860million THB
Investment Applications in Target Industries Investment Applications in EEC
Total Value
278,658million THB
+14%
+234%
704 Projects
2020 2021
801Projects
2020 2021
+158%149,760 Million THB
386,200 Million THB
+136%
Source: BOI
30 January 2020
Extending Our No. 1 Position
2Q2021 Operating PerformanceIndustrial Estate Business
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WHA RY 36 construction started by end of 2020
• Rayong Province• Gross area 1,280 Rai• Sellable area 960 Rai
Project Highlights
Water Supply & Water Treatment SystemWater Treatment Plant Capacity
5,000 cu.m./day
Wastewater TreatmentAerated Lagoon Capacity of
4,000 cu.m./day
Stable communication networks with fiber optic. Full range of fixed-line, mobile telephone and internet network
Communication System
Main Road25-40 meters width reinforced concrete road
Electricity22kV and 115 kV by PEA(Provincial Electricity Authority)
Strategic LocationBangkok152 KM.Sriracha City49 KM.Pattaya City31 KM.
Utapao Airport28.5 KM.SuvarnabhumiAirport130 KM.
Laemchabang Port38 KM.Map Ta Phut Port22 KM.
Jointed operation with IEAT BOI Promoted Zones EEC Promoted Zones for
Targeted Industries
Infrastructure and Utilities
30 January 2020
SMART ECO INDUSTRIAL ESTATES
SECURITY
MOBILITY
POWER
COMMUNICATION
SERVICES
WATER
Continue Rolling out Smart Eco IE Concepts
2020 2021
S
M
A
R
T
Well-Establishment of The 6 Pillars
Embracing New Technologies and Innovation
Industrial Estate Business 2Q2021 Operating Performance
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UNIFIED CONTROL CENTER AT WHA TOWER Water Quality Monitoring Systems (WQMS)
Ultrasonic Water Level Sensor (UWLS)
Control Performance APC
Asset Performance Manager (APM)
SCADA
Aquis
SE — Energy Performance & Power Advisor
Maintenance Smart App (MSA)
Smart Sensor, Fire Pump (SSFP)
Learning Camera, Flooding Camera (LCFC)
Rainfall Monitoring System (RMS)
Closed Circuit TV (CCTV)
Air Quality Monitoring System (AQMS)
Leverage on 30-year Experience in Thailand to Expand Regionally
3,100 RaiTotal phase 1 development
is on going
Revised Investment Registration Certificate Granted to WHA Industrial Zone 1 Phase 1 in Nghe An, Vietnam
1,000 RaiPhase 1A is 99%
completed and 54% leased
2,100 RaiObtained investment
licenses, permits, approvals of Phase 1B
17,500 RaiTotal Project In Nghe An, Vietnam
From Thailand Leader to ASEAN Champion
Industrial Estate Business 2Q2021 Operating Performance
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WHA Industrial Zone 1 - Nghe An, in Vietnam was granted the Revised Investment Registration Certificate for Phase 1 covering 498 hectares by the Nghe An Provincial People’s Committee.
Remark: /1 Approximate timeline 2023 - 2024
Solid Performance Witnessed in WHA Nghe An Industrial Zone 1
Growing Strong in Vietnam
Industrial Estate Business 2Q2021 Operating Performance
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Equipped with HIGHEST QUALITY and INTERNATIONAL STANDARD Infrastructure
Enabling OTHER BUSINESSES and COLLABORATIONS with industry experts
4 lanes with Reinforced
Concrete Pavement
Dike at 4.30 m. high with drainage
pumping system
Fiber Optic For High Speed
InternetWater
BusinessIndustrial Properties
Gas PipelineBusiness/1
Customer Breakdown*
Remark: * By number of contracts
45%
27%
9%
18%China
Vietnam
Japan
Others
22%
22%11%
45%
Electronics
Automotive
Consumer
Others
Overall Portfolio by Country
Overall Portfolio by Industry
Introducing Thanh Hoa ProvinceWHA Smart Technology
Industrial Zone - Thanh Hoa(540 Ha + 270 Ha potential expansion)
Proximity to Hanoi and Haiphong, and with upcoming completion of motorway, land area well suited for technology-based industries.
Thanh Hoa well positioned to attract high value FDI from China, Japan, South Korea, Taiwan, Europe, US, and other countries
Significant expansion of Northern Technology Corridor towards the south due to labor and land availability, improving logistics
With additional investments, supply chain will become more integrated. Vietnamese local content of manufactured products will increase
WHA Northern IndustrialZone - Thanh Hoa
(340 Ha)
Proximity to Nghi Son Petrochemical complex, this land area is well suited for intermediate and downstream industries, metal fabrication and foundries, automotive parts, mechanical assembly, building materials, bio-chemical, plastics, electrical wire, packaging and others.
Significant expansion of Northern Industrial Corridor towards the south due to labor and land availability, improving logistics
NGHE AN
THANH HOA
HANOI
HAI PHONG
Photo: Signing MOU with Thanh Hoa PPC
Signed MoU to develop 2 industrial zone projects in Thanh Hoa Province, Vietnam with a total gross area of 1,150 hectares; construction
is scheduled in 2023 and 2024
Proximity to Hanoi and Hai Phong with improving logistics infrastructure
Established industrial base especially in petrochemical industry (i.e. Nghi Son Petrochemical Complex)
Large Population, labor, and educational institutions Availability with 3.6 million population (ranked 3rd in Vietnam) and 2.3 million labor forces
KEY STRENGTHS OF THANH HOA PROVINCE
Industrial Estate Business 2Q2021 Operating Performance
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Enhancing Partnership and Collaboration
TusPark WHA Partners with Chulalongkorn School of Integrated Innovation for Research and Development Collaboration
Industrial Estate Business2Q21 Operating Performance
Thailand’s first TusPark WHA signed a Memorandum of Understanding (MoU) with Chulalongkorn School of Integrated Innovation (ScII) to jointly engage in enhanced collaboration efforts in the field of Science and Technology.
The aim is to promote cooperation among students, startups and businesses, specifically in the industrial and manufacturing sectors, and provide a nurturing environment for research and innovation.
WHA Group and MG Team Up for EV Charging Stations in WHA Industrial Estates
WHA Group, SAIC Motor-CP Company Limited and MG Sales (Thailand) Co., Ltd., manufacturer and distributor of MG cars in Thailand, signed a cooperation contract to install five “MG Super Charge” stations for electric vehicles in WHA industrial estates located in the EEC and Saraburi province and will welcome the public 24/7 starting in October onward.
This project will promote clean energy usage, serve the growing number of people in and around the EEC who drive electric cars, and accelerate the country’s drive to be a regional production hub for EVs.
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Utilities and Power Business2Q2021 Operating Performance
Utilities and Power Business
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Sole Provider of Utilities to Manufacturers/Factories in Leading Industrial Estates with a Concrete Plan to Capture Increasing Demand from Heavy Users and Expand Outside i.e. Other IEs, Non-IE Area and International
Water Sales & Managed Volume in Thailand and Vietnam
Utilities Business - Overview2Q2021 Operating Performance
2Q21
35million m3
30million m3
2Q20
Municipal Water
Industrial Water
Wastewater Treatment
Reclaimed & Demineralized Water
Water Product/Services & Capacity
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2021F
153million m3
Power Business - Overview2Q2021 Operating Performance
596Installed
Equity MW
670Installed
Equity MW
Conventional Power Plant
Renewable Energy
Natural Gas2Q21 2021F
Continuing Growth from Projects Under Construction and Committed Projects in Pipeline
547 Equity MW of Existing Conventional Power
Operating Projects – WHANGD 2 and WHANGD 4Under Development – EIA Approved for WHANGD 3
Solar Rooftops
Equity MW COD46Industrial Waste to Energy
Equity MW COD3
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Utilities and Power Business2Q2021 Operating Performance
Q1
UTILITIES BUSINESS POWER BUSINESS
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Strong growth in domestic utilities while SDWTP recorded less loss due to sale volume growth
Solid performance of solar and SPP business together with a recovery of GHECO-One’s contribution despite performing 20-day unplanned outage in May-21
• The Revenue from domestic utilities grew +25% YoY due to
o Volume growth from demand recovery of both existing demand (rebounded to pre-covid level) and new demand from Gulf SRC achieved COD in Q2’21 and Petro-chem customers since Q4’20
o Water tariff adjustment of ca. 4% of since Jan 21
• For Vietnam utilities business, the sale volume of SDWTP in Q2’21 increased by 29% YoY and 26% QoQ due to higher customer demand. Net loss was still recorded but decreased QoQ and YoY
• One-time accounting adjustment item of -8.2 MB at CuaLo, caused the share of loss of utilities business increased by 4% QoQ
• Strong growth from Solar rooftop business. Total revenue including EPC increased by 289% YoY while revenue w/o EPC revenue increased by 181% YoY and 35% QoQ as a results of higher MW under operation (20.2 MW as of Q2’20 vs 46.2 MW as of Q2’21)
• Normalized share of profit and dividend income from power business increased by 8% YoY and 64% QoQ mainly due to robust growth of normalized share of profits from SPP as a result of higher IU demand, lower gas price and no planned maintenance in this quarter
• GHECO-One came back to contribute share of profit in Q2’21 comparing to recording loss as a result of 37-day planned maintenance in Q1’21. However, the normalized share of profit decreased 38% YoY due to the unplanned outage of 20 days in Q2’21
Utilities Business – Operating Performance2Q2021 Operating Performance
Million m3/ year
Remark: The Utilities & Power business’s operating matrix under WHA level may differ from one shown in WHAUP level as a result of Pre-IPO restructuring, resulting in partial recognition in FY2016 under WHAUP
Utilities Portfolio Growth – Sale & Management Volume
43 46 49 53 55 47
19 17 17 17 1715
32 33 34 35 3531
0.22
13 1994 96 100 105 110 114
0
50
100
150
2015 2016 2017 2018 2019 2020
Industrial Water Raw Water WastewaterDemineralized Water Premium Clarified Water SDWTP & Cua Lo
Water Consumption 2017 2018 2019 2020 2021E 2022E
SPP COD 3,500 – 4,000 m3/day
Potential Demand from New Key Projects and Key Customers
4SPPs 1SPP 1SPP (Jan 19)
Block 1 Block 2
CCE (Q4’19)Waste to Energy 1,000 m3 / day
IPP COD 40,000 m3 / day
Petrochemical +10,000
On Schedule
Nghe An - Vietnam +5,000
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Million m3 2Q20 2Q21 YoY (%)
Raw Water 3.8 6.2 64%Industrial Water 12.8 13.1 12%Wastewater Treatment 7.4 9.3 26%Demineralized Water 0.4 1.0 139%
Total Thailand 24.4 29.6 27%
SDWTP & Cua Lo 4.5 5.8 29%
Total 28.9 35.4 28%
Utilities Business – Business Updates2Q2021 Operating Performance
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Water Treatment Plant
Wastewater Treatment Plant
Team B2021 (F) 2022 (F)
= Gulf SRC
= Petrochem 16.2Million M3
3.7Million M3
2.2Million M3
5.8Million M3
2020 (A)
0.3Million M3
0.4Million M3
New Big Customer Demand Covid-19 Business Continuous Plan
14 days
WHA RY36The new WHA IE namely WHA RY36 is under construction with the water demand up to 7,500 cmd plus Alternative Raw Water Development project with supply capacity 6 MCM.
= Potential Demand= Supply Capacity
2.7Million M3
6.0Million M3
per year
per year
Bubble and Seal control room of water plant to secure operation and ensure continuity of our utilities system
Team A
30 January 2020
Eastern Region
Alternative Raw Water ResourcesReclamation Plant to Premium
PW to GULF SPPs (ESIE)
Demineralized Water (GPSC) Reclamation Plant (WHA EIE)
To Supply Value-added Products to Industrial Customers
Complete full capacity construction Wastewater reclamation plants
EECi
Non-WHA IE
Implementing Smart Utilities Services Platform and Innovative Solution for Industrial Customers in
WHAIE
Exploring Potential Alternative Raw Water
Resource
Leveraging Our Expertise to offer Value-added
Products
Wastewater Reclamation
Utilities Business – Growing Beyond the Core with SMART Services Platform 2Q2021 Operating Performance
Capacity : 1,900,000 m3/yr
Max Capacity : 4,400,000 00,000 m3/yr
Max Capacity : 11,000,000 m3/yr
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Partnering with other Industrial Estate
Developers to provide utilities solutions
30 January 2020
4.7 Million m3/year Water Distribution Capacity
HanoiHung Yen
Bac Ninh
3.5 Million m3/yearWastewater Treatment Capacity
4.4 Million m3/yearWater Distribution Capacity
Tenants occupy
>50%of leasable area
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110
110 Million m3/yearWater Distribution Capacity
2Q2021 Operating PerformanceUtilities Business – Accelerating our Expansion in Vietnam
Actively exploring for greenfield utilities project and M&A opportunities in
Vietnam
Cua Lo Water Plant (47% Shareholding equity)
• To expand capacity to accommodate the expanding demand from industrialization and urbanization
36
WHA Nghe An Industrial Zone 1(100% Shareholding equity)
• To increase water distribution volume and utilization of wastewater treatment capability from the commissioning of customers’ plants
Duong River Surface Water Treatment Plant
(34% Shareholding equity)
• To increase customers base and water supply coverage areas to nearby provinces
(Bac Ninh, Hung Yen)
Power Business – Operating Performance
GWh
3M Y-o-Y
IPP Energy Dispatch
99.4% 100.0%76.5%
99.8%
Gheco-One Glow IPP
% AF IPP Availability
1,440
1300
1,113
133 236
Gheco-One HHPC Glow IPP
2Q202Q21
2Q202Q21
2Q2021 Operating Performance
37
GWh SPP Group Energy Dispatch % AF SPP Group Average Availability
96.9% 99.2%
2Q20 2Q21
EGATIU
1,294 1,311
298 428
Q2'2020 Q2'2021
1,592 1,739
2Q20 2Q212Q20 2Q21
30 January 2020
1 project COMMISSIONING in 2Q2021
with a total capacity of 2.5 MW(Total 46 Equity MW in operations as of 2Q2021)
8 new projects SIGNED with Industrial
Users with a total capacity of 12 MW
Selected projects commissioning in 2021
Continuing to be Strong in Solar Rooftop for Industrial Users
Power Business – Enlarging Solar Energy Portfolio 2Q2021 Operating Performance
38
Cumulative Target Signed PPA
33MW
2019
300MW
2023F90MW
2021F51MW
2020
Auto Alliance Thailand(AAT) Solar Rooftop –EPC ServiceESIE (Rayong)
CONTINENTAL TyresSolar ProjectsWHA ESIE 4 (Rayong)
Capacity 4.2 MW
Capacity 4.9 MW
Honda Solar ProjectsPrachinburi Province
Capacity 2.5 MW
30 January 2020
P2P Energy Trading
Energy cost saving to industrial users
Increase opportunity to invest in renewable energy
Prosumer
ConsumerConsumer
Actively Exploring Vietnam Opportunities
Explore Potential Investment in Solar
Power projects in Vietnam
Signed a Memorandum of Understanding with PEA
ERC Subcommittee’s Approval
Synchronization with PEA interconnection and Technical testing/ system interface
WHAUP collaborates with PEA in studying and implementing P2P Energy Trading System in WHA’s Industrial Estates
Introducing Innovation And Smart Solutions
Power Business – Accelerating Business Growth 2Q2021 Operating Performance
39
Smart Energy PlatformWHAUP, PTT and Sertis signed MOU to jointly developed a platform to trade solar energy within WHA Group’s industrial estates
• To optimise electricity management using AI and Blockchain Technology
Digital Business2Q2021 Operating Performance
Digital Business
40
30 January 2020
Digital Business
DATA CENTER & MANAGED SERVICEUNDERGROUND FIBER OPTIC (FTTx)
100Available& Utilized
%
WHA SILWHA RILWHA ESIE 2WHA ESIE 3WHA ESIE 4CIE 2
15Available & Utilized
% WHA ESIE 1ESIE
10Available & Utilized
% WHA EIE
5Available &Utilized
% WHA CIE
Laying Digital FoundationsSecuring Demands10
Industrial Estates covered FTTx by
2021
Leverage WHA Group’s customers base to capture captive demand
Generate Recurring income
Become provider of FTTxinfrastructure of WHA Group
Attract customers through cross selling with existing services(network infrastructure, DC & Backup and System Integrators)
Leverage on WHA Group’s customers base
Moving up the value chain (from IAAS to PAAS and SAAS)
DATA CENTERS
EquityRacksCapacity
102TIER IVGOLD
EquityRacksCapacity
4
356TIER III
Colocation Service
Cloud Computing Service
PRODUCTS & SERVICES
Digital Business
41
2Q2021 Operating Performance
WHA signed MOU with Telecom Operators To collaborate in
• 5G Network Planning • 5G Solutions
Bringing 5G into RealityDtac and WHA Group Develop Smart Water Monitoring Showcase using 5G Technology in WHA EIE
5G DevelopmentKick-off EventWHA hosted “WHA 5G Smart Eco System” Event for reputable technology companies to demonstrate, display and showcase of its advance technology for Smart Manufacturing.
Digital Business2Q2021 Operating Performance
42
30 January 2020
COMMUNICATION & ACTIVITIES
WHA Digital Transformation Digital Transformation Projects
2Q2021 Operating PerformanceDigital Transformation and Change Management
Make a CHANGE
43
Agenda
II. 2Q2021 Operating Performance
IV. Appendix
I. WHA Group Overview
III. 2Q2021 Financial Performance
44
Total Revenue and Share of Profit (3 Months) 2Q2021 Financial Performance
Total Revenue and Share of Profit
• Despite strong contribution from Land Business, Utilities Business and Power Business, the Statutory Revenue and Share of Profit in 2Q2021 stood at THB 1,873 mm which slightly decreased by 5% Y-o-Y mainly due to FX impact of Power business from THB depreciation during 2Q2021 whereas THB appreciation in 2Q2020.
• Besides, there were as one-time other revenue recognition of contract restructuring from 1 client in 2Q2020 amounting of THB 172 mm in 2Q2020 and revenue recognition of right of way compensation amounting of THB 89 mm in 2Q2020 while there were no such revenue in 2Q2021.
• While the Statutory Revenue and Share of Profit in 2Q2021 was THB 1,873 mm which increased by 33% Q-o-Q due mainly to strong contribution from Land Business, Utilities Business and Power Business.
• Excluding Impact from FX, Total Normalized Revenue and Share of Profit in 2Q2021 was THB 1,893 mm increasing by 0.4% Y-o-Y and 30% Q-o-Q.
Unit: THB mm
Total Revenue Share of Profit
Statutory (3 Months) Normalized Basis (3 Months)Normalized Basis(2)
45
Impact from FX Total Revenue and Share of Profit
Remark: (1) Representing Total Revenue Inclusive Share of Profit (Financial Statement) Remar (2) Representing Total Revenue Inclusive Share of Profit (Normalized) excluding FX impact
XX
1,656
237
(20)
1,8731,406 1,326
128
(48)
1,658
227821,406
(1)1,967(1)
5% Y-o-Y
1,873(1)
1,885(2) 1,893
(2)
33% Q-o-Q
X
X
30% Q-o-Q
0.4% Y-o-Y
1,454(2)
2Q2020 1Q2021 2Q2021 1Q2021 2Q20212Q2020
1,967
Net Profit (3 Months) 2Q2021 Financial Performance
Net Profit Unit: THB mm
Statutory (3 Months) Normalized Basis (3 Months)
• In 2Q2021, the Reported Net Profit and Normalized Net Profit decreased by 52% Y-o-Y and 39 % Y-o-Y respectively, due to one-time other revenue recognition of contract restructuring from 1 client in 2Q2020 amounting of THB 172 mm and revenue recognition of right of way compensation amounting of THB 89 mm in 2Q2020, THB 125 mm in 1Q2021 and THB 0 mm in 2Q2021.
• However the Reported Net Profit and Normalized Net Profit in 2Q2021 increased 93% Q-o-Q and 53% Q-o-Q, respectively, driven from higher contribution from Land Business, Utilities Business and Power Business.
Remark: (1) Representing Net Profit (Financial Statement)Rem ark:(2) Representing Net Profit (Normalized) excluding FX impact
(3) Impact from FX attributed to parent
Normalized Basis(2)
Normalized Net Profit Impact from FX(3)Net Profit Margin
46
Net Profit
X
282
(22)
466
76 0
542
184
(49)
466(2)
X
25%13% 15%
93% Q-o-Q 53% Q-o-Q
2Q2020 1Q2021 2Q2021 1Q2021 2Q20212Q2020
135
135(1)
184(2)
260
28%
10%14%
52% Y-o-Y
542(1)
260(1)
39% Y-o-Y
282(2)
Total Revenue and Share of Profit (6 Months) 2Q2021 Financial Performance
Total Revenue and Share of Profit Unit: THB mm
Remark: (1) Representing Total Revenue Inclusive Share of Profit (Financial Statement) Remar (2) Representing Total Revenue Inclusive Share of Profit (Normalized) excluding FX impact, Impact from TFRS and deferred revenue items
Statutory (6 Months) Normalized Basis (6 Months)
Normalized Basis(2)
47
• For the 6M2021 performance, the Statutory Revenue and Share of Profit was THB 3,279 mm which increased by 1% Y-o-Y, while the Total Normalized Revenue and Share of Profit of 6M2021 stood at THB 3,347 mm which increased by 2% Y-o-Y due mainly to strong contribution from Utilities Business and Power Business.
• Although there were one-time other revenue recognition in 6M2020 of contract restructuring from 1 client while there were no such revenue in 6M2021.
Total Revenue and Share of Profit Total Revenue Share of Profit Impact from FX
2,983
364
(68)
2,844
440
(40)
3,2793,244
6M2020 6M2021
3,284(2)
3,347(2)
6M2020 6M2021
3,244(1)
3,279(1)
1%
2%
Net Profit (6 Months) 2Q2021 Financial Performance
Net Profit Unit: THB mm
Statutory (6 Months) Normalized Basis (6 Months)
Normalized Basis(2)
Remark: (1) Representing Net Profit (Financial Statement) Rema rk:(2) Representing Net Profit (Normalized) excluding FX impact
(3) Impact from FX attributed to parent
39
48
• The Reported Net Profit of 6M2021 decreased by 38% Y-o-Y because of one-time other revenue recognition of contract restructuring from 1 client in 2Q2020 amounting of THB 172 mm.
• Excluding the impact from FX, the Normalized Net Profit of 6MQ2021 decreased by 31% Y-o-Y.
Normalized Net Profit Impact from FX(3)Net Profit MarginNet Profit
466
(71)
677
(36)
641
641(1)
395(1)
(38%)
677(2)
(31%)
22%15%
20%12%
466(2)
6M2020 6M2021 6M2020 6M2021
395
Financial Highlights (3M Y-o-Y)2Q2021 Financial Performance
Note : % of growth represents Y-o-Y growth basis
Reported Revenue and Share of Profit : THB 1,873 mm 5% | Reported Net Profit : THB 260 mm 52%
Rental Properties Business Normalized Revenue
THB 280 mm 3% • Strong occupancy rate on both Built-to-Suit project and RBF/RBW, despite 100% OR asset monetized in 4Q2020
Land Business and Sale of Properties Normalized Revenue and Share of Profit
THB 538 mm 2% • Mainly from increase in number of industrial land transfer during 2Q2021, in spite of revenue recognition of right of way compensation amounting of THB 89 mm in 2Q2020 while there were no such revenue in 2Q2021
Utilities Business Normalized Revenue and Share of Profit
THB 557 mm 25% • Mainly due to increase in sale volume both domestic and Vietnam, increase in Water tariff, and contribution from high value products as well as drought situation in 2Q2020 which were no such situation in 2Q2021
Power Business Normalized Share of Profit and Revenue from Solar Business
THB 326 mm 23% • Increase in share of profit due to solid contribution from SPP business,lower gas price as well as no planned maintenance in 2Q2021
• Significant increase from Solar business
Finance Cost THB 298 mm 2% • Due to decrease in weighted average interest rate during 2Q2021
Normalized Net Profit THB 282 mm 39% • One-time other revenue recognition of contract restructuring from 1 client in 2Q2020 amounting of THB 172 mm
• Revenue recognition of right of way compensation amounting of THB 89 mm in 2Q2020, vs. THB 0 mm in 2Q2021
: THB 1,893 mm 0.4% | : THB 282 mm 39%Normalized Revenue and Share of Profit Normalized Net Profit
3M (2Q2021 vs 2Q2020) Y-o-Y Y-o-Y
49
Financial Highlights (3M Q-o-Q)2Q2021 Financial Performance
Note : % of growth represents Q-o-Q growth basis
3M (2Q2021 vs 1Q2021)Q-o-Q Q-o-Q
50
Reported Revenue and Share of Profit : THB 1,873 mm 33% | Reported Net Profit : THB 260 mm 93%
: THB 1,893 mm 30% | : THB 282 mm 53%Normalized Revenue and Share of Profit Normalized Net Profit
Rental Properties Business Normalized Revenue
THB 280 mm 1% • Due to increase in occupancy rate of Built-to-Suit project and RBF/RBW from both Logistics and Industrial Estate Development business.
Land Business and Sale of Properties Normalized Revenue and Share of Profit
THB 538 mm 230% • Mainly from increase in number of industrial land transfer during 2Q2021, despite revenue recognition of right of way compensation amounting of THB 125 mm in 1Q2020 while there were no such revenue in 2Q2021.
Utilities Business Normalized Revenue and Share of Profit
THB 557 mm 2% • Mainly due to increase in sale volume both domestic and Vietnam, increase in Water tariff, and contribution from high value products, despite limited excessive charge for the quarter
Power Business Normalized Share of Profit and Revenue from Solar Business
THB 326 mm 13% • Increase in share of profit due to solid contribution from SPP business,lower gas price as well as no planned maintenance in 2Q2021
• GHECO-One contribute share of profit in 2Q2021 in contrast to recording loss as a result of 37-day planned maintenance in 1Q2021 comparing to 20 days unplanned outage in 2Q2021 and favorable FX
Finance Cost THB 298 mm 6% • Due to increasing in IBD as business expansion and cash liquidity and reserve for bond repayment in 3Q2021 despite decrease in weighted average interest rate during 2Q2021
Normalized Net Profit THB 282 mm 54% • Driven from higher contribution from Land Business, Utilities Business and Power Business despite right of way compensation amounting of THB 125 mm in 1Q2021 and THB 0 mm in 2Q2021
Financial Highlights (6M Y-o-Y)2Q2021 Financial Performance
Note : % of growth represents Y-o-Y growth basis
Reported Revenue and Share of Profit : THB 3,279 mm 1% | Reported Net Profit : THB 395 mm 38%
Rental Properties Business Normalized Revenue
THB 557 mm 2% • Strong occupancy rate on both Built-to-Suit project and RBF/RBW, despite 100% OR asset monetized in 4Q2020
Land Business and Sale of Properties Normalized Revenue and Share of Profit
THB 701 mm 9% • Mainly from Industrial land transfer shifting due to Covid-19 traveling restriction which is likely temporary effect
Utilities Business Normalized Revenue and Share of Profit
THB 1,105 mm 16% • Mainly due to increase in sale volume both domestic and Vietnam, increase in Water tariff, and contribution from high value products as well as drought situation in 6M2020 which were no such situation during 6M2021
Power Business Normalized Share of Profit and Revenue from Solar Business
THB 613 mm 19% • Mainly from significant increase from Solar business and solid contribution from SPP business, despite scheduled maintenance of Gheco-One and 2 SPPs during 1Q2021
Finance Cost THB 579 mm 3% • Due to increasing in IBD as business expansion and cash liquidity and reserve for bond repayment in 3Q2021 despite decrease in weighted average interest rate during 2Q2021
Normalized Net Profit THB 466 mm 31% • Mainly due to one-time other revenue recognition of contract restructuring from 1 client in 2Q2020 amounting of THB 172 mm
: THB 3,347 mm 2% | : THB 466 mm 31%Normalized Revenue and Share of Profit Normalized Net Profit
6MY-o-Y Y-o-Y
51
Industrial Revenue
Real GPM before PPA of 2Q2021 : 45% (Only Land Sale excluded Other Land Business and Sale of Properties Incomes )
Performance by Business (3 Months)2Q2021 Financial Performance
Note : Gross profit margin on consolidated financial statement is different from that on operating financial statement (genuine performance) due to the effect of PPA adjustment after acquisition
RENTAL PROPERTY BUSINESS (NORMALIZED) LAND BUSINESS AND SALE OF PROPERTIES (NORMALIZED)
The GPM from Revenue from Land Business and Sale of Properties (Excluded Other Land Business and Sale of Properties Incomes (1)) in 2Q2021 stood at 40% which increased from 34% in 2Q2020, according to lower cost of plot of land transferred.
There were revenue recognition of right of way compensation amounting of THB 89 mm in 2Q2020, THB 125 mm in 1Q2021 and THB 0 mm in 2Q2021.
The GPM in 2Q2021 increased to 75% due mainly from increase in occupancy rate of Built-to-Suit and RBF/RBW.
Unit: THB mmUnit: THB mm
Logistics Revenue Normalized Margin
3M
Real GPM before PPA of 2Q2021 : 75%
Remark :(1) Other Land Business and Sale of Properties Incomes Right of Way Compensation
3M
Normalized Margin
Industrial RevenueLogistics Revenue
Normalized Margin included Other Land Business and Sale of Properties Incomes(1)
52
162
115
277
69%
1 Q2 0 2 1
173
117
289
70%
2 Q2 0 2 0
169
111
280
74%
2 Q2 0 2 1
538
538
2 Q 2 0 2 1
527
2
529
2 Q 2 0 2 0
41%
85%
34%
40%
154
9163
1 Q 2 0 2 1
51%
Industrial Revenue
Real GPM before PPA of 6M2021 : 47% (Only Land Sale excluded Other Land Business and Sale of Properties Incomes )
Performance by Business (6 Months)2Q2021 Financial Performance
Note : Gross profit margin on consolidated financial statement is different from that on operating financial statement (genuine performance) due to the effect of PPA adjustment after acquisition
RENTAL PROPERTY BUSINESS (NORMALIZED) LAND BUSINESS AND SALE OF PROPERTIES (NORMALIZED)
The GPM from Revenue from Land Business and Sale of Properties (Excluded Other Land Business and Sale of Properties Incomes (1)) in 6M2021 decreased to 39% , according to higher cost of plot of land transferred as well as lower margin from Sale of Investment Properties from Logistics business.
There were revenue recognition of right of way compensation amounting of THB 89 mm in 6M2020 and THB 125 mm in 2Q2021.
The GPM in 6M2021 stood at 72% as a result of increase in occupancy rate of Built-to-Suit and RBF/RBW.
Unit: THB mmUnit: THB mm
Logistics Revenue Normalized Margin
6M
Real GPM before PPA of 6M2021 : 72%
Remark :(1) Other Land Business and Sale of Properties Incomes included Right of Way Compensation
6M
Normalized Margin
Logistics Revenue Industrial Revenue
Normalized Margin included Other Land Business and Sale of Properties Incomes(1)
53
773 692
29
774 701
45%39%
6 M 2 0 2 0 6 M 2 0 2 1
50%
52%
348 331
221 226
569 557
70% 72%
6 M 2 0 2 0 6 M 2 0 2 1
Nomalized Share of Profit Impact From FX Write-Off Tax PaymentNormalized Share of Profit Revenue from SolarUtilities Revenue Share of Profit
Performance by Business (3 Months)2Q2021 Financial Performance
UTILITIES BUSINESS (NORMALIZED) POWER BUSINESSUnit: THB mm
The GPM of Utilities sale in 2Q2021 stood at 38% which increased from 2Q2020 due mainly to increase water tariff and increase in value-added water sale volume which has higher GPM as well as drought situation in 2Q2020.
Unit: THB mmReal GPM before PPA of 2Q2021: 42%
Normalized other revenues consist of property and REIT management fee, acquisition fee, dividend income, share of profit from JV, revenue from digital business and others, excluding FX impact in other incomes.
The Normalized Other Reuven in 2Q2021 decreased significantly Y-o-Y due mainly to one-time other revenue recognition of contract restructuring from 1 client in 2Q2020 amounting of THB 172 mm while there were no such revenue in 2Q2021. Such revenue contributed fully to bottom line.
Unit: THB mm
Normalized Margin
Note : Gross profit margin on consolidated financial statement is different from that on operation financial statement (genuine performance) due to the effect of PPA adjustment after acquisition
Excessive Charge
Industrial RevenueLogistics Revenue
54
The Normalized performance (Normalized Share of Profit and Revenue from Solar business) in 2Q2021 was THB 326 mm which increased 23% Y-o-Y and 13% Q-o-Q due mainly to significant increase from Solar business and solid contribution from SPP business.
3M 3M
3M
(1)
Remark :(1) Normalized margin excluded Share of Profit
REVENUE FROM MANAGEMENT, INVESTMENTS AND OTHERS (NORMALIZED)
481 581 595
5 1 444547 557
(37) (39) (39)
34%
42%38%
2Q2020 1Q2021 2Q2021 2Q2020 2Q2021
251 14
258
523
271 54
(87)
239
1Q2021
166 122
(178)
110
52 85 60
305 94 132
357
179 192
2 Q2 0 2 0 1 Q2 0 2 1 2 Q2 0 2 1
Utilities Revenue Share of Profit
Performance by Business (6 Months)2Q2021 Financial Performance
UTILITIES BUSINESS (NORMALIZED) POWER BUSINESSUnit: THB mm
The GPM of Utilities sale in 6M2021 increased to 40% mainly from increase water tariff and increase in value-added water sale volume which has higher GPM as well as drought situation in 2Q2020.
Unit: THB mmReal GPM before PPA of 6M2021: 44%
Normalized other revenues consist of property and REIT management fee, acquisition fee, dividend income, share of profit from JV, revenue from digital business and others, excluding FX impact in other incomes.
The Normalized Other Reuven in 2Q2021 decreased significantly Y-o-Y due mainly to one-time other revenue recognition of contract restructuring from 1 client in 6M2020 amounting of THB 172 mm while there were no such revenue in 6M2021. Such revenue contributed fully to bottom line.
Unit: THB mm
Normalized Margin
Note : Gross profit margin on consolidated financial statement is different from that on operation financial statement (genuine performance) due to the effect of PPA adjustment after acquisition
Excessive Charge
Industrial RevenueLogistics Revenue
55
6M 6M
6M
(1)
Remark :(1) Normalized margin excluded Share of Profit
REVENUE FROM MANAGEMENT, INVESTMENTS AND OTHERS (NORMALIZED)
Nomalized Share of Profit Impact From FX Write-Off Tax PaymentNormalized Share of Profit Revenue from Solar
6M2020 6M2021
The Normalized performance (Normalized Share of Profit and Revenue from Solar business) in 6M2021 was THB 613 mm which increased 19% Y-o-Y due mainly to significant increase from Solar business and solid contribution from SPP business, despite scheduled maintenance of Gheco-One and 2 SPPs. During 1Q2021.
1,000 1,17615 6 948 1,105
(67) (77)
36%40%
6M2020 6M2021
496 437
21 176
(101) (264)
416 349
97 145
378 227
475 371
6 M 2 0 2 0 6 M 2 0 2 1
Rental property808 14%
Sale of Industrial Estates
1,029 18%
Sale of IP's1,168 20%
Utilities722 13%
Power997 18%Div & Mgt
526 9%
Other465 8%
Y2020TOTAL
THB 5,715 mm
Rental property
1,157 12%
Sale of Industrial
Estates1,884 20%
Sale of IP's2,368 25%
Utilities1,893 20%
Power1,032 11%
Div & Mgt 526 6%
Other5476%
Y2020TOTAL
THB 9,407 mm
Revenue and Gross Profit BreakdownGROSS PROFIT BREAKDOWNREVENUE AND SHARE OF PROFIT BREAKDOWN
Unit: THB mm Unit: THB mm
Remark: Share of profit from JV’s and Associates includedGross profits are based on consolidated financial statements and thus affected by PPA adjustment
Recurring vs Non-Recurring = 82:18
2Q2021 Financial Performance
Note: Statutory Basis
Recurring Revenue
56
Recurring vs Non-Recurring
55:45
Recurring vs Non-Recurring
62:38
Remark: Share of profit from JV’s and Associates included
Recurring vs Non-Recurring = 79:21
Rental property
557 17%
Sale of Industrial
Estates692 21%
Sale of IP's9
Utilities1,105 34%
Power349 11%Div & Mgt
274 8%
Other293 9%
6M2021TOTAL
THB 3,279 mmRental
property400 21%
Sale of Industrial
Estates350 18%
Sale of IP's0.3
Utilities400 21%
Power212 11%
Div & Mgt 274 14%
Other293 15%
6M2021TOTAL
THB 1,929 mm
Bond Issuance &Redemption
REIT Asset Monetization
Key Financial ActivitiesFinancing Performance
Approx. 180,000 sq.m. of BTS/General warehouse to WHART Total transaction size of approx. THB 5.5 bn
Upcoming Asset Monetization
57
Feb 2021 : WHA Bond Issuance of THB 1,000 mm at 1.89% cost of fund with 1 year tenorWHAUP Bond Issuance of THB 700 mm at 1.89% cost of fund with 1 year tenor
April 2021 : WHA Bond Issuance of THB 4,000 mm at 2.82% weighted average cost of fund with 3 year weighted average tenor
May 2021 : WHA Early Bond Redemption of THB 280 mm at 5.0% cost of fund
July 2021 : WHAUP Bond Issuance of THB 3,500 mm at 2.14% weighted average cost of fund with 3 year weighted average tenor
Financial PositionFinancial Performance
Unit: THB mm
CAPITAL STRUCTURE RETURN ON INVESTMENT
Total asset increased by THB 1,694 mm from 2020 due mainly to increase in non-current assets held for sale, cash and cash equivalents as well as decrease in investment property.
Total liability increased by THB 1,746 mm from 2020 due mainly to in crease in short-term loans from financial institution.
The total shareholders’ equity decreased by THB 52 mm from 2020 due mainly to decrease in retained earning.
58
82,264 82,621 84,315
33,101 32,167 32,115
49,163 50,454 52,200
1.49 1.57 1.63
1.19 1.28 1.34
(2.00)
(1.50)
(1.00)
(0.50)
-
0.50
1.00
1.50
2.00
0%
2019 2020 2Q2021Asset Equity Liability D/E IBD/E
11.4%
8.7%7.9%
7.1%
5.5% 5.1%4.9%
3.5% 3.1%
2019 2020 2Q'21
ROE ROIC ROA
Debt ProfileFinancial Performance
As of June 2021Unit: THB mm
Weighted Average Interest Rate
2.94%
WHA+WHAID WHAUP
Weighted Average Interest Rate
3.06%
Weighted Average Interest Rate
2.64%
As of December 2020
IBD/E Ratio : 1.34 time
Credit Rating*
A-
59Remark: *TRIS Rating affirms the rating at “A-” on 5th October 2020.
Unit: THB mm
Weighted Average Interest Rate
3.04%
WHA+WHAID WHAUP
Weighted Average Interest Rate
3.13%
Weighted Average Interest Rate
2.83%
IBD/E Ratio : 1.28 time
Bond8,000 mm
62%
Term Loan4,875 mm
38%
Bond20,342 mm
72%
Term Loan6,100 mm
21%
Short Term Note1,950 mm
7%
Bond29,472 mm
69%
Term Loan10,440 mm
24%
Short Term Note3,100 mm
7%
Bond6,310 mm
51%
Term Loan4,400 mm
36%Short Term Note
1,600 mm13%
Bond and Term Loan Maturity Profile
Bond and Term Loan Maturity as of 31st July 2021Unit: THB mm
Remark :THB 1,000 mm bond and THB 1,500 mm bond which would be matured in 2022 and 2025 respectively, had been early redeemed in March 2020.
THB 280 mm bond which would be matured in 2024, had been early redeemed in May 2021.
Financial Performance
60
1,500 mm
5,754 mm 4,578 mm 4,450 mm2,880 mm
1,400 mm1,060 mm
3,980 mm
1,000 mm 1,000 mm
2,200 mm
2,790 mm1,300 mm
1,320 mm
700 mm1500
2,000 mm
2,560 mm
13,934 mm
8,368 mm6,750 mm
4,200 mm
2,100 mm 1500
2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
WHA: Bond WHA: Term Loan WHAUP: Bond WHAUP: Term Loan
Agenda
II. 2Q2021 Operating Performance
IV. Appendix
I. WHA Group Overview
III. 2Q2021 Financial Performance
61
62
WHA Sustainability Development HighlightAppendix
Sustainability at WHA Group
WHA Group has rolled out its 5-YearSustainability Framework to drive corporatesustainability actions to build upon, andalign with the Group’s business direction tobecome “Your Ultimate Solution Partner”.
To achieve its aspiration, the Framework isbuilt on the foundation of good corporategovernance, human capital as strategicenabler and key driving forces includingdigitization and natural resources.
The long-term corporate sustainability goalsaddress the Group’s material topics that areimportant to WHA Group and the keystakeholders. Furthermore, the Groupensures to stay ahead by taking intoconsideration the risks and opportunitiesanalyzed from global existing and emergingtrends.
Framework and Strategy
DIGITIZATION Revenue generation and cost
reduction from innovation projects 100% data breach prevention in terms
of data leaks, thefts or losses of both inbound and outbound data are achieved in 2025
NATURAL RESOURCES Double the reclaimed industrial water
for industrial use from 30,200 cubic meter/day in 2020 to 60,400 cubic meter/day by 2025
HUMAN CAPITAL Maintain Human Capital Return on Investment at 14 times by 2025 85.8% Employee Engagement Score in 2020 and targeted at 88.0%
in 2022 7.2% overall turnover rate in 2025 5% talent turnover rate in 2025
GOVERNANCE 100% acknowledgement and communication of Code of Conduct to
subsidiary, employees and suppliers/contractors by 2025 100% employees at all levels are trained on risk management by
2022 Maintain market share for industrial development at 32% 90% customer satisfaction score in 2021
BUSINESS DIRECTION“Your Ultimate Solution Partner”
Corporate Value
Corporate Value Corporate Value
Corporate Value
Corporate Value
Optimize proportion of waste to landfill and incineration approach by 2025
63
Materiality IssuesEnvironment Dimension
• Water Management• Waste Management• Climate Change• Energy Management• Air Emission• Biodiversity
Social Dimension
• Human Capital Development• Talent Attraction and Retention• Human Rights• Labour Practice Indicators• Occupational Health and Safety• Community Development
Governance/ Economic Dimension
• Codes of Business Conduct• Risk Management• Supplier Chain Management • Customer Relationship Management• Innovation Management• Data Security
WHA Sustainability Development HighlightAppendix
64
Climate Change and Energy Management
Thailand’s Largest Solar CarparkCover a total roof area of 31,000 sq.m. providing for approximately 2,000 vehicles and generate a total electricity of 4.88 MW for the plant’s consumption
Promoting Clean Energy to Our Customers Efficient Unified Operations Center (UOC)
Offers an all-in solar rooftop service package for customers in Thailand including permitting, design and engineering, construction and installation, as well as operation and maintenance throughout the contract period
power and has signed solar power purchase agreement of 300 MW corresponding to 150 tons CO2e GHG Emission Reduction (scpoe2) by 2023
Commit to a long-term target to provide solar
Reduce operating costs and workload of employees whose skills could be potentially developed to perform more complex tasks to support sustainable growth of the Group
Reduce approximately 75.4 tCO2e of direct GHG (Scope 1) per year from reduction of car fuel used in operationMaintain air quality level that complies with the requirements and standards specified in (EIA)
Provide safety to communities and stakeholders
WHA Sustainability Development HighlightAppendix
Environment Dimension
FIABCI -Thai Prix D’ ExcellenceAward 2020
65
Waste Management
Chonburi Clean Energy (CCE)
Advanced waste-to-energy power plant located at WHA Chonburi Industrial Estate 1
Maximum output of 8.63 MW of electricity per year
Converting waste to energy source at 100,000 tons/year
The most advanced technologies in terms of reliability, sustainability, stability and environmental protectionThe first industrial waste to energy facility in Southeast Asia to meet European emission standardsUsing safe and environmentally sustainable waste incineration technology and high standard air emission control systems
Plastic Waste ReductionReduce 20,487
bottles of plastic waste by stop serving plastic
bottled drinking water to its guests
and visitors
Sort N’ Save Project
The Internal Project increase environmental awareness amongst WHA Group’s employees and to explore innovative business platforms under the circular economy concept
4 WHA Industrial Estates received “Eco-Champion level”1 WHA Industrial Estate received “Excellence-Champion level “WHA ESIE1 also received a special Eco-Industrial Town 4.0 Award in the SMART Water category for the first time
6 Eco-Industrial Town Awards at the ECO Innovation Forum 2020
WHA Group received the FIABCI-Thai Prixd’Excellence Award 2020 in the Environmental(Rehabilitation/Conservation) Category for itsClean Water for Planet Project.
WHA Sustainability Development HighlightAppendix
Environment Dimension
30 January 202066
Caring for the Environment
Constructed Wetland Water Treatment Facility Demonstrate the application of Simple Wastewater Treatment to Communities in a sustainable method
Treat waste water with the capacity of 146,000 cubic meters per year
WHA Constructed Wetland Systems, considered a natural technology that is eco-friendly, cost effective and easy to maintain delivered to Pluak Daeng Sub-District Office in Rayong Province.
Benefit to 4,000 individuals, 220 apartments, 125 houses, and 30 local markets in the Pluak Daeng community
Mitigate risk from complaints related to water pollution to the Company
Reduce the organic compound by 80%
CSR Excellence Recognition Award
2020(11 consecutive years)
“Platinum Status” (2 consecutive years)
/
Unwanted water hyacinths from WHA ESIE’s wastewater polishing pond was taken by communities on a monthly basis without charge to for producing and selling straw woven baskets
WATER HYACINTH PROJECT
Benefit to community generate income, save cost from purchasing such water hyacinths that is approximately 80-100 Baht per bundle or 100 strands, and have a secure source of raw materialSave WHA ESIE’s cost on contractor expenses for removing such water hyacinths 15,000 Baht per monthSupport this business by purchasing 300 woven baskets from the local community to makeuse as new year gifts in 2021 contributed to 120,000 Baht of income to the communityProvide the community with dryers that cost altogether 50,000 Baht to further improve thewoven basket’s quality
WHA Sustainability Development HighlightAppendix
Social Dimension
30 January 2020
WHA Sustainability Development HighlightAppendix
67
Customer Relationship Management
Governance and Economic Dimension
2020 : 89%Customer Satisfaction Scoreincreased from 87% in 2019
Code of Business Conduct100% of employees have been communicated on the Code of Conduct
Data Security0 Number of identified leaks, thefts, or losses of customer data
Smart Business Solutions
Innovation management
Risk Management100% of employees at all levels are trained on risk management by 2022
Group Structure – Operating CompaniesAppendix
WHA KPN Alliance Central WHA Alliance
WHART
NAV per unit –THB 10.80/1
Paid-Up Capital–THB 25,059.9 mm
Total Asset–THB 42,595.0 mm
WHABT
NAV per unit –THB 10.67/1
Paid-Up Capital–THB 1,922.8 mm
Total Asset–THB 2,712.4 mm
15.00% 15.00%
WHA Daiwa Logistics
Property
WHA Infonite
Registered – THB 400 mm
Paid-up – THB 400 mm
WHA Industrial Development PCL.
Registered – THB 6,000 mm
Paid-up Cap – THB 3,882 mm
98.54%
97.67%
Core Business
WHA Corporation PCL
Registered – THB 1,567.8 mm
Paid-up Cap – THB 1,494.7 mm
WHAUP/2
Registered – THB 3,825 mm
Paid-up Cap – THB 3,825 mm
70.00%/2
Property Funds and REITs
HPF
NAV per unit –THB 9.21/1
Paid-Up Capital–THB 4,572.2 mm
Total Asset–THB 4,468.2 mm
22.95%/2
HREIT
NAV per unit – THB 9.08/1
Paid-Up Capital–THB 7,441.2 mm
Total Asset–THB 11,488.6 mm
15.00%/2
JV Collaborations
Gheco-One
Glow IPP
Houy Ho Power
GNLL 2
Gulf Solar
WHA Gunkul
BPWHA1
JV Collaborations – Utilities & Power/2
64.97% 49.99%
50.99%
35.00%
5.00%
12.75%
25.01%
25.01%
75.00%
25.01%
Eastern Seaboard
Clean Energy
33.33%
Remarks:
/1 NAV per unit as of Dec 31, 2020
/2 Held by WHA Industrial Development PCL.
Genesis Data Center
33.33%
Gulf VTP Gulf TS1-4 Gulf WHA MT
25.01% 25.01% 35.00%
15.00%
WHA Industrial Zone Nghe An
Joint Stock Company/2
BIG WHA
49.00%
Eastern Seaboard
Industrial Estate
99.00%/2
SUPERNAP Thailand
60.00%/2
WHA Industrial Estate
Rayong
60.00%/2
68
WHA KWS Alliance
50.00%
WHA TUS
51.00%
Shareholding Information / Board of DirectorsShareholding Information/1
Top 10 Shareholder/1
Board of Directors and Management
Appendix
Remarks: /1 Shareholder information as of May 10, 2021/2 Major shareholder holds 45.5% of the total outstanding shares while parts of major shareholders shares are hold via UBS AG, Singapore Branch.
69
45.5%
23.3%
15.1%
16.1%
Major Shareholders Local Retail
Local Institution Foreign Retail/Institution
Board of Directors
Ms. Jareeporn JarukornsakulChairman of Board of DirectorsGroup Chief Executive Officer
Mr. David Richard NardoneVice Chairman of Board of DirectorsChief Executive Officer- Industrial Business
Mr. Vivat JiratikarnsakulDirectorChief Operating Officer-Industrial business
Independent Directors
Management
Ms. Jareeporn JarukornsakulGroup Chief Executive Officer
Mr. David Richard NardoneChief Executive Officer- Industrial Business
Mr. Vivat JiratikarnsakulChief Operating Officer-Industrial business
Mr. Narong Kritchanchai/4
Chief Legal Officer
Mr. Somsak BoonchoyreungchaiChief Accounting Officer
Mr. Natthapatt Tanboon-ekChief Financial Officer
Mr. Jakrit Chaisanit/3
Chief Operating Officer-Logistics businessMr. Krailuck Asawachatroj Chief Strategic Officer and Chief Financial Officer
Mr. Chakkrit ParapuntakulIndependent DirectorMember of the Audit Committee
Dr. Kritsana SukboonyasatitIndependent DirectorMember of the Audit Committee
Dr. Apichai BoontherawaraIndependent DirectorMember of the Audit Committee
Mrs. Anchalee ChavanichIndependent DirectorChairman of the Audit Committee
Mr. Arkrapol PichedvanichokIndependent Director
Dr. Anuchit AnuchitanukuIndependent Director
Prof. Dr. Kamphol PanyagomethIndependent Director
Lt. Gen. Dr. Prachaya ChalermwatIndependent Director
Shareholder No. of Share %
1) Ms. Jareeporn Jarukornsakul/2 3,234,438,569 21.6%
2) Ms. Chatchamon Anantaprayoon/2 1,238,976,105 8.3%
3) Thai NVDR Co., Ltd. 834,421,435 5.6%
4) Mr. Chaiwat Phupisut/2 619,670,854 4.2%
5) Ms. Supitchaya Phupisut/2 619,400,000 4.1%
6) UBS AG SINGAPORE BRANCH/2 580,851,722 3.9%
7) STATE STREET BANK EUROPE LIMITED 502,647,844 3.4%
8) WHA Holding Co., Ltd./2 493,500,000 3.3%
9) THE BANK OF NEW YORK MELLON 390,230,770 2.6%
10) นิต ิโอสถานุเคราะห์ 375,238,190 2.5%
/3 Replaced by Mr.Pajongwit Pongsivapai, effective 1 Aug 2021 onwards/4 Replaced by Ms.Natjakorn Chainit, effective 20 Sep 2021 onwards
AppendixSelected Logistics Customers
CONSUMER GOODS
DANGEROUS GOODS
FOOD CHAINAND PET FOOD
HEALTHCARE
AUTOMOTIVE
THIRD PARTY LOGISTICS (3PL)
AIRCRAFT MANUFACTURING
E-COMMERCE
70
Selected Industrial CustomersAppendix
71
THANK YOU
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IR ContactPhone: +66 2 719 9555 #241
E-mail: [email protected]
Website: www.wha-group.com