WHA Corporation PCL. Opportunity Day. Q Result. Your Ultimate Solution Partner

Transcription

1 WHA Corporation PCL Opportunity Day Q Result Your Ultimate Solution Partner 1

2 WHA Group Disclaimers The information contained in this presentation is for information purposes only and does not constitute an offer or invitation to sell or the solicitation of an offer or invitation to purchase or subscribe for share in WHA Corporation Public Company Limited ( WHA and shares in WHA, shares ) in any jurisdiction 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 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 and its directors. You are cautioned not to place undue reliance on these forward looking statements, which are based on the current view 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-looking statements, on the basis of any subsequent developments, information or events, or otherwise. These statements can be recognized by the use of words such as expects, plans, will, estimates, projects, or words of similar meaning. Such forward-looking statements are not guarantees of future performance and actual results may differ from those forecast and projected or in the forward-looking statements as a result of various factors and assumptions. 2

3 Agenda I. WHA Group Overview II. Summary of Business Performance i) Industrial Estate Business ii) Logistics & Industrial Properties Business iii) Utilities & Power Business III. IV. Financial Performance Recent Developments & Key Events V. Company Outlook Appendix 3

4 WHA Group Overview WHA GROUP AT-A-GLANCE Industrial Development #1 Logistics # industrial estates 711 well known customers profile 46,434 rais total IEs 10,000 rais available for sale 2.1 mm m 2 under owned & managed 200 well known tenants profile 34% Auto 38% Japanese 30% 3PL 30% Japanese Utilities & Power #1 Digital Platform new Utilities 96 mm m 3 in Y 16A 102 mm m 3 in Y 17E 3 data centers with 450 racks Power 350 equity MW in Y 16A 478 equity MW in Y 17E 3 FTTx Services /1 as of Nov 9, 2017 WHA is a SET-100 listed company with a market capital of USD 1,652 /1 mm, and under MSCI small-cap index 4

5 WHA Group Overview Location Map 5

6 WHA Group Overview Group Structure Operating Companies Core Business Property Funds and REITs 98.54% 15.00% 15.00% 15.00% WHA Corporation PCL Registered THB 1,567.8 mm paid-up Cap THB 1,432.2 mm Hemaraj Land and Development PCL. Registered THB 6,000 mm paid-up Cap THB 3,882 mm WHAPF NAV per unit THB /1 Paid-Up Capital THB 9,390.6 mm WHART NAV per unit THB 9.80 /1 Paid-Up Capital THB 9,027.4 mm /2 HREIT /3 NAV per unit THB 8.69 /1 Paid-Up Capital THB 5,479.2 mm / % / % 22.95% 15.00% WHAUP /3 WHA Infonite HPF /3 WHABT Registered THB 3,825 mm paid-up Cap THB 3,825 mm Registered THB 185 mm Paid-up THB 185 mm/ 4 NAV per unit THB NAV per unit THB /1 Paid-Up Capital THB 4,629.5 mm /7 Paid-Up Capital THB 1,966.7 mm /5 JV Collaborations 65.00% 50.00% WHA KPN Alliance 51.00% Central WHA Alliance 99.00% JV Collaborations Utilities & Power / % 12.75% 25.01% Gheco-One 5.00% Houy Ho Power 25.01% Gulf Solar 75.00% Glow IPP GJP NLL WHA Gunkul 25.01% Bowin Clean Energy 33.33% Chonburi Clean Energy WHA Daiwa Logistics Property WHA Hemaraj Nghe An JSC / % 25.01% 25.01% 25.01% Gulf VTP Gulf TS1 Gulf TS2 Gulf TS3 Remarks: /1 NAV per unit as of Nov 9, 2017 /2 Including the 11 th capital reduction /3 Held by Hemaraj Land and Development PCL. /4 Information as of Nov 9, 2017 /5 Including the 8 th capital reduction /6 Including the 2 nd capital reduction /7 Including the 1 st capital reduction 6

7 Summary of Business Performance Q3 17 Operating Performance Achieved additional land sale of 138 rais in Q3 17, totaling 722* rais in 9M rais remaining backlog as of Q customers with 1,073 contracts as of 3Q 17 The 10 new contracts for land sale are in main industry such as petrochemical, electronics, steel and other industries (logistic and service) from 4 different region such as China, Thailand, Japan and other Vietnam Project Received IRC (Investment Registration Certificate) from the Vietnamese government, totaling 498 Ha (c.3,100 rais) for 1 st phase in Nghe An province Land Hand-over will likely be completed by year-end During 9 months, WHA has secured pre-leased area/new contracts for Built-to-Suit, warehouse farm and RBF/RBW totals 103,858 sq.m. 60,631 sq.m. for Built-to-Suit and warehouse farm which mostly located in Bangna-Trad zone 43,227 sq.m. for RBF and RBW There are concrete deals in pipeline, including Third-party Asset Acquisition, amounting to 144,390 sq.m. to be concluded within Q4 17 Utilities business Volume increased by 4% and 6% in Q3 17 and 9M 17, respectively Revenue increased by 9% and 9% in Q3 17 and 9M 17, respectively (excluding one-time excessive charge) The increase was mainly due to new customers especially from new SPPs which mostly use processed water, having higher selling price and margin. Power business Increase in Equity MW from MW to MW due to COD of following SPPs: Bowin Clean Energy achieved COD in Nov-16 Gulf VTP achieved COD in May-17 Gulf TS1 achieved COD in Jul-17 Gulf TS2 achieved COD in Sep-17 GHECO-ONE back to full quarter operation after planned shutdown maintenance in Jan-Feb and expects higher AP during Q2 17-Q4 17 to fully compensate lower AP in Q1 17 Under the initial phase, 3 Data Centers will commence their operations c. 450 racks in Q4 17 in Vibhavadi Rangsit and Bangna-Trad area Initial complimentary services have already started its operation e.g. System Integration FTTx (Local Loop) has commenced its operation, providing fiber optic services in Hemaraj Industrial Estates i.e. HESIE2, HESIE4 and HCIE2 * Including land allocated to RBF/RBW 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. 7

8 Summary of Business Performance Industrial Estate Business - Performance No. 1 by Land Sale with 34% market share from 2008 Q However, in the period 2015 Q2 2017, the company achieved more than 50% market share on the average Our Land Sales Record Industrial Market Share 2,500 2,317 2,200 Unit: rai Year Market (rai) Hemaraj (rai) % Market 2Q % 1Q % 2, , % 1,500 1, , M' ,121 1,043 49% , % ,746 2,200 46% ,872 2,317 21% ,457 1,670 31% , % % ,170 1,621 39% Total 35,579 12,009 34% Source: CBRE and Hemaraj 34% Market Share c. 12,000 rai of Total Land Sales from year 2008 until second quarter of

9 Summary of Business Performance Industrial Estate Business Customer Profile 9 Operating Industrial Estates Our Customers and Contracts 711 Customers 555 Customers 2012 Q3 17 1,073 Contracts 832 Contracts Taiwan 3% Logistics 5% Building Material 7% Electronics 8% Steel/Metal 8% India 2% Australia 5% Customer by Industry Others 15% Petrochemical 9% Customer by Nationality China 3% Korea 2% Other Asia 7% Auto 34% Consumer 13% Japan 38% 3 New Industrial Estates 2012 Q3 17 USA 9% Europe 11% Thailand 19% 9

10 Summary of Business Performance Investment in Vietnam Nghe An Project Overview Granted Investment Registration Certificate for first phase of WHA Hemaraj Industrial Zone of 498 hectares in Nam Cam, Nghe An province Tentative Project Timeline Q2 17 Q3 17 Q4 17 Q1 18 Received IRC (Investment Registration Certificate) from the Vietnamese government Area granted: 498 hectares (c. 3,100 rais) Submitted EIA application and expected completion of EIA approval in 2017 Received master plan approval o o o Expected completion of land handover Commencement of development Initial development of c. 1,000 rais o o Commencement of presale Continue development of the remaining area 10

11 Summary of Business Performance Logistics & Industrial Properties Business - Performance Unit: Sq.m. Group-Owned assets and preleased Asset Under Management 1,975,792 2,115,723 Total 2,123,988 1,108, , ,051 88, , , , , , YTD Logistics Properties Industrial Properties 1,414, ,277 1,414, ,395 Area owned by WHA and its subsidiaries Area sold to WHART, WHAPF and WHABT Location Bangna-Trad km Ladkrabang Rama II Laem Chabang Lum Luk Ka Wangnoi 709, , , ,431 Area owned by Hemaraj and its subsidiaries Area sold to HPF and HREIT Location Chonburi Rayong Saraburi Prachin Buri Area: 2,144 rais Area: 979 rais 11

12 Summary of Business Performance Logistics & Industrial Properties Business - Performance Unit: Sq.m. Pre-Leased / New Contracts 300, , , ,000 During 2017YTD, WHA secured pre-lease area/ new contracts for Built-to-Suit, warehouse farm and RBF/RBW totals 103,858 sq.m. Consist of: 150, ,581 35, , ,390 60,631 sq.m. for Built-to-Suit and warehouse farm which mostly located in Bangna-Trad zone 43,227 sq.m. for RBF and RBW 100,000 50, ,986 25,584 71,981 43,227 31,488 11,739 6,293 40,493 60,631 13,845 6, Q1'17 Q2'17 Q3'17 9M' F There are high potential deals in pipeline, including third-party Asset Acquisition, amounting to 144,390 sq.m. to be concluded within Q4 17 Potential Deal RBF/RBW BTS/Warehouse farm 12

13 Summary of Business Performance Logistics & Industrial Properties Business Tenants Profile Customer by Nationality Customer by Industry 1% Logistics Properties Business 15% 19% 7% 29% 29% Thai Japan Europe Asia(Exclu. Japan, Thai) USA Other 27% 6% 41% 26% 3PL FMCG&Healthcare Manufacturer Other Industrial Properties Business 10% 12% 8% 9% 4% Japan Europe 36% Asia(Exclu. Japan, China) USA Australia China Other 21% 15% Auto&Parts Logistic 5% 39% Electronic 12% Consumer Industrial Service 10% Other 19% 13

14 Summary of Business Performance Logistics Properties - Selected Well-Known Tenant Profile 14

15 Summary of Business Performance Utilities Business Performance Utilities Portfolio Growth Volume and Selling Price Million m 3 / year Baht/ m Baht/ m Baht/ m 3 Quarter Selling Price Growth CAGR % Volume Growth CAGR % M'16 9M'17 3Q'16 3Q'17 Industrial Water Raw Water Wastewater Average Selling Price Potential Demand from New Power Plants On Schedule Water Consumption 2017E 2018E 2019E 2020E 2021E SPP COD 3,800 4,500 m 3 /day GVTP (May 17) Gulf TS4 (Jan 18) GNLL2 (Jan 19) TBA TBA Gulf TS1 (Jul 17) Gulf TS2 (Sep 17) TBA Waste to Energy 1,000 m 3 / day Gulf TS3 (Nov 17) CCE 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. 15

16 Summary of Business Performance Power Business Well-Balanced Portfolio with Strategic Location Portfolio Analysis Conventional Power: Equity MW Secured By Type of Power Plant By Type of Sourcing IPP 53% Coal 43% SPP 47% Gas 53% Hydro 4% Alternative Power: 4.9 Equity MW Secured By Type of Power Plant By Type of Sourcing VSPP 100% Solar 53% WTE 47% Highly reliable off-taker (EGAT) /1 Indust rial Users, 5% EGAT / PEA/ MEA, 95% Client Profile Maturit y 20 Years, 90% 2016 Long-maturity Portfolio Maturit y < 20 Years, 10% Matur ity 20 Years, 100% Additional Incoming Project in Portfolio Summary Project Name Type JV Partner Location Operating Phase Contracted Capacities (MW) WHAUP Portion Equity MW Gheco-I IPP Coal Glow Map Ta Phut IE % Q3 12 Glow IPP IPP Gas Combined Cycle Glow HCIE % 35.7 Jan-03 Houay Ho Power IPP Hydro Glow Lao PDR % 19.4 Sep-99 GJP NLL SPP Gas Co-gen Gulf JP HRIL % 30.6 May-13 Gulf Solar VSPP Solar Gulf HLP1, HCIE, HESIE, ESIE % 0.1 Jun-14 Jan-15 WHA Gunkul VSPP Solar Gunkul Bangna and Ayudthaya % 2.5 Apr Jul-14 BGWHA-1 SPP Gas Co-gen B Grimm HCIE % 30.3 Nov-16 GVTP SPP Gas Co-gen Gulf MP ESIE % 32.5 May-17 GTS1 SPP Gas Co-gen Gulf MP ESIE % 32.5 Jul-17 GTS2 SPP Gas Co-gen Gulf MP ESIE % 32.5 Sep-17 GTS3 SPP Gas Co-gen Gulf MP HESIE % 31.3 Nov-17 Construction Phase Total 2, GTS4 SPP Gas Co-gen Gulf MP HESIE % 31.3 Jan-18 GNLL2 SPP Gas Co-gen Gulf MP HRIL % 30.0 Jan-19 Development Phase Total CCE VSPP Waste-to-energy Glow& Suez HCIE % Total COD 16

17 Financial Performance Financial Highlights 3Q 17 Total Revenue and Share of Profit : THB 2,150 mm 32% YoY Revenue from Sales of Properties THB 445 mm 40% Mainly from higher selling price of land transfer and sale of Investment Properties to JV. Rental, Service Revenue and Other Incomes Revenue from Sales and Service (Utilities Business) THB 306 mm 34% Mainly from large asset monetization to HREIT and WHART in THB 499 mm 5% Mainly due to decrease in excessive charge YoY basis Share of Profit from Joint Ventures THB 563 mm 156% Mainly due to additional 4 SPPs which commenced its operation from Nov 16 onwards resulting in 447 Equity MW as of 3Q 17. Interest Expenses THB 406 mm 35% Substantially decrease in interest expense from 1. Loan repayment of THB 5,000 mm in early Apr 17 from WHAUP s IPO proceeds. 2. Bond repayment of Hemaraj of THB 2,300 mm in Jul Loan refinancing by bond issuance of THB 4,000 mm under WHAUP having lower cost of fund from 4.20% to 3.33% in Sep 17 Net Profit Attribute to Owners of the Parents THB 506 mm 1088% Good performance quarter due to 1. Higher share of profit from strong performance of power business. 2. Higher profitability from industrial estates business. 3. Low interest expense. Remark: Power & Utility Businesses were full year performance comparing to WHAUP, which was partial consolidation 17

18 Financial Performance Overall Performance 3Q 17 PERFORMANCE + 30% Unit: THB mm + 30% + 32% + 46% + 214% + 1,088% OVERALL HIGHLIGHT Total revenue increased 13% from 3Q 16 to THB 1,586 mm in 3Q 17, mainly due to the fact higher selling price of land transfer in 3Q 17 compared with 3Q 16, sale of investment property to JV and right of way charged in Hemaraj IE. Share of profit from JVs 3Q 17 increased by 156%, compared with 3Q 16 as B.Grimm Power, Gulf VTP, Gulf TS1 and Gulf TS2 have commenced its COD in Nov 2016, May 2017 July 2017 and Sep 2017, respectively adding our portfolio up to 447 Equity MW. Moreover, there was unrealized FX gain amount of THB 120 mm during this quarter. EBITDA increased by 46% YoY to THB 1,264 mm in 3Q 17, resulting from an increase of share of profit of power business in 3Q 17 and achieved B.Grimm Power, Gulf VTP, Gulf TS1 and Gulf TS2 COD on planned schedule of 128 equity MW. Net profit attributable to owners of the parent increased to THB 506 mm in 3Q 17 or increase at the rate of 1,088% YoY mainly from an increase of total revenue and share of profit and decrease of financial cost after WHAUP s loan refinancing, hemaraj s bond repayment and loan repayment in 2Q'17 from WHAUP s IPO proceed. 18

19 Financial Performance Profitability by Business 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 RENTAL PROPERTY BUSINESS Real GPM before PPA of 3Q 17: 58% (3m), 58% (9m) SALES OF PROPERTIES BUSINESS Real GPM before PPA of 3Q 17: 53% (3m), 58% (9m) Rental and service income of WHA decreased by 32%, while RBF/RBW from Hemaraj decreased by 36% in 3Q 17 from 3Q 16 as a result of large assets monetization into HREIT amounting to 261,314 sqm in 4Q2016. OTHER REVENUES Hemaraj sold investment estates amounted to THB 373 mm in 3Q 17, a margin of 62% on genuine operation s level and 45% on consolidated level after PPA. The increase was mainly due to higher selling price of land transfer in 3Q 17 WHA had revenue recognition from assets monetization to WHA Daiwa joint venture equal to THB 59 mm in 3Q 17 The increase in other revenues in 3Q 17 mainly resulted from right of way charged in Hemaraj IE amounting to THB 209 mm Remark: Other revenues consist of property and REIT management fee, dividend income, share of profit from property fund, and other income Unit: THB mm 19

20 Financial Performance Profitability by Business (Con t) 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 UTILITIES BUSINESS Real GPM before PPA of 3Q 17: 46% (3m), 48% (9m) POWER BUSINESS The slight decrease by 5% YoY in income from utilities business was mainly due to lower excessive charge YoY which was compensated by the increase in volume and selling price of utilities by 3.8% and 5.1% respectively from the same period last year Power business performance in 3Q 17 was higher compared to that in 3Q 16 as B.Grimm Power, Gulf VTP, Gulf TS1 and Gulf TS2 has COD in Nov 2016, May 2017 July 2017 and Sep 2017, respectively adding our portfolio up to 447 Equity MW. Moreover, due to the strength of THB currency, there was unrealized gain from FX of THB 120 mm in 3Q 17 Unit: THB mm Remark: Power & Utility Businesses were full year performance comparing to WHAUP, which was partial consolidation 20

21 Financial Performance CAPITAL STRUCTURE BREAKDOWN CAPITAL STRUCTURE Unit: THB mm WEIGHTED AVERAGE COST OF DEBT RETURN ON INVESTMENT As of Q3 17 Weighted Average Interest Rate 4.24% Remark: ROE = Trailing 12 months net Income attributable to parent / Average total equity attributable to owners of the parent ROA = Trailing 12 months net income / Average total asset ROIC = Trailing 12 months NOPAT / Average Invested Capital (IBD and Equity) 21

22 Financial Performance Debt Maturity Profile & Finance Cost DEBT SERVICE FOR EACH PERIOD Unit: THB mm As of 30 Sep 2017 Remaining FINANCE COST Unit: THB mm Remark: Debt principle balance 22

23 Recent Developments/Key Events Recent Developments/Key Events 1 Asset Monetization to WHART WHAPF and WHART s approvals on conversion and plan to acquire the assets from WHA approx. THB 3,090 mm on 13 Jul 2017 Filing Effective: 10 Nov 2017 Asset Transfer: within Dec 2017 HREIT s approval on asset acquisition from Hemaraj not more than THB 1,690 mm on 21 June 2017 Day-1 counting of filing: 21 Oct 2017 Fund Raising Completion: Dec Asset Monetization to HREIT 3 Cash Dividend Cash Dividend: THB per share or approx. THB 699 mm XD: 22 Nov 2017 Dividend Payment Date: 8 Dec 2017 TRIS has announced the company rating at A- Stable outlook on 14 Nov A- Rating initialed by TRIS Remark: The cost of asset sale to REITs shown under non-current asset held for sale is THB 2,230 mm 23

24 2017 Outlook Company Outlook Industrial Estate Business Logistics Business Utilities & Power Business Digital Business Pre-sale target: 1,000 1,400 /1 rais Land transfer target: 1,000-1,100 rais Commencement of Vietnam investment with 1,000 rais development starting from Q4 17 Pre-lease/ new contract area approximately 200, ,000 sq.m. Monetize BTS/warehouse asset to WHART for 84,967 sq.m. with asset value THB 3,090 mm Monetize RBF/RBW to HREIT for 55,131 sq.m. with projected asset value THB 1,690 mm Utilities Business COD of 4 SPPs is expected to add approx. 3-4 million m 3 /yr Incremental demand from both existing customers and new IE customers will add another 3-4 million m 3 /yr The average water tariff increases by approx. 3% Power Business COD of 4 SPPs, 2 SPPs already operated, another 2 SPPs are scheduled in September and November Year-end power generation will reach 478 equity MW Gheco-one expects higher availability payment during 2H17 to fully compensate lower AP revenue in 1Q Data Centers of c. 450 racks will commence its operations in Q Expand FTTx (local loop) facilities in Hemaraj s Industrial Estates Financial Outlook CAPEX: THB 7,000 7,300 mm (2017F) Weighted average cost of funding: < 4.5% Net Gearing Ratio: times (Year-End 2017F) Remark: /1 Some of land sale portion is subject to final negotiation which may deviate from the expected year-end execution 24

25 Company Outlook Financial Outlook FY2017F Target Revenue and Share of Profit : THB 13,000 mm Revenue from Sale of Properties Industrial Land Sale (Industrial Estate Business) Investment Properties Sale (Logistics Business) Rental, Service Revenue and Other Incomes (Logistics Business) Revenue from Sale and Services (Utilities Business) Share of Profit from Joint Ventures (Power Business) High profitability both cash and accounting recognition Divested leasable area 140,000 sq.m. to WHART and HREIT combined (vs. 420,455 sq.m. in 2016) Higher profitability from asset sale to REITs Mainly due to industrial properties sold to HREIT (261,314 sq.m.) Increasing volume and selling price in all products with high profitability More water-intensive users from petrochemical and power customers Improvement of existing MW power business and operation Most recent B-Grimm Power (WHA) COD achieved in Nov 2016 Upcoming MW to be recognized throughout FY2017 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. 25

26 Company Outlook Financial Outlook FY2017F (Con t) Interest Expenses Net Gearing Ratio Net Profit Attribute to Owners of the Parents Substantial low gearing ratio Continuous efforts to lower cost of funding Expected to reduce from 1.70x to c. 1.25x at the end of 2017 All normalized profit with normal size of asset monetization to REITs Higher earnings visibility due to higher recurring income portion Higher profitability by nature of recurring income base and lower interest expenses 26

27 Company Outlook Long-Term Outlook 32% recurring income 2.0 million sq.m. leasable area 8 industrial estates 90 million m 3 /year 320 equity MW 1 international project THB 12,064 mm 35% recurring income 2.3 million sq.m. leasable area 9 industrial estates 102 million m 3 /year 478 equity MW 2 international projects THB 13,000 mm 50% recurring income 3.3 million sq.m. leasable area 12 industrial estates 190 million m 3 /year 620 equity MW > 3 international projects THB 21,000 mm 2015A 2017F 2020F Revenue and Share of Profit 27

28 Company Outlook 5-Year Aspirations 2020 Goals Recurring Income c. 50% NPAT Growth 10%-15% p.a. ROE 18%-20% Gearing Ratio <1.0x Growth Driver Consolidate and Synergize 4 Business Hubs together with Utilizing Our Established Platform Maximize Asset Value and Productivity Expand to Strategic Countries, especially CLMVI countries Expand through Strategic Investment and Acquisition Measurement Recurring Income c. 50% Improvement of Margin Increase revenue and net profit from overseas 28

29 Company Outlook Strategy Industrial Hub Strategy Extend our Leadership as Thailand s No 1 Industrial Estate Developer leveraging Eastern Economic Corridor (EEC) Establish our premium brand in regional countries to capitalize growth opportunities and to diversify our portfolio Expand towards high-value integrated property projects ( Specialized Estates ) Logistics Hub Strategy Further initiate the BTS project into Thai logistics market by utilizing the credentials, expertise and longstanding relationships with all customers Expand to ASEAN Countries and new area including Indonesia, Vietnam, Myanmar, Malaysia and Cambodia by leveraging on group business Capitalize on government policy focusing on high-value industry clusters e.g. multi-temp facilities, Automation Robotics and e-commerce Utilities & Power Hub Strategy Integrated Solutions In Utilities and Power business, expansion to other market segments with worldclass operation and services Expand to strategic regional countries by leveraging on our WHA Group Brand, expertise and customer base Digital Hub Strategy Complete and Roll out services of all 4 Data Centers with higher standard at Tier-3 Be leader in Managed Services with Platform and Data Centers as World-Class Cloud Service provider To become One-Stop Service Data Center Developer and Provider by collaborating with reputable partners focusing on networking strength and cyber security management 29

30 Appendix 30

31 Appendix Industry Outlook EEC (Eastern Economic Corridor) EEC refers to Eastern Economic Corridor. It is a Thailand s Government s initiative designed to put Thailand into a second S-Curve and propel the industries up the value chain by promoting high-tech industrial cluster and utilize on new and existing infrastructure development. EEC has taken effect via enforcements of Special Decree (Section 44) whilst enacting the relevant acts through Council of State and National Legislative Assembly (NLA). Key aspects of EEC include: 1. Industry focus 10 targeted industries 2. Area (zone based) development Chonburi, Rayong and Chanchoengsao 3. Infrastructure development multi-modal transportation network surrounding the areas 4. New Tax Incentives To cover Corporate Income Tax and Personal Income Tax level. Source: BOI, NESDB, Fiscal Policy Office, and MOF 31

32 Appendix Industry Outlook EEC (Eastern Economic Corridor) 1 New Growth Engine: 10 Targeted Industries 2 3 Areas designated for development Biofuel and Biochemical Agriculture and Biotechnology Medical Hub Smart Electronic Next-Generation Automotive Automation and Robotics Food For The Future Affluent, Medical and Wellness Tourism Digital Economy Aviation and Logistics The corridor through Chon Buri, Rayong and Chachoengsao has been designated for development as a high-tech industry cluster, to become Asean's leading economic zone for industrial, infrastructure and urban development The project is aimed to accommodate the 10 targeted industries The EEC will also rely on infrastructure development, including air, land, rai and water links to cut logistic cost The EEC is also set to become a water transport hub, linking the Dawei deep-sea port in Myanmar with Sihanoukville in Cambodia and Vung Tau port in Vietnam Source: BOI, NESDB, Fiscal Policy Office, and MOF 32

33 Appendix Industry Outlook EEC (Eastern Economic Corridor) 3 Combined Public and Private Investment 5 High Priority Projects to start in U-Tapao Airport Expansion of terminal capacity from 3 million to 15 million passengers 1 st phase MRO (Maintenance Repair & Overhaul center) Expansion of 2 nd runway Laem Chabang Port (3 rd Phase) Expansion to support growth Logistics hub and Gateway for Indo-China Move into World s Top 10 port High-Speed Train Connect 3 main airports : Donmuang, Suvarnabhumi and U-Tapao in 1 hour Accommodate 110 million passengers/year Dual-Track Railway Connect 2 major ports : Laem Chabang to Map Ta Phut seaport Motorway Pattaya Maptaphut Saraburi Nakorn Rachasima Bang Yai Kanchanaburi Remark To expedite the process, the Government recently invoked S.44 of Royal Decree to speed up the EIA, Fast-Track Public Private Partnership (PPP) and bidding package which will commence from 2017 onwards 5 33

34 Appendix Industry Outlook EEC (Eastern Economic Corridor) 4 Newly Proposed Tax Incentives Corporate incentives Personal incentives Corporate income tax exemption up to 15 years for qualified technology e.g. biotech, nanotech etc. Exemption of import duty on machinery and essential raw materials used for exports Financial incentives for investment in R&D, innovation or human resources development in targeted industries Maximum personal income tax of 17% for management, Investors and experts Five-year work permit Other incentives Land lease up to 99 years (For State-owned Enterprise Land) Freehold land (For industrial estate developed in private operator) Fast-track EIA 6-9 month public-private-partnership International head quarter (IHQ) and international trading center (ITC) to relax taxation for MNCs 34

35 Appendix Investment in Vietnam Nghe An Project Overview 35

36 Appendix Investment in Vietnam Nghe An Project Overview With 3,200 ha, economies of scale to create industrial clusters Total Development of Industrial Zone and Township Zone in Dong Nam Economic Zone is 3,200 ha WHA Hemaraj Industrial Zone 2 Tho Loc [1,160ha] WHA Hemaraj Industrial Zone 1 Nam Cam [2,040ha] 36

37 Appendix Investment in Vietnam Nghe An Project Overview (Cont d) c. area: 1,160 ha c. area: 2,040 ha 37

38 Appendix Investment in Vietnam Nghe An Project Overview (Cont d) c. area: 1,160 ha c. area: 2,040 ha 38

39 Appendix Shareholding Information / Board of Director Shareholding Information /1 Board of Director and Management 8.5% 17.0% 47.3% Major Shareholders 27.2% Local Retail Local Institution Dr. Somyos Anantaprayoon Chairman of Board of Directors Ms. Jareeporn Jarukornsakul Vice Chairman of Board of Directors Group Chief Executive Officer Mr. David Richard Nardone Vice Chairman of Board of Directors Chief Executive Officer- Industrial Business Foreign Institution Top 10 Shareholder /1 Shareholder No. of Share /3 % Mr. Vivat Jiratikarnsakul Director Chief Operating Officer-Industrial business Mr. Jakrit Chaisanit Director Chief Operating Officer-Logistics business Mr. Arttavit Chalermsaphayakorn Director Chief Financial Officer 1) WHA Holding Co., Ltd. 3,629,083, ) Ms. Jareeporn Jarukornsakul 1,629,989, ) Mr. Somyos Anantaprayoon Major 1,090,894, ) UBS AG HONG KONG BRANCH Shareholder /2 101,400, ) CREDIT SUISSE AG, SINGAPORE BRANCH 321,473, Mr. Krailuck Asawachatroj Director Chief Strategic Officer Mr. Narong Kritchanchai Director Chief Legal Officer Mr. Somsak Boonchoyreungchai Director Director of Accounting Department 6) STATE STREET BANK EUROPE LIMITED 1,431,873, ) Thai NVDR Co., Ltd. 388,720, ) Mr. Sompong Chonkadeedumrongkul 247,160, ) N.C.B.TRUST LIMITED-NORGES BANK ,217, ) Mr. Wut Jarukornsakul 158,500, Dr. Apichai Boontherawara Independent Director Chairman of the Audit Committee Dr. Somsak Pratomsrimek Independent Director Member of the Audit Committee Dr. Kritsana Sukboonyasatit Independent Director Member of the Audit Committee Mr. Chanvit Amatamatucharti Independent Director Remarks: /1 Shareholder information as of May 11, 2017 /2 Major shareholder holds 47.3% of the total outstanding shares while parts of major shareholders shares are hold via UBS AG Hong Kong Branch and Credit Suisse AG Singapore Branch. 39

40 Your Ultimate Solution Partner Automotive Consumer Petrochemical Steel/Metal 40