Hemaraj Land and Development Public company limited Result Q4-2013 - - PowerPoint PPT Presentation

24 March 2014

Result Q4-2013

“The World Class Developer in Thailand”

Hemaraj Land and Development

Public company limited

“The World Class Developer in Thailand”

24 March 2014 2

Our Development Business

I. Industrial Estates

a) 8+ Industrial Estate, 40,624 rai (16,250 acres, 6,500 hectares) b) 615 Distinct Customers, 933 total Land or Factory Contracts

II. Utilities

a) Industrial Estates Management b) Water and Waste Water Treatment c) Other Utilities & Services

III. Power

a) Small Power Producer (SPP) Cogen Gas, Independent Power Producer (IPP) Gas and Coal, Renewable Hydro and Others. IV. Property a) Ready Built Factories for Rent b) Hemaraj Logistics Parks for Rent c) Hemaraj Property Fund d) Selective Property

“The World Class Developer in Thailand”

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Hemaraj’s site locations

“The World Class Developer in Thailand”

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Hemaraj Eastern Seaboard Industrial Estate and Eastern Seaboard Industrial Estate

 Estate Specialization:

• Auto Manufacturing and

Auto Parts:

 Major Auto Production; Ford, Mazda, GM, Suzuki ,SAIC,15 of top 25 global Automotive Suppliers.  181 Automotive customers with 309 automotive contracts.  800,000 vehicles and kits production by 2016 in ESIE & H- ESIE per annum, 25% -30% of Thailand Production. (Source: OEM’s, Intelligence Automotive Asia, Internal)

ISO 9001 & 14001Certified

 Key Automotive Customers:

• Automotive Brands:



Ford



Chevrolet



GMC



Holden



Mazda



Suzuki



MG

• I. Industrial Estate Development

“The World Class Developer in Thailand”

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Eastern Seaboard Industrial Estate (Rayong)

 Board of Investment Zone III (Dec 2014)  Total Area 9,142 rai (3,657 acres or 1,463 hectares)  10 Phases including Free Zones developed or under (Phase 9 and 10) development to date  291 New Customers, 475 Contracts to date  Customer Investment > US$ 8 billion  To Bangkok 117 km., to Laem Chabang Port 30 km.  A Joint Venture with Siam Food Products Plc

ISO 9001 & 14001Certified

“The World Class Developer in Thailand”

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 Board of Investment Zone II and Zone III (Dec 2014)  Total Area 8,113 rai (3,245 acres or 1,298 hectares)  Phase 1-5 developed 7,538 rai (3,015 acres or 1,206 hectares), including HLP2 and HLP3 & Phase 6 completing development 575 rai (230 acres or 92 hectares)  84 New Customers, 136 Contracts to date  Customer Investment > US$ 5.5 billion  To Bangkok 112 km., to Laem Chabang Port 27 km.  Direct Highway 3138 Access on Two Sides and Adjacent to ESIE Expansion Area  Chonburi Power (Gulf/Mitsui) 2,500 MW IPP power plant operate in 2021.

ISO 9001 & 14001Certified

Hemaraj Eastern Seaboard Industrial Estate

New Ford Plant

“The World Class Developer in Thailand”

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 Board of Investment Zone III (Dec 2014)  Total Area 3,548 rai (1,419 acres or 568 hectares)  Strategically located adjacent to the National Petrochemical Complex at Map Ta Phut, Rayong  40 New Customers, 52 Contracts to date  Customer Investment > US$ 5.5 billion  To Bangkok 155 km., Map Ta Phut Port 2 km.

Hemaraj Eastern Industrial Estate (Map Ta Phut)

 Estate Specialization:  Chemical, Petrochemical, Steel, Cogeneration Power  Key Customers:  PTT Globlal, PTT Phenol, PTT Asahi, PTT Glycol, GPSC, HMC Polymer, Siam Mitsui PTA, MC Towa, SUS (Nippon Steel), SYS, Glow SPP, NS Bluescope Steel, Bluescope Steel , NSGT, Linde

ISO 9001 & 14001Certified

Petrochemical Cluster

“The World Class Developer in Thailand”

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Hemaraj Chonburi Industrial Estate

 Board of Investment Zone II  Total area 3,885 rai (1,554 acres or 621 hectares)  78 New Customers, 112 Contracts to date  Export Processing Zone  Customer Investment > US$ 2.5 billion  To Bangkok 110 km., to Laem Chabang Port 25 km.  Estate Specialization:  Electronics, Steel, Auto Parts, Power, Others  Key Customers:  GJS, Tata Steel, Glow IPP, Kitagawa, Kyoden, Honeywell, Waste Management Siam, B-Grimm Power

ISO 9001 & 14001Certified

Glow IPP

“The World Class Developer in Thailand”

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Hemaraj Saraburi Industrial Land

 Board of Investment Zone II  Total area 3,619 rai (1,448 acres or 579 hectares), excluding Phase 2 not developed.  82 New Customers, 98 Contracts to date  70 km. North of Bangkok, to Laem Chabang Port 150 km.  Customer Investment > US$ 2.5 billion  Estate Specialization:  Building Material, Electronics, Consumer, Cogeneration Power, Others.  Key Customers:  Siam Fiber Glass, Nong Khae Cogeneration, Air Liquide, Michelin, CPACC, Siam Gypsum, Brilliant Precision, UMI Laufen, Siam Guardian Glass, Fujikoki, Maspro, Hygente, Seki Corp., Shibakawa, F.T.N., TS Tech, Jonan

• F. Tech, IDEC, World Quality

“The World Class Developer in Thailand”

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Hemaraj Rayong Industrial Land

 Board of Investment Zone III (Dec 2014)  Total Area 3,438 rai (1,375 acres or 550 hectares)  22 km. from Map-Ta-Put deep seaport, to Bangkok 150 km.  34 New Customers, 45 Contracts to date  Customer Investment > US$ 2 billion  Estate Specialization:  Light Chemical, Building Material, Plastic, Consumer Products, Rubber, Others.  Key Customers:  Electrolux, Nawaplastic, Siam Guardian Glass, Michelin, Rayong Cogen, Thai Herrick, Caterpillar – Underground Mining Caterpillar – Medium Tractor

Caterpillar Factory

“The World Class Developer in Thailand”

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Number of Customers by Industry Total Thru 2013 = 615 New Customers

= 933 Contracts

Last 8 Quarters, 216 Contracts – 75 Automotive

Auto 35% Building Material 8% Consumer 14% Electronics 7% Logistics 4% Others 13%

Petrochemical

10% Steel/Metal 9%

“The World Class Developer in Thailand”

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Number of Customers by Country Total Thru 2013 = 615 New Customers

= 933 Contracts

Last 8 Quarters, 216 Contracts – 95 Japanese

Taiwan 2% Malaysia 3% Singapore 2% India 2% China 3% Korea 2% Other Asia 3% Australia 5% Japan 38% Thailand 20% Europe 11% USA 9%

“The World Class Developer in Thailand”

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• II. Utilities

Market Position: II(a). Industrial Estate Utilities



Provide raw water, potable water, clarified water, wastewater treatment, and industrial estate maintenance services to industrial estate customers.



Unique exposure to petrochemical, steel, automotive, power and major utility users with highest revenue in industry.



Utility assets owned by developers ensure recurring income. II(b) Water and Waste Water Treatment



Hemaraj Clean Water (HCW) 100% Baht 645 Million Registered Capital to operate Potable & Clarified Water.



Hemaraj Water 100% owned by HCW. II(c) Other Utilities & Services



Eastern Seaboard Environmental Complex, Fees & Rental from Waste Management.



Eastern Pipeline Services, Baht 316 million Investment (Q4’13)



H-Construction Management and Engineering (HCME).

*excludes SIL/RIL

“The World Class Developer in Thailand”

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III Power

Market Position: 

GHECO ONE, a Glow (GDF Suez Energy International) Hemaraj joint venture IPP (660 MW coal) Baht 42 Billion Project, with 35% paid Hemaraj shareholding (Baht 5.6 billion) Commercial Operation Date (COD) since 19 August 2012.



Houay Ho Laos hydro project (152 MW.) Minority Share (12.75%) in operation with Glow acquired in Q2’2009.



GJP NLL (126 MW.) the 1st SPP joint venture with GULF JP, with 25.01% Hemaraj (Baht 360 million paid) shareholding with COD 1 May 2013.



Potential 8 + Cogen SPP (126 MW each) additional power projects with 25.01% Equity

• ption in 5 Industrial Estates operating in 2016 to 2020.

Growth Prospects: 

Increase industrial SPP power cogeneration projects.



Renewable power projects.

Competitive Advantage: 

Captive industrial estate market for SPP Power expansion and new locations.



Local partner for international power experts in IPP, Hydro, (Glow GDF Suez), SPP bids (Gulf-J-Power Japan) and Gulf-International Partner

• III. Power

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• IV. Property Development

IV(a,b). Ready Built Factories and Logistics Warehouses for Rent

Market Position:



Ready Built Factories under Hemaraj 220 units or 507,546 square meters built to date with cumulative rent of 67 units or 175,274 square meters, and cumulative sold

• f 59 units or 161,117 square meters.



Hemaraj Property Fund (HPF) 104 units or 150,117 square meters with rent of 84 units

• r 122,094 square meters.



Ready Built Factories (RBF) or Build to Suit Factories (BTS) for Rent with flexibility of 450 to 10,000 square meters, with Value Add Engineering and Fitout (HCME). Growth Prospects:



Expanded to H-SIL Saraburi from 2010, H-RIL from 2013, to broaden products , and Hemaraj Ready Built Factory Park @Hi-Tech Kabin from 2013.



Ready Built Factories (RBF), over 25,000 square meters under construction.



Hemaraj Property Fund launch end of 2013 of 150,117 square meters to facilitate accelerated growth.



Build to Suit Factories (BTS) constructed for long term rental, 3 buildings to date leased.



Hemaraj Logistics Park 1 (126,000 square meters), Hemaraj Logistics Park 2 & Hemaraj Logistics Park 3 (217,000+ square meters) available from Q1’2013 and Hemaraj Logistics Park 4 (52,000 square meters) available from Q2’2013, representing total project areas. Initial phases and units available from late 2012 and 2013, add more product variety and to serve manufacturers and Third Party Logistic Providers (3 PL’s) for logistics warehouses.

“The World Class Developer in Thailand”

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IV(a,b). Ready Built Factories and Logistics Warehouses for Rent Competitive Advantage:



Industrial cluster customer base requiring support industry



Flexible to expand or upgrade later enhancing the customer relationship.



Factories and Warehouses for Rental only.

• IV. Property Development

“The World Class Developer in Thailand”

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Hemaraj Logistics Parks for Rent

Hemaraj Logistics Park 2 @ H-ESIE – Free Zone Project Location & Area :  Highway #3138, 27 km from Laem Chabang Deep Sea Port (in Hemaraj Eastern Seaboard Industrial Estate ).  126,000 square meters for Hemaraj Logistics Warehouses for Rent only.  Phase 1 & 2: 51,000 square meters available from Q1’2013 to Q4’2013.  Customers: UTI Logistics, DHL Logistics,Sankyu, Thai VMI

Hemaraj Logistics Park 1 Project Location & Area :

 New Highway 331, 20 km from Laem Chabang Deep Sea Port.  126,000 square meters for Hemaraj Logistics Warehouses for Rent only.  280 rai gross, 220 rai net Sellable/Rentable.  Phase 1+2 of 58,000 square meters available late 2012 and mid 2013.  Customers: Hi-Tech Nittsu, Inoac

Hemaraj Logistics Parks for Rent

“The World Class Developer in Thailand”

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Hemaraj Logistics Parks for Rent Hemaraj Logistics Park 4 - Eastern Seaboard Project Location & Area :  Adjacent to the Eastern Seaboard Industrial Estate (Rayong)  52,000 square meters for Hemaraj Logistics Warehouses for Rent only  Phase 1,2,3: all 52,000 square meters under construction available from Q1’2013 to Q1’2014.  Customers: Inergy, Kerry Logistics, Supavut, Rhino, GAC Thoresen, NHK Antolin. Hemaraj Logistics Park 3 @ H-ESIE – General Zone Project Location & Area :  Highway #3138, 27 km from Laem Chabang Deep Sea Port (in Hemaraj Eastern Seaboard Industrial Estate ).  91,000 square meters for Hemaraj Logistics Warehouses for Rent only.  Phase 1: 19,000 square meters available from Q1 2013.

Hemaraj Logistics Parks for Rent

“The World Class Developer in Thailand”

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• IV. Property Development

IV(d). Selective Property 

Condominium



Office for Rent



Integrated Property

“The World Class Developer in Thailand”

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FINANCIAL

“The World Class Developer in Thailand”

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

2012 GDP growth actual 6.5 %**



2013 GDP growth actual 2.9%



2014 GDP growth projected 2.0% to 4.0%



Application Approved by the Board of Investment (Total Investment) 2013 were 2,016 projects and value of Baht 1,027 billion.

Thailand Macro View

** Source from National Economic and Social Development Board (NESDB), ADB, World Bank, Bank of Thailand, Internal, Various.

Total Exports 5,851,371 5,194,589 6,113,335 6,707,988 7,082,490 6,916,439

• 2%

Total Imports 5,962,482 4,601,982 5,856,591 6,982,719 7,813,061 7,615,829

• 3%

Imports Capital Goods 1,151,848 1,025,990 1,223,881 1,484,699 1,905,427 1,781,928

• 6%

Import Raw Materials and Intermediate Goods 3,905,937 2,832,378 3,596,977 4,110,518 4,408,671 4,292,284

• 3%

Source: Bank of Thailand 2008 2009 2010 Baht (Millions)

% Gro wth (12-13)

2012 2011 2013

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Thailand Automotive Industry 1.

Auto Consolidation & Relocation from Japan, Australia, USA, Others for Asia Pacific Market Access.

2.

Auto Exports 2013 value Increased 5.3% , 13.81% of Thailand Exports**.

3.

Auto Exports 2013 volume Increased by 7% respectively.

4.

2013 Auto Production 2,456,291 vehicles compared with 2,428,181 vehicles in 2012, projected 2,480,000 -2,490,000 vehicles in 2014 (#10 Global) .

5.

Vehicle production projected 3,000,000 to 3,200,000 units in year 2015 to 2018**.

Thailand Macro View

Note: * Due to Japan disruption and due to Thailand flood disruption **Source: Thailand Automotive Institute, BOI, Internal and others

Production 1,391,728 999,378 1,645,304 1,457,795 2,428,181 2,456,291 1% Export 775,652 535,596 896,065 735,627 1,020,091 1,094,089 7% Local 614,078 548,871 800,357 796,123 1,435,197 1,330,680

• 7%

Source: Thailand Automotive Institute

2008 2009

Units

2010 2011* % C hange (12-13) 2013 2012

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30 23 32 45 87 110 137 174 139 223 188 175 200 55 61 77 101 121 139 172 181 120 185 161 325 320 6 7 9 13 16 18 22 32 29 29 35 48 56 58 65 83 110 157 180 224 262 211 272 315 359 378

26 26 45 69 91 124 148 156 201 270 381 447 555 649 499 709 701 907 955

200 400 600 800 1,000

Passenger car Pick up and trucks Motorcycle & Others Parts & Accessories

Total Export Value

Note: * Due to Japan disruption and due to Thailand flood disruption Source: Bank of Thailand – January 2014

Automotive % of Total Export

1995 1.87% 2005 8.59% 2010 11.48% 2011 10.16% 2012 12.79% Baht : Billion

AUTOMOTIVE & PARTS 2013 Auto + 5.3% YoY and 13.81% of Exports

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Industrial Estate Land Increasing

1 Rai = 1,600 Sq.m. or 0.4 acres * Include some rental

2007 1,264 rai (202 hectares) (506 acres) 2008 1,621 rai (259 hectares) (648 acres) 2009 144 rai (23 hectares) (58 acres) 2010 930 rai (149 hectares) (372 acres) 2011 1,670 rai (267 hectares) (668 acres)

2012 2,317 rai (370 hectares) (927 acres) 2013 2,200 rai (352 hectares) (880 acres) Ford / Mazda Siam United Steel Ford / Mazda (Expansion) BHP Steel General Motors Siam Mitsui PTA Mitsubishi Chemical GM Expansion Thai Economic Crisis

Maxxis

Glow IPP

• Thai Summit Group
• Siam Mitsui PTA II
• Maxxis II
• MC Towa

560 Rai 607 Rai PTT Phenol 716 Rai 712 Rai 1,264 Rai PTT AN PTT, Thai Summit

1,621 Rai

SUZUKI, Danieli #5 144 Rai Others Economic Crisis 930 Rai Ford Caterpillar

1,670 Rai

#1 Market Share 6 years 2008 to 2013

Mazda Powertrain Chonburi Power

Y2013 !!! 2,200 Rai

2,317 Rai

Summit Auto Thai Summit LingLong Tyres Ford

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78 40 291 84 82 34

615

50 100 150 200 250 300 350 400 450 500 550 600 650 10 20 30 40 50 60 70 80 90 100 110 120

• Cum. Customers

New Customers/Yr.

Hemaraj CIE Hemaraj EIE ESIE H-ESIE HSIL HRIL Contracts/Yr. New customers/Yr.

Hemaraj’s Increasing IE Customer Base

Thru 2013, 615 New Customers, 933 Contracts

2008 : 27 New Customers, 60 New Contracts 2007 : 32 New Customers, 48 New Contracts 2006 : 24 New Customers, 49 New Contracts 2005 : 23 New Customers, 51 New Contracts

2013 : 60 New Customers, 101 New Contracts

2012 : 80 New Customers, 115 New Contracts 2011 : 49 New Customers, 74 New Contracts 2010 : 19 New Customers, 41 New Contracts 2009 : 13 New Customers, 18 New Contracts

80 New Customers 115 New Contracts

Y2012

60 New Customers 101New Contracts

Y2013 !!!

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67,000 68,000 59,000 59,000 69,000 69,000 65,000 61,000 28,000 34,000 40,000 44,000 69,000 79,000 96,000 107,000 43,000 45,000 44,000 44,000 60,000 66,000 79,000 82,000

30,000 60,000 90,000 120,000 150,000 Y2006 Y2007 Y2008 Y2009 Y2010 Y2011 Y2012 Y2013

Raw Water Potable & Clarified Water Waste Water

Industrial Estate Utilities Quantity

* Forecast 2008

Average Cubic meters / Day +12%

from 2012 Avg.

+4%

from 2012 Avg.

• 6%

from 2012 Avg.

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576 661 688 768 968 1,162 1,391 1,569 82 58 167 157 33 20 79 23

658 719 855 925 1,001 1,182 1,470 1,592

200 400 600 800 1,000 1,200 1,400 1,600 1,800

Y2006 Y2007 Y2008 Y2009 Y2010 Y2011 Y2012 Y2013 Industrial Estate Utilities Other Utilities

Million Baht

Total Utilities Revenue

• Industrial Estate Utilities revenue only.
• Excludes power earnings.

* Forecast 2008

204 266

2013 IE. Utilities* +13% YoY

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139,827 152,144 155,132 161,117 106,444 159,038 235,809 23,992 4,074 20,000 40,000 60,000 80,000 100,000 120,000 140,000 160,000 180,000 200,000 220,000 240,000 260,000 280,000 300,000

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

m2 Ready Build Factory Cumulative Sold** Ready Built Factory Cumulative Rent Pre-Leased Hemaraj Property Fund

Ready Built Factories for Rent thru 2013

CUMULATIVE RENT IN SQUARE METERS - RBF

* Excludes Pre-Leased Q4’2013: 5 Units, total 4,074 sq.m. leased from 2014. ** Minimize sales from 2012

2013 + *61,559 sq.m. +26% 2012 + 76,771 sq.m. +48%

297,368 122,094

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16,820 72,145 15,287

• 20,000

40,000 60,000 80,000 100,000 2012 2013

m2

Hemaraj Logistics Parks Rent Pre-Leased

Hemaraj Logistics Parks Warehouses for Rent thru 2013

CUMULATIVE RENT IN SQUARE METERS - HLP

2013 + 55,325 sq.m. +329% 2012 + 16,820 sq.m.

No Pre-Leased in Q4’2013 Pre-Leased in Year 2012 : 3 Units, total 15,287 sq.m. leased from 2013.

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Total Operating Revenue Trend

(Million Baht)

4,692 2,164 3,812 4,231 6,448 8,849

1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000

2008 2009 2010 2011 2012 2013

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(Million Baht)

8,849

Operating Revenue By Business

5,771 1,647 1,012 420 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 2013

Property for sale, 420 Million Baht Rental Property, 1,012 Million Baht Utilities, 1,647 Million Baht Industrial Estate, 5,771 Million Baht

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3,973 5,771 1,496 1,647 723 1,012 257 420

1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000

2012 2013 Property for sale +63% Rental Property +40% Utilities +10% Industrial Estate + 45%

(Million Baht) 6,448 8,849

+37%

Operating Revenue By Business

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% to Total Operating Revenue

Improving Operating Profit Margins

* EBITDA included gain on sale and lease under financial lease from property fund. ** Adjusted gain on sale and lease under financial lease from property fund net of reserve.

44% 48% 36% 43% 46% 48% 37% 36% 34% 36% 41% 69% 37% 36% 34% 36% 41% 43% 0% 10% 20% 30% 40% 50% 60% 70% 2008 2009 2010 2011 2012 2013

Gross Margin EBITDA Margin * Adjusted EBITDA Margin **

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Improving Operating Income

Million Baht

Total Net Income

*2007 In-House

• From 2011, the financial statements are based on new standards by the Federation and Accounting Professions.

1,315 474 798 780 2,107 3,203 20 62 418

• 244

178

• 323

8 39

1,342 575 1,216 537 2,285 4,338

• 500

500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 5,000 2008 2009 2010 2011 2012 2013

Normalized Net Income (NNI) Foreign Exchange Unrealized Translation Gain/Loss

• Extra. Items

Hemaraj Property Fund after reserve,income tax and minority interest

1,459

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2,107 3,203 178

• 323

1,459

• 250

250 750 1,250 1,750 2,250 2,750 3,250 3,750 4,250 4,750 2012 2013

Hemaraj Property Fund after reserve,income tax and minority interest 100% Foreign Exchange Unrealized Translation Gain/Loss

• 174%

Normalized Net Income (NNI) 52%

(Million Baht) 2,285 4,338

+90%

Total Net Income

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Balance Sheet Highlights

Baht: million

Assets

*2007 In-House

• From 2011, the financial statements are based on new standards by the Federation and Accounting Professions.

2,356 2,592 3,949 4,444 5,434 5,509 5,319 5,729 6,397 7,452 9,111 11,031 400 560 797 929 954 1,035 1,144 1,190 1,180 1,438 3,611 3,992 465 708 801 949 776 890 930 661 438 313 117 811 790 987 1,125 2,405 4,661 1,988 1,152 1,530 1,457 3,806 4,220 870 464 337 288 234 220 301 632 3,624 4,471 7,031 8,515 795 762 762 725 707 692 733 2,060 2,060 766 276 158 1,105 1,003 1,092 1,150 575 932 910 3,517 3,994 1,694 4,780

5,680 7,061 8,062 8,960 11,453 13,897 13,712 13,680 18,715 20,010 26,308 33,434

4,000 8,000 12,000 16,000 20,000 24,000 28,000 32,000 36,000 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Industrial Estate Other Land RBF and Rental Assets Residential Other Assets Investment ( Mostly Power) Commercial Cash Deposit at Bank Cash

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Balance Sheet Highlights

Baht : million

Liabilities and Equity

*2007 In-House

*New Bond Q1’2013, 10 years 5.5% fixed, Baht 2.5 Billion.

• From 2011, the financial statements are based on new standards by the Federation and Accounting Professions.

2,087 4,529 5,240 5,570 7,085 7,618 8,138 8,458 9,139 9,129 11,040 14,656 2,802 1,161 1,662 2,355 3,230 4,371 3,454 4,023 2,011 942 1,641 3,091 6,000 7,500 9,500 10,838 791 1,371 1,160 1,035 1,138 1,908 2,120 1,199 1,565 2,439 4,127 4,849

5,680 7,061 8,062 8,960 11,453 13,89713,71213,680 18,71520,010 26,308 33,434

4,000 8,000 12,000 16,000 20,000 24,000 28,000 32,000 36,000

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Total Shareholders Equity Interest Bearing Bank Debt Baht Bonds Other Liabilties

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Balance Sheet Highlights

*2007 In-House

• From 2011, the financial statements are based on new standards by the Federation and Accounting Professions.
• Note: Net Interest Bearing Debt to Equity = (Interest Bearing Debt-Cash)/Total Equity

Net Debt/ Equity = (Total Liabilities – Cash) / Total Equity (Equity + Minority) Debt to Equity = Total Liabilities/Total Equity Total Equity = Equity + Minority

Leverage Ratio

Net Debt/Equity Target < 1.3 : 1

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Summary for 2013

Industrial Estates



Industrial Estate Sales were 2,200 rai (880 acres or 352 hectares), with 101 contracts, 60 new customers and 41 project expansions from existing customers.

Utilities



The volume of Industrial Estate Utilities in 2013 increased by 4% from prior year and 13% by value.

Properties



Ready Built Factories in 2013 Rental Growth 26% or 61,559 square meters from end Year 2012 balance excluding 4,074 square meters pre-leased.



Hemaraj Logistics Parks for Rent in 2013, rental of 55,325 square meters

Power



GJP NLL (1st SPP): Hemaraj completed 25.01% shareholding in 1st SPP 126 MW power project in GJP NLL, operated COD May 2013. Hemaraj’s equity investment in this project is Baht 360 million.

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Outlook for 2014 and Beyond

Industrial Estates:



Complete Hemaraj Eastern Seaboard Industrial Estate (H-ESIE) Phase 6 of 575 rai (230 acres or 92 hectares).



Develop Hemaraj Chonburi Industrial Estate II (H-CIE II) of 632 rai (253 acres or 101 hectares).



Introduce Hemaraj #8 Industrial Estate of 3,200 Rai in late 2014.



Industrial Estate Land Sales Budget 2014, 1,600 rai (640 acres or 256 hectares), 70 contracts, 45 new customers.

Utilities:



Utilities demand of average 270,000 cubic meters per day in 2014 of industrial water and waste water treatment with projected revenue increase 14% per annum.



Projected 2015 Industrial Estate Utility Revenue of Baht 2.0 billion.

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Outlook for 2014 and Beyond

Power:



GHECO-ONE: Hemaraj’s total investment of Baht 5.6 billion operated since August 2012. The Hemaraj average earning are projected at normal run rate of Baht 1.2 billion per annum from 2014 to 2016, reduced by 10% from 2017 to 2020 due to no coal margin.



To participate in 8 or more SPP power projects with 25% share options.

Property:



Ready Built Factory: Projected net rental to increase by 25%, or 70,000 net square meters for 2014.



Hemaraj Logistics Parks: Projected rental space increase of 40,000 net square meters for 2014

“The World Class Developer in Thailand”

24 March 2014 42

Q & A