SC Asset Corp. Public Co., Ltd. · SET:SC

SC Asset Corp. Public — SC Asset Corporation Public Company — FY2019 Earnings Presentation

42 slides from SC Asset Corp. Public's earnings presentation, Feb 25, 2020

  1. Slide 1: Info Meeting FY2019

    INFO MEETING FY2019 25 FEBRUARY 2020 Nuttaphong Kunakornwong - C h i e f E x e c u t i v e O f f i c e r Attapol Sariddipuntawat - C hief Corporate Off icer

  2. Slide 2: Property Market Overview

    2019 PROPERTY MARKET OVERVIEW

  3. Slide 3: Property Market Demand & Supply

    PROPERTY MARKET DEMAND & SUPPLY ABSORPTION RATE 2015 2016 2017 2018 2019 Value (Billion Baht) 32% 29% 33% 33% 25% 1,478 1,457 1,600 1,351 (+9% YoY) (-1% YoY) (+9% YoY) 1,085 996 1,200 677 655 899 (+11% YoY)(+9% YoY) 582 (+3% YoY) 460 420 800 482 339 452 (+6% YoY) 371 (+24% YoY) (-23% YoY) 400 491 49

  4. Slide 4: Absorption Rate

    ABSORPTION RATE Value (Billion Baht) 42% 39% 38% 1,000 34% 35% 30% 32% 31% 28% 30% 25% 23% 25% 27% 26% 23% 25% 24% 20% 750 SDH TH HO CD 500 250 0 '15 '16 '17 '18 '19 '15 '16 '17 '18 '19 '15 '16 '17 '18 '19 '15 '16 '17 '18 '19 Supply & Demand Supply & Demand Supply & Demand Supply & Demand Source : A

  5. Slide 5: Influential Factors Impact on Real Estate Market

    THE INFLUENTIAL FACTORS IMPACT ON REAL ESTATE MARKET ECONOMY BOT POLICY 2019 THAILAND GDP Growth 2.4 % Loan to Value (LTV) Ratio 2018 at 4.2% Source : Bank of Thailand (BOT) 6

  6. Slide 6: Influential Factors Impact on Real Estate Market

    THE INFLUENTIAL FACTORS IMPACT ON REAL ESTATE MARKET NEW MORTGAGE LOAN CONTRACTS ( VALUE) GROWTH RATE The first 11 months of 2018 & 2019 (%YoY) LAN DE D PRO PERTY CONDOMINIUM TOTAL Total Financial Institutions +11.8 % -7.4 % +6.3 % 1 st mortgage contracts* +5.0 % -1.9 % +3.1 % 2 nd and subsequent mo

  7. Slide 7: Housing Transfer Trends by Value (BKK – Vicinities)

    HOUSING TRANSFER TRENDS BY VALUE (BKK – VICINITIES) Year (Million Baht) % YoY Type 2015 2016 2017 2018 2019 2018 VS 2019 SDH 80,074 60,625 61,763 85,343 87,604 3% TW 13,624 11,740 15,396 18,857 20,209 7% TH 65,269 56,655 59,159 74,754 75,949 2% CD 126,804 168,430 161,767 222,740 216,084 -3% Total 28

  8. Slide 8: 2017-2023 Office Market Forecast

    2017-2023 OFFICE MARKET FORECAST Office Supply (Sq.m.) Occupancy rate 92.3% 92.1% 93.0% 93.1% 91.8% 12,000,000 91.4% 90.1% 100% 11,000,000 10,157,928 9,755,928 10,000,000 8,776,958 8,860,307 8,972,528 sq.m. 9,269,428 9,509,428 80% 201,000 9,000,000 240,000 246,500 296,900 8,000,000 221,000 83,349 11

  9. Slide 9: Office Market

    OFFICE MARKET Rental rate (Baht) 1,073 980 1,009 Zone & Grade QoQ YoY YTD 936 877 853 892 CBD Grade A 1.5% 4.7% 6.3% 795 756 CBD Grade B 0.8% 3.8% 5.7% 694 796 715 753 Non CBD Grade A 1.8% 2.8% 4.6% 682 648 727 656 689 Non CBD Grade B 1.8% 3.6% 5.5% 597 631 Total 1.3% 3.7% 5.6% 2015 2016 2017 2018 2

  10. Slide 10: Business Review

    SC ASSET a 2019 BUSINESS REVIEW

  11. Slide 11: 2019 Operating Revenue

    2019 OPERATING REVENUE 2,026 MB +13% 1,800 MB 1,285 MB Net Profit 17,637 MB +14% 15,447 MB 12,341 MB 14,613 MB LANDED 16,771 MB (95%) Operating LANDED Revenue LANDED 11,492 MB 10,811 MB (95%) 11,260 MB +15% 9,012 MB (93%) (73%) (70%) (64%) 2017 2018 2019 (Restated) (Restated) Revenue from Sales Reve

  12. Slide 12: 2019 Gross Profit Margin

    2019 GROSS PROFIT MARGIN GROSS PROFIT = 5,790 MB in 2019 (+12% YoY ) 33.6% 32.8% 61.5% 59.2% 59.7% 47.0% 32.0% 31.5% 2018 2019 (Restated) GP (%) GP Property For Sales (%) GP Rental and Rendering Services (%) GP Consulting and Management Services (%) 12 Note: The company has adopted the new TFRS 15,

  13. Slide 13: 2019 SG&A

    2019 SG&A SG&A = 3,252 MB in 2019 (+15% YoY ) 18.4% 18.4% Admin Expenses 2018 2019 10.1% 10.6% SG&A (MB) 2,839 3,252 Specific Business Tax & Transfer Fee 3.7% 3.8% Operating Rev. 15,447 17,637 Selling Expenses 4.5% 4.0% (MB) 2018 2019 (Restated) (Unit : % to Operating Revenue) 13 Note: The company h

  14. Slide 14: 2019 Net Profit

    2019 NET PROFIT NEW RECORD NET PROFIT 11.6% 11.4% Net Profit Margin 2,026 MB +13% 1,800 MB Net Profit 2018 2019 (Restated) (Loss) gain from fair value adjustment and write-off of investment property (0.7 MB) 112 MB 14 Note: The company has adopted the new TFRS 15, Revenue from contracts with custome

  15. Slide 15: 2019 Financial Position

    2019 FINANCIAL POSITION 31 Dec 18 31 Dec 19 Diff from % Diff (Restated) 31 Dec 18 Tot a l Asset s (MB ) 42,620 45,083 2,463 6% Tot a l Lia b il it ies (MB) 26,381 27,526 1,145 4% Tot a l E q u it ies (MB) 16,239 17,557 1,317 8% ROA (%) 4.44% 4.62% Net Profit / Avg. Total Asset ROE (%) 11.55% 11.99%

  16. Slide 16: Property for Sales

    SC ASSET —— 2019 PROPERTY FOR SALES

  17. Slide 17: 2019 Revenue from Sales by Product

    2019 REVENUE FROM SALES BY PRODUCT NEW RECORD LANDED PROPERTY & SIGNIFICANT GROWTH ON CONDOMINIUM 16,771 MB +15% 14,613 MB 11,492 MB 10,811 MB 11,260 MB +4% 9,012 MB 5,511 MB +45% 3,803 MB 2,479 MB (78%) (22%) (74%) (26%) (67%) (33%) 2017 2018 2019 (Restated) (Restated) Landed Property Condominium 1

  18. Slide 18: 2019 Presales

    2019 PRESALES 15,278 MB 15,022 MB 14,425 MB -4% 10,547 MB 11,317 MB 10,737 MB -5% 4,731 MB 3,705 MB 3,688 MB -0.5% (69%) (31%) (75%) (25%) (74%) (26%) 2017 2018 2019 Landed Property Condominium 18 Note: The company has adopted the new TFRS 15, Revenue from contracts with customers from 1 Jan 19 by a

  19. Slide 19: 2019 SC SDH Market Share

    2019 SC SDH MARKET SHARE 10% 8% 27% No. 1 No. 4 No. 3 in Market Share 20-50 MB in Market Share <5 MB in Total SDH Market Share Source : Agency for Real Estate (AREA) 19

  20. Slide 20: 2019 Projects Launched

    2019 PROJECTS LAUNCHED SU CCE SSFULLY LAUNCHED 9 NEW PROJECTS : 16,205 MB 8 1 LANDED PROPERTY CONDOMINIUM 36% 34% : 7,905 MB (49%) 100% : 8,300 MB (51%) 30% <5MB 5-8MB 8-20MB >300K 20

  21. Slide 21: Ongoing Projects

    ONGOING PROJECTS 51 ONGOING PROJECTS AS OF 31 DECEMBER 2019 PRODUCT TYPE NO. OF PROJECT REMAINING VALUE (MB) % PROPORTION Single Detached House 37 25,900 61% Town House & Home Office 6 2,000 5% Condominium 8 14,400 34% TOTAL 51 42,300 100% 4 3 L anded P ro p erty Pro j ects (66% ) 8 Co n d o m i n i

  22. Slide 22: 2019 Backlog

    2019 BACKLOG BAC KLOG 7,388 MB (LANDED 23% : CONDO 77%) Total Unit Project Value 2021 Ongoing Projects Transfer Period % Unit Sold 35% (Unit) (MB) Onwards LANGSUAN Chambers Cher 252 790 Start Dec 2017 91% Condominium SALADAENG ONE 187 4,250 Start May 2018 76% BEATNIQ 197 4,000 Start Aug 2018 47% 202

  23. Slide 23: Income Property

    SC ASSET a 2019 INCOME PROPERTY

  24. Slide 24: 2019 Revenue from Rental & Services

    2019 REVENUE FROM RENTAL & SERVICES 6 Office Buildings comprised the total rentable space of 119,826 sq.m. with overall occupancy 93% 833 MB 865 MB +4% Consulting and 2 64 Management Services 832 801 -4% Rental and Rendering Services 2018 2019 (Restated) 24 Note: The company has adopted the new TFRS

  25. Slide 25: Dividend Payment

    DIVIDEND PAYMENT Dividends from the Company ’s 2019 Operating Result : Baht 0.19 per share - Cash dividend of Baht 0.19 per share (2018 : Baht 0.16 per share) - Dividend Payout Ratio : 41.79% (2018 : 41.03%) - XD on 30 April 2020 - Payment Date : 21 May 2020 S u b j e c t t o t h e s h a re h o l d

  26. Slide 26: SC Asset 2020 Resilient

    SC ASSET 2020 RESILIENT

  27. Slide 27: Resilient People

    RESILIENT PEOP=

  28. Slide 28: Living Solutions: Finding New S Curve

    ] FOR R § .LWiInG 4 SALE Oy pie SOLUTIONS _ FINDING NEW ’S’ CURVE EXPANDING LOW-RISE

  29. Slide 29: Expanding Low-Rise for Sale

    EXPANDING LOW-RISE FOR SALE

  30. Slide 30: Low-Rise Net Profit and Revenue Growth History 2004-2019

    LOW-RISE _ Nerpronit |" REVENUE TOWERISEIREV) GROWTH HISTORY 2004 - 2019 20,000 2,000 1,500 1,000 704 ’05 ’06 ’O7 *08 ’°O9 10 "HN 712 #713 14 #715 1 (17 ‘18 (‘19 °20 ’21 %22 '23

  31. Slide 31: Low-Rise Revenue

    LOW-RISE REVENUE

  32. Slide 32: New Recurring Income for Rent

    EW RECURRING INCOME FOR RENT _~ N

  33. Slide 33: Diversifying New Recurring Income

    DIVERSIFYING NEW RECURRING INCOME SC EXPEDITION SC ALPHA INC.

  34. Slide 34: Sources of Net Profit

    SOURCES OF NET PROFIT SALE 2023

  35. Slide 35: 35

    35

  36. Slide 36: Ruejai and Platform Club

    2018 ONS) VACVAC) RUEJAI RUEJAI SAINT PLATFORM CLUB

  37. Slide 37: Re-finance

    yuguenuias anuadntustu Re-finance wazauy

  38. Slide 38: 2020 Top-Line Budget

    2020 TOP-LINE BUDGET REVENUE PRE-SALE 17,800 18,000 MILLION BAHT MILLION BAHT SC ASSET ae

  39. Slide 39: Ongoing and New 2020 Projects

    ON GOING PROJECTS Dil PROJECTS TOTAL VALUE 42,300 MB TOTAL PROJECTS 2020 NEW 2020 PROJECTS 3 PROJECTS TOTAL VALUE 16,000 MB SC ASSET TOTAL PROJECTS 64 PROJECTS TOTAL VALUE 58,300 MB

  40. Slide 40: Resilient Target 2020

    RESILIENT PORTFOLIO FOR SALE FOR RENT LIVING SOLUTIONS SC ASSET 2020 os = RESILIENCE RESILIENT TARGET PEOPLE 2020 Revenue #SKYDIVE 17,890 .me Culture Pre-Sale 18,000 MB SC ASSET ph SAS NEW PROJECTS New 13 Projects Total 16,000 MB

  41. Slide 41: Thank You

    THANK YOU Further more information, please visit www.scasset.com or contact IR E-mail : [email protected] Tel : 662-949-2344, 662-949-2969 “Some Statements made in this presentation are forward-looking statements, which are subject to various risks and uncertainties. These include statements with respe

  42. Slide 42: 13 New Projects Launched in 2020

    13 NEW PROJECTS LAUNCHED IN 2020 Launch Product Project Unit Value (MB) Q1 SDH V COMPOUND TIWANON - RANGSIT 450 1,240 450 1,240 Q2 CONDO THE CREST PARK RESIDENCES 429 3,500 SDH HEADQUARTERS VIBHAVADI 6 90 SDH THE GENTRY VIBHAVADI 10 320 SDH BANGKOK BOULEVARD VIBHAVADI 37 620 SDH BANGKOK BOULEVARD RA

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