U CITY PCLu.listedcompany.com/misc/presentation/20200219-u... · U CITY PCL (633) 1,867 7,781 52 292 2,187 26 (3,193) (3,757) (793) (727) NET LOSS FY2018-R Operating Revenue Operating

Prepared by Investor Relations DepartmentU CITY PCL

FY 2019 EARNINGS PRESENTATION19 FEBRUARY 2020

U CITY PCL

Vienna House Mokotow Warsaw


Address: U City Public Company LimitedIR Department20th Floor, TST Tower, 21 Soi Choei Phuang, Viphavadi-Rangsit Rd.Chomphon, Chatuchak, Bangkok, Thailand 10900

Telephone: +66(0) 2273 8623 Fax: +66(0) 2273 8858

Email: [email protected] Website: www.ucity.co.th

This document has been prepared and distributed by the Investor Relations Department of U City Public Company Limited (“U City”) solely for information purposes. It does not represent or constitute an offer, invitation, recommendation or solicitation to trade shares in U City and should not be relied on as such. Some of the information in this document has not been independently verified, and also includes information made available from public sources and other third party opinion or analyst. U City does not monitor or control the content of third party opinion or statements and does not endorse or accept any responsibility for the content or the use of any such opinion or statements. Thus, U City assumes no responsibility and makes no representations with respect to the accuracy and/or completeness of the information described herein. None of U City or any of its agents, or all of their respective affiliates, or representatives shall have any liability (in negligence or otherwise) for any loss howsoever arising from any use of this document or its contents or otherwise arising in connection with this document.

All information contained in this document is presented as of the date indicated within, and U City assumes no duty to confirm, revise or update the information. Certain statements in this document may be deemed to contain forward-looking statements, including the statements included or incorporated with the words "believe", "anticipate", "estimate", "target", or "hope", or that otherwise relate to objectives, strategies, plans, intentions, beliefs or expectations or that have been constructed as statements as to future performance or events. These forward-looking statements are not guarantees of future performance and involve risks and uncertainties that could cause actual results to differ materially from historical results or those anticipated at the time the forward-looking statements are made. Thus, U City assumes no responsibility and makes no representations with respect to the accuracy and/or completeness of the forward-looking statements. U City undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

DISCLAIMER

IR CONTACT

2


CONTENTS

3

Section 1 Financial Performance

Section 2 Operational Performance

Section 3 Business Updates

Section 4 Appendices


KEY HIGHLIGHTS FY 2019

4

• Acquisition of Hotel portfolio in Germanyand Switzerland. Received the operatingleases of 19 hotels (total 2,043 rooms)

• The Customs House (Roi Chak Sam).U City together with the Fine Arts Departmentstarted the process of archaeologicalexcavation, along with recording and studyingthe topography of the site of The CustomsHouse

• Verso International School, a 50:50 JV of UCity and a Hong Kong partner has made thefirst press conference. The school offers apersonalised educational experience designedwith students’ interests and passions at its core

• Mo Chit Land (MCL). All ordinary shares ofMo Chit Land were transferred to Sino-ThaiEngineering and Construction PCL and U Cityreceived the first installment of the purchaseprice of THB 1,300mn on 1 November 2019

+222.5% YoY

+42.0% YoY

Total Revenue

THB 10,145mn

Net Profit

1,867mn

vs

Net D/E Ratio

0.48x

vs

0.55x (31 Dec 2018)

Total Assets

THB 53.5bn

+53.4% YoY

Key Developments in FY 2019

(0.8)% from 31 Dec 2018

Section 1: Financial Performance

Verso International School Perspective Picture The Custom House Perspective Picture

(633)mn (FY 2018-R)


THB mn FY 2019 FY 2018-R % YoY 4Q 2019 4Q 2018-R % YoY 3Q 2019 % QoQ

Total Revenues 10,145.2 6,612.5 53.4% 4,109.1 1,827.4 124% 2,430.9 69.0%

Operating Revenue 7,780.5 6,032.9 29.0% 2,205.3 1,606.4 37.3% 2,201.7 0.2%

Gross Operating Profit (GOP) 4,588.0 3,709.3 23.7% 1,267.5 954.7 32.8% 1,327.7 (4.5%)

SG&A (1) (3,757.3) (2,910.9) 29.1% (1,054.8) (768.1) 37.3% (1,028.4) 2.6%

EBITDA 3,195.4 857.4 273% 2,116.5 358.1 491% 438.8 382%

Share of Profit 292.0 27.0 982% 99.4 36.5 172% (69.0) 244%

Finance Cost (793.3) (834.9) (5.0%) (194.2) (207.0) (6.2%) (204.6) (5.1%)

Net Profit 1,866.9 (633.1) 395% 1,752.2 62.1 2722% (40.2) 446%

GOP Margin 59.0% 61.5% 57.5% 59.4% 60.3%

Operating EBITDA Margin (1) 20.4% 22.8% 19.7% 25.4% 24.0%

EBITDA Margin 31.5% 13.0% 51.5% 19.6% 18.1%

Net Profit Margin 18.4% (9.6%) 42.6% 3.4% (1.7%)

Note: (1) Exclude FX gain/(loss), impairments and Gain from MCL divestment

FINANCIAL PERFORMANCE OVERVIEW

5

PROFIT & LOSS

FY 2019 REVENUE GROWTH CONTRIBUTIONFY 2019 REVENUE CONTRIBUTION BY SEGMENT

* Other revenues and management income

THB mn

THB10,145

mn

HospitalityTHB 7,264mn71.6%

OfficeTHB 324mn

3.2%

Others*THB 2,557mn

25.2%

6,613

10,145

1,618

42 1,872

FY 2018 - R Hospitality Office Others* FY 2019

28.7% 14.9% 273.4%



(633)

1,867

7,781

52

292

2,187

26

(3,193)

(3,757)

(793)

(727)

NET LOSSFY2018-R

OperatingRevenue

OperatingCost

SG&A FXGain/(Loss)

FinanceCost

Deprec. &Amort.

ShareProfit

Tax andOthers

Discont.Opt.

NET PROFITFY2019

FINANCIAL PERFORMANCE OVERVIEW

6Section 1: Financial Performance

JV Siri 306mn

UBM JV 17 mn

AHS 11 mn

VERSO -39 mn

MHG -3 mn

• From overseas loan 531mn

• From BTSG loan 262mn

Vienna House SG&A THB 2,944mn (78%)

• Realised gain 61mn from management of FX transactions

• Unrealised loss 9mn from loan revaluation

Vienna House GOP THB 3,578mn (78%)Thai hotels GOP THB 721mn (16%)

• Gain from sale of investment in MCL 1,559mn

• Interest income 349mn

(THB mn)


BALANCE SHEET & CASH FLOW

7

CAPEX & PROPERTY INVESTMENTS12M CASH FLOW

* Others includes translation adjustment and cash & cash equivalents of subsidiaries which classified as assets held for sale


(THB mn) (THB mn)

47,369 45,710

6,591 7,821

53,960 53,531

31 Dec 18 31 Dec 19

Non-Current Assets Current Assets

-0.8%

29,147 30,542

22,345 18,671

2,468 4,318

53,960 53,531

31 Dec 18 31 Dec 19

Equity Non-Current Liabilities Current Liabilities

-0.8%

893 840

1,480 1,784

2,373 2,624

12M 2018 12M 2019

Investments Capex

CFO before interest payment of THB 1,077mn

(807)

(THB mn) (THB mn)

(12.2%)

(87.8%)

(14.6%)

(85.4%)

(41.4%)

(54.0%)

(34.9%)

(57.0%)

(4.6%) (8.1%)


DEBT STRUCTURE

8

KEY RATIOS

BREAKDOWN BY INTEREST BREAKDOWN BY CURRENCY


Weighted AverageCost of Debt

4.3%

Weighted Average Maturity of Debt

7.3 Years

Current DebtNon-Current Debt

THB 1,252mnTHB 16,343mn

Total Interest Bearing Debt

31 Dec 2019: 17,595mn

31 Dec 2018: 20,344mn

D/E Ratio

31 Dec 2019: 0.58x

31 Dec 2018: 0.70x

Net D/E Ratio

31 Dec 2019: 0.48x

31 Dec 2018: 0.55x

THB 48%

EUR51%

GBP 1%

Fixed Rate9%

Floating Rate91%


CONTENTS

9






1. HOSPITALITY SEGMENT OVERVIEW

10Section 2: Operational Performance

UPCOMING KEYS TIMELINE FROM 2020 TO 2025

BREAKDOWN OF REVENUE BY TYPE & SOURCE (%) OPERATING EBITDA (THB mn) & MARGIN (%)

TOTAL HOTEL KEYS

( ) = no of hotelsNote: All figures above, except for operating EBITDA are based on management accounts which haven’t been subject to eliminations and adjustments

Keys

113 66 95 132 105 59 88 11930

267

357

12380

320 288 216143

333

452

255185

379 376335

11.1%

21.7%

28.3%

16.0% 14.9%

19.8% 18.3%16.2%

1Q '18 2Q '18 3Q '18 4Q '18 1Q '19 2Q '19 3Q '19 4Q '19

Operating EBITDA Thailand Operating EBITDA Overseas

Operating EBITDA Margin

Type 2020 2021 2022 2025 Total

Owned 521 (1) 521 (1)

Leased 96 (1) 568 (3) 730 (2) 80 (1) 1,474 (7)

Managed 2,718 (10) 8,479 (15) 6,845 (8) 18,042 (33)

Total 2,814 (11) 9,047 (18) 8,096 (11) 80 (1) 20,037 (41)8,923 10,076 9,579 9,875 9,915 11,707 11,717 11,749

10,251

16,229 15,583 17,122 16,419 18,508 18,916 20,03719,174

26,305 25,162 26,997 26,334

30,215 30,636 31,786

1Q '18 2Q '18 3Q '18 4Q '18 1Q '19 2Q '19 3Q '19 4Q'19

Operational Keys Pending Keys

65.3% 59.8% 60.5% 58.2% 60.2% 44.5% 42.9% 42.9%

25.5% 28.9% 27.4% 29.5% 29.8%45.5% 46.0% 46.8%

9.2% 11.3% 12.1% 12.3% 10.0% 9.9% 11.1% 10.3%

25.6%19.3% 21.0% 23.6%

29.8%

15.0% 15.8% 18.3%

1Q '18 2Q '18 3Q '18 4Q '18 1Q '19 2Q '19 3Q '19 4Q'19

Owned Operating lease

Manange (including JV) Thai sourced revenue


45.3%

52.5%

64.3% 63.9%61.2%

80.9% 73.8%

72.0%

37.0%

47.0%

53.5% 51.5%

65.7%

73.9%

70.9%

70.2%

34.3%42.0%

49.4%45.7%

61.6%

75.7%70.2%

69.2%

1Q '18 2Q '18 3Q '18 4Q '18 1Q '19 2Q '19 3Q '19 4Q'19

Czech Republic Germany Poland

1.1 HOSPITALITY SEGMENT - OWNED AND OPERATING LEASED HOTELS OVERSEAS

11

REVENUE BREAKDOWN (THB mn) GROSS OPERATING PROFIT (THB mn) & MARGIN (%)

Note: All figures above are based on management accounts which haven’t been subject to eliminations and adjustments. Owned hotels include freehold & financial lease hotels

INDUSTRY OCCUPANCY RATES OF KEY EUROPEAN MARKETS (%)

Sources: Eurostat, STR

HOTEL ADR (THB), OCCUPANCY RATE (%) & REVPAR (THB)

Section 2: Operational Performance

191 296 307 298 159279 290 269

92 166 141 172 109352 350 320

283 462 448 470 268 630 640 589

31.1%40.2% 39.6% 40.1%

30.0%38.5% 37.3% 34.3%

1Q '18 2Q '18 3Q '18 4Q '18 1Q '19 2Q '19 2Q '19 4Q' 19

Owned Operating leased GOP Margin

2,710 2,913 2,878 2,949 2,661 3,003 2,788 2,740

1,749 2,054 2,039 1,937 1,548

2,160 2,073 1,866

64.2%70.5% 70.9%

65.7%

58.2%

71.9% 74.4%68.1%

1Q '18 2Q '18 3Q '18 4Q '18 1Q '19 2Q '19 3Q '19 4Q'19

ADR RevPar %OCC

565 722 721 707

527 695 693 664

344

429 409 466

369

941 1,023 1,053 909

1,151 1,130 1,173

896

1,636 1,717 1,717

1Q '18 2Q '18 3Q '18 4Q '18 1Q '19 2Q '19 3Q '19 4Q'19

Owned Operating lease


1.2 HOSPITALITY SEGMENT - OWNED AND OPERATING LEASED HOTELS IN THAILAND

12

REVENUE BREAKDOWN (THB mn)


GROSS OPERATING PROFIT (THB mn) & MARGIN (%)

INDUSTRY OCCUPANCY RATES WITHIN THAILAND (%)

Source: Bank of Thailand


3,556 2,884 3,170

3,842 3,667

2,594 2,521 3,047 2,971

2,160 2,562

2,946 2,852

1,841 2,076 2,436

82.9%

74.9%80.8%

76.7% 77.8%71.0%

82.3% 80.0%

1Q '18 2Q '18 3Q '18 4Q '18 1Q '19 2Q '19 3Q '19 4Q '19

ADR RevPar %OCC

14183 107

150 14778 103

151

3

1012

25 27

12 15

27 144

93119

175 174

89117

178

40.5%

28.9%33.4%

40.6% 39.3%

27.4%31.6%

40.4%

1Q '18 2Q '18 3Q '18 4Q '18 1Q '19 2Q '19 3Q '19 4Q '19

Owned Operating leased GOP Margin

346270

302358 368

275 315

368

11

5054

73 74

52

57

73 357320

356

431 442

326

372

441

1Q '18 2Q '18 3Q '18 4Q '18 1Q '19 2Q '19 3Q '19 4Q'19

Owned Operatinng lease

81%

76%73%

75%

83%

78%

71%75%

72%

60%

53%

68%

76%

56%52%

69%

77%

71%

65%

71%

81%

70%64%

71%

1Q '18 2Q '18 3Q '18 4Q '18 1Q '19 2Q '19 3Q '19 4Q '19

Central North Overall



1.3 HOSPITALITY SEGMENT - VIENNA HOUSE MANAGEMENT PLATFORM

13

REVENUE BREAKDOWN (THB mn)

KEY FACTORS

• Management revenue increased YoY mainly from the acquisition of arcona

Hotel Portfolio in 2Q 2019

OPERATING EBITDA (THB mn) & MARGIN (%)




63

109 119 117

73

134 139 144 3

5 3 15

9

3 2 5

63

74 84

93

67

79

121 99

129

188 206

224

149

216

261 248

1Q '18 2Q '18 3Q '18 4Q '18 1Q '19 2Q '19 3Q '19 4Q '19

Management Fee Technical Services Others

3

53 67

79

34

78 91 84

2.3%

27.9%32.4% 35.3%

22.9%

36.3% 34.9% 33.9%

1Q '18 2Q '18 3Q '18 4Q '18 1Q '19 2Q '19 3Q '19 4Q '19

Operating EBITDA Operating EBITDA Margin

2,765 3,181 3,261 3,158

2,729

3,548 3,467 3,001

1,665

2,305 2,440 2,180

1,657

2,914 2,853 2,315

59.9%

72.5% 74.8%69.0%

60.7%

82.1% 82.3%77.2%

1Q '18 2Q '18 3Q '18 4Q '18 1Q '19 2Q '19 3Q '19 4Q'19

ADR RevPar %OCC


2. OFFICE SEGMENT OVERVIEW

14

REVENUE BREAKDOWN BY BUILDING (THB mn) EBITDA (THB mn) & MARGIN (%)

NET FLOOR AREA (SQM) & OCCUPANCY RATE (%)

TST TOWER

Gracechurch

Noble Comm. Bldg.Underwood


39

57

38 41 39 3445 41

2

0 16

28

3032 30

30

31 303

15 15

47

85

6873 70

67

90 88

1Q '18 2Q '18 3Q '18 4Q '18 1Q '19 2Q '19 3Q '19 4Q '19

Gracechurch Underwood TST Tower Noble Comm. Bldg

30

59

39 42 44

6369

46

63.8% 69.0%57.4% 57.5% 62.9%

93.4%76.2%

53.0%

1Q '18 2Q '18 3Q '18 4Q '18 1Q '19 2Q '19 3Q '19 4Q '19

EBITDA EBITDA Margin

8,747 8,747 8,747 8,747 8,747 8,747 8,747 8,747

2,370 2,370 2,370 2,370 2,379 2,379 2,379 2,379

16,115 16,064 16,961 16,067 16,067 16,061 16,061 16,061

4,447 4,447 4,447

100.0% 100.0% 100.0% 99.0%91.2% 92.4% 92.4% 93.6%

1Q '18 2Q '18 3Q '18 4Q '18 1Q '19 2Q '19 3Q '19 4Q '19

Gracechurch Underwood TST Tower Noble %OCC


5,328

3,581

1,415

10,324

2020 2021 2022 Total PresalesBacklog

(THB mn)

15

3. RESIDENTIAL PROPERTY BUSINESS - SANSIRI JV

*Backlog as of 31 December 2019 (100% of JV performance)


The Line Sukhumvit 101

Projects Project Value (THB mn)

The Monument Thonglor 123

THE LINE Wongsawang 163

THE LINE Sukhumvit 101 1,320

THE LINE Phahon Pradipat 1,571

THE BASE Petchkasem 29 428

KHUN By Yoo 1,280

THE BASE Sapaan Mai 443

Total 5,328

KHUN by Yoo

PRESALES BACKLOG 2020


CONTENTS

16






Section 3: Business Updates

Note: Excludes managed hotels

17

VH KRONBERG/DE

96 KEYS

VHE RAUNHEIM/DE

200 KEYS

R.EVO MUNICH/DE

607 KEYS

EASTIN GRAND PHAYATHAI/TH

521 KEYS

20252020 2021 2022

VHE WROCLAW/PL

240 KEYS

ARCONA LIVING

MANHEIM/DE

128 KEYS

VHE

GREIFWALD/DE

123 KEYS

PROJECT ROI CHAK SAM/TH

80 KEYS

FUTURE PIPELINE – OWNED AND OPERATING LEASE HOTELS

A FURTHER 1,995 OWNED AND OPERATING LEASED KEYS, TO BE OPERATED BY 2025


THE UNICORN, PHAYATHAI

18

RetailNFA: 2,816 sqm

Hotel & ResidenceNFA: 28,274 sqm

Office NFA: 22,499 sqm

Project Details


51 levels of mixed-use building comprising retail, office, hotel

and residence

Project value Approximately THB 9.3bn

Land Area 7.3 Rai or 1.2 Ha (11,749.6 sqm)

GFA 120,395 sqm

LocationAdjacent to 2 mass transit stations: BTS Phayathai Station and Airport Rail Link

Status 12.38% Progress

Project period Approximately 48 months

Construction Period 3Q 2017 1Q 2022

Start Completion


THE UNICORN, PHAYATHAI

0% 20% 40% 60% 80% 100%

2022

12.38%

Construction Progress(as of 31 December 2019)

20Section 3: Business Updates


A 50:50 joint venture between U City and Hong Kong Corporation who has extensive experience in International School to provide educational services for up to 1,800 students from Pre-K to grade 12

VERSO INTERNATIONAL SCHOOL AT THANA CITY

20

Project Details


Land Area 79.4 Rai or 12.7 Ha (127,065 sqm)

Location Thana City

ConceptProviding unique learning experience and paring modern technology and contemporary teaching techniques

Status 85% Progress

Project period Approximately 36 months

Construction period

Opening Date August 2020

2017 1Q 2020

Start Completion



VERSO INTERNATIONAL SCHOOL


Construction Progress(as of 31 December 2019)

0% 20% 40% 60% 80% 100%

2020

85%


Project Details

Total AreaNFA: 12,300 sqm

World-ClassDining Experience

5-Star Luxurious Hotel

THE CUSTOMS HOUSE (ROI CHAK SAM)


A luxurious 5-star hotel project in a rare, historic, colonial-era heritage building located

along magnificent Chao Praya Riverside


Land Area 5.15 Rai or 0.82 Ha (8,240 sqm)

LocationOn the Chao Praya Riverside, Soi Charoenkrung36, Bangrak, Bangkok

ConceptFocus on the harmony between the heritage custom house and new building

Management Company

Luxury hotel brand

StatusOn the Fine Arts Department submission processfor approval

Project Period 6 yearsConstruction Period

4Q 2019 2025

Start Completion


FUTURE EXPANSION

11 ADDITIONAL DESTINATIONS THAT VIENNA HOUSE IS CURRENTLY LOOKING TO EXPAND TO

23

HAMBURG / DE

RIGA / LVGLIWICE / PL DÜSSELDORF / DEVIENNA / AT

ST. PETER ORDING / DE SCHLADMING / AT GLASGOW / UK


BERN / CH

SOFIA / BGLUGANO / CH


RESIDENTIAL PROPERTY BUSINESS –SANSIRI JV

24

PARTNERSHIP ROADMAP

2015

2016

50:50 JV to develop a targeted THB 100bn worth of condominiums along current and future mass transit lines through the JV with Sansiri PCL with an expected NPAT margin 12%

2018

2017

The LINE WongsawangThe LINE

Sukhumvit 101

The LINE

Jatujak-Mo Chit

Fully transferred

The LINE

Sathorn• The LINE Jatujak – Mo Chit Project value: THB 5,815mn No. of units: 841

• The LINE Sukhumvit 71Project value: THB 1,967mn No. of units: 291

• The LINE RatchathewiProject value: THB 2,809mn No. of units: 231

• The BASE Phetkasem 29Project value: THB 2,028mn No. of units: 640

• The MONUMENT Thong LoProject value: THB 6,075mn No. of units: 127

• The LINE SathornProject value: THB 3,809mn No. of units: 327

• The LINE Asoke-RatchadaProject value: THB 3,022mn No. of units: 473

• The BASE Garden Rama 9Project value: THB 2,258mn No. of units: 640

• The LINE Phahon-PradipatProject value: THB 5,957mn No. of units: 982

• The LINE Sukhumvit 101Project value: THB 4,555mn No. of units: 778

• KHUN BY YOO Project value: THB 4,071mn No. of units: 148

• The LINE WongsawangProject value: THB 4,606mn No. of units: 1,288

• The BASE SaphanmaiProject value: THB 2,917mn No. of units: 820

• The LINE Phahonyothin ParkProject value: THB 4,977mn No. of units: 880

• The BASE Ratchada-ThapraProject value: THB 3,050mn No. of units: 1,037

2022

• The Line Rama9 Pung Muang Project value: THB 1,842mn No. of units: 315

2024



SANSIRI JV HIGHLIGHTS

25

The MONUMENT Thong Lo

• Project value: THB 6,075mn • No. of units: 127

The LINE Wongsawang

• Project value: THB 4,606mn • No. of units: 1,288

READY-TO-MOVE-IN PROJECTS



The BASE Phetkasem 29 KHUN by YOO

The LINE Sukhumvit 101 The LINE Phahon-Pradipat






ASSETS DISPOSAL

ASSETS TYPEAGREED PRICE

(THB MN)

AVANI KHON KHAEN HOTEL 960.0

ANANTARA CHIANG MAI HOTEL 240.0*

ANANTARA SERVICED SUITES

SERVICED APARTMENT

110.0

KORAT LAND 690.0

CHARANSANITWONG LAND 510.0

CHONBURI LAND 7.0

PARK RAMINDRA CONDOMINIUM 330.0

PARK ARAN BOULEVARD COMMERCIAL 154.6

TOTAL 3,001.6

TOTAL STILL UNSOLD 2,337.0

Asset Disposed in 1Q 2018

* Excludes outstanding debts and interest owed that will also be acquired by the purchaser

Sales & Purchase Agreement signed

PROGRESS OF ASSETS TO BE DISPOSED


CONTENTS

27






GUIDANCE 2019 vs ACTUAL PERFORMANCE 2019

28

⇧ 3% to 8% YoY

THB 7,200 - 7,500mn

⇧ 3 to 8% YoY

THB 6,200 - 6,500mn

Section 4: Appendices

EBITDA Margin

≥20%

Total CAPEX &

Investments

THB 1.9 – 2.2bn

⇧ 6 to 24% YoY

THB 300 - 350mn

Total Revenue

GUIDANCE 2019 ACTUAL PERFORMANCE 2019

⇧ 53.4% YoY

THB 10,145mn

⇧ 28.7% YoY

THB 7,264mn

EBITDA Margin

31.5%

Total CAPEX &

Investments

THB 2.6bn

Hospitality

Revenue*

⇧ 14.9% YoY

THB 324mn

Total Revenue*

Office Revenue Office Revenue

⇧ 29.8% YoY

THB 8,586mn

⇧ 28.7% YoY

THB 7,264mn

EBITDA Margin

19.1%

Total CAPEX &

Investments

THB 2.6bn

Hospitality

Revenue*

⇧ 14.9% YoY

THB 324mn

Total Revenue*

Office Revenue

ACTUAL PERFORMANCE 2019 (excl. gain from sale of MCL)

*Based on restated financial statement of FY2018

Hospitality

Revenue


Hotel RevPAR FY 2019 YoY % Change in Euros

Source: STR

Paris (0.9)%

Berlin +1.4%

Prague +3.7%

Warsaw (3.1)%

Bucharest +9.3%

RevPAR +2.5% RevPAR -0.2% RevPAR +6.0% RevPAR +0.5% RevPAR +0.2% RevPAR +12.2% RevPAR 0.0% RevPAR (3.0)%

Section 4: Appendices 29

Bratislava +22.1%

Europe Asia Pacific North America South America Middle East Northern Africa

Southern Africa

Australia & Oceania

Eastern Europe RevPAR (0.9)%

Northern Europe RevPAR +0.7%

Southern Europe RevPAR +6.5%

Western Europe RevPAR +2.2%

Czech Republic RevPAR +3.8%

Germany RevPAR +1.2%

Poland RevPAR +0.6%

Romania RevPAR +10.3%

Slovakia RevPAR +22.0%


30

OUR HOTEL PORTFOLIO

Operational Hotels


No. Hotel Name Country No. of Keys

(1) Owned and financial lease hotels

1Vienna House Amber Baltic Miedzyzdroje Poland 192

2Vienna House Andel's Lodz Poland 277

3Vienna House Diplomat Prague Czech Republic 398

4Vienna House Easy Airport Bucharest Romania 176

5Vienna House Easy Amberg Germany 110

6Vienna House Easy Katowice Poland 203

7Vienna House Easy Bad Oeynhausen Germany 146

8Vienna House Easy Bratislava Slovakia 167

9Vienna House Easy Braunschweig Germany 176

10Vienna House Easy Castrop-Rauxel Germany 84

11Vienna House Easy Coburg Germany 123

12Vienna House Easy Cracow Poland 220

13Vienna House Easy Günzburg Germany 100

14Vienna House Easy Landsberg Germany 103

15Vienna House Easy Limburg Germany 99

16Vienna House Easy Neckarsulm Germany 95

17Vienna House Easy Pilsen Czech Republic 144

18Vienna House Easy Trier Germany 105

19Vienna House Easy Wuppertal Germany 130

Vienna House 3,048

20Eastin Grand Hotel Sathorn Thailand 390

21Eastin Thana City Golf Resort Thailand 194

22U Inchantree Kanchanaburi Thailand 50

23Anantara Chiang Mai Thailand 84

24Avani Khon Kaen Thailand 195

Others 913

Subtotal - owned and finance lease hotel 3,961


(2) Operating lease hotels

1 Vienna House Andel's Berlin Germany 557

2 Vienna House Andel's Cracow Poland 159

3 Vienna House Easy Berlin Germany 152

4 Vienna House Easy Leipzig Germany 205

5 Vienna House QF Dresden Germany 95

6 Vienna House Mokotow Warsaw Poland 164

7 Vienna House Sonne Rostock Germany 119

8 Vienna House Stadt Hamburg Wismar Germany 103

9 Vienna House Remarque Osnabrück Germany 156

10 Vienna House Braunschweig Germany 180

11 Vienna House Thüringer Hof Eisenach Germany 127

12 Vienna House Easy Mo. Stuttgart Germany 131

13 Vienna House Easy Potsdam Germany 123

14 Vienna House Baltic Stralsund Germany 132

15 Vienna House Easy Osnabrück Germany 108

16 Vienna House Ernst Leitz Wetzlar Germany 129

17 Vienna Townhouse Batschari Baden-Baden Germany 69

18 Vienna Townhouse Bach Leipzig Germany 52

19 Vienna Townhouse Goethe Berlin Germany 47

20 Vienna House Easy München Germany 94

21 Vienna House zur Bleiche Schaffhausen Switzerland 130

22 Vienna House Easy Rostock Germany 48

23 Vienna House Easy Bremen Germany 44

Vienna House 3,124

24 U Chiang Mai Thailand 41

25 U Sathorn Thailand 86

Others 127

Subtotal - operating lease hotels 3,251


31

OUR HOTEL PORTFOLIO (CONT’D)

Operational Hotels

78 hotels, totaling 11,749 keys are in operations


(4) JV

1 Holiday Inn Leuchtenbergring Germany 279

2 Holiday Inn Munich Westpark Germany 207

JV 2 hotels 486

Subtotal - JV & managed hotels 29 hotels 4,537

No. of hotels

No. of keys

Operating hotels by ownership

Owned and financial lease 24 3,961

Operating lease 25 3,251

Managed 27 4,051

JV 2 486

Total hotels in operation 78 11,749


No. Hotel Name CountryNo. of Keys

(3) Managed hotels

1 Angelo by Vienna House Ekaterinburg Russia 211

2 Angelo by Vienna House Prague Czech Republic 168

3 Liner Airport Hotel Ekaterinburg Russia 146

4 Marriott Minsk Hotel Belarus 217

5 Vienna House Andel's Prague Czech Republic 290

6 Vienna House Dream Castle Paris France 397

7 Vienna House Magic Circus Paris France 396

8 Vienna House Martinspark Dornbirn Austria 80

Vienna House 8 hotels 1,905

9 Eastin Ashta Resort Canguu Bali Indonesia 130

10 Eastin Easy Aishwarya Talegaon India 90

11 Eastin Grand Hotel Saigon Vietnam 268

12 Eastin Hotel Makkasan Thailand 280

13 Eastin Hotel Tan Chiang Mai Thailand 130

14 Eastin Residences Muscat Oman 50

15 Eastin Residences Vadodara India 44

16 Mountain Lodge By U Thailand 7

17 Travelodge Pattaya Central Thailand 164

18 Travelodge Sukhumvit 11 Thailand 224

19 U Janevalla Bandung Indonesia 119

20 U Jomtien Thailand 64

21 U Khao Yai Thailand 63

22 U Nimman Chiang Mai Thailand 150

23 U Pattaya Thailand 44

24 U Sukhumvit Thailand 82

25 U Tropicana Alibaug India 88

26 U Zenmaya Phuket Thailand 50

27 U Paasha Seminyal Bali Indonesia 99

Others 19 hotels 2,146

Subtotal - managed hotels 4,051


32

OUR HOTEL PORTFOLIO (CONT’D)Hotels in Pipeline

Within 2024, no. of hotels and no. of keys will increase by 41 hotels and 20,037 keys to 119 hotels and 31,786 keys

No. Hotel NameExpected Opening

YearCountry No. of Keys

(1) Owned and finance lease hotels

1 Eastin Grand Hotel Phayathai 2022 Thailand 521

Subtotal pipeline - owned and finance lease 1 hotel 521

(2) Operating lease hotels

1 Vienna House Kronberg 2020 Germany 96

2 Vienna House Easy Raunheim 2021 Germany 200

3 Vienna House Easy Wroclaw 2021 Poland 240

4 arcona Living Mannheim 2021 Germany 128

5 Revo Munich 2022 Germany 607

6 Vienna House Easy Greifswald 2022 Germany 123

7 Project Roi Chak Sam 2025 Thailand 80

Subtotal pipeline - operating lease 7 hotels 1,474

(3) Managed hotels

1Travelodge Phuket Town 2020 Thailand 180

2U Samui 2020 Thailand 60

3Eastin Phat Linh Hotel Halong 2020 Vietnam 334

4Eastin Hotel & Residences Hanoi 2020 Vietnam 200

5Eastin Grand Hotel Nha Trang 2020 Vietnam 1056

6Eastin Hotel Harbour Bangkok 2020 Thailand 456

7Eastin Hotel Nha Trang 2020 Vietnam 180

8Eastin Easy Vita 2020 India 50

9U Pravo Hong Kong 2020 Hong Kong 92

10U Lombok 2020 Indonesia 110

11U Manado 2021 Indonesia 120

12U North Pattaya 2021 Thailand 270

13Skye By Travelodge Nha Trang 2021 Vietnam 4,300

14U Danang 2021 Vietnam 125

15U Riverside Hoi An 2021 Vietnam 150

16U Mui Ne 2021 Vietnam 108

17U Phu Quoc 2021 Vietnam 150

18Eastin Easy Pen 2021 India 350

No. Hotel NameExpected Opening

YearCountry

No. of Keys

(3) Managed Hotels

19 Travelodge Nimman Chiang Mai 2021 Thailand 406

20 Travelodge Jomtien 2021 Thailand 150

21 Eastin Resort & Residences Rayong 2021 Thailand 150

22 U Sochi 2021 Russia 600

23 U Gelendzhik 2021 Russia 600

24 U Crimea 2021 Russia 700

25 U Saint Petersburg 2021 Russia 300

26 Eastin Residences Sri Racha 2022 Thailand 180

27 Travelodge Bangsean 2022 Thailand 160

28 Travelodge Krabi 2022 Thailand 150

29 Eastin Hotel Lang Hai Hanoi 2022 Vietnam 200

30 Eastin Grand Hotel Vung Tau 2022 Vietnam 4,000

31 Eastin Grand Hotel Hong Van Hotel Halong 2022 Vietnam 380

32 Eastin Grand Resort Danang 2022 Vietnam 1000

33 Vienna House Vung Tau 2022 Vietnam 775

Subtotal pipeline - managed hotel 33 hotels 18,042

No. of hotels No. of keys

Hotel in Pipeline by opening year

Opening in 2020 11 2814

Opening in 2021 18 9,047

Opening in 2022 11 8,096

Opening in 2023 0 0

Opening in 2025 1 80

Total hotels in pipeline 41 20,037



672 693 705 743 786 807 882 941 997

2,053

2011 2012 2013 2014 2015 2016 2017 2018 2019 2029F

994 1,040 1,088 1,134 1,184 1,2351,322

1,4011,485

2011 2012 2013 2014 2015 2016 2017 2018 2019

GLOBAL HOSPITALITY INDUSTRY OVERVIEWConsistent Multi-Year Growth

33

GLOBAL INTERNATIONAL TOURIST ARRIVALS GLOBAL FOREIGN VISITOR EXPORTS

GLOBAL CAPITAL INVESTMENT IN TRAVEL & TOURISM TOURISM TOTAL CONTRIBUTION TO GLOBAL GDP (%)

Source: UNWTO Source: World Travel & Tourism Council

Source: World Travel & Tourism Council Source: World Travel & Tourism Council

Millions of persons USD bn

USD bn


1,174 1,214 1,251 1,302 1,356 1,402 1,4941,643 1,739

3,345

2011 2012 2013 2014 2015 2016 2017 2018 2019E 2029F

10.2%

10.4% 10.4%

10.8%

11.5%

2016 2017 2018 2019 2029F


FUTURE BANGKOK HOTEL SUPPLY BY SEGMENTS THAI BAHT PERFORMANCE TO MAJOR CURRENCIES

INTERNATIONAL TOURIST ARRIVALS IN THAILAND BANGKOK HOTEL PERFORMANCE METRICS

19.222.4

26.5 24.8

29.932.5

35.638.3

2011 2012 2013 2014 2015 2016 2017 2018

Source: Department of Tourism, Ministry of Sports and Tourism Source: CBRE

Source: CBRE

0.15

0.16

0.17

0.18

0.19

0.20

0.21

0.22

0.23

0.24

0.020

0.022

0.024

0.026

0.028

0.030

0.032

0.034

0.036

Jan-12 Jan-13 Jan-14 Jan-15 Jan-16 Jan-17 Jan-18 Jan-19

THBUSD THBEUR THBCNY (RHS)

Source: Bloomberg

THAI HOSPITALITY INDUSTRY OVERVIEWA Buoyant and Resilient Tourism Market

34

Millions of persons THB


Keys

6,014 5,584 6,206 6,478 6,569 6,569 6,611 6,726 7,347

18,384 17,194 18,593 19,933 19,933 19,933 20,035 20,635 22,106

5,750 6,656 6,656 7,232 7,532 7,825 8,207 8,552 9,08711,635 13,022 13,277 13,448 13,607 13,607 13,607 13,607 14,90041,783 42,456 44,732 47,091 47,641 47,934 48,460 49,52153,350

44.0%40.5% 41.6% 42.3% 41.8% 41.6% 41.3% 41.7% 41.4%

2015 2016 2017 2018 1Q 2019 2Q 2019 3Q 2019 2019F 2020F

Economy Mid-Range

2,872 2,984 3,015 3,160 3,216 3,185 3,320 3,258

1,998 2,245

1,913 2,323

2,539 2,567 2,648 2,515

69.6%75.2%

63.4%73.5%

78.9% 80.6% 79.7% 77.1%

Q3 2012 Q3 2013 Q3 2014 Q3 2015 Q3 2016 Q3 2017 Q3 2018 Q3 2019

ADR RevPAR Occupancy


Source: Statista Research Department

LONDON OFFICE INDUSTRY OVERVIEWConsistent Demand, Stable Rents, Slightly Higher Vacancy Rate

35

LONDON OFFICE SPACE TAKE-UP LONDON OFFICE INVESTMENT TURNOVER

OFFICE PROPERTIES VACANCY RATE IN LONDON (UK) LONDON OFFICE SUPPLY UNDER CONSTRUCTION

Source: Knight Frank Research

OVERSEAS 92%

Millions of sqf

Millions of sqf

£ bn

6.1%5.4% 5.3%

4.6% 4.6% 4.4%

2014 2015 2016 2017 2018 2019




1.71.3

1.1 1.031.53

2.2

1.41.6

1.97 1.62

0.0 0.20.5 0.38 0.25

4.0

2.93.1

3.38 3.4

4Q '18 1Q '19 2Q '19 3Q '19 4Q '19

West End City Docklands Total London

1.5

2.8

0.9 0.6

1.5

2.8

1.0 0.8

1.8

3.1

0.1

1.3

0.0 0.0 0.1

4.4

5.0

1.7

2.4

4.6

4Q '18 1Q '19 2Q '19 3Q '19 4Q '19

West End City Docklands Total London

11.1

13.1 13.412.6 13.0

4Q '18 1Q '19 2Q '19 3Q '19 4Q '19

Total London


BANGKOK OFFICE INUSTRY OVERVIEWRising Rents and Occupancy

36

OCCUPANCY BY GRADE AND LOCATION (%) AVERAGE RENT BY GRADE AND LOCATION

TOTAL SUPPLY, TAKE-UP AND VACANCY RATE TOTOAL OFFICE SUPPLY BY GRADE AND LOCATION

Source: CBRE Source: CBRE

Source: CBRE Source: CBRE

Millions of sqm

THB/sqm/month

Millions of sqm


8.8 8.9 8.9 8.9 9.0 9.1 9.3 9.5 9.8 10.0

8.0 8.2 8.3 8.3 8.3 8.4 8.6 8.8 9.0 9.2

8.6%

7.0%7.5%

6.9% 7.4% 7.0%7.5%

7.0%7.8% 8.0%

2017 2018 1Q 20192Q 20193Q 2019 2019F 2020F 2021F 2022F 2023F

Total Supply Total Take-Up Vacancy Rate

92% 93%94%

95%97%

94%

96%

94% 94%

88%

92%93%

91% 92% 93% 92% 92%95%

93% 92%

94%93% 93% 93%

2016 2017 2018 1Q 2019 2Q 2019 3Q 2019

Grade A CBD Grade A Non-CBD Grade B CBD Grade B Non-CBD

4.44 4.43 4.48 4.54 4.62 4.76 4.95 5.15

4.51 4.50 4.50 4.53 4.69 4.78 4.83 4.83

1Q 2019 2Q 2019 3Q 2019 2019F 2020F 2021F 2022F 2023F

CBD Non-CBD

980 1,009 1,036 1,055 1,057

715 753 780 784 790 795 853 868 876 876

656 689 706 716 720

2017 2018 1Q 2019 2Q 2019 3Q 2019

Grade A CBD Grade B CBD

Grade A Non-CBD Grade B Non-CBD


Units

FUTURE DOWNTOWN UNITS TO MASS TRANSIT SYSTEM BANGKOK AVERAGE MONTHLY WAGE (THB)

BANGKOK CONDOMINIUM LAUNCHES AVERAGE ASKING PRICE FOR FUTURE MIDTOWN/SUBURBAN

Source: CBRE

Source: Bank of Thailand

THAI CONDOMINIUM MARKET OVERVIEWSigns of a Recovery But a Focus Towards Higher-End Segments

37

THB/sqm

Source: CBRE

Source: CBRE


7,147

2,579 3,033 3,746

1,268

18,808 19,545

14,979

9,645 10,784

3Q '18 4Q '18 1Q '19 2Q '19 3Q '19

Downtown Midtown/Suburban

99,698

97,660

99,317

99,874 99,943

3Q '18 4Q '18 1Q '19 2Q '19 3Q '19

6,658 7,189 6,126

13,253

0-300 301-600 601-800 >800

Distance (Metre)

No. of Units 21,033

20,102

19,628

20,211

20,934

2015 2016 2017 2018 2019


NOBLE PLOENCHIT COMMERCIAL BUILDING

38

Transaction Commercial Space Acquisition

Transaction Size THB 800mn

Seller Noble Development Plc ("Noble")

NFA 4,447 sqm

Asset Details12 commercial units, direct access from BTS Ploen Chit station

Transfer/ Effective Date

14 June 2019

ConditionA 15-year lease agreement with guaranteed rental income

Noble Ploenchit12 commercial units, 4,447 sqm with a direct access from BTS Ploenchit



MO CHIT LAND DISPOSAL

39

Transaction Ordinary Shares Disposal of Mo Chit Land Company Limited

Seller U City PLC

Buyer Sino-Thai Engineering and Construction PLC

Total Price THB 4,320mn

Amount of Shares to be Disposed

29,550,000 ordinary shares (100% of total shares) at par value of THB 27.25 per share

Asset Details Land and commercial buildings (Shop house) in amount of 63 plots 11-0-40.7 Rai (4,440.7 Sq.Wah)

Payment Terms 1st installment: 1 November 2019 THB 1,300mn (transfer date)

2nd installment: 1 November 2020 THB 1,000mn3rd installment: 1 November 2021 THB 1,000mn4th installment: 1 November 2022 THB 1,020mn

Shares Transfer Date

1 November 2019



ACQUISITION OF ARCONA HOTEL PORTFOLIO

40

17 Existing operating leased hotels and 2 new hotels opened in 2020 - 2022

Transaction Acquisition of 12 companies’ ordinary shares in Germany and Switzerland• Signing date: 30 April 2019• Economic date: 1 May 2019

PurchaserVienna House Germany II GmbH • Subsidiary in Germany in which the Company

indirectly holds 100 percent of shares

Seller Arcona Management GmbH

Asset Details Operating lease rights of:1) 17 existing hotels (1,792 keys)• Currently operate under arcona, arcona Living

and Steigenberger brands• The number of rooms are ranging from

44 rooms to 180 rooms2) 2 new projects (251 keys)• Expected to be completed in 2020 and 2022

Asset CurrentLocation

• 16 destinations in Germany• 1 destination in Switzerland

Total Purchase Price

EUR 23.4mn (approx. THB 843.6mn1)

1Reference is made to the foreign exchange rate of EUR and Baht currency according to the Notification of the Bank of Thailand as of April 30, 2019, of which EUR 1 is equivalent to Baht 36.0522. A

Hotels under Vienna House portfolio

Hotels under Arcona portfolio

Berlin

Leipzig

Munich

Dresden

Amberg

Bad

Oeynhausen

Braunschweig

Castrop-Rauxel

Coburg

Günzburg

Landsberg

Limberg

NeckarsulmTrier

Wuppertal

Rostock

Wismar

AA Stralsund

Greifswald

A

AA

APotsdam

A

BremenA

Osnabruck

AA

Wetzlar

A Eisenach

A Bremen

Schaffhausen

ABaden

Baden

A Stuttgart

AMannheim

A

A

A

A

Total acquired keys:

2,043



41

ENTERING INTO SHARE SALES AND PURCHASE FOR ARCONA HOTEL PORTFOLIO (CONT’D)

2,043 keys (1,792 existing keys and 251 pending keys)19 hotels in Germany and Switzerland



U Shares

42

U

Listed shares 5,613,717,564

Par Value 3.2

U-P

Top 10 Shareholders*

No. of Shares %

BTS Group Holdings PCL 2,033,425,452 36.2%

Trophy CG Limited 605,228,108 10.8%

Thai NVDR 123,728,265 2.2%

Mr. Komol Jungrungreangkit 92,445,427 1.6%

Ms. Sukalya Tongpan 91,722,757 1.6%

Mr. Vichit Chinwongvorakul 89,000,000 1.6%

South East Asia UK (Type C) Nominees Limited 79,112,563 1.4%

Mr. Chaiyan Chakarakul 49,004,896 0.9%

Mr. Somkiat Chatsakulwilai 41,930,916 0.7%

Mr. Nethirat Pongnarusorn 38,000,000 0.7%

Top 10 Shareholders*

No. of Shares %

BTS Group Holdings PCL 1,492,056,429 39.9%

Bangkok Bank PCL 903,841,912 24.2%

Trophy Capital Growth Fund 494,182,486 13.2%

Saha Pathana Inter-Holding 176,000,000 4.7%

UOB Kay Hian (Hong Kong) Limited - Client Account 97,267,059 2.6%

Mr. Komol Jungrungreangkit 63,436,341 1.7%

Thai NVDR 39,339,905 1.1%

Mr. Chaiyan Chakarakul 39,203,917 1.0%

Mr. Samrerng Manoonpol 37,897,400 1.0%

Kim Eng Securities (Hong Kong) Limited 24,880,000 0.7%

Listed shares 3,740,575,162

Par Value 3.2

Specified DividendTHB 0.22 per share per calendar year (from Y18 to Y22)

Dividend Yield7.3%(Based on price 3.02 THB/share on 30/09/19)

Dividend Entitlement Entitle for accum for 5 years

* Top 10 Shareholders as of Shareholder Book Closing on 30 September 2019 Section 4: Appendices


U - Warrant

43

U-W1 (Expired) U-W2 (Expired)

No. of Issued Warrant 45,133,272,059

Exercise Ratio (Warrant : Common Stock)

100 : 1

Exercise PriceTHB 5.00 : 1 common stock

Tradeable on SET No

Last Exercise Date 15-Mar-23

U-W3



100 : 1


Tradeable on SET Yes

Last Exercise Date 15-Mar-23

U-W4

Top 10 Shareholders

No. of Warrants

BTS Group Holdings PCL 31,941,176,471

Bangkok Bank PCL 13,192,095,588

Top 10 Shareholders

No. of Warrants

(Pending Warrant Register Book Closing)

N/A

No. ofNo. of exercised warrants %

No. of Common stocks

Funds received from the exercise (THB)

issued warrants

U-W1 180,637,710,882 9,457,400 0.01% 94,574 567,444

U-W2 100,043,438,606 - - - -

Details Regarding the exercise of Warrants U-W1 & U-W2



100:01:00


Tradeable on SET Yes

Last Exercise Date 06-Nov-19

No. of Exercised Warrant

9,457,400



100:01:00


Tradeable on SET No

Last Exercise Date 06-Nov-19

No. of Exercised Warrant

None


Documents

U CITY PCLu.listedcompany.com/misc/presentation/20200219-u... · U CITY PCL (633) 1,867 7,781 52 292 2,187 26 (3,193) (3,757) (793) (727) NET LOSS FY2018-R Operating Revenue Operating