Pruksa Real Estate Pcl.

Business Plan 2016

19 January 2016

Pruksa was honored with 3 awards in 2015Outstanding CEO award by SET Outstanding Company Performance award by SET Outstanding Investor Relations award by SET

• Property outlook

• Corporate strategy

• Corporate performance

• Financial strategy

Agenda

Pruksa Ville 73 The Plant Exclusique Plum Condo Central station

Property outlook and

Corporate strategyby

Mr. Thongma Vijitpongpun

Chairman of Executive Committee

and

Chief Executive Officer (CEO)

1.2) Standard-gauge, dual track railway (1,065,822 MB)

1. Bangkok-Nong Khai, Kaengkou-Mab Taphut

(875km. value 369,148 MB)

2. Bangkok-Phisanulok-Chaingmai

(670km. value 449,473 MB)

3. Bangkok-Hua Hin (220km. value 94,673 MB)

4. Bangkok-Rayong (220km. value 152,528 MB)

1.1) Mass Transit line (396,614 MB)

1. Orange Line: Thailand Cultural Center-Min Buri

(21 km. value 110,117 MB)

2. Pink Line: Kae Rai-Min Buri

(34.5km. value 56,691 MB)

3. Yellow Line: Lad Praow-Sam Rong

(30.4km. value 54,644 MB)

4. Red Line: Bang Sue-Hua Lam Phong (25.9km. value 44,158 MB)

5. Purple Line: Tao Poon-Ratburana (23.6km. value 131,004 MB)

4

19 projects under Thailand’s Transport Infrastructure Development Strategy (Improve prospect for real estate industry)

2) Air Transport (51,607 MB)

Suvarnabhumi Airport Phase II

3) Maritime Transport (3,895 MB)

1) Coastal port development (Terminal A)

Leam Chabang Port (value 1,864 MB)

2) Single Rail Transfer Operator (SRTO) Phase I,

Leam Chabang Port (value 2,031 MB)

19 Transport Infrastructure Projects with

Investment Plan (Bt1.8 Trillion)

Source: Transport ministry

1.3) Meter-gauge, dual track railway (93,186 MB)

1. Thanon Chira-Khon Kaen (185 km. value 26,005 MB)

2. Map Krabao-Thanon Chira Junction (132 km. value 29,853 MB)

3. Nakhon Pathorm-Hua Hin (165 km. value 20,037 MB)

4. Prachuap Khiri Khen-Chumphon (167 km. value 17,291 MB)

1.4) Motor way (160,420 MB)

1. Patttaya-Mab Taphut (62km. value 20,200 MB)

2. Bangyai-Kanchanaburi (96km. value 55,620 MB)

3. Bang Pa In-Nakhon Ratchasima (196km. value 84,600 MB)

10 Mass transit lines

5

1. Red line (Thammasat-Mahachai

2. Light red line(Siriraj – Salaya)

3. Airport rail link(Bangsue – Phayathai Suwannaphoom)

4. Dark Green line(Lumlooka-Morchit-Samutprakarn)

5. Light green line (Silom)6. Blue line

(Bangsue-Hualumphong-Thapra-Phutamonthon)

7. Purple line (Bangyai-Bangsue)

9. Pink line (Khaerai-Minburi)

8. Orange line(Talingchan – Minburi)

10. Yellow line(Ladprao – Samrong)

The schedule of dual track Thai-Chinese has separated into 4 phases with 873 kms

1. Bangkok-Kaengkhoi: 133 Kms, expected to construct in 2016 and will operate in 2018

2. Kaengkhoi-Mathaput : 246 Kms – on study process 3. Kaengkhoi-Nakornratchasirma: 138.5 Kms, construct in

Nov 20154. Nakornratchasrima-Nongkai: 355 Kms, expected to

construct in Feb 2016

The schedule of dual track railway Thai-Japan

1. Bangkok-Chiangmai : 715 Kms Construction will start at the mid of 2016

2.&3. Kanchanaburi-Bangkok and Bangkok-Leam Cha-bang: 574 Kms (On study process)

The highest speed of dual track is 180 Kms/HourNormally the maximum speed was 250-300 Kms/Hour but Thai government set up maximum speed at 200 Kms/Hour

Dual track railway (รถไฟรางคู)

6

Source : Prachachat newspaper

10

2016 Bangkok Metropolitan Region (BMR) outlook

Base on presale

54,788 58,190 55,873 71,679

79,231 91,058 85,610

90,208

166,785

190,471

142,102

182,680

11,048

8,817

9,869

10,232 311,852

348,536

293,454

354,799

2012 2013 2014 2015 2016 (F)

+21.4%

yoy

The BMR market is expected to grow between 5-10.0% yoy in 2016

THTH

OtherOther

CondoCondo

SDHSDH

1

2

3

4

+5-10%

371,966-391,639

+20.9%

9,938 - 10,744

192,262 – 206,428

95,522 – 95,620

74,244 – 78,847

Source: Marketing Intelligence and brand management , Corporate Marketing at Pruksa Real Estate Pcl. .

• Property outlook

• Corporate strategy

• Corporate performance

• Financial strategy

Agenda

Pruksa Ville 73 The Plant Exclusique Plum Condo Central station

12

Key Highlights

Presale and revenue are expected to grow by 20.3% yoy and 10.6% yoy in 2016

Will continue to strengthen our existing business platform in TH and SDH segments

Long term sustainable business growth, continue to focus on the real demand

segment growth opportunity in the Bangkok Metropolitan Region (BMR)

Ac

Presale 51,000 42,385 20.3%/

Revenue 52,000 47,000 10.6%#DIV/0!

Number of new projects launch 60-65 44 36.4%-47.7%

Total value of new projects 50,000-54,000 44,579 12.2%-21.1%

2016 (F) 2015 yoy

13

2016 Target and 2015 performance (Bt m)

* 2015 revenue was target at Bt47,000m

*

14,89617,198 18,630

23,075 23,820

7,655

8,35510,038

10,11912,800

6,730

15,502 10,190

8,951

14,300

116

227232

241

80

2012 2013 2014 2015 2016 (F)

14

41,282

2016 Presale target (Bt m)

Target51,000

29,397

THTH

InterInter

CondoCondo

SDHSDH

1

2

3

4

39,090

yoy+20.3%

42,38628%

25%

47%

+59.8% (yoy)

+26.5% (yoy)

+3.2% (yoy)

Presale target set at Bt51,000m or 20.3% grow yoy

15

2016 Revenue target (Bt m)

14,908

20,66922,791

16,484

24,840

8,775

9,1959,776

7,514

13,200

2,837

8,450

9,694

9,041

13,800

429

497

441

172

160

2012 2013 2014 2015 (9M15) 2016 (F)

42,702

Target47,000

29.3% toachieve

38,811

26,949

THTH

InterInter

CondoCondo

SDHSDH

1

2

3

4

yoy+10.6%

9M15 revenue of Bt33,211m

Target52,000

27%

25%

48%

Revenue target set at Bt52,000m or 10.6% up yoy

34

6

2015 2016 (F)

16

THTH

CondoCondo

SDHSDH

1

2

3

Total ValueBt50.0-54.0bn

60-65 Projects

Total Value Bt44.6bn

44 Projects

42-44

12-14

4

* All the 2016 projects have already secured land

60-65 projects with value of Bt50.0-54.0bn will be launched in 2016

2016 new projects launch

6-7

Value(Bt m)

TH 34 10,241 27,371SDH 6 1,075 7,597CD 4 4,453 9,611Total projects 44 15,769 44,579

New Projects launches for 2015

TypeNo. of

projectsUnits

Pruksa REM To offer an innovative industrial construction with quality control

and inspection at all process

Pruksa Precast To implement world class

innovative construction and offer the durable home

Pruksa CaringA service centre by offering

various communication channels such Call Centre 1739, Chat Online, application and etc.

R&D

คิดสรางสรรคนวัตกรรมที่มีคุณคาเพื่อลกูคา

CREATE VALUE INNOVATION

To select the quality material/product from the

leading brand

PMC Project Management Control A process to manage projects

from starting of PMC landacquisition until the projects are

closed

Top brand materials

Focuses on innovative construction technology and continuous design

improvement

Innovation

17

Key innovation

1993 2004 2008 2009 2012 2013 2014 2015

2004Built “Precast Concrete Factory”

2014• Built precast factory No. 6-7

Total capacity for 7 factories are 1,120 units/month

• Supply Chain Management • I –Inspection • Prefabricated bathroom

2012First time applied REM in construction process for land property

2015• BIM (Building Information

Management) for Design• PMC (Project Management Control) • Energy saving home

2013 • Earthquake

resistance research• ASQ Award

2008• Fully Precast in low rise condo• Knock down stairs

2009Fully Precast in high risecondo (The Seed Mingle)

1993Pruksa Real Estate founded by K.Thongma Vijitpongpun

18

New innovation

Precast development

2016

2016• BIM (Building Information

Management) for construction • Applied REM & Precast in high

rise condo• Connected premium house and

energy saving home• Global partnership in strategy

Agenda

• Property outlook

• Corporate strategy

• Corporate performance

• Financial strategy

Pruksa Ville 73 The Plant Exclusique Plum Condo Central station

Corporate performanceby

Mr. Lersuk Chuladesa

Vice Chairman of Executive Committee

and

Chief Operating Officer (COO)

21

Key Highlights

High secure backlog of Bt25,938m at the end of 4Q15 while 2016 backlog was

Bt15,278m for future revenue

173 active projects with unsold value of Bt81,000m will help to secure future revenueLow rise: 141 projects - Bt61,648m (76.1%)High rise: 32 projects - Bt19,352m (23.9%)

Have started to apply precast and REM in construction in order to reduce business cycle time, better quality of home and focus on fasten asset turnover.

Pruksa is striving to achieve toward Consumer Mega Trends

16,484

24,840

7,514

13,200 9,041

13,800

172

160

2015 (9M15) 2016 (F)

THTH

A. 2016 backlog of Bt15,278m with total

backlog of Bt25,938m

B. 173 active projects with an unsold value of

Bt81,000m and 2016 project launches will

be 60-65 projects with value of Bt50-54bn

C. Expected business cycle time for landed

property to be below 75 days in 2016

How to achieve revenue target

22

How to achieve 2016 revenue target (Bt m)

InterInter

CondoCondo

SDHSDH

1

2

3

4

27%

25%

48%

Target52,000

yoy+10.6%

Target47,000

29.3 % to achieve

9M15Revenue Bt33,211m

15,278

5,873

4,787

By year

2016 Backlog Bt15,278m

20162016

20182018

20172017

Total backlog is Bt25,938m, while 2016 backlog is Bt15,278m

InternationalBt71m, 1%

23

CDBt9,053m, 59% SDH

Bt2,709m, 18%

THBt3,445m, 22%

Bt25,938m

A. Backlog at the end of 4Q15 (Bt m)

There are a total of 173 active projects that have an unsold value of Bt81,000mLow rise: 141 projects – Bt61,648m (76.1%) High rise: 32 projects - Bt19,352m (23.9%)

2016 project launches will be 60-65 projects with value of Bt50-54bn

24

B. Active projects at the end of 4Q15

2008 2009 2010 2011 2012 2013 2014 2015

TH and SDH 111 91 115 144 167 146 87 79

CD 420 564 582 521 513 780 817 739

2008 2009 2010 2011 2012 2013 2014 9M15

Total 8,913 11,249 12,849 12,194 12,444 17,137 17,084 13,135 100%

TH and SDH 8,492 9,527 11,566 10,470 11,353 13,169 13,166 9,495 72.3%

CD 421 1,722 1,283 1,686 930 3,800 3,800 3,602 27.4%

Inter 38 161 168 118 38 0.3%

Total 12,968 19,033 23,277 23,212 26,949 38,811 42,702 33,211 100%

TH and SDH 12,404 15,437 19,669 18,644 23,683 29,864 32,567 23,998 72.3%

CD 564 3,596 3,608 4,486 2,837 8,450 9,694 9,041 27.2%

Inter 82 429 497 441 172 0.5%

9M15 Breakdown

Product Type

Booking to Transfer (Days)

Product Type

Unit Transfer (Units)

Total Revenue (Bt m)

Business Cycle Time

26

C. Expected business cycle time

Business cycle time for landed property in 2016 is expected to be less than 75 days

To initiate with Germany research to build energy saving house with using environmental friendly materials and DGNB certified following 4 consumers 4 mega trends for example The Plant-Estique Pattanakarn

To cooperate with AIT (Asian Institute of Technology) for prototype device to monitor the quality of pipe during construction

To develop full dimension of design in building information modeling (BIM) for all dimensions

Consumer Mega Trends

Pruksa : Create Value (คิด สรางสรรคคุณคา)

4 Consumer Mega Trends Pruksa Innovation(แนวโนมความตองการของผูบริโภค)

Safety Homeบานทีแ่ขง็แรงปลอดภัย

Healthy Homeบานที่ใสใจดานสขุภาพ

Green Homeบานลดการใชพลงังาน

Smart Homeบานทันสมัย เพิ่มความสะดวก

Safety Concernความปลอดภัย

Demographyการเปลี่ยนแปลงของ

ประชากรโลก

Sustainabilityความยัง่ยืน

Technologyเทคโนโลยีที่ทันสมัย

Year 2015 Year 2016

Fully precast structure research with AIT and ChulalongkornUniversity

Applied low volatile organic compound

Started to implement solar cell in the common areas of the projects such as swimming pool, sport club and entrance

Started home automation in mid to high-end projects such as CCTV, Smart phone and etc

27

Agenda

• Property outlook

• Corporate strategy

• Corporate performance

• Financial strategy

Pruksa Ville 73 The Plant Exclusique Plum Condo Central station

Corporate performanceby

Mr. Charly Madan

Chief Financial and Risk officer (CFRO)

Maintain prudent financial policies to mitigate challenges in business cycle

IBD Ratio between 0.8-1.25X

Efficient management of financial cost

Consider higher dividend payout ratio than the previous year (>30.0%)

30

Financial strategy

31

Budget for land acquisition

13,222

5,899

16,711

14,000

2013 2014 2015 2016 (F)

Land budget is Bt14,000m in 2016

2015 (Unaudited)

IBD/E : 0.58x

D/E : 0.9x

Balance Sheet (Bt m)

43,821

56,194 61,033 65,250

17,527 20,948 22,295 20,00020,082

24,933 29,707

34,298

Total Asset Interest bearing debt Equity

2014

IBD/E : 0.75x

D/E : 1.05x

2013

IBD/E : 0.84x

D/E : 1.25x

2012

IBD/E : 0.87x

D/E : 1.18x

IBD ratio is well-managed to be within our internal target at 1.25x

2012 2013 2014 2015 (Unaudited)

32

0.50

0.851.00

0.50

28.5%

32.6%

33.4%36.5%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

40.0%

0.10

0.20

0.30

0.40

0.50

0.60

0.70

0.80

0.90

1.00

1.10

2012* 2013 2014 1H15

Dividend per share (Bt/Share) Dividend payout ratio (%)

Bt/Share

Dividend payout

Remark : 2012 Thailand flood

33

Thank you

Pruksa real estate Public Company Limited (“Pruksa”) provides this presentation for the purpose of publishing company’s performance and material financial information. Some statements made in this presentation are forward-looking statements with subject to change due to the market’s condition and various uncertainties. These also include statements with respect to our management strategies, beliefs and expectations. Pruksa, therefore, makes no representation or warranty as to the accuracy, completeness or appropriateness of the information contained in this presentation. This presentation does not constitute any advice, offer or solicitation for any investment or otherwise. The readers or recipients should consider the information carefully and are requested to use their own discretion to review the information relating to Pruksa from the presentation and the other sources before making a decision in any transaction. Any unauthorized use, reproduction or distribution in whole or in part of the information contained in this report without Pruksa’s permission is strictly prohibited. However, Pruksa reserves the right with its own discretion to amend or modify the information contained in this presentation without any prior notice. Pruksa shallnot endorse or accept any responsibility for the content or use of any such opinion or statement.