Hemaraj Land and Development Public : 9M'15 NET INCOME OF BAHT 2,074.4 MILLION WITH ECONOMIC ENVIRONMENT IMPROVING (NORMALIZED NET INCOME (NNI) OF BAHT 2,470.2 MILLION)

HEMARAJ ANNOUNCED 9 MONTHS RESULTS HEMARAJ - 9M'15 NET INCOME OF BAHT 2,074.4 MILLION WITH ECONOMIC ENVIRONMENT IMPROVING

- (NORMALIZED NET INCOME (NNI) OF BAHT 2,470.2 MILLION)

Hemaraj Land And Development Public Company Limited announced its operating and financial results for 9M'15 as summarized below.

Net Income

For 3Q'15, Hemaraj reported Total Net Income of Baht 462.0 million, a decrease of 4% compared with the same period of the previous year. Earnings per-share was Baht 0.046 per share, representing a decrease of 6%. Normalized Net Income (NNI) for 3Q'15 was Baht 775.2 million (excluding unrealized foreign exchange loss of Baht 313.18 million), or an increase of 66%.

For the 9 months of 2015, Hemaraj reported Total Net Income of Baht 2,074.4 million, a decrease of 25% compared with the same period of the previous year. Earnings per-share was Baht 0.209 per share, representing a decrease of 20%

Net profit decreased compared to 9M'14 due mainly to lower land transfers in 9M'15 from weak economic environment both locally and export markets. In addition, non-cash unrealized foreign exchange translation loss was Baht 395.8 million from power investment (this is accounting expense with no effect on cash). However, revenue from utilities services and revenue from industrial properties for rent continued to increase. As a result, Hemaraj has a reported net profit margin of 57.8%, compared to 53.7% in 9M'14, despite lower revenues. (Normalized net profit margin increased to 68.9% compared to 52.2% in 9M'14)

3 months ended 30-September		Change from
		2014
2015	2014	Amount	%
Total Net Income (Baht million)	462.0	480.5	-18.5	-4%
Normalized Net Income (Baht million)*	775.2	465.6	309.6	66%
(NNI*)
Earning Per Share (Baht) **	0.046	0.049	-0.003	-6%

*Adjusted Foreign Exchange Unrealized Translation Gain (Loss)

** Calculated by dividing the net profit attributable to ordinary shareholders of the company

9 months ended 30-September		Change from
		2014
2015	2014	Amount	%
Total Net Income (Baht million)	2,074.4	2,764.9	-690.4	-25%
Normalized Net Income (Baht million)*	2,470.2	2,687.2	-217.0	-8%
(NNI*)
Earning Per Share (Baht)**	0.209	0.261	-0.052	-20%

*Adjusted Foreign Exchange Unrealized Translation Gain (Loss)

** Calculated by dividing the net profit attributable to ordinary shareholders of the company

Mr. David Nardone, President & CEO of Hemaraj Land And Development Public Company Limited had the following comments on the company's performance.

'Hemaraj Land And Development Public Company Limited finished the first 9 months of 2015 with favorable operating and financial results in the content of the overall Thailand and global economic environment. Industrial Estate revenue was lower by 52%, as revenue is based on industrial land transfers. However, Rental Property revenue increased 5% from the same period of 2014. Revenue from industrial estate utilities (non power) also increased by 5% from the same period of 2014.

Industrial Estate land sales for 9M'15 were 511 rai (218 acres or 82 hectares), with 18 contracts, 14 new customers and 4 project expansions from existing customers. Seventy two percent of the contracts in 9M'15 were non automotive.

The domestic OEM automotive sales were down 14% while automotive OEM production volume increased 2% and automotive exports increased 8% in 9M'15. Automotive export value increased 6% compared with the previous year auto value. Automotive in total was 15.10% of total Thailand exports. Hemaraj is the choice of leading multinational investment.

For 9M'15, Ready Built Factories were flat totaling 298,818 square meters under rental inclusive of the Hemaraj Property Fund. Hemaraj Logistics Parks for Rent increased net 1,343 square meters or 2% from 2014 cumulative balance.

In Power, Gheco-One, a 660 MW IPP (Independent Power Producer) project with Hemaraj 35% shareholding and Glow Energy 65% (Engie group), operated at 95% commercial dispatch availability in 9M'15. Hemaraj received share of profit from power/utility associates (excluding foreign exchange unrealized translation gain/loss) at Baht 1,245.9 million, or a decrease of 4% from the same period of 2014. Hemaraj also signed shareholder agreements with B.Grimm and Gulf Energy Development (GED) in the first quarter of 2015 to develop another 7 126 MW SPP power projects expecting COD starting from 2017 onwards. The investment will increase Hemaraj's equitable operating capacity from 318 MW to 538 MW by 2019.

The combined leadership of WHA and Hemaraj will provide enhanced opportunities in providing complete industrial estate, utility, power, and logistics property solutions for our customers and in ensuring our joint success going forward.

Hemaraj has broad strategie revenue in core business areas: - industrial estates, utilities, power, and property. Our 9M'15 operating and financial results, demonstrate the profitability from these recurring investments. Our strategy remains to provide superior long term returns to shareholders.'

Revenue and Results of Operations for 9 months of 2015

For the 9 months of 2015, Hemaraj Total Revenue was Baht 3,587.3 million compared with Baht 5,149.6 million for the same period of 2014, representing a 30% decrease. Total Operating Revenue from core business was Baht 3,616.3 million, a 31% decrease from the same period of 2014. Industrial Estate Land Sales for 9M'15 were Baht 1,406.3 million, or a 52% decrease, with a gross margin of 56%. This included revenue from sales of investment properties Baht 33.5 million in 2Q'15. The backlog in deferred revenue is Baht 2,152 million, with recognition based on the title transfer date, from Industrial Estate land sales not recognized to date representing sales that will be recognized primarily over the next 3 to 12 months.

Industrial estate utilities increased to Baht 1,350.2 million, or an increase of 5%. Total Utilities which includes industrial estate utilities, dividend from power utilities associates, and other utilities and services fees increased to Baht 1,495.7 million, an increase of 10%.

Total Rental Property and Services Revenue including ready built factory rental, logistics parks rental, pipe-rack rental, and commercial office rental increased to Baht 691.0 million, an increase of 5%. This was mainly from the increase in Pipe-rack Rental to Baht 114.6 million, an increased by 18% due to higher occupancy rates and rental rate. Ready Built Factory Rental improve to Baht 374.4 million, an increased by 14%. Logistics Parks Rental also improved to Baht 113.9 million, an increase of 13%.

The Gross Profit was Baht 2,046.6 million. Earnings before Interest Tax Depreciation and Amortization (EBITDA) were Baht 2,028.7 million for 9M'15. The Gross Profit Margin and EBITDA Margin were 57% and 57%, respectively.

Summary of Operating Revenue (Baht: Million)	9 months ended		Change from
	30-September		2014
	2015	2014	Amount	%
Industrial Estates Industrial Estates Land Sales	1,406.3	2,917.2	-1,510.8	-52%
Total Industrial Estates	1,406.3	2,917.2	-1,510.8	-52%
Utilities
Industrial Estates Utilities	1,350.2	1,288.0	62.2	5%
Dividend from Power/Utility Associates	2.6	3.2	-0.6	-19%
Other Utilities & Service Fees (Net)	143.0	67.6	75.4	112%
Total Utilities	1,495.7	1,358.7	137.0	10%
Rental Property
Ready Built Factory Rental	374.4	329.8	44.6	14%
Logistics Parks Rental	113.9	100.6	13.3	13%
Pipe-rack Rental	114.6	97.3	17.3	18%
Commercial Office	30.4	71.3	-40.9	-57%
Land/Commercial/Other Rental	23.1	18.1	5.1	28%
Other Property Management, Rental and Services	34.5	43.3	-8.8	-20%
Total Rental Property	691.0	660.4	30.6	5%
Sale of Property
Ready Built Factory	-	39.3	-39.3	-100%
Residential	23.3	234.2	-210.9	-90%
Total Sale of Property	23.3	273.5	-250.2	-91%
Total Operating Revenue *	3,616.3	5,209.8	-1,593.5	-31%
Total Revenue	3,587.3	5,149.6	-1,562.3	-30%
Gross Profit	2,046.6	2,497.8	-451.2	-18%
Gross Profit Margin	57%	49%	9%	18%
EBITDA	2,028.7	2,222.3	-193.5	-9%
EBITDA Margin	57%	43%	13%	31%
Share of Profit from Power/ Utility Associates	1,245.9	1,300.3	-54.4	-4%
Share of Profit from Hemaraj Property Fund (HPF)	55.3	58.0	-2.7	-5%
Foreign Exchange Unrealized Translation Gain (Loss) **	-395.8	77.6	-473.4	-610%
Financial Costs	565.2	558.7	6.4	1%
Income Tax	73.5	72.1	1.4	2%
Total Net Income (Baht million)	2,074.4	2,764.9	-690.4	-25%
Foreign Exchange Unrealized Translation Gain (Loss) **	-395.8	77.6	-473.4	-610%
Normalized Net Income (Baht million) ***	2,470.2	2,687.2	-217.0	-8%
Normalized Net Income Margin ***	68.9%	52.2%	16.7%	32%
Earnings Per Share (Baht)****	0.209	0.261	-0.052	-20%

• Internal Restated, ** from Gheco-One and GJP NLL, *** Adjusted Foreign Exchange Unrealized Translation Gain (Loss)

  
  

  **** Calculated by dividing the net profit attributable to ordinary shareholders of the company

  Significant Activities for 9 months of 2015

  • Industrial Estate Land Sales were 511 rai with 18 contracts, 14 new customers and 4 project expansions from existing customers. Hemaraj now has 660 distinct new customers with 993 contracts including 228 automotive customers with 347 automotive contracts.

  • Ready Built Factories decreased net 3,252 square meters totaling 298,818 square meters under rent. This comprises of 188,596 square meters at Hemaraj companies and 110,222 square meters rented under the 2014 year-end Hemaraj Property Fund (Hemaraj 23.12% share).

  • Hemaraj Logistics Parks for Rent increased net 1,343 square meters or 2% from 2014 cumulative balance, totaling 83,778 square meters under rent.

  • Gheco-One, a 660 MW IPP coal project with Hemaraj 35% shareholding and Glow Energy 65% (GDF Suez group), operated at 95% commercial availability.

    Activities after Quarter 3, 2015

  • On April 20, 2015 WHA Venture Holding Company Limited, a fully owned subsidiary of WHA Corporation Public Company Limited completed their voluntary tender offer for 92.88% of the total shares of Hemaraj Land And Development Public Company Limited. This was after acquiring an initial 22.53% of the shares in a mutual agreement from two of the founding Hemaraj shareholders.

  • Tris Rating Lowers the Company and Senior Unsecured Debentures to 'BBB+' from 'A' with Outlook ' Stable' on 18 September 2015

  • The Extraordinary General Meeting of Shareholders No. 1/2015, held on 30 September 2015 has passed resolutions to delist the Company's shares from the Stock Exchange.

Balance Sheet Highlights for the 9 months period ended 30th September 2015

At 30th September 2015, Hemaraj reported Total Assets of Baht 32,044 million, Total Liabilities of Baht 19,278 million and Total Shareholders' Equity of Baht 12,766 million. The Net Debt to Equity ratio was 1.44 to 1 with Cash and Deposits on Hand of Baht 905 million.

(Baht in million) 30-Sep-15 2014

Cash and Deposits 905 2,087

Land and Development 14,143 13,141

Investment (mostly Power) 8,838 8,283

Investment (Hemaraj Property Fund) 659 659

Ready Built Factory & Rental Assets 4,569 4,237

Asset held for sale 2,381 0

Other Assets 548 5,208

Total Assets

Baht Bonds

32,044 33,615

13,938 12,938

Other Baht Loans 1,458 2,366

Total Debt/Loans

15,396 15,304

Other Liabilites 3,882 3,282

Total Liabilites 19,278 18,586

Total Shareholders Equity

Total Liabilities & Shareholders Equity

Net Debt / Equity Ratio (Times)

(million shares)

No. of Shares outstanding

Book Value per share (Baht/Sh) Par Value (Baht/Sh)

12,766 15,029

32,044 33,615

1.44 1.10

9,705.19 9,705.19

1.32 1.55

0.40 0.40

For further information concerning Hemaraj Land And Development Public Company Limited (SET symbol Hemraj), please visit our website at www.hemaraj.com or contact us by email at [e-mail]

Hemaraj Land And Development Public Company Limited

18/F UM Tower, 9 Ramkhamhaeng, Suanluang, Bangkok 10250, Thailand

Tel: [phone] to 9 Fax: [phone] to 7