HEMARAJ - 2012 NET INCOME OF BAHT 2,293.8 MILLION UP 327% YEAR OVER YEAR

- (NORMALIZED NET INCOME (NNI) OF BAHT 2,115.9 MILLION)
- 2012 REVENUE OF BAHT 6,399.4 MILLION UP 54% YEAR OVER YEAR
- INDUSTRIAL ESTATE LAND SALES OF 2,317 RAI UP 38.74% YEAR OVER YEAR


Hemaraj Land And Development Public Company Limited announced its operating and financial results for the year 2012 as summarized below.

Net Income

For Quarter 4’2012, Hemaraj reported Total Net Income of Baht 710.3 million, and earnings per-share was 0.073 Baht per share, representing an increase of 85% from the same period of last year. Normalized Net Income (NNI) for Quarter 4’ 2012 was Baht 679.7 million.

For the year 2012, Hemaraj reported Total Net Income of Baht 2,293.8 million, and earnings per-share of 0.236 Baht per share, or an increase of 327 % and 328% respectively compared with the same period of 2011.

The Increase of Net Income of 2012 was due to growth in most areas of business, particularly industrial estates. Higher industrial estate sales through land transfers resulted in higher revenue recognition. There was also stronger growth in Industrial Utilities and Rental Properties. In addition, there was an unrealized foreign exchange translation gain for Gheco-One of Baht 177.9 million in 2012 compared to an unrealized foreign exchange translation loss of Baht 243.6 million in 2011. Normalized Net Income (NNI) of 2012 was Baht 2,115.9 million.

David Nardone, President and 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 had strong financial and operating results for 2012. The operating business reflected record levels of industrial estate land sales and transfers with Industrial Estate Land sales revenue being up 123% reflecting this. Broader revenue participation included Industrial Estate Utilities revenue increasing 20% as capacity recovered from 2011. As well, Ready Built Factory rental revenue increased 46%. We also have our new Hemaraj Logistics Parks projects with initial rental take-up showing encouraging results. In power development, our Gheco-One 660 MW IPP power investment in operation since August 2012 along with other confirmed or developing power projects will further contribute to predictable recurring revenue going forward.

Automotive industry investment is expanding in Thailand, in addition to logistics, electronics, consumer and others. The automotive production in Thailand for 2012 recovered to 2.4 million vehicles and is projected at 3.0 to 3.3 million vehicles over the next 3 to 5 years. The expansion and relocation of capital to Thailand due to cost currency and particularly access to automotive and other markets has continued.

Japan investment remains strong with almost half of our industrial contracts the last 4 quarters. For the year 2012, record operating results were Industrial Estate Sales of 2,317 rai (927 acres or 370 hectares),with 115 contracts, 80 new customers and 35 project expansions from existing customers.

Ready Built Factories for Rent grew by 76,786 square meters or a 48% increase from the 2011 year-end cumulative balance, with another 23,992 square meters pre-leased to commence in 2013. We launched 4 Hemaraj Logistics Parks inside or near 3 of our Eastern Seaboard industrial estates.

For 2012, revenue performance was Total Revenue of Baht 6,399.4 million, a 54% increase from the same period of 2011 due to the factors noted. Total Net income was Baht 2,293.8 million or on a Normalized Net Income (NNI) basis, taking out swings in Unrealized Foreign Exchange, Baht 2,115.9 million, comparable to the NNI for the year of 2011 of Baht 780.2 million. Hemaraj investment continues in our core business areas - industrial estates, utilities, power, ready-built factories. logistics parks, and properties. The 2012 revenue and operating performance are starting to reflect the synergistic leverage and increasing profit opportunities.

At Hemaraj, we are cognizant of global economic uncertainties with potential risks and disruptions in investment, trade and our business model. Consequently, the risk profile of the company, despite slightly higher leverage due to overall investment levels, is reflecting the increased predictability of the revenue and earnings. Our strategy remains to provide superior long term returns to shareholders.”

Revenue and Results of Operations for Year of 2012

For the year of 2012, Hemaraj’s Total Revenue was Baht 6,399.4 million compared with Baht 4,150.5 million for the same period of 2011, representing 54% increase. Total Operating Revenue from core businesses was Baht 6,447.9 million, a 52% increase from the same period of 2011. Industrial Estate Land Sales for year of 2012 were Baht 3,972.5 million or a 123% increase. In addition, there is an additional Baht 3,378 million in deferred revenue, with recognition based on the transfer date, from Industrial Estate land sales not recognized to date representing sales that will be recognized primarily over the next 3 to 24 months.

Industrial estate utilities increased to Baht 1,390.8 million, or an increase of 20% reflecting the higher volume. Total Utilities which includes industrial estate utilities, dividend from power utilities associates, and other utilities and services fees increased to Baht 1,495.9 million, an increase of 22%. Total Rental Property and Services Revenue including ready built factory rental, logistic park rental, pipe-rack rental, and commercial office rental increased to Baht 722.7 million, an increase of 26%. Sale of Property including ready built factory sales, residential sales and other land/property sales decreased to Baht 256.9 million, a decreased of 60%.

The Gross Profit was Baht 2,943.2 million, a 64% increase from the same period of last year. Earnings Before Interest Tax Depreciation and Amortization (EBITDA) were Baht 2,333.4 million. The Gross Profit Margin and EBITDA Margin were 46% and 36%, respectively.

Significant Activities for Year of 2012
• Industrial Estate Sales were 2,317 rai with 115 contracts, 80 new customers and 35 project expansions from existing customers, all records level. Hemaraj now has 555 distinct new customers with 832 contracts including 189 automotive customers with 288 automotive contracts.
• Ready Built Factories for Rent increased 48% or 76,786 square meters from 2011 year-end cumulative balance with an additional 23,992 square meters pre-leased.
• Power Investments continued with Hemaraj’s 35% shareholding in GHECO-One IPP power project commercial operation since 26 July 2012. In March 2012, Hemaraj signed the Shareholders’ Agreement with Gulf JP to invest 25% in the 126MW SPP Power Plant in Hemaraj Rayong Industrial Land to operate in mid 2013.
• Hemaraj announced the acquisition of the land at Koh Lan Pattaya Thailand of 243 Rai for an integrated resort leisure and entertainment real estate development.
• Hemaraj acquired Rayong 2012 Co.Ltd which has an area of 2,200 rai for future industrial estate development.
• The Board of Directors approved the interim dividends from the operating results from 1 January 2012 to 30 June 2012 at Baht 0.04 per share paid on 7 September 2012.

Balance Sheet Highlights for the 12-month period ended 31st December 2012

At 31st December 2012, Hemaraj reported Total Assets of Baht 26,308 million, Total Liabilities of Baht 15,268 million and Total Shareholders Equity of Baht 11,040 million. The Net Debt to Equity ratio was 1.23 to 1 with Cash and Deposits on Hand of Baht 1,694 million.

--------------------------------------------------

For further information concerning Hemaraj Land And Development Public Company Limited (SET symbol Hemraj), please visit our website at www.hemaraj.com or www.theparkresidence.co.th or contact us by email at invest@hemaraj.com Mr. Paopitaya Smutrakalin, Director – Investor Relations Hemaraj Land And Development Public Company Limited 18/F UM Tower, 9 Ramkhamhaeng, Suanluang, Bangkok 10250, Thailand Tel: 662-719-9555 to 9 Fax: 662-719-9546 to 7