WHA Group Braces for “Exponential Growth” in 2019

Shown in photo on the left:

1. Ms. Jareeporn Jarukornsakul (center), Chairman of the Board and Group Chief Executive Officer, WHA Corporation PCL.
2. Mr. David Nardone (left), Group Executive Industrial and International, WHA Industrial Development PLC.
3. Mr. Wisate Chungwatana (right), Chief Executive Officer, WHA Utilities and Power Plc.

Shown in photo on the right:

1. Ms. Jareeporn Jarukornsakul (center left), Chairman of the Board and Group Chief Executive Officer, WHA Corporation PCL.
2. Mr. David Nardone (center right), Group Executive Industrial and International, WHA Industrial Development PLC.
3. Mr. Wisate Chungwatana (left), Chief Executive Officer, WHA Utilities and Power Plc.
4. Mr. Kraitos Ongchaisak (right), Chief Executive Officer, WHA Infonite Company Limited

Bangkok, January 30, 2019 – WHA Group today unveiled its 2019 business plan aiming for exponential for growth in its 4 business hubs with the revenue and share of profit expected more than 70 %; Logistics to add 200,000 s.qm. of premium facilities and raise an additional THB 5,750 million via its REITs, Industrial Development expecting 1,600 rai land sales, Utilities and Power to reach 120 million cu.m. of water sales and managed volume and 570 installed power equity MW, while Digital Platform is on the path to complete digitizing all the group’s estates.

2018 saw WHA Group once again reiterating itself as Thailand Number 1 Developer of Logistics, Industrial Estates, Industrial Utilities and Power and Digital Platform, with an estimated Revenue and Share of Profits of THB 11 billion and Total Asset Value of THB 78 billion.

“2018 was another remarkable year for WHA Group in which the group not only delivered solid financial results, but also laid several steps to further extend our leadership and strengthen our strategic foundations to position for an exponential growth in 2019,” said Ms. Jareeporn Jarukornsakul, WHA Group Chairman of the Board and Group Chief Executive Officer.

During the past years, the group has formed a number of strategic partnerships with industry leaders including a joint-venture with IRPC to develop a new industrial estate in the EEC; a joint-venture with Gulf, Mitsui, and Tokyo Gas for natural gas distribution in three of the group’s industrial estates, and cooperation with several undisclosed global major e-commerce players to develop E-Commerce Parks as well as other several projects.

Beyond Thailand, the group commenced construction in its first industrial estate project in Nghe An, Vietnam where WHA Utilities and Power will also provide water and wastewater solutions to the customers. The group further captured synergies across the four hubs by providing its unique product offerings currently include FTTx, solar rooftop, and on-premise water solutions to its existing large industrial customer base.

“We plan to deliver even higher growth in 2019. We remain optimistic despite a possible global economic slowdown,” continued Ms. Jareeporn. “Indeed, some of the key macro risks could result in opportunities for us. Specifically, the China-US trade tensions may have a positive effect on our businesses due to the diversion of trade and investment to Thailand and Vietnam for some industries like automotive, electronics, machinery and equipment. In fact, a recent surge of Chinese investments and inquiries have already been observed in our estates,” she added.

Looking ahead in 2019 and beyond, WHA Group’s strategic directions will focus on raising the bar for its core businesses, further embracing innovation and smart technologies, continued developing win-win collaborations with industry leaders, as well as maximizing the Group’s unique business synergies.

1. Logistics Business to Expand another 200,000 sqm, bringing the area under Ownership and Management to 2,500,000 sqm, and to raise an additional THB 5,750 million via REIT platform.  WHA Logistics will focus on advancing its partnership with major conglomerates and industry leaders, capitalizing on government policies with a focus on prospective e-commerce, aviation and aerospace industries, and generating higher value via smart technologies and innovation with the aim to extend its area under ownership and management from 2,300,000 sqm to 2,500,000 sqm.  Pipeline projects to be launched in 2019 include WHA E-Commerce Park in Chachoengsao, WHA-JD E-Commerce Center and WHA Mega Logistics Center Laem Chabang 2.  The hub is also exploring opportunities to expand into CLMV with a focus on Indonesia and Vietnam.  The Asset Monetization program will also continue with an additional  THB 5,750 million via its THB 34,300 million REIT platform.
2. Industrial Estate Business to further Extend Thailand Leadership and Continue its Regional Expansion. From being Thailand’s leader to becoming ASEAN champion, WHA Industrial Development has taken steps to embrace smart innovations and technologies to further enhance its widely-recognized world-class quality and high environmental reputation to ensure the best products to serve its customers. The company will open one more estate in Thailand this year, bringing total industrial estates in operation to 11 estates, with 10 estates in Thailand (9 of which have already been approved as EEC industrial promotional zones) and 1 estate in Vietnam. WHA Industrial Development possess more than 68,500 rai of land in total, of which the company plan to develop 2,650 rai this year, increasing the land in operation and under development to 43,150 rai, and target to conclude 1,600 rai of land sales, mostly to the 12 S-curve industries, by the year end.
3. Utilities and Power Business to Reach 120 Million Cubic-Meter of Water Sales and Managed Volume and 570 Installed Equity MW of Conventional and Renewable Power as well as to Expand Water and Energy Solutions to Clients.
   • - In Water Utilities Business, WHA Utilities and Power will extend its water expertise to non-WHA industrial estates in both Thailand and Vietnam, and will continue to widen the breadth of its product offering to include wastewater reclamation, reversed osmosis (RO) water, and demineralized water. Innovation and adoption of new technologies, such as the use of Internet of Things (IoT), will be applied to provide Smart Water Solution with the first phase taking place at WHA Eastern Industrial Estate (Map ta Phut).
   • -  In Power business, WHA Utilities and Power will pursue its aim to become a specialist in providing total-solution energy services to industrial users. Renewable energy will be the key focus, especially solar power in Thailand and Vietnam. While in conventional power, WHA Utilities and Power will continue to strengthen its collaboration with long-term partners namely Gulf, Glow, and B Grimm. The partnership with Gulf, Mitsui, and Tokyo Gas in natural gas distribution business will also start adding the new line of service to the group’s customers as well as the revenue to the company. New technologies and growing trends are also under studies including smart grid, energy storage system, captive gas power plant and floating solar.
4. Digital Platform Business to Complete Digitizing All the Group’s Estates in 2019. Currently, WHA Infonite has 4 data centers, including Supernap joint-venture, the only Tier 4 Data Center in Asia Pacific (excluding Australia), and provide FTTx in 5 of the group’s estates. WHA Infonite aims to expand customer base and service coverage to include all estates by year end as well as add the use of smart technologies in the group’s distribution centers, industrial estates, and other businesses.

“We are confident that 2019 will deliver remarkable financial performance with the plans we have implemented and prospective projects in hand. We expect the revenue and share of profit to expand more than 70% from last year with healthy EBITDA margin above 30% and our balance sheet to remain strong with Interest-bearing-debt to Equity below 1.1 times. Our group has now reached a size and level in its development that enable us to look at the future with confidence and pride. We have the strength and capabilities to find solutions in each situation to grow our company further, together with our customers, our business partners and our people,” concluded Ms. Jareeporn.