WHA Group Forecasts Sustainable High Growth Over the Next 5 Years, with 50-Billion Baht Investment Plan Strong Focus on Smart Technologies and Digital Transformation

Bangkok, February 2, 2022 - WHA Group foresees new developments and sustainable growth over the next five years, boosted by an investment plan of THB 50 billion across its four business hubs. It forecasts a normalized total revenue and share of profits of THB 21 billion in 2026 - 1.75 times that of 2021 - while maintaining a high EBITDA¹ margin of over 40%, and the company's interest-bearing debt (IBD) to equity ratio lower than 1.2 times.

This follows a remarkable performance in 2021, with a 28 % revenue growth despite the challenging environment. Last year, the Group's revenue and share of profits amounted to THB 12 billion, with total assets reaching THB 83 billion, and a credit rating maintained at A-.

In line with the company's long-term strategic plan and thanks to its resilient business model, last year's positive result was generated altogether by growth in its Built-to-Suit warehouses driven by E-Commerce, the strong demand for Ready-Built properties, the growing sales of water products, the development of solar energy projects, and the successful asset monetization to WHART.

WHA 2021 Key Achievements

In 2021, WHA's growth strategy across its four business hubs was illustrated by a series of new projects, new partners, new products, and new investments, confirming the Group's status as a leading developer of Logistics Properties, Industrial Estates, Utilities and Power in Thailand and Vietnam.

• New projects include the launch of "WHA Mega Logistics Center Theparak KM. 21", the company's largest warehouse facility with a total building area of approximately 400,000 sq.m.; the successful development in Thailand of WHA Rayong 36, representing a total area of 1,280 rai; and the obtention of the Investment Registration Certificate for the development of the second phase (2,200 rai) of WHA Industrial Zone - Nghe An in Vietnam.
• New products encompass the supply of nitrogen by pipeline to the first industrial customers in Eastern Seaboard Industrial Estate (Rayong); the launch of Solar combined with Energy Storage System (ESS) on a water plant at Eastern Seaboard Industrial Estate (Rayong); the development of a Peer-to-Peer (P2P) Energy Trading Platform using blockchain technology to trade solar power among customers in WHA industrial estates; and new prime office solutions in 6 locations in Bangkok and Samut Prakan, representing a total space of over 100,000 sq.m.
• New partners, such as Asia Industrial Estate (AIE), which successfully established a joint-venture company with WHA Utilities and Power Plc. (WHAUP) that will provide reclamation and demineralized water to customers in Asia Industrial Estate (Map Ta Phut). The company's first customer is a chemical factory under a 15-year contract with a capacity of over 1 million cubic meters per year.
• New investments, with a THB 150-million equity investment in Giztix, a leading e-Logistics startup that provides a digital platform to connect transport and logistics operators with users; and the acquisition of a 29.40% stake in Storage Asia, a leading self-storage solution under the brand "i-Store Self Storage".

In recognition of its achievements and successes, WHA received a series of awards including 3 SET Awards in 2021: the "Rising Star Sustainability Award" for WHA Group; the "Outstanding Innovative Company Award" for the Demineralized Reclaimed Water project for WHAUP and the "Sustainable Stocks Company Award", both WHA Group and WHAUP. WHA Industrial Development Plc. (WHAID) also received the "CSR Excellence Recognition Award" from the American Chamber of Commerce (AMCHAM) for the 12th consecutive year.

"Despite another year marked by a challenging environment, with the pandemic restricting travel possibilities for our customers and international investors, we were able to achieve remarkable growth while maintaining our strong financial position and financing capability," declared Ms. Jareeporn Jarukornsakul, Chairman and Group CEO of WHA Corporation PCL. "To further sharpen WHA's competitive edge, we are implementing a digital transformation with a two-fold objective: Firstly, we aim to deliver better customer experience. Secondly, through digitalization, we are fast forwarding to high levels of operational excellence."

Business Outlook for 2022 and Beyond

With digital transformation at the core of WHA's businesses, 33 digital projects were launched in 2021, spanning all areas of the company's businesses. WHA aims to utilize digital technologies to further enhance the reliability and efficiency of its operations and differentiate its offering. In fact, WHA Smart Eco Industrial Estates are already raising the bar in terms of digitalization, with digital technologies functioning in virtually all activities, ranging from communications, mobility, security and safety, environment control, and water production and waste treatment. Located at WHA Group's headquarters at WHA Tower in Bangna, a Unified Operations Center (UOC) enables real-time monitoring of several environmental parameters in WHA industrial estates, such as air and wastewater quality, as well as water levels, traffic and safety.

The next step of WHA's Digital Transformation will consist of using technology to introduce new income streams from innovative products and services and use data as a source of competitive advantage. As part of its roadmap, WHA targets to be a tech company by 2024.

• WHA Logistics will pursue its expansion in Thailand while seeking new opportunities in Vietnam.

  In Thailand, WHA Logistics aims to further grow its geographical footprint and capture new demand in strategic locations in EEC provinces (Chachoengsao, Chonburi, and Rayong), in addition to its established and strong foothold in the Bangna-Trad area. WHA Logistics product portfolio will be enlarged from built-to-suit facilities and general warehouses to include smaller scale facilities to cater to the needs of smaller enterprises and SMEs and capture this growing segment. Internationally, opportunities will be prioritized to capitalize on the robust demand and to leverage on existing WHA capabilities in Vietnam.

  Existing and new strategic long-term partnerships will be developed with regional and global players, focusing on high-growth industries such as E-Commerce, Healthcare, and Consumer products. To further enhance the competitiveness of its products and services, smart technologies and innovations based on AI, IoT, Big Data, Automated Systems and Robotics will be favored, while opportunities in Metaverse, quantum computing and green transportation will be actively explored.

  WHA Logistics will pursue its expansion of WHA Office Solutions. Equipped with 6 prime office locations with full facilities and superior design in Bangkok and Samut Prakarn, WHA will target tenants ranging from early-stage startups to established corporations.

New projects and contracts are targeting 185,000 sq.m. in 2022. Short term contracts will represent an additional 100,000 sq.m. Total of assets under ownership and management are forecasted to reach 2,685,000 sq.m.

• WHA Industrial Development (WHAID) will cement its leadership in Thailand, enlarge its product offering, widen its presence in Vietnam.

  In Thailand, WHA Industrial Development Plc. (WHAID) is the most-ready player to capture business from the recovery, thanks to its ample land stock of 12,100 rai, including 4,160 rai available for sale in strategic locations. WHAID is particularly well positioned to benefit from production relocation from China, resulting from trade tensions, labor costs, or power shortages. WHAID's share of Chinese customers² has already significantly increased in the past 3 years to represent over 50 % of total land sales. Demand from higher-value industries has been observed, in the target S-Curve industries or Consumer products, Electronics, Food and Medical.

  Over the next five years, WHAID has more industrial estates in its pipeline. In 2022, the plan includes the expansion of WHA Eastern Seaboard Industrial Estate 4 (+ 580 rai) with construction that started in Q4 2021, as well as the construction of the first phase of WHA Industrial Estate Rayong (1,100 rai), in a Joint Venture with IRPC, scheduled to start end 2022.

  WHAID will pursue its efforts to enlarge its product offering to increase recurring revenue and reduce reliance on land sales. The supply of nitrogen gas by BIG WHA, a Joint-Venture with Bangkok Industrial Gas Co., Ltd., already operational at Eastern Seaboard Industrial Estate (Rayong), will expand its product offering to include other gases, as well as its geographical coverage to other industrial estates. WHAID will leverage on its experience developing TusPark WHA, an incubation and innovation center for startups which is already in operation near Chulalongkorn University, to move towards higher value estates or properties. WHAID will also explore business opportunities in line with Net Zero and Sustainability trends.

  In Vietnam, WHAID will build on its initial success of the Nghe An project to broaden its presence on a national basis. Phase 1 of WHA Industrial Zone - Nghe An, representing 900 rai, is completed and equipped with the highest quality infrastructure, utilities and environmental care. More than half of the area has been leased to investors from Hong Kong, Japan, Thailand, China, and Vietnam in various sectors. Due to increasing customer demand, WHAID plans to accelerate the development of next phases, including the construction of Phase 2 (2,200 rai) scheduled to start in Q1 2022. When fully completed, including Phases 1, 2 and subsequent expansions, WHA Industrial Zone - Nghe An will comprise a total of 11,550 rai.

  Following the signature of an MOU in December 2020 with Thanh Hoa Provincial People's Committee, WHAID will progress the development of two new industrial zones. ‘WHA Smart Technology Industrial Zone - Thanh Hoa', with its proximity to the province's main city, is poised to capture demand from high value technology investors, while ‘WHA Northern Industrial Zone - Thanh Hoa' strategically located near the existing Nghi Son petrochemical complex, will target intermediate and downstream industries. Land relocation and construction are expected to commence in 2023 and 2024, respectively.

  In 2021, despite travel restrictions, total land sales in both Thailand and Vietnam amounted to 855 rai. In 2022, because of sustained customer development activities, land sales are expected to increase 46% to reach 1,250 rai in Thailand and Vietnam.

• WHA Utilities and Power (WHAUP) will continue to grow its Utilities business inside and outside the Group's industrial estates, both in Thailand and Vietnam. Innovative renewable energy solutions, in particular solar energy, will be developed and initiated.
  • For Utilities, WHAUP will leverage its expertise to offer value-added water products such as wastewater reclamation and demineralized water to industrial customers both inside and outside WHA industrial estates, such as other industrial land developers, municipalities, and communities. It also plans to grow vertically by exploring alternative raw water sources to enhance water reliability and reduce raw water purchase cost. It also operates a ‘Smart Utilities Services Platform and Innovative Solution' for customers in WHA industrial estates. In Vietnam, where it owns equity stakes in 2 water companies, WHAUP will continue to explore new projects as well as M&A opportunities. This year, Utilities sales and managed volume is expected to reach 128 million cubic meters in Thailand and 25 million in Vietnam.
  • For Power, WHAUP will continue to develop renewable energy solutions and increase its capacity, from solar rooftop and waste-to-energy projects, with a cumulative target of signed Power Purchase Agreements (PPA) of 150 MW by the end of 2022. It will continue to introduce innovative technologies such as a Peer-to-Peer (P2P) energy trading system and a Smart Microgrid in industrial estates. WHAUP's 2022 total signed PPA is expected to reach 700 equity MW.
• WHA Digital Platform will empower WHA Group digitization by continuing to lay the digital infrastructure and spearheading the implementation of digital technologies across all business hubs. FTTx is now available and fully connected with all customers in 9 industrial estates, with a plan to increase the number to 11 industrial estates within 2022. WHA Digital Platform will broaden its product range to cover telecommunication towers inside WHA's industrial estates. This will include the construction of telecommunication towers and base stations as well as renting spaces on these towers to telecom operators to install necessary devices for receiving and broadcasting network frequencies including 3G, 4G and 5G. Data centers are being monetized. Successful monetization of one of the data centers under JV structure is already completed. Another WHA fully owned data center is currently under monetization process.

  WHA Digital has been set up as a new company to lead WHA Group in digital transformation and implementation of digital innovations and technologies across business hubs. WHA Digital is looking at start-ups, especially homegrown companies as key technology partners.

In line with its strategy, WHA Group plans to invest THB 50 billion over the next 5 years from 2022 to 2026. The target investment budgets for both WHA Logistics and WHAID amount to THB 18 billion each. In addition, WHAUP will invest THB 10 billion. Finally THB 4 billion has been budgeted for WHA Digital to invest in startups and new technologies and propel the Group to become a Tech company.

"We look forward to 2022 with confidence and optimism, as we expect the restrictions due to the pandemic to be lifted, while experiencing rapid economic recovery. For the next five years, we will continue the digital transformation across all our businesses, by utilizing smart technologies and innovations to boost our operations further. Our digital readiness and ability to adopt new technologies, as manifested in our investments, will have a strong impact on our company's ability to welcome investors, and therefore to transform the socio-economic status of the country, and drive the government's Industry 4.0 policy," she concluded.

¹ EBITDA: Earnings before Interest, Tax, Depreciation and Amortization
² Including Taiwanese customers