(Following is a press release of Hemaraj Land & Development Pcl via an electronic mail. The statement was confirmed by the sender.) 2013 Hemaraj Business Outlook ------------ Press Information Kit February 6, 2013 Contents Press Release: Hemaraj’s Promising 2013 Outlook SET-listed Hemaraj announces a dynamic investment plan and defines its top priorities for 2013 and beyond Hemaraj 2013 Outlook Presentation Press Release 06-02-13 Hemaraj’s Promising 2013 Outlook SET-listed Hemaraj announces a dynamic investment plan and defines its top priorities for 2013 and beyond Bangkok, 6 February 2013 - Following a record business performance in 2012, Hemaraj Land And Development Public Company Limited (Hemaraj) is set for an overall robust outlook this year. As it gets ready to mark the company’s 25th anniversary, the management of Hemaraj has indicated a 5-year investment plan of Baht 40 billion, Baht 8.0 billion of which will be invested this year to expand the company’s four business lines: Industrial Estates, Utilities, Power and Property. In addition, Hemaraj is embarking on the joint development of Hemaraj Chonburi Industrial Estate 2. Covering a land area of 640 rai (256 acres or 102 hectares), the new project is scheduled to be available in late 2013. Industrial Estates: Looking Toward Further Expansion As the original activity of Hemaraj, Industrial Estates are foreseen to continue their development and contribution to the company’s income and performance. Representing a combined land area of 36,137 rai (14,500 acres or 5,800 hectares), Hemaraj’s seven industrial estates provide facilities and services to 555 distinct customers and 832 land or factory contracts, including 188 in the automotive and 54 in the chemical/petrochemical industries. Over the past 25 years, it is estimated that the total consolidated investments generated by Hemaraj customers is approximately USD 25 billion, contributing extensively to Thailand’s development and growth. Credited for more than 45% of the company’s operating revenue, Industrial Estates still present a high potential for steep growth, thanks to several factors such as the continuing development of Thailand’s automotive industry, the increased number of Free Trade Agreements with Australia, China, India, Japan and AFTA; the relocation of some industries from flood-affected areas to the Eastern Seaboard and the overall attractiveness of Thailand towards investors from Australia, Japan and the USA. David Nardone, President & CEO of Hemaraj, said: “With our leading market position, Hemaraj Industrial Estates benefit from several competitive advantages, such as great infrastructure, environmental and town planning, industry integrated clusters, state-of-the-art utilities and the financial strength of our company”. This year, Hemaraj targets double digit revenue growth, with the projected sale of another 1,600 rai (640 acres or 256 hectares), 50 new customers and 80 contracts. Utilities: Target Revenue of Baht 2 Billion Utilities, which mainly cover water-related services from potable water supply to wastewater treatment, became a significant part of Hemaraj’s activities approximately 10 years ago. Today, it represents 22% of the company’s operating revenue. Following strong performance in 2012, Hemaraj foresees another 20% growth this year, representing a target revenue of Baht 2 billion in 2014. Two main elements are expected to help Hemaraj accomplish this objective. Firstly, the expansion of the company’s Industrial Estates has a mechanical effect that will lead to increased needs for Utilities. Secondly, several Hemaraj customers are involved in industries such as automotive, steel, petrochemical and power generation which are important users of Utilities, from raw water, potable water and clarified water to wastewater treatment and maintenance. Mr. Vivat Jiratikarnsakul, Hemaraj’s Executive Vice President explained: “As a business line, Utilities is a natural complement of Industrial Estates. The more the latter grows, the more the former is needed by our customers. Over the last ten years, we have accumulated significant expertise in environmental, water treatment and wastewater technologies. We plan to continue to leverage on the competence we have acquired in this field.” Power: Strong growth in SPP Power projects On the footsteps of GHECO-One, a 35/65 joint-venture with Glow (GDF Suez Energy International), Hemaraj holds 25.01% shareholding equity of its first SPP project (126 MW) with Gulf-J-Power Japan to operate by mid-2013. Further growth is expected from power co-generation with another seven potential SPP projects of 120 MW each. “In this sector, added David Nardone, I believe we have two factors for further growth. The first one is the significant market represented by our existing Industrial Estates. The second one is our current partnership and enriching experience with international players such as Glow GDF Suez and Gulf-J-Power Japan.” Through dividends, Power already contributes to 8% of Hemaraj’s operating revenue and is expected to double within the next five years, representing a significant driver of earnings. Property: Dynamic Development of Ready Built Factories and Logistics Parks for Rent Already contributing to a quarter of Hemaraj’s operating revenue, Ready Built Factories and Logistics Warehouses are poised for impressive expansion this year. With a projected rental area of over 120,000 sq.m, Ready Built Factories are expected to achieve over 50% growth. Logistics Warehouses, Hemaraj’s latest business product, will grow even more significantly, coming from an additional 100,000 sq.m. for rent out of 180,000 sq.m. currently under construction. Both rental-based, these two products offer the dual advantage of answering the needs of Hemaraj’s customers while providing recurring income to the company. “We believe that Thailand remains an attractive industrial base, thanks to a positive investment climate, improving market access, reasonable operating costs and good infrastructures”, explained David Nardone, “This is the reason why, for this year and beyond, we are confident that our broad-based revenue strategy, characterized by the expansion of our four business lines, will translate into better earnings predictability and superior long term returns to our shareholders, he said.” In the Property sector, following the acquisition of 258 rai (103 acres or 41 hectares) in 2012 at Koh Lan, Pattaya, Hemaraj is also gearing up to launch a fully-integrated real estate project. The master plan is expected to be completed in 2013, with the 1st phase of construction starting in 2014. -Ends- About Hemaraj Hemaraj Land And Development Public Company Limited is Thailand’s leading developer of Industrial Estates, Utilities, Power, and Property Solutions. Hemaraj develops seven industrial estates of 36,137 rai (14,500 acres, 5,800 hectares) and 700,000 square meters of Ready Built Factories and Logistics Parks. Industrial customers are automotive, petrochemical and other clusters comprising 555 distinct customers, 188 automotive customers with 287 automotive contracts, 832 land or factory contracts, and a customer investment estimate of USD 25.0 billion. Utilities include provision of 265,000 cubic meters per day of industrial water and waste water treatment. Power development operating or under planning and development are 13 projects of 2,635 megawatts with 23% Hemaraj shareholding. Hemaraj received the “Excellent” (5 logos) corporate governance recognition level from Thai Institute of Directors (IOD) in 2009, 2010, 2011, and 2012. 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 email@example.com Mr. Paopitaya Smutrakalin, Director - Investor Relations Hemaraj Land And Development Plc. 18/F UM Tower, 9 Ramkhamhaeng, Suanluang Bangkok 10250, Thailand Tel: 662-719-9555 to 9 Fax: 662-719-9546 to 7 Khun Suthatip Anantapornsuk or Khun Wandee Lerdsupongkit Hemaraj Public Relations C/O Francom Asia Tel: 02 233 4338 ext. 12 and 19 Fax: 02 236 8030 E-mail: firstname.lastname@example.org #<188905.404248.3.4.0.0.76>#
HEMARAJ TO SPEND 40 BILLION BAHT IN FIVE YEARS FOR EXPANSION
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