VISION Together, we are passionate about creating vibrant lives by continuously innovating urban living solution based on major transport systems. MISSION We’re number one in mass transit living through ambition, determination & innovation. We pursue optimization of capital, people development & ethical behavior CORE VALUES MINDSETS OPERATIONAL Self Assertion EXCELLENCE Self Examination PEOPLE Self Mastery CUSTOMER CENTRIC INNOVATION Self Reflection Self Ignite ORGANIZATIONAL / HUMAN RESOURCE DEVELOPMENT Self Advancement TO DELIVER URBAN LIVING SOLUTIONS TO IMPROVE THE QUALITY OF URBAN LIFE PROJECT : IDEO MOBI ASOKE ANANDA IS CHANGING THE DEFINITION OF URBAN LIVING ANOTHER RECORD YEAR 016 saw the beginning of the harvest 2period for Ananda as investments made after we raised capital at the IPO begin to bear fruit. The company achieved a 65% growth in the value of units transferred to customers to a record of 15.9 billion Baht. Some of the transfers came from the completion of our first joint Venture project with our partner Mitsui Fudosan, Ideo Q Chula Samyan, launched in September 2013 So the value of transfers attributable to Ananda is less than the total transferred as 49% of the value is ‘owned’ by our partner. The increase in the value of transfers attributable to Ananda grew 65% to a record 15.9 billion Baht Total Annual Transfers From 2012 To 2016, And Value Of Transfers Deducting Mitsui’s Share Of JV his continues Ananda successful T track record in achieving its growth plan of achieving over 48 Billion Baht in transfers by 2019. 5-Year Business Plan Backlog 41.2 Billion Baht 66% of 2017 transfers secured by Backlog n 2016 Ananda launched 8 condominium Iprojects launched worth a combined 20.7 billion Baht. QUARTER SALES PROJECT LOCATION OF LAUNCH PERCENTAGE Ideo Thaphra Interchange Phetchakasem Road, Bangkok Yai, Bangkok Quarter 1 29.7% Unio Sukhumvit 72 Soi Sukhumvit 72, Sukhumvit Road, Samutprakarn Quarter 3 41.4% Unio Rama 2-Thakham Soi Thakham, Rama II Road, Bangkhunthien, Bangkok Quarter 3 43.5% Venio Sukhumvit 10 Soi Sukhumvit 10, Sukhumvit Road, Klongtoei, Bangkok Quarter 3 89.3% 2015 - 2019 : 5 Times Growth *NOTE : The 5-year plan has assumption of no new capital and keeping net interest bearing debt ratio at 1:1 QUARTER SALES PROJECT LOCATION OF LAUNCH PERCENTAGE Ideo Mobi Asoke Petchaburi Road, Huaykwang, Bangkok Quarter 3 67.8% Ideo Sukhumvit 93 Sukhumvit Road, Prakanong, Bangkok Quarter 4 74.5% Ideo Mobi Sukhuvmvit 66 Sukhumvit Road, Bangna, Bangkok Quarter 4 40.2% Ideo Phaholyothin-Chatuchak Phaholyothin Road, Phayathai, Bangkok Quarter 4 38.3% Our subsidiary company Helix also launched its new Venio brand at Sukhumvit 10 in a project worth 861 million Baht OUR PARTNERSHIP DEEPENS nanda concluded a joint venture with AMitsui Fudosan, Japan’s largest real estate developer by revenues in 2013 and announced its first joint project – Ideo Q Chula-Samyan in the same year. Since then the partnership has gone from strength to strength with another 3 joint projects launched in 2014 and another 5 joint projects launched in 2015 bringing the total development value of our joint ventures to over 45 billion Baht in nine projects. In 2016 we announced an additional 25 billion Baht in 6 projects bringing the total value of joint venture projects to 70 billion Baht in 15 projects 2016 also saw the first completion and transfer of a joint venture project at Ideo Q Chula Samyan. Completed ahead of schedule in September 2016, we successfully transferred 1,442 units worth 6.1 billion Baht our of a total of 1,598 units worth 6.8 billion Baht in just 3 months TECHNOLOGY LEADERSHIP nanda expanded its commitment Ato innovation in 2016 with a new strategy based around Ananda being an UrbanTech company. The activities launched in 2016 related to this included things such as hosting Digital Ventures incubator, running a hackathon event with Hubba and hosting the launch of Line Finance. These activities will expand dramatically in 2017 as Ananda reveals its strategy to transform innovation in the company. SMART OFFICE n 2016 Ananda moved in to its new home first time in Asia, such as Samsung’s Ion the top two floors of the FYI Center smart cloud printing and Cisco’s on Rajada road. The office includes SmartSpace. leading innovative design to provide These technologies are part of the the best possible work environment for investment made in facilities and staff Ananda staff. to allow Ananda to achieve its revenue In addition, the company collaborated growth targets without increasing with Samsung, Cisco and Fujitsu to headcount by the same degree. create the smartest office in Asia, deploying several technologies for the SERVICED APARTMENT PROJECT n accordance with the company strategy of Idiversifying revenue sources and increasing the proportion of the company’s revenue coming from recurring sources, the company leased a plot of land on Rajada planned to be its first serviced apartment project. IR AWARD he company is very proud that its T commitment to the best possible corporate governance and transparency to investors has been recognised by the Stock Exchange of Thailand with the company being awarded Best Investor Relations 2016 CONTENTS Vision Mission & Core Value 004 Financial Highlights 024 Chairman’s Statement 026 Message from the CEO 028 Board of Directors 030 Audit Committee 032 Executive Committee 033 Report of the Audit Committee 034 Report of the Risk Management Committee 036 Nature of Business 037 Revenue Structure 060 Risk Factors 061 General Information 064 Shareholders Structure and Dividend Payment Policy 075 Management 077 Good Corporate Governance 117 Internal Controls and Risk Management 145 Related Party Transactions 149 Management Discussion and Analysis 190 Responsibility of the Board of Directors for Financial Reporting 202 Independent Auditor’s Report 203 Financial Statement 208 FINANCIAL HIGHLIGHTS 2016 2015 2014 Pre-sales (Million Baht) 25,175 26,235 20,898 Transfers (Million Baht) 15,866 9,598 9,678 SUMMARY OF FINANCIAL STATUS (MILLION BAHT) Cash on hand 2,183 2,573 2,477 Total Assets 25,366 20,471 17,088 Total Liabilities 14,612 11,743 10,175 Shareholders’ equity 10,754 8,727 6,913 OPERATIONAL PERFORMANCE (MILLION BAHT) Revenue from sale of real estate 9,780 9,598 9,678 Revenue from Project Management Services & Comission Income 1,243 961 522 Construction Service Income 539 45 0 Total Revenues 12,230 11,025 10,580 Gross Profit 4,043 4,159 3,927 Selling & Administration& Other expenses 2,516 2,152 2,063 Net Profit (Loss) 1,501 1,207 1,301 VALUE/SHARE (BAHT/SHARE) Book value per share 3.2 2.6 2.1 Earnings per share 0.42 0.36 0.39 FINANCIAL RATIOS Return on Assets (%) 6.6 6.4 8.8 Return on Equity (%) 15.4 15.4 20.3 Gross Profit (%) 34.5 38.7 37.6 Net Profit (%) 12.3 10.9 12.3 D/E Ratio (times) 1.4 1.3 1.5 Total Annual Transfers From 2012 To 2016, And Value Of Transfers Deducting Mitsui’s Share Of JV CHAIRMAN’S STATEMENT his year particularly the latter part Thas been overshadowed by the passing of His Majesty King Bhumibol Adulyadej on 13 October 2016. The Board of Directors, Executive Management and all staffs at Ananda Development Public Company Limited would like to humbly express our deep sorrow for the loss of His Majesty the late King Bhumibol with utmost gratitude for his boundless kindness. The loss had wider effects and we saw the actions taken by the new American of its own. The company will continue that estimates of business activity President that affects Asia, but Thailand to fulfil all its responsibilities, both towards the end of the year were revised has not been mentioned as a target for to stakeholders and to the wider downwards as the nation entered any direct actions. community. a period of mourning. However, the With economic, political and other I would like to congratulate the management and staff of Ananda disruptions coming faster than ever we staff of Ananda for being awarded still managed to achieve the targets believe its critical that Ananda improves Investor Relations of the Year by the promised to our shareholders, despite even further its ability to act with agility Stock Exchange of Thailand. We take these targets being very ambitious. An to changes in the market place. 2016 corporate governance and investor achievement that illustrates both the saw new activities aimed at boosting relations very seriously and we capability and determination of our Ananda’s rate of innovation and we appreciate this being recognised. personnel at Ananda as well as the are committed to further increasing robustness of the strategy implemented On behalf of Ananda Development innovation boosting activities going by senior management. Public Company Limited I would forward, and also to expand on our like to convey my appreciation to the The approval by the Cabinet of the “ecosystem support” that benefits shareholders, customers, financial Royal Thai Government of new mass not only Ananda but also the wider institutions, members of the press and transit lines totalling 112 kms with a innovation community and thus the business partners for their support in total investment value of 232 billion entire nation. helping bring Ananda to this point where Baht was a positive sign for Ananda In 2016 the company also continued we are now realizing our true potential. and will expand the scope for Ananda to fulfil its obligations to the wider I would also like to thank the Board of to implement its strategy of mass community. The company continued Directors, executives and staff for the transit living and continue to generate its support of Habitat for Humanity.