Anuphong Assavabhokhin

Chief Executive Officer

As we all know, the past 1-2 years many businesses have faced several uncertainties - domestic and international. And the advance of technology, which is faster than in the past, has led to what is known as technology disruption or digital disruption as some people prefer to call. Adding to the issues was fierce industry competition pressuring the business sector to work harder and to get better and better.

For AP, we saw these challenges as an opportunity. They made us work hard to develop our organization to be better, to develop our people to be greater and to improve our products to be better. As a result, were strengthened and able to achieve our goals, particularly in 2018. Our achievements were in three main areas.

First, in 2018 the overall business operations of AP experienced a phenomenal growth with total revenues reaching Bht 38,020 million (include 100% of joint venture projects), an increase of 30% on the previous year. Total presales of condominiums and low-rise products were Bht 41,298 million, well above projected Bht 39,800 million, due to a success in every product category, whether it be condominium, single detached house or townhome.

Second, 2018 was the year AP garnered the largest number ever of awards from many institutions, local and international, all recognized the quality of the projects we developed and our organization. Among the awards we received were Asia’s Most Influential Company of 2018 at The Asia Corporate Excellence & Sustainability Awards and Asia’s Best Condominium Developer of 2018 at Asia Property Awards. We were also voted Most Admired Company of 2018 in the real estate industry.

Third, which is very important, we were successful in every business we operates. The property agent known by the name BC, which provides a full range of property brokerage covering sale and rental in Thailand and overseas, experienced a jump in growth with the value of properties brokered reached Bht 12,000 million. Our property management business under the name SMART also grew considerably last year. SMART looks after more than 55,000 families of home-buyers at more than 200 projects developed by AP and other developers.

I have always said that success is the past. But looking forward, digital disruption has unexpectedly advanced technology. And we wonder if a strategy developed last year would still make us succeed the following year. Is our traditional vision of being a space expert for living satisfaction still sufficient or is it too narrow now ? That has brought us a major shift into a new business dimension with a new vision to be a provider of quality of life. Under the AP World, A New Vision of Quality of Life concept, we have created a blueprint for tomorrow’s good life quality complete with an eco-system we have constantly developed as we look to be the first to build a world of good quality of life.

To ensure a sustainable competitive advantage, we have launched 3 new disruptive businesses, namely 1) VAARI which provides an eco-system to support quality of life management 2) CLAYMORE which creates and drives design innovations to meet unmet needs of home-buyers and 3) SEAC which disrupts the approach to learning of people in organizations and people in society at large through new processes in collaboration with a world-class institution. These 3 new businesses form a key jigsaw that will allow us to fulfill the vision to provide good quality of life as we further strengthen with our core real estate businesses and subsidiaries.

The challenges of a disruptive world are still waiting for us. But we believe that our broadened vision to provide quality of life and to diversify into areas beyond real estate will lead AP Thailand into a new chapter of history on a steady, sustainable footing. In the end, all innovations or eco-systems developed will benefit everybody, not just AP customers.

On behalf of AP (Thailand) Public Co., Ltd., I would like to thank all shareholders, including holders of our debentures, as well as our partners for the continued confidence and support. I look forward to continuing moving forward together on our path to success.