HEMARAJ ANNOUNCES 2011 NET PROFIT OF BAHT 537 MILLION

Bangkok--29 Feb--BrandComm HEMARAJ ANNOUNCES 2011 NET PROFIT OF BAHT 537 MILLION - NORMALIZED NET INCOME (NNI) FOR THE YEAR 2011 WAS BAHT 780.2 MILLION - INCREASES 2012 INDUSTRIAL LAND SALES FORECAST TO 1,700 RAI Hemaraj Land And Development Public Company Limited announced its operating and financial results for the year of 2011 as summarized below. Net Profit For the Year 2011, Hemaraj reported Total Net Income of Baht 536.6 million, or a decrease of 62% compared with the same period of last year restated. Earnings per-share was 0.055 Baht per share, representing a decrease of 62% from the same period of last year. The decrease of Net Income for the year of 2011 was partially due to the changing of accounting method from percent completion method to transfer of title method, based on new financial reporting standards issued by the Federation of Accounting Professions. In addition, there was an unrealized foreign exchange translation loss for Gheco-One of Baht 243.6 million in 2011 compared to an unrealized foreign exchange translation gain of Baht 418.3 million in 2010. Normalized Net Income (NNI) for the year 2011 was Baht 780.2 million. David Nardone, President and CEO of Hemaraj Land And Development Public Company Limited had the following comments on the company’s performance. “Hemaraj Land And Development Public Company Limited posted strong results for 2011 in all areas of our business. We broadened product and revenue sources while continuing investments that will strengthen our future. Customer investment from the automotive and industrial equipment industry and notably from Japan resulted in 2011 Industrial Estate Sales of 1,670 rai (668 acres or 267 hectares), #1 market share, with 74 contracts, 49 new customers and 25 project expansions from existing customers, all record levels. Ready Built Factories for Rent in 2011 grew by 52,594 square meters or a 49% increase from the 2010 cumulative balance. The 2011 results also reflected a change in Thailand accounting for revenue based on transfer method that impacted our results and profitability with a lagging effect throughout the year. Reflecting this, our 2011 revenue performance was still pretty good with Total Revenue of Baht 4,150.5 million, a 3% increase or 4% decrease from our 2010 original Total Revenue or 2010 restated Total Revenue respectively. Total Net income was Baht 536.6 million or on a Normalized Net Income (NNI) basis, Baht 780.2 million, comparable to the original NNI for 2010 when you take out unrealized foreign exchange translation gains or losses from either year. Thailand experienced unprecedented flooding in the north central area and the northern part of Bangkok in October 2011 just months after recovering from supply disruptions from Japan. The flooding had no direct impact on Hemaraj industrial estates and customers, due to our strategic locations and elevations. We regret the loss and indirect supplier disruptions, now just returning to more normal levels including our utility volumes. At this time, we implemented continuity procedures and provided technical and financial assistance to employees, community, industry and government. The automotive production for Thailand, due to the supply line disruptions noted, resulted in lower 2011 vehicles production of 1.457 million vehicles, down from an earlier forecast of 1.8 million vehicles (#12 global). The forecast for 2012 will recover to 1.9 million vehicles and to 2.5 to 3.0 million vehicles over the next 3 to 6 years. The investment policy of Hemaraj will continue in core business areas - industrial estates, utilities, power, and properties. We see an accelerated demand for ready built factories for rent, new logistics parks, and an increase in utility capacity. Thailand is attractive to investors in automotive and other industries due to cost, currency, and market access, resulting in increased industrial estate demand. We are increasing our 2012 industrial estate forecast to 1,700 rai from our 2012 budget of 1,500 rai. In power development, our Baht 4.5 billion investment and 35% shareholding in the Gheco-One 660 MW IPP power plant is projected to operate in the second quarter of 2012. In addition, we are pursuing to participate in up to 8 SPP power plants with a 25% shareholding. The Hemaraj broadened revenue strategy is increasing growth opportunities while reducing the risk profile of the company. As the power investments start to produce dividends and the accounting catches up with the business, this will increasingly be reflected by superior long term returns to shareholders.” Revenue and Results of Operations for Year of 2011 Hemaraj was impacted by the change in accounting method in Thailand. For the year of 2011, Hemaraj’s Total Revenue was Baht 4,150.5 million compared with restated Baht 4,322.1 million for the same period of 2010, representing a 4% decrease. Total Operating Revenue from core businesses was Baht 4,231.6 million, a 5% decrease from the same period of 2010. Industrial Estate Land Sales for the year of 2011 including Profit from Associated Industrial Estate were Baht 1,784.5 million or a 17% decrease. However, there is an additional Baht 1,893 million in deferred revenue, with recognition based on the transfer date, from Industrial Estate land sales not recognized to date, based on new financial reporting standards issued by the Federation of Accounting Professions for industrial estates development and representing sales that will be recognized primarily over the next 3 to 18 months. Industrial estate utilities increased to Baht 1,161.9, or an increase of 20% reflecting the higher utility volumes and the consolidation of Hemaraj SIL and Hemaraj RIL. Total Utilities which includes industrial estate utilities, dividend from power utilities associates, and other utilities and services fees were Baht 1,230.3 million, an increase of 15%. Total Rental Property and Services Revenue including ready built factory rental, pipe-rack rental, and commercial office rental increased to Baht 573.1 million, an increase of 19%. Sale of Property including ready built factory sales, residential sales and other land/property sales decreased to Baht 643.6 million, a decrease of 14%. The Gross Profit was Baht 1,789.9 million, an 11% increase from the same period of last year. Earnings Before Interest Tax Depreciation and Amortization (EBITDA) were Baht 1,287.9 million. The Gross Profit Margin and EBITDA Margin were 43% and 31%, respectively. Significant Activities for the Year of 2011 - Industrial Estate Sales in 2011 were 1,670 rai with 74 contracts, 49 new customers and 25 project expansions from existing customers, all records level. Hemaraj now has 475 distinct new customers with 717 contracts including 167 automotive customers with 254 automotive contracts. - Caterpillar purchased 272 rai in total at Hemaraj Rayong Industrial Land for 2 divisions to support its expansion in the Asia Pacific/Africa region. - Investments continued with Hemaraj’s 35% shareholding in GHECO-One IPP power project to operate in Q2’2012 and 8 SPP power projects under development. - Industrial Estate Utilities revenue increased 20% reflecting higher volumes and consolidation of Hemaraj Saraburi Industrial Land and Hemaraj Rayong Industrial Land since Q4’2010. - Ready Built Factories for Rent in 2011 increased 49% or 52,594 square meters from 2010 with an additional 30,000 square meters pre-leased and pre-sold for 2012, all record levels. Activities after Year of 2011 - The Board of Directors recommended the dividend of Baht 0.030 per share from the second half operating results or the total dividend for 2011 was Baht 0.055 per share, to be considered at the Shareholders Meeting. Balance Sheet Highlights for the 12-month period ended 31st December 2011At 31st December 2011, Hemaraj reported Total Assets of Baht 20,009.7 million, Total Liabilities of Baht 10,880.6 million and Total Shareholders’ Equity of Baht 9,129.1 million. The Net Debt to Equity ratio was 0.78 to 1 with Cash and Deposits on Hand of Baht 3,994.3 million. *Normalized Net Income (NNI) Hemaraj has no loan in USD, while holding 35% in Gheco-One which has outstanding loans in USD. Under Thai GAAP, Gheco-One’s outstanding USD loan is converted at quarterly end and year-end to THB at the then current exchange rate. Any differences in the THB outstanding loan amount due to using a different exchange rate compared to last year leads to an unrealized FX gain (THB appreciation) or loss (THB depreciation). Hemaraj uses equity method to take that unrealized FX gain or loss to consolidate its financial statements. In Hemaraj’s view the unrealized FX gain or loss should then be viewed separately from operating revenue, particularly as cash flows are primarily hedged. For further information concerning Hemaraj Land And Development Public Company Limited (SET symbol Hemraj), please visit our website at www.hemaraj.com or www.theparkresidence.co.th or contact us by email at [email protected] Mr. Paopitaya Smutrakalin, Director — Investor Relations Hemaraj Land And Development Public Company Limited 18/F UM Tower, 9 Ramkhamhaeng, Suanluang, Bangkok 10250, Thailand Tel: 662-719-9555 to 9 Fax: 662-719-9546 to 7