Centralplaza Chaengwattana Opened on 27 Nov 08

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Centralplaza Chaengwattana Opened on 27 Nov 08 CentralCentral PattanaPattana Plc.Plc. Property Development & Investment Opportunity Day Presentation : 4Q 2008 & FY 2008 31st March 2009 the Stock Exchange of Thailand Important Notice The information contained in this presentation is for information purposes only and does not constitute an offer or invitation to sell or the solicitation of an offer or invitation to purchase or subscribe for share in Central Pattana Public Company Limited (“CPN” and shares in CPN, “shares”) in any jurisdiction nor should it or any part of it form the basis of, or be relied upon in any connection with, any contract or commitment whatsoever. This presentation may include information which is forward-looking in nature. Forward-looking information involve known and unknown risks, uncertainties and other factors which may impact on the actual outcomes, including economic conditions in the markets in which CPN operates and general achievement of CPN business forecasts, which will cause the actual results, performance or achievements of CPN to differ, perhaps materially, from the results, performance or achievements expressed or implied in this presentation. This presentation has been prepared by the CPN. The information in this presentation has not been independently verified. No representation, warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information and opinions in this presentation. None of the CPN or any of its agents or advisers, or any of their respective affiliates, advisers or representatives, shall have any liability (in negligence or otherwise) for any loss howsoever arising from any use of this presentation or its contents or otherwise arising in connection with this presentation. This presentation is made, furnished and distributed for information purposes only. No part of this presentation shall be relied upon directly or indirectly for any investment decision-making or for any other purposes. This presentation and all other information, materials or documents provided in connection therewith, shall not, either in whole or in part, be reproduced, redistributed or made available to any other person, save in strict compliance with all applicable laws. 2 Content Business Highlights Operations Developments Financial Highlights Appendix 3 Business Highlight 2008 Business Highlights (3) 2008 total revenue(1) grew by 12% y-o-y(2) to 9,311 MB, Leading Position in Bangkok Retail Space primarily due to higher contribution from CentralWorld, continuous increase in rental rates at all properties, higher service income after adjustment of service charge (CAM Charge) CPN in Jan 08, and additional incomes from newly opened 24% Chaengwattana project. The Mall Group Financial 11% (2) 2008 net profit increased by 39% y-o-y to 2,186 MB, Future Park Rangsit supported by organic growth in core business and the efficient 5% cost control. Siam Paragon Others 5% 36% Seacon Square 5% Occupancy rate of retail properties stood at 97%, slightly MBK 2% Siam Future increased from 96% in 2007 with an evident increase in Seri Center Fashion Island 6% occupancy rate at CentralWorld and CentralPlaza Pinklao. 2% 4% Effective rental rate for retail space increased by 3% y-o-y to average 1,259 Bt/sqm/month (after special rental discount at CentralWorld). Shareholder’s Value Appreciation Operation Occupancy rate of office properties stood at 94%, slightly 5 Years CPN share price compared to SET Index and Property Index increased from last year. Take-up rate at Lardprao, Pinklao B (based price on year 2004) and the Offices@CentralWorld enhanced while that of Pinklao A Comparative index based 100 dropped in 2008. 400 350 SET PROP CPN CentralPlaza Chaengwattana opened on 27 Nov 08. 300 250 CentralFestival Pattaya Beach launched on 23 Jan 09. 200 CentralPlaza Chonburi sales progress (retail space) achieved 150 85%. The shopping complex will be opened in May 09. 100 50 Development CentralPlaza Khon Kaen sales progress (retail space) reached - 56%. The shopping complex is scheduled to open in Dec 09. - Jan-04 Jul-04 Jan-05 Jul-05 Jan-06 Jul-06 Jan-07 Jul-07 Jan-08 Jul-08 Dec-08 Note1: Total revenue includes rental & service income, food & beverage income, and other income Note2: Excluding one-time income of Bt214.3 mil in FY07. 5 Note3: Based on 4Q06 CB Richard Ellis’s report and company’s estimate as of Dec 08. The new sub-lease agreement of CentralPlaza Lardprao CPN’s shareholder approved the new sub-lease agreement of CentralPlaza Lardprao on 25 March 2009. Therefore, CPN enters into 20 years new sub-lease agreement of CentralPlaza Lardprao with Central International Development Co.,Ltd (CID) by 28 March 2009. The sub-leased assets: 1) Land : parcels of land (approximate area of 28 rais) on which CentralPlaza Lardprao project is located. 2) Buildings : Gross Leaseable Area Net Leaseable Area Occupancy Rate (%) Buildings (Sq.m) (Sq.m) As at 31 December 2008 Shopping Plaza 95,000 55,531(1) 97% Office Building 23,000 17,719 97% Parking Building 90,000 - - Total 208,000 - - Leasehold payment of totaling 16,178.3 MB (2) comprises: - Up-front payment of totaling 2,162.3 MB paid in 5 annual installments - Annual lease payment of totaling 14,016.0 MB CPN is obligated to make an investment cost at least 1,382.6 MB for asset renovation and such renovation is required to complete by 2013. However, any asset renovation or enhancement is required to seek for an approval from SRT. Note 1: The net leaseable area of the shopping plaza includes the net leasable areas of movie theatres totaling 7,500 sq.m. and the convention hall totaling 9,000 sq.m. 6 2: Please terms of payment in an appendix Operations Leaseable Area and Occupancy: Retail For CPN’s 12 existing shopping complexes, there are nine shopping centers located in Bangkok Metropolitan Area (BMA) and its vicinity, while the other three shopping centers located in provincial areas. Bangkok Metropolitan Area : BMA Leaseable No.of Occupancy Rate (2) Comments CPN Retail Develop- Land area (1) Tenants Properties ment Ownership 4Q08 3Q08 4Q07 (sqm) 4Q08 (1) 1. Ladprao Greenfield Leasehold 55,531 344 97% 99% 100% 2. Ramindra Greenfield Leasehold 17,159 79 100% 99% 99% Higher occupancy rate from the entry of two 3. Pinklao Greenfield Leasehold 55,684 277 98% 99% 91% new anchors and other retailers as a result of tenant mixed. 4. Rama 3 Greenfield Freehold 18,192 69 100% 100% 100% 5. Bangna Acquisition Freehold 57,435 303 98% 98% 99% 6. Rama 2 Greenfield Leasehold 5,937 34 100% 100% 100% 7. Rattanatibet Acquisition Freehold 76,848 222 98% 99% 99% Higher occupancy rate resulted from the 8.CentralWorld Acquisition Leasehold 184,592 464 97% 92% 93% openings of an anchor “Center Point” and other retail fashion outlets. 9.Chaengwattana Greenfield Freehold 64,917 396 91% n/a n/a Newly opened in Nov 08. Target occupancy rate at 95% for the year end 2009. CPN Portfolio in BMA 536,295 2,188 97% 96% 96% Note 1: Excluding rental agreements < 1 year, such as kiosk, carts, ATMs and coin machines. Note 2: Percentage based on leaseable area. 8 Leaseable Area and Occupancy: Retail (Con’t) Provinces Comments Leaseable No.of Occupancy Rate (2) CPN Retail Develop- Land area (1) Tenants Properties ment Ownership 4Q08 3Q08 4Q07 (sqm) 4Q08 (1) 1. Pattaya Center Greenfield Leasehold 15,227 140 100% 100% 100% 2. Chiangmai Acquisition Freehold 76,321 531 99% 99% 98% 3. Pattaya approx Greenfield Freehold n/a n/a n/a n/a The openings of project was in Jan 09. Festival 58,500 CPN Portfolio in Provinces 91,548 671 99% 99% 98% Total CPN Portfolio for Retail Properties 627,843 2,859 97% 97% 96% CPNRF Properties CPNRF Retail Properties 1. Rama 2 Greenfield Leasehold 93,307 321 99% 99% 99% Please see CPNRF. 2. Rama 3 Greenfield Freehold 39,961 228 97% 96% 92% Please see CPNRF. Total CPNRF Portfolio 133,268 549 98% 98% 97% Note 1: Excluding rental agreements < 1 year, such as kiosk, carts, ATMs and coin machines. Excluded leaseable area of newly opened CentralFestival Pattaya Beach . Note 2: Percentage based on leaseable area. Note 3: Leaseable area of Rama II and Rama III, which are under CPNRF, include rental agreements < 1 year such as kiosk, carts, ATMs and coin machines 9 and CPN acts as the property manager. Leaseable Area and Occupancy: Office & Residential Leaseable No.of Occupancy Rate (2) Comments Develop- Land Office area (1) Tenants ment Ownership 4Q08 3Q08 4Q07 (sqm) 4Q08 (1) 1. Ladprao Greenfield Leasehold 17,719 56 97% 99% 86% An anchor moved to CentralPlaza Pinklao 2. Pinklao A Greenfield Leasehold 22,426 48 85% 86% 91% 3. Pinklao B Greenfield Leasehold 11,334 40 92% 84% 75% Opened in 1Q06 after completion its conversion from residential to Grade B office building. 4. Bangna Acquisition Freehold 10,007 27 97% 100% 98% 5. CentralWorld Acquisition Leasehold 82,794 109 96% 96% 95% Total 144,280 280 94% 94% 93% Leaseable area (1) Occupancy Rate (2) Residential (sqm) 4Q08 3Q08 4Q07 1. Bangna 1,907 55% 61% 57% Strata title, Asset for sales 2. Langsuan 4,466 75% 81% 74% Leasehold furnished apartment Total 6,373 69% 75% 69% Note 1: Including retail space. Excluding storage. Note 2: Percentage based on leaseable area. 10 Contract Types Types Revenue recognition 72% Fixed Rent 72% • Increase rental rate by Rental income Short term rent 6-8% p.a. • realize on monthly basis • Approx. 1/3 of rental contract (up to 3 years) expires every year Service fee Monthly basis collection 28% • realize on monthly basis % of Sales Utility fee • Tenants: Food centers, • realize on monthly basis Contracts Cineplex and international brands such as “Mac Donalds, KFC ...” Up-front payment 28% • Percentage ranges from 10% - 30% of sales • realize throughout lease contract period on Long term lease • Includes minimum guarantees straight line basis (up to 20 years) Up-front collection Service & Utility fees • Collect and realize on monthly basis Note1: Percentage based on occupied area.
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