Preecha Ekkunagul CEO & President
Naparat Sriwanvit CFRO Nattakit Tangpoonsinthana EVP
Present to SET Sustainability Award 2018 Committee 18.09.2018
AGENDA
• Executives’ role in driving SD • SD execution • Disruptive technology • Climate change • Creating shared value • Uplift transparency and anti-corruption within industry • Build community wealth & well-Being
CentralPlaza Ayutthaya 2 “… CPN จะไม*ใช*แค*ศูนย3การค7า แต*ต7องเป=นที่ให7คนมาใช7ชBวิต..”
ดังนั้นความยั่งยืนของ CPN คือการที่ลูกค า และชุมชน พึงพอใจ ประทับใจ และรู สึกผูกพัน ดั่งมีเราเป=นส*วนหนึ่งของชBวิต
3 CHALLENGES OPPORTUNITIES
Life Style Change Destination Concept
Competition Customer Engagement Business Diversification Disruptive Technology Digital Integration Social and Community Engagement Environmental Concern Resource Efficiency Climate Change / Human Right / Aging Society
Center of LIFE strategy
Center of COMMUNITY Center of CUSTOMERS LIFE
4 Center of LIFE strategy center of community center of customers life
ò New retail destination ò Investment diversification ò Existing mall enhancement ò Geographical diversification ò New development format ò Develop new business ecosystem ò “Destination” concepts
NEW RETAIL DESTINATION DIVERSIFICATION customer shareholder / partner
PORTFOLIO MANAGEMENT OPERATIONAL EXCELLENCE customer / tenant / community employee
ò Customer engagement ; ò Talent development; marketing and merchandizing ò People engagement ò Community engagement ; ò Digital culture
environmental concern and social integration ò SD culture ò Tenant development environmental and social concerns SME & local operator development
5 TOP 5 Significant ò Top 5 in SEA by Revenue & Profitability diversified regional Leader in ò Presence across SEA countries developer in ò Revenue 13% CAGR F I N A N C I A L
N O N -F I N A N C I A L Current ò Become an integral part of customer’s life 48 assets 31 Bn THB Revenue ò Improve communities’ livelihood and well-being Mkt Cap 370 Bn THB ò Become an employer of choice ò Increase energy efficiency by 20% * ò Increase recycled water to 20% *
* By 2025 and compared to base year 2015
6 • Sustainability strategy development
• SD execution • Disruptive technology • Climate change • Creating shared value • Uplift transparency and anti-corruption within industry • Build community wealth & well-Being
7 CentralPlaza Pinklao BOARD OF DIRECTORS MANAGEMENT
Corporate Audit Committee and Board members CG-SD Committee, Executive - Ensure good governance system and audit Committee and Sub-Committee Governance control exist - Internal audit and operational audit - Oversee for CG and SD - People Development Committee
CG-SD Committee Climate and Environment Committee - Define goals, review and monitor for - Cascade and drive the climate and environmental Sustainable policy Development business sustainability, policies, system and guideline Branch CSV Initiative and Task Force - Act as SD champion to drive SD culture - Cascade and drive the CSV initiatives Corporate Governance / Stakeholder Engagement / Environmental Concerns Risk Management Committee and Risk Risk Policy Committee Task force Risk - Oversee all risk management policies, - Turn the policy and control framework into action and monitoring Management strategies, framework at corporate level - Review, supervise and ensure of KRIs and Occupational Health & Safety Committee mitigation plans - Mobilize and upgrade the safety and hygiene standards
Nomination and Remuneration People Development Committee and CPN People Committee Academy - Formulate strategies, review monitor and Development - Ensure board structure and consider appropriate strategies relating to human advise on the employee engagement and capital management and development development plan Cascading Reporting Operation level Feedback or Whistleblower C G P r i n c i p l e s ó Honesty and transparency ó Open-mindedness ó Equitable treatment ó Fairness ó Adherence to commitment ó Responsibility toward society
9 ENFORCEMENT Policy and Principle Driven REINFORCEMENT • No Gift Policy • Cashless Payment Protocol • Set Tone at the Top • Transparency and compliance policy • Sharing Practices and Core Values • Internal and operational audit • SD Champion commitment and • Internal control practices • Bidding committee • Review Code of Conduct • Integrate Financial with SD KPIs • Revised Board of directors’ role, Anti Corruption and Insider trading policy • Add more qualification of Board of directors
SD Champions SD Champions’ Commitment Alternative resources and construction management
Operational efficiency and CSV execution Community activities and local engagement
SME and local operator development
Corporate governance and supplier engagement 10 AGENDA • Sustainability strategy development • Executives’ role in driving SD
• Disruptive technology • Climate change • Creating shared value • Uplift transparency and anti-corruption within industry • Build community wealth & well-Being
11 C h a l l e n g e s I n i t i a t i v e s SDG Destination Concept Disruptive ● Center of life strategy 11.4, 11 a, Technology ● Digital strategy Digital Platform 11 b
Building Design SDG 7.2 ● Resource and Construction Management Climate Change Environmental management Mall Management SDG 12.2 12.5
● Customers ’ safety and Universal Design Aging Society convenience Mall’s Facilities SDG ● Family destination 9.3.1
SDG Supply Chain Management 10.7.1 (2 nd and 3 rd Tier Management) Human Right ● Supplier Management ● Employee Engagement SDG Employee Development 16.5 16.6 16.7
12 Center of Life Strategy Destination Concept and Partnership Digital Strategy Customer Service / Tenant Service / O2O Platform / Commercialized Application
13 Food Patio @ CentralPlaza Bangna Food Ville @ CentralFestival EastVille Eatalay @ CentralPlaza Mahachai
Krungthep Thara @ CentralWorld Durian Festival @ CentralWorld Wongnai User’s choice @ CentralWorld, CentralPlaza Nakhon Ratchasima 14 Fun Planet @ CentralPlaza, CentralFestival Aquaria @ Central Phuket Playground @ CentralFestival EastVille
Pororo Waterpark Train Ride for kids Activities for Elder and Family Wheelchair and Slope path @ CentralPlaza Bangna @ CentralWorld @ CentralWorld @ CentralWorld CentralPlaza CentralPlaza CentralPlaza CenralFestival CentralFestival CentralFestival
15 O2O - Online Fashion Brands to Offline Stores
High Fashion Meets Local Pride Texture
16 Sport shops Fitness Center Sport Anchors
Sport Activities and Events @ CentralWorld / CentralPlaza / CentralFestival
17
Daily Exercise Activities for Kids, Family and Friends Think Space
Co Working Space & Rest Area
Starbucks @ CentralWorld Creative Maker Destination @ CentralWorld
18 P A R T N E R S H I P S
Business Partner Government
Tribhum
9 Government Centers @ CentralWorld, CentralPlaza Westgate, CentralPlaza Salaya, CentralPlaza Chaengwattana, CentralPlaza Lampang, CentralPlaza NaKhon Si Thammarat, CentralPlaza Mahachai, CentralPlaza Suratthani, CentralPlaza Nakhon Ratchasima
i-Berhad Tenant & Young Entrepreneur CPNlead : CPN Leading Entrepreneur Advanced Development Program, IKEA, DUSIT, AQUARIA and etc. the 2 nd year. Gain knowledge & know-how from professionals within industry and experience real business operation in prime location. Customer Service CPN SMART Application Cashless Society / Personalize Promotion / Tenant Application / Procurement Web Intelligent parking Application
O2O Platform Fiber Optic Infrastructure / Commercialized Platform Integrate with JD.co.th LED Façade
20 Apply Alternative Resources System Operate Mall Efficiency Implement 4R in Construction Management Enhance Community and Employee Involvement
21 Central i City 22 CentralFestival EastVille Target 15 sites by 2019 6 New installation by Y2018. 6 More new on progress, plan to complete by Y2019
Expected 10% reduction for CPN usage only (compare same store)
23 Target 26 sites by 2020 10 New installation, plan to complete by Y2019. 9 More new are under studied and plan to complete by 2020.
Expected 5% reduction for total CPN, tenant and shopper usage (compare same store)
24 High Efficiency Chiller Water Conservative Awareness and LED Lighting Technology
2 Specific Energy Consumption (kWh/m ) Recycles Water (m 3) by CPN in 2017 in 2017
Good Good
Energy consumption per usage area Volume of reused and recycled water for mall operation (lesser is more efficiency) (higher is more efficiency) 25 Reduce / Reuse / Recycle / Responsible
Façade at CentralPlaza Salaya were decorated by aluminum composite fabrication with perfectly fit die-cut technique. There was zero waste from this design and technique.
CentralPlaza Salaya
Feature from CentralPlaza Rama 3 after renovation move to redecorate and installed at CentralPlaza Mahachai
@ CentralPlaza Rama 3 @ CentralPlaza Mahachai
More examples; • Reuse screw piles for temporary fences and billboards • Apply wood, vinyl and slings as temporary walls when renovation • Apply pixel tile technique for exterior tile work 26 • Relocate electric transformers for construction Cover 1,500 km2 Communities involvement 655 Volunteers (Count only CPN) 2,728 Volunteer hours
As of July 2018
Photo from CentralPlaza Bangna, CentralPlaza Westgate, CentralPlaza Chaengwattana, CentralPlaza Nakhon Ratchasima 27 AGENDA • Sustainability strategy development • Executives’ role in driving SD • SD execution
• Uplift transparency and anti-corruption within industry • Build community wealth & well-Being @ CentralPlaza Nakornratchasima
28 29 CentralWorld ò Certify CAC ò No Gift Policy ò Cashless Payment Protocol ò Code of Conduct for Employee, IR, Supplier ò Partner Engagement Meeting ò 1-on-1 Executive Meeting with Supplier ò Partner SD Due Diligence Survey Top 3 : Governance Security Social claim
Bottom 3: SD Risk Environment
30 Community Development (Wealth / Health / Pride / Mindfulness) Tighten Family Bonding
31 CentralPlaza Mahachai Marketing strategy for creating community’s wealth
PROMOTE: Community Products / Community Activities / Community Culture COVERAGE : more than 700 communities, 42 provinces, generate almost 1,000 million Baht to communities per year
32 @ CentralPlaza Udonthani @ CentralPlaza Chonburi @ CentralPlaza Suratthani @ CentralPlaza Bangna Ceramic Product @ CentralPlaza Lampang
33 Nana Banana @ CentralPlaza Phitsanulok
34 Nakhon Pathom Fish Fair @ CentralPlaza Salaya
35 Nonthaburi King of Durian @ CentralPlaza Westgate
36 CentralPlaza Suratthani
CentralPlaza Nakhon Ratchasrima
CentralPlaza Salaya
Community’s identity as Principle in Design and Construction
37 CentralPlaza Chiangrai CentralPlaza Mahachai Chaiya Boxing @ CentralPlaza Suratthani
38 International Drum @ CentralPlaza Lampang
39 MINDFULNESS: Get closer to merit and ease to listen to sermon outside temple
HEALTHY: Bring family and community to workout together
@ CentralWorld @ CentralFestival Hatyai
@ CentralPlaza Lampang @ CentralFestival Pattaba Beach
40 @ CentralPlaza Nakhon Ratchasrima Provide Service for Special Needs
Intelligent parking Lady parking Transportation hub
Children restroom
41 Children cart Wheelchair Prayer room Bonding every generation in one place Memorizing valuable time together
42 Photos from CentralPlaza Lampang, CentralPlaza Mahachai, CentralPlaza Nakhon Sri Thammarat, CentralPlaza Salaya, CentralFestival EastVille Center of LIFE Strategy TARGET TARGET 2018 2022
Revenue 31 25 29 GROWTH (Bn THB) 20% 13% New Retail Destination Growth CAGR Diversification
Satisfaction Customer Score (%) 82 81 83 85 PORTFOLIO Tenant > 85 77 77 78 80 Satisfaction MANAGEMENT Score Community Customer and Tenant Engagement 42 146 160 Community Development Events (Activities)
355,796 Y 2 0 2 5 Energy 342,241 Only 23 sites Usage 303,722 2% 20% (MWh) Same Store Energy efficiency OPERATIONAL Reduction EXCELLENCE Water 233,417 206,839 205,157 Recycle 5% 20% Energy and Water Efficiency 3 of total water of total water (M ) consumption consumption
Engagement Employee Score (%) 57 73 77 80 > 80 PEOPLE Engagement Volunteer Score Employee Engagement 318 1,774 5,000 (man) Volunteer hours