Central Pattana Plc. Property Development and Investment Corporate Presentation: 1Q12 Performance Review
CentralPlaza Udonthani Disclaimer
. 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.
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Note: All currency figures within this presentation are presented in Thai Baht unless otherwise stated. 2 Agenda
► Company Overview
► Operations
► Future Developments
► Financial Highlights Company Overview Business Overview
Highlights Recent Achievements
CPN is the leading retail property developer and “Excellence CG Scoring” honored the company’s investor in Thailand with a 22% market share in corporate governance performance. Bangkok’s mall leaseable area. “ICSC Best of the Best Award - Design and CPN manages 18 shopping centers, 7 office towers, Development – CentralWorld” honored and 2 hotels, and 2 residential properties in Thailand. recognized the most outstanding shopping center design and development of CentralWorld. CPN continuously achieves strong growth of shopping complex through green-field developments, acquisition & “CNBC Best Mixed-Use Development Award” redevelopments and asset enhancement projects. honored the unique and exceptional design and environment concerns of CentralWorld. CPN is a fully integrated retail developer with unparallel synergies with its major shareholders, Central Group and “A+ Credit Rating” was affirmed with stable outlook Thailand Equity Fund, and unmatched financing capability by TRIS Rating in September 2011. through its property fund.
CPN is the largest retail property developer on Stock Exchange of Thailand (SET) with a market capitalization of approx. USD 3.1 bn (1).
CPN is the property manager and largest shareholder (28%) in Thailand’s largest REIT - CPN Retail Growth Leasehold Property Fund (CPNRF) with a market capitalization of approx. USD 683.3 mil (1).
Source: SetSmart as of 30 March 2012. 5 Strong Development & Acquisition Pipelines
2009 Opened “CentralFestival Pattaya Beach”, “CentralPlaza Chonburi” AND “CentralPlaza Khon Kaen”
1980 2010 Established under Opened “Hilton Pattaya Beach Hotel” 2002 “CentralPlaza Co., Ltd.” 2011 Opened Opened “CentralPlaza Chiangrai” and 1982 Opened 2008 “CentralPlaza “CentralPlaza Phitsanulok“, and “CentralPlaza Ladproa” Rama 2” Opened “CentralPlaza 1995 Opened ”CentralPlaza Rama 9” The first integrated Chaengwattana”
Development “CentralPlaza
shopping complex in Pinklao” AND 1997 Opened 2012 “CentralPlaza Thailand “Central Center Opened “CentralPlaza Udonthani”
field Pattaya” Ratchada Rama 3” (Phase 2) -
1993 2012 (NEW)
Green Opened Open“CentralPlaza Suratthani” “CentralPlaza and “CentralPlaza Lampang” Ramindra”
1996 Acquired full equity stake in 2013 (NEW) “CentralPlaza Chiangmai Airport” Open “CentralPlaza Ubonratchathani” and “CentralFestival Hatyai” 2000 2002 and “CentralFestival Chiangmai” Completed “CentralPlaza Acquired Chiangmai Airport Phase 2A” “CentralWorld” 2006 2009 (Formerly World Completed “CentralWorld” 2001 Trade Center) 2004 Acquired “CentralPlaza Udon Thani” (formerly Charoensri Complex) Acquired full equity stake in Completed “CentralPlaza Bangna” “The Offices at CentralWorld” CPN current portfolio: 2003 Acquired “CentralPlaza Rattanathibet” (Formerly 18 Shopping Centers Siam Jusco Rattanathibet) AND completed 5 Projects Under
Acquisition & Redevelopment&Acquisition 7 Office Towers “CentralPlaza Chiangmai Airport Phase 2B” Development
Source: Company data and company estimates as of 31 March 2012. 6 Leading Market Share of Mall Retail Space in BMA
CPN is the leading retail property developer and investor in Thailand with approximately 22% market share in Bangkok Metropolitan Area’s shopping mall leaseable space.
CPN 22%
Other The Mall Group 45% 9%
Future Park Rangsit 4% Siam Paragon 4% Fashion Island Seacon Square 3% Siam Future 7% 6%
Source : Company estimate as of 30 June 2011. 7 Strategic Shareholders
CPN is one of the flagship businesses of the Central Group (Chirathivat Family). As a strong and supportive shareholder, the Chirathivat family brings to CPN a wealth of retail-related expertise through the family’s long record and successful leadership in Thailand’s dynamic and competitive landscape of shopping mall developments and department store / specialty stores operations.
Local funds 20%
Chirathivat Family 32% Foreign funds 66% Individuals 14%
Central Group Others (Free float) totaling 59% 41%
Central Group 27%
Source : Company estimate as of 13 March 2012. 8 Strategic Shareholder: Central Group
CPN’s strong synergy with the Central Group helps CPN to attract dynamic tenants, increase people traffic and command higher rents.
The Central Group and Chirathivat Family
59% 100% 67% 100%
Central Pattana Central Retail Centara Hotel Central Marketing (CPN) Corporation (CRC) (CENTEL) Group (CMG)
Owner, developer, and Owner of retail chains Owner of Centara hotel, Owner of international retail manager of shopping centers including resorts, and convention franchisees for; and mix-used complex Central Department Stores, centers, and also - Cosmetics : Clarins, Robinson Department franchisees of fast-food Elizabeth Aden, Payot... Stores, ZEN Department retail chains including - Apparel : MNG, G2000, U2, Store, la Rinascente KFC, Mister Donut, TOPSHOP, Dorothy Perkins, Department Stores, Auntie's Anne, Pepper agnès b, Hush Puppies, Lunch, beard papa’s, Power Buy, Super Sports, Wrangler, Lee, FCUK, Cold Stone, Chabuton, B2S, homeworks, Energy, Miss Sixty... Ootoya, Yoshinoya Tops Supermarket, Office - Others : Samsonite, Pentax, Depot, etc. Guess watch, Casio....
9 Fully Integrated Business Platform
CPN is the only retail developer in Southeast Asia with a fully integrated business platform that will allow it to expand on a sustainable basis and achieve operational enhancements and success with its synergies with the Central Group of companies.
CPN will use this integrated business platform to expand further throughout Thailand, maintaining market share in Bangkok while increasing market share in the Provincial area. CPN will also utilize this optimal business platform in its expansion into neighboring countries.
Central Group CPN CPNRF – Property Fund Largest and most popular retail Leading retail developer, property Largest property fund in Thailand chains in Thailand manager and investor in Thailand with Provide optimal funding source: market share of 22% of Bangkok’s mall . Guarantee space take-up with . Unlock CPN’s asset value successful brands and store saleable area concepts Integrated development, leasing and . Free up capital for business expansion . Increase people traffic property management teams have ensured continuous success for . Lower leverage and avoid Most successful and most over 30 years dilution experienced retail company in Thailand . Strategic location Create fee base income . Attract tenants to locate in . Optimal tenant mix Improve CPN’s financial position: CPN shopping centers . World class standard . Tax benefit . Allow CPN to achieve higher Branded malls to ensure innovative . Capital redeployment to rental rates than others designs and functionality to suit projects with higher return customer needs
10 Key Success Factors
“ Unrivalled Leading Player in the Retail Property Development Industry ”
Business alliances and joint developers, building confidence among prospects and attracting shoppers Central’s Group Synergy
Recurring income from monthly 30-yeared experience in retail High Revenue rent with proven sustainable property development & Experienced & management rental growth Generating Capability at Hands-on Site selection, Sustainable Management merchandizing mix, and Growth Rate retail business know-how’s
Prudent Focus on Retail Financial Property Management Development in and Prime Locations Enhanced funding capability with Solid High quality shopping centers: high occupancy & traffic flow through REIT vehicle. Business Financial Operating and sustainable rental growth growing at a low gearing Flexibility Performance Dynamically Innovative & Step-up rental structure. Diversification Well diversified portfolio in 16 high traffic growth areas
11 Operational Performance Property Locations
Existing Projects: Thailand Shopping Centers: 18 World Format 1 (BMA) Plaza Format 15 (9 - BMA) Equity-owned (CPN) (6 - Province) Center Format 1 (Province) Pure-managed (CPNRF) Festival Format 1 (Province)
Offices: 7 (BMA) Under construction Hotel: 2 (Province)
Bangkok Metropolitan Area (BMA) Pipeline Projects:
Shopping Centers: BMA - Suan Lumpini (Pre-Cadet School) Provinces - Suratthani - Lampang - Ubonratchthani - Hatyai (Songkla) - Chiangmai
Note : As of 31 December 2011. 13 Leasable Area and Occupancy: Bangkok Retail
As of 1Q12, CPN manages 18 premium shopping centers – 10 in Bangkok Metropolitan Area (BMA) and its vicinities and 8 in provincial areas. In 1Q12, occupancy of the BMA shopping centers stood at 98%.
Retail Properties in BMA Leaseable No.of Occupancy Rate (2) CPN Retail Develop- Land area (1) Tenants Properties ment Ownership 1Q12 4Q11 1Q11 (sqm) 1Q12(1) Closure for major renovation 1. Lardprao Greenfield Leasehold 48,404 293 100% 100% n/a during Feb - Aug 11. 2. Ramindra Greenfield Leasehold 17,156 80 100% 98% 100% (3) 3. Pinklao Greenfield Leasehold 35,771 151 100% 98% 99% (3) 4. Rama 3 Greenfield Freehold 18,192 70 100% 100% 100% 5. Bangna Acquisition Freehold 55,254 274 97% 97% 99% Under renovation. 6. Rama 2 (3) Greenfield Leasehold 5,937 34 100% 100% 100%
7. Rattanathibet Acquisition Freehold 77,247 214 99% 99% 97% Underwent a major renovation
8. CentralWorld Acquisition Leasehold 187,046 475 97% 90% 86% during May 10 – Nov 11. 9.Chaengwattana Greenfield Freehold 64,458 386 94% 95% 95% 10.Grand Rama IX Greenfield Leasehold 83,187 225 98% 93% n/a Opened in Dec11. CPN Portfolio in BMA 592,652(4) 2,202 98% 95% 93%
Note 1: Excludes rental agreements < 1 year, such as kiosk, carts, ATMs and coin machines. Note 2: Percentage based on leaseable area. 14 Note 3: Excludes areas transferred to CPNRF.
Leasable Area and Occupancy: Provincial Retail
8 shopping centers are strategically located in high traffic growth areas in provinces. Occupancy rate in 1Q12 averaged 97%.
Retail Properties in Provincial Areas
Leaseable No.of Occupancy Rate (2) CPN Retail Develop- Land area (1) Tenants Properties ment Ownership (1) 1Q12 4Q11 1Q11 (sqm) 1Q12 1. Pattaya Center Greenfield Leasehold 15,226 131 97% 97% 97% 2. Chiangmai Acquisition Freehold 75,919 517 99% 99% 100% 3. Pattaya Festival Greenfield Freehold 57,149 286 95% 98% 93% Underwent a major renovation 4. Udonthani Acquisition Freehold 65,926 248 94% 90% 97% during Jun 11 - Mar 12. 5. Chonburi Greenfield Freehold 40,299 293 97% 97% 96% 6. Khonkaen Greenfield Freehold 50,157 361 96% 96% 86%
Opened in Mar 11. 7. Chiangrai Greenfield Freehold 21,459 116 97% 98% 90% 8. Phitsanulok Greenfield Freehold 24,974 155 100% 100% n/a Opened in Oct 11. CPN Portfolio in Provinces 351,109 2,107 97% 97% 95%
Total CPN Portfolio for Retail Properties 943,761 4,309 97% 95% 94%
Note 1: Excludes rental agreements < 1 year, such as kiosk, carts, ATMs and coin machines. Note 2: Percentage based on leaseable area. 15
Leasable Area and Occupancy: Office
Office property is considered as non-core business, complementing shopping center business and adding value to the overall project. As of 1Q12, CPN owned five office towers located in BMA with an average occupancy rate of 88%.
Leaseable No.of Occupancy Rate (2) Develop- Land Office area (1) Tenants ment Ownership 1Q12 4Q11 1Q11 (sqm) 1Q12 (1) 1. Lardprao Greenfield Leasehold 16,307 69 97% 94% 55% Completed its major renovation in 1Q11. 2. Bangna Acquisition Freehold 10,007 27 91% 92% 98% 3. CentralWorld Acquisition Leasehold 82,796 97 93% 93% 91% 4. Chaengwattana Greenfield Freehold 19,867 46 86% 67% 57% 5. Grand Rama IX Greenfield Leasehold 13,163 23 45% 48% n/a Opened in Dec 11. Total 142,140 262 88% 85% 82%
Note 1: Excludes storage. Note 2: Percentage based on leaseable area. 16 Occupancy: Residential and Hotel
Residential property and hotel are non-core businesses. These businesses complement that of the shopping center and add value to the project.
Residential Leaseable area (1) Occupancy Rate (2) Residential (sqm) 1Q12 4Q11 1Q11 1. Bangna 1,907 43% 43% 42% Strata title. Asset for sales. 2. Langsuan 4,466 66% 56% 70% 50-unit furnished apartment. Total 6,373 60% 52% 62% Hotel
No. of Occupancy Rate % Hotel Available 1Q12 4Q11 1Q11 Room Centara Udonthani 259 68% 33% 84% Closure for refurbishment during Jun 11 – Dec 11. Managed by Central Plaza Hotel Plc. Hilton Pattaya 302 66% 56% 62% Launched in Dec 10. Managed by Hilton Hotel Corporation Total 561 67% 46% 72%
Note 1: Includes retail space. Excludes storage. Note 2: Percentage based on leaseable area. 17
Operation Performance: CPNRF
In 1Q12, CPN Retail Growth Leasehold Property Fund (“CPNRF”) owns three shopping centers and two office towers. CPNRF is managed by SCB Asset Management, Fund Manager. Its properties are managed by CPN, Property Manager.
Leaseable No.of Occupancy Rate (2) CPNRF Retail Develop- Land area (1) Tenants ment Properties Ownership (1) 1Q12 4Q11 1Q11 (sqm) 1Q12
1. Rama 2 Greenfield Leasehold 93,553 327 99% 99% 99%
2. Rama 3 Greenfield Freehold 39,407 243 99% 98% 95%
3. Pinklao Greenfield Leasehold 24,426 115 97% 96% 95%
CPNRF Retail Properties 157,389 685 98% 98% 98%
Leaseable No.of Occupancy Rate (2) CPNRF Office Develop- Land area (1) Tenants ment Properties Ownership (1) 1Q12 4Q11 1Q11 (sqm) 1Q12
Pinklao Tower Greenfield Leasehold 33,378 98 97% 97% 94% A & B
CPNRF Portfolio 191,108 783 98% 98% 97%
Note 1: Includes rental agreements < 1 year such as kiosk, carts, ATMs and coin machines and CPN acts as the property manager. Note 2: Percentage based on leaseable area. 18 Effective Rental Rate (1)
Overall effective rental rate declined in 2009 – 2011 from new malls in Same store rental rate of matured malls
provinces. 1Q12 same store rental rate grew 8.2% y-o-y. (Bt/sm/mth)
1,400 1,283 1,187 1,200 Same Store Rental +8.2% YoY 1,000 (Bt./sqm/mth) 800
1,600 600 1,430 1Q11 1Q12 Excludes CentralWorld , CentralPlaza Lardprao, 1,400 and malls launched during 2008-2011 (2) 1,274 1,254 1,225 1,248 1,251 (2) 1,200 1,157 Same store rental rate of new malls (Bt/sm/mth) 1,400 1,000 1,213 1,200 1,120
800 1,000 2008 2009 2010 2011 1Q11 1Q11 1Q12 Excludes CentralWorld , 800 All projects CentralPlaza Lardprao, and new malls launched in 2011 600 1Q11 1Q12 Excludes malls launched in 2011 (3)
Note 1 : The figures are effective rental rates for retail tenants (occupied space < 1,000 sqm) and net of special rental discounts. Note 2 : Malls which have been operating less than 3 years – CentralPlaza Chaengwattana, CentralFestival Pattaya Beach, CentralPlaza Udonthani, 19 CentralPlaza Chonburi, CentralPlaza Khonkaen, and newly launched malls opened in 2011. Note 3 : CentralPlaza Chiangrai, CentralPlaza Phitsanulok, and CentralPlaza Grand Rama 9. Source: Company estimate as of 31 December 2011. Rental Contract Type
% of Sales Monthly basis collection 24% (up to 3 years) • Tenants: food centers, cineplex and international brands such as “McDonalds”, “KFC” Fixed rent • Range of percentage: 10% - 30% of sales Monthly basis collection 47% (up to 3 years) • With minimum guarantees • Increase rental rate approx 5% p.a. • Approx. 1/3 of rental contract Long-term lease expired every year 29%
Up-front collection (up to 30 years) • Up-front payment – realize throughout lease contract period on straight-line basis
Note: On top of space rental fee, service & utility fees are collected on a monthly basis
Note1: Percentage based on occupied area. Source: Company estimate as of 31 March 2012. 20 Future Developments Secured Future Locations
CentralFestival Chiangmai CentralPlaza Lampang NLA: 46,700 sqm NLA: 16,100 sqm Opening in 4Q 2013 Opening in 4Q 2012
CentralPlaza Ubonratchathani NLA: 25,300 sqm Opening in 1Q 2013
CentralPlaza Suratthani NLA: 25,100 sqm Opening in 4Q 2012
CentralFestival Hatyai NLA: 50,100 sqm Opening in 3Q 2013
Note: As of 31 March 2012. 22 CentralPlaza Suratthani
Project Highlights
Investment Cost (1) 2,000 MB Program Shopping Center (N.L.A.) 25,100 sqm (2) Parking (G.A) 1,400 cars Joint- Developer Robinson Department Store (3) Location 62 rais, Suratthani Province South of Thailand Construction Progress 57% of construction Opening (tentative) 4Q 2012
Note1: Includes land and construction cost of shopping center and parking building. Excludes those of department store. Note2: Excludes CRC’s area (Robinson Department Store). 23 Note3: Area will be developed and owned by the joint developer. However the store will be magnet to draw traffic into CPN’s plaza area. CentralPlaza Lampang
Project Highlights
Investment Cost (1) 1,100 MB Program Shopping Center (N.L.A.) 16,100 sqm (2) Parking (G.A) 800 cars Joint- Developer Robinson Department Store (3) Location 39 rais, Lampang Province North of Thailand Construction Progress 22% of construction Opening (tentative) 4Q 2012
Note1: Includes land and construction cost of shopping center and parking building. Excludes those of department store. Note2: Excludes CRC’s area (Robinson Department Store). 24 Note3: Area will be developed and owned by the joint developer. However the store will be magnet to draw traffic into CPN’s plaza area. CentralPlaza Ubonratchathani
Project Highlights
Investment Cost (1) 1,800 MB Program Shopping Center (N.L.A.) 25,300 sqm (2) Parking (G.A) 1,500 cars Joint- Developer Robinson Department Store (3) Location 76 rais, Ubonratchathani Province Northeast of Thailand Construction Progress 15% of construction Opening (tentative) 1Q 2013
Note1: Includes land and construction cost of shopping center and parking building. Excludes those of department store. Note2: Excludes CRC’s area (Robinson Department Store). 25 Note3: Area will be developed and owned by the joint developer. However the store will be magnet to draw traffic into CPN’s plaza area. CentralFestival Hatyai
Project Highlights
Investment Cost (1) 4,500 MB Program Shopping Center (N.L.A.) 50,100 sqm (2) Multi-purposed Hall 4,800 sqm Parking (G.A) 2,100 cars Joint- Developer Central Department Store (3) Location 50 rais, Hatyai Province South of Thailand Construction Progress Detailed study Opening 3Q 2013
Note1: Includes land and construction cost of shopping center and parking building. Excludes those of Central Department Store. Note2: Excludes CRC’s area (Central Department Store). 26 Note3: Area will be developed and owned by the joint developer. However the store will be magnet to draw traffic into CPN’s plaza area. CentralFestival Chiangmai
Project Highlights
Investment Cost (1) 3,100 MB Program Shopping Center (N.L.A.) 46,700 sqm (2) Parking (G.A) 1,500 cars Joint- Developer Central Department Store (3) Location 68 rais, Chiangmai Province North of Thailand Development Progress Detailed study Opening (tentative) 4Q 2013
Note1: Includes land and construction cost of shopping center and parking building. Excludes those of Central Department Store. Note2: Excludes CRC’s area (Central Department Store). 27 Note3: Area will be developed and owned by the joint developer. However the store will be magnet to draw traffic into CPN’s plaza area. Asset Enhancement Projects CentralPlaza Udonthani and Centara Udonthani
Investment Cost (1) 2,400 MB Program New space Shopping Center New retail space (NLA) of 22,000 sqm New anchors, including TOPS, PowerBuy, and SuperSport New parking building (5 floors with over 700 parking spaces) New Multi-purposed Hall of 4,900 sqm Hotel Face lift with new interior design Location Northeast of Thailand Construction Period 2Q11 - 1Q12 (Completed) Impact • Increased leasable area with more leading brands • Increased traffic flow and rental income
As of 31 December 2011 . Note 1: Includes those of shopping center and office. 29 Future Leaseable Area & Occupancy Rate
Retail NLA (sqm)
1,800,000 100%
1,600,000 Under study projects 1,400,000 80% Under developing 1,200,000 projects Exisitng projects 1,000,000 60% % Occupancy (RHS) 800,000
600,000 40%
2009 2009 2010 2011 2006 2006 2007 2008
2012F 2013F 2014F 2015F
Assets under management 2006 2007 2008 2009 2010 2011 2012F 2013F 2014F 2015F No.of project 10 10 11 15 15 18 20 23 27 30 Retail space (NLA in sqm) 684,587 697,038 761,111 967,430 964,612 1,085,774 1,142,350 1,264,450 1,419,450 1,537,450 Office space (NLA in sqm) 145,700 144,791 144,791 164,253 163,991 175,831 175,831 175,831 175,831 175,831 Hotel (rooms) 255 557 561 561 561 561 561 Residential (units) 62 62 62 62 62 62 62 62 62 62
Source: Company estimate as at 31 March 2012. Includes leaseable area of CentralPlaza Rama 2, CentralPlaza Rama 3, and CentralPlaza Pinklao which were partially transferred to CPNRF, but still 30 under CPN’s management. Capital Expenditure Major capital expenditure will be used to develop new projects. Financing plan for future expansion includes: cash flow from operation, bond issuance and/or project finance, and property fund vehicle.
(Unit: MB) Under-construction Projects 2011 2012 2013 2014 2015 CentralPlaza Chaengwattana 20 0 0 0 0 CentralFestival Pattaya Beach 100 0 0 0 0 Hilton Pattaya Hotel 300 240 0 0 0 CentralPlaza Chonburi 140 0 0 0 0 CentralPlaza Khonkaen 230 220 0 0 0 CentralPlaza Chiangrai 540 90 0 0 0 CentralPlaza Phitsanulok 910 200 0 0 0 CentralPlaza Rama 9 1,570 1,140 340 0 0 CentralPlaza Suratthani 290 750 400 0 0 CentralPlaza Lampang 80 530 330 0 0 CentralPlaza Ubonratchathani 280 400 1,100 150 0 CentralFestival Hatyai 890 1,040 1,300 1,000 0 CentralFestival Chiangmai 100 700 1,620 300 0 Enhancement projects CentralWorld 1,050 500 430 0 0 CentralPlaza Lardprao 1,050 550 0 0 0 CentralPlaza Udonthani – Phase 2 920 950 400 0 0 CentralPlaza Bangna 170 400 600 0 0 Existing projects 1,010 1,000 1,000 1,000 1,000 Potential projects (1) NewRambutan Projects 3,600 2,600 5,800 6,700 5,800 Total CAPEX 13,250 11,310 13,320 9,150 6,800
Source: Company estimate as of 31 March 2012. Note 1: Tentative development projects. 31 1Q12 Financial Performance Financial Summary
6-mth closure of (Bt.mil) 6-mth closure CentralPlaza Lardprao of CentralWorld 15,000 12,766 12,500 11,755 11,388
10,000 9,271 8,282
7,500
5,000 4,163 2,991 3,112 3,119 3,176 2,404 2,442 2,620 2,500 1,408 768 751 1,065 1,569 2,158 2,292 1,552 1,871 612 555 0 2007 2008 2009 2010 2011 1Q11 4Q11 1Q12
Total revenues /1 Operating profit Net profit % YoY Growth 2007 2008 2009 2010 2011 1Q12 QoQ 1Q12 YoY Total revenues /1 (12%) 12% 27% (3%) 12% 31% 33% Operating profit 8% 24% 4% (22%) 7% 87% 83% Net profit 7% 38% 6% (32%) 21% 92% 74%
Same store revenue growth 14% 11% 5% 0% 9% 6% 11%
Excludes non-recurring items. Note1: Total Revenue includes rental & service, hotel operation, food & beverage, and other incomes. 33 Excludes interest income and share of profit from investment. . Revenues Breakdown
(Bt.mil) Retail & office +35% YoY, mainly from:
16,000 • Strong increases in rental rates at most of +34% YoY 12,765 retail properties. 11,388 +17% QoQ 12,000 • Contributions from new projects – CentralPlaza Chiangrai, CentralPlaza 8,000 Phitsanulok, CentralPlaza Grand Rama 9 – 4,162 3,119 3,550 launched in 2011. 4,000 • The re-launch of CentralPlaza Lardprao in
0 August 2011. 2010 2011 1Q11 4Q11 1Q12 • Continuous improvement of CentralWorld. Other income Hotel F&B Office Retail Hotel revenues +32% YoY, due to continuous improvement of Hilton Pattaya Hotel. 1Q12 Revenue breakdown F&B sales +15% YoY from
Office • Higher sales at CentralFestival Pattaya 5% Beach. F&B 4% • Contributions from the new food centers at Retail Hotel 81% 4% the CentralPlaza Chiangrai and CentralPlaza Other income Phitsanulok. 6%
Excludes non-recurring income. Note1: Includes revenues from residential projects and water & amusement park, and property management fees from CPNRF. 34
Costs Breakdown
Cost of retail & office +20% YoY from: (Bt.mil)
10,000 • Costs of the newly launched projects. 7,783 • Higher depreciations of CentralPlaza 8,000 6,925 +19% YoY Lardprao after renovation. +6% QoQ 6,000 • Depreciations of the newly launched 4,000 projects. 1,837 2,065 2,185 2,000
0 Cost of hotel business +15% YoY from the 2010 2011 1Q11 4Q11 1Q12 increased income from hotel operations.
Others Hotel F&B Office Retail F&B costs +11% YoY from 1Q12 Cost breakdown • Higher F&B sales. The change in costs was in-line with that of F&B sales. Office 7% • Costs of the new food centers at the F&B 6% CentralPlaza Chiangrai and CentralPlaza Phitsanulok. Hotel Retail 3% 84% Others 0%
Note1: Excludes non-recurring items. 35 SG&A Expenses Breakdown
(Bt.mil) Personnel expenses +12% YoY from:
3,000 • Increased number of employees to support 2,410 +16% YoY business expansion. 2,500 2,069 +39% QoQ 2,000 With increased number of projects, 1,500 advertising & promotion +1% YoY, thanks to 1,000 778 an efficient cost management thru top-line 520 582 500 driven basis.
0 2010 2011 1Q11 4Q11 1Q12
Others Depreciation Advertising & promotion Personnel
1Q12 SG&A breakdown
Advertising & promotion 16%
Personnel 48% Depreciation 15%
Others 21%
Note1: Excludes non-recurring items. 36 Debt Analysis
Outstanding Borrowings Bt 25,847 mil Fixed vs. Floating Interest Rate Mix
Long-term loan 34% Floating 9%
Short-term bond 18%
Fixed 91% Long-term bond Short-term loan 41% 7%
Financing Cost (Bt.mil)
1,400 5.5% 6% 5.2% 1,200 4.7% 4.4% 4.3% 4.3% 4.3% 4.3% 5% 1,000 874 4% 745 800 688 581 543 3% 600 2% 400 256 252 178 200 1% 0 0% 2007 2008 2009 2010 2011 1Q11 4Q11 1Q12 /1 Interest expenses Weighted average cost of debt (RHS)
Note 1 : Weighted average interest rate was derived from interest expenses including interest capitalization for projects under development. 37 Capital Structure
CPN’s net D/E stood at 1.2 times, against its debt covenant of 1.75 times.
(Bt.mil) (Times) 30,000 1.40 25,245 25,847 25,000 1.20 21,522 1.19 19,085 18,918 1.00 20,000 19,008 20,448 1.12 16,445 16,669 0.92 0.80 15,000 13,639 15,173 12,045 0.84 0.74 0.60 10,000 0.59 0.40 5,000 3,983 3,677 2,541 0.20 1,632 945 1,685 0 - 2007 2008 2009 2010 2011 1Q12
Cash & current investment Interest bearing debts Equity Net D/E
38 Share Price Performance and Dividend
Share overview Dividend policy is 40% of normal net profit.
Par Value (Bt) 1.00 2011 2010 2009 2008 2007 Stock Price (Bt) 46.00 Par Value (Bt) 1.00 1.00 1.00 1.00 1.00 FY12 core EPS (Bt/share) /1 1.50 Dividend (Bt/share) 0.37 0.25 0.58 0.33 0.33 P/E (Times)/1 31.4 Dividend Paid (Bt mil) 806 545 1,264 719 719 EV/EBITDA (Times)/1 16.8 Dividend Payout Ratio 39% 48% 25%/1 33% 40% Market Capitalization (Bt bn.) 100.2 Remarks: Dividend policy is paid annually not less than 40% of net profit (unless there is a Share Capital (mil.shares) 2,178.8 compelling reason against this). Note 1: Dividend payout ratio of 25% in 2009 was derived from 40% of normal net profit and 14% of gain from transferring assets into CPNRF.
Source: Factset as of 30 March 2012. Note 1: Bloomberg’s consensus as of 30 March 2012. 39 Appendix Balance Sheet
Financial position (MB) Dec 2011 Mar 2012 % Change
Current assets Cash and current investments 945 1,685 78% Other current assets 2,348 2,347 (0%) Total current assets 3,292 4,032 22% Non-current assets Investment properties 40,743 41,823 3% Leasehold rights 13,478 13,135 (3%) Property & equipment (PP&E) 2,423 2,471 2% Other non-current assets 4,123 4,156 1% Total Non current assets 60,767 61,585 1% Total assets 64,059 65,617 2% Current liabilities 15,355 14,330 (7%) Non-current liabilites 28,255 29,764 5% Total liabilities 43,611 44,094 1% Total equities 20,448 21,522 5%
41 Income Statement
% YoY % QoQ Consolidated earnings (MB) 1Q11 4Q11 1Q12 Change Change Revenues from rental and service 2,623 3,023 3,577 36% 18% Retail 2,431 2,813 3,347 38% 19% Office 186 204 225 21% 10% Other supportive businesses 5 6 5 0% (17%) Hotel operations 131 128 174 32% 36% Food & beverage sales 142 177 164 15% (7%) Other income 223 410 248 11% (40%) Total revenues 3,119 3,737 4,163 33% 11% Costs of rental and service 1,661 1,862 1,988 20% 7% Retail 1,532 1,719 1,838 20% 7% Office 124 139 145 17% 5% Other supportive businesses 5 4 5 0% 25% Hotel operations 52 51 60 15% 18% Food & beverage sales 123 152 137 11% (10%) Total costs 1,837 2,065 2,186 19% 6% Operating profit 768 914 1,407 83% 54% Net profit 612 692 1,065 74% 54% Net profit excluding non-recurring items 612 505 1,065 74% 111% EPS (Bt) excluding non-recurring items 0.28 0.23 0.49 74% 111%
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