CentralCentral PattanaPattana Plc.Plc. Property Development & Investment
Opportunity Day – 3Q 2007 & 9M 2007
1 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.
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2 Content
Market Update
Business Highlight
Operations
Developments
Financial Highlights
3 Market Update 3Q 2007 Retail Market Overview
Retail in 3Q 2007 Outlook for 2007 – 2008
Retail Industry in 3Q 2007 has been depressed as a result of Even though a gradual sign of economic recovery has a plunge in consumer confidence. Consumer Confidence unveiled, confidence has not yet been restored. This can be Index (CCI) fell to 69.2 in Sep 2007, a further decline from explained by the expected aftermath of the upcoming 69.5 in Aug 2007, reflecting weak domestic growth. election and concerns about the formation of new Retail sales experienced a contraction for three quarters in a government. However, the belief of continual recovery in row since 4Q 2006. domestic demand and investment, and supportive factors to the improvement of economic circumstances persists. This However, retail sales in July and Aug 2007 displayed is based on the assumption that : growth of 4.4%yoy and 2.1%yoy, respectively. It is noted that the improvement of retail sales growth in the last three Election takes place by the end of 2007 and the newly months has been in line with better performance of Private elected government will be in the office by March 2008. Consumption for the past four months. The mega / infrastructure projects has been initially Revenue of retail operators witnessed a single-digit to zero implemented as planned, and payment for Government’s growth after enjoying double-digit growth rates since the public spending and budget deficit is on schedule, which financial crisis. would lead to a more dynamic economy. Luxury goods and high-end products have been affected Core inflation remains in BOT’s target band of 1.0 - 2.0% in the most by low consumer consumption, followed by 2008. retail fashion which has started to slow down. Interest rate is kept at low level in order to stimulate the Meanwhile food & beverage and entertainment sectors are economy and domestic demand. still performing fairly well. Tourism continues to flourish as the Tourism Authority set a Unsettled draft of Retail Business Act has discouraged target growth of 8% yoy. retail growth in 2007. The Draft is to monitor and limit wholesale / retail business expansion in discount store, hypermarket, supermarket, and cash and carry.
Source : Bank of Thailand (BOT) and National Economics and Social Development Board (NESDB) 5 Bangkok Property Market Overview
Retail Property Office Property
Bangkok retail supply in 2Q07 increased by 33,500 sqm or 5.3% Bangkok office supply in 2Q07 increased by 8,300 sqm to 7.47 mil yoy to 4.68 mil sqm. Most of new spaces came in the form of sqm owing to the completion of Pipatanasin Building (Grade B shopping mall, of which supply increased by 9.6% yoy to 2.36 mil in mid-town area). sqm. Average vacancy in 2Q07: Major New supply operational in 2Q07 are: SC Plaza (13,000 sqm) Grade A down from 6.0% in 1Q07 to 5.7% in 2Q07. Home Pro Ramindra (6,000 sqm) Grade B up from 15.0% in 1Q07 to 15.3% in 2Q07. The Mall Tha Pra (expansion - 14,500 sqm) Rental rates increased from 2006 to 2Q07 for both grades: Average vacancy in 2Q07 was 6.0%, up from 5.0% in 1Q07. Grade A up 0.7%. Rental rates have generally been stable due to steady new Grade B up 2.7%. supply and is expected to remain steady in the short-term. New retail supply in 2007 will be approximately 131,000 sqm, New supply of approximately 142,000 sqm are expected to or an increase of 2.9% yoy. come in 2H07 (Grade A:20%, Grade B:80%) or an increase of 1.9% yoy.
6,000 5.4% 6.0% 6.0% 5.1% 5,000 4.7% 4,680 5.0% Office rental rate 4,355 4,575 0.7% 3,972 4,017 4,000 4.0% 700 674 679 3.5% + 2.7% 3,000 3.0% 595 sqm 600 2,000 2.0% 506 488 500 475 431 428 1,000 1.0% 400 365
Bt/sqm 311 0 0.0% 300 2003 2004 2005 2006 2Q07
Retail Supply Vacancy 200
Year 2004 2005 2006 1H07 100
New Supply (sqm) 45,000 338,000 220,000 104,790 0 2003 2004 2005 2006 2Q07 Total Supply (sqm) 4,017,000 4,355,000 4,575,000 4,679,790 Grade A Grade B
Source : CBRE and the Company’s estimate 6 Business Highlight 3Q07 Business Highlights
3Q07 total revenue and EBITDA grew by 12.4% y-o-y and Leading Position in Bangkok Retail Space 8.3% y-o-y to 1,930.7 MB and 988.5 MB, respectively, primarily due to incremental contribution from the newly CPN opened CentralWorld. 23%
The Mall Group
Financial While 3Q07 net profit decreased 4.5% y-o-y to 412.1 MB, 11% reflecting lower margin at CentralWorld and higher marketing and promotion expenses. Future Park Rangsit 8%
Others Average effective retail rental rates increased by 7% y-o-y to 33% Siam Paragon Bt 1,216 per sqm per month, flat q-o-q and up 3.8% y-o-y. 5% Seacon Square MBK 5% Occupancy of retail properties was maintained at 95%. 3% Siam Future Seri Center Fashion Island 5% Occupancy of office space slightly increased to 93%, 3% 4% Operation supported by strong take up rate at new office, Pinklao Tower B (from 65% in 2Q07 to 75% in 3Q07). Shareholder’s Value Creation
Construction of two new projects, CentralPlaza 22.8% Bt mn Chaengwattana and CentralFestival Pattaya Beach, have 70,000 made progression as per schedule. In 3Q07 total sales 60,462 60,000 56.9% progress reached 60% and 80%, respectively, with 49,241 confirmation of all anchors. 50,000 86.7% 40,000 Construction of CentralPlaza Chonburi is under foundation 31,375 works. 30,000
Development 16,802 Construction permit was granted for CentralPlaza Khon Kaen 20,000 new location and CentralPlaza Rama 9. Groundbreaking will 10,000 be initiated in 1Q08 and 3Q08, respectively. 0 31 Dec 2004 31 Dec 2005 29 Dec 2006 28 Sep 2007
8 Developments Projects Under Development
CentralPlaza Chaengwattana CentralFestival Pattaya Beach
Investment Cost (1) : 4,500 – 5,400 MB Investment Cost (1) : 3,500 – 4,200 MB Program : Shopping center (N.L.A) 64,000 sqm (2) Program : Shopping center (N.L.A) 55,000 sqm (2) Office (G.A) 27,000 sqm Hotel (G.A) 40,000 sqm (3) Parking (G.A) 106,000 sqm (3,218 cars) Parking (G.A) 66,000 sqm (1,935 cars) Construction Period: September 2006 – December 2008 Construction Period: January 2007 – February 2009 Progress : 27% of total construction Progress : 10% of total construction Opening : December 2008 Opening : February 2009
Note1: Including land and construction cost of shopping center and parking building. Note2: Excluding Central Group’s area (department store and CRC specialty stores). 10 Note3: Hotel is under consideration to sub-lease. Projects Under Development
CentralPlaza Chonburi CentralPlaza Khon Kean
Investment Cost (1) : 1,500 to 2,000 MB Investment Cost (1) : 1,500 to 2,000 MB Program : Shopping center (N.L.A) – 39,700sqm (2) Program : Shopping center (N.L.A) – 48,700sqm (2) : Parking (G.A) – 52,500sqm (1,500 cars) : Parking (G.A) – 92,716sqm (2,235 cars) Construction Period: 4Q 2007 – 2Q 2009 Construction Period: 1Q 2008 – 3Q 2009 Progress : Construction permit approved Progress : Construction permit approved : Foundation work / designing phase : Designing phase / detailed feasibility study : Detailed feasibility study Opening : August 2009 Opening : April 2009
Note1: Including land and construction cost of shopping center and parking building. Note2: Excluding Central Group’s area (department store and CRC specialty stores). 11 Projects Under Development
CentralPlaza Rama 9
Investment Cost (1) : 4,000 to 4,500 MB
Program : Shopping center/Dept. Store – Under study
: Parking – Under study
Location : Rama 9 Intersection (Ratchdapisek Road & Rama 9 Road)
Construction Period : Tentative 3Q 2008 – 2Q 2011
Progress : Entered into a 30-year land lease agreement with the first right to renew the contract for at least 10 years.
: Construction permit approved / Under detailed feasibility study.
Opening : 2Q 2011 (Tentative)
Note1: Including land and construction cost of shopping center and parking building. 12 Potential Sites
Pre-Cadet School (Suan Lumpini) Location : Rama 4 Road & Wireless Road (Bangkok CBD area) Progress : The Crown Property Bureau announced that CPN was awarded a 30-year lease to develop a 40-rai land plot of the former Pre-Cadet School on Rama IV Rd. CPN will enter into lease agreement after relocation of existing tenants.
Overseas
Rationale : Geographic and income diversifications. : Opportunities to share region’s growth in retail sector through cautious investment. /2 Location : Vietnam
13 Capital Expenditure Profile
Major capital expenditure will be used to develop 8 new projects (8 shopping centers and 1 office) and renovate 6 existing shopping centers. Financing plan for future expansion includes:
Cash flow from operation
Loan – project financing
Property fund (Bt mil) Properties 2007 2008 2009 2010 2011 CentralWorld (Phase 1 & 2) 1,000 640 Chaengwattana 1,450 2,100 790 Pattaya Beach (Festival) 920 1,820 520 Khon Kaen 310 1,120 220 Chonburi 40 710 100 Rama 9 230 430 1,000 2,280 550
Enhancement Projects 300 500 500 500 500
3 New Projects (1) 1,100 1,850 4,050 2,000
Total 4,250 8,420 4,980 6,830 3,050
Source: Company estimates at 30 September 2007. Note1: Tentative development projects 14 Operations Leaseable Area and Occupancy: Retail
Leaseable No.of Occupancy Rate (2) Comments CPN Retail Develop- Land area (1) Tenants Properties ment Ownership 3Q07 2Q07 3Q06 (sqm) 3Q07 (1)
1. Ladprao Greenfield Leasehold 55,553 374 100% 100% 99% Higher occupancy rate after the completion of 2. Ramindra Greenfield Leasehold 18,046 64 92% 90% 65% major renovation in Dec 2006.
3. Pinklao Greenfield Leasehold 55,638 300 92% 92% 96% Undergoing tenants mixed changes.
4. Pattaya Greenfield Leasehold 15,227 142 100% 100% 100%
5. Rama 3 Greenfield Freehold 18,037 70 100% 100% 88%
6. Chiangmai Acquisition Freehold 76,410 533 98% 98% 99%
7. Bangna Acquisition Freehold 57,728 326 99% 99% 100%
8. Rama 2 Greenfield Leasehold 5,937 39 100% 100% 100% Higher occupancy rate after the completion of asset enhancement in Dec 2006 with new 9. Rattanatibet Acquisition Freehold 77,191 206 96% 95% 99% retail space for new retail tenants.
10.CentralWorld Acquisition Leasehold 185,068 382 90% 90% 51% Target occupancy rate at 94% for year end 2007.
Total CPN Portfolio 564,835 2,436 95% 95% 81%
CPNRF Retail Properties (3)
1. Rama 2 Greenfield Leasehold 93,567 318 99% 99% 99% Please see CPNRF.
2. Rama 3 Greenfield Freehold 39,201 277 95% 95% 96% Please see CPNRF.
Total CPNRF Portfolio 132,768 595 98% 98% 98%
Note 1: Excluding rental agreements < 1 year, such as kiosk, carts, ATMs and coin machines. Note 2: Percentage based on leaseable area. 16 Note 3: Rama II and Rama III leaseable areas are under CPNRF including rental agreements < 1 year such as kiosk, carts, ATMs and coin machines 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 3Q07 2Q07 3Q06 (sqm) 3Q07 (1)
1. Ladprao Greenfield Leasehold 18,134 45 96% 97% 100%
2. Pinklao A Greenfield Leasehold 22,560 56 92% 92% 97% Opened in 1Q 2006 after completion its conversion from residential to Grade B 3. Pinklao B Greenfield Leasehold 11,335 33 75% 65% 52% office building. Higher occupancy rate from the opening of new tenants; education, music, 4. Bangna Acquisition Freehold 9,796 27 96% 98% 98% language schools, etc.
5. CentralWorld Acquisition Leasehold 83,686 100 94% 93% 90%
Total 145,511 261 93% 91% 90%
Leaseable area (1) Occupancy Rate (2) Residential (sqm) 3Q07 2Q07 3Q06
1. Bangna 1,907 44% 44% 49% Asset for sales. Completed renovation on phase 1 and 2. Langsuan 4,466 55% 53% 68% undergoing asset enhancement on phase 2.
Total 6,373 52% 50% 62%
Note 1: Including retail space. Excluding storage. Note 2: Percentage based on leaseable area. 17 Contract Types
Types Revenue recognition
71% Fixed Rent 72% • Increase rental rate by Rental income Short term rent 6 - 8% p.a. • realize on monthly basis • Aprox. 1/3 of rental contract (up to 3 years) expires every year Service fee Monthly basis collection 29% • 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% • realize throughout lease contract period on Long term lease • Includes minimum guarantees straight line basis (up to 20 years) Service & Utility fees Up-front- collection • Collect and realize on monthly basis
Note1: Percentage based on leaseable area. Note2: Company estimates as of 30 September 2007. 18 Effective Rental Rate
Average Rental Rates (Retail Space Only)(1)
Average rental rates was 1,216 Bt/sqm/month for 3Q07 and 1,213 Bt/sqm/month for 9M07. Rental rates have steadily increased over the past years with a growth of 12% yoy in 2006 and 7.0% yoy in 9M07. The below figures are effective rental rates (net discount given to selected stores at CentralWorld during its initial stage).
1,250 yoy 7% 1,213 4%yoy 1,200 1,193 1 2%yoy 1,164 1,147 1,150 1,137
1,100 1 0%yoy 1,050 1,040
1,000
950 945 Bt per sqm per month per sqm per Bt 900
850
800
2004 2005 2006 9M06 9M07 9M06 9M07
Excluding CentralWorld Project
Note 1 : Company estimates. Average retail rental rates after discount. 19 People Traffic Flow
Traffic By Properties(1) 200,000 180,000 160,000 3Q2006 2Q2007 3Q2007 140,000 120,000 100,000 80,000 60,000 40,000 person per day (average) day per person 20,000 0 Lardprao Pinklao Bangna Rama 3 Rama 2 CentralWorld Ram Indra Pattaya ChiangMai Rattanathibet ChangeYoY 3Q06/3Q07 29% 6% 8% 30% 5% 162% 9% (13%) 12% 18%
Substantial increase in traffic at CentralWorld due to the newly opened phase and more variety of F&B and shops after completion of its major renovation in Dec 06. Significant increase in traffic at Rama 3 due to completion of overpass in front of the property, and newly opened anchors and education zone. Increase in Ladprao traffic due to the completion of new flyover route in front of the property creating more convenient for traffic flow to the mall.
Decrease at Pattaya upon the changes in collecting parking fees method.
Note 1 : Company estimates. 20 Financial Highlight Consolidated Performance
Bt mil 7,000 6,144 6,000 5,339 5,000
4,000 3,121 3,000 2,618 2,088 2,084 1,908 2,030 1,955 2,000 1,099 1,320 1,263 913 989 1,000 699 680 643 432 435 412 0 3Q06 2Q07 3Q07 9M06 9M07 Total revenue EBITDA Operating profit Net profit
Growth (% Y-o-Y) 2005 Adj* 2006 3Q07 Y-o-Y 9M07 Y-o-Y 3Q07 Q-o-Q Total revenue (1) 11% 7% 9% 15% (0%) EBITDA (2) 10% 8% 8% 19% (10%) Operating profit 10% 8% (8%) (4%) (5%) Net profit 7% 17% (5%) (4%) (5%)
Same store growth (3) 10% 13% 9% 15% (0%)
Note1: Total Revenue = Rental & Service Income + Food & Beverage Income + Other Income Note2: EBITDA is calculated by taking operating income and adding back depreciation and excluding interest income. 22 It also includes long-term lease revenue which is a non-cash item Note3: Same store growth 2006 compare with 2005 excludes revenue from Rama2 & Rama3 Revenue Breakdown
Revenues Comments (3Q06 vs. 3Q07)
Revenue increased by 14% y-o-y. oY Increase came from the openings of CentralWorld and Bt mil %Y Retail 15 7,000 incremental contribution from CentralPlaza Ramindra 6,144 and Rattanathibet after completion of their renovation. 6,000 5,339
Revenue increased by 8% y-o-y. 5,000 Office Increase came from higher occupancy rate and rental Y Yo 4,000 9% rate for new contracts signed at Pinklao Tower B.
3,000 2,088 2,084 1,908 Revenue decreased by 4% y-o-y. 2,000 F&B Decrease came mainly from ceasing of food court 1,000 operation at CentralWorld.
0
3Q06 2Q07 3Q07 9M06 9M07 (1) Revenue decreased by 19% y-o-y. Other Decrease resulted from lower occupancy rate at the two 3Q06 2Q07 3Q07 YoY % 9M06 9M07 Rental residential buildings and ongoing renovation at Retail 1,422 1,613 1,624 14% 4,033 4,768 Langsuan. Office 196 209 212 8% 544 627 F&B 93 99 89 (4%) 304 280 Revenue decreased by 19% y-o-y. Other Other rental 8 7 6 (19%) 28 21 Decrease mainly due to that of last year included non- Income Other income 191 161 154 (19%) 431 448 recurring development fee received from Thai Business Fund 4 for construction of CentralWorld.
Note1: Other Rental includes revenue form Residential and Water & Amusement Park 23 Cost of Rental and Service Breakdown
Cost of Rental and Service Comments (3Q06 vs. 3Q07)
Cost increased by 24% y-o-y. oY Retail Bt mil %Y Increase came from additional depreciation of the 23 4,000 expansion phase of CentralWorld, and new parking and 3,331 additional retail space of CentralPlaza Rattanathibet. 3,500
3,000 2,712 Cost increased by 2% y-o-y. Y 2,500 Yo 18% Office Increase came from higher take-up rate at Pinklao 2,000 Tower B.
1,134 1,500 1,129 958 1,000 Cost decreased 4% y-o-y. 500 F&B Decrease came from the closure of food court at CentralWorld. 0 3Q06 2Q07 3Q07 9M06 9M07
3Q06 2Q07 3Q07 YoY % 9M06 9M07
Retail 737 901 914 24% 2,051 2,668 Office 141 144 143 2% 404 425 F&B 71 75 68 (4%) 233 213 Others 9 9 9 (3%) 24 26
24 Selling and Administration Expenses Breakdown
Selling and Administration Expenses Comments (3Q06 vs. 3Q07)
Expenses increased by 22% y-o-y. Bt mil oY People %Y Increase came from organization restructuring, 33 1,000 934 salary base adjustment, and increase in personnel to support business expansion. 900
800 702 700 Expenses increased by 15% y-o-y. oY Ads & 600 %Y Increase came from marketing activities after the 16 Promo 500 opening of CentralWorld’s expansion phase.
400 335 302 288 300 200
100
0 3Q06 2Q07 3Q07 9M06 9M07
3Q06 2Q07 3Q07 YoY % 9M06 9M07
People 110 128 134 22% 311 389
Ads&Promo 105 88 121 15% 185 308 Depreciation 15 20 15 0% 43 49 Others 57 66 64 12% 162 188
25 Key Ratios
Corporate Performance
Key ratios 3Q06 2Q07 3Q07 YoY Chg QoQ Chg Gross profit margin (%) 44.2% 41.4% 41.2% (3.0%) (0.2%) Operating profit margin (%) 34.1% 31.0% 27.8% (6.3%) (3.2%) EBITDA margin (%) 46.9% 52.1% 46.8% (0.1%) (5.3%) Net profit margin (%) 22.2% 20.6% 19.5% (2.7%) (1.1%) ROA (%) 5.2% 5.0% 4.6% (0.6%) (0.4%) ROE (%) 15.1% 14.1% 13.3% (1.8%) (0.8%)
Business Line Performance
Gross Profit Margin (%) 3Q06 2Q07 3Q07 YoY Chg QoQ Chg Retail 48.2% 44.1% 43.7% (4.4%) (0.4%) Office 28.0% 30.9% 32.4% 4.4% 1.5% F&B 22.8% 24.2% 22.9% 0.1% (1.2%)
26 Capital Structure
Bt mil Net D/E (Times)
14,000 12,555 12,752 13,168 1.0 12,223 12,300 12,000 11,331 0.8 10,000 0.6 8,000 0.6 0.6 0.6 6,000 5,005 0.4 3,962 4,327 4,000 0.2 2,000
0 0.0 3Q06 2Q07 3Q07 Cash and Current Investment Interest Bearing Debt Equity Net Interest Bearing Debt to Equity
“ CPN’s Policy is to Maintain Net Debt to Equity at Lower Than 1.0 ”
Key ratios 3Q06 2Q07 3Q07 YoY Chg QoQ Chg Net interest bearing debt to equity (times) 0.6 0.6 0.6 0.0 0.0 Total debt to equity (times) 1.7 1.8 1.7 0.0 (0.1) Interest coverage (times) 6.2 8.2 5.1 (1.2) (3.1)
27 Debt Analysis
Outstanding Borrowings Bt 12,300 mil Financing Cost
Bt mil 700 ST-Loan 621 Interest Expense 10% 600 543
500 LT-Bond 57% 400 300 184 177 200 154
100 LT-Loan 0 33% 2005 2006 3Q06 2Q07 3Q07 As of 30 September 2007 Weighted Avg. Interest Rate 5.3% 5.6% 5.6% 5.2% 5.3% Fixed vs Floating Mix (1)
Bt m il Fix e d Floa ting 14,000 12,045 11,041 11,112 11,025 12,000 7% 32% 10,000 39% 30% 7,705 8,000 5,384 6,000 29% 93% 68% 32% 4,000 61% 70% 71% 2,000 68% 0 2005 2006 2007FFFF 2008 2009 2010 Fixed Rate 4.8% 5.4% 5.1% 5.0% 4.9% 4.6% Floating rate MLR-0.5% MLR-1.35% MLR-1.39% MLR-1.44% MLR-1.45% MLR-1.59%
Note1: At year end. 28 Share and Dividend Performance
Close Price (Bt) Volume ('000 share) 40 30,000 Share Price Movement 35 25,000 30 20,000 25 1M 3M 12M 20 f 23% 15,000 wth o 07 gro 9M 20 15 10,000 CPN (9.0%) 3.7% 44.5% 10 5,000 SET Index 3.9% 8.4% 23.2% 5 Property Index 2.4% 5.2% 19.3% 0 0
6 6 6 6 6 6 6 6 6 0 0 7 7 7 7 7 7 /0 /0 /0 /0 /0 /0 /0 0 0 /0 /0 /0 /0 /0 /0 1 2 3 5 4 8 9 2 2 2 3 5 6 8 9 /0 /0 /0 /0 /0 /0 /0 1/ 2/ /0 /0 /0 /0 /0 /0 3 5 9 9 7 7 9 1 1 9 6 4 6 8 0 0 1 2 1 0 1 2 3/ 7/ 0 2 1 2 0 2 1 2
Volume ('000 shares) Close Price (Bt)
Source: SETSmart as of 28 September 2007
Share Overview Dividend Summary
2004 2005 2006 Par Value (Bt) 1.00
Stock Price (Bt) 27.75 Par Value (Bt) 1.00 1.00 1.00 EPS – 3Q 2007 (Bt/share) 0.19 Dividend (Bt/share) 0.25 0.40 0.31 (1) P/E (Times) 36.04 Dividend Paid (Bt mil) 545 872 675 P/BV (Times) 4.59 Dividend Payout Ratio 40% 26%* 40% Market Capitalization (Bt mil) 60,462 Notes: Dividend policy is paid annually not less than 40% of net profit. Share Capital (Shares) 2,178,816,000 : Dividend Yield ~ 2.0% - 2.5% in last 3 years. : 40% of profit excluded extra gain (Bt 530 mil) plus 18% of gain from set up CPNRF(Bt 362 mil).
Source: SETSmart as of 28 September 2007. Note1: Earning per share (EPS) based on 2007E EPS of Bt 0.77 per share 29 Appendix Balance Sheet Summary
Unit : Bt mil
Bt million 3Q06 2Q07 3Q07 9M06 9M07 Cash & cash equivalent 3,308 2,178 2,067 3,308 2,067 Current investment 654 2,827 2,260 654 2,260 Other current assets 790 1,145 1,091 790 1,091 Investment in associate 2,232 2,245 2,240 2,232 2,240 Property & equipment, net 25,096 26,443 27,304 25,096 27,304 Other non-current assets 1,245 921 955 1,245 955 Total assets 33,326 35,759 35,917 33,326 35,917 Current portion of long-term debt 2,225 1,234 1,234 2,225 1,234 Other current liabilities 1,889 2,055 1,900 1,889 1,900 Long-term debt 9,107 11,321 11,066 9,107 11,066 Unearned rental / service income 4,847 5,169 5,232 4,847 5,232 Deposits received from customers 2,003 2,272 2,385 2,003 2,385 Other non-current liabilities 1,033 957 932 1,033 932 Total liabilities 21,103 23,007 22,749 21,103 22,749 Issued and Paid-up Share Capital 2,179 2,179 2,179 2,179 2,179 Retained Earnings 7,362 7,903 8,200 7,362 8,200 Total equities 12,223 12,752 13,168 12,223 13,168
31 Income Statement Summary
Unit : Bt mil
Bt million 3Q06 2Q07 3Q07 9M06 9M07 Rental & service income and F & B sales 1,718 1,927 1,931 4,908 5,696 Cost of rental & service and F & B 958 1,129 1,134 2,711 3,331 Gross profit 759 798 796 2,197 2,365 Other income 191 161 154 431 448 Interest income 37 22 29 106 76 Administrative expenses 288 302 335 703 934 Operating profit 699 680 643 2,030 1,955 Share of profit (loss) from investments 72 70 70 213 210 Interest expense 184 154 177 464 495 Income tax expense 162 159 121 474 401 Net loss (gain) of minority interest 8 (2) (4) 15 (6) Net profit 432 435 412 1,320 1,263
EPS (Bt) 0.20 0.20 0.19 0.61 0.58
32 Borrowings: 30 September 2007
TRIS Rating Co., Ltd. has rated the Company’s senior debentures as “A+” in May 2007.
Loan Bt mil Terms
Bill of Exchange & Promissory Note 214 3-mth fixed deposit rate Unsecured Bond (Mar’04) 1,000 5 years, 4.2% Unsecured Bond (Mar’04) 1,500 6.8 years, 5.24% Unsecured Bond (Jun’06) 1,500 3 years, 6.39% Unsecured Bond (Jun’07) 3,000 5 years, 4.25% Property Fund Pinklao (Dec’02) 648 10 years, MLR–0.75%(amortising) Property Fund Pinklao (Dec’02) 216 10 years, 7% (amortising) Property Fund Centralworld (Jun’03) 1,744 10 years, MLR - 1.25% (amortising) Property Fund Centralworld (Jun’03) 1,162 10 years, 6.125% (amortising) Property Fund Bangna (Mar’03) 863 15 years, MLR-1.25% (amortising) Property Fund Bangna (Mar’03) 204 15 years, 6% (amortising) Project Finance - Chiangmai 2B(Dec’02) 249 7 years, 5.75% (amortising) Total(Long Term Borrowings & Current Portion) 12,300 Less Cash (2,067) Net 10,233
33