Bangkok 2001 Invested in Royal Orchid Hotel (Thailand) Plc

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Bangkok 2001 Invested in Royal Orchid Hotel (Thailand) Plc MBK Public Company Limited 2007/2008 Content Corporate Overview History & Development Business Structure Shopping Plaza Hotel & Tourism Golf Real Estate Development Rice Financial Highlights Stoc k Per formance 2 Corporate Overview History & Development 1974 Established the business 1978 Listed on the Stock Exchange of Thailand (SET) 1985 Opened MBK Center Shopping Plaza 1990 Became the major shareholder of Patum Rice Mill and Granary Plc. (PRG) 1996 Opened Pathumwan Princess Hotel, Bangkok 2001 Invested in Royal Orchid Hotel (Thailand) Plc. (Royal Orchid Sheraton Hotel) 2002 Acquired Tinidee Hotel @ Rayong (Formerly known as Royal Princess Ranong Hotel) & the Loch Plam Course, Phuket Invested in Siam Piwat Co., Ltd. 2003 Opened Sheraton Krabi Beach Resort Acquired Plan Estate Co., Ltd. from Thanachart Capital (TCAP) Purchased land in Phuket (East side of the Loch Palm Course) for the development of the new golf course; the Red Mountain Course Purchased 116 rais of land in Samui for future development 2004 Acquired MBK Leisure, a tourist business operation 2006 Purchased land in central Pattaya for future development 4 History & Development 2007 Opened the new golf course; the Red Mountain Course Renew lease agreement on land and property development (location of MBK Center, MBK Tower and Patumwan Princess Hotel) with Chulalongkorn University Set up a broker of new & old cars, motorcycles and manchines company; Apple Auto Auction (Thailand) 2008 Established 2 new real estate development companies; MBK Square Co., Ltd. & MBK Arkhet Co., Ltd. 5 Business Structure As of 30 JUNE 2008 Other Shopping Plaza Hotel & Tourism Golf RlEttReal Estate Rice Development Business The Loch Palm Mahboonkrong MBK Center Pathumwan Plan Properties PiPrincess Ho te l Course Rice (69.88%) (74.52%) Siam Piwat Sheraton Krabi The Red Plan Estate (30.72%) Beach Resort Mountain Course (69.88%) (69.88%) Baan Suan Siam Center Tinidee Hotel Rim Had @ Ranong* Cha-am BSBann Suan Royal Orchid Siam Discovery Loch Palm Sheraton Phuket (29.77%) Siam Tower Crystal Lake Absolute Travel (69.88%) Siam Paragon MBK Leisure (JV 50%) (49.00%) * Formerly known as Royal Princess Ranong Hotel 6 Shareholder Structure Major Shareholder % Patum Rice Mill and Granary Plc. 25.14 Thanac har t Group 20. 76 RBC Dexia Investor Services Trust 4.93 Thai NVDR Company Limited 2.85 Mr. Yongsak Kanathanavanich 2.35 Information as at April 17, 2008 7 Shopping Plaza Industry Overview: Retail 6 new retail centers (5 community malls and a superstore) with 59,733 sq.m. opened in Bangkok in 1Q08 resulted in the total supply of 4.79 million sq.m., an increase of 0.8% q-o-q and 3.1% y-o-y Shopping malls, department stores and superstores accounted for 51.3%, 26.3% and 22.3% of the total supply, respectively. Overall occupancy rate in 1Q08 was 93.9%, a slight drop from 94.6%in% in 4Q07 with a declining occupancy rate in downtown and midtown areas but a rising occupancy rate in suburban areas. Average rents remained relatively stable in 1Q08. New supply of 62,300 sq.m. is expected in 2Q08 riiising thttlthe total supp ly to 4.85 million sq.m. with additional 248,721 sq.m. by the end of 2008 rising the total supply to 5.10 million sq.m. Another 61,723 sqqpy.m. is expected by 2009 and 266,200 sq.m. in 2010. Source: CB Richard Ellis 9 Industry Overview: Office In 1Q08, total office space in Bangkok increased by 0.2%q% q-o-q and 1.4%y% y-o-ytoy to 7.56 million sq.m. Total net take-up in1Q08 grew by 35% q-o-q and 61.5% y-o-y to 48,991 sq.m. Occupancy rate in 1Q08 rose slightly to 88.1% with rising occupancy rate in both CBD and non-CBD. Demand for CBD Grade A office remained strong with occupancy rate of 92.3%. Grade A office rent rose by 0.9% q-o-q and 1.8% y-o-y to 672 Baht per sq.m. Grade B office rent rose by 0.5% q-o-q and 4.8% y-o-y to 506 Baht per sq.m. New office space of 226,000 sq.m. is expected to be completed in 2008 and another 241,300 sq.m. is expected to be completed in 2009. Source: CB Richard Ellis 10 MBK Center Total Area: 270,802.75 sq.m. Rental Space: Shopp ing C en ter 142,762.86 sq.m. Office 23,330.07 sq.m. Average occupancy rate of 97-99% with long term lease (more than 3 years) accounting for 15% of the tenant Average rental rate of 1,383 Baht/sq.m./month Average traffic of 90,000 visitors ppyer day durin g weekda ys and 110,000 visitors per day during weekend with foreign visitors accounting for 23% of total visitors Target to increase foreign visitor ratio to 30% within 3 years Average spending per customer: Thai 1,600 Baht Foreign 3,000-5,000 Baht Renewed contract with Chulalongkorn University for another 20 years starting from 2013 until 2033 Invest 450 MB in renovating Patumwan Princess Hotel room 11 Retail Business Expansion : Rama 9 Land Bank 14 rais of land on Rama 9 from Premier Shopping Complex Plan to developpqyg a boutique style neighborhood or community mall on 10 rais of land Target Clients: B+ consumers Plan to develop a residential project on 4 rais of land Currently in the process of developing a master plan Expect to start the construction of the retail project by the end of the year and compltlete by the end of next year ( 2009). Source: Krung Thai Bank Research 12 Siam Piwat Siam Center Shopping Plaza RtlRental space: 19,000 sq.m. Siam Discovery Shopping Plaza Rental space: 25,000 sq.m. Siam Tower Office Building Rental space: 31,500 sq.m. Siam Car Park Parking lot Parking space: 2,000 cars Note: Siam Piwat is an Associated Company of MBK 13 Siam Paragon Joint venture between Siam Piwat and The Mall Group (50:50) Space: Retail Shop 54,000 sq.m. Department Store 75,000 sq.m. Paragon Cineplex 18,000 sq.m. Edutainment & Healthy 11,000 sq.m. Aquarium 10,000 sq. m. Paragon Hall 8,500 sq.m. Note: Siam Piwat is an Associated Company of MBK 14 Hotel & Tourism Industry Overview: Thailand Tourist Arrival International tourist arrival: 90 83.23 79.53 81.49 The number of international tourist arrivals in 80 74.80 69.36 1Q08 were 4.18 million, an increase of 70 13.6% y-o-y. 60 50 The number of international tourist arrivals at 40 Suvanabhumi Airport during 1H08 were 5.62 Million people 30 million, an increase of 14.4%y% y-o-y. 20 13.82 14.46 10.00 11.65 11.52 TAT targets international tourist arrivals of 10 15.48 million in 2008 and 16.00 million in 0 2003 2004 2005 2006 2007 2009. International tourists Thai tourists Domestic tourism by Thai tourist Avg per Capita Spending & Length of stay In 2009, TAT targets 87 million Thai tourists. 4,500 10 4,058 4,048 4,121 In 2008, TAT targets tourism revenue of 600 3,890 4, 000 3, 775 9199.19 8.62 8 billion ba ht w it h domest ic tour ist contr ibut ing 385 8.19 8.13 8.20 3,500 billion baht. 6 3,000 In 2009, TAT targets tourism revenue of 630 2,500 Days ht per Day ht per 4 aa billion bath with domestic tourist contributing 407 B 1,824 1,852 2,000 1,769 1,795 1,767 billion baht. TAT forecasts spending of 39,375 2.61 2.60 2.73 2.65 2.63 2 1,500 Baht per person per trip. 1,000 0 TAT continues to promote Thailand as an 2003 2004 2005 2006 2007 Avg spending - International Avg spending - Thai alterna tive des tina tion to Singapore an d Hong Avg length of stay - International Avg length of stay -Thai Kong in the MICE market. Source: Tourism Authority of Thailand, Bank of Thailand, CB Richard Ellis 16 Industry Overview: Bangkok Tourist Arrival Avg per Capita Spending & Length of stay 30 4,500 3.76 4 24.33 25 23.80 3,987 4,038 3.66 22.57 3.73 3.533.56 4,000 3,765 21.09 3.46 3.44 2.89 3,791 3,742 2942.94 19. 52 3.26 3 20 3,500 3,212 3,248 2,954 2,924 2,867 15 3,000 11.70 12.27 12.37 11.63 2 9.78 2,500 Days Baht/Day Million people 10 2,000 1 5 1,500 0 1,000 0 2003 2004 2005 2006 2007 2003 2004 2005 2006 2007 International tourists Thai tourists Avg spending - International Avg spending - Thai Avg length of stay - International Avg length of stay -Thai In 1Q08, there were 76 hotels with the total of 24,080 rooms in downtown area, which estimated to accounted for 40% of total supply in Bangkok The supply consisted of 14.7% luxury rooms, 20.4% first-class rooms, 51.2% mid-range and 13.7% economy. Majority of hotels in downtown area located in Ploenchit/Sukhumvit (58.6%), Silom/Sathorn (23.1%) and Riverside (18.2%) area. Over 7,000 htlhotel rooms or approx ima tltely 30%f% of current supply are expected by the end of 2010. Source: Tourism Authority of Thailand, CB Richard Ellis 17 Industry Overview: Bangkok Number of Room & Avg Occupancy Rate 70,000 80% 60,924 58,804 60,593 58,718 70% 60, 000 54,904 69.71% 67.63% 67.96% 60% 50,000 63.14% 56.45% 50% 40,000 40% ooms RR 30, 000 30% 20,000 20% 10,000 10% 0 0% 2003 2004 2005 2006 2007 Number of Room Avg Occupancy Rate Average occupancy rate of upscale (first-class & luxury) hotels in Bangkok was 76% in 1Q08, an increase of 1% q-o-q and 2% y-o-y.
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