Central Pattana Plc. Property Development and Investment Corporate Presentation: ti 4Q11 & FY11 Performance Review CentralWorld, Bangkok
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 h 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 p 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. 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 p 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 2.6 bn (1). CPN is the property p manager and largest shareholder (28%) in Thailand s largest REIT - CPN Retail Growth Leasehold Property Fund (CPNRF) with a market capitalization of approx. USD 663 mil (1). Source: SetSmart as of 30 December 2011. 5
Strong Development & Acquisition Pipelines Green- -field Develo opment 1980 Established under CentralPlaza Co., Ltd. 2002 1982 Opened CentralPlaza Ladproa The first integrated shopping complex in Thailand 1995 Opened CentralPlaza Pinklao AND Central Center Pattaya 1993 Opened CentralPlaza Ramindra Opened CentralPlaza Rama 2 1997 Opened CentralPlaza Ratchada Rama 3 2008 Opened CentralPlaza Chaengwattana 2009 Opened CentralFestival Pattaya Beach, CentralPlaza Chonburi AND CentralPlaza Khon Kaen 2010 Opened Hilton Pattaya Beach Hotel 2011 Opened CentralPlaza Chiangrai and CentralPlaza Phitsanulok, and CentralPlaza Rama 9 2012 (NEW) Open CentralPlaza Suratthani and CentralPlaza Lampang 2013 (NEW) Open CentralFestival Hatyai and CentralFestival Chiangmai and CentralPlaza Ubonratchathani Acquisition & Redevelo opment CPN current portfolio: 18 Shopping Centers 7 Office Towers 1996 Acquired full equity stake in CentralPlaza Chiangmai Airport 2000 2002 Completed CentralPlaza Chiangmai Airport Phase 2A Acquired CentralWorld 2006 (Formerly World Completed CentralWorld 2001 Trade Center) Acquired full equity stake in 2004 Completed CentralPlaza Bangna The Offices at CentralWorld 2003 Acquired CentralPlaza Rattanathibet (Formerly Siam Jusco Rattanathibet) AND completed CentralPlaza Chiangmai Airport Phase 2B 2012 (Enhancement) Complete CentralPlaza Udonthani Phase 2 2009 Acquired CentralPlaza Udon Thani (formerly Charoensri Complex) 5 Projects Under Development Source: Company data and company estimates as of 31 December 2011.. 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 45% The Mall Group 9% Future Park Rangsit 4% Siam Paragon 4% Fashion Island Seacon Square 3% Siam Sa 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 22% Chirathivat Family 32% Central Group totaling 59% Others (Free float) 41% Foreign funds 65% Individuals 13% Central Group 27% Source : Company estimate as of 15 September 2011. 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 manager of shopping centers and mix-used complex Owner of retail chains including Central Department Stores, Robinson Department Stores, ZEN Department Store, la Rinascente Department Stores, Power Buy, Super Sports, B2S, homeworks, Tops Supermarket, Office Depot, etc. Owner of Centara hotel, resorts, and convention centers, and also franchisees of fast-food retail chains including KFC, Mister Donut, Auntie's Anne, Pepper Lunch, beard papa s, Cold Stone, Chabuton, Ootoya, Yoshinoya Owner of international retail franchisees for; - Cosmetics : Clarins, Elizabeth Aden, Payot... - Apparel : MNG, G2000, U2, TOPSHOP, Dorothy Perkins, agnès b, Hush Puppies, Wrangler, Lee, FCUK, Energy, Miss Sixty... - Others : Samsonite, Pentax, 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 t business platform to expand further throughout h t Thailand, maintaining i i 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 Largest and most popular retail chains in Thailand Guarantee space take-up with successful brands and store concepts Increase people traffic Most successful and most experienced retail company in Thailand Attract tenants to locate in CPN shopping centers Allow CPN to achieve higher rental rates than others CPN Leading retail developer, property manager and investor in Thailand with market share of 22% of Bangkok s mall saleable area Integrated development, leasing and property management teams have ensured continuous success for over 30 years Strategic location Optimal tenant mix World class standard Branded malls to ensure innovative designs and functionality to suit customer needs CPNRF Property Fund Largest property fund in Thailand Provide optimal funding source: Unlock CPN s asset value Free up capital for business expansion Lower leverage and avoid dilution Create fee base income Improve CPN s financial position: Tax benefit Capital redeployment to projects with higher return 10
Key Success Factors Unrivalled Leading Player in the Retail Property Development Industry Recurring income from monthly rent with proven sustainable rental growth High Revenue Generating Capability at Sustainable Growth Rate Central s Group Synergy Business alliances and joint developers, building confidence among prospects and attracting shoppers Experienced & Hands-on Management 30-yeared experience in retail property development & management Site selection, merchandizing mix, and retail business know-how s Enhanced funding capability through REIT vehicle. Business growing at a low gearing Prudent Financial Management and Financial Flexibility Step-up rental structure. Well diversified portfolio in 16 high traffic growth areas Dynamically Innovative & Diversification Focus on Retail Property Development in Prime Locations with Solid Operating Performance High quality shopping centers: high occupancy & traffic flow and sustainable rental growth 11
Operational Performance
Property Locations Existing Projects: Shopping Centers: 18 World Format 1 (BMA) Plaza Format 15 (9 - BMA) (6 - Province) Center Format 1 (Province) Festival Format 1 (Province) Offices: 7 (BMA) Hotel: 2 (Province) Thailand Equity-owned (CPN) Pure-managed (CPNRF) Under construction Pipeline Projects: Shopping Centers: BMA - Suan Lumpini (Pre-Cadet School) Provinces - Suratthani - Lampang - Ubonratchthani - Hatyai (Songkla) - Chiangmai Bangkok Metropolitan Area (BMA) Note : As of 31 December 2011. 13
Leasable Area and Occupancy: Bangkok Retail As of 4Q11, CPN manages 18 premium shopping centers 10 in Bangkok Metropolitan Area (BMA) and its vicinities and 8 in provincial areas. In 4Q11, occupancy of the BMA shopping centers stood at 95%. Retail Properties in BMA CPN Retail Develop- Land Properties ment Ownership Leaseable No.of area (1) Tenants Occupancy Rate (2) (sqm) 4Q11 (1) 4Q11 3Q11 4Q10 1. Lardprao Greenfield Leasehold 47,850 295 100% 97% 97% 2. Ramindra Greenfield Leasehold 17,156 80 98% 98% 100% Closure for major renovation during Feb - Aug 2011. 3. Pinklao (3) Greenfield Leasehold 35,705 144 98% 99% 99% 4. Rama 3 (3) Greenfield Freehold 18,394 69 100% 100% 100% 5. Bangna Acquisition Freehold 53,297 277 97% 95% 99% Under renovation. 6. Rama 2 (3) Greenfield Leasehold 5,937 34 100% 100% 100% 7. Rattanathibet Acquisition Freehold 77,281 215 99% 98% 99% 8. CentralWorld Acquisition Leasehold 187,046 495 90% 88% 86% 9.Chaengwattana Greenfield Freehold 65,550 395 95% 96% 96% 10.Grand Rama IX Greenfield Leasehold 84,697 184 93% n/a n/a Under major renovation. Full opening is expected in Jan 12. Opened in Dec11. CPN Portfolio in BMA 592,913 (4) 2,188 95% 94% 94% Note 1: Excludes rental agreements < 1 year, such as kiosk, carts, ATMs and coin machines. Note 2: Percentage based on leaseable area. Note 3: Excludes areas transferred to CPNRF. Note 4: Includes Zen Department Store and under-renovating areas at CentralWorld. 14
Leasable Area and Occupancy: Provincial Retail 8 shopping centers are strategically located in high traffic growth areas in provinces. Occupancy rate in 4Q11 averaged 97%. Retail Properties in Provincial Areas CPN Retail Develop- Land Properties ment Ownership Leaseable area (1) No.of Tenants Occupancy Rate (2) (sqm) 4Q11 (1) 4Q11 3Q11 4Q10 1. Pattaya Center Greenfield Leasehold 15,226 132 97% 93% 97% 2. Chiangmai Acquisition Freehold 75,918 518 99% 99% 100% 3. Pattaya Festival Greenfield Freehold 57,150 313 98% 97% 95% 4. Udonthani Acquisition Freehold 43,988 82 90% 91% 98% Under renovation. 5. Chonburi Greenfield Freehold 40,294 301 97% 96% 95% 6. Khonkaen Greenfield Freehold 50,156 363 96% 93% 87% 7. Chiangrai Greenfield Freehold 23,515 116 98% 98% n/a Opened in Mar 11. 8. Phitsanulok Greenfield Freehold 27,418 154 100% n/a n/a Opened in Oct 11. CPN Portfolio in Provinces 333,665 1,979 97% 96% 96% Total CPN Portfolio for Retail Properties 926,578 (3) 4,167 95% 95% 94% Note 1: Excludes rental agreements < 1 year, such as kiosk, carts, ATMs and coin machines. Note 2: Percentage based on leaseable area. Note 3: Includes Zen Department Store and under-renovating areas at CentralWorld. 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 4Q11, CPN owned four office towers located in BMA with an average occupancy rate of 85%. Office Develop- ment Land Ownership Leaseable area (1) No.of Tenants Occupancy Rate (2) (sqm) 4Q11 (1) 4Q11 3Q11 4Q10 1. Lardprao Greenfield Leasehold 16,397 66 94% 82% 16% Completed its major renovation in 1Q11. 2. Bangna Acquisition Freehold 10,007 27 92% 94% 99% 3. CentralWorld Acquisition Leasehold 82,796 99 93% 93% 93% 4. Chaengwattana Greenfield Freehold 19,708 45 67% 64% 56% 5. Grand Rama IX Greenfield Leasehold 13,163 184 48% n/a n/a Opened in Dec 11. Total 142,071 421 85% 87% 77% 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 Residential Leaseable area (1) Occupancy Rate (2) (sqm) 4Q11 3Q11 4Q10 1. Bangna 1,907 43% 49% 55% Strata title. Asset for sales. 2. Langsuan 4,466 56% 64% 72% 50-unit furnished apartment. Total 6,373 52% 60% 67% Hotel No. of Occupancy Rate % Hotel Available Room 4Q11 3Q11 4Q10 Centara Udonthani 259 33% n/a 63% Closure for refurbishment during Jun 11 Dec 12. Managed by Central Plaza Hotel Plc. Hilton Pattaya 302 56% 59% 40% Launched in Dec 11. Managed by Hilton Hotel Corporation Total 561 46% 59% 51% Note 1: Includes retail space. Excludes storage. Note 2: Percentage based on leaseable area. 17
Operation Performance: CPNRF In 4Q11, 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. CPNRF Retail Properties Development Land Ownership Leaseable area (1) (sqm) No.of Tenants 4Q11 (1) Occupancy Rate (2) 4Q11 3Q11 4Q10 1. Rama 2 Greenfield Leasehold 94,392 318 99% 100% 99% 2. Rama 3 Greenfield Freehold 39,739 232 98% 96% 96% 3. Pinklao Greenfield Leasehold 24,393 119 96% 94% 95% CPNRF Retail Properties 158,524 669 98% 98% 98% CPNRF Office Develop- Land Properties ment Ownership Leaseable No.of Occupancy Rate (2) area (1) (sqm) Tenants (1) 4Q11 4Q11 3Q11 4Q10 Pinklao Tower A & B Greenfield Leasehold 33,760 103 97% 97% 97% CPNRF Portfolio 192,956 772 98% 97% 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 provinces. 4Q11 same store rental rate grew 9.4% y o y. Same store rental rate of matured malls (Bt/sm/mth) 1,600 1,481 Same Store Rental +9.4% YoY 1,400 1,200 1,325 (Bt./sqm/mth) 1,400 1,220 1200 1,200 1,274 1,254 1,225 1,248 1,214 1,329 1,000 800 4Q10 4Q11 Excludes CentralWorld and malls launched during 2008-2011 (2) 1,000 800 600 2007 2008 2009 2010 2011 4Q10 4Q11 All projects Excludes CentralWorld and new malls launched in 2011 Same store rental rate of new malls (2) (Bt/sm/mth) 1,200 1,098 1,100 1,047 1,000 900 4Q10 4Q11 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, 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. 19
Rental Contract Type Monthly basis collection (up to 3 years) Increase rental rate approx 5% p.a. Approx. 1/3 of rental contract expired every year Fixed rent 51% % of Sales 24% Long term lease 25% Monthly basis collection (up to 3 years) Tenants: food centers, cineplex and international brands such as McDonalds, KFC Range of percentage: 10% 30% of sales With minimum guarantees Up front collection (up to 20 years) Up front payment realize throughout lease contract period on straight linebasis Note: On top of space rental fee, service & utility fees are collected on a monthly basis Note1: Percentage based on occupied area. Excludes closed space at CentralWorld. Source: Company estimate as of 31 December 2011. 20
Future Developments
Secured Future Locations CentralPlaza Lampang NLA: 16,100 sqm Opening in 4Q 2012 CentralFestival Chiangmai NLA: 46,700 sqm Opening in 4Q 2013 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 December 2011. 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 Construction Progress 62 rais, Suratthani Province South of Thailand 24% 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). 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. 23
CentralPlaza Lampang Project Highlights Investment Cost (1) Program 1,100 MB Shopping Center (N.L.A.) 16,100 sqm (2) Parking (G.A) 800 cars Joint- Developer Robinson Department Store (3) Location Construction Progress 39 rais, Lampang Province North of Thailand 20% 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). 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. 24
CentralPlaza Ubonratchathani Project Highlights Investment Cost (1) Program 1,800 MB 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 Detailed ed study 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). 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. 25
CentralFestival Chiangmai Project Highlights Investment Cost (1) Program 3,100 MB Shopping Center (N.L.A.) 46,700 sqm (2) Parking (G.A) 1,500 cars Joint- Developer Central Department Store (3) Location Development Progress 68 rais, Chiangmai Province North of Thailand 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). 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. 26
CentralFestival Hatyai Project Highlights Investment Cost (1) Program 4,500 MB Shopping Center (N.L.A.) 50,100 sqm (2) Multi-purposed Hall Parking (G.A) 4,800 sqm 2,100 cars Joint- Developer Central Department Store (3) Location Construction Progress 50 rais, Hatyai Province South of Thailand 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). 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. 27
Asset Enhancement Projects
CentralPlaza Udonthani and Centara Udonthani Investment Cost (1) Program Shopping Center Hotel Location Construction Period 2,400 MB New retail space (NLA) of 27,530 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 Face lift with new interior design Northeast of Thailand 2Q11 1Q12 New space 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 1,400,000 000 1,200,000 1,000,000 800,000 80% 60% Under study projects Under developing projects Exisitng projects % Occupancy (RHS) 600,000 40% 20 006 20 007 20 008 20 009 20 010 20 011 201 12F 201 13F 201 14F 201 15F 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 1,144,674 1,266,774 1,421,774 1,539,774 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 December 2011. Includes leaseable area of CentralPlaza Rama 2, CentralPlaza Rama 3, and CentralPlaza Pinklao which were partially transferred to CPNRF, but still under CPN s management. 30
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 40 0 0 0 CentralFestival Pattaya Beach 100 0 0 0 Hilton Pattaya Hotel 300 240 0 0 0 CentralPlaza Chonburi 140 40 0 0 0 CentralPlaza Khonkaen 230 170 0 0 0 CentralPlaza Chiangrai 540 30 0 0 0 CentralPlaza Phitsanulok 910 200 90 0 0 CentralPlaza Rama 9 1,570 1,030 700 0 0 CentralPlaza Suratthani 290 900 470 0 0 CentralPlaza Lampang 80 530 330 0 0 CentralPlaza Ubonratchathani 280 490 500 200 0 CentralFestival Hatyai 890 1,040 1,000 650 0 CentralFestival Chiangmai 100 710 1,000 900 0 Enhancement projects CentralWorld 1,050 580 0 0 0 CentralPlaza Lardprao 1,050 550 0 0 0 CentralPlaza Udonthani Phase 2 920 950 400 0 0 CentralPlaza Bangna 170 830 0 0 0 Existing projects 1,010 1,000 1,000 1,000 1,000 Potential projects New Projects (1) 3,600 1,900 5,900 6,700 5,800 Total CAPEX 13,250 11,230 11,390 9,450 6,800 Source: Company estimate as of 31 December 2011. Note 1: Tentative development projects. 31
4Q11 & FY2011 Financial Performance
Financial Summary (Bt.mil) 15,000 6-mth closure of CentralWorld 6-mth closure of CentralPlaza Lardprao 12,500 11,755 11,388 12,766 10,000 7,500 8,282 9,271 5,000 2,500 0 2,404 2,991 3,112 2,442 2,620 3176 3,176 3158 3,158 3550 3,550 747 619 728 1,569 2,158 2,292 1,552 1,871 553 389 505 2007 2008 2009 2010 2011 4Q10 3Q11 4Q11 /1 Total revenues Operating profit Net profit % YoY Growth 2007 2008 2009 2010 2011 4Q11 QoQ 4Q11 YoY Total revenues /1 (12%) 12% 27% (3%) 12% 12% 12% Operating profit 8% 24% 4% (22%) 7% 18% (3%) Net profit 7% 38% 6% (32%) 21% 30% (9%) Same store revenue growth 14% 11% 5% 0% 9% 6% 9% Excludes non-recurring items. Note1: Total Revenue includes rental & service, hotel operation, food & beverage, and other incomes. Excludes interest income and share of profit from investment.. 33
Revenues Breakdown (Bt.mil) 16,000 12,000 8,000 4,000 0 11,388 12,765 +16% YoY +12% QoQ 3,176 3,158 3,550 2010 2011 4Q10 3Q11 4Q11 Other income Hotel F&B Office Retail Retail 79% 2011 Revenue breakdown Office 6% F&B 5% Hotel 4% Other income 6% Retail & office +13% YoY, mainly from: Strong increases in rental rates at most of retail tilproperties. Contributions from new projects CentralPlaza Chiangrai, CentralPlaza Phitsanulok, CentralPlaza Grand Rama 9 launching in 2011. Lower contributions from CentralWorld during major renovation in 4Q10. Hotel revenues +142% YoY, due to a fullquarter contribution from Hilton Pattaya Hotel launched in December 2010. F&B sales +27% YoY from Higher sales at CentralFestival Pattaya Beach. Contributions from the new food centers at the CentralPlaza Chiangrai and CentralPlaza Phitsanulok. Excludes non-recurring income. Note1: Includes revenues from residential projects and water & amusement park, and property management fees from CPNRF. 34
Costs Breakdown (Bt.mil) 10,000 7,783 8,000 6,925 +16% YoY +4% QoQ 6,000 4,000 1,780 1,988 2,065 2,000 Cost of retail & office +14% YoY from: Costs of the newly launched projects. Higher depreciations of CentralPlaza Lardprao after renovation. Depreciations of the renovated areas at CentralWorld re launching in December 2010. 0 2010 2011 4Q10 3Q11 4Q11 Others Hotel F&B Office Retail Cost of hotel business +111% YoY from the newly launched Hilton Pattaya Hotel. Retail 84% 2011 Cost breakdown Office 7% F&B 7% Hotel 2% Others 0% F&B costs +16% YoY from Higher F&B sales. The change in costs was in line with that of F&B sales. Costs of the new food centers at the CentralPlaza Chiangrai and CentralPlaza Phitsanulok. Note1: Excludes non-recurring items. 35
SG&A Expenses Breakdown (Bt.mil) 3,000 2,500 2,000 1,500 1,000 500 0 2410 2,410 +16% YoY 2,069 +39% QoQ 671 558 778 2010 2011 4Q10 3Q11 4Q11 Others Depreciation Advertising & promotion Personnel Personnel expenses +70% YoY from: Increased number of employees to support business expansion. Advertising & promotion 10% YoY, due to an improved market sentiment and an efficient cost management to top line driven basis. Depreciations +121% YoY from Full quarter depreciations of the new Hilton Pattaya Hotel. 2011 SG&A breakdown Advertising & promotion 20% Personnel 45% Depreciation 14% Others 21% Note1: Excludes non-recurring items. 36
Debt Analysis Outstanding Borrowings Bt 25,245 mil Fixed vs. Floating Interest Rate Mix Long term loan 32% Short term bond 18% Floating 9% Long term bond 40% Short term loan 10% Fixed 91% Financing Cost (Bt.mil) 1,400 1,200 1,000 800 600 400 200 0 5.5% 5.2% 581 543 4.7% 745 4.4% 43% 4.3% 43% 4.3% 43% 4.3% 42% 43% 5% 4.2% 4.3% 688 874 178 205 235 256 2007 2008 2009 2010 2011 1Q11 2Q11 3Q11 4Q11 Interest expenses Weighted average cost of debt (RHS) /1 6% 4% 3% 2% 1% 0% 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 25,000 20,000 15,000 10,000 5,000 0 25,361 25,245 21,223 1.24 1.19 19,085 19,849 19,008 18,918 19,346 20,448 19,749 19,527 16,445 1.04 16,669 092 0.92 13,639 0.97 15,173 12,045 0.84 0.74 0.59 3,983 3,677 2541 2,541 1,632 873 1,032 879 945 2007 2008 2009 2010 1Q11 2Q11 3Q11 4Q11 Cash & current investment Interest bearing debts Equity Net D/E 1.40 1.20 1.00 080 0.80 0.60 0.40 020 0.20 38
Share Price Performance and Dividend Baht/share Volume (RHS) CPN Price (LHS) 50 40 30 20 10 0 Share overview Jan 06 Jul 06 Jan 07 Jul 07 Jan 08 Jul 08 Jan 09 Jul 09 Jan 10 Jul 10 Jan 11 Jul 11 Jan 12 Dividend policy is 40% of normal net profit. Par Value (Bt) 1.00 2011 2010 2009 2008 2007 Stock Price (Bt) FY11 core EPS (Bt/share) P/E (Times) P/BV (Times) Market Capitalization (Bt mil) Share Capital (mil.shares) 37.75 0.94 40.2 41 4.1 83,340 2,179 Par Value (Bt) Dividend (Bt/share) Dividend Paid (Bt mil) 1.00 0.37 806 1.00 0.25 545 1.00 0.58 1,264 1.00 0.33 719 1.00 0.33 719 Dividend Payout Ratio 39% 48% 25% /1 33% 40% Remarks: Dividend policy is paid annually not less than 40% of net profit (unless there is a 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 December 2011. 39
Appendix
Details of Borrowings Borrowing Type Tenor Coupon / Repayment Maturity Outstanding (Bt mil) (years) Interest Rate (pa.) Type Date as at December 31, 2011 Short-term Promissory Note up to 3 3.60% Bullet -- 500 Long-term Term Loan 3.5 3.14% Amortising Jun 2014 1,500 Term Loan 3.8 3.19% Amortising Sep 2014 875 Term Loan 3.9 3.84% Amortising Jan 2015 500 Term Loan (grace period of 2 years) 5.0 MLR-3.00% Amortising Aug 2016 500 Unsecured Bond 5.0 4.25% Bullet May 2012 3,000 Unsecured Bond 4.0 4.50% Bullet Apr 2013 2,000 Unsecured Bond 5.0 4.75% Bullet Apr 2014 1,000 Unsecured Bond 4.0 4.50% Bullet May 2013 1,200 Unsecured Bond 3.0 4.00% Bullet May 2012 1,000 Unsecured Bond 2.0 3 month fixed deposit rate + 1.15% Bullet May 2012 500 Unsecured Bond 5.0 3.95% Bullet May 2015 500 Unsecured Bond 5.0 3.96% Bullet Feb 2016 500 Unsecured Bond 5.0 3.95% Bullet Apr 2016 1,000 Unsecured Bond 5.0 4.52% Bullet Oct 2016 1,200 Unsecured Bond 7.0 4.79% Bullet Oct 2018 500 Unsecured Bond 10.0 5.00% Bullet Oct 2021 300 Unsecured Bond 3.5 3.83% Bullet Jun 2015 1,000 Unsecured Bond 5.1 4.06% Bullet Jun 2017 1,000 Thai Business Fund 5 (Property Fund) 15.0 MLR-1.25% Amortising Feb 2018 485 Thai Business Fund 5 (Property Fund) 15.0 6.00% Amortising Feb 2018 115 Project Finance (grace period of 2 years) 7.0 MLR-2.00% Amortising Sep 2015 1,175 Project Finance (grace period of 2 years) 7.0 MLR-2.00% Amortising Jan 2016 270 Project Finance (grace period of 2 years) 7.0 4.25% Amortising Jan 2016 1,000 Project Finance (grace period of 2 years) 7.0 MLR-2.00% Amortising Mar 2016 1,125 Project Finance (grace period of 2 years) 7.0 MLR-1.75% Amortising Nov 2016 800 Project Finance (grace period of 2 years) 7.0 4.65% Amortising Aug 2018 1,700 Total Borrowings 25,245 Less Cash and Current Investments 945 Net Borrowings 24,300 Source: Company data as of 31 December 2011. 41
Balance Sheet Dec 2010 Financial position (MB) Dec 2011 % Change (Restated) Current assets Cash and current investments 1,632 945 (42%) Other current assets 2,133 2,348 10% Total current assets 3,765 3,292 (13%) Non current assets Investment properties 29,955 40,743 36% Leasehold rights 13,549 13,478 (1%) Property & equipment (PP&E) 2,354 2,423 3% Other non current assets 4,246 4,123 (3%) Total Non current assets 50,104 60,767 21% Total assets 53,869 64,059 19% Current liabilities 10,153 15,355 51% Non current liabilites 24,798 28,255 14% Total liabilities 34,952 43,611 25% Total equities 18,918 20,448 8% 42
Income Statement Consolidated earnings (MB) 4Q10 3Q11 4Q11 % YoY % QoQ FY2010 FY2011 % YoY (Restated) Change Change (Restated) Change Revenues fromrentalrental and service 2,674 2,710 3,023 13% 12% 9,822 10,853 10% Retail 2,496 2,510 2,813 13% 12% 9,142 10,062 10% Office 173 195 204 18% 5% 655 767 17% Other supportive businesses 5 5 6 26% 26% 26 24 (8%) Hotel operations 53 100 128 142% 28% 157 465 196% Food & beverage sales 139 150 177 27% 18% 550 632 15% Other income 407 198 410 1% 106% 1,117 1,002 (10%) Total revenues 3,273 3,158 3,737 14% 18% 11,647 12,953 11% Costs of rental and service 1,635 1,817 1,862 14% 2% 6,387 7,050 10% Retail 1,503 1,675 1,719 14% 3% 6,213 6,499 5% Office 127 137 139 10% 2% 148 530 258% Other supportive businesses 5 5 4 (16%) (16%) 26 21 (17%) Costs of hotel operations 24 43 51 111% 19% 67 192 186% Costs of food & beverage 121 128 152 26% 19% 471 541 15% Total costs 1,780 1,988 2,065 16% 4% 6,924 7,783 12% Operating gp profit 814 619 914 12% 48% 2,074 2,807 35% Net profit 620 389 692 12% 78% 1,125 2,058 83% Net profit excluding non recurring items 552 389 505 (9%) 30% 1,552 1,871 21% EPS (Bt) excluding non recurring items 0.25 0.18 0.23 (9%) 30% 0.71 0.86 21% 43