Central Pattana Plc. Property Development and Investment Corporate Presentation: 3Q12 Performance Review CentralPlaza Suratthani
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. 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 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 CPN is the leading retail property developer and investor in Thailand with a 22% market share in Bangkok s mall leasable area. CPN manages 20 shopping centers, 7 office towers, 2 hotels, and 2 residential properties in Thailand. CPN continuously achieves strong growth of shopping complex through green-field developments, acquisition & redevelopments and asset enhancement projects. CPN is a fully integrated retail developer with unparallel synergies with its major shareholders, Central Group and unmatched financing capability through its property fund. CPN is the largest retail property developer on Stock Exchange of Thailand (SET) with a market capitalization of approx 130.7 Bt bn (1). Recent Achievements Excellence CG Scoring honored the company s corporate governance performance. ICSC Best of the Best Award - Design and Development CentralWorld honored and recognized the most outstanding shopping center design and development of CentralWorld. CNBC Best Mixed-Use Development Award honored the unique and exceptional design and environment concerns of CentralWorld. A+ Credit Rating was affirmed with stable outlook by TRIS Rating in May 2012. CPN is the property manager and largest shareholder in Thailand s leading REITs, 28% in CPN Retail Growth Leasehold Property Fund (CPNRF) and 25% in CPN Commercial Growth Leasehold Property Fund (CPNCG). On 30 Nov 2012, CPN was added to the MSCI Global Index, which are widely tracked global equity benchmarks and serve as the basis for over 500 exchanged traded funds throughout the world. Source: SetSmart as of 30 September 2012. 5
Green-field Development Strong Development & Acquisition Pipelines 1980 Established under CentralPlaza Co., Ltd. 1982 Opened CentralPlaza Ladproa The first integrated shopping complex in Thailand 1995 Opened CentralPlaza Pinklao AND Central Center Pattaya 1993 Opened CentralPlaza Ramindra 1997 Opened CentralPlaza Ratchada Rama 3 2002 Opened CentralPlaza Rama 2 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 Grand Rama 9 2012 (NEW) Open CentralPlaza Suratthani and CentralPlaza Lampang 2013 Open CentralPlaza Ubonratchathani (NEW) and CentralFestival Hatyai and CentralFestival Chiangmai Acquisition & Redevelopment CPN current portfolio: 20 Shopping Centers 7 Office Towers 1996 Acquired full equity stake in CentralPlaza Chiangmai Airport 2000 Completed CentralPlaza Chiangmai Airport Phase 2A 2001 Acquired full equity stake in CentralPlaza Bangna 2002 Acquired CentralWorld (Formerly World Trade Center) Acquired CentralPlaza Rattanathibet (Formerly Siam Jusco Rattanathibet) AND completed CentralPlaza Chiangmai Airport Phase 2B 2006 Completed CentralWorld 2004 Completed The Offices at CentralWorld 2003 2012 Opened CentralPlaza Udonthani (Phase 2) 2009 Acquired CentralPlaza Udon Thani (formerly Charoensri Complex) 4 Projects Under Development Source: Company data and company estimates as of 30 September 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 leasable space. 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 24% Central Group totaling 59% Foreign funds 66% Individuals 10% Source : Company estimate as of 5 October 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 (CPN) Central Retail Corporation (CRC) Centara Hotel (CENTEL) Central Marketing 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, Office Depot, TopsSupermarket, etc. Owner of Centara hotel and resorts, owning 15 hotels and managing 46 hotels Also franchisees of 12 fastfood retail chains including KFC, Mister Donut, Café Andonand, Auntie's Anne, Pepper Lunch, Beard papa s, RYU, Cold Stone, Chabuton, Ootoya, Yoshinoya, The Terrace Owner of more than 100 international retail franchisees for - Apparel: MNG, G2000, TOPSHOP, Dorothy Perkins, agnès b, Hush Puppies, Wrangler, Lee, FCUK... - Beauty & Personal Care: Clarins, Elizabeth Aden - Others: Samsonite, Pentax, Guess watch, Casio... 9
Property Development and Management Shopping Mall Department Store CRG CMG CRC Property Developer & Property Manager Tenants ~10% of total leasable areas and also in term of total revenue Pricing criteria as same as others Joint developers Sharing cost of land and common area Owning its investment cost and assets
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 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 Leading Property Fund (CPNRF and CPNCG) CPNRF and CPNCG are property funds 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 11
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 Over 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 19 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 12
Operational Performance
Property Locations Existing Projects: Shopping Centers: 20 World Format 1 (BMA) Plaza Format 17 (9 - BMA) (8 - 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 - Ubonratchthani - Hatyai (Songkla) - Chiangmai Bangkok Metropolitan Area (BMA) Note : As of 30 December 2012. 14
Leasable Area and Occupancy: Bangkok Retail As of 3Q12, CPN manages 20 premium shopping centers 10 in Bangkok Metropolitan Area (BMA) and its vicinities and 10 in provincial areas. In 3Q12, occupancy of the BMA shopping centers stood at 97%. Retail Properties in BMA Leaseable area (1) (sqm) Occupancy Rate (2) CPN Retail Properties Development Land Ownership Retail Department Store Total 3Q12 2Q12 3Q11 1. Lardprao Greenfield Leasehold 48,140-48,140 100% 100% 97% 2. Ramindra Greenfield Leasehold 17,156-17,156 100% 100% 98% 3. Pinklao (3) Greenfield Leasehold 35,575-35,575 100% 100% 99% 4. Rama 3 (3) Greenfield Freehold 18,192-18,192 85% 100% 100% 5. Bangna Acquisition Freehold 58,112-58,112 91% 96% 95% Under renovation. 6. Rama 2 (3) Greenfield Leasehold 5,937-5,937 100% 100% 100% 7. Rattanathibet Acquisition Freehold 59,680 17,558 77,238 100% 98% 98% 8. CentralWorld Acquisition Leasehold 141,029 18,970 187,054 98% 98% 88% 27,055 9.Chaengwattana Greenfield Freehold 64,458-64,458 95% 95% 96% 10.Grand Rama 9 Greenfield Leasehold 59,505 23,432 82,937 99% 99% n/a CPN Portfolio in BMA 507,784 87,015 594,799 (4) 97% 98% 94% Underwent a major renovation during May 10 Nov 11. Opened in Dec11. 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. 15
Leasable Area and Occupancy: Provincial Retail 8 shopping centers are strategically located in high traffic growth areas in provinces. Occupancy rate in 3Q12 averaged 98%. Information of 2 new more shopping centers in Suratthani and Lampang will be updated in 4Q12 Retail Properties in Provincial Areas CPN Retail Properties Development Land Leaseable area (1) (sqm) Occupancy Rate (2) Ownership Retail Department Store Total 3Q12 2Q12 3Q11 1. Pattaya Center Greenfield Leasehold 15,226-15,226 97% 97% 93% 2. Chiangmai Acquisition Freehold 45,140 30,751 75,891 99% 98% 99% 3. Pattaya Festival Greenfield Freehold 57,161-57,161 96% 96% 97% 4. Udonthani Acquisition Freehold 45,196 23,640 68,836 99% 98% 91% 5. Chonburi Greenfield Freehold 40,386-40,386 96% 94% 96% Underwent a major renovation during Jun 11 Mar 12. 6. Khonkaen Greenfield Freehold 50,146-50,146 95% 96% 93% 7. Chiangrai Greenfield Freehold 21,459-21,459 98% 98% 98% 8. Phitsanulok Greenfield Freehold 24,974-24,974 100% 100% n/a Opened in Oct 11. CPN Portfolio in Provinces 299,688 54,391 354,079 98% 97% 96% Total CPN Portfolio for Retail Properties 807,472 141,406 948,878 98% 98% 95% Note 1: Excludes rental agreements < 1 year, such as kiosk, carts, ATMs and coin machines. Note 2: Percentage based on leaseable area. Note 3: CentralPlaza Suratthani opened in October 2012 with an occupancy rate 93% Note 4: CentralPlaza Lampang was launched on November 30 with approximately 90% occupancy rate 16
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 3Q12, CPN owned five office towers located in BMA with an average occupancy rate of 96%. Office Development Land Ownership Leaseable area (1) (sqm) Occupancy Rate (2) 3Q12 2Q12 3Q11 1. Lardprao Greenfield Leasehold 16,250 96% 99% 22% Completed its major renovation in 1Q11. 2. Bangna Acquisition Freehold 10,007 94% 97% 99% 3. CentralWorld Acquisition Leasehold 82,796 98% 97% 89% Divested to CPNCG in Sep 12. 4. Chaengwattana Greenfield Freehold 19,867 84% 85% 56% 5. Grand Rama 9 Greenfield Leasehold 13,163 95% 94% n/a Opened in Dec 11. Total 142,082 96% 95% 76% Note 1: Excludes storage. Note 2: Percentage based on leaseable area. 17
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) (sqm) Occupancy Rate (2) 3Q12 2Q12 3Q11 1. Bangna 1,907 47% 47% 49% 2. Langsuan 4,466 61% 65% 64% Strata title. Asset for sales. 50-unit furnished apartment. Total 6,373 57% 60% 60% Hotel Hotel No. of Available Room Occupancy Rate % 3Q12 2Q12 2Q11 Centara Udonthani 259 56% 53% n.a Closure for refurbishment during Jun 11 Dec 11. Managed by Central Plaza Hotel Plc. Hilton Pattaya 302 63% 76% 59% Launched in Dec 10. Managed by Hilton Hotel Corporation Total 561 60% 66% 59% Note 1: Includes retail space. Excludes storage. Note 2: Percentage based on leaseable area. 18
Operation Performance: CPNRF In 3Q12, 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) Occupancy Rate (2) 3Q12 2Q12 3Q11 1. Rama 2 Greenfield Leasehold 88,945 100% 99% 100% 2. Rama 3 Greenfield Freehold 37,053 99% 100% 96% 3. Pinklao Greenfield Leasehold 21,706 99% 98% 94% CPNRF Retail Properties 147,704 100% 99% 98% CPNRF Office Properties Development Land Ownership Leaseable area (1) (sqm) Occupancy Rate (2) 3Q12 2Q12 3Q11 Pinklao Tower A & B Greenfield Leasehold 33,760 97% 98% 97% CPNRF Portfolio 181,464 99% 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. 19
Rental Contract Type : By Area Monthly basis collection (up to 3 years) 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 Increase rental rate approx 5% p.a. Approx. 1/3 of rental contract expired every year 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 30 September 2012. 20
Effective Rental Rate (1) Overall effective rental rate declined in 2009 2011 from new malls in provinces. 3Q12 same store rental rate grew 12% y-o-y. Same store rental rate of matured malls Same Store Rental + 12% YoY Excludes, CentralPlaza Lardprao, and malls launched during 2008-2012 (2) Same store rental rate of new malls (2) All projects Excludes CentralPlaza Udonthani, CentralPlaza Lardprao, and new malls launched in 2H 2011 Excludes CentralPlaza Udonthani, malls launched in 2H 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 3-4 years CentralPlaza Chaengwattana, CentralFestival Pattaya Beach, CentralPlaza Udonthani, CentralPlaza Chonburi, CentralPlaza Khonkaen, and newly launched malls opened in 2011. Note 3 : CentralPlaza Udonthani, CentralPlaza Phitsanulok, and CentralPlaza Grand Rama 9. Source: Company estimate as of 30 September 2012. 21
Expiration of Long term lease contract (1) Long term lease contract will be expired in each following year from now. At that day, these area will be converted to short term contract at market rental rate which could be increased the company s revenues. The expiration area and expiration period are shown below : (1) Source: Company estimate as of 30 September 2012 22
Future Developments
Secured Future Locations CentralFestival Chiangmai NLA: 46,700 sqm Opening in 4Q 2013 CentralPlaza Ubonratchathani NLA: 25,300 sqm Opening in 2Q 2013 CentralFestival Hatyai NLA: 50,100 sqm Opening in 4Q 2013 Note: As of 31 December 2012. 24
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 75% of construction Opening (tentative) 11 Oct 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. 25
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 92% of construction (As of Oct 12) Opening 30 Nov 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. 26
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 42% of construction (As of Oct 12) Opening (tentative) 2Q 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. 27
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 68 rais, Chiangmai Province North of Thailand Development Progress 5% of construction (As of Oct 12) 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. 28
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 7% of construction (As of Oct 12) 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. 29
Future Leaseable Area & Occupancy Rate Retail NLA (sqm) 1,800,000 92% 97% 97% 96% 95% 96% 98% 96% 95% 95% 100% 1,600,000 1,400,000 1,200,000 1,000,000 800,000 80% 60% Under study projects Under developing projects Exisitng projects % Occupancy (RHS) 600,000 40% 2006 2007 2008 2009 2010 2011 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 30 September 2012. 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) Source: Company estimate as of 30 September 2012. Note 1: Tentative development projects. 31
3Q12 Financial Performance
Financial Summary 6-mth closure of CentralPlaza Lardprao 15,000 12,500 (Bt.mil) 11,755 6-mth closure of CentralWorld 11,388 12,766 13,089 10,000 7,500 8,282 9,271 5,000 2,500 0 5,079 4,499 4,432 4,495 2,991 3,112 3,158 2,404 2,442 2,620 2,843 1,541 1,550 619 1,171 1,569 2,158 2,292 1,552 1,871 3,478 389 1,242 2007 2008 2009 2010 2011 9M12 3Q11 2Q12 3Q12 /1 Total revenues Operating profit Net profit Net profit inc. non-recurring 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 16,000 (Bt.mil) +42% YoY 13,100 +1% QoQ 12,000 9,216 8,000 4,437 4,495 4,000 3,158 0 9M11 9M12 3Q11 2Q12 3Q12 Other income Hotel F&B Office Retail Retail & office +44% YoY, mainly from: Strong increases in rental rates and decrease of discount at most of retail properties. Contributions from new projects CentralPlaza Phitsanulok, CentralPlaza Grand Rama 9 launched in 2011. The completion of CentralPlaza Udonthani expansion and renovation in March 2012 The re-launch of CentralPlaza Lardprao in August 2011. Continuous improvement of CentralWorld. 3Q12 Revenue breakdown Retail Hotel revenues +70% YoY, due to re-launch of Centara Hotel & Convention Center Udonthani and continuous improvement of Hilton Pattaya Hotel. Retail 82% Office 5% F&B 4% Hotel 4% Other income 5% Office F&B Hotel Other income F&B sales +14% YoY from Higher sales at CentralFestival Pattaya Beach. Contributions from the new food centers at the CentralPlaza Udonthani 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 Cost of retail & office +19% YoY from: (Bt.mil) 10,000 8,000 6,000 5,718 6,855 +25% YoY +3% QoQ Costs of the newly launched projects. Higher amortizations of CentralPlaza Lardprao after renovation. Depreciations of the newly launched projects. 4,000 2,000 0 1,893 2,300 2,370 9M11 9M12 3Q11 2Q12 3Q12 Others Hotel F&B Office Retail Retail 85% 3Q12 Cost breakdown Office 6% F&B 6% Others 0% Hotel 3% Cost of hotel business +61% YoY from the increased income from hotel operations. F&B costs +12% 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 Udonthani 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 +6% YoY 1,782-2% QoQ 1,632 553 608 593 9M11 9M12 3Q11 2Q12 3Q12 Others Depreciation Advertising & promotion Personnel Personnel expenses +14% YoY from: Increased number of employees to support business expansion and increased minimum based salary. Advertising & promotion -10% YoY, due to the effective cost management thru top-line driven basis 3Q12 SG&A breakdown Personnel 50% Advertising & promotion 15% Depreciation 16% Others 19% Note1: Excludes non-recurring items. 36
Debt Analysis Outstanding Borrowings 26,492mil (THAI BAHT) Fixed vs. Floating Interest Rate Mix Long-term loan 47% Floating 17% Short-term bond 12% Long-term bond 32% Financing Cost (Bt.mil) Short-term loan 9% Fixed 83% 1,400 1,200 1,000 800 600 400 200 0 5.5% 5.2% 4.7% 4.4% 4.3% 4.2% 4.4% 4.4% 874 745 688 581 543 336 235 254 2007 2008 2009 2010 2011 3Q11 2Q12 3Q12 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. /1 6% 5% 4% 3% 2% 1% 0% 37
Capital Structure CPN s net D/E stood at 1 times, against its debt covenant of 1.75 times. 38
Share Price Performance and Dividend (Baht/share) Share overview Par Value (Bt) Stock Price (Bt) FY12 core EPS (Bt/share) /1 P/E (Times) /1 EV/EBITDA (Times) /1 Market Capitalization (Bt bn.) Share Capital (mil.shares) 1.00 60.00 1.96 35.1 21.4 130.7 2,178.8 Dividend policy is 40% of normal net profit. Par Value (Bt) Dividend (Bt/share) Dividend Paid (Bt mil) Dividend Payout Ratio 2011 1.00 0.37 806 39% 2010 1.00 0.25 545 48% 2009 1.00 0.58 1,264 25% /1 2008 1.00 0.33 719 33% 2007 1.00 0.33 719 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 September 2012. Note 1: Bloomberg s consensus as of 7 November 2012. 39
Appendix
Balance Sheet 41
Income Statement Consolidated earnings (MB) 3Q11 2Q12 3Q12 % YoY % QoQ Change Change Revenues from rental and service 2,710 3,792 3,915 44% 3% Retail 2,511 3,549 3,666 46% 3% Office 195 238 245 26% 3% Other supportive businesses 5 5 4 (16%) (16%) Hotel operations 100 163 170 70% 4% Food & beverage sales 150 180 170 14% (5%) Other income 198 298 239 21% (20%) Total revenues 3,158 4,432 4,495 42% 1% Costs of rental and service 1,817 2,085 2,157 19% 3% Retail 1,676 1,930 2,003 19% 4% Office 137 150 150 9% (0%) Other supportive businesses 5 5 5 (2%) (2%) Hotel operations 43 64 69 61% 8% Food & beverage sales 128 151 144 12% (5%) Total costs 1,988 2,301 2,370 19% 3% Operating profit 619 1,541 1,550 150% 1% Net profit 389 1,171 2,843 632% 143% Net profit excluding non-recurring items 389 1,171 1,242 220% 6% EPS (Bt) excluding non-recurring items 0.18 0.54 0.57 217% 6% EPS (Bt) including non-recurring items 1.31 42