Central Pattana Plc.Property Development and Investment
C t P t ti 4Q11 & FY11Corporate Presentation: 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 orCPN, 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.
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2Note: All currency figures within this presentation are presented in Thai Baht unless otherwise stated.
Agenda
► Company Overview
► Operations
► Future Developments► Future Developments
► Financial Highlights
Company OverviewCompany Overview
Business Overview
“Excellence CG Scoring” honored the company’s CPN is the leading retail property developer and
Highlights Recent Achievements
g p ycorporate governance performance.
“ICSC Best of the Best Award - Design and Development – CentralWorld” honored and recognized the most outstanding shopping center
investor in Thailand with a 22% market share in Bangkok’s mall leaseable area.
CPN manages 18 shopping centers, 7 office towers, 2 hotels, and 2 residential properties in Thailand. 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
, p p
CPN continuously achieves strong growth of shopping complex through green-field developments, acquisition & redevelopments and asset enhancement projects.
environment concerns of CentralWorld.
“A+ Credit Rating” was affirmed with stable outlook by TRIS Rating in September 2011.
CPN is a fully integrated retail developer with unparallel synergies with its major shareholders, Central Group and Thailand Equity Fund, 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. USD 2.6 bn (1).
CPN is the property manager and largest shareholder p p y g g(28%) in Thailand’s largest REIT - CPN Retail Growth Leasehold Property Fund (CPNRF) with a market capitalization of approx. USD 663 mil (1).
5Source: SetSmart as of 30 December 2011.
Strong Development & Acquisition Pipelines2009Opened “CentralFestival Pattaya Beach”,
2011 Opened “CentralPlaza Chiangrai” and
1980Established under “CentralPlaza Co., Ltd.” 2002
Opened 2008
p y ,“CentralPlaza Chonburi” AND “CentralPlaza Khon Kaen”
2010Opened “Hilton Pattaya Beach Hotel”
opm
ent
Opened CentralPlaza Chiangrai and“CentralPlaza Phitsanulok“, and ”CentralPlaza Rama 9”
1982 Opened “CentralPlaza Ladproa”
The first integrated shopping complex in Thailand
1995 Opened “CentralPlaza Pinklao” AND “Central Center Pattaya”
1997 Opened “CentralPlazaRatchada Rama 3”
Opened “CentralPlaza
Rama 2”
2008
Opened “CentralPlazaChaengwattana”
2012 (NEW)Open“CentralPlaza Suratthani” and“CentralPlaza Lampang” -f
ield
Dev
elo
1993
Opened “CentralPlaza Ramindra”
2013 (NEW)Open “CentralFestival Hatyai” and “CentralFestival Chiangmai”and “CentralPlaza Ubonratchathani”
Gre
en-
1996
Acquired full equity stake in “CentralPlaza Chiangmai Airport”
2000 2002
2012 (Enhancement)
Complete “CentralPlazaUdonthani Phase 2”op
men
t
2000
Completed “CentralPlaza Chiangmai Airport Phase 2A”
2001
Acquired full equity stake in
2002
Acquired “CentralWorld”(Formerly World Trade Center) 2004
Completed
2006Completed “CentralWorld”
2009
Acquired “CentralPlaza Udon Thani”(formerly Charoensri Complex)
Udonthani Phase 2
n &
Rede
velo
q q y“CentralPlaza Bangna”
2003
Acquired “CentralPlaza Rattanathibet” (Formerly Siam Jusco Rattanathibet) AND completed
“CentralPlaza Chiangmai Airport Phase 2B”
Completed “The Offices at CentralWorld”
CPN current portfolio:18 Shopping Centers7 Office Towers
5 Projects Under DevelopmentAc
quis
ition
6Source: Company data and company estimates as of 31 December 2011..
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.g p pp g p
CPNCPN 22%
h ll GOther The Mall Group9%
Future Park
Other45%
Rangsit4%
Siam Paragon4%
Seacon Square7%Siam Future
Fashion Island 3% 7%S a utu e
6%3%
7Source : Company estimate as of 30 June 2011.
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 y g p y p pshopping mall developments and department store / specialty stores operations.
Chirathivat Family32%
Local funds22%
32%
Others (Free float)Central Group totaling 59%
Foreign funds65%
Individuals13%
( )41%
totaling 59%
Central Group27%
8Source : Company estimate as of 15 September 2011.
Strategic Shareholder: Central GroupCPN’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 Familyp y
Centara HotelCentral Pattana Central Retail Central Marketing
100%59% 67% 100%
(CENTEL)(CPN) Corporation (CRC)g
Group (CMG)
Owner of Centara hotel, resorts, and convention
centers, and also franchisees of fast-food retail chains including
KFC, Mister Donut,
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
Owner of international retail franchisees for; - Cosmetics : Clarins, Elizabeth Aden, Payot...
- Apparel : MNG, G2000, U2, TOPSHOP, Dorothy Perkins,, ,
Auntie's Anne, Pepper Lunch, beard papa’s,
Cold Stone, Chabuton, Ootoya, Yoshinoya
,Department Stores,
Power Buy, Super Sports, B2S, homeworks,
Tops Supermarket, Office Depot, etc.
TOPSHOP, Dorothy Perkins, agnès b, Hush Puppies,Wrangler, Lee, FCUK, Energy, Miss Sixty...
- Others : Samsonite, Pentax, Guess watch, Casio....
9
Fully Integrated Business PlatformCPN 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 ill thi i t t d b i l tf t d f th th h t Th il d i t i i k t h iCPN 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 CPNRF – Property FundCPNLargest property fund in ThailandLeading retail developer propertyLargest and most popular retail Largest property fund in Thailand
Provide optimal funding source:
Unlock CPN’s asset value
Free up capital for businessexpansion
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
Largest and most popular retail chains in Thailand
Guarantee space take-up with successful brands and store concepts
I l t ffip
Lower leverage and avoid dilution
Create fee base income
Improve CPN’s financial position:
property management teams have ensured continuous success for over 30 years
Strategic location
Optimal tenant mix
Increase people traffic
Most successful and most experienced retail company in Thailand
Attract tenants to locate in Tax benefit
Capital redeployment to projects with higher return
World class standard
Branded malls to ensure innovative designs and functionality to suit customer needs
CPN shopping centers
Allow CPN to achieve higher rental rates than others
10
Key Success Factors
“ Unrivalled Leading Player in the Retail Property Development Industry ”
Central’s Group Synergy
Business alliances and joint developers, building confidence among prospects
and attracting shoppers
y gy
Experienced & Hands-on
Management
High Revenue Generating
Capability at Sustainable
30-yeared experience in retail property development &
management
Recurring income from monthly rent with proven sustainable rental growth
Site selection, merchandizing mix and
Growth Rate
Focus on Retail Property
Prudent Financial
merchandizing mix, and retail business know-how’s
Development in Prime Locations
with Solid Operating
PerformanceDynamically
Management and
Financial Flexibility
High quality shopping centers: high occupancy & traffic flow and sustainable rental growth
Enhanced funding capability through REIT vehicle. Business growing at a low gearing
Dynamically Innovative &
DiversificationStep-up rental structure. Well diversified portfolio in 16 high traffic growth areas
11
Operational PerformanceOperational Performance
Property Locations Existing Projects:Shopping Centers: 18
World Format 1 (BMA)Plaza Format 15 (9 - BMA)
Thailand
Plaza Format 15 (9 BMA)(6 - Province)
Center Format 1 (Province)Festival Format 1 (Province)
Offices: 7 (BMA)
Pure-managed (CPNRF)
Equity-owned (CPN)
Under constructionHotel: 2 (Province)
Pipeline Projects:Bangkok Metropolitan Area (BMA)
Shopping Centers:BMA
- Suan Lumpini (Pre-Cadet School)
Provinces
- Suratthani- Lampang- Ubonratchthani- Hatyai (Songkla)- Chiangmai- Chiangmai
13Note : As of 31 December 2011.
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- LandLeaseable
area (1)
No.of
Tenants
Occupancy Rate (2)
Closure for major renovation during Feb - Aug 2011.
Properties ment Ownership(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%
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.
Under major renovation. Full opening is expected in Jan 12.
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
CPN Portfolio in BMA 592,913(4) 2,188 95% 94% 94%
Opened in Dec11.
14Note 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.
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-
t
LandLeaseable
area (1)
No.of
Tenants
Occupancy Rate (2)
Properties ment Ownership(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%
5. Chonburi Greenfield Freehold 40,294 301 97% 96% 95%
Under renovation.
Opened in Mar 11.
6. Khonkaen Greenfield Freehold 50,156 363 96% 93% 87%
7. Chiangrai Greenfield Freehold 23,515 116 98% 98% n/a
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%
15Note 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.
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%.
OfficeDevelop- Land
Leaseable
area (1)
No.of
Tenants
Occupancy Rate (2)
Officement Ownership
(sqm) 4Q11 (1) 4Q11 3Q11 4Q10
1. Lardprao Greenfield Leasehold 16,397 66 94% 82% 16%
2. Bangna Acquisition Freehold 10,007 27 92% 94% 99%
Completed its major renovation in 1Q11.
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%
p
16Note 1: Excludes storage.Note 2: Percentage based on leaseable area.
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.
ResidentialLeaseable area (1)
(sqm)
Occupancy Rate (2)
4Q11 3Q11 4Q10
Residential
(sqm) 4Q11 3Q11 4Q10
1. Bangna 1,907 43% 49% 55%
2. Langsuan 4,466 56% 64% 72%
T t l
50-unit furnished apartment.
Strata title. Asset for sales.
Total 6,373 52% 60% 67%
No. of Occupancy Rate %
Hotel
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%
Total 561 46% 59% 51%
Launched in Dec 11. Managed by Hilton Hotel Corporation
17Note 1: Includes retail space. Excludes storage.Note 2: Percentage based on leaseable area.
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
PropertiesDevelop-
ment
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 LandLeaseable No.of Occupancy Rate (2)
CPNRF Office
PropertiesDevelop-
ment
Land
Ownershiparea (1)
(sqm)
Tenants
4Q11 (1) 4Q11 3Q11 4Q10
Pinklao Tower A & B
Greenfield Leasehold 33,760 103 97% 97% 97%
CPNRF Portfolio 192,956 772 98% 97% 97%
18Note 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.
Effective Rental Rate (1)
1 4811,600
(Bt/sm/mth)
Same store rental rate of matured mallsOverall effective rental rate declined in 2009 – 2011 from new malls in provinces. 4Q11 same store rental rate grew 9.4% y‐o‐y.
1,325
1,481
1,000
1,200
1,400
1,600
Same Store Rental +9.4% YoY
800
,
4Q10 4Q11
1,220 1,274 1,254 1,225 1,248
1,214
1,329
1 200
1,400
(Bt./sqm/mth)
Excludes CentralWorld and malls launched during 2008-2011 (2)
1,200
(Bt/sm/mth)
800
1,000
1,200
Same store rental rate of new malls (2)
1,047
1,098
1,000
1,100
,
600
800
2007 2008 2009 2010 2011 4Q10 4Q11
900 4Q10 4Q11
Excludes CentralWorld and new malls launched in 2011All projects
Excludes malls launched in 2011 (3)
19Note 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.
Rental Contract Type
• Tenants: food centers, cineplex and international brands such as “M D ld ” “KFC”
(up to 3 years)Monthly basis collection% of Sales
24%
(up to 3 years)Monthly basis collection
“McDonalds”, “KFC”• Range of percentage: 10% ‐ 30%
of sales• With minimum guarantees
Fixed rent51%
• Increase rental rate approx 5% p.a.
• Approx. 1/3 of rental contract expired every year
Long‐term lease25%
(up to 20 years)Up‐front collection
• Up‐front payment – realize throughout lease contract period on straight‐line basisperiod on straight‐line basis
Note: On top of space rental fee, service & utility fees are collected on a monthly basis
20Note1: Percentage based on occupied area. Excludes closed space at CentralWorld.Source: Company estimate as of 31 December 2011.
Future DevelopmentsFuture Developments
Secured Future Locations
CentralFestival ChiangmaiNLA 46 700 sqmCentralPlaza Lampang NLA: 46,700 sqmOpening in 4Q 2013
CentralPlaza LampangNLA: 16,100 sqm
Opening in 4Q 2012
CentralPlaza UbonratchathaniNLA: 25,300 sqmOpening in 1Q 2013
CentralPlaza SuratthaniNLA: 25,100 sqmOpening in 4Q 2012
CentralFestival HatyaiNLA: 50,100 sqm
Opening in 3Q 2013
22Note: As of 31 December 2011.
CentralPlaza Suratthani
Project Highlights
Investment Cost (1) 2,000 MB
Program
Shopping Center (N.L.A.) 25,100 sqm (2)
Parking (G.A) 1,400 cars
Joint- Developer Robinson Department Store (3)
Location 62 rais, Suratthani ProvinceSouth of Thailand
Construction Progress 24% of constructiong
Opening (tentative) 4Q 2012
23Note1: 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.
CentralPlaza Lampang
Project Highlights
Investment Cost (1) 1,100 MB
Program
Shopping Center (N.L.A.) 16,100 sqm (2)
Parking (G.A) 800 cars
Joint- Developer Robinson Department Store (3)
Location
Construction Progress
39 rais, Lampang ProvinceNorth of Thailand
20% of construction
Opening (tentative) 4Q 2012
24Note1: 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.
CentralPlaza Ubonratchathani
Project Highlights
Investment Cost (1) 1,800 MB
Program
Shopping Center (N.L.A.) 25,300 sqm (2)
Parking (G.A) 1,500 cars
Joint- Developer Robinson Department Store (3)
Location 76 rais, Ubonratchathani Province Northeast of Thailand
Construction Progress Detailed studyConstruction Progress eta ed study
Opening (tentative) 1Q 2013
25Note1: 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.
CentralFestival Chiangmai
Project Highlights
Investment Cost (1) 3,100 MB
Program
Shopping Center (N.L.A.) 46,700 sqm (2)
Parking (G.A) 1,500 cars
Joint- Developer Central Department Store (3)
Location 68 rais, Chiangmai ProvinceNorth of Thailand
Development Progress Detailed studyp g
Opening (tentative) 4Q 2013
26Note1: 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.
CentralFestival Hatyai
Project Highlights
Investment Cost (1) 4,500 MB,
Program
Shopping Center (N.L.A.) 50,100 sqm (2)
Multi-purposed Hall 4,800 sqm
Parking (G.A) 2,100 cars
Joint- Developer Central Department Store (3)
Location 50 rais, Hatyai ProvinceSouth of Thailand
Construction Progress Detailed study
Opening 3Q 2013
27Note1: 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.
Asset Enhancement ProjectsAsset Enhancement Projects
CentralPlaza Udonthani and Centara UdonthaniInvestment Cost (1) 2,400 MB
ProgramShopping Center New retail space (NLA) of 27,530 sqm
New space
New anchors, including TOPS, PowerBuy, and SuperSportNew parking building (5 floors with over 700 parking spaces)New Multi-purposed Hall of 4,900 sqm
Hotel Face lift with new interior design
Location Northeast of Thailand
Construction Period 2Q11 – 1Q12
Impact • Increased leasable area with more leading brandsff f• Increased traffic flow and rental income
29As of 31 December 2011 .Note 1: Includes those of shopping center and office.
Future Leaseable Area & Occupancy Rate
Retail NLA (sqm)
80%
100%
1 400 000
1,600,000
1,800,000
Under study projects
60%
80%
1,000,000
1,200,000
1,400,000
Under developing projects
Exisitng projects
40% 600,000
800,000
006
007
008
009
010
011
12F
13F
14F
15F
% Occupancy (RHS)
20 20 20 20 20 20 201
201
201
201
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
30Source: 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.
Capital ExpenditureMajor 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 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
31Source: Company estimate as of 31 December 2011. Note 1: Tentative development projects.
4Q11 & FY2011 Financial Performance
Financial Summary
(Bt.mil) 6-mth closure of CentralWorld
6-mth closure of CentralPlaza Lardprao
9 271
11,755 11,388
12,766 12,500
15,000 of CentralWorld
8,282 9,271
5,000
7,500
10,000
3,176 3,158 3,550 2,404
2,991 3,112 2,442 2,620
751 619 728 1,569 2,158 2,292 1,552 1,871 555 389 505
0
2,500
,
2007 2008 2009 2010 2011 4Q10 3Q11 4Q11
Total revenues Operating profit Net profit/1
% 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%
33Excludes 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..
Revenues Breakdown
12 76516,000
(Bt.mil)
+16% YoY
Retail & office +13% YoY, mainly from:
• Strong increases in rental rates at most of t il ti
11,388 12,765
8,000
12,000 +12% QoQ
retail properties.
• Contributions from new projects –CentralPlaza Chiangrai, CentralPlazaPhitsanulok, CentralPlaza Grand Rama 9 –
3,176 3,158 3,550
0
4,000
2010 2011 4Q10 3Q11 4Q11
launching in 2011.
• Lower contributions from CentralWorldduring major renovation in 4Q10.
l2010 2011 4Q10 3Q11 4Q11
Other income Hotel F&B Office Retail
Hotel revenues +142% YoY, due to a full‐quarter contribution from Hilton Pattaya Hotel –launched in December 2010.
F&B sales +27% YoY from2011 Revenue breakdown
F&B sales +27% YoY from
• Higher sales at CentralFestival PattayaBeach.
• Contributions from the new food centers at
Office6%
F&B5% Contributions from the new food centers at
the CentralPlaza Chiangrai and CentralPlazaPhitsanulok.
Retail79%
Hotel4%
Other income6%
34Excludes non-recurring income.Note1: Includes revenues from residential projects and water & amusement park, and property management fees from CPNRF.
Costs Breakdown
10,000
(Bt.mil)Cost of retail & office +14% YoY from:
• Costs of the newly launched projects.
6,925 7,783
4 000
6,000
8,000 +16% YoY+4% QoQ
• Higher depreciations of CentralPlazaLardprao after renovation.
• Depreciations of the renovated areas at CentralWorld – re‐launching in December
1,780 1,988 2,065
0
2,000
4,000
2010 2011 4Q10 3Q11 4Q11
CentralWorld re launching in December 2010.
Cost of hotel business +111% YoY from the2010 2011 4Q10 3Q11 4Q11
Others Hotel F&B Office Retail
Cost of hotel business +111% YoY from the newly launched Hilton Pattaya Hotel.
F&B costs +16% YoY from2011 Cost breakdown
• 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
Office7%
F&B7%
CentralPlaza Chiangrai and CentralPlazaPhitsanulok.Retail
84%
Hotel2%
Others0%
35Note1: Excludes non-recurring items.
SG&A Expenses Breakdown
3,000
(Bt.mil) Personnel expenses +70% YoY from:
• Increased number of employees to support b i i
2,069
2,410
1,500
2,000
2,500 +16% YoY+39% QoQ
business expansion.
Advertising & promotion ‐10% YoY, due to an improved market sentiment and an efficient
671 558 778
0
500
1,000
2010 2011 4Q10 3Q11 4Q11
cost management to top‐line driven basis.
Depreciations +121% YoY from2010 2011 4Q10 3Q11 4Q11
Others Depreciation Advertising & promotion Personnel
• Full‐quarter depreciations of the new Hilton Pattaya Hotel.
2011 SG&A breakdown
Personnel
Advertising & promotion
20%
45%Depreciation
14%
Others21%
36Note1: Excludes non-recurring items.
21%
Debt AnalysisOutstanding Borrowings Bt 25,245 mil Fixed vs. Floating Interest Rate Mix
Long‐term loan32% Floating
Short‐term bond18%
Floating9%
Financing Cost
Long‐term bond40%
Short‐term loan10%
Fixed91%
5.5% 5.2%
4.7% 4.4% 4 3% 4 3% 4 3% 4 2% 4 3% 5%
6%
1,200
1,400
(Bt.mil)
Financing Cost
581 543
745 688 874
205 235 256
4.3% 4.3% 4.3% 4.2% 4.3%
2%
3%
4%
400
600
800
1,000
178 205 235 256
0%
1%
0
200
2007 2008 2009 2010 2011 1Q11 2Q11 3Q11 4Q11
Interest expenses Weighted average cost of debt (RHS)/1
p g g ( )
37Note 1 : Weighted average interest rate was derived from interest expenses including interest capitalization for projects under development.
Capital Structure
CPN’s net D/E stood at 1.2 times, against its debt covenant of 1.75 times.
(Times)(Bt.mil)
16,445 16,669
19,085 19,849 21,223
25,361 25,245
19,008 18,918 19,527
19,346 19,749 20,448
0 921.04
1.24 1.19
0 80
1.00
1.20
1.40
20,000
25,000
30,000
3,983 3,677 2 541
12,045
,
13,639 15,173
0.59
0.84 0.74
0.92 0.97
0 20
0.40
0.60
0.80
5,000
10,000
15,000
2,541 1,632 873 1,032 879 945
‐
0.20
0
,
2007 2008 2009 2010 1Q11 2Q11 3Q11 4Q11
Cash & current investment Interest bearing debts Equity Net D/E
38
Share Price Performance and Dividend
50
Baht/share Volume (RHS) CPN Price (LHS)
30
40
0
10
20
Par Value (Bt) 1.00 2011 2010 2009 2008 2007
Dividend policy is 40% of normal net profit.Share overview
0
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
( )
Stock Price (Bt)
FY11 core EPS (Bt/share)
P/E (Times)
P/BV (Times)
37.75
0.94
40.2
4 1
Par Value (Bt)
Dividend (Bt/share)
Dividend Paid (Bt mil)
2011
1.00
0.37
806
2010
1.00
0.25
545
2009
1.00
0.58
1,264
2008
1.00
0.33
719
2007
1.00
0.33
719P/BV (Times)
Market Capitalization (Bt mil)
Share Capital (mil.shares)
4.1
83,340
2,179
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.
39Source: Factset as of 30 December 2011.
AppendixAppendix
Details of BorrowingsTenor 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
Borrowing Type
Term Loan 3.5 1M-THBFIX + 1.05% Amortising Jun 2014 1,500 Term Loan 3.8 THBFIX + 1.20% 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 % p ,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 3M-THBFIX + 1.15% Bullet May 2012 500 Unsecured Bond 5.0 3.95% Bullet Nov 2015 500 Unsecured Bond 5 0 3 96% Bullet Feb 2016 500Unsecured 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 MLR-2.00% Amortising Nov 2017 1,000 j (g p y ) g ,Project Finance (grace period of 2 years) 7.0 4.50% Amortising Sep 2015 1,125 Project Finance (grace period of 2 years) 7.0 MLR-1.75% Amortising Dec 2015 800 Project Finance (grace period of 2 years) 7.0 MLR-2.125% Amortising Aug 2018 1,700
Total Borrowings 25,245 Less Cash and Current Investments 945
Net Borrowings 24 300
41Source: Company data as of 31 December 2011.
Net Borrowings 24,300
Balance Sheet
Dec 2010
( d)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%
p ( ) g
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%Total equities 18,918 20,448 8%
42
Income Statement
4Q10 3Q11 4Q11 % YoY % QoQ FY2010 FY2011 % YoY
(R d) Ch Ch (R d) ChConsolidated earnings (MB)
(Restated) Change Change (Restated) Change
Revenues from rental 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%)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 profit 818 619 914 12% 48% 2,074 2,807 35%
Net profit 622 389 692 11% 78% 1 125 2 058 83% Net profit 622 389 692 11% 78% 1,125 2,058 83%
Net profit excluding non‐recurring items 555 389 505 (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