ctcorporate pttip resentation: 4q11 fy11 performance...

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.

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 t d l hi t f CPN b i f t hi h ill th t l lt f hi t fCPN 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. Norepresentation, 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 p , p p y p p pdirectly 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.

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


Program


Parking (G.A) 800 cars


Location

Construction Progress

39 rais, Lampang ProvinceNorth of Thailand

20% of construction



CentralPlaza Ubonratchathani

Project Highlights


Program




Location 76 rais, Ubonratchathani Province Northeast of Thailand

Construction Progress Detailed studyConstruction Progress eta ed study



CentralFestival Chiangmai

Project Highlights


Program



Joint- Developer Central Department Store (3)

Location 68 rais, Chiangmai ProvinceNorth of Thailand

Development Progress Detailed studyp g


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


Multi-purposed Hall 4,800 sqm


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

15 000

(Bt.mil) 6-mth closure of CentralWorld

6-mth closure of CentralPlaza Lardprao

9,271

11,755 11,388

12,766

10,000

12,500

15,000 of CentralWorld

8,282

3 176 3 158 3 5503 1125,000

7,500

10,000

3,176 3,158 3,550 2,404

2,991 3,112 2,442 2,620

747 619 728 1,569 2,158 2,292 1,552 1,871 553 389 505

0

2,500

2007 2008 2009 2010 2011 4Q10 3Q11 4Q112007 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

2 4103,000

(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 from

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 Term Loan 3.5 3.14% Amortising Jun 2014 1,500

Borrowing Type

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 1,000Unsecured 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 j (g p y ) g ,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

41Source: Company data as of 31 December 2011.

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

(Restated) Change Change (Restated) Change

Revenues from rental and service 2 674 2 710 3 023 13% 12% 9 822 10 853 10%

Consolidated earnings (MB)

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%)

Hotel operations 53 100 128 142% 28% 157 465 196%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 814 619 914 12% 48% 2,074 2,807 35% p g p , ,

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

ctcorporate pttip resentation: 4q11 fy11 performance...

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