Centr al Pattana Plc Plc . . Centr al Pattana Pr oper ty - - PowerPoint PPT Presentation
Centr al Pattana Plc Plc . . Centr al Pattana Pr oper ty Development & Investment Pr oper ty Development & Investment Non De al R R oadshow U U. .S S. .A A ( (May May 16 16- - 18 18, , 2007 2007) ) Non De
Non De al Non De al R
R
– U U. .S S. .A A ( (May May 16 16-
18, , 2007 2007) ) Or ganize d by DBS Vic ke r s Or ganize d by DBS Vic ke r s
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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.
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
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.
upon directly or indirectly for any investment decision-making or for any other purposes.
whole or in part, be reproduced, redistributed or made available to any other person, save in strict compliance with all applicable laws.
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Source : Bank of Thailand and NESDB
Economic Overview in 1Q 2007
stagnancy resulted from weakened in domestic demand.
previous forecasted of 4-5%.
0.5%yoy
2.5% yoy.
growth.
by:
beginning of 2007 which could stimulate property sector.
2007 which put less pressure on people purchasing power.
satisfactorily at 19%yoy and 4%yoy, respectively.
arising in 1Q 2007
flows, foreign investors have not applied those measures in practice due to it creates higher cost.
in Bangkok.
to crack down on nominee structure, creating risk to recovery
private investment in 2007 and also sent a misunderstanding unfriendly message to foreign investors.
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Source : Bank of Thailand and NESDB
Retail in 1Q 2007 Expectation for 2007
external factors weighing down the economic recovery, CPN believes that the recovery in the economy, retail sector and consumer confidence will enhance in the
improves.
in 4Q07.
lackluster period mainly due to decline in domestic demand partly evidence as lower consumer confidence and business sentiment index.
lower than a 4%yoy growth in 2006.
growth after staying double digits since the financial crisis.
was approved by the Cabinet on May 8th,07 after being rejected in Mar 07. The draft will be further sent to the Council of State for revision before submitting to the National Legislative Assembly for approval. The first- ever Retail Business Law is purpose to eliminate unfair trade between large-scaled and small retailers. However, the giant retailers urged the government to consider the impact of new law on consumers. Therefore it is likely that retail growth will continue to depress through 2007 amidst the uncertainties.
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Source : CBRE and Company’s estimate New Supply (sqm) 45,000 338,000 220,000 Total Supply (sqm) 3,972,000 4,017,000 4,355,000 4,575,000
Comments
1,928 1,927 1,007 1,007 815 779 1,265 1,275 1,289 1,278 2,059 2,281 4.7% 5.4% 3.5% 5.1%
250 500 750 1,000 1,250 1,500 1,750 2,000 2,250 2,500 2003 2004 2005 2006 3.0% 3.5% 4.0% 4.5% 5.0% 5.5%
Superstores
Malls Vacancy
6.8% 10.8%
Sqm (‘000) Vacancy %
sqm or 5.1% yoy in 2006 and most of new area came from shopping malls, of which leasable area increased by 10.8% yoy. Major supply operational in 2006 includes
decrease from 5.4% in 2005 mainly due to nearly fully
sqm, mostly from shopping mall; JJ Mall (65,000 sqm), ZenWorld@CentralWorld (30,000 sqm), Jaturas Jamjuri
(20,000 sqm), SF Kaset Nawamin (21,000 sqm).
to the steady supply of new retail leaseable area. It is also expected to remain stead in the short-term and may again rise depending on how quickly the country’s economic condition improves.
Retail Supply
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Comments
Office Supply
253,000 sqm to 7.46 mil sqm due to the opening of 9 office buildings:
Exchange Tower).
I Tower, Central Pinklao Tower B, Rasa Tower II, and King Power New Head Office).
increased from 4.8% in 2005 to 7.2% in 2006 due to the new supply. Meanwhile Grade B slightly decreased from 16.4% in 2005 to 16.0% in 2006.
supplies
approximately 200,000sqm are expected to come in 2007 (Grade A:20%, Grade B:80%). The only new grade A building in CBD to be completed will be Athenee Tower on Wireless Rd., anticipated to
than that of 2005 due to the new supply, stagnant economy, and weakened private investment. However due to the continued demand in office space for company establishment and expansion, we expect rental to increase at a moderate pace.
2,117 1,967 2,471 2,376 4,740 4,714 5,243 5,346
10.2% 4.8% 7.2% 13.5% 16.0% 16.4% 20.9% 25.0% 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 5,000 5,500 2003 2004 2005 2006 0.0% 4.0% 8.0% 12.0% 16.0% 20.0% 24.0% 28.0%
Grade A Grade B & C Vacancy - A Vacancy - B&C
Sqm (‘000) Vacancy %
New Supply (sqm) 70,000 25,000 253,000 Total Supply (sqm) 7,115,000 7,185,000 7,210,000 7,463,000
Office Rental Rate
431 506 595 653 483 428 365 311
100 200 300 400 500 600 700 2003 2004 2005 2006
Grade A Grade B + 9.7% + 12.9%
Bt/sqm
Source : CBRE and Company’s estimate
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Highlights Recent Achievements Shareholder’s Value Creation(1)
FORBES Magazine.
Thailand (SET).
Corporate Governance of Thai listed companies.
Thailand with a 28% market share in Bangkok’s mall leaseable area.
towers and 2 apartments in Thailand.
field developments, acquisition & redevelopments and asset enhancement projects.
synergies with its major shareholders, Central Group and Thailand Equity Fund, and unmatched financing capability through its property fund.
USD 1.9bn.
(33%) in Thailand’s largest REIT - CPN Retail Growth Property Fund (Approx. USD 380mn).
51,420 16,802 31,375 49,241
10,000 20,000 30,000 40,000 50,000 60,000 31 Dec 2004 31 Dec 2005 29 Dec 2006 30 Mar 2007 Bt mn
86.7% 56.9% 4.4%
Note 1: Source from SetSmart as of 31 March 2007, CPN price at Bt23.60 per share
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1980 - Established under “Central Plaza Co., Ltd.”
Past Developments (Core Growth) Acquisitions and Redevelopments (Opportunity Growth)
1982 - Opened “Central Plaza Lardprao”, the first integrated shopping complex in Thailand 1993 - Opened “Central Plaza Ramindra” 1995 - Opened “Central Plaza Pinklao” AND “Central Festival Pattaya” 1996 – Acquired full equity stake in “Central Airport Plaza Chiangmai” 1997 - Opened “Central Plaza Ratchada Rama 3” 2001 – Acquired full equity stake in “Central City Bangna” 2000 – Completed “Central Airport Plaza Chiangmai Phase 2A 2002 - Opened “Central Plaza Rama 2”
2002 – Acquired “Centralworld (World Trade Center”, a mix-used complex
2003 – Completed “Central Airport Plaza Chiangmai Phase 2B AND Acquired “Central Plaza Rattanathibet (Formerly Siam Jusco Rattanathibet” 2004 – Completed “The Offices at CentralWorld” 2005 – Completed “Central Plaza Rattanathibet” 2008 - Open “Central Plaza Chaengwattana” 2011 - Open “Central Plaza Rama 9 2006 – Complete “CentralWorld
Future Growth
Throughout its 25 years, CPN not only achieved success in its own green field projects but also success in its acquisition and redevelopment projects
2002 – Acquired “CentralWorld” (Formerly World Trade Center)
CPN Current Portfolio: 10 - Shopping Centers 5 – Office Towers
2009 - Open “Central Pattaya Beach” AND “Central Chonburi” AND “Central KhonKaen”
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CPN is the leading retail property developer and investor in Thailand with approximately 28% market share in Bangkok Metropolitan Area’s mall saleable space
Source : Updated by CPN as of 31 March 2007. Based on NSCB Richard Ellis report 25 February 2002.
Others 16% CPN 28% Future Park Rangsit 10% The Mall Group 14% Siam Piwat 1% MBK 3% Seri Center 4% Fashion Island 5% Siam Paragon 7% Seacon Square 6% Siam Future 6%
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Chirathivat Family 33% Central Holding 27% Other 35% Lombard's Thailand Equity Fund 5%
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. As a strategic investor, Lombard’s Thailand Equity Fund
(1) brings to CPN a wealth of financial
advisory, international shopping center knowledge, corporate governance initiatives and many other business know-how’s.
Note1: Lombard’s Thailand Equity Fund is a US$245 million private equity fund sponsored by Lombard Investments, Inc., headquartered in San Francisco, and the International Finance Corporation ("IFC"), part of the World Bank Group. The fund was formed with the support of the Government of the Kingdom of Thailand in order to make private equity investments in operationally competitive Thai businesses and is managed by MFC Asset Management. Investors in the fund include the IFC, California Public Employees'Retirement System ("CalPERS"), Asian Development Bank, DEG (a member of Germany's KfW Group), the Ministry of Finance of the Government of Thailand, and ten leading Thai banks and other institutions.
As of 9 April 2007
The Central Group 60%
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Owner of Central hotel and resorts and franchisees of fastfood retail chains including KFC, Pizza Hut, Baskin Robbins, Mister Donut, Auntie's Anne Owner and developer of Shopping Centers and Mix- Used Complex Owner of retail chains including Central Department Stores, Robinson Department Stores, ZEN Department Store, Power Buy, Super Sports, B2S, Home-works, Tops Supermarket, Office Depot, etc. Owner of international retail franchisees for;
Elizabeth Aden, Payot...
S'fare, John Henry, Daniel Hechter, Hush Puppies, Jockey, Wrangler, Lee, FCUK, Energy, Miss Sixty...
Guess watch, Casio....
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
Central Hotel (CENTEL) Central Pattana (CPN) Central Retail Corporation (CRC) Central Marketing Group (CMG)
100% 60% 67% 100%
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allow it to expand on a sustainable basis and achieve operational enhancements and success with its synergies with the Central Group of companies.
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 Fund CPN
expansion
dilution
projects with higher return
manager and investor in Thailand with market share of 28% of Bangkok’s mall saleable area
property management teams have ensured continuous success for
designs and functionality to suit customer needs
chains in Thailand
successful brands and store concepts
experienced retail company in Thailand
CPN shopping centers
rental rates than others
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To be the leading retail developer with world-class experience.
To constantly achieve a sustainable growth with maximum satisfaction for all stakeholders.
Core Business Growth Strategy
Develop new shopping centers with multi formats both in country and overseas. Retain and extend the shopper customers. Develop new retail tenants.
Organization Development Strategy
Improve business processes. Provide effective human capital align with company growth. Deploy new management tools and initiatives in organization development.
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Bangkok Metropolitan Area (BMA) Thailand
Existing Properties:
Shopping Centers: 10
1 (BMA)
8 (BMA – 7)
Offices: 5 (BMA)
Pipeline Properties – 3-5 Yrs:
Shopping Centers: 5 (Bangkok Metropolitan Area)
(Province)
Offices: 1 (BMA)
Existing Properties
Chiangmai (Plaza) Lardpro (Plaza) CentralWorld (World) Ramindra (Plaza) Rattanathibet (Plaza) Pinklao (Plaza) Bangna (Plaza) Pattaya Festival (1)
9 6 4 3 2 1 7 10
Rama2 (Plaza)
8
Rama3 (Plaza)
5
Properties in CPNRF New Projects (Land Bank)
Rama 9
Chaeng- wattana
Khon- kaen Pattaya Beach (2) Chonburi
Projects under development
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Note 1: Excluding rental agreements < 1 year, such as kiosk, carts, ATMs and coin machines. Note 2: Percentage based on leaseable area. Note 3: Rama II and Rama III are under CPNRF (CPN acts as the property manager). 99% 90% 92% 149 76,287 Plaza
% LT : ST (1) Total
Shopping Center
World Plaza Plaza Plaza Plaza Festival Plaza Plaza Plaza
Format 29% : 71% 91% 92% 95% 2,934 691,695
67% 81% 88% 391 185,851 97% 99% 99% 343 96,795 98% 99% 99% 310 57,721 96% 99% 99% 535 76,654 97% 96% 98% 328 54,026 100% 100% 96% 144 15,227 99% 98% 98% 302 55,638 94% 76% 89% 62 17,943 100% 100% 99% 370 55,553
1Q06 4Q06 1Q07 Occupancy Rate (2) No.of Tenants 1Q07 (1) Leaseable area (1) (sqm)
Shopping Center
Increased leaseable area after the completion of major renovation in December 2006. Undergoing minor renovation. Completion date in 2Q 2007 (Please see CPNRF) Underwent major renovation, Phase 1 and 2 opened in August and December 2006, respectively.
Comments
Undergoing minor renovation. Completion date in 3Q 2007 (Please see CPNRF) Completion of minor renovation in Dec 2006.
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Note 1: Including retail space. Excluding storage. Note 2: Percentage based on leaseable area. 24% 60% 66% 30 11,335
% LT : ST (1) Total
Office
1% : 99% 83% 89% 91% 254 145,508
82% 90% 92% 94 83,684 99% 97% 97% 27 9,796 97% 92% 92% 56 22,560 99% 100% 100% 47 18,134
1Q06 4Q06 1Q07 Occupancy Rate (2) No.of Tenants 1Q07 (1) Leaseable area (1) (sqm) % LT : ST (1) Total
Residential
0% : 100% 72% 59% 61% 6,373
75% 62% 66% 4,466 65% 57% 48% 1,907
1Q06 4Q06 1Q07 Occupancy Rate (2) Leaseable area (1) (sqm)
Comments
Occupancy rate has continuously increased since the opening in 1Q 2006.
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Note1: Percentage based on leaseable area. Note2: Date as of 31 March 2007.
Short term rent
(up to 3 years) Monthly basis collection
Fixed Rent % of Sales
Cineplex and international brands such as “Mac Donalds, KFC ...”
Long term lease
(up to 20 years) Up-front collection
contract period on straight line basis
Service & Utility fees
monthly basis
71% 29%
Types Revenue recognition
Rental income
Service fee
Utility fee
10% - 30%
27% 73%
6 - 8% p.a.
expires every year
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1,214 1,164 1,040 945 800 850 900 950 1,000 1,050 1,100 1,150 1,200 1,250 2004 2005 2006 1Q 2007 B t per sq m per
Note 1 : Company Estimates. Average retail rental rates after discount.
Average Rental Rates (Retail Space Only)(1)
Average rental rates have steadily increased over the past years. The rental rate increased by 12%yoy in 2006. However, as a result of slowdown economy and lower traffic at CentralWorld after the bomb incidence on New Year’s Eve, effective rental rate in 1Q 2007 (net discount given to selected stores at CentralWorld) grew by 8%yoy.
1 0% 1 2% 4%
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Note 1 : Company Estimates.
Traffic By Properties(1)
ChangeYoY 1Q06/1Q07 (6%) (14%) 7% 36% 5% 178% (25%) (4%) 12% 13%
20,000 40,000 60,000 80,000 100,000 120,000 140,000 160,000 180,000 Lardprao Pinklao Bangna Rama 3 Rama 2 CentralWorld Ram Indra Pattaya ChiangMai Rattanathibet
1Q2006 4Q2006 1Q2007
pe rso n pe r day (ave rage )
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Note1: As of 31 March 2007.
49,619 Opened (Aug 18)
61,036 Opened (Aug 18)
35,139 Existing
Total 145,794 93% 98%
21,243 Opening (Dec 2006)
18,814 Opening (Dec 2006)
Total 40,057 71% 91% Total Project
185,851 88% 96% 2007 Target Occupancy Occupancy Phase 2 Status Phase 1 Area Net Leaseable Area (sqm)
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Zone “E” Eden Zone “F” Forum Zone “A” Atrium Zen Dept Store Zone “B” Beacon Zone “D” Dazzle Zone “C” Central Court
the average of 70,000 visitors per day (the peak was at 100,000 visitors per day) in Dec 06.
visitors per day in 1Q07.
Advertising locally via – Billboards, BTS Plasma, Magazines, TV and Radio. Advertising internationally via – Airport Billboards, In-Flight TV and Magazines. Events and Promotion campaigns all year round. Tourist privileges.
Convention Center will be opened in July 2007. Zen World (Tower) will be completed around end of July 2007. Jewelry Zone, 1st floor in Zone D, will be opened in 3Q07. More F&B outlets, 7th floor in Zone A, will be opened stores in 3Q07. Grand celebration at CentralWorld is planned to launch in late Sep 2007. International Fashion Brand, 1st floor in Zone A, will come in 3Q08.
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Note1: Including land and construction cost
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Project Highlights
Investment Cost (1) 4,500 - 5,000 MB Program
64,000 sqm (Excl. Dept Store)
27,000 sqm
106,000 sqm (3,218 cars)
Location
Suburb of Bangkok (Vicinity where 28 government agencies will be relocated to)
Development Process Status / Time line
Construction Period Sep 2006 to Dec 2008 Progress
Completed
Completed
Leasing
Start March 2007
Central Department Store, B2S Tops Supermarket, SuperSports, PowerBuy, Office Depot SF Cinema, Fitness First
Opening
December 2008
January 2009
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Note1: Including land and construction cost Note 2: Hotel and service apartment under consideration to sub-lease
/2
Project Highlights
Investment Cost (1) 3,500 - 4,000 MB Program
55,000 (Excl. Dept store)
40,000 sqm
66,000 sqm (1,935 cars)
Location
drive east of Bangkok
Development Process Status / Time line
Construction Period Jan 2007 to Apr 2009 Progress
Completed
80% (Completion by June 2007)
Leasing
Start January 2007
Central Department Store, B2S Tops Supermarket, SuperSports, PowerBuy, Food Loft, SFX Cinema, True Fitness
Opening
February 2009
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Note1 : Total investment cost including land and construction cost Note2: Including Central Group’s area (department store and CRC specialty stores)
/2
Khon Kaen
Investment Cost(1) : 1,500 to 2,000 MB Program(2) : Shopping center/Dept. Store - NLA – 66,000sqm : Parking – G.A – 92,716sqm (2,235 cars) Location : Northeastern Thailand Construction Period : 4Q 2007 – 2Q 2009 Progress : Construction permit approved : Designing phase / detailed feasibility study Opening : June 2009
Rama 9
Investment Cost : 3,500 to 4,000 MB Program : Shopping center/Dept. Store – Under study : Parking – Under study Location : Bangkok Construction Period : Tentative 3Q 2008 – 1Q 2011 Progress : Feasibility study
Chonburi
Investment Cost(1) : 1,500 to 2,000 MB Program(2) : Shopping center/Dept. Store - NLA – 55,700sqm : Parking – G.A – 52,500sqm (1,500 cars) Location : 1 hour drive south of Bangkok Construction Period : 3Q 2007 – 2Q 2009 Progress : Construction permit approved : Designing phase / detailed feasibility study Opening : April 2009
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1,000 1,500 1,000
Rama 9
Total
2,200 3,500 2,000 1,500 600
3 New Projects (1)
1,000 500 500 500 500
Enhancement Projects
340 440 60
Chonburi
210 630 230
Khon Kaen
320 1,200 1,400
Pattaya Beach (New)
370 2,200 1,800
Chaengwattana
1,600
CentralWorld (Phase 1 & 2) 2011 2010 2009 2008 2007 Properties
(Bt mil)
Major capital expenditure will be used to develop 8 new projects (8 shopping centers and
1 office) and renovate 5 existing shopping centers.
Financing plan for future expansion includes:
Company estimates Note1: Tentative development projects
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Note: Company estimates at 31 December 2006. Include leaseable area of Rama 2 & 3 which were partially transferred to CPNRF, but still under CPN’s management.
Retail Leaseable Area and Occupancy Rate (Shopping Center Only)
Note1: Including Central Group’s areas (department store and CRC specialty stores). Note 2: Including CentralWorld’s original space.
L e a s e a b l e a r e a g r
t h
5 % i n 5 y e a r s
96% 97% 95% 95% 97% 92% 93% 95% 95% 94% 95% 100,000 200,000 300,000 400,000 500,000 600,000 700,000 800,000 900,000 1,000,000 2001 2002 2003 2004 2005 2006 2007 F 2008 F 2009 F 2010 F 2011 F sqm
50% 55% 60% 65% 70% 75% 80% 85% 90% 95% 100%
% Occupancy
Rama 9 Pattaya Beach Khon Kaen Chonburi Chaengwattana Rattanathibet - additional space CentralWorld - expansion phase Existing area Occupancy rate (%)
(1) (1) (2)
Leaseable area (Sq.m.) 2001 2002 2003 2004 2005 2006 2007 F 2008 F 2009 F 2010 F 2011F Shopping Center 281,623 518,894 598,587 591,007 617,299 684,587 684,587 748,587 925,287 925,287 1,025,287 Office Building 49,833 49,833 49,833 134,099 134,038 145,700 145,700 145,700 171,700 171,700 171,700 Residential 16,825 16,825 16,336 16,336 6,373 6,373 6,373 6,373 6,373 6,373 6,373 Total 348,281 585,552 664,756 741,442 757,710 836,660 836,660 900,660 1,103,360 1,103,360 1,203,360
(2)
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6,158 9,729 6,844 7,292 1,687 1,952 1,059 560 3,295 365 656 3,677 3,413 6,298 3,106 2,590 2,399 4,877 2,187 527 1,685 1,446 1,348 299
2,000 4,000 6,000 8,000 10,000 12,000 2004 2005 2005 Adj. 2006 4Q05 Adj. 4Q06 Bt mil Total revenue EBITDA Operating profit Net profit
(2) **
*
Note1: Total Revenue = Rental & Service Income + Food & Beverage Income + Other Income Note2: EBITDA is calculated by taking operating income and adding back depreciation and excluding interest income. It also includes long-term lease revenue which is a non-cash item Note3: Same store growth 2006 compare with 2005 excludes revenue from Rama2 & Rama3 Same store growth 2005 compare with 2004 excludes revenue from Rama2 & Rama3 in 4Q and The Offices at Centralworld Same store growth 2004 compare with 2003 excludes revenue from Rattanathibet
(1)
Adjusted items in 2005 (unit : Bt mm) Net profit 3,295 Adjusted 1.Gain from CPNRF (2,885) 2.Impairment provision 407 3.Tax of 1.&2. 743 4.Minority interest of 2. (114) Net profit after adjusted 1,446
Note: * Excluding gain from CPNRF of Bt 2,885 mil and impairment provision of Bt 406.6 mil in 2005 performance. (see box above graph) *Excluding gain from CPNRF of Bt 118 mil in 4Q05 performance. (see box above graph)
Adjusted items in Q42005 (unit : Bt mm) Net profit 382 Adjusted 1.Gain from CPNRF (118) 2.Tax of 1. 35 Net profit after adjusted 299
Growth (% Y-o-Y)
2004 2005 2005 Adj.* 2006 4Q06 Y-o-Y
Total revenue (1) 12% 58% 11% 7% 16% EBITDA 13% 103% 10% 8% 61% Operating profit 14% 123% 10% 8% 6% Net profit 13% 144% 7% 17% 22% Same store growth (3) 9% 10% 10% 13% 16%
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1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000
4Q05 4Q06 2005 Adj 2006
Bt mil
7,292 6,844 1,952 1,687
1 6 % 7%
Revenues
Note1: Other Rental = Includes revenue form Residential + Water & Amusement Park Note2: Other income in 2005 excludes gain from financial lease of Rama 2 and Rama 3 to CPNRF
Comments (FY06 vs. FY05)
Retail
Revenue increased by 1% y-o-y. Although Rama 2 and Rama 3 properties were leased
experienced a marginal increase due to higher revenue from relaunching Rattanathibet in Sep 05, relaunching of CentralWorld’s expansion and redevelopment phases and adjustments of co-service rate in Aug 06.
Office
Revenue increased 54% y-o-y. Increase came from higher occupancy rate and higher
rental rates for new contracts signed at The Offices at CentralWorld and new space at Pinklao Tower B.
Food & Beverage
Revenue decreased 6% y-o-y. Decrease came mainly from closure of food court at
Rama 3 in 3Q06 for renovation and ceasing of food court
Other Rental
Revenue decreased 45% y-o-y. Decrease came from conversion of Pinklao Tower B from
residential apartments to office building. Other Income
Revenue increased 39% y-o-y. Increase came mainly from full year book of property
management fee from CPNRF and realized income of
(45%) 33 60 (29%) 5 7 (6%) 397 420 (19%) 92 114 54% 743 482 31% 199 152 1% 5,534 5,460 20% 1,501 1,247 %yoy FY06 FY05 %yoy 4Q06 4Q05 422 586 167 155 (7%) 39% Other income Other rental F&B Office Retail
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500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4Q05 4Q06 2005 Adj 2006 Bt mil
Cost of Rental and Service Comments (FY06 vs. FY05)
(6%) 304 323 (21%) 71 90 23% 560 454 32% 156 118 8% 2,882 2,667 27% 831 656 %yoy FY06 FY05 %yoy 4Q06 4Q05 56 37 13 13 1% (34%) 3,501 3,783 878 1,071
8% 22% Note1: Others in 2005 excludes impairment of land under development.
Office
Cost increased by 23% y-o-y. Increase came from additional cost from Pinklao
Tower B (opened in Mar 06) and higher occupancy at The Offices at CentralWorld.
Retail
Cost increased 8% y-o-y. Increase came from additional depreciation of the
expansion phrase of CentralWorld (opened in Aug 06) and higher cost at Central Plaza Rattanathibet (reopened in Sep 05)
Food & Beverage
Cost decreased 6% y-o-y. Decrease came from the closure of food court at
Rama 3 and CentralWorld and in line with decrease in revenue from F&B.
Others F&B Office Retail
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200 400 600 800 1,000 1,200 4Q05 4Q06 2005 Adj 2006 Bt mil
Selling and Administration Expenses Comments (FY06 vs. FY05)
3% 58 56 25% 15 12 15% 338 294 64% 153 93 20% 450 374 12% 139 124 %yoy FY06 FY05 %yoy 4Q06 4Q05 275 232 90 69 (23%) (16%) 319 375 999 1,078
17% 8%
(1)
Note1: Others in 2005 excludes impairment of land under development.
Others Depreciation Ads&Promo People
Ads & Promo
Expenses increased by 15% y-o-y. Increase came from marketing activities during
and after the opening of CentralWorld’s expansion phrase.
People
Expenses increased 20% y-o-y. Increase came from organization restructuring,
salary base adjustment, and increase in personnel to support business expansion.
Depre- ciation
Expenses increased 3% y-o-y. Increase came from depreciation of incremental
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Note: Inclusion of gain from financial lease of Rama 2 and Rama 3 to CPNRF and impairment of land under development in 2005.
Corporate Performance Business Line Performance
Gross Profit Margin (%)
2004 2005 2005 Adj. 2006 Y-o-Y Chg 4Q05 4Q06 Y-o-Y Chg
Retail 49.2% 51.2% 51.2% 47.9% (3.3%) 47.4% 44.7% (2.7%) Office 16.9% 5.8% 5.8% 24.6% 18.8% 22.1% 21.6% (0.4%) F&B 24.0% 23.1% 23.1% 23.4% 0.3% 21.1% 22.8% 1.8% Other rental 8.9% (10.4%) (10.4%) (12.1%) (1.7%) (85.7%) (160.0%) (74.3%) Key ratios
2004 2005 2005 Adj. 2006 Y-o-Y Chg 4Q05 4Q06 Y-o-Y Chg
Gross profit margin (%) 45.9% 45.5% 45.5% 43.6% (1.9%) 42.3% 40.4% (1.8%) Operating profit margin (%) 35.5% 68.8% 30.2% 33.8% 3.6% 37.2% 27.2% (10.1%) EBITDA margin (%) 50.4% 64.4% 49.5% 49.3% (0.1%) 42.0% 52.8% 10.8% Net profit margin (%) 21.9% 33.7% 21.0% 22.6% 1.7% 20.7% 18.2% (2.5%) ROA 5.0% 10.1% 4.8% 5.0% 0.2% 4.7% 4.3% (0.4%) ROE 15.9% 33.5% 14.7% 14.3% (0.4%) 13.9% 12.4% (1.5%)
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“ CPN’s Policy is to Maintain Net Debt to Equity at Lower Than 1.0 ”
2,279 2,100 6,140 3,690 9,653 11,789 12,574 7,995 11,112 11,041 8,743 7,956 0.6 0.4 0.9 0.7 2,000 4,000 6,000 8,000 10,000 12,000 14,000 2003 2004 2005 2006 Bt mil 0.0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 1.0 D/E (Times) Cash Debt Equity Net Debt to Equity
Key ratios
2004 2005 2005 Adj. 2006 %Y-o-Y Chg 4Q05 4Q06 %Y-o-Y Chg
Net debt to equity (times) 0.9 0.4 0.4 0.6 22.8% 0.4 0.6 54.7% Total debt to equity (times) 2.1 1.8 1.8 1.7 (10.0%) 1.8 1.7 (5.5%) Interest coverage (times) 7.6 5.9 5.9 5.9 2.3% 3.7 9.7 158.9%
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2,000 4,000 6,000 8,000 10,000 12,000 2005 2006 2007 2008 2009 2010 Bt mil Fixed Floating
Outstanding Borrowings Bt 11,112 mil Financing Cost Fixed vs Floating Mix
Weighted Avg. Interest Rate
MLR-1.46% MLR-1.36% MLR-1.37% MLR-1.32% MLR-1.35% MLR-0.5% Floating rate 6.2% 5.6% 5.5% 5.6% 5.4% 4.8% Fixed Rate
11,041 93% 7% 11,112 61% 39% 9,065 56% 44% 8,043 59% 41% 4,720 52% 48% 2,398 29% 71% ST
11% ST
9% LT
44% LT
36% 4.9% 4.9% 5.3% 5.6% 4.9% 5.6%
400 459 544 621 126 158 100 200 300 400 500 600 700 2003 2004 2005 2006 4Q05 4Q06 Bt mil Interest Expense As of 31 December 2006.
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Share Overview Dividend Summary
1.00 22.60 0.77 29.35 3.92 49,241 2,178,816,000 Par Value (Bt) Stock Price (Bt) EPS (Bt/share) – 12M 2006 P/E
(1) (Bt)
P/BV (Bt) Market Capitalization (Bt mil) Share Capital (Shares)
Source: SETSmart as of 31 December 2006. Note1: Earning per share (EPS) based on 2006 EPS of Bt 0.77 per share.
2004 1.00 0.25 545 40% 2005 1.00 0.40 872 26%* 2006 1.00 000.31 675 40% Par Value (BT) Dividend (Bt/share) Dividend Paid (Bt mil) Dividend Payout Ratio
Notes: Dividend policy is paid annually not less than 40% of net profit. : Dividend Yield ~ 2.0% - 2.5% in last 3 years. : 40% of profit excluded extra gain (Bt 530 mil) plus 18% of gain from set up CPNRF(Bt 362 mil).
Share Price Movement
5 10 15 20 25 30 01/03/06 15/2/2006 29/3/2006 19/5/2006 07/04/06 08/17/2006 09/29/2006 13/11/2006 27/12/2006 02/09/07 Close Price (Bt) 5,000 10,000 15,000 20,000 25,000 30,000 Volume ('000 share) Volumes ('000 shares) Close Price (Bt)
A n n u a l g r
t h
5 7 %
1M (3.8%) (8.0%) (11.0%) 3M 17.7% (0.9%) 4.3% 12M 56.9% (4.8%) 1.8% CPN SET Index Property Index
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Bill of Exchange & Promissory Note Unsecured Bond (Mar’04) Unsecured Bond (Mar’ 04) Unsecured Bond (Apr’ 05) Unsecured Bond (Apr’ 05) Unsecured Bond (Jun’ 06) Property Fund Pinklao (Dec’02) Property Fund Pinklao (Dec’02) Property Fund Centralworld (Jun’03) Property Fund Centralworld (Jun’03) Property Fund Bangna (Mar’03) Property Fund Bangna (Mar’03) Project Finance - Chiangmai 2B(Dec’02) Total(Long Term Borrowings & Current Portion) Less Cash Net 239 1,000 1,500 500 500 1,500 759 253 1,974 1,316 929 242 400 11,112 (3,690) 7,422 3-mth fixed deposit rate 5 years, 4.2% 6.8 years, 5.24% 2 years, 3.9% 2 years, 3.8% 3 years, 6.39%, MLR – 1.55% 10 years, MLR-1%, MLR–0.75%(amortising) 10 years, 7% (amortising) 10 years, MLR - 1.25% (amortising) 10 years, 6.125% (amortising) 15 years, 4.75%, MLR-1.25% (amortising) 15 years, 6% (amortising) 7 years, 6.25% (amortising)
Loan Bt mil Terms
TRIS Rating Co., Ltd. has rated the Company’s senior debentures as “A” in May 2006.