CENTER OF LIFE
CEO Forum
Strategic Direction for 2018 16 Jan 2018
Central Pattana Public Company Limited
OF LIFE CEO Forum Strategic Direction for 2018 CPN HO, Bangkok 16 - - PowerPoint PPT Presentation
CENTER OF LIFE CEO Forum Strategic Direction for 2018 CPN HO, Bangkok 16 Jan 2018 Central Pattana Public Company Limited CPNs Aspiration To be a top 5 diversified regional developer 4 11 th 1.7 m 92% Consecutive years Largest PCL
Central Pattana Public Company Limited
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Prepared by CPN Investor Relations
* Market capitalization as of 29 December 2017 ** Includes areas owned by CPN and CPNREIT *** CPN operated area only
CPN Strategy
“To be the most admired and dynamic regional retail property developer with world-class experience”
Largest PCL in Thailand*
Total Net Leasable Area (NLA)**
Average Occupancy Rate***
Consecutive years
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Prepared by CPN Investor Relations
Organic Growth New Malls Asset Enhancement Other assets
2018 2022 Key Drivers
The new living space 3-5 projects / year in the pipeline Ongoing renovation program 2-3 existing projects / year to optimize design, format, tenant mix, thus occ. rate and NLA Maintain leadership position as “Center of Life”
interactivity and customer engagement
Growth through asset Diversification and international expansion
Domestic Oversea 2018
CentralPhuket 1 new mall Central i-City (Malaysia) Ongoing: study possibility of expansion into SE Asia countries, with Vietnam as a leading prospect
2019-’22
2-3 new projects / year
CPN Strategy
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Prepared by CPN Investor Relations
2017 2018 2019 - 2022
CentralPlaza Nakhon Ratchasima Open Date 3-Nov-17 Investment1 (THB) ~5.00 bn NLA2 (sq.m.) ~49,210 Joint developer3 Central Land type Freehold
~80% CentralPlaza Mahachai Open Date 23-Nov-17 Investment1 (THB) ~3.20 bn NLA2 (sq.m.) ~25,600 Joint developer3 Robinson Land type Freehold
~85%
The largest mixed-use project in Isan region The best highway destination in southwest Bangkok
Note 1: Includes land and construction cost of shopping center and parking building. Excludes Central Department Store or Robinson Department Store, and BUs’ area. Note 2: Excludes Central Department Store or Robinson Department Store, BUs’ area Note 3: Area will be developed and owned by the joint developer. However, the store will serve as a magnet to draw traffic into CPN’s plaza area.
CentralPhuket
1H18 Investment1 (THB) ~6.65 bn NLA2 (sq.m.) ~63,000 Joint developer3 Central Land type Leasehold Lease Progress ~50%
Where lifestyle meets luxury at one destination in Phuket
1 new mall To be announced in due time
up to 11 additional projects in potential areas in BMA and Upcountry
Business Update
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Prepared by CPN Investor Relations
Vietnam – CPN’s next focus area
with low spending power Malaysia – cautiously progressive
market
profile similar to that of Thailand Indonesia – high potential and risk
especially amongst middle class
with underdeveloped infrastructure
CPN Strategy
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Prepared by CPN Investor Relations
Note 1: Includes land and construction cost of shopping center and parking building. Note 2: Includes department store area (Department Store Operator TBA) Note 3: A wholly owned subsidiary of I-Berhad and holds 40% stake in the joint-venture.
Business Update
THAILAND Kuala Lumpur (KL) i-City, Shah Alam (30km SW of KL)
Central i-City (i-City, Shah Alam, Selangor Darul Ehsan, Malaysia)
Project progress:
Leasing (Department Store, Supermarket, and Cinema)
fitness
4Q18 Investment1 (THB) ~8.30 bn NLA2 (sq.m.) ~89,000 JV partner I-R&D Sdn Bhd. 3 CPN role in project 60% ownership; operator Land type Freehold
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Prepared by CPN Investor Relations Business Update
Chiangmai Rayong Khonkaen Pre-sale 100% Pre-sale 100% Pre-sale 100% Transfer 1Q18 Transfer 1Q18 Transfer 2Q18 Units 400 Units 419 Units 408 Bldgs. 1 Bldgs. 1 Bldgs. 1 Stories 26 Stories 25 Stories 24 Nakhon Ratchasima Chiangrai Chiangmai (2) Pre-sale 100% Pre-sale ~80% Pre-sale ~60% Transfer 3Q19 Transfer 2Q19 Transfer 2Q19 Units 380 Units 312 Units 450 Bldgs. 2 Bldgs. 2 Bldgs. 2 Stories 22/17 Stories 8/8 Stories 8/8
VILLE VILLE
Announced projects in 2016 (transfer in 2018) Announced projects in 2017 (transfer in 2019)
THB total value
THB total value
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Pahol Yothin 34 Condominium Baromrajchonnee Housing Project
Near CentralPlaza Lardprao Near CPN Pinklao & Salaya Pre-sale start 3Q18 Sale start 3Q18 Transfer 4Q19 Transfer 4Q18-2019 Type Low-rise condominium Type Single-detached House
Prepared by CPN Investor Relations Business Update
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Prepared by CPN Investor Relations
2017 2018 2019 2020
CentralPlaza Chiangrai CentralPlaza Chonburi CentralWorld2 CentralFestival Pattaya Beach1 CentralFestival Phuket
Completed in 2017
Note 1: Includes areas under the ownership of CPN and CPNREIT Note 2: CentralWorld resumed normal operation during December 2017 – February 2018 to accommodate the festive season. Hence, renovation work will resume thereafter.
Commence in 2018 Ongoing since 2017
CentralPlaza Rama 31 Completed minor renovation projects1 “Kad Luang” Market
Business Update
CentralPlaza Lardprao
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Prepared by CPN Investor Relations Tenant and Local SMEs development program Higher Customer Satisfaction Educated Tenants
Customers Tenants
CPN Lead & SME marketplace
Customer and tenant experience fulfillment Through digitalized engagement
Convenience through mobile application
Customer Services
Government Services
Tourists
Cross boarder promotions with oversea partners Tourist Services
Tenant Relationships
Exclusive campaigns and T1C offers
CUSTOMER ENGAGEMENT
CPN Strategy
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Prepared by CPN Investor Relations Tenant and Local SMEs development program Higher Customer Satisfaction Educated Tenants
Customers Tenants
CPN Lead & SME marketplace
Customer and tenant experience fulfillment Through digitalized engagement
Convenience through mobile application
Customer Services
Government Services
Tourists
Cross boarder promotions with oversea partners Tourist Services
Tenant Relationships
Exclusive campaigns and T1C offers
CUSTOMER ENGAGEMENT
CPN Strategy
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Prepared by CPN Investor Relations
Number of retail projects operated and managed by CPN Base 30 32 35 38 41 44 New 2 3 3 3 3 3 Total Malls 32 35 38 41 44 47 Number of mixed-use projects operated and managed by CPN Resident 1 4 3-5 additional / year Other 1 1 1-3 additional / year
1.0 1.4 1.8 2.2 2.6 2017A 2018F 2019F 2020F 2021F 2022F
Total Retail NLA (mil. sq.m.)
New Base
1.7 1.8 1.9 2.0 2.1 2.3
5-Year Plan
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Prepared by CPN Investor Relations 2.1 5.1 3.0 2.5 3.0 3.0 6.8 7.2 3.7 3.6 5.3 2.5 3.4 3.4 2.4 3.5 4.0 2.4 3.6 1.9 10.3 9.8 10.1 7.1 5 10 15 20 25 2017A 2018F 2019F 2020F 2021F 2022F Enhancement
Unit: billion THB
New Malls Residential New Potential
Note: Non-core includes investment in mixed-use projects (i.e., residential) TH = Thailand ; IN = International ; MJ/MN = major/minor enhancement program * Assets under the ownership of CPNREIT, except for CentralFestival Pattaya Beach (renovation work does not include areas transferred to CPNREIT)
16.0 17.6 19.4 19.3 22.4
5-Year Plan New Malls AEI
Nakhon Ratchasima / Mahachai i-City (MY) 2-3 projects / year Rama 2*, Phuket, Chiangmai Airport* CentralWorld, Rama 3* Phuket Lardprao Chiangrai, Chonburi, Pattaya Beach*
TH IN MJ MN
CentralPhuket 1 Unannounced
15.0
2-3 projects / year
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2018 Key Drivers Revenue Growth
▪ Residential projects (CMI, KKN, RYG) ▪ New malls (NKM, MHC, PKT2, i-City) ▪ Recovered Occ. Rate & ARR ▪ Asset Enhancement ▪ Space Utilization
Gross Profit Margin
Slightly lower
▪ Slight impact from lower margin residential projects ▪ Incremental cost savings initiatives (e.g., utility) ▪ Efficiency improvement through data analytics
CAPEX
bn THB
▪ Operating cash flow of 15-16 bn THB ▪ Debt financing
Net D/E Ratio
▪ Ample debt headroom to fund prudently reviewed investments plan ▪ Remain comfortably below policy level of 1.0x
DJSI Status
5 consecutive years
▪ Increase DJSI score to strengthen position on the index
CG Rating
Average
▪ Maintain high level of CG practice standard with focus on sound business ethics, transparency and anti-corruption commitment Financial Performance Capital Management CG & SD
2018 Guidance
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Disclaimer Prepared by CPN Investor Relations
▪ The information contained in this presentation is for information purposes only and does not constitute an offer or invitation to sell or the solicitation of an offer or invitation to purchase or subscribe for share in Central Pattana Public Company Limited (“CPN” and shares in CPN, “shares”) in any jurisdiction nor should it or any part of it form the basis of, or be relied upon in any connection with, any contract or commitment whatsoever. ▪ This presentation may include information which is forward-looking in nature. Forward-looking information involve known and unknown risks, uncertainties and other factors which may impact on the actual outcomes, including economic conditions in the markets in which CPN operates and general achievement of CPN business forecasts, which will cause the actual results, performance or achievements of CPN to differ, perhaps materially, from the results, performance or achievements expressed or implied in this presentation. ▪ This presentation has been prepared by the CPN. The information in this presentation has not been independently
fairness, accuracy, completeness or correctness of the information and opinions in this presentation. None of the CPN or any of its agents or advisers, or any of their respective affiliates, advisers or representatives, shall have any liability (in negligence or otherwise) for any loss howsoever arising from any use of this presentation or its contents or otherwise arising in connection with this presentation. ▪ This presentation is made, furnished and distributed for information purposes only. No part of this presentation shall be relied upon directly or indirectly for any investment decision-making or for any other purposes. ▪ This presentation and all other information, materials or documents provided in connection therewith, shall not, either in whole or in part, be reproduced, redistributed or made available to any other person, save in strict compliance with all applicable laws.
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Q&A Prepared by CPN Investor Relations
Investor Relations Department Central Pattana Public Company Limited
Central Pattana Public Company Limited 31st Fl, the Offices at CentralWorld 999-9 Rama I Rd., Patumwan District Bangkok 10330 Thailand +662 667 5555
Facsimile: +662 264 5593
ir@cpn.co.th http://www.cpn.co.th