Siam Future Development PLC Siam Future Development PLC 2 Project - PDF document

As of 31 Oct 08 Siam Future Development PLC Siam Future Development PLC

2 Project Operations & Development Company & Business Overview Financial Summary Content

3 Company & Business Overview

Company Overview 1994: Founded by two former Siam Cement Group engineer with 10 million Baht registered capital Open 1 st neighborhood shopping center 1995: 1997: Increase registered capital to 20 mil. Baht 2002: Listed on Stock Exchange of Thailand (SET) with registered capital of 150 million Baht 2003: Raise capital to 238 mil. Baht -- Private Placement 25% shares to Major Cineplex 2005: Issue 5-year amortized debentures of 1 billion Baht 2006: Raise capital to 534 mil. Baht by right offering Employee Stock Option Plan (ESOP) 15 mil. Share (Exercise price 6.94 Baht/share) 2007: Issue 3-year bullet debentures of 940 million billion Baht 4

Company Overview � Founded : 1994 � Employee : 70 � Rental space (GLA*): End of 2005 : 96,837 sq.m. End of 2006 : 188,514 sq.m. End of 2007 : 219,641 sq.m. End of 2008 : 238,864sq.m. � Number of Shopping Centers: 2005 : 24 2006 : 26 2007 : 28 2008 : 30 � Market Cap : 1.6 billion baht (us$ 47 million) (market price = 3.18 baht/share, 6-Nov-08) * GLA stands for gross leasable area 5

Shareholding Structure Jantaraprapa Witoonchart group group No. of shares: 513,147,913 6.3% 15.5% Suttapong group 9.4% Major Cineplex Group PLC. 21% Management 31% Foreigner Others 34% 14% As of 31 Oct 2008 6

Company Overview � A young company specializing in retail property development � 95 % occupancy rate for the past 10 years � Strong relationship with anchors and tenants 7

Business Overview TOTAL Rental Space 238,864 sq.m. 31 % 62 % 74,116 sq.m. Retail 147,469 sq.m. Real Estate � Convenience Center � Neighborhood Center � Stand-Alone Retail Store � Lifestyle center 7 % � Power Center � Urban Entertainment 17,279 sq.m. Center As of 31 October 2008 8

Shopping Center Concepts “SF creates and applies these concept to suit customers’ demand.” 2008 Definition Size Location Number GLA (sq.m.) A specialty store such as 200-500 Around 8 2,906 Stand-Alone 1 automobile workshop. sq.m. Central Retail Store Business District A center of small shops and 500-1,000 Urban but 4 2,943 Convenience 2 stores dedicated to customers sq.m. not Central Center making a quick stop, commonly Business anchored by a convenience District store. A center providing convenience 5,000- Suburban 8 39,473 Neighborhood 3 goods and personal services 10,000 Center which has a supermarket as an sq.m. anchor tenant. 9

Shopping Center Concepts “SF creates and applies these concept to suit customers’ demand.” 2008 Definition Size Location Number GLA (sq.m) An open-air shopping center 5,000- Urban but not 5 72,165 4 Lifestyle offering the finest of national 25,000 central specialty shops and restaurants. sq.m business Center A shopping experience geared district toward today’s busy lifestyle. A super community center 25,000 Suburban 4 77,213 Power Center 5 comprised of super anchor sq.m.+ stores and small shops. A combination of entertainment 25,000 Urban central 1 44,164 Urban 6 complex and retailers catered to sq.m. + business Entertainment consumers desiring for district amusement experiences and Center leisure spending. 10

11 Two-level open mall Anchor tenants : Tesco-Lotus Express 1,000 sq.m. 643 sq.m.

12 48,253 sq.m. 43,871 sq.m. center

13 Ratchadalai Theatre, B2S Bookstore, TOPs Market 98,371 sq.m. 44,164 sq.m.

Critical Success Factors Good Financial Fundamental Skills Efficient Operations Management � Good location � Secure upfront � Comprehensive selection with easy tenant Feasibility Study accessibility and � Pre/Post opening � Experienced project ample parking cash flow management � Well conceived and � Effective � Efficient cost control designed retail management of debt � Rapid construction format leverage � Strong tenant � Timely payment to relationships third parties Loyal tenants and shoppers 14

15 Projects Operation & Development

Our Vision Vision Unlike other developers, Siam Future Development creates a place for people and then for commerce. We aim to be number one mid size mall developer in Thailand. 16

Our Strategies � Leasehold only (no freehold) � 50% of rental space lease out before land lease agreement � No exclusive agreement with anchor tenants � Min IRR of 15% and max payback period of 6 years � Min gross profit margin of 30% 17

Our Properties 2006 2007 2008(F) Shopping Centers GLA* No. of GLA* No. of GLA* No. of GLA* New Projects Formats (sq.m.) centers (sq.m.) centers (sq.m.) centers (sq.m.) Neighborhood Neighborhood 7 34,751 7 35,298 8 39,473 Center Center Convenience 4 2,943 4 2,943 4 2,943 Nawamin Maket 4,175 Place Center Automotive 8 2,906 8 2,906 8 2,906 Service Lifestyle Center Workshop Major Avenue 15,048 Lifestyle 3 36,246 4 57,117 5 72,165 Ratchayothin Center Power Center 3 67,504 4 77,213 4 77,213 Under construction Project : Urban 1 44,164 1 44,164 1 44,164 Nawamin City Avenue Entertainment 26,000 sq.m. Center Total 26 188,514 28 219,641 30 238,864 GLA increase from 2007 around 19,000 sq.m. * GLA stands for gross leasable area 18

Gross Leasable Area Summary 30 EXISTING Under construction Existing Projects PROJECTS Projects GLA 238,864 SQ.M. Neighborhood 8 Lifestyle Center 1 Center Convenience 4 Center Automotive Service 8 PROJECTS Workshop UNDERCONSTRUCTION Lifestyle Center 5 GLA 26,000 SQ.M. Power Center 4 Urban 1 264,864 sq.m. Entertainment Center TOTAL 30 19

30th ICSC International Design and Development Awards 2006 The Winner of The Innovative Design and Development of a New Project under 150,000 sq . ft . (13,935 sq . m . ) 20

21 Gross leasable area: 44,164 SQ.M. 2006 Project Update: Opening Date: December 2006

22 2007 Project Update: Gross leasable area: 22,783 SQ.M. Opening Date: September 2007

Gross leasable area: 23 9,996 SQ.M Opening Date: December 2007 2007 Project Update:

24 Gross Leasable Area: 4,175 SQ.M. Opening Date: February 2008 2008 Project Update:

25 Gross Leasable Area: 15,048 SQ.M. 2008 Project Update: Opening Date: May 2008

Opening Date: 26 Q2 2009 Gross Leasable Area: 26,000 SQ.M. 2008 Project Update:

27 Financial Summary

Financing Model Cash Outflow Cash Inflow Landlord Anchor Tenant ≥ 60% - upfront (45% Rental Space) 20% - Upfront - Rental Deposit Other Tenants (55% Rental Space) Constructio n Contractor - Rental Deposit - Cost Working Capital ≤ 40% 80% Bank Loan 28

Expansion Plan � 20% growth of Gross Leasable Area (approx. 50,000 – 70,000 sq.m. per year) Sq.m. Occupancy Rate 600,000 100% 99% 532,000 99% 500,000 98% 400,000 97% 97% 97% 342,000 Total GLA 285,000 300,000 96% Occupancy Rate 219,641238,864 95% 95% 95% 95% 95% 95% 95% 95% 200,000 188,514 94% 100,000 96,837 61,248 93% 34,079 36,972 0 92% 2002 2003 2004 2005 2006 2007 2008 2009F 2010F 2011F % Growth 8 % 71 % 53 % 95 % 17% 9% 20% 20% 56% 29

Our Performance Bt mil 1,674 1,800 1,590 1,600 1,400 1,200 1,000 800 663 622 556 475 600 423 405 308 400 210 169 155 138 108 200 51 46 34 36 0 2002 2003 2004 2005 2006 2007 Total revenue EBIT Net Profit Growth 2003 2004 2005 2006 2007 23% 268% -24% 265% -5% Total revenue -9% 811% -63% 328% -16% EBIT 6% 488% -49% 280% -24% Net profit 30

Recurring Income VS GLA Bt mil Sq.m. 1,000 250,000 219,641 800 200,000 188,514 872 600 150,000 96,837 400 100,000 61,248 479 36,972 200 50,000 34,079 322 142 213 98 0 0 2002 2003 2004 2005 2006 2007 Recurring Income GLA Growth 2003 2004 2005 2006 2007 Recurring 45% 50% 51% 49% 82% Income* 8% 71% 53% 95% 17% GLA * Recurring Income = Rental & Service Income + Other Income 31

Debt Analysis Weighted Average Interest Rate = 5.6% Long-t erm Bond Loan 64% • 5 - year debenture 36% - Outstanding: 500 MB - Rating: BBB+ - Expired: 20 April 2010 - Coupon: 5.20% • 3 - year debenture - Outstanding: 940 MB - Rating: BBB+ - Maximum 5 years - Expired: 14 Aug 2010 - Interest rate = MLR -0.5% - Coupon: 4.98% As of 30 Sep 08 32

Share and Dividend Share Overview Par Value (Baht) 1.00 Share Price (Baht) (6-Nov-08) 3.18 EPS (Y2007) 0.60 P/E Ratio (6-Nov-08) 6.25 Dividend Yield (6-Nov-08) 7.82% Share Capital: (Million Shares) (6-Nov-08) 513 Market Capitalization on 6-Nov-08 : (Million Baht) 1,631.34 : (Million us$) 46.61 Dividend Summary 2002 2003 2004 2005 2006 2007 Number of Shares (million shares) 71 237.50 403.62 424.12 508.94 508.94 Par Value (Baht) 1.00 1.00 1.00 1.00 1.00 1.00 Dividend (Baht/share) 0.25 0.10 0.30 0.10 0.35 0.25 Dividend Paid (Million Baht) 17.75 26.93 126.61 42.41 178.13 127.95 Dividend Payout Ratio 52% 75% 60% 40% 44% 42% Dividend Yield (%) n/a 1.08 1.08 4.46 1.01 2.92 33

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