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

Siam Future Development PLC Siam Future Development PLC

As of 31 Oct 08

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Content

Company & Business Overview Project Operations & Development Financial Summary

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Company & Business Overview

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1994: Founded by two former Siam Cement Group engineer with 10 million Baht registered capital 1995: Open 1st neighborhood shopping center 1997: Increase registered capital to 20 mil. Baht 2002: Listed on Stock Exchange of Thailand (SET) with registered capital

• f 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

Company Overview

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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

(market price = 3.18 baht/share, 6-Nov-08)

(us$ 47 million)

* GLA stands for gross leasable area

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Suttapong group 9.4% Witoonchart group 15.5% Jantaraprapa group 6.3% Others 14% Management 31% Foreigner 34% Major Cineplex Group PLC. 21%

Shareholding Structure

As of 31 Oct 2008

• No. of shares: 513,147,913

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Company Overview

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

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Business Overview

TOTAL Rental Space 238,864 sq.m.

31 %

74,116 sq.m.

62 %

147,469 sq.m.

7 %

17,279 sq.m.

Retail Real Estate

Convenience Center Neighborhood Center Stand-Alone Retail Store Lifestyle center Power Center Urban Entertainment Center

As of 31 October 2008

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2008 Definition Size Location Number GLA (sq.m.)

Stand-Alone Retail Store

A specialty store such as automobile workshop. 200-500 sq.m. Around Central Business District Urban but not Central Business District Suburban 2,906 8 4 8

Convenience Center

A center of small shops and stores dedicated to customers making a quick stop, commonly anchored by a convenience store. 500-1,000 sq.m. 2,943

Neighborhood Center

A center providing convenience goods and personal services which has a supermarket as an anchor tenant. 5,000- 10,000 sq.m. 39,473

“SF creates and applies these concept to suit customers’ demand.”

1 2 3

Shopping Center Concepts

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2008 Definition Size Location Number GLA (sq.m)

Lifestyle Center

An open-air shopping center

• ffering the finest of national

specialty shops and restaurants. A shopping experience geared toward today’s busy lifestyle. 5,000- 25,000 sq.m Urban but not central business district Suburban Urban central business district 72,165 5 4 1

Power Center

A super community center comprised of super anchor stores and small shops. 25,000 sq.m.+ 77,213

Urban Entertainment Center

A combination of entertainment complex and retailers catered to consumers desiring for amusement experiences and leisure spending. 25,000 sq.m. + 44,164

“SF creates and applies these concept to suit customers’ demand.”

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Shopping Center Concepts

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

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

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

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Fundamental Skills

Good location selection with easy accessibility and ample parking Well conceived and designed retail format Strong tenant relationships

Efficient Operations

Comprehensive Feasibility Study Experienced project management Efficient cost control Rapid construction

Good Financial

Secure upfront tenant Pre/Post opening cash flow Effective management of debt leverage Timely payment to third parties

Loyal tenants and shoppers

Management

Critical Success Factors

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Projects Operation & Development

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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.

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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%

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GLA increase from 2007 around 19,000 sq.m. 2006 2007 2008(F)

• No. of

centers GLA* (sq.m.)

• No. of

centers GLA* (sq.m.)

• No. of

centers GLA* (sq.m.)

Neighborhood Center 7 34,751 7 35,298 8 39,473 Convenience Center 4 2,943 4 2,943 4 2,943 Automotive Service Workshop 8 2,906 8 2,906 8 2,906 Lifestyle Center 3 36,246 4 57,117 5 72,165 Power Center 3 67,504 4 77,213 4 77,213 Urban Entertainment Center 1 44,164 1 44,164 1 44,164

Total 26 188,514 28 219,641 30 238,864 Shopping Centers Formats

Neighborhood Center 4,175 Nawamin Maket Place Lifestyle Center GLA* (sq.m.) New Projects 15,048 Major Avenue Ratchayothin

* GLA stands for gross leasable area

Our Properties

Under construction Project :

Nawamin City Avenue 26,000 sq.m.

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Gross Leasable Area Summary

30 EXISTING PROJECTS GLA 238,864 SQ.M.

Neighborhood Center 8 Convenience Center 4 Automotive Service Workshop 8 Lifestyle Center 5 Power Center 4 Urban Entertainment Center 1 TOTAL 30

Existing Projects Under construction Projects

Lifestyle Center 1

264,864 sq.m.

PROJECTS UNDERCONSTRUCTION GLA 26,000 SQ.M.

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The Winner of The Innovative Design and Development of a New Project under 150,000

• sq. ft. (13,935 sq. m.)

30th ICSC International Design and Development Awards 2006

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Opening Date: December 2006

Gross leasable area: 44,164 SQ.M.

2006 Project Update:

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Gross leasable area: 22,783 SQ.M.

Opening Date: September 2007

2007 Project Update:

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

2007 Project Update:

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

2008 Project Update:

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Opening Date: May 2008

Gross Leasable Area: 15,048 SQ.M.

2008 Project Update:

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2008 Project Update:

Gross Leasable Area: 26,000 SQ.M.

Opening Date: Q2 2009

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Financial Summary

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Cash Inflow

Anchor Tenant (45% Rental Space)

• Upfront
• Rental Deposit

Other Tenants (55% Rental Space)

• Rental Deposit

Working Capital Bank Loan

≥ 60%

Cash Outflow

Landlord

• upfront

Constructio n Contractor

• Cost

≤ 40%

20% 80%

Financing Model

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34,079 36,972 61,248 219,641238,864 285,000 342,000 532,000 96,837 188,514 95% 99% 97% 97% 95% 95% 95% 95% 95% 95% 100,000 200,000 300,000 400,000 500,000 600,000 2002 2003 2004 2005 2006 2007 2008 2009F 2010F 2011F 92% 93% 94% 95% 96% 97% 98% 99% 100% Total GLA Occupancy Rate

Sq.m. Occupancy Rate

20% growth of Gross Leasable Area (approx. 50,000 – 70,000 sq.m. per year)

% Growth

8 % 71 % 53 % 95 % 17% 9% 20% 20% 56%

Expansion Plan

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138 169 622 475 1,674 1,590 51 46 423 155 663 556 34 36 210 108 405 308

200 400 600 800 1,000 1,200 1,400 1,600 1,800 2002 2003 2004 2005 2006 2007 Total revenue EBIT Net Profit

Bt mil Growth 2003 2004 2005 2006 2007

• 24%
• 5%
• 16%
• 24%
• 63%

Total revenue 23% 268%

• 49%

265% 328% 280% EBIT

• 9%

811% Net profit 6% 488%

Our Performance

31 872 479 322 213 142 98

188,514 219,641 36,972 34,079 61,248 96,837

200 400 600 800 1,000 2002 2003 2004 2005 2006 2007 50,000 100,000 150,000 200,000 250,000

Recurring Income GLA

Bt mil

Growth 2003 2004 2005 2006 2007

51% 82% 17% Recurring Income* 45% 50% 53% 49% 95% GLA 8% 71%

* Recurring Income = Rental & Service Income + Other Income

Recurring Income VS GLA

Sq.m.

32 Bond 64% Long-t erm Loan 36%

Weighted Average Interest Rate = 5.6%

• 5 - year debenture
• Outstanding: 500 MB
• Rating: BBB+
• Expired: 20 April 2010
• Coupon: 5.20%
• 3 - year debenture
• Outstanding: 940 MB
• Rating: BBB+
• Expired: 14 Aug 2010
• Coupon: 4.98%
• Maximum 5 years
• Interest rate = MLR -0.5%

Debt Analysis

As of 30 Sep 08

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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 1.01 44% 178.13 0.35 1.00 508.94

2006

2.92 42% 127.95 0.25 1.00 508.94

2007

40% 60% 75% 52% Dividend Payout Ratio 424.12 403.62 237.50 71 Number of Shares (million shares) 42.41 126.61 26.93 17.75 Dividend Paid (Million Baht) 4.46 1.08 1.08 n/a Dividend Yield (%) 1.00 1.00 1.00 1.00 Par Value (Baht) 0.10 0.30 0.10 0.25 Dividend (Baht/share)

2005 2004 2003 2002 Dividend Summary

Share and Dividend

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Supplementary

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Numbers of Thailand’s Stores

2001 2002 2003 2004 2005 2006 2007

Supermarket 97 106 114 120 123 140 172 105 4,141 Hypermarket 97 112 124 133 162 151 218 105 6,024 Category killers 41 48 22 64 65 Convenience stores 1,855 2,162 2,460 3,025 3,413

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Retail Market Supply

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Thailand’s Major Supermarket: 2006-2007

Rank Name Origin No of Stores 2006 No of Stores 2007

1 Tesco Lotus UK 71 94 55 42 27 218 2 BigC France 49 4 Carrefour France 23 3 Makro Netherlands 29 172

Rank Name Origin No of Stores 2006 No of Stores 2007

1 Tops Thailand 94 92 2 Villa Market Thailand 12 13 3 Food Land Thailand 9 9 4 Jusco Japan 6 9 5 Others 19 28 151 140

Thailand’s Major Hypermarket: 2006-2007