Central Pattana Plc. Property Development and Investment - PowerPoint PPT Presentation

Central Pattana Plc. Property Development and Investment CentralPlaza Marina Pattaya Relaunch on 19 December 2016 Analyst Briefing: 3Q16 Performance Review 18 November 2016

3Q16 Performance Overview 30 93 % 1.6 mn sqm 15% 29% YoY Shopping Malls NLA Occ. Rate Rev. Growth Profit Growth 3Q16 Financial Highlight Key Drivers • 12%YoY growth of international tourist arrivals during 9M16 (THB mn) 3Q16 3Q15 %YoY 2Q16 %QoQ • Revenues 7,319 6,372 15% 7,199 2% Government stimulus packages • Four new malls launched in 2015 and one in 2016 Operating profits 2,725 2,173 25% 2,732 0% • Asset Enhancement: CentralPlaza Bangna & CentralPlaza Net Profit 2,342 1,816 29% 2,293 2% Marina Pattaya Renovation GP Margin (%) 49.3% 46.6% 49.0% • Effective space utilization: promotion area, convention halls, EBITDA Margin (%) 54.7% 52.2% 55.2% and on-site media Net D:E (time) 0.33 0.45 0.38 • Continued implementation of cost efficiency program CPN is recognized in the 30th DJSI Emerging Markets for 3 consecutive years. opened on 28 July 2016 2

Lifestyle Innovation 3

Lifestyle Innovation 4

New Brands – F&B Kyo Chon (CentralPlaza WestGate) EASY RIBS & WINGS (CentralPlaza WestGate) Let‟s Chick (CentralPlaza WestGate) 5

New Brands – Fashion MICHAEL KORS (CentralWorld) (CentralFestival EastVille) Innisfree (CentralWorld) 6

Events 7

Operational Performance 8

Leasable Area and Occupancy Land NLA (2) (mn sqm) Occupancy Rate (%) Retail No. of Property Projects Freehold & Dept. Freehold Leasehold Retail Total 3Q15 2Q16 3Q16 Leasehold Store BMA 13 4 7 2 0.67 0.06 0.74 91 94 94 Provinces 17 13 4 0 0.62 0.05 0.67 92 92 92 Total (1) 30 17 11 2 1.29 0.12 1.41 93 93 93 Breakdown: NLA Breakdown: rental income Provinces Provinces BMA 48% BMA 40% 52% 60% Occupancy Rate (%) Non-core Properties No. of Projects NLA or No. of Units 3Q15 2Q16 3Q16 Office in BMA (2) 5 55,315 sqm 96 96 96 1 1,568 sqm Residential in BMA 30 37 37 2 Hotel in provincial area 561 rooms 74 82 88 (1) Excludes area transferred to CPNRF and CPNCG 9 9 (2) Excludes rental agreements < 1 year, such as kiosk, carts, ATMs and coin machines.

Rental Contracts Type & Upside Upside from expirations of long-term lease contracts converted into short term contracts at market rental rate should help increase revenues. Potential higher revenue Reliable contract structure Types of rental contract (1) % of expired area to total long-term lease area (2) Fixed Rent Consignment ≥'21 26 31 47% 36% (48%) (34%) '20 17 '19 4 12 '18 3 '17 3 Long-term Lease FY2016 3 PKO 17% (18%) % - 20 40 60 Retail shops Department Stores in Acquired Projects Source: Company estimate as of 30 September 2016. 10 10 (1) Percentage based on occupied area. (%) 3Q15 figure (2) Total long-term lease area is 163,157 sq.m. with less than 4% rental income contribution.

New Mall Expansion 11

Property Locations Shopping Centers (13 BMA, 17 Provinces) Offices (7) Existing Projects (30) Hotels (2) 1 (BMA) Residence (1) 23 (11 BMA, 12 Provinces) 6 ( 1 BMA, 5 Provinces) Chaengwattana Ramindra WestGate Ladprao Bangkok Rattanathibet EastVille Metropolitan Area (BMA) Salaya Grand Rama 9 Pinklao Bangna Rama3 Rama2 12 Note: As of September 2016.

30th Opened : 28 JULY 2016 Location: South of Thailand Investment Cost (1) : THB 1.9 bn GFA (2) 125,000 sqm NLA (3) (CPN Only) 26,000 sqm Joint developer (4) : Robinson Department Store Land: 20 acres (51 rais) (Freehold) Parking: 1,400 cars Leasing Progress: ~80% at the opening Note 1: Includes land and construction cost of shopping center and parking building. Excludes Central Department Store or Robinson Department Store, and BUs‟ area. 13 Note 2: All project area including CPN‟s area, Central Department Store or Robinson Department Store, BUs‟ area, and parking building. Note 3: Excludes Central Department Store or Robinson Department Store, BUs‟ area Note 4: 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 .

Domestic expansion continues CentralPlaza Nakhon Ratchasima CentralPlaza Mahachai Investment cost (1) : THB5.00bn Investment cost (1) : TBC GFA (2) : GFA (2) : 355,000 sqm TBC NLA (3) : NLA (3) : 56,000 sqm TBC Joint developer (4) : Central Department Store Joint developer (4) : Robinson Department Store Land Size : 26 acres (65 rais) (Freehold) Land Size : 40 acres (100 rais) (Freehold) Parking : 3,500 cars Parking : TBC 2017 Sep-17 Nov-17 Dec-17 2018 2020 Central Phuket 8 additional projects ′18 - ′ 20 Investment cost (1) : THB6.65bn GFA (2) : 400,000 sqm NLA (3) : 63,000 sqm (BKK:Provinces = 50:50) Joint developer (4) : - Land Size : 22 acres (57 rais) (Leasehold) Parking : 3,000 cars Note 1: Includes land and construction cost of shopping center and parking building. Excludes Central Department Store or Robinson Department Store, and BUs‟ area. 14 14 Note 2: All project area including CPN‟s area, Central Department Store or Robinson Department Store, BUs‟ area, and parking building. Note 3: Excludes Central Department Store or Robinson Department Store, BUs‟ area Note 4: 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 .

Summer Winter Spring Autumn Rainy Overall 15

Market Market Foodpark Beer park Riverwalk 16

International project in Malaysia Central i-City ( 1 ) Investment Cost THB8.3bn I-R&D Sdn Bhd (“IRD”), an I -Berhad wholly-owned subsidiary Joint venture CPN holds 60% stake and IRD holds 40% stake CPN will lead in the development and management of the shopping mall Program: GFA 278,000 sqm NLA 89,700 sqm (including department store) Land size 11 acres (27 rais) (Freehold) Location i-City, Shah Alam, Selangor Darul Ehsan, Malaysia Opening (Tentative) October 2018 Project progress: • 100% completion of Anchor Leasing (Department Store, Supermarket, and Cinema) (1) Includes land and construction cost of shopping center and parking building. 17

Potential expansion in neighboring countries Investment strategy Malaysia Realistic land prices and freehold ownership Joint venture with local partners with focus on retail properties Moderate competition and fragmented market To be a property manager High spending power with customer profile similar to Thailand Completed JV Agreement Vietnam Potential Locations Large population Thailand Low competition with few major players Strong growth in disposable income/low spending power Vietnam Indonesia Malaysia Large population Rapidly growing middle class population with increasing spending power Sophisticated market but strong competition from existing players Indonesia High cost of fund and unrealistic land price with limited infrastructure 18

Asset Enhancement 19

Asset enhancement projects Modernize malls to enhance asset value and draw traffic CentralPlaza Rama 3 4 Projects in 2016 • CentralPlaza Bangna • CentralPlaza Marina Pattaya • CentralFestival Phuket • CentralPlaza Chaengwattana 2017 2016 CentralPlaza Marina Pattaya 5 Projects in 2017 • CentralWorld • CentralPlaza Rama3 • CentralPlaza Rama2 • CentralPlaza Chiangmai Airport • CentralFestival Phuket 20

BANGNA Food Patio 21

CentralPlaza Marina Pattaya To be re-launched on 19 December 2016 with the concept of “Fisherman Village” 22

Mixed Use Development 23

Residential projects in the provinces Value-added condominium projects in key domestic market • maximize value creation from outstanding mall locations ; • 3 key projects in high-growth provinces: Chiangmai, Rayong, and Khonkaen ESCENT Chiangmai 400 Units 26-storey condo 100% pre-sales ESCENT Rayong ESCENT Khonkaen 419 Units 408 Units 25-storey condo 24-storey condo 100% pre-sales 100% pre-sales 24

Looking Ahead 25

Looking ahead • Revenue growth from new projects, asset enhancement, same store rental growth, Financial and space utilization (promotional events, on-site media, and convention halls) • Mixed Use Development:  New shopping mall : CentralPlaza Nakhon Si Thammarat (July 2016)  Enhancement (4) : CentralPlaza Bangna, CentralPlaza Chaengwattana, Investment CentralPlaza Pattaya, and CentralFestival Phuket  Residential (3 condominiums) : ESCENT Chiangmai, Rayong, and Khonkaen • Looking for acquisition opportunities in domestic and overseas markets • New format and new attraction • Cost efficiency improvement • Tenants management Operation • Customers experiences • Space utilization efficiency management • Online social community • Solidify plan for property fund conversion to REIT Funding • Increase DJSI score through programs : CSR - education program, reduction in Carbon Footprint and support community CG & SD economic growth CG Individual Assessment for all staff 26

Additional Capex to drive future growth Capex will continue to focus on core business Capex 2015-2018F (THB bn) FY2015 „16F „17F „18F Under construction 12.00 10.18 8.01 4.20 Enhancement 2.16 3.10 1.42 1.30 Potential 2.79 3.09 3.98 8.23 Total Malls 16.96 16.37 13.41 13.73 Residential 0.01 0.44 1.22 1.55 Total Capex 16.97 16.81 14.63 15.28 Source: Company estimate as of 31 August 2016. 27