Central Pattana Plc. Property Development and Investment Opportunity Day: FY2016 Performance Review CentralPlaza Rama 3 8 March 2017
FY2016 Performance Overview 30 94 % 1.6 mn sqm 14% 19% YoY Shopping Malls NLA Occ. Rate Rev. Growth Profit* Growth Key Drivers FY2016 Financial Highlight • 8.9%YoY growth of international tourist arrivals (THB mn) FY2016 FY2015 %YoY • Government stimulus packages Revenues 29,234 25,713 14% • Four new malls launched in 2015 and one in 2016 Operating profits 10,814 9,074 19% • Asset Enhancement: CentralPlaza Bangna & CentralMarina Normalized Net Profit 9,244 7,746 19% Renovation GP Margin (%) 50.1% 48.9% • Effective space utilization: promotion area, convention halls, EBITDA Margin (%) 54.4% 52.7% and on-site media Net D:E (time) 0.28 0.39 • Continued implementation of cost efficiency program Dividend payment CPN is recognized in the Dividend: 0.83 Baht per share DJSI Emerging Markets XD: 10 Mar 2017 for 3 consecutive years. Payment: 19 May 2017 (subject to AGM 2017’s approval) *Normalized Net Profit 2
New Shopping Malls in 2015 CentralPlaza Rayong : opened 27 May 2015 CentralPlaza WestGate : opened 28 Aug 2015 CentralFestival EastVille : opened 27 Nov 2015 CentralFestival Phuket : acquired 1 Jun 2015 3
New Shopping Malls in 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. 4 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 .
Our company Asset Enhancement – CentralPlaza Pinklao The Best is Back 5
Asset Enhancement-CentralPlaza Bangna Facilities for Kids & Family Food Patio 6
Asset Enhancement-CentralMarina Re-launched on 19 December 2016 with the concept of “Fisherman Village” 7
Asset Enhancement-CentralMarina Re-launched on 19 December 2016 with the concept of “Fisherman Village” 8
Asset Enhancement-CentralPlaza Chaengwattana New Food Patio and Food Destination Zone 9
Effective Space Utilization Marketing event & Signature event 10
Operational Performance 11
Leasable Area and Occupancy NLA (2) (mn sqm) Land Occupancy Rate (%) Retail No. of Freehold & Dept. Property Projects Freehold Leasehold Retail Total 4Q15 3Q16 4Q16 Leasehold Store BMA 13 3 7 3 0.68 0.06 0.74 94 94 95 Provinces 17 11 4 2 0.62 0.05 0.67 94 92 94 Total (1) 30 14 11 5 1.30 0.12 1.42 94 93 94 Breakdown: NLA Breakdown: rental income Provinces Provinces BMA 48% 42% BMA 52% 58% Occupancy Rate (%) Non-core Properties No. of Projects NLA or No. of Units 4Q15 3Q16 4Q16 Office in BMA (2) 5 55,315 sqm 97 96 96 1 1,568 sqm Residential in BMA 30 37 21 2 Hotel in provincial area 561 rooms 76 88 83 (1) Excludes area transferred to CPNRF and CPNCG 12 12 (2) Excludes rental agreements < 1 year, such as kiosk, carts, ATMs and coin machines.
Growth 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%) '20 (34%) 17 '19 4 12 '18 3 '17 3 FY2016 3 Long-term Lease PKO 17% (18%) % - 20 40 60 Retail shops Department Stores in Acquired Projects Source: Company estimate as of 31 December 2016. (1) Percentage based on occupied area. 13 13 (%) 4Q15 figure (2) Total long-term lease area is 163,157 sq.m. with less than 4% rental income contribution.
New Mall Expansion 14
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 15 Note: As of September 2016.
Growth Domestic expansion continues CentralPlaza Nakhon Ratchasima CentralPlaza Mahachai Investment cost (1) : THB5.00bn Investment cost (1) : THB3.20bn NLA (2) : NLA (2) : 56,000 sqm 28,850 sqm BANGKOK Joint developer (3) : Central Department Store Joint developer (3) : Robinson Department Store Land Size : 26 acres (65 rais) (Freehold) Land Size : 40 acres (100 rais) (Freehold) MAHACHAI Parking : 3,500 cars Parking : 1,500 cars 2017 Sep-17 Nov-17 2018 2021 Dec-17 Central Phuket Investment cost (1) : THB6.65bn 11 NLA (2) : additional projects ′18 - ′ 21 63,000 sqm Joint developer (3) : - (BKK:Provinces = 50:50) 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. 16 16 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 .
Growth 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
Growth Potential expansion in neighboring countries Malaysia Investment strategy √ 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 Completed JV Agreement Thailand 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
Growth 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 5 Projects in 2017 • CentralWorld • CentralPlaza Rama3 • CentralPlaza Rama2 • CentralPlaza Chiangmai Airport • CentralFestival Phuket 20
Growth Asset enhancement in 2017 RAMA 3 Renovation Period: 4Q16 – 1Q18 Renovation Period: TBA Investment Cost: THB 2.00 bn Investment Cost: THB 1.00 bn • Enhance circulation and simplified navigation • Re-zone merchandise & create new retail concepts to suit current target market (new magnets) • Enhance customer experience through new design • Enhance facilities to improve customer services such as Skywalk & basement parking improvements 21
Asset Enhancement in 2017 - CentralFestival Phuket New Food Destination Zone will be finished in 2Q17 22
Mixed Use Development 24
Growth Residential projects 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 • To be completed in 2018 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
Growth Residential projects Value-added condominium projects in key domestic market • 3 new projects : Chiangmai, Chiangrai, and Nakhon Ratchasima ESCENT Chiangmai 470 Units 8-storey condo ESCENT Nakhon Ratchasima ESCENT Chiangrai 380 Units 312 Units 21-storey condo 8-storey condo 25
Looking Ahead 27
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