CENTER OF LIFE Non-deal Roadshow with Krungsri Securities Tokyo, Japan 21 Nov 2018 Central Pattana Public Company Limited
Agenda Topics of Discussion Company Overview CPN Strategy 2018-2022 Business Update & Guidance GLAND Acquisition Prepared by CPN Investor Relations Company Overview Page 2
CPN at a Glance The largest mixed-use property developer in Thailand 11 th 1.7 m 92 % 5 Largest PCL Total Net Leasable Average Consecutive years in Thailand* Area (NLA)** Occupancy Rate** member on DJSI (2014-2018) “To be the most admired and dynamic regional retail property developer with world-class experience ” 33 Strategic Investments Mixed-use Properties Under Management Iconic Shopping Centers 10 Office High quality commercial properties buildings next to shopping malls 27% 8 Retail, Office and 8 Residences Contemporary living solution within Hospitality Projects for sale the proximity of mall area 2 Hotels Leading hospitality units for locals 25% and tourists next to shopping mall 1 The Offices at Residence Reputable serviced housing next to CentralWorld for rent CentralPlaza Bangna * Market capitalization as of 31 October 2018 ** Includes areas owned by CPN and CPNREIT for a total of 32 shopping malls as 2Q18; Includes 4 operating assets managed by GLAND (3 offices, 1 residential) Prepared by CPN Investor Relations Company Overview Page 3
CPN Shareholding Structure Strong support from major shareholders: The Central Group Central Group, the leader of retail industry in …brings forth a collective haven in retail Thailand, as the main pillar of CPN… and commerce solutions to the market Local Institutions/ Department Marketing Retail/Others Store 1 Central 16% Group 26% Dev & Mgt Property Hotel & Resort 1 4,488 Foreign 31 million shares Institutional Restaurant Food Retail % Group 1 Group Investors Chirathivat 27% Family B2B Market Specialty 1 Hardline Group Market Capitalization (MTHB) 354,552 Share Price (THB/share) 79.00 Group VN Note: Other listed entities (% held by Central Group) include 1.) Robinson Department Store (62%) 2.) Central Plaza Hotel (65%) and 3.) COL Group (50%) Source: Thailand Securities Depository (TSD) as of 30 June 2018 ; share price and market capitalization as of 31 October 2018 Prepared by CPN Investor Relations Company Overview Page 4
Development & Management Structure Viable structure to maximize economic value Joint-Developer Area CPN Developed & Managed Area Comprises Central Group Comprises anchor and dept. store and BUs assorted tenants Shares cost of landscaping Standard contractual and and surrounding facilities pricing terms CRG & Third Party Invests in its own assets where Includes common area 12% 88% CMG Tenants CPN is not a beneficiary Note: CRG = Central Restaurant Group ; CMG = Central Marketing Group Prepared by CPN Investor Relations Company Overview Page 5
Where We Operate in Thailand 33 strategic locations to bolster our leadership position BMA UPC N NE E S 25 12 13 4 4 3 2 6 1 5 1 - 1 3 1 1 - 1 - 1 1 Bangkok Metropolitan Area (BMA) As of September 2018 Prepared by CPN Investor Relations Company Overview Page 6
Our Growth Strategy towards 2022 Co-Create the Center of Life “To be a top 5 diversified regional developer” Key Drivers Growth through asset The new living space Diversification and 3-5 projects / year in the pipeline Other international expansion assets Domestic Oversea 2018 Central Phuket Ongoing: study possibility of expansion into Vietnam and other SE Asia countries New Malls 2019- ’22 Central i-City - Malaysia (1Q19) Central Village (3Q19) CentralPlaza Ayutthaya (4Q19) 2-3 new projects / year Ongoing renovation program 2-3 existing projects / year Asset to optimize design, format, tenant mix, thus occ. rate and NLA Enhancement Maintain leadership position as “Center of Life” - Roll out “destination” concepts Organic - Integration of digitalized features to promote O2O Growth interactivity and customer engagement - Space utilization 2018 2022 Prepared by CPN Investor Relations CPN Strategy Page 7
Expanding Net Leasable Area Supported by strong rental contract foundation Total Retail NLA (mil. sq.m.) Robust contract structure with potential 2.6 upside from expiring long-term leases 2.3 Fixed Consign- New 2.2 2.1 Rent ment 2.0 37% 1.9 1.7 1.7 46% 1.8 (36%) (47%) Base 1.4 17% (17%) Long-term Lease 1.0 2017A 2018F 2019F 2020F 2021F 2022F % Long-term lease expiration schedule Number of retail projects operated and managed by CPN 62% Base 30 32 33 36 39 42 33% 35% New 2 1 3 3 3 3 Total 32 33 36 39 42 45 3% 30% 29% Number of mixed-use projects operated and managed by CPN 5% 3% < 1 year 1-3 years > 3 years Resident 1 4 3-5 additional / year Other 1 1 1-3 additional / year Retail Dept Store in Acquired Projects Source: Company estimate as of 31 December 2017 (1) Percentage based on occupied area as of 30 September 2018 at 92%. (%) = 3Q17 figure (2) Total long-term lease area is 154,027 sq.m. with less than 4% rental income contribution. Prepared by CPN Investor Relations CPN Strategy Page 8
Capital Expenditure Plan Mainly focus on expansion of core business (i.e., malls) Unit: billion THB 25 22.4 19.4 19.3 20 17.6 16.0 10.1 1.9 15.0 15 9.8 3.6 10.3 3.4 New Potential 7.1 3.4 4.0 10 7.2 2.4 3.5 Residential 2.4 5.3 6.8 5 3.7 3.6 2.5 New Malls 5.1 3.0 3.0 3.0 2.5 Enhancement 2.1 0 2017A 2018F 2019F 2020F 2021F 2022F Nakhon CentralPhuket Central Village Ratchasima Ayutthaya / Mahachai TH New 2-3 projects / year Malls IN i-City (MY) Chiangrai, Chonburi, CentralWorld, MJ Pattaya Beach* Rama 3* 2-3 projects / year AEI MN Rama 2*, Phuket, Phuket Festival Chiangmai Lardprao Airport* TH = Thailand ; IN = International ; MJ/MN = major/minor enhancement program ; excludes CAPEX for M&A and land lease renewal * Assets under the ownership of CPNREIT, except for CentralFestival Pattaya Beach (renovation work does not include areas transferred to CPNREIT) Prepared by CPN Investor Relations CPN Strategy Page 9
Prudent Financial Management Solid balance sheet amidst business expansion Not only that maintenance CAPEX is …but CPN’s favorable capital structure also adequately covered by internal cash flow… allows to fund new investments Estimated Annual Cash Flow 1 Robust Capital Structure Resilient Debt Maturity Profile 3 Unit: bn THB Unit: bn THB Funding Through… 0.07 0.35 Net D/E (x) 10.7 Unit: bn THB PN/BE 9.7 9.3 8.5 Loan Cash & 4.0 2.1 ~8 Flexible ST Investment Bond Net Debt 2.7 75.5 63.9 6.4 Equity 5.7 5.4 26.2 0.9 ~15 0.5 4.1 ~11 Committed 2017 2017 3Q18 3Q18 <1 Year 1-3 Years >3 Years YE17 3Q18 Avg. Cost 2.81% 3.27% Evenly-spread repayment schedule allows of Debt 2 CPN to manage its cash flow effectively Operating CAPEX without affecting its investment plan and Avg. Loan 2.64 2.33 Cash Flow ability to pay dividend to shareholders Life (Yrs.) CPN’s corporate rating and rating of senior unsecured debentures are rated “AA” with Strong Credit Rating “Stable” outlook by the Thailand Rating and Information Services (TRIS) as of July 2018 (1) FY17 operating cash flow before changes in net working capital (ex. non-recurring). Annual CAPEX based on average forecasted figures during 2018-2022. Flexible CAPEX comprises new potential investments (2) Cost of debt was derived from interest expenses including interest capitalization for projects under development (3) Debt maturity profile based on gross outstanding interest-bearing debt as of 3Q18 Prepared by CPN Investor Relations CPN Strategy Page 10
CPN Strategic Direction Focus areas with emphasis on asset diversification CENTER New Retail Destination Focused Portfolio Management OF LIFE Diversified Assets Operational Excellence Prepared by CPN Investor Relations CPN Strategy Page 11
Enlarge the Asset Base Announced new malls in 2018 - 2019 2018 2019 Open Date 10-Sep-18 Exp. Opening 3Q19 Central Village CentralPhuket Land Type Leasehold Land Type Freehold Investment 1 (THB) Investment 1 (THB) 5.27 bn ~5.00 bn Est. NLA 2 (sq.m.) Est. NLA 2 (sq.m.) ~45,000 ~40,000 Joint Developer 3 Central Exp. Opening 1Q19 Exp. Opening 4Q19 CentralPlaza Central i-City Land Type Freehold Land Type Freehold Investment 1 (THB) Investment 1 (THB) Ayutthaya 8.30 bn TBC Est. NLA 2 (sq.m.) Est. NLA 2 (sq.m.) ~89,000 TBC Joint Investor I-R&D Bhd. Note 1: Includes land and construction cost of shopping center and parking building. Excludes Central Department Store or Robi nson 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. Prepared by CPN Investor Relations Business Update Page 12
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