CENTER OF LIFE CEO Forum Strategic Direction for 2018 CPN HO, Bangkok 16 Jan 2018 Central Pattana Public Company Limited
CPN’s Aspiration “To be a top 5 diversified regional developer” 4 11 th 1.7 m 92% Consecutive years Largest PCL Total Net Leasable Average in Thailand* Area (NLA)** Occupancy Rate*** “To be the most admired and dynamic regional retail property developer with world-class experience ” * Market capitalization as of 29 December 2017 ** Includes areas owned by CPN and CPNREIT *** CPN operated area only Prepared by CPN Investor Relations CPN Strategy Page 2
Our Growth Strategy in 2018-2022 Center of Life Strategy 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 CentralPhuket Central i-City (Malaysia) 1 new mall Ongoing: study possibility of New expansion into SE Asia Malls countries, with Vietnam as a leading prospect 2019- ’22 2-3 new projects / year Ongoing renovation program Asset 2-3 existing projects / year 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 3
Enlarge the Asset Base Maintain growth momentum in domestic market CentralPhuket CentralPlaza Nakhon Ratchasima Exp. Open Date 1H18 Open Date 3-Nov-17 Investment 1 (THB) Investment 1 (THB) ~6.65 bn ~5.00 bn NLA 2 (sq.m.) NLA 2 (sq.m.) ~49,210 ~63,000 Joint developer 3 Central Joint developer 3 Central Land type Leasehold Land type Freehold Where lifestyle meets luxury at one The largest mixed-use project in destination in Phuket Lease Progress ~50% Isan region Occ. Rate ~80% CentralPlaza Mahachai 1 new mall Open Date 23-Nov-17 To be announced in due time Investment 1 (THB) ~3.20 bn NLA 2 (sq.m.) ~25,600 Joint developer 3 Robinson Land type Freehold The best highway destination in up to 11 additional southwest Bangkok Occ. Rate ~85% projects in potential areas in BMA and Upcountry +2 +2 2017 2018 2019 - 2022 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 4
International Expansion Opportunities in regional markets Vietnam – CPN’s next focus area - High growth potential in retail market - Large population - Low competition with few major players - Strong growth in disposable income albeit still with low spending power Indonesia – high potential and risk - Large and rapidly growing population, especially amongst middle class Malaysia – cautiously progressive - Strong competition in sophisticated market - Realistic land prices and minimal restriction - High cost of fund and unrealistic land prices on freehold ownership with underdeveloped infrastructure - Moderate competition with fragmented market - High spending power with consumer profile similar to that of Thailand Prepared by CPN Investor Relations CPN Strategy Page 5
Regional Expansion Update First project in Malaysia Central i-City (i-City, Shah Alam, Selangor Darul Ehsan, Malaysia) THAILAND Project progress: Exp. Open Date 4Q18 Investment 1 (THB) ~8.30 bn 100% completion of Anchor • Kuala Lumpur (KL) Leasing (Department Store, NLA 2 (sq.m.) ~89,000 Supermarket, and Cinema) JV partner I-R&D Sdn Bhd. 3 i-City, Shah Alam Secured fashion anchors and • (30km SW of KL) fitness CPN role in project 60% ownership; operator Land type Freehold Note 1: Includes land and construction cost of shopping center and parking building. Note 2: Includes department store area (Department Store Operator TBA) Note 3: A wholly owned subsidiary of I-Berhad and holds 40% stake in the joint-venture. Prepared by CPN Investor Relations Business Update Page 6
Residential Projects 3-5 projects per year Announced projects in 2016 Announced projects in 2017 (transfer in 2018) (transfer in 2019) Chiangmai Rayong Khonkaen Nakhon Ratchasima Chiangrai Chiangmai (2) VILLE VILLE Pre-sale 100% Pre-sale 100% Pre-sale 100% Pre-sale 100% Pre-sale ~80% Pre-sale ~60% Transfer 1Q18 Transfer 1Q18 Transfer 2Q18 Transfer 3Q19 Transfer 2Q19 Transfer 2Q19 Units 400 Units 419 Units 408 Units 380 Units 312 Units 450 Bldgs. 1 Bldgs. 1 Bldgs. 1 Bldgs. 2 Bldgs. 2 Bldgs. 2 Stories 26 Stories 25 Stories 24 Stories 22/17 Stories 8/8 Stories 8/8 ~2.8 bn ~2.2 bn THB total value THB total value Prepared by CPN Investor Relations Business Update Page 7
2 New Residential Projects in 2018 Diversified housing projects within CPN catchment area Pahol Yothin 34 Condominium Baromrajchonnee Housing Project Near CentralPlaza Lardprao Near CPN Pinklao & Salaya Pre-sale start 3Q18 Sale start 3Q18 Transfer 4Q19 Transfer 4Q18-2019 Type Low-rise condominium Type Single-detached House Prepared by CPN Investor Relations Business Update Page 8
Asset Enhancement Initiatives Continued value-accretive renovation programs Completed in 2017 Completed minor renovation projects 1 CentralPlaza Rama 3 1 “ Kad Luang ” Market 2017 2018 2019 2020 CentralWorld 2 CentralPlaza Chiangrai CentralPlaza Chonburi CentralFestival Pattaya Beach 1 Ongoing since 2017 CentralFestival Phuket Commence in 2018 CentralPlaza Lardprao Note 1: Includes areas under the ownership of CPN and CPNREIT Note 2: CentralWorld resumed normal operation during December 2017 – February 2018 to accommodate the festive season. Hence, renovation work will resume thereafter. Prepared by CPN Investor Relations Business Update Page 9
Sustainability Engagement with stakeholders CUSTOMER ENGAGEMENT Higher Customer Educated Tenants Satisfaction Customers Tenants Tenant and Local SMEs Customer Services Tourists development program Government Services CPN Lead & SME marketplace Cross boarder promotions with oversea partners Customer and tenant experience fulfillment Tenant Relationships Through digitalized engagement Tourist Services Exclusive campaigns and T1C offers Convenience through mobile application Prepared by CPN Investor Relations CPN Strategy Page 10
Sustainability Engagement with stakeholders CUSTOMER ENGAGEMENT Higher Customer Educated Tenants Satisfaction Customers Tenants Tenant and Local SMEs Customer Services Tourists development program Government Services CPN Lead & SME marketplace Cross boarder promotions with oversea partners Customer and tenant experience fulfillment Tenant Relationships Through digitalized engagement Tourist Services Exclusive campaigns and T1C offers Convenience through mobile application Prepared by CPN Investor Relations CPN Strategy Page 11
Expanding Net Leasable Area Supported by strong rental contract foundation Total Retail NLA (mil. sq.m.) 2.6 2.3 2.1 New 2.2 2.0 1.9 1.8 1.7 1.8 Base 1.4 1.0 2017A 2018F 2019F 2020F 2021F 2022F Number of retail projects operated and managed by CPN Base 30 32 35 38 41 44 New 2 3 3 3 3 3 Total Malls 32 35 38 41 44 47 Number of mixed-use projects operated and managed by CPN Resident 1 4 3-5 additional / year Other 1 1 1-3 additional / year Prepared by CPN Investor Relations 5-Year Plan Page 12
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 Ratchasima 1 Unannounced / Mahachai TH New 2-3 projects / year Malls IN i-City (MY) Chiangrai, CentralWorld, Chonburi, MJ Rama 3* Pattaya Beach* 2-3 projects / year AEI MN Rama 2*, Phuket, Phuket Chiangmai Lardprao Airport* Note: Non-core includes investment in mixed-use projects (i.e., residential) TH = Thailand ; IN = International ; MJ/MN = major/minor enhancement program * 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 5-Year Plan Page 13
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