CPN Corporate 2q2017
CPN Corporate 2q2017
CPN Corporate 2q2017
► Our Company
► Growth
► Financing
► Looking ahead
► Appendices
2
Our company
CPN at a Glance
* Includes area transferred to CPNRF and CPNCG, 2Q17 occ. rate was 92%.
3
Our company
Strategic Shareholders
CPN is one of the flagship businesses of the Central Group (Chirathivat Family). As a strong and
supportive shareholder, the Chirathivat family brings to CPN a wealth of retail-related expertise through
the family‟s long record and successful leadership in Thailand‟s dynamic and competitive landscape of
shopping mall developments and department store / specialty store operations.
Chirathivat
Family
27% Local
funds
19%
Free float Foreign
53%
47% funds
74%
Individuals
Central
7%
Group
26%
Strategic Shareholder
CPN‟s strong synergy with the Central Group helps CPN to attract dynamic tenants,
increase people traffic and command higher rents.
Central Group
Central Pattana Public Company Limited (53%)* Central Department Store Group (100%)*
Central Hotel & Resort Group (65%)* Central Food Retail Group (100%)*
Property Developer
& Property Manager
Department Store
Shopping Mall & Category killers
CRG
CMG
6
Our company
Property Locations
Existing Projects (30) Shopping Centers (13 BMA, 17 Provinces) Offices (7)
1 (BMA) Hotels (2)
23 (11 BMA, 12 Provinces) Residence (1)
6 ( 1 BMA, 5 Provinces)
Chaengwattana Ramindra
WestGate Ladprao
Grand Rama 9
Pinklao
Bangna
Rama3
Rama2
7
Note: As of March 2017
Growth
Condominium
15 New projects:
14 Domestic projects 2018: ESCENT Khonkaen 2017:
(BKK:Provinces = 50:50) ESCENT Chiangmai CPNRF Conversion to REIT
1 Overseas project ESCENT Rayong
(i-City in Malaysia)
Target: 3 projects/year
Renovation projects:
2017: CPN: CTW and PKT Other mixed-use projects
CPNRF: RM3, RM2, CMA
2019-2021: 1-3 projects
2018-2021: approx. 2-3 projects/year
8
Growth
Residential 3 6 9 12
Other mixed-use 1 - 3 projects
≥'21 29 32
'18 3
2017 3
PKO Long-term Lease
17%
- 20 40 60 80 %
(17%)
Capex 2016-2020F
Balance sheet and D:E Finance Costs and cost of debt (1)
THB bn THB bn
60 0.9 1.2 5.0
0.82 4.40 4.30
0.8 4.5
50 1.0 3.90
4.0
0.7
3.30
0.8 3.14 3.24 3.04 3.5
40 0.6
0.49 3.0
2.65
0.5
30 0.39 0.6 2.5
0.4
0.29 0.31 2.0
0.28
20 0.3 0.4
1.5
0.2 1.0
10 0.2
0.1 0.5
- 0.0 - 0.0
FY2012 '13 '14 '15 16 2Q17
(1) Cost of debt was derived from interest expenses including interest capitalization for projects under development
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2017
Growth Direction
3. Acquiring land bank both domestic and overseas & seeking for
acquisition opportunities
CPN: CentralWorld
Enhanced Malls
CentralPlaza Rama 3 2 - 3 projects 2 - 3 projects
CPNRF: CentralPlaza Rama 2
CentralPlaza Chiangmai Airport
CentralFestival Phuket 1
Escent Chiangmai, Khonkaen, Escent Chiangmai, Chiangrai,
Condominium
Rayong Nakhon Ratchasima
13
2017
Growth Direction
Innovative
Lifestyle Education
Shopping
Mall
Smart Sustainable Corporate
Digital Development
Solution Growth Governance
Service Resource
Excellence Management
14
Innovative Lifestyle Shopping Malls
New format & concepts
Sky Run - A rooftop jogging track Think Space B2S – “Co-Working Space”
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2017
Growth Direction
CentralFestival Phuket
16
2017
Growth Direction
CentralPhuket
Note 1: Includes land and construction cost of shopping center and parking building. Excludes Central Department Store or Robinson Department Store, and BUs‟ area.
Note 2: Excludes Central Department Store or Robinson Department Store, BUs‟ area 17
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.
2017
Growth Direction
Central i-City
(1)
Investment Cost THB 8.3 bn
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) 4Q18
Project progress:
(1) Includes land and construction cost of shopping center and parking building.
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2017
Growth
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2017
Growth Direction
5 Projects in 2017
4 Projects in 2016
• CentralPlaza Bangna
RAMA 3
• CentralMarina
• CentralFestival Phuket
• CentralPlaza Chaengwattana RAMA 2 CHIANGMAI AIRPORT
2016 2017
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2017
Growth Direction
Renovation Plan:
• Enhance circulation and simplified
navigation
• Re-zone merchandise to suit current
market
• Major anchors & entertainment addition
• Enhance customer experience through
new retail concept design
• Enhance linkage to public
transportation
• Better service & more convenience
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2017
Growth Direction
RAMA 3
Renovation Period: Apr-Dec 17
Investment Cost: THB 1.00 bn
Asset under CPNRF
Renovation Plan:
• Re-zone merchandise to suit
current market
• Enhance customer experience
through new design
• Better service & facility system
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2017
Growth Direction
Residential projects
Value-added condominium projects in key domestic market
• maximize value creation from outstanding mall locations ;
• The first 3 projects to completed in 2018 : Chiangmai, Rayong, and Khonkaen
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2017
Growth Direction
2017 Guidance:
• Top-line growth +6-8%
Financial • Maintain Gross Margin and EBITDA margin at high level
2018 Guidance:
• Significant top-line growth 20-25%
• The Cabinet approved a tax waiver for PFPO-REIT conversion on 27 October 2015
to encourage the conversion to REIT. This waiver will expire on 31 December 2017.
Tax waiver Transaction Cost Previous tax scheme New proposed tax scheme
(till 31 Dec 2017)
for Lease Registration Fee: 1.0% of lease value 0.01%
Leasehold (not exceeding THB 100,000)
PFPO-REIT
Stamp Duty: Leasehold 0.1% of lease value Waived
conversion
VAT: Leasehold & Freehold 7.0% of asset value Waived
25
2017
Growth Direction
Gearing 10% of NAV 35% of total assets and 60% of total assets if
rated as an investment grade
Investment • Limited types of income-generating • Real properties both in Thailand and offshore
properties in Thailand (retail, warehouse, with total value not less than THB 500 mn
office, hotel and service apartment) • Can invest in asset under development with
• Can only invest in property with >80% investment needed to complete not more than
construction completion of 10% of NAV
Debt financing at IPO Not allowed Allowed
Role of sponsor As a major unitholder plays a passive role on Can take REIT Manager role and actively manage
fund management REIT for the best benefit for unitholders
Tax on dividends
Differences Property Fund REIT
Thai Retail 10% withholding tax 10% withholding tax
Thai Listed co. 100% of corporate income tax is waived(1) Combine with net income towards corporate
Thai Limited co. 50% of corporate income tax is waived(1) income tax (20%)
Timeline
CPNRF Aug Sep - Nov Dec CPNREIT
Transferred Assets
CPNRF EGM
1. CentralPlaza Rama 2
28 August 2017
2. CentralPlaza Rama 3
SEC Process
3. CentralPlaza Pinklao
(90 days + 30 days)
4. CentralPlaza Chiangmai Airport
REIT Conversion
Additional Assets
with new asset
acquisition and 1. CentralFestival Pattaya Beach (partial)
PFPO liquidation 2. Hilton Pattaya Hotel
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Disclaimer
The information contained in this presentation is for information purposes only and does not constitute an offer or invitation to sell or the
solicitation of an offer or invitation to purchase or subscribe for share in Central Pattana Public Company Limited (“CPN” and shares in
CPN, “shares”) in any jurisdiction nor should it or any part of it form the basis of, or be relied upon in any connection with, any contract or
commitment whatsoever.
This presentation may include information which is forward-looking in nature. Forward-looking information involve known and unknown
risks, uncertainties and other factors which may impact on the actual outcomes, including economic conditions in the markets in which CPN
operates and general achievement of CPN business forecasts, which will cause the actual results, performance or achievements of CPN to
differ, perhaps materially, from the results, performance or achievements expressed or implied in this presentation.
This presentation has been prepared by the CPN. The information in this presentation has not been independently verified. No
representation, warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or
correctness of the information and opinions in this presentation. None of the CPN or any of its agents or advisers, or any of their respective
affiliates, advisers or representatives, shall have any liability (in negligence or otherwise) for any loss howsoever arising from any use of this
presentation or its contents or otherwise arising in connection with this presentation.
This presentation is made, furnished and distributed for information purposes only. No part of this presentation shall be relied upon directly
or indirectly for any investment decision-making or for any other purposes.
This presentation and all other information, materials or documents provided in connection therewith, shall not, either in whole or in part, be
reproduced, redistributed or made available to any other person, save in strict compliance with all applicable laws.
Note: All currency figures within this presentation are presented in Thai Baht unless otherwise stated.
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Appendices
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Strong Development & Acquisition Pipeline
1980s 1990s 2000s 2010-2016
2000 CentralPlaza Chiangmai Airport 2004 The Offices at CentralWorld 2013 CentralPlaza Bangna
Phase 2A
2006 CentralWorld 2015 CentralPlaza Pinklao
Province (1) Province (1)
2003 CentralPlaza Chiangmai Airport 2012 CentralPlaza Udonthani (Phase 2)
Phase 2B
• Resilient Same Store Revenue Growth of 3.4% GP Margin (%) 50.1% 52.0% -1.9% 49.0% 1.1%
• Effective space utilization: promotion area, convention halls, EBITDA Margin (%) 54.5% 58.3% -3.8% 55.2% -0.7%
and on-site media
Net D:E (time) 0.31x 0.21x 0.10x 0.38x -0.07x
• Cost efficiency: continual sustained cost saving measures
Dividend payment
CPN is recognized in the DJSI
Dividend: 0.83 Baht per share
Emerging Markets for 3
XD: 10 Mar 2017
consecutive years.
Payment: 19 May 2017
* Includes area transferred to CPNRF and CPNCG, 2Q17 occ. rate was 92%.
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Leasable Area and Occupancy
Land NLA(1)(2) (mn sqm) Occupancy Rate(1)
No. of
Retail Properties Freehold & Department
Projects Freehold Leasehold Retail Total 2Q16 1Q17 2Q17
Leasehold Store
BMA 13 3 7 3 0.68 0.06 0.74 94% 95% 93%
Gross Profit Margin (Exc. Other Income)(%) 47% 48% 48% 49% 49% 51%
EBITDA Margin (%) 52% 53% 53% 54% 56% 56%
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/1 Total revenue includes rental & service, hotel operation, food & beverage, and other incomes, excluding interest income, share of profit from investment.
/2 Excl. CentralPlaza Nakhon Si Thammarat, CentralPlaza Pinklao, CentralWorld, CentralMarina, and CentralPlaza Rama 3
Revenue Breakdown
2Q17 total revenues /1 +6% YoY or THB 421 mn
YoY mainly contributed by
THB mn Rent and services +5% YoY
+ 14% YoY
35,000 35,000 • Full quarter contributed from new mall:
29,234 CentralPlaza Nakhon Si Thammarat, and asset
30,000 30,000 enhancement: CentralPlaza Pinklao,
25,713
25,000 23,668 25,000
CentralPlaza Bangna, and CentralMarina
21,234 • Resilient performance of existing projects such
+6% YoY
20,000 -1% QoQ 20,000 as CentralFastival EastVille, CentralPlaza
WestGate, CentralPlaza Ubonratchathani,
15,000 15,000
CentralPlaza Rayong, CentralPlaza Salaya, and
10,000 7,199 7,719 7,620 10,000 CentralPlaza Suratthani
Hotel +6% YoY
5,000 5,000
• Driven mainly by higher average occupancy
0 0 rate and RevPar of Hilton Pattaya Hotel &
2013 2014 2015 2016 2Q16 1Q17 2Q17 Centara Hotel & Convention Centre Udonthani
F&B sales +15% YoY
• Contributions from new food courts launched in
2016 at CentralPlaza Nakhon Si Thammarat,
2Q17 Revenue breakdown
CentralPlaza Bangna , CentralMarina, and
CentralPlaza Chaengwattana
Office 3% • Strong performances of existing food courts
- Rent from shops
Retail 83% both in Bangkok and provincial malls.
F&B 5%
- Promotion Area
(Events) Hotel 3% Implementing strategic marketing activities:
- Service income Management
• In collaboration with business partners, holding
fee 1%
- Convention Hall promotional campaigns to encourage more
Other income spending from local customers and cater for
- Onsite Media 4%
expanding foreign tourists visiting Thailand.
Note: /1 Includes revenues from residential projects and water & amusement park, and property management fees from CPNRF & CPNCG.
Excludes non-recurring items. 34
Cost Breakdown
2Q17 total costs +3% YoY or THB 112 mn YoY
mainly due to:
(THB mn)
20,000 Cost of Rent and Services +2% YoY
+ 11% YoY
• Increased at a slower pace than the growth of
revenue because of lower security cost and
16,000
14,041 utility cost
12,634
11,616 • On a same-store basis, utility cost decreased
12,000 5% YoY due to lower Ft tariff last year till
10,542 + 3% YoY
+ 3% QoQ 2Q17
8,000 Cost of Hotel Business +5% YoY
3,578 • In line with revenues of hotel business mainly
3,466 3,460
4,000 resulting from effective cost management and
control in both room and F&B segment
0 Cost of F&B +15% YoY
2013 2014 2015 2016 2Q16 1Q17 2Q17 • Increasing operating costs from new and
Retail Office F&B Hotel Others renovated food courts launched in 2016 and
2017. The growth was in line with growth of
F&B sales.
2Q17 Cost breakdown
Advertising
& promotion
Personnel
20%
51%
Depreciation
10%
Others
19%
Note: Excludes non-recurring items.
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Debt Analysis
Outstanding Borrowings THB 19,311 mn Fixed vs. Floating Interest Rate Mix
AA- Credit Rating
Short-term
Long-term
loan
loan
38%
Affirmed “AA-”
17% Floating ratings with “Stable”
22% outlook by TRIS
Rating in 23 June
2016
Fixed
Short-term 78% All borrowings are
Long-term bond
bond denominated in THB
0%
45%
Financing Cost
(THB mn)
1,200 1,057 1,200
6% 6.00%
1,000 813 1,000
5% 5.00%
677
800 4.40% 509
633
4%800 4.00%
4.25%
600 3.89% 3%600 3.00%
3.30% 3.14% 3.24% 3.04%
400 2%400 2.65% 2.00%
166
200 1%200 110 93 1.00%
0 0% - 0.00%
2012 2013 2014 2015 2016 2Q16 1Q17 2Q17
Note: Weighted average interest rate was derived from interest expenses including interest capitalization for projects under development.
37
Capital Structure
CPN‟s net D/E stood at 0.31 times, against its debt covenant of 1.75 times.
70,000 1.40
Cash & current investment Interest bearing debts Equity RS: Net D/E
38
Statement of Financial Position
% Change % Change
Financial Position (THB mn) End of 2Q16 End of 1Q17 End of 2Q17
QoQ YoY
Current assets
Cash and current investments 2,172 3,328 2,205 (34%) 2%
Other current assets 3,339 3,337 4,475 34% 34%
Total current assets 5,511 6,665 6,680 0% 21%
Non-current assets
Investment properties (1) 75,096 77,304 79,073 2% 5%
Leasehold rights 11,182 10,540 10,268 (3%) (8%)
Property & equipment (PP&E) 1,817 1,767 1,734 (2%) (5%)
Total non-current assets 96,088 98,603 101,949 3% 6%
Total assets 101,599 105,269 108,628 3% 7%
Current liabilities 16,229 13,127 18,346 40% 13%
Non-current liabilities 36,977 36,335 35,623 (2%) (4%)
Total liabilities 53,206 49,462 53,969 9% 1%
Total equity 48,393 55,807 54,660 (2%) 13%
(1)
Investment Properties are booked at cost and depreciated with the straight-line basis over the life of the assets. The estimated fair value is 171,530 mn
(THB 167,688mn in December 2016), stated in the disclosure notes to the main financial statement no. 9 under “Investment Properties”. 39
Statement of Comprehensive Income
% Change % Change
Consolidated Earnings (THB mn) 2Q16 1Q17 2Q17
QoQ YoY
40
2016 Awards and Achievement
“Thailand‟s Top Corporate Brand 2016” honored CPN for superior corporate brand
value of THB 141 bn for property development sector for three consecutive years
“Thailand Mice Standard 2016” awarded CPN as a preferred destination for meetings,
incentives, conventions and exhibitions in ASEAN
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Key Trading Statistics and Dividend
Key Metrics THB Key Metrics 2016 2015 2014 2013 2012 2011 2010
Stock Price (THB) (1) 69.25 Dividend (THB/Share) 0.83 0.70 0.65 0.55 0.475 0.37 0.25
Note 1: SetSmart as of 30 June 2017 Note 1: Dividend payout ratio of 25% in 2009 was derived from 40% of normal net profit and 14% of
Note 2: 2Q17 Performance. EPS excluding non-recurring items gain from transferring assets into CPNRF.
Note 3: Market Cap USD 9.14 bn (BOT exchange rate THB 33.98/USD) Note 2: Dividend payout ratio of 33% in 2012 was derived from 40% of normal net profit and 17% of
Note 3: Par split to THB 0.50 per share effective on 7 May 2013
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Operational Performance: CPNRF and CPNCG
In 2Q17, CPN Retail Growth Leasehold Property Fund (“CPNRF”) had four shopping centers and two
office towers. In Sep12, CPN Commercial Growth Leasehold Property Fund (“CPNCG”) was launched
and currently owns one office.
CPNRF and CPNCG are managed by SCB Asset Management, Fund Manager. Their properties are
managed by CPN, Property Manager.
Remaining Life Leasable Area (1) Occupancy Rate (%) (2)
CPNRF Properties
(years) (sq.m.) 2Q16 1Q17 2Q17
Total 218,833 90 89 86
Note 1: Includes rental agreements < 1 year such as kiosk, carts, ATMs and coin machines and CPN acts as the property manager.
Note 2: Percentage based on leasable area. 43
Investor Relations
Address
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