CPN Corporate 2q2017

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Central Pattana Plc.

Property Development and Investment

CentralPlaza Mahachai Corporate Presentation: 2Q17 Performance Review


Contents

► Our Company

► Growth

► Financing

► Looking ahead

► Appendices

2
Our company

CPN at a Glance

VISION To be the most admired and dynamic regional retail property


developer with world-class rewarding experience

Mixed-use Project Development


Malls Other related business Property funds
Residential Commercial Hotel CPNRF CPNCG

7 Office Buildings 2 Hotels


1 1 Residence • Lardprao
Central City Residence • Pinklao Tower A CPNRF:
22 @ Bangna • Pinklao Tower B RM2, RM3, PKO, CMA,
Pinklao Tower A&B
6 • Bangna
• CentralWorld Tower
1 centralmarina • Chaengwattana CPNCG:
• Rama9 The Offices @ CentralWorld

30 1.6 mn sqm 93%* 1st Rank 21%


Shopping Malls NLA CPN Occ. Rate Retail Developer Market Share in BKK

* 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%

Source: TSD as of 30 June 2017


4
Our company

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%)*

Central Restaurant Group (65%)* Central Hardlines Group (100%)*

Central Marketing Group (100%)* Central Online (50%)*

* Percentage held by Central Group 5


Listed Company: CPN, CENTEL (CHi & CRG), ROBINS (Central Department Store Group holds 62%), and COL
Our company

Property Development and Management

Property Developer
& Property Manager
Department Store
Shopping Mall & Category killers

Other Other Other Other


Tenants Tenants Tenants Tenants

CRG

Other Other Other Other


Tenants Tenants Tenants Tenants

CMG

CRG & CMG Other tenants Joint developers


• ~12% of total leasable areas • ~88% of total leasable areas and also in • Sharing cost of land and common
and also in term of total term of total revenue area
revenue • Owning its investment cost and assets
• Pricing criteria as same as
others

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

Bangkok Rattanathibet EastVille

Metropolitan Area (BMA) Salaya

Grand Rama 9
Pinklao

Bangna

Rama3
Rama2

7
Note: As of March 2017
Growth

CPN‟s Growth Aspiration

5 year target : top line growth of 14-15% CAGR for 2017-2021

Mixed-use Project Development


Malls Other related business Property funds

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

Future Leasable Area & Occupancy Rate


Retail NLA Occupancy Rate
(mn sqm) (%)
94 94 94 94 94 94
2.3 100
2.2 90
45
2.1 80
42 70
2.0
39 60
1.9
50
1.8 36
40
1.7
32 30
1.6 20
30
1.5 10
1.4 0
2016F 2017F 2018F 2019F 2020F 2021F

No. of Malls 2016 2017F 2018F 2019F 2020F 2021F


Domestic 30 32 35 38 41 44
Overseas 1 1 1 1
NLA (mn sqm) 1.61 1.69 1.87 1.97 2.08 2.22

Residential 3 6 9 12
Other mixed-use 1 - 3 projects

Source: Company estimate as at 31 May 2017.


Retail space: Includes leasable area of CentralPlaza Rama 2, CentralPlaza Rama 3, CentralPlaza Pinklao, and CentralPlaza Chiangmai Airport, which were 9
partially transferred to CPNRF, but still under CPN’s management.
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.

Reliable contract structure Long-term Lease: Potential higher revenue(2)


Types of rental contract (1)

≥'21 29 32

Fixed Rent Consignment


47% 36% '20 17
(48%) (35%) % of expired area to total
long-term lease area (2)
'19 5 12

'18 3

2017 3
PKO Long-term Lease
17%
- 20 40 60 80 %
(17%)

Retail shops Department Stores in Acquired Projects

Source: Company estimate as of 30 June 2017


(1) Percentage based on occupied area. 10
(%) 2Q16 figure
(2) Total long-term lease area is 158,583 sq.m. with less than 4% rental income contribution.
Financing

Additional CAPEX to drive future growth


Capex will continue to focus on core business

Capex 2016-2020F

(THB bn) FY2016 „17F „18F „19F „20F

Under construction 6.0 8.0 5.8 2.1 0.5


Enhancement 2.7 2.5 2.6 1.9 1.4
Potential 0.0 5.1 4.4 9.1 12.5
Total Malls 8.7 15.6 12.8 13.1 14.4
Residential 0.5 1.7 2.6 3.2 3.5
Total Capex 9.2 17.3 15.5 16.2 17.8

Source: Company estimate as of 30 December 2016.


11
Financing

Solid balance sheet despite expansion

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

Cash&current investment Interest bearing debts


Equity RS: Net D:E Finance Costs RS: Cost of debt

(1) Cost of debt was derived from interest expenses including interest capitalization for projects under development
12
2017
Growth Direction

2017 Strategic Directions


“Smart Development & Sustainable growth toward mixed-use development”
1. Shopping mall business: 2. Mixed-use development
• New malls • Residential development
• Asset Enhancement
SMART • New Formats & Concepts High growth potential in 2018 is
• Space utilization expected, driven by new malls, AEI,
DEVELOPMENT and Residential properties.

3. Acquiring land bank both domestic and overseas & seeking for
acquisition opportunities

2017 2018 2019


CentralPhuket
New Malls CentralPlaza Nakhon Ratchasima 3 projects
Central i-City
CentralPlaza Mahachai 1 - 2 Unannounced Malls

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

2017 Strategic Directions

CPN Shopping Mall = CENTER OF LIFE

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”

Kids Playground Pet Park

15
2017
Growth Direction

CentralFestival Phuket

Food Destination Food Patio Public House

16
2017
Growth Direction

Domestic expansion continues


CentralPlaza Nakhon Ratchasima CentralPlaza Mahachai
Investment cost (1) : THB 5.00 bn Investment cost (1) : THB 3.20 bn
NLA (2) : 56,000 sqm NLA (2) : 28,850 sqm
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)
Parking : 3,500 cars Parking : 1,500 cars
Leasing Progress: 70% Leasing Progress: 77%
BANGKOK
MAHACHAI

2017 Nov -17 Nov-17 2018 1Q18 2021

CentralPhuket

Investment cost (1) : THB 6.65 bn


NLA (2) : 63,000 sqm
Joint developer (3) : - 11 additional projects ′18-′21
Land Size : 22 acres (57 rais) (Leasehold)
Parking : 3,000 cars
(BKK:Provinces = 50:50)
Leasing Progress: TBA

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

International project in Malaysia

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:

• 100% completion of Anchor Leasing


(Department Store, Supermarket,
and Cinema)
• Secured fashion anchors and fitness

(1) Includes land and construction cost of shopping center and parking building.
18
2017
Growth

Potential expansion in neighboring countries


Direction

Investment strategy Malaysia


Joint venture with local partners with focus on retail Realistic land prices and freehold ownership
properties
Moderate competition and fragmented market
To be a property manager
High spending power with customer profile similar to
Completed JV Agreement Thailand

Potential Locations Vietnam


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
Indonesia existing players
High cost of fund and unrealistic land price with limited
infrastructure

19
2017
Growth Direction

Asset enhancement projects


Modernize malls to enhance asset value and draw traffic

5 Projects in 2017

4 Projects in 2016
• CentralPlaza Bangna
RAMA 3
• CentralMarina
• CentralFestival Phuket
• CentralPlaza Chaengwattana RAMA 2 CHIANGMAI AIRPORT

2016 2017

20
2017
Growth Direction

Asset enhancement in 2017

Renovation Period: 4Q16 – 2Q18


Investment Cost: THB 2.00 bn

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

21
2017
Growth Direction

Asset enhancement in 2017

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

22
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

ESCENT Chiangmai ESCENT Rayong


400 Units, 26-storey condo 419 Units, 25-storey condo
100% pre-sales 100% pre-sales
Transfer: 1Q18 ESCENT Khonkaen Transfer: 1Q18
408 Units, 24-storey condo
100% pre-sales
Transfer: 2Q18 New projects launched ESCENT Chiangrai
in 2017, total value of 312 Units
8-storey condo
THB 2 bn Pre-sale: Oct‟17

ESCENT Nakhon Ratchasima ESCENT Chiangmai


380 Units 450 Units
21-storey condo 8-storey condo
Pre-sale: Nov‟17 Pre-sale: Dec‟17

23
2017
Growth Direction

2017 Strategic Directions

• CAPEX ≈ THB 17.0 bn (Operating Cash Flow THB ≈15.0)


• CPNREIT SETUP: Alternative source of funding
Funding • Finished by 4Q17
• New asset injection

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%

• Cost efficiency improvement


• Tenants Management
Operation • Customers Experiences
• Space utilization efficiency management
• Online social community

• Increase DJSI score


• Focus on ESG toward 3 Concentration areas
CG & SD • Education program
• Reduction in Carbon Footprint
• Community centrality
24
2017
Growth Direction

CPNRF conversion into REIT


Objectives and rationales

• Growth potential from ability to invest in additional assets as current regulations


prohibit property funds from any capital increase
Rationales/ • Dividend accretion for existing unitholders
• Diversifying sources of income for unitholders
Benefits
• More flexible capital structure under REIT platform
• Enhancement of trading liquidity in the secondary market

• 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

Payment in kind to PFPO Unclear Waived


unitholders with REIT units

25
2017
Growth Direction

CPNRF conversion into REIT


Benefits & Concerns between PFPO and REIT
Differences Property Fund REIT
Capital increase for Not allowed Allowed
additional investment

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%)

Foreign Retail n/a 10% withholding tax


Foreign Corporate n/a or as indicated in DTA

(1) if holding 3 months pre and post dividend payment


26
2017
Growth Direction

CPNRF conversion into REIT


Proposed Transaction
REIT Name CPN Retail Growth Leasehold Real Estate Investment Trust (“CPNREIT”)

Transaction 1) PFPO-REIT Conversion


2) New asset acquisition (net asset price of Baht 11,908 mn)
2.1 CentralFestival Pattaya Beach (partial)
2.2 Hilton Pattaya Hotel
Sponsor/REIT Manager CPN REIT Management Co., Ltd.
Trustee SCB Asset Management Co., Ltd.

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

27
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.
28
Appendices

29
Strong Development & Acquisition Pipeline
1980s 1990s 2000s 2010-2016

30 existing projects (24 Greenfields, 6 Acquisitions <=> 13 in Bangkok, 17 in Provinces)


Bangkok (1) Bangkok (3) Bangkok (2) Bangkok (4)
1980 Established under Central 1993 CentralPlaza Ramindra 2002 CentralPlaza Rama 2 2011 CentralPlaza Grand Rama 9
Plaza Co., Ltd.
1995 CentralPlaza Pinklao 2008 CentralPlaza Chaengwattana 2014 CentralPlaza Salaya
Green-field Development

1982 CentralPlaza Lardprao


1997 CentralPlaza Rama 3 Provinces (3) 2015 CentralPlaza WestGate
Province (1) 2009 CentralFestival Pattaya Beach 2015 CentralFestival EastVille
1995 CentralPlaza Pattaya 2009 CentralPlaza Chonburi Provinces (9)
2009 CentralPlaza Khonkaen 2011 CentralPlaza Chiangrai
2011 CentralPlaza Phitsanulok
2012 CentralPlaza Suratthani
CentralPlaza Lardprao 2012 CentralPlaza Lampang
2013 CentralPlaza Ubonratchathani
2013 CentralFestival Chiangmai
2013 CentralFestival Hatyai
2014 CentralFestival Samui
2015 CentralPlaza Rayong
Province (1) Bangkok (3)
2016 CentralPlaza Nakhon Si
Acquisition

1996 CentralPlaza Chiangmai Airport 2001 CentralPlaza Bangna


Thammarat
2002 CentralWorld
Province (1)
2003 CentralPlaza Rattanathibet
2015 CentralFestival Phuket
Province (1)
2009 CentralPlaza Udonthani

Province (1) Bangkok (2) Bangkok (2)


& Enhancement
Redevelopment

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

Source: Company data and company estimate as of September 2016.


30
2Q17 Performance Overview

30 1.6 mn sqm 93%* 6%YoY 8%YoY


Shopping Malls NLA CPN Occ. Rate Rev. Growth Profit Growth

Key Drivers 2Q17 Financial Highlight

• The new project launched in 2016 i.e. CentralPlaza Nakhon


(THB mn) 2Q17 1Q17 %QoQ 2Q16 %YoY
Si Thammarat
Revenues 7,620 7,719 -1% 7,199 6%
• The renovated projects - CentralPlaza Pinklao,
CentralPlaza Bangna and CentralMarina – full quarter
Operating profits 2,847 3,216 -11% 2,732 4%
contribution.
Normalized Net Profit 2,483 2,776 -11% 2,293 8%
• Successful Food Destination Zone

• 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%.
31
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%

Provinces 17 11 4 2 0.58 0.06 0.63 92% 93% 93%

Total(1) 30 14 11 5 1.26 0.12 1.38 93% 94% 93%

Breakdown: NLA Breakdown: rental income

Provinces BMA Provinces


48% 41% BMA
52%
59%

No. of Occupancy Rate(1)


Non-core Properties NLA (sqm)
Projects 2Q16 1Q17 2Q17
Office in BMA (1)(2)
5 56,239 96% 96% 94%
Residential in BMA 1 1,568 37% 21% 21%
Hotel in provincial area 2 561 rooms 82% 92% 83%

(1) Excludes area transferred to CPNRF and CPNCG


(2) Excludes rental agreements < 1 year, such as kiosk, carts, ATMs and coin machines. 32
Financial Summary
Total revenues (excl non-recurring items) Operating profit Normalized Net profit Net profit

(THB mn) (THB mn) (THB mn)


10,000 9,244 9,244
29,234 12,000
10,814 9,000 7,746 7,880
11,000
25,713 8,000 7,231 7,307
10,000 9,074
23,668 8,447 7,0005,991 6,293
21,234 9,000 5,259
6,000 5,259
8,000 7,345
14,428 15,339
7,000 5,000
6,063 4,683 4,683
6,000 5,567 4,000
5,000 3,000
4,000 2,000
3,000 1,000
2,000 0
2013 2014 2015 2016 1H16 1H17 2013 2014 2015 2016 1H16 1H17 2013 2014 2015 2016 1H16 1H17

% YoY Growth 2013 2014 2015 2016 1H16 1H17


/1
Total revenues (Exc. non-recurring items) 19% 13% 9% 14% 18% 6%
Operating profit (Exc. non-recurring items) 31% 15% 7% 19% 20% 9%
Normalized Net profit 36% 21% 7% 19% 17% 12%
Net profit 2% 16% 8% 17% 13% 12%

Same store revenue growth 12% 4% 2% 2% 3% 3.4% /2

Gross Profit Margin (Exc. Other Income)(%) 47% 48% 48% 49% 49% 51%
EBITDA Margin (%) 52% 53% 53% 54% 56% 56%

33
/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

Focusing on efficient cost management:


Office
2% • Continuing implementation according to energy
conservation measures, thus less consumption
F&B
9% unit in addition to lower Ft charges during
Retail
87% quarter, led to lower utilities costs.
Hotel
2%

Note: Excludes non-recurring items.


35
SG&A Expenses Breakdown
+ 9% YoY
2Q17 SG&A expenses +19% YoY or THB 187
(THB mn) mn mainly due to:
4,406
4,500 • Additional personnel expense and marketing &
4,030
4,000 3,667 promotion expenses arising from business
3,446
3,500 expansion
3,000 + 19% YoY
+ 14% QoQ
2,500
Ability to control expenses:
2,000
1,500 • Continuous pooled mechanism with Central
1,010 1,053 1,197
1,000 Group to achieve economies of scale
500 • Marketing campaign
0
• Supply chain management
2013 2014 2015 2016 2Q16 1Q17 2Q17

Personnel Advertising & promotion Depreciation Others

2Q17 SG&A breakdown

Advertising
& promotion
Personnel
20%
51%

Depreciation
10%

Others
19%
Note: Excludes non-recurring items.
36
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

Interest expenses RS: Weighted average cost of debt

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.

(THB mn) (Times)

70,000 1.40

60,000 1.19 55,807 54,660 1.20


53,005
46,801 48,393
50,000 1.00
41,748
40,000 0.82 36,824 0.80

30,000 25,245 25,568 25,900 0.60


0.49
20,448 22,623 20,661 19,311
20,000 19,842 16,019 17,904 0.38 0.40
0.39 14,959
0.31
0.29 0.28
10,000 4,326
0.20
4,207 3,773 3,204 0.21
945 1,869 2,172 3,328 2,205
0 0.00
2011 2012 2013 2014 2015 2016 2Q16 1Q17 2Q17

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

Revenue from rent and services 6,218 6,530 6,518 (0%) 5%


Retail 6,049 6,359 6,345 (0%) 5%
Office 169 170 173 2% 3%
Other supportive businesses 0.3 0.2 0.2 0% (40%)
Revenue from hotel operations 226 293 240 (18%) 6%
Revenue from food and beverage 355 382 409 7% 15%
Other income 399 514 453 (12%) 14%
Total revenues 7,199 7,719 7,620 (1%) 6%
Cost of rent and services 3,116 3,073 3,185 4% 2%
Retail 3,046 3,008 3,118 4% 2%
Office 70 65 67 3% (5%)
Other supportive businesses 0.3 0.3 0.1 (53%) (53%)
Cost of hotel operation 75 85 78 (8%) 5%
Cost of food and beverage 275 302 315 4% 15%
Total costs 3,466 3,460 3,578 3% 3%
Operating profit 2,732 3,216 2,847 (11%) 4%
Net profit 2,293 2,776 2,483 (11%) 8%
EPS (Bt) 0.51 0.62 0.55 (11%) 8%
Gross Profit Margin (excl. other income) 49% 52% 50% (2%) 1%
Operating Profit Margin 38% 42% 37% (4%) (1%)

40
2016 Awards and Achievement

Member of Dow Jones Sustainability Indices (DJSI) Emerging Markets 2016


for three consecutive years

“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 Energy Awards 2016” honoured companies with outstanding performance in


both energy conservation and renewable energy development: (CRI, RTB, UDN, RM9)

“SET Thailand Sustainability Investment (THIS)” confirm CPN‟s commitment towards


sustainable growth and focus on environmental, social and governance (ESG) factors

“People‟s Choice Awards Thailand Voted by Chinese Tourists”


CentralWorld was voted by to be the most favorite shopping mall among Chinese tourists

“Thailand Mice Standard 2016” awarded CPN as a preferred destination for meetings,
incentives, conventions and exhibitions in ASEAN

“Asia Pacific Property Awards 2016” organized by International Property


Awards,granted CPN the highest levels of achievement in „Retail Development‟ Thailand
„5 Stars‟ Best Retail Development Thailand CentralPlaza Rayong
„Highly Recommended‟ Retail Development Thailand CentralPlaza Westgate

41
Key Trading Statistics and Dividend

Key Trading Statistics Dividend

Key Metrics THB Key Metrics 2016 2015 2014 2013 2012 2011 2010

Par Value 0.50


Par Value (THB) 0.50(3) 0.50(3) 0.50(3) 0.50(3) 1.00 1.00 1.00

Stock Price (THB) (1) 69.25 Dividend (THB/Share) 0.83 0.70 0.65 0.55 0.475 0.37 0.25

EPS (2) 0.55 Dividend Paid


3,725 3,142 2,917 2,468 2,070 806 545
(THB mn)
P/E (x)(1) 32.27
Dividend Payout Ratio 40% 40% 40% 39% 33%(2) 39% 48%
Market Capitalization (THB bn)(3) 310

Dividend policy is paid annually approximately 40% of net profit


Authorized Share Capital (mn shares) 4,488
(unless there is compelling reason against this).

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

gain from transferring assets into CPNCG.

Note 3: Par split to THB 0.50 per share effective on 7 May 2013

42
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

1. Rama 2 (Retail) 8 Yr & 1 M 82,427 87 85 90

2. Rama 3 (Retail) 78 Yr & 1 M 37,143 91 87 63

3. Pinklao (Retail) 7 Yr & 6 M 27,772 90 96 90

4. Pinklao Tower A & B (Office) 7 Yr & 6 M 33,938 93 90 90

5. Chiangmai Airport (Retail) 26 Yr & 10 M 37,553 94 94 94

Total 218,833 90 89 86

Remaining Life Occupancy Rate (%) (2)


(1)
CPNCG Office Property Leasable Area (sq.m.)
(years) 2Q16 1Q17 2Q17

CentralWorld (Office) 15 Yr & 9 M 81,412 99 100 98

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

Central Pattana Public Company Limited


31st Fl, the Offices at CentralWorld
999-9 Rama I Rd., Patumwan District
Bangkok 10330
Thailand

Tel: +66(0) 2667 5555 ext. 1688, 1689, 1632


Facsimile: +66(0) 2264 5593
Email: ir@cpn.co.th

44

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