Central Pattana Public Co. Ltd. · SET:CPN
Central Pattana Public — Q1 2023 Earnings Presentation
61 slides from Central Pattana Public's earnings presentation, 2023
Slide 1: Corporate Presentation 1Q23
Corporate Presentation 1Q23
Slide 2: Disclaimer
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 (“Central Pattana, “CPN” and sh
Slide 3: Agenda
AGENDA Company Overview 2023 Strategy Announced project pipeline 1Q23 Business & Operational Update Financial Performance
Slide 4: Company Overview
CENTRALPATIANA COMPANY OVERVIEW
Slide 5: Central Group Structure
CENTRAL GROUP STRUCTURE Owner, developer, and Owner, developer, and manager of retail-led manager of Centara hotel mixed-use development Fashion Hardline chains and operator of chain restaurants Food Property Health & Wellness 5
Slide 6: CPN at a Glance
CPN AT A GLANCE A top regional retail-led diversified property developer More than 40 years as industry leadership in Thailand 38 Shopping Malls 56 Majority of Retail Projects 17 Community Malls 1 Super-regional 2.3 90 % 9 (JV investment) asset base 10 28 5 Including community malls parent co. of Of
Slide 7: Market Leadership in Thailand
MARKET LEADERSHIP IN THAILAND 1 Chiangmai Central Pattana’s shopping malls are in 21 strategic provinces MARKET SHARE Chiangrai nationwide, residential projects and hotels will continue to be Lampang Phitsanulok added to create “Centre of Life” destinations 22% Hypermarket 29% (5 provinces)
Slide 8: Completing a Placemaker Ecosystem
COMPLETING A PLACEMAKER ECOSYSTEM 2016-2017 2018 2019 2020 2021 2022 8
Slide 9: The Evolution of Ecosystem
The Evolution of Ecosystem The Original Asset Model The Evolution of Ecosystem The Current Asset Model The Evolution of Ecosystem The Evolving Ecosystem Model New Sectors & Partnerships
Slide 10: Leader in Retail Mixed-Use Development
LEADER IN RETAIL MIXED-USE DEVELOPMENT “Higher & more sustainable growth through mixed-use development” Bt bn Rental revenue TRADITIONAL ASSET MODEL CURRENT ASSET MODEL 40 #1 Retail developer #1 retail-led mixed-use developer 30 20 Residential Hotel 10 CPN CPN Owned 0 Retail Residences Hotels 2010 2
Slide 11: Replicating Success of Ladprao in Other Locations
REPLICATING SUCCESS OF LADPRAO IN OTHER LOCATIONS 1st mixed-use project: Central Ladprao 1st fully integrated mixed-use in UPC: Central Korat CENTEL CPN CPN Hotel Mall Office • Central Ladprao is the first mall in CPN portfolio operated since 1982 • The first mixed-use with retail and office built a
Slide 12: Expanded Business Opportunities with CRC through Resi & Hotel
EXPANDED BUSINESS OPPORTUNITIES WITH CRC THROUGH RESI & HOTEL at Robinson Lifestyle Bowin, Chonburi Premium Budget Hotel, operated by Central Pattana 12
Slide 13: Imagining for Sustainable Future
Strategic Direction Imagining for Sustainable Future Build Sustainable Future through Net Zero Journey and being loved by every community we located in Customers & Tenants Community Green House Gas & Shareholders & Creditors Local Essence Energy Reduction better planet better people Design | P
Slide 14: Environment Target
Environment Target Net Zero Completed YTD 2030 (Apr-23) Progress 2050 2022 2023 GHG Direct & Indirect 11.1% (vs ’19) 28.5% 12% 11.1% 12.1% Fuel & Refrigerants + CPN 30% reduction o Fuel and Refrigerants CO2 reduction CO2 CO2 Electricity (vs ’19) o CPN Electricity CARBON o Tenant Electricity fr
Slide 15: 2023 Strategy
CENTRALPATIANA 2023 STRATEGY
Slide 16: The 360-Degree Centre of Life Ecosystem
The 360-Degree Centre of Life Ecosystem Total Investment 135,000 ms 30 Cities in Thailand & ASEAN New & Future Projects CENTRAL CENTRAL RAYONG N&KHON PATHOM CENTRAL CENTRAL CENTRAL AYUTTHAYA, NAKHON SAWAN KRABI Total B2B2C Solutions The Place Making for Sustainable Future ae Se Mixed-Use Development
Slide 17: Five-Year Financial Target
FIVE-YEAR FINANCIAL TARGET ~4% CAGR Revenue CAGR ~8% CAGR 14-16% Mixed-use projects’ Dusit Central Park >2.7m >0.5m concept soon to be (‘24) 2.3m finalized Other unannounced sq.m. NLA sq.m. NLA International expansion during 2023-27 0.3m sq.m. NLA projects (incl Comm (Vietnam, SEAsia) sq.m. NLA Mall
Slide 18: Five-Year Investment Plan
FIVE-YEAR INVESTMENT PLAN Pace pick-up on accelerated expansion and OCF recovery Committed CAPEX for projects 30.7 29.2 completed after 2027 ~ Bt 10.3 bn 27.1 2.1 28.0 2.1 1.1 1.0 1.2 1.7 7% 1.6 3.7 1.9 1.3 1.2 4% 2.1 1.6 2.5 1.9 19.8 2.1 6% 2.7 3.7 3.1 14.7 1.3 0.7 3.4 2.1 135 1.0 2.7 0.1 3.9 2.5 4
Slide 19: To Become One of the Industry Leaders in Other Uses
TO BECOME ONE OF THE INDUSTRY LEADERS IN OTHER USES From… 2022 Retail Led-Mixed-Use Portfolio 16 28 4 To… 2023 Retail Led-Mixed-Use Portfolio 39 17+ 35 10Identified locations Ayutthaya Rayong Banchang, Si Racha, Chonburi 19
Slide 20: 2023 Guidance Summary
2023 Guidance Summary FOCUSED PRIORITIES 2023 REVENUE GUIDANCE vs. 2022 vs. 2019 Rental & Services Business Non-retail expansion esp. hotel, which Centre of Life 24/7 +13% to 19% +8% to 14% will lift GPM on top of costs control Hotel Business +65% to +80% +35% to +45% Increase service satisfaction a
Slide 21: Announced Project Pipeline
CENTRALPATIANA ANNOUNCED PROJECT PIPELINE
Slide 22: Announced projects capex and NLA
CAPEX 3,600MB NLA 32,000 sqm CAPEX 3,800MB CAPEX4,500MB CAPEX 4,500MB NLA 25,000 sqm NLA 29,000 sqm NLA 29,000 sqm Investment 2,300MB NLA 22,000 sqm 22
Slide 23: Dusit Central Park
DUSIT CENTRAL PARK Residential: 2 brands Office: Central Park Offices Total units: ~389 Total area: ~90,000 sqm. Total floors: 69 Total floors: 43 Open date: 2025 Bldg. format: Grade A Open date: 2025 Dusit Residences CPN stake 100% Total units: ~159 Size/unit (sqm.): 120-600 Dusit Parkside Retail:
Slide 24: Non-Retail Pipeline
NON-RETAIL PIPELINE Ayutthaya (Oct 23) Rayong (Dec 23) Banchang (RBS) Si Racha Chonburi (2Q-3Q’23) 24
Slide 25: Business Update
CENTRALPATIANA BUSINESS UPDATE
Slide 26: Rental & Service
RENTAL & SERVICE RETAIL OFFICE Pre-COVID19 traffic & tenants’ sales 2019 ARR Traffic Tenants' sales Average rental rate (Baht/sqm/month) Traffic 60% 83% Discount 39% 12% 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2021 2022 2019 office occupancy 2019 sho
Slide 27: Rental & Service: Retail Revenues Breakdown
RENTAL & SERVICE RETAIL REVENUES BREAKDOWN 1Q23 VS 2019/2022 2019 2022 Gap vs 2019 24.6% 10% 10% 10.2% 14% 15% 8.7% 2022 2.2% -0.1% 1Q23 10% 9% 65% Rent Casual leasing CAM Others 66% and marketing -3% 2022 -8.6% 1Q23 1Q23 -15.3% vs 1Q22 40.5% 11% 35.9% 27.9% 14% 9% 66% 8.8% Rent Casual leasing and C
Slide 28: Completed Retail Renovation
COMPLETED RETAIL RENOVATION • Marche Thonglor, the largest mixed-use lifestyle center in Thonglor area, is comprised of retail space, office, and residential • “All goods for Thonglor neighborhood” image provides a top destination for premium supermarket, prominent restaurants, and hangout clubs • U
Slide 29: Top Choice for Global Brands
TOP CHOICE FOR GLOBAL BRANDS 29
Slide 30: Hotel
HOTEL OCCUPANCY RATE AVERAGE ROOM RATE 85% Bt /Night -3% vs 2019 65% 60% 61% 61% 49% 5,296 +37%YOY 4,880 4,819 4,743 4,250 -10%QOQ 3,464 1Q19 1Q22 2Q22 3Q22 4Q22 1Q23 1Q19 1Q22 2Q22 3Q22 4Q22 1Q23 2019 occupancy = 81% 2019 ARR = Bt 4,546/room/night REVPAR 1Q23 STATISTICS Bt -26% vs 2019 RevPar RevPa
Slide 31: 1Q23 New Hotel
1Q23 NEW HOTEL Family Work From Event Family Size Room Anywhere Halls Buffet c CENTARA UBON 31
Slide 32: Residential
RESIDENTIAL LOW-RISE BACKLOG* Unit: Bt mn 649 Unit: Bt mn 623 Total 384 5,989 6,372 501 511 454 446 444 414 322 277 1Q22 2Q22 3Q22 4Q22 1Q23 2023 384 2,085 39% Pre-sale Transfer 9 active projects HIGH-RISE Unit: Bt mn 2024 2,936 46% 1,266 1,109 2025 859 13% 542 529 520 474 220 224 125 93 1Q22 2Q22 3
Slide 33: Financial Performance
CENTRALPATIANA FINANCIAL PERFORMANCE
Slide 34: 1Q23 Reported vs Core Financial Statement
1Q23 REPORTED VS CORE FINANCIAL STATEMENT Impact Core Unit: Baht mn Per F/S from TFRS16 Performance Revenue from rental & services 8,751 8,751 Revenue from other businesses 1,230 1,230 Other income 309 309 Total Revenue 10,291 10,291 Cost of rental & services 4,075 4,075 Cost of other businesses 680
Slide 35: Core Financial Summary
CORE FINANCIAL SUMMARY* Continued QoQ positive growth momentum with normalized rental discount in 1Q23 Bt m 1Q22 4Q22 1Q23 %YoY %QoQ Total Revenue 8,072 10,583 10,291 27.5% -2.8% Gross Profit 3,723 5,162 5,226 40.4% 1.2% Core Operating Profit 2,668 3,380 3,784 41.8% 11.9% Core Net Profit 2,049 2,609
Slide 36: Total Revenue Overview
TOTAL REVENUE OVERVIEW* TOTAL REVENUE RENTAL&SERVICE Unit: Bt mn Unit: Bt mn +18% vs 2019 +13% vs 2019 +27%YoY +23%YoY 8,751 10,583 8,531 10,291 7,758 -3%QoQ +3%QoQ 7,097 8,719 8,072 1Q19 1Q22 4Q22 1Q23 1Q19 1Q22 4Q22 1Q23 HOTEL RESIDENTIAL Unit: Bt mn Unit: Bt mn +14% vs 2019 >4x vs 2019 +178%YoY +
Slide 37: Food Center Services
FOOD CENTER SERVICES Revenues from food center GPM and % of retail rental revenues 204 207 3.0% 2.8% 2.8% 198 2.8% 2.4% 2.4% 2.4% 182 2.2% 2.2% 1.9% 2.0% 1.9% 1.8% 1.7% 156 1.4% 57% 1.1% 55% 1.0% 52% 50% 47% 47% 45% 43% 41% 38% 37% 120 34% 31% 25% +73%YoY 1% +5%QoQ 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20
Slide 38: Gross Profit and GPM by Business
GROSS PROFIT AND GPM BY BUSINESS* TOTAL RENTAL & SERVICE Unit: Bt mn Unit: Bt mn 51.1% 52.0% 53.4% 52.4% 48.9% 51.8% 50.6% 47.9% 4,676 +40% YoY +35% YOY 4,438 5,226 5,162 3,968 4,358 +1% QoQ +5% QOQ 3,471 3,723 1Q19 1Q22 4Q22 1Q23 1Q19 1Q22 4Q22 1Q23 HOTEL RESIDENTIAL FOR SALE Unit: Bt mn 47% Unit:
Slide 39: Profitability
PROFITABILITY* SG&A CORE OPERATING PROFIT Unit: Bt mn Unit: Bt mn 20.4% 36.7% 36.8% 33.1% 31.9% 16.3% 16.7% 17.0% 2,157 3,784 +30% YoY +42% YoY 3,380 1,752 3,198 +12% QoQ 2,668 -19% QoQ 1,421 1,347 1Q19 1Q22 4Q22 1Q23 1Q19 1Q22 4Q22 1Q23 % to total revenues % operating margin CORE NET PROFIT ROE Uni
Slide 40: Capital Structure
CAPITAL STRUCTURE GEARING DEBT MATURITY 0.87 0.82 0.79 1Q23 average debt duration was 2.42 years 92,984 89,620 84,241 78,962 78,330 77,517 59% 69% 66% Long-term (>1yr) 5,388 7,031 6,121 1Q22 4Q22 1Q23 Short-term (<1yr) 31% 34% 41% Cash & current investments Interest-bearing debt (excl related-party)
Slide 41: Investor Relations contact
For more information, please contact Investor Relations Department Central Pattana Public Company Limited +662 667 5555 32nd Fl, centralwOrld Offices ext. 1614 / 1632 999-9 Rama I Rd., Patumwan, Bangkok 10330 Thailand http://www.centralpattana.co.th @ ir@centralpattana.co.th 43
Slide 42: Appendix
CENTRALPATIANA APPENDIX
Slide 43: Shopping Mall Structure
SHOPPING MALL STRUCTURE* JOINT-DEVELOPED AREA (40%) CPN DEVELOPED & MANAGED AREA (60%) 12% 88% CRG & CMG Central Group – related department stores & business units co-invests in fixed assets and fit-out including landscaping and shared facilities (CRG = Central Restaurant Group ; CMG = Central Marke
Slide 44: Rental Contract Structure
RENTAL CONTRACT STRUCTURE Robust contract structure with potential upside from expiring long-term leases and revenue-sharing rent with a minimum guarantee Long-term fixed rent and Expiry profile for long-term lease contract* lease 12% 62% Short-term fixed rent 41% By Area (sqm.) 24% 14% Short-term r
Slide 45: Community Mall Concept
COMMUNITY MALL CONCEPT Development concept • Neighborhood center located in high-density area (residential/ office/ school) • NLA 5k-20k sqm • Semi-outdoor concept with green area, mostly pet-friendly Tenants • Anchor tenants are typically supermarkets • Other tenants are restaurants and specialty s
Slide 46: Hotel Direction
HOTEL DIRECTION To Strengthen mixed-use property ecosystem + Capture all market segments with 3 different positioning hotels • Full facilities hotels in big cities • Upscale target • New locations: Korat, Ayutthaya, Ubon Ratchathani Number of hotels Number of keys/location Average daily room rate Ca
Slide 47: Residential Direction
RESIDENTIAL DIRECTION To create synergy value, Residential location will be in closed vicinity of our malls Super TOTAL CLASS SEGMENT Economy Main Upper High Luxury Luxury 50+ PROJECTS TOTAL Bt 52,000 mn CONDO LAUNCH VALUE Price/sqm 50-70k 70-100k 100-150k 150-200k 200-300k >300k 5 YEARS TIMELINE (2
Slide 48: New Office Model
NEW OFFICE MODEL Medium sized meeting room Small sized meeting room Phone booth Flexible space 50
Slide 49: British Embassy Land Plot Project
BRITISH EMBASSY LAND PLOT PROJECT One of the most valuable assets in Bangkok core CBD World-class mixed-use project in the bustling junctions Central Pattana’s stake: 25%* Offices: Retail: Land area & type: ~23 rai (Freehold) No. of bldg / storeys: 2 bldg. / 36 storeys No. of bldg / storeys: 1 bldg.
Slide 50: Siam Future Development PLC (SF) Acquisition
SIAM FUTURE DEVELOPMENT PLC. (SF) ACQUISITION Strategic investment to capitalize on leadership position… …and strengthen the platform for long-term growth CPN’s existing stake 4.1% Consolidation of market position via top-class retail 99.73% Acquire from previous properties (e.g., Mega Bangna) 43.
Slide 51: SF's Strong Portfolio Fortifies Growth Outlook
SF’s STRONG PORTFOLIO FORTIFIES GROWTH OUTLOOK Contributes retail project NLA growth by ~20% Asset growth from SF consolidation (as of YE21) Unit: Bt bn Small retail projects 23.6 8.6 0.9 263.4 (comm. malls) 0.21 230.3 Mega Bangna (49% JV invest.) 0.17 ~2.2 mn sqm Pre Investment in Investment Other
Slide 52: Financial History
FINANCIAL HISTORY Total revenues (excl non-recurring items) Operating profit Normalized (LHS) and Net (RHS) Profit 0,000 (Bt mn) 20,000 8,000 (Bt mn) (Bt mn) 6,000 18,000 4,000 2,000 38,104 36,810 16,000 0,000 8,000 13,310 6,000 14,000 12,243 13,800 11,621 11,738 4,000 2,000 28,091 25,882 12,000 10,
Slide 53: Breakdown
BREAKDOWN* Revenue (Bt mn) Cost (Bt mn) SG&A (Bt mn) 25,000 0 38,104 40,000 36,810 8,000 20,000 18,033 0 18,087 6,708 6,311 0 28,091 30,000 15,037 14,784 6,000 5,499 25,868 15,000 5,137 0 0 20,000 4,000 10,000 0 10,583 10,291 4,755 8,072 5,047 2,181 1,752 0 10,000 5,000 4,056 2,000 1,347 0 -- - 2019
Slide 54: Debt Analysis
DEBT ANALYSIS (Bt mn) (Bt mn) (Times) 3,000 5% 120,000 1.20 2,500 2,204 100,000 92,984 1.00 4% 90,519 83,975 89,620 82,075 84,241 87,050 3.27% 1,865 1,790 80,784 79,292 79,550 81,666 78,330 77,073 2,000 3.08% 80,000 78,962 78,615 0.80 2.81% 65,928 3% 0.91 0.89 0.85 0.82 0.79 1,500 2.25% 2.05% 2.22%
Slide 55: Asset Performance Summary
ASSET PERFORMANCE SUMMARY No. of Land NLA(1)(2) Occupancy Rate(1) NLA BY REGION 1Q23 Retail Properties (Shopping Mall Only) Projects FH LF FH&LH (mn sqm) 1Q22 4Q22 1Q23 Shopping Mall Format Overseas, 5% BMA 16 5 8 3 0.84 90% 88% 88% Provinces, Provinces 21 14 5 2 0.77 84% 92% 92% 45% Thailand 37 19
Slide 56: CPNREIT and CPNCG
CPNREIT and CPNCG • On December 1, 2017, CPNRF was converted into CPNREIT, with CPN REIT Management Co., Ltd., as the REIT manager and CPN as the property manager. Currently, CPNREIT leases 7 shopping malls, 4 offices and 1 hotel from CPN. • CPNCG was established in September 2012 and currently owns
Slide 57: Trading Statistics
TRADING STATISTICS OWNERSHIP STRUCTURE TOP 10 SHAREHOLDERS % CENTRAL HOLDING CO., LTD 26% Other Central THAI NVDR CO., LTD 8% 17% Holding STATE STREET EUROPE LIMITED 3% 26% SOUTH EAST ASIA UK (TYPE C) NOMINEES LIMITED 2% 4,488 UBS AG SINGAPORE BRANCH MR. NITI OSATHANUGRAH 2% 2% million SOCIAL SECURI
Slide 58: Property Development Portfolio (1/4)
Property Development Portfolio (1/4) Transferred to Other developed or managed projects in same CPNREIT area by CPN Shopping Mall Open Land NLA % of Lease Food Office Hotel Resid. Conv. (Bangkok and Sub-urban) (Expire) (sqm) area expire Center Hall 1. Central Ladprao 1982 L(2028) 43,410 2. Centr
Slide 59: Property Development Portfolio (2/4)
Property Development Portfolio (2/4) Transferred to Other developed or managed projects in same CPNREIT area by CPN Shopping Mall Open Land NLA % of Lease Food Office Hotel Resid. Conv. (Provinces) (Expire) (sqm) area expire Center Hall 1. Central Marina 1995 L(2035) 17,225 83% 2035 2. Central Chi
Slide 60: Property Development Portfolio (3/4)
Property Development Portfolio (3/4) Transferred to Other developed or managed projects in same area CPNREIT by CPN Shopping Mall Open Land NLA % of Lease Food Office Hotel Resid. Conv. (Provinces) (Expire) (sqm) area expire Center Hall 16. Central Phuket - Festival /A 2015 L(2056) 49,592 - Flor
Slide 61: Property Development Portfolio (4/4)
Property Development Portfolio (4/4) Community Malls (Bangkok) Type Opened Land (Expire) NLA (sqm) 1. Market Place Bangbon Neighborhood Centers 1995 LH (2024) 7,169 2. Market Place Sukaphiban 3 Neighborhood Centers 1996 LH (2037) 7,135 3. Market Place Pracha Utit Neighborhood Centers 1996 LH (2024)
Central Pattana Public Company — Q1 2023 Earnings Presentation on 6ix