Siam Future Development PLC 1
Content Company & Business Overview Project Operations & Development Financial Summary 2
Company & Business Overview 3
Company Overview 1994: Founded by two former Siam Cement Group engineer with 10 million Baht registered capital 1995: Open 1 st neighborhood shopping center 1997: Increase registered capital to 20 mil. Baht 2002: Transform to a public company (registered capital of 150 mil. Baht) 2003: Raise capital to 424 mil. Baht -- Private Placement: 24 mil. Shares and warrants to Major Cineplex 2004: Set up 3 subsidiaries 2005: Issue amortized debentures of 1 billion Baht 2006: Raise capital to 509 mil. Baht by right offering Employee Stock Option Plan (ESOP) 15 mil. share 4
Company Overview Founded : 1994 Employee : 55 Rental space (GLA): End of 2005 : 96,837 sq.m. End of 2006 : 188,514 sq.m. Number of Shopping Centers: 2005 : 24 2006 : 26 Market Cap : 4.6 billion baht (market price = 9.00 baht/share, 10-Nov-06) 5
Company Overview A young company specializing in retail property development 95 % occupancy rate for the past 10 years Strong relationship with anchors and tenants 6
Business Overview TOTAL Rental Space 211,199 sq.m. 64 % 135,558 sq.m. 8 % 16,876 sq.m. Retail Real Estate Convenience Center Neighborhood Center Stand-Alone Retail Store Lifestyle center Power Center Urban Entertainment Center 28 % 58,765 sq.m. As of 31 December 2006 7
Shopping Center Concepts SF creates and applies these concept to suit customers demand. Definition Size Location Number 2006 GLA (sq.m.) 1 Stand-Alone Retail Store A specialty store such as automobile workshop. 200-500 sq.m. Around Central Business District 8 2,906 2 Convenience Center A center of small shops and stores dedicated to customers making a quick stop, commonly anchored by a convenience store. 500-1,000 sq.m. Urban but not Central Business District 4 2,943 3 Neighborhood Center A center providing convenience goods and personal services which has a supermarket as an anchor tenant. 5,000-10,000 sq.m. Suburban 7 34,751 8
Shopping Center Concepts SF creates and applies these concept to suit customers demand. Definition Size Location Number 2006 GLA (sq.m) 4 Lifestyle Center An open-air shopping center offering the finest of national specialty shops and restaurants. A shopping experience geared toward today s busy lifestyle. 5,000-25,000 sq.m Urban but not central business district 3 36,246 5 Power Center A super community center comprised of super anchor stores and small shops. 25,000 sq.m.+ Suburban 3 67,504 6 Urban Entertainment Center A combination of entertainment complex and retailers catered to consumers desiring for amusement experiences and leisure spending. 25,000 sq.m. + Urban central business district 1 44,164 9
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Critical Success Factors Fundamental Skills Efficient Operations Good Financial Management Good location selection with easy accessibility and ample parking Well conceived and designed retail format Strong tenant relationships Comprehensive Feasibility Study Experienced project management Efficient cost control Rapid construction Secure upfront tenant Pre/Post opening cash flow Effective management of debt leverage Timely payment to third parties Loyal tenants and shoppers 13
Projects Operation & Development 14
Our Vision Vision Unlike other developers, Siam Future Development creates a place for people and then for commerce. We aim to be number one mid size mall developer in Thailand. 15
Our Strategies Leasehold only (No freehold) 50% of rental space sold before land lease agreement No exclusive agreement with anchor tenants Min IRR of 15% and max payback period of 6 years 16
Our Properties Urban Entertainment Center Total Shopping Centers Formats Neighborhood Center Convenience Center Automotive Service Workshop Lifestyle Center Power Center No. of centers 8 4 8 1 3 24 2005 GLA* (sq.m.) 40,832 2,942 2,906 7,315 42,842 96,837 * GLA stands for gloss leasable area No. of centers 7 4 8 3 3 1 26 2006 GLA* (sq.m.) 34,751 2,943 2,906 36,246 67,504 44,164 188,514 No. of centers 8 4 8 8 3 1 33 2007(F) GLA* (sq.m.) 46,751 2,943 2,906 107,931 67,504 44,164 272,199 Renovate Changwattana s neighborhood center to Lifestyle center in 2006 Projects Existing Projects J-Avenue The Avenue Changwattana La-villa Phaholyothin New Projects The Avenue Pattaya Ratchayothin Kaset Nawamin Mercury Tower RS Thonglor GLA* (sq.m.) 23,155 22,685 16,000 21,000 17 7,782 5,309 6,000 6,000
Existing and New Projects Locations Existing Projects: Neighborhood Center 7 Convenience Center 4 Automotive Service Workshop 8 Lifestyle Center 3 Power Center 3 Urban Entertainment Center 1 Total 26 New Projects: Lifestyle Center 1 Total 1 18
Gross Leasable Area Summary Existing Projects 1 PROJECT UNDERCONSTRUCTION GLA 22,685 SQ.M. Underconstrucion Projects Neighborhood Center Convenience Center 7 4 Lifestyle Center 1 Automotive Service Workshop 8 Lifestyle Center Power Center 3 3 26 EXISTING PROJECTS Urban Entertainment Center 1 GLA 188,514 SQ.M. 211,199 sq.m. 19
GLA Growth Sq.m. Occupancy Rate 600,000 100% 99% 531,642 500,000 99% 425,313 98% Total GLA 400,000 97% 340,250 97% Occupancy Rate 300,000 200,000 95% 95% 272,199 95% 95% 188,514 95% 95% 95% 96% 95% 94% 100,000 34,079 36,972 61,248 96,837 93% 0 2002 2003 2004 2005 2006 2007F 2008F 2009F 2010F 92% % Growth 8 % 66 % 58 % 97 % 44% 25% 25% 25% 20
30 th ICSC International Design and Development Awards 2006 The Winner of The Innovative Design and Development of a New Project under 150,000 sq. ft. (13,935 sq. m.) 21
2006 Project Update: Opening Date: April 2006 Gross Leasable Area: - Renovation area 9,018 SQ.M - Expansion area 14,137 SQ.M. 22
2006 Project Update: Opening Date: November 2006 Gross leasable area: 5,309 SQ.M. 23
2006 Project Update: Opening Date: Q4 2006 Gross leasable area: 44,164 SQ.M. 24
2007 Project Update: Opening Date: Q3 2007 Gross leasable area: 22,685 SQ.M. 25
2007 Project Update: Mercury Tower Gross leasable area: 6,000 SQ.M. Opening Date: Q3 2007 26
2007 Project Update: Ratchayothin Opening Date: Q4 2007 Gross leasable area: 16,000 SQ.M. 27
Financial Summary 28
Financing Model Cash Inflow Cash Outflow Anchor Tenant (45% Rental Space) - Prepaid Rent -Rental Deposit Other Tenants (55% Rental Space) - Rental Deposit Working Capital Bank Loan 60% 40% Landlord -upfront Construction Contractor -Cost 20% 80% 29
Capital Expenditure Financing Plan for future expansion: Cash flow from operation Project Financing (Million Baht) Projects 2006 2007 2008 2009 2010 Esplanade 880 130 La Villa (Phahonyothin) 150 The Avenue Chaeng watthana 100 The Avenue Pattaya 100 300 Existing Projects 230 New Projects 70 1,710 1,500 1,800 2,500 Total 1,530 2,140 1,500 1,800 2,500 Net Investment 400 850 600 720 1,000 30
Our Performance Bt mil 1,400 1,200 1,240 1,000 800 600 400 200 0 622 597 423 475 369 138 169 210 51 34 46 36 155 108 2002 2003 2004 2005 9M06 Total revenue EBIT Net Profit Growth 2003 2004 2005 9M2006 (QOQ) Total revenue 23% 268% -24% 386% EBIT -9% 811% -63% 1,218% Net profit 6% 488% -49% 1,283% 31
Capital Structure Million Baht 1,800 1,600 1,400 1,200 1,000 800 600 400 200 0 1.50 1,684 1,349 1,189 860 897 0.71 438 45 0.10 7 0.01 2003 2004 2005 2006F 1.60 1.40 1.20 1.00 0.80 0.60 0.40 0.20 0.00 D/E (times) Interest Bearing Debt Equity Interest Bearing Debt to Equity 2003 2004 2005 2006F Interest Bearing Debt to Equity 0.10 0.01 1.50 0.71 32
Debt Analysis Outstanding Borrowings 2006F: 1,189 Million Baht ST Loan 7% LT Loan 20% Bond 73% Weighted Average Interest Rate = 6% 33
Share and Dividend Share Overview Par Value (Baht) Share Price (Baht) (10 Nov 06) EPS (1H2006) Share Capital: after right issuing (Shares) Market Capitalization (Million Baht) 10 Nov 06 1.00 9.00 0.30 508,941,438 4,580.47 Dividend Summary 2002 2003 2004 2005 Par Value (Baht) 1.00 1.00 1.00 1.00 Dividend (Baht/share) 0.25 0.10 0.30 0.10 Dividend Paid (Million Baht) 17.75 26.93 126.61 42.41 Dividend Payout Ratio 52% 75% 60% 40% 34
Supplementary 35
Outlets Numbers 2001 2002 2003 2004 2005 Supermarket 97 106 114 120 123 Hypermarket 97 112 124 133 162 Category killers 41 48 22 64 65 Convenience stores 1,855 2,162 2,460 3,025 3,413 36
Retail Market Supply 37
2005 Markets Number Thailand s Major Hypermarket: 2005 Rank Name Origin No. of Stores 1 Tesco Lotus UK 67 2 BigC France 44 3 Makro Netherlands 29 4 Carrefour France 22 162 Thailand s Major Supermarket: 2005 Rank Name Origin No. of Stores 1 Tops Thailand 91 2 Jusco Japan 6 3 Food Land Thailand 9 4 Villa Market Thailand 9 115 38