Central Pattana Public Company Limited Analysis of the company performance and financial position for Quarter 1/2003 OVERALL PERFORMANCE Financial results Central Pattana Public Company Limited reported th e net income for Q1/2003 of 303.5 MB. (EPS 0.76 baht per share), increased Y-O-Y by 45.4 MB. or 17.6%. This is mainly due to the opening of Central Plaza Rama 2 and acquisition of World Trade Center Bangkok in December last year despite the compensation paid to State Railway of Thailand for Central Plaza Ladprao project amounted to 45.7 MB. in this quarter. Central Airport Plaza Chaingmai Phase 2 B has been opened on April 9, 2003 with more than 85% occupancy rate. The company has successfully set up the property fund for Central City Bangna on March 6, 2003, which will reduce its financial cost and tax in the future, Moreover, the Company and its lesso r had settled the Central Plaza Ladprao land lease agreement issues with the State Railway of Thailand by paying 95.7 MB. in 2003. The Company has set up the reserve for such compensation in 2002 amounted to 50 MB. in 2002 so the remaining 45.7 MB. has been recorded in this quarter, In addition, it also agree to pay additional compensation of 24.94 MB. for 2003 and 38.86 MB. p.a. from 2004 to 2008. Such additional amount was recorded as cost of rental and service in the respective year. Revenues Total revenues for the first quarter of the year 2003 amounted to 1,256.6 MB., increased by 409.9 MB. or 48.4% from the same quarter of last year. This increase was resulted from higher rental and service income of two new projects, Central Plaza Rama 2 and World Trade Center Bangkok, the increase in salable area of the 6th -7th floors at Central City Bangna and the higher rental rate from renewal of short-term contracts and higher rental income from percentage of sales contracts. Cost of sales and Administrative expenses Cost of sales Cost of sales of the first quarter of 2003 was 649.5 MB. or 63.1%, higher than the same quarter of 2002 by 251.2 MB. or 63.1%. This is mainly due to cost of Central Plaza Rama 2 and World Trade Center Bangkok, increase in number of utility units consumed as a result of higher occupancy rate, especially the opening of Junction X and Major Cineplex at Central City Bangna last year. Administrative expenses Administrative expenses amounted 219.1 MB., which is higher by 139.7 MB. Y-O-Y due to such expenses of World Trade Center Bangkok and Central Plaza Rama 2 as well as set up property fund expenses of Central City Bangna. Furthermore, the company had recorded compensation expense for building modification of Central Plaza Ladprao amounted to 45.7 MB. in this quarter. Financial Position Assets As at March 31, 2003 the company, total assets amounted to 21,827.7 MB., increased from December31, 2002 by 454.7 MB. or 2.1% mainly came from the construction cost of Central Plaza Rama 2 and Central Airport Plaza Chaingmai Phase 2 B. Liabilities As at March 31, 2003 the Company had total liabilities 15,493.6 MB., increased from December 31,2002 by 159.1MB. or 1% due to set up of property fund for Central City Bangna. The Company has already redeemed unsecured debentures amounted to 900 MB., on March 31, 2003. Shareholders' Equity The Shareholders' Equity was higher by 295.4 MB. or 4.9% from December 31, 2002 due to an increase in net income. The Company had its par value split from Baht 10 per share to Baht 5 per share on January 2, 2003. Ratio Analysis As at March 31, 2003 the Company's liquidity is improved from December 31, 2002. Cash and short-term investments amounted to 1,476.8 MB., increased by 203.7 MB. or 16% from December 31,2002. However, net interest bearing debt to equity ratio has been maintained at 1:1, which is in line with those of the last quarter and the same quarter last year. Return on Equity (ROE) for this quarter was 23%, higher than 15.7% in the same quarter of prior year. Return on Assets (ROA) was 6.6%, higher than 5.2% in the same quarter last year. Key ratio March 31,03 Dec. 31,02 March 31,02 Liquidity ratio Current assets/Current liabilities (times) 0.35 0.24 0.89 Account receivables turnover (days) 12 11 12 Profitability ratio Gross profit margin (%) 48.3 52.3 53.0 Net profit margin (%) 23.1 24.6 29.0 Return on Equity (%) 23.0 15.7 24.5 Return on Assets (%) 6.6 5.2 6.9 Financial Policy Interest coverage (times) 5.4 5.2 5.0 Net interest bearing debt to equity (times) 1.0 1.0 1.0