Central Pattana Public Company Limited Analysis of the company performance and financial position for Quarter 3/2003 OVERALL PERFORMANCE Financial results Central Pattana Public Company Limited reported the profit from operating profit of Q3/2003 amounted to 298.9 MB., increased Y-O-Y by 50 MB. or 20.1%. However, Q3/2002 profit from debt restructuring agreement of the Central Playland Company Limited, a subsidiary, amounted to 97.5 MB was incurred in Q3/2002 which resulted in decrease in the net profit Y-O-Y 47.5 MB (EPS 0.75 baht per share). The company repaid the bill of exchange amounted 935 MB. and the loan of Rama 2 amounted 200 MB in this quarter. Revenues Total rental, service and food and beverage revenues for the third quarter of the year 2003 amounted to 1,300.1 MB., increased by 425.8 MB. or 48% from the same quarter last year. This mainly came from the opening and acquisition of new projects. Rental rate was increased from renewal of short-term contracts and percentage of sales contracts. Occupancy rate of most centers was also increased. Moreover, new IT City zone was opened at Central Plaza Rama 3 which increase leasable area of 1,600 sq.m. Gross profit margin for this quarter is 45.6%, decrease from 54.2% in the same quarter last year due to land rental of Central World Plaza and depreciation of new projects. It is a nature of business that gross profit margin will always be improved after the few years of operation. Cost of goods sold and Administrative expenses Cost of goods sold Cost of goods sold of the third quarter of 2003 was 714.1 MB., higher than the same quarter of 2002 by 307.8 MB or 75.8%. This is due to cost of Central Plaza Rama 2 and Central Airport Plaza Chiangmai Phase 2B especially rental of Central World Plaza and depreciation of Central Rama 2 and Central Airport Plaza Chiangmai Phase 2B as well as the increase in utility units consumed as a result of more rented space. Administrative expenses Administrative expenses amounted to 183.8 MB., which is higher by 74.2 MB. Y-O-Y due to expenses of Central World Plaza and Central Plaza Rama 2. Furthermore, there are expenses from setting up cost of property fund for Central World Plaza of 9 MB.and losses from fire of 18 MB.that inccured in during construction of Central Airport Plaza Chiangmai Phase 2B last year recorded in this quarter. (Claim from insurance at the same amount was recorded in other income). The company recorded compensation to State Railway of Thailand for building modification of Central Plaza Lardprao in this quarter amounted to 8.3 MB. Financial Position Assets As at September 30, 2003 the company had total assets amounted 23,564.7 MB., increased from December31, 2002 by 2,191.6 MB. or 10.3% mainly came from increase in cash and short term investment as a result of capital increase from Thailand Equity Fund. and the development cost of Central Airport Plaza Chiangmai Phase 2 B which has been already opened since April 9, 2003. Liabilities As at September 30, 2003 the Company had total liabilities amounted to 16,057.2 MB., increased from December 31, 2002 by 722.8 MB. or 4.7% mainly came from loan of property fund of Central City Bangna (set up on March 6, 2003) and Central World Plaza (sale of units on June 23, 2003). Shareholders' Equity The Shareholders' Equity as at September 30, 2003 amounted to 7,577.1 MB., increase from December 31, 2002 by 1,538.4 MB. or 25.5%. This mainly came from the increase in net profit and the increasing of registered capitals by issuing convertible preferred share with 35,714,200 shares to Thailand Equity Fund at 28 baht per share, par value 5 baht per share on July 18, 2003. After the capital increase, the number of registered capitals was changed from 2,000,245,000 baht to 2,178,816,000 baht and the premium on share capital was increased from 1,186,139 baht to 2,007,565 baht. Ratio Analysis As at September 30, 2003 the current ratio was 1.1 times, while net interest bearing debt to equity ratio was 0.7 time which is still lower than the Company's policy that not more than 1 time. Return on equity (ROE) for this quarter was 16.4%, higher than 15.7% in the same quarter of prior year while return on assets (ROA) was 5.1%. Key ratio Sep. 30, 03 Dec. 31,02 Sep. 30, 02 Liquidity ratio Current assets/Current liabilities (times) 1.1 0.24 0.8 Account receivables turnover (days) 4 11 10 Profitability ratio Gross profit margin (%) 45.6 52.3 54.2 Net profit margin (%) 21.5 24.6 35.9 Return on Equity (%) 16.4 15.7 29.5 Efficiency ratio Return on Assets (%) 5.1 5.2 8.9 Financial Policy Interest coverage (times) 4.3 5.2 4.4 Net interest bearing debt to equity (times) 0.7 1.0 0.7