Central Pattana Public Company Limited Performance Analysis and Financial Position for the Quarter 3/2004 OVERALL PERFORMANCE The company's net income in Q3/2004 was 380.2 MB., increased by 27.2% Y-O-Y despite the increase in interest expense in Q3/2004 due to the issuance of unsecured bonds amounted to 2,500 MB. in March 2004. Revenues of Q3/2004 was 1,471.9 MB., increased by 12.1% Y-O-Y due to the consolidation of revenue from Central Town Center Rattanathibet, which was acquired in December 2003 and an increase in rental rate of existing projects. Moreover, gross profit margin of this quarter was 47.0% higher than 45.6% of Q3/2003 due to cost of rental and service has been managed more effectively. As the company has continuously invested in expansion of its businesses especially the construction of office building that will be opened in November 2004 and the renovation of shopping center in Central World project, net interest bearing debt to equity ratio of this quarter was increased to 0.9 times. However, it is still lower than the company's policy of 1 time. Revenues Total rental & service and food & beverage revenues of Q3/2004 amounted to 1,471.9 MB., increased by 159 MB. or 12.1% Y-O-Y due to the consolidation of revenue of Central Town Center Rattanathibet, which was acquired in December 2003. This is also due to an increase in rental rate and higher rental income from percentage to tenant's sales contract ( consignment income ) and rental income from common area ( promotion income ), an increase in revenue from Annual Sales Campaign in Q3/2004, and the opening of renovated "e-life" zone on the 4th and 5th floors of Central City Bangna on June 11, 2004. Cost and Administrative expenses Cost of rental and service of Q3/2004 was 779.9 MB., increased by 65.8 MB. or 9.2% Y-O-Y. This is due to operating cost of new project - Central Town Center Rattanathibet, repair & maintenance cost of shopping center in Central World project and higher operating cost such as electricity cost and promotion expenses. Gross profit margin of this quarter was 47.0% better than 45.6% of the same quarter of last year due to an increase in total revenues as mentioned above, especially from consignment income and promotion income. Administrative expenses of Q3/2004 amounted to 169.9 MB., decreased by 13.5 MB. or 7.4% Y-O-Y, despite the consolidation of expenses from Central Town Center Rattanathibet in this quarter. In Q3/2003 there were cost of set up of property fund for Central World project and Central City Bangna, losses from fire at Central Airport Plaza Chiangmai Phase 2B, and c ompensation to The State Railway of Thailand for building modification of Central Plaza Lardprao. Financial Position as at September 30, 2004 Assets As at September 30, 2004, the consolidated assets were 26,781.2 MB., increased from December 31, 2003 by 3,231.4 MB. or 13.7%, mainly came from the increase in cash and cash equivalents from the issuance of unsecured bonds amounted to 2,500 MB. in March 2004 and the increase in net property and equipment from the construction in Central World project and Central Park in Central Plaza Rama2. Liabilities As at September 30, 2004, the consolidated liabilities were 18,349.4 MB., increased from December 31, 2003 by 2,755.2 MB. or 17.7% due to the issuance of bill of exchange amounted to 510 MB. to pay for land cost of the company's new project. Such bill of exchange amounted to 340 MB. will be dued within 1 year which caused the increasing in other current liabilities while the rest will be dued over 1 year which is recorded as other long-term liabilities. Moreover, the company isssued unsecured bonds in March 2004 amounted to 2,500 MB. for the construction and renovation of Central World project. Shareholders' Equity Shareholders' equity as at September 30, 2004 was 8,431.8 MB., higher than that of December 31, 2003 by 476.2 MB. or 6.0%, came from net income of the first three quarters amounted to 1,029.9 MB.. While dividend was paid out from net income for the year 2003 at Baht 1.10 per share, total amount of 479.3 MB., on May 20, 2004. In addition, the company decreased its par value (par split) from Baht 5 per share to Baht 1 per share. The number of shares was increased from 435,763,200 shares to 2,178,816,000 shares, which was effective since May 17, 2004. However, this transaction has no impact to the issued and paid-up share capital amount. Financial Ratio Analysis Profitability Gross profit margin of Q3/2004 was 47.0% higher than 45.6% of the same period of last year that reflected more efficiency of company's performance, both revenue generating and cost management. Moreover, net profit margin of Q3/2004 was 24.0% increased from 21.5% Y-O-Y even though the interest expense in Q3/2004 was higher than Q3/2003. Return on equity (ROE) of Q3/2004 was 18.0% increased from 15.8% Y-O-Y. This is due to higher net income in this quarter than the same period of last year. Liquidity and Financial Policy Interest coverage ratio was increased to 7.5 times in Q3/2004 from 7.0 times in Q3/2003 as a result of better operating performance although the interest expense was increased. Net interest bearing debt to equity ratio, increased from 0.7 times in Q3/2003 to 0.9 times in Q3/2004 due to the increase in loan for projects development. However, this ratio can be maintained not more than its financial policy of 1 time. Key Ratio 30 September 2004 30 September 2003 LIQUIDITY RATIO Current Assets/Current Liabilities ( Times) 0.9 1.1 Accounts Receivable Turnover (Days) 7 9 PROFITABILITY RATIO Gross Profit Margin (%) 47.0% 45.6% Net Profit Margin (%) 24.0% 21.5% Return on Equity (%) 18.0% 15.8% EFFICIENCY RATIO Return on Assets (%) 5.7% 5.1% FINANCIAL POLICY RATIO Net Interest Bearing Debt to Equity (Times) 0.9 0.7 Interest Coverage (Times) 7.5 7.0