MBK Public Company Limited
2007/2008
Content
Corporate Overview
History & Development
Business Structure
Shopping Plaza
Hotel & Tourism
Golf
Real Estate Development
Rice
Ri
Financial Highlights
Stock Performance
St k P f
2
Corporate Overview
History & Development
1974 Established the business
1978 Listed on the Stock Exchange of Thailand (SET)
1985 Opened MBK Center Shopping Plaza
1990 Became the major shareholder of Patum Rice Mill and Granary Plc. (PRG)
1996 Opened Pathumwan Princess Hotel, Bangkok
2001 Invested in Royal Orchid Hotel (Thailand) Plc. (Royal Orchid Sheraton Hotel)
2002 Acquired Tinidee Hotel @ Rayong (Formerly known as Royal Princess Ranong Hotel) &
the Loch Plam CCourse, Phuket
Invested in Siam Piwat Co., Ltd.
2003 Opened Sheraton Krabi Beach Resort
Acquired Plan Estate Co., Ltd. from Thanachart Capital (TCAP)
Purchased land in Phuket (East side of the Loch Palm Course) for the development of the
new golf course; the Red Mountain Course
Purchased 116 rais of land in Samui for future development
2004 Acquired MBK Leisure, a tourist business operation
2006 Purchased land in central Pattaya for future development
4
History & Development
2007 Opened the new golf course; the Red Mountain Course
Renew lease agreement on land and property development (location of MBK Center, MBK
Tower and Patumwan Princess Hotel) with Chulalongkorn University
Set up a broker of new & old cars, motorcycles and manchines company; Apple Auto
Auction (Thailand)
2008 Co., Ltd.
Established 2 new real estate development companies; MBK Square Co Ltd & MBK
Arkhet Co., Ltd.
5
Business Structure As of 30 JUNE 2008
R l Estate
Real E t t Other
Shopping Plaza Hotel & Tourism Golf Rice
Development Business
Pathumwan The Loch Palm Mahboonkrong
MBK Center p
Plan Properties
Pi H t l
Princess Hotel Course Rice
(69.88%) (74.52%)
Siam Piwat Sheraton Krabi The Red Plan Estate
(30.72%) Beach Resort Mountain Course (69.88%)
(69.88%)
(69 88 )
Baan Suan
Siam Center Tinidee Hotel Rim Had
@ Ranong* Cha-am
Bann S
B Suan
Royal Orchid
Siam Discovery Loch Palm
Sheraton Phuket
(29.77%)
Siam Tower
S Crystal Lake
Absolute Travel (69.88%)
Siam Paragon MBK Leisure
(JV 50%) (49.00%)
(49 00%)
* Formerly known as Royal Princess Ranong Hotel 6
Shareholder Structure
Major Shareholder %
Patum Rice Mill and Granary Plc. 25.14
Th h tG
Thanachart Group 20.76
20 76
RBC Dexia Investor Services Trust 4.93
Thai NVDR Company Limited 2.85
Mr. Yongsak Kanathanavanich 2.35
Information as at April 17, 2008
7
Shopping Plaza
Industry Overview: Retail
6 new retail centers (5 community malls and a
superstore) with 59,733 sq.m. opened in
Bangkok in 1Q08 resulted in the total supply of
4.79 million sq.m., an increase of 0.8% q-o-q
and 3.1% y-o-y
Shopping malls, department stores and
51.3%, 26.3%
superstores accounted for 51 3% 26 3% and
22.3% of the total supply, respectively.
Overall occupancy rate in 1Q08 was 93.9%, a
94.6%
slight drop from 94 6% in 4Q07 with a declining
occupancy rate in downtown and midtown
areas but a rising occupancy rate in suburban
areas.
Average rents remained relatively stable in
1Q08.
New supply of 62,300 sq.m. is expected in
i i the total l to 4.85 illi
2Q08 rising th t t l supply t 4 85 million
sq.m. with additional 248,721 sq.m. by the end
of 2008 rising the total supply to 5.10 million
q , q p
sq.m. Another 61,723 sq.m. is expected by y
2009 and 266,200 sq.m. in 2010.
Source: CB Richard Ellis 9
Industry Overview: Office
qoq yoy
In 1Q08, total office space in Bangkok increased by 0.2% q-o-q and 1.4% y-o-y to 7.56 million sq.m.
Total net take-up in1Q08 grew by 35% q-o-q and 61.5% y-o-y to 48,991 sq.m.
Occupancy rate in 1Q08 rose slightly to 88.1% with rising occupancy rate in both CBD and non-CBD.
Demand for CBD Grade A office remained strong with occupancy rate of 92.3%.
Grade A office rent rose by 0.9% q-o-q and 1.8% y-o-y to 672 Baht per sq.m. Grade B office rent rose
by 0.5% q-o-q and 4.8% y-o-y to 506 Baht per sq.m.
New office space of 226,000 sq.m. is expected to be completed in 2008 and another 241,300 sq.m. is
expected to be completed in 2009.
Source: CB Richard Ellis
10
MBK Center
Total Area: 270,802.75 sq.m.
Rental Space:
Shopping Center
Sh i C t 142 762 86 sq.m.
142,762.86
Office 23,330.07 sq.m.
Average occupancy rate of 97-99% with long term lease (more than 3 years)
accounting for 15% of the tenant
Average rental rate of 1,383 Baht/sq.m./month
g , p y g y ,
Average traffic of 90,000 visitors per day during weekdays and 110,000 visitors
per day during weekend with foreign visitors accounting for 23% of total visitors
Target to increase foreign visitor ratio to 30% within 3 years
Average spending per customer:
Thai 1,600 Baht
Foreign 3,000-5,000 Baht
Renewed contract with Chulalongkorn University for another 20 years starting
from 2013 until 2033
Invest 450 MB in renovating Patumwan Princess Hotel room
11
Retail Business Expansion : Rama 9
Land Bank 14 rais of land on Rama 9 from Premier Shopping Complex
p q y g y
Plan to develop a boutique style neighborhood or community mall on 10 rais of
land
Target Clients: B+ consumers
Plan to develop a residential project on 4 rais of land
Currently in the process of developing a master plan
Expect to start the construction of the retail project by the end of the year and
l t b th d f t (2009)
complete by the end of next year (2009).
Source: Krung Thai Bank Research 12
Siam Piwat
Siam Center
Shopping Plaza
Rental 19,000
R t l space: 19 000 sq.m.
Siam Discovery
Shopping Plaza
Rental space: 25,000 sq.m.
Siam Tower
Office Building
Rental space: 31,500 sq.m.
Siam Car Park
Parking lot
Parking space: 2,000 cars
Note: Siam Piwat is an Associated Company of MBK 13
Siam Paragon
Joint venture between Siam Piwat and The Mall Group (50:50)
Space:
Retail Shop 54,000 sq.m.
Department Store 75,000 sq.m.
Paragon Cineplex 18,000 sq.m.
Edutainment & Healthy 11,000 sq.m.
Aquarium 10,000 sq.m.
10 000 sq m
Paragon Hall 8,500 sq.m.
Note: Siam Piwat is an Associated Company of MBK 14
Hotel & Tourism
Industry Overview: Thailand
Tourist Arrival International tourist arrival:
90
83.23
79.53 81.49 The number of international tourist arrivals in
80 74.80
70
0
69.36 1Q08 were 4.18 million, an increase of
60
13.6% y-o-y.
Million people
50 The number of international tourist arrivals at
40 Suvanabhumi Airport during 1H08 were 5.62
30 y o y.
million, an increase of 14.4% y-o-y.
20
10.00 11.65 11.52
13.82 14.46 TAT targets international tourist arrivals of
10
15.48 million in 2008 and 16.00 million in
0
2003 2004 2005 2006 2007
2009.
International tourists Thai tourists
Domestic tourism by Thai tourist
Avg per Capita Spending & Length of stay In 2009, TAT targets 87 million Thai tourists.
4,500 10
4,058 4,048 4,121 In 2008, TAT targets tourism revenue of 600
4,000
4 000 ,
3,890
3 775
3,775 9.19
9 19
8.19 8.13 8.20
8.62 8 billi b h with d i i
billion baht i h domestic tourist contributing 38
ib i 385
3,500
billion baht.
Ba per Day
3,000 6
In 2009, TAT targets tourism revenue of 630
Days
aht
2,500 4 billion bath with domestic tourist contributing 407
2,000 1,824 1,852 1,769 1,795 1,767 billion baht. TAT forecasts spending of 39,375
2.61 2.60 2.73 2.65 2.63 2
1,500 Baht per person per trip.
1,000 0 TAT continues to promote Thailand as an
2003 2004 2005 2006 2007
Avg spending - International Avg spending - Thai lt ti destination t Si
alternative d ti ti d Hong
to Singapore and H
Avg length of stay - International Avg length of stay -Thai
Kong in the MICE market.
Source: Tourism Authority of Thailand, Bank of Thailand, CB Richard Ellis
16
Industry Overview: Bangkok
Tourist Arrival Avg per Capita Spending & Length of stay
30
4,500 3.76 4
23.80 24.33 4,038 3.66
25 3,987 3.73 3.56
3.53
22.57 4,000
21.09 3,791 3,765 3,742
3.46 3.44 2.89
19 52
19.52 2.94
2 94
20 3.26 3
3,500
Million people
3,212 3,248
2,954 2,924
Baht/Day
3,000 2,867
15
Days
11.70 12.27 12.37 11.63 2
9.78 2,500
10
2,000
1
5
1,500
0 1,000 0
2003 2004 2005 2006 2007 2003 2004 2005 2006 2007
International tourists Thai tourists Avg spending - International Avg spending - Thai
Avg length of stay - International Avg length of stay -Thai
In 1Q08, there were 76 hotels with the total of
24,080 rooms in downtown area, which estimated to
accounted for 40% of total supply in Bangkok
The supply consisted of 14.7% luxury rooms, 20.4%
first-class rooms, 51.2% mid-range and 13.7%
economy. y
Majority of hotels in downtown area located in
Ploenchit/Sukhumvit (58.6%), Silom/Sathorn
(23.1%) and Riverside (18.2%) area.
Over 7 000 h t l rooms or approximately 30% of
O 7,000 hotel i t l f
current supply are expected by the end of 2010.
Source: Tourism Authority of Thailand, CB Richard Ellis
17
Industry Overview: Bangkok
Number of Room & Avg Occupancy Rate
70,000 80%
60,924 58,804 60,593
58,718 70%
60,000
60 000 54,904 69.71% 67.63% 67.96%
63.14% 60%
50,000
56.45% 50%
40,000
Rooms
40%
R
30,000
30 000
30%
20,000
20%
10,000 10%
0 0%
2003 2004 2005 2006 2007
Number of Room Avg Occupancy Rate
Average occupancy rate of upscale (first-class & luxury) hotels in Bangkok was 76% in 1Q08,
an increase of 1% q-o-q and 2% y-o-y. This was due to greater tourist arrivals including an
increase in the number of group tours from other Asian and Middle East countries.
In 1Q08, the average room rate (ADR) of Bangkok upscale hotels increase by 10.9% q-o-q
16.9% y-o-y 194, 5.6% q-o-q 6.1% y-o-y
and 16 9% y o y to USD 194 equivalent to an increase of 5 6% q o q and 6 1% y o y to
6,259 Baht.
Revenue per available room (RevPar) of Bangkok upscale hotels increased by 12.2% q-o-q
yoy
and 19.5% y-o-y to USD 147.
Source: Tourism Authority of Thailand, CB Richard Ellis
18
Pathumwan Princess
Leading 4 star hotel in the heart of
Bangkok
A member of Dusit International
462 rooms including
307 Superior rooms
80 Deluxe rooms
58 ExecuPlus Suite
2 Grand ExecuPlus Suite
Variety of international restaurant
The Olympic Club with over 1,200 members
Tantara Health Spa
Historical average occupancy rate of 85%
In process of renovating all 462
guestrooms This 450 MB renovation
guestrooms.
project is expected to be completed by the
end of 2009.
19
Royal Orchid Sheraton
Luxury riverfront hotel
Operate by Starwood, an international hotel chain
O t b St d i t ti lh t l h i
734 rooms including Executive Suites, Towers rooms and The Royal
Orchid Suite
21 function spaces with the StarMeeting Concierge team
The Royal Orchid Mandara Spa, a member of the Starwood Spa Collection
Ranked 36 among the Top 50 World’s Best Hotels in Asia 2008 by Travel &
Leisure Magazine
Named to the Condé Nast Traveler's Gold List in 2008 for the eighth
consecutive year
20
Industry Overview: Krabi
Tourist Arrival Avg per Capita Spending & Length of stay
1.4 4,000 6
1.19 5.04 4.93 3,502
1.2 4.84
3,500 5
1.00
1 00 4.78
4 78
1.0 0.94 0.94 3,000 2,886 2,861 2,919 4
Baht per Day
0.86 3.62 3.57
Million people
3.95
0.76 0.79 0.79 2,502
Days
0.8 2.93 2,438 2,432
2,500 2,270 2,314 3
0.65
2.98 2.89
2,073
0.6
2,000 2
M
0.37
0.4
1,500 1
0.2
1,000 0
0.0 2003 2004 2005 2006 2007
2003 2004 2005 2006 2007 Avg spending - International Avg spending - Thai
International tourists Thai tourists Avg length of stay - International Avg length of stay -Thai
Number of Room & Avg Occupancy Rate Positive impact from the expansion of Krabi
14,000 70% airport to support large commercial planes
12,442
12,000 10,962 57.80%
60% Kong-Krabi
The opening of Hong Kong Krabi route by
10,150
10,000 9,088
9,737
52.24% 50%
China Rich Airways and Krabi route by low
47.54%
cost airline further increase the number of
43.94%
Rooms
8,000 40%
tourist arrivals
6,000
6 000 30%
More opening of international managed hotel
R
25.88%
4,000 20% chains in Krabi during the next 2-3 years will
2,000 10% intensify the competition
0 0%
TAT plans to cooperate with Japanese
2003 2004 2005 2006 2007 investors to open Spring Spa resorts in
Number of Room Avg Occupancy Rate
various targeted destination including Krabi.
Source: Tourism Authority of Thailand
21
Sheraton Krabi Beach Resort
5 star luxury beachfront resort
Operate by Starwood, an international hotel
chain
246 rooms including
140 Superior rooms
70 Deluxe rooms
30 Zen rooms
6 Executive Suites
Mandara Spa, a member of Starwood Spa
Collection
Strategic movement to Meeting Incentive
Conventions and Exhibitions (“MICE”) market
22
Industry Overview: Ranong
Tourist Arrival Avg per Capita Spending & Length of stay
0.5
1,800 1,748 3
1,700
0.39 1,672 1,657
0.4
0.35 0.36
2 15
2.15 2.17
2 17 22
2.2 1 592
1,592
0.32 0.32 1,600 2.05
Million people
0.3 2.21 2.06 2
1,495 1,498
Ba per Day
1,443 1,439
1,422
Days
1.72 1.8
0.2 1,400
aht
1.35 1.39
1
0.1
1,200
0.021 0.021 0.030 0.032
0.019
0.0
2003 2004 2005 2006 2007
1,000 0
International tourists Thai tourists
2003 2004 2005 2006 2007
Number of Room & Avg Occupancy Rate Avg spending - International Avg spending - Thai
Avg length of stay - International Avg length of stay -Thai
1,500 35%
31.89% 31.29%
29.54% 29.43% 30.82% 30%
1,250 1,155
1,028 1,051 1,073 1,105
1 105 Ranong
25%
1,000 There is a potential for the province to
20%
Rooms
750 develop into health tourism destination
15%
500
TAT plans to cooperate with Japanese
10%
investors to open Spring Spa resorts in
250 5% various targeted destination including
0 0% Ranong.
2003 2004 2005 2006 2007
Number of Room Avg Occupancy Rate
Source: Tourism Authority of Thailand
23
Tinidee Hotel @ Ranong
Formerly named Royal Princess Ranong Hotel
4 star hotel with its own Health Spa
Manage by MBK Group
138 rooms and suites including
82 Superior rooms
34 Deluxe rooms
20 Corner Suites
4 Tinidee Suites
3-4
Original Brand for 3 4 star hotels in MBK Group
24
Hotel Business Expansion : Samui
Tourist Arrival Avg per Capita Spending & Length of stay
1.0 3,500 6
0.90
0.86 0.87
3,022 3,072 3,054
0.78 2,927 2,918 5
0.8 3,000
4.91 4.82
0.68
0 68 4 52
4.52 4.58 4.57
4 57
4
Baht per Day
Million people
0.6 2,500 2,359 2,413
2,283 2,244
Days
2,205
3
0.4 2,000 2.84
2.61 2.61 2.52 2.47 2
0.2 0.162 0.162 0.162 0.158 0.161 1,500
1
0.0 1,000 0
2003 2004 2005 2006 2007 2003 2004 2005 2006 2007
International tourists Thai tourists Avg spending - International Avg spending - Thai
Avg length of stay - International Avg length of stay -Thai
Number of Room & Avg Occupancy Rate
25,000 80% There were 1.5 million tourists visited Samui in 2007,
21,971
66.42%
68.29%
70%
85% of these were foreigners.
,
19,988
20,000 64.23% Th opening of the new passenger t
The i f th terminal at S
i l t Samui i
62.04% 60%
55.01%
Airport has increased its daily capacity to 16,000
14,405 50%
15,000 13,290 passengers, more than 4 times its previous level.
Rooms
12,769
40%
Bangkok Airway’s expansion has improved the
10,000
10 000 30% island’s ibilit tl t daily direct
i l d’ accessibility. It currently operate d il di t
5,000
20% flights to Hong Kong, Singapore and Bangkok.
10% Thai Airway has launched direct flight services from
0 0% Bangkok to Samui. Two airlines from Malaysian
2003 2004 2005 2006 2007 (Jaya and Firefly) also offer flights from Kaula
Number of Room Avg Occupancy Rate Lumpur
Source: Tourism Authority of Thailand, CB Richard Ellis 25
Hotel Business Expansion : Samui
Samui Hotel:
The arrival of international hotel brands such as W, Conrad, Four Seasons and
Park Hyatt is adding credibility to the island.
According to CB Richard Ellis, hotel in resort destinations including Samui,
outperformed theirs peers in Bangkok
MBK Expansion Plan:
150 rais of land in Bophut, Samui
Plan to develop luxury resort targeting international tourists
Plan to develop part of the land as residential project
In process of developing Master plan
Segregate the investment into phases. Phase 1 will begin next year.
Expected total investment period of 5 years.
Source: CB Richard Ellis
26
Hotel Business Expansion : Pattaya
Tourist Arrival Avg per Capita Spending & Length of stay
5
4.48 3,500 5
4.09 3,173
3,087 3,017
4 3,012 2,960
3.53 3,000 4
3.33
3 33 3.93 3.85 2,661 3.89 3.48
Million people
3.62
Baht per Day
3 2.79 2,484
2,500 2,321 2,323 3
Days
2.2 2.36 2.40 2,228
2.03 2.16
2 1.68 1.8
2,000 2.31 2.3 2
1.46
1
1,500 1
0 1,000 0
2003 2004 2005 2006 2007
2003 2004 2005 2006 2007
I t ti lt i t
International tourists Th i tourists
Thai t i t
Avg spending - International Avg spending - Thai
Number of Room & Avg Occupancy Rate Avg length of stay - International Avg length of stay -Thai
40,000 37,595 38,085 70% There were 6.2 million tourists visited Pattaya
34,007
58.09% 57.15%
62 30%
62.30% 60% in 2007, 70% of these were foreigners.
57.78%
30,000
26,503
57.48%
50%
The largest tourism groups came from Russia,
25,349
South Korea and China.
40%
Rooms
20,000 The number of tourists visiting Pattaya still on
30%
an upward trend.
p
10,000
20% The opening of Suvanabhumi Airport has made
10% Pattaya more accessible.
0 0% The growth in number of hotels managed by
2003 2004
Number of Room
2005 2006
Avg Occupancy Rate
2007 international chain will help to promote Pattaya
as the destination.
Source: Tourism Authority of Thailand, CB Richard Ellis 27
Hotel Business Expansion : Pattaya
Pattaya Hotel:
j y y
Majority of hotels are mid-class and economy hotels, which accounted for 70% of
the total hotel stock in Pattaya, with the room rates below 1,500 Baht per night
There were 6,500 hotel rooms at the end of June 2007, increased by 4% from the
beginning of 2007. The rate was over 2,500 Baht per night.
Only 4 hotels with the total of 1,300 rooms which are classified as luxury with the
room rate over 5,000 Baht per night and accounted for only 3% of the total supply.
MBK Expansion Plan:
Acquired 18 rais of land in Pattaya
Plan to develop new hotel and shopping project
In process of designing Master plan
Expect to start construction when the lease contract with the current hotel
(Montien Hotel Pattaya) expires in 2013.
Source: CB Richard Ellis 28
Hotel Business Expansion : Phuket
Tourist Arrival Avg per Capita Spending & Length of stay
4.0
3.50
5,500 6
5.44 5.57
3.5 3.28 5.20 5.29
5,000
2.88 4,552 5
3.0 2.75 ,
4,343
4,500
4 500
4,044 4,007
Million People
2.5 4,000 3,827 4
Baht per Day
3.89
2.0
3.82 3.89
3,500
Days
1.62 1.72 3.07 2.96
3.19 3
1.5 1.30 1.30 1.32 3,000 2,775 2,758 2,935
1.19 2,646
2,520
B
1.0 2,500
2 500 2
0.5 2,000
1
0.0 1,500
2003 2004 2005 2006 2007 1,000 0
International tourists Thai tourists 2003 2004 2005 2006 2007
Avg spending - International Avg spending - Thai
Number of Room & Avg Occupancy Rate Avg length of stay - International Avg length of stay -Thai
45,000 80%
40,000 37,543 70%
35,000 32,076 31,488
34,297
34 297
65.82% 60%
I 2007 th
In 2007, there were 5 million t i t visited
illi tourists i it d
31,302
60.69%
30,000 57.40% 65.47% Phuket in 2007. Phuket’s international tourist
50%
arrivals represented approximately 22.68% of
Rooms
25,000
40%
20,000 34.60% Thailand’s total international tourist arrivals.
30%
15,000 Total tourist arrival in Phuket is expect to reach
20%
10,000 5.6 million generating approximately 110,000
10%
5,000 MB of tourism revenue.
0 0%
2003 2004 2005 2006 2007
Number of Room Avg Occupancy Rate
Source: Tourism Authority of Thailand, CB Richard Ellis 29
Hotel Business Expansion : Phuket
Phuket Hotel:
Majority of hotel rooms in Phuket are
id First-class h l accounted
mid-range. Fi l hotel d
for 37% of the total supply.
Luxury hotels accounted for 4% of the
supply.
total upscale hotel supply
There are no upscale hotels in Phuket
town or inland areas. 8% of upscale
hotels locate on the East Coast with
another 91% locate on the West Coast.
10 luxury hotels with over 800 rooms
and 2,100 first class as well as 1,300
mid-range will be completed by 2010.
MBK Expansion Plan:
Plan to develop a hotel with 70 villas and 60 pool villas within the Red Mountain
Golf Course area.
Source: CB Richard Ellis 30
MBK Leisure
is a trade mark for MBK Tourism Business and are operate by
Absolute Travel Co., Ltd
MBK Leisure Co., Ltd
Rendering the following services
Ticketing agents
Hotel reservation
Car rental
Cruise
Package tour arrangement for outbound (international) and inbound
(domestic) as well as FIT (individual programs)
31
Golf
Industry Overview : Golf
Golf Course in Thailand
245 242 6%
5.5%
240 239
5%
235
No. of Golf Course
232
3.8% 4% There are approximately 242 golf
230
% Growth
courses in Thailand
225 3.0% 3%
220 In 2008, intense competition is
p
f
220
2% expected due to the construction of
215
1.3% new golf courses in China &
1%
210 Vietnam
205 0%
Thailand is till favorite golf
Th il d i still a f it lf
2004 2005 2006 2007
No. of Course % Growth destination for tourists from Japan,
Taiwan and Singapore
2005 2006 2007 2008 e
Lower number of tourism golfers is
Market Value 3,674 4,256 4,483 4,750 expected due to global economic
% Change +11.1 +15.8 +5.3 +5.9 slowdown.
Currently, there are 6 golf courses in Phuket
Each year, approximately 250,000 tourists out of the total arrivals of 5 million comes to
Phuket to play golf. These people has estimated average spending of 4,000 Baht per
1,000 2,000
capita per day generating approximately 1 000 – 2 000 MB revenue per annum
Source: Krung Thai Bank Research
33
Business Information
Golf Business is operated by MBK Resort Plc.
( y )
The Loch Palm Course (formerly known as Loch Palm Golf Club)
Standard 18 - holes golf course (par 72)
Locate on 500 rais of land (approximately
200 acres) in Kratu, Phuket
The Red Mountain Course
Standard 18 -holes golf course (par 72)
Locate on 600 rais of land (approximately 240
acres) just northeast to the Loch Palm Course in
Kratu, Ph k t
K t Phuket
Voted as 1 of the top 3 golf course in Asia
34
Golf Business Expansion
Patumthani:
p g p p
The opening of Suvanabhumi airport is expected to boost the number
international golf players for golf course within convenience distance from the
airport
MBK Expansion Plan:
Located on 900 rais of land in Patumthani
The construction of a new standard 18 – holes golf course is expected to be
completed in 2009
Plan to develop a new residential projects around the golf course under
management of Plan Properties Co., Ltd.
35
Real Estate Development
Industry Overview: Phuket
There is sustained interest in the Thai resort properties market
The development of infrastructure including marinas, golf course as well as
international standard schools and hospitals make Phuket the premiere regional
t d ti ti
resort destination.
Land prices continue to rise with land price achieved 40 MB per rai in Karon and
Kata, and 100-200 MB per rai on Patong despite uncertainty regarding the Foreign
Act
Business Act.
Demand is expected to remain strong in the future since Phuket property is much
cheaper than comparable property in the Caribbean, Mediterranean or off the
Hawaiian coast.
Supply of Residential Unit in Phuket Increasing supply of branded residences
175,000 is expected including Shangri-La Villas in
143,300
150,500 Bangtao, Park Hyatt and Capella in
150,000
, 136 445
136,445
128,110 E ld Bay, D it & R ffl R id
Emerald B Dusit Raffles Residences
125,000
in Phang Nga and Four Seasons in Rawai
100,000
5,000
75,000 2005 2006 2007 2008
50,000 43,500 46,500 49,300 52,200
Forecasted
25,000 Market Value
0 % Change +8.8
8.8 6.9
+6.9 +6.0
6.0 5.9
+5.9
2005 2006 2007E 2008E
Source: CB Richard Ellis, Krung Thai Bank Research 37
Business Information
Real Estate Development Business is operated by Plan Estate Co., Ltd. and
the Joint Venture under the name Crystal Lake Properties Co., Ltd.
Development of Lands for Sale Property Management
Baan Suan Rim Had Cha-am, Petchburi • Manage properties for sale of financial
• 36 plots of residential development
p p institutions
• 100% sold out • Improvement and reparation of
properties services
Baan Suan Loch Palm, Phuket
•60 plots of residential development on 38 Building & Community Management
rais of land next to the Loch Palm Course
• Leased office building management
• 75% sold (as of 30 June 2008)
• Community or village management
Advisory & Appraisal
• Advisory services
• Project analysis
Asset valuation appraisal
•A t l ti i l
38
Business Information
Crystal Lake Properties Co., Ltd.
Project
Project Units Progress Details
Value
Courtyard 10 90 MB Sold out Sold 90 years
Home lease to
foreigners.
50% lump sum
payment and
50% installment
years.
over 10 years
Garden 37 350 MB 75% sold Constructions is
Villa completed in
2007.
May 2007
New 6 75 MB 85% sold Construction is
Townhouse completed in
July 2007.
Lake Front 5 50 MB Sold out plots.
Sold land plots
39
Real Estate Business Expansion
Phuket:
Plan to develop a new residential project “Tropical Garden” along with a
community mall for the convenience of the residences in the Red Mountain Golf
y
Course area.
Plan to develop a luxury residential project consisting of 100 units at price range
of 12 MB to 40-50 MB in the Loch Palm Golf Course area.
Patumthani:
Located on 900 rais of land in Patumthani
Plan to develop a new 500 units residential project (next to the new golf
course) under management of Plan Properties Co., Ltd.
Supply of Residential Unit in Bangkok & Vicinity Area
68,052
70,000 63,05
63,052 62,584
2005 2006 2007 2008 59,455
60,000 52,833
Forecasted 107,805 83,723 75,304 79,350 50,000
Market Value 40,000
% Change -30.0 -22.3 -10.1 5.4 30,000
20,000
More demand for residential property in a 10,000
p ce a ge of 5 s e pec ed
price range o 1-5 MB is expected 0
2003 2004 2005 2006 2007E
Source: Krung Thai Bank Research 40
Rice
Industry Overview
Milled Rice Production & Consumption (million tons)
World Thailand
450 418 415 418 419 421 424 20 18 6
18.6
400 408 17.4
18 2
18.2 18 3
18.3
400 18
350 16
300 14
12
250 9.5
95 95
9.5 9.9 9.6
96
10
200
8
150 6
100 4
50 2
0 0
2004/05 2005/06 2006/07 2007/08e 2004/05 2005/06 2006/07 2007/08e
Milled Production Consumption
Th i rice production still show a rising t d b t at hi h production cost.
Thai i d ti till h i i trend but t higher d ti t
Most Thai rice fields locate outside irrigation area.
There are 39,834 rice mills registered with Ministry of Industry as at the end of 2006 but only
2,000 are in production
Domestic market is accounted for 60% of the rice mills and rice trading business.
There is a demand for jasmine rice in Chinese market and demand for organic rice in
European market.
World demand for rice is expected to rise while stock is showing a declined trend.
Source: United State Department of Agriculture, Kasikorn Research, Krung Thai Bank research
42
Industry Overview
Rice Product Export 2007
Japan
20%
Others Outlook 2008
36%
Domestic market is expected to
g
grow at the same rate as last
year.
USA
13%
Export looks optimistic since
agriculture area of large food
Netherland Australia
M l i
Malaysia production countries is suffered
Hong Kong 11%
5% 6% 9%
from natural disaster generating
demand to import rice product
from Thailand.
During Jan-April 2008, rice
2005 2006 2007 2008E production export grew by 12.0%
y-o-y
Export ( )
p (MB) ,
5,794 6,104
, ,
5,442 ,
6,050
% Change +0.7 +5.4 -10.8 +11.2
Source: Krung Thai Bank research
43
Business Information
Rice Business is operated by Patum Rice Mill and Granary Public Co., Ltd.
Production Capacity By Products
Milling 320,000
: 320 000 tons per year Small broken rice, bran oil, bran extract and
Packaging : 275,000 tons per year husk ashes
Rice Products Domestic distributed by products to
Market relevant industries
Domestic rice packed in 5 kg or 2 kg Export export small broken rice through
Market plastic bags for domestic exporter
distribution under the brand directly export bran oil
Mahboonkrong Rice, Patta & directly wholly export husk ashes
Jasmine Gold
Rice mixed with variety of Power: generate electricity from rice husk for
vegetable and g
g grains under the sale to the Electricity Generating Authority of
brand “Mahboonkrong Plus” Thailand (EGAT) with production capacity of
9.24 Mega Watt
Export execute export by agreement
only
Flour Products
Glutinous rice flour, non-glutinous rice flour,
jasmine rice flour and crispy jasmine rice flour
44
Financial Highlight
Balance Sheet
25,000
21,101
20,000
20 000
16,924 16,537
16,161
15,000
MB
10,636
10,465
9,750
10,000 9,209
8,528
7,633 ,
7,715
6,788
5,000
0
FY04/05 FY05/06 FY06/07 FY07/08
Assets Liabilities Shareholders' Equity
Growth (%Y-o-Y) FY04/05 FY05/06 FY06/07 FY07/08 CAGR
Asset -0.67% 4.72% -2.29% 27.60% 6.90%
Liabilities -3.70% 1.08% -12.02% 56.70% 8.65%
Shareholders’ Equity 2.21% 7.99% 5.87% 7.34% 5.25%
46
Capital Structure
12,000 1.20
10,636
10,000 1.02 1.00
0 90
0.90
0.84
8,000 7,633 7,715 0.80
6,788 0.58
0.70
6 101
6,101
MB
(X)
6,000 0.60
0.43
4,000 3,700 0.40
0.30
2,751 0.21
2,036
2,000 0.20
0 0.00
FY04/05 FY05/06 FY06/07 FY07/08
Liabilities Interest Bearing Debt D/E Interest Bearing Debt to Equity
Ratio FY04/05 FY05/06 FY06/07 FY07/08
D/E 0.90 0.84 0.70 1.02
Interest Bearing Debt to Equity (X) 0.43 0.30 0.21 0.58
Interest Bearing Debt to Liabilities (X) 0.48 0.36 0.30 0.57
Interest Coverage (X) 16.48 15.01 19.62 14.59
47
Income Statement
7,000
6,282
5,899 5,800
6,000
5 242
5,242 5,220
5,000 4,630
4,571
3,941
4,000
4 000
MB
3,000
,
2,181
1,916
2,000 1,749
1,552
1,286 1,402
1,177
1,002
1,000
0
FY04/05 FY05/06 FY06/07 FY07/08
Revenue Sale EBIT Net Profit
Growth (%Y-o-Y) FY04/05 FY05/06 FY06/07 FY07/08 CAGR
Total Revenue -0.44% 14.70% 12.52% 6.50% 8.27%
Sale 0.47% 17.48% 12.74% 11.11% 10.14%
EBIT 2.72% 12.72% 9.53% 13.81% 8.88%
48
Expense
4,500
4,102
3,983
4,000
3 493
3,493
3,500 3,360
3,153
3,019
3,000 2,852
2,455
2 455
2,500
MB
2,000
1,500
1,000
500
0
FY04/05 FY05/06 FY06/07 FY07/08
Total Expense Cost of Sale
Growth (%Y-o-Y) FY04/05 FY05/06 FY06/07 FY07/08
Total Expense 2.00%
-2 00% 15.71%
15 71% 14.09%
14 09% 2.99%
2 99%
Cost of Sale 7.84% 16.19% 10.57% 6.55%
49
Revenue Breakdown
7,000
6,282
5,899 3%
6,000 7%
4% 4%
5,242 5% Share of Profit
9%
3%
5,000 4,571 5%
10% Others
4% 1%
32%
4,000 10%
1% 31% Real Estate
33% 5%
MB
31% 3% Rice
3,000 2%
2%
18% Golf
1% 17%
17%
2 000
2,000 17%
337
Hotel
1,000 34% 32% 32% Shopping Plaza
36%
0
FY04/05 FY05/06 FY06/07 FY07/08
FY06/07 FY07/08 % Y-o-Y
Shopping Plaza 1,848 2,030 9.83%
Hotel 1,003 1,105 10.21%
Golf 122 171 40.58%
Rice 1,818 2,011 10.60%
Real Estate 307 337 9.51%
Others 545 463 -15.14%
Share of Profit 255 166 -34.94%
Total 5,899 6,282 6.50%
50
EBIT Breakdown
2,500
2,181 Share of Profit
2,250
8%
1,916 Others
2,000
,
1,749
1 749
13% 14%
1,750 1,552 8% Real Estate
3%
12% 7%
1,500 20% Rice
23%
2% 16%
1,250 28% 2% 1% Golf
MB
1% 8%
10%
1,000 1%
10% Hotel
750
52% Shopping
500 56% 54%
Plaza
53%
250
0 4%
FY04/05 FY05/06 FY06/07 FY07/08
-250
FY06/07 FY07/08 % Y-o-Y
Shopping Plaza 1,052 1,144 8.71%
Hotel 164 346 111 53%
111.53%
Golf 25 9 -65.41%
Rice 3 157 5582.53%
Real Estate 40 71 76.27%
Others 395 307 -22.28%
Share of Profit
Sh f P fit 255 166 34 94%
-34.94%
Total 1,916 2,181 13.81%
51
Profitability
3,000 42.07% 45%
39.59%
37.72% 38.40% 40%
2,500 2,440
35%
2,181
2,066
2,000 1,916 30%
1,778 1,749
1,552 22.31% 25%
1 486
1,486 21.91%
21 91% 22 46%
22.46% 21 80%
21.80%
MB
1,500 1,402
1,286 20%
1,177
1,002
1,000 15%
10%
500
5%
0 0%
FY04/05 FY05/06 FY06/07 FY07/08
Gross Profit Operating Profit Net Profit GPM NPM
Growth (%Y-o-Y) FY04/05 FY05/06 FY06/07 FY07/08 CAGR
Gross Profit -9.72% 19.61% 16.24% 18.06% 13.20%
Operating Profit 2.72% 12.72% 9.37% 13.81% 8.88%
Net Profit -4.37% 17.53% 8.95% 9.03% 8.76%
ROA 6 18%
6.18% 7.12%
7 12% 7.67%
7 67% 7.45%
7 45%
ROE 11.87% 13.27% 13.56% 13.87%
52
Stock Performance
MBK Stock Performance
180
160 MBK Listed on the Stock
Exchange of Thailand
140
i April 24,
since A il 24 1996
SET
120 Sector: Property &
100
Construction / Property
PROPERTY
p
Development
80
Registered and fully
60 paid-up capital of
40
1,886.291 MB
Par Value: 10.00 Baht
20
since listed
0 IPO Price: 48.00 Baht
r-04
r-05
r-06
r-07
r-08
Jan-04
Jul-04
Oct-04
Jan-05
Jul-05
Oct-05
Jan-06
Jul-06
Oct-06
Jan-07
Jul-07
Oct-07
Jan-08
Jul-08
Apr
Apr
Apr
Apr
Apr
2004 2005 2006 2007 8M 2008
Price (Baht) 48.00 44.50 57.50 70.00 68.50
P/E 9.49
9 49 8.30
8 30 9.70
9 70 9.62
9 62 8 95
8.95
P/BV 1.05 1.02 1.13 1.29 1.20
Market Cap (MB) 9,600 8,900 10,846 13,204 12,921
Avg. Daily Trading Value (MB) 3.48 2.83 6.34 6.03 2.28
Turnover Ratio (%) 8.99
8 99 7.35
7 35 16 99
16.99 19 43
19.43 4 21
4.21
54
Dividend Payments
10 8.00%
9.26
9 8.49
6.63% 6.74% 7.00%
8 7.77
7 77
6.44% 6.00%
7 6.62
5.36%
5.00%
6
Baht
%
5 4.00%
4 3.75
3.50
3 50 3.00%
3.25
3
2.00* 2.00%
2
1.00%
1
0 0.00%
FY04/05 FY05/06 FY 06/07 FY 07/08
Earning per Share Dividend per Share Dividend Yield
FY04/05 FY05/06 FY06/07 FY07/08
Book Value per Share 56.33 60.82 64.39 69.11
* Interim Payment Only
55
Co tact
Contact: Q&A
Ms. Dararat Homrossukhon
E-mail: dararat@mbk-center.co.th
T l (66) 2620 7120
Tel: 2620-7120
56