COUNTRY GROUP DEVELOPMENT (CGD) STRENGTH DRIVES FIRST QUARTER RESULTS

CGD today announced the following results for the quarter ended March 31, 2021, as compared to the corresponding period of last fiscal year despite COVID-19 second wave:

• Revenue was THB 1,256 million and increased 238%

• Operating Profit turned THB 163 million from negative THB 627 million

• Net Loss was THB 302 million and reduced 68%

Quarterly Highlights

• The company reported an increase in operating revenues and profit from operating activities despite the continued challenges of COVID-19 pandemic and the government imposed controls.

• First quarter revenue more than tripled from a year ago with the following notable highlights:

• Sale of the Four Season Private Residences (FSPR) remained the key contributor to the overall revenue at THB 971 million and increased 176% from the same period last year while maintaining its high gross profit margin of 50%

• Extraordinary revenue from investment project was THB 277 million from completion of surrender with the incumbent tenant and in line with the repositioning plan for the asset

• Operating profit was THB 163 million compared to negative THB 627 million last year.

• Excluding extraordinary items from gain and loss from investment project and foreign exchange rate, the ordinary operating profit was THB 368 million and increased 206%.

• Net Loss was THB 302 million and reduced 68% from THB 940 million last year, the loss mainly attributed to financial costs and loss from foreign exchange rate.

Outlook

• Although the short-term outlook remains uncertain, the longer-term outlook is becoming increasingly promising with positive news on the effectiveness and the rollout of vaccines, as well as the business on the books showing a positive trend.

• The company continues its capital strengthening plan with the divestment of hotel assets. The transaction is expected to significantly reduce financial costs, mitigate future foreign exchange exposure, as well as providing the company with a stable financial platform for business growth and sustainability.

• CGD is well-positioned to leverage on its high-quality brands and assets to generate revenues. The company expects a continued positive performance with THB 15 billion worth of ready to transfer assets to be gradually recognized in the following quarters.

• The company will remain agile and continue to take proactive measures on balance sheet management and cost control as the global economic recovery gains speed.