Bangkok--8 Aug--TRIS Rating TRIS Rating Co., Ltd. has affirmed the company rating of Rojana Industrial Park PLC (Rojana) at “A-” with “stable” outlook. The rating reflects Rojana’s proven record in industrial property development, its reliable income from electricity and utilities sales, and strong support from its Japanese partner. The rating also takes into consideration the volatile nature of the industrial property market and the current slowdown of the Thai economy. The “stable” outlook reflects the expectation that Rojana will be able to maintain its market position in the industrial property development. The power plant is expected to generate reliable cash flow to counter balance the fluctuations in industrial land sales. Though Rojana’s leverage will remain high during the next two years, the total debt to capitalization ratio is expected to below 60% in the medium term. TRIS Rating reported that Rojana is one of the leading industrial property developers in Thailand. It was established in 1988 by the Vinichbutr family and the Sumitomo Group. As of June 2008, the Vinichbutr family held a 25.1% stake in the company and Sumikin Bussan Corporation, a subsidiary of the Sumitomo Group, held 22.2%. Rojana currently owns and operates two industrial parks in Ayudhya and Rayong provinces. During 2005-2007, the company’s land sales averaged 548 rai per year, with cumulative land sales of 5,068 rai as of March 2008. Based on an average of 550 rai of land sold per year, the remaining salable area of approximately 4,200 rai is sufficient for Rojana’s future development. TRIS Rating said, Rojana has its own power plant, Rojana Power Co., Ltd. (Rojana Power), within the Ayudhya industrial park. Rojana Power has continuously increased electricity generating capacity from 122 megawatts (MW) and will reach 267 MW by the end of 2008, to catch up with increasing land sales and customers in the industrial park. Of this amount, 90 MW is sold to The Electricity Generating Authority of Thailand (EGAT) under the Small Power Producer (SPP) scheme; the remainder is sold to Rojana’s industrial customers. Electricity and water sales contributed approximately two-third of the company’s total revenue and 50% of total earnings before interest and tax (EBIT) during 2005-2007. For the first quarter of 2008, Rojana was able to sell 138 rai of industrial land, a 30% increase from the same period of 2007. Total industrial land sales across the industry in the first quarter of 2008 were 1,192 rai, almost double the amount sold in the same period of 2007. Rojana’s electricity sales continued to increase to Bt3,850 million, due to a growing number of industrial users. The company’s diversification into condominium development was satisfactory. The presales and construction of its first building in Bangkok were completed without a cost overrun. Rojana also launched a new 993-unit condominium project in China, worth approximately Bt3,300 million. As of March 2008, approximately 33% of the units were sold. In addition, Rojana diversified into alcoholic beverage production for export. A new factory will produce Japanese white spirits, with full annual production capacity of two million liters, beginning in September 2008. The successes of the condominium project in China and the diversification into alcoholic beverages remain to be seen. TRIS Rating said, despite a current slowdown in the Thai economy and unstable political situation, prospects for the overall industrial property sector in the medium- to long-term remain good. Foreign investment and international trade promotion policies, together with Thailand’s desirable geographic location, continue to attract foreign investors. Rojana Industrial Park PLC (Rojana) Company Rating: Affirmed at A- Rating Outlook: Stable