Ann: Centro - slides Chairman and CEO presentatio, page-3

re: Ann: Centro - slides Chairman and CEO pre... awg801,

I attended today's meeting and my main outake from everyone was that 2011 is the key deadline for this business.

$11bn of Debt due in 2011.

The much talked about simplification of the Centro (CNP) and Centro Retail (CER) structures will cost money and it is this that is stopping the separation and other measures.

If they can achieve this it may unlock a lot of value in parts of the business and change the way the lender group looks at the business.

Under direct questioning from a Shareholder activist Paul Cooper, Chairman of the Board conceded that the process and road to simplification would be hard. As there are complicated ownership structures in place across the group. Simplifying them may result in sales of some assets, acquisitions of others and incurring significant stamp duty and other costs by realising an assets value in others.

Rather than double speak in great big strategic terms I get a sense that a glimmer of hope was evident in this boards eyes and while it is a long way to go yet, the next year gives CNP the chance for:

1) Property values to return or at least come back a bit, changing the NTA equation

2) Much of the ownership structures to be simplified offering the board greater leverage and opportunity to refinance debt and liquidate poor performing parts of the business.

Paul Cooper kept saying that simplification and value are inextricably linked.

The mesasage is easy then: Simplify where it comes at little or no costs. Run the new valuations, get debt rolled and while this is happening watch as property values rise as a result of the tender process they have going now. Get some real world values from possible buyers.

I know there are a lot of ifs in this scenario, but if they get through next year and improve their NTA, this will be the greatest turn around story in corporate Australia and these guys and girls will be able to name their price anywhere.