Company Presentation - May 2013
Anantara Xishuangbanna, China
2
Statements included or incorporated in these materials that use the words "believe", "anticipate", "estimate", "target", or "hope", or
that otherwise relate to objectives, strategies, plans, intentions, beliefs or expectations or that have been constructed as statements as
to future performance or events, are "forward-looking statements" within the meaning are not guarantees of future performance and
involve risks and uncertainties that could cause actual results to differ materially from historical results or those anticipated at the time
the forward-looking statements are made. MINT undertakes no obligation to publicly update or revise any forward-looking statement,
whether as a result of new information, future events or otherwise. MINT makes no representation whatsoever about the opinion or
statements of any analyst or other third party. MINT does not monitor or control the content of third party opinions or statements and
does not endorse or accept any responsibility for the content or the use of any such opinion or statement.
FORWARD LOOKING STATEMENT Disclaimer
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Anantara Vacation Club, Phuket
Agenda 1Q13 Performance Recap Hotel & Mixed Use Business Restaurant Business Other Important Information
4
1Q13 Performance Recap
Sizzler’s Launch of New Menu
Performance Recap ANOTHER RECORD-HIGH PERFORMANCE
MINT REPORTED RECORD-HIGH QUARTERLY NET PROFIT OF THB 1.4 BILLION, A 13% INCREASE YoY. EXCLUDING INSURANCE CLAIM RECEIVED IN 1Q12, NET PROFIT INCREASED BY 19% YoY, ATTRIBUTABLE TO IMPROVEMENT OF ALL THREE BUSINESS UNITS.
5
6,000
8,000
10,000
1Q12A Hotel & Mixed Use Restaurant Retail Trading 1Q13A
8,767
9,636
Revenue THB Million
1,000
1,100
1,200
1,300
1,400
1,500
1Q12A Hotel & Mixed Use Restaurant Retail Trading 1Q13A
NPAT (THB Million)
1,245
1,409
+13% YoY
Excl insurance claim +19% YoY
+10% YoY
Excl insurance claim +11% YoY
6
Anantara Hoi An Resort
Hotel & Mixed Use Business
Key Development SYSTEM-WIDE HOTEL OPERATIONS
OVERALL HOTEL STATISTICS WAS FLAT AS A RESULT OF NEW HOTELS ADDED TO THE PORTFOLIO, IN PARTICULAR MANAGED HOTELS, TOGETHER WITH THE STRENGTHENING OF THAI BAHT, WHICH RESULTED IN LOWER INCREASE IN ADR’S WHEN TRANSLATED INTO THAI BAHT. STRIPPING OUT THE EFFECT OF NEW HOTELS AND EXCHANGE RATE, REVPAR OF OVERALL PORTFOLIO INCREASED BY 6% YoY.
7
THB
* Note: Hotel Statistics include Oaks Hotel & Resort
NUMBER OF HOTEL ROOMS
0
3,000
6,000
9,000
12,000
1Q12 2Q12 3Q12 4Q12 1Q13
MLR / Oaks
Managed
Joint-venture
Owned
9,707 9,838 10,082 10,348 10,606
OCCUPANCY
73%
66% 67%
71% 74%
50%
60%
70%
80%
90%
1Q12 2Q12 3Q12 4Q12 1Q13
ADR
6,039
5,228 5,284 5,740 5,936
2,000
4,000
6,000
8,000
1Q12 2Q12 3Q12 4Q12 1Q13
REVPAR
4,417
3,430 3,553
4,075 4,368
1,000
2,000
3,000
4,000
5,000
1Q12 2Q12 3Q12 4Q12 1Q13
THB
THB
-2% YoY
-1% YoY
+9% YoY
+1% YoY
Organic excl FX Impact +2% YoY
No of Rooms
Organic +3% YoY
Organic excl FX Impact +6% YoY
Key Development OWNED-HOTELS OPERATIONS
OWNED HOTELS, WHICH IS A MAJOR REVENUE DRIVER IN 1Q13 WITH 48% REVENUE CONTRIBUTION OF HOTEL & MIXED USE, SAW IMPRESSIVE REVPAR INCREASE OF 19% SYSTEM-WIDE. THIS IS DRIVEN BY REVPAR IMPROVEMENT OF ALL BRANDS – ANANTARA, FOUR SEASONS, MARRIOTT AND ST. REGIS. STRIPPING OUT THE EFFECT OF NEW HOTELS AND EXCHANGE RATE, REVPAR INCREASED BY 23% YoY.
8
NUMBER OF HOTEL ROOMS
2,554 2,335 2,335 2,335 2,494
0
1,000
2,000
3,000
1Q12 2Q12 3Q12 4Q12 1Q13
OCCUPANCY
70%
58%
64%
72%
78%
50%
60%
70%
80%
90%
1Q12 2Q12 3Q12 4Q12 1Q13
ADR
6,851
5,391 5,277 6,380
7,275
2,000
4,000
6,000
8,000
1Q12 2Q12 3Q12 4Q12 1Q13
REVPAR
4,776
3,139 3,388
4,563
5,692
0
2,000
4,000
6,000
1Q12 2Q12 3Q12 4Q12 1Q13
THB
THB
+6% YoY
+19% YoY
-2% YoY
+8% YoY
- Hua Hin Marriot + Hoi An + Quy Nhon
48% 52% Owned-hotels
Other hotels & mixed use
1Q13 REVENUE CONTRIBUTION
No of Rooms
Organic excl FX Impact +9% YoY
Organic +9% YoY
Organic excl FX Impact +23% YoY
OWNED-HOTELS PORTFOLIO & PIPELINE
MINT CONTINUES TO BUILD STRONG PIPELINE OF OWNED HOTELS OVER THE NEXT THREE YEARS, WITH PLAN TO GROW NUMBER OF ROOMS BY 10%+/- EVERY YEAR. EXPANSION CONTINUES TO BE IN MARKETS THAT MINT HAS HAD EXPERIENCE IN. NOTE THAT THE GROWTH FIGURES COULD BE HIGHER THAN THE CHART BELOW SUGGESTS IF MINT ACQUIRES MORE PROPERTIES.
9
Egypt
Key Development
Sri Lanka
Existing Avani Kalutara (105 Rooms) 2014 Avani Ambalangoda (80 Rooms) 2015 Anantara Sri Lanka (141 Rooms)
Maldives
Existing Anantara Kihavah (78 Rooms)
Vietnam
Existing Anantara Hoi An (96 Rooms) (1Q13) Qui Nhon – To be rebranded
into Avani (63 Rooms)
Thailand
Existing 12 hotels (2,152 Rooms) 2013 Anantara Layan (77 Rooms) 2015 Avani Bangkok (227 Rooms)
Australia
2014 Grand Hotel, Gladstone (143 Rooms)
2,335 2,571 2,794
3,162
0
1,000
2,000
3,000
4,000
2012 2013F 2014F 2015F
+10% +9% +13% No of Rooms
Note: Owned hotels include majority-owned hotels only
Key Development OAKS’ OPERATIONS
OAKS’ OPERATIONS PROVIDE THE HOTEL AND MIXED USE BUSINESS WITH STABLE PERFORMANCE THROUGHOUT THE YEAR, COMPARED TO HOTEL BUSINESS WHICH IS MORE EXPOSED TO SEASONALITY. OAKS’ PERFORMANCE REMAINED STABLE IN ITS AUSTRALIAN DOLLAR MARKET, WHILE THE APPRECIATION OF THAI BAHT HAS RESULTED IN THE DECLINE IN REVPAR. HOWEVER, NET PROFIT IMPROVED 3% YoY IN AUD TERM.
10
THB NUMBER OF MANAGED ROOMS
5,163 5,137 5,259 5,180 5,176
0
2,000
4,000
6,000
1Q12 2Q12 3Q12 4Q12 1Q13
OCCUPANCY
79% 76% 76% 77% 78%
50%
60%
70%
80%
90%
1Q12 2Q12 3Q12 4Q12 1Q13
ADR
REVPAR
THB
THB
THB -7% YoY
+0.3% YoY
-1% YoY
25%
75% Oaks
Other hotels & mixed use
1Q13 REVENUE CONTRIBUTION
No of Rooms 5,244
4,980 5,249 5,156 4,898
0
2,000
4,000
6,000
1Q12 2Q12 3Q12 4Q12 1Q13
AUD -1% YoY AUD
160 158 161 162 158
0
30
60
90
120
150
180
1Q12 2Q12 3Q12 4Q12 1Q13
THB -7% YoY
AUD -2% YoY AUD
4,119 3,760 3,982 3,983 3,825
0
1,000
2,000
3,000
4,000
5,000
1Q12 2Q12 3Q12 4Q12 1Q13
126 119 122 125 124
0
30
60
90
120
150
1Q12 2Q12 3Q12 4Q12 1Q13 1Q12 2Q12 4Q12 3Q12 1Q13
1Q12 2Q12 4Q12 3Q12 1Q13
OAKS PORTFOLIO & PIPELINE
AS OAKS LOOKS FOR ADDITIONAL OPPORTUNIES OVER THE COMING YEARS, CURRENT PIPELINE IS ALREADY SHOWING HEALTHY EXPANSION. IN ADDITION TO EXPANSION THROUGH MANAGEMENT LETTING RIGHTS (MLR), OAKS IS ALSO LOOKING AT MAKING SELECTIVE INVESTMENTS IN AUSTRALIA AND EXPANDING OUTSIDE OF ITS HOME MARKETS THROUGH HOTEL MANAGEMENT CONTRACTS.
11
Egypt
Key Development
China
2013 Sanya (120 Rooms)
Australia
Existing 37 Properties (4,721 Rooms) 2013 William St., Melbourne (220 Rooms) 2014 Carlyle (87 Rooms) Radius (91 Rooms) 2015 Milton (298 Rooms) Emerald (120 Rooms)
New Zealand
Existing 3 Properties (290 Rooms)
5,180 5,786 5,964
6,478
0
2,000
4,000
6,000
8,000
2012 2013F 2014F 2015F
+12% +3% +9% No of Rooms
Thailand
Existing Bangkok (115 Rooms)
UAE
Existing Dubai (165 Rooms) 2013 Liwa Suites, Abu Dhabi (54 Rooms)
Selective acquisitions:
• 50% stake in Tidal Swell, the owner of four properties currently managed by Oaks
• Oasis Resort Caloundra, 158 hotel rooms and 9 apartments, together with MLR in Sunshine Coast
• Oaks Hyde Park Plaza, Sydney, 13 units
Indonesia
2013 Oaks Jimbaran (212 Rooms) 2015 Oaks Nusa Dua (96 Rooms)
Key Development MANAGED-HOTELS OPERATIONS
REVPAR OF MANAGED HOTELS PORTFOLIO IS SLIGHTLY DOWN BECAUSE OF THE ADDITION OF NEW HOTELS, COUPLED WITH THE APPRECIATION OF THAI BAHT, WHILE ORGANIC REVPAR WITHOUT EXCHANGE RATE IMPACT SHOWED AN INCREASE OF 6% YoY. HOWEVER, THE INCREASE IN NUMBER OF ROOMS MORE THAN OFFSET THE DECLINE IN REVPAR. TOGETHER WITH TECHNICAL SERVICE FEES, MANAGEMENT FEE INCREASED BY 54% IN 1Q13 YoY.
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NUMBER OF HOTEL ROOMS
1,257 1,556 1,678
2,023 2,126
0
1,000
2,000
3,000
1Q12 2Q12 3Q12 4Q12 1Q13
OCCUPANCY
65%
50% 47%
56% 60%
30%
40%
50%
60%
70%
80%
1Q12 2Q12 3Q12 4Q12 1Q13
ADR
5,139 4,752 4,379
5,953 5,223
0
2,000
4,000
6,000
1Q12 2Q12 3Q12 4Q12 1Q13
REVPAR
3,323
2,364 2,063
3,308 3,158
0
1,000
2,000
3,000
4,000
1Q12 2Q12 3Q12 4Q12 1Q13
THB
THB
+2% YoY
-5% YoY
+69% YoY
-5% YoY
+ Anantara Uluwatu + Anantara Eastern
Mangroves, Abu Dhabi
3% 97%
Management contract
1Q13 REVENUE CONTRIBUTION
No of Rooms
Other hotels & mixed use
+ Anantara Sanya
+ Avani Sepang Malaysia
+ Serengeti Pioneer Camp
+ Oaks Sathorn + Anantara
Xisuangbanna
Organic excl FX Impact +0% YoY
Organic +4% YoY
Organic excl FX Impact +6% YoY
MANAGED-HOTELS PORTFOLIO & PIPELINE
MINT HAS AN AGGRESSIVE EXPANSION PLAN FOR MANAGED HOTELS, BOTH IN EXISTING COUNTRIES OF OPERATION TO REFLECT THE CLUSTERING STRATEGY, AS WELL AS IN NEW MARKETS.
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Egypt
Key Development
Indonesia
Existing Anantara Seminyak (60 Rooms) Anantara Uluwatu (77 Rooms) 2015 Avani Nusa Dua (654 Rooms)
UAE
Existing 3 hotels(492 Rooms) 2013 Anantara Palm Jumeirah
(293 Rooms) + Anantara Residences (456 Units)
Anantara Al Yamm (30 Rooms) Anantara Al Sahael (30 Rooms)
Vietnam
Existing Anantara Mui Ne(89 Rooms)
Thailand
Existing 6 hotels (858 Rooms)
Malaysia
Existing Avani Sepang (315 Rooms)
2,023 2,629
3,930
5,019
0
2,000
4,000
6,000
2012 2013F 2014F 2015F
+30% +45% +28% No of Rooms
China
Existing Anantara Sanya(122 Rooms) 1Q13 Anantara Xishuangbanna (103 Rooms) 2013 Anantara E-Mei (150 Rooms) 2014 Anantara Chongqing (150 Rooms) Anantara Baoting (130 Rooms) Anantara Qiandao Lake (120 Rooms) 2015 Anantara Dongguan (120 Rooms)
Tanzania
Existing Serengeti Pioneer Camp (10 Rooms)
Qatar
2014 Anantara Doha Island (117 Rooms)
Oman
2014 Anantara Salalah (136 Rooms) Anantara Al Madina (120 Rooms)
Anantara Al Akhdar (123 Rooms)
Laos
2014 Anantara Luang Prabang (115 Rooms)
India
2014 Anantara Mahabalipuram (130 Rooms) 2015 Anantara Udaipur (70 Rooms) Anantara Wayanad (95 Rooms)
Mauritius
2014 Anantara La Chaland (160 Rooms)
Sri Lanka
2015 Anantara Tangalle (150 Rooms)
Existing Projects
REAL ESTATES BUSINESS – RESIDENTIAL
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Pipeline
Sold 64%
Inventory 36%
Sold 75%
Inventory 15%
Key Development
2006 2007 2008 2009 2010 2011 2012 2013
RESIDENTIAL SALES, AS PART OF MINT’S REAL ESTATES BUSINESS, CONTINUES TO BE A CONTRIBUTOR TO THE HOTEL & MIXED USE BUSINESS. NEXT PROJECT IN THE PIPELINE IS THE FIRST ANANTARA ESTATES IN PHUKET, WHICH WILL BE LAUNCHED IN EARLY 2014. ADDITIONAL RESIDENTIAL PROJECTS NEXT TO ANY OF THE HOTEL PROPERTIES ARE BEING CONSIDERED TO ENSURE CORE PIPELINE OF MINT’S REAL ESTATES BUSINESS.
17%
83%
Real Estates
1Q13 REVENUE CONTRIBUTION
Other hotels & mixed use
Deposited 4%
Contract signed 6%
Deposited
Contract signed
to date
• 2H13 / early 2014, concurrent with the new Anantara Phuket Hotel
Expected Launch Date
• 16 villas on 32 rais of land
Project Size
• 3-8 bedroom pool villas, with approximate size ranging from 700 – 1,800 sq.m.
• Naturally secluded, offering privacy and exclusivity, with its own private bay
Project Details
Anantara Estates, Phuket
Inventory
Performance to Date
REAL ESTATES BUSINESS – ANANTARA VACATION CLUB
15
Going Forward
Key Development
ANOTHER PART OF REAL ESTATES BUSINESS, ANANTARA VACATION CLUB, LEVERAGING ON THE ANANTARA BRAND, IS GROWING TO BECOME ANOTHER SIGNIFICANT CONTRIBUTOR TO HOTEL AND MIXED USE BUSINESS. 17%
83%
Real Estates
1Q13 REVENUE CONTRIBUTION
Other hotels & mixed use
0
100
200
300
400
500
1Q12 2Q12 3Q12 4Q12 1Q13
+44%
THB million
2011 2012 2013F 2014F 2015F 2016F 2017F
22 25 46 57
400
0
100
200
300
400
2010 2011 2012 1Q13 2017F
Bangkok, Samui, Phuket, Bali, Queenstown, Sanya
No of Units 10 Destinations
Bangkok Phuket Samui Bali Hong Kong Singapore China
AVC Members – Asians as Target
Strong Quarterly Sales
Planned Pipeline of Inventories
Sales Office in Targeted Markets
Stable Revenue Stream Going Forward
Thailand 21%
Singapore 17%
China 13%
Hong Kong 12%
Malaysia 11%
Australia 4%
Japan 2%
India 2%
Others 18%
16
9M12 & 3Q12 Results Recap
The Path to our 5-Year Aspirations
Anantara Sanya, China
Restaurant Business
New brand under Thai Express Concept
SSS & TSS Growth
RESTAURANT PERFORMANCE
RESTAURANT BUSINESS CONTINUES TO SEE ROBUST AND STABLE GROWTH. SAME-STORE-SALES SHOWED REASONABLE GROWTH IN 1Q13, ON THE BACK OF STRONG DOMESTIC CONSUMPTION IN THAILAND, TOGETHER WITH EFFECTIVE MARKETING CAMPAIGNS, WHILE NUMBER OF OUTLETS EXPANDED BY 11% YoY.
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7.6% 6.5%
3.3% 4.6%
4.1%
16.0%
13.6% 12.5%
11.4%
14.6%
0%
5%
10%
15%
20%
1Q12 2Q12 3Q12 4Q12 1Q13
Same Store Sales Growth Total System Sales Growth
Key Development
No. of Outlets 1,381 1,264 1,274 1,304 1,406
2005 2012 1Q13 2017F
2005 2012 1Q13 2017F
34%
66%
34%
66% 7% 93%
36%
64% 558
2,749
Restaurant Outlets Breakdown by Geography
45%
55% 14% 86%
45%
55%
1,381
558
2,749
Restaurant Outlets Breakdown by Ownership
Franchised
Owned
1,406
1,406
46%
54%
1,381
International
Thailand
+11% YoY
+11% YoY
RESTAURANT HIGHLIGHTS
MINT CONTINUES TO IMPROVE THE OPERATIONS OF ITS EXISTING FOOD BRANDS, WHILE LOOKING FOR OPPORTUNITIES TO ADD NEW BRANDS AND NEW CONCEPTS TO ITS ALREADY DIVERSE PORTFOLIO.
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Key Development
Successful buy-one-get-one free campaign for The Pizza
Company’s anniversary
Successful Mango Sundae Promotion
Launch of new menu book design
Continued expansion of domestic franchising
Launch of BK Grill concept at all stores; Emphasis on premium beef burgers
Continued efforts in the integration of Ribs and Rumps
since the acquisition; Expansion of The Coffee Club outside of its home country
Launch of new menus for Xin Wang in 3Q12 and Thai
Express in 1Q13
Integration and consolidation of Riverside with China Food
Group
TURN-AROUND OF CHINA
THE ACQUISITION OF RIVERSIDE RESULTED IN ECONOMIES OF SCALE OF BACK OFFICE. IN ADDITION, WITH THE CONSOLIDATION OF RIVERSIDE, TOGETHER WITH RATIONALIZATION OF THE PIZZA COMPANY OUTLETS IN CHINA, MINT’S RESTAURANT BUSINESS IN CHINA STARTED TO SHOW BREAK-EVEN AT THE OPERATIONAL LEVEL SINCE 4Q12.
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Key Development
Performance Progress
Riverside’s Plans Going Forward
• Sizzler’s performance continued to improve, with improving store contribution margin over the past two years.
• The Pizza Company started to report positive store contribution margin in March 2013.
• Since the consolidation of Riverside, China business broke-even at the operational level.
• To improve R&D for development of new products
• To emphasize on service excellence, with standardized training program
• To adhere to financial discipline, with long term strategic plan and budget tracking system
INVESTMENT IN BREADTALK
MINT INCREASED ITS INVESTMENT IN BREADTALK TO 10% AS AT END OF 1Q13. TOTAL INVESTMENT AMOUNT IS SGD 19.6 MILLION, WITH AVERAGE COST PER SHARE OF SGD 0.6977. APART FROM UNREALIZED CAPITAL GAIN, MINT IS NOW ENTITLED TO DIVIDEND FROM BREADTALK GOING FORWARD.
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Key Development
609 bakery outlets
Basic Profile
47 food atria
30 restaurants
15 Countries
China (48 cities), Singapore, Indonesia, Philippines, Thailand, Hong Kong, Malaysia, India, Vietnam, Kuwait, Bahrain, Sri Lanka, Jordan, Oman, Taiwan,
Revenue Contribution
Singapore 51%
China 32%
Hong Kong 9%
Rest of World
8% Food Atrium
25%
Restaurant 23%
Bakery 52%
Financial Performance
Revenues (SGD Million)
Profit before tax (SGD Million)
212 247
303 366
447
12 16 17 17
19
2010 2008 2009 2011 2012
2008-2012 CAGR 20%
2008-2012 CAGR 13%
Staff of over
7,000
A premier lifestyle brand in the region, headquartered in Singapore. It was founded in 2000 and was listed on SGX in 2003.
21
9M12 & 3Q12 Results Recap
The Path to our 5-Year Aspirations
Anantara Sanya, China Other Important Information
New brand under Thai Express Concept
RETAIL TRADING & CONTRACT MANUFACTURING
RETAIL TRADING BUSINESS HAS SEEN STRONG SAME STORES SALE GROWTH SINCE 4Q12. SALES PER SQUARE METER ALSO STARTED TO SEE AN IMPROVING TREND SINCE THE RECOVERY FROM THE FLOOD IN 4Q12.
22
SSS & TSS SALES PER SQ.M.
-6.8%
-4.4%
-10.1%
7.2%
10.3%
5.0%
23.0%
16.3%
24.2% 23.0%
-20%
0%
20%
40%
1Q12 2Q12 3Q12 4Q12 1Q13
Key Development
Comparable Sales Growth Total Store Sales Growth
No. of Shops 235 240 246 237 240
Note: No. of shops include Laneige, Smashbox and Bloom which were closed in 1Q12, 3Q12 and 4Q12 respectively
Fashion & Cosmetic Sales per Sq.m.
THB
26,316
25,057
27,155 25,870
28,717
10,000
20,000
30,000
40,000
1Q12 2Q12 3Q12 4Q12 1Q13
No. of Shops 235 240 246 237 240
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CAPEX & BALANCE SHEET STRENGTH
IN ADDITION TO COMMITTED CAPEX, MINT ALSO SET ASIDE ADDITIONAL CAPEX FOR FUTURE ACQUISITIONS AND NEW INITIATIVES. LEVERAGE RATIO CONTINUED TO COME DOWN IN 1Q13, REFLECTING PROCEEDS FROM THE EXERCISE OF WARRANTS, TOGETHER WITH IMPROVED PROFITABILITY. WITH ITS BALANCE SHEET STRENGTH, MINT WILL BE ABLE TO FINANCE ITS CAPEX REQUIREMENTS.
Committed CAPEX & New Opportunities Leverage Ratios X
Going Forward
0.0
0.2
0.4
0.6
0.8
1.0
1.2
1.4
1Q12 2Q12 3Q12 4Q12 1Q13
Interest Bearing Debt to Equity
Net Interest Bearing Debt to Equity
Internal Policy
X
Interest Bearing Debt to Net Replacement Value
* Incremental capital increase from MINT W-4 exercise, assuming 100% MINT-W4 Conversion
THB million
Back-up Financing
0
10,000
20,000
30,000
40,000
50,000
Outstanding Borrowing & Equity
Un-Utilized Facility
Debt Debt
Shareholders’ Equity
Equity*
-
2.0
4.0
6.0
8.0
-
2,000
4,000
6,000
8,000
10,000
2012 2013F 2014F 2015F 2016F 2017F
Committed CAPEX & New Opportunities
X THB million
Additional CAPEX (non-committed average per annum) for New Opportunity/Acquisition(s)
Restaurant Hotel & Mixed-use Retail Trading
EBITDA coverage on committed CAPEX
1.01
0.72
FIVE-YEAR ASPIRATIONS
24
22 hotels
676 restaurants
316 retail shops & POS
(14,524 Sqm)
2007
84 hotels
67 residences built to date
57 timeshare units
1,406 restaurants
240 retail shops & POS
(20,279 Sqm)
1Q13
> 140 hotels
> 200 residences built to date
> 400 timeshare units
> 2,700 restaurants
> 260 retail shops & POS
(>23,000 Sqm)
2017F
NPAT (THB) 1.6bn
1.6bn 3.4bn
Going Forward
MINT’S FIVE-YEAR STRATEGY 2013-2017
MINT’S FIVE-YEAR STRATEGY WAS FORMULATED MAINLY BASED ON THE FOLLOWING THREE KEY PILLARS, WITH CLEAR GOALS AS WELL AS MEASUREMENTS.
25
Going Forward
NPAT growth of ~15-20% CAGR ROIC of >15%
Growth Pillars
Measure-ments
Drive Profitable Portfolio of Own Brands
Continually Enhance Asset Productivity
Expand Internationally Through Strategic
Investments & Acquisitions
Asset-light
Model
Mixed-use
Initiatives
Total-system-sales growth of over 15%
Revenues growth
of over 10%
Improvement of margins
Revenues from overseas of over 40%
Net profit from overseas
of 50%
2017 Goals
26
Appendix
-
2,000
4,000
6,000
8,000
10,000
1Q12 2Q12 3Q12 4Q12 1Q13
27
1Q13 Results 1Q13 REVENUE & EBITDA INCREASE OF 10% & 14%
THB million +10% YoY
MINT REPORTED 1Q13 REVENUE AND EBITDA INCREASE OF 10% AND 14% YoY RESPECTIVELY, ATTRIBUTABLE TO STRONG PERFORMANCE OF ALL THREE BUSINESS UNITS. EBITDA MARGIN IMPROVED BECAUSE OF OPERATING LEVERAGE OF OWNED HOTELS AND RESTAURANTS, GROWTH OF ASSET LIGHT BUSINESSES AND TURNAROUND OF RESTAURANT BUSINESS IN CHINA.
8,768 Restaurant
40%
Hotel & Mixed-Use
50%
Retail Trading
10%
7,524 7,842 8,859
Revenues
EBITDA
-
500
1,000
1,500
2,000
2,500
3,000
1Q12 2Q12 3Q12 4Q12 1Q13
THB million
EBITDA Margin
+14% YoY
2,245
25.6%
1,311
17.4%
1,486
18.9%
2,021
22.8%
Restaurant Hotel & Mixed-Use Retail Trading
Restaurant 28%
Hotel & Mixed-Use
68%
Retail Trading
4%
9,636
2,550
26.5%
-
300
600
900
1,200
1,500
1Q12 2Q12 3Q12 4Q12 1Q13
Restaurant Hotel & Mixed-Use Retail Trading
28
1Q13 NET PROFIT INCREASE OF 13% YoY
THB million
2012 NET PROFIT ROSE 13% YoY AS A RESULT OF IMPROVED PERFORMANCE OF ALL THREE BUSINESSES. EXCLUDING INSURANCE CLAIM RECEIVED IN 1Q12, 1Q13 NET PROFIT INCREASED MORE SIGNIFICANTLY BY 19% YoY.
Net Margin
+13% YoY
14.2%
1,245
Restaurant 29%
Hotel & Mixed-Use
67%
Retail Trading
4%
1Q13 Results
340
4.5%
345 516
6.6%
1,147
12.9%
1,409
14.6%
Note: Net profit in 2012 has been restated per the new accounting policy on current and deferred income taxes (IAS 12)
29
FINANCIAL PERFORMANCE – HOTEL & MIXED-USE Hotel Updates
Revenue
EBITDA
NPAT
EBITDA Margin
Net Margin
THB million 4,527
3,480 3,834
4,549 4,794
1,559
726 890
1,360
1,727
863
76 208
797 945
HOTEL & MIXED-USE BUSINESS SAW STABLE GROWTH OF 1Q13 REVENUES YoY, WHILE EBITDA & NET PROFIT GREW AT A FASTER RATE BECAUSE OF OPERATING LEVERAGE OF OWNED HOTELS AND HIGHER HOTEL MANAGEMENT FEES WHICH HAVE HIGHER MARGINS.
Owned hotels, accounting for 48% of hotel and mixed-use revenues in 1Q13, saw strong RevPar increase of 19% YoY;
RevPar of Oaks declined by 7%, primarily from the appreciation of Thai Baht against Australian dollar. Oaks contributes 25% of hotel and mixed-use revenues;
Revenue of management contracts increased by 54%, from the increase in number of rooms by 69% YoY, despite the RevPar decline of 5%. Management contract is 3% of hotel and mixed-use revenues in 1Q13;
Real estates business is 17% of hotel and mixed-use revenues. Despite the 2% transfer of St. Regis units, revenues from real estates business increased by 2% because of 44% sales growth of Anantara Vacation Club, together with other income, which comprise rental income and maintenance fees from the two properties, sales of Anantara Vacation Club’s trial packages and cost adjustment of residential business;
EBITDA margin increased from the enhanced operating leverage of hotel operations and improved profitability of hotel management and mixed-use businesses.
Key Highlights
1Q12
+6% YoY
34.4%
19.1%
20.9%
2.2%
2Q12 4Q12
23.2%
17.5%
29.9%
5.4%
3Q12 1Q13
19.7%
+11% YoY
36.0%
+9% YoY
Note: Net profit in 2012 has been restated per the new accounting policy on current and deferred income taxes (IAS 12)
30
HOTEL PERFORMANCE BY BRAND – 1Q13
Systemwide
Organic
Hotel Updates
Hotel ARR (Bt/night)
1Q13 1Q12 Chg 1Q13 1Q12 %Chg 1Q13 1Q12 Chg
Anantara 67% 65% 2% 7,607 7,738 -2% 5,111 5,040 1%
Marriott 87% 80% 7% 5,498 4,811 14% 4,787 3,854 24%
Four Seasons 78% 64% 14% 9,713 9,349 4% 7,579 5,969 27%
Oaks 78% 79% 0% 4,821 5,244 -8% 3,765 4,119 -9%
Others 57% 58% -1% 5,382 6,245 -14% 3,084 3,615 -15%
Average
(incl. Oaks) 74% 73% 0% 5,936 6,039 -2% 4,368 4,417 -1%
Average
(excl. Oaks) 69% 67% 2% 7,063 7,094 0% 4,891 4,756 3%
Avg - Thailand 78% 68% 10% 5,646 5,332 6% 4,429 3,644 22%
Avg - Overseas
(incl. Oaks) 71% 76% -5% 6,086 6,401 -5% 4,339 4,858 -11%
Avg - Overseas
(excl. Oaks) 54% 63% -9% 10,600 13,676 -22% 5,678 8,560 -34%
Occupancy (%) RevPar (Bt/night)
Hotel ARR (Bt/night)
1Q13 1Q12 Chg 1Q13 1Q12 %Chg 1Q13 1Q12 Chg
Anantara 73% 65% 7% 7,692 7,738 -1% 5,583 5,040 11%
Marriott 87% 80% 7% 5,498 4,811 14% 4,787 3,854 24%
Four Seasons 78% 64% 14% 9,713 9,349 4% 7,579 5,969 27%
Oaks 78% 79% 0% 4,821 5,244 -8% 3,765 4,119 -9%
Others 57% 58% -1% 6,728 6,245 8% 3,815 3,615 6%
Average
(incl. Oaks) 76% 73% 3% 5,976 6,039 -1% 4,544 4,417 3%
Average
(excl. Oaks) 74% 67% 7% 7,318 7,094 3% 5,388 4,756 13%
Avg - Thailand 78% 68% 10% 5,646 5,332 6% 4,429 3,644 22%
Avg - Overseas
(incl. Oaks) 75% 76% -1% 6,165 6,401 -4% 4,607 4,858 -5%
Avg - Overseas
(excl. Oaks) 58% 63% -5% 14,811 13,676 8% 8,551 8,560 0%
Occupancy (%) RevPar (Bt/night)
31
HOTEL PERFORMANCE BY OWNERSHIP – 1Q13
Systemwide
Organic
Hotel Updates
Hotel ARR (Bt/night)
1Q13 1Q12 Chg 1Q13 1Q12 %Chg 1Q13 1Q12 Chg
Owned 78% 70% 9% 7,275 6,851 6% 5,692 4,776 19%
Joint Venture 56% 53% 2% 17,842 18,735 -5% 9,933 9,999 -1%
Managed 60% 65% -4% 5,223 5,139 2% 3,158 3,323 -5%
MLR 78% 79% 0% 4,898 5,244 -7% 3,825 4,119 -7%
Average
(incl. Oaks) 74% 73% 0% 5,936 6,039 -2% 4,368 4,417 -1%
Average
(excl. Oaks) 69% 67% 2% 7,063 7,094 0% 4,891 4,756 3%
Avg - Thailand 78% 68% 10% 5,646 5,332 6% 4,429 3,644 22%
Avg - Overseas
(incl. Oaks) 71% 76% -5% 6,086 6,401 -5% 4,339 4,858 -11%
Avg - Overseas
(excl. Oaks) 54% 63% -9% 10,600 13,676 -22% 5,678 8,560 -34%
Occupancy (%) RevPar (Bt/night)
Hotel ARR (Bt/night)
1Q13 1Q12 Chg 1Q13 1Q12 %Chg 1Q13 1Q12 Chg
Owned 79% 70% 9% 7,409 6,851 8% 5,842 4,776 22%
Joint Venture 56% 53% 2% 17,842 18,735 -5% 9,933 9,999 -1%
Managed 68% 65% 4% 5,036 5,139 -2% 3,442 3,323 4%
MLR 78% 79% 0% 4,898 5,244 -7% 3,825 4,119 -7%
Average
(incl. Oaks) 76% 73% 3% 5,976 6,039 -1% 4,544 4,417 3%
Average
(excl. Oaks) 74% 67% 7% 7,318 7,094 3% 5,388 4,756 13%
Avg - Thailand 78% 68% 10% 5,646 5,332 6% 4,429 3,644 22%
Avg - Overseas
(incl. Oaks) 75% 76% -1% 6,165 6,401 -4% 4,607 4,858 -5%
Avg - Overseas
(excl. Oaks) 58% 63% -5% 14,811 13,676 8% 8,551 8,560 0%
Occupancy (%) RevPar (Bt/night)
32
EXPANSION INTO MARKETS INSIDE AND OUTSIDE THAILAND WILL CONTRIBUTE WELL TO REVENUE & PROFIT IN COMING YEARS.
MINT’S HOTEL EXPANSION PLANS
Hotel Investment
2014
10 Hotels / 875 Rooms
• Xishuangbanna, China (103 Rooms)
• Chengdu, China (150 Rooms)
• Palm Jumeirah, UAE (293 Rooms)
• Al Yamm, UAE (30 Rooms)
• Al Sahael, UAE (30 Rooms)
29 Hotels & Properties / 4,198 Rooms
Management Contract
2013
• Masai Mara Camp,
Kenya (16 Rooms)
• Amboseli Camp,
Kenya (16 Rooms)
• Grand Hotel,
Gladstone
Australia
(143 Rooms)
• Phuket –
Bundarika
(77 Rooms)
• Hoi An,
Vietnam
(96 Rooms)
• Sri Lanka
(141 Rooms)
• Chongqing, China (150 Rooms)
• Baoting, China (130 Rooms)
• Qiandao Lake, China (120 Rooms)
• Luang Prabang, Laos (115 Rooms)
• Salalah, Oman (136 Rooms)
• Al Akhdar, Oman (123 Rooms)
• Al Madina, Oman (120 Rooms)
• Doha, Qatar (117 Rooms)
• Mahabalipuram, India (130 Rooms)
• La Chaland, Mauritius (160 Rooms)
• Bangkok
(227 Rooms)
2015
• Ambalangoda,
Sri Lanka
(80 Rooms)
• Meru, Kenya
(16 Rooms)
• Sanya, China
(120 Rooms)
• Liwa Suites, Abu
Dhabi (54 Rooms)
• Jimbaran, Bali
(212 Rooms)
• William St.,
Melbourne
(220 Rooms)
• Tangalle, Sri Lanka (150 Rooms)
• Dongguan, China (120 Rooms)
• Udaipur, India (70 Rooms)
• Wayanad, India (95 Rooms)
• Quy Nhon,
Vietnam
(63 Rooms)
Going Forward
• Carlyle
(87 Rooms)
• Radius
(91 Rooms)
• Milton
(298 Rooms)
• Emerald
(120 Rooms)
• Oaks Nusa Dua,
Bali (96 Rooms)
• Avani Nusa
Dua, Bali
(654 Rooms)
Total
MINT’S COMPOSITION OF HOTEL ROOMS ARE EXPECTED TO CHANGE OVER THE NEXT FIVE YEARS. MINT WILL FOCUS ON THE EXPANSION OF OUR OWN BRANDS, ANANTARA AND OAKS, MORE EXPONENTIALLY THROUGH ASSET LIGHT MODEL (MANAGEMENT CONTRACTS), WITH GEOGRAPHICAL FOCUS OUTSIDE OF THAILAND.
MINT’S HOTEL PORTFOLIO
No of rooms
-
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
2005 1Q13 2017F
Others Oaks
Avani Anantara
Four Seasons Marriott
2,169
15,797
55% 5% 4%
20%
26%
3%
19%
50%
33%
6%
9%
44%
9%
-
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
2005 1Q13 2017F
Managed
Joint Venture
Own Equity
92% 24% 20%
8% 7%
5%
69%
75%
2,169
-
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
2005 1Q13 2017F
International
Outside Bangkok
Bangkok
36% 14% 11% 56%
15% 10% 8%
71% 79%
2,169
By Location By Ownership By Brand
33
5%
10,606
6%
5%
15,797
10,606
15,797
10,606
Hotel Updates
No of rooms No of rooms
-10%
0%
10%
20%
30%
0
5
10
15
20
25
30
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013F
Tourist Arrival % Change
HOTEL INDUSTRY OUTLOOK IS EXPECTED TO REMAIN STRONG ON THE BACK OF INCREASING TOURIST ARRIVAL.
Million Tourists Arrival to Thailand – Yearly Trend
Source: Tourism Authority of Thailand and Bank of Thailand
TOURIST ARRIVAL TO THAILAND
Million Tourist Arrival to Thailand – Monthly Trend
34
-40%
-20%
0%
20%
40%
60%
80%
0.0
0.5
1.0
1.5
2.0
2.5
3.0
Jan-10 Apr-10 Jul-10 Oct-10 Jan-11 Apr-11 Jul-11 Oct-11 Jan-12 Apr-12 Jul-12 Oct-12 Jan-13
Hotel Updates
0
300,000
600,000
900,000
1,200,000
China Russia Japan Korea Germany
1Q12 1Q13
0
20,000
40,000
60,000
80,000
100,000
120,000
Thailand East Asia Europe The Americas South Asia Oceania Middle East Africa & Others
1Q12
1Q13
MINT’S FEEDER MARKETS
No of room nights
MINT’s 1Q13 Feeder Markets Thailand’s Top 5 Feeder Markets
No of tourists
MINT’s 1H12 Feeder Markets
* Note: MINT’s feeder market excludes Oaks’
35
Hotel Updates
-12%
60%
10%
-4%
24% 23%
MINT’s 1Q13 Feeder Markets
1%
34%
MINT CONTINUES TO SEE IMPROVEMENTS ACROSS ALL OF ITS FEEDER MARKETS, WITH A 21% YoY INCREASE IN 1Q13 OVERALL ROOMNIGHTS COMPARED TO INCREASE IN THAILAND’S TOURIST ARRIVALS OF 19% YoY.
China +135% Hong Kong +40%
Japan +17% Singapore +5%
Korea +6%
UK +17% Russia +4%
Australia +25%
India +38%
93%
26%
22% 20%
12%
Thailand, 8%
East Asia,
32%
Europe, 35%
The Americas,
9%
South Asia,
3%
Oceania, 4%
Middle East,
7%
Africa &
Others, 2%
STRENGTHENING OF HOTEL’S NON-TRADITIONNAL MARKETS
ALTHOUGH CHINA AND RUSSIA REPRESENTED ONLY 10% OF MINT’S TOTAL FEEDER MARKETS BASED ON ROOM NIGHTS IN 2012, THE YIELDS THEY GENERATED WERE RELATIVELY MUCH HIGHER AS THEY MOSTLY STAYED AT HIGHER-ROOM-RATE HOTELS, E.G. IN MALDIVES AND PHUKET.
Hotel Updates
36
MINT’s 2012 Feeder Markets
China 6% Russia
4%
Others 90%
Maldives Hotels
19% Anantara
& JW Marriott Phuket
8% Four Seasons Group 17%
St. Regis 5%
Others 51%
Maldives Hotels
26%
Anantara & JW
Marriott Phuket
34% Four
Seasons Group
3%
St. Regis 1%
Others 36%
Average ADR*: Bt 10,058 Average ADR*: Bt 15,929
Average ADR: Bt 5,589
* The pie charts include total room nights of MINT hotel portfolio (excluding Oaks), while average daily rates of China and Russia markets are calculated from Maldives hotels, Anantara Phuket, JW Marriott Phuket, Four Seasons group and St. Regis (excluding others)
Hotel Updates
BANGKOK HAS SEEN AGGRESSIVE INCREASE IN NEW SUPPLY DURING 2010 – 2012, BUT THE RATE IS EXPECTED TO SLOW DOWN IN THE NEXT FEW YEARS.
0
5,000
10,000
15,000
20,000
No of rooms
Source: HVS Reseach
2012 No. of Rooms
Sofitel Bangkok, Sukhumvit 13
W Hotel Bangkok
Hotel Okura Bangkok
Hansar Bangkok
Hotel Sofitel So Bangkok
The Siam, Bangkok
Surya by Supatra
344
403
240
94
238
39
68
2013F
The Langham Sukhumvit Bangkok
Langham Place, Phayathai, Bangkok
230
400
No. of Rooms
LUXURY HOTEL SUPPLY IN BANGKOK
2014F
37
Jumeirah Bangkok
Park Hyatt Bangkok
305
222
DIVERSIFICATION OUTSIDE BANGKOK
WITH ITS EXPANSION OUTSIDE OF THAILAND AS WELL AS INCREASING CONTRIBUTION FROM MIXED USE BUSINESSES, MINT IS LESS DEPENDENT ON ITS BANGKOK HOTEL PORTFOLIO. NEVERTHELESS, DESPITE THE OVERSUPPLY OF HOTELS IN BANGKOK, MINT’S BANGKOK HOTEL PORTFOLIO IS STILL SEEING SIGNIFICANT IMPROVEMENT IN REVPAR OF 40% YoY.
38
Hotel Updates
25% 24% 32% 16% 15%
75% 76% 68% 84% 85%
0%
25%
50%
75%
100%
2008 2009 2010 2011 2012
Outside Bangkok
Bangkok
Number of hotel rooms in Bangkok doubled over the past 5 years
26% 28% 25% 14% 14%
74% 72% 75% 86% 86%
0%
25%
50%
75%
100%
2008 2009 2010 2011 2012
Other Hotel & Mixed Use
Bangkok
5,097
4,255 3,951
3,542 3,857
3,389
2,394 2,025 1,788
2,499
66%
56%
51% 51%
65%
0%
20%
40%
60%
80%
0
2,000
4,000
6,000
8,000
2008 2009 2010 2011 2012
0
300
600
900
1,200
1,500
2008 2009 2010 2011 2012
Managed
Owned
No of rooms
Revpar ADR % Occupancy
769 864
1,300
1,518 1,518
However, the contribution in terms of number of rooms in Bangkok significantly declined as the expansion is faster outside of Bangkok
Despite the oversupply of hotels in Bangkok, MINT’s Bangkok hotel portfolio improves significantly, with 2012 revpar increase of 40% YoY
The revenue contribution also significantly declined over the five years, in line with the contribution from number of rooms
THB Occupancy
39
1Q13 PERFORMANCE OF THE RESTAURANT BUSINESS CONTINUED TO EXHIBIT STRONG AND STABLE GROWTH, WITH REVENUE GROWTH OF 12% AND NET PROFIT GROWTH OF 25% YoY
FINANCIAL PERFORMANCE - RESTAURANT
Revenue
EBITDA
NPAT
EBITDA Margin
Net Margin
THB million
3,451 3,237 3,097 3,406
3,878
583 549 515 592
716
328 264 277
312
409
Key Highlights
Most brands continued to exhibit strong and positive same-store-sales growth in 1Q13, from successful marketing strategies and robust domestic consumption;
Same-store-sales growth, together with outlet expansion of 11%, translated into strong total-system-sales growth of 14.6% in 1Q13;
With the consolidation of Riverside, the food concept acquired in December 2012, the China business has turned around and became profitable at the operation level in 1Q13;
EBITDA & net profit margin expanded, attributable to operating leverage, increasing franchise fees and positive EBITDA of China business in 1Q13 compared to negative EBITDA in 1Q12.
Restaurant Update
1Q12
9.5%
16.9% 17.0%
2Q12
8.2%
16.6%
3Q12
8.9% 9.1%
4Q12
17.4%
+12% YoY
+23% YoY
18.5%
Note: Net profit in 2012 has been restated per the new accounting policy on current and deferred income taxes (IAS 12)
+25% YoY
10.5%
1Q13
40
FOOD AND PAPER COSTS AS A PERCENTAGE OF SALES HAS COME DOWN OVER THE PAST FIVE YEARS AS A RESULT OF CONTINUED EFFECTIVE COST MANAGEMENT PROGRAM.
EFFECTIVE MANAGEMENT OF FOOD COSTS
35.9%
34.1%
34.9% 35.2% 35.2%
33.3%
33.0%
33.9%
34.5%
33.2% 33.2% 33.0%
34.0%
32.7%
31.8% 31.7%
32.0%
31.5%
31.7% 31.5%
30.9%
30%
31%
32%
33%
34%
35%
36%
1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13
% of Food & Paper Costs to Sales
Fixed Long-Term Contract
Prices
Menu-Mix Re-Engineering
Supply Chain Management
Maximization of FTA Benefit
Pro-Active Inventory
Management
Strategy
Note: Food and paper costs as a percentage of sales rose in first quarter of every year as a result of “Buy-one-get-one-free” promotional campaign launched in March of every year to celebrate the anniversary of The Pizza Company
Restaurant Update
41
RESTAURANT PERFORMANCE
Brand SSS (%) TSS (%)
1Q13 1Q12 1Q13 1Q12
The Pizza Company 3.9% 7.4% 7.2% 18.5%
Swensen’s 9.6% 15.7% 15.4% 25.7%
Sizzler 2.5% 5.5% 2.8% 10.8%
Dairy Queen 0.2% 32.2% 17.6% 43.6%
Burger King 9.4% 6.3% 12.7% 7.6%
The Coffee Club 3.2% 4.3% 10.6% 13.5%
Ribs & Rumps -6.6% N/A 12.5% N/A
Thai Express 5.5% 2.8% 9.3% 6.7%
Average 4.1% 7.6% 14.6% 16.2%
Average Thailand 5.6% 10.9% 10.8% 20.2%
Restaurant Update
RESTAURANT OUTLETS – 1Q13
Brand No. of outlets No. of outlets
Total Equity Franchise Thailand International
The Pizza Company 195 98 258 35 293
Swensen’s 122 163 262 23 285
Sizzler 45 - 39 6 45
Dairy Queen 241 76 317 - 317
Burger King 29 - 29 - 29
The Coffee Club 26 297 8 315 323
Ribs & Rumbs 9 3 - 12 12
Thai Express 55 10 - 65 65
Riverside 22 - - 22 22
Others 15 - 15 - 15
Total 759 647 928 478 1,406
42
Restaurant Update
BEIJING RIVERSIDE & COURTYARD
AS PART OF MINT’S FIVE-YEAR STRATEGY, IN ADDITION TO ORGANIC GROWTH, MINT ALSO LOOKS FOR ACQUISITION OPPORTUNITIES. MINT ACQUIRED BEIJING RIVERSIDE AT THE END OF 2012 WITH PLANS TO EXPAND BOTH IN ITS HOME COUNTRY, CHINA, AND POTENTIALLY INTO OTHER COUNTRIES.
43
Key Development
Basic Information
• Established in 2005
• Distinctive chain of casual-concept restaurants in China, specializing in Sichuan barbecue fish
• 21 restaurants across Beijing and Shanghai
Ownership
• Initial 49% stake, with MINT holding the majority of the Board seats
• Another 11-30% stake in Riverside in two years, subject to a performance hurdle
• The remaining shares of Riverside will continue to be held by the original founders
Investment Rationales
• China is a country of vast opportunities that arise from its rapidly growing middle class, accumulation of wealth, and increasing domestic consumption
• Riverside is already profitable, and therefore will bring in immediate earnings contribution to MINT
• Back office of the China operations will be combined for higher efficiency
• The acquisition will be a turning point MINT’s China food business operationally and financially in 2013
952
MINT Restaurant Revenues
100% of Riverside
13,192
2012 Comparative Revenues
• Although contribution from Riverside is small initially, it is expected to become more meaningful as aggressive pace of growth is expected THB
Million
267 562 487
683 751 1,097
1,097
46
55
(131)
61
1,054
1,054 1,054
4.8%
19.0% 20.8% 22.9%
26.3%
31.3% 31.3%
-10%
0%
10%
20%
30%
40%
-500
0
500
1,000
1,500
2,000
2,500
3,000
2006 2007 2008 2009 2010 2011 2012
Investment Cost
Unrealized gain (loss)
Gain from investment reclassification
% shareholding
44
S&P OPERATES A CHAIN OF RESTAURANTS AND BAKERY SHOPS WITH OVER 400 OUTLETS IN 7 COUNTRIES PRODUCING AND DISTRIBUTING FOOD AND BAKERY PRODUCTS UNDER THE S&P BRAND. SINCE 3Q11, S&P’S PERFORMANCE HAS BEEN RECOGNIZED THROUGH EQUITY ACCOUNTING METHOD. S&P’S 1Q13 MARGINS HAVE BEEN PRESSURED FROM INCREASED LABOR COSTS, RENTAL AND ADVERGISING EXPENSES.
CONTINUED & STRENGTHENING PARTNERSHIP WITH S&P
Shareholding Structure
MINT’s Investment in S&P
THB million
313
617 744
1,805
Revenue
EBITDA
NPAT
EBITDA Margin
Net Margin
THB million
2,151
356 617
2010 2008 2009
4,437 4,761 5,340
5,941 6,653
583 674 817
963 1,197
13.1% 14.2% 15.3%
225 293 383 454
708
5.1% 6.2% 7.2%
16.2%
7.6%
2011
+12% YoY
+24% YoY
+56% YoY 2,151
Restaurant Update
18.3%
10.6%
2012
Sila-on & Riva
Families 39%
MINT 31%
Others 30%
1,516 1,638
+8% YoY
-19% YoY
289 235
-19% YoY
169 136
11.1%
1Q12
8.3%
1Q13
19.1% 14.3%
45
Retail Trading Update
1Q13 REVENUE OF RETAIL TRADING & CONTRACT MANUFACTURING INCREASED BY 22% YoY DUE PARTLY TO THE IMPROVED RETAIL TRADING OPERATIONS AND PARTLY TO THE LOW-BASED COMPARISON IN 1Q12 DUE TO THE FLOODS. EXCLUDING INSURANCE CLAIMS FROM FLOOD RECEIVED IN 1Q12, NET PROFIT INCREASED SIGNIFICANTLY BY OVER 6 TIMES.
FINANCIAL PERFORMANCE – RETAIL TRADING & CONTRACT MANUFACTURING
Revenue
EBITDA
NPAT
EBITDA Margin
Net Margin
THB million
789 807 911 905 965
103
36
81 69
107
53
-0.2
32 38
56
Key Highlights
13.1%
6.7%
1Q13 revenue from retail trading increased by 21% YoY, primarily from the fashion business, despite the decline in number of cosmetic points of sale. Retail trading business started to see a turn around with same-store-sales growth turning positive since 4Q12;
1Q13 revenue from contract manufacturing increased by 25% YoY, as the NMT plant was fully operational in 1Q13 compared to partially operational in 1Q12 because of the flood in 2011;
As a result, EBITDA and net profit margins of retail trading & contract manufacturing business increased significantly in 1Q13. Excluding insurance claim received in 1Q12, EBITDA increased by 88% and net profit increased at higher rate by over 6 times YoY.
1Q12
4.5%
0.0%
2Q12
8.9%
3.5%
3Q12
7.6%
4.2%
4Q12
+22% YoY
+4% YoY
11.1%
+4% YoY
5.8%
1Q13
Note: Net profit in 2012 has been restated per the new accounting policy on current and deferred income taxes (IAS 12)