Anantara Phuket Layan WRAP Melbourne
Company Presentation - Aug 2014
Anantara Phuket LayanWRAP Melbourne
Company Presentation - Aug 2014
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
Agenda 1H14 Performance Recap & Recent Updates
Restaurant Business
Hotel & Mixed-Use Business
Other Important Information
SIFU Hong Kong Master Ribs in Singapore
1H14 Performance Recap
Royal Livingstone Hotel, Zambia Gaborone Sun Hotel & Casino, Botswana
Kalahari Sands Hotel & Casino, Namibia Lesotho Sun Hotel & Casino, Lesotho
5
CONTINUED GROWTH WITH DIVERSIFICATION MINT REPORTED 1H14 NET PROFIT OF THB 2.0 BILLION, AN 11% INCREASE YoY, DEMONSTRATING THE BENEFIT OF MINT’S DIVERSIFICATION AND INTERNATIONAL EXPANSION STRATEGY, AS STRONG PERFORMANCE OF INTERNATIONAL OPERATIONS MITIGATED THE IMPACT OF SLOWDOWN IN TOURIST ARRIVALS AND DOMESTIC CONSUMPTION IN THAILAND. NET PROFIT GROWTH WAS DUE TO BOTH HOSPITALITY AND RESTAURANT BUSINESSES, TOGETHER WITH THE GAIN ON FAIR VALUE ADJUSTMENT OF INVESTMENT IN SERENDIB IN SRI LANKA.
12,000
14,000
16,000
18,000
20,000
1H13 Hotel & Mixed-Use Restaurant Retail Trading 1H14
17,888
19,753
THB Million
1,200
1,400
1,600
1,800
2,000
2,200
1H13 Hotel & Mixed-Use Restaurant Retail Trading 1H14
THB Million
1,838
2,037
+11% YoY
+10% YoY
REVENUES
NET PROFIT
1H14 Performance Recap
Excl one-time gain+7% YoY
6
INTERNATIONAL PRESENCE
WITH SOLID DIVERSIFICATION STRATEGY, MINT’S PRESENCE IS NOW IN 33 COUNTRIES ACROSS ITS HOSPITALITY AND RESTAURANT BUSINESSES.
MINT’s Footprint
Egypt
Restaurant
Combination
Hotel
REVENUE CONTRIBUTION
87%68% 62% 55%
13%32% 38% 45%
0%
25%
50%
75%
100%
2008 2013 1H14 2018F
International
Thailand
Restaurant Business
Basil by ThaiExpress in Singapore
8
RECENT UPDATES – RESTAURANT
MINT CONTINUES TO INVEST IN ITS FUTURE, POISED FOR SOLID GROWTH GOING FORWARD.
Restaurants Updates
Invested 50% to operate BreadTalk’s bakery operations in Thailand
MINT’s investment size: THB 103 million for the 50% investment
BreadTalk Group’s support: as brand owner, and provide technical know-how
MINT’s support: its established platform in Thailand, including supply chain management, property management, outlet expansion, franchising and legal support
With the combination of BreadTalk’s strong brand recognition and MFG’s profound knowledge of Thailand together with its operational excellence and customer service, there is a vast growth potential for BreadTalk operation in Thailand over the next few years
The plan is to actively grow Breadtalk bakery outlets from existing 23 outlets, initially with company-owned business model and later with franchised model
The joint-venture is expected to be established by the end of September, after fulfilling the customary conditions precedent
Invested 70% in Swensen’s operations in India
This resulted in conversion of the existing 4 outlets from franchised to 70%-owned outlets
The existing franchisee, Devyani International, maintains the remaining 30% shareholding
Opened the first franchised Coffee Club outlets in Bali & Malaysia
The two outlets marked The Coffee Club’s entrance into the countries.
9
RECENT UPDATES – CONT’D
MINT CONTINUES TO INVEST IN ITS FUTURE, POISED FOR SOLID GROWTH GOING FORWARD.
Restaurants Updates
Launched “Thai Cuisine Academy”
Partnership between three reputable parties: • MINT • S&P Syndicate • Iron Chef Chumpon Jangprai
The Academy will help strengthen the talent pool for restaurants under Minor Food Group, Minor Hotel Group, and others
The courses range from one-month to 9-month courses, for both profession and non-professional individuals
The school is located in the heart of Thonglor, and is able to graduate over 100 students and professional chefs per year
Launched two new concepts under Singapore Hub:
SIFU Hong Kong Master Ribs
Basil by ThaiExpress
The initiative is to respond to the quick change in consumer taste in Singapore and ultimately to increase customer count and overall sales
10
1H14 REVENUE OF THE RESTAURANT BUSINESS INCREASED BY 12% YoY, PRIMARILY FROM THE OUTLET EXPANSION OF 12%. 1H14 NET PROFIT GREW BY 4%, A SMALLER MAGNITUDE THAN REVENUE INCREASE MAINLY AS A RESULT OF CONTRACTION OF DOMESTIC CONSUMPTION WHICH LED TO LOWER OPERATING LEVERAGE AMIDST POLITICAL EVENTS IN 1Q14. NONETHELESS, THAILAND HUB, THE BIGGEST CONTRIBUTER TO THE RESTAURANT BUSINESS, SAW A TURNAROUND IN SAME-STORE-SALES GROWTH AND NORMALIZED MARGINS IN 2Q14.
FINANCIAL PERFORMANCE - RESTAURANT
Restaurants Updates
Key Highlights
3,878
3,725 3,742
3,997
4,307 4,230
716 634 648
761 708 725
409
308 323
461
363 379
1H14 total-system-sales exhibited strong growth
of 10.8%, primarily from the outlet expansion of 12% YoY;
Riverside, Burger King and Ribs & Rumps reported total-system-sales growth of over 20% in 1H14;
1H14 same-store-sales was flat YoY. Same-store-
sales in 2Q14 was 1.5%, as Thailand Hub witnessed a turnaround amidst improving
consumer confidence and consumption, together with new marketing initiatives;
Australia Hub reported positive same-store-sales
growth, with net profit rising 9% YoY in 1H14;
Although Singapore Hub reported negative same-
store-sales growth in 1H14, its net profit increased significantly by 37% YoY;
China Hub saw improved operational
performance YoY in 1H14, driven primarily by strong performance of Riverside;
EBITDA & net profit margins declined in 1H14 YoY, attributable to lower operating leverage of Thailand Hub from the negative same-store-sales
growth during 1Q14. Nonetheless, EBITDA and net profit margins saw improving trend in 2Q14.
18.5%
10.5%
1Q13
8.3%
2Q13
17.0% 17.3%
8.6%
3Q13
Revenue
EBITDA
NPAT
EBITDA Margin
NetMargin
THB million
+14% YoY
+14% YoY
19.0%
+23% YoY
11.5%
4Q13 1Q14
16.4%
8.4%
17.1%
2Q14
9.0%
7,603
8,537
1,3501,433
716 742
+12% YoY
+6% YoY
+4% YoY
17.8% 16.8%
1H13
9.4%
1H14
8.7%
11
RESTAURANT INTERNATIONAL FOOTPRINT MINT OPERATES FOUR RESTAURANT HUBS: THAILAND, SINGAPORE, AUSTRALIA AND CHINA. MINT’S RESTAURANT PRESENCE IS NOW IN 20 COUNTRIES ACROSS THE REGION, OPERATING OWNED, FRANCHISED AND A COMBINATION OF BOTH BUSINESS MODELS. MINT CONTINUES TO LOOK FOR OPPORTUNITIES TO EXPAND, ESPECIALLY IN THESE EXISTING MARKETS THAT MINT OPERATES.
Restaurants Updates
Egypt
Franchised
Combination
Owned
81% 70% 67%56%
19% 30% 33%44%
0%
25%
50%
75%
100%
2008 2013 1H14 2018F
International
Thailand
REVENUE CONTRIBUTION
Hub
12
RESTAURANT PERFORMANCE
2Q14 TOTAL-SYSTEM-SALES OF THE RESTAURANT BUSINESS CONTINUED TO GROW BY 12.4%, DUE TO SAME-STORE-SALES GROWTH OF 1.5% AND OUTLET EXPANSION OF 12% YoY. 2Q14 SAME-STORE-SALES GROWTH BOUNCED BACK TO POSITIVE TERRITORY UPON PROACTIVE MARKETING INITIATIVES, TOGETHER WITH IMPROVING SENTIMENT AND DOMESTIC CONSUMPTION IN THAILAND.
Restaurants Updates
2007 2013 2Q14 2018F
Same-Store-Sales Growth Total-System-Sales Growth
No. ofOutlets
2007 2013 2Q14 2018F
35%
65%7%
93%
47%
53%676
2,625
47%
53%
18%
82%
46%
54%
1,592
676
2,625Franchised
Owned
1,544
1,544
48%
52%
1,592
International
Thailand +12% YoY
+12% YoY
35%
65%
SSS & TSS GROWTH
1,544
RESTAURANT OUTLETS BY GEOGRAPHY
RESTAURANT OUTLETS BY OWNERSHIP
4.1%
1.1%0.0%
0.9%
-1.8%
1.5%
14.6%13.9% 13.2% 14.3%
9.4%
12.4%
-5%
0%
5%
10%
15%
20%
1Q13 2Q13 3Q13 4Q13 1Q14 2Q14
1,406 1,419 1,464 1,568 1,592
13
THAILAND HUB
Restaurants Updates
THAILAND REMAINS THE MAJOR REVENUE AND PROFIT CONTRIBUTOR TO THE RESTAURANT BUSINESS. INNOVATIVE PRODUCTS AND SERVICES, PROACTIVE MARKETING INITIATIVES, AS WELL AS EFFICIENT COST CONTROL PROGRAMS HAVE AFFORDED MINT’S RESTAURANT BUSINESS TO REMAIN IN THE FOREFRONT OF THE CASUAL DINING RESTAURANT INDUSTRY IN THE COUNTRY.
Same-Store-Sales Growth Total-System-Sales Growth
THAILAND’S SSS & TSS GROWTH POISED FOR GROWTH
-5%
0%
5%
10%
15%
20%
1Q13 2Q13 3Q13 4Q13 1Q14 2Q14
1H14 REVENUE CONTRIBUTION
67%33%
ThailandOthers
Restructuring of The Pizza Company
Same-store-sales growth rebounded in 2Q14 as a result of more
proactive marketing initiatives, as well as improving domestic consumption as the political climate become more stable.
Consequently, with continued outlet expansion, total-system-sales growth also surged to 15% in 2Q14.
MINT continues to launch innovative products and services to
maintain the leadership position in the market.Swensen’s new Sundae
Sizzler’s new Salad BarBurger King’s Breakfast Menu
The Pizza Company’s Pizza Roll
In addition to organic outlet expansion, Minor Food Group always
looks for opportunities to add new concepts.
Dairy Queen’s Blizzard
JV with Breadtalk in Thailand
Launched Noodle Bar & Thai
Express in Phuket
14
SINGAPORE HUB
Restaurants Updates
SINGAPORE HUB IS THE SECOND BIGGEST REVENUE AND NET PROFIT CONTRIBUTOR OF THE RESTAURANT BUSINESS. ITS NET PROFIT HAS SEEN IMPRESSIVE GROWTH DESPITE NEGATIVE SAME-STORE-SALES GROWTH IN 1Q14 & 2Q14 BECAUSE OF THE EFFECTIVE COST CONTROL. MINT’S SINGAPORE OPERATIONS CONTINUE TO GROW NOT ONLY THROUGH ORGANIC OPERATIONS AND NEW INNOVATIVE CONCEPTS, BUT ALSO THROUGH EXPANSION OF ITS BRANDS IN OTHER COUNTRIES.
SINGAPORE’S SSS & TSS GROWTH PROFITABILITY TO REMAIN STRONG
-10%
-5%
0%
5%
10%
15%
20%
1Q13 2Q13 3Q13 4Q13 1Q14 2Q14
1H14 REVENUE CONTRIBUTION
18%
82%
Singapore
Others
Same-Store-Sales Growth
Same-store-sales growth was negative in 1H14 because of:
• Further expansion of Poulet, the Singapore Hub’s sub-brand, in its second year of operation, and
• Changing consumer taste which resulted in intensified competition.
Total-system-sales was positive as a result of outlet expansions, which more than offset the negative same-store-sales growth effect.
Total-System-Sales Growth
The Singapore Hub’s net profit continued to report impressive
growth as a result of effective cost control, despite the negative same-store-sales growth.
+44%
+37%
2Q13 2Q14 1H13 1H14
2Q Net Profit 1H Net Profit
The Singapore Hub continues to ensure profitability of the unit
through:• Continuous change of its menus;
• Launch of new concepts: – 2012: Poulet– 2013: Penang Street
– 2014: Basil by ThaiExpress & SIFU Hong Kong Bunnery;• Effective cost control.
Poulet Penang Street SIFU
15
AUSTRALIA HUB
Restaurants Updates
ALTHOUGH AUSTRALIA HUB CONTRIBUTES ONLY 1% TO THE RESTAURANT BUSINESS’S REVENUES, IT CONTRIBUTES 11% TO THE NET PROFIT, AS THE AUSTRALIA HUB’S PERFORMANCE IS RECOGNIZED AS SHARE OF PROFIT OF INVESTMENTS IN JOINT VENTURE UNDER EQUITY ACCOUNTING. AUSTRALIA HUB IS THEREFORE THE THIRD LARGEST PROFIT CONTRIBUTOR TO THE RESTAURANT BUSINESS.
AUSTRALIA’S SSS & TSS GROWTH EXPANSION INTACT
0%
5%
10%
15%
1Q13 2Q13 3Q13 4Q13 1Q14 2Q14
1H14 REVENUE CONTRIBUTION
1%
99%
Australia
Others
Same-Store-Sales Growth Total-System-Sales Growth
Australia provides stable same-store-sales and total-system-sales
growth for the group, primarily attributable to the established Coffee Club operations.
In addition to growing The Coffee Club in its established home
markets, Australia and New Zealand, the Australia Hub is looking to expand the brand in other parts of the region:
An effort to turn around Ribs & Rumps is another main focus of the
Australia Hub: • Many new marketing initiatives are being launched, including
“Buy one get one free” offer in April / May, and new Express Lunch Menu;
• Back of house process is being reviewed to focus on increasing productivity, reduction of costs and expenses, and improving
speed of service.
Thailand New Caledonia
&China
Egypt Maldives Malaysia&
Indonesia
2009 2010 2011 2012 2013 2014
16
CHINA’S SSS & TSS GROWTH GROWTH PLANS IN PLACE
CHINA HUB
Same-Store-Sales Growth Total-System-Sales Growth
Restaurants Updates
-10%
0%
10%
20%
30%
40%
1Q14 2Q14
CHINA HUB CONTRIBUTES 12% OF RESTAURANT REVENUES, WHILE IN TERMS OF NET PROFIT, ITS OPERATIONS HAVE TURNED AROUND AND WAS BREAK-EVEN IN 2013. WITH RIVERSIDE AS THE SUCCESSFUL LOCAL CONCEPT AND SIZZLER’S UNIQUE POSITION AS A WESTERN STEAK HOUSE CHAIN, TOGETHER WITH VAST POTENTIAL IN THE CONSUMPTION SPACE IN THE COUNTRY, MINT AIMS FOR CHINA TO BECOME A MEANINGFUL CONTRIBUTOR IN THE FUTURE.
1H14 REVENUE CONTRIBUTION
12%
88%China
Others
Total-system-sales growth of China operations continued to be
strong. Active outlet expansion of the Riverside brand since MINT’s acquisition at the end of 2012 more than offset negative same-store-
sales growth effect.
The objective going forward is to expand outlets under Riverside and
Sizzler brands in China, after having closed down 15 The Pizza Company outlets during 2008-2014.
Historical Outlet Expansion in China
27 24 21 22
35 42 42
55
2008 2009 2010 2011 2012 2013 1H14 2014F
While short-term goal is to increase the scale of operations by
increasing the number of outlets, the medium to long-term goal is to improve profitability of the operations to be comparable to other
hubs.
Hotel & Mixed-Use Business
Radisson Blu Hotel, Maputo
18
RECENT UPDATES – HOTEL & MIXED-USE
MINT CONTINUES TO INVEST IN ITS FUTURE, POISED FOR SOLID GROWTH GOING FORWARD.
Full-opening of Anantara Phuket Layan in July 2014 Launch of Oaks’ WRAP on Southbank in Melbourne in May 2014
Acquisition of 49% of Rani Minor Holding II to own hotel & mixed-use project in Maputo, Mozambique
The project consists of: • Radisson Blu Hotel: 154-key hotel (currently in operation) • Residential Tower: 187-key , 19,466 net sq.m., 18-storey tower, majority of which is for rental (under construction, expected to complete by
the end of 2015) • Office Tower: 20,926 net sq.m., 21-storey tower (under construction, expected to complete by the end of 2015)
The project is within 5 minutes of Maputo CBD, facing the renowned Maputo Bay and fronting Avenida Da Marginal, one of the city’s main arterial raods
The project is MINT’s fifth property in Mozambique, all of which are under collaboration with Rani Investments. This completes MINT’s expansion in the country, from the north all the way to the south
Investment size is USD 101 million for the 49% stake.
Anantara Bazaruto
Pemba
Matemo
Medjumbe
Maputo Project
Radisson Blu Hotel Office Tower Residential Tower
Hotel Updates
19
RECENT UPDATES – HOTEL & MIXED-USE – CONT’D
MINT CONTINUES TO INVEST IN ITS FUTURE, POISED FOR SOLID GROWTH GOING FORWARD.
Acquisition of 8 hotels with over 1,300 rooms in 5 countries in Africa from Sun International
Hotel Updates
Kenya
Tanzania
Mozambique Zambia
Royal Livingstone Hotel
Zambezi Sun Resorts
Zambia (50%)
Namibia
Namibia (80%) Kalahari Sands Hotel & Casino
Botswana
Lesotho Lesotho Sun Hotel & Casino Maseru Sun
Lesotho (37.5%)
Royal Swazi Spa Valley Ezulwini Sun (Lugogo Sun) Swaziland (40.5%)
Swaziland
The investment size is R663.6 million (USD 62.4 million)
Investment rationales:
• The investment allows MINT to expand its footprint in the southern part of Africa and will complement the hotel business’s current East Africa safari and beach offerings through the Elewana and the Mozambican properties.
• MINT can benefit from Africa’s growth potential, both in terms of economic growth and the untapped travel and tourism
• The scale allows MINT to develop a platform with operational efficiency within the region
The 7 hotels, with the exception of Royal Livingstone Hotel, will be rebranded into AVANI. The renowned Royal Livingstone Hotel will be marketed through Anantara’s distribution channels
The transaction is expected to close in 4Q14
Gaborone Sun Hotel & Casino
Botswana (64%)
* Note: the percentage depicts MINT’s effective shareholdings in the properties
20
FINANCIAL PERFORMANCE – HOTEL & MIXED-USE 1H14 REVENUE OF HOTEL & MIXED-USE BUSINESS GREW BY 11%, PRIMARILY AS A RESULT OF GROWTH OF MANAGEMENT CONTRACT, OAKS, OWNED HOTELS AND ANANTARA VACATION CLUB. 1H14 NET PROFIT INCREASED BY 18%, LED BY HIGHER PROFITABILITY OF OWNED HOTELS IN 2Q14 AND ANANTARA VACATION CLUB ON THE BACK OF HIGHER OPERATING LEVERAGE AND EFFECTIVE COST CONTROL, TOGETHER WITH AN INCREASE IN CONTRIBUTION FROM HIGHER-MARGIN MANAGEMENT CONTRACT BUSINESS.
Owned hotels: 42% of 1H14 hotel and mixed-use revenues – saw revenue growth of 1% although system-wide 1H14 RevPar dropped by 5% YoY (organic RevPar -3%);
Oaks: 28% of 1H14 hotel and mixed-use revenues – reported 1H14 revenue growth of 15% while RevPar declined by 2%, from a slight drop in occupancy;
Management contracts: 7% of 1H14 hotel and mixed-use revenues – reported increase in 1H14 revenue by 185%, from the outstanding performance of the Maldives hotels, increase in number of rooms by 56% YoY, and system-wide 1H14 RevPar increase of 49% (organic RevPar increase of 16%);
Real estate: 17% of 1H14 hotel and mixed-use revenues – saw flat 1H14 revenues YoY, as increase in revenues from Anantara Vacation Club offset the decline of revenues from residential sales;
Net profit exhibited growth at a higher rate than revenues as a result of higher operating leverage and effective cost savings in 2Q14, together with the one-time gain on fair value adjustment of investment in Serendib in Sri Lanka of THB 69 million (after tax);
Excluding the one-time fair value adjustment, net profit increased by 12%.
Key Highlights
Hotel Updates
Revenue
EBITDA
NPAT
EBITDA Margin
NetMargin
THB million4,794
3,690 4,312
5,181 5,322
4,083
1,727
665 967
1,847 1,761
892
945
98
354
1,053 1,003
229
1Q13
19.7%
36.0% 18.0%
2Q13
2.7%
22.4%
8.2%
3Q13
35.7%
20.3%
4Q13
+11% YoY
+34% YoY
+134% YoY
1Q14
33.1%
18.8%
21.8%
2Q14
5.6%
+11% YoY
8,484
9,406
+11% YoY
2,3922,653
28.2% 28.2%
1,0431,232
+18% YoY
1H13
12.3%
1H14
13.1%
21
IN RECENT YEARS, MINT HAS IMPLEMENTED A SOLID DIVERSIFICATION STRATEGY. TODAY, MINT OPERATES HOTELS AND SPAS IN COMBINATION OF INVESTMENT, JOINT-VENTURE AND MANAGEMENT BUSINESS MODELS IN 23 COUNTRIES, WITH ANOTHER SIX COUNTRIES IN THE PIPELINE OVER THE NEXT THREE YEARS.
HOTEL & MIXED-USE - INTERNATIONAL PRESENCE
Hotel Updates
Egypt
Management
Combination
Investment
New Destinations in Pipeline
94%
60%49% 46%
6%
40%51% 54%
0%
25%
50%
75%
100%
2008 2013 1H14 2018F
International
Thailand
REVENUE CONTRIBUTION
Hub
22
SYSTEM-WIDE HOTEL OPERATIONS 2Q14 SYSTEM-WIDE REVPAR INCREASED BY 10% YoY DESPITE THE IMPACT OF DOMESTIC POLITICAL EVENTS. EXCLUDING BANGKOK HOTELS, SYSTEM-WIDE REVPAR ROSE BY A HIGHER MAGNITUDE OF 19%. HOTELS IN THAILAND’S MAJOR TOURIST DESTINATIONS OUTSIDE OF BANGKOK CONTINUED TO SEE GROWTH IN REVPAR, WHILE OVERSEAS HOTELS, THE MAJORITY OF WHICH ARE ANANTARA HOTELS, WITNESSED EVEN STRONGER PERFORMANCE WITH REVPAR INCREASING BY OVER 50% YoY.
Hotel Updates
THB
THB
NUMBER OF HOTEL ROOMS ADR
OCCUPANCY REVPAR
THB
+10% YoY
Organic excl FX Impact-1% YoY
0
3,000
6,000
9,000
12,000
15,000
1Q13 2Q13 3Q13 4Q13 1Q14 2Q14
MLR / Oaks
Managed
Joint-venture
Owned
+24% YoYNo of Rooms
10,529 10,62411,740
12,723 13,128
* Note: Hotel Statistics include Oaks Hotel & Resort
73%
66%69%
71%
67%
60%
50%
60%
70%
80%
90%
1Q13 2Q13 3Q13 4Q13 1Q14 2Q14
-5% YoY
Organic-4% YoY
5,937
4,998 5,105
6,098
7,012
6,004
2,000
4,000
6,000
8,000
1Q13 2Q13 3Q13 4Q13 1Q14 2Q14
4,358
3,2803,537
4,3554,707
3,618
1,000
2,000
3,000
4,000
5,000
1Q13 2Q13 3Q13 4Q13 1Q14 2Q14
+20% YoY
Organic excl FX Impact+5% YoY
13,179
23
OWNED-HOTELS OPERATIONS OWNED HOTELS REMAINED A MAJOR REVENUE CONTRIBUTOR IN 1H14 WITH 42% CONTRIBUTION OF HOTEL & MIXED-USE REVENUES. ALTHOUGH THE POLITICAL INSTABILITY IN THAILAND PUT PRESSURE ON OVERALL OWNED HOTELS OCCUPANCY, PARTICULARLY THAT OF BANGKOK HOTELS, MINT WAS ABLE TO RAISE RATES BY 12% ON AVERAGE, RESULTING IN REVPAR DECLINE OF MERELY 7% YoY. DESPITE THE DECLINE IN REVPAR, WITH ADDITION OF NEW HOTEL ROOMS, REVENUES OF OWNED HOTEL HELD UP WELL.
Hotel Updates
THB
THB
+12% YoY
42%
58% Owned-hotelsOther hotels
& mixed-use
1H14 REVENUE CONTRIBUTION
No of Rooms
Organic excl FX Impact+10% YoY
NUMBER OF HOTEL ROOMS ADR
OCCUPANCY REVPAR
THB-7% YoY
Organic excl FX Impact-7% YoY
2,494 2,388 2,4272,676 2,753 2,753
1,000
1,500
2,000
2,500
3,000
1Q13 2Q13 3Q13 4Q13 1Q14 2Q14
+ Hoi An+ Quy Nhon
- Anantara BophutSamui(reno)
+Anantara AnkorCambodia
+Anantara Bophut
+Grand Hotel
+Anantara LayanPhuket
+15% YoY
7,275
5,650 5,388
6,957
8,570
6,301
2,000
4,000
6,000
8,000
10,000
1Q13 2Q13 3Q13 4Q13 1Q14 2Q14
78%
61%66%
69%
64%
51%
40%
50%
60%
70%
80%
90%
1Q13 2Q13 3Q13 4Q13 1Q14 2Q14
-10% YoY
Organic-10% YoY
5,687
3,446 3,553
4,7845,497
3,199
0
2,000
4,000
6,000
1Q13 2Q13 3Q13 4Q13 1Q14 2Q14
24
OWNED-HOTELS PERFORMANCE BY GEOGRAPHY IN 1H14, BANGKOK HOTELS ACCOUNT FOR ONLY 10% OF TOTAL HOTEL & MIXED-USE REVENUES (5% OF TOTAL MINT REVENUES). SYSTEM-WIDE REVPAR OF OWNED HOTELS OUTSIDE OF BANGKOK CONTINUED TO GROW AT THE RATE OF 4% IN 2Q14, PRIMARILY AS A RESULT OF BETTER PERFORMANCE AND CHANGE IN HOTEL MIX TOWARDS HIGHER-REVPAR HOTELS OF OVERSEAS PORTFOLIO. DESPITE THE POLITICAL UNCERTAINTY, THAILAND PROVINCIAL HOTELS CONTINUED TO SEE REVPAR GROWTH OF 1%.
Hotel Updates
THB
THB
OVERALL EXCL BANGKOK THAILAND PROVINCES
BANGKOK OVERSEAS
THB
14,676
10,0408,340
11,746
15,289
10,98110,396
5,356 5,3807,145
11,058
5,989
71%
53%
65% 61% 72%
55%
0%
20%
40%
60%
80%
0
4,000
8,000
12,000
16,000
1Q13 2Q13 2Q13 4Q13 1Q14 2Q14
10%
90%
Bangkok
hotels
Other hotels & mixed-use
1H14 REVENUE CONTRIBUTION
THB
4,7724,501 4,423
4,917 4,8144,407
3,800
2,7953,064
3,458
2,280 1,796
80%
62%69% 70%
47% 41%
0%
20%
40%
60%
80%
0
1,000
2,000
3,000
4,000
5,000
1Q13 2Q13 2Q13 4Q13 1Q14 2Q14
RevPar -36% YoY RevPar +12% YoY
7,873
5,5355,433
7,367
8,490
6,030
6,190
3,451 3,438
5,160
6,403
3,472
79%
62% 63%
70% 75%
58%
20%
40%
60%
80%
100%
0
2,000
4,000
6,000
8,000
10,000
1Q13 2Q13 2Q13 4Q13 1Q14 2Q14
RevPar +1% YoYTHB
9,042
6,474 6,135
8,348
10,067
7,131
6,977
3,900 3,900
5,655
7,518
4,056
77%
60%64%
68%75%
57%
20%
40%
60%
80%
100%
0
3,000
6,000
9,000
12,000
1Q13 2Q13 2Q13 4Q13 1Q14 2Q14
RevPar +4% YoY
RevParADR% Occupancy
25
OAKS’ OPERATIONS OAKS’ SERVICED-SUITES OPERATIONS PROVIDE THE HOTEL AND MIXED-USE BUSINESS WITH STABLE PERFORMANCE THROUGHOUT THE YEAR, COMPARED TO HOTEL BUSINESS WHICH IS MORE SEASONAL. ALTHOUGH OAK’S REVPAR IN 2Q14 SLIGHTLY DECLINED YoY, ITS REVENUES GREW BY 15% MAINLY FROM ADDITIONAL MLR CONTRACTS WHICH BROUGHT IN 11% MORE ROOMS YoY.
Hotel Updates
THB
+11% YoY
27%
73%
1H14 REVENUE CONTRIBUTION
No of Rooms
AUD
NUMBER OF MANAGED ROOMS ADR
OCCUPANCY REVPAR
3,8253,498
3,6543,923 3,777
3,388
124
118
127
133129
112
100
110
120
130
140
150
0
1,000
2,000
3,000
4,000
5,000
1Q13 2Q13 3Q13 4Q13 1Q14 2Q14
THB
4,8984,635 4,644
4,957 4,966 4,727
158157
161
169 170
156
150
160
170
180
0
2,000
4,000
6,000
1Q13 2Q13 3Q13 4Q13 1Q14 2Q14
5,176 5,3235,576
5,897 5,855 5,906
3,000
4,000
5,000
6,000
1Q13 2Q13 3Q13 4Q13 1Q14 2Q14
28%72% Oaks
Other hotels
& mixed-use
THB+2% YoY
AUDFlat YoY
AUD
78%75%
79% 79%
76%
72%
60%
70%
80%
90%
1Q13 2Q13 3Q13 4Q13 1Q14 2Q14
-3% YoY
THB-3%YoY
AUD-5% YoY
26
MANAGED-HOTELS OPERATIONS IN 1H14, CONTRIBUTION OF MANAGED HOTELS INCREASED TO 7% OF HOTEL & MIXED-USE REVENUES FROM 3% IN 1H13. SYSTEM-WIDE REVPAR OF MANAGED HOTELS PORTFOLIO IN 2Q14 INCREASED BY 60% YoY PRIMARILY FROM THE OUTSTANDING PERFORMANCE OF MALDIVES HOTELS, TOGETHER WITH IMPROVEMENT OF OTHER EXISTING HOTELS AND ADDITION OF NEW HOTELS, PARTICULARLY UNDER PER AQUUM BRAND, WHICH COMMANDS HIGH REVPAR. AS A RESULT, 2Q14 REVENUE FROM MANAGEMENT SERVICES INCREASED BY 88% YoY.
Hotel Updates
THB
7%93%Management
contract
1H14 REVENUE CONTRIBUTION
No of Rooms
Other hotels & mixed-use
NUMBER OF HOTEL ROOMS ADR
OCCUPANCY REVPAR
+56% YoYTHB
2,126 2,1802,946
3,254 3,404 3,404
0
1,000
2,000
3,000
4,000
1Q13 2Q13 3Q13 4Q13 1Q14 2Q14
+ Anantara Xisuang-banna
+ Per AQUUM Huvafenfushi, Desert Palm, Niyama
+ Avani Atrium Bangkok
+ Anantara Al Yamm
+ Anantara Chiang Mai, Al Sahel,The Palm Dubai
- Per AQUUM Niyama
+ Anantara Emei
5,2284,405
5,4836,506
7,7267,234
0
2,000
4,000
6,000
8,000
10,000
1Q13 2Q13 3Q13 4Q13 1Q14 2Q14
+64% YoY
Organic excl FX Impact+20% YoY
60%
51%
55%
62%
57%
50%
40%
50%
60%
70%
80%
1Q13 2Q13 3Q13 4Q13 1Q14 2Q14
-1% YoY
Organic-1% YoY
3,128
2,254
3,011
4,0664,382
3,613
0
1,000
2,000
3,000
4,000
5,000
1Q13 2Q13 3Q13 4Q13 1Q14 2Q14
+60% YoY
Organic excl FX Impact+17% YoY
27
HOTEL EXPANSION PIPELINE
MINT CONTINUES TO IMPLEMENT “ASSET RIGHT” STRATEGY, WHICH IS A COMBINATION OF “ASSET HEAVY” (OWNED & JV) AND “ASSET LIGHT” (MANAGEMENT CONTRACTS & MLRs), DEPENDING ON THE CIRCUMSTANCES AND OPPORTUNITIES. THE BELOW FIGURES ARE BASED ON CURRENT SIGNED PIPELINE WHILE THE FINALIZATION OF ON-GOING DUE-DILIGENCE AND NEW OPPORTUNITIES THAT COME ALONG IN THE FUTURE WILL CERTAINLY ADD TO THE BELOW GROWTH FIGURES.
Hotel Updates
OWNED HOTELS
MANAGED HOTELS
OAKS
2,676 2,753
3,343
3,592
2,000
2,500
3,000
3,500
4,000
2013 2014F 2015F 2016F
+3% +21% +7%
No of Rooms
5,9066,177
6,643 6,843
2,000
3,000
4,000
5,000
6,000
7,000
2013 2014F 2015F 2016F
No of Rooms
+5% +8% +3%
3,2543,645
4,586
6,414
2,000
3,000
4,000
5,000
6,000
7,000
2013 2014F 2015F 2016F
No of Rooms +12% +26% +40%
JOINT VENTURE
896
1,331
2,555 2,555
0
500
1,000
1,500
2,000
2,500
3,000
2013 2014F 2015F 2016F
No of Rooms +49% +92% -
28
Others
HOTEL EXPANSION PIPELINE EXPANSION INSIDE AND OUTSIDE THAILAND WILL CONTRIBUTE TO REVENUE & PROFIT IN COMING YEARS.
Hotel Updates
HOTEL INVESTMENT MANAGEMENT CONTRACTS
2014F • Emei, China (150 rms)
• Doha, Qatar (117 rms)
2015F
• Sanya, China
(122 rms)
• Pinnacle
(40 rms)
• Rivermarque
(149 rms)
• WRAP (73 rms)
Total
• Niyama, Maldives*
Phase 2 (45 rms)
(Per Aquum)
• Amboseli Camp,
Kenya* (16 rms)
(Elewana)
• Layan, Phuket
(77 rms)
• Medjumbe,
Mozambique*
(12 rms)
• Matemo,
Mozambique*
(23 rms)
2016F
* Note: Joint-ventured properties
• The Radisson
Blu, Maputo,
Mozambique*
(154 rms)
• Radius (89 rms)
• Milton (298 rms)
• Carlyle (79 rms)
• Qiandao Lake, China (120 rms)
• Baoting, China (130 rms)
• Guiyang, China (218 rms)
• Salalah, Oman (136 rms)
• Al Akhdar, Oman (123 rms)
• Luang Prabang, Laos (115 rms)
• Kalutara, Sri Lanka
(141 rms)
• Tangalle, Sri
Lanka* (150 rms)
• Bazaruto Island,
Mozambique*
Phase 2 (75 rms)
• Bangkok (249 rms)
• Jimbaran,
Indonesia
(200 rms)
• Nusa Dua,
Bali , Indonesia
(590 rms)
20 Hotels / 2,574 Rooms 28 Hotels / 4,210 Rooms
• Chongqing, China (150 rms)
• Dongguan, China (120 rms)
• Mhinghang , China (300 rms)
• Mahabalipuram, India (130 rms)
• Udaipur, India (70 rms)
• Wayanad, India (95 rms)
• La Chaland, Mauritius (160 rms)
• Al Madina, Oman (120 rms)
• Tozeur, Tunisia (93 rms)
• Pemba, Mozambique* (184 rms) • Barbarons,
Seychelles
(124 rms)
• Qasr Al Sarab,
UAE (99 rms)
• Royal
Livingstone,
Zambia*
(173 rms)
• Ambalangoda, Sri Lanka (80 rms)
• Gaborone Sun, Botswana (196 rms)
• Kalahari Sands, Namibia (173 rms)
• Zambezi Sun, Zambia* (212 rms)
• Lesotho Sun, Lesotho* (158 rms)
• Maseru Sun, Lesotho* (105 rms)
• Royal Swazi, Swaziland* (149 rms)
• Ezulwini Sun, Swaziland* (202 rms)
29
Shanghai
Sanya
Phuket Samui
Bangkok
Bali
PART OF THE REAL ESTATE BUSINESS, ANANTARA VACATION CLUB, WHICH LEVERAGES ON THE ANANTARA BRAND, IS GROWING TO BECOME ANOTHER SIGNIFICANT CONTRIBUTOR TO HOTEL AND MIXED-USE BUSINESS. SALES CONTINUED TO GROW BY 28% IN 2Q14 AND 50% IN 1H14 YoY .
Current Sales Galleries
Current AVC Resorts
REAL ESTATE BUSINESS – ANANTARA VACATION CLUB
Real Estates Updates
Queenstown
17%
83%
1H14 REVENUE CONTRIBUTION
Real estates
Other hotels & mixed-use
China29%
Thailand16%
Singapore13%
Hong Kong12%
Malaysia9%
Australia3%
Japan2%
Indonesia2%
USA1%
UK1% Others
12%
As at Jun 2014
AVC MEMBERS
22 2546
106 106
500
0
100
200
300
400
500
2010 2011 2012 2013 2Q14 2018F
No. of Units 10 Destinations
PLANNED PIPELINE OF INVENTORIES
30
REAL ESTATE BUSINESS - RESIDENTIAL NEXT RESIDENTIAL PROJECT IN THE PIPELINE IS THE RESIDENCES BY ANANTARA, PHUKET, TO BE LAUNCHED IN 2H14. MINT HAS ALSO ENTERED INTO A PARTNERSHIP TO DEVELOP SERVICE SUITES ADJACENT TO ANANTARA CHIANG MAI, AND WILL ADD ADDITIONAL RESIDENTIAL CLUB SUITES IN PHUKET. ADDITIONAL RESIDENTIAL PROJECTS ADJACENT TO ANY OF THE HOTEL PROPERTIES ARE BEING CONSIDERED TO ENSURE CORE PIPELINE OF MINT’S REAL ESTATE BUSINESS, INCLUDING ONE IN TANGALLE, SRI LANKA.
Situated on Layan beach on the preferred west coast of Phuket. Each of the 15 individually designed residences benefits from one of Phuket’s most picturesque bays, and represents the most significant new luxury development in Phuket.
15 uniquely designed pool villas
Up to 8 bedrooms, each with 21 metre private infinity pool
1,313 to 2,317 sq.m. of built-up area
Due to be launched in 2H14
THE RESIDENCES BY ANANTARA, LAYAN, PHUKET
Real Estates Updates
1H14 REVENUE CONTRIBUTION
Sold 92%
Inventory 8%
Sold 71%
Inventory 29%
ESTATES SAMUI ST. REGIS RESIDENCES
17%
83%
Real estates
Other hotels & mixed-use
Other Important Information
32
1H14 REVENUE OF RETAIL TRADING & CONTRACT MANUFACTURING INCREASED BY 1% YoY FROM BETTER PERFORMANCE OF RETAIL TRADING BUSINESS. NET PROFIT AND NET PROFIT MARGIN WERE PRESSURED LARGELY BY THE DECREASED DOMESTIC CONSUMPTION, PARTICULARLY DISCRETIONARY SPENDING, IN LIGHT OF THAILAND’S POLITICAL UNCERTAINTY.
FINANCIAL PERFORMANCE – RETAIL TRADING & CONTRACT MANUFACTURING
1H14 revenue from retail trading increased by 4% YoY, despite the softening of domestic consumption which affected industry-wide discretionary spending. The revenue increase was primarily attributable to the expansion of points of sale by 14% YoY;
1H14 revenue from contract manufacturing decreased by 6% YoY, from delayed orders from NMT’s key customers amidst contraction of domestic consumption;
EBITDA and EBITDA margin, together with net profit and net profit margin, declined in 1H14 because of the adverse impact of national politics, which took its toll on profitability of domestic discretionary consumer sector.
Key Highlights
Retail Trading Updates
965 836 900 915
1,001
810
107
64 76
90 107
50
56
23 30
43 54
8
11.1%
5.8%
1Q13
2.8%
2Q13
7.7% 8.5%
3.3%
3Q13
Revenue
EBITDA
NPAT
EBITDA Margin
NetMargin
THB million
-3% YoY
-23% YoY
9.8%
-65% YoY
4.7%
4Q13
10.6%
5.4%
1Q14
6.2%
1.0%
2Q14
1,801 1,811
172156
79
62
+1% YoY
-9% YoY
-21% YoY
9.5% 8.6%
4.4%
1H13
3.4%
1H14
33
RETAIL TRADING & CONTRACT MANUFACTURING
2Q14 TOTAL-SYSTEM-SALES OF RETAIL TRADING GREW BY 6% AS A RESULT OF OUTLET EXPANSION OF 14% YoY. ALTHOUGH SAME-STORE-SALES GROWTH CONTINUED TO BE NEGATIVE IN 2Q14 AS SALES OF DISCRETIONARY GOODS HAVE BEEN IMPACTED BY THE INDUSTRY-WIDE SLOWDOWN, THE TREND IS IMPROVING. SIMILARLY, 2Q14 SALES PER SQM. ALSO DECLINED YoY.
Retail Trading Updates
Same-Store-Sales Growth Total-System-Sales Growth
No. ofShops
Fashion & Cosmetic Sales per Sq.m.
THB
SSS & TSS GROWTH SALES PER SQ. M.
276
12.2%
-4.0%-2.3%
3.3%
-10.0%
-5.9%
23.0%
1.0%
8.0%
16.0%
3.0%
6.0%
-20%
0%
20%
40%
1Q13 2Q13 3Q13 4Q13 1Q14 2Q14
240 247 256 278
28,931
24,78725,443 25,387
25,620
23,996
10,000
20,000
30,000
40,000
1Q13 2Q13 3Q13 4Q13 1Q14 2Q14
No. ofShops
276240 247 256 278281 281
34
CAPEX & BALANCE SHEET STRENGTH IN ADDITION TO COMMITTED CAPEX, MINT ALSO SET ASIDE ADDITIONAL CAPEX FOR FUTURE ACQUISITIONS AND NEW INITIATIVES. LEVERAGE RATIO REMAINS WELL BELOW THE INTERNAL POLICY. WITH ITS SOLID BALANCE SHEET, MINT WILL BE ABLE TO PRIMARILY USE ITS INTERNAL CASHFLOW AND DEBT FINANCING TO FUND ITS CAPEX REQUIREMENTS GOING FORWARD. TRIS RATING HAS UPGRADED MINT AND ITS SENIOR DEBENTURE RATINGS TO “A+”, FROM “A” IN APRIL 2014.
BACK-UP FINANCING
X
0.4
0.6
0.8
1.0
1.2
1.4
1Q13 2Q13 3Q13 4Q13 1Q14 2Q14
Interest Bearing Debt to Equity
Net Interest Bearing Debt to Equity
Internal Policy
X
THB million
-
2.0
4.0
6.0
8.0
-
2,000
4,000
6,000
8,000
10,000
2013 2014F 2015F 2016F 2017F 2018F
THB million
Additional CAPEX (non-committed average per annum) for New Opportunity/Acquisition(s)
Restaurant Hotel & Mixed-use Retail Trading
EBITDA coverage on committed CAPEX0
10,000
20,000
30,000
40,000
50,000
60,000
Outstanding Borrowing & Equity
Un-Utilized Facility
DebtDebt
Shareholders’Equity
CAPEX PLANS – COMMITTED & NEW OPPORTUNITIES LEVERAGE RATIOS
CAPEX & Balance Sheet Strength
0.87x
1.00x
* Note that 2014F CAPEX is according to the original 5-year plan and does not take into account new acquisitions during the year
35 Going Forward
FIVE-YEAR ASPIRATIONS
22 hotels
676 restaurants
316 retail shops & POS
(14,524 Sqm)
2007
> 160 hotels
> 200 residences built to date
> 500 timeshare units
> 2,600 restaurants
> 350 retail shops & POS
(>30,000 sqm)
2018F
NPAT (THB) 1.6bn
4.1bn
2007
2018F
2013
109 hotels
67 residences built to date
106 timeshare units
1,592 restaurants
281 retail shops & POS
(22,415 Sqm)
2Q14
36
FIVE-YEAR STRATEGY CONSISTS OF THE FOLLOWING THREE KEY PILLARS, WITH CLEAR GOALS AND MEASUREMENTS.
NPAT growth of ~15-20% CAGR ROIC of >16%
Growth Pillars
Measure-ments
Drive Profitable Portfolio of Own Brands (with
Additional Contribution from Selected International Brands)
Maximize Asset Value and 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%
2018 Goals
Summary of Five-Year Plan
MINT’S FIVE-YEAR STRATEGY 2014-2018
Appendix
Riverside in China
38
FINANCIAL PERFORMANCE – MINT MINT REPORTED 1H14 REVENUE INCREASE OF 10% YoY. THE REVENUE GROWTH WAS ATTRIBUTABLE TO HOTEL & MIXED-USE AND RESTAURANT BUSINESSES, TOGETHER WITH THE GAIN ON FAIR VALUE ADJUSTMENT OF INVESTMENT IN SERENDIB OF THB 87 MILLION BEFORE TAX (THB 69 MILLION AFTER TAX). EBITDA AND NET PROFIT GREW BY SIMILAR RATE PARTLY AS A RESULT OF EFFICIENT COST CONTROL.
Overall Performance
RestaurantHotel & Mixed-UseRetail Trading
9,636
2,550
26.5%
8,252
1,364
16.5%
8,954
1,691
18.9%
Revenue
EBITDA
NPAT
EBITDA Margin
NetMargin
THB million
+11% YoY Retail Trading9%
Restaurant43%
Hotel & Mixed-use
48%
+22% YoYRetail Trading
4%
Restaurant34%
Hotel & Mixed-use
62%
+44% YoY
1,409
429
707
Retail Trading3%
Restaurant36%
Hotel & Mixed-use
61%
14.6% 5.2% 7.9%
1Q13 2Q13 3Q13 4Q13
10,094
2,699
1,556
26.7%
15.4%
10,630
2,575
24.2%
1,420
1Q14
13.4%
9,123
1,667
617
18.3%
2Q14
6.8%
+10% YoY
17,88819,753
+8% YoY
3,9144,242
+11% YoY
1,8382,037
21.9% 21.5%
1H13
10.3%
1H14
10.3%
39
% OF FOOD & PAPER COST TO SALES
FOOD AND PAPER COSTS AS A PERCENTAGE OF SALES HAS TRENDED DOWN OVER THE PAST FIVE YEARS AS A RESULT OF CONTINUED EFFECTIVE COST MANAGEMENT PROGRAM.
Restaurants Updates
EFFECTIVE MANAGEMENT OF FOOD COSTS
Fixed Long-Term Contract Prices
Pro-Active Inventory Management
Menu-Mix Re-Engineering
Supply Chain Management
Maximization of FTA Benefit Strategies
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%30.7%
32.0%
31.0%
33.1%
31.0%
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 2Q13 3Q13 4Q13 1Q14 2Q14
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
40
Brand SSS (%) TSS (%)
2Q14 2Q13 1H14 1H13 2Q14 2Q13 1H14 1H13
The Pizza Company 4.6% -10.3% -3.7% -2.6% 13.2% -7.1% 3.0% 0.7%
Swensen’s 5.0% 6.8% 2.3% 8.1% 11.2% 12.7% 8.1% 14.0%
Sizzler 4.1% 1.2% 3.3% 1.8% 14.1% 6.3% 14.1% 4.6%
Dairy Queen 0.9% 1.5% -0.5% 0.9% 17.4% 19.8% 16.0% 18.7%
Burger King -4.4% 8.7% -1.7% 9.1% 21.7% 15.4% 25.0% 14.0%
The Coffee Club 3.0% 3.2% 2.4% 3.2% 9.5% 11.9% 9.7% 11.2%
Ribs & Rumps -5.5% -7.9% -4.6% -7.3% 33.1% 21.6% 27.0% 16.8%
Riverside -12.0% N/A -7.4% N/A 16.9% N/A 28.7% N/A
Thai Express -7.9% 8.0% -5.8% 6.8% 6.3% 17.1% 9.5% 13.3%
Average 1.5% 1.1% -0.2% 2.6% 12.4% 13.9% 10.8% 13.8%
Average Thailand 3.7% -1.2% -0.3% 2.2% 15.0% 5.9% 10.4% 8.5%
Restaurants Updates
RESTAURANT PERFORMANCE
41
Brand No. of outlets No. of outlets
Total Equity Franchise Thailand International
The Pizza Company 195 120 269 46 315
Swensen’s 132 173 278 27 305
Sizzler 52 - 43 9 52
Dairy Queen 250 128 378 - 378
Burger King 37 - 35 2 37
The Coffee Club 27 333 14 346 360
Ribs & Rumbs 8 5 - 13 13
Thai Express 70 13 2 81 83
Riverside 32 - - 32 32
Others 17 - 17 - 17
Total 820 772 1,036 556 1,592
Restaurants Updates
RESTAURANT OUTLETS - 1H14
42
S&P OPERATES A CHAIN OF RESTAURANTS AND BAKERY SHOPS WITH OVER 450 OUTLETS IN 8 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 1H14 MARGINS HAVE BEEN PRESSURED FROM INCREASED PREMISE EXPENSES AND DEPRECIATION WHICH RESULTED FROM NUMEROUS OUTLETS OPENED IN 2H13.
S&P
CONTINUED & STRENGTHENING PARTNERSHIP WITH S&P
267562 487
683 7511,097
2,151 2,151
46
55
(131)
61
1,054
1,054
4.8%
19.0% 20.8%22.9%
26.3%
31.3% 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 2013
Investment Cost
Unrealized gain (loss)
Gain from investment reclassification
% shareholding
THB million
313
617744
1,805
356
2,151
Sila-on & Riva
Families
43%MINT31%
Others26%
SHAREHOLDING STRUCTURE
MINT’S INVESTMENT IN S&P
EBITDA Margin
NetMargin
THB million
20112009 2010
4,7615,340
5,9416,653 7,094
674817
963
1,1971,092
15.4%14.2% 15.3%
293383 454
708626
8.8%6.2% 7.2%
16.2%
7.6%
2012
+7% YoY
-9% YoY
-12% YoY
18.0%
10.6%
2013
Revenue
EBITDA
NPAT
+4% YoY
3,3283,198
-11% YoY
397444
13.9% 11.9%
-25% YoY
7.7% 5.5%
1H13 1H14
245
183
As of 15 Jan 2014
43
MINT CURRENTLY HOLDS 11% STAKE IN BREADTALK. TOTAL INVESTMENT AMOUNT IS SGD 22.1 MILLION, WITH AVERAGE COST PER SHARE OF SGD 0.7155. APART FROM UNREALIZED CAPITAL GAIN, MINT IS NOW ENTITLED TO DIVIDEND FROM BREADTALK GOING FORWARD.
Breadtalk
INVESTMENT IN BREADTALK
737 bakery outlets
58 food atria
41restaurants
15Countries
China (57 cities), Singapore, Indonesia, Philippines, Thailand, Hong Kong, Malaysia, India, Vietnam, Kuwait, Bahrain, Sri Lanka, Jordan, Oman and Taiwan
Singapore50%
China32%
Hong Kong10%
Rest of World
8%
Food Atrium
26%
Restaurant23%
Bakery51%
Revenues(SGD Million)
Profit before tax(SGD Million)
247303
366447
537
16 17 1719
22
20112009 2010 2012 2013
2009-2013 CAGR 21%
2009-2013 CAGR 10%
Staff of over
7,000
A premier lifestyle brand in the region, headquartered in Singapore. Breadtalk was founded in 2000 and was listed on SGX in 2003.
BASIC PROFILE REVENUE CONTRIBUTION
FINANCIAL PERFORMANCE
* As at 2013
+14% YoY
247280
-6% YoY
1H13 1H14
5.3 5.0
44 Hotel Updates
HOTEL PERFORMANCE BY OWNERSHIP – 2Q14
Systemwide
Organic
Hotel ARR (Bt/night)
2Q14 2Q13 Chg 2Q14 2Q13 %Chg 2Q14 2Q13 Chg
Owned 51% 61% -10% 6,348 5,650 12% 3,258 3,446 -5%
Joint Venture 52% 52% 0% 15,764 11,895 33% 8,120 6,178 31%
Managed 50% 51% -1% 5,420 4,405 23% 2,701 2,254 20%
MLR 72% 75% -4% 4,727 4,635 2% 3,388 3,498 -3%
Average
(incl . Oaks) 62% 66% -4% 5,396 4,999 8% 3,344 3,280 2%
Average
(excl . Oaks) 51% 56% -6% 6,498 5,464 19% 3,293 3,071 7%#DIV/0!
Avg - Thai land 50% 62% -12% 4,916 4,479 10% 2,453 2,784 -12%
Avg - Overseas
(incl . Oaks) 67% 67% 0% 5,537 5,220 6% 3,696 3,508 5%
Avg - Overseas
(excl . Oaks) 52% 47% 5% 8,905 7,568 18% 4,623 3,531 31%
Occupancy (%) RevPar (Bt/night)
Hotel ARR (Bt/night)
2Q14 2Q13 Chg 2Q14 2Q13 %Chg 2Q14 2Q13 Chg
Owned 51% 61% -10% 6,301 5,650 12% 3,199 3,446 -7%
Joint Venture 51% 52% -1% 17,428 11,895 47% 8,964 6,178 45%
Managed 50% 51% -1% 7,234 4,405 64% 3,613 2,254 60%
MLR 72% 75% -4% 4,727 4,635 2% 3,388 3,498 -3%
Average
(incl . Oaks) 60% 66% -5% 6,004 4,998 20% 3,618 3,280 10%
Average
(excl . Oaks) 50% 56% -6% 7,578 5,464 39% 3,818 3,071 24%
Avg - Thai land 48% 62% -15% 4,594 4,479 3% 2,183 2,784 -22%
Avg - Overseas
(incl . Oaks) 66% 67% -1% 6,462 5,220 24% 4,265 3,508 22%
Avg - Overseas
(excl . Oaks) 54% 47% 8% 11,182 7,568 48% 6,073 3,531 72%
Occupancy (%) RevPar (Bt/night)
45 Hotel Updates
HOTEL PERFORMANCE BY OWNERSHIP – 1H14
Systemwide
Organic
Hotel ARR (Bt/night)
1H14 1H13 Chg 1H14 1H13 %Chg 1H14 1H13 Chg
Owned 58% 70% -11% 7,625 6,562 16% 4,436 4,566 -3%
Joint Venture 55% 54% 1% 19,693 15,232 29% 10,832 8,221 32%
Managed 53% 55% -3% 5,956 4,843 23% 3,127 2,685 16%
MLR 74% 77% -3% 4,847 4,769 2% 3,578 3,662 -2%
Average
(incl . Oaks) 65% 70% -4% 5,974 5,494 9% 3,899 3,819 2%
Average
(excl . Oaks) 56% 63% -7% 7,682 6,345 21% 4,266 3,969 7%
Avg - Thai land 56% 70% -15% 5,745 5,137 12% 3,199 3,608 -11%
Avg - Overseas
(incl . Oaks) 69% 69% 0% 6,049 5,663 7% 4,184 3,917 7%
Avg - Overseas
(excl . Oaks) 55% 50% 5% 10,941 9,154 18% 5,995 4,563 31%
Occupancy (%) RevPar (Bt/night)
Hotel ARR (Bt/night)
1H14 1H13 Chg 1H14 1H13 %Chg 1H14 1H13 Chg
Owned 57% 70% -12% 7,557 6,562 15% 4,332 4,566 -5%
Joint Venture 53% 54% -1% 21,387 15,232 40% 11,356 8,221 38%
Managed 53% 55% -2% 7,493 4,843 55% 3,988 2,685 49%
MLR 74% 77% -3% 4,847 4,769 2% 3,578 3,662 -2%
Average
(incl . Oaks) 64% 70% -6% 6,527 5,494 19% 4,152 3,819 9%
Average
(excl . Oaks) 55% 63% -8% 8,462 6,345 33% 4,643 3,968 17%
Avg - Thai land 54% 70% -16% 5,252 5,136 2% 2,843 3,608 -21%
Avg - Overseas
(incl . Oaks) 68% 69% -1% 6,989 5,663 23% 4,746 3,917 21%
Avg - Overseas
(excl . Oaks) 56% 50% 6% 12,751 9,154 39% 7,126 4,563 56%
Occupancy (%) RevPar (Bt/night)
46
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, OAKS AND AVANI, MORE EXPONENTIALLY THROUGH ASSET LIGHT MODEL (MANAGEMENT CONTRACTS), WITH GEOGRAPHICAL FOCUS OUTSIDE OF THAILAND.
MINT’S HOTEL PORTFOLIO
-
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
18,000
20,000
2005 1H14 2018F
Others Oaks
Avani Anantara
Four Seasons Marriott
-
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
18,000
20,000
2005 1H14 2018F
International
Outside Bangkok
Bangkok
-
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
18,000
20,000
2005 1H14 2018F
Managed
Joint Venture
Own Equity
No of rooms
2,169
19,404
55% 4% 3%20%
28%
3%19%
47%
32%
6%
6%
37%
19%
92% 21%19%
8%8%
13%
71%
68%
2,169
36%16% 12%
56%
13% 9%8%
71%
79%
2,169
4%
13,179
6%
11%
No of rooms No of rooms
19,404
13,179
19,404
13,179
Hotel Updates
BY BRAND BY LOCATIONBY OWNERSHIP
47
HOTEL INDUSTRY OUTLOOK IS EXPECTED TO REMAIN STRONG ON THE BACK OF INCREASING TOURIST ARRIVAL.
Hotel Updates
TOURIST ARRIVAL TO THAILAND
TOURIST ARRIVALS TO THAILAND – MONTHLY TREND
TOURIST ARRIVALS TO THAILAND – YEARLY TREND
-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 2013 2014F 2015F
Tourist Arrival % Change
Million
Source: Tourism Authority of Thailand and Bank of Thailand
Million
-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 Apr-13 Jul-13 Oct-13 Jan-14 Apr-14
48
HISTORICAL CHALLENGES IMPOSE ONLY SHORT-LIVED IMPACT ON THAI TOURISM. NUMBER OF TOURIST ARRIVALS REBOUNDED WITHIN A FEW MONTHS AFTER EACH CHALLENGE SUBSIDED.
QUICK RECOVERY OF THAI TOURISM ENSURES LONG-TERM POSITIVE OUTLOOK FOR MINT’S HOTELS
Hotels Updates
Increasing Influx of New
Emerging Feeder Markets
Rebounding Conventional Markets on the Back of Firmer Global Economic
Recovery
Additional New Customers Who Welcome Our Brands as
We Open More Hotels Overseas
Million
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
Jan-03 Apr-03 Jul-03 Oct-03 Jan-06 Apr-06 Jul-06 Oct-06-40%
-20%
0%
20%
40%
60%
80%
Jul-08 Oct-08 Jan-09 Apr-09 Jul-09 Oct-09 Jan-10 Apr-10 Jul-10
SARS Outbreak in 2003
Bangkok Coup in 2006
Political Turmoil during 2008 - 2010
Air
po
rt C
losu
re
Po
litic
al U
nre
st
% Chg y-y
Ban
gko
k C
ou
p
Raj
pra
son
g R
iot
TOURIST ARRIVALS TO THAILAND – MONTHLY TREND
GOING FORWARD, MINT EXPECTS TO SEE STRONG GROWTH IN ROOMS SOLD ACROSS ALL MARKETS THAT IT OPERATES, BEING DRIVEN BY:
49
MINT CONTINUES TO SEE IMPROVEMENTS ACROSS OF ITS FEEDER MARKETS, WITH AN 18% YoY INCREASE IN 1H14 OVERALL ROOMNIGHTS COMPARED TO DECREASE IN THAILAND’S TOURIST ARRIVALS OF 10% YoY.
Hotel Updates
MINT’S FEEDER MARKETS
THAILAND’S TOP 5 – 1H14 FEEDER MARKETS
MINT’S 1H14 FEEDER MARKETS
0
400
800
1,200
1,600
2,000
2,400
China Russia Japan Laos Korea
1H13 1H14
0
50,000
100,000
150,000
200,000
Thailand East Asia Europe The Americas South Asia Oceania Middle East Africa & Others
1H13 1H14
No of room nights
No of tourists
* Note: MINT’s feeder market excludes Oaks’
-2%
-3%28%
-6%
52%20%
21%
105%
China +31%Japan -26%
Singapore -9%
UK +58%Germany +16%
Russia +35%
India +48%
-20%
9%
-21%16% -13%
UAE +59%
MINT’S 1H14 FEEDER MARKETS
Thailand, 8%
East Asia, 27%
Europe, 33%
The Americas, 8%
South Asia, 4%
Oceania, 5%
Middle East, 14%
Africa & Others, 1%
50
STRENGTHENING OF HOTEL’S NON-TRADITIONAL MARKETS
ALTHOUGH CHINA AND RUSSIA TOGETHER REPRESENTED ONLY 14% OF MINT’S TOTAL FEEDER MARKETS BASED ON ROOM NIGHTS IN 2013, THE YIELDS THEY GENERATED WERE RELATIVELY MUCH HIGHER AS THEY MOSTLY STAYED AT HIGHER-ROOM-RATE HOTELS, E.G. IN MALDIVES AND PHUKET.
Hotels Updates
China10%
Russia4%
Others86%
Maldives Hotels
21%
Anantara & JW
Marriott in Phuket
3%Four Seasons
Group16%
St. Regis3%
Others57%
Maldives Hotels
34%
Anantara & JW
Marriott in Phuket
28%
Four Seasons
Group3%
St. Regis1%
Others34%
Average ADR*: Bt 12,807 Average ADR*: Bt 20,983
Average ADR: Bt 6,098
* The pie charts include total room nights of MINT hotel portfolio (excluding Oaks), while average daily rates of China and R ussia markets are calculated from Maldives hotels, Anantara Phuket, JW Marriott Phuket, Four Seasons group and St. Regis (excluding others)
MINT’S 2013 FEEDER MARKETS