Oaks Aurora Brisbane, Australia Company Presentation August 2011
Oaks Broome AGENDA 2Q11 & 1H11 Results Review Business Updates & Outlook Oaks Hotels & Resorts Appendix 2
The Pizza Company opened its first outlet in Vietnam in 2Q11 2Q11 & 1H11 Results Review 3
1H11 REVENUE INCREASE OF 38% 2Q11 & 1H11 Results MINT REPORTED 1H11 REVENUE INCREASE OF 38% YoY, ATTRIBUTABLE TO GROWTH IN ALL EXISTING BUSINESSES, AS WELL AS ADDITIONAL REVENUE SOURCES FROM NEW INITIATIVES OF THE HOTEL AND MIXED USE BUSINESS +38% YoY THB million THB million 12,957 +55% YoY 9,381 6,686 6,271 5,326 5,296 4,412 4,055 1H11 revenue increased by 38% YoY, as a result of: Recovery of hotel business, partly supported by the improvement in the tourism industry; Recognition of sales of real estates including St. Regis residential units and Anantara Vacation Club; Consolidation of Oaks Hotels & Resorts, Australia; Strong growth of restaurant business; Strong growth of retail trading business and resumption of contract manufacturing orders 4
1H11 EBITDA INCREASE OF 37% 2Q11 & 1H11 Results 1H11 EBITDA INCREASED BY 37% YoY PRIMARILY PROPELLED BY THE NEW INITIATIVES OF HOTEL AND MIXED-USE BUSINESS, WHILE EBITDA MARGIN REMAINED STABLE OWING MAINLY TO EXPENSES OF TWO NEW HOTELS AND ANANTARA VACATION CLUB +37% YoY THB million +74% YoY THB million 2,578 1,506 1,887 1,270 1,072 1,056 690 617 EBITDA 20.1% 19.9% Margin 1H11 EBITDA increased by 37% YoY, as a result of: New sources of EBITDA from new initiatives of hotels’ mixed use business (i.e. St. Regis Residences) and Oaks helped increase the hotel EBITDA despite increased expenses from two new hotels, Anantara Kihavah and St. Regis Hotel; EBITDA 17.1% 23.8% 15.2% 15.6% 19.9% 22.5% Margin Stable growth of the restaurant business EBITDA of retail trading business almost doubled as a result of higher operating efficiency of retail trading business 5
1H11 NET PROFIT INCREASE OF 63% 2Q11 & 1H11 Results 1H11 NET PROFIT ROSE 63% YoY, WHILE NET PROFIT MARGIN ALSO EXPANDED TO 8.5%, AS PERFORMANCE OF ALL THREE BUSINESS UNITS IMPROVED, TOGETHER WITH CONTRIBUTION FROM NEW INITIATIVES UNDER THE MIXED USE BUSINESS +63% YoY THB Million THB Million 1,102 +254% YoY 823 678 599 432 279 Net Margin 7.2% 8.5% 126 79 1H11 net profit increased by 63% YoY, as a result of: Improvement in hotel and mixed use net profit primarily as a result of the sale of St. Regis Residences, despite higher expenses of the two newly opened hotels Net 11.2% 1.9% 2.9% 8.2% 12.3% 4.5% Steady improvement in restaurant net profit of 19% Margin Net profit of retail trading and contract manufacturing business more than doubled in 1H11 6
Anantara Mui Ne, Vietnam Business Updates & Outlook 7
FINANCIAL PERFORMANCE – HOTEL & MIXED USE Hotel Updates 1H11 REVENUE AND PROFIT FROM THE HOTEL & MIXED-USE BUSINESS EXHIBITED IMPRESSIVE GROWTH OF 92% AND 94% YoY WITH STABLE NET MARGIN. STRIPPING OUT THE TWO NEW HOTELS AND ANANTARA VACATION CLUB, WHICH ARE STILL AT THEIR INITIAL STAGES, NET MARGIN WOULD HAVE IMPROVED Key Highlights THB Million Successfully acquired 100% of Oaks, with the consolidation of Revenue Oaks’ performance since June 2011; Recognition of real estate business, both St. Regis Residences and Anantara Vacation Club; Opened two hotels in 2Q11: EBITDA equity-owned St. Regis Hotel Bangkok and Anantara Mui Ne under management contract; EBITDA 40.8% 20.2% 24.4% 29.8% 33.8% 22.1% 33.6% 28.2% Margin Hotel business continued to see recovery as evidenced by improvement in organic occupancy; NPAT Three Maldives hotels (Anantara Veli, Anantara Dhigu and Naladhu) continued to Net 20.9% -4.8% -2.0% 11.7% 20.0% 3.1% 11.8% 11.9% report significant improvement Margin in 2Q11 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 1H10 1H11 8
OAKS’ ACQUISITION & CONSOLIDATION Oaks MINT SUCCESSFULLY ACQUIRED 100% OF OAKS BY THE END OF JULY, AFTER 5 MONTHS PROCESS OF SHARES SOLICITATION AND TENDER OFFER. CONTRIBUTION FROM OAKS IS BECOMING SIGNIFICANT, EVEN WITH ONLY ONE MONTH OF OAKS’ OPERATIONS IN 2Q11 1Q11 Financials 2Q11 Financials AUD million 4.6 84.5 12.1 55.7 Debt 3.0 9.1 Internal Cash Price per share AUD 0.35 AUD 0.52 One-Month Contribution from Oaks MINT starts to consolidate Oaks in June 2011; THB million Oaks’ one -month revenues from operation account for 550 One-time transaction 5.5 % of MINT’s 2Q11 total revenues; From operations MINT recorded one-time fair value adjustment of Bt 203 in 1Q11 from adjusting the first 20% investment from AUD 0.35 per share to AUD 0.52 per share; after 114 netting off the transaction expenses, the one-time net profit from the transaction is Bt 89 million 9
CAPEX & BALANCE SHEET AFTER OAKS’ ACQUISITION Oaks 2011F CAPEX IS EXPECTED TO BE OVER THB 6 MILLION BECAUSE OF OAKS’ ACQUISITION AND THE COMPLETION OF ST. REGIS AND ANANTARA KIHAVAH. DEBT TO EQUITY RATIO HAS INCREASED TO 1.3X AS AT END OF 2Q11 BUT IS EXPECTED TO COME DOWN IN 12-18 MONTHS Leverage Ratio Revised CAPEX including Oaks THB million X X on committed CAPEX Additional CAPEX (non-committed average per annum) for New Opportunity/Acquisition(s) 10
RESIDENTIAL PROPERTY DEVELOPMENT Residential SALES OF ST. REGIS RESIDENTIAL UNITS WAS ONE OF THE MAJOR REVENUE CONTRIBUTORS FOR THE HOTEL & MIXED USE BUSINESS IN 1H11. BOTH ST. REGIS RESIDENCES AND THE ESTATES SAMUI WILL HAVE INVENTORIES AVAILABLE FOR SALE OVER THE NEXT FEW YEARS. REVENUES FROM ANANTARA VACATION CLUB WILL BE SIGNIFICANT CONTRIBUTOR GOING FORWARD WHEN INVENTORY OF THE RESIDENTIAL UNITS ARE SOLD OUT Sold 50% Sold 38% Inventory 50% Inventory 62% Anantara Vacation Club 7% 8% 8% 19% 3% Sold Potential; Inventory Inventory Inventory To date, 30% of the total sellable pending deposit area has been recognized transfer collected 11 2011F
Anantara ANANTARA VACATION CLUB Vacation Club LAUNCHED IN DEC 2010, ANANTARA VACATION CLUB STARTED TO CONTRIBUTE TO REVENUES OF THE HOTEL & MIXED USE BUSINESS SINCE 1Q11 . THE SALES HAS EXCEEDED MINT’S INTERNAL TARGET. MINT EXPECTS SELLING MOMENTUM TO ACCELERATE OVER THE NEXT 2 YEARS Anantara Vacation Club is in the process of accumulating its own purpose-built properties: Samui (Inventory of 16 million points) The 20 units of exclusive suites and villas have been completed in Dec 2010 and are now available Phuket (Inventory of 76 million points) Two villas at Anantara Phuket Resort & Spa have been rented as immediate inventory AVC Members 30 rai of land has been purchased to build 100 units of Anantara Vacation Club Singapore properties, to be available by the end of Others 27% 32% 2012 Other destinations, which are being actively pursued, include Bangkok and Bali China UK 8% As at 30 June 2011, over USD 6 million of 4% Malaysia UAE AVC have been sold, with Asians currently 8% 4% Germany Hong Kong Australia the biggest market 4% 7% 6% * As at July 2011 12
MINT’S HOTEL STATISTICS Hotel Outlook MINT’S HOTEL STATISTICS SAW GRADUAL IMPROVEMENT SINCE ITS ALL -TIME-LOW IN 2Q10. EXCLUDING NEW HOTELS OPENED, ORGANIC OCCUPANCY OF EXISTING HOTELS SAW AN IMPROVEMENT TO 52% YoY +227 rooms St. Regis Hotel +89 rooms Anantara Mui Ne THB +436 rooms Anantara Sathorn +44 rooms Anantara Rasananda +78 rooms Anantara Kihavah No of Rooms No of hotel rooms Organic Occupancy ADR Revpar % Occupancy Overall Occupancy * Note: No of rooms exclude Elewana, Serendib and Kani Lanka rooms 13
MINT’S FEEDER MARKETS Performance of Existing Hotels MINT CONTINUES TO SEE IMPROVEMENTS ACROSS ALL OF ITS FEEDER MARKETS, WITH A 26% YoY INCREASE IN 1H11 OVERALL ROOMNIGHTS COMPARED TO INCREASE IN THAILAND’S TOURIST ARRIVALS OF 28% YoY MINT’s 1H11 Feeder Markets UK +12% Number of China +123% Russia+20% Room Nights Hong Kong +61% Japan +35% 6% Korea +35% 59% UAE +53% Australia +28% 28% 22% India +41% 60% 30% 31% 27% * Note: MINT’s feeder market excludes Oaks’ MINT’s 1H11 Feeder Markets Thailand’s Top 5 Feeder Markets Number of Tourists 68% 21% 35% 34% 51% 14 * Despite earthquake and Tsunami in March 2011
EUROPE & US TOURISTS Hotel Outlook THAILAND HAS BEEN RESILIENT TO SEVERAL GLOBAL CRISIS OVER THE YEARS, AS EVIDENCED BY THE INCREASED EUROPEAN ARRIVALS. THAILAND HOTEL RATES REMAIN COMPETITIVE COMPARED TO THE REGION Number of Tourists Financial Crisis Dot com 911 SARS Tsunami London Bangkok Airport Pattaya bubble bomb Coup Closure Riot Ratchprasong Bird Flu Riot USD / Night Number of tourists from Europe still held up during the crisis Thailand hotel rates remain competitive in the region 15 * Note: Rate of one night at Four Seasons on Sept 1, 2011 for a standard room
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