Dusit Thani Plc. Analyst Meeting “1H 2018 Performance” 27 August 2018
Disclaimer The material contained in this document has been prepared by Dusit Thani Public Company Limited (“DTC”) and may contain forward looking statements which includes but not limited to statements regarding our intent, belief, current expectation in respect of DTC’s business, operation, market researches, results of operation and financial conditions, capital adequacy, specific provisions and risk management practices. While due care has been used in the preparation of forward looking statements, the assumptions of the information are subject to various risk and uncertainties which the actual results may vary in a materially positive or negative manner differently from the anticipation. And no assurance that the past performance is a reliable indication of future performance. Therefore, the information regarding forward looking statements shall not be considered as recommendation or advice to investors or potential investors in relation to hold, purchase, or sell securities. In this respect, DTC reserves the right not to be responsible and expressly disclaims all liabilities for, damages of any kind arising out of use, reference to, or reliance on any information contained herein. 2
Agenda Page • Business overview 4 • 1H 2018 Performance 15 • Outlook & Guidance 22 3
Busin iness overview 4
DTC at a gla lance Distinguished hospitality group with Thai heritage… 70 Years in hospitality business 64 Management contracts in pipeline 26* Properties in operation Years in hospitality education 9 Owned hotels 25 business 17 Management contracts & franchise 9 Countries …with an aim to complete coverage of travelling lodging spectrum FULL SERVICE LIMITED SERVICE EXPERIENCE Bespoke/ Branded Lifestyle/ Shared Cruise/ Midscale Economy Budget Luxury Residence Boutique Economy Vacation Club = Future plan As of 30 June 2018 * Dusit Thani Laguna Phuket, dusitD2 Chiang Mai and the leasehold of Dusit Thani Hua Hin are under Dusit Thani Freehold and Leasehold Real Estate Investment Trust (DREIT) of which 5 DTC holds a 30.02% stake.
Revenue and EBIT ITDA contribution 2017 Revenue contribution Managed Dusit Thani Owned Hotels Hotels Bangkok 4% 20% Dusit Princess Overseas Others Korat 33% 9.7% Hotel THB 2% 82.4% 5,570 mn Thailand 67% Education Other Owned 7.9% Hotels 74% 2017 EBITDA contribution Managed Dusit Thani Owned Hotels Hotels Bangkok 1% 17% Overseas THB Hotel Others 36% 1,099 mn 77.8% 17.7% Thailand 64% Other Owned Education Hotels 4.5% 82% Remark: REIT data is included in hotel business; 6 Others = Realized income from deferred rental revenue, gain on sales of assets, interest income, dividend income, share of profit from investment by equity method, office rental income, and others
Strategic dir irection With strong background in the hotel management and education business, DTC is now entering into the new chapter with multi-year plan under “Balance, Diversify, and Expand” strategy … • 50:50 domestic: overseas revenue with balancing of BALANCE asset light vs capital investment Long term • DIVERSIFY 10% contribution from new adjacent business target • Double number of rooms in operation EXPAND from 7,000 to 14,000 keys in 2021 … by strengthening key 5 pillar foundations People Technology Financial Process Properties Capability 7
Strategic roadmap • Set new strategic direction • New iconic flagship hotel • Completion of new mixed-use • Develop new • Integration of hospitality project • More revenue contribution from Vision/Mission/Values and education business • Focus on key priorities • Double no. of keys new investments • Balance of revenue contribution worldwide from Thailand and overseas 8
Strengthening the foundation progress • New vision/ mission/ core value has been implemented • New board members. Additional functions & new people to serve the transformation. • On-going human capital development People • Strengthening customer engagement via the owner newsletters as well as regular visits • Implemented shared service: Completed staff mapping assessment. Will relocate to the new office in 4Q18. • Group restructuring is in process. Expect to be completed in the next 2-3 years. Process • Scale for growth: Building standard integrated platform for both existing and new hotels • Launched Dusit Mobile App and plan for future technology to enhance guest’s experience Technology • Utilize technology to collect and maximize benefit from guest and non-guest data analysis • Redevelopment of the flagship Dusit Thani Bangkok (Operate until Jan 5 th 2019) • Divestment of Dusit Princess Korat at the end of 2017 • On-going renovation of existing properties: Properties 2017: Pattaya, Phuket*, and Manila 2018: Phuket*, Maldives, and Srinakarin • Completed the transformation of DTCPF to DRIET • Well-planning of the mixed-use business restructure to stabilize the company’s EBITDA and return to Financial shareholders during the closure of Dusit Thani Bangkok. • Leveraged more with plan to issue THB debenture in late 3Q18. Capability 9 * Dusit Thani Laguna Phuket is under Dusit Thani Freehold and Leasehold Real Estate Investment Trust (DREIT).
Moving towards strategic dir irection ● Hotel portfolio (Invest/Lease/Managed) ● 64 management contracts in pipeline ● Capital investment focusing UK, Japan, Australia markets ● Launched ASAI brand Hotel ● Conversion of DTCPF to DREIT ● Rebranding and Expansion ● Set up Dusit Thani Excellence Center ● Le Cordon Bleu relocation to Central World Education ● Hotel, retail shopping center, residence, and office Building ● Strengthen the asset quality and diversify to non-hotel business ● Uplift the group’s future revenue and earnings Mixed-use Project ● Business synergy by collaboration with CPN ● Acquisition of 25.977% NR Instant Produce Co., Ltd. (NRIP) shares ● Investment in favstay ● Real estate Non-Hotel ● Wellness 10
2018 hotel opening target To add 9 properties and 1,400+ rooms via asset-light model. 2018F 11 Countries China Bhutan 3 Qatar 1 Thailand Thailand 1 Vietnam 1 12 39% Overseas 1 Overseas Philippines 2 61% Thailand 22 34 properties 8,083 rooms As of 30 June 2018 11
More expansion in in Asia ia pacific … 2Q18 Q18: Phu hu Qu Quoc, Vie Vietnam 3Q18: Thimphu, Bhutan 4Q18: Davao, Philippines Dusit Princess Moonrise Beach Resort dusitD2 Yarkay Thimphu DusitD2 Davao 108 rooms 83 rooms 120 rooms 4Q18: Da 4Q1 Davao, Phil hilippines 4Q18: Krabi, Thailand Dusit Thani Residence Davao DusitD2 Ao Nang Resort 168 rooms 173 rooms As of 30 June 2018 12
… and Mid iddle East as well as in in Chin ina 3Q18: Guangdong, China Dusit Thani Sandalwood Resort Shangyue Bay Huizhou 350 rooms 4Q18: Jiangsu, China Dusit Thani Wetland Park Resort Nanjing 4Q18: Doha, Qatar 45 rooms Dusit Doha Hotel 261rooms 96 apartments 3Q18: Jiangsu, China Heritage Villas Zhouzhuang Managed by Dusit 33 rooms As of 30 June 2018 13
Mix ixed-use proje ject • The redevelopment of Dusit Thani Bangkok Hotel • A joint venture project between Dusit Thani Plc. (DTC) and Central Pattana Plc. (CPN) to develop the THB 36.7 bn mixed-use project Opening target • Hotel Early 2023 • Residence Mid 2024 • Retail Late 2023 • Office Early 2024 Located at the intersection of Silom and Rama IV road 2018: Year of developing design concept and attaining construction permit • 100% completion on the demolition of the office and commercial building on the Progress extended land adjacent to Dusit Thani Building and the parking area of the hotel. • Nearly complete the design concept and currently under the development of systematic design. As of 30 June 2018 14
1H 2018 Performance 15
1H18 Recap New mobile app launched Jan New app has been specially designed to enhance the guest experience and drive repeat business to all Dusit properties worldwide Feb Co-created the “Graciousness in the sky” - the new Customized short Royal First Class experience by Thai Airways course education International. program for airlines A six-week programme conducted by Dusit Thani College at the Thai Airways Cabin Crew Training Center. Jan Mar Apr Change in investment Reduced investment in Divested all 50% of a JV Divested all shares of Saladang Property “ Dusit Bird Hotels Private Laguna Resorts & Hotels Management Co., Ltd. Limited” to end JV Plc. (“LRH”) to the tender to 14% (from 25%) relationship with Bird offerors Group in India due to different strategy 16
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