Minor International 2Q10 Investor/ Analyst Presentation The Stock Exchange of Thailand 19 August 2010 MINT’s long-term risk mitigation strategy New New Financial Financial High Return High Return Diversification Diversification Initiatives Initiatives Discipline Discipline Assets Assets
Forward Looking Statement 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 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. 2
Today’s Agenda � Recent Developments, 1H10 & 2Q10 Financial Performance � MINT’s Strategies to Remain a Growth Company � 2010 - 2011 Outlook � Pipeline Expansion & Capex � � Q&A Q&A Appendix � MINT’s hotel & restaurant portfolio 3
Recent Developments, 1H10 & 2Q10 Financial Performance �
Recent Developments in 2Q10 Restaurant: � Food outlets reached 1,123; 686 are owned, while 437 are franchised � First SW franchised outlets opened in Bangalore in India Hotel & Residence � Elewana Afrika, MINT’s 50% owned safari resort operator, acquired Kilindi Resort in Zanzibar. Kilindi is a 15 pavilion beach resort with average ADR of US$1,000 , and re-opened for operation on 25 May after completing a program of enhancements � MINT recently announced the 80% acquisition of the Sri Lanka company Cyprea Lanka Ltd. in August 2010, comprising of the Kani Lanka Resort & Spa on 8.25 acres and an adjacent plot of 10.25-acre land primed for Anantara development in the future Retail Trading: Retail Trading: � Points of sales totaled 272 including 199 fashion outlets, 56 cosmetic outlets and 17 of others � After the CTW burning incident, GAP opened a temporary 150 Sqm shop at Emporium until Sep 19 to alleviate the impact of the CTW store closure and opened a second mega store at Siam Paragon on June 24. Plans are on track to open a Gap store at Paradise Park on August 20, 2010 and reopening the Gap store at CTW in September 2010 Finance: � Successfully launched a 5-year Bt 2.5 bn debenture with coupon rate of 3.98% in May 5
Solid Revenue Growth in 1H10 Breakdown Revenue Growth Revenue Contribution (Bt m) 10,000 1,153 68 -14 143 8,000 8,032 9,382 6,000 4,000 Increased 17% y-y 2,000 2,000 0 1H09 Food Retail Trading 1H10 Hotel& Spa Plaza& Entertain 6
2Q10 Financial Performance Snap Shot � Revenue was up 9% mainly from consolidation of Minor Corporation following the Jun-09 business restructuring � � Net Profit was down 65% due to loss from Hotel & Spa business, MINT’s highest-margin business, Net Profit was down 65% due to loss from Hotel & Spa business, MINT’s highest-margin business, which suffered from the political instability that caused tourist confidence to fall Profitability Margin (Bt Million) 2Q10 2Q09 %Change EBITDA Net Profit 25% Total Revenue 4,055 3,718 9% 20% 21% EBITDA EBITDA 617 617 788 788 -22% -22% 15% 15% 15% 10% Net Profit 80 230 -65% 5% 6% EPS (Bt) 0.0244 0.0718 -66% 2% 0% 2Q10 2Q09 7
Retail Trading Compensating for the Shortfall from Hotel Business in 2Q10 Breakdown Revenue Growth Revenue Contribution (Bt m) 5,000 27 -136 458 4,000 -12 3,000 2,000 Increased 4,055 3,718 9% y-y 1,000 0 2Q09 Food Hotel& Spa Plaza& Entertain Retail Trading 2Q10 8
Remain Profitable from Restaurant and Mixed-Use Businesses EBITDA (Bt m) 2Q10 2Q09 % chg EBITDA Contribution Restaurant Restaurant 387 387 393 393 -2% -2% Hotel & Spa 123 266 -54% Plaza & Entertainment 84 103 -18% Retail Trading 23 26 -12% EBITDA 617 788 -22% NPAT (Bt m) 2Q10 2Q09 % chg Restaurant Restaurant 119 119 121 121 -2% -2% Hotel & Spa -93 25 -472% Plaza & Entertainment 53 67 -21% Retail Trading 1 17 -94% Net Profit 80 230 -65% 9
2Q10 Consolidated Financial Performance %y-y (Bt Million) 2Q09 % 2Q10 % Change Restaurant 2,424 65% 2,439 60% 1% Hotel & Spa 1,025 28% 891 22% -13% Mixed-Use 6 0% 5 0% -7% Plaza & Entertainment 143 4% 131 3% -9% Retail Trading 116 3% 574 14% 396% Share of Profit - Restaurant 20 1% 32 1% 58% Share of Profit - Hotel & Spa (16) 0% (16) 0% 2% Total Revenue 3,718 100% 4,055 100% 9% Operating Expenses 1,213 33% 1,479 36% 22% SG&A Expenses 1,717 46% 1,960 48% 14% EBITDA 788 21% 617 15% -22% DA 387 10% 388 10% 0% EBIT 400 11% 229 6% -43% Net Profit 230 6% 80 2% -65% EPS (BT) 0.0718 0.0244 -66% Weighted Number of Shares(m) 3,207 3,277 2% 10
Restaurant Business 11
Restaurant Business Sentiment Update SSS turned positive by the growth in 20% domestic consumption and continued Consumer confidence and dining Consumer confidence and dining improvement from overseas business behaviors hit by economic recession 15% & domestic political chaos 10% 5% 5% % 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 TSS 12
Restaurant Business in 2Q10 SSS (%) TSS (%) Brand 2Q10 2Q09 2Q10 2Q09 The Pizza Company 2.6 -6.3 3.8 6.0 Swensen’s 3.4 -3.4 3.1 7.3 Sizzler 3.3 -0.8 14.1 11.4 Dairy Queen 5.6 0.4 10.3 4.3 Burger King 0.6 -14.3 2.0 10.6 The Coffee Club The Coffee Club 1.4 1.4 1.9 1.9 14.0 14.0 17.8 17.8 Thai Express -6.8 -15.7 -4.0 51.4 Average 1.3 -3.3 7.0 13.1 Average Thailand 2.8 -4.0 5.0 6.9 13
Restaurant - 2Q10 Performance Snap Shot Same-Store-Sales Growth Showed a continuous continuous improvement Effect from Political unrest Closure of some outlets Total-System-Sales Growth 14
Strong July Sales Growth Driven by Domestic Consumption and Turnaround the Overseas Performance � Thai Express reported the first positive same-store-sales growth due to the effort to revive non- performing stores and launch marketing campaign TSS-2009 TSS-2010 SSS-2009 SSS-2009 SSS-2010 SSS-2010 �� �� 7M10 = 7.3% 7M10 = 4.0% 7M09 = 7.8% �� 7M09 = -2.3% � �� � �� �� � � ��� ��� ��� ��� ��� ��� ��� ��� ��� ��� ��� ��� ��� ��� ��� ��� ��� ��� ��� ��� ��� ��� ��� ��� ��� �� �� �� �� 7M10 = 1.9% 7M10 = 1.9% 7M10 = 8.6% 7M10 = 8.6% 7M09 = -2.1% 7M09 = 14.0% �� � �� � �� �� � ��� � ��� ��� ��� ��� ��� ��� ��� ��� ��� ��� ��� ��� ��� ��� ��� ��� ��� ��� ��� ��� ��� ��� ��� ��� 15
Hotel & Residence Businesses 16
Hotel Business Sentiment Update Tourist arrivals hit record high Profitability grew 50% y-y in 1Q10 Impact from Pattaya riot Remain profitable at 44% OCR Demonstration led to a and Bt 5,280 ADR temporary closure of FS Bangkok 17
Hotel Business in 2Q10 Occupancy Rate (%) ADR (Bt/night) RevPar (Bt/night) Hotel 2Q10 2Q09 2Q10 %Chg 2Q10 %Chg Four Seasons -BKK 11% 39% 5,524 -1% 581 -73% Four Seasons -Ex-BKK 25% 28% 17,825 1% 4,542 -7% Anantara 41% 38% 6,091 -10% 2,484 -3% Marriott 53% 53% 3,155 -9% 1,680 -8% Others 27% 29% 7,289 -5% 1,934 -14% Average 41% 44% 5,002 -5% 2,038 -11% Avg. Thailand 41% 44% 3,895 -12% 1,612 -16% Occupancy Rate (%) ADR (Bt/night) RevPar (Bt/night) Hotel 6M10 6M09 6M10 %Chg 6M10 %Chg Four Seasons -BKK 44% 37% 5,627 -2% -17% 2,083 Four Seasons -Ex-BKK 36% 43% 18,438 -4% 7,943 13% Anantara 44% 42% 7,650 -11% -6% 3,394 Marriott 65% 61% 3,973 -5% 2,597 1% Others 30% 31% 9,674 2% 2,905 -1% Average 51% 50% 6,178 -2% 3,140 0% Avg. Thailand 54% 51% 5,066 -3% 2,722 3% 18
Hotel - 2Q10 Performance Snap Shot Average Occupancy of 41% 3% y-y Average ADR of Bt 5,002 5% y-y Q210 Q209 53% 53% 11,777 41% 38% 36% 29% 7,289 27% 6,091 -10% 15% 3,155 -9% Others Others Include all 4 Four Seasons hotels 19
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