MINOR INTERNATIONAL MINT’S 1Q09 Analyst/Investor Meeting Stock Exchange of Thailand May 14, 2009
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 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
Agenda • Recent Development & Key Business Performance • 1Q09 Financial Results • Industry Update: A Silver Lining • MINT’s Strategy: 2009 Priority 3
Recent Developments • MINT paid out interim dividend to its shareholders on Feb 11, 2009 at Bt0.23 per share, totaling of Bt 831m. • MINT & MINOR shareholders have approved the business restructuring plan to eliminate cross shareholding in March 2009. Thailand’s SEC has also approved the plan and tender offer for MINOR shares with the swap ratio of 1 MINOR share to 1.14 MINT shares on May 7, 2009. Tender offering period is May 11 to June 12 (25 working days). • In 1Q09, MFG’s food outlets reached 1,064, increasing 21 outlets. All remaining Le Jazz outlets were closed down in April. • Anantara BaanRajprasong Serviced Suites, the 4th purely-managed under Anantara Hotel Management, has been opened in March 2009 • MINT has successfully secured 7-year long-term loan of Bt4 billions from KBANK and BAY in April 2009. 4
Key Performance Update 5
Total System Sales in 1Q09 14% 4% 12% Bt 1,264 m Bt 191 m Bt 406 m 8% 15% 73% 17% Bt 632 m Bt 217 m Bt 522 m Bt 1,660 m Note: Growth is year on year calculations based on total system sales, including franchised stores, in local currencies. 6
1Q09 Food Performance SSS (%) TSS (%) GDP Growth Brand Country 1Q09 4Q08 1Q09 4Q08 1Q09 4Q08 0.5 -2.4 13.6 13.6 -4.1 -3.6 8.3 10.2 n.a. 3.3 9.4 11.6 10.8 -4.3 Thailand 11.0 15.2 14.6 24.4 -7.4 -7.2 3.6 6.9 2.7 1.3 17.3 15.5 n.a. 0.3 Australia -8.9 -1.1 72.9 85.4 -11.5 -4.2 Singapore Average 0.1 0.5 16.1 17.9 Note: Calculations based on weighted sales of all brands in local currencies. 7
Key Issues in Food Business this quarter • Strong total system sales growth derived from aggressive shop expansion and newly acquired food outlets in 2008. • Flat SSS in 1Q09 was due mainly from a steady growth of Sizzler and a strong recovery of TPC in March. • Swensen’s same store sales growth declined 4%, however, the sacrifice was more than offset with an 8% increase in total system sales. Sales strategy in the coming months aim for lower-tier marketing promotions such as Chocolate Sundae, and Birthday Cake TV tied-in programs. • Thai Express showed a solid TSS over 70%, its SSS dropped mainly from Singapore’s contracted GDP which profoundly impacted high price-per-docket shops such as Shokudo, while Thai restaurant (Thai Express) showed a flat growth. Key actions to drive top-line are Inter- brand with local banks promotions, Value meal and Student special menus. 8
Hotel Revenue Growth 1Q09 +4% y-y +4% q-q -30% y-y -30% y-y -4% q-q 0% q-q Bt 588 m Bt 452 m Bt 650 m 9
1Q09 Hotel Performance Occupancy (%) ADR (Bt/night) RevPar (Bt/night) Hotel 1Q09 4Q08 1Q09 4Q08 1Q09 4Q08 47% 43% 9,738 10,644 4,613 4,632 51% 52% 10,692 9,607 5,493 4,987 70% 63% 4,751 4,796 3,321 3,021 33% 41% 10,984 8,833 3,651 3,632 Average-Thai 61% 55% 5,900 6,016 3,593 3,292 Average 58% 55% 7,228 7,163 4,210 3,928 10
Key Issues in Hotel Business this quarter • Year on year performance was adversely impacted by the 15% decrease in tourist arrivals in 1Q09, however, q-q wise, it showed a 12% increase. • Thai hotel industry reported 2% decrease in ADR and a drop of average occupancy to 53% y-y. However, q-q wise, occupancy rate improved from 50% in 4Q08 with an increase of 14% in ADR. • MINT’s 1Q09 hotel occupancy of 58% picked up from 55% in the previous quarter and outperformed the industry average. MINT’s Thai hotels reported 61% occupancy compared to 55% in 4Q08. • Overall inbound traveling demand remains fair despite unfavorable factors. Targeting leisure travelers becomes more attractive as demand for corporate & group decreased. • MINT’s 2009 hotel strategy is to explore the value-adding services rather than discount pricing, in addition to our effective operating & HR cost management. Key emphasis on Anantara brand remains important. 11
Recap: MINT’s Brand Portfolio Retail & Food Hospitality & Residential Residential Entertainment 67 units Spa 30 spas >30,000 sqm. 1,064 outlets 27 hotels (> 3,000 rooms) 12
1Q09 Financial Results 13
1Q09 Consolidated Performance (Bt Million) 1Q09 % 1Q08 % % Growth Food Services 2,681 62% 1,964 45% 36% Hotel Services 1,340 31% 1,917 44% -30% - Hotel Operations 1,267 29% 1,792 41% -29% - Management Services 73 2% 125 3% -42% Residential Property 9 0% 150 3% -94% Other Business 225 5% 261 6% -14% Share of profit 59 1% 72 2% -17% Total Revenue 4,314 100% 4,363 100% -1% Operating Expenses 1,345 31% 1,388 32% -3% SG&A Expenses 1,923 45% 1,604 37% 20% EBITDA 1,047 24% 1,371 31% -24% Depreciation & Amortization 377 9% 319 7% 18% EBIT 669 16% 1,052 24% -36% Interest Expenses 110 3% 87 2% 26% Tax 134 3% 194 4% -31% Minority 25 1% 20 1% 25% Net Profit 400 9% 750 17% -47% 14
1Q09 Breakdown Performance EBITDA Contribution (Bt Million) 1Q09 % Hotel Food Services 2,681 62% 48% Hotel Services 1,340 31% - Hotel Operations 1,267 29% - Management Services 73 2% Residential Property 9 0% Residential Property Other Business 225 5% 0% Share of profit 59 1% Other Business 11% Total Revenue 4,314 100% Share of profit Operating Expenses 1,345 31% Food 6% 35% SG&A Expenses 1,923 45% EBITDA 1,047 24% Net Profit Contribution Depre. & Amort. 377 9% EBIT 669 16% Food Services 106 27% Interest Expenses 110 3% Hotel Services 217 54% Tax 134 3% Residential Property - 0% Minority 25 1% Other Business 77 19% Net Profit 400 9% Consolidated Net Profit 400 100% 15
Quarterly performance Net Profit EPS Net Profit Net Profit Margin 0.30 800 17% 0.25 14% 0.23 600 0.20 11% 10% (Bt/share) 9% 9% 9% 0.17 0.15 (Bt m) 7% 400 0.12 0.12 0.11 0.10 0.11 0.10 200 0.07 0.05 0 0 2Q07 2Q08 3Q07 3Q08 4Q07 4Q08 1Q08 1Q09 2Q07 2Q08 3Q07 3Q08 4Q07 4Q08 1Q08 1Q09 16
Efficiency Ratio Return on Assets Return on Equity Total Parent's Shareholders' Equity 14,000 30,000 Adjusted Return on Equity Total Assets Adjusted Return on Assets 9.3% 9.2% 20.4% 9.0% 20.0% 12,000 25,000 8.1% 18.5% 16.4% 10,000 6.6% 20,000 13.4% 8,000 (Bt m) (Bt m) 15,000 6,000 10,000 4,000 5,000 2,000 0 0 1Q08 2Q08 3Q08 4Q08 1Q09 1Q08 2Q08 3Q08 4Q08 1Q09 Note: Calculations based on revolving 4 quarters Return on Assets = Profit Before Minorities / Total Assets Return on Equity = Net Profit / Total Parents’ Shareholders’ Equity 17
Balance Sheet Interest Bearing Debt-to-Equity (x) Equity Interest Bearing Debt Other Liabilities 30,000 0.75 0.73 25,000 0.71 0.69 0.65 20,000 Assets 25,196 MB Assets 23,919 MB Assets 25,064 MB Assets 24,929 MB Assets 23,748 MB (Bt m) 15,000 10,000 5,000 0 1Q08 2Q08 3Q08 4Q08 1Q09 Note: Debt to Equity Ratio = Interest Bearing Debt / Total Equity 18
Interest Coverage Ratio EBITDA Interest Expense Interest Coverage Ratio 1,500 12.6 12.3 12.3 11.4 1,250 9.9 1,000 (Bt m) 750 500 250 0 1Q08 2Q08 3Q08 4Q08 1Q09 Note: Calculations based on revolving 4 quarters; Interest Coverage Ratio = EBITDA / I 19
Recap: MINT’s Payout to Shareholders Dividend Payment (Bt) Dividend Yield (%) (Including stock dividend at par value) Cash Stock* Note: * Stock dividend of 10:1 (or Bt0.10 at par) in 2004 and 2007 ** Interim dividend payment (for 9-month operation) 20
Industry Update: A Silver Lining 21
Foreign Visitors to Thailand vs. MINT’s Hotel Occupancy (Million) 2.0 Significant impact due to the high tourism season months 85% 81% 79% 75% 1.5 72% 67% 66% 66% Airport 61% 60% 60% 60% Closure 56% 49% 1.0 43% 0.5 0 Jan-08 Mar-08 May-08 Jul-08 Sep-08 Nov-08 Jan-09 Mar-09 No. of Foreign Visitors MINT’s Thai Hotels’ Average Occupancy (%) 22
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