Elewana Taragiri Treetop Resort, Tanzania Minor International Investor/Analyst Presentation 1Q 2010 Performance & Business Outlook 9 June 2010 Prapharat Tangkawattana Senior Finance Director Bernard Gawkasem Director of Strategic Planning
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Today’s Agenda ‣ 1Q10 Key Development & Financial Performance ‣ Discussion Issues in Thailand & Their Impacts ‣ Are We Up to the Challenges? ‣ 2010 Outlook ‣ Pipeline Expansion & Capex ‣ Q&A Appendix: MINT’s hotel & restaurant portfolio
1Q10 Key Developments & Financial Performance
Key Developments in 1Q10 Restaurant: ‣ Food outlets reached 1,117; 689 are owned, while 428 are franchised ‣ First TPC and SW outlets opened in Vientiane, Laos Hotel & Residence ‣ Elewana Afrika, MINT’s 50% owned safari resort, acquired Kilindi Resort of Zanzibar. A 15 pavilions with uShawari spa opened for operation on 25 May. ‣ Secured 3 additional sales & purchase contracts of St. Regis residence (for a total of 5 units) ‣ St. Regis’s mock-up guest room and residential units are complete in March - April 2010 Retail Trading: ‣ Points of sales totaled 279 including 204 fashion outlets, 58 cosmetic outlets and 17 of others ‣ GAP’s first mega store opened at Central World on 5 March. After the incident, the temporary 150 Sqm shop opened at Emporium between May-June to alleviate the diverse impact ‣ Plan on track for opening Gap stores inSiam Paragon in 3Q10 and Paradise Park & Central Laprao in 4Q10 Finance: ‣ Successfully launched a 5-year Bt 2.5 bn debenture with coupon rate of 3.98% in May 2010 5
Economic Condition: Positive Signs in 1Q10 ‣ 1Q10 GDP grew 12% y-y, supported by global economic recovery as well as better investor confidence. Exports, tourism, private investment and consumption collectively improved Key Economic Indicator 2009 2010 (% y-y) 1Q09 2Q09 3Q09 4Q09 1Q10 GDP (at constant price) -7.1% -4.9% -2.7% 5.9% 12.0% Private Investment -17.8 -16.1 -12.2 -4.6 15.8 (at constant price) Private Consumption -2.5 -2.2 -1.3 1.4 4.0 (at constant price) Export of Goods -19.9% -26.1% -17.5% 12.2% 32.2 SET Index (Point) 431.5 597.5 717.1 734.5 788.0 Tourist Arrival -16% -16% -3% 28% 28% Source: NESDB 6
Financial Performance Snap Shot ‣ Revenue was up 23% mainly from hospitality business achieving strong results in period of increased tourist activities and consolidation of Minor Corporation ‣ Net Profit was up 50% to Bt 600 m mainly from high season in hospitality business and successful administrative cost control in food business Profitability (% margin) (Bt Million) 1Q10 % Change 30 EBITDA Net Profit Total Revenue 5,326 23% 25 24 20 21 EBITDA 1,270 21% 15 Net Profit 600 50% 10 11 9 5 EPS (Bt) 0.1832 56% 0 1Q10 1Q09 7
Solid Revenue Growth in 1Q10 Breakdown Revenue Growth Revenue Contribution (Bt m) 6,000 5 696 Hotel & Spa 207 105 32% -1 4,000 Plaza&Entertain 3% 5,326 4,314 Increased Retail Trading Restaurant 2,000 23% y-y 13% 52% 0 1Q09 Food Hotel& Spa Plaza& Entertain Retail Trading Share of Profit 1Q10 8
Operating Excellence Drives Profitability EBITDA Contribution Net Profit Contribution Hotel & Spa 52% Plaza&Entertain Plaza&Entertain 10% 8% Retail Trading Hotel & Spa Retail Trading 2% 55% 3% Restaurant Restaurant 33% 37% (Bt m) 1Q10 % chg (Bt m) 1Q10 % chg Restaurant Restaurant 474 22% 197 77% Hotel & Spa Hotel & Spa 657 17% 328 44% Residence Residence 5 37% - n.a. Plaza & Entertainment Plaza & Entertainment 96 3% 62 -1% Retail Trading Retail Trading 38 n.a. 13 n.a. EBITDA Net Profit 1,270 21% 600 50% 9
1Q10 Consolidated Financial Performance % y-y (Bt Million) 1Q10 % 1Q09 % Change Restaurant 2,737 51% 2,632 61% 4% Hotel & Spa 1,678 32% 1,471 34% 14% Mixed-Use 10 0% 9 0% 5% Plaza & Entertainment 141 3% 143 3% -1% Retail Trading 696 13% - 0% n.a. Share of Profit – Restaurant 28 18 1% 1% 12% Share of Profit – Hotel & Spa 37 42 Total Revenue 5,326 100% 4,314 100% 23% Operating Expenses 1,850 35% 1,345 31% 38% SG&A Expenses 2,206 41% 1,923 45% 15% EBITDA 1,270 24% 1,047 24% 21% DA 398 7% 377 9% 5% EBIT 872 16% 669 16% 30% Net Profit 600 11% 400 9% 50% EPS (BT) 0.1832 0.1171 56% Weighted Share (m) 3,276 3,418 -4% 10
Hotel & Residence Businesses
Tourist Arrivals to Thailand ‣ Foreign Tourist arrivals in 1Q01 was 4.7 Number of Foreign Tourist Arrivals to Thailand million, an increase of 28% y-y and increase of 9% from previous quarter due to hospitality (‘000) 2,000 business benefiting from an increase in global 2010 travel and tourism 2009 ‣ 2008 The riots during April - May left significant 1,500 concerns over the safety of tourists in Thailand and reduced the number of foreign tourists 1,000 ‣ NESDB previously forecasted foreign tourist arrivals for the year 2010 approximately 13 million, less than TAT’s target of 16 millions (or 500 Jan Mar May Jul Sep Nov a decrease of 8%, compared to 14.1 million tourists in 2009) Source: Bank of Thailand 12
Hotel Business Sentiment Update ‣ April riot ‣ Tourist arrivals ‣ Airport closure ‣ Fierce price ‣ 28% growth in ‣ Profit break- hit record high aftermath competition tourist arrivals even at ‣ Strong ‣ Resumption of vs. 4Q08 occupancy improvement in tourist arrivals ‣ Shorter lead- rate 44% profitability with 17% y-y time in hotel in September booking 100% 7,160 6,996 6,133 75% 5,284 4,749 50% 25% 0% 1Q09 2Q09 3Q09 4Q09 1Q10 Occupancy ADR (Bt) 13
1Q10 OR and RevPar Have Grown y-y ‣ Good recovery in 1Q10 Occupancy levels to 61% from 57% in 4Q09 and 56% in 1Q09 ‣ ADR remains under competitive pressure however growth from 4Q09 achieved in most properties ‣ Property RevPar under pressure from a highly competitive market but have managed to maintain competitor set positions Occupancy Rate (%) ADR (Bt/night) RevPar (Bt/night) Hotel 1Q10 1Q09 1Q10 %Chg 1Q10 %Chg Four Seasons 63% 47% 9,420 -3% 5,929 29% Anantara 48% 46% 9,011 -12% 4,313 -8% Marriott 77% 70% 4,566 -4% 3,523 6% Others 34% 33% 11,580 5% 3,887 6% Average 61% 56% 6,996 -2% 4,253 6% Avg. Thailand 66% 58% 5,828 0% 3,844 13% Avg. Overseas 40% 44% 14,606 -11% 5,884 -19% 14
Hotel - 1Q10 Performance Snap Shot Average Occupancy of 61% Average ADR of Bt 6,996 5% y-y 2% y-y % Change 1Q10 1Q09 5% -3% -4% 70% -12% 47% 46% 11,580 77% 9,420 63% 9,011 33% 48% 34% 4,566 $140 $275 $285 $350 t a s s t a s s t t Others n Others r n r r r o o e e a a o o i i r t h r t h s s n n r r t t a a a a O O a a M M e e n n S S A A r r u u o o F F 15
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