Quarterly Meeting# 2/2017

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Evan Hubbard
5 years ago
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Quarterly Meeting# 2/2017 1Q17 Performance &

2 The views expressed here contain some information derived from publicly available sources that have not been independently verified. No representation or warranty is made as to the accuracy, completeness or reliability of the information. Any forward looking information in this presentation has been prepared on the basis of a number of assumptions which may prove to be incorrect. This presentation should not be relied upon as a recommendation or forecast by The Erawan Group PLC. Nothing in this release should be construed as either an offer to sell or a solicitation of an offer to buy or sell shares in any jurisdiction ERAWAN. All rights reserved.

Our core performance in 1Q17 hit record high with revenue 1,620 MB (+5% from 1Q16) and net profit 208

3 Executive Summary Number of tourists in 1Q17 posted at 9.2 million, (+ 2% from 1Q16) which is the highest arrivals by quarter. Our core performance in 1Q17 hit record high with revenue 1,620 MB (+5% from 1Q16) and net profit 208 MB (+9% from 1Q16) Our hotel development progressed as planned, +1 HOP INN Thailand (Burirum) resulting to 42 hotels (6,464 rooms) at the end of 1Q ERAWAN. All rights reserved.

Agenda Industry Updates Performance Review 1Q17 Outlook & Strategy

5 International Tourist Arrivals 3.5 1Q millions, +2% y-y Millions 2014 YTD 6.4 M 2015 YTD 7.8 M 2016 YTD 9.0 M 2017 YTD 9.2 M YoY Jan Feb Mar Apr May June July Aug Sep Oct Oct Nov Nov Dec Dec +7% -3% +2% %YoY Source : Department of Tourism as of Mar ERAWAN. All rights reserved.

6 Tourist Arrivals by Source Markets Oceania The 2% Americas 4% South Asia 5% Europe 24% Middle East 2% Africa 1% 9.2 Million East Asia 62% Continent 1Q17 YoY East Asia 2% Europe 7% The Americas 13% South Asia 16% Oceania 1% Middle East 16% Africa 3% Total 2% 1Q17 Contribution Source : Department of Tourism as of Mar ERAWAN. All rights reserved.

7 Tourist Arrivals by Key Source Markets 1Q16 Weight 1Q17 Weight YoY China 29% 27% 7% Malaysia 10% 9% 8% Russia 4% 5% 37% South Korea 5% 5% 9% Japan 4% 4% 7% Laos 4% 4% 10% India 3% 3% 18% Germany 3% 3% 0% United States 3% 3% 8% United Kingdom 3% 3% 6% Other 32% 33% 5% Grand Total 100% 100% 2% Source : Department of Tourism as of Mar ERAWAN. All rights reserved.

9 Statistic Summary 1Q17 (ex. Budget) %OCC No. of Rooms 65% 82% 88% 88% 3,885 4,501 4,501 4,501 1Q14 1Q15 1Q16 1Q17 1Q14 1Q15 1Q16 1Q17 Average Room Rate (THB/Room) 4% RevPAR (THB/Room) 4% 2,803 2,743 2,253 2,370 2,468 2,663 2,691 1,743 1Q14 1Q15 1Q16 1Q17 1Q14 1Q15 1Q16 1Q ERAWAN. All rights reserved.

11 Core Performance Summary Best quarter with the highest operating performance Group Operating Income 5% YoY 1,000 1,448 1,536 1,620 1Q14 1Q15 1Q16 1Q17 EBITDA 10% YoY Q14 1Q15 1Q16 1Q17 Normalized Net Profit 19% YoY (2) (Unit in MB, unless otherwise indicated) 1Q14 1Q15 1Q16 1Q ERAWAN. All rights reserved.

12 Hotel Revenue Hotel Revenue 1Q17 5% 953 1,398 1,485 1,565 1Q14 1Q15 1Q16 1Q17 Room Revenue 1Q17 6% ,009 1,074 1Q14 1Q15 1Q16 1Q17 F&B Revenue 1Q17 3% Q14 1Q15 1Q16 1Q17 (Unit in MB, unless otherwise indicated) ERAWAN. All rights reserved.

13 Room Revenue by Country of Residence Top 10 Country of Residences by Room Revenue 16% 15% 12% 13% 11% 10% 1Q16 1Q17 4% 5% 5% 5% 4% 4% 5% 4% 4% 4% 4% 4% 4% 3% China Thailand United States Russia Singapore India Germany Hong Kong United Kingdom South Korea *Exclude HOP Philippines ERAWAN. All rights reserved.

14 Consolidate Profit & Loss Statement In Baht Millions 1Q16 1Q17 %Y-Y Hotel Income 1,485 1,565 5% Rental and Service Income % Total Operating Income 1,536 1,620 5% Other Income % Total Income 1,545 1,635 6% Operating Expenses (1,041) (1,078) 4% EBITDA % Depreciation (180) (180) Interest Expenses (93) (84) Taxes (44) (59) Minority Interest (7) (19) Normalized Net Profit/(Loss) % Extraordinary Items Share of Profit /(Loss)in ERWPF 8 (7) Gain from sale of shop house 3 - Net Profit/(Loss) % ERAWAN. All rights reserved.

15 Summary of Financial Position Total Assets Total Interest Bearing Debt (MB) & Interest-bearing Debt to Equity (x) 9,000 14,911 15,229 8, Q17 Total Liabilities 7,000 6,000 5, ,839 9,946 4, Q17 Average Cost of Debt vs Average MLR (%) Q17 Total Equities 5,073 5, Q17 Avg Cost of Debt Avg MLR 3.97% Q ERAWAN. All rights reserved.

18 2017 Key Driver #1 Moving Forward with the Strong Growth of Thailand Tourism 6% Million F TSUNAMI Coup Protest Protest Protest Protest Protest Source : Department of Tourism as of Jan ERAWAN. All rights reserved.

20 2017 Key Driver #2 First Full Year Operation of Hotels opened in 2016 Expected ARR increase in All Segments Revenue Growth Thailand 9% Philippines 3441% LUXURY 7% MIDSCALE 5% ECONOMY 11% 3441% BUDGET 39% ERAWAN. All rights reserved.

21 Hotel Revenue by Segment 1Q17 5% Revenue growth in all segments both room and F&B revenue Luxury Segment 2% Midscale Segment 4% 1Q14 1Q15 1Q16 1Q17 Economy Segment 4% 1Q14 1Q15 1Q16 1Q17 Budget Segment 66% 1Q14 1Q15 1Q16 1Q17 1Q14 1Q15 1Q16 1Q17 remark : Exclude HOP Philippines ERAWAN. All rights reserved.

22 2017 Key Driver #3 Additional Room Inventory in High Growth Segment +8 HOP Thailand +1 HOP Philippines +624 room Thailand +144 room Philippines 50 7, , No. of Hotels No. of rooms ERAWAN. All rights reserved.

2017 Hotel Opening Quarter 1 Quarter 2 Quarter 3 Quarter 4 March Opening HOP INN #23 Burirum (+79 Rooms) April Opening HOP INN #24 Rayong May To be opened HOP INN #25 Chiangrai To be opened HOP INN

23 2017 Hotel Opening Quarter 1 Quarter 2 Quarter 3 Quarter 4 March Opening HOP INN #23 Burirum (+79 Rooms) April Opening HOP INN #24 Rayong May To be opened HOP INN #25 Chiangrai To be opened HOP INN #27 Hua Hin HOP INN Philippines #2 Makati To be opened HOP INN #28 Mae Sot 2 HOP INN #29 Nakornsawan HOP INN #30 Khon Kaen2 June To be opened HOP INN #26 Lampang 2 Total 42 Hotels 6,464 Rooms Total 45 Hotels 6,697 Rooms Total 47 Hotels 6,916 Rooms Total 50 Hotels 7,153 Rooms ERAWAN. All rights reserved.

24 2017 Philippines Development Plan UPDATE Quezon City Location Target Opening 1. Ermita Opened Dec Makati 3Q17 3. Aseana Alabang Quezon City Ortigas 2019 Manila Ermita Aseana Makati Ortigas Alabang ERAWAN. All rights reserved.

Philippines 6 Hotels 26% HOP INN Thailand

25 2017 Development Plan 22 Hotels 2,680 rooms under development 16% Asset Improvement 30% 2,200 MB Midscale and Economy Thailand 4 Hotels 28% HOP INN Philippines 6 Hotels 26% HOP INN Thailand 12 Hotels % By CAPEX proportion ERAWAN. All rights reserved.

Agenda Industry Updated Performance Review 1Q17 Outlook & Strategy

28 Operating Income by Segment 1Q17 Contribution Y-Y Luxury 49% 2% Midscale 24% 4% Economy 20% 4% Budget 4% 66% Rental 3% 6% Total Group 5% Note : Exclude HOP INN Philippines ERAWAN. All rights reserved.

30 EBITDA by Segment 1Q17 Contribution Y-Y Luxury 43% 9% Midscale 25% 5% Economy 23% 6% Budget 5% 68% Rental 4% 19% Total Group 10% Note : For illustration purpose only EBITDA by Segment is calculated without taking non-property-specific expenses into account. Exclude HOP INN Philippines ERAWAN. All rights reserved.

31 EBITDA by Destination 1Q17 Contribution Y-Y Bangkok 59% 12% Pattaya 18% 2% Phuket 10% 13% Other 13% 7% Total Group 10% Note : For illustration purpose only. EBITDA by Destination is calculated without taking non-property-specific expenses into account. Exclude HOP INN Philippines ERAWAN. All rights reserved.

Quarterly Meeting# 4/2018

Quarterly Meeting# 4/2018 3Q18 & 9M18 Performance & Outlook 14 November 2018 1 2016 ERAWAN. All rights reserved. The views expressed here contain some information derived from publicly available sources