Opportunity Day Presentation 4Q13/ FY13. Central Plaza Hotel Public Company Limited March 24, 2014

Transcription

1 Opportunity Day Presentation 4Q13/ FY13 Central Plaza Hotel Public Company Limited March 24, 2014

2 Disclaimer This presentation contains certain forward looking statements. Such forward looking statements are not guarantees of future performance and involve risks and uncertainties, and actual results may differ from those in the forward looking statements as a result of various factors and circumstances. The views, analyses and opinions expressed herein contain some information derived from publicly available sources and third party information providers. No representation or warranty is made as to the accuracy, completeness, or reliability of such information. This presentation should not be relied upon as any recommendation, view, opinion, representation or forecast of Central Plaza Hotel Plc. Nothing in this presentation should be construed as either an offer to sell, a solicitation of an offer to buy or sell shares or any type of securities in any jurisdiction. This presentation is not intended to be any type of investment advice and must not be relied upon as such. You must always seek the relevant professional advice before otherwise making any such financial, legal or commercial decisions. 2

3 Agenda o 4Q13/FY13 Financial Summary o Performance by Business o Hotel Business o QSR Business o Medium Term Outlook 3

4 4Q13/FY13 Financial Summary Centara Grand Azuri Resort and Spa Mauritius 4

5 Consolidated Earnings 4Q13/FY13: Core profit grew by 28% yoy from Bt1,064mn to Bt1,334mn in Higher depreciation expenses and lower food margin caused the overall decline in core profit for 4Q13 by 31%. THB million 4Q12 (Restated) 4Q13 % chg FY12 (Restated) FY13 % chg Hotel revenue 1,826 2, % 6,473 8, % Food Revenue 2,247 2, % 8,356 9, % Total Revenues 4,074 4, % 14,829 17, % Total Cost & Expense (Excl. depreciation allocated to cost) (3,365) (3,709) 10.2% (11,878) (13,692) 15.3% Equity Gain (Loss) 35 (3) % % Total EBITDA % 3,017 3, % EBITDA margin (%) 18.3% 19.7% 20.3% 21.7% Net Profit (Loss) before extra items % 1,064 1, % Loss on guarantee provision property fund Loss on re-measuring fair value of investments Extra-equity gain (loss) in property fund Gain from business combination CKR, CRF and CIRM (40) - (40) (7) (12) -71.3% % Net Profit % 1,596 1, % EPS (Baht per share) % 50% 100% 50% 0% 100% 50% 0% Total revenue by business 0% 38% 62% 21% 27% 34% 79% Food 55% 51% 56% 53% 45% 49% 44% 47% 4Q12 4Q13 FY12 FY13 EBITDA by business 27% 73% 73% 66% 38% 32% 62% 68% 4Q12 4Q13 FY12 FY13 Net profit by business Hotel 40% 60% 4Q12 4Q13 FY12 FY13 5

6 Million Baht CENTEL s Opportunity Day 4Q13 Financial position as at 31 Dec 13 Consolidated BS: Net D/E ratio improved to 1.6x Total Asset Total Liability Total Equity Net D/E Ratio 70,000 60,000 50, ,929 11, ,000 30,000 20,000 10,000 6,277 5,637 6,049 13,540 14,801 15,635 19,817 20,438 21,684 18,220 18,060 28,149 29,

7 Interest Bearing Debt Bt 11,455m at 31 Dec 13 with average cost of debt about 3.9% 6, ,000.0 Debt breakdown by major components 30-Sep Dec-13 5,144 5,082 As at 30 Sep Dec-13 Interest Bearing Debt/ Equity Bank overdraft 0.2% 1.1X 1.0X 4, , , , Bank overdraft 2,061 2,243 S-T loan 1,248 1,251 Current portion of L-T loans 42 Current portion of PPF2 2,798 2,798 L-T loans Debenture Debentur e Longterm loans 44.9% S/T Loan (30.7%) L/T Loan (69.3%) Shortterm loan 19.6% 24.4% 31-Dec-13 Fixed Rate (35.7%) Float Rate (64.3%) Bt3,512mn Bt7,943mn Current portion of Longterm loans 10.9% Bt4,086mn Bt7,369mn 7

8 Hotel Business Centara Grand Phrathamnak Pattaya 8

9 Hotels in pipeline: 4,473 rooms Total hotels in portfolio: 13,136 rooms CENTEL s Opportunity Day 4Q13 Hotel Portfolios including Pipeline Total 65 hotels: 43 hotels in operation by the end of 1Q14 22 hotels under development, scheduled to open between 2014 and 2017 Brands Thailand Bali China Maldives Mauritius Vietnam Sri Lanka Ethiopia Doha Total Centara Grand 4,320* ,645 Centara 4, ,056 Centra ,040 Centara Boutique Collection Centara Residence & Suite Cosi Total 9, ,136 Proportion of rooms: Owned vs. Managed Managed 71% 13,136 rms Owned, JVs, Property Fund 29% 2Q 4Q Total Thailand ,121 2,260 Bali China Maldives Vietnam Sri Lanka Ethiopia Doha Noted: * Included 2 nd phase of Centara Grand West Sand in 2017 Total 772 1, ,546 4,473 As at 8 Jan,2013 9

10 Hotels in Operation (1/2) Total 43 hotels (including 15 owned and JV properties and 28 hotels under management contract) in operation by the end of 1Q14 of 8,176 rooms. List of 15 owned & JV hotels (3,812 rooms) Asset types # Properties #Rms Owned & JV hotels 15 3,812 Hotels under management contracts 28 4,364 Grand total 43 8,176 Hotel Name #Rms Country Owned Hotels 1 Centara Grand at CentralWorld 512 Thailand 2 Centara Grand Ladprao 565 Thailand 3 Centara Grand Hua Hin 249 Thailand 4 Centara Grand Phuket 262 Thailand 5 Centara Grand Krabi 192 Thailand 6 Centara Grand Mirage Pattaya 555 Thailand 7 Centara Villas Phuket 72 Thailand 8 Centara Karon Resort Phuket 335 Thailand Hotel Name #Rms Country Owned Hotels (continued) 9 Centara Mae Sot Hill Resort 113 Thailand 10 Centara Hat Yai 245 Thailand 11 Centara Villas Samui 100 Thailand 12 Centara Grand Maldives 112 Maldives 13 Centara Maldives 140 Maldives Property Fund Hotel 14 Centara Grand Samui 202 Thailand Joint Venture Hotel 15 Centara Kata Resort Phuket 158 Thailand 10

11 Hotels in Operation (2/2) List of 28 hotels under management contract (4,364 rooms) Managed Hotel Hotel Name #Rms Country 16 Khum Phaya Resort, Boutique 87 THA 17 Centara Udon Thani 259 THA 18 Centara Chaan Talay, Trat 44 THA 19 Centara Duangtawan Chiang Mai 512 THA 20 Centara Sappaya, Rayong 13 THA 21 Centra Ashlee Hotel Patong 110 THA 22 Centara Anda Dhevi, Krabi 138 THA 23 Centara Plaza Hotel Pattaya 152 THA 24 Nova Hotel & Spa Pattaya, Boutique 79 THA 25 Chen La Resort & Spa Phu Quoc, Boutique 108 VNM 26 Waterfront Suites Phuket 39 THA 27 Centra Tuam Resort Bali 90 IND 28 Centara Grand West Sands, Phuket 316 THA 29 Centara Hotel Khonkaen 196 THA 30 Centara Sandy Beach Da Nang Vietnam 118 VNM 31 Centara Koh Chang Resort 157 THA Hotel Name #Rms Country 32 Centara Poste Lafayette, Maurittius 100 MUS 33 Centra Government Complex 204 THA 34 Centra Coconut Beach Samui 55 THA 35 Centara Watergate Hotel & Spa Bangkok 281 THA 36 Centara Passikudah Resort & Spa Srilanka 125 SRI 37 Khao Lak Seaview Resort & Spa, Centara 215 THA 38 Centra Central Station Bangkok 150 THA 39 Centara Grand Modus Pattaya 215 THA Centara Grand Phrathamnak Resort Pattaya Centara Grand Azuri Resort & Spa Mauritius 165 THA 100 MUS 42 The Blue Marine Resort & Spa Phuket 266 THA 43 Note: Centara Grand Azuri Residences & Suites Mauritius Opened in 1Q14 70 MUS 11

12 Revenue Contribution by Location Revenue Contribution: Diversified to overseas, Maldives, since 2012 CENTEL s Opportunity Day 4Q13 38% % 17% 17% 15% 15% 15% 9% 8% 3% 2% 7% 5% 8% 7% 1% 0% 1% Bangkok Hua Hin Hat Yai Krabi Pattaya Phuket Samui Tak Maldives Revenue Per Room Available RevPar (Bt) Bangkok Hua Hin Hat Yai Krabi Pattaya Phuket Samui Tak Maldives ,015 5,829 1,628 5,855 4,147 3,925 4, , ,097 5,663 1,643 5,244 4,460 3,464 4, ,376 12

13 New hotel 1Q14 (1/2) The Blue marine resort & spa Phuket managed by Centara Hotels & Resorts Located Northern end of Patong Beach, just across from Kalim Beach Star Target guests 4 stars The location and the resort facilities make this an ideal venue for couples, families, and those on corporate programmes or incentives tours

14 New hotel 1Q14 (2/2) Centara Grand Azuri Residences & Suites Mauritius Located Star Target guests Northeast coast of Mauritius 5 stars Those wanting to own a part of an exclusive resort style community on the idyllic lndian Ocean island of Mauritius, managed by Centara Grand Azuri Residences and Suites. Starts from US$ 500,

15 Hotel Performance Snapshot OCC, ARR and RevPar: Overall improved significantly due to the combination of good performance of key properties and contribution from Maldives which drove ARR drastically. The demonstration in Q413 have a negative impact mainly to Bangkok properties. OCC (%) 4Q12 4Q13 chg FY12 FY13 chg Grand 76.0% 79.3% 3.3% 71.4% 80.5% 9.1% Centara 71.9% 82.6% 10.7% 66.3% 78.1% 11.8% Average 74.8% 80.3% 5.5% 69.9% 79.8% 9.9% Total Revenue (Btmn) and # of rooms: 10,000 3,561 3,814 3,552 3,778 4, % 8,000 6,000 8,286 4, % 6,473 2,000-1,826 2,265 4Q12 4Q A 2013A Room F&B Others # of rooms 3,0 00 2,0 00 1, (1, 000) (2, 000) (3, 000) (4, 000) (5, 000) ARR (Bt) 4Q12 4Q13 %chg FY12 FY13 %chg Grand 4,380 5, % 4,270 4, % Centara 2,445 3, % 2,352 3, % Average 3,844 4, % 3,744 4, % RevPar(Bt) 4Q12 4Q13 %chg FY12 FY13 %chg Grand 3,330 4, % 3,047 3, % Centara 1,757 3, % 1,559 2, % Average 2,877 3, % 2,617 3, % Noted: *Included Maldives since ,000 3,000 2,000 1,000 - EBITDA (Btmn) and EBITDA margin: 25% 30% 29% 31% % 1,876 2,600 4Q12 4Q A 2013A EBITDA %EBITDA Margin Noted: *Excluded extra items and deferred rental income from PFPO % 20.00% +39% 0.00% % % % % %

16 Million Persons % % 0.00 % % % % CENTEL s Opportunity Day 4Q13 Tourism Arrivals In 2013, top source markets continue to contribute the significant growth, including tourists from China(+69%), Russia (+32%), Malaysia (+17%) and Japan (+12%) Number of International Tourist Arrivals to Thailand International Arrivals by Nationality: FY13 East Asia Europe Americas South Asia Oceania Middle East Africa Market OCC Centel OCC South Asia 5% Americas 4% Oceania 4% Middle East 2% Africa 1% % 61% 58% 64% 70% 56% 49% 51% 58% 61% 80% % Europe 24% East Asia 60% Nationality FY12 FY13 % yoy East Asia Europe The Americas A 2009A 2010A 2011A 2012A 2013A Airport Closure April Riot Source: BOT and TAT Rajprasong Protest Flooding in Central of Thailand Demonstration in 4Q13 South Asia Oceania Middle East Africa Total

17 Centara Guests by Region Guests by Region: Asia increased its portion significantly driven by Chinese Room Night Growth 2013: Despite smaller contribution, Europe continued its room night growth yoy driven by Russian. 40% 36% 2012A 2013A Others USA 23% 35% 27% Middle East 23% 21% 17% 16% 12% 10% 3% 3% 2% 2% 6% 6% Australia Asia Europe 2% 13% 64% Europe Asia Thailand Australia Middle East USA Others Thailand 12% Note: By number of Room Nights Others included Latin America, Canada, South America, etc. 17

18 Marketing Outlook 1H14 Overall upcountry Our beach resorts remain strong through Q1/2014 and into Q2/2014, especially the case for Phuket, Samui. Pattaya, quite linked to Bangkok, is seeing slow pickup, especially from Asian and Russian markets which drive volumes. Bangkok Bangkok hotels suffer from political tensions A positive conclusion to current issue, will see a speedy return for most market segments according to most sources Overseas Maldives units trend extremely strong Q1-Q2/

19 Food Business 19

20 # of outlets # of outlets CENTEL s Opportunity Day 4Q13 Food portfolio as at 31 Dec brands with total of 743 outlet : Additional 66 outlets in 2013 Mister Donut KFC Aunties Anne s Pepper Lunch Beard Papa s Chabuton Cold Stone Ryu Shabu Shabu The Terrace Ootoya Yoshinoya Tenya

21 Revenue Contribution by Brand Revenue Contribution: : Top 4 brands, KFC, MD, AA and Ootoya contribute about 90% of food revenue 2012A 2013A TEN 53.6% 52.1% YO TT RYU 19.9% CBT PL CSC BP 20.4% 8.1% 8.7% 6.6% 3.1% 8.5% 8.5% 7.9% 2.6% KFC Mister Donut Auntie Anne's Ootoya Other Heavy Foods Other Light Foods # of outlets KFC Mister Donut Auntie Anne s Ootoya Other Heavy Food Other Light Food Total 21

22 Food performance snapshot (1/2): FY13 s performance significantly impacted by consumption slowdown particularly in 4Q13 SSS TSS SSS TSS 4Q12 4Q13 4Q12 4Q13 KFC 7.5% -3.5% 18.0% 2.6% Mister Donut 0.2% -1.5% 13.6% 6.5% Auntie Anne s 2.1% -16.5% 31.4% -5.9% Pepper lunch -11.8% -4.0% 11.1% 6.7% Beard Papa s -20.6% -25.0% 8.0% -69.6% Chabuton -17.3% -3.3% 19.8% 22.8% Ryu 0.1% -27.2% 0.1% -27.2% Cold stone na -16.0% 84.9% 22.4% The terrace 1.2% 0.2% 70.1% 52.5% Yoshinoya -16.1% 2.3% 105.7% 59.0% Ootoya 2.5% 15.7% 13.0% 23.6% Average 3.8% -2.9% 20.0% 5.4% FY12 FY13 FY12 FY13 KFC 8.7% 0.7% 17.4% 6.7% Mister Donut 4.4% 4.5% 11.6% 12.6% Auntie Anne s 9.8% -2.1% 25.2% 13.9% Pepper lunch -7.2% -2.8% 34.4% 13.8% Beard Papa s -23.3% -21.6% 27.4% -46.5% Chabuton -27.9% -10.5% 59.5% 22.5% Ryu -7.7% -11.3% -7.5% -19.2% Cold stone -5.9% 52.7% 10.4% The terrace 3.6% 513.3% 53.9% Yoshinoya -11.9% 405.8% 74.5% Ootoya 2.4% 967.1% 7.4% Average 6.2% 0.9% 27.1% 9.7% 22

23 (10 0) (30 0) (50 0) 20.00% 0.0 0% % % % % % CENTEL s Opportunity Day 4Q13 Food performance snapshot (2/2): Total Revenue (Btmn) and # of outlets: FY13 s revenue growth is primarily due to outlet expansion EBITDA (Btmn) and EBITDA margin: EBITDA margin contraction in 4Q13 was mainly related to negative SSS growth 12,000 10,000 8, , , % 2,000 13% 10% 14% 13% 1,141 +5% 1,199 6,000 1,000 4,000 2,000 2,247 2,360 +5% % - 4Q12 4Q A 2013A - 4Q12 4Q A 2013A Sale Others # of outlets EBITDA %EBITDA Margin 23

24 Medium Term Outlook Centara Grand Modus Resort & Spa, Pattaya 24

25 Btmn CENTEL s Opportunity Day 4Q13 Portfolio Expansion Asset Light Expansion: Management fees and # of rooms Food Outlet Expansion: BKK VS Upcountry Management Fees # of JV and managned rooms Bangkok Upcountry ,236 5,136 6,720 8, % % ,866 3, % 59% 55% 50% A 2012A 2013A 2014E 2015E 2016E Note: assumed 8-10 new contracts per annum plus 3-4 hotels for COSI brand since A 2012A 2013A 2016E 25

26 Earning prospects VS. Investment Revenue by business: 4-year CAGR=12% Investment (Btmn) Hotel Food CAPEX M&A Net D/E Ratio 3, % 53% 56% 55% 58% 44% 47% 44% 45% 42% 2012A 2013A 2014E 2015E 2016E 2,500 2, , EBITDA by business: 4-year CAGR =15% Hotel Food 1, % 32% 31% 31% 34% % 68% 69% 69% 66% A 2013A 2014E 2015E 2016E A 2013A 2014E 2015E 2016E Note: Included COSI in total of Bt254mn and Bt351mn, in 2014E and 2015E,respectively 26

27 CENTEL Milestone 2009 Hotel 19 hotels (13 owned/jvs and 6 managed) QSR 5 Brands 478 outlets 2018E Hotel 80 hotels (21 owned/jvs and 59 managed) QSR 14 brands > 950 outlets 2013 Hotel 42 hotels (15 owned/jvs and 27 managed) QSR 12 brands 743 outlets 27

28 Thank you Centra Central Station Bangkok 28