Opportunity Day Presentation 1Q14. Central Plaza Hotel Public Company Limited June 4, 2014

Transcription

1 Opportunity Day Presentation 1Q14 Central Plaza Hotel Public Company Limited June 4, 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 1Q14 Financial Summary o Performance by Business o Hotel Business o QSR Business o Medium Term Outlook o Appendix 3

4 1Q14 Financial Summary Centara Grand Resort and Spa, Maldives 4

5 Consolidated Earnings 1Q14: Core profit dropped by 22.7% yoy to Bt501.9mn, mainly caused by Significant drop in occupancy for hotels in Bangkok as a result of political unrest; and Consumption slow down which resulted in low same store sale growth for food business. Total revenue by business THB million 1Q13 1Q14 % chg Hotel revenue 2, , % Food Revenue 2, , % Total Revenues 4, , % Total Cost & Expense (Excl. depreciation allocated to cost) 3, % Equity Gain (Loss) % Total EBITDA 1, , % EBITDA margin (%) 28.4% 25.3% Net Profit (Loss) before extra items % Net Profit % EPS (Baht per share) EBITDA by business Net profit by business 5

6 Million Baht CENTEL s Opportunity Day 1Q14 Financial position as at 31 Mar 14 Consolidated BS: Net D/E ratio improved from 1.6x to 1.4x +4.3% -6.4% -2.3% 6

7 Interest Bearing Debt: Outstanding balance as at 31 Mar 14 of 10,756MB with an average cost of debt 4.3% Interest Bearing Debt 31 Dec 13 vs. 31 Mar 14 As at 31-Dec Mar-14 Interest Bearing Debt/ Equity 1.0X 0.9X Proportion of interest bearing debt by type S/T Loan (29.9%) L/T Loan (70.1%) Bt3,218mn Bt7,538mn Fixed Rate (33.4%) Float Rate (66.6%) Bt3,591mn Bt7,165mn 7

8 Hotel Business Centara Grand West Sand Resort & Villars Phuket 8

9 Hotels in pipeline: 5,138 rooms Total hotels in portfolio: 13,314rooms Hotel Portfolios including Pipeline Total 67 hotels, including 43 hotels in operation and 24 hotels under development, scheduled to open between 2014 and 2017 Brands Thailand Bali Laos Maldives Mauritius Vietnam Centara Grand Sri Lanka CENTEL s Opportunity Day 1Q14 Ethiopia Doha Oman China Total 4, ,719 Centara 4, ,160 Centra ,040 Centara Boutique Collection Centara Residence & Suite Cosi Total 9, ,314 Proportion of rooms: Owned vs. Managed 13,314 rms 2Q 4Q Total Thailand * 1, ** 2,571 Bali Laos Maldives Vietnam Sri Lanka Ethiopia Doha Noted: * Included 2 nd phase of Centara Grand West Sand in 2017 **Included 2 nd phase of Centara Sappaya in 2015 As at 24 March, 2014 Oman China Total ,380 1,613 5,138 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) Owned Hotels Hotel Name #Rms Country 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 Asset types # Properties #Rms Owned & JV hotels 15 3,812 Hotels under management contracts Owned Hotels (continued) Hotel Name #Rms Country 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 28 4,364 Grand total 43 8, 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 Total 28 hotels 4,364 Opened in 1Q14 70 MUS 11

12 New hotel 2Q14 Centara Ceysands Resort and Spa Sri Lanka Located Star Target guests A superb location with the Bentota River on one side and the Indian Ocean on the other 4 Stars The resort offers accommodation options to suit the needs of couples and families alike with a choice of 165 rooms and suites ranging from 38 to 139 square metres in size 12

13 Hotel Performance Snapshot Occupancy, Average Room Rate and RevPar Bangkok, Pattaya and Hat Yai reported negative RevPar growth yoy mainly due to the turmoil. Strong performance in Maldives is noted. Total Revenue (Btmn) and # of rooms available 2,351 2,328-1% -23% OCC (%) 1Q13 1Q14 chg Bangkok 78.1% 48.2% -29.9% +11% Upcountry 87.1% 85.9% -1.2% Maldives 79.8% 90.3% +10.5% ARR (Bt) 1Q13 1Q14 %chg EBITDA* (Btmn) and EBITDA margin: Bangkok 3,181 2, % Upcountry 5,173 5, % Maldives 20,665 21, % -1% RevPar(Bt) 1Q13 1Q14 %chg Bangkok 2,485 1, % Upcountry 4,505 4, % Maldives 16,488 19, % Noted: *Excluded extra items and deferred rental income from PFPO 13

14 Revenue Contribution by Location CENTEL s Opportunity Day 1Q14 Significant reduction in revenue from Bangkok in 1Q14 due to the political unrest, whilst big jump in contribution from Maldives. For FY14, expecting contribution from Maldives to account for around 19-20%. Revenue Per Room Available RevPar (Bt) Bangkok Hua Hin Hat Yai Krabi Pattaya Phuket Samui Tak Maldives 1Q13 2,485 6,688 1,221 5,910 5,048 4,791 4, ,488 1Q14 1,391 6,963 1,060 6, ,874 4, ,689 % change -44.0% 4.1% -13.3% 3.2% -6.8% 1.7% 1.5% 11.6% 17.5% 14

15 Million Persons CENTEL s Opportunity Day 1Q14 Tourism Arrivals In 1Q14, no. of tourist arrivals decreased 6% yoy, particularly those from Hong Kong, China and Japan. Tourist arrivals from Europe grew 7%, driven by Russian. Number of International Tourist Arrivals to Thailand International Arrivals by Nationality: 1Q Nationality 1Q13 1Q14 % yoy East Asia Europe The Americas South Asia Oceania Airport Closure April Riot Source: BOT and TAT Rajprasong Protest Flood in Central of Thailand Demonstration in 4Q13 Middle East Africa Total

16 Centara Guests by Region Guests by Region: European guest increased proportion due to economic recovery, while Asian down due to the unrest. Room Night Growth 1Q14 yoy: Note: By number of Room Nights Others included Latin America, Canada, South America, etc. 16

17 Marketing Updates Bangkok Pattaya Samui Phuket Maldives The market challenges continue to take a toll on Bangkok properties With current political issues, a glut of rooms in the market means everyone was chasing online and leisure, which are growing but still much reduced over normal trading environment Like Bangkok, Pattaya also faces a challenge from slowing arrivals, especially from Asian markets that usually pick up the slack left post high season from Russian market Trading starts to turn round by changing source markets and engaging more with market driven discounts Continued strong demand allows us to yield our inventory effectively, especially in Chaweng Q2 continues positive trend Impacted by date change of Easter YOY, market becomes tougher, more from shifting market sources than political issues Markets like Phuket but are more price sensitive Both resorts continue to benefit from good distribution and related demand Occasional months will have a challenge due to shifting seasonality /holiday periods YOY, but overall expectation is for solid performance in

18 Food Business The Terrace 18

19 Food performance snapshot (1/1): Consumption slowdown continued to impact performance of food business. SSS (%) TSS (%) Number of Outlets 1Q13 1Q14 1Q13 1Q14 1Q13 1Q14 KFC Mister Donut Auntie Anne s Pepper lunch Beard Papa s Chabuton Ryu Cold stone The terrace Yoshinoya Ootoya Tenya Average

20 Food performance snapshot (2/2): Total Revenue (Btmn) and # of outlets: 1Q14 s revenue grew 6% yoy, mainly driven by outlet expansion EBITDA (Btmn) and EBITDA margin: EBITDA margin contraction in 1Q14 was mainly related to negative SSS growth 2,163 2,298 +6% -32% 20

21 Revenue Contribution by Brand Revenue Contribution: : Top 4 brands, KFC, MD, AA and Ootoya contribute about 90% of food revenue TEN YO TT RYU CBT PL CSC BP # of outlets KFC Mister Donut Auntie Anne s Ootoya Other Heavy Food Other Light Food 1Q Q Change (+/-) Total 21

22 Outlet Expansion Plan Number of outlets expansion: Targeting additional 75 outlets in FY14. Long term expansion plan is outlets per year for existing brands. 12 Existing Brands: Heavy Food: 55% 49% 56% 56% Light Food: 22

23 Introduce New Brand: Katsuya Quick and delicious deep fried pork cutlet meal at favorable price KATSUYA Quick, fresh and delicious deep fried pork cutlet at favorable price, making Ton-Katsu using an automated fryer that can be served within 5 minutes. Japanese market leader (Ton-Katsu category) and they have 214 outlets in Japan (93 owned+121 franchise) since Signature dish is Katsudon as it is among the most popular Japanese dish for a long time. 23

24 Medium Term Outlook Centara Poste Lafayette, Maurittius 24

25 2014 Target Hotel 1Q14 FY14E OCC 76% 75% - 76% ARR % 6% - 7% RevPar + 6.7% 3% - 4% Food 1Q14 FY14E SSS -1.8% Flat TSS 6.3% 8% - 10% # of Outlets Hotel Business Maldives hotel is the key growth driver. Expecting margin expansion from Maldives hotels and hotel management contracts to partially compensate the reduction in earnings from Bangkok hotels. Food Business Outlet expansion is the key growth driver. Expecting successful marketing campaign to boost up sale. 25

26 Btmn CENTEL s Opportunity Day 1Q14 Portfolio Expansion Asset Light Expansion: Management fees and # of rooms Food Outlet Expansion: BKK VS Upcountry % 50% 59% 59% 55% 50% Note: assumed 8-10 new contracts per annum plus 3-4 hotels for COSI brand since

27 Earning prospects VS. Investment CENTEL s Opportunity Day 1Q14 Revenue by business: 4-year CAGR=12% Investment (Btmn) Net Profit by business: 4-year CAGR =18% Note: - Included COSI in total of Bt254mn and Bt351mn, in 2014E and 2015E,respectively - Included assumption of new hotel construction during in total project cost of Bt6,600mn - EBITDA before gain and expense from Property Fund - CTARAF 27

28 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 28

29 Thank you Centra Ras Fushi Resort and Spa, Maldives 29

30 Appendix 30

31 Hotel OCC, ARR and RevPar by Brand CENTEL s Opportunity Day 1Q14 OCC (%) 1Q13 1Q14 chg Grand 84.5% 71.8% -12.7% Centara 83.6% 84.0% 0.4% Average 84.3% 75.6% -8.7% ARR (Bt) 1Q13 1Q14 %chg Grand 5,911 6, % Centara 3,106 5, % Average 5,128 6, % RevPar(Bt) 1Q13 1Q14 %chg Grand 4,995 4, % Centara 2,597 4, % Average 4,323 4, % Noted: Opening date for 2 nd project in Maldives was 24 Mar