Minor International. 3Q09 Investor/ Analyst Presentation. Pratana Mongkolkul, Group CFO Prapharat Tangkawattana, Senior Finance Director

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1 20,000 15,000 10,000 5,000 0 Sales Revenue (Btm) Minor International 3Q09 Investor/ Analyst Presentation The Stock Exchange of Thailand 17 November Month Revenue Breakdown (%) Food 61% Hotel 29% Others 10% Pratana Mongkolkul, Group CFO Prapharat Tangkawattana, Senior Finance Director

2 Today s Agenda I. Recent Developments II. III. IV. Financial Results MINT s Strategic Growth Pipeline Expansion & Financial Outlook

3 I. Recent Developments

4 Key Business Developments in 3Q09 Successful placement of Bt 2,000m debentures in July; 4-year term with coupon rate of 4.65%. It is MINT s first debenture issued to retail investors MINT s total food outlets reached 1,097 with current international coverage in 14 countries Opened purely-managed hotels, Anantara Qasr Al Sarab - Abu Dhabi and Anantara Lawana - Koh Samui, in late October MINT currently operates 30 hotels in 8 countries Completed an extension of 12 pool villas at Four Seasons Hotel in Chiang Mai & opened 2 new spa under management contracts in Turkey and China Signed an agreement with GAP Inc. as the exclusive distributor in Thailand. First stores in Bangkok to be opened in 1Q10 4

5 MINT s Revenue Breakdown by Business 3rd Quarter 2009: Bt 4,152 m 9 Months 2009: Bt 12,184 m Hotel & Spa 24% Food 57% Plaza & Entertain 3% Retail Trading 14% Share of Profit 1% Food 61% Hotel & Spa 29% Plaza & Entertain 3% Retail Trading 6% Share of Profit 1% Strategically, MINT s revenue structure is balanced with 50% from food and 40% from hotel, while the remaining comes from other complimentary businesses 5

6 Food Business in This Quarter Facing challenges from the outbreak of H1N1 flu since July Cautious consumer spending driving marketing strategies; variety and value promotion Strengthening profitability from successful implementation of Supply Chain Management Business SSS growth declined in-line with GDP and Consumer Confidence, however, TSS grew due to shop expansion Strong improvement in Thai franchised outlets due to expansion in underpenetrated markets especially in upcountry Business synergy with local bank to strengthen domestic franchising business 6

7 Improvement of Consumer Confidence We have seen the gradual improvement in consumer sentiment in the past few months which we believe has driven private consumption and manufacturing orders and we expected that this will strengthen our domestic QSR business Pressure from Global Economic Downturn and Intensified Political Tension Jan 08 Mar 08 May 08 Jul 08 Sep 08 Nov 08 Jan 09 Mar 09 May 09 Jul 09 Sep 09 7

8 Thailand s Modern Trade Growth in Late 2009 Expected Growth of Hypermarkets Existing Store New Store Tesco Lotus Big C Carrefour Source: Public News Based on Management Interview Economic slowdown forced a slower growth in hypermarkets in Thailand in the first half of 2009 Pent-up demand expected to accelerate domestic hypermarkets in the latter of the year Industry experts indicated 5% growth on average in This will be one of key drivers for the new openings especially for those under-penetrated markets 8

9 Promising Growth of Delivery Business & Upcountry Franchising Number of Franchised Outlets 3Q08 3Q09 TPC SW TCC Capturing Under-penetrated Market Delivery dockets for local TPC franchised stores grew 5% y-y, especially in underpenetrated markets Local SW franchised outlets reported the docket growth of 21% y-y, thanks to value promotions Newly opened stores of TCC achieved higher sales/ store compared to the existing ones 9

10 Food Business: Key Performance - 3Q09 Brand SSS (%) TSS (%) 3Q09 3Q08 3Q09 3Q08 The Pizza Company Swensen s Sizzler Dairy Queen Burger King The Coffee Club Thai Express Average

11 Food Business: Key Performance -- 9M09 Brand SSS (%) TSS (%) 9M09 9M08 9M09 9M08 The Pizza Company Swensen s Sizzler Dairy Queen Burger King The Coffee Club Thai Express Average

12 Key Issues in Hospitality Business Despite H1N1 challenge at the beginning of 3Q, hotel business poor sentiment has shown the occupancy rate bottom-out in June Overall room rate remained an issue giving a modest rebound of tourist arrivals compared to strong growth last year International tourist arrivals to Thailand posted a significant y-y decline, however, a strong improvement is seen in the South beach provinces and oversea markets. September was the first month to report number of tourist arrivals climbing back at the same level of normal years. Continuous introduction of premium properties; Anantara Kihavah, Maldives and St. Regis Hotel & Residence, Bangkok 12

13 Thai Tourism Sentiments in Past 18 Months Foreign Tourists & Thai hotels Occupancy Number of Tourist Occupancy (%) (Million Persons) Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 Source: BOT 13 The industry was severely hit in late 2008 by political unrest and further in 2009 due to the slowdown of the global economy and the H1N1 virus outbreak The government has launched several tourism recovery programs including massive budget and policy measures in order to restore business and consumer confidence

14 Regional Occupancy Rate Market (YTD Jul 2009) Occupancy % Change in Occupancy % Change in ADR % Change in RevPar Hong Kong - 5 Star (HKD) 56% (24%) (16%) (36%) Hong Kong - 4 Star (HKD) 74% (10%) (20%) (28%) Bangkok - 5 Star (THB) 47% (32%) (11%) (40%) Bangkok - 4 Star (THB) 51% (29%) (12%) (37%) Singapore - 5 Star (SGD) 65% (12%) (21%) (30%) Singapore - 4 Star (SGD) 72% (12%) (23%) (32%) Manila - City (PHP) 68% (10%) (2%) (12%) Phuket - City (THB) 59% (16%) (13%) (27%) Maldives - City (USD) 60% (21%) 8% (15%) Bali - City (USD) 70% (9%) 3% (6%) Jakarta - City (USD) 61% (11%) (7%) (17%) Hanoi - City (USD) 54% (16%) (17%) (31%) Ho Chi Minh - City (USD) 53% (27%) (10%) (35%) Source: The Brief (Oct 2009)STR Global 2009, Jones Lang LaSalle Hotels 14

15 Feeder Markets to Thailand vs. MINT s Thailand MINT Hotels - 9M09 Oceania 5% South Asia 6% Others 3% EU 28% Others 7% Oceania 4% Thailand 12% EU 38% South East Asia 28% The Americas 6% South East Asia 6% East Asia 22% East Asia 21% The Americas 12% Change in % Share of Total Tourist Arrivals (y-y) Europe 2% East Asia (5%) The Americas - South East Asia 2% South Asia 1% Oceania and Others - Source: 9M09 Office of Tourism Development, MINT 15

16 MINT s Hotel Occupancy Hit Bottom in Jun 09 (Million) 2.0 First 8 months 2008 were outstanding period for MINT s hotel business % 85% 81% 66% 66% 60% 72% 75% 49% 61% 60% Airport Closure 43% 60% 67% 56% April Riot 50% H1N1 Outbreak 43% 39% 48% 56% 48% 63% Jan-08 Feb-08 Mar-08 Apr-08 May-08 Jun-08 Jul-08 Aug-08 Sep-08 Oct-08 Nov-08 No. of Foreign Visitors (Pending info of Oct-09) Dec-08 Jan-09 Feb-09 Mar-09 Apr-09 May-09 Jun-09 Jul-09 Aug-09 MINT s Thai Hotels Average Occupancy (%) Sep-09 Oct-09 16

17 MINT s RevPar from Past to Present In our opinion, the excess supply was not a major concern compared to demand situation MINT s hotel RevPar is about to show a decline for the first time in 5 year mainly caused by global economic turmoil Financial Crisis 1,806 1,740 1, SARS 2,175 2,158 2,151 Tsunami, Bird Flu 2,555 London Bomb 3,023 BKK Bomb, Coup 3,339 5-Yr CAGR 14% Sub-prime Crisis 3,951 Airport Closure 4,156 Global Economic crisis Political Turmoil H1N1 Outbreak c. 3,200 1,401 (Baht/Night) F 17

18 Hotel Supply Situation 15,000 Upscale Hotel Rooms in Bangkok 7,000 Upscale Hotel Rooms in Phuket 10,000 5,250 5,000 3,500 1, E 2010F 2011F E 2010F 2011F Upscale Hotel Rooms in Maldives 24,000 18,000 12,000 6, E 2010F 2011F Source: HVS Asia Pacific Hotel Watch 2009, MINT 18 2,000 1,500 1, Upscale Hotel Rooms in Samui E 2010F 2011F Existing Supply Additional Supply

19 Hotel Business: Key Performance - 3Q09 Hotel Occupancy (%) ADR (Bt/night) RevPar (Bt/night) 3Q09 3Q08 3Q09 %Chg 3Q09 %Chg Four Seasons 45% 54% 7,157-22% 3,215-35% Anantara 47% 64% 6,247-9% 2,915-34% Marriott 60% 71% 2,948-21% 1,761-34% Others 28% 37% 7,139 15% 1,985-14% Average-Thai 51% 66% 3,906-19% 1, Average 51% 64% 4,765-13% 2,429-31% 19

20 Hotel Business: Key Performance - 9M09 Hotel Occupancy (%) ADR (Bt/night) RevPar (Bt/night) 9M09 9M08 9M09 %Chg 9M09 %Chg Four Seasons 43% 58% 8,399-11% 3,583-35% Anantara 44% 67% 7,715 1% 3,372-34% Marriott 61% 78% 3,778-14% 2,300-32% Others 30% 46% 8,725 15% 2,623-24% Average-Thai 51% 70% 4,768-12% 2,425-37% Average 50% 69% 5,783-5% 2,907-31% 20

21 Performance Comparison of Core Business MINT s EBITDA margins demonstrated the pro-active response to changing environments. Hotel & Spa profitability relatively held up despite significant drop in sales revenue in 9M09 Food: EBITDA vs Revenue Growth Revenue Growth Hotel: EBITDA vs Revenue Growth Revenue Growth 20% 29% 40% 22% 15% 10% 25% 16% 30% 20% 10% 1% 5% 6% 10% -27% 0% M % M09

22 II. 3Q09 Financial Results

23 Key Issues on MINT s Core Business Financials Food: Sustained sales growth and high profitability driven by operating efficiency & resilient demand Hotel & Spa: Room rate pressures, offset by an increased occupancy rate Residential Properties: Absence of new residential sales and revenues recognition Corporate: Earnings diversification and strategic fundings for future growth & new opportunities 23

24 Third Quarter Performance (Bt Million) 3Q09 % 3Q08 % % y-y Chg Food 2,373 57% 2,268 55% 5% Hotel & Spa 1,013 24% 1,389 34% -27% Mixed-Use 5 0% 322 8% -99% Plaza & Entertainment 116 3% 139 3% -17% Retail Trading % - 0% n.a. Share of Profit 45 1% -4 0% n.a. Total Revenue 4, % 4, % 1% Operating Expenses 1,516 37% 1,414 34% 7% SG&A Expenses 1,917 46% 1,741 42% 10% EBITDA % % -25% Net Profit 152 4% 376 9% -60% Net Profit Before Extra-item 175 4% 376 9% -53% EPS (Bt) Before Extra-item n.a n.a. -48% 24

25 Third Quarter: Breakdown Performance (Bt Million) 3Q09 % Food 2,373 57% Hotel & Spa 1,013 24% Mixed-Use 5 0% Plaza & Entertainment 116 3% Retail Trading % Share of Profit % Total Revenue 4, % Operating Expenses 1,516 37% SG&A Expenses 1,917 46% EBITDA % Depreciation & Amortization % EBIT 321 8% Interest Expenses 115 3% Tax 44 1% Minority 11 0% Net Profit 152 4% 25 EBITDA Contribution Food 47% Hotel & Spa 32% Plaza & Entertain 10% Retail Trading 5% Share of Profit 6% Net Profit Contribution (Btm) 3Q09 % Food % Hotel & Spa & Mixed-Use % Plaza & Entertainment 44 29% Retail Trading 10 7% Consolidated Net Profit %

26 First Nine Months of 2009 Performance (Bt Million) 9M09 % 9M08 % % y-y Chg Food 7,429 61% 6,388 52% 16% Hotel & Spa 3,509 29% 4,803 39% -27% Mixed-Use 20 0% 610 5% -97% Plaza & Entertainment 402 3% 450 4% -11% Retail Trading 716 6% - 0% n.a. Share of Profit 109 1% % 46% Total Revenue 12, % 12, % -1% Operating Expenses 4,074 33% 4,070 33% 0% SG&A Expenses 5,556 46% 5,027 41% 11% EBITDA 2,554 21% 3,229 26% -21% Net Profit 782 6% 1,477 12% -47% Net Profit Before Extra-item 805 7% 1,477 12% -46% EPS (Bt) Before Extra-item n.a n.a. -44% 26

27 First Nine Months of 2009: Breakdown Performance (Bt Million) 9M09 % Food 7,429 61% Hotel & Spa 3,509 29% Mixed-Use 20 0% Plaza & Entertainment 402 3% Retail Trading 716 6% Share of Profit 109 1% Total Revenue 12, % Operating Expenses 4,074 33% SG&A Expenses 5,556 46% EBITDA 2,554 21% Depreciation & Amortization 1,163 10% Net Profit 782 6% 27 EBITDA Contribution Hotel & Spa 40% Food 43% Plaza & Entertainment 10% Retail Trading Share 2% of Profit 4% Net Profit Contribution (Bt m) 9M09 % Food % Hotel & Spa & Mixed-Use % Plaza & Entertainment % Retail Trading 27 4% Consolidated Net Profit %

28 III. MINT s Strategic Growth 28

29 MINT s Asset-Light: Then and Now Asset-Heavy..THEN NOW..Expansion with Asset-Light 353 Food Outlets 9 Hotels Prior to 2003, MINT s business portfolio was 100% assets Continuing the Transformation 1,097 Food Outlets 30 Hotels MINT initiated its food franchise business of The Pizza Company brand and the hotel management employing Anantara brand. Total revenues grew by 29% CAGR since

30 The Future of MINT s Intellectual Properties (No of Outlets) Investment Franchised (No of Rooms) YTD E Investment Purely Managed 2, ,055 2,279 2, YTD , E

31 Contributions from The Asset-Light Business Food Franchise Fee Income (Btm) 21% CAGR Management Fee Income (Btm) 91% CAGR Strong and steady growth of feebased income from both hotel & food businesses Food franchising business can expand at a faster rate, given short lead times The growth rate of hotel management fee is attractive, it takes approximately 3 years for a management contract to take effect Timeshare development and other one-off fees 31

32 Food QSR Business

33 Food Key Strategic Directions Solid Organic Growth Continued expansion of strong concepts in Thailand Aggressive franchising in strong retail consumption growth markets such as SE Asia & Middle East Potential Markets Enhancing growth through the franchising platform esp. in high potential markets in China & India Strategic Acquisition Continued acquisition of successful food concepts??? 33

34 Food Outlets Expansion Plan Number of Outlets, by Brands Sep E 1,500 1, Number of Outlets, by Ownership Franchise Equity AGR C % 12 6% C AGR Franchise Equity Number of Outlets, by Location 1, , Overseas Thailand 2009 C 16% AGR AGR C % 4 Overseas Thailand 2012

35 MINT s Food Asset-Light Portfolio Outlook Q Own 100% Own 61% Franchised 39% Own 54% Franchised 46% Note: Based on number of outlets from internal budgets under pipeline expansion, MINT 35

36 Food Business 5-Year Pipeline Growth Aiming to be a global integrated operator of multiple food brands Under the pipeline plan, MINT s food total-system-sales target to grow 16.6% p.a. for the next five years The strategy is to increase franchising penetration in both existing and especially in emerging markets (Bt bn) Minor Food Total-System-Sales Overseas Revenues Contribution 26% 17% CAGR % With further catalyst from strategic acquisition of new food concepts 36 9M

37 MINT s Hospitality Business

38 Hotel Key Strategic Directions Leader in Thailand 4 Four Seasons Hotels 4 Marriott & JW Marriott Hotels 7 Anantara Hotels Strengthening Brand Recognition New Opportunities Amidst Crisis 12 existing Anantara hotels in Thailand, Maldives, Bali and Abu Dhabi Additional 11 Aanantara hotels under the pipeline; 1 owned and 10 purely-managed Stronger balance sheet Lower cost of borrowing Excess capital from food/ mixed-use projects 38

39 The Pipeline Expansion Investment Hotel: 1. Anantara Kihavah, Maldives (82 rooms) 2Q10 2. ST. Regis Hotel & Residences (220 rooms/53 condo units for sale) 4Q10 Extension: Anantara Koh Samui (20 rooms) 2011 Enjoy life at a slower rhythm on unspoilt Maldivian shores Journey into the spirit of Arabia Anantara Qasr Al Sarab, Abu Dhabi Anantara Baa Atoll, Maldives Hotel Management: 1. Anantara Lawana Resort & Spa, Samui (122 rooms & villas) November 2009* 2. Anantara Al Madina A Zarqua, Oman (122 rooms) 2Q10 3. Anantara Sanya, China (148 rooms) Anantara Marrakech, Morocco (109 rooms) Anantara Magador, Morocco (75 rooms) Anantara Mahabaliburam, India (126 rooms) Anantara Uluwatu, Bali (93 rooms) Anantara Jumeirah Lake, Dubai (473 rooms) Anantara Estrella, Cape Verde (200 rooms) Anantara Santiago, Cape Verde (200 rooms) Aequalis Santiago, Cape Verde (60 rooms)

40 MINT s Hospitality Asset-Light Portfolio Q Own 100% Own 67% JV 22% Managed 11% Own 46% JV 13% Managed 40% Note: Based on number of hotel rooms from internal budgets under pipeline expansion, MINT 40

41 MINT Hospitality 5-Year Intact Growth Aiming to be a regional leader in Hospitality & leisure During , at least 10 additional hotels will be managed by Anantara Drive growth in Anantara brand Continued expansion into other hospitality-related businesses (Bt bn) MINT s Hospitality & Leisure Revenues % CAGR Overseas Revenues Contribution Acquisitions of properties and new hotel brands accelerate growth of profits faster than top-line revenues 8% 9M09 15%

42 MINT s Owned Hotels Progress Anantara Kihavah, Maldives Project: 82 villas Completion: 2Q 2010 Four Seasons Chiang Mai, Extension Project: Hotel 12 pool villas Completion: 3Q St. Regis Hotel & Residence, Bangkok Project: 220 rooms, 53 Residence Completion: 4Q 2010

43 IV. Pipeline Expansion & Financial Outlook

44 Management s Guidance for We anticipated a near-term improvement with a tourism fully recovered by year-end 2010 Food Hotel Residential MINT- Consolidated 2009E (2-3%) SSS; 12-15% TSS 50-55% Occupancy; (5-10%) ADR 2-5 units of St. Regis Modest revenue growth; 20-25% decline in operating profits 2010F +3-5% SSS; 15% TSS 65% Occupancy; +5% ADR 8-12 units sales of St. Regis; 1-2 villas of The Estate Samui Significant improvement on top & bottom-line from low base comparison 44

45 How We Grow Business in the Next 5-Year? Annualized Topline Contributions 50% 40% 10% Food Business 1,600 outlets Hospitality 40 hotels Retail & Trading Revenues > $700m Achieve 50:50 mix of equity: franchise outlets Organic revenues > $500m With strategic acquisition, total revenues should grow 31% per annum Revenues > $130m Exclusive agreement with Gap Inc. Note: Based on the internal budgets, MINT 45

46 With Well-Diversified Sources of Income Food and hotel remain balanced key businesses offering reciprocal advantages Sales Revenues Net Profit Hotel & Mixed Use 40% Food 45% Others 15% Hotel & Mixed Use 65% Food 30% Others 5% Note: Contributions estimated from internal budgets under pipeline expansion, MINT 46

47 With Higher Contributions from Overseas Gradually shifting away from single-country orientation 40,000 Sales Revenues Net Profit ( ) 30,000 20,000 10,000 19% Thailand 24% Overseas Note: Total Sales revenues & net profit calculated from internal budget, MINT 47 Thailand 64% Overseas 36%

48 Thank You For further information, please visit Investor Relations Office: Ririnda Tangtatswas + 66(0) Punnee Ruangwaewmanee + 66 (0)