Quarterly Meeting # 2/2014

Transcription

1 Quarterly Meeting # 2/2014 Performance & Outlook 15 May 2014

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.

3 Quarter Highlights Political Situation Adversely Impacted Performance > Tourist arrivals in ( 6% Y-Y) mainly from Suvarnabhumi airport ( 15% Y-Y). However, tourist arrival for other destinations are still growing ( 12% Y-Y). > Operating Income decreased 23% and EBITDA decreased 39% over the same period. > Bangkok Hotels show sign of recovery after the state of emergency was lifted at the end of Mar-14 New Hotels Developed and Will Be Opened as Planned > First two HOP INN hotels opened in April 2014 and 8 HOP INN under construction with target opening in 2Q - 4Q14. > Holiday Inn Pattaya, an Extension wing will be opened in 3Q14 > Mercure Pattaya will be opened in 4Q14 > ibis Krabi will be opened in 4Q ERAWAN. All rights reserved.

4 Agenda 1 Industry Update 2 Performance Review 3 Outlook 4 Strategy Update 5 Q & A ERAWAN. All rights reserved.

5 International Tourist Arrivals All Ports Millions 3.0 YTD 6.60 millions, -6% y-y 0% -8% -9% 2012 YTD 5.74 M 2013 YTD 7.01 M 2014 YTD 6.60 M YoY % 2.5 0% -10% % % % -50% % 0.0 Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec -70% Source : Department of Tourism as of Mar ERAWAN. All rights reserved.

6 International Tourist Arrivals (Unit in millions arrivals) 6% Q08 1Q09 1Q10 1Q11 1Q12 1Q13 Source : Department of Tourism as of Mar ERAWAN. All rights reserved.

7 Tourist Arrivals by Source Markets 1Q13 Weight Weight Y-Y 3Y/CAGR East Asia 55% 51% 13% 9% China 17% 15% 18% 27% Europe 30% 34% 7% 8% Russia 8% 11% 19% 21% The Americas 5% 5% 0% 7% South Asia 4% 4% 14% 0% India 4% 3% 17% 0% Oceania 3% 4% 5% 4% Middle East 2% 2% 12% 6% Africa 1% 1% 10% 7% Grand Total 100% 100% 6% 8% Source : Department of Tourism as of Mar ERAWAN. All rights reserved.

8 ERAWAN. All rights reserved.

9 Agenda 1 Industry Update 2 Performance Review 3 Strategy Update 4 Outlook 5 Q & A ERAWAN. All rights reserved.

10 Performance Summary Group OCC 20% Group RevPAR 22% Group Operating Income 23% Revenue by Business Hotel Business 24% Rental Properties 2% Group EBITDA 39% Net Profit 98% ERAWAN. All rights reserved.

11 Room Revenue by Segment and Destination 22% in (Y-Y) By Segment Contribution RevPAR (Y-Y) By Destination Contribution RevPAR (Y-Y) Luxury BKK 27% 45% Bangkok 45% 41% Luxury Resort 15% 13% Pattaya 20% 4% Midscale 22% 22% Phuket 21% 11% Economy 36% 4% Samui 11% 8% Huahin 3% 12% ERAWAN. All rights reserved.

12 Room Revenue by Country of Residence Country of Residence 1Q13 Contribution Contribution Y-Y United States 12% 13% 16% Thailand 9% 10% 16% RIC - Russia 9% 12% 1% - India 4% 4% 26% - China 9% 8% 28% East Asia (ex China) 23% 16% 47% Europe (ex Russia) 19% 22% 8% Middle East 6% 6% 18% Oceania 5% 5% 19% Room Revenue 22% ERAWAN. All rights reserved.

13 F&B Portfolio Banquet Space 2,442 sqm. 1,302 sqm. 120 sqm. 525 sqm. 249 sqm. 838 sqm. 146 sqm. 762 sqm. Food Outlets Dining Room Spasso Tables You & Mee Erawan Bakery Erawan Tea Room Breezeway Bar 494 Marriott café New York Steakhouse Tsu Nami Man-Ho BB-Co Lobby lounge bar Sake Bar Manhattan Bar Banana Leaf Tapas Pool Bars TawaNN Tonsai My Grill Z-Bar Pool Bar MoMo Café MoMo Bar Café G Flow Terrazzo Havana Bar Splash The Eight Pool Bar Lobby Bar Taste Lobby Bar ERAWAN. All rights reserved.

14 F&B Revenue by Segment 26% in (Y-Y) Contribution Growth Y-Y Luxury BKK 65% 33% Luxury Resort 9% 11% Midscale 13% 19% Economy 13% 10% ERAWAN. All rights reserved.

15 Operating Income by Segment and Destination 23% in (Y-Y) Segment Contribution Y-Y Destination Contribution Y-Y Luxury BKK 39% 39% Bangkok 58% 35% Luxury Resort 12% 11% Pattaya 15% 5% Midscale 18% 22% Phuket 16% 9% Economy 26% 5% Samui 8% 8% Rental 5% 2% Huahin 3% 12% ERAWAN. All rights reserved.

16 EBITDA by Segment and Destination 39% in (Y-Y) Segment Contribution Y-Y Destination Contribution Y-Y Luxury BKK 24% 68% Bangkok 41% 61% Luxury Resort 10% 28% Pattaya 23% 3% Midscale 18% 36% Phuket 23% 16% Economy 40% 4% Samui 11% 20% Rental 8% 3% Huahin 2% 30% Note : For illustration purpose only EBITDA by Segment is calculated without taking non-property-specific expenses into account ERAWAN. All rights reserved.

17 Consolidated Profit & Loss Statement In Baht Millions 1Q13 %Y-Y Hotel Income 1, % Rental and Service Income % Total Operating Income 1,300 1,001 23% Other Income % Total Income 1,305 1,010 23% Operating Expenses (861) (738) 14% EBITDA % Share of Profit in ERWPF 5 ERWPF Rental Payment (28) Depreciation (164) (159) Interest Expenses (98) (86) Taxes (16) (11) Minority Interest (17) 10 Net Profit/(Loss) % EBITDA Margin (%) 34% 27% ERAWAN. All rights reserved.

18 Summary of Financial Position Baht Million Total Assets Total Liabilities & Equity 16,000 ST Loan 12,000 LT Loan 8,000 Other Liabilities 4,000 Equity 0 1Q13 1Q13 Note : Fix rate loan represents 26% while 74% is float rate loan ERAWAN. All rights reserved.

19 TOTAL INEREST-BEARING DEBT (MB) Healthy Debt to Equity Ratio 9,000 8,000 7,000 6,000 5, ,000 Dec-09 Dec-10 Dec-11 Dec-12 Dec Interest-bearing Debt to Equity ERAWAN. All rights reserved.

20 Agenda 1 Industry Update 2 Performance Review 3 Outlook 4 Strategy Update 5 Q & A ERAWAN. All rights reserved.

21 Thailand will Remain Top Destination Nature, Culture and Historical Architecture Best Value for Money Thai Hospitality Unique and Diverse Food Offerings Travel Hub at the Heart of SE ASIA ERAWAN. All rights reserved. Broad Variety of Attractions to Suit All Traveler Types Well Established Tourism Infrastructure and Facility

22 Continue Growth in Tourist Arrivals Proven Resilience to Challenges 5% Source : Department of Tourism as of Mar-14 Millions F 9/11 SARs TSUNAMI Coup Protest Protest Protest Flood Protest Protest ERAWAN. All rights reserved.

23 Agenda 1 Industry Update 2 Performance Review 3 Outlook 4 Strategy Update 5 Q & A ERAWAN. All rights reserved.

24 Well Diversified Hotel Portfolio Well Diversified Portfolio across key Segments from Luxury to Budget across Thailand Currently 18 hotels in operations with additional 10 hotels under development in key tourist destinations and major cities Existing Hotels HOPINN Hotels ERAWAN. All rights reserved.

25 Developing Hotels ( ) Increase to 28 hotels with total room inventory of 5,289 rooms Holiday Inn (Extension) Mercure Pattaya Ibis Krabi HOP INN # Rooms Investment (Excl Land) Target Opening 1,145 MB 660 MB 400 MB 400 MB 3Q14 4Q14 4Q ERAWAN. All rights reserved.

26 10 Hotels to Open in hotels (Nongkai and Mukdahan) opened in April 2014 Lampang Nongkai Tak Udonthani Khonkaen Mukdahan Kanchanaburi Korat Ubonratchathani Sakaeo ERAWAN. All rights reserved.

27 ERAWAN. All rights reserved. 25 Hotels in 2015

28 Agenda 1 Industry Update 2 Performance Review 3 Strategy Update 4 Outlook 5 Q&A ERAWAN. All rights reserved.