Quarterly Meeting# 4/2018

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Willis Gregory
5 years ago
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Quarterly Meeting# 4/2018 3Q18 & 9M18 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.

3Q18 Executive Summary Industry Continue Growing but at lower pace Tourist arrivals increased by

JW Renovation and the slow down of Chinese Hotel Development on Track 2 new hotels opened; Hop

3 3Q18 Executive Summary Industry Continue Growing but at lower pace Tourist arrivals increased by 3% yoy in 3 rd quarter The slower growth could be attributed largely to the decline in Chinese and Russian tourists. 3Q Low Season JW Marriott Renovation Recorded revenue 1,430 MB and net profit 41 MB Mainly from JW Renovation and the slow down of Chinese and Russian tourists. Hotel Development on Track 2 new hotels opened; Hop Inn Chonburi (Thailand) and Hop Inn Alabang (Philippines) JW Marriott room and F&B outlet renovation were completed ERAWAN. All rights reserved.

5 International Tourist Arrivals Millions 4.0 YTD 28.5 millions, +9% y-y 2015 YTD 22.1 M 2016 YTD 24.8 M 2017 YTD 26.1 M 2018 YTD 28.5 M YoY Jan Feb Mar Apr May June July Aug Sep Oct Oct Nov Nov Dec Dec +11% +19% +16% +9% +6% +12% +3% +3% +4% %YoY Source : Department of Tourism as of Sep ERAWAN. All rights reserved.

7 International Tourist Arrivals by Source Markets Oceania The 2% Americas 4% South Asia 5% Europe 17% Middle East 2% Africa 1% 28.5 Million East Asia 69% Continent 3Q18 YoY 9M18 YoY East Asia 4% 12% Europe 1% 5% South Asia 7% 11% The Americas 2% 3% Oceania 3% 2% Middle East 2% 5% Africa 5% 7% Total 3% 9% 9M18 Contribution Source : Department of Tourism as of Sep ERAWAN. All rights reserved.

8 Thailand Tourist Arrivals 3Q17 Weight 3Q18 Weight YoY 9M17 Weight 9M18 Weight YoY China 31% 27% 9% 28% 29% 13% Malaysia 9% 12% 40% 10% 10% 15% South Korea 5% 5% - 5% 5% 5% Laos 5% 5% 4% 5% 5% 9% Japan 5% 5% 9% 4% 4% 7% India 4% 4% 8% 4% 4% 12% Russia 2% 2% 7% 3% 4% 14% Vietnam 3% 3% 10% 3% 3% 9% United States 2% 2% 3% 3% 3% 6% Hong Kong 3% 3% 28% 2% 3% 25% Other 32% 31% 1% 33% 31% 4% Grand Total 3% 9% Source : Department of Tourism as of Sep ERAWAN. All rights reserved.

Agenda Industry Update Performance Review 3Q18 & 9M18 Outlook &

10 Statistic Summary 3Q18 & 9M18 (ex. HOP INN) No. of Rooms %OCC 84% 83% 85% 81 % 4,501 4,501 4,501 4,514 4,501 4,514 74% 76% 3Q15 3Q16 3Q17 3Q18 9M17 9M18 3Q15 3Q16 3Q17 3Q18 9M17 9M18 Average Room Rate (THB/Room) RevPAR (THB/Room) 5% 5% 4% 1% 2,354 2,323 2,421 2,548 2,520 2,649 1,750 1,954 2,020 1,942 2,136 2,149 3Q15 3Q16 3Q17 3Q18 9M17 9M18 3Q15 3Q16 3Q17 3Q18 9M17 9M ERAWAN. All rights reserved.

11 Statistic Summary 3Q18 & 9M18 by Segment Segment OCC 3Q18 (YoY) ARR +/- RevPAR +/- OCC 9M18 (YoY) ARR +/- RevPAR +/- Thailand Luxury 67% 2% 8% 72% 5% 4% Midscale 86% 3% 2% 87% 6% 4% Economy 74% 12% 1% 82% 7% 3% Total Group 76% 5% 4% 81% 5% 1% HOP INN 73% 12% 9% 76% 8% 10% Philippines HOP INN 73% 14% 8% 75% 9% 4% Remark : calculation in THB ERAWAN. All rights reserved.

12 3Q18 & 9M18 Core Performance Summary Group Operating Income 3Q17 3Q18 9M17 9M18 3Q18 1% YoY 9M18 3% YoY 1,448 1,430 4,413 4,555 EBITDA 3Q18 16% YoY 9M18 in line YoY ,336 1,337 Normalized Net Profit 3Q18 64% YoY 9M18 3% YoY ERAWAN. All rights reserved.

Hotel Revenue by Room & F&B 3% 3% (Unit in MB) 3Q18 1,373 MB 1% YoY 1,393

14 Hotel Revenue Growth by Segment Luxury 4% 10% HOP INN Thailand 51% 3Q17 3Q18 9M17 9M18 44% Midscale 3% 3Q17 3Q18 9M17 9M18 1% HOP INN Philippines 149% 3Q17 3Q18 9M17 9M18 199% Economy 2% 3Q17 3Q18 9M17 9M18 3% 3Q17 3Q18 9M17 9M ERAWAN. All rights reserved.

15 ERW Tourist Arrivals by Key Source Markets Key Source Markets 3Q17 Weight 3Q18 Weight YoY 9M17 Weight 9M18 Weight YoY 1. Thailand 17% 21% 23% 16% 19% 25% 2. China 16% 12% 20% 15% 14% 6% 3. United States 9% 8% 10% 10% 9% 3% 4. Singapore 6% 6% 1% 5% 6% 7% 5. India 4% 5% 16% 5% 5% 12% 6. Hong Kong 5% 5% 2% 4% 4% 3% 7. Russia 2% 1% 42% 3% 4% 15% 8. Australia 3% 3% 1% 3% 3% 8% 9. Germany 3% 2% 7% 3% 3% 5% 10. South Korea 3% 3% 5% 3% 3% 8% Other 32% 32% 1% 32% 30% 1% Total - 4% Source : Department of Tourism as of Sep ERAWAN. All rights reserved.

16 Consolidate Profit & Loss Statement In Baht Millions 3Q17 3Q18 %YoY 9M17 9M18 %YoY Hotel Operating Income 1,393 1,373 1% 4,249 4,385 3% Rental and Service Income % % Total Operating Income 1,448 1,430 1% 4,413 4,555 3% Other Income % % Total Income 1,458 1,442 1% 4,453 4,590 3% Operating Expenses (1,036) (1,089) 5% (3,117) (3,253) 4% EBITDA % 1,336 1,337 0% Depreciation & Amortization (188) (194) (550) (565) Finance Costs (88) (91) (255) (262) Taxes (34) (22) (120) (110) Minority Interest (11) (10) (39) (37) Normalized Net Profit / (Loss) % % Extraordinary Items Share of Profit/(Loss) from ERWPF (22) 5 N.M. (28) (6) 78% Net Profit / (Loss) % % EBITDA Margin 29.0% 24.5% 4.5% 30.0% 29.1% 0.9% ERAWAN. All rights reserved.

17 Summary of Financial Position Total Assets Total Interest Bearing Debt (MB) & Interest-bearing Debt to Equity (x) 10, ,048 16, Q18 Total Liabilities 9,000 8,000 7,000 6, ,645 11,207 5, Q Q18 Total Equities 5,403 5,467 Average Cost of Debt (%) 6.00% 5.00% 4.00% 4.11% Q % Q ERAWAN. All rights reserved.

Agenda Industry Update Performance Review 3Q18 & 9M18 Outlook & Strategy Update Q & A The

19 2018 Outlook Revised 2018 Outlook on RevPAR Growth and Revenue growth due to Slowdown of Chinese Tourists in 2H18 Hotel Revenue Growth Quality Portfolio Operation Excellence RevPAR Growth (ex. HOP INN) 5% - 6% 1% - 2% ERAWAN. All rights reserved.

20 Hotels Growth Strategy HOP INN Thailand #33 Krabi 2 71 Rooms 1Q18 HOP INN Philippines #3 Aseana 196 Rooms HOP INN Thailand #34 Surin 79 Rooms HOP INN Philippines #4 Alabang 168 Rooms HOP INN Thailand #35 Chonburi 79 Rooms 2Q18 3Q18 Novotel Sukhumvit 4 Ibis Style Sukhumvit 4 HOP INN Thailand #36 Chiang Mai 2 HOP INN Philippines #5 Tomas Morato (Quezon City) 185 Rooms 133 Rooms 79 Rooms 167 Rooms 4Q18 Return Enhancing Strategy JW Marriott Room Renovation 2 nd Phase 178 Rooms 2Q18-3Q18 JW Marriott F&B Outlet renovation JW Cafe & BBCO 3Q ERAWAN. All rights reserved.

21 2018 Thailand Hotels Non Bangkok 10 Existing Hotels 35 Existing Hotels 1 New Hotel in 4Q18 Bangkok 8 Existing Hotels 2 New Hotels in 4Q Hotels in Thailand by 2018

22 2018 Philippines Hotels Manila 4 Existing Hotels 1 New Hotels in 4Q Hotels in Philippines by 2018

1,781 Rooms Midscale and Economy Thailand 501 Rooms 23 2018 ERAWAN.

23 Updated Hotel Development Pipeline 1,781 rooms in pipeline 7,921 rooms Existing 564 rooms opened in 4Q18 HOP INN & Midscale Philippines 628 Rooms 1,781 Rooms Midscale and Economy Thailand 501 Rooms ERAWAN. All rights reserved. HOP INN Thailand 652 Rooms Both existing and pipeline > 10,000 rooms

Agenda Industry Updates Performance Review 3Q18 & 9M18 Outlook &

29 3Q18 Hotel Statistic by Segment Hotel Properties Rooms Occupancy ARR (Bt/room/night) RevPAR (Bt/room/night) YoY 3Q17 3Q18 3Q17 3Q18 +/- LY 3Q17 3Q18 +/- LY 3Q17 3Q18 +/- LY Thailand Luxury % 67% -7% 5,578 5,663 +2% 4,131 3,812-8% Midscale 1,282 1,282 90% 86% -4% 2,698 2,773 +3% 2,429 2,389-2% Economy 2,253 2,253 84% 74% -9% 1,054 1, % % Total Group ex.hop INN 4,501 4,514 83% 76% -7% 2,421 2,548 +5% 2,020 1,942-4% HOP INN Thailand 2,186 2,731 75% 73% -2% % % Philippines HOP INN Philippines % 73% -4% % % ERAWAN. All rights reserved.

30 9M18 Hotel Statistic by Segment Hotel Properties Rooms Occupancy ARR (Bt/room/night) RevPAR (Bt/room/night) YoY 9M17 9M18 9M17 9M18 +/- LY 9M17 9M18 +/- LY 9M17 9M18 +/- LY Thailand Luxury % 72% -7% 5,560 5,853 +5% 4,379 4,220-4% Midscale 1,282 1,282 89% 87% -2% 2,719 2,886 +6% 2,430 2,518 +4% Economy 2,253 2,253 85% 82% -3% 1,189 1,274 +7% 1,007 1,039 +3% Total Group ex.hop INN 4,501 4,514 85% 81% -4% 2,520 2,649 +5% 2,136 2,149 +1% HOP INN Thailand 2,186 2,731 74% 76% +2% % % Philippines HOP INN Philippines % 75% -4% % % ERAWAN. All rights reserved.

31 Operating Income by Segment 3Q18 9M18 Contribution Y-Y Contribution Y-Y Luxury 44% 10% 45% 4% Midscale 25% 1% 25% 3% Economy 15% 3% 17% 2% HOP INN Thailand 7% 44% 7% 51% HOP INN Philippines 3% 199% 2% 149% Rental 4% 3% 4% 4% Total Group 1% 3% ERAWAN. All rights reserved.

32 EBITDA by Segment 3Q18 Note : For illustration purpose only EBITDA by Segment is calculated without taking non-property-specific expenses into account. 9M18 Contribution Y-Y Contribution Y-Y Luxury 33% 33% 37% 14% Midscale 32% 1% 30% 5% Economy 13% 17% 18% 3% HOP INN Thailand 11% 76% 9% 69% HOP INN Philippines 4% 950% 2% 558% Rental 7% 2% 6% 6% Total Group 16% ERAWAN. All rights reserved.