Opportunity Day Presentation 3Q13 Central Plaza Hotel Public Company Limited

Transcription

1 Opportunity Day Presentation 3Q13 Central Plaza Hotel Public Company Limited November 25, 2013

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 3Q13 Financial Summary o Performance by Business o Hotel Business o QSR Business o Medium Term Outlook 3

4 3Q13 Financial Summary Centara Grand & Bangkok Convention Centre at Central World 4

5 3Q 12 3Q 13 9M12 9M13 Consolidated Earnings in 3Q13: Significant performance improvement and 1 st time reporting net profit for hotel business in low season. Financial Highlights Total revenue in 3Q13 grew by 18% yoy. Hotel revenue increased by 31%, primarily driven by revenue from 2 properties in Maldives. Food revenue grew by 9%, mainly driven by outlet expansion. Net profit grew significantly from Bt12mn to Bt194mn as result of strong hotel business performance and ability to maintain profitability level of food business. THB million 3Q12 (Restated) 3Q13 % chg 9M12 (Restated) 9M13 Hotel revenue 1, , % 4, , % Food Revenue 2, , % 6, , % % chg Total Revenues 3, , % 10, , % Total Cost & Expense (Excl. depreciation allocated to cost) (2,917.4) (3,249.7) 11.4% (8,512.4) (9,982.9) 17.3% Equity Gain (Loss) 2.7 (5.6) (295.3%) (21.0%) Total EBITDA % 2, , % EBITDA margin (%) 16.0% 20.5% 21.1% 22.5% Net Profit (Loss) before extra items % , % Total revenue by business 100% 80% 60% 40% 20% 0% 100% 80% 60% 40% 20% 0% 48% 52% Food 59% 54% 57% 53% 41% 46% 43% 47% 3Q12 3Q13 9M12 9M13 EBITDA by business 33% 38% 33% 67% 62% 67% 3Q12 3Q13 9M12 9M13 Net profit by business Hotel Loss on re-measuring fair value of investments (17.5) (12.4) 29.0% Gain from business combination - CKR % Net Profit % , % EPS (Baht per share) % 50% 0% -50% 61% 42% 44% 895% 39% 58% 56% -795% 3Q12 3Q13 9M12 9M13 5

6 Summary of financial position as at 30 September 2013 o o o Total asset slightly decreased by Bt193mn (or -0.7%) to Bt27,782mn between periods mainly due to a decrease in long-term loans to related parties of Bt116mn. Total liabilities declined by Bt596mn (or-3.3%) to Bt17,624mn primarily due to a decrease in debenture by Bt400mn. Shareholders equity rose by 4% to Bt10,158mn, mainly contributed from period profits. Total Assets (THB mil.) Liabilities & Shareholders Equity (THB mil.) 27,975 27, % 27,782 27, % 9,755 10, % 25,986 25, % 18,220 17, % 1,989 2, % 31-Dec Sep Dec Sep-13 Current assets Non-current assets Total liabilities Shareholders'Equity 6

7 Debt Structure as at 30 September 2013: Total Interest Bearing Debt of 11,499MB with average cost of debt of 4.29% Interest Bearing Debt (THB million) 267 2,799 5,082 2,061 1, Bank overdraft Short-term loan Current portion of Long-term loans Current portion of PPF2 Long-term loans Debenture Q13 Interest bearing Debt/ Equity 1.2x 1.1x S-T LOANS (31.5%) = 3,618MB FIXED-RATE LOAN (15.7%) = 1,800 MB L-T LOANS (68.5%) = 7,881 MB FLOAT-RATE LOAN (84.3%) = 9,699 MB 7 Note: Excluding interest bearing debt of a joint venture, Centara Kata, Phuket

8 Hotel Business Centara Grand Beach Resort & Villas, Hua Hin 8

9 Pipeline: Target opening schedule By Our Hotel Portfolios (as at November 13, 2013) There are 62 hotels (12,483 rooms) including 42 hotels (7,890 rooms) in operation by end of 2013 and 20 hotels (4,593 rooms) under development with opening schedule between Ownership By Brands Brands Thailand Bali China Maldives Mauritius Sri Lanka Vietnam Ethiopia Total Centara Grand 4,259* ,174 Centara 3, ,698 Centra ,043 Centara Boutique Collection Centara Residence & Suite Cosi Total 9, ,483 Owned 3, ,812 Managed 5, ,671 Total 9, , Hotels in pipeline FY ,523 FY ,660 FY16 1,110* 1,110 FY Total 2, ,593 Owned and JV Managed Total 2,649 2,525 5,174 1,163 4,535 5,698-1,043 1, ,812 8,671 12,483 Our hotel portfolios comprise a total of 62 hotels with 12,483 rooms in 8 countries. This includes 42 hotels (7,890 rooms) in operation by end of 2013 and 20 hotels (4,593 rooms) under development with targeted opening date between 2014-and 2017 * Included 2 nd phase of Centara Grand West Sand of 556 keys 9

10 42 hotels in operation by the end of 2013, of which, 8 hotels are newly opened in this year. 34 hotels in Thailand with total 6,997 rooms Brands Bangkok Phuket Pattaya Krabi Hua Hin Samui Centara Grand Chiang mai Others* Total 1, ,242 4,475 Centara ,748 Centra Centara Boutique hotels in Thailand & Overseas Owned &JVs Managed Total 2,649 2,038 4,687 1,163 1,068 2, Centara Residence Total 1,712 1,292 1, ,242 6,997 8 hotels in overseas with total 973rooms Brands Maldives Vietnam Mauritius Srilanka Bali Total Centara Grand Centara Centra Centara Boutique Collection Centara Residence & Suite Total ,812 4,158 7,890 At the end of 2013, Centara will have 42 hotels in operation across 6 countries with total of 7,890 rooms, including 15 owned & JV properties and 27 hotels under management contracts. Note: *Others included Udon Thani, Khonkaen, Rayong, Trat, Mae Sot and Hat Yai

11 New Hotel in 4Q13: 15 October 2013 Centara Grand Phratamnak Pattaya Category 5 Stars Number of Rooms 165 Location Products Located in Phratamnak Hill, South Pattaya's residential area Set directly on the beach is our own Beach Club, the perfect place to laze the day away. On the second and third floors of the Beach Club, overlooking the sea, is SPA Cenvaree. The rooftop pool provides a calm oasis where one can enjoy a leisurely swim 11

12 New Hotel in 4Q13: 1 December 2013 Centara Grand Modus Resort Pattaya Category 5 Stars Number of Rooms 215 Location Products Set on the sands of quiet Wong Amat Beach, in northern Pattaya, and is adjacent to one of the ocean city s most famous tourist sites, the Sanctuary of Truth. A leisurely swim while youngsters splash out in the children s pool or enjoy activities galore at our professionally supervised Kids Club, with its Camp Safari catering to the needs of younger guests of up to nine years old, and E-Zone, an entertainment area for teenagers. 12

13 New Hotel in 4Q13: 15 December 2013 Centara Grand Azuri Resort & Spa Mauritius Category 5 Stars Number of Rooms 100 Location Located in Haute Rive in the northeast of Mauritius, 25 kilometres from the capital city of Port Louis Products Offers a natural, rustic yet luxurious environment on the sands of a beautiful beach and a stunning lagoon that is ideal for water sport activities. Couples, families and groups will find a new and magical experience here on this fascinating and lovely island. 13

14 50.00% 40.00% 30.00% 20.00% 10.00% 0.00% % % % % % 7,000 6,500 6,000 5,500 5,000 4,500 4,000 3,500 3,000 2,500 2,000 1,500 1, % 30.00% 20.00% 10.00% 0.00% % % % % % Hotel Financial Snapshot 3Q13: Significant improvement in revenue and EBITDA margin o In 3Q13, total revenue grew by Bt443mn (or 31.2% from 3Q12) to Bt1,865mn, primarily contributed by additional revenue from 2 properties in Maldives (Bt332mn). Total Hotel Revenue (THB Mil.) & EBITDA margin 3,000 2,500 2,000 1,500 1, Room F&B Other Income EBITDA margin (%) 43.0% 24.1% 20.3% 29.5% 42.0% 21.3% 30.0% 1,828 1,398 1,422 1,829 2,351 1,806 1,865 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q % 32.1% 4,647 6,021 9M12 9M13 Phuket 16% Mae Sot 0.5% Samui 10% 3Q12 Revenue Contribution by location Bangkok 41% Mae Sot 0.4% Samui 8% Maldives 18% 3Q13 Bangkok 34% 20% 32% Total Hotel Revenue Growth yoy. 57% 24% 23% 29% 29% 31% 30% Pattaya 16% Krabi 5% Hua Hin 8% Hat Yai 3% Phuket 13% Pattaya 14% Hua Hin Krabi 7% 4% Hat Yai 2% 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 9M12 9M13 Note: Revenue from operation of owned hotels only, excluded other income and revenue from a JV Note: Total revenue excluded amortization of deferred rental income from property fund and non recurring items 14

15 Hotel s KPI by Brands 3Q13: Occupancy is all times high in low season. Occupancy by Category 3Q13 3Q12 chg 9M13 9M12 chg Centara Grand 81.7% 67.7% 14.0% 81.1% 69.8% 11.3% Centara 76.4% 57.6% 18.8% 77.1% 64.4% 12.7% Occupancy 3Q13: Occupancy rose from 65% to 80% with improvement in all major properties. Average Occ 80.1% 64.8% 15.3% 79.9% 68.2% 11.7% Average Room Rate by Category Centara Grand 4,032 3, % 4,725 4, % Centara 3,033 1, % 2,995 2, % Average ARR 3,740 3, % 4,229 3, % Average Room Rate 3Q13: ARR increased by 15% yoy driven from properties in Maldives. In Thailand, Centara Central World, Centara Grand Mirage Pattaya, and Centara Grand Ladprao, reported room rate growth at 4%, 2% and 2% yoy, respectively. RevPar by Category Centara Grand 3,294 2, % 3,833 2, % Centara 2,317 1, % 2,309 1, % Average RevPar 2,995 2, % 3,380 2, % Revenue Per Available Room 3Q13: RevPar improved by 42% yoy. If Maldives hotels were to be excluded, RevPar growth is around 12% yoy. Note: figures represented; 2012 Owned and JVs in Thailand only 2013 Owned and JVs in Thailand and Maldives 15

16 000 Persons Thailand tourism continues its growth momentum o For 9M13, Asian tourist arrivals rose by 35% yoy. Chinese tourists reported the strongest growth at 93% yoy and represented about 19% of total arrivals. Malaysian tourists was the 2 nd largest contributor at 11% of total arrivals. o European grew 13% yoy. Russian was the fastest growing tourists at 37% yoy and accounting for around 6% of total arrivals. International Arrivals: 9M13 Number of International Arrivals South Asia, 5% Oceania, 4% Middle East, 2% Africa, 1% 5,741 4,878 5,354 6,380 6,829 5,916 6,928 Americas, 4% 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 16 Source: TAT Europe, 22% East Asia, 61% Nationality 3Q12 (millions) 3Q13 (millions) % yoy East Asia % Europe % The Americas % South Asia % Oceania % Middle East % Africa % Total % Source: TAT

17 Centara s Feeder Market & Market Outlook Bangkok Market Overview 4Q13 The peak period for corporate and MICE movements should allow us to catch up within these segments. We will exceed same period last year Phuket Demand for coming high season remains strong and ahead of same time last year. Russian requests driving much of extra business. Samui 4Q13 is low season but again we see already yoy growth on our books. This is expected to remain supported by slowly growing air capacity to the island Pattaya High season demand fueled by Russia and Asian markets remains strong for coming high season Maldives Small question mark on current political tensions which hopefully will subside in the coming days allowing for a pickup in high season bookings. Demand is still there but may be slightly delaying the booking process at this time. Guest Mixes by Number of Room Night 3Q13 & 9M13 18% 15% 36% 23% 30% 27% 17% 11% Thailand Asia Europe Australia Middle East 18% 14% 32% 20% 38% 3Q12 9M12 35% 3Q13 9M13 Thailand Asia Europe Australia Middle East 6% 4% 2% 3% 2% 6% USA Others 12% 7% 3% 9% 2% 3% 2% 5% USA Others Note: Others include Latin America, Canada, South America, etc figures included 2 properties in Maldives 17

18 Food Business Ootoya 18

19 Food s Portfolios at the end of September 2013: 11 brands with 714 outlets nationwide Brands BKK Upcountry Total KFC Mister Donut Auntie Anne s KFC Pepper Lunch Chabuton Ryu Shabu Shabu Pepper Lunch Beard Papa s Chabuton RYU The Terrace Yoshinoya Ootoya Cold Stone The Terrace Yoshinoya Ootoya Mister Donut Auntie Anne s Beard Papa s Cold Stone Total

20 QSR Financial Snapshot 3Q13: Despite slower growth than expected, food business was able to maintain its EBITDA Margin. 3,0 00 2,5 00 Total QSR Revenue (THB mil.) & EBITDA margin Other income Revenue from operation (MB) EBITDA Margin (%) 14.1% 15.2% 15.7% 12.9% 13.5% 12.5% 12.6% 7, % 6, % 14. 0% 6, % 14.0 % 16. 0% 14. 0% 12. 0% 29% 37% Total Food Revenue growth yoy. 30% 26% 21% 2, % 6, % 10. 0% 14% 12% 9% 12% 1,5 00 6, % 8.0 % 6, % 1, % 500 1,901 2,161 2,046 2,248 2,163 2,430 2,231 5, % 5, % 6,109 6, % 2.0% 0 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 Note: EBITDA excluded depreciation allocated to cost PL CBT2.3% 2.5% Ootoya 8.9% 20 AA 7.8% MD 19.8% Others 5.6% 3Q12 KFC 53.1% Others: CSC 2.1% BP 1.2% YO 1.4% TT 0.6% RYU 0.4% 5, % 9M12 9M13 Revenue contribution by brands CBT PL Others 2.5% 2.5% 5.9% Ootoya 8.9% AA 8.5% 0.0 % MD 20.5% 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 3Q13 KFC 51.2% Others: CSC 2.1% BP 0.4% YO 2.3% TT 0.8% RYU 0.2% o o o 9M12 9M13 In 3Q13, total revenue grew by 9% yoy or Bt184n to Bt2,231 mn. The incremental revenue mainly driven by MD, KFC, AA and Yoshinoya, respectively. EBITDA margin was maintained at about 13%, mainly driven by effective cost control. KFC, MD, AA and Ootoya remained the top 4 brands contributing 90% of total revenue in 3Q13.

21 SSS and TSS in 3Q13: Consumption slow down continued to impact SSS and TSS growth. o o For 3Q13, Same Store Sale (SSS) contracted by about 0.3%, mainly from performance of key brands, particularly KFC. Total System Sale (TSS) was 7.9%. Ootoya reported significant improvement in SSS from -4.3% in 1H13 to 8.0% in 3Q13 driven by advertising and marketing campaign. Brand SSS TSS No. of outlets SSS TSS 3Q12 3Q13 3Q12 3Q13 3Q12 3Q13 9M12 9M13 9M12 9M13 KFC 6.0% -1.8% 12.9% 4.1% % 2.1% 17.2% 8.2% Mister Donut 8.5% 2.5% 15.3% 11.4% % 5.6% 10.8% 14.7% Auntie Anne s 10.6% 0.5% 24.1% 18.3% % 3.6% 22.7% 22.3% Pepper Lunch -6.5% 0.8% 40.2% 17.3% % -0.7% 45.3% 16.3% Beard Papa s -20.1% -23.4% 39.1% -61.9% % -22.1% 36.1% -38.3% Chabuton -29.2% -14.5% 73.1% 7.8% % -13.4% 81.8% 22.4% Ryu Shabu Shabu -3.9% -27.1% -3.9% -21.7% % -16.2% -9.9% -16.4% Cold Stone -33.4% -5.6% 21.3% 11.9% % -5.3% 60.1% 6.2% The Terrace NA 0.7% NA 51.1% 3 6 NA 3.8% NA 54.4% Yoshinoya NA -1.8% 514.3% 80.2% 7 17 NA -18.3% NA 81.6% Ootoya NA 8.0% 254.0% 8.4% NA -0.3% 967.1% 2.1% Total 5.4% -0.3% 25.8% 7.9% % 1.8% 30.0% 11.3% 21

22 New Brand: Tenya (1/2) CRG has signed master franchise agreement with TEN Corporation,Japan for TENYA No.1 Tempura and Tendon (Tempura bowl) restaurants from Japan on 4 th July,

23 New Brand: Tenya (2/2) Tenya is know in Japan as Tendon Tenya, was first opened in 1989, at Asakusa Tokyo No.1 Tempura brand in Japanese- Quick Casual style with 137 branches across greater Tokyo The restaurant is famous for serving a variety of tempura menu and authentic taste originated from Asakusa a tourist-populated area in Tokyo First branch in Thailand opened at Central Plaza Bangna, 3 rd floor 23

24 Medium Term Outlook Centara Water Pavillion Hotel Bangkok 24

25 2013 Target QSR business: o Revising SSS to 2%-3% and TSS to 12% -13%. However, EBITDA margin is targeted to maintain at 14%. Reduction in tax rate from 23% to 20% is also a key driver of net profit growth. Hotel business: o Revising occupancy up to 80%. RevPar is targeted to increase by 33%-34%. QSR 9M13 FY13E SSS (%) 1.8% 2% - 3% TSS (%) 11.3% 12% - 13% # of Outlets Hotel 9M13 FY13E OCC (%) 79.9% 80% Revenue and Profit in FY13 by Segmentation Hotel 46% Food 41% Revenue Profit Food 54% Hotel 59% ARR (Growth yoy) RevPar (Growth yoy) 14.1% 15% - 16% 33.6% 33% - 34% 25 Central Plaza Hotel Pcl.

26 Investment and Net D/E Ratio o In 2013, total CAPEX is about Bt1,820mn including: o o Investment in Centara Rasfushi Resort & Spa (CRF) Maldives (Bt485mn) and acquisition of additional shares (15.4%) in Centara Karon in February in total of Bt120mn. Annual hotel renovation and food outlet expansion (Bt1,215mn) CAPEX vs. EBITDA Net D/E Ratio (THB Million) 7,000 6,000 5,000 CAPEX EBITDA* (THB Million) 40,000 30, Net Debt Equity Gearing Ratio ,000 3,000 20, ,000 10, , E 2014E 2015E 2016E 2017E Note: Excluding investment in budget hotel * EBITDA before gain and expense from Property Fund - CTARAF 26 Central Plaza Hotel Pcl. 2013E 2014E 2015E 2016E 2017E Note: Excluding Asset Revaluation in

27 CENTEL s Milestone E 2018E Hotel 13 hotels QSR 6 Brands, 511 outlets Hotel 34 hotels (29 in Thailand and 5 in Overseas QSR 12 brands, 677 outlets Hotel 45 hotels (35 in Thailand and 10 in Overseas QSR 13 brands, =753 outlets Hotel > 90 hotels Hotel in Overseas > 30 QSR 17 brands, 1,000 outlets 27

28 Thank you Centara Grand Island Resort & Spa, Maldives 28

29 Hotel Portfolios (1/2): Total 42 hotels in operation by the end of 2013 with total 7,890 rooms (including 15 owned and JV properties and 27 hotels under management contract). Owned Hotel 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 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 new in 2013 Property Fund Hotel Hotel Name #Rms Country 14 Centara Grand Samui 202 Thailand Joint Venture Hotel 15 Centara Kata Resort Phuket 158 Thailand Subtotal Owned, JVs and Property Fund 3, Central Plaza Hotel Pcl.

30 Hotel Portfolios (2/2): Total 42 hotels in operation by the end of 2013 with total 7,890 rooms (including 15 owned and JV properties and 27 hotels under management contract). Managed Hotel Hotel Name #Rms Country 16 Khum Phaya Resort, Boutique 87 Thailand 17 Centara Udon Thani 259 Thailand 18 Centara Chaan Talay, Trat 44 Thailand 19 Centara Duangtawan Chiang Mai 512 Thailand 20 Centara Sappaya, Rayong 13 Thailand 21 Centra Ashlee Hotel Patong 110 Thailand 22 Away Suansawan Chiang Mai, Boutique 50 Thailand 23 Centara Anda Dhevi, Krabi 138 Thailand 24 Centara Plaza Hotel Pattaya 152 Thailand 25 Nova Hotel & Spa Pattaya, Boutique 79 Thailand 26 Chen La Resort & Spa Phu Quoc, Boutique 108 Vietnam 27 Waterfront Suites Phuket 39 Thailand 28 Centra Tuam Resort Bali 90 Indonesia 29 Centara Grand West Sands, Phuket 316 Thailand 30 Centara Hotel Khonkaen 196 Thailand 31 Centara Sandy Beach Da Nang Vietnam 188 Vietnam 32 Centara Koh Chang Resort 157 Thailand 30 Central Plaza Hotel Pcl. Hotel Name #Rms Country 33 Centara Poste Lafayette, Maurittius 100 Maurittius 34 Centra Government Complex 204 Thailand 35 Centra Coconut Beach Samui 55 Thailand Centara Watergate Hotel & Spa Bangkok Centara Passikudah Resort & Spa Srilanka Khao Lak Seaview Resort & Spa, Centara 281 Thailand 125 Srilanka 215 Thailand 39 Centra Central Station Bangkok 150 Thailand 40 Centara Grand Modus Pattaya 215 Thailand Centara Grand Phrathamnak Resort Pattaya Centara Grand Azuri Resort & Spa Mauritius Subtotal Managed Hotels 4,078 Grand Total 7,890 new in 2013 & already in operation 165 Thailand 100 Mauritius