Minor International Public Company Limited

Minor International Public Company Limited Management Discussion & Analysis Financial Performance as of March 31, 2009 1Q09 Performance Minor International Pcl. ( MINT ) reported 1Q09 performance with total revenues of Bt 4,255m showing a slight drop of 1% compared to the same period of 2008. Amidst several unfavorable economic and political situations, MINT has reported its 1Q09 net income of Bt 400m with a decline of 47% y-y. This was attributable to a significant drop in hospitality, timeshare and residential property income. Food and hotel businesses remained MINT s key revenue drivers, contributing 60% and 30% of total revenues, respectively. Food business grew 33% driven by the expansion of 21 outlets during the first quarter and the full-quarter consolidation of Thai Express Concepts Pte Ltd ( Thai Express ), invested in May 2008. Thai Express posted strong growth in total system sales as high as 73% over the same period last year. On top of the expansion, food revenues and profitability were also strengthened by franchising business showing a strong y-y growth of 62% with Bt 87m in 1Q09. As for the hotel business, albeit a resilient average room rate, MINT s hotel business experienced a significant decline in average occupancy rate from 80% in the first quarter last year to 58% this year as a result of the prolonged political unrest and the aftermath of the airport closure in early December 2008. The latter, in particular, took a great toll on MINT s hotel operations and profitability as December to February months deemed as the peak tourism season. Consequently, declining occupancy rate has led to diminished profitability in addition to smaller timeshare revenues and the absence of residential property revenues. Revenues Breakdown 1Q09 1Q08 Change (Bt m) ( Bt m) (%) Food 2,546 1,898 34 Hotel 1,276 1,760-27 Residential Property - 141-100 Spa 82 111-25 Retail Property & Entertainment 143 150-5 Management 72 125-42 Others 136 107 27 Total 4,255 4,292-1 1 1

As at the end of 1Q09, MINT reported total assets of Bt 24,929m, decreasing Bt 135m compared to total assets at the end of 2008, attributable to; 1. Reduction in cash and cash equivalent following the interim dividend payment 2. Increase in land held for future development and projects under development, i.e. St. Regis Hotel and Residence and Anantara Resort & Spa, Baa Atoll, Maldives MINT reported total liabilities of Bt 12,848m, increasing Bt 187m due mainly to the increase in construction payables. Shareholders Equity, on the other hand, declined Bt 322m to Bt 12,082m from the interim dividend payment amounting to Bt 782m. As at the end of 1Q09, MINT and subsidiaries reported operating cash flows of Bt 956m, down by Bt 247m compared to 1Q08, due mainly to the declining net profits from operations. The investing cash flows of Bt 603m financed the projects under development of Bt 582m. MINT s financing cash flows amounting to Bt 782m were paid for interim dividend. MINT s net cash inflows reported a decline of Bt 421m at the end of 1Q09. Major Developments in 2009 Hotel Business In March 2009, the first serviced suite/apartment purely managed by MINT, Anantara Baan Ratchaprasong Serviced Suite, has officially opened, accommodating 97 serviced suites. Food Business As at the end of 1Q09, MINT s total food outlets reached 1,064, including the owned equity of 656 outlets, equivalent to 62% of total, and the franchise of 408 outlets, or 38% of total. Of total outlets, Thailand s food outlets accounted for 67% or 710, while the remaining 354 or 33% located in Australia, New Zealand, Singapore, China, Middle East and South East Asia. Net openings in 1Q09 are 21 outlets; 11 of which are self-owned while the remaining 10 are franchised. During 1Q09, 3 out of 5 Le Jazz outlets were closed down. The remaining 2 outlets are expected to be closed within 2Q09. Food Outlets by Owner Equity and Franchise 1Q09 2008 Change Owner Equity 656 645 +11 Franchise 408 398 +10 Total 1,064 1,043 +21 2 2

Food Outlets by Brand 1Q09 2008 Change The Pizza 246 243 +3 The Coffee Club 220 214 +6 Swensen s 224 222 +2 Sizzler 39 36 +3 Dairy Queen 219 219 - Burger King 23 22 +1 Thai Express 70 61 +9 Others* 23 26-3 Total 1,064 1,043 +21 Note: Others include airport outlets and Le Jazz in China Segmentation Performance Even though, food business is the leading contributor of MINT s revenues, the key EBITDA contributor remains the hospitality & leisure businesses. In 1Q09, food business s EBITDA accounted for 36% of MINT s total EBITDA, while the remaining 48% came from hotel and the rest of 16% from other businesses including spa retail properties and entertainment businesses. EBITDA Contribution (Bt m) 1Q09 1Q08 Change (Bt m) ( Bt m) (%) Food 386 290 33 Hotel 538 867-38 Other Business 123 214-42 Total 1,047 1,371-24 Food Business Performance MINT s food business improved strongly compared the previous year thanks to the relative resiliency compared to the tourism-related business. In 1Q09, sales revenues (including franchised outlets) grew 16% y-y driven by the continued outlet expansion. Furthermore, efficient cost management played an important role in leading MINT s food business to a superior performance over the peer group in the industry. Less pressure from raw food material costs coupled with successful product initiation and marketing promotional efforts allow MINT to enjoy improved margins. During this quarter, MINT has 3 3

fully realized share of profits from the investment in The Coffee Club, its associate, in addition to the full-quarter accounting consolidation of Thai Express financial performance. This, in sum, has resulted in the strengthened performance of food business. Food Business Performance by Brand Total-System-Sales (%) 1Q09 1Q08 The Pizza 13.6 13.9 The Coffee Club 17.3 24.2 Swensen s 8.3 8.8 Sizzler 11.6 11.4 Dairy Queen 14.6 4.3 Burger King 3.6 24.0 Thai Express 72.9 - Average 16.1 16.2 Note: Average performance (Local Currency) based on total operating stores including airport outlets and Le Jazz which currently contributed less than 1% of total food revenues. Hotel Business Performance Average occupancy rate declined from 80% to 58% y-y due primarily to the prolonged political unrest and the aftermath of airport closure. The average daily rate was Bt 7,228 per night. This improvement was led by outstanding performances of the Anantara group (8 hotels in Hua Hin, Chiang Rai, Samui, Bali, Abu Dhabi, Phuket and 2 in Maldives). The self-developed brand of Anantara group of hotels retained solid growth in ADR of 17% to Bt 10,692 per night in 1Q09. Unlike Anatara s, ADR of Marriott group, consisting of 4 hotels in Bangkok, Pattaya, Hua Hin and Phuket, declined 11% y-y to Bt 4,751 a night in 1Q09. Likewise, Four Seasons group, consisting of 4 hotels in Bangkok, Chiang Mai, Chiang Rai and Samui, also reported a slight ADR decline of 9% y-y to Bt 9,738 a night. MINT reported total hotel revenues (including hotel management fee) in 1Q09 of Bt 1,348m, down by 28%. This again was a result of the declining occupancy compared to last year during the peak tourism season. Revenues from the associates (3 hotels in Maldives, 4 hotels in Tanzania and 1 hotel in Vietnam) are not included in MINT s hotel revenues; rather, they are recognized under equity method. 4 4

Hotel Business Performance by Brand Occupancy (%) 1Q09 1Q08 Marriott 69.9 89.7 Anantara 51.4 77.7 Four Seasons 47.4 66.6 Others 33.2 54.5 Average 58.2 80.1 Average Room Rate (Bt/night) 1Q09 1Q08 Marriott 4,751 5,333 Anantara 10,692 9,115 Four Seasons 9,738 10,647 Others 10,984 9,421 Average 7,228 7,252 Note: 18 hotels Residential Property Business Performance MINT has introduced the mix-used development, constructing real estate property in conjunction with the hotel. The Estate Samui, adjacent to MINT s Four Seasons Hotel, Samui, comprises of 14 villas. Of which, 7 were sold during 2006-2008. The remaining 7 villas are expected to be sold within 2011. In addition to the Estate Samui, MINT began taking bookings for St. Regis Residence, the buildingshared condominium with St. Regis hotel. St. Regis is recognized as one of the most luxurious condominium in Bangkok, expected to be completed in late 2010. Residential property sales revenues were not recognized this quarter. Spa Business Performance Currently, MINT operates spa under brands, Anantara and Mandara. In addition to the equity owned spas, MINT took on the position in spa management for high-end hotels across the globe. As at the end of 1Q09, MINT owns and manages 30 spas in Thailand, China, Maldives, Tanzania, Jordan, UAE, Turkey, India, Egypt and Vietnam. In 1Q09, MINT reported spa revenues of Bt 83m, decreasing 25% y-y. The significant decline was in hospitality industry which impacted from overall adverse sentiments. MINT aims to expand the spa business through pure management so as to enhance future sales and profitability. 5 5

Retail Property & Entertainment Businesses Performance MINT s revenues from retail property and entertainment businesses declined 5% in 1Q09 from Bt 150m in the same period last year due primarily to a drop in foreign tourists as all of the shopping plazas, located in adjacent to MINT s hotels in Pattaya and Bangkok, including the newly opened Turtle Village shopping plaza in Phuket. MINT s retail shopping plazas, with total rental space of approximately 30,000 Sqm, are situated in the hotel areas accommodating as hotel shopping plazas as well as community malls. Financial Ratio Analysis March 31, 2009 March 31, 2008 Profitability Ratio (Annually) Gross Profit Margin (%) 66.04% 65.35% Net Profit Margin (%) 9.41% 17.19% Return on Equity (%) 3.27% 6.85% Efficiency Ratios Return on Assets (%) (Annually) 1.60% 3.33% Collection Period (days) (4Q) 10 15 Liquidity Ratio Current Ratio (x) 0.75 0.88 Leverage & Financial Policy Debt to Equity Ratio (x) 1.06 1.02 Net Interest Bearing Debt to Equity Ratio (x) 0.75 0.73 Interest Coverage (x) (Annual) 10.00 12.74 MINT s gross profit margin in 1Q09 is relatively sustained at 66.04%, reflecting effective cost and production management amidst rising costs and lower hotel revenues. Nonetheless, net profit margin declined from 17.19% to 9.41% attributable to weaker hotel and residential businesses. Return on equity, hence, fell from 6.85% to 3.27% y-y due chiefly to incremental shares from warrant exercise in 2008 and the impact from declining net profits. 6 6

In terms of efficiency, return on assets also declined from 3.3% to 1.6% y-y. Collection days reduced from 15 to 10 proportionately to the increased food revenues, which usually entail lower receivables than hotel business. Current ratio dropped from 0.88x to 0.75x as a result of investment in Anantara Phuket and St. Regis, together with the interim dividend payment. Interest bearing debt to equity slightly increased from 0.73x to 0.75x, in line with declining interest coverage ratio, reflecting smaller cash flows from operation. Management Analysis and Forward Looking Statements 2009 is not a pleasant year for any industries or business operators, especially for Thai tourism industry and MINT is no exception. MINT s hotel business reported poorer y-y performance as a result of declining tourist confidence, ignited by the airport closure incident in late last year. The consequence adversely impacted hotels and tourism related operators in Thailand as the airport closure occurred during the peak traveling and vacation seasons. However, the sign of recovery gradually showed in a month after the government lifted the state emergency act, i.e. in late 1Q09. MINT s management was once again being proactive in coping with these unfavorable situations as MINT has already been through various issues over the past ten years starting from the economic crisis in 1997, the SARS in 2003 and the Coup in 2006. Even though each incident left us with damages and nothing else but poor performance, but it also provided us strengths to move forward and enable us to focus on the fundamentals and consistently deliver outstanding results. Note that MINT s earnings showed an average growth (Cumulative Average Growth Rate) of 26% in 1998-2008. Again, thanks to the management s bold execution made in 2003 to consolidate food service business with hotel business. Not only has the business consolidation enhanced the Company s balance sheet and revenue streams, but it has also strengthened the Company s business resiliency that the numbers can speak for itself. In this year, albeit weaker performance in hospitality business, MINT s food business has shown a superior performance with over 30% y-y growth on sales revenues. This is attributable to the continued shop expansion and incremental sales driven by successful acquisitions made last year. MINT s food strategy is to extend its franchise business and it is now showing over 60% y-y growth of recurring franchising revenues in 1Q09 generated by nearly 40% (of 1,060 shops) of franchised outlets worldwide. Strategically speaking, MINT s food business has offered a remarkable diversification to MINT s revenues and profitability. Its portfolio consists of various food brands that cover a wide range of consumers; from mass to selected services. This allows MINT to profit from both cases of economic recession and recovery. In addition, MINT s notable strategy on asset light and geographic expansions provides the Company the diversity every business operator needs to tackle any challenges. In addition to our intact long-term strategy of having two core businesses in food and hotel, we have accomplished the cost management throughout these difficult times. MINT has proactively started its cost rationalization and profit protection plan since late last year in order to minimize the impact on our financial performances. With the latest political incident in April, the management also anticipated the 7 7

continued slow recovery during 2Q-3Q on hotel business. However, we strongly believe in the solid fundamentals of Thai tourism industry and our diversified portfolio of hotels and we are looking forward to seeing a strong recovery as soon as late this year. Several renowned financial organizations, e.g. the World Bank, Asian Development Bank and Bank of Thailand, etc., share the unanimous estimate of global economic recovery in 4Q09. Also, in the next few quarters, several economic stimulus packages are expected to be launched globally. Apart from the economic stimulus, Thai government has also put tourism stimulation on its priority list with an aggressive launch of various tourism promotion campaigns to fuel demand. MINT, by the same token, has never been better prepared to handle this downturn. Its priority is to ensure that cash flows remain solid as to strengthen its stability and reserve for any acquisition opportunities in the future. Moreover, we are diligently expanded our business especially on the asset-light frontier with the recently opened Anantara Baan Rajprasong Serviced Suites in Bangkok and the upcoming purely managed hotel Anantara Qasr AL Sarab in Abu Dhabi. In addition, it recently signed hotel management contracts under Anantara brand with a group of hotel owners in Morocco, India, Oman, Bali and Cape Verde in Africa. In late April, MINT has also secured 7-year long-term loans from two local banks in total of Bt 4,000 m with the purpose mainly for refinancing. Despite overall unfavorable business circumstance, MINT has illustrated not only its financial strength and but also a strong commitment from the commercial banks. With this financial success, MINT is expecting to enjoy interest savings on its long-term credit facilities in addition to fund securing for future business expansion. Apart from our operation, MINT is undergoing group business restructuring plan having been approved by the shareholders in March. With the objective to eliminate the cross-shareholding and to diversify MINT s business units, MINT will propose share swap of 1 MINOR share for 1.14 MINT shares through the tender offer process. According to the plan, MINT will make a specific capital reduction which will enhance the Company s earnings per share and return on equity. The tender offering is currently proceeding as the Securities and Exchange Commission has approved the plan on May 7, 2009. Signature... (Mrs. Pratana Mongkolkul) Director 8 8