Central Plaza Hotel Public Company Limited OPPORTUNITY DAY: 2Q15, 01 September 2015
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
AGENDA Financial Summary 1 3 Medium Term Outlook Performance by Business 2 4 Appendix 3
AGENDA Financial Summary 1 3 Medium Term Outlook Performance by Business 2 4 Appendix 4
Consolidated Earnings 2Q15 & 1H15 Significant profitability improvement is mainly driven by strong recovery of Bangkok hotels and greater profit margin from food business. Financial highlights: THB million 2Q14 2Q15 % chg 1H14 1H15 % chg Hotel revenue* 1,733.7 1,903.1 9.8% 4,061.2 4,633.5 14.1% Food Revenue 2,603.1 2,633.1 1.2% 4,901.0 5,058.6 3.2% Total Revenues 4,336.8 4,536.2 4.6% 8,962.3 9,692.0 8.1% EBITDA 637.5 840.3 31.8% 1,808.9 2,324.4 28.5% EBITDA (%) 14.7% 18.5% 20.2% 24.0% Net Profit 41.6 246.2 492.1% 543.5 1,080.1 98.7% EPS (Baht/ share) 0.03 0.18 0.40 0.80 Note: * Excluded deferred income from property fund Total revenue by business Hotel Food 60% 58% 55% 52% 40% 42% 45% 48% 2Q14 2Q15 1H14 1H15 EBITDA by business 41% 44% 25% 29% 59% 56% 75% 71% 2Q14 2Q15 1H14 1H15 Net profit after tax by business 69% 25% 28% 223% 31% 75% 72% -123% 2Q14 2Q15 1H14 1H15 5
Financial Position as at 30 Jun 15 Balance Sheet Summary as at 30-Jun-15 Summary of Debt Profile Unit: Btmn Dec-14 Jun-15 Interest bearing debt ( IBD ) was Bt9,190mn with average cost of debt of 4.05%. 28,709 27,761 Long term loan Float Rate loan 16,993 15,549 11,716 12,212 72% 63% Total Asset Total Liability Total Equity Key financial ratios 4Q14 2Q15 Net Debt/Equity 1.4 1.3 IBD/Equity 0.9 0.8 6
AGENDA Financial Summary 1 3 Medium Term Outlook Performance by Business 2 4 Appendix 7
Hotel Business 8
Hotel Portfolios at the end of July 15 60 HOTELS WITH 11,777 ROOMS Hotels in operation Owned hotels Property Fund Managed hotels Total % Thailand 3,358 202 3,584 7,144 92% Hotels in pipeline by target opening year 2,000 Overseas Thailand Overseas 252 409 661 8% Total Rooms 3,610 202 3,993 7,805 100% Total Hotels 14 1 26 41 Hotels in pipeline Owned Property Fund Managed Total % Thailand 353-1,392 1,745 44% Overseas 300-1,927 2,227 56% Total Rooms 653-3,319 3,972 100% Total Hotels 4-15 19 1,500 1,000 500 0 700 360 297 96 440 400 870 809 4Q15 2016F 2017F 2018F Remark: Overseas include Indonesia, Laos, Maldives, Sri Lanka, Doha, Oman and China Hotel Portfolio by brand (incl. current pipeline) Total portfolio Owned Property Fund Managed Total % 5% 13% Centara Grand Thailand 3,711 202 4,976 8,889 72% 38% Centara Overseas 552-2,336 2,888 28% Centra Total Rooms 4,263 202 7,312 11,777 100% 44% Others Total Hotels 18 1 41 60 *2 owned COSI + 2 New Maldives projects 9
Hotel performance: 2Q15/ 1H15 All locations showed positive Revpar growth in Q2 with total Revpar growth of 11%. Bangkok has continued its strong performance. Overall Revpar growth in 1H15 was 8.6%. OCC (%) 2Q14 2Q15 Chg Bangkok 50.6% 79.3% 28.7% Upcountry 75.3% 74.4% -0.9% Maldives 89.5% 88.1% -1.4% Average 69.3% 76.6% 7.3% ARR (Bt) 2Q14 2Q15 %Chg Bangkok 3,153 3,168 0.5% Upcountry 3,235 3,424 5.8% Maldives 14,790 16,401 10.9% Average 4,197 4,213 0.4% RevPar (Bt) 2Q14 2Q15 %Chg Bangkok 1,595 2,513 57.5% Upcountry 2,437 2,548 4.5% Maldives 13,237 14,449 9.2% Average 2,908 3,228 11.0% OCC (%) 1H14 1H15 Chg Bangkok 49.4% 82.2% 32.8% Upcountry 80.6% 79.7% -0.9% Maldives 89.9% 89.0% -0.9% Average 72.4% 80.9% 8.5% ARR (Bt) 1H14 1H15 %Chg Bangkok 3,023 3,158 4.5% Upcountry 4.289 4,365 1.8% Maldives 18,296 19,366 5.8% Average 5,186 5,039-2.8% RevPar (Bt) 1H14 1H15 %Chg Bangkok 1,494 2,595 73.7% Upcountry 3,457 3,477 0.6% Maldives 16,445 17,233 4.8% Average 3,755 4,079 8.6% 10
Hotel performance: 2Q15/ 1H15 60.0% 40.0% 20.0% 0.0 % -20.0 % -40.0 % -60.0 % -80.0 % -10 0.0% 2Q15 and 1H15 growth in revenue and profit margin are primarily driven from Bangkok hotels, partly due to the low base last year. The 16% growth in management fee income also enhance EBITDA margin in 1H15. Slight drop in number of room is related to major renovation in one of our Maldives hotels. Total revenue* (Btmn) and # of Available Room EBITDA (Btmn) and EBITDA margin 6,000 5,000 4,000 3,000 2,000 1,000-3,813 3,810 3,812 3,793 + 572MB 3,000 (+ 14%) 33% 36% 3,000 2,600 22% 25% 4,634 2,200 4,061 +304MB 1,800 2,000 (+23%) + 169MB 1,400 1,654 (+ 10%) 1,000 +92MB 1,350 1,734 1,903 1,000 600 (+24%) 200 375 467 2Q14 2Q15 1H14 1H15 - (200) 2Q14 2Q15 1H14 1H15 Total revenue # of rooms EBITDA %EBITDA Margin 11
Revenue Contribution by Location: 1H15 Smaller contribution from Maldives was due to on-going major renovation of Centara Grand Maldives while strong recovery of Bangkok hotels from low base last year resulted in big increase in contribution from Bangkok. Under normal year with existing portfolio, contribution from Bangkok and Maldives are expected to be around 27%-29% and 20%-22%, respectively. 1H14 1H15 29% 21% 22% 19% 16% 17% 15% 13% 8% 8% 8% 7% 6% 6% 3% 2% Bangkok Maldives Phuket Pattaya Hua Hin Samui Krabi Others 12
Feeder Market 1H15 The market showed strong growth from East Asia, primarily driven by Chinese. More than 50% decline in Russian tourists led to the overall European s decline by 14%. Our guests moved in line with the market. Asian outgrew European, thus making higher contribution in 1H15. CENTARA s Feeder Market by room nights: 1H15 [1H14] 3% 2% 4% 8% 15% 32% Europe [42%] Asia Thailand Australia Middle East USA Others [3%] [2%] [4%] [10%] [17%] 36% [22%] Thailand s tourist arrivals: 1H14 VS 1H15 Millions 1H14 1H15 % yoy East Asia 6.28 9.84 57% Europe 3.27 2.82-14% The Americas Source: TAT 0.56 0.62 11% South Asia 0.57 0.68 17% Oceania 0.46 0.44-4% Middle East 0.25 0.28 14% Africa 0.07 0.07 - Total 11.47 14.76 29% 13
Marketing Updates & Outlook Bangkok Expecting short term impact from bomb on 17 August 2015. Corporate and leisure already start to return Govt action restrict travel very mild (except Hong Kong) Recovery on MICE business will be in 1Q16. Krabi Strong demand in July and August from international markets Maldives: Many hotel operator used rate promotions to drive demand in low season. CIRM didn t entertain this due to the renovation plan CRF was able to compete quite well due to solid occupancy of early booked business. Pattaya The loss of dominant Russian market has now mostly been off-set and the property starts to exceed plan. Phuket Returning Australia market and a growing Chinese quality FIT has supported Centara Grand Phuket. July and August should continue to see similar conditions prevail Samui July and August are high season months and it is expected to see positive gain above plan within the Q3 period 14
Food Business 15
Food Performance 2Q15 & 1H15 20.0% 0.0 % -20.0 % -40.0 % -60.0 % -80.0 % -10 0.0% SSS growth is mainly driven by small brands in 2Q15. Profit margin improved notably to 14% in 2Q15 due to lower key raw material cost, closed down non-profitable outlets and improvement in efficiency. SSS % 2Q14 2Q15 1H14 1H15 2Q14 2Q15 1H14 1H15 Top 4 Brands 0.5% -1.7% -0.2% -0.9% 8.3% 0.7% 7.6% 2.6% Others -2.0% 7.4% -8.0% 8.2% 8.8% 5.3% 5.1% 9.1% Average 0.3% -1.0% -0.9% -0.1% 8.4% 1.3% 7.4% 3.3% TSS Total Revenue (Btmn) and # of outlets EBITDA (Btmn) and EBITDA margin 6,000 5,000 4,000 3,000 2,000 1,000-767 774 767 774 + 30MB (+ 1%) 2,603 2,633 4,901 5,059 2Q14 2Q15 1H14 1H15 Sale # of outlets 800 + 158MB 700 (+ 3%) 600 500 400 300 200 100-800 600 400 200-10.1% 14.2% 262 373 9.4% 13.3% 459 671 2Q14 2Q15 1H14 1H15 EBITDA + 111MB (+ 42%) %EBITDA Margin +212MB (+ 46%) 16
Revenue Contribution by Brand 1H15 1H14 1H15 54% 55% 19% 19% 8% 7% 9% 8% 8% 8% 2% 2% KFC Mister Donut Auntie Anne's Ootoya Other Heavy Food Other Light Food 1H15 KFC Mister Donut Auntie Anne s Ootoya Other heavy food Other light food #Outlets 202 320 126 45 68 13 774 Total % of total outlets 26.1% 41.3% 16.3% 5.8% 8.8% 1.7% 100.0% YoY Increase (#outlet) +3-1 +6 +1 +5-7 +7 *Heavy food included Pepper Lunch, Chabuton, Ryu, The Terrace, Yoshinoya, Tenya and Katsuya *Light food included Cold Stone and Beard papa s (closed down 6 outlets and terminated in 3Q14) 17
Portfolio Allocation by Location as at 30 Jun 15 774 OUTLETS NATIONWIDE Brands # Outlets KFC 202 Mister Donut 320 Auntie Anne s 126 Ootoya 45 Pepper Lunch 15 Cold Stone 13 Ryu Shabu 1 7.0% in the North 3.1% in the West 58.3% in Central 11.9% in Northeast The Terrace 13 Chabuton 15 Yoshinoya 17 Tenya 4 Katsuya 3 Total 774 9.4% in the South 10.3% in the East 18
AGENDA Financial Summary 1 3 Medium Term Outlook Performance by Business 2 4 Appendix 19
Guidance 2015 Hotel FY14 FY15F OCC 75% 80% RevPar +4% +7% Hotel Business: Key drivers 2015 Revenue from operation -0.5% +11% Recovery of Bangkok s hotels Sustainable growth in upcountry and Maldives Profitability improvement from Bangkok hotels Food FY14E FY15F SSS +1% Flat TSS +9% +4% Outlet expansion +5% +1% Food Business: Key drivers 2015 Profit margin improvement from lower price of key material costs, closing down of nonperforming outlets, improving efficiency, and better cost control. 20
Key Development 2020 2014 >90 hotels (70% managed hotels ) >1,000 outlets 45 hotels (67% managed hotels) 781 outlets of 12 brands 2010 32 hotels (56% managed hotels) 512 outlets of 8 brands 21
AGENDA Financial Summary 1 3 Medium Term Outlook Performance by Business 2 4 Appendix 22
Hotels in Operation at end of July 2015 (1/2) Total 41 hotels in operation at the end of April 2015 with 7,805 rooms (including 15 owned hotels and 26 hotels under management contract). List of 15 owned & JV hotels (3,812rooms) Asset types # Properties #Rms Owned & JV hotels 15 3,812 Hotels under management contracts 26 3,993 Grand total 41 7,805 Owned Hotels 1 Hotel Name #Rms Country 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 Hotel Name #Rms Country Owned Hotels (continued) 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 14 Centara Kata Resort Phuket Property Fund Hotel 158 Thailand 15 Centara Grand Samui 202 Thailand 23
Hotels in Operation at end of July 2015 (2/2) List of 26 hotels under management contract (3,993 rooms) Managed Hotel Hotel Name #Rms Country 16 Khum Phaya Resort, Boutique 87 THA 17 Centara Udon Thani 259 THA 18 Centara Chaan Talay, Trat 44 THA 19 Centara Sappaya, Rayong 42 THA 20 Centra Ashlee Hotel Patong 110 THA 21 Centara Anda Dhevi, Krabi 135 THA 22 Centara Plaza Hotel Pattaya 152 THA 23 24 Nova Hotel & Spa Pattaya, Boutique Chen La Resort & Spa Phu Quoc, Boutique 79 THA 36 VNM 25 Waterfront Suites Phuket 39 THA 26 Centra Taum Resort Bali 90 IND 27 Centara Grand West Sands, Phuket 545 THA 28 Centara Hotel Khonkaen 196 THA 29 Sandy Beach Non Nuoc Resort Danong Vietnam Managed by Centara 118 VNM 30 Centara Koh Chang Resort 157 THA 31 Centra Government Complex 204 THA Hotel Name #Rms Country 32 Centra Coconut Beach Samui 55 THA 33 34 Centara Watergate Hotel & Spa Bangkok Khao Lak Seaview Resort & Spa, Centara 281 THA 230 THA 35 Centra Central Station Bangkok 150 THA 36 Centara Grand Modus Pattaya 252 THA 37 Centara Grand Phrathamnak Resort Pattaya 165 THA 38 The Blue Marine Resort & Spa Phuket 266 THA 39 Centara Ceysands Resort & Spa Srilanka 165 SRI 40 Centra Avenue Hotel Pattaya 51 THA 41 Centara Pelican Bay Residence & Suites Krabi Opened in 2Q15 85 THA 24
Thank You 25