Minor International Public Company Limited

Minor International Public Company Limited Management Discussion & Analysis MINT s financial performance as of 30th September 2008 Summary of Key Financial Performance 3Q08 Performance Minor International Pcl (MINT) would like to report its 3Q08 revenues of Bt 4,119m showing a 25% increase compared to the same period last year. However, its net profit of Bt 376m showed a increase of 1.3% y-y. Its key business drivers in this quarter included its food and hotel which contributed 52% and 29%, respectively. Its food business showed a stronger y-y performance of 41% increase due to the new outlet expansions of 37 outlets and the strong same-store-sales growth in this quarter. In addition, the revenue consolidation from Thai Express, the newly acquired brand from Singapore, which fully contributed in 3Q08 after the successful acquisition made in May, showing a total system sales of 85% y-y. MINT s hotel business performance, on the other hand, showed a decline in occupancy rate to 64% compared to 70% in the same period last year. This was caused by declining tourist arrivals to Thailand in the month of September when it was a violent clash from the political situations. However, MINT s overall hotel performance remained strong due to the solid increase of average room rate to Bt 5,504 per night. The strong 19% y-y average room rate growth was mainly driven by 1) the increase of average room rate of the group of hotels under Anantara brand and especially Anantara Veligandu in Maldives 2) the increase of total revenue and room rate of hotel under Four Seasons brand especially Four Seasons Koh Samui giving the strengthened positioning after operating for two years. Note that the average room rate is calculated based on weighted total revenues from each hotel property, where Anantara Maldives and other hotel in Maldives were accounted as equity income and management contract income. 9M08 Performance For the nine months operation, MINT has reported an in-line financial performance with total revenues of Bt 12,326m showing an increase of 22% where its net profit of Bt 1,477m showed a solid increase of 40%. Key business drivers are food and hotel with 48% and 33% revenue contributions, respectively. MINT s revenue from food business increased by 25% due to the continued expansion of new food outlets of 96 outlets in the first nine months, and the consolidated accounting of Thai Express beginning in May. For its hotel business, occupancy for the first nine-month declined by 3% to 69% due to the political unrest situation in 3Q. However, the increased average room rate showed a significant increase of 19% to Bt 6,109 per night due to the continued growth of MINT s hotel business and its expansion through the strong brands and positioning. Revenues Breakdown 3Q08 3Q07 Change 9M08 9M07 Change (Bt m) ( Bt m) (%) (Bt m) ( Bt m) (%) Food 2,214 1,574 41 6,161 4,924 25 Hotel 1,180 1,171 1 4,075 3,775 8 Residential Property 317 n.a. 591 113 423 Spa 79 95-17 273 282-3 Retail Property & Entertainment 139 131 6 431 399 8 Management Fee 102 243-58 335 287 17 Others 88 88 12 460 325 42 Total 4,119 3,302 25 12,326 10,105 22 1 1

As end of 3Q08, MINT s total assets reported at Bt 23,919m showing an increase of Bt 2,639m. The increase was mainly due to: 1. Increase of long-term investment of both food and hotel businesses including The Coffee Club and Elewana Afrika 2. Increase of land and work-in-progress development including Anantara Phuket Hotel and St Regis Hotel & Residence, and fixed assets of new food outlet expansions 3. Increase of intangible assets from goodwill of Thai Express investment The Company reported total liabilities of Bt 11,606m as same as the end of last year. The change was due to increase of long-term loan for the investment in The Coffee Club. Its shareholders fund reported at Bt 12,313m increased by Bt 2,605m from increased retained earnings and the proceeds from warrants and employee stock options exercising. As end of 3Q08, the Company and its associates reported the operating cashflow of Bt 2,604m increased by Bt 1,445m compared to the same period last year. The increase was contributed by its core business earnings and the cash proceeds from selling the Estate Samui Residence. Its investing cashflow reported at Bt 4,106m which included the increase of investment in 1) long-term investment of Bt 1,833m for the Coffee Club, Thai Express and Elewana Afrika 2) work-in-progress and fixed assets of Bt 2,686m and 3) loan repayment of Bt 179m from its affiliate for Timeshare Phuket construction. MINT s financing cashflow as end of this quarter was a result of the increased cash proceeds from warrant and ESOP exercise of Bt 1,413m, increase of short and long-term loan of Bt 117m, net of dividend payment of Bt 479m. Its net cash as end of 3Q08 therefore reported an outflow of Bt 462m. New Developments in 3Q08 Hotel Business On-track development for Anantara Phuket Resort & Spa which construction completed with an official opening on 1 st October. The hotel is aimed the be the flagship Anantara Hotel providing all 83 units with pool villas. Apart from investment, the second pure-manage hotel under Anantara Hotel Management Contract was officially opened also in 1 st October at Sir Baniyas, under name Desert Island Resort and Spa, Abu Dhabi. Food Business As end of 3Q08, MINT reported total restaurants of 1,001 outlets including owned equity of 629 outlets or 63% of total and franchise of 372 outlets or 37% of total. The proportion by locations also being more diversified as Thailand s food outlets accounted for 679 or 68% where the rest of 322 outlets or 32% of total located in Australia & New Zealand, Singapore China, Middle East, and South East Asia. The newly opened restaurants in 3Q were at 37 outlets including 18 own equity and 19 franchised outlets. Food Outlets by Owner Equity and Franchise 2007 1Q08 2Q08 3Q08 Owner Equity 587 590 611 629 Franchise 318 335 353 372 Total 905 925 964 1,001 2 2

Food Outlets by Brand 2007 1Q08 2Q08 3Q08 The Pizza 201 207 215 226 The Coffee Club 188 193 197 203 Swensen s 183 191 204 213 Sizzler 35 35 35 35 Dairy Queen 207 206 212 217 Burger King 20 20 22 22 Thai Express 41 43 47 53 Others 30 30 32 32 Total 905 925 964 1,001 Note: Others include airport outlets and Le Jazz in China Segmentation Performance By its nature and together with strong domestic consumptions and retailers business in Thailand, food business contributed to MINT s revenue superior to the hotel business. However, MINT s hospitality and leisure business has continued to show its stronger profitability with EBITDA contribution 52% compared to food business s of 30%. EBITDA Contribution (Bt m) 3Q08 3Q07 Change 9M08 9M07 Change (Bt m) ( Bt m) (%) (Bt m) ( Bt m) (%) Food 296 224 32 874 705 24 Hospitality & Leisure 494 628 (21) 2,055 1,842 12 Residential Property 169-3 n.a. 299 46 550 Total 857 849 13 3,228 2,593 24 Food Business Performance MINT s food business in 3Q08 showed the significant improvement performance giving the solid growth of 23% y-y on its total-system-sales due mainly to the continued expansion, the increased of same-store-sales and the efficient cost structure and supply chain management. Moreover, the Company has fully consolidated Thai Express and equity income accounting of The Coffee Club starting this quarter. Both brands were the leaders in their segment showing a superior performance than the industry peers in the last quarter. Food Business Performance by Brand Total-System-Sales (%) 3Q08 3Q07 9M08 9M07 The Pizza 15.9 12.8 9.6 17.3 The Coffee Club 23.0 25.9 Swensen s 17.1 3.1 13.2 9.1 Sizzler 15.4-11.6 17.8-5.8 Dairy Queen 25.6-4.0 15.4 6.9 Burger King 20.5 28.0 28.9 23.8 Thai Express 85.0 77.8 Average 23.0 4.7 20.1 10.1 Note: Average performance based on total operating stores including airport outlets and Le Jazz which currently contributed less than 1% of total food revenues. 3 3

Hotel Business Performance In 3Q08, MINT s hotel occupancy for its 16 hotels reported at 64% declined from 70%, however showing a stronger average room rate to Bt 5,504 per night or 19% increase y-y. The increase was driven by strong performance of the Four Seasons group of hotels (Bangkok, Chaing Mai, Chaing Rai, and Koh Samui) showing 17% increase in average room rate to Bt 9,152 per night. The increase was clearly proved the strong recognition and brand positioning of the Four Seasons Group of Hotels in Thailand especially for Four Seasons Tented Camp Chaing Rai, Chaing Mai and Koh Samui which were rated top destinations in Asia by Conde Nast Traveler magazine in October 2008. For the Anantara Group of Hotels accounting for five locations including Hua Hin, Chaing Rai, Koh Samui, and 2 in Maldives posted the strongest increase of room rate to Bt 6,855 per night or 27% increase y-y. Anantara is initiated by MINT and Anantara Golden Triangle Chaing Rai recently recognized as one of the top destinations in Asia by Conde Nast. The Marriott Group of Hotels also continued its strength by showing a 9% y-y increase of average room rate to Bt 3,721 per night. MINT s hotel performance for its 9 months operations remained considerably strong giving the increase average room rate of 19% y-y yo Bt 6,109 per night albeit a small declined occupancy to 69% from 72% compared to last year. Total hotel revenues (not include hotel management fee) in 3Q08 reported at Bt 1,180m showing a marginal increase of 1% y-y. Its nine months revenues reported at Bt 4,075m showing a stronger growth of 8% y-y. Hotel Business Performance by Brand Occupancy (%) 3Q08 3Q07 9M08 9M07 Marriott 71.3 78.7 77.9 80.7 Anantara 63.9 62.4 66.7 66.4 Four Seasons 53.9 61.3 58.4 59.1 Others 37.0 50.5 45.6 58.8 Average 64.0 69.6 69.4 71.6 Average Room Rate (Bt/night) 3Q08 3Q07 9M08 9M07 Marriott 3,721 3,416 4,365 3,993 Anantara 6,855 5,384 7,617 6,287 Four Seasons 9,152 7,837 9,464 8,249 Others 6,206 3,021 7,584 2,556 Average 5,504 4,633 6,109 5,154 Note: 16 hotel properties in total including the newly opened Anantara Seminyak Bali Residential Property Business Performance The Company has initiated its mixed-use development in the adjunct area of Four Seasons Samui called The Estate Samui including 14 luxury free hold villas since late 2006. With target to close the selling by end of 2009, the Company has already sold 7 villas including 2 sold in 3Q. The Company plans to close the selling of all units in 2010. In addition to The Estate Samui, the Company has developed the residential condominium in Bangkok under brand St Regis which also complied with the mixed-use concept together with St Regis hotel in the same building. This luxury branded condominium expected to completed by late 2010. MINT reported its sales of residential property business of Bt 317m in 3Q08 with the total amount of Bt 591m for its 9 month operations. This posted the solid y-y sales growth of 423%. 4 4

Spa Business Performance MINT s operations in spa are under brands Anantara, and Mandara. The Company also manages hotel spa under their concept creations with altogether 29 spas including its own and managed only spas in Thailand, China, Tanzania, Jordan, UAE, Turkey, India and Bali. In 3Q08, MINT s spa revenues reported its sales of Bt 79m and its nine months revenues of Bt 273m. The sales were declined compared to the previous year to the relatively slow growth of the industry and the intensive competition. MINT s management believes the expansion of its spa business into the management contract will be able to enhance its sales and profitability looking forward. Retail Properties & Entertainment Businesses Performance MINT s retail properties and entertainment business as end of 3Q reported total sales revenue of Bt 139m increased by 6% y-y. Its nine months operation reported at Bt 431m showing an increase of 8% y-y due to the stronger retailers in this year. Financial Ratio Analysis September 30, 2008 September 30, 2007 Profitability Ratios (First 9 month) Gross profit margin (%) 64.07% 64.87% Net profit margin (%) 11.98% 10.41% Return on Equity (%) 13.41% 12.27% Efficiency Ratios Return on Assets (%) (First 9 months) 6.54% 5.51% Collection Period (days) (3 rd Quarter) 13 15 Liquidity Ratios September 30, 2008 December 31, 2007 Current assets/current liabilities (times) 0.84 1.07 Leverage & Financial Policy Total liabilities to Equity (times) 0.94 1.19 Net interest bearing debt to equity (times) 0.69 0.86 September 30, 2008 June 30, 2007 Interest coverage (times) (First 9 months) 9.14 6.50 Despite the fact that 3Q was naturally the low tourism season and the increased raw materials for food cost, MINT s financial ratios has maintained its strength especially showing its gross operating margin of 64%, thanks to the management s anticipation and the Company s efficient cost management. Moreover, its net profit margins showed a stronger performance of 11.9% compared to 10.4% in the same period last year. This was mainly from the extensive expansion of its intellectual business such as hotel management contract, food franchised, and the mix-use real estate businesses. Its return on equity reported at 13.4% from 12.3% in the same period last year, despite the increased capital from warrant exercise in this year. For its efficiency ratio, MINT s return on assets in 3Q08 reported at 6.5% increased from 5.5% compared to the same period last year. The debt collection date reduced to 13 days from 15 days however its current ratio declined from 1.07x to 0.84x due to its investment in Thai Express and the development of Anantara Phuket and St Regis projects. 5 5

Despite the general concerns on liquidity, MINT s financial ratio and its leverage has shown the healthiest time with interest debt to equity ratio of 0.69x compared to the previous year of 0.86x. Its interest coverage ratio also increased strongly to 9.14x from 6.50x as the increased operating cashflow from core business net profit and account receivables from its real-estate mixed-use projects. Management Review and Forward Looking Statement MINT s 3Q08 financial performance has showed another record quarter reporting a strong y-y growth of 25% reported Bt 4,119m revenues. Despite the low tourism season together with the unrest political situation in September, MINT s diversified sources of revenue proved its financial performance resiliency as its food business strongly recovered from last year. The Company s 3Q08 net profit of Bt 376m showed a slight increase compared to the previous year giving the larger amount of management income from Phuket Timeshare recorded in last year and the lower than expected hotel occupancy rate caused by the unrest situation in September. However, MINT s management believes its revenues and net profit are generally in-line with our full-year projection despite some interruptions from various unfavorable situations. The Company s 9 months operations showed a solid growth of 22% and 40% on total revenues and net profit, respectively. The key driven factors on revenues are the strong same-store-sales growth of its quick-servicerestaurant business and the strong Revpar growth of its hotel business. The new food outlet expansion together with stronger y-y same-store-sale growth showed the contrarian view compared with the global economic headwinds. MINT s domestic food business has continued its growth both improved same-store-sales growth and new outlet expansion due to strong retailer industry. Its newly acquired food brands (Thai Express and The Coffee Club) which are the leaders in their home-based countries in Singapore and Australia also showed a better-than-expected sales growth. Bottom-line, MINT s 9 month intact growth was resulted from the strong contribution from its hotel management contract, food franchised fees and the equity income from newly acquired food brands, and the real estate mix-use business. Earlier this year, inflation and cost structure seemed to be the most critical factor giving the skyrocketed prices of oil and commodity where it is now no longer an issue. The credit crisis and upcoming global recession has overwhelmed other economic or political fears and adversely affect business sentiments in general. This environmental change has confirmed our business diversification strategy in having two core businesses in food and hotel where the financial performance of the former driven by the domestic consumption and the latter by international economy. It is also confirming us in terms of expansion on intellectual property where the Company can conserve cash for its internal capital rather than bearing the increasing investment risks. Our long-term business strategy has been proved over the past 4 years in continuing 20% growth per annum with increasing ROIC. Our balance sheet has arrived to the new chapter showing the healthiest interest bearing DE in MINT s history with 0.69% net debt to equity as end of 3Q08. With the global recession fear and the credit crisis, we are taking more conservative investment strategy for both hotel and food business expansion. According to our pipeline expansion, all new investment will be fully financed by internal cashflow where our policy on net DE will be no more than 100%. Albeit the said global credit crisis and conventional liquidity crunch environment, MINT has issued it Bt 1bn 3-year debenture with a coupon rate of 5.3% on its A rating from TRIS. The success issuance confirmed on the Company s strengths and investors confidence of its future prospect. In the final quarter 2008, MINT s management has anticipated a stronger performance giving the coming high tourism season and the continued domestic retailer growth. In October, we have opened two new hotels including one investment and one pure managed hotel. The Anantara Phuket Hotel which all 83 units pool villas will become the flagship Anantara group of hotels. Our new pure managed hotel in Abu Dhabi named Desert Island Resort is also under Anantara management contract will also enhance MINT s hotel profitability looking forwards. Together with the first Anantara Semiyak Bali which was opened in April this year, we target to open another pure management hotel in Southern Beach of Krabi under brand Anantara Sikao by the end of this year. On our food business, MINT s food outlets have reached above 1,000 outlets in September thanks to the strong organic expansion and the successful acquisition made in early this year. We believe, the success food concepts of Thai Express and The Coffee Club will enhance MINT s franchised business in overseas market together with its existing brands. In addition, the Company s mix-use 6 6

development will not only enhance its profitability, but also the Company s operating cashflow. MINT s management strongly believes in our solid financial strengths and our organic business expansion. Its future investment of which highly capital intensive hotel projects including St, Regis Hotel & Residential will be fully financed by internal cashflow and working capital, where there is no cash requirement for the expansion through management contract. Signature... (Pratana Mongkolkul) Director 7 7