Company Presentation Aug 2015 Oaks Elan Darwin, Australia
FORWARD LOOKING STATEMENT Statements included or incorporated in these materials that use the words "believe", "anticipate", "estimate", "target", or "hope", or that otherwise relate to objectives, strategies, plans, intentions, beliefs or expectations or that have been constructed as statements as to future performance or events, are "forward-looking statements" within the meaning are not guarantees of future performance and involve risks and uncertainties that could cause actual results to differ materially from historical results or those anticipated at the time the forward-looking statements are made. MINT undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. MINT makes no representation whatsoever about the opinion or statements of any analyst or other third party. MINT does not monitor or control the content of third party opinions or statements and does not endorse or accept any responsibility for the content or the use of any such opinion or statement. Disclaimer 2
Agenda 1H15 Performance Recap & Recent Updates Hotel & Mixed-Use Business Restaurant Business Other Important Information Tivoli Lisboa, Portugal
1H15 Performance Recap & Recent Updates
CONTINUED GROWTH WITH DIVERSIFICATION MINT reported 1H15 net profit of THB 2.7 billion, a 32% increase y-y, primarily from the robust performance of hospitality business, together with net bargain purchase gain of THB 650 million from business acquisition of Sun International hotels in Africa in 1Q15. Excluding such gain, 1H15 net profit increased by 4% y-y. REVENUES THB Million 25,000 +12% y-y Excl extra gains +9% y-y 22,120 20,000 19,753 15,000 10,000 1H14 Hotel & Mixed-Use Restaurant Retail Trading 1H15 NET PROFIT THB Million 3,000 +32% y-y Excl Extra gains +4% y-y 2,698 2,500 2,037 1,500 1,000 1H14 Hotel & Mixed-Use Restaurant Retail Trading 1H15 1H15 Performance Recap 5
INTERNATIONAL PRESENCE With solid diversification strategy, MINT s presence was in 33 countries at the end of 2Q15 across its hospitality and restaurant businesses. REVENUE CONTRIBUTION 100% 75% 13% 35% 45% 51% International Hotel & Spa Restaurant 50% 25% 87% 65% 55% 49% Thailand Combination 0% 2008 2014 1H15 2019F MINT s Footprint 6
WHAT S NEW IN 2Q15 TO DATE MINT continues to invest in its future, poised for solid growth going forward. INVESTMENT IN OAKS ELAN DARWIN Investment Size AUD 57.1 million (THB 1,452 million) The Acquisition Oaks Elan Darwin is in the CBD of Darwin, the capital of Australia s Northern Territory 301-room hotel, comprising: 168 hotel rooms 133 apartment units, under management letting rights structure Timing Soft-opening of the property since Oct 2014 as Elan Soho Suites Closing of the transaction in August 2015 Official launch of the hotel as Oaks Elan Darwin on 1 Sept 2015 Investment Rationales Strategic move into the Northern Territory, Oaks new footprint in Australia Long-term potential of Northern Territory, which is a regional hub for mining, natural gas and port activities. International tourist arrivals have also increased by 10.4% in 2014. Attractive cash flow generation Recent Development 7
BRIGHTER PROSPECTS IN 2H15 AND BEYOND Acquisition Opportunies Residential Projects Renovation & New Rooms Anantara Vacation Club Singapore Overhaul Global Supply Chain Tivoli Further upside with the potential acquisition of the remaining 8 hotels, the operating platform of all 12 Tivoli hotels in Portugal, together with the brand Tivoli hotels in Portugal reported exceptional performance for 7M15, with EBITDA more than doubling y-y Anantara Residences Layan, Phuket 6 deposits received Construction of 4 units completed, with additional 8 to be completed by year-end Anantara Chiang Mai Serviced Suites 19 reservations with deposits to date Construction will be completed mid-2016 Maputo Mixed-Use Project To be completed by year-end 2015 Room Additions in Time for Strong High Season AVANI Riverside Bangkok to be completed by Dec 15 Newly renovated rooms of Anantara Siam Bangkok (1 st phase), Anantara Hua Hin and Anantara Dhigu, Maldives will be completed by 4Q15 Restructuring of AVC s Pricing Scheme Installment periods have been shortened, and members are encouraged to pay upfront This speeds up the cash received, reduces cancellation rate and bad debts Thai Express Project Renovation, new menu and product launch will be completed by 4Q15 Other Concepts Xin Wang to improve menu offering by 3Q15 Poulet will enhance operational excellence and menu offering by 4Q15 Head Office Singapore Hub will improve centralized productivity and cost efficiency Strengthening Restaurant Fundamentals With its own manufacturing facilities and global supply chain account which leverages on the scale of regional hubs, MINT is able to ensure quality consistency, inventory adequacy, R&D capabilities, promotional flexibility and cost initiatives. 2H15 and Beyond 8
Hotel & Mixed-Use Business Huvafen Fushi Maldives, Per AQUUM
FINANCIAL PERFORMANCE HOTEL & MIXED-USE 1H15 core revenue of hotel & mixed-use business (excluding gains from revaluations of investments in 1Q15 and 2Q14) grew by 16%, as a result of growth of owned hotels operations and real estate sales. 1H15 core EBITDA and net profit increased by 4% and 8% respectively, lower than the revenue growth, from the decline of the higher-margin hotel management business y-y. THB million Revenue EBITDA EBITDA Margin NPAT Net Margin 5,322 1,761 33.1% 1,003 18.8% 1Q14 4,083 4,505 892 21.8% 20.1%* 1,130 229 382 2Q14 25.1% 5,418 1,865 1,054 6,666 2,401 1,676 +18% y-y 4,806 +2% y-y 910 Flat y-y 5.6% 8.5% 19.5% 25.1% 4.8% 13.1% 16.6% 4.0%* 17.1%* 12.5%* 11.6%* 3Q14 34.4% 4Q14 36.0% 29.1%* 1Q15 229 Hotel Updates +22% y-y +20% y-y* +16% y-y* 11,472 +13% y-y* 18.9% 9,405 2,653 +25% y-y 3,311 28.2% 28.9% 27.5%* 24.6%* +43% y-y* +8% y-y* 1,906 2Q15 1,232 1H14 +4% y-y* +55% y-y 1H15 Key Highlights Owned hotels: 52% of 1H15 hotel & mixed-use revenues saw revenue growth of 43% y-y, as a result of system-wide 1H15 RevPar increase of 4% y-y (organic RevPar +13%), together with the addition of newly acquired hotels; Oaks: 23% of 1H15 hotel & mixed-use revenues reported revenue decline of 6% while RevPar declined by 15% in THB terms (Revenue increased by 8% while RevPar was flat in AUD terms); Management contracts: 5% of 1H15 hotel & mixed-use revenues reported decrease in revenue by 28%, to more normalized level as 1Q14 was an exceptional quarter for Maldives hotels, with the VIP guests. System-wide 1H15 RevPar increased by 15% (organic RevPar +8%); Real estate: 16% of 1H15 hotel & mixed-use revenues increased by 14% y-y because of recognition of the last unit of St. Regis Residences, together with increase in Anantara Vacation Club revenues of 9%. * Excludes gains from revaluation of investments in Sun International hotels of THB 650 million in 1Q15 and Serendib of THB 87 million (before tax) in 2Q14 10
HOTEL & MIXED-USE - INTERNATIONAL PRESENCE In recent years, MINT has implemented a solid diversification strategy. At the end of 2Q15, MINT operates hotels and spas under a combination of investment, joint-venture and management business models in 24 countries, with another 6 countries in the pipeline over the next three years. REVENUE CONTRIBUTION 100% 75% 50% 25% 0% 6% 44% 62% 63% 94% 56% 38% 37% 2008 2014 1H15 2019F International Thailand Investment Management Combination New Destinations in Pipeline Hubs Hotel Updates 11
SYSTEM-WIDE HOTEL OPERATIONS 2Q15 system-wide RevPar declined by 4% y-y. While occupancy improved y-y because of the recovery of Bangkok hotels, ADR declined primarily because of the weakening of the AUD against THB for Oaks, together with the addition of new AVANI hotels in Africa (Sun International transaction), Mozambique and Seychelles. Excluding new hotels and foreign exchange impact, organic RevPar of the entire portfolio increased by 3% y-y in 2Q15. NUMBER OF HOTEL ROOMS ADR No of Rooms 20,000 15,000 13,128 13,179 13,465 10,000 14,721 +27% y-y 16,872 16,774 MLR / Oaks Managed THB 8,000 6,000 6,968 5,884 5,321 6,266 Organic excl FX Impact -8% y-y 6,359-11% y-y 5,245 5,000 Joint-venture Owned 0 OCCUPANCY REVPAR 90% Organic +7% y-y Organic excl FX Impact +3% y-y 80% 70% 60% 67% 60% 66% 70% 70% +5% y-y 65% THB 5,000 3,000 4,673 3,546 3,486 4,409 4,431-4% y-y 3,409 50% 1,000 * Note: Hotel Statistics include Oaks Hotel & Resort Hotel Updates 12
OWNED-HOTELS OPERATIONS 1H15 HOSPITALITY REVENUE CONTRIBUTION No of Rooms 5,000 3,000 52% Ownedhotels Contribution of owned hotels increased y-y to 52% in 1H15, from additional revenues of newly acquired hotels. 2Q15 RevPar of owned hotels was up 10% y-y. Occupancy improved significantly because of the recovery of Bangkok hotels, while ADR was down because of the shift in weighting to more of the lower-rate properties, including hotels in Bangkok, Vietnam and Cambodia, together with relatively lower rates of new AVANI hotels in Africa. NUMBER OF HOTEL ROOMS 2,753 2,753 2,753 +AVANI Gaborone & AVANI Windhoek (Sun Hotels) 3,122 +Tivoli hotels +75% y-y 4,807 4,807 THB 10,000 8,000 6,000 8,581 6,301 ADR 5,717 7,227 Organic excl FX Impact -5% y-y 7,550-9% y-y 5,709 1,000 OCCUPANCY REVPAR 90% 80% 70% 60% 50% 64% 51% 55% 67% 72% Organic +13% y-y +11% y-y 62% THB THB 6,000 5,498 3,199 3,159 4,859 Organic excl FX Impact +18% y-y 5,460 +10% y-y 3,521 40% 0 Hotel Updates 13
OWNED-HOTELS PERFORMANCE BY GEOGRAPHY 1H15 HOSPITALITY REVENUE CONTRIBUTION 13% Bangkok hotels With the recovery of the tourist arrivals into Thailand, contribution of Bangkok hotels in 1H15 increased to 13% (7% of total MINT revenues). The increase in RevPar of hotels in Bangkok more than offset the decline of RevPar of overseas hotels. THB 6,000 4,814 4,407 2,280 1,796 47% 41% BANGKOK RevPar Growth (y-y) -40% -36% -27% +3% +78% +65% 5,191 5,178 4,681 4,065 4,720 3,568 2,236 2,963 69% 79% 63% 48% OVERSEAS RevPar THB Growth (y-y) +6% +12% -5% +8% -50% -39% THB 16,000 15,298 11,064 12,562 1 72% 10,981 8,987 61% 65% 55% 57% 7,703 8,597 55% 8,000 5,989 5,572 6,594 5,108 3,629 0 THB 10,000 8,000 6,000 0 THAILAND PROVINCES 8,506 7,402 8,614 6,403 6,455 5,673 6,030 5,438 68% 75% 75% 68% 58% 61% 5,024 3,844 3,472 3,301 % Occupancy ADR 0 RevPar 2Q15 KEY HIGHLIGHTS RevPar Growth (y-y) +3% +1% -4% -3% +1% +11% Bangkok: strong recovery to normalized level Thailand provinces: improved performance in 2Q15, primarily from hotels in Phuket, Samui and Golden Triangle Overseas: significantly lower RevPar in 2Q15, largely because of the addition of new AVANI hotels in Africa and adverse impact from decline in Russian tourists particularly on properties in Maldives and Sri Lanka. Hotel Updates 14
OAKS OPERATIONS 1H15 HOSPITALITY REVENUE CONTRIBUTION 23% Oaks No of Rooms 7,000 6,000 5,000 5,855 Oaks serviced-suites operation is the second largest segment in the hotel and mixed-use business, with 23% revenue contribution in 1H15. The y-y decline in contribution was primarily attributable to the weakening of the AUD y-y. Oaks continues to provide the hotel & mixed-use business with stable performance throughout the year, compared to hotel operations which is more seasonal. Although Oaks 2Q15 AUD RevPar was flat y-y, Oaks revenues in AUD increased by 8% y-y because of additional MLRs. NUMBER OF MANAGED ROOMS 5,906 6,045 6,223 6,330 +6% y-y 6,232 THB 6,000 0 4,966 170 ADR 4,727 4,651 4,848 156 157 173 4,309 168 THB -17% y-y 3,923 AUD +1% y-y 158 AUD 180 170 160 150 90% 80% 70% 60% 76% 72% OCCUPANCY 79% 77% 75% 73% THB 5,000 +1% y-y 3,777 3,000 1,000 0 129 3,388 112 REVPAR 3,692 3,715 124 132 3,245 126 THB -16% y-y 2,844 AUD -1% y-y 110 AUD 150 140 130 120 110 100 Hotel Updates 15
MANAGED-HOTELS OPERATIONS 1H15 HOSPITALITY REVENUE CONTRIBUTION 5% Management Contracts In 1H15, managed hotels contributed 5% of hotel & mixed-use revenues. System-wide RevPar of managed hotels portfolio increased by 15% y-y in 1H15, primarily from the ramping up of the relatively new hotels in China, together with the recovery of Bangkok hotels and the continued good performance of provincial hotels. As a result, 2Q15 revenue from management service increased by 59% y-y. No of Rooms 3,000 NUMBER OF HOTEL ROOMS +Essque Zalu Sanzibar (To be rebranded to PER AQUUM) +9% y-y +Banana Island Doha by Anantara +AVANI Seychelles Barbarons +Lewa Safari Camp & Kitich Camp (Cheli Peacock) 3,404 3,404 3,404 3,453 3,703 3,703 THB 10,000 8,000 6,000 7,537 6,719 ADR 5,459 7,141 7,424 Organic excl FX Impact -15% y-y -5% y-y 6,356 1,000 0 OCCUPANCY REVPAR 80% 70% 60% 50% 57% 50% 52% 63% 66% Organic +12% y-y +11% y-y 61% THB 5,000 3,000 1,000 4,264 3,351 2,824 4,517 4,910 Organic excl FX Impact +5% y-y +15% y-y 3,849 40% 0 Hotel Updates 16
HOTEL EXPANSION PIPELINE Expansion inside and outside Thailand will contribute to revenue & profit in coming years. HOTEL INVESTMENT MANAGEMENT CONTRACTS 2015F 2016F Tangalle, Sri Lanka* (150 rms) Royal Livingstone, Zambia* (173 rms) Bazaruto Island, Mozambique* Phase 2 (75 rms) Kalutara, Sri Lanka (143 rms) Gaborone, Botswana (196 rms) Windhoek, Namibia (173 rms) Victoria Falls, Zambia* (212 rms) Lesotho, Lesotho* (158 rms) Maseru, Lesotho* (105 rms) Royal Swazi, Swaziland* (149 rms) Ezulwini, Swaziland* (202 rms) Bangkok, Thailand (249 rms) Tivoli Sao Paulo Mofarrej, Brazil (220rms) Tivoli Ecoresort Praia do Forte, Brazil (287 rms) Tivoli Lisboa, Portugal (306 rms) Tivoli Marina Vilamoura, Portugal (383 rms) Tivoli Marina Portimao, Portugal (196 rms) Tivoli Carvoeiro, Portugal (293 rms) Niyama, Maldives* Phase 2 (48 rms) (Per AQUUM) Serengeti Pioneer Camp, Kenya* (12 rms) (Elewana) Tortilis Camp, Kenya* (18 rms) (Cheli & Peacock) Elsa Kopje Camp, Kenya* (11 rms) (Cheli & Peacock) Joys Camp, Kenya* (10 rms) (Cheli & Peacock) Elephant Pepper Camp, Kenya* (10 rms) (Cheli & Peacock) Elan Darwin, Australia (301 rms) Banana Island Doha, Qatar (117 rms) Guiyang, China (218 rms) Jabal Al Akhdar, Oman (115 rms) Al Baleed, Oman (136 rms) Barbarons, Seychelles (124 rms) Luang Prabang, Laos Abu Dhabi, (101 rms) UAE Qiandao Lake, China (99 rms) (120 rms) Nusa Dua, Dongguan, China (131 rms) Bali, Indonesia Shanghai, China (260 rms) (529 rms) Sifah, Oman (198 rms) Le Chaland, Mauritius (160 rms) Tozeur, Tunisia (93 rms) Lewa Safari Sanya, Camp, Kenya* China (Cheli & (122 rms) Peacock) Carlyle (13 rms) (79 rms) Kitich Camp, Radius Kenya* (80 rms) (Cheli & Peacock) Milton (6 rms) (185 rms) Jimbaran, Indonesia (180 rms) 2017F 2018F Total Malaysia (120 rms) * Note: Joint-ventured properties 26 Hotels / 4,200 Rooms 26 Hotels / 3,897 Rooms Hotel Updates Tozeur, Tunisia (93 rms) Chiang Mai, Tangier, Morocco (230 rms) Thailand (80 rms) Dubai Creek, UAE (290 rms) Al Madina A Zarqua, Oman (120 rms) 17
HOTEL EXPANSION PIPELINE MINT continues to implement Asset Right strategy, which is a combination of Asset Heavy (owned & JV) and Asset Light (management contracts & MLRs), depending on the circumstances and opportunities. The below figures are based on current signed pipeline while the finalization of on-going due-diligence and new opportunities that come along in the future will certainly add to the below growth figures. OWNED HOTELS MANAGED HOTELS No of Rooms 6,000 5,000 +95% 5,357 > 5,500 > 5,620 No of Rooms 7,000 6,000 +21% > 5,770 > 6,173 3,000 2,753 5,000 3,000 3,453 4,172 2014 2015F 2016F 2017F 2014 2015F 2016F 2017F JOINT VENTURE OAKS No of Rooms 3,000 1,275 +99% 2,533 > 2,608 > 2,608 No of Rooms 7,000 6,000 6,223 +9% 6,799 > 6,799 > 6,799 1,000 5,000 0 2014 2015F 2016F 2017F 2014 2015F 2016F 2017F Hotel Updates 18
REAL ESTATE BUSINESS ANANTARA VACATION CLUB 1H15 HOSPITALITY REVENUE CONTRIBUTION 16% Real Estates 751 Part of the real estate business, Anantara Vacation Club is growing to become another significant contributor to the hotel and mixed-use business. Number of members have seen impressive growth trajectory over the past three years, primarily driven by the three main markets China, Thailand and Singapore. The five-year plan calls for a total of 700 units of inventory across at least 10 destinations to accommodate the members growth. Although AVC sales grew by less than 5% y-y in 2Q15, net profit continued to grow by over 10%, as AVC s focus is on improvement of profitability. TOTAL NUMBER OF MEMBERS MEMBERS PRIMARILY IN ASIA Growth (y-y) +207% +67% +41% +34% No. of Members 6,000 0 2,309 3,857 5,431 6,223 2011 2012 2013 2014 2Q15 US, 1% Indonesia, 2% Japan, 2% Australia, 3% Malaysia, 9% Hong Kong, 11% Korea, 1% Others, 10% UAE, 1% Singapore, 11% Thailand, 13% China, 36% As at June 2015 No. of Units 800 600 400 200 0 INVENTORY TO ACCOMMODATE GROWING MEMBERS 25 46 6 Destinations: Queenstown Bali Sanya Samui Phuket Bangkok 106 119 129 10 Destinations 700 2011 2012 2013 2014 2Q15 2019F No. of Members 3,000 1,000 0 GROWTH TREND OF MEMBERS IN TOP THREE MARKETS 322 China Thailand Singapore 2,061 3,194 +111% +300% 1,156 +428% +19% +23% +596% +107% +36% +12% 2,686 3,702 +67% +6% +11% 2011 2012 2013 2014 2Q14 2Q15 Real Estates Updates 19
REAL ESTATE BUSINESS - RESIDENTIAL 1H15 HOSPITALITY REVENUE CONTRIBUTION 16% Real Estates To ensure the revenue stream from residential sales, MINT has prepared residential projects in the pipeline, to be launched in Phuket and Chiang Mai. Four units of The Residences by Anantara, Layan, Phuket are now complete and available for sale. Other residential projects will be selectively considered in various hotel destinations in order to increase returns of the overall project. THE RESIDENCES BY ANANTARA, LAYAN, PHUKET THE ESTATES SAMUI Situated on Layan beach, one of Phuket s most picturesque bays on west coast of Phuket, the project is one of the most significant new luxury development in Phuket. 15 uniquely designed pool villas Above a secluded cove of powderwhite sands and crystal-blue waters, The Estates Samui provide complete privacy and spectacular panoramic views with its own stretch of beach. Sold 79% Inventory 21% Up to 8 bedrooms, each with 21 metre private infinity pool 1,313 to 2,317 sq.m. of built-up area Launched in 2H15 ANANTARA CHIANG MAI SERVICED SUITES A 50% joint-venture with Natural Park Pcl., the project is in the city center of Chiang Mai, across from Anantara Chiang Mai Resort & Spa. 44 units in 7-storey condominium building 65 to 162 sq.m. (one to three bedrooms) Completion expected in 2016 TORRES RANI, MAPUTO A 49% joint-venture with Rani Investment, the project is 5 minutes from Maputo CBD. 187-key, 18-storey residential tower 20,926 sq.m., 21- storey office tower The project will be completed by the end of 2015 ST. REGIS RESIDENCES Real Estates Updates 20
Restaurant Business
FINANCIAL PERFORMANCE - RESTAURANT 1H15 revenues of the restaurant business increased by 4% y-y, attributable to the outlet expansion of 10%. However, 1H15 net profit declined by 2% y-y as margins of Singapore and Thailand hubs have been put under pressure in 2Q15. Key Thai Express outlets in Singapore have been temporarily closed for renovation, while Thailand hub has seen lower operating leverage from the soft same-store-sales growth as a result of an industry-wide slowdown in domestic consumption. THB million Revenue EBITDA EBITDA Margin NPAT 4,307 4,230 708 725 4,024 622 4,199 762 16.4% 17.1% 15.5% 18.1% 363 379 326 482 4,575 838 18.3% 431 +3% y-y 4,337-7% y-y 678 15.6% -22% y-y 296 8,537 1,433 +4% y-y 8,912 +6% y-y 1,515 16.8% 17.0% -2% y-y 742 727 Key Highlights 1H15 total-system-sales grew by 12.2%, mainly attributable to the outlet expansion of 10% y-y; Of all brands, Riverside, The Coffee Club and Burger King reported impressive total-systemsales growths of over 20% in 1H15; 1H15 same-store-sales was stable y-y. Samestore-sales growths of The Pizza Company, Burger King and Dairy Queen were offset by the soft performance of Swensen s, Ribs and Rumps, Riverside and Thai Express, primarily because of the challenging macro economic environment in Singapore and Thailand, and active outlet expansion of Riverside in China. 1H15 EBITDA increased by 6%, in line with the increase in revenues, primarily from the higher operating leverage in 1Q15 of Thailand hub. However, 1H15 net profit declined by 2% y-y because of the increase in depreciation from the opening of new outlets. Net Margin 8.4% 9.0% 8.1% 11.5% 1Q14 2Q14 3Q14 4Q14 9.4% 1Q15 6.8% 2Q15 8.7% 1H14 8.2% 1H15 Restaurants Updates 22
RESTAURANT INTERNATIONAL FOOTPRINT MINT operates four restaurant hubs: Thailand, Singapore, Australia and China. MINT s restaurant presence is now in 20 countries across the region, operating owned, franchised and a combination of both business models. MINT continues to look for opportunities to expand, especially in these existing markets that MINT operates. REVENUE CONTRIBUTION 100% 75% 50% 25% 19% 81% 33% 31% 67% 69% 49% 51% International Thailand 0% 2008 2014 1H15 2019F Owned Franchised Combination Hub Restaurants Updates 23
RESTAURANT PERFORMANCE 2Q15 total-system-sales of the restaurant business grew 11.1% y-y, primarily from the outlet expansion of 10%, mostly in Thailand, Australia and China. 2Q15 same-store-sales growth slipped into negative territory, attributable to the same-store-sales decline in Thailand, Singapore and China. SSS & TSS GROWTH RESTAURANT OUTLETS BY GEOGRAPHY 20% 15% 10% 9.4% 12.4% 13.9% 16.5% 17.9% 11.1% International Thailand 1,043 33% 67% 1,708 37% 63% +10% y-y 1,747 36% 64% 3,365 49% 51% 5% 0% -5% No. of Outlets 1.5% 1.2% 0.4% 0.6% -1.6% -1.8% 1,568 1,592 1,648 1,708 1,727 1,747 Same-Store-Sales Growth Total-System-Sales Growth 2008 2014 2Q15 2019F RESTAURANT OUTLETS BY OWNERSHIP Franchised 3,365 Owned +10% y-y 41% 1,708 1,747 1,043 50% 50% 38% 59% 82% 62% 50% 53% 50% 2008 2014 2Q15 2019F Restaurants Updates 24
THAILAND HUB 1H15 RESTAURANT REVENUE CONTRIBUTION Revenues from domestic operations still accounted for over two-thirds of total restaurant revenues in 1H15. 69% Thailand Thailand hub s performance in 2Q15 was soft, both in terms of revenues, margin and net profit, as a result of weak macro backdrop. 20% 15% 10% 5% 0% THAILAND S SSS & TSS GROWTH Thailand hub s same-store-sales was flat in 2Q15 y-y, primarily from the continued slow down of the domestic consumption. With consistent outlet expansion, Thailand hub continued to see total-system-sales growth of 8% in 2Q15. POISED FOR GROWTH Increased number of delivery units in crowded delivery zone to better serve delivery customers and increase takeaway sales. Strengthened leadership position in ice cream parlor business with product innovation and vertical integration in production of ice cream, toppings and inclusions. Introduced successful weekday special (Wednesday night), which resulted in 4.5% y-y increase in number of customers in June 2015 alone. Successfully launched premium Japanese matcha flavor soft serve ice cream, which resulted in docket increase of 5%. Continued to open new outlets in local-driven locations to capture more local customers. -5% Same-Store-Sales Growth Total-System-Sales Growth Restaurants Updates 25
SINGAPORE HUB 1H15 RESTAURANT REVENUE CONTRIBUTION 14% Singapore In the midst of challenging consumption environment and increased competition in Singapore, together with the decision to pause new outlet expansion and to close down some of the high-traffic outlets for renovation, Singapore hub reported a decline in both revenue and net profit in 2Q15. SINGAPORE S SSS & TSS GROWTH 2Q15 same-store-sales growth remained negative amidst economic slowdown and intense competition, with total-system-sales growth at the similar level because of the pause in outlet expansion and temporary closure of some key Thai Express outlets for renovation. 15% 10% 5% TIME FOR A REFRESH Amidst the economic slowdown in Singapore, Minor Food Group Singapore has taken the opportunity to do major refreshment of seven key Thai Express outlets, including new décor, ambiance and menus as well as service and quality improvement to enhance customers dining experience. Two outlets have completed their renovations and are now operational. The new outlets have been well-received. The project to renovate all of the seven outlets is expected to be completed by the end of the year. 0% -5% -10% -15% Same-Store-Sales Growth Total-System-Sales Growth Restaurants Updates 26
AUSTRALIA HUB 1H15 RESTAURANT REVENUE CONTRIBUTION 1% Australia Thailand Although Australia hub contributes only 1% to the restaurant business s revenues in 1H15, its contribution to net profit is much higher as the Australia hub s performance is recognized as share of profit from investments in joint venture under equity accounting. 30% AUSTRALIA S SSS & TSS GROWTH Australia hub reported flat same-store-sales growth in 2Q15 because of the soft performance of Ribs and Rumps. Total-system-sales grew by close to 20% because of organic outlet expansion, together with the addition of Veneziano Group acquired in 3Q14. STABLE GROWTH OPERATIONS Strengthened the leading position in the coffee industry by leveraging on roasting expertise and strong brand awareness in café restaurants. Upstream integration with the expansion into coffee roasting business ensures sustainable supply chain Diversification both in terms of geography and brands have afforded the Australia hub to be one of the most stable hubs of the restaurant group. 20% 10% -1% 0% Same-Store-Sales Growth Total-System-Sales Growth Restaurants Updates 27
CHINA HUB 1H15 RESTAURANT REVENUE CONTRIBUTION 15% China China hub continued to show improvement in its performance since the acquisition of Riverside at the end of 2012. MINT expects its China hub to yield a meaningful contribution in the future. CHINA S SSS & TSS GROWTH Same-store-sales of China operations showed consistent improvement over the past two quarters, attributable to good operations of Sizzler and better performance of all stores in Shanghai. Total-system-sales continued to report a strong growth of 25% in 1H15. Active outlet expansion of the Riverside brand since MINT s acquisition at the end of 2012 more than offset negative same-storesales growth effect. SUCCESSFUL EXECUTION OF GROWTH PLANS Riverside plans to launch the 10th year anniversary promotional and advertising campaign, as well as branding exercise which includes brand positioning and store and menu design changes. These initiatives are expected to help boost sales. Sizzler in China has implemented successful menu changes, which resulted in improvement in margins. 40% 20% 0% -20% Same-Store-Sales Growth Total-System-Sales Growth Restaurants Updates 28
Other Important Information
FINANCIAL PERFORMANCE RETAIL TRADING & CONTRACT MANUFACTURING 1H15 revenue of retail trading & contract manufacturing business declined by 4% y-y mainly because of the decline in revenue in 1Q15 as a result of the slowdown of the domestic economy. Net profit on the other hand increased by 5%, primarily because of the efficient cost control in 2Q15. THB million Revenue 1,001 810 889 999 923 Flat y-y 813 +16% y-y -4% y-y 1,811 1,736 Flat y-y Key Highlights 1H15 revenue from retail trading decreased by 3% y-y, because of the softening of domestic consumption which continued to affect industry-wide discretionary spending. The revenue decline was modestly compensated by the expansion of points of sale by 2% y-y; EBITDA EBITDA Margin NPAT 146 107 82 50 10.6% 6.2% 9.2% 14.6% 83 54 38 8 98 10.7% 50 58 7.1% +94% y-y 16 156 156 8.6% 9.0% +5% y-y 62 65 1H15 revenue from contract manufacturing decreased by 8% y-y, from delayed orders from NMT s key customers in 1Q15. Revenue from contract manufacturing increased by 10% in 2Q15 y-y; With efficient cost control, 1H15 EBITDA was flat while net profit increased by 5%. As a result, EBITDA margin and net profit margin improved to 9% and 3.8% respectively; Net Margin 5.4% 1.0% 4.3% 8.3% 1Q14 2Q14 3Q14 4Q14 5.4% 1Q15 1.9% 2Q15 3.4% 1H14 3.8% 1H15 Retail Trading Updates 30
RETAIL TRADING & CONTRACT MANUFACTURING 2Q15 total-system-sales of retail trading declined by 2.5% y-y, as the business unit took a more cautious approach in outlet expansion of only 2% y-y amidst the economic slowdown. Same-store-sales declined by 5.7% as sales of discretionary goods continued to be impacted by the slower-than-expected recovery of the domestic economy. SSS & TSS GROWTH SALES PER SQ. M. THB 10% 5% 0% -5% 3.0% -5.9% 6.0% 3.0% 4.0% -3.6% -3.4% 0.4% -2.2% -2.5% -5.7% 40,000 30,000 20,000 25,620 23,996 24,220 30,133 27,101 33,830-10% -10.0% -15% No. of Shops 278 281 288 297 298 10,000 287 No. of 278 281 288 297 298 287 Shops Same-Store-Sales Growth Total-System-Sales Growth Fashion & Cosmetic Sales per Sq. m. Retail Trading Updates 31
CAPEX & BALANCE SHEET STRENGTH In addition to committed CAPEX, MINT also set aside additional CAPEX for future acquisitions and new initiatives. Even with recent acquisitions, leverage ratio remains below the internal policy. With its solid balance sheet, MINT will be able to primarily use its internal cash flow and debt financing to fund its CAPEX requirements going forward. In addition, MINT and its senior debenture have A+ rating by TRIS. THB million 16,000 CAPEX PLANS COMMITTED & NEW OPPORTUNITIES X 6.0 5.0 X 1.4 1.2 1.0 LEVERAGE RATIOS 1.20x 1.10x Internal Policy 1 8,000-2014 2015F* 2016F 2017F 2018F 2019F Restaurant Hotel & Mixed-use Retail Trading Additional CAPEX (non-committed average per annum) for New Opportunity/Acquisition(s) EBITDA coverage on committed CAPEX * 2015 committed CAPEX includes Tivoli and Oaks Elan Darwin acquisition. 4.0 3.0 2.0 1.0-0.8 0.6 0.4 THB million 60,000 40,000 20,000 0 Interest Bearing Debt to Equity BACK-UP FINANCING Shareholders Equity 31,418 Debt 37,780 Outstanding Borrowing & Equity Net Interest Bearing Debt to Equity Note: Cash on hand as at end of 2Q15 is THB 3,266 million Equity* 7,981 Debt 26,610 Un-Utilized Facility * Incremental capital increase from MINT-W5 exercise, assuming 100% MINT-W5 conversion CAPEX & Balance Sheet Strength 32
IMPACT FROM FOREIGN EXCHANGE RATE As MINT s effort is to implement natural hedge where possible, the impact from foreign exchange rate is primarily the translation impact on its P&L. The major currencies for MINT are AUD, SGD, RMB and USD. Australian Dollar 1H15 MINT S REVENUE* BREAKDOWN BY CURRENCY Renminbi 12% of MINT s Revenue AUD/THB -13% 30.0 26.1 RMB 6% USD 5% Others 14% 6% of MINT s Revenue RMB/THB 0.3% 5.3 5.3 1H14 1H15 AUD 12% 1H14 1H15 Singapore Dollar 6% of MINT s Revenue SGD/THB -5% 25.8 24.4 SGD 6% US Dollar 5% of MINT s Revenue USD/THB 1% 32.6 33.0 1H14 1H15 * MINT s revenue excluded net bargain purchase gain from business acquisition in Sun International hotels in Africa Source: Bank of Thailand TH 57% 1H14 1H15 FX Impact 33
FIVE-YEAR ASPIRATIONS 30 hotels 2009 1,112 restaurants 292 retail shops & POS (14,275 Sqm) 2Q15 133 hotels 71 residences built to date 129 timeshare units 1,747 restaurants 287 retail shops & POS (23,314 Sqm) 2019F > 190 hotels > 400 residences built to date > 700 timeshare units > 3,300 restaurants > 360 retail shops & POS (> 37,000 Sqm) 4.4bn 2019F NPAT (THB) 1.4bn 2009 2014 Going Forward 34
MINT S FIVE-YEAR STRATEGY 2015-2019 Five-year strategy consists of the following three key pillars, with clear goals and measurements. 2019 Goals NPAT growth of 15-20% CAGR ROIC of >15% Growth Pillars Drive a Portfolio of Own Brands, With Additional Contribution From Selected International Brands Maximize Asset Value and Productivity Assetlight Model Mixeduse Initiatives Expand Through Strategic Investments & Acquisitions Measurements Total-system-sales growth of over 15% Revenues growth of over 10% Improvement of margins Revenues from overseas of over 40% Net profit from overseas of 50% Summary of Five-Year Plan 35