WRAP Melbourne Anantara Phuket Layan Company Company Presentation - Aug - Aug 2014 2014
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
SIFU Hong Kong Master Ribs in Singapore Agenda 1H14 Performance Recap & Recent Updates Restaurant Business Hotel & Mixed-Use Business Other Important Information
1H14 Performance Recap Royal Livingstone Hotel, Zambia Gaborone Sun Hotel & Casino, Botswana Lesotho Sun Hotel & Casino, Lesotho Kalahari Sands Hotel & Casino, Namibia
CONTINUED GROWTH WITH DIVERSIFICATION MINT REPORTED 1H14 NET PROFIT OF THB 2.0 BILLION, AN 11% INCREASE YoY, DEMONSTRATING THE BENEFIT OF MINT S DIVERSIFICATION AND INTERNATIONAL EXPANSION STRATEGY, AS STRONG PERFORMANCE OF INTERNATIONAL OPERATIONS MITIGATED THE IMPACT OF SLOWDOWN IN TOURIST ARRIVALS AND DOMESTIC CONSUMPTION IN THAILAND. NET PROFIT GROWTH WAS DUE TO BOTH HOSPITALITY AND RESTAURANT BUSINESSES, TOGETHER WITH THE GAIN ON FAIR VALUE ADJUSTMENT OF INVESTMENT IN SERENDIB IN SRI LANKA. REVENUES THB Million 20,000 +10% YoY 19,753 18,000 17,888 16,000 14,000 12,000 1H13 Hotel & Mixed-Use Restaurant Retail Trading 1H14 THB Million 2,200 2,000 1,800 1,600 1,400 1,838 NET PROFIT Excl one-time gain +7% YoY +11% YoY 2,037 1,200 1H13 Hotel & Mixed-Use Restaurant Retail Trading 1H14 1H14 Performance Recap 5
INTERNATIONAL PRESENCE WITH SOLID DIVERSIFICATION STRATEGY, MINT S PRESENCE IS NOW IN 33 COUNTRIES ACROSS ITS HOSPITALITY AND RESTAURANT BUSINESSES. REVENUE CONTRIBUTION 100% 75% 13% 32% 38% 45% International 50% 25% 87% 68% 62% 55% Thailand 0% 2008 2013 1H14 2018F Egypt Hotel Restaurant Combination MINT s Footprint 6
Restaurant Business Basil by ThaiExpress in Singapore
RECENT UPDATES RESTAURANT MINT CONTINUES TO INVEST IN ITS FUTURE, POISED FOR SOLID GROWTH GOING FORWARD. Invested 50% to operate BreadTalk s bakery operations in Thailand MINT s investment size: THB 103 million for the 50% investment BreadTalk Group s support: as brand owner, and provide technical know-how MINT s support: its established platform in Thailand, including supply chain management, property management, outlet expansion, franchising and legal support Invested 70% in Swensen s operations in India This resulted in conversion of the existing 4 outlets from franchised to 70%-owned outlets The existing franchisee, Devyani International, maintains the remaining 30% shareholding With the combination of BreadTalk s strong brand recognition and MFG s profound knowledge of Thailand together with its operational excellence and customer service, there is a vast growth potential for BreadTalk operation in Thailand over the next few years The plan is to actively grow Breadtalk bakery outlets from existing 23 outlets, initially with company-owned business model and later with franchised model The joint-venture is expected to be established by the end of September, after fulfilling the customary conditions precedent Opened the first franchised Coffee Club outlets in Bali & Malaysia The two outlets marked The Coffee Club s entrance into the countries. Restaurants Updates 8
RECENT UPDATES CONT D MINT CONTINUES TO INVEST IN ITS FUTURE, POISED FOR SOLID GROWTH GOING FORWARD. Launched two new concepts under Singapore Hub: Basil by ThaiExpress SIFU Hong Kong Master Ribs Launched Thai Cuisine Academy Partnership between three reputable parties: MINT S&P Syndicate Iron Chef Chumpon Jangprai The Academy will help strengthen the talent pool for restaurants under Minor Food Group, Minor Hotel Group, and others The courses range from one-month to 9-month courses, for both profession and non-professional individuals The school is located in the heart of Thonglor, and is able to graduate over 100 students and professional chefs per year The initiative is to respond to the quick change in consumer taste in Singapore and ultimately to increase customer count and overall sales Restaurants Updates 9
FINANCIAL PERFORMANCE - RESTAURANT 1H14 REVENUE OF THE RESTAURANT BUSINESS INCREASED BY 12% YoY, PRIMARILY FROM THE OUTLET EXPANSION OF 12%. 1H14 NET PROFIT GREW BY 4%, A SMALLER MAGNITUDE THAN REVENUE INCREASE MAINLY AS A RESULT OF CONTRACTION OF DOMESTIC CONSUMPTION WHICH LED TO LOWER OPERATING LEVERAGE AMIDST POLITICAL EVENTS IN 1Q14. NONETHELESS, THAILAND HUB, THE BIGGEST CONTRIBUTER TO THE RESTAURANT BUSINESS, SAW A TURNAROUND IN SAME-STORE-SALES GROWTH AND NORMALIZED MARGINS IN 2Q14. THB million Revenue EBITDA EBITDA Margin NPAT Net Margin 3,878 716 18.5% 409 10.5% 1Q13 3,725 3,742 634 648 17.0% 17.3% 308 323 8.3% 2Q13 8.6% 3Q13 3,997 761 19.0% 461 11.5% 4Q13 4,307 4,230 708 725 16.4% 363 379 8.4% 1Q14 +14% YoY +14% YoY 17.1% +23% YoY 9.0% 2Q14 7,603 1,350 +12% YoY 8,537 +6% YoY 1,433 17.8% 16.8% +4% YoY 716 742 9.4% 1H13 8.7% 1H14 Key Highlights 1H14 total-system-sales exhibited strong growth of 10.8%, primarily from the outlet expansion of 12% YoY; Riverside, Burger King and Ribs & Rumps reported total-system-sales growth of over 20% in 1H14; 1H14 same-store-sales was flat YoY. Same-storesales in 2Q14 was 1.5%, as Thailand Hub witnessed a turnaround amidst improving consumer confidence and consumption, together with new marketing initiatives; Australia Hub reported positive same-store-sales growth, with net profit rising 9% YoY in 1H14; Although Singapore Hub reported negative samestore-sales growth in 1H14, its net profit increased significantly by 37% YoY; China Hub saw improved operational performance YoY in 1H14, driven primarily by strong performance of Riverside; EBITDA & net profit margins declined in 1H14 YoY, attributable to lower operating leverage of Thailand Hub from the negative same-store-sales growth during 1Q14. Nonetheless, EBITDA and net profit margins saw improving trend in 2Q14. Restaurants Updates 10
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. 100% 75% 50% 25% 19% 81% REVENUE CONTRIBUTION 30% 33% 70% 67% 44% 56% International Thailand 0% 2008 2013 1H14 2018F Egypt Owned Franchised Combination Hub Restaurants Updates 11
RESTAURANT PERFORMANCE 2Q14 TOTAL-SYSTEM-SALES OF THE RESTAURANT BUSINESS CONTINUED TO GROW BY 12.4%, DUE TO SAME-STORE-SALES GROWTH OF 1.5% AND OUTLET EXPANSION OF 12% YoY. 2Q14 SAME-STORE-SALES GROWTH BOUNCED BACK TO POSITIVE TERRITORY UPON PROACTIVE MARKETING INITIATIVES, TOGETHER WITH IMPROVING SENTIMENT AND DOMESTIC CONSUMPTION IN THAILAND. SSS & TSS GROWTH RESTAURANT OUTLETS BY GEOGRAPHY 20% 15% 10% 14.6% 13.9% 13.2% 14.3% 9.4% 12.4% International Thailand 676 7% 93% 1,544 35% 65% +12% YoY 1,592 35% 65% 2,625 47% 53% 5% 0% -5% No. of Outlets 4.1% 1.1% 0.0% 0.9% 1.5% -1.8% 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 1,406 1,419 1,464 1,544 1,568 1,592 Same-Store-Sales Growth Total-System-Sales Growth 2007 2013 2Q14 2018F RESTAURANT OUTLETS BY OWNERSHIP Franchised 2,625 Owned +12% YoY 46% 1,544 1,592 47% 48% 676 18% 54% 82% 53% 52% 2007 2013 2Q14 2018F Restaurants Updates 12
THAILAND HUB 1H14 REVENUE CONTRIBUTION 33% Others 67% Thailand THAILAND REMAINS THE MAJOR REVENUE AND PROFIT CONTRIBUTOR TO THE RESTAURANT BUSINESS. INNOVATIVE PRODUCTS AND SERVICES, PROACTIVE MARKETING INITIATIVES, AS WELL AS EFFICIENT COST CONTROL PROGRAMS HAVE AFFORDED MINT S RESTAURANT BUSINESS TO REMAIN IN THE FOREFRONT OF THE CASUAL DINING RESTAURANT INDUSTRY IN THE COUNTRY. THAILAND S SSS & TSS GROWTH Same-store-sales growth rebounded in 2Q14 as a result of more proactive marketing initiatives, as well as improving domestic consumption as the political climate become more stable. Consequently, with continued outlet expansion, total-system-sales growth also surged to 15% in 2Q14. POISED FOR GROWTH MINT continues to launch innovative products and services to maintain the leadership position in the market. Swensen s new Sundae The Pizza Company s Dairy Queen s Blizzard Pizza Roll 20% 15% Restructuring of The Pizza Company Burger King s Breakfast Menu Sizzler s new Salad Bar 10% 5% 0% -5% 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 Same-Store-Sales Growth Total-System-Sales Growth In addition to organic outlet expansion, Minor Food Group always looks for opportunities to add new concepts. JV with Breadtalk in Thailand Launched Noodle Bar & Thai Express in Phuket Restaurants Updates 13
SINGAPORE HUB 1H14 REVENUE CONTRIBUTION 18% Singapore 82% Others SINGAPORE HUB IS THE SECOND BIGGEST REVENUE AND NET PROFIT CONTRIBUTOR OF THE RESTAURANT BUSINESS. ITS NET PROFIT HAS SEEN IMPRESSIVE GROWTH DESPITE NEGATIVE SAME-STORE-SALES GROWTH IN 1Q14 & 2Q14 BECAUSE OF THE EFFECTIVE COST CONTROL. MINT S SINGAPORE OPERATIONS CONTINUE TO GROW NOT ONLY THROUGH ORGANIC OPERATIONS AND NEW INNOVATIVE CONCEPTS, BUT ALSO THROUGH EXPANSION OF ITS BRANDS IN OTHER COUNTRIES. SINGAPORE S SSS & TSS GROWTH Same-store-sales growth was negative in 1H14 because of: Further expansion of Poulet, the Singapore Hub s sub-brand, in its second year of operation, and Changing consumer taste which resulted in intensified competition. Total-system-sales was positive as a result of outlet expansions, which more than offset the negative same-store-sales growth effect. PROFITABILITY TO REMAIN STRONG The Singapore Hub s net profit continued to report impressive growth as a result of effective cost control, despite the negative same-store-sales growth. 2Q Net Profit +44% 1H Net Profit +37% 20% 15% 10% 5% 0% -5% -10% 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 2Q13 2Q14 1H13 1H14 The Singapore Hub continues to ensure profitability of the unit through: Continuous change of its menus; Launch of new concepts: 2012: Poulet 2013: Penang Street 2014: Basil by ThaiExpress & SIFU Hong Kong Bunnery; Effective cost control. Poulet Penang Street SIFU Same-Store-Sales Growth Total-System-Sales Growth Restaurants Updates 14
AUSTRALIA HUB 1H14 REVENUE CONTRIBUTION 1% Australia 99% Others ALTHOUGH AUSTRALIA HUB CONTRIBUTES ONLY 1% TO THE RESTAURANT BUSINESS S REVENUES, IT CONTRIBUTES 11% TO THE NET PROFIT, AS THE AUSTRALIA HUB S PERFORMANCE IS RECOGNIZED AS SHARE OF PROFIT OF INVESTMENTS IN JOINT VENTURE UNDER EQUITY ACCOUNTING. AUSTRALIA HUB IS THEREFORE THE THIRD LARGEST PROFIT CONTRIBUTOR TO THE RESTAURANT BUSINESS. AUSTRALIA S SSS & TSS GROWTH EXPANSION INTACT 15% 10% 5% Australia provides stable same-store-sales and total-system-sales growth for the group, primarily attributable to the established Coffee Club operations. In addition to growing The Coffee Club in its established home markets, Australia and New Zealand, the Australia Hub is looking to expand the brand in other parts of the region: 2009 2010 2011 2012 2013 2014 Thailand New Caledonia & China Egypt Maldives Malaysia & Indonesia An effort to turn around Ribs & Rumps is another main focus of the Australia Hub: Many new marketing initiatives are being launched, including Buy one get one free offer in April / May, and new Express Lunch Menu; 0% 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 Same-Store-Sales Growth Total-System-Sales Growth Back of house process is being reviewed to focus on increasing productivity, reduction of costs and expenses, and improving speed of service. Restaurants Updates 15
CHINA HUB 1H14 REVENUE CONTRIBUTION 12% China 88% Others CHINA HUB CONTRIBUTES 12% OF RESTAURANT REVENUES, WHILE IN TERMS OF NET PROFIT, ITS OPERATIONS HAVE TURNED AROUND AND WAS BREAK-EVEN IN 2013. WITH RIVERSIDE AS THE SUCCESSFUL LOCAL CONCEPT AND SIZZLER S UNIQUE POSITION AS A WESTERN STEAK HOUSE CHAIN, TOGETHER WITH VAST POTENTIAL IN THE CONSUMPTION SPACE IN THE COUNTRY, MINT AIMS FOR CHINA TO BECOME A MEANINGFUL CONTRIBUTOR IN THE FUTURE. CHINA S SSS & TSS GROWTH GROWTH PLANS IN PLACE Total-system-sales growth of China operations continued to be strong. Active outlet expansion of the Riverside brand since MINT s acquisition at the end of 2012 more than offset negative same-storesales growth effect. 40% The objective going forward is to expand outlets under Riverside and Sizzler brands in China, after having closed down 15 The Pizza Company outlets during 2008-2014. 27 24 Historical Outlet Expansion in China 21 22 35 42 42 55 30% 20% 2008 2009 2010 2011 2012 2013 1H14 2014F 10% 0% -10% 1Q14 Same-Store-Sales Growth 2Q14 Total-System-Sales Growth While short-term goal is to increase the scale of operations by increasing the number of outlets, the medium to long-term goal is to improve profitability of the operations to be comparable to other hubs. Restaurants Updates 16
Hotel & Mixed-Use Business Radisson Blu Hotel, Maputo
RECENT UPDATES HOTEL & MIXED-USE MINT CONTINUES TO INVEST IN ITS FUTURE, POISED FOR SOLID GROWTH GOING FORWARD. Full-opening of Anantara Phuket Layan in July 2014 Launch of Oaks WRAP on Southbank in Melbourne in May 2014 Acquisition of 49% of Rani Minor Holding II to own hotel & mixed-use project in Maputo, Mozambique The project consists of: Radisson Blu Hotel: 154-key hotel (currently in operation) Residential Tower: 187-key, 19,466 net sq.m., 18-storey tower, majority of which is for rental (under construction, expected to complete by the end of 2015) Office Tower: 20,926 net sq.m., 21-storey tower (under construction, expected to complete by the end of 2015) The project is within 5 minutes of Maputo CBD, facing the renowned Maputo Bay and fronting Avenida Da Marginal, one of the city s main arterial raods The project is MINT s fifth property in Mozambique, all of which are under collaboration with Rani Investments. This completes MINT s expansion in the country, from the north all the way to the south Matemo Medjumbe Pemba Residential Tower Office Tower Radisson Blu Hotel Investment size is USD 101 million for the 49% stake. Anantara Bazaruto Maputo Project Hotel Updates 18
RECENT UPDATES HOTEL & MIXED-USE CONT D MINT CONTINUES TO INVEST IN ITS FUTURE, POISED FOR SOLID GROWTH GOING FORWARD. Acquisition of 8 hotels with over 1,300 rooms in 5 countries in Africa from Sun International The investment size is R663.6 million (USD 62.4 million) Investment rationales: The investment allows MINT to expand its footprint in the southern part of Africa and will complement the hotel business s current East Africa safari and beach offerings through the Elewana and the Mozambican properties. MINT can benefit from Africa s growth potential, both in terms of economic growth and the untapped travel and tourism The scale allows MINT to develop a platform with operational efficiency within the region The 7 hotels, with the exception of Royal Livingstone Hotel, will be rebranded into AVANI. The renowned Royal Livingstone Hotel will be marketed through Anantara s distribution channels The transaction is expected to close in 4Q14 Zambia (50%) Royal Livingstone Hotel Zambezi Sun Resorts Namibia Zambia Botswana Kenya Tanzania Mozambique Botswana (64%) Gaborone Sun Hotel & Casino Swaziland (40.5%) Royal Swazi Spa Valley Ezulwini Sun (Lugogo Sun) Namibia (80%) Kalahari Sands Hotel & Casino Lesotho Swaziland Lesotho (37.5%) Lesotho Sun Hotel & Casino Maseru Sun * Note: the percentage depicts MINT s effective shareholdings in the properties Hotel Updates 19
FINANCIAL PERFORMANCE HOTEL & MIXED-USE 1H14 REVENUE OF HOTEL & MIXED-USE BUSINESS GREW BY 11%, PRIMARILY AS A RESULT OF GROWTH OF MANAGEMENT CONTRACT, OAKS, OWNED HOTELS AND ANANTARA VACATION CLUB. 1H14 NET PROFIT INCREASED BY 18%, LED BY HIGHER PROFITABILITY OF OWNED HOTELS IN 2Q14 AND ANANTARA VACATION CLUB ON THE BACK OF HIGHER OPERATING LEVERAGE AND EFFECTIVE COST CONTROL, TOGETHER WITH AN INCREASE IN CONTRIBUTION FROM HIGHER-MARGIN MANAGEMENT CONTRACT BUSINESS. THB million Revenue EBITDA EBITDA Margin NPAT Net Margin 4,794 1,727 3,690 665 36.0% 18.0% 945 19.7% 1Q13 98 2.7% 2Q13 4,312 967 22.4% 354 8.2% 3Q13 5,181 5,322 1,847 1,761 35.7% 1,053 1,003 20.3% 4Q13 33.1% 18.8% 1Q14 +11% YoY 4,083 +34% YoY 892 21.8% +134% YoY 229 5.6% 2Q14 8,484 2,392 +11% YoY 9,406 +11% YoY 2,653 28.2% 28.2% 1,043 12.3% 1H13 +18% YoY 1,232 13.1% 1H14 Key Highlights Owned hotels: 42% of 1H14 hotel and mixed-use revenues saw revenue growth of 1% although system-wide 1H14 RevPar dropped by 5% YoY (organic RevPar -3%); Oaks: 28% of 1H14 hotel and mixed-use revenues reported 1H14 revenue growth of 15% while RevPar declined by 2%, from a slight drop in occupancy; Management contracts: 7% of 1H14 hotel and mixeduse revenues reported increase in 1H14 revenue by 185%, from the outstanding performance of the Maldives hotels, increase in number of rooms by 56% YoY, and system-wide 1H14 RevPar increase of 49% (organic RevPar increase of 16%); Real estate: 17% of 1H14 hotel and mixed-use revenues saw flat 1H14 revenues YoY, as increase in revenues from Anantara Vacation Club offset the decline of revenues from residential sales; Net profit exhibited growth at a higher rate than revenues as a result of higher operating leverage and effective cost savings in 2Q14, together with the onetime gain on fair value adjustment of investment in Serendib in Sri Lanka of THB 69 million (after tax); Excluding the one-time fair value adjustment, net profit increased by 12%. Hotel Updates 20
HOTEL & MIXED-USE - INTERNATIONAL PRESENCE IN RECENT YEARS, MINT HAS IMPLEMENTED A SOLID DIVERSIFICATION STRATEGY. TODAY, MINT OPERATES HOTELS AND SPAS IN COMBINATION OF INVESTMENT, JOINT-VENTURE AND MANAGEMENT BUSINESS MODELS IN 23 COUNTRIES, WITH ANOTHER SIX COUNTRIES IN THE PIPELINE OVER THE NEXT THREE YEARS. 100% 75% 50% 25% 6% 94% REVENUE CONTRIBUTION 40% 60% 51% 54% 49% 46% International Thailand 0% 2008 2013 1H14 2018F Egypt Investment Management Combination New Destinations in Pipeline Hub Hotel Updates 21
SYSTEM-WIDE HOTEL OPERATIONS 2Q14 SYSTEM-WIDE REVPAR INCREASED BY 10% YoY DESPITE THE IMPACT OF DOMESTIC POLITICAL EVENTS. EXCLUDING BANGKOK HOTELS, SYSTEM-WIDE REVPAR ROSE BY A HIGHER MAGNITUDE OF 19%. HOTELS IN THAILAND S MAJOR TOURIST DESTINATIONS OUTSIDE OF BANGKOK CONTINUED TO SEE GROWTH IN REVPAR, WHILE OVERSEAS HOTELS, THE MAJORITY OF WHICH ARE ANANTARA HOTELS, WITNESSED EVEN STRONGER PERFORMANCE WITH REVPAR INCREASING BY OVER 50% YoY. NUMBER OF HOTEL ROOMS ADR No of Rooms 15,000 12,000 10,529 10,624 9,000 6,000 3,000 11,740 12,723 13,128 +24% YoY 13,179 MLR / Oaks Managed Joint-venture Owned THB 8,000 6,000 4,000 5,937 4,998 5,105 6,098 Organic excl FX Impact +5% YoY 7,012 +20% YoY 6,004 0 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 2,000 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 OCCUPANCY REVPAR 90% Organic -4% YoY THB THB Organic excl FX Impact -1% YoY 80% 70% 73% 66% 69% 71% 67% -5% YoY 5,000 4,000 4,358 3,280 3,537 4,355 4,707 +10% YoY 3,618 60% 60% 3,000 2,000 50% 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 1,000 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 * Note: Hotel Statistics include Oaks Hotel & Resort Hotel Updates 22
OWNED-HOTELS OPERATIONS 1H14 REVENUE CONTRIBUTION 42% 58% Ownedhotels Other hotels & mixed-use OWNED HOTELS REMAINED A MAJOR REVENUE CONTRIBUTOR IN 1H14 WITH 42% CONTRIBUTION OF HOTEL & MIXED-USE REVENUES. ALTHOUGH THE POLITICAL INSTABILITY IN THAILAND PUT PRESSURE ON OVERALL OWNED HOTELS OCCUPANCY, PARTICULARLY THAT OF BANGKOK HOTELS, MINT WAS ABLE TO RAISE RATES BY 12% ON AVERAGE, RESULTING IN REVPAR DECLINE OF MERELY 7% YoY. DESPITE THE DECLINE IN REVPAR, WITH ADDITION OF NEW HOTEL ROOMS, REVENUES OF OWNED HOTEL HELD UP WELL. NUMBER OF HOTEL ROOMS ADR No of Rooms 3,000 2,500 2,000 + Hoi An + Quy Nhon 2,494 - Anantara Bophut Samui (reno) +Anantara Ankor Cambodia 2,388 2,427 +Anantara Bophut +Grand Hotel +Anantara Layan Phuket +15% YoY 2,676 2,753 2,753 THB 10,000 8,000 6,000 7,275 5,650 5,388 6,957 Organic excl FX Impact +10% YoY 8,570 +12% YoY 6,301 1,500 4,000 1,000 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 2,000 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 OCCUPANCY REVPAR 90% 80% 70% 60% 78% 61% 66% 69% 64% Organic -10% YoY -10% YoY 51% THB THB 6,000 4,000 5,687 3,446 3,553 4,784 Organic excl FX Impact -7% YoY 5,497-7% YoY 3,199 50% 2,000 40% 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 0 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 Hotel Updates 23
OWNED-HOTELS PERFORMANCE BY GEOGRAPHY 1H14 REVENUE CONTRIBUTION 10% Bangkok hotels 90% Other hotels & mixed-use IN 1H14, BANGKOK HOTELS ACCOUNT FOR ONLY 10% OF TOTAL HOTEL & MIXED-USE REVENUES (5% OF TOTAL MINT REVENUES). SYSTEM-WIDE REVPAR OF OWNED HOTELS OUTSIDE OF BANGKOK CONTINUED TO GROW AT THE RATE OF 4% IN 2Q14, PRIMARILY AS A RESULT OF BETTER PERFORMANCE AND CHANGE IN HOTEL MIX TOWARDS HIGHER-REVPAR HOTELS OF OVERSEAS PORTFOLIO. DESPITE THE POLITICAL UNCERTAINTY, THAILAND PROVINCIAL HOTELS CONTINUED TO SEE REVPAR GROWTH OF 1%. OVERALL EXCL BANGKOK THAILAND PROVINCES THB RevPar +4% YoY THB RevPar +1% YoY 12,000 9,000 6,000 3,000 10,067 9,0426,977 7,518 8,348 77% 75% 6,474 6,135 68% 7,131 64% 5,655 60% 57% 3,900 3,900 4,056 100% 80% 60% 40% 10,000 8,000 6,000 4,000 2,000 8,490 7,8736,190 7,367 6,403 79% 5,433 70% 75% 6,030 5,535 5,160 62% 63% 58% 3,451 3,438 3,472 100% 80% 60% 40% 0 1Q13 2Q13 2Q13 4Q13 1Q14 2Q14 20% 0 1Q13 2Q13 2Q13 4Q13 1Q14 2Q14 20% BANGKOK OVERSEAS THB 5,000 4,000 3,000 2,000 1,000 4,772 80% 3,800 RevPar -36% YoY 4,501 4,917 4,423 4,814 4,407 69% 70% 62% 3,458 3,064 2,795 2,280 1,796 47% 41% 80% 60% 40% 20% THB 16,000 12,000 8,000 4,000 14,676 10,396 71% 10,040 53% 11,746 65% 61% 8,340 5,356 5,380 7,145 RevPar +12% YoY 15,289 11,058 80% 72% 10,981 60% 55% 5,989 40% 20% 0 1Q13 2Q13 2Q13 4Q13 1Q14 2Q14 0% 0 1Q13 2Q13 2Q13 4Q13 1Q14 2Q14 0% % Occupancy ADR RevPar Hotel Updates 24
OAKS OPERATIONS 1H14 REVENUE CONTRIBUTION 27% 28% 73% 72% Oaks Other hotels & mixed-use OAKS SERVICED-SUITES OPERATIONS PROVIDE THE HOTEL AND MIXED-USE BUSINESS WITH STABLE PERFORMANCE THROUGHOUT THE YEAR, COMPARED TO HOTEL BUSINESS WHICH IS MORE SEASONAL. ALTHOUGH OAK S REVPAR IN 2Q14 SLIGHTLY DECLINED YoY, ITS REVENUES GREW BY 15% MAINLY FROM ADDITIONAL MLR CONTRACTS WHICH BROUGHT IN 11% MORE ROOMS YoY. NUMBER OF MANAGED ROOMS ADR No of Rooms 6,000 5,000 4,000 3,000 +11% YoY 5,897 5,855 5,906 5,576 5,176 5,323 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 THB 6,000 4,000 2,000 0 4,898 158 4,635 4,644 157 161 4,957 4,966 169 170 THB +2% YoY 4,727 AUD Flat YoY 156 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 AUD 180 170 160 150 OCCUPANCY REVPAR 90% 80% 70% 78% 75% 79% 79% 76% -3% YoY 72% THB 5,000 4,000 3,000 2,000 1,000 3,825 124 3,498 118 3,654 127 3,923 3,777 133 129 THB -3%YoY 3,388 AUD -5% YoY 112 AUD 150 140 130 120 110 60% 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 0 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 100 Hotel Updates 25
MANAGED-HOTELS OPERATIONS 1H14 REVENUE CONTRIBUTION 93% Other hotels & mixed-use 7% Management contract IN 1H14, CONTRIBUTION OF MANAGED HOTELS INCREASED TO 7% OF HOTEL & MIXED-USE REVENUES FROM 3% IN 1H13. SYSTEM-WIDE REVPAR OF MANAGED HOTELS PORTFOLIO IN 2Q14 INCREASED BY 60% YoY PRIMARILY FROM THE OUTSTANDING PERFORMANCE OF MALDIVES HOTELS, TOGETHER WITH IMPROVEMENT OF OTHER EXISTING HOTELS AND ADDITION OF NEW HOTELS, PARTICULARLY UNDER PER AQUUM BRAND, WHICH COMMANDS HIGH REVPAR. AS A RESULT, 2Q14 REVENUE FROM MANAGEMENT SERVICES INCREASED BY 88% YoY. NUMBER OF HOTEL ROOMS ADR No of Rooms 4,000 3,000 2,000 1,000 0 + Anantara Xisuangbanna 2,126 2,180 + Per AQUUM Huvafenfushi, Desert Palm, Niyama + Avani Atrium Bangkok + Anantara Al Yamm 2,946 + Anantara Chiang Mai, Al Sahel, The Palm Dubai - Per AQUUM Niyama + Anantara Emei +56% YoY 3,254 3,404 3,404 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 THB 10,000 8,000 6,000 4,000 2,000 0 5,228 4,405 5,483 6,506 Organic excl FX Impact +20% YoY 7,726 +64% YoY 7,234 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 OCCUPANCY REVPAR 80% Organic -1% YoY Organic excl FX Impact +17% YoY 70% 60% 50% 60% 51% 55% 62% 57% -1% YoY 50% THB 5,000 4,000 3,000 2,000 1,000 3,128 2,254 3,011 4,066 4,382 +60% YoY 3,613 40% 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 0 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 Hotel Updates 26
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 OAKS No of Rooms 4,000 3,500 3,000 2,676 +3% +21% +7% 2,753 3,343 3,592 No of Rooms 7,000 6,000 5,000 4,000 5,906 +5% +8% +3% 6,177 6,643 6,843 2,500 3,000 2,000 2013 2014F 2015F 2016F 2,000 2013 2014F 2015F 2016F JOINT VENTURE MANAGED HOTELS No of Rooms 3,000 2,500 2,000 1,500 1,000 500 0 +49% +92% - 2,555 2,555 1,331 896 2013 2014F 2015F 2016F No of Rooms +12% +26% +40% 7,000 6,000 5,000 4,000 3,000 2,000 3,254 3,645 4,586 6,414 2013 2014F 2015F 2016F Hotel Updates 27
HOTEL EXPANSION PIPELINE EXPANSION INSIDE AND OUTSIDE THAILAND WILL CONTRIBUTE TO REVENUE & PROFIT IN COMING YEARS. HOTEL INVESTMENT MANAGEMENT CONTRACTS Others 2014F Layan, Phuket (77 rms) Medjumbe, Mozambique* (12 rms) Matemo, Mozambique* (23 rms) Pemba, Mozambique* (184 rms) Niyama, Maldives* Phase 2 (45 rms) (Per Aquum) Amboseli Camp, Kenya* (16 rms) (Elewana) The Radisson Blu, Maputo, Mozambique* (154 rms) Emei, China (150 rms) Doha, Qatar (117 rms) Barbarons, Seychelles (124 rms) Sanya, China (122 rms) Pinnacle (40 rms) Rivermarque (149 rms) WRAP (73 rms) 2015F Kalutara, Sri Lanka (141 rms) Tangalle, Sri Lanka* (150 rms) Bazaruto Island, Mozambique* Phase 2 (75 rms) Ambalangoda, Sri Lanka (80 rms) Gaborone Sun, Botswana (196 rms) Kalahari Sands, Namibia (173 rms) Zambezi Sun, Zambia* (212 rms) Lesotho Sun, Lesotho* (158 rms) Maseru Sun, Lesotho* (105 rms) Royal Swazi, Swaziland* (149 rms) Ezulwini Sun, Swaziland* (202 rms) Royal Livingstone, Zambia* (173 rms) Qiandao Lake, China (120 rms) Baoting, China (130 rms) Guiyang, China (218 rms) Salalah, Oman (136 rms) Al Akhdar, Oman (123 rms) Luang Prabang, Laos (115 rms) Qasr Al Sarab, UAE (99 rms) Radius (89 rms) Milton (298 rms) Carlyle (79 rms) 2016F Bangkok (249 rms) Chongqing, China (150 rms) Dongguan, China (120 rms) Mhinghang, China (300 rms) Mahabalipuram, India (130 rms) Udaipur, India (70 rms) Wayanad, India (95 rms) La Chaland, Mauritius (160 rms) Al Madina, Oman (120 rms) Tozeur, Tunisia (93 rms) Nusa Dua, Bali, Indonesia (590 rms) Jimbaran, Indonesia (200 rms) Total * Note: Joint-ventured properties 20 Hotels / 2,574 Rooms 28 Hotels / 4,210 Rooms Hotel Updates 28
REAL ESTATE BUSINESS ANANTARA VACATION CLUB 1H14 REVENUE CONTRIBUTION 83% Other hotels & mixed-use 17% Real estates PART OF THE REAL ESTATE BUSINESS, ANANTARA VACATION CLUB, WHICH LEVERAGES ON THE ANANTARA BRAND, IS GROWING TO BECOME ANOTHER SIGNIFICANT CONTRIBUTOR TO HOTEL AND MIXED-USE BUSINESS. SALES CONTINUED TO GROW BY 28% IN 2Q14 AND 50% IN 1H14 YoY. PLANNED PIPELINE OF INVENTORIES No. of Units 500 10 Destinations 500 Shanghai 400 300 Bangkok Sanya 200 100 0 106 106 46 22 25 2010 2011 2012 2013 2Q14 2018F Phuket Samui AVC MEMBERS Current Sales Galleries Bali USA 1% Indonesia 2% Japan 2% Australia 3% UK 1% Others 12% China 29% Current AVC Resorts Malaysia 9% Queenstown Hong Kong 12% Singapore 13% Thailand 16% As at Jun 2014 Real Estates Updates 29
REAL ESTATE BUSINESS - RESIDENTIAL 1H14 REVENUE CONTRIBUTION 83% Other hotels & mixed-use 17% Real estates NEXT RESIDENTIAL PROJECT IN THE PIPELINE IS THE RESIDENCES BY ANANTARA, PHUKET, TO BE LAUNCHED IN 2H14. MINT HAS ALSO ENTERED INTO A PARTNERSHIP TO DEVELOP SERVICE SUITES ADJACENT TO ANANTARA CHIANG MAI, AND WILL ADD ADDITIONAL RESIDENTIAL CLUB SUITES IN PHUKET. ADDITIONAL RESIDENTIAL PROJECTS ADJACENT TO ANY OF THE HOTEL PROPERTIES ARE BEING CONSIDERED TO ENSURE CORE PIPELINE OF MINT S REAL ESTATE BUSINESS, INCLUDING ONE IN TANGALLE, SRI LANKA. ESTATES SAMUI ST. REGIS RESIDENCES Inventory 29% Inventory 8% Sold 71% Sold 92% THE RESIDENCES BY ANANTARA, LAYAN, PHUKET Situated on Layan beach on the preferred west coast of Phuket. Each of the 15 individually designed residences benefits from one of Phuket s most picturesque bays, and represents the most significant new luxury development in Phuket. 15 uniquely designed pool villas Up to 8 bedrooms, each with 21 metre private infinity pool 1,313 to 2,317 sq.m. of built-up area Due to be launched in 2H14 Real Estates Updates 30
Other Important Information
FINANCIAL PERFORMANCE RETAIL TRADING & CONTRACT MANUFACTURING 1H14 REVENUE OF RETAIL TRADING & CONTRACT MANUFACTURING INCREASED BY 1% YoY FROM BETTER PERFORMANCE OF RETAIL TRADING BUSINESS. NET PROFIT AND NET PROFIT MARGIN WERE PRESSURED LARGELY BY THE DECREASED DOMESTIC CONSUMPTION, PARTICULARLY DISCRETIONARY SPENDING, IN LIGHT OF THAILAND S POLITICAL UNCERTAINTY. THB million Revenue EBITDA 965 107 836 64 900 915 76 90 1,001 107-3% YoY 810-23% YoY 50 +1% YoY 1,801 1,811-9% YoY 172 156 Key Highlights 1H14 revenue from retail trading increased by 4% YoY, despite the softening of domestic consumption which affected industry-wide discretionary spending. The revenue increase was primarily attributable to the expansion of points of sale by 14% YoY; 1H14 revenue from contract manufacturing decreased by 6% YoY, from delayed orders from NMT s key customers amidst contraction of domestic consumption; EBITDA Margin NPAT 11.1% 56 7.7% 8.5% 23 30 9.8% 43 10.6% 54 6.2% -65% YoY 8 9.5% 8.6% 79-21% YoY 62 EBITDA and EBITDA margin, together with net profit and net profit margin, declined in 1H14 because of the adverse impact of national politics, which took its toll on profitability of domestic discretionary consumer sector. Net Margin 5.8% 1Q13 2.8% 2Q13 3.3% 3Q13 4.7% 4Q13 5.4% 1Q14 1.0% 2Q14 4.4% 1H13 3.4% 1H14 Retail Trading Updates 32
RETAIL TRADING & CONTRACT MANUFACTURING 2Q14 TOTAL-SYSTEM-SALES OF RETAIL TRADING GREW BY 6% AS A RESULT OF OUTLET EXPANSION OF 14% YoY. ALTHOUGH SAME-STORE- SALES GROWTH CONTINUED TO BE NEGATIVE IN 2Q14 AS SALES OF DISCRETIONARY GOODS HAVE BEEN IMPACTED BY THE INDUSTRY-WIDE SLOWDOWN, THE TREND IS IMPROVING. SIMILARLY, 2Q14 SALES PER SQM. ALSO DECLINED YoY. SSS & TSS GROWTH SALES PER SQ. M. 40% THB 40,000 23.0% 20% 16.0% 30,000 28,931 12.2% 1.0% 8.0% 3.3% 3.0% 6.0% 24,787 25,443 25,387 25,620 23,996 0% 20,000-4.0% -2.3% -10.0% -5.9% -20% 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 10,000 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 No. of Shops 240 247 256 276 278 No. of 281 240 247 256 276 278 281 Shops Same-Store-Sales Growth Total-System-Sales Growth Fashion & Cosmetic Sales per Sq.m. Retail Trading Updates 33
CAPEX & BALANCE SHEET STRENGTH IN ADDITION TO COMMITTED CAPEX, MINT ALSO SET ASIDE ADDITIONAL CAPEX FOR FUTURE ACQUISITIONS AND NEW INITIATIVES. LEVERAGE RATIO REMAINS WELL BELOW THE INTERNAL POLICY. WITH ITS SOLID BALANCE SHEET, MINT WILL BE ABLE TO PRIMARILY USE ITS INTERNAL CASHFLOW AND DEBT FINANCING TO FUND ITS CAPEX REQUIREMENTS GOING FORWARD. TRIS RATING HAS UPGRADED MINT AND ITS SENIOR DEBENTURE RATINGS TO A+, FROM A IN APRIL 2014. CAPEX PLANS COMMITTED & NEW OPPORTUNITIES LEVERAGE RATIOS THB million X X 10,000 8.0 1.4 1.2 Internal Policy 8,000 6.0 1.0 0.8 1.00x 0.87x 6,000 0.6 4,000 4.0 0.4 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 Interest Bearing Debt to Equity Net Interest Bearing Debt to Equity 2,000 2.0 BACK-UP FINANCING THB million - 2013 2014F 2015F 2016F 2017F 2018F Restaurant Hotel & Mixed-use Retail Trading - 60,000 50,000 40,000 Shareholders Equity Additional CAPEX (non-committed average per annum) for New Opportunity/Acquisition(s) EBITDA coverage on committed CAPEX * Note that 2014F CAPEX is according to the original 5-year plan and does not take into account new acquisitions during the year 30,000 20,000 10,000 0 Debt Outstanding Borrowing & Equity Debt Un-Utilized Facility CAPEX & Balance Sheet Strength 34
FIVE-YEAR ASPIRATIONS 2007 22 hotels 676 restaurants 316 retail shops & POS (14,524 Sqm) 2Q14 109 hotels 67 residences built to date 106 timeshare units 1,592 restaurants 281 retail shops & POS (22,415 Sqm) 2018F > 160 hotels > 200 residences built to date > 500 timeshare units > 2,600 restaurants > 350 retail shops & POS (>30,000 sqm) 4.1bn 2018F NPAT (THB) 1.6bn 2007 2013 Going Forward 35
MINT S FIVE-YEAR STRATEGY 2014-2018 FIVE-YEAR STRATEGY CONSISTS OF THE FOLLOWING THREE KEY PILLARS, WITH CLEAR GOALS AND MEASUREMENTS. 2018 Goals NPAT growth of ~15-20% CAGR ROIC of >16% Growth Pillars Drive Profitable Portfolio of Own Brands (with Additional Contribution from Selected International Brands) Maximize Asset Value and Productivity Assetlight Model Mixeduse Initiatives Expand Internationally 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 36
Appendix Riverside in China
FINANCIAL PERFORMANCE MINT MINT REPORTED 1H14 REVENUE INCREASE OF 10% YoY. THE REVENUE GROWTH WAS ATTRIBUTABLE TO HOTEL & MIXED-USE AND RESTAURANT BUSINESSES, TOGETHER WITH THE GAIN ON FAIR VALUE ADJUSTMENT OF INVESTMENT IN SERENDIB OF THB 87 MILLION BEFORE TAX (THB 69 MILLION AFTER TAX). EBITDA AND NET PROFIT GREW BY SIMILAR RATE PARTLY AS A RESULT OF EFFICIENT COST CONTROL. THB million 9,636 10,094 10,630 8,954 8,252 Revenue +11% YoY +10% YoY Retail Trading 19,753 9% 17,888 9,123 Hotel & Mixed-use 48% Restaurant 43% EBITDA 2,550 1,364 1,691 2,699 2,575 +22% YoY 1,667 3,914 +8% YoY 4,242 Hotel & Mixed-use 62% Retail Trading 4% Restaurant 34% EBITDA Margin 26.5% 1,409 16.5% 18.9% 26.7% 1,556 24.2% 1,420 18.3% +44% YoY 21.9% 21.5% +11% YoY 2,037 1,838 Retail Trading 3% Restaurant 36% NPAT 429 707 617 Hotel & Mixed-use 61% Net Margin 14.6% 5.2% 7.9% 15.4% 1Q13 2Q13 3Q13 4Q13 13.4% 1Q14 6.8% 2Q14 10.3% 1H13 10.3% 1H14 Retail Trading Hotel & Mixed-Use Restaurant Overall Performance 38
EFFECTIVE MANAGEMENT OF FOOD COSTS FOOD AND PAPER COSTS AS A PERCENTAGE OF SALES HAS TRENDED DOWN OVER THE PAST FIVE YEARS AS A RESULT OF CONTINUED EFFECTIVE COST MANAGEMENT PROGRAM. % OF FOOD & PAPER COST TO SALES 36% 35.9% 35% 34.9% 35.2% 35.2% 34.5% 34% 34.1% 33.9% 34.0% 33% 33.3% 33.0% 33.2% 33.2% 33.0% 33.1% 32% 32.7% 32.0% 31.7% 31.5% 32.0% 31% 31.8% 31.7% 31.5% 30.9% 30.7% 31.0% 31.0% 30% 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 Note: Food and paper costs as a percentage of sales rose in first quarter of every year as a result of Buy-one-get-one-free promotional campaign launched in March of every year to celebrate the anniversary of The Pizza Company Strategies Fixed Long-Term Contract Prices Pro-Active Inventory Management Menu-Mix Re-Engineering Supply Chain Management Maximization of FTA Benefit Restaurants Updates 39
RESTAURANT PERFORMANCE Brand SSS (%) TSS (%) 2Q14 2Q13 1H14 1H13 2Q14 2Q13 1H14 1H13 The Pizza Company 4.6% -10.3% -3.7% -2.6% 13.2% -7.1% 3.0% 0.7% Swensen s 5.0% 6.8% 2.3% 8.1% 11.2% 12.7% 8.1% 14.0% Sizzler 4.1% 1.2% 3.3% 1.8% 14.1% 6.3% 14.1% 4.6% Dairy Queen 0.9% 1.5% -0.5% 0.9% 17.4% 19.8% 16.0% 18.7% Burger King -4.4% 8.7% -1.7% 9.1% 21.7% 15.4% 25.0% 14.0% The Coffee Club 3.0% 3.2% 2.4% 3.2% 9.5% 11.9% 9.7% 11.2% Ribs & Rumps -5.5% -7.9% -4.6% -7.3% 33.1% 21.6% 27.0% 16.8% Riverside -12.0% N/A -7.4% N/A 16.9% N/A 28.7% N/A Thai Express -7.9% 8.0% -5.8% 6.8% 6.3% 17.1% 9.5% 13.3% Average 1.5% 1.1% -0.2% 2.6% 12.4% 13.9% 10.8% 13.8% Average Thailand 3.7% -1.2% -0.3% 2.2% 15.0% 5.9% 10.4% 8.5% Restaurants Updates 40
RESTAURANT OUTLETS - 1H14 Brand No. of outlets No. of outlets Equity Franchise Thailand International Total The Pizza Company 195 120 269 46 315 Swensen s 132 173 278 27 305 Sizzler 52-43 9 52 Dairy Queen 250 128 378-378 Burger King 37-35 2 37 The Coffee Club 27 333 14 346 360 Ribs & Rumbs 8 5-13 13 Thai Express 70 13 2 81 83 Riverside 32 - - 32 32 Others 17-17 - 17 Total 820 772 1,036 556 1,592 Restaurants Updates 41
CONTINUED & STRENGTHENING PARTNERSHIP WITH S&P S&P OPERATES A CHAIN OF RESTAURANTS AND BAKERY SHOPS WITH OVER 450 OUTLETS IN 8 COUNTRIES PRODUCING AND DISTRIBUTING FOOD AND BAKERY PRODUCTS UNDER THE S&P BRAND. SINCE 3Q11, S&P S PERFORMANCE HAS BEEN RECOGNIZED THROUGH EQUITY ACCOUNTING METHOD. S&P S 1H14 MARGINS HAVE BEEN PRESSURED FROM INCREASED PREMISE EXPENSES AND DEPRECIATION WHICH RESULTED FROM NUMEROUS OUTLETS OPENED IN 2H13. Sila-on & Riva Families 43% SHAREHOLDING STRUCTURE MINT 31% THB million Revenue 4,761 5,340 5,941 +7% YoY 6,653 7,094 3,198 +4% YoY 3,328 As of 15 Jan 2014 Others 26% MINT S INVESTMENT IN S&P EBITDA 674 817 963 1,197-9% YoY 1,092 444-11% YoY 397 THB million 3,000 2,500 2,000 1,500 1,000 500 0-500 Investment Cost Unrealized gain (loss) Gain from investment reclassification % shareholding 26.3% 22.9% 19.0% 20.8% 1,805 1,054 31.3% 31.3% 31.3% 2,151 1,054 2,151 2,151 4.8% 744 617 55 356 61 313 46 562 683 751 267 487 1,097 (131) 2006 2007 2008 2009 2010 2011 2012 2013 40% 30% 20% 10% 0% -10% EBITDA Margin NPAT Net Margin 14.2% 15.3% 16.2% 383 454 293 6.2% 7.2% 7.6% 2009 2010 2011 18.0% 708 10.6% 2012 15.4% -12% YoY 626 8.8% 2013 13.9% 11.9% -25% YoY 245 183 7.7% 5.5% 1H13 1H14 S&P 42
INVESTMENT IN BREADTALK MINT CURRENTLY HOLDS 11% STAKE IN BREADTALK. TOTAL INVESTMENT AMOUNT IS SGD 22.1 MILLION, WITH AVERAGE COST PER SHARE OF SGD 0.7155. APART FROM UNREALIZED CAPITAL GAIN, MINT IS NOW ENTITLED TO DIVIDEND FROM BREADTALK GOING FORWARD. BASIC PROFILE REVENUE CONTRIBUTION A premier lifestyle brand in the region, headquartered in Singapore. Breadtalk was founded in 2000 and was listed on SGX in 2003. 737 bakery outlets 58 food atria 41 restaurants Hong Kong 10% China 32% Rest of World 8% Revenues (SGD Million) 247 303 Singapore 50% 366 Bakery 51% FINANCIAL PERFORMANCE 2009-2013 CAGR 21% 537 447 247 Food Atrium 26% Restaurant 23% * As at 2013 +14% YoY 280 15 Countries Staff of over 7,000 China (57 cities), Singapore, Indonesia, Philippines, Thailand, Hong Kong, Malaysia, India, Vietnam, Kuwait, Bahrain, Sri Lanka, Jordan, Oman and Taiwan Profit before tax (SGD Million) 16 17 17 2009-2013 CAGR 10% 2009 2010 2011 2012 2013 19 22-6% YoY 5.3 5.0 1H13 1H14 Breadtalk 43
HOTEL PERFORMANCE BY OWNERSHIP 2Q14 Systemwide Hotel Occupancy (%) ARR (Bt/night) RevPar (Bt/night) 2Q14 2Q13 Chg 2Q14 2Q13 %Chg 2Q14 2Q13 Chg Owned 51% 61% -10% 6,301 5,650 12% 3,199 3,446-7% Joi nt Venture 51% 52% -1% 17,428 11,895 47% 8,964 6,178 45% Ma na ged 50% 51% -1% 7,234 4,405 64% 3,613 2,254 60% MLR 72% 75% -4% 4,727 4,635 2% 3,388 3,498-3% Avera ge (i ncl. Oa ks) 60% 66% -5% 6,004 4,998 20% 3,618 3,280 10% Avera ge (excl. Oa ks) 50% 56% -6% 7,578 5,464 39% 3,818 3,071 24% Avg - Tha i l a nd 48% 62% -15% 4,594 4,479 3% 2,183 2,784-22% Avg - Overseas (i ncl. Oa ks) 66% 67% -1% 6,462 5,220 24% 4,265 3,508 22% Avg - Overseas (excl. Oa ks) 54% 47% 8% 11,182 7,568 48% 6,073 3,531 72% Organic Hotel Occupancy (%) ARR (Bt/night) RevPar (Bt/night) 2Q14 2Q13 Chg 2Q14 2Q13 %Chg 2Q14 2Q13 Chg Owned 51% 61% -10% 6,348 5,650 12% 3,258 3,446-5% Joi nt Venture 52% 52% 0% 15,764 11,895 33% 8,120 6,178 31% Ma na ged 50% 51% -1% 5,420 4,405 23% 2,701 2,254 20% MLR 72% 75% -4% 4,727 4,635 2% 3,388 3,498-3% Avera ge (i ncl. Oa ks) 62% 66% -4% 5,396 4,999 8% 3,344 3,280 2% Avera ge (excl. Oa ks) 51% 56% -6% 6,498 5,464 19% 3,293 3,071 7% #DIV/0! Avg - Tha i l a nd 50% 62% -12% 4,916 4,479 10% 2,453 2,784-12% Avg - Overseas (i ncl. Oa ks) 67% 67% 0% 5,537 5,220 6% 3,696 3,508 5% Avg - Overseas (excl. Oa ks) 52% 47% 5% 8,905 7,568 18% 4,623 3,531 31% Hotel Updates 44
HOTEL PERFORMANCE BY OWNERSHIP 1H14 Systemwide Hotel Occupancy (%) ARR (Bt/night) RevPar (Bt/night) 1H14 1H13 Chg 1H14 1H13 %Chg 1H14 1H13 Chg Owned 57% 70% -12% 7,557 6,562 15% 4,332 4,566-5% Joi nt Venture 53% 54% -1% 21,387 15,232 40% 11,356 8,221 38% Ma na ged 53% 55% -2% 7,493 4,843 55% 3,988 2,685 49% MLR 74% 77% -3% 4,847 4,769 2% 3,578 3,662-2% Avera ge (i ncl. Oa ks) 64% 70% -6% 6,527 5,494 19% 4,152 3,819 9% Avera ge (excl. Oa ks) 55% 63% -8% 8,462 6,345 33% 4,643 3,968 17% Avg - Tha i l a nd 54% 70% -16% 5,252 5,136 2% 2,843 3,608-21% Avg - Overseas (i ncl. Oa ks) 68% 69% -1% 6,989 5,663 23% 4,746 3,917 21% Avg - Overseas (excl. Oa ks) 56% 50% 6% 12,751 9,154 39% 7,126 4,563 56% Organic Hotel Occupancy (%) ARR (Bt/night) RevPar (Bt/night) 1H14 1H13 Chg 1H14 1H13 %Chg 1H14 1H13 Chg Owned 58% 70% -11% 7,625 6,562 16% 4,436 4,566-3% Joi nt Venture 55% 54% 1% 19,693 15,232 29% 10,832 8,221 32% Ma na ged 53% 55% -3% 5,956 4,843 23% 3,127 2,685 16% MLR 74% 77% -3% 4,847 4,769 2% 3,578 3,662-2% Avera ge (i ncl. Oa ks) 65% 70% -4% 5,974 5,494 9% 3,899 3,819 2% Avera ge (excl. Oa ks) 56% 63% -7% 7,682 6,345 21% 4,266 3,969 7% Avg - Tha i l a nd 56% 70% -15% 5,745 5,137 12% 3,199 3,608-11% Avg - Overseas (i ncl. Oa ks) 69% 69% 0% 6,049 5,663 7% 4,184 3,917 7% Avg - Overseas (excl. Oa ks) 55% 50% 5% 10,941 9,154 18% 5,995 4,563 31% Hotel Updates 45
MINT S HOTEL PORTFOLIO MINT S COMPOSITION OF HOTEL ROOMS ARE EXPECTED TO CHANGE OVER THE NEXT FIVE YEARS. MINT WILL FOCUS ON THE EXPANSION OF OUR OWN BRANDS, ANANTARA, OAKS AND AVANI, MORE EXPONENTIALLY THROUGH ASSET LIGHT MODEL (MANAGEMENT CONTRACTS), WITH GEOGRAPHICAL FOCUS OUTSIDE OF THAILAND. BY BRAND BY OWNERSHIP BY LOCATION No of rooms 20,000 19,404 No of rooms 20,000 19,404 No of rooms 20,000 19,404 18,000 6% 18,000 18,000 16,000 16,000 16,000 14,000 12,000 13,179 6% 37% 14,000 12,000 13,179 68% 14,000 12,000 13,179 79% 10,000 8,000 47% 19% 10,000 8,000 71% 10,000 8,000 71% 6,000 4,000 2,000-11% 32% 2,169 28% 6% 19% 20% 55% 4% 3% 4% 3% 2005 1H14 2018F 6,000 4,000 2,000-13% 2,169 8% 8% 92% 21% 19% 2005 1H14 2018F 6,000 4,000 2,000-2,169 13% 9% 8% 56% 16% 12% 36% 2005 1H14 2018F Others Oaks Managed International Avani Anantara Joint Venture Outside Bangkok Four Seasons Marriott Own Equity Bangkok Hotel Updates 46
TOURIST ARRIVAL TO THAILAND HOTEL INDUSTRY OUTLOOK IS EXPECTED TO REMAIN STRONG ON THE BACK OF INCREASING TOURIST ARRIVAL. TOURIST ARRIVALS TO THAILAND YEARLY TREND Million 30 Tourist Arrival % Change 25 20 15 10 5 30% 20% 10% 0% 0 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014F 2015F -10% Million 3.0 2.5 2.0 1.5 1.0 0.5 TOURIST ARRIVALS TO THAILAND MONTHLY TREND 80% 60% 40% 20% 0% -20% 0.0 Jan-10 Apr-10 Jul-10 Oct-10 Jan-11 Apr-11 Jul-11 Oct-11 Jan-12 Apr-12 Jul-12 Oct-12 Jan-13 Apr-13 Jul-13 Oct-13 Jan-14 Apr-14 Source: Tourism Authority of Thailand and Bank of Thailand -40% Hotel Updates 47
Bangkok Coup Airport Closure Political Unrest Rajprasong Riot QUICK RECOVERY OF THAI TOURISM ENSURES LONG-TERM POSITIVE OUTLOOK FOR MINT S HOTELS HISTORICAL CHALLENGES IMPOSE ONLY SHORT-LIVED IMPACT ON THAI TOURISM. NUMBER OF TOURIST ARRIVALS REBOUNDED WITHIN A FEW MONTHS AFTER EACH CHALLENGE SUBSIDED. TOURIST ARRIVALS TO THAILAND MONTHLY TREND Million 1,800 1,600 SARS Outbreak in 2003 Bangkok Coup in 2006 Political Turmoil during 2008-2010 % Chg y-y 80% 1,400 60% 1,200 1,000 800 40% 20% 600 0% 400 200-20% 0 Jan-03 Apr-03 Jul-03 Oct-03 Jan-06 Apr-06 Jul-06 Oct-06 Jul-08 Oct-08 Jan-09 Apr-09 Jul-09 Oct-09 Jan-10 Apr-10 Jul-10-40% GOING FORWARD, MINT EXPECTS TO SEE STRONG GROWTH IN ROOMS SOLD ACROSS ALL MARKETS THAT IT OPERATES, BEING DRIVEN BY: Increasing Influx of New Emerging Feeder Markets Rebounding Conventional Markets on the Back of Firmer Global Economic Recovery Additional New Customers Who Welcome Our Brands as We Open More Hotels Overseas Hotels Updates 48
MINT S FEEDER MARKETS MINT CONTINUES TO SEE IMPROVEMENTS ACROSS OF ITS FEEDER MARKETS, WITH AN 18% YoY INCREASE IN 1H14 OVERALL ROOMNIGHTS COMPARED TO DECREASE IN THAILAND S TOURIST ARRIVALS OF 10% YoY. MINT S 1H14 FEEDER MARKETS No of room nights 200,000 China +31% Japan -26% Singapore -9% -3% UK +58% Germany +16% Russia +35% 28% 1H13 1H14 150,000 UAE +59% 100,000 50,000-2% -6% India +48% 52% 20% 105% 21% 0 Thailand East Asia Europe The Americas South Asia Oceania Middle East Africa & Others * Note: MINT s feeder market excludes Oaks Oceania, 5% South Asia, 4% The Americas, 8% MINT S 1H14 FEEDER MARKETS Europe, 33% Middle East, 14% Africa & Others, 1% Thailand, 8% East Asia, 27% No of tourists 2,400 2,000 1,600 1,200 800 400 0 THAILAND S TOP 5 1H14 FEEDER MARKETS -20% 1H13 1H14 9% -21% 16% -13% China Russia Japan Laos Korea Hotel Updates 49
STRENGTHENING OF HOTEL S NON-TRADITIONAL MARKETS ALTHOUGH CHINA AND RUSSIA TOGETHER REPRESENTED ONLY 14% OF MINT S TOTAL FEEDER MARKETS BASED ON ROOM NIGHTS IN 2013, THE YIELDS THEY GENERATED WERE RELATIVELY MUCH HIGHER AS THEY MOSTLY STAYED AT HIGHER-ROOM-RATE HOTELS, E.G. IN MALDIVES AND PHUKET. MINT S 2013 FEEDER MARKETS China 10% Russia 4% Average ADR: Bt 6,098 Others Average ADR*: Bt 12,807 86% Average ADR*: Bt 20,983 Others 57% Maldives Hotels 21% Four Seasons Group 16% St. Regis 3% Anantara & JW Marriott in Phuket 3% Others 34% St. Regis 1% Four Seasons Group 3% Anantara & JW Marriott in Phuket 28% Maldives Hotels 34% * The pie charts include total room nights of MINT hotel portfolio (excluding Oaks), while average daily rates of China and R ussia markets are calculated from Maldives hotels, Anantara Phuket, JW Marriott Phuket, Four Seasons group and St. Regis (excluding others) Hotels Updates 50