COMPANY PRESENTATION - August 2021 - nhow Brussels Bloom - SET
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nhow Brussels Bloom COMPANY PRESENTATION – August 2021
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.
2
AGENDA 2Q21 in Review Minor Hotels Minor Food Minor Lifestyle Corporate Information Response to COVID-19 Business Outlook
The Milton Brisbane 2Q21 IN REVIEW
2Q21 Key Highlights
Signs of recovery in 2Q21 Longer term positive Continued discipline Medium to long term plans
amidst short-term volatility outlook reiterated response to COVID-19 post-COVID
MINT’s core loss improved both Vaccination is being distributed Cost and CAPEX control remained Minor Hotels will continue to be
y-y and q-q to THB 3.4 billion, globally, with over 4.45 billion in tact to minimize cash outflows flexible in hotel openings amidst
with the performance turning shots administered in 180 and reduce breakeven point fluid situation. Expansion will be
profitable in June 2021 countries (30% has received at through asset light business model
least one dose) Various liabilities management in order to preserve cash in the
Minor Food continued to be initiatives were completed ahead near to medium term
profitable in 2Q21 for 4 Europe’s acceleration of fully of schedule at both MINT and
consecutive quarters vaccination rate to over 60% NHH level Minor Food will adapt its sales
today (with 70% target at end- strategy swiftly across various
Minor Hotels’ improved Aug) has allowed for reopenings Two asset rotation transactions distribution channels as situation
performance was driven largely and increasing business activities successfully executed in June & evolves, and will selectively
by European portfolio, whose July 2021 expand profitable outlets,
EBITDA turned positive in 2Q21 Other destinations will follow especially in China
Europe as vaccination rates Consequently, monthly free cash
Management letting rights increase flow turned positive to THB 0.9 Longer term, both Minor Hotels
continued to report positive billion per month in 2Q21, while and Minor Food will respond to
EBITDA Thailand’s Phuket Sandbox and cash on hand increased to THB 27 the new normal trend, focusing on
Samui Plus will pave way for the billion at end of July customer experience, product
Residential development and AVC country’s reopening to innovation, technology & digital
remained profitable at NPAT level international tourism transformation, and sustainability
5
2Q21 Y-Y Performance Recap
In 2Q21, MINT’s core revenue more than doubled compared to 2Q20 low base with global lockdown, together with the recovery of the European
hotel portfolio since mobility restrictions started to ease in Europe in mid-May 2021. The increase in revenue, together with continued cost savings,
resulted in the reduction of net loss in 2Q21 by more than half y-y, attributable to all business units, especially NH Hotel Group. Moreover, the
performance improved every month during the quarter, with MINT reporting positive net profit in June 2021.
REVENUE 2Q21 REVENUE CONTRIBUTION
+133% y-y Minor
THB million
Lifestyle
16,000 +1,246 15,587 +134 15,721
+5,072 4% Minor
-14
12,000 Food
+2,602 33%
8,000 6,698 6,682 THB
15,587
-17
4,000 million
Minor
0 Hotels
2Q20 Non-core 2Q20 Minor Hotels NHH Minor Food Minor 2Q21 Non-core 2Q21 63%
Reported Items Core excl NHH Lifestyle Core Items Reported * Excludes non-core items
NET PROFIT MONTHLY NPAT TREND
THB million -53% y-y
THB billion
0
1.0
-2,500 +488 +9 0.2
+2,367 -1.9 -1.7
0.0
(3,395) -529 (3,924)
-5,000
+903
+1,285 -1.0
-7,500 (7,162)
(8,448) -2.0
-10,000 Apr-21 May-21 Jun-21
2Q20 Non-core 2Q20 Minor Hotels NHH Minor Minor 2Q21 Non-core 2Q21
Reported Items Core excl NHH Food Lifestyle Core Items Reported
6
2Q21 Q-Q Performance Recap
2Q21 revenue increased by 25% q-q, primarily from the recovery of the European market, despite slowdown in Thailand because of the third wave of
COVID-19 and the Maldives because of the low season. Correspondingly with the revenue increase and continued cost control, net loss also improved
significantly q-q.
REVENUE
THB million +25% q-q
+3,876 +107 15,587 +134 15,721
16,000
12,618 12,499 -195
12,000 -119 -700
8,000
4,000
0
1Q21 Non-core 1Q21 Minor Hotels NHH Minor Food Minor 2Q21 Non-core 2Q21
Reported Items Core excl NHH Lifestyle Core Items Reported
NET PROFIT
THB million -35% q-q
0
-2,000
+2,281
-4,000 -57 -55 (3,395)
+2,039 -529 (3,924)
-6,000 (5,211) -354
-8,000 (7,250)
1Q21 Non-core 1Q21 Minor Hotels NHH Minor Minor 2Q21 Non-core 2Q21
Reported Items Core excl NHH Food Lifestyle Core Items Reported
7
International Presence
With a solid diversification strategy implemented, MINT’s footprint was in 63 countries at the end of 2Q21 across its hospitality and restaurant
businesses. Thailand contribution is especially low in 1H21 because of the impact from the pandemic.
Minor Hotels
Minor Food
Combination
REVENUE CONTRIBUTION
100%
75% 43%
63% International
67%
50% Thailand
25% 57%
37% 33%
0%
2014 2020 1H21
*Excludes non-core items
8
Anantara Layan Phuket Resort
MINOR HOTELS
Minor Hotels – Financial Highlights
2Q21 revenue grew both y-y and q-q primarily driven by the reopening in Europe. The y-y growth was exceptionally high by more than four folds, as
a result of the low base effect in 2Q20 amidst the global lockdown. MLR business in Australia and the Maldives hotels continued to be resilient y-y,
while mixed-use business improved significantly y-y from the recovery of the vacation club business and strong residential sales. Continued cost
cutting measures resulted in improved flow-through, with EBITDA turning positive for all businesses and net losses improving significantly.
Residential development and Anantara Vacation Club remained profitable at the NPAT level.
MINOR HOTELS – FINANCIAL PERFORMANCE PERFORMANCE SNAPSHOT – BY BUSINESS
+361% y-y -49% y-y 2Q21 Revenue Change (THB)
+48% q-q -36% q-q
Q-Q Y-Y
9,800
6,624 Owned &
THB 1,948 Leased 107% 407%
million 2,126
-2,275 19.9%
-602 -6,687 -5,343 -3,416 Management
Letting Rights 14% 229%
Managed
Hotels 18% 58%
2Q20 1Q21 2Q21 2Q20 1Q21 2Q21 2Q20 1Q21 2Q21
Revenue EBITDA NPAT Mixed-Use
Business 39% 306%
* The financials above reflect performance from operation, and therefore exclude non-core items. % Margin
BUSINESS PERFORMANCE SNAPSHOT – BY GEOGRAPHY
Thailand Europe Australia & Maldives & The Americas
New Zealand The Middle East
2Q21 Q-Q
Revenue
68% 183% 21% 33% 51%
Change
(THB) Y-Y 171% 493% 228% 371% NM
10Minor Hotels – International Presence
In recent years, MINT has implemented a solid diversification strategy. Today, MINT operates hotels and spas under a combination of owned, leased
and management business models in 55 countries. MINT is seeing its diversification strategy positively helping the recovery process from COVID-19,
starting with the reopening of Europe.
Investment
Management
Combination
New Destinations in Pipeline
Hubs
REVENUE CONTRIBUTION
100%
33%
75% International
87% 88% Thailand
50%
67%
25%
13% 12%
0%
2014 2020 1H21
* Excludes non-core items
11Minor Hotels’ Portfolio
In terms of business model, owned and leased business contribute over 70% of Minor Hotels’ revenue in 2Q21. In terms of geography, Europe is the
major contributor with about 2/3 of Minor Hotels’ revenue, especially with the recovery of the European hotel business following the reopening of
the countries. Australia & New Zealand is the second largest contributor. Thailand contribution has declined during the quarter because of the
impact from the third wave of COVID-19.
SYSTEM-WIDE ROOM CONTRIBUTION SYSTEM-WIDE ROOM CONTRIBUTION
By Ownership By Geography
MLR Middle East & Asia
9% Africa 7% 10%
Owned Oceania
Managed 25% 9%
17%
75,242 Americas 75,242
JV Rooms* 11% Rooms*
2%
Leased Europe
47% * Entire portfolio including 63% * Entire portfolio including
temporarily closed hotels temporarily closed hotels
** As at end of Jun 2021 ** As at end of Jun 2021
2Q21 CORE REVENUE CONTRIBUTION 2Q21 CORE REVENUE CONTRIBUTION
By Business By Geography
Mixed-use Others Thailand
9% Maldives & 10% 5%
Middle East
MLR 3%
15% THB Australia &
9,800 New Zealand
Managed million 16%
3%
Owned & Americas
Leased 1% Europe
73% 65%
12Owned & Leased Hotels
Number of rooms of the entire owned & leased hotel portfolio remained flat y-y, but increased slightly by 2% from 2Q19. Systemwide RevPar
increased by over five folds y-y, led by recovery in Europe, together with the low base effect with global lock down in 2Q20. With the RevPar growth
and significantly higher number of operational hotels in 2Q21 compared to 2Q20, revenue of owned & leased hotels increased by more than five
times y-y in 2Q21.
SYSTEMWIDE QUARTERLY OPERATIONAL STATS*
+2% vs 2Q19 -51% vs 2Q19 -21% vs 2Q19 -76% vs 2Q19
Flat y-y 74% +17% y-y +26% y-y +413% y-y
54,470 54,537 4,109 3,053
53,262 3,238
2,563
23%
739
6% 144
2Q19 2Q20 2Q21 2Q19
2Q19 2Q20
2Q20 2Q21
2Q21 2Q19
2Q19 2Q20
2Q20 2Q21
2Q21 2Q19
2Q19 2Q202Q20 2Q21
2Q21
No of Rooms Occupancy ADR (THB) RevPar (THB)
* Entire portfolio including temporarily closed hotels
MONTHLY REVPAR TREND – ENTIRE PORTFOLIO*
1%
-6%
-50% Monthly Systemwide 2021 RevPar Growth
-68% vs 2019 - THB
-70% -76%
-83% Monthly Systemwide 2020 RevPar Growth
-64% -73%
-73% -77%
-82% -84% -83% -85% -81% vs 2019 - THB
-89%
-99% -98%
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
* Entire portfolio including temporarily closed hotels
13Owned & Leased Hotels – Europe & The Americas
Hotels in Europe & the Americas are the largest contributor to owned & leased hotel portfolio. 2Q21 RevPar of Europe & the Americas hotels
showed visible improvement y-y since May 2021 with the reopening of the European countries, starting in the south in mid-May and the north in
June, following the accelerated vaccination rate. Given that the majority of customers in Europe are intra-European travelers, the portfolio is
already seeing a quick turnaround.
OPERATIONAL STATS – EUROPE & THE AMERICAS (SYSTEM-WIDE) GEOGRAPHICAL BREAKDOWN
-52% vs 2Q19 -25% vs 2Q19 -77% vs 2Q19
Americas
+17% y-y +14% y-y 7%
+375% y-y
75% Spain
110 82 2Q21 31%
82
72 Revenue Central
23% Contribution Europe
19
6% 4 36%
Italy
2Q19 2Q20 2Q21 2Q19 2Q20 2Q21 2Q19 2Q20 2Q21
Benelux 15%
Occupancy ADR (EUR) RevPar (EUR) 11%
9%
8.7
3%
-52% 6.5
-69%
-70% -85% -78%
-71% -64% -74% 2.9
1.9
-84% -83% -85% -87% -79% -87% -83%
-99% -98% NM*
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Spain Italy Benelux Central Latin
Europe America
2021 Europe & the Americas RevPar Growth (vs 2019) - EUR
2020 Europe & the Americas RevPar Growth (vs 2019) - EUR 2Q21 y-y System-wide RevPar Increase (x)
Note: Europe & the Americas include hotels under NHH portfolio and hotels in Portugal and Brazil * Latin America hotels were closed in 2Q20
14Owned & Leased Hotels – The European Recovery
Although the number of new cases in Europe has been rising because of the new delta variant, the death rate has significantly declined because of
the good progress on vaccination. Correspondingly, hotels in Europe have reopened with rising occupancies and ADRs, driven by domestic and
intra-European demand, primarily in the B2C leisure segment. Indications for corporate demand after the summer is also strong.
VACCINATION vs COVID-19 CASES THE EUROPEAN RECOVERY
Cumulative Uptake of Vaccine Doses Among Adults in EU Hotel Reopenings
83% 84% 85% 322 322
72% 69% 76% 74% 76% 287
65% 68% 280 281
61% 63% 246 265 239 219 229 244
199 213
163
28 44
EU Spain Italy Germany Belgium Netherlands
At least one dose Full vaccination
Source: European Centre for Disease Prevention and Control; Data as at 9 Aug 2021
No of
Rising No of New Cases vs Stable No of Deaths Weekly Occupancy Trend (European Open Owned & Leased Hotels)
No of
new cases No of New Cases (LHS) No of New Deaths (RHS) death cases
350,000 25,000 60%
300,000 50%
20,000
250,000
40%
200,000 15,000
30%
150,000 10,000
100,000 20%
5,000
50,000 10%
0 0 0%
Source: Our World in Data
15Owned Hotels – Thailand & Maldives
The two largest geographies for Minor Hotels outside of Europe are Thailand and the Maldives.
OPERATIONAL STATS – THAILAND (ORGANIC) OPERATIONAL STATS – MALDIVES (ORGANIC)
Hotels in Thailand continued to mainly cater to domestic tourists and alternative Hotels in the Maldives reopened at the end of September 2020, with continuous
quarantine guests. Thailand portfolio was impacted by the third wave of COVID-19 positive trend since then. In many months, RevPar of the Maldives hotels was
since mid-April 2021. On 1 July, Phuket Sandbox model was launched, followed by almost back to the pre-COVID level. Note that the RevPar decline in 2Q21 vs 2Q19
Samui Plus on 15 July, paving way for reopening of the country. As a result, RevPar was primarily attributable to April volatility, while RevPar in May & June were very
of the provinces in July is seeing better m-m performance. close to pre-COVID level. RevPar in July has already exceeded the pre-COVID level.
-58% vs 2Q19 -29% vs 2Q19 -86% vs 2Q19 -8% vs 2Q19 -9% vs 2Q19 -23% vs 2Q19
+13% y-y +15% y-y +608% y-y NM y-y NM y-y NM y-y
73%
5,367 57%
3,891 49% 832
3,309 3,789 755 476
370
2% 15% 78 553 0% - -
2Q19 2Q20 2Q21 2Q19 2Q20 2Q21 2Q19 2Q20 2Q21 2Q19 2Q20 2Q21 2Q19 2Q20 2Q21 2Q19 2Q20 2Q21
Occupancy ADR (THB) RevPar (THB) Occupancy ADR (USD) RevPar (USD)
18% 10%
-3% 5% -8% -5% -5%
-41% -38% -5%
-71% -20% -20%
-79% -82% -79% -79% -85% -87% -84% -44%
-82% -93% -86% -81% -68% -73% -80% -81% -53%
-92% -66%
-94% -92% -88% -99% -97% -87%
-95%
-100% -100%-100% -100% -100% -99%
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Monthly 2021 Bangkok RevPar Growth vs 2019 - THB Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Monthly 2021 Provinces RevPar Growth vs 2019 - THB Monthly 2021 Maldives RevPar Growth vs 2019 - USD
Monthly 2020 Thailand RevPar Growth vs 2019 - THB Monthly 2020 Maldives RevPar Growth vs 2019 - USD
16Asset-Light Businesses
MINT’s asset light businesses include management letting rights (MLR) of serviced-suites primarily under the Oaks brand in Australia and
New Zealand, together with the hotel management contracts under Minor Hotels’ brands. In 2Q21, RevPar of MLR business in Australia has already
exceeded pre-COVID-19 level (but came down in July because of the temporary lockdown of many cities), while hotels under management is seeing
an improving RevPar trend compared to previous year. EBITDA of MLR business continued to be positive in 2Q21.
MANAGEMENT LETTING RIGHTS MANAGED HOTELS
-8% vs 2Q19 +12% vs 2Q19 +23% vs 2Q19 -7% vs 2Q19 -54% vs 2Q19
-2% y-y +289% y-y +324% y-y +1% y-y +210% y-y
136
6,989 6,572 6,458 121 3,291 13,408
2,673 12,316 12,418 2,905
35 777 1,336
431
2Q19 2Q20 2Q21 2Q19 2Q20 2Q21 2Q19 2Q20 2Q21 2Q19 2Q20 2Q21 2Q19
2Q19 2Q20
2Q20 2Q21
2Q21
No of Rooms RevPar (AUD) RevPar (THB) No of Rooms System-wide RevPar (THB)
12% 15% 11% 5%
4% -5% -11%
-15%
-27% -1% -45% -38%
-9% -53% -53%
-26% -30% -61%
-35% -41% -29% -33% -54%
-37% -47% -63% -67% -55% -62% -56% -57% -65%-54%
-72%
-70% -82%
-78% -92%
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Monthly 2021 RevPar Growth (vs 2019) - AUD Monthly 2021 Systemwide RevPar Growth (vs 2019) - THB
Monthly 2020 RevPar Growth (vs 2019) - AUD Monthly 2020 Systemwide RevPar Growth (vs 2019) - THB
17Hotel Expansion Pipeline – 64 Hotels; 13,119 Rooms
MINT will continue to look for opportunities to expand its hotel portfolio, especially through asset light business model during the short to medium
term. This includes the recently signed management contracts for hotels in Bahrain and joint-venture with Funyard to expand the hotel
management portfolio in China.
2021F 2022F 2023F 2024F-2025F
• Nice, France 152 rms • Ubud, Bali, Indonesia* 71 rms • Sydney, Australia 254 rms
• Fares Island, Maldives* 200 rms • Frankfurt, Germany 428 rms
OWNED & LEASED
• Khao Lak, Thailand 328 rms • Monterrey, Mexico 120 rms
• Milan, Italy 185 rms • Cagliari, Italy 100 rms
• Alicante, Spain 63 rms • Hamburg, Germany 261 rms
• Copenhagen, Denmark 394 rms • Frankfurt, Germany 375 rms
• Milan, Italy 100 rms
• Hamburg, Germany 136 rms
8 Hotels / 1,558 Rooms 6 Hotels / 1,355 Rooms 1 Hotel / 254 Rooms
15 Hotels / 3,167 Rooms
* Note: Joint-ventured properties
• Nanjing, China 120 rms • Phi Phi Island, Thailand 107 rms • Ho Chi Minh City, Vietnam 217 rms • Riyadh, Saudi Arabia 163 rms
• Dubai, UAE 70 rms • Sharjah, UAE 233 rms • Ho Tram, Vietnam 410 rms • Yangon, Myanmar 250 rms
• Krabi, Thailand 83 rms • Ras Al Khaimah, UAE 174 rms • Savanne, Mauritius 156 rms • Phan Thiet, Vietnam 516 rms
• Phnom Penh, Cambodia 35 rms • Doha, UAE 292 rms • Sifah, Oman 300 rms • Manama, Bahrain 110 rms
• Muscat, Oman 206 rms • Samui Island, Thailand 80 rms • Kota Kinabalu, Malaysia 386 rms • Manama, Bahrain 110 rms
MANAGED / MLRS
• Chengdu, China 201 rms • Cam Ranh, Vietnam 397&324 rms • Hangzhou, China 166 rms • Yangon, Myanmar 221 rms
• Hangzhou, China 108 rms • Nha Trang, Vietnam 280 rms • Fortaleza, Brazil 130 rms Others • Hangzhou, China 54 rms
• Chengdu, China 197 rms • Busan, Korea 570 rms • Bahia, Brazil 50 rms
• Nairobi, Kenya 120 rms • Doha, Qatar 228 rms • Phuket, Thailand 500 rms
• Lima, Peru 164 rms • Panama, Panama 83 rms • Sydney, Australia 266 rms
• Iquique, Chile 135 rms • Santiago, Chile 146 rms • Guadalajara, Mexico 120 rms
• Dubai, UAE 533 rms Others • Zhuhai, China 100 rms • Aguascalientes, Mexico 105 rms
• Feira de Santana, Brazil 207 rms • Mexico City, Mexico 144 rms
• Murano, Italy 38 rms • Lima, Peru 265 rms
14 Hotels / 2,217 Rooms 13 Hotels / 1,014 Rooms 15 Hotels / 3,297 Rooms 7 Hotels / 1,424 Rooms
49 Hotels / 9,952 Rooms
** MINT is in the process of reevaluating the opening dates of the hotels in the pipeline. 18Mixed-Use Business
Mixed-use business comprises residential development and Anantara Vacation Club. In addition to the current projects, MINT has a pipeline of
branded residences for sale in order to ensure the continuity of revenue stream in the coming years. With strong momentum of Anantara Vacation
Club and residential sales, revenue of mixed-use business more than quadrupled y-y in 2Q21, resulting in profitable bottom line of the two
businesses at the NPAT level for the third consecutive quarter.
RESIDENTIAL DEVELOPMENT ANANTARA VACATION CLUB
CURRENT PROJECTS GROWING MEMBERSHIP
Layan Residences by Launched +9%
15 luxury pool villas 100%-owned
Anantara, Phuket 2015 Others China
15,935 23% 42%
14,671
Avadina Hills Launched Malaysia
16 luxury pool villas 50% JV
by Anantara, Phuket 2018 6%
Hong Kong
Anantara Chiang Mai 44 units in 7-storey Launched 7%
Serviced Suites condominium building 50% JV 2016 Singapore
2Q20 2Q21 7% Thailand
No of Members 15%
181 keys for rent & 6 penthouses Launched
Torres Rani, Maputo 49% JV
for sale; 21-storey office tower 2015 INVENTORY TO ACCOMMODATE GROWING MEMBERS
Anantara Desaru Launched >330
Residences, Malaysia 20 residential villas 60% JV 2020 Queenstown
+6%
Bali
259 Sanya
PIPELINE 244 Samui
Phuket
Anantara Ubud To launch Bangkok
Residences, Indonesia 15 residential villas 50% JV 2022 Chiang Mai
To launch 2Q20 2Q21 2025F
Silom Office NA 40% JV 2023 No of Units No of Units
* MINT is in the process of reevaluating the launch dates of the residential projects in the pipeline.
19MINOR FOOD
Minor Food – Financial Highlights
Minor Food’s revenue increased by 31% in 2Q21 y-y, driven by demand recovery in China and Australia, together with the low base effect from the
global lockdown in 2Q20. EBITDA more than doubled y-y, attributable to effective higher flow through with the revenue increase and cost control
measures across all hubs. Consequently, bottom line of Minor Food turned profitable for fourth consecutive quarter.
FINANCIAL PERFORMANCE OPERATIONAL STATS
+31% y-y +145% y-y NM
+4% vs 2019
+2% q-q +8% q-q -36% q-q
5,123 5,231 Flat y-y
1,079 1,170
3,985 2,268 2,363 2,367 36.4%
THB
million 478
21.1% 22.4% 160 6.2% 3.8%
103 -3.6% -23.0% -36.8%
12.0% -385 3.1% 2.0%
% Margin
2Q20 1Q21 2Q21 2Q20 1Q21 2Q21 2Q20 1Q21 2Q21 2Q19 2Q20 2Q21 2Q19 2Q20 2Q21 2Q19 2Q20 2Q21
Revenue EBITDA NPAT No of Outlets SSSG TSSG
* The financials above reflect performance from operation, and therefore exclude non-core items
• Same-Store-Sales: 2Q21 SSSG for the portfolio turned positive for the first time in
three years, driven by Australia and China hubs, although Thailand continued to 66.7%
be impacted by the third wave of COVID-19. Slower m-m trend was a result of the 42.0%
third wave in Thailand and Australia hub operating at more normalized level.
• Outlet expansion: 2Q21 network growth was flat y-y. The expansion of Bonchon 2.6% 9.6%
and Coffee Journey outlets in Thailand and Riverside outlets in China was offset by 22.6% -7.8%
closures of nonperforming outlets of The Pizza Company, Dairy Queen, The Coffee -16.0% 11.8% TSSG
-20.0% SSSG
Club and other smaller brands. -5.3% -6.9% -7.6%
-21.6% -20.4%
• Total-System-Sales: Last year’s low base from the global lockdown, together with Jan Feb Mar Apr May Jun Jul
the positive SSSG during the quarter resulted in strong TSSG.
21Minor Food – International Presence
MINT operates three restaurant hubs: Thailand, China and Australia. MINT’s restaurant presence is now in 26 countries across the region, operating
owned and franchised business models. MINT continues to cautiously look for opportunities to expand, especially in these existing markets.
Owned
Franchised
Combination
Hubs
REVENUE CONTRIBUTION
100%
33% 33%
75% 43%
International
50%
Thailand
67% 67% 57%
25%
0%
2014 2020 1H21
* Excludes non-core items
22Minor Food Portfolio
Minor Food operates outlets that are 50% owned and 50% franchised, while owned outlets is the majority revenue contributor. In terms of
geography, Thailand continues to be the most important market, followed by China and Australia.
SYSTEM-WIDE OUTLET CONTRIBUTION SYSTEM-WIDE OUTLET CONTRIBUTION
By Ownership By Geography
Others
China 7%
Franchised 5%
50% Australia
2,367 14%
2,367
Outlets Owned Outlets
50%
Thailand
74%
* As at end of Jun 2021 * As at end of Jun 2021
2Q21 CORE REVENUE CONTRIBUTION 2Q21 CORE REVENUE CONTRIBUTION
By Business By Geography
Franchised Others
6% 9%
China
THB 22%
5,231
million
Owned Thailand
94% Australia 57%
12%
23Operational Stats by Hub
China and Australia hubs were the main drivers of Minor Food during the quarter, while Thailand hub has been impacted by the third wave of the
pandemic. Amidst the prolonged volatility, Minor Food continues to focus on its delivery business, as well as product innovation and promotional
campaigns, in order to help uplift sales momentum.
THAILAND CHINA AUSTRALIA
Performance of Thailand hub continued to be under China hub continued to report strong SSSG & TSSG in Both SSSG & TSSG of Australia hub were strong during
pressure with the third wave of the pandemic since 2Q21, as business returned to normal, pre-COVID- the quarter, partly from the low base in 2Q20 and
mid-April 2021 which resulted in limitations in dine-in level, together with store expansion. partly from the improving economic activities
business and operating hours. following the reopening of state borders.
5.5%
0.8% 76.0% 74.0% 85.3%
28.1%
-5.6% -7.2% 15.8%
1.1%
-13.6%
-2.3% -2.1%
-21.8%
-27.0% -28.9% -41.7% -52.8%
2Q19 2Q20 2Q21 2Q19 2Q20 2Q21 2Q19 2Q20 2Q21 2Q19 2Q20 2Q21 2Q19 2Q20 2Q21 2Q19 2Q20 2Q21
SSSG TSSG SSSG TSSG SSSG TSSG
20% 2600%
700% 500%
600%
400%
0% 500%
300%
400%
SSSG 300% 200%
-20% TSSG* 200% 100%
0% TSSG*
100% SSSG
TSSG*
-40% 0% SSSG -100%
Jan Feb Mar Apr May Jun Jul Jan Feb Mar Apr May Jun Jul Jan Feb Mar Apr May Jun Jul
* Closure of dine-in restaurants in Apr & May 2020 * Closure of restaurants in late Jan & Feb 2020 * Closure of dine-in restaurants in Apr & May 2020
24MINOR LIFESTYLE
Minor Lifestyle
2Q21 revenue of Minor Lifestyle declined by 3% y-y, primarily from the weaker contract manufacturing business with the high base of robust
demand for hand sanitizer and cleaning products in 2Q20. With cost savings in personnel, rental fee, logistics and advertising & promotion across
Minor Lifestyle, EBITDA and NPAT in 2Q21 improved y-y. The q-q softness was primarily because of the impact of third wave of the pandemic.
FINANCIAL PERFORMANCE OPERATIONAL STATS
-3% y-y -41% y-y -9% y-y
496 466 432
-26% q-q NM +204% q-q
751
571 556
45 11.4%
THB 1.3%
million
-17 -7.6%
-29 -90 -27 -82 -21.9%
-60.9% -63.0%
2Q20 1Q21 2Q21 2Q20 1Q21 2Q21 2Q20 1Q21 2Q21 2Q19 2Q20 2Q21 2Q19 2Q20 2Q21 2Q19 2Q20 2Q21
Revenue EBITDA NPAT No of Shops SSSG TSSG
Contract • Retail trading: revenue was flat y-y, primarily 300%
Manufacturing because of weak consumer confidence and new
41% 200%
THB wave of COVID-19.
556 100%
million Retail • Contract manufacturing: revenue slightly 0%
Trading
59% declined by 6% y-y, from high base of strong hand SSSG
-100% TSSG
sanitizer and cleaning products in 2Q20.
Jan Feb Mar Apr May Jun Jul
26CORPORATE INFORMATION
CAPEX & Balance Sheet Strength
CAPEX plans, including maintenance, renovations and signed pipeline, have been suspended in 2020-2022, and only those that are necessary will be
continued. MINT has reinforced its balance sheet with the issuance of corporate bonds and perpetual bonds. In addition, the three tranches of
warrants, MINT-W7, MINT-W8 and MINT-W9 will further strengthen its equity base by another THB 15 billion over the next three years. Covenant
waiver until year-end 2022 and carve-out of impairment related to COVID-19 from the calculation of debt-to-equity covenant also provide more
flexibility amidst uncertainty and fluid situation. MINT and its senior unsecured debentures have been affirmed “A” rating by TRIS.
CAPEX PLANS LEVERAGE
X
2.25 2.17
THB million 2.00 2.09
10,000 1.75 1.73
1.50 Internal
1.25 Policy
8,000 1.00
1Q20 2Q20 3Q20 4Q20 1Q21 2Q21
6,000 Interest Bearing Debt to Equity* Net Interest Bearing Debt to Equity*
Interest Bearing Debt to Equity excl impairment from COVID-19*
* Interest Bearing Debt excludes lease liabilities as per covenant calculation definition
4,000 ** Covenant testing waived until YE22
BACK-UP FINANCING
2,000 THB million Note: Cash on hand as at end of
200,000 2Q21 is THB 29,065 million
Equity
0 150,000 65,612
2020 2021F 2022F 2023F 2024F 2025F
100,000
Debt Equity**
Minor Lifestyle 50,000 142,281 24,769
Minor Hotels Debt
0 17,372
Minor Food Outstanding Debt* & Equity Un-Utilized Facility
* Outstanding debt exclude lease liabilities as per covenant calculation definition
** Assume 100% conversion of MINT-W6 (@ THB 41.878 per share), MINT-W7 (@ THB 21.60 per
* CAPEX plan excludes any potential divestments share), MINT-W8 (@ THB 28.00 per share) & MINT-W9 (@ THB 31.00 per share) 28Naladhu Private Island Maldives
RESPONSE TO COVID-19Response to COVID-19
With the COVID-19 pandemic impacting the world longer than anyone would have anticipated, MINT focuses on ensuring the sustainability of its
businesses. While there are many impactful and uncontrollable external factors, such as various countries’ border closures and second wave of the
virus, MINT has relentlessly focused on five key priorities.
1 2 3 4 5
Resuming Minimizing Reducing Managing Embracing
Business Cash Burn & Breakeven Point Balance Sheet Long Term
Activities Preserving “New Normal”
Liquidity
as quickly as through cost to speed up the in order to to capture new
possible controls & CAPEX recovery of ensure the ability business
reduction profit to meet financial opportunities
obligations
30Resuming Business Activities
The outbreak of COVID-19 has impacted MINT’s businesses globally. April 2020 was the month with lowest business activities across the three
business units with global lockdown. Since then, reopenings and closures depend on the pandemic situation and lockdown restrictions in each
geography. The strategy has been to remain flexible according to the volatile COVID situation, and reopen those that generate positive cash flows.
535 536 Closed
447 483 483 10%
389 410 440 395 373 399 399 399
356 376 368
MINOR HOTELS 247
No of hotels in 144
115 Operational
operation
90%
2,289 2,349 2,224 2,236 2,214 2,176
1,947 1,890 2,037 2,179 2,103 2,128 2,139 2,224 2,246 2,178 2,221 Closed
1,767 26%
MINOR FOOD 1,521
No of outlets in
operation Operational
74%
478 476 474 Operational
458 464 474 468 461 470 459 446 439 443
428 400 442 33%
MINOR LIFESTYLE
No of outlets in
143
operation 34 48
Closed
67%
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul
2020 2020 2020 2020 2020 2020 2020 2020 2020 2020 2020 2020 2021 2021 2021 2021 2021 2021 2021
31Minimizing Cash Burn & Preserving Liquidity – Cost Control
Cost control across business units and geographies remain a priority. In 2Q21, costs increased y-y as business activities resumed, but is still well
below the pre-COVID level. Furthermore, the cost increase of 45% is well below the revenue increase of 133%. The majority of the increase is other
opex which increases with business activities.
Quarterly Y-Y Cost Control Revenue
THB million
-9% -51% -34% -41% -36% +45% +133%
30,000
20,000
10,000
0
1Q19* 1Q20* 2Q19* 2Q20* 3Q19* 3Q20* 4Q19* 4Q20* 1Q20** 1Q21** 2Q20** 2Q21** 2Q20** 2Q21**
* Pre-TFRS16 / ** Post-TFRS16
2Q21 Y-Y Cost Savings
Contribution of Cost Increase Payroll Leases Other Opex
THB million +24% +180% +60%
Payroll
25% 8,000
6,000
Leases 4,000
Other 5%
Opex 2,000
70%
0
2Q20 2Q21 2Q20 2Q21 2Q20 2Q21
32Minimizing Cash Burn & Preserving Liquidity – CAPEX Reduction
As part of liquidity preservation plan, MINT targets to reduce its CAPEX over the next two years. The CAPEX reduction is primarily attributable to
Minor Hotels, in particular NHH, while Minor Food is almost back to its normal operational level and therefore its new CAPEX will generate higher
return on investment.
CAPEX REDUCTION PLANS
Minor
THB million Lifestyle
6%
20,000 Other Hotel
Projects
43%
CAPEX Minor Minor
Reduction Food Lifestyle
15,000 29% NHH Mixed-use 3% 1%
Mixed-use
51% 13% 15%
Other
Other Hotel
Hotel CAPEX Projects
Projects Reduction 7% CAPEX
10,000 9% Reduction
NHH
74% NHH
52% 78%
34%
5,000
0
2020 2020 2021 2021 2022 2022
(Previous (New) (Previous (New) (Previous (New)
5 Yr Plan) 5 Yr Plan) 5 Yr Plan)
Minor Hotels Minor Food Minor Lifestyle
33Minimizing Cash Burn & Preserving Liquidity
MINT’s free cash flow turned negative since February 2020 amidst the national lock-downs across the globe. With cost-cutting measures and CAPEX
suspension taking effect, cash burn rate started to see an improving trend since June 2020. With cash flow from operation turning positive
principally from the reopening in Europe, together with cash received from asset rotation, free cash flow turned positive in June 2021. Cash on hand
and working capital facilities provide an additional cushion to support MINT’s liquidity position.
11.0 -24.2 -6.4 -8.7 -4.4 -4.7 -3.2 2.8 -0.7 -1.8 -0.7 -1.5 -0.7 5.1
Free CF
Cash on Hand
THB billion
(after Repayment
of Lease Liabilities)
THB 27 billion
4.2**
14.7 4.2**
Operating CF
1.9 0.8
-0.8
0.6
2.0 0.7
-0.3 0.1
-0.3 0.2
-0.5 0.3
2.2 +
-2.5 -1.2 -1.0 -0.5 -0.9 -1.3
-3.8* -3.3 -2.5 -2.5 -0.3 -1.3 -0.2
-4.5 -3.5 -0.5
-3.6 -1.3
-2.7
-0.4
-11.1 -1.8 Working Cap
-5.0
-2.4 Facilities
Repayment of
Lease Liabilities
-10.5 THB 31 billion
Net CAPEX
2019 2020 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 Jan 21 Feb 21 Mar 21 Apr 21 May 21 Jun 21
*As at end of Jul 2021
* Net of Tivoli & Maldivian Asset Sales
** Net of NH Collection Calderon Sales 34Breakeven Point Analysis – Minor Hotels
Since the peak of the pandemic, breakeven point of the overall portfolio in 4Q20 has declined because of Europe & the Americas with the rental
savings amidst the second wave of the pandemic. Nevertheless, the breakeven point of Europe & the Americas is likely to increase once full
operations resume, similar to other geographies that are already seeing an increase. In 2Q21, average occupancy of the overall portfolio is
improving and approaching the breakeven point, driven primarily by Europe & the Americas.
40% - 48%
24% - 30% 1Q21A
Thailand, Asia, 22% - 27% 28% &
Minor Hotels – Breakeven Occupancy Middle East & Africa 2Q21A
Indicative % at Property Level Before Cost- Peak of COVID-19 4Q20
10,826 keys / 15% of total system Cutting
49% - 59%
52% - 63%
34% - 42% 38% - 46% 33% - 40%
32% - 39%
28% 2Q21A
Europe & Americas 28% 2Q21A
14% 1Q21A
21% 1Q21A
Before Cost Peak of COVID-19 4Q20
46,164 keys / 65% of total system Cutting
Before Cost Cutting Peak of COVID-19 4Q20 74% 2Q21A
70% 1Q21A
43% - 53%
Australia & New 32% - 39% 37% - 45%
Zealand
Before Cost Peak of COVID-19 4Q20
7,201 keys / 10% of total system Cutting
Projected occupancies are an indicative scenario due to highly fluid business on-the-books situation and should not be construed as forward guidance; breakeven occupancy ranges are indicative and calculated based on EBITDA post charging of rental expenses (with impact of TFRS16
neutralized) but before charging corporate overheads; ADR simulated 10-15% down to budget at peak / down to actual at 4Q20 as a central case with occupancy ranges based on variations of +/-10% around the central case; breakeven after cost cutting is with reference to H2 2020 and
applies latest forecast cost structure at peak, actual at 4Q20; breakeven before cost cutting is with reference to FY 2020 (Europe & Americas with reference to H2 2020) and is based on the cost of the 2020 budget; perimeter of breakeven analysis covers c.90% of system keys and is
35
considered by management to be representative of the total system; the c.10% of system keys not covered in the analysis comprises hotels under third-party and JV brands in Thailand and Africa, the hotel management contract portfolio of NHH, and certain Tivoli properties in Portugal.Balance Sheet Management – 2021 Checklist
MINT remains disciplined with its balance sheet management, and is proactively taking all the precautionary actions to minimize any potential
downside risks amidst short-term external uncertainties, during the global distribution of vaccines, both at MINT and NHH level. MINT will continue
to seek additional measures to strengthen its balance sheet and financial position going forward.
MINT NH Hotel Group
✓ Corporate bonds of THB 10 billion successfully issued ✓ EUR 400 million senior secured notes due 2026 issued to
✓ 5-year callable perpetual bonds of USD 300 million issued redeem the outstanding EUR 357 million senior secured
to repay the 97.6% tender of existing 3-year callable USD notes due 2023
300 million perpetual bonds due in December 2021 ✓ Maturity extension of syndicated facility guarantied by
Liabilities ✓ Company and senior unsecured debentures ratings at “A” ICO and revolving credit facilities (RCF) from 2023 to 2026
Management and subordinated perpetual debentures at “BBB+” ✓ Extension of waiver on covenant testing on all material
affirmed by TRIS, with negative outlook maintained loans until Dec 2022
✓ Extension of waiver on covenant testing until end-2022
✓ Change in DE covenant calculation to exclude impairment
arising from COVID-19 from MINT’s equity until 2024
✓ Sales & manage back of two Tivoli hotels in Portugal for ✓ Sales & lease back of NH Collection Barcelona Gran Hotel
Asset Rotation EUR 148 million to strengthen financial position / repay Calderón for EUR 125.5 million to strengthen financial
debt position
✓ Three tranches of warrants1 issued, to strengthen MINT’s ✓ Rights offering of EUR 107 million announced, to be
Strengthening of equity base by approximately THB 15 billion over the next completed in 2H21
equity base three years, up to 2024 ✓ EUR 100 million shareholders’ loan extended by MINT in
May 2021, to be capitalized at rights issuance in 4Q21
1 Details of warrants:
MINT-W7 at exercise price of THB 21.60; control dilution of 4.35%; maturity in 2023
MINT-W8 at exercise price of THB 28.00 and maturity in 2023; MINT-W9 at exercise price of THB 31.00 and maturity in 2024; combined control dilution of 6.17% 36Balance Sheet Management – Asset Rotation Strategy
Given MINT’s pool of quality assets, including NHH’s strong holding of irreplaceable real estate assets across key European cities in great locations,
MINT continues to engage with long-term core real estate investors for asset-based transactions as part of its long-term asset rotation strategy to
further strengthen its balance sheet.
54 Identified Quality Assets Goal of 4-5 Selected Quality Assets
Value of Over THB 100 billion Value of THB 10-15 billion
MINT has completed sales-and-leaseback and sales-and-manage-back transactions for a total
of EUR 273.5 million (THB 10 billion). The hotels will continue to be a part of MINT’s portfolio.
Europe:
Spain: 4 Properties; 855 keys Transaction Structure Selling Price Terms
Italy: 4 Properties; 779 keys Date
Portugal: 5 Properties; 1,236 keys
Netherlands: 6 Properties; 2,105 keys NH Collection 20 years;
Belgium: 5 Properties; 958 keys 30 June Sales & EUR 125.5
Barcelona Gran max 60
Germany: 2 Properties; 614 keys 2021 lease back million
Hotel Calderón years
Thailand & CLMV:
15 Properties; 2,621 keys Tivoli Marina Sales & 20 years;
21 July EUR 148.0
Vilamoura & manage max 30
2021 million
Tivoli Carvoeiro back years
o High quality assets in prime strategic locations
The Americas:
4 Properties; 994 keys Indian Ocean:
o Proven high demand for the assets
7 Properties; 918 keys o Low interest rate environment resulting in acceptable yield
Australia:
2 Properties; 264 keys o Track record of past transactions
o Ability to scale up or down the asset sales size to THB 35 billion as required,
Hotel Locations depending on the evolution of the situation
37Business Outlook
A SNAPSHOT – MINT’S BUSINESS CONDITIONS
MINT has implemented the necessary strategies in order to prepare for recovery. With its strong foundation and diversified portfolio, MINT is well-
positioned to capture the improving demand that is already evident amidst the continued uncertainties in some geographies.
Balance Sheet Position Liquidity Management Minor Hotels Minor Food
Liability Management Cost Reduction Europe & Americas Thailand
Asset Rotation Cash Outflow Oceania China
Equity Base Reinforcement Cash Reserve Asia Australia
39Minor Hotels: Medium to Long Term Strategic Roadmap
While taking into consideration the changing customer behavior with COVID-19 pandemic, including hygiene measures and wellness, Minor Hotels
has identified four main areas to focus in order to ensure long-term sustainable growth.
Delivery of Customer Experiences Digital Transformation Balance Sheet Management NH Business Plan
& & &
Strengthening Brand Equity Economies of Scale Asset Portfolio Management
• Leverage on loyalty program to capture • IT roadmap to ensure seamless delivery of • Asset rotation strategy • Revenue recovery based on scenario
new customer segments customer experience and effective analysis
marketing tools, taking into consideration
data privacy and security New
International normal
Lease / recovery
Sale Manage Cross
border
Domestic
recovery
Lockdown demand
Investor
• Brand positioning & differentiated • Evaluation of cost structure to increase • Ongoing leasehold management • Efficiency measures to be implemented
experience profit margin through integration with further
NHH, scale and supply chain
o Payroll: government support and/or
Sustainable Supply Chain planned redundancy
o Other operating costs: ensuring
Thailand gradual rise as operations resume
o Rental: strict control
Coral Protection
40Minor Food: Digital Transformation
As Minor Food aims to deliver a seamless O2O experience for customers, there are 9 key elements to the digital transformation.
Our core business Key Enablers Customer touchpoints
1 5 3
Strong Brand Portfolio with wide Brand Apps & Websites
Marketing & Loyalty
network of outlets, complemented
by “Cloud Kitchens”
6
Data Analytics
7
Delivery Fleet
2 4
Minor Food Innovation Team Customer Service Channels
(“M-FIT”) as innovation center for 8
the Group Core technology
9
Operating System &
Training
Digital Transformation across all 9 elements to ensure seamless omni-channel experience for our customers
SOURCE: Minor Food Strategy Team 41APPENDIX
Financial Performance - MINT
THB million
22,421 +133% y-y -3%
14,887 14,128 15,587 29,102 28,086
Revenue 12,499
6,682
-270% y-y +213%
3,622
2,982 3,100
EBITDA 1,495 -51 521 1,156
-1,826
EBITDA Margin 13.3% -27.3% 10.0% -0.4% 4.2% 19.9% 4.0% 12.9%
-53% y-y -17%
-3,173 -7,162 -4,783 -4,270 -5,211 -3,395 -10,336 -8,606
NPAT
Net Margin -14.2% -107.2% -32.1% -30.2% -41.7% -21.8% -35.5% -30.6%
1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 1H20 1H21
Minor Food Minor Hotels Minor Lifestyle
* The financials above reflect performance from operation, and therefore exclude non-core items 43Non-Core Items
Amount
Period Business Unit Non-recurring Items
(THB million)
134 revenue
Minor Hotels Non-recurring items of NH Hotel Group
83 net profit
-340 pre-tax
Minor Hotels Loss from asset sale in Spain
-103 post-tax
-737 Minor Hotels Transaction cost related to NH Hotel Group’s debt restructuring
2Q21
-9 Minor Hotels Redundancy costs from cost cutting measures
-9 Minor Food Provision expenses for store closure and write-off of prepaid rent
272 pre-tax
Minor Hotels Foreign exchange gain on unmatched USD Cross-Currency Swap
209 post-tax
45 pre-tax
Minor Hotels Change in fair value of interest rate derivative
36 post-tax
119 revenue
Minor Hotels Non-recurring items of NH Hotel Group
-100 net profit
-2,349 Minor Hotels Impairment of asset related to COVID-19
1Q21 793 Minor Hotels Foreign exchange gain on unmatched USD Cross-Currency Swap
-135 Minor Hotels Change in fair value of interest rate derivative
-12 Minor Hotels / Minor Lifestyle Redundancy costs from cost cutting measures
-236 Minor Food Provision expenses for store closure and lease receivable, and write-off of prepaid rent
17 revenue
Minor Hotels Non-recurring items of NH Hotel Group
-152 net profit
-469 Minor Hotels / Minor Food / Minor Lifestyle Redundancy costs from cost cutting measures
2Q20 -534 Minor Hotels Foreign exchange loss on unmatched USD Cross-Currency Swap
Note: Include the impact of TFRS16
-130 Minor Hotels Change in fair value of interest rate derivative
113 revenue
Minor Hotels Non-recurring items of NH Hotel Group
49 net profit
755 Minor Hotels Foreign exchange gain on unmatched USD Cross-Currency Swap
1Q20 568 pre-tax
Minor Hotels Change in fair value of interest rate derivative
585 post-tax
10 Minor Food Reversal of provision related to Ribs & Rumps
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