Company Presentation - Feb 2017 - SET
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Company Presentation – Feb 2017
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
2016 Performance Recap &
Recent Updates
Key Drivers of 2017
Minor Hotels
Minor Food
Minor Lifestyle
Corporate Information
Anantara Al Jabal Al Akhdar, Oman
2016 Performance Recap & Recent Updates
MINT REMAINED RESILIENT DESPITE MACRO CHALLENGE DURING YEAR-END
Excluding non-recurring items (detailed on page 39), 2016 core net profit decreased by only 3% due mainly to the impact of the
mourning period and flooding in Thailand during 4Q16, and the soft performance of AVC amidst its transformation into a new
business model, as well as some external challenges in MINT’s other key markets.
REVENUE
+19%
Exclspecialgains
THB million +19%
56,973
60,000
48,014
50,000
40,000
30,000
20,000
2015 Minor Hotels Minor Food Minor Lifestyle Special Gains 2016
NET PROFIT
THB million -6%
Exclspecialgains
8,000 -3%
7,040
6,590
6,000
4,000
2,000
2015 Minor Hotels Minor Food Minor Lifestyle Special Gains 2016
2016 PerformanceRecap 5
INTERNATIONAL PRESENCE
With solid diversification strategy, MINT’s presence was in 32 countries at the end of 2016 across its hospitality and restaurant
businesses.
REVENUE CONTRIBUTION
100% MinorHotels
13%
75% 44% 50% 52% MinorFood
International
50% Thailand Combination
87%
25% 56% 50% 48%
0%
2008 2015 2016 2021F
* Excludes non-recurring gains
MINT’s Footprint 6
WHAT’S NEW IN 4Q16 TO DATE
MINOR HOTELS MINOR FOOD
Hotel Investment New Concept Launch
• Rebranded Pattaya Marriott Resort & Spa to • Franchised and launched the first “Yentafo Kruengsonge
AVANI Pattaya Resort & Spa, effective by A. Mallika”, a Thai noodle concept in Singapore in
November 2016 November 2016
• Acquired Elements Boutique Resort & Spa in
Koh Samui, Thailand in October 2016 with plan
to re-open under AVANI brand in 2018
• Opened Oaks Bodgaya Hotel, a 25% joint-
venture property in Bihar, India in January 2017
Hotel Management
• Entered Oman with the launch of Anantara Al
Jabal Al Akhdar Resort in October 2016 and Al
Baleed Resort Salalah by Anantara in
November 2016 MINOR LIFESTYLE
New Brand Launches
Residential Development
• Completed the construction of all 44 units of • Strategically launched two new
the Anantara Chiang Mai Serviced Suites brands to create additional revenue
base and further diversify portfolio:
• Sold and transferred one penthouse unit of
Torres Rani project in Maputo, Mozambique − October 2016: Radley,
handbag and leather
AnantaraVacation Club accessories from London
• Added Chiang Mai as the 7th destination of − November 2016: Anello, bag
Anantara Vacation Club packs and bags from Japan
• Added nine units (six in Phuket and three in • Launched “Bemynt”,MINT’s own e-
Chiang Mai) to the inventory pool of Anantara commerce platform for fashion and
Vacation Club lifestyle brands
RecentDevelopment 7
Key Drivers of 2017 and Beyond
Anantara Vilamoura Algarve Resort, Portugal
KEY DRIVERS OF 2017 AND BEYOND – MINOR HOTELS
PORTUGAL -STRONGGROWTH TO THAILAND-BACK IN FULL SWING
CONTINUE
• Internationaltouristarrivalsto rise by at
• Solid demandgrowthfromshift of
least 9% in 2017 accordingto TAT
Europeantourists towardsgeopolitical
stableregions • EncouragingJanuarydatawithinternational
touristgrowth of7% y-yin Jan17
• Increasedappealand affordabilityof
Portugalwith weakeningof Euroagainst • Uplift in ADR and RevParfromroom
USD renovations- e.g.AnantaraSiam Bangkok
(Phase2), AVANI Pattaya,AnantaraMai
• ADR Increasein timeforhighseason in
Khao PhuketVillasand Four Seasons Tented
2Q17-3Q17 with renovationof Tivoli
Camp
assets
• Higherratesandamplificationof MINT’s AUSTRALIA– MORE PROMISINGGROWTH
brandswith the rebrandingto Anantara OUTLOOK
VilamouraAlgarveand AVANI Avenida • Robusttouristgrowth:international
LiberdadeLisbon primarilydrivenby Asian marketse.g.
Chinese and India;domesticfrom weakened
AFRICA - POSITIVE GROWTHPROSPECTS MALDIVES- PROMOTINGRESILIENCYTHROUGHDIVERSIFICATION AUD
FUELED BY ROBUSTDEMAND • Occupancyuplift throughtargetedand dynamicmarketingtactics • FlourishingNew SouthWalesand Victoria
• Robusttouristdemanddrivenby • Reducedearningsvolatilityby diversifyingfeedermarketsbeyond key marketsdue to resilienteconomic
improvingeconomy,infrastructureand existingmarketslikeChinaand Russiato, forinstance, MiddleEast environments,whichwereless impactedby
flightconnectivity the slowdownof the miningindustry
• Improvedqualityof productand serviceto earn globalrecognitions
• Rampup ofprofitabilitythrough MINT’s • Strongerprofitabilityof recentlyadded
globalplatformand operationalexcellence HOTELMANAGEMENTCONTRACT propertiese.g.The MiltonBrisbaneand
Oaks Southbank, afterthe ramp-upstage
• Uplift of ADR andRevParwith room • Over 20 managementcontractssignedand to be openedover next
renovationof AVANI Gaboronein • Double-digitADR growthwith ongoing
three years(2017-2020)
Botswana refurbishmentssuch as OaksCypress Lakes
• Over 100 hotelsundermanagementby 2021 from36 hotels currently
• Increasingdemandto visit theworld- • Continuedexpansionboth inits home
renownedVictoriaFalls to benefitZambia • Potentialrebrandingopportunitieswiththe strengtheningof MINT’s marketand outsidee.g.Indiaand Middle
hotels owned brandsin the globalhospitalityindustry East
• Strong pick-up of residential sales: The Residences by Anantara, Layan, Phuket (sold 2 in Jan17 with another one unit in the
process of closing), Anantara Chiang Mai Serviced Suites (31 units pre-sold); Torres Rani (2 penthouse units deposited)
REAL ESTATE BUSINESS
• Turnaroundof AVC through enhanced product offerings, accelerated cash flow, strengthened risk management procedures and
targeted sales and marketing strategy
2017 and Beyond 9
KEY DRIVERS OF 2017 AND BEYOND – MINOR FOOD
Thailand
Singapore Australia
China
PORTFOLIO RATIONALIZATION STABLEOPERATIONS WITH FURTHER
MAINTAININGLEADERSHIPPOSITION PROFITABLE EXPANSION
GROWTH
• Recoveryof domesticconsumption, • Productimprovementto capture • New managementin placeto rebuild • Expansionof coffeeroastingbusiness,
supportedby increasedinfrastructure risingmiddle-classconsumptionand a strong foundationfor sustainable the highermarginbusiness, to
spending,higherfarm incomeand urbanization growthin the long-term improveprofitability
lowerhouseholddebt afterexpiryof • Potentialstakeincreaseof Riverside • Ongoingportfoliorationalizationto
the first-carscheme based on the originalagreementwith enhanceproductivity
• Strongbrandportfoliowith significant the Founders to maximizeearnings • StrengtheningThai foodportfolioand
marketsharein most categories potential adoptingeffectivesegmentation
• EncouragingJan17 data,withsame- • Commitmentto operational strategyto bettercapture various
store-salesgrowthof 2.4%, led by The excellence,supplychainmanagement marketsegments
andnetworkplanningto drive • Strengtheningof franchise
PizzaCompany, Swensen’s, The Coffee
productivityimprovementand capabilitiesthroughleverageof
Club, BreadTalk& BurgerKing
profitableexpansion MINT’s operationalexcellenceand
• Ongoingproduct& globalplatform
serviceinnovations • Expandingdelivery channelto • Preparingright products,brandsand
capitalizeon food deliverytrend platformto ridethe benefitwhen the • Strongmomentumof The CoffeeClub
economyturns around brandwith promisingfranchising
opportunitiesboth in Australiaand
• SpearheadThai Express’sfranchise oversease.g.MiddleEast, Thailand
expansionoutside of Singaporesuch etc.
as Vietnamand Malaysia
• Leadingdigital strategyand
strengtheningdeliveryplatformto • Continueddevelopmentof Thai
enhancecustomerexperiencee.g. Expresswithfirst franchisedoutlet in
TPC’s onlinedeliveryordercontribution BeijingCapitalInternationalAirportin
jumpednotablyfrom Jan17, withone moreto open in
the teens to almost May17 • Improvingeconomicconditionin
40% withinone year 2017 to helpupliftthe performance
2017 and Beyond 10Minor Hotels AVANI Riverside Bangkok
FINANCIAL PERFORMANCE – MINOR HOTELS
2016 core revenues of hotel & mixed-use business (excluding non-recurring items) grew by 18%, as a result of growth of owned
hotel and Oaks operations, additional contribution of recently acquired hotels, as well as increased management income. 2016
core EBITDA increased by 16%, while core net profit declined by 7%, attributable to lower profitability of Anantara Vacation Club
amidst its transformation, together with high depreciation and effective tax rate from recent acquisitions.
KEY HIGHLIGHTS
THB million +18%
27,758 Owned hotels • Revenue grew by 39%, as a result of
23,547
improved overall operations, together
17,977 19,243 57% with the incremental revenue from the
16,390 of 2016 hospitality newly acquired hotels.
Revenue revenue
Oaks • Revenue increased by 11%, supported
by RevPar growth of 5% in AUD term
+16% 22% (7% in THB term), together with the
7,146 of 2016 hospitality increase in room count.
6,146 revenue
5,206 5,561
EBITDA 4,535
Managementcontracts • Revenue increased by 12%, primarily
EBITDA attributable to strong performance of
Margin 27.7% 29.0% 28.9% 26.1% 25.7% 4% hotels in Thailand and Seychelles,
of 2016 hospitality
-7% together with additional management
revenue
fees from newly managed hotels.
3,009 2,811
2,449 2,600 • Revenue declined by 13% due to lower
NPAT 1,940 Real estate
residential sales, part of which were
Net
14% delayed from 4Q16 to 1Q17 because of
11.8% 13.6% 13.5% 12.8% 10.1%
Margin of 2016 hospitality the mourning period in Thailand,
revenue together with the rebasing year of AVC
revenue after the adjustment of its
2012 2013 2014 2015 2016 business model.
* The financials above reflect performance from operation, and therefore exclude non-recurring gains as detailed on page 39
Minor Hotels 12MINOR HOTELS - INTERNATIONAL PRESENCE
In recent years, MINT has implemented a solid diversification strategy. At the end of 2016, MINT operates hotels and spas under
a combination of investment, joint-venture and management business models in 25 countries, with another 5 countries in the
pipeline over the next three years.
REVENUE CONTRIBUTION
100% 6%
75% 59% International
63% 68%
50% 94% Thailand
25% 41% 37% 32%
0%
2008 2015 2016 2021F
* Excludes non-recurring gains
Investment
Management
Combination
New Destinationsin Pipeline
Hubs
Minor Hotels 13SYSTEM-WIDE HOTEL OPERATIONS
Excluding new hotels, organic RevPar of the entire portfolio increased by 2% in 2016, driven by slight improvement in organic
ADR. However, 2016 system-wide RevPar decreased by 4%, primarily from newly added hotels in the overseas which are still in at
the ramping-up stage.
NUMBER OF HOTEL ROOMS ADR
No of Rooms +12%
THB
Organic System-wide
19,797 8,000 -1%
20,000 17,714 +2%
14,721 6,110 5,830
15,000 12,800 5,589 5,573 5,956 5,744
MLR 6,000
10,348
10,000 Managed
Joint-venture 4,000
5,000 Owned
0 2,000
2012 2013 2014 2015 2016 2012 2013 2014 2015 2016
OCCUPANCY REVPAR
80% THB
5,000 Organic System-wide
+2% -4%
4,024 3,964 4,051
70% Organic 4,000 3,871 3,901 3,821
69% flat
70% 68% 68%
66% System-wide
67% -1% 3,000
60% 2,000
2012 2013 2014 2015 2016 2012 2013 2014 2015 2016
Minor Hotels 14OWNED-HOTELS OPERATIONS
2016 HOSPITALITY Owned hotels contribute 57% of hotel & mixed-use revenues in 2016, an increase from the same period last
REVENUECONTRIBUTION
year, from stable operations of existing owned hotels and additional revenues of newly acquired hotels.
57% Excluding new hotels, 2016 organic RevPar was flat as soft performance of the Maldives and Brazil were offset
Owned-
hotels
by strong performance of Thailand, especially in the first ten months of the year.
NUMBER OF HOTEL ROOMS ADR
No of
Rooms +32%
THB Organic System-wide
8,000
7,118 +2% -12%
6,000 5,387 8,000 7,028 6,553 6,677
6,035 6,385 5,788
6,000
4,000 3,112
2,676
2,335 4,000
2,000
2,000
0 0
2012 2013 2014 2015 2016 2012 2013 2014 2015 2016
OCCUPANCY REVPAR
THB Organic System-wide
80%
flat -14%
68% Organic 5,000
70% 66% 66% 4,372
64% -2% 4,293 4,292
3,977 4,168
59% System-wide
60% 4,000 3,685
-2%
50% 3,000
40% 2,000
2012 2013 2014 2015 2016 2012 2013 2014 2015 2016
* Changein2015 statsbecauseofretroactiveclassificationofhotelsinZambiafromJV hotelsto ownedhotelsasaresultofchangein investmentstatuseffective3Q16.
Minor Hotels 15OWNED-HOTELS ORGANIC OPERATIONS – THAILAND vs. OVERSEAS
2016 HOSPITALITY Thailand hotels continued to be the largest contributor to the hospitality business, with revenue of owned
REVENUECONTRIBUTION
Thailand hotels in Thailand accounting for almost 30% of hospitality revenue. With the acquisition of Tivoli hotels
hotels
29% portfolio, overseas hotels contributed 28% of hospitality revenue.
Overseas
hotels28%
BANGKOK OVERSEAS
RevPar Growth Organic RevPar Growth Organic
(y-y) +36% +13% -25% +40% +5% (y-y) +99% -44% +8% -43% -8%
THB THB
17,436
6,000
16,000
4,830 4,943 4,967 12,177
4,589 4,662 12,246 11,151
70% 12,000 7,452
70% 74% 6,903 7,265
4,000 63% 3,653 8,000 70% 61% 7,426
51% 3,473 62% 58%
3,278 52%
2,901 4,236 3,889
4,000
2,473
2,000 0
2012 2013 2014 2015 2016 Organic 2012 2013 2014 2015 2016 Organic
THAILAND PROVINCES KEY HIGHLIGHTS
RevPar Growth Organic • Bangkok: organic owned RevPar increase of 5% in 2016, driven by higher
(y-y) +16% +17% -2% +10% +6% occupancy and ADR. Including the new AVANI hotel which is still at the
THB ramping-up stage, system-wide owned RevPar declined by 4% in 2016.
8,000 7,443 • Thailand provinces: resilient performance throughout the year with
6,686 6,937 7,060
5,840 organic owned RevPar increase of 6% in 2016. Key tourist destinations in
69% 65% 70% 71% the North of Thailand, including Chiang Mai and Chiang Rai, achieved
6,000 68%
4,974 5,272 impressive double-digit RevPar growth.
4,599 4,526
3,944
4,000 • Overseas: decline in 2016 organic owned RevPar of 8% due to the
slowdown in the Maldives and Brazil. With the addition of new hotels
which commanded lower RevPar than the portfolio’s average, system-wide
2,000
2012 2013 2014 2015 2016 Organic owned RevPar was down 23% in 2016.
* Change in 2015stats because of retroactive classification of hotels in Zambia from JV hotels to owned
% Occupancy ADR RevPar hotels as a result of change in investment status effective 3Q16.
Minor Hotels 16OWNED-HOTELS OPERATIONS BY KEY MARKETS
2016 HOSPITALITY In 2016, owned hotels in Thailand, Portugal and Africa led the overall RevPar performance of the owned
REVENUECONTRIBUTION
hotel portfolio and helped offset the softness of hospitality industry in Brazil and the Maldives.
57%
Owned-
hotels
2016 REVENUE CONTRIBUTION
OF OWNED HOTELS BY GEOGRAPHY KEY MARKET HIGHLIGHTS
Others, 5%
Thailand • Thailand hotels benefited from strong international tourist arrivals,
Africa,8% which grew by 9% in 2016, led by tourists from China, Russia, India
Maldives,7% and US.
Brazil,8%
• Excluding new hotels, organic RevPar of Thailand owned hotels
Thailand, 50% increased by 5% in 2016 despite the mourning period in 4Q16.
• 2016 system-wide RevPar of Thailand owned hotels was flat due to
additions of new hotels.
Portugal,21%
Portugal • Tivoli hotels in Portugal benefited from the demand shift of European
* Exclude non-recurring items
tourists from other Mediterranean destinations, which are still facing
geopolitical risks.
2016 ORGANIC REVPAR GROWTH (Y-Y) • The portfolio reported impressive RevPar growth of 18% in THB term
in 2016.
18%
Africa • Performance of African operations continued to improve, led by the
hotels in Zambia and Namibia, which reported double-digit RevPar
9%
growth in 2016.
5%
Brazil • RevPar of hotels in Brazil declined due to the temporary impact of the
hotels renovation and lower demand from challenging macro
conditions.
• The completed renovation led to double-digit ADR growth and
-13% improving RevPar trend since the second half of 2016.
-15%
Thailand Portugal Maldives Brazil Africa Maldives • Maldives portfolio was challenged by high competition from new
hotel openings, which put pressure on rates and RevPar performance.
Minor Hotels 17OAKS’ OPERATIONS
2016 HOSPITALITY Oaks’ serviced-suites operation is the second largest segment in the hotel and mixed-use business, with 22%
REVENUECONTRIBUTION
revenue contribution in 2016. Oaks continues to provide the hotel & mixed-use business with stable
performance throughout the year, compared to hotel operations which is more seasonal. Oaks’ 2016
22% revenues in THB increased by 11%, from increase in RevPar and the additional number of rooms.
Oaks
NUMBER OF MANAGED ROOMS ADR
THB THB AUD
No of +2% +7%
Rooms 6,000 5,160 200
6,223 6,232 6,339 4,788 4,795 4,557
5,897 4,271 190
6,000
5,180 4,000
180
5,000
174 170
2,000
4,000 166 AUD
164 160
162 +5%
160
3,000 0 150
2012 2013 2014 2015 2016 2012 2013 2014 2015 2016
OCCUPANCY REVPAR
90% THB AUD
THB
+1% 5,000 +7% 150
3,962 3,643
3,730 3,495
78% 4,000
80% 77% 3,258 140
76% 76% 77%
3,000
133 130
70% 2,000
126 127
AUD 120
1,000 123 124 +5%
60% 0 110
2012 2013 2014 2015 2016 2012 2013 2014 2015 2016
Minor Hotels 18MANAGED-HOTELS OPERATIONS
2016 HOSPITALITY In 2016, managed hotels contributed 4% of hotel & mixed-use revenues. Organic RevPar of managed hotels
REVENUECONTRIBUTION
portfolio was up 2%, primarily from increase in occupancy of managed hotels in Thailand, Seychelles and
Qatar. With the increase in room counts, 2016 revenue from management service increased by 12%.
4%
Management
Contracts
NUMBER OF HOTEL ROOMS ADR
No of +16% THB
Rooms Organic System-wide
-2% -4%
5,000 4,533
8,000
3,910
4,000 3,453 7,038 6,921
3,254 6,748 6,724
3,000
2,023 6,000 5,594
2,000 5,047
1,000
0 4,000
2012 2013 2014 2015 2016 2012 2013 2014 2015 2016
OCCUPANCY REVPAR
80% THB Organic System-wide
+2% -4%
Organic
70% 63% 65% +2%
58% 5,000
64% System-wide 4,400 4,470 4,241
60% 54% 55%
+1% 3,737
3,227
50% 3,000 2,748
40%
2012 2013 2014 2015 2016 1,000
2012 2013 2014 2015 2016
Minor Hotels 19HOTEL EXPANSION PIPELINE
Expansion inside and outside Thailand will contribute to revenue & profit in coming years.
HOTEL INVESTMENT MANAGEMENT CONTRACTS
• Bodhgaya,India* • Guiyang,China • Brasilia,Brazil • Doha, Qatar
(78 rms) (218 rms) (395 rms) (102 rms)
2017F • Doha, Qatar
(150 rms)
• Al Wakrah,
Qatar (101 rms)
• Quy Nhon, Vietnam • Shanghai,China • Queensland,
(25 rms) (260 rms) Australia
• QiandaoLake, China (219 rms)
2018F (120 rms)
• Lijiang,China(678 rms)
• Tozeur, Tunisia (93 rms)
• Desaru, Malaysia • Zhuhai,China (110 rms) • Zhuhai,China
(103 rms) • Le Chaland,Mauritius (300 rms)
• Ubud,Bali, (164 rms) • Jebel Dhanna,
Indonesia* • Al Houara Tangier, UAE
(80 rms) Morocco (150 rms) (228 rms)
• Oman (198 rms) • Busan, Korea
2019F • Zanzibar, Tanzania (400 rms)
(150 rms)
• Jebel Dhanna, UAE
(60 rms)
• Dubai Creek, UAE
(292 rms)
• Ras Al Khaimah, UAE
(306 rms)
• Khao Lak, Thailand • Jeddah, Saudi Arabia • Dubai, UAE
2020F (327 rms) (328 rms) (372 rms)
Total 5 Hotels / 613 Rooms 23 Hotels / 5,394 Rooms
* Note:Joint-venturedproperties
Minor Hotels 20REAL ESTATE BUSINESS - RESIDENTIAL
2016 HOSPITALITY In addition to the Residences by Anantara, Layan, Phuket, Anantara Chiang Mai Serviced Suites and Torres
REVENUECONTRIBUTION
Rani, Maputo, the two joint-venture projects, have also been launched. To ensure the revenue stream from
14%RealEstates residential sales in the coming years, MINT has additional residential projects in the pipeline, including
Desaru in Malaysia and Ubud in Indonesia. 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 ANANTARA CHIANG MAI SERVICED SUITES THE ESTATES SAMUI
Above a secludedcove of
Inventory
powder-whitesands and
21%
crystal-bluewaters, The
Estates Samui offers 14 Sold
luxury villasadjacent to 79%
Four Seasons, Koh Samui.
TORRES RANI, MAPUTO
The project is situatedon Layan beach, one of the A 50% joint-venture withU CityPcl., the project
most picturesquebays on westcoast of Phuket. is inthe city center of ChiangMai, across from
11% sold 9% in
● 15 uniquelydesignedpooltransferred
and process Anantara ChiangMai Resort & Spa. 1 out of 6
of penthouse units
villas in Jan17 closing
● 44 units in 7-storey &
Deposited soldto date*;
condominiumbuilding contract 2 units deposited
● Up to 8 bedrooms, each ● 65 to 162 sq.m.(one signed
with 21 meter private to three bedrooms) Inventory 19% A 49% joint-venture withRani Investment,the
infinitypool project is5 minutesfrom Maputo CBD.
Inventory ● 23 units soldin 4Q16; 32% ● 18-storey residentialtower, comprising
● 1,313 to 2,317 sq.m.of 38%
8 unitsreserved and Sold 181 keysfor rent and 6 penthouseunits
built-uparea Sold
expected to be 49% for sale
● Constructionof the project 42%
● 20,926 sq.m.,21-storey office tower
is completed transferred in 1Q17
Minor Hotels 21REAL ESTATE BUSINESS – ANANTARA VACATION CLUB
2016 HOSPITALITY Part of the real estate business, Anantara Vacation Club is another important contributor to Minor Hotels.
REVENUECONTRIBUTION
Growth of members are driven by four main markets – China, Thailand, Hong Kong and Singapore. AVC sales
14%RealEstates and profitability were temporarily put under pressure in the first nine months of 2016 because of the change
in business model which resulted in smaller package, cash flow acceleration, as well as lower bad debt and
cancellation rate. The benefit of such change started to materialize with improving operational performance
since the end of 2016.
TOTAL NUMBER OF MEMBERS MEMBERS PRIMARILY IN ASIA
Others,10%
Growth (y-y) +207% +67% +41% +28% +15% US, 1%
Philippines,1%
No. of Taiwan,1%
Members 8,000 UAE,2%
8,000 6,928 Japan,4% China,39%
Australia,3%
6,000 5,431
Malaysia,8%
4,000 3,857
2,309
2,000
Singapore,10%
0 HongKong,10%
2012 2013 2014 2015 2016 Thailand,11% As at Dec 2016
INVENTORY TO ACCOMMODATE GROWING MEMBERS GROWTH DRIVEN BY FOUR MARKETS
No. of Units 7 Destinations: No. of China
10 Destinations
500 Queenstown Members Hong Kong
Bali 450 6,000 Thailand 5,553
Sanya
400 Singapore 4,896
Samui
Phuket
300 Bangkok 4,000 3,731 +17%
ChiangMai +48%
200 160 2,460 +111%
119 137 2,000 +300% +11%
106 1,444 +35% +38%
100 +39% +7%
46 +23% +19% +5%
+36% +12% +10% +10%
0 0
2012 2013 2014 2015 2016 2021F 2012 2013 2014 2015 2016
Minor Hotels 22Minor Food
FINANCIAL PERFORMANCE – MINOR FOOD
2016 revenue of Minor Food increased by 24%, attributable to total-system-sales growth of 9.1%, together with the consolidation
of Australia hub in November 2015. EBITDA grew 23%, while net profit grew at a slower rate of 7%, primarily from the increase in
minority interest from the Minor DKL consolidation, together with the slowdown in 4Q16 amidst the mourning period in Thailand.
KEY HIGHLIGHTS
THB million +24%
23,022 Total-system-sales • The Pizza Company, Burger King, Riverside
16,754
18,626 growth of and BreadTalk (Thailand) reported strong
15,343 double-digit total-system-sales growth in
13,192
Revenue 9.1% 2016.
In 2016
Outlet expansion • In 2016, Burger King, BreadTalk (Thailand)
of and SSP (restaurants in airports) achieved
+23% the fastest outlet expansion y-y (in terms
8% of percentage growth).
in 2016
3,843
2,817 3,127
2,759
EBITDA 2,238 • Positive same-store-sales growth in 2016
was led by The Pizza Company, Burger King,
EBITDA 17.0% 18.0% 16.8%
Riverside in China and BreadTalk (Thailand).
16.8% 16.7%
Margin
• Thai Express Group in Singapore continued
+7% Same-store-sales to be soft amidst challenging macro
growth of condition and intensifying competition in
1,501 1,550 1,572 1,684 Singapore.
NPAT 1,180 1.3%
in 2016 • Despite challenges in Minor Food’s key
operating markets, the strength of its multi-
Net
brand portfolio, its diversification strategy
Margin 8.9% 9.8% 9.3% 8.4% 7.3% and operational excellence enabled Minor
Food to maintain resilience and weather
2012 2013 2014 2015 2016 through the difficult time.
* The financials above reflect performance from operation, and therefore exclude non-recurring items as detailed on page 39
Minor Food 24MINOR FOOD - INTERNATIONAL PRESENCE
MINT operates four restaurant hubs: Thailand, Singapore, Australia and China. MINT’s restaurant presence is now in 19 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.
REVENUE CONTRIBUTION
100%
19%
34% 41% 46%
75%
International
50%
81% Thailand
66% 59%
25% 54%
0%
2008 2015 2016 2021F
* Excludes nonrecurring gains
Owned
Franchised
Combination
Hub
Minor Food 25MINOR FOOD – OPERATIONAL PERFORMANCE
2016 total-system-sales of the restaurant business grew 9.1%, primarily from same-store-sales growth of 1.3% and outlet
expansion of 8%, mostly in Thailand and China. Thailand and China hubs achieved robust operational performance, which
helped offset negative same-store-sales growth of Singapore hub in 2016.
SSS & TSS GROWTH RESTAURANT OUTLETS BY GEOGRAPHY
20% International 3,409
Thailand
+8% 39%
15.1%
15% 13.8% 13.1% 1,996
1,851
11.2% 36% 36%
1,043
9.1% 61%
10% 33%
64% 64%
67%
5.5%
5% 2008 2015 2016 2021F
1.5% 1.3%
0.4% RESTAURANT OUTLETS BY OWNERSHIP
-0.2%
0%
Franchised 3,409
Owned
+8% 49%
-5%
2012 2013 2014 2015 2016 1,996
1,851
No. of 1,381 1,544 1,708 1,851 1,996
48% 49%
Outlets 1,043
38% 51%
59%
Same-Store-SalesGrowth Total-System-SalesGrowth 53%
52% 50%
51%
82%
62%
2008 2015 2016 2021F
Minor Food 26THAILAND HUB
2016 RESTAURANT
REVENUECONTRIBUTION Revenues from domestic operations accounted for almost 60% of total restaurant revenue in 2016. The Pizza
Company, Burger King and BreadTalk (Thailand) achieved positive same-store-sales growth, demonstrating
Thailand hub’s ability to maintain resilience and stay ahead of competition.
59%
Thailand
THAILAND’S SSS & TSS GROWTH RESILIENT OPERATIONS
Thailand hub’s same-store-sales growth was 3.3% in 2016, despite Drove constant innovation of products and service across
temporary drop of domestic consumption from the national all sales channels, including exclusive menus for dine-in,
mourning period in 4Q16. The resiliency was attributable to ongoing the new delivery unit with seats for takeaway and
product and service innovation, together with effective marketing enhanced digital delivery platform for delivery segment.
and promotional campaigns.
With consistent outlet expansion, Thailand hub saw total-system- Launched new ice cream flavors and festive menus, as well
sales growth of 14.8% in 2016. as enhanced product presentation style to generate
excitement and attract customer traffic.
20% Strengthened product offerings by reinforcing high quality
and premium ingredients such as premium beef and
seafood items, while driving targeted digital marketing to
15% strengthen customer engagement.
Strengthened cake segment by offering more variety and
10% design, as well as delivery service to expand the customer
base.
5% Continued expansion of both tourist & domestic market
with localized product offerings and new store openings
emphasizing on store visibility and accessibility.
0%
2012 2013 2014 2015 2016 Launched innovative products and new store formats,
which helped increased customer traffic and revenue per
Same-Store-SalesGrowth Total-System-SalesGrowth outlet.
Minor Food 27CHINA HUB
2016RESTAURANT
REVENUECONTRIBUTION China hub maintained strong growth momentum and reported positive same-store-sales growth for the
14% fourth consecutive quarters throughout 2016. MINT is confident in the strong growth prospect of the
China country, supported by growing middle class and increased urbanization trend. With its focus on increasing
the scale, while instilling productivity and efficiency in the everyday operations of all brands, MINT expects
its China hub to yield a meaningful contribution in the future.
CHINA’S SSS& TSS GROWTH DRIVING GROWTH AND PRODUCTIVITY
Same-store-sales of China operations were positive throughout the With increased food delivery trend, Riverside has revamped its
year in 2016 as a result of robust operational performance of all menu format and rolled out its delivery service across most of
three brands. its outlet since November 2016.
Total-system-sales growth in 2016 was 17.4%, from the strong Sizzler continue to strengthen its product offerings and pricing
same-store-sales growth and disciplined outlet expansion of the strategy, including Salad to Go, beef menu and food delivery, to
Riverside outlets (+9%). grow its customer base.
Acquisitionof Thai Express is in the process of strengthen its supply chain
Riverside practice and operations to ensure product consistency and
300% profitable expansion going forward.
Minor food is planning to increase stake in Riverside based on
the original agreement with the Founders to capture the strong
growth prospect of the brand.
30%
20%
10%
0%
-10%
-20%
2012 2013 2014 2015 2016
Same-Store-SalesGrowth Total-System-SalesGrowth
Minor Food 28AUSTRALIA HUB
2016RESTAURANT In 2016, Australia hub’s contribution to total restaurant business significantly increased to 15% with the
REVENUECONTRIBUTION
consolidation of the Australian performance, as opposed to the recognition of equity income in previous
years, after the increase in MINT’s shareholding from 50% to 70% in November 2015.
15%
Australia
AUSTRALIA’S SSS & TSS GROWTH STABLE PERFORMANCE WITH BRIGHTER OUTLOOK
Australia hub remained resilient, reporting flat same-store-sales The Coffee Club, the largest contributor to the hub, performed
growth in 2016 amidst the sluggish economy in Australia. well in 2016 with positive same-store-sales growth.
Total-system-sales continued to grow by 1.9%, as Australia hub
The Coffee Club in the Middle East, although remain relatively
remains cautious in expanding its outlets in the midst of
small, is gaining traction and achieved over 30% same-store-sales
challenging economic environment.
growth in 2016.
25%
Veneziano Group reported solid operational performance with
impressive volume growth of its Veneziano coffee roasting by
20% over 90%.
15% Australia hub will remain cautious in outlet expansion with focus
on store renovation to strengthen its performance when the
economic condition turns around.
10%
5%
0%
-5%
2012 2013 2014 2015 2016
Same-Store-SalesGrowth Total-System-SalesGrowth
Minor Food 29SINGAPORE HUB
2016 RESTAURANT
REVENUECONTRIBUTION Like many other F&B operators in the market, our Singapore hub has been affected by the economic
slowdown and increased competition for the past two years. While still profitable, the hub is strengthening
its operations, including the appointment of new management, its product offerings, effective customer
Singapore segmentation, brand portfolio and operating platform to prepare for the economic turnaround.
11%
DOMINANCE IN THAI CUISINE SEGMENT
SINGAPORE’S SSS& TSS GROWTH
Same-store-sales growth of Singapore hub remained negative, but With the aim to lead the Thai cuisine segment in Singapore, Minor
showed an improving trend in 2016, mainly due to both key brands Food is in the process of restructuring its Thai food brand
- Thai Express and Xin Wang Hong Kong Café. portfolio and selectively changing the concept of existing stores.
Similarly, total-system-sales growth is seeing an improving trend in Apart from Singapore, Thai Express is looking to expand its
2016, although continued to be negative because of the closure of franchise operations in Southeast Asia and elsewhere. Its
non-performing outlets as part of its effort to rationalize its franchise operation in Vietnam, for example, has proven to be
portfolio. very successful with solid same-store-sales growth in 2016.
20%
15%
10%
5%
0%
-5%
-10%
-15%
2012 2013 2014 2015 2016
Same-Store-SalesGrowth Total-System-SalesGrowth
Minor Food 30Minor Lifestyle
FINANCIAL PERFORMANCE – MINOR LIFESTYLE
2016 revenues of Minor Lifestyle was flat. The revenue increase of retail trading business was offset by the soft performance of
contract manufacturing business which faced pressure from sluggish performance of its key customers. Net profit declined by
34%, at a higher rate than the decline in revenues, because of the promotional discounts early in the year, pre-opening expenses
of the new brands and lower operating leverage of the contract manufacturing business.
KEY HIGHLIGHTS
flat
THB million
3,616 3,703 3,505 3,505
3,412 Total-system-sales • Total-system-sales growth was primarily
Revenue growth of attributable to Charles & Keith, Bossini, and
Banana Republic, together with the
8.4% additional sales from new brands.
in 2016
Same-store-sales • Charles & Keith and Bossini reported
-11% growth of positive same-store-sales growth in 2016.
338
384 -0.1%
289 300 267 in 2016
EBITDA
Retail trading • 2016 revenue from retail trading
EBITDA 8.5% 9.3% 10.4% 8.6% 7.6% increased by 4%, mainly from Charles &
Margin 73% Keith, Banana Republic and Zwilling J.A.
-34% of 2016 Minor Lifestyle Henckels, together with additional sales
183 revenue from new brands.
151
123 124
81
NPAT Contractmanufacturing • 2016 revenue from contract
manufacturing declined by 9% from soft
Net
Margin
3.6% 4.2% 4.9% 3.5% 2.3% 27% performance of its key customers.
2012 2013 2014 2015 2016
of 2016 Minor Lifestyle
Revenue
Minor Lifestyle 32MINOR LIFESTYLE – OPERATIONAL PERFORMANCE
Retail trading business showed improvement of same-store-sales performance in 2016. The outlet expansion and launch of new
brands resulted in total-system-sales growth of 8.4%. However, sales per sq.m. declined due to the lower sales per sq.m. than
the average of newly launched brands, including Brooks Brothers, Etam, Radley and Anello, which are still at their ramping-up
stage.
SSS & TSS GROWTH SALES PER SQ. M.
30% THB
140,000
20%
14.6% 120,000
12.0%
10% 8.4% 105,248
100,000 102,333
3.8% 94,860
88,457
-3.3% 86,804
0% 80,000
0.3% -0.1%
-2.1% -8.1%
-10% -6.3% 60,000
2012 2013 2014 2015 2016 2012 2013 2014 2015 2016
No.of No.of 235 276 297 307 327
235 276 297 307 327
Shops Shops
Same-Store-SalesGrowth Total-System-SalesGrowth Fashion & CosmeticSales perSq. m.
* Note: sales per sq.m. was restated to exclude sales of contract manufacturing.
Minor Lifestyle 33Corporate Information
Royal Pavilion Villas by Qasr Al Sarab, UAECAPEX & BALANCE SHEET STRENGTH
In addition to committed CAPEX, MINT also set aside additional CAPEX for future investments and new opportunities in the
pipeline. 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.
CAPEX PLANS – COMMITTED & NEW OPPORTUNITIES LEVERAGE RATIOS
THB million X X
Internal
15,000 6.0 1.3 Policy
1.1 1.22x
1.11x
5.0 0.9
12,000
0.7
4.0 0.5
9,000 2012 2013 2014 2015* 2016
3.0 InterestBearingDebt Net Interest Bearing
to Equity Debt to Equity
6,000 * 2015ratioswere restatedas a resultof additionalinformationrelatedto business
2.0 acquisitionsof TivoliandMinor DKL groups
BACK-UP FINANCING
3,000
1.0
THB million Note: Cash on handas at end of2016
is THB 4,399 million
- - 80,000 Shareholders’
2016A 2017F 2018F 2019F 2020F 2021F Equity
60,000 40,797
MinorFood MinorHotels MinorLifestyle 40,000 Equity*
Debt 7,688
AdditionalCAPEX(non-committedaverageper annum) 20,000 49,832 Debt
forNew Opportunity/Acquisition(s) 29,281
0
EBITDAcoverageon committedCAPEX Outstanding Borrowing & Equity Un-Utilized Facility
* 2016committedCAPEXincludesthefinalstageof Tivoliacquisitionand increased
shareholdingin thehotelportfolioin Africa * IncrementalcapitalincreasefromMINT-W5exercise,assuming100%MINT-W5conversion
CorporateInformation 35FIVE-YEAR ASPIRATIONS
2021F
> 250 hotels
> 300 residences built
2016 > 450 timeshare units
> 3,400 restaurants
155 hotels > 500 retail shops & POS
132 residences built to (> 39,000 Sqm)
2009 date
160 timeshare units
30 hotels 1,996 restaurants
1,112 restaurants 327 retail shops & POS
292 retail shops & POS (27,507 Sqm)
(14,275 Sqm)
6.6bn 2021F
NPAT 2016
(THB) 1.4bn
2009
CorporateInformation 36MINT’S FIVE-YEAR STRATEGY 2017-2021
Five-year strategy consists of the following three key pillars, with clear goals and measurements.
2021
NPAT growth of 15-20% CAGR ROIC of >14%
Goals
Drive a Portfolio of Own
Brands, With Additional Maximize Asset Value Expand Through Existing and
Contribution From Selected and Productivity Future Strategic Investments &
Acquisitions
International Brands
Growth
Strengthening of Hub /
Pillars Cluster System
Asset-light Mixed-use
Model Initiatives
Total-system-sales growth Revenue from overseas of
of 15% 50%
Measure- Improvement of margins
ments Revenue growth Net profit from overseas
of over 10% of 50%
CorporateInformation 37Appendix
NON-RECURRING ITEMS
MINT reported non-recurring items during 2014-2016 as detailed below
AMOUNT
TIMELINE NON-RECURRINGITEMS
(THBMILLION)
490 •GainfrombargainpurchaseofhotelsinZambia
38 •GainfrombargainpurchaseofTivolihotelsinPortugal
•AnantaraVacationClub’s(AVC)provisionofdoubtfulaccount(recordedinSG&A),
whichispartofMINT’sprudentmeasurestoconservativelyprovideforpotentialbad
-359
debtswhichmayarisefromtheaccountsreceivableofPhaseI,whichwassoldduring
2010-2015
4Q16 -223 •Oaks’generaladministrativeexpensesandprovision(recordedinSG&A)
•GainfromchangingstatusofinvestmentinsomeoftheOaksproperties,whichwere
92
offsetby;
•ImpairmentchargesofcertainOaksproperties(recordedinSG&A,pre-tax),resulting
-136
3Q16 innomaterialimpactpost-taxoncorenetprofitin3Q16
•GainfromchangingstatusofinvestmentinBreadTalkGroupinSingapore,from
2Q16 136
available-for-saleinvestmenttoinvestmentinassociate
1Q16 1,932 •GainfrombargainpurchaseoftheTivoliHotels&Resorts
4Q15 •GainonfairvalueadjustmentofchangeinstatusofinvestmentsinMinorDKL,netted
1,665
offwith;
-49 •ReductionofgainfrombargainpurchaseofOaksElanDarwinrecordedin3Q15
3Q15 70 •GainfrombargainpurchaseofOaksElanDarwin
1Q15 650 •GainfrombargainpurchaseofSunInternationalhotelsinAfrica
87(pre-tax)and •GainfromchangingstatusofinvestmentsinSeredibHotelsPLC,fromavailable-for-
2Q14
69(nettax) saleinvestmenttoinvestmentinassociate
CorporateInformation 39You can also read
