Company Presentation - May 2017 - Minor International
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Company Presentation – May 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 1Q17 Performance Recap & Recent Updates Key Drivers of 2017 Minor Hotels Minor Food Minor Lifestyle Corporate Information
1Q17 Performance Recap &
Recent Updates
AVANI Avenida Liberdade Lisbon
RESILIENT PERFORMANCE WITH QUICK TURNAROUND
1Q17 net profit increased by 17% from 1Q16 core net profit, from the strong performance of both Minor Hotels and Minor
Food. The quick turnaround from the national mourning period signified MINT’s strengths, including robust multi-brand
portfolios, geographical diversification and business agility.
REVENUE
THB million
18,000 Excl special gain
+11% y-y
16,000 15,816 15,379
14,000
13,884
12,000
10,000
1Q16 Minor Hotels Minor Food Minor Lifestyle 1Q17
NET PROFIT
THB million
4,000
3,575
Excl special gain
3,000 +17% y-y
1,924
2,000
1,643
1,000
0
1Q16 Minor Hotels Minor Food Minor Lifestyle 1Q17
Non-recurring item: gain from bargain purchase of the Tivoli Hotels & Resorts of THB 1,932 million
1Q17 Performance Recap 5
INTERNATIONAL PRESENCE
With solid diversification strategy, MINT’s presence was in 32 countries at the end of 1Q17 across its hospitality and restaurant
businesses.
REVENUE CONTRIBUTION
100% Minor Hotels
13%
75% 50% 44% 52% International Minor Food
50% Thailand
87% Combination
25% 50% 56% 48%
0%
2008 2016 1Q17 2021F
* Excludes non-recurring gains
MINT’s Footprint 6
WHAT’S NEW IN 1Q17 TO DATE
MINOR HOTELS MINOR FOOD
Hotel Investment Launch of Franchise in China
• Opened Oaks Bodhgaya, a 25% joint-venture • Launched the first Thai Express franchise outlet at the
property in Bihar, India in January 2017 Beijing Capital International Airport
• Brought Anantara and AVANI to Europe for the
first time with the rebranding of two Tivoli
hotels in April 2017:
- Anantara Vilamoura Algarve, Portugal
- AVANI Avenida Liberdade Lisbon, Portugal
Oaks
• Assumed MLR contract of Metro Suites in
Auckland, New Zealand in May 2017 MINOR LIFESTYLE
New Brand Launch
• Launched Joseph Joseph, design-led houseware products
from England, in March 2017
Anantara Vacation Club
• Added five units in Phuket to the inventory pool
of Anantara Vacation Club
Recent Development 7
LATEST INVESTMENTS TO REAFFIRM MINT’S LEADERSHIP POSITION IN PHUKET
MINT unveils three new mixed-use projects with total economic value of over THB 9 billion to drive sustainable growth of its
mixed-use business.
ANANTARA VACATION CLUB
AVADINA HILLS BY ANANTARA
MAI KHAO PHASE III
Mai Khao Beach
Project Details:
• 97 newly-designed luxury apartments and
pool villas and facilities on 20 rais of land
Layan Beach • Estimated real estate value of THB 3 billion
50% joint-venture with Kajima Corporation, the Expected Launch Date: 2018
project is situated adjacent to Anantara Layan
Phuket
Phuket TURTLE VILLAGE MAI KHAO II
Project Details:
• 16 luxury villas on 99 rais of land with total Project Details:
sales value of THB 6 billion • 3-storey mixed-use
building with
• 6-8 bedroom pool villas with approximate size
approximately 1,270
ranging from 2,158-3,251 sq.m.
sq.m. of retail space
& 534 sq.m. of office
space
Expected Launch • Strategic location in northern Phuket,
Date: 2018 surrounded by leading hotels and
vacation clubs
Expected Launch Date: 2019
Recent Development 8
Key Drivers of 2017 and Beyond
KEY DRIVERS OF 2017 AND BEYOND – MINOR HOTELS
PORTUGAL - STRONG GROWTH TO THAILAND - BACK IN FULL SWING
CONTINUE
h Demand:
h Demand: • TAT forecast of international tourist
• Shift of European tourists to arrivals growth of 9% in 2017
geopolitical stable regions h ADR & RevPar:
• Affordability of the country with • Hotel renovations: Anantara Siam
weakening of Euro against USD Bangkok (Phase 2), AVANI Pattaya,
h ADR & RevPar: Anantara Mai Khao Phuket Villas
• Hotel renovations and Four Seasons Tented Camp
• Hotels rebranding: Anantara AUSTRALIA – MORE PROMISING GROWTH
Vilamoura Algarve and AVANI OUTLOOK
Avenida Liberdade Lisbon
h Demand:
• International tourists driven by
AFRICA - POSITIVE GROWTH PROSPECTS Asian markets – Chinese and India
FUELED BY ROBUST DEMAND
• Domestic market driven by
h Demand: previously weakened AUD
• Improving economy, h ADR & RevPar:
infrastructure and flight MALDIVES - PROMOTING RESILIENCY • Hotel renovations, such as Oaks
connectivity HOTEL MANAGEMENT CONTRACT
THROUGH DIVERSIFICATION Cypress Lakes
• Victoria Falls as a main attraction
h Occupancy: h Number of hotels: h profitability:
h ADR & RevPar: • Targeted and dynamic marketing • Ramping up of new properties – The
• Over 20 management contracts
• Renovation of AVANI Gaborone in tactics signed and to be opened over next Milton Brisbane and Oaks
Botswana • Diversification to new markets, three years Southbank
h Profitability: such as Middle East • Over 100 hotels under h Room count:
• Leverage of MINT’s global h Quality of products and services: management by 2021 • Expansion of Oaks brand both in
platform and operational • Earn global recognitions • Potential rebranding opportunities home market and outside e.g. India
excellence and Middle East
• Strong pick-up of residential sales: The Residences by Anantara, Layan, Phuket (3 sold in 1Q17); Anantara Chiang Mai Serviced Suites (3
sold in 1Q17); Torres Rani (1 penthouse sold in 1Q17); more units of these projects are to be sold while additional new pipeline include
REAL ESTATE BUSINESS Desaru, Ubud and Avadina Hills.
• Turnaround of AVC through enhanced product offerings, accelerated cash flow, strengthened risk management procedures and
targeted sales and marketing strategy; new inventory is to be added to provide more points to sell.
2017 and Beyond 10KEY DRIVERS OF 2017 AND BEYOND – MINOR FOOD
Thailand
Australia
China Singapore
STABLE OPERATIONS WITH FURTHER
MAINTAINING LEADERSHIP POSITION PROFITABLE EXPANSION PORTFOLIO RATIONALIZATION
GROWTH
+ Macro environment: + Revenue potential: + New management: + Revenue potential:
• Recovery of domestic consumption, • Product improvement to capture • Rebuilding a strong foundation for • Strengthening of franchise
with increased infrastructure rising middle-class consumption and sustainable growth in the long-term capabilities through leverage of
spending, higher farm income and urbanization MINT’s operational excellence and
+ Revenue potential:
lower household debt after expiry of global platform
• Expansion of delivery channel
the first-car scheme • Strengthening of Thai food portfolio
to prepare for economic turnaround
+ Minor Food’s strengths:
• Strong brand portfolio with
significant market share in most
categories
• Continued development of Thai • Adopting effective segmentation • Franchise opportunities of The
• Product & service innovations Express, with first franchised outlet strategy Coffee Club brand both in Australia
in Beijing Capital International and overseas e.g. Middle East,
• Expansion of Thai Express’s
Airport in Jan17, and one more in Thailand etc.
franchise outside of Singapore such
May17
as Vietnam and Malaysia + Efficiency & profitability
• Potential stake increase in Riverside
• Expansion of the higher margin
based on the original agreement
coffee roasting business
with the Founders
• Leading digital strategy and delivery
platform to enhance customer + Efficiency & profitability
experience; e.g. TPC’s
• Improvement of operational
online delivery order
excellence, supply chain
contribution jumped + Efficiency & profitability
management and network planning
from +10% to almost
• Ongoing portfolio rationalization
40% of total delivery
dockets in one year
2017 and Beyond 11Minor Hotels
Anantara Vilamoura Algarve, PortugalFINANCIAL PERFORMANCE – MINOR HOTELS
1Q17 revenues of hotel & mixed-use business grew by 19%, as a result of increase in revenues of owned hotels, Oaks,
management contracts and real estate business. 1Q17 EBITDA increased by 19%, while net profit increased by 21%, primarily
attributable to the strong performance of Oaks and the real estate business.
KEY HIGHLIGHTS
THB million
+19% y-y
Owned hotels • Revenue grew by 7%, as a result of
8,388 improved overall operations, together
7,078
6,099
7,237 7,344 49% with the incremental revenue from new
of 1Q17 hospitality hotels.
Revenue revenue
Oaks • Revenue increased by 11%, primarily from
the RevPar growth of 7% (in THB term).
+19% y-y 19%
2,594
of 1Q17 hospitality
2,175 2,132 revenue
EBITDA 1,723
1,117
Management contracts • Revenue increased by 21%, primarily
EBITDA attributable to good performance of
Margin 30.7% 18.3% 23.8% 29.0% 30.9% 4% existing hotels, together with additional
of 1Q17 hospitality
management fees from newly managed
+21% y-y revenue
hotels.
1,361
1,124
NPAT 889
561 Real estate • Revenue increased by over 60% from
237
strong performance of both residential
Net
15.9% 3.9% 7.8% 12.1% 16.2%
25% sales and Anantara Vacation Club after
Margin of 1Q17 hospitality the adjustment of its business model.
revenue
1Q16 2Q16 3Q16 4Q16 1Q17
* The financials above reflect performance from operation, and therefore exclude non-recurring items as detailed on page 40
Minor Hotels 13MINOR HOTELS - INTERNATIONAL PRESENCE
In recent years, MINT has implemented a solid diversification strategy. At the end of 1Q17, MINT operates hotels and spas under
a combination of investment, joint-venture and management business models in 25 countries, with another 4 countries in the
pipeline over the next three years.
REVENUE CONTRIBUTION
100% 6%
75% 63% 54% International
68%
50% Thailand
94%
25%
37% 46% 32%
0%
2008 2016 1Q17 2021F
* Excludes non-recurring gains
Investment
Management
Combination
New Destinations in Pipeline
Hubs
Minor Hotels 14SYSTEM-WIDE HOTEL OPERATIONS
Excluding new hotels and impact from exchange rate, organic RevPar of the entire portfolio increased by 3% in 1Q17, driven by
higher occupancy. However, 1Q17 system-wide RevPar decreased by 2%, primarily from newly-added overseas hotels which were
either recently acquired or are still in the ramping-up stage.
NUMBER OF HOTEL ROOMS ADR
No of Rooms +4% y-y THB
Organic excl FX System-wide
19,006 19,115 19,512 19,776 19,794
20,000 8,000 -1% y-y -1% y-y
15,000 6,431 6,397 6,338
5,963
MLR / Oaks 6,000 5,410
5,198
10,000 Managed
Joint-venture 4,000
5,000
Owned
0 2,000
1Q16 2Q16 3Q16 4Q16 1Q17 1Q16 2Q16 3Q16 4Q16 1Q17
OCCUPANCY REVPAR
90% THB
Organic excl FX System-wide
+3% y-y -2% y-y
80% 5,000
70% 4,337 4,450 4,270
70% Organic 3,858
70% 67% +3% y-y 4,000 3,793
64% 65%
3,327
System-wide 3,000
67% Flat y-y
60%
2,000
50% 1,000
1Q16 2Q16 3Q16 4Q16 1Q17 1Q16 2Q16 3Q16 4Q16 1Q17
Minor Hotels 15OWNED-HOTELS OPERATIONS
1Q17 HOSPITALITY Owned hotels contribute almost half of hotel & mixed-use revenues in 1Q17. Excluding new hotels and
REVENUE CONTRIBUTION
foreign exchange impact, 1Q17 organic RevPar grew by 4%, driven by both overseas and Thai hotels. Including
49% new hotels, system-wide RevPar declined by 4%, primarily from the addition of Tivoli portfolio in Feb 2016. In
Owned-
hotels addition, first quarter was the low season for Portugal and some Tivoli properties were under renovation.
NUMBER OF HOTEL ROOMS ADR
+Tivoli Victoria
+Tivoli Palacio de Organic excl FX System-wide
Sateais THB
+Tivoli Jardin +Anantara Kalutara +2% y-y +1% y-y
+Tivoli Lagos +Royal Livingstone +8% y-y
No of +Tivoli Sintra by Anantara +Elements 8,000
Rooms +Tivoli Coimbra +AVANI Victoria Boutique
+AVANI Riverside Bkk Falls Resort & Spa 6,733 6,863 6,791
8,000 6,143
7,084 7,118 7,118 6,000 5,572
7,000 6,566 6,566 4,926
6,000 4,000
5,000
4,000 2,000
1Q16 2Q16 3Q16 4Q16 1Q17 1Q16 2Q16 3Q16 4Q16 1Q17
OCCUPANCY REVPAR
90% THB Organic excl FX System-wide
6,000 +4% y-y -4% y-y
80% 73%
4,063 4,041 4,208 3,907
70% 64% Organic 4,000
60% 61% 3,129 3,445
56% +1% y-y
60%
System-wide
58% 2,000
50% -2% y-y
40% 0
1Q16 2Q16 3Q16 4Q16 1Q17 1Q16 2Q16 3Q16 4Q16 1Q17
* Change in 1Q16 stats because of retroactive classification of hotels in Zambia from JV hotels to owned hotels as a result of change in investment status effective 3Q16.
Minor Hotels 16OWNED-HOTELS OPERATIONS – THAILAND vs. OVERSEAS
1Q17 HOSPITALITY Thailand hotels continued to be the largest contributor to the hospitality business, with revenue of owned
REVENUE CONTRIBUTION
Thailand hotels in Thailand accounting for 30% of hospitality revenue. Following the acquisition of Tivoli hotels
hotels portfolio, overseas hotels contributed 19% of hospitality revenue.
30%
Overseas
hotels 19%
BANGKOK OVERSEAS
RevPar Growth Organic RevPar Growth Organic
(y-y) -3% -8% +2% -3% +4% (y-y) -48% -18% +11% -35% +8%
THB THB
6,000 5,178 10,000
5,103 5,048
4,367 4,240 4,098 8,000 72%
3,923 6,838
4,000 3,173 3,596 6,021 63% 5,817 5,643
2,717 81% 6,000 48%
76% 75% 48% 4,727 4,217 46%
62% 70%
4,000 2,903 2,959 3,148
2,000 2,711
2,000
0 0
1Q16 2Q16 3Q16 4Q16 1Q17 1Q16 2Q16 3Q16 4Q16 1Q17
THAILAND PROVINCES KEY HIGHLIGHTS
RevPar Growth Organic • Bangkok: organic owned RevPar increase of 4% in 1Q17, driven by
(y-y) +11% +4% +6% +2% +1% occupancy. Including the new AVANI Riverside which is still in the ramping-
THB up stage, system-wide owned RevPar increased by lesser magnitude of 2%
10,000 9,132 9,257 in 1Q17.
7,188 8,355 7,229
8,000 5,956
6,125 • Thailand provinces: organic owned RevPar increase of 1% in 1Q17,
79% 5,582 78%
6,000 70% primarily from hotels in the North of Thailand, including Chiang Mai and
67% 67%
4,311 Chiang Rai.
4,000 4,015
• Overseas: increase in 1Q17 organic owned RevPar of 8% due to the
2,000 turnaround of hotels in Brazil and some of the renovated hotels in Portugal.
0 With the addition of new hotels which commanded lower RevPar than the
1Q16 2Q16 3Q16 4Q16 1Q17 portfolio’s average, system-wide owned RevPar was down 7% in 1Q17.
* Change in 1Q16 stats 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 17OWNED-HOTELS OPERATIONS BY KEY MARKETS
1Q17 HOSPITALITY In 1Q17, owned hotels in Thailand and Brazil led the overall RevPar performance of the owned hotel
REVENUE CONTRIBUTION
portfolio and helped offset the softness of the Maldives and Africa, as well as the impact of renovation in
49% Portugal.
Owned-
hotels
1Q17 REVENUE CONTRIBUTION
KEY MARKET HIGHLIGHTS
OF OWNED HOTELS BY GEOGRAPHY
Others, 3% Thailand • International tourist arrivals grew moderately by 2% in 1Q17, while
Africa, 8% Minor Hotels outperformed the industry with room nights of hotels in
Maldives, 9% Thailand growing at a faster rate of 10%.
• Excluding new hotels, organic RevPar of Thailand owned hotels
Brazil, 11% recovered from the mourning period with an increase of 1% in 1Q17.
• 1Q17 system-wide RevPar of Thailand owned hotels was down by 1%
Thailand, 62%
Portugal, 7% due to the addition of AVANI Riverside.
Portugal • Tivoli hotels in Portugal reported negative RevPar growth in 1Q17
* Excludes non-recurring items
because of the ongoing renovation of three hotels.
• The hotels that were renovated since last year – Tivoli Oriente and
1Q17 ORGANIC REVPAR GROWTH (Y-Y)
Tivoli Marina Vilamoura Algarve – saw double digit RevPar growth in
1Q17.
27%
Maldives • The Maldives portfolio started to see an improving trend of its RevPar,
with a decline of only 5% in 1Q17 compared to -15% in 2016.
• RevPar growth of the Maldives portfolio was positive in March and also
going into April of 2017.
1% • RevPar of hotels in Brazil grew by 27% as a result of the completion of
Brazil
the hotel renovation, together with improving political and macro-
-5% economic environment.
-6%
Africa • Performance of African operations declined due to the slow low
-14%
season in Zambia. However, the RevPar started to see an improving
Thailand Portugal Maldives Brazil Africa trend going into April 2017.
Minor Hotels 18OAKS’ OPERATIONS
1Q17 HOSPITALITY
REVENUE CONTRIBUTION Oaks’ serviced-suites operation is the second largest segment in the hotel and mixed-use business, with
almost 20% revenue contribution in 1Q17. Oaks continues to provide the hotel & mixed-use business with
stable performance throughout the year, compared to hotel operations which is more seasonal. Oaks’ 1Q17
19% revenues in THB increased by 11%, primarily from the increase in RevPar.
Oaks
NUMBER OF MANAGED ROOMS ADR
No of THB THB AUD
Rooms +1% y-y +5% y-y
6,000 190
7,000 4,772 4,830
4,592 4,515
6,347 6,339 6,328 4,327
6,257 6,360 180
4,000 179 181
6,000 180
AUD 170
171 +2% y-y
5,000 2,000
165 160
4,000 0 150
1Q16 2Q16 3Q16 4Q16 1Q17 1Q16 2Q16 3Q16 4Q16 1Q17
OCCUPANCY REVPAR
THB AUD
90% THB
+2% y-y 5,000 +7% y-y 160
3,531 3,528 3,749 3,793
78% 79% 79% 4,000
80% 77% 3,162
140
73% 3,000 141 142
137
134 AUD
2,000
70% +4% y-y 120
1,000 120
60% 0 100
1Q16 2Q16 3Q16 4Q16 1Q17 1Q16 2Q16 3Q16 4Q16 1Q17
Minor Hotels 19MANAGED-HOTELS OPERATIONS
1Q17 HOSPITALITY
REVENUE CONTRIBUTION In 1Q17, managed hotels contributed 4% of hotel & mixed-use revenues. Organic RevPar excluding foreign
exchange impact of managed hotels portfolio was up 3%, primarily from increase in occupancy of managed
4% hotels in the Middle East and Seychelles. With RevPar growth and the increase in room counts, 1Q17
Management
revenue from management service increased by 21%.
Contracts
NUMBER OF HOTEL ROOMS ADR
Organic excl FX System-wide
No of +The +Loisaba Tented +AVANI Khon +Anantara Al Jabal
+12% y-y -2% y-y -8% y-y
Rooms Residences at Camp Kaen Al Akhdar, Oman THB
Victoria, Tivoli +Loisaba Star +AVANI Deira +Al Baleed Salalah
Beds Dubai by Anantara 8,000 7,605 7,457
5,000 6,886 7,034
4,533 4,484 6,291 6,068
3,998 4,282 6,000
4,017
4,000
4,000
3,000
2,000
2,000 0
1Q16 2Q16 3Q16 4Q16 1Q17 1Q16 2Q16 3Q16 4Q16 1Q17
OCCUPANCY REVPAR
Organic excl FX System-wide
THB +3% y-y -6% y-y
80% Organic
+4% y-y 6,000 5,280 5,416
73% 4,952
69% 4,244
70% System-wide 3,741 3,788
4,000
62% 62% 70% +1% y-y
59%
60% 2,000
50% 0
1Q16 2Q16 3Q16 4Q16 1Q17
1Q16 2Q16 3Q16 4Q16 1Q17
Minor Hotels 20HOTEL EXPANSION PIPELINE
Expansion inside and outside Thailand will contribute to revenue & profit in coming years.
HOTEL INVESTMENT MANAGEMENT CONTRACTS
• Bodhgaya, • Guiyang, China • Brasilia, Brazil• Auckland,
2017F (218 rms)
India* (78 (395 rms) New Zealand
rms) • Doha, Qatar (370 rms)
(150 rms) • Doha, Qatar
• Al Wakrah, (102 rms)
Qatar (101 rms)
• Quy Nhon, • Shanghai, China (260 rms) • Queensland,
2018F Vietnam Australia
• Qiandao Lake, China
(25 rms) (120 rms) (219 rms)
• Lijiang, China (678 rms)
• Tozeur, Tunisia (93 rms)
• Desaru, • Warangi, • Zhuhai, China (110 rms) • Zhuhai, China
2019F Malaysia Serengeti • Le Chaland, Mauritius (300 rms)
(103 rms) National (164 rms) • Jebel Dhanna,
• Ubud, Bali, Park, UAE
Tanzania* • Al Houara Tangier,
Indonesia* Morocco (150 rms) (228 rms)
(80 rms) (12 rms)
• Oman (198 rms) • Busan, Korea
(400 rms)
• Zanzibar, Tanzania
(150 rms)
• Jebel Dhanna, UAE (60 rms)
• Dubai Creek, UAE (292 rms)
• Ras Al Khaimah, UAE
(306 rms)
2020F • Khao Lak, • Jeddah, Saudi Arabia • Dubai, UAE
Thailand (328 rms) (372 rms)
(327 rms) • Ras Al
Khaimah, UAE
(200 rms)
Total 6 Hotels / 625 Rooms 25 Hotels / 5,964 Rooms
* Note: Joint-ventured properties
Minor Hotels 21REAL ESTATE BUSINESS - RESIDENTIAL
1Q17 HOSPITALITY
REVENUE CONTRIBUTION
In addition to the current projects, three joint-venture projects have been announced, in order to ensure the
revenue stream from residential sales in the coming years. The residential projects in the pipeline include
25% Avadina Hills in Phuket, Desaru in Malaysia and Ubud in Indonesia. Other residential projects will be
Real Estates
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 secluded cove of
powder-white sands and Inventory
21%
crystal-blue waters, The
Estates Samui offers 14 Sold
luxury villas adjacent to 79%
Four Seasons, Koh Samui.
TORRES RANI, MAPUTO
The project is situated on Layan beach, one of the A 50% joint-venture with U City Pcl., the project
most picturesque bays on west coast of Phuket. is in the city center of Chiang Mai, across from
Anantara Chiang Mai Resort & Spa. 2 out of 6
● 15 uniquely designed pool 20% sold & 6% sold & penthouse units
villas transferred ● 44 units in 7-storey 13% transferred sold to date;
in 1Q17 deposited 1 unit deposited
● Up to 8 bedrooms, each condominium building & contract in 1Q17
signed
with 21 meter private ● 65 to 162 sq.m. (one A 49% joint-venture with Rani Investment, the
infinity pool to three bedrooms) project is 5 minutes from Maputo CBD.
● 1,313 to 2,317 sq.m. of Inventory ● 26 units sold to date Inventory
38%
(3 sold in 1Q17); 5 32% ● 18-storey residential tower, comprising
built-up area Sold 181 keys for rent and 6 penthouse units
● Construction of the project 42% units reserved and Sold for sale
is completed expected to be 49%
transferred in 1Q17 ● 20,926 sq.m., 21-storey office tower
Minor Hotels 22REAL ESTATE BUSINESS – ANANTARA VACATION CLUB
1Q17 HOSPITALITY Part of the real estate business, Anantara Vacation Club is another important contributor to Minor Hotels.
REVENUE CONTRIBUTION
Growth of members are driven by four main markets – China, Thailand, Hong Kong and Singapore. With the
change of the sales model since 2015 which resulted in smaller package, accelerated cash flow, as well as
25%
Real Estates lower bad debt and cancellation rate, AVC is seeing the turnaround of its performance since 4Q16. In 1Q17,
AVC revenues increased by 27% y-y.
TOTAL NUMBER OF MEMBERS MEMBERS PRIMARILY IN ASIA
Growth (y-y) +67% +41% +28% +15% +18% US, 1% Others, 10%
Philippines, 1%
No. of Taiwan, 2%
Members UAE, 2%
8,502
8,000 Australia, 3% China, 39%
8,000 6,928
Japan, 4%
6,000 5,431
Malaysia, 8%
4,000 3,857
Singapore,
2,000
9%
0 Hong Kong, Thailand,
2013 2014 2015 2016 1Q17 10% 10% As at Mar 2017
INVENTORY TO ACCOMMODATE GROWING MEMBERS GROWTH DRIVEN BY FOUR MARKETS
No. of Units 7 Destinations: China
10 Destinations No. of
Queenstown Members Hong Kong
500 Bali 5,870
450 6,000 5,553
Sanya Thailand
400 Samui Singapore 4,896
Phuket
300 Bangkok 4,000 3,731 +17% +19%
Chiang Mai +48%
200 2,460 +111%
160 165
137 2,000 +300% +11% +11%
106 119 +35% +38%
100 +39% +7% +11%
+23% +19% +5%
+36% +12% +10% +10% +9%
0 0
2013 2014 2015 2016 1Q17 2021F 2013 2014 2015 2016 1Q17
Minor Hotels 23Minor Food
FINANCIAL PERFORMANCE – MINOR FOOD
1Q17 revenue of Minor Food increased by 3%, attributable to strong performance of Thailand and China hubs, which helped
offset the slowdown of Singapore hub. EBITDA and net profit grew by 7% and 12% respectively, primarily from the higher
operating leverage of Thailand hub and improved profitability of Veneziano the coffee roasting business in Australia.
KEY HIGHLIGHTS
THB million
+3% y-y Total-system-sales • The Pizza Company, Burger King, Riverside
6,028 growth of and BreadTalk (Thailand) reported strong
5,841 5,794
5,766 5,621 double-digit total-system-sales growth in
Revenue 8.2% 1Q17.
in 1Q17
Outlet expansion • In 1Q17, Burger King, BreadTalk (Thailand),
of The Pizza Company and Riverside achieved
+7% y-y the fastest outlet expansion y-y (in terms
8% of percentage growth).
1,051 1,126 in 1Q17
982 933
876
EBITDA • Positive same-store-sales growth in 1Q17
was led by The Pizza Company, Swensen’s,
EBITDA Riverside in China and BreadTalk (Thailand).
18.0% 15.2% 17.0% 16.6% 18.7%
Margin
• Thai Express Group in Singapore continued
+12% y-y Same-store-sales to be soft amidst challenging macro
540 growth of condition and intensifying competition in
481 Singapore.
420 425
NPAT 359 1.3%
in 1Q17 • Despite challenges in Minor Food’s key
operating markets, the strength of its multi-
brand portfolio, diversification strategy and
Net
Margin 8.2% 6.2% 7.2% 7.6% 9.0% operational excellence enabled Minor Food
1Q16 2Q16 3Q16 4Q16 1Q17 to maintain resilience and weather through
the difficult time.
* The financials above reflect performance from operation, and therefore exclude non-recurring items as detailed on page 40
Minor Food 25MINOR 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%
75% 41% 37% 46%
International
50%
81% Thailand
59% 63% 54%
25%
0%
2008 2016 1Q17 2021F
* Excludes nonrecurring gains
Owned
Franchised
Combination
Hub
Minor Food 26MINOR FOOD – OPERATIONAL PERFORMANCE
1Q17 total-system-sales of Minor Food grew 8.2%, primarily from same-store-sales growth of 1.3% and outlet expansion of 8%,
mostly in Thailand, Vietnam and China. Thailand and China hubs achieved robust operational performance, which helped offset
negative same-store-sales growth of Singapore hub in 1Q17.
SSS & TSS GROWTH RESTAURANT OUTLETS BY GEOGRAPHY
International 3,409
20%
Thailand
+8% y-y 39%
15% 1,996 2,017
11.3% 36% 36%
1,043
9.9%
8.8% 33% 61%
10% 8.2% 64%
64%
6.4% 67%
2008 2016 1Q17 2021F
5% 3.0%
2.3%
1.3%
0.9% RESTAURANT OUTLETS BY OWNERSHIP
-0.9%
0%
Franchised 3,409
Owned
+8% y-y
-5% 49%
1Q16 2Q16 3Q16 4Q16 1Q17 1,996 2,017
No. of
1,859 1,883 1,928 1,996 2,017 49%
Outlets 1,043 49%
38% 51%
59%
Same-Store-Sales Growth Total-System-Sales Growth 53%
51% 50%
51%
82%
62%
2008 2016 1Q17 2021F
Minor Food 27THAILAND HUB
1Q17 RESTAURANT
REVENUE CONTRIBUTION Revenues from domestic operations remained the biggest contributor to Minor Food, accounting for 63% of
total restaurant revenue in 1Q17. Diversification, product innovation and effective marketing strategy
afforded Minor Food to stay ahead of competition and achieved positive same-store-sales growth for the
63%
Thailand quarter.
THAILAND’S SSS & TSS GROWTH RESILIENT OPERATIONS
Thailand hub experienced gradual recovery from the mourning
period and outperformed the industry with same-store-sales
Continued to build on innovation of products and services,
including new promotional products and user-friendly
growth of 2.6% in 1Q17. The two brands that performed well mobile app, to enhance customer traffic.
during the quarter were The Pizza Company and Swensen’s.
Successfully launched new sundaes with improved
With consistent outlet expansion, Thailand hub saw total-system-
sales growth of 10.4% in 1Q17.
presentation, focused on the kid’s segment and
strengthened delivery channel, with the aim to increase
customer traffic.
20%
Continued to emphasize Sizzler as a healthy, high quality
choice with the offer of Royal Project and organic
15% ingredients on salad bar and innovative products.
10% Grew the network of outlets with focus on universities and
hospitals, and expanded sales channel to delivery services
by partnering with independent delivery operators.
5%
Launched innovative, limited-time-offer products such as
0% Thai spiced chicken with sticky rice and chicken cheese
pop, which helped increase number of trials and
frequency.
-5%
1Q16 2Q16 3Q16 4Q16 1Q17
Drove expansion, especially in shopping malls and
hypermarket locations in both Bangkok and key cities in
Same-Store-Sales Growth Total-System-Sales Growth upcountry.
Minor Food 28CHINA HUB
1Q17 RESTAURANT
REVENUE CONTRIBUTION China hub maintained strong growth momentum and reported positive same-store-sales growth for the fifth
13% consecutive quarter. MINT is confident in the strong growth prospect of the country, supported by growing
China
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 continued to improve in
1Q17, primarily from the strong operational performance of
Riverside reported strong same-store-sales growth in both the
north (Beijing) and south (Shanghai) of China.
Riverside brand.
China hub will continue to expand its outlets across the three
1Q17 total-system-sales growth remained strong at 16.6%, from
the expansion of all three brands (Riverside, Sizzler and Thai
brands – Riverside, Sizzler and Thai Express.
Express). Inmanner,
order to support the continued outlet expansion in a scalable
China hub remains focused on building exceptional
operational excellence, including the supply chain management.
25%
The plan to increase Minor Food’s stake in Riverside based on
the original agreement with the Founders, in order to capture
20%
the strong growth prospect of the brand, remains intact.
15%
10%
5%
0%
1Q16 2Q16 3Q16 4Q16 1Q17
Same-Store-Sales Growth Total-System-Sales Growth
Minor Food 29AUSTRALIA HUB
1Q17 RESTAURANT
REVENUE CONTRIBUTION Australia hub’s revenue contributed 13% of total restaurant business in 1Q17. Australia hub has provided
Minor Food with stable financial performance despite the temporary impact from the slowdown of the
domestic economy, as majority of revenue was franchise income. Apart from franchise business, stronger
13% performance of Veneziano coffee roasting business also helped drive profitability of Australia hub in 1Q17.
Australia
AUSTRALIA’S SSS & TSS GROWTH STABLE PERFORMANCE WITH BRIGHTER OUTLOOK
Same-store-sales of Australia hub remained flat in 1Q17, as
Although The Coffee Club in Australia has been impacted by the
Queensland continued to experience the prolonged slowdown of domestic economic slowdown, the operation in other markets
the mining industry. including New Zealand, the Middle East and Thailand reported
strong performance in 1Q17.
Consequently, total-system-sales grew by 1.8%, as Australia hub
remains cautious in expanding its outlets in the midst of
challenging economic environment. Veneziano Group performed well with roasting volume 3.5% over
budget in 1Q17.
10.0%
Australia hub will remain cautious in outlet expansion with focus
on product improvement and store renovation to strengthen its
performance when the economic condition turns around.
5.0%
0.0%
1Q16 2Q16 3Q16 4Q16 1Q17
-5.0%
Same-Store-Sales Growth Total-System-Sales Growth
Minor Food 30SINGAPORE HUB
1Q17 RESTAURANT
REVENUE CONTRIBUTION Like many other F&B operators in the market, the Singapore hub has been impacted by the economic
slowdown and increased competition. The hub is not only rationalizing its store portfolio but also
strengthening its operations, including the appointment of new management, its product offerings, effective
8% Singapore customer segmentation, brand portfolio and operating platform to prepare for the economic turnaround.
SINGAPORE’S SSS & TSS GROWTH STRENGTHENING OF THAI FOOD PORTFOLIO
Same-store-sales growth of Singapore hub remained negative in
1Q17 amidst the challenging industry conditions. 5%
Percentage Change in F&B Services Index – Restaurants (y-y)
Consequently, total-system-sales growth was negative in 1Q17 as
Singapore hub continued to be cautious in outlet expansion with
0%
the rationalization of its portfolio.
-5%
0% -10%
-15%
-5% -20%
Source: Department of Statistics Singapore
-10%
The F&B industry in Singapore has been weak throughout 2016
and 2M17, as evidenced by the y-y negative change in Singapore
F&B Services Index of the Restaurant Sector above.
-15%
1Q16 2Q16 3Q16 4Q16 1Q17 InSingapore
addition to the quality of total customer experience, the
hub will focus on operational efficiency and cost
control.
Same-Store-Sales Growth Total-System-Sales Growth
Minor Food 31Minor Lifestyle
FINANCIAL PERFORMANCE – MINOR LIFESTYLE
1Q17 revenue of Minor Lifestyle was flat, as 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
37% y-y, at a higher rate than the decline in revenue, because of the ramping-up stage of the new brands and lower operating
leverage of the contract manufacturing business.
KEY HIGHLIGHTS
THB million
Flat y-y
Total-system-sales • Total-system-sales growth was primarily
964 963 growth of attributable to Charles & Keith and Banana
Revenue 794 836 910
Republic, together with the additional sales
5.7% from new brands.
in 1Q17
Same-store-sales • Charles & Keith and Pedro were the two
growth of brands in the portfolio that reported
-29% y-y positive same-store-sales growth in 1Q17.
91
-8.5%
85
EBITDA in 1Q17
52 60
40
Retail trading • 1Q17 revenue from retail trading increased
EBITDA by 7%, mainly from Charles & Keith,
8.8% 5.1% 6.2% 10.0% 6.2%
Margin 75% together with additional sales from new
of 1Q17 Minor Lifestyle brands.
-37% y-y revenue
38
34
24
NPAT Contract manufacturing • 1Q17 revenue from contract
9 manufacturing declined by 17% from soft
1
Net 25% performance of its key customers.
Margin 3.9% 0.1% 1.1% 3.7% 2.5%
of 1Q17 Minor Lifestyle
1Q16 2Q16 3Q16 4Q16 1Q17 revenue
Minor Lifestyle 33MINOR LIFESTYLE – OPERATIONAL PERFORMANCE
Retail trading business reported total-system-sales growth of 5.7% in 1Q17 from new brands launched, primarily the opening of
Anello, Etam and Radley outlets. Sales per sq.m. is seeing an improving trend, signifying the higher efficiency of the business.
SSS & TSS GROWTH SALES PER SQ. M.
20% THB
16.4% 35,000
30,000
10% 8.8%
6.5%
5.7%
4.2% 25,000 25,238
3.2% 23,850 24,259
20,893 20,699
20,000
0%
0.4%
-0.1%
-3.4% 15,000
-8.5%
-10% 10,000
1Q16 2Q16 3Q16 4Q16 1Q17 1Q16 2Q16 3Q16 4Q16 1Q17
No. of No. of
Shops 307 300 292 327 329 Shops 307 300 292 327 329
Same-Store-Sales Growth Total-System-Sales Growth Fashion & Home & Kitchenware Sales per Sq. m.
* Note: sales per sq.m. was restated to exclude sales of contract manufacturing.
Minor Lifestyle 34Corporate Information
Oaks Bodhgaya, IndiaCAPEX & 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
15,000 6.0 1.4 Internal
Policy
1.2 1.21x
1.09x
5.0 1.0
12,000
0.8
4.0 0.6
9,000
0.4
3.0 1Q16 2Q16 3Q16 4Q16 1Q17
Interest Bearing Debt Net Interest Bearing
6,000 to Equity Debt to Equity
2.0
BACK-UP FINANCING
3,000
1.0 Note: Cash on hand as at end of 1Q17
THB million
was THB 5,113 million
100,000
- -
80,000 Shareholders’
2016A 2017F 2018F 2019F 2020F 2021F Equity
60,000 42,159
Minor Food Minor Hotels Minor Lifestyle
40,000 Equity*
Additional CAPEX (non-committed average per annum) Debt 7,687
for New Investments/Opportunities 20,000 51,007 Debt
29,087
EBITDA coverage on committed CAPEX 0
Outstanding Borrowing & Equity Un-Utilized Facility
* 2016 committed CAPEX includes the final stage of Tivoli acquisition and increased
shareholding in the hotel portfolio in Africa * Incremental capital increase from MINT-W5 exercise, assuming 100% MINT-W5 conversion
Corporate Information 36FIVE-YEAR ASPIRATIONS
2021F
> 250 hotels
> 300 residences built
1Q17 > 450 timeshare units
> 3,400 restaurants
155 hotels > 500 retail shops & POS
2009 132 residences built to (> 39,000 Sqm)
date
165 timeshare units
30 hotels 2,017 restaurants
1,112 restaurants 329 retail shops & POS
292 retail shops & POS (26,910 Sqm)
(14,275 Sqm)
6.6bn 2021F
NPAT 2016
(THB)
1.4bn
2009
Corporate Information 37MINT’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
Expand Through Existing and
Brands, With Additional Maximize Asset Value
Future Strategic Investments &
Contribution From Selected and Productivity
Acquisitions
International Brands
Growth
Pillars Strengthening of Hub /
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%
Corporate Information 38You can also read
