COMPANY PRESENTATION - May 2021 - SET
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
COMPANY PRESENTATION – May 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 1Q21 in Review Minor Hotels Minor Food Minor Lifestyle Corporate Information Response to COVID-19 Long-term Post-COVID World
NH Collection Prague Carlo IV
1Q21 IN REVIEW
1Q21 Key Highlights
Continued Short-term Longer term with Continued discipline Longer-term plans
Volatility in 1Q21 increasingly positive outlook response to COVID-19 post-COVID
With new waves of the Vaccination is being distributed Cost and CAPEX reduction Both Minor Hotels and Minor
pandemic, core loss widened globally, with over 1.3 billion continues to be a priority to Food will adapt to changes in
both y-y and q-q to THB 5.2 shots administered in 174 minimize cash outflows and customer behavior amidst
billion countries reduce breakeven point COVID-19
Minor Food continued to be In particular, vaccination in Consequently, cash outflow Minor Hotels will focus on
profitable during the quarter Europe has been accelerated, declined to THB 1.1 billion per expansion of management
and is expected to reach 70% month in 1Q21 vs THB 1.6 billion contracts, turnaround of NHH
Minor Hotels’ performance by September 2021 in 4Q20 and digital transformation to
remained weak because of new improve customer experience
waves of COVID-19 in Europe To prepare for reopening and Proactive balance sheet
and Thailand recovery in tourism, MINT has management is being pursued at Minor Food will continue to
ensured that hotel staff receive both MINT and NHH level develop its delivery platform,
Management letting rights vaccination as soon as digital transformation and
remained profitable at EBITDA possible, including Thailand, TRIS reaffirmed “A” rating for product innovation
level the Middle East and the MINT and its senior unsecured
Maldives debentures
Momentum of residential sales
was strong, resulting in mixed- Asset rotations are underway and
use’s profits at the NPAT level on schedule
5
1Q21 Y-Y Performance Recap
In 1Q21, MINT’s core revenue declined by 44% y-y amidst the new waves of COVID-19 pandemic, compared to 1Q20 where the performance of the
first two months were minimally impacted by the virus. MINT reported net losses, primarily from Minor Hotels especially in Europe and Minor
Lifestyle, while Minor Food reported a turnaround to net profit (for three consecutive quarters). MINT recorded impairment from COVID-19 of THB
2.3 billion in 1Q21.
REVENUE 1Q21 REVENUE CONTRIBUTION
Minor
THB million -44% y-y
Lifestyle
25,000 22,533 22,421 6% Minor
20,000 -113 Food
-1,894
15,000 12,499 +119 12,618 41%
THB
10,000 -7,252 -541 -235 12,499
5,000 million
Minor
0 Hotels
1Q20 Non-core 1Q20 Minor Hotels NHH Minor Food Minor 1Q21 Non-core 1Q21 53%
Reported Items Core excl NHH Lifestyle Core Items Reported * Excludes non-core items
NET PROFIT
THB million NM
0
-2,000 (1,774)
-4,000 -1,400 (3,173) -113
+257 +50
-6,000 -2,232 (5,211)
-8,000 -2,039 (7,250)
1Q20 Non-core 1Q20 Minor Hotels NHH Minor Minor 1Q21 Non-core 1Q21
Reported Items Core excl NHH Food Lifestyle Core Items Reported
6
International Presence
With a solid diversification strategy implemented, MINT’s footprint was in 63 countries at the end of 1Q21 across its hospitality and restaurant
businesses.
Minor Hotels
Minor Food
Combination
REVENUE CONTRIBUTION
100%
75% 43%
63% 59% International
50% Thailand
25% 57%
37% 41%
0%
2014 2020 1Q21
*Excludes non-core items
7
Banana Island Resort Doha by Anantara
MINOR HOTELS
Minor Hotels – Financial Highlights
1Q21 revenue declined by 58% y-y, with the new waves of COVID-19 in Europe and Thailand, impacting especially the owned and leased portfolio.
MLR business in Australia and the Maldives hotels continued to be resilient, while mixed-use business improved significantly from the strong
momentum of residential sales. Continued cost cutting measures helped reduce flow-through of revenue shortfall, although EBITDA and NPAT
turned to losses, largely attributable to NHH. Nevertheless, Australia reported positive EBITDA, while mixed-use business was profitable at the NPAT
level, both for two consecutive quarters.
MINOR HOTELS – FINANCIAL PERFORMANCE PERFORMANCE SNAPSHOT – BY BUSINESS
-58% y-y 1Q21 Revenue Change (THB)
15,770 Q-Q Y-Y
2,070
Owned &
THB 6,624 Leased 31% 73%
million 13.1%
-602 -2,998 -5,343 Management
Letting Rights 2% 1%
Managed
1Q20 1Q21 1Q20 1Q21 1Q20 1Q21 Hotels 1% 15%
Revenue EBITDA NPAT
Mixed-Use
Business 76% 38%
* The financials above reflect performance from operation, and therefore exclude non-core items.
BUSINESS PERFORMANCE SNAPSHOT – BY GEOGRAPHY
Thailand Europe Australia & Maldives & The Americas
New Zealand The Middle East
1Q21 Q-Q 53% 25% 3% 27 50%
Revenue
Change
(THB) Y-Y 29% 78% 1% 14% 32%
9
Minor 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 also expects its diversification to positively help the recovery process from COVID-19.
Investment
Management
Combination
New Destinations in Pipeline
Hubs
REVENUE CONTRIBUTION
100%
33%
75% International
87% 77%
50% Thailand
67%
25%
13% 23%
0%
2014 2020 1Q21
* Excludes non-core items
10Minor Hotels’ Portfolio
In terms of business model, owned and leased business contribute over half of Minor Hotels’ revenue in 1Q21. In terms of geography, Europe is the
major contributor with about 1/3 of Minor Hotels’ revenue (although lower than normal because of first quarter being Europe’s low season, and
the new waves of COVID-19), with Thailand and Australia & New Zealand as the second and third largest contributors.
SYSTEM-WIDE ROOM CONTRIBUTION SYSTEM-WIDE ROOM CONTRIBUTION
By Ownership By Geography
MLR Middle East & Asia
10% Africa 7% 10%
Owned Oceania
Managed 25% 9%
16%
75,168 Americas 75,168
JV Rooms* 11% Rooms*
2%
Leased * Entire portfolio including Europe * Entire portfolio including
47% temporarily closed hotels 63% temporarily closed hotels
** As at end of Mar 2021 ** As at end of Mar 2021
1Q21 CORE REVENUE CONTRIBUTION 1Q21 CORE REVENUE CONTRIBUTION
By Business By Geography
Mixed-use Others
12% Thailand
24% Maldives & 23%
Middle East
THB Owned & 7%
6,624 Leased
million 52% Australia &
MLR New Zealand
20% 20%
Europe
Managed Americas 34%
4% 4%
11Owned & Leased Hotels
Number of rooms of the entire owned & leased hotel portfolio remained flat y-y, but increased slightly by 3% from 1Q19. Systemwide RevPar
declined by 76% y-y, as lockdown in Europe only started in March 2020. In addition to first quarter being traditionally the lowest season for
European portfolio, many geographies including Thailand and Europe continued to experience COVID-19 outbreak during 1Q21. With negative
RevPar growth, revenue of owned & leased hotels declined by 73% y-y in 1Q21.
SYSTEMWIDE QUARTERLY OPERATIONAL STATS*
+3% vs 1Q19 -51% vs 1Q19 -23% vs 1Q19 -83% vs 1Q19
Flat y-y -32% y-y -24% y-y -76% y-y
65%
54,685 54,539 3,748 3,810
52,978 46% 2,880 2,444
1,752
14% 415
1Q19 1Q20 1Q21 1Q19
1Q19 1Q20
1Q20 1Q21
1Q21 1Q19
1Q19 1Q20
1Q20 1Q21
1Q21 1Q19
1Q19 1Q201Q20 1Q21
1Q21
No of Rooms Occupancy ADR (THB) RevPar (THB)
* Entire portfolio including temporarily closed hotels
MONTHLY REVPAR TREND – ENTIRE PORTFOLIO*
1%
-6%
Monthly Systemwide 2021 RevPar Growth
vs 2019 - THB
-70%
-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
12Owned Hotels – Thailand & Maldives
The two largest geographies for Minor Hotels outside of Europe are Thailand and the Maldives. Hotels in Thailand continued to cater to domestic
tourists, alternative state quarantine and hospitel guests as the border remained closed. Thailand portfolio, especially hotels in the provinces, were
impacted by the new wave of the virus during 1Q21. Hotels in the Maldives reopened at the end of September, with continuous positive trend since
then. In many months, RevPar of the Maldives hotels was almost back to the pre-COVID level.
OPERATIONAL STATS – THAILAND (ORGANIC) OPERATIONAL STATS – MALDIVES (ORGANIC)
-62% vs 1Q19 -49% vs 1Q19 -87% vs 1Q19 -16% vs 1Q19 -1% vs 1Q19 -24% vs 1Q19
-33% y-y -49% y-y -81% y-y -3% y-y -3% y-y -9% y-y
82% 7,301 7,322 5,951 73%
60% 1,134 1,151 1,122 829
3,889 57% 693 634
53% 3,752
20% 753
1Q19 1Q20 1Q21 1Q19 1Q20 1Q21 1Q19 1Q20 1Q21 1Q19 1Q20 1Q21 1Q19 1Q20 1Q21 1Q19 1Q20 1Q21
Occupancy ADR (THB) RevPar (THB) Occupancy ADR (USD) RevPar (USD)
18%
-3% 5% -8%
-41% -38% -5%
-71% -68% -73% -20% -20%
-79% -82% -79% -79% -81%
-87% -81% -80% -44%
-97% -95% -53%
-82% -66%
-94% -92% -88% -99%
-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
13Owned & Leased Hotels – Europe & The Americas
Hotels in Europe & the Americas are the largest contributor to owned & leased hotel portfolio. 1Q21 RevPar of Europe & the Americas hotels
declined by over 70% in Euro term both y-y and compared to 1Q19 pre-COVID level, amidst the continued spread of the virus in Europe since the
end of August 2020. Situation in Latin America and Southern Europe saw an improving trend, while mobility in Northern Europe remained
restricted during the quarter. Given that the majority of customers in Europe are intra-European travelers, the portfolio is expected to turnaround
quickly once the vaccines are widely distributed, which is expected to be by September 2021.
OPERATIONAL STATS – EUROPE & THE AMERICAS (SYSTEM-WIDE) GEOGRAPHICAL BREAKDOWN
-51% vs 2019 -26% vs 2019 -84% vs 2019
Americas
-32% y-y -31% y-y -78% y-y 10%
Central Spain
65% 95 101 1Q21 Europe 44%
70 62 13%
46% 46 Revenue
Contribution Benelux
14% 10 11%
1Q19 1Q20 1Q21 1Q19 1Q20 1Q21 1Q19 1Q20 1Q21 Italy
22%
Occupancy ADR (EUR) RevPar (EUR)
9%
3%
-70% -85%
-71% -64% -74% -79% -87%-83% -70% -66% -67%
-84% -83% -85% -87%
-99% -98% -87% -86%
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 1Q21 y-y System-wide RevPar Decline
Note: Europe & the Americas include hotels under NHH portfolio and hotels in Portugal and Brazil 14Asset-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. Monthly RevPar performance in 2021 compared to 2019
of both MLR and managed hotels portfolio started to surpass 2020 performance vs 2019 in March, signifying improving trend. EBITDA of MLR
continued to be positive in 1Q21.
MANAGEMENT LETTING RIGHTS MANAGED HOTELS
-8% vs 2019 -20% vs 2019 -13% vs 2019 -7% vs 2019 -61% vs 2019
-11% y-y -5% y-y +8% y-y -2% y-y -45% y-y
148
7,000 7,180 6,408 124 118 3,188 13,284 12,626 12,392 3,172
2,558 2,768 2,234
1,236
1Q19 1Q20 1Q21 1Q19 1Q20 1Q21 1Q19 1Q20 1Q21 1Q19 1Q20 1Q21 1Q19
1Q19 1Q20
1Q20 1Q21
1Q21
No of Rooms RevPar (AUD) RevPar (THB) No of Rooms System-wide RevPar (THB)
19% 5%
4% -5% -11%
-15%
-1% -53%
-9% -61%
-26% -35% -41% -30% -29% -33% -54% -57% -65%-54%
-37% -47% -63% -67% -55% -62% -56%
-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
15Hotel Expansion Pipeline – 61 Hotels; 12,362 Rooms
2021F 2022F 2023F 2024F-2025F
• Ubud, Bali, Indonesia* 71 rms • Fares Island, Maldives* 200 rms • Sydney, Australia 254 rms
• Nice, France 152 rms • Frankfurt, Germany 428 rms
• Khao Lak, Thailand 328 rms • Monterrey, Mexico 120 rms
OWNED & LEASED
• 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
• Hannover, Germany 89 rms
• Hamburg, Germany 136 rms
9 Hotels / 1,518 Rooms 6 Hotels / 1,484 Rooms 1 Hotel / 254 Rooms
16 Hotels / 3,256 Rooms
* Note: Joint-ventured properties
• Nanjing, China 120 rms • Sharjah, UAE 233 rms • Phi Phi Island, Thailand 107 rms • Riyadh, Saudi Arabia 163 rms
• Ras Al Khaimah, UAE 174 rms • Cam Ranh, Vietnam 324 rms • Ho Tram, Vietnam 410 rms • Yangon, Myanmar 250 rms
• Doha, UAE 292 rms • Ho Chi Minh City, Vietnam 217 rms • Savanne, Mauritius 156 rms • Phan Thiet, Vietnam 516 rms
• Dubai, UAE 35 rms • Busan, Korea 570 rms • Sifah, Oman 300 rms • Yangon, Myanmar 221 rms
• Krabi, Thailand 83 rms • Doha, Qatar 228 rms • Kota Kinabalu, Malaysia 386 rms Others • Hangzhou, China 54 rms
• Cam Ranh, Vietnam 397 rms • Panama, Panama 83 rms • Hangzhou, China 166 rms
• Nha Trang, Vietnam 280 rms • Santiago, Chile 146 rms • Fortaleza, Brazil 130 rms
MANAGED / MLRS
• Phnom Penh, Cambodia 35 rms Others • Zhuhai, China 100 rms • Phuket, Thailand 500 rms
• Muscat, Oman 206 rms • Sydney, Australia 266 rms
• Nairobi, Kenya 120 rms • Guadalajara, Mexico 120 rms
• Bahia, Brazil 50 rms • Aguascalientes, Mexico 105 rms
• Chengdu, China 201 rms • Mexico City, Mexico 144 rms
• Hangzhou, China 108 rms • Lima, Peru 265 rms
• Chengdu, China 197 rms
• Lima, Peru 164 rms
• Iquique, Chile 135 rms
• Feira de Santana, Brazil 207 rms
• Murano, Italy 104+38 rms
19 Hotels / 2,946 Rooms 8 Hotels / 1,901 Rooms 13 Hotels / 3,055 Rooms 5 Hotels / 1,204 Rooms
45 Hotels / 9,106 Rooms
** MINT is in the process of reevaluating the opening dates of the hotels in the pipeline. 16Mixed-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 residential sales,
revenue of mixed-use business more than doubled y-y, resulting in profitable bottom line at the NPAT level for the second consecutive quarter. Note
that AVC also witnessed positive NPAT for two consecutive quarters.
RESIDENTIAL DEVELOPMENT ANANTARA VACATION CLUB
CURRENT PROJECTS GROWING MEMBERSHIP
Layan Residences by Launched +5%
15 luxury pool villas 100%-owned
Anantara, Phuket 2015 Others China
15,623 24% 41%
14,835
Avadina Hills Launched Malaysia
16 luxury pool villas 50% JV
by Anantara, Phuket 2018 7%
Hong Kong
7%
Anantara Chiang Mai 44 units in 7-storey Launched
Serviced Suites condominium building 50% JV 2016 Singapore
1Q20 1Q21 7% Thailand
14%
No of Members
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
+5%
Bali
253 Sanya
PIPELINE 241 Samui
Phuket
Anantara Ubud To launch Bangkok
Residences, Indonesia 15 residential villas 50% JV 2021 Chiang Mai
To launch 1Q20 1Q21 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.
17MINOR FOOD
Minor Food – Financial Highlights
Despite the y-y decline in Minor Food’s revenue in 1Q21 from the new wave of COVID-19 in Thailand, EBITDA increased by 17% y-y, attributable to
effective cost control measures across all hubs. Consequently, bottom line of Minor Food turned around from net loss in 1Q20 to net profit of THB
160 million in 1Q21. Margins have also improved. Note that Minor Food has seen profitable NPAT for three consecutive quarters amidst COVID-19.
FINANCIAL PERFORMANCE OPERATIONAL STATS
-10% y-y +17% y-y NM
+5% vs 2019
5,664 5,123
1,079 Flat y-y
919 2,362 2,365
THB 160 2,254
million
16.2% 21.1% 3.1% 5.3%
-97
-4.0% -5.8%
-10.5% -15.3% -12.4%
1Q20 1Q21 1Q20 1Q21 1Q20 1Q21
1Q19 1Q20 1Q21 1Q19 1Q20 1Q21 1Q19 1Q20 1Q21
Revenue EBITDA NPAT
No of Outlets SSSG TSSG
* The financials above reflect performance from operation, and therefore exclude non-core items
• Same-Store-Sales: Although performance of China and Australia hubs improved
66.7%
in 1Q21, the overall SSSG was dragged by Thailand hub, with the new wave of TSSG
COVID-19. Nevertheless, m-m trend is seeing an improvement.
• Outlet expansion: 1Q21 network growth was flat y-y. The expansion of Bonchon
and Coffee Journey outlets in Thailand and Riverside outlets in China was offset 2.6% SSSG
by rationalization of outlets in Australia. 22.6%
-16.0%
• Total-System-Sales: With stable number of outlets y-y, TSSG tracks SSSG trend. -20.0%
-5.3%
• April stats improved significantly, driven by China and Australia hubs, while -21.6% -20.4%
Thailand was under pressure from the third wave of the virus. Jan Feb Mar Apr
19Minor 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 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 1Q21
* Excludes non-core items
20Minor 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 6%
5%
Franchised
50% Australia
15%
2,365 2,365
Outlets Owned Outlets
50%
Thailand
74%
* As at end of Mar 2021 * As at end of Mar 2021
1Q21 CORE REVENUE CONTRIBUTION 1Q21 CORE REVENUE CONTRIBUTION
By Business By Geography
Franchised Others
6% 11%
China
THB 20%
5,123
million
Owned Thailand
94% Australia 57%
12%
21Operational Stats by Hub
SSSG of China hub surged strongly in 1Q21, partly because of 2020 low base with the lockdown and partly because of solid domestic consumption.
Australia hub is seeing an improving trend, with both SSSG and TSSG turning positive in March. Performance of Thailand hub, however, remained
subdued in 1Q21 because of the new wave of COVID-19. Amidst challenging macro backdrop, 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
182.6% 2.0%
5.5%
0.5% 75.1%
-2.1% -2.7%
-6.0% -6.9% 21.6% -5.1%
2.5%
-7.9%
-12.5%
-27.5% -27.4% -49.4% -59.1%
1Q19 1Q20 1Q21 1Q19 1Q20 1Q21 1Q19 1Q20 1Q21 1Q19 1Q20 1Q21 1Q19 1Q20 1Q21 1Q19 1Q20 1Q21
SSSG TSSG SSSG TSSG SSSG TSSG
20%
TSSG* 2600%
700% 500%
600% TSSG*
400%
0% 500%
300% SSSG
400%
SSSG 300% 200%
-20% 100%
200%
100% TSSG* 0%
-40% 0% SSSG
-100%
Jan Feb Mar Apr Jan Feb Mar Apr Jan Feb Mar Apr
* 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
22MINOR LIFESTYLE
Minor Lifestyle
1Q21 revenue of Minor Lifestyle declined by 24% y-y, primarily from the soft fashion business amidst the new wave of COVID-19. With cost savings
in personnel, rental fee, logistics and advertising & promotion across Minor Lifestyle, EBITDA turned positive and net loss improved in 1Q21.
FINANCIAL PERFORMANCE OPERATIONAL STATS
-24% y-y 486 473 428
986
751 45
THB
million 8.0%
6.0% -1.3%
-7 -27 -32.0% -30.1% -29.5% -34.3%
-78
1Q19 1Q20 1Q21 1Q19 1Q20 1Q21 1Q19 1Q20 1Q21
1Q20 1Q21 1Q20 1Q21 1Q20 1Q21
Revenue EBITDA NPAT No of Shops SSSG TSSG
• Retail trading: revenue declined by 31% y-y, 300% TSSG
Contract
Manufacturing primarily from the fashion business because of 200%
37% weak consumer confidence and new wave of
THB 100%
751 COVID-19.
million 0% SSSG
Retail
Trading
• Contract manufacturing: revenue slightly
63% declined by 6% y-y, also from the weak consumer -100%
confidence. Jan Feb Mar Apr
24CORPORATE 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’s equity base increased by approximately THB 20 billion with the issuance of perpetual bond and rights in 2020. MINT-W7,
together with 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
2.00 1.95
THB million 1.88
1.75
1.63
10,000 1.50 Internal
1.25 Policy
8,000 1.00
1Q20 2Q20 3Q20 4Q20 1Q21
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 1Q21 is THB 22,079 million
Equity
0 150,000 69,420
2020 2021F 2022F 2023F 2024F 2025F
100,000
Debt Equity**
Minor Lifestyle 50,000 135,121 14,553
Minor Hotels Debt
0 20,982
Minor Food Outstanding Debt* & Equity Un-Utilized Facility
* Outstanding debt exclude lease liabilities as per covenant calculation definition
** Assume 100% conversion of MINT-W6 (at exercise price of THB 43.00 per share) & MINT-W7
* CAPEX plan excludes any potential divestments (at exercise price of THB 21.60 per share) 26Anantara Desaru Coast Residences RESPONSE TO COVID-19
Response 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
28Resuming 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. Since then, MINT has cautiously resumed its operations as quickly as possible. The strategy has been to keep hotel openings flexible
according to the volatile COVID situation, and reopen restaurant outlets that generate positive cash flows.
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr
News of Wuhan / Italy lockdown, Many countries start to loosen New waves of COVID-19, especially in Europe, Thailand and other
COVID- China followed by other lockdown measures & gradual countries and destinations
19 lockdown countries globally border reopenings
535 536 Closed
440 447
356 389 410 395 376 368 373 399 399 24%
MINOR HOTELS 247
No of hotels in 144
115 Operational
operation
76%
2,289 2,349 2,224 2,236 Closed
1,947 1,890 2,037 2,179 2,103 2,128 2,139 2,224 2,246 2,178 2,221 6%
1,521
MINOR FOOD
No of outlets in
operation Operational
94%
Closed
478 476 458 464 474 474 468 461 470 459 446 3%
439 428
MINOR LIFESTYLE 400
No of outlets in
operation 34 48
Operational
97%
29Minimizing Cash Burn & Preserving Liquidity – Cost Savings
Cost savings across business units and geographies remain a priority. MINT continues to implement cost savings measures across its three
categories, payroll, leases and other operating expenses.
Quarterly Y-Y Cost Savings
THB million
40,000 -9% -51% -34% -41% -36%
30,000
20,000
10,000
0
1Q19 1Q20 2Q19 2Q20 3Q19 3Q20 4Q19 4Q20 1Q20 1Q21
1Q21 Y-Y Cost Savings
Contribution of Savings Payroll Leases Other Opex
THB million
-45% -76% -22%
Other
Opex 10,000
31% Payroll 8,000
48% 6,000
4,000
2,000
Leases
21% 0
1Q20 1Q21 1Q20 1Q21 1Q20 1Q21
30Minimizing 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
31Minimizing Cash Burn & Preserving Liquidity
MINT’s free cash flow turned negative since February 2020 amidst the national lock-downs across the globe, and peaked in May 2020 during the
worst months of the pandemic. With cost-cutting measures and CAPEX suspension taking effect, cash burn rate started to see an improving trend
since June 2020. Cash on hand and working capital facilities combined is more than sufficient to support the operation, especially with improving
cash burn trend as the business environment improves and cost reduction initiatives continue to be implemented.
11.0 -24.2 -6.4 -8.7 -4.4 -4.7 -3.2 -0.7 -1.8 -0.7
Free CF
Cash on Hand
THB billion
(after Repayment
of Lease Liabilities)
THB 21 billion
14.7
Operating CF 1.9 0.8 0.6
0.7
0.1
+
-2.5 -0.8 -0.3 -0.3
-3.8* -2.5 -2.5
-3.3
-4.5 -3.6 -1.2 -0.5
-1.3 -1.0
-11.1 -2.7
-0.4 Working Cap
-5.0 -1.8
-0.3 Facilities
Repayment of -2.4 -0.5
Lease Liabilities -10.5
THB 21 billion
Net CAPEX
2019 2020 1Q20 2Q20 3Q20 4Q20 1Q21 Jan 21 Feb 21 Mar 21
*As at end of Apr 2021
* Net of Tivoli & Maldivian Asset Sales 32Breakeven Point Analysis – Minor Hotels
Since the peak of the pandemic, breakeven point of the overall portfolio 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. The geography whose operation has already exceeded the breakeven
point and is now profitable at EBITDA level is Australia & New Zealand.
40% - 48%
Thailand, Asia, 28%
Minor Hotels – Breakeven Occupancy Middle East & Africa 22% - 27% 24% - 30% 1Q21A
Occupancy
Indicative % at Property Level
10,826 keys / 15% of total system Before Cost-Cutting Peak of COVID-19 4Q20
49% - 59% 52% - 63%
38% - 46% 14%
34% - 42% Europe & Americas 33% - 40%
32% - 39% 1Q21A
21% Occupancy
1Q21A
Occupancy 46,164 keys / 65% of total system Before Cost Cutting Peak of COVID-19 4Q20
Before Cost Cutting Peak of COVID-19 4Q20 70%
43% - 53% 1Q21A
Australia & New 37% - 45%Occupancy
32% - 39%
Zealand
7,201 keys / 10% of total system Before Cost Cutting Peak of COVID-19 4Q20
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
33
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 – 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, pre-global distribution of vaccines, both at MINT and NHH level. In addition to existing and
announced initiatives, MINT will proactively seek additional measures to strengthen its balance sheet and financial position.
MINT NH Hotel Group
✓ A plan to issue corporate bonds of up to THB 6 billion ✓ Maturity extension of syndicated facility guarantied by
underway ICO from 2023 to 2026
✓ Affirmation by TRIS of the company and senior unsecured ✓ Extension of waiver on covenant testing:
debentures at “A” and subordinated perpetual o RCF: until Dec 2021 and relaxation in June 2022
debentures at “BBB+”, with negative outlook maintained
Liabilities o ICO: until June 2022
Management ✓ Asset rotation transactions to strengthen financial
position / repay debt ✓ Assessing alternatives for debts due in 2023
✓ Extension of waiver on covenant testing until end-2022 ✓ Asset rotation transactions to strengthen financial
position / deleverage
✓ Change of DE covenant calculation to exclude impairment
arising from COVID-19 from MINT’s equity until 2024
✓ Issuance of three tranches of warrants1, which will ✓ Announcement of issuance of rights offering2, with target
Strengthening of
strengthen MINT’s equity base by approximately THB 15 amount of EUR 107 million, to be completed in 2H21
equity base
billion over the next three years, until 2024
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%
2 Rights offering details to be announced subsequently
MINT remains committed as NHH’s major shareholder and will extend shareholders’ loan to NHH equivalent in the amount of its subscription portion of EUR 100 million in 2Q21. The loan will be capitalized through NHH’s rights offering process.
34Balance 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 MINT’s long-term asset rotation strategy
to further strengthen its balance sheet.
57 Identified Quality Assets 4-5 Selected Quality Assets
Value of Over THB 100 billion Value of THB 10-15 billion
MINT will enter into sales-and-leaseback and/or sales-and-manage-back transactions so that
the hotels continue to be a part of its portfolio.
Europe:
Spain: 5 Properties; 1,110 keys 4Q20 1Q21 2Q21 3Q21
Italy: 4 Properties; 779 keys ✓ MOU signed Expected
What
Portugal: 7 Properties; 1,580 keys
Transaction we said ✓ Due diligence being performed Completion
Netherlands: 6 Properties; 2,105 keys
Belgium: 5 Properties; 958 keys #1 Progress ✓ Due diligence completed
Germany: 2 Properties; 614 keys to date ✓ Completion on schedule
What ✓ MOU signed Expected
Thailand & CLMV: Transaction we said ✓ Due diligence being performed Completion
15 Properties; 2,621 keys
#2 Progress ✓ Due diligence being performed
to date ✓ Completion on schedule
o High quality assets in prime strategic locations
The Americas: o Proven high demand for the assets
4 Properties; 994 keys Indian Ocean: o Low interest rate environment resulting in acceptable yield
7 Properties; 918 keys
Australia: o Track record of past transactions
2 Properties; 264 keys
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
35Long-Term Post-COVID World
Minor Hotels: Post-COVID World
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
37Minor 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 38APPENDIX
Financial Performance - MINT
THB million -44%
22,421
14,887 14,128
Revenue 12,499
6,682
-88%
2,982
1,495
EBITDA 521
-51
-1,826
EBITDA Margin 13.3% -27.3% 10.0% -0.4% 4.2%
NPAT
-3,173
-4,783 -4,270 -5,211
-7,162
Net Margin -14.2% -107.2% -32.1% -30.2% -41.7%
1Q20 2Q20 3Q20 4Q20 1Q21
Minor Food Minor Hotels Minor Lifestyle
* The financials above reflect performance from operation, and therefore exclude non-core items
401Q21 Q-Q Performance Recap
With the prolonged COVID-19 situation, especially in Europe and Thailand, MINT’s financial performance declined q-q. The improving performance of
Minor Hotels in particular in the Maldives and the mixed-use business with the residential sales, partially helped offset the deterioration of the
performance of NH Hotel Group and Minor Food amidst the second wave in Thailand.
REVENUE
THB million -12% q-q
15,000 14,096 +32 14,128 +334
12,499 +119 12,618
-955 -720
10,000 -288
5,000
0
4Q20 Non-core 4Q20 Minor Hotels NHH Minor Food Minor 1Q21 Non-core 1Q21
Reported Items Core excl NHH Lifestyle Core Items Reported
NET PROFIT
THB million NM
0
-2,000
+550
-4,000 +1,321
(4,270) +97
-1,246 (5,211)
-6,000 (5,591) -342
-8,000 -2,039 (7,250)
4Q20 Non-core 4Q20 Minor Hotels NHH Minor Minor 1Q21 Non-core 1Q21
Reported Items Core excl NHH Food Lifestyle Core Items Reported
41Non-Core Items
Amount
Period Business Unit Non-recurring Items
(THB million)
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
Minor Hotels /
-12 Redundancy costs from cost cutting measures
Minor Lifestyle
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
Note: Include the impact of TFRS16
42You can also read
