Company Presentation - Nov 2017 - AVANI Hua Hin - Minor International
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AVANI Hua Hin Company Presentation – Nov 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
9M17 Performance Recap & Recent Updates
Minor Hotels
Minor Food
Minor Lifestyle
Corporate Information
Tivoli Carvoeiro, Portugal
9M17 Performance Recap
RESILIENT PERFORMANCE WITH QUICK TURNAROUND
9M17 net profit increased by 18% from 9M16 core net profit, due to the strong performance of all three businesses. The robust
multi-brand portfolios, geographical diversification and business agility contributed to MINT’s growth.
REVENUE
THB million Excl special gains
+7% y-y
45,000
42,570 43,066
40,000
40,410
35,000
30,000
9M16 Minor Hotels Minor Food Minor Lifestyle 9M17
NET PROFIT
THB million
6,000 Excl special gains
5,297
+18% y-y
4,000 3,804
3,229
2,000
0
9M16 Minor Hotels Minor Food Minor Lifestyle 9M17
Non-recurring items as detailed on page 37
9M17 Performance Recap 5
INTERNATIONAL PRESENCE
With solid diversification strategy, MINT’s presence was in 32 countries at the end of 9M17 across its hospitality and restaurant
businesses.
REVENUE CONTRIBUTION
100% Minor Hotels
13%
75% 50% 49% 52% International Minor Food
50% Thailand
87% Combination
25% 50% 51% 48%
0%
2008 2016 9M17 2021F
* Excludes non-recurring gains
MINT’s Footprint 6
WHAT’S NEW IN 3Q17 TO DATE
MINOR HOTELS MINOR FOOD
Hotel Investment Overseas Expansion of The Pizza Company
• Entered into a strategic JV to strengthen the • The Pizza Company celebrated the opening of its 100th
AVANI brand in Thailand with the launch of outlet outside of Thailand in 3Q17
AVANI Hua Hin in November 2017
CORPORATE / SUSTAINABILITY
Bond Issuance
Hotel Management • MINT successfully completed debentures issuance:
- THB 2 billion in October 2017 (THB 1 billion, 7-yr @
• Debuted the Tivoli brand in the Middle East 2.91% & THB 1 billion, 15-yr @ 3.93%)
with the opening of Souq Waqif Boutique - USD 50 million in July 2017 (10-yr @ 4.6%)
Hotels by Tivoli in Doha, Qatar
Warrant Conversion
• Last conversion of warrants in November 2017 resulted in an
increase in equity of THB 7,364 million, and dilution of only
Management Letting Rights in Australia 4.6% (THB 7,899 million received for the whole program)
• Introduced the AVANI brand in New Zealand DJSI & FTSE4Good Inclusion
with the launch of AVANI Metropolis Auckland
Residences in November 2017 • MINT was included in the 2017 Dow Jones Sustainability
Emerging Markets Index for the fourth consecutive year, and
the 2017 FTSE4Good Emerging Index for the second
consecutive year
Anantara Vacation Club
Cardamon Tented Camp
• Added 5 units in Phuket to the inventory pool • As part of MINT’s sustainability initiative, Cardamom Tented
of Anantara Vacation Club Camp was launched with the objective to help support eco-
tourism and promote conservation efforts in Cambodia
Recent Development 7
Minor Hotels Anantara Siam Bangkok
FINANCIAL PERFORMANCE – MINOR HOTELS
9M17 revenues of Minor Hotels grew by 11%, primarily from owned hotels, Oaks and real estate business. 9M17 EBITDA
increased by 9%, at a lower rate than revenue growth due to the pressure on profitability of the Tivoli hotels in Portugal because
of the renovation and their re-launching expenses in 1H17. 9M17 net profit increased by 21%, from the higher operating
leverage of organic operations with stable depreciation, together with the higher operating leverage nature of Anantara Vacation
Club.
+5% y-y +11% y-y KEY HIGHLIGHTS
THB million
22,618 Owned hotels • 9M17 revenue grew by 8% y-y, from
20,414
8,388 both hotels in Thailand and overseas,
7,078 7,237 7,344 6,659
7,571 56%
6,099 together with the consolidation of
of 9M17 hospitality
Revenue hotels in Zambia in 1H17 (organic
revenue
9M17 RevPar was +8% y-y).
+7% y-y +9% y-y
Oaks • 9M17 revenue increased by 4% y-y,
primarily from the RevPar growth of
5,014
5,473 20% 4% (in THB term).
of 9M17 hospitality
2,574
2,175 2,132 revenue
EBITDA 1,723 1,836
1,117 1,063
Management contracts • Revenue increased by 2% in 9M17
EBITDA y-y, primarily attributable to
Margin 30.7% 18.3% 23.8% 29.0% 30.7% 16.0% 24.2% 24.6% 24.2% 4% additional management fees from
of 9M17 hospitality newly managed hotels (organic
+20% y-y +21% y-y
revenue 9M17 RevPar was -3% y-y).
2,322
1,922
NPAT 1,124
1,361 Real estate • Revenue increased by 34% y-y in
889 673 9M17 from strong performance of
561
237 287 17% residential sales in 1Q17 and
Net of 9M17 hospitality Anantara Vacation Club in 9M17 after
Margin 15.9% 3.9% 7.8% 12.1% 16.2% 4.3% 8.9% 9.4% 10.3%
revenue the adjustment of its business
1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 9M16 9M17 model.
* The financials above reflect performance from operation, and therefore exclude non-recurring items as detailed on page 37
Minor Hotels 9
MINOR HOTELS - INTERNATIONAL PRESENCE
In recent years, MINT has implemented a solid diversification strategy. At the end of 9M17, MINT operates hotels and spas under
a combination of investment, joint-venture and management business models in 25 countries, with another 6 countries in the
pipeline over the next three years.
REVENUE CONTRIBUTION
100% 6%
75% 63% 64% International
68%
50% Thailand
94%
25%
37% 36% 32%
0%
2008 2016 9M17 2021F
* Excludes non-recurring gains
Investment
Management
Combination
New Destinations in Pipeline
Hubs
Minor Hotels 10SYSTEM-WIDE HOTEL OPERATIONS
Excluding new hotels and impact from exchange rate, organic RevPar of the entire portfolio increased by 2% in 3Q17, driven
primarily by owned hotels portfolio and Oaks. 3Q17 system-wide RevPar was flat compared to the same period last year,
primarily from newly-added overseas hotels, which are still in their ramping up stage.
NUMBER OF HOTEL ROOMS ADR
+2% y-y THB
No of Rooms
Organic excl FX System-wide
20,000 19,006 19,115 19,512 19,776 19,794 19,896 19,860 8,000 +1% y-y +1% y-y
6,431 6,397 6,338
15,000 5,963
MLR / Oaks 6,000 5,444
5,198 5,410 5,337 5,2075,443
10,000 Managed
Joint-venture 4,000
5,000
Owned
0 2,000
1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17
OCCUPANCY REVPAR
90%
THB
Organic excl FX System-wide
+2% y-y Flat y-y
80% 5,000
Organic 4,337 4,450 4,270
70% 70% 71% 3,858
+1% y-y 4,000 3,793 3,872 3,800
70% 67% 66% 3,540 3,388
64% 65% System-wide 3,327
70% Flat y-y 3,000
67%
65%
60%
2,000
50% 1,000
1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17
Minor Hotels 11OWNED-HOTELS OPERATIONS
9M17 HOSPITALITY Owned hotels contribute over half of hotel & mixed-use revenues in 9M17. Organic RevPar of owned hotels
REVENUE CONTRIBUTION
portfolio grew by 5% y-y in 3Q17, driven primarily by Thailand hotels and Tivoli branded portfolio in Brazil
56% and Portugal. Consequently, revenue of owned hotels increased by 4% y-y in 3Q17.
Owned-
hotels
NUMBER OF HOTEL ROOMS ADR
+Tivoli Victoria
+Tivoli Palacio de Organic excl FX System-wide
Sateais THB
+Tivoli Jardin +Anantara Kalutara +9% y-y +9% y-y
No of +Tivoli Lagos +Royal Livingstone
+Elements
Rooms +Tivoli Sintra by Anantara
Boutique Flat y-y 8,000
+Tivoli Coimbra +AVANI Victoria Resort & Spa
+AVANI Riverside Bkk Falls 6,733 6,863 6,791
8,000 6,143 6,096 6,095
7,084 7,118 7,118 7,050 7,039 6,000 5,572 5,568 5,519
7,000 6,566 6,566 5,009
6,000
4,000
5,000
4,000 2,000
1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17
OCCUPANCY REVPAR
90% THB Organic excl FX System-wide
Organic
6,000 +5% y-y +4% y-y
-3% y-y
80% 73%
70% 4,208 3,907 4,253 4,206
4,063 4,041
70% 63% 4,000 3,529 3,445
60% 62% 61% 3,114 3,445
56% 69%
60%
62% System-wide 2,000
58% -4% y-y
50%
40% 0
1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17
* Change in 1Q16 & 2Q16 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 12OWNED-HOTELS OPERATIONS – THAILAND
9M17 OWNED HOTEL REVENUE
BY GEOGRAPHY Thailand hotels continue to be the largest contributor to the owned hotels segment, with
Africa, 9% Others, 6% revenues accounting for almost half of owned hotels revenues in 9M17. Thailand will continue to
Maldives, 6% Thailand, be an attractive destination for tourism with its diverse attractions, well-developed infrastructure
Brazil, 9%
49% and strategic location.
Portugal, 21%
BANGKOK KEY HIGHLIGHTS
RevPar Growth Organic
(y-y) -3% -8% +2% -3% +4% +21% +19% Thailand • International tourist arrivals into Thailand
demonstrated consistent growth of 6% y-y in 3Q17.
THB
6,000 5,178
5,103 5,048
• Minor Hotels continued to grow with the industry, with
4,367 4,240 4,580 4,573 room nights growing at 4% y-y in 3Q17, driven by East
3,923 4,098 3,764 Asia (China, Korea and Japan) and Middle East.
4,000 3,173 3,596
2,717 81% 3,294 82%
76% 75% 72% • Performance of Minor Hotels’ portfolio in Thailand
62% 70%
2,000 maintained its strong momentum in 3Q17, with RevPar
of owned hotels increasing by 11% y-y.
0
1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 • RevPar of owned hotels in Bangkok continued to show
Bangkok
THAILAND PROVINCES strong performance with an increase of 19% y-y in
Organic 3Q17.
RevPar Growth
(y-y) +11% +4% +6% +2% +1% +9% +5% • The RevPar growth was driven primarily by the ramping
THB up of AVANI Riverside Bangkok, with its second year of
10,000 9,132 9,257 operation, and the double-digit increase in RevPar of
8,355 7,229
8,000 7,188 6,175 Anantara Siam Bangkok and The St. Regis Bangkok.
5,956 6,125 5,582 78% 6,359
79% 73%
6,000 67% 70% 67% 69%
4,015 4,311 4,370 4,535
4,000 Thailand • RevPar of hotels in the provinces increased by 5% y-y in
Provinces 3Q17, attributable to hotels in Chiang Rai, Phuket,
2,000
Samui and Hua Hin.
0
1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17
% Occupancy ADR RevPar
Minor Hotels 13OWNED-HOTELS OPERATIONS – OVERSEAS
9M17 OWNED HOTEL REVENUE
BY GEOGRAPHY In 3Q17, RevPar of owned overseas hotels increased by 2% y-y, driven by hotels in Brazil and
Africa, 9% Others, 6% Portugal. Maldives continued to be a fragile market, especially during its low season, while
Maldives, 6% Thailand, hotel in Botswana, Africa went through its renovation program during the quarter.
49%
Brazil, 9%
Portugal, 21%
OVERSEAS KEY MARKET HIGHLIGHTS
RevPar Growth Organic
(y-y) -48% -18% +11% -35% +8% +11% +2% Portugal • Overall hotels in Portugal saw consistent RevPar growth
in 3Q17.
THB
6,838 6,621 • Excluding the two rebranded hotels (Anantara
6,021 5,817 Vilamoura Algarve and AVANI Avenida Liberdade
6,000 5,643 5,569
4,875 Lisbon), hotels under the Tivoli brand in Portugal
4,217 4,311
4,000 2,952 72% 3,284 reported strong RevPar growth of 14% in 3Q17, driven
2,711 3,148 65%
2,903 61% 59% primarily by rate increases of the newly renovated
48% 48% 46%
2,000 hotels.
Brazil • RevPar of hotels in Brazil continued to show double-digit
0
growth, driven by both occupancy (Tivoli Mofarrej Sao
1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17
Paulo) and ADR (Tivoli Ecoresort Praia do Forte Bahia).
% Occupancy ADR RevPar
Maldives • Maldives portfolio was still fragile in the low season of
QUARTERLY ORGANIC REVPAR GROWTH (Y-Y) 3Q17, with high competition resulting in pressure on
ADR and weakening of USD against THB.
Portugal Brazil Maldives Africa • 9M17 RevPar declined by 7%.
27%
25% Africa • RevPar of hotels in Africa declined by 4% in 3Q17
18% 22% because of the renovation of AVANI Gabarone in
Botswana.
7% 6%
5% • Hotels in Zambia and Namibia continued to report
-6% -5% -22% -14% -4%
positive RevPar growth in the quarter.
*Change in 1Q16 & 2Q16 stats because of retroactive classification of hotels in Zambia from
1Q 2Q 3Q 1Q 2Q 3Q 1Q 2Q 3Q 1Q 2Q 3Q JV hotels to owned hotels as a result of change in investment status effective 3Q16.
Minor Hotels 14OAKS’ OPERATIONS
9M17 HOSPITALITY
REVENUE CONTRIBUTION Oaks’ serviced-suites operation is the second largest segment in the hotel and mixed-use business, with 20%
revenue contribution in 9M17. Oaks continues to provide the hotel & mixed-use business with stable
performance throughout the year, compared to hotel operations which is more seasonal. Oaks’ 3Q17
20% revenues in THB increased by 2%, primarily from the increase in RevPar of 4% y-y in THB term.
Oaks
NUMBER OF MANAGED ROOMS ADR
No of THB AUD
Rooms Flat y-y THB
6,000 +1% y-y 190
7,000 4,772 4,830
4,592 4,515 4,581
6,347 6,339 6,328 6,363 6,338 4,327 4,235
6,257 6,360 180
4,000 179 181
6,000 180
164 174 170
171
5,000 2,000
165 AUD 160
+2% y-y
4,000 0 150
1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17
OCCUPANCY REVPAR
THB AUD
90% THB
+2% y-y 5,000 160
+4% y-y
80% 3,531 3,528 3,749 3,793 3,680
78% 79% 79% 4,000
77% 3,162 3,170
80%
75% 140
73% 3,000 141 142
137 140
134
2,000
70% 120
123
1,000 120 AUD
+5% y-y
60% 0 100
1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17
Minor Hotels 15MANAGED-HOTELS OPERATIONS
9M17 HOSPITALITY In 9M17, managed hotels contributed 4% of hotel & mixed-use revenues. Organic RevPar excluding foreign
REVENUE CONTRIBUTION
exchange impact of managed hotels portfolio declined by 6% y-y in 3Q17, primarily attributable to hotels in
4% Bali (potential volcano eruption), UAE and the absence of management fees from Huvafen Fushi and Desert
Management Palm following the sale of MINT’s 50% investment in PER AQUUM. As a result, 3Q17 revenue from
Contracts
management service declined by 10% y-y.
NUMBER OF HOTEL ROOMS ADR
+8% y-y Organic excl FX System-wide
No of +The +Loisaba +AVANI +Anantara Al Jabal
Residences Tented Camp Khon Kaen Al Akhdar, Oman -11% y-y -9% y-y
Rooms at Victoria, +Loisaba Star +AVANI +Al Baleed Salalah +Anantara THB
Tivoli Beds Deira Dubai by Anantara Guiyang
8,000 7,605 7,4577,034
5,000 4,619 6,886
4,533 4,484 4,619 6,291 6,068 6,065 5,7045,422
4,282 6,000 5,530
3,998 4,017
4,000
4,000
3,000
2,000
2,000 0
1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17
OCCUPANCY REVPAR
80% Organic excl FX System-wide
Organic THB -6% y-y -9% y-y
73%
+4% y-y 6,000 5,280
69% 5,416
70% 66% 4,952
4,244
62% 62% 70% 62% 4,000 3,741 3,788 3,757 3,558
3,417 3,460
59%
60% 63%
60% 2,000
System-wide
+1% y-y
50% 0
1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17
Minor Hotels 16HOTEL EXPANSION PLAN
Expansion inside and outside Thailand will contribute to revenue & profit in coming years.
HOTEL INVESTMENT MANAGEMENT CONTRACTS
• Hua Hin, • Bodhgaya, India* • Guiyang, China (218 rms) • Auckland, New
2017F Thailand* (78 rms) Zealand (370 rms)
(196 rms)
• Quy Nhon, • Koh Samui, • Barra Grande, Brazil (50 rms) • Queensland, Australia • Brasilia, Brazil • Doha, Qatar (102 rms)
Vietnam (25 Thailand • Shanghai, China (260 rms) (219 rms) (395 rms) • Beirut, Lebanon
rms) (58 rms) • Tunis, Tunisia (41 rms) • Doha, Qatar (110 rms)
• Qiandao Lake, China (120 rms)
(150 rms)
2018F • Lijiang, China (678 rms)
• Al Wakrah,
• Luang Prabang, Laos (53 rms)
Qatar (101 rms)
• Tozeur, Tunisia (93 rms)
• Desaru, • Fares Island, • Warangi, • Zhuhai, China (110 rms) • Zhuhai, China (300 • Recife, Brazil • Queensland,
Malaysia Maldives* Serengeti • Le Chaland, Mauritius (164 rms) rms) (200 rms) Australia (50 rms)
(103 rms) (200 rms) National • Busan, Korea (400 rms) • South Australia,
Park,
• Al Houara Tangier, Morocco
• Ubud, Bali, (150 rms) • Chiang Mai, Thailand Australia (278 rms)
Indonesia* Tanzania*
2019F (12 rms) • Sifah, Oman (198 rms) (49 rms) • Daegu, Korea
(70 rms) (144 rms)
• Zanzibar, Tanzania (150 rms) • Jebel Dhanna, UAE
(228 rms)
• Jebel Dhanna, UAE (60 rms)
• Dubai Creek, UAE (292 rms)
• Ras Al Khaimah, UAE (306 rms)
• Khao Lak, • Jeddah, Saudi Arabia (328 rms) • Savanne, Mauritius • Fortaleza, • Zhuhai, China
Thailand (130 rms) Brazil (130 rms) (100 rms)
(327 rms) • Dubai, UAE (372 rms) • Busan, Korea
2020F
• Ras Al Khaimah, UAE (150 rms)
(200 rms)
• Gammart, Tunisia
2021F (232 rms)
Total 9 Hotels / 1,069 Rooms 39 Hotels / 7,681 Rooms
* Note: Joint-ventured properties
In addition to the current pipeline, MINT expects to sign 8 management contracts by the end of 2017, and is evaluating opportunities to manage another 14 hotels and
management letting rights in Australia, Brazil, China, Cuba, Japan, Korea, New Zealand, Thailand and USA.
Minor Hotels 17REAL ESTATE – EXISTING RESIDENTIAL PROJECTS
9M17 HOSPITALITY
REVENUE CONTRIBUTION
MINT’s residential projects are part of the real estate business, which is considered a part of Minor Hotels.
The developments are next to MINT’s hotels and are usually branded MINT’s hotel brands. Below are the
17% current projects with inventories to be sold over the next several years.
Real Estates
LAYAN RESIDENCES BY ANANTARA, PHUKET ANANTARA CHIANG MAI SERVICED SUITES THE ESTATES SAMUI
Above a secluded cove of
powder-white sands and Inventory
crystal-blue waters, The 21%
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. 3 out of 6
● 15 uniquely designed pool penthouse units
villas 2% deposited & sold to date
● 44 units in 7-storey contract signed
● Up to 8 bedrooms, each condominium
with 21 meter private Inventory
Sold building A 49% joint-venture with Rani Investment, the
infinity pool 38%
62% project is 5 minutes from Maputo CBD.
● 65 to 162 sq.m. (one Inventory
● 1,313 to 2,317 sq.m. of to three bedrooms) 34% ● 18-storey residential tower, comprising
built-up area Sold 181 keys for rent and 6 penthouse units
● 29 units sold to date; 64%
● 9 units sold to date 1 unit reserved for sale
● 20,926 sq.m., 21-storey office tower
Minor Hotels 18REAL ESTATE – PIPELINE OF RESIDENTIAL & OFFICE PROJECTS
In order to ensure the continuity of revenue stream from residential sales in the coming years, MINT has prepared additional
pipeline of residential and office projects. Other residential projects will be selectively considered in various hotel destinations in
order to increase returns of the overall project.
AVADINA HILLS BY ANANTARA, PHUKET ANANTARA DESARU RESIDENCES
Located next to Layan A 60% joint-venture project
Residences by Anantara, with Destination Resorts and
Phuket, the project is a 50% Hotels Sdn Bhd, the project is
joint-venture with Kajima situated on beachfront land in
Corporation. the heart of Desaru Coast,
● 16 luxury pool villas Malaysia.
● 6-8 bedrooms ● 20 residential villas
● 2,158 to 3,251 sq.m. of ● 3-4 bedrooms
built-up area ● 290 to 600 sq.m. of built-
● Expected launch in 2018 up area
● Expected launch in 2019
ANANTARA UBUD RESIDENCES SILOM OFFICE
A 50% joint-venture project The project is a 40% joint-
with PT. Wijaya Karya Realty, venture with NYE Development.
the project is on the edge of a The property is located on
cliff with easy access to Silom Road, in the heart
Ubud’s town center. Bangkok CBD and is intended
to be used as Minor Group’s
● 15 residential villas
head office.
● 1-2 bedrooms
● 9,668 sq.m. of retail space
● 165 to 252 sq.m. of built-
up area
Sold ● 56,699 sq.m. of office
55% space
● Expected launch in 2019
● Expected launch in 2023
Minor Hotels 19REAL ESTATE BUSINESS – ANANTARA VACATION CLUB
9M17 HOSPITALITY
REVENUE CONTRIBUTION
Part of the real estate business, Anantara Vacation Club is another important contributor to Minor Hotels.
Growth of members are driven by four main markets – China, Thailand, Hong Kong and Singapore. With the
17% change of the sales model since 2015 which resulted in smaller package, accelerated cash flow, as well as
Real Estates lower bad debt and cancellation rate, AVC is seeing the turnaround of its performance since 4Q16. In 3Q17,
AVC revenues increased by 28% y-y.
TOTAL NUMBER OF MEMBERS MEMBERS PRIMARILY IN ASIA
Growth (y-y) +67% +40% +28% +15% +25% US, 1% Others, 10%
No. of Philippines, 2%
Members UAE, 2%
9,594 Australia, 2%
10,000 China, 39%
Taiwan, 3%
8,000
8,000 Japan, 4%
6,928
6,000 5,431
Malaysia, 8%
3,857
4,000
Singapore,
2,000 9%
Hong Kong, Thailand,
0
9% 11% As at Sep 2017
2013 2014 2015 2016 9M17
INVENTORY TO ACCOMMODATE GROWING MEMBERS GROWTH DRIVEN BY FOUR MARKETS
No. of Units 7 Destinations: China
10 Destinations No. of
Queenstown Members Hong Kong
Bali
500 >450 Thailand 6,504
Sanya
Samui 6,000 Singapore 5,553
400 Phuket 4,896
Bangkok +24%
300 4,000 3,731 +17%
Chiang Mai
+48%
200 160 179 2,460 +111%
137 +12%
106 119 2,000 +300% +38% +11%
+35%
100 +39% +5% +7% +25%
+23% +19%
+36% +12% +10% +10% +14%
0 0
2013 2014 2015 2016 3Q17 2021F 2013 2014 2015 2016 3Q17
Minor Hotels 20Minor Food
FINANCIAL PERFORMANCE – MINOR FOOD
9M17 revenue of Minor Food increased by 1%, attributable to the performance of Thailand and China hubs, together with smaller
developing operations such as the Middle East and India. EBITDA and net profit grew by 9% and 12% respectively, primarily from
the effective cost control of Thailand, China and Australia hubs, together with the increased shareholding in Riverside in China.
-2% y-y +1% y-y KEY HIGHLIGHTS
THB million
17,401 17,530 Total-system-sales • The Pizza Company, Burger King and
6,028 growth of BreadTalk (Thailand) were the top three
5,841 5,794 5,809
5,766 5,621 5,693 brands with highest total-system-sales
Revenue 5.7% growth in 9M17.
in 9M17
Outlet expansion • In 3Q17, BreadTalk (Thailand), Burger King
of and The Pizza Company achieved the
+4% y-y +9% y-y
fastest outlet expansion y-y (in terms of
3,167 6%
2,910 percentage growth).
1,051 1,138 in 9M17
982 933 1,012 1,018
876
EBITDA • In 9M17, Swensen’s, Dairy Queen, Burger
King, Riverside and BreadTalk (Thailand)
reported positive same-store-sales
EBITDA 18.0% 15.2% 17.0% 16.6% 18.9% 17.4% 17.9% 16.7% 18.1%
Margin growth.
+5% y-y +12% y-y Same-store-sales • The performance of Thai Express Group in
1,413 growth of Singapore continued to be soft amidst
1,260 challenging macro condition and
NPAT 540
-0.8% intensifying competition.
481 442
359 420 425 431 in 9M17
• The multi-brand portfolio, diversification
strategy, operational excellence and
Net disciplined cost control continued to help
Margin 8.2% 6.2% 7.2% 7.6% 9.0% 7.4% 7.8% 7.2% 8.1%
Minor Food weather the challenges in its
1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 9M16 9M17 key operating markets.
* The financials above reflect performance from operation, and therefore exclude non-recurring items as detailed on page 37
Minor Food 22MINOR FOOD - INTERNATIONAL PRESENCE
MINT operates four restaurant hubs: Thailand, Singapore, Australia and China. MINT’s restaurant presence is now in 18 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% 38% 46%
International
50%
81% Thailand
25% 59% 62% 54%
0%
2008 2016 9M17 2021F
* Excludes non-recurring gains
Owned
Franchised
Combination
Hub
Minor Food 23MINOR FOOD – OPERATIONAL PERFORMANCE
3Q17 total-system-sales of Minor Food grew 3.2%, primarily from outlet expansion of 6%, mostly in Thailand and Vietnam,
which was netted off by the closure of some outlets in Singapore. With the exception of China hub, all hubs reported soft same-
store-sales in 3Q17, primarily from weak macro backdrop.
SSS & TSS GROWTH RESTAURANT OUTLETS BY GEOGRAPHY
International 3,409
20%
Thailand
+6% y-y 39%
15% 1,996 2,042
11.3% 36% 36%
1,043
9.9%
8.8% 61%
10% 8.2% 33%
64% 64%
6.4% 67%
5.7%
2008 2016 3Q17 2021F
5% 3.0% 3.2%
2.3%
1.3%
0.9% RESTAURANT OUTLETS BY OWNERSHIP
-0.9% -1.0%
0%
-2.5% Franchised 3,409
Owned
+6% y-y
-5% 49%
1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 1,996 2,042
No. of 2,037 2,042
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 3Q17 2021F
Minor Food 24THAILAND HUB
9M17 RESTAURANT
REVENUE CONTRIBUTION Revenues from domestic operations remained the biggest contributor of Minor Food, accounting for 62% of
total restaurant revenue in 9M17. Diversification, product innovation and effective marketing strategy
62% afforded Minor Food to remain resilient amidst the domestic consumption slowdown, particularly during
Thailand the mourning period.
THAILAND’S SSS & TSS GROWTH RESILIENT OPERATIONS
Same-store-sales of Thailand hub slowed down temporarily in
3Q17 amidst the soft domestic consumption environment,
Continued to improve customers’ online ordering
experience across all channels – easy-to-use web page, live
together with exceptionally good performance in 3Q16 (SSSG of chat on both PC and mobile, Facebook ordering.
5.8%). Nevertheless, September 2017 monthly trend is already
showing positive same-store-sales growth. Effectively used online/digital advertising to partially
replace some of the TV commercials. As a result, marketing
With continued outlet expansion, total-system-sales growth of
Thailand hub was of 7.6% in 3Q17.
expenses declined by 8% y-y in 3Q17.
Captured wider range of customers with the launch of
20% Asian Twist Menus – Honey Teriyaki Chicken Steak and
Pork Steak with Jaew Sauce.
15% Successfully launched Durian Blizzard for the first time,
which resulted in double-digit same-store-sales growth in
10% September 2017.
Successfully introduced premium “Black Truffle Double
5%
Mushroom Swiss”, resulting in improving same-store-sales
growth in September.
0%
Consistently opened new outlets as part of the brand’s
-5% expansion plan.
1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17
Strategically expanded network of outlets, especially in
Same-Store-Sales Growth Total-System-Sales Growth serviced apartments and hotels (doubled the number of
outlets in apartments and hotels in 9M17).
Minor Food 25CHINA HUB
9M17 RESTAURANT
REVENUE CONTRIBUTION China hub remains one of MINT’s growth drivers as MINT is confident in the long-term prospects of the
14% country, supported by growing middle class and increased urbanization trend. With its recent increase in
China
shareholding of Riverside to 85%, together with the 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 showed an improving trend
in 3Q17, with monthly improvement in performance of Sizzler and
China hub is leveraging on technology by installing self-ordering
and self-payment apps, which will ultimately help improve sales
Thai Express, while Riverside continued to demonstrate positive and operational efficiency, as well as reduce human errors and
same-store-sales growth. labor costs.
Total-system-sales was slightly negative in 3Q17, primarily due to
temporary impact from relocation of some of Riverside outlets Partnership with third-party service providers will enable the
China hub to use big data to analyze consumer behavior and gain
during the lease-end period. insight on network planning, as well as targeted marketing
campaigns and communications.
25%
20%
New generation of
launched to better
Thai Express and Sizzler outlets will be
cater to the local taste and consumer
behavior.
15%
The hub will continue to expand outlets under the Riverside
brand.
10%
5%
0%
-5%
1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17
Same-Store-Sales Growth Total-System-Sales Growth
Minor Food 26AUSTRALIA HUB
9M17 RESTAURANT
REVENUE CONTRIBUTION Australia hub’s revenue contributed 14% of total restaurant business in 9M17. Australia hub has provided
Minor Food with stable profitability performance. Despite the temporary sales impact from the slowdown
of the domestic economy, stronger contribution from Veneziano, the coffee roasting business, helped drive
14%
Australia profitability of Australia hub in 9M17.
AUSTRALIA’S SSS & TSS GROWTH STABLE PERFORMANCE
Same-store-sales of Australia hub slightly declined in 3Q17 as the The Coffee Club in Australia has the strategy to improve its
overall macro environment in Australia remained fragile. products:
Total-system-sales declined at the same rate as same-store-sales
as Australia hub had minimal net outlet openings in 3Q17
o Focus on new product development especially the healthy
food category;
compared to 3Q16.
o Improve coffee offerings, from use of new machines,
enhanced barista training and trials of new coffee blends.
10.0% Australia hub will continue to expand its high-margin Veneziano
Coffee Roaster.
5.0% As Australian economy remains fragile, the hub will continue to
expand The Coffee Club internationally, especially in Thailand and
the Middle East.
0.0%
-5.0%
-10.0%
1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17
Same-Store-Sales Growth Total-System-Sales Growth
Minor Food 27SINGAPORE HUB
9M17 RESTAURANT
REVENUE CONTRIBUTION Like many other F&B operators in the market, Singapore hub has been impacted by the economic slowdown
and increased competition. While short-term focus is on cost efficiency and productivity, longer term strategy
is to improve its product offerings and implement effective customer segmentation in order to prepare for
8% the economic turnaround. The hub is also expanding the Thai Express brand overseas.
Singapore
SINGAPORE’S SSS & TSS GROWTH STRENGTHENING OF THAI FOOD PORTFOLIO
Same-store-sales of Singapore hub remained weak amidst the
challenging industry conditions.
Singapore operations will grow its delivery business through
partnerships with various third-party delivery operators, such as
Deliveroo, Food Panda, Uber Eats and Honest Bee.
Total-system-sales declined at a faster rate, as Singapore hub is in
the process of closing down non-performing outlets with an aim
to improve profitability (10 outlets in Singapore closed, or -15% Singapore hub will continue to focus on profitability improvement.
Initiatives include:
y-y).
o Implementation of technology and automated workflow and
0% processes, such as e-menus, automation of bank
reconciliation and sales recording from POS;
o Evaluation and selective closure of non-performing stores.
-5%
Thai Express franchising platform will be strengthened in order to
accelerate potential growth, especially outside of Singapore,
primarily in China and Vietnam.
-10%
-15%
1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17
Same-Store-Sales Growth Total-System-Sales Growth
Minor Food 28Minor Lifestyle
FINANCIAL PERFORMANCE – MINOR LIFESTYLE
9M17 revenue of Minor Lifestyle was up 12% y-y, primarily attributable to the retail trading business. EBITDA grew at a lower rate
of 7% y-y because of margin pressure from the contract manufacturing business and the ramping up of the recently launched
brands earlier in 2017. 9M17 net profit increased at a faster rate of 46% y-y, at a higher rate than the revenue and EBITDA growth,
because of the higher operating leverage gained from the stable level of depreciation.
KEY HIGHLIGHTS
+24% y-y +12% y-y
THB million
Total-system-sales • Total-system-sales growth was primarily
2,918
2,595 growth of attributable to Charles & Keith and
Revenue 964 963 1,037 Brooks Brothers, together with the
836 910 919
794 15.9% additional sales from new brands (Etam,
in 9M17 Radley, Anello and Joseph Joseph).
Same-store-sales • Charles & Keith and Pedro were the two
growth of brands in the portfolio that reported
+36% y-y +7% y-y
positive same-store-sales growth in
176 189 -1.4% 9M17.
85 91 in 9M17
EBITDA 65 70
52 54
40
Retail trading • 9M17 revenue from retail trading
increased by 18%, mainly from Charles &
EBITDA 8.8% 5.1% 6.2% 10.0% 6.7% 5.9% 6.8% 6.8% 6.5% 76% Keith and Brooks Brothers, together with
Margin
of 9M17 Minor Lifestyle additional sales from new brands.
+203% y-y +46% y-y revenue
69
38 47
34
24 27 Contract manufacturing • 9M17 revenue from contract
NPAT 18 manufacturing declined by 3%, from soft
1
9 24% performance of its key customers in
Net 1Q17. However, its performance
Margin 3.9% 0.1% 1.1% 3.7% 2.5% 2.0% 2.6% 1.8% 2.4% of 9M17 Minor Lifestyle
revenue showed improvements in 2Q17 and
1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 9M16 9M17 3Q17.
Minor Lifestyle 30MINOR LIFESTYLE – OPERATIONAL PERFORMANCE
The performance of Minor Lifestyle continues to show recovery, with same-store-sales growth of 4.3% in 3Q17, driven by Charles
& Keith. With store expansion of 21% y-y, primarily from the new additions – Etam, Radley, Anello and Joseph Joseph, total-
system-sales grew by 25.2% in 3Q17. Sales per sq.m. is seeing an improving trend y-y, signifying the higher efficiency of the
business.
SSS & TSS GROWTH SALES PER SQ. M.
THB
30%
25.2% 35,000
19.4%
20% 30,000
16.4%
26,014
25,000 25,238
8.8% 23,850 24,259 24,141
10%
6.5% 5.7%
4.2% 4.3%
3.2% 20,893 20,699
20,000
1.1%
0% -3.4%
0.4% 15,000
-0.1%
-8.5%
-10% 10,000
1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17
No. of No. of
Shops 307 300 292 327 329 339 354 Shops 307 300 292 327 329 339 354
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 31Corporate Information
CAPEX & BALANCE SHEET STRENGTH
In addition to committed CAPEX, MINT also set aside additional CAPEX for future investments and new opportunities in the
pipeline. MINT’s leverage ratio is in line with its internal policy and is expected to come down with increasing contribution from
both organic operation and recent acquisitions, together with new equity from warrant exercise. With its solid balance sheet,
MINT will mainly use its internal cash flow and debt financing to fund its CAPEX requirements going forward. 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
1.30x Internal
1.2 Policy
1.19x
5.0
12,000 1.0
0.8
4.0
9,000 0.6
3.0 0.4
1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17
6,000 Interest Bearing Debt Net Interest Bearing
2.0 to Equity Debt to Equity
3,000 BACK-UP FINANCING
1.0
THB million Note: Cash on hand as at end of 3Q17
100,000 was THB 4,305 million
- - 80,000 Shareholders’
2016A 2017F 2018F 2019F 2020F 2021F Equity
60,000 41,675
Minor Food Minor Hotels Minor Lifestyle
40,000 Equity*
Additional CAPEX (non-committed average per annum) Debt 7,364
for New Investments/Opportunities 20,000 54,018 Debt
25,856
EBITDA coverage on committed CAPEX 0
* 2016 committed CAPEX includes the final stage of Tivoli acquisition and increased Outstanding Borrowing & Equity Un-Utilized Facility
shareholding in the hotel portfolio in Africa, while 2017 committed CAPEX includes * Actual amount received upon the last conversion of MINT-W5 in Nov 2017 (Total amount
increased shareholding in Riverside and Avadina Hills by Anantara project received of THB 7,899 million for the entire program)
Corporate Information 33FIVE-YEAR ASPIRATIONS
2021F
> 250 hotels
> 300 residences built
3Q17 > 450 timeshare units
> 3,400 restaurants
155 hotels > 500 retail shops & POS
2009 132 residences built to (> 39,000 Sqm)
date
179 timeshare units
30 hotels 2,042 restaurants
1,112 restaurants 354 retail shops & POS
292 retail shops & POS (28,472 Sqm)
(14,275 Sqm)
6.6bn 2021F
NPAT 2016
(THB)
1.4bn
2009
Corporate Information 34MINT’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 35Appendix Benihana, AVANI Atrium Bangkok
NON-RECURRING ITEMS - 2016
MINT reported non-recurring items in 2016 as detailed below
AMOUNT
TIMELINE NON-RECURRING ITEMS
(THB MILLION)
490 • Gain from bargain purchase of hotels in Zambia
38 • Gain from bargain purchase of Tivoli hotels in Portugal
• Anantara Vacation Club’s (AVC) provision of doubtful account (recorded in SG&A),
4Q16 which is part of MINT’s prudent measures to conservatively provide for potential bad
-359
debts which may arise from the accounts receivable of Phase I, which was sold during
2010-2015
-223 • Oaks’ general administrative expenses and provision (recorded in SG&A)
• Gain from changing status of investment in some of the Oaks properties, which were
92
offset by;
3Q16
• Impairment charges of certain Oaks properties (recorded in SG&A, pre-tax), resulting
-136
in no material impact post-tax on core net profit in 3Q16
• Gain from changing status of investment in BreadTalk Group in Singapore, from
2Q16 136
available-for-sale investment to investment in associate
1Q16 1,932 • Gain from bargain purchase of the Tivoli Hotels & Resorts
Corporate Information 37You can also read
