COMPANY PRESENTATION - Nov 2019 - Minor International
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COMPANY PRESENTATION – Nov 2019
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
Highlights &
Performance Recap
Minor Hotels
Minor Food
Minor Lifestyle
Corporate Information
& Five-Year Strategy
Anantara Iko Mauritius
HIGHLIGHTS & PERFORMANCE RECAP
Highlights & Outlook
HIGHLIGHTS OUTLOOK
Strong 4Q19 Outlook:
• Recovery of Minor Hotels’ Thailand, Middle East &
• 3Q19 CORE NPAT +39% / LFL NPAT +67% Africa portfolio
• 9M19 CORE NPAT +9% / LFL NPAT +17% • NHH’s momentum continued
• Sales activities of residential sales & recovery of
Anantara Vacation Club
• The acquisition of Bonchon will provide upside growth
• Strategic asset rotation resulting in successful
for Minor Food
deleverage plan
• The transaction is accretive from day one, with
• Interest bearing debt declined by 10% to THB 112
potential to leverage on Minor Food’s platform &
billion at the end of 3Q19
operations
• D/E ratio declined to 1.35x at the end of 3Q19
• Minor Food’s transformation is underway
5
Investment in Bonchon
Bonchon is an international restaurant brand which is reputable for its Korean-style fried chicken and other Korean-inspired dishes. MINT
announced the investment in the existing outlets of Bonchon in Thailand, and is in discussion with the master franchise holder for the rights to
expand the brand further in the country.
BONCHON AT A GLANCE STORE LOCATION
• Bonchon today has 44 stores, with another 2 to be opened by the end
• The first Bonchon in Thailand opened its door in 2011 and, given its of 2019.
popularity, has been expanding rapidly ever since.
• With over 300 branches, Bonchon has established its footprint in 9
countries: Thailand, Philippines, Kuwait, Singapore, Bahrain,
Vietnam, USA, Cambodia and Myanmar. Nakhon Ratchasima: 1 store
Airport: 4 stores
• Bonchon in each country caters specifically to the local market’s
taste and lifestyle with unique menus and flexible store format.
THE INVESTMENT IN BONCHON Greater Bangkok: 38 stores
• MINT made the investment in Chicken Time, which operates over Pattaya: 1 store
40 outlets of equity-owned Bonchon stores in Thailand.
• The investment amount is THB 2 billion for 100% in Chicken Time.
• MINT is in the process of discussing with the holder of master
franchise rights to acquire the rights to further expand Bonchon
outlets in Thailand.
*As of October 2019
6
Investment Rationales
The investment in Bonchon is the opportunity for Minor Food to capture the fast-growing chicken market and the sizable Asian food market. The
provincial Thailand is still an untapped market for the brand, while delivery market continues to offer growth potential, both of which Bonchon can
leverage on Minor Food’s operating platform.
SIZABLE & HIGH GROWTH CONCEPT SIGNIFICANT OUTLET OPPORTUNITY
Market Size (THB billion) No of Outlets in Thailand
+229% 2008 2018 518
24 416
+196% 292
+104% 150-200*
10 +53%
7 9
6 56 109 62
3 4 4 44
Chicken Burger Pizza Ice Cream TPC SW SZ DQ BK TCC Bonchon
Source: Euromonitor & company estimate Data as at end of 3Q19 * Bonchon’s estimated addressable outlets
HIGH GROWTH POTENTIAL OF DELIVERY MARKET SUPERIOR PERFORMANCE & SCALABILITY
Market Size (THB billion)
• Bonchon’s best-in-class operational matrix:
10% CAGR
111
10% CAGR ‒ Payback period of less than one year for store openings
84
75
67 ‒ Store EBITDA margin significantly higher than Minor Food’s
52 56 60
• Ability to leverage on Minor Food’s operating platform to
accelerate growth trajectory, both in terms of physical outlet and
delivery service
2013 2014 2015 2016 2017 2018 2021F
Source: Euromonitor & company estimate
7
Comparables
Both transaction comparables and trading comparables of F&B companies have averaged between 10 – 13x in the past.
TRANSACTION COMPARABLES TRADING COMPARABLES - THAILAND
EV/EBITDA (x) EV/EBITDA (x)
15 14.8 14.0 14.8
12.3 Average 15 14.0
Average
11.0 13.0x 12.7x
10 10 9.2
5 5
0 0
Coffee Bean & OldTown KFC Thailand MAP Boga MINT MK Zen
Tea Leaf Berhad Thailand Adiperkasa
TRADING COMPARABLES - SEA
EV/EBITDA (x)
17.2
15
12.8
Average
10.3 10.6x
10
7.6 8.1 7.3
5
0 PT
Jollibee Shakey's Pizza
PT Sarimelati Kencana
Sarimelati Max's Group Berjaya Food Jumbo
Kencana
8
3Q19 Performance Recap
In 3Q19, core revenue and NPAT increased by 86% and 39% y-y, respectively, primarily from the consolidation of NH Hotel Group (NHH). Driven by
MINT’s timely strategic initiatives with its investment in NH Hotel Group and the sale and leaseback of three Tivoli hotels in Portugal, MINT was able
to report robust performance despite the softness of MINT’s organic businesses, which were impacted by external challenges, including global
uncertainties, continued appreciation of the Thai Baht and subdued domestic consumption demand.
REVENUE 3Q19 REVENUE CONTRIBUTION
THB million +86% y-y
+4,779 34,277 Minor Lifestyle
+14,592 +131 29,497 4% Minor Food
30,000
-150 19%
20,000 15,889
10,000 -965
Minor Hotels
0 77%
3Q18 Minor Hotels NHH Minor Food Minor 3Q19 Core Non-core 3Q19
Revenue Pre-NHH Lifestyle Items Reported * Excludes non-core items
NET PROFIT 3Q19 NET PROFIT CONTRIBUTION
THB million +39% y-y
+3,143 4,560 Minor Food
4,000 15%
3,000
2,000 +836 1,417
1,020
1,000 -143 -20
-275
0 Minor Hotels
3Q18 Minor Hotels NHH Minor Food Minor 3Q19 Core Non-core 3Q19 85%
NPAT Pre-NHH Lifestyle Items Reported * Excludes non-core items
* Non-core items are detailed on page 47. 9
9M19 Performance Recap
In 9M19, MINT’s core revenue almost doubled primarily from the consolidation of NHH. Core NPAT increased at a lower rate of 9% y-y, because of
NHH’s first quarter low season, FX headwinds and MINT’s organic operations.
REVENUE 9M19 REVENUE CONTRIBUTION
THB million +91% y-y
94,762 Minor Lifestyle
100,000 +43,365 +191 +358 89,739 +5,023
4% Minor Food
80,000 20%
60,000 47,095 46,974
40,000 -121 -1,149
20,000
0 Minor Hotels
9M18 Non-core 9M18 Core Minor NHH Minor Minor 9M19 Core Non-core 9M19 76%
Reported Items Hotels Food Lifestyle Items Reported
Pre-NHH * Excludes non-core items
NET PROFIT 9M19 NET PROFIT CONTRIBUTION
THB million +9% y-y Minor Lifestyle
+2,778 6,929 1%
Minor Food
6,000
+1,129 23%
3,944 3,824 4,151
4,000 -296
-121 -44
-461
2,000
0
9M18 Non-core 9M18 Core Minor NHH Minor Minor 9M19 Core Non-core 9M19 Minor Hotels
Reported Items Hotels Food Lifestyle Items Reported 76%
Pre-NHH * Excludes non-core items
* Non-core items are detailed on page 47. 10FX Headwinds & Lease Payment
In 3Q19, MINT’s financial performance was adversely impacted by the strengthening of the Thai Baht and the additional lease payment because of
the sale-and-lease-back transaction of the 3 Tivoli assets. Excluding such impact, MINT’s like-for-like (LFL) NPAT would have increased by 67% in
3Q19 and 17% in 9M19.
3Q19 LFL NPAT
THB million +67% y-y +39% y-y
2,000 +832 1,707
1,500 -124 -21 1,417
1,020 -213 -77
1,000
500
0
3Q18 Minor Hotels Minor Food Minor 3Q19 @ FX Impact Leases 3Q19
NPAT Lifestyle Constant FX Core
& excl Lease
9M19 LFL NPAT
THB million +17% y-y +9% y-y
5,000 +939
4,432
3,824 4,151
4,000 -287 -44 -204 -77
3,000
2,000
1,000
0
3Q18 NPAT Minor Hotels Minor Food Minor 3Q19 @ FX Impact Leases 3Q19
Lifestyle Constant FX Core
& excl Lease
* Non-core items are detailed on page 47. 11International Presence
With solid diversification strategy, MINT’s footprint was in 63 countries at the end of 9M19 across its hospitality and restaurant businesses.
Minor Hotels
Minor Food
Combination
REVENUE CONTRIBUTION
100%
13%
75% International
61% 72%
75%
50% Thailand
87%
25%
39% 28%
25%
0%
2008 2018* 9M19* 2023F
* Excludes non-core items
12MINOR HOTELS
Anantara AngkorMinor Hotels – Financial Highlights
Revenue, EBITDA and NPAT of Minor Hotels improved significantly in 9M19 y-y, primarily as a result of the consolidation of NHH since October
2018. In the midst of weak operating environment and external challenges, Minor Hotels’ international expansion and accretive M&A strategies
have differentiated the group from its peers in terms of growth and performance.
THB million +152% y-y +162% y-y
68,257 +43,365 68,257
24,535 24,408
21,230 22,619
26,042 26,042
8,929 8,121 8,992
Revenue -1,149
+100% y-y +100% y-y
12,785 +7,382 12,785
5,907 5,282 6,383
4,417 6,383
2,245 2,213 3,085 -980
EBITDA 1,926
EBITDA 25.1% 23.7% 24.6% 24.1% 14.4% 21.6% 19.5% 24.5% 18.7%
Margin
+86% y-y +27% y-y
3,165 +1,129 3,165
1,810 2,497 2,497
1,825
1,141 1,212
NPAT 705 651 -461
128
Net 12.8% 8.7% 7.2% 7.4% 0.6% 7.5% 5.4% 9.6% 4.6%
Margin
9M18 9M19 9M18 Minor Hotels NHH 9M19
1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 Pre-NHH
* The financials above reflect performance from operation, and therefore exclude non-core items as detailed on page 47. 14Minor Hotels – Organic Performance
Organically (excluding NHH performance), 9M19 revenue of Minor Hotels declined by 4%, from owned hotels, management letting rights (MLR)
portfolio in Australia and mixed-use business, although managed hotels reported revenue increase. Consequently, 9M19 EBITDA and NPAT declined
by 16% and 18% respectively, from the lower flow-through of the owned hotels, MLR and real estate operations, as well as FX headwinds.
THB million -11% y-y -4% y-y 9M19 KEY HIGHLIGHTS
25,598 24,449 Owned hotels • Revenue (excluding NHH) declined by 5% y-y, as a result of:
8,907 (Minor Hotels pre-NHH) ‒ Soft performance of Thailand hotels, especially in the
7,942
provinces, and
23% ‒ The adverse impact of the strengthening of the THB on
Revenue of 9M19 Minor Hotels’
overseas owned portfolio, despite the RevPar growth of
revenue
10% in local currencies for the 9M19 period, together with
the tragedy in Sri Lanka.
-26% y-y -16% y-y
6,065
5,085
Management letting rights • Revenue in THB term declined by 11% y-y, because of:
2,129
1,577 6% ‒ AUD RevPar down by 5%, pressured by both occupancy
of 9M19 Minor Hotels’ and room rate, and
EBITDA ‒ Weakening of AUD by 10% during the period.
revenue
EBITDA 23.9% 19.9% 23.7% 20.8%
Margin
Management contracts • Revenue (excl NHH) increased by 12% y-y, primarily
attributable to improving performance of hotels in the Middle
-31% y-y
2,523
-18% y-y 1% East and the Maldives, together with contribution of newly
891 of 9M19 Minor Hotels’
2,062 added hotels.
616 revenue
NPAT Mixed-use business • Revenue declined by 8% y-y, from:
‒ The decline in sales of Anantara Vacation Club earlier in
Net 10.0% 7.8% 9.9% 8.4% 5% the year, although 3Q19 recorded strong turnaround, and
Margin of 9M19 Minor Hotels’
revenue ‒ Timing mismatch of the residential sales, while 4Q19 looks
3Q18 3Q19 9M18 9M19 promising.
* The financials above reflect performance from operation, and therefore exclude non-core items as detailed on page 47. 15Minor Hotels – NH Hotel Group Performance
NH Hotel Group reported recurring EBITDA of EUR 209 million in 9M19, an increase of 13% y-y as a result of sound revenue growth (+6%) and
continuous cost control. NHH reiterates on its full-year 2019 EBITDA & recurring NPAT guidance of EUR 285 million and approx. EUR 100 million
respectively (excluding IFRS 16 and IAS 29 accounting impacts and Tivoli integration).
EUR million +8% y-y +6% y-y Consolidation - THB million 9M19 KEY HIGHLIGHTS
1,190
1,257 43,808 • 9M19 revenue growth of 6%
436
404 ‒ Organic RevPar up 4.6% (Occupancy flat; ADR +4.6%)
Revenue
Revenue ‒ Strong growth in Europe of +3.5%. Additional
443 revenue from new hotels & transfer of Tivoli portfolio
+11% y-y +13% y-y
7,770 Accounting
• 9M19 recurring EBITDA growth of 13%, with margin
78 209
185 360 improvement of 1.0 p.p.
Recurring 70 Standard Recurring
EBITDA + Difference ‒ Effective cost control with 35% EBITDA conversion
318 7,340 EBITDA
rate. Parameter changes explain 49% of the increase
EBITDA 17.4% 17.9% 15.6% 16.6% 71.6% 17.6%
Margin of total operating costs and 41% of lease payments
+30% y-y +57% y-y Acquisition • 9M19 recurring NPAT increase of 57%
28 70 - 1,207 Related
Recurring 22 45
Expenses
‒ Business improvement
NPAT -26 1,103 ‒ Lower financial costs, from full redemption of
NPAT 5.3% 6.4% 3.7% 5.6% NM 2.5% convertible bond (June 2018) and partial early
Margin
-3% y-y -21% y-y NPAT redemption of 2023 bond (4Q18)
29 28 93 - 1,207 Acquisition • 9M19 reported NPAT decline of 21%, due to lower
Reported 74 Related contribution (-EUR 45 million) of non-recurring activities
NPAT 1,236 Expenses
-26 (sale & leaseback of NH Collection Amsterdam Barbizon
Palace Hotel in 1Q18)
3Q18 3Q19 9M18 9M19 9M18 9M19
excl IFRS 16 excl IFRS 16 Leverage • Net financial debt position of EUR 190 million
Note: (1) As per NHH’s report, the numbers include hyperinflation accounting effect (IAS 29) (implemented since 3Q 2018) but excludes IFRS 16,
(2) Recurring NPAT exclude mainly net capital gains from asset rotation, and
(3) In THB consolidation, acquisition-related expenses include expenses related to fair value adjustment and interest expenses on the financing of the acquisition. 16Minor Hotels – International Presence
In recent years, MINT has implemented a solid diversification strategy. With the investment in NHH, MINT operates hotels and spas under a
combination of investment, joint-venture and management business models in 55 countries.
Investment
Management
Combination
New Destinations in Pipeline
Hubs
REVENUE CONTRIBUTION
100% 6%
75% International
78% 88% 89%
50% Thailand
94%
25%
22% 12% 11%
0%
2008 2018* 9M19* 2023F
* Excludes non-core items
17Minor Hotels Portfolio
In terms of business model, owned and leased business is the most important to Minor Hotels, with 87% revenue contribution. In terms of
geography, Europe is the major contributor with 66% of Minor Hotels’ revenue, and about 60% of NPAT. For the full year, Europe contribution is
expected to decline as Thailand and Maldives enter high season in the forth quarter.
System-wide Room Contribution System-wide Room Contribution
By Ownership By Geography
MLR Middle East & Asia
9% Africa 6% 10%
Owned Oceania
25% 9%
Managed
19%
76,967 Americas 76,967
14%
Rooms Rooms
JV 3%
Leased Europe
44% 61%
9M19 Revenue Contribution 9M19 Revenue Contribution 9M19 NPAT Contribution
By Business By Geography By Geography
Mixed-use Others Others
MLR Maldives & 8% Thailand
5% Middle East 2% 7% Thailand
6% 12%
Managed Maldives & 13%
Australia & New
2% Zealand 6% Middle East
17%
THB Americas
68,257 6%
Americas
million 3%
Owned & Europe
Europe
Leased 66% 60%
87%
18Owned & Leased Hotels
Owned &
With the acquisition of NHH, owned & leased hotels is the major revenue contributor. 3Q19 organic RevPar excluding FX
9M19
Leased impact of owned & leased hotels grew by 2%, driven by overseas hotels. System-wide RevPar of owned & leased portfolio
87%
Minor Hotels
Revenue
declined by 39%, from the dilution of ADR with the consolidation of different room type mix of NHH, and the strengthening
of the Thai Baht. Revenue of owned & leased hotels more than tripled in 3Q19, primarily from the consolidation of NH Hotel
Group.
NUMBER OF HOTEL ROOMS ADR
No of +657% y-y THB Organic excl FX System-wide
Rooms +5% y-y -39% y-y
20,000 52,978 53,262 53,448 8,000 7,314
60,000 52,969 7,072
6,465
15,000 6,152 5,920
6,000 5,556
10,000 4,109
7,063 7,063 7,063 3,985 3,748 3,763
4,000
5,000
0 2,000
1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19
OCCUPANCY REVPAR
90% System-wide THB Organic excl FX System-wide
Flat +2% y-y -39% y-y
6,000
80% 74% 74% 74%
4,400 4,533 4,313 4,574
70% 64% 65% 4,000 3,568 3,997
62% 71% 3,053
60% 2,743
68% 2,444 2,773
60%
61% 2,000
Organic
50% -3% y-y
40% 0
1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19
19Owned Hotels – Thailand
Thailand
11% Thailand continues to be an important market for Minor Hotels. RevPar trend of hotels in Thailand was soft in 3Q19,
NHH Overseas
74% 9M19 excl NHH amidst the low season. Performance of Bangkok hotels continued to hold up relative to hotels in the provinces. Minor
Owned Hotels 15%
Revenue Hotels continues to believe that Thailand will remain an attractive destination for tourism with its diverse attractions,
well-developed infrastructure and strategic location.
THAILAND 3Q19 KEY HIGHLIGHTS
RevPar Growth Organic
(y-y) +14% +1% Flat -2% -6% Flat -5% • International tourist arrivals into Thailand grew by 7% in 3Q19,
THB driven by recovery of tourists from China, new market; i.e. India, and
8,000 7,652 6,701 7,303 the traditional markets of Japan and Korea.
6,393 5,994 Thailand
6,000 5,377 5,361 5,074 5,367 5,180
4,164 3,891 3,937 • Minor Hotels’ number of room nights sold declined by 4% y-y in
4,000 3,875
84% 78% 76% 82% 73% 76%
3Q19. As a result, organic RevPar of Minor Hotels’ owned Thailand
72%
2,000 portfolio declined by 5% in 3Q19 compared to 3Q18.
0
1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19
• RevPar of Bangkok hotels was flat in 3Q19 compared to 3Q18.
% Occupancy ADR RevPar (Occ -1%, ADR +1%).
Bangkok
9M19 ORGANIC REVPAR GROWTH (THB) • RevPar of Bangkok hotels in 3Q19 was driven by the St. Regis Hotel
and AVANI Bangkok Riverside.
THAILAND HOTELS
REVENUE CONTRIBUTION
9%
• Performance of hotels in the provinces remained challenging with
Bangkok -2% Flat -9% -7% -10% RevPar decline of 10% in 3Q19 (Occ -2%, ADR -7%).
1Q 2Q 3Q 1Q 2Q 3Q
44% Thailand
Provinces
Provinces • Positive RevPar growth of Anantara Golden Triangle, AVANI Samui
56% and Anantara Layan Phuket helped partially mitigate the RevPar
Bangkok Provinces decline of other hotels.
20Owned Hotels – Overseas (Excl NHH)
Thailand
11% RevPar of owned overseas hotels (excl NHH) declined by 6% in 3Q19, solely from the strengthening of the THB.
NHH Overseas
74% 9M19 excl NHH
Excluding FX impact, organic RevPar of owned overseas hotels increased by 7%. Selective asset refreshments and
Owned Hotels 15% ongoing sales & marketing efforts helped Minor Hotels to continue to report positive momentum despite the
Revenue
challenging macro backdrop in its key markets.
OVERSEAS EXCL NHH 3Q19 KEY HIGHLIGHTS
RevPar Growth Organic
(y-y) +14% +6% +12% +5% -3% +10% -6% • Portugal portfolio’s RevPar was down 8% in THB (+3% in EUR),
THB with the weakening of the EUR by 11% during the quarter.
6,902 6,823 5,977 6,249 6,602 Portugal
5,780
6,000 5,690 • With the occupancy already in the 80’s, the increase in RevPar in
4,715 4,426
4,000
3,380 3,185 3,724 EUR was driven primarily by rate.
3,098 69% 3,009 67%
59% 53% 64%
45% 48%
2,000 • Brazil’s RevPar declined by 4% in THB (+3% in BRL) with the
0 Brazil weakening of the Brazilian real by 7%.
1Q18 2Q18 3Q18* 4Q18 1Q19 2Q19 3Q19 • The BRL RevPar growth was driven by Tivoli Sao Paulo Mofarrej.
% Occupancy ADR RevPar
9M19 ORGANIC REVPAR GROWTH (THB) • RevPar of the Maldives portfolio increased by 1% in THB (+9% in
OVERSEAS HOTEL (EXCL NHH) IN LOCAL CURRENCIES (3Q) USD) with the weakening of the USD by 7%.
REVENUE CONTRIBUTION +3% +3% +9% +32%
Maldives
• The RevPar growth continued to be from the successful focus on
18% 19% rate increase.
Others Portugal
29% 34%
8% 7% 8%
• RevPar of the African portfolio increased by 3% in THB (+32% in
Flat -8% -3% -4% Flat 1% 3%
local currencies).
Africa 1Q 2Q 3Q* 1Q 2Q 3Q 1Q 2Q 3Q 1Q 2Q 3Q Africa
13% Brazil • Hotels in Zambia were the drivers of the RevPar growth, with over
Maldives 13%
11% Portugal Brazil Maldives Africa 30% growth rate for the two hotels in local currency.
* For comparison purposes, to be in line with the operations, the three Tivoli properties under the sales and lease back transaction has been reclassified to be under NHH in 3Q18 and are no longer in Minor
Hotels’ owned overseas portfolio. 21Owned & Leased Hotels – NH Hotel Group
Thailand
11% NHH was the largest contributor to the owned & leased hotel portfolio in 9M19. 9M19 RevPar of NHH increased by 4%,
NHH Overseas
74% 9M19 excl NHH driven by all key markets (despite the negative trade fair calendar of Central Europe in 3Q19). The RevPar increase in
Owned Hotels 15%
Revenue MLR 9M19 was primarily from ADR (all regions reported ADR increases except LatAm with outstanding RevPar growth in
Spain).
NH HOTEL GROUP – ORGANIC REVPAR 3Q19 KEY HIGHLIGHTS
RevPar +2% y-y +4% y-y • Both Madrid and Barcelona achieved double-digit RevPar growth
Spain due to favorable fair and congress calendar.
EUR EUR
120 98 100 120
98 101 • Milan continued to perform well with positive trade fair calendar.
73 75 70 73
80 80
Italy • Performance in Rome was weaker due to lower demand of
40 75% 75% 40 72% 72% business groups.
0 0 • Recovery continued in Brussels with higher number of events
3Q18 3Q19 9M18 9M19
• Amsterdam was slightly pressured by lower business group
% Occupancy ADR RevPar Benelux
events.
9M19 ORGANIC REVPAR GROWTH (EUR) • Congress center hotels’ RevPar continued to be positive.
NHH REVENUE CONTRIBUTION 10% • Operations in Germany were weaker by the unfavorable trade fair
Latin Central
America 7%7% 6%6% 5% calendar in the third quarter.
7% Spain 5% 4% 4% Europe
27% 2% • Additionally Frankfurt negatively affected by higher supply.
Central 1% 1% -5% 0.2%-9%
Europe
23% 1Q 2Q 3Q 1Q 2Q 3Q 1Q2Q 3Q 1Q 2Q3Q 1Q 2Q 3Q • Mexico saw positive RevPar from higher demand and increase in
Latin room rate.
Benelux Italy America
19%
• Argentina impacted by hyperinflation and Colombia by currency
23% Spain Italy Benelux Central Latin
Europe America depreciation.
Note: NHH’s organic stats disclosed by MINT and are different than NHH’s public disclosure as MINT’s version is organic (one-year in operation) whereas NHH’s is LFL (24 months full cycle of operations) 22NHH Integration & Synergies Update
Potential synergies have been identified and will be proposed to NHH’s board for approval, after which the plan will be announced. Both MINT &
NHH are already working together on the integration, examples are.
TIVOLI INTEGRATION & HUB STREAMLINING CROSS-EXPANSION
Successful transfer of hotels in Portugal & Brazil to be under NHH Leverage on both parties’ strengths to expand the hotel portfolio.
management, in order to leverage on NHH’s strong operating
platform:
NHH’s relationship
• 3 hotels in Lisbon being leased & managed by NHH Anantara’s brand
• 9 hotels in Portugal under the management of NHH
with real estate
investors / owners
+ strength
• 2 hotels in Brazil with NHH’s support on operational process and
reviews
Handover of NH Cape Town The Lord Charles in South Africa to be
under the operational oversight of Minor Hotels’ Africa hub.
Anantara Villa Padierna Palace Anantara will soon début in
Benahavis Marbella Resort in Spain Ireland with the rebranding of
opened its doors in July 2019. The Marker Hotel in Dublin.
23Asset-Light Businesses
MLR
Managed 6%
MINT’s asset light businesses include management letting rights (MLR) of serviced-suites in Australia and New Zealand and
2% hotel management contracts. RevPar of MLR declined because of the weak macro environment and the strengthening of the
9M19
Minor Hotels THB. As a result, MLR revenue declined by 11% in 3Q19. For managed hotels, system-wide RevPar declined from change of
Revenue
hotel mix with the addition of the NHH portfolio, together with the strengthening of the THB. However, revenue of managed
hotels increased by 11% from the new openings.
MANAGEMENT LETTING RIGHTS MANAGED HOTELS
NO OF HOTEL ROOMS NO OF HOTEL ROOMS
No of +6% y-y No of +194% y-y
Rooms Rooms
6,935 7,000 6,989 7,043 14,450
7,000 6,511 6,618 15,000 13,311 13,284 13,408
6,512
6,000 10,000
4,745 4,750 4,919
5,000 5,000
4,000 0
1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19
REVPAR REVPAR
THB AUD THB Organic excl FX System-wide
5,000 THB 170 -1% y-y -16% y-y
-17% y-y 6,000
4,000 3,624 3,480 3,411 3,188 4,170 4,306
3,052 2,895
2,673 150 4,000 3,413 3,425 3,377
3,000 3,144 3,119 2,882 2,865
148 145 2,744
2,000 144
142 138 130 2,000
1,000 126 AUD
121 -5% y-y
0 110 0
1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19
24Hotel Expansion Pipeline
2019F 2020F 2021F 2022F-2024F
• Marbella, Spain 132 rms • Ubud, Bali, Indonesia* 71 rms • Milan, Italy 185 rms • Frankfurt, Germany 428 rms
• Desaru, Malaysia 103 rms • Dublin, Ireland 187 rms • Santander, Spain 64 rms • Monterrey, Mexico 120 rms
HOTEL INVESTMENT & LEASE
• Merida , Mexico 120 rms • Khao Lak, Thailand 328 rms • Alicante, Spain 63 rms • Frankfurt, Germany 375 rms
• A Coruna, Spain 92 rms • Fares Island, Maldives* 200 rms • Milan, Italy 100 rms
• Mannheim, Germany 225 rms • Cancun, Mexico 140 rms • Hamburg, Germany 261 rms
• Leipzig, Germany 197 rms • Hannover, Germany 89 rms • Hamburg, Germany 136 rms
• Mexico City, Mexico 105 rms
• Amsterdam, Netherlands 650 rms
• Munich, Germany 173 rms
• Antwerp, Belgium 180 rms
• Rome, Italy 42 rms
• Warangi, Serengeti
National Park, Tanzania* 12 rms
11 Hotels / 1,381 Rooms 7 Hotels / 1,665 Rooms 6 Hotels / 809 Rooms 3 Hotels / 923 Rooms
27 Hotels / 4,778 Rooms
* Note: Joint-ventured properties
• Le Chaland, Mauritius 164 rms • Bang Krachao, Thailand 62 rms • Phi Phi Island, Thailand 107 rms • Accra, Ghana 155 rms
• Tozeur, Tunisia 93 rms • Libo Country, China 173 rms • Nanjing, China 120 rms • Chengdu, China 150 rms
• Bangkok, Thailand 382 rms • Ras Al Khaimah, UAE 174 rms • Busan, Korea 570 rms • Sharjah, UAE 233 rms
• Adelaide, Australia • Krabi, Thailand • Savanne, Mauritius • Riyadh, Saudi Arabia 163 rms
MANAGEMENT CONTRACTS / MLRS
78 rms 83 rms 156 rms
• Angkor, Cambodia 80 rms • Nha Trang, Vietnam 273 rms • Ras Al Khaimah, UAE 225 rms • Jeddah, Saudi Arabia 328 rms
• Busan, South Korea 289 rms • Dubai, UAE 264 rms • Dubai, UAE 528 rms • Sifah, Oman 300 rms
• Victoria, Australia 170 rms • Muscat, Oman 162 rms • Fortaleza, Brazil 130 rms • Kota Kinabalu, Malaysia 386 rms
• Wellington, New Zealand 226 rms • Queensland, Australia 50 rms • Hangzhou, China 166 rms • Yangon, Myanmar 250 rms
• Krabi, Thailand 178 rms • Chengdu, China 201 rms • Phuket, Thailand 500 rms • Cam Ranh, Vietnam 595 rms
• Dubai, UAE 360 rms • Bahia, Brazil 50 rms • Lima, Peru 164 rms
• Ho Chi Minh City, Vietnam 217 rms
• Beirut, Lebanon 110 rms • Chengdu, China 197 rms • Iquique, Chile 135 rms • Yangon, Myanmar 221 rms
• Gold Coast, Australia 76 rms • Hangzhou, China 132 rms • Lima, Peru 265 rms • Guadalajara, Mexico 120 rms
• Valencia, Spain 47 rms • Murano, Italy 104+38 rms • Santiago, Chile 146 rms • Aguascalientes, Mexico 105 rms
• Santiago, Chile 85 rms • Feira de Santana, Brazil 207 rms Others • Hangzhou, China 54 rms
• Mexico City, Mexico 144 rms
• Porto, Portugal 79 rms • London, UK 190 rms
• Panama, Panama 83 rms
• Andorra la Vella, Andorra 60 rms Others • Zhuhai, China 100 rms
• Laikipia, Kenya 8 rms
17 Hotels / 2,485 Rooms 16 Hotels / 2,360 Rooms 14 Hotels / 3,266 Rooms 16 Hotels / 3,550 Rooms
63 Hotels / 11,661 Rooms 25
** Hotels already opened in 9M19Mixed-Use Business
Mixed-use
5% 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.
9M19
Minor Hotels Anantara Vacation Club provides stable revenue growth driven by membership growth. In 3Q19, mixed-use revenue declined
Revenue
by 10% y-y, as the increase in revenue of Anantara Vacation Club of 9% only partially offset the decline in residential sales
during the quarter from timing mismatch of the sales. Minor Hotels expects to have some residential sales activities in 4Q19.
RESIDENTIAL DEVELOPMENT ANANTARA VACATION CLUB
CURRENT PROJECTS GROWING MEMBERSHIP
Layan Residences by Launched Growth (y-y) +28% +15% +27% +21% +18%
15 luxury pool villas 100%-owned
Anantara, Phuket 2015 No. of
Members 13,884 Others
12,347
Avadina Hills by Launched 12,000 10,193 27% Malaysia
16 luxury pool villas 50% JV
Anantara, Phuket 2018 8,000 7% Hong Kong
6,928
8,000 8%8% Singapore
Launched 11%
The Estates Samui 14 luxury pool villas 100%-owned 4,000 Thailand
2006 39%
0 China
Anantara Chiang Mai 44 units in 7-storey Launched
Serviced Suites condominium building 50% JV 2016 2015 2016 2017 2018 9M19
INVENTORY TO ACCOMMODATE GROWING MEMBERS
181 keys for rent & 6 penthouses Launched
Torres Rani, Maputo 49% JV No. of Units
for sale; 21-storey office tower 2015 7 Destinations: >12 Destinations
Queenstown, Bali, > 500
500 Sanya, Samui,
PIPELINE Phuket, Bangkok
400 Chiang Mai
Anantara Desaru To launch
Residences, Malaysia 20 residential villas 60% JV 2020 300
229 238
200 160 186
Anantara Ubud To launch 137
Residences, Indonesia 15 residential villas 50% JV 2020 100
To launch 0
Silom Office NA 40% JV 2023 2015 2016 2017 2018 3Q19 2023F
26MINOR FOOD Swensen’s High Fiber / Low Calories Ice Cream
Minor Food – Financial Highlights
9M19 revenue of Minor Food grew by 1% y-y, primarily because of the outlet expansion, which offset the slowdown of the overall same-store-sales
from the weak macro backdrop. EBITDA and net profit declined y-y by 9% and 24% respectively. Despite improved profitability of the China hub,
overall margins were under pressure, which resulted from the contraction of same-store-sales, together with investment and expenses in growing
sales and strengthening of digital capabilities in Thailand.
THB million -3% y-y +1% y-y KEY HIGHLIGHTS
17,728 17,919 • The Pizza Company, Burger King, The Coffee Club and
6,367 Total-system-sales
6,085 5,806 5,836 5,756 Riverside reported positive total-system-sales growth as
5,865 5,686
growth of the brands continued to selectively open new outlets.
Revenue
4.3% • Total-system-sales growth was positive throughout the
in 9M19 first nine months, driven by outlet expansion of China
-23% y-y -9% y-y
and Thailand hubs.
2,938
2,680
1,123 1,103
903 911 879 698
710 Outlet expansion • The drivers of outlet expansion during the past 12
EBITDA 6% months continued to be The Pizza Company, Dairy
in 9M19 Queen, Burger King, The Coffee Club and Riverside.
EBITDA 18.5% 15.6% 15.6% 12.3% 17.3% 15.0% 12.3% 16.6% 15.0%
Margin
-41% y-y -24% y-y
1,248 • China hub reported positive SSSG in 9M19 (driven by
548 475 951 1H19), but it was not sufficient to offset the negative
350
Same-store-sales
350 273 269
same-store-sales growth of Thailand and Australia hubs
NPAT 207 growth of
which continued to face challenging macro conditions.
-3.8% • Minor Food will continue to strengthen its multi-brand
Net 9.0% 6.0% 6.0% 4.7% 7.5% 4.6% 3.6% 7.0% 5.3%
Margin in 9M19 portfolio through product innovations and accessibility,
especially through delivery.
1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 9M18 9M19
* The financials above reflect performance from operation, and therefore exclude non-core items in as detailed on page 47. 28Minor 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, franchised and a combination of both business models. MINT continues to look for opportunities to expand, especially in these existing
markets.
Owned
Franchised
Combination
Hubs
REVENUE CONTRIBUTION
100%
19%
35% 37% 40%
75%
International
50%
81% Thailand
65% 63% 60%
25%
0%
2008 2018* 9M19* 2023F
* Excludes non-core items
29Minor Food – Operational Performance
3Q19 total-system-sales of the restaurant business grew by 3.7%, driven by selective outlet expansion of 6% y-y, primarily in China, Thailand and
developing hubs. Same-store-sales declined by 3.7% in 3Q19, as a result of slow consumption and weak macro backdrop across all major hubs.
SSS & TSS GROWTH RESTAURANT OUTLETS BY GEOGRAPHY
International 4,462
Same-Store-Sales Growth Total-System-Sales Growth Thailand
+6% y-y 37%
10%
2,270 2,297
34% 34%
1,043 63%
5.3%
33% 66% 66%
5% 3.8% 3.7% 67%
2.8% 2008 2018 3Q19 2023F
0.7%
RESTAURANT OUTLETS BY OWNERSHIP
0% -0.7%
-1.7% Franchised 4,462
Owned
-3.1%
-1.8% -3.8% -4.0% -3.6% -3.7% 51%
-4.3% +6% y-y
2,270 2,297
-5%
1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 49% 50%
1,043 59%49%
38%
53%
51% 50%
50%
62% 82%
No. of
2,085 2,130 2,174 2,270 2,254 2,268 2,297 2008 2018 3Q19 2023F
Outlets
30Thailand Hub
Thailand Revenue from domestic operations accounted for over 60% of total restaurant revenue in 9M19. Amidst the challenging
63% economic environment, Minor Food started to see some improvements in its same-store-sales performance with
9M19
Minor Food continued effort on product innovations, promotional campaigns and delivery initiatives.
Revenue
THAILAND’S SSS & TSS GROWTH KEY HIGHLIGHTS
• Same-store-sales: Thailand’s SSS declined by 5.0% in 3Q19, an improving
Same-Store-Sales Growth Total-System-Sales Growth
trend q-q for the third consecutive quarter:
10% ‒ In terms of brands, Burger King has seen significant recovery, with
same-store-sales growth of +9% in Sept;
‒ Bangkok has seen notable m-m improvement in same-store-sales
5% trend, attributable to the focus on delivery.
• Total-system-sales:
0% ‒ Thailand hub selectively expanded its network of outlets, especially the
franchised outlets of The Pizza Company and Dairy Queen;
‒ With outlet expansion of 7% in 3Q19, Thailand’s TSSG was 2.1%.
-5%
• 2019 Strategies:
‒ Focus on customer accessibility, both through physical and digital
channels;
-10%
1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 ‒ Continue with product innovations, ensuring that the brands remain
relevant for customers; and
‒ Leverage on digital technology, including areas of operations, customer
service and ordering, loyalty and e-payment and big data analytics.
31Thailand Hub – Delivery
With the marketplace expanding from dine-ins to delivery services, Thailand hub has focused its efforts on both its own delivery platform and third-
party aggregators.
32Thailand Hub – Product Innovation
In order to maintain its position with products that are on top of mind of customers, Minor Food continues to create excitement through product
innovations for all of its brands.
The Pizza Company’s Cheesy Shrimp Pizza Burger King’s Cheesy Truffle Fries Dairy Queen’s Super Sundae
Sizzler’s Cold-Pressed Juice Sizzler’s Plant-Based Menu Swensen’s Bingsu Cake
33China Hub
China hub is expected to remain one of MINT’s growth drivers as MINT is confident in the strong growth prospect of the
9M19 country, supported by growing middle class and increased urbanization trend. Riverside continues to be the main driver of
China Minor Food China hub. In 9M19, net profit of China hub more than doubled y-y, from the effective cost control.
15% Revenue
CHINA’S SSS & TSS GROWTH KEY HIGHLIGHTS
Same-Store-Sales Growth Total-System-Sales Growth • Same-store-sales: China’s SSSG declined by about 2% in 3Q19, primarily
from lower traffic amidst the slowing economy.
25%
• Total-system-sales: With the continued outlet expansion of 17%, the TSSG
20% was 9.3% in 3Q19.
15% • 3Q19 Update: Riverside launched its loyalty program in August 2019, with
the focus on driving traffic to the stores and leverage on CRM.
10%
• 2019 Strategies:
5%
‒ Continue to expand Riverside outlets, with the aim to dominate the
0% grilled fish segment in Beijing and Shanghai and surrounding areas (Tier
2);
-5%
‒ Improve customer experience for Riverside brand, both through store
-10% uplift and food traceability programs; and
1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19
‒ Invest in system for efficiency and focus on CRM and loyalty program to
increase sales.
34China Hub – Building Customer Loyalty
Riverside’s will further build customers’ loyalty through digital loyalty program and food traceability.
Digital Loyalty Program Food Traceability
• Digital loyalty program was launched on WeChat. • As part of Riverside’s marketing plan, China hub is building public awareness on its fish
• Riverside is able to recruit 200,000 new members quality through various channels, including TV news coverage and printed ad.
per month. • Riverside is the first grilled fish brand in the market to provide farm to table traceable ‘live’
fish, providing customers with the highest level of food safety and raw ingredient
traceability.
35Australia Hub
Australia In 9M19, Australia hub’s revenue contributed 11% of total restaurant business. Although revenue increased in AUD term,
11% revenue in THB term declined by 7% because of the weakening of the AUD. Australia hub was able to maintain profitability
9M19
Minor Food in 9M19, despite the contraction of both same-store-sales and total-system-sales.
Revenue
AUSTRALIA’S SSS & TSS GROWTH KEY HIGHLIGHTS
• Same-store-sales: Australia’s SSS declined by 1.9% in 3Q19, as Australia's
Same-Store-Sales Growth Total-System-Sales Growth
economy slowed to its most sluggish pace since 2009.
5.0% • Total-system-sales: The trend of TSSG improved to -1.2%, supported by the
expansion of The Coffee Club International and Nomad’s strong coffee
volume sold through Aldi supermarket.
0.0%
• 2019 Strategies:
‒ Grow The Coffee Club business in Australia through:
-5.0% o brand relevance, especially through delivery business
(partnership with UberEats and potentially other aggregators),
and
-10.0% o differentiation through hero products and loyalty program;
‒ Drive international expansion of The Coffee Club brand in both existing
and new markets, where the main driver continues to be Thailand; and
-15.0%
1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19
‒ Expand coffee roasting business through all channels:
o retail channel through The Coffee Club and white label business,
and
o wholesale channel through supermarkets.
36Australia Hub – Domestic Operations
Australia hub focuses on product innovation and loyalty program, as well as delivery through partnership with Uber Eats with the target to improve
traffic.
Loyalty Programs & App Product Innovation Delivery Partnership
37Minor Food – 4Q19 Priorities
Amidst today’s rapidly changing competitive landscape, Minor Food has identified key priorities to be implemented for the rest of the year. In
addition, the acquisitions will bring in additional revenues and NPAT which will enhance Minor Food’s growth trajectory in the long term.
DRIVING SSSG DIVERSIFIED EXPANSION FOCUSING ON PROFITABILITY
1
Focus on delivery Physical Stores 1
Selective expansion through new Upgrading facilities / relocation to
2 channels : Transportation hubs, new higher traffic areas
smaller-scale communities &
Drive local menus
marketplace
3
Increase day-part traffic Digital 2
Driving digital transformation to
Growth through both own app /
increase productivity
4 platform and third-party aggregators
Grow occasions
In addition to the efforts to improve the operational performance above, the investment in Bonchon will also become another
growth driver of Minor Food going forward.
38MINOR LIFESTYLE
Minor Lifestyle – Financial Highlights
9M19 revenue of Minor Lifestyle was up 11%, driven primarily by retail trading business. EBITDA and NPAT declined by 9% and 56% respectively
because of higher proportion of the lower margin sales with discounts and promotions campaigns of retail trading business and lower operating
leverage of the contract manufacturing business.
+12% y-y +11% y-y KEY HIGHLIGHTS
THB million
Retail trading • 9M19 revenue from retail trading increased by
3,563
1,234 1,251 1,120 1,192 3,205 14%, mainly from Anello, OVS, Radley, Bossini,
1,130 1,014 1,062 80%
of 9M19 Minor Lifestyle Charles & Keith Bodum, Henckels and Joseph
revenue Joseph.
Revenue
Contract manufacturing
-17% y-y -9% y-y • 9M19 revenue from contract manufacturing
20% increased by 1%, impacted by the slow retail
221
201 of 9M19 Minor Lifestyle environment.
72 83 85 84
67 62 revenue
56
EBITDA
SSS & TSS GROWTH
EBITDA 6.3% 8.2% 6.3% 6.9% 6.7% 5.5% 4.7% 6.9% 5.6%
Margin 19.4% 20.1%
TSSG
-56% y-y 12.4% 11.4%
51 79 8.0%
3.1% 3.9% 2.4% 6.1%
30 30 31 1.3% SSSG
19 35 -2.5% -1.3%
NPAT 6 -2 -8.3%
-8.1%
Net 2.7% 3.0% 1.8% 4.1% 2.4% 0.5% NM 2.5% 1.0%
Margin 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19
1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 9M18 9M19 No. of Shops 416 429 452 490 486 496 486
40Corporate Information & Five-Year Plan
CAPEX & Balance Sheet Strength
CAPEX plans include committed CAPEX of projects in the pipeline. With the successful asset rotation strategy, interest bearing debt to equity ratio
declined to 1.35x at the end of 3Q19, very close to MINT’s internal policy target of 1.3x. MINT and its senior unsecured debentures have “A” rating
by TRIS. Going forward, source of fund for the committed CAPEX requirement will primarily be internal cash flow and debt financing.
CAPEX PLANS LEVERAGE RATIOS
X
THB million X 1.8
100,000
30,000 6.0 1.6
1.4 1.35 1.30x Internal
25,000 5.0 1.2 Policy
1.21
1.0
20,000 4.0 0.8
1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 YE19
15,000 3.0 Target
Interest Bearing Debt to Equity Net Interest Bearing Debt to Equity
10,000 2.0
BACK-UP FINANCING
5,000 1.0 THB million Note: Cash on hand as at end of
200,000 3Q19 is THB 11,987 million
0 0.0 150,000 Equity
2018 2019F 2020F 2021F 2022F 2023F 82,765
100,000 Equity*
Minor Food Minor Hotels Minor Lifestyle Debt 9,928
50,000 112,085 Debt
EBITDA coverage on committed CAPEX 59,298
0
Outstanding Borrowing & Equity Un-Utilized Facility
* 2018 CAPEX includes investments in Benihana, Riverside, Food Theory and NH Hotel Group * Assume 100% conversion of MINT-W6
42Strengthening of Balance Sheet
MINT is prudent on the management of its leverage level and focuses on consistently improve the quality of its balance sheet. Many initiatives have
been implemented over the past year in order to ensure strong balance sheet position.
Term Out of Loans for • The average maturity of the loans has been extended to over 6 years.
NHH Acquisition • All-in interest rate is below 3%.
Completed
• All fundings have been swapped into Euros.
• The proceeds from the successful asset rotation strategy of the sale-and-lease-back transaction of 3 Tivoli properties have
Partial Loan Repayment been used to partially repay debt.
from Asset Rotation
• MINT’s interest bearing debt declined from THB 125 billion at the end of 2Q19 to THB 112 billion at the end of 3Q19.
Strategy
• As a result, D/E ratio declined from 1.55x at the end of 2Q19 to 1.35x at the end of 3Q19
• The definition of “interest bearing debt” in the calculation of debt covenant has been amended to exclude the lease
Amendment of Covenant
liabilities, in anticipation of the IFRS 16, which will become effective 2020.
Calculation
• Such definition is applicable to all creditors – financial institutions and bondholders.
• The recent favorable account treatment of perpetual bonds is being validated by The Federation of Accounting Professions
Perpetual Bond for at least until the end of 2022.
Treatment
• The formal validation is expected to be before end of 2019.
43MINT’s Five-Year Strategy
Revenue Growth NPAT Growth
ROIC = 12%
2023 > 10% CAGR 15-20%
Goals
Employer of Choice Sustainable Business
Investments,
Winning Brand Value Capture & Innovation & Empowered Sustainable
Partnerships &
Portfolio Productivity Digital People & Team Framework
Acquisitions
Brands & value chains Ensure Good Corporate
monetization 1 commitment Superior Sustainable Governance
workforce leadership
Growth Margin enhancement 2 Set clear targets People Customers
Pillars through integration
& shared operations Leverage
3 ecosystem
Capital optimization partners Partners Environment
with asset right
Engaging work
strategy & mixed-use Promote digital Social Responsibility
business 4 environment
culture Mindset
44Five-Year Aspiration
2023F
2023
• > 630 hotels
3Q19 • > 250 residences built
• 529 hotels • > 500 vacation club units
• 132 residences built to date 2018 • > 4,400 restaurants
• 238 vacation club units REVENUE THB 78.5 bn
• > 600 retail shops & POS
• 2,297 restaurants
• 486 retail shops & POS (>46,000 sq.m.)
(31,704 sq.m.)
2009
REVENUE THB 17.2 bn 2009
• 30 hotels
• 1,112 restaurants
• 292 retail shops & POS
(14,275 sq.m.)
45APPENDIX Al Najada Doha Hotel Apartments by Oaks
Non-Core Items
Amount
Period Business Unit Non-recurring Items
(THB million)
4,743 revenue
Minor Hotels Gain from Tivoli asset sales
3,512 net profit
35 revenue
Minor Hotels Non-recurring revenue and expenses of NH
3Q19 -1 net profit
-46 Minor Hotels Foreign exchange loss on unmatched USD Cross-Currency Swap
Minor Hotels / Expenses and provisions related to Corbin & King, Ribs & Rumps, certain
-322
Minor Food brands in Singapore hub
Minor Hotels /
-48 pre-tax
Minor Food / Minor Loss from retirement benefit
-38 post-tax
Lifestyle
2Q19
62 revenue
Minor Hotels Capital gain from asset rotation of NH Hotel Group
44 net profit
-320 Minor Hotels Foreign exchange loss on unmatched USD Cross-Currency Swap
50 Minor Food Gain from the divestment of Bread Talk Thailand
132 pre-tax
1Q19 Minor Hotels Capital gain from asset rotation of NH Hotel Group
91 post-tax
-191 Minor Hotels Foreign exchange loss on unmatched USD Cross-Currency Swap
708 Minor Hotels Gain on fair value adjustment of investment in NH Hotel Group
-800 Minor Hotels Loss from changing status of investment in NH Hotel Group
-96 Minor Hotels Impairment charge of investment in Oaks Gladstone
4Q18 -280 pre-tax
Minor Hotels Impairment of investment in Rani (Mozambique)
-232 post-tax
-125 Minor Food Impairment of investment in GrabThai in UK
-87 Minor Hotels Foreign exchange loss on unmatched USD Cross-Currency Swap
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