Resilient Future March 2021 - Dusit International
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Building a
Resilient Future
Company Presentation
18 March 2021
March 2021
Disclaimer
The material contained in this document has been prepared by Dusit Thani Public Company Limited (“DTC”) and may contain forward looking statements
which includes but not limited to statements regarding our intent, belief, current expectation in respect of DTC’s business, operation, market researches,
results of operation and financial conditions, capital adequacy, specific provisions and risk management practices.
While due care has been used in the preparation of forward-looking statements, the assumptions of the information are subject to various risk and
uncertainties which the actual results may vary in a materially positive or negative manner differently from the anticipation. And no assurance that the past
performance is a reliable indication of future performance.
Therefore, the information regarding forward looking statements shall not be considered as recommendation or advice to investors or potential investors in
relation to hold, purchase, or sell securities. In this respect, DTC reserves the right not to be responsible and expressly disclaims all liabilities for, damages of
any kind arising out of use, reference to, or reliance on any information contained herein.
2
Agenda
Page
Business overview 4
2020 Recap 17
Financial performance 25
Outlook 30
Dusit Thani Laguna Singapore 3
Business Overview
ASAI Chinatown Bangkok, Thailand 4
Welcome to the
World of Dusit
Distinguished Asian hospitality group with
Thai heritage.
70+ 16
Years in hospitality Countries across 4
business continents
330+ 44+
Properties in key Hotel management
strategic locations projects in pipeline
11,300+
Keys in operations
As of 31 December 2020
5
Our Strategy
With strong background in the hotel management and education business, DTC has entered a new chapter
with multi-year plan since 2016.
BALANCE EXPANSION DIVERSIFICATION
Achieve 50:50 Double number of rooms in Achieve 10% revenue
domestic/overseas revenue operation to 14,000 by contribution from
with a balance of asset-light 2021 and expand across adjacent lines of
and capital investment the lodging spectrum business by 2024
2016 2019
Others
25.3%
THB Hotel THB Hotel
5,425 mn 88.7% 6,117 mn 61.7%
Others Food
2.5% 6.6%
Education Education
8.7% 6.4%
6
Our Business
Distinctly Thai yet with global reach, DTC is a leading hospitality company on a multi-year strategic journey
to deliver broadened experiences for customers and greater value for shareholders
2020 47.6% 11.6% Include in others 13.7% 27.1%
Revenue
Contribution
Hotels & Resor ts Hospitalit y & Proper t y Foods Others
Education Development
• 70+ Years in hospitality business • 28 Years in education business • 2 Flagship projects: • 70+ Years in hotel-based • 3 adjacent lines of businesses,
• 339 properties in operations, • 13,562 graduate students • Dusit Central Park - THB 46 bn restaurants and catering for including REIT with invested
covering 15 countries • Full range of renowned landmark mixed-use JV project large scale events assets in Thailand and
• Of which 10 owned hotels, 33 hospitality programs from located at the heart of Bangkok • 3 Investments & 2 developments international tourist
HMA and 296 villas management degree program, world-famous • Hampton Sriracha – THB 1.4bn across food supply chain destinations, standalone
contracts training to short courses high-end condominium JV • Increasing revenue contribution restaurant, spa, and catering
• +44 Contracts in pipeline project in EEC area to DTC group and housekeeping service
Dusit Hospitality
Services
Dusit Thani
Excellence Centre
(DTEC)
7
Our Hotel Business
Offer superior experience across the lodging spectrum from affordable lifestyle to bespoke villa rentals
FULL SERVICE LIMITED SERVICE EXPERIENCE
Bespoke Branded Lifestyle Luxury Sharing
Midscale Economy Budget
Luxury Residence Boutique Villas Economy
= Future plan
8
Our Hotel Brands
HOTELS & RESORTS
Dusit Devarana is a luxurious Every Dusit Thani combines dusitD2s are vibrant Dusit Princess is strategically An Asian-inspired collection
sanctuary of rare privacy. the grandeur of classic destinations for people who located with a convenient of hotels connecting curious
Positioning Holistic wellness to rejuvenate quality, the pleasure of the make things happen, access. An urban, travellers to vibrant local
the mind, body and soul in awe- latest facilities and wherever they are, catering contemporary design with an neighbourhoods.
inspiring locations. satisfaction of highly to all parts of modern life. easy-going atmosphere.
personalised service.
Upper Upper Lifestyle
Tier Luxury Upscale Midscale
Upscale
Hotel & 45-50 sq.m. 38 - 40 sq.m. 28 -32 sq.m. 22- 26 sq.m. 16 - 18 sq.m.
Room Size Min of 100 rooms / villas 250 - 400 rooms 180 – 300 rooms 180 – 250 rooms 120 – 180 rooms
Full facilities Full facilities Full facilities Full facilities Limited facilities
• Restaurants & bars • Restaurants & bars • Restaurants & bars • A restaurant(s) & bar(s) • A restaurant(s) & bar(s)
Facilities • Meeting facilities • Meeting facilities • Meeting facilities • Meeting facilities
• Integrated wellness • Integrated wellness facilities • Spa and fitness center • Fitness center
facilities • Spa (optional) 9
L u x u r y Vi l l a Re n t a l s
Elite Havens Luxury Villa Rentals and Management is Asia’s market leader in high-end private accommodation vacations,
welcoming over 80,000 guests a year.
10Properties under management
43 296 11,394
Hotels Villas Rooms
10 Owned proper ties Managed proper ties
Dusit Thani Laguna Phuket* Dusit Thani Guam Resort
Dusit Thani Pattaya Dusit Thani Krabi Beach Resort
Dusit Thani Hua Hin* Dusit Thani Dongtai
Dusit Thani Manila Dusit Thani Fudu Qingfeng
Dusit Thani Maldives* Dusit Thani Lubi Plantation Resort
Dusit Suites Hotel Ratchadamri, Bangkok Dusit Thani Mactan Cebu
dusitD2 Chiang Mai* Dusit Thani Residence Davao
Dusit Princess Chiang Mai Dusit Thani Wujin, Changzhou
Dusit Princess Srinakarin, Bangkok Dusit Thani Sandalwoods Resort Huizhou
ASAI Bangkok Chinatown Shuangue Bay
Dusit Thani Wetland Park Resort Nanjing
Dusit Thani Wellness Resort, Suzhou
33 Managed proper ties Dusit Thani Laguna Singapore
Dusit Devarana Conghua dusitD2 Khao Yai
Dusit Thani Dubai dusitD2 Kenz Dubai
Dusit Thani Lakeview Cairo dusitD2 Fudu Binhu (Changzhou)
Dusit Thani Abu Dhabi dusitD2 Ao Nang Resort, Krabi
*Under Dusit Thani Freehold and Leasehold Real Estate Investment Trust (DREIT) of which DTC holds a 30.02% stake
As of 31 December 2020 11Properties under management (Cont’d) Managed proper ties Luxury villas managed dusitD2 Thimphu under Elite Havens dusitD2 Society Hill (Tianjin) Indonesia 162 dusitD2 Davao Thailand 78 dusitD2 Salwa Doha India 22 Dusit Princess Moonrise Beach Resort Phu Quoc Sri Lanka 5 Dusit Princess Residences Dubai Marina Maldives 8 Royal Princess Larn Luang, Bangkok Japan 21 Pathumwan Princess, Bangkok Heritage Villas Zhouzhuang Managed By Dusit Dusit Doha Hotel Dusit Beach Resort Guam 2 White label properties in Thailand As of 31 December 2020 12
Our Hospitality Education Business
Offer full range of hospitality education programs with unique concept of fully integrated hotel - college
FULL DEGREE DIPLOMA
Hospitality Higher Full Time & Part
Vocational Diploma Courses Short Courses Incubation Online
Education Time Courses
Collaboration with esteemed partners
13Our Property Development Business
To generate short-term revenue through innovative projects leveraging Dusit’s rich hospitality experience
THB 46 bn mixed-use project on the corner of Silom- THB 1.4 bn high-end condominium project in Sriracha,
Rama IV road in partnership with Central Pattana. Chonburi, eastern of Thailand in partnership with Origin
Property.
Opening target To be completed by 2023
Hotel 4Q23
Office 1Q24
Retail 3Q24
Residence 3Q25
14Our Food Business
Aim for diversification with higher growth and margin
Distribution & Retail
Manufacture
• Develop KhongThai brand to market
• Dusit Gourmet as pre-processed Thai-inspired RTE/ RTC products
food sourcing, developing, and • Plan to develop/acquire food retail
marketing hub for Dusit group brand with high growth potential &
strong distribution channel
Bringing
ASIA to the
world
Food Outlet
Raw Material • Recurring income from international school
catering business (Thailand, Cambodia, and
• Traditional farming
Vietnam)
• Contract farming
• Healthy food business
• Smart farming/ Food technology
• Standalone restaurant
• Lab-generated food
Be Natural | Be Organic | Be Healthy | Support the Local Community
= Future plan
15Long-term Strategic Roadmap
162020 Recap
dusitD2 Khao Yai, Thailand 17Impact of the COVID-19 pandemic on global tourism
INTERNATIONAL ARRIVALS
Decline by 74%
1
Fewer Tourists (Billion)
INTERNATIOAL TOURIST
RECIEPTS
LOSS
(USD Trillion) 1.1
• Tourism back to 1990 levels as arrivals fall by more than 70% ECONOMIC LOSS
2
• Travel restrictions continue to weigh on the recovery In World GDP
• Demand remains weak overall despite a slight improvement in (USD Trillion)
some markets
Source: UNWTO January 2021 18International Tourist
Arrivals to Thailand
In millions
2019 2020
39.9 to 6.7
Travel ban is relaxed
for specific groups Second wave of
(not for tourist) from COVID-19 in
Early April, Thai government August to September Thailand since
-83%YoY
ordered a travel ban for end 2020
foreigners entering Thailand
Special Tourist VISA (STV)
Thai government has gradually for long stay is allowed
relaxed restrictions to allow more since October
3.8 3.7
business activities since May. 3.9
3.6 3.5 3.5
3.2 3.3 3.4
3.1 2.9 3.1
2.7
2.1
0.8
0.0 0.0 0.0 0.0 0.0 0.0 0.001 0.003 0.007
Jan-20 Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2020 2019
Source: Tourism Authority of Thailand 19Thriving in the new normal
FINANCIAL MODEL
1 Asset optimization
and financial
resilience
BUSINESS MODEL
2 Recover business
and reimagine our
services
ORGANIZATION
MODEL
3 Accelerate positive
transformation –
Business and IT
C O L L A B O R AT I O N I N N O VAT I O N CONTRIBUTION
20DTC’s Response to COVID-19
FIANCIAL MODEL | BUSINESS MODEL | ORGANIZATION MODEL
1 FINANCIAL
MODEL
Asset optimization and financial resilience
1Q20 2Q20 3Q20 4Q20
Cost containment
Financials Liquidity preservation
Divested Restructured educational
Asset trading business in the Philippines Gain on investment
optimization securities (divested Dusit Hospitality reclassification
Education Philippines)
Epicure Put new investment on-hold except for pre-COVID-19 committed transaction i.e.,
Catering MOU with MPIC** the acquisition of international school catering business in Vietnam (The Caterers)
Investment acquired to develop condo. by Epicure Catering*
business in & hotels in the • Postponed JV with MPIC** for one year
Vietnam* Philippines
• Postponed Elite Havens luxury villa management expansion plan to Australia
* Investment agreement was signed prior to the COVID-19 outbreak. Transaction was completed in 3Q20.
** Metro Pacific Investments Corporation
21Cost containment & Liquidity preservation
• Implemented cost-cutting measures especially fixed cost
- Leave without pay, executive salary cut, and redundancy review
- Lower advisory fees, administrative and marketing expenses
Cost saving • Achieved cost saving around 34% YoY in 2Q20, 31% YoY in 3Q20, and 37% YoY in 4Q20 resulting in
full year cost saving around 27% YoY.
• Plan to maintain fixed cost at this level (20% cut in 2020) from 2021 onwards.
• Postponed recent real estate projects (JV with MPIC)
• Selective investment
CAPEX reduction • Re-prioritized property renovation plan
• Excluding Dusit Central Park project and ASAI projects*, CAPEX plan in 2020 was cut by 60% from
original budget to THB 160 mn.
• Exercised right to postpone the rental payment of assets under DREIT from Apr 2020 and resumed
Rental fee reschedule payment from August 2020 onwards
• Exercised another right to postpone half of rental from Nov 2020 and will resume payment from May 2021
• Rescheduled long term loan (principal)
• Cash on hand and short-term investment THB 1,570 mn (31 Dec 2020)
Cashflow management • Unutilized credit facilities THB 1,230 mn
• Unutilized long-term project finance THB 725 mn
• Remaining proceeds from NRF divestment THB 200 mn
* The remaining CAPEX of ASAI hotels (approximately THB 400 mn) will be financed by the project finance from financial institution.
22DTC’s Response to COVID-19
FIANCIAL MODEL | BUSINESS MODEL | ORGANIZATION MODEL
2 BUSINESS
MODEL
Recover business and reimagine our services
with collaboration, innovation, and contribution
1Q20 2Q20 3Q20 4Q20
Operation
Raised hygiene and safety Launched ‘Dusit Care’ Innovative & Collaborative marketing schemes e.g.
standards, physical distance & • Stay with Confidence at Dusit
SHA certification from TAT
contactless services • Local Alike, Local Aroi, Local Alot
Temporary closure of all Dusit Princess
Temporary closure owned hotels in Gradually
managed hotels in China Thailand & overseas. re-opened Srinakarin Bangkok
Hotel Re-opened hotels in China hotels hotel as ASQ (Sep)
Dusit Dusit Thani Soft opening
Adjusted hotel dusitD2 Elite Havens ASAI Bangkok Dusit Thani
Beach Wellness Laguna
opening plan to Salwa expanded villa Resort Resort Chinatown
open 7 new hotels* Doha management to Guam (Thailand) Singapore
Suzhou
(Qatar) India (USA) (China) Working on wellness project
Temporary closure of Dusit Thani College**
Education and Le Cordon Bleu Dusit Re-opened school business
Temporary cease operation of Epicure in Resumed operation of Epicure in Vietnam (Jun) and
Vietnam, Thailand & Cambodia Thailand & Cambodia (Aug)
Food
Temporary closure of Re-opened Baan Dusit Thani restaurant; Redefined food retail business plan;
food outlets*** Expanded 3 Grab & Go kiosks for Kauai (Healthy fast-casual food outlets)
Dusit Central Park: Continued on piling and sub-structure works; Pre-sales with ROI
Property Postponed pre-sale of The Hampton Launched The Hampton sales
Sriracha by Origin & Dusit activities (Nov) and continued
the construction
*Including 2 white label properties in Thailand; **Available on-line course only; *** Delivery service only 23DTC’s Response to COVID-19
FIANCIAL MODEL | BUSINESS MODEL | ORGANIZATION MODEL
3 ORGANIZATION
MODEL
Accelerate positive transformation – Business and IT
1Q20 2Q20 3Q20 4Q20
Organizational
transformation
Reshape organization structure
Business & Re-enhance people capability
People Re-engage employee experience & integration
Reform process & system enablement
Uplift companies core operating systems:
• Back office (ERP)
Technology
• Front-end (CRM)
• Data Platform
24Financial performance
Dusit Thani Maldives 252020: A full year of challenges
Revenue contribution • COVID-19 slashed number of global international arrivals.
2019 2020 UNWTO reported a drop of over 1 bn international arrivals worldwide
in 2020 (-74% YoY). For Thailand, the Ministry of Tourism and Sports
Others
Others 27.1% reported around 6.7 mn of international tourist arrivals in 2020 (-83%
25.3%
YoY). Domestic travelling also declined from COVID-19 impact.
THB Hotel THB Hotel
61.7% 47.6% • DTC reported a net loss of THB 1,011 mn in 2020 compared to
6,117 mn 3,320 mn
Food a net profit of THB 320 mn in 2019. Net loss in 2020 came mainly from
Food 13.7% a significant drop of revenue from COVID-19 pandemic since the
6.6% beginning of the year that hit the Company’s performance since the
Education Education
6.4% 11.6% end of 1Q20 and 2Q20.
• Quarterly results improved QoQ since 3Q20 and continued to
4Q20. Hotel revenue increased QoQ driven by hotel re-openings and
Total Revenue EBITDA
better occupancy rate and ADR. Education revenue grew from rising
THB mn THB mn demand on short courses and higher number of students. Food
revenue boosted from Epicure Catering's acquisition in The Caterers
241
242
in Vietnam as planned.
• EBITDA improved QoQ thanks to higher revenue QoQ and partially
-207
-53
1,262
1,031
from cost containment since the end of 1Q20. 2020 EBITDA
384
643
remained positive thanks mainly to investment optimization as well
1Q20 2Q20 3Q20 4Q20 1Q20 2Q20 3Q20 4Q20
as better EBITDA of education and food business.
Remark: REIT data is included in hotel business
2019 Others = Gain on sales of Dusit Thani Maldives, gain on reclassification of investment, gain on sales of investments, revenue from Dusit Hospitality Services and Baan Dusit Thani, interest income,
dividend income, share of profit from investment in associates and JV, and others
2020 Others = Arrangement fee income, gain on investment reclassification and gain on sales of investment, gain on step up acquisition, gain on capital reduction of subsidiary, revenue from Dusit
Hospitality Services and Baan Dusit Thani, interest income, FX gain, share of profit from investment in associates and JV, and others
26Hotel key statistics (excluding Elite Havens)
2020: 43 properties No. of Rooms
10,194
8,363 • Opened 7 new hotels including 2 white labels in
7,181 7,150
6,834 Thailand
• Hotel stats started to improve in 3Q20 both
occupancy rate and RevPar after the re-opening
59% 62% 63% 79%
41% 38% 37%
74% most of hotels since June 2020.
26% 24%
in 11 countries
2016 2017 2018 2019 2020
Owned Managed
Occupancy Rate Avg Daily Rate RevPar
Owned Hotel
77% 74% THB THB
72% 73%
59%
36% 39%
30%
16%
3,727
3,597
3,670
3,610
3,208
4,467
2,045
2,018
2,706
2,690
2,636
2,841
2,685
1,143
2,615
1,051
320
597
2016
2017
2018
2019
2020
1Q20
2Q20
3Q20
4Q20
2016
2017
2018
2019
2020
1Q20
2Q20
3Q20
4Q20
2016
2017
2018
2019
2020
1Q20
2Q20
3Q20
4Q20
Remark: For comparison purpose, owned hotel stats in 2017 exclude Dusit Princess Korat (divested at end-2017). Owned hotel stats in 2018, 2019, and 2020 exclude Dusit Thani Bangkok (closed in 1Q19),
Dusit Suites Hotel Ratchadamri Bangkok (new investment in 2Q19) and ASAI Bangkok Chinatown (opened in 3Q20).
27Positive 2020 EBITDA from investment optimization
Unit: THB mn
Total Assets Total Liabilities Total Equity
21,861
17,701
14,237
11,573 5,354 5,881 6,078 5,905
9,033 9,980 8,332 4,160
4,099 5,495
3,679
2016 2017 2018 2019 2020 2016 2017 2018 2019 2020 2016 2017 2018 2019 2020
Non-current Current Non-current Current Non-controlling interest Total
Equity attributable to owners of the parents
28Higher gearing but remained under covenant
• Interest bearing debt increased significantly in 2020 due to the accounting adoption of TFRS 16 (Lease liability).
• Excluding lease liability as of 31 December 2020, IBD to total equity equals to 1.44 times which remains below DTC's policy of not
exceeding 1.50 times, and debenture covenant of not more than 1.75 times.
Leverage Ratio Interest Bearing Debt (IBD) IBD Repayment schedule
13,578
3.27x
THB mn
2022
7,598 36%
2023
1.44x 5,980 6%
4,459
0.76x 41% 2021 2024
0.29x 0.33x 17% 36% onwards
4% 22%
38%
2017 2018 2019 2020 2019 2020 2020
excl.TFRS16 THB 3,148 mn
IBD excl. TFRS 16 to Total equity P/N CP of LT-Loan
IBD to Total equity CP of Debenture LT-Loan
Debenture Lease liability
29Outlook
Dusit Devarana Hot Springs & Spa Conghua , Guangzhou, China 30Our view on
tourism recovery
31Our view on the post COVID-19 hospitality landscape
More A balanced Cross Industry New Hygiene, More Greater Wellness &
consolidation of portfolio of Collaboration Safety & Technology Sustainability & holistic health
hotels owned, leased Security Driven Local experiences
and managed measures Connection
models
322021 Outlook
Expect gradual turnaround of domestic tourism in
2Q21 Plan to grow food business
• Anticipate Thai hotel business to be under pressured in 1H21 from both existing business
due to the drastic drop of domestic traveler number from and future partnerships.
second wave of COVID-19 in Thailand since end-2020. Food
Hospitality
Domestic tourism is expected to gradually recover in 2Q21.
• International tourism is expected to gradually return in 2H21 • Main revenue driver will continue to come
after vaccination. It is likely to see a clearer picture of from the international school catering
international tourism recovery around 4Q21. business after Epicure Catering’s
successful acquisition of The Caterers in
Vietnam in 2020.
Education outlook remained positive given
• Higher numbers of student enrollment at Dusit Thani • The healthy food business under KAUAI
College and increasing demand in Le Cordon Bleu Dusit brand is planned to open a new flagship
store around mid-2021.
• The new Food School program scheduled to launched in
Education 2021 for those who interested in studying culinary arts,
beverages as well as those who want to be new food
entrepreneurs.
Dusit Central Park - a mixed-use project JV with Central Pattana
• Focus on piling, D-Walls, and sub-structure works.
• Will start official launch of residence sale to customers after satisfactory private sale for customers who have
Property
previously registered last year.
development The Hampton Sriracha by Origin and Dusit - a condominium PV project with Origin Property
• Plan to complete the project for transfer in 2023.
33Dusit Thani Guam Resort, USA 34
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