3Q21 Financial Performance and Outlook

The Erawan Group.

3Q21 Financial Performance

and Outlook

2 © 2021 ERAWAN. All rights reserved.

Executive Summary

3Q21

Performance

• Thailand hotel performance bottomed out during Jul-Aug 21 however the loosen of

travel restriction for both domestic and international is bringing back travelers

• HOP INN Philippines continued to outperform among all hotels

• Net loss at THB 623 million, higher loss compared to 2Q21

• Continue to implement comprehensive cost saving measures

• Ready to welcome fully vaccinated international arrivals from 63 countries with

marketing campaign together with health and safety standard

• Continue to capture domestic demand with “Rao Tiew Duay Kan” campaign

• Strengthen financial position through “Assets Divestment”; Renaissance Samui and

ibis Samui Bophut with total selling price at 925 MB

• Continue to develop and expand budget hotel segment as set forth in our long-term

growth strategy

4Q21 Update

3 © 2020 ERAWAN. All rights reserved. The Erawan Group.

3Q21

Performances


Erawan Hotel Performance by Quarter

Segment

3Q20 2Q21 3Q21

OCC RevPAR

(THB/room)OCC RevPAR

(THB/room)

OCC RevPAR(THB/room)

RevPARYoY

RevPARQoQ

Thailand 35% 282 20% 180 17% 138 51% 24%

Total Group(ex HOP INN)

14% 202 13% 171 10% 119 41% 30%

HOP INN 67% 407 31% 193 27% 164 60% 15%

Philippines

HOP INN 20% 179 46% 392 60% 513 187% 31%

• The outbreak of COVID-19 in Thailand hit the highest record in 3Q21 , all hotel segment underperformed 2Q21

• Philippines's hotels continued to outperform and improve quarter by quarter since hotel reopening in Aug-20


• Hotel performance bottomed out during Jul - Aug 21 due to the strengthen of control measures

• A rapid recovery has showed up from Sep 21 after easing restrictions

Thailand Hotels Occupancy by Month

COVID-19 2nd wave COVID-19 3rd wave

Strengthened

COVID-19

restrictions

nationwideThe beginning

of “Phuket

Sandbox”

Strengthened the COVID-19

restrictions nationwide

HOP Thailand

Luxury to Economy Hotels

Easing

COVID-19

measures

Easing

COVID-19

measures

2Q21 3Q21

%OCC movement

11%

18%

23%20%

8% 10% 10% 8%12%

32%

51%

60%

37%

23%

35%

24% 22%

35%

0%

10%

20%

30%

40%

50%

60%

70%

Jan-21 Feb-21 Mar-21 Apr-21 May-21 Jun-21 Jul-21 Aug-21 Sep-21


26%

37%

33%

46%

35%

46%

59% 58% 57%

64%

0%

10%

20%

30%

40%

50%

60%

70%

Dec-20 Jan-21 Feb-21 Mar-21 Apr-21 May-21 Jun-21 Jul-21 Aug-21 Sep-21

HOP Philippines

Philippines Hotels Occupancy by Month

%OCC movement

• HOP INN Philippines still rely on quarantine from seafarers and BPO but the demand is increasing

• Continue to generate positive EBITDA since reropened in 3Q20

3Q21


Summary of Financial Position

• 100% Approved for Loan rescheduling 2021

• 95% Approved for Covenant Testing Waiver 2021

• Average cost of Debt : 2.82% (vs 3.16% in 2020)

3,9296,960 6,309

12,760

11,634 11,855

2020 2Q21 3Q21

Total Interest-Bearing Debt

Total Equity

3.2x 1.9x

Interest Bearing Debt to Equity

IBD/E

1,623 1,541 1,207

2020 2Q21 3Q21

5,231 6,384 6,091

2020 2Q21 3Q21

(Unit : MB)

Cash on Hand

Available Credit Facilities

1.7x


Consolidate Profit & Loss Statement : 3Q21 & 9M21Unit : MB 3Q20 3Q21 %YoY 9M20 9M21 %YoY

Hotel Operating Income 398 210 -47% 1,616 815 -50%

Total Group Operating Income 427 226 -47% 1,717 866 -50%

Total Income 437 253 -42% 1,744 913 -48%

Operating Expenses (608) (496) -18% (1,873) (1,518) -19%

EBITDA (171) (243) -42% (129) (605) -367%

Depreciation & Amortization (258) (229) -11% (785) (716) -9%

Finance Costs (120) (126) +6% (393) (400) +2%

Taxes 11 (73) N/A 20 (50) N/A

Minority Interest 21 45 +112% 50 93 +83%

Normalized Net Profit / (Loss) (517) (626) -21% (1,237) (1,678) -36%

Share of Profit/(Loss) from ERWPF 3 3 -1% (5) 4 N/A

Loss on impairment of assets - - - - (131) N/A

Net Profit / (Loss) (514) (623) -21% (1,242) (1,805) -45%


Updates Outlook


ERW’s View on Tourism Recovery Trend & Outlook

Recovery

Factors

Global Progress of

Vaccinations

World

52% 1st dose(+22% vs 2Q21)

41% 2nd dose(+28% vs 2Q21)

Thailand

64% 1st dose(+41% vs 2Q21)

51% 2nd dose(+45% vs 2Q21)

• Containment of

COVID-19 Outbreaks

• Vaccination rate

• Easing of travel

restriction

• Government

reopening policy

Source : Our world in data as of 12 Nov 21

The Lifting of Travel Restrictions

In the final quarter of 2021, several countries across the

globe have started to loosen their travel restrictions.

As of October 21


Top

Destination

%Occ

(Aug-21)

No. of Tourist

Arrivals (YTD - Aug21 vs 2019)

Complete dose

vaccination rate

World 55% -80% 38%

Thailand

20% -100% 42%

Turkey

71% -54% 57%

Maldives

62% -34% 63%

Global Tourism Industry Current StatusMaldives and Turkey already opened country for foreign tourists

%OCC

Source : UNWTO Tourism Recovery Tracker (as of September 2021), Our World Data, Maldives Tourism

Maldives

Turkey

World

Thailand

0

10

20

30

40

50

60

70

80

Jan Feb Mar Apr May Jun Jul Aug


10% 10% 8%12%

20%22%

35%

24% 22%

35%

48%

57%

Jun-21 Jul-21 Aug-21 Sep-21 Oct-21 Nov-21 MTD

Chart Title

HOP Thailand

Luxury to Economy Hotels

Updates Recent Performance Jun - Nov 21

“Rao Tiew Duay Kan”

Phase 3 has started

since 15 Oct

“Quarantine-Free”

Thailand Reopening for

Vaccinated Tourists from

63 countries from 1 Nov

Occupancy of all segments has shown recovery trend • Domestic demand after eased measures & Rao Tiew Duay Kan campaign

• Reopened Thailand for foreign tourists

Data as of 11 Nov 2021


Our Business Trend after Thailand Reopens Border

Our Test & Go package has been launched and

800+ packages sold.

Competitive Test & Go packages were

launched with marketing support targeting key

emitting markets

Main revenue contributions; US ,UK, German,

South Korea, Taiwan, Singapore, Malaysia

Early demand remain soft. Pick up pace

improving for December 2021 and Q1 2022


Updates Strategy


Luxury

Midscale

Economy

HOP INN>40%EBITDA 2025F

Erawan 2025A Balanced Portfolio of Stability and Resilience

Increase the proportion of revenue and

profit generated by domestic customers

which will help the company to have

more stable stream of revenue and profit

as well as to reduce overall risks.


2021 Our Asset Divestment

Transaction Date 4Q21

AssetsRenaissance Samui

(Luxury Resort)

ibis Samui Bophut (Economy Hotel)

Total Contribution to Hotel Revenue

(Base on Year 2019)3%

Total Selling Price 925 MB

Objective

To strengthen financial status which enable to

have an appropriate capital structure for

business expansion according to our long-term

strategic directions


10 New Hotels Opening Timeline

Brand & Location No. of roomTentative

opening

HOP INN Ortigas Center Manila 231 Rooms 4Q21

Holiday Inn Cebu Business Park 180 Rooms

1H22

HOP INN Cebu Business Park 217 Rooms

HOP INN Chaiyaphum 61 Rooms

HOP INN Nan 62 Rooms

HOP INN Mahasarakham 61 Rooms

HOP INN Nakhon Ratchasima (2nd Branch) 79 Rooms

2H22HOP INN Bangkok – Krung Thonburi Station 120 Rooms

HOP INN Bangkok – Bangna 132 Rooms

HOP INN Bangkok - Onnut 133 Rooms 2023

Construction Pipeline

• Thailand 7 projects ongoing

• Philippines 3 projects ongoing

Update Capex 2021F at approx. 700 MB

*Investment plans are subject to change due to the situation


Our New HOP INN hotel in Philippines

Hotel Name HOP INN Ortigas Center Manila

Opening Date December 2021

Number of room 231 rooms

Location Ortigas Center, Pasig City, Metro Manila

Location

Highlight

The thriving central business district in the

midpoint of Metro Manila, the hotel is a

hop away from the most prominent office

buildings in the metro. Next door to

pioneer lifestyle and retail hubs and

foodie capital


Remain confident in the long-term potential of

Thai tourism industry

Focus on our strengths to grow in budget hotel

network and enhance capability to L-T grow

Thailand reopening on 1st November is the

great start for the recovery of Thai tourism

Capitalize on our brands’ strengths and

competitive advantages in the recovery

opportunity

Continue to strengthen capital structure, cost

saving, preserve the liquidity and adaptability

ERAWAN

in

Summary


Q&A


Hotel Statistic by Segment

3-month period (Jul-Sep)No. of room Occupancy ARR (THB/Night) RevPar (THB/Night)

3Q20 3Q21 3Q20 3Q21 YoY 3Q20 3Q21 YoY 3Q20 3Q21 YoY

Thailand 8,805 9,020 35% 17% 18% 812 812 - 282 138 51%

Luxury Hotels 989 989 11% 13% 2% 3,167 2,263 29% 337 292 13%

Midscale Hotels 1,668 1,668 14% 10% 4% 1,812 1,163 36% 245 114 54%

Economy Hotels 2,686 2,686 15% 9% 6% 805 844 20% 125 60 52%

Total Group (ex. HOP INN) 5,343 5,343 14% 10% 4% 1,443 1,184 18% 202 119 41%

HOP INN Hotels 3,462 3,677 67% 27% 40% 609 610 0% 407 164 60%

Philippines 843 843 20% 60% 40% 890 855 4% 179 513 187%

9-month period (Jan-Sep)No. of room Occupancy ARR (THB/Night) RevPar (THB/Night)

9M20 9M21 9M20 9M21 YoY 9M20 9M21 YoY 9M20 9M21 YoY

Thailand 8,805 9,020 35% 22% 13% 1,267 843 33% 444 188 58%

Luxury Hotels 989 989 20% 16% 4% 5,108 2,352 54% 998 369 63%

Midscale Hotels 1,668 1,668 23% 14% 9% 2,508 1,391 45% 575 199 65%

Economy Hotels 2,686 2,686 26% 12% 14% 1,240 630 49% 324 75 77%

Total Group (ex. HOP INN) 5,343 5,343 24% 13% 11% 2,205 1,258 43% 527 168 68%

HOP INN Hotels 3,462 3,677 52% 35% 17% 602 614 2% 315 216 31%

Philippines 843 843 28% 48% 20% 972 841 14% 276 407 47%


Erawan Hotel Portfolio as of 3Q21Category Hotel City Rooms Year Operate Ownership

Luxury Hotel Grand Hyatt Erawan Bangkok 380 1991 74%(1)

2 hotels | 821 rooms JW Marriott Bangkok 441 1997 100%

Luxury Resort Renaissance Koh Samui Samui 78 2005 100%

2 hotels | 168 rooms The Naka Island a Luxury Collection Phuket 90 Dec-08 100%

Midscale Hotel Courtyard by Marriott Bangkok 316 Nov-07 100%

4 hotels | 891 rooms Mercure Bangkok Siam Bangkok 189 Dec-12 100%

Novotel Sukhumvit 4 Bangkok 185 Oct-18 100%

Mercure Sukhumvit 24 Bangkok 201 Dec-19 100%

Midscale Resort Holiday Inn Pattaya Pattaya 567 Oct-09 100%

2 hotels | 777 rooms Mercure Pattaya Ocean Resort Pattaya 210 Dec-14 100%

Economy Hotel Ibis Sathorn Bangkok 213 Sep-08 100%

6 hotels | 1,301 rooms Ibis Nana Bangkok 200 Mar-09 100%

Ibis Riverside Bangkok 266 Nov-10 100%

Ibis Siam Bangkok 189 Dec-12 100%

Ibis Style Sukhumvit 4 Bangkok 133 Oct-18 100%

Ibis Sukhumvit 24 Bangkok 300 Dec-19 100%

Economy Resort Ibis Patong Phuket 258 May-08 20%(2)

6 hotels | 1,385 rooms Ibis Pattaya Pattaya 254 Jul-08 20%(2)

Ibis Samui Samui 209 Oct-08 100%

Ibis Kata Phuket 258 Dec-09 100%

Ibis Huahin Huahin 200 Jan-12 100%

Ibis Styles Krabi Ao Nang Krabi 206 Nov-14 100%



HOP INN Hotel Thailand HOP INN Nongkhai Nongkhai 79 Apr-14 100%

47 hotels | 3,677 rooms HOP INN Mukdahan Mukdahan 79 Apr-14 100%

HOP INN Kanchanaburi (2branches) Kanchanaburi 158 Jun-14/Dec17 100%

HOP INN Udonthani Udonthani 79 Jun-14 100%

HOP INN Ubon Ratchathani Ubon Ratchathani 79 Sep-14 100%

HOP INN Nakhon Ratchasrima Nakhon Ratchasrima 79 Sep-14 100%

HOP INN Maesod (2 branches) Tak 156 Oct-14/Sep-17 100%

HOP INN Sakaeo Sakaeo 79 Oct-14 100%

HOP INN Lampang Lampang 79 Nov-14 100%

HOP INN Khonkaen (2 branches) Khonkaen 158 Dec-14/Oct-17 100%

HOP INN Phitsanuloke Phitsanuloke 79 Aug-15 100%

HOP INN Trang Trang 79 Nov-15 100%

HOP INN Nakhonsrithammarat Nakhonsrithammarat 79 Nov-15 100%

HOP INN Suratthani Suratthani 75 Dec-15 100%

HOP INN Krabi (2 branches) Krabi 146 Dec-15/Mar-18 100%

HOP INN Roiet Roiet 79 Jan-16 100%

HOP INN Chumphon Chumphon 79 Mar-16 100%

HOP INN Chanthaburi Chanthaburi 75 Apr-16 100%

HOP INN Sakon Nakhon Sakon Nakhon 75 Jun-16 100%

HOP INN Chiang Mai Chiang Mai 75 Aug-16 100%



HOP INN Thailand HOP INN Hat Yai Hat Yai 79 Oct-16 100%

47 hotels | 3,677 rooms HOP INN Phuket Phuket 79 Dec-16 100%

HOP INN Burirum Burirum 79 Mar-17 100%

HOP INN Rayong Rayong 75 Apr-17 100%

HOP INN Chiang Rai Chiang Rai 79 May-17 100%

HOP INN Lampang City Center Lampang 79 Jun-17 100%

HOP INN Huahin Prachuap Khiri Khan 79 Sep-17 100%

HOP INN Nakornsawan Nakorn Sawan 79 Dec-17 100%

HOP INN Lopburi Lopburi 79 Dec-17 100%

HOP INN Surin Surin 79 Apr-18 100%

HOP INN Chonburi Chonburi 79 Aug-18 100%

HOP INN Chiangmai Superhighway Chiang Mai 79 Oct-18 100%

HOP INN Khon Kaen - Mittraphap Road (3rd Branch) Khon Kaen 79 Jul-19 100%

HOP INN BKK - Changwattana Bangkok 108 Jul-19 100%

HOP INN Rayong - Sukhumvit Road Rayong 79 Aug-19 100%

HOP INN Chiang Rai - Clock Tower Chiang Rai 70 Aug-19 100%

HOP INN Hat Yai – Downtown Songkla 79 Oct-19 100%

HOP INN Rangsit Bangkok 79 Oct-19 100%

HOP INN Nakorn Pathom Nakorn Pathom 79 Dec-19 100%

HOP INN Phuket Old Town Phuket 79 Mar-20 100%



HOP INN Thailand HOP INN Phitsanolok - Mittraphap Road Phitsanulok 79 Dec-20 100%

47 hotels | 3,677 rooms HOP INN Chiang Mai Airport Chiang Mai 75 Dec-20 100%

HOP INN Phetchaboon Phetchaboon 61 Feb-21 100%



HOP INN Philippines HOP INN Ermita Manila 168 Dec-16 100%

5 hotels | 843 rooms HOP INN Makati Manila 144 Aug-17 100%

HOP INN Aseana Manila 196 Apr-18 100%

HOP INN Alabang Manila 168 Jul-18 100%

HOP INN Quezon Manila 167 Dec-18 100%


For More information Please visit www.theerawan.com or contact [email protected]

3Q21 Financial Performance and Outlook

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