Company Presentationmint.listedcompany.com/misc/slides/Oppday_2Q11.pdf · 40.8% 20.2% 24.4% 29.8%...
Transcript of Company Presentationmint.listedcompany.com/misc/slides/Oppday_2Q11.pdf · 40.8% 20.2% 24.4% 29.8%...
Company PresentationAugust 2011
Oaks AuroraBrisbane, Australia
2
AGENDA2Q11 & 1H11 Results Review
Business Updates & Outlook
Oaks Hotels & Resorts
Oaks Broome
Appendix
3
2Q11 & 1H11 Results Review
The Pizza Company opened its first outlet in Vietnam in 2Q11
4
2Q11 & 1H11 Results1H11 REVENUE INCREASE OF 38%
5,326
4,0554,412
5,296
THB million
+55% YoY
6,686
MINT REPORTED 1H11 REVENUE INCREASE OF 38% YoY, ATTRIBUTABLE TO GROWTH IN ALL EXISTING BUSINESSES, AS WELL AS ADDITIONAL REVENUE SOURCES FROM NEW INITIATIVES OF THE HOTEL AND MIXED USE BUSINESS
1H11 revenue increased by 38% YoY, as a result of:
Recovery of hotel business, partly supported by the improvement in the tourism industry;
Recognition of sales of real estates including St. Regis residential units and Anantara Vacation Club;
Consolidation of Oaks Hotels & Resorts, Australia;
Strong growth of restaurant business;
Strong growth of retail trading business and resumption of contract manufacturing orders
6,271
9,381
12,957
+38% YoY
THB million
5
1H11 EBITDA INCREASE OF 37%
1H11 EBITDA INCREASED BY 37% YoY PRIMARILY PROPELLED BY THE NEW INITIATIVES OF HOTEL AND MIXED-USE BUSINESS, WHILE EBITDA MARGIN REMAINED STABLE OWING MAINLY TO EXPENSES OF TWO NEW HOTELS AND ANANTARA VACATION CLUB
1H11 EBITDA increased by 37% YoY, as a result of:
New sources of EBITDA from new initiatives of hotels’ mixed use business (i.e. St. Regis Residences) and Oaks helped increase the hotel EBITDA despite increased expenses from two new hotels, AnantaraKihavah and St. Regis Hotel;
Stable growth of the restaurant business
EBITDA of retail trading business almost doubled as a result of higher operating efficiency of retail trading business
THB million
22.5%EBITDA Margin
23.8% 15.2% 15.6% 19.9%
1,270
617690
1,056
1,506
1,072
+74% YoY
+37% YoY
1,887
2,578
EBITDA Margin
20.1% 19.9%
17.1%
THB million
2Q11 & 1H11 Results
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1H11 NET PROFIT INCREASE OF 63%
THB Million
1H11 NET PROFIT ROSE 63% YoY, WHILE NET PROFIT MARGIN ALSO EXPANDED TO 8.5%, AS PERFORMANCE OF ALL THREE BUSINESS UNITS IMPROVED, TOGETHER WITH CONTRIBUTION FROM NEW INITIATIVES UNDER THE MIXED USE BUSINESS
1H11 net profit increased by 63% YoY, as a result of:
Improvement in hotel and mixed use net profit primarily as a result of the sale of St. Regis Residences, despite higher expenses of the two newly opened hotels
Steady improvement in restaurant net profit of 19%
Net profit of retail trading and contract manufacturing business more than doubled in 1H11
599
79126
432
823
12.3%11.2% 1.9% 2.9% 8.2%Net Margin
279
4.5%
+254% YoY
+63% YoY
678
1,102
Net Margin 7.2% 8.5%
THB Million
2Q11 & 1H11 Results
7
Business Updates & Outlook
Anantara Mui Ne, Vietnam
8
FINANCIAL PERFORMANCE – HOTEL & MIXED USE Hotel Updates
Revenue
EBITDA
NPAT
EBITDA Margin
NetMargin
1Q111Q10 2Q10 3Q10 4Q10
THB Million
40.8% 20.2% 24.4% 29.8% 33.8%
20.9% -4.8% -2.0% 11.7% 20.0%
1H11 REVENUE AND PROFIT FROM THE HOTEL & MIXED-USE BUSINESS EXHIBITED IMPRESSIVE GROWTH OF 92% AND 94% YoY WITH STABLE NET MARGIN. STRIPPING OUT THE TWO NEW HOTELS AND ANANTARA VACATION CLUB, WHICH ARE STILL AT THEIR INITIAL STAGES, NET MARGIN WOULD HAVE IMPROVED
22.1%
3.1%
2Q11 1H10 1H11
33.6% 28.2%
11.8% 11.9%
Successfully acquired 100% of Oaks, with the consolidation of Oaks’ performance since June 2011;
Recognition of real estate business, both St. Regis Residences and AnantaraVacation Club;
Opened two hotels in 2Q11: equity-owned St. Regis Hotel Bangkok and Anantara Mui Ne under management contract;
Hotel business continued to see recovery as evidenced by improvement in organic occupancy;
Three Maldives hotels (Anantara Veli, Anantara Dhiguand Naladhu) continued to report significant improvement in 2Q11
Key Highlights
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MINT SUCCESSFULLY ACQUIRED 100% OF OAKS BY THE END OF JULY, AFTER 5 MONTHS PROCESS OF SHARES SOLICITATION AND TENDER OFFER. CONTRIBUTION FROM OAKS IS BECOMING SIGNIFICANT, EVEN WITH ONLY ONE MONTH OF OAKS’ OPERATIONS IN 2Q11
OAKS’ ACQUISITION & CONSOLIDATION Oaks
AUD million
9.1 3.0
55.7
12.14.6 84.5
Internal Cash
Debt
AUD 0.35Price per share AUD 0.52
1Q11 Financials 2Q11 Financials
One-Month Contribution from Oaks
THB million
550
114
One-time transaction
From operations
MINT starts to consolidate Oaks in June 2011;
Oaks’ one-month revenues from operation account for 5.5% of MINT’s 2Q11 total revenues;
MINT recorded one-time fair value adjustment of Bt 203 in 1Q11 from adjusting the first 20% investment from AUD 0.35 per share to AUD 0.52 per share; after netting off the transaction expenses, the one-time net profit from the transaction is Bt 89 million
10
2011F CAPEX IS EXPECTED TO BE OVER THB 6 MILLION BECAUSE OF OAKS’ ACQUISITION AND THE COMPLETION OF ST. REGIS AND ANANTARA KIHAVAH. DEBT TO EQUITY RATIO HAS INCREASED TO 1.3X AS AT END OF 2Q11 BUT IS EXPECTED TO COME DOWN IN 12-18 MONTHS
CAPEX & BALANCE SHEET AFTER OAKS’ ACQUISITION Oaks
on committed CAPEX
Additional CAPEX (non-committed average per annum) for New Opportunity/Acquisition(s)
THB million X
Revised CAPEX including Oaks Leverage Ratio
X
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RESIDENTIAL PROPERTY DEVELOPMENT Residential
Sold pending transfer
Potential; deposit
collected
Inventory
2011F
Inventory Inventory
Sold 50%
Inventory 50%
Sold 38%
Inventory 62%
Anantara Vacation Club
SALES OF ST. REGIS RESIDENTIAL UNITS WAS ONE OF THE MAJOR REVENUE CONTRIBUTORS FOR THE HOTEL & MIXED USE BUSINESS IN 1H11. BOTH ST. REGIS RESIDENCES AND THE ESTATES SAMUI WILL HAVE INVENTORIES AVAILABLE FOR SALE OVER THE NEXT FEW YEARS. REVENUES FROM ANANTARA VACATION CLUB WILL BE SIGNIFICANT CONTRIBUTOR GOING FORWARD WHEN INVENTORY OF THE RESIDENTIAL UNITS ARE SOLD OUT
3%
19%
8%
8%
7%
To date, 30% of the total sellable area has been recognized
ANANTARA VACATION CLUBAnantara
Vacation Club
LAUNCHED IN DEC 2010, ANANTARA VACATION CLUB STARTED TO CONTRIBUTE TO REVENUES OF THE HOTEL & MIXED USE BUSINESS SINCE 1Q11. THE SALES HAS EXCEEDED MINT’S INTERNAL TARGET. MINT EXPECTS SELLING MOMENTUM TO ACCELERATE OVER THE NEXT 2 YEARS
Singapore 27%
China8%
Malaysia8%
Hong Kong7%
Australia6%
Germany4%
UAE4%
UK4%
Others32%
AVC Members
12
Anantara Vacation Club is in the process of accumulating its own purpose-built properties:
Samui (Inventory of 16 million points)
The 20 units of exclusive suites and villas have been completed in Dec 2010 and are now available
Phuket (Inventory of 76 million points)
Two villas at Anantara Phuket Resort & Spa have been rented as immediate inventory
30 rai of land has been purchased to build 100 units of Anantara Vacation Club properties, to be available by the end of 2012
Other destinations, which are being actively pursued, include Bangkok and Bali
As at 30 June 2011, over USD 6 million of AVC have been sold, with Asians currently the biggest market
* As at July 2011
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MINT’S HOTEL STATISTICS SAW GRADUAL IMPROVEMENT SINCE ITS ALL-TIME-LOW IN 2Q10. EXCLUDING NEW HOTELS OPENED, ORGANIC OCCUPANCY OF EXISTING HOTELS SAW AN IMPROVEMENT TO 52% YoY
MINT’S HOTEL STATISTICS Hotel Outlook
THB
RevparADR % Occupancy
No of Rooms
Overall Occupancy
Organic OccupancyNo of hotel rooms
+436 rooms Anantara Sathorn+44 rooms Anantara Rasananda+78 rooms Anantara Kihavah
* Note: No of rooms exclude Elewana, Serendib and Kani Lanka rooms
+227 rooms St. Regis Hotel+89 rooms Anantara Mui Ne
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MINT CONTINUES TO SEE IMPROVEMENTS ACROSS ALL OF ITS FEEDER MARKETS, WITH A 26% YoY INCREASE IN 1H11 OVERALL ROOMNIGHTS COMPARED TO INCREASE IN THAILAND’S TOURIST ARRIVALS OF 28% YoY
MINT’S FEEDER MARKETS Performance ofExisting Hotels
Number of Room Nights China +123%
Hong Kong +61%Japan +35%Korea +35%
28%
59%
6%
22%
31%30%
60%
27%
India +41%
UAE +53%
MINT’s 1H11 Feeder Markets Thailand’s Top 5 Feeder MarketsNumber of
Tourists
68%
21%35%
34% 51%
MINT’s 1H11 Feeder Markets
* Despite earthquake and Tsunami in March 2011
UK +12%Russia+20%
Australia +28%
* Note: MINT’s feeder market excludes Oaks’
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THAILAND HAS BEEN RESILIENT TO SEVERAL GLOBAL CRISIS OVER THE YEARS, AS EVIDENCED BY THE INCREASED EUROPEAN ARRIVALS. THAILAND HOTEL RATES REMAIN COMPETITIVE COMPARED TO THE REGION
EUROPE & US TOURISTS Hotel Outlook
* Note: Rate of one night at Four Seasons on Sept 1, 2011 for a standard room
Number of Tourists
USD / Night
Dot com bubble
911 SARS Tsunami London bomb
Bangkok Coup
Bird Flu
Airport Closure
Pattaya Riot
Ratchprasong Riot
Financial Crisis
Number of tourists from Europe still held up
during the crisis
Thailand hotel rates remain competitive in
the region
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EXPANSION INTO MARKETS INSIDE AND OUTSIDE THAILAND HAS BEEN ON TRACK & SHOULD CONTRIBUTE WELL TO REVENUE & PROFIT IN COMING QUARTERS
MINT’S HOTEL EXPANSION PLANS Hotel Expansion
Investment Hotel
2012
• Anantara Kihavah, Maldives - 78 Rooms (Opened)• St. Regis Hotel, Bangkok - 227 Rooms (Opened)
8 Hotels / 594 Rooms
• Anantara Pa-Ngan - 44 Rooms (Opened)• Anantara Mui Ne, Vietnam - 89 Rooms (Opened)• Anantara Flamingo Villas, UAE - 30 Rooms
• Anantara Savannah Villas, UAE - 30 Rooms• Anantara Xishuangbanna, China - 103 Rooms• Anantara Uluwatu, Bali - 77 Rooms
• Eastern Mangroves by Anantara, UAE – 223 rooms• Anantara Blue City, Oman - 122 Rooms• Anantara Sanya, China - 122 Rooms• Anantara Chongqing, China - 150 Rooms• Anantara E-Mei, Chengdu, China - 150 Rooms• Anantara Mahabalipuram, India - 130 Rooms• Anantara Luang Prabang, Laos – 121 rooms
• Anantara La Cambuse, Mauritius - 215 Rooms• Anantara Wayanad, India - 95 Rooms
• Anantara Udaipur, India - 80 Rooms• Anantara Al Baleed, Oman - 136 Rooms• Anantara Al Akhdar, Oman – 134 Rooms
• Anantara Qiandao Lake, China – 104 rooms
55 Hotels & Properties / 7,248 Rooms
Management Contract
2011
2013
Total
• Masai Mara Camp, Kenya - 16 Rooms• Amboseli Camp, Kenya - 16 Rooms
• Anantara Sri Lanka - 125 Rooms• Serengeti Migration Camp Explorer, Tanzania -
20 Rooms• Meru, Kenya - 16 Rooms
• Australia, 31 properties – 4,509 rooms• New Zealand, 4 properties - 419 rooms• Dubai, 1 property - 165 rooms
• Grand Hotel, Gladstone Australia – 96 rooms
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1H11 REVENUE AND PROFIT FROM THE RESTAURANT BUSINESS EXHIBITED STRONG GROWTH OF OVER 11% WITH SLIGHT IMPROVEMENT IN NET MARGIN YoY
FINANCIAL PERFORMANCE - RESTAURANT
Revenue
EBITDA
NPAT
EBITDA Margin
NetMargin
1Q111Q10 2Q10 3Q10 4Q10
THB million
17.0% 15.8% 14.1% 16.6% 15.8%
7.1% 5.2% 5.6% 7.0% 7.2%
Key Highlights
All brands recorded strong and positive same store sales growth in 2Q11, from increase in both revenue per customer and number of customers;
Together with outlet expansion, total system sales was as high as 17% in 2Q11;
1H11 share of profit from The Coffee Club increased by 60% on the back of strong comparable sales growth and continued outlet expansion through franchise model;
The Food Group continued its international expansion with the opening of its first franchised The Pizza Company outlet in Vietnam
Restaurant Update
15.1%
2Q11
6.1%
16.4% 15.5%
6.2% 6.7%
1H10 1H11
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RESTAURANT SAME STORE SALES GROWTH MOMENTUM SAW EVEN STRONGER IMPROVEMENT IN 2Q11 , OWING TO STRONG DOMESTIC DEMAND AND MINT’S SUCCESSFUL PROMOTIONAL EFFORTS. TOTAL SYSTEM SALES GROWTH WAS ALSO PROPELED BY CONTINUED OUTLET EXPANSION
MINT’S RESTAURANT STATISTICS
Same Store Sales Growth Total System Sales Growth
1,117 1,123 1,133 1,148No. ofOutlets
18
1,157
34%
66%
34%
66%
49%
51%
2010 1Q11 2015F
1,148 1,157
2,188
Restaurant Outlets Breakdown by Geography
40%
60%
41%
59%
63%
37%
1,148 1,157
2,188
Restaurant Outlets Breakdown by Ownership
International
Thailand
Franchised
Owned
Restaurant Update
1,169
2Q11
33%
67%
1,169
2010 1Q11 2015F2Q11
42%
58%
1,169
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2Q11 FOOD AND PAPER COSTS AS A PERCENTAGE OF SALES HAS COME DOWN TO ITS LOWEST LEVEL IN SEVERAL YEARS AS A RESULT OF CONTINUED EFFECTIVE COST MANAGEMENT PROGRAM
EFFECTIVE MANAGEMENT OF FOOD COSTS
% of Food & Paper Costs to Sales
Fixed Long-Term Contract
Prices
Menu-Mix Re-Engineering
Supply Chain Management
Maximization of FTA Benefit
Pro-Active Inventory
Management
Strategy
Restaurant Update
Note: Food and paper costs as a percentage of sales rose in first quarter of every year as a result of “Buy-one-get-one-free” promotional campaign launched in March of every year to celebrate the anniversary of The Pizza Company
20
CONSISTENT MARKETING STRATEGIES RESULT IN IMPROVEMENTS IN SAME STORE SALES AND TOTAL SYSTEM SALES GROWTHS OVER THE YEARS
MARKETING INITATIVES OF KEY BRANDS Restaurant Update
Italian Inspired Concept
New Brand Ambassador
• Boost online ordering• Mobile order application
Emphasis on Quality Emphasis on Promotions & Advertisements
Summer Paradise Trip
• Focus on the premium quality
• Increase in frequency of ads
• Explore other distribution channels
Same Store Sales Growth
Total System Sales Growth
New Marketing Channels
21
RATIONALIZATION PLAN IS TAKING EFFECT, AS SAME STORE SALES IS STARTING TO SEE AN IMPROVING TREND. DESPITE NEGAVTIVE SAME STORE SALES GROWTH, THAI EXPRESS HAS ALWAYS REPORTED NET PROFIT
IMPROVEMENT AT THAI EXPRESS Restaurant Update
Same Store Sales Growth
Total System Sales Growth
No of Outlets
61 78 71 64
Thai Express has seen improvement in same store sales and total system sales growth since the rationalization plans of its performance in 2010;
Despite negative same store sales growth over the past two years due to domestic over-expansion, Thai Express reported net profit of SD 10 million in 2010;
Thai Express is also looking to expand into other countries in Asia, and targets to open an outlet in Beijing, China within 2011
Rationalization plans are as follows:• Loss-making stores are either
closed or rebranded into better performing brands such as Thai Express or Xin Wang Hong Kong Café
• Shokudo has been rebranded to Shokudo Coffee House and Kiseki Japanese Buffet Restaurant
* 2008 financials are since acquisition: May – Dec 2008
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THE COFFEE CLUB CONTINUES TO SEE STRONG AND STABLE GROWTH SINCE THE FOOD GROUP’S ACQUISITION IN EARLY 2008. NET PROFIT CONTINUED TO GROW IMPRESSIVELY.
STRONG PERFORMANCE OF THE COFFEE CLUB Restaurant Update
2.3%0.6%
5.7%
12.0%
18.1% 16.9% 16.7%18.0%
0%
5%
10%
15%
20%
2008 2009 2010 1H11
Same Store Sales Growth
Total System Sales Growth
214241
262 270
0
100
200
300
2008 2009 2010 1H11
The Brand sees strong and stable total system sales growth over the years, attributable to both improvement in same store sales growth as well as outlet expansion
The Coffee Club is seeing strong net profit growth, driven by its successful franchise model;
0
2
4
6
8
2008 2009 2010 1H10 1H11
AUD Million
The Coffee Club Net Profit
No of Outlets
161%
26%
37%
AUD million
23
Retail Trading Update
1H11 REVENUE OF RETAIL TRADING & CONTRACT MANUFACTURING INCREASED BY 28% WHILE PROFIT MORE THAN TRIPLED YoY, RESULTING IN SIGNIFICANT INCREASE IN NET MARGIN YoY
FINANCIAL PERFORMANCE – RETAIL TRADING & CONTRACT MANUFACTURING
Revenue
EBITDA
NPAT
EBITDA Margin
NetMargin
1Q111Q10 2Q10 3Q10 4Q10
THB million
5.5% 4.0% 5.4% 7.4% 7.6%
1.8% 0.1% 1.3% 3.4% 3.8%
Key Highlights
1H11 revenue from retail trading increased by over 30%, attributable to higher same store sales growth as a result of change of strategy to increase sales per sq.m., as well as low base in 2Q10 from the political unrest;
1H11 net profit more than tripled primarily because of the efficiency of higher sales per sq.m.;
1H11 revenue from contract manufacturing also rose by 21% as orders from key customers have resumed since the beginning of the year
7.3%
2Q11
3.0%
4.8% 7.5%
1H10
1.0%
1H11
3.4%
24
COMPARABLE SALES GROWTH AND TOTAL SALES GROWTH REMAINED STRONG. SALES CONTINUED TO IMPROVE YoY DESPITE THE REDUCTION IN THE NUMBER OF OUTLETS AND SPACE AS A RESULT OF UPGRADES OF STORE CONCEPTS AND A MORE TARGETED PRODUCT OFFERING WHICH LED TO AN IMPRESSIVE GROWTH OF SAES PER SQ.M. YoY
MINT’S RETAIL TRADING STATISTICS Retail Trading Update
Comparable Sales Growth Total Store Sales Growth
277 267 267 258No. ofOutlets
233 277 267 267 258No. ofOutlets
233
Fashion & Cosmetic Sales per Sq.m.
226 226
THB
25
GROWTH OF ALL BUSINESS UNITS ARE ON TRACK 5-Year Targets
22 hotels
676 restaurants
316 retail stores (14,524 Sqm)
2007
2Q11
2015F 73 hotels
67 residences
22 timeshare units
1,169 restaurants
226 retail stores (14,518Sqm)
> 105 hotels
+ residences
> 250 timeshare units
> 2,100 restaurants
> 300 retail stores (21,600 Sqm)
2007
2Q11
2015F
26
Oaks Hotels & Resorts
Oaks Charlotte Towers, Brisbane
27
OAKS’ UNIQUE PORTFOLIO IS A VALUABLE ADDITION TO MINT’S EXPANDING RESORT AND HOTEL PORTFOLIO, PROVIDING MINT WITH THE OPPORTUNITY TO EXPAND ITS EXTENSIVE HOTEL & SERVICED SUITES FOOTPRINT TO THE AUSTRALIAN AND NEW ZEALAND MARKETS
OAKS HOTELS & RESORTS Oaks
Oaks is one of Australia’s largest hotel and resort operators; operating in the 4-5 star accommodation segment;
Oaks currently manages 36 properties with an inventory of over 5,000 rental units located throughout Australia, New Zealand and Dubai. Oaks property portfolio includes CBD properties, resorts overlooking beaches and ski resorts.
MLR are rights that allow Oaks to operate and rent residential condominium units in a rental pool as a hotel/serviced suites;
Founded in 1991 and listed on ASX in January 2006, Oaks has consolidated a market-leading position in the Australian Management Letting Rights (“MLR”) business;
AucklandOaks iStay Residences
ChristchurchOaks iStay on Cashel
QueenstownOaks Club ResortOaks Shores
BroomeOaks Broome
Port DouglasOaks Lagoons
TownsvilleOaks Gateway on PalmerOaks M on Palmer
GlenelgOaks Liberty TowersOaks Plaza Pier
MelbourneOaks on CollinsOaks on LonsdaleOaks on Market
AdelaideOaks EmbassyOaks HorizonsOaks Precinct
SydneyOaks Goldsbrough ApartmentsOaks HarmonyOaks Hyde Park PlazaOaks Maestri TowersOaks Trafalgar
The EntranceOaks Waterfront Resort
Tea GardensOaks Boathouse
Sunshine CoastOaks Seaforth Resort
RedcliffeOaks Mon Komo
IpswichOaks Aspire Apartments
BrisbaneiStay River CityOaks 212 MargaretOaks AuroraOaks Casino TowersOaks Charlotte TowersOaks FelixOaks Festival TowersOaks Lexicon Apartments
GoldcoastOaks Calypso Plaza
DubaiOaks Liwa Heights
Australia
New Zealand
Dubai
28
OAKS IS ONE OF AUSTRALIA’S LARGEST HOTEL AND RESORT OPERATORS Oaks
Serviced Suites Brand Positioning Matrix Major Australian Serviced Suites Operators
OAKS SERVICES THE SHORT-TO-MEDIUM STAY CORPORATE AND LEISURE MARKETS. JUDGING BY THE NUMBER OF ROOMS, OAK IS CURRENTLY THE THIRD LARGEST SERVICED SUITES OPERATOR IN AUSTRALIA.
Source: CBRE Hotels As of August 2009, based on number of rooms
Sydney626 Rooms
Melbourne701 Rooms
Adelaide430 Rooms
Regional Corporate 591 Rooms
Regional Leisure
898 Rooms
New Zealand
419 Rooms
Dubai165 Rooms
Brisbane1,263 Rooms
29
OAKS’ REVENUES ARE PRIMARILY FROM MANAGEMENT LETTING FEE AND SERVICE CHARGES. OAK’S EXPANSION HAS BEEN LIMITED SINCE THE FINANCIAL CRISIS IN 2009.
OAKS HOTELS & RESORTS BUSINESS MODEL Oaks
Revenue Contribution Key Statistics
Inventory*
Occupancy
ADR
No of rooms
AUD
International
Source: CBRE Hotels
Customer Mix of Major Australian Serviced Suites Operators
*Excludes properties where Oaks only provides centralized service
30
OAKS SAW STABLE GROWTH FROM OPERATIONS DESPITE THE INDUSTRY DOWNTURN IN 2009, WHICH RESTRICTED ITS FINANCIAL POSITION AND CONSEQUENTLY ITS ABILITY TO EXPAND.
OAKS’ FINANCIALS Oaks
EBITDA Margin
28.7% 26.1% 20.1% 26.0%
NPAT Margin
12.6% 7.7% 3.1% 6.2%
AUD million Revenues
AUD million
AUD million
Oaks’ revenues from operation continued to increase despite the industry’s difficulties from the financial crisis in 2009, as a result of the improved occupancy and improved letting fees in 2010 and 2011 due to reallocation of inventory from permanent (long-stay) inventory to serviced apartment letting pool .
However, EBITDA declined in 2010 because of increase in leases, particularly the property in Dubai, and Oaks did not report any gain from sale of MLR in 2010 compared to gain of AUD 5 million in 2009.
2010 net profit declined in line with the decline in EBITDA.
Financial Highlights
Oaks Goldsbrough, Sydney
2011 performance improved as a result of higher yield, both from occupancy and ADR 17.8%
Note: FY ending 30 June
FY2008 FY2009 FY2010 FY2011E*
NM
Includes one-time provisions set aside before consolidating Oaks into MINT
From operations
* Estimated based on preliminary financials
OAKS ACQUISITION WILL BRING IN IMMEDIATE REVENUE AND EARNINGS, AS WELL AS DIVERSIFY MINT’S BUSINESS OUTSIDE THAILAND. LONGER TERM, THE SYNERGISTIC BENEFITS BETWEEN MINT AND OAKS SHOULD ALSO CREATE ADDITIONAL CONTRIBUTION TO MINT
Oaks
Hotel Revenue Hotel NPAT
Total Assets Total Revenue NPAT
Hotel Group Level
MINT Level
ENHANCEMENT OF GROWTH, SHAREHOLDERS’ VALUE & DIVERSIFICATION
18%
International
International
31
18%
42%18% 26%
THB billionTHB million
THB billion THB billion
18%30%
THB million
9% 15%
32
FOLLOWING THE SUCCESSFUL ACQUISITION, MINT INTENDS TO FOLLOW THE BUSINESS PLAN OUTLINED BELOW TO ENSURE THAT OAK’S STRONG GROWTH MOMENTUM IN THE MLR BUSINESS IS MAINTAINED AND FURTHER SUPPORTED BY MINT’S INTERNATIONAL HOSPITALITY PLATFORM
PRELIMINARY POST-ACQUISITION STRATEGIES Oaks
Remove short-term impediments to growth
Re-focus on the core business
Lead the expansion of the brand into Asia & potentially into investments in
complementary real estate assets
Provide a clear strategic direction & support for
future growth
Strategic Thrusts Current Action Plans
Stabilization of Oaks’ financial position:
Potential synergies & economies of scale across both international hospitality and restaurant business platforms.
Benefit from strategic investment in real estate assets and management of serviced suites, which will diversify its business and income streams and help MINT to become a larger player in the hospitality market.
Appointment of Board of Directors
Compulsory acquisition of 100% of Oaks’ shares & delisting of Oaks from ASX.
Preliminary Preliminary
P 1. Mr. Dillip Rajakarier 2. Mr. Stephen Chojnacki 3. Mr. Emmanuel Drivas 4. Mr. Paul Kenny 5. Ms. Pratana Mongkolkul 6. Mr. Brett Pointon
P
P Extension of term loanLower financing costsAdditional credit line for expansion
Continued expansion through: Acquisition of additional MLR contractsAdditional units in existing propertiesExpansion of Oaks’ brand into Asia
P
P
P
33
RECENT ACQUISITION OF GRAND HOTEL, GLADSTONE AUSTRALIAThe Grand Gladstone
Gladstone is located approximately 550km north of Brisbane and inthe mid-north coast of Queensland, Australia. It is fast becomingAustralia’s top mining boom town as a result of massive planned andcommitted infrastructure projects at various stages ofcommencement.
The Grand Hotel and its adjacent vacant land occupies a total of3,900-sqm site in the heart of Gladstone CBD, with approximately 132meters frontage to the street. The hotel is a two-storey heritagebuilding (over 100 years) which was rebuilt following a fire in 1994with the façade retained and further refurbished to a high standard in2006 (occupying approximately one third of total area). The entireproperty (the existing Grand hotel and its adjacent vacant land) haspotential to be re-built as a new hotel.
About the Destination: Gladstone, Australia
About the Asset: Iconic Gladstone Hotel
34
APPENDIX
35
HOTEL PERFORMANCE
HotelOccupancy Rate (%) ADR (Bt/night) RevPar (Bt/night)
2Q11 2Q10 2Q11 %Chg 2Q11 %Chg
Marriott 62% 54% 3,241 3% 2,016 20%
Anantara 44% 41% 6,347 6% 2,819 16%
Four Seasons 47% 15% 7,565 -36% 3,589 103%
Others 30% 27% 7,193 -1% 2,132 10%
Average 49% 41% 5,301 7% 2,619 30%
Avg. Thailand 50% 42% 4,174 8% 2,087 29%
HotelOccupancy Rate (%) ADR (Bt/night) RevPar (Bt/night)
2Q11 2Q10 2Q11 %Chg 2Q11 %Chg
Marriott 62% 54% 3,241 3% 2,016 20%
Anantara 47% 41% 6,399 7% 2,989 23%
Four Seasons 47% 15% 7,565 -36% 3,589 103%
Others 30% 27% 7,558 4% 2,247 16%
Average 52% 41% 5,160 4% 2,682 33%
Avg. Thailand 53% 42% 4,288 10% 2,273 41%
Systemwide
Organic
36
HOTEL PERFORMANCE
HotelOccupancy Rate (%) ADR (Bt/night) RevPar (Bt/night)
1H11 1H10 1H11 %Chg 1H11 %Chg
Marriott 70% 65% 3,798 -4% 2,677 3%
Anantara 46% 44% 7,455 -1% 3,409 2%
Four Seasons 53% 39% 8,730 -12% 4,638 21%
Others 32% 30% 9,164 -5% 2,894 0%
Average 54% 51% 6,133 0% 3,311 6%
Avg. Thailand 55% 54% 4,918 -3% 2,716 0%
HotelOccupancy Rate (%) ADR (Bt/night) RevPar (Bt/night)
1H11 1H10 1H11 %Chg 1H11 %Chg
Marriott 70% 65% 3,798 -4% 2,677 3%
Anantara 50% 44% 7,682 2% 3,879 16%
Four Seasons 53% 39% 8,730 -12% 4,638 21%
Others 32% 30% 10,134 5% 3,293 13%
Average 58% 51% 6,094 -1% 3,517 13%
Avg. Thailand 60% 54% 5,052 0% 3,012 11%
Systemwide
Organic
37
RESTAURANT PERFORMANCE
BrandSSS (%) TSS (%)
2Q11 2Q10 2Q11 2Q10
The Pizza Company 9.7% 2.6% 13.7% 3.4%
Swensen’s 8.4% 3.5% 17.5% 3.1%
Sizzler 22.3% 3.7% 24.5% 11.6%
Dairy Queen 15.6% 5.6% 21.9% 10.3%
Burger King 34.0% 0.6% 30.7% 2%
The Coffee Club 12.8% 1.4% 19.0% 14.0%
Thai Express 1.0% -6.2% 4.7% -4.3%
Average 12.3% 1.4% 17.4% 7.2%
Average Thailand 15.3% 3.0% 21.1% 5.2%
38
RESTAURANT PERFORMANCE
BrandSSS (%) TSS (%)
1H11 1H10 1H11 1H10
The Pizza Company 10.4% 1.0% 13.5% 2.3%
Swensen’s 2.9% 5.0% 10.1% 5.0%
Sizzler 16.3% 4.1% 18.4% 16.7%
Dairy Queen 10.6% 4.9% 15.6% 10.6%
Burger King 19.9% 5.5% 19.5% 11.2%
The Coffee Club 12.0% 1.7% 18.0% 15.7%
Thai Express -0.4% -11.3% 3.5% -3.4%
Average 10.0% 1.1% 14.6% 8.1%
Average Thailand 11.0% 3.4% 15.7% 6.8%
39
RESTAURANT OUTLETS – 2Q11
BrandNo. of outlets No. of outlets
TotalEquity Franchise Thailand International
The Pizza Company 171 81 215 37 252
Swensen’s 113 136 234 15 249
Sizzler 44 - 38 6 44
Dairy Queen 240 8 245 3 248
Burger King 27 - 27 - 27
The Coffee Club 19 251 5 265 270
Thai Express 53 11 - 64 64
Others 15 - 15 - 15
Total 682 487 779 390 1,169